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20 February 2024
Gangster Disciples Assistant Chief Enforcer Sentenced to Life in Prison for Gang-Related MurdersRead the Press Release
MACON, Ga. – A high-ranking member of the Gangster Disciples convicted of a murderous conspiracy stemming from gang-related retribution that resulted in the shooting deaths of three Athens, Georgia, men was sentenced to life in federal prison without parole today.
Lesley Chappell Green, aka “Grip,” 35, of Stone Mountain, was sentenced to life in prison by Chief U.S. District Judge Marc Treadwell on Feb. 20. Green, along with two co-defendants, was convicted by a federal jury of Racketeer Influenced and Corruption Organization (RICO) conspiracy on Aug. 17, 2023. Green is not eligible for parole.
“No sentence could ever ease the pain that Lesley Green inflicted on the families of the murder victims in this tragic case,” said U.S. Attorney Peter D. Leary. “The Gangster Disciples are a strategically violent organization whose members willingly committed these monstrous crimes. The U.S. Attorney’s Office for the Middle District of Georgia will join with our law enforcement partners to prosecute such crimes to the fullest extent of the law.”
“While this life sentence can never undo the loss of the affected family, it sends a message that justice will prevail,” said Athens-Clarke County Police Chief Jerry Saulters. “We are grateful to our officers for their continued support of this case and those involved in the prosecution. Our community is safer because of your efforts.”
“Protecting the safety of our communities is fundamental to what we do at the FBI,” said Robert Gibbs, Supervisory Senior Special Agent of FBI Atlanta Athens office. “The FBI is committed to reducing violent crime and combating the threat people like Lesley Green pose to our communities and residents. We are proud to work alongside our local, state and federal partners to bring violent members of criminal organizations the Gangster Disciples to justice.”
Two co-defendants convicted with Green at trial will be sentenced on March 20 in Macon:
Philmon Deshawn Chambers, aka “Dolla Phil,” 35, of Atlanta was convicted of Racketeer Influenced and Corruption Organization (RICO) conspiracy; Violent Crime in Aid of Racketeering - Murder (VICAR-Murder); Carry and Use of a Firearm During and In Relation to a Crime of Violence; and Causing the Death of a Person Using a Firearm. Chambers faces a mandatory minimum sentence of life in prison for the VICAR-Murder offense, and a maximum of life in prison for each of the remaining offenses.
Co-defendant Andrea Paige Browner, aka “Drea,” 29, of Athens, Georgia, was convicted of Racketeer Influenced and Corruption Organization (RICO) conspiracy; Violent Crime in Aid of Racketeering - Murder (VICAR-Murder); and Causing the Death of a Person Using a Firearm. Browner faces a mandatory minimum sentence of life in prison for the VICAR-Murder offense, and a maximum of life in prison for each of the remaining offenses.
Two co-defendants previously entered guilty pleas and will be sentenced on March 22 in Macon:
Robert Maurice Carlisle, aka “Different,” 37, of Lithonia, Georgia, pleaded guilty to Racketeer Influenced and Corruption Organization (RICO) conspiracy on June 8, and is facing a maximum sentence of life in prison; and
Shabazz Larry Guidry, aka “Lil Larry,” 29, of Decatur, Georgia, pleaded guilty to Racketeer Influenced and Corruption Organization (RICO) conspiracy on June 8 and is facing a maximum sentence of life in prison.
According to court documents, Chambers held a “Position of Authority” within the national Gangster Disciples criminal organization, which included overseeing members of the “Enforcement Team.” The Enforcement Team is directed to discipline gang members using physical assault or murder. Co-defendant Green was a member of the Enforcement Team and held the title of “Assistant Chief Enforcer.” Co-defendant Browner was a member of the “Sisters of the Struggle” (SOS), a parallel female component of the Gangster Disciples, and held a leadership position in the gang.
Evidence presented at trial proved that on Dec. 10, 2018, Gangster Disciples member Walter Brown was murdered in Athens, Georgia. Chambers and Browner sought retaliation for Brown’s death and believed three unnamed Athens residents were responsible. On Dec. 14, 2018, Browner met Rodriquez Apollo Rucker, of Athens, at a downtown Athens hotel and learned that Rucker was related to one of the individuals she believed killed Brown. Browner texted Chambers, and Chambers came to the motel. Chambers followed Rucker home and shot and killed him. Browner notified an associate of the Gangster Disciples that she and Chambers would be leaving town because the police would be looking for them.
Browner was taken into custody in Mt. Enterprise, Texas, on Dec. 15, and Chambers got away. Chambers was suspicious that someone was cooperating with law enforcement and focused his suspicions on Derrick Ruff and Joshua Jackson who were, in fact, not cooperating with law enforcement. Chambers incorrectly concluded that Ruff and Jackson were “snitches” and directed Green, who held a subordinate position on the Enforcement Team, to carry out the murders of Ruff and Jackson.
Text messages and intercepted phone calls between Chambers, Green, Carlisle and Guidry revealed that Ruff and Jackson were lured by Green, as directed by Chambers, to drive from Athens to Lawrenceville to break into storage sheds and steal items to send to Chambers as “aid and assistance” as he was hiding out from law enforcement in a Gangster Disciple “safe house” in Killeen, Texas. The ruse worked, and Ruff and Jackson were murdered on Dec. 19 and their bodies concealed in the storage unit until March 17, 2019, when police with the assistance of cadaver sniffing dogs located them. Additional messages between Chambers, Green, Carlisle and Guidry showed that they conspired to dispose of the victims’ bodies, which included potentially burning the bodies or dumping the bodies in a landfill. Law enforcement recovered the bodies and made arrests before these plans could be carried out.
This case is being prosecuted as part of the joint federal state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is being investigated by FBI Athens Resident Agency Middle Georgia Safe Streets Gang Task Force, Athens-Clarke County Police Department and the Gwinnett County Police Department.
Assistant U.S. Attorney Mike Morrison of the Middle District of Georgia is prosecuting the case with assistance from Assistant U.S. Attorney Stuart Walker of the Middle District of Georgia and the Department of Justice’s Criminal Division’s Violent Crimes and Racketeering Section.
Former bank manager sentenced to 3+ years in prison for theft from customer accountsRead the Press Release
Tacoma –A 44-year-old former bank manager from Battle Ground, Washington, was sentenced today in U.S. District Court in Tacoma to 42 months in prison for Bank Fraud and Aggravated Identify Theft, announced U.S. Attorney Tessa M. Gorman. Brian Davie, a former branch manager at Wells Fargo, used unauthorized cash withdrawals, money transfers, and cashier’s checks to steal over $1 million. Davie targeted elderly and vulnerable customers. Eight victims have been identified. One woman had more than $566,000 stolen from her retirement accounts.
At today’s sentencing hearing U.S. District Judge Benjamin H. Settle said, “The wake of damage in this case is large. It involved multiple victims over some time... Our society depends on the trust of those who hold our finances.”
Davie worked for Wells Fargo in Battle Ground from March of 2014 until he was fired in June 2019. According to records in the case, Davie used his position as a manager at the branch to conduct unauthorized transactions. Davie had access to customer files containing information about bank account balances. Davie hid his criminal activity by repeatedly exchanging cashier’s checks until they were small enough to cash without triggering banking reporting requirements.
Davie continued undetected because he stole from elderly customers who might be less likely to closely monitor their account balances. Some of Davie’s victims had dementia or had limited English skills and did not understand banking transactions. In at least one case, Davie failed to file the paperwork to install a victim’s relative as a co-signer on the victim’s accounts. That failure prevented the relative from being able to monitor the account and detect the fraudulent transactions.
Davie deposited some of the stolen money in an account he created in the name of a relative’s business. He made some of the cashier’s checks payable to that relative or to the business account he created. Much of the money was withdrawn as cash.
In all, Davie embezzled S1,279,840 from victim accounts. Wells Fargo partially reimbursed victims for their losses.
Judge Settle will decide the amount of restitution Davie owes on March 18, 2024.
In asking for a four-year prison sentence, Assistant United States Attorney Zachary Dillon wrote to the court, “Bank fraud and aggravated identity theft cause devastating effects on their victims. It can often take years or even decades to undo the impact of identity theft and to untangle the impact it had on your finances and your credit score. Let alone the untold psychological damage it causes when you are unable to trust the government institutions that are designed to protect you. As a bank manager, Defendant knew better.”
This case was investigated by the FBI with assistance from the Wells Fargo investigation team.
This case is being prosecuted by Assistant United States Attorney Zachary Dillon.
Former VA Pharmacy Tech Sentenced to Prison for Stealing Prescription Medications from VeteransRead the Press Release
SAN ANTONIO – A Kerrville man was sentenced in a federal court in San Antonio to 42 months in prison for conspiracy to possess with intent to distribute a controlled substance, theft of government property and possession of stolen mail.
According to court documents, Scott Mitchell Brown, 38, was a pharmacy technician at the Veterans Affairs (VA) Medical Center in Kerrville. Using his position, Brown devised a scheme to steal narcotics that were being shipped from the pharmacy to VA patients, stealing the narcotics and selling them for profit to individuals in the Kerr County area.
One of the individuals was his codefendant John Swiencki. Swiencki introduced Brown to another codefendant, David Jeffrey Hughes Jr. Brown and Hughes proceeded to break into mailboxes and steal prescribed narcotics from veterans, using patient records obtained by Brown to identify the mailboxes.
In September 2022, Swiencki was sentenced to 12 months in prison. Hughes was sentenced to 35 months in prison in December 2022.
“Brown's misuse of his position with the VA is a repugnant betrayal by a public servant against our nation’s veterans,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “These veterans rely on the care and compassion of the VA to assist them with ailments and disabilities. Instead, the veterans victimized by Brown and his codefendants were met with cruelty and greed. My office and the Department of Justice will continue to seek justice for those who have sacrificed so much for our country.”
“Medical professionals stealing controlled substances intended for our nation’s veterans cannot be tolerated. This sentence should send a strong message that those who would abuse their positions of trust will be caught and held accountable,” said Special Agent in Charge Kris Raper of the VA Office of Inspector General’s South Central Field Office. “The VA OIG thanks its law enforcement partners and the US Attorney’s Office for their efforts in this joint investigation.”
The Department of Veterans Affairs Office of Inspector General, Drug Enforcement Administration, U.S. Postal Inspection Service, VA Police, Kerr County Sheriff's Office, Kerrville Police Department, and Kerr County District Attorney's Office investigated the case.
Assistant U.S. Attorney Fidel Esparza III prosecuted the case.
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Former Tax Preparer Pleads Guilty in Pandemic Unemployment Fraud SchemeRead the Press Release
DETROIT - Christopher Niebel, a former tax preparer who did business as “Tax Guy Chris,” pleaded guilty today to fraud and identity theft charges resulting from his participation in a pandemic unemployment insurance fraud scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Charles Miller of the Internal Revenue Service-Criminal Investigation Detroit Field Office and Michigan Unemployment Insurance Agency Director Julia Dale.
Niebel, 45, pleaded guilty to one count of wire fraud and one count of aggravated identity theft arising out of a scheme in which Niebel used stolen identities to submit fraudulent claims for unemployment insurance benefits during the Covid 19 pandemic.
According to the plea agreement, at the beginning of the pandemic, Niebel owned and operated a tax preparation service (“Tax Guy Chris”) in Allen Park, Michigan. Niebel also worked seasonally as a manager for Party City, a New-Jersey-based retail chain selling party supplies. Through his employment at Party City (a job he had held for many years), Niebel had access to the files of individuals who had worked or applied to work at the company. These files included the U.S. Citizenship and Immigration Service’s I-9 employment verification forms of Party City employees and applicants, in which the applicants documented their eligibility for employment in the United States. In approximately 2019, Niebel stole a number of these I-9 forms from Party City, which contained a substantial volume of personal identifying information (PII) of the applicants (including names, social security numbers, and dates of birth). Niebel filed these documents away for his future use.
Once Pandemic Unemployment Assistance (PUA) funds became available, Niebel used the PII he had appropriated from Party City in a scheme to defraud the Michigan Unemployment Insurance Agency by submitting fictitious claims for those benefits. Specifically, Niebel submitted electronic applications seeking pandemic unemployment benefits using the PII of applicants for jobs with Party City, without the authorization, approval, or knowledge of those individuals. Niebel intentionally used the PII of individuals who were not from Michigan in submitting these claims, correctly surmising that such individuals would be unlikely to have submitted their own unemployment insurance claims in Michigan and thus making detection less likely. Niebel opened numerous bank accounts in Michigan in order to capture the PUA funds, which were wired to those accounts. After capturing the pandemic unemployment benefits from these fraudulent applications, Niebel spent the money on a variety of personal expenses, including food, lodging, lottery tickets, and casino gambling,
Over the course of the scheme, Niebel obtained approximately $512,000 in pandemic unemployment assistance funds to which he was not entitled.
“Stealing money from pandemic benefit programs is a serious offense that harms both the intended beneficiaries and taxpayers. Doing so by stealing people’s identities further compounds the harm to the public,” said U.S. Attorney Ison. “Today’s guilty plea is an important step towards ensuring accountability for Mr. Niebel’s crimes.”
"Christopher Niebel fraudulently obtained unemployment insurance benefits by submitting claims using the names of identity theft victims. Niebel directed that the stolen benefits be deposited into bank accounts under his control. We will continue to work with our law enforcement and state workforce agency partners to protect the integrity of unemployment insurance benefit programs," said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General.
“With today’s guilty plea, Christopher Niebel became another example of an individual who callously took advantage of pandemic benefit programs and was caught,” said Charles Miller, Special Agent in Charge of IRS-CI’s Detroit Field Office. “In this case, Niebel sought to defraud the U.S. Government and steal funds from our local citizens, for whom these funds were intended to aid and provide much needed relief during the Covid-19 pandemic. IRS-CI, along with our law enforcement partners, remains committed to combat and prevent this type of pandemic-related fraud.”
