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13 March 2024
Randolph Man Sentenced to More Than Four Years in Prison for Role in Cocaine Trafficking ConspiracyRead the Press Release
BOSTON – A Randolph man was sentenced yesterday in federal court in Boston for his role in a drug trafficking organization (DTO) that shipped dozens of parcels containing kilograms of cocaine from Puerto Rico to various addresses throughout Eastern Massachusetts and Rhode Island.
Patrick Rinvil, 37, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 57 months in prison and three years of supervised release. In December 2023, Rinvil pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine.
Rinvil was identified as a drug courier for a DTO that trafficked kilograms cocaine from Puerto Rico through the mail. The cocaine inside these packages was typically hidden inside innocuous consumer goods, such as air fryers. The packages were addressed to various addresses in Massachusetts and Rhode Island. Rinvil and others were responsible for picking up the packages and transporting the cocaine to other various stash locations in Massachusetts. In May 2021, a search of Rinvil’s apartment, which was also being used as a one of the stash locations, resulted in the seizure of 12 kilograms of cocaine.
Acting United States Attorney Joshua S. Levy; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Boston Police Commissioner Michael Cox made the announcement today. The Drug Enforcement Administration, New England Field Division and Homeland Security Investigations in Boston provided valuable assistance with the investigation. Assistant U.S. Attorneys Philip C. Cheng and James E. Arnold of the Criminal Division prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pittsburgh Resident Indicted on Drug and Firearms ViolationsRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug trafficking and firearms laws, United States Attorney Eric G. Olshan announced today.
The six-count Superseding Indictment named Lester Burrell Jackson III, 32, as the sole defendant in this case.
According to the Superseding Indictment, Jackson distributed multiple quantities of methamphetamine on or about November 14, 2023; December 7, 2023; and January 2, 2024. Additionally, Jackson possessed with intent to distribute a quantity of fentanyl, possessed a firearm and ammunition after being convicted of a felony, and carried a firearm during and in relation to a drug trafficking crime on or about January 27, 2024. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum possible sentence of not less than 15 years and up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney DeMarr W. Moulton is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Superseding Indictment in this 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.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmaceutical Company Settles Allegations it Received Improper Paycheck Protection Program LoanRead the Press Release
NEWARK, N.J. – A pharmaceutical manufacturer based in Puerto Rico entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by taking a loan from the Paycheck Protection Program (PPP) to which the company was not entitled, U.S. Attorney Philip Sellinger announced today.
According to the allegations in the complaint and the contentions of the United States in the settlement agreement:
On March 4, 2021, Caribe Holdings Cayman Co. Ltd. (Caribe) applied for a PPP loan totaling $1.2 million. The company certified that it was eligible to receive a PPP loan and specifically that it was not an “an entity created in or organized under the laws of the People’s Republic of China” and that no such entity owned or held 20 percent or more of the economic interest in Caribe. That certification was not true at the time Caribe submitted the application and Caribe would not have qualified for the PPP loan if it answered the question accurately. After receiving the PPP loan, Caribe sought and received forgiveness of the total amount of the loan.
U.S. Attorney Philip R. Sellinger“The Paycheck Protection Program was just one of several efforts by the United States to help companies and people through the COVID-19 pandemic. Unfortunately, too many entities saw these programs as opportunities to line their pockets with money to which they weren’t entitled. Our office is always on the lookout to find anyone who has tried to take advantage of programs like this, and ensure that they are held accountable for taking taxpayer money that they weren’t entitled to.”
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses.
Caribe fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement agreement, Caribe has paid the United States $1.99 million. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $199,103 as his share in the recovery.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The qui tam case is captioned United States ex rel. GNGH2, Inc. v. PuraCap International LLC, et al., Civil Action No. 23-2068 (D.N.J.).
caribe.settlement.pdfOrlando Man Sentenced to Federal Prison for Preparing and Filing False Tax ReturnsRead the Press Release
Orlando, Florida – U.S. District Judge Carlos Mendoza has sentenced Marc Arthur Eliassaint to 21 months in federal prison for filing false tax returns and aiding and assisting in the preparation of false tax returns. Eliassaint entered a guilty plea on November 16, 2023.
According to court documents, Eliassaint prepared and filed false tax returns for himself for tax years 2016 through 2019 by claiming false fuel tax credits, itemized deductions, business losses, and misstating his income and federal income tax withholding amounts. Eliassaint also owned and operated a tax preparation business named 360 Tax Services, LLC, and filed 35 false tax returns on behalf of other individuals for tax years 2016 through 2020. These tax returns similarly claimed false fuel tax credits, itemized deductions, business losses and profits, and misstated income and federal income tax withholding amounts, which fraudulently inflated the amounts of the individuals’ tax refunds.
“Today’s sentencing highlights the determination IRS-CI Special Agents have when they pursue tax preparers who exploit the tax system,” said IRS-CI Acting Special Agent in Charge Lani Rosado-Espinal. “The dishonesty and complete disregard exhibited by individuals like Eliassaint not only undermines the trust in our tax system but also violates the expectations that all Americans are supposed to adhere to. IRS-CI is leaving no stone unturned in our efforts to combat fraudulent return preparers and will persist in safeguarding taxpayer funds.”
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Diane Hu, Jennifer Harrington, and Ranganath Manthripragada.
Online Cryptocurrency Exchanger Pleads Guilty to Operating Unlicensed Money Transmitting BusinessRead the Press Release
Earlier today, in federal court in Central Islip, David Scotese pleaded guilty to operating an unlicensed money transmitting business. As part of his plea agreement, Scotese agreed to forfeit cryptocurrency, cash, and precious metals worth in excess of $1.3 million at current valuation. The proceeding was held before United States District Judge Joan M. Azrack. When sentenced, Scotese faces up to five years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Erin Keegan, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI New York), Edward A. Caban, Commissioner, New York City Police Department (NYPD), and Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service (USPIS), announced the guilty plea.
“With his guilty plea today, Scotese is taking responsibility for operating a money exchanging and transmitting business in defiance of the critical legal requirements that are intended to secure our financial system from corruption by drug traffickers and other criminals,” stated United States Attorney Peace. “This prosecution should serve as a warning to other ask-no-questions, black-market money transmitting businesses that FinCEN registration and regulatory compliance are not mere technicalities, but a necessary part of our collective efforts against crime, and that we will prosecute unlicensed money transmitters who flout these rules.”
“While operating an unlicensed money transmitting business, Scotese moved money for his clients with no questions asked. Without ‘knowing the customer,’ crypto was bought and sold through his exchange with no regard of whether or not the initial funds were legitimate. This business practice can set a dangerous precedent, and with today’s guilty plea, Scotese will soon learn the consequences of his actions,” stated IRS-CI Special Agent-in-Charge Fattorusso.
“David Scotese defied vital financial regulations in posing as a legitimate cryptocurrency dealer despite having received no such accreditation. Such legal requirements were established to not only ensure fairness, but also oversight in what is undoubtedly a new and emerging market,” said HSI New York Acting Special Agent in Charge Erin Keegan. “I thank HSI New York’s El Dorado Task Force Darkweb and Cryptocurrency investigators, HSI San Diego, and HSI Riverside, in addition to our remarkable law enforcement partners, for ensuring the public remains protected from those attempting to skirt the rules at their expense.”
“Today’s admission of guilt makes abundantly clear that individuals who facilitate the illegal transfer of money will be held accountable; the security of our banking system depends on it,” stated NYPD Commissioner Caban. “The NYPD will continue to work hand in hand with all of our law enforcement partners to identify and stop these criminals. Our message is clear: Using new technology to put profits over compliance is not a path to riches; it is a path to federal prosecution.”
“At the core of our mission as Postal Inspectors is our duty to ensure a secure mail system for the American public. Scotese allegedly used the U.S. Mail to violate federal banking regulations by running an illegal cash for crypto scheme. His plea today should serve as a clear example to anyone who will attempt to evade the law and use the mail to commit a crime. Postal Inspectors and our law enforcement partners will see to it that you are prosecuted to the fullest extent of the law,” said Daniel B. Brubaker, Postal Inspector in Charge of the New York Division.
As alleged in public filings and statements made in court, since at least 2016, Scotese worked and advertised himself online as a cryptocurrency exchanger and transmitter but never registered with the Department of the Treasury, Financial Crimes Enforcement Network (FinCEN) or obtained a state license, as required by law in order to ensure effective financial reporting and anti-money laundering compliance. At the time of his arrest in California, Scotese had over $130,000 in cash in his home and vehicle, as well as hundreds of thousands of dollars in coins and precious metals obtained through the operation of his unlicensed money transmitting business. Scotese has agreed to forfeit these assets in addition to hundreds of thousands of dollars of various cryptocurrency assets.
The investigation was conducted in coordination with HSI San Diego’s Costa Pacifico Money Laundering Task Force and HSI Riverside’s Inland Commercial Enforcement and Financial Interdiction Team.
Assistant United States Attorney Robert M. Pollack is in charge of the prosecution, and Assistant United States Attorney Tanisha R. Payne of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
DAVID SCOTESE
Age: 54
Murietta, CaliforniaE.D.N.Y. Docket No. 23-CR-231 (JMA)
Ohio and Florida Residents Each Sentenced to Five Years in Prison for Cocaine Distribution ViolationsRead the Press Release
PITTSBURGH, Pa. – Co-conspirators from Ohio and Florida each have been sentenced in federal court to 60 months of imprisonment, to be followed by four years of supervised release, on their convictions for conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, United States Attorney Eric G. Olshan announced today.
United States District Judge J. Nicholas Ranjan imposed the sentences on Luis Mattei-Albizu, 42, of Columbus, Ohio, and Jossian Ayala-Ruberte, 43, of Kissimmee, Florida.
According to information presented to the Court, the Drug Enforcement Administration (DEA) began investigating a cocaine and fentanyl trafficking organization that operated throughout the United States, including Florida, Ohio, Pennsylvania, and Puerto Rico. Beginning in December 2019 and continuing through August 2020, the DEA received authorization to conduct a Title III wiretap investigation into the organization, during which both Mattei-Albizu and Ayala-Ruberte were intercepted orchestrating and directing the movement of cocaine through the mail for redistribution. In addition to the intercepted communications, agents seized cocaine, heroin, fentanyl, methamphetamine, ecstasy, marijuana, firearms, and bulk United States currency from members of the organization.
In imposing the sentences, Judge Ranjan emphasized the severity of the offenses.
Assistant United States Attorney Mark V. Gurzo prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration in Pittsburgh, Columbus, and Harrisburg, Pennsylvania; Homeland Security Investigations in Pittsburgh and Orlando, Florida; Internal Revenue Service-Criminal Investigations; United States Postal Service in Columbus; Pennsylvania Office of Attorney General; Lawrence County Drug Task Force–Special Investigations Unit; and New Castle Police Department for the investigation leading to the successful prosecutions of Mattei-Albizu and Ayala-Ruberte.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Michigan Man Charged with Federal Hate Crime Offenses for Defacing Predominantly Black Church and Public Park BathroomRead the Press Release
DETROIT – David Bluer, 33, of Warren, Michigan, was charged today in connection with spray-painting swastikas and other graffiti on a church in Roseville, Michigan, and with spray-painting similarly racist graffiti on a public park bathroom in Warren.
