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26 February 2024
Evansville Felon Charged with Possession of a Ghost Gun and Dozens of “Glock Switches” Made Using a 3D PrinterRead the Press Release
EVANSVILLE- A federal grand jury has returned an indictment charging Marquel D. Payne, 39, of Evansville, with one count of possession of a firearm as a convicted felon and one count of possession of a machinegun.
According to the criminal complaint, on January 31, 2024, Evansville Police Department officers observed Payne in possession of a 3D printer while conducting surveillance near his residence. Investigators had received information that Payne was manufacturing machine gun parts using a 3D printer before the surveillance began.
Investigators obtained search warrants for Payne’s residence and other locations he controlled. During the searches, investigators found approximately 60 plastic machine gun conversion devices, a 9mm personally made handgun, also known as a “ghost gun” due to its lack of any traceable serial numbering, an AR-15 rifle, a 3D printer, plastic printing filament, a 3D printed firearm silencer, and 9mm caliber ammunition.
Machinegun conversion devices sometimes called “Glock switches” or “auto-sears” are devices that convert ordinary semiautomatic firearms into fully automatic machineguns. Machinegun conversion devices are themselves considered machineguns under federal law, even when not installed, and are illegal for individuals to produce, possess, or sell. The hand grip of the 9mm ghost gun was allegedly produced by Payne using a 3D printer. Other parts of the ghost gun were produced in Pennsylvania.
At the time of his arrest, Payne had been previously convicted of numerous felonies, including escape, carrying a handgun without a license, and criminal recklessness while armed with a deadly weapon. These prior felony convictions prohibit Payne from ever again legally possessing a firearm.
“Getting illegal machinegun conversion devices off our streets is a critical public safety priority. Fully automatic weapons and untraceable ‘ghost guns’ pose a serious danger to our communities, especially when they are in the hands of people who have no lawful business possessing any firearm,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “This prosecution is the result of quick and impactful investigative work by our outstanding partners at the Evansville-Vanderburgh Crime Gun Intelligence Center. Together we are committed to saving lives and reducing gun violence by combining intelligence and resources to investigate and prosecute dangerous offenders.”
“Unfortunately, these deadly conversion devices continue to show up in our communities,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “U.S. law has long recognized that automatic weapons pose a special risk to public safety, both through the sheer volume of bullets fired and the likelihood that innocent bystanders will be injured or killed. Combine that with an untraceable firearm and an unregistered silencer in the hands of a convicted felon, and it is clear that this individual is solely interested in feeding violence in southern Indiana. ATF will continue to work with our law enforcement partners to hold accountable those who use and distribute machine gun conversion devices.”
“My office applied for and was awarded a $700,000 federal grant to form the crime gun intelligence center where our mission is clear: to work with our state and federal partners to combat the rising crime in Vanderburgh County. We are now seeing the fruits of our labor,” said Prosecutor Diana Moers. “My office and our state and federal partners will stop at nothing to identify and prosecute any who seek to commit violent crimes in our community - this case is a result of teamwork and, with our agencies working together, we expect more cases like this: we are ahead of criminal activity and not simply reacting. Anyone planning to break the law in Vanderburgh County should swiftly reconsider.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Evansville Crime Gun Intelligence Center (CGIC), the Evansville Police Department, and Vanderburgh County Sheriff’s Office investigated this case. If convicted, Payne faces up to 15 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Myers thanked Assistant United States Attorney Todd S. Shellenbarger, who is prosecuting this case.
In October 2023, the Vanderburgh County Prosecutor’s Office, Sheriff’s Office, and Evansville Police Department secured a nearly $700,000 federal grant to establish a Crime Gun Intelligence Center. The goal of the Evansville-Vanderburgh Crime Gun Intelligence Center is to quickly identify and reduce the amount of gun crime in the Evansville-Vanderburgh County area by providing intelligence, analysis, and resources between agencies for the swift identification and apprehension of suspected armed criminals.
The Department of Justice’s National Ghost Gun Initiative was launched in February 2022 in response to the proliferation of ghost guns in our communities, and the growing number of criminals who unlawfully use or possess these untraceable weapons. The Attorney General directed U.S. Attorney’s Offices to train a national cadre of prosecutors as experts to lead investigations and prosecutions of crimes involving ghost guns. These ghost gun coordinators will also share investigation and prosecution tools with other prosecutors and law enforcement officers. As part of the initiative, the U.S. Attorney’s Office for the Southern District of Indiana will focus its investigation and prosecution resources on combatting the illegal possession and use of ghost guns.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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District Man Sentenced to 37 Months in Prison for Federal Firearms OffenseRead the Press Release
WASHINGTON – Maurice Devonte Beckham, 22, of Washington, D.C., was sentenced today to 37 months in prison for illegally possessing a loaded firearm in Northeast Washington, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Beckham pleaded guilty on November 20, 2023, in the U.S. District Court for the District of Columbia, to one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. He was sentenced by the Honorable Reggie B. Walton. Following his prison term, Beckham will serve three years of supervised release.
According to court documents, shortly after 2 a.m. on January 30, 2023, MPD officers were on patrol in the 1100 block of Raum St. Northeast when they observed Beckham walk quickly toward a running Honda CR-V and enter its driver’s seat. The officers recognized Beckham from prior interactions and knew him to have outstanding arrest warrants.
An officer approached the Honda—which was later determined to have been stolen—and Beckham accelerated, nearly striking the officer, and crashed into an occupied, marked police cruiser and a citizen’s parked vehicle. Officers opened the driver’s door and removed Beckham. Beckham attempted to flee on foot. Officers apprehended Beckham and placed him in handcuffs. They then observed in plain view on the driver’s seat floorboard—the same area from which they had just removed Beckham—a semi-automatic firearm. The recovered weapon was a Micro Draco 7.62x39mm caliber firearm, with one round in the chamber and 20 rounds in its 30-round capacity magazine.
Beckham has remained in custody since his arrest.
At the time of the offense, Beckham was on probation in the Superior Court of the District of Columbia for unauthorized use of a vehicle, failure to appear in court, and other charges. As a result of his arrest in this case, Superior Court judge Heidi Pasichow revoked Beckham’s probation on June 23, 2023, and sentenced him to a 15-month prison term. The 37-month sentence imposed today will run consecutively to the Superior Court sentence, for a total term of 52 months’ imprisonment.
Federal law prohibits Beckham from possessing a firearm because of his prior conviction for unauthorized use of a vehicle, which is a crime punishable by imprisonment for a term exceeding one year.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of the officers of the Metropolitan Police Department. Valuable assistance was provided by the FBI’s Washington Field Office.
The case was investigated and prosecuted by Assistant U.S. Attorney Paul V. Courtney.
Des Moines Man—Owner of Wicked Imagery—Arrested on Federal Complaint for Sexual Exploitation of a Child and Possession of Child Pornography; Investigators Request Public’s AssistanceRead the Press Release
DES MOINES, Iowa – A Des Moines man was arrested on Wednesday, February 21, 2024, and made his initial appearance before a United States Magistrate Judge in the United States District Court for the Southern District of Iowa. Jeffrey Walter Gray, 61, is charged in a criminal complaint filed in the Southern District of Iowa with Sexual Exploitation of a Child (and Attempted Sexual Exploitation of a Child) and Possession of Child Pornography.
According to the allegations in the unsealed complaint, Gray, from as early as approximately 2005 to at least approximately 2016, used minors to produce child sexual abuse material. Some of this material was allegedly created at the photography business Gray owned and operated in the Des Moines area—Wicked Imagery. The material included images from hidden cameras placed in the changing rooms at Wicked Imagery to capture videos and/or images of minor children undressing. In November 2023, investigators recovered from Gray’s residence a hard drive which was later determined to contain child sexual abuse material.
To date, investigators have identified approximately fifteen minor victims depicted in child sexual abuse material seized from Gray’s residence. Investigators request the public’s assistance in identifying other minors. If you believe that you or your minor children may have been victimized by Gray, or if you have information relevant to this investigation, please visit www.fbi.gov/JeffreyGray.WickedImagery or email [email protected].
This case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation is investigating the case with the assistance of the Des Moines Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Colombian National Pleads Guilty for Illegal Re-EntryRead the Press Release
NEW ORLEANS – JEAN PAUL SABOGAL-ANGARITA, age 27, plead guilty on February 21, 2024 for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to court document, JEAN PAUL SABOGAL-ANGARITA (“SABOGAL-ANGARITA”) is a citizen of Columbia and has no legal right to be in the United States. On February 18, 2023, SABOGAL-ANGARITA was arrested by Tangipahoa Parish law enforcement officials in Tickfaw, Louisiana for allegedly being involved in a group stealing cell phones during Mardi Gras in New Orleans. SABOGAL-ANGARITA was arrested by federal authorities on June 21, 2023 for the illegal re-entry offense. Research of federal government databases revealed that SABOGAL-ANGARITA had been previously removed from Miami, Florida on September 21, 2016, pursuant to a removal order. He knowingly reentered the U.S. after being removed and was found to be present in the Eastern District of Louisiana without the permission of either the Attorney General of the United States or the Secretary of Homeland Security.
SABOGAL-ANGARITA faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Chautauqua County man charged with attempted production of child pornographyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Jose Perez, 39, of Celeron, NY, was arrested and charged by criminal complaint with attempted production of child pornography and possession of child pornography, which carry a maximum penalty of 15 years in prison and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that on September 3, 2022, Homeland Security Investigations received a tip from the National Center for Missing and Exploited Children that Perez uploaded a file a suspected child pornography. On December 15, 2022, HSI executed a federal search warrant at Perez’s residence, seizing computers, a cellular telephone, and electronic storage devices, including a thumb drive, which contained two video files that appeared to be taken from a videocam located in Perez’s bathroom. One of the files included video of a naked minor victim who does not appear to be aware that the camera is present. In addition, the thumb drive contained 17,839 image files that appeared to be taken from the same bathroom videocam and included naked images of the minor victim. Images and videos of child pornography were also found on Perez’s cell phone.
The complaint is the result of an investigation by the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
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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Charleston Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Clyde Anderson Jr., 44, of Charleston, pleaded guilty today to possession with intent to distribute fentanyl and methamphetamine.
According to court documents and statements made in court, on September 12, 2022, law enforcement officers encountered Anderson while responding to a domestic disturbance complaint at a Renaissance Circle apartment in Charleston. Anderson admitted that he consented to a search of a small bag he was carrying. Officers found a cylinder in the bag containing approximately 9 grams of a substance containing fentanyl and 13 grams of methamphetamine. Anderson admitted that he intended to distribute the controlled substances. Anderson further admitted that he also possessed a Taurus model PT738 .380-caliber pistol that he handed over to the officers.
Anderson is scheduled to be sentenced on June 10, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Troy D. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-120.
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Canyon Lake Tax Preparer Sentenced for Submitting False Tax ReturnsRead the Press Release
EL PASO, Texas – A Canyon Lake woman was sentenced in a federal court in El Paso to 24 months in prison for aiding and assisting in the preparation of a false tax return.
According to court documents, Dawn Marie Munoz, 54, operated a tax preparation business, filing IRS forms for an organization and several of its members. In preparing and submitting joint IRS Form 1040 individual income tax returns for her clients, Munoz materially underreported her clients’ income paid as stipends from the organization.
Munoz was arrested April 12, 2022 and pleaded guilty May 10, 2023 to one count of a 16-count indictment. In addition to her imprisonment, Munoz was also ordered to pay $227,197.65 to four victims.
“Munoz was an experienced tax preparer who engaged in fraudulent business practices and took advantage of the longtime clients who trusted her,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This investigation by our law enforcement partners at FBI El Paso and IRS Criminal Investigation, along with the punishment delivered by the judge, shows that anyone who tries to undermine our tax system risks prosecution with serious penalties.”
“The defendant took advantage of her position to personally enrich herself at the expense of the citizens of El Paso,” said Special Agent in Charge John Morales for the FBI El Paso Divison. “The public can be rest assured the defendant was held accountable for the crimes she committed. The FBI thank our partners at IRS Criminal Investigation for assisting in the investigation to stop Munoz from stealing from hard working employees for her own greed.”
