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13 March 2024
Cheyenne man sentenced for producing and possessing child pornographyRead the Press Release
Cody Foster, age 29, of Cheyenne, Wyoming, was sentenced today to 60 years in prison, with a lifetime of supervised release to follow if he were ever to be released from his term of imprisonment, for producing and possessing child pornography. Foster was indicted in Sept. 2023 and pled guilty on Oct. 30, 2023, to six counts of producing child pornography and one count of possessing child pornography.
Restitution is mandatory and may include expenses related to the victim’s care and treatment. The amount will be determined at a hearing on Jun. 3. U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Mar. 13.
According to court documents, on Aug. 9, 2023, FBI Cheyenne was notified by the FBI’s Operation Rescue Me/Endangered Child Alert Program team of newly produced child pornography on a dark web thread and a potential child victim in Cheyenne. A joint investigation was opened with Wyoming Internet Crimes Against Children Task Force (ICAC) and the FBI based on the images they received from the tip line.
The investigation led agents straight to Cody Foster, a trusted friend of the victim’s mother. Foster exploited their relationship to gain access to the prepubescent child victim. During a search of his residence and devices, agents uncovered hundreds of images and videos of child pornography, including depictions of sadomasochistic activity involving infants and toddlers. Agents also discovered the images and videos of the victim that were initially identified through the tip line. The evidence collected clearly showed the rape and sexual abuse of the prepubescent child victim by Foster, who had a distinct tattoo on his wrist that could be seen in the abusive images and videos he produced of the child victim.
Agents identified Foster and arrested him within 24 hours of receiving the initial tip from FBI’s Operation Rescue Me/Endangered Child Alert Program team.
“Our office has no higher responsibility than the protection of children from sexual exploitation,” said United States Attorney Nicholas Vassallo. “This defendant’s conduct was utterly reprehensible, but swift action by law enforcement put an end to it, and the 60-year sentence imposed by the court will prevent him from causing further harm to our community.”
“The facts of this case are horrific, and no sentence will fully heal the trauma of this victim. But the penalty in this case can send a message to others, and it will keep this predator from abusing more children,” said FBI Special Agent in Charge Mark Michalek. “The FBI will continue to protect the most vulnerable among us from those who seek to take advantage of their innocence.”
“This case highlights the difficult work agents across the state are involved in every day and the commitment of the Division of Criminal Investigation to aggressively pursue anyone who exploits or is a danger to our children. These investigations are conducted by a team of state, local and federal law enforcement officers. In Wyoming, we are fortunate that excellent partnerships exist between all our law enforcement agencies. It is because of these partnerships and the dedication of our law enforcement professionals and prosecutors that the results achieved in this court today are possible,” said Ronnie Jones, director of the Wyoming Division of Criminal Investigation.
This crime was investigated by the Federal Bureau of Investigation and the Wyoming Division of Criminal Investigation’s Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Christyne Martens.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat child sexual exploitation and abuse. 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.
Case Number: 23-CR-00141-SWS
Casper man sentenced for possession with intent to distribute methamphetamineRead the Press Release
Tobias Anthony Smith, 42, of Riverton, Wyoming, was sentenced to 70 months’ imprisonment for possession with intent to distribute methamphetamine.
According to court documents, in June of 2023, the Wyoming Division of Criminal Investigation (DCI) learned that Smith was selling methamphetamine. Agents then completed a controlled purchase of methamphetamine from Smith. On Aug. 24, 2023, law enforcement served a search warrant on Smith’s Riverton residence. When interviewed, Smith told agents they would find methamphetamine in the house. Agents searched the property and found 386 grams of methamphetamine along with a scale and packaging material consistent with drug distribution.
Smith was indicted in Sept. 2023 and pleaded guilty on Dec 1, 2023. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Mar. 8.
This case was investigated by DCI and the FBI. It was prosecuted by Assistant U.S. Attorney Michael J. Elmore.
Case No. 23-CR-00138
Camden County Businessman Admits Filing False Tax ReturnsRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, businessman admitted filing false tax returns that failed to report all of his income, U.S. Attorney Philip R. Sellinger announced today.
Anthony Cardellia, 59, of Blackwood, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court on March 12, 2024, to an information charging him with one count of making and subscribing a false income tax return.
According to documents filed in this case and statements made in court:
Barreras owned, operated, and worked at home improvement contractors in the Philadelphia metropolitan area. Cardellia admitted that during 2016 and 2017, he used a commercial check casher to negotiate over $1.9 million of revenue checks for the home improvement businesses at which he worked. Cardellia kept about $190,000 of the cash proceeds, which he failed to report as income on his individual income tax returns. Cardellia admitted that he caused a tax loss of more than $45,000.
The count of making and subscribing a false tax return carries a maximum penalty of three years in prison and a fine of up to $250,000. Sentencing is scheduled for July 18, 2024.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
cardellia.information.pdfBronx Man Sentenced to 15 Years in Prison for Distributing Fentanyl in Exchange for Sex with A Minor and Causing the Death of A 19-Year-Old VictimRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that VIRGIL WARDLOW was sentenced today to 15 years in prison for paying for commercial sex with a minor using fentanyl-laced pills that caused the death of a 19-year-old victim. WARDLOW previously pled guilty to one count of distribution of narcotics before by U.S. District Judge Mary Kay Vyskocil, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “The consequences of the defendant’s conduct are heart-wrenching: The defendant paid for sex with a 16-year-old victim using fentanyl-laced pills, which the victim’s 19-year-old friend then ingested, poisoning her and causing her death. Today’s sentence sends a powerful message to those who traffic deadly drugs to vulnerable victims and demonstrates that this Office will seek justice for families facing the horrific tragedy of losing a loved one to fentanyl poisoning and for victims of child sexual exploitation.”
According to court filings and statements made in court proceedings:
WARDLOW engaged in a pattern of paying for commercial sex with black market pills that contained fentanyl. On or about March 25, 2023, at a hotel room in the Bronx, New York, WARDLOW provided two of those pills to a 16-year-old female (“Victim-1”) in exchange for sex with Victim-1. After WARDLOW had sex with Victim-1 and WARDLOW left the hotel room, Victim-1 and her 19-year-old female friend (“Victim-2”) ingested the pills provided by WARDLOW. Thereafter, Victim-1 became ill, and Victim-2 became unconscious and died of a drug poisoning.
Between at least on or about February 8, 2023, and on or about April 24, 2023, WARDLOW exchanged several messages with other individuals in which WARDLOW offered to provide pills in exchange for sex or money. WARDLOW sent these messages using an anonymized cellphone number that masked his identity from his intended victims.
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In addition to the prison term, WARDLOW, 31, of the Bronx, New York, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $17,000 in connection with the funeral expenses of Victim-2.
Mr. Williams praised the outstanding investigative work of the New York State Police, the New York City Police Department, and Special Agents from the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit and Narcotics Unit. Assistant U.S. Attorney Jeffrey W. Coyle is in charge of the prosecution.
Bridgeport Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ZAN HAIRSTON, JR., 26, of Bridgeport, pleaded guilty today before U.S. District Judge Sarala V. Nagala in Hartford to unlawful possession of a firearm by a felon.
According to court documents and statements made in court, on January 9, 2023, the Bridgeport Police Department received a report that Hairston had unlawfully entered a residence of a former girlfriend, searched through her belongings and, during a subsequent FaceTime call with her, threatened her by brandishing what appeared to be a firearm. When officers located and approached Hairston on Union Avenue in Bridgeport, Hairston attempted to flee. He was apprehended a short distance away, and officers recovered from the ground near Hairston a Taurus TX .22 firearm equipped with a mounted laser and loaded with an extended magazine containing 20 rounds of ammunition, a Glock 26 Gen4 firearm loaded with one round, and a Glock magazine with 13 rounds of ammunition.
Hairston’s criminal history includes felony convictions in Connecticut for conspiracy to commit robbery in the first degree with a firearm, burglary in the second degree, criminal possession of a firearm, and illegal possession of a weapon in a motor vehicle. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.
Judge Nagala scheduled sentencing for June 7, at which time Hairston faces a maximum term of imprisonment of 15 years.
Hairston has been detained since his federal arrest on February 22, 2023.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Bridgeport Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Lauren Clark through Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Berkeley County Man Admits to Elder Financial AbuseRead the Press Release
MARTINSBURG, WEST VIRGINIA – An Inwood, West Virginia man has admitted to fraudulently taking over a quarter of a million dollars from his father.
Joseph Beach, age 54, pled guilty to one count of wire fraud. According to court documents and statements made in court, Beach was the fiduciary for his father, who is under the care of a veterans’ care facility and receives monthly benefits. As the fiduciary, Beach received his father’s veteran’s disability, retirement, and social security payments but used them for his own benefit. The total amount of funds taken by Beach was $253,867.12.
“It is always sad when older West Virginians are victimized by their own family members,” said United States Attorney William Ihlenfeld. “We will continue to aggressively pursue those who steal from their loved ones in order to enrich themselves.”
Assistant U.S. Attorney Eleanor Hurney is prosecuting the case on behalf of the government.
The Veterans Affairs Office of Inspector General, the U.S. Office of Personnel Management, and the Social Security Administration investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bangor Man Sentenced to 14 Years After Being Caught with 400g of Fentanyl, 30g of Cocaine and a Firearm while Out on BailRead the Press Release
BANGOR, Maine: A Bangor man was sentenced today in U.S. District Court in Bangor for possessing controlled substances with the intent to distribute and being a felon in possession of a firearm.
U.S. District Judge John A. Woodcock, Jr. sentenced Allen Henry, 49, to 168 months in prison followed by five years of supervised release. Henry pleaded guilty May 23, 2023.
According to court records, in May 2022, officers with the Brewer Police Department responded to a call for service and located Henry in a parked vehicle. A record check revealed Henry had an active warrant for his arrest and active bail conditions stemming from a state charge. The bail conditions prohibited him from using or possessing any alcohol or illegal drugs. Upon conducting a bail check to ensure Henry was compliant with conditions, officers located more than 400 grams of fentanyl, approximately 30 grams of cocaine base and a firearm in his vehicle. Henry has a previous 2013 state conviction that prohibits him from possessing firearms.
The U.S. Drug Enforcement Administration, Maine Drug Enforcement Agency, and the Brewer Police Department investigated this case.
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Army Hotel Manager in South Korea Pleads Guilty to Conspiracy to Steal Government Property and Commit BriberyRead the Press Release
A U.S. citizen who served as U.S. Army hotel manager in South Korea pleaded guilty yesterday to a conspiracy involving the theft of government property and influencing the award of hotel contracts in exchange for bribes from a South Korean company.
According to court documents, Bon Ku, 52, was employed by the Dragon Hill Lodge (DHL), which is owned by a U.S. Army base in Seoul, South Korea. DHL is one of five resorts operated by the Department of Defense under the Armed Forces Recreation Centers program. Between 2014 and 2020, Ku conspired with Donald Gower, a U.S. citizen who was also a manager at DHL, to engage in two schemes to convert payments for DHL’s recyclable goods to their own use. To carry out these schemes, Ku directed DHL employees to engage in tasks outside the scope of their normal employment duties, resulting in the United States paying them to perform tasks that benefited Ku and Gower.
Between 2014 and 2021, Ku was also involved in four additional schemes in which he influenced the award of contracts valued at over $9 million in exchange for bribes from four South Korean companies, one of which was part of the conspiracy to which Ku pleaded guilty. As part of the bribe scheme to which Ku pleaded guilty, DHL awarded a contract to a South Korean company to, among other things, clean its loading dock. Prior to awarding this contract, Ku had an agreement with the company under which he would receive approximately 10-20% of the value of the contracts that were awarded by DHL. After entering into this agreement, Ku made a positive recommendation to DHL officials regarding the company’s ability to perform on the contract to influence its award to the company. Ku received payments related to this agreement from the company in his South Korean bank account, after which Ku split the payments with Gower.
Ku pleaded guilty to a dual-object conspiracy to commit theft of government property and bribery of a public official. He is scheduled to be sentenced on June 18 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. As part of a global resolution, the government will move to dismiss an indictment in the U.S. District Court for the District of Columbia in which Ku is charged with conduct related to one of the additional schemes.
On Sept. 15, 2022, Gower pleaded guilty to conspiracy to commit theft of government property. He is scheduled to be sentenced on Aug. 8 and faces a maximum penalty of five years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; Acting Assistant Director in Charge Amir Ehsaei of the FBI Los Angeles Field Office; and Special Agent in Charge Keith K. Kelly of the Department of the Army Criminal Investigation Division’s (Army-CID) Fraud Field Office made the announcement.
The FBI and Army-CID are investigating the case.
