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14 March 2024
Former Santa Cruz Resident Convicted of Threatening Two FBI AgentsRead the Press Release
SAN JOSE – A federal jury has convicted Brian Broderick of threatening two FBI agents following a one week-trial before the Hon. Edward J. Davila, United States District Judge, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. The jury convicted the defendant on one count of transmitting a communication containing a threat to injure, in violation of 18 U.S.C. § 875(c), rendering its verdict on March 8, 2024.
The evidence at trial showed that Broderick, 32, formerly of Santa Cruz, California, contacted the FBI a number of times in 2021 and 2022 to report several matters, including allegations concerning his former employer. On May 10, 2022, an FBI special agent sent Broderick an email to follow up on his reports. Beginning on that date, and lasting through June 1, 2022, Broderick sent a series of escalating and derogatory emails to multiple FBI agents, including the special agent who had responded to Broderick’s previous reports. On June 1, 2022, Broderick sent an email telling two FBI agents he was “literally hunting” the “idiot traitor” FBI agent who had initially reached out to him. Broderick went on to warn the FBI: “You act on this in . . . 24 hours, or I go beyond taking your livelihood.” On the same day, the defendant posted on his YouTube channel a video he filmed of himself surveilling a local FBI office.
Judge Davila scheduled a sentencing hearing for June 24, 2024. Broderick faces a maximum sentence of five years in prison. However, his sentence will be imposed only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Kenneth Chambers and Thomas Colthurst are prosecuting the case with the assistance of Laurie Worthen, Elise Etter, Kay Konopaske, and Kathleen Turner. This prosecution is the result of an investigation by the FBI.
Former Pearl Police Officer Pleads Guilty to Civil Rights OffenseRead the Press Release
Jackson, Miss. – A former police officer with the Pearl, Mississippi Police Department, pleaded guilty today to one count of acting under color of law to deprive a person of his civil rights.
According to court documents and information presented in court, Michael Christian Green, 26, while on duty as a certified law enforcement officer with the Pearl Police Department, forced an arrestee in custody to lick urine from the floor of a holding cell within the police department.
Green pleaded guilty to Deprivation of Civil Rights Under Color of Law in violation of Title 18 United States Code Section 242. He is scheduled to be sentenced on June 12, 2024, and faces a maximum penalty of 12 months in prison. A federal magistrate judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Acting Special Agent in Charge Maher Dimachkie of the FBI’s Jackson Field Office made the announcement.
This case was investigated by the Jackson Division of the FBI.
Assistant U.S. Attorney Samuel Goff is prosecuting the case.
If you or someone you know has been the victim of abuse by a law enforcement officer, call the FBI hotline at 1-800-CALL-FBI, email tips.fbi.gov or call the FBI Jackson Field Office at 601-948-5000
Former Kentucky Federal Corrections Lieutenant Sentenced for Violating the Civil Rights of an Inmate and Writing False ReportsRead the Press Release
PIKEVILLE, Ky. – A former Federal Bureau of Prisons (FBOP) lieutenant, Ryan O. Elliott, 47, was sentenced today to one year and one day in prison and one year of supervised release after pleading guilty to assaulting one inmate and writing a false report about the assault of a second inmate in an unrelated incident.
Two other former corrections officers at U.S. Penitentiary Big Sandy in Kentucky – Samuel Patrick, 41, and Clinton Pauley, 42 – previously pleaded guilty to related offenses and were sentenced to 36 and 40 months in prison, respectively. Another prison official, former Lieutenant Kevin Pearce, 39, was convicted of related offenses after a six-day trial and was sentenced to 66 months in prison.
“While he was a lieutenant in a federal prison, this defendant violently assaulted an inmate and then worked with other officers to cover up the assault of a second inmate,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Supervisors should lead by example — not abuse their authority by using excessive force against inmates entrusted to their care and by helping colleagues conceal misconduct. The Justice Department will vigorously pursue law enforcement officers at the local, state or federal level who commit, condone or enable violations of constitutional rights.”
“Not only did Elliott have a profound responsibility to protect people in his custody and care, he had an even greater one — to ensure that those under his supervision also protected them,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “He fell well short on both counts. Instead of honoring his obligations, he acquiesced in the abuse by his subordinates and then tried to cover it up. He now faces the consequences of this betrayal of the public trust placed in him.”
“Rather than perform his supervisory responsibilities and ensure that FBOP staff complied with the law, former Lieutenant Elliot joined with other FBOP staff to assault an inmate and to lie about a separate FBOP staff assault of an inmate,” said Special Agent in Charge William J. Hannah of the Justice Department’s Office of the Inspector General (DOJ-OIG) Midwest Region. “Today’s sentencing sends an important message to FBOP supervisors that they will be held to account for such egregious acts.”
According to court documents and evidence introduced at the trial of Pearce, Elliott, who at that time held the rank of lieutenant, joined Pauley and other officers in assaulting one inmate and, in a separate incident, wrote false reports about the assault of another inmate. On March 26, 2021, Elliott was present when an inmate was taken to a room with no cameras following a non-violent violation of prison rules. When another officer began to assault the inmate, Elliott assisted by tackling the inmate to the ground and punching him in the body. Elliott continued to assault the inmate, and Pauley joined. On or about April 30, 2021, Elliott was asked by Pearce to help cover up an assault against another inmate who had been beaten by Pauley and Patrick. Elliott, who had not been present for that assault, agreed to help Pearce cover up the assault by writing a false report claiming that he had been there and had seen no assault.
DOJ-OIG and the FBI Louisville Field Office investigated the case.
Trial Attorneys Thomas Johnson and Tara Allison of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky prosecuted the case.
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Former Kentucky Federal Corrections Lieutenant Sentenced for Violating the Civil Rights of an Inmate and Writing False ReportsRead the Press Release
A former Federal Bureau of Prisons (FBOP) lieutenant, Ryan O. Elliott, 47, was sentenced today to one year and one day in prison and one year of supervised release after pleading guilty to assaulting one inmate and writing a false report about the assault of a second inmate in an unrelated incident.
Two other former corrections officers at U.S. Penitentiary Big Sandy in Kentucky – Samuel Patrick, 41, and Clinton Pauley, 42 – previously pleaded guilty to related offenses and were sentenced to 36 and 40 months in prison, respectively. Another prison official, former Lieutenant Kevin Pearce, 39, was convicted of related offenses after a six-day trial and was sentenced to 66 months in prison.
“While he was a lieutenant in a federal prison, this defendant violently assaulted an inmate and then worked with other officers to cover up the assault of a second inmate,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Supervisors should lead by example — not abuse their authority by using excessive force against inmates entrusted to their care and by helping colleagues conceal misconduct. The Justice Department will vigorously pursue law enforcement officers at the local, state or federal level who commit, condone or enable violations of constitutional rights.”
“Not only did Elliot have a profound responsibility to protect people in his custody and care, he had an even greater one — to ensure that those under his supervision also protected them,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “He fell well short on both counts. Instead of honoring his obligations, he acquiesced in the abuse by his subordinates and then tried to cover it up. He now faces the consequences of this betrayal of the public trust placed in him.”
“Rather than perform his supervisory responsibilities and ensure that FBOP staff complied with the law, former Lieutenant Elliot joined with other FBOP staff to assault an inmate and to lie about a separate FBOP staff assault of an inmate,” said Special Agent in Charge William J. Hannah of the Justice Department’s Office of the Inspector General (DOJ-OIG) Midwest Region. “Today’s sentencing sends an important message to FBOP supervisors that they will be held to account for such egregious acts.”
“Our commitment to protecting citizens’ civil rights does not end at the gates of a prison. There is simply no place in our justice system for law enforcement officers, especially supervisors, who are willing to assault those under their protection and then cover up their misdeeds,” said Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office. “Our society trusts law enforcement to provide equal protection for the incarcerated. Breaching that trust has consequences, and FBI Louisville and its partners will work to hold those accountable who choose to abuse the power afforded them.”
According to court documents and evidence introduced at the trial of Pearce, Elliott, who at that time held the rank of lieutenant, joined Pauley and other officers in assaulting one inmate and, in a separate incident, wrote false reports about the assault of another inmate. On March 26, 2021, Elliott was present when an inmate was taken to a room with no cameras following a non-violent violation of prison rules. When another officer began to assault the inmate, Elliott assisted by tackling the inmate to the ground and punching him in the body. Elliott continued to assault the inmate, and Pauley joined. On or about April 30, 2021, Elliott was asked by Pearce to help cover up an assault against another inmate who had been beaten by Pauley and Patrick. Elliott, who had not been present for that assault, agreed to help Pearce cover up the assault by writing a false report claiming that he had been there and had seen no assault.
DOJ-OIG and the FBI Louisville Field Office investigated the case.
Trial Attorneys Thomas Johnson and Tara Allison of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky prosecuted the case.
Former Connecticut Resident Pleads Guilty to Tax EvasionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Harry T. Chavis, Jr., Special Agent in Charge of IRS Criminal Investigation in New England, today announced that DANNY D. BEEMAN, 66, of Beverly Hills, Florida, and a former resident of Connecticut, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in New Haven to tax evasion.
According to court documents and statements made in court, Beeman claimed to be the originator and developer of computer software technology capable of compressing electronically-stored data. In 2012, Beeman and other individuals formed a Connecticut company, identified in court documents as “Company-A,” to allow Beeman to develop the compression software. From 2013 to 2017, Company-A paid Beeman approximately $316,000 to develop the software. During this time, Beeman submitted fake invoices to Company-A seeking reimbursement for purchases of computer-related equipment that he never purchased. Beeman obtained approximately $2 million from Company-A through these fake invoices.
In total, from 2013 to 2017, Beeman received approximately $2.3 million from Company-A, all of which was taxable income. Beeman also had long-term capital gains income of approximately $1.5 million resulting from the sale of shares in Company-A. However, Beeman never filed tax returns for any of those years, resulting in a tax loss to the Internal Revenue Service of approximately $1,054,032.
Beeman faces a maximum term of imprisonment of 5 years. A sentencing date has not been scheduled.
Beeman is released pending sentencing.
This matter is being investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Former Bethel Park Police Lieutenant Sentenced for Transporting Illegal Alien Within the United StatesRead the Press Release
PITTSBURGH, Pa. - A resident of Bethel Park, Pennsylvania, was sentenced in federal court on March 13, 2024, to three years of probation, a $2,000 fine, and 50 hours of community service following his conviction of transporting an illegal alien within the United States, United States Attorney Eric G. Olshan announced today.
United States District Judge Robert J. Colville imposed the sentence on Blake Thomas Babin, 60.
According to information presented to the Court in connection with Babin’s guilty plea, from October 20, 2022, through December 30, 2022, Babin—at the time, a lieutenant with the Bethel Park Police Department—provided funding to an 18-year-old Venezuelan female living in Colombia for her transportation from Colombia to the border between Mexico and the United States, so that she could cross illegally into the United States. After two unsuccessful attempts, the female was able to get through the border somewhere near El Paso, Texas, where Babin was waiting to transport her to Phoenix and then to Pittsburgh. Babin admitted that he met the female in Colombia, where she was working as a prostitute. Text exchanges between the two, obtained during the investigation, revealed, in part, that Babin helped smuggle the female into the United States and then transported her knowing that she illegally entered the country because he “loved her” and wanted her to help him “keep his house.”
“Blake Babin betrayed his sworn oath to uphold the law when he paid for a Venezuelan teenager’s transportation to the United States border, knowing that she would then attempt to enter the country illegally so that they could carry on a romantic relationship,” U.S. Attorney Olshan said. “When police officers violate federal criminal law, this office will work in partnership with federal, state, and local law enforcement to hold them accountable.”
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, assisted by the Amtrak Police Department’s Pittsburgh Field Office and U.S. Customs and Border Protection, for the investigation leading to the successful prosecution of Babin.
Florida Man Arrested for $77 Million Tender Offer FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging JONATHAN MOYNAHAN LARMORE with tender offer fraud and securities fraud in connection with LARMORE’s announcement of a fake tender offer to manipulate the stock price of WeWork, Inc. (“WeWork”). LARMORE is alleged to have announced a false $77 million tender offer for WeWork stock, news of which immediately led investors to buy WeWork stock at fraudulently inflated prices during after-hours trading, in an effort to drive up the value of his WeWork call options and shares. LARMORE was arrested this morning and will be presented in federal court later today in the Middle District of Florida. The case is assigned to U.S. District Judge Paul A. Engelmayer.
U.S. Attorney Damian Williams said: “Jonathan Moynahan Larmore's alleged actions strike at the heart of market integrity and investor confidence. By allegedly orchestrating a deceptive scheme involving a counterfeit tender offer, he purportedly preyed upon investors, artificially inflating the value of WeWork stock for personal enrichment. The charges leveled against Larmore highlight the profound implications of his alleged fraudulent conduct, emphasizing the imperative of accountability and transparency in our financial systems.”
FBI Assistant Director in Charge James Smith said: “Jonathan Larmore allegedly drafted a fraudulent press release announcing a fictitious tender offer to inflate WeWork stock prices, after personally investing in the company through call options. Thankfully, Larmore was unable to widely distribute the press release before the end of the trading day, which failed to increase the share price in time and caused Larmore’s options to expire rather than making him millions. As alleged, even though his scheme did not net him his desired profits, Larmore’s conduct artificially impacted the market and caused harm to other shareholders. This indictment reaffirms the FBI’s commitment to protecting our nation’s economic integrity by holding responsible those who manipulate the system for financial gain.”
As alleged in the Indictment:[1]
In or about the fall of 2023, LARMORE perpetrated a scheme to use a false and fraudulent tender offer to manipulate the stock price of WeWork, a co-working space company that was, at all relevant times, headquartered in New York, New York, and publicly traded on the New York Stock Exchange.