“Munoz lied and stole from her clients in ways that should make everyone question and double check every aspect of their tax returns this year. She prepared fraudulent returns for clients, convinced them to write checks to pay money to the IRS that they didn’t owe, stole the money, and filed false returns herself to cover her tracks,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s Houston Field Office. “This level of deceit, on the part of Munoz, may likely reverberate far beyond West Texas.”
The FBI and IRS CI investigated the case.
Assistant U.S. Attorney Mallory Rasmussen prosecuted the case.
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California Man Pleads Guilty to Role in International Money Laundering ConspiracyRead the Press Release
BOSTON – A California man pleaded guilty today to his involvement in a sophisticated international money laundering and drug trafficking organization.
Qinliang Chen, 34, of Rosemead, Calif., pleaded guilty to conspiracy to commit money laundering. U.S. District Judge Angel Kelley scheduled sentencing for July 9, 2024.
In May 2023, Chen was among 12 individuals from Massachusetts, Rhode Island, New York and California charged in a superseding indictment for their alleged involvement in a sophisticated international money laundering and drug trafficking organization allegedly led by Jin Hua Zhang.
According to the charging documents, Zhang’s organization was first detected in 2021 in the greater Boston area, throughout the United States and overseas. It was determined that for a fee, Zhang laundered bulk cash for drug dealers and laundered profits from other illegal businesses. In less than a year, Zhang and his organization allegedly laundered at least $25 million worth of drug proceeds and funds from other illegal businesses. Funds were allegedly traced and seized from the Zhang organization to Hong Kong and elsewhere in China, India, Cambodia and Brazil, among other locations.
Chen served as a courier for the Zhang organization. In August and September 2022, Chen was sent to deliver $125,000 and $161,000 in cash, respectively, on behalf of the organization to a cooperating witness at a meeting location in Altamonte Springs, Fla. Chen had previously been stopped at Orlando International Airport trying to bring more than $99,000 in cash through a security checkpoint.
Zhang pleaded guilty in September 2023 and is scheduled to be sentenced in May 2024.
The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Christopher Pohl, Brian A. Fogerty and Meghan C. Cleary of the Criminal Division are prosecuting the case.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bayside State Prison Corrections Officer Admits Violating Inmates’ Civil RightsRead the Press Release
NEWARK, N.J. – A former corrections officer at Bayside State Prison in Leesburg, New Jersey, today admitted to depriving two inmates of their civil rights by failing to intervene when the inmates were being assaulted and suffered bodily injury, U.S. Attorney Philip R. Sellinger announced.
Joshua Hand, 34, of Millville, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with depriving two inmates of their right not to be subjected to cruel and unusual punishment.
According to documents filed in this case and statements made in court:
In December 2019, while working as a corrections officer, Hand was inside the officers’ quarters within the kitchen area of Bayside State Prison when the first victim was summoned to that room. Shortly after that victim entered the officer’s quarters, the exit door was blocked and in the presence of Hand, the victim was assaulted simultaneously by several inmates and taken down to the floor. Hand watched and did not attempt to intervene when multiple inmates pinned and restrained the victim on the floor while other inmates delivered multiple punches and other blows to the victim’s torso, arms, and legs. Hand did not report this assault to his supervisors or medical personnel despite knowing that he was required to do so.
Later that day, a second victim was in the officers’ quarters at the prison with Hand and another corrections officer. Without provocation, the other corrections officer struck the second victim in the legs multiple times with a broomstick. During the assault of second victim, Hand remained within arm’s reach of the assault and had a reasonable opportunity to intervene but did not attempt to do so. Once again, Hand did not report this assault to his supervisors or medical personnel.
Violating the civil rights of others carries a maximum sentence of 10 years in prison and a maximum potential fine of the greater of $250,000, twice the gross amount of pecuniary gain that any person derived from the offense, or twice the gross amount of pecuniary loss that any person suffered from the offense, whichever is greatest. Sentencing is scheduled for July 2, 2024.
U.S. Attorney Sellinger credited special agents of the FBI Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation. He also thanked the New Jersey Department of Corrections, under the direction of Commissioner Victoria Kuhn, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the Special Prosecutions Division in Newark.
hand.information.pdfBakersfield Man Sentenced to 10 Years in Prison for Distributing Fentanyl that Caused Overdose DeathRead the Press Release
FRESNO, Calif. — Marcus Randall, 40, of Bakersfield, was sentenced today to 10 years in prison for distributing fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 16, 2020, Randall knowingly distributed 10 “blues” (fentanyl pills) to K.T. in Bakersfield. Randall knew that the pills he distributed to K.T. contained fentanyl. K.T. suffered a fatal fentanyl overdose on Dec. 17, 2020. Law enforcement later searched Randall’s residence under a warrant and found a fentanyl pill and about $5,500 in cash. His phone records revealed a history of dealing drugs, including fentanyl pills, both to K.T. and other unidentified people, including after K.T.’s overdose death.
This case was the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the U.S. Secret Service, the Bakersfield Police Department, the Kern County Probation Department, and the California Highway Patrol. Assistant U.S. Attorneys Justin J. Gilio and Antonio J. Pataca prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Arizona Man Sentenced to Federal Prison for Transporting MethamphetamineRead the Press Release
A man who possessed methamphetamine with the intent to distribute it was sentenced today to more than 10 years in federal prison.
John Trinidad Qualls, age 43, from Tucson, Arizona, received the prison term after a September 22, 2023 guilty plea to possession with intent to distribute 50 grams or more of methamphetamine and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
In a plea agreement, Qualls admitted that, on December 31, 2022, in Floyd County, Iowa, deputies with the sheriff’s office stopped him for speeding. Qualls was driving 33 miles per hour over the speed limit. Qualls handed the deputies a pouch that contained his license, insurance, and registration. There was marijuana residue inside the pouch, and both the pouch and documents smelled of marijuana. Qualls admitted that he had used marijuana earlier that day. Deputies searched the car and found 1,200 grams of methamphetamine.
Qualls was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Qualls was sentenced to 121 months’ imprisonment and must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Qualls is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Devra T. Hake and investigated by the Floyd County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2021. Follow us on Twitter @USAO_NDIA.
24 February 2024
South Carolina Man Found Guilty of Hate Crime for Killing a Transgender Woman Because of Her Gender IdentityRead the Press Release
After a four-day trial in a federal hate crime case, a jury found a South Carolina man, Daqua Lameek Ritter, guilty of all charges in the indictment, which included one hate crime count, one federal firearms count, and one obstruction count, all arising out of the murder of Dime Doe, a transgender woman.
“Acts of violence against LGBTQI+ people, including transgender women of color like Dime Doe, are on the rise and have no place in our society,” said Acting Associate Attorney General Benjamin C. Mizer. “The Justice Department takes seriously all bias-motivated acts of violence and will not hesitate to hold accountable those who commit them. No one should have to live in fear of deadly violence because of who they are.”
“A unanimous jury has found the defendant guilty for the heinous and tragic murder of Dime Doe, a Black transgender woman,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The jury’s verdict sends a clear message: Black trans lives matter, bias-motivated violence will not be tolerated, and perpetrators of hate crimes will be prosecuted to the fullest extent of the law. This case is historic; this defendant is the first to be found guilty by trial verdict for a hate crime motivated by gender identity under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. We want the Black trans community to know that you are seen and heard, that we stand with the LGBTQI+ community, and that we will use every tool available to seek justice for victims and their families.”
“Years of collaborative work were validated by a jury’s unanimous verdict: guilty. This sends a message of hope to our community that we will fight for the rights of those targeted for their gender identity or sexual orientation. As Dime Doe’s loved ones remember her, we hope this verdict provides them some comfort,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Our office will continue to work with the FBI to increase education on federal hate crime statues and how we can, and will, prosecute crimes motivated by bias in South Carolina.”
“Justice has prevailed in this case,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “This guilty verdict underscores the importance of upholding the rights and dignity of all individuals. This outcome will never completely erase the pain Doe’s family faces, but it is our hope that it brings a measure of closure to this tragic and heinous crime.”
Evidence presented at trial showed that Ritter was upset that rumors about his sexual relationship with Dime Doe were out in the community. On Aug. 4, 2019, the defendant lured Doe to a remote area in Allendale, South Carolina, and shot her three times in the head. At trial, the government proved beyond a reasonable doubt that Ritter murdered Doe because of her gender identity. Ritter then burned the clothes he was wearing during the crime, disposed of the murder weapon, and repeatedly lied to law enforcement.
Ritter* faces a maximum penalty of life in prison. A sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Columbia Field Office investigated the case, with the assistance of the South Carolina Law Enforcement Division, Allendale County Sheriff’s Office, and Allendale Police Department.
Assistant U.S. Attorneys Brook Andrews, Ben Garner, and Elle Klein for the District of South Carolina and Trial Attorney Andrew Manns of the Civil Rights Division’s Criminal Section are prosecuting the case.
This was the first trial under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for violence against a transgender person. The Shepard-Byrd Act is a landmark federal statute passed in 2009 which allows federal criminal prosecution of hate crimes motivated by the victim’s actual or perceived sexual orientation or gender identity.
Additional information about the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act is available here.
* This has been corrected to reflect the correct name of the defendant.
23 February 2024
Virginia Beach Man Sentenced to Seven Years for Credit Union Fraud and Counterfeit CurrencyRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced yesterday to seven years in prison for his role in a fraudulent scheme to defraud Navy Federal Credit Union and for passing counterfeit currency at Wal-Mart stores.
According to court documents, between April and July 2018, Malcolm McKinney, 32, engaged in an identity theft scheme to defraud the Navy Federal Credit Union (NFCU). McKinney provided stolen identities to a co-conspirator who would use the identities to create accounts at NFCU and apply for wholly fictitious auto loans. Once the loans were approved, other conspirators would collect the loan check, cash it, and distribute the money to members of the conspiracy. In this manner, the conspiracy caused over $300,000 in loss to NFCU.
After pleading guilty to his role in the NFCU conspiracy, and while released on bond awaiting sentencing, McKinney embarked on a counterfeit currency spree in the spring of 2023. McKinney passed approximately $25,000 in counterfeit U.S. currency to at least 10 different Wal-Mart stores located in Virginia, North Carolina, and South Carolina. McKinney used counterfeit fifty- and twenty-dollar bills to purchase items such as video game consoles, kitchen mixers, sewing machines, and breast pumps. McKinney was identified by Wal-Mart security camera footage and arrested in the Western District of Virginia.
Four co-conspirators from this case previously pleaded guilty and received sentences ranging from 45 to 81 months in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Joseph L. Kosky prosecuted 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. 2:20-cr-78.
Undocumented Venezuelan Man Charged with Possessing Fake Green CardRead the Press Release
ATHENS, Ga. – An undocumented man residing in Athens—who is the brother of the suspect charged with murdering a woman on University of Georgia’s campus—was charged tonight by federal criminal complaint with possessing a fraudulent green card and is currently being held in state custody.
Diego Ibarra, 28, of Venezuela, is charged by criminal complaint with possession of a fraudulent document. Ibarra’s initial appearance has not yet been scheduled. If convicted, Ibarra faces a maximum of ten years in prison. Diego Ibarra is the brother of Jose Antonio Ibarra, 26, of Venezuela, who is facing state charges for malice murder, felony murder, aggravated battery, aggravated assault, false imprisonment, kidnapping, hindering a 911 call and concealing the death of another in the death of Laken Hope Riley.
According to the criminal complaint and sworn affidavit, Homeland Security Investigations (HSI) was made aware of Ibarra’s undocumented presence in the United States on Feb. 23, 2024. An Athens-Clarke County Police Department (ACCPD) officer approached Ibarra earlier today because he matched the description of a suspect in the homicide investigation. Ibarra presented the officer with a U.S. permanent resident card (also called a green card) as identification. The card was determined to be fraudulent. Ibarra is a citizen of Venezuela and was processed for expedited removal but claimed a credible fear of return to Venezuela. He was consequently released from immigration custody pending adjudication of his claim for asylum on April 30, 2023.
