Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
12 February 2024
Former Puerto Rico Mayor Sentenced for Bribery SchemeRead the Press Release
The former mayor of the municipality of Guaynabo, Puerto Rico, was sentenced today to five years and three months in prison for his involvement in a bribery scheme in which he received cash payments in exchange for awarding municipal contracts and expedited payment of invoices related to those contracts.
According to court documents and evidence presented at trial, Ángel Pérez-Otero, 53, was involved in a bribery conspiracy in which, from approximately late 2019 through May 2021, he accepted thousands of dollars in cash bribes on a regular basis from the owner of a construction company. In exchange for those payments, Pérez-Otero agreed to obtain and retain government contracts for the company and ensured that the company’s invoices were promptly paid.
In March, a federal jury convicted Pérez-Otero of conspiracy, federal program bribery, and extortion.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the case.
Trial Attorney Nicholas Cannon of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Myriam Fernández-González for the District of Puerto Rico prosecuted the case. PIN Trial Attorney Ryan R. Crosswell and Assistant U.S. Attorney Scott H. Anderson for the District of Puerto Rico assisted in the investigation.
This case is a part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matter, PIN and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. See United States v. Félix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); United States v. Raymond Rodríguez, 21-465 (RAM); United States v. Mario Villegas-Vargas, 21-468 (FAB); United States v. Radamés Benítez-Cardona, 21-475 (PAD); United States v. Luis Arroyo-Chiques, 21-485 (SCC); United States v. Eduardo Cintron-Suarez, 22-151 (SCC); United States v. Javier Garcia-Perez, 22-185 (ADC); United States v. Reinaldo Vargas-Rodriguez, 22-186 (PAD); United States v. Ramon Conde-Melendez, 22-221 (PAD); United States v. Pedro Miranda-Marrero, 22-251 (RAM); United States v. Jose Cruz-Cruz, 22-276 (SCC); and United States Jose Bou-Santiago, 22-379 (ADC).
Former Kansas bank executive charged with embezzling $47 millionRead the Press Release
WICHITA, KAN. – The U.S. Attorney’s Office – District of Kansas has charged a Kansas man by information with embezzling millions of dollars from his former employer. An information is an accusation exhibited against a person for a criminal offense without an indictment from a grand jury.
According to court documents, Shan Hanes, 52, of Elkhart is charged with one count of bank embezzlement.
Hanes previously served as the chief executive officer of Heartland Tri-State based in Elkhart. Hanes is accused of intentionally defrauding the bank by willfully misapplying and embezzling approximately $47.1 million. He allegedly did this by initiating a series of wire transfers between May 2023 and July 2023 to purchase cryptocurrency for his personal benefit.
The defendant is scheduled for his initial court appearance February 28, 2024, before U.S. Magistrate Judge Gwynne E. Birzer of the U.S. District Court for the District of Kansas.
If convicted, Hanes faces a maximum penalty 30 years in prison.
The Federal Bureau of Investigation (FBI), Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG), Federal Reserve Board - Office of Inspector General (FRB-OIG), and Federal Housing Finance Agency – Office of Inspector General ((FHFA-OIG) are investigating the case.
Assistant U.S. Attorney Aaron Smith is prosecuting the case.
An information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Former Iranian-Owned Boeing Aircraft Successfully Returned to the United StatesRead the Press Release
WASHINGTON – The Department of Justice today completed enforcement of a final order for forfeiture of a U.S.-manufactured Boeing 747 cargo plane, previously owned by Mahan Air, a sanctioned Iranian airline affiliated with the Islamic Revolutionary Guard Corp-Qods Force (IRGC-QF), a designated Foreign Terrorist Organization (FTO).
On February 11, 2024, the government of Argentina transferred physical custody of the aircraft to the United States pursuant to the final order of forfeiture, which was issued by the U.S. District Court for the District of Columbia on May 3, 2023, which rests all right, title, and interest in the aircraft in the United States of America. The Boeing 747 cargo plane arrived in the Southern District of Florida where it will be prepared for disposition.
“Using a whole-of-government approach, we have worked with our international partners to forfeit a plane transferred by Iranian entities in violation of U.S. sanctions and export control laws,” said U.S. Attorney Matthew M. Graves. “Foreign adversaries - seeking to illegally use American-made products to further their endeavors - need to know that the United States government will work with the international community to hold them accountable for their illegal conduct. The United States appreciates the collaboration with our Argentinian law enforcement and judicial partners.”
“The United States’ forfeiture of the Boeing 747 cargo plane culminates over 18 months of planning, coordination, and execution by the United States government and our Argentine counterparts,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Bad actors – both near and far – are on alert that the United States will use all its tools to hold those who violate our laws to account. The successful seizure of the Boeing 747 underscores our commitment to prevent the illegal exportation of U.S. technologies and enforce U.S. export control laws.”
“The seized American-built aircraft was transferred by a sanctioned Iranian airline in a transaction that violated U.S. export control laws and directly benefited the Islamic Revolutionary Guard Corps, which is a designated terrorist organization,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department is committed to ensuring that the full force of U.S. laws deny hostile state actors the means to engage in malign activities that threaten our national security.”
“Mahan Air – known to ferry weapons and fighters for the Islamic Revolutionary Guard Corps and Hizballah – violated our export restrictions by selling this airplane to a Venezuelan cargo airline. Now, it’s property of the United States government,” said Assistant Secretary of Export Enforcement’s Matthew S. Axelrod. “This seized airplane’s arrival in the United States is a powerful example of our unceasing efforts to prevent Iran and its proxies from leveraging and profiting from U.S. technology.”
The plane was previously detained by Argentine law enforcement. On July 19, 2022, the U.S. District Court for the District of Columbia issued a seizure warrant for the aircraft, which Argentine authorities promptly enforced. On Oct. 20, 2022, in support of its ongoing criminal investigation, the United States filed a civil forfeiture complaint alleging that the aircraft’s transfer from Mahan Air to Empresa de Transporte Aéreocargo del Sur, S.A. (EMTRASUR), a Venezuelan cargo airline and subsidiary of Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos, S.A (CONVIASA), a Venezuelan state-owned company, violated U.S. export control laws. As alleged, Mahan Air was subject to a Department of Commerce Temporary Denial Order, which prohibited, among other things, Mahan Air from engaging in any transactions involving any commodity exported from the United States that is subject to the Export Administration Regulations. The complaint further alleged that the unauthorized transfer of this aircraft directly benefited the IRGC-QF.
According to court documents, the registered captain of the aircraft was an ex-commander for the IRGC and a shareholder and member of the board of a second sanctioned Iranian airline, Qeshm Fars Air, affiliated with the IRGC-QF. Argentinian law enforcement also recovered a Mahan Air flight log documenting the aircraft’s flights after the unlawful transfer to EMTRASUR and confirmed additional violations of U.S. export control laws between February and May 2022 when EMTRASUR reexported the aircraft between Caracas, Venezuela; Tehran, Iran; and Moscow, Russia, without U.S. Government authorization.
This matter is being investigated by the Department of Commerce Bureau of Industry and Security’s Miami Field Office and the FBI Miami Field Office.
Assistant U.S. Attorney Rajbir Datta for the District of Columbia, Assistant U.S. Attorney Andy R. Camacho for the Southern District of Florida, and Trial Attorney Alexander Wharton of the National Security Division’s Counterintelligence and Export Control Section are handling the seizure and investigation, with assistance from Paralegal Specialist Brian Rickers and Legal Assistant Jessica McCormick. Senior Trial Attorney John Beasley and Trial Attorney Jesse Ormsby of the Justice Department’s Office of International Affairs; Special Agent Adam Mastriani and Task Force Officer Robert Cunniff of the FBI Miami Field Office; and Ricardo Hernandez of the FBI’s Legal Attaché in Buenos Aires provided significant assistance in working with the Argentine authorities, led by Argentine Federal Judge Federico Villena and the U.S. Marshals Service to manage the difficult logistics and coordination of the physical transfer of the Boeing aircraft from Argentina to the United States.
Former Iranian-Owned Boeing Aircraft Successfully Returned to the United StatesRead the Press Release
The Department of Justice today completed enforcement of a final order for forfeiture of a U.S.-manufactured Boeing 747 cargo plane, previously owned by Mahan Air, a sanctioned Iranian airline affiliated with the Islamic Revolutionary Guard Corp-Qods Force (IRGC-QF), a designated Foreign Terrorist Organization (FTO).
On Feb. 11, the government of Argentina transferred physical custody of the aircraft to the United States pursuant to the final order of forfeiture, which was issued by the U.S. District Court for the District of Columbia on May 3, 2023, which rests all right, title, and interest in the aircraft in the United States of America. The Boeing 747 cargo plane arrived in the Southern District of Florida where it will be prepared for disposition.
“The seized American-built aircraft was transferred by a sanctioned Iranian airline in a transaction that violated U.S. export control laws and directly benefited the Islamic Revolutionary Guard Corps, which is a designated terrorist organization,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department is committed to ensuring that the full force of U.S. laws deny hostile state actors the means to engage in malign activities that threaten our national security.”