LARMORE executed his scheme in three steps. First, on or about October 6, 2023, LARMORE created Cole Capital Funds LLC (“Cole Capital”), a purported a real estate investment firm that was, in fact, merely a sham company. Second, on or about November 1, 2023, and November 2, 2023, LARMORE spent more than $775,000 buying tens of thousands of cheap, short-dated, out-of-the-money WeWork call options (the vast majority of which were set to expire on November 3, 2023 at 4:00 p.m. EDT) and hundreds of thousands of shares of WeWork common stock — the latter primarily because two of LARMORE’s brokerage firms did not authorize him to trade options, but did authorize him to buy equities. Third, on or about November 3, 2023, LARMORE caused a press release to be published announcing that Cole Capital proposed to acquire 51% of all outstanding shares owned by minority shareholders of WeWork at a more-than-700% premium in an all-cash offer worth more than $77 million. At the time, WeWork was on the verge of bankruptcy.
In fact, neither LARMORE nor Cole Capital had the intent or ability to execute the announced tender offer. Instead, LARMORE intended for news of the tender offer to fraudulently inflate WeWork’s share price and, thereby, to increase the value of LARMORE’s newly acquired WeWork call options and shares.
On or about November 3, 2023, at approximately 5:12 p.m. EDT, the press release about Cole Capital’s purported tender offer was published. Within approximately one minute of publication, in after-hours trading, WeWork’s share price quickly increased more than 70% from $.85 to $1.45, and continued to rise until 5:31 p.m. EDT, when the stock reached its high of $2.14, which was a more-than-150% increase over the stock price prior to the publication of the press release.
The WeWork call options LARMORE purchased could have made LARMORE millions of dollars if the news of LARMORE’s fraudulent tender offer had caused WeWork’s share price to increase significantly prior to the expiration of LARMORE’s options. Unfortunately for LARMORE, he mistimed how long it would take to properly format his press release and have it published. As a result of these delays, LARMORE’s fraudulent press release was not published—and WeWork’s share price did not accordingly rise—until approximately 5:12 p.m. EDT on or about November 3, 2023, which was about an hour after the vast majority of LARMORE’s WeWork call options had expired worthless at 4:00 p.m. EDT that day.
On the following Monday, November 6, 2023, WeWork filed for Chapter 11 bankruptcy protection. On or about November 10, 2023, the small number of remaining WeWork options LARMORE had purchased expired out of the money and worthless.
* * *
LARMORE, 51, of Punta Gorda, Florida, is charged with one count of tender offer fraud and one count of securities fraud, each of which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which filed a civil action against LARMORE on November 28, 2023, for its assistance and cooperation in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Justin V. Rodriguez and Alex Rossmiller are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Financial analyst pleads guilty to $1.3M embezzlement schemeRead the Press Release
RICHMOND, Va. – A New York man pleaded guilty today to conspiracy to commit wire fraud for his part in embezzling over $1.3 million from his employer.
According to court documents, beginning in 2019, Luis Lee, 38, was the Senior Financial Analyst for a health services provider headquartered in Fredericksburg, Virginia. The company operates counseling and therapy programs, a foster care program, and programs focused on autism and intellectual and developmental disabilities. Lee was promoted to Treasury Manager in October 2022. As Senior Financial Analyst and Treasury Manager, Lee was responsible for monitoring the company’s bank accounts and payment processing, ensuring quality standards with third-party vendors, conducting risk and cash flow forecasting, and working with internal and external auditors, among other responsibilities.
In March 2020, Lee and a co-conspirator, the Chief Financial Officer (CFO) of the company, set up a fake vendor called JKemp Consulting LLC, and Lee opened a business checking account for JKemp. The CFO drafted a fraudulent engagement letter purporting to reflect an agreement between JKemp and the company to pay JKemp $100,000 per month in exchange for “various strategic and consulting services.” Beginning on March 26, 2020, the CFO drafted and submitted 12 fraudulent JKemp invoices for a total of $1,140,000, all of which his employees processed for payment in accordance with his instructions. Lee processed payments for some of the invoices, which he knew were fraudulent. Lee and the CFO divided the proceeds between themselves.
Lee and the CFO also bilked the company for $177,962 through a scheme to take advantage of a tuition reimbursement benefit. The company allowed employees to seek reimbursement for certain approved educational expenses for a maximum reimbursement of $5,250 per year. Between November 2020 and December 2022, the CFO drafted false documentation showing Lee’s purported enrollment in Hofstra University’s Master of Business Administration program. Though Lee was never enrolled in the program, Lee and the CFO caused the company to process the maximum reimbursement in 2020, 2021, and 2022. In November 2022, a final fraudulent reimbursement of $162,212 was processed.
Finally, in April 2022, the CFO directed an employee in his department to “pay out [Lee’s] entire vacation balance on the next payroll.” The employee processed the payment as directed, paying Lee approximately $6,000. The company’s policies authorized neither the directive to pay out Lee’s unused vacation hours nor Lee’s receipt of the funds.
In total, the conspirators misappropriated approximately $1,323,962 from the company.
Lee is scheduled to be sentenced on July 26. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea.
Assistant U.S. Attorneys Robert Day and Thomas A. Garnett are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3: 24-cr-30.
Federal Halfway House and Its President Sentenced for Wire Fraud and Making False StatementsRead the Press Release
ABINGDON, Va. – The former president and director of Secor Inc., a federal halfway house that contracted with the Federal Bureau of Prisons (BOP) to house inmates, was sentenced last week to 15 months in federal prison for making false statements and wire fraud. Secor, Inc. was sentenced to one year of probation.
Matthew Castle, 35, of Lebanon, Virginia, and Secor, Inc., through its counsel, pled guilty in November 2023 to one count of making materially false statements in a matter within the jurisdiction of the executive, legislative, or judicial branch of the United States, and one count of wire fraud.
Secor will serve a term of probation of one to five years. Additionally, Castle and Secor paid $208,105 in restitution, forfeited $40,000, and paid an additional $30,000 in fines.
“This sentence serves as another example to those doing business with the United States – if you commit fraud, you will be held accountable,” United States Attorney Christopher R. Kavanaugh said today. “As one of the first cases investigated internally by the United States Attorney’s Office and our financial fraud investigator, this marks the beginning of a new era for corporate criminal enforcement in the Western District of Virginia.”
According to court documents, Secor was a residential reentry center, commonly referred to as a “halfway house,” for inmates from the BOP who were nearing the end of their federal prison sentences.
In 2018, Secor entered into a contract with the BOP that allowed some of the offenders under the care of Secor to be assigned to “home confinement,” meaning those offenders resided at an approved residence not owned by Secor. BOP paid Secor one type of daily rate for offenders who resided at Secor’s facilities and a different monetary daily rate for those on home confinement.
Under the terms of the contract, Secor was required to outfit home confinement offenders with GPS monitoring equipment so the offenders’ whereabouts could be determined at all times. In addition, Secor personnel were required to personally visit each offender’s residence on at least a monthly basis to ensure the offender was living at the offender’s assigned residence, in a safe environment, and in accordance with applicable rules.
In fact, Secor did not outfit many of the home confinement offenders with GPS monitoring and did not conduct home visits as required. Nonetheless, Castle routinely completed documentation certifying that he had conducted such visits, and in an effort to make it appear that such visits had occurred when they had not, he would make notations such as “things were going well,” and the offender “had no questions or concerns to address at the time.”
Each month, Castle submitted fraudulent invoices to BOP for payment, and BOP issued payments based on their representations that Castle and Secor were providing home confinement services in accordance with the contract.
The case was investigated by the U.S. Attorney’s Office’s new Financial Fraud Investigator with assistance from the Russell County Sheriff’s Office and the Bureau of Prisons.
Assistant U.S. Attorneys Whit Pierce and Randy Ramseyer prosecuted the case.
Federal Grand Jury Indicts 6 Individuals on Drug and Gun ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 12-count indictment, which was recently unsealed, charging Fresno residents Jose Duenas, 32, Hector Duenas, 26, Anthony Varela, 43, and Eduardo Mendoza Sanchez, 33, as well as a Los Angeles resident Adolfo Santa Cruz Alvarez, 22, and Mexican national Francisco Santa Cruz Alvarez, 26, with trafficking fentanyl, methamphetamine, cocaine, and illegally possessing firearms, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in July 2023, law enforcement officers executed a search warrant at Hector Duenas’s residence in Fresno and seized a loaded firearm as well as over 5.5 pounds of methamphetamine, almost a pound of fentanyl, and 7 ounces of cocaine. Several months later, in September 2023, officers stopped two cars traveling in tandem occupied by Hector’s brother, Jose Duenas as well as two of his associates, Varela, and Mendoza Sanchez. From the two cars, the officers seized a loaded firearm and over 40 pounds of methamphetamine. Then, in January 2024, Adolfo Alvarez and Francisco Alvarez possessed more than 1 pound of cocaine with intent to distribute it to Jose Duenas. And in February 2024, Jose Duenas and Hector Duenas trafficked 14 ounces of fentanyl and more than a pound of methamphetamine. Additionally, they illegally possessed several firearms in furtherance of their drug trafficking crimes.
This case is the product of an investigation by the Fentanyl Overdose Response Team (FORT) (a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno and Clovis Police Departments), the U.S. Postal Inspection Service, and IRS Criminal Investigation with assistance from the Madera County Sheriff’s Office and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, the defendants face a range of penalties and fines including maximums of 20 years, 40 years, and life in prison as well as fines between $250,000 and $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Federal Court Permanently Enjoins Texas Return Preparer and Orders Disgorgement of Illicit Gains from Tax Return Preparation FeesRead the Press Release
The U.S. District Court for the Northern District of Texas permanently enjoined a Dallas-area tax return preparer today from preparing federal tax returns for others and from owning, operating or franchising any tax return preparation business, among other related prohibitions. The court also ordered the tax return preparer, Ashley Diondria Fisher, to pay almost $200,000 to the United States in ill-gotten tax preparation fees. Fisher consented to entry of the permanent injunction and disgorgement order against her.
The complaint alleged that Fisher operated a tax preparation business under the brand names Integrity Tax Services and Integrity Tax Returns, which filed tax returns claiming false business income or losses on Form 1040 Schedule C, false household help income and fabricated education credits. The complaint also alleged that the IRS previously suspended nine of Fisher’s Electronic Filing Identification Numbers (EFINs), which the IRS assigns to firms that have applied for and meet the requirements to file tax returns electronically. After the IRS suspended nine of Fisher’s EFINs, she allegedly used her aunt’s identity to apply for and use EFINs in her aunt’s name, and subsequently used EFINs in the names of others.
According to the IRS, anyone who is paid to prepare or assists in preparing federal tax returns is legally required to have a valid Preparer Tax Identification Number (PTIN) and paid preparers must sign and include their PTIN on returns. Not signing a return, commonly known as “ghost preparation,” is often a red flag that a preparer is attempting to avoid detection by the IRS. The complaint alleged Fisher operated as a ghost preparer.
The IRS estimates the harm caused by Fisher exceeds $3 million for tax years 2014 through 2019 alone.
The district court previously entered a preliminary injunction barring Fisher from preparing returns for others and has now made that disallowance permanent in today’s order. The terms of agreed order require that Fisher send notice of the injunction to each customer for whom she prepared federal tax returns and post a copy of the injunction in places where she conducts business, including social media accounts and websites. Fisher also agreed to disgorge $195,468.59 in illicitly received tax preparation fees to the United States.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Attorneys from the Tax Division handled the case.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid ghost preparers and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Permanent Injunction - Fisher - Entered.pdfDanville Man Pleads Guilty to Federal Robbery, Firearm ChargesRead the Press Release
ROANOKE, Virginia – A Danville man who fired a handgun during the robbery of a gas station in December 2022 pled guilty this week to federal robbery and firearm charges.
Isaac Graham, 42, pleaded guilty to Hobbs Act robbery and discharging a firearm during a crime of violence. He faces a mandatory minimum penalty of 10 years and a maximum penalty of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, Graham robbed a Danville convenience store at gunpoint in December 2022. Graham entered the store with a handgun, fired a round into the floor, and demanded money from the store clerk. Graham fled with approximately $1,400 from the store. He was arrested a short time later by the Danville Police Department.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia and Craig B. Kailimai, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Danville Police Department investigated the case.
Former Special Assistant U.S. Attorney J. Parker Gochenour and Assistant U.S. Attorney Lee Brett prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Convicted sex offender sentenced for child pornographyRead the Press Release
NEWPORT NEWS, Va. – A Newport News man with two previous convictions for sexual offenses involving minors was sentenced today to 20 years in prison for receipt of child pornography.
According to court documents, on Feb. 12, 2022, a person contacted Newport News Police to report sexually inappropriate messages between a minor and Eric Alan Starling, 45, on Snapchat. On March 8, 2022, an FBI task force officer contacted a probation officer and confirmed Starling’s identity and his status as a registered sex offender. A search of Starling’s Snapchat account confirmed that Starling was engaging in sexually inappropriate chats in which he openly admitted to being a sex offender and discussing with the minor how this could be a problem given their relative ages. Starling also had conversations with an underage individual that included talking about having sex with that individual and sending sexually inappropriate photos of himself.
On June 28, 2023, a federal search warrant was executed on Starling’s residence. Nine electronic devices were seized. After being caught, Starling admitted that he was in possession of “all kinds” of pornography. Forensic analysis of his devices showed images of child sex abuse material.
Starling was convicted on state charges in Virginia in 2006 and 2009. In 2006, Starling was found guilty of using a computer to solicit a minor. In 2009, Starling was found guilty of aggravated sexual battery of a child, taking indecent liberties with children, and sexually explicit material with a minor.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Assistant U.S. Attorneys Devon Heath and Lisa McKeel prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:23-cr-52.
Convicted Felon Sentenced to 42 Months in Federal Prison for His Role in a Straw Purchasing Conspiracy and Illegal Possession of FirearmsRead the Press Release
CONCORD – A convicted felon was sentenced today in federal court for conspiring with straw purchasers to buy him firearms, U.S. Attorney Jane E. Young announces.
