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Tuesday 23 January 2024
Kansas man sent to prison for counterfeiting moneyRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced to 57 months in prison for making counterfeit United States currency.
According to court documents, Joseph Bulis, 38, of Wichita pleaded guilty in October 2023, to one count of manufacturing counterfeit currency and one count of possession of a firearm by a felon.
In July 2022, law enforcement went to Bulis’ hotel room in Wichita where they discovered a printer and paraphernalia used to manufacture counterfeit currency. They also found $3,000 in counterfeit money in the forms of $100 and $20 bills. Bulis fled when law enforcement arrived. When he was later apprehended, he had a backpack containing drawing paper, uncut counterfeit bills, and cutting tools.
In a separate incident, Bulis was contacted by law enforcement during a traffic stop and found to have a gun in the vehicle. He is prohibited from having a firearm because of a prior felony conviction.
The U.S. Secret Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case.
Assistant U.S. Attorneys Lanny Welch and Katie Andrusak prosecuted the case.
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Justice Department and Federal Trade Commission Hold Trilateral Meeting with Competition Enforcers from Mexico and CanadaRead the Press Release
Today, the Justice Department participated in a trilateral meeting with enforcers from Mexico’s Federal Economic Competition Commission (COFECE), Canada’s Competition Bureau and the Federal Trade Commission (FTC). Discussions were held among Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division, Chair Lina M. Khan of the FTC, Canadian Commissioner of Competition Matthew Boswell and President Andrea Marván Saltiel of COFECE.
The meeting, which took place in Mexico City, included discussions on competition in the technology and platform sectors and the impact of competition on labor markets, as well as discussions on new enforcement tools and bringing a whole-of-government approach to competition law.
“The competition law agencies of Canada, Mexico and the United States share the common goal to preserve and protect fair and lawful competition,” said Assistant Attorney General Kanter. “I am grateful for the opportunity to meet with our fellow enforcers and discuss opportunities to promote competition and enhance enforcement in North America.”
“This annual trilateral with our enforcement partners lets us share expertise and learning, strengthening our work to promote fair competition and protect the American public from anticompetitive and monopolistic tactics,” said Chair Khan.
Assistant Attorney General Kanter of the Antitrust Division (far right) meets with Chair Lina M. Khan of the FTC, Canadian Commissioner of Competition Matthew Boswell and President Andrea Marván Saltiel of COFECE.The 1995 cooperation agreement between the United States and Canada, the 1999 agreement between the United States and Mexico and the 2001 agreement between Canada and Mexico laid the foundation for these meetings. The agreements commit the agencies to coordinating and cooperating with each other to ensure consistent and effective antitrust enforcement.
Tomorrow, Assistant Attorney General Kanter will deliver a keynote speech at an event hosted by COFECE commemorating the release of a special anniversary book reflecting on the development of competition policy in Mexico. The book includes essays from competition experts around the world and is being released in honor of the 10th anniversary of the agency and 30th anniversary of the passage of Mexico’s first competition law.
Jury Convicts Registered Sex Offender of Sexually Exploiting a MinorRead the Press Release
BENTON, Ill. – A federal jury convicted a registered sex offender in St. Clair County of sexually exploiting another minor.
Members of the jury found Dan R. Waeckerle, Jr., 44, of Swansea, guilty of soliciting an obscene visual depiction of a minor, transferring obscene matter to a minor, sexual exploitation of a minor and offense by a registered sex offender.
“I’m grateful for the law enforcement agencies who investigated this case and pursued justice for Waeckerle’s victim and prevented other children from his abuse,” said U.S. Attorney Rachelle Aud Crowe.
According to court documents, Waeckerle had sexually explicit conversations with a minor via text message in July 2021. Evidence presented during the trial revealed Waeckerle sent the minor a nude image, requested sexually explicit images from the minor, and discussed meeting the minor for sex.
“We are thankful for the training and resources provided by our federal partners which have allowed our detectives to be extremely successful in investigating cases such as these,” said O’Fallon Police Captain Mike Mojzis. “We appreciate the hard work and dedication of our detectives in striving to seek justice for the victim.”
Waeckerle was previously convicted of aggravated sexual abuse against a minor in Hamilton County in 2010.
“The U.S. Secret Service remains committed to investigating and arresting individuals who sexually exploit children and transmit child sexual abuse material,” said Stephen S. Webster, Resident Agent in Charge of the Secret Service Springfield Resident Office. “We are proud of our partnerships with the federal, state, and local agencies who work collectively to investigate and prosecute crimes against minors. These predators cause significant and long-lasting damage, and we are dedicated to holding them accountable.”
Sexual exploitation of a minor carries a statutory minimum of 25 years’ imprisonment due to Waeckerle’s prior criminal history. Waeckerle’s sentencing hearing is scheduled for 9:30 a.m. on May 21, 2024, at the federal courthouse in Benton.
This investigation was conducted by the U.S. Secret Service Central and Southern Illinois Financial and Cyber Crimes Task Force, with members from the O’Fallon Police Department leading the investigation. Additional support was provided by the Illinois Attorney General’s Office, Swansea Police Department and the Illinois State Police. Assistant U.S. Attorneys Ali Burns and Zoe Gross 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.
Honduran National Indicted for Illegal Re-Entry of Removed AlienRead the Press Release
NEW ORLEANS, LOUISIANA – HIBIS TURCIO-SANCHEZ, age 44, a native of Honduras, was indicted on January 19, 2024, for illegal re-entry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, TURCIO-SANCHEZ reentered the United States illegally after being previously deported on October 14, 2016. If convicted, TURCIO-SANCHEZ faces an enhanced sentence of up to 10 years imprisonment, up to 3 years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee. TURCIO-SANCHEZ faces an enhanced sentence due to his 2016 felony conviction for assaulting a federal official.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of United States Immigration and Customs Enforcement and Homeland Security Investigations in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Grants Man Charged with Assaulting a Federal OfficerRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that Stephen Jaymes Montano appeared in federal court on an indictment charging him with assault upon a federal officer inflicting bodily injury. Montano, 28, of Grants, will remain in temporary custody pending a detention hearing, which is scheduled for January 25, 2024.
According to the indictment, on Sept. 21, 2023, Montano intentionally assaulted John Doe, an officer and employee of the New Mexico Department of Corrections, while John Doe was assisting officers and employees of the United States Marshals Service in the performance of official duties. Montano allegedly inflicted bodily injury by throwing a bicycle at John Doe.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Montano faces 20 years in prison.
The FBI Albuquerque Field Office investigated this case with assistance from the New Mexico State Police Investigations Bureau. Assistant U.S. Attorney Kimberly Bell is prosecuting the case.
View the Indictment# # #
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Forsyth Man Indicted for Springfield Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – A Forsyth, Mo., man was indicted by a federal grand jury today for robbing a Springfield bank.
Richard Campbell, 59, was charged in an indictment returned by a federal grand jury in Springfield. Today’s indictment alleges that Campbell robbed Guaranty Bank, 1905 W. Kearney St., in Springfield, on Jan. 5, 2024.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the FBI.
Former Police Chief and Doctor Plead Guilty to Insider Trading Around Alexion Pharmaceuticals’ Acquisition of Portola PharmaceuticalsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that SHAWN CRONIN and PAUL FELDMAN each pled guilty before U.S. Magistrate Judge Sarah Netburn to one count of securities fraud in connection with their participation in an insider trading scheme surrounding the announcement of Alexion Pharmaceutical, Inc.’s acquisition of Portola Pharmaceuticals, Inc. CRONIN and FELDMAN were arrested in June 2023.
U.S. Attorney Damian Williams said: “As a law enforcement leader, Cronin was sworn to uphold the law and was trusted to set an example for junior officers. And as a medical doctor, Feldman held a position of trust and respect in our society. Rather than live up to their posts, these men broke the rules to try to make a quick buck. Their convictions reflect my Office’s ongoing commitment to relentlessly rooting out corruption in our financial markets.”
According to the allegations in the Indictment and statements made in public court proceedings:
In 2020, CRONIN, FELDMAN, and others engaged in an insider trading scheme surrounding the announcement of Alexion’s acquisition of Portola. In April 2020, before that acquisition was publicly announced, CRONIN’s childhood friend, a then-vice president at Alexion, misappropriated material, non-public information (“MNPI”) about the acquisition and provided it to CRONIN so that CRONIN could profitably trade in securities.
In turn, CRONIN, who, at the time, was a police sergeant in Dighton, Massachusetts, and went on to become the police chief, provided another friend with the MNPI about Portola’s pending acquisition, both so that that friend could trade in advance of the acquisition and so that that friend would assist CRONIN in formulating trading strategies to maximize CRONIN’s trading profits.
The friend CRONIN tipped was a physician who went on to tip his friend and colleague, FELDMAN. FELDMAN, for his part, aggressively bought Portola call options and also tipped at least five additional individuals who traded on the tip.
After Alexion’s acquisition of Portola was publicly announced on the morning of May 5, 2020, causing Portola’s stock price to increase significantly, CRONIN, FELDMAN, and others who had purchased shares and options based on the inside information sold their securities, reaping millions of dollars of illegally obtained profits.
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CRONIN, 44, of Dighton, Massachusetts, and FELDMAN, 49, of Poughquag, New York, each pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. CRONIN and FELDMAN will be sentenced by U.S. District Judge Gregory H. Woods on May 13, 2024.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Sarah Mortazavi, and Samuel P. Rothschild are in charge of the prosecution.
Former Chicopee Superintendent of Schools Admits to Lying About Threatening Messages She Sent to Chief of Police CandidateRead the Press Release
BOSTON – The Superintendent of the Chicopee Public Schools pleaded guilty today to making false statements in connection with her sending 99 threatening messages to a candidate for Chicopee Police Chief.
Lynn Clark, 53, of Belchertown, pleaded guilty to two counts of making false statements. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for April 30, 2024. Clark was arrested and charged by criminal complaint on April 6, 2022 and subsequently indicted by a federal grand jury on April 21, 2022.
In December 2021, the City of Chicopee was in the process of hiring a new Police Chief. On Dec. 3, 2021, law enforcement received a report that a candidate for the position was receiving threats intended to force the victim to withdraw their application for Chicopee Police Chief. In November 2021, after submitting their application for Police Chief, the victim received numerous text messages from unknown numbers containing threats to expose information that would cause the victim reputational harm. As a result, the victim withdrew their application and the City delayed the selection process.
The investigation revealed that a total of approximately 99 threatening messages were sent from fictitious phone numbers purchased through a mobile app. Phone and internet records revealed that these numbers were purchased by Clark and that these accounts sent each of the threatening messages.
On or about Dec. 6, 2021, Clark falsely claimed to be a victim and stated to agents that she received threatening text messages from unknown phone numbers, when, in fact she sent the messages to herself. Clark also falsely named other City employees who she felt may be responsible for sending the messages. On or about Feb. 7, 2022, Clark again falsely stated that she did not know who sent the messages in addition to denying that she had downloaded a mobile app with which she purchased the fictitious phone numbers to send the messages. Clark later admitted that she did indeed send the messages and downloaded the app.
The charges of making false statements each provide for a sentence of up to five years in prison, up to one of supervised release and a fine of up to $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office made the announcement today. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Office is prosecuting the case.
Former CFO Sentenced to Prison, Ordered to Pay Restitution for Embezzling More Than $3 Million from EmployerRead the Press Release
ST. PAUL, Minn. – An Arizona man has been sentenced to 24 months in prison followed by two years of supervised release and full restitution after embezzling more than $3 million from his employer, announced United States Attorney Andrew M. Luger.
According to court documents, David Efrem Katz, 56, was the former Chief Financial Officer (CFO) of Durand and Associates (“D&A”), a property management company that specialized in servicing homeowner associations (“HOAs”). Between 2012 and 2017, Katz embezzled over $3 million from D&A and its client HOAs.
Katz worked for D&A from approximately 1998 to 2017, starting as an accountant and eventually becoming CFO. As CFO, Katz had authorization to open credit cards in D&A’s name and use those credit cards for business expenses. However, Katz was not authorized to charge personal expenses to the cards, take out loans on D&A’s behalf without the owner’s approval, or use funds belonging to D&A or its HOA clients to pay his personal expenses.