According to the charging documents, in October 2021, Bluer spray-painted swastikas, the word “die” and other graffiti on the Roseville church, because of the race and color of individuals associated with the church. As specified in the charging documents, the Roseville church has a Black pastor and serves a predominantly Black congregation. In addition, Bluer spray-painted swastikas, a racist slur and symbols and other graffiti on the public bathroom of Trombly Park, in Warren. The racist graffiti included the statement “DaviD KiLLS Ni**ERS.” Allegedly, Bluer acted because of the race and color of Black people who used the park, and because Black people were and had been enjoying the park.
Bluer was charged with one count of damaging a religious property and one count of interfering with federally protected activities. Bluer faces a maximum penalty of one year in prison for each misdemeanor charge.
United States Attorney for the Eastern District of Michigan Dawn N. Ison, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, and Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office made the announcement.
The FBI Detroit Field Office investigated the case.
Assistant U.S. Attorney Frances Carlson for the Eastern District of Michigan and Trial Attorney Erin Monju of the Justice Department’s Civil Rights Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law
Member of Tulalip Tribes sentenced to intermittent custody for drunk driving crash at gravel pit that killed passengerRead the Press Release
Seattle – A 40-year-old Snohomish County man who is an enrolled member of the Tulalip Tribes was sentenced today in U.S. District Court in Seattle to three years of probation, with intermittent confinement (3 days a week) for the first year of probation for involuntary manslaughter in connection with the February 2, 2020, crash that killed the sole passenger in his truck, announced U.S. Attorney Tessa M. Gorman. Danny Lee Simpson, Jr. pleaded guilty in October 2023. Prosecutors sought an 18-month custodial sentence, while the United States Probation Office recommended a 28-month custodial sentence.
According to records in the case, Simpson, his wife, and a mutual acquaintance had been drinking at a bar in Stanwood, Washington on February 1, 2020. After midnight, Simpson drove his truck, with the acquaintance as his sole passenger, to a gravel pit owned by his parents. Simpson had recently modified his truck, so it was suitable for off road use. Simpson had failed to check the braking system on the truck.
The sand and gravel pit was poorly lit and had a sheer 40-foot cliff face. Simpson knew about the cliff. The truck overheated and stalled. At about 1:15 in the morning, Simpson backed the truck off the sheer cliff. The truck landed upside down at the bottom of the cliff. The crash killed Simpson’s passenger – another member of the Tulalip Tribes. In his plea agreement, Simpson admitted he knew or could have reasonably foreseen that it was dangerous to drive under the influence of alcohol near the cliff face in a dark, wet, and poorly lit gravel pit.
Writing to the court, prosecutors highlighted the devastating impact on the victim’s family. “Simpson ended the life of a man who will never be able to play catch with his son, go to activities at his son’s school, or watch his son grow into manhood. Simpson selfishly took all this away from the victim, his son, and their family.”
The victim’s mother spoke at length at the sentencing hearing about the devastating loss that she, her family and the community have suffered because of Simpson’s actions. The victim’s father submitted a victim impact statement saying in part, “As his father, the pain I now endure is constant and paralyzing. My heart hurts, not only for myself, but for my grandson who will never know how much his father loved him.”
Simpson was ordered to pay restitution in an amount to be determined to the victim’s family.
The case was investigated by the FBI and the Tulalip Police Department.
The case is being prosecuted by Assistant United States Attorneys J. Tate London and Jocelyn Cooney. Mr. London and Ms. Cooney serve as Tribal Liaisons for the U.S. Attorney’s Office, Western District of Washington.
McAlester Resident Pleads Guilty to Bank FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bradley Scott Sutterfield, age 43, of McAlester, Oklahoma, entered a guilty plea to an Information charging him with one count of Bank Fraud.
The Information alleged that on March 28, 2023, Sutterfield knowingly executed a scheme to defraud The Bank N.A., a federally insured financial institution. According to investigators, Sutterfield’s scheme involved submitting counterfeit savings bonds to the bank teller in exchange for United States currency.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Kara Traster represented the United States.
Man Sentenced to 27 Years in Prison for Shooting Federal Agents in ChicagoRead the Press Release
CHICAGO — A man has been sentenced to 27 years in prison for shooting two federal agents and a task force officer who were conducting a covert investigation in Chicago.
EUGENE MCLAURIN, 31, of Chicago, pleaded guilty last year to three counts of assaulting a federal officer and two counts of using a firearm during a crime of violence. U.S. District Judge Manish S. Shah imposed the sentence during a hearing Wednesday in federal court in Chicago.
The shootings occurred on the morning of July 7, 2021, when two agents from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and an ATF Task Force officer were driving in an unmarked law enforcement vehicle while conducting a covert investigation on the South Side of Chicago. McLaurin admitted in a plea agreement that he mistakenly suspected the officers were members of an opposing gang. After following the officers’ vehicle, McLaurin pulled alongside it as the vehicle reached an on-ramp to the I-57 Expressway and fired several shots at the officers. The two agents and task force officer were wounded and suffered serious injuries.
Shortly after the shooting, McLaurin disposed of his handgun in a sewer drain and hid the key to his vehicle in the basement of his residence in order to conceal evidence of his involvement in the shootings.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Kristen de Tineo, Assistant Director of ATF, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of ATF, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Illinois State Police. The government was represented by Assistant U.S. Attorneys Jared Jodrey, Jasmina Vajzovic, and Elizabeth Pozolo.
“Through the violence of Eugene McLaurin, three dedicated law enforcement officers were seriously injured while serving their community,” said Acting U.S. Attorney Pasqual. “The bravery and courage shown by the injured officers command our utmost respect. Our office will continue to ensure that assaults on law enforcement will be met with serious punishment.”
“The men and women of ATF and its Task Forces have a noble mission to protect the public from violent crime,” ATF Assistant Director de Tineo said in her statement to the Court at sentencing. “Etched just inside the entrance of ATF Headquarters is a quote that states, ‘Loyalty, protection, perseverance, and partnership in defense of justice.’ That quote epitomizes the Chicago Field Division.”
“On behalf of the men and women of ATF, we are relieved that this defendant will serve 27 years in federal prison, protecting the community from further violence,” said ATF Special Agent-in-Charge Amon. “As noted in today’s sentencing hearing, the victims of this senseless crime, law enforcement agents and officers, dedicate their lives to protecting our community. We will not tolerate firearm violence directed at our community or our colleagues and will continue to stand shoulder to shoulder with the Chicago Police Department to ensure a tragedy such as this one never happens again.”
Mobile Man Sentenced to 5 Years in Prison for Conspiring to Distribute FentanylRead the Press Release
MOBILE, AL – A Mobile man was sentenced to 60 months in prison for conspiring to distribute fentanyl.
According to court documents, McCants, 37, admitted that between August 2021 and February 2022, he conspired with other people to distribute hundreds of fentanyl pills. On several occasions, narcotics agents used confidential informants to conduct controlled purchases of fentanyl pills from McCants. In February 2022, federal agents executed a search warrant at McCants’s apartment, seizing, among other things, fentanyl pills, cocaine, a firearm, and ammunition.
In addition to the 60-month prison term, United States District Judge Terry F. Moorer ordered McCants to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge Moorer ordered McCants to pay $100 in special assessments.The Drug Enforcement Administration and the Mobile Police Department investigated the case.
Assistant U.S. Attorney Justin D. Kopf prosecuted the case on behalf of the United States.
Mobile Man on Federal Supervision Sentenced to over 7 Years in Prison for Illegally Possessing a FirearmRead the Press Release
MOBILE, AL – Vincent Cole, 35, of Mobile, was sentenced to prison for being a felon in possession of a firearm while on supervision for a previous federal conviction for carjacking and possession of a firearm during a crime of violence.
According to court documents, on March 10, 2023, Cole was arrested by Mobile Police Department (MPD) following a traffic stop and high-speed chase through a residential area in Mobile. Cole initially stopped his car and spoke to MPD officers. While speaking to the MPD officers, Cole sped off at a high speed. MPD officers returned to their police cruiser and pursued him. Cole lost control of his vehicle and slid off the road just over a quarter of a mile away from the initial traffic stop. Cole climbed out of his car and was quickly apprehended. MPD officers found a loaded Glock Model 19 firearm inside the glovebox of Cole’s car. Cole admitted that he possessed the firearm found in the glovebox of his car.
Cole was indicted for being a felon in possession of a firearm and pled guilty to the charge. United States District Court Judge Terry F. Moorer sentenced Cole to 64 months in prison followed by a 3-year term of supervised release for illegally possessing the firearm.
Because Cole was on federal supervision when he illegally possessed a firearm, Judge Moorer found that Cole violated the conditions of his supervised release term he was serving for his prior felony convictions. Cole was sentenced to 24 months in prison for his new criminal conduct while on supervision, to run consecutive to his 64-month sentence.
U.S. Attorney Sean Costello of the Southern District of Alabama made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile Police Department investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Assistant U.S. Attorney Justin D. Kopf prosecuted the case on behalf of the United States.
Luzerne County Man Indicted on Drug Trafficking ChargesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Benjamin Woytas, age 34, of Wilkes-Barre Township, Pennsylvania, was indicted by a federal grand jury on drug trafficking charges.
According to United States Attorney Gerard M. Karam, the indictment alleges that in August 2023, Woytas distributed methamphetamine on multiple occasions in Luzerne County.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Luzerne County Drug Task Force. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for this offense is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #Lansing Man Sentenced for Illegal Gun PossessionRead the Press Release
Chuncey Jabron Martin Sentenced to 92 Months For Being a Felon in Possession of a Firearm
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Chuncey Jabron Martin, 36, of Lansing, was sentenced to 92 months in prison for being a felon in possession of a firearm. The sentencing hearing occurred before U.S. District Judge Robert Jonker in Grand Rapids Monday.
“Gun violence is an epidemic in Michigan and across the country,” said U.S. Attorney Mark Totten. “My office is committed to working with our law enforcement partners to address gun violence and hold accountable those who inflict immense trauma on our communities. As we did here, we will also continue to identify opportunities to prosecute gun offenders with a record of domestic and intimate-partner violence.”
Martin was arrested by the Lansing Police Department when a woman called 911 to report that she was being assaulted. After the phone became disconnected, police went to the scene and found an injured woman and Martin. Martin ran into a nearby apartment building and was eventually arrested. He had the woman’s gun in his possession, which was a violation of federal law because he had many prior felony convictions on his record. Because of Martin’s long violent record, he was referred to the Bureau of Alcohol, Tobacco, Firearms and Explosives for federal prosecution.
On August 30, 2023, Martin was indicted for being a felon in possession of a firearm, and he pled guilty to the offense on October 24, 2023. At the sentencing hearing, the prosecution requested a lengthy jail term because of Marin’s 29 prior convictions and juvenile adjudications, which began in 2000. The government pointed out that these included violent felonies, like violence against women and were becoming more serious as time went on. The court agreed that in Martin’s case, the safety of the public was the most important concern.
“All people deserve to feel safe in their relationships. Martin’s repeated use of firearms to commit domestic violence is unacceptable,” said ATF Detroit Special Agent in Charge James Deir. “ATF and our law enforcement partners remain resolute in holding violent offenders who threaten the safety of their family and our community accountable.”
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities in order to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.
This case was investigated by the Lansing Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Timothy VerHey prosecuted the case.
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Kidnapper Sentenced to 11 Years in Federal PrisonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Floyd Joseph Ball, Jr., age 38, of Newalla, Oklahoma, was sentenced to 132 months in prison for one count of kidnapping in Indian country.
The charges arose from investigations by the McIntosh County Sheriff’s Office, the Purcell Police Department, and the Federal Bureau of Investigation.
