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4 March 2024
Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Stephen Dwayne Jackson, also known as “Stacks,” 38, of Huntington, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on August 18, 2023, law enforcement officers executed a search warrant at a Donald Avenue residence in Huntington. Officers encountered Jackson and seized a loaded Kel-Tech P-11 9mm pistol inside the residence.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Jackson knew he was prohibited from possessing a firearm because of his prior felony conviction for possession with intent to distribute 28 grams or more of cocaine base in United States District Court for the Southern District of West Virginia on August 22, 2011.
Jackson is scheduled to be sentenced on June 17, 2024, and faces a maximum penalty of 15 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Courtney L. Finney and Joseph F. Adams are prosecuting 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. 3:23-cr-178.
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Harrison County man sentenced for federal income tax violationRead the Press Release
MARSHALL, Texas – A Marshall man has been sentenced for a federal income tax violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Boyd Lynn Butcher, 51, pleaded guilty to aiding and assisting in the preparation of false tax returns and was sentenced to 36 months in federal prison by U.S. District Judge Rodney Gilstrap on Feb. 27, 2024. Butcher was also ordered to pay restitution in the amount of $317,252.00.
According to information presented in court, between 2015 and 2017, Butcher operated a tax preparer service under the name Boyd’s Tax Service. During that time, he prepared more than 450 federal tax returns for third parties in exchange for a fee even though he was not authorized by the IRS to prepare tax returns for others. When preparing many of those returns, Butcher created false or fraudulent information to generate unwarranted tax refunds. In total, IRS determined that Butcher caused a tax harm to the IRS of more than $317,252.00. For example, Butcher prepared a 2015 tax return using tax software designed for taxpayers who self-prepare returns. The return did not reflect the fact that Butcher had prepared and filed it on behalf of another individual. The return falsely and fraudulently stated that the taxpayer was entitled under the provisions of federal laws to claim car and truck expenses from a farming business. Butcher admitted that he knew that the statement in the return was false and fraudulent because the taxpayer did not have a farming business. Butcher admitted that he knew the return was false and that he had a duty to prepare returns in a lawful manner.
“Mr. Butcher’s fraudulent actions, which included fabricating deductions that were false and misleading, not only abused the trust of sixteen people who relied on Mr. Butcher’s services, but also undermined the very foundations of our tax and government systems,” said U.S. Attorney Damien M. Diggs. “Butcher effectively stole $300,000 from the American people. We appreciate the hard work of the Internal Revenue Service as we continue to work with our partners to uphold the values of justice and fairness.”
“Boyd Butcher took advantage of those who trusted him to prepare their tax by filing incorrect, misleading, and false information to inflate their returns,” said Christopher J. Altemus Jr., special agent in charge of the IRS Criminal Investigation’s Dallas Field Office. “Mr. Butcher’s actions amount to stealing from the Federal Government and his sentencing holds him accountable for his actions. In addition to the three years he will spend in prison, he must pay restitution of more than $300,000 for the tax harm done to his 16 victims.”
The case was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Dustin Farahnak.
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Fremont Business Owner Sentenced in Scheme to Use Foreign Bank Accounts to Avoid Millions of Dollars in Income TaxesRead the Press Release
SAN JOSE – Cuong Chi Quan, also known as “Roger Quan,” was sentenced last week to 10 months in prison for crimes related to a scheme to underreport his income by nearly $4.5 million, announced United States Attorney Ismail J. Ramsey and Kareem Carter, Special Agent in Charge of IRS–Criminal Investigation (IRS-CI)’s Washington D.C. Field Office. The sentence was handed down by the Honorable Edward J. Davila, United States District Judge.
On March 27, 2023, Quan was charged by felony information with one count each of willfully aiding and assisting in the preparation of a false tax return, in violation of 26 U.S.C. § 7206(2), and willfully violating foreign bank account reporting requirements, in violation of 31 U.S.C. §§ 5314 and 5322(a). On April 24, 2023, Quan pleaded guilty to both counts.
Quan, 56, of Milpitas, Calif., owned and managed QXQ, Inc. (“QXQ”), a manufacturer of circuit board test fixtures based in Fremont, Calif. QXQ shipped its products to customers in the United States and abroad. According to his plea agreement, Quan admitted that, since before 2014, QXQ maintained two sets of QuickBooks bookkeeping files. One set of books recorded sales to customers in the United States and all of QXQ’s expenses. The second set of books recorded sales to customers in Asia. Quan directed QXQ’s customers in Asia to wire their payments to QXQ’s bank accounts in New Zealand. The income and expenses of QXQ were reported on Quan’s individual Form 1040 tax returns. Quan admitted that he provided his income tax preparer only with the QuickBooks bookkeeping file that recorded QXQ’s sales to customers in the United States and all of its expenses. Further, Quan acknowledged he knowingly did not provide his income tax return preparer with, or disclose to the tax preparer the existence of, the bookkeeping file that recorded QXQ’s sales to customers in Asia or the statements from his and QXQ’s foreign bank accounts, which included significant interest. Quan agreed his actions omitted over $4 million in 2017 income, causing his 2017 federal income taxes to be underreported by $1,783,339.
The plea agreement contains further details of the scheme. For example, Quan admitted that he had signature authority over at least eleven foreign bank accounts in 2017. One of these accounts held a balance of at least $12,137,288.50 on April 15, 2018. Quan admitted that he knowingly did not report the existence of these accounts as required. Quan also did not report the interest earned in foreign bank accounts to his tax return preparer.
Judge Davila imposed restitution to the Internal Revenue Service of $8,167,733 for underreported federal income tax for the years 2014 through 2018. Judge Davila further imposed a fine of $35,000, and a 3-year term of supervised release.
Assistant U.S. Attorney Colin Sampson is prosecuting the case. The prosecution is the result of an investigation by the IRS-CI International Tax and Financial Crimes (ITFC) group, a team of Special Agents dedicated to investigating international tax crimes.
Franklin Man Charged with Dealing Firearms While on State Pretrial ReleaseRead the Press Release
BOSTON – A former Worcester resident, currently residing in Franklin, has been charged with dealing in firearms without a license and receiving a firearm while under indictment in state court for separate firearm offenses.
Juan Otero, 22, was charged with one count of dealing in firearms without a license and one count of receiving a firearm while under indictment. Otero was ordered detained following an initial appearance in federal court in Worcester on March 1, 2024 before Magistrate Judge David H. Hennessy.
According to the charging documents, between Nov. 27, 2023 and Jan. 23, 2024, Otero sold five firearms on four different occasions. It is alleged that one of the firearms was a Glock pistol with a machinegun conversion device, also known as a “Glock switch,” attached. Otero also allegedly sold large capacity magazines and multiple rounds of ammunition.
In 2022, Otero was indicted in Worcester Superior Court for multiple state crimes, including the unlawful possession of a large capacity weapon, unlawful possession of a loaded firearm, unlawful possession of a large capacity firearm and ammunition and attempted assault and battery.
Otero was on release pending trial on the state court charges at the time of his firearm sales in this matter.
The charges of dealing in firearms without a license and receipt of a firearm while under indictment both provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Feld Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Paul Saucier Interim Police Chief of the Worcester Police Department made the announcement today. Valuable assistance was provided by the Drug Enforcement Administration and the Franklin, Mansfield and Auburn Police Departments. Assistant U.S. Attorney Kaitlin J. Brown of the Worcester Branch Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four New Orleans Men Sentenced for Possessing Cars Stolen from Norfolk Southern Railyard and Federal Drug and Gun OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – DESMOND TAYLOR, age 27, QUINTRELL BROWN, age 20, NICKIE WHITLEY, age 35, and ERIN MURTHIL, age 21, all residents of New Orleans, were sentenced on February 27, 2024 by U.S. District Judge Jay C. Zainey after previously pleading guilty to multiple charges in a 20-count indictment.
TAYLOR was sentenced to 72 months imprisonment, followed by 3 years of supervised release, and a $200 mandatory special assessment fee for his convictions for being a felon in possession of a firearm, in violation Title 18, United States Code, Sections 922(g)(1) and 924(a)(8), and possession of a car stolen from the Norfolk Southern Railyard, in violation of Title 18, United States Code, Section 659.
BROWN was also sentenced to 72 months imprisonment, followed by 3 years of supervised release, and a $400 mandatory special assessment fee for his convictions for conspiracy to possess cars stolen from the Norfolk Southern Railyard, in violation of Title 18, United States Code, Section 371; possession of a car stolen from the Norfolk Southern Railyard, in violation of Title 18, United States Code, Section 659; possession with intent to distribute tapentadol, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
WHITLEY was sentenced to 84 months imprisonment, followed by 3 years of supervised release, and a $500 mandatory special assessment fee for his convictions for four counts of possessing a car stolen from the Norfolk Southern Railyard, in violation of Title 18, United States Code, Section 659, and being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
MURTHIL was sentenced to 65 months imprisonment, followed by 3 years of supervised release, and a $300 mandatory special assessment fee for his convictions for two counts of possessing a car stolen from the Norfolk Southern Railyard, in violation of Title 18, United States Code, Section 659, and possession of a machinegun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2).
According to court documents, TAYLOR possessed a 2023 Ford Explorer Timberline stolen from the Norfolk Southern Railyard and, while inside the stolen vehicle, possessed an American Tactical Model MilSport .223 milli-meter caliber firearm.
BROWN was arrested in the French Quarter on February 11, 2023. When NOPD officers attempted to stop him, he fled and, during the chase, threw a loaded Glock Model 19 handgun into a dumpster. When BROWN was apprehended, he had 60 tapentadol pills and over $2,500 in cash in his pockets. The next month, BROWN was captured on surveillance video occupying the same stolen Ford Explorer Timberline as TAYLOR.
WHITLEY participated in the theft of vehicles from the Norfolk Southern Railyard and was captured on surveillance video in March and April of 2023 driving multiple stolen vehicles, including a Ford F-150 Raptor. WHITLEY was also captured on video possessing a stolen Glock Model 19x handgun.
MURTHIL possessed two vehicles taken from the Norfolk Southern Railyard. He was captured on surveillance video driving a stolen Lincoln Aviator, which had a stolen Louisiana military honors license plate affixed to it. While driving the stolen Aviator, MURTHIL took a photograph holding a Glock Model 17 handgun with a machinegun conversion device and drum magazine attached to it. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted a function test of the gun and confirmed that it functioned as a machinegun.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
Founder of South Carolina Construction Firm Sentenced for Convictions Related to Kickback Payments, Wire Fraud, and Money LaunderingRead the Press Release
COVINGTON, Ky. – The founder of Berenyi, Inc., headquartered in Charleston, S.C., Antoine “Tony” Berenyi, 63, was sentenced on Friday, by U.S. District Judge David Bunning, to 30 months following his convictions for conspiracy to commit honest services wire fraud, wire fraud, and money laundering.
Berenyi was convicted by a federal jury in July 2023. According to the evidence presented at trial, beginning in late 2017, Berenyi entered into an illegal kickback agreement with Jaymin Vinson, an employee of Nucor Steel Gallatin, to deprive Nucor of both money and Vinson’s honest services as an employee. Berenyi and Vinson agreed that Vinson would help steer a $14,950,000 construction management contract, for a $650 million Nucor mill expansion project, to Berenyi’s company and provide other services on behalf of Berenyi within Nucor. This agreement was in exchange for Berenyi paying Vinson a 15% kickback on the contract and was reached without Nucor’s knowledge or approval. These secret kickback payments continued into 2019, totaling over $452,000 kicked back to Vinson.
In addition to the prison sentence, Berenyi was also ordered to pay a $50,000 fine, $753,625 in restitution, and $396,500 in a money judgement.
Vinson, who has also been convicted, is scheduled to be sentenced on March 14, and he faces up to 20 years in prison.
Under federal law, Berenyi must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for two years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentencing.
The investigation was conducted by the FBI. Assistant U.S. Attorneys James Chapman and Kyle Winslow are prosecuting the case on behalf of the United States.
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Former Venezuelan Military Official Pleads Guilty to Money Laundering and Bribery SchemeRead the Press Release
MIAMI – A former Venezuelan National Guard major pleaded guilty today to a money laundering scheme involving bribes to foreign officials and defrauding foreign financial institutions.
According to court documents, Nepmar Jesus Escalona Enriquez, 47, of Fort Lauderdale, Florida, and formerly of Venezuela, participated in an illegal scheme, facilitated by bribery and false pretenses, that involved knowingly submitting fraudulent applications to the Venezuelan currency regulation authority, also known as CADIVI, to deceive Banesco Bank, the Central Bank of Venezuela, and the Venezuelan customs authorities into releasing U.S. dollars to Escalona and his co-conspirators outside of Venezuela. The fraudulent applications were submitted to purportedly finance food imports into Venezuela but in reality, were an artifice to enrich the conspirators. This conduct resulted in the transfer of nearly $1.7 million in U.S. dollars from Banesco Bank into an account controlled by the conspirators.
