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15 February 2024
Rhode Island Man Charged with Maliciously Damaging Shiloh Gospel TempleRead the Press Release
PROVIDENCE, RI – A Rhode Island man is in federal custody after being charged by way of a federal criminal complaint with maliciously damaging or destroying by means of fire or explosion any building or other real property. These charges are brought as the result of an ongoing investigation into multiple fires set around the exterior of Shiloh Gospel Temple in North Providence, RI, on February 11, 2024, announced Zachary A. Cunha, United States Attorney for the District of Rhode Island.
Kevin Colantonio, 34, of North Providence, RI, was arrested at his home today without incident by agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, working with members of the North Providence, RI, Police Department and the Rhode Island State Fire Marshal’s Office. He was ordered detained in federal custody following his initial appearance in U.S. District Court.
According to documents filed in U.S. District Court in Providence, and in remarks presented by U.S. Attorney Zachary Cunha at a news conference following the court proceedings, it is alleged that Colantonio set several fires around the exterior of Shiloh Gospel Temple shortly after midnight on February 11, 2024. The building was vacant at the time. The fire was quickly extinguished by members of the North Providence Police and Fire Departments. No injuries were reported.
The United States Attorney’s Office sought a criminal complaint late on Wednesday, based on an ongoing, multi-agency investigation that, to date, has included a review of numerous videos, witness interviews, and physical evidence collected and analyzed by investigators. The investigation is continuing.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Peter I. Roklan.
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u.s._attorney_cunha_press_conference_remarks.pdf affidavit.pdfReadout of Deputy Attorney General Lisa Monaco’s Trip to LondonRead the Press Release
Deputy Attorney General (AG) Lisa Monaco traveled to London this week to highlight the continued collaboration of the United States and United Kingdom to combat persistent threats to global security, including emerging challenges like the theft and misuse of disruptive technologies, especially artificial intelligence (AI).
In meetings with her national security and law enforcement counterparts across the U.K.’s Cabinet Office, Home Office, MI5, GCHQ, Metropolitan Police Department, and National Crime Agency, the Deputy AG emphasized the need for sustained partnership between the U.S. and U.K. against shared threats from malign state actors, especially nation-states looking to sow chaos and further their autocratic agendas amid global elections this year.
Together with Permanent Secretary Matthew Rycroft, the Deputy AG convened the second meeting of their ongoing, strategic dialogue, combining the expertise and capabilities of the Home Office and the Justice Department to identify and address emerging threats. They discussed ways both countries can continue to protect against transnational repression, cybercrime — including ransomware and fraud — and terrorism, especially in the wake of the October 7th attacks.
The Deputy AG delivered remarks at Oxford University on the promise and peril of AI. She shared the principles guiding the Justice Department as it harnesses the benefits of AI to fulfill its mission — and also outlined the Department’s approach to mitigating the risks posed by its misuse. The Deputy AG announced the launch of “Justice AI,” a series of convenings the Department will hold across civil society, academia, science, and industry to draw on varied perspectives about integrating AI.
In her speech, she stressed how AI is already lowering the barriers to entry for criminals and emboldening our adversaries. She announced that going forward, where appropriate, federal prosecutors should seek stiffer sentences for offenses made significantly more dangerous by the misuse of AI — and that if existing sentencing enhancements cannot adequately address the harms caused by misuse of AI, the Department will seek reforms to them.
The Deputy AG also highlighted the work of the Disruptive Technology Strike Force, which she launched last year to strike back against adversaries trying to siphon off America’s most advanced technology for use against us. Calling AI the “ultimate disruptive technology,” the Deputy AG emphasized that going forward, that strike force will prioritize AI in its enforcement actions.
While in London, the Deputy AG visited the American Embassy for a briefing with U.S. officials on their work and to thank them for their dedicated public service. Ambassador Jane Hartley hosted a reception in honor of the Deputy AG’s visit and to celebrate the continued collaboration between both countries.
The Deputy AG departed London for Munich, where she will participate in the Munich Security Conference and the Munich Cyber Security Conference.
Photo credit: U.S. Embassy London. Photo credit: The Oxford Martin School.Rapid City Man Receives 10 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 Rapid City, South Dakota, man convicted of Attempted Enticement of a Minor Using the Internet. The sentencing took place on February 6, 2024.
James Dreamer, age 41, was sentenced to 10 years in federal prison, followed by seven years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Dreamer will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Dreamer was indicted for Attempted Enticement of a Minor Using the Internet by a federal grand jury in August of 2023. He pleaded guilty on November 6, 2023.
Dreamer was arrested as a result of an undercover sex trafficking operation conducted during the 2023 Sturgis Motorcycle Rally, targeting internet predators. Following hundreds of Facebook and text messages with a person Dreamer believed to be a 15-year-old girl, but who was in fact an undercover agent, Dreamer proceeded to negotiate a time and place he would meet the minor to engage in unlawful sex acts. When Dreamer went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the Internet Crimes Against Children Taskforce, South Dakota Division of Criminal Investigation, Homeland Security Investigations, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Heather Knox prosecuted the case.
Dreamer was immediately remanded to the custody of the U.S. Marshals Service.
Queens Man Arrested for Bronx Kidnapping and MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Frank A. Tarentino III, the Special Agent in Charge of the Drug Enforcement Administration (“DEA”); and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a Complaint charging IVAN COLLADO with conspiracy to commit kidnapping and kidnapping resulting in death in connection with the kidnapping and murder of Raymond Resto, a/k/a “Sugar Hill Tone,” on November 26, 2023, in the Bronx. COLLADO is in custody and will be presented today before U.S. Magistrate Judge Valerie Figueredo.
U.S. Attorney Damian Williams said: “As alleged, Ivan Collado mapped out and participated in the brazen and incredibly brutal kidnapping of Raymond Resto in a Target parking lot in the Bronx. When Resto tried to escape, he was cruelly gunned down in front of his wife. Today’s charges show that the relentlessness with which my Office will investigate such alleged callous violence is unwavering, and our message to violent criminals has never been clearer: we won’t stop until justice is served.”
DEA Special Agent in Charge Frank A. Tarentino III said: “The brutality associated with this case exemplifies the dangers posed to our communities by criminal organizations. DEA and our law enforcement partners are committed to bringing those who cause the most harm to justice. I applaud the swift and diligent work by the U.S. Attorney’s Office for the Southern District of New York, the NYPD, NYSP and DEA.”
NYPD Police Commissioner Edward A. Caban said: “There is no place in civil society for the alleged acts of barbarism outlined in today’s charges. When grievous crimes like these are committed anywhere in New York City, NYPD detectives are relentless in their work to hold those involved to full account. A major component of those efforts is to keep bringing strong cases to our law enforcement partners, including the skilled prosecutors in the Office of the U.S. Attorney for the Southern District of New York.”
As alleged in the Complaint:[1]
From at least in or about November 23, 2023, through at least in or about November 26, 2023, COLLADO and others conspired to kidnap Raymond Resto, a/k/a “Sugar Hill Tone” (the “Victim”).
On or about November 25, 2023, COLLADO and a co-conspirator (“CC-1”) registered and activated a tracking device (the “Tracking Device”). The next day, on or about November 26, 2023, COLLADO and CC-1 conducted surveillance at the Victim’s home in the Bronx, New York, until approximately 3:00 a.m. COLLADO and CC-1 then followed the Victim as he left his home and drove to an enclosed parking lot in the Bronx (the “Parking Lot”). The Victim parked his car in the Parking Lot and left it overnight. Approximately one hour after the Victim left the Parking Lot, a BMW (the “BMW”) entered and pulled up next to the Victim’s unoccupied car. At the same time, COLLADO and CC-1 positioned a Nissan (the “Nissan”), registered to COLLADO, just outside of the Parking Lot where they could observe the driver of the BMW. An individual (“CC-2”) then exited the BMW from the driver’s side and bent down next to the Victim’s car. CC-2 then reentered the BMW and departed with the Nissan following close behind. From that moment until the Victim’s murder, location data for the Tracking Device that COLLADO and CC-1 activated was consistent with the location of the Victim’s car, demonstrating that CC-2 had installed the Tracking Device on the Victim’s car under COLLADO’s supervision.
On or about November 26, 2023, at approximately 6:01 p.m., the Victim and his wife returned to the Parking Lot, entered their car, and traveled to a location outside New York City. The Victim and his wife returned to the Parking Lot several hours later at approximately 11:45 p.m., parked their car in the same location, and began walking towards a cab that was waiting for them. As they approached the cab, at approximately 11:49 p.m., the BMW returned to the Parking Lot, and pulled in front of the Victim and his wife. Three kidnappers exited the BMW; two of them attempted to force the Victim into the BMW. Unable to get the Victim inside, one of the kidnappers began shooting the Victim at close range. The Victim struggled to escape while the other kidnappers also opened fire. The Victim was struck at least four times, including once in the face. The kidnappers then entered the BMW and fled the Parking Lot at approximately 11:53 p.m. The Victim was later pronounced dead at a local hospital.
On or about November 27, 2023, the Tracking Device was deactivated, and an email address associated with the Tracking Device was deleted.
If you have any information about this case, please call 866-874-8900.
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COLLADO, 46, of Queens, New York, is charged with one count of conspiracy to commit kidnapping, which carries a maximum sentence of life in prison, and one count of kidnapping resulting in death, which carries a mandatory minimum of life in prison and a maximum sentence of death.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of the DEA Task Force comprised of members of the DEA, NYPD, and New York State Police, as well as members of the NYPD’s Bronx Homicide Squad.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Ashley C. Nicolas, Courtney L. Heavey, and Joseph H. Rosenberg are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact descried therein should be treated as an allegation.
Previously Convicted Felon Found Guilty of Illegally Possessing Loaded FirearmRead the Press Release
BOSTON – A Hyde Park man was convicted yesterday by a federal jury in Boston of being a felon in possession of a Smith & Wesson pistol loaded with ammunition.
King Belin, 38, was convicted of one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 23, 2024. Belin was indicted by a federal grand jury in February 2021.
On Dec. 20, 2020, Belin was stopped by law enforcement after he failed to yield at an intersection and nearly collided with another car. During the motor vehicle stop a Smith & Wesson, Model SD40VE .40 caliber pistol, loaded with 14 rounds of .40 caliber ammunition were found in Belin’s waistband. Belin then attempted to flee, and a struggle ensued. He was immediately apprehended.
At the time of the offense, Belin was on federal supervised release for a 2015 conviction of being a felon in possession of a firearm and ammunition, for which he was sentenced to 71 months in prison. In 2010, Belin was convicted in Suffolk Superior Court of carrying a loaded firearm without a license, for which he was sentenced to 18 months in state prison and two years of probation.
The charging statute provides for a sentence of up to 10 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; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Stoughton Police Chief Donna M. McNamara made the announcement today. Assistant U.S. Attorneys John T. Dawley and Benjamin A. Tolkoff of the Organized Crime & Gang Unit are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Portsmouth Man Pleads Guilty to Assaulting Passenger on Cruise ShipRead the Press Release
NORFOLK, Va. – A Portsmouth man pleaded guilty today to assaulting a fellow passenger with a dangerous weapon, resulting in serious bodily injury, on a cruise ship last year.
According to court documents, Michael Truman, 39, assaulted a passenger aboard the Carnival “Magic” Cruise Ship on October 20, 2023. The cruise ship was off the coast of Nantucket in open waters. Truman was loudly disrupting a theater show aboard the cruise ship when he was asked twice by a fellow passenger to quiet down. After Truman refused, the passenger began to leave the area to request assistance from a cruise ship employee. Truman then smashed a cocktail glass into the victim’s face, got on top of the victim, and began striking him further. The broken glass caused significant lacerations to the victim’s face, requiring more than a dozen stitches.
Truman is scheduled to be sentenced on August 29. He faces a maximum penalty of ten years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea.
Assistant U.S. Attorneys Anthony Mozzi and Clayton LaForge are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-144.
Pierre 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 Pierre, South Dakota, man, convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on January 30, 2024, in Sioux Falls, South Dakota.
James Dubray, age 20, was sentenced to three years and one month in 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.
Dubray was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in October of 2022. He pleaded guilty on September 27, 2023.
On September 5, 2022, Dubray was inside a vehicle when it was legally stopped by law enforcement. During the stop, Dubray fled from law enforcement. He was eventually located near an apartment complex and placed under arrest. During Dubray’s arrest, he knowingly had on his person a firearm magazine as well as methamphetamine. Additionally, law enforcement found a firearm approximately 10 yards from Dubray’s location, which Dubray has discarded while running from law enforcement. At the time, Dubray was an active unlawful user of methamphetamine while in possession of a firearm. Dubray had used methamphetamine earlier that same day and had been using methamphetamine daily well before he was arrested.
Dubray is prohibited from possessing firearms because he was addicted to a controlled substance at the time he possessed the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Sioux Falls Police Department. Assistant U.S. Attorney Paige Petersen 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.
