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Tuesday 30 January 2024
Federal Subcontractor Agrees to Pay $5 Million to Settle False Claims Act AllegationsRead the Press Release
DETROIT - Merrill Technologies Group, Inc., and its subsidiaries, Merrill Tool and Machine, Inc. (MTM), Merrill Fabricators, Inc., Merrill Engineering & Integration, Inc., Merrill Aviation and Defense, Inc. (collectively, Merrill Technologies Group) have agreed to pay $5,000,000 to resolve allegations that MTM violated the False Claims Act by falsely overstating cost or pricing data included in a subcontract proposal for work under a contract with the U.S. Department of the Army.
In 2006, a government prime contractor and the U.S. Army’s Tank Automotive Command (TACOM) entered into a sole-source agreement under which the prime contractor agreed to manufacture and assemble components of upgrades to various armored vehicles. Thereafter, in 2010, the prime contractor entered into a subcontract with MTM to perform some of the work under its contract with TACOM. During that process, MTM submitted a subcontract proposal to the prime contractor, which the prime contractor ultimately relied on to negotiate a firm-fixed price contract with TACOM. The settlement announced today resolves the government’s allegations that MTM’s subcontract proposal overstated MTM’s cost or pricing data, thereby causing the prime contractor to negotiate and certify the prime contract with TACOM based on inflated costs, which in turn caused TACOM to pay overcharges at the prime and subcontractor levels.
“Government contractors must be completely above board when seeking payment under government contracts,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “This settlement demonstrates our commitment to hold accountable contractors who cause the Government to overpay, and who enrich themselves at taxpayer expense.” U.S. Attorney Ison added, “I would like to commend the leadership at Merrill Technologies Group for making things right once the government’s concerns were brought to its attention by federal investigators.”
“This settlement is the result of Army CID’s commitment to protect the government, the Army, and most importantly, the taxpayer, from those whose actions can erode the trust and confidence in our military and warfighting capability. Army CID and our law enforcement partners remain committed to hold accountable those who attempt to defraud the government,” said Keith K. Kelly, Special Agent-in-Charge Army Criminal Investigation Division, Fraud Field Office.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Chad Sibley (Relator). Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. In this case, Relator will receive $900,000.00 as part of the settlement. The qui tam case is captioned United States ex rel. Sibley v. Merrill Tool and Machine, et al., Case No 15-13066 (E.D. Mich.).
The resolution was the result of a coordinated effort by the United States Attorney’s Office for the Eastern District of Michigan, the U.S. Army Criminal Investigation Division, and the Defense Contract Audit Agency. The matter was handled by Assistant United States Attorney Carolyn Bell Harbin from the U.S. Attorney’s Office for the Eastern District of Michigan. The claims resolved by the settlement are allegations only; there has been no determination of liability.
Federal Indictments Allege International Organized Crime Syndicate Imported and Exported Narcotics Across North AmericaRead the Press Release
Ten people were arrested in multiple cities over the past day in relation to two federal indictments charging members of an organized crime syndicate who allegedly conspired to traffic and import hundreds of kilograms of cocaine and other controlled substances from Mexico through Los Angeles for export to Canada or re-distribution throughout the United States.
Arrest and search warrants were executed this morning by a coalition of international law enforcement partners in various cities, including Los Angeles; Sacramento, California; Miami; Odessa, Texas; Montreal; Toronto; and Calgary, Canada.
In addition to those arrested, two defendants were already in state custody, and seven defendants are fugitives, including three Mexicans who allegedly supplied wholesale quantities of narcotics to the traffickers in the United States and Canada.
The investigation, known as “Operation Dead Hand,” resulted in two federal grand jury indictments returned under seal in Los Angeles earlier this month. The indictments, which were unsealed today, collectively charge 19 individuals for their alleged roles in the organized crime syndicate, including Mexico-based suppliers who brought large quantities of narcotics into the United States, United States distributors, a Canadian who led an exportation organization, Canadian-based semi-truck drivers who operate in the United States, and a large-scale Canadian trafficker and Italian organized crime figure, Robert Scoppa, whom investigators allege was purchasing massive quantities of drugs on a wholesale basis.
“Today’s charges and arrests across North America reflect the Justice Department’s close coordination with our Mexican and Canadian partners to disrupt international narcotics trafficking,” said Deputy Attorney General Lisa O. Monaco. “These cases provide yet another example of how our agents and prosecutors work side-by-side to uncover and dismantle organized criminal networks peddling and profiting from deadly drugs.”
“Drug trafficking is a global problem being driven by sophisticated, organized crime groups who put profits over people’s lives,” said U.S. Attorney Martin Estrada for the Central District of California. “Motivated by greed, these criminals destroy lives, devastate families, and wreak havoc in our community. But this case shows that we will collaborate with our international partners to bring these criminal networks to justice. Those who traffic in highly addictive and dangerous drugs will be held accountable.”
“Until today, the organized members of this conspiracy operated with impunity throughout the many thousands of miles that comprise the North American continent, poisoning communities along the way,” said Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office. “The strength of this partnership cannot be overstated. The agents and detectives on this case did an outstanding job of pooling resources and worked seamlessly across borders toward a mutual goal of putting this massive drug pipeline out of business.”
Investigators developed information indicating the organized crime group used Canadian “handlers” and “dispatchers” who travelled from Canada to Los Angeles for short amounts of time. The handlers coordinated the pick-up and delivery of large shipments of cocaine and methamphetamine, which were loaded onto long-haul semi-trucks destined for Canada. Wholesale quantities of fentanyl were seized as a result of the investigation. The transportation was coordinated by a network of drivers working with dozens of trucking companies who made numerous border crossings from the United States to Canada via the Detroit Windsor Tunnel, the Buffalo Peace Bridge, and the Blue Water Bridge.
The indictments allege illicit drug trafficking activity cumulatively involving approximately 845 kilograms (1,860 pounds) of methamphetamine, 951 kilograms (2,092 pounds) of cocaine, 20 kilograms (44 pounds) of fentanyl, and 4 kilograms (nearly 9 pounds) of heroin. Over $900,000 in cash was seized during the investigation. The estimated wholesale value of the narcotics seized was between $16-28 million.
“Customs and Border Protection’s partnerships with international, federal, state, and local law enforcement agencies are a key component of our efforts to combat the transnational organized crime threat and prevent the movement of dangerous illicit drugs,” said Director of Field Operations Cheryl M. Davies of U.S. Customs and Border Protection (CBP)’s Los Angeles Field Office. “CBP will continue to invest in these partnerships as we work together to keep dangerous drugs out of our communities.”
U.S. v. Sandoval:
An 18-count indictment returned on Jan. 4 charges 10 defendants for their roles in an organization which allegedly began operating on an unknown date and continued to on or about March 2023. The charges in the indictment allege two drug trafficking conspiracies; conspiracy to import cocaine; drug exportation conspiracy; distribution/possession with intent to distribute controlled substances; possession of a firearm in furtherance of drug trafficking; and being a felon in possession of ammunition.
The defendants charged in this indictment are:
- Jesus Ruiz Sandoval Jr., 45, of Guadalajara, Mexico;
- John Joe Soto, 42, of Guadalajara;
- Eduardo Carvajal, 50, of Guadalajara;
- Roberto Scoppa, 55, of Montreal;
- Ayush Sharma, 25, of Brampton, Canada;
- Subham Kumar, 29, of Calgary, Canada;
- Carlos Barragan, 51, of Long Beach, California;
- Corell Carbajal Garcia, 38, of Hemet, California;
- Humberto Luis Bermejo, 26, of Odessa, Texas; and
- Esteban Sinhue Mercado, 24, of San Jacinto, California.
Sandoval Jr., who is currently a fugitive, is believed to be a large-scale drug trafficker involved in importing drugs from Mexico into the United States for distribution. John Joe Soto is believed to work under Sandoval. Eduardo Carvajal, also an alleged large-scale drug-trafficker, is believed to export drugs from the United States to Canada. Robert Scoppa is an alleged Canadian drug trafficker with close ties to an Italian organized crime family in Montreal. Barragan is an alleged drug trafficker who lives in the United States. Sharma and Kumar are semi-truck drivers involved in exporting drugs to Canada.
U.S. v. Sidhu:
A 23-count indictment returned on Jan. 3 charges nine defendants for their roles in a related criminal enterprise which allegedly operated from at least September 2020 through February 2023. In addition to a drug trafficking conspiracy, the indictment alleges a drug exportation conspiracy and substantive counts of distribution/possession with intent to distribute controlled substances.
The defendants charged in this indictment are:
- Guramrit Sidhu, 60, of Brampton, Canada;
- Ivan Gravel Gonzalez, 32, a resident of both the Dominican Republic and Montreal;
- Daniel Antonio Trejo Huerta, 43, of Riverside, California;
- Ignacio Lopez, 53, a resident of Santa Ana, California;
- Daniel Joseph Alan Herrera, 27, of Miami;
- Orlando Velasco Jr., 29, of Stanton, California;
- Angel Larry Sandoval, 32, of Bell Gardens, California;
- Jorge Pina Nicols, 22, of Long Beach, California; and
- Bryan Ureta Valenzuela, 24, of Ontario, California.
Sidhu, also known as King, is alleged to have orchestrated the trafficking and exportation of large-scale quantities of controlled substances to Canada working with several co-defendants described as suppliers. Ivan Gravel Gonzalez is alleged to be part of Sidhu’s exportation team based in the United States. Sidhu is charged with one count of engaging in a continuing criminal enterprise. According to the indictment, Sidhu occupied a position of organizer, supervisor, and manager, and in this role obtained substantial income and resources.
If convicted, each defendant faces maximum penalties ranging from 40 years to life in prison. If convicted, Sidhu would face a mandatory minimum penalty of 20 years in prison. If convicted, Sandoval and Carvajal each would face a mandatory minimum penalty of 15 years in prison.
The FBI, the Los Angeles Police Department and the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (LA IMPACT), the Royal Canadian Mounted Police, CBP, and law enforcement authorities in Mexico investigated the case. Significant assistance was provided by Homeland Security Investigations and the Drug Enforcement Administration. The Justice Department’s Office of International Affairs, the FBI’s Legal Attaché Offices in Mexico City, Ottawa, and New Delhi, and the FBI Miami, El Paso, and Buffalo Field Offices provided substantial assistance and support.
Operation Dead Hand 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.
Assistant U.S. Attorney Brittney M. Harris for the Central District of California’s International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Indictments Allege International Organized Crime Syndicate Imported and Exported Narcotics Across North AmericaRead the Press Release
LOS ANGELES – Ten people were arrested in multiple cities over the past day in relation to two federal indictments charging members of an organized crime syndicate who allegedly conspired to traffic and import hundreds of kilograms of cocaine and other controlled substances from Mexico through Los Angeles for export to Canada or re-distribution throughout the United States.
Arrest and search warrants were executed this morning by a coalition of international law enforcement partners in various cities, including Los Angeles; Sacramento, California; Miami; Odessa, Texas; and the Canadian cities of Montreal, Toronto and Calgary.
In addition to those arrested, two defendants were already in state custody, and seven defendants are fugitives, including three Mexicans who allegedly supplied wholesale quantities of narcotics to the traffickers in the United States and Canada.
The investigation, known as “Operation Dead Hand,” resulted in two federal grand jury indictments returned under seal in Los Angeles earlier this month. The indictments, which were unsealed today, collectively charge 19 individuals for their alleged roles in the organized crime syndicate, including Mexico-based suppliers who brought large quantities of narcotics into the United States, United States distributors, a Canadian who led an exportation organization, Canadian-based semi-truck drivers who operate in the United States, and a large-scale Canadian trafficker and Italian organized crime figure, Robert Scoppa, whom investigators allege was purchasing massive quantities of drugs on a wholesale basis.
“Today’s charges and arrests across North America reflect the Justice Department’s close coordination with our Mexican and Canadian partners to disrupt international narcotics trafficking,” said Deputy Attorney General Lisa O. Monaco. “These cases provide yet another example of how our agents and prosecutors work side-by-side to uncover and dismantle organized criminal networks peddling and profiting from deadly drugs.”
“Drug trafficking is a global problem being driven by sophisticated, organized crime groups who put profits over people’s lives,” said United States Attorney Martin Estrada. “Motivated by greed, these criminals destroy lives, devastate families, and wreak havoc in our community. But this case shows that we will collaborate with our international partners to bring these criminal networks to justice. Those who traffic in highly addictive and dangerous drugs will be held accountable.”
“Until today, the organized members of this conspiracy operated with impunity throughout the many thousands of miles that comprise the North American continent, poisoning communities along the way,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The strength of this partnership cannot be overstated. The agents and detectives on this case did an outstanding job of pooling resources and worked seamlessly across borders toward a mutual goal of putting this massive drug pipeline out of business.”
Investigators developed information indicating the organized crime group used Canadian “handlers” and “dispatchers” who travelled from Canada to Los Angeles for short amounts of time. The handlers coordinated the pick-up and delivery of large shipments of cocaine and methamphetamine, which were loaded onto long-haul semi-trucks destined for Canada. Wholesale quantities of fentanyl were seized as a result of the investigation. The transportation was coordinated by a network of drivers working with dozens of trucking companies who made numerous border crossings from the United States to Canada via the Detroit Windsor Tunnel, the Buffalo Peace Bridge, and the Blue Water Bridge.
The indictments allege illicit drug trafficking activity cumulatively involving approximately 845 kilograms (1860 pounds) of methamphetamine, 951 kilograms (2,092 pounds) of cocaine, 20 kilograms (44 pounds) of fentanyl and 4 kilograms (nearly 9 pounds) of heroin. Over $900,000 in cash was seized during the investigation. The estimated wholesale value of the narcotics seized was between $16-28 million.
“Today, organized crime knows no boundaries,” said Michel Moore, the Chief of Police of the Los Angeles Police Department. “It is through the international cooperation between LAPD, the FBI, the United States Attorney’s Office for the Central District, the Royal Canadian Mounted Police and others that we were able to apprehend and charge multiple individuals who have imported significant amounts of drugs into this country. I am proud of our continued work with our federal and international partners to bring safety to our respective communities, and reduce the lives lost by these illicit drugs.”
“Organized crime groups continue to bring increasingly toxic drugs into our communities, a trend that has had a devastating impact on many Canadians, and most regrettably, our children and youth,” said Royal Canadian Mountain Police Chief Superintendent, Mathieu Bertrand. “As Canada's national police force, the RCMP is dedicated to disrupting the flow of illegal drugs into our country, looking beyond our borders to where these threats originate and stopping them at the source. Operation Dead Hand demonstrates the close work we do with our international partners to combat transnational organized crime, helping keep our communities safe on both sides of the border.”
“Customs and Border Protection’s partnerships with international, federal, state and local law enforcement agencies are a key component of our efforts to combat the transnational organized crime threat and prevent the movement of dangerous illicit drugs,” said Cheryl M. Davies, the Director of Field Operations for U.S. Customs and Border Protection’s Los Angeles Field Office. “CBP will continue to invest in these partnerships as we work together to keep dangerous drugs out of our communities.”
“California is safer today thanks to this collaborative effort between our federal and local law enforcement partners,” said California Attorney General Rob Bonta. “Illicit drugs such as fentanyl can kill and have no place in our neighborhoods. I am proud of the task force officers working hard in our L.A IMPACT task force, and inspired by their commitment to ensuring the safety and well-being of all Californians.”
U.S. v. Sandoval:
An 18-count indictment returned on January 4 charges 10 defendants for their roles in an organization which allegedly began operating on an unknown date and continued to on or about March 2023. The charges in the indictment allege two drug trafficking conspiracies; conspiracy to import cocaine; drug exportation conspiracy; distribution/possession with intent to distribute controlled substances; possession of a firearm in furtherance of drug trafficking and being a felon in possession of ammunition.
