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12 March 2024
Justice Department Finds Utah Prison System Discriminated Against Incarcerated Individual Based on Gender DysphoriaRead the Press Release
The Justice Department today announced its finding that the Utah Department of Corrections (UDOC) violated the Americans with Disabilities Act (ADA) by discriminating against an incarcerated transgender woman on the basis of her disability, gender dysphoria. The department’s investigation found that UDOC failed to provide the complainant (who identifies as female but was assigned male at birth) equal access to health care services after she repeatedly requested hormone therapy. UDOC also failed to make reasonable modifications to its policies and practices to treat the complainant’s gender dysphoria.
Gender dysphoria is a serious medical condition marked by clinically significant distress caused by an incongruence between the sex an individual is assigned at birth and their gender identity. Left untreated, individuals with gender dysphoria can experience serious adverse mental health outcomes.
“All people with disabilities including those who are incarcerated are protected by the ADA and are entitled to reasonable modifications and equal access to medical care, and that basic right extends to those with gender dysphoria,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to ensuring that jails and prisons throughout the country do not discriminate against people with disabilities, and that right includes people with gender dysphoria.”
The department’s investigation found that UDOC imposed unnecessary barriers to treatment for gender dysphoria that were not required for other health conditions, and unnecessarily delayed the complainant’s treatment. When UDOC finally provided her with hormone therapy, it failed to take basic steps to ensure that the treatment was provided safely and effectively.
UDOC also failed to grant the complainant’s requests for reasonable modifications including permitting her to purchase female clothing and personal items in the commissary, modifying pat search policies and individually assessing her housing requests to avoid discrimination on the basis of gender dysphoria. As a result, her gender dysphoria worsened during her incarceration at UDOC. Twenty-two months after entering custody, she performed dangerous self-surgery and removed her own testicles.
The department’s written notice to UDOC of its findings details remedial measures necessary to address them. The department’s investigation is part of its broader efforts to combat discrimination against individuals with gender dysphoria. These include the Civil Rights Division’s recently filed statement of interest clarifying that gender dysphoria can be a covered disability under the ADA and explaining that correctional institutions violate the Eighth Amendment when they categorically refuse to provide medically necessary gender-affirming care to incarcerated individuals with gender dysphoria.
The Civil Rights Division’s Disability Rights Section is handling this matter in collaboration with the U.S. Attorney’s Office for the District of Utah.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov.
Jury Finds Russian-Swedish Operator of ‘Bitcoin Fog’ Guilty of Running the Darknet Cryptocurrency MixerRead the Press Release
WASHINGTON – Roman Sterlingov, a citizen of Russia and Sweden, was found guilty today of operating among the longest-running and most prolific bitcoin money laundering services on the darknet.
The jury verdict, in U.S. District Court for the District of Columbia, was announced by U.S. Attorney Matthew M. Graves, Deputy Attorney General Lisa Monaco, Chief Jim Lee of the Internal Revenue Service (IRS)-Criminal Investigation, and FBI Assistant Director in Charge David Sundberg of the Washington Field Office.
Sterlingov, 35, was found guilty of money laundering conspiracy, sting money laundering, operating an unlicensed money transmitting business, and violations of the D.C. Money Transmitters Act. The jury also granted forfeiture to the government of several specific assets that law enforcement had previously seized, including over about 1,354 Bitcoin held in a Bitcoin Fog wallet, as well as $349,625 and various cryptocurrencies (including Bitcoin, Ethereum, Monero, and Stellar) held in seized Kraken cryptocurrency exchange accounts. U.S. District Court Judge Randolph D. Moss scheduled sentencing for July 15, 2024, and will also consider a further forfeiture money judgment. Money laundering conspiracy and money laundering sting each carry a statutory maximum sentence of 20 years in prison; unlicensed money services business and DC Code money transmission without a license each carry a maximum sentence 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.
According to the government’s evidence, Sterlingov operated Bitcoin Fog from October 2011 to April 2021. Bitcoin Fog was a cryptocurrency “mixer,” or “tumbler,” and had gained notoriety as a money laundering service for criminals seeking to hide their illicit proceeds from law enforcement. Over the course of its decade-long operation, stopped only when Sterlingov was arrested and detained, Bitcoin Fog moved well over 1.2 million bitcoin (BTC) – valued at approximately nearly $400 million at the time of the transactions. The bulk of that cryptocurrency came from darknet marketplaces and was tied to illegal narcotics, computer fraud and abuse activities, and identity theft. His service also served purveyors of child sexual abuse material (CSAM) through the notorious site Welcome to Video.
“Darknet criminals should know by now that operations like Bitcoin Fog cannot provide the anonymity for cryptocurrency transactions that they claim they can,” said U.S. Attorney Matthew M. Graves of the District of Columbia. “This conviction demonstrates that the United States can and will combat the use of technology to carry out crimes in cyberspace.”
“Roman Sterlingov thought he could use the shadows of the internet to launder hundreds of millions of dollars in bitcoin without getting caught. But he was wrong,” said Deputy Attorney General Monaco. “Our team of agents, analysts, and prosecutors were relentless in their pursuit of justice, painstakingly tracing bitcoin through the blockchain to hold Sterlingov and his Bitcoin Fog enterprise to account. Today, a jury returned guilty verdicts on all counts — showing that no matter where you operate, if your cryptocurrency service reaches the United States, you must abide by U.S. law.”
“Evidence presented at trial clearly showed that the defendant laundered hundreds of millions of illicit funds from the dark web through Bitcoin Fog in an attempt to conceal the origin of those funds,” said IRS Criminal Investigation Chief Jim Lee. “IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed.”
“For a decade, Sterlingov managed a cryptocurrency mixer that criminals used to launder millions of dollars linked to cybercrimes, narcotics sales, and child exploitation,” said Assistant Director in Charge David Sundberg. “His conviction demonstrates the FBI's commitment to working with our partners to disrupt the cybercriminal ecosystem by targeting its most technical and proficient enablers.”
“Roman Sterlingov operated Bitcoin Fog, a cryptocurrency ‘mixing’ service that allowed criminals to launder hundreds of millions of dollars in illicit funds from darknet marketplaces. The defendant and his customers believed they could use Bitcoin Fog to conceal these illicit transactions,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “As the jury’s guilty verdict shows, that belief was mistaken. The Criminal Division is committed to unmasking and prosecuting those who use technology to hide their crimes, no matter how sophisticated the scheme may be.”
At launch, Sterlingov publicized Bitcoin Fog as a tool for anonymizing bitcoin transactions and evading law enforcement. His site charged customers a fee for the service. Historically, the largest users of Bitcoin Fog were darknet markets such as Agora, Silk Road, Silk Road 2.0, Evolution, and AlphaBay. As the jury found, Sterlingov’s mixing and tumbling activity was an illegal money transmitting and money laundering service under federal law.
While the identity of a BTC address owner is generally anonymous (unless the owner opts to make the information publicly available), the evidence at trial demonstrated that law enforcement can identify the owner of a particular bitcoin address by analyzing the blockchain. The analysis can also reveal additional addresses controlled by the same individual or entity. IRS-CI’s analysis determined Bitcoin Fog received approximately 486,861.69 BTC, valued at about $54,897,316 at the time of the transactions, directly from darknet markets. Bitcoin Fog sent approximately 164,931.13 BTC (about $23,690,956 at the time of the transactions) directly to darknet markets. In sum, the anonymizer sent or received more than $78 million in transactions involving known darknet markets, counting only direct transactions.
Based on Bitcoin Fog’s transaction activity over time, Sterlingov made millions in commissions from Bitcoin Fog transactions. Investigators obtained records of Sterlingov’s true-name accounts at several cryptocurrency exchanges. Analysis of those accounts revealed the vast majority of cryptocurrency deposited into Sterlingov’s accounts was originally sourced and traced back to bitcoin clusters associated with Bitcoin Fog.
Under U.S. law, it is a crime to conspire to commit money laundering, that is, to conduct financial transactions with proceeds from unlawful activity designed to conceal the nature, location, source, ownership, or control of such proceeds. It is also a crime to conduct or attempt to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, with the intent to conceal the nature, location, source, ownership, or control of such property. It is also a crime to operate a money transmitting businesses without obtaining an appropriate money transmitting license in the state in which the service operates, or with FinCEN. The D.C. also criminalizes similar unlicensed activity.
Sterlingov was arrested April 27, 2021, at Los Angeles International Airport and has remained detained since that time.
The IRS-CI District of Columbia Cyber Crime Unit and FBI Washington Field Office investigated the case. The Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit provided invaluable assistance. Additional assistance was provided by Europol; the Swedish Economic Crime Authority (Ekobrottsmyndigheten), the Swedish Prosecution Authority, and the Swedish Police; and the General Inspectorate of Romanian Police, Directorate for Combatting Organized Crime, and the Directorate for Investigating Organized Crime and Terrorism.
Trial Attorneys Jeff Pearlman and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher B. Brown for the District of Columbia are prosecuting the case. Pelker and Brown are members of CCIPS’ National Cryptocurrency Enforcement Team (NCET). Paralegal Specialists Angela De Falco and Divya Ramjee provided valuable assistance.
Indictment Charges Danbury Resident with Fentanyl Trafficking OffenseRead 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 JAIRO ABREU, 31, of Danbury, has been charged by indictment with a fentanyl trafficking offense.
As alleged in court documents and statements made in court, an investigation by the FBI’s Northern Connecticut Gang Task Force and Hartford Police Department revealed that Abreu was trafficking fentanyl into Hartford. Abreu was arrested on state charges on October 17, 2023. Following his arrest, a search of his Danbury residence revealed approximately three kilograms of fentanyl and an additional approximately 2,000 wax sleeves containing fentanyl.
Abreu was arrested on a federal criminal complaint on February 23, 2024. On March 6, a grand jury in New Haven returned an indictment charging him with possession with intent to distribute 40 grams or more of fentanyl. Abreu appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford, entered a plea of not guilty to the charge, and was released on a $100,000 bond.
If convicted of the charge, Abreu faces a mandatory minimum term of imprisonment of five years and a maximum term of 40 years.
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.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Manchester Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone and Sean P. Mahard through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Idaho Falls Woman Sentenced to Federal Prison for Possession with Intent to Distribute 11,000 Fentanyl PillsRead the Press Release
BOISE – Patricia Gomez, 42, of Idaho Falls, was sentenced to 70 months in federal prison for possession with intent to distribute fentanyl, U.S. Attorney Josh Hurwit announced today. In imposing the sentence, U.S. District Judge Amanda K. Brailsford ordered that Gomez serve three years of supervised release after her term of incarceration.
According to court records, Gomez conspired with four codefendants to distribute fentanyl. Three of the codefendants – Juan Villa, 34, Tyson Mitchell, 37, and Kevin Sermon, 34, were incarcerated for prior drug crimes during the conspiracy. Villa had been arrested after bringing 20,000 fentanyl pills into Idaho. Villa, Mitchell, and Sermon recruited Gomez and Summer Jones, 37, of Idaho Falls, to receive drugs from a California based source of supply and transport the drugs to Idaho for further distribution.
Around May 29, 2023, Gomez traveled outside of Idaho to obtain a drug load in furtherance of the conspiracy. On May 30, 2023, Gomez returned to Idaho. Investigators stopped her vehicle and arrested her with 11,000 fentanyl pills.
Villa, Mitchell, Sermon, and Jones have all pleaded guilty to federal drug crimes and are awaiting sentencing in April and May.
U.S. Attorney Hurwit commended the cooperative efforts of the Idaho Falls Police Department, the Idaho State Police, and the Drug Enforcement Administration for their work on these cases. Assistant U.S. Attorneys Christopher Atwood and Francis Zebari prosecuted these cases.
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.
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Honduran National Sentenced to 9 Years for Massive Immigration Fraud SchemeRead the Press Release
MOBILE, AL – A Honduran national living in Pensacola, Florida has been sentenced to nine years in federal prison for orchestrating a massive immigration fraud scheme involving over 425 victims nationwide.
According to court documents, Franklin Javier Perez-Rios, age 29, orchestrated a fraud scheme from 2017 through 2023 in which he claimed to be able to provide immigration-related services to foreign nationals living in the United States. As part of this scheme, Perez-Rios, who had no legitimate qualifications, pretended at various times to be a current United States government official, a former United States government official, an immigration attorney, a paralegal, or other immigration services professional. Believing that Perez-Rios could help them gain lawful status in the United States, hundreds of victims in Florida, Alabama, and at least fourteen other states paid Perez-Rios thousands of dollars each for what they believed were legitimate, legal immigration services. Foreign national victims hired Perez-Rios with the hope that he could help them achieve legal status after years of residing in the United States.
Perez-Rios did not obtain status for any of the victims as he promised. Rather, he routinely filed asylum paperwork with United States Citizenship and Immigration Services (“USCIS”) on the victims’ behalf, and then told them that they had to travel to California with him where they were subject to medical examinations and vaccinations. Neither the medical examinations nor the trips to California were legitimately part of the asylum process. For other victims, Perez-Rios filed no paperwork on their behalf despite saying he would. To keep the victims believing he was working on their behalf, Perez-Rios provided them with forged documentation supposedly from the United States Government. These forged documents led many victims to believe that they had obtained legal status in the United States when, in fact, they had not.
Victims paid Perez-Rios several thousand dollars each, often in cash, for his sham immigration services. Victims were falsely led to believe that much of this money consisted of “fees” that they had to pay to the United States government, including a fictitious “forgiveness fee” for illegally entering the United States. Perez-Rios profited at least $2.8 million dollars from victims during this scheme, and he used this money for gambling and to fund his lavish lifestyle.Approximately 50 victims attended Perez-Rios’s sentencing hearing on March 8, and many explained to U.S. District Court Judge Kristi DuBose how this scheme affected them. Most victims were from Spanish speaking countries, and they believed that Perez-Rios was one of their own, someone they could trust in their efforts to obtain legal status. The victims explained that Perez-Rios preyed on this trust and exploited their naivete concerning the actual immigration process. Many victims missed important deadlines to apply for asylum because they believed Perez-Rios was doing so on their behalf. All the victims who spoke at the sentencing hearing described how Perez-Rios abused their trust.
Perez-Rios pleaded guilty to nine counts of wire fraud associated with the scheme, and the United States recommended a sentence at the high end of the advisory guidelines range. Judge DuBose agreed with the United States’ recommendation and sentenced Perez-Rios to 108 months in prison followed by three years of supervised release. Judge DuBose entered a forfeiture money judgment against Perez-Rios for over $2.8 million, representing the amount of illegal proceeds obtained from his scheme. Perez-Rios was also ordered to pay nearly $2.5 million dollars in restitution to victims of his scheme.