Mario Marques, 25, was sentenced by U.S. District Court Joseph Laplante to 42 months in prison and three years of supervised release. On December 4, 2023, Marques pleaded guilty to conspiring to make false statements during the acquisition of firearms, and to being a felon in possession of a firearm.
“The defendant as a felon was prohibited from possessing guns. Yet, he was undeterred by the law in his criminal pursuit as he recruited others to purchase guns for him,” said U.S. Attorney Jane E. Young. “The firearms Marques illegally possessed and sold were recovered during investigations of drug trafficking and shooting crimes. His customers included juveniles, gang members, and criminals. As evident from today’s sentence, the U.S. Attorney’s Office and our law enforcement partners will continue to target those that perpetuate violence in our communities.”
"Far too often, the firearms that law enforcement officers seize during the commission of violent crimes, originate from straw purchasers,” said James M. Ferguson Special Agent in charge of ATF’s Boston Field Division. “In order to combat gun violence, we need to attack it at its source, which is straw purchasing. Mr. Marques' sentence ensures our entire community that they are a bit safer knowing he will be serving time in prison for his crimes. This is a great outcome, thank you to our partners at the U.S. Attorney’s Office.”
Between September 30 and November 20, 2021, Marques solicited straw purchasers to obtain firearms for him from multiple federally licensed firearms dealers in New Hampshire. Marques is a convicted felon and is legally prohibited from purchasing firearms himself. In obtaining the firearms, Marques selected the guns in advance for the straw purchasers to buy for him. On several occasions, Marques accompanied a straw purchaser to a firearms dealership, where the straw purchaser lied on the forms required to purchase the guns by saying he was buying the guns for himself, when he was really buying them for Marques.
Among other guns, Marques possessed a Springfield Armory Model XD .40 caliber semiautomatic pistol purchased in New Hampshire during the course of the conspiracy. Law enforcement officers recovered the Springfield Armory pistol on June 3, 2022 during investigation of a separate crime in Brockton, Massachusetts. Marques sold this firearm, as well as other firearms that straw purchasers bought for him, to other individuals, including gang members, who used the guns in connection with crimes.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) led the investigation. Assistant U.S. Attorney Aaron Gingrande prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Connecticut U.S. Attorney’s Office and DEA New England Release PSA Warning of Fentanyl and Counterfeit PillsRead the Press Release
The U.S. Attorney’s Office for the District of Connecticut and the New England Field Division of the Drug Enforcement Administration have released a public service announcement asking Connecticut residents to remain vigilant during this ongoing opioid abuse epidemic, and issuing a warning about the increasing percentage of fentanyl now found in counterfeit prescription pills that are illegally trafficked in the U.S.
“Overdose deaths due to fentanyl intoxication have become a devastating part of the fabric of Connecticut and our nation,” said U.S. Attorney Vanessa Roberts Avery. “While there are indications that annual overdose death rates are no longer rising and may have leveled off, or slightly decreased, far too many people continue to die accidentally by consuming fentanyl and counterfeit pills that contain it. While our office, the DEA, and our other federal, state, and local partners continue to work to dismantle drug trafficking rings and stem the flow of these deadly drugs, we ask the public to remain vigilant and continue to spread awareness to family and friends. We hope this public service announcement is viewed widely and the message in it absorbed by all. One pill can kill you, and there are resources available to help us end this scourge.”
“Last year, the DEA seized thousands of pounds of fentanyl powder and more than 79 million fentanyl-laced pills across the U.S.,” said David Lanzoni, Assistant Special Agent in Charge of the Drug Enforcement Administration, New England. “But as drug poisoning is now the leading cause of death of Americans between the ages of 18 and 45, we clearly have more work to do. Everyone needs to know that nearly all of the pills sold on the street are counterfeit, and approximately seven out of ten them contain a potentially lethal dose of fentanyl. Please watch this public service announcement and help spread these astonishing numbers.”
The public service announcement is available at these links:
- https://youtu.be/TvFf6Sy0q5M (YouTube)
- https://twitter.com/USAO_CT/status/1768287229619720230 (X/Twitter)
- https://www.facebook.com/usaoct/posts/pfbid028KVay6XfoVHDNPdPMxdyiHmdKV8vr4LcwVfss3VWi8apKyExM3rFVjaQnk8oLeTCl (Facebook)
Additional resources on fentanyl and fentanyl pills, as well as prevention and treatment, are available at www.dea.gov/onepill.
To learn more about the U.S. Attorney’s Office’s fentanyl awareness and drug prevention program for students, please visit: www.justice.gov/usao-ct/heat.
Information about the DEA New England Division can be found at: www.dea.gov/divisions/new-england.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 68 Assistant U.S. Attorneys and 57 staff members at offices in New Haven, Bridgeport and Hartford. For more information about the U.S. Attorney’s Office for the District of Connecticut, please visit www.justice.gov/ct.
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Cincinnati Man Sentenced for Brandishing a Weapon on Frontier Airlines FlightRead the Press Release
ATLANTA - William Allen Liebisch, 43, of Cincinnati, Ohio, has been sentenced to 30 months in prison for interfering with the performance of the duties of a flight crew. Liebisch carried a box cutter on an airplane en route to Tampa, Florida, and told a fellow passenger that he wanted to stab someone aboard the flight, causing the pilot to make an emergency landing in Atlanta.
“The flying public deserves to travel in peace without fear that a fellow passenger will create a violent disturbance,” said U.S. Attorney Ryan K. Buchanan. “Liebisch’s conduct created panic among the flight crew and his fellow travelers. His prosecution and sentence hopefully provide a message of deterrence to others.”
“We would like to thank the passengers who took action to prevent the violence Liebisch threatened in the air. No one should face harm while flying,” said FBI Atlanta Special Agent in Charge Keri Farley. “The FBI and our law enforcement partners will do everything we can to prevent violence, intimidation, and threats of violence that endanger passenger and flight crew safety on commercial flights.”
“Safety is paramount to everyone aboard commercial aircraft, including flight crew at their workplace,” said Joseph Harris, Special Agent-in-Charge, Department of Transportation Office of Inspector General, Southern Region. “As illustrated by today’s sentencing, we will continue working diligently with our law enforcement and prosecutorial partners to hold accountable unruly passengers who disrupt airline operations.”
According to U.S. Attorney Buchanan, the charge and other information presented in court: on November 11, 2022, William Allen Liebisch arrived at the Cincinnati airport with a ticket for Frontier Airlines Flight 1761, which was traveling from Cincinnati to Tampa. Liebisch entered the TSA security checkpoint where TSA officers confiscated a box cutter within his possession that the officials mistakenly believed they had disabled by removing the blade.
But once the flight departed, Liebisch inserted a spare blade that was stored in the handle of the box cutter. A passenger saw Liebisch use the box cutter to clean his nails. Another passenger reported to flight attendants that Liebisch said that he was going to stab someone. This information was passed on to the captain and the other flight attendants. Because there were no law enforcement officers on the flight, one attendant asked two male passengers to assist in keeping Liebisch confined in his seat. One passenger stood in the back nearby while the other took the seat of the passenger who made the report to the flight attendants. Both men and a flight attendant tried to keep Liebisch calm and under control for the remainder of the flight.
In the meantime, the captain made the decision to make an emergency landing at the nearest airport, which was Hartsfield-Jackson Atlanta International Airport. Once the plane landed, the passengers were instructed to deplane immediately and to leave their belongings on the plane. Atlanta Police Department (APD) officers had positioned themselves at the gate and, in effort to maintain calm, chose not to board the plane, but instead to wait for Liebisch to exit.
As the final remaining passengers neared the exit of the plane, Liebisch charged forward towards a flight attendant while wielding the box cutter. A passenger then tackled Liebisch from behind as the APD officers rushed on the plane to subdue and arrest him. Liebisch’s disturbance on the flight, his arrest, and TSA’s baggage re-inspection protocols forced Frontier Airlines to delay the flight to Tampa until the following morning, due to safety regulations that limit the number of hours a flight crew may be on duty in one day.
Liebisch has been sentenced to 30 months in prison, followed by three years of supervised release. Liebisch was convicted of the charge on December 14, 2023, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and the Department of Transportation.
Assistant United States Attorney Paul R. Jones prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Chippewa Falls Man Sentenced to 11 Years for Methamphetamine Trafficking and Possessing Firearms as a FelonRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Brandon Herman, 42, Chippewa Falls, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 11 years in federal prison for possessing 500 grams or more of methamphetamine intended for distribution and possessing firearms as a felon. Herman pleaded guilty to these charges on December 5, 2023.
On May 25, 2023, law enforcement executed a search warrant at the defendant’s rural residence in the Town of Lafayette in Chippewa County, Wisconsin, where they found numerous handguns and a rifle. Herman is prohibited from possessing firearms due to his previous felony convictions for possessing, manufacturing, and delivering controlled substances and possessing a firearm after a felony conviction.
During the search of Herman’s residence, law enforcement also found $19,438 in U.S. currency, more than 7 kilograms of marijuana, and more than 1 kilogram of methamphetamine inside a safe.
At the sentencing hearing, Judge Peterson noted Herman’s dramatic disregard for the law and substantial criminal history. Judge Peterson told Herman that he posed an ongoing danger to the community because he continued to commit dangerous drug and gun crimes.
The charges against Herman were the result of an investigation conducted by the Chippewa County Sheriff’s Office, Eau Claire County Sheriff’s Office, West Central Drug Task Force, St. Paul (Minnesota) Police Department, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Kathryn Ginsberg.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Cartersville Sex Offender Sentenced for Possessing Child PornographyRead the Press Release
ROME, Ga. - Jerry Joseph Southern, a convicted sex offender, was sentenced today to ten years of imprisonment for possessing thousands of digital images and videos depicting the rape and sexual abuse of children, including prepubescent minors under the age of 12.
“This office remains committed to working with our state and local partners to identify and prosecute individuals who commit heinous crimes against minors,” said U.S. Attorney Ryan K. Buchanan. “Southern’s sentence of imprisonment reflects the seriousness of his recidivist conduct and the need to prevent him from facilitating the exploitation of more children.”
“Stopping those like Southern that victimize children by viewing and sharing these horrific images of children is one of our highest priorities,” said Acting Special Agent in charge Anthony J. Patrone who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Thanks to the great work done by our agents, along with our state, local and federal partners, we were able to remove a serious threat from our community and we will continue to pursue those who commit these evil acts.”
According to U.S. Attorney Buchanan, the charge and other information presented in court: in July 2023, after receiving information that someone was using a cellular telephone associated with Southern to share videos and images of child sexual abuse, federal agents and local law enforcement officers executed a search warrant at Southern’s Cartersville home. During the search, agents found a cellular phone that Southern had hidden in an air vent. A search of the device revealed that Southern received, collected, and distributed a vast quantity of child sex abuse materials.
In 2013, Southern had been convicted of multiple counts of sexual exploitation of a child in state court after he pleaded guilty to the offenses. He was placed on probation and required to register as a sex offender after serving a prison term. But he repeatedly violated the terms of his probation, resulting in additional terms of incarceration in 2014, 2019, and 2020.
Southern has been sentenced to ten years in prison, followed by a lifetime of supervised release, and ordered to pay restitution in the amount of $28,500.00. Southern pleaded guilty to possession of a visual depiction of a minor engaged in sexually explicit conduct on December 19, 2023.
This case was investigated by Homeland Security Investigations, the Bartow County Sheriff’s Office, and the Georgia Bureau of Investigation, with assistance from the Murray County, Georgia Sheriff's Office and National Center for Missing and Exploited Children.
Assistant United States Attorneys Calvin A. Leipold, III and Theodore S. Hertzberg prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state, and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Canadian resident sentenced to 3+ years in prison for more than $1 million fraud on COVID relief programsRead the Press Release
Tacoma – A 45-year-old Nigerian citizen who defrauded U.S. COVID relief programs from his home in Canada, was sentenced today in U.S. District Court in Tacoma to 42 months in prison for wire fraud and aggravated identity theft announced U.S. Attorney Tessa M. Gorman. Sakiru Olanrewaju Ambali, was arrested in February 2023, in Frankfurt, Germany, as he traveled back to Canada from Nigeria. Ambali was detained in Germany and was extradited to the U.S. last August. At today’s sentencing hearing U.S. District Judge Robert J. Bryan said, “It is clear that this involved a long series of serious fraudulent conduct.”
“Mr. Ambali used the stolen identities of more than 630 American workers to fraudulently claim more than $1 million in pandemic unemployment benefits,” said U.S. Attorney Gorman. “The fraud created hardship for those who legitimately needed benefits and found someone had already filed a claim. This conduct, in the early days of COVID relief efforts, caused further disruption for thousands of people as Washington State stopped paying any claims for a time, while it tried to screen-out the fraud.”
According to records filed in the case, Ambali and codefendant Fatiu Ismaila Lawal, 45, used the stolen identities of thousands of workers to submit over 1,700 claims for pandemic unemployment benefits to over 25 different states, including Washington State. In total, the claims sought approximately $25 million, but the conspirators obtained approximately $2.4 million, primarily from pandemic unemployment benefits. As part of his plea agreement Ambali agreed to make restitution of $1,035,107.
The co-conspirators allegedly submitted claims for pandemic unemployment benefits to New York, Maryland, Michigan, Nevada, California, Washington and some 19 other states. Using 13 Google accounts, they filed some 900 claims. The co-conspirators also allegedly established four internet domain names that they then used for fraud – creating some 800 different email addresses that were used for fraud.
Additionally, between 2018 and 2021, Ambali used stolen personal information of eight U.S. citizens to try to claim tax refunds totaling more than $40,000. The IRS detected the fraud and did not pay the refunds.
