Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 4 January 2024
Jacksonville Man Who Led Police on High-Speed Chase Pleads Guilty to Escaping from Federal CustodyRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces that Michael A. Crider (43, Jacksonville) has pleaded guilty to escape from custody. Crider faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to court documents, in 2018, Crider was adjudicated guilty and sentenced to 80 months in federal prison for possessing a firearm as a convicted felon. In January 2023, while Crider was completing that prison term, the Bureau of Prisons transferred him into the custody of Bridges Federal Reintegration Centers – Jacksonville, a residential reentry center or halfway house. While in custody there, he was subject to drug testing, and on the evening of April 11, 2023, he was provided a copy of an incident report documenting a recent positive test for cocaine. Later, around midnight, a halfway house staff member noticed that Crider was not in his assigned dormitory. Searching the facility, the staff could not find him.
A month later, on May 13, 2023, at approximately 6:00 a.m., in St. Augustine, Florida, a police officer observed a minivan, which Crider was driving, traveling at over 100 mph, running red traffic lights, and weaving in and out of traffic. The officer attempted to conduct a traffic stop, but Crider refused to pull over, and a chase ensued. Crider eventually crashed the minivan and was arrested.
At the crash scene, the police officer smelled marijuana coming from the minivan. Crider initially refused to identify himself, but eventually stated that he knew that there was a warrant for his arrest. In the backseat of the minivan, police found a backpack, which contained several documents bearing Crider’s name, a scale, and a dose of Buprenorphine 8mg, a synthetic opioid and Schedule III controlled substance.
This case was investigated by the U.S. Marshals Service and the Saint Johns County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Illegally Armed Serial Bank Robber Sentenced to 22 ½ Years in Federal PrisonRead the Press Release
INDIANAPOLIS- Gary Sistrunk, 42, of Indianapolis, has been sentenced to 22.5 years in federal prison after pleading guilty to armed bank robbery, brandishing a firearm during a crime of violence, and illegally possessing a firearm as a convicted felon.
According to court documents, on November 6, 2019, Gary Sistrunk and an unknown male entered the German American Bank in Columbus, Indiana. After waiting for customers to clear out of the bank, Sistrunk began walking around the bank’s lobby acting as a lookout, while his accomplice approached the register. The men demanded money from the teller and were given $10,293 in cash. The robbers forced the bank tellers and a lone customer into a back room, threatening them not to move for 15 minutes or else they would be killed.
On January 28, 2020, Sistrunk entered a Regions Bank in Fishers, Indiana, acting alone. Sistrunk approached the teller counter and brandished a black and silver handgun, leaned into the teller’s window space, and said, “Hurry and don’t make any noise. Give me the money!” The teller complied and gave Sistrunk $10,327.00 in cash. Sistrunk took the money and fled the bank.
The following day, Fishers Police Department released a photo and surveillance footage of the robbery to local media outlets. The Department received two tips identifying Sistrunk as the robber. At the time of the robbery, Sistrunk also had an outstanding Marion County warrant for armed robbery and confinement.
On January 29, 2020, Sistrunk was arrested on the outstanding Marion County warrant. During the court-authorized search of the hotel room he was living in, investigators located his black and silver Springfield Arms handgun, the clothing Sistrunk wore when he committed the robbery on January 28, 2020, and approximately $4,000 cash. Sistrunk is prohibited from ever possessing a firearm under federal law because he is a convicted felon. Sistrunk was convicted in Marion and Shelby counties of charges including armed robbery, attempted armed robbery, and criminal confinement for his role in four separate robberies in 2012 and 2014.
“This criminal has engaged in a pattern of violence throughout his life,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Several years in prison for prior armed robberies did not convince him to change his behavior. The sentence imposed here should serve as a warning to repeat, violent offenders—reducing violence is a top priority for this office, and repeat offenders face lengthy terms in federal prison. I commend the FBI and Fishers Police Department, and our federal prosecutor, for their work to quickly arrest the defendant and hold him accountable.”
The FBI and Fishers Police Department investigated this case. The sentence was imposed by Chief U.S. District Court Judge Tanya Walton Pratt. Judge Pratt also ordered that Sistrunk be supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Corbin D. Houston, who prosecuted this case.
###
Houston, Texas, Resident Pleads Guilty to Violating Federal Money Laundering LawsRead the Press Release
PITTSBURGH, PA – A resident of Houston, Texas, pleaded guilty in federal court to violating federal money laundering laws, United States Attorney Eric G. Olshan announced today.
Oluseyi Jeremiah Olagoke Adebayo, 48, of Houston, Texas, pleaded guilty to one count of conspiracy to commit money laundering from June 2022 through October 2022 before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that a company located in the Western District of Pennsylvania was the victim of a business email compromise that resulted in the fraudulent transfer of over $420,000 into a bank account that Adebayo opened with a false name and a fraudulent Solomon Islands passport. To obfuscate the source of the fraudulent funds, Adebayo incorporated shell companies with false names and opened bank accounts for those shell companies also with false names. He then transferred portions of the fraudulent funds obtained from the victim company into those bank accounts from which he conducted additional transfers and issued bank checks.
Judge Colville scheduled sentencing for May 7, 2024. The law provides for a maximum total sentence of not more than 20 years, a fine not to exceed $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Adebayo remains detained pending sentencing.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Homeland Security Investigations conducted the investigation leading to the prosecution of Adebayo.
Fugitive Leonard Francis Back in San Diego; Appears in Federal CourtRead the Press Release
NEWS RELEASE SUMMARY – January 4, 2024
SAN DIEGO – Leonard Glenn Francis, the infamous fugitive who presided over a massive decade-long conspiracy involving scores of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and gifts, appeared in federal court today for the first time since he cut off his electronic monitoring bracelet and absconded from house arrest in San Diego in September 2022.
At the hearing, the government asked U.S. District Judge Janis L. Sammartino to set a new sentencing date immediately to avoid delays, but the judge postponed a decision based on a request by Francis’ legal team to withdraw from the case in the aftermath of his disappearance. The judge set a status hearing for February 8, 2024, at 9 a.m.
Francis, who fled the United States before he could be sentenced, was returned to the United States from Venezuela as part of a prisoner swap on December 20, 2023. From Venezuela, he arrived in the Southern District of Florida and appeared in federal court the next day in Miami, where he was ordered removed to the Southern District of California. Francis arrived in San Diego on January 3.
Francis, the owner and chief executive of Glenn Defense Marine Asia, which provided services to U.S. Navy ships in ports in the Asia-Pacific region, pleaded guilty to bribery and fraud charges in 2015. As a result of the federal investigation, more than 30 U.S. Navy officials and associates pleaded guilty.
“Leonard Francis is no longer on the run. He is on the hook,” said U.S. Attorney Tara K. McGrath. “Mr. Francis never should have fled the United States while he was waiting to be sentenced. In fact, he was ordered by a federal judge not to do so. Now that he is back in San Diego, Mr. Francis will be held fully accountable for his crimes.”
DEFENDANTS Case Number 13-CR- 4287
Leonard Glenn Francis Age: 59 Singapore
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371. Maximum penalty five years in prison, $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater;
Bribery, in violation of 18 U.S.C. § 201. Maximum 15 years in prison, $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater. Mandatory restitution.
Conspiracy to Defraud the United States, in violation of in violation of 18 U.S.C. sec. 371. Maximum penalty five years in prison $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater. Mandatory restitution.
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Fort Wayne Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE –Kevieun D. Lewis, 35 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to possessing with intent to deliver fentanyl and possessing a firearm in furtherance of a drug trafficking crime, announced United States Attorney Clifford D. Johnson.
Lewis was sentenced to 180 months in prison followed by 5 years of supervised release.
According to documents in the case, on March 29, 2023, a search warrant was executed at Lewis’s residence after controlled buys of fentanyl were conducted. During the search, officers found numerous baggies containing fentanyl, cocaine, MDMA, and marijuana. Officers also located digital scales, a firearm, ammunition, and a substantial amount of U.S. currency. Lewis has six prior adult felony convictions.
This case was investigated by the FBI, with assistance from Fort Wayne Police Department, Drug Enforcement Administration Laboratory, and the Allen County Prosecutor’s Office. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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.
Former Stoneham Police Officer Sentenced for Defrauding Three LandlordsRead the Press Release
BOSTON – A former detective sergeant for the Stoneham Police Department was sentenced today for concealing his history of evictions and using a family member’s credit report to obtain an apartment lease and then defrauding his landlord by intentionally withholding rent payments.
Robert Kennedy, 54, of Stoneham, was sentenced by U.S. District Court Judge Denise J. Casper to two years of probation, with the first 90 days to be served under home confinement with electronic monitoring. Kennedy was also ordered to pay restitution of $14,275. In September 2023, Kennedy pleaded guilty to two counts of wire fraud.
“Today's sentence should send a clear message: no one is above the law. We remain steadfast in our commitment to hold accountable those who exploit their positions and engage in fraudulent activities that compromise the very principles they are sworn to uphold,” said Acting United States Attorney Joshua S. Levy.
“Former Stoneham Police Department Detective Robert Kennedy broke laws he was sworn to enforce, and in doing so, failed his department, and betrayed the trust of three landlords whom he lied to and defrauded. In no uncertain terms, today’s sentence demonstrates that no one is above the law,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “This case also highlights the FBI’s ongoing commitment to root out and bring to justice anyone who deliberately compromises the integrity of their position for personal gain.”
From February 2020 through June 2023, Kennedy lied to and defrauded three separate landlords to obtain apartments that he had no intention of paying for. After moving in, Kennedy would intentionally withhold rent payments, despite making $141,000 - $187,000 a year from the Stoneham Police Department. As a result, Kennedy lived in the apartments rent-free by taking advantage of the slow eviction process.
Specifically, Kennedy defrauded his most recent landlord by submitting materially false and fraudulent information during the rental application process. The landlord required Kennedy to submit to a tenant screening service, which included a credit check and eviction history check. Instead of providing his own date of birth and social security number to the tenant screening service – which would likely have shown Kennedy’s history of collections, delinquent payments, defaults and evictions – Kennedy provided the date of birth and Social Security number of a relative who shared his first and last name. The landlord relied on the information from the fraudulently obtained tenant screening report to approve Kennedy’s rental application and give Kennedy a lease for the apartment. Additionally, Kennedy immediately and intentionally violated the terms of the lease by giving the landlord bad checks for his rent and security deposit and failing to make subsequent rent payments. Kennedy lived in the apartment for approximately four months without making rent payments and currently owes the landlord approximately $14,000 in overdue rent.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made announcement today. Valuable assistance was provided by the Stoneham Police Department. Assistant U.S. Attorneys Elysa Q. Wan and Dustin Chao of the Public Corruption & Special Prosecutions Unit prosecuted the case.
Florida Research Hospital Agrees to Pay More than $19.5 Million to Resolve Liability Relating to Self-Disclosure of Improper Billing for Clinical Trial CostsRead the Press Release
H. Lee Moffitt Cancer Center & Research Institute Hospital Inc. (Moffitt), a non-profit cancer treatment and research center based in Tampa, Florida, has agreed to pay $19,564,743 to resolve its civil liability under the False Claims Act for improper claims submitted to federal healthcare programs for certain patient care items and services provided during research studies that were not eligible for reimbursement. In connection with the settlement, the United States acknowledged that Moffitt took a number of significant steps entitling it to credit for cooperating with the government.
This settlement resolves Moffitt’s civil liability for claims that it submitted to Medicare and other federal healthcare programs during the period from 2014 to 2020 for services that were not reimbursable under Centers for Medicare and Medicaid Services rules governing reimbursement for clinical care provided in connection with clinical research trials. Specifically, Moffitt billed federal healthcare programs for items and services provided as part of clinical trial research that should have been billed to non-government trial sponsors. After learning of these issues, Moffitt initiated an independent investigation and compliance review and voluntarily provided the government with a written disclosure of its findings. Moffitt cooperated fully with the government’s investigation of the conduct and implemented prompt and substantial remedial measures. The federal share of the settlement is approximately $18.2 million and the state Medicaid share of the settlement is approximately $1.3 million.
“Healthcare providers participating in federal healthcare programs must ensure that they comply with applicable rules and regulations, including those relating to the submission of claims in connection with clinical research,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As today’s settlement reflects, when providers run afoul of their obligations, they can mitigate the consequences by making timely self-disclosures, cooperating with investigations and taking appropriate remedial measures.”