The defendants charged in this indictment are:
- Jesus Ruiz Sandoval Jr., 45, of Guadalajara, Mexico;
- John Joe Soto, 42, of Guadalajara, Mexico;
- Eduardo Carvajal, 50, of Guadalajara, Mexico;
- Roberto Scoppa, 55, of Montreal, Canada;
- Ayush Sharma, 25, of Brampton, Canada;
- Subham Kumar, 29, of Calgary, Canada;
- Carlos Barragan, 51, of Long Beach, California;
- Corell Carbajal Garcia, 38, of Hemet, California;
- Humberto Luis Bermejo, 26, of Odessa, Texas; and
- Esteban Sinhue Mercado, 24, of San Jacinto, California.
Sandoval Jr., who is currently a fugitive, is believed to be a large-scale drug trafficker involved in importing drugs from Mexico into the United States for distribution. John Joe Soto is believed to work under Sandoval. Eduardo Carvajal, also an alleged large-scale drug-trafficker, is believed to export drugs from the United States to Canada. Robert Scoppa is an alleged Canadian drug trafficker with close ties to an Italian organized crime family in Montreal. Barragan is an alleged drug trafficker who lives in the United States. Sharma and Kumar are semi-truck drivers involved in exporting drugs to Canada.
U.S. v. Sidhu:
A 23-count indictment returned on January 3 charges nine defendants for their roles in a related criminal enterprise which allegedly operated from at least September 2020 through February 2023. In addition to a drug trafficking conspiracy, the indictment alleges a drug exportation conspiracy and substantive counts of distribution/possession with intent to distribute controlled substances.
The defendants charged in this indictment are:
- Guramrit Sidhu, 60, of Brampton, Canada;
- Ivan Gravel Gonzalez, 32, a resident of both the Dominican Republic and Montreal, Canada;
- Daniel Antonio Trejo Huerta, 43, of Riverside, California;
- Ignacio Lopez, 53, a resident of Santa Ana, California;
- Daniel Joseph Alan Herrera, 27, of Miami;
- Orlando Velasco Jr., 29, of Stanton, California;
- Angel Larry Sandoval, 32, of Bell Gardens, California;
- Jorge Pina Nicols, 22, of Long Beach, California; and
- Bryan Ureta Valenzuela, 24, of Ontario, California.
Sidhu is alleged to have orchestrated the trafficking and exportation of large-scale quantities of controlled substances to Canada working with several co-defendants described as suppliers. Ivan Gravel Gonzalez is alleged to be part of Sidhu’s exportation team based in the United States. Sidhu, also known as “King,” is charged with one count of engaging in a continuing criminal enterprise. According to the indictment, Sidhu occupied a position of organizer, supervisor and manager, and in this role obtained substantial income and resources.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, each defendant would face maximum penalties ranging from 40 years to life in federal prison. If convicted, Sidhu would face a mandatory minimum penalty of 20 years in prison. If convicted, Sandoval and Carvajal each would face a mandatory minimum penalty of 15 years in prison.
This case is part of an ongoing investigation by international law enforcement partners including the FBI, the Los Angeles Police Department and the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (LA IMPACT), the Royal Canadian Mounted Police, U.S. Customs and Border Protection, and law enforcement authorities in Mexico. Significant assistance was provided by Homeland Security Investigations and the Drug Enforcement Administration.
The Justice Department’s Office of International Affairs; the FBI’s Legal Attaché Offices in Mexico City, Ottawa and New Delhi; and the FBI Field Offices in Miami, El Paso and Buffalo provided substantial assistance and support.
Operation Dead Hand 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.
Assistant United States Attorney Brittney M. Harris of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
Federal Indictment Charges Man with Assaulting and Robbing Two Postal Carriers in Chicago SuburbRead the Press Release
CHICAGO — A federal grand jury has indicted a man for allegedly assaulting and robbing two postal carriers in the Chicago suburb of Evanston, Ill.
EVERETT G. PULLETT, 33, of Evanston, Ill., assaulted and robbed a postal carrier on Sept. 26, 2022, and another on Sept. 27, 2022, according to an indictment unsealed Monday in U.S. District Court in Chicago. In the second robbery, Pullett displayed a firearm while assaulting and injuring the postal carrier, the indictment states. Law enforcement later recovered from Pullett a U.S. Postal Service key, the indictment states.
Pullett is currently detained in law enforcement custody. He was arraigned Monday in federal court in Chicago and pleaded not guilty to charges of assaulting and robbing the postal carriers and illegally possessing the key. The most serious offense – the second assault that injured and jeopardized the life of the postal carrier – carries a maximum sentence of 25 years in federal prison, while the first assault and the key possession are each punishable by up to ten years.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ruth Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. Valuable assistance was provided by the Evanston Police Department. The government is represented by Assistant U.S. Attorney Stephanie C. Stern.
“U.S. Postal Service employees delivering mail to the American people must be allowed to do so safely and securely,” said Acting U.S. Attorney Pasqual. “Individuals who use violence against postal carriers to gain access to the public's mail must be held accountable.”
“This indictment is another example of the roles postal inspectors and our law enforcement partners play in protecting Postal Service employees and customers,” said Inspector-in-Charge Mendonça. “As Postal Service employees continue to play an integral role in our communities, we are clear in our resolve to aggressively investigate anyone who brings harm to these invaluable public servants.”
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Pullett indictmentFayette Woman Pleads Guilty to Fraudulently Obtaining Hydrocodone PillsRead the Press Release
Jackson, Miss. – A Fayette woman pleaded guilty to fraudulently obtaining possession of a controlled substance.
According to court documents and facts admitted in open court, Rosie Marie George, 57, used her position as a pharmacy technician at a pharmacy in Jefferson County, Mississippi to fraudulently acquire large numbers of prescription hydrocodone pills from the pharmacy’s inventory.
George will be sentenced on April 30, 2024, and faces a maximum penalty of four years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Acting Special Agent in Charge Steve Hofer of the Drug Enforcement Administration made the announcement.
The case was investigated by the DEA as well as the Mississippi Board of Pharmacy and the Mississippi Bureau of Narcotics.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
Financial Advisor Indicted for Wire FraudRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on January 17, 2024, a grand jury returned an indictment charging Robert C. Starnes with two counts of committing wire fraud, in violation of Title 18, United States Code, Section 1343.
According to the indictment, Starnes allegedly operated Robert C. Starnes Financial Services, and was a registered investment advisor. Starnes, citing his role as an investment advisor, would seek investment funds from his clients, promising safe returns on those investments. Once someone agreed to invest, Starnes would ask for funds, which he then deposited into his personal bank account. The indictment alleges that Starnes then used these funds to pay his personal expenses. The indictment further explains that Starnes would provide investors with fabricated account statements showing fake investment returns, and, when an investor asked to withdraw money from these accounts, Starnes would send them funds to continue the scheme by persuading them that he had invested their assets.
If convicted, each count carries a maximum of twenty years in prison and up to three years of supervised release.
The Wisconsin Department of Criminal Investigation and the United States Internal Revenue Service investigated the case, which Assistant United States Attorney Carter B. Stewart will prosecute.
The public is cautioned that an indictment or criminal complaint is merely a charge, and the defendant is presumed innocent until and unless proven guilty.
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Duo Responsible for Three Armed Robberies in Central Indiana Sentenced to a Combined Ten ½ Years in Federal PrisonRead the Press Release
INDIANAPOLIS- Corey Rice, 19, and Antonio Williams, 19, both of Indianapolis, have been sentenced to 60 and 66 months respectively in federal prison after pleading guilty to three counts of interference with commerce by robbery.
According to court documents, on April 23, 2023, Corey Rice and Antonio Williams robbed a Subway restaurant located in Beech Grove. Both men approached the employees and threatened them with weapons that appeared to be firearms, demanded cash, and obtained about $400.
On April 30, 2023, at approximately 5:15pm, Rice and Williams robbed Indy Smoke Time in Greenwood. They again brandished apparent firearms at the employees, demanded cash, and walked out with $570. On the same day, just 45 minutes later, Rice and Williams robbed a Family Dollar store on West Washington Street in Indianapolis, also brandishing apparent firearms. The duo left with an unidentified sum of money.
Approximately ten minutes after the Family Dollar robbery, IMPD officers observed Rice and Williams arrive at an apartment complex on the Central Canal in downtown Indianapolis. Prior to making arrests, officers observed both defendants dispose of grey trash bags. Williams was subsequently interviewed and admitted that he threw the cash from the robberies into the canal after seeing police approach.
“Armed robbery is a serious offense that puts innocent lives at risk for nothing more than a quick buck. These young men falsely believed they could terrorize and threaten law-abiding citizens and businesses without any repercussion,” said U.S. Attorney Zachary A. Myers. “We are grateful for the quick actions taken by IMPD and FBI to halt these criminals in their track and reduce the possibility of even more gun violence.”
“These two men used guns to intimidate workers, putting innocent people in fear for their lives so they could steal a few hundred dollars from the cash registers. The sentences imposed send a clear message that these are serious crimes and the people who utilize these violent acts will be held accountable,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “Through continued collaboration with our partners, the FBI will work tirelessly to ensure the safety of our communities.”
FBI and IMPD investigated this case. The sentence was imposed by U.S. District Court Judge Sarah Evans Barker. Judge Barker also ordered that Rice and Williams each be supervised by the U.S. Probation Office for 3 years following their release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Jeremy C. Fugate, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Dubuque Man Sentenced to Federal Prison for Being a Prohibited Person in Possession of a FirearmRead the Press Release
A man who possessed a firearm as a felon and unlawful drug user was sentenced today to nine years in federal prison.
Eric Thomas, age 49, from Dubuque, Iowa, received the prison term after an August 7, 2023 guilty plea to one count of being a prohibited person in possession of a firearm.
At the plea hearing, Thomas admitted that, in January 2023, he possessed a Ruger pistol after having been convicted of multiple felonies and while being an unlawful drug user. Evidence at the sentencing hearing showed that, on January 23, 2023, Thomas sold a mixture of heroin and fentanyl to another person while at Thomas’s residence. That same day, law enforcement officers searched Thomas’s residence and located a Ruger pistol and 2.14 grams of a mixture containing heroin and fentanyl in Thomas’s bedroom.
Thomas was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Thomas was sentenced to 108 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Thomas is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorney Devra Hake and was investigated by the Dubuque Drug Task Force (consisting of the Dubuque County Sheriff’s Office and the Dubuque Police Department).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-1012.
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Drug Dealers Sentenced to 108 Months Federal Prison for Attempted Possession with Intent to Distribute MethamphetamineRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants Francisco Herrera Salas, age 43, from Barrigada, Guam and Joseph Mesa Babauta, age 48, from Agat, Guam, were sentenced each to serve 108 months in federal prison. They were convicted of Attempted Possession with Intent to Deliver Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered both defendants to serve 3 years of supervised release following imprisonment and to pay a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
In December 2020, federal agents intercepted three priority mail packages containing methamphetamine, one of which was addressed to “Frankie Salas.” The Salas package contained 1,781 grams of methamphetamine, which was replaced with a sham substance. During a controlled delivery, Salas claimed the package and drove to a location in Agat. Agents were alerted that the package had been opened. They also saw Babauta driving a vehicle away from the scene. Agents then stopped the vehicle and found the sham substance from the Salas package on the front seat. Soon after, agents stopped Salas in the same vehicle he used to pick up the package from the post office. Both Babauta and Salas had clue spray on their hands and clothing, indicating they had opened the Salas package or handled the contents.
“The Postal Inspection Service continues to interdict drug trafficking in our mail system,” stated United States Attorney Anderson. “We will aggressively prosecute those associated with this illicit activity. As this case demonstrates, a conviction under federal law can result in substantial penalties.”
The United States Postal Inspection Services, Drug Enforcement Administration Los Angeles Field Division – Guam Office, and Guam Customs & Quarantine Agency investigated this matter.
This case was prosecuted by Stephen F. Leon Guerrero and Benjamin K. Petersburg, Assistant United States Attorneys in the District of Guam.
Drug Boss Melvin Naputi Sentenced to 360 Months Federal Prison for Trafficking Methamphetamine and Felon in Possession of a FirearmRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Melvin John Salas Naputi, age 51, from Guam, was sentenced to 30 years imprisonment. Naputi was charged and convicted of Attempted Possession with Intent to Deliver Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1) and Felon in Possession of a Firearm and Ammunition, in violation of 18 U.S.C. §922(g)(1). The Court also ordered 10 years of supervised release following imprisonment and a mandatory $200 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On August 8, 2018, U.S. Marshals executed a federal arrest warrant for Naputi at a hotel room in Tumon, Guam. A female accompanied Naputi at the room. She was present as officers conducted a safety sweep, during which drug paraphernalia was found in plain sight. The female admitted that there were illegal drugs and a firearm in the hotel room and consented to a more thorough search. Law enforcement found 15 grams of methamphetamine in an ice bucket, 4.59 grams of methamphetamine in a pouch, cocaine, drug packaging material, drug paraphernalia, firearms, and ammunition as well as $7,405 in drug proceeds.
On April 4, 2021, U.S. Postal Inspection Services (USPIS) intercepted a package addressed to “Tina Lay,” which contained 926 grams of methamphetamine with a purity level of 100%. USPIS replaced the drugs with a sham substance and coordinated with task force officers for the delivery of the package to the addressed recipient. The package was delivered to a mailbox and then picked up by a male riding a motorcycle. It was tracked to a residence located in Mangilao, Guam. Task force officers entered the home once package was opened. Naputi climbed out of a window and ran away leaving behind his backpack, cell phones, the package, and the vehicle. His backpack was found to contain $24,075 in cash, plastic baggies, three scales, calibration weights, and 821 grams of methamphetamine. Two plastic bags on the front seat of the vehicle contained $71,000 in cash.
Naputi was arrested in July 2023. He was found in possession of 3,442 grams of methamphetamine (roughly 7 ½ pounds) and $219,144 in cash, amounting to the illegal proceeds of drug distribution. Law enforcement also seized vehicles, electronics, jewelry, and other miscellaneous items.
“Naputi was a serious threat to public safety in Guam,” stated United States Attorney Anderson. “The outstanding work of our federal partners and Guam agencies brought this defendant to justice. We will continue to focus federal resources to combat drug trafficking and firearm violations in an effort to protect our communities.”
“Organized trafficking of methamphetamine and other illegal drugs contributes to the unacceptable level of violence in Guam and the Northern Mariana Islands. Those who persist in engaging in dangerous criminal conduct despite determined efforts to dissuade them will be held accountable,” said Homeland Security Investigations Special Agent in Charge John F. Tobon. “Dismantling drug trafficking organizations and taking guns out of the hands criminals, is a critical part of our fight to reduce violent crime in our communities.”
“Following the issuance of a warrant of arrest, a comprehensive law enforcement effort was undertaken to locate and capture this fugitive. During the fugitive investigation, credible information surfaced concerning this fugitive’s continuing criminal activity,” said Deputy U.S. Marshal, Pedro Patrick Cortez. “The United States Marshals Service is committed to capturing fugitives, disabling their criminal activity and keeping our community safe.”
“Melvin Naputi was a fugitive for years and a drug dealer known for violence for years, if not decades,” said Resident Agent in Charge Kenneth L. Bowman. “It’s good that he will be off the streets of Guam for a long time.”
“Drugs and firearms make a very deadly combination to the safety of our communities,” said ATF Seattle Field Division Special Agent in Charge Jonathan E. Blais. “ATF will not stop in our mission of investigating those involved in actions such as these. This sentence sends a strong message to Mr. Salas that this behavior will not be tolerated.”
“The FBI remains committed to working with our law enforcement partners to remove dangerous criminals who destroy and harm lives in our neighborhoods in Guam,” said FBI Special Agent in Charge Steven Merrill. “Justice was served today as Naputi was sentenced for distribution of methamphetamine and being a felon in possession of firearms.”
