Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
13 February 2024
Government Employee Indicted for Obstruction and False StatementsRead the Press Release
A Plano man has been charged with obstruction and making a false statement, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Fredrick Antonio Waters, 47, was indicted last week on one count each of obstruction of official proceeding and false statement. He was arrested Thursday and made his initial appearance Friday before U.S. Magistrate Judge Renee Harris Toliver.
According to the indictment, on February 8, 2022, Mr. Waters disclosed to an individual that she was the target of a criminal investigation. When a Special Agent with Homeland Security Investigations asked Mr. Waters about disclosing the information he responded by saying, “No I was looking up an humanitarian case and typed in the wrong Anumber.” That statement was false because Mr. Waters knew he deliberately typed an Alien number issued to a specific individual to find out if she appeared as a subject in any Department of Homeland Security investigative system.
An indictment is merely an allegation of criminal conduct, not evidence. Mr. Waters is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 25 years in federal prison.
The Homeland Security Investigations – Office of Professional Responsibility – El Paso office conducted the investigation. Assistant U.S. Attorney Mary Walters is prosecuting the case.
Former enlistee indicted for theft from U.S. ArmyRead the Press Release
HOUSTON – A 26-year-old Houston man has been charged with selling stolen government property, announced U.S. Attorney Alamdar S. Hamdani.
Tamoshion Rucker is a former U.S. Army enlistee who allegedly stole and attempted to sell Image Intensifier Tubes (IITs) for personal gain, according to the indictment.
The charges allege the investigation began in December 2022 when authorities attempted to retrieve stolen ITTs that were posted for sale on eBay.
These IITs were allegedly manufactured to fulfill government contracts which are not available or authorized for sale to the public.
As stated in the indictment, to safeguard this technology and equipment, IITs require demilitarization at the end-of-life cycle use. The instructions allegedly involve striking them with a ball peen hammer, ensuring destruction and for the fragments to be disposed of in accordance with hazardous waste guidelines.
IITs cannot be resold or otherwise transferred to anyone after they have been used, according to the charges.
He was permitted release upon posting bond pending further criminal proceedings.
If convicted, Rucker faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The FBI and Army Criminal Investigative Division conducted the investigation with assistance from Texas Department of Public Safety. Assistant U.S. Attorney Carolyn Ferko is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former Tennessee Department of Corrections Officer Sentenced for Writing False Report to Cover up Another Officer’s Use of Excessive ForceRead the Press Release
Memphis, TN – A former Tennessee Department of Corrections (TDOC) tactical officer, Sebron Hollands, 33, was sentenced to 15 months in prison and two years of supervised release for writing a false report in an effort to cover up another officer’s use of excessive force on an inmate. He previously pled guilty to the offense on Oct. 2, 2023. His co-defendant, former TDOC tactical officer Javian Griffin, pled guilty on Oct. 11, 2023, to using excessive force against the inmate.
“The defendant pledged to protect and serve but instead he abused his authority as a corrections officer to try to cover up another officer’s use of excessive force,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence sends a clear message that the Justice Department will hold accountable any official who obstructs a federal civil rights investigation.”
"Our country’s commitment to protecting its citizens’ civil rights doesn’t end at the prison gates,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “The defendant in this case violated public trust and used his position of authority to make the entire facility – and the inmates in his care – less safe. This office’s National Security and Civil Rights Unit will continue to prioritize the prosecution of public employees who violate the civil rights of others."
“When correctional officers abuse their authority, it not only violates our civil rights laws, it undermines the criminal justice system,” said Special Agent in Charge Douglas DePodesta of the FBI Memphis Field Office. “The FBI makes it a priority to bring to justice any law enforcement officer who violates the civil rights of those they are sworn to protect.”
According to court documents, Hollands provided false information in his official report about Griffin’s use of unlawful force on an inmate. Hollands was present when Griffin, without justification, punched an inmate in the head, breaking the inmate’s jaw. The inmate did not resist or pose a threat justifying the use of force. Then, after the incident, Hollands provided false information in his official use of force report in order to obstruct the investigation of the incident.
The FBI Memphis Field Office investigated the case.
Assistant U.S. Attorney David Pritchard for the Western District of Tennessee and Trial Attorneys Matthew Tannenbaum and Andrew Manns of the Justice Department’s Criminal Section prosecuted the case.
Former Tennessee Department of Corrections Officer Sentenced for Writing False Report to Cover up Another Officer’s Use of Excessive ForceRead the Press Release
A former Tennessee Department of Corrections (TDOC) tactical officer, Sebron Hollands, 33, was sentenced to 15 months in prison and two years of supervised release for writing a false report in an effort to cover up another officer’s use of excessive force on an inmate. He previously pleaded guilty to the offense on Oct. 2, 2023. His co-defendant, former TDOC tactical officer Javian Griffin, pleaded guilty on Oct. 11, 2023, to using excessive force against the inmate.
“The defendant pledged to protect and serve but instead he abused his authority as a corrections officer to try to cover up another officer’s use of excessive force,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence sends a clear message that the Justice Department will hold accountable any official who obstructs a federal civil rights investigation.”
“Our country’s commitment to protecting its citizens’ civil rights doesn’t end at the prison gates,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “The defendant in this case violated public trust and used his position of authority to make the entire facility – and the inmates in his care – less safe. This office’s National Security and Civil Rights Unit will continue to prioritize the prosecution of public employees who violate the civil rights of others.”
“When correctional officers abuse their authority, it not only violates our civil rights laws, it undermines the criminal justice system,” said Special Agent in Charge Douglas DePodesta of the FBI Memphis Field Office. “The FBI makes it a priority to bring to justice any law enforcement officer who violates the civil rights of those they are sworn to protect.”
According to court documents, Hollands provided false information in his official report about Griffin’s use of unlawful force on an inmate. Hollands was present when Griffin, without justification, punched an inmate in the head, breaking the inmate’s jaw. The inmate did not resist or pose a threat justifying the use of force. Then, after the incident, Hollands provided false information in his official use of force report in order to obstruct the investigation of the incident.
The FBI Memphis Field Office investigated the case.
Assistant U.S. Attorney David Pritchard for the Western District of Tennessee and Trial Attorneys Matthew Tannenbaum and Andrew Manns of the Civil Rights Division’s Criminal Section prosecuted the case.
Former BOP Prison Guard Sentenced to 18 Months for Accepting a BribeRead the Press Release
TUCSON, Ariz. – Heather Alissa Neff, 38, of Lee’s Summit, Missouri, was sentenced last week by United States District Judge Scott H. Rash to 18 months in prison, and 36 months of supervised release. Neff pleaded guilty to Accepting a Bribe by a Public Official on August 31, 2023.
From 2016 through June 2019, Neff worked as a corrections officer in the Bureau of Prisons facility at FCI Safford where she regularly interacted with inmates. In early 2019, Neff entered into an inappropriate sexual relationship with an inmate incarcerated at FCI Safford. Neff received cash in exchange for a stream of benefits to the inmate, including sexual contact with the inmate; introducing contraband into the prison, which included nutritional supplements, loose tobacco, hygiene items, and rum; and assisting the inmate in circumventing a security feature of the prison by taking mail from the inmate out of the prison and inserting it into the U.S. mail on his behalf. Neff also accessed the BOP SENTRY system on behalf of the inmate and provided him with non-public information regarding other inmates. As a part of the plea, Neff acknowledged that one of the inmates she provided information about was later assaulted.
Department of Justice Office of the Inspector General conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson handled the prosecution.
CASE NUMBER: CR-23-00204-SHR-BGM
RELEASE NUMBER: 2024-017_Neff# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Federal Investigation of GBEN Pump-and-Dump Scheme Results in Conviction of Eight Men and Recovery of over $400,000 for Victim RestitutionRead the Press Release
CLEVELAND - United States Attorney Rebecca C. Lutzko announced the results of a federal investigation involving eight men that were charged in two cases with participating in a pump-and-dump scheme designed to inflate the stock price of Global Resources, Inc. (“GBEN”), a public company that purportedly planned to bring hemp-infused wine to market. All the defendants pleaded guilty and were sentenced to a combined total of 165 months of imprisonment.
The defendants charged and convicted were Thomas Collins, 50, of Weatherford, Texas; Patrick Thomas, 50, of Carrollton, Texas; Hughe Duwayne Graham, 66, of Riverside, California; Brian Kingsfield, 54, of Costa Mesa, California; Tyler Paulson, 62, of Canyon Lake, California; Gary Kouletas, 47, of Hasbrouck Heights, New Jersey; and Scott Levine, 45, of Delray Beach, Florida.
According to court documents, from February 2014 to August 2020, the defendants conspired to defraud investors by issuing millions of shares to themselves at little to no cost, artificially controlling the price and volume of shares using manipulative trading techniques, and obfuscating the true sellers of stock, all while selling the stock at fraudulently inflated prices to unsuspecting victims in Ohio and throughout the country.
As part of the scheme, Levine used his position to facilitate the conspiracy’s ability to execute trades of GBEN shares between company insiders and investors who had been solicited to buy blocks of free-trading stock. Kouletas and others operated PAG Group, which was used to enter into secret agreements with company insiders to sell free-trading stock on their behalf for a portion of the proceeds. Members of the conspiracy also knowingly made false statements and omissions when they solicited investors to purchase restricted GBEN stock, including concealing the fact that the salesman’s compensation was up to 40% of the victim’s investment.
As a result of the defendants’ combined fraudulent conduct, nearly 50 identified investors lost more than $2 million after purchasing worthless restricted and free-trading stock.
The Court determined each defendant’s sentence after a review of factors unique to each case and defendant, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses, and the nature of the crimes. The defendants were sentenced to the following terms of imprisonment: Thomas Collins, 37 months; Patrick Thomas, 18 months; Hughe Duwayne Graham, 12 months and 1 day; Brian Kingsfield, 37 months; Gary Kouletas, 43 months; and Scott Levine, 18 months. The defendants were also ordered to pay restitution to the identified victim-investors. So far, the government has recovered over $400,000, which the Clerk of Court will distribute to victims for restitution.
The investigation was conducted by the Federal Bureau of Investigation, Cleveland Division. The cases were prosecuted by Assistant United States Attorney Alejandro A. Abreu.
Federal Grand Jury Indicts Marshall County Woman for Wire FraudRead the Press Release
Paducah, KY – A federal grand jury in Paducah returned an indictment today charging a Marshall County woman with six counts of wire fraud.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Sheriff Matt Hilbrecht of the Marshall County Sheriff’s Office made the announcement.
According to the indictment, from May 2020 to May 2023, Amanda S. Robertson, 33, used her position as a bookkeeper to unlawfully obtain funds and services totaling over $1,000,000 from her employer’s account. By accessing the company’s bank accounts, she scheduled unauthorized electronic payments and issued company checks to pay her personal expenses.
Robertson will make her initial appearance at a future date before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, Robertson faces a maximum sentence of 120 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the FBI and the Marshall County Sheriff’s Office.
Assistant U.S. Attorney Raymond McGee, of the U.S. Attorney’s Paducah Branch Office, is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Domestic Call Leads to 163 Months in Federal Prison for Convicted FelonRead the Press Release
Man Illegally Possessed Machinegun Conversion Device, Firearm, and Methamphetamine for Distribution
OKLAHOMA CITY – TRAVELLE LAMONT LATHAN, 30, of Oklahoma City, has been sentenced to serve 163 months in federal prison for illegally possessing a firearm after a previous felony conviction, possession of methamphetamine with intent to distribute, and possession of a machinegun, announced U.S. Attorney Robert J. Troester.
According to public record, Oklahoma City Police Officers responded to a domestic violence 911 call in November 2022. During the investigation, officers recovered more than 195 grams of methamphetamine, several rounds of ammunition, and a handgun from Lathan’s apartment. An agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives determined the firearm had been modified with an illegal machinegun conversion device, commonly known as a “switch”, which converted the semi-automatic weapon into a fully automatic machinegun.
Public record further reflects that Lathan holds multiple prior felony convictions, including possession of marijuana with intent to distribute and attempting to elude an officer in Cleveland County District Court case number CF-2018-1045, and Trafficking in Drugs and Unlawful Use of a Weapon in St. Louis, Missouri, case number 1722-CR-1881-01.
On December 7, 2022, a federal grand jury returned a five-count Indictment against Lathan, charging him with being a felon in possession of a firearm, possession of methamphetamine with intent to distribute, possession of a firearm in furtherance of a drug-trafficking crime, possession of a machinegun, and felon in possession of ammunition.
On May 5, 2023, Lathan pleaded guilty to counts 1, 2, and 4 of the Indictment, and admitted to possessing methamphetamine which he intended to distribute, and the handgun which had been modified with a switch to operate as a machinegun.
