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23 February 2024
Clear Lake Man Charged with Possession of a Firearm by a Prohibited PersonRead the Press Release
Michael Ryan Mikkelson, age 37, from Clear Lake, Iowa, has been charged with one count of possession of a firearm by a felon and person convicted of domestic violence. The charges are contained in an Indictment filed on February 14, 2024, in United States District Court in Sioux City.
The Indictment alleges that from March 1, 2023, through October 3, 2023, Mikkelson knowingly possessed a firearm and ammunition having been previously convicted on four occasions of crimes punishable by imprisonment for a term exceeding one year and also convicted of a misdemeanor crime of domestic violence.
If convicted, Mikkelson faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
Mikkelson appeared today in federal court in Sioux City and was held without bond. Mikkelson’s next appearance for a detention hearing is set for February 28, 2024.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is being prosecuted by Assistant United States Attorney Kevin C. Fletcher and was investigated by the Clear Lake Police Department, Cerro Gordo County Sheriff’s Office, Manly Police Department, Worth County Sheriff’s Office, Iowa State Patrol, Cerro Gordo County Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms & Explosives, and United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-03009.
Follow us on Twitter @USAO_NDIA.
Chicago Man Convicted on Federal Carjacking and Firearm ChargesRead the Press Release
CHICAGO — A Chicago man has been convicted in federal court of carjacking a vehicle at gunpoint on the city’s West Side and firing a handgun while attempting to carjack another vehicle.
The jury in U.S. District Court in Chicago on Tuesday convicted KIAR EVANS, 24, on all four counts against him, including one count of carjacking, one count of attempted carjacking, one count of brandishing a firearm during a crime of violence, and one count of illegal possession of a firearm by a previously convicted felon.
The convictions are punishable by a mandatory minimum sentence of seven years in federal prison and a maximum of life. U.S. District Judge Martha M. Pacold has not yet set a sentencing date.
The guilty verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Paige A. Nutini and Jimmy L. Arce.
According to evidence presented at the week-long trial, the carjacking and attempted carjacking occurred within minutes of each other on the afternoon of May 20, 2021. In the attempted carjacking, Evans approached a Chevrolet Impala near the intersection of Independence Boulevard and Congress Parkway in Chicago and fired shots through a window while attempting to get inside. The driver of the Impala was able to drive away from the scene.
Evans then approached the driver-side window of a Nissan Altima, pointed a firearm at the driver and demanded that the driver exit the vehicle. The victim complied and Evans drove off in the Nissan. A short time later, Evans was driving the stolen vehicle when he was involved in a multi-vehicle crash at the intersection of Harrison Street and Ogden Avenue in Chicago. Chicago Police officers arrested Evans and discovered a loaded semi-automatic handgun in his possession. As a previously convicted felon, Evans was not lawfully allowed to possess a firearm.
Bristol Man Sentenced on Drug, Firearms ChargesRead the Press Release
ABINGDON, Va. – A Bristol, Virginia man, who possessed approximately 100 firearms while conspiring to distribute methamphetamine, was sentenced today to 10 years in federal prison. In addition, Stout is forfeiting all of the firearms and ammunition he possessed.
Zachary Stout, 26, pled guilty in September 2023 to one count of conspiracy to possess with the intent to distribute five grams or more of methamphetamine, one count of possession with the intent to distribute five grams or more of methamphetamine, and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on April 19, 2022, law enforcement executed a search warrant at the residence of Robert Hockett in Bristol, Virginia. During that search, law enforcement recovered more than 1,600 grams of nearly pure methamphetamine, 135 grams of heroin, 40 pills of fentanyl, approximately $28,000 in cash, firearms, ammunition, and two cellphones.
In addition, investigators learned that Hockett was being supplied methamphetamine from Tyshawn Blackwell and Zachary Stout.
On July 27, 2023, law enforcement executed a search warrant at Stout’s residence in Bristol, Virginia. During that search, authorities recovered approximately 30 grams of methamphetamine, digital scales, four cell phones, and approximately 100 firearms—many of which were loaded. The firearms included semiautomatic rifles, pistols, and three sawed-off shotguns. Numerous high-capacity magazines and more than 3,300 rounds of ammunition were also seized.
In August 2023, Hockett was sentenced to 127 months in prison for his role in the conspiracy. Blackwell is awaiting sentencing in the Eastern District of Tennessee.
United States Attorney Christopher R. Kavanaugh and Craig B. Kailimai, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement.
The investigation of the case was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the Bristol, Virginia Police Department.
Assistant U.S. Attorney Whit D. Pierce is prosecuting the case for the United States.
Bridgeport Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ALEXIS A. VALLEJO, also known as “Boobie” and “Boobie Porter,” 33, of Bridgeport, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to unlawful possession of a firearm by a felon.
According to court documents and statements made in court, on December 29, 2021, Vallejo attempted to flee from Bridgeport Police officers. Officers apprehended Vallejo and found him in possession of a loaded SCCY 9mm semiautomatic handgun.
Vallejo’s criminal history includes felony convictions in state court for firearm possession, robbery, larceny, and failure to appear offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Dooley scheduled sentencing for June 4, at which time Vallejo faces a maximum term of imprisonment of 15 years.
Vallejo has been detained since his federal arrest on June 30, 2022.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Ross Weingarten and Karen L. Peck through Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Boynton Beach man found guilty of threatening a member of CongressRead the Press Release
MIAMI – On Feb. 22, following a two-day trial, a federal jury in Ft. Lauderdale convicted a man for calling the office of a Congress member in Washington, D.C. and threatening to kill the member of Congress and another.
On Jan. 29, 2023, Frank Stanzione, 53, of Boynton Beach, Florida, made a telephone call from his residence in Boynton Beach to the office of a member of the United States House of Representatives. Stanzione left a voice message for the member that stated the following:
[Victim 1] you fat f------ piece of s--- f-----. You better watch your mother f------ back because I’m gonna bash your mother f------ f----- head in with a bat until your brains are splattered across the f------ wall. You lying, disgusting, disgraceful, mother f------ f-----. You mother f------ piece of s---. You’re gonna get f------ murdered you goddamn lying piece of garbage. Watch your back you fat, ugly, piece of s---. You and [Victim 2] are dead.
The Congress member’s chief of staff reported the message to the United States Capitol Police (USCP) the next morning. The USCP began investigating the voice message as a threat and determined that it was made from a telephone number assigned to Stanzione.
On Jan. 31, 2023, USCP special agents went to the address associated with the telephone number and interviewed Stanzione. USCP confirmed that Stanzione had left the voice message for the Congress member. Stanzione found the telephone number on an online search engine.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Chief J. Thomas Manger of USCP announced the guilty verdict.
USCP – Threat Assessment Section investigated the case. Assistant U.S. Attorney Mark Dispoto and Special Assistant U.S. Attorney Joe Wheeler are prosecuting it.
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-80064.
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Bellingham man sentenced to 12 years in prison for attempted enticement of a minor and possession of images of child sexual abuseRead the Press Release
Seattle – A 28-year-old Bellingham, Washington, man was sentenced today in U.S. District Court in Seattle to 12 years in prison for possession of child pornography and attempted enticement of a minor, announced U.S. Attorney Tessa M. Gorman. Clayton Harker was arrested in December 2022, when he arrived at a Bellingham hotel believing he was going to sexually assault an 8-year-old girl. The ‘girl’ in this case was fictitious and Harker had been communicating with undercover Homeland Security Investigation agents.
At today’s sentencing hearing Judge Richard jones said, “The court finds these cases extremely troubling. Fictitious individual or not, you had a clear thought in your mind to act on your desires.”
According to records in the case, Harker came to the attention of law enforcement as they were investigating a different snapchat user who was pressuring young people for explicit images, claiming he wanted to pay them as “models.” Based on the communication between that subject and the person later identified as Harker, law enforcement began investigating his online activity. In November 2022, Harker began communicating with an undercover agent who claimed to have an 8-year-old niece Harker could molest. Harker not only communicated with that undercover agent, he also communicated with another agent who posed as the 8-year-old girl. Harker arrived at the hotel with materials to molest the child and video the assault. Harker was arrested before he even entered the hotel.
In asking the court to sentence Harker to 30 years in prison, Assistant United States Attorney Matthew Hampton noted that Harker told agents that he regularly solicited minors to send him sexually explicit imagery over the internet and would use threats and extortion when necessary to induce these children to send him that imagery. “Simply put, Harker has cut a swath of destruction across the lives of vulnerable minors whose only mistake was to cross paths with a predator. The threat he poses is real. And neutralizing that threat will require incapacitation through lengthy confinement followed by close supervision for the remainder of Harker’s life.”
Harker will be on 15 years of supervised release following prison and will be required to register as a sex offender.
The case was investigated by Homeland Security Investigations (HSI) as part of the Internet Crimes Against Children Task Force based at the Seattle Police Department. The Whatcom County Sheriff’s Office also assisted.
The case was prosecuted by Assistant United States Attorney Matthew Hampton.
Armed Carjacking Added to a 55-Count Superseding Indictment Charging Members of the Violent KDY Drug CrewRead the Press Release
WASHINGTON – A superseding indictment adds 22 new charges – including armed carjacking, armed robberies, and weapons offenses involving machineguns –against the alleged core members of the violent Kennedy Street drug trafficking organization. The superseding indictment also names a 17th co-defendant, Adebayo Adediji Green, 29, of Hyattsville, MD., who was arrested on February 22, 2024.
The superseding indictment charges defendants Keion Michael Brown, 20, and Jovan “Chewy” Williams, 19, in a November 17, 2023, spree of armed carjackings and robberies; defendants Tristan Ware and Keion Brown with illegal possession of a machine gun in furtherance of drug trafficking; defendants Khali Brown, Aaron Mercer, Angel Suncar, and David Penn with illegal possession of firearms; defendants Brown, Ware, and David Penn with possession with intent to deliver marijuana; defendants Penn, Aaron Mercer, and Angel Suncar with possession with intent to deliver cocaine; and defendant Adebayo Adediji Green with conspiracy to distribute cocaine base and marijuana, and illegal possession of a firearm in furtherance of drug trafficking.
Defendants Warren Fields and Antonio Reginald Bailey previously pleaded guilty. A chart of the remaining defendants and their charges can be found below.
According to the original indictment, KDY members operated open-air drug markets in the 100-1200 blocks of Kennedy Street in Northwest, as well as surrounding streets. The organization’s members are charged with conspiring to distribute fentanyl, oxycodone, cocaine base, and marijuana, and using firearms, including fully automatic weapons, to enforce and protect the crew’s territory, including through intimidation and acts of violence.
The original indictment further alleges that KDY crew members conspired to establish shell companies to launder their illegal proceeds. During the investigation, law enforcement seized more than 40 firearms (including eight suspected machineguns).
The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is being investigated by the Metropolitan Police Department, the DEA’s Washington Division, ATF’s Washington Field Division, with assistance from FBI’s Washington Field Office, and the IRS-Criminal Investigation Washington, D.C. Office. It is being prosecuted by Assistant U.S. Attorneys Matthew W. Kinskey and Sitara Witanachchi, of the of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by former Special Assistant United States Attorney Brian Lynch.
KDY DEFENDANTS
NAME
AGE
CHARGES
Kenneth Ademola Olugbenga
27
Conspiracy to Distribute and Possess with Intent to Distribute One Hundred Kilograms or More of Marijuana, Four Hundred Grams or More of Fentanyl, and a Mixture and Substance Containing a Detectable Amount of Cocaine Base, and Detectable Oxycodone
Unlawful Possession with Intent to Distribute Marijuana (2 Counts)
Using, Carrying, and Possessing a Firearm During a Drug Trafficking Offense (2 Counts)
Unlawful Possession of a Firearm by a Person Convicted of a Crime Punishable by Imprisonment Exceeding One Year (2 Counts)
Conspiracy to Commit Money Laundering (2 Counts)
Khali Ahmed Brown, AKA
“Migo Lee”22
Conspiracy to Distribute and Possess with Intent to Distribute 100 Kilograms or More of Marijuana, 400 Grams or More of Fentanyl, and Detectable Oxycodone
Assault with a Dangerous Weapon and Aiding and Abetting (1 Count)
Possession with Intent to Distribute Fentanyl (2 Counts)
Possession with Intent to Distribute Marijuana (3 Counts)
Using, Carrying, and Possessing a Machinegun and Firearm During a Drug Trafficking Offense (3 Counts)
Unlawful Possession of a Machinegun (2 Counts)
Possession of a Firearm with an Obliterated Serial Number (2 Counts)
Keion Michael Brown
20
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, and a Mixture and Substance Containing a Detectable Amount of Cocaine Base, and Detectable Oxycodone
Using, Carrying, and Possessing a Firearm During a Drug Trafficking Offense (4 Counts)
Possession with Intent to Distribute Marijuana (2 Counts)
Armed Robbery, Aiding and Abetting
Possession of a Firearm During the Commission of a Crime of Violence (2 Counts)
Carjacking while Armed and Aiding and Abetting
Unlawful Possession with Intent to Distribute Oxycodone
Unlawful Possession of a Firearm by an Individual Under Felony Indictment
Using, Carrying, and Possessing a Machinegun in Furtherance of a Drug Trafficking Offense
Miasiah Jamal Brown, AKA “Michael Jamal Crawford”
21
Conspiracy to Distribute and Possess with Intent to Distribute 100 Kilograms of Marijuana, 400 Grams of Fentanyl, a Mixture and Substance Containing a Detectable Amount of Cocaine Base, and Detectable Oxycodone
Using, Carrying, and Possessing a Firearm in Furtherance of a Drug Trafficking Offense
Using, Carrying, and Possessing a Firearm During a Drug Trafficking Offense
Tristan Miles Ware, AKA “Greedy”
23
Conspiracy to Distribute and Possess with Intent to Distribute 100 Kilograms of Marijuana, 400 Grams of Fentanyl, and a Mixture and Substance Containing a Detectable Amount of Cocaine Base
Possession with Intent to Distribute Marijuana (3 Counts)
Unlawful Possession of a Firearm by a Person Convicted of a Crime Punishable by Imprisonment Exceeding One Year (2 Counts)
Using, Carrying, and Possessing a Firearm During a Drug Trafficking Offense (2 Counts)
Using, Carrying, and Possessing a Machinegun in Furtherance of a Drug Trafficking Offense
Jovan Williams, AKA “Choo Choo” and “Chewy”
19
Conspiracy to Distribute and Possess with Intent to Distribute 100 Kilograms of Marijuana, 400 Grams of Fentanyl, and a Mixture and Substance Containing a Detectable Amount of Cocaine Base
Unlawful Possession with Intent to Distribute Marijuana (2 Counts)
Using, Carrying, and Possessing a Machinegun and Firearm During a Drug Trafficking Offense (2 Counts)
Unlawful Possession of a Machinegun (2 Counts)
Unlawful Shipment, Transportation, and/or Receipt of a Firearm and Ammunition to Commit a Felony Offense
Armed Robbery and Aiding and Abetting (2 Counts)
Possession of a Firearm During the Commission of a Crime of Violence
Carjacking while Armed and Aiding and Abetting
Possession of a Firearm During the Commission of a Crime of Violence
Juwan Demetrius Clark, AKA “Squirrel” and “Juan Clark”
23
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, 40 Grams or Fentanyl, and a Mixture and Substance Containing a Detectable Amount of Cocaine Base
Conspiracy to Commit Money Laundering (2 Counts)
Aaron Deandre Mercer, AKA “Curby,”
27
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, 400 Grams or More of Fentanyl, and a Mixture and Substance Containing a Detectable Amount of Cocaine Base
Unlawful Possession with Intent to Distribute 40 Grams or More of Fentanyl (2 Counts)
Unlawful Possession with Intent to Distribute Cocaine Base
Using, Carrying, and Possessing a Firearm During a Drug Trafficking Offense
David Penn, AKA “Turtle”
30
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, 40 Grams or Fentanyl, and a Mixture and Substance Containing a Detectable Amount of Cocaine Base
Unlawful Possession with Intent to Distribute 40 Grams or More of Fentanyl (2 Counts)
Unlawful Possession with Intent to Distribute Marijuana (2 Counts)
Unlawful Possession with Intent to Distribute Cocaine Base
Using, Carrying, and Possessing a Machinegun in Furtherance of a Drug Trafficking Offense (2 Counts)
Using, Carrying, and Possessing a Firearm in Furtherance of a Drug Trafficking Offense
Engaging in the Business of Dealing in Firearms without a License (2 Counts)
Unlawful Possession of a Firearm by a Person Convicted of a Crime Punishable by Imprisonment for a Term Exceeding One Year (2 Counts)
Angel Enrique Suncar, AKA Coqui”
29
Conspiracy to Distribute and Possess with Intent to Distribute Marijuana, 40 Grams or Fentanyl, and a Mixture and Substance Containing a Detectable Amount of Cocaine Base
Unlawful Possession with Intent to Distribute Cocaine Base
Unlawful Possession of a Firearm by a Person Convicted of a Crime Punishable by a Term Exceeding One Year
Carrying and Possessing a Firearm During a Drug Trafficking Offense
Adebayo Adediji Green
29
Using, Carrying, and Possessing a Firearm During a Drug Trafficking Offense
Defendant Cameron Reid is from Falmouth, VA; and defendant Green is from Hyattsville, MD. The 15 remaining defendants are from Washington, D.C.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Altamont Man Accused of Unlawful Gun Possession and ManufacturingRead the Press Release
EAST ST. LOUIS, Ill. – An Effingham County man is facing criminal charges in southern Illinois for illegally possessing firearms even though he’s prohibited under federal law.