“It is astounding the selfish schemes fraudsters cook up using fake identities to steal money meant for hard-working Michiganders,” said Michigan Unemployment Insurance Agency Director Julia Dale. “At the start of the pandemic, so many people needed help and all Chris Niebel thought about was how he could game the system for his personal gain. His actions – and those of more than 160 others charged so far with unemployment fraud – erodes the public’s trust. We won’t let that get in the way of wide-ranging reforms to win back that trust and position the Michigan UIA as a national model for fast, fair, and fraud-free service.”
Sentencing is set for May 21, 2024, before United States District Judge Stephen J. Murphy III. Niebel faces a statutory maximum of 20 years imprisonment on the wire fraud count. The aggravated identity theft charge carries a two-year mandatory sentence of imprisonment, which must run consecutively to any custodial time imposed on the wire fraud charge.
The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted jointly by the Department of Labor-Office of Inspector General and the Internal Revenue Service-Criminal Investigation.
Former Portland Man Sentenced to 20 Years in Federal Prison for Sexually Abusing Multiple ChildrenRead the Press Release
PORTLAND, Ore.—A former Portland resident was sentenced to 20 years in federal prison today for sexually abusing multiple children, videorecording and photographing the abuse, and posting the illicit videos and photos on a private Snapchat page he maintained and used to entice other children to produce and share sexually explicit images of themselves.
Rolando Daniel Benitez, 30, was sentenced to 240 months in federal prison and 10 years’ supervised release.
According to court documents, in July and August 2019, Benitez, pretending to be a 15-year-old boy named “Marcos,” sexually abused two children, then ages 14 and 17, used his cell phone to videorecord and photograph the abuse, and posted the child sexual abuse material to a private Snapchat story page he maintained. In at least one of the images posted to Snapchat, Benitez’s online alias “Marcos” was written with black ink on one of the children’s bodies. On at least one occasion, Benitez sexually abused both minor victims together.
Investigators later discovered that Benitez, who moved to Washington state while the investigation was pending, used his Snapchat story page to entice other children to produce and send him sexually explicit images of themselves. Benitez only allowed girls to join and view his private Snapchat stories, and only after the girls complied with his “rules” by sending him photos of their exposed bodies. He further required some of the girls to write and photograph his online alias on their bodies.
A local investigation of Benitez’s crimes was opened after one of his child victims submitted a tip to the National Center for Missing and Exploited Children’s CyberTipline. The victim included Benitez’s full name and phone number in the report and pleaded with authorities to “please stop this man.” Less than a month later, Benitez was arrested in Auburn, Washington, for sexually abusing a 12-year-old child he met on SnapChat.
On January 26, 2021, Benitez was charged by federal criminal complaint in the District of Oregon with producing, advertising, receiving, and possessing child pornography. On October 5, 2023, he pleaded guilty to a three-count criminal information charging him with two counts of sexually exploiting children, and one count of possessing child pornography.
Benitez’s federal plea agreement is part of a global resolution between the U.S. Attorney’s Office for the District of Oregon and the King County, Washington, Prosecuting Attorney’s Office. On July 7, 2023, Benitez was sentenced in King County Superior Court to 136 months in state prison and a life-term of community custody (supervised release) for his abuse of the 12-year-old child in Auburn. Benitez’s federal and state sentences will run concurrently.
This case was investigated by the Portland Police Bureau and FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the Auburn, Washington, Police Department. It was prosecuted by Gary Y. Sussman, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, they re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
FBI Portland’s CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state, and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Bank Employee Convicted After Four-Day Trial for Using His Position to Facilitate a Bank Fraud SchemeRead the Press Release
Greenbelt, Maryland – After deliberating less than 90 minutes, a federal jury convicted Jalen Craig McMillan, age 30, of Jessup, Maryland, for conspiracy to commit bank fraud, bank fraud and aggravated identity theft. The jury returned its verdict late on February 16, 2024.
The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland and Special Agent in Charge Christina Bentham of the U.S. Secret Service – Baltimore Field Office.
According to the evidence presented at his four-day trial, McMillan used his position as a “Member Service Representative” at a federal credit union to facilitate both the opening of accounts in the names of identity theft victims and subsequent financial transactions, including assisting with loans. As detailed at trial and in court documents, co-defendant Archie Paul and his co-conspirators obtained, possessed and used fictitious identities and the personal identifying information (“PII”) of real persons (the “victims”), which Paul and co-defendant John Fitzgerald Washington used to manufacture and procure false identification documents displaying the PII of the victims, but photographs of others. Paul, co-defendant Tiffany Rainel Williams and others then used the false identification documents to impersonate the victims and with the help of McMillan and other conspirators, open bank accounts and conduct financial transactions in their names, including making large withdrawals from the victims’ accounts.
In addition to the conspiracy and bank fraud charges, McMillan was convicted of aggravated identity theft for providing the identifying information of a bank customer to Paul, knowing that it would be used to facilitate the fraud. Specifically, the evidence proved that McMillan used his special access to the bank’s customer database to steal confidential PII belonging to Victim 5, a customer at the bank. McMillan provided that information to Paul. A co-conspirator subsequently opened a bank account using Victim 4’s PII and Victim 5’s banking information. McMillan serviced the transaction and assisted the co-conspirator in obtaining a $10,000 loan in Victim 4’s name, which the co-conspirator immediately withdrew in cash.
Trial evidence proved that the conspirators intended to fraudulently obtain more than $400,000 from the bank and successfully defrauded the bank of more than $150,000.
Co-defendants Paul Archie, a/k/a “Carter Hill” and “Zion Davis,” age 31, of Laurel, Maryland; John Fitzgerald Washington, age 52, of Waldorf, Maryland, and Tiffany Rainel Williams, age 37, of Glenarden, Maryland, previously pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
McMillan faces a maximum sentence of 30 years in federal prison for the conspiracy and for each count of bank fraud and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed for aggravated identity theft. U.S. District Judge Peter J. Messitte has scheduled sentencing for McMillan on June5, 2024, at 2:30 p.m.
U.S. Attorney Erek L. Barron commended the U.S. Secret Service for its work in the investigation and thanked the City of Laurel Police Department for its assistance. Mr. Barron also thanked Assistant United States Attorneys Bijon Mostoufi and Ranganath Manthripragada, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Foreign National Pleads Guilty to Role in Cybercrime Schemes Involving Tens of Millions of Dollars in LossesRead the Press Release
United States Attorney Susan Lehr announced that Vyacheslav Igorevich Penchukov pleaded guilty on February 15, 2024, in federal court in Lincoln, Nebraska for his role in two separate and wide-ranging malware schemes involving tens of millions of dollars in losses.
Penchukov was a leader of two prolific malware groups that infected thousands of computers with malicious software. These criminal groups stole millions of dollars from their victims and even attacked a major hospital with ransomware, leaving it unable to provide critical care to patients for over two weeks,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Before his arrest and extradition to the United States, the defendant was a fugitive on the FBI’s most wanted list for nearly a decade. Today’s guilty pleas should serve as a clear warning: the Justice Department will never stop in its pursuit of cybercriminals.”
According to court documents, Vyacheslav Igorevich Penchukov, also known as Vyacheslav Igoravich Andreev and Tank, 37, of Donetsk, helped lead a wide-ranging racketeering enterprise and conspiracy that infected thousands of business computers with malicious software known as “Zeus” beginning in May 2009. After installing “Zeus” without authorization on victims’ computers, the enterprise then used the malicious software to capture bank account information, passwords, personal identification numbers, and similar information necessary to log into online banking accounts. Penchukov and his co-conspirators then falsely represented to banks that they were employees of the victims and authorized to make transfers of funds from the victims’ bank accounts, causing the banks to make unauthorized transfers of funds from the victims’ accounts, resulting in millions of dollars in losses to the victims. The enterprise used residents of the United States and elsewhere as “money mules” to receive wired funds from victims’ bank accounts into their own bank accounts, who then withdrew and wired funds overseas to accounts controlled by Penchukov’s co-conspirators.
Penchukov was charged with these offenses in the District of Nebraska. Given the severity of the charges in the case and the harm posed to American victims, Penchukov was added to the FBI’s Cyber Most Wanted List.
“The U.S. Attorney’s Office for the District of Nebraska, in concert with the U.S. Attorney’s Office for the Eastern District of North Carolina and Justice Department’s Computer Crime and Intellectual Property Section, successfully coordinated the prosecution and plea of Penchukov,” said U.S. Attorney Susan T. Lehr for the District of Nebraska. “This case demonstrates that cybercrime can affect anyone, no matter where they are. It also demonstrates that no matter where the cybercriminals are, the department can and will bring them to justice.”
Despite being added to the FBI’s Cyber Most Wanted List, Penchukov returned to criminal activity by helping lead a conspiracy that infected victim computers with IcedID or Bokbot, a new malware, from at least November 2018 through February 2021. IcedID was a sophisticated form of malicious software that collected and transmitted personal information from victims, including credentials for banking accounts. Penchukov and his co-conspirators used this information to steal from IcedID’s victims. IcedID also provided access to infected computers for other forms of malicious software, including ransomware. One such victim of this ransomware attack was the University of Vermont Medical Center, causing the loss of over $30 million from this victim alone, and left the medical center unable to provide many critical patient services for over two weeks, creating a risk of death or serious bodily injury to patients. Penchukov was charged with these offenses in the Eastern District of North Carolina.
“Malware like IcedID bleeds billions from the American economy and puts our critical infrastructure and national security at risk,” said U.S. Attorney Michael Easley for the Eastern District of North Carolina. “The Justice Department and FBI Cyber Squad won’t stand by and watch it happen, and won’t quit coming for the world’s most wanted cybercriminals, no matter where they are in the world. This operation removed a key player from one of the world’s most notorious cybercriminal rings. Extradition is real. Anyone who infects American computers had better be prepared to answer to an American judge.”
“Core to the FBI’s cyber strategy is our willingness to play the long game and take players off the field. Vyacheslav Penchukov was a prolific criminal for over a decade and his criminal activities caused millions in damages,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “The FBI would like to thank our partners in both public and private sectors, and domestically and globally, for helping us bring Penchukov to justice.”
Penchukov was arrested in Switzerland in 2022 and extradited to the United States in 2023.
Penchukov pleaded guilty to one count of conspiracy to commit a racketeer influenced and corrupt organizations (RICO) act offense for his leadership role in the “Zeus” enterprise. Penchukov (as Andreev) also pleaded guilty to one count of conspiracy to commit wire fraud for his leadership role in the IcedID malware group. He is scheduled to be sentenced by Senior United States District Court Judge John M. Gerrard on May 9, 2024 and faces a maximum penalty of 20 years in prison for each count. Judge Gerrard will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Omaha and Charlotte Field Offices are investigating the case.
Assistant Deputy Chief William A. Hall Jr. and Senior Counsels Frank Lin and Ryan K.J. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney John E. Higgins for the District of Nebraska, and Assistant U.S. Attorney Brad DeVoe for the Eastern District of North Carolina are prosecuting the case.
The Justice Department’s Office of International Affairs worked with the Swiss Federal Office of Justice to secure the arrest and extradition of Penchukov.
Fernandina Beach Man Pleads Guilty to Attempting to Entice an 11-Year-Old to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that William Rand Paige, Jr. (50, Fernandina Beach) has pleaded guilty to using the internet to attempt to entice a 11-year-old child to engage in sexual activity. Paige faces a minimum mandatory penalty of 10 years, up to life, in federal prison and a potential life term of supervised release. A sentencing date has not yet been set. Paige was arrested on December 18, 2023, and has since been detained.
According to court documents, on November 29, 2023, an undercover FBI agent in Jacksonville was conducting an online undercover operation to identify individuals who were seeking to meet and engage in sexual activity with children. Posing as a person with access to an 11-year-old child, the undercover agent was online in a particular social messaging app when he was contacted by an individual using the app user name “ah..904,” subsequently identified as Paige. After learning the age of the “child,” Paige asked the agent if he and the “child” would “like her to be touched all over.” In a series of online conversations on the app and emails from November 29 through December 11, 2023, Paige discussed his desire to meet the “child” and engage in sexual activity with her. On December 11, 2023, Paige contacted the undercover agent online and stated “What are your thoughts on meeting? You think [the “child”] would be receptive? Do you want to have it happen?” On December 4 and again on December 11, 2023, Paige sent the undercover agent several videos depicting young children being sexually abused.
On December 18, 2023, FBI agents executed a federal search warrant at Paige’s residence and arrested Paige. A review of the content on Paige’s cellphone revealed that it contained at least one photo depicting the sexual abuse of a child, as well as the email account used by Paige to communicate with the undercover agent.
This case was investigated by the Federal Bureau of Investigation, the Nassau County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fentanyl Trafficker Who Attempted to Retaliate Against and Intimidate Witnesses Sentenced to More Than 24 Years in Federal PrisonRead the Press Release
PITTSBURGH, Pa. - A former resident of Verona, Pennsylvania, has been sentenced in federal court to 293 months of imprisonment and 10 years of supervised release following his conviction for conspiracy to distribute 40 grams or more of fentanyl, United States Attorney Eric G. Olshan announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Jamal Knox, 29.
Knox was sentenced today following his conviction at trial in December 2022. Evidence introduced at trial established that, from approximately September 2017 to November 2019, Knox supplied fentanyl to large-scale drug traffickers who referred to themselves as Hustlas Don’t Sleep. During the conspiracy, Knox possessed multiple firearms, including an AR-15-style assault rifle and various handguns. Execution of a search warrant at his home revealed $50,000 in cash and various items used in large-scale fentanyl trafficking. In connection with Knox’s sentencing, Judge Horan determined that the defendant orchestrated a campaign of intimidation directed at cooperating witnesses called to testify by the government. Specifically, during the testimony of these witnesses, multiple known associates of Knox would enter the courtroom and sit in the public gallery, leaving when the testimony ended. The Court also determined that following his trial, and while he was detained pending sentencing, Knox attempted to have other non-incarcerated individuals retaliate against various trial witnesses.
