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Friday 19 January 2024
Lawrence Man Who Concealed More Than Two Kilos of Fentanyl Mixture Inside Cereal Box Sentenced to over Five Years in PrisonRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in federal court in Boston to his role in a fentanyl trafficking conspiracy.
Melvin Antonio Perez Medina, 33, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 64 months in prison, followed by three years of supervised release. In October 2023, Perez Medina pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue; two counts of distribution and possession with intent to distribute 40 grams or more of fentanyl; one count of distribution and possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue; and one count of possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue.
Perez Medina was indicted by a federal grand jury in November 2022 along with alleged co-conspirators Fraily Rodriguez Morillo and Manuel Fredis Guerrero Guzman.
According to court documents, between March 2022 and August 2022 Perez Medina and, allegedly, Morillo and Guzman, conspired to distribute fentanyl and a fentanyl analogue in and around the Lawrence, Woburn, Wilmington and Andover areas. As part of the conspiracy, Perez Medina distributed fentanyl and a fentanyl analogue on three separate occasions during the summer of 2022. At the time of Perez Medina’s arrest in August 2022, he was found in possession of nearly two kilograms of a mixture containing fentanyl and a fentanyl analogue concealed inside of a cereal box. In total, Perez Medina was responsible for distributing and attempting to distribute over 900 grams of fentanyl and over 2.5 kilograms of a fentanyl analogue.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance in the investigation was provided by the Massachusetts Department of Correction; the Norfolk County Sheriff’s Office; and the Boston, Concord, Hudson, Peabody, Reading, Waltham and Watertown Police Departments. Assistant U.S. Attorney Alathea Porter of the Criminal Division is prosecuting the case.
This case 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.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Las Vegas Resident Sentenced to Ten Years in Prison for Role in International Fraud Scheme Targeting Elderly VictimsRead the Press Release
PITTSBURGH, Pa. – Two residents of Las Vegas, Nevada, were sentenced in federal court for conspiracy to commit wire fraud, U.S. Attorney Eric G. Olshan announced today.
United States District Judge J. Nicholas Ranjan sentenced Roderick Feurtado, 57, to 120 months of imprisonment, followed by three years of supervised release, and Tarek Bouanane, 47, to 46 months of imprisonment, followed by three years of supervised release. The Court also ordered restitution totaling $258,520 to 16 victims.
Feurtado and Bouanane were convicted after a five-day trial in September 2023. Evidence at trial established that the defendants traveled to the Pittsburgh area in September 2021 to execute a scheme to defraud elderly victims of large amounts of cash. As part of the scheme, members of the conspiracy contacted numerous victims and falsely claimed that a family member of the victims, usually a grandchild, had been detained in connection with a legal proceeding and needed money for bail. The victims were directed to withdraw cash and provide it to a “courier” who would visit them at their homes. In reality, the victims’ family members had not been detained, and the “courier” was actually a member of the conspiracy. Tarek Bouanane acted as one of these “couriers,” while his co-conspirator Roderick Feurtado acted as the “safehouse,” providing directions to the couriers and collecting the money that had been obtained from the victims. During the trial, the jury heard recorded instructions from one of the defendants’ co-conspirators, directing that “couriers” park far away from the victims’ homes and wear masks to obscure their identities. The defendants kept a portion of the fraud proceeds for themselves, and they had plans to pass along the rest to other co-conspirators, including by converting it to cryptocurrency. During the investigation, the Pennsylvania State Police seized approximately $220,000 from the defendants.
Prior to imposing the sentences, Judge Ranjan emphasized that the harm caused to the victims by the offense was emotional, not just financial. As to Feurtado, the Court noted the defendant’s
lack of remorse and his record of misrepresentations to the Court and the jury during his testimony at trial.Separately, three residents of Panama have been indicted by a federal grand jury for their alleged roles in masterminding the fraud scheme involving Bouanane and Feurtado, among other co-conspirators, which spanned multiple locations throughout the United States in addition to the Western District of Pennsylvania. Stefano Zanetti, Samuel David Ferrer Avila, and Cesar Javier Chourio Morante were arrested and extradited to Pittsburgh in August 2023, and their cases remain pending before Judge Ranjan. They are presumed innocent unless and until proven guilty.
“This office and our law enforcement partners remain committed to vigorously pursuing offenders who target elderly and other vulnerable citizens of Western Pennsylvania through sophisticated financial fraud schemes,” said U.S. Attorney Olshan. “The lengthy prison sentences imposed on Bouanane and Feurtado send a clear message that this conduct will not be tolerated and hopefully will provide some measure of justice and closure to the victims and their families.”
“Today’s sentencing of Roderick Feurtado and Tarek Bouanane is the culmination of an incredible partnership between HSI Pittsburgh, the Pennsylvania State Police, the Bethel Park Police Department and the U.S. Attorney’s Office for the Western District of Pennsylvania,” said Special Agent in Charge of HSI Philadelphia William S. Walker. “Investigations and prosecutions as complex as this one are only successful when teams are truly dedicated to protecting vulnerable members of our society. This type of interagency cooperation has proven to be law enforcement’s most effective tool in bringing these cases to prosecution. Holding accountable financial fraudsters while safeguarding our seniors from exploitation is a preeminent goal of our law enforcement professionals.”
Assistant United States Attorneys Jeffrey R. Bengel and Michael R. Ball prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Department of Homeland Security Investigations, Pennsylvania State Police, and Bethel Park Police Department for the investigation leading to the successful prosecution of Feurtado and Bouanane.
Anyone with information about allegations of elder fraud can report it by calling the National Elder Fraud Hotline at 1-833-FRAUD-11 or 833–372–8311. More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative at https://www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-
protection-branch. Elder fraud complaints may be filed with the FTC at https://reportfraud.ftc.gov/#/assistant?orgcode=USDOJEFH or at 877-FTC-HELP.Lame Deer man sentenced to 14 years in prison for shooting, killing man on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — A Lame Deer man was sentenced today to 14 years in prison, to be followed by three years of supervised release, after he admitted to shooting and killing another man in 2022 on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.
Terence Arturo Limberhand, 32, pleaded guilty in September 2023 to voluntary manslaughter.
U.S. District Judge Susan P. Watters presided. The court also ordered $8,000 restitution.
The government alleged in court documents that on the night of June 21, 2022, Limberhand was driving a four-wheeler and approached the victim, identified as John Doe, who was standing outside of a house near Lame Deer. Limberhand had a dispute with John Doe and an affiliate, leading Limberhand to believe that he and his family may be in danger. Limberhand shot John Doe multiple times before fleeing on the four-wheeler. John Doe was taken to the hospital where he was pronounced dead. Five days later, Limberhand went to a ranch outside of Lame Deer and told individuals there that he had been threatened. Bureau of Indian Affairs officers arrested Limberhand a short time later.
The U.S. Attorney’s Office prosecuted the case. The FBI conducted the investigation.
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Kansas Owner of Construction Firms Sentenced to Two Years in Prison for Employment Tax SchemeRead the Press Release
A Kansas woman was sentenced yesterday to two years in prison for willfully failing to account for and pay over employment taxes to the IRS in connection with three construction firms that she controlled.
According to court documents and statements made in court, Sheryl Clanton, of Bucyrus, owned and operated McCorkendale Construction Inc. (McCorkendale), a business specializing in setting up and maintaining underground infrastructure. As the president of McCorkendale from 2006 through 2011, Clanton was responsible for filing quarterly employment tax returns and collecting and paying to the IRS federal income, Social Security and Medicare taxes withheld from employees’ wages. For the first quarter of 2010 through the last quarter of 2011, however, Clanton did not pay to the IRS approximately $980,536 in employee withholdings.
In 2011, Clanton abandoned McCorkendale due to its outstanding tax debts and a bank mortgage foreclosure and started McClan Construction LLC (McClan). From the second quarter of 2012 through the fourth quarter of 2017, Clanton did not pay approximately $1.1 million of employment taxes or file on behalf of McClan quarterly payroll tax returns as required by law.
Clanton also operated a third underground construction business, NJ Trenching LLC, organized in late 2011. Between 2012 and 2015, Clanton again was responsible for not reporting or paying to the IRS nearly $100,000 of employment taxes relating to NJ Trenching.
In addition to the prison sentence, U.S. District Judge Daniel Crabtree for the District of Kansas ordered Clanton to serve three years of supervised release and to pay $2,223,174.41 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Robert Kemins and Dominick Giovanniello of the Justice Department’s Tax Division prosecuted the case.
KC Man Sentenced to 23 Years for Sexual Abuse of Child Victim, Distributing Video of Abuse OnlineRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for recording his sexual abuse of a seven-year-old victim and sharing a video of the abuse online.
Jeffrey A. Knight, 32, was sentenced by U.S. District Judge Howard F. Sachs to 23 years in federal prison without parole. The court also sentenced Knight to 15 years of supervised release following incarceration.
On Aug. 8, 2023, Knight pleaded guilty to one count of producing child pornography. Knight admitted that he used his iPhone to create an image and two video recordings of his sexual abuse of the child victim on Feb. 2, 2020. Knight then distributed one of those videos over the internet.
Knight also admitted that he sexually abused the child victim on multiple occasions until April 2022.
Knight has been involved in the trafficking and possession of child pornography since at least 2013. He routinely used messaging applications, such as Telegram, to send and receive child pornography from other individuals over the internet. He also paid money to join online groups that focused on the trafficking of child pornography, and engaged in the trafficking of child pornography with other members of those online groups.
Knight uploaded hundreds of images and videos of child pornography to his online storage accounts, including Google and Dropbox, from 2013 until his arrest on Feb. 3, 2023. Knight was in possession of hundreds of images and videos of child pornography at the time of his arrest.
This case was prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Man Sentenced to 15 Years for Attempted Abusive Sexual ContactRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for attempting to engage in abusive sexual contact with two court employees in the parking garage of the Charles Evans Whittaker United States Courthouse in Kansas City, Mo.
Shane Russell Coy, 23, was sentenced on Thursday, Jan. 19, by U.S. Chief District Judge Eric F. Melgren from the District of Kansas to 15 years and eight months in federal prison without parole. The court also sentenced Coy to 10 years of supervised release following incarceration.
On Nov. 1, 2023, Coy pleaded guilty to two counts of attempted abusive sexual contact.
Coy admitted that he unlawfully entered the courthouse underground parking garage on March 7, 2023. As Coy was walking outside by the parking garage exit, the overhead door to the garage exit began to open. As it opened, Coy stepped over the vehicle barricade into the garage exit and approached Victim 1, who was in the driver’s seat of her vehicle, stopped at the exit waiting for the overhead door to open and the vehicle barricade to go down so she could drive out of the garage. Because Victim 1 did not exit the garage soon enough, the exit overhead door and barricade closed, preventing her from driving out.
Coy pulled down his pants and began to masturbate, shouting at Victim 1 to get out of her car. Coy attempted to open a passenger door of the vehicle and punched the driver’s side window with a closed fist. Coy admitted that his actions in attempting to break into Victim 1’s vehicle were done with the specific intent to engage in sexual contact with Victim 1 by some level of force.
Coy then began to approach Victim 2, who had walked into the parking garage from the employee internal entryway door. Victim 2 was able to move away from Coy and position herself behind a vehicle. Coy admitted that he intended to engage in sexual contact with Victim 2 by some level of force.
Coy then ran to the employee entrance door and took an elevator up to the first floor, where he found himself within an enclosed vestibule leading out into the main lobby of the federal courthouse. After a brief period of time, law enforcement officers arrived and took Coy into custody without incident.
According to court documents, Coy was convicted of assault in 2020 after he sexually harassed and assaulted an attendant at a convenience store. Within months of being released from confinement for that conviction, Coy was arrested for the attempted sexual abuse of a postal worker while she was delivering mail at an apartment complex. Earlier on the same day, Coy had confronted a woman who was walking her dog. In all three instances, Coy exposed himself to the victims.
Coy has also been charged in Jackson County, Mo., with sexual misconduct and assault for a similar incident at another parking garage on Feb. 21, 2023. Additionally, according to court documents, on March 7, 2023, Coy exposed himself to two other women at the parking garage and chased one of the victims as she drove through the parking garage shortly before he walked over to the federal courthouse and engaged in the criminal conduct in this federal case.
This case was prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by the U.S. Marshals Service and the Kansas City, Mo., Police Department.
Justice Department Seeks to Shut Down Colorado Tax Return Preparer Filing False and Fraudulent Tax Returns for CustomersRead the Press Release
The United States filed a civil complaint today in the U.S. District Court for the District of Colorado against Denver-area tax return preparer Daniel Mattison. The complaint seeks to enjoin Mattison from owning or operating a tax return preparation business and from preparing federal income tax returns for others.