James R. Kraus, II, 42, is facing one count of possession of a firearm by a prohibited person, one count of illegal possession of a machine gun, two counts of possession of an unregistered firearm and one count of illegal importation of a firearm.
"Individuals with domestic violence and other abusive convictions cannot lawfully possess firearms due to the increased safety risks to our communities, and offenders will be held accountable," said U.S. Attorney Rachelle Aud Crowe.
According to the charging document, Kraus is accused of possessing the firearms in November 2023. Due to a prior domestic violence conviction, Kraus is unable to legally possess firearms. The Government alleges that Kraus illegally possessed dozens of firearms including an automatic weapon, multiple short-barreled rifles and silencers.
“Individuals convicted of Domestic violence cannot possess firearms and will face serious consequences for manufacturing, possessing, or importing these firearms. Privately Made Firearms (PMFs) are commonly referred to as ghost guns and can be difficult to trace. Manufacturing devices to convert firearms to automatic weapons is a tremendous threat to our communities,” stated Kansas City Field Division, Special Agent in Charge, Bernard Hansen. “Identifying and prosecuting persons unlawfully converting and possessing machine guns, as well as unregistered silencers, is a focus of the ATF and persons will face serious consequences for possessing them.”
As outlined in the indictment, the Government is seeking forfeiture of Kraus’ nine commercially manufactured firearms, seven silencers and thousands of rounds of ammunition. In addition, Kraus is accused of manufacturing unregistered ghost guns with a 3D-printer and if convicted must forfeit 11 privately made firearms including four pistols and seven rifles.
“ISP is committed to ensuring those who are prohibited from possessing a firearm don't have guns illegally and we will continue to work with our federal partners to protect the public and combat gun trafficking,” said ISP Director Brendan F. Kelly.
The Government is also seeking forfeiture of Kraus’ computer, 3D-printer and other firearm manufacturing tools.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Kraus could face up to 15 years’ imprisonment and/or fines up to $250,000.
ATF is leading the investigation with assistance from ISP, HSI, U.S. Customs and Border Protection and U.S Postal Inspection Service. Assistant U.S. Attorney John Trippi is prosecuting the case.
Alleged Mastermind of $5 Million Unemployment Fraud Scheme Extradited from RomaniaRead the Press Release
NEWS RELEASE SUMMARY – February 23, 2024
SAN DIEGO – David Constantin, alleged mastermind of a scheme to steal more than $5 million in California unemployment benefits intended to help workers affected by the pandemic, appeared in federal court today following his extradition Monday to the United States from Romania.
At today’s hearing, U.S. Magistrate Judge Michael S. Berg ordered Constantin detained pending trial. The next hearing is scheduled for April 1, 2024, at 1:30 p.m. before U.S. District Judge Larry A. Burns.
Constantin was indicted by a federal grand jury in October 2023 along with 13 others. In addition to the four counts of wire fraud conspiracy and wire fraud charges, the indictment also alleges that Constantin transmitted more than $128,000 in fraud proceeds to associates in Romania.
Constantin was apprehended by Romanian authorities at the request of the United States on November 14, 2023. The United States also seized valuable assets connected to Constantin, and co-Defendants in this case, Eduard Buse (D6), and Florentina Sima (D7).
The following agencies provided critical assistance in securing Constantin’s arrest and extradition: Directorate for Combating Organized Crime (DCCO) - Service for Countering of Organized Criminal Groups; Pitești Brigade for Combating Organized Crime (BCCO Pitesti); Teleorman County Service for Countering Organized Crime; Romanian Gendarmerie Battalion; Romanian Ministry of Justice; and Romanian Criminal Investigative Directorate - Fugitive Unit.
“We thank Romanian authorities for their assistance in securing Mr. Constantin’s arrest and for their continued efforts in support of this case.”, said U.S. Attorney Tara McGrath.
This case is being prosecuted by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie Chu. The Justice Department’s Office of International Affairs provided substantial assistance to secure the arrest and extradition from Romania of Constantin.
DEFENDANT Case Number 23CR2090-LAB
David Constantin Age: 28 Arges County, Romania
aka Vlad Alexandru
SUMMARY OF CHARGES
Title 18, U.S.C. § 1349 — Conspiracy to Commit Wire Fraud
Title 18, U.S.C. § 1343 — Wire Fraud
Maximum penalty: Thirty years in prison, $1 million fine
Title 18 U.S.C. § 1956(a)(2)(A) — Laundering of Monetary Instruments
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Police Department Economic Crimes Unit
IRS Criminal Investigation
California Employment Development Department Investigative Division
U.S. Department of Labor Office of Inspector General
U.S. Department of Homeland Security
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Alabama Man Sentenced to over 30 Years in Prison for Methamphetamine and Fentanyl ConspiracyRead the Press Release
Gulfport, Miss. – A Monroeville, Alabama man was sentenced to 397 months in federal prison for conspiracy to possess with intent to distribute methamphetamine and fentanyl.
Curtis Navelle Harrison, 46, was sentenced on February 21, 2024, in U.S. District Court in Gulfport.
According to court documents, on July 23, 2021, as part of an ongoing investigation, law enforcement officers conducted a controlled purchase of methamphetamine from Louis Booker, Jr. at a residence in Moss Point, Mississippi. Three days later, law enforcement officers executed a search warrant on the residence. During the execution of the search warrant, Booker, Harrison, another adult male, and a minor child fled from the residence. When the individuals were apprehended, officers located a $10.00 bill from the prior buy on Harrison’s person. Approximately 200 grams of methamphetamine, firearms, and fentanyl were also recovered from the residence. Subsequent investigation resulted in the discovery of text messages and social media messages between Harrison and Booker, which demonstrated that they were involved in a conspiracy to possess with intent to distribute methamphetamine and fentanyl.
According to the U.S. Drug Enforcement Administration, fentanyl is approximately 100 times more potent than morphine and 50 times more potent than heroin. The DEA reports that two milligrams of fentanyl can be lethal, and one kilogram of fentanyl has the potential to kill 500,000 people. More facts on fentanyl can be found at https://www.dea.gov/resources/facts-about-fentanyl and https://www.dea.gov/resources/facts-about-fentanyl.
On June 14, 2023, a jury in federal court found Harrison guilty of conspiracy to possess with intent to distribute methamphetamine and fentanyl.
In imposing sentence, the court noted Harrison’s prior criminal history. Specifically, the Court pointed to the fact that at the time of his commission of this offense, Harrison was out on parole from a life sentence in Alabama. According to documents submitted to the court, Harrison was sentenced to life in Alabama based on his prior convictions for attempted murder and 1st degree armed robbery of an undercover police officer.
U.S. Attorney Todd W. Gee and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
The Bureau of Alcohol Tobacco, Firearms and Explosives and South Mississippi Metro Enforcement Team investigated the case.
Assistant U.S. Attorneys Jonathan Buckner and Lauren Dick prosecuted the case with support from Assistant U.S. Attorney Gaines Cleveland.
15 Charged with Fentanyl, Methamphetamine, Cocaine, Firearms, and Money Laundering OffensesRead the Press Release
KNOXVILLE, Tenn. – On February 21, 2024, a federal grand jury in Knoxville, Tennessee, returned a 19-count indictment against 15 defendants—Todd M. Evans, 31, and Joshua M. Vanriette, 38, both of Pontiac, MI; Gary L. Shadden, 70, Henri L. Ewing, 34, James M. Pass, 56, and Traythan W. Edwards, 23, all of Rockwood, TN; Robert S. Fugate, 53, and Charlotte A. Brown, 53, both of Spring City, TN; Amber B. Jackson, 33, Nicholas J. Eskridge, 46, Christopher C. Gilmore, 52, and Kristy L. Murray, all of Harriman, TN; and Bobby L. Robinette, 44, Liberty Warfield, 40, and Misty Walden, 46, all of Kingston, TN.
According to the indictment, all defendants are charged with conspiracy to distribute fentanyl, multiple defendants are charged with conspiracy to distribute methamphetamine and cocaine as well as other fentanyl, methamphetamine, and cocaine offenses, Evans, Vanriette, Ewing, and Pass are each charged with firearms offenses, and Evans, Vanriette, and Jackson are charged in a conspiracy to commit money laundering.
Jackson, Walden, Shadden, Brown, Gilmore, Edwards, and Warfield had their initial appearances on February 22, 2024, before the Honorable Judge Jill E. McCook, United States Magistrate Judge, and all entered pleas of not guilty. The remaining defendants will have their initial appearances at a later date. This case has been set for trial on April 30, 2024, before the Honorable Katherine A. Crytzer, United States District Judge, in the United States District Court in Knoxville.
If convicted, Evans, Vanriette, and Ewing each face a mandatory minimum term of 20 years and up to life in prison and other penalties; Jackson, Murray, and Pass each face a mandatory minimum of 15 years and up to life in prison and other penalties; Eskridge and Robinette each face a mandatory minimum of 10 years and up to life in prison and other penalties; Shadden, Walden, and Gilmore each face a mandatory minimum term of 5 years and up to 40 years in prison and other penalties; and Edwards and Warfield each face up to 20 years in prison and other penalties.
U.S. Attorney Francis M. Hamilton, III, of the Eastern District of Tennessee; Federal Bureau of Investigation (FBI) Special Agent in Charge Joseph E. Carrico; and Special Agent in Charge Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
This indictment is the result of an investigation led by the FBI, and the ATF, with significant support from the Roane County Sheriff’s Office, Tennessee Bureau of Investigation, Harriman Police Department, Rhea County Sheriff’s Office, Rockwood Police Department, as well as other partnering agencies to include the Appalachia High Intensity Drug Trafficking Area Task Force.
Assistant U.S. Attorney Brent N. Jones will represent the United States.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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22 February 2024
Zaquikon T. Roy Arraigned on New Drug and Gun ChargesRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Zaquikon T. Roy, 35, of Brooklyn, New York, was arraigned on February 20, 2024, in U.S. District Court in Burlington, Vermont on a superseding indictment charging the following: conspiracy to distribute cocaine base, fentanyl, and 500 grams or more of cocaine; two counts of distribution of cocaine base; one count of possession with intent to distribute cocaine and cocaine base; two counts of possession of a firearm in furtherance of a drug trafficking crime; one count of felon in possession of a firearm; and one count of discharge of a firearm in furtherance of a drug trafficking crime. The count for discharge of a firearm relates to a shooting that occurred in Leicester, Vermont on June 4, 2023. Roy waived his appearance at his arraignment and pleas of not guilty were entered on his behalf. Roy was previously detained pending trial and is still detained.
If convicted of these offenses, Roy faces a mandatory minimum sentence of 25 years imprisonment and a maximum sentence of life imprisonment, and a fine of up to $5,000,000. The actual sentence, however, would be determined by the District Court with guidance from the advisory Federal Sentencing Guidelines and the statutory sentencing factors. The United States Attorney emphasizes that the charges in the superseding indictment are merely accusations, and that Roy is presumed innocent unless and until proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Vermont State Police.
The United States is represented in this matter by Assistant U.S. Attorneys Paul J. Van de Graaf and Wendy L. Fuller. Roy is represented by Chandler Matson, Esq.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Woman charged with murder at U.S. Army military installationRead the Press Release
TOPEKA, KAN. – A Kansas woman has been charged through criminal complaint for a shooting death that took place on a federal military installation in Junction City, Kansas.
According to court documents, Margaret E. Shafe, 30, of Fort Riley is charged with murder in the second degree for shooting and killing Greg Shafe on February 19, 2024, while on Fort Riley.
The defendant made her initial court appearance February 22, 2024, before U.S. Magistrate Judge Rachel E. Schwartz of the U.S. District Court for the District of Kansas. If convicted, she faces a maximum penalty of life in prison.
The Department of Army Criminal Investigation Division and the Federal Bureau of Investigation (FBI) are investigating the case.
Assistant U.S. Attorney Stephen A. Hunting and Special Assistant U.S. Attorney Robin Graham are prosecuting the case.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Wire Fraud Indictment Against Garland, Nebraska Man UnsealedRead the Press Release
United States Attorney Susan Lehr announced that the federal Grand Jury for the District of Nebraska has returned an Indictment charging Bryce A. Nolde of Garland, Nebraska, with one count of wire fraud affecting a financial institution. The maximum possible penalty if convicted is no more than 30 years imprisonment, a $1,000,000 fine, a 5-year term of supervised release, and a $100 special assessment.
An indictment is a charging document that contains one or more individual counts that are merely accusations. Nolde is presumed innocent unless and until proven guilty.
This case is being investigated by the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), and Federal Housing Finance Agency-Office of Inspector General (FHFA-OIG).
Customers, subcontractors, suppliers or others who may have done business with Bryce Nolde or BV Builders are encouraged to contact the FDIC-OIG tipline at 1-800-964-3342 or https://www.fdicoig.gov/oig-hotline and reference “BV Builders.”
West Virginia Doctor Charged with Tax Fraud, Obstructing JusticeRead the Press Release
ELKINS - A doctor from Wheeling, West Virginia, has been indicted for failure to pay over nearly $2.5 million in payroll taxes.
United States Attorney William Ihlenfeld announced that Nitesh Ratnakar, age 48, was indicted Wednesday on forty-one counts of tax fraud and one count of obstructing a federal grand jury investigation. Ratnakar owned and operated a gastroenterology practice and a medical equipment manufacturer in Elkins, West Virginia. He is alleged to have withheld payroll taxes from his employees’ paychecks and then failed to make all required payments to the Internal Revenue Service. Between 2018 and 2022, Ratnakar allegedly failed to pay over $2,419,560 in employee withholdings to the I.R.S.
“We take tax fraud seriously because it affects all of us,” said U.S. Attorney Ihlenfeld. “As tax season kicks into high gear, this case is a reminder that being dishonest with the I.R.S. is never a good idea.”
The indictment also charges Ratnakar with filing false tax returns in 2020, 2021, and 2022, and with causing false documents to be provided in response to a federal grand jury subpoena.
The case is being prosecuted by Assistant U.S. Attorney Jarod Douglas.
It was investigated by Internal Revenue Service Criminal Investigation.
An indictment is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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United States Charges Four Mariners from Arabian Sea Vessel Transporting Suspected Iranian-Made Advanced Conventional WeaponsRead the Press Release
RICHMOND, Va. – A criminal complaint was unsealed today charging four foreign nationals after U.S. naval forces interdicted a vessel in the Arabian Sea that was transporting suspected Iranian-made advanced conventional weaponry.
Two Navy SEALs lost their lives during the interdiction.
“The Justice Department extends our deepest condolences to the families and loved ones of the two Navy SEALs who lost their lives on January 11th while conducting an operation in the Arabian Sea,” said Attorney General Merrick B. Garland. “The charges resulting from that interdiction make clear that the Justice Department will use every legal authority to hold accountable those who facilitate the flow of weapons from Iran to Houthi rebel forces, Hamas, and other groups that endanger the security of the United States and our allies.”