“Mahan Air – known to ferry weapons and fighters for the Islamic Revolutionary Guard Corps and Hizballah – violated our export restrictions by selling this airplane to a Venezuelan cargo airline. Now, it’s property of the United States government,” said Assistant Secretary of Export Enforcement’s Matthew S. Axelrod. “This seized airplane’s arrival in the United States is a powerful example of our unceasing efforts to prevent Iran and its proxies from leveraging and profiting from U.S. technology.”
“The United States’ forfeiture of the Boeing 747 cargo plane culminates over 18 months of planning, coordination, and execution by the United States government and our Argentine counterparts,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Bad actors – both near and far – are on alert that the United States will use all its tools to hold those who violate our laws to account. The successful seizure of the Boeing 747 underscores our commitment to prevent the illegal exportation of U.S. technologies and enforce U.S. export control laws.”
“Using a whole-of-government approach, we have worked with our international partners to forfeit a plane transferred by Iranian entities in violation of U.S. sanctions and export control laws,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Foreign adversaries – seeking to illegally use American-made products to further their endeavors – need to know that the United States government will work with the international community to hold them accountable for their illegal conduct. The United States appreciates the collaboration with our Argentinian law enforcement and judicial partners.”
“The transfer of this plane to U.S. custody is the final step in the long process to bring this case to its rightful conclusion,” said Executive Assistant Director Larissa L. Knapp of the FBI's National Security Branch “The FBI, along with our federal government and international partners, used every tool under our authorities to hold the Iranian government and their affiliates accountable for violating U.S. laws.”
The plane was previously detained by Argentine law enforcement. On July 19, 2022, the U.S. District Court for the District of Columbia issued a seizure warrant for the aircraft, which Argentine authorities promptly enforced. On Oct. 20, 2022, in support of its ongoing criminal investigation, the United States filed a civil forfeiture complaint alleging that the aircraft’s transfer from Mahan Air to Empresa de Transporte Aéreocargo del Sur, S.A. (EMTRASUR), a Venezuelan cargo airline and subsidiary of Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos, S.A (CONVIASA), a Venezuelan state-owned company, violated U.S. export control laws. As alleged, Mahan Air was subject to a Department of Commerce Temporary Denial Order, which prohibited, among other things, Mahan Air from engaging in any transactions involving any commodity exported from the United States that is subject to the Export Administration Regulations. The complaint further alleged that the unauthorized transfer of this aircraft directly benefited the IRGC-QF.
According to court documents, the registered captain of the aircraft was an ex-commander for the IRGC and a shareholder and member of the board of a second sanctioned Iranian airline, Qeshm Fars Air, affiliated with the IRGC-QF. Argentinian law enforcement also recovered a Mahan Air flight log documenting the aircraft’s flights after the unlawful transfer to EMTRASUR and confirmed additional violations of U.S. export control laws between February and May 2022 when EMTRASUR reexported the aircraft between Caracas, Venezuela; Tehran, Iran; and Moscow, Russia, without U.S. Government authorization.
This matter is being investigated by the Department of Commerce Bureau of Industry and Security’s Miami Field Office and the FBI Miami Field Office.
Assistant U.S. Attorney Rajbir Datta for the District of Columbia, Assistant U.S. Attorney Andy R. Camacho for the Southern District of Florida, and Trial Attorney Alexander Wharton of the National Security Division’s Counterintelligence and Export Control Section are handling the seizure and investigation, with assistance from Paralegal Specialist Brian Rickers and Legal Assistant Jessica McCormick. Senior Trial Attorney John Beasley and Trial Attorney Jesse Ormsby of the Justice Department’s Office of International Affairs; Special Agent Adam Mastriani and Task Force Officer Robert Cunniff of the FBI Miami Field Office; the U.S. Department of State’s Diplomatic Security Service; and Ricardo Hernandez of the FBI’s Legal Attaché in Buenos Aires provided significant assistance in working with the Argentine authorities, led by Argentine Federal Judge Federico Villena and the U.S. Marshals Service to manage the difficult logistics and coordination of the physical transfer of the Boeing aircraft from Argentina to the United States.
Former Iranian-Owned Boeing Aircraft Successfully Returned to the United StatesRead the Press Release
MIAMI – The Department of Justice today completed enforcement of a final order for forfeiture of a U.S.-manufactured Boeing 747 cargo plane, previously owned by Mahan Air, a sanctioned Iranian airline affiliated with the Islamic Revolutionary Guard Corp-Qods Force (IRGC-QF), a designated Foreign Terrorist Organization (FTO).
On Feb. 11, the government of Argentina transferred physical custody of the aircraft to the United States pursuant to the final order of forfeiture, which was issued by the U.S. District Court for the District of Columbia on May 3, 2023, which rests all right, title, and interest in the aircraft in the United States of America. The Boeing 747 cargo plane arrived in the Southern District of Florida where it will be prepared for disposition.
“The United States’ forfeiture of the Boeing 747 cargo plane culminates over 18 months of planning, coordination, and execution by the U.S. government and our Argentine counterparts,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Bad actors — both near and far — are on alert that the United States will use all its tools to hold those who violate our laws to account. The successful seizure of the Boeing 747 underscores our commitment to prevent the illegal exportation of U.S. technologies and enforce U.S. export control laws.”
“Using a whole-of-government approach, we have worked with our international partners to forfeit a plane transferred by Iranian entities in violation of U.S. sanctions and export control laws,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Foreign adversaries — seeking to illegally use American-made products to further their endeavors — need to know that the United States government will work with the international community to hold them accountable for their illegal conduct. The United States appreciates the collaboration with our Argentinian law enforcement and judicial partners.”
“The seized American-built aircraft was transferred by a sanctioned Iranian airline in a transaction that violated U.S. export control laws and directly benefited the Islamic Revolutionary Guard Corps, which is a designated terrorist organization,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department is committed to ensuring that the full force of U.S. laws deny hostile state actors the means to engage in malign activities that threaten our national security.”
“Mahan Air — known to ferry weapons and fighters for the Islamic Revolutionary Guard Corps and Hizballah — violated our export restrictions by selling this airplane to a Venezuelan cargo airline. Now, it’s property of the U.S. government,” said Assistant Secretary of Export Enforcement’s Matthew S. Axelrod of the Department of Commerce. “This seized airplane’s arrival in the United States is a powerful example of our unceasing efforts to prevent Iran and its proxies from leveraging and profiting from U.S. technology.”
“The transfer of this plane to U.S. custody is the final step in the long process to bring this case to its rightful conclusion,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch “The FBI, along with our federal government and international partners, used every tool under our authorities to hold the Iranian government and their affiliates accountable for violating U.S. laws.”
Boeing 747 cargo plane, the target aircraft, taken Sept. 6, 2019.
The plane was previously detained by Argentine law enforcement. On July 19, 2022, the U.S. District Court for the District of Columbia issued a seizure warrant for the aircraft, which Argentine authorities promptly enforced. On Oct. 20, 2022, in support of its ongoing criminal investigation, the United States filed a civil forfeiture complaint alleging that the aircraft’s transfer from Mahan Air to Empresa de Transporte Aéreocargo del Sur, S.A. (EMTRASUR), a Venezuelan cargo airline and subsidiary of Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos, S.A (CONVIASA), a Venezuelan state-owned company, violated U.S. export control laws. As alleged, Mahan Air was subject to a Department of Commerce Temporary Denial Order, which prohibited, among other things, Mahan Air from engaging in any transactions involving any commodity exported from the United States that is subject to the Export Administration Regulations. The complaint further alleged that the unauthorized transfer of this aircraft directly benefited the IRGC-QF.
According to court documents, the registered captain of the aircraft was an ex-commander for the IRGC and a shareholder and member of the board of a second sanctioned Iranian airline, Qeshm Fars Air, affiliated with the IRGC-QF. Argentinian law enforcement also recovered a Mahan Air flight log documenting the aircraft’s flights after the unlawful transfer to EMTRASUR and confirmed additional violations of U.S. export control laws between February and May 2022 when EMTRASUR reexported the aircraft between Caracas, Venezuela; Tehran, Iran; and Moscow without U.S. government authorization.
The Department of Commerce Bureau of Industry and Security’s Miami Field Office and the FBI Miami Field Office are investigating the case.
Assistant U.S. Attorneys Andy R. Camacho for the Southern District of Florida and Rajbir Datta for the District of Columbia and, and Trial Attorney Alexander Wharton of the National Security Division’s Counterintelligence and Export Control Section are handling the seizure and investigation, with assistance from Paralegal Specialist Brian Rickers and Legal Assistant Jessica McCormick. Senior Trial Attorney John Beasley and Trial Attorney Jesse Ormsby of the Justice Department’s Office of International Affairs; Special Agent Adam Mastriani and Task Force Officer Robert Cunniff of the FBI Miami Field Office; and Ricardo Hernandez of the FBI’s Legal Attaché in Buenos Aires provided significant assistance in working with the Argentine authorities, led by Argentine Federal Judge Federico Villena and the U.S. Marshals Service to manage the difficult logistics and coordination of the physical transfer of the Boeing aircraft from Argentina to the United States.
###
Former Chief of Staff to Speaker of the Illinois House Sentenced to Two and a Half Years in Federal Prison for Lying Under Oath to Grand JuryRead the Press Release
CHICAGO — The former Chief of Staff to the Speaker of the Illinois House of Representatives was sentenced today to two and a half years in federal prison for providing false material testimony under oath to a federal grand jury and attempting to obstruct its investigation into allegations of public corruption.