Prior to imposing sentence, Judge Horan emphasized the seriousness of Knox’s criminal conduct and his significant criminal history, along with his attempts to intimidate and retaliate against trial witnesses, as reasons for the sentence.
“Jamal Knox was a central player in the large-scale fentanyl trafficking associated with the Hustlas Don’t Sleep street gang,” said U.S. Attorney Olshan. “Today’s significant sentence reflects the egregiousness of Knox’s conduct, his refusal to leave the deadly drug trade behind after multiple prior convictions, and his blatant efforts to silence those who would expose the extent of his criminal conduct—including while they testified in a federal courtroom. This office and our dedicated law enforcement partners will leave no stone unturned in our joint work to rid our communities of deadly narcotics and keep our neighbors safe.”
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, Pennsylvania State Police, Pennsylvania Office of Attorney General, Allegheny County Police Department, Monroeville Police Department, and Penn Hills Police Department for the investigation leading to the successful prosecution of Knox.
This prosecution 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.
Federal Jury Convicts Minneapolis Man for Insider Trading SchemeRead the Press Release
ST. PAUL, Minn. – A federal jury has convicted a Minneapolis man in an insider trading conspiracy involving nonpublic negotiations for the acquisition of a medical device company valued at $1.6 billion, announced First Assistant U.S. Attorney Ann M. Bildtsen.
According to evidence presented at trial, beginning in January 2018 through at least August 2020, Doron “Ron” Tavlin, 68, of Minneapolis, and Afshin “Alex” Farahan, 57, of Los Angeles, engaged in an insider trading conspiracy. The conspiracy involved nonpublic information about the acquisition of Mazor Robotics, an Israeli-based company that specialized in robotics for spinal procedures, by Medtronic, Inc., an Ireland-based medical device company that primarily operated from its executive headquarters in Minneapolis. Tavlin, while working as vice president of business development at Mazor Robotics, learned material, nonpublic information about Medtronic’s potential acquisition of his company. In violation of federal law and his duty to his former employer, Mazor Robotics, Tavlin tipped this information about the acquisition to his friend, Farahan, and instructed him to keep the information secret. Farahan knew that Medtronic’s imminent acquisition of Mazor would likely result in an increase in Mazor’s stock price. Farahan used the nonpublic information to quickly buy more than $1 million of Mazor stock throughout August and September 2018. The morning after the acquisition was announced, Farahan immediately sold all the stock he had purchased over the preceding weeks, which resulted in a combined profit of over $500,000 for himself and one other individual. According to evidence presented at trial, after the acquisition occurred, Tavlin learned that the Financial Industry Regulatory Authority (FINRA) was investigating certain trades of Mazor securities that occurred prior to the publicly announced acquisition. As part of its inquiry, FINRA asked Tavlin, and other insiders who knew about the secret acquisition negotiations, whether he knew any of the parties who traded in Mazor securities leading up to the public announcement. In January 2019, Tavlin responded to FINRA’s inquiry by falsely denying that he recognized any names on a list of persons and entities that purchased Mazor securities, which included Farahan.
According to evidence presented at trial, the insider trading conspiracy included an agreement between Tavlin and Farahan that Farahan would pay money to Tavlin in exchange for the material, nonpublic information. For example, in October 2019, Farahan gave Tavlin a $25,000 check in exchange for the information that Tavlin had provided about Mazor Robotics leading up to the acquisition.
On February 16, 2024, following a nine-day trial before U.S. District Judge Donovan W. Frank, Tavlin was found guilty on one count of conspiracy to commit insider trading and ten counts of securities fraud and aiding and abetting securities fraud. Another defendant, David Jay Gantman, 58, of Mendota Heights, was found not guilty on one count of conspiracy to commit insider trading and six counts of securities fraud.
Farahan pleaded guilty on August 4, 2022, to one count of conspiracy to engage in insider trading. Sentencing hearings for both defendants will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Matthew S. Ebert, Robert M. Lewis, and William C. Mattessich tried the case.
Farmington Woman Charged with Violations of the Federal Oil and Gas Royalty Management Act and Wire FraudRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and the Department of the Interior (DOI) Office of Inspector General announced today that a federal grand jury returned an indictment charging Teresa McCown with violations of the Federal Oil and Gas Royalty Management Act and wire fraud. McCown, 55, of Farmington, will remain on condition of release pending trial, which has not been scheduled.
According to the indictment, between Jan. 24, 2017, and June 5, 2023, McCown owned M&M Production & Operation, Inc. (M&M) and Shoreline Oil & Gas Company (Shoreline). Both are in the business of extracting oil and gas from land leased to the companies by the federal government, the Navajo Nation, and by the Jicarilla Apache Nation and both companies sold extracted oil and gas to refiners. M&M and Shoreline are required to report the quantity and quality of oil and gas extracted from the leases and the revenue derived from sales of those materials to the Department of the Interior, Office of Natural Resources Revenue (ONRR), in Report of Sales and Royalty Remittance (Form ONRR-2014) forms and Oil and Gas Operations Reports (OGORs). The intent of these reports is to determine royalties due to the lessors: the Navajo Nation, the Jicarilla Apache Nation, and the federal government.
After reviewing financial statements from refiners, ONRR determined that M&M and Shoreline’s Oil and Gas Operations and Sales and Royalty Remittance reports were incorrect. More specifically, a detailed analysis revealed over 400 incorrect reports on both Indian and Federal leases between January 2017 and July 2021. Furthermore, ONRR issued a Notice of Noncompliance to McCown in March 2021 for failing to report M&M's production of oil or gas from Federal and Indian properties from July 2019 through January 202l. ONRR is also authorized to issue civil penalties associated with the Notice of Noncompliance for failure to correct violations identified – and did issue those penalties. After receiving notices, penalties, and participating in teleconferences with regulators, McCown failed to correct false and inaccurate reporting. The total civil penalties assessed by ONRR for multiple violations by M&M and Shoreline total $1,707,339.58.
For knowingly and willfully submitting false and inaccurate reports, McCown is charged in Counts 2-9 with wire fraud. Specifically, McCown submitted the false and inaccurate reports over the internet via ONRR’s website. The electronically submitted forms were transmitted over interstate wire from Farmington, New Mexico to servers in Raleigh, North Carolina. ONRR employees in Lakewood, Colorado then accessed the same data through an internal networking system for overseeing production reporting and to process royalty payments.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, McCown faces up to 20 years in prison and $300,000 in additional fines. As part of her conditions of release, McCown may not work as a record-keeper or reporter in any industry subject to state or federal reporting or regulatory requirements, including oil and gas companies.
The Department of the Interior, Office of Inspector General, Office of Investigations, Energy Investigations Unit investigated this case. Assistant U.S. Attorney Alexander Flores is prosecuting the case.
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East Bay Resident Sentenced to Prison in Securities Fraud SchemeRead the Press Release
OAKLAND – Dileep Kumar Reddy Kamujula was sentenced today to six months in prison, and ordered to forfeit $130,369.28, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Honorable Jon S. Tigar, U.S. District Judge.
Kamujula, 37, of Fremont, pleaded guilty to the charge on November 3, 2023. According to his plea agreement, Kamujula admitted that between April 9 and April 30, 2020, he used confidential Twilio customer usage data when purchasing approximately 167 Twilio call options that he sold on May 7 and May 8, 2020. Kamujula obtained the confidential information from a relative who worked at Twilio and made a profit of more than $550,000 on the transactions.
A federal grand jury indicted Kamujula on March 24, 2022, charging him with securities fraud, in violation of 18 U.S.C. §§ 1348 and 2 (Count One), and 15 U.S.C. §§78j(b) and 78ff, 17 C.F.R. §§ 240.10b-5, 240.10b5-1 (Count Two). Kamujula pleaded guilty to Count Two and Judge Tigar dismissed Count One on the government’s motion at the sentencing hearing.
In addition to the prison term, Judge Tigar also sentenced the defendant to serve a three-year period of supervised release, to begin after the prison term, and ordered the defendant to forfeit $130,369.28. Judge Tigar ordered the defendant to surrender to begin serving his prison term on April 15, 2024.
Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Aarian Beiti. The prosecution is the result of an investigation by the Federal Bureau of Investigation. The U.S. Attorney’s Office appreciates the assistance of the San Francisco Regional Office of the Securities and Exchange Commission and Financial Industry Regulatory Authority (FINRA).
Denham Springs Man Sentenced to 108 Months in Federal Prison for Access Device Fraud and Inducing a False Statement in the Application of a FirearmRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that the Honorable John deGravelles sentenced Jaylon Jamare Smullen, age 23, of Denham Springs, Louisiana, to 108 months in federal prison following his convictions for access device fraud and inducing a false statement in the application of a firearm. The Court further sentenced Smullen to serve three years of supervised release following his term of imprisonment and ordered that he pay a total of $27,836.11 in restitution to 49 victims.
According to admissions made as part of his guilty plea, Smullen devised a scheme to fraudulently obtain firearms, AR-15 lower receivers, and parts used to build firearms from federally licensed firearms dealers (“FFLs”) located in the Middle District of Louisiana and outside of the State of Louisiana. To execute the scheme, Smullen recruited, induced, procured, aided and abetted straw purchasers, to complete the firearm transfer paperwork, such as ATF Form 4473, in person, in order to obtain the firearms and AR-15 receivers representing that they were the actual purchasers/transferees of the firearms or lower receivers. To fund his scheme he obtained and used stolen credit card information belonging to 49 individuals, including the 16-digit credit card numbers, cardholder names, and billing addresses, to order firearms, firearm parts, and accessories, from multiple FFLs located outside of the State of Louisiana, for shipment to FFLs and residential addresses in the Middle District of Louisiana.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Baton Rouge City Police Department, and was prosecuted by Assistant United States Attorneys Kristin Lundin Craig and Lyman E. Thornton III.
Convicted sex offender imprisoned on additional child pornography offensesRead the Press Release
GALVESTON, Texas – A 37-year-old San Leon resident has been sentenced for possession and receipt of child pornography as well as distribution of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Robert James Alden pleaded guilty April 11, 2023.
U.S. District Judge Jeffrey V. Brown has now ordered Alden to serve a total of 240 months in federal prison. At the hearing, the court noted the sentence reflected the severity of the materials Alden was using and his propensity to predation. Alden was further ordered to pay a total of $22,000 in restitution to the known victims and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. At the time of the offense, Alden was a registered sex offender and will continue to be upon release from custody.
“Today’s sentence makes it clear that online child predators will be prosecuted to the fullest extent of the law,” said Hamdani. “A convicted sex offender who continues seeking children online for sex will face swift and strong punishment.”
At the time of the plea, Alden admitted to communicating with whom he believed to be a 13-year-old female. During the message exchange, Alden requested nude photos from the minor, sent a video of child pornography to her and suggested they produce their own pornographic videos.
On March 9, 2021, authorities executed a federal search warrant and recovered multiple media devices, including his phone which contained multiple images and videos of child pornography.
Alden will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations-Galveston conducted the investigation with assistance from the Pearland Police Department and Houston Metro Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Richard W. Bennett prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Convicted Ponzi Schemer and Alleged Conspirator Indicted for Multimillion-Dollar Fraud Scheme and Obstruction of JusticeRead the Press Release
NEWARK, N.J. – A New Jersey man whose 24-year federal prison sentence was commuted after being twice convicted of defrauding investors of a total of $230 million was indicted today with one other conspirator in another fraud scheme, U.S. Attorney Philip R. Sellinger announced.
The indictment charges Eliyahu “Eli” Weinstein, aka Mike Konig, 48, and Aryeh “Ari” Bromberg, 49, with conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, four counts of wire fraud, and conspiracy to obstruct justice. Three of Weinstein and Bromberg’s alleged conspirators, Christopher Anderson, 47, Richard Curry, 36, and Alaa Mohamed Hattab, 35, previously pleaded guilty to conspiracy to commit securities fraud and are awaiting sentencing. Charges via criminal complaint are still pending against two of Weinstein and Bromberg’s alleged conspirators, Joel Wittels and Shlomo Erez.
U.S. Attorney Philip R. Sellinger“A federal grand jury in New Jersey has charged Weinstein and Bromberg with defrauding victim investors out of tens of millions of dollars. As alleged, soon after Weinstein got out of jail after receiving a Presidential commutation, he picked his Ponzi schemer’s playbook back up and allegedly started ripping off victims again. Weinstein allegedly used a fake name and worked with Bromberg and others to falsely promise access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine. Weinstein didn’t try to make his prior victims whole – he made more victims, as alleged in the indictment. This office will aggressively investigate and prosecute fraudsters who allegedly prey on innocent investors.”
“The adage ‘history repeats itself’ proves true in the case we’ve built against Weinstein and his co-conspirators,” FBI – Newark Special Agent in Charge James E. Dennehy said. “We allege he persuaded investors to put money into several ventures, based on taking advantage of the COVID pandemic, the baby formula shortage, and even the war in Ukraine. Our investigation shows those ventures weren’t real, and to use the exact words the subjects used - it was a Ponzi scheme. Weinstein squandered his pardon from the highest office in this country for similar criminal behavior. He now faces justice, a second time.”
According to documents filed in this case and statements made in court:
Weinstein was convicted two times in New Jersey federal court for defrauding investors. His first case involved a real estate Ponzi scheme, and his second case stemmed from additional fraud Weinstein committed while on pretrial release. For these crimes, which resulted in combined losses to investors of approximately $230 million, Weinstein was sentenced to serve 24 years in prison, followed by three years of supervised release. On Jan. 19, 2021, after Weinstein had served less than eight years, the President of the United States at that time commuted Weinstein’s term to time served, leaving intact the rest of his sentence.
Soon after being released from prison, Weinstein began orchestrating a new scheme to solicit money from investors through a company called Optimus Investments Inc. (Optimus). Using the fake name “Mike Konig,” Weinstein ran Optimus with Bromberg and Wittels. They kept Weinstein’s true name and identity hidden because, as Weinstein acknowledged in a secretly recorded conversation, investors wouldn’t give them “a penny” if they learned of Weinstein’s involvement.