Beginning in at least 2012 and continuing into 2017, Katz embezzled over $3 million from D&A and its HOA clients. Katz, who as CFO of D&A was responsible for payroll, paid himself significantly more than his agreed upon salary. Between 2011 and 2017, Katz paid himself $6,500 every two weeks as a salary despite his base salary never being more than $47,500 annually.
Katz also reimbursed himself for personal expenses and business expenses he never actually incurred. Katz paid himself between approximately $6,000 and $10,000 in reimbursements every two weeks. He labeled these payments as miscellaneous earnings and reimbursements, “recovery loans,” bonuses, and commissions. Katz never loaned or invested money in D&A that he was entitled to “recover.” To the extent he earned bonuses and commissions, they were in amounts significantly less than what he paid himself. And although Katz incurred some legitimate business-related expenses, they were in amounts significantly less than what he reimbursed himself.
On June 26, 2023, Katz pleaded guilty to one count of wire fraud. He was sentenced today in U.S. District Court before Judge Katherine M. Menendez to one count of wire fraud.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Matthew S. Ebert and Harry M. Jacobs prosecuted the case.
Football ticket scammer sent to prisonRead the Press Release
HOUSTON – A 49-year-old California resident has been sentenced for orchestrating a ticket scam across the United States that included a Texas A&M football game, announced U.S. Attorney Alamdar S. Hamdani.
Derrick Langford pleaded guilty Aug. 24, 2023.
U.S. District Judge Charles Eskridge has now ordered Langford to serve 24 months in federal prison to be immediately followed by one year of supervised release.
“For years, Langford engaged in a multi-level fraud,” said Hamdani. “In doing so, he victimized identity theft victims, unsuspecting internet buyers and, ultimately, the venues, from football stadiums to music arenas, who bore the monetary loss. But the perceived anonymity of the internet did not protect him. His scheme unraveled thanks to the efforts of the 12th Man Foundation at Texas A&M University.
At the time of his plea, Langford admitted he used email to obtain stolen credit card information from victims across the United States. He used that data and false identities to buy tickets for sporting events, concerts and other entertainment venues nationwide. He then re-sold the tickets on internet-based resale sites like Ticket Liquidator.
One such event tied to Langford was the Texas A&M football game against Clemson Sept. 8, 2018. At the time of the plea, Langford admitted he created false buyer accounts and used stolen credit card numbers to buy tickets to that game and then resold the fraudulently purchased tickets on resale sites to unsuspecting buyers.
Texas A&M discovered the fraud and invalidated the tickets. However, some tickets had already been sold to unsuspecting buyers which caused the university to incur a 100% loss on the fraudulent tickets.
As the scheme continued, Langford received stolen credit card information and personal identifying information of more than 75 victims in one of his email accounts.
Langford was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with the assistance of the Texas A&M University Police Department. Assistant U.S. Attorneys Quincy Ollison and Belinda Beek prosecuted the case.
Federal Jury Finds Hernando Man Guilty of Destruction of Evidence and Accessing with Intent to View Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Basilio Jim Diaz (64, Hernando County) guilty of destruction of evidence and accessing with the intent to view child sexual abuse material. Diaz faces a maximum penalty of 20 years in federal prison for each offense. His sentencing hearing is scheduled for April 17, 2024. Diaz has also agreed to forfeit his electronic devices which were used in the commission of the offense.
According to testimony and evidence presented at trial, on March 9, 2023, the FBI executed a search warrant at Diaz’s home seeking evidence of child exploitation. When the FBI announced their presence, Diaz refused to exit his home. FBI SWAT members used an armored vehicle to break through the front door and obtain a visual inside the home. The SWAT agents also deployed two drones to better assess the situation inside the home. After nearly an hour, Diaz disabled one of the drones and while holding the second drone, the SWAT agents safely entered the home and detained Diaz. A search of the home revealed that Diaz had spent those 45 - 50 minutes destroying evidence. Despite Diaz’s efforts, the FBI used forensic tools to recover thousands of images and videos depicting the child sexual abuse and exploitation of children from Diaz’s laptop. Agents also recovered two child-like sex dolls.
This case was investigated by the FBI, the Hernando County Sheriff’s Office, and Task Force Officers from the Tampa Police Department and the Pasco Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Ilyssa M. Spergel and Ross D. Roberts.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Hearings in Separate Middle Georgia Fraud CasesRead the Press Release
MACON, Ga. – Several fraud cases under investigation in the Middle District of Georgia—the first involving family members who illegally wrote millions in checks to themselves from their employer’s operating account and the second involving a woman who attempted to collect more than $3.5 million in undue tax refunds by falsifying documents and making up a business—had hearings in federal court today.
Eva Rebecca Wells, 75, and Billy Lee Wells, Jr., 47, both of Macon, pleaded guilty to conspiracy to defraud a financial institution before U.S. District Judge C. Ashley Royal on Jan. 23. Both face a maximum of 30 years in prison to be followed by five years of supervised release and a $1,000,000 fine. Mr. Wells also pleaded to an additional charge of making and subscribing a false return, which carries a maximum of three years in prison followed by one year of supervised release and a $100,000 fine. A sentencing date will be determined by the Court.
Lonnise Janelle Andrews, 45, of Macon, was sentenced to serve 51 months in prison to be followed by three years of supervised release and ordered to pay $331,758 in restitution to the IRS by U.S. District Marc T. Treadwell on Jan. 23. Andrews previously pleaded guilty to one count of making and subscribing a false return, one count of false claim for a tax credit and one count of false claim for a refund on Sept. 11, 2023. Andrews is not eligible for parole.
“These schemes are costly to all involved; our office will seek justice on behalf of those who are victims of fraud, whether it is small businesses or taxpayers,” said U.S. Attorney Peter D. Leary. “People engaged in fraud are breaking federal law and will be held accountable for these crimes.”
“The hearings today serve as a warning to individuals who commit fraud upon others and the U.S. government that their criminal acts will come with consequences,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents and our law enforcement partners will continue investigating and bringing to justice those who participate in illicit schemes to enrich themselves.”
“These fraud scams, although not violent, are not victimless and can be devastating to local business and ruin livelihoods,” said Robert Gibbs, Supervisory Senior Resident Agent of FBI Atlanta’s Macon office. “The FBI is dedicated to working with our partners to hold anyone accountable who would steal from hard working and honest individuals, rather than put in the work themselves.”
According to court documents in the Wells case, Eva Wells was the Office Manager for Mid-Georgia Sales and was responsible for its finances, including issuing weekly payroll and making other payments on behalf of the business. Her son, Billy Lee Wells, Jr., was also employed at Mid-Georgia Sales, working in IT and sales. In Dec. 2008, Eva Wells began writing unauthorized checks to herself and her son from the company’s general operating fund, as opposed to the account used for payroll. When the theft was discovered, a full accounting was conducted. Between Dec. 31, 2008, and May 10, 2019, Eva Wells wrote a total of $3,404,772.22 in unauthorized checks to Billy Lee Wells, Jr. which were either cashed or deposited in his bank account. In addition to the checks made to Billy Lee Wells, Jr., Eva Wells also wrote unauthorized checks to herself which she cashed or deposited into her bank account.
For information about the Andrews case, please visit https://www.justice.gov/usao-mdga/pr/macon-resident-pleads-guilty-35-million-tax-filing-scheme.
The Wells case was investigated by FBI, IRS and the Bibb County Sheriff’s Office. The Andrews case was investigated by IRS.
Assistant U.S. Attorney Elizabeth Howard is prosecuting both cases for the Government.
Federal Charges Filed After Traffic Stop Yields More Than 200 Pounds of MethamphetamineRead the Press Release
PORTLAND, Ore.—A Portland man is facing federal charges today after he was caught transporting more than 200 pounds of methamphetamine on Interstate 5 near Tualatin, Oregon, announced the U.S. Attorney’s Office for the District of Oregon.
Juan Manuel Berrelleza Leyva, 22, a Mexican national residing in Portland, has been charged by criminal complaint with conspiring to possess and possessing with intent to distribute methamphetamine and heroin.
According to court documents, on January 21, 2024, law enforcement observed the suspect’s vehicle traveling north between Salem, Oregon, and Tualatin. After briefly failing to yield to the investigators’ attempts to initiate a traffic stop, Leyva, the vehicle’s driver and sole occupant, pulled over.
After a narcotics K-9 alerted to the vehicle, investigators searched it and located more than 200 pounds of methamphetamine concealed in a duffle bag, suitcase, and trash bag. Investigators also located and seized just over two pounds of heroin. Leyva admitted to entering the United States approximately seven months prior and being responsible for picking up drug shipments in other states and transporting them to the Portland area.
Leyva made his first appearance in federal court today before a U.S. Magistrate Judge and was ordered detained pending further court proceedings.
This case is being investigated jointly by the U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), and the Westside Interagency Narcotics Team (WIN). It is being prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
WIN is a Washington County, Oregon-based High Intensity Drug Trafficking Area (HIDTA) task force that includes members from the Washington County Sheriff’s Office, Beaverton and Hillsboro Police Departments, Oregon National Guard Counter Drug Program, DEA, FBI, and HSI.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Federal Attorney Pleads Guilty to Conspiring to Sexually Exploit Numerous ChildrenRead the Press Release
A former Federal Deposit Insurance Corporation (FDIC) attorney pleaded guilty today to conspiring to sexually exploit numerous children.
According to court documents, between January 2018 and October 2021, Mark Black, 50, of Arlington, Virginia, was a member of two online groups dedicated to exploiting children. The goal of the two groups was to locate prepubescent girls online and convince them to livestream themselves engaging in sexually explicit conduct. Black and his co-conspirators would covertly record this conduct and share the videos with each other.
In July 2019, Black induced a prepubescent minor to engage in sexually explicit conduct on a live-streaming application while screen-recording that activity. That same month, Black and a co-conspirator also groomed another prepubescent minor to engage in sexually explicit acts on a photo and video-sharing application. The co-conspirator surreptitiously hacked into that girl’s live-video feed and recorded the sexual acts before sending them to Black.
Black was formerly the Arlington Aquatic Club (AAC) board president.
Black pleaded guilty to one count of conspiracy to produce child pornography and one count of coercion and enticement. He is scheduled to be sentenced on April 30 and faces a mandatory minimum of 15 years in prison and a maximum penalty of life 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 Jessica D. Aber for the Eastern District of Virginia, Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division, and Assistant Inspector General for Investigations Shimon Richmond of the FDIC Office of Inspector General (FDIC-OIG) made the announcement.
The FBI and FDIC-OIG investigated the case.
Trial Attorneys McKenzie Hightower, Kaylynn Foulon, and James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Lauren Halper for the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Any individuals who believe they or someone they know may have been victimized by Black are encouraged to contact the FBI at 202-278-2000 and ask to speak to the Child Exploitation and Human Trafficking Task Force.
FDIC Attorney Pleads Guilty to Conspiring to Sexually Exploit Numerous ChildrenRead the Press Release
ALEXANDRIA, Va. – A Federal Deposit Insurance Corporation (FDIC) attorney pleaded guilty today to conspiring to sexually exploit numerous children.
According to court documents, between January 2018 and October 2021, Mark Black, 50, of Arlington, was a member of two online groups dedicated to exploiting children. The goal of the two groups was to locate prepubescent girls online and convince them to livestream themselves engaging in sexually explicit conduct. Black and his co-conspirators would covertly record this conduct and share the videos with each other.
In July 2019, Black induced a prepubescent minor to engage in sexually explicit conduct on a live-streaming application while screen-recording that activity. That same month, Black and a co-conspirator also groomed another prepubescent minor to engage in sexually explicit acts on a photo and video-sharing application. The co-conspirator surreptitiously hacked into this girl’s live-video feed and recorded the sexual acts before sending them to Black.
Black was formerly the Arlington Aquatic Club (AAC) board president.
Black pleaded guilty to one count of conspiracy to produce child pornography and one count of coercion and enticement. He is scheduled to be sentenced on April 30 and faces a mandatory minimum term of 15 years in prison and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Michael D. Nordwall, Assistant Director of the FBI’s Criminal Investigative Division; and Shimon Richmond, Assistant Inspector General for Investigations of the FDIC Office of Inspector General (FDIC-OIG), made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorney Lauren Halper and Trial Attorneys McKenzie Hightower, Kaylynn Foulon, and James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-146.