Ambali also attempted to use the stolen American identities for Economic Injury Disaster Loans (EIDL) to defraud the Small Business Administration (SBA). The SBA caught most of the fraud and paid only $2,500.
Ambali and his co-conspirators had the proceeds of their fraud sent to cash cards or to “money mules” who transferred the funds according to instructions given by the co-conspirators. They also allegedly used stolen identities to open bank accounts and have the money deposited directly into those accounts for their use.
In her memo asking for a five-year sentence, Assistant United States Attorney Cindy Chang noted that Ambali’s web search history indicates he continued his fraudulent scheme for nearly three years. “Amabli first searched for (the Employment Security) website on or about May 5, 2020, two days before his first fraudulent submission to ESD, and he most recently visited the page on February 20, 2023, the day before he was arrested and last had access to his devices. In other words, it is possible that Ambali—who had never even stepped foot in the United States much less worked in Washington State—was defrauding ESD until the day before his arrest last year.”
Judge Bryan imposed five years of supervised release to follow prison. One condition is that he not enter the U.S. without permission from the Department of Homeland Security.
Co-defendant Fatiu Ismaila Lawal was arrested in Canada in February 2023 and is pending extradition.
The National Unemployment Fraud Task Force provided a lead on this case to the investigative team in Western Washington. The case was investigated by the FBI with assistance from U.S. Postal Inspection Service (USPIS) and the Department of Labor Office of Inspector General (DOL-OIG). Also contributing to the investigation were Washington State Employment Security Division (ESD), the Internal Revenue Service Criminal Investigation (IRS-CI), and the Small Business Administration (SBA).
The case is being prosecuted by Assistant United States Attorney Cindy Chang of the Western District of Washington. DOJ’s Office of International Affairs is assisting.
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 augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
California Man Pleads Guilty to Arranging Large Shipments of Methamphetamine from CaliforniaRead the Press Release
BANGOR, Maine: A California man pleaded guilty today in U.S. District Court in Bangor to his role in a methamphetamine trafficking conspiracy in Downeast Maine.
According to court records, between May 2022 and March 2023, Alex Hanna, 30, coordinated shipments of methamphetamine from a source in California to multiple individuals who distributed it in Downeast Maine. Hanna found others willing to either have USPS deliveries of methamphetamine shipped to their address or find other addresses where the packages could be delivered. Hanna, along with his conspirators, trafficked the methamphetamine in Maine.
In addition to the drug conspiracy charge, Hanna also pleaded guilty to conspiring to commit money laundering. He conspired with others in Maine to send money and proceeds from the sale of methamphetamine to his source in California using various money services, including Walmart2Walmart, Cash App, and Venmo. Hanna used coconspirators’ identifications and accounts to send the money in an effort to conceal and disguise his involvement in these transactions.
Hanna faces a mandatory minimum of 10 years and up to life in prison on the drug conspiracy charge and a maximum fine of $10 million. For the money laundering conspiracy charge, Hanna faces up to 20 years in prison and a $500,000 fine or twice the amount involved in the transaction, whichever is greater. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Maine Drug Enforcement Agency, FBI, Ellsworth Police Department, Holden Police Department, and Hancock County Sheriff’s Office investigated the case with assistance from the U.S. Postal Inspection Service.
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Burnsville Woman Indicted for Straw Purchasing Firearms Used in Fatal Shooting of Three First RespondersRead the Press Release
MINNEAPOLIS – A Burnsville woman has been indicted for straw purchasing multiple firearms for a felon, two of which were used to fatally shoot two police officers and a firefighter paramedic and injure a third police officer in Burnsville on February 18th, announced U.S. Attorney Andrew M. Luger.
According to court documents, between September 21, 2023, and January 25, 2024, Ashley Anne Dyrdahl, 35, conspired with Shannon Cortez Gooden to place firearms in Gooden’s hands, despite the fact Gooden could not legally own or possess firearms. On February 18, 2024, Gooden used the firearms that Dyrdahl supplied to murder two police officers and a firefighter paramedic, and injure a third officer, during an armed stand-off with law enforcement officers who were responding to a call for help.
According to the indictment, in 2008, Gooden was convicted in Dakota County of second-degree assault, a felony offense. In 2016, Dyrdahl began a domestic relationship with Gooden and, as early as 2019, knew that Gooden had been convicted of a felony offense. In 2020, Dyrdahl filed a letter in support of Gooden’s petition to restore his firearm rights in which she acknowledged his conviction and crime. Despite knowing of Gooden’s felony status, between September of 2023 and January of 2024, Dyrdahl purchased five firearms from two different federal firearms licensees (FFLs) at Gooden’s direction and knowingly and intentionally transferred the firearms to Gooden.
As part of the conspiracy alleged in the indictment, Gooden sent text messages to Dyrdahl of firearms he wanted her to purchase. Dyrdahl placed the orders at FFLs and filled out ATF Forms 4473 falsely attesting that she was the actual buyer of the firearm, and falsely attesting that she was not planning to transfer the firearm to a felon. During a text exchange between Dyrdahl and Gooden discussing background checks and other questions from firearm sellers, Dyrdahl told Gooden, “We just gotta make sure we’re smart about all this ya know?”
As part of the conspiracy alleged in the indictment, on September 21, 2023, Dyrdahl bought a Glock 47 9mm semiautomatic pistol from an FFL. The same day, Dyrdahl sent Gooden a text asking him how he liked the new gun. Gooden responded with a video in which he displayed the firearm and its attachments, then loaded the firearm with an extended magazine. Dyrdahl replied to the video with a smiling heart emoji. In a text exchange on October 24, 2023, Dyrdahl and Gooden discussed purchasing another firearm. Gooden sent Dyrdahl a link to a Glock 43X 9mm semiautomatic pistol for sale, specified which Burnsville FFL she should have the firearm sent to, and said he would send her money for the firearm. Dyrdahl ordered the firearm, texted Gooden a confirmation of the purchase, and said, “Ordered,” to which Gooden replied, “Love you.” On October 30, 2023, Dyrdahl picked up the Glock 43X pistol from the FFL and transferred it to Gooden.
According to the indictment, among the firearms Dyrdahl bought and transferred to Gooden at Gooden’s direction were three semiautomatic AR-15–style firearm lower-receivers. One of these was a Franklin Armory FAI-15 .300 caliber semiautomatic firearm that was equipped with a binary trigger. A firearm with a binary trigger fires one shot when the trigger is pulled, and another when the trigger is released, effectively doubling the rate of fire. Dyrdahl also purchased a .300 caliber barrel for the lower receiver. Dyrdahl knew that Gooden was loading the semiautomatic AR-15–style firearms with .300 Blackout ammunition, which is a heavier load ammunition that has an increased potential for lethality.
According to the indictment, on February 10, 2024, Gooden went to a shooting range. While at the range, he and Dyrdahl had the following text exchange:
Gooden: I love my 300 blackout
Dyrdahl: Haha good baby
Dyrdahl: That’s your 300 blackout?
Dyrdahl: Wow
Dyrdahl: [Smiling heart emoji]
Gooden: It’s nasty bae
Dyrdahl: hell yeah …
Gooden: Thanks for making me so happy
Dyrdahl: You’re welcome baby thank you for making me so happy to [sic]
According to the indictment, on February 18, 2024, Gooden used two AR-15-style semiautomatic firearms Dyrdahl provided to him—the firearm equipped with a binary trigger and loaded with .300 Blackout ammunition, and a Palmetto State Armory model PA-15 firearm—to ambush first responders, killing two police officers and a firefighter paramedic and injuring a third police officer. During the attack, Gooden fired more than 100 rounds of ammunition from the AR-15–style firearms. After the attack, law enforcement officers found in Dyrdahl and Gooden’s bedroom a stockpile of fully loaded magazines as well as boxes with hundreds of additional rounds of ammunition.
According to the indictment, at Gooden’s direction, Dyrdahl knowingly purchased five firearms, including a Glock model 47 9mm semiautomatic pistol purchased on September 21, 2023; a Palmetto State Armory model Sabre-15 firearm lower receiver purchased on October 18, 2023; a Glock model 43X 9mm semiautomatic pistol purchased on October 30, 2023; a Franklin Armory FAI-15 firearm lower receiver purchased on January 5, 2024; and a Palmetto State Armory PA-15 firearm lower receiver purchased on January 25, 2024. Dyrdahl knowingly made false and fictitious written statements to the FFLs when purchasing the firearms by falsely indicating on ATF Forms 4473 that she was the actual buyer of the firearms.
Because Gooden had a prior felony conviction, he was prohibited under federal law from possessing firearms or ammunition at any time.
The indictment charges Dyrdahl with one count of conspiracy, five counts of straw purchasing, and five counts of making false statements during the purchase of a firearm. She will make her initial appearance in U.S. District Court today before Magistrate Judge Elizabeth Cowan Wright.
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Burnsville Police Department, with assistance from the Dakota County Attorney’s Office and the Burnsville Fire Department.
Assistant U.S. Attorneys Kristian Weir and Thomas Calhoun-Lopez are prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dyrdahl IndictmentBuffalo man going to prison for 13 years on fentanyl convictionRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Maurice London, of Buffalo, NY, who was convicted of possession with intent to distribute 40 grams or more of fentanyl, was sentenced to serve 156 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney P. Richard Antoine, who is handling the case, stated that in April 2021, law enforcement began investigating London’s drug trafficking activities. Between April 29 and May 24, 2022, law enforcement conducted four controlled purchases of cocaine and fentanyl from London. On June 2, 2022, investigators executed a search warrant at London’s residence. During the search they recovered approximately $13,416 cash, drug paraphernalia, suspected Suboxone strips, 5.6 grams of THC, five cell phones, suspected marijuana, 144 grams of fentanyl, 30 grams of crack cocaine, 6 grams of methamphetamine, and 72 grams of lidocaine.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarantino, III, New York Field Division.
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Brooklyn Hospital Dietician Sentenced to Nearly Three Years in Prison for Filing False Tax Returns and Obstructing IRSRead the Press Release
A New York woman was sentenced today to 33 months in prison for filing false tax returns and obstructing the IRS.
According to court documents and evidence presented at trial, Ehrenfriede Kauapirura, a hospital dietician, sought to obtain tax refunds to which she was not entitled. As part of that scheme, Kauapirura filed a false amended 2015 tax return and a false 2016 tax return. On both returns, Kauapirura reported hundreds of thousands of dollars in fictitious tax withholdings that she used to claim refunds of approximately $250,000 for each year, which the IRS paid her.
After determining that Kauapirura’s claims were fraudulent, the IRS attempted to recoup the money. To thwart the IRS’ collection efforts, Kauapirura transferred funds from her personal bank account to a bank account in the name of a purported trust that she controlled. Kauapirura also submitted to the IRS a $1 million check drawn on a non-existent bank as payment of her tax obligations. In addition, despite earning substantial income from her job at the hospital, Kauapirura did not file individual tax returns for tax years 2017 through 2020.
In addition to her prison sentence, U.S. District Judge Diane Gujarati for the Eastern District of New York ordered Kauapirura to serve one year of supervised release and to pay $301,462.41 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Kenneth C. Vert and Michael C. Vasiliadis of the Tax Division prosecuted the case.
Bronx Man Sentenced to 11 Years in Prison for Sex Trafficking A MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MICHAEL PASCHAL was sentenced to 11 years in prison by U.S. District Judge Vernon S. Broderick for sex trafficking a minor victim. Today’s sentencing followed PASCHAL’s conviction on all counts at trial on May 9, 2023.
U.S. Attorney Damian Williams said: “Michael Paschal trafficked a vulnerable teenager who was one third his age, promising her food and shelter and immediately turning on her. He exploited the victim for his own financial gain, and when confronted by law enforcement, he showed no remorse for his despicable actions. Thanks to the courageous testimony of the victim, our law enforcement partners, and the career prosecutors of this Office, today, he was justly sentenced to over a decade in prison for his crimes.”
According to the Indictment and statements made in court proceedings and filings:
In July 2020, PASCHAL induced a minor victim (“Minor Victim-1”) to travel from another state to PASCHAL’s Bronx residence with the intent to sex traffic Minor Victim-1. PASCHAL operated a prostitution business from that residence in the Bronx. Minor Victim-1 stayed at PASCHAL’s residence for several weeks in July 2020, during which time PASCHAL directed Minor Victim-1 to engage in commercial sex and profited from it.
Minor Victim-1 was then returned to her home state, but several weeks later, PASCHAL again began sex trafficking Minor Victim-1 from his residence in the Bronx. PASCHAL posted prostitution ads containing sexually explicit photographs of Minor Victim-1 and communicated with sex buyers to facilitate commercial sex with Minor Victim-1.
PASCHAL sex trafficked Minor Victim-1, and worked with others to ensure that Minor Victim-1 was engaging in commercial sex for his profit, for weeks until she was recovered from PASCHAL’s residence in or about December 2020. When confronted, PASCHAL told law enforcement, in sum and substance, “what’s the big deal, she’s about to turn 18 anyway.”
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In addition to the prison term, PASCHAL, 53, of the Bronx, New York, was sentenced to five years of supervised release.
Mr. Williams praised the outstanding work of Homeland Security Investigations.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorneys Kevin Mead, Jackie Delligatti, and Jane Kim are in charge of the prosecution.
Beckley Man Sentenced to 10 Years in Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Lorenzo B. Herbert, 34, of Beckley, was sentenced today to 10 years in prison, to be followed by four years of supervised release, for possession with intent to distribute 40 grams or more of fentanyl and 50 grams or more of a mixture containing methamphetamine.
According to court documents and statements made in court, on September 28, 2022, law enforcement officers executed a search warrant at a residence near Beckley. Officers found quantities of fentanyl, a substance containing methamphetamine and $8,245. Herbert admitted that he was mixing and preparing fentanyl for distribution in the residence’s kitchen at the time the search warrant was executed. Herbert further admitted that the cash represented proceeds of previous drug trafficking activity.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Beckley/Raleigh County Drug and Violent Crime Unit, the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Metropolitan Drug Enforcement Network Team (MDENT), FBI Chicago, and the Chicago Police Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-193.