Trial Attorneys Matt Kahn and Brandon Burkart of the Criminal Division’s Fraud Section are prosecuting the case.
12 March 2024
Woman Charged with Robbing Waterbury and Bristol Banks in FebruaryRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven returned an indictment today charging HEATHER BROWN, 49, last residing in New Haven, with robbing three Connecticut banks last month.
The indictment alleges that Brown robbed the Wells Fargo Bank located at 800 Wolcott Street in Waterbury on February 6, 2024; the Liberty Bank located at 1030 Hamilton Avenue in Waterbury on February 7, 2024; and the Webster Bank located at 575 Farmington Avenue in Bristol on February 9, 2024.
Brown has been in custody since her arrest on state charges on February 9, 2024.
The indictment charges Brown with three counts of bank robbery, which carries a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation and the Waterbury, Bristol, and Southington Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Nathan J. Guevremont.
U.S. Attorney’s office collects approximately $11-million dollars in civil and criminal actions in fiscal year 2023Read the Press Release
BUFFALO, NY - U.S. Attorney Trini E. Ross announced today that the Western District of New York collected $10,990,785.85 in criminal, civil and forfeiture actions in Fiscal Year 2023. Of this amount, $3,245,581.30 was collected in criminal actions, $4,374,170.95 was collected in civil actions, and $3,036,996 was collected in forfeiture actions. As a result, over $3,224,551.24 was given to victims of crime in the past year, while $1,712,236.00 was provided as aid to state and local law enforcement agency partners who worked with the United States Attorney’s Office on criminal cases.
In making the announcement, U.S. Attorney Ross specifically credited the work done by the Asset Recovery Division, under the leadership of Chief Kevin D. Robinson and Deputy Chief Grace Carducci. “My Office continues to focus on crime prevention, protecting the rights of all victims and collecting restitution and monetary penalties,” stated U.S. Attorney Ross. “We live in a time where victimization crimes against vulnerable people, including children and the elderly, are on the rise. With advancements in technology and the use of social media, my office has devoted considerable time and resources towards adjusting our efforts to stay ahead of the perpetrators. Our goal is to make sure that those committing crimes do not become unjustly enriched from their illegal actions and to make the victims whole.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
In addition to recovering funds, 27 dangerous firearms and 253 rounds of ammunition were forfeited in FY 2023 as instrumentalities of criminal conduct in drug and violent gang cases. Thirty-one computers and electronic media devices—most related to child exploitation cases—were also forfeited.
The following cases are examples of successful forfeiture and affirmative civil enforcement cases concluded this past year in the Western District of New York:
• US v. 399 Whispering Pines Circle, Greece, NY - The USAO filed a verified civil forfeiture complaint against 399 Whispering Pines Circle, in Webster, as property of value traceable to proceeds furnished in exchange for a controlled substance. The owner is alleged to have conspired with others known and unknown, to possess with intent to distribute and to distribute Schedule II controlled substances, specifically cocaine and fentanyl, in the greater Rochester area. As a result of a settlement agreement, the District Court ordered the forfeiture of the defendant real property to the Government. The net equity value of the real property is valued at approximately $119,000.
• US v. Darnell Manning - The defendant conspired with others known and unknown, to possess with intent to distribute and to distribute Schedule II controlled substances, specifically cocaine and fentanyl, in the greater Rochester area. Manning pleaded guilty and agreed to forfeit over $447,824.00 in seized assets, including United States currency, jewelry, a vehicle, two firearms and rounds of seized ammunition.
• United States ex rel. DeGroat v. Beyond Reps, Inc. et al. - Beyond Reps, Inc. d/b/a IronRod Health and Cardiac Monitoring Services has agreed to pay $673,200.92 to resolve allegations arising under the False Claims Act that they submitted false claims to federal health care programs relating to remote cardiac monitoring services. IronRod is a healthcare solutions company with headquarters in Phoenix, Arizona. IronRod provides remote cardiac monitoring services, among other services. The Government alleged that between January 1, 2018 and April 30, 2021, IronRod utilized technicians who lacked required credentials to conduct remote cardiac monitoring readings. The government also alleged that between June 1, 2018 and August 20, 2018, IronRod misrepresented that it performed services in New York State in order to obtain higher reimbursements from Medicare for remote cardiac monitoring services.
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Two Former City of Miami Police Department Employees Plead Guilty to COVID-19 Relief FraudRead the Press Release
MIAMI – Two former City of Miami Police Department (MPD) employees pled guilty for their involvement in separate COVID-19 relief fraud cases.
U.S. v. Sheana Haslem, Case No. 24-20037-Cr-WILLIAMS/GOODMAN
On March 6, 2024, Sheana Haslem, 38, who was formerly a MPD Police Staffing Specialist, pled guilty to wire fraud in connection with her fraudulent applications for a Paycheck Protection Program (PPP) loan and an Economic Injury Disaster Loan (EIDL) advance, before U.S. District Judge Kathleen M. Williams.
According to the facts admitted at the change of plea, on July 6, 2020, Haslem, who at the time was employed full-time by the MPD, submitted and with the assistance of an associate, caused to be submitted, to the U.S. Small Business Administration (SBA), a fraudulent EIDL application claiming to be an independent contractor and the 100% owner of a hair and nail salon business operating under her own name. That EIDL application falsely certified that for the 12-month period prior to January 31, 2020, Haslem’s business had gross revenues of approximately $89,993 and 15 employees. As a result of this fraudulent application, Haslem obtained from the SBA a $10,000 EIDL advance.
Subsequently, on February 27, 2021, Haslem submitted, and with the assistance of the same associate, caused to be submitted, a fraudulent PPP loan application claiming to be an independent contractor operating a business under her own name. That application falsely represented the business’ average monthly payroll as being $8,333, and as part of the application process, Haslem submitted a fraudulent IRS Form 1040, Schedule C, for tax year 2019, claiming she had a security officer business that had a gross income of $102,874, no expenses, and a net profit of $102,874. As a result of this fraudulent application, Haslem obtained a $20,832 PPP loan from an SBA approved lender.
Haslem is scheduled for sentencing on May 28, before Judge Williams in Miami, Florida, where she faces a maximum sentence of twenty years in prison.
U.S. v. Keandra Carter, Case No. 23-20475-Cr-WILLIAMS/GOODMAN
On February 13, 2024, former MPD Public Service Aide Keandra Carter, 35, pled guilty before Judge Williams to wire fraud in connection with her fraudulent application for a PPP loan.
According to the facts admitted at the change of plea, on April 4, 2021, Carter, who was working as a full-time MPD Public Service Aide, submitted a false and fraudulent PPP loan application claiming to be a sole proprietor operating a business under her own name. That PPP loan application falsely and fraudulently represented that her sole proprietorship’s 2019 gross income was $1,100,000. In support of that application, Carter submitted a fraudulent IRS Form 1040, Schedule C, for tax year 2019, falsely stating that she was a “hair braider” and that her business had a gross income of $1,100,000. As a result of this false and fraudulent application, Carter obtained a $20,833 PPP loan from an SBA-approved PPP lender based in Pennsylvania.
Carter is scheduled for sentencing on May 2, before Judge Williams in Miami, where she faces a maximum sentence of up to 20 years in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite, SBA Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, announced the guilty pleas.
The FBI’s Miami Area Corruption Task Force, which includes task force officers from MPD’s Internal Affairs Section, and the SBA-OIG investigated the cases. Assistant U.S. Attorney Edward N. Stamm is prosecuting the cases.
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 at http://pacer.flsd.uscourts.gov.
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Two Florida Residents Plead Guilty to Conspiring to Sell and Export Aircraft Parts with Counterfeit Airworthiness Approval TagsRead the Press Release
MIAMI - On March 6, Daniel Navarro, 50, of Miami Lakes, Florida, the former Vice President of, Sofly Aviation Services (Sofly), an aviation parts distribution company, and Jorge Guerrero, 71, of Hialeah, Florida, a Procurement & Asset Management Specialist for Sofly, both pled guilty to one count of conspiracy to defraud the United States.
“The prosecutors in our office, alongside our Department of Defense and Department of Transportation partners, are committed to protecting foreign and domestic airlines from people peddling aircraft parts that they falsely and dangerously claim to be airworthy,” stated U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Everyone must comply with established regulations in order to protect travelers and preserve aviation safety.”
According to court records, beginning in 2012 and continuing into 2019, Navarro and Guerrero purchased “as removed” aircraft parts and resold them using certificates that falsely claimed the parts to be airworthy under the regulations of the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA). The fraudulent approval tags represented those “as removed” parts to be overhauled, tested/inspected or repaired, which misled their buyers into believing them to be airworthy. Most often, Navarro and Guerrero would use an FAA approved repair station’s FAA certificate number to falsely certify the part to have been overhauled, tested/inspected or repaired by that repair station, when in fact they never were. According to the court documents, those parts were sold to Canadian airlines and a U.S. Department of Defense contractor.
“Falsifying the airworthiness of aircraft parts poses a significant danger to the public and our service members,” said Special Agent-in-Charge Darrin K. Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “These guilty pleas demonstrate our commitment to root out corruption and bringing to justice those who compromise the safety and readiness of aircraft for personal gain.”
“The guilty pleas in this investigation should send a clear signal that nefarious schemes that comprise the integrity of the aviation industry’s supply chain for commercial and military aircraft will not be tolerated,” said Joseph Harris, Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General (DOT OIG), Southern Region. “We will continue working with our federal, law enforcement, and prosecutorial partners to disrupt fraudulent activities that adversely impact aviation safety.”
A sentencing hearing is scheduled for Navarro and Guerrero on May 23 before U.S. District Judge Federico A. Moreno. Navarro and Guerrero each face a maximum term of imprisonment of five years, followed by a term of supervised release of up to three years, for the offense of conviction. The court may also impose a fine of up to $250,000 and must order restitution. As part of the plea agreement, Navarro and Guerrero agreed to voluntarily forfeit any property acquired as a result of the offense. The judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
DOT OIG conducted this investigation jointly with DCIS and with assistance from the FAA.
Assistant U.S. Attorney Zachary Keller is prosecuting the case. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under Case No. 23-CR-20416.
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Two Charlotte Businessmen Convicted at Trial of Failing to Account for and Pay over Trust Fund TaxesRead the Press Release
CHARLOTTE, N.C. – A Charlotte jury has returned a guilty verdict against two Charlotte businessmen for failing to account for and pay over to the Internal Revenue Service (IRS) more than $150,000 in trust fund taxes over five quarters in 2016 and 2017. Richard Brasser, 57, and Gregroy Gentner, 52, both of Charlotte, were convicted of multiple counts of failing to account for and pay over the trust funds taxes.
Donald "Trey" Eakins, Special Agent in Charge of the IRS, Criminal Investigation Division (IRS-CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
“When employers willfully fail to collect, account for and deposit with the IRS employment taxes due, they are stealing from the United States Treasury. In addition, employers who willfully fail to comply with their tax obligations unlawfully gain an unfair advantage over their honest competitors,” said U.S. Attorney King.
“Business owners such as Brasser and Gentner have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS,” said Special Agent in Charge Eakins. “The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues anyone who engages in tax fraud schemes such as these.”
According to evidence presented at trial, witness testimony, and other court documents, rFactr was a company with offices in Charlotte, that sold software and provided ongoing support for that software to companies that were leveraging their social networks as part of their sales platforms. Brasser was rFactr’s Chief Executive Officer and Gentner the Chief Operating Officer. Trial evidence established that from 2015 through 2017, Brasser and Gentner caused rFactr to collect more than $600,000 in trust fund taxes from the wages of its employees, but did not account for the taxes by filing Forms 941 with the IRS. Moreover, the defendants did not pay over the withheld taxes to the IRS in a timely manner.
According to trial evidence, Brasser and Gentner had a history of noncompliance with rFactr’s employment tax obligations. Specifically, between 2013 and 2017, Brasser and Gentner failed to comply with rFactr’s employment tax obligations by failing to timely file rFactr’s employment tax returns and failing to timely pay over to the IRS rFactr’s employment taxes. In total, between 2015 and 2017, Brasser and Gentner caused rFactr to owe more than $1.1 million in employment taxes.
At sentencing, Brasser and Gentner each face a maximum sentence of five years in prison for each count of failing to account for and pay over the trust funds taxes.
IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Caryn Finley and Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
State Prisoner Indicted for Threatening to Kill A Federal JudgeRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces the return by a grand jury of an indictment charging Marcus Pratt (38, Crestview, Florida) with three counts of mailing threatening communications and three counts of influencing, impeding, or retaliating against a federal judge. Pratt faces a maximum penalty of 10 years in federal prison on each count. The indictment also notifies Pratt that the United States intends to forfeit any assets alleged to be traceable to proceeds of the charged offenses.