Weinstein, Bromberg, and Wittels received the bulk of investor money through a second company, Tryon Management Group LLC, which was owned and controlled by Anderson and Curry. Tryon promised these individual investors – consisting mostly of friends and family – lucrative opportunities to invest in deals involving COVID-19 masks, scarce baby formula, and first-aid kits supposedly bound for wartime Ukraine. Posing as Mike Konig, Weinstein provided the information for these supposed deals. Based on that information, investors gave money to Tryon, believing the deals were legitimate and not knowing about Weinstein’s involvement. In turn, Tryon transferred those funds to Weinstein, through Optimus.
In February 2022, almost immediately after Tryon and Optimus started receiving investor money, Tryon was unable to pay its investors. Rather than reveal this information to investors, the conspirators agreed to pool money from existing investors of both Optimus and Tryon and use it to make monthly payments to other investors in a Ponzi-like fashion. The conspirators concealed this arrangement from investors by falsely telling investors that the payments derived from legitimate investment returns, not other investors’ money.
In late August 2022, Weinstein revealed his true identity to Anderson and Curry, admitting in a secretly recorded meeting, “I am Eli Weinstein.” In another recorded August 2022 meeting, Weinstein admitted to misappropriating Tryon investor money and making various false statements and sending fake documents concerning the purported Optimus deals. Weinstein acknowledged that he was conducting a Ponzi scheme, stating, “I finagled, and Ponzied, and lied to people to cover us.”
Once Anderson and Curry learned that Mike Konig was actually Weinstein, they agreed with Weinstein, Bromberg, and other conspirators to continue concealing Weinstein’s identity from investors and to raise additional money to pay off existing Tryon investors, all in an effort to stop the Ponzi scheme from falling apart and to cover up the fraud.
In addition to defrauding investors, Weinstein and Bromberg also conspired to obstruct justice. They helped hide Weinstein’s assets that should have been used to pay over $200 million in restitution that he still owes his previous victims. They also concealed Weinstein’s myriad business activities, which he was required to disclose to the court and which were expressly prohibited by the terms of his supervised release. In multiple secretly recorded conversations, Weinstein discussed his intent to conceal his various assets from the government. In one such conversation, Weinstein referenced hidden assets that he “can’t touch” while on supervised release because he’d otherwise “go to jail.” Weinstein then boasted, “I just told you something that no one in the world knows because I hid money. Get it?”
The conspiracy and substantive securities fraud charges are each punishable by a maximum of 5 years in prison and a $5 million fine. The conspiracy and substantive charges of wire fraud are punishable by a maximum of 20 years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. The obstruction conspiracy charge is punishable by a maximum of five years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the charges in this case. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Antonia Apps, Director of the SEC’s New York Regional Office.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer, Carolyn Silane, and Marko Pesce of the Economic Crimes Unit in Newark.
The charges and allegations against Weinstein, Bromberg, Wittels, and Erez are merely allegations, and they are presumed innocent unless and until proven guilty.
weinsteinbromberg.indictment.pdfConvicted Felon Pleads Guilty to Trafficking Firearms from Alabama into MassachusettsRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to illegally transporting dozens of firearms from Alabama into Massachusetts.
Jahquel Pringle, 26, pleaded guilty to one count of conspiracy to illegally transport firearms; two counts of illegal transportation or receipt in state of residency of firearm purchased or acquired outside of state of residency; and two counts of being a felon in possession of a firearm. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for June 6, 2024. Pringle was indicted by a federal grand jury in July 2022 along with co-defendants Brandon Moore, Jarmori Brown and Kobe Smith.
According to the charging documents, Pringle, Brown, Moore and, allegedly, Smith conspired to obtain at least 24 firearms from Alabama, where Moore lived, and then transport them to Boston. In two separate trips in July and August 2020, Pringle traveled from Boston to Alabama on a commercial bus to pick up the firearms from Moore and then transported the firearms, concealed within luggage, back to Boston by bus. At least seven of the firearms have been recovered from the streets of Boston and surrounding communities. Pringle was captured on video firing one of the firearms in Alabama. Pringle is prohibited from possessing firearms due to a prior felony conviction.
In July 2023, Brown was sentenced to 18 months in prison and three years of supervised release after previously pleading guilty to his role in the conspiracy. Moore’s case was transferred to the Middle District of Alabama where he has since pleaded guilty. Smith remains in federal custody pending trial.
Both the interstate transportation charge and the conspiracy charge provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm provides for a sentence of up to ten years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. This case is being prosecuted by the Major Crimes Unit.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Convicted Corpus felon heads to prison for illegal possession of ammunition and handgunRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi resident has been sentenced following his conviction for felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Adalberto Pena pleaded guilty June 13, 2023.
U.S. District Judge David S. Morales has now ordered Pena to serve 87 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional information regarding Pena’s history of possessing firearms as a convicted felon, which includes four incidents in the 14 months preceding his arrest. The four prior incidents involved 10 firearms and included a silencer.
The investigation revealed Pena was possibly involved in selling narcotics and possessing a firearm as a convicted felon. On Dec. 22, 2022, law enforcement conducted surveillance at his residence in Corpus Christi.
At that time, authorities saw a vehicle leave the house without license plate lights and initiated a traffic stop. Pena informed law enforcement he did not have identification. Authorities then conducted a search of his vehicle which revealed 9mm and .223 ammunition inside the cup holder as well as a Taurus handgun with a loaded magazine in the glove box.
Pena was previously convicted of a felony for possession of cocaine in 2011. As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law.
Pena will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Liesel Roscher prosecuted the case.
This case was prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Columbus man pleads guilty to fraud crimes related to stealing identities for lines of creditRead the Press Release
COLUMBUS, Ohio – A Columbus man pleaded guilty in federal court here today to fraud crimes related to stealing identities to get more than $100,000 in fraudulent lines of credit.
Siyuan Ye, 24, of Columbus, pleaded guilty to mail fraud and aggravated identity theft.
According to his plea agreement, between January 2022 and August 2023, Ye stole the identities of at least 15 victims. Ye repeatedly obtained Ohio and Florida driver licenses of other individuals without their authorization and then used the licenses to fraudulently obtain credit from retailers in the victims’ names.
He used the fraudulent credit to purchase a Chevrolet Corvette Stingray, three motorcycles and a variety of electronics.
For example, in April 2023, Ye used a stolen identity and fraudulent line of credit to purchase $8,400 worth of goods from a Micro Center in Columbus. Ye bought graphics cards, laptops and an Apple watch.
That same month, Ye used the same Ohio victim’s identity to buy a Suzuki motorcycle at Iron Pony Motorsports in Westerville.
As part of his plea, Ye has agreed to pay more than $115,000 in restitution. Parties involved in his case have recommended a sentence of 24 to 36 months in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Shawn Gibson, Acting Special Agent in Charge, Homeland Security Investigations (HSI) Detroit, announced the guilty plea entered today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
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Co-Owner of Media Brokerage Firm Sentenced for Filing False Tax ReturnsRead the Press Release
A former Maryland woman was sentenced today to 15 months in prison for filing a false tax return.
According to court documents and statements made in court, Susan K. Patrick, now a resident of Cody, Wyoming, co-owned a media brokerage firm with her husband and hired an accounting firm to prepare business and personal tax returns for 2012 through 2014. Despite receiving the completed and accurate tax returns from the accounting firm, Patrick did not file them with the IRS. After the IRS contacted Patrick and requested that she file the unfiled returns, Patrick lied to the IRS, claiming that her accounting firm had timely filed the returns and that she would provide copies of those returns.
Patrick, however, did not provide copies of the accurate returns that had been prepared by her accounting firm. Instead, Patrick doctored the business returns, removing $10 million in gross receipts received by her brokerage firm, and altered the personal returns by removing over $9.5 million in related income that she and her husband had earned from 2012 through 2014. Patrick also falsely backdated her signature on each tax return to make it appear as if the returns had been timely signed and mailed these false documents to the IRS, hoping to evade paying the full amount of taxes she owed.
In addition, Patrick did not timely file business and individual returns for 2015, which she had also hired the accounting firm to prepare, nor did she pay the tax due and owing for the individual return.
In total, Patrick sought to evade more than $2.5 million in taxes.
In addition to the term of imprisonment, U.S. District Judge George L. Russell III for the District of Maryland ordered Patrick to serve one year of supervised release and to pay approximately $3,843,922 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS Criminal Investigation investigated the case.
Assistant Chief Thomas F. Koelbl and Trial Attorney Matthew L. Cofer of the Tax Division prosecuted the case.
Citrus Heights Man Indicted for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — On Feb. 15, 2024, a federal grand jury returned an indictment against Kyle Travis Colton, 36, of Citrus Heights, charging him with receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between July 2022 and December 2023, Colton received visual depictions of children engaged in sexually explicit conduct. The indictment was unsealed today.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Whitnee Goins is prosecuting the case.
If convicted, Colton faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Cincinnati woman pleads guilty to making false racial discrimination claims against landlord to federal agentsRead the Press Release
CINCINNATI – A Cincinnati tenant pleaded guilty in federal court today to making false statements accusing her landlord of violating the Fair Housing Act.
Dermisha Pickett, 33, fabricated messages from her landlord stating the landlord did not want Black tenants.
According to court documents, in February 2023, the U.S. Attorney’s Office was forwarded several text messages purportedly sent by the Cincinnati-area landlord as part of a civil rights report. The U.S. Attorney’s Office referred the matter to the U.S. Department of Housing and Urban Development’s Office of Inspector General (HUD OIG) to investigate the claims.
The investigation revealed that the landlord owns more than 100 properties, including 56 properties rented through HUD’s housing choice voucher program. Many of his tenants appear to be Black/African American.
In March 2023, Pickett met with HUD agents and provided the agents with numerous discriminatory messages purportedly made by Pickett’s landlord. Pickett also claimed to receive a call from the landlord as she arrived at the meeting and placed the call on speaker phone.
Pickett told agents that she had attempted to pay her portion of the rent but that her landlord returned it, stating he did not want to rent to Black individuals.
In a later interview with the landlord, the landlord told agents he did not want to continue to rent to Pickett because she was causing extensive damage to the property.
Phone records and forensic analysis indicate that no text messages were exchanged during the time periods Pickett claimed. It is alleged that Pickett used mobile applications to fabricate the text messages.
“False reports to law enforcement undermine legitimate reports of racial discrimination and could discourage victims from coming forward for fear that they will not be believed,” said U.S. Attorney Kenneth L. Parker. “This office will continue to do its due diligence when presented with any potential civil rights violations.”
“Making false reports of racial discrimination is unacceptable and can have tangible effects on other tenants who rely on HUD-assisted housing,” said Special Agent in Charge Shawn Rice with the HUD Office of Inspector General. “In this case, if the landlord had violated the Fair Housing Act, his participation in HUD’s Housing Choice Voucher program may have been revoked, causing the displacement of approximately 50 families who rely on the Housing Choice Voucher program. These families would have been forced to uproot their families to find new homes, incurring non-reimbursable expenses.”
Pickett was charged by criminal complaint in August 2023.
Making a false statement to federal officers is punishable by up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Shawn Rice, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General, Mid-Atlantic Region announced the guilty plea entered into today before Senior U.S. District Judge Michael R. Barrett. Assistant United States Attorney Ebunoluwa A. Taiwo is representing the United States in this case.
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Canadian woman arrested, charged with assaulting a CBP officerRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Romane Toumani, 29, of Ontario, Canada, was arrested and charged by criminal complaint with assaulting a federal officer, which carries a maximum penalty of eight years in prison.
Assistant U.S. Attorney Andrew J. Henning, who is handling the case, stated that on February 8, 2024, at approximately 12:00 p.m., Homeland Security Investigations received a report of a Customs and Border Protection Officer being assaulted by Toumani at the Peace Bridge Port of Entry. According to the complaint, Toumani and her sister were traveling in an UBER vehicle, when the UBER driver was referred for immigration inspection at the Peace Bridge and then told that he would have to return to Canada for insufficient travel documents. The Toumani’s were told to retrieve their baggage from the vehicle and advised that CBP would be examining their luggage, which the sisters stated that CBP had no authority to do. As CBP officers attempted to return the Toumani’s to the immigration inspection area, Romane Toumani forcefully bit the arm of an officer and resisted efforts multiple attempts to place her in handcuffs.
Toumani made an appearance before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Brian Walshe Sentenced for Scheme to Sell Counterfeit Warhol PaintingsRead the Press Release
BOSTON – A Lynn man was sentenced today in connection with a years-long, multi-faceted art fraud scheme involving two purported Andy Warhol paintings.
Brian R. Walshe, 49, was sentenced by U.S. Senior District Court Judge William G. Young to 37 months in prison and three years of supervised release. Walshe was also ordered to pay restitution of $475,000. In April 2021, Walshe pleaded guilty to one count each of wire fraud, interstate transportation for a scheme to defraud and unlawful monetary transaction.
In early November 2016, a buyer found two Andy Warhol paintings for sale on eBay. The paintings were two of Warhol’s “Shadows,” a series of untitled, abstract canvas paintings from 1978. The original listing price for the paintings was $100,000.
In the advertisement, Walshe – the eBay seller - included a picture of an invoice for the two Warhol Shadow paintings with Warhol Foundation numbers and a purchase price of $240,000.
The buyer believed the paintings were authentic and between Nov. 3 and 5, 2016, arranged with Walshe to purchase the artwork outside of eBay for $80,000. Walshe and the buyer signed a contract which specified that the buyer had three days to terminate the contract and get a full refund if the buyer did not accept the artwork.
On Nov. 7, 2016, the buyer’s assistant flew to Boston to retrieve the paintings, providing Walshe with a cashier’s check for $80,000. The cashier’s check was deposited that day into an account that Walshe controlled and $33,400 was subsequently withdrawn in the following 14 days.
