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6 March 2024
Dual U.S. and Greek National Arrested for Multimillion-Dollar Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A dual U.S. and Greek national was charged for a multimillion-dollar bank fraud conspiracy, U.S. Attorney Philip R. Sellinger announced today.
Dino Koutsogiannis, 57, of Fairview, New Jersey, is charged by complaint with one count of conspiracy to commit bank fraud. Koutsogiannis made his initial appearance on March 4, 2024, before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
From July 2022 to July 2023, Koutsogiannis and others conspired to defraud multiple financial institutions by conducting a “bust-out” debit card conspiracy. As part of the scheme, Koustogiannis and his conspirators would create shell companies and open bank accounts in those companies’ names. Koustogiannis and the conspirators would then fund those accounts with nominal funds. Then, after a few months with no activity, Koutsogiannis and the conspirators would fund the accounts via transfers from external sources, including accounts controlled by Koustogiannis and the conspirators. Several weeks later, Koutsogiannis and the conspirators would make very large debit purchases over the course of several days from those accounts, causing those accounts to accrue significantly negative balances, frequently in the amount of hundreds of thousands of dollars.
After the bust-out was complete and the accounts were left in significant negative balances, the victim financial institutions would then close the accounts. But Koutsogiannis and his conspirators would nevertheless continue executing the scheme with bank accounts at other financial institutions. Koustigannis and the conspirators executed this scheme numerous times at six victim financial institutions between July 2022 and July 2023, causing those institutions approximately $2.8 million in losses.
The charge carries a maximum penalty of 30 years and a fine of up to $1 million.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the charges. He also thanked the Springfield Police Department, the Teaneck Police Department, and the New Jersey State Police.
The government is represented by Assistant U.S. Attorney Chana Y. Zuckier of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
koutsogiannis.complaint.pdfDriver Who Crashed During a Police Chase Gets 12 Year Prison SentenceRead the Press Release
WASHINGTON – Shaquille Taylor, 28, of Washington, D.C., was sentenced to 12 years in prison, yesterday, for causing near-fatal injuries to another motorist in May 2022, announced U.S. Attorney Matthew M. Graves, Special Agent in Charge Michael Buck of the U.S. Secret Service Uniformed Division (USSS), and Chief Pamela Smith of the Metropolitan Police Department (MPD).
A Superior Court jury convicted Taylor, in November 2023, of aggravated assault while armed, assault with a dangerous weapon, fleeing a law enforcement officer, and destruction of property. According to the government’s evidence, a USSS officer had initiated a traffic stop of Taylor, near 17th Street and Massachusetts Avenue NW, at approximately 2:00 AM on May 6, 2022. Taylor had initially complied with the stop and started to get out of his car, but then got back in the car and drove off at a high rate of speed. As he did so, Taylor ran a red light at 12th Street and Massachusetts Avenue, NW, travelling just under 100 MPH, and crashed into the victim’s car. As a result of the crash, the victim sustained near-fatal injuries and spent weeks on a ventilator. As a result, the victim will suffer chronic pain for the rest of his life. Taylor sustained a broken arm and leg. Police officers later recovered a firearm from Taylor’s car.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Buck, and Chief Smith commended the work of those who investigated the case from the United States Secret Service Uniformed Division and the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Antoinette Sakamsa, Supervisory Paralegal Specialist Renee Prather, Victim Witness Service Coordinator Maenylie Watson, Victim Witness Program Specialist Lakeisha McFall, Supervisory IT Specialist Leif Hickling, and Assistant U.S. Attorneys Kathleen Houck and Jamie Carter who assisted with the investigation of the matter.
Finally, they commended the work of Assistant U.S. Attorneys Kathryn Bartz and Benjamin Helfand, who investigated and prosecuted the case.
Doctor Sentenced to Prison for Unlawful Drug Distribution, False Statements to Medicare, and Paycheck Protection Program FraudRead the Press Release
Tampa, FL – U.S. District Judge Charlene E. Honeywell today sentenced Tommy Louisville (71, Pembroke Pines) to one year and one day in federal prison for unlawful drug distribution, false statements relating to health care matters, and Paycheck Protection Program fraud. The court also ordered Louisville to pay restitution in the amount of $35,319.23 to the Small Business Administration and $8,466.56 to Medicare. Louisville entered a guilty plea on November 3, 2023.
According to court documents, Louisville was a Florida-licensed physician and Drug Enforcement Administration registrant. On May 30, 2019, the Florida Board of Medicine suspended Louisville from the practice of medicine for two years, thereby making him ineligible to lawfully prescribe controlled substances. Louisville continued to issue controlled-substance prescriptions after his medical license was suspended. Furthermore, he concealed the fact that he was not authorized to issue prescriptions from Medicare in connection with the submission to Medicare of the prescriptions for payment. Louisville eventually shuttered his medical business in November 2019.
Between April 2020 and May 2020, Louisville used his closed business to fraudulently obtain a federal Paycheck Protection Program (PPP) loan in the amount of $33,034. Louisville submitted an application that contained multiple fraudulent representations, including stating average monthly payroll suggesting he actively operated a medical business; stating he employed six employees; and certifying that loan proceeds would be used for business-related purposes.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
This case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General, the Drug Enforcement Administration (Tampa District Office), and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Greg Pizzo.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
District Man Pleads Guilty to Federal Firearms and Drug Trafficking OffensesRead the Press Release
WASHINGTON – Christopher Norece Mitchell, 25, of Washington, D.C., pleaded guilty today to federal firearms and drug trafficking offenses stemming from his possession of three loaded firearms and distributable quantities of narcotics on April 20, 2023, in the Chinatown neighborhood of Northwest Washington, announced U.S. Attorney Matthew M. Graves; Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Mitchell pleaded guilty in the U.S. District Court for the District of Columbia to one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year and one count of possession with intent to distribute N,N-Dimethylpentylone, a Schedule I controlled substance. The Honorable Jia M. Cobb scheduled sentencing for July 9, 2024.
According to plea documents, in the early afternoon hours of April 20, 2023, members of the Metropolitan Police Department approached a group of men who were loitering on private property in the District’s Chinatown neighborhood. As the men left the area, one took a black plastic bag off a fence post and threw it into a public trash can. The officers recovered the bag, which contained a distributable quantity of marijuana, a digital scale, empty plastic bags consistent drug distribution, and a key for a nearby SUV. Minutes later, Mitchell arrived on scene and claimed the SUV belonged to his mother. Mitchell consented to a search of his person, which yielded almost $4,000 in U.S. currency and distributable quantities of drugs that were later determined to include fentanyl and the synthetic stimulant N,N-Dimethylpentylone. Officers also searched the SUV and recovered additional N,N-Dimethylpentylone among other drugs, along with additional scales. Officers also recovered three loaded Glock firearms and additional ammunition. Subsequent DNA testing and analysis tied Mitchell to the firearms.
On May 18, 2023, a federal grand jury indicted Mitchell on firearms and drug trafficking offenses. Mitchell was arrested on May 19, 2023, and has remained in custody since.
Federal law prohibits Mitchell from possessing a firearm because he previously was convicted in the Superior Court of the District of Columbia for crimes punishable by imprisonment for a term exceeding one year.
Mitchell faces a maximum sentence of 15 years in prison and a $250,000 fine on the firearms count and a maximum sentence of 30 years in prison and up to a $2,000,000 fine on the drug trafficking count. The maximum potential sentences in this case are prescribed by Congress and is provided here for informational purposes only, as any sentence imposed in this case will be determined by the Court after considering the United States Sentencing Guidelines and other statutory factors.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Police Department as part of Project Safe Neighborhoods. Valuable assistance was provided by the Drug Enforcement Administration Mid-Atlantic Laboratory and the Federal Bureau of Investigation Laboratory in Quantico, Virginia.
The case was indicted by former Special Assistant U.S. Attorney Rick Kelley and is being prosecuted by Assistant U.S. Attorney Paul V. Courtney.
District Man Found Guilty in the Kidnapping and Multiple Rapes of a Maryland Woman, a Total StrangerRead the Press Release
WASHINGTON – Mark A. Blue, 34, of Washington, D.C., was found guilty today in the December 2018 kidnapping, robbery, and multiple rapes of a total stranger. The jury verdict in U.S. District Court for the District of Columbia was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office’s Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department.
The jury found Blue guilty of kidnapping, conspiracy to commit kidnapping, kidnapping while armed, robbery while armed, and two counts of first degree sexual abuse while armed. The Honorable Carl J. Nichols, who presided over the case, scheduled sentencing for June 14, 2024. This conviction carries a maximum penalty of life imprisonment.
According to court documents, Blue, along with a co-conspirator, targeted the victim, who was walking home from a bus stop in Prince Georges County, MD. Blue stripped her naked, robbed her, forced her into a car, threatened to kill her, covered her eyes with her shirt so she would not be able to see, and sexually assaulted her in Maryland. Then Blue drove her to Southeast Washington, D.C., where he forced her to disclose her ATM information. His co-conspirator drained her bank account of nearly everything as Blue assaulted her again. Blue drove the victim to an alley where both men sexually assaulted her yet again. They left her naked in an alley, with her shirt covering her head.
At the time of the attack, Blue was under supervised release for a 2013 armed robbery conviction. Elements of the crime were captured by surveillance footage and ATM cameras. Two days after the offenses, on December 5, 2018, Blue quit his job and fled to North Carolina. A tipster, who recognized Blue’s mugshot on a television news show, called law enforcement. The tipster stated that Blue had said he was wanted by police for robbing and kidnapping a girl.
Blue was arrested on January 29, 2019, in North Carolina and has remained in custody since his arrest.
This case was investigated by the FBI Washington Field Office's Violent Crimes Task Force, the Metropolitan Police Department, and the Prince Georges County Police Department. It was prosecuted by Assistant U.S. Attorneys Caroline Burrell, Rachel Forman, and Paralegal Specialist Alexis Spencer-Anderson of the District of Columbia. The prosecution team received valuable assistance from Veronica Vaughn of the Victim Witness Assistance Unit, as well as Assistant U.S. Attorneys Stuart Allen, Nicholas Miranda, and Jessica Wash.
District Man Charged with First-Degree Murder for Killing a Teenager on the MetroRead the Press Release
WASHINGTON- Keith Williams, 23, of the District of Columbia, was indicted today on the charge of first-degree murder while armed for the shooting death of 17-year-old Brendan Ofori, on board a green line Metro rail car, announced U.S. Attorney Matthew M. Graves. The Honorable Michael O’Keefe ordered that Williams be held without bond pending trial.
According to the indictment, on May 28, 2023, Williams and the victim were both traveling on the Metro rail system separately. Surveillance video captured the victim get on a southbound Green Line train at the West Hyattsville Metro Station. The defendant was captured entering the Stadium Armory Metro Station and transferring to a Green Line train at L’Enfant Plaza Metro Station. At approximately 11:40 a.m., while both were on the same train traveling to the Waterfront station, Williams shot the victim multiple times following an altercation between the two. The victim was found to be unresponsive by emergency personnel and pronounced dead a short time later.
This case is being investigated by the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney John Interrante.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Departments of Justice, Commerce and Treasury Issue Joint Advisory on Compliance of Foreign-Based Persons with Sanctions and Export LawsRead the Press Release
The Department of Justice, Department of Commerce’s Bureau of Industry and Security (BIS), and the Department of the Treasury’s Office of Foreign Assets Control (OFAC) today issued a joint compliance note focusing on the obligations foreign-based individuals and entities have to comply with U.S. sanctions and export control laws and the risks of exposure that they face for non-compliance. Today’s note marks the third collective effort by the three agencies to inform the private sector about enforcement trends and provide guidance to the business community on compliance with U.S. sanctions and export laws. All three agencies also joined three other multi-seal advisories in the past year.
“Any person or company participating in the global marketplace has an obligation to comply with our sanctions and export control laws, regardless of where they are located,” said Assistant Attorney General for National Security Matthew G. Olsen. “Today’s advisory makes clear that the global business community must ensure that they are educated about how these laws apply and take steps to mitigate any risks they may face as a result of their business operations.”
“As today’s compliance note makes clear, it doesn’t matter where in the world you’re located – if you’re dealing in items subject to the EAR, you must comply with U.S. export controls,” said Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement. “Failure to do so may risk you being the subject of an administrative or criminal enforcement action.”
The compliance note highlights the applicability of U.S. sanctions and export control laws to persons and entities located abroad and describes the enforcement mechanisms available to hold violators accountable, including civil enforcement actions and criminal prosecutions. In addition, the note provides an overview of compliance considerations for non-U.S. companies and compliance measures that could potentially help mitigate their risk.
“OFAC will continue to actively enforce our sanctions against those who violate them, whether in the United States or abroad.” said Director Bradley T. Smith of the Department of the Treasury’s Office of Foreign Assets Control. “As underscored by today’s advisory, foreign persons should be vigilant in understanding their OFAC-administered sanctions obligations and take steps necessary to comply.”
As with prior multi-agency advisories, the compliance note underscores the importance of an effective and robust compliance program to mitigate any risks of non-compliance that they may face in today’s global business environment. This is especially true for foreign companies who do business with both the United States and jurisdictions, people, or entities who are subject to restrictions under U.S. sanctions or export control laws.
The full compliance note is available hereDayton man sentenced to prison for possessing stolen mailRead the Press Release
DAYTON, Ohio – Jayon Everett Perrin, 22, of Dayton, was sentenced in U.S. District Court to 32 months in prison for unlawfully possessing stolen mail.
According to court documents, in October 2022, law enforcement executed a search warrant at Perrin’s Dayton apartment and discovered a postal service key, a United States Postal Service logo jacket, $6,000 in cash, more than 500 checks, and approximately 15 debit or credit cards.
The checks had payable amounts ranging from approximately 50 cents to $282,000. The stolen mail also included sensitive forms and documents, such as a federal tax return, payment slips for medical and dental bills, and a loan-forgiveness application.
Perrin also possessed equipment and supplies for cloning debit and credit cards and altering stolen checks.
Perrin was charged federally in October 2022 and pleaded guilty in September 2023.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, announced the sentence imposed on March 5 by Senior U.S. District Court Judge Walter H. Rice. Assistant United States Attorneys Rob Painter and Elizabeth L. McCormick are representing the United States in this case.
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Corinth man sentenced to 30 years for producing and distributing child pornographyRead the Press Release
GREENVILLE, Miss. – A Corinth, Mississippi man was sentenced in federal court today to 30 years in prison for producing sexually explicit images with minors and posting them on the dark web.
According to court documents, Paul Burk, III, 36, recorded child sexual abuse videos using minors under the age of 10 years old and posted them on forums on the dark web. The victims were identified through Operation Rescue Me, a strategic partnership between the FBI and the National Center for Missing and Exploited Children, which focuses on determining the identity of child victims depicted in child exploitation material.