Dubray was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Pender County Man Sentenced to 30 Years in Prison for Producing Child Sexual Abuse MaterialRead the Press Release
WILMINGTON, N.C. – A Rocky Point, N.C. man was sentenced today to the statutory maximum 360 months in prison, and 10 years of supervised release, for the production of child pornography between April and October of 2020. On April 25, 2023, Thomas Frank Andrews, Jr., 39, pled guilty to the charges. Andrews was also ordered to pay a total of $36,000 in restitution to multiple victims and will be required to register as a sex offender.
According to court documents and other information presented in court, in February 2020, Andrews traveled to Vance County to have sex with a minor female he had met and groomed through social media. The minor victim reported asking Andrews to stop but he did not, and a family member caught Andrews in bed with the minor. The Vance County Sheriff’s Office (VCSO) investigated, and Andrews was charged with Second Degree Forcible Rape.
During the investigation, the VCSO received reports that Andrews, a Pender County resident, was also sexually assaulting another minor female victim who was only 13 years-old at the time. On October 22, 2020, the Pender County Sheriff’s Office (PCSO) arrested Andrews on the outstanding Vance County warrant and seized his phone. A search warrant found child sexual abuse material (CSAM) on the phone. The PCSO then obtained and executed search warrants for Andrews’ home, vehicle, other electronic devices, and social media accounts. The subsequent investigation, conducted by the PCSO and the United States Secret Service (USSS), confirmed that Andrews had groomed the 13-year-old victim, engaged in a sexual relationship with her, and also had her create sexually explicit images and videos of herself at his direction.
The investigation also found that Andrews sexually assaulted yet another minor female victim, who was just 11 years-old at the time of his arrest. Later, investigators were able to confirm that one of the CSAM videos found on Andrews’ devices depicted the same minor victim, but was recorded over a year ago, when she was only 10 years-old.
A review of the electronic evidence revealed that Andrews had engaged in overtly sexual online communications with numerous other young females, including minors. Several explicitly disclosed their age / minor status, while Andrews often lied about his own age, claiming he was 18. Andrews regularly attempted to convince the young females to meet him for sex or send him sexually explicit images or videos, and some did. Additionally, the forensic review of Andrews’ electronic devices found a voluminous collection of thousands of CSAM images and videos, as well as search history which confirmed that Andrews actively sought out CSAM.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Pender County Sheriff’s Office, the Vance County Sheriff’s Office, and the United States Secret Service investigated the case; the North Carolina 6th and 11th Prosecutorial District Attorney’s Offices prosecuted the state cases; and Assistant U.S. Attorney Bryan M. Stephany prosecuted the federal case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-cr-00112-M.
Pearsall Felon Sentenced to Prison for Dealing Fentanyl and Possessing a Stolen FirearmRead the Press Release
SAN ANTONIO – A Pearsall man was sentenced in a federal court in San Antonio to 24 years in prison for one count of felon in possession of a firearm and one count of conspiracy to possess with intent to distribute fentanyl.
According to court documents, Elberto Roy Trevino Jr. aka Lil Roy, 50, conspired with others to possess with intent to distribute fentanyl in July 2022. Specifically, on July 4, 2022, Trevino coordinated via text message to sell a substance to an individual. The individual believed they were purchasing cocaine from Trevino. Later that day, the individual was found deceased. From the scene, officers recovered loose powder and a rock-like substance that each tested positive for fentanyl, and another white powder that tested positive for cocaine.
On the same day, two other individuals were found deceased inside their Pearsall residence. Officers removed a bag that contained .21 grams of white powdery substance that tested positive for fentanyl.
On July 27, 2022, officers executed a search warrant at Trevino’s residence, recovering approximately 44.2 grams of 98% pure methamphetamine, 46.4 grams of a mixture of heroin and fentanyl, a bag containing miscellaneous ammunition, and a handgun that had been reported stolen out of San Antonio.
Trevino pleaded guilty on Aug. 30, 2023 to one count of felon in possession of a firearm and one count of conspiracy to possess with intent to distribute fentanyl. At the sentence hearing, U.S. District Judge Xavier Rodriguez sentenced Trevino to 120 months in prison for the felon in possession of a firearm charge, and 292 months for the conspiracy charge. Both penalties will run concurrently.
“Several people in the Pearsall community lost their lives over one Fourth of July weekend because of a single batch of fentanyl-laced cocaine,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “While the victims chose to engage in illicit drug use, had it not been for the miniscule amount of deadly fentanyl they ingested, they likely would still be alive today. This is a very dangerous poison that everyone must be cautious of, and, with the efforts of our partners, we will continue to disrupt the infiltration of fentanyl into our communities.”
"This case demonstrates the ongoing fentanyl threat facing our country today and the complete disregard for human lives,” said Special Agent in Charge Daniel C. Comeaux for the Drug Enforcement Administration Houston Division. “A batch laced with fake fentanyl instantly claimed the lives of four people, three of whom Trevino was responsible for. We understand this sentence won't be a closure for the families forever grieving these tragic losses. Still, we want this sentence to be a clear reminder to those who are thinking about selling fake fentanyl to realize there will be grave consequences awaiting."
The DEA, Pearsall Police Department and Bexar County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Amy Hail prosecuted the case.
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Owner of Suburban Chicago Insurance Agency Sentenced to Seven Years in Prison for Swindling More Than $1 Million from ClientsRead the Press Release
CHICAGO — The owner of a suburban Chicago insurance agency has been sentenced to seven years in federal prison for swindling more than $1 million from clients by collecting annuity premiums for policies that he never purchased.
DANIEL M. ROSENBAUM owned and operated Alexander & Rosenbaum Financial Group LLC, an insurance agency in Kenilworth, Ill. Beginning in 2016, Rosenbaum collected more than $1 million in annuity premiums from at least 18 clients, including friends and family members, for policies that he never purchased. Rosenbaum instead used the money for his own benefit, including spousal and child support payments, credit card payments, vehicle and other loan payments, and purchases at a jewelry store. Rosenbaum attempted to conceal the fraud by creating fake annuity documents and providing them to his clients. Some of the phony documents contained the logos of legitimate insurance companies that Rosenbaum had cut and pasted into the documents.
In addition to the annuity fraud scheme, Rosenbaum also engaged in fraud related to the federal Paycheck Protection Program (PPP), which was created by the CARES Act to cover lost revenue due to economic disruptions from the Covid-19 pandemic. Rosenbaum filed three fraudulent PPP loan applications in his name and, unbeknownst to them, the names of two close family members, for which he was paid a total of $53,537. Rosenbaum also fraudulently obtained $65,826 from the State of Illinois by filing two fraudulent applications for unemployment insurance benefits in his name and, unbeknownst to her, the name of a close family member.
Rosenbaum, 56, of Brown Deer, Wisc., pleaded guilty last year to a federal wire fraud charge. U.S. District Judge Manish S. Shah imposed the sentence Tuesday during a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The South Chicago Heights, Ill. Police Department provided valuable assistance.
“Not only was Rosenbaum stealing his clients’ money, but he was also leaving them without the annuity coverage they expected to have,” Assistant U.S. Attorney Prashant Kolluri argued in the government’s sentencing memorandum. “Without that coverage, a number of his clients suffered substantial financial hardship.”
Orlando Man Charged with Smuggling Firearms from the United States to CanadaRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Jonen Castillo (23, Orlando) with smuggling firearms from the United States to Canada. If convicted, Castillo faces a maximum penalty of 10 years in federal prison. The indictment also notifies Castillo that the United States intends to forfeit a Smith and Wesson firearm and four Glock firearms, which are alleged to be involved in the offense.
According to the indictment, between June 10 and June 29, 2023, Castillo concealed and attempted to export firearms from the United States to Canada, contrary to United States law and regulation.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Diane Hu.
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.
Operator of Durable Medical Equipment Companies Sentenced in Healthcare Kickback SchemeRead the Press Release
ATLANTA – Simon Orobor has been sentenced for conspiring to pay healthcare kickbacks payments for unnecessary durable medical equipment (DME), resulting in more than $20 million in claims to, and $13 million in payments from, Medicare.
“Telemedicine kickback schemes victimize elderly Medicare beneficiaries when they are most vulnerable,” said U.S. Attorney Ryan K. Buchanan. “Our office will continue to work closely with our federal partners to identify these deceitful practices, and to prosecute the criminals who employ these schemes at the expense of our citizens who rely on the Medicare program.”
“The FBI is determined to protect all tax paying citizens who are affected by these kickback schemes, especially those who need government assistance for their health care needs,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentencing is a step in the right direction to support our overall goal of stopping deceitful medical operators who steal and put tremendous pressure on our federally subsidized health care programs.”
“This sentence sends a strong message that HHS-OIG will thoroughly investigate those who exploit Medicare patients and pay illegal kickbacks to prescribe medically unnecessary durable medical equipment for illegitimate financial gain. Our commitment to safeguarding the integrity of the Medicare and other federal healthcare programs remains unwavering,” said Tamala Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (“HHS-OIG”).
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between at least June 2016 and February 2019, Simon Orobor owned and operated Devotion Medical Supply, Inc. (“Devotion”) and Durable Medical Supply, Inc. (“Durable”), which provided durable medical equipment such as knee, back, shoulder, and wrist braces. Orobor, though another entity called Digital Interventions, LLC, obtained access to thousands of Medicare beneficiaries by paying, on a weekly basis, kickbacks to Individual 1 and Company 1 in exchange for signed doctors’ orders for these braces. As part of the conspiracy, Medicare beneficiaries were contacted by call centers located in India, the Philippines, and elsewhere, which often obtained patient consent and sales through fraudulent means.
Orobor and Individual 1 disguised the nature and source of these kickbacks by designating the payments as marketing, entering into sham contracts, and generating or causing the generation of fraudulent invoices. In total, Orobor, through Devotion and Durable, used the doctors’ orders obtained through kickbacks to submit claims to Medicare in the approximate amount of $20,555,772 and received Medicare reimbursement in the approximate amount of $13,360,721.89.
Simon Orobor, 60, of Houston, Texas was sentenced to 30 months of incarceration, followed by three years of supervised release. Orobor was also ordered to pay $13,360,721.89 in restitution.
This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of Inspector General.
Assistant U.S. Attorney David A. O'Neal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Oklahoma Pharmacy Pays $140,000 to Settle Civil Penalty Claims Stemming from Allegations of Recordkeeping ViolationsRead the Press Release
Oklahoma City, Oklahoma – OU Medicine Inc. d/b/a OU Health (“OU Health”), paid $140,000 to settle civil penalty claims stemming from allegations it violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 (“Act”) and its regulations, announced United States Attorney Robert J. Troester.
OU Health has owned and operated the OU Health Pharmacy – OU Health Physicians Building (“Pharmacy”) located in Oklahoma City, Oklahoma, since July 16, 2022. The Pharmacy provides controlled substances to patients and in the past provided controlled substances to physician clinics within the OU Health system.
Recordkeeping is a vital part of managing controlled substances. Complete and accurate records help avoid diversions and losses of controlled drugs. The regulations implementing the Act require a registrant seeking to purchase Schedule II controlled substances to fill out the purchaser portion of a DEA Form-222, specify the descriptions and amounts of Schedule II substances being ordered, and provide the annotated form to the seller. The seller then must complete its portion of the DEA Form-222 at delivery, ensuring the substance identifications and quantities match those ordered. Failure to comply can result in civil monetary penalties.
The United States alleges that from November 16, 2020, through August 1, 2022, the Pharmacy accepted blank-signed DEA Form-222s from purchasers in violation of federal regulations. The Pharmacy, not the purchaser, entered on the forms the descriptions and amounts of Schedule II substances being ordered. To resolve these allegations, OU Health agreed to pay $140,000 to the United States.
In reaching this settlement, OU Health did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration, Office of Diversion Control. Assistant U.S. Attorneys Ronald R. Gallegos and Amanda R. Johnson prosecuted the case.
Oglala Man Found Not Guilty of Sexual AbuseRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that an Oglala, South Dakota, man was acquitted of three counts of Aggravated Sexual Abuse and Kidnapping following a federal jury trial in Rapid City, South Dakota, on February 9, 2024.
Drace Dreaming Bear, age 21, was indicted by a federal grand jury in March of 2023.
The investigation was conducted by the Oglala Sioux Tribe – Department of Public Safety. The U.S. Attorney's Office prosecuted the case.
New Braunfels Business Owner Sentenced to Federal Prison for Tax EvasionRead the Press Release
SAN ANTONIO – A New Braunfels woman was sentenced in a federal court in San Antonio to 18 months in prison for failure to account for and pay over withholding taxes.