“The flow of missiles and other advanced weaponry from Iran to Houthi rebel forces in Yemen threatens the people and interests of America and our partners in the region,” said Deputy Attorney General Lisa Monaco. “Two Navy SEALs tragically lost their lives in the operation that thwarted the defendants charged today from allegedly smuggling Iranian-made weapons that the Houthis could have used to target American forces and threaten freedom of navigation and a vital artery for commerce. Alongside our partners around the world, the Justice Department will continue to deploy every available tool to combat this grave threat.”
“The FBI will aggressively investigate and disrupt the Iranian Government’s attempts to provide Houthi rebels with missile components that are intended for use against U.S. military ships, merchant vessels, and Israel,” said FBI Director Christopher Wray. “The defendants in this case allegedly transported suspected Iranian-made missile components for the type of weaponry used by the Houthi rebels in recent attacks. The FBI is committed to using its global partnerships to stop the illegal flow of weaponry that endangers U.S. national security.”
“As charged, Mr. Pahlawan attempted to smuggle advanced missile components, including a warhead, to Houthi rebels for use against cargo ships and U.S. vessels sailing across the Horn of Africa,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department, together with U.S. agency partners, is working tirelessly to deny malign actors the means to threaten international shipping and imperil the lives of our men and women in uniform.”
“The complaint alleges that the defendants were transporting weapons consistent with those used by Houthi rebel forces and then lied to the U.S. Coast Guard during the boarding of the vessel,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “I want to thank the career prosecutors and our law enforcement partners for ensuring that the defendants now will face justice in an American court.”
“Today’s complaint sends a message that allegedly acting as a proxy for the IRGC in an effort to bring harm to U.S. persons overseas will not be tolerated by the U.S. Government,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Transporting explosive materials intended to be used to threaten and cause harm is yet another example of the IRGC’s disruptive and hostile actions. The FBI and our U.S. Government partners will continue to disrupt efforts by hostile foreign governments seeking to intimidate and cause harm through violence.”
According to court records, on the night of Jan. 11, U.S. Central Command Navy forces operating from the USS LEWIS B. PULLER, including Navy SEALs and members of the U.S. Coast Guard Maritime Security Response Team East, boarded an unflagged dhow, a small vessel, in the Arabian Sea off the coast of Somalia. As alleged, the U.S. boarding team encountered 14 individual mariners on the vessel.
During a search of the dhow, the U.S. boarding team allegedly located and seized what is believed to be Iranian-made advanced conventional weaponry. According to court records, preliminary analysis of the advanced conventional weaponry indicates that it includes critical components for medium range ballistic missiles (MRBM) and anti-ship cruise missiles (ASCM), to include a warhead and propulsion and guidance components. The type of weaponry found aboard the dhow is allegedly consistent with the weaponry used by the Houthi rebel forces in recent attacks on merchant ships and U.S. military ships in the Red Sea and Gulf of Aden.
According to court records, the Navy brought the fourteen mariners aboard the USS LEWIS B. PULLER after determining the dhow was unsafe and unseaworthy. On Feb. 11, the United States obtained arrest warrants for four of the mariners who were aboard the dhow – specifically, defendants Muhammad Pahlawan, Mohammad Mazhar, Ghufran Ullah, and Izhar Muhammad. Pakistani identification cards allegedly were found on the dhow for each of the four defendants. The United States also obtained ten material witness warrants for the remaining individuals aboard the vessel.
The defendants and material witnesses were transferred from the USS LEWIS B. PULLER to the Eastern District of Virginia. The four defendants and eight of the ten material witnesses made their initial appearances before a U.S. Magistrate Judge in Richmond today.
Defendant Muhammad Pahlawan is charged with: (1) intentionally and unlawfully transporting on board the dhow a warhead, knowing the warhead would be used by the Houthi rebel forces against commercial and naval vessels in the Red Sea and surrounding waters; and (2) providing materially false information to U.S. Coast Guard officers during the boarding of the dhow regarding the vessel’s crew and cargo. Co-defendants Mohammad Mazhar, Ghufran Ullah, and Izhar Muhammad were also charged with providing materially false information to U.S. Coast Guard officers during the boarding of the dhow regarding the vessel’s crew and/or cargo.
Pahlawan faces a maximum of 20 years in prison if convicted of unlawfully transporting a warhead, and all four defendants face a maximum of five years in prison if convicted of the false statements offense. A federal district court judge will determine sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
Affidavit in support of criminal complaint
Attorney General Merrick B. Garland, Deputy Attorney General Lisa Monaco, FBI Director Christopher A. Wray, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office and Naval Criminal Investigative Service are investigating the case, with significant assistance provided by the Department of Defense, U.S. Central Command, U.S. Navy, Department of Justice Office of International Affairs, Department of State, and Department of Homeland Security, including the U.S. Coast Guard and U.S. Immigration and Customs Enforcement.
Assistant U.S. Attorneys Troy A. Edwards Jr., John T. Gibbs, and Gavin R. Tisdale for the Eastern District of Virginia and Trial Attorney Lesley Woods of the National Security Division’s Counterterrorism Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents for the four charged defendants are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:24-mj-16, 17, 18, and 19.
A criminal complaint is merely an accusation. The defendants are presumed innocent until proven guilty.
United States Charges Four Mariners from Arabian Sea Vessel Transporting Suspected Iranian-Made Advanced Conventional WeaponsRead the Press Release
A criminal complaint was unsealed today charging four foreign nationals after U.S. naval forces interdicted a vessel in the Arabian Sea that was transporting suspected Iranian-made advanced conventional weaponry.
Two Navy SEALs lost their lives during the interdiction.
“The Justice Department extends our deepest condolences to the families and loved ones of the two Navy SEALs who lost their lives on January 11th while conducting an operation in the Arabian Sea,” said Attorney General Merrick B. Garland. “The charges resulting from that interdiction make clear that the Justice Department will use every legal authority to hold accountable those who facilitate the flow of weapons from Iran to Houthi rebel forces, Hamas, and other groups that endanger the security of the United States and our allies.”
“The flow of missiles and other advanced weaponry from Iran to Houthi rebel forces in Yemen threatens the people and interests of America and our partners in the region,” said Deputy Attorney General Lisa Monaco. “Two Navy SEALs tragically lost their lives in the operation that thwarted the defendants charged today from allegedly smuggling Iranian-made weapons that the Houthis could have used to target American forces and threaten freedom of navigation and a vital artery for commerce. Alongside our partners around the world, the Justice Department will continue to deploy every available tool to combat this grave threat.”
“The FBI will aggressively investigate and disrupt the Iranian Government’s attempts to provide Houthi rebels with missile components that are intended for use against U.S. military ships, merchant vessels, and Israel,” said FBI Director Christopher Wray. “The defendants in this case allegedly transported suspected Iranian-made missile components for the type of weaponry used by the Houthi rebels in recent attacks. The FBI is committed to using its global partnerships to stop the illegal flow of weaponry that endangers U.S. national security.”
“As charged, Mr. Pahlawan attempted to smuggle advanced missile components, including a warhead, to Houthi rebels for use against cargo ships and U.S. vessels sailing across the Horn of Africa,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department, together with U.S. agency partners, is working tirelessly to deny malign actors the means to threaten international shipping and imperil the lives of our men and women in uniform.”
“The complaint alleges that the defendants were transporting weapons consistent with those used by Houthi rebel forces and then lied to the U.S. Coast Guard during the boarding of the vessel,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “I want to thank the career prosecutors and our law enforcement partners for ensuring that the defendants now will face justice in an American court.”
“Today’s complaint sends a message that acting as a proxy for the IRGC in an effort to bring harm to U.S. persons overseas will not be tolerated by the U.S. Government,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Transporting explosive materials intended to be used to threaten and cause harm is yet another example of the IRGC’s disruptive and hostile actions. The FBI and our U.S. Government partners will continue to disrupt efforts by hostile foreign governments seeking to intimidate and cause harm through violence.”
According to court records, on the night of Jan. 11, U.S. Central Command Navy forces operating from the USS LEWIS B. PULLER, including Navy SEALs and members of the U.S. Coast Guard Maritime Security Response Team East, boarded an unflagged dhow, a small vessel, in the Arabian Sea off the coast of Somalia. The U.S. boarding team encountered 14 individual mariners on the vessel.
During a search of the dhow, the U.S. boarding team allegedly located and seized what is believed to be Iranian-made advanced conventional weaponry. According to court records, preliminary analysis of the advanced conventional weaponry indicates that it includes critical components for medium range ballistic missiles (MRBM) and anti-ship cruise missiles (ASCM), to include a warhead and propulsion and guidance components. The type of weaponry found aboard the dhow is allegedly consistent with the weaponry used by the Houthi rebel forces in recent attacks on merchant ships and U.S. military ships in the Red Sea and Gulf of Aden.
According to court records, the Navy brought the fourteen mariners aboard the USS LEWIS B. PULLER after determining the dhow was unsafe and unseaworthy. On Feb. 11, the United States obtained arrest warrants for four of the mariners who were aboard the dhow — specifically, defendants Muhammad Pahlawan, Mohammad Mazhar, Ghufran Ullah, and Izhar Muhammad. Pakistani identification cards allegedly were found on the dhow for each of the four defendants. The United States also obtained ten material witness warrants for the remaining individuals aboard the vessel.
The defendants and material witnesses were transferred from the USS LEWIS B. PULLER to the Eastern District of Virginia. The four defendants and eight of the 10 material witnesses made their initial appearances before a U.S. Magistrate Judge in Richmond today.
Defendant Muhammad Pahlawan is charged with: (1) intentionally and unlawfully transporting on board the dhow a warhead, knowing the warhead would be used by the Houthi rebel forces against commercial and naval vessels in the Red Sea and surrounding waters; and (2) providing materially false information to U.S. Coast Guard officers during the boarding of the dhow regarding the vessel’s crew and cargo. Co-defendants Mohammad Mazhar, Ghufran Ullah, and Izhar Muhammad were also charged with providing materially false information to U.S. Coast Guard officers during the boarding of the dhow regarding the vessel’s crew and/or cargo.
Pahlawan faces a maximum penalty of 20 years in prison if convicted of unlawfully transporting a warhead, and all four defendants face a maximum penalty of five years in prison if convicted of the false statements offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Attorney General Merrick B. Garland, Deputy Attorney General Lisa Monaco, FBI Director Christopher A. Wray, Assistant Attorney General Matt Olsen of the Justice Department’s National Security Division, Assistant Director in Charge David Sundberg of the FBI Washington Field Office, and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
The FBI Washington Field Office and Naval Criminal Investigative Service are investigating the case, with significant assistance provided by the Department of Defense, U.S. Central Command, U.S. Navy, Justice Department’s Office of International Affairs, Department of State, and Department of Homeland Security, including the U.S. Coast Guard and U.S. Immigration and Customs Enforcement.
Assistant U.S. Attorneys Troy A. Edwards Jr., John T. Gibbs, and Gavin R. Tisdale for the Eastern District of Virginia and Trial Attorney Lesley Woods of the National Security Division’s Counterterrorism Section are prosecuting the case.
A criminal complaint is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Pahlawan complaintU.S. Attorney Jesse Laslovich announces fraud alert for COVID-19 cryptocurrency scamRead the Press Release
NOTE: This press release has been updated to reflect the removal of the names of uncharged entities.
BILLINGS — U.S. Attorney Jesse Laslovich for the District of Montana and the FBI Salt Lake City Field Office are alerting the public about a nationwide scam to trick individuals into paying cryptocurrency to lift fake, non-existent arrest warrants.
Targets of the scam receive phone calls or forged court documents stating that they are being investigated for Payroll Protection Program (PPP) fraud and are the subject of an arrest warrant. The documents often claim to have been sent on behalf of the Department of Justice’s Civil Division’s Commercial Litigation Branch. Additional documents sent by scammers advise the recipient that to lift the arrest warrant, the recipient must make a payment through a cryptocurrency kiosk. The documents contain detailed instructions on how to use a cryptocurrency kiosk to send payment.
The U.S. Attorney’s Office, along with the FBI, are warning the public that these solicitations are unapproved and illegitimate. If you receive solicitations to lift an arrest warrant in exchange for cryptocurrency payments, you should not respond or follow those instructions.
“We are aware of scammers attempting to target Montanans to trick us into paying cryptocurrency for bogus arrest warrants. No Montanan should ever be contacted by law enforcement asking for money to lift an arrest warrant. If you are contacted to do this, it’s fraudulent. These fraudsters can be convincing, and the documents may appear to be authentic, but they are not. I urge anyone who may be the targets of this scheme to report it to local law enforcement and the FBI,” U.S. Attorney Laslovich said.
“Scammers prey on people’s fears or use intimidation tactics so victims will hastily provide personal information or payment,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “Keep in mind, federal agencies and law enforcement will never contact individuals to ask for money.”
Please report these scams to law enforcement by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721, or by submission to the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. You also may report the scam to the FBI at: https://www.ic3.gov/.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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U.S. Attorney Gerard M. Karam Announces Fraud Alert for Covid-19 Cryptocurrency ScamRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania is alerting the public about a nationwide scam to trick unsuspecting individuals into paying cryptocurrency to lift non-existent arrest warrants.
According to United States Attorney Gerard M. Karam, targets of the scam have received forged court documentation stating that they are being investigated for Payroll Protection Program (PPP) fraud and are the subject of an arrest warrant. The documents often claim to have been sent on behalf of the Department of Justice’s Civil Division’s Commercial Litigation Branch. Additional documents sent by scammers advise the recipient that to lift the arrest warrant, the recipient must make a payment through a cryptocurrency kiosk. The documents contain detailed instructions on how to use a cryptocurrency kiosk to send payment.
The United States Attorney’s Office is warning the public that these solicitations are unapproved and illegitimate. If you receive solicitations to lift an arrest warrant in exchange for cryptocurrency payments, you should not respond or follow those instructions. Please report these scams to law enforcement by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721, or by submission to the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. You also may report the scam to the Federal Bureau of Investigation at: https://www.ic3.gov/.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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NOTE: This press release has been updated to reflect the removal of the names of uncharged entities.
Two New Orleans Men Plead Guilty to Illegally Possessing a Gun After Felony ConvictionsRead the Press Release
NEW ORLEANS, LOUISIANA –MICHAEL CONNER, age 22, and ROBERT HALL, age 24, both residents of New Orleans, Louisiana, pleaded guilty on February 20, 2024, before United States District Judge Lance M. Africk to violations of the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to court records, CONNER and HALL each admitted to being arrested by the New Orleans Police Department due to their possession of firearms. Prior to their arrests, CONNER and HALL were each convicted of felony offenses, with CONNER having a prior conviction for drug trafficking and HALL having prior convictions for attempted robbery, robbery, and being a felon in possession of a firearm.
Judge Africk set sentencing for June 12, 2024. CONNER and HALL each face a maximum term of imprisonment of 15 years, a fine of up to $250,000, up to 3 years of supervised release, and 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.
The case was investigated by the New Orleans Police Department and the Federal Bureau of Investigations. It is being prosecuted by Assistant United States Attorney David Haller, who is Senior Litigation Counsel at the U.S. Attorney’s Office.
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Two Men Indicted for Narcotics and Firearms Offenses After More Than Four Pounds of Fentanyl and Nearly Thirty-five Pounds of Cocaine Found in Downtown Nashville High-Rise ApartmentRead the Press Release
Nashville – Two Nashville, Tennessee, men are facing federal charges after agents executed multiple search warrants, including a search warrant on a downtown Nashville high-rise apartment, and discovered evidence of large-scale narcotics distribution — including more than four pounds of fentanyl, nearly thirty-five pounds of cocaine, approximately $350,000 in cash, and firearms — announced United States Attorney Henry C. Leventis.