Escalona further admitted that in at least one instance, the co-conspirators arranged for a series of bribes to be paid to officials in Venezuela to prevent the detection of their fraudulent scheme. Escalona also admitted in another instance to instructing a co-conspirator to wire transfer proceeds of the fraud, as well as funds constituting bribes, to four financial institutions in the United States. The five illicit wire transfers totaled approximately $420,847.
Escalona pleaded guilty to one count of money laundering conspiracy. He is scheduled to be sentenced on May 23 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, and Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration’s (DEA) Miami Field Division made the announcement.
The DEA’s Miami Field Division is investigating the case.
Assistant U.S. Attorney Andrea Goldbarg for the Southern District of Florida and Trial Attorney Emily Cohen and Deputy Chief Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under Case No. 22-CR-20423.
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Former Venezuelan Military Official Pleads Guilty to Money Laundering and Bribery SchemeRead the Press Release
A former Venezuelan National Guard major pleaded guilty today to a money laundering scheme involving bribes to foreign officials and defrauding foreign financial institutions.
According to court documents, Nepmar Jesus Escalona Enriquez, 47, of Fort Lauderdale, Florida, and formerly of Venezuela, participated in an illegal scheme, facilitated by bribery and false pretenses, that involved knowingly submitting fraudulent applications to the Venezuelan currency regulation authority, also known as CADIVI, to deceive Banesco Bank, the Central Bank of Venezuela, and the Venezuelan customs authorities into releasing U.S. dollars to Escalona and his co-conspirators outside of Venezuela. The fraudulent applications were submitted to purportedly finance food imports into Venezuela but in reality, were an artifice to enrich the conspirators. This conduct resulted in the transfer of nearly $1.7 million in U.S. dollars from Banesco Bank into an account controlled by the conspirators.
Escalona further admitted that in at least one instance, the co-conspirators arranged for a series of bribes to be paid to officials in Venezuela to prevent the detection of their fraudulent scheme. Escalona also admitted in another instance to instructing a co-conspirator to wire transfer proceeds of the fraud, as well as funds constituting bribes, to four financial institutions in the United States. The five illicit wire transfers totaled approximately $420,847.
Escalona pleaded guilty to one count of money laundering conspiracy. He is scheduled to be sentenced on May 23 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, and Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration’s (DEA) Miami Field Division made the announcement.
The DEA’s Miami Field Division is investigating the case.
Trial Attorney Emily Cohen and Deputy Chief Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Andrea Goldbarg for the Southern District of Florida are prosecuting the case.
Former Antelope Valley Doctor Sentenced to More Than 3 Years in Federal Prison for Illegally Issuing Prescriptions During Telehealth SessionsRead the Press Release
LOS ANGELES – A former Antelope Valley physician was sentenced today to 37 months in federal prison for illegally dispensing prescriptions for often-abused controlled substances – including opioid-based medications – during telemedicine sessions with “patients” from across the United States.
Raphael Tomas Malikian, 39, who resides in Llano and Palmdale, was sentenced by United States District Judge Dale S. Fischer, who also ordered him to pay a fine of $20,000.
Malikian pleaded guilty in October 2023 to one count of aiding and abetting the acquisition of a controlled substance by fraud and one count of distribution of oxycodone.
The Medical Board of California suspended Malikian’s medical license in November 2021. His license expired in November 2022.
From at least December 2019 to August 2021, Malikian was a licensed physician in California and, in this role, was authorized by the Drug Enforcement Administration (DEA) to prescribe medication. Malikian also owned and operated Happy Family Medicine, a medical clinic that was advertised as being in a co-working space in the Hollywood, but primarily offered telehealth services via telephone or text message communications.
Malikian issued prescriptions for controlled substances to customers without first obtaining the person’s full medical history, conducting a physical examination, requiring medical testing, or utilizing diagnostic tools. Malikian did not verify his customers’ identities before prescribing controlled substances, and he allowed customers to obtain prescriptions in the names of others.
He also worked with two co-conspirators, who provided Malikian with false names, addresses, dates of birth, and Malikian issued controlled substance prescriptions accordingly, which the co-conspirators then filled and re-sold on the black market.
Many of Malikian’s fraudulent controlled substance prescriptions contained notes on the prescriptions or accompanying documentation that falsely urged pharmacies not to verify such prescriptions because medications were emergently needed and the failure to dispense could be life threatening because of the COVID-19 pandemic.
Malikian issued hundreds of false prescriptions for liquid promethazine with codeine during this period – including to people he knew were fictitious patients and which totaled more than 82 liters – and directed them to be sent to various pharmacies across the nation for co-conspirators to obtain.
From April to July of 2020, Malikian prescribed to a buyer 702 pills of 10 milligrams oxycodone and 240 milliliters of promethazine with codeine. The customer, in fact, was an undercover law enforcement officer. Malikian issued each prescription to this buyer without conducting proper medical evaluations or verifying the buyer’s identity and was performed outside the scope of professional practice and without a legitimate medical purpose.
In addition, from May to July of 2020, Malikian prescribed to a customer – who also was an undercover law enforcement officer – 234 pills of the painkiller Norco, which contained a total of 2,340 milligrams of the opioid hydrocodone, and 180 pills of alprazolam, an anxiety medication sold under the brand name Xanax. Once again, Malikian issued each prescription to this buyer without conducting proper medical evaluations or verifying the buyer’s identity and was performed outside the scope of professional practice and without a legitimate medical purpose.
“Considering the nature and circumstances of these offenses, there is no question that [Malikian’s] criminal conduct is serious and that the scope of [his] diversion scheme was expansive,” prosecutors argued in a sentencing memorandum. “The amount of drugs that [Malikian] prescribed without any medical justification is substantial and contributed to this country’s opioid crisis.”
The DEA investigated this matter. The California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse provided substantial assistance.
Assistant United States Attorney Brittney M. Harris of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
Federal Jury Finds Conspirators Guilty of Embezzling Hundreds of Thousands of Dollars from Higher Education InstitutionRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Andrea Mitchell (54, Tampa) and Lester Best (53, Tampa) guilty of conspiring to commit wire fraud and 22 substantive counts of wire fraud. Mitchell was also found guilty of two counts of aggravated identity theft. Mitchell and Best each face a maximum penalty of 20 years in federal prison on each of the conspiracy and fraud counts. Mitchell faces an additional 2-year mandatory consecutive sentence on the aggravated identity theft counts. A sentencing date has not yet been set. Mitchell and Best were indicted in December 2022.
According to testimony and evidence presented at trial, Mitchell served as a financial services manager at a higher education institution in the Middle District of Florida. Mitchell, Best, and their coconspirators used her position to embezzle hundreds of thousands of dollars from the institution. Mitchell stole the identities of current and former students at the higher education institution and then used their student identification numbers to access their student sponsorship accounts. Mitchell identified refunds in these accounts made by the higher education institution to a tuition management business and/or a college savings program on behalf of the students and, thereby, located entries reflecting illusory balances in the students’ sponsorship accounts. Mitchell used the illusory balances to create the appearance of funds to back fraudulent checks. She then caused the higher education institution to issue the checks in the names of multiple coconspirators who had been recruited by Best to negotiate the bogus checks. None of these coconspirators were students at the higher education institution. The coconspirators cashed or deposited the fraudulent checks at various financial institutions and then shared the proceeds. As a result, the higher education institution lost more than $835,000.
This case was investigated by the Tampa Police Department, the Federal Bureau of Investigation, and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Candace Garcia Rich.
Federal Jury Convicts Mescalero Man of Domestic AssaultRead 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’s Albuquerque Field Office, announced a federal jury returned a guilty verdict against Theodore Ian Chavez, IV for assault of an intimate partner by strangling. Chavez, 26, of Mescalero, and an enrolled member of the Mescalero Apache Tribe, was detained pending sentencing which has been set for June 12, 2024.
A federal grand jury issued an indictment against Chavez on Nov. 15, 2023. According to evidence presented at trial and other publicly available court records, in the early morning hours of August 6, 2023, Chavez strangled and assaulted his intimate partner, Jane Doe, multiple times, resulting in the loss of consciousness and visible bruises. He also shoved Jane Doe into a door, resulting in bruises and a head injury. After the assault, Jane Doe sought medical attention.
When interviewed by law enforcement officers, Chavez confirmed that he and Jane Doe had been intimate partners for several years. Although he initially denied and downplayed the incident which resulted in the assault, he eventually admitted that he had physically restrained Jane Doe following an argument. Chavez admitted that he likely caused the bruising on Jane Doe’s body, including the bruising on Jane Doe’s neck, while attempting to restrain Jane Doe. Chavez stated he was attempting to restrain Jane Doe with a forearm across the chest, but that his forearm slipped and was on Jane Doe’s throat, impeding her ability to breathe. When asked about the signs of manual strangulation, Chavez conceded that he put his hands on Jane Doe’s throat but denied any intention or occurrence of strangulation.
At sentencing, Chavez faces 10 years in prison.
The Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case with the assistance of the Bureau of Indian Affairs. Assistant U.S. Attorneys Joni Stahl and J. Kirk Williams are prosecuting the case.
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Estill County Woman Sentenced to 165 Months for Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky. – An Irvine, Ky., woman, Ladonna Susan Riddell, 36, was sentenced on Monday, to 165 months in federal prison, by U.S. District Judge Karen Caldwell, for possession with the intent to distribute 50 grams or more of methamphetamine.
According to her plea agreement, on July 29, 2022, law enforcement responded to report of a suspected drug transaction. During the investigation, law enforcement located Riddell, discovered she had an active arrest warrant, and took her into custody. A search of her vehicle uncovered 163.32 grams of methamphetamine, which Riddell admitted she intended to distribute.
Under federal law, Riddell must serve 85 percent of her prison sentence. Upon her release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge, DEA, Louisville Field Division; and Sheriff Chris Flynn, Estill County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the DEA and Estill County Sheriff’s Office. Assistant U.S. Attorneys Ron Walker and Brittany Baker are prosecuting the case on behalf of the United States.
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District Man Sentenced to Five Years in Prison for Kidnapping and Assaulting a MinorRead the Press Release
WASHINGTON – Donte Johnson, 38 years old, of Washington, D.C., was sentenced, in the Superior Court of the District of Columbia on March 1, 2024, to 60 months in prison on one count of kidnapping, announced by U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
According to the evidence, on May 20, 2023, outside of the Deanwood Metro Center located in the 4700 block of Minnesota Ave, Northeast, the female victim (then 17 years of age) was commuting home from work and traveled by train to the metro station where her mother and sisters were going to pick her up in their car. The victim was crossing the street to go to her mother’s car when the defendant came from behind her and wrapped his arm around her neck. The victim attempted to fight the defendant off of her, but he pulled her to the ground and then pressed his body on her. The defendant then tried to pull the victim’s pants down. The victim was not able to break free of the defendant until two eyewitness strangers came to her rescue and were able to pull the defendant off of the victim. Shortly after the incident officers arrived and witnesses identified the defendant, who was still on scene, as the individual who assaulted the victim. He was placed under arrest. On September 26, 2023, the defendant plead guilty to one count of kidnapping, without any caps or other restrictions on the government’s recommendation at sentencing.
The Honorable Marisa J. Demeo sentenced Johnson to 60 months of incarceration, to be followed by five years of supervised release. Johnson will be required to register as a sex offender for 10 years after his released.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Marco Crocetti, who investigated and prosecuted the case.
Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Derek Romel Glaze, also known as “Zeke,” 32, of Detroit, Michigan, pleaded guilty today to distribution of 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
According to court documents and statements made in court, on December 1, 2022, Glaze sold approximately 110 grams of methamphetamine to a confidential informant in a vehicle on the 800 block of Marcum Terrace in Huntington. Glaze admitted to the transaction and to arranging it with the confidential informant beforehand.
Glaze further admitted to selling approximately 11 grams of fentanyl to a confidential informant on November 30, 2022, and approximately 29.5 grams of methamphetamine to a confidential informant on January 17, 2023.
Law enforcement officers arrested Glaze on February 7, 2023. Glaze admitted that he told investigators that he received methamphetamine and fentanyl on consignment and distributed it in the Huntington area. Glaze further admitted that he distributed at least 20 pounds of methamphetamine during the preceding six months.