Any individuals who believe they or someone they know may have been victimized by Black are encouraged to contact the FBI at 202-278-2000 and ask to speak to the Child Exploitation and Human Trafficking Task Force.
Drug trafficker who illegally possessed more than 20 guns – twelve purchased by a “straw buyer” -- pleads guiltyRead the Press Release
Seattle – a 32-year-old Federal Way man pleaded guilty today in U.S. District Court in Seattle to four federal felonies involving guns and drugs, announced U.S. Attorney Tessa M. Gorman. De’ondre Lamontia Phillips, aka Deondre Lamontia McDougle, is half of a pair of defendants involved in a firearms straw purchasing scheme that involved the purchase of 100 firearms in a two-year period. Phillips pleaded guilty today to possession of controlled substances with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and two counts of illegal possession of firearms. Philips is scheduled to be sentenced by U.S. District Judge Ricardo S. Martinez on April 26, 2024.
According to records filed in the case, the investigation began in late January 2023, with the assault and attempted robbery of a woman in Rainier Valley. The victim was able to flee in her car. Police found a firearm in her vehicle that had been dropped by one of the assailants. A check of the firearm revealed it had been purchased by 31-year-old Kent resident Dion Jamar Cooper in December 2022. That recovery led the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) to check Cooper’s purchase history. Cooper had purchased 107 firearms since June 2021. On 24 different instances he purchased multiple firearms – sometimes four or more. Of the 107 firearms identified as being purchased in this scheme, 24 of the guns have been recovered and linked to crimes.
During March and April of 2023, agents surveilled Cooper as he made arrangements to purchase additional firearms. Agents identified De’ondre Lamontia Phillips as the person who drove Cooper to the gun shops where he purchased the firearms. Phillips is prohibited from purchasing and possessing firearms due to convictions for distribution of heroin (2014) and convictions for illegal firearms possession and two counts of assault (2009). Surveillance of the two revealed Cooper turning the firearms over to Phillips who stored them in his residence.
On April 12, 2023, investigators arrested Phillips and searched his apartment, his car, and his storage unit. They found distribution amounts of fentanyl pills and methamphetamine as well as drug packaging materials and scales. In all, Phillips possessed 23 firearms – most of them handguns – and some firearms that were privately manufactured with no serial numbers. Ten of the firearms had been purchased by co-defendant Cooper on the day of the search and arrest.
Possession of controlled substances with intent to distribute is punishable by up to 20 years in prison. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a mandatory minimum five years in prison to run consecutive to any sentence imposed on the other charges. Unlawful possession of firearms is punishable by up to fifteen years in prison.
Prosecutors have agreed to recommend no more than eight years in prison. Judge Martinez is not bound by the recommendation and is free to recommend any sentence allowed by law.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Drug Task Force Operation Leads to 19 ArrestsRead the Press Release
Acting United States Attorney Susan T. Lehr announced that on January 23, 2024, an operation led by the Federal Bureau of Investigation and Nebraska State Patrol led to the arrest of 19 people and the unsealing of at least nine indictments. Those arrested and a summary of their charges and the penalties include the following.
An indictment was unsealed charging Alejandro Ruiz (age 41), of California, Guadalupe Ramirez (38) of North Platte, Roberto Duran (33) of Brule, Michael Shawn Harrell (47) of Ogallala, Eduardo Gomez (33) of North Platte and Carl McKinney (37) from Kentucky, with conspiracy to distribute over 500 grams of methamphetamine between January of 2021, and January of 2022. A conviction on that charge carries a possible penalty of not less than 10 years to life in prison, a fine of up to $10 million; and a term of supervised release not less than five years. Ramirez, Gomez, and Harrell also face charges of possessing a firearm during and in furtherance of a drug trafficking crime. If convicted, they each face a term of imprisonment of five years to life, consecutive to the drug charge; a $250,000 fine and up to 5 years of supervised release. Harrell was also charged with being a felon in possession of a firearm. A conviction of that charge carries a penalty of not more than 10 years’ imprisonment, a $250,000 fine and up to three years of supervised release.
An indictment was unsealed charging Jamie Hopkins (37), Michael Stroble (30); Joey Romero (36), and Luke Schwartz (30) all of North Platte, with conspiracy to distribute 50 grams or more of methamphetamine (actual) and distribution of meth between July 2022 through February of 2023. The penalties are not less than 10 years to life in prison, a fine of up to $10 million; and a term of supervised release not less than five years.
An indictment was unsealed charging Jessica Binegar (37) of North Platte, John Hernandez (35) of Lincoln and Brad Leeper (46) of North Platte with distribution of 5 grams or more of meth (actual) between March and June of 2022. Leeper was also charged with being a felon in possession of a firearm. The possible penalties for distribution are not less than five years, nor more than 40 years in prison; a fine of up to $5 million; and a term of supervised release following the prison term of not less than four years.
Wesley Kraft (36) of Lincoln, was charged with distribution of five grams or more of meth (actual) during April of 2023 and being a felon in possession of a firearm.
Timothy Huisman (39) of North Platte, was charged with distribution of five grams or more of meth (actual) in February of 2023.
Shane Ross (46) of Ogallala, was charged with distribution of five grams or more of meth (actual) in July of 2022.
Richard Torres (44) of Brule, was charged with conspiracy and distribution of more than five grams of meth (actual) between December 2021 and August of 2022.
Timothy Maisner (62) of North Platte, with possession with intent to distribute of 50 grams of more of methamphetamine (actual) and distribution of methamphetamine during January and July of 2023.
Eddie Houpt (59) of North Platte, was charged with distribution of five grams or more of meth (actual) in June of 2022.
To report tips on drug trafficking, please contact the FBI at tips.fbi.gov or 402-492-8688 or the Nebraska Crime Stoppers tipline at 1-800-422-1494.
These cases were investigated by the CODE Task Force which is made up of law enforcement agencies throughout a 22-county area in west-central/southwest Nebraska and includes the Federal Bureau of Investigation, Nebraska State Patrol, Homeland Security Investigations, North Platte Police Department, Lexington Police Department, and Army National Guard Counter Drug Unit. The investigation and arrests were also assisted by the U.S. Postal Service, Dawson County Sheriff’s Office, Ogallala Police Department, La Vista Police Department, the Tri-Cities Drug Enforcement Team (TRIDENT) Task Force, the Western Intelligence Narcotics Group (WING) Task Force, the Capitol Region Safe Streets Task Force (CRSSTF), the Lincoln/Lancaster County Metro Fugitive Task Force, the Lincoln and Keith County Attorney’s Offices, and Nebraska District 11 Probation Office.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF)
operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal
organizations that threaten the United States using a prosecutor-led, intelligence-driven,
multi-agency approach. Additional information about the OCDETF Program can be found at
https://www.justice.gov/OCDETF.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
- Drug Kingpin Pleads Guilty to Trafficking Mexican-Origin Cocaine into Georgia
Dallas Business Owner Charged with Tax EvasionRead the Press Release
A Westlake man who owns several businesses, bars and nightclubs in the DFW area who allegedly hasn’t paid taxes since 1992 has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Dhanesh Deoraj Ganesh was indicted Wednesday, January 17th on five counts of tax evasion, one count of conspiracy to possess with intent to distribute a controlled substance, and one count of conspiracy to launder monetary instruments. He was arrested on Friday and made his initial appearance before U.S. Magistrate Judge Rebecca Rutherford Monday.
According to the indictment, Mr. Ganesh, 62, allegedly concealed his ownership in his businesses by using nominee names, including his ex-wife, his brothers, and his sons. Mr. Ganesh did not have bank accounts in his personal name and did not have signatory authority on bank accounts opened in the names of the companies he controlled. Payments from these businesses were collected in check and cash form. The checks were cashed at check-cashing businesses and then used to purchase cashier’s checks in amounts under $3,000.
Mr. Ganesh has not filed a personal or business income tax return since 1992.
The scheme allegedly resulted in approximately $1.6 million in unpaid taxes.
In addition, Mr. Ganesh and others used some of the restaurants and bars to sell cocaine.
An indictment is merely an allegation of criminal conduct, not evidence. Mr. Ganesh is presumed innocent until proven guilty in a court of law.
If convicted, he faces a maximum penalty of 5 years in prison for each of the five counts of tax evasion, 20 years in prison for conspiracy to possess with intent to distribute a controlled substance, and 20 years in prison for conspiracy to launder monetary instruments.
IRS – Criminal Investigations’ Dallas Field Division conducted the investigation. Assistant U.S. Attorney Mary Walters of the Northern District of Texas is prosecuting the case.
Current and Former Owners of Center City Philadelphia Pharmacy Agree to Pay over $4.6 Million to Resolve Civil Investigations of Improper Medicare and Medicaid BillingRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that Jai Shri Krishna LLC, the current owner of Pennmark Pharmacy in Philadelphia, and Pennmark Pharmacy Inc., the former owner of the pharmacy, have separately agreed to pay, in total, over $4.6 million to resolve the False Claims Act liability of Jai Shri Krishna and its pharmacist and the unjust enrichment liability of Pennmark Pharmacy Inc.
Jai Shri Krishna LLC has operated Pennmark Pharmacy on South Street in southwestern Center City since January 2018. During that time, Antim Patel, a member of the LLC, has been Pennmark Pharmacy’s principal pharmacist. Jai Shri Krishna LLC and Mr. Patel will jointly pay $3,955,173.79 to the federal government to resolve allegations that they violated the False Claims Act by billing Medicare and Medicaid for prescription medications that were not actually dispensed during the period from January 12, 2018, through September 30, 2020. These medications include but are not limited to Latuda, Sprycel, Metformin Hydrochloride, Truvada, Advair Diskus, Genvoya, Triumeq, Tremfya, Tivicay, Breo Ellipta, Anoro Ellipta, Spiriva Respimat, Januvia, Vanos 0.1% cream, Isentress, and Biktarvy. In some cases, such as for Metformin Hydrochloride and Vanos 0.1% cream, the government alleges that Jai Shri Krishna LLC billed Medicare for high-cost formulations of the medications while dispensing lower-cost formulations to beneficiaries.
As part of their resolution with the United States, Jai Shri Krishna LLC and Antim Patel have entered into an integrity agreement with the Department of Health and Human Services, Office of the Inspector General. The integrity agreement requires them to undertake substantial compliance obligations and to contract with an Independent Review Organization that will conduct third-party audits of their Medicare claims and drug inventory.
Pennmark Pharmacy Inc. has separately agreed to pay $700,530 to resolve allegations that it and its principal, Engin Celik, were unjustly enriched as a result of billing Medicare and Medicaid, during the period from June 17, 2015, through January 11, 2018, for prescription medications that were not actually dispensed. These medications include but are not limited to Symbicort, Aripiprazole, Ventolin HFA, Isentress, Sensipar, Advair Diskus, Prezista, Renvela, and Flovent HFA.
“Pharmacies and pharmacists are in a position to serve their communities as vital components of our medical system; they have a responsibility not to abuse their positions for profit,” said U.S. Attorney Romero. “Taxpayers expect that their dollars will be spent on medications needed by Medicare and Medicaid beneficiaries. The U.S. Attorney’s Office works every day to ensure that taxpayer dollars are not wasted on fraud and abuse.”
“Pharmacies are responsible for all claims they submit to Medicare and Medicaid,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services Office of the Inspector General. “HHS-OIG and the U.S. Attorney’s Office take allegations of health care fraud seriously and will work together to ensure taxpayer dollars are only spent on bona fide medical claims.”
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorneys Elizabeth L. Coyne and Rebecca S. Melley and Auditor George Niedzwicki.
Connecticut Man Charged with Drug Trafficking in Burlington, VermontRead the Press Release
Burlington, Vermont – The United States Attorney for the District of Vermont stated that Jahking Allah, also known as “Stop Sign,” 44, of Quaker Hill, Connecticut was arrested on Friday, January 19, 2024 and subsequently charged by federal criminal complaint with distribution of cocaine base. Allah’s initial appearance before U.S. Magistrate Judge Kevin J. Doyle is scheduled for Wednesday, January 24 at 3:30 p.m.