According to court documents, Rachel Nicole Woolard, 50, owned and operated a healthcare staffing company called Reliance Therapy Staffing, LLC. From the first quarter of 2018 through the first quarter of 2020, she willfully failed to account for and pay over employment taxes for nine tax periods, resulting in a total tax loss of $924,752.76. At the sentence hearing, U.S. District Judge Xavier Rodriguez ordered Woolard to pay the full amount in restitution to the U.S. Treasury.
“This defendant largely ignored the financial accountability that comes with owning and operating a business,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “It is critical to understand, especially in the middle of tax season, your responsibility when it comes to paying taxes. If you choose to pocket taxes that you owe, our partners at IRS Criminal Investigation will uncover your fraud and we will hold you accountable with serious consequences.”
"Woolard made a conscious decision to evade paying nearly $1 million in taxes, enabling her to live a more lavish lifestyle. She knowingly engaged in illegal activity and now she must pay the price," said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s Houston Field Office. "This sentencing, occurring during tax season, emphasizes the dedication of CI and the U.S. Attorney’s Office to ensuring tax criminals are held accountable for their actions.”
IRS CI investigated the case.
Assistant U.S. Attorney William Harris prosecuted the case.
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Minnesota Man Sentenced to 25 Years in South Dakota Meth ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Minneapolis, Minnesota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on December 19, 2023.
Maureo Lemar Murdock, 30, was sentenced to 25 years in federal prison, followed by five years of supervised release. He was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Murdock was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in May of 2023. He pleaded guilty on August 23, 2023.
Murdock obtained methamphetamine from co-conspirators in California and then distributed that methamphetamine to customers in South Dakota. He was personally involved in the distribution of at least 500 grams or more of methamphetamine.
This case was investigated by the FBI, the Sioux Falls Police Department, and the Minnehaha County Sheriff’s Office. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Murdock was immediately remanded to the custody of the U.S. Marshals Service.
Michigan Man Arrested in West Virginia in Connection to Three Bank RobberiesRead the Press Release
DETROIT – A fugitive wanted in connection with bank robberies in Hamtramck, Harper Woods, and Hazel Park appeared in federal court this afternoon. Glenn Pack, 23, was arrested by the FBI on January 25, 2024, in West Virginia, and was returned to Michigan earlier this week to face charges, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan.
According to the criminal complaint, Pack is alleged to have robbed a PNC Bank on Joseph Campau Street in Hamtramck on December 19, 2023, a Chase Bank on Vernier Road in Harper Woods on January 2, 2024, and a PNC Bank on S. Chrysler Drive in Hazel Park on January 12, 2024. In all three robberies, Pack posed as a customer and presented the tellers with a note demanding money and stating that he was robbing the bank. Pack is alleged to have made off with over $10,000.
If convicted, Pack faces a maximum penalty of 20 years in prison for bank robbery. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“We are grateful for the swift action by the Hamtramck, Harper Woods, and Hazel Park Police Departments in coordinating with the FBI to identify and locate the defendant,” said Cheyvoryea Gibson, the Special Agent in Charge of the FBI in Michigan. “Each law enforcement partner brought a unique skill set which contributed to the successful apprehension by FBI Pittsburgh. The FBI remains committed to investigating thieves and protecting the public from this type of criminal activity.”
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In addition to the Detroit FBI, this case is being investigated by the Hazel Park Police Department, the Hamtramck Police Department, and Harper Woods Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Sarah Alsaden.
Member of Nisqually Tribe indicted for three counts of sexual abuse of a minorRead the Press Release
Tacoma – A 49-year-old member of the Nisqually Indian Tribe was indicted by the grand jury this week for three counts of aggravated sexual abuse of a minor, announced U.S. Attorney Tessa M. Gorman. Marcus Jerome Douglas was arrested on a criminal complaint on January 31, 2024. Douglas remains detained at the Federal Detention Center at SeaTac. He will be arraigned on the indictment next week.
According to records filed in the case, three victims have disclosed sexual abuse by Douglas at times when he had access to them. Some of the victims report long- time abuse from a very young age.
Because Douglas is a tribal member and the abuse occurred in residences on tribal land, the case is being investigated by the FBI and the jurisdiction is in federal court.
Sexual abuse of a minor is punishable by a mandatory minimum 30 years in prison to life in prison.
The FBI investigation is ongoing, and investigators are interested in speaking with any additional victims or witnesses who should call 1-800-CALL-FBI.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI with assistance from the Olympia Police Department.
The case is being prosecuted by Assistant United States Attorneys Cecelia Gregson and Kristine Foerster.
douglas_marcus_indictment.pdfMan Arrested After Standoff Left Three Officers ShotRead the Press Release
WASHINGTON – Stephen Claude Rattigan, also known as Julius James, 48, of Washington, D.C., has been charged with assault with intent to kill while armed, assault on a police officer while armed, and possession of a firearm during a crime of violence following the shooting of three Metropolitan Police Department officers and an hours-long standoff in Southeast DC. He is also being charged with misdemeanor cruelty to animals. The announcement was made by U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Rattigan made his initial appearance before Superior Court Magistrate Judge Renee Raymond today, where he was ordered held without bond pending a preliminary hearing on February 29, 2024 before Judge Maribeth Raffinan.
According to court documents, on February 14, 2024, officers from the Metropolitan Police Department responded to Rattigan’s residence in the 5000 block of Hanna Place Southeast to execute an arrest warrant because of a complaint of animal cruelty. That warrant stemmed from an incident in April 2023 in which Rattigan was captured by a security camera beating one of his dogs several times in the face. On January 12, 2024, an Animal Control Investigator visited the residence to address the issue of the number of animals on the property and the need for a permit. Previously on January 8, 2024, a Humane Society Officer visited Rattigan’s residence to address the issue of inhumane living conditions for the animals based on complaints received.
On the day of arrest, law enforcement officers approached Rattigan’s residence and identified themselves as police officers, in an attempt to arrest Rattigan on the outstanding arrest warrant. Upon law enforcement’s entry into the home, Rattigan opened fire, shooting and striking several officers. Rattigan barricaded himself inside the residence for more than 12 hours until he was taken into custody later in the day. After the arrest, authorities removed 31 dogs from his home. The law enforcement officers who were struck are all currently in stable condition.
This case is being investigated by the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney Matthew Goldstein.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Accused of Armed Robbery of Third Postal WorkerRead the Press Release
ST. LOUIS – Two men already facing an indictment accusing them of robbing two mail carriers at gunpoint in 2022 have been accused of a third robbery.
A superseding indictment in U.S. District Court in St. Louis Wednesday added charges against Roy Lee Jones, 21, and Xavier Sean Boyd, 20, of Jennings. The pair had been facing six felony counts: two counts of robbery, two counts of theft of a mail key and two counts of possession and brandishing a firearm in furtherance of a robbery. Wednesday’s indictment adds one count of each crime.
The indictment accuses the men of robbing two U.S. Postal Service letter carriers of their “arrow keys,” which open certain U.S. Postal Service collection boxes, at gunpoint on June 9, 2022, and Boyd, acting with another, of a June 1 robbery.
“Those who commit violent crimes against postal employees who provide a critical service to the public must be held accountable,” said Inspector in Charge Ruth Mendonça who leads the Chicago Division of the U.S. Postal Inspection Service, which includes the St. Louis Field Office. “This superseding indictment is a critical step toward ensuring that accountability.”
Each robbery charge is punishable by up to 25 years in prison. The theft charges are punishable by up to 10 years in prison. The firearm charges carry a penalty of at least seven years, consecutive to all other charges.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The U.S. Postal Inspection Service and the St. Louis County Police investigated the case. Assistant U.S. Attorney Jason Dunkel is prosecuting the case.
Louisville Man Sentenced to over 5 Years in Federal Prison for Illegally Possessing a Firearm and Money LaunderingRead the Press Release
Louisville, KY – A Louisville man was sentenced this week to 5 years and 3 months in federal prison for possessing a firearm after having previously been convicted of a felony offense and money laundering.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, Acting Special Agent in Charles Birch of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
According to court documents, Steven Meredith, 46, was sentenced to 5 years and 3 months in prison, followed by 3 years of supervised release, for possessing a firearm after having previously been convicted of a felony offense and for laundering monetary instruments by transferring $40,000 in checks and cash to purchase real property located on Woodruff Avenue in Louisville, knowing the funds involved the proceeds of dealing in controlled substances. Meredith was also ordered to pay a fine of $20,000.
Meredith was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses:
On December 19, 1996, in Jefferson Circuit Court, Meredith was convicted of burglary in the second degree and receiving stolen property over $300.
On August 25, 2010, in Jefferson Circuit Court, Meredith was convicted of complicity to receiving stolen property over $1000, trafficking in a controlled substance in the first degree and possession of a handgun by a convicted felon.
There is no parole in the federal system.
The case was investigated by the DEA and the IRS-CI, with assistance from the FBI Laboratory and IRS-CI Center for Science and Design.
Assistant U.S. Attorneys Robert Bonar and Amy Sullivan prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (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 www.justice.gov/OCDETF.
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Justice Department Sues Tennessee for Enforcing State Law that Discriminates Against People with HIVRead the Press Release
The Justice Department filed a lawsuit today against the State of Tennessee and the Tennessee Bureau of Investigation (TBI) for violating the Americans with Disabilities Act (ADA). The department previously notified Tennessee and the TBI that they violated the ADA by enforcing the state’s aggravated prostitution statute against people living with human immunodeficiency virus (HIV). That letter of findings detailed the minimum remedial measures necessary to address the discrimination.
“The enforcement of state criminal laws that treat people differently based on HIV status alone and that are not based on actual risks of harm, discriminate against people living with HIV,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “People living with HIV should not be subjected to a different system of justice based on outdated science and misguided assumptions. This lawsuit reflects the Justice Department’s commitment to ensuring that people living with HIV are not targeted because of their disability.”
The department’s investigation found that the state and TBI subject people living with HIV to harsher criminal penalties solely because of their HIV status, violating Title II of the ADA. Tennessee’s aggravated prostitution statute elevates what would otherwise be misdemeanor conduct to a felony because the individual has HIV, regardless of any actual risk of harm. A person convicted of aggravated prostitution faces three to 15 years in prison and a fine up to $10,000, while a person convicted of a misdemeanor charge based on the same conduct is subject to a penalty of no more than six months in prison and up to a $500 fine.
Aggravated prostitution is also categorized as a “violent sexual offense” mandating registration by those convicted on the Tennessee Sex Offender Registry, in most cases for life. The state maintains the registry through the TBI. Individuals placed on the registry due to convictions for aggravated prostitution are restricted in where they may live, work and go in public, and have experienced increased homelessness and unemployment. These individuals also face public disclosure of information about their HIV status, which can lead to harassment and discrimination. For example, the complaint identifies one person who has struggled to find safe housing that complies with the registry’s requirements and has experienced periods of homelessness, has been denied employment because she is on the registry, and is prevented from spending time alone with her nephew because of her conviction.
The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov.
Justice Department Conducts Court-Authorized Disruption of Botnet Controlled by the Russian Federation’s Main Intelligence Directorate of the General Staff (GRU)Read the Press Release
Note: Following the publication of this press release, the FBI and international partners issued a joint multinational cybersecurity advisory on Russian cyber actors' use of compromised routers to facilitate cyber operations.
A January 2024 court-authorized operation has neutralized a network of hundreds of small office/home office (SOHO) routers that GRU Military Unit 26165, also known as APT 28, Sofacy Group, Forest Blizzard, Pawn Storm, Fancy Bear, and Sednit, used to conceal and otherwise enable a variety of crimes. These crimes included vast spearphishing and similar credential harvesting campaigns against targets of intelligence interest to the Russian government, such as U.S. and foreign governments and military, security, and corporate organizations. In recent months, allegations of Unit 26165 activity of this type has been the subject of a private sector cybersecurity advisory and a Ukrainian government warning.
This botnet was distinct from prior GRU and Russian Federal Security Service (FSB) malware networks disrupted by the Department in that the GRU did not create it from scratch. Instead, the GRU relied on the “Moobot” malware, which is associated with a known criminal group. Non-GRU cybercriminals installed the Moobot malware on Ubiquiti Edge OS routers that still used publicly known default administrator passwords. GRU hackers then used the Moobot malware to install their own bespoke scripts and files that repurposed the botnet, turning it into a global cyber espionage platform.
The Department’s court-authorized operation leveraged the Moobot malware to copy and delete stolen and malicious data and files from compromised routers. Additionally, in order to neutralize the GRU’s access to the routers until victims can mitigate the compromise and reassert full control, the operation reversibly modified the routers’ firewall rules to block remote management access to the devices, and during the course of the operation, enabled temporary collection of non-content routing information that would expose GRU attempts to thwart the operation.
“The Justice Department is accelerating our efforts to disrupt the Russian government’s cyber campaigns against the United States and our allies, including Ukraine,” said Attorney General Merrick B. Garland. “In this case, Russian intelligence services turned to criminal groups to help them target home and office routers, but the Justice Department disabled their scheme. We will continue to disrupt and dismantle the Russian government’s malicious cyber tools that endanger the security of the United States and our allies.”