On Nov. 8, 2016, the buyer removed the paintings’ frames and found no Warhol Foundation authentication stamps and noticed that the canvasses and staples looked new. When he compared the paintings to the photographs from the eBay listing, they did not look identical. The buyer concluded that the paintings he purchased from Walshe were not authentic. The buyer then repeatedly attempted to contact Walshe, who initially did not respond, and then made excuses for the delay in refunding the buyer’s money.
Walshe initially gained access to the paintings through a victim who was his friend. While visiting the victim in South Korea, Walshe told the victim that he could sell some of the art for a good price. The victim agreed and let Walshe take the two Shadow paintings and other fine art pieces. A subsequent investigation revealed that Walshe sold the original Shadow paintings to a gallery in 2011. Those paintings passed through multiple hands until they were sold to buyers outside the country. To date, the government has not regained possession of the original Shadow paintings.
Additionally, the investigation also revealed that, sometime in 2011, Walshe obtained a different set of replica Shadow paintings from an artist who did not know Walshe’s purpose. In 2015, Walshe sold that set to another victim who resided in France.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Lynn Police Department provided assistance with the investigation. Assistant U.S. Attorneys Timothy E. Moran, Kunal Pasricha and Philip A. Mallard of the Criminal Division and Carol E. Head, Chief of the Asset Recovery Unit prosecuted the case.
Brazilian National Sentenced, Faces Deportation in Scheme That Defrauded a National Retailer of Nearly $300,000Read the Press Release
PROVIDENCE, RI – A former West Hartford, CT, resident who, for more than eight months prior to his arrest and detention nearly two years ago, operated a scheme in several states, from Maine to Rhode Island to Maryland, to steal and return merchandise to Home Depot, amassing and spending nearly $300,000 in store credit, has been sentenced to time served, ordered to pay full restitution, and faces deportation proceedings, announced United States Attorney Zachary A. Cunha.
Alexandre Henrique Costa-Mota, 27, a Brazilian national, pleaded guilty in U.S. District Court in Rhode Island on November 9, 2023, to charges of wire fraud and conspiracy. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr. to time served, three years of federal supervised release, and to pay restitution to Home Depot in the amount of $297,332.
Mr. Costa-Mota will be turned over to Immigration and Custom Enforcement to face deportation proceedings.
According to court documents and information presented to the court, on at least 60 occasions spread over approximately eight months from mid-2021 to early 2022, Costa-Mota stole merchandise from the retailer then returned the merchandise for store credit. He amassed – and spent - $297,332 in store credit. He executed the scheme at no less than 40 different store locations. To evade detection, he used fake driver licenses for identification purposes.
The case was prosecuted in U.S. District Court in Rhode Island by Assistant U.S. Attorneys Dulce Donovan and Milind M. Shah.
The matter was investigated by the United States Secret Service.
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Bloods Gang member pleads guilty to drug and gun chargesRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Rasheem “Coop” Sullivan, 31, of Rochester, NY, pleaded guilty to conspiracy to distribute controlled substances and being a felon in possession of a firearm, before U.S. District Judge Frank P. Geraci, Jr. The charges carry a minimum penalty of five years in prison, a maximum of life in prison and a $250,000 fine.
Assistant U.S. Attorney Douglas E. Gregory, who is handling the case, stated that Sullivan is a member of the nationally recognized Bloods Gang, and the self-proclaimed leader of a local subset known as the Immortal Stone Gorilla Gang. In December 2022, following a lengthy investigation into narcotics trafficking, weapons possession, and associated violence, Sullivan and several of his fellow Blood Gang members were arrested. On December 14, 2022, several locations associated with Sullivan’s enterprise were searched, during which investigators recovered narcotics, cash, and numerous firearms. Inside Sullivan’s residence, a Glock 10 mm pistol loaded with 16 rounds of ammunition was recovered.
The investigation began in the aftermath of the murder of Rochester Police Department Investigator Anthony Mazurkewicz and the assault of Investigator Sino Seng in July 2022. It's alleged that individuals associated with Sullivan were engaged in a violent feud with another group led by Brandon “B-Mack” Washington. In September 2022, Washington and several associates were charged with federal drug and weapons offenses.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the Bureau of Alcohol, Tobacco, and Firearms, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
Sentencing is scheduled for May 21, 2024, before Judge Geraci.
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Alamogordo Man Charged with Possessing Unregistered Weapon Used in Police Officer KillingRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Jeffrey C. Boshek II, Special Agent in Charge of the Dallas Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, announced that Dominic Cruz De La O appeared in federal court on a criminal complaint charging him with possession of an unregistered weapon made from a shotgun. De La O, 27, of Alamogordo, will remain in temporary custody pending a detention hearing, which is scheduled for Feb. 22, 2024.
According to the criminal complaint, on July 15, 2023, De La O allegedly shot and killed Alamogordo Police Officer Anthony Ferguson during a traffic stop with a modified 12-gauge shotgun. The barrel length of the shotgun was 16 inches, and the overall length was 25.5 inches. The shotgun stock had been removed and replaced with a pistol grip.
On July 26, 2023, ATF agents received information that Jonah Apodaca allegedly provided the modified shotgun to De La O. Apodaca, 32, of Alamogordo, appeared in federal court on a criminal complaint charging him with possession of a firearm by a felon on Feb. 12, 2024. Apodaca will remain in custody pending trial, which has not been scheduled.
A criminal complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted of the current charges, De La O faces up to 10 years in prison and Apodaca faces 15 years in prison. De La O also faces state charges including first-degree murder, aggravated fleeing, aggravated assault, tampering with evidence, and other lesser charges stemming from the July 15, 2023, death of Officer Ferguson.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Alamogordo Police Department, New Mexico State Police, and the Otero County Sheriff’s Office. Assistant U.S. Attorneys Maria Y. Armijo and Ry Ellison are prosecuting the case.
View Del La O's Criminal Complaint View Apodaca's Criminal Complaint# # #
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Ada Resident Sentenced for Murder, Kidnapping, Arson, Burglary, Voluntary Manslaughter, Assault and Prison Contraband ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Kalup Allen Born, age 25, of Ada, Oklahoma, was sentenced to a total of 608 months imprisonment related to three separate cases.
For crimes related to a murder committed in January 2017, Born was sentenced to 450 months imprisonment for Murder in Indian Country – Second Degree, Kidnapping in Indian Country, Arson in Indian Country, and First Degree Burglary in Indian Country. The sentences will run concurrently to each other, and consecutive to his other sentences.
For crimes related to a prison attack in December 2020, Born was sentenced to 121 months imprisonment for one count of Voluntary Manslaughter in Indian Country. The sentence will run consecutive to his other sentences.
For crimes related to a prison attack in April 2023, Born was sentenced to 37 months of imprisonment for one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, and one count of Possession of Contraband in Prison. The sentence will run consecutive to his other sentences.
The charges arose from investigations by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the Oklahoma Highway Patrol, the Oklahoma State Fire Marshal, the Pontotoc County Sheriff’s Office, and the Muskogee County Sheriff’s Office.
On December 5, 2022, Born pleaded guilty to one count of Murder in Indian Country—Second Degree, one count of Kidnapping in Indian Country, one count of First Degree Burglary in Indian Country, and one count of Arson in Indian Country for his January 2017 crimes.
According to investigators, on January 15, 2017, Born broke into an Ada residence, threatened and assaulted the occupant with a knife, stole the victim’s vehicle, then kidnapped and forced the victim into the car. As he drove south, Born backed the vehicle over the side of a bridge, sending it over the edge and down into the creek bed below. The victim suffered severe blunt force trauma, including a ruptured organ and a pelvic injury, and ultimately died from the injuries sustained in the incident.
Born then made his way to a second home nearby, which he burglarized, stealing a blanket, a knife, a wallet, and electronics.
From there, Born proceeded to yet a third residence, where he broke in and set the home ablaze with the occupants still inside. A bystander was able to rescue the occupants from the fire and Born was captured nearby.
In December 2020, while being held on charges for these crimes, Born killed a fellow inmate in the Pontotoc County Justice Center in a brutal and sustained attack. On June 7, 2022, a federal jury convicted Born at trial for one count of voluntary manslaughter.
On April 24, 2023, Born stabbed a Muskogee County Jail inmate repeatedly with a homemade knife and attempted to throw the inmate over a railing. On January 3, 2024, Born entered a guilty plea to one count of assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, and one count of Possessing Contraband in Prison.
The crimes occurred in Pontotoc County and Muskogee County, within the boundaries of the Chickasaw Nation Reservation and the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
“The crimes committed by Born are gut-wrenching and there is no question the sentencing is just,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “The FBI is responsible for investigating the most serious crimes in Indian Country and along with our law enforcement partners, we will continue to aggressively pursue these cases. The FBI is committed to protecting all of the tribal communities we serve, helping victims, and ensuring that justice is met for violent offenders. Born decided to continue his life of crime even while in prison. He clearly did not learn his lesson and continued to terrorize the lives of others. The FBI is grateful to the law enforcement agencies that contributed to this investigation and led to Born’s conviction.”
“The enormity of these heinous acts cannot be overstated,” said United States Attorney Christopher J. Wilson. “Born has proven to be a threat to society both inside and outside the walls of the prison system. This sentence ensures he will spend a substantial portion of his life, if not all, behind those walls where his actions are as limited as possible.”
The Honorable John F. Heil, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the sentencing hearings. Born will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration.
Assistant United States Attorneys Ryan Conway and T. Cameron McEwen represented the United States.
19 February 2024
U.S. to collect over $350,000 in damages after judgement ordered in False Claims Act caseRead the Press Release
ANCHORAGE, Alaska – The U.S. will collect over $350,000 in treble damages and penalties after a default judgement was ordered in the False Claims Act case of the former co-owner of Arm Rippin Toys, who made false statements on an Economic Injury Disaster Loan (EIDL) application.
Michael Hanzuk II, 31, of Anchorage, co-owned Arm Rippin Toys Inc. According to court documents, Hanzuk admitted in a related criminal case that beginning in July 2019 he and the two other co-owners and employees ran a “tuning and deleting” scheme of their customers’ diesel vehicles. This scheme involved removing control systems designed to reduce pollutants being emitted from vehicles, which is illegal under the Clean Air Act. Hanzuk was charged and convicted of conspiracy to violate the Clean Air Act in August 2022.
In response to the COVID-19 crisis, Congress authorized emergency funding for federal agencies to provide financial assistance to the public in the form of loans. In 2020, Hanzuk applied for an EIDL loan of over $100,000 and falsely certified that he and Arm Rippin Toys were not engaged in “any illegal activity,” despite their active conspiracy to violate the Clean Air Act.
The False Claims Act (FCA) creates a civil cause of action for the recovery of damages and penalties from those who submit false or fraudulent claims to the United States. The U.S. affirmatively sought and was granted treble damages, as well as penalties against Hanzuk in the civil matter for his false claims, which were three times the amount of the EIDL funds he received.
“My office will continue to prosecute Covid-19 related fraud and bring justice to those who abuse these programs,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The False Claims Act allows treble damages and penalties, which acts as a valuable tool to deter and to hold accountable those who seek to misuse public funds and scam American taxpayers.”
“Those who violate the False Claim Act by wrongfully receiving SBA pandemic program funds will be held accountable,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “This settlement demonstrates that wrongfully obtaining taxpayer dollars will not go unnoticed, and violators will be identified. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
The Small Business Administration Office of Inspector General investigated the case.
Assistant U.S. Attorney Jackie Traini litigated the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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 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 www.justice.gov/coronavirus.
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U.S. Attorney’s Office announces priority to prosecute white-collar, financial crimes in AlaskaRead the Press Release
ANCHORAGE, Alaska – U.S. Attorney S. Lane Tucker for the District of Alaska announced her office’s priority to prosecute white-collar and financial crimes committed in Alaska. One prong of this effort is the formal establishment of an interagency Covid-19 Fraud Task Force.
“White-collar and other financial crimes devastate families, communities and organizations. This task force brings together key law enforcement personnel to continue our ongoing efforts to combat all types of white-collar crime, including Covid-19 related fraud,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “My office will remain steadfast in our work with law enforcement to find, investigate and prosecute any individual who chooses to commit these crimes.”
The following agencies are part of the task force:
- U.S. Small Business Administration, Office of Inspector General Western Region Office (SBA OIG)
- IRS, Criminal Investigation Seattle Division Office (IRS CI)
- FBI Anchorage Field Office
- U.S. Department of Treasury, Inspector General for Tax Administration (TIGTA)
“The task force model is a proven approach to efficiently bringing resources to bear to combat fraud,” stated SBA OIG’s Western Region Special Agent in Charge Weston King. “Our office values our law enforcement partners' shared commitment to holding wrongdoers accountable. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“White-collar crimes are not violent, but they are not victimless,” said Assistant Special Agent in Charge Brandon Waddle of the FBI Anchorage Field Office. “By collaborating with our partners and utilizing intelligence-driven strategies, the FBI has been working diligently to tackle white-collar crimes and to hold fraudsters accountable.”
“Financial crime is not victimless and hurts many people,” said Special Agent in Charge Adam Jobes, IRS CI, Seattle Field Office. “Our team here in Alaska is incredibly invested in our local communities, and we are dedicated to protecting them from harm. We all depend on our financial systems every day, and we are proud to join with U.S. Attorney Tucker and our partners in law enforcement in these essential efforts to keep our communities vibrant and safe.”
The Task Force identifies, investigates and prosecutes those whose defraud economic aid programs intended to help individuals and small businesses negatively impacted by the COVID‑19 pandemic. That includes programs such as the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), Restaurant Revitalization Funds (RRF), Shuttered Venue Operator Grants (SVOG), State and Local Fiscal Recovery Funds (SLFRF), Coronavirus Farm Assistance Program (CFAP), Emergency Rental Assistance Program (ERAP) and Unemployment Insurance (UI). To fraudulently obtain these funds, criminals have created fake businesses, committed identity theft, falsely reported their criminal history and inflated the size and scope of actual businesses, most often subsequently misusing federal funding for personal gain.