According to the criminal complaint and sworn affidavit, since entering the country, Ibarra has been arrested three times by Athens law enforcement: on or about Sept. 25, 2023, Ibarra was arrested by ACCPD for driving under the influence of alcohol and driving without a license; on or about Oct. 27, 2023, Ibarra was arrested by ACCPD for theft by shoplifting; and on or about Dec. 8, 2023, Ibarra was arrested by ACCPD for failure to appear for a fingerprintable offense.
The case is being investigated by Homeland Security Investigations (HSI) with critical assistance from FBI, GBI, Athens-Clarke County Police Department, University of Georgia Police Department and Clarke County Sheriff’s Office.
Assistant U.S. Attorney Mike Morrison is prosecuting the case.
A complaint is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
U.S. Attorney's Office Hosts Fraud and Abuse Prevention Seminars for SeniorsRead the Press Release
BOSTON – This week, the United States Attorney’s Office partnered with the Winchester and Waltham Police Departments to host financial fraud awareness seminars for older adults at the Winchester Senior Community Center and the Waltham Council on Aging.
The seminars provided education and awareness to local seniors about financial fraud and featured a number of presentations from seasoned professionals, including Acting United States Attorney Joshua S. Levy; Deputy U.S. Attorney Mary Murrane; and the U.S. Attorney’s Office’s Elder Justice Coordinator, with assistance from members of the Internal Revenue Service and United States Postal Service. Topics covered included common scams directed at older adults; ways to avoid being victimized; what to do if victimized; and available local, state and federal resources. This week’s events were in support of the Department of Justice’s ongoing commitment to fighting for justice for older adults and stopping elder abuse and financial fraud by actively promoting public awareness.
According to the FBI’s Internet Crime Complaint Center 2022 report, victims over 60 experienced an 84% increase in loss from 2021. The total loss reported was over $3 billion, including nearly 5,500 victims who lost over $100,000. Millions of older Americans fall prey to various financial scams, including tech support schemes; romance scams; and sweepstakes scams just to name a few. Perpetrators establish trust through online, phone, or mail communication, as well as indirectly through TV and radio. The financial exploitation of older adults often leads to a diminished quality of life through the potential loss of independence, declined health and psychological or emotional distress caused by the victimization.
“Protecting seniors from abuse and exploitation is one of my top priorities. Outreach activities like this are essential to raise awareness and educate communities about potential threats, how to report them, steps people can take to protect themselves from being victimized and available resources,” said Acting U.S. Attorney Levy. “Scams targeting seniors are not just about the money lost – they also rob victims of their dignity and self-confidence. Our office would much rather prevent criminal conduct than prosecute it. Nonetheless we are committed to continue our will strong track record of prosecuting individuals who prey on vulnerable members of our communities.”
“Preventing the perpetration of fraud against our elderly community is a top priority of IRS CI,” said Harry Chavis, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Boston. “This week’s seminars mark a key milestone in our efforts to educate the community and provide them with the tools they need to identify fraud schemes before they are victimized. We appreciate the opportunity to partner with our local, state, and federal law enforcement partners for this awareness seminar and we will continue that collaboration as we investigate financial fraud schemes that prey on our most vulnerable populations.”
“The U.S. Postal Inspection Service is committed to protecting one of our nation’s most vulnerable populations, our senior citizens. We know that many elderly Americans are specifically targeted by scammers who aim to steal pensions and life savings through deceptive and manipulative tactics. The U.S. Postal Inspection Service takes every opportunity to conduct public outreach and educate seniors on the various ways they can safeguard themselves from becoming a scammer’s next target. We are proud to partner with our federal and local law enforcement partners on the topic of elder fraud and abuse prevention to continue this important work of protecting American seniors” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division.
“Protecting our seniors is one of our highest priorities and something we take very seriously. Bringing awareness to these scams is essential to reducing victimization. One way we accomplish this is through partnerships. We are pleased to partner with the U.S. Attorney’s Office and look forward to future collaborations that will enhance the lives and safety of all Waltham residents” said Waltham Police Chief Daniel O’Connell.
“Since 2020, the Winchester Police Department has seen a rise in “grandchildren in need” scams, IRS fraud claims, contracting scams and fraudulent “government official” phone scams. It is through educational programs like this, that we can help prevent and protect our vulnerable residents from theft,” said Sergeant Michael DeRosa, Community Resource Officer of the Winchester Police Department.
To learn more about common elder fraud schemes and ways to protect yourself, please visit: https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/elder-fraud. You can also visit https://www.justice.gov/file/1172351/download to learn more about warning signs of elder abuse and reporting resources in Massachusetts. For more information and resources from the Department of Justice's Elder Justice Initiative, please visit https://www.justice.gov/elderjustice.
If you need assistance or to report elder abuse, please contact your local adult protective services agency through the Eldercare Locator or by call the helpline at 1-800-677-1116 Monday – Friday 9am – 8pm EST. To report elder fraud, please visit the FBI’s IC3 Elder Fraud Complaint Center or contact the dedicated National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311 Monday – Friday, 10am – 6pm EST.
U.S. Attorney's Office Hosts Fourth Community Event as Part of DOJ's United Against Hate InitiativeRead the Press Release
PHOENIX, Ariz. – The United States Attorney’s Office for the District of Arizona held its fourth United Against Hate event on Wednesday at the Valley of the Sun Jewish Community Center in Scottsdale, Arizona. The event provided an opportunity for an informative and robust discussion with leaders from Arizona’s Jewish community. Over 150 invited guests, including community members, local leaders, and law enforcement, were in attendance. The event focused on establishing a dialogue between the community and law enforcement and on increasing community understanding and reporting of hate crimes and hate incidents.
“We remain committed to investigating and pursuing charges against those who induce fear and trauma through acts of hate directed at our fellow citizens based on their religious beliefs,” said United States Attorney Gary Restaino. “We are appreciative of the Jewish community and its leaders for convening with us, and thankful most of all for the energetic participation of many students from Arizona State University: they are our next generation of leaders and a critical voice in the community.”
Wednesday’s event featured a panel discussion among community leaders, local law enforcement, and the U.S. Attorney. The discussion allowed attendees to hear directly from members of the local Jewish community, who shared their thoughts, concerns, and experiences with hate crimes and hate incidents.
This fourth United Against Hate event follows similar meetings between the U.S. Attorney’s Office and leaders of Arizona’s African American, LGBTQ+, and Hispanic communities. The District of Arizona will hold additional United Against Hate events in the coming months to engage with communities across the state. These events will further encourage collaboration, support hate crimes prevention efforts, and encourage more Arizonans to report hate crimes and hate incidents.
RELEASE NUMBER: 2024-021_United Against Hate Event
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.U.S. Army Reserve Colonel Accused of Stealing Thousands in Unearned Military Pay EntitlementsRead the Press Release
SALT LAKE CITY, Utah – A federal grand jury in Salt Lake City, Utah, returned an indictment Feb. 21, 2024, charging a U.S. Army Reserve Colonel, formerly of Utah’s 76th Operational Response Command, for his role in defrauding the United States out of more than $60,000 in unearned military pay entitlements.
The announcement comes as part of the U.S. Attorney’s Office’s ongoing efforts with the Department of Defense Office of Inspector General and U.S. Army Criminal Investigation Division to address military pay fraud that occurred during the coronavirus pandemic.
According to court documents, Reece Dennis Roberts, 53, of Herriman, Utah, misrepresented his and his family’s primary residence in Utah, fabricated lease and listing documents, and submitted over a dozen false vouchers to military officials from June 2020 through July 2021. Though Roberts and his family lived in Herriman, Utah from 2020–2021, the indictment alleges that, upon receiving orders calling him to active duty at Fort Douglas, Utah, Roberts changed his primary residence to an out-of-state address that neither he nor his family occupied. In doing so, Roberts claimed entitlement to a family separation allowance, reimbursement for personal lodging expenses, and other entitlements that were not available to local servicemembers.
As further alleged in the indictment, the defendant duped military officials into paying him $3,700 per month in lodging reimbursements for a house he did not rent or own. The indictment alleges he accomplished this by fabricating a lease agreement and online listing for the fictitious rental, orchestrating sham rent payments, and repeatedly submitting false vouchers to military officials. Additionally, Roberts allegedly worked with an unindicted co-conspirator, recruited a third person to receive sham rent payments and return the payments to Roberts’ bank account using Venmo. This allowed Roberts to create fake rent receipts that were submitted to military officials every month for reimbursement.
“This type of deceit and misconduct is unacceptable for servicemembers at any rank, but it is particularly disheartening when committed by a field grade officer during a national emergency,” said U.S. Attorney Trina A. Higgins of the District of Utah. “The vast majority of servicemembers in Utah are law-abiding and deserve the utmost appreciation for keeping the people of Utah safe. My office remains committed to working with military officials and other law enforcement partners to prosecute military fraud and corruption.”
Roberts is charged with various federal crimes, including filing a fraudulent claim against the United States, conspiring to defraud the United States, theft of government property, and conspiracy to commit money laundering. Roberts’ initial court appearance on the indictment is scheduled for March. 13, 2024, at 1:30 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
The Department of Defense Office of Inspector General and U.S. Army Criminal Investigation Division is investigating the case.
Assistant United States Attorney Tanner Zumwalt of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two companies in Alaska seafood shipping industry to pay $9.5M to U.S. in settlement for Jones Act violationsRead the Press Release
ANCHORAGE, Alaska – Two companies in the Alaska seafood shipping industry recently settled a lawsuit challenging penalties and fines levied by U.S. Customs and Border Protection (CBP) for violating the Jones Act, a law that requires merchandise be transported by U.S. flagged vessels between U.S. ports.
An exception to the U.S. flagged vessel requirement allows seafood from Alaska to be transported to the mainland U.S. if it travels via Canadian rail. The companies challenged the penalties and fines in the U.S. District Court of Alaska, saying they did not violate the Jones Act while transporting seafood from Alaska to the mainland U.S. because it was “transported” by Canadian rail.
According to court documents, Kloosterboer International Forwarding LLC (KIF) and Alaska Reefer Management LLC (ARM) arranged transportation and related services to move frozen seafood from Alaska to the East Coast via maritime shipping. For over a decade, the companies moved seafood from Dutch Harbor, Alaska, to a port in New Brunswick, Canada, on foreign-flagged vessels. Once in Canada, KIF arranged for the seafood to be offloaded from the vessel onto trucks in the port. The trucks were then driven onto a flatbed rail car on the Bayside Canadian Railway (BCR), a roughly 100-foot length of railroad track located entirely within the Port of Bayside, where they rode the length of the rail and back before being driven off the train cars and proceeding directly to a border crossing in Maine for final transport to the mainland U.S. The BCR was specifically built and exclusively used to move the seafood in this manner so the companies could claim they met the Canadian rail exception to the Jones Act.
CBP began investigating the companies’ use of foreign-flagged vessels to transport merchandise in this manner, including over the BCR. Investigators determined the companies were in violation of the Jones Act because using the BCR did not meet the Canadian rail exception. CBP issued numerous penalty notices to KIF, and other companies involved in the shipping route, and the companies responded with a lawsuit against the federal government claiming they did not violate the Jones Act and that the penalties were unlawful.
The parties filed for summary judgement in the U.S. District Court of Alaska, and the Court ruled the companies’ utilization of the BCR for part of the transport of seafood from Alaska to the mainland U.S. was unlawful because there was no actual “transportation” of goods on the BCR, which is a requirement to meet one of the exceptions under the Act.
A settlement agreement was finalized between the companies and the U.S. in January 2024. The agreement requires KIF and ARM to pay $9.5 million to the U.S. The companies also stopped using the BCR to transport seafood to the U.S. after this ruling.
“This is the second largest settlement of a case brought under the Jones Act in the history of our Nation,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Our prosecutors and law enforcement partners did a tremendous job successfully investigating and litigating this complex case. Our office will continue to dedicate resources to ensuring the laws in place to protect fair maritime commerce are followed by all industries in Alaska.”
“The resolution of this case sends a clear signal that CBP will use its law enforcement powers to detect and deter schemes that are designed to circumvent laws – such as the Jones Act -- which are intended to protect U.S. industries,” said AnnMarie R. Highsmith, Executive Assistant Commissioner, Office of Trade, U.S. Customs and Border Protection.
CBP investigated the case.