At the sentencing hearing, U.S. District Judge Scott L. Palk sentenced Lathan to serve 163 months in federal prison. In announcing his sentence, Judge Palk noted the significance of Lathan possessing the machinegun along with a 50 round drum and a pistol-caliber ballistic vest and also took into account the domestic assault.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Oklahoma City Police Department. Assistant U.S. Attorney Daniel Gridley prosecuted the case.
This case is part of “Operation 922” and “Project Switch Off”, the Western District of Oklahoma’s local implementation of Project Safe Neighborhoods, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. “Operation 922” prioritizes prosecution of federal firearms violations connected to domestic violence. “Project Switch Off” targets illegal machinegun conversion devices, commonly known as “switches”, to address the significant danger these illegal devises present, and to remove them from our streets. For more information about Project Safe Neighborhoods, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for additional information.
DeSoto County Residents Arrested for Payroll Protection FraudRead the Press Release
Oxford, Mississippi – Three DeSoto County residents were arrested today on criminal charges related to their involvement in a conspiracy to fraudulently obtain government funds intended to protect employees of endangered businesses during the COVID pandemic through the Payroll Protection Program of the U.S. Small Business Administration.
According to court documents, Zipora Hudson, Montreal Hudson, and Deandre Jones, all of Olive Branch, are charged with conspiracy to commit wire fraud and wire fraud for their involvement in the fraudulently application of PPP loans. The defendants are charged with conspiracy to commit money laundering and money laundering by participating in wire transfers involving proceeds of the fraud scheme.
If convicted, they face a maximum penalty of 30 years for the conspiracy and wire fraud violations and 20 years for the money laundering charges. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The alleged scheme in the instant case was initially uncovered during the course of a civil investigation. The federal investigative agencies that assisted with this investigation emphasized their ongoing commitment to hold accountable those citizens who seek to fraudulently and unfairly profit from federal pandemic relief programs.
The United States Attorney’s Office for the Northern District of Mississippi is prosecuting the case. The case was investigated by the Internal Revenue Service Criminal Investigation Division.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dayton man sentenced to 11 years in prison for trafficking fentanyl, methamphetamineRead the Press Release
DAYTON, Ohio – Dlaquan Cantrell, 33, of Dayton, was sentenced in U.S. District Court today to 132 months in prison for trafficking fentanyl and methamphetamine.
According to court documents, in fall 2022, Cantrell sold narcotics to an undercover officer on four occasions. Prior to the meetups, Cantrell used FaceTime, voice calls and text messages to set up the drug transactions. For example, in one FaceTime call, Cantrell opened a shoe box and showed the undercover officer a large amount of drugs and cash.
Cantrell sold drugs in the parking lots of local establishments like Applebee’s and Kohl’s.
When law enforcement executed a search warrant at a residence at which Cantrell was staying, officers discovered hundreds of grams of marijuana hidden in a Lego box in a child’s room, as well as fentanyl, a stolen, loaded firearm and magazine attachment. Cantrell also hid $8,000 in cash inside a child’s teddy bear.
The fentanyl Cantrell sold was mixed with Xylazine.
Cantrell was arrested in October 2022 and pleaded guilty in September 2023.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Cheryl Mimura, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and members of the Warren County Drug Task Force announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorney Kelly K. Rossi is representing the United States in this case.
# # #
Cryptocurrency futures market CEO charged with violating Bank Secrecy ActRead the Press Release
MIAMI – On Feb. 12, the Chief Executive Officer (CEO) of Digitex Futures Exchange (Digitex Futures), was charged in federal court with willfully causing Digitex Futures to violate the Bank Secrecy Act by failing to establish and implement an anti-money-laundering program.
According to the allegations in the indictment, from January 2018 through April 2022, Adam Colin Todd, 50, a former resident of Miami, Florida, illegally operated Digitex Futures, an online futures exchange company, as an unregistered futures commission merchant in the United States. As alleged in the indictment, Todd sold and offered futures contracts to Digitex Futures’ customers. Allegedly, Todd willfully failed to establish, implement, and maintain an adequate anti-money-laundering program, including an adequate know-your-customer program. The indictment further alleges that Todd publicly stated that he refused to implement know-your-customer policies for Digitex Futures.
Todd made his initial appearance in federal court. If convicted, Todd faces up to five years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines along with other mitigating, aggravating, and statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, made the announcement.
FBI Miami investigated the case. Assistant U.S. Attorney Trevor Jones is prosecuting it.
An information contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20478.
###
Convicted Murderer Sentenced to 110 Months in Prison for New Gun CrimeRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a convicted murderer caught with a firearm in St. Louis to 110 months in prison.
Lucky B. Miner, 51, was in a stolen Hyundai stopped by St. Louis Metropolitan Police Department officers on July 20, 2022, amid a rash of thefts of Kias and Hyundais. The vehicle had no rear license plate and a heavily damaged steering column allowing it to be driven without a key. When Miner got out of the vehicle, officers recognized him from prior interactions. They called to Miner, who walked away and up a ramp towards a home, taking a chrome pistol out of his waistband. After first trying and failing to open the home’s door, Miner dropped the gun. He then began repeatedly hitting the door with his right shoulder to force it open. Police detained Miner before he could succeed. The driver of the Hyundai had a .22-caliber revolver in her purse.
Miner pleaded guilty in U.S. District Court in St. Louis in November to one count of being a felon in possession of a firearm.
In 1998, Miner was sentenced to 15 years in prison after being found guilty of second-degree murder at a bench trial in St. Louis Circuit Court.
This case was investigated by the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Jason Dunkel prosecuted the case.
Convicted Felon Pleads Guilty to Unlawfully Possessing a Glock That Was Discovered After He Crashed a Stolen CarRead the Press Release
WASHINGTON – Jordan Tyler Alexander, 20, of Washington D.C., pleaded guilty today to illegal possession of a firearm, a charge that resulted after police discovered a Glock 27 in a stolen car that had crashed following a high-speed chase in a vehicle that the defendant was driving. The plea agreement was announced by U.S. Attorney Matthew M. Graves, Chief Malik Aziz of the Prince George’s County Police Department, Chief Pamela Smith of the Metropolitan Police Department (MPD), and Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Alexander, a previously convicted felon, pleaded guilty in U.S. District Court in the District of Columbia to a count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term of over one year. The sentencing date is pending. Alexander also faces trial for armed robbery and weapons counts in Prince George’s County, Maryland.
According to court documents, a Prince George’s County police officer was on patrol at 2 a.m. on August 9, 2023, when he watched a white Honda Accord pull into the parking lot of a convenience store in Suitland, MD, and then immediately leave. The officer suspected that the vehicle drove away after spotting his marked police cruiser. The police officer later saw the Honda pull into the parking lot of a tobacco store. The officer ran the vehicle’s license plate number and learned the car had been stolen in an armed robbery on July 24, 2023, in Southeast Washington, D.C.
The officer followed the white Honda and witnessed it run a red light. The officer switched on his flashers and siren. The white Honda sped off. The officer received authorization to pursue the Honda and followed it into the District at speeds that reached 100 m.p.h. before the white Honda crashed into a guardrail at I-295 Northbound near the exit for Minnesota Ave., NE.
Alexander jumped out of the driver’s side door and began running down I-295 as cars drove past him. A second individual, who was sitting in the front passenger side of the vehicle jumped out as well and ran away from the highway and into the grass. The officer exited the vehicle and began chasing the defendant. As the defendant was running, he ran towards a vehicle on I-295 and attempted to enter the vehicle. The operator of that vehicle was an off-duty law enforcement agent who was still in uniform. The defendant then continued running down the street. As the police officer ran past the agent’s vehicle, the agent offered to help and the officer jumped into the front passenger seat of the vehicle. The agent caught up to the fleeing Alexander and maneuvered in front of him. The officer exited the vehicle and Alexander subsequently gave up and was arrested.
Inside the crashed white Honda, investigators discovered, in plain view, a Glock 27, 40 caliber handgun with an extended magazine on the driver’s side floorboard. Next to the firearm was a cell phone. On the front passenger seat, there was an additional black Glock 22, 47 caliber handgun lying in plain view. The Glock on the floorboard was loaded with 17 bullets and had one in the chamber.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Alexander has been held since Aug. 10, 2023.
This case was investigated by the Prince George’s County Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives Washington Field Division, and the Metropolitan Police Department as part of Project Safe Neighborhood
The case is being prosecuted by Assistant U.S. Attorney Shehzad Akhtar with valuable help provided by paralegal Karla Nunez.
Chinese Nationals Sentenced for Trafficking Counterfeit Gift Cards to BellevilleRead the Press Release
EAST ST. LOUIS, Ill. – A U.S. District judge sentenced two Chinese nationals to more than 12 months imprisonment for their involvement in a gift card scheme directed at Target shoppers across the Midwest.
Hongying Wang, 53, and Guangwei Gao, 38, pleaded guilty to one felony count of using and trafficking in a counterfeit access device. The pair have been incarcerated since Jan. 21, 2023, and so have served their full prison time.
“The defendants placed fake gift cards onto sales racks with the intention of stealing the loaded funds once purchased by patrons,” said U.S. Attorney Rachelle Aud Crowe. “The investigation took a coordinated effort, and I commend the law enforcement officials contributed to this case.”
According to court documents, Wang, Gao, or others working with them retained the access numbers to 6,100 gift cards with intent to place the altered gift cards on the sales racks at Target. Once a gift card was loaded with funds by an unsuspecting patron, the fraudsters would have the codes needed to steal the funds.
In January 2023, a Target security officer observed Wang and Gao placing gift cards onto the racks in the Belleville store for customers to purchase. Upon further review, the gift cards were altered with the codes scratched off and covered by stickers to appear untouched.
“The gift card scheme concocted by these two defendants had the potential to steal money from anyone,” said ISP Director Brendan F. Kelly. “ISP special agents will thoroughly investigate cases to hold people accountable and protect the public.”
In addition to Belleville, the following Target locations were knowingly affected by the scheme: Albuquerque, New Mexico; Norman, Oklahoma; Edmond, Oklahoma; Liberty, Missouri; Independence, Missouri; St. Peters, Missouri; Town and Country, Missouri; and Brentwood, Missouri.
Homeland Security Investigations and the Illinois State Police contributed to the investigation, and Assistant U.S. Attorney Peter T. Reed prosecuted the case.
Chicago Consultant Convicted of Federal Tax OffensesRead the Press Release
CHICAGO — A Chicago consultant has been convicted on federal tax offenses for underreporting and failing to file federal income taxes.
The jury in U.S. District Court in Chicago on Monday convicted ANNAZETTE COLLINS, 61, of Chicago, on four tax counts, including two counts of willfully filing a false individual income tax return, one count of willfully failing to file a corporate income tax return, and one count of willfully failing to file an individual income tax return. The jury acquitted Collins on two other tax counts.
U.S. District Judge Jorge L. Alonso set sentencing for June 21, 2024. Each felony count of filing a false individual income tax return is punishable by up to three years in federal prison. The misdemeanor counts of willfully failing to file individual or corporate income tax returns each carry a maximum sentence of one year in federal prison.
Evidence presented at trial revealed that Collins willfully filed a false individual tax return for the calendar years 2014 and 2015, and willfully failed to file an individual income tax return for the calendar year 2016. Collins also willfully failed to file a corporate income tax return for the calendar year 2016 on behalf of her consulting and lobbying business, Chicago-based Kourtnie Nicole Corp. Prior to operating her consulting business, Collins served in the Illinois General Assembly as a Representative and Senator.
The conduct for which Collins was convicted resulted in a federal tax loss of approximately $86,000.
The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Michelle Parthum and Amarjeet S. Bhachu.
Chelsea Sunn Sentenced for Defrauding Former EmployerRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Chelsea Sunn, 32, of Hartford, Vermont, was sentenced yesterday in United States District Court in Burlington to two years of probation following Sunn’s guilty plea to a charge of wire fraud. U.S. District Judge William K. Sessions III ordered that Sunn pay restitution in the amount of $75,000.
On July 7, 2023, the United States Attorney filed a one-count information charging Sunn with wire fraud. Sunn pleaded guilty to that information in August 2023. According to the information, beginning in 2016 and continuing until April 2020, Sunn, who was then known as Chelsea Roy, was employed by Blakeman’s Towing and Recovery, a vehicle towing and roadside assistance business in Tunbridge. Sunn was hired as a full-time office worker but later converted to part-time employment. Sunn was compensated on an hourly basis that included time and a half pay for claimed overtime work. Among other duties, Sunn handled Blakeman’s billing and payroll.
According to the information, beginning no later than December 2018 and continuing at least until March 2020, Sunn defrauded Blakeman’s Towing and Recovery by falsely inflating the hours she reportedly worked. This caused Blakeman’s to pay Sunn tens of thousands of dollars beyond her authorized compensation.