“Protecting the nation’s healthcare programs is a top priority of our office,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “When those who receive funds from government healthcare programs discover that they have submitted improper claims, we encourage them to promptly disclose the issues and cooperate fully with investigators to reach an appropriate and swift settlement. That’s what Moffitt did here: self-reported its improper claims, cooperated with government investigators and took action to remediate its billing systems.”
“Providers participating in clinical trials funded by federal health care programs must abide by specific guidelines that safeguard these programs,” said Acting Special Agent in Charge Fernando Porras of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Providers will be held accountable if they bill for services outside the rules governing reimbursement. Together, with our law enforcement partners, we will continue to maintain the fiscal integrity of federal healthcare programs.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Middle District of Florida and HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Gary Dyal of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorneys Randy Harwell and Carolyn Tapie for the Middle District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementFlorida Research Hospital Agrees to Pay More Than $19.5 Million to Resolve Liability Relating to Self-Disclosure of Improper Billing for Clinical Trial CostsRead the Press Release
H. Lee Moffitt Cancer Center & Research Institute Hospital Inc. (Moffitt), a non-profit cancer treatment and research center based in Tampa, Florida, has agreed to pay $19,564,743 to resolve its civil liability under the False Claims Act for improper claims submitted to federal healthcare programs for certain patient care items and services provided during research studies that were not eligible for reimbursement. In connection with the settlement, the United States acknowledged that Moffitt took a number of significant steps entitling it to credit for cooperating with the government.
This settlement resolves Moffitt’s civil liability for claims that it submitted to Medicare and other federal healthcare programs during the period from 2014 to 2020 for services that were not reimbursable under Centers for Medicare and Medicaid Services rules governing reimbursement for clinical care provided in connection with clinical research trials. Specifically, Moffitt billed federal healthcare programs for items and services provided as part of clinical trial research that should have been billed to non-government trial sponsors. After learning of these issues, Moffitt initiated an independent investigation and compliance review and voluntarily provided the government with a written disclosure of its findings. Moffitt cooperated fully with the government’s investigation of the conduct and implemented prompt and substantial remedial measures. The federal share of the settlement is approximately $18.2 million and the state Medicaid share of the settlement is approximately $1.3 million.
“Healthcare providers participating in federal healthcare programs must ensure that they comply with applicable rules and regulations, including those relating to the submission of claims in connection with clinical research,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As today’s settlement reflects, when providers run afoul of their obligations, they can mitigate the consequences by making timely self-disclosures, cooperating with investigations and taking appropriate remedial measures.”
“Protecting the nation’s healthcare programs is a top priority of our office,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “When those who receive funds from government healthcare programs discover that they have submitted improper claims, we encourage them to promptly disclose the issues and cooperate fully with investigators to reach an appropriate and swift settlement. That’s what Moffitt did here: self-reported its improper claims, cooperated with government investigators and took action to remediate its billing systems.”
“Providers participating in clinical trials funded by federal health care programs must abide by specific guidelines that safeguard these programs,” said Acting Special Agent in Charge Fernando Porras of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Providers will be held accountable if they bill for services outside the rules governing reimbursement. Together, with our law enforcement partners, we will continue to maintain the fiscal integrity of federal healthcare programs.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Middle District of Florida and HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Gary Dyal of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorneys Randy Harwell and Carolyn Tapie for the Middle District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Florida Man Is Sentenced for Money Laundering Stemming from A Business Email Compromise SchemeRead the Press Release
CHARLOTTE, N.C. – Pierre Yvelt Almonor, 51, of Miami Gardens, Florida, was sentenced today to 51 months in prison followed by two years of supervised release for his role in a conspiracy to launder illegal proceeds from a business email compromise scheme that defrauded law firms and other companies of more than $1 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
A business email compromise scheme, or BEC, is a sophisticated scam, often targeting businesses involved in wire transfer payments. The fraud is carried out by fraudsters compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company or other individuals involved in legitimate business transactions to transfer funds to accounts controlled by the scammers.
According to filed court documents, trial evidence, and witness testimony, from August 2014 through November 2017, as part of the money laundering conspiracy, Almonor arranged to have nearly $395,000 in real estate closing proceeds stolen through a BEC deposited in a business account over which he exercised control, utilizing it as a “money mule” bank account. Money mule bank accounts are accounts used by fraudsters as a pass-through means of moving fraudulently obtained funds. Almonor then facilitated wires to Spain and South Africa totaling more than $200,000 and withdrew more than $50,000 in proceeds as compensation for his role in the conspiracy.
In May 2022, a federal jury convicted Almonor of engaging in a conspiracy to commit concealment money laundering, international concealment money laundering, and transactional money laundering.
Almonor will be ordered to report to the federal Bureau of Prisons to begin serving his sentence, upon designation of a federal facility.
The FBI investigated the case. Assistant U.S. Attorneys Matthew T. Warren and Maria Vento of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Federal Jury Convicts Indiana Man of Distribution and Transportation of Child Pornography and Making Notice of Visual Depictions of Minors Engaging in Sexually Explicit ConductRead the Press Release
ASHEVILLE, N.C. – A federal jury in Asheville has convicted Brandon Keith Hardy, 44, of Bremen, Indiana, of distribution and transportation of child pornography, and making notice of visual depictions of minors engaging in sexually explicit conduct, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, joins U.S. Attorney King in making today’s announcement.
“Hardy’s conviction reflects the important work we do every day to keep children safe and prosecute those who seek to harm them. Child predators using anonymous online networks and encryption walls to exploit children and evade justice will not deter our mission,” said U.S. Attorney King.
“Protecting children from predators that seek to exploit them is one of the most important missions for HSI,” Special Agent in Charge Martinez. “We are fully committed to working with our law enforcement partners to identify, investigate and prosecute these individuals for their heinous crimes.”
According to filed court documents, trial evidence, and witness testimony, law enforcement determined that an individual later identified as Hardy was using chatrooms on the dark web to traffic child sexual abuse material and to solicit sexual activity with a minor. Trial evidence established that over the course of the investigation Hardy used the dark web and an encrypted text messaging platform to share dark web links to child pornography with undercover law enforcement. Evidence presented at trial also established that Hardy possessed a collection of child pornography on his phone, expressed his interest in engaging in sexual activity with a child, and said he had sexually abused other children.Hardy is currently in federal custody. A sentencing date has not been set. The charge of transportation of child pornography and distribution of child pornography each carry a minimum statutory sentence of five years and a maximum of 20 years in prison and a $250,000 fine. The notice of child pornography charge carries a mandatory minimum sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine.
In making today’s announcement, U.S. Attorney King commended HSI for their investigation of the case.
The U.S. Attorney’s Office in Asheville is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Erie Man Sentenced to Seven Years in Prison on Narcotics and Firearms ChargesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to seven (7) years in prison on his conviction of violating federal firearm and drug laws, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Aaron Jovan Raiford, 42.
According to information presented to the court, on or about March 25, 2022, Raiford possessed with intent to distribute cocaine, and he possessed three firearms and ammunition while being a convicted felon. In addition, on August 2, 2022, Raiford again possessed cocaine with the intent to distribute it. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
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.
Assistant United States Attorney Molly W. Anglin prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Raiford.
East Longmeadow Man Sentenced for Marijuana TraffickingRead the Press Release
BOSTON – An East Longmeadow man was sentenced today in federal court in Springfield for marijuana trafficking.
John Americo Pereira, 38, was sentenced by U.S. District Court Judge Mark G. Mastroianni to six months in prison and three years of supervised release. In June 2023, Pereira pleaded guilty to one count of possession with intent to distribute more than 100 kilograms of marijuana.
In January 2018, an investigation began into Pereira, and others, for trafficking marijuana. During a search of Pereira’s home in February 2019, approximately $688,000 in drug proceeds and more than 269 pounds (122 kilograms) of marijuana packaged in one-pound bags were found. Also found at Pereia’s residence were several smaller or partially filled packages and containers of marijuana, marijuana cigarettes and a large amount of marijuana edibles, including 876 chocolate bars.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Office and the Criminal Division’s Organized Crime and Gang Section of the Department of Justice prosecuted the case.
Eagle Butte Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced an Eagle Butte, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on January 3, 2024.
Jeremiah Iron Moccasin, age 39, was sentenced to 13 months in federal prison, followed by three years of supervised release, a special assessment to the Federal Crime Victims Fund in the amount of $100, and forfeiture of the firearm.
Iron Moccasin was indicted by a federal grand jury in July of 2023. He pleaded guilty on October 2, 2023.
The conviction stemmed from an incident on March 24, 2023, when Iron Moccasin was placed under arrest on a tribal warrant with the Cheyenne River Sioux Tribe Law Enforcement Services. Once at the jail, Iron Moccasin and his backpack were searched. Officers recovered a small baggie of methamphetamine, two syringes with methamphetamine, and an Arminius HW7, GmbH .22 revolver. Iron Moccasin admitted to being a methamphetamine user for the last several years. This makes him a prohibited person.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges prosecuted 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.
Iron Moccasin was immediately remanded to the custody of the U.S. Marshals Service.
Darien Man Sentenced to 2 Years for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Arron W. Dupler, 34, Darien, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 2 years in prison for possessing a firearm as a felon. Dupler’s federal sentence will run consecutive to two undischarged state sentences. He pleaded guilty to the federal charge on November 1, 2023.
Law enforcement began investigating Dupler after receiving information that he was posting pictures of guns on Facebook and offering the guns for sale. On March 4, 2022, Dupler sold an undercover police officer a Ruger LCP .380 handgun. Dupler showed the officer pictures of additional guns that he had previously sold and said he could get more. Dupler is prohibited from possessing firearms as a result of two felony convictions from 2007 and 2018.
At sentencing, Judge Conley said that the most disturbing part of Dupler’s offense was his comment to the undercover officer that the gun had “no bodies” on it, and that only five rounds had been fired from the gun. Judge Conley noted that these attributes would make the gun harder to trace, should it be used in criminal activity.
The charge against Dupler was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Janesville Police Department, and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorneys Anita Marie Boor and Megan Stelljes prosecuted this case.
Cumberland Woman Sentenced to Prison for Embezzling Funds from St. Croix Chippewa Indians of WisconsinRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Karen Johnson, 55, Cumberland, Wisconsin was sentenced today by U.S. District Judge William M. Conley to one year and one day in prison for wire fraud, to be followed by a three-year period of supervised release. Johnson pleaded guilty to this charge on September 1, 2023.
Between 2014 and 2019, Johnson stole over $200,000 from the St. Croix Chippewa Housing Authority, an agency of the St. Croix Chippewa Indians of Wisconsin. This agency is responsible for providing and maintaining housing for low-income tribal members. The Housing Authority receives in excess of $1 million each year in grant funding from the U.S. Department of Housing and Urban Development. Johnson, who had worked for the Housing Authority since 1995, used her position to write checks for personal expenses. This included a scheme to defraud in which she generated and approved false invoices billing the Housing Authority for work purportedly done by a contractor. Johnson then wrote checks drawn on Housing Authority funds, forged the contractor’s signature, and deposited the checks into her own bank account.
At sentencing, Judge Conley found that Johnson’s conduct was serious because she took advantage of her position within the Housing Authority and deprived other tribal members of financial support. Judge Conley stated a custodial sentence was also warranted due to the length of time Johnson stole funds from the Housing Authority.
The charges against Johnson were the result of an investigation conducted by the U.S. Department of Housing and Urban Development’s Office of Inspector General. Assistant U.S. Attorney Taylor L. Kraus prosecuted this case.
Crown Point Woman Sentenced to 46 Months in Prison and Ordered to Repay RestitutionRead the Press Release
HAMMOND – Lorraine Duchscher, 50 years old, of Crown Point, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to three counts of wire fraud.
Duchscher was sentenced to 46 months in prison followed by 2 years of supervised release and was ordered to pay $490,958.35 in restitution to the victim of the offense.
According to documents in the case, between March 2017 and December 2019, Duchscher worked as an office manager for a company in Crown Point. In this capacity, she had unsupervised access to the company’s bank account, financial records and payroll information. For almost three years, Duchscher made regular adjustments to her paychecks and gave herself additional pay to which she was not entitled. She also wrote over 100 unauthorized business checks to herself and another employee, which were cashed at local banks and currency exchanges. Over the course of the scheme, Duchscher defrauded the company out of $490,958.35; money she used to fund her lavish lifestyle which included the purchase of airline tickets, rental cars, vacation home rentals, entertainment, and cosmetic procedures, among other things.
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Jennifer Chang and Steven J. Lupa.