Notable Cases
In conjunction with today’s announcement, U.S. Attorney Tucker also announced charges and recognized milestones in a number of financial crimes cases, including charges in cases investigated by the Task Force.
Since September 2023, three cases alleging fraud charges related to Covid-19 programs have been indicted following investigations by the Task Force. The cases are as follows (by date of indictment):
- Rosaline Natazha Mavaega, 41, and Esau Malele Fualema Jr., 44, of Anchorage, were indicted in September 2023 on major fraud, wire fraud, money laundering and identify theft charges related to an alleged scheme to steal millions of dollars through Covid-19 recovery funds. The indictment alleges they stole over $1.6 million.
- Lloyd Pennebaker, 58, of Anchorage, was indicted in October 2023 on wire fraud charges related to false statements regarding his criminal history he allegedly made on EIDL loan applications from April 2020 to May 2021. The indictment alleges he received $122,500 in federal funding from the EIDL loans.
- Cheryl Labrie, 36, of Anchorage, was indicted in January 2024 on wire fraud, bank fraud and money laundering charges related to an alleged scheme to obtain and launder nearly $1 million she received through multiple EIDL and PPP loans and advances over a year.
Other notable financial fraud cases:- Garett Elder, 30, of Anchorage, was sentenced to 10 years in prison on Nov. 13, 2023, after he defrauded more than $26 million from over 170 victims in a large-scale investment fraud scheme.
- The U.S. will collect over $350,000 in treble damages and penalties after a default judgement was ordered in the False Claims Act case against Michael Hanzuk II, 31, of Anchorage. Hanzuk was a former co-owner of Arm Rippin Toys Inc. and was convicted of conspiracy to violate the Clean Air Act in August 2022. In 2020, Hanzuk applied for an EIDL loan of over $100,000 and falsely certified that he and Arm Rippin Toys were not engaged in “any illegal activity,” despite their active conspiracy to violate the Clean Air Act.
- Saray Consuelo Sarmiento Angarita Lockwood, 58, of Kenai, was sentenced to one year in prison on Dec. 18, 2023, after she and her late husband made a materially false statement in a bankruptcy case.
- Melissa Dobbs, 50, of the Matanuska Valley, was indicted in January 2024 on charges of healthcare fraud and allegedly making false statements on a loan application.
- Jayel Jean Lane, 34, of Anchorage, was sentenced to nine months in prison on Feb. 7, 2024, after she stole and misused Social Security benefits for roughly seven years. Lane stole over $76,000 in benefits that she applied for on behalf of a minor and spent the money for her own personal use.
Citizens and others who suspect fraud or other criminal wrongdoing related to the pandemic can report crimes by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Tips for all white-collar and financial crimes can also be submitted to the FBI at ic3.gov or tips.fbi.gov, the SBA OIG at sbax.sba.gov/oigcss/ or the IRS CI at www.irs.gov/compliance/criminal-investigation/reporting-fraud-and-abuse-within-the-irs-e-file-program.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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 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 www.justice.gov/coronavirus.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Three of Four Co-Conspirators Sentenced in Fentanyl, Meth, and Firearms ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced three defendants convicted of Conspiracy to Distribute a Controlled Substance and Possession of Firearm by a Prohibited Person.
Antoine Ray Thomas, 39, of San Francisco, California, was sentenced on February 12, 2024, to 20 years in federal prison, followed by five of supervised release. He was also ordered to pay a $200 special assessment to the Federal Crime Victims Fund. Antoine was convicted of Conspiracy to Distribute over 500 grams of Methamphetamine and Possession of a Firearm by a Prohibited Person.
Tyrin Thomas, Jr., 28, of Sioux Falls, South Dakota, was sentenced on February 5, 2024, to 27 years in federal prison, followed by five years of supervised release. He was also ordered to pay a $100 assessment to the Federal Crime Victims Fund. Tyrin was convicted of Conspiracy to Distribute over 500 grams of Methamphetamine.
Lyric Christina Simon Tschetter, 26, also of Sioux Falls, was sentenced on February 9, 2024, to 12 years and two months in federal prison, followed by five years of supervised release. She was also ordered to pay a $100 assessment to the Federal Crime Victims Fund. Lyric was convicted of Conspiracy to Distribute over 400 grams of Fentanyl.
All three defendants were indicted by a federal grand jury in May of 2022. Antoine Ray Thomas pleaded guilty to Conspiracy to Distribute Methamphetamine and Possession of a Firearm by a Prohibited Person on November 8, 2023; Tyrin Thomas, Jr. pleaded guilty to Conspiracy to Distribute Methamphetamine on October 27, 2023; and Lyric Christina Simon Tschetter pleaded guilty to Conspiracy to Distribute Fentanyl on November 21, 2023.
A fourth defendant, Stevie Thomas, was indicted in this conspiracy on September 12, 2023, on the charges of Conspiracy to Distribute 500 Grams or more of Methamphetamine, Conspiracy to Distribute 400 Grams or more of Fentanyl, and Conspiracy to Launder Monetary Instruments. He is currently set for trial in May of 2024.
These defendants were operating a large methamphetamine and fentanyl distribution organization in South Dakota. Their source was located in California who was supplied by sources in Mexico. This conspiracy involved fifty pounds of methamphetamine, hundreds of pills containing fentanyl, and several firearms and ammunition.
This case is part of 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.
This case was investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Minnehaha County Sheriff’s Office, and the Sioux Falls Police Department. Assistant U.S. Attorneys Elizabeth Ebert and Mark Hodges prosecuted the case.
All three defendants were immediately remanded to the custody of the U.S. Marshals Service.
Two Puerto Rican Men Sentenced on Cocaine Smuggling ConvictionsRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Chief District Judge Robert A. Molloy sentenced Pedro Juan Ramos-Ramirez, 28, and Gerald Albert Cruz, 27, both of Puerto Rico to 48 and 57 months incarceration, followed by four years of supervised release and $100 special assessment each, on their convictions for Conspiracy to Possess with Intent to Distribute Cocaine While on Board a Vessel Subject to the Jurisdiction of the United States.
According to court documents, on December 29, 2021, Customs and Border Protection Air Marine Operations officers interdicted a go-fast vessel operating without navigational lights heading towards Puerto Rico. As the officer pursued the vessel, the occupants began throwing bails into the ocean. Officers disabled the vessel’s engine forcing it to stop, and later recovered the bales from the ocean which contained 73 bricks of cocaine weighing 75 kilograms.
This case was investigated by Customs and Border Protection Air and Marine Operation, Drug Enforcement Administration and Homeland Security Investigations, and was prosecuted by Assistant United States Attorney Everard E. Potter.
Sioux Falls Woman Sentenced for Her Role in Fentanyl and Meth Conspiracy, While Co-Conspirators Await SentencingRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on February 5, 2024.
Tayler Alyssa Hanssen, 29, was sentenced to five years in federal prison, followed by five years of supervised release. She was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Hanssen was indicted for Conspiracy to Distribute at least 400 grams of Fentanyl by a federal grand jury in December of 2022. She pleaded guilty on October 30, 2023.
Hanssen obtained pills that contained fentanyl from co-conspirators and then distributed the pills to others in the Sioux Falls area. She was personally involved in the distribution of more than 6,000 pills containing fentanyl.
The co-conspirators, who were indicted with Hanssen, are Kaitlin Tierra Meis, who pleaded guilty to Conspiracy to Distribute Methamphetamine on January 5, 2024, and Lauren Gena Pourier, who pleaded guilty to Conspiracy to Distribute Methamphetamine on December 21, 2024. Meis is set to be sentenced on April 1, 2024, and Pourier is set to be sentenced on March 11, 2024. Both Meis and Pourier are from Sioux Falls.
This case was investigated by the FBI, South Dakota Highway Patrol, Minnehaha County Sheriff’s Office, and the Sioux Falls Police Department. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Hanssen was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced to Federal Prison for Prohibited Possession of a FirearmRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man, convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on February 16, 2024, in Sioux Falls, South Dakota.
Travene Tyrone Myers, age 42, was sentenced to seven years and eight months federal prison, followed by three years of supervised release. He was ordered to pay $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Myers was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in September of 2023. He pleaded guilty on November 7, 2023.
The conviction stems from an incident on July 10, 2023, when law enforcement was dispatched to an address in Sioux Falls. When officers arrived, they located Myers in a vehicle and initiated a stop. During a subsequent search of the vehicle, an officer located a fully loaded, semi-automatic pistol under the driver seat, which Myers, a convicted felon, admitted to possessing.
This case was investigated by Homeland Security Investigations, the Sioux Falls Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. U.S. Attorney Alison J. Ramsdell prosecuted the case.
This case is part of 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.
Myers was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Readout of Deputy Attorney General Lisa Monaco’s Participation in the 2024 Munich Security ConferenceRead the Press Release
Deputy Attorney General (AG) Lisa Monaco traveled to Munich this week to participate in the 60th annual Munich Security Conference (MSC), which brings together leaders from around the world to confront current and emerging threats to our collective, global security.
The Deputy AG delivered the closing keynote at the Munich Cyber Security Conference, where she highlighted the continuing successes of the Justice Department’s proactive cyber strategy that prioritizes near-term disruptions and victim protection, while tackling the broader ecosystem that supports cyber criminals, including the abuse of crypto-currencies and disruptive technologies. Emphasizing the Department’s commitment to this strategy, she said: “You’re going to continue to see that same tempo of prevention-focused, disruption-focused, victim-centered action, and you're going to see it at the same pace – so stay tuned.”
During the MSC, the Deputy AG met with law enforcement and intelligence counterparts, as well as international thought leaders, to further discuss the warnings she issued in London about the risks posed to global elections this year by nation-state actors’ misuse of disruptive technology — specifically, artificial intelligence (AI). Referencing the work of the Disruptive Technology Strike Force, which she launched one year ago to strike back against adversaries trying to steal America’s most advanced technology, she again described AI as the “ultimate disruptive technology” and reiterated her announcement at Oxford University earlier this week that going forward, whenever appropriate, the Justice Department will seek stiffer prison sentences for criminal offenses made significantly more dangerous by the misuse of AI.
Joined at the MSC by Secretary General Tõnis Saar of the Estonian Ministry of Justice, the Deputy Attorney General announced a first-of-its-kind international sharing agreement between the United States and Estonia that will transfer to Ukraine nearly $500,000 in funds confiscated in connection with an illicit Russian procurement network. Those funds will be used to support the people of Ukraine, as they continue to bravely defend themselves against Russia’s unprovoked and illegal invasion. In signing the agreement, the Deputy AG emphasized that the Justice Department “will continue pursuing creative solutions to ensure the Ukrainian people can respond and rebuild. Dollar by dollar. House by house. Town by town.”
While at the MSC, the Deputy AG also held bilateral meetings with foreign leaders and international law enforcement counterparts, including Prime Minister Mohammed Shia’ Sabbar Al-Sudani of Iraq, President Bernardo Arévalo of Guatemala, European Commissioner for Home Affairs Ylva Johansson, Foreign Minister Margus Tsahkna of Estonia, and Secretary General of Interpol Jurgen Stock. In all of her engagements, the Deputy AG reiterated the importance of international partnerships in combating transnational threats, including malign state interference, terrorism, narcotics trafficking, and human smuggling.
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MSC MSC MSCPine Ridge Man Sentenced to 45 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange has sentenced a Pine Ridge, South Dakota, man convicted of Second-Degree Murder, Robbery, Carjacking, and Brandishing a Firearm During a Crime of Violence. The sentencing took place on February 6, 2024.
JT Myore, 37, was sentenced to 45 years in federal prison, followed by 10 years of supervised release, and ordered to pay $400 in special assessments to the Federal Crime Victims Fund.
JT Myore was also indicted for Carjacking, Robbery, Assault Resulting in Serious Bodily Injury, and Assault with a Dangerous Weapon by a federal grand jury in January of 2023. He was found guilty of Robbery, Carjacking, and Brandishing a Firearm During a Crime of Violence following a jury trial in federal district court on September 27, 2023. He was also indicted for Second-Degree Murder by a federal grand jury in August of 2021, and found guilty of Second-Degree Murder following a jury trial on November 9, 2023.
In August of 2019, Myore and a co-defendant brandished firearms in order to carjack a Ford Freestyle from another male in Pine Ridge. In May of 2021, Myore and his co-defendants forcibly assaulted a male in Pine Ridge in order to steal his Toyota Celica. The male sustained a broken arm and cuts and contusions to his head and face.
In May of 2021, Myore was at a party at a residence just outside of Pine Ridge. He was intoxicated and a verbal confrontation ensued among some of the party-goers and the male victim. The victim attempted to walk away, but before he could get away, Myore stabbed him to death with a knife.
These cases were investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Megan Poppen and Anna Lindrooth prosecuted the case.
Myore was immediately remanded to the custody of the U.S. Marshals Service.
Matanuska Valley Woman charged with healthcare fraud, false statementsRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment charging a Matanuska Valley woman with healthcare fraud and with making a false statement in a loan application.
According to court documents, beginning in January 2017, Melissa Ann Dobbs, 50, allegedly executed and attempted to execute a scheme to defraud healthcare benefit programs. The indictment also alleges that Dobbs made a false statement to a federally insured bank. According to State of Alaska records, Dobbs holds a professional behavior analyst license.
Dobbs is charged with one count of healthcare fraud in violation of 18 U.S.C. §1347, and one count for a false statement in a loan application in violation of 18 U.S.C. §1014. The defendant made her initial court appearance on February 6, 2024, before U.S. Magistrate Judge Matthew M. Scoble of the United States District Court for the District of Alaska. If convicted, she faces a maximum penalty of 10 years of imprisonment for the healthcare fraud charge, plus an additional 30 years for the bank loan fraud charge, and a cumulative fine of up to $500,000. Further, the indictment alleges that the Court may order forfeiture of all proceeds traceable to the offense, including funds already seized by the State of Alaska. A federal district court judge will determine any sentence after conviction and will consider the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska, Special Agent in Charge Bryan Denny of the Defense Criminal Investigative Service Seattle Resident Agency, and Special Agent in Charge Weston King of the Small Business Administration Office of Inspector General, Western Regional Office made the announcement.