Glaze is scheduled to be sentenced on June 18, 2024, and faces a mandatory minimum of five years in prison, at least four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff's Office.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting 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. 3:23-cr-20.
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Derry Woman Pleads Guilty to COVID-19 FraudRead the Press Release
CONCORD – A Derry woman pleaded guilty today in federal court for her role in attempting to fraudulently obtain $2.5 million in COVID-19 pandemic relief funds, U.S. Attorney Jane E. Young announces.
Tammy Dodge, 43, pleaded guilty to bank fraud. U.S. District Court Judge Paul J. Barbadoro scheduled sentencing for June 10, 2024. Dodge’s husband and co-conspirator, David Dodge, pled guilty on February 20, 2024, and is scheduled to be sentenced on May 29, 2024.
The Dodges claimed to own or control multiple businesses in New Hampshire and Massachusetts, including Teacher Tammy (a/k/a Teacher Tammy’s), Optimized Operations, and Business Done Right. In reality, these companies had no operations and served no business purpose.
In total, Tammy Dodge and her husband submitted 30 fraudulent applications for Paycheck Protection Program (PPP) loans from private lenders, Economic Injury Disaster Loans (EIDLs) from the Small Business Administration, and pandemic relief grants from the New Hampshire Governor’s Office for Emergency Relief and Recovery (GOFERR) and the Massachusetts Growth Capital Corporation (MGCC).
Tammy Dodge used fake supporting documents in the applications. For example, on January 25, 2021, she applied for a $35,833 PPP loan for Teacher Tammy. She provided the lender a purported check and February 2020 bank statement for a TD Bank account in the name of Teacher Tammy. However, the account was under the defendant’s own name and did not even exist until June 2020. The defendant also provided fake tax documents.
Overall, because lenders detected most of the fraudulent applications, the Dodges were able to obtain $219,323.34 out of the approximately $2.5 million they sought. They misused some of the fraudulently obtained funds.
The charging statute provides a sentence of no greater than 30 years in prison, 5 years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Treasury Inspector General for Tax Administration led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Defendant Posed as a Police Officer to stop the Victims and then Carjacked and Assaulted Victims to Rob the Victims or their EmployersRead the Press Release
Baltimore, Maryland – Davonne Tramont Dorsey, age 30, of Gwynn Oak, Maryland pleaded guilty on March 1, 2024, to carjacking and to using, carrying and possessing a firearm during a crime of violence. Dorsey also admitted that he and other conspirators kidnapped victims and attempted to rob them, using force and threats of force.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Richard Worley of the Baltimore Police Department; Chief Robert McCullough of the Baltimore County Police Department; Harford County Sheriff Jeffrey R. Gahler; and Harford County State’s Attorney Alison Healey.
According to his plea agreement, in May and August 2021, Dorsey and other conspirators planned to impersonate police officers to stop vehicles, carjack and abduct victims, and use force and threats of force to steal cash Dorsey and other conspirators posed as police officers, using police vests, badges, and a law enforcement-type light bar, to stop the victims and their vehicles, and brandished firearms and a blow torch during the kidnappings.
As detailed in the plea agreement, on May 15, 2021, driving a Ford Fusion with police-style lights, Dorsey and other members of the conspiracy drove to Edgewood, Maryland to abduct and rob J.H. Dorsey and the others were wearing police-style vests with “police” written on them, masks, and gloves. Around midnight on May 15-16, 2021, J.H. left Edgewood, driving a 2022 Toyota Camry. The members of the conspiracy used the police-style lights to stop J.H’s vehicle. Dorsey and the conspirators, armed with firearms, approached J.H.’s car and identified themselves as police. The conspirators told J.H. that he had an outstanding warrant, and that he was under arrest. The conspirators put J.H. in handcuffs, put duct tape over his eyes and mouth, bound his feet, and put him in the back of their vehicle. J.H. was then driven away in the Ford Fusion with two of the conspirators while two other members of the conspiracy followed in J.H.’s Camry. While JH was in the Ford Fusion, the conspirators demanded $10,000, told J.H. that they knew where he lived and that they would kill his parents if he did not cooperate. One of the conspirators used a blow torch to burn J.H.’s chest multiple times when J.H. did not answer questions. The conspirators took J.H.’s necklace, wallet, phone, and car keys. After more than 5 hours of driving and demanding money, the conspirators released J.H. in Baltimore City at approximately 5:20 a.m.
Further, Dorsey admitted that on August 2, 2021, he and two co-conspirators approached victim A.K. as she left the check cashing business where she worked. The conspirators, wearing police vests and badges, brandished firearms to kidnap victim A.K. and placed her into the rear of one of their vehicles equipped with law enforcement-type lights. The driver was holding a blowtorch with a blue fuel canister, and A.K. observed a bottle of bleach on the floor in the back of the car. After A.K. entered the vehicle, the men bound A.K.’s wrists behind her back with zip-ties and used black duct tape to affix a blindfold over her eyes. One of the men stated to A.K., “We don’t burn sisters.”
According to the plea agreement, while in the vehicle, the men took A.K.’s wallet, phone, and keys, which included the keys to the check cashing business. The men demanded that A.K. provide access to the check cashing business, including demanding the A.K. provide the men with access codes, safe codes, and the amount of money in the safe at the business. The men demanded information from A.K. for nearly 6 hours, then released A.K. in Edmonson Village in Baltimore City at approximately 1:00 a.m. Before they drove away, the men instructed A.K. not to remove her face covering until they had driven away.
Dorsey and the government have agreed that, if the Court accepts the guilty plea, a sentence of 15 years in federal prison is the appropriate disposition of the case. U.S. District Judge Matthew J. Maddox has scheduled sentencing for June 10, 2024, at 10:00 a.m.
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 make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
United States Attorney Erek L. Barron commended the FBI, the Baltimore Police Department, the Baltimore County Police Department, the Harford County Sheriff’s Office, and the Harford County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys Paul E. Budlow and Spencer Todd, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Court Sets Preliminary Hearing for Diego Ibarra at Initial AppearanceRead the Press Release
MACON, Ga. – Diego Ibarra, a Venezuelan citizen charged with possessing a fraudulent green card in Athens, Georgia, on Feb. 23, will have a standard preliminary hearing regarding probable cause and the government’s motion to detain on Thursday, March 7, at 10 a.m., as ordered by a U.S. Magistrate Judge at his initial appearance in federal court this afternoon.
Diego Ibarra, 28, of Venezuela, is charged by criminal complaint with possession of a fraudulent document. If convicted, Ibarra faces a maximum of ten years in prison. Diego Ibarra is the brother of Jose Antonio Ibarra, 26, of Venezuela, who is facing state charges for malice murder, felony murder, aggravated battery, aggravated assault, false imprisonment, kidnapping, hindering a 911 call and concealing the death of another in the homicide of Laken Hope Riley.
The case is being investigated by Homeland Security Investigations (HSI) with critical assistance from FBI, GBI, Athens-Clarke County Police Department, University of Georgia Police Department and Clarke County Sheriff’s Office.
Assistant U.S. Attorney Mike Morrison is prosecuting the case.
A complaint is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
Chief Executive Officer of A Las Vegas-Based Company Convicted for Multimillion-Dollar Fraud and Money Laundering SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MARTIN MIZRAHI, a/k/a “Marty Mizrahi,” was convicted of wire fraud, bank fraud, money laundering, aggravated identity theft, and other offenses for his participation in multiple schemes to defraud banks and credit card companies of almost $8 million and to launder more than $4 million in fraud and illegal narcotics proceeds. The verdict followed a 12-day trial before U.S. District Judge J. Paul Oetken.
U.S. Attorney Damian Williams said: “Martin Mizrahi brazenly used his company as a front to launder millions of dollars in drug and fraud proceeds and to deceive credit card companies into processing additional millions of dollars in sham charges. The jury’s unanimous verdict sends a resounding message that individuals who steal and introduce illicit funds into the U.S. financial system will be held accountable.”
According to the evidence presented in court during the trial:
From at least in or about February 2021 through at least in or about June 2021, MIZRAHI and his co-defendants participated in multiple schemes to defraud banks and credit card companies and to launder narcotics proceeds in addition to the fraud proceeds received.
Beginning in or about February 2021, MIZRAHI began accepting bulk cash narcotics proceeds, which he laundered for individuals associated with a Mexican-based cartel by converting the money into Bitcoin and then sending it to anonymous cryptocurrency wallets provided to him by co-conspirators. In addition, MIZRAHI laundered fraud proceeds sent to his company by wire transfer, which he also converted into cryptocurrency before sending it to anonymous cryptocurrency wallets. Those funds were obtained through, among other things, a business email compromise scheme in which a New York City-based non-profit organization had more than $3 million dollars stolen from it by hackers. Between February and June 2021, MIZRAHI laundered a total of more than $4 million in fraud and narcotics proceeds.
In addition, between April and June 2021, MIZRAHI participated in a credit card fraud scheme in which he ran nearly $8 million in fraudulent credit card charges through his company. Those charges were run on multiple credit cards issued in the names of third parties, some of which had been stolen, and without any legitimate work being done or services being provided. As part of the scheme, MIZRAHI prepared false invoices which he sent to banks and credit card companies to justify the charges.
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MARTIN MIZRAHI, 51, of Las Vegas, Nevada, was convicted of (i) conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison; (ii) wire fraud, which carries a maximum sentence of 20 years in prison; (iii) bank fraud, which carries a maximum sentence of 30 years in prison; (iv) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; (v) money laundering, which carries a maximum sentence of 20 years in prison; (vi) aggravated identity theft, which carries a mandatory minimum sentence of two years in prison to run consecutively to any other prison terms imposed; and (vii) conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the Federal Bureau of Investigation for its outstanding work on the investigation.
The prosecution of this case is being handled by the Office’s White Plains Division and the Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin Klein and Emily Deininger are in charge of the prosecution, with the assistance of Paralegal Specialists Dean Iannuzzelli and Nerlande Pierre.
Canadian Man Pleads Guilty to $30 Million Magazine Fraud Scheme Targeting EldersRead the Press Release
MINNEAPOLIS – A Canadian man has pleaded guilty on the first day of trial to his role in a $30 million nationwide telemarketing fraud scheme that targeted elderly and vulnerable victims, announced U.S. Attorney Andrew M. Luger.
According to court documents, Abdou Diallo, also known as Abdou-Rahmane Diallo, 36, of Montreal, Quebec, was a co-owner and operator of Readers Services, a Canadian-based company that carried out a telemarking fraud scheme. From 2011 through 2020, Diallo and other participants of the fraud scheme targeted people who had previously been victimized by fraudulent magazine companies and were currently being billed by one or more fraudulent magazine companies on an ongoing basis—and used this vulnerability to victimize them all over again through promises of being able to cancel their unwanted magazine subscriptions. Diallo pretended to be from the “magazine cancellation department” and offered to pay off the victims’ “outstanding balance” and cancel their existing magazine subscriptions in exchange for a large, lump-sum payment. In reality, the victims did not owe Diallo or his company any money and Diallo had no power or ability to cancel the victims’ existing magazine subscriptions or any outstanding balances. As a result of this “piggyback” fraud scheme, Diallo and other participants in the fraud scheme defrauded more than 20,000 victims—many of whom were elderly and vulnerable—across the United States out of approximately $30 million.
Diallo pleaded guilty today in U.S. District Court before Judge John R. Tunheim to two counts of wire fraud. A sentencing hearing is scheduled for June 5, 2024.
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. Additional assistance was provided by Homeland Security Investigations, the Treasury Inspector General for Tax Administration (TIGTA), and the Minnesota Attorney General’s Office.
Assistant U.S. Attorneys Harry M. Jacobs and Garrett S. Fields are prosecuting the case.
California Man Arrested for Smuggling Potent Greenhouse Gases into the United StatesRead the Press Release
Michael Hart of San Diego was arrested and charged with smuggling greenhouse gases into the United States from Mexico and then selling them for profit, in violation of regulations intended to curb the use of greenhouse gases and slow climate change.
This is the first prosecution in the United States to include charges related to the American Innovation and Manufacturing Act of 2020 (AIM Act). The AIM Act prohibits the importation of hydrofluorocarbons (HFCs), commonly used as refrigerants, without allowances issued by the Environmental Protection Agency (EPA).
“It is illegal to import certain refrigerants into the United States because of their documented and significantly greater contribution to climate change,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We are committed to enforcing the AIM Act and other laws that seek to prevent environmental harm.”