According to court records, Allah sold cocaine base to a cooperating subject in Burlington on two dates in January 2024. Then, on January 19, law enforcement executed a search warrant at 195 St. Paul Street, Apartment A, where Allah was staying. Within the apartment, law enforcement found seven handguns, two of which had previously been reported stolen. Seven is among the largest number of pistols that the Burlington Police Department has ever recovered during a single search warrant execution. Also within the apartment were approximately 85 grams of suspected cocaine base, approximately 25 grams of suspected fentanyl, and multiple digital scales.
If convicted of the current charges, Allah faces a maximum sentence of 20 years’ imprisonment. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines and the United States Code. The United States Attorney emphasizes that the charges in the complaint are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty.
U.S. Attorney Nikolas Kerest commended the investigatory efforts of the Burlington Police Department and the Drug Enforcement Administration.
The prosecutor is Assistant United States Attorney Nicole Cate. Allah is represented by the Office of the Federal Public Defender.
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 https://www.justice.gov/psn.
Colorado Man Sentenced for Church Arson in Federal Hate Crime CaseRead the Press Release
A Colorado man was sentenced to 39 months in prison for a hate crime charge in connection with a fire that he set to a church in Loveland, Colorado, on Jan. 19, 2023. Darion Ray Sexton, 22, pleaded guilty to a federal hate crime charge on May 5, 2023.
“Places of worship are critical for our communities, and this office stands ready to protect them,” said U.S. Attorney Cole Finegan for the District of Colorado. “Religious freedom means being free to worship without fear. Our office will take every appropriate action to ensure that every Coloradan enjoys this essential freedom.”
“This defendant has now been held accountable for his deliberate attack on the church,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “No one should live in fear because of their religious beliefs. The Justice Department will continue to vigorously prosecute those who seek to destroy houses of worship and interfere with the fundamental right to practice religion freely.”
“This defendant admitted he set out to destroy this church, which was determined to be a federal hate crime,” said Special Agent in Charge Mark D. Michalek of the FBI Denver Field Office. “FBI Denver worked with the Loveland Police Department to bring this man to justice. Anyone who attacks a house of worship will get the full attention of the FBI. In addition to seeking justice for these crimes, the FBI remains committed to providing resources for potential victims, such as the event with faith leaders held in this county the day before the crime occurred.”
“Arson is not only destructive and deadly, but also undermines the sense of safety within places of worship,” said Special Agent in Charge Brent Beavers of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “We immediately committed all ATF resources to addressing the impact of this arson by deploying our certified fire investigator, an ATF Task Force Officer with their ATF trained accelerant detection canine and ATF Laboratory services to analyze fire debris and evidence. Early and continued collaboration with our local and federal partners ensured justice once again prevailed.”
According to court documents, Sexton pleaded guilty to intentionally setting fire to the church in the evening hours of Jan. 19, 2023. Sexton admitted that he set this fire by throwing two Molotov cocktails at the church — one at the front door and the other at the basement. Sexton further admitted that he was motivated to set this fire due to the religious character of the church and that he intended to destroy the church.
The FBI, ATF and the Loveland Police and Fire Departments conducted the investigation.
Assistant U.S. Attorney Bryan D. Fields for the District of Colorado and Trial Attorney Maura White of the Justice Department’s Civil Rights Division prosecuted the case.
Colorado Man Sentenced for Church Arson in Federal Hate Crime CaseRead the Press Release
A Colorado man was sentenced today to 39 months in prison for a hate crime charge in connection with a fire that he set to a church in Loveland, Colorado, on Jan. 19, 2023. Darion Ray Sexton, 22, pleaded guilty to a federal hate crime charge on May 5, 2023.
“This defendant has now been held accountable for his deliberate attack on the church,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “No one should live in fear because of their religious beliefs. The Justice Department will continue to vigorously prosecute those who seek to destroy houses of worship and interfere with the fundamental right to practice religion freely.”
“Places of worship are critical for our communities, and this office stands ready to protect them,” said U.S. Attorney Cole Finegan for the District of Colorado. “Religious freedom means being free to worship without fear. Our office will take every appropriate action to ensure that every Coloradan enjoys this essential freedom.”
“This defendant admitted he set out to destroy this church, which was determined to be a federal hate crime,” said Special Agent in Charge Mark D. Michalek of the FBI Denver Field Office. “FBI Denver worked with the Loveland Police Department to bring this man to justice. Anyone who attacks a house of worship will get the full attention of the FBI. In addition to seeking justice for these crimes, the FBI remains committed to providing resources for potential victims, such as the event with faith leaders held in this county the day before the crime occurred.”
“Arson is not only destructive and deadly, but also undermines the sense of safety within places of worship,” said Special Agent in Charge Brent Beavers of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “We immediately committed all ATF resources to addressing the impact of this arson by deploying our certified fire investigator, an ATF Task Force Officer with their ATF trained accelerant detection canine and ATF Laboratory services to analyze fire debris and evidence. Early and continued collaboration with our local and federal partners ensured justice once again prevailed.”
According to court documents, Sexton pleaded guilty to intentionally setting fire to the church in the evening hours of Jan. 19, 2023. Sexton admitted that he set this fire by throwing two Molotov cocktails at the church — one at the front door and the other at the basement. Sexton further admitted that he was motivated to set this fire due to the religious character of the church and that he intended to destroy the church.
The FBI, ATF and the Loveland Police and Fire Departments conducted the investigation.
Assistant U.S. Attorney Bryan D. Fields for the District of Colorado and Trial Attorney Maura White of the Justice Department’s Civil Rights Division prosecuted the case.
Chatham Man Sentenced for Insider Trading SchemeRead the Press Release
BOSTON – A Chatham was sentenced today in federal court in Boston for trading on inside information about a Massachusetts semiconductor company’s planned acquisition of a California company.
Gregory Manning, 61, formerly of Needham, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years of supervised release, with the first three months to be served in home detention. Manning was also ordered to pay a fine of $20,000. In October 2023, Manning pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. Manning was charged in January 2020 along with co-defendants John Younis and David Forte.
In or around June 2016, Forte ¬obtained material non-public information from his brother who was a senior executive at Analog Devices, Inc. (Analog), a Norwood-based semiconductor company, about Analog’s planned acquisition of Linear Technology Corp. (Linear), a semiconductor company based in Milpitas, Calif. Forte passed the information to Manning, who purchased 3,000 shares of Linear stock in the week leading up to the public announcement of the acquisition on July 26, 2016. After the deal was announced, Manning sold all the Linear shares he had purchased for a profit and later paid Forte a kickback in appreciation for Forte’s stock tip.
In June 2022, Younis was sentenced to two years of probation, with the first month served on home detention, after pleading guilty to trading in Linear securities based on the material non-public information Forte provided to him. In July 2023, Forte was convicted by a federal jury of one count of conspiracy to commit securities fraud and one count of securities fraud. In November 2023, he was sentenced to one year of supervised release with the first six months to be served on home detention.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Securities & Exchange Commission provided valuable assistance. Assistant U.S. Attorneys David M. Holcomb and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
California Man Pleads Guilty to Interfering with Flight Crew, Forcing Plane to be Diverted to KCIRead the Press Release
KANSAS CITY, Mo. – A California man pleaded guilty in federal court today after he was subdued by several passengers and flight attendants when he tried to open the exit door on an American Airlines flight en route to Washington, D.C., forcing the plane to land at Kansas City International Airport in Kansas City, Missouri.
Juan Remberto Rivas, 52, pleaded guilty before U.S. District Judge Roseann A. Ketchmark to one count of interfering with flight crew members and flight attendants.
Rivas was a passenger aboard American Airlines flight 1775 traveling nonstop from Los Angeles, Calif., to Washington, D.C., which was diverted to Kansas City International Airport in Kansas City, Mo., on Feb. 13, 2022.
By pleading guilty today, Rivas admitted that he created a disturbance which knowingly intimidated a flight attendant of the aircraft. Rivas went to the front of the plane and was arguing with the flight attendant. Rivas grabbed some plastic silverware and placed the plastic silverware in his shirt sleeve to appear to create a shank. Rivas grabbed a small champagne bottle by the neck and attempted to break the bottle on the counter. Rivas then attempted to open an exit door by lifting the handle.
Another flight attendant grabbed a coffee pot and hit Rivas with it. Rivas was then restrained for the remainder of the flight.
Under federal statutes, Rivas is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
Burlington County Man Charged with Possessing Explosive DevicesRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man was charged with possessing four destructive devices, U.S. Attorney Philip R. Sellinger announced today.
Jeremy Giliberti, 52, of Mount Laurel, New Jersey, is charged by complaint with one count of possessing destructive devices. He is scheduled to appear this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.
According to documents filed in this case and statements made in court:
On July 26, 2023, Hamilton Township Police Division officers conducted a motor vehicle stop of Giliberti. During a subsequent search of Giliberti’s vehicle, one of the officers found a duffle bag on the front passenger-side floorboard which contained four pipe bombs. Two of the devices were encased in 5-inch steel pipes and two of the devices were encased in cardboard tubing wrapped in duct tape. All four of the devices contained numerous metal pellets, an explosive mixture, and a pyrotechnic fuse.
The possession of a destructive device charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller; members of the Hamilton Township Police Division, under the direction of Chief Kenneth R. DeBoskey; members of the New Jersey State Police Bomb Unit, under the direction of Col. Patrick J. Callahan; and members of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to this arrest.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office in Trenton.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
giliberti.complaint.pdfBronx Man Charged with Production, Distribution, and Possession of Child PornographyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a Complaint charging DERICK COLON with producing, distributing, and possessing child pornography. COLON was presented Monday, January 22 before Chief U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Damian Williams said: “Derick Colon’s alleged conduct is horrific and deeply disturbing. Colon was entrusted to care for his daughter, but instead, as alleged, Colon violated that trust by filming himself performing heinous sex acts against her and other minors and distributing those videos through social media. Investigating and prosecuting those who sexually exploit children is of paramount importance to this Office, and we will work around the clock to protect the children in our community.”
FBI Assistant Director in Charge James Smith said: “The alleged actions of Derick Colon are depraved and beyond disturbing. Parents should nurture and protect a child, not subject them to extreme sexual exploitation and abuse. Colon now faces severe punishment for his alleged inexcusable crimes. The FBI’s Child Exploitation and Human Trafficking Task Force will continue to do whatever it takes to protect the most vulnerable members of society—our children—from predators, no matter who they are.”
According to the allegations in the Complaint:[1]
On or about January 19, 2024, COLON shared videos with another individual on a social networking application that allows users to exchange private messages and send photos and videos to others within the network. The videos depict COLON engaged in sexually explicit conduct with a minor who appears to be approximately six to eight years old (“Victim-1”).
On or about January 21, 2024, law enforcement officials executed a judicially authorized search warrant at a known residence of COLON. Upon entering the residence, law enforcement officials observed COLON sitting on the couch beside a girl who appeared to be approximately four years old (“Victim-2”). COLON stated that Victim-2 was his daughter.
Law enforcement officials seized COLON’s cellphone pursuant to the search warrant and discovered approximately 12 additional videos of COLON sexually abusing a minor who appears to be Victim-2. Following his arrest and after waiving his Miranda rights, COLON stated, in sum and substance, that he “messed up” and that he had sexually abused Victim-2.
* * *
COLON, 24, of the Bronx, New York, is charged with one count of production of child pornography, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison, and one count of distribution of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison. COLON is further charged with possession of child pornography, which carries a maximum sentence of 20 years in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the efforts of the FBI and the New York City Police Department (“NYPD”) for their outstanding work on this matter, particularly the FBI-NYPD New York Child Exploitation and Human Trafficking Task Force. Mr. Williams also thanked the Manhattan District Attorney’s Office for their assistance. He added that the investigation is ongoing.
Any individuals who believe they have information that may be relevant to this investigation should contact the FBI at 1-800-CALL-FBI or tips.fbi.gov.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney William K. Stone is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bridgeport Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JEROND ROGERS, JR., 30, of Bridgeport, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to unlawful possession of a firearm by a felon.
According to court documents and statements made in court, on October 25, 2022, Rogers possessed a loaded Glock 26 semi-automatic pistol.
Rogers’ criminal history includes state felony convictions for sale of narcotics, criminal possession of a weapon, and possession of a weapon in a motor vehicle. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Rogers has been detained since his federal arrest on March 20, 2023.