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Bank Insider Charged with Obstruction after Making False Statements to Agents About Accepting BribesRead the Press Release
NEWARK, N.J. – A Florida-based employee of an international financial institution was arrested today for obstruction of justice after making false statements to agents about accepting bribes, U.S. Attorney Philip R. Sellinger announced.
Gerardo Fermin Aquino Vargas, 38, of Hollywood, Florida, is charged by complaint with one count of obstruction of justice. Aquino had his initial appearance today before U.S. Magistrate Judge Jared M. Strauss in Miami, Florida federal court and was released on $100,000 bond.
According to documents filed in this case and statements made in court:
Aquino worked for an international financial institution at a branch located in Hollywood. Starting in April 2022, Aquino repeatedly and corruptly accepted bribes from individuals in exchange for opening accounts in the names of straw owners who were not present at the account openings. In exchange for the bribes, Aquino also issued debit cards for these accounts and unblocked debit cards that had been flagged for potential fraud by the financial institution. These accounts were used to transfer millions of dollars from the United States to Colombia.
When Aquino was interviewed by law enforcement in November 2023, he made false statements, including that he had only opened one or two accounts when the purported owners were not present at the bank and that he had never received payment for such actions. In fact, Aquino opened at least 28 accounts in this manner and accepted thousands of dollars in bribes for doing so. Aquino’s false statements obstructed a grand jury investigation being conducted in the District of New Jersey.
The charge of obstruction carries a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross amount of any pecuniary gain that any persons derived from the offense, or twice the gross amount of any pecuniary loss sustained by any victims of the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents and task force officers of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; special agents and task force officers of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Denise Foster in San Juan, Puerto Rico; and special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, New York Division, under the direction of Special Agent in Charge Patricia Tarasca with the investigation leading to the charges. He also thanked the U.S. Attorney’s Office for the Southern District of Florida; U.S. Customs and Border Protection in Atlanta, Georgia; Internal Revenue Service – Criminal Investigation in Miami, Florida; Federal Deposit Insurance Corporation – Office of Inspector General, South Florida Division; U.S. Drug Enforcement Administration in Miami, Florida; and U.S. Customs and Border Protection in Miami and Fort Lauderdale, Florida for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Marko Pesce of the Economic Crimes Unit in Newark and Trial Attorneys D. Zachary Adams, Chad Davis, and Chelsea Rooney of the Justice Department’s Money Laundering and Asset Recovery Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
aquino.complaint.pdfArkansas Man Sentenced to 20 Years in Prison for Distribution of Child PornographyRead the Press Release
CHARLOTTE, N.C. – Cannon Earl Kress, 50, of Fort Smith, Arkansas, was sentenced to 20 years in prison today for distribution of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Upon his release from prison, Kress will be subject to a lifetime of supervised release and must register as a sex offender. U.S. District Judge Kenneth D. Bell also ordered Kress to pay $18,000 in assessments and restitution.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Andy LeBeau of the Boone Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and today's sentencing hearing, in October 2022, Kress started a group on Kik where members of the group posted child pornography images and videos and discussed their sexual interest in children. An undercover detective infiltrated the group and downloaded child pornography videos that Kress had uploaded to the group. The undercover detective also chatted with Kress via the Kik messenger application. During those communications, Kress expressed an interest in engaging in illicit sexual acts with a five-year-old female child and arranged with the detective to meet and have sex with the child. On November 2, 2022, Kress traveled to Hickory, North Carolina, for the purpose of engaging in sexual acts with the child. Law enforcement was waiting for Kress at the pre-arranged meeting location and arrested him. Law enforcement seized Kress's phone and discovered child pornography videos on it.
On October 10, 2023, Kress pleaded guilty to distribution of child pornography. At today’s sentencing hearing, the Court granted the government’s request for the maximum 20-year sentence due, in part, to the nature and circumstances of Kress’s offense.
In making today’s announcement, U.S. Attorney King commended HSI and the Boone Police Department for their investigation of the case.
Assistant United States Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Annapolis Drug Dealer Sentenced to Eight Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Orlando Ray Coleman, Sr., age 44, of Millersville, Maryland, to eight years in federal prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; Anne Arundel County Police Chief Amal E. Awad; and Annapolis Police Chief Edward Jackson.
According to his guilty plea, in November 2019, law enforcement received information about several drug trafficking organizations operating in and around the Annapolis, Maryland area and identified Orland Ray Coleman, Sr. as a drug trafficker operating in the Annapolis and Baltimore metropolitan areas and who was believed to be responsible for distributing drugs to other drug trafficking organizations in the Annapolis area. Additional investigation revealed that Clarence Coby was a source of supply to Coleman, specifically providing Coleman and other Annapolis-areas drug traffickers with fentanyl and cocaine.
In mid-May 2021, several search warrants were executed on houses associated with Coleman. From Coleman’s house in Millersville, investigators recovered approximately $39,280 from a safe in the main bedroom. At a house in Glen Burnie, Maryland, believed to be his stash location, investigators recovered a total of approximately 256 grams of fentanyl, approximately 192 grams of cocaine, approximately 43 grams of crack cocaine, and approximately 453 grams of heroin, and paraphernalia to include numerous gel caps with residue, and two scales with residue, among other items. Additionally, from the bedroom closet law enforcement recovered a rifle, one magazine with 6 rounds of .223 caliber ammunition, one 7.62 x 39 round magazine with 32 rounds of 7.62 caliber ammunition, and a full box of loose ammunition in a grey box from a suitcase and a second rifle was recovered from another suitcase in the closet. Coleman admitted that he possessed the fentanyl with the intent to distribute it, and that the firearms, magazines, and ammunition constituted proceeds of Coleman’s drug trafficking activity or were used, or intended to be used, to facilitate Coleman’s drug trafficking activity.
On November 28, 2023, Clarence Coby, age 48, of Baltimore, Maryland, was sentenced to 14 years in federal prison for possession with intent to distribute fentanyl.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the DEA-led High Intensity Drug Trafficking Area Task Force comprised of agents and officers from the Anne Arundel County, Baltimore County and Howard County Police Departments, the Laurel City Police Department, the Annapolis Police Department, and the Maryland Transportation Authority Police Department; the FBI Annapolis Safe Streets Task Force; the Anne Arundel County Police Department; and the Annapolis Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney LaRai Everett, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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13 March 2024
Zuni Man Pleads Guilty to Sexual Abuse Against Children in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Rodney Waikaniwa pled guilty in federal court to 2 counts of abusive sexual contact. Waikaniwa, 51, of Zuni, and an enrolled member of the Zuni Pueblo, will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury indicted Waikaniwa on May 24, 2023. According to publicly available court records, between September 2l, 2000, and September 20, 2001, Waikaniwa intentionally touched his first victim, Jane Doe 1 with the intent of gratifying his own sexual desire. At the time, Jane Doe 1 was only about eight years old. Between January 1, 2013, and December 31, 2015, Waikaniwa intentionally touched a second victim, Jane Doe 2, with the same sexual intent. At the time, Jane Doe 2 was approximately 6 years old.
Under the terms of the agreement, at sentencing, Waikaniwa faces a minimum of ten years in prison up to a maximum of fifteen years. This term of incarceration will be followed by a term of supervised release of not less than 5 years and up to life. He will be required to register as a sex offender.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Mark A. Probasco is prosecuting the case.
View the Plea AgreementIf you have reason to believe you or your child may be a victim, please call the FBI at (505) 889-1300 or submit their tips online at tips.fbi.gov.
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Windsor Man Sentenced to 70 Months in Federal Prison for Trafficking Counterfeit Oxycodone Pills Containing FentanylRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL LEE, 26, of Windsor, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 70 months of imprisonment, followed by four years of supervised release, for trafficking counterfeit oxycodone pills containing fentanyl.
According to court documents and statements made in court, a DEA New Haven Tactical Diversion Squad investigation, which included court-authorized wiretaps, controlled purchases of narcotics and the seizure of drugs that had been shipped through the U.S. Mail, revealed that Michael Lee, his brother Alexander Lee, and others, received thousands of counterfeit oxycodone pills containing fentanyl, and other controlled substances, from a source of supply on the west coast of the U.S., and then distributed the drugs to various street-level distributors and numerous drug customers in Connecticut.
In February 2022, Michael and Alexander Lee traveled to California and shipped a package back to Alexander Lee’s Windsor residence. The package, which was intercepted and searched pursuant to a federal search warrant, contained approximately 18,000 fentanyl pills disguised as oxycodone. In May 2022, the Lees again traveled to California and shipped a package to an associate in Bloomfield. A search of the package revealed 1,800 tablets of Alprazolam (Xanax) that appeared to be manufactured in Mexico.
During the investigation, investigators also seized approximately 25 pounds of marijuana, seven firearms, and thousands of dollars in cash.
Michael and Alexander Lee were arrested on June 29, 2022. On that date, a search of Michael Lee’s residence revealed more than 1,000 counterfeit oxycodone pills, a small quantity of prescription Xanax tablets, and a loaded .45 caliber pistol with an extended magazine.
On November 6, 2023, Michael Lee pleaded guilty to conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl. Currently released on a $100,000 bond, he is required to report to prison on April 24.
Alexander Lee pleaded guilty to the same charge and, on September 6, 2023, was sentenced to 60 months of imprisonment.
This matter was investigated by the DEA New Haven Tactical Diversion Squad, with the assistance of the U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; Connecticut State Police; East Central Narcotics Task Force; and the Windsor and Enfield Police Departments. The DEA Tactical Diversion Squad is composed of personnel from the DEA and the Bristol, East Windsor, Hamden, New Britain, West Haven, Newington, Manchester, Glastonbury, and Watertown Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Stephanie T. Levick 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.
Waltham Man Convicted of Attempted Sex Trafficking of a ChildRead the Press Release
BOSTON – A Waltham man was convicted by a federal jury in Boston of attempted sex trafficking of a child.
Misael Fabian Medina, 38, was convicted of one count of attempted sex trafficking of a child; and one count of attempted coercion and enticement. U.S. District Court Judge Denise J. Casper scheduled sentencing for June 20, 2024 at 11:00 a.m. Medina was indicted by a federal grand jury in November 2022.
“The human trafficking industry is thriving because it is fueled by the demand from buyers. Our office has committed substantial resources to prosecuting the individuals who engage in human trafficking and the sex buyers, particularly when it comes to minors. This defendant showed up at a hotel with $200 in his hand in order to have sex with a 12-year-old girl who had been advertised on the internet. This law enforcement sting thankfully did not involve a real minor. Yet, the high amount of internet interest generated by this operation clearly demonstrates there is a very disturbing market for the sex trafficking of minors,” said Acting United States Attorney Joshua S. Levy. “It is our responsibility to send the message that there are severe consequences for engaging in this type of despicable conduct.”
“Medina planned to sexually abuse a 12-year-old girl. He negotiated with a trafficker and arrived at the hotel ready to assault a child. But instead of a trafficker, there was an undercover HSI special agent waiting for him,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England. “Homeland Security Investigations is absolutely committed to keeping children safe and thanks to the work of our agents and partners, there is one less predator on the streets.”
In November 2022, Misael Medina responded to an online advertisement offering commercial sex with two young girls. Through an ensuing text conversation with federal agents posing as the seller of the two girls, Medina agreed to pay $200 to engage in a sex act with a 12-year-old girl. Shortly thereafter, Medina went to a greater Boston hotel to meet with the purported seller. Once at the hotel, he met with an undercover agent and confirmed he had the money to pay for the commercial sex act. During that meeting, Medina was arrested and found to be in possession of a box of condoms.
The charge of attempted sex trafficking of a child under fourteen years old carries a mandatory minimum sentence of 15 years in prison with a maximum sentence of up to life in prison. The charge of coercion and enticement carries a mandatory minimum sentence of 10 years in prison, with a maximum term of up to life in prison. Both crimes provide a term of supervised release of at least five years 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.
If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact [email protected].
Acting U.S. Attorney Levy and SAC Krol made the announcement today. Assistant U.S. Attorneys Brian A. Fogerty and Jason A. Casey of the Criminal Division are prosecuting the case.
Vancouver Man Sentenced for Role in Penny Stock FraudRead the Press Release
BOSTON – A Vancouver man was sentenced today in federal court in Boston for participating in a conspiracy to defraud investors in the Boston-based biomedical company Endeavor Power Corp.
Marco G. Babini, 62, was sentenced by U.S. District Court Judge Patti B. Saris to time served (approximately two and a half months in prison) and 18 days of supervised release, with the parties deeming the defendant’s eight months of home incarceration prior to sentencing as additional time served. Babini was also ordered to pay a $50,000 fine. In December 2023, Babini pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud.
Babini was indicted by a federal grand jury in Boston in September 2015 along with co-conspirators Edward Withrow III and Samuel Brown. He was arrested in Canada in April 2020, at the request of the United States, and was extradited to the United States in July 2023.
Between approximately July 2012 and March 2013, Babini agreed to participate in a securities fraud scheme involving the planned sale of stock under concealed control during a promotional campaign, a course of conduct commonly known as a “pump-and-dump.” Babini had trading authority over brokerage accounts in Switzerland in the names of nominee entities that held a significant portion of the purportedly unrestricted shares of Endeavor. To raise money to fund a promotional campaign to generate investor demand for the shares, Babini agreed to execute pre-arranged trades with an undercover federal agent. The undercover agent was posing as an individual who had a corrupt network of stockbrokers willing to purchase and hold shares on behalf of their clients in exchange for monetary kickbacks. Babini agreed to execute pre-arranged trades with the goal of raising at least $200,000 and, in December 2012, Babini attempted to execute an initial test trade valued at $20,000.