The complaint alleges that Mattison prepared thousands of federal income tax returns for paying customers between 2018 and 2023 through his business, DCM Financial Inc. Mattison allegedly advertises his business as the “one-stop solution” for people’s tax needs, promising to help his customers and future customers get their taxes done “right.” But the complaint alleges that Mattison fails on this promise by filing tax returns for customers that are riddled with errors, fabrications and fraudulent entries. Mattison allegedly claims false tax credits, fabricates business schedules, creates bogus income and changes tax return information without the customer’s consent or knowledge to reduce taxable income and inflate refunds improperly and illegally. As the complaint states, Mattison continued to prepare and file improper and fraudulent tax returns despite repeated warnings from the IRS about Mattison’s unlawful conduct, the assessment of civil penalties against him and the temporary suspension of his Electronic Filing Identification Number (EFIN) for failing to comply with filing and payment requirements.
By repeatedly understating his customers’ tax liabilities, the complaint alleges that the United States has been harmed by Mattison’s conduct resulting in the significant loss in tax revenue of an estimated $1.99 million in 2018 and 2019 alone.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
mattison_complaint_ecf.pdfJury Convicts Sioux City Man of Methamphetamine Trafficking ChargesRead the Press Release
Johnnie A. Cannon, age 38, from Sioux City, Iowa, formerly from Arkansas, was convicted of one count of conspiracy to distribute methamphetamine and three counts of distributing and aiding and abetting another in the distribution of methamphetamine. Cannon was convicted by a jury on January 18, 2024, after a three-day trial in federal court in Sioux City. The verdict was returned following close to four hours of jury deliberations.
The evidence at trial showed that Cannon worked with others to distribute at least seven pounds of methamphetamine from January 2021 through March 14, 2023. Evidence further showed that on at least three occasions in February and March 2023, Cannon supplied ¼, ½ and ½ pounds of methamphetamine to a co-conspirator, who then distributed the methamphetamine to an individual cooperating with law enforcement. On March 14, 2023, during a traffic stop, Cannon was found in possession of $3,000 in serialized, buy money used by law enforcement minutes before to buy drugs. In 2010, Cannon was also convicted in federal court in 2010 of conspiracy to distribute cocaine and possession with intent to distribute cocaine. Cannon was released from federal prison in 2019.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Cannon remains in custody of the United States Marshal pending sentencing. Cannon faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least ten years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-4023.
Follow us on Twitter @USAO_NDIA.
January 2024 Federal Grand Jury B Indictments AnnouncedRead the Press Release
United States Attorney Clint Johnson today announced the results of the January 2024 Federal Grand Jury B Indictments.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Miguel Acuna-Segura. Unlawful Reentry of a Removed Alien. Acuna-Segura, 40, a Mexican national, is charged with unlawfully reentering the United States after having been removed in May 2011, at or near Laredo, Texas. U.S. Immigration and Custom’s Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 24-CR-020
Kenneth Alejandro Cruz-Bustillo. Alien Unlawfully in the United States in Possession of a Firearm. Cruz-Bustillo, 27, a Honduras national, is charged with knowing he was an illegal alien and unlawfully possessing a firearm and ammunition in Aug. 2023. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Shakema M. Onias is prosecuting the case. 24-CR-019
Miguel Angel Del Rio-De La Torre. Unlawful Reentry of a Removed Alien. Rio-De La Torre, 29, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Nov. 2018, at or near El Paso, Texas. U.S. Immigration and Custom’s Enforcement’s Enforcement and Removal Operations is the investigative agencies. Assistant U.S. Attorney Elliot P. Anderson is prosecuting the case. 24-CR-018
Roque Gaytan-Gonzalez. Unlawful Reentry of a Removed Alien. Gaytan-Gonzalez, 54, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Aug. 2023, at or near Laredo, Texas. U.S. Immigration and Custom’s Enforcement’s Enforcement and Removal Operations is the investigative agencies. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 24-CR-013
Jesus Alberto Monges Sanchez; Cassidy Stone. Drug Conspiracy; Possession of Methamphetamine with Intent to Distribute; Maintaining a Drug-Involved Premises. Monges Sanchez, 32, a Mexican national, is charged with conspiring to distribute and possession of methamphetamine from Oct. 2023 through Jan. 2024. Monges Sanchez, and Stone, 29, of Tulsa, are both charged with maintaining a residence for the purpose of distributing methamphetamine from Oct. 2023 through Jan. 2024. The Drug Enforcement Administration and the Oklahoma Bureau of Narcotics are the investigative agencies. Assistant U.S. Attorney David A. Nasar is prosecuting the case. 24-CR-024
Manuel Manrrique Oviedo-Ucles. Unlawful Reentry of a Removed Alien. Oviedo-Ucles, 39, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Aug. 2014, at or near Houston, Texas. U.S. Immigration and Custom’s Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Elliot P. Anderson is prosecuting the case. 24-CR-014
Rolando Palacios-Castorena. Unlawful Reentry of a Removed Alien. Palacios-Castorena, 36, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Jul. 2017, at or near Del Rio, Texas. U.S. Immigration and Custom’s Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 24-CR-015
Timothy Danel Ray Smeltzer. Assault of an Intimate/Dating Partner by Strangling and Suffocating in Indian Country;
Assault Resulting in Serious Bodily Injury in Indian Country. Smeltzer, 35, of Nowata and member of Cherokee Nation Tribe,
is charged with assaulting a former dating partner by strangling in Dec. 2023. Smeltzer is further charged with assault that
resulted in serious bodily injury. The FBI is the investigative agency. Assistant U.S. Attorney Melissa Weems is prosecuting
the case. 24-CR-016Megan Elizabeth Statum. Possession of Methamphetamine with Intent to Distribute; Possession of Fentanyl with Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Statum, 32, of Tulsa, possessing methamphetamine and fentanyl with intent to distribute in Dec. 2023. She is further charged with possessing a firearm in furtherance of drug trafficking. The Drug Enforcement Administration and Sand Springs Police Department are the investigative agencies. Assistant U.S. Attorney Adam C. Bailey is prosecuting the case. 24-CR-017
Aaron Michael Thomas; Darren Doil Means. Introduction of a Misbranded Drug into Interstate Commerce (Counts 1 through 3); Drug Conspiracy (Count 4); Possession of Pregabalin with Intent to Distribute (Count 5); Maintaining a Drug-Involved Premises (Count 6); Smuggling Goods into the United States (Count 7) (superseding). Thomas, 41, and Means, 58, of Tulsa, are charged with the introduction of the misbranded drugs, gabapentin, xylazine and pregabalin into interstate commerce. The indictment charges that from 2021 through 2023, Thomas and Means conspired to distribute pregabalin, a Schedule V controlled substance, and maintained a residence for the purpose of distribution. Further the indictment alleges that in Oct. 2023, they knowingly possessed pregabalin with intent to distribute. They are both further charged with willfully importing pregabalin into the United States with false labeling in Aug. 2021. The Food & Drug Administration Office of Criminal Investigation and the U.S. Postal Inspection Service are investigating the case. Assistant U.S. Attorneys Nathan E. Michel and Aaron M. Jolly are prosecuting
the case. 23-CR-333Jamestown man arrested, charged in drug conspiracyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Curtis Snyder, 51, of Jamestown, NY, was arrested and charged by criminal complaint with conspiracy to possess with intent to distribute, and to distribute, heroin, fentanyl, and methamphetamine, which carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, state that according to the complaint, Snyder utilized Facebook to communicate and facilitate his drug trafficking activities with Rocco Beardsley. During the investigation, investigators recovered communications between Snyder and Beardsley during which Snyder offered to distribute drugs for Beardsley. Snyder and Beardsley also discussed heroin and fentanyl transactions. Beardsley is also charged in the drug conspiracy.
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.
The complaint is the result of an investigation by the Jamestown Police Department, under the direction of Jamestown Police Chief Timothy Jackson, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Illegal possession of gun sends Billings felon to prisonRead the Press Release
BILLINGS — A Billings felon who admitted to illegally possessing a gun after he lied to law enforcement about his identity because of outstanding warrants was sentenced today to three years and one month in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Patrick Lee Tellez, 50, pleaded guilty in September 2023 to felon in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that on Dec. 30, 2022 in Billings, a Montana Highway Patrol officer conducted a traffic stop on a speeding car in which Tellez was a passenger. Tellez lied about his identity because he had outstanding warrants. Tellez refused the trooper’s order to get out of the vehicle and had to be tazed. When Tellez did get out of the car, the trooper saw a pistol that had been shoved into the passenger seat. Tellez had six prior felony convictions and was prohibited from possessing firearms.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case. The Montana Highway Patrol and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Holdenville Resident Sentenced for MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael David Patton, age 31, of Holdenville, Oklahoma, was sentenced to 210 months in prison for one count of Murder in Indian Country—Second Degree.
The charges arose from investigations by the Federal Bureau of Investigation, the Seminole Lighthorse Police Department, and the Seminole County Sheriff’s Office.
On February 22, 2023, Patton pleaded guilty to Murder in Indian Country—Second Degree. According to investigators, on October 19, 2022, Patton entered a Wewoka residence by force, and stabbed the sleeping victim over ten times. EMS responders transported the victim to an area hospital where he later died of his injuries. The crime occurred in Seminole County, within the boundaries of the Seminole Nation Reservation, in the Eastern District of Oklahoma.
“The diligence and fairness of the legal process has guaranteed Michael Patton will be held accountable for this senseless act of violence,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “I hope this well-deserved prison sentence will bring some measure of closure to the victim’s family. The FBI and our law enforcement partners will never stop working to ensure those who cause harm in our communities are brought to justice.”
“I commend the coordinated investigative efforts of local, tribal, and federal law enforcement in this case,” said United States Attorney Christopher J. Wilson. “Due to their efforts, federal prosecutors were able to pursue criminal charges against Michael Patton and he now faces the just consequences of his heinous act.”
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings. Patton will remain in the 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.
Hilcorp San Juan resolves False Claims Act claims for oil and natural gas royalty underpayments to the United StatesRead the Press Release
HOUSTON – Hilcorp San Juan L.P., an oil and gas company with offices in Houston as well as Aztec, New Mexico, has agreed to resolve allegations it knowingly underpaid royalties owed on oil and natural gas produced from federal lands. The company has agreed to pay $34.6 million to resolve its False Claims Act and other liability for the conduct.
“Oil and gas production is a centerpiece of Houston and Texas’s economies, and for businesses to thrive it’s important that oil and gas companies play by the rules. That’s why my office will vigorously pursue those who deprive the United States of revenue,” said U.S. Attorney Alamdar S. Hamdani. “Royalties from oil and gas production on federal lands help support various public programs, and this settlement demonstrates my steadfast commitment to hold accountable those who fail to pay royalties in full accordance with the law.”
“U.S. taxpayers deserve a fair share of the revenues received by companies that extract natural resources from public lands” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department remains committed to ensuring that energy companies accurately report and pay to the United States the amount of royalties that are owed for their use of these resources.”
“The obligation to properly pay mineral royalties to the American public and other mineral owners is essential to the responsible development of minerals from lands under federal jurisdiction, and along with the Office of Natural Resources Revenue and the Office of the Solicitor, the Office of Inspector General (OIG) is committed to working with the Department of Justice to ensure that companies meet their legal responsibilities,” said Special Agent in Charge Ron Gonzales for the OIG’s Energy Investigations Unit.
Congress allows federal lands to be leased for the production of oil and natural gas in exchange for the payment of royalties on the value of the oil and gas produced. Lessees are required to pay monthly royalties to the federal government for any oil and gas removed or sold from the lease. Although lessees may make estimated royalty payments the month following production, they are required to pay actual royalties at the end of the month following the month in which the estimated payment is made. Lessees are also expected to use a specific transaction code for estimated payments, so that the government can identify circumstances in which a company has temporarily submitted royalties based on estimates. The settlement resolves allegations that, when reporting and paying royalties from August 2017 through December 2018, Hilcorp San Juan knowingly made payments to the federal government based on estimated volumes and prices without indicating that the payments were based on estimates and without subsequently making payments in the following month based on actual volumes and values. This resulted in the underpayment of royalties to the United States.
Hilcorp San Juan cooperated with the United States’ investigation by assisting in the determination of losses and received credit under the Department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Southern District of Texas, DOI’s Office of the Inspector General-Energy Investigations Unit, DOI’s Office of the Solicitor and DOI’s Office of Natural Resources Revenue. Assistant U.S. Attorney Kenneth Shaitelman handled the matter along with Trial Attorney Jonathan Thrope.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Hilcorp San Juan Resolves False Claims Act Claims for Oil and Natural Gas Royalty Underpayments to the United StatesRead the Press Release
Hilcorp San Juan L.P., an oil and gas company with offices in Aztec, New Mexico, and Houston, has agreed to resolve allegations that it knowingly underpaid royalties owed on oil and natural gas produced from federal lands. The company has agreed to pay $34.6 million to resolve its False Claims Act and other liability for the conduct.
“U.S. taxpayers deserve a fair share of the revenues received by companies that extract natural resources from public lands” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department remains committed to ensuring that energy companies accurately report and pay to the United States the amount of royalties that are owed for their use of these resources.”