Following a sentencing hearing on Wednesday in Greenville, Chief U.S. District Judge Debra M. Brown ordered Burk to serve 360 months in prison, followed by a term of supervised release for the remainder of his life.
“The depraved conduct of this defendant inflicted horrific damage upon innocent lives, for which he was appropriately sentenced to the maximum possible penalty in this case,” said U.S. Attorney Clay Joyner. “Our office will always remain committed to protecting children from such abhorrent conduct, and we are proud of the partnership between the FBI, the Mississippi Attorney General’s Office, and our prosecutor who worked together to see justice done for the victims in this case.”
"Safeguarding our society's future begins with protecting the youth in our community from criminals like, Paul Burk III,” remarked FBI Assistant Special Agent in Charge Maher Dimachkie “Those who commit these heinous crimes against our youth will not be tolerated. The FBI maintains a commitment to support our DOJ partners in aggressively investigating and protecting the innocence of our minors, assuring offenders are brought to justice. "
“The suffering these children have endured is unimaginable,” stated Mississippi Attorney General Lynn Fitch. “I am grateful for our partners at the U.S. Attorney’s Office and FBI. Working together across agencies we were able to ensure justice is served here. We cannot give these children back what their abuser has taken from them, but we have at least started them on the road to healing.”
The FBI and the Mississippi Attorney General’s Office investigated the case. Assistant U.S. Attorney Parker S. King prosecuted the case.
Connecticut Dentist Sentenced to Prison for Tax EvasionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that BOULOS HANNA, also known as “Paul Hanna,” 66, of East Lyme, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 10 months of imprisonment, followed by three years of supervised release, for tax evasion. Judge Williams also ordered Hanna to pay a $25,000 fine in addition to his restitution obligation.
According to court documents and statements made in court, Hanna is the sole owner of Paul Hanna DMD PC, a dental practice in New London. Hanna takes fees from dental patients in the form personal checks, cash, and credit card payments. Hanna owns the building where his dental practice is located and the practice pays rent to Hanna individually.
For each of the 2000 through 2009 tax years, Hanna filed a Form 1040, U.S. Individual Income Tax Return for himself and his wife, and paid the tax due and owing for those years, typically by having withholdings during the year sufficient to cover his tax liability. For the 2010 through 2012 tax years, Hanna filed a Form 1040 for himself and his wife, but did not pay the tax due and owing. As a result, from approximately April 2012 through 2017, Hanna was subject to IRS collections enforcement for the 2010 through 2012 tax years, including forced collection activity, such as liens placed on property and seized payments taken by way of levy.
From 2013 through 2020, Hanna earned approximately $1.6 million in taxable income from his work as a dentist and from rental income. However, he failed to file tax returns for any of those years, resulting in a loss to the IRS of $244,541. In addition to failing to file personal federal income tax returns, Hanna attempted to evade the assessment of tax by paying himself “management fees” instead of a reasonable wage, operating in cash by self-endorsing business checks to himself and cashing these checks to keep money out of his personal bank accounts, and paying personal expenses directly from his business accounts without reflecting those payments as income.
Hanna is required to pay $244,541 in restitution.
Hanna pleaded guilty on July 17, 2023. He is required to report to prison on May 6.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Susan Wines.
Columbia Man, Woman Sentenced in $1.1 Million Insurance Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Two Columbia, Mo., residents were sentenced in federal court today for their roles in a $1.1 million insurance fraud scheme that involved false claims of injuries suffered in faked car accidents.
Michael Lee Gene Stapleton, 37, and Latoya Marie Brown, 37, were sentenced in separate appearances before U.S. District Judge Roseann Ketchmark. Stapleton was sentenced to four years and three months in federal prison without parole and ordered to pay $166,363 in restitution to his victims. Brown was sentenced to four years in federal prison without parole and ordered to pay $72,069 in restitution to her victims.
On April 6, 2023, Stapleton pleaded guilty to two counts of aiding and abetting mail fraud. On Feb. 14, 2023, Brown pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit mail fraud.
This case stems from a long investigation by the FBI into co-defendant Lawrence Courtney Lawhorn, 36, of Kansas City, Mo. (formerly of Columbia), for a series of automobile accidents throughout Missouri. All but one of those accidents were staged. The conspiracy defrauded six insurance companies of a total of $1,234,581 from June 2017 to July 2020.
Lawhorn recruited friends, acquittances, family, and friends of friends to participate in the staged accidents. Conspirators went to various medical providers, claiming injuries from the staged accidents and requesting various testing, such a MRIs, CT scans, and/or X-rays. Conspirators then submitted false claims to insurance companies that they had suffered bodily injuries and that they would be personally liable for any medical bills related to insurance claims. Conspirators, some of whom were involved in multiple incidents, received thousands of dollars, and in some cases tens of thousands of dollars, based on these false claims. However, none of the conspirators made any payments to medical providers and instead used the funds for their personal expenses.
Brown admitted she was involved in three incidents and received a total of $44,269 in insurance payments. Two of the accidents were in Boone County, Mo., and one of the accidents was in Kansas City, Mo.
Stapleton admitted that he and co-defendant Tara Colleen Jackson, 60, of Independence, Mo., who is Lawhorn’s mother, participated in a staged automobile accident in Kansas City, Mo. State Farm issued a $50,000 check to Stapleton and a $50,000 check to Jackson. None of the medical bills totaling $188,920 at Research Medical Center (where Stapleton was treated) and St. Luke’s East Hospital (where Jackson was treated) have been paid.
Stapleton and Brown are among 16 defendants who have been sentenced in this case.
Lawhorn pleaded guilty on June 8, 2023, to one count of conspiracy to commit wire fraud, one count of conspiracy to commit mail fraud, and one count of aggravated identity theft. Lawhorn also pleaded guilty in a separate and unrelated case to commit wire fraud. His sentencing date has not yet been scheduled.
Jackson pleaded guilty on April 6, 2023, to one count of conspiracy to commit wire fraud and one count of conspiracy to commit mail fraud and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Aaron M. Maness. It was investigated by the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cincinnati man sentenced to prison for submitting false PPP loan applicationRead the Press Release
CINCINNATI – A Cincinnati man was sentenced in U.S. District Court to 18 months in prison for committing wire fraud as part of a scheme to fraudulently obtain a Covid relief loan.
Kelton McClarrin, 33, received nearly $21,000 from the Paycheck Protection Program (PPP) under false pretenses and used the money for personal expenditures including jail commissary services, CashApp, Grubhub, DoorDash, Facebook purchases and hotels.
According to court documents, McClarrin applied for a Covid relief loan on May 16, 2021, falsely claiming in the application that he was the sole owner of a business named “Kelton McClarrin.” McClarrin claimed his business was established in 2019 and had a gross income of $100,000 for that year. McClarrin also submitted a forged bank statement in support of the loan application.
McClarrin was sentenced to two years in prison in a Hamilton County case on May 7, 2019. He remained incarcerated until Nov. 17, 2020, when he was paroled to a halfway house. He used the address of the halfway house as his business address on the loan application.
In April 2022, McClarrin applied for loan forgiveness for the $21,000 PPP loan. He stated on the application forms that he had 20 employees and had spent $20,000 of the loan on payroll costs.
McClarrin was arrested in August 2023 and pleaded guilty in October 2023.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the sentence imposed on March 5 by U.S. District Judge Douglas R. Cole. The case was investigated by the Social Security’s Office of Inspector General with assistance from the U.S. Department of Labor Office of Inspector General, the U.S. Marshals, and the Ohio Department of Rehabilitation and Corrections. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
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Chinese National Residing in California Arrested for Theft of Artificial Intelligence-Related Trade Secrets from GoogleRead the Press Release
View the indictment here.Watch U.S. Attorney Ramsey's video statement here.
A federal grand jury indicted Linwei Ding, aka Leon Ding, charging him with four counts of theft of trade secrets in connection with an alleged plan to steal from Google LLC (Google) proprietary information related to artificial intelligence (AI) technology. The announcement was made by Attorney General Merrick B. Garland this afternoon while participating in a “Fireside Chat” at the American Bar Association’s 39th National Institute on White Collar Crime in San Francisco.
According to the indictment, returned on March 5 and unsealed earlier today, Ding, 38, a national of the People’s Republic of China and resident of Newark, California, transferred sensitive Google trade secrets and other confidential information from Google’s network to his personal account while secretly affiliating himself with PRC-based companies in the AI industry. Ding was arrested earlier this morning in Newark.
“The Justice Department will not tolerate the theft of artificial intelligence and other advanced technologies that could put our national security at risk,” said Attorney General Garland. “In this case, we allege the defendant stole artificial intelligence-related trade secrets from Google while secretly working for two companies based in China. We will fiercely protect sensitive technologies developed in America from falling into the hands of those who should not have them.”
“While we work to responsibly harness the benefits of AI, the Justice Department is on high alert to its risks, including global threats to our national security,” said Deputy Attorney General Lisa Monaco. “As alleged in today’s charges, the defendant stole from Google over 500 confidential files containing AI trade secrets, while covertly working for China-based companies seeking an edge in the AI technology race. The Justice Department will relentlessly pursue and hold accountable those who would siphon disruptive technologies – especially AI – for unlawful export.”
“Today’s charges are the latest illustration of the lengths affiliates of companies based in the People’s Republic of China are willing to go to steal American innovation,” said FBI Director Christopher Wray. “The theft of innovative technology and trade secrets from American companies can cost jobs and have devastating economic and national security consequences. The FBI will continue its efforts to vigorously pursue those responsible for stealing U.S. companies’ intellectual property and most closely guarded secrets.”
“Mr. Ding allegedly schemed to siphon off cutting-edge AI technology from Google while secretly trying to go into business with Chinese competitors,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Through the Disruptive Technology Strike Force, we will work relentlessly to find and hold accountable those who would steal advanced American technology and jeopardize our national security and economic prosperity.”
“While Linwei Ding was employed as a software engineer at Google, he was secretly working to enrich himself and two companies based in the People’s Republic of China,” said U.S. Attorney Ismail Ramsey. “By stealing Google’s trade secrets about its artificial intelligence supercomputing systems, Ding gave himself and the companies that he affiliated with in the PRC an unfair competitive advantage. This office is committed to protecting the innovation of our Silicon Valley companies. To that end, we will aggressively investigate and prosecute the theft of sensitive trade secrets by insiders like Ding, including criminal efforts to jump start illegitimate competition.”
“In the one year since its inception, the Disruptive Technology Strike Force has been relentless in protecting advanced U.S. technologies, like artificial intelligence, from malign actors,” said Assistant Secretary Matthew S. Axelrod of the Commerce Department’s Office for Export Enforcement. “Let today’s announcement serve as further warning – those who would steal sensitive U.S. technology risk finding themselves on the wrong end of a criminal indictment.”
According to court documents, the technology Ding allegedly stole involves the building blocks of Google’s advanced supercomputing data centers, which are designed to support machine learning workloads used to train and host large AI models. According to the indictment, large AI models are AI applications capable of understanding nuanced language and generating intelligent responses to prompts, tasks, or queries. The indictment describes how Google developed both proprietary hardware and software to facilitate the machine learning process powered by its supercomputing data centers. With respect to hardware, Google uses advanced computer chips with the extraordinary processing power required to facilitate machine learning and run AI applications. With respect to software, Google deploys several layers of software, referred to in the indictment as the “software platform,” to orchestrate machine learning workloads efficiently. For example, one component of the software platform is the Cluster Management System (CMS), which functions as the “brain” of Google’s supercomputing data centers. The CMS organizes, prioritizes, and assigns tasks to the hardware infrastructure, allowing the advanced chips to function efficiently when executing machine learning workloads or hosting AI applications.
According to the indictment, Google hired Ding as a software engineer in 2019. Ding’s responsibilities included developing the software deployed in Google’s supercomputing data centers. In connection with his employment, Ding was granted access to Goggle’s confidential information related to the hardware infrastructure, the software platform, and the AI models and applications they supported. The indictment alleges that on May 21, 2022, Ding began secretly uploading trade secrets that were stored in Google’s network by copying the information into a personal Google Cloud account. According to the indictment, Ding continued periodic uploads until May 2, 2023, by which time Ding allegedly uploaded more than 500 unique files containing confidential information.
In addition, the indictment alleges that Ding secretly affiliated himself with two PRC-based technology companies. According to the indictment, on or about June 13, 2022, Ding received several emails from the CEO of an early-stage technology company based in the PRC indicating Ding had been offered the position of Chief Technology Officer for the company. Ding allegedly traveled to the PRC on Oct. 29, 2022, and remained there until March 25, 2023, during which time he participated in investor meetings to raise capital for the new company. The indictment alleges potential investors were told Ding was the new company’s Chief Technology Officer and that Ding owned 20% of the company’s stock.
According to the indictment, unbeknownst to Google, by no later than May 30, 2023, Ding had founded his own technology company in the AI and machine learning industry and was acting as the company’s CEO. Ding’s company touted the development of a software platform designed to accelerate machine learning workloads, including training large AI models. As alleged in the indictment, Ding applied to a PRC-based startup incubation program and traveled to Beijing, to present his company at an investor conference on Nov. 24, 2023. As set forth in the indictment, a document related to Ding’s startup company stated, “we have experience with Google's ten-thousand-card computational power platform; we just need to replicate and upgrade it - and then further develop a computational power platform suited to China's national conditions.”
The indictment alleges Ding’s conduct violated his employment agreement as well as a separate code of conduct that Ding signed when he became a Google employee. Further, the indictment describes measures that Ding allegedly took to conceal his theft of the trade secrets. For example, he allegedly copied data from Google source files into the Apple Notes application on his Google-issued MacBook laptop. By then converting the Apple Notes into PDF files and uploading them from the Google network into as separate account, Ding allegedly evaded detection by Google’s data loss prevention systems. Likewise, the indictment describes how in December 2023 Ding allegedly permitted another Google employee to use his Google-issued access badge to scan into the entrance of a Google building – making it appear he was working from his U.S. Google office when, in fact, he was in the PRC.
Ding is charged with four counts of theft of trade secrets. If convicted, Ding faces a maximum penalty of 10 years in prison and up to a $250,000 fine for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and Commerce Department are investigating the case.
The U.S. Attorney’s Office for the Northern District of California and Justice Department National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Today’s action was coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Chinese National Residing in California Arrested for Theft of Artificial Intelligence-Related Trade Secrets from GoogleRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Linwei Ding, aka Leon Ding, charging him with four counts of theft of trade secrets in connection with an alleged plan to steal from Google LLC (Google) proprietary information related to artificial intelligence (AI) technology. The announcement was made by Attorney General Merrick B. Garland this afternoon while participating in a “Fireside Chat” at the American Bar Association’s 39th National Institute on White Collar Crime in San Francisco. U.S. Attorney Ismail Ramsey posted a statement about the case here: https://youtu.be/l64VlrA-GUA.