In May 2018, Withrow pleaded guilty to one count of making false statements to the U.S. Securities & Exchange Commission. Brown separately pleaded guilty in July 2015 to one count of conspiracy to commit securities fraud and wire fraud and one count of making false statements to the SEC. Withrow and Brown were sentenced in December 2018 and January 2019, respectively.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The U.S. Justice Department’s Office of International Affairs and the Department of Justice Canada’s International Assistance Group provided valuable assistance in securing the extradition of Babini. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Utah Felon Convicted of Murder Returns to Prison for Stolen GunsRead the Press Release
ST. GEORGE, UT – A Southern Utah man, out on parole following a 1990 state murder conviction, was sentenced to 102 months’ imprisonment followed by three years of supervised release, after he unlawfully possessed a firearm and ammunition.
According to court documents, Joseph Charles Gardner, 65, of St. George, Utah, is restricted from possessing a firearm because of his murder conviction and illegally possessed a SCCY CPX 9mm handgun, ammunition, and other firearms. The 9mm handgun crossed state lines and therefore affected interstate commerce. As stated in court documents, Gardner spent nearly 30 years in prison for a state murder conviction where he shot and killed a woman, removed her clothing, and left her lifeless body in the desert. In 2020, he was granted parole and returned to St. George. In the fall of 2022, Gardner conspired with a coworker to conceal and dispose of stolen firearms. During an investigation, officers found one of the stolen firearms, a 9mm handgun, in Gardner’s possession. This is the same type of gun that killed his female victim in 1990. Officers also discovered thousands of bullets in three different calibers. During the investigation, law enforcement also learned that Gardner previously possessed other firearms, including an AR-15-style rifle.
U.S. Attorney Trina A. Higgins of the District of Utah made the announcement.
The St. George Police Department investigated the case.
Assistant U.S. Attorney Stephen P. Dent of the District of Utah prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Files Forfeiture Action to Recover Cryptocurrency Traceable to Pig Butchering Romance ScamRead the Press Release
BOSTON – The United States Attorney’s Office filed a civil forfeiture action to recover cryptocurrency alleged to include proceeds of a “pig butchering” fraud scheme targeting a Massachusetts resident as part of a romance scam. Specifically, the government seeks to forfeit 299,457.4 USD Coin (USDC), 1,455,305.997648 Tether (USDT), 102,278.515015 Tron (TRX), 3,032.1689461 Solana (SOL), 67.79400436 Binance Coin (BNB), 13,703.955431 Cardano (ADA) and 0.54151495 Ether (ETH) seized from two accounts located at Binance, a cryptocurrency exchange and custodian. Collectively, this cryptocurrency has a current estimated value of approximately $2,300,000.
In the spring of 2023, an investigation began into a “pig butchering” fraud scheme targeting a Massachusetts resident. In a pig-butchering scheme, scammers obtain funds from victims using manipulative tactics. The scammer establishes a level of trust with a victim in online communications and then entices the victim into investing in a fraudulent cryptocurrency scheme. Often the victim is enticed to make additional payments before realizing they are a victim of fraud. The “butchering” or “slaughtering” of the victim occurs once the victim’s assets, or funds, are stolen by the criminal, or criminals, ultimately causing the victim financial and emotional harm. Perpetrators behind “pig butchering” fraud schemes are often located overseas.
As alleged in court documents, a Massachusetts resident was a victim of a romance scam and was tricked into wiring over $400,000 into a cryptocurrency wallet hosted by a legitimate cryptocurrency exchange. Some of those funds were subsequently transferred to other wallets and ultimately to Binance. Some of the funds were traced to two Binance accounts and the cryptocurrency was seized in January 2024. The investigation revealed that the accounts from which the cryptocurrency was seized had been associated with funds from 36 other victims of fraud located across the United States.
It is a violation of federal law to use wire communications as part of a scheme to defraud or to obtain money or property by means of false or fraudulent pretenses. It is also a violation of federal law to conduct, or attempt to conduct, a financial transaction involving property which is known to represent the proceeds of some form of unlawful activity, knowing that such transaction is designed to conceal or disguise the nature, location, source, ownership, or control of those proceeds of unlawful activity. The complaint alleges that the cryptocurrency is traceable to proceeds of wire fraud and was involved in money laundering and is subject to forfeiture. A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims.
This is one of several civil forfeiture actions the U.S. Attorney’s Office has filed seeking to forfeit cryptocurrency traced to fraud schemes targeting Massachusetts victims.
Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams and “pig butchering” fraud scams – should contact [email protected].
Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement today. The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Matthew M. Lyons of the Asset Recovery Unit.
The details contained in the civil forfeiture complaint are allegations. The United States Attorney’s Office has not filed a corresponding criminal action on the matter.
U.S. Attorney’s Office Issues 2023 Annual ReportRead the Press Release
DETROIT –The United States Attorney’s Office made significant strides in 2023 in rebuilding community trust, reinvigorating our protection of civil rights, and restructuring our approach to violent crime, United States Attorney Dawn N. Ison announced today. The details of the office’s work in 2023 are set forth in a 51-page annual report highlighting prosecutions, community outreach, trials, convictions, systemic change, and community impact. The document is available here for review by the public.
The report sets forth the work done in service of the richly-diverse Eastern District of Michigan. The lawyers and support professionals in our Detroit, Flint, and Bay City offices, along with our partner agencies, had significant accomplishments this year. Among them:
• In fiscal year 2023, our office collected $68,224,759.35 in criminal and civil actions in judgments, fines, restitution, and forfeiture, more than twice our operating budget of $ 24.9 million. These funds are being returned to victims and taxpayers.
• Our efforts to target the most violent offenders who are harming public safety resulted in numerous federal convictions. We obtained conviction for the leader of the Seven Mile Bloods Gang who terrorized Detroit’s east side for many years. We also obtained Racketeer Influenced and Corrupt Organizations (“RICO”) convictions for three senior members of the Almighty Vice Lords Nation, a criminal enterprise that operates across the country including in Detroit.
• We filed suit against a Dearborn Heights landlord who is alleged to have subjected actual and prospective female tenants to sexual harassment on multiple occasions since at least 2017.
• We charged a former Warren police officer with violating a jail prisoner’s civil rights by assaulting the prisoner without justification.
• We remained committed to rooting out public corruption in our community as 2023 saw the Mayor of Inkster indicted by our office for bribery and guilty pleas from the Mayor of Taylor for conspiracy to receive bribes and wire fraud and the President of the Madison School Board for bribery and tax evasion.
• We obtained a conviction at trial against an ISIS fighter who left his home in Michigan and travelled to Yemen and Syria where he obtained ISIS training and spent more than 2 years as an ISIS soldier.
• The office has charged 142 defendants (52 in 2023) with participating in pandemic fraud schemes, ranging from unemployment insurance fraud conspiracies to fraud in pandemic loan programs. Of the individuals charged in such cases, the United States has thus far obtained more than 86 convictions.• We indicted 8 people and charged them with federal civil rights offenses and violations of the Freedom of Access to Clinic Entrances (FACE) Act for using physical obstruction to intimidate and interfere with employees and patients of a reproductive health clinic, because the clinic’s employees were providing, and the patients were seeking, reproductive health services.
Although we are encouraged by the results of our efforts in 2023, we recognize that we still have more work to do. The work detailed in the 2023 Annual Report details our ongoing efforts to keep our community safe, protect civil rights, and ensure fairness and opportunity for everyone in our community. Each day, the 220 men and women of the U.S. Attorney’s Office will continue to work diligently to further these goals and to advance the interests of our nation.
U.S. Attorney’s Office Collected More Than $60 Million in Civil, Criminal, and Asset Forfeiture Actions in Fiscal Year 2023Read the Press Release
CHICAGO — The U.S. Attorney’s Office for the Northern District of Illinois collected more than $60 million in criminal, civil, and asset forfeiture actions in Fiscal Year 2023, Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, announced today.
The 2023 collections included approximately $22.3 million in criminal actions, $29.5 million in civil actions, and $8.9 million in asset forfeiture actions. Additionally, the U.S. Attorney’s Office for the Northern District of Illinois worked with other U.S. Attorney’s Offices and Department of Justice components across the country to collect another $27.6 million in cases pursued jointly with those offices.
“Our attorneys and staff place a high priority on recovering funds for the federal treasury and victims of federal crimes,” said Acting U.S. Attorney Pasqual. “Our office will continue to responsibly safeguard taxpayer resources while delivering a valuable return to the citizens of our district.”
U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. Federal law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department of Justice’s Crime Victims Fund, which then distributes the money to federal and state victim compensation and victim assistance programs.
U.S. Attorney Will Thompson to Co-Host United Against Hate Community Forum on March 19 in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Will Thompson will join with Huntington Mayor Steve Williams and other community leaders for a United Against Hate forum on Tuesday, March 19, 2024, from 6 p.m. to 8 p.m. at the Marshall Health Network Arena Convention Center. The forum is free and open to the public.
The United Against Hate (UAH) Community Outreach Program is a nationwide initiative launched by the U.S. Department of Justice to combat unlawful acts of hate. The initiative aims to improve hate crime reporting by teaching community members how to identify, report, and help prevent hate crimes, and by building trust between law enforcement and communities.
UAH shares resources to combat hate and encourages discussion between representatives from law enforcement, community organizations, and members of the public. UAH emphasizes that while some hate-fueled incidents—standing alone—may not be a crime, people should still report those incidents to local law enforcement and the FBI.
“This forum is an excellent opportunity to hear from the community, raise awareness and further education about hate crimes and bias incidents,” Thompson said. “Working together and listening to each other is how we combat violence, threats and other unlawful acts fueled by hate.”
"Huntington is a welcoming community that embraces diversity, equity and inclusion, but there are still individuals who want to tear down the progress we have made," Mayor Steve Williams said. "That's why I am eager to partner with the U.S. Attorney Will Thompson and engage our community on this important topic."
U.S. Attorneys from across the country have so far hosted over 50 UAH events since the September 2022 launch of the initiative. The March 19, 2024, forum will include presentations about UAH and federal and West Virginia hate crime laws as well as a panel session featuring community leaders.
The panel is scheduled to include:
- Charles Meyers: past president, Cabell-Huntington NAACP
- Hoyt Glazer, J.D.: president, Temple B’nai Sholom
- Sue Barazi: vice president, Islamic Association of West Virginia
- Ally Layman: president, Huntington Pride
- Angela Adams: president and CEO, Mountain State Centers for Independent Living
For more information about the forum, contact Tracy Chapman with the U.S. Attorney’s Office at (800) 659-8726, (304) 340-2349 or [email protected].
WHAT: United Against Hate Community Forum
WHEN: Tuesday, March 19, 2024, from 6 p.m. to 8 p.m.
WHERE: Marshall Health Network Arena Convention Center, One Civic Center Plaza, Huntington, W.Va.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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Two Texas men indicted for bank robbery in KansasRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging two men in connection with a bank robbery.
According to court documents, Demond M. Johnson, 18, and Ryan D. Smith, 25, both of Houston, Texas, are charged with one count of bank robbery. The defendants are accused of robbing Credit Union of America on South Ridge Road in Wichita, Kansas, on October 17, 2023.
If convicted, each faces up to 20 years in prison.
The Federal Bureau of Investigation (FBI) and Wichita Police Department are investigating the case.
Assistant U.S. Attorney Ola Odeyemi is prosecuting the case.
OTHER INDICTMENTS
Timothy Daniel Luker, 35, of Wichita was indicted on one count of distribution of child pornography. Homeland Security Investigations (HSI) and the Kansas Internet Crimes Against Children (ICAC) Task Force are investigating the case. Assistant U.S. Attorney Molly Gordon 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.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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Two Methamphetamine Traffickers in Nampa Each Sentenced to over 5 Years in Federal PrisonRead the Press Release
BOISE – U.S. Attorney Josh Hurwit announced the sentences imposed yesterday in two separate cases in which the defendants were sentenced to over five years in federal prison methamphetamine distribution.
“Methamphetamine has devastating effects on our communities, and we will spare no effort to make sure that those who deal this poison face significant consequences,” said U.S. Attorney Hurwit. “I want to thank our local law enforcement partners who worked hand-in-hand with our prosecutors in these cases. We will continue our teamwork to keep Idaho safe.”
Yesterday, Fernie Garcia, 36, of Nampa, was sentenced to 63 months in federal prison for distributing methamphetamine. According to court records, in February 2023, Garcia sold a pound of methamphetamine to another person on two separate occasions. On February 22, 2023, Garcia was stopped by the Nampa Police Department. A drug canine alerted on the vehicle and two pounds of methamphetamine were found. Garcia was arrested on scene and admitted that the drugs in the vehicle belonged to him. At the time of arrest, Garcia was on parole for a felony sex offense. Although Garcia admitted to joining a gang in his youth, he contends he dropped out of the gang during his previous prison sentence.
“We’ll continue to work hard to keep our streets safe. Our police officers and their K-9 partners work diligently every shift to help us get drugs out of our community,” said Nampa Police Chief Joe Huff. “Criminals need to understand the Nampa Police Department works regularly with our law enforcement partners to put drug dealers in jail, and we have no plans of ending our team effort.”
U.S. District Judge Amanda K. Brailsford also ordered Garcia to serve five years of supervised release following his prison sentence. Garcia pleaded guilty to the charge in November 2023.
In a separate case, William James Thompson, III, 47, of Nampa, was sentenced to 63 months in federal prison for possession with intent to distribute methamphetamine. According to court records, in May 2023, Thompson fled on foot from a traffic stop in Caldwell. Officers ran after Thompson and during the ensuing foot pursuit, Thompson broke through two fences in a residential area and discarded a bag containing 79 grams of methamphetamine. Thompson admitted that he intended to distribute the methamphetamine. At the time of the offense, Thompson was on supervised release for a 2019 federal conviction for unlawful possession of a firearm.