Judge Underhill scheduled sentencing for April 16, at which time Rogers faces a maximum term of imprisonment of 15 years.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Ross Weingarten and Karen L. Peck through Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bergen County Man Admits Possession with Intent to Distribute HeroinRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted possession of heroin with intent to distribute, U.S. Attorney Philip R. Sellinger announced.
Dawan A. Brown, aka “DB,” 37, of Cliffside Park, New Jersey, pleaded guilty before Judge Brian R. Martinotti in Newark federal court to an information charging him with one count of possession with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin.
According to documents filed in this case and statements made in court:
Brown admitted that on June 14, 2021, he possessed with intent to distribute a controlled substance containing heroin in Harrison, New Jersey. At the time of his arrest, law enforcement officers seized suspected drug proceeds and pieces of jewelry from Brown’s residence. As part of the plea agreement, Brown agreed to forfeit $436,616 – the proceeds from the narcotics trafficking.
The narcotics offense carries a minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a fine of $5 million. Sentencing is scheduled for June 12, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; Harrison Police Department, under the direction of Chief Ronald Cuney; and Cliffside Park Police Department, under the direction of Chief Marc Marano, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Robert L. Frazer of the Organized Crime/Gangs Unit and Assistant U.S. Attorney Dong Joo Lee of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit, in Newark.
brown.information.pdfBennington Man Charged with Possession of a BombRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Tyler Hayes, 41, of Bennington, Vermont, has been indicted for possession of a bomb that was not registered to him in the National Firearms Registration and Transfer Record. A federal grand jury in Burlington issued the indictment, and Hayes had his initial appearance yesterday in Burlington. This afternoon, United States Magistrate Judge Doyle ordered Hayes detained pending trial.
According to court records, Hayes made the bomb himself and told acquaintances about the destruction it would cause if detonated. Hayes left the bomb in his former residence when he moved out in connection with eviction proceedings. Hayes took no apparent precautions to make sure the bomb did not fall into the wrong hands or detonate inadvertently.
The United States Attorney emphasizes that the charge in the indictment is an accusation only and that each defendant is presumed innocent unless and until proven guilty. If convicted, Hayes faces a maximum penalty of 10 years in prison and fines of up to $10,000. Any ultimate sentence will be determined by the Court and advised by the Federal Sentencing Guidelines and the United States Code.
U.S. Attorney Nikolas P. Kerest commended the investigatory and collaborative efforts of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Homeland Security Investigations (HSI); the Bennington Police Department; and the Vermont State Police Bomb Squad.
The United States is represented in this matter by Assistant U.S. Attorney Corinne M. Smith. Hayes is represented by James Valente, Esq. and Assistant Federal Defender Barclay Johnson.
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 https://www.justice.gov/psn.
Approximately 40 Individuals Arrested in Multi-State Drug Trafficking TakedownRead the Press Release
Jackson, Miss. – Approximately 40 individuals were arrested today pursuant to 10 federal indictments filed in the Southern District of Mississippi charging defendants from Lauderdale, Newton, Neshoba, Scott, and Jasper counties in Mississippi, as well as Mexico, California, Texas, and Alabama. The charges stem from a four-year federal investigation of multiple drug trafficking operations distributing methamphetamine, cocaine, and other illegal drugs.
The indictments charge various drug trafficking crimes, including, but not limited, to possession with intent to distribute controlled substances and conspiracy to do so. Several defendants face mandatory minimum sentences because of the significant quantities of illegal drugs involved, and some defendants face enhanced penalties for crimes involving methamphetamine where minors were present, or for drug trafficking near schools. Additionally, some defendants have been charged with firearms-related crimes or using a telephone to threaten injury or death to another by means of an explosive device.
The following defendants were arrested today:
Tavia Armstrong, 32, of Meridian; Alyssia Boose, 32, of Newton; Billy Boose, 46, of Newton; Fred Campbell, 49, of Meridian; Jacoby Clayton, 29, of Meridian; Mario Cole, 37, of Meridian; Bobby Coleman, 35, of Union; George Collier, 46, of Pelahatchie; Christopher Evans, 47, of Union; Tabbgrinn Graham, 33, of Decatur; James Green, 52, of Meridian; Cassady Harris, 37, of Union; Yvette Herring, 45, of Riverside, CA; Dakota Holt, 32, of Meridian; Edward House, 46, of Meridian; Jeffery Jennings, 40, of Meridian; James Johnson, 50, of Louin; Cedric Jones, 52, of Houston, TX; Lajason Jones, 43, of Decatur; Markee Jones, 44, of Meridian; Nathan Kendricks, 46, of Meridian; Kevin King, 41, of Meridian; Todrian Laphand, 30, of Meridian; John Little, 31, of Meridian; Nicholas Massey, 35, of Decatur; Kenneth McCurdy, 43, of Forest; Jeffery Murrell, 54, of Newton; Johnny Patton, 42, of Quitman; Darius Powell, 35, of Meridian; Marcus Powell, 38, of Meridian; Raykeitdgrith Ricks, 41, of Lawrence; Znthony Ruffin, 38, of Toomsuba; Dustin Jamal Russell, 33, of Newton; Steven Savell, 48, of Union; Carlos Seals, 42, of Meridian; Brandon Slaughter, 31, Meridian; Jacorie Smith, 27, of Meridian; Curtis Spivey, 39 of Philadelphia; Billy Wilson, 52, of Cuba, AL; and Crisseta Woods, 46, of Union.
Additional defendants charged in the indictments have not yet been arrested.
Initial court appearances are scheduled to begin on Wednesday, January 24, 2024, at 9:00 a.m. before U.S. Magistrate Judges F. Keith Ball and LaKeysha Greer Isaac in U.S. District Court in Jackson.
The announcement was made by U.S. Attorney Todd W. Gee of the Southern District of Mississippi, Acting Special Agent in Charge Eric DeLaune of Homeland Security Investigations, Acting Special Agent in Charge Steve Hofer of the Drug Enforcement Administration, Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and U.S. Marshal Mark Shepherd.
The cases are being investigated by Homeland Security Investigations, the Mississippi Bureau of Narcotics, the East Mississippi Drug Task Force and Lauderdale County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the U.S. Marshals Service, the Alabama 17th Judicial Circuit Drug Task Force, the Newton County Sheriff’s Department, and the Scott County Sheriff’s Department.
The following agencies also assisted in the investigation: U.S. Postal Inspection Service, Mississippi Highway Patrol, Mississippi Bureau of Investigations, Neshoba County Sheriff’s Office, Philadelphia Police Department, Decatur Police Department, Union Police Department, Mississippi Attorney General’s Office, Mississippi Commercial Truck Enforcement Division, Mississippi Department of Wildlife, Fisheries, and Parks, Mississippi Alcoholic Beverage Control, and the Mississippi Department of Corrections.
Assistant U.S. Attorney Carla J. Clark is prosecuting the cases. The Office of Enforcement Operations in the Department of Justice’s Criminal Division also provided assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Monday 22 January 2024
Wilmington Blood Gang Member Receives 84 Month Sentence for Possessing a “Ghost Gun” and Ammunition After Fleeing from PoliceRead the Press Release
WILMINGTON, N.C. – A Wilmington man was sentenced to 84 months in federal prison for possession of ammunition by a convicted felon. On September 6, 2023, Trevon Keoni Di’Jae Brown, age 24, pled guilty to the charge.
According to court documents and other information presented in court, on November 18, 2022, the Wilmington Police Department attempted to initiate a traffic stop on a vehicle operated by Brown. Brown attempted to evade the police by dangerously weaving through traffic, but eventually hit a parked car. The defendant then fled on foot but was quickly apprehended. Officers retraced the defendant’s path of escape and located a loaded 9mm privately made firearm (“ghost gun”) with a large capacity magazine with 25 rounds in it in the backyard of a residence. Ballistic testing revealed that the firearm was used in a shooting in Wilmington on June 12, 2022.
“This sentence is yet another example of how dangerous felons increasingly turn to untraceable ghost guns for their crimes,” said U.S. Attorney Michael Easley. “These weapons in the wrong hands pose a significant threat to our communities and we will continue to fully enforce the law against those who break it.”
Privately made firearms or “ghost guns” are firearms that are made by a person other than a licensed manufacturer and do not have a serial number placed on the firearm by a license manufacturer at the time the firearm was produced.
Brown has multiple prior criminal convictions including, but not limited to, carrying a concealed weapon, resisting a public officer, carrying a concealed gun, and possession with intent to manufacture, sell, or deliver cocaine. Brown was also validated as a member of the United Blood Nation by the North Carolina Department of Adult Correction and by the Wilmington Police Department.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the New Hanover County Sheriff’s Office, the Wilmington Police Department’s Gun Crime Task Force, and the Wilmington Police Department investigated the case and Special Assistant United States Attorney William Van Trigt prosecuted the case. Van Trigt is a prosecutor with the New Hanover County District Attorney’s Office assigned to the United States Attorney’s Office to prosecute federal violent crimes and other criminal matters. This has been made possible by a grant funded by New Hanover County.
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is a collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:23-cr-00050BO-001.
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Virginia Man and Woman Convicted of Forced Labor at Gas Station and Convenience Store for Multiple YearsRead the Press Release
RICHMOND, Va. – Following a two-week trial, a federal jury on Friday convicted a Richmond-area couple with conspiracy to commit forced labor, forced labor, harboring for financial gain, and document servitude in connection with their operation of a gas station and convenience store in North Chesterfield.
The evidence presented at trial demonstrated that, between March 2018 and May 2021, Harmanpreet Singh, 30, and Kulbir Kaur, 43, forced the victim, Singh’s cousin, to provide labor and services at Singh’s store, including working as the cashier, preparing food, cleaning, and managing store records. Singh and Kaur used various coercive means, including confiscating the victim’s immigration documents and subjecting the victim to physical abuse, threats of force and other serious harm and, at times, degrading living conditions, to compel him to work extensive hours for minimal pay.
“These defendants engaged in an egregious bait-and-switch, luring the victim with false promises of an education in the United States and instead subjecting him to grueling hours, degrading living conditions, and a litany of mental and physical abuse,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Forced labor and human trafficking are abhorrent crimes that have no place in our society, and I am grateful to our team of prosecutors, agents, and support staff for ensuring that justice was done in this case.”
In 2018, the defendants enticed the victim, then a minor, to travel to the United States with false promises of helping enroll him in school. After arriving in the United States, the defendants took his immigration documents and immediately put him to work. They also left the victim at the store to sleep in a back office for days at a time on multiple occasions, limited his access to food, refused to provide medical care or education, used surveillance equipment to monitor the victim both at the store and in their home, refused his requests to return to India, and made him overstay his visa. The evidence further showed that Singh pulled the victim’s hair, slapped and kicked him when he requested his immigration documents back and tried to leave, and on three different occasions threatened the victim with a revolver for trying to take a day off and for trying to leave.
“The defendants exploited the victim’s trust and his desire to attend school in the United States, and then inflicted physical and mental abuse against him, all so they could keep him working for their profit,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Human trafficking is a disgraceful and unacceptable crime, and this verdict should send the very clear message that the Justice Department will investigate and vigorously prosecute these cases to hold human traffickers accountable and bring justice to their victims.”
“These convictions demonstrate the FBI’s commitment to seeking justice for victims of human trafficking and should also serve as a reminder to those who seek to engage in this illegal activity,” said Special Agent in Charge Stanley M. Meador of the FBI Richmond Field Office. “We will continue working with our local, state and federal partners to aggressively identify, investigate and bring those responsible to justice.”
A sentencing hearing is scheduled for May 8. Singh and Kaur face a maximum penalty of 20 years in prison, up to five years of supervised release, a fine of up to $250,000, and mandatory restitution for the forced labor charge. A federal district court judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; and Special Agent in Charge Stanley M. Meador of the FBI’s Richmond Field Office made the announcement.
Assistant U.S. Attorneys Avi Panth and Peter S. Duffey for the Eastern District of Virginia and Trial Attorney Matthew Thiman of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org/. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-92.
Virginia Man and Woman Convicted of Forced Labor at Gas Station and Convenience Store for Multiple YearsRead the Press Release
Following a two-week trial, a federal jury on Friday in the Eastern District of Virginia convicted a Richmond-area couple of conspiracy to commit forced labor, forced labor, harboring for financial gain and document servitude in connection with their operation of a gas station and convenience store in North Chesterfield, Virginia.