The indictment returned by the grand jury charges Brandon Ostein, a/k/a “Snake,” 37, and Anthony Gloss, 40, with conspiring to possess with intent to distribute fentanyl and cocaine. Both men are also charged with distributing and possessing with intent to distribute fentanyl and cocaine, as well as weapons counts based on firearms recovered during searches of their Nashville apartments. The indictment also contains a forfeiture allegation in which the government seeks to forfeit any property derived from the proceeds of the crimes, including the approximately $350,000 in cash and three firearms.
If convicted, both men face no less than 30 years’ imprisonment and up to life imprisonment.
This case was investigated by the Tennessee Bureau of Investigation, Drug Enforcement Administration, Murfreesboro Police Department, and Metropolitan Nashville Police Department. Assistant U.S. Attorney Nicholas J. Goldin is prosecuting the case.
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Men Charged with Federal Firearms ViolationsRead the Press Release
ELKINS, WEST VIRGINIA – Two men have been charged with federal firearms violations in North Central West Virginia.
Wesley Shane Haggerty, age 35, of Cabins, West Virginia, was indicted for unlawful possession of a firearm. According to court documents, Haggerty was previously convicted of multiple domestic violence, burglary, and drug charges, prohibiting him from having firearms. He was arrested in Pendleton County and found in possession of a .25 caliber pistol.
James Douglas Lambert, age 35, of Moorefield, West Virginia, was indicted for unlawful possession of firearms. According to the indictment, Lambert is prohibited from having firearms because he was previously convicted of breaking and entering, escape, and domestic battery in Grant and Hardy Counties. Lambert possessed seven firearms at a residence in Grant County.
Assistant U.S. Attorney Stephen Warner is prosecuting the cases on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the cases. The Pendleton County Sheriff’s Office assisted in the Haggerty case.
Indictments are merely allegations, and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Individuals Facing Federal Charges for Straw Purchasing FirearmsRead the Press Release
ELKINS, WEST VIRGINIA – Two people have been indicted on federal firearms charges by a Grand Jury sitting in Elkins, West Virginia.
John Allen Shomo, age 52, of Coalton, West Virginia, was indicted for the straw purchase of a firearm and making a false statement in connection with the purchase of a firearm. According to court documents, Shomo bought a .40 caliber pistol from a licensed firearms dealer in Randolph County, stating on the forms that the firearm was for his personal use. Shomo purchased the firearm for an individual who was prohibited from possessing firearms due to a felony conviction.
Stacy Lynn Cave, age 40, of Elkins, West Virginia, is charged with the straw purchase of a firearm and making a false statement in connection with the purchase of a firearm. According to the indictment, Cave falsified forms to purchase a .223 caliber rifle for an individual who was prohibited from possessing firearms due to a felony conviction.
Assistant U.S. Attorney Stephen Warner is prosecuting the cases on behalf of the government.
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mountain Region Drug Task Force.
Indictments are merely allegations, and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Three Members of Traveling Vice Lords/Junk Yard Dogs Street Gang Convicted of Racketeering OffensesRead the Press Release
Memphis, TN – A federal jury in Memphis recently delivered guilty verdicts in a case involving three members of the Traveling Vice Lords/Junk Yard Dogs (TVL/JYD) street gang. Tomarcus (“TC”) Baskerville, 35, Thomas (“TJ”) Smith, 24, and Courtland (“Hotbox”) Springfield, 32, all of Fayette County, Tennessee, were convicted under the Racketeering Influenced and Corrupt Organizations (RICO) Act. United States Attorney Kevin G. Ritz announced the guilty verdicts today. According to information presented in court, the TVL/JYD is a violent criminal street gang that operates throughout the Western District of Tennessee. A subset of Chicago’s Almighty Vice Lord Nation, the gang participated in a series of attempted murders and murders of rival gang members during a gang war in the summer of 2020. The shootings spanned five different crime scenes across Fayette and Hardeman counties.
A superseding indictment involving fifteen TVL/JYD members was filed in February 2023. The defendants were charged with conspiring to participate in racketeering and several incidents of attempted murder, using a firearm while committing a violent crime, murder in aid of racketeering, and using a firearm to cause death during an act of violence. Eleven defendants pled guilty in the case.
After a month-long trial, on February 9th, 2024, Baskerville, Smith, and Springfield were convicted of multiple charges under the superseding indictment:
- Gang leader Tomarcus Baskerville was convicted of 21 counts, including attempted Violent Crime in Aid of Racketeering (VICAR) murder, VICAR murder, the use of a firearm during attempted VICAR murders, and RICO conspiracy. Baskerville will face a mandatory sentence of two life terms.
- Thomas Smith was convicted of attempted VICAR murder, use of a firearm during an attempted VICAR murder, and RICO conspiracy. Smith will face up to life in prison.
- Courtland Springfield was found guilty of four counts of attempted VICAR murder, four counts of using a firearm during attempted VICAR murders, VICAR murder, using a firearm during the VICAR murder, and RICO conspiracy. Springfield faces a mandatory sentence of life in prison.
There is no parole in the federal system. Sentencing in this case is set for June 7, 2024.
This case was investigated by the Tennessee Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Fayette County Sheriff’s Office; Whiteville Police Department; and Somerville Police Department.
United States Attorney Ritz thanked Assistant United States Attorneys Neal Oldham, William Bateman, Beth Boswell, and Special Assistant United States Attorney Raven Icaza who prosecuted this case, as well as law enforcement partners who investigated the case. Additionally, he thanked District Attorney General Mark Davidson and the 25th Judicial District for their assistance in the prosecution.
Three Former Local 98 Employees Sentenced for Illegal Use of Union AssetsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Michael Neill, 57, Marita Crawford, 54, and Niko Rodriguez, 32, all of Philadelphia, Pennsylvania, were sentenced this week by United States District Court Judge Jeffrey Schmehl. The defendants, all former employees of Local 98 of the International Brotherhood of Electrical Workers (“Local 98”), had previously pleaded guilty to stealing Local 98 funds for their personal use.
Michael Neill had served as the Training Director of Local 98’s Apprentice Training Fund since 2008. In December 2022, he pleaded guilty to four counts of embezzlement of labor union assets, one count of theft from a union employee benefit plan, and one count of making and subscribing to a false federal income tax return. As part of his guilty plea, Neill admitted having Local 98 and the Apprentice Training Fund pay for construction and maintenance work at his home, at Doc’s Union Pub, of which he was a part owner, and other personal properties by causing the submission of false invoices from May 2013 through December 2015.
Neill was sentenced to 13 months in prison, three years of supervised release, a fine of $10,000, and a mandatory special assessment of $600. Neill was ordered to pay restitution of $92,733.67 and to forfeit the sum of $25,259.29.
Marita Crawford had served as Local 98’s Political Director since November 2011. In December 2022, she pleaded guilty to four counts of wire fraud, which involved using her Local 98 credit card to pay for personal expenses for the benefit of herself and others, and, for some of the illegal expenditures, submitting false business-related explanations of the expenses to the union to disguise the illegal nature of the transactions. Crawford also admitted illegally using money from a political action committee (PAC) called “New Gen1,” funded primarily by contributions from Local 98’s committee on political education (“COPE”) and by the IBEW’s similar fund in Washington, D.C., for personal purchases for herself and others.
Crawford was sentenced to 15 days in prison followed by three months of home confinement, three years of supervised release, a fine of $2,000 and a mandatory special assessment of $400. She was ordered to pay restitution of $11,903 and to forfeit the sum of $2,777.63.
Niko Rodriguez was employed by Local 98’s Apprentice Training Fund and by Local 98 since 2011, primarily serving as a driver and personal assistant to Local 98’s Business Manager, codefendant John Dougherty. In December 2022, he pleaded guilty to six counts of embezzlement of labor union assets. As part of his guilty plea, Rodriguez admitted using Local 98 credit cards to purchase personal goods for himself and Dougherty.
Rodriguez was sentenced to three years’ probation, 80 hours of community service, a fine of $5,000, and a mandatory special assessment of $600. He was ordered to pay restitution of $13,491 and to forfeit the sum of $1,079.55.
“In using Local 98 funds to pay for personal expenses, these defendants broke the law, and they stole from the union’s rank and file,” said U.S. Attorney Romero. “Every one of those hardworking members needs to be able to trust that the dues they dutifully pay are in fact being used for the union’s benefit, as intended. When that doesn’t happen, when money is unlawfully misdirected, we and our partners won’t hesitate to step in and hold those responsible to account.”
“Investigating public corruption is a priority of the FBI and this includes ensuring the integrity of labor organizations and protecting the workers who trust them.” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “These individuals betrayed the electrical union’s members, those who rely on them to work with their best interest in mind, not out of greed. The FBI and our partners will continue to investigate and hold accountable those that pocket organizational funds for personal profit.”
“IRS-Criminal Investigation is proud to have provided its financial expertise in this investigation,” said Yury Kruty, Special Agent in Charge of IRS-Criminal Investigation. “We, along with our law enforcement partners and the Department of Justice, will continue to aggressively investigate individuals who engage in money laundering, tax fraud, or other types of white-collar crimes.”
“Neill’s sentencing sends an important message to all those entrusted with protecting benefit plan assets. Regardless of title or position, the U.S. Department of Labor will hold fiduciaries to the highest standards of accountability to protect the employee benefits of America’s workers,” said U.S. Department of Labor’s Employee Benefits Security Administration Regional Director Cristina O’Brien in Philadelphia.
“Most union officials and employees do their work with great care, but union employees Michael Neill, Marita Crawford and Niko Rodriguez betrayed the trust and confidence placed in them by members of IBEW Local 98,” said U.S. Department of Labor Office of Labor-Management Standards Acting District Director Nicole Spallino in Philadelphia. “We remain committed to working with our law enforcement partners to identify criminal violations and pursue legal action when individuals unlawfully exploit their union positions at the expense of the union and its members.”
Sentencing hearings for codefendants Brian Fiocca, who pleaded guilty in December 2022, as well as codefendants Brian Burrows and John Dougherty, who were convicted at trial in December 2023, are scheduled for March, April, and May 2024, respectively.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Labor Office of Labor Management Standards, the U.S. Department of Labor Office of Inspector General, and the Pennsylvania State Police, with assistance from the Pennsylvania Attorney General’s Office, and is being prosecuted by Assistant United States Attorneys Frank Costello, Bea Witzleben, Richard Barrett, Jason Grenell, and Anthony Carissimi.
Thibodaux Man Pleads Guilty to Possessing Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that SIMON PAUL ADAMS, age 27, a resident of Thibodaux, La., pled guilty on February 21, 2024 before United States District Judge Lance M. Africk to possession of child sexual abuse material (CSAM), in violation of Title 18, United States Code, Section 2252(a)(4)(B).
According to court documents, on multiple dates, including, on or about October 15, 2022, December 14, 2022, and January 19, 2023, Federal Bureau of Investigation (“FBI”) agents investigated the sharing of digital files depicting the sexual exploitation of children via a peer-to-peer file sharing network. Agents downloaded a series of files depicting the sexual exploitation of children, from an IP address connected to a residence in Thibodaux subsequently determined to be ADAMS’s residence. The files included videos between approximately three minutes and twenty-three minutes long depicting juvenile females being sexually victimized.
Agents executed a search warrant at ADAMS’s residence in July 2023 and seized electronic devices, several of which contained contain files (i.e., images and videos) depicting the sexual victimization of children and obscene visual representations of the sexual abuse of children. An analysis of the devices revealed at least approximately 5 images and 70 videos depicting the sexual victimization of children and over 30 images and 1,500 videos depicting obscene visual representations of the sexual abuse of children. Some of the depictions included children less than three years old being victimized and depictions that portrayed sadistic or masochistic conduct or other depictions of violence.
ADAMS faces up to twenty (20) years imprisonment, up to a lifetime of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee. He may also be required to register as a sex offender. Sentencing before Judge Africk has been scheduled for June 12, 2024.
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 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Texas Man Who Threatened Doctor Serving Transgender Patients Sentenced to Three Months in PrisonRead the Press Release
BOSTON – A Texas man was sentenced today in federal court in Boston for threatening a Boston doctor affiliated with the national LGBTQIA+ health education center.
Matthew Jordan Lindner, 39, of Comfort, Texas, was sentenced by Senior U.S. District Judge William G. Young to three months in prison and three years of supervised release. Lindner was also ordered to pay restitution of $2,986. In December 2023, Lindner pleaded guilty to one count of interstate transmission of threatening communication.
In August 2022, inaccurate information spread online regarding procedures doctors at Boston Children’s Hospital were performing for gender nonconforming children. On Aug. 31, 2022, Lindner called the Boston-based National LGBTQIA+ Health Education Center and left a threatening voicemail targeting one of the Center’s affiliated doctors. In that voicemail, Lindner said: “You sick motherf*****s, you’re all gonna burn. There’s a group of people on their way to handle [victim]. You signed your own warrant, lady. Castrating our children. You’ve woken up enough people. And upset enough of us. And you signed your own ticket. Sleep well, you f****** c***.”
“This office will aggressively investigate and prosecute acts of hate and intimidation. Threatening a medical doctor providing essential care to children is deplorable. No one in this country should live in fear for their safety because of their identity, gender, race, religion or beliefs. Full stop.” said Acting United States Attorney Joshua S. Levy. “We urge the public to call their local police or the FBI if they are ever threatened with physical harm the way the doctor in this case was simply for doing his or her job.”
“Imagine the terror of having your life threatened for just doing your job. Matthew Lindner accosted a physician for doing exactly that, and in doing so instilled unnecessary fear in the medical community,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Hateful, repulsive, and threatening behavior like this has no place here, and today’s sentence demonstrates that we won’t stand for criminals terrorizing innocent people. Nobody should have to fear becoming the target of vitriol-fueled violence.”
After leaving the threatening voicemail, Lindner continued to try to contact the victim. To that end, Lindner called the victim’s former medical practice and a university where the victim was a faculty member.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Brian A. Fogerty and K. Nathaniel Yeager of the Criminal Division prosecuted the case.
Task Force KleptoCapture Announces Array of New Charges, Arrests, and Forfeiture Proceedings in Advance of Second Anniversary of Illegal Invasion of UkraineRead the Press Release
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From the outset of Russia’s unprovoked, full-scale invasion of Ukraine on Feb. 24, 2022, the Department of Justice has prioritized enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed alongside our global partners. Today, the Department continues that work through significant enforcement actions in five separate federal cases against sanctioned oligarchs and facilitator networks supporting the Russian regime.Today’s actions coincide with the approaching two-year mark of Russia’s unprovoked war in Ukraine. Read more about the Justice Department’s efforts to hold Russia accountable here.
“The Justice Department is more committed than ever to cutting off the flow of illegal funds that are fueling Putin’s war and to holding accountable those who continue to enable it,” said Attorney General Merrick B. Garland. “That is why today we are announcing several additional enforcement actions that the Justice Department has taken to bring prosecutions against and seize assets of sanctioned enablers of the Kremlin and Russian military.”
“Since the onset of Russia’s brutal and unprovoked invasion of Ukraine, the Justice Department has used every tool in our arsenal – including our international partnerships – to target the criminal actors and activity propping up Vladimir Putin, his henchmen, and his illegal war,” said Deputy Attorney General Lisa Monaco. “Over the last two years, our Task Force KleptoCapture has restrained, seized, and obtained judgments to forfeit nearly $700 million in assets from Russian enablers and charged more than 70 individuals for violating international sanctions and export controls levied against Russia. The charges we announce today against oligarchs, facilitators, and money launderers are the next chapter: so long as Russia's aggression continues, so too will our resolve to hold its enablers accountable. We stand firmly with the people of Ukraine.”
“It has been two years since Russia’s unprovoked invasion of Ukraine and the FBI continues to go after the Russian criminals who finance and enable Russia’s war,” said FBI Director Christopher Wray. “To the people of Ukraine fighting for their freedom: The FBI remains steadfast in our efforts to disrupt and hold accountable the criminals supporting the Russian War, and we will continue to stand with you to fend off Russian aggression for as long as it takes.”
In the Southern District of New York, the Department unsealed charges against three people, including sanctioned oligarch Andrey Kostin and two of his U.S.-based facilitators. The facilitators, Vadim Wolfson, aka Vadim Belyaev and Gannon Bond, were arrested today.