Assistant U.S. Attorneys Dustin Glazier and Seth Beausang, and former Assistant U.S. Attorney Siobhan McIntyre prosecuted the case, with significant assistance from Senior Trial Counsel Monica Triana with the Justice Department’s International Trade Field Office and Senior Attorney Marc Matthews with CBP.
UPDATE: The quote from S. Lane Tucker has been amended from the original publication.
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Two Men Indicted for Money Laundering ConspiracyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment on Feb. 15, 2024, against Alex Altoh, 64, of Roseville, and Oumar Sidibe, 30, formerly of Reno, Nevada, charging them with conspiracy to commit money laundering, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed on Feb. 21 after Altoh’s arrest. Sidibe is yet to be apprehended.
According to court documents, between January 2021 and November 2021, Altoh and Sidibe were involved in a conspiracy to launder the proceeds from two large business email compromise schemes, in which two corporate victims were tricked into making payments to bank accounts controlled by Altoh and another person, rather than to the intended beneficiaries of the payments. Altoh and Sidibe then quickly withdrew a large portion of the funds by way of check deposits, which effectively transferred the funds, concealed their unlawful nature, and prevented them from being clawed back. Law enforcement has traced Altoh and Sidibe to about $3.9 million in laundered fraud proceeds.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Denise N. Yasinow and Matthew Thuesen are prosecuting the case.
If convicted, Altoh and Sidibe each face a maximum statutory penalty of 20 years in prison and a fine of $500,000 or twice the value of the property involved in the money laundering conspiracy. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
altoh_and_sidibe_indictment.pdfTwo Indian Nationals Charged in Elder Fraud Gold Bar Courier ScamRead the Press Release
Cleveland – Anil Mangukia, 39, of Edison, New Jersey, and Yash Navadia, 25 of Secaucus, New Jersey, who were Indian Nationals, were both indicted by a federal grand jury and charged with money laundering conspiracy for their roles in an elder fraud gold bar courier scam (“Courier Scam”) targeting older Americans. They allegedly stole more than $127,000 and attempted to steal an additional $650,000 from a victim in Warrren, Ohio.
According to court documents, coconspirators posed as a customer service employee at a company or bank. They contacted a victim—typically an elder person—and falsely claimed that the victim’s account was at risk or had been compromised by a hacking event or similar computer intrusion. The purported customer service employee then referred the victim to another perpetrator who posed as a government agent, claiming that the fake government agent would assist the victim in avoiding or mitigating the effects of the account compromise. The fake government agent would discuss the incident with the victim, validate the false story told by the purported customer service or bank employee, and instruct the victim to either (1) move the victim’s money to another account that the perpetrators controlled, or (2) purchase gold or other valuable items and move them to the perpetrators’ account, claiming that the new account was secure and safe from the purported hackers. The perpetrators then used the stolen funds for their own benefit, without the victim’s knowledge or consent.
According to court documents, the defendants caused their victims to engage in several different types of transfers, such as the following: (i) withdrawing currency, converting it to cryptocurrency, and transferring the cryptocurrency to the coconspirators, who claimed they would deposit it into secure accounts; (ii) initiating bank transfers directly from victim’s accounts to acquire things of value that were handed over or otherwise transferred to coconspirators, who claimed that they would then convert those items into funds and deposit them in a secure account for the victim.
According to court documents, the defendants and their coconspirators also obtained proceeds from the Courier Scam directly from victims, traveling to meet victims either at their homes or nearby designated locations. There, the victims would give the defendants and their coconspirators U.S. currency, gold bars, or gold coins under false pretenses, persuaded that the perpetrators would secure the victims’ property.
“Our Office is committed to investigating and prosecuting those who commit financial scams that defraud our elderly citizens of their hard-earned savings,” said U.S. Attorney Rebecca C. Lutzko. “Financial fraud schemes of any variety cause serious financial harm to our community members, but those that target the elderly are particularly reprehensible. We encourage all members of the public to remain vigilant against such hoaxes and report suspected scams to law enforcement.”
“The FBI is focused on finding and investigating criminals preying on the trust of older Americans,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “Scams are becoming more complex, with several layers of deceit in their ploy and bad actors working in groups to give the illusion of legitimacy. The FBI will not yield in its pursuit to identify these criminals and dismantle scam and fraud-based networks.”
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it is the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This investigation was conducted by the Cleveland Division of the FBI. This case is being prosecuted by Assistant U.S. Attorneys Yasmine Makridis and Brian M. McDonough.
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 seven days a week from 10:00 a.m. to 6:00 p.m. eastern time. English, Spanish and other languages are available.
Two Charlotte-Area Businessmen Sentenced to Prison for Fraudulent Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Two Charlotte-area business partners were sentenced to prison late yesterday for executing a fraudulent investment scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Marlin Hershey, 54, of Cornelius, N.C., was sentenced to 21 months in prison followed by two years of supervised release. Dana Bradley, 53, also of Cornelius, was sentenced to 10 months plus one day in prison followed by two years of supervised release. In addition, the court imposed significant restitution and financial penalties on the defendants, including more than $333,000 in restitution to victims and combined forfeiture and fines of more than $600,000.
North Carolina Secretary of State Elaine F. Marshall and Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, join U.S. Attorney King in making today’s announcement.
According to filed documents and court proceedings, from approximately 2009 to 2021, Hershey and Bradley conspired to defraud numerous victims who invested in two unregistered securities offerings promoted by the defendants, Performance Retire on Rentals, LLC (Performance Retire), and Distressed Lending Fund (DLF). To execute the scheme, the defendants provided victims with investment materials that contained false and misleading statements and did not disclose material information. For example, the defendants did not disclose to investors negative information about the defendants’ backgrounds and the financial troubles of the entities for which they were soliciting investments. The defendants also did not inform investors that the defendants received undisclosed “management” fees, and commission-like payments that were typically 10% of the victims’ investments. To further conceal the scheme, the defendants sent to investors periodic performance reports that disclosed false information about the status and health of their investments and made Ponzi-style payments to existing investors using new investors’ money. Eventually, both Performance Retire and DLF failed, causing financial losses to investors.
On June 1, 2023, the defendants pleaded guilty to wire fraud conspiracy. They will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney King thanked the Securities Division of the North Carolina Secretary of State and the FBI for their joint investigation of the case.
Assistant U.S. Attorneys Daniel Ryan and Taylor Stout of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Third Revocation of Supervised Release Lands Fort Dodge, Iowa Man Back in Federal Prison for Fourth TimeRead the Press Release
A man who violated the terms of his federal supervised release for the third time was sentenced to 30 months’ imprisonment.
Matthew Brockway, 44, from Fort Dodge, Iowa, received the prison term after admitting to multiple violations of his supervised release, including several failures to report/submit to urinalysis, numerous uses of controlled substances, and failures to report as directed by U.S. Probation. Brockway initially was sentenced to 180 months’ imprisonment in 2010 for drug trafficking offenses and was first released to supervision on February 24, 2021. Less than a year later, on January 27, 2022, Brockway’s supervised release was revoked for various supervised release violations, including new state law violations and he was sentenced to federal prison for 24 months. After being released a second time on November 25, 2022, mere months later, on January 9, 2023, Brockway was revoked again for various supervised release violations, including using drugs and sentenced to 11 months’ imprisonment. On November 17, 2023, Brockway was released on his third supervision and has now been ordered to serve 30 months in federal prison.
Brockway was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Brockway is being held in the custody of the U.S. Marshals Service until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the United States Probation Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 08-3026. Follow us on Twitter @USAO_NDIA.
Tampa Man Indicted for Unauthorized Computer Intrusion and Related Violations of the Wiretap ActRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Timothy Burke (45, Tampa) with conspiracy, unauthorized access of protected computers, and violations of the Wiretap Act. If convicted on all counts, Burke faces a maximum penalty of 62 years in federal prison. The indictment also notifies Burke that the United States is seeking forfeiture of a website domain and 20 computer-related devices used to commit the charged criminal conduct, and $1,500, the proceeds of certain charged criminal conduct.
According to the indictment, Burke and Conspirator 2 secured and used compromised credentials—usernames and passwords—to gain unauthorized access to protected computers owned or used by the victim entities, namely the “National Sports League” and “StreamCo,” and to obtain and steal information from those entities’ computers. As to the StreamCo-related conduct, the indictment further alleges that Burke and Conspirator 2: (1) used the compromised credentials to access a website of the StreamCo-Net, a StreamCo service that allowed its broadcaster-customers to record and transmit high-resolution encoded content and communications over the Internet; (2) obtained and stole StreamCo proprietary information from that website; and then (3) used that stolen StreamCo proprietary information to intercept, download, and save the StreamCo broadcaster-customers’ streams. The indictment also specifies two StreamCo broadcaster-customers impacted by the charged conduct.
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 Federal Bureau of Investigation, Tampa Field Office – Cyber Squad. It will be prosecuted by Assistant United States Attorneys Jay G. Trezevant and James A. Muench.
Download IndictmentTahlequah Resident Sentenced for Federal Drug and Gun CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tyler Aaron Meigs, age 32, of Tahlequah, Oklahoma, was sentenced to 63 months in prison for one count of Possession with Intent to Distribute Methamphetamine and 63 months in prison for Felon in Possession of a Firearm, with the terms of imprisonment to run consecutively.
The charges arose from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Cherokee County Sheriff’s Office.
On June 6, 2023, Meigs pleaded guilty to possessing a quantity of methamphetamine with the intent to distribute it to others in the Eastern District of Oklahoma, and to possessing a firearm after having been convicted of a felony punishable by more than one year in prison. According to court documents, on October 4, 2022, Cherokee County Sheriff deputies arrived at the scene of a single car accident. Meigs, the sole occupant of the vehicle, was found in possession of a handgun and approximately 41 grams of methamphetamine.
The Honorable Keith Starrett, U.S. District Judge in the United States District Court for the Southern District of Mississippi, sitting by assignment, presided over the hearings in Muskogee. Meigs was remanded to 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.
Assistant United States Attorney Ryan Bondura represented the United States.
Stephens County Woman Sentenced to Serve 15 Years in Federal Prison for Child AbuseRead the Press Release
OKLAHOMA CITY – Earlier this week, CAITLYN CHEYENNE DOWNS, 24, of Stephens County, was sentenced to serve 180 months in federal prison for child abuse in Indian Country, announced U.S. Attorney Robert J. Troester.
On December 7, 2022, a federal grand jury returned a three-count Indictment against Downs, charging her with murder in the second degree and two counts of child abuse. The Indictment alleges that between May 11, 2022, and September 20, 2022, Downs willfully failed to protect two minor children from harm or threatened harm and that Downs was responsible for the health, safety, and welfare of the children.
According to public record, Downs left three minor children in the care of another adult on several occasions in 2022, and willfully ignored warning signs that the adult was physically abusive toward the children. In September 2022, one of the children died as a result of a head injury sustained during such abuse.
On August 29, 2023, Downs was charged by a one-count Superseding Information with child abuse, to which she pleaded guilty.
This case is in federal court because Downs is a citizen of the Choctaw Nation of Oklahoma and the crime occurred within the boundaries of the Chickasaw Nation.
At the sentencing hearing on Wednesday of this week, U.S. District Judge Stephen P. Friot sentenced Downs to serve 180 months in federal prison, followed by five years of supervised release. In announcing the sentence, the court noted the seriousness of the offense, adding that Downs was “appallingly dismissive” when she was alerted the children were continuously being abused in 2022.
This case is a result of an investigation by the FBI Oklahoma City Field Office and the Duncan Police Department. Assistant U.S. Attorney Tiffany Edgmon and Special Assistant U.S. Attorney Kaleigh Blackwell are prosecuting the case.
Reference is made to public filings for more information.
St. Louis Woman Admits Aiding $291,000 Pandemic FraudRead the Press Release
ST. LOUIS – A woman from St. Louis, Missouri on Friday admitted conspiring to defraud a COVID-19 pandemic relief program.
Jeannine Buford, 45, pleaded guilty to wire fraud conspiracy and admitted submitting a fraudulent loan application to the Paycheck Protection Program with Porshia L. Thomas.