On February 6, 2023, Ball pleaded guilty to one count of kidnapping in Indian country. According to investigators, late in the evening on May 5, 2018, Ball entered the back door of a Purcell, Oklahoma, Subway sandwich shop and threatened the lone employee with a knife. Ball forced the victim into a waiting vehicle, and drove the victim two hours away to Checotah, Oklahoma, where Ball held the victim captive at an area residence. On May 6, a McIntosh County deputy located the vehicle outside the residence, apprehended Ball attempting to flee the scene, and freed the victim. The crime began in McClain County, within the boundaries of the Chickasaw Nation Reservation, in the Western District of Oklahoma, and ended in McIntosh County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The Honorable David Cleveland Joseph, U.S. District Judge in the Western District of Louisiana, sitting by assignment, presided over the hearing in Muskogee. Ball was remanded into the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Kyra Jenner represented the United States.
Justice Department Sues to Shut Down Houston-Based Tax Return PreparerRead the Press Release
The Justice Department filed a civil injunction suit in the U.S. District Court for the Southern District of Texas seeking to permanently bar a Houston-based return preparer from owning or operating a tax return preparation business and preparing tax returns for others.
The complaint alleges that Morshanda Lewis – operating through her business, Taxes R Us – regularly prepared and filed federal income tax returns for her customers on which she knowingly underreported the tax her customers owed, often generating larger refunds than her customers should have obtained. The complaint offers several examples of how, from 2020 to 2023, Lewis prepared hundreds of returns for tax years 2019 through 2022 that claimed residential energy credits or education credits to which she knew or should have known her customers were not entitled. The United States contends Lewis continued to prepare tax returns that claimed false credits despite several warnings from the IRS as early as November 2013 that many of the returns she prepared contained apparent errors.
According to the complaint, Lewis’ false residential energy credit and false education credit schemes for tax years 2019 to 2021, alone, caused significant loss in tax revenue, estimated to exceed $1 million.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
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.
1 - Lewis, Morshanda - Original Complaint.pdfJustice Department Sues Six Health Plans and Their Alliance for Concealing Overpayments for Military Managed Care ProgramRead the Press Release
The United States filed a complaint alleging that six health plans participating in the Uniformed Services Family Health Plan (USFHP) program, as well as their trade group, the US Family Health Plan Alliance, violated the False Claims Act by knowingly retaining erroneously inflated payments for healthcare services the health plans contracted to provide to retired military members and their families. The United States has also reached a settlement with Department of Defense (DOD) contractor Kennell & Associates Inc., a consulting firm, related to the conduct.
The USFHP program is one of the healthcare options available to military personnel, retirees and their families. Six health plans are eligible to participate in this program, each of which is a defendant in the government’s complaint: Brighton Marine Health Center, CHRISTUS Health Services, Johns Hopkins Medical Services Corporation, Martin’s Point Health Care, Pacific Medical Center and St. Vincent’s Catholic Medical Centers of New York.
Through the USFHP program, the DOD pays the plans capitated rates to provide healthcare services to their enrollees. According to the complaint, in June 2012, the plans learned of calculation errors that had inflated the rates they had been paid in prior years. Nevertheless, the plans took steps to conceal the existence of the overpayments from the government and continued to submit invoices at the inflated payment rates. The complaint alleges that during discussions about rates for the subsequent year, some of the plans even asked the government to continue paying them at the prior, inflated rates even though, by that time, those plans knew the rates were inflated by the errors.
“Contractors have an obligation to return overpayments, and we will hold accountable contractors that knowingly and improperly retain such funds,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are committed to ensuring that taxpayer funds for healthcare services to military members and their families are actually used for that purpose, not to enrich those charged with administering the program.”
“Protecting the integrity of the healthcare system for our military members and their families, is a top priority of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” said Acting Special Agent in Charge Brian J. Solecki of the DCIS Northeast Field Office. “The DOD expects companies to adhere to contract requirements and DCIS will continue to work with our law enforcement partners and the Justice Department to hold DOD contractors who engage in fraudulent activity at the expense of the U.S. military accountable for their actions.”
The United States filed its complaint in a lawsuit originally brought under the qui tam or whistleblower provisions of the False Claims Act by Jane Rollinson and Daniel Gregorie in the District of Maine. From 2007 to 2015, Rollinson worked at Martin’s Point Health Care, including as its Interim Chief Financial Officer. Gregorie was a consultant to the CEO and Board of Martin’s Point Health Care and later served on its Board of Trustees. The False Claims Act permits a private party to file an action on behalf of the United States and receive a portion of any recovery. The United States has the ability to intervene in such lawsuits, as it has in this case. The qui tam case is captioned United States ex rel. Rollinson v. Martin’s Point Health Care Inc., No. 2:16-cv-00447-NT.
The United States entered into a settlement agreement with Kennell and Associates Inc., a research and consulting firm located in Falls Church, Virginia, that provides actuarial consulting services to the Defense Health Agency (DHA) in connection with the USFHP program. The settlement resolves allegations that Kennell & Associates failed to notify DHA about errors in executing the rate-setting methodology that caused the USFHP rates to be overstated and their impact on DHA’s payments made to the plans. Under the terms of the settlement agreement, Kennell & Associates has agreed to pay the United States $779,951, plus interest, as well as contingent payments based on its annual contract revenue and cash reserves through the year 2025. The settlement amount is based on Kennell and Associates’ ability to pay.
The Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Maine investigated the case, with assistance from DHA.
Attorneys Diana Cieslak, Evan Ballan and Amy Kossak of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Andrew Lizotte and Sheila Sawyer for the District of Maine are handling this case.
The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims in the complaint and settlement agreement are allegations only. There has been no determination of liability.
Settlement ComplaintJury Convicts Charlotte Man of Illegal Firearm PossessionRead the Press Release
CHARLOTTE, N.C. – Today, a federal jury convicted Daniel Wood, 47, of Charlotte, of possession of a firearm by a convicted felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to trial evidence, witness testimony, and filed court documents, on May 1, 2022, Wood attempted to enter a Charlotte nightclub with a loaded firearm in his pants pocket. The security of the nightclub located the firearm when they patted down the defendant prior to entering the club. Security removed the firearm and turned it over to an off-duty CMPD officer. Trial evidence established that while the CMPD officer was in his patrol vehicle examining the firearm, Wood spoke to the officer and explained that he received the gun from someone else and that he had forgotten it was in the pocket of his pants.
Wood is in federal custody. A sentencing date has not been set.
The ATF and CMPD investigated the case.
Special Assistant U.S. Attorney (SAUSA) William Wiseman and Assistant U.S. Attorney Regina Pack of the U.S. Attorney’s Office in Charlotte are prosecuting the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the District Attorney’s Office and the U.S. Attorney’s Office.
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.
Junian M. Johnson, 47, of Omaha, Nebraska, was sentenced on March 13, 2024, in federal court in Omaha for being a felon in possession of a firearm.Read the Press Release
United States Attorney Susan Lehr announced that Junian M. Johnson, 47, of Omaha, Nebraska, was sentenced on March 13, 2024, in federal court in Omaha for being a felon in possession of a firearm. United States District Judge Brian C. Buescher sentenced Johnson to 120 months’ imprisonment. There is no parole in the federal system. After Johnson’s release from prison, he will begin a 3-year term of supervised release.
On November 13, 2022, Omaha Police Officers responded to report of shots fired in the area of N. 24th and Bristol Streets in Omaha. Douglas County Dispatch advised the caller had observed a black Chevrolet Tahoe with the driver firing gunshots in the area. Reporting officers tracked the vehicle’s license plate to its registered address just a few blocks away.
As officers responded to the home, they observed the defendant seated in the driver’s seat of the vehicle in the driveway of the residence. There were no other individuals in or around the vehicle.
Officers initially called out to the driver, later identified as Johnson, to speak to him. Johnson opened the rear driver’s door and could be seen reaching into the vehicle before locking the vehicle, throwing the keys into the vehicle, then closing the locked door. While speaking with Johnson, officers observed what appeared to be a magazine to a firearm sticking out from underneath the driver's seat of the vehicle in plain view.
Johnson’s vehicle was searched pursuant to a search warrant. Officers recovered a yellow bag containing a Glock 29- 10mm handgun with one round in the chamber, and a loaded magazine was found under the driver’s seat. The handgun was reported stolen out of Bellevue, Nebraska. In the center console officers found a clear baggie containing 27 blue circular pills, stamped with an “M” and a “30” – later confirmed to contain fentanyl according to a forensic laboratory report.
Johnson has the following prior convictions: Felon in Possession of a Firearm (1998) and Conspiracy RICO - Conspiracy to Distribute Marijuana (2009), both in the United States District Court, District of Kansas; and Possession of Cocaine, Marijuana, No Drug Stamp (2002), in the District Court of Sedgwick County, Kansas; and Felon in Possession of Ammunition (2015), in the United States District Court, District of Nebraska.
This case was investigated by the Omaha Police Department.
Iowa Man Sentenced for Drug Trafficking CrimeRead the Press Release
United States Attorney Susan Lehr announced that Stephen Ismael Monarrez, 45, of Carrol, Iowa, was sentenced on March 13, 2024 in federal court in Omaha, Nebraska, for distributing methamphetamine. United States District Judge Brian C. Buescher sentenced Monarrez to 120 months’ imprisonment. There is no parole in the federal system. After Monarrez’s release from prison, he will begin a 5-year term of supervised release.
On June 8, 2022, an ATF confidential source (CS) arranged to purchase meth from Monarrez. The CS was shown a photo of Monarrez, that they identified as the person who agreed to sell 4oz of meth for $1,200.00 dollars.
The CS went to the prearranged meet location in Omaha equipped with audio/video equipment. The CS parked on the east side of the street and Monarrez, identified by surveillance, entered the passenger side of the CS’s vehicle where the controlled buy occurred. A forensic lab determined the methamphetamine to be 94% pure.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Insurance Agent Charged in Alleged Scheme to Steal Clients Identities, File Fraudulent Insurance ApplicationsRead the Press Release
PROVIDENCE, RI – A North Attleboro, MA, self-employed insurance broker has been charged in federal court in Rhode Island with executing a scheme to obtain tens of thousands of dollars in commissions from an Iowa-based life insurance carrier by making unauthorized use of his clients’ personal identity information to sign them up for end-of-life insurance policies and draw money to pay for the unauthorized policies from their bank accounts, announced United States Attorney Zachary A. Cunha.
Bruno Francis Ragusa, 53, is charged by way of a federal criminal complaint with wire fraud, identity theft, and aggravated identity theft. He was released on unsecured bond following an initial appearance in U.S. District Court in Providence on Tuesday. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
It is alleged in documents filed with the court that Ragusa, through his North Attleboro-based company Atlantic Coast Senior Solutions, Inc., fraudulently obtained sales commissions by affixing the electronic signatures and other personal identity information of clients, without their knowledge or permission, on insurance policy applications and payment authorization forms for policies they did not request or authorize.
It is alleged that Ragusa utilized an online tool to submit approximately 206 policy applications to Great Western Insurance Company (GWIC), located in Des Moines, Iowa, from January 2019 to February 2023, of which an FBI review of records provided by Massachusetts insurance fraud investigators and GWIC determined that between December 5, 2022, and February 9, 2023, Ragusa electronically submitted nearly 150 insurance policy applications to GWIC, some just 15 minutes apart. The investigation revealed that some of the applications were being submitted in the names of people who had already passed away. Calls to the living “applicants” revealed that they did not know that policy applications had been submitted in their names and had not authorized Ragusa to submit the applications or payment authorization forms. Upon approval of an application, GWIC issues an advance commission to the agent responsible for the sale of the policy. The agent also receives an additional commission for each month a payment is received by GWIC and that the policy remains in effect. If a policy is cancelled shortly after being issued, the agent is required to return to GWIC the advance commission paid by the company. GWIC records show that Ragusa received $134,660.90 in advanced commission and $2,295.66 in additional commissions. Based on early policy cancellations, Ragusa owes GWIC $70,379.47.