U.S. District Judge John F. Kness imposed the sentence on TIMOTHY MAPES, 69, of Springfield, Ill. A jury in U.S. District Court in Chicago last year convicted Mapes of making false declarations before a grand jury and attempted obstruction of justice.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government was represented by Assistant U.S. Attorneys Julia Schwartz and Diane MacArthur.
Evidence presented at trial revealed that the grand jury was investigating possible violations of federal criminal law, including efforts by the Speaker of the House and a consultant acting on the Speaker’s behalf to obtain for others private jobs, contracts, and monetary payments, including from Commonwealth Edison (“ComEd”), the largest electric utility in Illinois, to influence and reward the Speaker in the Speaker’s official capacity. Mapes was granted immunity prior to his testimony before the grand jury. The immunity order provided that testimony or evidence provided by Mapes could not be used against him in a criminal case, except for perjury, giving a false statement, or otherwise failing to comply with the immunity order.
When Mapes appeared before the grand jury on March 31, 2021, he knowingly made false material declarations in response to several questions about the consultant’s relationship with the Speaker from 2017 to 2019. Mapes denied knowing that the consultant acted as an agent or performed work for the Speaker during those years, when, in fact, Mapes knew that the consultant carried out work and assignments on behalf of the Speaker and communicated messages on the Speaker’s behalf.
Former Carroll County Coach and Substitute Teacher Pleads Guilty to Federal Charge for Sexual Exploitation of a ChildRead the Press Release
Baltimore, Maryland – Evan Thomas Harris Frock age 34, of Taneytown, Maryland, has pleaded guilty to sexual exploitation of a child. Frock, a substitute teacher and volleyball coach in Carroll County, Maryland, posing as a teenager, used social media accounts to meet and communicate with children and to encourage them to produce and send to Frock images and videos of themselves engaged in sexually explicit activity. He remains detained on related state charges.
The guilty plea 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; Carroll County Sheriff James DeWees; Chief Gregory Der of the Howard County Police Department, and Carroll County State’s Attorney Haven Shoemaker.
According to his plea agreement, from 2021 through May 2022, Frock, pretending to be a minor male and a minor female, used a variety of aliases on several social media platforms to communicate with other users, including eight minor victims, ranging in age from 9 to 17 years old. Specifically, Frock used the internet-based accounts and aliases to persuade, induce, and coerce the victims to produce sexually explicit images and videos of themselves and send those images and videos to Frock. On at least one occasion, Frock distributed a sexually explicit video of a minor male and sent images of his own genitalia to the minors to induce them to reciprocate. Further, Frock possessed several hundred commercially available images and videos of child sexual abuse material that depicted toddlers, violence, and bestiality.
Frock faces a mandatory minimum sentence of 15 years in federal prison and a maximum sentence of 30 years for sexual exploitation of a child to produce child pornography. U.S. District Judge Brendan A. Hurson has scheduled sentencing for Frock on April 16, 2024, at 11:00 a.m.
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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI, the Carroll County Sheriff’s Office, the Howard County Police Department, and the Carroll County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorney Colleen E. McGuinn, who is prosecuting the federal 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
# # #
Felon Sentenced for Possessing Stolen Gun After Domestic DisputeRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to seven years in prison for possessing a firearm as a convicted felon.
According to court documents, Joseph Bush, 31, was arrested in Gilpin Court on July 28, 2022. On that date, Richmond Police Department officers responded to a report of a domestic assault. Bush’s girlfriend called 911 to report that Bush had hit her in the face and neck and scratched her wrist. He also took her phone and smashed it. The victim further reported that, earlier in July, Bush had pointed a firearm at her face.
While responding to the 911 call, the officers found Bush walking from the victim’s apartment. When an officer attempted to speak to him, Bush ran. After a foot pursuit, the officers detained Bush and recovered a loaded Glock 9mm handgun with an extended magazine from his pants leg. The firearm had been reported stolen three months earlier. In Bush’s pants pocket, officers found suboxone strips and cocaine. Officers found additional rounds of 9mm ammunition, rounds of .22 caliber ammunition, and a scale inside Bush’s bag.
Bush has prior convictions for robbery, use of a firearm in the commission of a felony, and being a violent felon in possession of a firearm. He committed the current offense within six months of his release from state prison and while he was on supervised probation.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Assistant U.S. Attorney Jessica L. Wright prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice 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.
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. 3:22-cr-163.
Drug Traffickers in Eastern Idaho Receive Federal Prison SentencesRead the Press Release
POCATELLO – Jeniffer Daniel Borchert, 30, of Pocatello, Amy Nacona Jagneaux, 48, also of Pocatello, and Joel Santos, 29, of Idaho Falls, were sentenced in separate cases for federal drug crimes involving fentanyl, methamphetamine, and firearms, U.S. Attorney Josh Hurwit announced today.
On February 5, 2024, Chief U.S. District Judge David C. Nye sentenced Borchert to five years in federal prison for distributing fentanyl. After serving her prison sentence, Borchert will be placed on supervised release for three years.
According to court records, Borchert, was arrested by detectives with the BADGES Task Force who conducted an operation during the summer of 2022 in which Borchert sold fentanyl pills to undercover law enforcement on multiple occasions.
In a separate case, on February 6, 2024, Chief Judge Nye sentenced Jagnueax to five years in federal prison for distributing methamphetamine. After her prison term, Jagneaux will be placed on supervised release for eight years. She received double the term of supervised release than is normally required because she sold dangerous drugs within 1,000 feet of a public high school.
According to court records, Jagneaux, was arrested at an auto shop located across the street from Pocatello High School. In February 2022, detectives with the BAGES Task Force purchased a half a pound of methamphetamine from Jagneaux at the auto shop that she owned in downtown Pocatello. The purchase was followed by further investigation that led to the execution of a search warrant at the auto shop in September 2022. During the search, law enforcement located methamphetamine and approximately 25 firearms, four of which had been reported stolen.
In a third case, on February 6, 2024, Chief Judge Nye sentenced Santos to five and half years in federal prison to be followed by a term of supervised release for three years for unlawful possession of a firearm. Santos received an enhanced sentence for prohibited possession of a firearm in connection with distribution amounts of methamphetamine.
According to court records, Santos was the passenger in a vehicle that was stopped for expired registration. Santos was asked to step out of the car and subsequently fled on foot. An officer with the Idaho Falls Police Department chased Santos and eventually apprehended him and located a firearm that Santos threw while he was running away. Officers also located a bindle containing four ounces of methamphetamine near the discarded firearm. Santos was prohibited from possessing firearms due to a prior felony conviction. Santos has also previously been documented by the Idaho Falls Police Department as an active gang member.
“These cases reflect the strong partnership between our office and our local law enforcement partners,” said U.S. Attorney Hurwit. “This series of cases not only makes Eastern Idaho safer, but it also shows our commitment to bringing to justice anyone else tempted to sell poisonous drugs or illegally possess firearms in Idaho.”
U.S. Attorney Hurwit thanked the Pocatello Police Department, the Idaho State Police, the Drug Enforcement Administration, the Bannock County Sheriff’s Office, and the Chubbuck Police Department which participated as part of the BAGES Task Force, and the Idaho Falls Police Department for their investigations in these cases. Assistant U.S. Attorney Blythe McLane, who was the Eastern Idaho Partnership Special Assistant U.S. Attorney at the time of charging, prosecuted these three cases.
The BADGES Task Force is a collaboration of federal, state, and local law enforcement agencies that focuses primarily on drug trafficking crimes in Bannock County and throughout the region.
The EIP is a coalition of local city and county officials in eastern Idaho as well as the Idaho Department of Correction. The EIP SAUSA program allows law enforcement to utilize the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
###
District Man Found Guilty by Jury in Scheme to Steal Residential Real Estate Using Fraudulent DeedsRead the Press Release
WASHINGTON - Jeffrey M. Young-Bey, 67, of Washington, D.C was found guilty today on twelve federal charges stemming from a scheme in which he used a fake notary stamp, forged signatures, and fraudulent property deeds to steal residential real estate property. The scheme generated more than $850,000 in fraudulent loans obtained through mortgages taken out against the value of the stolen real estate.
The jury verdict, in U.S. District Court for the District of Columbia, was announced by U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office’s Criminal and Cyber Division.
Young-Bey was found guilty before the Honorable Colleen Kollar-Kotelly on one count of conspiracy to commit mail fraud and bank fraud, two counts of bank fraud, two counts of mail fraud, two counts of money laundering, and five counts of aggravated identity theft. A sentencing date is pending. Young-Bey’s conspiracy and fraud convictions carry a maximum sentence of 20 years in prison. The money laundering counts carry a maximum sentence of 10 years. The aggravated identity theft charges call for a mandatory sentence of two years in prison.