According to the indictment, Pratt sent a handwritten letter through the U.S. Postal Service dated August 2, 2023, addressed to the federal courthouse in Miami, threatening that his associates would kill a certain United States District Judge. Pratt sent another hand-written letter dated September 23, 2023, threatening that Pratt’s associates were going to kill the judge and whoever was at his house when they got there. Finally, Pratt sent a handwritten letter dated October 10, 2023, telling the judge that the defendant’s associates would kill him very soon. All letters were signed by Pratt and threatened to kill the judge due to the performance of his official duties and with the intent to retaliate against the judge on the account of the performance of his official duties.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
The case was investigated by the Federal Bureau of Investigation and the United States Marshal Service. It is being prosecuted by Assistant United States Attorneys Rachel Lasry and Kirwinn Mike.
Stanberry Man Indicted for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Stanberry, Mo., man was indicted by a federal grand jury today for illegally possessing an unregistered sawed-off shotgun.
Erin L. Graves, 44, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Graves was in possession of a Remington 20-gauge shotgun, which had a barrel of less than 18 inches in length, on Jan. 15, 2024. Graves is charged with one count of being a felon in possession of a firearm and one count of possessing an unregistered firearm.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Graves has five prior felony convictions for stealing, two prior felony convictions for driving while suspended or revoked, two prior felony convictions for tampering with a motor vehicle, two prior felony convictions for burglary, and prior felony convictions for possession of a controlled substance and resisting arrest.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Jessica L. Jennings. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Gentry County, Mo., Sheriff’s Office, and the Northwest Missouri Drug Task Force.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
St. Charles Parish Man Pleads Guilty to Fentanyl DistributionRead the Press Release
NEW ORLEANS, LOUISIANA – AMARYD DOWNING, age 37, of Hahnville, La. pled guilty on March 5, 2024 to three (3) counts of distribution of a quantity of a mixture and substance containing a detectable amount of fentanyl,in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C), announced U.S. Attorney Duane A. Evans.
According to court documents, on May 8, May 11, and May 22, 2023, St. Charles Parish detectives conducted an investigation during which they made controlled purchases of gram quantities of drugs from DOWNING in the Hahnville area. The drugs from each purchase tested positive for fentanyl and heroin. After making the controlled purchases, detectives arrested DOWNING.
If convicted, DOWNING faces a maximum term of twenty (20) years imprisonment, up to a $1,000,000.00 fine, at least three (3) years of supervised release and a mandatory $100.00 special assessment fee.
This case was investigated by the federal Drug Enforcement Agency and the St. Charles Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.
Spokane Drug Dealer Involved in Large-Scale Drug Trafficking Conspiracy and Violent Spokane-Area Shooting Sentenced to 11 Years in Federal PrisonRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Amy Katherin Riggs, 36, of Dayton, Washington, was sentenced after pleading guilty to Conspiracy to Distribute 500 Grams or More of Methamphetamine and 400 Grams or More of Fentanyl. U.S. Senior District Judge Rosanna Malouf Peterson imposed a sentence of 132 months in prison to be followed by 5 years of supervised release.
According to court documents and information presented at the sentencing hearing, the Drug Enforcement Administration (DEA) was investigating a drug trafficking organization with significant ties to the Eastern District of Washington. Investigators developed information that Riggs was a key facilitator for the organization as well as one of its biggest clients. The evidence showed Riggs was obtaining and distributing approximately $125,000 worth of heroin, methamphetamine, and fentanyl pills into the community per month. Riggs would receive between one-half to one kilogram of heroin, up to 10,000 fentanyl pills, and one to two pounds of methamphetamine.
When members of the organization were arrested by law enforcement, Riggs would attempt to determine if they were “rats,” meaning cooperating. She also would go to organization locations where search warrants were executed and collect the search warrant returns (documents required to be left by law enforcement) , itemizing the items seized. She also would take anything of value law enforcement might have inadvertently missed. For example, when a search warrant was executed at an organization stash house on Maxwell Avenue in Spokane on January 2022, , law enforcement located over three kilograms of fentanyl pills, a half pound of methamphetamine, a quarter pound of heroin, and several firearms. On the same date, a drug courier was arrested, as he came out of a stash house on the South Hill, with over two kilograms of methamphetamine, just shy of two kilograms of fentanyl pills, a large amount of U.S. Currency, and multiple firearms. Following the execution of these search warrants, Riggs reported to the leader of the organization in Mexico the items that were seized and checked the jail rosters to ensure the individuals were booked in jail – noting to the leader that if they were not, they knew the organization had a “rat” in its inner circle.
In addition, Riggs became a self-styled enforcer for the organization, to earn favor with the leader of the organization, who resides in Mexico. For example, on February 6, 2022, a drug courier for the organization was delivering approximately fifteen-to twenty pounds of methamphetamine and approximately 50,000 fentanyl-laced pills to a man named Brady Baughman in the Spokane area. Baughman tried to pay the courier for the drugs with fake U.S. Currency. The courier would not accept the fake money, so Baughman robbed the drug courier and sped off in his vehicle. Another member of the drug organization, who was present at the robbery, had left her iPad in Baughman’s vehicle and was able to track the device’s location. The couriers then called the leader of the drug organization in Mexico and informed him of the robbery. The leader then asked Riggs to get the drugs back.
Using the iPad’s location, which was relayed to her by the leader in Mexico, Riggs was able to track Baughman’s location. She also was able to text at least three other individuals to assist in locating Baughman, to include Daniel Skjold and her paramour Jody Wallette. In those text messages, Riggs sent details of Baughman’s identity, vehicle, and suspected location.
A short time later, a 911 caller reported an SUV-type vehicle shooting at another vehicle near the intersection of Nettleton and Rowan in Spokane. Responding law enforcement located seven 9mm shell casings in the area. Around that same time, Riggs’s Range Rover SUV was captured on camera in the area of the shooting. Other surveillance video showed a vehicle consistent with the Riggs’s vehicle traveling in the area and captured what appeared to be images of the driver shooting a handgun out the window.
Baughman was later apprehended by Spokane Police, and large kitty litter containers were recovered containing the methamphetamine and fentanyl pills stolen from the runner. Skjold was later arrested on multiple separate state charges stemming from a domestic-violence related drive-by-shooting case, which also involved unlawful possession of a firearm and witness tampering. Skjold later was sentenced to approximately 20 years in state prison for her role in the shooting. Wallette was later arrested on separate federal drug trafficking charges and was sentenced to 20 years in federal prison.
Later on in the investigation, in April of 2022, investigators located a new organization stash house on Nebraska Avenue in Spokane. On several occasions, Riggs was observed arriving and exiting the stash house. Investigators also observed Riggs meet with individuals identified as drug users and engaging in activities consistent with distributing drugs.
On April 13, 2022, a search warrant was executed at the Nebraska Avenue stash house. Riggs was at the home at the time the warrant was executed. During the search, agents found a small of amount of methamphetamine, and ecstasy pills inside Riggs’s purse. In the living room, agents located a quarter pound of methamphetamine sitting on a coffee table. Agents also located two 9mm pistols hidden behind a false wall in the residence. A few days prior to the execution of the search warrant, a separte warrant was executed on Rigg’s Range Rover and $13,000 in U.S. Currency, and the cell phone used during the robbery were located, as well as a .22 caliber firearm that was located in a backpack with paperwork for Riggs as well as Wallette.
An additional stash house was located in Spokane on Walnut Street in May 2022. Physical surveillance revealed a drug courier was utilizing a Lexus vehicle, registered to Riggs, to distribute drugs in the Spokane area. Law enforcement stopped the drug courier as they were leaving stash house, resulting in the recovery of more than two pounds of methamphetamine, six firearms, and around 3,000 fentanyl pills.
During sentencing, Judge Peterson noted Riggs was engaged in “very egregious” conduct by moving massive amounts of drugs into the community – drugs that destroy families – and did so while armed, which increases the danger to all. Judge Peterson also noted Riggs’ text messages showed the clear enthusiastic involvement Riggs had for her continued participation in the organization. In pronouncing the eleven year sentence, Judge Peterson also stated her concern with Riggs’s stated intent to continue her relationship with Wallette, warning Riggs that she will be judged by the company she keeps, and her continued association with him would be “determinantal to [her] future.”
“Ms. Riggs engaged in trafficking significant amounts of illegal narcotics in our community. She also had a reputation as someone who would use violence to accomplish the bidding of drug trafficking organizations,” said U.S. Attorney Waldref. “My office is committed to stopping the flow of deadly narcotics into our neighborhoods. We will continue to work tirelessly with our law enforcement partners to investigate and prosecute dangerous individuals involved with drug trafficking to make our communities safer and stronger.”
“Ms. Riggs played a key role in a drug trafficking organization the dealt large amounts of fentanyl and methamphetamine to our community,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The DEA and our partners worked hard in this case to stop her and this sentence will protect our community from the deadly trifecta of fentanyl, methamphetamine, and firearms that Ms. Riggs brought to our area.”
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Spokane Police Department, and the Spokane County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Caitlin Baunsgard.
Sioux Falls Man Sentenced to 21 Years in Federal Prison in Connection with Fentanyl DeathRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls man convicted of one count of Distribution of a Controlled Substance Resulting in Death and two counts of Possession of a Controlled Substance with Intent to Distribute. The sentencing took place on March 11, 2024.
Armando Angel Cheshier, 25, was sentenced to 21 years in federal prison, followed by three years of supervised release on the count of Distribution of a Controlled Substance Resulting in Death. He was also sentenced to 20 years in federal prison, followed by three years of supervised release on both counts of Possession of a Controlled Substance with Intent to Distribute. All sentences are to run concurrently with one another. He was also ordered to pay restitution in the amount of $12, 457.85 and a $300 special assessment to the Federal Crime Victims Fund.
Cheshier was indicted by a federal grand jury in June of 2022. He was found guilty on all counts by a jury on November 22, 2023.
Cheshier distributed fentanyl and Xanax to the victim in this case, which ultimately resulted in her death, due to the fatal amounts of fentanyl in her system. The defendant and victim in this case were friends and had spent the night together, after both ingesting multiple illegal narcotics. The defendant awoke the next day to find the victim lying lifeless in his bed. After Cheshier traveled across town to obtain Narcan to administer to the victim, the authorities were then called, and pronounced the victim deceased at the scene. An interview of the defendant following the incident revealed that he had not only provided the fentanyl that caused the overdose, but that he had also ingested the remaining pills prior to authorities arriving at the scene. Prior to the date of the overdose incident, Cheshier had traveled to Minneapolis to obtain 100 fentanyl pills, which were for both personal use and distribution in the Sioux Falls area.
This case was investigated by the Sioux Falls Area Drug Task Force and the Drug Enforcement Administration. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Cheshier was immediately remanded to the custody of the U.S. Marshals Service.
Sinaloa Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE –Jose Jesus Lopez-Verduzco, 54 years old, of Sinaloa, Mexico, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty for conspiring to distribute and possess with intent to distribute 5 kilograms or more of cocaine and 1,000 kilograms or more of marijuana, announced United States Attorney Clifford D. Johnson.
Lopez-Verduzco was sentenced to 180 months in prison followed by 5 years of supervised release.
According to documents in the case, Lopez-Verduzco was a leader in a drug organization receiving large drug shipments from the Sinaloa Cartel in Mexico for distribution in Northeast Indiana. During the service of a search warrant at a house in Columbia City in August of 2018, agents seized approximately 14 kilograms of cocaine, about 200 pounds of marijuana, and 9 firearms.
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 Attorneys Anthony W. Geller and Stacey R. Speith.
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.
Shiprock Man Charged with Second Degree MurderRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Morrie Lee Begaye appeared in federal court on an indictment charging him with second degree murder. Begaye, 36, of Shiprock, and an enrolled member of the Navajo Nation, will remain in custody pending trial which has not been scheduled.
According to the indictment, on June 26, 2022, Begaye unlawfully killed John Doe with malice aforethought
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted of the current charge, Begaye faces up to life imprisonment.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant U.S. Attorney Brittany DuChaussee is prosecuting the case.
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Sex Traffickers Convicted of Cross-Country Exploitation of a MinorRead the Press Release
MIAMI – On March 8, a federal trial jury in Miami found Xavier Latrell Smith, 34, and Jayla Denice Welch, 22, both of Texas, guilty of carrying out a sex trafficking conspiracy involving a minor victim.
Smith and Welch were convicted of conspiracy to commit sex trafficking, sex trafficking of a minor, transporting a minor to engage in sexual activity, and coercion and enticement of a minor to engage in sexual activity. In addition, Smith was convicted of two counts of commission of a sex offense by a registered sex offender.