“The illegal smuggling of hydrofluorocarbons, a highly potent greenhouse gas, undermines international efforts to combat climate change under the Kigali Amendment to the Montreal Protocol,” said David M. Uhlmann, EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance. “Anyone who seeks to profit from illegal actions that worsen climate change must be held accountable. This arrest highlights the significance of EPA’s climate enforcement initiative and our efforts to prevent refrigerants that are climate super pollutants from illegally entering the United States.”
“This office is at the forefront of environmental prosecutions, and today is a significant milestone for our country,” said U.S. Attorney Tara McGrath for the Southern District of California. “This is the first time the Department of Justice is prosecuting someone for illegally importing greenhouse gases, and it will not be the last. We are using every means possible to protect our planet from the harm caused by toxic pollutants, including bringing criminal charges.”
According to the EPA, HFCs are potent greenhouse gases that cause climate change and are used in applications such as refrigeration, air-conditioning, building insulation, fire extinguishing systems, and aerosols. The global warming potential of an HFC can be hundreds to thousands of times more potent than carbon dioxide. The use of HFCs has been rapidly increasing worldwide due to the global phaseout of ozone-depleting substances and increased demand for refrigeration and air conditioning.
The indictment alleges that Hart purchased refrigerants in Mexico and smuggled them into the United States in his vehicle, concealed under a tarp and tools. According to the indictment, Hart posted the refrigerants for sale on OfferUp, Facebook Marketplace and other sites, and sold them for a profit.
In addition to greenhouse gases, the indictment alleges Hart imported HCFC 22, an ozone-depleting substance regulated under the Clean Air Act. The Montreal Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol) is a treaty adopted in 1987 and ratified by virtually every country. The Montreal Protocol required the gradual phase out of ozone depleting substances, with different timetables for developed countries like the United States and developing countries like Mexico. In the United States, the Montreal Protocol was implemented in 1990 by an addition to the Clean Air Act, which covers Stratospheric Ozone Protection. That addition identified HCFC 22 as a regulated ozone depleting substance. Before 2020, EPA regulations that governed ozone-depleting substances made it illegal for anyone to import a regulated ozone-depleting substance in an amount exceeding that individual’s consumption allowance, subject to certain exceptions. On January 1, 2020, consumption allowances for HCFC 22 were eliminated and it became illegal to import HCFC 22 for any purpose other than for use in a process resulting in their transformation or their destruction.
The Kigali Amendment to the Montreal Protocol is another international agreement designed to phase down the production and consumption of greenhouse gases such as HFCs, which are commonly used alternatives to ozone-depleting substances and are already controlled under the Montreal Protocol. The Kigali Amendment seeks to phase down the production and consumption of HFCs by 80-85% by 2047. The AIM Act authorized the EPA to phase down the production and consumption of HFCs in a stepwise manner. As part of the AIM Act, Congress added an additional list of regulated substances, which include HFC 32, HFC-125, HFC-134, HFC-134a, HFC 143 and HFC 143a. Refrigerants marketed as HFC 404a, 407a, 407c and 410a contain these regulated substances. The listed HFCs are some of the most commonly used HFCs and all are saturated, meaning they have only a single bond between their atoms and therefore have longer atmospheric lifetimes. Beginning on January 1, 2022, EPA regulations prohibit any person from importing bulk regulated HFCs, except by expending, at the time of import, a consumption or application-specific allowance issued by the EPA. No person may sell or distribute, or offer for sale or distribution, any regulated HFC that was imported illegally.
Senior Trial Attorney Stephen Da Ponte of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Melanie K. Pierson for the Southern District of California are prosecuting the case.
Bluefield Man Sentenced for Federal Fraud CrimeRead the Press Release
BLUEFIELD, W.Va. – Matthew Huffman, 37, of Bluefield, was sentenced today to three years of federal probation, including 90 days on home detention with location monitoring, and ordered to pay $45,258.51 in restitution for theft or embezzlement in connection to healthcare services. Huffman admitted to stealing from the Southern Highlands Community Mental Health Center while employed as its chief substance use disorder officer.
According to court documents and statements made in court, between October 2022 and January 2023, Huffman embezzled money from Southern Highlands including more than $5,000 it received from the Comprehensive Opioid, Stimulant, and Substance Use Program (COSSUP). Southern Highlands is a non-profit medical treatment center that offers a variety of services including addiction treatment. COSSUP grants are distributed, in part, to treat and support those impacted by illicit substance use and misuse.
Huffman admitted that he forged signatures required to approve the use of COSSUP grants and other funds, and also used the names of patients and consumers no longer receiving services from Southern Highlands on the necessary forms. Huffman further admitted that he embezzled these funds for his personal gain, using the money to pay his utility bills, vehicle loan payments and to purchase gift cards and prepaid debit cards.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Mercer County Sheriff’s Department.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorneys Owen Reynolds and Andrew D. Isabell 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. 1:23-cr-137.
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Bakersfield Resident Pleads Guilty to Drug ConspiracyRead the Press Release
FRESNO, Calif. — Jose Luis Zambrano, 40, of Bakersfield, pleaded guilty today to conspiring to distribute and possess with intent to distribute methamphetamine and heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from October 2016 to January 2017, Zambrano sold a pound of methamphetamine and nearly 12 ounces of heroin in four separate transactions involving a confidential source. A federal wiretap also revealed that Zambrano was the source of supply for Manuel Teodoro Aros, 49, of Santa Maria, from whom law enforcement seized another 2.5 pounds of methamphetamine in March 2017. In addition, the wiretap led to the seizure in June 2017 of another 4 ounces of heroin and nearly 6 pounds of methamphetamine intended for Zambrano.
Zambrano was brought to federal court pursuant to a writ following his conviction in May 2022 in Kern County Superior Court for solicitation to commit murder.
Aros previously pleaded guilty to his involvement in conspiring with Zambrano and was sentenced to 13 years and eight months in prison.
Zambrano is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on June 17, 2024. Zambrano faces a maximum statutory penalty of life in prison, a mandatory minimum term of 10 years in prison, and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Drug Enforcement Administration and the Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit Justice.gov/OCDETF.
Arion Man Sentenced to Ten Years in Federal Prison for Illegal Possession of a Firearm by a Felon.Read the Press Release
A man, who was found with a firearm after being a convicted felon, was sentenced February 29, 2024, to 10 years in federal prison. Kevin DeWolf, age 34, from Denison, Iowa, received the prison term after a September 21, 2023, guilty plea to possession of a firearm by a felon. Shortly after being indicted for the firearm charge, DeWolf set a vehicle on fire in Crawford County, attempting to fraudulently collect the insurance proceeds.
DeWolf was previously convicted of manufacture, deliver, or possess with intent to manufacture or deliver controlled substance, in the Iowa District Court for Crawford County, Iowa on or about July 15, 2022. DeWolf also has a prior assault conviction.
DeWolf was sentenced in Sioux City by United States District Court Judge Leonard T. Strand and was sentenced to 120 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. DeWolf is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and was prosecuted by Assistant United States Attorney Ron Timmons.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-4021.
Follow us on Twitter @USAO_NDIA.
Antisemitic Threats to Kill Yield Prison SentenceRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Sean Pietila, 20, of Pickford, Michigan was sentenced to 12 months and one day in federal prison for making a series of violent threats on June 1-2, 2023, to kill Jewish people. At the time he communicated those threats, Pietila was living in Lansing, Michigan. Evidence recovered by the Federal Bureau of Investigation (FBI) indicated that Pietila had identified a Jewish synagogue in East Lansing and a specific date in March 2024, and made a wish list of firearms and other weapons.
“Today and every day we will take swift action to detect and disrupt hate crimes,” said U.S. Attorney Mark Totten. “No Michigander should live in fear because of their race, ethnicity, religion, or any other protected status. I’m incredibly grateful to FBI Michigan and our other law enforcement partners for their diligence and dedication.”
In November 2023, Pietila pleaded guilty to sending numerous messages containing threats to kill others to an Instagram user located outside of Michigan. Those messages, which included references to Adolf Hitler and antisemitic language, talked of Pietila’s desire and plans to engage in a mass shooting in a manner similar to a specific past mass shooter. During execution of a federal search warrant in June 2023, the FBI found typed notes in Pietila’s cell phone that indicated plans to engage in a mass shooting and to commit suicide. For his actions, United States District Judge Robert Jonker sentenced Pietila to serve 12 months and one day in prison, 3 years of supervised release following incarceration, and pay $10,648 in restitution.
“I am incredibly proud of the work of our office and appreciative of the collaborative efforts of our law enforcement partners in bringing the defendant to justice,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “There is absolutely no tolerance for threats of violence and intimidation in the state of Michigan and in our society. The FBI will vigorously pursue those who commit these actions.”
The case was investigated by the FBI with assistance from the Chippewa County Sheriff’s Office, TRI-County Drug Enforcement Team (TRIDENT), Upper Peninsula Substance Enforcement Team (UPSET), and Michigan State Police Emergency Services Team. Assistant United States Attorney Chris O’Connor prosecuted the case on behalf of the United States.
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Anchorage woman sentenced to 30 years for producing child pornographyRead the Press Release
ANCHORAGE, Alaska – An Anchorage woman was sentenced today to 30 years in prison for her role in a conspiracy to produce child sexual abuse materials.
According to court documents, Denali Brehmer, 22, and her co-conspirator Darin Schilmiller, 25, conspired to murder Cynthia Hoffman in June 2019 while Schilmiller was residing in Indiana. While they were conspiring to commit Hoffman’s murder, they also conspired to coerce a minor victim to produce sexually explicit images, which Brehmer took and sent to Schilmiller via text message.
Brehmer and Schilmiller pleaded guilty to production of child pornography in front of the U.S. District Court in July 2023. Schilmiller is awaiting sentencing. Both defendants were sentenced by the State of Alaska to 99 years in prison for their roles in Hoffman’s murder.
In delivering the sentence, the court ordered Brehmer to serve a maximum sentence of 30 years in prison and the rest of her life on supervised release.
“The harm Ms. Brehmer has caused to the victims and their families through the course of her conduct is unfathomable,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “My office will continue our unwavering commitment to work with our law enforcement partners to protect Alaska’s children and seek justice against perpetrators who choose to commit these reprehensible crimes.”
“This sentencing underscores the unrelenting efforts by law enforcement and prosecutors, at every level, to ensure that none of Brehmer’s ruthless crimes went unanswered or unpunished,” said Acting Special Agent in Charge Kevin Vorndran of the FBI Anchorage Field Office. “The FBI and our law enforcement partners will continue to use every tool available to identify, investigate, and hold accountable those who exploit and harm our most vulnerable.”
“Denali Brehmer’s actions are beyond heinous,” said Anchorage Police Chief Michael Kerle. “Overcoming the trauma the victim suffered due to Brehmer’s actions will be a life-long journey. This case is an excellent example of why various law enforcement entities working together through the FBI’s Child Exploitation and Human Trafficking Task Force is so vitally important. Hopefully today’s sentencing will aid the victim in their healing process.”
The FBI Anchorage Field Office and Anchorage Police Department investigated the case as part of the FBI’s Child Exploitation and Human Trafficking Task Force.
Assistant U.S. Attorney Adam Alexander 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 U.S. Attorneys’ 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 https://www.justice.gov/psc.
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Albany Felon Sentenced to Prison for Unlawfully Possessing a FirearmRead the Press Release
ALBANY, NEW YORK – Charles E. Williams, age 35, of Albany, was sentenced today to 55 months in prison for possessing a firearm as a previously convicted felon.
United States Attorney Carla B. Freedman and United States Marshal David L. McNulty made the announcement.
The U.S. Marshals Fugitive Task Force tracked Williams to a hotel in Albany County to arrest him for a kidnapping. When searching his hotel room on November 18, 2021, Deputy Marshals found a .357 caliber Smith & Wesson revolver. Williams was prohibited under federal law from possessing the firearm as a result of a prior New York State felony conviction for assault in the first degree.
Since committing this federal offense, Williams has also been convicted of additional felonies for kidnapping, robbery, assault and witness intimidation charges in state courts in Albany and Rensselaer Counties; and he faces additional armed robbery charges in Albany County.
Chief United States District Judge Brenda K. Sannes also imposed a 3-year-term of supervised release.
The U.S. Marshals Service investigated the case with assistance from the North Greenbush Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Jonathan S. Reiner prosecuted the case.
Alameda Resident Sentenced to Two-And-A-Half Years in Prison and Ordered to Pay Nearly $1.5 Million in Restitution to Victims of His Ponzi SchemeRead the Press Release
SAN FRANCISCO – Long Nguyen, who pleaded guilty last year to charges relating to a scheme to defraud at least 20 individuals out of millions of dollars, has been sentenced to 30 months in prison and ordered to pay nearly $1.5 million in restitution and to forfeit $1 million, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. The sentence was imposed by the Hon. Trina L. Thompson, United States District Judge.