In the course of defrauding Blakeman’s Towing and Recovery, Sunn used the interstate wire communication system to report her fraudulently-inflated work hours, and caused Blakeman’s to make electronic direct deposits of fraudulently-obtained funds into Sunn’s bank account in Vermont.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the United States Secret Service.
The prosecutor is Assistant U.S. Attorney Gregory Waples. Sunn is represented by David Kirby, Esq.
Brownsburg Armed Career Criminal Convicted After Illegally Possessing Firearms and Selling them to an Indianapolis Pawn ShopRead the Press Release
INDIANAPOLIS- A federal jury has found Jason Compliment, 42, of Brownsburg, Indiana, guilty of unlawful possession of a firearm by a convicted felon following a two-day trial.
According to court documents and evidence introduced at trial, on July 16, 2022, the defendant sold three firearms to a north Indianapolis pawnshop for $725. Video surveillance footage captured him selling the firearms and receiving the pawn ticket in his own name.
The jury also found that the defendant was an Armed Career Criminal because of his numerous prior felony convictions in Hendricks and Marion Counties—including eight burglaries, resisting law enforcement, and possession of methamphetamine. In one prior case, the defendant burglarized a church and stole funds meant for the Dave Thomas Foundation for Adoption. Each one of these previous felony convictions prohibit the defendant from ever legally possessing a firearm again.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and IMPD investigated this case. U.S District Court Judge James P. Hanlon presided over the trial and will impose sentence at a later date. The defendant faces fifteen years up to life in federal prison.
U.S. Attorney Zachary A. Myers, of the Southern District of Indiana, thanked Assistant United States Attorneys Jeremy C. Fugate and Bradley A. Blackington, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
###
Apache Corporation to Pay $4 Million and Reduce Unlawful Air Pollution from Oil and Gas Wells in New Mexico and Texas, Eliminating More Than 10,000 Tons of Harmful Air Pollutants AnnuallyRead the Press Release
Apache Corporation (Apache) has agreed to pay $4 million in civil penalties and undertake projects expected to cost at least $5.5 million to ensure 422 of its oil and gas well pads in New Mexico and Texas comply with state and federal clean air regulations and offset past illegal emissions.
Apache’s agreement settles a civil suit – filed jointly by the United States, on behalf of the Environmental Protection Agency (EPA), and the New Mexico Environment Department (NMED) – alleging that Apache failed to comply with federal and state requirements to capture and control air emissions from 23 of its oil and gas production operations in New Mexico and Texas. EPA and NMED identified the alleged violations through field investigations and repeated flyover surveillance conducted in 2019, 2020 and 2022.
Compliance with this robust settlement will result in annual reductions of more than 9,650 tons of volatile organic compounds (VOCs) and 900 tons of methane, which equates to more than 25,000 tons of carbon dioxide (CO2). VOCs are a key component in the formation of ground-level ozone or smog, which irritates lungs, exacerbates diseases including asthma and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
“Today’s settlement will ensure compliance at hundreds of oil and gas facilities across New Mexico and Texas,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Under the settlement, over 400 Apache facilities will be required to take extensive steps to reduce emissions of volatile organic compounds – which contribute to smog – as well as methane gas, which is a significant contributor to climate change.”
“Robust enforcement of Clean Air Act violations at oil and gas facilities protects communities from harmful smog and reduces methane emissions that are major contributors to global climate change,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Today’s agreement demonstrates EPA’s commitment to working with our state partners to tackle climate change and improve air quality for everyone living in the United States.”
“Noxious pollutants directly threaten the health of neighboring communities while propelling our world toward climate disaster,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “I applaud the tireless efforts of the Department of Justice’s Environment and Natural Resources Division, the U.S. EPA and the NMED to protect our lungs and our earth. Environmental justice is a top priority for the Department of Justice and the U.S. Attorney’s Office for the District of New Mexico.”
“This settlement shows that oil and gas operators deserve greater scrutiny because too many are failing to comply with federal and state rules,” said New Mexico Environment Cabinet Secretary James Kenney. “As a result, bad actors will cause greater federal and state regulation of the entire oil and gas industry as ozone levels rise and public health suffers.”
The $4 million fine outlined in the settlement will be shared equally by the United States and the State of New Mexico, with New Mexico’s portion going to the state’s general fund. The settlement document (consent decree) was filed together with the complaint in the U.S. District Court for the District of New Mexico and requires the company to take numerous steps to ensure that 422 well pads covered by the consent decree and located in New Mexico and Texas are operated lawfully.
In addition to the $4 million fine, Apache will also spend at least $4.5 million to implement extensive design, operation, maintenance and monitoring improvements, including installing new tank pressure monitoring systems that will provide advance notification of potential emissions and allow for immediate response action by the company. Apache will also spend over $1 million to offset the harm caused by the alleged violations by replacing, on an accelerated schedule, more than 400 pollutant-emitting pneumatic devices with non-emitting devices.
Pound for pound, methane is approximately 28 times more powerful than carbon dioxide in terms of its impact on global warming. Accordingly, a reduction of 900 tons of annual methane reductions equates to more than 25,000 tons of carbon dioxide (CO2) and is akin to eliminating the use of more than 2.5 million gallons of gasoline annually. Greenhouse gases from human activities are a primary cause of climate change and global warming. This enforcement settlement furthers EPA’s commitment to deliver public health protections against climate-impacting pollution and other pollutants for communities across America and helps deliver on EPA’s top commitment in its strategic plan, which is to tackle the climate crisis.
The Clean Air Act requires the EPA to set National Ambient Air Quality Standards (NAAQS) for criteria pollutants that are considered harmful to public health and the environment. Ozone is a criteria pollutant that is created when oxides of nitrogen (NOx) and VOCs react in the atmosphere. VOCs and NOx are emitted by oil and gas production facilities, such as those operated by Apache. During the timeframes of Apache’s alleged violations, air quality monitors in the relevant counties in New Mexico registered rising ozone concentrations exceeding 95% of the NAAQS for ozone. In counties where ozone levels reach 95% of the NAAQS, NMED is required by New Mexico state statute to take action to reduce ozone pollution.
Apache Corporation is a wholly owned subsidiary of APA Corporation, which is engaged in the exploration and development of oil and natural gas resources in the United States. Apache Corporation is a large producer in the Permian Basin, which is a shale oil and gas producing area located in southeast New Mexico and West Texas.
This settlement is part of EPA’s National Enforcement and Compliance Initiative, Mitigating Climate Change. EPA also has a webpage on today’s settlement.
The Justice Department’s Environmental Enforcement Section lodged today’s proposed consent decree in the U.S. District Court for the District of New Mexico. The settlement is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing on the Justice Department’s website at www.justice.gov/enrd/consent-decrees. The Federal Register notice will also include instructions for submitting public comment.
Alexandria Fentanyl and Gun Trafficker Sentenced to 15 YearsRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 15 years in prison for conspiring to distribute fentanyl and possessing a firearm in furtherance of drug trafficking.
According to court documents, Carrington Hammond, 29, worked with Arizona-based suppliers and local redistributors to sell kilogram-level quantities of fentanyl in the Eastern District of Virginia. Hammond’s co-conspirators mailed packages across the country to Hammond containing tens of thousands of counterfeit pills. The pills had the appearance of pharmaceutical oxycodone but instead were laced with fentanyl. Law enforcement identified one such package containing 50,000 fentanyl-laced pills. Hammond also trafficked fentanyl in powder form, as well as cocaine.
In addition to drug trafficking, Hammond sold multiple firearms during the conspiracy. Law enforcement recovered three firearms that Hammond sold to a local drug redistributor, including a “ghost” gun. A ghost gun is a firearm that is not marked with a serial number and is often made using a 3-D printer, so there is no way to track its origins or owners.
On August 10, 2023, law enforcement searched an Alexandria apartment unit of Hammond and several of his co-conspirators, from which they sold their drugs and firearms. During the search of the two-bedroom apartment, law enforcement seized over five kilograms of counterfeit pills laced with fentanyl, over two kilograms of fentanyl powder, over one kilogram of cocaine, 2.5 kilograms of marijuana, and two firearms. One firearm was hidden under a couch cushion, and the other was a semi-automatic weapon kept loaded next to a safe containing a kilogram of fentanyl.
Hammond had been prosecuted multiple times at the state level for drug and firearm-related offenses, as well as violent crimes. Three of his charged co-conspirators are scheduled to be sentenced on February 20.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod A. Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Ajay D. Lall, Acting Inspector in Charge for the U.S. Postal Inspection Service – Washington Division; Don Hayes, Alexandria Chief of Police; and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorneys Heather D. Call and Kristin S. Starr prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistance was provided by the Washington/Baltimore High Intensity Drug Trafficking Area (HIDTA) task force.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-166.
Albuquerque Man Sentenced to 15 Years in Prison for Voluntary ManslaughterRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI’s Albuquerque Field Office, announced that Silvester Castillo was sentenced to 15 years in prison. Castillo, 38, of Albuquerque, and an enrolled member of the Navajo Nation, pleaded guilty to voluntary manslaughter on July 6, 2023.
According to publicly available court records, on May 31, 2021, officers from the Navajo Nation Police Department responded to a residence in Torreon, New Mexico in reference to a homicide. Officers found Jane Doe in the front yard lying face up with her sweatpants around her ankles and obvious blunt force trauma to her head, face, and body. She was located near a Buick sedan that was still running and had sustained heavy damage to the rear bumper. Castillo was located inside of the residence with blood on his hands, pants, and shoes. Jane Doe’s 4-year-old daughter told law enforcement that her mommy was dead, and that Castillo told her to hide the shovel. During a forensic interview, Jane Doe’s daughter disclosed that she saw Castillo hit Jane Doe with a shovel, remove her clothes, and then run over her face with a car. Castillo then told her not to tell. Castillo’s grandmother also witnessed the incident but waited until daylight to walk to the neighbor’s house for help.
Castillo denied any involvement in Jane Doe’s death. He claimed that she brought him alcohol against his wishes and told him she was a “Skinwalker.” He also claimed that she poisoned him, causing him to lose consciousness. Lastly, Castillo claimed self-defense, stating that Jane Doe had bit his shoulder, cut his hand, and burned his arm. Agents were unable to locate any injuries on Castillo other than an older burn scar.
According to OMI, Jane Doe’s cause of death was blunt force trauma, the manner of death was homicide. Jane Doe suffered significant scalp wounds, including tears and a subarachnoid hemorrhage, with head and facial injuries consistent with a car wheel driving over it. She also had several broken ribs and a lung injury.
Upon his release from prison, Castillo will be subject to three years of supervised release.
The FBI Albuquerque Field Office investigated this case with the assistance of the Navajo Police Department and Department of Criminal Investigations. Assistant United States Attorneys Timothy Trembly and Caitlin Dillon are prosecuting the case.
# # #
24-69
Ada Resident Pleads Guilty to Obstruction of JusticeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that David Henry Vick, Jr., age 38, of Ada, Oklahoma, entered a guilty plea to an Information charging him with Obstruction of the Due Administration of Justice.
The Information alleged that in June and July of 2023, Vick twice corruptly influenced, obstructed, and impeded the due administration of justice by causing and inducing an individual from appearing before two empaneled federal grand juries in the Eastern District of Oklahoma. At the plea hearing, Vick admitted that when he learned that the potential witness had been subpoenaed to testify before empaneled grand juries in June and July of 2023, he directed the individual to not appear or testify. Due to Vick’s inducements, the witness failed to appear to testify.
The charge arose from an investigation by the Bureau of Indian Affairs and the Ada Police Department.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Vick will remain in the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney T. Cameron McEwen represented the United States.
12 February 2024
Wheeling Developer Admits to Wire and Tax FraudRead the Press Release
WHEELING, WEST VIRGINIA – A Wheeling real estate developer pleaded guilty today to wire fraud and tax fraud in connection with a scheme to bilk investors out of millions of dollars.
United States Attorney William Ihlenfeld announced that Jeffrey James Morris, managing member of Roxby Development, LLC, admitted to one count of wire fraud and one count of willful failure to pay over tax. According to court documents, Morris, age 37, agreed that he used false and misleading information to induce investments in the Scottish Rite Cathedral. Morris also admitted that he caused Roxby Development to collect payroll taxes on behalf of its employees but willfully failed to pay over those funds to the Internal Revenue Service.
Pursuant to the plea agreement, Morris must pay $5,129,113.32 in restitution to investors and an additional $526,476.58 in taxes, penalties, and interest to the Internal Revenue Service.
Morris secured funding both locally and nationally to develop real estate in Wheeling. In addition to his acquisition of the Scottish Rite Cathedral, he acquired the McClure House Hotel and the Mount Carmel Monastery and solicited investments for other properties in the area. The Cathedral and McClure House were foreclosed upon in 2023, and the Monastery will be conveyed by Morris to its primary lienholder pursuant to the plea agreement.