“Oil and gas production is a centerpiece of Houston and Texas’s economies, and for businesses to thrive it’s important that oil and gas companies play by the rules. That’s why my office will vigorously pursue those who deprive the United States of revenue,” said U.S. Attorney for the Southern District of Texas. “Royalties from oil and gas production on federal lands help support various public programs, and this settlement demonstrates my steadfast commitment to hold accountable those who fail to pay royalties in full accordance with the law.”
“The obligation to properly pay mineral royalties to the American public and other mineral owners is essential to the responsible development of minerals from lands under Federal jurisdiction, and along with the Office of Natural Resources Revenue and the Office of the Solicitor, the Office of Inspector General is committed to working with the Justice Department to ensure that companies meet their legal responsibilities,” said Special Agent in Charge Ron Gonzales of the Department of the Interior Office of Inspector General’s (DOI-OIG) Energy Investigations Unit.
Congress allows federal lands to be leased for the production of oil and natural gas in exchange for the payment of royalties on the value of the oil and gas produced. Lessees are required to pay monthly royalties to the federal government for any oil and gas removed or sold from the lease. Although lessees may make estimated royalty payments the month following production, they are required to pay actual royalties at the end of the month following the month in which the estimated payment is made. Lessees are also expected to use a specific transaction code for estimated payments, so that the government can identify circumstances in which a company has temporarily submitted royalties based on estimates. The settlement resolves allegations that, when reporting and paying royalties from August 2017 through December 2018, Hilcorp San Juan knowingly made payments to the federal government based on estimated volumes and prices without indicating that the payments were based on estimates and without subsequently making payments in the following month based on actual volumes and values, resulting in the underpayment of royalties to the United States.
Hilcorp San Juan cooperated with the United States’ investigation by assisting in the determination of losses and received credit under the department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; U.S. Attorney’s Office for the Southern District of Texas; and DOI-OIG’s Energy Investigations Unit, Office of the Solicitor, and Office of Natural Resources Revenue.
Trial Attorney Jonathan Thrope of the Civil Division and Assistant U.S. Attorney Kenneth Shaitelman for the Southern District of Texas handled the case.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementHazleton Tax Preparer Sentenced to 24 Months’ Imprisonment for Preparing & Filing Hundreds of False Tax Returns Claiming over $800,000.00 of False Education CreditsRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Leidi M. Paulino, age 46, owner of LP Multiservices, a tax preparation business located in Freeland, PA, was sentenced on January 19, 2024, by United States District Judge Julia K. Munley, to 24 months’ imprisonment, to be followed by a one-year term of supervised release, for the offense of aiding and assisting in the filing of false tax returns claiming hundreds of thousands of dollars in unearned education credits.
According to United States Attorney Gerard M. Karam, over the course of 2019 and 2020, Paulino assisted hundreds of clients in preparing and filing false tax returns that were materially false in that they sought on the clients' behalf certain education tax credits, including the American opportunity tax credit, to which the clients were not entitled. Indeed, the vast majority of Paulino's clients were not enrolled in college at all. Paulino’s conduct resulted in hundreds of thousand dollars of loss to the government
At her sentencing, Paulino was ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $888,377.00.
This case was investigated by IRS-Criminal Investigations. Assistant U.S. Attorney Jeffery St John prosecuted the case.
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Georgian Pleads Guilty to Making Death Threats Against Public OfficialsRead the Press Release
MACON, Ga. – A Middle Georgia resident with a criminal history of arson and sending death threats pleaded guilty to mailing threatening communications in federal court today.
Travis Leroy Ball, 56, of Barnesville, Georgia, pleaded guilty to one count of mailing threatening communications before U.S. District Judge C. Ashley Royal on Jan. 19. Ball faces a maximum of five years in prison to be followed by three years of supervised release and a maximum $250,000 fine. Sentencing will be determined by the Court. Ball is not eligible for parole.
“Death threats against public officials are taken extremely seriously by our office and will result in prison time,” said U.S. Attorney Peter D. Leary. “Keeping people safe is the highest priority of our office and our law enforcement partners; these types of threats cannot and will not be tolerated.”
“Threats against public servants are not only illegal, but also a threat against our democratic process,” said Robert Gibbs, Supervisory Senior Resident Agent in Charge of FBI Atlanta’s Macon office. “While Mr. Ball’s continued criminal conduct clearly illustrates his lack of concern and compassion for others, it also illustrates his unwillingness to be rehabilitated. Hopefully, this additional sentence will finally send the message that the FBI will not tolerate his hate fueled hoaxes and will continue to hold him accountable.”
According to court documents, the FBI obtained a letter on March 10, 2023, addressed to U.S. District Court Judge Marc T. Treadwell in which the writer was purporting to be a U.S. Secret Service agent who investigated one of the defendant’s prior cases. In the letter—later determined to be written by the Ball—the writer demanded that the charge in Ball’s most recent federal case be dismissed, and he be let out of federal custody.
Ball—using the name of a former cell mate—also wrote letters to the U.S. District Court in Valdosta, Georgia, and the U.S. Department of Housing and Urban Development in Washington, D.C., in March and May 2023 respectively, threatening to kill employees and their families, as well as burn down property.
In addition, Ball wrote a letter to the Upson County Sheriff’s Office in July 2023, purporting to be an FBI agent working on a top-secret case and demanded that Ball’s photos and personal information be removed and deleted from jail records.
The FBI compared the letters, handwriting, letterhead, postage stamps, verbiage and the “INMATE MAIL” stamp on each letter and determined that Ball wrote the letters while in custody. The defendant’s DNA was compared against the letters sent to the U.S. Courthouse in Valdosta and the letter impersonating a U.S. Secret Service Agent sent to U.S. District Chief Judge Treadwell. The results confirmed Ball’s DNA on both letters. Officers found the writing material and stamps in Ball’s cell. For more information about Ball’s prior convictions for threats, please visit: https://www.justice.gov/usao-mdga/pr/georgia-man-sentenced-federal-prison-threats-against-president.
The case was investigated by FBI with assistance from the U.S. Department of Homeland Security, Federal Protective Services, the U.S. Secret Service, the U.S. Marshals Service and the Upson County Sheriff’s Office.
Deputy Criminal Chief Will Keyes is prosecuting the case for the Government.
Galesburg, Illinois, Man Sentenced to 144 Months in Prison for Armed Bank RobberyRead the Press Release
ROCK ISLAND, Ill. – A Galesburg, Illinois, man, Theus Randolph, 23, of the 1700 block of Rock Island Avenue, was sentenced on January 17, 2024, to 144 months imprisonment, to be followed by 5 years of supervised release, for conspiracy to commit armed bank robbery, armed bank robbery, and using or carrying a firearm during and in relation to a crime of violence. Randolph was further ordered to pay restitution in the amount of $28,744.
Randolph entered a plea of guilty on July 18, 2023. One remaining member of the conspiracy, Dantonis Tayjohn Lewis Fair, has pleaded guilty and is scheduled to be sentenced on February 14, 2024.
At the sentencing hearing, Chief U.S. District Court Judge Sara L. Darrow commented on the need for citizens to feel safe in their workplaces and the lifelong impact Randolph and his co-defendant’s actions had on the employees they terrorized.
The statutory penalties for conspiracy to commit armed bank robbery is up to 5 years imprisonment, to be followed by not more than three years of supervised release. The statutory penalty for armed bank robbery is up to 25 years imprisonment, to be followed by not more than five years of supervised release. The statutory penalty for using or carrying a firearm during and in relation to a crime of violence is 7 years to life imprisonment, to be followed by not more than five years of supervised release.
The Rock Island Police Department investigated the case. Assistant U.S. Attorney Jennifer Mathew represented the government in the prosecution.
Franklin Resident Sentenced to More Than Three Years of Imprisonment for Firearms ViolationsRead the Press Release
ERIE, Pa. - On January 18, 2024, a resident of Franklin, Pennsylvania, was sentenced in federal court to 40 months in prison on his conviction of violating federal firearms laws, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Phillip John Dechant, 40, of Franklin.
According to information presented to the court, on or about April 22, 2020, Dechant possessed numerous firearms while being a convicted felon. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Department of Homeland Security, Immigration and Customs Enforcement, for the investigation leading to the successful prosecution of Dechant.
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.
Four-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 Kristian Ramos (43, Kissimmee) with possession of a firearm by a convicted felon. If convicted, Ramos faces a maximum penalty of 15 years in federal prison. The indictment also notifies Ramos that the United States intends to forfeit a Beretta Nano 9mm handgun, which is alleged to be involved in the offense.
According to the indictment, on May 23, 2023, Ramos possessed a Beretta Nano 9mm handgun. At the time of the alleged offense, Ramos had prior felony convictions for robbery with a deadly weapon, possession of a controlled substance, and robbery. 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 Orange County Sherriff’s Office. It will be prosecuted by Assistant United States Attorney Noah P. Dorman.
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.
Fort Hall Man Sentenced to over 21 Years in Federal Prison for Shooting and Killing Another ManRead the Press Release
POCATELLO – Rydon Clyde Teton, 38, who is a member of the Eastern Shoshone Tribe of Fort Washakie, Wyoming, and a resident of Fort Hall, Idaho, was sentenced to 253 months in federal prison for the shooting death of another man in January 2018, on the Fort Hall Indian Reservation, U.S. Attorney Josh Hurwit announced today.
According to court records, on February 2, 2018, the Fort Hall Police Department and the Fort Hall Fire Department were called to a residence on the Fort Hall Indian Reservation for a fire at a home. Witnesses said they saw a fire inside the home and entered to investigate. The witnesses found a deceased and burned body, which they moved to the porch, and they then called police. The fire was extinguished and the body was identified as that of the victim, who had been shot several times days earlier. The law enforcement investigation led to Teton, who reportedly had earlier been seen carrying a gun. Officers located Teton at a trailer park in Pocatello, where Teton’s gun was located. Teton was interviewed by Fort Hall police and FBI agents. Teton stated that he and the victim had an argument about a debit card. Teton said he and the victim struggled and Teton then had the idea to shoot the victim, which he did. He admitted later burning the body. He also admitted using his gun to commit this violent crime.
The 253-month sentence imposed by Chief U.S. District Judge David C. Nye is a combined sentence consisting of 133 months for the voluntary manslaughter charge and a consecutive 120 months for the use of the firearm in committing the killing. Chief Judge Nye ordered Teton to pay restitution in the amount of $68,339.11 for the victim’s funeral expenses and for his lost tribal income, which is to be paid to the victim’s minor child. Judge Nye also ordered Teton to serve five years of supervised release following his prison sentence.
Judge Nye granted Teton 111 days of credit for the time he served in tribal jail on the same charge before coming into federal custody. He pleaded guilty to the charge of voluntary manslaughter and to a charge of the use of a firearm in a violent crime on August 16, 2023.
U.S. Attorney Josh Hurwit commended the cooperative efforts of the Federal Bureau of Investigation and the Fort Hall Police Department, which led to the charges. Assistant U.S. Attorney Jack Haycock prosecuted the case.
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Former Puyallup man who conspired to cut power for burglary scheme sentenced to probation and home confinementRead the Press Release
Tacoma – A 32-year-old former Puyallup, Washington, man was sentenced today in U.S. District Court in Tacoma to three years of probation including one year of home confinement for Conspiracy to destroy energy facilities, announced U.S. Attorney Tessa M. Gorman. Matthew Greenwood pleaded guilty in April 2023, admitting that he and co-defendant Jeremy Crahan, 40, vandalized four power substations and plotted to fell trees to take out power lines. Both men were arrested before the tree plan was put into action. Chief U.S. District Judge David G. Estudillo said the crime was very serious, but he also recognized that the defendant had made great progress since his arrest.
Prosecutors joined with U.S. Probation in recommending the probationary sentence so that Greenwood could continue his progress toward a drug free and law-abiding life.
According to the facts in the plea agreement, Greenwood and Crahan hatched the scheme to disrupt power so they could break into ATMs and businesses and steal money. On December 25, 2022, they damaged four substations:
- Hemlock Substation in Puyallup, Washington, owned by Puget Sound Energy. Here, the two cut through a fence and Greenwood manipulated a switch damaging equipment and cutting power for 8,000 customers.
- Elk Plain substation in Spanaway, Washington, owned by Tacoma Power. The men cut padlocks on the gate and Greenwood manipulated breakers to damage equipment and cause an outage.
- Graham substation in Graham, Washington, operated by Tacoma Power. The men cut through a perimeter fence and Greenwood manipulated a switch to damage equipment. This outage, combined with the Elk Plain substation outage, caused more than 7,500 customers to lose power.
- Kapowsin Substation in Graham, Washington, operated by Puget Sound Energy. The men cut through a fence and Greenwood tampered with a switch causing sparks, flame, and a power outage.
Co-defendant Jeremy Crahan was not successful in drug treatment and was sentenced in December to 18 months in prison.