Nguyen, 35, a resident of Alameda, California, pleaded guilty in October 2023 to four counts of wire fraud, in violation of 18 U.S.C. § 1343. In his plea agreement, Nguyen admitted that, between September 2015 and July 2021, he operated a scheme to defraud his victims by making false statements about himself, his investment opportunities, how he would invest his victims’ money, and what he in fact did with their money.
Specifically, Nguyen admitted making the following false statements, among others, to induce victims to give him money: that (i) he was a billionaire; (ii) other people who invested with him had received large payouts at a high rate of return; (iii) he was starting his own hedge fund; (iv) he had access to pre-IPO investment opportunities that he would and did invest victims’ money into; and (v) he managed a real estate investment trust that he would and did invest victims’ money into and that would provide victims with monthly income. Nguyen also admitted creating fake screenshots that purported to show victims’ growing investment account balances, and falsely telling victims not only that they were making money, but also that he would buy—and, in some cases, had bought—them Teslas and homes.
According to the plea agreement, Nguyen also admitted that he did not, in fact, invest the majority of the money he received from his victims. Rather, Nguyen admitted spending victims’ money for his own personal use and operating a Ponzi scheme by using money he had received from some victims to pay other victims back. And Nguyen admitted he devised and executed his fraudulent scheme with the intent to defraud his victims.
According to the government’s sentencing memorandum, Nguyen perpetuated his fraud by lying to his victims when they asked for their money back, including by falsely telling them that he was being audited, that his accounts had been frozen, and that others, including his lawyer and the bank, were the source of the delay. He also sent fraudulent checks that his victims were unable to cash.
Nguyen was indicted by a federal grand jury in October 2022 on four counts of wire fraud, all of which he pleaded guilty to. In addition to sentencing Nguyen to prison, Judge Thompson ordered the defendant to pay $1,494,496.89 in restitution to his victims and to forfeit $1 million. Judge Thompson also ordered Nguyen to serve three years of supervised release to begin after his prison term is completed.
Assistant United States Attorney Kelsey Davidson is prosecuting the case with the assistance of Lance Libatique and Marina Ponomarchuk. The prosecution is the result of an investigation by the FBI.
Air National Guardsman Pleads Guilty to Unlawfully Disclosing Classified National Defense InformationRead the Press Release
BOSTON – Jack Douglas Teixeira, a member of the United States Air National Guard (USANG) stationed in Massachusetts, pleaded guilty today to retaining and transmitting classified National Defense Information on a social media platform beginning in or around 2022 and continuing until his arrest in April 2023.
Teixeira, 22, of North Dighton, Mass., pleaded guilty to six counts of willful retention and transmission of classified information relating to the national defense before U.S. District Court Judge Indira Talwani who deferred acceptance of the plea until sentencing on Sept. 27, 2024. If the court accepts the plea, Teixeira faces 132 to 200 months in prison.
Teixeira was arrested in April 2023 and charged by criminal complaint with retention and transmission of National Defense Information (NDI) and unauthorized removal and retention of classified documents or materials. He was subsequently indicted by a federal grand jury in Boston in June 2023. He has remained in federal custody since his arrest.
“Mr. Teixeira exploited his Top-Secret security clearance to share our nation’s secrets on a social media platform. He violated his oath to preserve, protect and defend and, in doing so, he undermined our national security and risked the safety of Americans serving overseas and our allies,” said Acting United States Attorney Joshua S. Levy. “Every instance of mishandling classified information weakens our defense and compromises our ability to thwart potential threats. We cannot afford to underestimate the gravity of this conduct; it has far-reaching consequences that transcend individual interests.”
“Today, Air National Guardsman Jack Teixeira admitted to endangering our national security by unlawfully disclosing classified national defense information. In doing so, he betrayed his oath to defend his country. His actions are a stark contrast to the pledge he made in 2019 to uphold the Air Force’s core values: integrity first, service over self, and excellence in all we do. Instead, he chose integrity last, himself over service, and failed to uphold the finest standards of this military branch,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI takes all breaches of classified information seriously and we will use all the resources at our disposal to identify and apprehend those who jeopardize the safety of this country and its citizens.”
“By knowingly and improperly posting classified national defense information on a social media platform, Mr. Teixeira callously disregarded the national security of the United States and betrayed the trust of the American people he swore to protect,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “With today’s plea, the Department of Justice holds Mr. Teixeira accountable for his actions and makes clear the gravity of the responsibility to protect classified information and our national security.”
“Retaining and transmitting classified information is a crime – and U.S. government employees are trusted to secure and protect that information,” said David Sundberg, Assistant Director in Charge of the Federal Bureau of Investigation, Washington Field Office. “To get to where we are today took the work of dozens of FBI employees, including special agents, intelligence analysts, and computer forensic examiners, who combed through and analyzed hundreds of documents and evidentiary items. The FBI and our partners across the globe are committed to identify and bring to justice those who make the choice to put our country at risk by publicly and recklessly disclosing classified information.”
Teixeira enlisted in the USANG in September 2019 and held a Top-Secret security clearance since 2021. Beginning in or around January 2022, Teixeira unlawfully retained and transmitted NDI classified as “TOP SECRET” or “SECRET” and/or Sensitive Compartmented Information (SCI), onto the social media platform Discord to persons not authorized to receive such information.
According to the charging documents, Teixeira used secured workstation at the Otis USANG Base to conduct hundreds of searches for classified documents containing NDI that were unrelated to his duties as an Information Technology specialist. On two separate occasions, Teixeira was warned by his superiors to no longer take notes on classified intelligence information and to stop conducting “deep dives” into classified intelligence information. However, Teixeira purposefully removed classified information and documents containing NDI without authorization and subsequently transmitted the information in written paragraphs to other users on Discord. Teixeira also posted images of classified documents to Discord, which bore standard classification markings – including “SECRET,” “TOP SECRET” and SCI designations – indicating that they contained highly classified United States government information.
Among the classified information Teixeira unlawfully transmitted was descriptions on the Russia-Ukraine conflict, including troop movements on a particular date based on sensitive U.S. intelligence, gathered through classified sources and methods and contains national defense information.
The charges of unauthorized retention and transmission of national defense information each provide for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy; FBI SAC Cohen; AAG Olsen; and AD Sundberg made the announcement today. Valuable assistance was provided by the Naval Criminal Investigative Service; Air Force Office of Special Investigations; and the U.S. Attorney’s Office for the Eastern District of Virginia. Assistant U.S. Attorneys Nadine Pellegrini, Jared C. Dolan and Jason A. Casey of the U.S. Attorney’s National Security Unit and Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Air National Guardsman Agrees to Plead Guilty to Unlawfully Disclosing Classified National Defense InformationRead the Press Release
Jack Douglas Teixeira, 22, of North Dighton, Massachusetts, a member of the U.S. Air National Guard (USANG) stationed in Massachusetts, has agreed to plead guilty to retaining and transmitting classified National Defense Information on a social media platform beginning in or around 2022 and continuing until his arrest in April 2023.
Teixeira has agreed to plead guilty to six counts of willful retention and transmission of classified information relating to the national defense (National Defense Information).
“By knowingly and improperly posting classified national defense information on a social media platform, Mr. Teixeira callously disregarded the national security of the United States and betrayed the trust of the American people he swore to protect,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “With today’s plea, the Department of Justice holds Mr. Teixeira accountable for his actions and makes clear the gravity of the responsibility to protect classified information and our national security.”
“Mr. Teixeira exploited his Top-Secret security clearance to share our nation’s secrets on a social media platform. He violated his oath to preserve, protect and defend and, in doing so, he undermined our national security and risked the safety of Americans serving overseas and our allies,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “Every instance of mishandling classified information weakens our defense and compromises our ability to thwart potential threats. We cannot afford to underestimate the gravity of this conduct; it has far-reaching consequences that transcend individual interests.”
“Today, Jack Teixeira admitted he retained and disclosed classified national security information, actions that benefit our nation’s adversaries and harm U.S. security,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Individuals granted security clearances are entrusted with protecting our nation’s most sensitive secrets, and Teixeira knowingly betrayed that trust and put the country at risk. The FBI will continue to work with our partners to hold accountable anyone who would endanger our national security interests.”
Teixeira was arrested in April 2023 and charged by criminal complaint with retention and transmission of national defense information and unauthorized removal and retention of classified documents or materials. He was subsequently indicted by a federal grand jury in Boston in June 2023. He has remained detained in federal custody since his arrest.
According to the charging documents, Teixeira enlisted in the USANG in September 2019 and has held a Top-Secret security clearance since 2021. It is alleged that, beginning in or around January 2022, Teixeira unlawfully retained and transmitted National Defense Information classified as “TOP SECRET” or “SECRET” and/or Sensitive Compartmented Information (SCI), onto a social media platform to persons not authorized to receive such information.
Teixeira allegedly accessed classified documents containing National Defense Information from a classified workstation at the Otis USANG Base and transcribed and transmitted the information in written paragraphs to other users on the social media platform. Teixeira also allegedly posted images of classified documents to the social media platform, which bore standard classification markings – including “SECRET,” “TOP SECRET” and SCI designations – indicating that they contained highly classified U.S. government information.
The charges of unauthorized retention and transmission of national defense information each carry a maximum penalty of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case, with valuable assistance provided by Naval Criminal Investigative Service and the Air Force Office of Special Investigations.
Assistant U.S. Attorneys Nadine Pellegrini, Jared C. Dolan and Jason A. Casey for the District of Massachusetts and Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Air Force Police Officer Convicted of over $150,000 in Unemployment Insurance Fraud During the Covid-19 PandemicRead the Press Release
FRESNO, Calif. — Trevon Miller, 31, a former Air Force Police Officer at Edwards Air Force Base, pleaded guilty to mail fraud charges today for submitting fraudulent unemployment insurance claims during the COVID-19 pandemic, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April 2020 and June 2020, Miller submitted fraudulent claims in several states using his former name of Trevon Rodney. Miller told the state agencies that administer the unemployment insurance system that he was unemployed when he was an active-duty Air Force Police Officer the whole time. The claims were worth more than $150,000 and the money was put onto debit cards that were mailed to Miller.
This case is the product of an investigation by the Air Force Office of Special Investigations, the U.S. Secret Service, the Defense Criminal Investigative Service, and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Joseph Barton and Arelis Clemente are prosecuting the case.
Miller is scheduled to be sentenced on June 17, 2024, by U.S. District Judge Jennifer L. Thurston. Miller faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of the California COVID-19 Fraud Enforcement Strike Force, which is one of the interagency COVID-19 fraud strike forces established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California, and focuses on large-scale, multistate, and egregious 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 money.
Air Force Employee Indicted for Unlawful Disclosure of Classified National Defense InformationRead the Press Release
United States Attorney Susan Lehr announced that David Franklin Slater, 63, of Nebraska, was arrested Saturday, March 2, after having been indicted in the District of Nebraska, for allegedly conspiring to transmit and transmitting classified information relating to the national defense (National Defense Information or NDI) on a foreign online dating platform beginning in or around February 2022 until in or around April 2022. Slater was a civilian employee of the U.S. Air Force assigned to the U.S. Strategic Command (USSTRATCOM), at Offutt Air Force Base in Bellevue, Nebraska.
According to the indictment, Slater worked in a classified space at USSTRATCOM and held a Top Secret security clearance from in or around August 2021 until in or around April 2022, after retiring as a Lieutenant Colonel from the U.S. Army. It is alleged that Slater willfully, improperly, and unlawfully transmitted NDI classified as “SECRET,” which he had reason to believe could be used to the injury of the United States or to the advantage of a foreign nation, on a foreign online dating platform to a person not authorized to receive such information.
“As alleged, Mr. Slater, an Air Force civilian employee and retired U.S. Army Lieutenant Colonel, knowingly transmitted classified national defense information to another person in blatant disregard for the security of his country and his oath to safeguard its secrets,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice will seek to hold accountable those who knowingly and willfully put their country at risk by disclosing classified information.”
“Certain responsibilities are incumbent to individuals with access to Top Secret information. The allegations against Mr. Slater challenge whether he betrayed those responsibilities,” said U.S. Attorney Susan Lehr for the District of Nebraska. “We look forward to continuing our work with the FBI and the Air Force Office of Special Investigations to ensure the safety of our country.”
“The FBI investigates those who choose to illegally use their access to classified information to put our national security at risk,” said Special Agent in Charge Eugene Kowel of the FBI Omaha Field Office. “When people violate the trust given to them to safeguard our nation's intelligence, they put our country at risk. We will continue working shoulder to shoulder with our partners to protect the American people and uphold the constitution by safeguarding our country's classified information.”