The evidence presented at trial demonstrated that, between March 2018 and May 2021, Harmanpreet Singh, 30, and Kulbir Kaur, 43, forced the victim, Singh’s cousin, to provide labor and services at Singh’s store, including working as the cashier, preparing food, cleaning and managing store records. Singh and Kaur used various coercive means, including confiscating the victim’s immigration documents and subjecting the victim to physical abuse, threats of force and other serious harm and, at times, degrading living conditions to compel him to work extensive hours for minimal pay.
“The defendants exploited the victim’s trust and his desire to attend school in the United States, and then inflicted physical and mental abuse against him, all so they could keep him working for their profit,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Human trafficking is a disgraceful and unacceptable crime, and this verdict should send the very clear message that the Justice Department will investigate and vigorously prosecute these cases to hold human traffickers accountable and bring justice to their victims.”
“These defendants engaged in an egregious bait-and-switch, luring the victim with false promises of an education in the United States and instead subjecting him to grueling hours, degrading living conditions and a litany of mental and physical abuse,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Forced labor and human trafficking are abhorrent crimes that have no place in our society, and I am grateful to our team of prosecutors, agents and support staff for ensuring that justice was done in this case.”
“Today’s convictions demonstrate the FBI’s commitment to seeking justice for victims of human trafficking and should also serve as a reminder to those who seek to engage in this illegal activity,” said Special Agent in Charge Stanley M. Meador of the FBI Richmond Field Office. “We will continue working with our local, state and federal partners to aggressively identify, investigate and bring those responsible to justice.”
In 2018, the defendants enticed the victim, then a minor, to travel to the United States with false promises of helping enroll him in school. After arriving in the United States, the defendants took his immigration documents and immediately put him to work. They also left the victim at the store to sleep in a back office for days at a time on multiple occasions, limited his access to food, refused to provide medical care or education, used surveillance equipment to monitor the victim both at the store and in their home, refused his requests to return to India and made him overstay his visa. The evidence further showed that Singh pulled the victim’s hair, slapped and kicked him when he requested his immigration documents back and tried to leave, and on three different occasions threatened the victim with a revolver for trying to take a day off and for trying to leave.
A sentencing hearing is scheduled for May 8. Singh and Kaur face a maximum penalty of 20 years in prison, up to five years of supervised release, a fine of up to $250,000 and mandatory restitution for the forced labor charge. A federal district court judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.
The FBI Richmond Field Office investigated the case.
Assistant U.S. Attorneys Avi Panth and Peter S. Duffey for the Eastern District of Virginia and Trial Attorney Matthew Thiman of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
U.S. Attorney’s Office Collects over $4.5 Million in Restitution for Victims, Criminal Fines, and Other Penalties in Fiscal Year 2023Read the Press Release
BOISE – U.S. Attorney Josh Hurwit announced today that the office’s Financial Litigation Program, which is part of the Asset Recovery Division, collected over $3.5 million in criminal monetary penalties, which includes restitution, fines, and assessments, and in civil debts for the fiscal year that ended September 30, 2023. In some cases, the U.S. Attorney’s Office worked in conjunction with litigating components of the U.S. Department of Justice. Of the total collected, approximately $2 million were criminal restitution, fines, and/or assessments, and approximately $1.5 million were civil debts. In addition, the Asset Forfeiture Unit, the other part of the Asset Recovery Division, deposited to the Asset Forfeiture Fund approximately $1 million in proceeds and instruments of crime in criminal and civil forfeiture actions.
In fiscal year 2023, the U.S. Attorney’s Office, through the Financial Litigation Program, collected approximately $1.9 million in criminal restitution that was or will be distributed to victims of crime. Other criminal collections such as fines go into the Crime Victims Fund. From there, funds are distributed to the Idaho Crime Victims Compensation Program, the Idaho Council on Domestic Violence and Victim Assistance, and similar programs across the country. Money recovered from the illegal proceeds of criminal activity through forfeiture is returned to victims, used to offset the costs of operating federal prisons, and shared with local, state, and federal law enforcement agencies to help fight crime. Other recoveries go back to agency creditors.
“Our Asset Recovery Division works tirelessly to recover money for victims and recouping the ill-gotten gains of those convicted of federal crimes in Idaho,” said U.S. Attorney Hurwit. “As taxpayers, we should all be proud of the outstanding work these dedicated public servants have done over the past year.”
As for civil debts and penalties, the Financial Litigation Program collects civil penalties for violations of regulations involving, among other things, controlled substances, environmental protection, damage to federal property, and procurement fraud. It also collects civil debts for defaulted loans from federal taxpayer-funded programs.
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U.S. Attorney Recognizes Human Trafficking Prevention MonthRead the Press Release
MADISON, WIS. - January is National Human Trafficking Prevention Month. To commemorate the month and continue to raise awareness about this important issue, U.S. Attorney Timothy M. O’Shea reaffirmed his office’s commitment to fight against human trafficking by bringing traffickers to justice, assisting trafficked victims, and enhancing public awareness through community outreach.
Human trafficking is a crime involving the exploitation of a person for labor, services, or commercial sex, through the use of force, fraud, or coercion that is physical and/or psychological. The exploitation of a minor for commercial sex is human trafficking regardless of whether any form of force, fraud, or coercion is used by the trafficker.
“Human trafficking is a despicable crime that is happening, unfortunately, right here in Wisconsin,” said U.S. Attorney O’Shea. “Our federal prosecutions, described below, show our commitment to combat human trafficking and bring traffickers to justice. But there’s more work to be done. That’s why today, and every day, we are committed to working with our law enforcement partners, victim service providers, government entities, and the community to combine and strengthen our anti-trafficking efforts.”
U.S. Attorney O’Shea encouraged victims to come forward. “If you are a person forced into prostitution or human trafficking, help is available. There are advocates committed to help you find support and resources. There are local, state, and federal law enforcement officers dedicated to investigating human trafficking. There are prosecutors who will work with law enforcement to hold traffickers accountable.”
U.S. Attorney O’Shea further encouraged anyone who knows about human trafficking to come forward, “Human trafficking is especially pervasive because people don’t want to get involved or are too afraid to come forward. If you know or suspect that someone is being trafficked, please report it using the contact numbers below. You can save that person’s life and the lives of many others. Most often, you can remain anonymous.”
Our Office’s Human Trafficking Prosecutions
The U.S. Attorney’s Office’s ongoing anti-trafficking efforts have resulted in many prosecutions that have led to convictions and prison sentences. In 2023, our prosecutions resulted in a notable sentencing and guilty plea:
United States v. Adrian Edwards. On November 9, 2023, Edwards, 40, Madison, Wisconsin, was sentenced to 11 years in federal prison for sex trafficking a minor. Edwards encountered the 16-year-old victim in Utah in January 2021, when the two were at a mutual friend’s house. The victim confided to the defendant that she had a difficult home life and he offered to help her with a place to stay if she needed it. A few days later, the victim called Edwards to take him up on his offer. He bought her a train ticket to Iowa, where he picked her up and brought her to Wisconsin. When she arrived in Wisconsin, he told her she was expected to perform sex acts for money. He immediately took pictures of her and posted ads on websites offering various sexual services in exchange for money. Edwards set the prices, arranged the meetings, arranged for hotels, and kept the bulk of the money gained from the trafficking activity. Edwards was indicted in July 2021, and a federal arrest warrant was issued. He was ultimately arrested in January 2022 in Arizona.
United States v. Austin Koeckeritz. On November 23, 2023, Koeckeritz, 40, River Falls, Wisconsin, pled guilty to one count of sex trafficking by force, fraud or coercion, and one count of sex trafficking of a minor. According to court documents, Koeckeritz used force, threats of force, fraud, and coercion to compel one adult victim into engaging in commercial sex acts in the River Falls area between August 2020 and August 2022. Koeckeritz also caused a minor victim to engage in commercial sex acts in between October 2021 and January 2022. Sentencing is scheduled for April 11, 2024, at 01:00 pm before Chief Judge James D. Peterson.
How to Report Human Trafficking
If you believe you or someone else are the victim of human trafficking or have information about a potential trafficking situation, call the National Human Trafficking Hotline at 1-888-373-7888.
Specialists are available to answer calls 24 hours a day, seven days a week. You can also send a text to 233733 or submit a tip online.
U.S. Attorney Announces Human Trafficking Task Force Partnership in Southeastern North CarolinaRead the Press Release
RALEIGH, N.C. – U.S. Attorney Michael Easley announced efforts to combat human trafficking, including expansion of a dedicated task force in Southeastern North Carolina, including Wilmington and Jacksonville. This task force partnership follows the launch of a similar effort in the Raleigh-Cary area last year. As part of the annual observation of January as Human Trafficking Awareness Month, Easley also highlighted several successful human trafficking prosecutions led by his office. In 2023, 12 defendants received sentences averaging 98 months, with one defendant receiving a sentence of more than 32 years in prison. Numerous other individuals are facing charges that have not yet resolved.
“Our unique task force model is dismantling networks in North Carolina. Today we are expanding upon the work already underway in Southeastern North Carolina, bringing together our law enforcement and community partners to rescue victims and prosecute those who are exploiting vulnerable individuals for labor, services, or commercial sex,” said U.S. Attorney Michael Easley. “I commend the work of the FBI and our local partners to lay the groundwork for this expanded partnership.”
The dedicated human trafficking task force for Southeastern North Carolina will meet regularly to share intelligence and investigative leads, receive specialized training, develop investigative tools and expertise for law enforcement agencies, and to foster community partnerships to provide the services needed to assist trafficking victims. The task force includes law enforcement partners from the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), N.C. State Bureau of Investigation (NCSBI), Navy Criminal Investigative Service (NCIS), New Hanover County Sheriff’s Office, Onslow County Sheriff’s Office, Carteret County Sheriff’s Office, Jacksonville Police Department, and the Whiteville Police Department, as well as federal and state prosecutors from the United States Attorney’s Office and the North Carolina District Attorney’s Offices for the 5th and 6th Prosecutorial Districts.
"For years the FBI and our local law enforcement partners have been working tirelessly to combat human trafficking along North Carolina's coast," said Robert M. DeWitt, the Special Agent in Charge of the FBI. "We are deeply appreciative to the U.S. Attorney's Office Eastern District for dedicating additional resources to join our mission to hold those accountable who enslave others for their own profit."
“Homeland Security Investigations (HSI) is proud to be part of this all-important human trafficking task force working in conjunction with the United States Attorney’s Office and our local, state, and federal partners,” said Kyle D. Burns, Deputy Special Agent in Charge of HSI Charlotte, which covers both North and South Carolina. “Human trafficking is a heinous crime that affects the most vulnerable members of society and by dedicating significant resources to this endeavor, we’re able to work jointly to dismantle these criminal organizations that seek to exploit these victims for their own financial gain.”
“The Sheriff's Office has had a zero-tolerance approach to human trafficking,” said New Hanover Sheriff Ed McMahon. “We will continue to dedicate resources and work with our partners to eradicate this evil crime.”
“The criminals and criminal organizations involved in human trafficking deserve the full attention of prosecutors and law enforcement. Justice for them should be swift and resolute. The North Carolina State Bureau of Investigation is proud to join our partners and we applaud this effort to bring justice to those who so rightly deserve it,” said North Carolina State Bureau of Investigation Director Robert Schurmeier.
Prosecution of Human Traffickers
Finally, the office is highlighting several human trafficking prosecutions from 2023 that have helped to put traffickers and members of their organizations behind bars. Notable cases from 2023 include the following:
USA v. Timothy Bavaro (No. 7:20-CR-115-M)
On March 14, 2023, Timothy Bavaro was sentenced to 180 months in prison and ordered to pay nearly $90,000 in restitution to multiple victims for his role as the leader and organizer of a prostitution enterprise that he operated from at least 2015 to 2019 across various states (including New York, South Carolina, and North Carolina), victimizing at least seven women. Information from the victims and a cooperating witness all provided information regarding Bavaro’s prostitution business, including Bavaro’s physical abuse of victims and the fear that many victims cited as the reason they continued engaging in commercial sex for his financial gain. Victims reported they were required to give Bavaro anywhere from 50-100% of their earnings while still having to pay their expenses, leaving them with little to nothing. Bavaro appealed, but on December 21, 2023, the Fourth Circuit Court of Appeals affirmed the sentence imposed by the district court and dismissed the remainder of Bavaro’s appeal.