According to the government’s evidence, beginning in November 2019, Young-Bey conspired to steal a residential townhome located in LeDroit Park in order to obtain mortgage financing against the stolen property. Specifically, Young-Bey identified a target property owned free and clear by an elderly homeowner located in the District. Young-Bey then prepared a fraudulent property deed, including forged signatures of the true owners and used a fake notary stamp to make the deed appear legitimate. Young-Bey filed the deed with the District of Columbia Recorder of Deeds, transferring the title from the true owners to a corporate entity. Young-Bey passed a check to the D.C. Recorder of Deeds to pay for the transfer taxes but put a stop payment order on the check before the D.C. government could cash the check. Young-Bey caused the fake deed to be recorded with the D.C. Recorder of Deeds and then falsely told a mortgage services business that another individual had inherited the property and wanted to take a large loan against the value of the home. Young-Bey created a fake rental lease on Rocketlawyer.com and sent the lease to the mortgage company to convince them that his associate owned the home and rented the property for profit. The mortgage company was deceived into loaning Young-Bey’s associate approximately $360,000 against the value of the home they did not own, which was split evenly between the two. Young-Bey used his half of the proceeds to buy a BMW 3-Series valued at approximately $23,000.
After succeeding on the first scam, Young-Bey executed a second fraudulent scheme on a Shephard Park property in the District, forging the names of the two owners, using the fake notary stamp, and recording the deed at the D.C. Recorder of Deeds Office. Young-Bey again put a stop payment order on the transfer tax check before it could be cashed. Young-Bey used the recorded deed to obtain a construction loan in excess of $500,000 against the value of the house. Young-Bey took a portion of the loan and purchased a BMW 7-Series worth approximately $120,000. He promptly sold the home to a legitimate real estate company for an additional $42,000 in profit. The fraud was discovered when the real estate company began performing renovations on the home and the rightful owners were alerted to the construction and demolition by their neighbors.
This case was investigated by the FBI’s Washington Field Office with assistance from the Metropolitan Police Department. It was prosecuted by Assistant U.S. Attorneys Christopher R. Howland and Kevin L. Rosenberg of the Fraud, Public Corruption, and Civil Rights Section with the assistance of Paralegal Specialist Gina Torres. Valuable assistance was provided by Assistant U.S. Attorney Joshua S. Rothstein, former Assistant U.S. Attorney Virginia Cheatham, former Special Assistant U.S. Attorney Viviana Vasiu, and Paralegal Specialist Lisa Abbe who investigated the case. The prosecution team was also assisted by Tonya Jones from the Victim Witness Assistance Unit and Assistant U.S. Attorney Daniel Lenerz from the Appellate Section.
Darknet Fentanyl Dealer Sentenced to 24 YearsRead the Press Release
A darknet fentanyl dealer was sentenced Friday to 293 months in federal prison for multiple drug crimes and possession of child pornography, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.Sean Shaughnessy, 55, was indicted in April 2019 and was convicted at trial in June 2023 of conspiracy to possess with intent to distribute a controlled substance, conspiracy to possess with intent to distribute a controlled substance analogue, distribution of controlled substances, and possession of child pornography. He was sentenced before U.S. District Judge Sam A. Lindsay.
According to evidence presented at trial, Mr. Shaughnessy sold fentanyl, carfentanil (a frequently abused elephant tranquilizer), pentedrone, and fentanyl and pentedrone analogues over the dark web, an unindexed portion of the internet accessible only via specialized software that allows users to conduct transactions with relative anonymity. His buyers purchased the drugs on dark web marketplaces using cryptocurrencies like bitcoin, and Mr. Shaughnessy shipped the drugs to their addresses in the Dallas area and all over the world.
Multiple former customers testified at Mr. Shaughnessy’s trial, noting the drugs Shaughnessy sold them, including fentanyl and its analogues, arrived to their DFW area homes very quickly and were of high potency.
Just days after purchasing fentanyl analogues from Mr. Shaughnessy, one of his customers, a young man in his 20s, died of an overdose involving that substance.
A Homeland Security Investigations Special Agent testified about the undercover operation that identified Mr. Shaughnessy, explaining that Mr. Shaughnessy directed tens of thousands of dollars of his illicit drug proceeds to be sent to Mr. Shaughnessy in the Dallas area.
Another agent testified that during an interview with law enforcement, Mr. Shaughnessy claimed that the agents would have to “check his taxes” to determine what Mr. Shaughnessy did for a living. Agents contacted the Internal Revenue Service, which indicated Mr. Shaughnessy had filed no taxes for the relevant time periods.
In a video of his July 2016 arrest played for the jury, Mr. Shaughnessy, with white powder visible around his nose, removed and dropped a baggie of drugs from his pocket while officers were placing handcuffs on him, and he then attempted to kick it out of officers’ view. When officers noticed the baggie, the defendant insisted, “that ain’t mine,” though it was plainly visible on the officers’ body-camera footage.
Homeland Security Investigations’ Dallas and New York Field Offices conducted the investigation in partnership with the U.S. Postal Inspection Service, U.S. Customs & Border Protection, the Irving Police Department, and the Sacramento District Attorney’s Office. Assistant U.S. Attorneys Joe Magliolo and Gary Tromblay prosecuted the case.
Covetrus Pleads Guilty to Criminal Misbranding of Veterinary Prescription DrugsRead the Press Release
ABINGDON, Va. – Covetrus North America LLC, a company based in Dublin, Ohio, which sells veterinary products to customers across the United States, pled guilty today to causing the introduction and delivery of misbranded veterinary prescription drugs into interstate commerce. As part of the agreement, Covetrus will pay over $23 million in criminal fines and forfeitures.
“The United States Attorney’s Office for the Western District of Virginia takes the distribution of misbranded prescription drugs seriously,” United States Attorney Christopher R. Kavanaugh said today. “Covetrus shipped over $20 million in prescription drugs to unauthorized end-users in violation of federal laws that are designed to ensure prescription drugs are kept within a controlled chain of distribution and to prevent diversion and inappropriate use. Today’s result demonstrates my Office’s commitment to holding those companies and corporations accountable when they seek to profit by breaking the law.”
“The FDA recognizes the importance of controlling the prescription drug supply for animals. The careless or uncontrolled distribution of prescription animal drugs poses a danger not only to the medicated animals but to the U.S. public health by increasing the risk that humans will become resistant to antibiotics that we unknowingly consume through our food supply.” said Special Agent in Charge George Scavdis, FDA Office of Criminal Investigations - Metro Washington Field Office. “We will continue to pursue and bring to justice those who distribute prescription animal drugs unlawfully.”
According to court documents, from March 2019 to December 2021, Covetrus shipped over $20 million in prescription drugs from their non-pharmacy locations throughout the United States to end-users that were not authorized to receive prescription drugs. Shipments from non-pharmacy locations to non-authorized end-users or locations are deemed “misbranded.”
Covetrus will forfeit $21,534,091, pay $1,000,000 to the Virginia Department of Health Professions, as well as a fine of $1,000,000. In addition, Covetrus is obligated to keep in place appropriate compliance measures to prevent future violations.
Sentencing is scheduled for May 8, 2024 at 10:30 a.m.at the United States Federal Courthouse in Abingdon.
The U.S. Food and Drug Administration – Office of Criminal Investigations and the Virginia State Police investigated the case, with the assistance of the Virginia Department of Health Professions.
Assistant U.S. Attorney Randy Ramseyer is prosecuting the case.
Costa Rica Man Arrested for Sweepstakes Fraud and Impersonation of Federal Government OfficialsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the unsealing of a Complaint charging FEDERICO HERNANDEZ GAMBOA with conspiring to commit wire fraud, conspiring to commit bank fraud, bank fraud, and aggravated identity theft in connection with a scheme to defraud elderly victims by convincing them that they had won millions of dollars in a sweepstakes lottery that could only be collected after they paid millions of dollars’ worth of supposed taxes and fees. GAMBOA was arrested on February 10, 2024, at George Bush Intercontinental Airport in Houston, Texas. He will be presented today before U.S. Magistrate Judge Dena Hanovice Palermo in the Southern District of Texas.
U.S. Attorney Damian Williams said: “As alleged, Federico Hernandez Gamboa defrauded numerous elderly victims who were lured into thinking that they had won life-changing prizes in a sweepstakes lottery of millions of dollars. By allegedly impersonating high-ranking federal government officials, Gamboa and others convinced victims that they had to pay supposed taxes and fees in order to claim their sweepstakes winnings. Scammers who target vulnerable elderly men and women to line their own pockets, take note – you will be held accountable.”
As alleged in the Complaint filed in Manhattan federal court:[1]
From at least August 2020 through at least May 2023, GAMBOA and others contacted elderly victims while claiming to be high-ranking federal government officials, including the Chief of the Criminal Division of the U.S. Attorney’s Office for the Southern District of New York, the Deputy Director of the Financial Crimes Enforcement Network, and others, to convince victims that they had won large cash prizes as part of a sweepstakes lottery. GAMBOA and others induced the victims to wire millions of dollars in supposed taxes and fees associated with their sweepstakes winnings to bank accounts controlled by members of the fraud scheme. GAMBOA and others then wired most of the money to bank accounts in Costa Rica.
Members of the fraud scheme also induced victims to send their personal identifying information, which GAMBOA and others used to create fake identification cards. They also forged victims’ names on loan agreements that they submitted to financial institutions in order to persuade those institutions that the fraudulently obtained funds belonged to them.
The victims collectively sent approximately $4.3 million in fraud proceeds to bank accounts controlled by members of the fraud scheme, approximately $664,000 of which was sent directly to bank accounts controlled by GAMBOA.