In the Middle District of Florida, a grand jury returned an indictment charging Sergey Vitalievich Kurchenko, a sanctioned pro-Russian Ukrainian oligarch, in a years-long scheme to violate and evade U.S. sanctions by receiving funds from and doing approximately $330 million in business with U.S. persons.
In the Northern District of Georgia, Atlanta-based dual national Feliks Medvedev pleaded guilty to his role in laundering over $150 million through bank accounts and shell companies on behalf of Russian clients. Separately, on Feb. 13, KSK Group – a sanctioned Russian company which assists Russian citizens with international money movements – and two overseas Russian nationals, including one sanctioned individual, were indicted for money laundering.
In the Southern District of Florida, the United States filed a civil forfeiture complaint against two Miami luxury condominium properties owned by sanctioned Russian oligarch Viktor Perevalov. The properties are allegedly connected to a conspiracy to maintain and transfer real estate for the benefit of Perevalov. Located at the Ritz Carlton in Bal Harbour, the properties are valued at approximately $2.5 million.
Lastly, in the District of Columbia, a superseding indictment was unsealed today charging Vladislav Osipov with bank fraud in connection with a criminal scheme to facilitate the operation of the Motor Yacht (M/Y) Tango, a 255-foot luxury yacht that the Justice Department has previously stated is owned by sanctioned Russian oligarch Viktor Vekselberg.
United States v. Kostin et al., Southern District of New York
Today, the United States unsealed an indictment charging Andrey Kostin, a sanctioned Russian oligarch and the President and Chairman of a Russian state-owned bank with participating in two schemes to violate U.S. sanctions and arrested two U.S.-based co-conspirators for their role in facilitating one of the schemes.
As alleged in the indictment, Kostin participated in a scheme to evade sanctions and launder funds to support two superyachts, collectively worth over $135 million. Kostin and two U.S. persons also allegedly engaged in a scheme to evade sanctions related to a luxury home in Aspen, Colorado. Facilitators Vadim Wolfson, aka Vadim Belyaev, 56, of Austin, Texas, and a legal permanent resident of the United States, and Gannon Bond, 49, a U.S. citizen of Edgewater, New Jersey, were arrested earlier today.
Kostin is a Russian oligarch who was sanctioned by OFAC on April 6, 2018, pursuant to Executive Order 13661 for being an official of the Government of the Russian Federation. From at least on or about April 6, 2018, through at least on or about March 2, 2022, Kostin and others, including at times Wolfson and Bond, allegedly participated in schemes to violate the International Emergency Economic Powers Act (IEEPA), through the provision of funds, goods, and services, including U.S. financial services and U.S. dollar transactions, to and for Kostin’s benefit. The indictment alleges that Kostin also engaged in a scheme to commit money laundering to promote IEEPA violations.
According to the indictment, before and after OFAC sanctioned Kostin, he beneficially owned and controlled, through various shell companies, several assets worth tens of millions of dollars, including two superyachts identified as the Sea Rhapsody and Sea & Us, valued at over $135 million. Kostin and others allegedly violated IEEPA on numerous occasions, including by causing U.S. dollar payments to be made for the maintenance, operation, and improvement of the Sea Rhapsody and Sea & Us for the benefit of Kostin and without an OFAC license, which is required for U.S. persons to transact with a sanctioned person. In causing these U.S. dollar payments to be made, Kostin and others also allegedly committed international money laundering.
The indictment alleges that Kostin also owned a luxury home in Aspen, Colorado, that he purchased for $13.5 million in 2010. From at least on or about April 6, 2018, through at least in or about September 2019, Kostin, Wolfson, Bond, and others participated in a scheme to violate the IEEPA by providing funds, goods, and services for the benefit of Kostin, whose property and interests in property, including the Aspen home, were blocked as a result of the OFAC sanctions against him. Specifically, notwithstanding having been sanctioned by OFAC, Kostin and his conspirators allegedly schemed to operate, maintain, and improve Kostin’s Aspen residence in a manner designed to conceal Kostin’s continued ownership of this luxury asset. In addition, in or about September 2019, Kostin, Wolfson, Bond, and others allegedly committed additional sanctions violations by dealing in and transferring Kostin’s blocked property. Specifically, the conspirators allegedly arranged to sell the Aspen home and provide Kostin with approximately $12 million resulting from the sale.
Kostin, 67, of Russia, remains at large and is believed to be in Russia. KOSTIN is charged with two counts of conspiracy to violate IEEPA, two counts of violating IEEPA, and one count of conspiracy to commit international money laundering, all of which each carry a maximum sentence of 20 years in prison.
Wolfson is charged with one count of conspiracy to violate IEEPA and two counts of violating IEEPA, each of which carries a maximum sentence of 20 years in prison.
Bond is charged with one count of conspiracy to violate IEEPA and two counts of violating IEEPA, each of which carries a maximum sentence of 20 years in prison. The FBI’s Washington Field Office is investigating the case.
Assistant U.S. Attorneys Emily Deininger and David Felton for the Southern District of New York’s Illicit Finance and Money Laundering Unit, and Trial Attorneys Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section and Oleksandra Johnson of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
United States v. Kurchenko, Middle District of Florida
Pro-Russian Ukrainian oligarch Sergey Vitalievich Kurchenko, 38, currently believed to be living in Moscow, Russia, is charged with violating the IEEPA and U.S. sanctions on Russia in connection with a years-long scheme to do business in the United States, in violation of U.S. sanctions. Kurchenko was sanctioned by OFAC in 2015 for his role in misappropriating state assets of Ukraine or of an economically significant entity in Ukraine.
As alleged, between in or about July 2017 through in or about February 2022, Kurchenko and others used a network of shell companies that Kurchenko owned and controlled to sell metal products – including pig iron, wire rods, and steel billets – to individuals and entities in the United States, including a U.S. company identified as Company A in court documents. The metal products included items produced in factories in the Donbas region of Ukraine that were owned and controlled by Kurchenko. As alleged, Kurchenko committed money laundering by transferring funds into and out of the United States in connection with the scheme and his IEEPA violations.
To facilitate the unlawful transactions described above, Kurchenko allegedly met with U.S.-based purchasers in Moscow to negotiate metal transactions between entities that he owned and controlled and U.S. persons, including Company A and its representatives. As alleged, Kurchenko willfully engaged in transactions involving the sale and shipment of products valued at more than $330 million to individuals and companies in the United States.
Kurchenko is charged with conspiracy to violate the IEEPA and U.S. sanctions against Russia, which carries a maximum penalty of 20 years in prison, and conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison.
The FBI Tampa Field Office, Orlando Resident Agency, and Washington Field Office, International Corruption Unit, are investigating the case, with valuable assistance provided by U.S. Customs and Border Protection.
Assistant U.S. Attorney Chauncey Bratt for the Middle District of Florida and Trial Attorneys Sean O’Dowd of the Criminal Division’s Money Laundering and Asset Forfeiture Section and Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
United States v. Feliks Medvedev and United States v. KSK Group et al., Northern District of Georgia
On Feb. 7, Feliks Medvedev, 42, a Russian citizen residing in Buford, Georgia, pleaded guilty to conducting an unlicensed money transmitting business in connection with using shell companies to make more than 1,300 financial transfers totaling over $150 million into bank accounts controlled by the defendant.
According to court documents, Medvedev registered eight shell companies in the state of Georgia between July 2019 and July 2020, for which he was the sole agent and signatory on relevant bank accounts. Medvedev’s purported business purposes for these companies included, among others, “computer software wholesaler,” “professional equipment,” and “coal / mineral wholesaler.” Court documents note that these companies did not have any employees, or expenditures for payroll, rent, equipment, or other business-related costs.
As stated in documents filed with the court, throughout the scheme, there were over 1,200 transfers totaling over $150 million into the bank accounts for these companies, which were controlled by Medvedev. Over $150 million was then transferred out of these accounts in over 1,300 transactions. Medvedev retained over $500,000 from the funds transferred into accounts he controlled.
Medvedev pleaded guilty to one count of conducting an unlicensed money transmitting business, which carries a maximum penalty of five years in prison and up to a $250,000 fine. Medvedev is scheduled to be sentenced on May 7.
Relatedly, a federal grand jury in the Northern District of Georgia returned an indictment on Feb. 13, alleging that Alexey Chubarov, 42, of Russia, and Lev Solyannikov, 31, of Russia, and their company KSK Group, conspired with Medvedev in the transfer of these funds and then laundered the illegal proceeds.
According to the indictment, KSK Group is a business consulting firm in Moscow, Russia, and Chubarov and Solyannikov both worked for KSK Group. Chubarov and Solyannikov allegedly informed Medvedev about incoming wires and then directed Medvedev concerning the outgoing transfers he should make, including transferring certain funds to the Singapore Precious Metal Exchange (Exchange) to purchase gold bullion. According to the indictment, Medvedev’s companies transmitted at least $65 million to purchase gold from the Exchange.
On Sept.14, 2023, OFAC added Chubarov and KSK Group to the list of Specially Designated Nationalss and Blocked Persons, pursuant to Executive Order 14024, for operating or having operated in the financial services sector of the Russian Federation economy.
Chubarev and Solyannikov are charged with conspiracy to conduct an unlicensed money transmitting business and conducting an unlicensed money transmitting business, which carries a maximum penalty of five years in prison and up to a $250,000 fine for each count; conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison; and money laundering which carries a maximum penalty of 20 years in prison; and engaging in monetary transactions in property derived from specified unlawful activity, which carries a maximum statutory penalty of 10 years in prison.
The FBI’s Atlanta Field Office is investigating the case.
Assistant U.S. Attorneys Christopher J. Huber, Norman L. Barnett, and Sekret T. Sneed for the Northern District of Georgia are prosecuting the case.
Forfeiture of Real Properties Belonging to Viktor Perevalov, Southern District of Florida
Today, the United States filed a civil forfeiture complaint in the Southern District of Florida alleging that two Bal Harbour condominiums are subject to forfeiture based on violations of IEEPA, OFAC sanctions, and federal money laundering statutes.
As alleged in the complaint, Viktor Perevalov and Valeri Abramov were co-founders of VAD, AO, a Russia-based construction company responsible for constructing the Tavrida Highway in the Russian-occupied Crimea region of Ukraine. On Jan. 26, 2018, pursuant to Executive Order 13685, OFAC sanctioned Victor Perevalov, Valeri Abramov, VAD, AO, and others following the Russian invasion of Crimea, effectively blocking all of their property or interests in property in the United States from being transferred, paid, exported, withdrawn, or otherwise dealt in.
According to the complaint, soon after the sanctions, R.S., a Miami real estate agent retained to manage the properties, worked to transfer the two condominiums owned by Perevalov, Units 1616 and 1617 located at 10295 Collins Avenue, Bal Harbour, Florida, 33154 (the Defendant Properties) to an LLC in violation of the sanctions. The Defendant Properties have a combined value of approximately $2.5 million. On April 10, 2018, R.S. and others, including a law firm, formed 1616 Collins LLC., and named R.P., a Perevalov family member who was a minor at the time, the entity’s purported sole beneficial owner. On June 14, 2018, the title of the Defendant Properties was transferred to 1616 Collins LLC in violation of the sanctions. R.S. served as Perevalov’s power of attorney for the transfer. After the transfer, R.S. continued to lease the Defendant Properties, collected proceeds derived from the Defendant Properties, and used those proceeds to maintain the Defendant Properties including by making property tax payments.
FBI’s Miami Field Office is investigating the case with support from the Sunny Isles Beach Police Department.
Assistant U.S. Attorneys Marx P. Calderón and Eli Rubin for the Southern District of Florida, Trial Attorneys Sinan Kalayoglu and Lindsay Gorman of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Joshua E. Kurland of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this civil action.
United States v. Osipov, District of Columbia
A superseding indictment, unsealed today, charges Vladislav Osipov, 52, a Russian national who resides in Switzerland, with five new counts of bank fraud in connection with the operation of a 255-foot luxury superyacht that the Department has stated is owned by sanctioned Russian oligarch Viktor Vekselberg.
The indictment states that Vekselberg’s luxury superyacht is the Tango, which was registered in the Cook Islands. The Tango was the first superyacht belonging to a sanctioned individual with close ties to the Russian regime to be seized at the request of the U.S. government following Russia’s February 2022 invasion of Ukraine.
Osipov remains at large. Today, the U.S. State Department offered a reward of up to $1 million for information leading to his arrest or conviction. Previously indicted in November 2022, Osipov is now charged with 17 counts for crimes including bank fraud, punishable by up to 30 years in prison; violating U.S. sanctions punishable by up to 20 years in prison; conspiring to defraud the United States, punishable by up to five years in prison; and money laundering, punishable by up to 20 years in prison.
FBI’s Minneapolis Field Office is investigating the case, with valuable assistance provided by the Spanish Ministry of Justice and the Spanish Guardia Civil.
Assistant U.S. Attorneys Karen P. Seifert and Maeghan Mikorski for the District of Columbia and Trial Attorney Chris M. Cook of the National Security Division’s Counterintelligence and Export Control are prosecuting the case, with valuable assistance provided by Paralegals Brian Rickers and Jorge Casillas, and Legal Assistant Jessica McCormick.
* * *
The Justice Department’s Office of International Affairs provided significant assistance in all of these cases.
These cases were coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment and a criminal complaint are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards a judgment in favor of the United States.
Tahlequah Resident Sentenced for Federal Firearm ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Christopher Andrew Loveall, age 30, of Tahlequah, Oklahoma, was sentenced to 27 months imprisonment for illegally possessing a firearm.
The charge arose from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cherokee County Sheriff’s Office, and the Tahlequah Police Department.
On May 15, 2023, Loveall pleaded guilty to one count of Felon in Possession of Firearm. According to investigators, on January 16, 2023, officers observed Loveall fire a gun from the front passenger seat of a vehicle before the vehicle drove away at a high rate of speed. Officers pulled the vehicle over and found a firearm magazine on the floorboard. During a search of the nearby roadside along the vehicle's path, officers found a 380 semi-automatic handgun. Loveall knew when he possessed the firearm that he had been previously convicted of a crime punishable by a term of imprisonment exceeding one year.
The Honorable Ronald A. White, Chief Judge of the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Loveall will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney T. Cameron McEwen represented the United States.
Tahlequah Resident Pleads Guilty to Felony Assault ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tristan Hunter Finch, age 27, of Tahlequah, Oklahoma, entered a guilty plea to an Indictment charging him with one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian country.
The Indictment alleged that on September 5, 2023, Finch assaulted the victim with a knife. The crime occurred within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Muskogee Police Department.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Michael E. Robinson represented the United States.
Statement of U.S. Attorney Damian Williams on the Conviction of A Tennessee Individual for Violating the Freedom of Access to Clinic Entrances ActRead the Press Release
“As a unanimous jury found moments ago, Bevelyn Beatty Williams unlawfully interfered with patients seeking, and medical professionals providing, reproductive health services at a Manhattan health clinic. Over two days in June 2020, the defendant used threats and physical force and repeatedly blocked doors to prevent individuals from gaining access to the health clinic. Williams went so far as to crush a staff member’s hand in the clinic door as the staff member was attempting to open the door. Regardless of one’s personal views, bullying and depriving other citizens of their right to healthcare is not a legitimate form of protest, and I’m proud of the career prosecutors of the Civil Rights Unit in the Criminal Division for enforcing our nation’s laws — without fear or favor — in this case.”
St. Louis County Man Sentenced for Trying to Bribe Postal WorkersRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Wednesday sentenced a man who tried to buy keys to mail collection boxes from postal workers to 20 months in prison.
Dwaundre K. Valley, 21, of Bridgeton, pleaded guilty in October to bribery of a public official. He admitted offering three different postal carriers a bribe in March and April of 2022 for the “arrow” keys that allow access to certain mail collection boxes. Valley offered one letter carrier $5,000 for the key, his plea agreement says.
In a sentencing memo, Assistant U.S. Attorney Jonathan Clow wrote that the bribery attempts come at a time when mail theft has been on the rise, as criminals steal mail to obtain checks and use those checks to commit fraud. Crimes like Valley’s undermine the public’s sense of security and confidence in a vital government service, Clow wrote.