According to the indictment, returned on March 5 and unsealed earlier today, Ding, 38, a national of the People’s Republic of China and resident of Newark, California, stole sensitive Google trade secrets and other confidential information from Google’s network to his personal account while secretly affiliating himself with PRC-based companies in the AI industry. Ding was arrested earlier this morning in Newark.
“The Justice Department will not tolerate the theft of artificial intelligence and other advanced technologies that could put our national security at risk,” said Attorney General Garland. “In this case, we allege the defendant stole artificial intelligence-related trade secrets from Google while secretly working for two companies based in China. We will fiercely protect sensitive technologies developed in America from falling into the hands of those who should not have them.”
“While we work to responsibly harness the benefits of AI, the Justice Department is on high alert to its risks, including global threats to our national security,” said Deputy Attorney General Lisa Monaco. “As alleged in today’s charges, the defendant stole from Google over 500 confidential files containing AI trade secrets, while covertly working for China-based companies seeking an edge in the AI technology race. The Justice Department will relentlessly pursue and hold accountable those who would siphon disruptive technologies – especially AI – for unlawful export.”
“While Linwei Ding was employed as a software engineer at Google, he was secretly working to enrich himself and two companies based in the People’s Republic of China,” said U.S. Attorney Ismail Ramsey. “By stealing Google’s trade secrets about its artificial intelligence supercomputing systems, Ding gave himself and the companies that he affiliated with in the PRC an unfair competitive advantage. This office is committed to protecting the innovation of our Silicon Valley companies. To that end, we will aggressively investigate and prosecute the theft of sensitive trade secrets by insiders like Ding, particularly when the theft endeavors to jump start illegitimate competition.”
“Today’s charges are the latest illustration of the lengths affiliates of companies based in the People’s Republic of China are willing to go to steal American innovation,” said FBI Director Christopher Wray. “The theft of innovative technology and trade secrets from American companies can cost jobs and have devastating economic and national security consequences. The FBI will continue its efforts to vigorously pursue those responsible for stealing U.S. companies’ intellectual property and most closely guarded secrets.”
“The FBI’s area of responsibility is home to internationally renowned innovation and cutting-edge technology. Unfortunately, this makes many businesses a target for criminals looking to steal crucial proprietary information, " said FBI Special Agent in Charge Robert Tripp. "This case exemplifies our commitment to protecting U.S. technologies and our ability to accelerate priority investigations when we have a pre-established relationship with private sector companies.”
“Mr. Ding allegedly schemed to siphon off cutting-edge AI technology from Google while secretly trying to go into business with Chinese competitors,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Through the Disruptive Technology Strike Force, we will work relentlessly to find and hold accountable those who would steal advanced American technology and jeopardize our national security and economic prosperity.”
“In the one year since its inception, the Disruptive Technology Strike Force has been relentless in protecting advanced U.S. technologies, like artificial intelligence, from malign actors,” said Assistant Secretary Matthew S. Axelrod of the Commerce Department’s Office for Export Enforcement. “Let today’s announcement serve as further warning – those who would steal sensitive U.S. technology risk finding themselves on the wrong end of a criminal indictment.”
According to court documents, the technology Ding allegedly stole involves the building blocks of Google’s advanced supercomputing data centers, which are designed to support machine learning workloads used to train and host large AI models. According to the indictment, large AI models are AI applications capable of understanding nuanced language and generating intelligent responses to prompts, tasks, or queries. The indictment describes how Google developed both proprietary hardware and software to facilitate the machine learning process powered by its supercomputing data centers. With respect to hardware, Google uses advanced computer chips with the extraordinary processing power required to facilitate machine learning and run AI applications. With respect to software, Google deploys several layers of software, referred to in the indictment as the “software platform,” to orchestrate machine learning workloads efficiently. For example, one component of the software platform is the Cluster Management System (CMS), which functions as the “brain” of Google’s supercomputing data centers. The CMS organizes, prioritizes, and assigns tasks to the hardware infrastructure, allowing the advanced chips to function efficiently when executing machine learning workloads or hosting AI applications.
According to the indictment, Google hired Ding as a software engineer in 2019. Ding’s responsibilities included developing the software deployed in Google’s supercomputing data centers. In connection with his employment, Ding was granted access to Google’s confidential information related to the hardware infrastructure, the software platform, and the AI models and applications they supported. The indictment alleges that on May 21, 2022, Ding began secretly uploading trade secrets that were stored in Google’s network by copying the information into a personal Google Cloud account. According to the indictment, Ding continued periodic uploads until May 2, 2023, by which time Ding allegedly uploaded more than 500 unique files containing confidential information.
In addition, the indictment alleges that Ding secretly affiliated himself with two PRC-based technology companies. According to the indictment, on or about June 13, 2022, Ding received several emails from the CEO of an early-stage technology company based in the PRC indicating Ding had been offered the position of Chief Technology Officer for the company. Ding allegedly traveled to the PRC on Oct. 29, 2022, and remained there until March 25, 2023, during which time he participated in investor meetings to raise capital for the new company. The indictment alleges potential investors were told Ding was the new company’s Chief Technology Officer and that Ding owned 20% of the company’s stock.
According to the indictment, unbeknownst to Google, by no later than May 30, 2023, Ding had founded his own technology company in the AI and machine learning industry and was acting as the company’s CEO. Ding’s company touted the development of a software platform designed to accelerate machine learning workloads, including training large AI models. As alleged in the indictment, Ding applied to a PRC-based startup incubation program and traveled to Beijing, to present his company at an investor conference on Nov. 24, 2023. As set forth in the indictment, a document related to Ding’s startup company stated, “we have experience with Google's ten-thousand-card computational power platform; we just need to replicate and upgrade it - and then further develop a computational power platform suited to China's national conditions.”
The indictment alleges Ding’s conduct violated his employment agreement as well as a separate code of conduct that Ding signed when he became a Google employee. Further, the indictment describes measures that Ding allegedly took to conceal his theft of the trade secrets. For example, he allegedly copied data from Google source files into the Apple Notes application on his Google-issued MacBook laptop. By then converting the Apple Notes into PDF files and uploading them from the Google network into as separate account, Ding allegedly evaded detection by Google’s data loss prevention systems. Likewise, the indictment describes how in December 2023 Ding allegedly permitted another Google employee to use his Google-issued access badge to scan into the entrance of a Google building – making it appear he was working from his U.S. Google office when, in fact, he was in the PRC.
Ding is charged with four counts of theft of trade secrets. If convicted, Ding faces a maximum penalty of 10 years in prison and up to a $250,000 fine for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and Commerce Department are investigating the case.
The U.S. Attorney’s Office for the Northern District of California and Justice Department National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Today’s action was coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
ding_indictment_filed.pdfChicopee Man Sentenced to 20 Years in Prison for Child Pornography OffensesRead the Press Release
BOSTON – A Chicopee man was sentenced yesterday in federal court in Springfield for creating and distributing child sexual abuse material (CSAM).
Michael Geoffroy, 36, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 20 years in prison and 10 years of supervised release. On Feb. 16, 2023, Geoffroy pleaded guilty to three counts of sexual exploitation of a child, three counts of distribution of child pornography and one count possession of child pornography.
“There is no higher priority in this office than protecting vulnerable children. As this case demonstrates, we will continue to devote significant resources to holding accountable in individual who engages in the sexual exploitation of children,” said Acting United States Attorney Joshua S. Levy.
“Michael Geoffroy sexually abused a little girl and documented it for his own twisted gratification. His trove of horrific images of that child and others represents an unimaginable level of pain and trauma inflicted on young victims,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Locking this sexual predator up doesn’t undo that damage, not by a long shot. But it does keep him from hurting anyone else and for that we are thankful.”
In December 2020, Geoffroy used a minor to create two videos and two images of CSAM. Geoffroy then distributed the videos and images in a chat group that same day. Geoffroy was arrested the following day and, during a search of his cellphone, was found in possession of more than 100 videos and images that depicting CSAM.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the Chicopee Police Department. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Unit prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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.
Caldwell Man Sentenced to 46 months for Unlawfully Possessing a FirearmRead the Press Release
BOISE – Gabriel Rendon, 25, of Caldwell, was sentenced to 46 months in federal prison for unlawful possession of a firearm, U.S. Attorney Josh Hurwit announced today.
According to court records, on March 23, 2023, officers responded to shots being fired at a local business in Nampa. Upon arriving, Rendon fled from officers. Rendon was apprehended and a loaded handgun was found inside a satchel he was carrying.
At the time of his arrest, Rendon was prohibited from possessing firearms due to a 2016 conviction for robbery. Rendon was also on parole for three prior felony convictions for robbery, aggravated assault, and possession of a controlled substance. Although Rendon admitted he was a gang member, he contends he dropped out of the gang during his previous prison sentence.
“Part of our public safety mission is enforcing the law that prohibits felons from possessing firearms, especially those people with prior violent felony convictions such as this Defendant,” said U.S. Attorney Hurwit. “We will continue to prosecute those who are prohibited from possessing firearms due to previous dangerous felony convictions.”
“This felon needs to be held accountable,” said Chief Joe Huff. “I am grateful no innocent community members and no police officers were injured or killed during this reckless incident, in the middle of the afternoon, in a busy commercial area of Nampa. I’m proud of the great teamwork between all of the agencies involved in bringing him to justice.”
U.S. District Judge Amanda K. Brailsford also ordered Rendon to serve three years of supervised release following his prison sentence. Rendon pleaded guilty to the federal charge in October of 2023.
U.S. Attorney Hurwit credited the cooperative efforts of the Nampa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, which led to the charge.
This case was prosecuted by Assistant U.S. Attorney Francis Zebari and Special Assistant U.S. Attorney Kelsey Manweiler, who was hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth.
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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Broward Sheriff’s Office deputy convicted at trial of COVID-19 relief fraudRead the Press Release
MIAMI – On March 5, a federal jury in Fort Lauderdale convicted a Broward Sheriff’s Office (BSO) deputy of two counts of wire fraud for her COVID-19 relief fraud scheme.
In 2021, Stephanie Diane Smith, 53, of Sunrise, Florida, applied for and received two PPP loans for herself as a sole proprietor doing business as Children 1st Basketball Training and Agape Smith Vending, respectively, based upon materially false information about each business’s total amount of gross income for the year 2019, including a falsified IRS tax form submitted with each application. Smith also sought and received forgiveness of both fraudulently obtained PPP loans, which totaled over $31,000 in principal and interest. During the period of the scheme, Smith was employed as a deputy sheriff in BSO’s Department of Law Enforcement.
The sentencing is scheduled for May 29 before U.S. District Judge James I. Cohn. Smith faces up to 20 years in prison for each wire fraud conviction. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney for the Southern District of Florida Markenzy Lapointe; Special Agent in Charge Jeffrey B. Veltri, FBI, Miami Field Office; Special Agent in Charge Brian Tucker, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, and Broward Sheriff Gregory Tony of BSO made the announcement.
FBI Miami, FRB-OIG and BSO investigated this case. Assistant U.S. Attorneys David Snider and Trevor Jones are prosecuting it. Assistant U.S. Attorney Darren Grove is handling asset forfeiture.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60203.
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Brothers Indicted for Conspiracy to Distribute 49 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A federal grand jury returned an indictment charging two brothers with conspiring to distribute and possessing with intent to distribute 49 kilograms of cocaine, U.S. Attorney Philip R. Sellinger announced today.
Nelson Santos Munoz, 30, and his brother, Amauris Santos Munoz, 31, both of Miami, Florida, are charged by indictment with one count of conspiracy to distribute and possess with intent to distribute cocaine and one count of possession with intent to distribute cocaine. The Santos Brothers appeared on March 5, 2024, before U.S. District Judge Zahid N. Quraishi in Trenton federal court. They were charged by criminal complaint in May 2023.
According to documents filed in this case and statements made in court:
On Jan. 26, 2023, law enforcement stopped a vehicle in Woodbridge, New Jersey, with three individuals, including the Santos brothers. During a search of the vehicle, law enforcement discovered approximately 49 kilograms of suspected cocaine, individually wrapped in packages with cellphone/plastic wrap in several suitcases and a backpack. A review of cell phone communications revealed that the Santos brothers traveled to the Dominican Republic and conspired to purchase cocaine and transport it to the United States for distribution. After importing the cocaine into the United States, the Santos brothers traveled from Florida to New Jersey with the intent to distribute the cocaine.
Each count carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life imprisonment, and a maximum fine of $10 million.
U.S. Attorney Sellinger credited members of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz, New Jersey Division, with the investigation leading to the charges. He also thanked the Woodbridge Police Department for its assistance.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the OCDETF/Narcotics Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
santosmunoz.indictment.pdfBrooklyn Woman Sentenced to 33 Months in Prison for Multifaceted COVID-19 Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that TATIANA DANIEL was sentenced today to 33 months in prison for conspiracy to commit wire fraud. DANIEL participated in a scheme to commit COVID-19 pandemic fraud by defrauding New York City’s COVID-19 Hotel Room Isolation Program; committing unemployment insurance (“UI”) benefits fraud; selling fabricated COVID-19 test results, both positive and negative; and obtaining fraudulent COVID-19 loans from both the U.S. Small Business Administration’s Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program. DANIEL’s sentence was imposed by U.S. District Judge Lewis A. Kaplan.
U.S. Attorney Damian Williams said: “Tatiana Daniel repeatedly exploited resources offered to help people and businesses in crisis. Her misconduct included selling fabricated COVID-19 test results, which likely put members of the public at risk of contracting the deadly virus from one of her customers. Daniel’s sentence reaffirms that those who illegally exploit disaster relief programs and endanger the public should expect to go to prison.”
According to the allegations contained in the Superseding Information, court filings, and statements made during court proceedings:
From June 2020 through September 2021, DANIEL conspired to commit COVID-19 pandemic fraud through a variety of different means.
First, DANIEL defrauded the COVID-19 Hotel Room Isolation Program (the “Program”). In response to the COVID-19 pandemic, New York City created the Program. Funded by New York City and the Federal Emergency Management Agency, the Program provided free hotel rooms for qualifying individuals throughout New York City. The Program was ultimately open to healthcare workers who needed to isolate because of exposure to COVID-19; patients who had tested positive for COVID-19; individuals who believed, based on their symptoms, that they were infected with COVID-19; and individuals who lived with someone who had COVID-19. As stated on the City’s website describing the Program, such individuals “may qualify to self-isolate in a hotel, free of charge, for up to 14 days if you do not have a safe place to self-isolate.” Those who wished to book a hotel room through the Program could either call a phone number or use an online hotel booking platform.