Morris faces up to six and a half years in prison when he is sentenced.
United States Attorney Ihlenfeld and Assistant U.S. Attorney Jarod Douglas are prosecuting the case on behalf of the government.
The matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-CI.
U.S. Magistrate Judge James P. Mazzone presided.
Read the plea agreement here:
Jeffrey Morris Plea AgreementSuburban Chicago Accountant Guilty of Evading $3.4 Million in Federal and State Income TaxesRead the Press Release
CHICAGO — A suburban Chicago accountant has pleaded guilty to a federal tax offense for willfully evading more than $3.4 million in federal and state income taxes.
IMRAN MAHMOOD, 56, of South Barrington, Ill., pleaded guilty Thursday to a tax evasion charge before U.S. District Judge Sara L. Ellis. The conviction is punishable by a maximum sentence of five years in federal prison. Judge Ellis set sentencing for June 11, 2024, at 10:30 a.m.
The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. Valuable assistance was provided by the FBI Chicago Field Office. The government is represented by Assistant U.S. Attorney Patrick J. King, Jr.
Mahmood was a certified public accountant who provided accounting services for an Illinois not-for-profit organization and a related company. From 2011 to 2014, Mahmood obtained from the two entities approximately $9,084,984 – the majority of which came from the not-for-profit organization’s payroll accounts – and directed that the money be deposited with an entity Mahmood controlled. Mahmood then used the deposited funds to make personal expenditures.
Mahmood attempted to conceal the scheme by mischaracterizing payments in the books and records of the entities from which he obtained the money. Although Mahmood hired a tax professional to assist in filing Mahmood’s income tax returns, he failed to disclose to the professional all of the funds that he received and his ownership of the entity into which he deposited those funds. This conduct caused the filing of false tax returns for the years 2011 to 2014.
Mahmood admitted in a plea agreement that his conduct resulted in a total federal and state tax loss of approximately $3,468,523.
Mahmood plea agreementSix sentenced for roles in $20M COVID-19 relief fraud ringRead the Press Release
HOUSTON - Six Houston-area men have been sentenced for their roles in a conspiracy to fraudulently obtain more than $20 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Hamza Abbas, 31, Ammas Uddin, 31, and Arham Uddin, 27, all of Richmond, were sentenced to 44, 18 and 18 months in prison, respectively, while Syed Ali, 55, Sugar Land, received a 24-month-term. Two others - Muhammad Anis, 55, and Jesus Acosta Perez, 33, both of Houston, were sentenced to respective terms of 21 months and 12 months and a day. All six had previously pleaded guilty and must also pay varying amounts in restitution.
According to court documents, the men conspired together and with others to fraudulently obtain PPP loans by, among other means, supplying information about their businesses to be used to submit false and fraudulent PPP loan applications. Specifically, the PPP loan applications falsified the numbers of employees and the average monthly payroll expenses of the applicant businesses. The loan applications included fraudulent bank records and fake federal tax forms in support of the PPP loan applications.
Abbas also recruited others into the conspiracy and created fraudulent bank records that were used in support of the loan applications in exchange for kickbacks.
They laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. These fake paychecks were cashed at certain cash checking businesses, including one another co-conspirator owned.
In January, three other individuals who also previously pleaded guilty were sentenced for their roles in the loan fraud scheme. Raheel Malik, 43, Sugar Land, and Nishant Patel, 41, Houston, received respective sentences of 18 and 24 months, while Harjeet Sing, 50, Katy, must serve five years of probation.
In October 2023, seven others were sentenced for their roles in the loan fraud conspiracy, including the ringleader, Amir Aqeel, 55, Houston, who was sentenced to 15 years in prison.
SBA - Office of Inspector General (OIG), Federal Housing Finance Agency – OIG (Central Region), Homeland Security Investigations, Federal Deposit Insurance Corporation – OIG (Dallas Region) and Treasury Inspector General for Tax Administration (Gulf States Field Division) conducted the investigation.
Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson are prosecuting the case along with Trial Attorneys Kate McCarthy, Louis Manzo, Spencer Ryan, Della Sentilles and Randall Warden of the Criminal Division’s Fraud Section.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds.
Six Men Sentenced for Roles in $20M COVID-19 Relief Fraud RingRead the Press Release
Six Texas men were sentenced today for their roles in a conspiracy to fraudulently obtain more than $20 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Hamza Abbas, 31, Ammas Uddin, 31, and Arham Uddin, 27, all of Richmond, were sentenced to three years and eight months, one year and six months, and one year and six months in prison, respectively; Syed Ali, 55, of Sugar Land, was sentenced to two years in prison; and Muhammad Anis, 55, and Jesus Acosta Perez, 33, both of Houston, were sentenced to one year and nine months and one year and one day in prison, respectively. All six defendants previously pleaded guilty.
According to court documents, the defendants conspired together and with others to fraudulently obtain PPP loans by, among other means, supplying information about their businesses to be used to submit false and fraudulent PPP loan applications. Specifically, the PPP loan applications falsified the numbers of employees and the average monthly payroll expenses of the applicant businesses. The loan applications also included fraudulent bank records and fake federal tax forms in support of the PPP loan applications. Abbas also recruited others into the conspiracy and created fraudulent bank records that were used in support of the loan applications in exchange for kickbacks.
The defendants also laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. These fake paychecks were cashed at certain cash checking businesses, including one owned by another co-conspirator.
In January, three other individuals who previously pleaded guilty were sentenced for their roles in the loan fraud scheme. Raheel Malik, 43, of Sugar Land, was sentenced to one year and six months in prison; Nishant Patel, 41, of Houston, was sentenced to two years in prison; and Harjeet Sing, 50, of Katy, was sentenced to five years of probation.
In October 2023, seven other individuals were sentenced for their roles in the loan fraud conspiracy, including the ringleader, Amir Aqeel, 55, of Houston, who was sentenced to 15 years in prison.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas, Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA-OIG) Central Region, Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General’s (FHFA-OIG) Central Region, Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) Houston, Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Dallas Region, and Special Agent in Charge Gary Smith of the Treasury Inspector General for Tax Administration (TIGTA) Gulf States Field Division made the announcement.
The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG, and TIGTA are investigating the cases.
Trial Attorneys Kate McCarthy, Louis Manzo, Spencer Ryan, Della Sentilles, and Randall Warden of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson for the Southern District of Texas are prosecuting the cases.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.
Sacramento Man Pleads Guilty to Sexual Exploitation of ChildrenRead the Press Release
SACRAMENTO, Calif. — Jayson Fernandez Butay, 29, of Sacramento, pleaded guilty today to one count of producing child sexual abuse material and one count of possessing child sexual abuse material, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in April 2019, Butay used Snapchat to correspond with a 15-year-old girl living in Finland. Butay convinced her to send him naked images of herself. Once he received these images, Butay threatened to disclose them to his victim’s family and friends unless she sent him sexually explicit videos. In this way, Butay obtained at least one additional sexually explicit video.
Law enforcement agents subsequently executed federal search warrants at Butay’s residence in Sacramento and seized hundreds of images and videos from Butay’s digital devices that depicted the sexual exploitation of children.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Sam Stefanki is prosecuting the case.
Butay is scheduled to be sentenced by U.S. District Judge William B. Shubb on April 29, 2024. Butay faces a maximum statutory penalty of 30 years in prison and a $250,000 fine with a mandatory minimum sentence of 15 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Russian-Canadian National Pleads Guilty to Conspiracy to Launder Money from Scheme to Send UAV and Missile Components to Russia in Violation of U.S. SanctionsRead the Press Release
Earlier today in federal court in Brooklyn, Kristina Puzyreva pleaded guilty to money laundering conspiracy for her role in a multimillion-dollar scheme to send components used in unnamed aerial vehicles (UAVs) and guided missile systems and other weapons to sanctioned entities in Russia. The components shipped in violation of export control and sanctions laws were later found in Russian weapons platforms and signals intelligence equipment in Ukraine. At sentencing, Puzyreva faces up to twenty years in prison. Prosecution against the other defendants remains pending.
Breon Peace, United States Attorney for the Eastern District of New York, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Erin Keegan, Acting Special Agent-in-Charge, Homeland Security Investigations New York (HSI), James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement (BIS), announced the plea.
“As she admitted today, the defendant was a key part of the plan, laundering proceeds from the scheme to evade sanctions and ship UAV and missile components to Russia that were later found on the battlefield in Ukraine,” stated United States Attorney Peace. “Today’s plea demonstrates that the Eastern District of New York will not allow criminals to endanger national security by supplying Russia with U.S.-sourced military technology.”
“Kristina Puzyreva and her co-defendants allegedly purchased and dispatched millions of dollars in U.S.-sourced electronics to support the Kremlin in its ongoing attacks of Ukraine. Her money laundering conspiracy was directly linked to 298 shipments of restricted technology, valued at $7 million, to the Russian battlefield,” said HSI New York Acting Special Agent in Charge Erin Keegan. “While today’s guilty plea remains a positive step toward justice, HSI New York will continue to relentlessly pursue those who seek to exploit U.S. export control laws for financial gain.”
“Following the money is a law enforcement imperative. This defendant laundered money on behalf of several Brooklyn front companies to ship U.S.-origin electronics to sanctioned entities in Russia,” said Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement. “As today’s guilty plea makes clear, we are unyielding in our efforts to help prevent American electronics from being used in Russian missiles and drones that kill innocent civilians in Ukraine.”
"Kristina Puzyreva admitted today she willingly played a key role in a global procurement scheme, which ultimately helped the government of Russia obtain sanctioned equipment for its war efforts. Puzyreva chose to turn a blind eye to the law to enrich herself, compromising the national security of the United States. This plea reminds anyone willing to help the Russian government evade sanctions that the FBI will pursue swift punishment in the criminal justice system," stated FBI Assistant Director-in-Charge Smith.
As alleged in the indictment and other court filings, the defendant laundered money as part of a sophisticated export control and sanctions evasion scheme involving SH Brothers Inc. (SH Brothers) and SN Electronics, Inc. (SN Electronics), two companies registered in Brooklyn, New York. Using the SH Brothers and SN Electronics corporate entities, the defendant’s co-conspirators unlawfully sourced, purchased and shipped millions of dollars in dual-use electronics from U.S. manufacturers to end users, including sanctioned entities, in Russia. The electronic components and integrated circuits shipped were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine, including in UAVs and guided missiles. During the period charged in the indictment, SH Brothers made hundreds of shipments valued at over $7 million to Russia.
Puzyreva and her husband, co-defendant Nikolay Goltsev, traveled on multiple occasions from Canada to meet with their co-defendant Salimdzhon Nasriddinov in Brooklyn. During such trips, Puzyreva utilized numerous bank accounts to make financial transactions in furtherance of the scheme. For example, Puzyreva is the signatory on two New York accounts, including one that lists Nasriddinov’s home address in Brooklyn (also the registered address of SH Brothers) as the address of record. Records for these accounts reflect large, structured cash deposits in Brooklyn and Manhattan that correspond with trips that Puzyreva and Goltsev made to New York. These deposits were then transferred to accounts held and used by Puzyreva and Goltsev in Canada.
The scheme involved millions of dollars in transactions and was lucrative for the defendants. For example, in a text message exchange on or about January 13, 2023, Goltsev complained to Puzyreva that a co-conspirator “asked me to make 80 accounts . . . I am making accounts for 3 mln [i.e., million]. Fingers hurting already from the laptop.” Puzyreva responded, “Lot of money? We will get rich.” Later, on or about January 20, 2023, Goltsev messaged Puzyreva, “Dasha (a co-conspirator) paid. 700k.” Notably, financial records revealed wire transfers totaling approximately $700,000 into an SH Brothers account in or around January 2023 from a Hong Kong-based entity as part of an order for a sanctioned Russian entity.
The government seized $20,000 in cash from the New York hotel room in which the defendant was arrested. In total, the government has seized approximately $1.68 million dollars in connection with this export scheme.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell and Ellen H. Sise are in charge of the prosecution, along with Trial Attorney Christopher M. Cook of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analysts Mary Clare McMahon and Joseph Levin. Assistant United States Attorney Laura Mantell of the Office’s Asset Recovery Section is handling forfeiture matters.
The FBI, Department of Commerce’s Office of Export Enforcement’s New York Field Office, and Department of Homeland Security Homeland Security Investigations are investigating the case.
Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
The Defendant:
KRISTINA PUZYREVA
AGE: 32
Montreal, CanadaE.D.N.Y. Docket No. 23-CR-452
Rockford Man Sentenced to 48 Months in Prison for Possessing a Firearm as a Felon in SpringfieldRead the Press Release
SPRINGFIELD, Ill. – A Rockford, Ill., man, Joshua Mathies, 28, of the 800 block of North Court Street, was sentenced on February 8, 2024, by Senior U.S. District Judge Sue Myerscough to 48 months’ imprisonment to be followed by a 3-year term of supervised release, for possessing a firearm as a felon.