“Postal inspectors are committed to keeping dangerous weapons and controlled substances like methamphetamine out of the mail and off the street in Guam and across the United States, " said San Francisco Division Inspector-in-Charge Rafael Nuñez. "I would like to thank our law enforcement partners at the Guam Customs and Quarantine Agency, the Guam Police Department, and the federal government for sharing this responsibility with us.”
This case was a joint investigation conducted by United States Marshals Service, Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration Los Angeles Field Division – Guam Office, Department of Homeland Security, United States Postal Inspection Services, Federal Bureau of Investigation, and the Guam Police Department.
The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
District Man Found Guilty of Armed Carjacking of Handyman’s Car, Which He Crashed During A Police ChaseRead the Press Release
WASHINGTON – Gianni Saunders, 21, of Washington, D.C., was found guilty today of the May 24, 2023, armed carjacking of a handyman as the victim exited his car in the 2800 block of Denver Street SE, announced U.S. Attorney Matthew M. Graves and Metropolitan Police Department Chief Pamela A. Smith.
Following a week-long trial in the Superior Court of the District of Columbia, the jury found Saunders guilty of armed carjacking, armed robbery, and two counts of possession of a firearm during a crime of violence. The Honorable Errol Arthur scheduled sentencing for April 10, 2024. At sentencing, Saunders faces a mandatory minimum sentence of 15 years in prison.
According to the government’s evidence, at approximately 1:24 pm on May 24, 2023, the victim pulled up to the 2800 block of Denver Street SE to make repairs inside a residential building. Saunders, armed with a handgun with an extended magazine, demanded the victim’s car keys. Saunders then drove off in the victim’s black Honda Civic. Police apprehended Saunders two days later when Forest Heights, Maryland, police officers attempted a traffic stop of the stolen car. Saunders led police on a high-speed chase before causing a multi-car crash. Police pulled Saunders from the driver’s seat after the crash and recovered a handgun with an extended magazine from the car, along with the victim’s identification documents. The police investigation uncovered surveillance video that showed Saunders parking the stolen car at his residence hours after the carjacking; Saunders’ appearance and clothing were consistent with the victim’s description of the carjacker. The government also introduced DNA evidence, which linked Saunders to the handgun.
This case was investigated by the Metropolitan Police Department. Invaluable assistance was provided by the Forest Heights Police Department from the inception of the case through trial. It was prosecuted by Assistant U.S. Attorneys Gregory Gimenez and Iris McCranie of the Major Crimes Unit of the U.S. Attorney’s Office for the District of Columbia.
Detroit Man Convicted of Sex Trafficking and Production of Child Pornography ChargesRead the Press Release
DETROIT – A Detroit man was convicted by a federal jury today on charges of sex trafficking a minor and producing child pornography, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan.
Lavonte Sampson, 39, was convicted following a five-day jury trial before United States District Judge Gershwin A. Drain. The jury deliberated approximately two hours before returning their verdicts.
Evidence presented at the trial established the investigation began when the Federal Bureau of Investigation’s Southeast Michigan Trafficking and Exploitation Crimes Task Force conducted an undercover operation to recover a missing 15-year-old girl. A search of her cellular phone uncovered Facebook messages wherein Sampson recruited her to engage in commercial sex work. He took pictures of her and advertised her online for commercial sex. He took her to a motel in Detroit, where he arranged dates between her and other men and collected the proceeds. Sampson also had sex with the victim, recorded it without the victim’s knowledge, and sent that video recording to the undercover agent when arranging a date.
U.S. Attorney Ison stated, “This defendant exploited a vulnerable child. He sold her body to other men for his own personal gain. Combatting human trafficking remains one of our office’s top priorities, especially when it involves children. We will continue to use every tool in our arsenal to battle the sexual exploitation of vulnerable victims in our communities and ensure that predators are held accountable. And while we aggressively pursue this type of justice for all human trafficking victims, at all times, this verdict today, during the end of Human Trafficking Prevention Month, puts a fine point on our unwavering commitment to this important work.”
“The FBI is deeply committed to protecting the most vulnerable members of our society, particularly our children, and bringing predators like the defendant to justice,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “We would like to extend our appreciation to our wide network of law enforcement partners, particularly those on the FBI’s Southeast Michigan Trafficking and Exploitation Crimes (SEMTEC) Task Force, for their critical support in investigating sexual predators who commit crimes against children. The FBI encourages continued vigilance, cooperation, and reporting from the public to help identify and recover victims and bring perpetrators to justice. If you believe you may have any information on crimes of this nature, please contact the National Center for Missing & Exploited Children at 1-800-THE-LOST or online at report.cybertip.org.”
The Court will schedule a sentencing hearing at a later date. Sampson faces a mandatory-minimum sentence of 15 years in prison and a maximum up to life.
January is Human Trafficking Prevention Month, a time to educate ourselves and raise awareness in our communities about this devastating crime that violates the most basic human rights –freedom. If you are a victim of human trafficking or suspect you know one, please call the FBI, your local law enforcement, or the National Human Trafficking Hotline at 1-888-373-7888.
This case was investigated by the Federal Bureau of Investigation’s Southeast Michigan Trafficking and Exploitation Crimes Task Force and was prosecuted by Assistant U.S. Attorneys David Cowen, Jeanine Brunson, and Ranya Elzein.
Columbus, Ohio, Resident Sentenced to Prison and Supervised Release for Fentanyl and Heroin OffensesRead the Press Release
PITTSBURGH, Pa. – A resident of Columbus, Ohio, was sentenced to 37 months in federal prison for conspiring to distribute fentanyl and heroin and for possessing fentanyl and heroin with intent to distribute, United States Attorney Eric G. Olshan announced today.
Jackie Bell, 32, was sentenced by United States District Judge Cathy Bissoon, who also ordered Bell to serve six years of supervised release following his prison sentence.
According to information presented to the Court, Bell served as an interstate source of fentanyl and heroin for drug dealers in Mercer County in 2021. At that time, Bell had 2012 and 2018 fentanyl and heroin trafficking and possession convictions from two Ohio prosecutions that both involved fatal drug overdoses, and also was on probation in Ohio following a separate 2019 conviction for aggravated drug possession.
Assistant United States Attorneys Benjamin C. Dobkin and Craig W. Haller prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, the Hermitage Police Department, and the Farrell Police Department for the investigation leading to the successful prosecution of Bell.
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.
Collins Sex Offender Sentenced to 17 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Collins, Mo., man who is a registered sex offender was sentenced in federal court today for receiving child pornography on his cell phone.
Billy Puckett, 39, was sentenced by U.S. District Judge M. Douglas Harpool to 17 years in federal prison without parole.
On June 6, 2023, Puckett was found guilty at trial of one count of receiving child pornography. Puckett, a registered sex offender, has two prior felony convictions for statutory rape and a prior felony conviction for statutory sodomy.
A Missouri State Highway Patrol trooper initiated a traffic stop near the intersection of Highway 13 and East 316 Road in Bolivar, Mo., on Aug. 28, 2020. The trooper, who learned that Puckett was a registered sex offender, searched Puckett’s vehicle and found a cell phone plugged into a cigarette lighter. When the phone’s screen activated, the trooper noticed Puckett had Facebook and Snapchat applications on the phone, which were not authorized due to Puckett’s status as a registered sex offender. The trooper seized Puckett’s phone, on which he located multiple images of child pornography, and Puckett was arrested.
Investigators conducted a forensic examination of Puckett’s phone and found hundreds of images of child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Citizen of Dominican Republic Sentenced to 79 Months in Prison for $16 Million COVID-19 Unemployment Benefits Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that YOHAURIS RODRIGUEZ HERNANDEZ was sentenced to 79 months in prison in connection with her participation in a fraudulent scheme to obtain over $16 million in Government benefits intended to provide relief to individuals without employment during the COVID-19 pandemic. RODRIGUEZ HERNANDEZ previously pled guilty to conspiracy to commit wire fraud, theft of government funds, and aggravated identity theft before U.S. District Judge Philip M. Halpern, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Yohauris Rodriguez Hernandez participated in a scheme that systematically targeted Government funds established as a safety net for millions of people across the United States struggling to make ends meet during the COVID-19 pandemic. Today’s sentence demonstrates that this Office and our law enforcement partners continue to work tirelessly to prosecute those who sought to commit pandemic relief fraud.”
According to court documents and statements made during court proceedings:
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in unemployment insurance benefits payable to eligible, lawful workers and administered through state agencies, such as the New York State Department of Labor (“NYS DOL”) in New York, in accordance with federal laws and regulations.
From February 2020 through December 2020, RODRIGUEZ HERNANDEZ and her co-defendant, Henry Fermin, along with others, participated in a scheme to obtain COVID-19 unemployment benefits through the fraudulent filing and verification of hundreds of benefit applications using the names and social security numbers of numerous other individuals. Law enforcement agencies were first alerted to the scheme after RODIRGUEZ HERNANDEZ and Fermin fled a Yonkers hotel in December 2020, leaving behind in their previously occupied room approximately 747 pieces of mail from the NYS DOL. Those pieces of mail contained, among other unemployment benefit-related materials, NYS DOL-issued prepaid debit cards for numerous other individuals linked to approximately 568 New York State unemployment insurance benefit accounts. Over the course of the relevant time period, RODRIGUEZ HERNANDEZ and Fermin exchanged numerous text messages, images, and other communications that included personal identifying information — such as names, social security numbers, and dates of birth — that were used in connection with the filing and verification of numerous fraudulent applications for unemployment benefits primarily in New York as well as other states. RODRIGUEZ HERNANDEZ also recruited and bribed a letter carrier of the U.S. Postal Service, who in turn enlisted two other postal workers, to collectively intercept NYS DOL mail that RODRIGUEZ and her co-conspirators directed to addresses on each of the postal workers’ respective postal routes.
Overall, the fraudulent scheme resulted in at least approximately $16.1 million in unemployment insurance benefit payments authorized across hundreds of accounts and at least approximately $3.2 million in actual benefit payments disbursed.
* * *
In addition to the prison term, RODRIGUEZ HERNANDEZ, 42, of the Dominican Republic, was sentenced to three years of supervised release and ordered to forfeit $3,294,368.50 and to pay $3,294,368.50 in restitution.
Mr. Williams praised the outstanding investigative work of the Department of Labor Office of Inspector General, the U.S. Postal Inspection Service, the Social Security Administration Office of Inspector General, and the U.S. Postal Service Office of Inspector General. Mr. Williams also thanked the City of Yonkers Police Department, the NYS DOL, Homeland Security Investigations, Immigrations and Customs Enforcement, and the New York City Police Department for their assistance with the investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Kevin Sullivan is in charge of the prosecution.
Chinese Nationals Charged with Illegally Exporting U.S-Origin Electronic Components to Iran and Iranian Military AffiliatesRead the Press Release
WASHINGTON – An indictment, filed in the District of Columbia, charges Chinese nationals Baoxia Liu a/k/a Emily Liu, 42, Yiu Wa Yung a/k/a Stephen Yung, 63, Yongxin Li a/k/a Emma Lee, 36, and Yanlai Zhong a/k/a Sydney Chung, 40, with various federal crimes related to a years-long conspiracy to unlawfully export and smuggle U.S.-origin electronic components from the United States to Iran. According to court documents, Baoxia Liu aka Emily Liu; Yiu Wa Yung aka Stephen Yung; Yongxin Li aka Emma Lee; and Yanlai Zhong aka Sydney Chung unlawfully exported and smuggled U.S. export controlled items through China and Hong Kong ultimately for the benefit of entities affiliated with the Islamic Revolutionary Guard Corps (IRGC) and Ministry of Defense and Armed Forces Logistics (MODAFL), which supervises Iran’s development and production of missiles, weapons, and military aerial equipment to include Unmanned Aerial Vehicles (UAVs).
The indictment was announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, FBI Special Agent in Charge Cheyvoryea Gibson of the Detroit Field Office, and Special Agent in Charge Aaron Tambrini of the Department of Commerce’s Chicago Field Office, Office of Export Enforcement.
According to the indictment, beginning as early as May 2007 and continuing until at least July 2020, the defendants utilized an array of front companies in the People’s Republic of China (PRC) to funnel dual-use U.S.-origin items, including electronics and components that could be utilized in the production of UAVs, ballistic missile systems, and other military end uses, to sanctioned Iranian entities with ties to the Islamic Revolutionary Guard Corps (IRGC) and Ministry of Defense and Armed Forces Logistics (MODAFL) such as Shiraz Electronics Industries (SEI), Rayan Roshd Afzar, and their affiliates.
Throughout the course of the conspiracy, the defendants concealed the fact that the goods were destined for Iran and Iranian entities and made material misrepresentations to U.S. companies regarding the end destination and end users. These deceptive practices caused the U.S. companies to export goods to the defendants’ PRC-based front companies under false pretenses and under the guise that the ultimate destination of these products was China as opposed to Iran. As a result, a vast amount of dual-use U.S.-origin commodities with military capabilities were exported from the United States to Iran in violation of U.S. sanctions and export control laws and regulations.
“Our indictment alleges a years-long, complex conspiracy to violate U.S. laws by procuring U.S. technology with military uses for entities in Iran who would do us harm – a serious offense that endangers our national security,” said U.S. Attorney Matthew M. Graves. “Our office, along with our federal law enforcement partners, will continue to turn over every stone to find those who break our laws and put us at risk. We are committed to making sure that U.S. technology is kept out of the hands of those taking aim at the U.S. and its citizens through robust enforcement of U.S. sanctions.”
“For more than a decade, the defendants allegedly orchestrated a scheme to smuggle U.S. manufactured parts to the IRGC and the Iranian agency charged with developing ballistic missiles and UAVs,” said Assistant Attorney General Matthew G. Olsen of the Justice Department's National Security Division. “Such efforts to unlawfully obtain U.S. technology directly threaten our national security, and we will use every tool at our disposal to sever the illicit supply chains that fuel the Iranian regime's malign activity.”
“Aggressively combatting illicit procurement networks that support Iranian miliary systems like radars and UAVs is essential to U.S. national security,” said Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement. “Today’s indictment, tied to the work of the Disruptive Technology Strike Force, reaffirms that proliferators cannot hide behind front companies in third countries to funnel technology to our adversaries.”
“The theft of technology from the U.S. to Iran and Iranian military affiliates is a threat to our economic and national security,” said Special Agent in Charge Cheyvoryea Gibson, of the FBI’s Detroit Field Office. “The FBI remains committed to combating the illegal transfer of technology and export fraud. We will continue to work with our national security partners to investigate anyone who seeks to weaponize U.S. technology or commodities.”
“This multi-year investigation is the product of vigorous, cooperative law enforcement focused on denying the diversion and export of sensitive U.S.-origin items to Iran that endanger our national security,” said Special Agent in Charge Aaron Tambrini, of the Office of Export Enforcement’s Chicago Field Office. “The Office of Export Enforcement, working with our interagency law enforcement partners, is committed to investigating violations of BIS export control rules and prosecuting the individuals involved, as appropriate, whether in the U.S. or abroad.”
The defendants are charged with conspiring to violate the International Emergency Economic Powers Act (IEEPA), violating IEEPA, smuggling goods from the United States, and one count of submitting false or misleading export information. If convicted, the defendants face a maximum penalty of 20 years in prison for violating the IEEPA; up to 10 years in prison for smuggling goods from the United States; and up to five years in prison for each count of conspiracy and submitting false or misleading export information. Arrest warrants have been issued for Liu, Yung, Li and Zhong who all remain fugitives.
This case is being investigated by the FBI’s Detroit Field Office and the Chicago Field Office of the Department of Commerce’s Office of Export Enforcement. The case is being prosecuted by Assistant U.S. Attorney Jack F. Korba for the United States Attorney’s Office in the District of Columbia and Trial Attorneys Heather Schmidt and Yifei Zheng of the National Security Division’s Counterintelligence and Export Control Section.