DANIEL defrauded the Program in at least two respects. First, she secured free Program hotel rooms for herself by falsely claiming to be a healthcare worker — specifically, a respiratory therapist. Second, she sold at least approximately 144 nights’ worth of fraudulently obtained hotel rooms to customers who were ineligible for the Program. In connection with this scheme, DANIEL used Facebook to advertise the sale of Program hotel rooms, to communicate directly with potential purchasers of Program hotel rooms, and to communicate with a co-defendant who worked at a call center that handled phone calls and certain reservations for the Program for several months in 2020.
Second, DANIEL conspired to fraudulently obtain more than approximately $97,000 in expanded COVID-19 UI benefits for both herself and others. She did so by making misrepresentations about herself and by stealing the identities of more than 10 individuals and collecting unemployment benefits issued for the benefit of those individuals, including an incarcerated individual. In addition, DANIEL filed unsuccessful UI benefits applications in other states.
Third, DANIEL operated a fraudulent document mill, through which DANIEL sold, among other things, “COVID Results,” “COVID-19 Hardship Letters,” “Doctors Notes,” and more (e.g., pay stubs, W2s, work verification letters). As part of her fraudulent document mill, DANIEL sold fabricated COVID-19 test results, both positive and negative. These fabricated test results included the names of purported medical personnel.
Fourth, DANIEL submitted fraudulent applications for COVID-19 loans through both the PPP and EIDL programs, resulting in the disbursement of thousands of dollars in pandemic loan funding to DANIEL and a co-conspirator.
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In addition to her prison sentence, DANIEL, 29, of Brooklyn, New York, was sentenced to three years of supervised release and ordered to forfeit $109,655 and to pay restitution of $401,206.
DANIEL’s three co-defendants were previously sentenced by Judge Kaplan, and their sentences are as follows: Chanette Lewis was sentenced principally to three years in prison, three years of supervised release, restitution of $360,330, and forfeiture of $289,536; Tatiana Benjamin was sentenced principally to one year and one day in prison, three years of supervised release, restitution of $294,624, and forfeiture of $51,088; and Heaven West was sentenced principally to time served, three years of supervised release, restitution of $59,644, and forfeiture of $23,684.
Mr. Williams praised the outstanding efforts of agents, investigators, and analysts from the New York City Department of Investigation, the New York Regional Office of the U.S. Department of Labor – Office of Inspector General (“DOL-OIG”), and the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams also thanked the New York/New Jersey High Intensity Drug Trafficking Area Intelligence Analysts for their support and assistance in this investigation. He also expressed gratitude to the New York City Police Department, the New York State Department of Labor, and the DOL-OIG Atlanta Regional Office for their assistance.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.
Broken Arrow Resident Sentenced for Child Sexual Exploitation MaterialsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jason Cory Bycroft, age 41, of Broken Arrow, Oklahoma, was sentenced for the production and possession of child sexual exploitation materials. Jason Bycroft was sentenced to 292 months in prison for two counts of Sexual Exploitation of a Child/Use of a Child to Produce a Visual Depiction and 240 months for two counts of Possession of Certain Material Involving the Sexual Exploitation of a Minor. The sentences on each count were ordered to run concurrently.
The charges arose from investigations by the Broken Arrow Police Department and the Federal Bureau of Investigation.
On April 19, 2022, Jason Bycroft pleaded guilty to the offenses. According to investigators, in July 2015 and in September 2017, Bycroft created videos of the exposed genitalia of children under the age of ten at a public swimming area. One of the depictions was created with the assistance of Heather Bycroft, the defendant’s wife and co-defendant. Heather Bycroft was found guilty by a federal jury on April 26, 2022, of Sexual Exploitation of a Child/Use of a Child to Produce a Visual Depiction and Possession of Certain Material Involving the Sexual Exploitation of a Minor, and is awaiting a formal sentencing hearing.
“The sentencing handed down today effectively ends Mr. Bycroft’s ability to exploit and endanger children for many years to come,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “The FBI’s commitment to combatting this threat will never waver, and we will continue working with our partners in law enforcement to send the message that crimes against children will not be tolerated.”
“The heinousness of this crime cannot be overstated. The defendant engaged in brazen predatory behavior,” said United States Attorney Christopher J. Wilson. “This office stands committed to prosecuting those who engage in child sexual exploitation and betray the public trust.”
The Honorable Timothy D. DeGiusti, U.S. Chief Judge in the United States District Court for the Western District of Oklahoma, sitting by assignment, presided over the hearings in Oklahoma City. Bycroft was remanded to the custody of the U.S. Marshal Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Morgan Muzljakovich represented the United States.
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 epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Berkeley County Man Sentenced for Drug TraffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Russell Dane Crown, age 54, of Falling Waters, West Virginia, was sentenced today to 108 months in federal prison for a drug trafficking charge.
According to court documents and statements made in court, Crown was selling methamphetamine, fentanyl, and cocaine base from his home in Berkeley County. Investigators found fentanyl capsules, cocaine base, crystal methamphetamine, three firearms, and cash in his house.
Crown will be required to report for supervised release for three years following his prison sentence.
Assistant U.S. Attorney Kyle Kane prosecuted the case on behalf of the government.
The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
U.S. District Judge Gina M. Groh presided.
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Arizona Woman Sentenced to 30 Months in Prison for 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 FBI Albuquerque Field Office, announced that Leticia Ashley was sentenced to 30 months in prison. Ashley, 38, of St. Michaels, Arizona and an enrolled member of the Navajo Nation, pleaded guilty to involuntary manslaughter on Oct. 2, 2023.
A federal grand jury indicted Ashley on Feb. 23, 2023. According to publicly available court documents, on July 29, 2022, Ashley consumed a half-pint of Fireball liquor before she got into the driver’s seat of her truck with her four young children as passengers and started to drive. Ashley was speeding when she lost control of the vehicle, causing it to leave the roadway and roll over several times. The crash was reported to law enforcement by a motorist who came upon the scene shortly afterward and narrowly missed encountering the speeding truck.
Ashley’s unrestrained five-year-old daughter died as a result of the vehicle crash and her other children were injured. Ashley was airlifted was University of New Mexico Hospital with a severely broken arm and spinal injury.
Upon her release from prison, Ashley will be subject to three years of supervised release.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Crownpoint Police. Assistant United States Attorney Kimberly Bell is prosecuting the case.
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Antlers Resident Sentenced for Child NeglectRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Shawn Erin Hudson, age 44, of Antlers, Oklahoma, was sentenced to time served and three years of supervised release for child neglect.
The charges arose from investigations by the Pushmataha County Sheriff’s Office and the Federal Bureau of Investigation.
On October 14, 2022, Hudson pleaded guilty to one count of an Information of Child Neglect. According to investigators, between December of 2017 and February of 2019, Hudson willfully and maliciously failed and omitted to provide adequate medical care, supervision, appropriate caretakers, and special care made necessary by the physical and mental condition of a child under the age of eighteen.
The crime occurred in Pushmataha County, within the boundaries of the Choctaw Nation Reservation, within the Eastern District of Oklahoma.
The Honorable Keith Starrett, U.S. District Judge in the United States District Court for the Southern District of Mississippi, sitting by assignment, presided over the hearings in Muskogee.
Assistant United States Attorney Edith Singer represented the United States.
Additional Contractors Indicted for Rigging Bids and Defrauding the U.S. Military in South KoreaRead the Press Release
A federal grand jury in the Western District of Texas returned a superseding indictment today charging a third South Korean national and a South Korean company for their roles in a bid-rigging conspiracy and a scheme to defraud the United States in connection with operation and maintenance work for U.S. military installations in South Korea.
According to the superseding indictment filed in the U.S. District Court for the Western District of Texas, Hye Yeon “Rachel” Jo was the CEO of DESCA Co. Ltd. (DESCA), a company that performed subcontract work on U.S. military installations in South Korea. Beginning at least as early as November 2018, Jo and DESCA, along with others, conspired to rig bids and fix prices for subcontract work, and defrauded the U.S. Department of Defense to obtain millions of dollars in repair and maintenance subcontract work at U.S military installations in South Korea. Hyuk Jin Kwon and Hyun Ki Shin, who conspired with Jo and DESCA, were previously indicted on similar charges on March 16, 2022.
“These alleged crimes targeted United States military installations overseas, where we make significant investments to protect our strategic interests,” said Director Daniel Glad of the Justice Department’s Procurement Collusion Strike Force (PCSF). “The Antitrust Division and our PCSF partners around the globe will continue to investigate and pursue charges for illegal conduct that targets U.S. military spending, wherever it occurs.”
“Fair and open competition is crucial to protecting the interests of the American taxpayer,” said Special Agent in Charge Stanley A. Newell of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s (DCIS) Transnational Operations Field Office. “The dedicated professionals of DCIS, along with our partners from the U.S. Army Criminal Investigation Division (CID), FBI and PCSF, remain vigilant in our efforts to bring to justice those who threaten the integrity of our military procurement system.”
“This adjudication was made possible by combining the investigative forces of Army CID’s Far East Fraud Resident Agency and the Republic of South Korea. These international partnerships are invaluable and help protect the integrity of the contracting and bidding process of the U.S. military,” said Special Agent in Charge Keith K. Kelly of the Army CID’s Fraud Field Office. “The Department of the Army Criminal Investigation Division is committed to identifying and holding accountable all those who would attempt to defraud the U.S. government and the American people.”
“Today’s indictment continues the results of the FBI’s investigation into a South Korean company for conspiring to defraud the United States,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “The defendants orchestrated a scheme to rig bids and fix prices to obtain millions of dollars in contract work on military bases. As this case demonstrates, the FBI is committed to taking meaningful action to maintain a fair and free marketplace both at home, and abroad.”
The eight-count indictment charges Jo, DESCA, Kwon and Shin with one count of conspiracy to restrain trade (violating the Sherman Act), one count of conspiracy to commit wire fraud and six counts of wire fraud. This indictment is the second in an investigation into bid rigging and price fixing for operation and maintenance work for U.S. military installations in South Korea. A South Korean company was previously sentenced for participating in the conspiracy and fraud scheme on Sept. 12, 2023.
The defendants face a maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations for the violation of the Sherman Act. They also face a maximum penalty of 20 years in prison and a $250,000 fine for violating the wire fraud statute. The maximum fines may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum. Upon a conviction, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s Washington Criminal II Section, Army CID, FBI and DCIS investigated the case.
Trial Attorneys Daniel E. Lipton and Daniel P. Chung of the Antitrust Division are prosecuting the case, with assistance from Assistant U.S. Attorney Matthew B. Devlin for the Western District of Texas.
Anyone with information about this investigation or other procurement fraud schemes should notify the Procurement Collusion Strike Force (PCSF) at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Activity in the U.S. Attorney's OfficeRead the Press Release
Drug Trafficking
Miguel Angel Guerrero-Castaneda, age 27, of Mexico, was sentenced to 57 months in federal prison for conspiracy to distribute fentanyl. The sentencing judge also recommended that the Bureau of Customs Enforcement begin removal proceedings so that the defendant is deported upon his release from prison. According to court documents, beginning in December 2022, Drug Enforcement Administration (DEA) investigators learned that several individuals were distributing large amounts of fentanyl in Laramie County, Wyoming. The investigation revealed that these individuals were acquiring fentanyl from sources in northern Colorado, including Guerrero-Castaneda. When Guerrero-Castaneda was arrested in Thornton, Colorado, on Jun. 6, 2023, he was found with approximately 9,000 fentanyl pills. The investigation also revealed that Guerrero-Castaneda was responsible for the distribution of approximately another 25,000 fentanyl pills in Wyoming from December 2022 through June 2023. Guerrero-Castaneda pled guilty to the charges on Dec. 18, 2023. This crime was investigated by the DEA and prosecuted by Assistant U.S. Attorney Timothy J. Forwood.
Bobby James Hainsworth, age 41, of Cheyenne, Wyoming, was sentenced to 57 months’ imprisonment for possession with intent to distribute fentanyl. Senior U.S. District Court Nancy D. Freudenthal imposed the sentence on Mar. 5. According to court documents, on May 9, 2023, a Laramie County Sheriff’s deputy conducted a traffic stop on a vehicle in which Hainsworth was a passenger. The deputy located a Coca-Cola can containing fentanyl that belonged to the defendant. On Dec. 13, 2023, Hainsworth pled guilty to the charges. The crime was investigated by the Drug Enforcement Administration and the Laramie County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Timothy J. Forwood.
Bradley Aaron Lieurance, age 24, of Cheyenne, Wyoming, was sentenced to 63 months in federal prison for distribution of methamphetamine, fentanyl, and heroin. Chief U.S. District Court Scott W. Skavdahl imposed the sentence on Mar. 5. According to court documents, in May 2021, the Wyoming Division of Criminal Investigation conducted several controlled purchases as part of an investigation into a larger drug operation within Natrona, Laramie, Albany, Campbell and Fremont Counties. While undercover, agents were led directly to Lieurance by a supplier and were told he was the source. Agents conducted three different controlled purchases from Lieurance, including 95 grams of methamphetamine and smaller quantities of heroin and fentanyl. Lieurance pled guilty to the charges on Nov. 22, 2023. This crime was investigated by the Wyoming Division of Criminal Investigation.
Domestic Violence
Vincent Acosta, age 46, of Moran, Wyoming, was sentenced to 60 months in federal prison for sexual abuse. Senior U.S. District Court Nancy D. Freudenthal imposed the sentence on Mar. 4. According to court documents, Acosta and the victim were seasonal employees working for a business operating in Grand Teton National Park. Park Rangers were called to the employee housing for the business for a report of a sexual assault. Acosta pled guilty to sexually assaulting the victim on Nov. 16, 2023. The crime was investigated by the National Park Service and prosecuted by Assistant U.S. Attorney Michael J. Elmore.
Illegal Re-entry of a Previously Deported Alien
Jose De La Cruz Guerra Torres, age 42, of Mexico City, Mexico, was sentenced to 12 months’ imprisonment for illegal re-entry into the United States of a previously deported alien. According to court documents, on Dec. 28, 2023, the defendant was convicted for manufacturing or delivery of controlled substances in Park County, Wyoming. U.S. Immigration and Customs Enforcement (ICE) verified that Guerra Torres had previously been deported and was in the United States illegally. This case was investigated by ICE and prosecuted by Assistant U.S. Attorney Cameron J. Cook. U.S. District Court Judge Alan B. Johnson imposed the sentence on Mar. 4.