On November 28, 2023, the Department of Business Regulation for the State of Rhode Island revoked Ragusa license to sell insurance in Rhode Island. Ragusa’s licenses to sell insurance in Massachusetts and Connecticut remain active.
The case is being prosecuted by Assistant United States Attorney Milind M. Shah.
The matter was investigated by the FBI. United States Attorney Cunha thanks the United States Attorney’s Office for the District of Massachusetts and the North Attleboro Police Department for their assistance.
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Hopkinton Couple Arrested for Multiple Fraud SchemesRead the Press Release
BOSTON - A Hopkinton couple has been arrested and charged in connection with separate schemes to defraud their workers’ compensation insurance carriers, the Small Business Administration (SBA) and their mortgage lender.
Ronaldo Solano, 51, and Adriana Solano, 40, were indicted by a federal grand jury in Boston with one count each of conspiracy to commit mail and wire fraud and one count of conspiracy to commit wire and bank fraud. Ronaldo Solano was also charged with one count of mail fraud and one count of wire fraud. The defendants were arrested this morning and will appear in federal court in Boston at 3:30 p.m. today.
According to the indictment, between in or about 2012 and in or about 2020, Ronaldo and Adriana Solano — who operate a roofing and construction company based in Framingham under the names H&R Roofing & Construction Inc. and H&R Roofing & Siding Corp. — avoided more than $627,000 in workers’ compensation insurance premiums by underreporting their payroll and paying workers through a shell company.
Separately, it is alleged that, between in or about 2021 and in or about 2022, Ronaldo and Adriana Solano submitted a loan application on behalf of H&R Roofing & Siding Corp. to the SBA under the Economic Injury Disaster Loan (EIDL) Program, which provided for pandemic relief under the Coronavirus Aid, Relief and Economic Security (CARES) Act. In the application, Ronaldo and Adriana Solano allegedly requested $2 million in relief funds for working capital and other eligible business expenses. After receiving the relief funds, it is alleged that Ronaldo and Adriana transferred $1 million of the funds to a personal bank account they shared, from which they allegedly used more than $825,000 for a down payment towards a home in Hopkinton. It is alleged that Ronaldo and Adriana Solano borrowed another $770,500 from a mortgage lender to fund the purchase of the Hopkinton home but did not disclose to their lender that they were using EIDL funds for the down payment.
The charge of conspiracy to commit mail fraud and wire fraud provides for a sentence of no more than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit wire fraud and bank fraud provides for a sentence of no more than 30 years in prison, five years of supervised release and a fine of $1 million or twice the gross gain or loss, whichever is greater. The charges of mail fraud and wire fraud provide for a sentence of no more than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Christopher Algieri, Special Agent in Charge of the Northeast Field Office of the U.S. Department of Veterans Affairs Office of Inspector General; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Valuable assistance was provided by the Insurance Fraud Bureau of Massachusetts. Assistant U.S. Attorney Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the EIDL Program, through which the SBA offers loans that can only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred.
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. Additionally, this case was investigated in connection with the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, which was established to promote transparency and coordinate oversight of the federal government’s COVID-19 pandemic response. The PRAC brings together federal agents from 20 agency Inspector Generals to detect fraud, waste, abuse and mismanagement in the more than $5 trillion in authorized COVID-19 funds.
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.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Green Bay Man Indicted for Distributing Child PornographyRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on March 12, 2024, a federal grand jury had returned an indictment charging Bryan S. Peterson (age: 45) of Green Bay, Wisconsin, with two counts of distributing child pornography, in violation of Title 18, United States Code, Section 2252A(a)(2)(A). Peterson was arrested and appeared in federal court today.
If convicted of either count, Peterson would face a mandatory minimum of five years and up to 20 years in federal prison. He also would face a maximum fine of up to $250,000 per count, and a conviction would require him to register as a sex offender under state and federal law.
This case was investigated by the U.S. Department of Homeland Security’s offices in Monterey, California, and Milwaukee, Wisconsin. Assistant United States Attorney Daniel R. Humble will prosecute 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 U.S. Department of Justice. Led by U.S. Attorneys’ 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.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact: Public Information Officer
(414) 297-1700
Green Bay Man Indicted for Distributing Child PornographyRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on March 12, 2024, a federal grand jury had returned an indictment charging Bryan S. Peterson (age: 45) of Green Bay, Wisconsin, with two counts of distributing child pornography, in violation of Title 18, United States Code, Section 2252A(a)(2)(A). Peterson was arrested and appeared in federal court today.
If convicted of either count, Peterson would face a mandatory minimum of five years and up to 20 years in federal prison. He also would face a maximum fine of up to $250,000 per count, and a conviction would require him to register as a sex offender under state and federal law.
This case was investigated by the U.S. Department of Homeland Security’s offices in Monterey, California, and Milwaukee, Wisconsin. Assistant United States Attorney Daniel R. Humble will prosecute 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 U.S. Department of Justice. Led by U.S. Attorneys’ 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.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact: Public Information Officer
(414) 297-1700
Grand Jury Returns Two IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.
Wausau Man Charged with Possessing Methamphetamine Intended for Distribution
Jonathan Rodriguez, 38, Wausau, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with intent to distribute. The indictment alleges that Rodriquez possessed the methamphetamine on November 26, 2023.
If convicted, Rodriquez faces a mandatory minimum penalty of 5 years and a maximum penalty of 40 years in prison.
The charge against Rodriquez was the result of an investigation conducted by the Wausau Police Department and the Marathon County Sheriff’s Office. Assistant U.S. Attorney Louis Glinzak is handling the case.
Fitchburg Man Charged with Possessing a Firearm and Ammunition as a Felon
Damariyah Muhammad, 22, Fitchburg, Wisconsin, is charged with possessing a firearm and ammunition as a felon. The indictment alleges that Muhammad possessed a loaded Glock 19 pistol on January 8, 2024. If convicted, Muhammad faces a maximum penalty of 15 years in federal prison.
The charge against Muhammad is the result of an investigation by the Dane County Sheriff’s Office, Fitchburg Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Colleen Lennon is handling the prosecution.
Gang Member Who Threatened to Burn Down a Yakima Bar Sentenced to 57 Months for Illegally Possessing a FirearmRead the Press Release
Yakima, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Alexis Nunez, 23, was sentenced after pleading guilty to one count of Felon in Possession of a Firearm. United States District Judge Mary K. Dimke imposed a sentence of 57 months imprisonment to be followed by 3 years of supervised release.
According to court documents and information presented at the sentencing hearing, on March 29, 2022, in the Yakima County Superior Court, Nunez was sentenced to 24 months imprisonment (concurrent) for two separate felony offenses. On July 25, 2022, Nunez was released from state prison. Six months after his release from prison, on January 25, 2023, officers with the Yakima Police Department responded to the Little Dutch Inn bar. Nunez had been drinking alcohol and became agitated when he was told he would no longer be served. Witnesses said they heard Nunez make threatening statements, including that “he would have his homies shoot up the bar and burn it down.” Nunez also bragged that he recently had been released from prison.
YPD Officers observed Nunez and another person walking a short distance from the bar. As officers approached, they saw Nunez throw a black handgun. Officers then arrested Nunez. The firearm was a Taurus, Model G3 semi-automatic pistol. The magazine was loaded with more than 15 rounds of ammunition. Officers also discovered marijuana that was possessed for the purposes of sale.
On March 29, 2022, Nunez had been convicted of Attempting to Elude a Police Vehicle, a felony, in Yakima County Superior Court. Because of this conviction, Nunez could not legally possess a firearm.
“Alcohol, firearms, and felons can be a deadly combination. Mr. Nunez made violent threats to employees and was armed with an illegal firearm. I’m grateful no one was hurt,” stated U.S. Attorney Waldref. “My office prioritizes cases that involve dangerous felons who illegally possess firearms. Along with our law enforcement partners, we will continue our collaborative, focused efforts to target violent offenders and make our communities safer and stronger.”
“As U.S. Attorney Waldref said, felons and firearms don’t mix, especially when alcohol is added into the mix,” said ATF Seattle Special Agent in Charge Jonathan Blais. “We’re thankful that Yakima Police Department was able to apprehend Mr. Nunez quickly and remove him from the streets. Hopefully this sentence will give him time to think about his life choices and change them going forward.”
"Ensuring our community’s safety is our highest priority. The successful conviction of Mr. Nunez highlights the indispensable collaboration between the Yakima Police Department and our federal partners. These joint efforts underscore the commitment to safeguarding our community from violent offenders,” said Yakima Police Chief Matthew Murray.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Yakima Police Department. This case was prosecuted by Assistant United States Attorney Thomas J. Hanlon.
Four South Florida Residents Charged with PPP and Mortgage FraudRead the Press Release
MIAMI –Raisha Kelly, 43, and Widny Thibaud, 44, of Loxahatchee, Florida and Cortira Gray, 33, and Ann Gilchrist, 55 of Miami, Florida have been charged with conspiracy to commit wire fraud wire fraud in connection with their submission of false and fraudulent PPP loan applications.
According to allegations in the indictment and statements made in open court, Kelly, Thibaud, Gray and Gilchrist conspired with themselves and others to submit PPP loan applications and submitted and caused the submission of fraudulent PPP and EIDL loan applications, on behalf of themselves and corporate entities that they controlled. Kelly, in return for the payment of kickbacks, submitted and caused the submission of false and fraudulent PPP loan applications for Gilchrist, Gray and others. Kelly, Thibaud, Gray and Gilchrist submitted and caused the submission of false and fraudulent information and documentation in support of the PPP loan applications, including falsified Internal Revenue Service (IRS) forms, among other things that falsely and fraudulently represented the annual gross receipts and tentative profits of the sole proprietorships and corporate entities they controlled. In total, this conspiracy caused PPP lenders to make approximately $1.3 million in loans to Kelly, Thibaud, Gray, Gilchrist and their co-conspirators.
According to allegations, during the commission of the conspiracy Gray was an employee of the U.S. Postal Service (USPS) and Gilchrist was an employee of the Miami-Dade Transit Department.
Thibaud is also charged with a separate wire fraud scheme for his submission of a false and fraudulent mortgage loan application to a mortgage lender that caused Thibaud to receive a $700,000 mortgage for which he was not qualified.
Gray, Gilcrhist and Kelly had their initial appearances on March 11. Thibaud had his initial appearance on March 12.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Jonathan Ulrich, Special Agent in Charge, USPS Office of Inspector General (USPS OIG), Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, and Special Agent in Charge Mathew Broadhurst of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Southeast Region made the announcement.
This case was investigated by the USPS OIG, SBA OIG, and DOL-OIG. This case is being prosecuted by Assistant U.S. Attorney Daniel Bernstein.
The charges contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 24-CR-20079.