During the five-day trial, the government put on evidence that showed Smith, a registered sex offender, and Welch lured the minor victim to engage in sexual acts with false promises of a better life. Smith and Welch then posted commercial sex ads of the minor victim online as they travelled with the victim from Texas to Louisiana to Florida, where she was trafficked and engaged in prostitution. Smith and Welch collected the money the victim received from the unlawful sexual acts.
Based on the evidence presented, the minor victim was rescued from a hotel room reserved and paid for by Smith and occupied by Welch and the minor victim. During the course of the investigation, Smith’s cellular device rang when agents called the TextNow number associated with the minor victim’s commercial sex ads. After the minor victim was rescued, law enforcement reviewed Smith and Welch’s phones and recovered records of them photographing, posting and maintaining the commercial sex ads of the minor victim in six different cities. Welch and Smith both paid for and reserved hotel rooms that the minor victim used for the illegal sexual activity with the commercial sex customers.
Smith and Welch are scheduled to be sentenced on May 31, before U.S. District Judge Beth Bloom. Smith faces a maximum penalty of life in prison with a mandatory minimum sentence of 20 years’ imprisonment. Welch faces a maximum penalty of life in prison with a mandatory minimum sentence of 10 years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Director Stephanie V. Daniels of the Miami-Dade Police Department (MDPD) made the announcement.
This case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, in partnership with MDPD’s Human Trafficking Squad, and the South Florida Human Trafficking Task Force. Assistant U.S. Attorneys Abbie D. Waxman and Bertila Lilia Fernandez are prosecuting the case. Assistant U.S. Attorney Eloisa Fernandez is handling asset forfeiture.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously. To learn more about the hotline, visit www.humantraffickinghotline.org.
To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20122.
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Serial Bank Robber Sentenced to More than 7 Years in PrisonRead the Press Release
TUCSON, Ariz. – James Valentine Siehien, 53, of Tucson, was sentenced on February 27, 2024, by United States District Judge Raner C. Collins to 87 months in prison, followed by five years of supervised release. Siehien pleaded guilty to one count of Bank Robbery and two counts of Armed Bank Robbery on March 16, 2023, for a series of bank robberies he committed in Tucson.
Siehien admitted that, on October 21, 2021, he robbed approximately $4,000 from Chase Bank. He also admitted that, on October 26, 2021, he robbed approximately $2,740 from PNC Bank, with what was later determined to be a fake explosive device. Siehien further admitted that, on November 5, 2021, while possessing an axe, he robbed approximately $2,200 from First Convenience Bank.
The Federal Bureau of Investigation and the Tucson Police Department, as part of the Southern Arizona Violent Crime and Gang Task Force, conducted the investigation in this case. Assistant U.S. Attorney, Adam D. Rossi, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-03071-TUC-RCC
RELEASE NUMBER: 2024-029_Siehien# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Schuylkill County Man Indicted for Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose Miguel Peralta, Jr., age 35, of Shenandoah, Pennsylvania, was indicted by a federal grand jury for fentanyl trafficking in Luzerne County.
According to United States Attorney Gerard M. Karam, the indictment charges Peralta with one count of conspiracy to distribute more than 400 grams of fentanyl, four counts of distribution of fentanyl, and one count of being a convicted felon in possession of a firearm.
The charges against the defendant resulted from an investigation conducted by the Bureau of Alcohol, Tobacco, and Firearms (ATF), and the Luzerne County Drug Task Force. Assistant United States Attorney Robert J. O’Hara 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.
Under federal law, for the fentanyl trafficking charges, Peralta faces a mandatory minimum sentence of ten years in prison, a maximum sentence of life in prison, a term of supervised release and a fine. For the firearms charge, Peralta faces a maximum sentence of 15 years in prison, a term of supervised release 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 and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Rio Rancho Man Pleads Guilty to Federal Firearms OffensesRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Eric McLoughlin, Acting Special Agent in Charge of Homeland Security Investigations - El Paso, announced today that Peter Ryan Lynch pleaded guilty in federal court to one count each of possession of a firearm not registered with the national firearms registration and transfer records and illegal receipt of an imported firearm. Lynch, 46, of Rio Rancho, will remain in custody pending sentencing, which has not been set.
A federal grand jury indicted Lynch on May 18, 2023. According to publicly available court documents, on April 20, 2023, during the execution of a search warrant at Lynch’s residence in Rio Rancho, law enforcement officers located two silencers. In his plea agreement, Lynch admitted that he had ordered them online and that he did not have the proper legal authorization to possess them as he did not have permission from the Attorney General of the United States to import them and they were not registered to Lynch in the National Firearms Registration and Transfer Record.
At sentencing Lynch faces up to 10 years in prison.
Homeland Security Investigations investigated this case with assistance from the U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives and New Mexico State Police. Assistant United States Attorney Jon K. Stanford is prosecuting the case.
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Readout of Justice Department Community Safety Webinars with Jewish, Muslim, Arab and Palestinian Community StakeholdersRead the Press Release
Last week, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Deputy Director Paul Abbate of the FBI and Component Head Justin Lock of the Community Relations Service (CRS) hosted two webinars with community stakeholders from Jewish, Muslim, Arab and Palestinian communities. The webinars build on the department’s vigorous efforts to combat rising violence and threats of violence based on their religion, race, color, ethnicity or national origin.
“No person and no community in this country should have to live in fear of hate-fueled violence or discrimination,” said Assistant Attorney General Clarke. “With an increase in volume and frequency of threats since Oct. 7th, the Justice Department reaffirms our commitment to using every tool available to address discrimination and violence targeting vulnerable communities.”
The Justice Department officials provided updates on their efforts to bolster community safety and to prevent, disrupt, and prosecute illegal acts motivated by hate-fueled violence and discrimination. During the webinars, they directed stakeholders to critical safety resources, and listened to stakeholders express their concerns about the rise in threats. Officials also highlighted the Department’s United Against Hate community education and engagement program, which has hosted more than 300 events around the country attracting more than 10,000 participants.
“We are tremendously grateful for the relationships we have with our community partners, and appreciate the opportunity for continued engagement,” said FBI Deputy Director Abbate. “We hear you, we share your concerns, and we will continue to work relentlessly, 24/7, to protect and keep members of your communities safe.”
Deputy Director Abbate discussed the regular, ongoing engagement the FBI has with Jewish, Muslim, Arab and Palestinian community organizations and leaders across the country. The FBI works diligently to maintain two-way communication with community organizations at headquarters and in each of the 56 field offices. He addressed the current threat environment, describing an upward trend in reported hate crimes and an increase in violence and threats of violence towards the communities. Deputy Director Abbate assured call participants that the FBI continues work, with urgency, along with state and local partners to mitigate threats and prevent harm to our communities.
“The CRS recognizes that safety for communities is inclusive of both physical safety as well as a sense of belonging within community,” said Component Head Lock. “To this end, the CRS is committed to opening and sustaining channels of communication, forums for dialogue and better understanding as a means of returning agency, dignity and power back to all American communities.”
Component Head Lock shared CRS’s ongoing work with community leaders, law enforcement and civil society to prevent and respond to hate crimes and facilitate training and mediation services. This work includes CRS’ Places of Worship Forum, which provides faith-based leaders and congregations information about religious-bias hate crimes and brings together federal, state and local law enforcement to address safety and security issues.
Assistant Attorney General Clarke also announced the release of a number of fact sheets and resource documents that are designed to give the public a better understanding of federal civil rights laws, including laws that prohibit violence and discrimination on the basis of religion, national origin as well as protections in places of public accommodation and in local land use decisions. Preventing and prosecuting hate crimes is a top priority for the Justice Department, and you can find a recently updated Hate Crimes Fact Sheet here.
If you believe that you or someone else experienced religious or national origin discrimination, you can report a civil rights violation online at civilrights.justice.gov. If you believe you are a victim or a witness of a hate crime, report it to the FBI by calling 1-800-CALL-FBI or submit a tip at tips.fbi.gov. You can learn more about the department’s work on hate crimes here.
Puerto Rico United States Attorney’s Office Announces Whistleblower Pilot ProgramRead the Press Release
SAN JUAN, Puerto Rico – United States Attorney W. Stephen Muldrow announces that the Puerto Rico United States Attorney’s Office has launched a Whistleblower Pilot Program designed to encourage early and voluntary self-disclosure of criminal conduct by individual participants in certain non-violent offenses.
In exchange for such self-disclosure and cooperation, the U.S. Attorney’s Office will enter into a non-prosecution agreement where certain specified conditions are met, including, importantly, the condition that the government was not previously aware of the criminal conduct that is the subject of the disclosure. By providing clarity on the requirements of the benefits of such self-disclosure, we seek to incentivize individuals (and their counsel) to provide actionable and timely information. That will, in turn, help us bring more misconduct and criminal activity to light and better protect the communities we serve.
“Although other U.S. Attorney’s Offices have recently issued a similar policy, this new program follows on the message that this United States Attorney’s Office and our federal law enforcement partners have been stressing publicly for the past several years,” said U.S. Attorney Muldrow. “Full and complete early cooperation with federal authorities will be rewarded and is essential to our public service mission of rooting out fraud and public corruption and making our communities safer and stronger.”
Copies of the Whistleblower Pilot Program memorandum outlining this new policy, as well as a related Intake Form, are attached herewith and can also be found on the United States Attorney’s Office public website, located at https://www.justice.gov/usao-pr. In order to begin the whistleblower process under this program, the Intake Form can be sent via email to [email protected].
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pr_usao_pilot_whistleblower_final.pdf pr_usao_pwp_intake_form.pdfPrisoner Who Escaped from Bloomfield Halfway House Pleads GuiltyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that HECTOR SANTIAGO, 29, pleaded guilty yesterday in Hartford federal court to escaping from the custody of the Attorney General.
According to court documents and statements made in court, on November 18, 2019, Santiago was sentenced in Hartford federal court to 69 months of imprisonment for a narcotics trafficking offense. On June 23, 2023, he was transferred from the U.S. Penitentiary in Lee County, Virginia, to the Drapelick Center, a Residential Reentry Center (halfway house) in Bloomfield, to complete his custodial sentence. On September 27, 2023, Santiago left the facility and failed to return. He was located and arrested in Hartford on February 9, 2024.
Santiago has been detained since his arrest.
At sentencing, which is not scheduled, Santiago faces a maximum term of imprisonment of five years.
This matter was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Sean P. Mahard.
Portland Man Sentenced to 30 Years in Federal Prison for Murder Committed Amid Violent Robbery SpreeRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to 30 years in federal prison today for murdering a Milwaukie, Oregon man in his home amid a violent robbery spree that spanned several months and targeted at least six local businesses.
Keandre Dshawn LaMarcus Brown, 27, was sentenced to 360 months in federal prison and three years’ supervised release. He was also ordered to pay $29,991 in restitution to multiple victims.
“Gun violence continues to be one of the greatest public safety threats in our community,” said Steven T. Mygrant, Chief of the Narcotics and Criminal Enterprises Unit of the United States Attorney’s Office for the District of Oregon. “Keandre Brown and his accomplices’ string of armed robberies across the Portland area placed many innocent community members at significant risk.”
“Within months of completing a five-year prison sentence for attempted robbery, Keandre Brown went on a three-month crime spree, affecting over 20 victims, and brutally killing one. He used weapons, drugs, and fear to wreak havoc on our streets,” said Aubree M. Schwartz, Acting Special Agent in Charge of the FBI Portland Field Office. “Today’s significant sentence removes this dangerous individual from our community and highlights the tenacity of the FBI and our law enforcement partners to identify and apprehend criminals like him who threaten public safety.”
“I was among the first responders who arrived on the scene of Keandre Brown’s home invasion robbery after his victim called 911 screaming and begging for his life. After gunshots rang out on the line with our dispatchers, we saw firsthand the tragic result of this brutal murder,” said Luke Strait, Chief of the Milwaukie Police Department. “In the years that have followed, investigators from Milwaukie Police, the FBI, and the U.S. Attorney’s Office have worked tirelessly on what would become one of the most exhaustive investigations and prosecutions our region has seen in the last decade. Our criminal justice system has worked diligently and effectively to bring justice for this victim, his family, and the entire Milwaukie community.”
According to court documents, in the summer of 2016, Brown teamed up with an accomplice, Keith Bryon Woody Jr., 31, also of Portland, to engage in a series of armed robberies targeting multiple businesses in and around Portland. On August 2, 2016, the pair entered and robbed Paulsen’s Pharmacy on NE Sandy Boulevard in Portland. Both brandished firearms during the robbery, threatened numerous employees and customers, including by pointing a gun at the pharmacy manager’s head, and made off with controlled substances, cash, and several personal property items including wallets, credit cards, and phones.