“The Postal Inspection Service is committed to investigating those that attempt to compromise the integrity of the U.S. Mail and Postal Service employees. This sentencing is a clear indication that our investigative efforts will not cease until those responsible for such criminal acts are brought to justice,” said Ruth M. Mendonça, Inspector in Charge of the Chicago Division of the U.S. Postal Inspection Service, which includes the St. Louis Field Office.
These cases were investigated by the U.S. Postal Inspection Service. A U.S. Marshals Service task force that includes the St. Louis County Police Department assisted in apprehending Valley. Assistant U.S. Attorney Jonathan Clow prosecuted the case.
Spokane Man Sentenced to 5 Years Probation for Operating a Ponzi Scheme and Defrauding Investors of More Than $3 MillionRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Ronald Walter Hannes of Spokane, Washington, was sentenced after pleading guilty to Investment Advisor Fraud. United States District Judge Thomas O. Rice imposed a sentence of five years of probation. He also ordered Hannes to sell his assets, including his home valued at more than $700,000, in order to pay restitution to his victims.
According to court documents and information provided at sentencing, Hannes was the owner and operator of Hannes Financial Services, Inc (“HFS”). Through HFS, Hannes provided brokerage services to clients under the authority of Woodbury Financial Services.
In December of 2019, following complaints from one of Hannes’s clients, Woodbury Financial Services terminated Hannes’s employment and brokerage relationship. The Financial Industry Regulatory Authority (FINRA) later barred Hannes from acting as a broker or otherwise associating with a broker-dealer firm. The Federal Bureau of Investigation (“FBI”) also opened an investigation into Hannes after receiving information from the Washington State Department of Financial Institutions.
The FBI’s investigation established that Hannes engaged in a scheme to defraud at least 21 investors (“Victims”). The Victims were Hannes’s previous clients, who had established accounts through Woodbury Financial Services. Some of the Victims were Hannes’s friends, while others were referred to Hannes by family and friends. Hannes persuaded the Victims to invest in separate “high rate, tax free” bond investments. Hannes also convinced the Victims to write checks to HFS, or directly to third party companies at Hannes’s request, to invest in the bonds. Hannes also encouraged clients to “roll-over” their investments once their bonds purportedly matured. The investigation, however, revealed there were no bonds or securities attached to these investments. When a Victim demanded the return of their funds or chose not to “re-invest,” Hannes would provide a pay out to those individuals.
As part of the scheme, Hannes falsely claimed to his victims that he pre-purchased the bonds and that the victims’ money was being used to reimburse Hannes for bonds he had purchased in advance on their behalf. Hannes also provided his victims with fictitious account documents falsely indicating the amount of money the investors would make at maturity if they re-invested or requested a full redemption. Again, however, there were not actual bonds or securities connected with these investments.
Ultimately, investigators determined Hannes was operating several investment accounts where he received payment to invest in bonds that did not actually exist. An audit showed that between April of 2012 and March of 2020, approximately 288 checks were written from investors to HFS or entities associated with Hannes. In total, Hannes’s fraudulent scheme resulted in victims losing more than three-million dollars.
“Mr. Hannes’s clients trusted him with their hard-earned money and expected him to safeguard it. Instead, Mr. Hannes pulled them into a fraudulent scheme to enrich himself and leave his investors with nothing,” said U.S. Attorney Waldref. “Today I heard directly from the investors who Mr. Hannes swindled, and my resolve is further strengthened to protect the hard-working people of our community from investment schemes and hold fraudsters accountable.”
“This $3 million loss tragically represents investors’ careful savings, financial freedom, and hopes for the future,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle Field Office. “Not only did Mr. Hannes fail to provide honest investment services, but he also defrauded people he knew by taking advantage of previous business clients, friendships, and referrals for his own gain. Every one of the hundreds of checks he deposited into his own accounts was a betrayal of his responsibilities and relationships.”
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Patrick Cashman.
Spangle, Washington Man Indicted by Grand Jury for Multi-Million Dollar Car Import Fraud SchemeRead the Press Release
Spokane, Washington – On February 21,2024, a federal grand jury for the Eastern District of Washington returned an indictment charging Christopher Lee Terry Sr., age 39, of Spangle, Washington, and his business, Allwest Financial LLC, with fourteen counts of fraud in connection with running a car import fraud scheme that defrauded multiple victims, including an auto finance company and a Canadian auto dealer, out of more than $5 Million between January 2019 and June 2020.
The Indictment alleges that Terry, through his auto wholesaling business, Allwest Financial LLC d/b/a Allwest Auto Remarketing (“Allwest”), defrauded auto financier NextGear Capital Inc. (“NextGear”), and Canadian auto retailer Birchwood Automotive Group Partnership (“Birchwood”), among others, by falsely and fraudulently claiming ownership of hundreds of vehicles that had been imported from Canada and which Allwest was supposedly refurbishing for potential re-sale.
The Indictment alleges that in order to qualify the imported vehicles as collateral for millions of dollars in advance loans from NextGear, Terry and his company used fraudulent documents purporting to show that the imported vehicles were owned, or were in the process of being purchased, by Allwest, when in fact they were not. The Indictment alleges that NextGear relied on Terry’s false and fraudulent representations, believed that Allwest owned the vehicles, that the loans were secured by the vehicles, and that the loans would be paid back once the vehicles were re-sold. However, as alleged in the Indictment, because Allwest did not in fact own the vehicles, any proceeds from any re-sale of the vehicles were owed to the true owner, such as Birchwood, leaving NextGear with outstanding, unsecured, and uncollectible loans to the tune of millions of dollars. In addition, the Indictment alleges that it was part of Terry’s fraud scheme for Terry and Allwest to at times pocket both the fraudulently obtained NextGear financing and the resale proceeds of the vehicle - thereby profiting twice from a vehicle Allwest did not own.
The Indictment alleges that when Terry’s fraud scheme was discovered NextGear, Birchwood, and others sustained losses of more than $5 million due to the scheme.
“Sophisticated business fraud schemes victimize both businesses and consumers and obstruct the ability of honest companies to transact business in an efficient and fair way,” said United States Attorney Waldref. “Regardless of the nature of the fraud, or what type of business, industry, or consumer it impacts and victimizes, we will work closely with our law enforcement partners to hold fraudsters accountable when they prey on innocent members of the community in order to line their own pockets.”
The fraud charges carry maximum sentences of up to 30 years in federal prison. This case was investigated by the Federal Bureau of Investigation, Spokane Resident Agency. Assistant United States Attorneys Tyler Tornabene and Dan Fruchter are prosecuting the case on behalf of the United States.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States v. Christopher Lee Terry Sr. and Allwest Financial LLC, Case No: 2-24-CR-27-TOR-2
South Bend Man Sentenced to 70 Months in PrisonRead the Press Release
SOUTH BEND – De’Quan Briggs, 28 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Briggs was sentenced to 70 months in prison.
According to documents in the case, in June 2021, Briggs, who had an outstanding arrest warrant for violating his federal supervised release, was found in a car with a loaded handgun. The firearm contained a high-capacity magazine and had been reported stolen two weeks previously from a gun shop burglary. Briggs had previously been convicted of at least one felony offense and, as such, was prohibited from possessing the firearm in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the South Bend Police Department and the Indiana State Police Laboratory. The case was prosecuted by Assistant United States Attorney Luke N. Reilander and former AUSA Frank E. Schaffer.
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.
Singapore Resident Pleads Guilty in Manhattan Federal Court to Soliciting Millions of Dollars in Pre-IPO Stock SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty plea today of SHAMOON RAFIQ, a/k/a “Shamoon Omer Rafiq,” a/k/a “Omar Rafiq,” a/k/a “Omer Rafiq,” a resident of Singapore, for engaging in a scheme in which RAFIQ solicited millions of dollars of investors’ money by falsely representing that he was offering investments in shares of stock in privately held companies that had not yet conducted an initial public offering (“pre-IPO stock”), even though in fact he did not actually have those shares to offer, by impersonating senior officials of a reputable family office investment firm, and by engaging in other acts of deception.
U.S. Attorney Damian Williams said: “Shamoon Rafiq ran a brazen scheme from Singapore to defraud U.S. investors who wished to invest in well-known private companies before they went public. This prosecution demonstrates the continued efforts of this Office and our law enforcement partners to pursue those who defraud American investors no matter where the perpetrators are located.”
According to the charging documents and other filings and statements made in court:
SHAMOON RAFIQ was born in the Netherlands and resided in Singapore. RAFIQ was convicted in 2004 in the U.S. District Court for the Eastern District of New York for carrying out a wire fraud scheme in which he purported to sell pre-IPO stock in a privately held company that had not yet conducted its initial public offering when, in fact, RAFIQ did not own or have access to such stock. After serving a 41-month federal prison sentence for that crime, RAFIQ was deported from the United States and eventually relocated to Singapore.
In or about 2020, RAFIQ engaged in a new scheme from Singapore to defraud victims into paying him millions of dollars for alleged investment interests in various pre-IPO stocks that he did not actually own or control.
In connection with his new fraud scheme, RAFIQ fraudulently impersonated two senior officials (“Victim-1” and “Victim-2”) of a prominent family office investment firm (“FamCap”) that manages and invests assets of members of a prominent billionaire family (the “Family”). In July 2020, RAFIQ caused the creation of a fake FamCap website (the “Fake FamCap Website”), which automatically routed users to the official FamCap website, and the creation of fake FamCap email addresses for Victim-1 and Victim-2 that closely resemble, but are slightly different from, their genuine FamCap email addresses (the “Fake FamCap Email Addresses”). The Fake FamCap Website and Fake FamCap Email Addresses for Victim-1 and Victim-2 were created without their or FamCap’s consent. The Fake FamCap Email Addresses also included the names of Victim-1 and Victim-2 without their authorization.
In July 2020, RAFIQ began soliciting millions of dollars from investment firms in New York and elsewhere based on false claims that in exchange for their funds, he would sell them investment interests in a purported special purpose investment vehicle called “[Fam] Capital Technology Fund, LLC” that was supposedly managed by FamCap and allegedly owned pre-IPO stock in Airbnb, Inc., among other companies. For example, as part of this fraudulent scheme, RAFIQ deceived an investment firm based in New York, New York (the “New York Firm”), and one of the firm’s foreign institutional clients (the “Foreign Client”) into making agreements under which the Foreign Client wired about $9 million in mid-August 2020 into an escrow account in New York for anticipated release to a bank account in Singapore to pay RAFIQ for his purported sale of investment interests in the LLC.
In soliciting this $9 million investment, RAFIQ made a variety of false representations, including the following:
- RAFIQ falsely claimed that the LLC was managed by FamCap. In fact, the LLC never existed.
- RAFIQ falsely claimed that the LLC owned pre-IPO shares of Airbnb. In fact, the LLC did not own and could not have owned such stock because the LLC never existed.
- RAFIQ falsely claimed that Victim-1 and Victim-2 had approved of his sale of his alleged interests in the LLC. In fact, Victim-1 and Victim-2 do not know RAFIQ and have confirmed that FamCap was never involved in or approved of any such transaction.
During and to further the goals of this fraudulent scheme, RAFIQ also caused the creation and transmission of emails from the Fake FamCap Email Addresses and fake contracts and deal documents purporting to have been signed by Victim-1 or Victim-2 on behalf of FamCap that neither of them approved. For example, in August 2020, during the course of email communications with the New York Firm and Foreign Client concerning RAFIQ’s alleged sale to them of his purported interests in an alleged FamCap-managed LLC that supposedly held Airbnb shares, RAFIQ copied into the email chain the Fake FamCap Email Addresses to create the false impression that FamCap was involved in and approved of the alleged transaction.
Also pursuant to the fraudulent scheme, RAFIQ solicited over $1 million from an investment group located in California (the “California Group”) in late 2020 by yet again purporting to be a representative of FamCap offering pre-IPO stock for sale. As a result, the California Group wired RAFIQ a total of approximately $1,002,615 in November and December 2020.
* * *
RAFIQ, 50, a resident of Singapore and a citizen of the Netherlands, pled guilty to a one-count Information charging him with conspiring to commit securities fraud and wire fraud, which carries a maximum potential sentence of five years in prison. RAFIQ agreed to pay restitution and forfeiture in the amount of $1,002,615 in connection with his guilty plea.
The maximum potential prison sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of Homeland Security Investigations, the U.S. Postal Inspection Service, the New York City Police Department, and the New York City Sheriff’s Office, and he also thanked the U.S. Securities and Exchange Commission, which conducted a separate parallel investigation, for its assistance, and the Department of Justice’s Office of International Affairs, Interpol, Singapore Police Force, and the Attorney-General’s Chambers of Singapore for their assistance in the extradition of the defendant.
This case is being handled by this Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jared Lenow is in charge of the prosecution.
Sex Offender Indicted for Distributing, Receiving, and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Dustin Smith, age 30, of Rome, New York, was arraigned today on an indictment charging him with distributing, receiving, and possessing child pornography.
United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
Smith was previously convicted in Oneida County Court of Sexual Abuse in the First Degree and is rated a Level 3 Sex Offender. The indictment filed against Smith alleges that, in April 2022, he sent and received images and videos of child pornography with two other individuals using Snapchat, and that he possessed images of child pornography on his cellphone.
The charges carry a mandatory minimum term of 15 years, and a maximum term of 40 years, in prison, a fine of up to $250,000, and a term of supervised release of between 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
HSI investigated this case with assistance from New York State Police Computer Crimes Unit, New York State Parole, and the Oneida County Sheriff’s Office. Assistant U.S. Attorney Jessica N. Carbone is prosecuting the case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Settlement Agreement Reached with Burlington Preschool to Resolve Americans with Disabilities Act ComplaintRead the Press Release
Burlington, Vermont – The U.S. Attorney’s Office for the District of Vermont announced today that it has reached a settlement agreement with Stepping Stones Children’s Center, Inc. (“Stepping Stones”), a childcare center that provides childcare services for children ages 2 years old to 5 years old in Burlington, Vermont, to resolve allegations that Stepping Stones was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement addresses an ADA complaint filed by the parents of a child with a disability, alleging that Stepping Stones terminated the child from the program because of his disability. Under the terms of the settlement agreement, Stepping Stones will implement nondiscriminatory policies, practices, and procedures for children with disabilities who wish to attend their childcare center; train its staff on compliance with Title III of the ADA; and evaluate each request for reasonable modifications on an individualized basis. Stepping Stones has also agreed to pay compensatory damages to the parents who filed the complaint.
“Access to childcare is crucial for all families, including families with children with disabilities,” said United States Attorney Nikolas P. Kerest. “We are glad that Stepping Stones has recognized its obligation to come into compliance with the law and has committed to being inclusive of children with disabilities.”
This matter was handled by Civil Chief and Civil Rights Coordinator Julia “Jules” Torti on behalf of the United States. Stepping Stones was represented by Justin Sherman, Esq. and Liz Mackey, Esq. of Langrock Sperry & Wool, LLP.
For more information on the ADA, visit www.ada.gov or call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD). The Civil Rights Program at the U.S. Attorney’s Office for the District of Vermont enforces federal civil and criminal civil rights laws, including the ADA. For more information on the Civil Rights Program, or to file a complaint, visit: www.justice.gov/usao-vt/civil-rights-program.
The settlement agreement between the United States and Stepping Stones Children's Center, Inc. is available at this link:
Stepping Stones Settlement Agreement.pdfSequoyah County Resident Sentenced for Assault, Child Abuse and Neglect, and Federal Firearm ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Elbert Andrew Fuller, Jr., age 25, of Roland, Oklahoma, was sentenced to a total of 308 months imprisonment for assaulting two police officers and a female victim with a gun and knife, while putting a minor child in harm’s way during the assault.
Fuller was sentenced to 188 months imprisonment for one count of Assault with Intent to Commit Murder in Indian Country, one count of Child Abuse in Indian Country, and one count of Child Neglect in Indian Country. He was sentenced to 120 months imprisonment on three counts of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. These six counts were ordered to run concurrent with each other. The defendant also was sentenced to 120 months imprisonment on one count of Use, Carry, Brandish, or Discharge of a Firearm During and in Relation to a Crime of Violence which was ordered to run consecutive to his other counts for a total sentence of 308 months imprisonment.