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Four More Defendants Arraigned in Connection with Nationwide Conspiracy Targeting Credit UnionsRead the Press Release
ALBANY, NEW YORK – Victor Barriera, age 63, of the Bronx, New York, Jerjuan Joyner, age 49, of Brooklyn, New York, Akeem Balogun, age 53, of Brooklyn, and Lesley Lucchese, age 53, of Brooklyn, have been arrested on an indictment charging a bank fraud conspiracy that targeted credit unions all over the country starting in December 2021. All eight defendants have now been arraigned on the indictment.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
According to the indictment, court filings, and statements made by prosecutors in court, beginning in at least December 2021, Oluwaseun Adekoya, a/k/a “John Calling,” age 38, a Nigerian citizen residing in Newark, New Jersey, and David Daniyan, a/k/a “Bamikole Laniyan,” a/k/a “David Enfield,” a/k/a “Tajudeen Dosunmu,” a/k/a “David James,” a/k/a “Tony James,” a/k/a “James Bush,” age 59, a Nigerian citizen residing in Brooklyn, obtained the personal identifying information of scores of individuals who banked at credit unions throughout the United States.
The credit unions were members of a shared branching network, which allowed customers of member credit unions to withdraw funds from their accounts at other member credit unions by presenting an identification with their photograph, their account number, and the last four digits of their Social Security number. The network was designed to allow customers of localized credit unions easier access to their accounts when traveling throughout the country. However, according to the indictment, the defendants exploited this network by creating fake identifications in the names of real credit union customers, but with photographs of other individuals, whom they employed to conduct fraudulent transactions at shared branch member credit unions all over the country. In total, the indictment charges the eight defendants with obtaining more than $900,000, which ringleaders allegedly used to purchase luxury items including Rolex watches, Mercedes-Benz vehicles, and high-end clothing and apparel. The fraud was perpetrated in Albany, Clinton, Rensselaer, and Saratoga counties in the Northern District of New York, and all over the country.
According to statements made by prosecutors and court filings, authorities have seized over $45,000 in cash proceeds of the conspiracy, and an estimated tens of thousands of dollars in jewelry and merchandise, including Rolex watches, Gucci handbags, and Jimmy Choo shoes – many of which were new in their boxes.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The following defendants are charged in the indictment:
- Adekoya is charged with one count of conspiracy to commit bank fraud and two counts of aggravated identity theft;
- Daniyan is charged with one count of conspiracy to commit bank fraud and two counts of aggravated identity theft;
- Gaysha Kennedy, age 45, of Brooklyn, is charged with one count of conspiracy to commit bank fraud;
- Danielle Cappetti, age 45, of the Bronx, is charged with conspiracy to commit bank fraud and two counts of aggravated identity theft;
- Barriera is charged with conspiracy to commit bank fraud and two counts of aggravated identity theft;
- Lucchese is charged with conspiracy to commit bank fraud and two counts of aggravated identity theft;
- Joyner is charged with conspiracy to commit bank fraud; and
- Balogun is charged with conspiracy to commit bank fraud.
Adeyoka, Daniyan, Barriera and Joyner have each been ordered detained pending trial; the other defendants were released with conditions.
The bank fraud conspiracy charges carry a maximum term of 30 years in prison and the aggravated identity theft charge carries a mandatory term of 2 years in prison, to be imposed consecutive to any term of imprisonment imposed on the bank fraud charge. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.
FBI Albany is investigating the case, with assistance from the FBI Field Offices in New York and Newark, and Resident Agencies in Westchester, New York; Garrett Mountain, New Jersey; and Fort Walton Beach, Florida. Additional assistance was provided by other law enforcement agencies, including Immigration and Customs Enforcement – Enforcement & Removal Operations (New York Field Office & Albany sub-office); U.S. Department of State Diplomatic Security Service (Buffalo Field Office & St. Albans Resident Office); U.S. Social Security Administration – Office of the Inspector General; the New York State Police; Cohoes Police Department; Colonie Police Department; Elmira Police Department; Corning Police Department; Plattsburgh Police Department; Florida law enforcement agencies including the Okaloosa County Sheriff’s Office and Escambia County Sheriff’s Office; law enforcement agencies in New Hampshire, including the Rochester Police Department, Manchester Police Department, Amherst Police Department; the Norwich, CT Police Department; law enforcement agencies in Massachusetts, including the Springfield, MA Police Department; the Pennsylvania State Police; the Delaware State Police; and law enforcement agencies in Maryland, including the Harford County Sheriff’s Office and Baltimore County Sheriff’s Office.
Assistant United States Attorney Benjamin S. Clark is prosecuting this case.
Fort Wayne Man Sentenced to 100 Months in PrisonRead the Press Release
FORT WAYNE –Jalen Drake, 27 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Drake was sentenced to 100 months in prison followed by 2 years of supervised release.
According to documents in the case, Drake possessed a firearm in March of 2023 after previously being convicted of a felony offense. In 2018, Drake was convicted in Allen County of dealing in marijuana, and as such, was prohibited from possessing the firearm in this case.
This case was investigated by the Federal Bureau of Investigation’s Fort Wayne Safe Streets Gang Task Force, which consists of the FBI, the Indiana State Police, the Allen County Police Department, and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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.
Former Worth County Tax Commissioner Pleads Guilty to Filing False Tax ReturnRead the Press Release
ALBANY, Ga. – The former long-time Worth County, Georgia, Tax Commissioner has admitted to not reporting earnings from work she did for four cities on her tax return.
Tabetha DuPriest, 57, of Poulan, Georgia, pleaded guilty to one count of making and subscribing a false tax return before U.S. District Judge Leslie Gardner today. The maximum sentence is three years in prison to be followed by one year of supervised release, a $100,000 fine and restitution. A sentencing date will be determined by the Court. The defendant is not eligible for parole.
“There is no excuse for a long-time Tax Commissioner to fail to report earnings on personal income taxes, just like other citizens must do,” said U.S. Attorney Peter D. Leary. “These kinds of schemes undermine the public’s trust and simply won’t be tolerated by our office or our law enforcement partners.”
“Tax evasion undermines the integrity of our tax system and harms honest taxpayers,” said Rich Bilson, Senior Supervisory Resident Agent of FBI Atlanta’s Albany office. “The FBI remains committed to upholding tax compliance and pursuing those who attempt to evade their tax responsibilities.”
“As a tax commissioner, Tabetha DuPriest breached the public trust by willfully failing to report all of her income as required by law,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS special agents are committed to ensuring everyone pays their fair share of taxes to protect the integrity of the tax system.”
According to court documents, DuPriest was the Worth County Tax Commissioner since 2001; she also served as the President of the Georgia Association of Tax Officials from 2019-2021. In her role as Tax Commissioner, DuPriest oversaw the collection of motor vehicle taxes and property taxes for the Worth County cities of Sylvester, Poulan, Warwick and Sumner. For that work, she earned approximately $80,000 in wages a year and received a Form W-2 from the Worth County Board of Commissioners. In addition to her salary, each of these municipalities separately contracted with DuPriest to collect city taxes, and she was paid separately by each city for that work. An FBI and IRS investigation revealed that DuPriest failed to declare any of the additional income she had received from her independent contracts with the four municipalities in Worth County on her federal tax returns since she became Tax Commissioner. It was not until after she was interviewed by the FBI in 2022 that she began to declare the additional income. During the first FBI interview, DuPriest initially claimed she reported the additional income on her tax returns, however, during a subsequent interview she admitted she did not. DuPriest knew she was required to report these fees as self-employment income on her yearly tax returns. DuPriest received $99,293.65 from the four cities between 2016 and 2021 and did not report it as income, as required, on her tax returns. DuPriest is responsible for causing at least a $27,924.22 tax loss to the IRS and required to pay $22,482.22 in restitution.
This case was investigated by the FBI and the IRS.
Assistant U.S. Attorney Matthew Redavid is prosecuting the case for the Government.
Former U.S. Air Force member in Great Falls sentenced to 10 years in prison for scheme to obtain, sell child sexual abuse materialRead the Press Release
GREAT FALLS — A former member of the U.S. Air Force at the Malmstrom Air Force Base in Great Falls was sentenced today to 10 years in prison, to be followed by five years of supervised release, for obtaining and selling child sexual abuse material, U.S Attorney Jesse Laslovich said.
The defendant, Brandon Earl Bankston, 23, pleaded guilty in October 2023 to possession with intent to sell child pornography.
Chief U.S. District Judge Brian M. Morris presided. The court also ordered $60,000 restitution to victims. To date, the investigation has identified more than 20 victims of Bankston’s scheme, but only 20 victims requested restitution.
In court documents, the government alleged that Bankston obtained child sexual abuse material (CSAM) from various places on the internet and stored the material in an off-shore, cloud-based storage account. Bankston then used mobile messaging applications and fake online profiles to advertise the sale of the material to strangers online. When he found someone interested in the CSAM he possessed, Bankston received payment through electronic wire transfers and would then link the buyer, allowing access to the material stored in his offshore storage account. The government further alleged that Bankston possessed and traded thousands of images and videos of child sexual abuse, some of which depicted the abuse of toddlers. In the summer of 2021, the Great Falls Internet Crimes Against Children Task Force was alerted that a suspect in Montana had uploaded videos containing known CSAM to an account on “X” and further learned that a Snapchat user with a Montana address had posted an image of CSAM. The investigation determined that the internet provider address belonged to Bankston, who was an active-duty member of the U.S. Air Force assigned to the 341st Missile Security Forces Squadron at Malmstrom Air Force Base. Bankston has since been discharged and is no longer affiliated with the U.S. Air Force. Bankston received approximately $6,750 for the sale of CSAM from 42 separate transactions.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case. The Great Falls Internet Crimes Against Children Task Force, Homeland Security Investigations and the U.S. Air Force Office of Special Investigations conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Former Telecommunications Company Manager Admits Role in SIM Swapping SchemeRead the Press Release
CAMDEN, N.J. – A former manager of a telecommunications company from Burlington County, New Jersey, admitted swapping the Subscriber Identity Module (SIM) numbers of cell phone customers into mobile devices controlled by another individual, who was paying the former manager for the unauthorized swaps, Attorney for the United States Vikas Khanna announced today.
Jonathan Katz, aka “Luna,” 42, of Marlton, New Jersey, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb in Camden federal court on March 12, 2024, to an information charging Katz with conspiracy to gain unauthorized access to a protected computer.
According to documents filed in this case and statements made in court:
In May 2021, Katz was employed as a manager at a telecommunications store and accessed several customer accounts by using managerial credentials. Katz swapped the SIM numbers associated with the customers’ phone numbers into mobile devices controlled by another individual, enabling this other individual to control the customers’ phones and access the customers’ electronic accounts – including email, social media, and cryptocurrency accounts. In exchange for the swaps, Katz was paid in Bitcoin, which was traced back to Katz’s cryptocurrency account.
The conspiracy to gain unauthorized access to a computer offense carries a statutory maximum of five years in prison and a fine of not more than $250,000 or twice the pecuniary gain to the defendant or twice the gross loss involved, whichever is greater. Sentencing is scheduled for July 16, 2024.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the U.S. Attorney’s Cybercrime Unit.
katz.information.pdfFormer South Carolina Police Chief to be Sentenced in Sextortion SchemeRead the Press Release
COLUMBIA, S.C. — William Bruce Parker, former police chief, is scheduled be sentenced in federal court tomorrow, Thursday, March 14. Parker is being sentenced after being pleading guilty to cyberstalking resulting in serious bodily injury and communicating threats with the intent to extort victims for the production of pornography and coerced sex acts. Read the previous release here.
United States District Judge Cameron McGowan Currie accepted Parker’s guilty plea in October of 2023 and will impose the sentence.
WHEN: Thursday, March 14, 2024, 11 a.m.