* * *
GAMBOA, 51, of San Jose, Costa Rica, is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison; one count of bank fraud, which carries a maximum sentence of 30 years in prison; and one count of aggravated identity theft, which carries a mandatory prison term of two years that must run consecutively to any other prison term.
The maximum and mandatory potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the exceptional investigative work of the Special Agents and Analysts of the U.S. Attorney’s Office for the Southern District of New York and thanked the U.S. Customs and Border Protection for their assistance with the investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Amanda C. Weingarten is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described herein should be treated as an allegation.
Columbus man sentenced to more than 14 years in prison for attempting to support terrorist plot to murder former PresidentRead the Press Release
COLUMBUS, Ohio – An Iraqi citizen living in Columbus was sentenced in federal court here today to 178 months in prison for attempting to provide material support to a terrorist organization as part of a plot to murder former United States President George W. Bush.
Shihab Ahmed Shihab Shihab, 53, believed the former President was responsible for killing many Iraqis and breaking apart the entire country of Iraq during Operation Iraqi Freedom. The defendant’s own life changed during and after the war and he proudly assisted in this plot.
Shihab originally entered the United States in September 2020 and primarily resided in Columbus from December 2020 until his arrest in May 2022. Throughout much of that time, Shihab attempted to provide material support to terrorists in furtherance of a plot to assassinate former President George W. Bush.
Shihab hoped to smuggle at least four Iraqis associated with ISIS into the United States with the goal of completing the assassination. In fact, in the fall of 2021, Shihab believed he successfully smuggled an ISIS member into the United States for a fee of $40,000. Shihab accepted tens of thousands of dollars for the purported smuggling. In reality, the individual was fictitious, and the interaction was coordinated under the direction of the FBI.
In furtherance of the assassination plot, Shihab traveled to Dallas in February 2022 to conduct surveillance of locations associated with the former President. For example, he recorded videos of the front access gate and surrounding area leading into the neighborhood of the former President’s home.
In March 2022, Shihab met with others in a hotel room in Columbus to look at sample firearms and law enforcement uniforms.
Shihab required the use of burner phones, encrypted communication applications and code names as plans evolved.
Shihab was arrested by FBI Joint Terrorism Task Force agents in May 2022. He pleaded guilty in March 2023 to attempting to provide material support to terrorists. Shihab was also sentenced today to a lifetime of supervised release following his prison sentence.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Matthew G. Olsen, Assistant Attorney General, Department of Justice, National Security Division; Cheryl Mimura, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Yvonne Dicristoforo, Special Agent in Charge, United States Secret Service, announced the sentence imposed today by U.S. District Judge Michael H. Watson. Deputy Criminal Chief Jessica W. Knight and Trial Attorney Frank Russo from the Department of Justice’s National Security Division are representing the United States in this case.
# # #
Colombian Woman Sentenced to 66 Months in Federal Prison for Her Involvement in A Human Smuggling Conspiracy Related to the Gulf CartelRead the Press Release
TALLAHASSEE, FLORIDA – Lina Alejandra Martinez-Munoz, 28, a Colombian National, was sentenced to 66 months in federal prison for conspiracy to bring an alien to the United States. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“International cartels and human smugglers employed by them pose a serious threat to our nation,” said U.S. Attorney Coody. “These smugglers profit from the exploitation of others, often exposing them to violence, injury, and death. With our law enforcement partners, we remain committed to identifying and aggressively prosecuting those who violate the sovereignty and security of our nation. This sentence addresses the defendant’s conduct and illustrates the resulting punishment.”
According to court documents, between December 2020 and June 2023, Martinez-Munoz was part of a group connected to the Cartel Del Golfo (“CDG”), also known as the Gulf Cartel, based in Matamoros, Mexico that smuggled more than one hundred non-citizens into the United States illegally across the United States’ border with Mexico for the purpose of private financial gain.
This investigation resulted from a Florida Highway Patrol traffic stop of Martinez-Munoz’s co-defendant on Interstate 10 in Jefferson County, Florida. Troopers located bundles of U.S. currency, two firearms, numerous foreign passports, identification cards, and a notebook containing payments that listed smuggling fees for females, males, and children from different countries, including Cuba, Honduras, Nicaragua, and Colombia.
“Smugglers are opportunistic, greedy, and have sophisticated communications networks to illegally import people into the U.S. as if they were a commodity,” said Homeland Security Investigations (HSI) Tallahassee Assistant Special Agent in Charge Nicholas Ingegno. “This smuggler was not able to thwart law enforcement detection, and thanks to our partnerships with the Florida Department of Law Enforcement and Florida Highway Patrol, she will now face the consequences of her actions.”
The case was investigated by the Florida Highway Patrol, the Florida Department of Law Enforcement, and Homeland Security Investigations. Assistant United States Attorney Corey J. Smith prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Colchester Resident Sentenced for Child Exploitation OffensesRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that on February 9, 2024, George Casey, 33, of Colchester, Vermont, was sentenced in United States District Court in Burlington, Vermont, to serve 262 months in prison after pleading guilty to one count of production of child pornography (also known as child sexual abuse material, or CSAM), and one count of possession of CSAM. Chief U.S. District Judge Geoffrey W. Crawford also ordered Casey to serve a 15-year term of supervised release.
According to court records and proceedings, in the summer of 2020, law enforcement received a report that Casey was sexually assaulting minor children who lived in the same neighborhood as Casey. The investigation culminated in execution of a search warrant at Casey’s residence in March 2021, during which multiple computers and other digital media were seized and searched. While searching Casey’s devices, law enforcement found five videos that showed Casey sexually assaulting two little girls, then ages 5 and 7, whom Casey knew. After discovering these videos, Casey was immediately arrested. In addition to the images and videos Casey produced, law enforcement discovered a large collection of approximately 1,419 images depicting CSAM on Casey’s digital media.
United States Attorney Nikolas P. Kerest commended the efforts of Homeland Security Investigations, the Chittenden Unit for Special Investigations, and the Vermont Internet Crimes Against Children Task Force in the investigation of Casey.
Barbara A. Masterson, Assistant U.S. Attorney for the District of Vermont, represented the government. Mark Oettinger, Esq. represented Casey.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Clovis Methamphetamine Distributor Pleads GuiltyRead the Press Release
FRESNO, Calif. — Ivan Sigmond, 50, of Clovis, pleaded guilty today to possessing with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 28, 2020, law enforcement officers obtained and executed a search warrant at Sigmond’s residence, where they found nearly 30 pounds of pure methamphetamine, along with two handguns and an assault firearm.
This case is the product of an investigation by the Drug Enforcement Administration and the Clovis Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Sigmond is scheduled to be sentenced on May 20, 2024. Sigmond faces a minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison and a $10 million 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.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
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, 32, of Montreal, pleaded guilty to money laundering conspiracy for her role in a multimillion-dollar scheme to send components used in unmanned 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.
“The defendant in this case flouted our sanctions and export control laws by scheming to send sensitive U.S.-sourced missile and other weapons components to Russia that were later found in Russian weapons systems on the battlefield in Ukraine,” said Deputy Attorney General Lisa O. Monaco. “She now faces time in a United States prison for her actions. As we approach the two-year anniversary of Russia’s unlawful invasion of Ukraine, through our Disruptive Technology Strike Force and our Task Force KleptoCapture, the Justice Department will continue using all available legal tools and authorities to hold accountable those who supply the Russian war machine with critical U.S. technology.”
“Ms. Puzyreva admitted to taking part in an elaborate scheme to smuggle millions of dollars’ worth of restricted U.S. components for use in Russian weapons deployed against Ukraine,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department is committed to denying Moscow the resources it needs to prosecute its unjust invasion of Ukraine, and we will hold accountable covert enablers and profiteers who violate U.S. law to further Russian aggression.”
“The defendant was a necessary player in a scheme to evade export controls and sanctions and ship UAV and missile components to Russia that were later found on the battlefield in Ukraine,” stated United States Attorney Peace. “Without the defendant laundering the proceeds of the scheme, the export scheme would not have worked. 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. This Office will faithfully prosecute every member of a conspiracy to the fullest extent of the law.”
“The FBI and our partners will hold accountable those who violate our laws and enable adversarial nations to obtain U.S. technology to be used in foreign weapon systems,” said Deputy Director Paul Abbate. “In this case, the defendant laundered funds in a scheme which allowed Russia to obtain components used in guided missiles and other systems against Ukraine, and she is now facing the consequences of her actions.”
“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 Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod of the Department of Commerce. “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.”
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 and her 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 Jan. 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 Jan. 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.
When sentenced, Puzyreva faces a maximum penalty of up to 20 years in prison. A U.S. district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Artie McConnell and Ellen H. Sise for the Eastern District of New York and Trial Attorney Christopher M. Cook of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance from Litigation Analysts Mary Clare McMahon and Joseph Levin. Assistant U.S. Attorney Laura Mantell of the Eastern District of New York’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.
Canadian National Arrested and Extradited to the United States to Face Charges for Production of Child Sexual Abuse Material and Enticement of A MinorRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the arrest and extradition of Paul Creighton (67, Canada). Creighton is charged with enticement of a minor and production of child sexual abuse material. If convicted on all counts, Creighton faces a minimum mandatory sentence of 15 years, up to life, in federal prison.