In April of 2020, Buford changed the name of an existing company to Couture Trading Inc. with the Montana Secretary of State’s Office. She listed herself as the company president and Thomas as the director, vice president, secretary and treasurer, the indictment says. On July 15, 2020, Thomas, with Buford’s help, completed and submitted a fraudulent PPP loan application for Couture Trading.
Buford admitted that she and Thomas falsely claimed the company was an operating business located in California, had 15 employees and an average monthly payroll of $120,000. They claimed the loan would be used for salaries and business expenses and submitted fake company bank records.
The bank issued a $291,000 PPP loan on Sept. 8, 2020. Thomas then wired $10,000 to Buford and wrote her a $65,000 check. Buford spent the money on personal expenses, including food, clothes, the $14,000 deposit on a 2017 BMW X6, a $5,000 couch and other furniture and $1,855 to rent a luxury apartment in downtown St. Louis.
The wire fraud charge carries a maximum penalty of 20 years in prison, a $250,000 fine, or both.
Thomas pleaded guilty to a bank fraud charge and is scheduled to be sentenced March 11.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Derek J. Wiseman is prosecuting the case.
St. Louis County Man Wounded in Drug-Linked Shootout Sentenced to 7 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Friday sentenced a man who was shot while dealing drugs to seven years in prison.
Jeremiah Hill was selling drugs outside a market in the 12000 block of Bellefontaine Road in St. Louis County on Dec. 10, 2021. During a dispute with two men in a vehicle about the amount of marijuana he sold them Hill pulled out a 9mm pistol and pointed it at the driver. The passenger pulled his own gun and the driver tried to grab his. Hill and the driver were both hit in the exchange of gunfire. ShotSpotter indicated 30 shots had been fired.
When police arrived, Hill was lying on the ground, injured, and was taken to the hospital. Police found drugs including marijuana, fentanyl and oxycodone in Hill’s belongings at the scene.
Hill, 21, of Bellefontaine Neighbors, Missouri, pleaded guilty in November to one count of possession and brandishing of a firearm in furtherance of a drug trafficking crime.
The St. Louis County Police Department investigated the case. Assistant U.S. Attorney Catherine Hoag prosecuted the case.
Shreveport Gang Member Sentenced in Federal Court for Illegally Possessing a Firearm While Under Indictment on State Court Charge of Second Degree MurderRead the Press Release
SHREVEPORT, La. – United States Attorney Brandon B. Brown announced that Devoris Antonio Hardy, 23, of Shreveport, Louisiana, was sentenced yesterday on firearms charges. United States District Judge Donald E. Walter sentenced Hardy to 36 months in prison, followed by 3 years of supervised release.
According to information presented in court, Hardy, who had ties to a Shreveport gang, was indicted on March 25, 2021, in Caddo Parish for one count of second degree murder in connection with a murder that happened in December 2020. On April 6, 2021, he was present with his counsel, formally arraigned on all charges and was released on a $250,000 bond.
Less than one year later, on March 14, 2022, Shreveport Police Department officers responded to a call about two cars shooting at each other at the corner of Youree Drive and East Washington Street in close proximity to the Montessori School for Shreveport. Upon arrival, officers located two individuals outside of a vehicle that had a gunshot hole in the rear window. Defendant Hardy was located a little further away on East Washington Street. Officers found six spent shell casings inside Hardy’s vehicle. In addition, officers found a Glock pistol, model: 22 Gen 4, Caliber: 40 in the bed of a pickup truck that belonged to an innocent person where officers learned Hardy had stashed the pistol following the shootout. The shell casings found in Hardy’s vehicle matched the Glock 22 found in the bed of the pickup truck.
Hardy admitted to officers that while attending a hearing regarding his second degree murder charge in Caddo Parish that morning, he saw a member of a rival gang in the courtroom that he had issues with. Hardy stated that he thought they were about to fight in the courthouse. After court, he was picked up by his brother and suspected that the gang member would follow him. Hardy asked for the gun, which he stated was his friend’s fathers’ gun, because he was nervous. He told officers that shortly thereafter another vehicle approached their vehicle and opened fire. Hardy returned fire and the vehicle he was in attempted to get away. Hardy admitted that the gun found in the pickup truck was the one he used.
Hardy was indicted in federal court for receipt of a firearm by a person under indictment in May 2022 and was held without bond due to him being a danger to the community. In August 2023, Hardy proceeded to a jury trial in Caddo Parish District Court on the second degree murder charge and the jury returned a responsive verdict of negligent homicide. He was sentenced to the maximum term of imprisonment allowed by the state statute, five years. Hardy pleaded guilty to the federal charge on October 23, 2023, and was subsequently sentenced yesterday.
“This is a dangerous individual who has a callous disregard for human life,” said U.S. Attorney Brandon B. Brown. “We are pleased that this Court upward departed from the recommended sentencing guidelines in this case to a 36 month sentence. We are working with law enforcement at every level and District Attorney Stewart’s office to get firearms that are in the wrong hands out of those hands and put Shreveport’s most dangerous individuals in state and federal prison.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Shreveport Police Department and prosecuted by Assistant United States Attorney J. Aaron Crawford.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Shoreham Man Sentenced for Child Exploitation OffensesRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that on February 22, 2024, Scott Remick, 48, of Shoreham, Vermont, was sentenced in United States District Court in Burlington, Vermont, to serve 80 months in prison after his guilty plea to one count of receipt of child pornography (also known as child sexual abuse material, or CSAM). United States District Judge Christina Reiss also ordered Remick to serve a 14-year term of supervised release and to pay two assessments: $5,000 pursuant to the Justice for Victims of Trafficking Act of 2015, and $5,000 pursuant to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018.
According to court records and proceedings, on June 16, 2021, a source of information (SOI), who is a private software developer and security analyst and who is part of a group of individuals involved in analyzing a specific piece of software with a specific security vulnerability, identified a computer with the security vulnerability (the Target Computer). The SOI accessed the Target Computer, including the contents of an encrypted volume mounted on it. The SOI viewed some of the image files in that container and discovered that they depicted CSAM. The SOI also created a text file that contained directories and file names of files located in the encrypted volume. The file names indicated that the files contained sexually explicit content involving children.
The SOI reported its findings to the National Center for Missing and Exploited Children (NCMEC) and to the Vermont State Police (VSP). VSP reached out to special agents with the Department of Homeland Security, Homeland Security Investigations (HSI). After HSI spoke with the SOI and conducted additional investigation into the suspected user of the Target Computer, Scott Remick, agents obtained a warrant to search remotely electronically stored information at Remick’s residence, and a second warrant to search Remick’s residence.
On July 3, 2021, HSI agents executed the remote search warrant and recovered CSAM images, as well as items associated with Remick. On July 7, 2021, HSI agents executed the warrant to search Remick’s residence. Agents determined that a self-built computer at the residence was the same one searched pursuant to the remote search warrant. Agents found additional CSAM images on the self-built computer.
Through additional investigation, law enforcement discovered that, in 2012, Remick met a then-17-year old female on an online dating application when Remick was 37 years old. Remick and the minor female began communicating and eventually began sharing sexually explicit photos of themselves, including photos of the minor female engaging in sexually explicit conduct.
United States Attorney Nikolas P. Kerest commended the efforts of Homeland Security Investigations, the Vermont State Police, and the Vermont Internet Crimes Against Children Task Force in the investigation and prosecution of Remick.
Barbara A. Masterson, Assistant U.S. Attorney for the District of Vermont, represented the government. Assistant Federal Public Defender Steven L. Barth represented Remick.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Sex Offender Sentenced to Serve More Than 27 Years in Federal Prison for Attempted Enticement of a Minor to Engage in Sexual ActivityRead the Press Release
OKLAHOMA CITY – Yesterday, STEVEN NEEL HARRY, 62, of Oklahoma City, was sentenced to serve 327 months in federal prison for attempted coercion and enticement of a minor to engage in sexual activity, announced United States Attorney Robert J. Troester.
On April 18, 2023, a federal grand jury returned a two-count Indictment against Harry, charging him with attempted coercion and enticement of a minor and commission of a felony sex offense by an individual required to register as a sex offender. According to court records, in September 2022, Harry started communicating with an undercover law enforcement officer. During those conversations, Harry made clear that he was a registered sex offender and discussed meeting an individual at a hotel in Oklahoma City to engage in sexual activity with a person whom Harry believed was a 12-year-old girl. In March 2023, Harry then coordinated to meet with the “girl” at an Oklahoma City metro motel, where he was arrested. Harry had brought with him to the meeting a leather mask, leather restraints, a hammer, and other items.
“This abhorrent and vile behavior has absolutely no place in our society and will not be tolerated,” said U.S. Attorney Robert Troester. “The swift action by law enforcement and decisive punishment of more than 27 years in prison will ensure that this predator will not harm—or even attempt to harm—innocent children for many years. I applaud the work done by the FBI and prosecutors in my office to hold Mr. Harry accountable and bring him to justice.
“Identifying and stopping child predators before they strike is a critical part of the FBI’s mission,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “This sentencing reflects the hard work, dedication, and partnership between the investigators and the prosecution team to ensure the most innocent members of our community are protected.”
On May 31, 2023, Harry pleaded guilty to Count 1, and admitted to using an electronic device to set up a sexual encounter with a minor.
At the sentencing hearing yesterday, U.S. District Judge Charles Goodwin sentenced Harry to serve 327 months in federal prison, followed by a lifetime term of supervised release. In announcing his sentence, Judge Goodwin noted that Harry “fully intended to torture and rape” a child, and that the “most severe punishment” is needed for deterrence and to protect the public. Judge Goodwin also noted Harry’s criminal history. Public records reflect Harry has felony convictions for possession of a machine gun and being a drug addict in possession of firearms in Western District of Oklahoma case number CR-98-60, travel with intent to engage in a sexual act with a minor in Western District of Texas case number CR-02-71, possession of a machine gun in Western District of Oklahoma case number CR-03-13, and failure to comply with the Sex Offender Registration Act in Oklahoma County District Court case number CF-17-6413. Following Harry’s conviction for travel with intent to engage in a sexual act, he was required to register as a sex offender.
This case is the result of an investigation by the FBI Oklahoma City Field Office. Assistant U.S. Attorneys Allison B. Christian and Brandon Hale prosecuted the case.
This case is part of Project Safe Childhood (PSC), a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
Reference is made to public filings for additional information.
Salt Lake City Resident Accused of Robbing a Credit Union is Arrested and ChargedRead the Press Release
SALT LAKE CITY, Utah – A federal grand jury in Salt Lake City, Utah, returned an indictment February 21, 2024, charging a Salt Lake City man for allegedly robbing a credit union in West Valley City, Utah.
According to court documents, Joey Shaun Symond, 44, of Salt Lake City, entered Cyprus Credit Union in West Valley City on February 10, 2024, and passed the teller a handwritten note that read, “I got a gun hand over the money or your dead.” The teller complied. Symonds then took the money and left the bank on foot, leaving the note behind. Management at Cyprus Credit Union then called 911 and a West Valley City Police officer responded. That same evening, at 4:18 p.m. Unified Police Department of Greater Salt Lake received a phone call from a person identifying themselves as a relative of Symonds. The caller reported that Symonds had been at their residence and claimed to have robbed Cyprus Credit Union two hours prior. UPD responded to the area and located Symonds a short distance from the caller’s residence. West Valley City Police also responded and Symonds was identified as the same person in the robbery using a suspect description and surveillance images from inside Cyprus Credit Union. Symonds was taken into custody and a large amount of cash was seized during his arrest.
Symonds is charged with credit union robbery. His initial court appearance on the indictment was held on Feb. 23, 2024, before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City. A two-day jury trial is scheduled for April 26, 2024.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
An FBI Task Force Officer with the West Valley City Police Department is investigating the case.
Assistant United States Attorney Carlos Esqueda of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Registered Sex Offender Sentenced to 15 Years in Prison for Child Pornography OffensesRead the Press Release
BOSTON – A registered sex offender was sentenced today in federal court in Boston for receiving and possessing child sexual abuse material (CSAM) via multiple groups on a messaging app.
Angel Figueroa, 51, of Fall River, was sentenced by U.S. District Court Judge Indira Talwani to 15 years in prison and five years of supervised release. He was also ordered to pay restitution to several victims. In October 2023, Figueroa pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography.