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
Aberdeen Man Sentenced to 8 Years for Felony Death by Motor Vehicle in DWI Crash on Fort LibertyRead the Press Release
RALEIGH, N.C. – An Aberdeen man was sentenced to 96 months in prison, followed by three years of supervised release following a fatal DWI crash in January of 2023. Joel Newton Brewer, age 34, pled guilty to felony death by motor vehicle on November 30, 2023.
According to court documents and other information presented in court, on January 3, 2023, United States Army Military Police responded to emergency calls regarding a traffic collision at Fort Bragg Military Reservation (now Fort Liberty). Officers arrived to find two vehicles involved in the crash. One vehicle contained Brewer and the other contained an infant passenger with serious injuries. The driver of the vehicle with the infant had been ejected upon impact.
The investigation revealed that Brewer was driving 89 miles per hour in a 55 miles per hour zone as he drove left of the center line and struck the front of the victim’s vehicle. The victim then lost control of her vehicle and it veered toward the right shoulder of the road. When the victim’s vehicle came to a stop, the victim was ejected from the vehicle and partially decapitated. She was pronounced dead at the scene. The infant suffered life-threatening injuries but survived. Brewer’s alcohol concentration was 0.15. In North Carolina, it is illegal to drive a vehicle while noticeably impaired or with an alcohol concentration of 0.08 or higher.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. U.S. District Judge James C. Dever III presided over the sentencing. The Office of Provost Marshal and Army Criminal Investigation investigated the case. Assistant U.S. Attorney Sebastian Kielmanovich and Special Assistant U.S. Attorney Justin Brickey prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-00146-D-RN.
5 March 2024
Waterbury Gang Member Admits Role in 2018 Drive-By Shooting that Killed Innocent Bystander, Paralyzed SecondRead the Press Release
D’ANDRE BURRUS, also known as “Dopeman,” 30, of Waterbury, pleaded guilty yesterday in Bridgeport federal court to a racketeering offense stemming from his participation in the 960 gang, a violent Waterbury street gang.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Maureen T. Platt, State’s Attorney for the Waterbury Judicial District; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; James Ferguson, Special Agent in Charge, ATF Boston Field Division; and Waterbury Police Chief Fernando C. Spagnolo.
According to court documents and statements made in court, in an effort to address drug trafficking and related violence in Waterbury, the FBI, ATF, and Waterbury Police have been investigating multiple Waterbury-based groups, including the 960 gang. On September 14, 2021, a federal grand jury in Hartford returned a 36-count indictment charging Burrus and 15 other alleged 960 gang members with racketeering, narcotics trafficking, firearm possession, murder, attempted murder and assault, and obstruction of justice offenses.
In pleading guilty to one count of racketeering conspiracy, Burrus admitted that he trafficked heroin, fentanyl, and cocaine in furtherance of the 960 enterprise. He also admitted that he conspired to murder members of a rival gang on October 11, 2018, which resulted in the death of an innocent bystander, 30-year-old Fransua Guzman, and the paralysis of a second victim. Burrus was in one of two cars 960 members used when the victims were shot.
Burrus is scheduled to be sentenced by U.S. District Judge Kari A. Dooley on June 7, at which time he faces a maximum term of imprisonment of 20 years.
Burrus has been detained since his arrest on February 19, 2019.
This investigation is being conducted by the FBI’s Northern Connecticut Gang Task Force, ATF, and Waterbury Police Department, with the assistance of the Watertown Police Department, New Milford Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone, John T. Pierpont, Jr. and Natasha M. Freismuth, and Supervisory Assistant State’s Attorney Don E. Therkildesen, Jr. and Deputy Assistant State’s Attorney Alexandra Arroyo of the Waterbury State’s Attorney’s Office, who have been cross-designated as Special Assistant U.S. Attorneys in this matter.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Washington, D.C. Man Sentenced to 50 Years in Federal Prison for Use of a Firearm in Connection with a Murder and a Robbery, and for a Drug Distribution ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Madani Ilara Tejan, a/k/a “Malik,” “Mylik,” and “Dani,” age 31, of Washington, D.C., to 50 years in federal prison, followed by five years of supervised release, for using a firearm in connection with murder and robbery, and for a fentanyl distribution conspiracy. Tejan was convicted of those charges on February 17, 2023, after a nine-day trial.
The sentence was 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 R. Joseph Rothrock of the FBI Baltimore Field Office; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Chief Malik Aziz of the Prince George’s County Police Department; Chief Pamela Smith of the Metropolitan Police Department; Director Corenne Labbé of the Prince George’s County Department of Corrections; and Director Thomas N. Faust of the D.C. Department of Corrections.
According to the evidence presented at this nine-day trial, on October 3, 2018, Tejan met with a drug customer, to whom Tejan had arranged to sell drugs. During the meeting, Tejan shot and killed the drug customer (Victim 1), then stole the Victim 1’s car, wallet, and other personal items. On October 20, 2018, a search warrant was executed at a residence in Upper Marlboro, Maryland, associated with Tejan and law enforcement recovered Victim 1’s wallet, two bags of marijuana and a prepaid cellular phone. Investigation revealed that the prepaid phone had been in contact with the Victim 1’s phone several times on October 3, 2018 and was used interchangeably with Tejan’s registered phone to communicate with Victim 1 in the hours before his murder. Additionally, 1,013 fentanyl pills were seized from Tejan while he was residing in a government-run residential facility. Tejan’s social media accounts and phone messages revealed that he distributed fentanyl marketed as oxycodone as well as other prescription drugs and marijuana to multiple individuals, including Victim 1.
At a hearing held on February 27, 2024, the Court found that Tejan was also involved with the murder of Victim 2, which occurred on October 15, 2018. According to court documents and information provided at motions hearings, Victim 2 drove Tejan to his meeting with Victim 1 and was a witness to Victim 1’s murder. Witnesses reported that on October 15, 2018, the day of Victim 2’s murder, Tejan spent the day with Victim 2. Later that day, Tejan left with Victim 2 to sell marijuana in Washington, D.C., where Victim 2 was found shot to death. A ride sharing application showed that Tejan was picked up just minutes after Victim 2’s murder one block from where Victim 2 was found dead.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron and Assistant Attorney General Nicole M. Argentieri commended the FBI and the Baltimore Cross-Border Task Force, the DEA, the Prince George’s County Police Department, the Metropolitan Police Department, the Prince George’s County Department of Corrections, and the D.C. Department of Corrections, for their work in the investigation and thanked the Prince George’s County State’s Attorney’s Office and the U.S. Attorney’s Office for the District of Columbia for their assistance in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorney Kelly O. Hayes and Trial Attorney Gerald A. A. Collins of the Criminal Division’s Violent Crime and Racketeering Section, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Virginia Man Indicted in D.C. on Charges of Distribution of Child PornographyRead the Press Release
WASHINGTON – Andrey Chun Sarmiento, 24, of Hallwood, Virginia, is charged by indictment, unsealed today, with distribution of child pornography, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott, of the Washington Field Office’s Criminal and Cyber Division, and Chief Pamela Smith, of the Metropolitan Police Department (MPD). Special agents with the FBI arrested Sarmiento in Harrisburg, Pennsylvania, on Friday, March 1.
According to the indictment, on February 13, 2024, Chun Sarmiento distributed numerous video files depicting adult males engaging in sexually explicit conduct with minors via an encrypted instant messaging application.
On February 13, 2024, a member of the MPD-FBI Child Exploitation Task Force was monitoring an online application in an undercover capacity. Law enforcement has come to learn that the application is used by some individuals who have a sexual interest in children. The undercover agent encountered Chun Sarmiento, who sent a message believing he was communicating with a pedophile. Chun Sarmiento expressed his sexual interest in children and sent the undercover agent a link to an online folder containing hundreds of videos, many of which depict adult males sexually abusing prepubescent boys. At the time of the offense, Chun Sarmiento was enrolled in law school in Harrisburg, Pennsylvania.
On February 29, 2024, a federal grand jury in the District of Columbia returned an indictment charging Chun Sarmiento with one count of distribution of child pornography. The case is assigned to the Honorable Loren L. AliKhan of the U.S. District Court for the District of Columbia.
On Friday, March 1, the FBI arrested Chun Sarmiento in Pennsylvania and executed a search warrant at his residence there. Chun Sarmiento will remain in custody pending a detention hearing to be held in the U.S. District Court for the District of Columbia.
Distribution of child pornography carries a mandatory minimum sentence of five years’ imprisonment and a statutory maximum of 20 years’ imprisonment. The statutory sentences for federal offenses are prescribed by Congress and are provided here for informational purposes. Any sentence will be determined by the Court based on the advisory Sentencing Guideline and other statutory factors.
The case is being investigated by the FBI’s Washington Field Office and the Metropolitan Police Department. Valuable assistance was provided by the FBI’s Philadelphia Field Office’s Harrisburg Resident Agency and the U.S. Attorney’s Office for the Middle District of Pennsylvania. The case is being prosecuted by Assistant U.S. Attorney Paul V. Courtney of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Virginia Beach man pleads guilty to federal firearms conspiracyRead the Press Release
NEWPORT NEWS, Va. – A Virginia Beach man pleaded guilty yesterday to possessing and transferring machineguns and to conspiring to illegally sell firearms, including machineguns, handguns, and rifles.
According to court documents, beginning in April 2023, law enforcement began investigating Eric Floyd, 22, who was engaged in selling firearms and Machinegun Conversion Devices, commonly referred to as “Glock switches,” which are used to convert semiautomatic firearms into machineguns. From May to December of 2023, Floyd and his co-conspirators arranged the sale of approximately nineteen handguns, two rifles, and thirty-five Glock switches – many of which they manufactured – to an individual who, unbeknownst to Floyd, was an undercover federal law enforcement agent. At one transaction, Floyd told the individual that some of the firearms were “dirty,” that is, involved in criminal activity, because he and his associates were involved in criminal activity and that his selling the dirty firearms to others who were taking them far away helped distance the original perpetrators and firearms from their criminal activity. He also told the individual that he had reinvested the proceeds of the purchases into buying more firearms for the business. He also said, with respect to the individual’s trip, “that’s a trip and it’s a hell of a risk that you doing this s--- for like coming across them state lines, that’s straight fed time.”
Floyd pleaded guilty to one count of conspiring to engage in the firearms business without a license and to illegally possess and transfer a machinegun and one count of illegally possessing and transferring a machinegun. He is scheduled to be sentenced on July 11. Floyd faces a maximum penalty of fifteen years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea.
Assistant U.S. Attorney Julie Podlesni is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:23-cr-75.
Violent Career Offender Sentenced to 20 Years in Federal Prison for Distribution of Methamphetamine ActualRead the Press Release
JONESBORO—Brandon Loss Farmer, a violent and multi-convicted felon, will spend the next 20 years in federal prison for distribution of methamphetamine actual. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down today by United States District Judge D.P. Marshall, Jr.
On October 30, 2023, Farmer, 41, of Wynne, Arkansas, pleaded guilty to one count of distribution of methamphetamine actual. Judge Marshall also sentenced Farmer to five years’ supervised released and a $100.00 special assessment. Farmer, who has multiple prior convictions for domestic violence, aggravated assault and battery, drug possession and distribution, and theft, was indicted on April 7, 2021, on one count of knowingly and intentionally distributing 50 grams or more of methamphetamine actual. The maximum penalty Farmer faced was 10 years to life imprisonment, a fine of $10,000,000, and not less than five years’ supervised release. There is no parole in the federal system.
On November 19, 2020, an individual contacted Farmer by telephone to inquire about purchasing methamphetamine. Farmer advised the individual that he was not home but would return later in the day and could take care of the individual. A controlled purchase of approximately 130.6 grams of methamphetamine actual was made by the individual from Farmer.
The investigation was conducted by the Drug Enforcement Administration and the Wynne Police Department.
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Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
X (formerly known as Twitter):
@USAO_EDAR
Utah Businessman Indicted for Allegedly Failing to Remove 3,330 Tons of Asbestos-Containing Debris After Hotel DemolitionRead the Press Release
SALT LAKE CITY, Utah – A federal grand jury in Salt Lake City, Utah, returned an indictment February 14, 2024, charging a businessman and part owner of a company that owned Broadway Hotel, with Clean Air Act Violations. The owner failed to properly dispose of 3,330 tons of asbestos-containing debris, which cost the Environmental Protection Agency $1.1 million to remove following emergency action.
According to court documents, Daniel J. Brett, 68, of Murray, Utah, was a businessman and part-owner of the Broadway Hotel, a 21,000 square foot structure located on North Broadway Avenue in Tooele, Utah. The hotel was in a residential and mixed-use neighborhood with three primary schools within a half mile. Brett and his co-owner/managing partner intended to include the hotel in a redevelopment project, known as the Broadway Heritage Village. However, in July 2020, the Broadway Hotel experienced a fire, and its demolition was ordered by the owners because the hotel was deemed structurally unsound. Brett and his partner began coordinating the hotel’s demolition, ignoring the fact the hotel contained asbestos in numerous locations, including in its thermal system/boiler insulation, wall plaster, rolled vinyl flooring and roofing materials. The presence of asbestos in the Broadway Hotel was known since 2011, when an Environmental Site Assessment was performed by a third party.
The owners hired an excavation company, which was not trained or certified to work with regulated asbestos-containing material, to demolish the hotel. Additionally, this was the company’s first major demolition. In December 2020, two individuals at the excavation company performed the demolition without self-contained breathing apparatus and protective suits and other protective equipment (PPE). Brett agreed, as owner, to dispose of the debris after demolition. However, Brett left the Broadway Hotel debris pile at the site, uncovered for fifteen months. Despite knowing the demolition pile contained asbestos-containing material, Brett did not keep the demolition pile continually wet, as required by the Clean Air Act.
In February 2022, contractors with the United States Environmental Protection Agency (EPA) initiated an emergency removal action at the site of the Broadway Hotel debris pile. The work was completed in March 2022. The emergency removal action ultimately required the clean-up and proper disposal of 3,330 tons of asbestos containing debris, which cost the EPA, approximately $1.1 million.
EPABrett is charged with three counts of Clean Air Act violations. His initial court appearance on the indictment is scheduled for March 14, 2024, at 1:00 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The U.S. Environmental Protection Agency (EPA) is investigating the case.
Assistant United States Attorney Ruth Hackford-Peer of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.U.S. Attorney’s Office Prosecuted 85 Firearm Offenders, while Seizing and Forfeiting 163 Illegal Firearms in 2023Read the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that in 2023, the office she leads prosecuted 85 illegal firearm offenders, resulting in the seizure and forfeiture of 163 illegally owned, possessed, used, or obtained firearms. Firearms that are forfeited are removed from the possession of a convicted criminal defendant and relinquished to the government for disposal, including potentially the return of stolen firearm to rightful owners.