Two weeks later, on August 13, 2016, Brown and Woody entered and robbed Fairley’s Pharmacy on NE Sandy Boulevard in Portland. The pair again brandished firearms, ordered employees and customers to the floor at gunpoint and zip-tied them, and proceeded to steal eight pill bottles that together contained approximately 1,600 Oxycodone pills.
Brown’s spree continued on August 31, 2016, when he and two accomplices entered and robbed the Lighthouse Deli on SE César Chávez Boulevard in Portland. Brown and his accomplices brandished firearms, zip-tied an employee, and stole cash as well as several wallets, credit cards, and phones from nearby employees and customers.
On September 5, 2016, after several days of planning, Brown, Woody, and multiple accomplices carried out a home invasion robbery targeting a Milwaukie man they believed possessed large quantities of cocaine and cash. The group forcibly entered the residence through a rear door and confronted the homeowner, who quickly retreated into a bathroom and called 911. Brown and Woody, each armed with semi-automatic firearms, positioned themselves outside the bathroom door where the homeowner had barricaded himself, while their accomplices searched the residence. Brown and Woody then fired their respective handguns multiple times at the bathroom door, penetrating the door and killing the homeowner.
Following the home invasion robbery and murder, Brown, with the assistance of others, carried out two additional armed robberies on a single day. On October 18, 2016, Brown and an accomplice entered and robbed a Plaid Pantry convenience store on NE Sandy Boulevard in Portland. The pair made off with cash, tobacco products, and various personal property items. Later the same day, Brown and an accomplice entered and robbed a Red Roof Inn on NE 82nd Avenue in Portland. The pair zip-tied an employee and threatened her to turn over cash but left empty handed after finding an empty cash register.
Investigators later connected Brown and Woody to an additional armed robbery of a pharmacy in Vancouver, Washington, on August 22, 2016, during which they threatened employees at gunpoint and made off with Oxycodone pills.
On October 20, 2016, U.S. Marshals arrested Brown and Woody traveling together in a vehicle. Both possessed firearms at the time of their arrest. Soon after, Brown was transferred to Clark County, Washington to face trial on charges of first-degree robbery, second-degree assault, and unlawful possession of a firearm. Brown was convicted on September 11, 2017, and later sentenced to 360 months in Washington State prison.
On November 4, 2020, a federal grand jury in Portland returned a multi-count indictment charging Brown, Woody, and several other accomplices for conspiring with one another to interfere with commerce by threats or violence, possessing firearms in furtherance of crimes of violence, and causing death through the use of a firearm.
Later, on July 11, 2023, in a separate criminal case, Brown was charged by criminal information with intentionally killing while engaged in drug trafficking. The same day, Brown pleaded guilty to one count each of conspiring with others to interfere with commerce by threats or violence and intentionally killing while engaged in drug trafficking, resolving both of his federal cases.
This case was investigated by the FBI and Milwaukie Police Department with assistance from the Portland Police Bureau, Oregon State Police Crime Lab, Clackamas County District Attorney’s Office, and Vancouver Police Department. It was prosecuted by Lewis S. Burkhart and Thomas H. Edmonds, Assistant U.S. Attorneys for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Philadelphia Man Sentenced to More Than 10 Years in Prison in Connection with Two Violent CarjackingsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Dashawn Pringle, 27, of Philadelphia, Pennsylvania, was sentenced to 125 months’ imprisonment, three years of supervised release, a $300 special assessment, and $1,250 in restitution by United States District Court Senior Judge Timothy J. Savage for his role in two carjackings in the city.
On the afternoon of April 23, 2022, Victim #1 was operating his 2021 Honda Pilot near the 5100 block of Race Street. The victim temporarily pulled over to the side of the road, and Pringle and another male suddenly got in. When Victim #1 attempted to run from the scene, the two caught up to him, punched and kicked him, then stole his wallet, car keys, and vehicle.
In the early morning hours of May 1, 2022, Victim #2, a ride-share driver, had just made a drop-off on the 300 block of South Camac Street when the previously carjacked Honda Pilot pulled behind his vehicle and hit the back bumper. Seeing no damage, Victim #2 waved to the driver of the Pilot, later identified as Pringle, and departed the area. After the Honda Pilot followed him and the driver appeared to flag him down, Victim #2 pulled over on the 1200 block of Lombard Street and walked over to the driver’s side door of the Pilot, where Pringle promptly pointed a gun at his face and told him not to move or he’d be shot. A front-seat passenger took Victim #2’s keys and drove off in his 2018 Toyota Highlander.
On November 28, 2023, Pringle pleaded guilty to two counts of carjacking and possession of ammunition by a felon.
“Carjackings are offenses that really undermine public confidence and quality of life,” said U.S. Attorney Romero. “People going about their daily business shouldn’t have to fear armed criminals like Dashawn Pringle preying on them out of the blue, physically assaulting them, sticking guns in their face, and taking off in their car. We and our partners on the Carjacking Task Force are working every day to identify, prosecute, and take criminals like this off Philadelphia’s streets, with the public’s safety our number one priority.”
“Sentences like this are a product of the diligent work done by the FBI Philadelphia Violent Crimes Task force, who leverages the resources of our local law enforcement partners to remove violent offenders from our streets,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “This serves as a reminder that brazen acts of violence will be not tolerated in this city and reinforces our commitment to fostering a safe community for the citizens of Philadelphia.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the FBI Philadelphia Violent Crimes Task Force and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Martin E. Howley, Jr.
Paul Hendler Imprisoned on Federal Forgery ChargeRead the Press Release
Burlington, Vermont - The United States Attorney’s Office announced that Paul Hendler, 52, of Burlington, was sentenced today in United States District Court in Burlington to a total of 36 months of imprisonment following his guilty plea to a federal forgery charge. As part of these court proceedings, Hendler also admitted that he violated the terms of his supervised release on an earlier federal fraud conviction. Chief Judge Geoffrey Crawford ordered that Hendler serve 26 months on the forgery case and a consecutive 10-month term for violating supervised release. This combined 36-month term represented an upward variance from the advisory Sentencing Guidelines. The court ordered that Hendler serve an additional three years of supervised release following completion of his prison term. It also ordered Hendler to pay restitution in the amount of $80,000. Hendler has been detained without bail since entering his guilty plea last summer.
In 2011, the U.S. Attorney’s Office in Vermont first charged Hendler in a wide-ranging fraud indictment that accused him of committing a variety of frauds against individuals and businesses. Hendler eventually pleaded guilty to wire fraud and money laundering, and in 2015, was sent to prison. The court also ordered Hendler to pay restitution to multiple victims in a total amount of about $555,000. When Hendler was released from prison, he began a three-year term of supervised release. As a condition of supervised release, the court ordered Hendler to pay 10% of his gross monthly income toward his restitution obligation. Hendler’s release was supervised by the U.S. Probation Office in Vermont, and Hendler was required to submit monthly supervision reports to the Probation Office that included disclosures about monthly earnings and other cash inflows.On January 27, 2022, a federal grand jury in Burlington returned a two-count indictment that charged Hendler with forgery and making false statements. According to the indictment, between 2019 and January 2021, Hendler performed some consulting and other work for a business that operated two restaurants in South Hero, Vermont. In 2020, Hendler took possession of the company’s checkbook. Between 2019 and January 2021, the indictment alleges, Hendler embezzled tens of thousands of dollars from the business by stealing cash receipts generated by the restaurants, forging the business owner’s signature on checks Hendler made out to himself, and by fraudulently inducing the owner to give him blank checks, signed by her, which Hendler then made payable to himself.
The second count of the indictment accused Hendler of making materially false statements to the U.S. Probation Office in his monthly supervision reports. According to the indictment, the reports Hendler filled out and gave to Probation significantly underreported the amount of money Hendler was receiving from the South Hero restaurant business.
Hendler pleaded guilty to the forgery charge in July 2023. At that time, he also admitted that he violated his supervised release by not paying restitution in a timely way to the victims of his first indictment.
This case was investigated by the Boston Office of the U.S. Treasury Department’s Office of the Inspector General for Tax Administration, and U.S. Attorney Nikolas Kerest commends the investigators for their excellent work.
Hendler is represented by Brooks McArthur, Esq. and Amanda Hemley, Esq.. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Operators of Large-Scale Marriage Fraud “Agency” SentencedRead the Press Release
BOSTON – Four California-based individuals have been sentenced in federal court in Boston for their roles in running a large-scale marriage fraud “agency” that arranged hundreds of sham marriages for the primary purpose of circumventing immigration laws. This included, among other things, obtaining green cards under the Violence Against Women Act (VAWA) by claiming falsely that the undocumented clients had been abused by American spouses.
The defendants, all Philippine nationals residing in Los Angeles, were arrested and charged along with seven others with conspiracy to commit marriage fraud and immigration document fraud in April 2022.
Marcialito Biol Benitez, a/k/a “Mars,” 50, was sentenced on March 7, 2024 by U.S. District Court Judge Denise J. Casper to 22 months in prison and three years of supervised release. Benitez pleaded guilty in September 2023. Also on March 7, 2024, Juanita Pacson, 48, was sentenced by Judge Casper to two years of supervised release with the first four months on home detention after previously pleading guilty in September 2023.
Engilbert Ulan, 43, was sentenced on March 6, 2024 by Judge Casper to 14 months in prison and three years of supervised release. Ulan was convicted by a federal jury in November 2023.
On Jan. 11, 2024, Nino Valmeo, 47, was sentenced by Judge Casper to three years of supervised release with the first six months on home confinement after pleading guilty in August 2023.
Benitez, with the help of co-defendants, operated what he and others referred to as an “agency” that arranged hundreds of sham marriages between foreign national “clients” and United States citizens, including at least one foreign national who resided in Massachusetts. The agency then prepared and submitted false petitions, applications and other documents to substantiate the sham marriages and secure adjustment of clients’ immigration statuses for a fee of between $20,000 and $35,000 in cash.
Benitez operated the agency out of brick-and-mortar offices in Los Angeles, where he employed co-defendants Ulan and Valmeo as staff. Ulan and Valmeo assisted with arranging marriages and submitting fraudulent marriage and immigration documents for the agency’s clients. Benitez relied on several other co-conspirators to recruit U.S. citizens to marry the agency’s clients in exchange for payment.
After pairing foreign national clients with citizen spouses, Benitez’s agency staged fake wedding ceremonies at chapels, parks and other locations, performed by hired online officiants. Pacson, a friend of these co-defendants who worked at one of the chapels, assisted with sham wedding ceremonies and marriage documents. For many clients, the agency would take photos of undocumented clients and citizen spouses in front of prop wedding decorations for later submission with immigration petitions.
Benitez’s agency then submitted fraudulent, marriage-based immigration petitions to U.S. Citizenship and Immigration Services (USCIS), the federal agency responsible for granting lawful permanent resident status. Benitez, Ulan, Pacson, and others, advised clients about creating and maintaining the appearance of legitimate marriage to their spouses.
Ulan conducted practice interviews with the agency’s clients and their fake spouses for the purpose of preparing couples to pass required interviews with immigration authorities. He coached the sham couples to provide the same fabricated answers to questions posed during green card interviews and conceal the fraudulent nature of the marriages.
Benitez, Ulan, Valmeo, and Pacson assisted clients with preparing fraudulent supporting documents submitted as “evidence” of the marriages’ legitimacy. Ulan, Valmeo and Pacson also rented the use of their apartment addresses to clients who lived outside of Los Angeles so those clients could list these addresses as their own on green card applications and related documents, to make it appear to immigration authorities that they were living with their sham spouses in the Los Angeles area. Ulan and Valmeo also received cash commissions for referring new clients to the agency.
Benitez’s agency would assist certain clients – typically those whose spouses became unresponsive or uncooperative – with obtaining green cards under the Violence Against Women Act (VAWA) by claiming the undocumented clients had been abused by alleged American spouses. Specifically, Benitez, Valmeo, and others, would submit fraudulent applications on clients’ behalf for temporary restraining orders against spouses based on fabricated domestic violence allegations. Benitez’s agency would then submit the restraining order documentation along with immigration petitions to USCIS, in order to take advantage of VAWA provisions that permit non-citizen victims of spousal abuse to apply for lawful permanent resident status without their spouses’ involvement.
Benitez’s agency arranged sham marriages and submitted fraudulent immigration documents for at least 600 clients between October 2016 and March 2022.