According to the indictment, Slater attended USSTRATCOM briefings regarding Russia’s war against Ukraine that were classified up to TOP SECRET//SENSITIVE COMPARTMENTED INFORMATION (TS//SCI). Slater then transmitted classified NDI that he learned from those briefings via the foreign online dating website’s messaging platform to his co-conspirator, who claimed to be a female living in Ukraine on the foreign dating website. The co-conspirator regularly asked Slater to provide her with sensitive, non-public, closely held and classified NDI and called Slater in their messages her “secret informant love” and her “secret agent.” In response to these requests, Slater indeed provided classified NDI to her, including regarding military targets and Russian military capabilities relating to Russia’s invasion of Ukraine.
Slater will make his initial court appearance tomorrow, March 5, in the District of Nebraska. If convicted, Slater faces a maximum penalty of 10 years in prison, three years of supervised release, and a fine of up to $250,000 for each count of conspiracy to transmit and the transmission of national defense information. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Omaha Field Office and Air Force Office of Special Investigations are investigating the case.
Assistant U.S. Attorney Donald Kleine for the District of Nebraska and Trial Attorney Emma Dinan Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Air Force Employee Indicted for Unlawful Disclosure of Classified National Defense InformationRead the Press Release
A civilian employee of the U.S. Air Force assigned to the U.S. Strategic Command (USSTRATCOM), at Offutt Air Force Base, was arrested Saturday, March 2, for allegedly conspiring to transmit and transmitting classified information relating to the national defense (National Defense Information or NDI) on a foreign online dating platform beginning in or around February 2022 until in or around April 2022.
According to the indictment, David Franklin Slater, 63, of Nebraska, worked in a classified space at USSTRATCOM and held a Top Secret security clearance from in or around August 2021 until in or around April 2022, after retiring as a Lieutenant Colonel from the U.S. Army. It is alleged that Slater willfully, improperly, and unlawfully transmitted NDI classified as “SECRET,” which he had reason to believe could be used to the injury of the United States or to the advantage of a foreign nation, on a foreign online dating platform to a person not authorized to receive such information.
“As alleged, Mr. Slater, an Air Force civilian employee and retired U.S. Army Lieutenant Colonel, knowingly transmitted classified national defense information to another person in blatant disregard for the security of his country and his oath to safeguard its secrets,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice will seek to hold accountable those who knowingly and willfully put their country at risk by disclosing classified information.”
“Certain responsibilities are incumbent to individuals with access to Top Secret information. The allegations against Mr. Slater challenge whether he betrayed those responsibilities,” said U.S. Attorney Susan Lehr for the District of Nebraska. “We look forward to continuing our work with the FBI and the Air Force Office of Special Investigations to ensure the safety of our country.”
“The FBI investigates those who choose to illegally use their access to classified information to put our national security at risk,” said Special Agent in Charge Eugene Kowel of the FBI Omaha Field Office. “When people violate the trust given to them to safeguard our nation's intelligence, they put our country at risk. We will continue working shoulder to shoulder with our partners to protect the American people and uphold the constitution by safeguarding our country's classified information.”
According to the charging documents, Slater attended USSTRATCOM briefings regarding Russia’s war against Ukraine that were classified up to TOP SECRET//SENSITIVE COMPARTMENTED INFORMATION (TS//SCI). Slater then transmitted classified NDI that he learned from those briefings via the foreign online dating website’s messaging platform to his co-conspirator, who claimed to be a female living in Ukraine on the foreign dating website. The co-conspirator regularly asked Slater to provide her with sensitive, non-public, closely held and classified NDI and called Slater in their messages her “secret informant love” and her “secret agent.” In response to these requests, Slater indeed provided classified NDI to her, including regarding military targets and Russian military capabilities relating to Russia’s invasion of Ukraine.
Slater will make his initial court appearance tomorrow, March 5, in the District of Nebraska. If convicted, Slater faces a maximum penalty of 10 years in prison, three years of supervised release, and a fine of up to $250,000 for each count of conspiracy to transmit and the transmission of national defense information. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Omaha Field Office and Air Force Office of Special Investigations are investigating the case.
Assistant U.S. Attorney Donald Kleine for the District of Nebraska and Trial Attorney Emma Dinan Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Slater Indictment
2 March 2024
Two Individuals Sentenced to Prison on Two Child Exploitation CasesRead the Press Release
SAN JUAN, Puerto Rico – Eduardo Luis Marrero Casanova, 53, a religious leader in Cayey, was sentenced on February 27, 2024, by Chief Judge Raul M. Arias Marxuach, to 240 months of imprisonment for two counts of production of child pornography.
According to court documents, from December 2022, through January 25, 2023, Marrero Casanova used a cellular phone, as well as internet instant messaging services, to knowingly persuade, induce, entice, and coerce two fifteen-year-old male minors to engage in sexual activity for which any person can be charged with a criminal offense, which includes the production of child pornography as defined in Title 18, United States Code. Also, Marrero Casanova did knowingly employ, use, persuade, induce, entice, and coerce a minor, and attempted to engage in sexually explicit conduct for the purpose of producing any visual depiction of such conduct.
In a separate case, Alexander Joel Rivera-Santos, from Salinas, PR, was sentenced by Senior Judge Francisco A. Besosa on February 9, 2024, to 51 months in prison followed by 5 years of supervised release for possession of child exploitation material, in violation of 18 U.S.C. § 2252A(a)(5)(B).
According to court documents, an investigation from HSI Phoenix into chat rooms utilizing the Viber chat application to exchange child pornography identified users who were members of a chat that was exchanging child pornography. Several users’ numbers were affiliated with phone numbers from Puerto Rico. Those numbers were referred to HSI San Juan for further investigation. An open-source database search revealed that one of the cellular phone numbers identified as a known member of those chat rooms was being used by Rivera-Santos. The results of the investigation revealed that from on or about May 6, 2021, through on or about June 24, 2022, Rivera-Santos, using a cellphone device which had internet capabilities, knowingly possessed, and accessed with intent to view, material containing images of child pornography, that is, sexually explicit images of minors and minors engaging in sexual acts, including images of prepubescent minors or minors who had not attained 12 years of age.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico; and Rebecca González Ramos, Special Agent in Charge of Homeland Security Investigations made the announcement.
Homeland Security Investigations investigated the case.
Assistant U.S. Attorneys Daynelle Álvarez Lora and Emelina Agrait Barreto prosecuted the cases.
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Porcupine Man Found Guilty of Aggravated Sexual Abuse of a Minor and Assault Resulting in Serious Bodily InjuryRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a jury has convicted Wilbur Morrison, Jr., age 36, of Porcupine, South Dakota, of two counts of Aggravated Sexual Abuse of a Minor and one count of Assault Resulting in Serious Bodily Injury following a two-day jury trial in federal district court in Rapid City, South Dakota. The verdict was returned on February 28, 2024.
The charges carry a mandatory minimum of 30 years up to life in custody and/or a $250,000 fine, up to life on supervised release, and a $300 special assessment to the Federal Crime Victims Fund.
Morrison was indicted by a federal grand jury in May of 2023.
Morrison sexually abused a juvenile female on the evening of January 12, 2023, near Porcupine. This abuse was witnessed by two juvenile males. As a result of sexual abuse committed by Morrison, syphilis, a sexually transmitted disease, was transmitted to the juvenile female victim.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the FBI. Assistant U.S. Attorney Megan Poppen prosecuted the case.
A presentence investigation was ordered and a sentencing date has been set for May 17, 2024. The defendant was remanded to the custody of the U.S. Marshals Service.
Former School Bus Driver Accused of Igniting a Bus Full of Children is Indicted and DetainedRead the Press Release
SALT LAKE CITY, Utah – Michael Austin Ford, 58, of West Valley City, Utah, a former Granite School District Bus Driver, was ordered detained March 1, 2024, by a United States Magistrate Judge after he was accused of setting the school bus on fire on two occasions. Ford was indicted by a federal grand jury on Feb. 21, 2024, for two alleged incidents of arson while driving the bus.
According to court documents, in February 2022, Ford allegedly set a Granite School District school bus on fire that had 42 children inside and did so while driving in traffic. As alleged in court documents, Ford used an ignition device to start a fire on the bus and was captured on video continuing to drive the bus, despite smoke billowing past his face towards the back of the bus where children were seated.
In April 2023, Ford was again driving a Granite School District bus in traffic when he was captured on video igniting a fire on the bus. Again, Ford continued to drive the bus with smoke billowing past his face. Days later, in April 2023, Ford was arrested by Granite School Police and questioned about the fire but was released.
Ford is charged with two counts of arson of a vehicle of an organization receiving federal funds. A jury trial is scheduled for April 29, 2024, at 8:30 a.m. in courtroom 8.3 before a U.S. District Court Judge at the United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is investigating the case.
Assistant United States Attorney Michael J. Thorpe of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
1 March 2024
Wagoner Resident Sentenced for Child NeglectRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Heather Robertson, age 48, of Wagoner, Oklahoma, was sentenced to time served of three days, plus six months of home detention with electronic monitoring, to be followed by three years of supervised release, for one count of child neglect.
The charges arose from investigations the Okmulgee County Sherriff’s Office and the Federal Bureau of Investigation.
On November 22, 2022, Robertson pleaded guilty to one count of Child Neglect in Indian Country. According to investigators, on or about September 8, 2021, Robertson willfully and maliciously failed to protect a child under the age of 18 from exposure to the use and possession of methamphetamine while responsible for the child’s health, safety, and welfare. The crime occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in 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 hearing in Muskogee.
Assistant United States Attorney Edith Singer represented the United States.
Veteran and wife indicted for defrauding VARead the Press Release
TOPEKA, KAN. –A federal grand jury in Topeka returned an indictment charging a Kansas couple with fraudulently obtaining disability benefits from the Department of Veterans Affairs (VA).
According to court documents, James Bradford, 47, and Equanda Bradford, 45, of Junction City are charged with one count of conspiracy and one count of theft of public money, property, or records.
James Bradford, a U.S. Army veteran, and his wife Equanda are accused of providing false and fraudulent information to the VA, about his caregiver needs and her caregiving functions resulting in the receipt of $172,426 in disability compensation to which they were not entitled.
The Department of Veterans Affairs - Office of Inspector General and the General Services Administration - Office of Inspector General are investigating the case.
Assistant U.S. Attorney Skipper Jacobs 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.
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Versailles Man Sentenced to 180 Months for Illegal Possession of Firearms and Explosive DevicesRead the Press Release
LEXINGTON, Ky. – A Versailles, Ky., man, Bryan Carroll, 46, was sentenced to 180 months in federal prison on Friday, by Chief U.S. District Judge Danny C. Reeves, for possession of a firearm by a convicted felon and for carrying an explosive during the commission of a federal felony offense.
According to his plea agreement, on March 25, 2021, law enforcement was notified that Carroll was enroute to the University of Kentucky Hospital, and that had an active arrest warrant. Law enforcement then met Carroll outside the Emergency Department, where he was taken into custody. During a subsequent search of Carroll and his vehicle, law enforcement located a total of eight firearms (including a sawed-off shotgun), four explosive devices, and one improvised explosive bomb.
During his interview, Carroll admitted to having the firearms on him, when he was arrested, and acknowledged the additional firearms found in his vehicle. Carroll further acknowledged the “fireworks” in his vehicle, and admitted to constructing the metal can explosive devices, which contained nails. Carroll then told law enforcement that he had additional destructive devices at his home, and that he possessed a large quantity of explosive materials. Law enforcement obtained a search warrant for Carroll’s home where they located two additional firearms along with six additional improvised explosive bombs.
Carroll admitted that he possessed the firearms and explosives and that he was prohibited from doing so, based on his prior felony conviction, for complicity to traffic a controlled substance in the first degree, in the Woodford Circuit Court, from December 2015.
Under federal law, Carroll must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; Chief Michael Murray, Versailles Police Department; Chief Lawrence Weathers, Lexington Police Department; and Chief Joe Monroe, University of Kentucky Police Department, jointly announced the sentencing.
The investigation was conducted by ATF, FBI, Versailles Police Department, the Lexington Police Department, and the University of Kentucky Police Department. Assistant U.S. Attorney Francisco Villalobos prosecuted the case on behalf of the United States.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Two convicted in multimillion-dollar adult daycare fraud schemeRead the Press Release
McALLEN, Texas – A federal jury has returned guilty verdicts against a doctor and a clinic employee for receiving illegal kickbacks after ordering unnecessary lab tests and prescriptions, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for approximately three hours before finding Dr. Osama Nahas, 69, McAllen, and Isabel Pruneda, 53, Edinburg, guilty of conspiracy to commit healthcare fraud, healthcare fraud and conspiracy to violate the Anti-Kickback Statute following a two-week trial. Pruneda was also convicted for aggravated identity theft.