USA v. Yomere Juan Busbee (No. 5:20-CR-393-M)
On March 24, 2023, Busbee – a violent pimp and drug dealer from Fayetteville – was sentenced to 390 months in prison. In September 2022, a federal jury in Wilmington found Busbee guilty on six counts related to the kidnapping of four victims, including a minor, as well as several drug and gun offenses that came to light during an investigation into the defendant’s sex trafficking activities. Two co-defendants pled guilty and received sentences of 108 and 90 months, respectively.
USA v. Roderick Wall (No. 7:22-CR-90-D)
On May 25, 2023, the court sentenced Roderick Wall to 78 months in prison for his role in a drug conspiracy, during which he facilitated commercial sex out of his house. According to court documents and information presented in court, Wall posted online advertisements for sexual services and allowed females to engage in commercial sex out of his home, often while supplying the females with drugs. Wall’s wife and two minor children lived in the home with him and were present during some of the drug transactions and during a search warrant on August 18, 2021. Additionally, Wall sold fentanyl to a pregnant woman, and home surveillance footage showed another pregnant female injecting fentanyl supplied by Wall.
USA v. Kevin Harold Rudolph (No. 5:19-CR-336-FL)
Marcus Antwan Gambrell and co-defendant Kevin Rudolph were charged with sex trafficking of a 14-year-old minor and using the internet to promote prostitution. In addition, Gambrell faced charges for manufacturing child pornography, and Rudolph for possession of a firearm by a felon. Rudolph pled guilty to sex trafficking of a minor and aiding and abetting and was sentenced to 180 months in prison on April 5, 2023.
USA v. Ok Hwa Lee, et al. (No. 7:21-CR-00079)
From January to April 2023, the court sentenced five defendants who had been indicted in connection with an investigation into illicit massage parlors where sexual services were being provided. The indictment charged them with conspiracy, bribery, and operating an illegal prostitution enterprise in interstate commerce. All five defendants pled guilty in 2022, and all five were sentenced in 2023 to 10 years collectively. The leader of the organization, Ok Hwa Lee, 55, was sentenced to 34 months in prison. Shanyu Song, 50, and Xuejin Bai, 51, were sentenced to 26 and 12 months and one day, respectively. Additionally, Lee was ordered to forfeit $151,000; Song $146,000; and Bai $55,000. Ming Ji Cao was sentenced to 18 months, and a $1000 fine, and Og Bun Park was sentenced to 15 months and a $750 fine.
USA v. Brittney McCoy, et al. (No. 7:23-CR-22-M-RJ)
In March 2023, Brittney Chantel McCoy was indicted with sex trafficking of a minor and operating an illegal prostitution enterprise in interstate commerce. McCoy pled guilty to sex trafficking of a minor on August 9, 2023, and is set for sentencing in January 2024.
Melody Faye Nobles was initially charged with McCoy but was also subsequently indicted in a superseding indictment in August 2023, charging sex trafficking of a minor and operating an illegal prostitution enterprise in interstate commerce. Nobles allowed her co-defendant, McCoy, and a then 16-year-old minor victim to engage in commercial sex in her home in Wilmington, NC, in exchange for a portion of the money that McCoy and the minor earned. Later that same month, Nobles allowed the minor to travel to Jacksonville, NC, to engage in commercial sex, again in exchange for the proceeds.
Nobles pled guilty to operating an illegal prostitution enterprise in interstate commerce in September 2023 and was sentenced on December 12, 2023, to 48 months imprisonment and ordered to register as a sex offender.
USA v. Brieania Shidae Pinnock, et al. (No. 5:23-CR-210-FL-KS)
In June 2023, the government indicted Brieania Shidae Pinnock, charging her with eight human trafficking and child pornography offenses, including conspiracy, sex trafficking of a minor, production of child pornography, operating an illegal prostitution enterprise in interstate commerce, and distribution of child pornography. Co-defendant Trinity Sky Alston was charged with four counts, including sex trafficking of a minor, child pornography. Both defendants are presumed innocent until proven guilty.
USA v. Christopher Todd Evans (No. 7:23-CR-82-M-RJ)
In July 2023, the government indicted a long-term human trafficking investigation, charging two human trafficking-related counts, including promotion or facilitation of prostitution and operating an illegal prostitution enterprise in interstate commerce. The defendant is presumed innocent until proven guilty.
USA v. Deangelo Taborn, et al. (No. 7:23-CR-92-D-BM)
In August 2023, the government indicted DeAngelo Rarhem Taborn and co-defendant on Imani Jovianna Franco on multiple human trafficking and firearm offenses, including conspiracy, sex trafficking, interstate travel for prostitution by coercion or persuasion, interstate travel for prostitution (Mann Act), operating an illegal prostitution enterprise in interstate commerce and felon in possession of a firearm. Taborn faces eight charges and Franco faces seven. Both defendants are presumed innocent until proven guilty.
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If you or anyone you know needs help or has information to provide regarding a potential human trafficking situation, please contact law enforcement by calling 911 if the situation appears unsafe, or contact the National Human Trafficking Hotline:
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- https://humantraffickinghotline.org/
- 1-888-373-7888
- *Text 233733
- Email: [email protected]
A copy of this press release is located on our website.
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Two More Plead Guilty to Roles in Huntington Methamphetamine Trafficking OrganizationRead the Press Release
HUNTINGTON, W.Va. – Kayla Dawn Powell, 37, of Hurricane, and Donald James Duty, 52, of Huntington, pleaded guilty today to distribution of fentanyl. Powell and Duty admitted to their roles in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Huntington area.
According to court documents and statements made in court, Powell admitted to participating in the distribution of methamphetamine and fentanyl with others from at least June 2023 through November 2023. During that period, Powell received quantities of methamphetamine and fentanyl from a source or from others at the source’s direction in the Huntington area that she distributed to various customers in the Southern District of West Virginia.
On June 6, 2023, Powell sold approximately 3.6 grams of fentanyl to a confidential informant for $250 in a vehicle parked at a business on MacCorkle Avenue in St. Albans. Powell admitted to the transaction and to arranging it with the confidential informant beforehand.
On November 15, 2023, law enforcement officers executed a search warrant at Duty’s Jackson Avenue residence in Huntington and seized 19 firearms, approximately 73 grams of suspected fentanyl and approximately 108 grams of suspected methamphetamine. Duty admitted that he intended to distribute the seized fentanyl and methamphetamine.
Powell is scheduled to be sentenced on May 28, 2024, and Duty is scheduled to be sentenced on May 20, 2024. Each faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
Powell and Duty are among 27 individuals indicted in a 53-count indictment that charges the defendants with distributing methamphetamine and fentanyl transported from Detroit, Michigan, in Huntington and other locations within the Southern District of West Virginia. Co-defendant Denzil Roger Grant II, 50, of Hurricane, pleaded guilty to possession with intent to distribute a quantity of methamphetamine on January 17, 2024, and awaits sentencing. The indictment against the other defendants remains pending. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff’s Department, the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspection Service. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
United States District Judge Robert C. Chambers presided over the hearings. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor are prosecuting the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-180.
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Two Defendants Charged with Obstruction of Justice in Connection with Sentencing ProceedingsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Erin Keegan, the Acting Special Agent in Charge of the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”); and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a Complaint charging LEO HERNANDEZ with obstruction of justice in connection with his October 2022 sentencing proceeding in a federal narcotics case. HERNANDEZ will be presented today before the Honorable Sarah Netburn.
Mr. Williams and Christopher Hileman, the Special Agent in Charge of the U.S. Department of State, Office of Inspector General (“State-OIG”), also announced the unsealing of an indictment charging OBIOMA IWOBI with obstruction of justice in connection with his March 2023 sentencing proceeding in a federal fraud case. IWOBI’s case has been assigned to the Honorable Naomi Reice Buchwald.
U.S. Attorney Damian Williams said: “Leo Hernandez and Obioma Iwobi allegedly provided false information to federal judges in improper attempts to obtain leniency at sentencing. The obstruction of justice charges announced today should send a clear message that this Office will not tolerate attempts by criminal defendants to manipulate the court system.”
HSI Acting Special Agent in Charge Erin Keegan said: “As alleged, Leo Hernandez has shown once again he is neither reformed nor remorseful for the crimes of which he is accused. I commend HSI New York’s Border Enforcement Security Task Force and our law enforcement partners for their continued emphasis on securing justice.”
State-OIG Special Agent in Charge Christopher Hileman said: “Our office commends and appreciates the vigilance and efforts of the United States Attorney’s Office for the Southern District of New York in addressing the alleged attempts by a subject to obtain leniency during his sentencing hearing through the submission of false attestations. This indictment shows that the U.S. criminal justice system will hold accountable those who seek to deceive and defraud it.”
According to the allegations in the Complaint charging HERNANDEZ and the Indictment charging IWOBI:[1]
HERNANDEZ was prosecuted for participating in a conspiracy to distribute narcotics in United States v. Leo Hernandez, No. 20 Cr. 79 (RMB). In advance of the sentencing proceeding in that case, HERNANDEZ obstructed the sentencing proceeding by, among other things, (i) falsely stating to the U.S. Probation Office for the Southern District of New York that he had an opioid addiction, which was then incorporated into HERNANDEZ’s presentence investigation report, and (ii) causing his attorney in that case to make false representations to the Court in connection with sentencing regarding HERNANDEZ’s purported addiction, including a claim that the addiction motivated the criminal conduct for which HERNANDEZ was prosecuted. However, in truth and in fact, HERNANDEZ had no such addiction and provided false information to the Court in an improper attempt to obtain leniency at sentencing.
IWOBI was prosecuted for participating in a fraud and identity theft scheme in United States v. Obioma Iwobi, No. 22 Cr. 652 (ER). In advance of the sentencing proceeding in that case, IWOBI caused false and fraudulent letters to be submitted, and caused false and misleading statements to be made, to the Court in an improper attempt to obtain leniency at sentencing.
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HERNANDEZ, 42, of Staten Island, New York, and IWOBI, 43, who is currently incarcerated in Seagoville, Texas, are each charged with one count of obstruction of justice, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of HSI, HSI New York’s Border Enforcement Security Task Force’s Trade Enforcement and Interdiction Group, the NYPD, and State-OIG.
The cases are being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Samuel P. Rothschild and Robert B. Sobelman are in charge of the HERNANDEZ prosecution. Assistant U.S. Attorney T. Josiah Pertz is in charge of the IWOBI prosecution.
The charges contained in the Complaint and Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the Indictment and the description of the Complaint and Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Business Owners Pleaded Guilty to Federal Program Theft in Relation to the Misappropriation of Operational Funds from the United States Department of Housing and Urban Development (HUD)Read the Press Release
SAN JUAN, Puerto Rico –Martin D. Cruz-Vázquez, President of FiveStar Pest Control Inc. (FiveStar), and Luis O. Agosto-Meléndez, President of CoolBreeze Air Conditioning, Inc. (CoolBreeze) pleaded guilty to the theft of federal program funds provided by the United States Department of Housing and Urban Development (HUD) for the administration of Public Housing Projects (PHPs) in Puerto Rico.
According to court documents, Martin D. Cruz-Vázquez utilized FiveStar to obtain fraudulent contracts with American Management and Administration Corporation (AMAC) and to submit fraudulent invoices for work that was not rendered. From 2014 to August 2022, Martin D. Cruz-Vázquez illegally obtained approximately $363,937 in HUD operational funds that were earmarked for the administration of PHPs.
Similarly, from 2014 to August 2019, Luis O. Agosto-Meléndez utilized CoolBreeze to obtain fraudulent contracts with AMAC causing the theft of approximately $73,199.46 in HUD operational funds.
Both schemes were carried out with the assistance of AMAC’s management, including president Walter Pierluisi-Isern, who were convicted in 2023 for related federal program theft in excess of $3.7 million. See https://www.justice.gov/usao-pr/pr/walter-pierluisi-isern-eduardo-pierluisi-isern-and-american-management-and.
“The U.S. Department of Justice will continue to prosecute those who attempt to defraud government programs,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “These plea agreements send a clear message to those who misuse government funds that they will be held accountable for their crimes.”