Creighton, a citizen and resident of Canada, was arrested by Canadian authorities at the request of the United States on November 12, 2020. On February 8, 2024, Creighton was extradited from Canada to the United States. He appeared in Tampa before Untied States Magistrate Judge Sean P. Flynn on February 9, 2024, and was ordered detained pending trial.
According to the indictment, between 2012 and 2017, Creighton communicated via the internet with children throughout the United States. During this time, Creighton induced the children to send sexually explicit photos and videos of themselves. Creighton also sent pictures of himself, purchased sex toys for the children, and later flew to Orlando to meet with one of his victims.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This investigation was led by the Federal Bureau of Investigation, Tampa Field Office. Substantial assistance was provided by the Department of Justice’s Office of International Affairs, the United States Marshals Service, and the Niagara Regional Police Service. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Arizona man sentenced for role in international drug trafficking ringRead the Press Release
ANCHORAGE, Alaska – An Arizona man was sentenced to 10 years in prison for his role in an international drug trafficking ring targeting Alaska.
According to court documents, Joel Rascone, 30, of Yuma, Arizona, was a member of Miguel Guevara’s drug trafficking ring that smuggled over a dozen kilos of meth, heroin and cocaine from Mexico into Alaska for six years. As part of his role in the enterprise, Rascone sold heroin for the organization in Alaska and sent wire transfers to Guevara’s coconspirators and suppliers in Mexico.
Rascone had four felony convictions in the state of Arizona prior to this case, including theft, possession of a dangerous drug, and two convictions for attempted unlawful use of means of transportation. In the 2017 theft case, Rascone and two other men robbed a gas station in Yuma, Arizona, at knifepoint, all wearing masks over their faces.
Three other defendants in this case have already been sentenced or pleaded guilty:
- Miguel Guevara, a.k.a. “Javi,” 40, has entered a plea of guilty and it is awaiting acceptance from the Court.
- Serena Joseph, 41, pleaded guilty to drug conspiracy and money laundering and was sentenced to 63 months imprisonment.
- Washahiotha Zaragoza, 46, pleaded guilty to drug conspiracy and was sentenced to 18 months imprisonment.
Four additional co-defendants are believed to be at large in Mexico."These prosecutions mark another milestone in our fight against criminals who come to Alaska from Outside to traffic dangerous drugs that harm our communities,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Dismantling drug trafficking organizations is a priority for my office, and we will continue to partner with law enforcement to keep drugs out of our state and keep Alaskans safe.”
The FBI Anchorage Field Office, U.S. Coast Guard Investigative Service (CGIS) and the Drug Enforcement Administration Seattle Field Office led the investigation, with support from the Anchorage Police Department, Homeland Security Investigations Sells, Arizona Office, U.S. Customs and Border Patrol, Alaska State Troopers, Ted Stevens Anchorage International Airport Police and Alaska National Guard.
Assistant U.S. Attorneys Ainsley McNerney, Christopher Schroeder and William Taylor are prosecuting the case, with assistance from former Assistant U.S. Attorney Allison O’Leary. The U.S. Attorney’s Office, District of Arizona, and law enforcement agencies in the state of Arizona provided additional support on the case.
This investigation and prosecution are part of the Organized Crime Drug Enforcement Task Force (“OCDETF”), which 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.
###
10 February 2024
Dock Edward Hoilman Sentenced to 151 Months for Distribution and Possession of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On February 9, 2024, Dock Edward Hoilman, 64, currently of Kingston, Tennessee, was sentenced to 151 months by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Hoilman agreed to plead guilty to an indictment charging him with, one count of distribution of child pornography in violation of 18 U.S.C. § 2252A(a)(2); and one count of possession of child pornography in violation of 18 U.S.C. 2252A(a)(5)(B) and 2252A(b)(2). Following his incarceration, Holliman will be on ten years’ supervised release, and he will be required to register with state sex offender registries and comply with special sex offender conditions.
According to the filed plea agreement, on May 27, 2022, Hoilman, a former Y-12 IT Systems Administrator with top secret clearance, distributed child pornography videos through the internet to unknown persons. On August 24, 2022, a search warrant was executed on his home. Hoilman was found to be in possession of 14 images and 25 videos of child pornography.
U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee; Inspector General , Teri L. Donaldson, United States Department of Energy, Office of Inspector General (DOE-OIG); and Special Agent in Charge Rana Saoud, of the Department of Homeland Security, Homeland Security Investigations (HSI) made the announcement.
The criminal indictment was the result of an investigation by the DOE-OIG, HSI and 9th District Attorney General’s Office. This investigation was led by DOE-OIG Special Agent Paul B. Gilbride and HSI Task Force Officer Cortney Duggar.
Assistant United States Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood (PSC), 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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab “resources.”
###
9 February 2024
Vero Beach resident pleads guilty to fentanyl distribution charges in federal courtRead the Press Release
MIAMI – On Feb. 7, a Vero Beach man pleaded guilty to two counts of distributing fentanyl.
In April 2023, Sudiata Neket Zanja Stinson, 47, of Vero Beach, Florida, sold approximately 20 grams of fentanyl to a purchaser in two separate occasions.
The sentencing hearing has not been set yet. Stinson faces up to 40 years in federal prison.
Stinson’s conviction is the result of a Drug Enforcement Administration (DEA) and Indian River County Sheriff’s Office (IRCSO) fentanyl distribution operation.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of DEA, Miami Field Division, and Sheriff Eric Flowers of IRCSO made the announcement.
DEA Miami Field Division, Port St. Lucie Resident Office and IRCSO investigated 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 23-cr-14040.
###
Vancouver Real Estate Developer Sentenced to Federal Prison for Fraudulently Obtaining Covid-Relief Funds, Laundering ProceedsRead the Press Release
PORTLAND, Ore.—A real estate developer and part-time resident of Vancouver, Washington, was sentenced to federal prison today for fraudulently obtaining Covid-relief program funds and laundering a portion of the proceeds while on federal supervised release for a previous fraud conviction.
Michael James DeFrees, 62, was sentenced to 21 months in federal prison and five years’ supervised release. He was also ordered to forfeit $1.2 million and pay $1.3 million in restitution to the U.S. Small Business Administration (SBA).
“Michael DeFrees’s crimes demonstrated his indifference to both the many businesses suffering the economic effects of the COVID-19 pandemic and American taxpayers who funded the relief programs created to alleviate these impacts. Prosecuting COVID-19 fraud remains a top priority for the Department of Justice and our partners,” said Ethan Knight, Chief of the Economic Crimes Unit for the U.S. Attorney’s Office.
“Fraudulently using pandemic funds for personal gain is deplorable” said SBA Office of Inspector General (SBA-OIG) Western Region Special Agent in Charge Weston King. “This sentence demonstrates that those who defraud the nation’s vital economic programs will be held accountable. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“Crime doesn’t pay, as Mr. DeFrees is again finding today,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Financial crime like Covid-relief fraud hurts all of us and undermines programs meant to help those in need. Today’s sentencing is a reminder that IRS:CI is committed to fighting fraud for the well-being of all our neighbors and communities.”
According to court documents, between April 2, 2020, and April 4, 2022, DeFrees used two different business entities to obtain under false pretenses Economic Injury Disaster Loans (EIDLs) and Paycheck Protection Program (PPP) loans administered by the SBA. The EIDL and PPP programs, initially authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enabled SBA to issue low-interest loans to small businesses adversely impacted by the pandemic and associated shutdowns.
To perpetrate his scheme, DeFrees submitted multiple loan applications to the SBA and two banks in Washington State. In these applications, DeFrees indicated that he was the sole owner of two business entities—Gateway National Corporation, a construction company incorporated in Washington State, and Yacht Harbor, LLC, a real estate development company incorporated in Oregon—and that he, as the sole owner, had never been convicted of any disqualifying criminal offense or recently placed on parole or probation.
In reality, at the time he submitted the applications, DeFrees was on probation following a 2017 felony conviction in the Western District of Washington for falsifying records in a bankruptcy proceeding. After receiving the loan payouts, DeFrees laundered a portion of the proceeds through a third business entity and spent the funds on personal expenses.
On May 17, 2022, a federal grand jury in Portland returned a four-count indictment charging DeFrees with two counts of wire fraud and one count each of bank fraud and money laundering. On October 26, 2023, DeFrees pleaded guilty to all four charges.
This case was investigated by the SBA Office of Inspector General, IRS-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration (TIGTA), and the FBI. Assistant U.S. Attorney Ryan W. Bounds prosecuted the case.
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: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Vale Man Sentenced to 45 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange has sentenced a Vale, South Dakota, man convicted of Sexual Exploitation of a Minor, Attempted Enticement of a Minor Using the Internet, and Receipt of Child Pornography. The sentencing took place on February 5, 2024.
Timothy Scott White, 43, was sentenced to 30 years in federal prison for the Sexual Exploitation charge, 45 years in federal prison for the Attempted Enticement of a Minor charge, and 20 years in federal prison on the Receipt of Child Pornography charge, all to run concurrent. Additionally, White was sentenced to 10 years of supervised released, and order to pay a $300 special assessment to the Federal Crime Victims Fund and $28,000 in restitution. White will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
White was indicted for Production of Child Pornography by a Parent by a federal grand jury in January of 2023. He pleaded guilty on November 3, 2023.