Cincinnati Man Sentenced to 210 Months for Drug Trafficking ConspiracyRead the Press Release
COVINGTON, Ky. – A Cincinnati man, Carlos Edward Thurman, Jr., 40, was sentenced on Thursday, to 210 months in federal prison, by U.S. District Judge David L. Bunning, for conspiracy to distribute and possession with intent to distribute methamphetamine, heroin, and cocaine.
According to court documents, from May 1, 2020 through June 2, 2021, Thurman conspired with his co-defendants, to distribute and possess with intent to distribute 50 grams or more of methamphetamine, heroin, and cocaine. Law enforcement made several controlled purchases from Thurman and his co-defendants and found two firearms and more than $17,000 in cash from residences connected to Thurman.
Thurman had previously been convicted in July 2016 of Trafficking in Heroin in Hamilton County, Ohio.
Under federal law, Thurman must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 10 years.
Thurman’s co-defendants, Mario Renard Baker, 44, Edward Allen Mashburn Jr., 49, Maurice Lamont Raysor, 45, Romeo Jawan Richardson, 33, and Antoine Martez Williams, 38, have pleaded guilty and are awaiting sentencing.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. Assistant U.S. Attorney Tony Bracke is prosecuting the case on behalf of the United States.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
— END —
ChristianaCare Pays $42.5 Million to Resolve Health Care Fraud AllegationsRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that ChristianaCare has paid $42.5 million to resolve allegations of health care fraud arising under the federal False Claims Act and the Delaware False Claims and Reporting Act. ChristianaCare operates three hospitals and numerous other healthcare facilities in northern Delaware and the surrounding area. The settlement amount has been allocated between the United States and the State of Delaware based on the value of the underlying healthcare claims.
In a complaint filed under the whistleblower provisions of the False Claims Act in 2017, ChristianaCare’s former chief compliance officer alleged that ChristianaCare had provided illegal remuneration to non-employee neonatologists and surgeons in the form of services from ancillary support providers (including nurse practitioners, hospitalists, and physician assistants) to inpatients at ChristianaCare hospitals. The lawsuit alleged that the services of the ancillary support providers impermissibly sought to induce those neonatologists and surgeons to refer their patients to ChristianaCare hospitals and created financial relationships between the non-employee providers and ChristianaCare. As a result, the complaint alleged, ChristianaCare’s claims to government-funded healthcare programs, including Medicare and Medicaid, for the care it provided to the referred patients during their hospitalization violated the federal Anti-Kickback Statute and the physician self-referral law, also known as the Stark Law. In 2020, after the conduct at issue in this case, the federal Centers for Medicare and Medicaid Services issued additional guidance, clarifying the billing and patient-referral rules surrounding services provided by hospitals during inpatient stays.
“The prohibitions on kickbacks and self-referrals in federal healthcare programs are designed to ensure that the medical decisions of healthcare providers are driven by what is in the best interest of patient care, not provider profit,” said U.S. Attorney Weiss. “That is true regardless of who provides the care, whether it is a solo practitioner or the largest healthcare system. My office will continue to vigorously enforce these prohibitions so that Delawareans can receive the care that is appropriate to their medical needs.”
A whistleblower suit, or qui tam action, under the False Claims Act, is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the local U.S. Attorney. The United States then has an opportunity to investigate the claims. The False Claims Act provides the whistleblower with a share of the government’s recovery.
The claims resolved by the settlement are allegations only and there has been no determination of liability. Assistant U.S. Attorney Dylan J. Steinberg represented the United States in this matter.
Related court documents and information from the civil lawsuit are on PACER by searching for Case No. 1:17-cv-419-RGA.
California Man Pleads Guilty to Tax FraudRead the Press Release
A California man pleaded guilty today to conspiring to file false claims against the United States.
According to court documents and statements made in court, from 2016 to 2020, Richard Jason Mountford conspired with another individual to submit false individual income tax returns seeking refunds to which they were not entitled. Mountford and his co-conspirator filed income tax returns in their own names, as well as in the names of two other unwitting individuals, that falsely reported they were employed by a company, received wages from that company, and had federal taxes withheld from those wages, fraudulently claiming a refund was due. Most of the returns filed as part of the scheme also falsely reported alimony payments to increase the refund amount.
Based on these fraudulent returns, the IRS issued $873,723.53 in unwarranted refunds to the co-conspirators. Mountford deposited $757,075.53 of these fraud proceeds into his own bank accounts and subsequently purchased nearly $360,000 worth of new cars. He also distributed to his co-conspirator about $170,000 in cash and gold bars for his role in the scheme.
Mountford is scheduled to be sentenced by Judge Troy L. Nunley for the Eastern District of Califonia on April 11, and faces a maximum penalty of 10 years in prison. He also faces a period of supervised release, restitution and monetary penalties. Judge Nunley will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Phillip A. Talbert for the Eastern District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys John C. Gerardi and Charles A. O’Reilly of the Tax Division and Assistant U.S. Attorney Dhruv M. Sharma for the Eastern District of California are prosecuting the case.
California Man Pleads Guilty to Tax FraudRead the Press Release
SACRAMENTO, Calif. — Richard Jason Mountford, formerly of Monterey County, pleaded guilty today to conspiring to file false claims against the United States, U.S. Attorney Phillip A. Talbert and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced.
“The U.S. Attorney’s Office is committed to investigating and prosecuting tax fraud,” said U.S. Attorney Talbert. “Fraudulent tax preparation schemes utilizing false and inflated deductions cost the government millions of dollars each year.”
“Mr. Mountford defrauded the U.S. government and every American taxpayer through this selfish scheme,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Our CI special agents are the best in the world at following the money to find evidence for conviction, a lesson Mr. Mountford learned the hard way.”
According to court documents, from 2016 to 2020, Mountford conspired with another individual to submit false individual income tax returns seeking refunds to which they were not entitled. Mountford and his co-conspirator filed income tax returns in their own names, as well as in the names of two other unwitting individuals, that falsely reported they were employed by a company, received wages from that company, and had federal taxes withheld from those wages, fraudulently claiming a refund was due. Most of the returns filed as part of the scheme also falsely reported alimony payments in an effort to increase the refund amount.
Based on these fraudulent returns, the IRS issued $873,723 in unwarranted refunds to the co-conspirators. Mountford deposited $757,075 of these fraud proceeds into his own bank accounts and subsequently purchased nearly $360,000 worth of new cars. He also distributed to his co-conspirator about $170,000 in cash and gold bars for his role in the scheme.
This case is the product of an investigation by IRS Criminal Investigation. Trial Attorneys John C. Gerardi and Charles A. O’Reilly of the Tax Division and Assistant U.S. Attorney Dhruv M. Sharma are prosecuting the case.
Mountford is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on April 11, 2024. Mountford faces a maximum statutory penalty of 10 years in prison. The actual sentence, however, will 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.
California Man Indicted for Shipping Methamphetamine to the Capital Region and Selling FentanylRead the Press Release
ALBANY, NEW YORK –Michael Laudicina, age 46, of Santa Cruz, California, was arraigned today on an indictment charging him with distributing a controlled substance.
United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA) New York Division; and Saratoga County Sheriff Michael Zurlo made the announcement.
The indictment alleges that Laudicina shipped at least 50 grams of methamphetamine to New York on three occasions, once each in July 2022, August 2022 and November 2022. On a fourth occasion, in August 2022, Laudicina sold fentanyl. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Laudicina carry a term of imprisonment at least 10 years and up to life; a fine of up to $10 million; and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Laudicina was arraigned today in Albany, before United States Magistrate Judge Christian F. Hummel, and ordered detained pending a trial before Senior United States District Judge Gary L Sharpe.
The DEA and Saratoga County Sheriff’s Office are investigating the case. Assistant U.S. Attorneys Jonathan S. Reiner and Ashlyn Miranda are prosecuting the case.
California Man Accused of Defrauding the Federal Government over $100,000 in Unemployment Benefits During COVID-19Read the Press Release
SALT LAKE CITY, Utah – An indictment was unsealed after a California man was arrested and is scheduled to appear in a Salt Lake City federal courthouse. The eight count indictment charges the defendant for unlawfully collecting unemployment insurance during COVID-19 from California while living and working in Utah. He also allegedly assisted others in committing the same acts for a cut of their unemployment insurance funds administered under the CARES Act.
According to court documents, Robert James Waff, 49, of Sacramento, CA, allegedly submitted an online application for unemployment insurance (UI) benefits on June 19, 2020, through the California Employment Development Department (EDD) website, while he was a resident of Clearfield, Utah. Waff listed his residence and mailing address as Fair Oaks, CA. Waff also claimed he had lost employment due to COVID-19 and that before losing employment his annual income was $44,000, and that he planned to return to work for his previous employer. Waff’s fraudulent California EDD application and continued renewal of his California EDD benefits resulted in Waff receiving over $36,000 in fraudulent payments.
Beginning in July 2020, Waff also allegedly helped three coconspirators apply for COVID-19 related California unemployment benefits through the California EDD website. None of the applicants lived or worked in the state of California. In return, Waff requested a cash payout from each applicant as compensation for assisting with the false application. As a result of the fraudulent filings, the actual loss resulting from fraudulent UI benefit claims exceeded $100,000.
Waff is charged with one count of wire fraud, three counts of wire fraud aiding and abetting, and four counts of mail fraud aiding and abetting. His initial court appearance on the indictment is scheduled for Jan. 5, 2024, at 1:00 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated jointly by the FBI Salt Lake City Division and the U.S. Department of Labor, Office of Inspector General (OIG).
Assistant United States Attorney Brian Williams of the District of Utah is prosecuting the case.
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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Butler Resident Sentenced to Prison for Possession of a Stolen, Loaded FirearmRead the Press Release
PITTSBURGH, PA – A resident of Butler, PA, has been sentenced in federal court to a total term of 66 months (5 ½ years) in prison, followed by three (3) years of supervised release, in connection with his possession of a stolen, loaded firearm and for committing that offense while serving a period of supervised release on his prior federal drug-trafficking conviction, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Charles Perkins, age 29.
According to information presented to the court, on February 1, 2023, the Butler County Anti-Drug Task Force obtained a search warrant for Perkins and an apartment associated with him. Upon approaching Perkins outside the residence, he ran from law enforcement and threw a loaded handgun. Perkins fell and was arrested. An examination of the handgun revealed that it had been reported stolen. Judge Conti previously sentenced Perkins to 15 months’ imprisonment and three years of supervised release for his last federal offense, possession with intent to distribute quantities of fentanyl and crack. He was serving his supervised release at the time he committed the firearm offense.
Prior to imposing sentence, Judge Conti revoked Perkins’ federal supervised release and sentenced him to six (6) months in prison for his prior drug offense, to be served consecutively to the five-year term of imprisonment for the new firearm offense.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Butler County Anti-Drug Task Force for the investigation leading to the successful prosecution of Perkins.
Bulgarian National Arrested for Assaulting ICE Deportation OfficerRead the Press Release
NEWARK, N.J. – A Bulgarian national was arrested for assaulting a U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) deportation officer, U.S. Attorney Philip R. Sellinger announced.
Vasil Petrov, 40, of Bulgaria, is charged by complaint with one count of assaulting a federal officer. Petrov appeared today before U.S. Magistrate Judge Edward S. Kiel in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On Dec. 27, 2023, Petrov was in the lawful custody of ICE officers at an ICE facility in Elizabeth, New Jersey, pending removal from the United States. While being processed for removal, Petrov, without provocation, struck the victim deportation officer in the chin with a closed fist. As a result of Petrov’s assault, the victim deportation officer sustained bodily injury, including a laceration on his chin.
The charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Chana Y. Zuckier of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
24-004 ###
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
petrov.complaint.pdfBrownsville Resident Sentenced to 51 Months in Prison for Possession of Material Depicting the Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH, PA - A resident of Brownsville, Pennsylvania, has been sentenced in federal court to 51 months’ imprisonment, 10 years of supervised release, and has been ordered to pay $28,000.00 in restitution on his conviction of possessing material depicting the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.
United States District Judge Cathy Bissoon imposed the sentence on Karl D. Lutes (52) of Brownsville, PA.
According to information presented to the court at the time of Lutes’s guilty plea, Lutes had been sharing images over the Internet which depicted the sexual exploitation of minors. He was identified through an investigation undertaken by agents of Homeland Security Investigations. On February 11, 2020, agents executed a search warrant at Lutes’s residence and found him in possession of hundreds of videos and still images in computer graphics files depicting the sexual exploitation of minors, some of whom had not yet attained the age of 12 years.