At the sentencing hearing, the government presented evidence that Mathies had taken a semi-automatic weapon into a Springfield bar on the night of his arrest and then attempted to flee when approached by police, who had been notified by a fellow bar patron about Mathies’ possessing the gun. As he was trying to flee, Mathies was tasered. At the time of his arrest, Mathies was on parole from the Illinois Department of Corrections for a previous gun offense.
Mathies has been in the custody of the U.S. Marshal Service since his arrest on May 14, 2023.
The statutory penalties for possession of a firearm by a felon are up to 15 years’ imprisonment, up to a $250,000.00 fine, and up to a three-year term of supervised release.
This case was investigated by the Springfield Police Department with assistance from the Sangamon County Sheriff, the Illinois State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sierra Senor-Moore represented the government in the prosecution.
The case against Mathies 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.
Repeat Offender Sentenced to Prison for Possession of Child Sexual Abuse MaterialRead the Press Release
LAS VEGAS – A Tonopah, Nev., man was sentenced today by United States District Judge Richard F. Boulware III to 10 years in prison to be followed by 15 years of supervised release for unlawful possession of child sexual abuse material while on federal supervision for a prior crime.
According to court documents, in January 2023, a United States probation officer conducted a visit at the residence of Jeff Richard Stewart (66) who was on federal supervised release for a 2012 conviction of receipt of child sexual abuse material. During the visit, the probation officer discovered several unauthorized electronic devices in Stewart’s possession and seized the devices. Stewart admitted that he possessed about 4,535 images and three videos of child sexual abuse material depicting children as young as infants on these devices.
In November 2023, Stewart pleaded guilty to one count of possession of child pornography. In addition to imprisonment, he is required under the Sex Offender Registration and Notification Act to register as a sex offender and keep the registration current.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The case was investigated by the FBI and the Nye County Sheriff’s Office. Assistant United States Attorney Supriya Prasad prosecuted the case.
The 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or https://report.cybertip.org.
###
Queens Men Sentenced to Prison for Conspiring to Hack the Taxi Dispatch System at JFK AirportRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DANIEL ABAYEV was sentenced to four years in prison and PETER LEYMAN was sentenced to two years in prison for their roles in a scheme to hack the electronic taxi dispatch system (the “Dispatch System”) at John F. Kennedy International Airport (“JFK”). ABAYEV and LEYMAN were both sentenced today before U.S. District Judge Paul A. Crotty. On October 4 and October 30, 2023, respectively, LEYMAN and ABAYEV each pled guilty to one count of conspiring to commit computer intrusion.
U.S. Attorney Damian Williams said: “Daniel Abayev and Peter Leyman, allegedly assisted by Russian hackers, wrought havoc on JFK's electronic taxi dispatch system, impacting fair order and creating chaos for honest taxi professionals. Their actions enabled up to 1,000 fraudulent taxi trips daily, underscoring the serious threat cyber hacking poses to critical infrastructure. Through our collaborative efforts with law enforcement partners, their scheme was dismantled, and the defendants have been rightfully sentenced.”
According to the charging documents and other filings and statements made in court:[1]
From at least September 2019 through September 2021, ABAYEV and LEYMAN, who are U.S. citizens residing in Queens, New York, and ALEKSANDR DEREBENETC, a/k/a “Sasha Novgorod,” and KIRILL SHIPULIN, a/k/a “Kirill Russia,” who are Russian nationals residing in Russia, engaged in a scheme (the “Hacking Scheme”) to hack the Dispatch System at JFK.
At all relevant times, taxi drivers who sought to pick up a fare at JFK were required to wait in a holding lot at JFK before being dispatched to a specific terminal by the Dispatch System. Taxi drivers were frequently required to wait several hours in the lot before being dispatched to a terminal and were dispatched in approximately the order in which they arrived at the holding lot.
Beginning in 2019, ABAYEV, LEYMAN, DEREBENETC, and SHIPULIN attempted various mechanisms to access the Dispatch System without authorization, including bribing someone to insert a flash drive containing malware into computers connected to the Dispatch System, obtaining unauthorized access to the Dispatch System via a Wi-Fi connection, and stealing computer tablets connected to the Dispatch System. The members of the Hacking Scheme also sent messages to each other in which they explicitly discussed their intention to hack the Dispatch System. For example, on or about November 10, 2019, ABAYEV messaged DEREBENETC in Russian: “I know that the Pentagon is being hacked[.]. So, can’t we hack the taxi industry[?]”
At various times between November 2019 and November 2020, the members of the Hacking Scheme successfully hacked the Dispatch System. They used their unauthorized access to alter the Dispatch System and move specific taxis to the front of the line, thereby allowing drivers of those taxis to skip other taxi drivers waiting in the line. ABAYEV and LEYMAN charged taxi drivers $10 each time they were advanced to the front of the line and transferred part of their profits to SHIPULIN and DEREBENETC.
ABAYEV was the leader of the Hacking Scheme and recruited the other participants. ABAYEV and LEYMAN’s scheme resulted in large numbers of taxi drivers skipping the taxi line. Over the course of the scheme, they enabled as many as 1,000 fraudulently expedited taxi trips a day.
DEREBENETC and SHIPULIN remain at large.
* * *
In addition to the prison term, ABAYEV, 47, and LEYMAN, 49, both of Queens, New York, were sentenced to three years of supervised release and each ordered to pay $161,858.26 in forfeiture and $3,456,169.50 in restitution.
Mr. Williams praised the outstanding work of the Port Authority Office of the Inspector General. Mr. Williams also thanked Homeland Security Investigations for their assistance in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kevin Mead and Steven J. Kochevar are in charge of the prosecution.
[1] The entirety of text of the Indictment charging DEREBENETC and SHIPULIN and the description of the Indictment set forth herein constitute only allegations, and every fact described regarding DEREBENETC and SHIPULIN should be treated as an allegation.”
Pike County Physician Sentenced to 22 Years' Imprisonment for Drug Distributions - One Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Martin Evers, age 66, of Pike County, Pennsylvania, was sentenced to 264 months’ imprisonment by United States District Court Judge Robert D. Mariani for unlawfully prescribing oxycodone, fentanyl, and methadone to three patients, including a Monroe County woman who died as a result of using the drugs. In addition to the prison term, Judge Mariani ordered that Evers pay a fine in the amount of $50,000 and be supervised by a probation officer for three years following his release from prison.
According to United States Attorney Gerard M. Karam, Evers was convicted by a jury on December 5, 2022. Jurors deliberated for just two hours before finding Evers guilty on all 71 counts of unlawful distribution of controlled substances, as charged in the superseding indictment. The counts involved the unlawful distribution of oxycodone, fentanyl and methadone, all Schedule II controlled substances, and diazepam, a Schedule IV controlled substance. One of the counts for which Evers was convicted involved the unlawful distribution of oxycodone and fentanyl that resulted in the death of a 48-year old Monroe County woman on February 11, 2019.
During the three-week trial, prosecutors from the U.S. Attorney’s Office presented the testimony from the Drug Enforcement Administration (DEA) - Diversion Division, six pharmacists who refused to fill prescriptions issued by Evers, a Walmart Global Investigations witness who offered testimony related to Walmart’s issuance of a nationwide ban for filling all narcotic prescriptions issued by Evers, an expert on pain medicine, an expert toxicologist, an expert pathologist, a Pennsylvania State Police Officer, and a witness from the Monroe County Coroner’s Office.
During the time charged in the superseding indictment, Evers was an employee of the Bon Secours Charity Health System and practiced as a primary care physician in Milford, Pennsylvania. He was licensed in the Commonwealth of Pennsylvania and authorized to prescribe controlled substances for legitimate medical purposes and in the usual course of professional practice. Evers is no longer licensed to practice medicine.
The jury found that Evers repeatedly prescribed oxycodone, fentanyl, and methadone outside the usual course of professional practice and not for legitimate medical purposes and as a result, addiction and death occurred.
After the jury’s verdict on December 5, 2022, Judge Mariani ordered Evers detained.
The two-year long investigation in this case was conducted by the Drug Enforcement Administration (DEA) and its Diversion Division, the Pennsylvania State Police, and the Pennsylvania Office of Attorney General. Assistant U.S. Attorneys Michelle Olshefski and Jenny Roberts prosecuted the case.
This case was prosecuted as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit opioid trafficking offenses.
This case is also 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 maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Orlando Man Who Committed Five Armed Robberies Sentenced to Seven Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Geoffrey Gaston (29, Orlando) to seven years in federal prison for committing five armed robberies between September 12 and October 12, 2022. The court also ordered Gaston to forfeit the $1,323 stolen as well as the $517 found in his vehicle upon his arrest that were proceeds of the offenses. Gaston entered a guilty plea on November 16, 2023.
According to court documents, at 4:30 a.m. on September 12, 2022, Gaston, dressed in all-black and wearing gloves, entered a 7-Eleven store in Orlando and displayed what appeared to be a handgun. He demanded all the money in the cash drawer. Law enforcement later obtained evidence that Gaston had been searching the internet for “realistic toy gun” in the weeks leading up to this robbery and “.380,” “.22 pistol,” and “Saturday night special gun,” after this robbery.
On September 26, 2022, at approximately 4:20 a.m., Gaston conducted another robbery at a 7-Eleven store in Altamonte Springs wearing the same outfit and again displaying what appeared to be a firearm and robbing the store of $73 (pictured below)
Gaston went on to perpetrate the same armed robbery at another 7-Eleven store that same morning at 4:50 a.m. in Oviedo, obtaining $300 (pictured below).
On October 5, 2022, at approximately 3:50 a.m., Gaston robbed another 7-Eleven in Orlando, obtaining $100 after showing the cashier an apparent firearm (pictured below).
On October 12, 2022, at approximately 4:45 a.m., Gaston returned to the first 7-Eleven he had robbed a month earlier, obtaining $350 by showing the cashier his weapon and demanding that he empty the drawer.
Gaston was arrested later that week at the 7-Eleven where he worked.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Orlando Police Department, the Orange County Sheriff’s Office, the Seminole County Sheriff’s Office, and the Altamonte Springs Police Department. It was prosecuted by Assistant United States Attorneys Dana E. Hill and Noah Dorman.
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.
One Sentenced, One Pleads Guilty in 2 Separate Cases Involving Debit and Credit Card Skimming SchemesRead the Press Release
FRESNO, Calif. — Artak Vardanyan, 40, of Burbank, was sentenced today to 11 months in prison for conspiring to commit credit and debit card fraud, and Christos Mavrokelos, 37, a Romanian national operating in Fresno and elsewhere, pleaded guilty today to using counterfeit debit cards and skimming devices, U.S. Attorney Phillip A. Talbert announced.
Vardanyan Used Credit and Debit Card Skimmers at Gas Stations to Steal Nearly $200,000 in Fresno and Southern California
According to court records, in November 2015, Vardanyan and his co-defendant, Akop Dongelyan, went on a crime spree in Fresno and Southern California where they stole multiple victims’ credit and debit card information through skimmers placed at gas stations. They then used that information to make counterfeit credit and debit cards and stole over $195,000 from the victims’ accounts. This case is the product of an investigation by the FBI. Assistant U.S. Attorneys Joseph Barton and Arelis Clemente are prosecuting the case.
Mavrokelos Used Debit Card Skimming Devices on Bank ATMs to steal Victims’ Debit Card Information and Made Unauthorized Cash Withdrawals
According to court records, from July 2021 through November 2023, in Fresno and Madera Counties and elsewhere, Mavrokelos knowingly and with intent to defraud, used counterfeit debit cards that contained victims’ stolen account information to make unauthorized cash withdrawals on the victims’ accounts. The victims’ account information was stolen through the use of skimming devices, which are devices that can be surreptitiously installed on bank ATMs and card readers that are used to record victims’ information.
In total, Mavrokelos made unauthorized cash withdrawals on more than 10 victims’ accounts. The withdrawals were made from banks whose deposits were insured by the Federal Deposit Insurance Corporation. Mavrokelos’s misconduct caused an actual loss of $75,000, and the reasonably foreseeable intended loss was over $95,000. This case is the product of an investigation by the FBI and the Clovis Police Department. Assistant U.S. Attorneys Joseph Barton and Cody Chapple are prosecuting the case.
Mavrokelos is scheduled to be sentenced on May 13, 2024. He faces a maximum penalty of 10 years in prison and a fine of $250,000. Vardanyan’s co-defendant, Dongelyan, previously pleaded guilty and is scheduled to be sentenced on Feb. 20, 2024. He faces a maximum penalty of five years in prison and a fine of $250,000. The actual sentences, 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.