The Offices of Inspector General of the United States Department of Defense and the Small Business Administration are investigating the case.
Assistant U.S. Attorney Morgan Walker is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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 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 www.justice.gov/coronavirus.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Illinois Man Sentenced to Federal Prison for Passing Counterfeit United States Currency and Attempted Passing Counterfeit United States CurrencyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Chicago, Illinois, man convicted of Passing Counterfeit U.S. Currency and Attempted Passing Counterfeit U.S. Currency. The sentencing took place on February 12, 2024, in Sioux Falls, South Dakota.
Shavez Moody, age 28, was sentenced to one year and three months in federal prison, followed by three years of supervised release. He was ordered to pay $817.54 in restitution to retail stores where he had passed counterfeit currency and $200 as a statutorily required special assessment to the Federal Crime Victims Fund.
Moody was indicted for Passing Counterfeit U.S. Currency and Attempted Passing Counterfeit U.S. Currency by a federal grand jury in August of 2023. He pleaded guilty on November 7, 2023.
Moody passed and attempted to pass counterfeit $100 bills at retail stores in Sioux Falls and Aberdeen, South Dakota, knowing the bills were counterfeit and receiving goods and genuine currency as change. Moody did so intending to defraud the retailers.
This case was investigated by U.S. Secret Service, Aberdeen Police Department, Watertown Police Department, Sioux Falls Police Department, South Dakota Fusion Center, and the U.S. Marshals Service. Assistant U.S. Attorney Connie Larson prosecuted the case.
Moody was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Four Venezuelan Men Charged with Smuggling over Two Tons of Cocaine on the South Shore of St. CroixRead the Press Release
St. Croix, VI –United States Attorney Delia L. Smith expressed her appreciation to Homeland Security Investigations, United States Coast Guard, British Royal Navy, Drug Enforcement Administration, and the Virgin Islands Police Department for their diligent and unwavering effort in apprehending four individuals charged with possession with intent to distribute approximately 2,700 kilograms of cocaine.
“We continue to work closely with our Border Protection partners to dismantle transnational criminal organizations responsible for smuggling narcotics into the U.S. Virgin Islands”, stated Homeland Security Investigations Special Agent in Charge Rebecca Gonzalez-Ramos. “The shared resolve between the Coast Guard and our local, federal and regional partners in interdicting major drug smuggling activities in the high seas is instrumental to safeguarding our citizens in the U.S. Virgin Islands, the nation’s southern-most maritime border, from this threat,” said Capt. José Díaz, U.S. Coast Guard Sector San Juan Commander.” Drug Enforcement Administration’s Special Agent in Charge Denise Foster stated, “We will continue to work with our counterparts and allocate all our law enforcement resources to make a greater impact in vulnerable areas where criminal organizations dedicated to drug trafficking are causing greater damage.”
According to court documents, on February 11, 2024, at approximately 11:00 p.m., Customs and Border Protection detected a suspicious vessel traveling at approximately 67 nautical miles south of St Croix. The United States Coast Guard, assisted by the British Royal Navy, attempted to intercept the suspicious vessel, at which point the occupants on board the vessel began jettisoning bales of suspected narcotics overboard. On February 12, 2024, at approximately 3:00 a.m., vessel landed at Long Point, St. Croix, its occupants, later identified as Daniel Marval-Navarro, Desael Carreno-Carreno, Felix Jose Bermudez, and Luis Lugo-Marval, were taken into custody after they were observed walking in an open field in Estate Carlton wearing dripping wet clothing. Agents recovered the vessel and 74 bales containing 2,100 kilograms of cocaine. The United States Coast Guard later recovered an additional 26 bales which contained over 600 kilograms of cocaine. Based on estimates by the United Nations Office on Drugs and Crimes, the street value of 2,700 kilograms of cocaine in excess of $77 million.
This case is being investigated by Homeland Security Investigations, Drug Enforcement Administration and Virgin Islands Police Department and prosecuted by Assistant United States Attorney Evan Rikhye. United States Attorney Delia L. Smith reminds the public that a criminal complaint is merely an allegation and that all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ecuadorian Man Sentenced in Cocaine Trafficking CaseRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Carlos Benitez Estupinan, 30, of Ecuador, was sentenced by District Judge Wilma A. Lewis to 57 months incarceration, followed by two years of supervised release, and a $100 special assessment, on his Conspiracy to Possess a Controlled Substance with Intent to Distribute While on Board a Vessel Subject to the Jurisdiction of the United States.
According to court documents, on November 15, 2021, while on routine patrol in the eastern Pacific Ocean, a maritime patrol aircraft detected a low-profile vessel traveling at approximately 77 nautical miles north of the Galapagos Islands, Ecuador. The United States Coast Guard Cutter Hamilton later intercepted the 52’ vessel which had no flag flown, no registration numbers, and no name painted on the hull. Four individuals, including Estupinan, were found on board the vessel, and neither individual claimed nationality for the vessel, subjecting the vessel to the jurisdiction of the United States. Coast Guard officers recovered 43 bales which contained 1,298 kilograms of cocaine from the vessel.
This case was investigated by the United States Coast Guard, Homeland Security Investigations and the Drug Enforcement Administration and prosecuted by Assistant United States Attorneys Daniel H. Huston. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Anchorage woman sentenced to prison for Social Security fraudRead the Press Release
ANCHORAGE, Alaska – An Anchorage woman was sentenced to nine months in prison for stealing and misusing Social Security benefits.
According to court documents, Jayel Jean Lane, 34, applied for Social Security benefits on behalf of a minor in 2013. She received benefits for the minor from 2014 to 2022.
For roughly seven years, Lane filed false reporting with the Social Security Administration, claiming that she spent the benefits on behalf of the minor, when, in fact, she spent the money for her own personal use. In total, Lane stole over $76,000 of the minor’s benefits.
On Feb. 7, 2024, the Court denied Lane’s request to impose a sentence of home confinement and instead adopted the United States’ recommendation and sentenced the defendant to nine months’ incarceration. When delivering the sentence, the Court cited hopes of deterring others from taking money that Congress has determined necessary for those in need. The Court also ordered Lane to pay restitution to the Social Security Administration in the amount of $76, 998.74.
“The defendant’s actions caused direct harm to the minor victim and the Social Security Administration and was an affront to American taxpayers who play a significant role in assisting those who receive these benefits,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “My office will continue to work with our law enforcement partners to investigate and prosecute perpetrators who steal from community members, taxpayers and the federal government.”
“This sentence holds Ms. Lane accountable for intentionally using her son’s Social Security benefits for her own personal gain and failure to notify SSA of a change in guardianship of the beneficiary,” said Inspector General Gail S. Ennis for SSA. “I want to thank the U.S. Attorney’s Office for prosecuting this case.”
The Social Security Administration Office of the Inspector General investigated the case.
Assistant U.S. Attorney Ainsley McNerney prosecuted the case.
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Anchorage businesswoman charged with fraudulently obtaining and laundering roughly $1M in Covid-19 relief fundsRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment charging an Anchorage businesswoman with allegedly misusing Covid-19 relief funds for personal gain.
According to court documents, Cheryl Labrie, 36, is the owner of AKBS LLC, an entity with the trade name Liberty Tax Service that provides bookkeeping, payroll and bill pay services in Alaska. Over the course of a year, Labrie applied for and obtained multiple federal loans and advances, totaling approximately $1 million.
In her first loan application, the defendant failed to disclose a prior felony conviction on the application, and then continued to claim that all statements on the original loan application were true. The indictment alleges that in subsequent applications the defendant inflated her businesses’ average monthly payroll expenses and the total number of employees.
In total, Labrie applied for and obtained an Economic Injury Disaster Loans (EIDL) advance, two EIDL loans, two Paycheck Protection Program (PPP) loans and the forgiveness of two PPP loans for AKBS LLC. The funds loaned to the business were allegedly transferred from her official business bank account to her personal bank account. She used the money to facilitate the purchase of a new home, pay an outstanding tax debt of a separate entity, and pay the payroll expenses for a marijuana dispensary.
Labrie is charged with four counts of wire fraud in violation of 18 U.S.C. §1343, two counts of bank fraud in violation of 18 U.S.C. §1344, and six counts of money laundering in violation of 18 U.S.C. §1957. Labrie made her initial court appearance on Feb. 1 before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska.
U.S. Attorney S. Lane Tucker of the District of Alaska and Small Business Administration Office of Inspector General, Special Agent in Charge Weston King of the Small Business Administration Office of Inspector General Western Regional Office made the announcement.
The Small Business Administration Office of Inspector General, the U.S. Treasury Inspector General for Tax Administration and the FBI Anchorage Field Office are investigating the case.
Assistant U.S. Attorneys Michael Heyman and Mac Caille Petursson are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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 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 www.justice.gov/coronavirus.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Anchorage business owner charged with wire fraud related to applications for Covid-19 recovery fundsRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment in October charging an Anchorage businessman with allegedly committing wire fraud related to his application for Covid-19 recovery funds. He was transferred from Texas to Alaska this month.
According to court documents, Lloyd Pennebaker, 58, is the owner of The Pennebaker Group, an organization doing business in Anchorage under the name Cornerstone Auto Sales. Pennebaker was also convicted of three felonies in September 2002.
From April 2020 to May 2021, the defendant applied for and obtained Economic Injury Disaster (EIDL) loans for Cornerstone Auto Sales and received $122,500 in federal funding. Court documents allege Pennebaker made false statements regarding his criminal history on the applications for the EIDL loans, which were sent through interstate communications.
Pennebaker is charged with one count wire fraud in violation of 18 U.S.C. §1343.
U.S. Attorney S. Lane Tucker of the District of Alaska and Special Agent in Charge Weston King of the Small Business Administration Office of Inspector General Western Regional Office made the announcement.
The Small Business Administration Office of Inspector General is investigating the case.
Assistant U.S. Attorney Carly Vosacek is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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 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 www.justice.gov/coronavirus.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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18 February 2024
Maryland Real Estate Investor Sentenced for Stealing a Residence in Northwest Washington D.C.Read the Press Release
WASHINGTON – Franklin A. Olaitan, 51, of Beltsville, Maryland, was sentenced to 40 months in prison for stealing a residential property in Northwest Washington D.C., announced U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division. The sentence was handed down on Friday, February 16, 2024, by U.S. District Court Judge Paul L. Friedman who also ordered Olaitan to serve three years of supervised release, to not buy or lease any properties during the period of supervised release, to pay at least $580,663.73 in restitution and a $111,159.63 criminal forfeiture money judgment and pay a $100 assessment.
Olaitan pleaded guilty before U.S. District Court Judge Carl J. Nichols on Aug. 15, 2023, to one count of wire fraud. As part of the plea, Olaitan admitted he caused the filing of a false deed transferring the property, which he immediately resold to a third-party, pocketing the sale proceeds. As a result of the fraudulent scheme, Olaitan caused over $600,000 in losses to the various victims.
According to the government’s evidence, between September 23, 2016, through March 22, 2017, Olaitan stole a real property on First Street, NW, using a fake deed and other falsified documents in order to rapidly sell the property, pocketing the sale proceeds, and defrauding the true owner of the property, settlement company, mortgage lenders, title company, and the buyer. Olaitan impersonated the victim owner through false documents which enabled him to get away with his theft for a significant time during which the buyer of the property spent over $600,000 renovating the property.
Olaitan was arrested Dec. 15, 2021, in the District.
The FBI’s Washington Field Office conducted the investigation.
Assistant U.S. Attorneys Diane Lucas and Christopher Howland prosecuted the case with valuable assistance from Paralegal Specialists Lisa Abbe and Liliana Villamizar, Victim-Witness Service Coordinator Tonya Jones, Supervisory Litigation Technology Specialist Leif Hickling, Litigation Technology Specialist Jeanie Latimore-Brown, and former Assistant U.S. Attorneys Derrick Williams and Veronica Sanchez.
Maryland Man Sentenced to 12 Years for Deadly Homicide in Northeast WashingtonRead the Press Release
WASHINGTON – Jamaarr Morgan, 23, of Hyattsville, Maryland, was sentenced in the Superior Court of the District of Columbia to 12 years in prison for the fatal shooting of Jacques Russ, on December 14, 2021, in the Unit block of 61st Street Northeast, Washington D.C., announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Morgan pleaded guilty, on July 12, 2023, to voluntary manslaughter while armed. Under the District of Columbia Voluntary Sentencing Guidelines, Morgan faced a sentencing range of 90 to 180 months of incarceration. On Friday, February 16, 2024, the Honorable Marisa Demeo sentenced Morgan to 144 months in prison followed by five years of supervised release.
According to the government’s evidence, on December 14, 2021, Morgan encountered Mr. Russ in the Unit block of 61st Street Northeast on December 14, 2021, around 6:50 a.m., as the victim was on his way to work. Morgan proceeded to shoot the victim once in the head before fleeing the scene. Mr. Russ’s body was found lying in the street a short time later by a passerby.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged those who worked on the case from the U.S. Attorney’s Office including Assistant U.S. Attorney Ariel Dean, who prosecuted the case, with valuable assistance by Paralegal Specialists Tasha Harris and Lauren Douglas and Victim Witness Program Specialist Karina Hernandez.
17 February 2024
Justice Department Transfers Approximately $500,000 in Forfeited Russian Funds to Estonia for Benefit of UkraineRead the Press Release
Deputy Attorney General Lisa Monaco and Estonian Secretary General Tõnis Saar announced today at the Munich Security Conference the transfer of nearly $500,000 in forfeited Russian funds for the purpose of providing aid to Ukraine. The funds were forfeited by the United States following the breakup of an illegal procurement network attempting to import into Russia a high-precision, U.S.-origin machine tool with uses in the defense and nuclear proliferation sectors. Additionally, on Wednesday, Feb. 14, a citizen of Latvia charged criminally in connection with the procurement scheme pleaded guilty to violating U.S. export laws and regulations.