Prior to imposing sentence, Judge Bissoon stated that a sentence that included 51 months in prison served to protect the public, to provide for just punishment, and to afford Lutes with needed rehabilitation. Judge Bisson further highlighted that the submitted Victim Impact Statements provided a view of the real harm to children stemming from crimes involving their sexual exploitation.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Homeland Security Investigations for the investigation leading to the successful prosecution of Lutes.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
2 Indicted in $8.5 Million Nationwide Airbnb/Vrbo Scam that Allegedly Defrauded 1000s of Victims and Discriminated Against RentersRead the Press Release
LOS ANGELES – A federal grand jury has indicted two men on federal fraud charges that allege a double-booking, bait-and-switch scam run through online property rental platforms – primarily Airbnb – that brought in more than $8.5 million through misleading listings and fraudulently canceling reservations, which included discrimination against Black people, the Justice Department announced today.
Shray Goel, 35, of Miami, and Shaunik Raheja, 34, of Denver, were charged Wednesday in a superseding indictment that accuses them of fraud in connection with more than 10,000 reservations linked to nearly 100 properties across 10 states.
Goel was initially charged in an indictment returned on December 13. He was arrested in Florida on December 27 and was released on bond the following day. Raheja was added as a defendant in the superseding indictment. Both defendants are expected to be arraigned in United States District Court in Los Angeles in the coming weeks.
The superseding indictment alleges that Goel and Raheja owned and operated a short-term property rental business that they used to defraud Airbnb, Vrbo and guests renting properties through those platforms. The business operated under various names, including Abbot Pacific LLC.
Goel, Raheja and others who worked with them are alleged to have owned and leased properties throughout the United States for the rental business, including properties in Los Angeles; Malibu, California; Marina Del Rey, California; Denver; Chicago; Davenport, Florida; Savannah, Georgia; Bloomington, Indiana; South Bend, Indiana; Cleveland; Nashville, Tennessee; Austin, Texas; Dallas and Milwaukee. By 2019, according to the superseding indictment, they were managing nearly 100 properties across the United States.
To carry out the fraudulent scheme, Goel and Raheja allegedly double-booked properties through multiple listings of the same property on Airbnb and Vrbo, and then invented bogus last-minute excuses – often claiming plumbing problems – to cancel overbooked guests or trick them into moving to inferior replacement accommodations. According to the superseding indictment, members of the conspiracy profited from the scheme by running a secret bidding war for the properties – meaning they posted multiple listings for the same property at different prices for the same night, allowed the highest bidder to rent a particular property, and then cancelled or switched the lower-paying guests to a different property in the area. The scheme also allegedly allowed Goel, Raheja and their co-conspirators to keep all of their properties in any given area at maximum capacity by using popular listings as bait to trick guests into booking those listings, and then steering overbooked guests at the last minute to less popular and open listings in the same area.
The superseding indictment further alleges that “Goel and Raheja made decisions about which guests to keep and which to cancel based in part on their racial prejudices and discrimination.” The defendants, according to the indictment, tried to avoid renting to guests they perceived to be Black and “in this way depriv[ed] these guests of their property interest in the reservations and otherwise caus[ed] these guests to suffer monetary losses when their reservations were cancelled.”
“This deplorable scheme victimized thousands of consumers and families across the country, some of whom allegedly were discriminated against because of racial bias,” said United States Attorney Martin Estrada. “Fueled by greed, the defendants deceived consumers about the locations and conditions of properties, canceled reservations to double-book properties and based on racial prejudices, and lied to victims leaving them scrambling to find last-minute replacement accommodations. The sheer number of victims is astonishing, as is the millions of dollars earned though the scheme that took advantage of the reputations of online rental platforms that offer a valuable service.”
“The defendants are charged with preying on unsuspecting travelers and robbing them of time and money, leaving them with no choice but to settle for inferior lodging at the last minute,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The conspiracy charge alleging that the defendants discriminated against potential renters based on their skin color is a reprehensible abuse which must not be tolerated in the United States. The FBI will work with our federal partners and with the private sector to ensure business practices in the vacation rental industry are free of fraud and bias.”
“This indictment charges defendants for their alleged roles in a scheme to defraud Airbnb, Vrbo, and guests renting properties through those platforms,” said Special Agent in Charge Ryan Korner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “FDIC-OIG remains steadfastly committed to protecting our nation and innocent victims by identifying and bringing to justice individuals who orchestrate these types of fraudulent schemes.”
According to the superseding indictment, Goel, Raheja and their co-schemers used fake host names and, in certain instances, other people’s identities to list properties. They allegedly used these fake host accounts to conceal their own identities, to double-book properties, and to post fabricated positive reviews of their properties. They were also allegedly using the fake host accounts to continue to list properties after they had been banned from Vrbo in 2015 because of repeated host cancellations and guest complaints.
In some cases, according to the superseding indictment, Goel, Raheja and their accomplices listed fake addresses, addresses that did not have any rental housing, were unaffiliated with the schemers, or did not exist at all – using these fake addresses to create duplicate listings for a single purported property. The fake addresses also allegedly allowed them to evade local rules and regulations governing short-term rentals, and to control who had access to properties.
To further their fraud, Goel and Raheja allegedly took steps to prevent negative reviews from affecting their business by falsely discrediting such reviews and otherwise trying to hide them from prospective future guests. According to the superseding indictment, they would post bogus negative reviews about the guests who had panned their listings or called out the fraudulent and deceptive listing practices, and they would remove negatively reviewed listings and then re-list the properties using new listing identifiers, thereby purging the bad reviews from the properties.
According to the superseding indictment, Goel and Raheja used these and other lies and misrepresentations to trick guests into booking properties they would not have otherwise booked and to keep payments from guests entitled to refunds. The last-minute nature of the cancellations also caused guests and the rental platforms to suffer losses when guests were forced to find alternative lodging at the last minute.
“In 2018 and 2019, in the course of the scheme and in furtherance of it, defendants Goel and Raheja and others working with them and at their direction booked more than 10,000 reservations through Airbnb, receiving more than $7 million in payouts on those reservations; they booked additional and sometimes conflicting reservations through Vrbo and received more than $1.5 million in additional payouts from those reservations,” according to the indictment.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The superseding indictment charges Goel and Raheja with conspiracy to commit wire fraud and 13 counts of wire fraud. Goel is additionally charged with two counts of aggravated identity theft.
The conspiracy and wire fraud charges each carry a statutory maximum penalty of 20 years in federal prison. There is a two-year mandatory consecutive sentence for the aggravated identity theft counts.
The FBI and FDIC-OIG are investigating this matter. The Federal Housing Finance Agency – Office of Inspector General is assisting in the investigation.
Both Airbnb and Vrbo are cooperating with the government in this investigation, and the government recognizes and appreciates that cooperation.
Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section is prosecuting the case.
19 Individuals Worldwide Charged in Transnational Cybercrime Investigation of the xDedic MarketplaceRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the culmination of a transnational cybercrime investigation involving the xDedic Marketplace. According to court documents, the xDedic Marketplace was a website on the dark web that illegally sold login credentials (usernames and passwords) to servers located across the world and personally identifiable information—dates of birth and Social Security numbers—of U.S. residents. Once purchased, criminals used these servers to facilitate a wide range of illegal activity that included tax fraud and ransomware attacks. The xDedic administrators practiced exceptional operational security, operating the website across a widely distributed international network, and utilizing cryptocurrency in order to hide the locations of the Marketplace’s underlying servers and the identities of its administrators, sellers, and buyers. In total, xDedic offered more than 700,000 compromised servers for sale, including at least 150,000 in the United States and at least 8,000 in Florida. Marketplace victims spanned the globe and industries, including local, state, and federal government infrastructure, hospitals, 911 and emergency services, call centers, major metropolitan transit authorities, accounting and law firms, pension funds, and universities.
In January 2019, the U.S. Attorney’s Office for the Middle District of Florida (Tampa Division) seized xDedic’s domain names and dismantled the website’s infrastructure, effectively ceasing its operation. The international operation to dismantle and seize this infrastructure was the result of close cooperation with law enforcement authorities in Belgium and Ukraine, the European law enforcement agency Europol, the National High Tech Crime Unit from the Dutch National Police, and the German Bundeskriminalamt.
In the years that followed the takedown of the xDedic Marketplace, the U.S. Attorney’s Office investigated and charged individuals involved in every level of the website’s operation, including its administrators, server sellers, and buyers. For example, Alexandru Habasescu and Pavlo Kharmanskyi were Marketplace administrators. Habasescu, who resided in Chisnau, Moldova, was the lead developer and technical mastermind for the Marketplace, while Kharmanskyi, who lived in Kiev, Ukraine, advertised for the website, paid administrators, and provided customer support to buyers. Habasescu was taken into custody in the Spanish Canary Islands in 2022 and extradited to the United States, while Kharmanskyi was arrested at the Miami International Airport in 2019 as he attempted to enter the United States. Habasescu and Kharmanskyi were sentenced to 41 and 30 months’ imprisonment, respectively.
Marketplace seller Dariy Pankov, a Russian national, was one of the highest sellers on the Marketplace by volume, listing for sale the credentials of more than 35,000 compromised servers located all over the world and obtaining more than $350,000 in illicit proceeds. Pankov’s criminal activities were facilitated by a powerful malicious software program he developed named “NLBrute,” that was capable of compromising protected computers by decrypting login credentials. Pankov was taken into custody in the Republic of Georgia in 2022 and extradited to the United States. He was subsequently sentenced to 60 months in federal prison.
Nigerian national Allen Levinson was a prolific buyer on the Marketplace who held particular interest in purchasing access to U.S.-based Certified Public Accounting firms. He used the information he obtained from those servers to file hundreds of false tax returns with the United States government, requesting more than $60 million in fraudulent tax refunds. Levinson was taken into custody in the United Kingdom in 2020 and extradited to the United States. He was subsequently sentenced to 78 months in federal prison.
Many of the charged defendants are foreign nationals and hold citizenship in countries that do not extradite their nationals, requiring the United States to locate and extradite subjects from countries that do. As identified in the table below, to date, 17 defendants have been charged and/or extradited to the United States.
Name
(Age, Nationality)
Offense of Conviction
Term of
Imprisonment
Allen Levinson
(31, Nigeria)
Conspiracy to Commit
Mail and Wire Fraud
78 months
T’Andre McNeely
(33, California)
Conspiracy to Commit
Mail and Wire Fraud
78 months
Michael Carr
(33, California)
Conspiracy to Commit
Mail and Wire Fraud
78 months
Dariy Pankov
(29, Russia)
Conspiracy to Commit
Access Device and Computer Fraud
60 months
Glib Ivanov-Tolpintsev
(29, Ukraine)
Conspiracy to Commit
Access Device and Computer Fraud
48 months
Alexandru Habasescu
(31, Moldova)
Access Device Fraud
41 months
Adedotun Adejumo
(45, Oklahoma)
Conspiracy to Commit Wire Fraud
33 months
Pavlo Kharmanskyi
(32, Ukraine)
Access Device Fraud
30 months
Joshua Spencer
(29, New York)
Conspiracy to Commit
Access Device Fraud
28 months
Ibrahim Jinadu
(36, Georgia)
Conspiracy to Commit
Wire Fraud
27 months
Brandon Williams
(34, California)
Conspiracy to Commit
Mail and Wire Fraud
12 months
Harold McKinzie
(29, Illinois)
Wire Fraud
5 years’ probation
Bamidele Omotosho
(42, Nigeria)
Conspiracy to Commit Wire Fraud
Sentence pending
Olayemi Adafin
(38, United Kingdom)
Conspiracy to Commit Wire Fraud
Sentence pending
Olakunle Oyebanjo
(29, United Kingdom)
Conspiracy to Commit Wire Fraud
Sentence pending
Akinola Taylor
(38, United Kingdom)
Conspiracy to Commit Wire Fraud
Sentence pending
Oluwarotimi Ogunlana
(29, Texas)
Conspiracy to Commit Wire Fraud
Sentence pending
In addition to the individuals above, xDedic Marketplace buyers Olufemi Odedeyi (42, United Kingdom) and Oluwaseyi Shodipe (41, United Kingdom) have been charged with conspiracy to commit wire fraud and aggravated identity theft. Both and are pending extradition from the United Kingdom. Shodipe has also been charged with making false claims and theft of government funds. If convicted, Odedeyi and Shodipe each face a maximum penalty of 20 years in federal prison.