Nigerian Man Extradited from the United Kingdom to Bismarck, North Dakota on Wire Fraud, Mail Fraud, and Money Laundering ChargesRead the Press Release
BISMARCK – United States Attorney Mac Schneider announced that on February 12, 2024, Nigerian citizen Christopher Agbaje made an initial appearance in the United States District Court for the District of North Dakota, on charges of 1) Wire Fraud; 2) Mail Fraud; and 3) Money Laundering.
Agbaje appeared at this hearing in Bismarck, North Dakota, after being extradited from the United Kingdom.
At Agbaje’s initial appearance, United States Magistrate Judge Clare R. Hochhalter, ordered that the defendant be detained pending trial, scheduled for April 9, 2024, at 9:00 a.m.
As alleged in the Indictment, between November and December 2020, the defendant participated with others in a sophisticated scheme to defraud a North Dakota law firm out of $198,336.68. As part of this scheme, individuals falsely purported to be a business owner in a legal dispute with a Bismarck, North Dakota company and entered into a fictious attorney-client relationship with this law firm. Through email communications, these individuals made false statements and promises, upon which the law firm relied to their determinant. Thereafter, the law firm received a parcel containing a fraudulent Citibank check payable to the law firm in the amount of $198,850.00 and deposited this check in the law firm’s bank account. Subsequently, at the purported business owner’s request, the law firm sent a $198,336.68 wire transfer to Christopher Agbaje’s business partner. A short time later, Christopher Agbaje directed his business partner to fraudulently initiate a $180,000.00 international wire transfer with the intent to conceal the location, ownership, and control of the law firm’s money.
An Indictment in this case is not evidence of guilt. The defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jonathan J. O’Konek. The Justice Department’s Office of International Affairs provided substantial assistance with securing the arrest and extradition of Agbaje.
######
Michigan Man Sentenced for Armed Drug TraffickingRead the Press Release
ASHLAND, Ky. – A Hamtramck, Mich., man, Corey J. Benton, 34, was sentenced on Monday, by U.S. District Judge David Bunning, to 138 months in prison, for possession with intent to distribute a controlled substance and possession of a firearm in furtherance of drug trafficking.
According to his plea agreement, beginning in October 2022, the Kentucky State Police opened an investigation into the drug trafficking activities of Benton. Their investigation revealed that Benton had sold illicit drugs containing fentanyl and fluorofentanyl, a fentanyl analogue, in Carter County. Ultimately, during the execution of a search warrant at Benton’s residence, law enforcement seized a distribution quantity of fentanyl, as well as a .45 caliber Sig Sauer firearm. Benton admitted that he possessed this firearm in furtherance of his drug trafficking activity.
Under federal law, Benton 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 four years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by ATF and KSP. Assistant U.S. Attorney Cynthia Rieker is prosecuting the case on behalf of the United States.
— END —
Member of transnational organized crime group convicted of money laundering, encouraging aliens to come to the United States, trafficking stolen property, and bribery of public officials sentenced to 95 months in prisonRead the Press Release
MIAMI – On Feb. 9, a Miami Beach man was sentenced to 95 months in federal prison for his role in a violent transnational organized crime group operating in Cuba, Mexico, Spain, and South Florida since as early as 2009.
The sentence comes after a jury convicted Javier Hernandez, 50, of Miami Beach, Florida, of conspiracy to commit encourage and induced aliens to come to or enter the United States without authority, conspiracy to transport stolen vessels, conspiracy to traffic in certain motor vehicles, trafficking in certain motor vehicles, and conspiracy to launder money to promote stolen property trafficking and the bribery of public officials in October 2023.
According to evidence introduced at trial, Hernandez and his codefendant, Ramon Reyes Aranda, 38, of Naples, Florida, stole vessels from the west coast of Florida. Reyes Aranda would identify the vessels, and Hernandez transported them to Mexico, where they would be used to fund and facilitate the enterprise’s illegal activities. Prior to the trial, Reyes Aranda pleaded guilty to participating in a money laundering conspiracy to promote stolen property trafficking and the bribery of public officials.
The stolen property, which included boats and vessels, were transported to a coconspirator in Mexico, who would then use the stolen property to facilitate and promote the organization’s activities. For example, evidence introduced at trial showed that Hernandez transported a vehicle to Mexico for use in bribing a foreign official so that the organization could continue conducting migrant smuggling without interference from law enforcement.
An extensive multi-national operation, led by American and Mexican law enforcement authorities, was formed to combat the activities of a violent transnational organized crime group known collectively in Mexico as La Mafia Cubana en Quintana Roo, or the Cuban Mafia in Quintana Roo. Through this operation, law enforcement officials learned that Jose Miguel Gonzalez Vidal, 36; Reynaldo Abreu Garcia, 56; Yohismy Perez Gonzalez, 40; Yosvani Carbonel Lemus, 43; Reynaldo Crespo Marquez, 44, and Jancer Sergio Ramos Valdes, 37, all Cuban citizens residing in Mexico at the time of the charges, along with Maikel Antonio Hechavarria Reyes and Monica Susana Castillo, both of Mexico, were part of an organized crime group that profited from various schemes, including the smuggling and extortion of Cuban migrants held hostage in Mexico for the payment of smuggling fees (United States v. Vidal, et al., Case No. 21-cr-20050-CMA).
According to evidence contained in the court record, Gonzalez Vidal introduced Hernandez to Reyes Aranda so that they could work together to transport stolen vessels for the organization. Both Hernandez and Reyes Aranda were paid by Gonzalez Vidal and other members of the organization for their transportation of the stolen property.
The members of the migrant extortion racket required the victims to provide contact information of a family member from whom they would later demand a $10,000 USD ransom fee. The men contacted the victims’ relatives, some of whom were in Miami, and threatened to torture, starve, and kill the victims if the relatives refused to pay. If a victim’s relative was able to pay the ransom, the organization released the victim and sent them by bus to the United States-Mexico border with instructions to seek political asylum. The victims whose relatives were unable to pay the fee were beaten, threatened with knives and guns, and shocked with stun guns until they were finally rescued by Mexican authorities. Members of the organization also sought to profit from drug trafficking and fraud schemes.
Further, once the defendants were charged in the United States and detained pending trial, they continued operating the organization by seeking to obstruct justice, violating court orders, and distributing contraband in a federal detention center. As part of their prison racket, the organization paid bribes to a federal employee to introduce contraband and controlled substance for distribution into the Federal Detention Center (FDC), in Miami.
For their participation in the criminal scheme, Gonzalez Vidal, Crespo Marquez, Abreu Garcia, Perez Gonzalez, Carbonel Lemus, and Ramos Valdes previously pleaded guilty to Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and migrant smuggling.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office; Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami; Acting Special Agent in Charge Matthew J. Margelot, U.S. Coast Guard Investigative Service (CGIS), Southeast Region; Warden Gio Ramirez of the Federal Detention Center (FDC), Bureau of Prisons (BOP); Director Stephanie V. Daniels of the Miami-Dade Police Department (MDPD); Chief of Police Tracy Frazzano for the Marco Island Police Department, and Chief of Police Ciro M. Dominguez of the Naples Police Department, made the announcement.
The prosecution of this organization has involved significant support from the Justice Department’s Office of International Affairs, FBI’s International Violent Crimes Unit, and the Justice Department’s Violent Crime and Racketeering Section.
These multinational prosecutions are the result of ongoing efforts of the Operation Sisyphus Task Force, a multi-agency partnership established by the Organized Crime Drug Enforcement Task Forces (OCDETF) Priority Transnational Organized Crime Program. Since 2012, Operation Sisyphus Task Force participants have secured the conviction of over thirty members and associates of the criminal organization.
The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
Assistant U.S. Attorneys Arielle Klepach and Brian Dobbins prosecuted U.S. v. Hernandez, et al., Case No. 22-cr-20557.
Assistant U.S. Attorneys Manolo Reboso, Quinshawna Landon and Ignacio J. Vázquez, Jr. prosecuted U.S. v. Vidal, et al., Case No. 21-cr-20050. First Assistant U.S. Attorney Michael Davis conducted collateral litigation regarding obstruction of justice activities in the Vidal, et al. prosecution.
Assistant U.S. Attorney Annika Miranda handled asset forfeiture.
Anyone with related information or who may have been a victim or witness should contact HSI at 877-4-HSI TIP (877-447-4847).
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under the case numbers referenced above.
###
Member of Violent Gang Pleads Guilty to Racketeering Involving Attempted MurderRead the Press Release
BOSTON – A Boston-area man pleaded guilty today to his role in Cameron Street, a violent Boston gang.
Daronde Bethea, a/k/a “Freeze,” 32, of Boston and Brockton, pleaded guilty today to conspiracy to participate in a racketeering enterprise, more commonly known as RICO conspiracy; conspiracy to interfere with commerce by force or violence; and being a felon in possession of a firearm and ammunition. U.S. Senior District Court Judge William G. Young scheduled sentencing for May 16, 2024. Bethea was indicted by a federal grand jury in December 2022.
Bethea was identified as a member of Cameron Street, a violent gang based largely in the Dorchester section of Boston. According to court documents, Cameron Street members use violence, including murder and attempted murder, to preserve, protect and expand its territory. They allegedly use social media to promote Cameron Street, celebrate murders and other violent crimes, and denigrate rival gangs. They allegedly possess, carry and use firearms; distribute controlled substances; commit armed robberies; and engage in human trafficking in part to generate income.
As part of his role in the Cameron Street enterprise, Bethea committed an attempted murder with a firearm of a rival gang member in Dorchester in June 2018. As the victim got into his car, Bethea shot the victim multiple times causing the victim to have a collapsed lung. In addition, Bethea was involved in two violent home invasion robberies – in November 2017 in Dorchester and July 2018 in Canton. During a chase from the Canton home, Bethea was captured on a police cruiser camera possessing a loaded handgun that was later recovered.
The charge of RICO conspiracy and conspiracy to interfere with commerce by force or violence each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of the Criminal Division are prosecuting the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. 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 details contained in the charging document are allegations. The remaining defendants named in the indictment are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maryland Man Sentenced for Soliciting a Minor Online for Sexual ContactRead the Press Release
MARTINSBURG, WEST VIRGINIA – Holden Borten, age 25, of Gaithersburg, Maryland, was sentenced today to 135 months in federal prison for traveling for sex with a minor.
According to court documents and statements made in court, Borten initiated a sexual conversation through social media with someone he believed was under the age of 12 and then traveled from Maryland to Berkeley County, West Virginia, expecting a sexual encounter with the minor in December 2022. Borten was arrested at the meeting site by law enforcement.
Upon completion of his prison sentence, Borten will be on supervised release for life.
Assistant U.S. Attorney Kimberley Crockett prosecuted the case on behalf of the government.
The investigation was led by the Federal Bureau of Investigation and the West Virginia State Police Internet Crimes Against Children Unit.
U.S. District Judge Gina M. Groh presided.
Man sentenced to three years in prison for destroying property at U.S. courthouse and federal building in Fort LauderdaleRead the Press Release
MIAMI – On Feb. 8, a man was sentenced to three years in prison and ordered to pay restitution in the amount of $71,933.20 for destroying federal property at the U.S. Courthouse and Federal Building in Fort Lauderdale. The sentence follows his guilty plea entered in November 2023 to one count of destruction of federal property in violation of Title 18, United States Code, Section 1361.
According to facts admitted in support of his guilty plea, on Sept. 5, 2022, Matthew Leon Chilcutt, 45, of Fort Lauderdale, Florida, forced his way into the Courthouse when the building was closed to the public in observance of the Labor Day holiday. While on the federal premises, Chilcutt smashed glass and other objects, destroyed interior and exterior doors, and caused significant water damage, among other acts of destruction. Surveillance video at the Courthouse recorded Chilcutt throughout the offense.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and the Federal Protective Service (FPS), Miami Region, announced the sentence imposed by U.S. District Judge K. Michael Moore.
FPS investigated this case with assistance from the Fort Lauderdale Police Department. Assistant U.S. Attorney David A. Snider prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20449.
###
Man Sentenced to 12 Years for Sex Trafficking a 15-Year-Old GirlRead the Press Release
NEWS RELEASE SUMMARY – February 12, 2024
SAN DIEGO – Gabriel Joseph Gonzalez of Pomona, California was sentenced in federal court today to 12 years in prison for sex trafficking a 15-year-old girl in early 2023.
Gonzalez pleaded guilty in July 2023 to one count of sex trafficking of a minor. The victim was a runaway living at a group home in Los Angeles County when Gonzalez began trafficking her. Gonzalez had known the victim since she was 13. He enticed her to leave the group home to engage in commercial sex work for Gonzalez’s financial benefit. He then transported the victim to San Diego and forced her to walk areas known for prostitution on Dalbergia Street in San Diego and Roosevelt Avenue in National City.