“For the second time in two months, we’ve disrupted state-sponsored hackers from launching cyber-attacks behind the cover of compromised U.S. routers,” said Deputy Attorney General Lisa Monaco. “We will continue to leverage all of our legal authorities to prevent harm and protect the public — whether the hackers are from Russia, China, or another global threat.”
“Russia’s GRU continues to maliciously target the United States through their botnet campaigns,” said FBI Director Christopher Wray. “The FBI utilized its technical capabilities to disrupt Russia’s access to hundreds of routers belonging to individuals in addition to small and home offices. This type of criminal behavior is simply unacceptable, and the FBI, in coordination with our federal and international partners, will not allow for any of Russia’s services to negatively impact the American people and our allies.”
“In this unique, two-for-one operation, the National Security Division and its partners disrupted a botnet used by both criminal and state-sponsored actors,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Notably, this represents the third time since Russia’s unjustified invasion of Ukraine that the Department has stripped the Russian intelligence services of a key tool used to further the Kremlin’s acts of aggression and other malicious activities. We will continue to use our legal authorities and cutting-edge techniques, and to draw on the strength of our partnerships, to protect the public and our allies from such threats.”
“This is yet another case of Russian military intelligence weaponizing common devices and technologies for that government’s malicious aims,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “As long as our nation-state adversaries continue to threaten U.S. national security in this way, we and our partners will use every tool available to disrupt their cyber thugs — whomever and wherever they are.”
“Operation Dying Ember was an international effort led by FBI Boston to remediate over a thousand compromised routers belonging to unsuspecting victims here in the United States, and around the world that were targeted by malicious, nation state actors in Russia to facilitate their strategic intelligence collection,” said Special Agent in Charge Jodi Cohen of the FBI Boston Field Office. “The FBI’s strong partnerships with the private sector were critical to identifying and addressing this threat which targeted our national security interests here and abroad. This operation should make it crystal clear to our adversaries that we will not allow anyone to exploit our technology and networks.”
As described in court documents, the government extensively tested the operation on the relevant Ubiquiti Edge OS routers. Other than stymieing the GRU’s ability to access to the routers, the operation did not impact the routers’ normal functionality or collect legitimate user content information. Additionally, the court-authorized steps to disconnect the routers from the Moobot network are temporary in nature; users can roll back the firewall rule changes by undertaking factory resets of their routers or by accessing their routers through their local network (e.g., via the routers’ web-based user interface). However, a factory reset that is not also accompanied by a change of the default administrator password will return the router to its default administrator credentials, leaving the router open to reinfection or similar compromises.
The FBI Philadelphia and Boston Field Offices and Cyber Division, U.S. Attorney’s Office for the Eastern District of Pennsylvania, and the National Security Division’s National Security Cyber Section led the disruption effort. The Criminal Division’s Computer Crime and Intellectual Property Section and Office of International Affairs, Shadowserver Foundation, Microsoft Threat Intelligence, and other partners provided valuable assistance.
The FBI is working with internet service providers to provide notice of the operation to owners and operators of SOHO routers covered by the court’s authorization. If you believe you have a compromised router, please visit the FBI’s Internet Crime Complaint Center.
To better protect themselves, the FBI advises all victims to conduct the following remediation steps:
- Perform a hardware factory reset to flush the file systems of malicious files;
- Upgrade to the latest firmware version;
- Change any default usernames and passwords; and
- Implement strategic firewall rules to prevent the unwanted exposure of remote management services.
The FBI strongly encourages router owners to avoid exposing their devices to the internet until they change the default passwords.
Jury Finds District Man Guilty of First Degree Murder While Armed in 2020 Shooting on Southern AvenueRead the Press Release
WASHINGTON – Today, a jury sitting in Superior Court found Terrell Poe, 37, of Washington, D.C., guilty of first-degree murder while armed, possession of a firearm during a crime of violence, and unlawful possession of a firearm, in the September 2020 shooting death of Christopher Washington. The verdict was announced by U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD). Superior Court Judge Michael O’Keefe scheduled sentencing for April 19, 2024.
According to the government’s evidence, at 2:24 p.m. in the afternoon on Wednesday, September 23, 2020, Christopher Washington, 30, of Washington, D.C., was waiting at the bus stop on Southern Avenue, SE when Poe pulled up in a stolen white pickup truck, got out of the truck with an assault rifle, and shot him to death. Just minutes earlier, in a local church parking lot, Poe had switched from his girlfriend’s car into the stolen pickup truck and gone looking for Mr. Washington. Poe passed Mr. Washington as he walked up Indian Head Highway in Maryland, then turned around and followed Mr. Washington, apparently losing sight of him, and then finding him again at the bus stop. After the murder, Poe returned to the church parking lot, dropped off the stolen truck and drove off in his girlfriend’s car.
Poe was arrested on October 5, 2020.
This case is being investigated by the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. It is being prosecuted by Assistant U.S. Attorneys Peter V. Roman and Wes Faulkner.
Indictment Charging Theft of a Vehicle in Yosemite National ParkRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Christian Claustro, 28, of Rancho Cucamonga, charging him with theft of personal property, unauthorized use of a motor vehicle and fleeing or eluding a police officer, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 26, 2022, Claustro stole a Yosemite National Park employee’s vehicle who had pulled over on the side of the road to remove a bike from the roadway. Claustro then led a park ranger in a high-speed chase. The pursuit reached the Ferguson Slide bridge, and Claustro drove the wrong way on to the bridge, colliding head on with another vehicle. The other vehicle was disabled by the amount of damage caused, but Claustro was able to continue driving until he drove the vehicle off a cliff, falling approximately 200 feet to the bottom of a canyon.
This case is the product of an investigation by the National Park Service. Assistant U.S. Attorney Robert Veneman-Hughes is prosecuting the case.
If convicted, Claustro faces up to five years in prison and a $250,000 fine for theft of personal property, up to five years in prison and a fine of up to $250,000 for destroying or removing property subject to seizure, and up to three years in prison and a fine of up to $10,000 for recklessly evading a peace officer. 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.
Husband and Wife Plead Guilty to $5 Million Unemployment Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – February 15, 2024
SAN DIEGO –Eduard Buse and Florentina Sima pleaded guilty in federal court today to fraud and money laundering charges, admitting they participated in a scheme to steal more than $5 million in California unemployment benefits intended to help workers affected by the pandemic.
Buse and Sima were indicted by a federal grand jury in October 2023 along with 12 others. The indictment alleged that the fraud scheme involved helping hundreds of undeserving applicants apply for benefits using fraudulent documents. In their respective plea agreements, Buse and Sima admitted the fraud resulted in almost $5.2 million in bogus claims paid by the state of California.
“These covid relief funds were meant to provide critical financial relief during the pandemic. Instead, the money was used to buy luxury cars and jewelry,” said U.S. Attorney Tara McGrath. “We will not only continue to prosecute those who diverted money intended to serve as a lifeline, but we will pursue every avenue to recover and return that money to public use.”
“The Covid-19 pandemic placed an enormous financial strain on millions of Americans; however, some individuals decided to use other people’s pain as an opportunity for financial gain,” said FBI San Diego Special Agent in Charge Stacey Moy. “Our pursuit of justice for those affected by fraud during the pandemic will not stop until each and every person who took advantage of individuals during this critical time is prosecuted for defrauding the U.S. government and innocent people.”
“The defendants’ abuse of programs designed to help people in need during and in the wake of the Covid pandemic is particularly despicable,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Even worse, they took money intended to help people keep their heads above water and showered themselves with luxury items. IRS Criminal Investigation is committed to rooting out this sort of evil by following the money to bring people like these defendants to justice.”
According to Buse’s plea agreement, he not only collected $28,350 in undue EDD benefits for himself but also facilitated payouts of $244,050 to 14 co-conspirators, including Sima. Buse then sent $128,902.99 and Sima sent $58,881.53 of fraud proceeds to their associates in Romania through money service businesses.
Buse admitted that he purchased a 2020 BMW X6 for $105,044 in Glendale, California, with proceeds from the fraud and shipped it from San Diego to Romania on April 28, 2023.
On November 13, 2023, Romanian authorities served search warrants on addresses affiliated with Buse at the request of the United States. They seized the BMW with California license plates along with approximately $9,476.50 in U.S. currency; a Rolex Yacht Master II and a rose gold luxury men’s watch purchased for $15,550 U.S. dollars; a Rolex Sky Dweller watch; a Breitling 1884 men’s watch; and a Rolex Oyster Perpetual Date women’s watch.
As part of their plea agreements, Buse and Sima agreed to forfeit the BMW, cash and luxury watches, along with all other property seized in connection with the case.
Buse also agreed to forfeit $128,902.99 and agreed to pay restitution in the amount of $244,050 to the State of California Employment Development Department. Sima agreed to forfeit $58,881.53 and pay the same amount in restitution to the State of California Employment Development Department.
Buse and Sima are scheduled to be sentenced on May 20, 2024, at 9 a.m. before U.S. District Judge Larry A. Burns. This case is being prosecuted by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie Chu.
DEFENDANTS Case Number 23CR2090-LAB
Eduard Buse Age: 30 Transient, Romanian
Florentina Sima Age: 29 Transient, Romanian
SUMMARY OF CHARGES
Title 18, U.S.C. § 1349 — Conspiracy to Commit Wire Fraud
Title 18, U.S.C. § 1343 — Wire Fraud
Maximum penalty: Thirty years in prison, $1 million fine
Title 18 U.S.C. § 1956(a)(2)(B)(i) — Laundering of Monetary Instruments
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater
AGENCY
Federal Bureau of Investigation
San Diego Police Department Economic Crimes Unit
IRS Criminal Investigation
California Employment Development Department Investigative Division
U.S. Department of Labor Office of Inspector General
U.S. Department of Homeland Security
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Huffman resident sent to prison for images of children being sexually assaultedRead the Press Release
HOUSTON – A 65-year-old man has been sentenced for receipt of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Steve Howie Nelson pleaded guilty Sept. 29, 2023.
U.S. District Judge Keith P. Ellison has now ordered Nelson to serve 180 months in federal prison. He will also 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. Nelson will also be ordered to register as a sex offender.
The investigation revealed Nelson had been viewing child pornography in a peer-to-peer platform. On Feb. 22, 2019, authorities executed a search warrant at his Huffman residence, at which time they found more than 25 images of child pornography on his laptop. These images depicted adult males sexually assaulting minor females from 10 to 14 years of age.
Nelson will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI conducted the investigation.
Assistant U.S. Attorneys Kimberly Leo and Jay Hileman 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 tab on that page.
Hudson Man Pleads Guilty to Fraudulently Obtaining COVID-19 Relief FundsRead the Press Release
CONCORD – A Hudson man pleaded guilty today in federal court to fraudulently submitting four loan applications to obtain CARES Act funds, U.S. Attorney Jane E. Young announces.
Matthew Dispensa, 57, pleaded guilty to three counts of bank fraud and one count of attempted wire fraud. U.S. District Court Judge Joseph N. Laplante scheduled sentencing for May 28, 2024. Dispensa was charged on April 26, 2023.
Dispensa fraudulently applied for multiple loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. For example, on May 5, 2020, the defendant applied for a $90,400 PPP loan from Primary Bank for an entity called Gateway Hills LLC. In connection with the application, the defendant provided the bank multiple false supporting documents, such as fake annual and quarterly tax documents and a “Management Report” for the period ending December 31, 2020, seven months into the future. The defendant also provided a “Payroll Summary” showing that he was paid $8,700 per month through Gateway Hills LLC. The defendant’s tax returns actually showed no income from that entity.
Similarly, on December 29, 2020, the defendant applied for a $150,000 EIDL from the Small Business Administration. In that application, the defendant falsely claimed that the Gateway Hills LLC entity had gross revenues of $485,000 in the 12 months preceding January 31, 2020. However, the bank records showed no actual regular business activity for Gateway Hills LLC.
Overall, the defendant fraudulently obtained $342,650 and attempted to fraudulently obtain $492,650.
The charge of bank fraud provides a sentence of no greater than 30 years in prison, 5 years of supervised release, and a fine of $1 million. The charge of attempted wire fraud provides a sentence of no more than 20 years in prison, 3 years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Treasury Inspector General for Tax Administration and U.S. Postal Inspection Service led the investigation. Valuable assistance was provided by the Hudson Police Department. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Hampton Man Pleads Guilty to Multiple Fraud Schemes Totaling over $2 Million and Will Forfeit More Than $800,000 to the United States GovernmentRead the Press Release
CONCORD – A Hampton man pleaded guilty today in federal court to four separate fraud schemes involving a total intended loss of approximately $2.1 million, U.S. Attorney Jane E. Young announces.