WHERE: Matthew J. Perry, Jr. Federal Courthouse
Courtroom 1
901 Richland Street
Columbia, South Carolina
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NOTE: The prosecuting attorneys will be available for interviews following the sentencing. The sentencing hearing could last more than one hour. No cameras or cell phones are allowed in federal court.
Former Law Firm Office Manager Sentenced to 3 Years in Prison for Embezzling More Than $1.1 Million from San Francisco Law FirmRead the Press Release
SAN FRANCISCO – Jairo Tomas Santos was sentenced to 36 months in prison and ordered to pay $1,191,638.64 in restitution for bank fraud in connection with a scheme to embezzle funds from his former employer, a San Francisco-based law firm, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Hon. William H. Alsup, United States District Judge.
Santos, 42, formerly of San Mateo, California, pleaded guilty to the charge on November 20, 2023. According to his plea agreement, Santos admitted he embezzled more than $1.1 million from a San Francisco-based law firm where he had been employed as the office manager. According to his plea agreement, Santos began his embezzlement scheme no later than March 2016 and continued it through February 2023. As part of the scheme, Santos obtained checks from the victim law firm, filled out the payee line of those checks, addressing them to “Jairo Santos,” and signed each check with the signature of the law firm’s senior partner even though Santos was not authorized to do so. Santos then deposited these checks into his personal checking accounts at Wells Fargo Bank. Santos admitted he deposited approximately 806 fraudulent and unauthorized checks from the victim law firm made payable to Santos into his personal checking accounts. The total value of these unauthorized deposits was approximately $1,191,683. Santos deposited these checks from the victim law firm knowing that the payments were not authorized by the firm or its senior partner.
A federal grand jury indicted Santos on July 25, 2023, charging him with three counts of bank fraud, in violation of 18 U.S.C. § 1344. Santos pleaded guilty to one count. As part of his sentencing, Judge Alsup dismissed the remaining counts.
In imposing the sentence, Judge Alsup remarked that this is “an egregious case” with “hundreds and hundreds of checks written and stolen” by the defendant. Judge Alsup emphasized that Santos “took advantage” of the victim law firm and that Santos’s conduct was “unforgivable.” In addition to the prison term and restitution, Judge Alsup also sentenced the defendant to a five-year period of supervised release to begin after the defendant is released from prison. Judge Alsup ordered the defendant to begin serving his prison term on April 23, 2024.
Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case with the assistance of Aarian Beiti. The prosecution is the result of an investigation by the FBI.
Former FBI Agent Trainee Sentenced to 15 Months in Prison for Insider Trading SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that SETH MARKIN was sentenced by U.S. District Judge Edgardo Ramos to 15 months in prison for his participation in a scheme to trade in stock of Pandion Therapeutics (“Pandion”) based on material, non-public information that he misappropriated from his then-girlfriend and stole from her employer, a major law firm where his then-girlfriend was an attorney assigned to work on the acquisition of Pandion by Merck & Co. (“Merck”). MARKIN was arrested in July 2022 and pled guilty to securities fraud based on insider trading on December 4, 2023.
U.S. Attorney Damian Williams said: “Seth Markin betrayed the trust of his then-girlfriend when he misappropriated confidential information, traded based on that information, and tipped several friends and family members. Markin knew his actions were wrong and lied, repeatedly, to try to cover up his scheme. Markin, who had been accepted into the FBI as a new agent trainee at the time of his conduct, finds himself in a complete reversal of fortune — instead of investigating crimes, he’ll now spend time in prison. Today’s sentence should serve as a stark reminder that, no matter who you are, if you try to cheat the system by stealing and trading based on material, non-public information, you will be punished.”
As alleged in the Indictment, other public court documents, and statements made during court proceedings:
In early 2021, SETH MARKIN and BRANDON WONG together made more than $1.4 million dollars in illegal profits by trading in stock based on inside information that MARKIN stole from his then-girlfriend, who was at the time an attorney at a major law firm in Washington D.C. (the “Law Firm Associate”). At the time, MARKIN had been accepted into the Federal Bureau of Investigation (“FBI”) as a new agent trainee, and WONG was a systems analyst at an education company. In February 2021, MARKIN secretly looked through the Law Firm Associate’s confidential work documents, without her permission, and learned that, in a matter of weeks, Merck, a publicly traded pharmaceutical company, was going to acquire Pandion, a publicly traded biotechnology company, for approximately three times the value of Pandion’s share price. MARKIN immediately purchased Pandion stock on the basis of this material, non-public information and also told several family members and friends to purchase Pandion’s stock, causing WONG, another friend, and several family members to do so, including Family Member-1, Family Member-2, Family Member-3, Family Member-4, and Friend-1. In text messages, MARKIN assured WONG that he was “not uncertain” that when the “news drop[ped]” about Pandion, the price would “EXPLODE,” and they would earn “triple gains.”
WONG purchased hundreds of thousands of dollars’ worth of Pandion shares based on the material, non-public information he received from MARKIN. In addition to his purchases of Pandion stock, WONG told at least seven other people to purchase Pandion shares, causing some of the people he tipped to purchase tens or hundreds of thousands of dollars’ worth of Pandion stock, including Family Member-5, Friend-2, Friend-3, Friend-4, Friend-5, Friend-6, and Friend-7.
In total, MARKIN and WONG together caused at least 20 people to trade in Pandion stock based on the material, non-public information that MARKIN misappropriated from his girlfriend, resulting in millions of dollars of illegally obtained trading profits. To conceal their illegal insider trading scheme, MARKIN and WONG used an encrypted messaging application and deleted many of their text messages with each other. They also agreed on a cover story that they could provide to law enforcement, namely, that if they were asked how they anticipated Pandion’s stock price increase, they could say they “read it on Stocktwit,” in reference to a social media platform for sharing stock ideas, and falsely say that the news was “publicly being announced there.”
After Merck’s acquisition of Pandion was announced publicly, and the Pandion stockholdings of MARKIN and WONG, and those whom they tipped, significantly increased in value, the defendants sold their shares of Pandion for significant profits. With their illegal profits, the defendants and their tippees purchased luxury items and bought gifts for each other. For example, WONG purchased for MARKIN a Rolex watch valued at approximately $40,000, a trip to Hawaii, and a meal at a three-Michelin-starred restaurant in New York that cost more than $1,000. WONG also purchased a home in Florida.
Thereafter, MARKIN lied in order to hide his illegal insider trading. In or about June 2021, after MARKIN and the Law Firm Associate had ended their relationship and as MARKIN was preparing to begin training as a new agent at the FBI Academy in Quantico, Virginia, the Law Firm Associate called MARKIN to ask why MARKIN’s name had come up in an inquiry by the Financial Industry Regulatory Authority into trading in Pandion stock. In response, MARKIN lied to the Law Firm Associate and falsely claimed that he did not trade in Pandion stock.
MARKIN subsequently took steps to further conceal his criminal activity. On November 18, 2021, MARKIN lied to FBI agents when he was interviewed about his Pandion trading. That day, Special Agents from the FBI interviewed MARKIN in connection with an investigation they told him was being conducted by law enforcement in the Southern District of New York relating to insider trading in Pandion stock. During the interview, MARKIN adhered to the fake cover story he and WONG had concocted and falsely told the agents that he learned about Pandion on StockTwits, that he purchased the stock because of a recent earnings report and a new board member addition, and that he did not know that his former girlfriend worked on the Pandion transaction.
* * *
In addition to the prison sentence, MARKIN, 32, of Washington Crossing, Pennsylvania, was sentenced to three years of supervised release and ordered to forfeit $82,366.
Mr. Williams praised the outstanding investigative work of the FBI and the Department of Justice’s Office of the Inspector General. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed parallel civil actions.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Nicolas Roos and Negar Tekeei are in charge of the prosecution.
Former California Rideshare Driver Charged with Federal Hate Crime for Antisemitic Attack on PassengerRead the Press Release
A Daly City, California, resident and former rideshare driver was arrested today for an Oct. 26, 2023, assault on a rider because he perceived the rider to be Jewish or Israeli.
“The defendant, a rideshare driver, is charged with assaulting a rider because he thought the rider was Jewish or Israeli,” said Attorney General Merrick B. Garland. “No one in this country should live in fear because of how they worship or where they come from. The Justice Department will aggressively prosecute those who perpetrate hate-fueled violence motivated by antisemitism or by bias of any kind.”
“No one should ever fear being attacked because of their nationality or religion,” said FBI Director Christopher Wray. “In this case, a rideshare driver assaulted the victim because he perceived them as Jewish or Israeli. The FBI is firmly committed to investigating such bias-motivated acts of violence and holding the perpetrators accountable to keep Americans safe.”
“When taking public transportation – whether a taxi, bus, or rideshare – customers should be able to ride without being profiled, or worse yet attacked, because of their nationality or religion by drivers,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “We will prosecute any ride-share driver who assaults a passenger in such hate-fueled violence.”
According to the indictment unsealed this morning, on Oct. 26, 2023, Csaba John Csukás, 39, struck the victim in the face while at San Francisco International Airport (SFO) because the defendant perceived the victim to be Jewish or Israeli. The indictment alleges Csukás worked as a driver for an app-based rideshare company and was hired to drive the victim from SFO to the victim’s home. The indictment further alleges that when Csukás approached the victim at a predetermined pickup location, Csukás asked the victim if the victim was Jewish or Israeli, stated that he would not transport a Jewish or Israeli person, and attacked the victim by striking the victim in the face with his fist.
Csukás made his initial appearance today and is charged with committing a federal hate crime which prohibits, among other things, causing bodily injury because of the actual or perceived religion or national origin of a person in circumstances affecting interstate commerce.
Csukás faces a maximum penalty of 10 years in prison and a fine of $250,000 for the hate crime charge. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Special Agent in Charge Robert K. Tripp of the FBI San Francisco Field Office joined the announcement.
The FBI San Francisco Field Office investigated the case.
The U.S. Attorney’s Office for the Northern District of California’s Special Prosecutions Section is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former California Rideshare Driver Charged with Federal Hate Crime for Anti-Semitic Attack on PassengerRead the Press Release
SAN FRANCISCO—A Daly City, California, resident and former rideshare driver was arrested on March 13, 2024, for an Oct. 26, 2023, assault on a rider because he perceived the rider to be Jewish or Israeli.
“The defendant, a rideshare driver, is charged with assaulting a rider because he thought the rider was Jewish or Israeli,” said Attorney General Merrick B. Garland. “No one in this country should live in fear because of how they worship or where they come from. The Justice Department will aggressively prosecute those who perpetrate hate-fueled violence motivated by antisemitism or by bias of any kind.”
“When taking public transportation – whether a taxi, bus, or rideshare – customers should be able to ride without being profiled, or worse yet attacked, because of their nationality or religion by drivers,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “We will prosecute any ride-share driver who assaults a passenger in such hate-fueled violence.”
“This unprovoked attack was senseless and brutal,” said Robert Tripp, SAC of the San Francisco FBI Field Office. “Hate crime is among the FBI’s highest priorities and we will work to bring justice for victims of bias-motivated crime.”
According to the indictment unsealed this morning, on Oct. 26, 2023, Csaba John Csukás, 39, struck the victim in the face while at San Francisco International Airport (SFO) because the defendant perceived the victim to be Jewish or Israeli. The indictment alleges Csukás worked as a driver for an app-based rideshare company and was hired to drive the victim from SFO to the victim’s home. The indictment further alleges that when Csukás approached the victim at a predetermined pickup location, Csukás asked the victim the if the victim was Jewish or Israeli, stated that he would not transport a Jewish or Israeli person, and attacked the victim by striking the victim in the face with his fist.