“The 85 firearm offenders my office prosecuted in 2023 had access to illegal firearms and many demonstrated an inclination for violence. These prosecutions are a stark reminder of the nexus of firearms and violent crimes,” stated U.S. Attorney Waldref. “Our collaborative law enforcement partnerships at the federal, state, local and tribal level have a significant impact in removing illegal firearms off our streets, reducing violent crime and making our communities safer.”
Since the start of 2023, the 85 defendants were charged with various federal firearm offenses, which included, among other crimes, Possession of a Firearm by a Convicted Felon, Assault with a Deadly Weapon on a Federal Law Enforcement Officer, Possession of a Firearm and Ammunition by a Person Convicted of Domestic Violence, First-Degree Murder, and Attempted Murder of a Federal Officer.
The majority of these firearm and violent crime cases were prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office partners with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington.
“The FBI works alongside our law enforcement partners to keep our communities and neighborhoods safe.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “The FBI’s goal is to build cases which disrupt and dismantle the capabilities of criminal enterprises, putting the worst offenders behind bars to keep communities safer. The impact of firearms violations highlighted from 2023 represent a step forward in achieving that aim. These results would not be possible with the strong partnerships within the public safety community.”
“The nexus between drug trafficking and firearms illustrates the danger of violence at the hands of members of drug trafficking organizations,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “DEA worked diligently with the United States Attorney’s Office and with our Federal, state, local, and tribal partners to keep our communities safe from drug-fueled violence, as these seizures prove.”
“ATF supports our 2nd Amendment rights to bear arms,” said ATF Seattle Special Agent in Charge Jonathan Blais. “But when people commit crimes with firearms, or possess illegal firearms, ATF is at the forefront of ensuring these people are investigated and referred for prosecution, making our communities safer and protecting the rights of law-abiding citizens.”
Enforcing federal firearm prohibitions is also a crucial part of combating domestic violence. Domestic violence abusers with access to a gun are five times more likely to kill their partners. In addition to their lethality, firearms are used by abusers to inflict fear, intimidation, and coercive control. Law enforcement responding to active domestic violence scenes are at increased risk when firearms are present. Under federal law, people with domestic violence misdemeanor and felony convictions and those subject to domestic violence protective orders are prohibited from purchasing or possessing firearms.
In October 2022, U.S. Attorney Waldref announced her office’s Safe Homes, Safe Community Initiative to prevent domestic violence homicides and prevent abusers who have previously been convicted of domestic violence offenses from having access to firearms. Partnering with the Yakima Police Department, Yakima County Prosecutor’s Office, Spokane Police Department, and Spokane County Prosecutor’s Office, and domestic violence prevention advocates, the U.S. Attorney’s Office focuses enforcement on individuals identified as repeat domestic violence abusers in possession of firearms.
“Everyone deserves to live in a safe home free of domestic violence,” said U.S. Attorney Waldref. “Federal prosecutors witness the devastating impacts of domestic violence on the lives of victims and their families, who may endure long-term trauma and are at increased risk for returning to abusive relationships. Our Safe Homes, Safe Community initiative focuses on victim safety, law enforcement safety and community safety. Here in the Eastern District of Washington, my Office is committed to use all the tools at our disposal—including leveraging our partnerships with local law enforcement and local prosecutors—to ensure victims have a viable path to safety and justice.”
Major firearms-related cases filed or pending in the Eastern District of Washington in 2023 include:
21 Year-Old Moxee Gang Member Sentenced to 12 Years In Federal Prison for Possessing Firearms in Furtherance of a Drug Trafficking Crime
Alexis Sanchez-Gomez was gang member who trafficked drugs and possessed firearms. He was sentenced to 12 years in federal prison.
30 Year-Old Yakama Man Sentenced to 10 Years Imprisonment for Brandishing a Firearm During and in Relation to a Crime of Violence
James Skahan-Lowe was sentenced to 10 years in federal prison for Brandishing a Firearm During and in Relation to a Crime of Violence. Skahan-Lowe pointed a rifle at the victim, then beat him with it.
Richland Man With Extensive Criminal History Sentenced to 12 Years in Prison After Shooting A Person and Conspiring To Distribute Fentanyl-Laced Pills in Tri-Cities
Jonathan Scott Ard was sentenced to 12 years in federal prison on fentanyl and gun charges. Ard has long criminal record which includes a significant history of crimes of violence.
Othello Woman Sentenced to 46 Months in Federal Prison for Firearm Offense
Alondra Yanez was sentenced to 46 months in federal prison for being a Felon in Possession of Firearms. Yanez helped traffic 11 stolen firearms. One of the stolen firearms sold by Yanez was used during the homicide of a four-year-old child in Othello, Washington in February of 2021.
Yakima Man Sentenced to 48 Months in Federal Prison for Firearm Offense
James Duane Deckard was sentenced to 48 months in federal prison for being an Unlawful User of Controlled Substances and Person Convicted of Domestic Violence in Possession of a Firearm and Ammunition. Deckard was involved in a domestic dispute where he pointed a firearm at his intimate partner.
31 Year-Old Yakima Man Sentenced to 7 Years Imprisonment for Being a Felon in Possession of Firearms Stolen From Fish and Wildlife Building
Alexander Scott Stevens was sentenced to seven years in prison for being a Felon in Possession of Firearms. Stevens was linked to the theft of 18 firearms and a suppressor from the Washington Department of Fish and Wildlife.
Othello Man Sentenced to 168 Months in Federal Prison for Firearm Offenses Related to the Homicide of a Four-Year-Old Child
Felipe Tapia-Perez was sentenced to 168 months in federal prison to being an Unlawful Alien in Possession of a Firearm and Possession of a Stolen Firearm. In February of 2021 Tapia-Perez bought a stolen firearm. A short time later he was involved in a domestic dispute with his partner. During the argument, Tapia-Perez was holding the stolen firearm. The pistol discharged, and the bullet struck his four-year-old child in the head. The child later passed away at the hospital.
Repeat Domestic Abuser Sentenced to 51 Months in Federal Prison for Firearm Offense
Frederick Terrell was sentenced to 51 months in prison for being a Felon in Possession of a Firearm. Terrell texted his intimate partner three videos that showed him shooting a pistol. Terrell was prohibited from possessing firearms due to multiple prior felony convictions. Terrell also has at least seven prior convictions arising from domestic violence assaults.
Long-Time Sureno Gang Member Sentenced to More Than 20 Years in Federal Prison for Shooting an Undercover Law Enforcement Officer
Randy Coy James Holmes, age 25, of Spokane, Washington, was sentenced today to more than 20 years in federal prison for Assault with a Deadly Weapon on a Federal Law Enforcement Officer.
Holmes shot the undercover ATF during the purchase of a firearm.
Spokane Man Sentenced to 20 Years in Prison for Drug Trafficking and Firearms Offenses
Merced Zamora was sentenced to 20 years in federal prison for Possession with Intent to Distribute 50 Grams of Actual Methamphetamine, Felon in Possession of a Firearm, as well as for Use, Carry, and Possession of a Firearm During and in Relation to a Drug Trafficking Offense.
Zamora was driving on a suspended license. Spokane County Sheriff’s Deputies recovered two firearms, ammunition, and a half pound of methamphetamine following a search of his vehicle. Zamora was found guilty by a jury of his peers after a multi-day jury trial in Spokane, Washington.
Domestic Abuser Sentenced to 4 Years in Federal Prison for Firearm Offense
Michael Ross was sentenced to 4 years in prison for being a Felon in Possession of a Firearm.
At the time he was detained, Ross had three convictions for crimes that qualify for federal felonies, including, one count Second Degree Assault (Domestic Violence), First Degree Burglary, and seven counts of Possession of a Stolen Firearm.
Felon Found with Almost a Dozen Firearms, Sentenced to 7 Years in Prison
Zachary Wade Bennett was sentenced to 84 months in federal prison for Felon in Possession of a Firearm. During a search of home, deputies found 10 guns, including three AR-15 rifles, boxes of ammo, drug paraphernalia, ledgers detailing his drug distribution operations, heroin and hallucinogenic mushrooms.
More information about Project Safe Neighborhoods can be found here.
U.S. Attorney’s Office Concludes Investigation into Fatal ShootingRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against two officers from the Metropolitan Police Department (MPD) for their role in an October 19, 2023, fatal shooting involving a 33-year old District resident that occurred in the 2800 block of Naylor Road, S.E., Washington, D.C.
The U.S. Attorney’s Office and the MPD Internal Affairs Division conducted a comprehensive review of the incident, which included a review of law enforcement and civilian accounts, crime-camera footage, BWC footage, physical evidence, recorded radio communications, forensic reports, the autopsy report, and reports from MPD.
According to the evidence, at about 5:00 p.m. MPD officers were summoned to the 2800 block of Gainesville Street, S.E., for a report of a man with a gun made by a 911 caller. The officers observed a man matching the description given by the 911 caller and attempted to make contact with the individual. The individual ran from the police and a foot chased ensued. As the individual entered the backyard of a house in the 2800 block of Naylor Road, he turned and fired a handgun at the police. The officers, including MPD Officer Dallas Bennett, responded. Officer Bennett returned fire and another officer was struck during the exchange. As this was occurring, MPD Officer Jonathan Hasstedt approached the scene by running towards the front of the house. The individual emerged from the side area of the same house and pointed a gun at Officer Hasstedt, who then drew his weapon and shot the individual. The individual collapsed after running a few more feet. The police immediately initiated life-savings measures. However, the individual was declared dead at the scene. Officer Bennett was taken to the hospital and is expected to survive his wounds.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the MPD Officers Bennett and Hasstedt, both involved in the incident, are criminally liable for the death of the decedent.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
U.S. Attorney’s Office Collects $6,638,788.11 from Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
HONOLULU – U.S. Attorney Clare E. Connors announced today that the United States Attorney’s Office for the District of Hawaii collected $6,638,788.11 from criminal and civil actions in Fiscal Year 2023. Of this amount, $6,360,465.69 was collected in criminal actions and $278,322.42 was collected in civil actions.
The Hawaii U.S. Attorney’s Office also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $425,476.84 in civil cases pursued jointly by these offices.
“The imposition of financial penalties and restitution obligations are critical to achieving justice for violations of our criminal and civil laws,” said U.S. Attorney Clare E. Connors. “Obtaining money in satisfaction of a criminal sentence or civil judgment is particularly important and remains one of our foremost objectives.”
In 2023, the District of Hawaii recovered over $3.2 million through a bankruptcy proceeding involving George Lindell, who in May 2015, was convicted after a 27-day trial of operating an extensive Ponzi scheme in which 166 individuals were induced to invest over $26 million dollars. During 2023, the United States also recovered over $109,000 through the sentence imposed on Garrett Okubo, a physical therapist convicted in 2019 of submitting false claims to obtain payment for physical therapy services to TRICARE, Medicare, Medicaid, and HMSA.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. as well as criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in Hawaii, working with partner agencies and divisions, collected $1,000,765 in asset forfeiture actions in FY 2023. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Two Men Charged with Murdering Witnesses and Burying Their Remains to Thwart Investigation of Drug Trafficking OrganizationRead the Press Release
NEWS RELEASE SUMMARY – March 5, 2024
SAN DIEGO – A superseding indictment was partially unsealed in the Southern District of California today charging Benjamin Madrigal-Birrueta, an alleged drug trafficker, with murdering two people to prevent them from testifying in drug trafficking prosecutions that were pending in federal court in San Diego.
The victims were identified as Cesar Armando Murillo, 44, and Maira Sofia Hernandez, 33, residents of Yakima, Washington. Court filings indicate Hernandez was six-months pregnant when she was killed, and the superseding indictment includes a separate count charging Madrigal-Birrueta with the death of her in utero child.
“These executions were an assault on our justice system, designed to silence witnesses and instill fear,” said U.S. Attorney Tara McGrath. “The obligation to protect witnesses is paramount and the United States will fully prosecute intimidation and violence designed to interfere with the justice system.”
“The cartels and drug trafficking organizations have reached beyond our borders, bringing their criminality to every city and small town in our interior,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “The murder of witnesses is an afront to our rule of law but HSI, along with our law enforcement partners, have the resources to uncover these horrible crimes and the dedication to dismantle the organizations harming our population, wherever they may be located.”
“HSI continues to tirelessly investigate criminal organizations who traffic dangerous drugs across our border and into the interior of the United States. In this pursuit we will ensure that anyone who is responsible for causing harm to a witness in one of our investigations is held accountable for these actions,” said HSI San Diego SAC Chad Plantz. “Fear or harm caused to those who report a crime or testify diminishes the public’s trust in the criminal justice system and erodes the foundation of the rule of law. HSI and its partners are committed to ensuring that anyone who tampers with witnesses or breaks the laws in place to protect them are brought to justice.”
The superseding indictment also charges Ricardo Orizaba with being an accessory after the fact to murder. Court filings indicate both victims were buried in a remote high-desert location near Yakima and that these charges follow a year-long search culminating in the discovery of their remains in September 2023. Hernandez is survived by her three minor children and Murillo is survived by two minor children.
The superseding indictment alleges Defendant Madrigal-Birrueta was a leader in a criminal enterprise that committed a series of felony violations of federal drug laws. According to court filings, the investigation originated with the seizure of drugs from vehicles using San Diego area ports of entry between August and October of 2021. The organization used late model stolen vehicles to smuggle drugs. The superseding indictment alleges that Madrigal-Birrueta is responsible for the importation of those drugs.
According to court filings, by August of 2022, the investigation led agents to a group of individuals operating out of Yakima. Special Agents with Homeland Security Investigations interviewed Murillo and Hernandez, and within days of those interviews, Murillo and Hernandez were murdered and their bodies were buried in the high desert. Court filings describe how these charges follow an exhaustive, year-long investigation that employed geophysicists, ground penetrating radar, aircraft, laser imaging, chemical testing of the soil, numerous cadaver dogs, and other law enforcement techniques to search for the victims’ remains. HSI Special Agents successfully recovered the remains on September 13, 2023, aided by a Washington State Police Crime Scene Investigations team.
Special Agents with Homeland Security Investigations working with Washington State Police to exhume remains on September 13, 2023.
Court filings further indicate that, based on autopsy reports, both victims died of multiple gunshot wounds to the head.
During the investigation agents seized methamphetamine, cocaine, fentanyl, multiple firearms — including a machine gun — and body armor from Madrigal-Birrueta’s drug trafficking organization. In addition to the homicides, the superseding indictment charges Madrigal-Birrueta with possessing a machine gun in furtherance of a drug trafficking crime.
Federal courts in California and Washington state have ordered that Madrigal-Birrueta and Orizaba be detained pending trial, and both are in custody.