These cases were led by the Tampa Division of the Federal Bureau of Investigation and the Tampa Field Office of Internal Revenue Service - Criminal Investigation. Substantial assistance was provided by the IRS-CI Cyber Crimes Unit (Washington, D.C.), the Department of Justice’s Office of International Affairs, and Homeland Security Investigations. This investigation also benefited greatly from cooperation with foreign law enforcement in Belgium, Georgia, Germany, Poland, Spain, the United Kingdom, Romania, Switzerland, Estonia, Latvia, Bulgaria, Ukraine, Lithuania, and Moldova. The cases are being prosecuted by Assistant United States Attorneys Rachel K. Jones, Carlton C. Gammons, and Suzanne Nebesky.
"Rainbow" Fentanyl and Illegal Firearm Land Oklahoma City Man in Federal Prison for 78 MonthsRead the Press Release
Fentanyl was Mailed to Metro Post Office and Picked Up by Defendant
OKLAHOMA CITY – Yesterday, CRISTOBAL CALDERON, 28, of Oklahoma City, was sentenced to serve 78 months in federal prison for drug conspiracy and for being a drug user in possession of a firearm, announced U.S. Attorney Robert J. Troester.
“Fentanyl is destroying lives every day, devastating families and communities,” said U. S. Attorney Robert J. Troester. “My office is committed to protect the public from further harm by aggressively pursuing those who dispense this deadly poison. I commend the Postal Inspection Service and DEA for their tireless commitment to fight this fentanyl epidemic.”
“The U.S. Postal Inspection Service values our partnership with the DEA and the U.S. Attorney’s Office in the Western District of Oklahoma, who held Calderon responsible for his dangerous activity,” said Kai Pickens, Inspector in Charge of the U.S. Postal Inspection Service, Fort Worth Division. “The Postal Service has no interest in being the unwitting accomplice to anyone using the U.S. Mail to distribute illegal drugs. Our Contraband Interdiction and Investigations program focuses on ensuring these dangerous and deadly synthetic opioids stay out of neighborhoods across America. These crimes are a priority for Postal Inspectors and demonstrate the importance of our mission that includes the safeguarding of the Postal Service, its customers, and preventing the illegal use of the U.S. Mail.”
“As we continue to lose lives by this fentanyl epidemic, know that any pill, regardless of color, shape, or size that you purchase on the street must be treated as if it were potentially deadly illicit fentanyl,” said Eduardo A. Chávez, Special Agent in Charge of DEA Dallas, which oversees operations in Oklahoma. “Mr. Calderon is being held accountable for the poison that found its way into our community by his hand. Whether it is one pill of fentanyl or 1,000, the DEA will never cease its efforts to rid these drugs from the streets of Oklahoma.”
On February 14, 2023, Calderon was charged by Superseding Information with drug conspiracy and being a drug user in possession of a firearm. According to court documents, on November 3, 2022, the United States Postal Inspection Service (USPIS) intercepted a package believed to contain a controlled substance. USPIS authorities searched the package and located more than 2 kilograms worth of counterfeit Oxycodone pills, which later tested positive for fentanyl. The complaint describes the pills as being “rainbow fentanyl.” The Drug Enforcement Administration has advised that “rainbow fentanyl” is dyed into a variety of bright colors to avoid detection and to make the highly addictive drug more appealing to young people.
Days after the onset of the investigation, public record reflects that an individual called a U.S. Post Office in Oklahoma City to inquire on the above-mentioned package. On November 8, 2022. Calderon picked-up the package and was arrested shortly thereafter at an Oklahoma City motel. At the time of his arrest, authorities located a firearm in Calderon’s waistband.
On April 4, 2023, Calderon pleaded guilty and admitted to (1) possessing fentanyl with the intent to distribute the substance and (2) possessing a handgun while being a user of illegal drugs.
At the sentencing hearing yesterday, U.S. District Judge Timothy D. DeGiusti sentenced Calderon to serve 78 months in federal prison, followed by five years of supervised release. In announcing his sentence, Judge DeGiusti noted the especially dangerous nature of fentanyl. Calderon has been in federal custody since November 14, 2022.
This case is the result of an investigation by the United States Postal Inspection Service and the Drug Enforcement Administration. Assistant U.S. Attorneys Chelsea Pratt and Daniel Gridley prosecuted the case.
Reference is made to public filings for additional information.
Wednesday 3 January 2024
Woman Sentenced for Trafficking Methamphetamine Through NebraskaRead the Press Release
Acting United States Attorney Susan Lehr announced that Daisy Flores, 22, of Fresno, California was sentenced on January 3, 2024, in federal court in Omaha, Nebraska for possession with intent to distribute methamphetamine. United States District Court Judge Brian C. Buescher sentenced Flores to 121 months imprisonment. There is no parole in the federal system. After her release from prison, Flores will begin a 3-year term of supervised release.
On February 6, 2022, an Otoe County sheriff’s deputy pulled over a Ford Expedition near the Nebraska-Iowa border for a traffic violation. The Expedition was driven by Flores’s mother, Teresa Martinez, and Flores was the passenger. A search of the vehicle uncovered approximately eight pounds of methamphetamine and approximately four pounds of marijuana. Crime laboratory testing of the methamphetamine confirmed purity of approximately 89 percent.
Martinez was sentenced in November to 87 months imprisonment.
This case was investigated by the Otoe County Sherriff’s Department and Homeland Security Investigations. The Douglas County Sheriff’s Office assisted with testing of the methamphetamine.
Virginia Man Indicted for Sexual Exploitation of Ten-Year-Old GirlRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Manassas, Virginia man was indicted today for engaging in sexual activity with a ten-year-old girl he met on social media.
According to court documents, Daniel Eliazar Ramos Rosa, 23, exchanged over 1,000 messages, photos, and videos with the victim via Snapchat, pressuring her for photos and sexual favors. Rosa then traveled to the victim’s Harpers Ferry home, climbed into her bedroom window, and engaged in sexual activity with her. Rosa filmed himself having sex with the girl before fleeing after her father entered the room, leaving behind shoes, clothing, and sex toys.
“This case is a grim reminder of how sexual predators utilize social media to gain access to children,” said United States Attorney William Ihlenfeld. “I applaud the work of the FBI, the Jefferson County Sheriff’s Department, and the federal prosecutors in my office for bringing Mr. Rosa to justice.”
Rosa is charged with coercion and enticement of a minor for sex, travel with intent to engage in sex with a minor, and production of child pornography.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting this case.
The FBI and Jefferson County Sheriff’s Department investigated.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Vermont Man Pleads Guilty to Firearm and Drug OffensesRead the Press Release
BOSTON – A Vermont man pleaded guilty today in federal court in Springfield in connection with illegally possessing a firearm and ammunition and possessing with intent to distribute methamphetamine.
Jeffrey Baird, 43, pleaded guilty to one count of being a felon in possession of a firearm and ammunition and one count of possessing with the intent to distribute methamphetamine. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for April 4, 2024. Baird was indicted by a federal grand jury in March 2022.
In December 2021, law enforcement stopped Baird’s vehicle travelling north on Route 91 in Northampton. Baird had a fake paper license plate taped to his back window and had been driving without any valid driver’s license. Baird was taken into custody. During a subsequent search of Baird’s vehicle, a revolver and five rounds of ammunition were found along with 207 grams of methamphetamine in a Ziplock bag – which carried a street value of between $6,000 and $10,000. Additionally, three more rounds of ammunition were found on Baird’s person inside his Hell’s Angels vest.
Baird is prohibited from possessing firearms and ammunition due to prior convictions for firearms offenses.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of possession with the intent to distribute methamphetamine provides for a sentence up to 20 years in prison, up to three years of supervised release and a fine of up to $1 million. 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 & Explosives, Boston Field Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla, Chief of the Springfield Branch Office, is prosecuting the case.
Two-time bank fraudster sentenced to four years in prisonRead the Press Release
ATLANTA - Michael Adeola Akhiero has been sentenced for bank fraud and aggravated identity theft concerning his use of victims’ personal and bank account information to create and deposit counterfeit checks totaling more than $250,000. Akhiero committed the offenses after having previously been convicted of bank fraud and while serving a term of supervised release.
“Akhiero chose to reoffend rather than rehabilitate,” said U.S. Attorney Ryan K. Buchanan. “His actions caused substantial financial losses to numerous victims and banks. His fraud and greed has resulted in the loss of his freedom and hopefully sends a powerful message of deterrence to others.”
“Clearly, Akhiero has not learned the lesson, that crime doesn’t pay, so he will continue to face justice for his repeated fraudulent actions,” said Acting Special Agent in charge Travis Pickard who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI will continue to aggressively investigate those criminals who attempt to defraud our nation’s financial infrastructure.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Shortly after Akhiero’s release from federal prison for a prior bank fraud conviction, he engaged in a fraudulent check scheme and deposited numerous counterfeit checks purportedly issued from corporate and individual victims’ bank accounts. Between October 2019 and May 2022, Akhiero used stolen identity and bank account information to create these counterfeit checks. He then deposited the fake checks into his personal and business bank accounts resulting in the withdrawal of over $250,000 from multiple victims’ accounts.
Michael Adeola Akhiero, 30, of Atlanta, Georgia, was sentenced to four years in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $77,200. Akhiero was convicted on these charges on August 1, 2023, after he pleaded guilty.
The Court also found that Akhiero violated the terms of his supervised release from his prior bank fraud case when he committed new criminal conduct, in addition to other violations. The Court revoked his supervised release term and sentenced him to one year in prison, to run concurrently with his four-year prison term for bank fraud and identity theft.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorney Kelly K. Connors prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Sentenced for Distributing Fentanyl Resulting in DeathRead the Press Release
CHARLOTTE, N.C. – Patrick Tylicki, 32, of Matthews, North Carolina, and his co-conspirator, Gregory Alan Kirk, 28, of Charlotte, were sentenced today for their role in distributing fentanyl that resulted in a victim’s death, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Tylicki was sentenced to 144 months in prison followed by four years of supervised release. Kirk was sentenced to 235 months in prison followed by six years of supervised release.
“Fentanyl kills,” said U.S. Attorney King. “It’s a lethal drug that devastates our communities and shatters families affected by accidental drug poisonings and fatal overdoses. Fentanyl dealers like Tylicky and Kirk will be brought to justice and held accountable for their role in bringing this deadly substance into our communities.”
“Dangerous drugs continue to flow into our communities at the expense of too many lives. This successful operation has ensured these drug traffickers have been taken off our streets, ultimately making the communities safer for everyone,” said Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office.
“Nothing will bring back the victim nor ease the unnecessary pain the family was subjected to from losing a loved one. However, I hope knowing these drug traffickers are off the streets helps the family with grieving and aiding in closure,” said Chief Joseph A. Hatley of the Mint Hill Police Department.
“It is sad to see the impact that this terrible drug has had across our nation. With the known devastation that the illegal use of fentanyl brings, it makes it that much harder to see that some are so willing to take part in profiting from it with no concern whatsoever for life,” said Interim Chief Roy Sisk of the Matthews Police Department. “We are grateful for the strong alliance with the United States Attorney’s Office and their commitment to helping protect the citizens of our community. We also want to thank the DEA for their continued partnership in investigating these types of crimes in our area. We hope that this collaborative effort of holding Tylicki and Kirk accountable for their crimes serves as a compelling deterrent for all others.”
According to filed court documents and court proceedings, on January 26, 2021, Tylicki sold fentanyl supplied by Kirk to an individual who later died from a drug overdose. Over the course of the investigation into the victim’s overdose death, law enforcement recovered text messages between the victim and Tylicki arranging the drug transaction. Court documents further show that law enforcement officers working undercover conducted multiple controlled fentanyl purchases from Tylicki and determined that Tylicki continued to sell fentanyl knowing that the victim had died due to a drug overdose from the fentanyl supplied by Kirk. According to court records, during a conversation with an undercover officer, Tylicki told the officer that the drugs came from Kirk, that the drugs were “strong,” that customers should be warned about their potency, and that people will “drop dead” if they don’t heed that warning.
Court documents further show that in addition to being Tylicki’s drug supplier, Kirk was present or nearby during Tylicki’s controlled fentanyl sales to undercover officers. As part of the investigation, law enforcement executed a search warrant at Kirk’s residence, where they recovered nearly a kilogram of fentanyl, which is approximately 10,000 usage units, 13 pounds of marijuana, digital scales, a pill press, a kilogram press used for preparing cocaine for large-scale distribution, and more than $4,800 in cash.