During January 2023, Gonzalez forced the victim to engage in commercial sex work every day for seven straight days– except for the victim’s 16th birthday. He allowed her to take that day “off.”
The victim escaped by calling 911. She was rescued by the San Diego Police Department on January 26, 2023, and the case was turned over to the San Diego Human Trafficking Task Force.
Even after entering a guilty plea in July 2023, Gonzalez attempted to continue to traffic the victim while in custody through jail calls. U.S. District Judge Larry Alan Burns pronounced the 12-year sentence, noting Gonzalez’s “absolute lack of remorse” in his conduct while in custody and his continued victimization of the minor.
“The victim’s courage to call 911 in this case was extraordinary,” said U.S. Attorney Tara McGrath. “Her trust in law enforcement demonstrated that when someone reports abuse, the public servants in this community are all hands on deck to bring abusers to justice.”
“Human trafficking and sexual exploitation of a minor is inexcusable,” said Attorney General Rob Bonta. “At the California Department of Justice, we are fighting to hold perpetrators accountable and help survivors get a fresh start. I’m thankful to all our partners for their collaboration in the California DOJ-led San Diego Human Trafficking Task Force. I’m proud of our office’s work to help uplift vulnerable Californians. When we work together, we get results.”
“The vital work being done by local and federal partners on the Human Trafficking Task Force to combat sex trafficking cannot be quantified,” said FBI San Diego Special Agent in Charge Stacey Moy. “The violence or coercion that is committed against sex trafficking victims can have a lasting negative impact on the victim, their families, and the community for years to come.”
If you are living or working under threat of violence or extortion, or you suspect someone else may be, call the National Human Trafficking Resource Center toll free, 24/7 Hotline: CALL: (888) 373-7888 or TEXT BeFree or 233733.
This case was prosecuted by Assistant U.S. Attorney Derek Ko and Lyndzie M. Carter.
DEFENDANTS Case Number 23-cr-0513-LAB
Gabriel Joseph Gonzalez Age: 20 Pomona, CA
SUMMARY OF CHARGES
Sex Trafficking of a Minor – Title 18, U.S.C., Section 1591(a) and (b)(1)
Maximum penalty: Up to life in prison and $250,000 fine; Ten-year mandatory minimum sentence
AGENCY
San Diego Police Department
National City Police Department
Federal Bureau of Investigation, San Diego
San Diego Human Trafficking Task Force
Man Indicted on Federal Charges for Aiming a Laser Pointer at Spokane County Sheriff’s Helicopter and Life Flight HelicopterRead the Press Release
Spokane, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a federal grand jury has indicted Johnny R. Blackstock on 2 federal felonies in connection to Aiming a Laser Pointer at an Aircraft.
On October 13, 2023, Blackstock shined a laser at a Life Flight helicopter that was transporting a patient in the Spokane area. A short time later, Blackstock shined a laser at the Spokane County Sheriff’s Office Air One helicopter that was on routine patrol in the area.
“Pointing a laser at an aircraft can have life-threatening consequences. Spokane County Sheriff’s Deputies protecting the community and first responders life-flighting a patient for medical help face extreme danger from actions like this,” stated U.S. Attorney Waldref. “I am grateful for our law enforcement partners and first responders who put themselves at risk to protect and serve our community.”
This case is being investigated by the United States Department of Transportation Office of Inspector General. This case is being prosecuted by Assistant United States Attorney Patrick Cashman.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Leader of Baltimore Drug Trafficking Organization Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Ernest Lee Bailey, age 51, of Owings Mills, Maryland, to 10 years in federal prison, followed by four years of supervised release, for possession with intent to distribute controlled substances, including heroin, fentanyl, cocaine and MDMA.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation (“FBI”), Baltimore Field Office; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration (“DEA”) - Washington Division; and Special Agent in Charge Troy W. Springer of the National Capital Region U.S. Department of Labor - Office of Inspector General (“DOL-OIG”).
According to his guilty plea, from at least November 2019 to November 2020, Bailey led a drug trafficking organization (DTO) that was responsible for distributing kilogram quantities of controlled substances, including heroin, fentanyl, cocaine and MDMA in and around Baltimore.
As detailed in his plea agreement, between June and November 2020, law enforcement intercepted communications from multiple cellphones used by Bailey in connection with his drug activities, including “source” phones, which Bailey used to communicate with sources of drug supply, and “shop” phones with Bailey used to communicate with downstream distributors.
The intercepted communications revealed that Bailey obtained heroin from a Mexican-based DTO. The Mexican DTO’s middleman in New York City delivered narcotics to, and received payments from, Bailey on behalf of the Mexican DTO.
Bailey admitted that he obtained cocaine from a source of supply in Philadelphia, Pennsylvania, through a co-conspirator who was a Baltimore-area cocaine wholesaler. Bailey also recruited another individual to serve as a courier to transport cocaine from Philadelphia to Baltimore on behalf of Bailey. On at least five separate occasions Bailey and a co-conspirator acquired kilograms of cocaine from the Philadelphia source and directed the courier that Bailey recruited to bring the cocaine back to Baltimore.
According to the plea agreement, Bailey maintained a network of wholesale drug redistributors who sold the drugs supplied by Bailey to their own customers. In addition, Bailey rented an apartment on Heath Street in Baltimore which he used as a stash location to store and process drugs for redistribution.
Finally, Bailey admitted that he used the proceeds of bank fraud to pay the rent on the apartment. Specifically, Bailey’s used pandemic-related unemployment insurance benefits that were fraudulently issued to an inmate, T.S., on a bank debit card in July 2020. Bailey contacted the bank, posing as T.S. and requested that the PIN on the card be reset. Bailey confirmed the card number and the average card balance, which was $19,230.45. Bailey then used the funds on the card to purchase four $500 U.S. Postal Service money orders. Bailey used $1,000 of the money orders toward his down payment on a new Acura MDX and the remaining money orders, marked payable from the individual in whose name Bailey rented the Heath Street apartment, toward the rent on the apartment.
On November 16, 2020, law enforcement executed a search warrant at Bailey’s residence and recovered 13 cell phones, men’s designer watches and other jewelry, and $8,980 in cash. Bailey later admitted that the cash and jewelry represented proceeds from the sale of controlled substances or money intended to be used to purchase controlled substances. Searches of the Heath Street apartment recovered drug paraphernalia, including digital scales, drug cutting agents and hydraulic presses and controlled substances, including over 215 grams of a mixture of fentanyl, heroin, methamphetamine, and tramadol; and 301 grams of eutylone, a controlled substance analogous to MDMA.
Bailey was the last defendant in this 13-defendant case to be sentenced. Eleven co-defendants pleaded guilty to their roles in the DTO and were sentenced to between one and six years in federal prison and one defendant passed away after being indicted.
This prosecution is part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Baltimore Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region. The Baltimore SF is comprised of agents and officers from the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the U.S. Postal Inspection Service, the U.S. Secret Service, the Baltimore Police Department, the Baltimore City Sheriff’s Office, the Baltimore City State’s Attorney’s Office, the Anne Arundel County Police Department, the Baltimore County Police Department, the Maryland Department of Public Safety and Correctional Services, the Maryland National Guard, the Maryland State Police, and the Maryland Transportation Authority, and the prosecution is being led by the Office of the United States Attorney for the District of Maryland.
United States Attorney Erek L. Barron commended the FBI, DEA, and the DOL-OIG for their work in the investigation and recognized the U.S. Postal Inspection Service for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Jeffrey J. Izant and Anatoly Smolkin, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
# # #
Lawrence Man Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man pleaded today in federal court in Boston to his role in a fentanyl trafficking conspiracy.
Fraily Rodriguez Morillo, 26, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue; three counts of distribution and possession with intent to distribute 40 grams or more of fentanyl; and one count of distribution and possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue. U.S. District Chief Judge F. Dennis Saylor, IV scheduled sentencing for May 7, 2024.
Morillo was indicted by a federal grand jury along with Melvin Antonio Perez Medina and Manuel Fredis Guerrero Guzman in November 2022.
Between March 2022 and August 2022, Morillo, Perez Medina and, allegedly, Guzman conspired to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue, in Lawrence, Woburn, Wilmington and Andover. Specifically, Morillo distributed 50 grams of fentanyl to a cooperating witness in Lawrence on two occasions in April 2022. Later, in July 2022, Morillo worked with Perez Medina to distribute nearly 130 grams of fentanyl on one occasion, and over 560 grams of a mixture of fentanyl and p-fluorofentanyl (a fentanyl analogue) on another occasion, to a cooperating witness and Woburn.
In August 2022, Perez Medina was arrested and found in possession of nearly two kilograms of a mixture containing fentanyl and a fentanyl analogue. The nearly two kilograms were found secreted inside of a cereal box.
On Jan. 18, 2024, Perez Medina was sentenced to 64 months in prison and three years of supervised release after previously pleasing guilty to his role in the conspiracy.
The charges of conspiracy to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue and of possession with intent to distribute and/or distribution of 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue each provide for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of distribution and/or possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 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; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. The Massachusetts Department of Correction; the Norfolk County Sheriff’s Office; and the Watertown, Reading, Peabody, Hudson, Concord and Waltham Police Departments provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lackawanna County Woman Pleads Guilty to Conspiracy to Steal Major Artworks and Sports MemorabiliaRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dawn Trotta, age 52, of Covington Township, Pennsylvania, entered a guilty plea to conspiracy to commit theft of major artwork, concealment or disposal of objects of cultural heritage, and interstate transportation of stolen property, a federal Felony.
On February 9, 2024, Trotta admitted in court to the Honorable District Judge Malachy E. Mannion, that from on or about August of 1999 and continuing through in or about April of 2019, in the Middle District of Pennsylvania, and elsewhere, that she intentionally conspired with others commit engage in a scheme to steal major artwork and objects of cultural heritage, and to move the stolen property in interstate commerce.
Eight other individuals have been charged in the same conspiracy. Thomas Trotta, age 48, of Moscow, Pennsylvania, Frank Tassiello, age 51, of Scranton, Pennsylvania, Daryl Rinker, age 50, of Thornhurst, Pennsylvania, and Ralph Parry, age 45, of Covington Township, Pennsylvania, were all charged by felony information and have already pleaded guilty.
On June 6, 2023, a federal grand jury indicted Nicholas Dombek, age 53, of Thornhurst, Pennsylvania, Damien Boland, age 47, of Moscow, Pennsylvania, Alfred Atsus, age 47, of Covington Township, Pennsylvania, and Joseph Atsus, age 49, of Roaring Brook, Pennsylvania, with conspiracy and the substantive counts of theft of major artwork and the concealment or disposal of objects of cultural heritage. Dombek was further charged with a substantive count of interstate transportation of stolen property. They are presently pending trial.
According to United States Attorney Gerard M. Karam, the indictment and informations charge the nine individuals with conspiring over a period of 20 years to break into multiple museums and other institutions and steal priceless works of art, sports memorabilia, and other objects. Those objects include the following:
- A Christy Matthewson jersey and two contracts signed by Matthewson stolen in 1999 from Keystone College in Factoryville, Pennsylvania;
- “Le Grande Passion” by Andy Warhol and “Springs Winter” stolen in 2005 from the Everhart Museum in Scranton, Pennsylvania;
- Nine (9) World Series rings, seven (7) other championship rings, and two (2) MVP plaques all belonging to Yogi Berra, worth over $1,000,000 stolen in 2014 from the Yogi Berra Museum & Learning Center in Little Falls, New Jersey;
- Six (6) championship belts, including four belonging to Carmen Basillio and two belonging to Tony Zale stolen in 2015 from the International Boxing Hall of Fame in Canastota, New York;
- The Hickok Belt and MVP Trophy belonging to Roger Maris, stolen in 2016 from the Roger Maris Museum in Fargo, North Dakota;
- The U.S. Amateur Trophy and a Hickok Belt awarded to Ben Hogan, stolen in 2012 from the USGA Golf Museum & Library;
- Fourteen (14) trophies and other awards worth over $300,000 stolen in 2012 from the Harness Racing Museum & Hall of Fame in Goshen, New York;
- Five (5) trophies worth over $400,000, including the 1903 Belmont Stakes Trophy, stolen in 2013 from the National Racing Museum & Hall of Fame in Saratoga Springs, New York;
- Eleven (11) trophies, including 4 belonging to Art Wall, Jr. stolen in 2011 from the Scranton Country Club located in Clarks Summit, Pennsylvania;
- Three antique firearms worth a combined $1,000,000 stolen in 2006 from Space Farms: Zoo & Museum in Wantage, New Jersey;
- An 1903/1904 Tiffany Lamp stolen in 2010 from the Lackawanna Historical Society in Scranton, Pennsylvania,
- “Upper Hudson” by Jasper Crospey, worth approximately $500,000, stolen in 2011 from Ringwood Manor in Ringwood, New Jersey;
- Two antique firearms worth over $300,000, stolen in 2011 from Ringwood Manor in Ringwood, New Jersey;
- $400,000 worth of gold nuggets stolen in 2011 from the Sterling Hill Mining Museum in Ogdensburg, New Jersey;
- Various gems, minerals, and other items stolen in 2017 from the Franklin Mineral Museum in Franklin, New Jersey;
- An antique shotgun worth over $30,000 stolen in 2018 from Space Farms: Zoo & Museum in Wantage, New Jersey;
- Various jewelry, rings, and other items from various antique and jewelry stores in New York, Rhode Island, and Pennsylvania.