The FBI investigated the case with assistance from the Pierce County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Tacoma Police Department, the Washington State Department of Corrections, and the Federal Protective Service.
The case was prosecuted by Assistant United States Attorney Todd Greenberg.
Former Killeen Housing Authority Executive Director Arrested on Federal Embezzlement ChargesRead the Press Release
WACO, Texas – An Austin woman was arrested this week on criminal charges related to her alleged embezzlement of federal funds for personal use while serving as the executive director of the Killeen Housing Authority (KHA).
According to court documents, DeAdra Johnson, 52, allegedly stole thousands of dollars designated for KHA programs and used them for personal use. A federal indictment alleges that Johnson used the stolen funds to pay for personal vehicle downpayments; vehicle repairs and loan payments; monthly rent; electricity and internet service bills; home furniture purchases; and the purchase of a flight for personal travel.
Now defunct, KHA managed more than 50 public housing residential units and administered housing programs enabling low-income families to lease or purchase safe and affordable housing. KHA had an annual contract with the U.S. Department of Housing and Urban Development (HUD) from which it received several hundred thousand dollars annually in assistance from the federal government.
Johnson is charged with nine counts of theft of government property and one count of false statement. If convicted, she faces up to 10 years in prison for each theft of government property charge and up to five years for the false statement charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas, Special Agent in Charge Bertrand Nelson for the Housing and Urban Development Office of Inspector General’s (OIG) Southcentral Region and Acting Special Agent in Charge Doug Olson for the FBI San Antonio Division made the announcement.
HUD OIG and the FBI are investigating the case.
Assistant U.S. Attorneys Greg Gloff and Siddharth Dadhich are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Fiscal Officer for Non-Profit Company Pleads Guilty to Stealing Nearly $2.3 Million from Brooklyn CharityRead the Press Release
Earlier today, Marcia Joseph pleaded guilty at the federal courthouse in Brooklyn, to wire fraud in connection with her embezzlement of approximately $2.3 million from her employer, a non-profit organization that provides employment and education services for those in need. Joseph was arrested in October 2023. Today’s proceeding was held before United States District Judge Eric N. Vitaliano. When sentenced, Joseph faces up to 20 years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the guilty plea.
“With her guilty plea today, the defendant admitted that she failed in her duty to serve a non-profit organization by stealing millions of dollars for personal expenses that were meant to be spent in its mission helping vulnerable members of the community,” stated United States Attorney Peace. “When she is sentenced, the defendant will learn the penalty for her dishonesty and greed.”
“This defendant created a company for the sole purpose of siphoning $2.3 million from the City-funded nonprofit where she worked. She took valuable funds meant for the educational and employment needs of economically disadvantaged New Yorkers for her personal profit. DOI thanks our federal partners, the U.S. Attorney’s Office for the Eastern District of New York and the FBI, for their commitment to protecting precious public funds that help those in need,” stated DOI Commissioner Strauber.
According to the complaint, court filings, and facts presented during the plea hearing, Joseph was the senior fiscal officer of Company-1, a 501(c)(3) non-profit organization located in Brooklyn, New York that provides comprehensive services to support employment opportunities for persons with emotional, developmental, and/or physical disabilities, and those who are economically disadvantaged. Joseph set up a company called Prestige Business Services (“Prestige”), which purported to provide specialized services to other companies on behalf of Company-1. In truth, Prestige performed no work, and was used by Joseph for the exclusive purpose of embezzling more than $2.3 million from Company-1 over a 16-year period. Joseph used the money paid by Company-1 to Prestige to pay for numerous personal expenses, including approximately $235,000 in mortgage payments; $207,000 in credit card payments; $98,000 in car payments; $45,000 in Amazon expenses; and various other personal items, such as home remodeling, spa treatment, landscaping expenses, and luxury goods. Joseph also withdrew nearly $100,000 in cash, disbursed approximately $16,000 to friends and family, and issued approximately $50,000 in Prestige checks to herself.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Eric Silverberg is in charge of the prosecution with assistance from Paralegal Specialists Elizabeth Reed and Melissa Bennett.
The Defendant:
MARCIA JOSEPH (also known as “Marcia James,” “Marcia Lewis,” and “Marcia Peters”)
Age: 57
Baldwin, New YorkE.D.N.Y. Docket No. 24-CR-4 (ENV)
Former Bookkeeper for Mukilteo flooring company convicted of wire fraud, aggravated identity theft, and conspiracyRead the Press Release
Seattle – The former bookkeeper of a Mukilteo, Washington, flooring company was convicted today in U.S. District Court in Seattle of four counts of wire fraud, one count of aggravated identity theft, and one count of conspiracy, announced U.S. Attorney Tessa M. Gorman. Jodi Hamrick, who now resides near Memphis, Tennessee, was convicted following a five-day jury trial. The jury deliberated about eight hours before returning the guilty verdicts.
According to records filed in the case and testimony at trial, Hamrick conspired with David M. Gluth, the co-owner of Gluth Contract Flooring, to steal from the company and defraud the silent partner who had put up the money for the business. In the jury trial, prosecutors detailed how Hamrick and Gluth carried out the scheme by embezzling more than $400,000 from the commercial flooring business. Between 2011 and 2016, Gluth and Hamrick raided the company accounts to pay for everything from a home mortgage, to luxury vacations, to Nordstrom bills.
The two not only raided company funds, they also defrauded financial institutions by taking out loans without the knowledge or permission of the company’s co-owner. The two used the company funds for a variety of personal expenses. The lies and deceit in this scheme involved forged signatures, forged documents, altered records, secret bank accounts, secret credit cards, false bookkeeping entries, and false statements in declarations and court filings. The evidence in the case includes years of Skype instant messages between Hamrick and Gluth, showing the planning and execution of the fraud in minute detail.
Ultimately, the company co-owner had to go to court to try to get the truth about the embezzlement from the company. The flooring company went bankrupt in 2016, and the victimized business partner was left with nothing but debt.
In closing arguments prosecutor Jessica M. Ly told the jury, Hamrick’s role was “cooking the books, and keeping the money moving.” They noted that for four years, Hamrick paid her home mortgage with company funds. “Committing fraud was as routine for Jodi Hamrick as having her morning cup of coffee,” Assistant United States Attorney Mike Dion told the jury in closing.
Judge Jones scheduled Hamrick’s sentencing for April 26, 2024. Wire fraud is punishable by up to 20 years in prison. Conspiracy is punishable by up to five years in prison. Aggravated Identity Theft carries a mandatory minimum two years to follow any other sentence imposed in the case.
Gluth was charged in November 2020, and pleaded guilty in January 2021. Gluth was sentenced in 2021 to two years in prison and agreed to a restitution figure of $325,000.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Michael Dion and Special Assistant United States Attorney Jessica M. Ly.
Foreign National Sentenced for Human Smuggling and Money Laundering SchemeRead the Press Release
ALEXANDRIA, Va. – An Israeli national was sentenced today to two years in prison for his leadership role in a conspiracy to launder money and facilitate the illegal entry, harboring, and transporting of noncitizens in the United States for the purpose of their employment.
According to court documents, Shai Cohen, 39, organized and worked with others to recruit and facilitate the illegal entry of Israeli citizens into the United States under false pretenses. From approximately 2011 through December 2013, Cohen and his co-conspirators assisted noncitizens in fraudulently obtaining B-1/B-2 tourist/visitor visas by misrepresenting the true purpose of their travel to the United States, which was illegal employment. Cohen and his co-conspirators then assisted the noncitizens in traveling to the United States.
Upon arrival, the noncitizens were employed at various kiosks owned and operated by Cohen and his co-conspirators at malls in Virginia and Maryland, despite entering the United States in a visa status that did not allow them to work. The noncitizens who engaged in illegal employment were primarily compensated for their work by under-the-table cash payments or the transfer of money to stored value payment cards, rather than through a legitimate payroll system. Cohen also provided the noncitizens housing and transportation to and from work in the United States. The conspiracy involved the smuggling, transporting, or harboring of at least 25 unlawful foreign nationals. Cohen and his co-conspirators also made foreign and domestic financial transactions in furtherance of and to promote the criminal scheme.
Cohen pleaded guilty on November 7, 2023, to one count of conspiracy to commit offenses against the United States and one count of conspiracy to launder money. Cohen was arrested in Israel pursuant to a U.S. request for his extradition. In August 2023, he was extradited to the Eastern District of Virginia.
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; Derek W. Gordon, Special Agent in Charge of the Homeland Security Investigations (HSI) Washington Field Office; and Troy W. Springer, Special Agent in Charge of the Department of Labor Office of Inspector General (DOL-OIG), National Capitol Region, made the announcement after Senior U.S. District Judge Claude M. Hilton announced the sentence.
Assistant U.S. Attorney Raizza K. Ty and Trial Attorney Clayton O’Connor of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
The Justice Department’s Office of International Affairs worked with the government of Israel to secure the arrest and extradition of Cohen.
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. 1:16-cr-114.
Florida Woman Sentenced for Disrupting FlightRead the Press Release
PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that Jessica Navarro, 31, of Winter Springs, Florida, was sentenced to nine months’ imprisonment and one year of supervised release by the Honorable Judge Nitza I. Quinones Alejandro.
In June 2023, Navarro pleaded guilty to one count of interfering with a flight crew, one count of assaulting a flight attendant, and one count of assaulting a passenger. On January 11, 2022, the defendant, under the influence of alcohol, had kicked the seats in front of her, spat on passengers, and physically resisted the flight crew. The defendant’s conduct escalated, with Navarro striking a flight attendant and a passenger, causing a Frontier Airlines flight that departed Orlando, Florida, to be diverted from its intended Islip, New York, destination and land at Philadelphia International Airport.
“Jessica Navarro’s violent conduct endangered and traumatized passengers, and severely inconvenienced everyone aboard that plane,” said U.S. Attorney Romero. “Air travel can already be a stressful experience, and the last thing anyone should have to deal with is such drunken and dangerous behavior en route to their destination. If you commit a federal crime aboard an aircraft, expect to be held accountable.”
“Passengers like Navarro do more than disrupt a flight, they put all passengers and the entire crew at risk,” said Wayne A. Jacobs, FBI Philadelphia's Special Agent in Charge. “Today’s sentencing sends a message to anyone who might engage in disruptive behavior or violence aboard an aircraft: Upon your arrival, FBI agents will be waiting to bring you to justice.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Florida Attorney Pleads Guilty in Fraudulent Charitable Contribution Tax SchemeRead the Press Release
A Florida attorney pleaded guilty today to conspiracy to defraud the United States and tax evasion arising out of his promotion of an illegal tax shelter scheme involving false charitable deductions.
According to court documents, from at least 2013 through 2021, Michael L. Meyer, of Davie, organized and sold the Ultimate Tax Plan, an illegal tax shelter designed to assist high-income individuals in reducing their taxes. Meyer marketed the scheme as a way for clients to reduce their taxes by claiming deductions for charitable donations that he knew were fraudulent. Meyer prepared boilerplate transaction paperwork for his clients which made it appear that they had donated valuable property to charities Meyer controlled. In fact, the clients retained complete control over the donated assets. Meyer illegally advised that clients could access their donated assets for their own personal use through tax-free loans and execute an “exit strategy” to buy back their donations at a significantly discounted rate. In some instances, Meyer backdated documents so that clients could claim these purported donations on their prior years’ tax returns.
In April 2018, the Justice Department filed a civil suit against Meyer seeking to enjoin him from continuing to promote the Ultimate Tax Plan. As part of that litigation, the department issued civil subpoenas to Meyer’s clients requesting records related to the Ultimate Tax Plan. In response, Meyer created false, backdated documents and directed clients to submit them to the Justice Department. Meyer also provided false, backdated documents in response to document demands he directly received from the Justice Department. In April 2019, a federal district court permanently enjoined him from organizing, promoting, marketing or selling the Ultimate Tax Plan.
Meyer earned more than $10 million from selling the Ultimate Tax Plan. He used that income to purchase a multimillion-dollar estate and a luxury vehicle collection that included Lamborghinis, Rolls Royces, Mercedes Benzes, a Bentley and a Ferrari.
A sentencing date has not been set yet. Meyer faces a maximum penalty of five years in prison for each charge. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief Michael Boteler and Trial Attorneys Andrew Ascencio and Michael Jones of the Tax Division are prosecuting the case.