In June 2023, the Department of Justice joined with the Departments of Commerce, State, and Treasury to issue an advisory to share information about the threat posed by Iran’s procurement, development, and proliferation of UAVs. Four months later, in October 2023, the Department joined with the same interagency partners to issue an advisory describing the threat posed by Iran’s ballistic missile procurement activities. The advisories gave an overview of the key components sought by Iran, the regime’s use of deceptive practices to acquire certain types of technologies, and recommendations for implementing effective compliance controls to minimize sanctions and export control risk.
Charges in an indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cedar Rapids Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
A felon who possessed a firearm pled guilty today in federal court in Cedar Rapids, Iowa.
Malachi Patton Handley, age 23, of Cedar Rapids, was convicted of one count of being a felon in possession of a firearm. At the plea hearing, Handley admitted that, between December 2022 and March 2023, he possessed an SCCY pistol after having been convicted of three felonies.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Handley remains in custody of the United States Marshal pending sentencing. Handley faces a possible maximum sentence of fifteen years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Marion Police Department, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 23-57.
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California Man Sentenced to Prison for Transporting Narcotics Through the Orlando AirportRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Michael Jayson Scarlett (44, Moreno Valley, CA) to five years and six months in federal prison for conspiracy to distribute methamphetamine and possession of methamphetamine with the intent to distribute it. The court also ordered Scarlett to forfeit his cellphone, which was used to commit the offenses. Scarlett entered a guilty plea on August 31, 2023.
According to court documents, on March 5, 2023, Scarlett’s checked bag was searched during an interdiction operation at the Orlando International Airport. Inside, agents located several packages of vacuum-sealed methamphetamine. The packages were later weighed and analyzed by a forensic chemist at the DEA lab and found to contain more than 16 kilograms of methamphetamine. Further investigation revealed that Scarlett had brought narcotics from California to Florida on multiple occasions. He was paid for transporting the narcotics each time.
This case was investigated by the Drug Enforcement Administration with assistance from the Metropolitan Bureau of Investigation. It was prosecuted by Assistant United States Attorney Courtney D. Richardson-Jones.
Burlington Man Sentenced in Federal Court on Bank Robbery ChargeRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that on January 29, 2024, Malik Pratt, 26, of Burlington, Vermont was sentenced by U.S. District Court Judge Christina Reiss to 35 months in prison and three years of supervised release following his guilty plea to robbing the People’s United Bank branch in Burlington, Vermont on March 1, 2022. The Court also ordered Pratt to pay restitution to the bank for the amount stolen.
According to court records, Burlington Police Department officers were dispatched to the People’s United Bank on North Avenue in Burlington on March 1, 2022, at 10:06 a.m. following reports of a bank robbery. Bank employees stated that the robber threatened to shoot them and demanded cash. After acquiring cash, the robber fled the bank on foot, jumping over a fence near the Ethan Allan Parkway to escape. The bank reported a total of $1,316 in U.S. currency stolen. Within weeks, Burlington detectives and federal agents identified Pratt as the robber. He was charged with bank robbery on March 18, 2022, and pleaded guilty on October 11, 2022.
U.S. Attorney Nikolas P. Kerest commended the Burlington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives on their collaborative investigation of Pratt.
The prosecutor is Assistant United States Attorney Paul Van de Graaf. Pratt is represented by Richard R. Goldsborough, Esq.
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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Brooklyn Man Sentenced to 121 Months in Prison for Strongarm Extortion SchemeRead the Press Release
TRENTON, N.J. – A Brooklyn man was sentenced today to 121 months in prison for conspiring with others in a week-long strongarm extortion scheme in 2019, U.S. Attorney Philip Sellinger announced.
Francis A. Garzon, 35, of Brooklyn, New York, previously pleaded guilty before U.S. District Judge Michael A. Shipp to one count of conspiracy to commit Hobbs Act extortion and one count of attempt to commit Hobbs Act extortion. U.S. District Judge Zahid N. Quraishi sentenced Garzon today in Trenton federal court. Garzon’s codefendant, Endrit Kllogjeri, was found guilty following a jury trial in June 2023 and is scheduled to be sentenced on March 21, 2024.
According to documents filed in this case and statements made in court:
From Dec. 1, 2019 through Dec. 9, 2019, Garzon and Kllogjeri conspired and attempted to extort a resident of Monmouth County, New Jersey, and the resident’s son, who resided in Brooklyn, New York. The victim was allegedly threatened with physical harm if the victim did not recover a bag containing property allegedly valued at $100,000 from the victim’s son. Garzon and Kllogjeri further demanded an additional payment of $100,000 as “interest” for the son’s possession of the bag. Garzon admitted that he brandished a revolver at the victim in an effort to intimidate the victim. Over the ensuing week, Garzon and Kllogjeri communicated regularly with the victim’s telephone, continuing to threaten the victim and the victim’s family. Garzon and Kllogjeri were arrested together in a vehicle on Dec. 9, 2019 in Brooklyn. Moments before the arrest, Garzon had attempted to send the victim a text message confirming the victim’s plan to pay the demand.
In addition to the prison term, Judge Quraishi sentenced Garzon to three years of supervised release following Garzon’s release from prison.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the Marlboro Township Police Department, under the direction of Chief Peter Pezzullo; and the New York City Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Office, and Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Boxing Gym Owner Sentenced for COVID Fraud SchemeRead the Press Release
BOSTON – A Lynnfield man was sentenced today in federal court in Boston for fraudulently obtaining multiple Coronavirus Aid, Relief and Economic Security (CARES) Act loans, including funds from the Payroll Protection Program (PPP), and unemployment benefits to which he was not entitled for his boxing gym.
Daniel Olivar, 44, was sentenced by U.S. District Court Judge Indira Talwani to six months in prison, to be followed by three years of supervised release with the first six months to be served in home confinement. Olivar was also ordered to pay restitution in the amount of $50,844. In August 2023, Olivar pleaded guilty to four counts of wire fraud.
Olivar was the owner of Sonny’s Boxing and Fitness, Inc., a boxing club and fitness center in in Middleton. Since at least 2019, Olivar engaged in a scheme to defraud and obtain CARES Act business loans, by filing false and fraudulent applications with the United States Small Business administration (SBA). This included an Economic Injury Disaster Loan from the SBA and a PPP loan. In addition, Olivar filed a claim for unemployment benefits with the State of Massachusetts, falsely claiming that he was laid off from Gold’s Gym. As a result, from January 2020 until at least May 2021, Olivar received unemployment benefits.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of the Criminal Division prosecuted the case.
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.
Biloxi Man Sentenced to Nearly Six Years in Prison for Possession with Intent to Distribute FentanylRead the Press Release
Gulfport, Miss. – A Biloxi man was sentenced to 57 months in federal prison for possession with intent to distribute over 4000 pills containing fentanyl.
Raushaud Ladarius Davis, 28, was sentenced in U.S. District in Gulfport.
According to court records, On June 2, 2023, Davis was pulled over for a traffic violation in Harrison County, Mississippi. Officers searched the vehicle and found over 4000 pills which tested positive for fentanyl.
Davis was indicted by a federal grand jury on June 21, 2023. He pled guilty on October 4, 2023, to one count of possession with intent to distribute fentanyl.
U.S. Attorney Todd W. Gee and Acting Special Agent in Charge Steve Hofer of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration and the Harrison County Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Ada Resident Sentenced to Life for First Degree Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tyler Jay Mullins, age 45, of Ada, Oklahoma, was sentenced to concurrent life sentences in prison for one count of Murder in Indian Country—First Degree, and one count of Causing the Death of a Person in the Course of a Violation of 18 U.S.C. § 924(c).
The charges arose from investigations by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the Office of the Chief Medical Examiner of the State of Oklahoma, and the Ada Police Department.
On June 30, 2022, Mullins was found guilty by a federal jury of one count of Murder in Indian Country—First Degree, and one count of using a firearm to commit that murder. Evidence presented at trial established that in the early morning hours of April 20, 2002, Mullins attacked and beat the victim, transported the victim to another location, then shot the victim three times and buried the body. Oklahoma State Bureau of Investigation agents found the victim’s blood in Mullins’ trunk and on his shoe, leading to Mullins’ eventual confession and disclosure of the location of the victim’s body.
The crimes occurred in Pontotoc and Seminole Counties, within the boundaries of the Chickasaw Nation Reservation and the Seminole Nation Reservation, in the Eastern District of Oklahoma. Mullins originally entered a guilty plea to a state district court charge of First Degree Murder in Pontotoc County District Court in December 2002. That conviction was vacated in March 2021 based on the United States Supreme Court decision in McGirt v. Oklahoma, handed down in July 2020.
“Although the pursuit of justice for the victim’s family was interrupted by a change in jurisdiction, the cooperative work of state and federal law enforcement allowed the United States Attorney’s Office to successfully prosecute the case after more than twenty years,” said United States Attorney Christopher J. Wilson. “The sentences imposed in federal prison now ensure the defendant will spend the rest of his life answering for his heinous crimes.”
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 hearings in Oklahoma City. Mullins will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration.
Assistant United States Attorneys Patrick M. Flanigan and Gregory Dean Burris represented the United States.
Monday 29 January 2024
Yo Arete Yon Sitwayen Ameriken Paske LI Te Vwayaje Ale an Ayiti Ak Entansyon Pou LI Te Fè Abi Seksyèl Sou MinèRead the Press Release
Yon sitwayen ameriken te fè premye aparisyon li nan Kolorado semèn pase a pou l fè fas ak yon akizasyon poutèt li te vwayaje ale an Ayiti ak entansyon pou l komèt zak seksyèl ilegal ak yon moun ki poko gen 18 tan.
Dapre dokiman tribinal yo ak enfòmasyon ki devwale piblikman nan tribinal la, ant 2006 ak 2010, Michael Geilenfeld, ki gen 71 zan, ki soti orijinèlman nan Iowa, te swadizan vwayaje soti nan Ayewopò Entènasyonal Miami pou ale Ayiti plizyè fwa pou li angaje nan rapò seksyèl ak minè. Pandan ke li te an Ayiti, Geilenfeld te jere St. Joseph’s Home for Boys, yon rezidans ki te desèvi timoun ki ekonomikman defavorize nan anviwon ak nan kapital la, Pòtoprens. Plizyè moun ki te rete nan St. Joseph's Home for Boys rapòte ke Geilenfeld te abize yo seksyèlman lè yo pat ko gen 18 tan.
Geilenfeld te jwenn arestasyon li 20 janvye nan Kolorado. Yo akize li pou vwayaj ak entansyon pou li angaje nan kondwit seksyèl ilegal. Si yo kondane li, li ap gen yon pèn maksimòm pou l pase 30 lane nan prizon.
Odyans detansyon Geilenfeld la pwograme pou rekòmanse nan dat premye fevriye.
Asistan Pwokirè Jeneral Enterimè Nicole M. Argentieri nan Divizyon Kriminèl Depatman Jistis la, Avoka Ameriken Markenzy Lapointe pou Distrik Sid Florid, Ajan Espesyal an chaj Anthony Salisbury nan Envestigasyon Sekirite Enteryè (HSI) Miami, ak Ajan Espesyal an chaj Jeffrey B. Veltri nan Biwo FBI Miami Field te fè anons la.
HSI ak FBI ap mennen ankèt sou ka a.
Avoka Jijman Jessica Urban ak Eduardo Palomo nan Seksyon Eksplwatasyon Timoun ak Obsenite nan Divizyon Kriminèl la ak Asistan Avoka Ameriken Lacee Monk pou Distrik Sid Florid la ap pouswiv ka a.
Ka sa a te prezante nan kad Project Safe Childhood, yon inisyativ nan tout peyi a pou konbat epidemi eksplwatasyon ak abi seksyèl sou timoun, Depatman Lajistis te lanse nan mwa me 2006. Project Safe Childhood, ki dirije pa Biwo Avoka Ameriken yo ak Seksyon Eksplwatasyon Timoun ak Obsenite, jere resous federal, leta ak lokal yo pou pi byen lokalize, arete, ak pouswiv moun k ap eksplwate timoun atravè entènèt, epitou pou idantifye ak sove viktim yo. Pou plis enfòmasyon sou Project Safe Childhood, tanpri vizite www.justice.gov/psc.
Nenpòt moun ki gen enfòmasyon ki gen rapò ak sa yo oswa ki ka te yon viktim oswa temwen ta dwe kontakte HSI nan 877-4-HSI TIP (877-447-4847).
Foto Geilenfeld nan 2024.
Yon akizasyon se jis yon akizasyon. Tout akize yo sipoze inosan jiskaske yo pwouve yo koupab san okenn dout rezonab nan yon tribinal.
Violent Kokomo Felon Sentenced to over Five Years in Federal Prison After Posting Instagram Pictures of Himself Illegally Possessing a FirearmRead the Press Release
INDIANAPOLIS- Bradley Morgan, 24, of Kokomo, Indiana, has been sentenced to 68 months in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, in March of 2021, investigators with the Kokomo Police Department Violent Crimes Task Force began an investigation into Bradley Morgan after becoming aware of Instagram posts by Morgan, showing him pointing firearms at the camera. Morgan was known to be a convicted felon, on probation, and had an active warrant at the time of the discovery.
On April 14, 2021, investigators obtained and executed a search warrant at Morgan’s East Taylor Street residence in Kokomo. During the search, investigators found Morgan hiding in the bedroom closet. In the same bedroom, investigators located a quantity of controlled substances, a .40 caliber Glock with a 23-round capacity extended magazine, and a 9mm Smith & Wesson.
Morgan is prohibited under federal law from ever possessing a firearm due to his previous felony convictions for criminal recklessness and criminal recklessness with a dangerous weapon in Howard County.
“Multiple convictions for violent crimes were not enough to convince this offender to stop carrying a deadly weapon,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “The serious federal prison sentence imposed here should send a message to citizens returning to the community from custody: if you choose to possess a gun you will go right back to prison. Our office will continue to partner with the ATF and local task forces in Kokomo and all across our district to ensure that the most dangerous armed offenders are taken off our streets.”
“This is another successful collective investigative effort between federal and local law enforcement agencies to reduce violent crime in our community. The dedicated men and women of the Kokomo Police Department, Howard County Sheriff’s Department, Indiana State Police, and our federal partners will continuously work together to do whatever is necessary to prosecute violent crime offenders and make our communities safer for all law-abiding citizens,” said Chief of Kokomo Police, Doug Stout.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Kokomo Police Department Violent Crimes Task Force investigated this case. The sentence was imposed by U.S. District Court Judge James R. Sweeney II.
U.S. Attorney Myers thanked Assistant United States Attorney Corbin Houston, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Vanderwagon Man Charged with Involuntary ManslaughterRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that a federal grand jury returned a superseding indictment charging Sheldon Carlton Daye with two counts of involuntary manslaughter. Daye, 30, of Vanderwagon, and an enrolled member of the Navajo Nation, will remain on conditions of release pending trial.
According to the indictment, on or about Oct. 2, 2022, Daye killed John and Jane Doe by operating a motor vehicle without due caution and circumspection and with a wanton and reckless disregard for human life.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Daye faces a maximum of 16 years in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant U.S. Attorney Mark Probasco is prosecuting the case.
View the Superseding Indictment# # #
24-10
United States Attorney’s Office Observes National Human Trafficking Prevention MonthRead the Press Release
Memphis, TN – As National Human Trafficking Prevention Month draws to a close, United States Attorney Kevin G. Ritz is renewing his Office’s commitment to prosecuting human traffickers, protecting victims, empowering survivors, and preventing the proliferation of these abhorrent crimes.
Human trafficking is a crime involving the exploitation of a person for labor, services, or commercial sex using physical and/or psychological force, fraud, or coercion. The exploitation of a minor for commercial sex is human trafficking regardless of whether any form of force, fraud, or coercion is used by the trafficker.