This transfer is the first of its kind from the United States to a foreign ally for the express purpose of assisting Ukraine, and the second time the Justice Department’s Task Force KleptoCapture has made confiscated Russian assets available for Ukraine—having provided $5.4 million in forfeited funds last year to the State Department for the support of Ukrainian war veterans. The confiscated funds are being transferred to Estonia since under current authorities, the facts of this case do not allow for a direct transfer to Ukraine. Estonia will use the funds for a project to expedite damage assessments and critical repairs to the Ukrainian electrical distribution and transmission system, which have been purposefully targeted by Russian forces.
“Today’s announcement demonstrates the unwavering resolve of the United States and our Estonian partners to cut off President Putin's access to the western technologies he relies on to wage an illegal war against Ukraine,” said Deputy Attorney General Lisa Monaco, who signed the transfer agreement on behalf of the United States. “This step for justice and restoration blazes a new trail toward combating Russia’s ongoing brutality. The Department of Justice will continue pursuing creative solutions to ensure the Ukrainian people can respond and rebuild.”
“Preventing cross-border crime has been and will be an even greater priority in the future,” said Secretary General Tõnis Saar of the Estonian Ministry of Justice.“Effective prosecution of sanctioned crimes is a very important part of this. In my opinion, this agreement provides additional motivation to deal with sanctions violations even more. The reason is very simple, the goal here is not only to detect, prosecute and ensure justice, but to direct illegal income to the victim, i.e. Ukraine. I hope that this will become the new normality for sanctioned crimes in other countries in the future.”
“Since the start of Russia’s full-scale invasion of Ukraine, the Department of Justice, together with its U.S. and overseas partners, has leveraged every tool available to cut off the Kremlin from the resources it needs to prosecute its war of aggression. These efforts are yielding results,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today, we demonstrate once again our commitment to holding Russia to account and to aiding the people of Ukraine as they bravely resist and rebuild.”
“I commend the investigators who prevented this sensitive piece of Connecticut-manufactured equipment from crossing the Russian border, and our team of prosecutors who are not only bringing the individuals and entities involved to justice but have worked to seize and forfeit the funds involved in its purchase,” said U.S. Attorney Vanessa Roberts Avery for the District of Connecticut. “We thank our law enforcement partners and the Government of the Republic of Estonia for helping us achieve our mission to chase down the assets of those who violate our laws and to ensure proper compensation to their victims.”
“This agreement between the United States and Estonia not only reinforces our strong partnership, it fortifies the commitments of both countries to stand up to Russian aggression,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “This transfer stems from a joint investigation into the attempted illegal shipment of military materials to aid the Russian war against Ukraine. HSI will continue to ensure the safety of the homeland of this great nation, and when necessary, that of our allies.”
“The Putin regime has purposefully targeted critical and civil infrastructure in Ukraine to weaken morale, cripple the Ukrainian economy, and use winter as a weapon of war. The funds we are providing to Estonia today will be used to dramatically reduce the time needed to evaluate and prioritize urgent repairs to Ukraine’s electrical infrastructure, all in effort to literally keep the lights on,” said Task Force KleptoCapture Co-Director Michael Khoo.
This action demonstrates that the Department and its international partners will seek and develop novel solutions to ensure that the profits of Russian criminal networks are redirected for the support of the Ukrainian people.
The agreement with Estonia showcases the joint commitments of the United States and Estonia to both enforce the export control regimes that deprive the Russian war machine of critical technologies and supplies and use the confiscated criminal proceeds to sustain Ukraine as it resists illegal Russian aggression.
In March 2023, an investigation into the attempted smuggling of a dual-use export-controlled item to Russia resulted in the forfeiture of $484,696, representing funds wired into the United States to purchase the item. The item, known as a jig grinder, is a high-precision grinding machine system that requires a license for export or reexport to Russia because of its applications in nuclear proliferation and defense programs. The jig grinder was intercepted before it could reach Russia.
In addition to the forfeiture, U.S. authorities, with the active support of the Estonian Prosecutor General’s Office and the Estonian Tax and Customs Board, charged multiple individuals and companies who were part of the smuggling network. The transfer of the forfeited funds to Estonia is in recognition of the crucial assistance received from the Estonian authorities.
Among those criminally charged in the smuggling case, Latvian national Vadims Ananics, 47, was arrested in Latvia on Oct. 18, 2022, and pleaded guilty earlier this week in federal court in Connecticut. Ananics admitted to his role in the scheme to violate U.S. export laws and regulations by attempting to smuggle a dual-use export-controlled item to Russia.
According to court documents and statements made in court, Ananics was the general manager of CNC Weld, a Latvia-based corporation. Beginning in 2018, Ananics conspired with others, including individuals in Russia and a Russia-based company, to violate U.S. export laws and regulations to smuggle a 500 Series CPWZ Precision jig grinder that was manufactured in Connecticut to Russia.
In August 2019, to finalize the purchase of the jig grinder, Ananics and others traveled to Bridgeport, Connecticut, where he informed the sellers that the jig grinder was being purchased for the benefit of CNC Weld. Only after the jig grinder was exported from the United States did Ananics inform the sellers that CNC Weld was not the end user.
Ananics pleaded guilty to one count of conspiracy to violate the Export Control Reform Act, an offense that carries a maximum penalty of five years in prison. A sentencing date has not yet been scheduled.
U.S. authorities, working with Latvian authorities, intercepted the jig grinder in Riga, Latvia, before it was to be shipped to Russia. In March 2023, $484,696 in funds involved in the purchase of the jig grinder were subsequently forfeited.
In turn, Estonia has, in consultation with the United States, agreed to use the transferred funds to finance a drone-based program to assess the damage Russian aggression has done to Ukraine’s electrical distribution and transmission infrastructure.
In April 2023, an additional €312,192.44 (approximately $342,000) was ordered forfeited as part of a criminal sentence imposed on one of the shell companies involved in the jig-grinder smuggling network. The funds are currently held in Latvia pending final enforcement of the U.S. forfeiture order.
HSI Field Offices in New Haven, Connecticut; Portland Oregon; and the Hague, Netherlands; the U.S. Department of Commerce’s Office of Export Enforcement in Boston; and the FBI handled the investigation. In addition to the assistance by Estonian authorities, the Prosecutor General’s Office of the Republic of Latvia, the Latvian Tax and Customs Police, and the Latvian State Police provided valuable assistance.
Assistant U.S. Attorneys Rahul Kale, Konstantin Lantsman, Stephanie Levick, and David Nelson for the District of Connecticut and Trial Attorneys Brendan Geary and Matthew Anzaldi of the National Security Division’s Counterintelligence and Export Control Section are handling the investigation and the Ananics prosecution. The Justice Department’s Office of International Affairs provided valuable assistance. The international sharing agreement was prepared with the support of the Criminal Division’s Money Laundering and Asset Recovery Section, the Treasury Executive Office for Asset Forfeiture, and the State Department.
The investigation 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.
D.C. Woman Charged in Death of Three-Year-Old Child from Fentanyl PoisoningRead the Press Release
WASHINGTON – Sasha McCoy, 27, of Washington, D.C., was arrested on February 15, 2024, on the charge of first-degree felony murder in the death of her three-year-old daughter on October 28, 2022, U.S. Attorney Matthew M. Graves announced.
Defendant McCoy was arraigned on February 16th in D.C. Superior Court where she entered a plea of not guilty to first-degree murder and first-degree cruelty to children for allegedly allowing her child to ingest a lethal dose of fentanyl. The Honorable Renee Raymond found probable cause that the defendant committed the murder and held her without bond pending her preliminary hearing on March 8, 2024, before Judge Brandt in Courtroom 201.
In announcing the arrest, U.S. Attorney Graves commended the work of those investigating the case from the Metropolitan Police Department (MPD) and Assistant United States Attorney Emma McArthur for her efforts in prosecuting this case.
An arrest on a complaint is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
16 February 2024
Zuni Man Pleads Guilty to Federal Firearms OffenseRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Ian Channing Lasiloo pleaded guilty in federal court to using, carrying and brandishing a firearm during and in relation to a crime of violence. Lasiloo, 31, of Zuni, and an enrolled member of the Zuni Tribe, voluntarily surrendered and will remain in custody pending sentencing, which has not been set.
A federal grand jury indicted Lasiloo on March 21, 2023. In his plea agreement, Laslioo admitted that he drove to of the residence of John Doe and asked Doe “where my 40 was.” John Doe replied that he didn’t owe Lasiloo anything. While still in the driver’s seat of the car, and approximately five feet away from John Doe, Lasiloo pointed a .22 caliber revolver at John Doe’s face and then pointed the weapon downwards. Lasiloo then fired the weapon one time, shooting John Doe in the heel.
At sentencing, Lasiloo faces a minimum of seven years and up to life in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Robert James Booth II is prosecuting the case.
View the Plea Agreement# # #
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Yellville Man Sentenced to 30 Years in Federal Prison for Online Sexual Enticement of a MinorRead the Press Release
Fayetteville – Isaac James Melder, age 42, of Yellville was sentenced on February 13, 2024, to 360 months in prison without the possibility of parole after being found guilty of communicating with a minor through the internet to entice the minor to engage in illegal sexual activity. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the U.S. District Court in Fayetteville.
According to court documents, in May of 2022, a fourteen-year-old female was reported missing after failing to get on the afternoon school bus. An extensive search involving multiple law enforcement agencies began, during which officers discovered that Melder and the victim had communicated via the internet using an Xbox. The messages revealed the two had planned to run away and live in a cave in the Marion County wilderness. The investigation further revealed that Melder had groomed both the victim and her family by providing groceries, money, alcohol, and marijuana and referred to the victim as his wife.
On June 22, 2022, an informant led law enforcement to the cave where Melder and the victim had lived since their May disappearance. Melder was immediately taken into state custody.
Melder was indicted by a Grand Jury in the Western District in April of 2023 and entered a plea of guilty in July 2023.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
Mountain Home Police Department, Baxter County Sheriff’s Office, Marion County Sheriff’s Office, Arkansas State Police, Flippin Police Department, Arkansas Department of Correction, the U.S. Marshal’s Service, Federal Bureau of Investigation, Harrison Police Department, Arkansas Game and Fish Commission, Arkansas State Parks, the 14th Judicial District Drug Task Force, investigated or assisted in the search in the case.
Assistant U.S. Attorney Devon Still prosecuted the case for the United States.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Weeki Wachee Couple Sentenced for Conspiring to Sell New Opioid VariantRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Jacob Spinoza (50, Weeki Wachee) to nine years and Veronica Jo Barback (29, Weeki Wachee) to three years and four months in federal prison, respectively, for conspiring to distribute protonitazene and metonitazene. Spinoza and Barback were also ordered to forfeit several firearms and assorted ammunition traceable to the offense. Spinoza pleaded guilty on September 7, 2023, and Barback pleaded guilty on September 12, 2023.
According to court records, Spinoza and Barback conspired to distribute two chemicals in the nitazene class: protonitazene and metonitazene. These are chemicals intended to have similar effects on the body as fentanyl, with varying degrees of potency stronger than fentanyl. Spinoza obtained the chemicals from China and the packages were delivered to the Middle District of Florida. On October 7, 2022, law enforcement officers executed a search warrant at the residence the two shared and recovered trafficking amounts of protonitazene and metonitazene, as well as cash, digital scales, drug paraphernalia, firearms, and ammunition.
This case was investigated by the Drug Enforcement Administration and Hernando County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Dan Baeza.
Washington man sentenced to 20 years for sexually enticing, exploiting minorRead the Press Release
ANCHORAGE, Alaska – A Washington man was sentenced today to 20 years in prison for sexually enticing and exploiting a minor from a rural Alaskan village.
According to court documents, Brian Powell, 41, of Spokane, Washington, enticed and coerced the 12-year-old juvenile victim. Powell, 40, claimed to be “Brian Gaither” and that he was 27 years old.
Powell communicated with the victim through social media, text messages and calls nearly every day for roughly five months. Powell exploited the victim in order to obtain child sexual abuse material.
Powell pleaded guilty to coercing a minor in August 2023. He is required to pay over $35,000 in restitution and serve 15 years’ supervised release as part of his sentence.
When handing down the sentence, the Court cited concern for Powell’s actions in this case and the need to protect the public from future crimes of this nature that the defendant could potentially commit.
"Mr. Powell’s exploitation of this victim in this case is abhorrent but does not define that child’s life,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Our community is safer today thanks to those who came forward to disclose Mr. Powell’s bad acts and to the hard work done by law enforcement across the state. My office maintains our unwavering commitment to working with law enforcement to vigorously prosecute predators who exploit our children.”
"HSI is dedicated to pursuing justice for children who endure abuse and exploitation online, both locally and globally," said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. "This successful case was the result of seamless collaboration between HSI Anchorage, Alaska State Troopers, HSI Spokane, Spokane Police Department, U.S. Marshals Service, as well as the U.S. Attorney’s Offices in both districts. Together, we located and apprehended the target of our investigation, while also providing support to the victims."
“Your Alaska State Troopers will continue to work with our local, state, and federal law enforcement partners to hold anyone that victimizes Alaska’s children responsible for their reprehensible actions,” stated Alaska State Troopers Colonel Maurice Hughes. “I hope that this significant prison sentence serves as a deterrent that criminally enticing youth comes with a steep penalty. Know that law enforcement will catch up to you and arrest you.”
The Alaska State Troopers and Homeland Security Investigations Anchorage, Alaska, Office investigated the case. If anyone has information concerning Powell’s actions or may have encountered someone in person or online using the name “Brian Powell,” “Brian Gaither” or “Tyshawn Gaither,” please contact the Homeland Security Investigations tip line at (866) 347-2423.
Assistant U.S. Attorneys Ainsley McNerney and Adam Alexander prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
UPDATE: This release has been amended with a different tip line phone number.
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