Five Defendants Arrested for $7 Million Embezzlement Scheme Targeting IT Services CompanyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Stuart M. Goldberg, the Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); Thomas M. Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”); and Jonathan Mellone, the Special Agent in Charge of the Northeast Regional Office of the U.S. Department of Labor – Office of Inspector General (“DOL-OIG”), announced the arrests today of five defendants on fraud charges: MARK ANGAROLA, ALLISON ANGAROLA, JOSE GARCIA, MICHELLE COX, and LISA MINCAK. The five defendants are charged with perpetrating a yearslong embezzlement scheme that involved both no-show jobs and disguising personal expenses as purported business expenses. In addition, three of the defendants — MARK ANGAROLA, GARCIA, and COX — are charged with tax fraud for their failures to report income to the IRS, including income derived from the embezzlement scheme. MARK ANGAROLA and ALLISON ANGAROLA were arrested earlier this week in Point Lookout, New York, and were presented in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker; JOSE GARCIA and MICHELLE COX surrendered today and will be presented in Manhattan federal court before Magistrate Judge Parker; and LISA MINCAK surrendered yesterday and was presented in the Eastern District of Texas before U.S. Magistrate Judge Kimberly C. Priest Johnson. The case has been assigned to U.S. District Judge Dale E. Ho.
U.S. Attorney Damian Williams said: “As alleged, the five defendants engaged in a brazen, lengthy embezzlement scheme that involved no-show jobs, false timesheets, fraudulent billings, and disguising personal expenses as purported business expenses. In total, they allegedly bilked a corporate victim out of more than $7 million. As part of the alleged scheme, the defendants charged an array of personal expenses to a corporate victim, including a cruise, hotels, private car service, gentlemen’s clubs, and more. Several defendants also allegedly sought to conceal the fraud by failing to report, or pay taxes on, the income they received from the scheme. Today’s arrests are yet another example of this Office’s commitment to holding accountable those who commit financial fraud.”
FBI Assistant Director in Charge James Smith said: “When an individual puts in an honest day’s work, they deserve to be compensated fairly. The defendants in this case allegedly sought to do the opposite, scheming to create a dishonest plan involving no-show jobs and reporting personal spending as business. Through their alleged scam, they received significant benefits including payment, travel, and entertainment. The FBI will ensure that anyone attempting to benefit from deceit is instead held accountable in the justice system.”
IRS-CI Special Agent in Charge Thomas M. Fattorusso said: “The five defendants allegedly created a web of lies, resulting in a scheme to embezzle millions, while three are additionally charged with evading taxes on their illicit gains. Though it’s purported they ‘lived the good life’ through this deception, today’s arrests ensure that their very near future won’t be so comfortable.”
According to the allegations in the Indictment:[1]
From at least in or about May 2010 through at least in or about February 2019, the five defendants and others (the “Conspirators”) executed a fraudulent scheme to unlawfully enrich themselves by submitting and causing to be submitted fraudulent invoices and expenses to an information technology (“IT”) services company (the “Contractor”), at which MARK ANGAROLA was employed in a senior position.
Specifically, MARK ANGAROLA was a Global Account General Manager at the Contractor, working out of the Contractor’s office in New York, New York. MARK ANGAROLA was responsible for managing the Contractor’s relationship with a particular client, which was a subsidiary of a global financial institution (the “Client”). The Contractor had a service contract with the Client, pursuant to which the Contractor would provide IT support services to the Client at locations across the United States. The Contractor subcontracted certain of its work under the Service Contract to a technology solutions company (the “Subcontractor”) based in New Jersey. Pursuant to the agreement between the Contractor and the Subcontractor (the “Subcontract”), the Subcontractor provided certain IT support services directly to the Client in the place of the Contractor. MARK ANGAROLA was responsible for oversight of the Subcontractor’s performance under the Subcontract, which included approving payment to the Subcontractor on invoices submitted for work purportedly performed and expenses purportedly incurred in the Subcontractor’s performance on the Subcontract.
MARK ANGAROLA used his position at the Contractor — and in particular his oversight of the Contractor’s relationship with the Client and the Subcontractor — to fraudulently enrich himself, his family, and his friends. For example, MARK ANGAROLA arranged for the Subcontractor to hire certain of his family members, friends, and subordinates, despite the fact that these individuals — which included a schoolteacher, a homemaker, a police sergeant, and a manager in the construction industry — lacked apparent qualifications to perform deskside IT work. MARK ANGAROLA arranged for the Subcontractor to hire, among others, ALLISON ANGAROLA, JOSE GARCIA, MICHELLE COX, and LISA MINCAK, the defendants. Thereafter, ALLISON ANGAROLA, GARCIA, COX, MINCAK, and others who MARK ANGAROLA caused to be hired by the Subcontractor, repeatedly falsely reported to the Subcontractor that they had performed work under the Subcontract and incurred business expenses. GARCIA also used nominee corporate and limited liability entities to further disguise his receipt of funds for purported work performed under the Subcontract, including for alleged “Management Fees” due. The Subcontractor submitted invoices to the Contractor for the hours purportedly worked by several of the Conspirators, for purported management fees allegedly due and for the purported business expenses incurred by several of the Conspirators in connection with that work, which hours, fees, and expenses were falsely reported to the Subcontractor by the Conspirators. MARK ANGAROLA, in turn, caused the Contractor to pay the Subcontractor on these fraudulent invoices.
The purported business expenses incurred by several of the Conspirators and ultimately paid for by the Contractor at the direction of MARK ANGAROLA included, among other things, restaurant meals, hotel stays, transportation fees, a cruise, and gentlemen’s clubs. In fact, the expenses were personal expenses and were not reimbursable. In addition, to circumvent the Contractor’s expense policies, MARK ANGAROLA charged certain of his own personal expenses — including a private car service that he used for personal travel to restaurants, cigar bars, and gentlemen’s clubs, and to transport his children to visit family regularly and his friends to parties at his residence — to credit cards in the name of co-conspirators, including LISA MINCAK. MARK ANGAROLA, with the assistance of MINCAK and others, who falsely represented to the Subcontractor that the expenses were incurred in connection with work for the Subcontractor, fraudulently caused the Contractor to pay for such personal expenses of MARK ANGAROLA.
As a result of the scheme, MARK ANGAROLA, ALLISON ANGAROLA, JOSE GARCIA, MICHELLE COX, and LISA MINCAK, and entities controlled by certain Conspirators, received personal benefits, including travel, meals, and entertainment, and were paid substantial sums. For example, despite the fact that most Conspirators provided few, if any services, to the Client, the Conspirators fraudulently obtained at least the following approximate amounts through this scheme: $1,468,215 to MARK ANGAROLA; $751,641 to ALLISON ANGAROLA; $4,554,950 to JOSE GARCIA and entities he controlled; $335,500 to MICHELLE COX; $88,793 to LISA MINCAK; and $90,521 to Anthony Lisi, a previously charged co-conspirator who pled guilty for his involvement in the embezzlement scheme on September 13, 2022, before U.S. District Judge Paul A. Engelmayer.
Several participants in this fraud scheme also committed related tax fraud by concealing from the IRS substantial income that they had obtained through the scheme. For several years, MARK ANGAROLA and JOSE GARCIA committed tax evasion, and MICHELLE COX failed to file individual income tax returns.
* * *
MARK ANGAROLA, 50, of Point Lookout, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; and three counts of tax evasion, which each carry a maximum sentence of five years in prison.
ALLISON ANGAROLA, 53, of Point Lookout, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison.
JOSE GARCIA, 52, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; and three counts of tax evasion, which each carry a maximum sentence of five years in prison.
MICHELLE COX, 52, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; and two counts of failure to file an individual income tax return, which each carry a maximum sentence of one year in prison.
LISA MINCAK, 46, of Plano, Texas, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud conspiracy, which carries a maximum sentence of 20 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding efforts of the FBI, IRS-CI, and DOL-OIG. Mr. Williams also noted that the investigation is ongoing.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Michael D. Neff, Timothy V. Capozzi, and Special Assistant U.S. Attorney Jorge Almonte of the Tax Division are in charge of the prosecution.
The charges contained in the 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 Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Federally Licensed Firearms Dealer Pleads Guilty to Falsifying Sale PaperworkRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Angel Ruben Hernandez, Jr. (75, Altamonte Springs) has pleaded guilty to three counts of failing to record required information about firearms purchases. Hernandez faces a maximum penalty of five years in federal prison for each count. A sentencing date has not yet been set.
According to the plea agreement, Hernandez was an owner and responsible party for Arms Hill LLC, a federally licensed firearms dealer (FFL or Federal Firearms Licensee) from 2019 through 2023. In 2022, the FBI obtained information that Hernandez was supplying firearms to an individual who was unlawfully selling them to drug dealers and convicted felons and that Hernandez was falsifying paperwork in connection with supplying those firearms. FFL dealers who operate within the law require purchasers to complete specific forms (ATF Form 4473) and answer numerous questions about the buyer’s background and eligibility to purchase firearms. Firearms that are sold without a Form 4473 indicating the true purchaser are more valuable on the black market because they provide an avenue for otherwise prohibited persons to acquire firearms.
Beginning in April 2023, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), through a cooperating source, conducted a series of undercover purchases from Hernandez. On April 20 and 24, 2023, and again on May 1, 2023, Hernandez sold nine firearms to the ATF’s source. Hernandez charged above-market prices for the firearms while also creating false ATF Form 4473 forms documenting fake sales to Hernandez’s relatives. On May 19, 2023, during the execution of a search warrant, ATF agents found pre-filled ATF 4473 forms with information from Hernandez’s relatives that had been pre-populated and prepared for future fake sales. Hernandez’s FFL records indicate that nearly a quarter of his sales as an FFL from 2019-2023, including more than 260 firearms, were recorded as though they were sold to his relatives.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Federal Bureau of Investigation, the Apopka Police Department, and the Altamonte Springs Police Department. It is being prosecuted by Assistant United States Attorneys Dana E. Hill and Noah Dorman.
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.
Federal Jury Finds Mercer County Couple Guilty of Witness Tampering ConspiracyRead the Press Release
CHARLESTON, W.Va. – After a one-day trial that ended late yesterday, a federal jury convicted Terry Leon Blankenship, 55, and his wife Laurel Blankenship, 56, both of Bluefield, of conspiracy to commit witness tampering. The jury also convicted Terry Leon Blankenship of attempted witness tampering and interfering with the enforcement of the federal sex trafficking of a minor statute.
Evidence at trial proved that from on or about April 4, 2023 through at least July 25, 2023, Terry Leon Blankenship and Laurel Blankenship conspired to influence the testimony of a witness in a federal sex trafficking case against Terry Leon Blankenship. The witness was a 12-year-old girl who had alleged the sex trafficking against Terry Leon Blankenship and later recanted. In multiple recorded audio and video jail calls while Terry Leon Blankenship was incarcerated in the sex trafficking case, he and his wife had multiple conversations about ensuring that the minor witness stuck with her recantation. The recorded conversations included discussions about influencing who had custody of the minor and bribing the minor witness with an iPhone to ensure she stood by her recantation.
“This case was not about whether the initial allegations or the recantation were true. The defendants corruptly attempted to influence which way this 12-year-old girl testified,” said United States Attorney Will Thompson. “I commend the Mercer County Sheriff’s Department for their investigation of this case and Assistant United States Attorneys Jennifer Rada Herrald and Andrew D. Isabell and our trial team for securing guilty verdicts on all counts in the superseding indictment.”
Terry Leon Blankenship is scheduled to be sentenced on May 13, 2024, and faces up to 25 years in prison for interfering with the enforcement of the federal sex trafficking statute, up to 20 years in prison for the witness tampering and conspiracy convictions, at least 5 years and up to a lifetime of supervised release, and a $750,000 fine. Laurel Blankenship is scheduled to be sentenced on May 16, 2024, and faces up to 20 years in prison, five years of supervised release and a $250,000 fine.
At the time of this offense conduct, Terry Leon Blankenship was a registered sex offender and was serving a term of federal supervised release after pleading guilty to possession of child pornography in United States District Court for the Southern District of West Virginia on December 5, 2008. He faces up to two years in prison for committing a crime while on supervised release.
Chief United States District Judge Thomas E. Johnston presided over the jury trial.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:23-cr-97.
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Federal Jury Convicts Chinese Nationals of Drug Conspiracy for Illegally Trafficking Black-Market Marijuana from Oklahoma Grow OperationRead the Press Release
Conspiracy Connected to Nearly 28 Tons of Black-Market Marijuana Shipped from Oklahoma City
OKLAHOMA CITY – A federal jury has convicted JEFF WENG, 46, of China and Brooklyn, New York, and TONG LIN, 28, of China, of drug trafficking conspiracy, announced United States Attorney Robert J. Troester.
On June 6, 2023, a federal grand jury charged Weng and Lin with conspiracy to possess with intent to distribute marijuana plants. On January 18, 2024, after a two-day trial, a federal jury deliberated about an hour before it found Weng and Lin guilty of drug conspiracy.