In August 2022, Tylicki pleaded guilty to fentanyl trafficking conspiracy resulting in death, distribution of fentanyl resulting in death, and distribution of fentanyl.
In September 2022, Kirk pleaded guilty to fentanyl trafficking conspiracy, distribution of fentanyl and aiding and abetting, and possession with intent to distribute fentanyl. According to court records, at the time Kirk was engaged in the distribution of fentanyl, he had three prior felony drug trafficking convictions. As a result, Kirk’s sentence was enhanced due to his classification as a “career offender” under the United States Sentencing Guidelines.
In making today’s announcement, U.S. Attorney King commended the DEA, the Mint Hill Police Department, and the Matthews Police Department for their investigation of the case, and thanked the Charlotte-Mecklenburg Police Department for assisting with the investigation.
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Fentanyl is a synthetic opioid that is 50 times more potent than heroin and remains the deadliest drug threat in the United States. According to the DEA’s One Pill Can Kill public awareness campaign, the agency seized a record of 74.5 million fentanyl pills in 2023. Laboratory testing indicates that seven out of 10 pills seized by the DEA contained a lethal dose of fentanyl.
According to the Centers for Disease Control and Prevention, in 2022, more than two thirds (68%) of the reported 107,081 drug overdose deaths in the United States involved synthetic opioids and primarily fentanyl.
For information and resources related to substance use disorder, please call the Substance Abuse and Mental Health Services Administration helpline at 1-800-662-HELP (4357) or visit the online treatment locator.
Two More Defendants Sentenced to Probation for Wire Fraud and Money Laundering ConspiracyRead the Press Release
NEW ORLEANS – DILLON ARCENEAUX, age 33, a resident of Marrero, Louisiana, and ZEB SARTIN, age 37, a resident of Duson, Louisiana, were sentenced today by U.S. District Court Judge Jane Triche-Milazzo, after previously pleading guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering, announced U.S. Attorney Duane A. Evans. ARCENEAUX received 3 years of probation, with the first 12 months to be served in home confinement, a $10,000 fine, and he was ordered to pay $1,604,581 in restitution to the victim. SARTIN received 3 years of probation, with the first 12 months to be served in home confinement, and he was ordered to pay $2,100,690 in restitution to the victim from U.S. District Court Judge Jane Triche-Milazzo. ARCENEAUX and SARTIN were also ordered to pay a mandatory special assessment of fee $100 per count.
As according to court documents, ARCENEAUX and SARTIN conspired with RYAN MULLEN, DUANE DUFRENE, GRANT MENARD, and LANCE VALLO to use several shell Louisiana corporations that were devoid of assets, to defraud a Georgia based merchant cash company. MULLEN and DUFRENE helped establish ARCENEAUX, VALLO, MENARD, and SARTIN as the owners of the existing corporations. MULLEN and DUFRENE then created fake vendor accounts for the corporations, and MULLEN, along with another person, created falsified bank records for the corporations. MULLEN then used an alias and represented himself to be a broker for the shell corporations he helped create.
Through the aid of another broker, MULLEN supplied the victim merchant cash advance company with the fake vendor accounts and false bank records in order to obtain funding. The victim cash advance company approved the advances and electronically wired ARCENEAUX, VALLO, MENARD, and SARTIN millions of dollars in advances. ARCENEAUX, VALLO, MENARD, and SARTIN laundered a some of the funds by paying MULLEN and DUFRENE percentages of the funds. ARCENEAUX, VALLO, MENARD, and SARTIN then closed their non-existent corporations before fully repaying the victim merchant cash advance company, resulting in overall losses of approximately $6.4 million. ARCENEAUX was responsible for approximately $1.6 million in losses to the victim, and SARTIN was responsible for $2.1 million in losses.
U.S. Attorney Evans commended the special agents of the Federal Bureau of Investigation and IRS-Criminal Investigation for their handling of the matter. The case is being prosecuted by Assistant United States Attorneys Edward J. Rivera of the Financial Crimes Unit and Andre J. Lagarde of the Public Integrity Unit.
Two California Men Sentenced for Insider Trading Using Information Stolen from LumentumRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that SRINIVASA KAKKERA and ABBAS SAEEDI were sentenced by U.S. District Judge Gregory H. Woods to 18 months and five months, respectively, for their participation in a scheme to commit insider trading based on material, non-public information (“MNPI”) that a third co-defendant, Amit Bhardwaj, misappropriated from Bhardwaj’s employer, Lumentum Holdings Inc. (“Lumentum”). Judge Woods previously sentenced Bhardwaj to 24 months in prison and a fine of $975,000.
U.S. Attorney Damian Williams said: “Srinivasa Kakkera and Abbas Saeedi traded on valuable material, non-public information about Lumentum’s planned acquisitions, knowing that their friend had stolen this information from his employer, Lumentum. Kakkera and Saeedi used their informational advantage to make millions in combined illegal gains in the stock market. But insider trading is not easy money: if you try to illegally profit from material, non-public information, there’s a price to be paid.”
According to the allegations in the Indictment and statements made in public court proceedings:
In approximately December 2020, Bhardwaj learned that Lumentum was considering acquiring Coherent, Inc (“Coherent”). Based on this information, Bhardwaj himself purchased Coherent stock and call options, and Bhardwaj tipped three associates, including SAEEDI, and these individuals all traded in Coherent securities as a result.
In or about October 2021, Bhardwaj learned that Lumentum was engaged in confidential discussions with Neophotonics Corporation (“Neophotonics”) about a potential acquisition. Bhardwaj provided this information to KAKKERA, SAEEDI, and Ramesh Chitor, and these individuals all traded in Neophotonics securities. KAKKERA also caused other friends and family to purchase Neophotonics securities. When Neophotonics’ stock price increased substantially following the announcement of the Lumentum acquisition in November 2021, KAKKERA, SAEEDI, and Chitor closed their positions in Neophotonics securities and made collectively approximately $4.3 million in realized and unrealized profits. In particular, KAKKERA made $2,453,687.99 and SAEEDI made $691,104.73.
After they were interviewed by the Federal Bureau of Investigation (“FBI”) and served with federal grand jury subpoenas on approximately March 29, 2022, Bhardwaj, KAKEKRA, and SAEEDI took steps to obstruct the federal investigation of their conduct. They met in person on multiple occasions and discussed, among other things, potential false stories that would conceal their insider trading scheme as well as creating false documents to buttress lies regarding payments that were, in reality, related to the insider trading scheme.
* * *
In addition to the prison sentence, KAKKERA, 48, of Pleasanton, California, was ordered to forfeit $2,453,687.99. SAEEDI, 48, of Fremont, California, was ordered to forfeit $691,104.73.
Mr. Williams praised the outstanding work of the FBI. He also acknowledged the assistance of the Securities and Exchange Commission, which separately initiated civil proceedings against KAKKERA and SAEEDI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Adam Hobson and Noah Solowiejczyk are in charge of the prosecution.
Stanley County Man Pleads Guilty to Filing Fraudulent Tax ReturnRead the Press Release
GREENSBORO – BRANTLEY TODD FORREST, of Stanly County, appeared in federal court today on tax fraud charges, announced Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina. FORREST pleaded guilty to filing a false tax return, a violation of Title 26, United States Code, Section 7206(1), after an investigation revealed that he had withheld information from a tax return preparer regarding income related to his business.
According to court-filed documents, FORREST owned and operated a business known as Fence Pro of the Carolinas. The investigation revealed that during the years 2017-2021, FORREST concealed $2,068,864 in gross revenues from the Internal Revenue Service and his tax return preparer. The income that FORREST reported on his returns was so low that he qualified for tax credits designed for low-income, working individuals and COVID relief payments. FORREST’s conduct caused a tax loss of over $500,000.
“Federal income tax compliance should be equally shared among all Americans,” said Donald “Trey” Eakins, Special Agent in Charge, IRS Criminal Investigation, Charlotte Field Office. “Conspiring to defraud the government by underreporting taxable income is unlawful. Mr. Forrest’s plea today serves as an important reminder that IRS CI is committed to bringing to justice those who dodge their federal income tax responsibilities.”
Sentencing is scheduled to take place on April 30, 2024, at 11:30 a.m. in Greensboro, North Carolina, courtroom number 1, before United States District Court William L. Osteen, Jr. At sentencing, FORREST faces a maximum sentence of three years in prison, a period of supervised release of up to one year, and monetary penalties.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina made the announcement after United States District William L. Osteen, Jr. accepted the plea. Internal Revenue Service - Criminal Investigation is investigating the case and Assistant U.S. Attorney Ashley Waid is prosecuting the case.
###
St. Charles Felon Caught with Ammunition Sentenced to 57 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Wednesday sentenced a convicted felon accused of a 2021 shooting in St. Louis, Missouri to 57 months in prison.
After watching video of the shooting and its aftermath and hearing from a St. Louis Metropolitan Police Department detective and a special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Judge Schelp said it had been proven that Deantre Brown, 34, had fired into a crowd outside the Reign nightclub on Aug. 18, 2021.
Video showed the shooter leaving the scene and returning to a nearby parking garage with what appeared to be a gun. Evidence and testimony showed that the suspect used a key card belonging to the mother of Brown’s then-girlfriend to enter the garage and then leave in Brown’s Dodge Charger.
Brown, of St. Charles, pleaded guilty in October to two felony counts of being a felon in possession of ammunition. He admitted in his plea agreement that he was present at the shooting but disputed that he fired a gun. He did admit “both the power and the intention to exercise dominion or control over the ballistic cartridge casings” found at the shooting scene. He also admitted possessing ammunition in his vehicle when he was arrested on Sept. 22, 2021, at his parole officer’s office.
The St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Jennifer Szczucinski prosecuted the case.
Spokane Drug Trafficker sentenced to 14 Years in PrisonRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that James P. LeBlanc, age 45, of Spokane, Washington was sentenced after pleading guilty to Possession with Intent to Distribute 50 Grams of Actual (Pure) Methamphetamine. United States District Judge Mary K. Dimke imposed a sentence of 168 months imprisonment to be followed by 5 years of supervised release.
According to court documents and information disclosed at sentencing, in March of 2022, LeBlanc was involved in a car accident in Spokane. When the other driver attempted to exchange insurance information with LeBlanc, he took off running. Officers with the Spokane Police Department (SPD) attempted to locate LeBlanc but were unsuccessful. Officers then obtained a search warrant for Leblanc’s GMC Yukon and found two bags of cocaine, an amount of methamphetamine about the size of a softball, blue pills, two digital scales, ammunition, marijuana, extended magazines, a flash bang, and a Glock .40 caliber pistol that had been reported stolen out of Montana.
In August, following up on an anonymous tip to the Drug Enforcement Administration (DEA), detectives found an additional $4,401 dollars located in a hidden compartment in the dashboard of the Yukon.
In September of 2022, SPD officers assigned to the Violent Crimes Task Force attempted to take LeBlanc into custody at a house in northeast Spokane, but LeBlanc ran off and again was able to avoid arrest. SPD executed a search warrant on a Lincoln MKX LeBlanc was driving and seized a Glock 9mm pistol, digital scales, drug paraphernalia, and plastic baggies used in drug distribution. A DEA agent collected 169 grams of methamphetamine, 38 grams of cocaine, and approximately 1,500 fentanyl pills.
In October of 2022, SPD officers responded to a domestic violence call involving LeBlanc. When officers arrived, LeBlanc tried running, but was arrested in the backyard of a home nearby.
SPD again executed a search warrant on LeBlanc’s vehicle, a Pontiac G6. Offices secured two pistols, which had been reported stolen. Officers also located a large sum of cash, a substantial amount of drugs and a shotgun with a pistol grip.
“Mr. Leblanc was involved in three separate instances where he was armed and in possession of a significant amount of deadly narcotics he planned to distribute on our streets. His actions contributed to the growing epidemic of drug use in our communities,” stated U.S. Attorney Waldref. “Mr. Leblanc attempted to run from the law, but our dedicated law enforcement team put an end to Mr. Leblanc’s spree of criminal activity.”
“This is another example of the success we can achieve through our cooperative approach in Eastern Washington,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “We are all stronger together and this sentence highlights how effective we can be as a team.”
“The arrest and subsequent sentencing of James LeBlanc highlights the incredible work the officers of the Spokane Police Department undertake every day,” stated Lt. Rob Booth, SPD Tactical Operations Commander. “This arrest is another example of the interagency cooperation that exist between the Spokane Police Department and our federal partners. The dedication and tireless efforts of the Violent Crimes Task Force have taken a significant threat off the streets and made Spokane safer.”