Weapons seized during the investigation on September 8, 2022.
This case is being prosecuted by Assistant U.S. Attorneys Stephen H. Wong and Alicia P. Williams.
DEFENDANTS Case Number 23cr1684-RBM
Benjamin Madrigal-Birrueta Age: 22 Yakima, WA
Ricardo Orizaba Age: 21 Yakima, WA
SUMMARY OF CHARGES
Count 1:
Continuing Criminal Enterprise – Title 21, United States Code, Sections 848(a) and (b)(2)
Maximum penalty: Mandatory minimum twenty years and up to life in prison, $2 million fine
Count 2:
Conspiracy to Distribute Controlled Substances – Title 21, United States Code, Sections 841 and 846
Maximum penalty: Mandatory minimum ten years and up to life in prison, $2 million fine
Count 3:
Conspiracy to Import Controlled Substances – Title 21, United States Code, Sections 952, 960 and 963
Maximum penalty: Mandatory minimum ten years and up to life in prison, $2 million fine
Count 4:
Murder of Cesar Armando Murillo in Furtherance of a Drug Trafficking Conspiracy – Title 21, United States Code, Section 848(e)
Maximum penalty: Mandatory minimum sentence of twenty years and up to life, or death
Count 5:
Murder of Maira Sophia Hernandez in Furtherance of a Drug Trafficking Conspiracy – Title 21, United States Code, Section 848(e)
Maximum penalty: Mandatory minimum twenty years and up to life, or death
Count 6:
Conspiracy to Commit Witness Tampering: First Degree Murder – Title 18, United States Code, Sections 1512(a)(1)(A), (c), (2)(A), (3)(A), (c), (k), and 1111
Maximum penalty: Mandatory minimum term of life in prison or death, $250,000 fine
Count 7:
Witness Tampering: First Degree Murder of Cesar Armando Murillo – Title 18, United States Code, Sections 1512(a)(1)(A), (c), (3)(A), (c), (3)(A), and 1111
Maximum penalty: Mandatory minimum term of life in prison or death, $250,000 fine
Count 8:
Witness Tampering: First Degree Murder of Maira Sophia Hernandez – Title 18, United States Code, Sections 1512(a)(1)(A), (c), (3)(A), (c), (3)(A), and 1111
Maximum penalty: Mandatory minimum life in prison or death, $250,000 fine
Count 9:
Causing the Death of a Child in Utero – Title 18, United States Code, Sections 1841 and 1111.
Maximum penalty: Mandatory minimum life in prison or death, $250,000 fine
Count 10:
Witness Tampering: Threat of Force – Title 18, United States Code, Sections 1512(a)(2)(A), (C), (3)(A), and 1111
Maximum penalty: Up to twenty years in prison, $250,000 fine
Count 11:
Accessory After the Fact to Murder – Title 18 United States Code, Sections 3 and 1512(a)(1)(A) and Title 21, United States Code, Section 848(e), $250,000 fine
Count 12:
Possession, Brandishing, and Discharge of a Firearm in Furtherance of a Drug Trafficking Crime and a Crime of Violence – Title 18, United States Code, Sections 924(c)(1)(A)(iii) and 2, $250,000 fine
Count 13:
Possession and Brandishing of a Firearm in Furtherance of a Drug Trafficking Crime and a Crime of Violence – Title 18, United States Code, Sections 924(c)(1)(A)(iii) and 2, $250,000 fine
Count 14:
Possession, Brandishing, and Discharge of a Firearm in Furtherance of a Drug Trafficking Crime and a Crime of Violence – Title 18, United States Code, Sections 924(c)(1)(A)(iii) and 2, $250,000 fine
Count 15:
Possession of a Firearm in Furtherance of a Drug Trafficking Crime – Title 18, United States Code, Sections 924(c)(1)(A)(iii) and 2, $250,000 fine
Count 16:
Possession of a Machine Gun in Furtherance of a Drug Trafficking Crime – Title 18, United States Code, Sections 924(c)(1)(A)(i), (B)(ii), and 2 and Title 26, United States Code, Section 5845(b), $250,000 fine
Count 17:
Conspiracy to Commit Money Laundering – Title 18, United States Code, Section 1956(a)(1)(A)(i) and (h), $250,000 fine
AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Federal Bureau of Investigation
Bureau of Alcohol, Tobacco, Firearms and Explosives
Washington State Police
California Highway Patrol
Yakima Police Department
Tulare County Sheriff’s Office
Visalia Police Department
Fresno Sheriff’s Office
Fresno Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Eastern Panhandle Residents Sentenced for Drug TraffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Eastern Panhandle residents were sentenced today for drug trafficking.
Kimberely Sue Smith, age 54, of Falling Waters, West Virginia, was sentenced today to 10 years in federal prison for conspiracy to possess with intent to distribute and to distribute crystal methamphetamine, fentanyl, and cocaine base. According to court documents and statements made in court, Smith, also known as “Tina-Marie Smith” and “Deniej Smith,” was selling methamphetamine, fentanyl, and cocaine base in Berkeley County. A search of her home uncovered fentanyl capsules, cocaine base, crystal methamphetamine, and cash. Smith will be required to report for supervised release for three years following her prison sentence.
Charles Douglas Cobak, age 34, of Ridgeley, West Virginia, was sentenced today to 15 years and 8 months in federal prison for conspiracy to possess with intent to distribute and to distribute 50 grams or more of methamphetamine hydrochloride. According to court documents and statements made in court, the U.S. Postal Inspection Service found a suspicious package and contacted the Potomac Highlands Drug Task Force. The package contained 2.3 pounds of methamphetamine and was meant for Cobak. Cobak will serve five years of supervised release when he is released from prison.
Assistant U.S. Attorney Kyle Kane prosecuted the Smith case on behalf of the government. Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the Cobak case.
The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated the Smith case. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; the U.S. Postal Inspection Service; and the Mineral County Sheriff’s Office investigated the Cobak matter.
U.S. District Judge Gina M. Groh presided.
Two Defendants Arrested for Conspiring to Illegally Export Weapons to South SudanRead the Press Release
A federal criminal complaint was unsealed yesterday in the District of Arizona charging Abraham Chol Keech, 44, of Utah, and Peter Biar Ajak, 40, of Maryland, with conspiring to purchase and illegally export millions of dollars’ worth of fully automatic rifles, grenade launchers, Stinger missile systems, hand grenades, sniper rifles, ammunition, and other export-controlled items from the United States to South Sudan, in violation of the Arms Export Control Act (AECA) and the Export Control Reform Act (ECRA).
“As alleged, the defendants sought to unlawfully smuggle heavy weapons and ammunition from the United States into South Sudan – a country that is subject to a U.N. arms embargo due to the violence between armed groups, which has killed and displaced thousands,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice will not tolerate the illicit export of weapons overseas, and we will hold accountable those who would violate our laws.”
“Sanctions and export controls help ensure that American weapons are not used internationally to destabilize other sovereign nations,” said U.S. Attorney Gary Restaino for the District of Arizona. “We thank our law enforcement partners, including Homeland Security Investigations, for continuing to use their legacy customs enforcement authority to protect the public.”
According to court documents, in July 2018, in response to the conflict between South Sudan’s Transitional Government of National Unity and opposition forces, the United Nations Security Council imposed an arms embargo on South Sudan. The Security Council has renewed the arms embargo every year since 2018, most recently in May 2023. Under U.S. law, specifically the AECA and ECRA, it is unlawful to export weapons and ammunition to South Sudan absent authorization in the form of a license from the U.S. Department of State or the Department of Commerce. It is the policy of the United States to deny licenses and approvals to export to South Sudan defense articles, such as automatic rifles, grenade launchers, and missile Stinger systems.
As alleged in court documents, between at least February 2023 and February 2024, Keech and Ajak sought to illegally purchase weapons and related export-controlled items from undercover law enforcement agents and smuggle those weapons and items from the United States to South Sudan through a third country. The defendants knew that South Sudan was subject to an arms embargo and that exporting weapons and ammunition from the United States to South Sudan without a license from the U.S. government was illegal and would violate U.S. law. For example, the defendants openly discussed the illegality of the transaction, expressed the need to be discreet, and agreed to pay a risk fee for the weapons because of the illegal nature of the arms sale. In addition, to facilitate the smuggling scheme, the defendants discussed disguising the weapons as humanitarian aid and paying bribes.
As part of the scheme, the defendants further sought to conceal from financial institutions and others the source and purpose of the funds used to purchase and smuggle the illicit arms. For example, the defendants agreed to an arms contract for nearly $4 million worth of weapons and related items and requested a “fake contract” in the same amount in “consulting services” and items, such as “communications equipment,” related to “human rights, humanitarian, and civil engagement inside South Sudan refugee camps.” The defendants then caused funds to be transferred through an intermediary company identified in the fake contract to complete the purchase.
If convicted, the defendants face up to 20 years in prison for conspiring to violate the AECA, up to 20 years in prison for conspiring to violate the ECRA, and up to 10 years in prison for smuggling goods from the United States.
The Department of Homeland Security’s Homeland Security Investigations, the Department of Defense’s Defense Criminal Investigative Service, the Department of the Army Criminal Investigation Division, and the Department of Commerce’s Office of Export Enforcement are investigating the case, with valuable assistance provided by the Department of the Army Criminal Investigation Division, the U.S. Attorney’s Office for the District of Maryland and the U.S. Attorney’s Office for the District of Utah.
The U.S. Attorney’s Office for the District of Arizona and the National Security Division’s Counterintelligence and Export Control Section 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.
Keech and Ajak complaintTucson Orthodontist and His Spouse Charged with Engaging in Scheme to Embezzle from Dental PracticeRead the Press Release
Tucson, Ariz. – A federal grand jury in Tucson returned a seven-count indictment last week against Dr. Andrew L. Kassman and his wife, Laurie Ann Kassman, of Tucson, for Conspiracy to Commit Wire Fraud and Wire Fraud.
Dr. Kassman was the former owner of a Tucson orthodontics practice. After selling the practice, Dr. Kassman and his wife continued as employees for the new owner. Dr. Kassman worked as an orthodontist, and Dr. Kassman’s wife continued as the office manager. The indictment alleges that, after the sale, Dr. Kassman kept his business bank account open. The Kassmans then engaged in an embezzlement scheme in which they diverted funds that belonged to the practice without the new owner’s knowledge or consent. To conceal the scheme, Laurie Kassman manipulated financial records in the practice’s record keeping system. The Kassmans embezzled at least $73,000.
A conviction for either charge - Conspiracy to Commit Wire Fraud or Wire Fraud - carries a maximum penalty of 20 years in prison and a $250,000 fine.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The United States Secret Service and the U.S. Postal Inspection Service conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-00789-TUC-RM
RELEASE NUMBER: 2024-025_Kassman# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Three Kanawha County Women Sentenced for Roles in Wire Fraud ConspiracyRead the Press Release
CHARLESTON, W.Va. – Three Kanawha County women were sentenced today for roles in a fraudulent scheme that used personal identification information stolen through the employment of two of the women with an office cleaning service.
Brittany King, 35, of East Bank, and Tabatha Deavers, 30, of Charleston, were each sentenced to five years in prison, to be followed by three years of supervised release, for wire fraud and aggravated identity theft. Amy Deavers, 51, of Glasgow, the mother of Tabatha Deavers, was sentenced to six months of incarceration, which she has already served, and three years of supervised release for conspiracy to commit wire fraud.
Amy Deavers and Tabatha Deavers were jointly ordered to pay $4,256.06 in restitution, with additional restitution amounts for Tabatha Deavers and King to be determined.
According to court documents and statements made in court, from approximately December 2020 through at least December 1, 2022, King and Tabatha Deavers unlawfully obtained the personal identification information of multiple individuals through their employment with a business that cleaned local office spaces. King and Tabatha Deavers rerouted the mail of their identity theft victims and opened lines of credit and bank accounts and obtained loans and credit cards in the names of their identity theft victims.
From approximately December 2020 through at least December 1, 2022, King and Tabatha Deavers stole money and property from individuals, companies, lenders, financial institutions and car dealerships with their scheme. King and Tabatha Deavers submitted a fraudulent change of address form to the United States Postal Service to reroute one victim’s mail to their Bridge Road apartment in Charleston on June 7, 2022. Tabatha Deavers attempted to purchase a vehicle from a Charleston area car dealership using the personal identification information of another victim on January 15, 2022. King fraudulently used another victim’s personal identification information to purchase a 2020 Chevrolet Malibu from a Charleston business on September 30, 2022.
King and Tabatha Deavers caused a loss of at least $260,239.19 to more than 10 victims as a result of their fraudulent schemes. Amy Deavers became involved in the wire fraud scheme after King and Tabatha Deavers were arrested and federally charged for their actions on December 5, 2022. King and Tabatha Deavers attempted to transfer $1,000 from one of the scheme’s fraudulent bank accounts to Amy Deavers on December 30, 2022. This account was opened to reroute the Department of Veterans Affairs disability benefits of one of the identity theft victims.
On January 30, 2023, Tabatha Deavers was incarcerated at the South Central Regional Jail when she spoke to Amy Deavers during a recorded jail phone call. Tabatha Deavers provided Amy Deavers with information during the call to access and transfer funds from the veteran victim’s fraudulent account.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Inspection Service, the United States Secret Service, the United States Department of Homeland Security-Homeland Security Investigations (HSI), the U.S. Department of Veterans Affairs Office of Inspector General, and the Kanawha County Sheriff’s Office.
Senior United States District Judge David A. Faber imposed the sentences. Assistant United States Attorneys Andrew D. Isabell, Jonathan T. Storage and Kathleen Robeson prosecuted the case.
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. 2:23-cr-14.
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Three Additional Individuals Charged in Twin Cities Fentanyl Distribution ConspiracyRead the Press Release
ST. PAUL, Minn. – Three additional individuals have been charged in a drug trafficking conspiracy that distributed fentanyl throughout the Twin Cities and surrounding areas, announced U.S. Attorney Andrew M. Luger.
According to court documents, between August 2022 through December 2023, Phyu Win Jame, 27, Amaya Tiffany-Nicole Mims, 23, and Da’Shawn Natori Domena, 24, and their previously charged co-defendants Cornell Montez Chandler, Jr., Robiel Lee Williams, Quijuan Hosea Bankhead, Stardasha Christina Davenport-Mounger, Fo’Tre Devine White, and Shardai Rayshell Allen, conspired to distribute fentanyl in Minnesota. Several defendants traveled to Phoenix to obtain fentanyl pills from suppliers, hid the pills inside stuffed animals, and mailed them to addresses in and around the Twin Cities. Law enforcement in Dakota, Ramsey, and Washington counties became aware of the trafficking and initiated a joint investigation, which resulted in the seizure of six packages containing over 30,000 grams of fentanyl pills.