“Whether it’s forced labor, domestic servitude, or sex trafficking of children and adults, human trafficking is the exploitation of human beings for profit and has no place in any society,” said Mr. Ritz. “Yet every day, these horrific crimes are happening in the United States and worldwide, stripping victims of their dignity, and forcing them into a life of fear and a state of servitude.”
To enhance awareness and educate the community about human trafficking, the U.S. Attorney’s Office has released a public service announcement on how to identify potential trafficking situations and where to report suspected human trafficking activity.
In that video, U.S. Attorney Ritz highlights the importance of education and outreach in the prevention, identification, and disruption of human trafficking activity, and commends community organizations for their partnership and provision of trauma-informed services to trafficking victims and survivors.
As part of its commitment to this work, the U.S. Attorney’s Office has a team of experienced prosecutors and personnel that handle human trafficking cases. In West Tennessee, this work is handled out of the Office’s National Security and Civil Rights Unit. A federal prosecutor serves as the Western District’s Human Trafficking Coordinator and works closely with the Office’s Victim Witness Coordinator to ensure that the rights and needs of trafficking victims remain central throughout the investigation and prosecution of each case. The Office also works with non-governmental organizations and service providers to ensure that appropriate trauma-informed care and resources are made available to rescued trafficking victims and survivors.
Anyone who has information about a potential human trafficking situation or a person who may be experiencing human trafficking should contact the FBI, local law enforcement, or the National Human Trafficking Hotline at 1-888-373-7888 (text: 233733).
Un citoyen américain arrêté pour avoir voyagé en Haïti avec l'intention d'abuser sexuellement des mineursRead the Press Release
Un citoyen américain a fait sa première comparution au Colorado la semaine écoulée pour répondre à l’accusation d’avoir voyagé en Haïti dans le but d’avoir des relations sexuelles illicites avec une personne de moins de 18 ans.
Selon les documents de la Cour et les informations communiquées en audience publique, entre 2006 et 2010, Michael Geilenfeld, 71 ans, originaire d’Iowa, aurait effectué de multiples voyages partant de l’aéroport international de Miami à destination d’Haïti dans le but d’accomplir des actes sexuels sur des mineurs. Pendant ses séjours en Haïti, Geilenfeld gérait le St. Joseph’s Home for Boys, une résidence desservant les enfants économiquement défavorisés de la capitale, Port-au-Prince, et ses environs. Des anciens résidents du St. Joseph’s Home for Boys ont signalé que Geilenfeld avait abusé d’eux sexuellement a lors qu’ils étaient âgés de moins de 18 ans.
Geilenfeld a été arrêté au Colorado le 20 janvier. Il est accusé d’avoir voyagé avec l’intention d’accomplir des actes sexuels illicites. S’il est reconnu coupable, il encourt une peine maximale de 30 ans d’emprisonnement.
L'audience préalable au placement en détention de Geilenfeld est prévue pour le 1er février prochain.
L'annonce a été faite par Nicole M. Argentieri, procureure adjointe par intérim de la division pénale du département de la Justice ; Markenzy Lapointe, procureur fédéral du district sud de Floride ; Anthony Salisbury, agent spécial responsable des enquêtes du département de la Sécurité intérieure (HSI) à Miami ; et Jeffrey B. Veltri, agent spécial responsable de l’antenne du FBI.
Le HSI et le FBI mènent l’enquête.
Les substituts du procureur Jessica Urban et Eduardo Palomo de la Section chargée des affaires d'exploitation des enfants et d’obscénités de la division pénale et la procureure fédérale adjointe Lacee Monk du district sud de la Floride sont chargés de la poursuite de cette affaire.
Le dossier est porté en justice dans le cadre du projet Safe Childhood, une initiative nationale de lutte contre l’épidémie d’exploitation et d’abus sexuels contre des enfants lancée en mai 2006 par le département de la Justice. Dirigée par les bureaux des procureurs des États-Unis et la Section chargée des affaires d'exploitation des enfants et d’obscénités, le projet Safe Childhood canalise les ressources fédérales, étatiques et locales pour mieux localiser, appréhender et poursuivre les personnes qui exploitent les enfants via l’Internet, ainsi que pour mieux identifier et secourir les victimes. Pour de plus amples informations sur le projet Safe Childhood, veuillez consulter le site www.justice.gov/psc.
Toute personne disposant d’informations sur le sujet ou qui aurait été une victime ou un témoin est priée de contacter le HSI au numéro de téléphone suivant : 877-4-HSI TIP (877-447-4847).
Photo de Geilenfeld en 2024.
Un acte d’accusation est simplement une allégation. Tous les accusés sont présumés innocents jusqu'à ce que leur culpabilité soit prouvée au-delà de tout doute raisonnable devant une cour de justice.
U.S. Citizen arrested for traveling to Haiti with intent to sexually abuse minorsRead the Press Release
MIAMI – A U.S. citizen made his initial appearance in Colorado last week to face a charge for traveling to Haiti with the intent to engage in illicit sexual conduct with a person under the age of 18.
According to court documents and information disclosed in open court, between 2006 and 2010, Michael Geilenfeld, 71, originally of Iowa, is alleged to have traveled from Miami International Airport to Haiti multiple times to engage in sexual acts with minors. While in Haiti, Geilenfeld operated the St. Joseph’s Home for Boys, a residence which served economically disadvantaged children in and around the capital city of Port-au-Prince. Multiple individuals who lived at the St. Joseph’s Home for Boys reported that Geilenfeld sexually abused them when they were under the age of 18.
Geilenfeld was arrested on Jan. 20 in Colorado. He is charged with one count of travel with intent to engage in illicit sexual conduct. If convicted, he faces a maximum penalty of 30 years in prison.
Geilenfeld’s detention hearing is scheduled to resume on Feb. 1.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami, and Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office made the announcement.
HSI Miami and the FBI Miami are investigating the case.
Assistant U.S. Attorney Lacee Monk and Trial Attorneys Jessica Urban and Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone with related information or who may have been a victim or witness should contact HSI at 877-4-HSI TIP (877-447-4847).
Photo of Geilenfeld in 2024.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20008.
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U.S. Citizen Charged with Federal Offenses Related to Millions Stolen from Victims of Online ScamsRead the Press Release
United States Attorney Vanessa Roberts Avery, Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service’s Boston Division, Acting Special Agent in Charge David Meisenheimer of the Internal Revenue Service – Criminal Investigation (IRS-CI), Washington D.C. Field Office, and Acting Special Agent in Charge Christopher Gust of the Treasury Inspector General for Tax Administration (TIGTA), today announced that RICHARD FASANELLA, 54, a U.S. citizen last residing in Venezuela, has been charged with conspiracy, fraud, and monetary offenses related to his alleged role in receiving, moving, and converting money stolen from victims of online scams.
As alleged in the indictment, Fasanella’s associates used various online scams, including romance scams, to defraud dozens of primarily elderly victims of millions of dollars. Fasanella is a registered agent for multiple business entities that were registered in Connecticut and elsewhere in the U.S. Fasanella applied for an Employer Identification Number (“EIN”), also known as a Federal Tax Identification Number, for these various businesses, and he and his associates used the EINs to open business bank accounts in the names of those businesses. Fasanella and his associates then used these bank accounts to deposit cash, money orders, and checks that fraud victims mailed to specified addresses and recipients. Victims also wired money directly from their bank accounts to the bank accounts controlled by Fasanella and his associates. Fasanella and others retained a portion of the fraudulently obtained money and passed the rest of the money to others, primarily through cryptocurrency.
On July 25, 2023, a federal grand jury in New Haven returned a 19-count indictment charging Fasanella. The indictment was unsealed after Fasanella was deported from Bogota, Colombia, on January 22, 2024. On January 26, he appeared before U.S. Magistrate Judge S. Dave Vatti Bridgeport and pleaded not guilty to the charges. He is currently detained.
The indictment charges Fasanella with one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years; four count of mail fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; five counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; one count of conspiracy to commit money laundering and illegal monetary transactions, an offense that carries a maximum term of imprisonment of 20 years; five counts of money laundering, an offense that carries a maximum term of imprisonment 20 years on each count; and three counts of illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years on each count.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
“The Justice Department and our law enforcement partners are committed to rooting out and prosecuting online scammers and their criminal associates who prey upon vulnerable victims,” said U.S. Attorney Avery. “I thank the U.S. Postal Inspection Service, IRS-CI and TIGTA for unraveling this complex scheme and identifying this defendant, and the U.S. Marshals and Migración Colombia for their invaluable assistance in tracking him down and bringing him to justice in the U.S.”
“This investigation, which uncovered a large-scale, complex web of money laundering through the U.S. Mail, reflects the U.S. Postal Inspections Services’ commitment to dismantle schemes by criminals who seek to profit by exploiting victims through fraud,” said Inspector in Charge Ketty Larco-Ward, Boston Division of the U.S. Postal Inspection Service. “This alleged scheme included the victimization of many elderly Americans as well as many international victims. I commend our fellow law enforcement partners, domestic and international, for their assistance with this case. The U.S. Postal Inspection Service will continue to be relentless in fighting crime that impacts the people we serve wherever, and however it occurs.”
“It is alleged that Mr. Fasanella orchestrated brazen schemes of staggering proportions,” said IRS-CI Acting Special Agent in Charge David Meisenheimer. “His arrest is another example of IRS Criminal Investigation and our law enforcement partners commitment to investigate and prosecute those who take advantage of taxpayers for their personal financial gain.”
“The Treasury Inspector General for Tax Administration (TIGTA) aggressively investigates individuals who use the IRS’s programs and tax collecting authority to scam others, especially seniors and other vulnerable populations,” said Christopher Gust, acting Special Agent in Charge. “The defendant in this case is alleged to have done just that by targeting and victimizing the most vulnerable in our society. Our mission at TIGTA is to protect the integrity of our nation’s system of tax administration. We are committed to working with our law enforcement partners to ensure those who endeavor to corrupt federal tax administration are prosecuted to the fullest extent of the law.”
This investigation is being conducted the U.S. Postal Inspection Service, IRS-CI, and TIGTA, with assistance from the U.S. Marshals Service and Migración Colombia. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Judicial Attaché’s office at the U.S. Embassy in Bogota provided assistance. The case is being prosecuted by Assistant U.S. Attorney Heather Cherry.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
To read more about the Justice Department’s efforts to combat elder fraud and abuse click here.
U.S. Citizen Arrested for Traveling to Haiti with Intent to Sexually Abuse MinorsRead the Press Release
A U.S. citizen made his initial appearance in Colorado last week to face a charge for traveling to Haiti with the intent to engage in illicit sexual conduct with a person under the age of 18.
According to court documents and information disclosed in open court, between 2006 and 2010, Michael Geilenfeld, 71, originally of Iowa, is alleged to have traveled from Miami International Airport to Haiti multiple times to engage in sexual acts with minors. While in Haiti, Geilenfeld operated the St. Joseph’s Home for Boys, a residence which served economically disadvantaged children in and around the capital city of Port-au-Prince. Multiple individuals who lived at the St. Joseph’s Home for Boys reported that Geilenfeld sexually abused them when they were under the age of 18.
Geilenfeld was arrested on Jan. 20 in Colorado. He is charged with one count of travel with intent to engage in illicit sexual conduct. If convicted, he faces a maximum penalty of 30 years in prison.
Geilenfeld’s detention hearing is scheduled to resume on Feb. 1.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami, and Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office made the announcement.
HSI and the FBI are investigating the case.
Trial Attorneys Jessica Urban and Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Lacee Monk for the Southern District of Florida are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone with related information or who may have been a victim or witness should contact HSI at 877-4-HSI TIP (877-447-4847).
Photo of Geilenfeld in 2024.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Hosts Federal, State, and Local Partners for ‘United Against Hate’ Event at UCLARead the Press Release
LOS ANGELES – The United States Attorney’s Office hosted its third “United Against Hate” outreach event on Friday, January 26, at UCLA in Westwood, where approximately 200 participants from federal, state, and local civil rights enforcement agencies joined with community leaders to work together to combat the growing problem of hate crimes and incidents.
The event featured remarks by Dolores Huerta, one of the most influential labor activists of the 20th century and a leader of the Chicano civil rights movement, and United States Attorney Martin Estrada.
“As the chief federal law enforcement officer in the nation’s most populous and culturally diverse district, I am troubled by the acts and rhetoric of hate we see across the country,” U.S. Attorney Estrada said. “Hate is meant to divide us, so it is imperative that we come together as a community to reject these acts and embrace the diversity of this nation, which has always been its strength. United, we can overcome hate.”
United Against Hate is a nationwide Department of Justice initiative to inform communities about hate crimes and reporting hate-related incidents. The Department launched the initiative in 2022 with the goal of building trust, opening lines of communication, and strengthening coordination between relevant partners and the community to help combat a growing number of hate and bias-related incidents since 2021.
Today’s event included a panel discussion regarding federal, state, and local initiatives to combat hate that featured leaders of the U.S. Department of Justice’s Civil Rights Division, the California Civil Rights Department, the California Commission on the State of Hate, and L.A. Civil Rights.
Participants at today’s event also received training on identifying, reporting and responding to hate crimes and hate incidents. Additionally, there were presentations by the Justice Department’s Community Relations Service and LA Civil Rights.
Following the event, UCLA hosted a reception for community and governmental leaders.
This is the third United Against Hate event hosted by the United States Attorney’s Office. The office will continue to host presentations throughout the district to help communities understand what hate crimes are, how federal agencies respond to hate crimes, and what people can do to help victims. Community organizations or leaders that wish to partner with the United States Attorney’s office to hold a United Against Hate event in their community should send their request to [email protected].
Anyone who feels they have been the victim of a hate crime or may have witnessed a hate crime should immediately report the crime to state or local police by dialing 911, then quickly report it to the FBI through their online portal or by calling 1-800-CALL-FBI (1-800-225-5324). In addition, please report the incident to the Department of Justice’s Civil Rights Division or by filing a civil rights complaint with the United States Attorney’s Office.
U.S. Attorney’s Office Asks the Public to Turn Human Trafficking Awareness into Action Throughout the YearRead the Press Release
Louisville, KY - As Human Trafficking Awareness month concludes, the U.S. Attorney’s Office for the Western District of Kentucky asks the public to remain vigilant and continue to shed light on this devastating crime that too often goes undetected. Everyone can play a role in detecting and preventing human trafficking. “Join our office in this important mission by turning awareness into action,” said U.S. Attorney Michael A. Bennett. “Know the red flags and when you see them, report. Your tip could be the lifeline a victim desperately needs and the first step in bringing traffickers to justice.”
Look for the signs. Human trafficking is widespread, and no community is immune, including those within the Western District. Trafficking occurs all around us, in our urban cities and across our rural farm communities. Situations can be found in the shadows of the legal businesses we frequent and the service industries we rely on everyday. Trafficking also increases around major events and trade shows that attract large numbers of tourists to our towns, including the Kentucky Derby, basketball tournaments, and farm shows. Learn who is most vulnerable to trafficking and how to spot the signs around you at: https://humantraffickinghotline.org/en/human-trafficking/recognizing-signs.
Report suspected activity. If you are a victim of human trafficking or suspect you know one, please contact the FBI at 1-800-CALL-FBI, the National Human Trafficking Hotline at 1-888-373-7888 or text HELP or INFO to BeFree (233733), or local law enforcement. If you or someone you know is in immediate danger, please call 911. If you believe a child is involved in a trafficking situation, submit a tip through the National Center for Missing & Exploited Children’s Call Center at 1-800-THE-LOST (1-800-843-5678). Tips can be submitted anonymously.
Reporting makes a difference. Tips, no matter how small, could be the critical piece that unlocks an investigation. Recently published Bureau of Justice statistics show an increase in human trafficking suspects referred to and prosecuted by U.S. Attorneys’ Offices across the country. Nationwide, a total of 2,027 persons were referred for federal prosecution for human trafficking offenses in fiscal year 2021, a 49% increase from the 1,360 persons referred in 2011. The number of persons actually prosecuted for human trafficking more than doubled from 2011 to 2021 (from 729 persons to 1,672 persons, respectively).