This case was investigated by the Drug Enforcement Administration and the Spokane Police Department. This case was prosecuted by Assistant United States Attorney Patrick Cashman.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Siblings convicted of purchasing 7,000 rounds of ammunition for transport across the borderRead the Press Release
LAREDO, Texas – Three siblings have admitted to buying, transporting and concealing ammunition intended to be smuggled into Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Rolando Herrera, 26, pleaded guilty this morning in addition to another charge of conspiracy to smuggle ammunition with intent to promote a felony. His sisters, Ashley Herrera, 22, and Yamileth Herrera, 21, entered their guilty pleas Dec. 12, 2023. All are U.S. citizens and maintain residences in Laredo and in Nuevo Laredo, Tamaulipas, Mexico.
Between May 16, 2023, through May 24, 2023, the siblings placed orders at a local sporting goods store for 7,000 rounds of 5.56-millimeter ammunition. Ashley placed the first order of 3,000 rounds which she and Rolando picked up at the store. Ashley later placed a second order in another person’s name for 3,000 rounds who picked up that ammunition and delivered it to the Herreras’ parents’ home. Yamileth later ordered and picked up 1,000 rounds of ammunition.
Rolando admitted he intended to smuggle the ammunition to persons in Mexico, provided the funds for all purchases and requested his sisters order the ammunition for him.
Ashley transported cartons of 6,000 rounds of ammunition to her parents’ home where she and Yamileth moved them into a bedroom where it remained concealed until Rolando would pick it up to smuggle to Mexico.
Law enforcement intercepted Yamileth Herrera who was in possession of 1,000 rounds she had just purchased.
Authorities collected a total of 7,000 rounds of ammunition from the Herrera sibling’s smuggling operation.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing in April. At that time, they each face up to 10 years in federal prison and a possible $250,000 maximum fine. Rolando also faces up to 15 years for the additional charge of conspiring to smuggle ammunition out of the United States to promote a felony.
All three have been permitted to remain on bond pending sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Commerce and Bureau of Industry and Security’s Office of Export Enforcement conducted the investigation with the assistance of Homeland Security Investigations and the Laredo Police Department.
Assistant U.S. Attorney Homero Ramirez is prosecuting the case as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Shiprock Man Sentenced to 27 Months in Prison for Assault Against a ChildRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that Myron Benally was sentenced to 27 months in prison. Benally, 39, of Shiprock, and a registered member of the Navajo Nation, pled guilty in federal court to assault resulting in serious bodily injury on Aug. 18, 2023.
According to court documents, on June 27, 2019, Benally assaulted a 13-month-old infant in his care, causing serious bodily injury including a broken arm.
Upon his release from prison, Benally will be subject to 3 years of supervised release.
The FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant United States Attorney Mark Probasco is prosecuting the case.
View the Indictment View the Plea Agreement# # #
24-6
Second Aryan Brotherhood Prison Gang Member Pleads Guilty to Murder in Aid of RacketeeringRead the Press Release
SACRAMENTO, Calif. — Pat Brady, 53, of Lake Forest, pleaded guilty today to murder in aid of racketeering as part of a long-running investigation into the California Aryan Brotherhood prison gang, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder, conspiracies to murder, and drug trafficking crimes. The charges allege that AB members oversaw a significant heroin and methamphetamine trafficking operation from their California prison cells using smuggled cellphones to direct drug trafficking activities, order murders, and oversee other criminal activities inside and outside of the prisons.
According to the plea agreement, on July 28, 2018, Brady murdered an inmate at High Desert Prison as part of an AB-related killing. Brady admitted that he committed the murder because the victim falsely claimed to be an AB member and had run up a significant drug debt at his previous prison — both violations of the AB’s expected codes of conduct. Brady willfully, deliberately, and with premeditation, murdered the victim in order to maintain his status within the gang.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office. Assistant U.S. Attorneys Jason Hitt, Ross Pearson, and David Spencer are prosecuting the case.
U.S. District Judge Kimberly J. Mueller is scheduled to sentence Brady on March 25, 2024. Brady faces a mandatory sentence of life in prison.
Four remaining defendants, Ronald Yandell, Billy Sylvester, Danny Troxell, and Jason Corbett are scheduled for trial in February 2024. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
brady_-_plea_agreement_-_filed_-_ecf_1781.pdfSanta Domingo Man Sentenced to 10 Years in Prison for Sexual AbuseRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Santiago Quintana was sentenced to 10 years in prison. Quintana, 70, of Santo Domingo, and a member of the Santo Domingo Pueblo, pleaded guilty to abusive sexual contact on Sep. 21, 2023.
According to court documents, on Jan. 25, 2023, the Bureau of Indian Affairs received an allegation involving the sexual abuse of children from a school principal. A Forensic Interviewer from the FBI interviewed the victim who stated that she and her sibling had been sexually abused by Quintana for about six years, beginning when they were 6 and 7 years old, and the siblings had both witnessed Quintana sexually abusing the other. In his plea agreement, Quintana admitted to engaging in sexual contact with the victim who was over the age of twelve years but had not yet attained the age of sixteen years.
Upon his release from prison, Quintana will be subject to 15 years of supervised release and must register as a sex offender.
The FBI Albuquerque Field Office investigated this case with assistance of the Bureau of Indian Affairs. Assistant United States Attorney Robert James Booth II is prosecuting the case.
View the Indictment View the Plea Agreement# # #
24-7
Rhode Island Woman Sentenced to Federal Prison for Her Role in a Conspiracy to Traffick Drugs to New HampshireRead the Press Release
CONCORD – A Rhode Island woman was sentenced today in federal court in Concord for her role in a conspiracy to distribute fentanyl in New Hampshire, U.S. Attorney Jane E. Young announces.
Maylerin Urena, a/k/a/ Janet, 40, was sentenced by U.S. District Court Judge Steven McAuliffe to 27 months in prison and 3 years of supervised release. On May 10, 2023, she pleaded guilty to one count of conspiracy to distribute fentanyl.
“The distribution of large quantities of drugs from northern Massachusetts into New Hampshire is a persistent problem,” said United States Attorney Jane Young. The “Ronnie and Janet” drug organization had been a substantial contributor to this problem for some time, distributing many kilograms of fentanyl and crack into our state. Today’s sentence shows that the people who operate these organizations will receive substantial punishment for their criminal conduct.”
“Illegal drug distribution ravages the foundations of our families and communities here in New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Let this sentencing serve as an example to those who distribute poisons like fentanyl and crack cocaine, that DEA will aggressively pursue and hold you accountable. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners here in New Hampshire and our solid relationship with the U.S. Attorney’s Office.”
Urena’s husband, Marbin Cruz-Gonzalez, a/k/a “Ronnie” was the leader of the drug organization. Urena’s primary role was to operate the telephones maintained by the organization as a dispatcher to coordinate the meetings between drug customers and drug runners. The defendant also trained other people to work for the organization as dispatchers.
The United States Drug Enforcement Administration and the United States Department of Homeland Security led the investigation. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Marshal Service; the Nashua Police Department; the Manchester Police Department; the New Hampshire State Police; the Rockingham County Sheriff’s Office; the Hudson Police Department; the Hillsborough County Sheriff’s Office; the Bedford Police Department; the Merrimack Police Department; the Keene Police Department; the Goffstown Police Department; the New Hampshire Attorney General’s Drug Task Force; the Massachusetts State Police; the Essex County Sheriff’s Department (Massachusetts); the Methuen Police Department (Massachusetts); the Haverhill Police Department (Massachusetts); the North Andover Police Department (Massachusetts); the Springfield Police Department (Vermont); the Maine State Police; the New Jersey State Police; the Essex County Sheriff’s Office (New Jersey); the Hudson County Prosecutor’s Office (New Jersey); the Edison Police Department (New Jersey); the North Bergen Police Department (New Jersey); the Newark Police Department (New Jersey); the Bloomfield Police Department (New Jersey); the Edgewater Police Department (New Jersey); the Ridgefield Park Police Department (New Jersey); the Teaneck Police Department (New Jersey). Assistant U.S. Attorneys Seth Aframe and Jarad Hodes prosecuted the case.
###
Prominent Lobbyist and Political Consultant Agree to Deferred Prosecution for FARA Violations for Undisclosed Work for Foreign GovernmentRead the Press Release
A Virginia lobbyist and a New Jersey political consultant have entered into Deferred Prosecution Agreements (DPAs) to resolve the government’s investigation into violations of the Foreign Agents Registration Act (FARA) and related offenses.
Barry P. Bennett, 60, of Alexandria, Virginia, owned and operated Avenue Strategies Global LLC, a lobbying and consulting firm in Washington, D.C. Douglas Watts, 73, of Jersey City, New Jersey, is a former presidential campaign consultant who founded and ran a public relations company.
The charges arise from a scheme to wage a lobbying and public relations campaign designed to benefit one of Avenue Strategies’ clients—the government of a foreign country (Country A)—while concealing the foreign government’s connection to the effort. In 2017, Bennett signed a contract for Avenue Strategies to perform lobbying services for the embassy of Country A. As part of his lobbying strategy on behalf of Country A and for and in the interest of Country A, Bennett covertly operated Company A, a limited liability company founded by Watts at Bennett’s direction. As directed by Bennett and managed by Watts, Company A ran a lobbying and public relations campaign designed to cast one of Country A’s rivals in a negative light for its conduct, and thereby to improve Country A’s standing with the U.S. government and public relative to this rival.
Through the DPA, Bennett consented to the filing of a two-count criminal information charging him with a scheme to falsify, conceal, and cover up material facts from the Justice Department’s FARA Unit and with making false statements and material omissions in FARA filings. The information will be dismissed with prejudice after Bennett complies with the DPA’s terms, which include payment of a $100,000 fine, for 18 months.
Through the DPA Watts signed, he consented to the filing of a three-count criminal information charging him with acting as an agent of a foreign principal without registering under FARA and with making false statements to the FBI. The information will be dismissed with prejudice after Watts complies with the DPA’s terms, which include payment of a $25,000 fine, for 12 months.
Country A paid Bennett’s Avenue Strategies $2.1 million between September 2017 and December 2017 for lobbying services, and approximately 27% of those funds (i.e., approximately $773,000) financed the operations of Company A. In return, Company A conducted a social media campaign, published opinion articles in major newspapers, produced a documentary that was distributed through a national television network, sent direct mailings to American citizens, and lobbied Congress and the former president.
Company A took credit for directing 3,000 phone calls to members of the U.S. House of Representatives encouraging them to discontinue U.S. involvement in a coalition of Country A’s rivals. The House of Representatives eventually voted overwhelmingly to “deauthorize” U.S. involvement with the coalition.
Neither Watts nor Company A was registered under FARA.
FARA was enacted in 1938 to counter propaganda and promote transparency and disclosure. The Department of Justice recently described the purpose of the law to Congress as means of ensuring “that the American public and our lawmakers know the source of information that is provided at the behest of a foreign principal, where that information may be intended to influence U.S. public opinion, policy, and laws.”
Bennett’s consulting company, Avenue Strategies, failed to disclose in its FARA filings its creation of Company A. In addition, Avenue Strategies failed to disclose Bennett’s and Avenue Strategies’ affiliation with Company A, Avenue Strategies’ disbursements to Company A, and Watts’ work on behalf of Company A and Country A. These omissions thwarted FARA’s disclosure requirements.
During two separate interviews in February 2020, Watts made false and materially misleading statements to the FBI about his knowledge of Company A’s formation, its purpose and activities, and its connection to Country A.
If the case had gone to trial, the government would have sought to prove that Bennett engaged in a scheme to falsify, conceal, and cover up material facts from the Department of Justice’s FARA Unit. The government also would have sought to prove that Bennett made false statements and material omissions in filings under FARA.
In addition, the government would have sought to prove that Watts acted as an unregistered agent of a foreign principal and made false statements or representations to a department or agency of the United States.
The FBI’s Washington Field Office investigated the case.
Assistant U.S. Attorney Jolie F. Zimmerman for the District of Columbia and Deputy Chief Evan N. Turgeon of the National Security Division’s Counterintelligence and Export Control Section are handling the case, with valuable assistance from Assistant U.S. Attorney Jason McCullough for the District of Columbia.