“The guilty pleas relating to theft of funds from a HUD program meant to benefit low-income families is a signal that repercussions await all those that would seek to illegally obtain taxpayer dollars through fraudulent schemes,” said HUD OIG Southeast Region Special Agent-in-Charge, Jerome Winkle. “HUD OIG remains committed to working with our prosecutorial and law enforcement partners to protect the integrity of HUD’s programs and ensure vulnerable people in our communities are provided critical resources upon which they can rely.”
The defendants Luis O. Agosto-Melendez and Martin D. Cruz-Vazquez are scheduled to be sentenced on April 12, 2024 and April 30, 2024, respectively, and face a maximum sentence of 10 years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The United States Department of Housing and Urban Development Office of Inspector General investigated this case with the assistance of the Federal Bureau of Investigation.
Assistant U.S. Attorney Marie Christine Amy is prosecuting the case.
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Tulsa Resident Sentenced for Aggravated Sexual Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that David Allen Martin, age 45, of Tulsa, Oklahoma, was sentenced to 360 months in prison for one count of Aggravated Sexual Abuse. Martin is also subject to a life term of supervised release and will be required to register as a sex offender.
The charges arose from investigations by the Federal Bureau of Investigation and the Muscogee (Creek) Nation Lighthorse Tribal Police.
On March 2, 2023, Martin pleaded guilty to Aggravated Sexual Abuse in Indian Country. According to court documents, Martin sexually abused a seven year old child. The crime occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation, 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. Martin 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.
In announcing the sentence, U.S. Attorney Christopher J. Wilson commended the work of the investigative team that brought the case, and of the attorneys who brought the prosecution, including Assistant U.S. Attorney Morgan Muzljakovich, together with the Assistant U.S. Attorneys who form the Special Victims Unit for the Eastern District of Oklahoma.
Three Waterbury Residents Charged with Trafficking Fentanyl PillsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that RAMONA ESPINOSA, 57, MANUEL LIRIANO, 38, and JOSE COLLADO, 36, all of Waterbury, have been charged with federal fentanyl distribution offenses.
As alleged in court documents and statements made in court, the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force identified Espinosa, Liriano, and Collado as fentanyl pill traffickers. In September 2023, investigators made two controlled purchases of a total of 550 fentanyl pills from Espinosa. On November 29, 2023, investigators made a controlled purchase of 2,000 fentanyl pills from Espinosa and, on that date, identified Collado as her drug supplier.
On December 12, 2023, a court-authorized search of a Waterbury residence shared by Espinosa and Liriano resulted in the seizure of approximately 10,000 fentanyl pills. Espinosa was arrested on a federal criminal complaint at that time. Liriano was arrested on December 16 and Collado was arrested on December 27.
On December 27, 2023, a federal grand jury in Hartford returned an indictment charging Espinosa, Liriano, and Collado with conspiracy to distribute and to possess with intent to distribute fentanyl, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. In addition, the indictment charges Espinosa with one count of possession with intent to distribute 40 grams or more of fentanyl, which also carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and Espinosa with three counts, and Liriano and Collado with one count, of possession with intent to distribute, and distribution of, fentanyl, an offense that carries a maximum term of imprisonment of 20 years.
Espinosa appeared today before U.S. Magistrate Judge Maria E. Garcia in New Haven and pleaded not guilty to the charges. Liriano and Collado were previously arraigned and also entered pleas of not guilty.
U.S. Attorney Avery stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Espinosa, Liriano, and Collado are each released on a $50,000 bond pending trial.
This matter is being investigated the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, which includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Norwalk, Stamford, Stratford, Milford, and Danbury Police Departments. The case is being prosecuted by Assistant U.S. Attorney Lauren C. Clark.
Tahlequah Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael Shane Lowrey, age 51, of Tahlequah, Oklahoma, was sentenced to time served and two years of supervised release for possessing a firearm after a felony conviction.
The charges arose from investigations by the Cherokee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On March 9, 2022, Lowrey pleaded guilty to the offense. On January 1, 2021, the Cherokee County Sheriff’s Office dispatched deputies to investigate a shooting at a local residence. Deputies answering the call discovered Lowrey with a self-inflicted accidental gunshot wound. Upon questioning, Lowrey admitted to knowingly possessing the firearm despite his felony conviction.
The Honorable Charles B. Goodwin, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting by assignment, presided over the hearing in Oklahoma City.
Assistant United States Attorney Joshua Satter represented the United States.
Six-Time Convicted Felon Charged with Possessing A FirearmRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Lawrence Lamar Singleton II (34, Orlando) with possession of a firearm by a convicted felon. If convicted, Singleton faces a maximum penalty of 15 years in federal prison. The indictment also notifies Singleton that the United States intends to forfeit a Sig Sauer firearm, a Smith & Wesson firearm, Blazer ammunition and Lake City Army ammunition, which are alleged to be involved in the offense.
According to the indictment, on May 14, 2023, Singleton possessed two firearms and ammunition. At the time of the alleged offense, Singleton had prior felony convictions for burglary of a dwelling, possession of a firearm by a convicted felon, fleeing or attempting to elude a law enforcement officer and driving while license suspended (two prior convictions). As such, he is prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orlando Police Department. It will be prosecuted by Assistant United States Attorney Stephanie A. McNeff.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Shiprock Man Charged with Federal Firearms OffenseRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that Crandall Craig Martin was arraigned today in federal court on an indictment charging him with being a prohibited person in possession of a firearm. Martin, 40, of Shiprock, and an enrolled member of the Navajo Nation, will remain in custody pending trial in this case.
According to the indictment, on August 10, 2022, Martin possessed a firearm knowing that he had been previously convicted of both felony offenses and a misdemeanor crime of domestic violence. The government alleges that Martin stole a shotgun from the Navajo Nation Police Department evidence locker intending to exchange it for alcohol. Martin was apprehended without incident by Navajo Nation Police shortly after taking the shotgun.
An indictment is only an allegation. All defendants are presumed innocent unless and until proven guilty. If convicted, Martin faces up to 10 years in prison and up to three years of supervised release thereafter.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and Department of Criminal Investigations. Assistant U.S. Attorney Zachary Jones is prosecuting the case.
View the Indictment# # #
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Shelby County Man Sentenced to 120 Months for Possession of Child PornographyRead the Press Release
FRANKFORT, Ky. – A Shelbyville, Ky., man, Clinton Lyon Mayes, 51, was sentenced on Wednesday, January 10, to 120 months in prison, by U.S. District Judge Gregory VanTatenhove, for possession of child pornography.
According to his plea agreement, Mayes appeared for a reporting day with the Kentucky Probation and Parole department. He admitted that he had a smart phone that contained “young” pornography. The Parole Officer searched the phone and located images of minors engaged in sexually explicit conduct.
Under federal law, Mayes 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 life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Robert Holman, Special Agent in Charge, U.S. Secret Service; Shawn Morrow, Special Agent in Charge, ATF, Louisville Filed Division; Russell Coleman, Kentucky Attorney General; and Sheriff Timothy Mark Moore, Shelby County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by U.S. Secret Service, ATF, Kentucky Attorney General’s Office, and Shelby County Sheriff’s Office. Assistant U.S. Attorney Mary Melton is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
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Rock Island, Illinois Man Sentenced to Federal Prison for Ammunition ChargeRead the Press Release
DAVENPORT, Iowa – A Rock Island man was sentenced on Tuesday, January 16, 2024, to 67 months in federal prison for felon in possession of ammunition.
According to public court documents at the time of his plea hearing, George Harper, Jr., 34, was involved in a shooting incident located at the Kwik Star on 1650 West Kimberly Road in Davenport, Iowa. During the shooting, Harper fired multiple rounds from a firearm possessed unlawfully. Prior to his possession of the ammunition, Harper had been convicted of felon in possession of a firearm in Scott County, Iowa.
After completing his term of imprisonment, Harper, Jr. is required to serve three years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.
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.
Phoenix Man Sentenced to 26 Years in Federal Prison for Armed Robbery Spree that Ended in Violent High-Speed PursuitRead the Press Release
RIVERSIDE, California – An Arizona man was sentenced today to 312 months in federal prison for committing armed robberies of nine stores in Southern California and Arizona during a crime spree in summer 2022 that ended in a high-speed chase in which he fired upon federal agents and, after police rammed his car, shot himself.
Samuel Sven Smith, 28, of Phoenix, was sentenced by United States District Judge Jesus G. Bernal, who also ordered him to pay $8,873 in restitution.
In May 2023, Smith pleaded guilty to two counts of interference with commerce by robbery (Hobbs Act) and two counts of brandishing and discharging a firearm during a crime of violence.
From July 31, 2022, until his arrest on August 20, 2022, Smith went on an armed robbery spree in Los Angeles, Orange and San Bernardino counties, as well as in Arizona. Specifically, Smith admitted robbing a Big Lots store in Riverside and PetSmart stores in Signal Hill, Orange, San Bernardino, Fontana, Pico Rivera, Redlands, Phoenix and Rancho Cucamonga.
In each of these nine robberies, Smith brandished a firearm to control store employees.
“Smith showed complete disregard for the safety of others when he went on his crime spree, threatening store employee with firearms and then opening fire on federal agents,” said United States Attorney Martin Estrada. “We cannot accept such blatant violence on our streets and my office is committed to doing all it can to protect the people of our district.”
After Smith robbed the Rancho Cucamonga PetSmart store on August 20, 2022, stealing $400 from a store employee, he exited the store and was met by law enforcement, which included federal officers. Smith then opened fire at the officers.
Smith then entered his vehicle and sped off, leading law enforcement on a high-speed chase, during which he fired his gun numerous times at pursuing officers. The chase ended when law enforcement rammed into Smith’s vehicle.
According to court documents, when law enforcement approached Smith’s car, they determined he had suffered a gunshot wound underneath his chin. Smith told officers who were performing life saving measures, that when they rammed into his vehicle, he accidentally shot himself, according to an affidavit filed with a criminal complaint in this case.
“This is the type of vicious career criminal that ATF’s task force in Orange County targets daily,” said the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Los Angeles Field Division Special Agent in Charge Christopher Bombardiere. “We work with our law enforcement partners to put these offenders in prison to stop their terrorizing of our communities. I want to thank all the men and women on the task force who risk their lives daily.”
The ATF Orange County Violent Crime Task Force investigated this matter. The task force, which is responsible for investigating serial robberies around Southern California, is composed of investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Brea Police Department; the Fullerton Police Department; the Santa Ana Police Department; and the Orange County District Attorney’s Office. The San Bernardino County Sheriff’s Department provided assistance in this matter.
Assistant United States Attorney Kevin J. Butler of the Violent and Organized Crime Section prosecuted this case.
Orlando Man Sentenced to More Than 8 Years in Federal Prison on Fentanyl and Firearm ChargesRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell has sentenced Jason Santos (27, Orlando) to eight years and four months in federal prison for possession with the intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking offense. The court also ordered Santos to forfeit 11 firearms and various ammunition, which are traceable to the offense. Santos had pleaded guilty on September 22, 2023.
According to court documents, on February 15 and March 14, 2023, Santos sold cocaine to an undercover deputy from the Osceola County Sheriff’s Office. Law enforcement subsequently obtained a search warrant for a residence out of which Santos was operating and recovered 11 firearms, various ammunition, a tactical bag, and drug paraphernalia, including scales and empty clear bags. Officers also recovered various controlled substances, including, fentanyl, cocaine, LSD, MDA, methamphetamine, cannabis, alprazolam, and mushrooms.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Osceola County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Stephanie A. McNeff.
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.
Orlando Felon Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Antavious Anton Gray, Jr. (23, Orlando) has pleaded guilty to possessing a firearm as a convicted felon. Gray faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
According to court records, on October 19, 2022, law enforcement conducted a traffic stop on a vehicle in which Gray was a passenger. The driver gave law enforcement consent to search the vehicle, wherein they located a semi-automatic Smith & Wesson firearm with an extended magazine in a satchel on the floorboard where Gray had been sitting. A lab analysis revealed Gray’s DNA was on the firearm. At the time, Gray had a prior felony conviction for possession of a firearm by a person found to have committed a delinquent act. As a convicted felon, Gray is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Orlando Police Department. It is being prosecuted by Assistant United States Attorney Stephanie A. McNeff.
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.