Several co-defendants were previously sentenced by Judge Casper for their roles in this scheme. Peterson Souza, who referred non-citizens to the agency for a fee was sentenced to five months in prison and three years of supervised release with the first five months on home detention, and Felipe David, who referred clients to the agency for assistance with VAWA-based applications was sentenced to three years of supervised release.Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; Chad Plantz, Special Agent in Charge of Homeland Security Investigations in San Diego; and Alanna Ow, Director of U.S. Citizenship & Immigration Services, San Diego District made the announcement today. The U.S. Attorney’s Office for the Central District of California provided valuable assistance in this matter. Assistant U.S. Attorneys David M. Holcomb and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Oklahoma City Man Pleads Guilty to Firearms Trafficking and Possession of a Machinegun and Agrees to Forfeit 194 Firearms, Machinegun Conversion Device, Ammunition, and Nearly $470,000 CashRead the Press Release
OKLAHOMA CITY – Yesterday, PHILLIP NILES MARTIN, 68, of Oklahoma City, pleaded guilty to firearms trafficking conspiracy and to unlawful possession of a machinegun, announced U.S. Attorney Robert J. Troester.
According to an affidavit in a previously filed criminal complaint, Martin was the subject of two previous Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigations for similar conduct. In 2013, Martin received a verbal warning for dealing firearms without a license and was advised that even with a license he could not deal firearms at an Oklahoma City swap meet. In 2020, he acknowledged receipt of an ATF cease-and-desist letter after a firearm that he had purchased was recovered at a crime scene in Mexico.
The affidavit further provides that in June 2022, ATF received multiple tips that Martin was illegally dealing in firearms at an Oklahoma City swap meet. An investigation revealed that Martin was still dealing firearms without a license and sold firearms at significantly inflated rates – approximately double retail price – without completing the background checks required by law.
Pursuant to a search warrant executed at Martin’s residence, agents seized 194 firearms, a significant quantity of ammunition, approximately $469,520 in cash, and a machinegun conversion device, commonly known as a “switch,” which when installed, converts a semi-automatic weapon into a fully automatic machinegun. Possession of these devices violates federal law.
On February 16, 2024, Martin was charged by Information with conspiracy to illegally traffic firearms and with unlawful possession of a machinegun.
Yesterday, Martin appeared before United States District Judge Jodi W. Dishman and pled guilty to both counts of the Information. In entering his plea, Martin specifically acknowledged he knowingly conspired with others to traffic firearms and that he illegally possessed a machinegun conversion device. Martin also agreed to forfeit all 194 firearms, the ammunition, approximately $469,520 in cash, and the machinegun conversion device.
At sentencing, Martin faces up to 25 years in federal prison and fines totaling up to $500,000. The sentencing hearing will take place in approximately 90 days.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Danielle M. Connolly 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. This case is also part of “Project Switch Off,” the Western District of Oklahoma’s local implementation of PSN. “Project Switch Off” targets illegal machinegun conversion devices to address the significant danger these illegal devices present and to remove them from our streets. For more information about PSN, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for more information.
North Carolina Home Health Care Agency and Owner Agree to Pay $600,000 to Resolve False Claims Act AllegationsRead the Press Release
CHARLOTTE, N.C. – Family First Home Health Care, Inc. (Family First), a home health care agency located in Gastonia, N.C. (now d/b/a Gaston Piedmont Health Care Inc.), and its owner Marion James (James) have agreed to collectively pay $600,000 to resolve allegations that they knowingly violated the Federal and North Carolina False Claims Acts from January 1, 2015, through January 9, 2020, by submitting thousands of fraudulent claims to Medicaid for reimbursement, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Specifically, the United States and State of North Carolina (together, the Governments) alleged that Family First and James billed Medicaid for personal care services that were never performed, such as billing for in-home services on days when patients were hospitalized. Similarly, the Governments alleged that Family First and James billed for years of personal care services purportedly provided to patients in their homes by James’ daughter while she was hours away at college as a full-time student playing on the varsity basketball team, or billed for services provided by an aide after that aide had moved out of state.
The Governments further alleged that Family First and James engaged in a scheme to have family member aides provide personal care services to their own family member beneficiaries (for example, a daughter providing services to her mother) in violation of state Medicaid regulations, and then fraudulently bill for those services as if they were performed by a non-related aide, forging documents and signatures to perpetuate the scheme.
“Medicaid beneficiaries qualifying for personal care services are those that require assistance with daily living tasks, often the elderly. This settlement demonstrates that those who would profit from defrauding government healthcare payors while taking advantage of vulnerable patients entrusted to their care will be held accountable,” said U.S. Attorney King.
“Submitting false claims to Medicaid undermines the integrity of the program and wastes valuable taxpayer dollars,” said Special Agent in Charge Tamala E. Miles at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, HHS-OIG remains committed to investigating providers who allegedly defraud federal health care programs.”
“These defendants stole hundreds of thousands of taxpayer dollars while never actually providing the care they claimed to,” said North Carolina Attorney General Josh Stein. “My office will hold accountable those who defraud the Medicaid system and take away resources from people who need them.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former Family First employee Heather Coleman. Under those provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Coleman v. Family First Home Health Care, LLC and Marion James, No. 3:19-CV-405 (W.D.N.C.). The settlement amount was based on Family First and James’ ability to pay.
Assistant U.S. Attorney Seth Johnson and Investigator Cathleen Hollowell of the U.S. Attorney’s Office in Charlotte investigated the matter, in conjunction with the Medicaid Investigations Division of the North Carolina Attorney General’s Office and the Office of Inspector General of the United States Department of Health and Human Services.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
New York-Presbyterian/Brooklyn Methodist Hospital Settles Health Care Fraud Claims for $17.3 MillionRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today a settlement agreement with New York-Presbyterian/Brooklyn Methodist Hospital. The settlement agreement requires the hospital to pay $17.3 million to resolve allegations that it paid unlawful kickbacks to physicians at the hospital’s chemotherapy infusion center. The payments were made pursuant to a contractual arrangement that linked the compensation physicians received to the number of referrals the physicians made for services at the Center. The agreement also resolves claims that physicians at the infusion center failed to adequately supervise the chemotherapy services. The settlement resolves claims under the federal and New York State False Claims Acts. Of the total settlement amount, $16.410 million is to be paid to the federal government, and $890,000 is to be paid to New York State. The Hospital voluntarily self-disclosed the issues to the United States.
“This settlement addresses a compensation scheme that incentivized physicians to make referrals for services based on how much they would be paid and were essentially kickbacks,” stated United States Attorney Peace. “New York-Presbyterian/Brooklyn Methodist Hospital voluntarily self-disclosed the conduct to the United States, which allowed it to mitigate the penalties associated with the conduct.”
To ensure that physicians make medical decisions based solely on the needs of their patients, Medicare and Medicaid rules prohibit physicians from receiving any kind of remuneration in exchange for patient referrals for services. The United States’ investigation of New York-Presbyterian/Brooklyn found that physicians at a chemotherapy infusion center affiliated with the hospital were paid based, in part, on the volume of referrals they generated for it.
Medicare and Medicaid rules also require that those billing for medical services be involved in the services. A hospital, for instance, cannot bill for the services of a physician if that physician did not participate in the patient care. The rules recognize that non-physicians, like nurses, provide care to patients; such care is permissible and, often, desirable. But, in many instances, such care must be provided under the supervision of a physician who is available to assist in the care if need be. At the infusion center at issue in this matter, Medicare and Medicaid were billed for services provided by non-physicians even in instances in which physicians were not available to adequately supervise the services.
The matter was handled by Assistant United States Attorney Michael Blume of the Office’s Civil Division.
New York man sentenced to prison for possessing incendiary device he ignited near victim’s Butler County homeRead the Press Release
CINCINNATI – A New York man was sentenced in federal court here today to 46 months in prison for possessing an unregistered incendiary device. The defendant took a two-hour flight to light a woman’s car on fire.
Farhan Jami, 29, of East Meadow, New York, constructed an incendiary device, placed it on top of a vehicle’s hood and ignited the device. The fire destroyed the vehicle and damaged the side of the nearby Butler County house, which was occupied at the time of the fire.
According to court documents, in May 2023, Jami flew from New York to Ohio and brought thermite (an incendiary powder) and sparklers with him on the flight.
In the early morning hours of May 16, 2023, Jami traveled to a residence in Butler County and constructed an incendiary device using the thermite, sparklers and a ceramic pot. He placed the device on the hood of a car at the home and lit the sparklers. He left as the fire began.
Home security footage showed Jami wearing a hat, surgical mask and gloves while placing and lighting the device before walking away.
While responding to the scene, officers located Jami in a vehicle nearby. His shirt and pants had red residue on them consistent with thermite. Officers also discovered the lighter, hat, mask and gloves used during the crime, as well as a bag of thermite.
Jami was indicted by a federal grand jury in June 2023 and pleaded guilty in October 2023.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); announced the sentence imposed today by U.S. District Judge Matthew W. McFarland. Assistant United States Attorneys Timothy S. Mangan and Ryan A. Keefe are representing the United States in this case.
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New Orleans Man Sentenced Fifty-Nine Month Imprisonment After Pleading Guilty to Federal Firearms OffenseRead the Press Release
NEW ORLEANS, LOUISIANA- MICHAEL WILLIAMS, age 28, a resident of New Orleans, was sentenced on March 5, 2024 by U.S. District Judge Darrel J. Papillion to 59 months imprisonment to be followed by 3 years of supervised release, along with a $100 mandatory special assessment fee, after previously pleading guilty to being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
According to court documents, on January 10, 2023, WILLIAMS and three other individuals were standing near the intersection of North Broad and Hope streets at the edge of the Seventh Ward. When NOPD detectives drove by in an unmarked vehicle, the individuals backed up and clutched at their waistbands, indicating to the detectives that they possessed concealed firearms. Marked NOPD units were called to the area and, upon seeing the police vehicles, WILLIAMS fled and during the pursuit by an NOPD officer. WILLIAMS removed a Glock Model 43 handgun, that was concealed on his person, and discarded it on the ground.
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 Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Orleans Man Sentenced for Multiple Federal Offenses Related to Drugs, Firearm, and Possessing Car Stolen from Norfolk Southern RailyardRead the Press Release
NEW ORLEANS, LOUISIANA- NORMAN ANDREWS, age 24, a resident of New Orleans, was sentenced on March 5, 2024 by U.S. District Judge Jay C. Zainey, after previously pleading guilty to charges in a multi-count indictment.
ANDREWS was sentenced to 78 months imprisonment, followed by 5 years of supervised release, and a $300 mandatory special assessment fee for his convictions for possession of a car stolen from the Norfolk Southern Railyard, in violation of Title 18, United States Code, Section 659; possession with intent to distribute tapentadol and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to court documents, ANDREWS was arrested, following a brief chase, on February 11, 2023 in the French Quarter by a New Orleans Police Department officer. When ANDREWS was finally apprehended, he possessed a Glock Model 19x firearm with a loaded, extended magazine containing 31 rounds, a black ski mask, two blister packs of tapentadol, two bags of marijuana, and over $2,000 in cash.
On March 27, 2023, a Ford Explorer Timberline was stolen from the Norfolk Southern Automotive Distribution Facility. Andrews was observed on surveillance video driving the Ford Explorer, two days after it was stolen.
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 Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Orleans Man Pleads Guilty to Violating Federal Gun Control and Controlled Substances ActsRead the Press Release
NEW ORLEANS, LOUISIANA – HAROLD DECLOUET (“DECLOUET”), age 22, a resident of New Orleans, pleaded guilty on March 6, 2024 before U.S. District Judge Jane T. Milazzo to four counts of federal drug and weapons violations.
DECLOUET pleaded guilty to two counts of distribution of cocaine base, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C); one count of possession with intent to distribute cocaine base, marijuana, and tramadol, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C), 841(b)(1)(D), and 841(b)(2); and one count of possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i).
According to court documents, DECLOUET made two sales of cocaine base to a confidential informant for the Bureau of Alcohol, Tobacco, Firearms, and Explosives in February of 2022. A few months later, in May of 2022, DECLOUET was arrested with cocaine base, marijuana, tramadol pills, over $1,000 in cash, and a Glock Model 19 handgun loaded with 31 rounds of ammunition.
With respect to his convictions for distribution of cocaine and possession with intent to distribute controlled substances, DECLOUET faces a maximum sentence of 20 years in prison, a fine of up to $1,000,000, and a minimum of three years of supervised release on each count. With respect to his conviction for possessing a firearm in furtherance of a drug trafficking crime, DECLOUET faces a mandatory minimum sentence of five years and up to life in prison, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. Each count also carries a mandatory $100 special assessment fee.