“This defendant exploited vulnerable victims and abused their trust, twisting the United States immigration process to his own selfish ends,” said United States Attorney Sean P. Costello. “Working with our partners in law enforcement, we will bring to justice anyone who tries to take advantage of the immigration system to line their own pockets.”
Homeland Security Investigations (HSI) Mobile and Pensacola led this investigation in collaboration with USCIS’s Fraud Detection and National Security Directorate (FDNS). Several other agencies assisted HSI in this investigation including the Florida Department of Law Enforcement (FDLE), United States Customs and Border Protection (USCBP) Office of Field Operations, United States Border Patrol (USBP) Mobile Station, Pensacola Police Department, Internal Revenue Service (IRS), and the Florida Highway Patrol (FHP).
Assistant U.S. Attorneys Justin D. Kopf and Christopher J. Bodnar prosecuted the case on behalf of the United States. Assistant U.S. Attorneys Amanda Gordon and Ryan Love of the United States Attorney’s Office for the Northern District of Florida also assisted in the successful prosecution of this case.
If you believe Perez-Rios filed an application on your behalf, you can call the USCIS Customer Service hotline at 1-800-375-5283 and inquire on the status of your immigration application. The hotline is operational from 8 am to 8 pm Eastern Standard Time (EST) Monday through Friday. If you know your Alien Registration number (also referred to as your A Number) and/or receipt number, you can check the status of your case online at https://www.uscis.gov/tools/checking-your-case-status-online. You should also update your contact information for any pending applications with USCIS. Information on how to update your address with USCIS can be found at https://www.uscis.gov/addresschange.
Guatemalan National Charged with Illegal ReentryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Cesar A. Reyes-Garcia, age 43, of Guatemala, was indicted on March 6, 2024, by a federal grand jury for illegal reentry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, the indictment alleges that Reyes-Garcia was previously removed from the United States on June 11, 2015, through Harlingen, Texas, and it is alleged that he was subsequently found in the United States without having first obtained legal permission to reenter the country. The indictment also alleges that on January 16, 2023, Reyes-Garcia was encountered in Lebanon County, Pennsylvania.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations. Assistant United States Attorney Stephen Dukes is prosecuting the case.
The maximum penalty under federal law for this offense is two years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Grand jury indicts 2 Central Ohio women in $2.8 million in COVID-relief fraud schemeRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged two Central Ohio women with crimes related to fraudulently receiving more than $2.8 million total in covid-relief funds from the Paycheck Protection Program (PPP).
Lorie A. Schaefer, 62, of Westerville, allegedly received nearly $1.9 million in covid-relief funds by fraudulently claiming an affiliation with an Ohio pizza company.
According to the indictment, Schaefer opened new bank accounts in December 2020 prior to registering a fictitious business name with the State of Ohio in March 2021.
It is alleged that Schaefer fraudulently claimed affiliation with the Flying Pizza restaurants in Dayton, Centerville and Fairborn. When notified that a PPP loan for nearly $1.9 million had been filed in the name of Flying Pizza, individuals at the family-owned business said their restaurants could not justify such a large loan.
Schaefer claimed to have 98 employees and allegedly submitted altered bank records as part of her application. Schaefer also claimed the business was established in March 2021, even though the original Flying Pizza was established in 1984. Additionally, she claimed not to be under indictment despite having pending theft charges in Meigs County. Schaefer allegedly attached multiple fraudulent documents to her PPP application, including a bank statement, tax records, and a letter from the IRS.
Bank records indicate Schaefer improperly used PPP funds for personal expenses, for example, nearly $26,000 on liposuction, a $10,000 check for a “newborn baby gift,” and more than $900,000 to purchase and renovate a condominium in Westerville. Schaefer also allegedly made purchases at Wayfair, Lamps Plus, Kroger, KFC, Burger King, Arby’s, McDonald’s and Olive Garden. Evidence also suggests Schaefer used the fraud proceeds to purchase vehicles in Ohio and property in Australia for her personal use.
Schaefer allegedly assisted co-defendant Latisha C. Holloway, 42, of Reynoldsburg, in fraudulently receiving more than $980,000 in PPP loans.
Holloway allegedly claimed to own a business called Jaguar Logistics, LLC. Holloway stated on loan application documents that she had 76 employees and had a total gross income of $4.9 million. Her loan application was submitted within a month of Schaefer receiving PPP loans and records indicate Holloway wired Schaefer $180,000 after receiving her own loan money. According to court records, Holloway similarly attached fraudulent documents to her PPP loan, including a bank statement and tax records.
Both defendants allegedly collected unemployment benefits after receiving federal covid-relief funds.
Finally, it is alleged that Schaefer used another individual’s Social Security Number to apply for and receive an additional $20,800 in PPP funds for “LS Associates,” a corporation established by Schaefer.
The indictment charges each woman with two counts of wire fraud and one count of money laundering. Wire fraud is punishable by up to 20 years in prison and money laundering carries a potential penalty of up to 10 years in prison.
Schaefer and Holloway were arrested in August 2023 and originally charged at that time by criminal complaint.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the case, which was investigated by the U.S. Department of Transportation Office of Inspector General and the Federal Bureau of Investigation (FBI), Cincinnati Division. Assistant United States Attorney David J. Twombly is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Fort Leonard Wood Pharmacist Sentenced for Knife AttackRead the Press Release
SPRINGFIELD, Mo. – A civilian pharmacist at Fort Leonard Wood, Mo., was sentenced in federal court today for attempting to murder his supervisor with a knife and stabbing him multiple times.
Robert E. Sapp, 65, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years and seven months in federal prison without parole.
On May 1, 2023, Sapp pleaded guilty to one count of assault with intent to commit murder.
Sapp was working at a dispensing window at the Post Exchange Pharmacy at Fort Leonard Wood on Dec. 3, 2021, when he was approached by the supervisory pharmacist who suggested they have a conversation in another area of the pharmacy. Video footage depicts Sapp reaching into his front right pocket, pulling out a knife, and opening the blade. Sapp held the knife behind his back as he approached the supervisor in another area of the pharmacy. Sapp lunged toward the supervisor with the knife, knocked him to the ground, and continued stabbing at his face and head. Another pharmacy employee interrupted the attack. Sapp put the knife in his pocket and left the pharmacy.
Military Police Service activated an installation shut down, and Sapp was detained while attempting to leave in his vehicle. An MP who arrested Sapp after extracting him from his vehicle found a knife, which had hair and blood on it, in his pocket. There was blood on Sapp’s clothing. The vehicle also had blood on the interior of the driver’s side door.
The victim of the stabbing was transported to the General Leonard Wood Army Community Hospital. Medical personal reported he had multiple stab wounds, including at least two stab wounds to his head.
This case was prosecuted by Assistant U.S. Attorneys Ami Harshad Miller and Jessica R. Eatmon. It was investigated by the U.S. Army Criminal Investigation Command.
Former Jacksonville Jaguars Employee Sentenced to More Than Six Years for Embezzling in Excess of $22 MillionRead the Press Release
Jacksonville, Florida – U.S. District Judge Henry L. Adams today sentenced Amit Patel (31, Jacksonville) to six years and six months in federal prison for committing wire fraud and engaging in an illegal monetary transaction. As part of his sentence, the court entered an order of forfeiture in the amount of $22,221,454.40, the proceeds of the wire fraud charge. Patel was also ordered to pay full restitution to the Jacksonville Jaguars, the victim of his offense and his former employer. Patel pleaded guilty on December 14, 2023.
According to court documents, Patel operated a fraud scheme through which he embezzled approximately $22,221,454 from the Jaguars. Specifically, Patel used his role as the administrator for the team’s virtual credit card (VCC) program to make hundreds of purchases and transactions with no legitimate business purpose. Then, to hide and continue to operate the scheme, rather than accurately report his VCC transactions, Patel created accounting files that contained numerous false and fraudulent entries and emailed them to the Jaguar’s accounting department. Patel used a variety of methods to hide his illicit transactions by omitting them from the files, while still having the total dollar amount of VCC expenditures match the balances paid by the Jaguars for the VCC program line of credit. For example, to hide his fraudulent VCC transactions, Patel identified legitimate reoccurring VCC transactions, such as catering, airfare, and hotel charges, and then duplicated those transactions; he inflated the amounts of legitimate reoccurring VCC transactions; entered fictitious transactions that sounded plausible, but that never actually occurred; and moved legitimate VCC charges from upcoming months into the month of the accounting file that was immediately due to the accounting department.
Patel’s fraudulent transactions began in September 2019 and continued until he was fired by the Jaguars in February 2023. He used the proceeds of this scheme, in whole or part, to place bets with online gambling websites, to purchase a condominium in Ponte Vedra Beach, Florida, to pay for personal travel for himself and friends (including chartering private jets and booking luxury hotels and private rental residences), to acquire a new Tesla Model 3 sedan and Nissan pickup truck, to pay a criminal defense law firm, and to purchase cryptocurrency, non-fungible tokens, electronics, sports memorabilia, a country club membership, spa treatments, concert and sporting event tickets, home furnishings, and luxury wrist watches. Patel did not report any of this illicit income on his tax returns.
“This case exemplifies the FBI’s relentless effort to protect American companies and their customers,” said Mark Dargis, Acting Special Agent in Charge of the FBI Jacksonville Division. “Amit Patel knowingly and wittingly created a deceptive scheme to fund a lavish lifestyle at his employer’s expense, and today’s sentencing is a warning to other scam artists: the FBI and our partners will continue to aggressively pursue corporate fraud investigations to protect consumers from bearing the costs associated with criminal activity.”
“Today, the IRS intercepted Patel’s playbook and achieved justice for the American public. Patel deceived the Jacksonville Jaguars and used his position of trust to steal from the team, gamble on games and fund a lavish lifestyle,” said IRS-CI Acting Special Agent in Charge Lani Rosado-Espinal. “IRS-CI will continue to work with our law enforcement partners to provide the financial expertise to unravel sophisticated fraud and money laundering schemes.”
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Brenna Falzetta and Michael J. Coolican. The asset forfeiture is being handled by Assistant United States Attorneys Mai Tran and Jennifer Harrington.
Former Cedar Rapids Resident Sentenced to Federal Prison in COVID-19 Pandemic Loan SchemeRead the Press Release
A former Cedar Rapids, Iowa, resident who helped other individuals procure more than 30 false and fraudulent COVID-19 pandemic loans, valued at more than $600,000, was sentenced on March 8, 2024, to six months in federal prison. Diamond Davies, age 24, from Maple Grove, Minnesota, received the prison term after a July 31, 2023 guilty plea to one count of wire fraud.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted in late March 2020 that provided emergency financial assistance, including Paycheck Protection Program (“PPP”) loan funds, to the millions of Americans who were suffering the economic effects of the COVID-19 pandemic. Evidence at Davies’s plea and sentencing hearings showed that, over a two-month period in 2021, Davies helped to facilitate approximately 50 fraudulent PPP loan applications with a total value of approximately $1 million. Of these fraudulent PPP applications, over 30 were successful, and the government and its participating lenders in the PPP lost over $600,000. To obtain the fraud proceeds, false, fraudulent, and fictitious documents and statements, including fake tax documents, were submitted to various lending institutions in support of the PPP loans for the PPP applicants. Davies helped collect a fee (a portion of the fraudulent loan proceeds) from some of the PPP applicants.
Davies was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Davies was sentenced to six months’ imprisonment. She was ordered to make $651,582 in restitution to the Small Business Administration and one of its participating lenders. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department's response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Davies is being held in United States Marshal’s custody until she can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Small Business Administration, Office of the Inspector General and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-9.
Follow us on Twitter @USAO_NDIA.
Federal Jury Finds Large-Scale Pittsburgh Fentanyl Trafficker Guilty of Drug and Money Laundering OffensesRead the Press Release
PITTSBURGH, Pa. - After deliberating for three hours, a federal jury late on the afternoon of March 8, 2024, found Paris Carter guilty of conspiracy to distribute 400 grams or more of fentanyl and 100 grams or more of acetyl fentanyl and conspiracy to commit money laundering, United States Attorney Eric G. Olshan announced today.
Carter, 34, formerly of Pittsburgh, Pennsylvania, was tried before United States District Judge Marilyn J. Horan in Pittsburgh.
Evidence introduced during the five-day trial established that, between January 2017 and February 2018, Carter arranged for the illegal importation of multiple kilograms of fentanyl and acetyl fentanyl directly from China and then distributed those drugs throughout the Pittsburgh region. Using the proceeds of his drug trafficking, Carter moved to Beverly Hills, California, where he rented two separate homes at costs of $10,000 and $14,500 per month and also leased three vehicles—two Bentleys and a Mercedes Benz. As part of his money laundering activity, Carter used other individuals to initiate financial transactions in their names to pay for the drugs obtained from China. He also provided drug proceeds to approximately seven other individuals who used these illicit funds to purchase cashier checks that Carter then used as downpayments on his vehicles, which he arranged to lease in the name of his aunt and co-defendant, Tamara Carter, whom the jury acquitted at trial.“Paris Carter flooded the Pittsburgh area with substantial quantities of fentanyl from China and lived large on the proceeds, moving to Beverly Hills and driving multiple Bentleys,” said U.S. Attorney Olshan. “Now, he faces a minimum sentence of 15 years’ imprisonment. We thank our law enforcement partners at the U.S. Postal Inspection Service and Pennsylvania State Police for their critical partnership in holding one of our region’s most significant fentanyl distributors accountable for his crimes.”
“The guilty verdict of Paris Carter was the culmination of years of tireless efforts by all of our law enforcement partners involved,” said Lesley Allison, Inspector in Charge of the Pittsburgh Division of the United States Postal Inspection Service. “Carter purchased kilos of fentanyl from China during the height of the opioid epidemic and used the proceeds to fund a lavish lifestyle with no regard to the health or safety of the American public. The U.S. Postal Inspection Service takes great pride in upholding our commitment to rid the U.S. Mail of these illicit and dangerous substances.”
During trial, the Court also was informed that Carter had previously been convicted in the Western District of Pennsylvania of a serious drug felony—namely, possession with the intent to distribute heroin, for which he was sentenced to 37 months of imprisonment in 2011.