“Adult day cares are supposed to be places where the elderly and vulnerable feel safe, not vehicles for scheming doctors and staff to make illegal profits through kickbacks and get-rich quick opportunities” said Hamdani. “Nahas and Pruneda preyed on the elderly by bribing their way into adult care facilities, abusing the trust and respect that doctors and medical professionals ordinarily deserve. Today’s conviction sends a message that patients should never be seen merely as dollar signs and that kickbacks play no role in the services that doctors order.”
Nahas is the owner and physician at Crosspoint Medical Clinic in Edinburg. He would travel to adult day care centers around the Rio Grande Valley ordering unnecessary lab tests and prescriptions on behalf of elderly and vulnerable clients who were spending time there. Pruneda, a medical assistant at Crosspoint, assisted Nahas in the scheme, helping to forge patient signatures on consent forms and misappropriate expensive patient medications such as pain creams. Among other things, Pruneda would strip patient information off and remove creams from their boxes so that she could hand them out as “goodie bags” to incentivize patients to be tested.
From January 2016 to December 2017, Nahas and Pruneda ordered unnecessary lab tests and prescriptions which resulting in millions in losses. They directed those prescriptions and tests to companies who then paid them in kickbacks.
In June 2018, law enforcement executed a search warrant at Crosspoint and found hundreds of thousands in stolen medications.
Nahas and Pruneda also bribed their way into the adult daycare facilities by offering kickbacks to the adult daycare owners disguised as “rent” payments.
The jury heard witness testimony revealing both Nahas and Pruneda accepted bribes in exchange for referrals, many of which were also disguised as “rent” payments.
Evidence revealed that both received tens of thousands of dollars in kickbacks from January 2016 to December 2017.
Nahas attempted to convince the jury the payments he received were legitimate “rent” payments for the use of space, and Pruneda ordered all the prescriptions and lab tests without his consent. Conversely, Pruneda’s defense argued she was doing what Nahas taught her and following orders, and she denied committing any forgeries. The jury did not believe those claims and found both guilty as charged.
U.S. District Chief Judge Randy Crane presided over the trial and set sentencing for May 16. At that time, both face up to 10 years in federal prison for the healthcare fraud conspiracy and each substantive healthcare fraud conviction, while the kickback conspiracy carries another possible five years in prison. For aggravated identity theft, Pruneda must also serve a mandatory two years which must be served consecutively to any other prison term imposed. They could also be ordered to pay up to $250,000 in fines.
Pruneda was taken into custody while Nahas was permitted to remain on bond pending their detention hearings set for March 4 and 8, respectively.
The FBI, Department of Health and Human Services – Office of Inspector General (OIG), Texas Attorney General’s Medicaid Fraud Control Unit and Texas Health and Human Services - OIG conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Brad Gray are prosecuting the case.
Two Worcester County Men Sentenced for Trafficking Contraband Smokeless Tobacco to Evade over $2 Million in TaxesRead the Press Release
BOSTON – Two Worcester County men were sentenced yesterday for conspiring to traffic in contraband smokeless tobacco.
Mohammad Hanif Balaparya, 63, of Shrewsbury, and Rakesh Garg, 53, of Holden, were sentenced by U.S. District Court Judge Margaret R. Guzman to three and two years’ probation, respectively. In October 2023, the defendants pleaded guilty to one count each of conspiracy to transport, possess, purchase and distribute in excess of 500 units of contraband smokeless tobacco. Balaparya additionally pleaded guilty to one count of transporting and possessing over 500 units of smokeless tobacco.
Throughout 2017, Balaparya rented commercial box trucks on an almost a weekly basis to drive to Bensalem, Pa. While in Pennsylvania, Balaparya purchased significant quantities of smokeless tobacco, using his own funds and funds contributed by Garg, that he transported back to his residence in Shrewsbury, Mass. Balaparya and Garg then sold the smokeless tobacco to certain convenience store owners in Massachusetts. By doing so, the defendants evaded over $2.3 million in excise taxes that wholesale distributors of smokeless tobacco in Massachusetts are required to pay. The defendants evaded an additional $1 million in Massachusetts excise taxes on cigars and other smoking products.
During a search of the defendants’ properties in December 2017, the contraband tobacco and approximately $140,000 in unlawful proceeds were seized. The Court ordered those funds forfeited and scheduled a further hearing to determine additional forfeiture and restitution.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Geoffrey E. Snyder, Commissioner of the Massachusetts Department of Revenue made the announcement today. Valuable assistance in the investigation was provided by the Shrewsbury and Holden Police Departments. Assistant U.S. Attorneys Greg A. Friedholm and Lucy Sun prosecuted the case.
Two Men Arrested and Indicted for Illegally Exporting Juvenile American Eels from Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned an indictment on February 29, 2024, charging two Dominican nationals with smuggling goods from the United States, Lacey Act trafficking, and failure to heave to, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to court documents, on February 21, 2024, Saul Enrique José De La Cruz and Simon De La Cruz Paredes, knowingly exported and attempted to export juvenile American eels from the United States without declaring said merchandise to officials of the United States Fish and Wildlife Service in violation of 18 U.S.C. § 554. The defendants were also charged with one count of Lacey Act trafficking for transporting and intending to sell the fish in violation of United States regulations, and one additional count of failure to heave to when they failed to obey the United States Coast Guard’s order to stop their vessel.
During a morning patrol, a Customs and Border Protection aircraft detected a suspicious vessel, approximately 39 nautical miles north of Arecibo, Puerto Rico. The United States Coast Guard responded to interdict the vessel, which was flagless and outfitted for smuggling. Upon approach, the defendants failed to heave to, obligating the United States Coast Guard to neutralize the vessel. The defendants were caught on board in possession of approximately 22 bags of over 5,000 live American eels per bag that were being transported from Puerto Rico to the Dominican Republic.
The American eel (Anguilla rostrata) is a species of fish native to the Eastern United States and the Caribbean. The American eel is a “catadromous” species, meaning that it reproduces in saltwater systems and matures in fresh water (riverine) systems. American eel eggs hatch in the Atlantic Ocean’s Sargasso Sea, after which ocean currents carry the juvenile eels along the eastern American coast. Tidal fluctuations then wash the eels into freshwater river systems, including the rivers of Puerto Rico, after which they migrate upstream. At this juvenile stage, during which the eels are transparent and measure approximately 2-3 inches in length, the eels are referred to as an “elvers” or a “glass eels.” Once a glass eel matures, it will return to the Sargasso Sea in order to spawn.
American eels have not been successfully bred in captivity. The commercial market is therefore concentrated on the juvenile glass eel stage. Once captured, glass eels are typically sold to aquaculture facilities in Asia, where they are raised into adults and sold for sushi and other foods.
“The U.S. Attorney’s Office is committed to enforcing federal environmental protection laws and to holding violators responsible for the harm they cause. These laws protect the animals, resources, and habitats within Puerto Rico,” said United States Attorney Muldrow.
“This case highlights the extreme measures smuggling organizations are undertaking in violation of U.S. fishing laws to access and sell baby American eels in the international market, an activity that threatens to endanger the American eel population in the Caribbean,” said Cmdr. Gerard Wenk, Sector San Juan chief of response. “We appreciate the close coordination and collaboration of our CBP and Puerto Rico Police partners that was instrumental in achieving a successful interdiction and apprehension of the two suspects.”
“One of our highest priorities is to combat illegal wildlife trafficking and investigate individuals and organizations who are involved in the unlawful commercialization of our nation’s fish and wildlife. The illegal harvesting of American eels poses a vital threat to the survival of this essential species and undermines legal fishery management, jeopardizing the ecosystem,” said USFWS Office of Law Enforcement Assistant Director Ed Grace.
If convicted, the defendants face a maximum penalty of twenty years in prison. If found guilty, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The National Oceanic Atmospheric Administration (NOAA) and U.S. Fish and Wildlife Service Office of Law Enforcement are leading the investigation in this case, with the collaboration of the U.S. Coast Guard, Customs and Border Protection, and the Puerto Rico Police Bureau, Joint Forces of Rapid Action (FURA). The Puerto Rico Department of Natural and Environmental Resources has also provided valuable assistance.
The case is being prosecuted by Senior Trial Attorney Patrick M. Duggan of the Environmental Crimes Section of the U.S. Department of Justice and Assistant U.S. Attorney Seth A. Erbe, Environmental Litigation Coordinator for the U.S. Attorney’s Office for the District of Puerto Rico.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Three Onondaga County Residents Indicted for Conspiring to Distribute Methamphetamine and FentanylRead the Press Release
SYRACUSE, NEW YORK – Devon Drake, age 33, Lacey Fontaine, age 33, and Henry Townsend, age 28, each of Syracuse, have been indicted and charged with distributing and conspiring to distribute and possess with intent to distribute methamphetamine and fentanyl. Drake is also charged with distributing methamphetamine and fentanyl within 1,000 feet of an elementary school.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA) New York Division, made the announcement.
The charges filed against Drake, Fontaine, and Townsend carry a minimum sentence of 10 years in prison and a maximum of life, a fine of up to $10,000,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
DEA is investigating the case with assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Metro-Jefferson Drug Task Force, the Onondaga County District Attorney’s Office, and the Syracuse Police Department. Assistant U.S. Attorney Jessica Carbone and Special Assistant U.S. Attorney Paul Tuck are prosecuting the case.
Tahlequah Resident Sentenced for Being A Felon in Possession of A FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeffery Glenn Bocephus Robinson, age 33, of Tahlequah, Oklahoma, was sentenced to 38 months in prison for possessing a firearm after being convicted previously of a felony offense.
The charges arose from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cherokee County Sheriff’s Office.
On June 13, 2023, Robinson pleaded guilty to one count of Felon in Possession of Firearm. According to investigators, on or about November 28, 2022, Robinson possessed a .22 rifle after having been convicted of a crime punishable by imprisonment for a term exceeding one year, and despite knowing of such conviction.
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. Robinson will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Edith Singer represented the United States.
Tahlequah Resident Sentenced for Armed Assault on Bank AgentRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nick Allen Mabray, age 37, and Gene Mabray, age 68, both of Tahlequah, Oklahoma, were sentenced for their roles in a January 2021 assault on a bank agent.
Nick Allen Mabray was sentenced to 84 months in prison for one count of Use of a Firearm During a Crime of Violence, to be served consecutive to an additional 46 months each for one count of Conspiracy to Commit Assault with a Dangerous Weapon in Indian Country, and one count of Assault with a Dangerous Weapon in Indian Country, to be served concurrently. Nick Allen Mabray was found guilty of these charges by a federal jury on August 15, 2023.
Gene Mabray was sentenced to 27 months for one count of Conspiracy to Commit Assault with a Dangerous Weapon in Indian Country. Gene Mabray entered his guilty plea to the one count on July 5, 2023.
The charges arose from investigations by the Federal Bureau of Investigation and the Cherokee County Sheriff’s Department.
According to investigators, on January 6, 2021, the Mabrays assaulted a RCB Bank agent at a foreclosed property in Park Hill, Oklahoma. At the conclusion of a court-ordered inspection of the property, Nick Mabray rammed the agent’s truck with his own vehicle, disabling it. As the agent dialed 911 for help, the Mabrays forced the agent from the rammed truck at gunpoint, Gene Mabray relieved the agent of the cellphone and a firearm, and Nick Mabray beat the agent with a firearm, threatening to kill him. The crimes occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation of Oklahoma, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings. The defendants were remanded to the custody of the U.S. Marshal Service pending transportation to a designated United States Bureau of Prisons facility to serve their non-paroleable sentences of incarceration.
Special Assistant United States Attorney Robert F. Moody represented the United States.
Swansea Man Sentenced to 5 Years’ Imprisonment for Taking $1.2 Million in SNAP BenefitsRead the Press Release
EAST ST. LOUIS, Ill. – A district judge ordered a Swansea man to repay the Government over $1.2 million after he admitted to using an East St. Louis market in a fraud scheme to obtain SNAP benefits.
Almahde H. Nijmeh, 65, pleaded guilty to one count of unlawful acquisition of SNAP benefits in August 2023. In addition to repaying the Government, Nijmeh was sentenced to 5 years’ imprisonment and 2 years’ supervised release.
“Millions of Americans rely on SNAP benefits to provide nutritious food for their families, but individuals who misuse the program to commit fraud and enrich themselves are breaking federal law,” said U.S. Attorney Rachelle Aud Crowe.