The convictions stem from White producing child pornography of his minor daughter between January of 2020 and December of 2021. Evidence showed White also distributed hundreds of images of child pornography of other victims, as well as received thousands of images and videos.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the South Dakota Division of Criminal Investigation’s Internet Crimes Against Children Task Force, the FBI, and the Butte County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
White was immediately remanded to the custody of the U.S. Marshals Service.
U.S. Attorney’s Office Recovers More Than $90 Million in Fiscal Year 2023 for Crime Victims and the United States GovernmentRead the Press Release
BOSTON – Acting United States Attorney Joshua S. Levy announced today that the U.S. Attorney’s Office for the District of Massachusetts recovered more that $90 million in Fiscal Year 2023, including $42,233,999 in criminal actions and $25,730,882 in civil actions. The Office recovered another $22,451,124 in criminal and civil forfeiture proceedings in Fiscal Year 2023.
Through work that involved other U.S. Attorney’s Offices, components of the Department of Justice and whistleblowers, the District of Massachusetts collected an additional $918,412,292. Of this amount, the Office collected $29,621 in criminal actions and $918,382,671 in civil actions.
“Our Office is committed to restoring funds to victims of crime and depriving criminals of their ill-gotten gains. Our civil and criminal prosecutors work in close coordination from the outset of an investigation to identify, trace and seize assets to accomplish those important goals. In addition, we have a long history of success in recovering taxpayer dollars in False Claims Act cases. These cases protect the public and root out fraud against the United States in health care, government contracting, grants and other government expenditures. We will continue to make these important collection efforts a very high priority,” said Acting U.S. Attorney Levy.
In Fiscal Year 2023, the Asset Recovery Unit was responsible for the collection of over $41 million in restitution for crime victims. The Unit also recovered nearly $1 million in criminal fines and special assessments, as well as forfeiture of over $22 million in criminal proceeds or other property involved in crimes.
In addition to monetary recoveries, the Asset Recovery Unit: led the effort to return a stolen manuscript from 1527 signed by Hernando Cortez to the Mexican National Archives; returned stolen marksmanship medals to the Springfield Armory; and filed five civil complaints to forfeit cryptocurrency traceable to fraud schemes involving Massachusetts victims. The Asset Recovery Unit locates, seizes and forfeits proceeds of crime, including health care fraud, securities fraud, mail and wire fraud and drug trafficking, as well as money and property involved in money laundering. The Unit pursues forfeiture of ill-gotten gains both domestically and abroad and works closely with units across the Office and its law enforcement partners to ensure that crime doesn’t pay, and that assets are returned to victims.
The Office’s Affirmative Civil Enforcement Unit recovers government money lost to fraud or other offenses. In Fiscal Year 2023, the Unit entered into settlements with defendants totaling approximately $30 million. Among these recoveries, in January 2023, Johnson & Johnson, DePuy Synthes, Inc. and DePuy Synthes Sales, Inc. agreed to pay $9.75 million to resolve Anti-Kickback Statute violations; in June 2023, Injured Workers Pharmacy agreed to pay $10 million to resolve allegations of improper drug dispensing and submitting false claims; and in May 2023 Massachusetts Eye and Ear paid over $5.7 million to resolve false claims allegations. Also in 2023, the Affirmative Civil Enforcement Unit filed suit against Bournewood Health Systems and First Psychiatric Planners for allegedly paying kickbacks to induce patients to choose Bournewood and FPP over other treatment facilities.
The Office’s Civil Rights Unit in the Civil Division also recovered $425,000 for victims of sexual harassment in housing.
The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney Charges New Rochelle Man with Sexual Exploitation of A MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the unsealing of a Complaint charging CHARUDET SMITH, a/k/a “Charles Smith,” with sexual exploitation of a minor. SMITH was arrested yesterday and presented before U.S. Magistrate Judge Victoria Resnik this afternoon in White Plains federal court.
U.S. Attorney Damian Williams said: “Charudet Smith allegedly constructed an elaborate web of lies and fabricated multiple identities in order to gain the trust of an unsuspecting minor. Today’s arrest underscores the urgent need to protect children from the dangers posed by predators who use social media to prey on children both online and in person.”
As alleged in the Complaint:[1]
From at least on or about December 21, 2019, up to and including at least on or about February 13, 2020, SMITH impersonated various individuals and created and used a series of Instagram accounts, emails, and phone numbers in order to deceive a 17-year-old minor (“Victim-1”) into creating and sending sexually explicit videos and images to SMITH and agreeing to meet SMITH to engage in sexual activity in Seattle, Washington.
SMITH posed as an established freelance photographer for a well-known international camera company (“Company-1”) and told Victim-1, an aspiring teenage photographer, that he had numerous contacts within the media industry and could act as Victim-1’s mentor. SMITH then posed as multiple employees of Company-1 who purported to offer Victim-1 a position in a sought-after youth professional development program. In fact, SMITH was never an employee of Company-1 and had never been paid by Company-1 for any services or any employment.
Anyone who may have encountered CHARUDET SMITH, a/k/a “Charles Smith,” or whose child may have had any communications with SMITH is asked to contact the FBI at 1-800-CALL-FBI (225-5324).
* * *
SMITH, 31, of New Rochelle, New York, is charged with one count of sexual exploitation of a minor, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the efforts of the Federal Bureau of Investigation, the Connecticut U.S. Attorney’s Office, the U.S. Attorney’s Office for the District of Vermont, the Sherriff’s Office in Washington, Vermont, the Massachusetts State Police, the New Rochelle Police Department, and the Westchester County Police Department in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Marcia S. Cohen is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Trussville Man Pleads Guilty to Multi-Million-Dollar Health Care Fraud ConspiracyRead the Press Release
BIRMINGHAM, Ala. – Another individual has pleaded guilty in a series of related cases involving multi-million-dollar health care fraud conspiracies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles.
John Alan Robson, 40, of Trussville, pleaded guilty yesterday to health care fraud conspiracy.
According to the plea agreement, Robson was a sales representative who marketed to doctors’ offices various health care products and services, including topical prescription creams from specialty pharmacies, durable medical equipment (DME), and electro-diagnostic testing. Robson was paid fees for the prescriptions, DME, and tests he generated from doctors. From at least 2014 through 2018, Robson conspired with others to pay and receive kickbacks to induce medical providers to issue medically unnecessary prescriptions and order medically unnecessary goods and services, which were then billed to Medicare and other health insurers.
Two of the sales reps named in Robson’s indictment as having engaged in the same conspiracy conduct have previously pleaded guilty to related crimes. Brian Bowman, 42, of Gadsden, and James Ewing Ray, 53, of Gadsden, each pleaded guilty to health care fraud conspiracy. As part of their respective plea agreements, Bowman agreed to forfeit more than $7.6 million, Ray agreed to forfeit more than $800,000, and Robson agreed to forfeit more than $1 million. All three will be ordered, at sentencing, to pay restitution to the victims of their crimes.
Dozens of defendants have been convicted in related cases.
Pharmacy cases. Among the medically unnecessary items Bowman, Ray, and Robson marketed were topical creams for specialty pharmacies including Global Compounding Pharmacy and Watson Rx Solutions. Bowman, Ray, and Robson were paid commissions to induce these prescriptions to be issued. According to Robson’s plea agreement, he and other marketers got blank pre-signed prescriptions from doctors and then completed the prescriptions to ensure the prescriptions would be paid for by insurance, regardless of whether the drugs were medically necessary for patients’ needs. Robson and other marketers also marked specific drugs or drug formulations to make sure insurance would pay for them. And they assured patients and providers that the pharmacies would not insist on collecting copays, which might discourage patients from getting the prescriptions filled. Sales reps also got prescriptions for themselves—regardless of whether there was a medical need—and Bowman, Ray, and Robson were paid commissions on those prescriptions.
More than two dozen defendants have been convicted in connection with the fraud at Global Compounding Pharmacy. Jason Akin, 46, of Florence, has pleaded guilty to health care fraud in connection with the fraud at Watson Rx Solutions.
QBR cases. Another service Bowman, Ray, and Robson marketed was electro-diagnostic testing, specifically, nerve conduction testing, provided by a Huntsville-based electro-diagnostic testing company called QBR, or Diagnostic Referral Community. Bowman, Ray, and Robson received per-patient payments from QBR for inducing medical providers to order tests from QBR. Medical providers received payments from QBR too; the payments were disguised as hourly payments for the ordering physician’s time and staff’s time, but in reality they were per-patient kickbacks.
Dr. Eric Beck, 65, of Huntsville, pleaded guilty to health care fraud conspiracy for his role in the fraud at QBR. John Hornbuckle, 54, of Huntsville, pleaded guilty to health care fraud and kickback conspiracy offenses for his role, as QBR’s CEO, in orchestrating the fraud.
Medical practice cases. Defendants associated with multiple medical practices have also been convicted in related cases.