Reporting also allows law enforcement to join forces with trauma-informed service providers and connects those being exploited to the support and resources they need to escape from their traffickers, end the cycle of exploitation, and rebuild their lives. Direct help is available to survivors by calling or texting the VictimConnect Hotline at 1-855-4VICTIM. Live chat and the VictimConnect Resource Map identifying local service providers are available at https://victimconnect.org/get-help/.
“Every individual deserves a life of freedom and human dignity, so human trafficking awareness must continue throughout the year,” said U.S. Attorney Bennett. “And while raising awareness is important, we must also turn awareness into action in order to dismantle trafficking networks and support survivors. I encourage the public to join forces with us in our continuing fight to end human trafficking and empower survivors.”
Additional resources and information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
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U.S. Attorney Announces Enhanced White-Collar Enforcement Through Increased Staffing and Investigative CoordinationRead the Press Release
RALEIGH, N.C. – Today, Michael Easley, United States Attorney for the Eastern District of North Carolina (EDNC), announced its expansion of its Economic Crimes Section of the office, and that section’s enhanced enforcement in the prosecution of White-Collar Crime through increased partnerships with federal and state law enforcement agencies.
“Our nation is facing ever-increasing frauds and scams, fleecing innocent people of their well-earned savings and taxpayers of their investment in our Nation,” said U.S. Attorney Michael Easley. “We have strengthened our relationships with over 20 agencies investigating white-collar crime in the region. We’ve launched multi-agency working groups on critical issues such as Investment Fraud, Public Health, COVID Fraud, Health Care Fraud, Public Corruption, Elder Fraud, Environmental Crimes, and Money Laundering. These efforts have spurred a surge in the number of investigations opened, and defendants prosecuted in this office.”
Just in 2023, significant white-collar cases brought or prosecuted by the Eastern District of North Carolina included, but were not limited to, the following:
Raleigh ENT Doctor Sentenced to 25 Years in Prison for Adulterating Surgical Devices, for Defrauding Medicare, and for Stealing Patient Identities. Following a lengthy trial, Anita Louise Jackson of Raleigh was sentenced to 300 months in prison for adulterating surgical devices used in more than 1,400 sinus surgeries performed on Medicare patients between 2011 and 2018. Jackson was also ordered to forfeit 4.7 million dollars. (Case No. 5:21-CR-00259-D).
Whiteville Business Owner Sentenced to Federal Prison for Ponzi Scheme. Joseph Floyd, age 76, of Whiteville, NC, was sentenced to 42 months in prison for conspiring to sell and deliver unregistered securities in connection with a multi-million-dollar Ponzi scheme operated for nearly a decade under the guise of a purported investment program. Floyd was also ordered to pay over 10 million dollars in restitution to the victims of the offense. (Case No. 7:23-CR-1-B).
Raleigh man sentenced to 17 years for healthcare fraud. Furman Ford, 54, of Wake County, convicted at a federal trial, was sentenced to 17 years’ imprisonment. Ford conspired to defraud the Medicare Program by submitting false claims for never provided services. (Case No. 5:20-CR-448-D-1)
NCDOC Officer pleads guilty to Covid-19 Fraud Scheme. Sean Dillard, 55, of Hertford County, pled guilty and sentenced to a year in prison for the theft of government property for fraudulently submitting North Carolina Housing Opportunities and Prevention of Evictions (NC HOPE) loan applications for emergency rental assistance. (Case No. 2:23-CR-11-FL)
Raleigh Man Sentenced to Prison for Identity Theft Conspiracy Involving Fraudulent Financing of Vehicles in Excess of $1 Million. Basilio Rafael Garcia, of Raleigh, NC, was sentenced to 54 months in prison for conspiracy and aggravated identity theft. As part of the scheme, the personal identifying information of a Puerto Rico resident was stolen, transferred, and used to fraudulently finance and purchase more than 1 million dollars’ worth of vehicles and watercraft from dealerships in the Eastern and Middle Districts of North Carolina. (Case No. 5:22-CR-48-D).
Former Morgan Stanley Financial Advisor Sentenced to Over 7 Years in Prison for Executing a Multimillion Dollar Ponzi Scheme. Shaun Good of Wilmington was sentenced to 87 months in prison for carrying out a 7-million-dollar investment fraud scheme while employed as an investment advisor for Morgan Stanley Smith Barney, LLC in Wilmington. From 2012 to February 2022, Good solicited investments from business clients and others for purported real estate projects and tax-free municipal bonds, touting these opportunities as low-risk investments that would pay returns of between 6% and 10% over three- or six-month terms. (Case No. 7:22-CR-00096-D).
NC Man Sentenced to 7 Years Imprisonment for Leasing Fraud Scheme. Dan Raymond, the owner of several computer equipment and small business financial consulting companies, was sentenced to 84 months imprisonment for orchestrating more than 20 million dollars in fraudulent lease deals. As part of his plea, Raymond agreed to forfeit 4.7 million dollars in fraud proceeds, along with nearly $170,000 in proceeds from the sale of a residence, $11,650 in cash, and various jewelry, two Rolex watches, gold and silver bars, collectible coins, and apparel from Gucci, Louis Vuitton, and Prada. (Case No. 5:23-CR-96-BO).
Sixteen Plead Guilty in COVID Fraud Scheme. A Texas couple, Edward Whitaker and Schunda Coleman pleaded guilty in January 2023 to conspiracy to commit money laundering for helping dozens of North Carolina residents fraudulently obtain more than 15 million dollars in Paycheck Protection Act (PPP) COVID-19 loans. To date, 14 other defendants have pled guilty for the scheme. (Case No. 5:22-cr-00257-D).
Pharmacy Owner and Technician Both Sentenced to Prison for Health Care Fraud. James Craig Belland Melisha Oxendine West were each sentenced to 24 months imprisonment for their roles in a 4-million-dollar health care fraud scheme run through a pharmacy in Robeson County owned by Bell that had operated under the name Townsend’s Pharmacy. The pharmacy billed Medicare, Medicaid, and various private health plans for prescription drugs that were never actually dispensed by the pharmacy. (Case Nos. 7:22-cr-00107-FL and 7:21-cr-00129-FL).
Raleigh Man Sentenced to Two Years Prison for Mail Theft Scheme. Anthony Messiah Brooks, 21, of Wake County, was sentenced to 2 years in prison after pleading guilty to one count of Possession of Stolen Mail and one count of Conspiracy to Commit Theft of Mail. Brooks was found with 500 pieces of checks, U.S. currency, money orders, gift certificates, and personal identifying information for unknown individuals, all of which came from various blue collection boxes through the Raleigh area. (Case No. 7:22-CR-00068-D)
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for the case number.
Two Ohio Men Convicted of Gambling and Tax OffensesRead the Press Release
On Friday, a federal jury convicted two Ohio men of tax, gambling, money laundering, conspiracy and obstruction crimes related to their operation of illegal gambling businesses in Canton and their scheme to conceal the illicit proceeds from those businesses to avoid paying taxes. Two others involved in the conspiracy pleaded guilty.
Convictions
According to court documents and evidence presented at trial, between 2009 and 2018, Christos Karasarides Jr. and Ronald DiPietro, together with others, operated multiple illegal gambling businesses, including Skilled Shamrock, as part of an organized criminal operation. At Skilled Shamrock, which primarily operated slot machines, patrons gambled more than $34 million between 2012 and 2017, with Skilled Shamrock’s owners retaining more than $7 million. Karasarides and DiPietro sought to conceal their ownership of the gambling businesses through the use of nominee owners and sham contracts.
Karasarides owed the IRS more than $2 million in taxes on income he earned gambling and from other businesses he ran, which the IRS was trying to collect. DiPietro, who was also a Certified Public Accountant, assisted Karasarides in thwarting the IRS’s collection efforts by falsely representing to the IRS, including by preparing tax returns for Karasarides, that Karasarides did not have the assets or income to pay his taxes. Evidence at trial also showed that Karasarides conspired to launder money from his gambling businesses to make it more difficult for the IRS to seize his home by using a straw purchaser to disguise his ownership of it.
Karasarides and DiPietro used the proceeds of their schemes to purchase luxury vehicles and buy and sell property. Karasarides also took several extravagant gambling trips, making millions of dollars of bets at legal casinos throughout the country. They also kept thousands and sometimes hundreds of thousands of dollars in cash or silver at their homes and other properties they controlled. For instance, law enforcement seized more than $150,000 in cash from Karasarides’ house.
Sentencing for both men is scheduled for May 1 before U.S. District Judge Donald Nugent for the Northern District of Ohio. Karasarides faces a maximum penalty of twenty years in prison for conspiracy to commit money laundering, five years in prison for tax evasion, five years in prison for each count of conspiracy to operate an illegal gambling business, five years in prison for each count of conspiracy to defraud the United States, five years in prison for falsification of records, three years in prison for each count of operating an illegal gambling business, three years in prison for witness tampering and three years in prison for filing false income tax returns.
DiPietro faces a maximum penalty of five years in prison for conspiracy to operate an illegal gambling business, three years in prison for operating an illegal gambling business, five years in prison for tax evasion and three years in prison for each count of preparing false income tax returns.
Pleas
Just prior to the trial, Thomas Helmick, who served as a nominee owner of one of Karasarides’ illegal gambling businesses, pleaded guilty to conspiring to defraud the United States. Helmick is scheduled to be sentenced before U.S. District Judge Donald Nugent on May 2. He faces a maximum penalty of five years in prison.
During the course of the trial, Christopher Karasarides, pleaded guilty to conspiring to defraud the United States by executing false documents and acting as a nominee owner for some of Christos Karasarides’ assets. Christopher Karasarides is scheduled to be sentenced before U.S. District Judge Donald Nugent on April 30. He faces a maximum penalty of five years in prison.
A federal district court judge will determine the sentence of each defendant after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation; U.S. Department of Homeland Security, Homeland Security Investigations; the U.S. Department of Treasury, Office of Inspector General; the Stark County Prosecutor’s Office; the Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force are investigating the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Justice Department’s Tax Division and Assistant U.S. Attorney Aaron Howell for the Northern District of Ohio are prosecuting the case.
Two Ohio Men Convicted of Gambling and Tax OffensesRead the Press Release
On Friday, a federal jury convicted two Ohio men of tax, gambling, money laundering, conspiracy and obstruction crimes related to their operation of illegal gambling businesses in Canton and their scheme to conceal the illicit proceeds from those businesses to avoid paying taxes. Two others involved in the conspiracy pleaded guilty.
Convictions
According to court documents and evidence presented at trial, between 2009 and 2018, Christos Karasarides Jr. and Ronald DiPietro, together with others, operated multiple illegal gambling businesses, including Skilled Shamrock, as part of an organized criminal operation. At Skilled Shamrock, which primarily operated slot machines, patrons gambled more than $34 million between 2012 and 2017, with Skilled Shamrock’s owners retaining more than $7 million. Karasarides and DiPietro sought to conceal their ownership of the gambling businesses through the use of nominee owners and sham contracts.
Karasarides owed the IRS more than $2 million in taxes on income he earned gambling and from other businesses he ran, which the IRS was trying to collect. DiPietro, who was also a Certified Public Accountant, assisted Karasarides in thwarting the IRS’s collection efforts by falsely representing to the IRS, including by preparing tax returns for Karasarides, that Karasarides did not have the assets or income to pay his taxes. Evidence at trial also showed that Karasarides conspired to launder money from his gambling businesses to make it more difficult for the IRS to seize his home by using a straw purchaser to disguise his ownership of it.
Karasarides and DiPietro used the proceeds of their schemes to purchase luxury vehicles and buy and sell property. Karasarides also took several extravagant gambling trips, making millions of dollars of bets at legal casinos throughout the country. They also kept thousands and sometimes hundreds of thousands of dollars in cash or silver at their homes and other properties they controlled. For instance, law enforcement seized more than $150,000 in cash from Karasarides’ house.
Sentencing for both men is scheduled for May 1 before U.S. District Judge Donald Nugent for the Northern District of Ohio. Karasarides faces a maximum penalty of twenty years in prison for conspiracy to commit money laundering, five years in prison for tax evasion, five years in prison for each count of conspiracy to operate an illegal gambling business, five years in prison for each count of conspiracy to defraud the United States, five years in prison for falsification of records, three years in prison for each count of operating an illegal gambling business, three years in prison for witness tampering and three years in prison for filing false income tax returns.
DiPietro faces a maximum penalty of five years in prison for conspiracy to operate an illegal gambling business, three years in prison for operating an illegal gambling business, five years in prison for tax evasion and three years in prison for each count of preparing false income tax returns.
Pleas
Just prior to the trial, Thomas Helmick, who served as a nominee owner of one of Karasarides’ illegal gambling businesses, pleaded guilty to conspiring to defraud the United States. Helmick is scheduled to be sentenced before U.S. District Judge Donald Nugent on May 2. He faces a maximum penalty of five years in prison.
During the course of the trial, Christopher Karasarides, pleaded guilty to conspiring to defraud the United States by executing false documents and acting as a nominee owner for some of Christos Karasarides’ assets. Christopher Karasarides is scheduled to be sentenced before U.S. District Judge Donald Nugent on April 30. He faces a maximum penalty of five years in prison.
A federal district court judge will determine the sentence of each defendant after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation; U.S. Department of Homeland Security, Homeland Security Investigations; the U.S. Department of Treasury, Office of Inspector General; the Stark County Prosecutor’s Office; the Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force are investigating the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Justice Department’s Tax Division and Assistant U.S. Attorney Aaron Howell for the Northern District of Ohio are prosecuting the case.
Two More Men Charged with Hacking Fantasy Sports and Betting WebsiteRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a six-count criminal Complaint charging NATHAN AUSTAD, a/k/a “Snoopy,” and KAMERIN STOKES, a/k/a “TheMFNPlug,” in connection with a scheme to hack user accounts at a fantasy sports and betting website (the “Betting Website”) and sell access to those accounts in order to steal hundreds of thousands of dollars from them. AUSTAD was arrested today in Farmington, Minnesota, and is expected to be presented later today before U.S. Magistrate Judge David T. Schultz in the District of Minnesota. STOKES was arrested today in Memphis, Tennessee, and is expected to be presented later today before U.S. Magistrate Judge Annie T. Christoff in the Western District of Tennessee.
U.S. Attorney Damian Williams said: “As alleged, Nathan Austad and Kamerin Stokes were involved a scheme to hack into the accounts of tens of thousands of victims and then to sell access to those stolen accounts online. Our office is relentless in tracking down the perpetrators of cybercrime. Earlier this month, we announced an SDNY Whistleblower Pilot Program to encourage early and voluntary self-disclosure of criminal activity. To all cybercriminals: call us before we call you.”
FBI Assistant Director in Charge James Smith said: “Cyberattacks are growing increasingly more sophisticated, targeting all manner of businesses and posing a great risk to economic security. Nathan Austad and Kamerin Stokes were allegedly part of a cyber intrusion that resulted in hundreds of thousands of dollars being stolen from victims’ accounts. As these defendants found out, if you conduct a cyberattack for profit, you can bet the FBI can and will bring you to justice.”
As alleged in the Complaint:[1]
On or about November 18, 2022, AUSTAD, Joseph Garrison, and others launched a “credential stuffing attack” on the Betting Website. During a credential stuffing attack, a cyber threat actor collects stolen credentials, or username and password pairs, obtained from other large-scale data breaches of other companies, which can be purchased on the darkweb. The threat actor then systematically attempts to use those stolen credentials to obtain unauthorized access to accounts held by the same user with other companies and providers, in order to compromise accounts where the user has maintained the same password. Here, in connection with the attack on the Betting Website, there was a series of attempts to log into the Betting Website accounts using a large list of stolen credentials.