The indictment and informations further allege that after stealing the above-described items, the conspirators would transport the stolen goods back to northeastern Pennsylvania, often the residence of Dombek, and melt the memorabilia down into easily transportable metal discs or bars. The conspirators would then sell the raw metal to fences in the New York City area for hundreds or thousands of dollars, significantly less than the stolen items would be worth at fair market value.
The indictment and informations further allege that Dombek burnt the painting “Upper Hudson” by Jasper Crospey, valued at approximately $500,000, to avoid the painting being recovered by investigators and used as evidence against the members of the conspiracy. The whereabouts of many of the other paintings and stolen objects are currently unknown.
The matter was investigated by the Federal Bureau of Investigation (FBI), the Pennsylvania State Police, the New Jersey State Police, the New York State Police, the New Jersey State Park Police, the Newport Police Department (Rhode Island), the Fargo Police Department (North Dakota), the Chester Police Department (New York), the Exeter Borough Police Department (Pennsylvania), the Scranton Police Department, the Franklin Police Department (New Jersey), the Village of Goshen Police Department (New York), the Metropolitan Police Department (Washington, D.C.), the West Milord Township Police Department (New Jersey), the Montclair Police Department (New Jersey), the Saratoga Springs Police Department (New York), the Canastota Police Department (New York), the South Abington Police Department (Pennsylvania), the Bernards Township Police Department (New Jersey), the Salisbury Township Police Department (Pennsylvania), the Montclair State University Police Department (New Jersey) the Lackawanna County District Attorney’s Office (Pennsylvania), the Sussex County Prosecutor’s Office (New Jersey), the Essex County Prosecutor’s Office (New Jersey), the Orange County District Attorney’s Office (New York), the Madison County District Attorney’s Office (New York), and multiple other local law enforcement agencies from across the country. Assistant United States Attorney James M. Buchanan is prosecuting the case.
Sentencing for Dawn Trotta is not yet scheduled. Trotta faces a maximum penalty of imprisonment for a term of five years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Indictments and informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Kern County Resident Pleads Guilty to Distributing ExplosivesRead the Press Release
FRESNO, Calif. — Joseph Roy Vigneault, 21, of Lake Isabella, pleaded guilty today to distributing explosives to a non-licensed person, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2023, Vigneault and Michael Roy Anglin, 21, of Wofford Heights, sold and delivered six full boxes and one partial box of Hydromite weighing a total of approximately 350 pounds to a non-licensed person. Neither Vigneault, Anglin, nor the buyer were licensed to handle or transport explosives as required by federal law. Vigneault knew or had reason to believe that the Hydromite was stolen. The boxes containing the explosives were labeled “Explosive, Blasting, Type E” and “Blasting Agent.” The sticks of Hydromite were also individually labeled “Danger” and “Explosive.” Hydromite is a high explosive containing ammonium nitrate and is used as a blasting agent.
Austin Powder West LLC, a licensed explosives manufacturer, confirmed that 295 sticks of Hydromite, weighing approximately 702.1 pounds, went missing from its Lake Isabella storage facility sometime between May 6 and May 11, 2023. The missing explosives included the boxes that Vigneault sold. The value of the unrecovered explosives is $7,603. Vigneault agreed to make restitution to Austin Powder in that amount.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Kern County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Vigneault is scheduled for sentencing on May 20, 2024. Vigneault faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. 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.
Charges are pending against Anglin. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Iowa City Man Sentenced to 180 Months in Federal Prison for Child Pornography ChargesRead the Press Release
DAVENPORT, Iowa – An Iowa City man was sentenced on Thursday, February 1, 2024, to 180 months in federal prison for Receipt or Distribution of Child Pornography.
According to public court documents presented at the time of the plea hearing, Michael Joseph Schmidt, 27, was identified by the Johnson County, Iowa Sheriff’s Office Joint Forensic Analysis Cyber Team (JFACT) for uploading child sexual abuse material to Kik. In April 2022, agents executed a search warrant on Schmidt’s residence. Multiple electronic devices were located at Schmidt’s residence that contained numerous images of child sexual abuse material.
After completing his term of imprisonment, Schmidt is required to serve five years of supervised release. There is no parole in the federal system. Schmidt was also ordered to pay $6,000 in restitution.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by JFACT.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. / For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.
Huntington Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
HUNTINGTON, W.Va. – George West, 53, of Huntington, pleaded guilty today to aggravated identity theft.
According to court documents and statements made in court, on January 12, 2022, West was employed by a Huntington business when he forged the name of the business’s owner on a $780 check that West wrote on the business’s bank account. West gave the forged check to his then-roommate for rent that West owed. West admitted that he was not authorized to write the check or to sign it with the owner’s name, and that he was not entitled to the money. West further admitted that he falsely told the roommate that the check represented money owed by the business owner to West, and that the owner made the check payable to the roommate to cover West’s debt.
West also stole two checks from the roommate, writing each for $780 to pay two month’s worth of rent and signing them with his roommate’s name. West admitted that he was not entitled to that money, and that he knew that his roommate had not authorized him to write the checks or sign them in his name.
West is scheduled to be sentenced on May 28, 2024, and faces a mandatory minimum of two years in prison, one year of supervised release, and a $250,000 fine. West also owes $14,456.45 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Huntington Police Department, and the Charleston Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Jonathan T. Storage is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-89.
###
Holy Health Care Services, LLC Program Administrator Sentenced to Five Years in Federal Prison for a Health Care Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Lambert Mbom, age 50, of Riverdale, Maryland, to five years in federal prison, followed by three years of supervised release, for conspiracy to commit health care fraud and wire fraud and for conspiracy to make false statements relating to health care matters in connection with a scheme to fraudulently bill Medicaid. The defendant’s conviction stems from a scheme involving services purportedly provided by Holy Health Care Services, LLC (“Holy Health”), a mental health services provider with locations in Washington, D.C. Judge Xinis also ordered Mbom to pay restitution in the full amount of the loss, $4,450,588.66. The sentence was imposed on February 8, 2024.
The guilty verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge David J. Scott of the FBI Washington Field Office’s Criminal and Cyber Division; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (“HHS OIG”); and Daniel W. Lucas, Inspector General for the District of Columbia.
According to evidence presented at Mbom’s six-day trial, he was a program administrator at Holy Health. Holy Health entered into Medicaid Provider Agreements with the District of Columbia’s Department of Health Care Finance (“DHCF”), to provide healthcare services to D.C. Medicaid recipients and was certified by the District of Columbia’s Department of Behavioral Health (“DBH”) to provide mental health services as a freestanding clinic and as a Mental Health and Rehabilitation Services (“MHRS”) provider. As a certified MHRS provider, Holy Health had authority to provide and bill for a variety of mental health services including “community support” – a service for which community support workers (“CSWs”) provide rehabilitative and educational support to mental health patients both in clinical settings and in the community.
According to evidence presented at trial, Mbom and his co-conspirators paid to Medicaid beneficiaries to induce the beneficiaries to visit Holy Health for mental health services. As detailed in trial testimony, Mbom and his co-conspirators caused claims to be submitted by Holy Health to Medicaid for services, including community support services, purportedly provided to Medicaid beneficiaries.
As detailed in trial testimony, Mbom and his co-conspirators paid individuals to come into the office and then used their personally identifiable information (“PII”) to bill Medicaid for services that were not rendered or were not rendered as billed. The evidence proved that Mbom made up fake Holy Health employees who were purportedly Community Support Workers so that he could bill Medicaid for services provided by these fake employees. Witnesses testified that during the investigation, sources posing as mental health patients were sent to Holy Health to obtain community support services. Not only did the sources not receive the services as billed, but Holy Health billed for CSW services for those patients for visits that never happened.
The jury acquitted Mbom of conspiring to violate the Anti-Kickback Statute.
The owners of Holy Health, Julius Bakari, age 46, and Mboutchock Kabiwa a/k/a “Eugenie Bakari” or “Eugenie Kabiwa,” age 46, both of Silver Spring, Maryland, previously pleaded guilty to conspiracy to commit health care fraud in connection with a scheme to pay bribes and kickbacks to Medicaid beneficiaries to induce the beneficiaries to visit their company. Kabiwa was sentenced to 20 months in federal prison and was ordered to pay restitution of $3,493,681. Bakari is scheduled to be sentenced on April 9, 2024.
United States Attorney Erek L. Barron commended the FBI, the HHS OIG, and the District of Columbia Office of Inspector General’s Medicaid Fraud Control Unit for their work in the investigation and the support provided by the District Department of Health Care Finance Division of Program Integrity during the investigation. Mr. Barron thanked Assistant U.S. Attorneys Christopher M. Sarma and Megan S. McKoy, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
# # #
Greenup County Man Sentenced to 45 Years for Production of Child PornographyRead the Press Release
ASHLAND, Ky. – An Ashland man, William Lucas Ferguson, 28, was sentenced on Monday, by U.S. District Judge David Bunning, to 45 years in prison, for two counts of producing child pornography.
According to his plea agreement, in June 2022, law enforcement was alerted that Ferguson had sexually explicit images and videos of a minor victim on his phone. Law enforcement interviewed Ferguson and, during a consensual search of his phone, located multiple images of Ferguson sexually assaulting a minor child. Ferguson admitted that he was the adult in the images and that he had produced the sexually explicit images of the minor victim, on multiple occasions.
Under federal law, Ferguson 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 20 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and W. Todd Kelley, Chief of the Ashland Police Department, jointly announced the sentence.
The investigation was conducted by FBI, KSP, and the Ashland Police Department. Assistant U.S. Attorney Erin Roth is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
— END —
Georgia Man Sentenced for Bank Fraud Conspiracy and Identity TheftRead the Press Release
CONCORD – A Georgia man was sentencing today in federal court in Concord for conspiracy to commit bank fraud and two counts of aggravated identity theft, United States Attorney Jane E. Young announces.
Lester Aceituno, 40, was sentenced by Chief United States District Court Judge Landya B. McCafferty to 30 months in prison. The defendant was convicted by a federal jury on November 3, 2023, after a five-day trial. Aceituno and his two co-defendants, Kizito Chukwujekwu and Chinedu Ihejiere, were indicted on August 24, 2020. Kizito Chukwujekwu pleaded guilty to conspiracy to commit bank fraud and was sentenced on November 23, 2021. Co-defendant Kizito Chukwujekwu pleaded guilty to conspiracy to commit bank fraud and was sentenced on November 23, 2021.
“The defendant and his co-conspirators brazenly stole and used other identities to achieve their scheme,” said U.S. Attorney Jane E. Young. “Today’s sentence sends a clear message to fraudsters like the defendant that such activity will not be tolerated, and this Office will continue to aggressively prosecute those who victimize members of the public.”
“Lester Aceituno saw it as easy money,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “He stole the identities of unsuspecting victims and amassed tens of thousands of dollars. What he didn’t account for was the FBI and our partners catching him. Anyone who engages in this sort of criminal behavior should know the FBI is hard at work rooting out financial fraudsters like him and bringing them to justice like we did in this case.”
“The U.S. Postal Inspection Service will aggressively investigate and seek prosecution of individuals like Lester Aceituno, who along with his co-conspirators, stole identities and cashed out on the scheme,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “The burden of identity theft for victims is financially devastating and creates significant inconveniences. We will continue to support and collaborate with our federal law enforcement partners to stop those who are engaged in these types of schemes.”
Between June of 2016 and October of 2017, Aceituno and others used stolen identities to open accounts at banks in New Hampshire, Massachusetts, and Georgia. Aceituno opened or accessed post office boxes in Massachusetts and Georgia to receive debit cards and pin numbers to access these accounts. Aceituno’s co-conspirators then deposited fraudulent checks totaling more than $119,000. After the money was credited to the accounts, but before the bank determined the checks were false, one of Aceituno’s co-conspirators withdrew the money and gave it to another co-conspirator, the leader of the scheme.
The United States Postal Inspection Service and the Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Brockton, Massachusetts Police Department, Homeland Security Investigations, and the Social Security Administration Office of the Inspector General. Assistant U.S. Attorneys Matthew T. Hunter and Geoffrey W.R. Ward are prosecuting the case.
###