Figueroa was identified as an active member of at least four messaging applications where CSAM was being disseminated. A forensic examination of Figueroa’s cell phone revealed approximately 523 images and 72 videos of CSAM depicting children as young as infants. At least one image depicted bondage of a child younger than two years old. Figueroa admitted that he downloaded, saved, and viewed CSAM using apps on his cell phone and had been doing so for one or two years. Figueroa is a registered sex offender based upon a 2013 Massachusetts state court conviction for indecent assault and battery on a child under 14 years old.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations, in New England; and Fall River Chief of Police Paul Gauvin made the announcement. Assistant U.S. Attorneys Jessica Soto and Meghan C. Cleary of the Major Crimes Unit and J. Mackenzie Duane of the Criminal Division prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Qatar Man Sentenced for Transportation and Possession of Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge Thomas Barber has sentenced Saoud Al Naimi (21, Tampa) to five years in federal prison, followed by a lifetime of supervised release, for transporting and possessing child sexual abuse material. The court also ordered Al Naimi to forfeit three iPhones, an iPad Pro, and a MacBook, which were used in the commission of the offense. Al Naimi was also ordered to register as a sex offender. Al Naimi entered a guilty plea on August 22, 2023.
According to court documents, Al Naimi is a citizen of Qatar and was in the United States on a student visa, attending courses at a local college. Homeland Security Investigations (HSI) received a tip from the National Center for Missing and Exploited Children (NCMEC) regarding Al Naimi’s use of an internet platform to upload a video of child sexual abuse. HSI agents searched Al Naimi’s electronic devices for evidence of child sexual abuse material and found hundreds of images and videos of children engaged in sex acts, including children under 12 years old. A search of Al Naimi’s iPhone revealed that he had obtained images of child sexual abuse in May 2020, while outside of the United States. U.S. border crossing records confirmed Al Naimi transported child sexual abuse material into the United States when he entered in January 2022. Between May 2020 and April 2022, Al Naimi transported child sexual abuse material between the United States and Qatar approximately three times.
“This predator contributed to the vile practice of sexually exploiting children online and has caused irreparable harm by condemning them to a lifetime of victimhood,” said HSI Tampa Assistant Special Agent in Charge Kristopher Pagitt. “Alongside partners like the National Center for Missing and Exploited Children, HSI investigators will always seek to stop the vile actions of child predators and hold them accountable for their actions.”
This case was investigated by Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Ilyssa M. Spergel.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Prior felon charged with gunpoint robbery of five StarbucksRead the Press Release
HOUSTON – A 24-year-old Houston resident has been indicted on multiple counts of robbery, brandishing a firearm and illegal possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Kentrelle Tatum is set to appear for his detention hearing before U.S. Magistrate Judge Andrew Edison at 11 a.m.
A federal grand jury returned the indictment Feb. 15 which alleges five counts of robbery, four counts of brandishing a firearm and one count of illegal possession of a firearm as a felon.
From Sept. 5 to Sept. 11, 2023, Tatum allegedly robbed five separate Houston-area Starbucks establishments over the course of six days while brandishing a firearm.
As a convicted felon, he is prohibited from possessing a firearm per federal law.
If convicted, Tatum faces up 20 years in federal prison for each of five counts of robbery, while a conviction for being a felon in possession of a firearm carries a possible 10-year prison term. Each of the charges could also result in fines of up to $250,000. He is also charged with four counts of brandishing a firearm while committing a crime of violence which carries a mandatory seven years to be served consecutively to any other prison term imposed.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with assistance from the Houston Police Department and Harris County Sheriff’s Office. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Precursor Chemical Broker Sentenced for Methamphetamine Importation and Money Laundering ConspiraciesRead the Press Release
A precursor chemical broker was sentenced today to 18 years and eight months in prison for methamphetamine importation and money laundering conspiracies.
According to court documents and evidence presented at trial, Javier Algredo Vazquez, 56, of Queens, New York, procured chemicals, including methylamine, for the Cartel de Jalisco Nueva Generacion (CJNG) to make controlled substances for importation into the United States. The CJNG, which is based in the State of Jalisco in Mexico, is one of the largest, most dangerous, and most prolific drug cartels in Mexico and is responsible for transporting tonnage quantities of methamphetamine, fentanyl, and other drugs into the United States. Algredo Vazquez imported over 5 million kilograms of chemicals into Mexico, including enough precursors to produce over 700 million doses of methamphetamine and over 2 billion doses of fentanyl. Algredo Vazquez also transferred millions of dollars from the United States to chemical suppliers in China and India to procure the chemicals.
24,500 kilograms of methylamine hydrochloride purchased by Algredo Vazquez and his co-conspirators that was seized at the Port of Oakland, California, on June 8, 2021.
Algredo Vazquez was convicted at trial in July 2023 of conspiracy to manufacture and distribute methamphetamine for unlawful importation into the United States, conspiracy to distribute a List I chemical to manufacture methamphetamine for unlawful importation into the United States, and conspiracy to commit money laundering.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Administrator Anne Milgram of the Drug Enforcement Administration (DEA), and Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI) made the announcement.
The DEA Los Angeles Field Division and HSI Houston investigated the case, with assistance from the U.S. Marshals Service’s Investigative Operations Division. The U.S. Indo-Pacific Command Joint Interagency Task Force West also provided support for the investigatory efforts.
Trial Attorney Kate Naseef, Acting Assistant Deputy Chief Nhan Nguyen, and Acting Deputy Chief Kaitlin Sahni of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case.
The Justice Department’s Office of International Affairs contributed significantly to the investigation. The Justice Department thanks the Mexican Attorney General’s Office for their assistance in securing the conviction.
Operation Fraud Street Mafia Results Announced: Nine Arrested for Drug Trafficking and Committing More Than $550 Million in Attempted Tax FraudRead the Press Release
FRESNO, Calif. — As a result of Operation Fraud Street Mafia, a Kern Valley State Prison (KVSP) inmate has been charged in two separate federal complaints with drug trafficking and COVID-19 fraud. Seven defendants in California and Maryland are also charged in the two schemes.
Making the announcement today are U.S. Attorney Phillip A. Talbert, DEA Special Agent in Charge Brian M. Clark, Acting Special Agent in Charge Mark Remily of the FBI Sacramento Field Office, and IRS Criminal Investigation Oakland Field Office Acting Special Agent in Charge Michael Mosley.
“It is remarkable that a prison inmate coordinated with others on the outside to distribute over 100 pounds of methamphetamine into the community,” said U.S. Attorney Talbert. “But that apparently was not enough: he also conspired to pursue over half a billion dollars in federal tax credits that were meant to help struggling businesses during the COVID-19 pandemic. The U.S. Attorney’s Office is committed to combatting organized crime whether it is drug trafficking or theft of taxpayer money, and whether it is committed inside or outside of prisons.”
“This extensive drug trafficking investigation exposed a massive fraud operation being conducted from behind bars. As a prison inmate engineered a criminal network from coast to coast to peddle poison, law enforcement put their collective authorities together to dismantle this organization brick by brick,” said DEA Special Agent in Charge Clark. “Strong law enforcement partnerships built on action are an invaluable tool to ensure prison is no longer a place where violent criminals can operate without consequence.”
“I applaud the work of our California COVID-19 Fraud Strike Force and the hard-working prosecutors, agents, and analysts in the Eastern District of California who conducted this investigation,” said Michael C. Galdo, Department of Justice Director of COVID-19 Fraud Enforcement. “The Department will continue to work with our law enforcement partners around the country to uncover these schemes and hold those accountable who attempt to steal from the American people—whether they are hiding overseas or, like the allegations in this investigation, operating conspiracies from behind bars.”
“The criminal enterprises we battle today are more sophisticated than ever before,” said FBI Acting Special Agent in Charge Remily. “From interstate drug trafficking rings to massive fraud schemes aimed at stealing pandemic relief funds meant for struggling American businesses, the criminal conspiracies we face are complex and ever-changing. Despite these challenges, the dedicated men and women of the FBI and our local, state, and federal law enforcement partners will continue to diligently investigate these criminals. We will use every investigative technique at our disposal to disrupt their activities and bring them to justice.”
“Kristopher Thomas and his associates being in federal custody are a result of an incredibly detailed, multi-agency OCEDTF investigation and is a critical milestone in this case,” said IRS Criminal Investigation Acting Special Agent in Charge Mosley. “While incarcerated and with the help of his associates, Thomas is accused of leading a conspiracy to defraud taxpayers of over $550 million by falsely claiming COVID-19 Employee Retention Credits. CI agents specialize in financial investigations and remain on the front lines of fighting fraud.”
According to court documents, in August 2022, the DEA began a wiretap investigation into a methamphetamine trafficking operation that was run out of the Kern Valley State Prison in Delano, California, by inmate Kristopher Thomas, 36. Thomas has been incarcerated since December 2010 after being convicted of a gang-related first-degree murder. Thomas is a long-time member of the Main Street Mafia Crips, a street gang located in South Los Angeles.
Agents reviewed recorded jail calls placed by Thomas on a prison-issued tablet to numerous romantic partners, family members, and other individuals believed to be involved in drug trafficking. Agents also intercepted Thomas sending and receiving text messages about what appeared to be a tax fraud scheme. The intercepted text messages contained screenshots of tax information for many businesses with tax refund amounts. This triggered the DEA to request assistance from IRS Criminal Investigation and the FBI.
The drug trafficking and the tax fraud scheme are being prosecuted separately, and Thomas is charged in both cases.
The Methamphetamine Trafficking Scheme
According to court documents, Thomas was the head of a drug trafficking organization (DTO) that was responsible for the shipment of large quantities of methamphetamine to Hawaii, Oklahoma, Alabama, New Jersey, and elsewhere, as well as the smuggling of fentanyl into Kern Valley State Prison.
The investigation began after DEA agents identified Thomas as a source of methamphetamine supply in Hawaii. Subsequent recorded negotiations with Thomas resulted in the seizure in Oahu, Hawaii, of more than 90 pounds of methamphetamine. These seizures became the basis for the initiation of the wiretap investigation into multiple contraband cellphones in Thomas’s possession at KVSP.
The wiretap investigation revealed that Thomas orchestrated the interstate shipment of more than 54 pounds of methamphetamine to other states, including Oklahoma, Alabama, and New Jersey. Thomas was assisted by other gang associates. In addition, wire intercepts led to the seizure of an additional 40 pounds of methamphetamine, over 14 pounds of fentanyl, 9.5 pounds of heroin, and 8.5 pounds of cocaine. A half a pound of fentanyl was seized after it was smuggled into KVSP at Thomas’s direction.
Charged with Thomas in the drug trafficking scheme are Justin Damonte Mitchell, 31, of Los Angeles; Derrick D. Charles, 41, a former inmate at KVSP; Natasha Michelle Bailey, 44, of Bakersfield; Antrell Maeshack Sr., 41, of Santa Clarita; and Marie Joo-Yeon Choi, 29, of Los Angeles.
The IRS Employee Retention Credits Scheme
According to court documents, from January 2022 through at least July 2023, Thomas led a multi-million-dollar tax refund fraud scheme whereby Thomas and his co-conspirators filed payroll tax returns with the IRS that claimed Employee Retention Credits (ERC) for businesses that were not entitled to receive the credits so that they would receive large tax refunds.
Others charged with Thomas in the ERC scheme are Thomas’s mother, Kettisha Thompson-Dozier, 55, and her spouse Charmane Dozier, 44, both of Waldorf, Maryland, and Sharon Vance, 36, of Hawthorne, California.
During the COVID-19 pandemic, the ERC became available as a refundable federal tax credit for employers as a way to encourage businesses to keep employees on their payrolls. The credit was available to eligible employers that paid wages to some or all employees during the pandemic.
IRS records show Thomas and his co-conspirators filed hundreds of payroll tax returns that claimed over $550 million in tax refunds. The payroll tax returns were for fake business entities, actual businesses with overstated wages and numbers of employees, and businesses that were defunct at the time the payroll tax returns were filed. The defendants used the proceeds for improper personal expenditures. For example, in December 2022, Thomas celebrated his birthday by paying for his family members and friends to be driven to Las Vegas from Los Angeles, party for the night at a luxury penthouse, and then fly back to Los Angeles on a private jet.