All defendants are charged with one count of conspiracy to distribute fentanyl. White was also charged with one count of possession of a firearm as a felon and one count of possession of a machinegun.Jame and Mims made their initial appearances in U.S. District Court before a magistrate judge. Domena was arrested in Indiana and will make his initial appearance before a magistrate judge in the District of Minnesota at a later date.
This case is the result of an investigation conducted by U.S. Postal Inspection Service, Homeland Security Investigations, the Dakota County Drug Task Force, the Washington County Drug Task Force, and the Ramsey County Violent Crime Enforcement Team.
Assistant U.S. Attorney Campbell Warner is prosecuting the case.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Third Conspirator Pleads Guilty in Nearly $600,000 Charity Fraud SchemeRead the Press Release
RALEIGH, N.C. – A Fuquay-Varina man pled guilty to devising and executing a scheme to defraud the Potash Corporation of Saskatchewan (“PCS”) by conspiring to fraudulently obtain matching charitable contributions for the Boys and Girls Succeed (“BAGS”) organization. Dwayne Moorer West, age 60, faces up to 20 years in prison when sentenced later this year. Two of West’s co-conspirators pled guilty to the same charges on January 23, 2024, and are also facing up to 20 years behind bars.
“Many companies encourage their employees to support local charities by matching their employees’ charitable contributions. This defendant recruited PSC employees to make fake donations to his charity so he could fraudulently secure over a half-million dollars in matching funds from PSC. He then paid kickbacks to the employees,” said U.S. Attorney Michael Easley. “This defendant was driven by greed to take advantage of a charitable program meant to help those in need. He now faces federal prison.”
According to documents and information presented in court, Dwayne Moorer West owned BAGS, an organization that provided services to boys and girls in Wake County. Between 2010 and 2018, West conspired with Michael Lavern King, a PCS employee, and Martin Fareed Abdullah, a BAGS employee, to fraudulently obtain matched charitable contributions from PCS. To carry out this scheme, King and Abdullah solicited multiple PCS employees to aid and assist in the fraud. West obtained bank checks that fraudulently showed large charitable donations from each PCS employee to the BAGS foundation. The fraudulent checks were then used as donation receipts for submission to PCS as part of their matching charitable program. The PCS employees never made charitable donations to BAGS. Instead, they received a quarterly kickback from West, Abdullah, and King for the use of their employee information. In total, PCS matched nearly $600,000 in fraudulently obtained contributions to BAGS.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the plea. The United States Postal Inspection Service are investigating the case and Special Assistant U.S. Attorney Lisa K. Labresh is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-00091-BO.
Texas Man Admits to Federal Drug ChargeRead the Press Release
WHEELING, WEST VIRGINIA – Nolan Eugene McCray, age 39, of Cedar Lane, Texas, has admitted to possession with intent to distribute methamphetamine.
According to court documents and statements made in court, McCray was identified during an investigation into drug activity. A Wetzel County property where McCray had stayed was searched and officers found methamphetamine and $14,580 in cash. McCray was then taken into custody on outstanding warrants in Texas. While in jail, he made several phone calls to drug associates in the Northern Panhandle. Those conversations led officers to search another property, yielding more than 400 grams of methamphetamine and nearly one kilogram of heroin.
McCray faces up to 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Marshall County Drug Task Force, a HIDTA-funded initiative, and the Wetzel County Sheriff’s Office investigated.
Assistant U.S. Attorney Clayton Reid is prosecuting the case on behalf of the government.
U.S. Magistrate Judge James P. Mazzone presided.
Statement from U.S. Attorney’s Office on Passage of Secure DCRead the Press Release
The U.S. Attorney’s Office for the District of Columbia applauds the Council’s passage of the Secure DC legislative package. The provisions in this bill will provide crucial tools to police and to prosecutors as we collectively work together to hold those who commit crimes in our community accountable. And we are particularly grateful that the Council listened to our arguments related to DNA collection and developed a compromise position that allows for the earlier collection of DNA. This provision will both help solve violent crimes and prevent future crimes by removing these dangerous people from our community.
Stamford Man Sentenced to Prison for Theft of $800K from Trust AccountRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CURTIS SOLSVIG, 69, of Stamford, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 18 months of imprisonment, followed by three years of supervised release, for stealing more than $800,000 from a family trust he administered.
According to court documents and statements made in court, a married couple (the “victims”) created a trust for the primary benefit of their two children. In 1996, Solsvig, a relative of the victims, began serving as trustee of the trust. Beginning in 2011 and continuing for approximately eight years, Solsvig stole approximately $816,000 from the trust and used the funds for a variety of personal expenses. By the time his scheme concluded, less than $20 remained in the trust account.
Judge Nagala ordered Solsvig to pay restitution of $816,205.09.
On December 6, 2023, Solsvig pleaded guilty to one count of wire fraud.
Solsvig, who is released on a $250,000 bond, is required to report to prison on April 19.
This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Conor M. Reardon.
Stamford Man Pleads Guilty to Producing Child Sex Abuse ImagesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SERVIO BARROS-TERREROS, 57, of Stamford, pleaded guilty today in Bridgeport federal court to a child exploitation offense.
According to court documents and statements made in court, in December 2022, a minor female victim reported that, when she was nine and 10 years old, Barros-Terreros had sexually assaulted her multiple times. The victim reported that Barros-Terreros took sexually explicit pictures of her, and threatened to publish the pictures and show them to the victim’s mother if the victim told anyone. Barros-Terreros also instructed the victim to undress during video calls he initiated with the victim, during which he also engaged in sexually explicit conduct.
On January 12, 2023, Stamford Police arrested Barros-Terreros on state sexual assault and risk of injury offenses, and seized Barros-Terreros’ iPhone. Analysis of the iPhone revealed sexually explicit images of the minor victim, and images of Barros-Terreros engaging in sexually explicit conduct with the minor victim.
Barros-Terreros pleaded guilty to production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years. He is scheduled to be sentenced U.S. District Judge Robert N. Chatigny in Hartford on June 13.
Barros-Terreros has been detained since his arrest.
This matter has been investigated by Homeland Security Investigations (HSI) and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings with the assistance of the Office of the State’s Attorney for the Judicial District of Stamford-Norwalk.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
St. Charles County Man Sentenced for the Unlicensed Sales of FirearmsRead the Press Release
ST. LOUIS – A man from St. Charles County, Missouri who illegally sold hundreds of guns was sentenced Monday to five years of probation and 200 hours of community service.
Harry Trueblood, 69, is also now a convicted felon and is barred from possessing, let alone selling, firearms.
Trueblood pleaded guilty in November to one count of being an unlicensed firearms dealer. He admitted selling firearms at not less than 15 gun shows from January of 2021 through May of 2023 despite never having been licensed to deal in firearms. He continued selling even after agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) warned him that he was committing a crime. Trueblood purposely avoided obtaining a Federal Firearms License (FFL), Assistant U.S. Attorney Jennifer Szczucinski said in court Monday.
“ATF is a leader in the nation’s fight to disrupt violent crime for safer communities,” said Bernard Hansen, Special Agent in Charge of ATF’s Kansas City Field Division. “Trueblood was linked to selling over 250 firearms without a Federal Firearms License and over 40 crime guns were traced back him. It is firearm traffickers like this defendant that fuel violence in our communities by putting deadly weapons in the hands of people who commit violent crimes in our communities. Our Crime Gun Intelligence Center was at the center of this investigation, utilizing intelligence to identify this defendant and disrupting the supply of illegally transferred firearms and making our neighborhoods safer.”
Guns sold illegally by Trueblood were recovered at the scene of a homicide, a suicide and other shootings and from felons and a juvenile, Szczucinski said. One person with mental health issues severe enough that he was turned away from two gun stores found Trueblood and bought a firearm from him, Szczucinski said in court.
The ATF began investigating Trueblood after multiple guns recovered in unrelated crimes were traced back to him as the original purchaser. Trueblood sold AR-15-type pistols and handguns to undercover ATF agents before the ATF on Feb. 1, 2023 sent him a cease and desist letter ordering him to stop dealing in firearms without a license. Trueblood continued to sell guns, his plea agreement says.
The ATF investigated the case. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
Springfield Man Sentenced to 18 Years for Meth Trafficking, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man has been sentenced in federal court for using his residence for trafficking methamphetamine and for illegally possessing firearms.
Anthony Brandon, 51, was sentenced by U.S. District Judge Roseann A. Ketchmark on Monday, March 4, to 18 years in federal prison without parole. Brandon was sentenced as a career offender due to his prior felony convictions.
On March 15, 2022, Brandon pleaded guilty to one count of controlling a drug-involved premises and one count of possessing firearms in furtherance of a drug-trafficking crime.
On May 23, 2019, Springfield police officers executed a search warrant at Brandon’s residence. Officers found a Taurus 9mm handgun and five individually packaged bags of methamphetamine that weighed a total of more than 75 grams under a couch cushion in the living room, an Eagle Arms AR10 .62-caliber rifle in a bedroom closet, an extended firearm magazine with 32 rounds of 9mm ammunition in a dresser drawer in a bedroom, and miscellaneous ammunition.
Brandon admitted he was storing drugs at his residence for his source of supply. He also told investigators that he was expecting to receive methamphetamine as payment for storing the drugs.
Brandon’s extensive criminal history includes violent crimes and assault, possessing and distributing illegal drugs, theft, stealing, burglary, and robbery.
This case was prosecuted by Assistant U.S. Attorneys Cameron A. Beaver and Jessica R. Eatmon. It was investigated by the Springfield, Mo., Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Southern California Man Pleads Guilty to Fraud Charges Involving Scheme to Divert More Than $4.6 Million in San Francisco-Based InvestmentRead the Press Release
SAN FRANCISCO – Joon Woo Kim pleaded guilty in federal court to charges related to his role in two related multi-million-dollar fraud schemes—the first, a scheme to mislead investors to contribute to a fund he formed in San Francisco, and the second, a scheme to obtain a multi-million dollar business loans and line of credit by lying to a bank—announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp.
In his plea agreement, Kim, 57, of Montebello, Calif., admitted that he engaged in the first fraud scheme from June 2015 through at least March 19, 2022. Kim created an investment fund called the M5 Doctors Fund and induced investors to contribute to the fund by making false statements and omissions about the kinds of investments Kim would make while managing the fund’s assets. For example, Kim admitted that he advertised that he would invest assets of the M5 Doctors Fund in securities of Tesla, Inc. and electric vehicle companies. Nevertheless, rather than invest the funds as he promised, Kim admitted that he transferred nearly all M5 Doctors Fund assets, including funds from the liquidation of investments and the return on those investments, to CKR Enterprise, Inc., a wholesale food distribution company owned by, among others, Kim and his wife and operated by Kim and his wife.
Kim further admitted in his plea agreement that he acted with the intent to deceive and cheat investors and that in furtherance of the scheme he caused the creation of the M5 Doctors Fund and a separate management entity called M5 Management and he induced investors to invest in the M5 Doctors Fund and maintain their investment funds in the M5 Doctors Fund based on false statements and omissions regarding the kinds of investments he would make.
Kim admitted that without telling his investors he transferred nearly all M5 Doctors Fund assets to his business, CKR, and thereby defrauded investors out of $4,690,000. Further, Kim misled investors into believing that the M5 Doctors fund was solvent and engaged in investment activities. For example, Kim sent investors misleading quarterly reports suggesting that their money was invested in securities such as Tesla when in fact Kim had transferred nearly all investor money to CKR.
Kim further admitted that he engaged in a second fraud scheme in which he defrauded Hanmi Bank by applying for two loans for CKR, a $1,300,000 line of credit and a $3,200,000 business loan, that contained materially false and fraudulent representations and promises. As a result of these fraudulent representations and promises, Kim obtained the proceeds of these loans.
A federal grand jury charged Kim on June 27, 2023, with eight counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of bank fraud, in violation of 18 U.S.C. § 1344; and one count of making a false statement to a bank, in violation of 18 U.S.C. § 1014. Under the plea agreement, Kim pleaded guilty to one count of wire fraud and one count of making a false statement to a bank. If Kim complies with his plea agreement, the remaining counts will be dismissed at sentencing.
Kim was arrested on July 17, 2023, and subsequently released on a bond. His sentencing hearing is scheduled for June 24, 2024. The maximum statutory penalty for each of the wire fraud charges is 20 years in prison, and a fine of $250,000, plus restitution, if appropriate. The maximum statutory penalty for each of the bank fraud and making a false statement to a bank is 30 years in prison, and a fine of $1,000,000, plus restitution, if appropriate. The court also may order an additional term of supervised release to begin after a prison term as part of any sentence. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case with the assistance of Aarian Beti. The prosecution is the result of an investigation by the FBI.
Semi-Pro Rugby player indicted for Ponzi scheme involving false representations about cryptocurrency mining investmentsRead the Press Release
Seattle – A 36-year-old Seattle semi-pro rugby player was arrested on an indictment charging him with nine counts of wire fraud. Shane Donovan Moore operated Quantum Donovan LLC – a Washington company Moore claimed was purchasing and operating cryptocurrency mining equipment. In fact, the indictment alleges the company never invested in such equipment and operated as a Ponzi scheme, with the investments from later investors being used to pay off earlier investors. Moore made his initial appearance on the indictment Monday morning.
“Cryptocurrency investors can fall victim to all the same fraud tactics as any investor. Mr. Moore used a ‘Ponzi scheme,’ – a fraud that has been around for decades - and uses new investor money to pay off older investors until the scheme collapses,” said U.S. Attorney Tessa M. Gorman. “So far investigators have identified 38 known victims but believe there could be many more. We urge any such investors to contact the FBI.”
“According to the indictment, between January 2021 and October 2022, Moore allegedly made fraudulent promises to obtain investor money. Moore claimed both verbally and in writing that the invested money would be used to purchase computers for a cryptocurrency mining operation. He told investors they would receive 1% of their investment daily based on the work of the mining machines. However, Moore never purchased the mining machines. He comingled the investor money with his personal accounts and used some of those funds to live a lavish lifestyle. Some of the funds were used to purchase cryptocurrency so that a portion of the funds could be sent to investors to lull them into believing the cryptocurrency mining operation existed.
An analysis of accounts controlled by Moore show he purchased more than $820,000 in cryptocurrency from crypto.com during the course of the scheme. Other records show Moore transferring more than $1 million in cryptocurrencies from his Coinbase account to other Coinbase accounts.
Moore recruited investors in Utah, Oregon, Connecticut, New Jersey, and Washington. Many of the investors are people he knew from his rugby activities.
Wire fraud is punishable by up to 20 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Brian Wynne.