Bennett DPA Watts DPAProminent Lobbyist and Political Consultant Agree to Deferred Prosecution for FARA Violations for Undisclosed Work for Foreign GovernmentRead the Press Release
WASHINGTON – A Virginia lobbyist and a New Jersey political consultant have entered into Deferred Prosecution Agreements (DPAs) to resolve the government’s investigation into violations of the Foreign Agents Registration Act (FARA) and related offenses.
Barry P. Bennett, 60, of Alexandria, Virginia, owned and operated Avenue Strategies Global LLC, a lobbying and consulting firm in Washington, D.C. Douglas Watts, 73, of Jersey City, New Jersey, is a former presidential campaign consultant who founded and ran a public relations company.
The charges arise from a scheme to wage a lobbying and public relations campaign designed to benefit one of Avenue Strategies’ clients—the government of a foreign country (Country A)—while concealing the foreign government’s connection to the effort. In 2017, Bennett signed a contract for Avenue Strategies to perform lobbying services for the embassy of Country A. As part of his lobbying strategy on behalf of Country A and for and in the interest of Country A, Bennett covertly operated Company A, a limited liability company founded by Watts at Bennett’s direction. As directed by Bennett and managed by Watts, Company A ran a lobbying and public relations campaign designed to cast one of Country A’s rivals in a negative light for its conduct, and thereby to improve Country A’s standing with the U.S. government and public relative to this rival.
Through the DPA, Bennett consented to the filing of a two-count criminal information charging him with a scheme to falsify, conceal, and cover up material facts from the Justice Department’s FARA Unit and with making false statements and material omissions in FARA filings. The information will be dismissed with prejudice after Bennett complies with the DPA’s terms, which include payment of a $100,000 fine, for 18 months.
Through the DPA Watts signed, he consented to the filing of a three-count criminal information charging him with acting as an agent of a foreign principal without registering under FARA and with making false statements to the FBI. The information will be dismissed with prejudice after Watts complies with the DPA’s terms, which include payment of a $25,000 fine, for 12 months.
Country A paid Bennett’s Avenue Strategies $2.1 million between September 2017 and December 2017 for lobbying services, and approximately 27% of those funds (i.e., approximately $773,000) financed the operations of Company A. In return, Company A conducted a social media campaign, published opinion articles in major newspapers, produced a documentary that was distributed through a national television network, sent direct mailings to American citizens, and lobbied Congress and the former president.
Company A took credit for directing 3,000 phone calls to members of the U.S. House of Representatives encouraging them to discontinue U.S. involvement in a coalition of Country A’s rivals. The House of Representatives eventually voted overwhelmingly to “deauthorize” U.S. involvement with the coalition.
Neither Watts nor Company A was registered under FARA.
FARA was enacted in 1938 to counter propaganda and promote transparency and disclosure. The Department of Justice recently described the purpose of the law to Congress as means of ensuring “that the American public and our lawmakers know the source of information that is provided at the behest of a foreign principal, where that information may be intended to influence U.S. public opinion, policy, and laws.”
Bennett’s consulting company, Avenue Strategies, failed to disclose in its FARA filings its creation of Company A. In addition, Avenue Strategies failed to disclose Bennett’s and Avenue Strategies’ affiliation with Company A, Avenue Strategies’ disbursements to Company A, and Watts’ work on behalf of Company A and Country A. These omissions thwarted FARA’s disclosure requirements.
During two separate interviews in February 2020, Watts made false and materially misleading statements to the FBI about his knowledge of Company A’s formation, its purpose and activities, and its connection to Country A.
If the case had gone to trial, the government would have sought to prove that Bennett engaged in a scheme to falsify, conceal, and cover up material facts from the Department of Justice’s FARA Unit. The government also would have sought to prove that Bennett made false statements and material omissions in filings under FARA.
In addition, the government would have sought to prove that Watts acted as an unregistered agent of a foreign principal and made false statements or representations to a department or agency of the United States.
The FBI’s Washington Field Office investigated the case.
Assistant U.S. Attorney Jolie F. Zimmerman for the District of Columbia and Deputy Chief Evan N. Turgeon of the National Security Division’s Counterintelligence and Export Control Section are handling the case, with valuable assistance from Assistant U.S. Attorney Jason McCullough for the District of Columbia.
##
Philadelphia Man Sentenced to over 12 Years in Prison for Distributing Methamphetamine on the Choctaw Indian ReservationRead the Press Release
Jackson, Miss. – A Philadelphia man was sentenced to 146 months in prison for possessing methamphetamine with intent to distribute.
According to court documents, Roger Devonta Stokes, 41, distributed more than 5 grams of methamphetamine in the Pearl River Community of the Mississippi Band of Choctaw Indians in July of 2021.
A federal grand jury indicted Stokes in a two-count indictment involving the distribution of methamphetamine on the Choctaw Indian Reservation. On September 7, 2023, Stokes entered a plea of guilty to one of those counts.
U.S. Attorney Todd W. Gee, Regional Agent in Charge Whitney Woodruff of the Bureau of Indian Affairs, and Special Agent in Charge Brad Byerly of the Drug Enforcement Administration made the announcement.
The case was investigated by the Choctaw Police Department of the Mississippi Band of Choctaw Indians, the U.S. Department of Interior Bureau of Indian Affairs, and U.S. Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Kevin J. Payne and Special Assistant United States Attorney Brian K. Burns.
Philadelphia Man Sentenced to 18 Years in Prison for Drug TraffickingRead the Press Release
CAMDEN, N.J. – A Philadelphia man was sentenced today to 216 months in prison for trafficking methamphetamine and fentanyl in southern New Jersey and Philadelphia, U.S. Attorney Philip R. Sellinger announced.
Glenn Long, 29, of Philadelphia, previously pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to one count of a superseding indictment charging him with conspiring to distribute fentanyl and methamphetamine.
According to documents filed in this case and statements made in court:
Long conspired with other individuals who acted as “runners” or “couriers” for a drug-trafficking organization that distributed methamphetamine and fentanyl. Drug customers would call Long to place orders for drugs, and the runners would deliver the drugs. Long admitted that on a date on which law enforcement agents executed search and arrest warrants in connection with the investigation into his conduct, Long’s conspirators possessed more than 2,700 grams of methamphetamine and 400 grams of fentanyl for the conspiracy. Long participated in this conspiracy while he was a fugitive on a federal drug trafficking indictment in the Eastern District of Pennsylvania, to which he has since pleaded guilty.
In addition to the prison term, Judge Hillman sentenced Long to five years of supervised release.
U.S. Attorney Sellinger credited special agents with the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation leading to today’s sentencing. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania; Drug Enforcement Administration, Philadelphia Division; U.S. Department of Homeland Security – Homeland Security Investigations; U.S. Marshals Service; FBI; Bensalem Police Department; Berlin Borough Police Department; Berlin Township Police Department; Bucks County District Attorney’s Office; Camden County Prosecutor’s Office; Clayton Police Department; Delaware County District Attorney’s Office Narcotics Task Force; Deptford Township Police Department; Gloucester County Prosecutor’s Office; Gloucester Township Police Department; New Jersey State Police; New Jersey National Guard Counter Drug Task Force; Pennsylvania State Police; Pennsville Police Department; and Winslow Township Police Department for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
New Rochelle Man Pleads Guilty to Bronx ShootingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that TYRIEK SKYFIELD pled guilty today to one count of illegally possessing ammunition after a felony conviction. The charge of conviction arises from SKYFIELD’s firing two shots at an individual (“Victim-1”), one of which hit Victim-1, on a residential street in the Bronx on July 22, 2023. SKYFIELD pled guilty before U.S. District Judge Lewis J. Liman and is scheduled to be sentenced on May 7, 2024.
U.S. Attorney Damian Williams said: “On a summer night in the Bronx last July, Tyriek Skyfield fired two shots from a handgun at an individual from close range. One shot struck the victim in the foot, injuring him. Today’s plea underscores an important priority of my Office: We will not tolerate gun violence in the Southern District of New York.”
According to court filings and statements made in court proceedings:
On or about July 22, 2023, at approximately 9:56 p.m., TYRIEK SKYFIELD fired two shots with a handgun at Victim-1 near the intersection of Needham Avenue and East 223rd Street in the Bronx, New York. Surveillance video from a building overlooking the scene showed SKYFIELD brandishing a firearm at Victim-1 seconds before shooting at him.
Surveillance video then captured SKYFIELD fleeing down Needham Avenue and onto East 222nd Street. During a canvass of the scene of the shooting on the following day, officers from the New York City Police Department recovered a 9mm Luger shell casing from one of the gunshots in the yard of a residential building near the shooting.
SKYFIELD was not permitted to possess ammunition because of prior felony convictions.
* * *
TYRIEK SKYFIELD, 31, of New Rochelle, New York, pled guilty to one count of possession of ammunition after a felony conviction, which carries a maximum sentence of 15 years in prison.
The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the New York State Police and the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York, and he thanked the New York City Police Department for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Adam Z. Margulies and Joseph H. Rosenberg are in charge of the prosecution.
New Orleans Woman Pleads Guilty to Possessing Four Cars Stolen from Norfolk Southern RailyardRead the Press Release
NEW ORLEANS, LOUISIANA – DARIAL MAYE, age 25, a resident of New Orleans, pleaded guilty on January 2, 2024 before U.S. District Judge Jay C. Zainey to four counts of possessing goods stolen from an interstate shipment, in violation of Title 18, United States Code, Section 659.
According to court documents, MAYE participated in vehicle thefts from the Norfolk Southern Automotive Distribution Facility on two separate occasions in March of 2023. During those thefts, MAYE and others stole a 2023 Ford Explorer King Ranch, a 2023 Ford F-150 Raptor Crew Cab 4x4, a 2023 Ford F-150, and a 2023 Ford Bronco Sport Outer Banks from the Facility. The cars were moving as part of interstate shipments of freight and destined for Ford dealerships in Louisiana, Alabama, and Mississippi when MAYE and her accomplices stole them. During the following week, MAYE was captured on surveillance video driving or riding as a passenger in all four vehicles.
As to each count of possessing the stolen cars, MAYE faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, up to three years of supervised release and a mandatory $100 special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Orleans Man Pleads Guilty to Murder, and Drug, Firearm, and Hobbs Act Robbery ConspiraciesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that on December 4, 2023 LARRY ROWEL, a/k/a “Lah, a/k/a “Lah Hood,” pled guilty to murder, as well as to various violations of the Federal Controlled Substances Act, the Federal Gun Control Act, and Hobbs Act robbery. Specifically, ROWEL pled guilty before U.S. District Judge Jane Triche Milazzo to Counts 1, 2, 3 and 4 of the superseding bill of information pending against him.
Count 1 charged ROWEL with conspiracy to distribute and possess with the intent to distribute, a quantity of cocaine hydrochloride and marijuana, in violation of Title 21, United States Code, Sections 84l(a)(l), (b)(l )(C), (b)(1)(D), and 846. For this charge, ROWEL faces up to 20 years imprisonment, a fine of up to $1,000,000.00, at least three years of supervised release, and a mandatory $100.00 special assessment fee. Count 2 charged ROWEL with conspiracy to possess firearms in furtherance of a drug trafficking crime and crime of violence, in violation of Title 18, United States Code, Section 924(o). For this charge, ROWEL faces up to 20 years in prison, a fine of up to $250,000.00, up to three years of supervised release, and a mandatory $100.00 special assessment fee .
Count 3 charged ROWEL with causing death through the use of a firearm, stemming from his role in a December 2019 murder, in violation of Title 18, United States Code, Section 924(j)(1). For this charge, ROWEL faces up to life in prison, a fine of up to $250,000.00, up to five years of supervised release, and a mandatory $100.00 special assessment fee.
Count 4 charged ROWEL with conspiracy to commit Hobbs Act Robberies, in violation of Title 18, United States Code, Section 1951. For this charge, ROWEL faces up to 20 years in prison, a fine of up to $250,000.00, up to three years of supervised release, and a mandatory $100.00 special assessment fee.
According to court documents, in 2019, the Federal Bureau of Investigation investigated a group for committing various violent crimes and illegal drug trafficking, primarily in New Orleans East and the Ninth Ward section of New Orleans. Thereafter, ROWEL, and nine others, were indicted, for conspiring to possess firearms, traffic drugs and commit armed robberies of drug dealers. ROWEL’S plea documents reveal he was a drug dealer who possessed firearms, robbed other drug dealers, and participated in a December 2019, murder.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, and the St. Bernard Sheriff’s Office. Assistant United States Attorneys Maurice Landrieu of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crime Unit, are in charge of the prosecution.