AUSTAD and Garrison successfully accessed approximately 60,000 accounts at the Betting Website (the “Victim Accounts”) through the credential stuffing attack. In some instances, the individuals who unlawfully accessed the Victim Accounts were able to add a new payment method on the account, deposit $5 into that account through the new payment method to verify that method, and then withdraw all the existing funds in the Victim Account through the new payment method (i.e., to a newly added financial account belonging to the hacker), thus stealing the funds in the Victim Account.
Access to the Victim Accounts were sold on various websites that traffic in stolen accounts, which are frequently referred to as “Shops.” AUSTAD and Garrison sold some of the Victim Accounts on shops that they each directly controlled, and AUSTAD’s shop was named after the character Snoopy from the Peanuts comic strip. A photo of AUSTAD’s Shop website with victim companies redacted is below:
As to other of the Victim Accounts, AUSTAD and Garrison sold them in bulk to co-conspirators, who in turn sold them on their own Shops. STOKES controlled his own Shop, used the alias “TheMFNPlug,” and purchased Victim Accounts in bulk from Garrison. Garrison and STOKES messaged each other as to what prices STOKES should charge and what Garrison’s cut of the sales should be. Garrison provided STOKES with Victim Accounts with a total listed account value of over $125,000.
Photos from STOKES’s Instagram account advertising the availability of Victim Accounts for purchase on his Shop are below, with the name of the Betting Website redacted:
On or about December 2, 2022, AUSTAD messaged about the existence of this investigation, “everyone 3hould’ve been prepared for this before cashing out lol,” and a co-conspirator replied, “lol fbi can’t do shit.” On or about May 19, 2023, AUSTAD messaged about the existence of this investigation, “like we I know the risk when we started lol . . . everyone knows their committing fraud.”
In order to advertise the success of his Shop that sold stolen accounts, AUSTAD used artificial intelligence image generation tools to create images using the following prompts: “8k hyper-realistic digital art snoopy hacking into 8k hyper-realistic computer with hacker stuff on the screen,” “8k hyper realistic snoopy designed jet but instead of smoke trails it has money trails,” and, “100 bill hyper realistic but instead of the president its snoopy.” AUSTAD also controlled cryptocurrency accounts that received cryptocurrency worth approximately $465,000, and those accounts appear to be proceeds of his credential stuffing attacks and sale of stolen accounts.
Ultimately, AUSTAD, STOKES, Garrison, and others stole approximately $600,000 from approximately 1,600 Victim Accounts.
Garrison was previously arrested in connection with the attack on the Betting Website, and, on November 15, 2023, he pled guilty to conspiracy to commit computer intrusion in connection with that attack. Garrison’s sentencing is scheduled for February 1, 2024, at 4:00 p.m. before U.S. District Judge Lewis A. Kaplan.
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AUSTAD, 19, of Farmington, Minnesota, and STOKES, 21, of Memphis, Tennessee, are each charged with (i) conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison; (ii) unauthorized access to a protected computer to further intended fraud, which carries a maximum sentence of five years in prison; (iii) unauthorized access to a protected computer, which carries a maximum sentence of five years in prison; (iv) wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; (v) wire fraud, which carries a maximum sentence of 20 years in prison; and (vi) aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams also thanked the New York City Police Department, U.S. Secret Service, and the U.S. Attorney’s Offices for the District of Minnesota and the Western District of Tennessee for their assistance in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kevin Mead and Micah Fergenson are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described therein should be treated as an allegation.
Two Albuquerque Men Charged with 2023 Crime SpreeRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that James Adam Metts and Demetrius Antonnie Bailey have been charged in relation to a summer 2023 crime spree. Bailey, 40, of Albuquerque, previously appeared in federal court on an indictment charging him with one count of interference with commerce by robbery and being a felon in possession of a firearm and ammunition. Today, Metts, 45, of Albuquerque, appeared in federal court on an indictment charging him with eight counts of interference with commerce by robbery, using, carrying and brandishing a firearm during and in relation to a crime of violence, and being a felon in possession of a firearm and ammunition. Bailey and Metts will remain in temporary custody pending a detention hearing, which is scheduled for January 29, 2024.
According to the indictment, on July 11, 2023, Metts and Bailey allegedly took tools from Harbor Freight Tools using force, violence and fear of injury. During the incident, Metts pointed a firearm at John Doe 1, an employee of Brosnan Security at Harbor Freight Tools. Additionally, on Sept. 28, 2023, Bailey allegedly possessed a firearm and ammunition, knowing that he had previously been convicted of multiple crimes.
Following the July robbery, Metts allegedly robbed a Metro by T-Mobile of cash and merchandise using force, violence and fear of injury on Aug. 26, a T-Mobile on Sept. 1, another Metro by T-Mobile on Sept. 9, a Verizon on Sept. 12, another T-Mobile on Sept. 14, and a JC Penney and third T-Mobile on Sept. 16. During the Sept. 16 incident at T-Mobile, Metts allegedly brandished a firearm.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Bailey faces up to 20 years in prison followed by 3 years of supervised release. Metts faces a minimum of seven years and up to 20 years in prison, followed by five years of supervised release.
The FBI Albuquerque Field Office investigated this case with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Maria Elena Stiteler is prosecuting the case.
View the Indictment# # #
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Three More Plead Guilty to Roles in Methamphetamine Trafficking OrganizationRead the Press Release
HUNTINGTON, W.Va. – Today, Talon Aaron McIntosh, also known as “Trey” and “T,” 28, and Mario Alonzo Pettway III, also known as “Mike,” 23, both of Detroit, Michigan, pleaded guilty to distribution of a quantity of mixture and substance containing methamphetamine and Ladonna Rae Abner, 49, of Nitro, pleaded guilty to distribution of fentanyl. All three admitted to their roles in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Southern District of West Virginia.
According to court documents and statements made in court, on February 3, 2023, McIntosh sold a half-pound of methamphetamine for $1,000 to a confidential in Huntington. McIntosh admitted to that transaction and to selling approximately 439 grams of methamphetamine to a confidential informant for $2,000 in Huntington on September 7, 2023.
On October 3, 2023, Pettway sold approximately 2 ounces of methamphetamine to a confidential informant for $200 in Nitro. Pettway admitted to that transaction and to selling a total of approximately 8 grams of fentanyl to the confidential informant in St. Albans on three occasions between April 13, 2023, and May 2, 2023. Pettway further admitted to selling approximately 29 grams of methamphetamine to the confidential informant in St. Albans on June 26, 2023.
McIntosh and Pettway admitted that they participated in the DTO from at least February 2023 through November 2023. McIntosh and Pettway also admitted that on August 14, 2023, McIntosh arranged for Pettway to distribute approximately 55 grams of methamphetamine and 3.5 grams of fentanyl to a confidential informant in Huntington.
On October 4, 2023, Abner sold approximately 1 gram of fentanyl for $120 to a confidential informant in Nitro. Abner admitted to that transaction and to selling a quantity of fentanyl to a confidential informant on October 17, 2023.
On November 15, 2023, law enforcement officers arrested McIntosh, Pettway and Abner. Officers also searched Abner’s residence and two other residences in Nitro. Officers seized approximately 3.5 grams of suspected fentanyl at Abner’s residence. Officers found additional amounts of methamphetamine and fentanyl and 11 firearms and ammunition at the second Nitro residence. Pettway admitted to possessing the firearms and to intending to sell the methamphetamine and fentanyl seized at that residence. Officers seized approximately 206 grams of methamphetamine and a Ruger LCP .380-caliber pistol and ammunition at the third Nitro residence. McIntosh admitted that he and others used that residence to store and distribute methamphetamine and fentanyl.
McIntosh and Pettway are scheduled to be sentenced on June 3, 2024, and Abner is scheduled to be sentenced on May 28, 2024. Each faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
McIntosh, Pettway and Abner are among 27 individuals indicted in a 53-count indictment that charges the defendants with distributing methamphetamine and fentanyl transported from Detroit, Michigan, in Huntington and other locations within the Southern District of West Virginia. Three other defendants have pleaded guilty. The indictment against the remaining defendants is pending. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff’s Department, the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspection Service. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
United States District Judge Robert C. Chambers presided over the hearings. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor are prosecuting the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-180.
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Three Members of Drug Trafficking Organization Found with over 400 Pounds of MethamphetamineRead the Press Release
NASHVILLE – A joint investigation by the U.S. Department of Homeland Security - Homeland Security Investigations and the Wilson County Sheriff’s Office has resulted in the arrest of three individuals for conspiring to distribute over 400 pounds of methamphetamine in Nashville, Tennessee, announced United States Attorney Henry C. Leventis.
The complaint charges Zachery Manier, 49, Danny Ray Jones, Jr., 48, and Reginald Levon Cooper, 40, with conspiracy to possess with intent to distribute over 500 grams of a mixture or substance containing methamphetamine.
During the investigation, agents learned that a target Drug Trafficking Organization (“DTO”) was using the U.S. Postal Service to ship drugs to various residences in the Middle District of Tennessee. As part of the investigation, on January 24, 2024, law enforcement officers executed a search warrant at a Nashville residence believed to be a stash house for the DTO, where agents recovered over 400 pounds of methamphetamine. Manier, Jones, and Cooper were arrested at the residence.
This case was investigated by the Department of Homeland Security - Homeland Security Investigations and the Wilson County Sheriff’s Office with substantial assistance provided by the Drug Enforcement Administration, United States Postal Inspection Service, and the Tennessee Bureau of Investigation. Assistant U.S. Attorneys Brooke Farzad and Mitchell Galloway are prosecuting the case.
A Criminal Complaint is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Three Individuals Charged for Roles in $1.89B Cryptocurrency Fraud SchemeRead the Press Release
The Justice Department today announced charges against two individuals and the guilty plea of a third individual for orchestrating a $1.89 billion cryptocurrency fraud scheme.
Sam Lee, 35, an Australian citizen residing in Dubai, United Arab Emirates, was charged in an indictment unsealed today for allegedly co-founding HyperFund, also known as HyperTech, HyperCapital, HyperVerse, and HyperNation. Rodney Burton, 54, of Miami, and Brenda Chunga, 43, of Severna Park, Maryland, were promotors of HyperFund.
“The defendants are charged with defrauding investors to the tune of $1.89 billion. As alleged in court documents, the defendants falsely represented that investors would receive substantial returns paid from cryptocurrency mining operations, which did not in fact exist,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “With our partners in Homeland Security Investigations and IRS Criminal Investigation, we are committed to uncovering sophisticated frauds involving cryptocurrency and digital assets and bringing those who perpetrate them to justice.”
“The level of alleged fraud here is staggering,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Whether it’s cryptocurrency fraud, or any other financial frauds, if it sounds too good to be true, it probably is. This office and our law enforcement partners will hold perpetrators accountable for these and other fraud schemes.”
According to court documents, from June 2020 to November 2022, Lee and his co-conspirators allegedly offered and sold investment contracts to the public through HyperFund’s online investment platform. HyperFund’s promotional materials allegedly made various false claims, including that investors who purchased HyperFund “memberships” would receive between 0.5% to 1% daily in passive rewards until the company either doubled or tripled the investor’s initial investment. To convince investors that HyperFund could make such payments, HyperFund allegedly claimed that its payments would be disbursed in part from its revenues from large-scale crypto mining operations, when in truth, HyperFund did not have such operations. Beginning in at least July 2021, HyperFund allegedly began to block investor withdrawals.
“Today’s charges are a testament to the incredible work of HSI New York’s El Dorado Task Force,” said Acting Special Agent in Charge Erin Keegan of Homeland Security Investigations (HSI) New York. “I commend our law enforcement partners, including those at HSI Baltimore, for their outstanding collaboration. HSI will continue to protect American investors from financial predators.”
“The illegal activity alleged in this case is precisely the type of conduct IRS Criminal Investigation and our law enforcement partners are committed to deterring,” said Acting Special Agent in Charge David Meisenheimer of the IRS Criminal Investigation (IRS:CI) Washington, D.C. Field Office. “These charges send a clear message that we have the tools and internal fortitude to protect our financial systems by diligently investigating, prosecuting, and holding accountable those who seek to defraud the American public.”
Lee is charged with one count of conspiracy to commit securities fraud and wire fraud. If convicted, he faces a maximum penalty of five years in prison. Burton is charged by criminal complaint with one count of conspiracy to operate an unlicensed money transmitting business and one count of operating an unlicensed money transmitting business. He also faces a maximum penalty of five years in prison on each count. Chunga pleaded guilty today to one count of conspiracy to commit securities fraud and wire fraud. She is scheduled to be sentenced on May 1 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI New York’s El Dorado Task Force and IRS:CI are investigating the case.
Trial Attorney Tian Huang of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Aaron S.J. Zelinsky and Spencer Todd for the District of Maryland are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Individuals Charged in $1.89 Billion Cryptocurrency Fraud SchemeRead the Press Release
Baltimore, Maryland – Three individuals are charged in U.S. District Court in Maryland for orchestrating a $1.89 billion cryptocurrency fraud scheme.
A federal grand jury has returned an indictment charging Sam Lee, age 35, an Australian citizen residing in the United Arab Emirates for allegedly co-founding HyperFund, also known as HyperTech, HyperCapital, HyperVerse, and HyperNation. The indictment was returned on January 25, 2024, and unsealed today. Co-conspirator Rodney Burton, a/k/a “Bitcoin Rodney,” 54, of Miami, Florida, is charged by criminal complaint for his role as an alleged promoter of HyperFund. Co-conspirator Brenda Chunga, 43, of Severna Park, Maryland, pleaded guilty today to her role in the fraud scheme.
The federal charges were announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Acting Special Agent in Charge Erin Keegan of Homeland Security Investigations (“HSI”) New York; and Acting Special Agent in Charge David Meisenheimer of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), Washington, D.C. Field Office.
“The level of alleged fraud here is staggering,” said U.S. Attorney Erek L. Barron. “Whether it’s cryptocurrency fraud, or any other financial frauds, if it sounds too good to be true, it probably is. This office and our law enforcement partners will hold perpetrators accountable for these and other fraud schemes.”
“The defendants are charged with defrauding investors to the tune of $1.89 billion. As alleged in court documents, the defendants falsely represented that investors would receive substantial returns paid from cryptocurrency mining operations, which did not in fact exist,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “With our partners in Homeland Security Investigations and IRS Criminal Investigation, we are committed to uncovering sophisticated frauds involving cryptocurrency and digital assets and bringing those who perpetrate them to justice.”
“Today’s charges are a testament to the incredible work of HSI New York’s El Dorado Task Force,” said Acting Special Agent in Charge Erin Keegan of Homeland Security Investigations (HSI) New York. “I commend our law enforcement partners, including those at HSI Baltimore, for their outstanding collaboration. HSI will continue to protect American investors from financial predators.”
“The illegal activity alleged in this case is precisely the type of conduct IRS Criminal Investigation and our law enforcement partners are committed to deterring,” said David Meisenheimer, Acting Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Washington, D.C. Field Office. “These charges send a clear message that we have the tools and internal fortitude, to protect our financial systems by diligently investigating, prosecuting, and holding accountable, those who seek to defraud the American public.”
According to court documents, from June 2020 to November 2022, Lee and his co-conspirators allegedly offered and sold investment contracts to the public through HyperFund’s online investment platform. HyperFund’s promotional materials allegedly made various false claims, including that investors who purchased HyperFund “memberships” would receive between 0.5% to 1% daily in passive rewards until the company either doubled or tripled the investor’s initial investment. To convince investors that HyperFund could make such payments, HyperFund allegedly claimed that its payments would be disbursed in part from its revenues from large-scale crypto mining operations, when in truth, HyperFund did not have such operations. Beginning in at least July 2021, HyperFund allegedly began to block investor withdrawals.