“This is yet another display of collaboration and dedication to protecting and serving Idahoans,” said Caldwell Police Chief Rex Ingram. “We will not tolerate drug trafficking and we will use every ounce of teamwork to ensure our communities are safe.”
Chief U.S. District Judge David C. Nye also ordered Thompson to serve three years of supervised release following his prison sentence. Thompson pleaded guilty to possession with the intent to distribute methamphetamine in December 2023.
U.S. Attorney Hurwit commended the Nampa Police Department’s Special Investigation’s Unit and the Caldwell Police Department for their respective investigations. Special Assistant U.S. Attorney Kelsey Manweiler prosecuted the Garcia case and Assistant U.S. Attorney Erin Blackadar prosecuted the Thompson case.
The Garcia case was prosecuted by Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth.
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Tulare County Man Pleads Guilty to Falsely Marketing Products as Effective in Treating Medical Conditions Including COVID-19Read the Press Release
FRESNO, Calif. — Huu Tieu, 61, of Porterville, pleaded guilty Tuesday to three counts of introduction of misbranded drugs into interstate commerce, U.S. Attorney Phillip A. Talbert announced.
Tieu was the President and Chief Executive Officer of Golden Sunrise Pharmaceutical Inc. and Golden Sunrise Nutraceutical Inc. (collectively, “Golden Sunrise”). Golden Sunrise manufactured, marketed, and sold products that claimed to effectively treat a variety of medical conditions.
According to court documents, beginning on March 30, 2020, Tieu began selling a set of herbal mixtures he called the “Emergency D-Virus Plan of Care” as a COVID-19 treatment. The treatment consisted of a box containing various vials of Golden Sunrise drug products, including one called “Imunstem,” together with an “Emergency D-Virus Plan of Care” information sheet. Tieu mailed the products to various practitioners, public officials, and other individuals both inside and outside of California.
According to court documents, the labeling for the drugs, including the information sheet that accompanied the drugs, was false and misleading and stated that ImunStem and other Golden Sunrise products were “uniquely qualified to treat and modify the course of the virus epidemic in China and other countries.” Tieu falsely claimed the products had been the first dietary supplement in the United States to be approved as a prescription medicine by the U.S. Food and Drug Administration (FDA) to treat the COVID-19 virus. In fact, the drugs were not FDA approved, and no Golden Sunrise product had ever been approved by the FDA for any purpose.
This case is the product of an investigation by FDA Office of Criminal Investigations, the U.S. Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation with assistance from the Tulare County District Attorney’s Office. Assistant U.S. Attorneys Jeffrey A. Spivak and Emilia P.E. Morris are prosecuting the case.
Tieu is scheduled to be sentenced before U.S. Magistrate Judge Barbara A. McAuliffe on June 12, 2024. Tieu faces a maximum statutory penalty of one year in prison and a $100,000 fine on each of the three counts. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Three KC Men Charged with Illegal Firearms Trafficking, Straw Purchases Related to Investigation of Mass Shooting at Super Bowl RallyRead the Press Release
A video statement from U.S. Attorney Teresa Moore is available on the district's YouTube channel
This press release has been updated in accordance with Justice Department policy.
KANSAS CITY, Mo. – Three Kansas City, Mo., men have been charged in federal court for illegal firearms trafficking and straw purchases of firearms as a result of the investigation into the mass shooting at Union Station during the celebration of the Kansas City Chiefs Super Bowl victory on Feb. 14, 2024.
“These cases underscore the importance of enforcing federal firearms laws,” said U.S. Attorney Teresa Moore. “Stopping straw buyers and preventing illegal firearms trafficking is our first line of defense against gun violence. At least two of the firearms recovered from the scene of the mass shooting at Union Station were illegally purchased or trafficked. We work diligently with our law enforcement partners to keep firearms out of the hands of criminals by investigating and prosecuting those who illegally buy and sell dangerous weapons.”
“The Bipartisan Safer Communities Act has given ATF additional tools needed to go after straw purchasers and firearms traffickers who flood our streets with weapons that pose a threat to every single person in Kansas City,” said ATF Kansas City Field Division Special Agent in Charge Bernard Hansen. “These arrests serve as a notice to those who think they can illegally traffic guns into our communities or straw purchase firearms. The men and women of ATF will never waiver on our commitment to protect the public and to aggressively target firearms traffickers. The proliferation of illegal guns represents a grave danger to the public, but law enforcement is united and strong. I thank the U.S. Attorney’s Office and all our law enforcement partners for their diligent work and tireless dedication to our shared public safety mission.”
“While the events of February 14th will forever weigh heavy on our hearts, the effort of our federal partners and KCPD detectives is a testament to their service to Kansas City,” said Kansas City Police Chief Stacey Graves. “We will continue to hold those responsible for violence in our city accountable.”
One person was killed and more than 20 people were injured in the mass shooting at Union Station. According to court documents, 12 individuals brandished firearms and at least six individuals fired their weapons. The Kansas City, Mo., Police Department recovered several firearms, spent shell casings, and other items of evidentiary value from the scene.
Two Firearms Recovered from Scene of Mass Shooting
Two firearms recovered from the scene of the mass shooting are cited in two separate federal criminal complaints filed under seal in the U.S. District Court in Kansas City, Mo., on Monday, March 11. Those complaints were unsealed and made public today following the arrests of the defendants.
Fedo Antonia Manning, 22, was charged in a 12-count criminal complaint. Ronnel Dewayne Williams, Jr., 21, and Chaelyn Hendrick Groves, 19, were charged in a four-count federal criminal complaint.
One of the firearms recovered from the scene of the shooting was an Anderson Manufacturing AM-15 .223-caliber pistol. The loaded pistol was found along the wall with a backpack next to two AR-15-style firearms and backpacks. Because the pistol was in “fire” position and there were 26 live rounds in the magazine, which is capable of holding 30 rounds, it may have fired several rounds before it was discarded.
According to an affidavit filed in support of the federal criminal complaint, the AM-15 pistol was purchased by Manning from a federally licensed firearms dealer in Lee’s Summit, Mo., on Aug. 7, 2022. The affidavit alleges that Manning illegally trafficked dozens of firearms, including many Anderson Manufacturing AM-15 firearms.
The second firearm recovered from the scene of the mass shooting was a Stag Arms 300-caliber pistol. According to an affidavit filed in the second federal criminal complaint, the pistol was purchased by Williams during a gun show on Nov. 25, 2023. Williams allegedly purchased the firearm for Groves, who accompanied him to the gun show but was too young to legally purchase the firearm himself.
The federal criminal complaints do not make any allegations that Manning, Williams, or Groves were among the shooters at Union Station on Feb. 14, 2024. Rather, the federal charges involve the illegal straw purchases and trafficking of firearms.
Manning and Williams are alleged to have purchased firearm receivers, or frames, which house the firing mechanism and other internal parts of a firearm. The receiver can be loaded and fired, or built into a complete firearm by adding components that may not be regulated under federal law. By federal definition, a receiver is a firearm and is the only controlled component of a firearm.
USA v. Manning
Manning, who is not a licensed federal firearms dealer, allegedly purchased dozens of firearms. Fifteen of the firearms originally purchased by Manning were recovered by law enforcement officers in the possession of individuals other than Manning, including several individuals who were legally prohibited from possessing firearms.
The firearm recovered from the scene of the mass shooting at Union Station is one of seven firearms originally purchased by Manning that have been recovered during investigations of crimes. According to the affidavit, Manning purchased two Anderson Manufacturing AM-15 pistols from a federally licensed firearms dealer on Aug. 7, 2022. In addition to the firearm recovered at Union Station, the second firearm purchased by Manning that day was later recovered from a stolen vehicle during the investigation of an armed robbery. Firearms also were recovered during investigations into a murder in Columbia, Mo., and the armed robbery of a local convenience store. Three firearms originally purchased by Manning were recovered by law enforcement from individuals who were prohibited from legally possessing firearms.
Manning also allegedly was the straw purchaser of seven firearms that were later sold to a confidential informant during a separate federal criminal investigation. The confidential informant, who was known to be a felon and therefore prohibited from possessing firearms, purchased a total of 27 firearms from two of Manning’s family members and their co-conspirators, who have been indicted in a separate federal case. In addition to those seven firearms, says the affidavit, federal investigators traced Manning’s purchase of 40 firearms over a nine-month period, including 33 Anderson Manufacturing AM-15 firearms, all of which were purchased as receivers.
The federal criminal complaint charges Manning with one count of conspiracy to traffic firearms, one count of engaging in firearm sales without a license, and 10 counts of making a false statement on a federal form. In each of these 10 purchases, Manning represented that he was the actual buyer of the firearm, but in fact these firearms were transferred to other persons shortly after he purchased them.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
USA v. Williams, et al
The federal criminal complaint charges Williams and Groves together in one count of conspiracy to make false statements in the acquisition of firearms and in one count of aiding and abetting making false statements in the acquisition of firearms. Williams and Groves are each charged separately in one count each of making a false statement to a federal agent.
According to an affidavit filed in support of the federal criminal complaint, Williams and Groves attended a gun show on Nov. 25, 2023, looking for receivers to buy. Groves, who was under the age of 21 and therefore too young to legally purchase a firearm receiver, allegedly gave money to Williams. Williams allegedly purchased the Stag Arms receiver for Groves.
Groves told investigators he purchased a 300-blackout upper to complete the firearm at another gun show about a month later. Groves also claimed the Stag Arms firearm was stolen during a “shootout.” Rather than report the firearm stolen, Groves said he just went to a gun show with a different friend who bought him another one. Groves showed investigators a video on his cell phone that included the firearm. According to the affidavit, the cell phone video showed an AR pistol lying on a flat surface, then panned out to show five other handguns.
This case is being prosecuted by Assistant U.S. Attorney Jess Michaelsen. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The charges contained in these complaints are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Neighborhoods
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.
Three Indicted for Straw Purchase of Gun Allegedly Used in Raleigh Homicide on Poole RoadRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment last week charging three Raleigh residents with straw purchasing a firearm that was used in a homicide last month on Poole Road in Raleigh.
“The Bipartisan Safer Communities Act is the first major gun violence reduction bill passed in years and has quickly become a powerful crime-fighting tool for law enforcement,” said U.S. Attorney Michael Easley. “The gun purchased in this case was allegedly used in a homicide just two weeks later. Our Violent Crime Action Plan prioritizes prosecuting trigger pullers and straw buyers who buy weapons for those that shouldn’t have them.
“Not only are these individuals charged with conspiring to put guns in the hands of people not legally allowed to buy one, but sadly, someone lost their life as a result. The FBI and our law enforcement partners will continue to work tirelessly to end gun violence in our communities," said Robert M. DeWitt, the Special Agent in Charge of the Federal Bureau of Investigation in North Carolina.
According to charging documents, on January 20, 2024, at a gun show in Raleigh, Ever Arroyo Gasga, age 24, allegedly purchased two firearms for Anselmo Arroyo Gonzalez, age 49, and Jimmy Arroyo Maldonado, age 18, who were each legally prohibited from purchasing firearms themselves. Approximately two weeks later, on February 5, 2024, one of these guns, a Glock 23, .40 caliber pistol, was allegedly used by another individual to commit a homicide at 1308 Poole Road, Raleigh.
As alleged in the indictment, Gonzalez is prohibited from legally purchasing firearms because he is a Mexican citizen who does not have legal status in the United States. Gonzalez was previously deported from the United States to Mexico in November 2016. Maldonado is prohibited from legally purchasing firearms because he is under indictment by state authorities for felony offenses, including felony fleeing to elude arrest.
Each defendant faces charges of aiding and abetting, conspiracy, and straw purchasing firearms. Gasga, if convicted, faces a maximum penalty of 15 years in prison. Arroyo Gonzalez faces additional charges of illegal reentry and possession of a firearm by an alien illegally and unlawfully in the United States. If convicted, he faces maximum penalties totaling 32 years in prison and deportation from the United States. Maldonado faces additional charges of possession of a firearm by a person under felony indictment and possession with the intent to distribute cocaine. If convicted, he faces maximum penalties totaling 40 years in prison.
This case is being prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted, and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms. For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
This indictment is a result of the ongoing VCAP initiative which is collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement. The Federal Bureau of Investigation (FBI) and Raleigh Police Department (RPD) are investigating the case, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Department of Homeland Security (HSI), and Assistant U.S. Attorneys Sarah E. Nokes and Charles E. Loeser are prosecuting the case.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Three Georgians Sentenced for Roles in Americus Meth Trafficking RingRead the Press Release
ALBANY, Ga. – Three Southwest Georgia residents were sentenced this week for their criminal involvement in a methamphetamine trafficking ring distributing controlled substances in Americus, Georgia.
Kasie Lawarron Monson, 43, of Americus, was sentenced to serve 120 months in prison to be followed by three years of supervised release on March 12 after he previously pleaded guilty to one count of distribution of cocaine base. Co-defendant Eran Devon Sims, 30, of Americus, was sentenced to serve 84 months in prison to be followed by three years of supervised release on March 12 after he previously pleaded guilty to one count of distribution of methamphetamine. Co-defendant Briana Latrice Lawson, 26, of Americus, was sentenced to serve five years of probation today after she pleaded guilty to one count of aiding and abetting the use of a communication facility in furtherance of a drug trafficking crime.
The following co-defendants pleaded guilty and have been sentenced:
Chasmon Deon Smith, 36, of Americus, was sentenced to serve 120 months in prison on Oct. 20, 2023, after he pleaded guilty to one count of distribution of cocaine base;
Randy Allen Cole, 31, of Americus, was sentenced to serve 60 months in prison on Oct. 20, 2023, after he pleaded guilty to one count of distribution of methamphetamine; and
Logan James Tookes, 35, of Americus, was sentenced to serve 18 months in prison after he pleaded guilty to one count of distribution of methamphetamine.
U.S. District Judge Leslie Abrams Gardner handed down the sentences. The defendants are not eligible for parole.