Csukás made his initial appearance today and is charged with committing a federal hate crime which prohibits, among other things, causing bodily injury because of the actual or perceived religion or national origin of a person in circumstances affecting interstate commerce.
Csukás faces a maximum penalty of 10 years in prison and a fine of $250,000 for the hate crime charge. If convicted, a federal district court judge will determine any sentence after consulting the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Ismail J. Ramsey for the Northern District of California and Special Agent in Charge Robert K. Tripp of the FBI San Francisco Field Office made the announcement.
The FBI San Francisco Field Office investigated the case.
The U.S. Attorney’s Office for the Northern District of California’s Special Prosecutions Section is prosecuting the case.
Former Atlantic City Councilman Admits Submitting False Voter RegistrationsRead the Press Release
CAMDEN, N.J. – A former Atlantic City councilman today admitted falsifying voter registrations, U.S. Attorney Philip R. Sellinger announced.
MD Hossain Morshed, 50, a former councilman of Atlantic City’s Fourth Ward, pleaded guilty today before Chief U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with fraudulent procurement and submission of voter registration applications.
U.S. Attorney Philip R. Sellinger“This defendant admitted that he attempted to deprive residents of New Jersey of a fair election by obtaining false voter registration applications and facilitating their submission. Working with our law enforcement partners, we were able to uncover Morshed’s efforts to garner votes from residents who were not allowed to vote for him. We are committed to investigating and prosecuting those who unlawfully attempt to compromise the integrity of our elections.”
“When you sign up to serve in public office, you are, and should be, held to a higher standard. Morshed admits he knowingly committed voter fraud, and then directed others to lie about it,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Our voting processes and electoral functions are the bedrock of our democracy, and even a single elected official breaking to law in the hopes of returning to power creates cracks in the foundation. We must do all we can as law enforcement to protect our fundamental structure.”
According to documents filed in this case and statements made in court:
In April 2019, in advance of the June 2019 primary election, Morshed gave a prospective voter a New Jersey voter registration application that had already been filled out and which falsely asserted that the prospective voter had a residential address in the Fourth Ward (in Atlantic City), the ward that Morshed represented on the Atlantic City Council. Even though the address written on the form was not where the voter actually lived, Morshed urged the prospective voter to sign the application. Subsequently, Morshed visited the prospective voter at the voter’s actual residence and presented the prospective voter with a vote-by-mail application to sign which included the same false Fourth Ward Atlantic City address that was on the voter registration application and listed yet another false Atlantic City address for where the mail-in ballot should be sent to the voter.
The Atlantic County Superintendent of Elections subsequently received the falsified voter registration application that Morshed had the prospective voter sign and thereafter, the Atlantic County Board of Elections received the prospective voter’s completed mail-in ballot, and that ballot was counted towards the June 2019 primary election. The prospective voter later admitted that the voter did not receive, complete, or return the mail-in ballot. During lawfully recorded conversations between this voter and Morshed concerning possible questioning by law enforcement, Morshed directed the voter, if questioned by law enforcement, to make false representations about where the voter lived and who filled out the voter forms that Morshed had given to the voter. Sentencing is scheduled for July 16, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy; the FBI’s Newark, Atlantic City Resident Agency’s Public Corruption Task Force, including the Atlantic County Prosecutor's Office, under the direction of Prosecutor William Reynolds; the Atlantic City Police Department, under the direction of Officer-in-Charge Chief James A. Sarkos; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the Cape May County Prosecutor's Office, under the direction of Prosecutor Jeffrey H. Sutherland; as well as special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone; and postal inspectors of the U.S. States Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Branch Office and Assistant U.S. Attorney James H. Graham of the Organized Crime/Gangs Unit, under the supervision of the Special Prosecutions Division.
morshed.information.pdfFelon Sentenced to Serve 20 Years in Federal Prison for Child Sex TraffickingRead the Press Release
OKLAHOMA CITY – Earlier this week, MARCARIO EMMITT MARTIN, 36, of Oklahoma City, was sentenced to serve 240 months in federal prison for child sex trafficking, announced United States Attorney Robert J. Troester.
On November 15, 2022, a federal grand jury returned a three-count Indictment against Martin, charging him with child sex trafficking, sex trafficking by force, fraud, or coercion, and being a felon in possession of firearms. According to public record, in February 2021 law enforcement received information regarding Martin sex trafficking a minor victim. Court documents allege that Martin sexually abused the victim, provided the victim with disorienting and painful amounts of controlled substances, and engaged in sex trafficking of the minor for at least a month.
On August 31, 2023, Martin pleaded guilty to Count 1, and admitted he recruited, harbored, transported, and provided a person under 18 knowing the minor would be caused to engage in a commercial sex act.
At the sentencing hearing on Monday, U.S. District Judge Bernard M. Jones sentenced Martin to serve 240 months in federal prison, followed by supervised release for life. In announcing his sentence, the Court noted the seriousness of the offense and Martin’s extensive criminal history. The Court will determine restitution at a later hearing.
Public record reflects that Martin holds several previous felony convictions in Oklahoma County District Court, including two counts of possession of methamphetamine in case numbers CF-2016-6100 and CF-2016-7275, possession of a stolen vehicle in case number CF-2017-5130, felon in possession of a firearm in case number CF-2017-6285, escape from a penitentiary in case number CF-2018-1229, and endangering others while eluding and trafficking in methamphetamine in case number CF-2021-641.
This case is the result of an investigation by Homeland Security Investigations and the Oklahoma City Police Department. Assistant U.S. Attorney Mary E. Walters and Trial Attorney Gwendelynn Bills of the Department of Justice’s Child Exploitation and Obscenity Section prosecuted the case.
This case is part of Project Safe Childhood (PSC), a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.
Reference is made to public filings for additional information.
Federal Trial Jury Finds Prospect Man Guilty of Bank Fraud, Wire Fraud, and Money LaunderingRead the Press Release
Louisville, KY – Yesterday a federal jury convicted a Prospect man of seven felony offenses to include two counts of conspiracy to commit bank fraud, two counts of bank fraud, two counts of wire fraud, and one count of money laundering after a seven-day jury trial.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Vince Zehme of the FDIC Office of Inspector General, and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.
According to court documents and evidence presented at trial, from 2013 to 2014, Jeffrey Robert Owen, age 59, conspired with his wife, Kimberly Dawn Owen, age 56, to apply for four commercial real estate loans from three financial institutions using personal financial statements that omitted liabilities and judgments. After the loans at one of the banks went into default, Jeffrey Owen and his wife took steps to block the collection through fraud, including filing a fraudulent bankruptcy petition to stay foreclosure proceedings on one of the properties. To obtain escrowed insurance proceeds, Jeffrey Owen also provided the bank with invoices from a fake business and identified an acquaintance who had been dead for several years as one of the people who worked at the business. To thwart the bank and other creditors, Jeffrey Owen and his wife filed a lawsuit on behalf of one of their entities against Jeffrey Owen’s wife in her individual capacity. Jeffrey Owen used the lawsuit to garnish his wife’s wages, so another creditor would be unable to garnish them. They then spent the money from the garnishment on their household expenses such as the mortgage on their $750,000 home and tuition for their two children at a local private school.
Jeffrey Owen is scheduled for sentencing on July 17, 2024, in the United States District Court for the Western District of Kentucky. The Court ordered Jeffrey Owen detained pending sentencing. He faces a maximum sentence of 180 years in prison. A federal district court judge will determine the sentence after considering the sentencing guidelines and other statutory factors.
Kimberly Owen previously pled guilty to misprision of a felony for her conduct. Kimberly Owen is scheduled for sentencing on May 21, 2024, in the United States District Court for the Western District of Kentucky. She faces a maximum sentence of 3 years in prison. A federal district court judge will determine the sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
The FDIC Office of Inspection General and the FBI investigated the case.
Assistant U.S. Attorneys Amanda Gregory and Nicole Elver are prosecuting the case with assistance from paralegal James Aaron Cooper.
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Federal Jury Finds Tampa Man and Woman Guilty of Possessing Cocaine, Fentanyl, and Machine Gun During Drug Trafficking CrimesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Elias Xavier Rosario Torres (26, Tampa) and Veronica Estefania Rodriguez Pinuela (23, Tampa) guilty of possession with the intent to distribute fentanyl and over 500 grams of cocaine and possession of a machine gun in furtherance of a drug trafficking crime. In addition, Rosario Torres was also found guilty of conspiracy to possess with the intent to distribute fentanyl and over 500 grams of cocaine and possessing a firearm as a convicted felon. Both defendants face a mandatory minimum penalty of 35 years, up to life, in federal prison. Rosario Torres and Rodriguez Pinuela were indicted by federal grand jury on October 25, 2022.
According to evidence presented at trial, Rosario Torres and Rodriguez Pinuela were stopped on March 8, 2022, by Tampa Police Department officers after a traffic infraction. During the traffic stop, officers located two backpacks in the defendants’ possession containing nearly a kilogram of cocaine, 16 grams of fentanyl, a Glock 23 handgun, two loaded magazines, and additional ammunition. The Glock 23 was modified with a chip that converted the handgun into a machine gun. At the time of the offense, Rosario Torres was a convicted felon, having been convicted of aggravated assault with a deadly weapon, and is prohibited from possessing a firearm under federal law.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Jeff Chang, James C. Preston, and Samantha E. Beckman.
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.
Facial recognition technology used to locate child victim after a decade leading to arrest of Elma manRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Matthew A. Steele, 53, of Elma, NY, was arrested and charged by criminal complaint with production and distribution of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum penalty of 30 years.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, in January 2023, the Department of Homeland Security Cyber Crimes Center received a referral from the Queensland Police Service in Australia, regarding media they had discovered that appeared to be newly produced and unidentified child exploitation material. The referral included 47 images depicting the sexual exploitation of an early pubescent female victim (Victim 1). In September 2023, HSI performed a visual analysis of images, which included various areas of a home as well as distinct dermatological markings on Victim 1. A few of the images contained metadata, which helped to determine the type and serial number of the camera used and that the photos were created in March 2013. HSI was able to identify and locate Victim 1.
HSI agents executed a search warrant at Steele’s Elma residence, during which agents observed several photographs of Victim 1 as a child in several rooms. They also observed the layout and the décor of the residence, which matched some of the images from the from the Queensland Police Service. Agents also located the camera used to take the images.
Steele appeared at a detention hearing today before U.S. Magistrate Judge Jeremiah J. McCarthy and was ordered detained.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino and the Great Falls, Montana Police Department, under the direction of Chief Jeff Newton.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Executive Assistant U.S. Attorney to Leave Office after Stellar 14-Year CareerRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced today that Executive Assistant U.S. Attorney Lee M. Cortes Jr. is leaving the office for private practice after a 14-year career in the District of New Jersey, during which he served in a variety of key roles and made immense contributions to the cause of justice.
Cortes, who came to the office in 2010, oversaw the office’s Health Care Fraud Unit and was deputy chief of the Special Prosecutions Division before taking over as Executive U.S. Attorney. He also worked as a line attorney in the office, trying several federal criminal trials, as well as investigating and taking guilty pleas in some of the office’s most significant matters.
U.S. Attorney Philip R. Sellinger“Lee Cortes is one of the finest attorneys to have worked at the U.S. Attorney’s Office. He has worked on and supervised some of our most complex and important matters and has always conducted himself in the highest traditions of the office. As Executive Assistant U.S. Attorney, Lee has been part of my core management team, overseeing a staff of more than 300 as we work together every day to keep New Jersey safe. In his 14 years with the office, Lee has set a standard of excellence that serves as a model for all of our Assistant U.S. Attorneys.”