Judge Horan scheduled sentencing for June 28, 2024. The law provides for a maximum total sentence of at least 15 years and up to life in prison, a fine of $20.5 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorneys Brendan T. Conway and Brendan J. McKenna prosecuted this case on behalf of the United States. The United States Postal Inspection Service and Pennsylvania State Police conducted the investigation of Carter.
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.
Federal Jury Convicts Felon on Drug, Firearms ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Timothy Martinez, age 46, of Pueblo, was found guilty on one count of possession of methamphetamine with an intent to distribute, one count of possession of para-flurofentanyl with an intent to distribute, one count of carrying a firearm during and in relation to a drug trafficking crime, and one count of being a felon in possession of a firearm. A federal jury in Denver returned a guilty verdict against Martinez on Thursday, March 7, 2024.
According to the facts established at trial, Martinez was well known to the Pueblo Police Department. When he was arrested in July of 2023 on an unrelated active warrant, officers found a loaded semiautomatic handgun, fentanyl pills, methamphetamine, other drugs, and various types of ammunition. Martinez has prior felony convictions for aggravated battery, sex assault, failure to register as a sex offender, trespassing, domestic violence, controlled substance possession, and possession of a controlled substance with an intent to distribute.
“The Office of the United States Attorney in Colorado continues to work toward our goal of making our state safer by getting criminals like this off the streets,” said Cole Finegan, United States Attorney for the District of Colorado. “Once again, this type of conviction is made possible by effective, local, state, and federal partnerships.”
“The FBI is committed to working with local law enforcement to stamp out violent crime and protect our communities. Federal task forces augment local agencies with specialized investigative resources and open pathways for federal prosecution. That is what happened in this case worked by our Organized Crime Drug Enforcement Task Force with Pueblo Police” said FBI Denver Special Agent in Charge Mark Michalek. “This conviction should send a clear message that we will continue to pursue the most violent and persistent offenders and hold them accountable to the fullest extent of the law.”
United States District Court Judge Daniel D. Domenico presided over the jury trial. Martinez will be sentenced later.
The FBI conducted the investigation. Assistant United States Attorneys Aly Mance and Dustin Andre-Vandenberg handled the prosecution.
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.
Case Number: 23-CR-00347
Federal Judge Finds Man Guilty of Obstructing the Freedom of Access to a Clinic EntranceRead the Press Release
COLUMBIA, S.C. — Steven Clark Lefemine, 68, of West Columbia was found guilty yesterday of violating the Freedom of Access to a Clinic Entrances (FACE Act) by a federal judge following a bench trial. This is the first FACE Act conviction in South Carolina.
The FACE Act provides criminal penalties for blocking access to any facility that provides reproductive health care services, including abortions. Evidence presented during trial showed that on Nov. 15, 2022, Lefemine sat in front of the entrance to Planned Parenthood South Atlantic (PPSA) in Columbia and blocked access to the facility. Testimony provided by employees of PPSA indicated that the clinic provides a litany of reproductive services, including birth control, mental health counseling, pregnancy testing and planning, prenatal and postpartum services as well as abortion. PPSA staff is familiar with Lefemine because he frequently protests the operation of the clinic. PPSA staff members preserved the incident via video and audio recording. Lefemine elected to act as his own attorney during the case. During his testimony, he admitted blocking the doors to the clinic to prevent the clinic from performing abortions.
“We will protect South Carolinians’ right to peacefully protest, but we will also protect their right to access healthcare facilities,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “Lefemine’s protest became unlawful when he physically prevented patients from entering Planned Parenthood.”
United States District Judge Joseph A. Anderson presided over the bench trial, which lasted one day. Lefemine faces a maximum penalty of six months in federal prison. He also faces a fine of up to $10,000, and one year of supervision to follow the term of imprisonment. Judge Anderson will sentence Lefemine after receiving and reviewing a sentencing report prepared by the U.S. Probation Office
This case was investigated by the FBI Columbia Field Office and the Columbia Police Department. Assistant U.S. Attorney T. DeWayne Pearson is prosecuted the case.
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Duwamish River Settlement Provides Benefits to Fish, Wildlife and Local CommunitiesRead the Press Release
Today the Elliott Bay Trustees announced a settlement with General Recycling of Washington LLC (General Recycling) and its affiliates – Nucor Steel Seattle Inc. and the David J. Joseph Company – related to natural resource injuries caused by hazardous contaminants released into Seattle’s Lower Duwamish River.
The Elliott Bay Trustees include the United States, on behalf of the National Oceanic and Atmospheric Administration (NOAA); the Department of the Interior represented by the U.S. Fish & Wildlife Service; the State of Washington, on behalf of the Department of Ecology and Department of Fish and Wildlife; the Muckleshoot Indian Tribe; and the Suquamish Indian Tribe of the Port Madison Reservation.
As part of the settlement, the companies will construct and maintain a habitat restoration project at the General Recycling facility, located on the west bank of the Lower Duwamish River. It will provide nearly three acres of off-channel habitat for fish and other wildlife and natural resources injured by contamination. This habitat will provide refuge areas and food sources for wildlife and various fish species, including juvenile salmon migrating from upriver spawning areas.
The settlement also requires the companies to reimburse a proportion of costs incurred by the Trustees to assess natural resource damages in the river totaling more than $360,000.
The settlement and project resolve claims alleged under federal and state laws for natural resource damages stemming from releases of oil and hazardous substances from the General Recycling facility.
“This settlement will provide critically needed habitat in the Lower Duwamish River that will provide significant benefits to important natural resources in the region,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.
“NOAA is pleased to join this agreement with our co-trustees, private partners and industry to help restore vital habitats, fisheries and wildlife injured by pollution at this site,” said Assistant Administrator Nicole LeBoeuf for NOAA’s National Ocean Service. “Clean and productive waterways are vital to Tribal and local communities for their cultural and economic well-being and this restoration will especially benefit those who have been disproportionately impacted by pollution.”
“This agreement marks an important step towards restoration of salmon habitat in the Duwamish River, which is essential for the recovery of salmon species and for the exercise of the treaty fishing rights of the Suquamish people as guaranteed by the 1855 Treaty of Point Elliott,” said Chairman Leonard Forsman of the Suquamish Tribe. “The Salish Sea, and the marine life that depend on it, are precious resources to the Suquamish people. We look forward to continued progress in reversing the damage done by years of pollution and destructive land use. With this settlement, and more that are on the way, we are beginning to see what restoration of habitat looks like, and that means strengthening our treaty fishery and our way of life.”
“This project on the Duwamish River will restore habitat for fish, wildlife and birds in a crucial estuarine environment,” said Washington State Supervisor Brad Thompson of the U.S. Fish & Wildlife Service. “It exemplifies what can be accomplished when partners come together to develop a common vision and then work side by side to realize that vision.”
“Ecology is pleased General Recycling and co-trustees have reached this settlement that will aid the recovery of the Lower Duwamish River, benefiting both wildlife and Washington residents,” said Natural Resource Trustee Michael L. Blanton for the Washington State Department of Ecology.
“The Washington Department of Fish and Wildlife fully supports this project that will restore valuable out-migrating juvenile salmonid habitat, while also removing a significant amount of shoreline armoring, shoreline debris, and creosote-treated pilings, a source of PAH contamination harmful to fish and wildlife,” said Trustee Representative Laura Arber for the Washington Department of Fish and Wildlife. “This rearing habitat, in a heavily industrialized area, will benefit multiple species including ESA listed juvenile salmonids in the Lower Duwamish estuary and bring us one step closer to salmon recovery.”
The Elliott Bay Trustees developed a Draft Restoration Plan and Environmental Assessment (RP/EA) analyzing the environmental benefits and impacts of the project, which is also subject to a 30-day comment period. A copy of the draft RP/EA is available here.
This settlement is part of a series of early settlements with polluting parties for natural resource damages in the Lower Duwamish River. More information about the Lower Duwamish River Natural Resource Damage Assessment is online at: https://darrp.noaa.gov/hazardous-waste/lower-duwamish-river.
Today’s settlement was filed by the Justice Department’s Environmental Enforcement Section in the U.S. District Court for the Western District of Washington. It is subject to a 30-day public comment period and court approval. To view and comment on the proposed Consent Decree, visit the department’s website: www.justice.gov/enrd/consent-decrees.
Dunn County Man Charged with Production of Child PornographyRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on March 12, 2024, a federal grand jury returned a two-count indictment alleging that Nicholas A. Viste (age: 26) of the City of Menomonie, Dunn County, Wisconsin, produced child sexual abuse material (“CSAM”) in violation of Title 18, United States Code, Section 2251(a).
According to the indictment, on August 6th and 7th of 2022, Viste employed, used, persuaded, and coerced a minor to take part in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. If convicted, Viste faces a mandatory 15 years’ imprisonment and up to 30 years’ imprisonment as to each count charged in the indictment.
This case was investigated by the City of Menomonie Police Department and the Manitowoc County Sheriff’s Office. Assistant United States Attorney Daniel R. Humble will prosecute the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact:
Public Information Officer
(414) 297-1700
Drug Traffickers Sentenced for Importing Fentanyl and Methamphetamine from Mexico to Metro-AtlantaRead the Press Release
ATLANTA – Alba Ordoñez-Ordoñez has been sentenced to federal prison for conspiring to transport and distribute fentanyl disguised as oxycodone pills and methamphetamine, in Metro-Atlanta. Jose Guadalupe Canizales-Rivera was also sentenced for his role in assisting Ordoñez-Ordoñez with her methamphetamine operation.
“These sentences reflect the grave risks to public safety created by drug traffickers who disguise dangerous narcotics as legitimate medication,” said U.S. Attorney Ryan K. Buchanan. “We are grateful to our federal and local law enforcement partners for their collaboration in helping to keep our communities safer from deadly drugs like fentanyl and methamphetamine.”
“Together, we were able to prevent very dangerous drugs from reaching the streets. I’m proud to stand alongside our partner agencies as we work to stop these criminal enterprises that pollute our neighborhoods with their poison,” said Acting Special Agent in charge Anthony J. Patrone who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI will continue to work with our federal, state and local law enforcement partners to disrupt and dismantle these drug trafficking organizations and prevent them from flooding our communities with illicit drugs.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: on February 17, 2021, U.S. Customs and Border Protection officers in Erlanger, Kentucky conducted a border search of a shipment bound for Georgia. The shipment, which contained an air conditioning unit, entered the United States from Mexico. The search revealed more than two kilograms of a white powder hidden inside the compressor of the air conditioner, which tested positive for methamphetamine.
Homeland Security Investigations special agents and task force officers in Atlanta made a controlled delivery of the drugs to the shipment’s intended destination, a residence in Norcross, Georgia. Alba Ordoñez-Ordoñez, who was accompanied by Jose Guadalupe Canizales-Rivera, arrived at the location and signed for the package. Ordoñez-Ordoñez and Canizales-Rivera were disassembling the air conditioner at the same time agents executed a search warrant at the residence. Inside the residence, agents discovered over 700 grams of crystal methamphetamine, a mailed package containing more than 4,000 pills with markings like oxycodone that actually contained lethal amounts of fentanyl, and drug trafficking paraphernalia.
Further investigation revealed that Ordoñez-Ordoñez had previously traveled to Texas to obtain and transport to her residence approximately 16 kilograms of methamphetamine. She then manufactured and crystalized this methamphetamine in her kitchen. During this process, she exposed her six-year-old daughter to the drug fumes, causing the child to become ill.Alba Ordoñez-Ordoñez, 43, of Honduras, was sentenced on March 12, 2024, by U.S. District Judge Steven C. Jones, to 138 months of imprisonment, followed by five years of supervised release.
Jose Guadalupe Canizales-Rivera, 33, of Mexico, was previously sentenced on August 9, 2022, to five years, three months in prison to be followed by five years of supervised release.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with invaluable assistance provided by U.S. Customs and Border Protection.Assistant U.S. Attorneys Calvin A. Leipold, III and Rebeca M. Ojeda prosecuted the case.
This prosecution 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. The specific mission of the Atlanta Strike Force is to disrupt, dismantle, and prosecute the highest-level members of international drug cartels and transnational criminal organizations that have operations in metro Atlanta and throughout the United States.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
District Man Admits Defrauding Covid-19 Tenant Assistance ProgramRead the Press Release
WASHINGTON – Ronald Allen, Jr., 54, of Washington, D.C., pleaded guilty today in Superior Court to one count of first-degree theft and one count of false statements for fraudulently obtaining and keeping $31,044 from a Covid-19 tenant assistance program, announced U.S. Attorney Matthew M. Graves and Daniel W. Lucas Inspector General for the District of Columbia.
At today’s plea hearing, Allen admitted that in July and September of 2021, he submitted false information on two separate applications to the Stronger Together by Assisting You (STAY DC) program, a DC government program established in 2021 to help cover rent and utilities for renters suffering hardship from the Covid-19 pandemic. Allen falsely stated that he had earned no income in 2020 or 2021, and falsely stated that his work had stopped because of the pandemic when, in fact, he maintained steady income during both years from several sources. Based on Allen’s false statements, the DC government sent Allen two checks, totaling $31,044, that Allen had promised to use to pay back rent and utilities. Allen admitted that he did not use any of that money to pay his outstanding rent obligations, or utilities, as required by the terms of the program, and instead spent all of the STAY DC money on luxury goods, travel, dining, and other personal expenses. As part of the plea agreement, Allen agreed to pay full restitution, in the amount of $31,044.
The Honorable Jason Park accepted Allen’s guilty plea and scheduled sentencing for May 3, 2024.
In announcing the guilty plea, U.S. Attorney Graves and Inspector General Lucas commended the work of those who investigated the case from the District of Columbia Office of the Inspector General. The case was prosecuted by Special Assistant U.S. Attorney Micah Bluming, on detail from the DC Office of the Attorney General to prosecute matters involving fraud and public corruption.
Detroit-Area Man Found Guilty of Maliciously Setting Fires to Truck Trailers of Major Commercial Trucking CompanyRead the Press Release
RIVERSIDE, California – A Michigan man was found guilty by a jury today of maliciously setting fires to six semi-trailers belonging to a major commercial trucking company in the Inland Empire and High Desert during a 10-month span.
Viorel Pricop, 66, of Allen Park, Michigan, was found guilty of six counts of arson of vehicle or property in interstate commerce. Pricop has been in federal custody since October 2022.