The charges arose from an investigation by the Federal Bureau of Investigation, the Roland Police Department, the Cherokee Nation Marshal Service, and the Sequoyah County Sheriff’s Office.
On June 22, 2023, Fuller entered a plea of guilty to all counts. According to investigators, on October 8, 2022, law enforcement responding to a 911 call encountered Fuller leaving a Roland residence carrying an infant. Fuller fired a pistol multiple times at the officers. Fuller dropped the pistol, pulled a large knife, and attempted to stab one of the officers. During the altercation, a family member was able to take the child from Fuller. Fuller was eventually subdued and taken into custody. The crimes occurred in Sequoyah County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
“The defendant’s violent acts endangered multiple people, including a child, and the sentence imposed is certainly fitting punishment,” said United States Attorney Christopher J. Wilson.
The Honorable Keith Starrett, Senior District Judge in the United States District Court for the Southern District of Mississippi, sitting by assignment, presided over the sentencing hearing in Muskogee, Oklahoma. Fuller 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 T. Cameron McEwen represented the United States.
Santa Barbara Man Charged with Coordinating Maritime Smuggling Attempt Resulting in Three Drowning DeathsRead the Press Release
NEWS RELEASE SUMMARY – February 22, 2024
SAN DIEGO – Charges unsealed today against Faustino Romero De La Cruz allege that he organized the attempted smuggling of multiple unauthorized immigrants by boat on April 10, 2022, which resulted in the tragic drowning deaths of three passengers.
Romero was arrested on February 21, 2024, in Santa Barbara. He made his first appearance in federal court in San Diego this afternoon.
According to court records, on April 10, 2022, human smugglers attempted to transport more than 10 unauthorized immigrants from Mexico into the United States aboard a cuddy-style boat. As the vessel approached the shore near the Ocean Beach Pier, it capsized with all passengers aboard. Despite the best efforts of law enforcement and other emergency response personnel, three victims drowned.
According to court records, Homeland Security agents identified Romero as a U.S.-based coordinator who, working with others, arranged for unauthorized immigrants to be smuggled into the United States by land and sea, and then collected thousands of dollars in smuggling fees before transporting them on to Northern California and elsewhere.
“Too many precious lives are needlessly lost in catastrophic incidents like this one,” said U.S. Attorney Tara McGrath. “Case after case demonstrates that smugglers are more interested in maximizing profits than safety, which all too often leads to tragic results. Never trust your life to a smuggler.”
“Maritime human smuggling has proven time and time again to be incredibly dangerous and often results in senseless claimed lives,” said Chad Plantz, special agent in charge for HSI San Diego. “While transnational criminal organizations seek to enrich themselves using the tactic, HSI is committed to using all means at our disposal to investigate and hold accountable those placing human beings at substantial risk of injury and death.”
This case is being prosecuted by Assistant U.S. Attorney James Miao and Special Assistant U.S. Attorney Joel Doolin.
DEFENDANTS Case Number 23cr2458-JES
Faustino Romero De La Cruz Age: 40 Santa Barbara, CA
SUMMARY OF CHARGES
Count 1: Conspiracy to Bring in Certain Aliens Other Than at Designated Port of Entry Resulting in Death – Title 8, U.S.C., Sec. 1324(a)(1)(A)(i), (v)(I), (a)(1)(B)(iv)
Maximum penalty: Life in prison, and $250,000 fine
Counts 2-4, 6: Attempted Bringing in Aliens for Financial Gain – Title 8, U.S.C., Sec. 1324(a)(2)(B)(ii)
Maximum penalty: Ten years in prison, a $250,000 fine
Count 5: Conspiracy to Bring in Certain Aliens Other Than at
Designated Port of Entry – Title 8, U.S.C., Sec. 1324(a)(1)(A)(i), (v)(I), (a)(1)(B)(i)
Maximum penalty: Ten years in prison, a $250,000 fine
Count 7: Transportation of Certain Aliens – Title 8, U.S.C., Sec. 1324(a)(1)(A)(ii)
Maximum penalty: Five years in prison, a $250,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations – San Diego Marine Task Force
United States Border Patrol
United States Customs and Border Protection
United States Coast Guard
San Diego County Sheriff’s Department
San Diego Harbor Police Department
San Diego County Medical Examiner’s Office
Homeland Security Investigations
Santa Barbara County Sheriff’s Office
*The charges and allegations contained in an indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Sanctioned Russian Oligarch and Others Indicted for Sanctions Violations and Money LaunderingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; Lisa O. Monaco, the Deputy Attorney General of the United States; Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”); and David J. Scott, the Special Agent in Charge of the Washington Field Office (“WFO”) of the FBI, announced the unsealing of an Indictment charging sanctioned Russian oligarch and the President and Chairman of a Russian state-owned bank, ANDREY KOSTIN, with participating in two separate schemes that violated U.S. sanctions. In one scheme, KOSTIN and others conspired to evade sanctions and launder funds by using a series of shell companies and strawmen in order to access the U.S. financial system to operate, maintain, and improve KOSTIN’s two superyachts, collectively worth over $135 million. The other scheme charges KOSTIN and two U.S. persons, VADIM WOLFSON and GANNON BOND, for their roles in providing goods, funds, and services to KOSTIN related to a luxury home in Aspen, Colorado, including wiring KOSTIN approximately $12 million after he was sanctioned. WOLFSON and BOND were arrested this morning in Austin, Texas, and Edgewater, New Jersey, respectively, and will be presented in federal courts in Texas and New York today. KOSTIN remains at large and is believed to be in Russia. The case is assigned to U.S. District Judge Gregory H. Woods.
U.S. Attorney Damian Williams said: "As alleged, sanctioned oligarch Andrey Kostin and his co-defendants flouted U.S. sanctions to support his exceptionally lavish lifestyle. Through complex schemes involving shell companies and illicit transactions, Kostin and his associates allegedly laundered funds and illegally made transactions with U.S. currency for the maintenance and enhancement of Kostin’s superyachts and luxury Aspen home, blatantly disregarding U.S. law. This investigation highlights the collaborative efforts of this Office and our law enforcement partners around the globe to uphold critical sanctions put in place to support our national security goals and hold accountable those who seek to undermine them."
Attorney General Merrick B. Garland said: “The Justice Department is more committed than ever to cutting off the flow of illegal funds that are fueling Putin’s war and to holding accountable those who continue to enable it. That is why today we are announcing several additional enforcement actions that the Justice Department has taken to bring prosecutions against and seize assets of sanctioned enablers of the Kremlin and Russian military.”
Deputy Attorney General Lisa O. Monaco said: “Since the onset of Russia’s brutal and unprovoked invasion of Ukraine, the Justice Department has used every tool in our arsenal – including our international partnerships – to target the criminal actors and activity propping up Vladimir Putin, his henchmen, and his illegal war. Over the last two years, our Task Force KleptoCapture has restrained, seized, and obtained judgments to forfeit nearly $700 million in assets from Russian enablers and charged more than 70 individuals for violating international sanctions and export controls levied against Russia. The charges we announce today against oligarchs, facilitators, and money launderers are the next chapter: so long as Russia's aggression continues, so too will our resolve to hold its enablers accountable. We stand firmly with the people of Ukraine.”
FBI Director Christopher A. Wray said: “It has been two years since Russia's unprovoked invasion of Ukraine and the FBI continues to go after the Russian criminals who finance and enable Russia’s war. To the people of Ukraine fighting for their freedom: The FBI remains steadfast in our efforts to disrupt and hold accountable the criminals supporting the Russian War, and we will continue to stand with you to fend off Russian aggression for as long as it takes.”
FBI WFO Special Agent in Charge David J. Scott said: "As alleged, Kostin conspired with the defendants and others to violate U.S. sanctions. Today's indictment demonstrates that the FBI will work with our partners to hold sanctioned oligarchs and their co-conspirators responsible for their crimes and ensure that they cannot use U.S. financial institutions to harbor illicit funds and goods."
As alleged in the Indictment:[1]
KOSTIN is a Russian oligarch who was sanctioned and designated a Specially Designated National (“SDN”) by U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) on April 6, 2018, pursuant to the International Emergency Economic Powers Act (“IEEPA”). From at least on or about April 6, 2018, through at least on or about March 2, 2022, KOSTIN and others, including at times WOLFSON and BOND, participated in schemes to violate IEEPA through the provision of funds, goods, and services, including U.S. financial services and U.S. dollar transactions, to and for KOSTIN’s benefit. KOSTIN also engaged in a scheme to commit money laundering to promote IEEPA violations.
Before and after OFAC sanctioned KOSTIN, he beneficially owned and controlled, through various shell companies, several assets worth tens of millions of dollars, including two superyachts identified as the Sea Rhapsody and Sea & Us. The Sea Rhapsody, valued at approximately $65 million, is a 216-foot superyacht and has six staterooms, including two luxurious master cabins identical in size. This superyacht is equipped with amenities including water toys, gym equipment, an infinity pool, a jacuzzi, a cinema and club area, and customized stationery. The Sea & Us, valued at approximately $70 million, is a 205-foot superyacht that was custom-built for KOSTIN.
KOSTIN and others violated IEEPA on numerous occasions, including by causing U.S. dollar payments to be made for the maintenance, operation, and/or improvement of the Sea Rhapsody and Sea & Us for the benefit of KOSTIN and without an OFAC license, which is required to transact with an SDN. In causing these U.S. dollar payments to be made, KOSTIN and others also committed international money laundering.
KOSTIN also owned a luxury home in Aspen, Colorado, that he purchased for $12.5 million in 2010. From at least on or about April 6, 2018, through at least in or about September 2019, KOSTIN, WOLFSON, BOND, and others participated in a scheme to violate IEEPA by providing funds, goods, and services for the benefit of KOSTIN, whose property and interests in property, including the Aspen home, were blocked as a result of his SDN designation. Specifically, notwithstanding having been designated an SDN by OFAC, KOSTIN and his conspirators schemed to operate, maintain, and improve KOSTIN’s Aspen residence in a manner designed to conceal KOSTIN’s continued ownership of this luxury asset. In addition, in or about September 2019, KOSTIN, WOLFSON, BOND, and others committed additional sanctions violations by dealing in and transferring KOSTIN's blocked property. Specifically, the conspirators arranged to sell the Aspen home and provide KOSTIN with approximately $12 million resulting from the sale.
* * *
KOSTIN, 67, of Russia, is charged with two counts of conspiracy to violate IEEPA, two counts of violating IEEPA, and one count of conspiracy to commit international money laundering, each of which carries a maximum sentence of 20 years in prison.
WOLFSON, 56, of Austin, Texas, a legal permanent resident of the U.S., is charged with one count of conspiracy to violate IEEPA and two counts of violating IEEPA, each of which carries a maximum sentence of 20 years in prison.
BOND, 49, of Edgewater, New Jersey, a U.S. citizen, is charged with one count of conspiracy to violate IEEPA and two counts of violating IEEPA, each of which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI and its Washington Field Office. Mr. Williams further thanked the Department of Justice (“DOJ”)’s National Security Division, Counterintelligence and Export Control Section, and DOJ’s Criminal Division, Money Laundering and Asset Recovery Section for their work on this matter.
Assistant U.S. Attorneys Emily Deininger and David Felton for the Southern District of New York’s Illicit Finance and Money Laundering Unit, and Trial Attorneys Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section and Oleksandra Johnson of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Russian National Pleads Guilty in Connection to over $150 Million Worth of International Transfers, while Additional Russian Nationals and their Company also Indicted as Part of a Continuing National Enforcement Operation by the Department of JusticeRead the Press Release
ATLANTA - Feliks Medvedev, who transferred more than $150 million of foreign currency through U.S. bank accounts in North Georgia, has pleaded guilty to operating an unlicensed money transmitting business. In addition, Alexey Chubarov, Lev Solyannikov, and KSK Group were indicted on February 13, 2024, for the offenses of conspiracy, operating an unlicensed money transmitting business, and 39 counts of money laundering for their alleged respective roles related to Medvedev’s scheme. These prosecutions are a continuation of the Department of Justice’s prioritization of enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States, together with its global partners, imposed against Russia following its invasion of Ukraine.
“The Justice Department is more committed than ever to cutting off the flow of illegal funds that are fueling Putin’s war and to holding accountable those who continue to enable it,” said Attorney General Merrick B. Garland. “That is why today we are announcing several additional enforcement actions that the Justice Department has taken to bring prosecutions against and seize assets of sanctioned enablers of the Kremlin and Russian military.”
“Since the onset of Russia’s brutal and unprovoked invasion of Ukraine, the Justice Department has used every tool in our arsenal – including our international partnerships – to target the criminal actors and activity propping up Vladimir Putin, his henchmen, and his illegal war,” said Deputy Attorney General Lisa Monaco. “Over the last two years, our Task Force KleptoCapture has restrained, seized, and obtained judgments to forfeit nearly $700 million in assets from Russian enablers and charged more than 70 individuals for violating international sanctions and export controls levied against Russia. The charges we announce today against oligarchs, facilitators, and money launderers are the next chapter: so long as Russia's aggression continues, so too will our resolve to hold its enablers accountable. We stand firmly with the people of Ukraine.”
“America’s financial institutions provide critical stability to our economic and national security. Thus, these corporations are rightly the envy of the world. They are not, however, a tool to be exploited for the illegal transfer and laundering of illicit Russian money,” said U.S. Attorney Ryan K. Buchanan. “After fraudulently transferring and partly laundering over $150 million, Feliks Medvedev has pleaded guilty and will face severe consequences for his crimes. The indictment of others involved in his offenses demonstrates our resolve to pursue individuals in the Northern District of Georgia and across the world who seek to facilitate the illegal transfer of Russian money.”
“Medvedev’s guilty plea should serve as a stark warning to those who seek to undermine the security of American financial institutions, the FBI will uncover the truth and hold them accountable,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The indictment of his co-conspirators further demonstrates our steadfast commitment to safeguarding our national and economic security.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Medvedev is a Russian national residing in Buford, Georgia. Medvedev registered eight companies in Georgia that were used to illegally transmit over $150 million in more than 1,300 transactions. The companies were purportedly headquartered in Buford, Georgia, and Dacula, Georgia. The companies did not incur typical business expenses or maintain employees. A large majority of the money transferred into the accounts came from multiple overseas companies and was transferred generally within days to other foreign companies. The money was used, in part, to purchase over $65 million in gold bullion from the Singapore Precious Metals Exchange.
Relatedly, a federal grand jury in the Northern District of Georgia returned an indictment on February 13, 2024, alleging that Defendants Alexey Chubarov, Lev Solyannikov, and KSK Group conspired with Medvedev in the transfer of these funds and then laundered the illegal proceeds. KSK Group is a business consulting firm in Moscow. Chubarov and Solyannikov both worked for KSK Group, and Chubarov was identified as an expert on international structuring.
Chubarov and Solyannikov allegedly informed Medvedev about incoming wires. They then directed Medvedev concerning the outgoing transfers he should make, including the transfer of funds to the Singapore Precious Metals Exchange to purchase gold bullion.
On September 14, 2023, the United States Department of the Treasury, Office of Foreign Asset Control announced that Chubarov and KSK Group were added to the Specially Designated Nationals List of sanctioned entities under Executive Order 14024.
Medvedev’s sentencing is scheduled for May 7, 2024, at 10:00 a.m., before United States District Judge Thomas W. Thrash, Jr.
Medvedev pleaded guilty in United States v. Feliks Medvedev, Criminal Case No. 1:22-CR-184. The new indictment is United States v. Alexey Chubarov, Lev Solyannikov, and KSK Group, Criminal Case No. 1:23-CR-53.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Christopher J. Huber, Norman L. Barnett, and Sekret T. Sneed are prosecuting the case.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Rochester Man Pleads Guilty in Connection with COVID-19 Fraud, Identify Theft, and Possession of Child Sexual Abuse MaterialRead the Press Release
CONCORD – A Rochester man pleaded guilty today in federal court to fraud and identity theft related to his fraudulent applications for CARES Act loans and to possession of child sexual abuse material, U.S. Attorney Jane E. Young announces.