Anthony Silva, 39, pleaded guilty to three counts of wire fraud, one count of mail fraud, and one count of aggravated identity theft. As part of the plea agreement, Silva will forfeit assets totaling over $825,000 to the United States government. U.S. District Court Judge Samantha D. Elliott scheduled sentencing for May 2, 2024. The grand jury returned an initial indictment against the defendant on March 21, 2022, and a superseding indictment on December 20, 2023.
Silva orchestrated four separate fraud schemes using stolen identities. Specifically, Silva used stolen names, dates of birth, Social Security Numbers, and other identifiers to fraudulently obtain (1) unemployment insurance benefits from Vermont, (2) unemployment insurance benefits from Massachusetts, (3) American Express credit cards, and (4) CARES Act funds. The fraudulently obtained unemployment benefits and CARES Act funds were deposited either by check or direct deposit into dozens of accounts Silva controlled at multiple banks. Many of these accounts were in the names of individual victims or fictional organizations, with Silva listed as the trustee. Silva obtained more than $400,000 from Vermont, over $150,000 from Massachusetts, and $600,000 from the U.S. Small Business Administration. The fraudulently-obtained credit cards were used to make over $50,000 in purchases from retailers such as Victoria’s Secret and Walmart. Silva also tried unsuccessfully to obtain $1.35 million in CARES Act funding. The total intended loss was approximately $2.1 million.
The charge of wire fraud and mail fraud provides for a sentence of up to 20 years in prison and a fine of either $250,000 or twice the gross gain or loss, whichever is higher. The charge of aggravated identity theft provides for a mandatory sentence of 2 years to be served consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The U.S. Postal Inspection Service, Federal Bureau of Investigation, Department of Labor’s Office of the Inspector General, and the United States Secret Service led the investigation. Assistant U.S. Attorneys Alexander S. Chen and John J. Kennedy are prosecuting the case.
During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Grand Jury Returns Indictment Charging FBI Confidential Human Source with Felony False Statement and Obstruction CrimesRead the Press Release
Today, a federal court unsealed a two-count indictment returned by a federal grand jury in the Central District of California charging Alexander Smirnov, 43, with making a false statement, in violation of 18 U.S.C. § 1001, and creating a false and fictitious record, in violation of 18 U.S.C. § 1519, for statements he made that were recorded in an official record of the Federal Bureau of Investigation (FBI) known as a Form 1023.
David C. Weiss, Special Counsel, made the announcement.
On February 14, 2024, a federal grand jury returned the indictment and Smirnov was arrested at the Harry Reid International Airport in Las Vegas, Nevada, after his arrival in the U.S. from overseas. Later today, Smirnov will have an initial appearance at the federal courthouse in the District of Nevada at 2:30 p.m. pacific time.
According to the indictment, Smirnov was a confidential human source (CHS) with the FBI. As alleged in the indictment, despite repeated admonishments that he must provide truthful information to the FBI and that he must not fabricate evidence, Smirnov provided false derogatory information to the FBI about Public Official 1, and Businessperson 1, the son of Public Official 1, in 2020, after Public Official 1 became a presidential candidate.
The indictment alleges that in March 2017, Smirnov reported to an FBI Agent that he had had a phone call with the owner of Ukrainian industrial conglomerate Burisma Holdings, Limited concerning Burisma’s interest in acquiring a U.S. company and making an initial public offering (IPO) on a U.S.-based stock exchange. In reporting that conversation to the FBI Agent, Smirnov also noted that Businessperson 1, Public Official 1’s son, was a member of Burisma’s Board, a fact that was publicly known. The indictment alleges that Smirnov provided no further information.
Three years later, in June 2020, the indictment alleges that Smirnov reported, for the first time, two meetings in 2015 and/or 2016. As alleged in the indictment, Smirnov falsely claimed that during these meetings, executives associated with Burisma, admitted to him that they hired Businessperson 1 to “protect us, through his dad, from all kinds of problems,” and later that they had specifically paid $5 million each to Public Official 1 and Businessperson 1, when Public Official 1 was still in office, so that “[Businessperson 1] will take care of all those issues through his dad,” referring to a criminal investigation being conducted by the then-Ukrainian Prosecutor General into Burisma and to “deal with [the then-Ukrainian Prosecutor General].”
As alleged in the indictment, the events that Smirnov first reported to the FBI Agent in June 2020 were fabrications. In truth and fact, the defendant had contact with executives from Burisma in 2017, after the end of the administration when Public Official 1 had no ability to influence U.S. policy and after the Ukrainian Prosecutor General had been fired in February 2016. The indictment alleges that the defendant transformed his routine and unextraordinary business contacts with Burisma in 2017 and later into bribery allegations against Public Official 1 after expressing bias against Public Official 1 and his presidential candidacy.
As further alleged in the indictment, when he was interviewed by FBI agents in September 2023, Smirnov repeated some of his false claims, changed his story as to other of his claims, and promoted a new false narrative after he said he met with Russian officials.
If convicted, he faces a maximum penalty of 25 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Court documents and information for this case is located on the website of the District Court for the Central District of California or on PACER by searching for Case No. 2:24-cr-00091.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Four Accused of Nationwide Financial Scam Targeting ElderlyRead the Press Release
ST. LOUIS – Four men from California have been indicted in connection with a nationwide tech support fraud scam targeting the elderly.
Liang Jin, 24, of Walnut, Tsz Yin Kan, 41, of Chino Hills, and Kaiyu Wen, 25, of Irvine, were added Wednesday to an existing indictment against Yu-Chieh Huang, 22, of Chino Hills, filed in U.S. District Court in St. Louis last year. Jin, Wen and Huang face one felony count of conspiracy to commit mail, bank and wire fraud and multiple counts of wire fraud. Kan faces one felony count of conspiracy to commit mail, bank and wire fraud.
Huang has been in custody since August, when he was arrested after arriving to pick up $88,000 from an elderly Missouri couple and was accused of being a courier for the scammers, charging documents say. After investigators began seizing funds from bank accounts associated with Jin, he purchased a one-way flight to China, charging documents say. He was arrested at the airport before his flight. Kan has also been arrested. Wen is still being sought by authorities. Anyone with information is asked to call Homeland Security Investigations at 866-347-2423 or report tips online at ice.gov/tips.
“We’ve recently seen more scams employ couriers to pick up money from victims,” said U.S. Attorney Sayler A. Fleming. “This is just one of the warning signs of a scam. I strongly encourage people to be cautious when approached online or in person with demands for money and spread to the word to your friends and family to be vigilant about online scams.”
The investigation began in August, after a 78-year-old Missouri man responded to a pop-up message claiming his computer was infected with a virus. The victim and his 76-year-old wife were falsely told that their banking information had been compromised because someone had been accessing child pornography through the computer. To escape criminal prosecution, they were told they had to pay $88,000.
Scammers often initiate contact with phone calls, emails or pop-up messages on the target’s computer. They pretend to be tech support workers who will troubleshoot problems if given access to that computer or if paid a fee. Other times they claim the computer contains evidence of a crime and the victims will have to pay a fee to avoid prosecution.
Following instructions in a series of text messages, the Missouri couple gathered the money, took photos of it and sealed it in a cardboard box. They were told to wait for a courier but began to be suspicious and balked when the courier arrived. They called police, and the courier was arrested.
The man accused of being that courier, Yu-Chieh Huang, 22, was charged by complaint August 11 and indicted September 6. Charging documents say that he was paid $500 to $1,000 to pick up cash from victims and use a counterfeit passport and fraudulently obtained debit card to deposit it into a bank. He then withdrew money in cashier’s checks to send to co-conspirators, the charging documents say. Huang picked up $40,000 in Colorado and $40,000 in Oregon before coming to Missouri, the documents allege.
Huang, a college student from Taiwan, has pleaded not guilty.
Investigators then learned of the role of Jin, Wen and Kan, according to the criminal complaint and Wednesday’s indictment. Jin and Wen provided couriers with assignments and instructions, charging documents say, with Jin paying the courier salaries. Kan recruited college students to fraudulently open financial accounts using the names and passports of citizens of Taiwan, the charging documents say.
About $7 million in cashier’s checks were deposited into one bank account between March 2020 and July 2023, charging documents say, including a $170,000 check Kan deposited into a Missouri bank on June 29, 2022, the documents say. Huang conducted approximately $4 million in currency transactions during 2021 and Jin conducted over $5.7 million in currency transactions between June 2021 and September 2023.
Jin was admitted to the United States as a nonimmigrant student visa holder from China on Feb. 2, 2020, but is considered to have overstayed his visa.
Wen was admitted to the United States as a nonimmigrant student visa holder from China on March 6, 2020. He was terminated from the educational program when he failed to enroll and has overstayed his visa.
The indictment seeks the forfeiture of $6.8 million investigators identified in a series of financial accounts.
The conspiracy charge is punishable by up to 30 years in prison, a $1 million fine or both prison and a fine. Each wire fraud charge is punishable by up to 20 years in prison, a $250,000 fine or both. If convicted, restitution would be mandatory.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Homeland Security Investigations investigated the case. Assistant U.S. Attorneys Tracy Berry and Kyle Bateman are prosecuting the case.
Report cybercrime online at the Internet Crime Complaint Center at ic3.gov.
Former New York Construction and Remodeling Business Owner Sentenced to Two Years for Filing False Tax ReturnRead the Press Release
A South Carolina man was sentenced today to two years in prison for filing a false federal income tax return.
According to court documents and statements made in court, Timothy Blackman, of Daniel Island, was a self-employed contractor in Auburn, New York, providing construction and remodeling services. From 2007 through 2010, Blackman did not file income tax returns with the IRS or pay income taxes. After learning of a criminal investigation concerning his income taxes in June 2010, Blackman late-filed a false 2007 personal tax return, which underreported his construction and remodeling business’s total gross receipts and income.
In addition to the term of imprisonment, U.S. District Court Judge David Hurd for the Northern District of New York ordered Blackman to serve one year of supervised release.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Carla B. Freedman for the Northern District of New York made the announcement.
IRS Criminal Investigation investigated the case.
Acting Section Chief John N. Kane of the Justice Department’s Tax Division and Assistant U.S. Attorney Michael F. Perry for the Northern District of New York prosecuted the case.
Former New York Business Owner Sentenced to Prison for Tax FraudRead the Press Release
SYRACUSE, NEW YORK – Timothy Blackman, age 53, of Daniel Island, South Carolina, was sentenced today in federal court in Utica to 24 months in prison after previously pleading guilty to filing a false federal income tax return. United States Attorney Carla B. Freedman; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division (IRS-CI), New York Field Office, made the announcement.
In previously pleading guilty, Blackman admitted that while living in Auburn, New York, he was a self-employed contractor providing construction and remodeling services to customers. During the years 2007 through 2010, Blackman failed to file income tax returns with the IRS and failed to pay income taxes. After learning of an IRS criminal investigation in June 2010 concerning his income taxes, Blackman filed his 2007 individual tax return late, and willfully falsified that return by understating his true business receipts and total income from his construction and remodeling business. In addition to the term of imprisonment, United States District Judge David Hurd ordered Blackman to serve 1 year of supervised release and to pay restitution to the IRS in the amount of $42,121.
Blackman previously pled guilty to felony tax evasion in the Northern District of New York on March 19, 2004, for which he received a term of 15 months in prison.
IRS-CI investigated the case, which was prosecuted by Assistant United States Attorney Michael F. Perry and Acting Section Chief John N. Kane of the Justice Department’s Tax Division.
Former Illinois Department of Agriculture Investigator Sentenced to a Year in Prison for Obstructing JusticeRead the Press Release
CHICAGO — A former investigator for the Illinois Department of Agriculture has been sentenced to a year in federal prison for groping several women while on duty and then lying under oath about it during an official proceeding.
JOSE GUILLEN inappropriately touched and groped female operators of animal care facilities that he inspected for the State of Illinois. In his official capacity as a state investigator, Guillen had the power to influence whether an animal care facility received a license to operate and whether it could continue in operation after receiving the license.
When one of the victims filed a civil lawsuit against Guillen, he repeatedly lied under oath during a deposition in the case. In the deposition, Guillen stated that he touched the victim’s buttocks by accident. In a plea agreement with the U.S. Attorney’s Office to resolve the federal criminal case, Guillen admitted that he “intentionally touched [the victim’s] buttocks for purposes of his own sexual gratification.” Guillen also admitted in the plea agreement that he lied in his deposition when he denied having inappropriately touched four other animal care facility operators.
Guillen, 43, of Melrose Park, Ill., pleaded guilty last year to obstruction of justice. U.S. District Judge Joan Humphrey Lefkow imposed the year-and-a-day sentence during a hearing Wednesday in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.
“None of these women consented to the defendant’s lecherous advances,” Assistant U.S. Attorneys Amarjeet S. Bhachu and Diane MacArthur argued in the government’s sentencing memorandum. “It was only when confronted by a series of accusers who were brave enough to step forward to put a stop to his misconduct that the defendant capitulated and accepted responsibility for his serial wrongdoing by pleading guilty.”