According to evidence presented at a 16-day trial, from December 2021 to September 2022, Pricop maliciously set fire to six semi-trailers belonging to Swift Transportation, a Phoenix-based commercial trucking company. Four of the arsons occurred in San Bernardino County (Newberry Springs, Ludlow, Barstow, and Hesperia) and two occurred in Riverside County (Coachella).
In each of the incidents, the Swift-owned trailer was parked at or near a truck stop when a fire occurred on the trailer portion of the vehicle, mainly on or near the trailer tires.
Pricop set on fire at least 18 additional Swift Transportation semi-trailers in other states from June 2020 to March 2022, according to an affidavit previously filed in this case. These incidents occurred at locations spanning from Barstow, California to McCalla, Alabama, with most incidents occurring along Interstate 10 and Interstate 40, the affidavit states. Federal criminal charges associated with some of these fires were filed against Pricop in the District of New Mexico and the District of Arizona.
“This defendant went on a rampage of retaliation against a victim of his last crime,” said United States Attorney Martin Estrada. “Rather than take advantage of the second chance offered to him, he chose an incredibly reckless and dangerous path. We will not accept arson and other violent crime on our streets, and I am grateful that this defendant will now be held to account.”
“We have methodically worked each of the fire scenes, collected evidence, interviewed witnesses, and reviewed video footage to help us solve these arson cases,” said Special Agent in Charge Brendan Iber of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Phoenix Field Division. “ATF’s certified fire investigators will continue to enforce federal laws pertaining to arson and support our state and local police and fire investigators.”
“Since beginning the work to solve this case, our arson investigators did a great job of looking at each fire to put the pieces together,” said New Mexico State Fire Marshal Randy Varela. “We know how important our partnerships with other agencies are, especially with a case that spans across multiple states, and we are proud of the work that we were able to do together to catch this arsonist.”
Swift Transportation hired a fire investigation consultant to assist with fire scene examinations. A pattern began to develop when multiple reports noted substantially similar methods of lighting the trailers on fire, including where on the vehicles the fires began, and the fact the fires occurred during the middle of the night.
A review of cell tower data near some of the fires showed that a specific device – later found to be a navigation device installed in a commercial tractor-style truck – connected to cell towers near many of the fires at or around the times of the fires. Law enforcement determined that this device was installed on a vehicle operated by Pricop. Law enforcement also identified the cellphone subscribed to Pricop and, after obtaining court authorization, obtained historical cellular data and real-time location information for Pricop’s cellphone. Analysis of this data showed that Pricop’s cellphone was present in the general area of all California fires, as well as the 18 additional fires across the country.
In September 2022, search warrants were executed on Pricop’s tractor-trailer, personal vehicle and residence, yielding additional evidence corroborating his involvement in this series of arsons. This evidence included a gas torch, torch-style lighters, and record keeping documents containing location information, such as cargo pickup and delivery dates which coincided with the time and location of several fires in the series of 24 fires across the country.
Swift Transportation and other trucking companies were victims of thefts between 2010 and 2014. Swift initiated its own investigation into those thefts and utilized bait trailers to catch thieves. In 2015, someone broke into one of the bait trailers and took boxes of electronic goods containing tracking devices. Swift investigators tracked those boxes to a storage facility in Michigan, and local law enforcement in Michigan arrested Pricop in possession of the boxes of electronic goods from the bait trailer.
Pricop was convicted in 2018 in the Eastern District of Michigan for a tax offense and for transportation of stolen goods, charges stemming from the investigation conducted by Swift. Pricop was sentenced to time served in that case, amounting to approximately 26 months’ imprisonment. His term of supervised release ended in June 2019, approximately one year before the arsons in this case began.
United States District Judge Sunshine S. Sykes scheduled a June 7 sentencing hearing, at which time Pricop will face a mandatory minimum sentence of five years in federal prison and a statutory maximum of 20 years in federal prison for each count.
ATF and the New Mexico State Fire Marshal’s Office investigated this matter.
Assistant United States Attorneys Cory L. Burleson, Sean D. Peterson and Mitchell M. Suliman of the Riverside Branch Office are prosecuting this case.
Convicted Felon Found Guilty at Trial of Robbing Truist Bank in MaconRead the Press Release
MACON, Ga. – A Macon resident was found guilty by a federal jury today of robbing the Truist Bank on Riverside Drive in Macon in 2023 while on federal supervised release for illegally possessing a firearm.
Gabriel Bell, 29, of Macon, was found guilty of one count of bank robbery on March 12 following a two-day trial that began on Monday, March 11. Bell faces a maximum sentence of 20 years in prison to be followed by five years of supervised release. U.S. District Chief Judge Marc Treadwell is presiding over the case. A sentencing date will be scheduled by the Court.
“Gabriel Bell terrorized Truist employees when he entered the bank and demanded money while threatening to shoot them,” said U.S. Attorney Peter D. Leary. “People should be safe to conduct their everyday business without fear or intimidation; sending Bell back to federal prison will further that goal.”
“Bell’s prior prison time was apparently not enough for him because he returned to his robbing ways while he was still on supervised release for the last crime he committed,” said Robert Gibbs, Supervisory Senior Resident Agent of FBI Atlanta’s Macon Office. “Thanks to the assistance of our partners with the Bibb County Sheriff’s Office, he’ll have up to 20 years in federal prison to think about what he’ll do the next time he is released from prison.”
“We want to thank those tipsters who gave information identifying Gabriel Bell as the robber,” said Bibb County Sheriff David J. Davis. “Committed public involvement coupled with good investigative follow-up resulted in this repeat offender being held accountable for yet another unlawful deed.”
According to court documents and evidence submitted at trial, Bell walked into the Truist Bank at 2998 Riverside Drive in Macon on Feb. 16, 2023, at approximately 3:17 p.m., wearing a blue surgical mask. There were no customers in the business at the time. Bell handed a demand note to a teller that stated: “PUT ALL BIG BILLS IN ENVELOPE (ROBBERY) Do anything stupid, and I’ll shoot you!” The teller put her hands up and told Bell she did not have money and passed the note to another teller. This second teller gave Bell cash, after which he fled. Tellers at the bank said Bell lifted his shirt and they saw something that was described as dark, silver, with a handle and that could have been a gun. In surveillance video, Bell is seen grabbing at his hip where tellers reported they saw the object. No weapon was recovered.
The Bibb County Sheriff’s Office released photographs taken from surveillance video to the public and received two tips identifying the suspect as Bell. The FBI processed the demand note for latent fingerprints and developed two latent prints that were determined to belong to Bell. The FBI also obtained location information from Bell’s cell phone and Google account which confirmed he was in the area near the bank at the time of the robbery. Bell was taken into custody on Feb. 20, 2023. Bell was previously convicted of armed robbery of the Huddle House in Jeffersonville, Georgia, in 2015. He was also convicted in federal court in the Eastern District of North Carolina of convicted felon in illegal possession of a firearm in 2021 and was on federal supervised release for that offense at the time of the Truist Bank robbery.
The case was investigated by FBI and the Bibb County Sheriff’s Office.
Assistant U.S. Attorney Elizabeth Howard is prosecuting the case for the Government.
Convicted Child Exploitation Offender from Irwin Sentenced to Prison Term Above Sentencing Guideline Range for Violating Federal Supervised ReleaseRead the Press Release
PITTSBURGH, Pa. - A resident of Irwin, Pennsylvania, was sentenced in federal court on March 11, 2024, to 15 months of incarceration for violating the conditions of his federal supervised release imposed as a result of his conviction in two prior cases where he illegally possessed child sexual abuse material, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy C. Weigand imposed the sentence on Thomas Wesley Crosby IV, 30.
According to information presented to the Court, Crosby was living in New Mexico in 2018 while serving in the United States Air Force. A federal search warrant at his residence resulted in child sexual abuse material being located on his computer, tablet, cellphone, and thumb drives. Crosby returned to Western Pennsylvania after receiving a less than honorable discharge. A search of Crosby’s cellphone recovered on October 16, 2020, in Pennsylvania revealed three times more the number of child pornography videos than were located during the New Mexico search in 2018. Based on the seizures in New Mexico and Pennsylvania, Crosby was indicted and pleaded guilty to federal charges of possessing visual depictions of minors engaging in sexually explicit conduct. He was sentenced in New Mexico to time served, followed by 15 years of supervised release.
Crosby returned to Western Pennsylvania where he was serving his term of federal supervised release. Soon thereafter, monitoring software indicated that Crosby had been using his computer to view computer-generated and anime-type images of infant females engaged in sexually explicit conduct.
During his March 11 hearing before Judge Weigand, Crosby did not contest the allegation that he had again possessed and viewed illegal sexual images of children. Judge Weigand stated that a sentence above the discretionary four-to-ten-month sentencing guidelines range was warranted in this matter. In addition to 15 months of incarceration, Judge Weigand also imposed another ten-year period of supervision and banned Crosby’s possession and use of computers, a cellphone, or the internet for a period of 60 days after his release from federal prison. Crosby was detained at the conclusion of the hearing.
Assistant United States Attorney Ross E. Lenhardt represented the United States in this supervised release revocation proceeding. United States Attorney Olshan commended the United States Probation Office for their outstanding work on this matter.
Colorado Man Sentenced for Firearms Dealing and Trafficking in the DMVRead the Press Release
WASHINGTON – Demarco Diggs, 26, of Aurora, Colorado, was sentenced today to 30 months in prison for dealing firearms without a license and trafficking firearms into the District of Columbia. Diggs used various methods to advertise his weapons for sale, most often through Instagram, and intentionally sold them to convicted felons who were prohibited from buying weapons. Law enforcement has now recovered multiple firearms that Diggs trafficked, including six within the D.C. Metropolitan Area, which include guns that have been involved in multiple shootings or discharges in the DMV area.
The sentencing was announced by U.S. Attorney Matthew M. Graves; Special Agent in Charge Craig Kailimai, of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Acting U.S. Marshal Ronald Carter of the U.S. Marshals Service (USMS), and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Diggs pleaded guilty on November 14, 2023, in U.S. District Court for the District of Columbia to one count of engaging in the business of dealing firearms without a license and one count of illegal transport of a firearm. In addition to the prison term, the Honorable Royce C. Lamberth ordered Diggs to serve three of supervised release on completion of his prison sentence. Diggs has agreed to forfeit 25 firearms, including pistols, rifles, and shotguns, as well as an assortment of ammunition. In court documents, Diggs agreed that his firearms dealing involved up to 24 firearms.
Between September 2021 and September 2023, law enforcement recovered six firearms in the D.C. Metropolitan Area which were traced back to being purchased and subsequently re-sold by Diggs. The firearms were linked to shootings or discharges and theft incidents, and one firearm was recovered from a November 2022 search warrant at the residence of Quinton McLean. McLean was indicted as a result of that search warrant and, in March 2023, pleaded guilty to unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. Judge Lamberth sentenced McLean to 34 months’ imprisonment and 36 months of supervised release.
Investigators determined that each of the recovered firearms had been purchased by Diggs in Georgia in April and June 2021, where Diggs resided at the time. In June and July 2021, Diggs traveled from Georgia to Washington, D.C., to sell firearms to prohibited persons. To date, law enforcement has identified nearly two dozen firearms that Diggs purchased from federal firearm licensees (FFLs) and at gun shows between 2020 and 2023, which were then re-sold by Diggs for profit.
Over the course of his illegal firearms trafficking, Diggs often employed Instagram to identify prospective customers to whom he would re-sell firearms that he purchased. According to court documents, Diggs used direct messages to display inventories of weapons for sale to prospective customers. In one such Instagram direct message exchange, Diggs explained to a prospective customer that he was selling his firearms “for people that [can’t] get them on [their] own.”
On March 24, 2023, law enforcement executed a search warrant at two separate residences associated with Diggs in Aurora, Colorado. From those searches, law enforcement recovered more than a half-dozen firearms, assorted ammunition and magazines, and two gun cases bearing serial numbers that matched to firearms recovered in the D.C. Metropolitan Area.
This investigation was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), in coordination with the Metropolitan Police Department and the United States Marshals Service (USMS), with assistance from the ATF Denver Regional Anti-Violence Enforcement Network (RAVEN).
It is being prosecuted by Assistant U.S. Attorney Matthew W. Kinskey of the Violence Reduction and Trafficking Offenses Section and Trial Attorney Ethan Cantor of the Department of Justice’s Criminal Division. Valuable assistance was provided by Special Assistant U.S. Attorney Adam L.D. Stempel and former Assistant U.S. Attorney Andy T. Wang.
Cincinnati man pleads guilty to fentanyl crime, money launderingRead the Press Release
CINCINNATI – A Cincinnati man pleaded guilty in U.S. District to charges related to trafficking fentanyl and laundering the proceeds.
Nathaniel Williams, 44, admitted he possessed with the intent to distribute 400 grams or more of fentanyl and committed money laundering. His plea agreement includes a recommended 10-year prison sentence.
According to court documents, in August 2023, Williams told an undercover agent that he had bulk amounts of cash from trafficking fentanyl and was looking for ways to transfer the money into the banking system.
Williams provided cash from his narcotics sales to the undercover agent, who then wired $15,120 of the funds into Williams’s bank account via a wire transfer. Williams withdrew $10,000 of the funds in cash a few days later.
On Oct. 18, 2023, agents discovered more than $44,000 in cash at Williams’s residence while executing a search warrant. Officials also recovered approximately 527 grams of fentanyl and fentanyl mixtures in a secret furniture compartment.
Williams was indicted by a federal grand jury in November 2023.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Karen Wingerd, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Cincinnati Field Office; and Cincinnati Police Chief Teresa Theetge announced the guilty plea entered on March 11 before U.S. District Judge Matthew W. McFarland. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, and gangs that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Chicago-Area Rap Artist Pleads Guilty to Role in Nationwide Fraud ConspiracyRead the Press Release
BOSTON – A Chicago-area man pleaded guilty on March 8, 2024 in federal court in Springfield, Mass. to his role in a nationwide wire fraud conspiracy that victimized businesses and individuals across the United States.
Joseph Williams, 32, of University Park, Ill., pleaded guilty to one count of conspiracy to commit wire fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 28, 2024. Williams was indicted by a federal grand jury in December 2020 along with five co-defendants, including rap promoter Antonio Strong, rap artist Herbert Wright and Demario Sorrells.