“This case is a strong example of how federal, state and local law enforcement agencies are collaborating in Americus and similar communities across the Middle District of Georgia to prevent the distribution of dangerous illegal substances like methamphetamine, which harm people and exacerbate other criminal activity,” said U.S. Attorney Peter D. Leary. “Our office will continue to support their efforts by working with them to hold repeat criminals accountable for their crimes.”
“Drug traffickers drive addiction and destroy communities,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “DEA efforts ensure these criminals will be removed from our streets.”
“The GBI takes drug investigations very seriously and understands the significant negative effects that dangerous drugs like methamphetamine and cocaine have on Georgia communities,” said GBI Director Chris Hosey. “We are committed to working with our local, state and federal partners to combat drug distribution and keep our communities safe.”
According to court documents, DEA and GBI agents initiated an undercover drug distribution investigation in Americus beginning in 2021. Between Oct. 2021 and Jan. 2022, an undercover GBI agent conducted numerous purchases of cocaine base and methamphetamine through Sims from his various sources of supply, including Monson, Cole and Tookes. In total, law enforcement purchased approximately 367 grams of methamphetamine and 28 grams of cocaine base during the conspiracy investigation. A search warrant was executed at Monson’s residence on Brookdale Drive in Americus on Jan. 25, 2022. Inside a closet in Monson’s bedroom, agents found a bag containing 11 individually packaged plastic baggies containing methamphetamine, along with crack cocaine and powder cocaine. Agents seized 422 grams of actual methamphetamine and distributable quantities of cocaine and cocaine base.
Five defendants have criminal histories in the community: Smith was sentenced as a career offender due to his prior convictions for the sale of cocaine, conspiracy to sell cocaine and obstruction of a law enforcement officer; Monson has a lengthy criminal history in the region, including prior convictions for possessing controlled substances, theft by receiving stolen property, obstruction of law enforcement officers and battery; Sims has prior convictions, including theft by taking and burglary; Cole has prior convictions for entering an automobile and obstruction of law enforcement officers; and Tookes has a prior conviction for obstruction of law enforcement officers.
This case was investigated by DEA and GBI.
Assistant U.S. Attorney Matthew Redavid prosecuted the case for the Government.
Three Fayetteville Men Charged in Conspiracy Involving Checks Stolen from Wake County Collection BoxesRead the Press Release
RALEIGH, N.C. – A federal grand jury returned a 13-count indictment charging three men for their alleged role in a conspiracy and scheme involving the theft of checks from United States Postal Service collection boxes located in Wake County. According to the allegations in the indictment, one or more co-conspirators stole checks from the collection boxes, after which the checks were altered to change the payee information to the name of individuals enlisted to provide access to their bank accounts for use in the scheme. The co-conspirators allegedly then deposited the fraudulent checks into the bank accounts and withdrew, and attempted to withdraw, the funds from ATMs.
“We’ve made our partnership with the U.S. Postal Inspection Service a cornerstone of our antifraud strategy and are seeking additional postal resources to grow even stronger in this critical area,” said U.S. Attorney Michael Easley. “We are prioritizing cases where anyone tries to undermine the integrity of our federal mail system. Anyone sending checks through the mail should notify the bank immediately of any unauthorized activity.”
“This case is yet another example of the unending dedication of the U.S. Postal Inspection Service and its law enforcement partners to halt the devastating effects of fraud. Those who steal the mail and engage in this type of criminal activity must learn they cannot escape detection and will be brought to justice,” said Inspector in Charge Tommy D. Coke of the Atlanta Division, which oversees Raleigh.
The indictment charges Darrell Alan Thompson, Antonio Rasheed Hair, and Michael James Pasea with one count of conspiracy to commit bank fraud. Thompson, Hair, and Pasea are also charged with multiple counts of bank fraud and aiding and abetting. The defendants face up to 30 years’ imprisonment for each count of conviction on these charges. Additionally, Thompson is charged with theft of mail and possession of a firearm and ammunition by a felon. If convicted, Thompson faces up to 5 years’ imprisonment for the theft charge and up to 15 years’ imprisonment for the gun charge.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The U.S. Postal Inspection Service and the Raleigh Police Department are investigating the case and Assistant U.S. Attorney Adam Hulbig is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-CR-00042-M-RN
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Texas Man Sentenced to Ten Years' Imprisonment for Cocaine Trafficking in Lackawanna CountyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Luis Gonzalez, age 28, of El Paso, Texas, was sentenced on March 12, 2024, by U.S. District Court Judge Robert D. Mariani, to ten years’ imprisonment on the charge of possession with intent to distribute more than five kilograms of cocaine.
According to United States Attorney Gerard M. Karam, Gonzalez previously pleaded guilty and admitted to possessing between 15 kilograms and 50 kilograms of cocaine for further distribution in the Lackawanna County area in September 2022. Gonzalez and another individual, Jose Torres, age 27, also of El Paso, Texas, were indicted by a grand jury in Scranton for cocaine trafficking in October 2022. The charges stem from an incident on September 29, 2022, in which members of the Pennsylvania State Police made a traffic stop of a vehicle in Lackawanna County. Gonzalez and Torres were the occupants of the vehicle. A subsequent search of the vehicle resulted in the seizure of sixteen individually wrapped kilograms of cocaine, having a street-value of approximately $500,000.
Co-defendant Jose Torres is still awaiting sentencing.
The investigation was conducted by the United States Drug Enforcement Administration (DEA), the Pennsylvania State Police and the Scranton Police Department. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
# # #St. Louis County Man Sentenced for Gun CrimeRead the Press Release
ST. LOUIS– U.S. District Judge Matthew T. Schelp on Wednesday sentenced a felon caught with a gun to 55 months in prison.
Police searched the St. Louis County, Missouri apartment of Martez D. Lindsey on April 25, 2023, while investigating a fatal hit-and-run. Detectives found a stolen Taurus G3 pistol, .53 grams of cocaine base, .33 grams of methamphetamine, 1.14 grams of marijuana, a digital scale and $1,370 in cash in Lindsey’s bedroom. Lindsey, 31, admitted as part of his plea agreement in December that he knew he’d been convicted of multiple felonies and could not possess a firearm.
After his arrest on the charge of being a felon in possession of a firearm, Lindsey contacted an ex-girlfriend who was a key witness in the hit-and-run investigation and pressured her to claim she was tricked or made up a story because she was mad at him. Lindsey believed her statement was the “only proof they got,” his plea agreement says. Lindsey previously had thrown a brick through the rear window of a vehicle she owned and tossed in a firework that destroyed the front window.
Judge Schelp ordered the federal prison sentence to run concurrent to any prison time Lindsey receives for a pending case in St. Louis Circuit Court, where he faces charges of leaving the scene of an accident resulting in death and unlawful possession of a firearm.
The St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Zachary Bluestone prosecuted the case.
Sioux Falls Man Sentenced to Federal Prison for Involvement in Meth ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on March 11, 2024.
Bradmon Alexander, 36, was sentenced to 11 years and eight months in federal prison, followed by four years of supervised release. He was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Alexander was indicted, along with his co-conspirator Mackenzie Zimmerman, for Conspiracy to Distribute Methamphetamine and Conspiracy to Distribute Fentanyl by a federal grand jury in June of 2023. Alexander pleaded guilty to Conspiracy to Distribute Methamphetamine on December 12, 2023, and Zimmerman pleaded guilty to Conspiracy to Distribute Methamphetamine on December 29, 2023. Zimmerman is set to be sentenced on March 25, 2024.
Alexander and Zimmerman obtained methamphetamine from co-conspirators and then distributed it to others in South Dakota. On January 19, 2023, law enforcement stopped a vehicle that Alexander and Zimmerman were in and executed a search warrant. The officers searched the vehicle and found 26.7 grams of methamphetamine packaged for sale, a digital scale, approximately 13.82 grams of pills suspected to contain fentanyl, and $1,428 in cash. In total, Alexander was responsible for personally distributing approximately two pounds of methamphetamine and hundreds of fentanyl pills.
This case was investigated by the Drug Enforcement Administration with the assistance of the Sioux Falls Police Department and the Minnehaha County Sheriff’s Office. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Alexander was immediately remanded to the custody of the U.S. Marshals Service.
Second Texas Man Sentenced to Ten Years' Imprisonment for Cocaine Trafficking in Lackawanna CountyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose Torres, age 28, of El Paso, Texas, was sentenced on March 12, 2024, by U.S. District Court Judge Robert D. Mariani, to ten years’ imprisonment on the charge of possession with intent to distribute more than five kilograms of cocaine.
According to United States Attorney Gerard M. Karam, Torres previously pleaded guilty and admitted to possessing between 15 kilograms and 50 kilograms of cocaine for further distribution in the Lackawanna County area in September 2022. Torres and another individual, Luis Gonzalez, age 28, also of El Paso, Texas, were indicted by a grand jury in Scranton for cocaine trafficking in October 2022. The charges stem from an incident on September 29, 2022, in which members of the Pennsylvania State Police made a traffic stop of a vehicle in Lackawanna County. Torres and Gonzalez were the occupants of the vehicle. A subsequent search of the vehicle resulted in the seizure of sixteen individually wrapped kilograms of cocaine, having a street-value of approximately $500,000.
Co-defendant Luis Gonzalez was previously sentenced by Judge Mariani to serve ten years’ imprisonment.
The investigation was conducted by the United States Drug Enforcement Administration (DEA), the Pennsylvania State Police and the Scranton Police Department. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
# # #Seattle woman sentenced to one year of home confinement for defrauding COVID assistance programRead the Press Release
The sentence in this case was updated on April 3, 2024
Seattle – A 62-year-old Seattle woman was sentenced today in U.S. District Court in Seattle to home confinement with location monitoring as a condition of a 3-year term of probation for her scheme to steal nearly half a million dollars in COVID 19 benefits, announced U.S. Attorney Tessa M. Gorman. Danni Walker was indicted on six counts of wire fraud in July 2022. She pleaded guilty to one count of wire fraud in August 2023. Prosecutors sought a 21-month custodial sentence, while the United States Probation Office recommended a custodial sentence of 12 months and 1 day. At today’s sentencing hearing U.S. District Judge Lauren King said, “this is a very serious offense” and noted the defendant’s use of pandemic relief funds for “lavish expenditures” that she “flaunted on social media.”
“This defendant took resources intended to help businesses struggling to stay afloat in the pandemic, and used them for a high-end car, luxury travel and shopping sprees and unsuccessful trading in cryptocurrency,” said U.S. Attorney Gorman. “Some businesses that needed loans did not get them, because Ms. Walker and others like her committed fraud on government programs.”
According to records filed in the case, between April 2020 and March 2021, Walker used false information to apply for and obtain $473,082 in Paycheck Protection Program (PPP) loans through the Small Business Administration. Walker submitted the applications on behalf of three different companies, only one of which was in operation, and none of which had the employees she claimed in her applications. Instead of using the PPP money for payroll and other legitimate business expenses, as intended by the program, Walker used it, among other things, to purchase a Jaguar coup; spent $34,000 on a luxury vacation to New York – including a Louis Vuitton shopping spree -; and invested unsuccessfully in cryptocurrency. She also gave large cash gifts to family and friends.
Walker also attempted to obtain two additional PPP loans through the Small Business Administration (SBA) totaling approximately $165,000. However, SBA caught the fraud and those loans were declined.
In asking for a 21-month prison sentence, prosecutors highlighted that Walker’s theft of tax dollars meant others did not get the financial support they needed. “This was a calculated and sophisticated offense…. Over a period of approximately 11 months, through six fraudulent PPP loan applications, Walker stole close to a half million dollars in pandemic relief funds. These funds could and should have been provided to businesses that actually qualified for them so those business could pay their employees and other approved business expenses– i.e., to stay afloat during a historic crisis,” Assistant United States Attorney Michelle Jensen wrote in her sentencing memo.
The case was investigated by the Small Business Administration Office of Inspector General (SBA-OIG) and the FBI.
The case was prosecuted by Assistant United States Attorneys Michelle Jensen and Sok Jiang.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Rhode Island Man Pleads Guilty to Fentanyl ConspiracyRead the Press Release
BOSTON – A Providence, R.I. man pleaded guilty yesterday to his role in a drug trafficking organization (DTO) that distributed fentanyl throughout Southeastern Massachusetts and Rhode Island.
Rafael Cesar Cabreja Jimenez, 28, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl and one count of possession with intent to distribute fentanyl. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for June 4, 2024. Cabreja Jimenez was one of 10 individuals indicted by a federal grand jury in August 2022 in connection with the conspiracy.
In March 2021, an investigation began into a DTO operating in Southeastern Massachusetts and Rhode Island led by Estarlin Ortiz-Alcantara. The investigation identified Cabreja Jimenez as a distributor for the DTO who regularly distributed multi-kilograms of fentanyl from a base of operations at a stash house in Fall River.
During a search of the stash house in July 2022, Cabreja Jimenez was found located inside the apartment along with more than 12 kilograms of fentanyl stored in various ceiling panels, blenders, a hydraulic press and baggies.
The charges of conspiracy to distribute and to possess with intent to distribute fentanyl and possession with intent to distribute fentanyl each provide for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. 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.
Cabreja Jimenez is the ninth defendant to plead guilty in the case. Ortiz-Alcantara pleaded guilty in December 2023 and is scheduled to be sentenced on July 9, 2024.
Acting United States Attorney Joshua S. Levy, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; New Bedford Police Chief Paul Oliveira; and Fairhaven Police Chief Michael J. Myers made the announcement today. Special assistance was provided by the Massachusetts State Police; Homeland Security Investigations; Bristol County Sherriff’s Office; and Fall River, Taunton, Attleboro, Scituate, Yarmouth, Providence (R.I.) and West Warwick (R.I.) Police Departments. Assistant U.S. Attorney John T. Mulcahy of the Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.