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, Firearms, Tobacco, and Explosives and the Jefferson Parish Sheriff’s Office. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
Montana Man Pleads Guilty to Federal Wildlife Trafficking Charges as Part of Yearslong Effort to Create Giant Hybrid Sheep for Captive HuntingRead the Press Release
A Montana man pleaded guilty today to two felony wildlife crimes – a conspiracy to violate the Lacey Act and substantively violating the Lacey Act – as part of an almost decade-long effort to create giant sheep hybrids in the United States with an aim to sell the species to captive hunting facilities.
Arthur “Jack” Schubarth, 80, of Vaughn, Montana, is the owner and operator of Sun River Enterprises LLC – also known as Schubarth Ranch – which is a 215-acre alternative livestock ranch in Vaughn. The Schubarth Ranch is engaged in the purchase, sale and breeding of “alternative livestock” such as mountain sheep, mountain goats and various ungulates. The primary market for Schubarth’s livestock is captive hunting operations, also known as shooting preserves or game ranches.
According to court documents, Schubarth conspired with at least five other individuals between 2013 and 2021 to create a larger hybrid species of sheep that would garner higher prices from shooting preserves. Schubarth brought parts of the largest sheep in the world, Marco Polo argali sheep (Ovis ammon polii), from Kyrgyzstan into the United States without declaring the importation. Average males can weigh more than 300 pounds with horns that span more than five feet. Marco Polo argali are native to the high elevations of the Pamir region of Central Asia. They are protected internationally by the Convention on International Trade in Endangered Species, domestically by the U.S. Endangered Species Act and are prohibited in the State of Montana to protect native sheep from disease and hybridization.
Schubarth sent genetic material from the argali parts to a lab to create cloned embryos. Schubarth then implanted the embryos in ewes on his ranch, resulting in a single, pure genetic male Marco Polo argali that he named “Montana Mountain King” or MMK.
Court documents explain that Schubarth worked with the other unnamed coconspirators to use MMK’s semen to artificially impregnate various other species of ewes – all of which were prohibited in Montana – and create hybrid animals. Their goal was to create a larger and more valuable species of sheep to sell to captive hunting facilities, primarily in Texas.
To move the prohibited sheep into and out of Montana, Schubarth and others forged veterinary inspection certificates, falsely claiming that the sheep were legally permitted species. On occasion, Schubarth sold MMK semen directly to sheep breeders in other states.
Court documents also describe how Schubarth illegally obtained genetic material from wild-hunted Rocky Mountain bighorn sheep in Montana. Schubarth purchased parts of these wild-hunted sheep in violation of Montana law, which prohibits the sale of game animal parts within the state and prohibits the use of Montana game animals on alternative livestock ranches. Schubarth transported and sold the bighorn parts in interstate commerce.
“This was an audacious scheme to create massive hybrid sheep species to be sold and hunted as trophies,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “In pursuit of this scheme, Schubarth violated international law and the Lacey Act, both of which protect the viability and health of native populations of animals.”
“The kind of crime we uncovered here could threaten the integrity of our wildlife species in Montana,” said Ron Howell, Chief of Enforcement for Montana Fish, Wildlife & Parks (FWP). “This was a complex case and the partnership between us and U.S Fish and Wildlife Service was critical in solving it.”
The Lacey Act prohibits interstate trade in wildlife that has been taken, possessed, transported or sold in violation of federal or state law. The Lacey Act also prohibits the interstate sale of wildlife that has been falsely labeled. The Act is one of the most powerful tools the United States has to combat wildlife trafficking and prevent ecological invasion by injurious wildlife.
For each felony count, Schubarth faces a maximum penalty of five years in prison, a fine of up to $250,000 and three years of supervised release. Schubarth is scheduled to be sentenced on July 11 by Chief U.S. District Court Judge Brian M. Morris for the District of Montana.
The U.S. Fish and Wildlife Service and Montana FWP are investigating the case.
Trial Attorney Sarah M. Brown and Senior Trial Attorney Patrick M. Duggan of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Jeffrey Starnes for the District of Montana are prosecuting the case.
Mexican Citizen Sentenced to over 27 Years in Federal Prison in a South Dakota Cocaine ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sinaloa, Mexico man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on March 11, 2024.
Melecio Rodriguez Medina, 39, was sentenced to 27 years and three months in federal prison, followed by five years of supervised released. He was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Rodriguez Medina, and his co-conspirator, Mario Castro Covarrubias, were indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in February 2022. Rodriguez Medina pleaded guilty on November 6, 2023 and Mario Castro Covarrubias pleaded guilty on January 3, 2024.
Rodriguez Medina and Castro Covarrubias were based in Mexico and were part of an international organization that arranged for the transportation of large amounts of narcotics to Sioux Falls, South Dakota, from Mexico. They coordinated with two couriers to get approximately 25 kilograms of cocaine delivered to Sioux Falls in October of 2021. On October 18, 2021, law enforcement seized the cocaine that they had shipped to South Dakota. In December of 2021, the two again coordinated to ship approximately 42 kilograms of cocaine to Sioux Falls, which was also seized. In addition to cocaine, Rodriguez Medina was responsible for organizing a shipment of 1 kilogram of fentanyl pills to Sioux Falls. Investigators also determined that Rodriguez Medina made arrangements for a co-conspirator in South Dakota to pick up multi-pound shipments of methamphetamine in California and then take them back to South Dakota for distribution.
This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Rodriguez Medina was immediately remanded to the custody of the U.S. Marshals Service.
Mescalero Woman Pleads Guilty to Domestic AbuseRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Prestina Lee Kazhe pleaded guilty in federal court to assault of an intimate partner resulting in substantial bodily injury. Kazhe, 44, of Mecalero, and an enrolled member of the Mescalero Apache Tribe, will remain in custody pending sentencing which has not been scheduled.
According to publicly available court records, on Sept. 24, 2023, Kazhe assaulted John Doe by repeatedly hitting him over the head with a Bud Light bottle and a metal pot and bit him on the arm. Following the assault, John Doe was transported to a nearby medical center where he was treated for three large lacerations which required multiple staples to close the wounds.
At sentencing, Kazhe faces up to 5 years in prison followed by 3 years of supervised release.
The Bureau of Indian Affairs investigated this case. Assistant United States Attorney Joni Autrey Stahl is prosecuting the case.
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Member of Violent Gang Pleads Guilty to Racketeering, Firearm, and Drug Trafficking OffensesRead the Press Release
BOSTON – A Boston area man pleaded guilty yesterday to his role in Cameron Street, a violent Boston gang.
Keiarri Dyette, a/k/a “Kemo,” 26, pleaded guilty to conspiracy to participate in a racketeering enterprise, dealing in firearms without a license and conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. U.S. Senior District Court Judge William G. Young scheduled sentencing for June 13, 2024.
Dyette was identified as a member Cameron Street, a violent gang based largely in the Dorchester section of Boston. According to court documents, Cameron Street members use violence and threats of violence to preserve, protect, and expand its territory, promote a climate of fear, and enhance its reputation. They allegedly possess, carry, and use firearms to murder and assault their rivals. Like many members of Cameron Street, Dyette had tattoos and or wore clothing featuring the letter “C” or “KC” (for “Killa Cam”) that signified his membership in the gang:
As part of his role in the Cameron Street enterprise, Dyette used a pistol to assault a rival NOB/Wendover gang member in a parking lot on Hancock Street in Boston. Additionally, Dyette sold firearms and worked with other Cameron Street members to distribute cocaine and marijuana.
The charge of RICO conspiracy and conspiracy to interfere with commerce by force or violence each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute and to possess with intent to distribute cocaine provides for a sentence of up to 40 years in prison, at least four years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of the Criminal Division are prosecuting the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Member of Catalytic Converter Theft Crew Sentenced to More Than Three Years in PrisonRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Boston for his role in a regional organized theft crew that stole catalytic converters from nearly 500 vehicles, robbed jewelry stores and stole ATMs.
Nicolas Davila, 25, was sentenced by U.S. District Court Judge Leo T. Sorokin to 37 months in prison and five years of supervised release. In October 2023, Davila, pleaded guilty to one count of conspiracy to transport stolen property in interstate commerce; two counts of interstate transportation of stolen property; and possession with intent to distribute cocaine. The drug charge arises from cocaine found during the search of Nicolas Davila’s residence as part of the catalytic converter theft investigation.
In April 2023, Nicholas Davila was arrested and charged along with six others in connection with the theft, transportation and sale of stolen catalytic converters taken from at least 496 vehicles across Massachusetts and New Hampshire in 2022 through April 2023 alone. It is believed that a significant number of additional thefts have not been identified or were not ever reported to law enforcement. According to court filings, there has been a precipitous decline in catalytic converter thefts reported in Massachusetts as a result of the April 2023 takedown – with only seven reported incidents of catalytic converter theft over the past 11 months following the arrests, in comparison to the hundreds of thefts reported during the nine-month period prior.
Catalytic converter theft has become a nationwide problem across a multitude of state, local, and federal jurisdictions due to the high-valued precious metals they contain – some of which are more valuable than gold, with black-market prices being more than $1,000 each in recent years. The theft of a vehicle’s catalytic converter results in damage that renders the vehicle inoperable – both mechanically and legally under EPA regulations.
Nicolas Davila was a member of a skilled, organized theft crew allegedly led by his brother, Rafael Davila, that utilized battery operated power-tools, car jacks to cut away and steal catalytic converters from vehicles across Massachusetts and into New Hampshire. The catalytic converter thefts were predicated upon the use of an internet application that provided real-time pricing for catalytic converters quantifying the commodity prices of the amounts of precious metal in a particular vehicle’s converter. Equipped with special knowledge of the values on the black market and technical skill with vehicles, the defendants targeted specific makes and models of vehicles to maximize the profits. The theft crew would travel hundreds of miles, hours on end in a single night, to specific locations, including home driveways and business parking lots, where large numbers of these vehicles were located in order obtain an economy of scale. On numerous occasions, the crew targeted more than 10 vehicles in a single night, with one night reporting thefts from 26 vehicles.
As a result of the thefts, losses were determined to be approximately $5,000 per vehicle with certain trucks costing over $10,000 to repair. This amounts to an approximate $2 million in losses suffered by more than 300 separate victims who were forced to deal with their vehicles being disabled for potentially weeks on end. The more than 300 victims included businesses and individuals from all walks of life and all parts of Massachusetts and some from New Hampshire. They included a food pantry, families, automotive businesses, tradesmen, a bakery, single parents, a home healthcare provider and the elderly. Some businesses were repeatedly targeted on multiple nights.
Once in possession of the stolen catalytic converters, the crew would then sell them to Jose Torres, who would accumulate stolen catalytic converters from multiple theft crews and then in turn sell them to scrap dealers in the Northeast – transacting approximately $30,000 to $80,000 in stolen catalytic converters per week. In particular, Torres sold stolen catalytic converters to scrap dealers who have since been charged federally for interstate transportation of stolen property and money laundering in the District of Connecticut, the Eastern District of California and Northern District of Oklahoma.
At sentencing, Nicolas Davila was held accountable for his participation in thefts of catalytic converters from 42 vehicles across Massachusetts and New Hampshire. Nicolas Davila was also held accountable for possessing cocaine and a firearm at the time of his arrest in April 2023.
Nicolas Davila is the fifth defendant to plead guilty in this case. In addition to the federal charges, Nicolas Davila separately faces a pending murder indictment in Hampden County Superior Court. His brother and the alleged leader of the theft crew, Rafael Davila, has pleaded not guilty and is presumed innocent.
The charge of conspiracy to transport stolen property in interstate commerce provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of interstate transportation of stolen property each provide for a sentence of up to 10 years, up to three years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute cocaine provides for a sentence of up to 20 years, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Kevin Gallagher, Director of Operations for the National Insurance Crime Bureau, Northeast Region made the announcement today. Valuable assistance was also provided by the United States Attorney’s Offices for the District of Connecticut, the Northern District of Oklahoma and the Eastern District of California; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the New England State Police Information Network (NESPIN). Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
Over 70 local police departments in Massachusetts, New Hampshire and Connecticut contributed to this investigation through the submission of their investigations of catalytic converter thefts in their jurisdiction. The Massachusetts police departments contributing to the investigation were Abington, Acton, Andover, Auburn, Bedford, Bellingham, Beverly, Billerica, Burlington, Bridgewater, Canton, Carver, Chelmsford, Concord, Cranston, East Hampton, Easton, Fitchburg, Framingham, Franklin, Gardner, Hampton, Hanover, Haverhill, Hingham, Holliston, Holyoke, Hudson, Ipswich, Lawrence, Leominster, Lynn, Malden, Mansfield, Medford, Marlborough, Methuen, Middleton, Milford, Millbury, Needham, Newton, Northborough, Norwell, Norwood, Peabody, Pembroke, Plymouth, Randolph, Rockland, Sharon, Shrewsbury, Springfield, Sterling, Sturbridge, Sudbury, Tyngsborough, Walpole, Waltham, Watertown, West Bridgewater, Weymouth, Wilmington, Woburn and Worcester. The New Hampshire police departments contributing to the investigation were Bow, Concord, Derry, Hooksett, Hudson, Londonderry, Manchester, Salem and Windham. The South Windsor and Windsor Connecticut Police Departments also contributed to the investigation.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
McKees Rocks Drug Trafficker Sentenced to Prison TermRead the Press Release
PITTSBURGH, Pa. - A resident of McKees Rocks, Pennsylvania, has been sentenced in federal court to 12 months plus one day of imprisonment, to be followed by three years of supervised release, on his conviction of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
United States District Judge William S. Stickman imposed the sentence on Eric Howard, 36.