Former Coffeewood Prison Guard Arrested on Federal Child Porn ChargeRead the Press Release
CHARLOTTESVILLE, Va. – A former prison officer at Coffeewood Correctional Center in Mitchells, Virginia was arrested today on federal charges related to his receipt and purchase of child pornography.
Davey Jonathan Sisk, 29, of Culpeper, Virginia, was arrested on a federal criminal complaint charging him with one count of receipt of child pornography.
According to court documents, an investigation conducted by the Homeland Security Investigations (HSI) revealed that from 2021 through 2022, a now-15-year-old minor living in Texas (MV1), and another minor engaged in sexual intercourse and then sold videos and images of these sexual encounters on the internet through various social applications, including Snapchat.
Specifically, it is alleged that Sisk, using the Snapchat username “JAKESMOOT2021,” paid approximately $465 through Cash App to MV1 in exchange for multiple sexually-explicit images and videos.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
Homeland Security Investigations - Washington D.C.’s Harrisonburg Field Office is investigating the case.
Assistant U.S. Attorney Sally J. Sullivan is prosecuting the case.
A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former CEO and CFO of Staffing Company Plead Guilty to Scheme to Defraud Bank and Investors That Caused $75 Million in LossesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty pleas today of LOUIS LLUBERES and MOISES LLUBERES for their roles in orchestrating a years-long scheme to fraudulently boost the revenues of their staffing company (“Company-1”). The scheme allowed Company-1 to fraudulently obtain hundreds of millions of dollars on its line of credit from a U.S. bank (“Bank-1”) and supported the sale of Company-1 to a group of investors (the “Investor Group”) at a grossly inflated price. LOUIS LLUBERES and MOISES LLUBERES pled guilty today to conspiracy commit bank fraud and conspiracy to commit wire fraud before U.S. District Judge Vernon S. Broderick.
U.S. Attorney Damian Williams said: “For many years, the defendants perpetrated a massive accounting fraud scheme in order to deceive their lenders and investors. In addition to causing more than $70 million in losses to victims, the defendants’ fraud jeopardized the livelihoods of hundreds of their employees. The defendants used accounting tricks, thinking their fraud would go undetected. They were wrong. Thanks to the tireless work of the FBI and the career prosecutors from my Office, the fraud was halted, the defendants’ assets were seized, and the defendants will face tough consequences for their criminal conduct.”
According to the charging documents and other filings and statements made in court:
LOUIS LLUBERES founded Company-1 in 1995 and served as Company-1’s Chief Executive Officer until March 2020. Company-1 served as a staffing company, supplying other businesses with temporary and permanent labor. MOISES LLUBERES, LOUIS LLUBERES’s brother, served as Company-1’s Chief Financial Officer.
Company-1 had established a revolving line of credit with Bank-1. Under the terms of the line of credit, Company-1 could only borrow up to a designated ratio of Company-1’s eligible accounts receivable (the “Borrowing Base”). By its terms, invoices that had gone more than 90 or 120 days without being paid were no longer eligible to be considered as part of Company-1’s Borrowing Base. Officials at Company-1 were required to submit weekly financial reports to Bank-1, which included information on Company-1’s sales and collections, among other items, that allowed Bank-1 representatives to calculate Company-1’s Borrowing Base.
Beginning in or about 2017, after losing significant business from major clients, the defendants began creating fraudulent invoices (the “Fictitious Receivables”). The Fictitious Receivables, which were recorded on Company-1’s books, created the appearance that Company-1 was engaged in more business and would be receiving more client payments than Company-1 did in reality. All told, the defendants created more than 2,000 such fraudulent invoices.
By inflating Company-1’s Borrowing Base through the creation of Fictitious Receivables, Company-1 and the defendants were able to borrow more than $500 million from Bank-1 through a revolving line of credit. Had Company-1 not deceived Bank-1 with the Fictitious Receivables, Company-1 would not have been entitled to borrow these funds under the terms of the line of credit.
In order to perpetuate their fraud, the defendants utilized two shell to disguise the loan proceeds before transferring those funds back to Company-1 and mischaracterizing the funds as client collection payments.
Once the misappropriated funds had been returned to Company-1’s collections account, they were applied to aging accounts receivable, including the Fictitious Receivables. This allowed Company-1 to maintain its Borrowing Base and continue borrowing from Bank-1 while artificially inflating Company-1’s revenues.
Beginning in or about 2017, the Investor Group initiated negotiations to acquire Company‑1, and the Investor Group executed an agreement to purchase Company-1 in May 2018. During those negotiations, LOUIS LLUBERES and MOISES LLUBERES actively concealed the fraud scheme, knowing that the fraud grossly inflated the value of Company-1.
LOUIS LLUBERES was paid approximately $11.3 million on the day the Investor Group acquired Company-1. LOUIS LLUBERES also received an additional approximately $6.2 million based, in part, on fraudulent representations to the Investor Group and Company-1. In total, LOUIS LLUBERES made at least $17.5 million from the sale of Company-1, and he transferred approximately $716,000 of those funds to MOISES LLUBERES.
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LOUIS LLUBERES, 61, of Windermere, Florida, and MOISES LLUBERES, 60, of Winter Grove, Florida, each pled guilty to one count of conspiracy to commit bank fraud, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison. Both defendants agreed to pay restitution jointly and severally in the amount of $75,460,611. LOUIS LLUBERES was further ordered to forfeit $75,460,611, and MOISES LLUBERES was ordered to forfeit $1,063,342.45. In addition, the defendants were ordered to forfeit properties in the U.S. and abroad.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas W. Chiuchiolo, Daniel G. Nessim, Rushmi Bhaskaran, and Kevin Mead are in charge of the prosecution.
Foreign National Pleads Guilty to Role in Cybercrime Schemes Involving Tens of Millions of Dollars in LossesRead the Press Release
A Ukrainian national pleaded guilty today to his role in two separate and wide-ranging malware schemes involving tens of millions of dollars in losses.
“Vyacheslav Igorevich 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 on May 9 and faces a maximum penalty of 20 years in prison for each count. A federal judge 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.
Florida conspirators sentenced to nearly five years in prison each for evading over $42 million in duties when illegally importing and selling plywoodRead the Press Release
MIAMI – A Florida husband and wife, Noel and Kelsy Hernandez Quintana were both sentenced yesterday to 57 months in prison for illegally importing and selling between $25 million and $65 million worth of plywood products in violation of the Lacey Act and customs laws. Their employee, Marta Angelbello, was also sentenced.
In addition to their prison sentences, the Quintanas were ordered to pay, jointly and severally, $42,417,318.50 in forfeitures, as well as $1,630,324.46 in storage costs incurred by the government when the Quintanas declined to abandon illegal wood seized by the government, thus forcing the government to maintain the wood in storage pending resolution of the case. The Quintanas were also ordered to serve three years of supervised release following their prison sentences, during which time they are prohibited in engaging in businesses regarding importing or exporting in products specifically protected under the Lacey Act.
Angelbello was sentenced to three years of probation to include 90 days in home detention and was ordered to pay a fine of $3,000.
“The enforcement of customs laws serves an integral part of U.S. foreign policy and trade policy,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “In this case, the defendants undermined U.S. policy by evading legally mandated customs duties on plywood manufactured in China using Russian timber. Moreover, by doing so, the defendants covered up their criminal scheme to violate federal environmental law, while also unjustly enriching themselves. This case shows the importance of prosecuting customs and environmental offenses.”
“Illegal timber trafficking has serious environmental effects. Also, accurate plant import declarations protect domestic producers from dumping by foreign countries and detect potential over-harvesting and trade in timber from high-risk sources,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This case clearly illustrates the ties between natural resource crime and customs laws, and is the result of excellent investigative work by customs officers, import specialists and Homeland Security Investigations.”
“Homeland Security Investigations is committed to pursuing individuals or entities that attempt to defraud the government of millions of dollars, violate U.S. Customs laws and undermine a fair marketplace for businesses,” said Special Agent in Charge Anthony Salisbury of the Homeland Security (HSI) Miami Field Office. “These types of criminal activities only serve to negatively impact the U.S. economy and we will continue to work with our federal law enforcement partners to combat this illicit activity.”
According to court filings, the Quintanas and Angelbello together engaged in a sophisticated scheme to evade antidumping and countervailing duties owed on hardwood plywood products made in China by falsely declaring the species, country of origin or country of harvest of the wood from which the plywood was made. At times they caused containers of plywood to be shipped from China to Malaysia or Sri Lanka, for example, where the wood was taken out of the original containers and put into a second set of containers to conceal the Chinese origin of the product.
The Quintanas incorporated seven companies in the United States – naming relatives or friends as corporate officers and agents – and used these shell companies to import hundreds of shipments of plywood products into the United States between February 2016 and December 2020. The Quintanas also incorporated a financial shell company through which they accepted payments from purchasers for the plywood they imported in violation of law, including the Lacey Act and customs laws.
When importing plant products, the Lacey Act requires filing a declaration which contains, among other things, the plant’s scientific name and its country of harvest. The Lacey Act makes it unlawful to transport or sell a plant product knowing it or the plant it was made from was transported in violation of any plant-related law. Customs laws prohibit false statements in any import declaration without reasonable cause to believe the truth of such statement. It is also illegal to import merchandise contrary to law, including the Lacey Act.
According to the Quintana’s October plea agreement, softwood plywood – regardless of country of export – carried a general duty of 8%, with a few duty-free exceptions, such as if the outer ply was made from Parana pine. Antidumping and countervailing duties of more than 200% applied to hardwood plywood manufactured in China after approximately April 2017.
Before April 2017, the Quintana’s importing shell companies imported containers of plywood into the United States and almost exclusively declared them to be hardwood plywood imported from China. But after April 2017, the companies evaded applicable duties by falsely declaring their hardwood plywood imports from China to be either the product of another country or to be made with a species of wood not subject to duties.
For example, a declaration from July 2018 said plywood in three containers was manufactured in Russia. But the containers were manufactured and loaded in Qingdao, China, and transported to Port Everglades, Florida, through the Panama Canal, without ever stopping in Russia. After federal authorities stopped such a shipment through Panama, the Quintanas used a different tactic to evade duties by shipping Chinese-produced hardwood plywood to Malaysia and transferring the wood to new containers to be shipped onward to the United States. This change of containers was intended to better conceal that the plywood originated from China.
The Quintana also falsely declared some shipments of softwood plywood to be duty-free Parana pine, which allowed them to evade the 8% general duty on these imports.
Additional court filings reflect that, after being alerted to the possibility of prosecution for their illegal acts, the Quintanas fled the United States initially to Panama and then to Montenegro where they were the subject of extradition proceedings.
The couple pleaded guilty to conspiring to import hardwood plywood in violation of the Lacey Act and customs laws and conspiring to sell the illegally imported plywood. Noel Quintana also pleaded guilty to one count of smuggling and one count of importing plant products without filing a declaration including the scientific name and name of the country from which the plants were taken. Kelsy Quintana also pleaded guilty to two counts of importing plant products without filing a declaration including the scientific name and name of the country where the plant was harvested.
HSI investigated the case with support from Customs and Border Protection, U.S. Fish and Wildlife Service and the Animal and Plant Health Investigation Service.
The U.S. Attorney’s Office for the Southern District of Florida and attorneys from the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Florida Conspirators Sentenced to Nearly Five Years in Prison Each for Evading over $42 Million in Duties When Illegally Importing and Selling PlywoodRead the Press Release
A Florida husband and wife, Noel and Kelsy Hernandez Quintana were both sentenced yesterday to 57 months in prison for illegally importing and selling between $25 million and $65 million worth of plywood products in violation of the Lacey Act and customs laws. Their employee, Marta Angelbello, was also sentenced.
In addition to their prison sentences, the Quintanas were ordered to pay, jointly and severally, $42,417,318.50 in forfeitures, as well as $1,630,324.46 in storage costs incurred by the government when the Quintanas declined to abandon illegal wood seized by the government, thus forcing the government to maintain the wood in storage pending resolution of the case. The Quintanas were also ordered to serve three years of supervised release following their prison sentences, during which time they are prohibited in engaging in businesses regarding importing or exporting in products specifically protected under the Lacey Act.
Angelbello was sentenced to three years of probation to include 90 days in home detention and was ordered to pay a fine of $3,000.
“Illegal timber trafficking has serious environmental effects. Also, accurate plant import declarations protect domestic producers from dumping by foreign countries and detect potential over-harvesting and trade in timber from high-risk sources,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This case clearly illustrates the ties between natural resource crime and customs laws, and is the result of excellent investigative work by customs officers, import specialists and Homeland Security Investigations.”
“The enforcement of customs laws serves an integral part of U.S. foreign policy and trade policy,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “In this case, the defendants undermined U.S. policy by evading legally mandated customs duties on plywood manufactured in China using Russian timber. Moreover, by doing so, the defendants covered up their criminal scheme to violate federal environmental law, while also unjustly enriching themselves. This case shows the importance of prosecuting customs and environmental offenses.”