Between December 2022 and May 2023, evidence at trial indicated that Weng managed a marijuana grow in Wetumka, Oklahoma, and licensed by the Oklahoma Medical Marijuana Authority. Evidence showed that Lin managed matters when Weng was not present. One witness testified that, as part of their participation in the drug conspiracy, they drove delivery vans disguised as commercial vehicles, including one disguised as an “Amazon” delivery van, to the Wetumka Grow 10 to 15 times between December 2022 and March 31, 2023. The witness further testified that they picked up between 150 and 200 pounds of marijuana each time from the Wetumka Grow, and that Lin helped load the fake “Amazon” delivery van with marijuana. The witness testified they transported the marijuana to a stash house in Oklahoma City. Every Friday, the witness transported the marijuana from the stash house to a warehouse in Oklahoma City. There, they loaded more than 2,000 pounds of marijuana at a time into a semi-truck trailer, which transported the marijuana from Oklahoma to the East Coast. Over approximately seven months, the witness shipped upwards of 56,000 pounds of marijuana out of Oklahoma via semi-truck. Evidence also showed that law enforcement searched the Wetumka Grow in May 2023 and located 19,661 marijuana plants in various stages of growth, more than $100,000 of vacuum-sealed cash hidden in Weng’s closet attic space, and a firearm.
“A license under state law to grow marijuana is not a license to traffic tons of black-market marijuana inside or outside Oklahoma,” said U.S. Attorney Robert J. Troester. “Simply put, these defendants engaged in an orchestrated trafficking scheme to flood communities with illegal drugs. I commend the law enforcement and prosecutors who diligently investigated this case and held these defendants accountable.”
“Oklahoma has one of the largest illegal marijuana industries in the United States, and the FBI recognizes the devastating impact these illicit operations have on our economy and the safety of our communities,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “The convictions announced today are just a small piece of the long-running, multi-agency investigation into a prolific criminal enterprise, one that is responsible for supplying large quantities of illegal marijuana to violent gangs across the country. I want to thank our many local, state, and federal partners for their invaluable contributions to this complex investigation. We will continue to use a whole-of-government approach as we work to eradicate the damage caused by illegal marijuana cultivation and the violence it brings to our communities.”
“We cannot overstate the importance of these investigations and prosecutions. These cases send a powerful message that Oklahoma is not a safe haven for black market marijuana traffickers,” said Oklahoma Bureau of Narcotics Director, Donnie Anderson. “My agency is committed to working alongside our federal partners to identify and dismantle these trafficking organizations that try to hide and operate within Oklahoma’s medical marijuana program.”
Weng and Lin face mandatory-minimum sentences of 10 years, and up to life in federal prison and fines of up to $10,000,000 each. At sentencing, the United States will seek to forfeit the Wetumka Grow property and more than $100,000 in cash seized during the execution of a federal search warrant in connection with the case.
This case is the result of an investigation by the FBI Oklahoma City Field Office, along with assistance from the Oklahoma Bureau of Narcotics. It is also a part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorneys Wilson D. McGarry and David Nichols, Jr. are prosecuting the case.
Reference is made to public filings for additional information.
Fairfax Man Pleads Guilty to Unlawful Possession of Multiple Machine GunsRead the Press Release
ALEXANDRIA, Va. – A Fairfax man pleaded guilty today to one count of unlawful possession of a machine gun.
According to court documents, Timothy Lawrence Carll, 67, possessed four fully automatic machine guns, including an AK-style rifle, a Thompson M1 submachine gun, a Sterling submachine gun, and a PPSh-41 submachine gun. Carll also possessed four metal tubes that he knew were designed and intended for use in converting a weapon into a machine gun, specifically for use as part of Sten submachine guns of various models. Carll did not have a valid Federal Firearms License or a Special Occupational Tax when he possessed these machine guns.
Carll is scheduled to be sentenced on April 19. He faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Assistant U.S. Attorney Amanda St. Cyr is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-5.
Delaware County Man Pleads Guilty to Six Explosive IncidentsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Cushmir McBride, 24, of Yeadon, PA, entered a plea of guilty before United States District Court Judge Gene E.K. Pratter for conspiracy to maliciously damage property used in interstate commerce by means of an explosive, and aiding and abetting, as well as five separate counts alleging maliciously damaging property used in interstate commerce by means of an explosive.
In addition, on January 11, 2024, Nasser McFall, 23, of Claymont, DE, was sentenced to six and a half years in prison and three years of supervised release by United States District Court Judge Gene E.K. Pratter for the explosive incidents described below. On June 29, 2022, McFall had pleaded guilty to conspiracy to maliciously damage property used in interstate commerce by means of an explosive, and aiding and abetting, as well as four separate counts alleging maliciously damaging property used in interstate commerce by means of an explosive.
McBride and McFall, along with Kamar Thompson, 34, of Philadelphia, PA, were charged by indictment in April of 2021 for their involvement in four separate incidents in Fall 2020: the robberies of a Target and a Wawa, and attempts to rob two different Wawas, all with multiple explosive devices. McFall was also charged with setting off an explosive device at a bank in Philadelphia later that year. McBride and McFall were previously arrested and charged by complaint, and Thompson was already in federal custody facing charges in a separate case involving the possession of a firearm by a convicted felon.
On November 3, 2021, Thompson pleaded guilty to conspiracy to maliciously damage property used in interstate commerce by means of an explosive, and aiding and abetting, six counts alleging maliciously damaging property used in interstate commerce by means of an explosive, and possession of a firearm by a convicted felon.
On January 20, 2022, McBride and McFall were charged by superseding indictment, which added a charge alleging that McBride set off an explosive device at a Wells Fargo bank ATM in the Chestnut Hill section of Philadelphia on March 2, 2021. The superseding indictment also alleged that McBride, McFall, and Thompson stole over $400,000 from Capital One Bank (Target), PNC Bank (Wawa), and Wells Fargo.
As background:
On October 26, 2020, a Philadelphia police officer-involved shooting occurred in the Cobbs Creek section of Philadelphia, resulting in the death of Walter Wallace, Jr. Peaceful protests began that evening and continued into the following days, accompanied by a period of civil unrest, with widespread incidents of looting and violence in various neighborhoods in Philadelphia.
On October 28, 2020, defendants McBride, Thompson and McFall conspired to break into a Target in the Port Richmond section of Philadelphia and set off an explosive device in order to steal money from an ATM inside. The defendants had broken into a Wawa the following day, October 29, on Richmond Street in Philadelphia, where they once again set off explosive devices in order to steal money from the ATM. On October 31, 2020, the defendants broke into another Wawa in Northeast Philadelphia and detonated an explosive device. The indictment further alleged that the defendants set off an explosive device in another Wawa in Claymont, DE, on November 4, 2020, in an attempt to rob this store in the same manner. All three defendants were later charged with setting off an explosive device inside an ATM at a Wells Fargo bank in Philadelphia on December 2, 2020. McBride was then charged with setting off an explosive device at a Wells Fargo ATM in Philadelphia on March 2, 2021. The defendants were able to steal approximately $417,000 during the course of the conspiracy.
“The Department of Justice remains committed to protecting the rights of individuals to peacefully exercise their First Amendment freedoms,” said U.S. Attorney Romero. “However, violence and destruction of property like this clearly jeopardize the rights and safety of all citizens. As evidenced by McBride’s plea and McFall’s sentence, if you seek to use peaceful protests as cover to pursue your own violent criminal agenda, my office and our law enforcement partners will bring you to justice.”
“Both defendants recklessly used explosive devices at least six times, each with the potential to cause significant damage and injure countless people,” said Eric DeGree, Special Agent in charge of ATF’s Philadelphia Field Office. “ATF is committed to protecting our communities from harm and working with our law enforcement partners to disrupt violent explosives-related activity. I want to thank the Philadelphia Police Department, Delaware State Police, Upper Chichester Police Department, and the United States Attorney’s Office for their efforts in this case.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, with assistance from Delaware State Police and Upper Chichester Police Department and is being prosecuted by Assistant United States Attorney Robert E. Eckert and Special Assistant United States Attorney David Osborne.
Crow Agency meth trafficker sentenced to five years in prison for role in large conspiracy based on Crow Indian ReservationRead the Press Release
BILLINGS — A Crow Agency man who admitted to trafficking methamphetamine as part of a large, multiple-state conspiracy that was based on the Crow Indian Reservation was sentenced today to five years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Jeffrey Prettypaint, 30, pleaded guilty in September 2023 to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided. The court allowed Prettypaint to self- surrender to the U.S. Bureau of Prisons.
In court documents and in court, the government alleged that federal law enforcement, in a collaborative effort with local and tribal law enforcement, investigated a large-scale, multiple-state narcotics trafficking organization that was centered on multiple properties on the Crow Indian Reservation. The properties, including one known as Spear Siding, were a source of supply of meth for both the Crow and Northern Cheyenne Reservations and the Billings community from about January 2022 to March 2023. Prettypaint is one of approximately two dozen defendants charged in the conspiracy and was considered to be in the mid-level of the conspiracy.
The government alleged that Prettypaint was directly involved with major players above him in the drug distribution ring and could go to Spear Siding and other property to get meth. In February of 2023, Prettypaint sent the following text message to one of the main co-conspirators and suppliers:
“..we picked up 3oz this morning but we need 4oz, Hahaha, ask [co-conspirator] if he can tip me hahaha 3+3+4=10 zips in 5 days, and Tell [co-conspirator 2] may I please have an Xmas bonus or some crystal tips. Pretty sure [co-conspirator 3] n I clesring [sic] a quarter pound a day not. Everyone coming to us.”
Prettypaint also was aware of a co-conspirator having a “safe house” where they could get fentanyl and meth. In September 2022, Prettypaint told an individual that the person could buy a pound of meth from Spear Siding for $6,000. The individual went to Spear Siding and purchased a half a pound of meth for $3,000. Further, Prettypaint excelled at dealing meth and suggested in his own messages ways to make it better. In discussing expanding the business with Prettypaint, a top co-conspirator told Prettypaint to be thinking about a “few other peeps who might want to purchase or who can be great distributors,” as well other locations. Prettypaint responded that they needed to “expand to other locations and start using cash apps.” Throughout the investigation, law enforcement determined that Prettypaint was being supplied meth from sources for Spear Siding and was redistributing meth.
The U.S. Attorney’s Office prosecuted the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Cottage Grove Woman Indicted for Posting Violent Threat OnlineRead the Press Release
EUGENE, Ore.—A federal grand jury in Eugene returned an indictment Thursday charging a Cottage Grove, Oregon woman with posting a violent threat online, announced the U.S. Attorney’s Office for the District of Oregon.
Elizabeth Ballesteros West, 56, has been charged with one count of transmitting an interstate threat.
According to court documents, in late September 2023, the FBI received an anonymous tip that West was threatening coworkers on Facebook. Later, in November 2023, the FBI learned West had established an account on X (formerly known as Twitter) that she was allegedly using to post and repost memes, videos and statements containing violent messages targeting Black and Jewish people and immigrants. Several of West’s posts included what appeared to be self-produced photos of firearms including several handguns, a shotgun, and an AR-style assault rifle.
On January 3, 2024, West admitted to posting and reposting messages on X that contained hateful and violent rhetoric. West also admitted to possessing multiple shotguns and AR-15 assault rifles at her Cottage Grove residence.
One week later, on January 9, 2024, the FBI executed federal search warrants on West’s person, vehicle, and residence. They located and seized 12 handguns, 16 rifles, thousands of rounds of ammunition and firearm accessories, and a journal that appeared to contain writings and drawings that included additional hateful and violent statements. On January 12, 2024, FBI agents arrested West without incident at her workplace in Eugene.
West made her first appearance in federal court Thursday before a U.S. Magistrate Judge and was ordered detained pending further court proceedings.
This case was investigated by the FBI with assistance from the Cottage Grove Police Department, Eugene Police Department, and Lane County Sheriff’s Office. It is being prosecuted by Adam E. Delph, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Convicted Felon Sentenced to More Than 8 Years in Prison on Drug and Gun ChargesRead the Press Release
ANNISTON, Ala. – A convicted felon was sentenced on drug and gun charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge Corey L. Maze sentenced Ernesto Mayo-Huerta, 31, of Attalla, to 99 months in prison. Mayo-Huerta pleaded guilty in September 2023 to being a felon in possession of a firearm, possession with the intent to distribute a controlled substance, and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on August 1l, 2022, Alabama Law Enforcement Agency (ALEA) agents and Alabama Drug Enforcement Task Force agents executed a search warrant at a residence in Attalla, Alabama. Upon entering the residence, agents located Mayo-Huerta in the living room and immediately detained him without incident. Agents found approximately $4,489 in cash on Mayo-Huerta. In addition, $1,800 of buy money was co-mingled with the cash found on Mayo-Huerta from the “buy-walk” executed by an ALEA agent.
From one room, agents recovered large totes containing packages of marijuana; a Glock, .40 caliber semi-automatic pistol; a GSG - 5 .22 caliber rifle; a Stevens 12-gauge shotgun; a Ruger 9mm semi-automatic pistol; a Springfield Arms 16-gauge shotgun; an HW7, .22 LR caliber revolver; an Arminius, .38 special revolver; a Ruger .357 Magnum revolver; and a semi–automatic shotgun. From a second room, agents recovered a bag of marijuana; a Tactical Innovations T-15 rifle; a Mossberg .22LR caliber rifle; a Rock Island Armory .45 ACP semi-automatic pistol; an Anderson, Model AM-15 pistol; a Zip-loc bag containing $13,792 in cash; and a fanny pack containing $14,912 in cash. In total, agents recovered $33,193 dollars in cash, 14 firearms, and 57.5 pounds of marijuana from the residence.