According to information presented to the Court, between February and June 2023, Howard conspired to distribute and possess with intent to distribute a quantity of fentanyl, a Schedule II controlled substance.
Prior to imposing sentence, Judge Stickman stated that the defendant had a significant record of drug trafficking and that a sentence of incarceration should serve as a deterrent from further drug trafficking activity.
Assistant United States Attorneys Katherine C. Jordan and Douglas C. Maloney prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Howard.
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.
Man Sentenced for Sending Bomb Threat to Arizona State Election OfficialRead the Press Release
A Massachusetts man was sentenced today to three years and six months in prison for sending a communication containing a bomb threat to an election official in the Arizona Secretary of State’s Office.
“Those using illegal threats of violence to intimidate election workers should know that the Justice Department will find you and hold you accountable under the law,” said Attorney General Merrick B. Garland. “The defendant in this case will spend the next three and a half years in federal prison for threatening an Arizona election official. We will continue to aggressively investigate and prosecute such unlawful threats of violence.”
According to court documents, on or about Feb. 14, 2021, James W. Clark, 40, of Falmouth, sent a message via the Arizona Secretary of State’s website through “Contact Elections,” addressing the election official by her first name and warning her that she needed to “resign by Tuesday February 16th by 9 am or the explosive device impacted in her personal space will be detonated.” Shortly after transmitting the message, Clark conducted online searches that included the full name of the election official in conjunction with the words “how to kill” and “address.” Additionally, on or about Feb. 18, 2021, Clark conducted online searches involving the Boston Marathon bombing.
“James W. Clark sent a bomb threat to an Arizona election official. As a result, law enforcement searched the office building where the official worked, as well as the official’s home and car, for an explosive device,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Public servants who ensure our free and fair elections must be able to do their jobs without fear. The Criminal Division will continue to aggressively investigate and prosecute those who target election officials with threats of violence.”
In response to Clark ’s message, law enforcement conducted partial evacuations and bomb sweeps of the building in which the Arizona Secretary of State’s Office was located, including an evacuation of the floor of the Office of the Arizona Governor located in the same building. Law enforcement also conducted bomb sweeps of the election official’s personal residence and of the election official’s car.
“The U.S. Attorney’s Office for the District of Arizona will continue to prosecute those who would threaten our public servants simply for performing the jobs they were hired to do,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “As we head into election season, we thank the state and county election community who make democracy possible.”
“Election officials, their staffs, and volunteers are essential to our democracy and any threat to these public servants is completely unacceptable,” said Special Agent in Charge Akil Davis of the FBI Phoenix Field Office. “As part of our mission to defend the democratic process, this case demonstrates that the FBI remains prepared to respond to these threats in an urgent and timely fashion.”
Clark pleaded guilty in August 2023 to one count of making a threatening interstate communication.
The FBI Phoenix Field Office investigated the case, with assistance from the FBI Boston Field Office.
Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Sean K. Lokey for the District of Arizona prosecuted the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers – whether elected, appointed, or volunteer – are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Over two years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
Under the leadership of Deputy Attorney General Monaco, the task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
Man Accused of Defrauding Investors in Sports Betting FundRead the Press Release
ST. LOUIS – A man from Pennsylvania has been indicted in St. Louis and accused of defrauding investors in a sports betting fund for more than five years.
Elijah A. Goshert, 47, was indicted on Nov. 15, 2023, on three counts of wire fraud. Goshert was arrested in Pennsylvania on Feb. 28, 2024, and pleaded not guilty in U.S. District Court in St. Louis Tuesday.
The indictment says Goshert, who had a day job at a telecommunications company, told investors that he ran an investment fund called the Magellan Sports Fund. Goshert said the fund placed sports bets using a "sophisticated computer algorithm" that substantially reduced risks, the indictment says. Goshert told investors he would not make any money unless the bets turned a profit, but the indictment says Goshert actually used investors’ money for his personal expenses, including Disney vacations, private school tuition and mortgage payments.
Goshert sent fraudulent “updates” and account statements to investors and lied to investors when they tried to withdraw cash, the indictment says. At least 10 investors lost more than $500,000, the indictment says.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Each wire fraud charge carries a potential penalty of up to 20 years in prison, a $250,000 fine, or both prison and a fine.
The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Lawrence Woman Sentenced in Conspiracy to Use Stolen Identities to Fraudulently Purchase VehiclesRead the Press Release
BOSTON – A Lawrence woman was sentenced today for her role in a scheme to use the stolen identities of United States citizens from Puerto Rico to fraudulently purchase vehicles.
Wanda Sanchez, 40, was sentenced by U.S. District Court Judge Patti B. Saris to two years of probation. In November 2023, Sanchez pleaded guilty to conspiracy to commit wire fraud, wire fraud and false representation of a Social Security number.
In January 2019, Sanchez visited a Massachusetts car dealership in an attempt to purchase a late-model vehicle and applied for 100% financing. In support of the application, Sanchez provided stolen biographical information of a real United States citizen, along with a fraudulent Puerto Rico driver’s license and a Social Security card in that identity as proof of identification. When Sanchez’s co-defendant and then-boyfriend Ricardo Acevedo arrived at the dealership to obtain the vehicle, he was immediately taken into custody. In May 2023, Acevedo was sentenced to six years in prison after previously pleading guilty to his role in the conspiracy.
Sanchez is the fifth defendant to be sentenced in this case. Altogether, Sanchez and her co-conspirators fraudulently purchased at least 47 vehicles and over $270,000 in other merchandise using stolen identities, resulting in over $2 million in losses. The co-conspirators have been ordered to pay over $781,000 in restitution to victims who submitted claims.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Valuable assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of the Criminal Division are prosecuting the case.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
Lamor Whitehead, Brooklyn Church Leader, Convicted of Fraud, Extortion, and False StatementsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict last night against LAMOR WHITEHEAD on two counts of wire fraud, one count of attempted wire fraud, one count of attempted extortion, and one count of making false statements to federal law enforcement agents. U.S. District Judge Lorna G. Schofield presided over the two-week trial.
U.S. Attorney Damian Williams said: “As a unanimous jury found, Lamor Whitehead abused the trust placed in him by a parishioner, tried to obtain a fraudulent loan using fake bank records, bullied a businessman for $5,000, tried to defraud him out of far more than that, and lied to federal agents. Whitehead’s reprehensible lies and criminal conduct have caught up with him, as he now stands convicted of five federal crimes and faces time in prison.”
According to the allegations in the Indictment and the evidence at trial:
LAMOR WHITEHEAD, who leads a church in Brooklyn, New York, stole from his own parishioners, sought to defraud and extort a businessman, and committed loan fraud. First, WHITEHEAD induced one of his parishioners to invest approximately $90,000 of her retirement savings with him by promising to use the money to help her buy a home. He then spent the money on luxury goods and other personal expenses and, when she demanded to be paid back, he continued to lie to avoid returning the money. Second, WHITEHEAD extorted a businessman for $5,000, then attempted to convince the same businessman to lend him $500,000 and give him a stake in certain real estate transactions in return for favorable actions from the Mayor of New York City, even though WHITEHEAD knew he could not obtain the favors he promised. Third, WHITEHEAD submitted a fraudulent application for a $250,000 business loan, including doctored bank statements that falsely claimed WHITEHEAD had millions of dollars in the bank and hundreds of thousands of dollars in monthly revenue. Finally, when speaking with Federal Bureau of Investigation (“FBI”) agents who were executing a search warrant outside WHITEHEAD’s mansion in New Jersey, WHITEHEAD falsely claimed that he had no cellphones other than the phone he was carrying when, in fact, WHITEHEAD had and regularly used a second cellphone, which was inside his house at the time.
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WHITEHEAD, 45, of Paramus, New Jersey, was convicted of two counts of wire fraud, one count of attempted wire fraud, and one count of attempted extortion, each of which carries a maximum sentence of 20 years in prison, and one count of making false statements, which carries a maximum sentence of five years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jessica Greenwood, Jane Kim, and Derek Wikstrom, with the assistance of Paralegal Specialist Christopher De Grandpre, are in charge of the prosecution.
La Fiscalía Federal del Distrito de Puerto Rico anuncia Programa Piloto para Denunciantes (Whistleblower Pilot Program)Read the Press Release
SAN JUAN, Puerto Rico – El Fiscal Federal W. Stephen Muldrow anuncia que la Oficina de la Fiscalía Federal del Distrito de Puerto Rico ha lanzado un Programa Piloto para Denunciantes (Whistleblower Pilot Program) diseñado para fomentar la divulgación temprana y voluntaria de conducta criminal por parte de participantes individuales en ciertos delitos no violentos.
A cambio de dicha divulgación y cooperación, la Fiscalía Federal entrará en un acuerdo de no enjuiciamiento cuando se cumplan ciertas condiciones específicas, incluida, sobre todo, la condición de que el gobierno no tuviera conocimiento previo de la conducta delictiva objeto de la divulgación. Al brindar claridad sobre los requisitos de los beneficios de dicha divulgación, buscamos incentivar a las personas (y a sus abogados) a brindar información procesable y oportuna. Eso, a su vez, nos ayudará a sacar a la luz más conductas indebidas y actividades delictivas, y a proteger mejor a las comunidades a las que servimos.
“Aunque otros Distritos han emitido recientemente una política similar, este nuevo programa sigue el mensaje que esta Fiscalía Federal y nuestros socios federales del orden público han estado enfatizando públicamente durante los últimos años,” dijo el Fiscal Federal W. Stephen Muldrow. “La cooperación temprana y completa con las autoridades federales será recompensada, al igual que es esencial para nuestra misión de servicio público de erradicar el fraude y la corrupción pública, y hacer que nuestras comunidades sean más seguras y fuertes.”
Adjunto incluimos copias del memorando del Programa Piloto para Denunciantes y del Formulario de Admisión. También se pueden encontrar en el sitio web público de Fiscalía Federal, ubicado en https://www.justice.gov/usao-pr. Para comenzar el proceso de denuncia de irregularidades bajo este programa, el Formulario de Admisión se puede enviar por correo electrónico a [email protected].
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pr_usao_pilot_whistleblower_final.pdf pr_usao_pwp_intake_form.pdfJustice Department Sues to Shut Down Central Florida-Based Return PreparerRead the Press Release
The Justice Department filed a complaint today seeking to bar a central Florida-area return preparer from owning or operating a tax return preparation business and preparing tax returns for others.
The civil complaint against Kenia Rodriguez, also known as Kenia Legon, was filed in the U.S. District Court for the Middle District of Florida. The complaint alleges that Rodriguez, through a fictitious entity called Rodriguez Tax Services, prepared federal income tax returns on which she claimed extensive fraudulent deductions and credits to purposely underreport the taxes her customers owed and claimed refunds they were not entitled to receive. Specifically, the complaint alleges that Rodriguez prepared returns with false or inflated itemized deductions claimed on Form 1040 Schedule A and false claims for residential clean energy credits. The United States contends that Rodriguez hid her tax preparation activity by failing to properly identify herself on the tax returns that she prepared.
According to the IRS, anyone who is paid to prepare or who assists in preparing federal tax returns is legally required to have a valid Preparer Tax Identification Number (PTIN), and paid preparers must sign and include their PTIN on the return. Not signing a return, commonly known as “ghost preparation,” is often a red flag that a preparer is attempting to avoid detection by the IRS. The complaint alleges that Rodriguez operated as a “ghost preparer.”
By repeatedly understating her customers’ tax liabilities, the complaint alleges that the United States has been harmed by Rodriguez’s conduct, resulting in the significant loss in tax revenue of over $6 million since 2021. In addition to seeking an injunction against Rodriguez, the government requests an order of disgorgement to prevent Rodriguez from profiting from violating the internal revenue laws.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Attorneys from the Tax Division are handling the case.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid "ghost preparers" and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
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.
Rodriguez Complaint (Filed).pdf