Williams was a rap artist known as “Joe Rodeo,” “Rockstar Rodie,” or “Rodeo,” based in the Chicago area. Beginning in at least March 2017 through November 2018, Williams, Sorrells, Wright and allegedly Strong and two other co-defendants, conspired to defraud numerous businesses and individuals throughout the United States by using unauthorized and stolen payment card account information of real individuals – including the actual cardholders’ names, addresses, security codes and account expiration dates. The defrauded businesses and individuals successfully processed the fraudulent transactions and provided the goods and services to Wright and his alleged co-conspirators. The actual cardholders discovered these transactions on their accounts and disputed the charges with their card companies who then charged back the transactions to the businesses and individuals, which consequently suffered losses in the amounts of the unauthorized transactions.
Williams received illicit account information allegedly from Strong on numerous occasions, and used it to make purchases knowing the account information was stolen. He also took numerous private jets, commercial flights and stayed in hotels that were paid for with the illicit account information. Although Williams did not personally conduct all of the transactions that benefitted him, he knew (or reasonably should have known) that others were purchasing his flights and hotels in a fraudulent manner. In total, Williams was responsible for $102,000 in victim losses.
On Jan. 11, 2024, Wright was sentenced to three years probation and was ordered to pay restitution and forfeiture of $139,968. In July 2023, Wright pleaded guilty to one count of conspiracy to commit wire fraud and one count of making a false statement to a federal official. On Feb. 2, 2024, Sorrells pleaded guilty to one count of conspiracy to commit wire fraud and is scheduled to be sentenced on May 28, 2024.
The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office and Trial Attorneys Andrew Tyler and Kyle Crawford of the Justice Department’s Criminal Division’s Fraud Section are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chalmette Man Sentenced for Cares Act FraudRead the Press Release
NEW ORLEANS, LOUISIANA -- U.S. Attorney Duane A. Evans announced that JULIO A. GONZALEZ, JR.( GONZALEZ), age 26, of Chalmette, La., was sentenced on March 6, 2024 by United States District Judge Lance M. Africk, to three months in jail, a $100 mandatory special assessment fee and payment of $23,433.85 in restitution after previously pleading guilty to making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), in violation of Title 18, United States Code, Section 1001.
The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) which authorized forgivable loans backed by the U.S. Small Business Administration (SBA) to small businesses to retain workers, maintain payroll and other business-related expenses. The PPP allows the interest and principal on the loan to be forgiven if the loan proceeds are spent on these expense items within a designated period of time and uses at least a certain percentage of the proceeds on payroll expenses.
Specifically, GONZALEZ pled guilty to making false statements to an approved lender to fraudulently obtain a PPP loan. As a result, he received a PPP loan totaling approximately $20,832.00. GONZALEZ stated in his application that he was an independent contractor impacted by the pandemic when, in truth, he had no such business.
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Evans praised the work of the Department of Homeland Security, Homeland Security Investigations in investigating this matter. Assistant U.S. Attorney M. Irene González of the General Crimes Unit is charge of the prosecution.
Buxton Man Sentenced for Crop Insurance Violation, Ending Series of Four Cases Involving Potato Insurance ClaimsRead the Press Release
Fargo – United States Attorney Mac Schneider announced that Chief Judge Peter D. Welte, United States District Court, District of North Dakota, sentenced Darren Wade Tronson, age 59, of Buxton, North Dakota, to one year of probation for concealing a material fact in a matter within the jurisdiction of the Government of the United States. Imposition of the sentence against Tronson resolves the final pending case related to him and his potato farming operation, which included three civil cases and one criminal case. As part of the resolution of the four cases, Tronson will forgo a $272,365 crop insurance indemnity payment for 2019, pay $10,000 restitution to the United States in connection with the settlement of his 2017 and 2018 potato claims, be barred from participation in all federal programs for ten years, and serve one year of supervised probation.
Investigation revealed that in 2017 through 2019, Tronson planted potatoes in Grand Forks and Traill Counties, North Dakota, and purchased yield-based multi-peril crop insurance policies for potatoes through his insurer. Tronson claimed significant losses in all three years due to alleged adverse weather events. In February 2019, after anomalous losses in 2017 and 2018, Tronson’s crop insurance provider met with him and stressed the need for Tronson to use agricultural experts and a soil fertility plan as part of general good farming practices to qualify for the payment for any losses under a federal crop insurance policy.
Tronson did not follow through with the recommendations and instead tried to conceal the actual cause of his potato crop loss in 2019, resulting in the criminal charge. Tronson suffered a loss for his 2019 potato crop, and Tronson made a claim under his crop insurance policy based on precipitation alone. However, Tronson willfully failed to notify his insurer that he did not follow the recommendations related to soil fertility for the 2019 crop year. Tronson’s insurer justifiably denied more than half of Tronson’s crop insurance claim in 2019 for failing to follow the recommended good farming practices.
The first civil case was also based on the 2019 crop year. In addition to criminally concealing the cause of his loss, Tronson sued the United States on behalf of his company, DL Farms, LLC, seeking to recover the 2019 indemnities that were withheld from him. In denying his claims and granting summary judgment in favor of the United States, Judge Welte wrote that RMA “analyzed the relevant factors and came to a rational decision, given DL Farms’ failure to conduct a soil test prior to the 2019 planting season and the evidence showing the fertilization practice was deficient in both in phosphorous and potassium.” Based on the Court’s decision, Tronson was required to forgo an additional $272,365 crop insurance indemnity payment for 2019.
The second civil case was based on Tronson’s failure to follow good farming practices in 2017 and 2018. In 2017 and 2018, Tronson’s insurer paid all of his potato claims, despite evidence the weather was not the actual cause of his losses. The United States alleged in a civil complaint that Tronson lied about the actual cause of his losses in those years, which was failure to use good farming practices as required by the applicable polices. After filing its Complaint, the United States reached an agreement with Tronson and his company to settle the 2017 and 2018 claims. The United States dismissed its lawsuit against Tronson in exchange for payment of $10,000 and his voluntary agreement to be excluded from all federal programs, including crop insurance and other farm programs, for ten years.
“Crop insurance fraud is a serious crime that hurts taxpayers and honest producers,” Schneider said. “This result is a reminder that fraud will be exposed, investigated, and dealt with criminally and civilly. The USDA Office of Inspector General and our office’s career prosecutors and civil litigators deserve credit for ensuring that justice was done.”
“The United States Department of Agriculture, Risk Management Agency (RMA), through its private partnerships serve a vital role in serving the needs of farmers following a disaster. Fraudulent activity and failure to follow good farming practices undermines this program and misdirects taxpayer funds from the purposes they were intended. It is the mission of the USDA-OIG to investigate allegations of waste, fraud, and abuse in USDA programs,” said Acting Special Agent in Charge Robert J. Springer of USDA-OIG.
RMA Administrator Marcia Bunger said, “We will continue to uphold the public’s trust in the crop insurance program by working closely with the Office of Inspector General, the Department of Justice and other government agencies to ensure the successful investigation and prosecution of cases involving crop insurance fraud, waste, and abuse. The court’s determination in this case should serve as a strong deterrent to others who may contemplate similar actions.”
While the criminal charges were pending, Tronson received a Notice of Suspension From Participation in United States Government Programs. The fourth case—his challenge to the suspension—was dismissed shortly after it was filed. His ten-year program suspension is effective January 1, 2023, which was the first year of his interim suspension.
This matter was investigated by the USDA Office of Inspector General and the Risk Management Agency. The criminal case was prosecuted by Assistant U.S. Attorney Matthew Greenley, District of North Dakota. Assistant U.S. Attorneys Michael D. Schoepf and Melissa Helen Burkland handled the civil cases.
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Browning man admits shooting, wounding man on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man accused of shooting and wounding a man in the head on the Blackfeet Indian Reservation admitted to charges today, U.S. Attorney Jesse Laslovich said.
Joseph Paul Vandenberg, 20, pleaded guilty to assault with a dangerous weapon and using a firearm during a crime of violence as charged in an indictment. Vandenberg faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release on the assault charge and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearm charge.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for July 11. Vandenberg was detained pending further proceedings.
The government alleged in court documents that in the early morning hours of March 11, 2022 in Browning, on the Blackfeet Indian Reservation, Vandenberg was a backseat passenger in a vehicle that was cruising around when the driver pulled up and blocked the driveway of a home as the victim, identified as John Doe, and a friend, got into a SUV that was backed into the driveway. Doe tried to maneuver around the vehicle. Vandenberg opened the back door of the vehicle, pulled out a firearm and fired a round as Doe’s vehicle was driving away. The bullet grazed the side of Doe’s head and lodged in the dashboard at the base of the windshield. Doe was treated for a large laceration on his head. Vandenberg admitted to being the shooter and told law enforcement that the driver told him to shoot, and he did because he was scared.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case. The FBI and Blackfeet Law Enforcement Services conducted the investigation.
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Bitcoin Fog Operator Convicted of Money Laundering ConspiracyRead the Press Release
A federal jury in Washington, D.C., convicted a dual Russian-Swedish national today for his operation of the longest-running bitcoin money laundering service on the darknet.
“Roman Sterlingov thought he could use the shadows of the internet to launder hundreds of millions of dollars in bitcoin without getting caught. But he was wrong,” said Deputy Attorney General Lisa Monaco. “Our team of agents, analysts, and prosecutors were relentless in their pursuit of justice, painstakingly tracing bitcoin through the blockchain to hold Sterlingov and his Bitcoin Fog enterprise to account. Today, a jury returned guilty verdicts on all counts — showing that no matter where you operate, if your cryptocurrency service reaches the United States, you must abide by U.S. law.”
“The FBI’s cyber workforce remains relentless in the pursuit of criminals who leverage technology to conduct and facilitate illegal activity,” said FBI Deputy Director Paul Abbate. “Today’s conviction is the result of close collaboration between the FBI and our federal and international partners to impose consequences on Bitcoin Fog and its operator for their money laundering activities. The FBI will continue to use all available tools and resources to impose costs on cybercriminals, no matter where they operate.”
According to court documents and evidence presented at trial, Roman Sterlingov, 35, was involved in operating Bitcoin Fog from 2011 through 2021. Bitcoin Fog was the longest-running cryptocurrency “mixer,” gaining notoriety as a go-to money laundering service for criminals seeking to hide their illicit proceeds from law enforcement. Over the course of its decade-long operation, Bitcoin Fog moved over 1.2 million bitcoin, which was valued at approximately $400 million at the time of the transactions. The bulk of this cryptocurrency came from darknet marketplaces and was tied to illegal narcotics, computer crimes, identity theft, and child sexual abuse material.
“Roman Sterlingov operated Bitcoin Fog, a cryptocurrency ‘mixing’ service that allowed criminals to launder hundreds of millions of dollars in illicit funds from darknet marketplaces. The defendant and his customers believed they could use Bitcoin Fog to conceal these illicit transactions,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “As the jury’s guilty verdict shows, that belief was mistaken. The Criminal Division is committed to unmasking and prosecuting those who use technology to hide their crimes, no matter how sophisticated the scheme may be.”
“Darknet criminals should know by now that operations like Bitcoin Fog cannot provide the anonymity for cryptocurrency transactions that they claim they can,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “This conviction demonstrates that the United States can and will combat the use of technology to carry out crimes in cyberspace.”
“Evidence presented at trial clearly showed that the defendant laundered hundreds of millions of illicit funds from the dark web through Bitcoin Fog in an attempt to conceal the origin of those funds,” said Chief Jim Lee of IRS Criminal Investigation (IRS-CI). “IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed.”
The jury convicted Sterlingov of money laundering conspiracy and sting money laundering, which each carry a maximum penalty of 20 years in prison, and of operating an unlicensed money transmitting business and money transmission without a license in the District of Columbia, which each carry 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.
The IRS-CI District of Columbia Cyber Crime Unit and FBI Washington Field Office investigated the case. The Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit provided invaluable assistance. Additional assistance was provided by Europol; the Swedish Economic Crime Authority, Swedish Prosecution Authority, and Swedish Police Authority; and the General Inspectorate of Romanian Police, Directorate for Combatting Organized Crime, and Directorate for Investigating Organized Crime and Terrorism.
Trial Attorneys Jeff Pearlman and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher B. Brown for the District of Columbia are prosecuting the case. Pelker and Brown are members of CCIPS’ National Cryptocurrency Enforcement Team (NCET). CCIPS Paralegal Specialist Divya Ramjee and Paralegal Specialist Angela De Falco for the District of Columbia provided valuable assistance.
Armed Felon Sentenced to More Than 6 Years in Prison for Possessing Multiple FirearmsRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Mark Steven White, age 44 of Kennewick Washington, was sentenced today after pleading guilty to two counts of Felon in Possession of a Firearm. United States District Judge Mary K. Dimke imposed a sentence of 78 months imprisonment to be followed by 3 years of supervised release.
According to court documents and information presented at the sentencing hearing, on May 15, 2022, Officers with the Kennewick Police Department (KPD) responded to a hit and run incident. Office observed a white Toyota 4Runner on its side, along the road. Officers learned the driver of the 4Runner had driven onto the sidewalk, hit a pile of dirt, then rolled onto its side. The 4Runner was unoccupied. After responding to the scene, a KPD officer observed a black handgun laying on the floorboard of the driver seat of the 4Runner.
Officers identified a set of shoe impressions in the dirt near the 4Runner. Witnesses reported a loud bang then saw a man, later identified as White, who was wearing a white t-shirt, shorts, and tennis shoes, climb out the window of the 4Runner. White then took off running north. KPD ultimately detained White just four blocks from the hit and run. Officers also matched the tread pattern from White’s shoes to the pattern in the footprints near the 4Runner.
White was cited and released for Hit and Run by Kennewick Police, and the 4Runner was secured at KPD. Officers then applied for and were granted a search warrant for the 4Runner. Investigators later collected a black Ruger EC9s 9MM Semi-Automatic handgun with an obliterated serial number from inside of White’s vehicle. The handgun had an extended magazine that was loaded with several cartridges. The gun was placed into evidence at the Kennewick Police Department.
By June 23, 2022, a Washington State Department of Corrections warrant had been issued for White’s arrest. U.S. Marshals located White driving a black Chevrolet Avalanche in West Richland. When White spotted the U.S. Marshals, he fled into an apartment where he was later taken into custody.
On June 28, 2022, members of the FBI’s Southeast Washington Safe Streets Task Force executed a federal search warrant for the Chevy Avalanche. Inside, investigators located a loaded Springfield .45 caliber pistol between the driver’s seat and center console. The serial numbers on the gun had been obliterated. Body armor and a ballistic helmet were also found inside the vehicle.
White was in Washington State Supervision for a violent offense at the time of the new federal crimes.