While serving as chief of the Health Care Fraud Unit, Cortes supervised a dozen Assistant U.S. Attorneys and directed criminal and civil investigations and prosecutions of corporations, executives, doctors, pharmacies, and others for health care-related offenses. These included health care fraud and violations of the Anti-Kickback Statute, the Federal Food, Drug, and Cosmetic Act, and the Foreign Corrupt Practices Act. He also directed the unit’s qui tam practice and supervised health care-related False Claims Act actions.
As deputy chief of the Special Prosecutions Division, Cortes supervised a dozen federal prosecutors handing public corruption matters, including prosecutions for civil rights violations.
“As a prosecutor, Lee has always acted with integrity, demonstrated an unwavering commitment to fairness, and worked extraordinarily hard to ensure just outcomes,” U.S. Attorney Sellinger said. “His achievements will be remembered, and his presence will be missed.”
Drug trafficker who created fortified compound at Bellingham homeless encampment pleads guiltyRead the Press Release
Seattle – A 32-year-old citizen of Mexico pleaded guilty today to drug trafficking and firearms charges related to his distribution of narcotics at a Bellingham homeless encampment, announced U.S. Attorney Tessa M. Gorman. Rigoberto Vasquez-Martinez has been in federal custody since he was arrested on August 29, 2023, following a traffic stop near Brownsville, Oregon. Vasquez-Martinez will be sentenced by U.S. District Judge Evanson on June 11, 2024.
According to the plea agreement, Vasquez-Martinez lived in a fortified encampment within an area known as the “Walmart encampment” in Bellingham. Vasquez-Martinez admits having armed guards acting as security around the main structure where he stayed. The encampment is called the Walmart encampment because it stretches a half-mile east of Walmart.
Law enforcement has responded to a wide range of incidents at the encampment and received information that Vasquez-Martinez was a significant drug supplier to the area. While Vasquez-Martinez was under investigation, he was stopped in Oregon apparently returning from California where he had picked up a supply of drugs. When Vasquez-Martinez’ car was searched, law enforcement found more than seven kilos of fentanyl pills – more than 65,000 pills in all. Vasquez-Martinez admits he was on his way back to Western Washington to distribute the fentanyl. They also seized $3,000 in cash and multiple cell phones. On that same day, law enforcement searched a storage locker in Lynnwood registered to Vasquez-Martinez’ wife. In it they found three kilos of fentanyl powder, 300 grams of methamphetamine, approximately 1.9 kilograms of heroin, and a 9mm handgun and $46,000 in cash. Vasquez-Martinez admits that 9mm handgun was used in furtherance of his drug trafficking activities.
Finally, on August 31, 2023, law enforcement searched the compound where Vasquez-Martinez had been living. They seized more than $4,000 in cash and an AR-15 semi-automatic rifle. They also seized a sawed-off shotgun.
Due to the drug amounts and the possession of the firearms, Vasquez-Martinez faces a mandatory minimum ten years in prison. Both possession of a controlled substance with intent to deliver and attempted possession of a controlled substance with intent to distribute are punishable by a mandatory minimum five years in prison and up to 40 years in prison. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a mandatory minimum five years in prison to run consecutive to any other sentence imposed.
Both prosecutors and defense will recommend a ten-year sentence when Vasquez-Martinez is sentenced. Judge Evanson is not bound by that recommendation and can impose any sentence allowed by law.
The case was investigated by the DEA and the Whatcom County Sheriff's Office Gang and Drug Task Force (WGDTF).
The case is being prosecuted by Assistant United States Attorney Amanda McDowell with assistance from Oregon Assistant United States Attorney Peter Sax.
Dodson man sentenced to 18 months in prison for assault charge stemming from vehicle crash on Fort Belknap Indian ReservationRead the Press Release
GREAT FALLS — A Dodson man who admitted to an assault charge stemming from a vehicle crash in which his truck hit another vehicle, seriously injuring the other driver, was sentenced today to 18 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Marvin James Cole, 28, pleaded guilty in October 2023 to assault resulting in serious bodily injury.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged that on June 22, 2022, Cole crashed his GMC truck into a Dodge Avenger driven by the victim, identified as John Doe, on Highway 66 near Harlem, on the Fort Belknap Indian Reservation. Doe suffered serious injuries and ultimately was treated at a hospital in Seattle. A toxicology report showed amphetamine and methamphetamine in Cole’s blood. Cole agreed that he likely drifted into the other lane when he looked at his phone.
The U.S. Attorney’s Office prosecuted the case. The FBI, Fort Belknap Law Enforcement, Montana Highway Patrol and Phillips County Sheriff’s Office conducted the investigation.
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Crab grab nets federal convictionRead the Press Release
NORFOLK, Va. – A Tangier man pleaded guilty today to overharvesting Chesapeake Blue Crabs in Virginia waters and selling them in Maryland in violation of the Lacey Act.
According to court documents, between March 20, 2023, to April 20, 2023, James Warren Eskridge, 45, exceeded the maximum harvest and sale of blue crabs to a seafood buyer on 16 occasions. Chesapeake Blue Crabs are the most valuable fishery in the Chesapeake Bay and, as such, those fishing blue crabs are subject to strict limits by law. At the time of Eskridge’s violations, Virginia permitted licensed commercial crabbers to harvest up to 27 bushels of blue crab per day, regardless of the number of licenses crabbers present on a single vessel.
Eskridge operated the fishing vessel Rebecca Jean II with two mates out of Tangier Island, Virginia. On April 11, 2023, law enforcement observed Eskridge and his mates offload 60 bushels – more than double the Virginia limit – in Crisfield, Maryland. On April 11, 2023, Eskridge and his mates returned to Crisfield and offloaded 56 bushels. On April 13, 2023, they returned again and offloaded 58 bushels more.
When confronted by investigators, Eskridge originally claimed to have purchased the additional crabs from a “buy boat” to sell on shore. After being challenged, Eskridge admitted that all the crabs were his and that he was over the Virginia harvesting limit for blue crabs. Records from the seafood buyer in Crisfield showed that between March 20, 2023, and April 20, 2023, Eskridge sold in excess of 27 bushels to the seafood buyer on 16 occasions on which Eskridge’s over harvesting ranged from 32 bushels to 58.75 bushels of blue crab.
Eskridge pleaded guilty to one count of knowingly transporting and selling blue crab in interstate commerce between Virginia and Maryland in violation of Virginia law and one count of knowingly making and submitting a false record.
Eskridge is scheduled to be sentenced on July 17. He faces a maximum penalty of five 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 Edward Grace, Assistant Director for the Office of Law Enforcement, U.S. Fish and Wildlife Service, made the announcement after U.S. District Judge Elizabeth W. Hanes accepted the plea.
The Maryland Natural Resources Police provided significant assistance in the investigation of this case.
Assistant U.S. Attorney Joseph Kosky is 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. 2:23-cr-141.
Convicted Felon from Pittsburgh Indicted on Narcotics and Firearms ChargesRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Eric G. Olshan announced today.
The three-count Superseding Indictment named Kendall McKoy, 21, as the sole defendant.
According to the Superseding Indictment, on or about June 7, 2021, McKoy possessed with intent to distribute fentanyl and cocaine base. In addition, on that same day, McKoy possessed a firearm in furtherance of that drug trafficking crime. Finally, on or about June 27, 2022, McKoy possessed a firearm and ammunition as a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney DeMarr W. Moulton is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Superseding Indictment in this 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.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Convicted Drug Distributor Charged with Distributing Cocaine Base in Decker TowersRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Lamont Hudgins, 42, of Staten Island, New York, has been indicted by a federal grand jury with distributing cocaine base at Decker Towers, a Burlington Housing Authority high-rise for elderly and disabled residents. Hudgins was arraigned on March 11, 2024 and is detained pending further proceedings.
According to court records, in 2018, Hudgins was convicted of distribution of heroin and marijuana in the District of Vermont and sentenced to 46 months’ imprisonment. A complaint filed in this case alleges that, in 2023 and 2024, Hudgins distributed cocaine base and fentanyl to a confidential informant on at least seven occasions in and around Decker Towers.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Hudgins is presumed innocent until and unless he is convicted of a crime. Hudgins faces up to 20 years in prison and a fine of up to $1,000,000. The actual sentence, however, would be determined by the Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Federal Bureau of Investigation, the Burlington Police Department, the Franklin County Sheriff’s Department, and the Northwest Vermont Drug Task Force.
Assistant United States Attorney Corinne Smith is handling the prosecution. Mark A. Kaplan, Esq., represents Hudgins.
Columbus, Ohio, Resident Sentenced to More than 11 Years in Prison for Trafficking of Cocaine into Western PennsylvaniaRead the Press Release
PITTSBURGH, Pa. - A resident of Columbus, Ohio, has been sentenced in federal court to 135 months of imprisonment, to be followed by five years of supervised release, on his conviction for conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, United States Attorney Eric G. Olshan announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Norberto Castillo-Lopez, 34, who was found guilty of the charge during a three-day jury trial in November 2023.
The evidence introduced during that trial established that Castillo-Lopez was the organizer and leader of an organization that was trafficking kilogram-quantities of cocaine from Columbus, Ohio, into the Western District of Pennsylvania. Beginning in December of 2019 and continuing through August of 2020, the Drug Enforcement Administration received authorization to conduct a Title III wiretap investigation into that organization, and Castillo-Lopez was intercepted agreeing to supply kilograms of cocaine to his co-conspirator, whose role was to redistribute Castillo-Lopez’s cocaine to lower-level distributors for resale in the cities of New Castle and Farrell. In September 2020, investigators executed a search warrant at Castillo-Lopez’s residence and recovered cocaine, bulk United States currency, and a kilogram wrapper.
In imposing the sentence, Judge Ranjan referenced the severity of the offense.
Assistant United States Attorneys Mark V. Gurzo and Katherine C. Jordan prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration in Pittsburgh, Columbus, and Harrisburg, Pennsylvania; Homeland Security Investigations in Pittsburgh and Orlando, Florida; Internal Revenue Service-Criminal Investigations; United States Postal Service in Columbus; Pennsylvania Office of Attorney General; Lawrence County Drug Task Force–Special Investigations Unit; and New Castle Police Department for the investigation leading to the successful prosecution of Castillo-Lopez.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Columbia Man Sentenced to Federal Prison for Firearm ChargeRead the Press Release
COLUMBIA, S.C. — Paul James, III, 35, of Columbia, was sentenced to 15 years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that on Aug. 19, 2020, James shot a man outside of a Percival Road gas station after the man and James’ girlfriend had an argument. The shooting was captured on the gas station’s video surveillance system. Both James and his girlfriend left the scene. After reviewing the surveillance video, Richland County Sheriff’s Department investigators obtained a search warrant for James’ girlfriend’s address. When investigators executed the search warrant, they found a 9mm handgun inside of a child’s toybox. James claimed ownership of the gun.
James was prohibited from possessing a firearm and ammunition based on previous convictions in 2008 for assault and battery of a high and aggravated nature and three convictions in 2018 for distributing heroin and crack cocaine. James was also convicted in 2008 and 2016 for unlawfully carrying a pistol. James was on probation when the shooting incident occurred.
United States District Judge Mary Geiger Lewis sentenced James to 15 years in prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Richland County Sheriff’s Department (RCSD). Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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