The ATF investigated the case along with ALEA SBI, ADETF Region F, Etowah County Sheriff’s Office and Etowah County Drug Enforcement Unit. Assistant U.S. Attorney Darius C. Greene prosecuted the case.
Columbia Man Involved in Gun and Drug Trafficking Sentenced to Federal PrisonRead the Press Release
COLUMBIA, S.C. — Justin Washington, 24, of Columbia, was sentenced to more than three years in federal prison after pleading guilty to Possession of Stolen Firearms and Possession of a Firearm in Relation to a Drug Trafficking Offense.
Evidence presented to the court showed that on Oct. 22, 2022, deputies of the Richland County Sheriff’s Department executed a search warrant at Washington’s residence based on his involvement in multiple car break-ins throughout Richland County. During the search warrant, deputies recovered four firearms, 9mm and 300 blackout ammunition, multiple gun magazines, over $4,300 dollars in cash, more than 220 grams of marijuana, a window punch, and several tools related to breaking into motor vehicles.
After receiving his Miranda rights, Washington admitted to his possession of the items recovered by law enforcement and stated to law enforcement that he stole the firearms in his possession. He also told law enforcement that he would often sell the firearms he stole from motor vehicles.
During this incident, Washington was on parole for Breaking into a Motor Vehicle, a felony which prohibited him from possessing firearms and ammunition.
United States District Judge Cameron McGowan Currie sentenced Washington to 90 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Richland County Sheriff’s Department, the City of Columbia Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorneys Lamar J. Fyall, Elle Klein, and Elizabeth Major are prosecuting the case.
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Cedar Rapids Man Sentenced to over Nine Years in Federal Prison for Being a Prohibited Person in Possession of a FirearmRead the Press Release
A prohibited person who possessed a firearm was sentenced on January 18, 2024, to 110 months in federal prison.
Ethan Porter, age 33, of Cedar Rapids, received the sentence after a July 11, 2023, guilty plea to one count of being a prohibited person in possession of a firearm. At the plea hearing, Porter admitted that, in June 2022, he possessed a Taurus pistol while being an unlawful drug user and after having been convicted of three felonies and a misdemeanor crime of domestic violence.
Porter was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Porter was sentenced to 110 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the High Risk Unit of the Sixth Judicial District Department of Correctional Services, the Cedar Rapids Police Department, the Iowa Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 23-6.
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CEO of Crypto Investment Platform Charged in Multi-Million Dollar International Fraud SchemeRead the Press Release
This morning, Horst Jicha, a German national, will be arraigned at the federal courthouse in Brooklyn on an indictment charging him with securities fraud and conspiracies to commit securities fraud, wire fraud, and money laundering for his role in a cryptocurrency scheme called USI Tech. Jicha was arrested, and the charges against him were unsealed when he entered the United States on December 23, 2023 attempting to vacation in Miami, Florida.
Breon Peace, United States Attorney for the Eastern District of New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, in the early days of crypto, the defendant deployed a multilevel marketing scheme to defraud U.S. investors excited about the crypto market,” stated United States Attorney Peace. “Although the defendant did not return to the United States for half a decade, my Office and the FBI worked to ensure that when he did, he would be brought to justice. Our Office is committed to prosecuting any criminal actor defrauding U.S. investors for their own gain, regardless of where in the world they may come from.”
“Too often honest investors fall victim to schemes surrounding emerging financial opportunities. Horst Jicha allegedly advertised a platform that made cryptocurrency investing simple and more accessible to investors, with guaranteed returns. In reality the platform was just a facade, and when questions arose, Jicha stole millions of his investors’ money and fled the country. No matter how long it takes, the FBI will continue to bring to justice criminal financial fraudsters,” stated FBI Assistant Director-in-Charge Smith.
As alleged in the indictment, USI Tech was an online platform that began in Europe and purported to make cryptocurrency investments easy and accessible to the average retail investor. In reality, it was a multilevel marketing scheme that relied on investors recruiting other investors below them to buy various purported cryptocurrency investments. Jicha was one of USI Tech’s founders and its Chief Executive Officer. In 2017, Jicha brought USI Tech to the United States and aggressively marketed it to U.S. retailers on social media and through in-person presentations in which he falsely guaranteed high returns on investments and made false claims about the legality of the platform’s investment offerings.
In early 2018, after USI Tech faced regulatory scrutiny in the United States, it ceased all U.S. operations overnight, leaving investors with no ability to access their money and resulting in millions of dollars in losses. Much of the missing money – Ether and Bitcoin valued at approximately $150 million as of the date of his arrest – was sent to cryptocurrency deposit addresses controlled by Jicha after USI Tech ceased operations. Jicha had not returned to the United States for over five years, until the date of his arrest.
If you believe that you have been a victim of this crime, please contact [email protected].
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud and General Crimes Sections. Assistant United States Attorneys Kaitlin Farrell, Genny Ngai, and Daniel Marcus are in charge of the prosecution with assistance from Paralegal Specialist Liam McNett.
Defendant:
HORST JICHA
Age: 64
Germany
E.D.N.Y. Docket No. 23-CR-342 (OEM)CEO Sentenced for Transnational “Cherry-Picking” Scheme Involving Foreign Exchange and Cryptocurrency Futures ContractsRead the Press Release
A chief executive officer of an investment firm was sentenced today to two years in prison followed by one year and six months of home confinement and ordered to forfeit approximately $1.6 million for a “cherry-picking” scheme, in which he fraudulently misappropriated profitable trades to himself and saddled his investors with losses.
According to court documents, Peter Kambolin, 48, a U.S.-Russian national of Sunny Isles Beach, Florida, was the owner and chief executive officer of Systematic Alpha Management LLC (SAM), an investment firm that Kambolin marketed as offering algorithmic trading strategies involving futures contracts. Established in 2007, by 2011, SAM had more than $720 million in assets under management. Between January 2019 and November 2021, Kambolin, who at the time was a commodity trading advisor and a commodity pool operator, engaged in a cherry-picking scheme in which he fraudulently allocated profits and losses from futures trades in a manner designed to benefit his own accounts unfairly at the expense of his clients. Kambolin also misrepresented to his clients that SAM employed trading strategies focused on cryptocurrency futures contracts and foreign exchange futures contracts, when in reality, approximately half of Kambolin’s trading in each pool involved equity index futures contracts. In doing so, Kambolin defrauded investors located in the United States and abroad by, among other things, depriving them of profitable trades. Kambolin used the proceeds of the scheme to fund personal expenses, including rent for a beachfront apartment, and transferred proceeds to foreign bank accounts his co-conspirator controlled in Belarus and Dominica.
During the relevant period, Kambolin executed trades for pool participants together with trades he executed on behalf of his proprietary accounts, and fraudulently allocated the profits and losses of the trades to benefit his own accounts.
Kambolin pleaded guilty on Oct. 11, 2023, to one count of conspiracy to commit commodities fraud.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and Assistant Inspector General for Investigations Shimon R. Richmond of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement.
The FDIC-OIG investigated the case. The Commodity Futures Trading Commission previously charged Kambolin and SAM by complaint.
Trial Attorney Matt Kahn of the Criminal Division’s Fraud Section prosecuted the case.
CEO of Cryptocurrency Ponzi Scheme “IcomTech” Sentenced to Five-Year Prison TermRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MARCO RUIZ OCHOA was sentenced principally to five years in prison for his role in promoting a large-scale cryptocurrency Ponzi scheme known as IcomTech. OCHOA was sentenced today before U.S. District Judge Jennifer L. Rochon. On September 27, 2023, OCHOA pled guilty to one count of conspiracy to commit wire fraud.
U.S. Attorney Damian Williams said: “Ochoa took advantage of the hype around cryptocurrency to con unsuspecting victims into investing in the IcomTech pyramid scheme. This significant sentence sends a message to anyone considering following in his footsteps: that path leads to serious prison time.”
According to the Indictment and statements made in court:
DAVID CARMONA started IcomTech in 2018, and IcomTech promotional materials put OCHOA forward as IcomTech’s CEO until 2019, when a new CEO replaced him. IcomTech was a purported cryptocurrency mining and trading company that promised to earn its victim-investors (“Victims”) profits in exchange for their purchase of purported cryptocurrency-related investment products. OCHOA and the other promoters of IcomTech, including his co-defendants CARMONA, JUAN ARELLANO, MOSES VALDEZ, and DAVID BREND, falsely promised their respective Victims, among other things, that profits from the company’s cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments. In reality, IcomTech did not engage in cryptocurrency trading or mining for its Investors, and OCHOA and IcomTech’s other promoters used Victim funds to pay other Victims to further promote the schemes and to enrich themselves.
IcomTech promoters, including OCHOA, traveled throughout the United States and internationally, where they hosted lavish expos and small community presentations aimed at luring Victims to invest in the schemes, including in the Southern District of New York. During larger-scale events, IcomTech promoters presented on purported investment products and the compensation plan, encouraged Victims to invest as a means of achieving financial freedom, and boasted about the amount of money they were earning. IcomTech promoters often showed up at larger-scale events in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from IcomTech. The atmosphere of these events was festive and designed to generate excitement about the schemes.
Victims invested in IcomTech by purchasing investment products from promoters using cash, checks, wire transfers, and actual cryptocurrency. Following a Victim’s investment, a Victim would be provided with access to an online portal where the Victim could monitor the purported returns. While Victims saw “profits” accumulate on the online portal, most Victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments. By contrast, IcomTech’s promoters, including OCHOA, siphoned off, in some cases, hundreds of thousands of dollars in Victim funds, which they withdrew as cash, spent on IcomTech promotional expenses, and used for personal expenditures such as luxury goods and real estate.
At least as early as August 2018, Victims who attempted to withdraw money from their online portal accounts had difficulty doing so and, when they complained to promoters, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all. Despite these complaints, IcomTech promoters, including OCHOA, continued to promote IcomTech and accept Victims’ investments. As complaints mounted, IcomTech began offering proprietary crypto tokens for sale as a means of injecting liquidity into IcomTech. Promoters of the schemes claimed that these tokens, known as “Icoms,” would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services. This was false. In reality, “Icoms” were essentially worthless and resulted in further financial loss to Victims. By in or about the end of 2019, IcomTech stopped making payments to Victims and IcomTech collapsed.
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In addition to the prison term, OCHOA, 35, of Nashua, New Hampshire, was sentenced to two years of supervised release and ordered to forfeit $914,000 in criminal proceeds.
Mr. Williams praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force. Mr. Williams also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance.
If you believe you are a victim of the IcomTech fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator is available here.
The case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin A. Gianforti, Michael Maimin, Josiah Pertz, and Cecilia E. Vogel are in charge of the prosecution.
Broken Bow Resident Pleads Guilty to MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Devon Leroy Battiest, age 43, of Broken Bow, Oklahoma, entered a guilty plea to an Information charging him with Murder in Indian County—Second Degree.
The Information alleged that Battiest unlawfully killed the victim with malice aforethought. According to investigators, on May 6, 2023, Battiest entered a Broken Bow residence armed with a firearm. Battiest confronted the victim, who was a guest at the house, and shot the victim multiple times.
The crime occurred in McCurtain County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Federal Bureau of Investigation, the Broken Bow Police Department, and the Choctaw Nation Lighthorse Tribal Police.
The Honorable Gerald Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. The Battiest was remanded to the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Richard J. Lorenz represented the United States.
Assistant United States Attorney Nicole DuPré Honored as 2023 AUSA of the Year by Homeland Security InvestigationsRead the Press Release
GREENSBORO – Assistant United States Attorney (AUSA) Nicole DuPré of the Middle District of North Carolina has been honored as the 2023 Assistant United States Attorney of the Year for the state of North Carolina by Homeland Security Investigations (HSI), announced United States Attorney Sandra J. Hairston.
Each year, the HSI Charlotte regional office recognizes the outstanding work and partnerships of federal, state, and local law enforcement officers and prosecutors from North Carolina and South Carolina.
AUSA DuPré received the award in recognition of her work on the investigation and prosecution of Chester Fletcher Wallace. On July 14, 2023, after a four-day trial, Wallace was convicted of conspiracy to commit sex trafficking by force, threats of force, fraud, and coercion, and five counts of using force, threats of force, fraud, and coercion to cause five victims to engage in commercial sex acts. Wallace was sentenced in November 2023 to six concurrent life terms of imprisonment and ordered to pay restitution in the amount of $914,401.07.
“AUSA DuPré, co-counsel Tanner Kroeger (currently a trial attorney with the National Security Division of the Department of Justice), and the agents investigating this case worked tirelessly to ensure that the victims received justice,” said U. S. Attorney Hairston. “This award is extremely well-deserved and recognizes AUSA DuPré’s commitment to fighting human trafficking. This heinous crime targets the most vulnerable in our society, and our office will continue to fight against individuals who exploit others for profit.”