“Mr. White was a felon, who on two occasions, just a few weeks apart, fled a vehicle and refused to cooperate with law enforcement. On both occasions, Mr. White had a firearm he was not legally permitted to have. Armed felons present a real danger to our neighborhoods and communities,” stated U.S. Attorney Waldref. “I’m thankful to the dedicated efforts of KPD and FBI’s Safe Streets Task Force who focus their crime reduction strategies on holding repeat offenders accountable to make our communities safer and stronger.”
“Our community is safer with Mr. White behind bars.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “He has a long history of violence and knowingly possessed a firearm despite being prohibited from doing so. This case demonstrates how strong partnerships among all levels of law enforcement are working to protect the citizens of Washington state.”
This case was investigated by the FBI’s Southeast Washington Safe Streets Task Force which includes additional officers and detectives from the Kennewick Police Department, Pasco Police Department, Richland Police Department, Border Patrol and Department of Corrections. This case was prosecuted by Assistant United States Attorneys Stephanie Van Marter and Rebecca Perez.
- Arizona Man Pleads Guilty to Abusive Sexual Contact of Child in Indian Country
Argus Information & Advisory Services agrees to pay $37M to settle allegations that it misused data obtained under government contractsRead the Press Release
ALEXANDRIA, Va. – Argus Information & Advisory Services, Inc. (Argus) has agreed to pay the United States $37 million to resolve claims under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), involving allegations that Argus improperly accessed, used, and retained anonymized credit card data received pursuant to contracts with various federal regulators, including the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FRB), and the Consumer Financial Protection Bureau (CFPB).
Argus is incorporated in Delaware, with offices in White Plains, New York. Argus analyzes economic transactions, credit card data, and credit bureau data to provide benchmarking and market analysis products to commercial and government clients. The United States alleged the following conduct. Between March 2009 and March 2017, Argus executed contracts with the OCC, the independent bureau of the United States Treasury Department that charters and regulates national banks and federal savings associations; the FRB, the independent federal regulator for certain banks and bank holding companies; the CFPB, an independent regulator of consumer practices at certain depository institutions; and the Federal Reserve Bank of Philadelphia. Under these contracts, Argus was tasked with performing certain validating, aggregating, storage, retrieval, and reporting services for anonymized credit card data that the regulatory agencies directed the banks to provide. The contracts each placed restrictions on Argus’s ability to use, disclose or distribute credit card data collected from banks for purposes other than the performance of the work under the government contracts.
The settlement announced today resolves allegations that, from November 30, 2010, through December 31, 2020, Argus improperly accessed, used and retained anonymized credit card data that it received under the contracts. The United States alleged that Argus improperly accessed, used, and retained this anonymized credit card data to create synthetic/proxy data that it incorporated into certain products and services it sold to certain commercial customers. The United States further alleged that Argus failed to disclose its improper access, use and retention of credit card data to the United States and its reliance on synthetic/proxy data to its commercial clients.
“Those who collect sensitive information for federal regulators should never disregard their contractual obligations to appropriately use and protect that information,” said First Assistant U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We will hold companies accountable when they breach their agreements with regulators and misuse sensitive data for their own commercial gain.”
“Companies that do business with the federal government are expected to abide by the terms of their agreements, including any restrictions on the use or disclosure of government supplied data,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will not permit contractors to profit from the misuse of such data and to put the data at risk.”
“The American public expects integrity in the processes by which its government provides services and contractors who seek unfair advantage undermine this integrity,” said Acting Inspector General Rich Delmar for Treasury. “Treasury OIG is committed to conducting investigations, audits, and other work to detect and prevent these violations of the public trust.”
“Companies that breach their agreements to properly protect and use sensitive financial data must be held accountable,” said Special Agent in Charge John T. Perez of Headquarters Operations for the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. “I commend our agents and their federal law enforcement partners for their hard work, which ultimately led to today’s announcement.”
The settlement was the result of a coordinated effort by the United States Attorney’s Office for the Eastern District of Virginia; the Civil Division’s Commercial Litigation Branch, Fraud Section; the United States Department of Treasury, Office of the Inspector General; and the Office of the Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. The matter was handled by Assistant U.S. Attorney Tanya Kapoor for the Eastern District of Virginia and Senior Trial Counsels David W. Tyler and Don Williamson from the Commercial Litigation Branch, with investigative support from Senior Special Agent Jacob Heminger from the Department of the Treasury, Office of the Inspector General, and Special Agent Will Burmeister from the Office of the Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau.
The claims resolved by the settlement are allegations only, and there has been no determination of liability
Argus Information & Advisory Services Agrees to Pay $37M to Settle Allegations that it Misused Data Obtained Under Government ContractsRead the Press Release
Argus Information & Advisory Services Inc. (Argus) has agreed to pay the United States $37 million to resolve claims under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), in connection with its access to and use of credit card data obtained pursuant to contracts with various federal regulators, including the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FRB) and the Consumer Financial Protection Bureau (CFPB).
Argus is incorporated in Delaware, with offices in White Plains, New York. Argus analyzes economic transactions, credit card data and credit bureau data to provide benchmarking and market analysis products to commercial and government clients. Between March 2009 and 2020, Argus executed contracts with the OCC, the independent bureau of the Department of Treasury that charters and regulates national banks and federal savings associations; the FRB, the independent federal regulator for certain banks and bank holding companies; the CFPB, an independent regulator of consumer practices at certain depository institutions; and the Federal Reserve Bank of Philadelphia. Under these contracts, Argus was tasked with performing validating, aggregating, storage, retrieval and reporting services for anonymized credit card data that the regulatory agencies directed the banks to provide. The contracts each placed restrictions on Argus’ ability to use, disclose or distribute credit card data collected from banks for purposes other than the performance of the work under the government contracts.
The settlement announced today resolves allegations that, from 2010 through 2020, Argus improperly accessed, used and retained anonymized credit card data that it received under the contracts. The United States alleged that Argus used this anonymized data to create synthetic (proxy) data that it incorporated into the products and services it sold to some commercial customers in place of actual data from certain banks. The United States further alleged that Argus failed to disclose its improper access, use and retention of credit card data to the United States and the extent to which it relied on synthetic data to its commercial clients. The synthetic data in question did not include personally identifiable information.
“Companies that do business with the federal government are expected to abide by the terms of their agreements, including any restrictions on the use or disclosure of government supplied data,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will not permit contractors to profit from the misuse of such data and to put the data at risk.”
“Those who collect sensitive information for federal regulators should never disregard their contractual obligations to appropriately use and protect that information,” said First Assistant U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We will hold companies accountable when they breach their agreements with regulators and misuse sensitive data for their own commercial gain.”
“The American public expects integrity in the processes by which its government provides services and contractors who seek unfair advantage undermine this integrity,” said Acting Inspector General Rich Delmar of the Department of Treasury’s Office of Inspector General (OIG). “Treasury OIG is committed to conducting investigations, audits, and other work to detect and prevent these violations of the public trust.”
“Companies that breach their agreements to properly protect and use sensitive financial data must be held accountable,” said Special Agent in Charge John T. Perez of Headquarters Operations for the Office of Inspector General for the FRB and the CFPB. “I commend our agents and their federal law enforcement partners for their hard work, which ultimately led to today’s announcement.”
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Eastern District of Virginia; the Department of Treasury OIG; and the Office of the Inspector General for the FRB and the CFPB.
Senior Special Agent Jacob Heminger from the Department of the Treasury OIG and Special Agent Will Burmeister from the Office of the Inspector General for the FRB and the CFPB investigated the case.
Senior Trial Counsels David W. Tyler and Don Williamson from the Civil Division’s Commercial Litigation Branch and Assistant U.S. Attorney Tanya Kapoor for the Eastern District of Virginia handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
11 March 2024
York County Man Sentenced to 96 Months for Drug Trafficking CrimeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Terry Clark, age 59, of York County, Pennsylvania, was sentenced on March 7, 2024, to 96 months’ imprisonment by United States District Court Judge Jennifer P. Wilson, for possessing with intent to distribute cocaine.
According to United States Attorney Gerard M. Karam, in 2021, Clark was stopped by law enforcement in York, Pennsylvania, and found to be in possession of crack cocaine, two cell phones, a digital scale, and $18,200. Clark confessed that the money was from selling drugs. A month later, Clark sold crack cocaine to a confidential source, and then, two weeks later was stopped again. During the second stop, Clark was in possession of an additional quantity of crack cocaine and marijuana. Law enforcement subsequently executed a search warrant at Clark’s residence and seized more crack cocaine, as well as fentanyl, a digital scale, and stun gun. In total, Clark was determined to be responsible for 398 grams of crack cocaine, 27 grams of marijuana, and 8 grams of fentanyl.
The investigation was conducted by the Drug Enforcement Administration and the York County Drug Task Force. Assistant United States Attorneys Bruce D. Brandler, Johnny Baer, and K. Wesley (Wes) Mishoe prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Wisconsin Man Convicted in April 2018 Double Homicide and Armed Robbery of Brooksville, Florida CoupleRead the Press Release
Fort Myers, Florida –United States Attorney Roger B. Handberg announces that a federal jury has found Alex Jared Zwiefelhofer (26, Wisconsin) guilty of conspiracy to commit robbery affecting commerce and discharging a firearm during and in relation to a crime of violence, robbery interfering with commerce, discharging a firearm during and in relation to a crime of violence, which resulted in death, conspiring to kill persons in a foreign country and a violation of the Neutrality Act. Zwiefelhofer faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for June 10, 2024. Zwiefelhofer was indicted on December 4, 2019.
According to testimony presented at trial, on April 10, 2018, two individuals, S.L., Jr. and D.L., were found dead in Estero, Florida from multiple gunshot wounds to the head and body. Further investigation revealed that the couple had traveled to Estero from Brooksville, Florida to complete the purchase of several firearms from an individual who had listed them for sale on a website known as Armslist. As a result of the investigation, Zwiefelhofer was identified as one of two individuals who was believed to have murdered the couple during the course of an armed robbery of the $3,000 that the couple intended to use to purchase the firearms.
Zwiefelhofer, who had previously fought in Ukraine in 2017 after going AWOL from the U.S. Army, pursued a plan to fight the Venezuelan government and committed the robbery of S.L., Jr. and D.L. to obtain money to fund his travel to Venezuela.
This case was investigated by the Federal Bureau of Investigation and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Jesus M. Casas and Michael V. Leeman.
Winter Haven Man Pleads Guilty to Distributing P-Fluorofentanyl and MethamphetamineRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that Marcus Lutrell Walden (36, Winter Haven) has pleaded guilty to distributing methamphetamine and p-fluorofentanyl (a fentanyl analogue). Walden faces a minimum penalty of 5 years, up to 40 years, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on February 14, 2024, Walden agreed to sell what he believed was methamphetamine and fentanyl, which he described in communications as “ice cream” and “mashed potatoes” to a confidential source in Winter Haven, Florida. Walden agreed to meet the confidential source at a motel in Winter Haven to conduct the sale. An analysis of the fentanyl by the DEA Laboratory revealed that it was para-fluorofentanyl, an analogue of fentanyl. Later that day, Walden sold a Taurus .22 caliber pistol to the confidential source.
This case was investigated by the Drug Enforcement Administration and the Winter Haven Police Department. It is being prosecuted by Assistant United States Attorney David W.A. Chee.
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.
Wilkes-Barre Man Pleads Guilty to Fentanyl and Cocaine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dexter Yard, age 36, of Wilkes-Barre, Luzerne County, Pennsylvania, pleaded guilty on March 8, 2024, before U.S. District Court Judge Robert D. Mariani, to the charge of distributing fentanyl and cocaine.
According to United States Attorney Gerard M. Karam, Yard admitted that on August 17, 2021, he distributed fentanyl and cocaine to another individual in Luzerne County. The charge stems from an incident in which members of the Wilkes-Barre Police Department and the Pennsylvania State Police made a purchase of fentanyl and cocaine from Yard, and then arrested him. A search of the vehicle Yard was driving resulted in the seizure of a fully loaded .38 caliber handgun, drug paraphernalia and the money police used to purchase the drugs from Yard.
The charge against the defendant resulted from an investigation conducted by the Wilkes-Barre Police Department, the Pennsylvania State Police, and the Bureau of Alcohol, Tobacco and Firearms. 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, Yard faces a maximum sentence of twenty years, 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.
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Westbank Man Indicted for Federal Drug and Gun ViolationsRead the Press Release
NEW ORLEANS, LA- United States Attorney Duane A. Evans announced that TYRIQUE RICHARDS, age 27, of Violet, La., was indicted on March 8, 2024, for possession with intent to distribute cocaine 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).
The indictment alleges that on February 27, 2024, RICHARDS, possessed cocaine and marijuana with the intent to distribute, a handgun in furtherance of that drug trafficking offense, and a weight scale.
If convicted of possession with intent to distribute, RICHARDS faces a maximum of twenty (20) years imprisonment, a fine of up to $1,000,000.00, and at least three (3) years of supervised release. If convicted of possession a firearm in furtherance of a drug trafficking crime, he faces a minimum of five (5) years and a maximum of life imprisonment, which must be served consecutively with any other count, a fine of up to $250,000, and up to five (5) years of supervised release. RICHARDS also faces payment of a mandatory special assessment fee of $200.00.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. The case is being prosecuted by Special Assistant U.S. Attorney Nicholas Rayburn of the Violent Crime Unit.
Waterbury Gang Member Pleads Guilty to Multiple Federal OffensesRead the Press Release
JAIVAUN McKNIGHT, also known as “Sav,” 25, of Waterbury, pleaded guilty today in Bridgeport federal court to multiple offenses stemming from his participation in the 960 gang, a violent Waterbury street gang.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Maureen T. Platt, State’s Attorney for the Waterbury Judicial District; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; James Ferguson, Special Agent in Charge, ATF Boston Field Division; and Waterbury Police Chief Fernando C. Spagnolo.
According to court documents and statements made in court, in an effort to address drug trafficking and related violence in Waterbury, the FBI, ATF, and Waterbury Police have been investigating multiple Waterbury-based groups, including the 960 gang. On September 14, 2021, a federal grand jury in Hartford returned a 36-count indictment charging McKnight and 15 other alleged 960 gang members with racketeering, narcotics trafficking, firearm possession, murder, attempted murder and assault, and obstruction of justice offenses.
McKnight pleaded guilty to one count of racketeering conspiracy, one count of attempted murder and assault with a dangerous weapon in aid of racketeering, one count of carrying and using a firearm during and in relation to a crime of violence, and one count of conspiracy to distribute and to possess with intent to distribute controlled substances.