The drug trafficking case is the product of an investigation by the DEA with assistance from the U.S. Marshals Service. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
The ERC tax fraud case is the product of an investigation by the IRS Criminal Investigation and the FBI. Assistant U.S. Attorneys Joseph Barton and Jeffrey Spivak are prosecuting the case.
The crimes charged today carry the following penalties: (1) conspiracy to distribute and to possess with intent to distribute methamphetamine and fentanyl and distribution of methamphetamine – both of which carry a 10-year mandatory minimum prison term and maximum penalty of life in prison; and (2) conspiracy to defraud the United States by submitting fraudulent ERC claims – which carries a maximum penalty of five years in prison.
Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit Justice.gov/OCDETF.
24mj7.crmp_.thomas.fsm_.pdf 24mj6.crcmp_.thomas.pdfOil and Gas Trader Convicted for Role in Foreign Bribery and Money Laundering SchemeRead the Press Release
A federal jury in Brooklyn convicted an oil and gas trader today for his role in a scheme to bribe Ecuadorean and Mexican government officials and to launder money to secure contracts worth hundreds of millions of dollars for his then-employer, Vitol Inc. (Vitol), the U.S. affiliate of the largest independent energy trading firm in the world.
According to court documents and evidence presented at trial, Javier Aguilar, 49, of Houston, paid more than $1 million in bribes to officials of Petroecuador, the Ecuadorean state-owned oil and gas company, and PEMEX Procurement International (PPI), a subsidiary of PEMEX, the Mexican state-owned oil and gas company, to obtain lucrative contracts for Vitol.
“Javier Aguilar bribed officials at state-owned oil and gas companies in Ecuador and Mexico using shell companies and sham invoices to obtain business for Vitol Inc., where he worked as an oil and gas trader,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “With today’s verdict, the jury has held him accountable for his role in a sophisticated bribery and money laundering scheme that netted Vitol hundreds of millions of dollars in contracts. Foreign bribery erodes the rule of law, disadvantages honest companies, and emboldens corrupt government officials. The Criminal Division will continue to vigorously pursue wrongdoers who bribe foreign officials and bring them to justice.”
“Today’s verdict represents another victory in this office’s commitment to rooting out corruption in the international marketplace,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendant and his co-conspirators sought to enrich themselves through criminal backroom deals. The people of Ecuador and Mexico deserved better and companies that play by the rules should know that the process is not rigged. The Justice Department and my office will continue to prioritize holding to account individuals who enrich themselves through bribery.”
“As demonstrated by this case, the Foreign Corrupt Practices Act has a long reach,” said Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office. “Aguilar’s egregious attempt to get away with bribing officials in Ecuador and Mexico failed, and he will now face tough penalties. I want to commend our partners in the Justice Department’s Criminal Division and at the U.S. Attorney’s Office for the Eastern District of New York for their close cooperation on this case.”
The trial evidence showed that, between 2015 and 2020, Aguilar was a trader in Vitol’s Houston office. As a part of the scheme, Aguilar and his co-conspirators agreed to bribe senior Ecuadorian officials to obtain a $300 million contract to purchase fuel oil for Vitol. Aguilar and his co-conspirators used another Middle Eastern state-owned entity to circumvent Petroecuador’s restrictions on contracts with private companies. In return for the promise and payments of bribes, the Ecuadorian officials then ensured that the Middle Eastern state-owned entity and Vitol were awarded the contract. Following the 2017 Ecuadorean presidential election, the officials who received bribes were replaced by new senior officials. To ensure continuity under the then-existing fuel oil contract and to obtain additional business, Aguilar and his co-conspirators agreed to bribe them as well.
To conceal the scheme, Aguilar and his co-conspirators used a series of fake contracts, sham invoices, and shell entities incorporated in Curacao, Panama, and Cayman Islands. Aguilar also used alias email accounts to communicate with his co-conspirators rather than his Vitol email.
The evidence at trial also demonstrated that Aguilar used the same system of shell entities and sham invoices to launder bribe payments to two officials at PPI. In total, Aguilar paid approximately $600,000 in bribes to these officials to obtain numerous contracts for Vitol to supply hundreds of millions of dollars of ethane gas to PEMEX.
The jury convicted Aguilar of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), violating the FCPA, and conspiracy to commit money laundering. He faces a maximum penalty of five years in prison on each of the FCPA counts and 20 years in prison on the money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Seven of Aguilar’s co-conspirators have pleaded guilty to their roles in the scheme and are awaiting sentencing. These individuals have agreed to forfeit more than $63 million.
In December 2020, Vitol admitted to bribing officials in Ecuador, Mexico, and Brazil in violation of the anti-bribery provisions of the FCPA. Vitol entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS) and the U.S. Attorney’s Office for the Eastern District of New York. As a part of the resolution, Vitol agreed to pay a combined $135 million in penalties as part of a coordinated resolution with the Justice Department, the Commodity Futures Trading Commission, and authorities in Brazil.
FBI Miami’s International Corruption Squad investigated the case.
Trial Attorney Clayton P. Solomon and Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell of the Fraud Section, Deputy Chief Adam J. Schwartz and Trial Attorney D. Hunter Smith of MLARS, and Assistant U.S. Attorneys Jonathan P. Lax, Matthew R. Galeotti, and Nick M. Axelrod for the Eastern District of New York are prosecuting the case. The MLARS Special Financial Investigations Unit and Justice Department’s Office of International Affairs also provided substantial assistance.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Northern Ohio Man Sentenced to Prison for Selling Fentanyl That Caused Six Overdoses, Including Two DeathsRead the Press Release
TOLEDO – Gerald Isom, age 49, of Toledo, Ohio, was sentenced to 300 months in prison by U.S. District Judge James R. Knepp, II, after earlier pleading guilty to two counts of distribution of fentanyl. Isom was also ordered to serve 3 years of supervised release and pay a $200 special assessment and $1,026 in restitution.
According to court documents, during the evening of December 26, 2019, Isom sold fentanyl to a group of five young men who believed they were receiving cocaine. The young men snorted the fentanyl, and all five overdosed. Three of the young men later woke up to find out that two members of group had died as a result of ingesting the fentanyl. That same evening, Isom sold fentanyl to another man who believed he was receiving cocaine. That man also overdosed, but survived after he was revived with Narcan.
The investigation was conducted by the Lucas County Sheriff’s Office and the Federal Bureau of Investigation. This case was prosecuted by Assistant U.S. Attorneys Robert Melching, Alissa Sterling, and Michael Freeman.
New York man charged with sexually exploiting Clinton County minorRead the Press Release
CINCINNATI – A New York man was arrested on federal charges alleging he traveled to Ohio to sexually exploit a minor victim.
Noah Knight, 30, of Yonkers, New York, is charged by criminal complaint with aggravated sexual abuse and production of child pornography. He was arrested in Yonkers yesterday.
According to the charging documents, Knight met the 11-year-old victim on Snapchat and came from New York to visit her. Knight allegedly had sex with the victim multiple times that day. Knight allegedly took the victim to Wilmington Cinemas and Walmart, and his CashApp account shows purchases made at both locations.
It is alleged that Knight, who is also known as Noah Matos, made video recordings of his sexual abuse of the child.
Knight appeared in federal court in New York today and will ultimately be transported to the Southern District of Ohio to face his charges.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Shawn Gibson, Acting Special Agent in Charge, Homeland Security Investigations (HSI) Detroit; and Wilmington Police Chief Ron Fithen announced the charges. Assistant United States Attorneys Megan Gaffney Painter and Kyle J. Healey are representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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New Orleans Man Who Encouraged Three-Year Old to Hold a Handgun Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – On February 21, 2024, United States District Judge Sarah S. Vance sentenced AARON HENDERSON, age 28, a resident of New Orleans, for violating the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to court records, HENDERSON pleaded guilty to possessing a firearm after being convicted of a felony. HENDERSON came to the attention of law enforcement after the New Orleans Police Child Abuse Unit received a video depicting HENDERSON in a residential room with a three-year-old male juvenile. HENDERSON was armed with a Draco 7.62 mm rifle, rapping lyrics to an unknown song. He encouraged the three-year-old to pick up a handgun located under some clothing on the bed, and the three-year-old picked up the handgun and began to waive it around. During all this time, HENDERSON was a convicted felon who was prohibited from possessing firearms.
Judge Vance sentenced HENDERSON to 37 months in prison and three years of supervised release. He was also ordered to pay a mandatory special assessment fee of $100.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation, and the New Orleans Police Department. The prosecution is being handled by Senior Litigation Counsel David Haller.
Monte Vista Man Sentenced to 30 Months After Conviction on Firearms ChargesRead the Press Release
DURANGO – The U.S. Attorney’s Office for the District of Colorado announces that Titus Naranjo, age 42, was sentenced to 30 months in federal prison and three years of supervised release for possessing firearms after previously being convicted of a felony. Naranjo will serve his federal sentence consecutively to a Colorado prison sentence for a felony drug distribution offense.
According to court documents, Naranjo was a well-known drug dealer in Monte Vista, Colorado. Naranjo had five prior drug-related convictions dating back to 2015 in Rio Grande County, including several felonies. In April 2021, law enforcement searched Naranjo’s residence, yielding a large amount of methamphetamine. In November of that same year, local law enforcement encountered Naranjo while executing a search warrant on a house to facilitate the arrest of another drug dealer and gang member. Officers found a Charter Arms .38 special revolver in one of Naranjo’s pockets, and 14 grams of methamphetamine in the other.
“Armed drug dealers present a unique danger to our communities,” said United States Attorney Cole Finegan. “Effective coordination between our local partners, like our cooperation with the Monte Vista Police Department and the ATF in this case can and do result in significant consequences and deterrence.”
"The Monte Vista Police Department will continue to pursue criminals in our communities who are dealing drugs and poisoning our citizens,” said Monte Vista Police Chief George Dingfelder. “Our commitment to the community is to use all available resources to hold these people accountable for their crimes.”
“Firearms illegally possessed by violent felons, especially when involved in drug activity, frequently lead to an increase of violent crime within our communities, said ATF Special Agent in Charge Brent Beavers. “Our commitment remains unwavering in targeting these individuals while working hand in hand with our law enforcement partners to reduce violent crime.”
The Monte Vista Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation in this matter. Assistant United States Attorney Jeffrey Graves handled the prosecution.
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.
Case No. 23-cr-00003-GPG-JMC
Missouri Woman Sentenced for $237,000 in Pandemic FraudsRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Friday sentenced a St. Peters, Missouri woman to a year and a day in federal prison for fraudulently obtaining $237,000 from pandemic assistance programs.
Regina Brand, 52, was also ordered to repay the money. Brand pleaded guilty in August to one felony count of wire fraud and admitted defrauding two pandemic relief programs. She submitted at least 12 fraudulent applications for rental assistance under the Missouri State Assistance for Housing Relief Program between Sept. 1, 2021 and at least June 30, 2022. The program was intended to provide emergency assistance to landlords and renters to prevent a wave of evictions during the COVID-19 pandemic. Brand received $96,825 in assistance.
Brand also submitted four fraudulent Paycheck Protection Program loan applications between April 1, 2020 and August 25, 2021, in the name of Angels Voices or Brand Construction. Brand falsely listed the average monthly payroll and number of employees employed by the companies, resulting in loans totaling $140,261.
The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman prosecuted the case.
Mississippi Tax Preparers Sentenced to Prison in False Tax Return ConspiracyRead the Press Release
A group of Mississippi tax return preparers were sentenced to prison yesterday for charges related to a conspiracy to prepare and file false tax returns for clients in Jackson, Mississippi.
Adam Earnest was sentenced to 100 months in prison, James Klish was sentenced to 50 months in prison and John Wells was sentenced to 15 months in prison. Each was also ordered by U.S. District Court Judge Daniel P. Jordan III for the Southern District of Mississippi to serve three years of supervised release and to pay restitution to the United States in an amount the court will later determine.
Two other conspirators, Christopher Rendell and Jonathan Barefoot, will be sentenced at a later date.