Heath Gauthier, 48, pleaded guilty to wire fraud, attempted wire fraud, aggravated identity theft, and possession of child pornography. U.S. District Court Judge Laplante scheduled sentencing for May 30, 2024. Gauthier was charged with wire fraud and identity theft on February 15, 2023, and was charged with possession of child pornography on August 2, 2023.
Between February 2020 and March 2021, Gauthier fraudulently applied for more than a dozen loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. Gauthier applied for loans for non-existent companies and used the identities of more than ten deceased individuals in his applications, listing them in some applications as owners or employees of the fictitious companies. He also submitted false documents, including fabricated tax documents and counterfeit driver’s licenses, in support of the applications. In total the indictment alleges that Gauthier applied for more than $1 million in CARES Act loan funds.
Gauthier was arrested on February 16, 2023, and investigators executed a search warrant on his residence, where they seized and later searched Gauthier’s electronic devices. During the search, investigators discovered more than 1,500 files that contained child sexual abuse material.
The charging statutes provide a sentence of no greater than 20 years in prison for wire fraud and aggravated identity theft and no greater than 10 years in prison for possession of child pornography. The identity theft charge carries a mandatory minimum sentence of two years and, if a defendant has a qualifying prior office, the child pornography charge carries a mandatory minimum sentence of 10 years. Gauthier also faces at least 5 years of supervised release, and restitution in the amount of at least $199,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The IRS Criminal Investigations and the Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Treasury Inspector General for Tax Administration and the Social Security Office of the Inspector General. Assistant U.S. Attorneys Matthew T. Hunter and Kasey Weiland are prosecuting the case.
During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Retired South Georgia Teacher Admits to Possessing Child Sexual Abuse MaterialRead the Press Release
ALBANY, Ga. – A retired South Georgia school teacher pleaded guilty to possessing child sexual abuse material (CSAM) after authorities located hidden cameras inside his rental property’s bathroom filming young children bathing and undressing.
David Swanson, 61, pleaded guilty to one count of possessing child pornography before U.S. District Judge Louis Sands on Feb. 22. Swanson faces a maximum of 20 years in prison to be followed by a maximum lifetime of supervised release and a $250,000 fine. In addition, Swanson will have to register as a sex offender upon release from prison. Swanson is not eligible for parole.
“Crimes against children are despicable, and it’s unthinkable when teachers or other trusted people are guilty of harming kids,” said U.S. Attorney Peter D. Leary. “Our office prosecutes child predators to the fullest extent of the law. I am thankful for the excellent investigative work by our local and federal law enforcement partners that helped stop a child predator.”
According to court documents, a concerned citizen notified Ray City Police in March 2023 that she found a hidden camera in the home she rented from Swanson. The responding officer located a camera hidden in the bathroom’s ceiling plugged into an extension cord that ran through the attic. The officer also found two more cameras hidden in electrical outlets in the same bathroom. The SD cards from the cameras contained images of four children between the ages of one and 12-years-old taking baths, changing clothes and using the toilet. There was also a video clip of Swanson stepping on the toilet, reaching towards the ceiling and then placing a small black object in his pocket. All of the images were recorded between Jan. 21, 2023, and Feb. 28, 2023.
Authorities checked Swanson’s other rental properties in Lowndes County and Berrien County and did not find additional cameras at the other residences. A search warrant was executed at Swanson’s Valdosta home on March 3, 2023. Agents found approximately 750 images and videos of child sexual abuse material (CSAM) and other incriminating evidence on his electronic devices. Some of the material included children nude in bathrooms, as well as minors engaged in sexually explicit conduct. The cameras were still set to record when they were found and removed from the home. This includes the CSAM that was downloaded as well as the CSAM images that he produced through the use of the hidden cameras. Swanson had recently retired as a teacher in the Lowndes County School System.
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 www.projectsafechildhood.gov.
The case was investigated by Berrien County Sheriff’s Office, Lowndes County Sheriff’s Office, Ray City Police Department and Homeland Security Investigations.
Assistant U.S. Attorney Crawford Seals is prosecuting the case.
Repeat Offender Pleads Guilty to Possession of Child Sexual Abuse MaterialRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Dominick Nardone (45, Orlando) has pleaded guilty to possessing child sexual abuse material. Because Nardone was previously convicted of a child sexual exploitation offense, he faces a minimum mandatory sentence of 10 years, up to 20 years, in federal prison. A sentencing date has not yet been set.
According to court documents, in 2014, Nardone was sentenced to seven years in federal prison for receipt of child sexual abuse material. After completing his prison sentence, Nardone began a term of court supervision. On October 31, 2020, a probation officer conducted an unannounced home visit at Nardone’s residence. When questioned about his use of electronic devices, Nardone admitted that he had used a cellphone to search for child sexual abuse material in the preceding three weeks. The probation officer immediately seized Nardone’s cellphone and had the contents forensically examined. This examination revealed that Nardone had an extensive history of viewing and downloading child sexual abuse material on the cellphone.
This case was investigated by Homeland Security Investigations (HSI) and United States Probation. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
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.
Raleigh Man Sentenced to 7 Years on Child Pornography Charge After Video Chats with Prepubescent MinorsRead the Press Release
RALEIGH, N.C. – Michael Andrew Gilson, of Raleigh, was sentenced today to 84 months in prison for receipt of child pornography. Gilson, 43, pled guilty to the charges. on August 22, 2023.
According to court documents and other information presented in court, on August 9, 2020, the Raleigh Police Department received a call from a woman who reported she had found images of child sexual abuse material (CSAM) on a friend’s iPad. She met with officers and explained that she had been staying the night at the home of defendant Michael Gilson when he lent her his iPad because she couldn’t sleep. While using it, a notification popped up and she discovered images of nude children saved to the device. In the images, Gilson appeared to be video chatting with young girls. She confronted Gilson, and he responded that he was seeking therapy for sexual addiction to juveniles and that he was helping the girls with their “sexual awakening.”
Officers obtained a search warrant for the iPad and for Gilson’s Apple iCloud storage account. A forensic examination of the iPad and iCloud account revealed 61 still images and 26 videos flagged as child sexual abuse material. Many of the minors were prepubescent. All images and videos were recorded from video chats with minors on an anonymous video chat program that Gilson admitted to using. A text chat box is visible in the videos, and in some, Gilson could be seen instructing minors as young as 8 years old to engage in sexual activity. Several files depicted Gilson masturbating while young girls watched.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Raleigh Police Department and Federal Bureau of Investigation (FBI) investigated the case, which Assistant U.S. Attorney Jake D. Pugh prosecuted.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:21-cr-0221-BO.
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Queens Man Indicted for Stealing More Than $1.1 Million in COVID-19 Loan Fraud SchemeRead the Press Release
Today in federal court in Brooklyn, Terry Dor was arraigned on an eight-count indictment charging him with wire fraud, theft of public funds and money laundering in connection with a scheme to steal funds from the Economic Injury Disaster Loan program (EIDL), a United States Small Business Administration (SBA) program that provided emergency funding to distressed businesses during the Covid-19 pandemic. Dor was arrested this morning and arraigned before United States Chief Magistrate Judge Lois Bloom who released him on a $50,000 bond.
Breon Peace, United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the arrest and indictment.
“As alleged, the defendant submitted applications filled with fabricated information in order to steal more than $1 million dollars in government funds intended to help hard-hit small businesses and their employees survive the economic fallout of the COVID-19 pandemic,” stated United States Attorney Peace. “The defendant then laundered and used the stolen funds to buy jewelry and for personal securities trading. Today’s indictment shows that this Office remains committed to identifying and prosecuting those who stole pandemic relief funds.”
“Dor is an alleged opportunist who took advantage of a program meant to help business owners who suffered loss with the pandemic. He allegedly used a sham business to steal more than a million dollars from the EIDL program, decreasing the amount of available funds for those in need,” stated IRS-CI Special Agent-in-Charge Fattorusso. “IRS Criminal Investigation New York remains committed to working with the U.S. Attorney’s Office for the Eastern District of New York to ensure that those who steal from the American taxpayer—to adorn themselves with lavish gifts—are arrested and prosecuted.”
The EIDL provided qualifying small businesses with low-interest loans. The Coronavirus Aid, Relief and Economic Security (CARES) Act expanded EIDL to provide economic support to help offset the temporary loss of revenue experienced by businesses due to the COVID-19 pandemic.
As alleged in the indictment, Dor applied for EIDL loans in 2020 and 2021. In the initial application and subsequent modification requests, Dor claimed that he operated a Brooklyn-based consulting business called Terry Dor Professional Consultants, LLC (TDPC), which, according to the defendant, had more than $575,000 in revenue and $535,000 in expenses during calendar year 2019. In reality, TDPC was a sham business with no legitimate revenue or expenses. Based on Dor’s false claims, the SBA deposited approximately $1,151,000 in EIDL funds to a bank account controlled by Dor via three installments. Dor then wired the EIDL proceeds to other accounts he controlled and used the proceeds to fund personal and non-TDPC expenses. For example, on December 13, 2021, Dor used $125,000 of the EIDL proceeds referenced above to make a purchase at a premium jewelry vendor located in New York City.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Dor faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney David Berman is in charge of the prosecution, with the assistance of Financial Investigator Analyst John Gagliardo and Paralegal Specialist Katrina Batista.
The Defendant:
TERRY DOR
Age: 36
Jamaica, Queens
E.D.N.Y. Docket No. 24-CR-75 (OEM)Punxsutawney Woman Indicted on Social Security Fraud ChargesRead the Press Release
JOHNSTOWN, Pa. – A resident of Punxsutawney, Pennsylvania, has been indicted by a federal grand jury in Johnstown on a charge of theft of government funds, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Patty Merlo, 65, as the sole defendant.
According to the Indictment, from in and around May 2016 to in and around January 2022, Merlo did knowingly, intentionally, and unlawfully embezzle, steal, purloin, and convert to her own use money and a thing of value of the United States or a department or agency thereof, in the form of approximately $91,300 in Social Security Income benefit payments, to which she knew she was not entitled.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Michael L. Mitchell is prosecuting this case on behalf of the government.
The Social Security Administration Office of the Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Puerto Rico Drug Trafficker Sentenced to 18 Years for Managing Cocaine Trafficking Conspiracy that Shipped Dozens of Kilos to the DMV AreaRead the Press Release
WASHINGTON – Rey Rivera Ruiz, 40, of San Juan, Puerto Rico, was sentenced today to 18 years in prison for managing a Puerto Rico drug trafficking organization responsible for shipping dozens of kilograms of cocaine to the Washington D.C. metro area.
The sentencing was announced by U.S. Attorney Matthew M. Graves; FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division; and Acting Inspector in Charge Ajay Lall, of the United States Postal Inspection Service, Washington Division.
In addition to the prison term, U.S. District Court Chief Judge James E. Boasberg ordered Rivera Ruiz to serve five years of supervised release.
Rivera Ruiz, aka “Gordo,” pleaded guilty on May 26, 2022, to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. As part of his plea agreement, Rivera Ruiz admitted he was responsible for distributing between 50 and 150 kilos of cocaine as part of the conspiracy. He also admitted he managed or supervised the criminal activity, which involved at least five co-conspirators.
According to the government’s evidence, beginning in October 2019, Rivera Ruiz, assisted by several other individuals, shipped multiple kilograms of cocaine every month from post offices in San Juan to the mainland U.S., including addresses in the Washington, D.C. area, via the U.S. Postal Service. Investigators estimated that the members of the conspiracy shipped at least 65 parcels containing up to two kilograms of cocaine each. Once the cocaine arrived in the Washington, D.C. area, local drug dealers broke up the bricks into smaller portions and distributed the drug.
Additionally, the Puerto Rico drug trafficking organization’s members allegedly traveled from San Juan to the Washington, D.C. area to collect drug sales proceeds, and then surreptitiously traveled on commercial airliners to return the money to Ruiz Rivera and others.
On April 15, 2021, investigators executed a search warrant at the home of Ruiz Rivera and found a USPS receipt for a parcel which had been mailed April 9. Law enforcement then seized the parcel while it was still in the mail stream and found it contained a kilo of cocaine.
In total, 10 individuals have been convicted for their roles in this drug trafficking conspiracy.
On November 8, 2023, co-conspirator Jann Jousten Aponte-Rivera, 27, of San Juan, was found guilty in the District of Columbia of participating in the drug-related murder of Shantay Myisha Butler, 42, of Frederick, Maryland. Specifically, Aponte-Rivera was found guilty in U.S. District Court of conspiracy to distribute five kilograms or more of cocaine, one count of causing the intentional death of Ms. Butler while engaged in drug trafficking conspiracy to distribute more than 5 kilos of cocaine, and one count of causing the death of Ms. Butler through the use of a firearm during and in relation to a drug-trafficking offense.
Aponte-Rivera, 27 was sentenced yesterday, February 21, 2024, to 50 years in prison.
The murder took place October 14, 2020. At that time, a D.C.-area drug dealer owed thousands of dollars to the Puerto Rico drug trafficking organization. In October 2020, after first meeting with Rivera-Ruiz and supplying him with some of the proceeds believed to be owed, the D.C.-area dealer was then lured by Aponte-Rivera and co-conspirator Michael Gabriel Hernandez Rivera, 21, to a desolate part of Levittown, Puerto Rico, under the guise that they would be fishing. When they arrived, Ms. Butler was in the passenger seat of the vehicle driven by the local drug trafficker. Then, both Aponte-Rivera and Hernandez Rivera opened fired on the vehicle. The D.C.-are drug dealer was able to drive off as the shots were fired, while sustaining gunshot wounds, but Ms. Butler sustained a gunshot wound to the head and appears to have died instantly. Miraculously, the D.C.-area dealer managed to escape and survived after months in a coma and medical treatment. The D.C.-area dealer has since pleaded guilty to his involvement in the drug-trafficking conspiracy.
The charged drug trafficking conspiracy ended in April 2021 when law enforcement arrested Rivera, Aponte-Rivera, and Hernandez-Rivera. The three men have remained in custody since. Aponte-Rivera is scheduled for sentencing on February 8, 2024
In announcing the verdict, U.S. Attorney Graves and the FBI’s SAC Scott commended investigators at the FBI, the U.S. Postal Inspection Service (USPIS), the Montgomery Co. Police Department (MCPD), Frederick City Police Department, San Juan USPIS OIG, the Puerto Rico Police Department (Bayamon Homicide Division), the Police of Rico San Juan Homicide Division, and the Institute of Forensic Sciences of Puerto Rico.
The case was prosecuted by Assistant U.S. Attorneys Anthony Scarpelli and David T. Henek, of the Violence Reduction and Trafficking Offenses section of the U.S. Attorney’s Office. Former Assistant U.S. Attorneys Rachel Fletcher and Dineen Baker assisted in the investigation and charging of this case.
Pittsburgh Resident Indicted for Fraud and Conspiracy to Maliciously Destroy East Carson Street Property by FireRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of bankruptcy fraud, mail fraud, conspiracy to maliciously destroy property by fire, and malicious destruction of property by fire, United States Attorney Eric G. Olshan announced today.
The four-count Indictment named Prasad Margabandhu, 47, as the sole defendant.
According to the Indictment, from March 2019 to June 2022, Margabandhu engaged in a scheme to defraud the bankruptcy court by filing multiple bankruptcy petitions in the names of companies he controlled called “RSP Pittsburgh” and “Shane Tracy Enterprises” solely to delay efforts by creditors such as the mortgage holder and taxing bodies to execute on judgments against a property located at 1925 East Carson Street. The Indictment also charges that, in June of 2022, Margabandhu conspired with at least one other person to set fire to the property in order to benefit from an insurance policy on the property. The Indictment further alleges that, on August 31, 2023, Margabandhu committed mail fraud in furtherance of the scheme.
The law provides for a maximum sentence of five years for the bankruptcy fraud count and a fine of up to $250,000. The mail fraud count provides a maximum sentence of 20 years imprisonment and a fine of up to $250,000. The conspiracy to maliciously destroy property by fire and malicious destruction of property by fire counts each provide for a minimum sentence of five years and up to 20 years in prison, as well as fines totaling up to $500,000. 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 Attorneys Gregory C. Melucci and Shaun E. Sweeney are prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service, Federal Bureau of Investigation, and Office of the United States Trustee conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.