McKnight specifically admitted that he and other 960 members were engaged in violent activity, including shootings, assaults and attempted murders, and that he trafficked drugs in furtherance of the 960 enterprise. On September 21, 2018, in retaliation for the murder of an associate, McKnight and other 960 members attempted to murder individuals by shooting at an occupied residence on Scott Road in Waterbury.
McKnight has been detained since his arrest on September 16, 2021. He is scheduled to be sentenced by U.S. District Judge Kari A. Dooley on June 12, at which time he faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
This investigation is being conducted by the FBI’s Northern Connecticut Gang Task Force, ATF, and Waterbury Police Department, with the assistance of the Watertown Police Department, New Milford Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone, John T. Pierpont, Jr. and Natasha M. Freismuth, and Supervisory Assistant State’s Attorney Don E. Therkildesen, Jr. and Deputy Assistant State’s Attorney Alexandra Arroyo of the Waterbury State’s Attorney’s Office, who have been cross-designated as Special Assistant U.S. Attorneys in this matter.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is 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.
OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Violet Man Indicted for Federal Drug and Gun ViolationsRead the Press Release
NEW ORLEANS, LA - United States Attorney Duane A. Evans announced that MALI WILLIAMS, age 25, of Violet, La., was indicted on March 8, 2024 for possession with intent to distribute marijuana and tapentadol, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); 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); and being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, WILLIAMS was previously convicted of felony offenses in St. Bernard Parish. Due to his criminal history, he is prohibited from having a firearm. He is now charged with possessing a firearm on October 12, 2023. Moreover, WILLIAMS is alleged to have possessed marijuana and tapentadol with the intent to distribute, as well as firearm possession in furtherance of that drug trafficking offense.
If convicted of possession with intent to distribute, WILLIAMS faces a maximum of twenty (20) years imprisonment, a fine of up to $1,000,000.00, and at least three (3) years of supervised release. If convicted of possession of a firearm during a drug trafficking crime, he faces a minimum of five (5) years and a maximum of life imprisonment, which must be served consecutively with any other count, a fine of up to $250,000, and up to five (5) years of supervised release. If convicted of possession of a firearm by a convicted felon, he faces a maximum of fifteen (15) years imprisonment, a fine of up to $250,000, and up to three (3) years of supervised release. For each count of conviction, WILLIAMS faces a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The case is being prosecuted by Special Assistant U.S. Attorney Nicholas Rayburn of the Violent Crime Unit.
Undercover Operation Results in 25 Year Federal Prison Sentence for Convicted FelonRead the Press Release
TALLAHASSEE, FLORIDA – Hiawatha Laquinta Scott, III, of Tallahassee, Florida, was sentenced to 25 years in federal prison after previously pleading guilty to two counts of possession of a firearm by a convicted felon, two counts of distribution of 5 grams or more of methamphetamine, two counts of distribution of 50 grams or more of methamphetamine, and one count of possession with intent to distribute 50 grams or more of methamphetamine. Jason R. Coody, United States Attorney for the Northern District of Florida announced the sentence.
“Methamphetamine distribution is a scourge on large and small communities of our district,” said U.S. Attorney Coody. “With our dedicated law enforcement partners, we are committed to identifying and aggressively prosecuting those who threaten our citizens’ health and safety by distributing such addictive, controlled substances. This sentence ensures that our community will be safer and sends a message that there are real and severe consequences for federal firearm and drug offenses.”
As part of an investigation by the Bureau of Alcohol Tobacco, Firearms and Explosives, and the North Star Multi-Jurisdictional Drug Task Force, an undercover officer made a series of controlled purchases of drugs and guns from Scott in early 2023. On February 8, 2023, the undercover officer purchased a small amount of methamphetamine and fentanyl pills from Scott. Scott also loaned the undercover officer a .22 caliber pistol. Later that same day, the undercover officer purchased more methamphetamine and a 12-gauge shotgun. On February 9, 2023, the undercover officer purchased four ounces of methamphetamine. On February 16, 2023, the undercover officer purchased two ounces of methamphetamine and a sawed-off shotgun. On February 23, 2023, the undercover officer purchased 2.5 ounces of methamphetamine. On April 20, 2023, a search warrant was conducted at Scott’s house and officers recovered two ounces of methamphetamine and multiple digital scales.
“The Big Bend area is much safer with this violent offender behind bars,” said ATF Tampa Field Division’s Special Agent in Charge Kirk Howard. “The sentence reflects the severity of suspect’s crimes, as well as the determination of the North Star Task Force and U.S. Attorney’s Office.”
Scott qualified for enhanced sentencing as an Armed Career Criminal because he had three or more prior convictions for serious drug offenses and violent felonies, including a prior 20-year prison sentence for attempted first degree murder with a firearm. Scott had been released from prison in October 2021.
“A primary emphasis of the Wakulla County Sheriff’s Office is the obtainment of sustained solutions to the various problems faced by Wakulla County, FL,” said Sheriff Jared Miller. “The collaborative investigative and prosecutorial efforts of my agency’s Narcotics Unit, the NSMDTF, the ATF, and the U.S. Attorney’s Office, followed by the conviction and sentencing of Mr. Scott, provides a sustained solution to the on-going threat Mr. Scott posed to the community as he refused to live a law-abiding existence following his release from prison in 2021.”
Scott’s prison sentence will be followed by 10 years of supervised release.
This conviction was the result of a joint investigation conducted by the Bureau of Alcohol Tobacco, Firearms and Explosives, the North Star Multi-Jurisdictional Drug Task Force, and the Wakulla County Sheriff’s Office. Assistant United States Attorneys James A. McCain and Joseph A. Ravelo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
U.S. Attorney’s Office Concludes Investigation into Fatal ShootingRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against an officer from the United States Park Police for a fatal shooting that occurred on November 22, 2023, and fatally injured a 30-year-old District resident in the 1100 block of M Street, N.W., Washington, D.C.
The U.S. Attorney’s Office and the MPD Internal Affairs Division conducted a comprehensive review of the incident, which included a review of law enforcement and civilian accounts, crime-camera footage, BWC footage, physical evidence, recorded radio communications, forensic reports, the autopsy report, and reports from MPD.
According to the evidence, at about 2:30 p.m. an individual was observed in the 1100 block of 12th Street, N.W. by officers with the United States Park Police. The officers believed that the individual was engaged in drug trafficking. When the officers approached, the individual ran onto the 1100 block of M Street. One officer was able to catch up to the individual. The officer reached out to grab the individual and the two men briefly struggled. The individual retrieved a gun from his pocket and shot the officer. Simultaneously, the officer was able to draw his service weapon and fire. Both men were struck with gunfire. The individual ran several more feet and collapsed on the scene. Other officers initiated life-savings measures. However, the individual was declared dead at the scene. The officer was taken to the hospital and survived his wounds.
After a careful, thorough, and independent review of the evidence, federal prosecutors found insufficient evidence to prove beyond a reasonable doubt that the Park Police officer willfully violated the civilian’s rights.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
Traffickers Sentenced to Federal Prison for their Roles in the Distribution of Firearms, Fentanyl and Methamphetamine in ColoradoRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Xavier Drew, age 29, of Englewood, Colorado, was sentenced on March 6, 2024, to 162 months in prison, followed by five years of supervised release. Drew was also ordered to pay restitution to the Small Business Administration for a $14,862 fraudulent PPE Covid Loan he received. Co-defendant, Esvin Ivan Calles-Corrales, 28, of Phoenix, Arizona, was sentenced on March 7, 2024, to 60 months imprisonment, and a subsequent three-year term of supervised release. Additional defendants in the case have pled guilty and are awaiting sentencing.
According to court documents, Drew plead guilty to one count of conspiracy to distribute 400 grams and more of fentanyl, and 50 grams and more of methamphetamine, and to one count for trafficking firearms. The defendant also agreed to pay restitution to the Small Business Association for a fraudulent Paycheck Protection Program loan application. Calles-Corrales pled guilty to two counts, alleging the distribution of both methamphetamine and fentanyl in the District of Colorado and elsewhere.
Starting in 2022, the Bureau of Alcohol, Tobacco, and Firearms (ATF), the United States Postal Inspection Service (USPIS) and the Drug Enforcement Administration (DEA) initiated an investigation into a suspected criminal street gang involving Drew and his associates. The investigation revealed that Drew was engaged in the illegal sale firearms, including semi-automatic weapons, “ghost guns” (lacking serial numbers), firearms with obliterated serial numbers, a silencer and Glock “switches”, which are 3-D printed devices that allow a handgun to fire in a fully automatic manner. He and his associates, referred to as members of the “GUWOP gang”, were also selling fentanyl and methamphetamine.
While investigating Drew’s sources of supply, the United States Postal Inspection Service (USPIS) discovered a parcel addressed to Drew that included an children’s music box with a vacuum-sealed bag containing a large quantity of methamphetamine and a latex glove containing a large quantity of fentanyl pills. Further investigation revealed that Calles-Corrales shipped the package from Arizona to Drew’s Aurora, Colorado address. It was determined that Calles-Corrales was shipping narcotics from Arizona to Colorado and facilitating the transfer of related proceeds to Mexico.
During the investigation, agents seized large quantities of methamphetamine and thousands of fentanyl pills. They also seized and forfeited numerous firearms, Glock “switches” and over $19,000 in U.S. currency.
“The primary goal of the Office of the United States Attorney of Colorado is to keep our communities safe,” said United States Attorney Cole Finegan. “When armed drug dealers are taken off the streets, we move one step closer to a safer Colorado. I continue to commend our law enforcement partners for their critical, dedicated work toward helping achieve this goal.”
“Xavier Drew was a key figure in a vast criminal network which engaged in firearms and narcotics trafficking, extending far beyond our Colorado communities, said ATF Special Agent in Charge Brent Beavers. Thanks to the hard work of our ATF special agents and our partners at the USPIS and DEA, their criminal enterprise has been dismantled as they now face justice within the confines of federal prison."
“This investigation affirms the correlation between drug trafficking and firearms. The results of this investigation affirm that DEA and our partners will continue to pursue those individuals and their networks which are causing our communities harm,” said Drug Enforcement Administration Rocky Mountain Field Division Acting Special Agent in Charge David Olesky.”
United States District Court Judge Raymond P. Moore presided over the sentencings on March 6 and 7, 2024. The ATF, USPIS, and the DEA investigated this case. Assistant United States Attorney Brad Giles handled the prosecution.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information on the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Teen Admits Role in 2 New Haven Gang Shootings, Pleads Guilty to Racketeering ChargeRead the Press Release
NYZAIRE BARNES, also known as “Melo,” 19, of New Haven, pleaded guilty today before U.S. District Judge Victor A. Bolden in New Haven to a racketeering offense stemming from his role in a violent New Haven street gang.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; John P. Doyle, Jr., State’s Attorney for the New Haven Judicial District; James Ferguson, Special Agent in Charge, ATF Boston Field Division; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England; and New Haven Police Chief Karl Jacobson.
According to court documents and statements made in court, in an effort to address violence in New Haven, the ATF, FBI, DEA and New Haven Police Department, working closely with the U.S. Attorney’s Office and New Haven State’s Attorney’s Office, have been investigating an ongoing gang war between members and associates of the Exit 8 street gang and rival gangs in the Hill section and other areas of the city. The Exit 8 gang is named after the geographic area accessed by exiting Interstate 91 at Exit 8 in New Haven. Recently, younger members of Exit 8 are identifying themselves with the word “Honcho,” which is derived from the street name of an Exit 8 member who was murdered on Quinnipiac Avenue in February 2020.
The investigation revealed that Barnes and other members of the Exit 8 gang engaged in drug trafficking, used and shared firearms, and, since June 2018, have committed at least three murders and 16 attempted murders. Exit 8 members and associates also stole vehicles, at times from outside of the state, and used those stolen vehicles when committing acts of violence. Gang members also promoted, coordinated, facilitated, and celebrated their narcotics distribution and acts of violence through text messaging and the use of social media applications and websites including Facebook, Instagram, Snapchat, and YouTube.
Barnes pleaded guilty to conspiracy to engage in a pattern of racketeering activity, and specifically admitted that he took part in two gang-related shootings. On April 12, 2022, Barnes and other Exit 8 members shot and attempted to kill rival gang members. On January 20, 2023, Exit 8 members, including Devin Suggs, stole an SUV in Scarsdale, New York. Later that day, Barnes and Suggs committed a drive-by shooting of a rival gang member in New Haven. The victim was shot in the head, but survived the attack.
At sentencing, which is not scheduled, Barnes faces a maximum term of imprisonment of 20 years. Barnes has been detained since August 3, 2023.
Suggs pleaded guilty to the same charge on February 20, 2024, and awaits sentencing.
This investigation is being conducted by ATF, the FBI, the DEA, the New Haven Police Department, the Hamden Police Department, and the New Haven State’s Attorney’s Office, with the assistance of the Connecticut State Police and the Connecticut Forensic Science Laboratory. The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens, Rahul Kale and Jocelyn C. Kaoutzanis.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Tampa Man Sentenced to More Than 12 Years for Fentanyl ConspiracyRead the Press Release
Tampa, FL – U.S. District Judge Charlene Edwards Honeywell has sentenced Efrain Rivera Matos (45, Tampa) to 12 years and 7 months in federal prison for conspiracy to distribute fentanyl charges. Rivera Matos pleaded guilty on December 8, 2023.
According to court documents, on July 27, 2022, Rivera Matos conspired to ship approximately 560 grams of pressed fentanyl pills to Tampa. On August 31, 2022, Rivera Matos conspired with others to distribute a parcel containing two kilograms of fentanyl powder that was concealed within an air fryer. Co-conspirators distributed fentanyl from a gas station car wash in Tampa, Florida.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Samantha Beckman.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Suburban Chicago Businessman Sentenced to Two Years in Prison for Evading $3.7 Million in Income TaxesRead the Press Release
CHICAGO — A suburban Chicago businessman has been sentenced to two years in federal prison for willfully evading more than $3.7 million in federal and state income taxes.
ABRAHAM KISWANI 54, of Burbank, Ill., pleaded guilty last year to a federal tax evasion charge. In addition to the prison term, U.S. District Judge Manish S. Shah on Thursday fined Kiswani $10,000.