“Homeland Security Investigations is committed to pursuing individuals or entities that attempt to defraud the government of millions of dollars, violate U.S. Customs laws and undermine a fair marketplace for businesses,” said Special Agent in Charge Anthony Salisbury of the Homeland Security (HSI) Miami Field Office. “These types of criminal activities only serve to negatively impact the U.S. economy and we will continue to work with our federal law enforcement partners to combat this illicit activity.”
According to court filings, the Quintanas and Angelbello together engaged in a sophisticated scheme to evade antidumping and countervailing duties owed on hardwood plywood products made in China by falsely declaring the species, country of origin or country of harvest of the wood from which the plywood was made. At times they caused containers of plywood to be shipped from China to Malaysia or Sri Lanka, for example, where the wood was taken out of the original containers and put into a second set of containers to conceal the Chinese origin of the product.
The Quintanas incorporated seven companies in the United States – naming relatives or friends as corporate officers and agents – and used these shell companies to import hundreds of shipments of plywood products into the United States between February 2016 and December 2020. The Quintanas also incorporated a financial shell company through which they accepted payments from purchasers for the plywood they imported in violation of law, including the Lacey Act and customs laws.
When importing plant products, the Lacey Act requires filing a declaration which contains, among other things, the plant’s scientific name and its country of harvest. The Lacey Act makes it unlawful to transport or sell a plant product knowing it or the plant it was made from was transported in violation of any plant-related law. Customs laws prohibit false statements in any import declaration without reasonable cause to believe the truth of such statement. It is also illegal to import merchandise contrary to law, including the Lacey Act.
According to the Quintana’s October plea agreement, softwood plywood – regardless of country of export – carried a general duty of 8%, with a few duty-free exceptions, such as if the outer ply was made from Parana pine. Antidumping and countervailing duties of more than 200% applied to hardwood plywood manufactured in China after approximately April 2017.
Before April 2017, the Quintana’s importing shell companies imported containers of plywood into the United States and almost exclusively declared them to be hardwood plywood imported from China. But after April 2017, the companies evaded applicable duties by falsely declaring their hardwood plywood imports from China to be either the product of another country or to be made with a species of wood not subject to duties.
For example, a declaration from July 2018 said plywood in three containers was manufactured in Russia. But the containers were manufactured and loaded in Qingdao, China, and transported to Port Everglades, Florida, through the Panama Canal, without ever stopping in Russia. After federal authorities stopped such a shipment through Panama, the Quintanas used a different tactic to evade duties by shipping Chinese-produced hardwood plywood to Malaysia and transferring the wood to new containers to be shipped onward to the United States. This change of containers was intended to better conceal that the plywood originated from China.
The Quintana also falsely declared some shipments of softwood plywood to be duty-free Parana pine, which allowed them to evade the 8% general duty on these imports.
Additional court filings reflect that, after being alerted to the possibility of prosecution for their illegal acts, the Quintanas fled the United States initially to Panama and then to Montenegro where they were the subject of extradition proceedings.
The couple pleaded guilty to conspiring to import hardwood plywood in violation of the Lacey Act and customs laws and conspiring to sell the illegally imported plywood. Noel Quintana also pleaded guilty to one count of smuggling and one count of importing plant products without filing a declaration including the scientific name and name of the country from which the plants were taken. Kelsy Quintana also pleaded guilty to two counts of importing plant products without filing a declaration including the scientific name and name of the country where the plant was harvested.
HSI investigated the case with support from Customs and Border Protection, U.S. Fish and Wildlife Service and the Animal and Plant Health Investigation Service.
Attorneys from the Environment and Natural Resources Division’s Environmental Crimes Section and the U.S. Attorney’s Office for the Southern District of Florida prosecuted the case.
Florida Business Owners Sentenced in Durable Medical Equipment Bribery SchemeRead the Press Release
ATLANTA - Brett Weiner and Valerie Desalvo have been sentenced on conspiracy charges for their role in buying and selling fraudulent doctors’ orders used to obtain over $1.5 million in fraudulent payments from Medicare.
“Thieves take advantage of telemedicine and use it as a platform to orchestrate their criminal schemes,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to prosecuting those who exploit our most vulnerable citizens and bilk the health care system in the name of personal greed.”
“Fraudulent schemes, such as what Weiner and DeSalvo participated in, corrupt medical decision making, drive up the cost of health care, and hurt every taxpayer in this country,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hopefully this lengthy sentence will send the message that the FBI makes it a priority to end people from abusing government funded programs like Medicaid.”
“Health care providers who cause the submission of Medicare claims for medically unnecessary equipment pose a significant risk to these programs and the patients who rely on them,” stated Special Agent in Charge Tamala E. Miles of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG works diligently with our law enforcement partners to hold accountable individuals who, to satisfy their own greed, exploit federal health care programs.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Brett Weiner and Valerie Desalvo owned and operated Laboratory Marketing Services, LLC (“LMS”), a business in Boca Raton, Florida. LMS was in the business of, among other things, receiving kickback payments in exchange for patient “leads,” consisting of billable Medicare beneficiaries. Weiner and Desalvo received bribes from DME companies such as Medihealth Medical Solutions, LLC, located in Amory, Mississippi, and Liberty Medical DME, LLC, in Atlanta, Georgia, in exchange for the leads, which included, among other information, each Medicare beneficiary’s name, Medicare number, diagnoses, pain level, and primary care physician.
Through LMS, Weiner and Desalvo also bought and sold signed physicians’ orders from Nagaindra Srivastav and his company B2B Apps Solutions, LLC, in Tampa, Florida, which they sold to DME companies. A substantial portion of the doctors’ orders that Weiner and Desalvo purchased from Srivastav and B2B contained signatures or purported approvals of physicians or other health care providers whose names and professional identifying information were used without their true authorization and prior knowledge.
In total, Weiner and Desalvo, through LMS, caused the submission of false and fraudulent claims to Medicare in the approximate amount of over $1,500,000, which generated approximately $715,000 in payment, for medical braces, including back, knee, and ankle braces, that were procured through the payment of illegal kickbacks and bribes and ineligible for Medicare reimbursement.
Brett Weiner, 61, of Boca Raton, Florida, and Valerie Desalvo, 58, of Boca Raton Florida, were each sentenced to three years, one month in prison, to be followed by three years of supervised release. Weiner and Desalvo were also ordered to pay $715,435.03 in restitution.
The following defendants were previously sentenced as part of the same conspiracy:
- Nagaindra Srivastav, 59, of Tampa, Florida, was sentenced to serve nine years in prison, followed by three years of supervised release, and ordered to pay $48,150,692.49 in restitution; and
- Brian Tisdale, 46, of Amory, Mississippi, was sentenced to serve three years, six months in prison, followed by three years of supervised release, and ordered to pay $4,675,093.80 in restitution.
This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of Inspector General.
Assistant U.S. Attorney David A. O’Neal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Five Individuals Sentenced to Federal Prison for Methamphetamine Trafficking and Money Laundering in the Fox ValleyRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 14, 2024, five individuals were sentenced by United States Senior District Court Judge William C. Griesbach for their involvement in a methamphetamine trafficking organization that operated in the Fox Valley area and elsewhere. The five individuals were sentenced as follows:
Defendant
Conviction(s)
Months of Prison
Mario Rodriguez Diaz (Age: 32), Moxee, Washington
Conspiracy to Distribute Methamphetamine
168
Luis R. Leon (Age: 29), Appleton, Wisconsin
Money Laundering
84
Rodrigo Diaz (Age: 27), Moxee, Washington
Conspiracy to Distribute Methamphetamine
80
Julio C. Vargas-Rodriguez (Age: 39), Appleton, Wisconsin
Conspiracy to Distribute Methamphetamine
72
Darius Robinson (Age: 28), Tacoma, Washington
Conspiracy to Distribute Methamphetamine
72
According to court documents, Mario Rodriguez Diaz, a Washington resident, was the leader of the drug trafficking organization. He obtained large quantities of methamphetamine from Mexico and paid couriers, including Darius Robinson, to distribute the methamphetamine throughout the United States. Rodriguez Diaz obtained and distributed several hundred pounds of methamphetamine from 2021 through 2022.
Court documents established that Luis Leon and Julio Cesar Vargas Rodriguez, who lived and operated in the Fox Valley area, frequently received large quantities of methamphetamine from Mario Rodriguez Diaz. Specifically, they received methamphetamine from a courier approximately 1-2 times per month and distributed over 3 pounds of methamphetamine per week.
Finally, court documents demonstrated that Rodrigo Diaz oversaw the organization’s finances and frequently traveled to Appleton, Wisconsin, to pick up cash that Luis Leon and Julio Cesar Vargas Rodriguez earned from methamphetamine distribution. Drug proceeds were also concealed in bank accounts of a Limited Liability Company (LLC) registered to Luis Leon.
The investigation resulted in the seizure of approximately $300,000 in cash, 125 pounds of methamphetamine, several vehicles, and dozens of firearms.
The defendants were charged based on a multi-year investigation led by law enforcement agents and officers from the Lake Winnebago Area Metropolitan Enforcement Group – Drug Unit (LWAM), the Drug Enforcement Administration (DEA) – Green Bay Resident Office, the DEA – Madison Resident Office, and the Internal Revenue Service (IRS) Criminal Investigation Division. Several other law enforcement agencies assisted with the investigation, including the DEA – Yakima Resident Office, the Appleton Police Department, the Outagamie County Sheriff’s Office, and the Wisconsin Department of Justice – Division of Criminal Investigation (DCI).
Assistant United States Attorney Alex Duros prosecuted the case.
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Firearms Purchaser Sentenced to 21 Months for Lying to Acquire a FirearmRead the Press Release
TUCSON, Ariz. – Javier Alejandro Ramos-Velderrain, 23, of Tucson, was sentenced last week by United States District Judge Scott H. Rash to 21 months in prison. On October 23, 2023, a jury convicted Ramos-Velderrain of Making a False Statement During the Purchase of a Firearm.
On November 4, 2020, U. S. Customs and Border Protection officers stopped Luis Manuel Bray-Vasquez as he attempted to enter the Republic of Mexico at the Mariposa Port of Entry in Nogales in an SUV. When told to turn off the engine, Bray-Vasquez, a U.S. Consulate employee, put the car in drive and attempted to flee into Mexico. Port officials were able to close the gates and stop the vehicle from escaping into Mexico and Bray-Vasquez was arrested. A search of the SUV revealed 15 firearms, including a Barrett BMG .50 caliber rifle, broken down and hidden in a blue bag. Bray-Vasquez was subsequently prosecuted and sentenced on August 24, 2021, by United States District Judge Jennifer G. Zipps, to 46 months in prison after he pleaded guilty to Smuggling Goods from the United States (CR-21-00655-TUC-JGZ).
Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began an investigation into the source of the 15 firearms and traced the 12 firearms that had serial numbers. Based on the tracing, ATF discovered that Javier Alejandro Ramos-Velderrain purchased the Barrett BMG .50 caliber firearm from 2A Ballistic Solutions, a federal firearms licensee (FFL), just 22 days prior to it being intercepted at the border. When he purchased the Barrett rifle, Ramos-Velderrain filled out and certified under penalty of perjury the ATF Form 4473, the Firearms Transaction Record, which records the identifying information of the buyer when purchasing a firearm from an FFL. At the time, Ramos-Velderrain knowingly listed a false address as his residence. This delayed the investigation, as agents were unable to locate Ramos-Velderrain. When agents found him, Ramos-Velderrain stated that he sold the firearm for $7,000 to a person who responded to an internet sale advertisement. He was unable to provide any information as to whom and when he allegedly sold the firearm. The Barrett BMG .50 caliber rifle is one of the most highly powered firearms that can be purchased outside of the military as it has massive destructive power.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and U.S. Customs and Border Protection conducted the investigation in this case. Assistant U.S. Attorneys Serra M. Tsethlikai and Evan N. Wesley, District of Arizona, Tucson, handled the prosecution. Assistant U.S. Attorney Angela W. Woolridge, District of Arizona, Tucson, handled the prosecution of Luis Manuel Bray-Vasquez.
CASE NUMBER: CR-21-03282-SHR
RELEASE NUMBER: 2024-018_Ramos-Velderrain# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Felon with Multiple Domestic Violence Convictions on His Record Sentenced to 15 Years in Federal Prison for Possessing AmmunitionRead the Press Release
LOS ANGELES – A San Bernardino man with multiple felony domestic violence convictions has been sentenced to 180 months in federal prison for unlawfully possessing ammunition – the fired cartridge cases of which law enforcement found in the man’s shared family home after he had fired them during a domestic dispute, the Justice Department announced today.
Frank Escobar, Jr., 35, was sentenced on Wednesday afternoon by United States District Judge Hernán D. Vera.