A federal jury convicted Earnest, Klish and Rendell of conspiring to defraud the United States by preparing false tax returns at Sunbelt Tax Service, a return preparation business that operated in Jackson. Earnest and Randell were also convicted of preparing such returns. Wells and Barefoot pleaded guilty before the trial to crimes related to preparing and filing false tax returns for clients.
According to court documents and evidence presented in court, Earnest, Randell, Klish, Barefoot and Wells worked at Sunbelt and conspired together to claim inflated tax refunds for clients by reporting false education credits, itemized deductions and business profits or losses on their clients’ tax returns. Over the years, they prepared thousands of fraudulent returns, causing over $3.5 million in tax loss to the IRS.
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 Patrick Elwell, Zachary Cobb and Mary Frances Richardson of the Tax Division prosecuted the case.
Mississippi Tax Preparers Sentenced to Prison in False Tax Return ConspiracyRead the Press Release
WASHINGTON – A group of Mississippi tax return preparers were sentenced to prison yesterday for charges related to a conspiracy to prepare and file false tax returns for clients in Jackson, Mississippi.
Adam Earnest was sentenced to 100 months in prison, James Klish was sentenced to 50 months in prison and John Wells was sentenced to 15 months in prison. Each was also ordered by U.S. District Court Judge Daniel P. Jordan III for the Southern District of Mississippi to serve three years of supervised release and to pay restitution to the United States in an amount the court will later determine.
Two other conspirators, Christopher Rendell and Jonathan Barefoot, will be sentenced at a later date.
A federal jury convicted Earnest, Klish and Rendell of conspiring to defraud the United States by preparing false tax returns at Sunbelt Tax Service, a return preparation business that operated in Jackson. Earnest and Randell were also convicted of preparing such returns. Wells and Barefoot pleaded guilty before the trial to crimes related to preparing and filing false tax returns for clients.
According to court documents and evidence presented in court, Earnest, Randell, Klish, Barefoot and Wells worked at Sunbelt and conspired together to claim inflated tax refunds for clients by reporting false education credits, itemized deductions and business profits or losses on their clients’ tax returns. Over the years, they prepared thousands of fraudulent returns, causing over $3.5 million in tax loss to the IRS.
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 Patrick Elwell, Zachary Cobb and Mary Frances Richardson of the Tax Division prosecuted the case.
Middleman Sentenced to 110 Months for Facilitating Bribes Between Nightclub and Bar Owners and a District Tax OfficialRead the Press Release
WASHINGTON – Anthony Merritt, 48, was sentenced today to 110 months in prison for facilitating bribes to a District tax official from business owners who wanted to evade tax obligations, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, D.C. Inspector General Daniel W. Lucas, and the D.C. Chief Financial Officer Glen Lee.
Merritt, of Capitol Heights, Maryland, played key roles in at least two sophisticated and long-term bribery conspiracies. For Vincent Slater, who formerly served in the D.C. Office of Tax and Revenue, Merritt handled communications with business owners and allowed Slater to maintain apparent distance from them as he fraudulently reduced their liabilities or intervened on their behalf within OTR. For business owners, Merritt ferried cash bribe payments to Slater. And for himself, Merritt took a cut—or sometimes times, all—of the bribe payments that drove the scheme. Through his actions, Merritt deprived the District of Columbia of at least $2.3 million.
Merritt was charged in two separate indictments, one for each of the separate conspiracies. In June 2023, a jury convicted Merritt of the bribery, conspiracy, and wire-fraud charges from the first indictment. In September 2023, Merritt pleaded guilty to the bribery, conspiracy, and wire-fraud offenses charged in the second indictment.
In addition to the prison sentence, U.S. District Judge Reggie B. Walton ordered Merritt to serve three years of supervised release and to pay restitution of $736,536.52 (of at least $200 per month), and to forfeit $581,378.77.
Slater pleaded guilty on bribery counts in June 2020 and admitted to causing a total loss of more than $3 million to the District. In addition, Slater admitted that typically, he and Merritt agreed to solicit bribe payments equaling approximately half of the amount the taxpayer sought to evade paying, and then to split the bribe proceeds between themselves. Slater resigned from OTR in December 2017, concluding both schemes, each of which had lasted over five years.
A former employee of the D.C. Department of Consumer and Regulatory Affairs, Merritt held himself out as a permit and licensing expediter and introduced the business owners to the scheme.
Judge Walton sentenced two business owners on January 25, 2024, for their respective roles in the separate but concurrent multiyear schemes. Andre De Moya, 51, of Temple Hills, Maryland, received 30 months in prison. Davoud Jafari, 72, of the District of Columbia, was sentenced to 24 months in prison.
The businesses that benefited from De Moya’s participation in the scheme included concert venue Echostage as well as downtown bars and nightclubs such as Eyebar (later renamed Eden), Ultrabar, L8 Lounge, and Barcode. Evidence at trial showed that De Moya also introduced additional business owners to Merritt, leading to parallel schemes involving restaurants Café Asia and Umaya and nightclub Muse Lounge. Jafari owned and operated Zeba Bar in Columbia Heights through a company called Gevani, Inc.
In announcing Merritt’s sentencing, U.S. Attorney Graves commended the work of the agencies who investigated the case, including the FBI’s Washington Field Office and the District of Columbia Office of the Inspector General, with substantial assistance by the District of Columbia Office of the Chief Financial Officer, Office of Integrity and Oversight. U.S. Attorney Graves also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Liliana Villamizar, Amanda Rhode, and Mariela Andrade, and former paralegal specialists Aisha Keys and Michon Tart.
Finally, Graves acknowledged the work of Assistant U.S. Attorneys Christine Macey, Emily Miller, and Timothy Visser, who prosecuted these cases through trial, and Assistant U.S. Attorney Molly Gaston and former AUSA Amanda Vaughn, who participated in the underlying investigations and earlier court proceedings.
Michigan Man Charged with Interstate Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. – A resident of Dearborn Heights, Michigan, has been indicted by a federal grand jury in Erie on federal charges relating to the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.
The three-count Indictment named Matthew James Chantelois, 45, as the sole defendant.
According to the Indictment presented to the Court, from in and around October 2023 to in and around January 2024, Chantelois used, persuaded, induced, and enticed a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. The Indictment also charges Chantelois with possessing and transporting child sexual abuse material in interstate commerce.
The law provides for a maximum total sentence of not less than 15 years and up to 60 years in prison, a fine of up to $750,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Pennsylvania State Police, New York State Police, and Dearborn Heights Police Department conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Miami physical therapist assistant convicted of over $2.6 million in fraudulent claimsRead the Press Release
MIAMI – On Feb. 16, a Miami federal jury convicted a local physical therapist assistant of conspiracy to commit health care fraud and wire fraud, and five counts of health care fraud after a week-long trial.
From May 2019 through February 2021, Tania Cesar, 55, of Hialeah, Florida, worked as a physical therapist assistant at Elite Therapy Group Inc. (Elite) in Miami, Florida. During this period, Cesar signed over 1,500 physical therapy notes for physical therapy treatments that she never provided to patients. Cesar’s false and fraudulent therapy notes led to over $2.6 million in claims billed to Blue Cross Blue Shield (BCBS). Several co-conspirators testified, including the owners of Elite, describing the payment agreement between Elite and Cesar. Cesar would come into the therapy clinic once or twice a week to sign the therapy notes but never treated patients. Some of Elite’s patients also testified, explaining that they had never received physical therapy treatment, nor they had ever met Cesar. Furthermore, Cesar signed false and fraudulent therapy notes for treatments she purportedly performed on dates when airline and U.S. Customs and Border Protection (CBP) records confirmed that she was out of the country.
In addition, Cesar was working full-time at another physical therapy clinic in Miami, where Cesar logged hours that, when added up with the hours for purported physical therapy she signed for in fraudulent therapy notes from Elite, suggested that she was working more than 24 hours on multiple days.
Moreover, Cesar had the same financial relationship with another clinic, Zion Medical (Zion), before she began signing false and fraudulent therapy notes at Elite. The owner of Zion testified that he and Cesar had the same agreement that Cesar had with the owners of Elite, Cesar would sign false and fraudulent therapy notes for treatments she never performed. These false and fraudulent therapy notes were also billed to BCBS as part of the scheme.
Sentencing is set for May 6 before U.S. District Senior Judge Robert N. Scola Jr.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office made the announcement.
FBI Miami investigated the case. Assistant U.S. Attorneys Joseph Egozi and Lindsey Lazopoulos Friedman are prosecuting it. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20259.
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Mexican National Sentenced to 25 Years for Leading Meth, Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for leading a conspiracy to distribute methamphetamine.
Panfilo Acuna, Jr., 29, a citizen of Mexico, was sentenced by U.S. District Judge Stephen R. Bough on Thursday, Feb. 22, to 25 years in federal prison without parole. The court also ordered Acuna to forfeit to the government $550,603, which represents the proceeds he received from the drug-trafficking conspiracy.
On Oct. 13, 2022, Acuna pleaded guilty to conspiracy to distribute methamphetamine and heroin, conspiracy to commit money laundering, 42 counts of money laundering, and one count of international money laundering.
Acuna admitted that he was the leader of a drug-trafficking organization that distributed methamphetamine and heroin throughout the Kansas City metropolitan area from 2016 until his arrest in 2020. Acuna was the primary source of methamphetamine and heroin distributed to a dozen co-defendants in this case. Acuna also admitted he distributed approximately 250 pounds of methamphetamine and laundered more than $500,000 in drug-trafficking proceeds.
Acuna received methamphetamine and heroin from sources in California and Mexico. Acuna coordinated shipments of bulk methamphetamine and heroin from California to his associates in the Kansas City metropolitan area. Acuna utilized different methods to transport drugs from California to Kansas City, including drug couriers, parcel carriers, and commercial delivery services where drugs would be hidden in furniture and other consumer items. The drugs would then be distributed to a network of street-level dealers in this area who then sold the drugs to other dealers and addicts.
Acuna conducted 1,046 financial transactions between 2015 and 2020, nearly all of them to individuals in California and Mexico, that were related to his drug trafficking. The aggregate amount of money deposited was $305,109. Other wire transfers were also conducted that totaled $246,494. Additionally, Acuna transferred $20,060 to individuals in Mexico through 22 money transfers as part of the conspiracy. The financial investigation revealed his associates also laundered money through a variety of means.
On Oct. 1, 2020, the FBI and the Jackson County Drug Task Force executed a search warrant at Acuna’s apartment. Investigators recovered 19 firearms, thousands of rounds of ammunition, magazines, drug ledgers, 10 grams of heroin, and nearly three kilograms of methamphetamine.
Acuna is the ninth defendant to be sentenced in this case. Two co-defendants have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Matthew Moeder and Megan A. Baker. It was investigated by the FBI and the Jackson County Drug Task Force.
Organized Crime and Drug Enforcement Task Force
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.
Mexican National Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
Jackson, Miss. – A Mexican national, residing in the United States illegally, pled guilty to possession of a firearm by a prohibited person.
According to court documents, Joel Terrazas Olvera, 51, was found in possession of a firearm by a Rankin County Sheriff’s Deputy on September 19, 2023 during a traffic stop on a vehicle in which Olvera was riding as a passenger. A federal grand jury indicted Olvera for possession of a firearm by a prohibited person.
Olvera is scheduled to be sentenced on May 9, 2024, and faces a maximum penalty of 15 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee, Special Agent in Charge Eric DeLaune of Homeland Security Investigations, and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
Assistant U.S. Attorney Samuel Goff is prosecuting the case.
This case is being 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.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to almost three months in federal prison.
Ramon Garcia-Cruz, age 41, a citizen of Mexico illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a December 18, 2023, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Garcia-Cruz admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Garcia-Cruz was first removed from the United States in October 2014. Garcia-Cruz was also deported in March 2015 following his February 2015 conviction in the United States District Court for the Western District of Texas for illegal entry into the United States. On November 14, 2023, immigration officials learned Garcia-Cruz had illegally returned to the United States and found Garcia-Cruz at the Linn County Jail following his arrest on state charges.
Garcia-Cruz was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Garcia-Cruz was sentenced to 86 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Garcia-Cruz is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-85.
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