Each year, the Department of Justice recognizes National Human Trafficking Awareness month in January, to better educate the public about the signs of human trafficking and bring awareness to the victims. For more information about the signs of human trafficking or to get help for you or someone you know who may be a victim of human trafficking, visit https://www.dhs.gov/blue-campaign/about-blue-campaign.
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Arkansas Woman Charged with Tax Evasion and Failing to File Tax ReturnsRead the Press Release
A federal grand jury in Fort Smith, Arkansas, returned an indictment yesterday charging an Arkansas woman with evading her federal income taxes and failing to file income tax returns.
According to the indictment, Kristine J. Collins, of Centerton, did not file individual income tax returns for 2017 through 2022, despite earning sufficient income requiring her to do so. Collins was allegedly employed by a company as a senior manager in asset protection, responsible for protecting the company against internal fraud and theft. The indictment alleges that Collins supplied her employer with employee withholding certificates (Forms W-4) falsely claiming she was exempt from federal income tax withholding each year. In August 2022, when questioned by IRS special agents conducting a criminal investigation into her failure to file tax returns, she allegedly made several false statements. In approximately March 2023, Collins allegedly filed another false Form W-4 claiming exemption from income tax withholding for 2023. During the years covered in the indictment, Collins allegedly earned gross income in excess of $750,000.
If convicted, Collins faces a maximum penalty of five years in prison on each tax evasion count and one year in prison for each tax return count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney David Clay Fowlkes for the Western District of Arkansas made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Andres Chinchilla and Assistant Chief Greg Tortella of the Justice Department’s Tax Division and Assistant U.S. Attorney Carly Marshall for the Western District of Arkansas are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Arkansas Resident Sentenced for Federal Drug CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Raylon Sharrod Triplett-Armstrong, age 33, of Fort Smith, Arkansas, was sentenced to 63 months in prison for one count of possession with intent to distribute fentanyl.
The charges arose from investigations by the Drug Enforcement Agency (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the McAlester Police Department.
On February 22, 2023, Triplett-Armstrong pleaded guilty to one count of possession with the intent to distribute 40 grams or more of a mixture or substance that contained a detectable amount of fentanyl. According to investigators, Triplett-Armstrong traveled from Fort Smith, Arkansas, to McAlester, Oklahoma, intending to conduct a drug transaction. When Triplett-Armstrong arrived in McAlester, officers initiated a traffic stop and a search of the vehicle revealed over 900 counterfeit oxycodone pills containing a detectable amount of fentanyl.
“The illegal distribution of counterfeit pills containing fentanyl poses a tremendous danger to our communities,” said United States Attorney Christopher J. Wilson. “The U.S. Attorney’s Office is committed to working with our local, state, tribal, and federal law enforcement partners to vigorously investigate and prosecute offenders.”
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings. Triplett-Armstrong will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Ryan Bondura represented the United States.
Alleged Fraudster Extradited from Brazil to Face New ChargesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that JOHN VOLOSHIN, also known as “Josh Thomas,” 68, formerly of New Haven and Woodbridge, has been extradited to the U.S. from Brazil to face fraud, identity theft, and money laundering offenses.
As alleged in court documents and statements made in court, in May 2012, Voloshin was sentenced in Hartford federal court to 33 months of imprisonment and three years of supervised release for operating multiple fraud schemes that caused losses of more than $1.5 million to individuals and lenders. He was released from prison in May 2014. In November 2014, he was sentenced to an additional nine months of imprisonment for violating the terms and conditions of his federal supervised release for repeatedly lying to his supervising probation officer by concocting a bogus job for a real estate concern in London. He was released from prison in June 2015. In the fall of 2015, Voloshin engaged in another fraud scheme by soliciting money from individuals and falsely representing that the money would be fully invested to generate very high returns. In November 2017, he was sentenced to 27 months of imprisonment for the offense and for violating his supervised release. He was also ordered to pay $275,000 in restitution, in addition to his restitution obligation from his 2012 conviction. He was released from prison in May 2018.
On September 23, 2020, a federal grand jury in New Haven returned an indictment charging Voloshin with seven counts of bank fraud, two counts of aggravated identity theft, and two counts of money laundering. The indictment, which was unsealed today, alleges that between January and April 2019, Voloshin defrauded a company in Bloomfield for which he provided accounting and tax preparation services to individuals and companies. Voloshin stole blank checks for both the company’s business account and the company owner’s personal account, forged the owner’s name on the checks, and negotiated the checks for his own benefit. Voloshin also stole and negotiated checks and money orders that were written out as payment by third parties to the company. As part of the scheme, Voloshin incorporated an entity in Wyoming with a name very similar to that of the company, opened a bank account in the name of the sham company, deposited misappropriated checks into the account, and used the stolen funds for his own benefit.
Voloshin was arrested on July 14, 2021, in Sao Paulo, Brazil, and has been in custody since that time. He appeared today before U.S. Magistrate Judge Thomas O. Farrish in Hartford and pleaded not guilty to the new charges against him.
Bank fraud carries a maximum term of imprisonment of 30 years on each count, aggravated identity theft carries a mandatory two-year term of imprisonment on each count, and money laundering carries a maximum term of imprisonment of 20 years on each count. Voloshin also faces additional penalties if he is found to have violated the conditions of his supervised release from his 2017 conviction.
U.S. Attorney Avery stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation. U.S. Attorney Avery thanked Interpol and Brazilian authorities for their assistance in apprehending this defendant, and the U.S. Department of Justice’s Office of International Affairs for coordinating the extradition proceedings in this matter. The case is being prosecuted by Assistant U.S. Attorneys David T. Huang and Sean P. Mahard.
Thursday 18 January 2024
Woman Sentenced for Conspiracy to Murder Her MotherRead the Press Release
An Illinois woman was sentenced yesterday to 26 years in prison for her role in a conspiracy to murder her mother while they vacationed in Bali, Indonesia, in August 2014.
According to court documents, Heather L. Mack, 28, originally from Chicago, admitted in a plea agreement that she and her boyfriend, Tommy Schaefer, conspired to kill Mack’s mother while Mack and her mother vacationed in Bali. Mack arranged for Schaefer to travel to Bali using her mother’s credit card. After Schaefer arrived, Mack and Schaefer exchanged a series of text messages about how and when to kill Mack’s mother, which included a discussion about suffocating or beating the victim. Shortly after these text messages were exchanged, on Aug. 12, 2014, Schaefer entered the victim’s hotel room and, while Mack was present, brutally beat and killed the victim. Mack and Schaefer then placed the victim’s body into a suitcase and tried to leave the hotel in a taxi. When the driver of the taxi refused to accept their fare, Mack and Schaefer fled the hotel and abandoned the suitcase containing the victim’s body in the taxicab. Mack and Schaefer were arrested by Indonesian police the day after the murder at another hotel in Bali.
“Heather Mack planned to violently murder her own mother while on vacation in Bali,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “In Bali, Mack stood by while her mother was savagely beaten to death and then callously and unsuccessfully tried to dispose of her mother’s body. This significant sentence holds the defendant to account for this heinous crime. The department will continue to pursue justice for Americans, both at home and abroad.”
“The successful prosecution of the defendant’s heinous crime was the result of exhaustive investigative work by law enforcement in the United States and Indonesia,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “The sentence imposed sends a message that the U.S. justice system remains a powerful tool to hold accountable those who harm American citizens abroad.”
“The FBI works diligently with its international law enforcement partners to bring perpetrators of violent crime to justice and closure to victims’ families,” said Assistant Director Michael Nordwall of the FBI's Criminal Investigative Division. “The sentencing demonstrates the FBI’s commitment to investigating violent crime—no matter how long or how far it takes us.”
“This case is the result of the FBI’s unwavering commitment to seeking justice for all Americans throughout the world,” said Special Agent in Charge Robert W. “Wes” Wheeler Jr. of the FBI Chicago Field Office. “We will never stop working with our partners to hold violent offenders accountable, no matter where in the world they commit their crimes.”
In 2015, Mack and Schaefer were convicted in Indonesia of local criminal charges related to the murder. Mack was sentenced to 10 years in prison and released after serving seven years. Schaefer was sentenced to 18 years in prison and currently remains imprisoned in Indonesia.
In November 2021, upon arrival in the United States, Mack was arrested on U.S. federal charges relating to the murder. Schaefer was also charged in the U.S. indictment, and those charges remain pending against him. Mack pleaded guilty on June 16, 2023, to one count of conspiracy to kill a U.S. national.
The FBI Chicago Field Office investigated the case, with valuable assistance from the Justice Department’s Office of International Affairs and the FBI Legal Attaché Office in Jakarta, Indonesia.
Senior Trial Attorney Frank G. Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Ann Marie E. Ursini for the Northern District of Illinois prosecuted the case.
Venice Man Charged with Threatening to Commit A Mass Casualty Event and Unlawful Possession of A SilencerRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Alexander Lightner (26, Venice, FL) with interstate transmission of a threat to injure and unlawful possession of a silencer. If convicted on all counts, Lightner faces a maximum penalty of 15 years in federal prison.
According to court filings, on December 29, 2023, Lightner made the following threats on an internet messaging platform indicating his intention to carry out a mass shooting: “2024 there shall be saints u fuq”; “Highscore shall be defeated”; “I’ll delete this, but I say to you there is no surrender only death. Only purpose”; “When my @ says last seen a week ago remove me from everything.”; “It’s called a .308 black tip.”; and “Those that know me know. It’s over, you have not seen the wrath of the Aryan that has no purpose left.” In the racially or ethnically motivated violent extremist (“RMVE”) community, a “saint” is an individual who commits an act of mass violence in furtherance of RMVE ideology, and the term “high score” refers to the death toll amassed by an attacker, or saint, who commits an act of mass violence.
Federal law enforcement subsequently executed a search warrant at Lightner’s residence. During the search, agents recovered an unregistered firearm silencer, ammunition, and multiple firearms from Lightner’s bedroom.
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 Federal Bureau of Investigation’s Joint Terrorism Task Force, with valuable assistance from the Florida Department of Law Enforcement, the Sarasota Police Department, and the Sarasota County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Lindsey Schmidt.
Van Zandt County woman sentenced to federal prison for defrauding elderlyRead the Press Release
SHERMAN, Texas – A Wills Point woman has been sentenced to federal prison for fraud violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Lisa Lynn Smith, 62, pleaded guilty to wire fraud and was sentenced to 20 months in federal prison today by U.S. District Judge Amos Mazzant. Smith was also ordered to pay restitution in the amount of $47,236.94 to her elderly victim.
According to information presented in court, Smith carried out a scheme to defraud an elderly Plano man by telling him lies about urgent personal and family expenses that she was facing. Smith also convinced the victim that she was going to receive a lawsuit settlement for over $2.5 million, and that she would use the money to pay the victim back for the money that he was giving to her. The victim would provide funds to Smith by various means including allowing Smith access to a credit card, which she used for various purposes such as repeatedly renting cars for her family members. In fact, Smith’s lawsuit paid nothing close to this amount and Smith was using the money for personal and family expenses that she did not disclose to the victim.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case was investigated by the Federal Bureau of Investigation’s Frisco Resident Agency and prosecuted by Assistant U.S. attorneys in the Plano office.
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U.S. Attorney’s Office Reports over $169 Million in Civil and Criminal Collections in Fiscal Year 2023Read the Press Release
SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert announced today that criminal and civil matters handled by the Eastern District of California in Fiscal Year 2023 resulted in collections totaling $169,209,799.
Of this amount, the Eastern District of California directly collected $52,209,799. This included more than $11.6 million in criminal actions and more than $40.5 million in civil actions. Additionally, the Eastern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,181,933 in cases pursued jointly by these offices. Of this amount, more than $32,000 was collected in criminal actions and more than $2.1 million was collected in civil actions.
Separately, the Department of Justice collected $117 million in a matter handled by the Eastern District of California with assistance from DOJ’s Commercial Litigation Branch. In April 2023, the Pacific Gas & Electric Corporation paid $117 million to the Department of Justice pursuant to a settlement agreement previously reached in PG&E’s bankruptcy proceedings. This agreement required PG&E to compensate the United States for damages caused by multiple fires occurring within the Eastern District of California prior to the bankruptcy, including the deadly 2018 Camp Fire.
“Thanks go to the Assistant U.S. Attorneys and staff in this office whose collection efforts protect the residents of the Eastern District of California and safeguard precious taxpayer resources,” said U.S. Attorney Talbert. “We are also thankful to our DOJ and law enforcement partners who make much of this work possible. Together we remain committed to protecting the public, vigorously pursuing funds that rightfully belong to U.S. taxpayers, and seeking compensation for crime victims.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Eastern District of California, working with partner agencies and divisions, collected more than $8.6 million in asset forfeiture actions in FY 2023. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.