Escobar pleaded guilty in November 2023 to one count of being a felon in possession of ammunition. He has been in federal custody since August 2023.
In May 2023, Escobar knowingly possessed ammunition, specifically, three rounds of .25-caliber ammunition and four rounds of 12-gauge shotgun ammunition. Law enforcement found two of the .25-caliber rounds in the form of fired cartridge cases in Escobar’s shared family residence after he had fired the bullets during a domestic dispute. He was not permitted to possess the firearm and ammunition because of his criminal history, which includes four convictions for felony domestic violence.
“Firearm restrictions are particularly impactful and necessary for offenders like [Escobar] with a history of domestic violence,” prosecutors argued in a sentencing memorandum. “Possession of a firearm by an abuser significantly increases the risk of death for a victim of domestic violence…While in possession of a firearm that he was legally prohibited from possessing, [Escobar] fired the gun multiple times in close proximity to his family members inside their shared residence.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the San Bernardino Police Department investigated this matter.
Assistant United States Attorney Kelsey A. Stimson of the General Crimes Section prosecuted this case.
Federal Grand Jury Indicts Hickman Felon for Illegally Possessing a FirearmRead the Press Release
Paducah, KY – A federal grand jury in Paducah, Kentucky, returned an indictment on February 13, 2024, charging a Hickman man with possessing a firearm after being convicted of a felony.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Sheriff Chad Parker of the Fulton County Sheriff’s Office made the announcement.
According to the indictment, on November 1, 2023, Maurice Thorpe, 44, of Hickman, possessed a Jennings Firearm 9-millimeter pistol. Thorpe was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses:
On March 27, 1998, in Fulton Circuit Court, Thorpe was convicted of trafficking in cocaine.
On January 13, 2000, in Fulton Circuit Court, Thorpe was convicted of possession of cocaine.
On November 12, 2024, in Fulton Circuit Court, Thorpe was convicted of trafficking in marijuana over 8 ounces.
On October 26, 2005, in Calloway Circuit Court, Thorpe was convicted of trafficking in a controlled substance and first-degree fleeing or evading police.
On April 10, 2014, in Fulton Circuit Court, Thorpe was convicted of trafficking in a controlled substance – second or greater offense.
On May 25, 2017, in Fulton Circuit Court, Thorpe was convicted of second-degree criminal abuse.
Thorpe made his initial court appearance today before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. If convicted, Thorpe faces a maximum sentence of 15 years in prison. With three prior qualifying felony convictions, Thorpe could face no less than 15 years, and up to life, in federal prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. The Defendant remains in federal custody pending further court proceedings.
There is no parole in the federal system.
This case is being investigated by the ATF Paducah Post of Duty and the Fulton County Sheriff’s Office, with assistance from the Carlisle County Sheriff’s Office.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, is prosecuting this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Government Enters Agreement with Ashland Dermatology Practice to Ensure Effective Communication with Deaf and Hard of Hearing PatientsRead the Press Release
LEXINGTON, Ky. – The United States has reached an agreement, under the Americans with Disabilities Act (ADA), with Jack F. Ditty, M.D., P.S.C., a dermatology practice in Ashland, Kentucky, addressing effective communication with deaf and hard of hearing patients.
The settlement resolves a complaint filed by a patient who alleged that she was not provided an American Sign Language (ASL) interpreter during an initial appointment. Through an investigation, the United States determined that the dermatology practice failed to take necessary steps to ensure effective communication with deaf or hard of hearing patients, by not providing interpreters or other auxiliary aids and services to patients, who staff knew were deaf or hard of hearing, and encouraging those patients to bring someone with them to facilitate communication.
“Adequate communication with your health care provider is absolutely essential to receiving the medical care you need,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “This foundational access to communication is critically important and required by law. This settlement reflects our commitment to ensuring deaf and hard-of-hearing patients can properly participate in their important health care decisions, through essential access to adequate communication services.”
Under the terms of the agreement, the practice will advise patients and companions of their right to auxiliary aids and services to ensure effective communication, including a live qualified sign language interpreter, whether through video or on-site. The practice will maintain a list of qualified interpreters and establish internal procedures for ordering interpreting services. The practices will also modify its policies and practices to comply with the ADA, train its staff on the ADA and the terms of the agreement, and will periodically submit reports about its compliance with the agreement.
This matter was handled by Assistant U.S. Attorney Carrie Pond, in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
For more information on the Office’s civil rights efforts, please visit https://www.justice.gov/usao-edky/civil-rights. ADA complaints may be emailed to [email protected] or by contacting the U.S. Attorney's Office’s Civil Rights Hotline at (859) 685-4880.
More information about the ADA is available at the Justice Department’s toll-free ADA Information line at (800) 514 0301 or (800) 514 0383 (TTY) and on the ADA website at www.ada.gov.
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Fayette County Auto Dealer Sentenced to Prison for COVID-19 Relief FraudRead the Press Release
PITTSBURGH, Pa. – A resident of Fayette County, Pennsylvania, was sentenced in federal court on February 14, 2024, for conspiracy to commit mail and bank fraud, U.S. Attorney Eric G. Olshan announced today.
United States Senior District Judge Arthur J. Schwab sentenced Joshua DeWitt, 38, to ten months of imprisonment followed by two years of supervised release. DeWitt was also ordered to pay restitution in the total amount of $60,022.50.
According to information provided to the Court, DeWitt was the owner of RC Auto, a used car dealership in Fayette County. Along with his co-conspirator Terrence Newmeyer, DeWitt filed a series of fraudulent applications for Pandemic Unemployment Assistance benefits and Paycheck Protection Program (PPP) COVID-19 relief loans, including on behalf of customers, telling some that they were applying for funds that could be used to purchase a vehicle from the dealership. DeWitt and Newmeyer used the fraudulently obtained pandemic benefits for themselves and the dealership, by—among other things—accepting them as payment for vehicles and services sold.
Prior to imposing sentence, Judge Schwab stated that the fraud conspiracy lasted for many months and involved repeated instances of criminal activity.
Assistant United States Attorney Jeffrey Bengel prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Department of Labor Office of the Inspector General, Pennsylvania State Police, and Fayette County District Attorney’s Office for the investigation leading to the successful prosecution of DeWitt.
Newmeyer’s sentencing hearing currently is scheduled for March 5, 2024.
Enfield Man Pleads Guilty to Producing and Possessing Child Sex Abuse ImagesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Michael J. Krol, Special Agent in Charge of Homeland Security Investigations (HSI), New England, and Enfield Police Chief Alaric Fox today announced that KATRELL JOHNSON, 34, of Enfield, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to producing and possessing child sex abuse images and videos.
According to court documents and statements made in court, in April and May 2023, the National Center for Missing and Exploited Children (“NCMEC”) received CyberTipline reports from Google and WhatsApp that accounts, subsequently connected to Johnson, had been used to upload images and videos depicting the sexual abuse of children. A court-authorized search of two of Johnson’s Google accounts revealed hundreds of child sex abuse images and videos, including images and videos of prepubescent children, and images that Johnson created of two minor victims.
Johnson pleaded guilty to two counts of production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years on each count, and one count of possession of child pornography, an offense that carries a maximum term of imprisonment of 20 years. Judge Meyer scheduled sentencing for May 8.
Johnson has been detained since his arrest on July 13, 2023.
This matter is being investigated by Homeland Security Investigations (HSI) and the Enfield Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jessica Casey and Amanda Oakes.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Encino Tax Prep Company Owner Pleads Guilty to Helping Client File a False Tax Return and Admits Causing Tax Loss of More Than $400,000Read the Press Release
LOS ANGELES – The owner of an Encino tax preparation company pleaded guilty today to helping a client file a false individual tax return that deliberately underreported the client’s income, admitting that this and other false tax returns for the same the client caused a loss to the IRS of more than $400,000.
Bijan Kohanzad, 62, of Calabasas, pleaded guilty to one count of aiding and assisting the filing of a false tax return.
According to his plea agreement, beginning in mid-2015 and lasting until May 2017, Kohanzad helped and counseled a client to reduce the client’s taxable income. He did so illegally by falsely increasing the client’s business expenses reported on the client’s federal tax returns.
On the client’s corporate tax return for the year 2015, the client’s company claimed $150,000 in advertising expenses, a claim that Kohanzad knew was false. This false expense claim reduced the company’s ordinary business income from more than $326,000 to over $176,000, and fraudulently reduced the income the client would then report on his individual tax return.
In September 2016, Kohanzad also knowingly and willfully helped and advised the same client to file a false individual income tax return for the year 2015. On this return, the client failed to report the approximately $150,000 in concealed income that the client had received through his company. As a result, the client’s personal tax return falsely reported a taxable income of $127,878, when the actual amount exceeded $278,000.
For the tax year 2016, Kohanzad admitted that he again prepared and filed corporate and individual income tax returns for the same client that he knew were false. As with the false 2015 tax returns, the 2016 corporate tax return falsely claimed $886,325 in business expenses, which reduced the company’s reported ordinary business income, and fraudulently reduced the client’s taxable income as reported on his individual tax return from more than $1.3 million to less than $450,000.
The total loss Kohanzad caused to the IRS for these two tax years was approximately $401,436. Kohanzad admitted in his plea agreement that he acted willfully and that he voluntarily and intentionally violated federal law.
United States District Judge André Birotte Jr. scheduled a July 12 sentencing hearing, at which time Kohanzad will face a statutory maximum sentence of three years in federal prison. Kohanzad is free on $100,000 bond.
IRS Criminal Investigation is investigating this matter.
Assistant United States Attorney Monica E. Tait of the Major Frauds Section is prosecuting this case.
Eleven Individuals Indicted and Arrested for Drug Trafficking from Puerto Rico to the Continental United StatesRead the Press Release
SAN JUAN, Puerto Rico – On February 14, 2024, a federal grand jury returned a nine-count indictment charging 11 individuals for drug trafficking, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The United States Postal Inspection Service, U.S. Postal Service Office of Inspector General, and the Puerto Rico Police Bureau are investigating the case.
According to court documents, from April of 2019 and continuing up to and until September of 2022, the following defendants knowingly and intentionally, combined, conspired, and agreed with others, to knowingly and intentionally possess with intent to distribute and distribute cocaine using the U.S. Postal Service.
[1] Emmanuel A. Fernández García
[2] Edwin Orlando Carrasquillo
[3] Efraín Guillermo Vila Serrano
[4] Marymar Marrero Torres
[5] Pedro Benjamín Marrero Torres
[6] Arajulia Ramírez Del Valle
[7] Sebastián Restrepo Cano
[8] Luis Dejesus III
[9] Gadelys Rosario Alvarado
[10] Tyrone José Beltrán Lugo
[11] David Custodio Hernández
The defendants are facing a narcotics forfeiture allegation of $6,930,000.
“Drug trafficking poses a significant threat to public health and safety,” said United States Attorney Muldrow. “This criminal organization distributed cocaine into communities across the East Coast in various ways, including the mail. The U.S. Attorney’s Office and its partners will continue to pursue drug traffickers and to seek justice for our communities.”
“The arrests made today in Massachusetts, Florida, and Puerto Rico highlight the broad reach of the U.S. Postal Inspection Service when it comes to dismantling criminal drug trafficking organizations that pose a serious public safety threat,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “Postal inspectors aggressively seek to rid the mail of illicit narcotics, preserve the integrity of the mail and, most importantly, provide a safe environment for postal employees and Postal Service customers. I would like to commend the hard work and countless hours put forth by all the law enforcement agencies on this case. Together we will prevent these dangerous and addictive drugs from reaching our streets and ensure the perpetrators are brought to justice.”
The defendants arrested in Puerto Rico are scheduled for their initial court appearance today before U.S. Magistrate Judge Héctor Ramos-Vega of the U.S. District Court for the District of Puerto Rico. If convicted, the defendants face a mandatory minimum penalty of 10 years in prison for the conspiracy charged in count one of the indictment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney R. Vance Eaton is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Dominican Republic Man Sentenced to One Year on Illegally Reentery ConvictionRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Cristian Lopez-Moncion, 42, of the Dominican Republic, was sentenced by Chief District Judge Robert A. Molloy to one year of incarceration on his conviction of Illegal Reentry into the United States of a Removed Alien after pleading guilty on October 6, 2023.
According to court documents, on February 23, 2023, Lopez-Moncion was seen in the vicinity of Emile Griffith Ballpark in St. Thomas by an Immigration and Customs Enforcement Officer who was familiar with Lopez-Moncion and was aware of that he had been deported from the United States in 2019. Further investigation confirmed that the individual in question was, in fact, Lopez-Moncion. After his arrest on May 4, 2023, Lopez-Moncion admitted that he had been deported from the United States.
The case was investigated by United States Customs and Border Protection, Homeland Security Investigations and Department of Homeland Security Enforcement and Removal and was prosecuted by Assistant United States Attorney Evan Rikhye.