Kiswani served as the president of World Security Bureau, a Chicago-area security firm that did business as World Security Agency. From 2010 through 2013, Kiswani concealed his wages, compensation, and income from being reported to the IRS. Kiswani directed the individual in charge of payroll to stop issuing payroll checks to Kiswani and to instead pay him in the form of checks falsely categorized as “subcontracted services.” Kiswani also caused the business to pay a wide range of personal expenses which Kiswani caused to be falsely identified as business expenses.
Kiswani failed to report approximately $10 million in income that he received, resulting in a tax loss to the U.S. and State of Illinois totaling approximately $3,708,065.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Substantial assistance was provided by the U.S. Department of Housing and Urban Development, and the Chicago Housing Authority’s Office of the Inspector General. The government was represented by Assistant U.S. Attorney Patrick J. King, Jr.
Stratford Man Sentenced to 7 Years in Federal Prison for Distributing Meth and OxycodoneRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that EDWARD JOHNSON, 32, of Stratford, was sentenced today by U.S. District Judge Sarala V. Nagala in Harford to 84 months of imprisonment, followed by four years of supervised release, for distributing methamphetamine and oxycodone.
According to court documents and statements made in court, in April 2022, the Stratford Police Department’s Narcotics, Vice and Intelligence Unit and the Drug Enforcement Administration began investigating Johnson and others for distributing controlled substances in the Stratford and Bridgeport area. Johnson was arrested on August 2, 2022. On that date, investigators conducted a court authorized search of his residence on Thompson Street in Stratford and seized approximately 967 grams of methamphetamine in both pill form and powder form, approximately 13 grams of oxycodone pills; other prescription pills, more than six pounds of marijuana, and $32,151 in cash.
At the time of his arrest, Johnson was on state probation from a prior drug offense, and on pre-trial release for state narcotics and firearm charges.
Johnson has been detained since his arrest. On December 14, 2023, he pleaded guilty to possession with intent to distribute methamphetamine and oxycodone.
This matter was investigated by the Stratford Police Department’s Narcotics, Vice and Intelligence Unit and the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force. The HIDTA Task Force includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Norwalk, Stamford, Stratford, Milford, and Danbury Police Departments. The case was prosecuted by Assistant U.S. Attorney Stephanie T. Levick.
Stilwell Resident Sentenced for Assaults Resulting in Serious Bodily InjuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeremy David Croley, age 47, of Stilwell, Oklahoma, was sentenced to 12 months and one day in prison, followed by one year of home confinement for each of two counts of assault resulting in serious bodily injury in Indian country. The sentence for each count will run concurrently. Croley was also ordered to pay a $15,000 fine.
The charges arose from an investigation by the Oklahoma Highway Patrol.
On July 18, 2022, Croley entered a guilty plea to the charges. According to investigators, on September 15, 2018, Croley crossed the center line driving southbound on Bell Road and crashed his dual rear wheel truck into a vehicle driving in the northbound lane. Troopers arriving at the scene of the wreckage observed Croley unsteady on his feet, slurring his speech, and smelling strongly of alcohol. Croley failed a preliminary breath test and returned just under 0.20 on a subsequent blood alcohol test, well over the .08 limit. Data retrieved from Croley’s vehicle showed he had failed to brake in the eight seconds prior to impact. Two passengers in the oncoming vehicle suffered severe bodily injuries from the impact.
The crimes occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, within the Eastern District of Oklahoma.
The Honorable Charles B. Goodwin, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting by assignment, presided over the hearing in Oklahoma City. Croley will self-report to the U.S. Marshal service on March 11, 2024, prior to serving a non-paroleable sentence of incarceration at a designated United States Bureau of Prisons facility.
Assistant United States Attorney Kevin Gross represented the United States at sentencing.
Six Former Kentucky State Corrections Officers Sentenced for Violating the Civil Rights of an Inmate and Obstruction of JusticeRead the Press Release
LEXINGTON, Ky. – Six former officers of the Eastern Kentucky Correctional Complex (EKCC) were sentenced on Monday for their roles in the assault of an inmate and the subsequent cover-up.
Three officers who carried out the assault on the inmate and covered it up — Randall Dennis, 28, James Benish, 37, and Jeffery Havens, 28 — were sentenced to 60, 27 and 15 months in prison, respectively, followed by two years of supervised release each. A supervisor and two other officers who covered up the assault — Randy Nickell, 55, Nathan Cantrell, 33, and Derek Mays, 34 — were each sentenced to one month in prison, followed by two years of supervised release, with Nickell and Cantrell sentenced to five additional months of home confinement. All six officers pleaded guilty, and three of the officers testified against a seventh co-defendant, Eric Nantell, who was found guilty at a trial earlier this year.
“These former corrections officers are being sentenced to prison for their roles in the violent assault of a handcuffed inmate in a prison shower cell, and their attempt to cover-up the crime,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “These sentences should send a clear message: corrections officers are not above the law in our country. The Justice Department will continue to enforce federal laws to protect the civil and constitutional rights of people held in our jails and prisons.”
“These individuals were responsible for the custody and care of inmates; instead, they chose to assault them, and lie to cover up the abuse,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “Their conduct was a profound breach of the trust placed in them, a brazen disregard for safety of people in their care and a disgraceful effort to conceal their crime. Fortunately, they now face the consequences of this inexcusable conduct.”
“When several officers took part in beating an inmate who was unable to defend himself, a blatant violation of the individual’s civil rights occurred. But the injustice did not stop there as evidence of a cover-up also emerged,” said Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office. “As in this case, FBI personnel will always take allegations of police misconduct seriously and will leave no stone unturned when it comes to identifying perpetrators who violate federal law.”
The evidence at trial established that Dennis and Benish, both of whom were members of EKCC’s internal affairs department, assaulted a non-violent inmate who was lying face-down, wearing handcuffs and leg shackles and isolated in a prison shower cell. Havens, an entry-level officer, joined them in the assault.
Within hours of the inmate reporting the abuse, supervisors of EKCC and state detectives of the Kentucky State Police opened an investigation. Nickell, Cantrell and Mays, who were standing in the hallway outside the door of the shower when the assault began, joined the other officers in a cover-up scheme. As part of that cover-up, they wrote false reports and lied to state investigators.
The one defendant who did not plead guilty was recently convicted at trial in a related case. On Feb. 15, former Corrections Sergeant Nantell was convicted of one count of deprivation of civil rights for failing to intervene to protect the inmate and three counts of obstruction for lying to state and federal investigators. Nantell’s sentencing hearing is scheduled for June 10. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Louisville Field Office investigated the case.
Trial Attorney Thomas Johnson of the Justice Department’s Civil Rights Division and Assistant U.S. Attorneys Zachary Dembo and Mary Melton for the Eastern District of Kentucky prosecuted the case.
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Six Former Kentucky State Corrections Officers Sentenced for Violating the Civil Rights of an Inmate and Obstruction of JusticeRead the Press Release
Six former officers of the Eastern Kentucky Correctional Complex (EKCC) were sentenced today for their roles in the assault of an inmate and the subsequent cover-up.
Three officers who carried out the assault on the inmate and covered it up — Randall Dennis, 28, James Benish, 37, and Jeffery Havens, 28 — were sentenced to 60, 27 and 15 months in prison, respectively, followed by two years of supervised release each. A supervisor and two other officers who covered up the assault — Randy Nickell, 55, Nathan Cantrell, 33, and Derek Mays, 34 — were each sentenced to one month in prison, followed by two years of supervised release, with Nickell and Cantrell sentenced to five additional months of home confinement. All six officers pleaded guilty, and three of the officers testified against a seventh co-defendant, Eric Nantell, who was found guilty at a trial earlier this year.
“These former corrections officers are being sentenced to prison for their roles in the violent assault of a handcuffed inmate in a prison shower cell, and their attempt to cover-up the crime,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “These sentences should send a clear message: corrections officers are not above the law in our country. The Justice Department will continue to enforce federal laws to protect the civil and constitutional rights of people held in our jails and prisons.”
“These individuals were responsible for the custody and care of inmates; instead, they chose to assault them, and lie to cover up the abuse,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “Their conduct was a profound breach of the trust placed in them, a brazen disregard for safety of people in their care and a disgraceful effort to conceal their crime. Fortunately, they now face the consequences of this inexcusable conduct.”
“When several officers took part in beating an inmate who was unable to defend himself, a blatant violation of the individual’s civil rights occurred. But the injustice did not stop there as evidence of a cover-up also emerged,” said Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office. “As in this case, FBI personnel will always take allegations of police misconduct seriously and will leave no stone unturned when it comes to identifying perpetrators who violate federal law.”
The evidence at trial established that Dennis and Benish, both of whom were members of EKCC’s internal affairs department, assaulted a non-violent inmate who was lying face-down, wearing handcuffs and leg shackles and isolated in a prison shower cell. Havens, an entry-level officer, joined them in the assault.
Within hours of the inmate reporting the abuse, supervisors of EKCC and state detectives of the Kentucky State Police opened an investigation. Nickell, Cantrell and Mays, who were standing in the hallway outside the door of the shower when the assault began, joined the other officers in a cover-up scheme. As part of that cover-up, they wrote false reports and lied to state investigators.
The one defendant who did not plead guilty was recently convicted at trial in a related case. On Feb. 15, former Corrections Sergeant Nantell was convicted of one count of deprivation of civil rights for failing to intervene to protect the inmate and three counts of obstruction for lying to state and federal investigators. Nantell’s sentencing hearing is scheduled for June 10. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Louisville Field Office investigated the case.
Trial Attorney Thomas Johnson of the Justice Department’s Civil Rights Division and Assistant U.S. Attorneys Zachary Dembo and Mary Melton for the Eastern District of Kentucky prosecuted the case.
Six Defendants Indicted in Multi-State Identity Theft RingRead the Press Release
TUCSON, Ariz. – On February 28, 2024, a federal grand jury returned a five-count indictment against Armani R. Purandah, 24, Rashawn L. Gray, 27, Tyshaun D. Ripley, 25, Awilda Reyes, 51, Richard M. Bah, 20, of Bronx, NY, and Harley D. Stuscavage, 41, of Phoenix. The defendants were each charged with one count of Conspiracy to Commit Bank Fraud and four counts of Aggravated Identity Theft.
The indictment alleges that the co-conspirators engaged in a scheme to defraud individuals and banks across the United States including in Arizona, Colorado, and California. The co-conspirators unlawfully used victims’ personal identifying information and fraudulent identifications to open fake business accounts linked to the victims’ legitimate bank accounts. They transferred the victims’ funds from the victims’ legitimate bank accounts to the fraudulent business bank accounts. Once the victims’ funds were transferred to the business accounts, the co-conspirators withdrew the funds in cash at financial institutions and tribal casinos. The co-conspirators also made other unauthorized transactions from the accounts.
Conspiracy to Commit Bank Fraud carries a maximum penalty of 30 years in prison and a fine of up to $1,000,000. Aggravated Identity Theft carries a two-year mandatory minimum prison sentence.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation conducted the investigation in this case. The U.S. Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-24-00927-JCH-MSA
RELEASE NUMBER: 2024-027_Purandah, et al.# # #
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.Shreveport Man Convicted in Recent Trial Pleads Guilty to Additional Charge of Theft of Government FundsRead the Press Release
SHREVEPORT, La. – Edward L. Angel, Sr., 70, of Shreveport, appeared before United States District Magistrate Judge Mark L. Hornsby today to enter a guilty plea, announced United States Attorney Brandon B. Brown. Angel pleaded guilty to a charge of theft of government funds. In addition to pleading guilty, Angel agreed to pay restitution in the total amount of $141,972.89.
In February, Angel was found guilty by a federal jury of three counts of making false statements to the Federal Aviation Administration (FAA) after a week-long trial. The jury was deadlocked as to the remaining counts in the indictment charging Angel with theft of government funds and a mistrial was declared. A decision was made by the U.S. Attorney’s Office to proceed to a second trial against Angel on the remaining counts. The guilty plea today resolves those remaining counts, negating a second trial.
Angel is a veteran and owned and operated two businesses, ELA Group, Inc. (ELA) and Paradigm Engineers and Constructors PLLC (Paradigm). The VA has a service-disabled veteran owned small business program (SDVOSB) which is a program that provides federal contracting assistance to small businesses owned by disabled veterans by providing them the opportunity to get certain set-aside contracts. To be eligible for this program, the veteran must meet specific criteria demonstrating eligibility, ownership, and control of the small business.
In 2011 and 2012, Angel submitted forms to the SDVOSB stating that he was the President of ELA and responsible for all day-to-day responsibilities and decisions. He also submitted documentation stating he worked 40+ hours each week and his compensation was taken at the end of the year in the form of IRS Subchapter S regulations distributions. On the forms Angel submitted, he represented to SDVOSB that the reason he did not take a salary was because he chose to leave money in the corporation to keep as much working capital as possible. In 2016, Angel purchased and became the President of Paradigm. Soon after his purchase of Paradigm, he began to submit documentation to qualify the company for the SDVOSB program. He certified that he was the 100% owner of Paradigm and worked an average of 50 or more hours a week committing 5-6 hours a day to each of his entities. As a result of these representations, ELA and Paradigm were accepted into the SDVOSB program and received millions of dollars in set-aside contracts from the SDVOSB.
From on or about November 2013, Angel also received Individual Unemployability from the Veterans Benefits Administration (VBA). Angel submitted documents to substantiate his disability claims for the VBA stating he was unable to work and had been unemployed since 2008. As a result of his misrepresentations to VBA, Angel admitted that he received $93,819.29 in IU payments that he was not entitled to receive and that were deposited into his bank account in the form of monthly payments.
On June 16, 2011, Angel also applied for SSA Disability Insurance Benefits stating that he had been unable to work since 2010 due to a medical condition. The SSA approved his application to receive disability benefits. Angel admits that he failed to disclose that he owned and operated two companies and was gainfully employed. As a result of these misrepresentations, he received $48,153.60 in disability payments he was not entitled to receive.
Angel faces a sentence of up to 5 years in prison, 3 years of supervised release, and a fine of up to $250,000 on the false statement counts. He also faces up to 1 year in prison, not more than 1 year of supervised release, and a fine of up to $100,000 on the theft of government funds charge.
Angel will be sentenced for the three counts of making false statements to the FAA and the count of theft of government funds on April 26, 2024.
The case was investigated by the U.S. Department of Transportation Office of Inspector General, Department of Veteran Affairs Office of Inspector General, and Social Security Administration Office of Inspector General, and was prosecuted by Assistant United States Attorneys Tennille M. Gilreath and Earl M. Campbell.
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