The federal government funds the Supplemental Nutrition Assistance Program (SNAP) to provide food benefits to low-income families.
According to court documents, Nijmeh had been disqualified from the program in the past, but re-gained admittance into the program by re-applying using the names of various family members. In his latest venture, Nijmeh used East Side Meat Market in East St. Louis to accept SNAP cards loaded with benefits in exchange for cash and other ineligible items from at least August 2017 through November 2021.
“Homeland Security Investigations is dedicated to investigating individuals who commit financial fraud and attempt to profit from government programs like SNAP,” said Acting Special Agent in Charge of HSI Kansas City. “This sentencing confirms HSI’s commitment to bringing these individuals to justice.”
According to the market’s licensing by the state, Nijmeh had put the property and the SNAP license in the names of other family members. Court documents, however, state Nijmeh was the de facto owner and operator of the business.
“This sentence serves as just punishment and notice to others who seek to defraud the Supplemental Nutrition Assistance Program that the U.S. Department of Agriculture-Office of Inspector General is committed to protecting the integrity of USDA’s programs. The USDA-OIG thanks the U.S. Attorney’s Office, who prosecuted the case, Homeland Security Investigations and the Illinois Department of Revenue, Criminal Investigation Division for their assistance with the investigation and helping bring Nijmeh to justice.”
Nijmeh and employees under his direction routinely purchased SNAP cards from customers in exchange for cash equal to 50% or less of the benefits. They also accepted SNAP benefits for ineligible items like alcohol and tobacco products, at times up-charging customers for the illegal transactions. In total, the scheme unlawfully acquired $1,239,546.79.
USDA-OIG, Homeland Security Investigations, and the Illinois Department of Revenue contributed to this criminal case. Assistant U.S. Attorney Peter T. Reed prosecuted the case.
Suburban Chicago Man Among Three People Charged with Swindling Investors out of More Than $3.9 MillionRead the Press Release
CHICAGO — A suburban Chicago man was among three people indicted on federal fraud charges for allegedly swindling investors, including a children’s charity, out of more than $3.9 million.
EDWARD L. WOOTEN, LEE S. ROSE, and JOHN L. KRCIL claimed to work for a Wyoming investment company called Black Lion Investment Partners Inc. Beginning in 2019, the trio falsely suggested to investors that they could earn substantial returns by participating in so-called “private placement” trading programs involving “investment grade fixed income securities” of “top-rated” banks or financial institutions, according to an indictment unsealed Thursday in U.S. District Court in Chicago. The defendants fraudulently claimed that their trading programs yielded multi-million-dollar investment returns within short periods of time, and that investor funds would be returned if the programs failed to perform within 60 days, the indictment states. The charges allege that the defendants failed to use all investor funds to conduct trades, did not pay any trading profits to investors, and did not return all investor funds as promised.
The defendants instead converted investor funds to their own use and benefit, the indictment states. As a result of the fraud scheme, six investors, including an Oklahoma children’s charity, suffered losses totaling approximately $3,905,000.
Wooten, 51, of Macon, Ga., Rose, 82, of Deerfield, Ill., and Krcil, 55, of Hanover, Minn., are charged with wire fraud and interstate transfer of money taken by fraud. Wooten and Rose are also charged with money laundering and making false statements. Wooten also faces a charge of making false statements to the FBI, while Rose is charged with making false statements to a federal judge, the FBI, and the U.S. Securities and Exchange Commission.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The SEC provided valuable assistance. The government is represented by Assistant U.S. Attorney Brian Havey.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Wooten et al indictmentSt. Charles Man Admits Recording Sexual Abuse of 2 GirlsRead the Press Release
ST. LOUIS – A man from St. Charles, Missouri on Friday admitted recording his sexual abuse of two young girls for years.
Ronald C. Lawrence, 25, pleaded guilty in U.S. District Court in St. Louis to two counts of production of child pornography, two counts of distribution of child pornography and one count of receiving child pornography.
Lawrence admitted sexually abusing two girls for years, starting when one was just 7 years old. He recorded that abuse and shared those images with others online. He also admitted downloading and possessing child sexual abuse material. A third girl told authorities that he touched her inappropriately in 2022. She said her abuse stopped when she punched Lawrence in the face.
The investigation began after multiple electronic service providers made cyber tip reports to the National Center for Missing and Exploited Children (NCMEC) stemming from the child pornography activity conducted by Lawrence, including Dropbox, Instagram and Google.
Lawrence is scheduled to be sentenced June 21. Assistant U.S. Attorney Jillian Anderson will ask for a sentence of 35 years in prison, the plea agreement says.
The FBI, the St. Charles County Police Department and the St. Charles County Cyber Crime Task Force investigated the case. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
Santa Barbara County Man Found Guilty of Distributing Fentanyl that Resulted in Fatal Overdose to Fellow Jail InmateRead the Press Release
LOS ANGELES – A Lompoc man was found guilty by a jury today of aiding and abetting the distribution of fentanyl that resulted in the death of a fellow inmate at a Santa Barbara County jail and in the serious bodily injury of another jail inmate.
Kaelen Jacobkeali Wendel, 32, was found guilty of one count of distribution of fentanyl resulting in death and serious bodily injury, a felony that carries a 20-year mandatory minimum prison sentence and a possible sentence of life imprisonment.
According to evidence presented at a five-day trial, in October 2022, Wendel smuggled fentanyl into a unit of the Santa Barbara County North Branch Jail. He packaged the powerful synthetic opioid in candy containers, according to court documents.
As the new inmate, Wendel handed some fentanyl to his co-defendant, Michael Villapania, 36, of Lompoc, in the expectation that he would receive jail commissary goods in exchange. Villapania then sold the drug to a victim identified in court documents as “J.V.” J.V. then shared the fentanyl with another victim, who is identified in court documents as “E.E.”
After ingesting the drug during the early morning hours of October 20, 2022, E.E. and J.V. overdosed. After an inmate alerted a custody deputy about the overdose, deputies and nurses administered multiple doses of Narcan – a life-saving medication used to reverse opioid overdoses – and performed CPR on both inmates. They revived J.V., but E.E. died.
United States District Judge Maame Ewusi-Mensah Frimpong scheduled a June 21 sentencing hearing for Wendel.
Villapania pleaded guilty on February 1 to one count of distribution of fentanyl. His sentencing hearing is scheduled for June 7, at which time he will face up to 20 years in federal prison.
The Drug Enforcement Administration and the Santa Barbara County Sheriff’s Office investigated this matter.
Assistant United States Attorney Suria M. Bahadue of the Criminal Appeals Section and Assistant United States Attorneys Alexandra Sloan Kelly and Kenneth R. Carbajal of the General Crimes Section are prosecuting this case.
San Diego Man Sentenced to 41 months for Bank, Tax Fraud SchemesRead the Press Release
NEWS RELEASE SUMMARY – March 1, 2024
SAN DIEGO – Alvin Pates of San Diego was sentenced in federal court today to 41 months in prison for participating in a scheme to deceive banks by using straw borrowers and bogus financial information to obtain loans.
According to his plea agreement, beginning as early as July 2014 and continuing through at least April 2020, Pates admitted that he used the names, social security numbers, and credit of the straw borrowers to obtain loans and lines of credit that primarily benefited Pates.
At Pates’ behest, straw borrowers submitted false documentation provided by Pates showing they earned six-figure annual incomes from shell companies operated by Pates. Pates provided the straw borrowers with addresses and phone numbers for the shell companies, where Pates or others acting at his direction confirmed the false employment and income information when contacted by the financial institutions. Pates himself sometimes contacted the banks, pretending to be the straw borrowers, in order to ensure the straw borrowers could pass the security questions asked by the lenders.
Pates acknowledged in his plea agreement that he funneled the majority of the loan proceeds through the bank accounts of one of his shell companies to use for his personal benefit. For example, Pates admitted to using the funds for numerous personal transactions, cash withdrawals, personal living expenses for himself and his family, and to make payments to other credit unions. According to sentencing documents, during six years of the scheme, Pates supported his lifestyle, which included a penthouse apartment, a Corvette, a Mercedes, and a BMW, solely with the proceeds of his fraudulent schemes. In the midst of the scheme, Pates sent a message to one of his assistants, stating that “money is raining.”
According to sentencing documents, Pates recruited many of the straw borrowers from his church. The church members trusted Pates because he possessed an outward façade of morality and wealth. The straw borrowers believed they were starting a business with Pates, and willingly gave Pates 90 percent of the fraudulent loan proceeds as what they thought was their capital contribution. Pates promised the borrowers that he and his company would make all the loan payments. Pates did make the initial loan payments, using funds obtained from other fraudulent loans, only to default on the loans a few months later, ruining the credit and finances of the straw borrowers. Most of the borrowers were unable to pay off the loans; some filed for bankruptcy as a result.
After a number of church members had been financially damaged, Pates began attending another church, continuing the scheme using the name “Al Noble.” At today’s hearing, Pates was ordered to pay restitution of $45,500 to one individual who repaid the fraudulent loans.
In addition to the bank fraud, Pates also admitted to assisting in the preparation of false tax returns for two taxpayers for the calendar year 2015. The tax return for one of the taxpayers falsely stated that the individual received “Other Income” in the amount of $538,462 and paid federal income taxes of $543,643, thus entitling him to a refund of $376,260. Pates supplied false Forms 1099 to the taxpayer to support the return and accompanied the taxpayer to the IRS to submit the false return. The Internal Revenue Service issued a refund check to the taxpayer for $376,260, which was ultimately returned to the IRS.
“This case is especially egregious because Mr. Pates didn’t just rely on the faith of his fellow churchgoers, he preyed on it,” said U.S. Attorney Tara McGrath. “But the direct victims are not the only ones who were hurt; we all pay a price for bank and tax fraud when those costs are passed on.”
“Mr. Pates defrauded not only multiple financial institutions, but also his fellow Americans through these criminal schemes, for which he will now be held accountable,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Following the money is our specialty and, especially when we combine our expertise with our federal partners, our investigations lead to convictions.”
“This arrest and sentencing are the culmination of hard work by numerous local, state, and federal law enforcement agencies over the course of several years. The Secret Service will continue to investigate and pursue justice against those criminal networks who target the citizens of Southern California,” said Jason Reynolds, Special Agent in Charge with the San Diego Field Office of the United States Secret Service.
This case was prosecuted by Assistant U.S. Attorneys Melanie K. Pierson and Loren G. Rene.
DEFENDANT Case Number 20CR2204-CAB
Alvin Pates Age: 54 San Diego, CA
a.k.a. Al Noble
SUMMARY OF CHARGES
Bank Fraud – Title 18, U.S.C., Sections 1344(1) and 2
Maximum penalty: Thirty years in prison, $1 million fine, forfeiture and restitution
Aiding and Advising Preparation of a False Tax Return—Title 26, U.S.C., Section 7206(2)
Maximum penalty: Three years in prison, $250,000 fine, forfeiture and restitution
AGENCIES
U.S. Secret Service
IRS Criminal Investigation
Rutland Man Sentenced to 80 Months in Prison for Robbery SpreeRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on February 29, 2024, Brennan Bigelow, age 33, of Rutland, Vermont, was sentenced by United States District Judge Christina Reiss to a term of 80 months’ imprisonment to be followed by a 3-year term of supervised release. Bigelow previously pleaded guilty to two robberies and, at the same change of plea hearing, admitted participation in two additional robberies and one attempted robbery all occurring from August to December 2022 at five Rutland, Vermont businesses: a convenience store on Woodstock Avenue, a gas station on South Main Street, a restaurant and a gas station on U.S. Route 4 East, and a pharmacy on Woodstock Avenue. In each robbery, Bigelow threatened a store employee with violence, brandished a pellet gun that resembled a firearm, brandished a knife, simulated a concealed handgun or threatened to shoot the cashier.
According to court records, Bigelow told one of his victims that he would shoot the victim in the face. Another victim remains fearful of being alone, experiencing sadness and anger, and wanting Bigelow to spend “life in jail.” Another of Bigelow’s victims reported replaying the robbery, especially when trying to fall asleep. Another explained the incident with Bigelow “was a short ordeal, but it was truly terrifying.” While detained in connection with this federal case, Bigelow was convicted of assaulting another prison inmate and is awaiting sentencing in that case in New York state court.
United States Attorney Nikolas P. Kerest commended the Rutland Police Department for its investigation of this matter. The case was prosecuted by Assistant U.S. Attorneys Jon Ophardt and Colin Owyang. Defendant Brennan Bigelow was represented by Peter Langrock, Esq.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.