If convicted, Lee faces a maximum sentence of five years in federal prison for conspiracy to commit securities fraud and wire fraud. Burton has been arrested on a criminal complaint charging him with one count of conspiracy to operate an unlicensed money transmitting business and one count of operating an unlicensed money transmitting business. At a detention hearing today before U.S. Magistrate Judge Erin Aslan in U.S. District Court in Baltimore, Maryland, Burton was ordered to be detained. If convicted, he also faces a maximum penalty of five years in prison on each of those counts.
Brenda Chunga, a/k/a “Bitcoin Beautee,”pleaded guilty today to conspiracy to commit securities fraud and wire fraud, for her role as a promoter of HyperFund. According to her plea agreement and other court documents, Chunga conducted online investor meetings, including in Maryland, to promote HyperFund’s investment programs and which detailed the purported returns that prospective investors could earn from investing in HyperFund. Chunga admitted that she personally received at least $3 million in fraud proceeds from her participation in the conspiracy. As detailed in her plea agreement, Chunga will be required to pay restitution in the full amount of the victims’ losses, which the parties agree is at least $3 million, but could be significantly higher. Chunga faces a maximum penalty of five years in prison. U.S. District Judge Richard D. Bennett has not yet scheduled a sentencing date.
Neither an indictment nor a criminal complaint is a finding of guilt. An individual charged by indictment or criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
United States Attorney Erek L. Barron commended HSI New York’s El Dorado Task Force and IRS-CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Spencer Todd, and Trial Attorney Tian Huang of the Criminal Division’s Fraud Section who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Tama Man Sentenced to Nearly Four Years in Prison for Stabbing His BrotherRead the Press Release
A Tama man who stabbed his brother 10 times was sentenced today to nearly four years in federal prison.
Victor Arquis Garcia, age 26, from Tama, Iowa, received the prison term after an August 9, 2023, guilty plea to assault causing serious bodily injury.
Evidence at the plea hearing and sentencing showed that in November 2022, Garcia and his brother were drinking at their residence in Tama, Iowa, when the two became intoxicated. A fight broke out between the two and Garcia retrieved a knife from the kitchen. As the two continued to fight, Garcia stabbed his brother ten times resulting in injuries to the brother’s leg, armpit, and stomach. The victim’s injuries required surgery to repair. Garcia has a long criminal history including 14 prior criminal convictions.
Garcia was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Garcia was sentenced to 45 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Meskwaki Nation Police Department and the FBI.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-11.
Follow us on Twitter @USAO_NDIA.
Stash House Operator Sentenced for Human Smuggling Charges in Del RioRead the Press Release
DEL RIO, Texas – A California woman was sentenced in a federal court in Del Rio to 76 months in prison for her role as a stash house operator and facilitator for a human smuggling organization (HSO).
According to court documents Veronica Pech, 57, of Ridgecrest, California, operated several stash houses in Del Rio and facilitated the harboring and transport of undocumented noncitizens. Pech had organized pickups from the brush of many migrants, harbored them at her stash houses, and ultimately arranged for them to be transported into the interior of the U.S. From Jan. 1, 2021, through March 30, 2021, Pech harbored approximately 500 undocumented noncitizens.
As a leader and organizer, Pech was also responsible for the finances of the HSO’s harboring operation in Del Rio, paying the rent of a stash house, paying guides and load drivers, paying for the migrants’ food and drinks, and ensuring funds were appropriated and sent to the organization’s upper leadership.
On March 30, 2021, U.S. Border Patrol agents arrested Pech and apprehended 35 undocumented migrants she was harboring at her main stash house. She pleaded guilty in November 2021 to one count of conspiracy to harbor illegal aliens. In addition to the imprisonment, Pech was ordered to pay a $5,000 fine.
Co-defendant Dakota Leon, 31, who operated as a load driver for the HSO, was sentenced in March 2023 to 46 months for conspiracy to transport aliens.
"Pech ran multiple stash houses and played many key roles in the operation of the organization that, in just three months, smuggled more than 500 migrants through Del Rio.” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Special thanks to the U.S. Border Patrol criminal investigators for disrupting and dismantling a major human smuggling organization operating from Del Rio to Comanche."
“Not only did these human smugglers conspire to undermine our nation’s immigration laws multiple times for their own profit, but they did so by thinking they would get away with their actions,” said Special Agent in Charge Craig Larrabee for the HSI San Antonio Division. “Thanks to the outstanding teamwork between HSI and BP, these smugglers will be spending the next several years behind bars.”
“Consequences are necessary to combat transnational criminal organizations,” said Chief Patrol Agent Robert Danley for the U.S. Border Patrol Del Rio Sector. “I am proud of how our strong law enforcement partnerships made this success possible and brought justice for our community.”
HSI and USBP investigated the case.
Assistant U.S. Attorney Brett Miner prosecuted the case.
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Spartanburg Man Sentenced to Federal Prison for Trafficking Marijuana Through Greenville Spartanburg AirportRead the Press Release
GREENVILLE, S.C. — Raquentin Kendrick Gray-Miller, 34, of Spartanburg, was sentenced to two years in federal prison after pleading guilty to possession with intent to distribute marijuana and conspiracy.
Evidence presented to the court showed that on Jan. 25, 2022, Gray-Miller and another man flew into Greenville Spartanburg International Airport with suitcases containing approximately 50 pounds of marijuana. The traffickers loaded the marijuana into a coconspirator’s vehicle and drove into a parking garage beside the terminal. While attempting to transfer some of the marijuana into another vehicle, two men drove up and attempted to rob the traffickers at gunpoint. A gunfight broke out in the parking garage between two of Gray-Miller’s coconspirators and the robbers. Dozens of shots were fired and one of the traffickers was severely injured before the robbers fled in their car.
United States District Judge Henry M. Herlong sentenced Gray-Miller to 24 months imprisonment, to be followed by a two-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the FBI Columbia Field Office, the Spartanburg County Sheriff’s Office, and the GSP Airport Police. Assistant U.S. Attorney Chris Schoen is prosecuting the case.
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Sioux City Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty January 26, 2024, in federal court in Sioux City.
Kenneth Dawdy, 39, from Sioux City, was convicted of conspiracy to distribute methamphetamine.
At the plea hearing, Dawdy admitted his participation in a conspiracy from January 2021 through June 2023 that distributed at least 3500 grams of methamphetamine in the Sioux City area. Dawdy also admitted to being a “middle-man,” assisting others in the conspiracy by acquiring and delivering money and methamphetamine to others.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Dawdy was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Dawdy faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, and at least three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-4055.
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Sex Offender Previously Convicted of Child Rape Pleads Guilty to Child Pornography OffenseRead the Press Release
BOSTON – A lifetime Level 2 sex offender, pleaded guilty today to possessing child sexual abuse material (CSAM).
Eric Robert Johnson, 50, of Billerica, pleaded guilty to one count of possession of child pornography. U.S. District Court Judge Denise J. Casper scheduled sentencing for May 2, 2024. Johnson was arrested and charged by criminal complaint in February 2022 and subsequently indicted by a federal grand jury in March 2022. He has remained in federal custody since his arrest.
“Possession of child pornography is not a victimless crime because it further victimizes the innocent children who were abused to create these horrific images and drives demand for the creation of more abusive material,” said Acting United States Attorney Joshua S. Levy. “Mr. Johnson, a lifetime sex offender previously convicted of child rape, possessed over 5,000 files showing the sexual abuse of children, including infants. He is clearly a danger to our communities, and now faces significant time in federal prison. Our office will continue to relentlessly pursue individuals who harm children.”
“Images of children being sexually abused aren’t just documenting a moment in time. They’re a window into the horrific, ongoing reality for many of these kids. Sex offenders like Eric Robert Johnson who collect this material perpetuate the demand for it, which means more children will be exploited,” said Jodi Cohen Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “It’s imperative for the FBI and our law enforcement partners to intercept such predators when we find them, and we’re grateful Mr. Johnson accepted responsibility today for his criminal conduct.”
Searches of Johnson’s person and residence in February and March of 2022 resulted in the recovery of 25 electronic devices including a laptop, hard drives and other electronic devices. Multiple hard drives were found hidden next to Johnson’s bed as well as in Johnson’s basement ceiling, shelves, cabinets and in an ammunition can located in a crawl space at the residence. At the time of the search, the laptop was running a program to wipe, delete or remove files from an attached hard drive and was approximately 56% complete before being disabled by an on-scene forensic examiner.
A subsequent forensic examination revealed over 5,000 files depicting CSAM on seven of the seized devices, including images and video files depicting the sexual abuse of minor victims as young as infants and toddlers. Further forensic examination determined that 15 of the seized devices were encrypted or had hardware and could not be searched.
Additionally, during the search of Johnson’s residence, at least three mutilated dolls with the vaginal region sliced to make a hole were seized. Two children’s backpacks containing various children’s clothing including bathing suits and a nightgown, were found under his bed, along with a bag of children’s costumes. Additionally, children’s diapers were also observed throughout the residence.
Johnson was previously convicted in 1992 on state charges in New Hampshire of two counts of Aggravated Felonious Sexual Assault of a Child Under 13 Years of Age. At the time of the searches, Johnson was a Level 1 registered sex offender in the Commonwealth of Massachusetts. Per the Massachusetts Sex Offender Registry Board, Johnson is currently a Level 2 registered sex offender.
The charge of possession of child pornography after a prior conviction for a sex offense provides for a mandatory minimum sentence of 10 years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Levy, FBI SAC Cohen and Billerica Police Chief Roy Frost made the announcement today. Assistant U.S. Attorneys Suzanne Sullivan Jacobus, Luke A. Goldworm and J. Mackenzie Duane of the Criminal Division are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
San Fernando Valley Man Sentenced to 2½ Years in Prison for Selling Used and Counterfeit Medical Devices Used for Skin TreatmentRead the Press Release
LOS ANGELES – A Tarzana man was sentenced today to 30 months in federal prison for running a nearly $6 million scheme in which he knowingly sold used skin-tightening medical devices that were deliberately misbranded as new, as well as counterfeit devices that he claimed were to be used with fat-reducing laser machines.
Kambiz Youabian, 50, was sentenced by United States District Judge Dale S. Fischer, who also ordered him to pay $5,937,049 in restitution and ordered the forfeiture of $1,685,396 in seized assets.
Youabian pleaded guilty in January 2023 to one count of mail fraud and one count of introducing a misbranded medical device into interstate commerce.
Youabian owned and operated MSY Technologies Inc., a West Los Angeles-based company that did business under the names “Thermagen” and “Global Electronic Supplies” (GES).
From March 2016 to June 2022, Youabian purchased used transducers, which are medical devices used to tighten the skin of dermatology patients by delivering ultrasound energy to a patient’s skin. Used properly, transducers are designed to provide no more than 2,400 treatments. After this number is reached, the devices are considered depleted and should be disposed of in accordance with health code regulations.
Through GES, Youabian purchased depleted transducers for nominal sums, typically $50. Youabian then remanufactured the depleted transducers and added fabricated serial numbers to make the transducers appear to be new.
Then, through his Thermagen company, Youabian fraudulently marketed and sold – for many times more than he paid for them – the remanufactured transducers to health care providers and customers as “new” transducers with 2,400 remaining treatments. To conceal his connection to Thermagen, Youabian used names of fabricated Thermagen employees on correspondences with victim providers and used out-of-state commercial mailboxes for Thermagen’s return of address on shipments, which he sent through the U.S mail.
For example, in February 2020, Youabian, through Thermagen’s website, sold a device falsely advertised as “new” and “containing 2,400 lines” – and with a retail price of $1,695 – to a buyer. Youabian then shipped the device – which contained a fake serial number – from Los Angeles to Florida via the United States Postal Service.
Youabian also shipped counterfeit PAC keys, medical devices used to operate laser machines designed to reduce fat on patients, through the mail.
He then transferred his ill-gotten gains to bank account his controlled, including accounts he opened in the names of MSY Technologies, himself, and his au pair.
In June 2022, law enforcement executed search warrants at Youabian’s home and the GES-Thermagen office in West Los Angeles. In the GES-Thermagen office, law enforcement seized 75 transducers in various states of refurbishment, a manufacturing workstation containing tools and transducer parts, and detailed records of GES and Thermagen’s expenses.
Youabian unlawfully sold thousands of medical devices, including transducers and PAC keys, and receiving at least $5,821,474 in fraudulent proceeds that should have been paid to the companies that are the sole U.S. distributors for these devices. Youabian also caused reputational harm to the device manufacturers and distributors of these medical devices.
The U.S. Food and Drug Administration Office of Criminal Investigations and the United States Postal Inspection Service investigated this matter.
Assistant United States Attorney Daniel G. Boyle of the Environmental Crimes and Consumer Protection Section prosecuted this case.
Sacramento Woman Pleads Guilty to Fentanyl DistributionRead the Press Release
SACRAMENTO, Calif. — Sofia Cisneros-Noyola, 39, of Sacramento, pleaded guilty today to possession of fentanyl with intent to distribute, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2020, a team of local and federal law enforcement officers partnered in an investigation into the drug trafficking activities of Cisneros-Noyola and her co‑defendants Esmerelda Ceja-Mendez, 43, of Ceres; Julian Loeza, 33, of Ceres; and Victor Ramirez, 37, of Atwater. On Dec. 2, 2020, law enforcement agents stopped Cisneros-Noyola while she was en route from Modesto to a location where she had arranged to conduct a narcotics transaction. Agents searched the vehicle and seized 20,000 counterfeit oxycontin M-30 pills weighing more than 2 kilograms from under the front passenger seat.
This case is the product of an investigation by the Federal Bureau of Investigation and the San Joaquin County Metropolitan Narcotics Task Force. Assistant U.S. Attorneys Antonio J. Pataca, Sam Stefanki, and Audrey Hemesath are prosecuting the case.
Cisneros-Noyola is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on June 24, 2024. Cisneros-Noyola faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi‑agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Rock Hill Man Sentenced to Federal Prison for Drug ConspiracyRead the Press Release
COLUMBIA, S.C. — Archie Arsenio Caldwell 35, of Rock Hill, was sentenced to more than 16 years in federal prison after pleading guilty to conspiracy to distribute cocaine, crack cocaine, methamphetamine, fentanyl, and marijuana. He also plead guilty to distributing crack cocaine and money laundering.
Evidence presented to the court showed that the FBI Columbia Field Office and the York County Multijurisdictional Drug Enforcement Unit began to investigate a group of defendants who were obtaining large amounts of cocaine, methamphetamine, heroin, and marijuana from a distributor in Southern California. Based upon their investigation, the police were able to determine that members of the group were flying to California and having the drugs shipped back to the Rock Hill and Charlotte area. Based upon surveillance and other law enforcement techniques, the police learned that Caldwell was a member of the group and helped other members obtain flights to California to purchase the illegal substances. Caldwell also flew to California to purchase the illegal substances for other members of the group and orchestrated shipping the packages back. After the drugs were shipped back to South Carolina, the group distributed the drugs to local dealers.
Later, the group began ordering fentanyl from California which they used to make fentanyl laced pills which were sold to users in Rock Hill, Greenville, Myrtle Beach, Charlotte, and Atlanta. Based upon their investigation, law enforcement could show that this group shipped more than 255 packages from California. Caldwell was held responsible for 37 grams of crack cocaine, six kilograms of methamphetamine, 27 kilograms of cocaine, seven kilograms of fentanyl and eight kilograms of marijuana. Nineteen defendants were charged in this case in South Carolina. Seventeen defendants pled guilty, including Caldwell, to their involvement and three were convicted at trial.
United States District Judge Mary Geiger Lewis sentenced Caldwell to 200 months imprisonment, to be followed by a 10-year term of court-ordered supervision. There is no parole in the federal system.
This law enforcement operation and 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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the FBI Columbia Field Office, York County Multijurisdictional Drug Enforcement Unit, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Internal Revenue Service, and Richland County Sheriff’s Department. Assistant United States Attorney William K. Witherspoon prosecuted the case.
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