In one case, a jury convicted Dr. Mark Murphy, 66, and his wife Jennifer Murphy, 66, both of Lewisburg, Tennessee, of drug distribution, fraud, and kickback crimes. The Murphys operated North Alabama Pain Services, which closed its Decatur and Madison offices in early 2017. According to court documents and evidence presented at trial, the Murphys took kickbacks from QBR of more than a million dollars. In return, Dr. Murphy ordered electro-diagnostic tests from QBR for his patients, regardless of whether there was a medical need for those tests. Dr. Murphy also pre-signed prescriptions for expensive specialty topical creams, sprays, and patches, which patients then received whether they wanted the products or not.
In another case, David Lyle Shehi, 43, of Rainbow City, pleaded guilty to conspiracy to pay kickbacks and commit health care fraud. Shehi owned Etowah Pain, a pain clinic in Rainbow City, and pleaded guilty to receiving kickbacks in exchange for his practice’s ordering items or services that would be billed to Medicare and other health insurance programs.
Mark Murphy and Jennifer Murphy were each sentenced to twenty years in prison. Hornbuckle was sentenced to eighty months. Bowman, Ray, Robson, Shehi, and Akin are all awaiting sentencing. Other co-conspirators have already been sentenced.
The maximum penalty for conspiracy to commit health care fraud is ten years in prison.
The FBI and HHS-OIG investigated the case, and Assistant U.S. Attorneys J.B. Ward and Don Long are prosecuting it.
See related press here:
https://www.justice.gov/usao-ndal/pr/pain-clinic-owners-sentenced-unlawfully-distributing-opioids-and-multimillion-dollar
https://www.justice.gov/usao-ndal/pr/etowah-pain-clinic-owner-pleads-guilty-multi-million-dollar-kickback-and-health-care
https://www.justice.gov/usao-ndal/pr/multiple-defendants-sentenced-major-compounding-pharmacy-fraud-conspiracy
https://www.justice.gov/usao-ndal/pr/new-hope-man-sentenced-his-role-multi-million-dollar-kickback-and-health-care-fraud
Three Defendants Convicted at Trial in $7.9 Million COVID-19 Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against JACOB CARTER, QUADRI SALAHUDDIN, and ANWAR SALAHUDDIN for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft in connection with a scheme to defraud the U.S. Small Business Administration (“SBA”) that resulted in a loss to the SBA of approximately $7.9 million. The defendants were found guilty of all counts following a two-week trial before U.S. District Judge Nelson S. Román.
U.S. Attorney Damian Williams said: “As the jury’s swift verdict shows, the proof at trial was overwhelming. The defendants schemed to steal from a taxpayer-funded program that was intended to help small businesses that were in desperate need of assistance during the COVID-19 pandemic. Let this be a lesson that my Office will continue to work to bring justice to those who exploit and defraud government programs during a national emergency. We thank the FBI for their partnership in investigating and prosecuting the alleged scheme.”
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:
The SBA is a federal agency of the Executive Branch that administers assistance to American small businesses. This assistance includes making direct loans to applicants through the Economic Injury Disaster Loan (“EIDL”) Program. In response to the COVID-19 pandemic, Congress expanded SBA’s EIDL Program to provide small businesses with low-interest loans of up to $2 million prior to in or about May 2020 and up to $150,000 beginning in or about May 2020 in order to provide vital economic support to help overcome the loss of revenue small businesses were experiencing due to COVID-19. Applicants seeking a loan under the EIDL program were also permitted to request and receive an advance of approximately $1,000 per employee, for an amount up to $10,000, which the SBA generally provided while the loan application was pending.
From March through July 2020, CARTER, QUADRI SALAHUDDIN, and ANWAR SALAHUDDIN used the identities of more than 1,000 other individuals (the “Applicants”) to submit more than 1,000 online applications to the SBA, seeking over $10 million in funds through the SBA’s EIDL Program (the “EIDL Applications”). In connection with the EIDL Applications, CARTER, QUADRI SALAHUDDIN, and ANWAR SALAHUDDIN falsely represented to the SBA that the Applicants were the owners of businesses with 10 or more employees. However, that was a lie – the individuals did not own businesses or employ people. Based on the fraudulent EIDL Applications, the SBA made advance payments of approximately $7.9 million to the Applicants, who then kicked back a portion of the advance payments to CARTER, QUADRI SALAHUDDIN, and ANWAR SALAHUDDIN. After collecting hundreds of thousands of dollars in kickback payments, CARTER, QUADRI SALAHUDDIN, and ANWAR SALAHUDDIN took photographs of their stacks of cash, purchased expensive jewelry, and CARTER leased a Lamborghini.
* * *
CARTER, 38, of Capitol Heights, Maryland, and QUADRI SALAHUDDIN, 28, and ANWAR SALAHUDDIN, 38, both of Mount Vernon, New York, were each convicted of one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory two-year consecutive sentence.
The maximum and mandatory potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey C. Coffman, Courtney L. Heavey, and Jared D. Hoffman are in charge of the prosecution, with the assistance of paralegal specialist Liam Ronan.
Texas Roofing Company Charged with Fraud Related to Asbestos Removal at Federal Prison in WisconsinRead the Press Release
MADISON, WIS. - Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced the filing of a criminal information and deferred prosecution agreement on February 7, 2024, charging Brazos Urethane, Inc. Texas City, Texas, with conspiracy to defraud the U.S. Department of Justice, Federal Bureau of Prisons (BOP).
Brazos contracted in 2014 with the BOP to replace roofs on buildings located at the Oxford Federal Correctional Institution (FCI Oxford) located in Oxford, Wisconsin, at a contract price of nearly $4,000,000. The roofing project involved the abatement of asbestos containing materials that required the use of special removal and disposal procedures to guard against asbestos contamination. As part of the BOP contract, Brazos certified that it would maintain a safe work environment, follow all federal and state laws regarding the removal and disposal of hazardous waste materials, and obtain all necessary permits from the Wisconsin Department of Natural Resources (DNR).
“Brazos dumping hazardous material on a residential property wasn’t just dangerous for the community, it was defrauding the United States government. The public can rest assured that the asbestos has been properly removed and disposed of, and that Brazos is being held accountable for its actions,” said William J. Hannah, Special Agent in Charge of the Department of Justice Office of the Inspector General Midwest Region.
“The United States requires contractors like Brazos to comply with regulations for the proper removal and disposal of materials containing asbestos,” said U.S. Attorney Timothy M. O’Shea of the Western District of Wisconsin. “When contractors fail to comply, they not only defraud the United States, they also endanger their employees and the community. This charge is meant to hold Brazos accountable and deter other contractors from engaging in similar conduct."
Brazos dumped roofing waste materials from the FCI Oxford worksite onto a property he purchased near the prison in early 2015. The roofing waste materials were subsequently found to contain asbestos by Wisconsin DNR regulators on November 4, 2015, and by Environmental Protection Agency regulators on December 16, 2021. Brazos concealed this illegal dumping from the BOP and Wisconsin DNR, then lied about its cleanup efforts once the company was caught.
In 2022, Brazos was ordered by the Wisconsin DNR to properly and completely clean up the roofing waste. The cleanup project cost Brazos $480,000, and took three weeks to accomplish.
As part of the deferred prosecution agreement, Brazos agrees to immediately pay a monetary penalty of $300,000 which represents the amount of money Brazos attempted to save by engaging in the illegal dumping conduct. Brazos also agrees to enter into a three-year corporate compliance program designed to prevent further violations of contract fraud and federal environmental laws. At the end of the three-year program, the charge against Brazos will be dismissed.
The case against Brazos was the result of an investigation conducted by the U.S. Department of Justice, Office of Inspector General. The prosecution of the case was handled by Assistant U.S. Attorney Daniel J. Graber.
Testing Laboratory Co-owner Admits $3.8 Million in Fraudulent BillingRead the Press Release
ST. LOUIS – A former St. Louis County health care company owner on Friday admitted submitting more than $3.8 million in fraudulent claims to Medicare, Medicaid and private health care benefit programs.
Carlos Himpler, 44, now of Baton Rouge, Louisiana, pleaded guilty in U.S. District Court in St. Louis to a felony conspiracy charge.
Himpler, who at the time lived in St. Louis County, described himself as a “business development strategist” and owned or operated a series of health care-related businesses. Himpler’s co-defendant, Dr. Franco Sicuro, also owned businesses including Advanced Geriatric Management LLC (AGM) at 10199 Woodfield Lane in Creve Coeur. In the fall of 2014, Himpler and Dr. Sicuro decided to open an in-house testing lab at AGM. They also decided to open Genotec DX, which they held out as a clinical testing laboratory, and agreed to split profits 50-50. Genotec was in the same building and used the same testing machine as AGM’s lab.
Their goal was to maximize their profits from the lab testing business. Himpler and Dr. Sicuro sought accreditation for both labs under the Clinical Laboratory Improvement Amendments (CLIA), which set forth quality standards for laboratories that test blood, body fluid, and tissue taken from humans for diagnosis, prevention or treatment of disease. The pair did not disclose that both labs would employ the same part-time employee who would perform tests using the same machine, Himpler admitted in his plea. To convince CLIA to grant Genotec a final certificate of compliance in November 2015, Himpler participated in causing Genotec to make misrepresentations to CLIA, including that Genotec’s testing hours “changed” so that they no longer overlapped with AGM, Genotec and AGM kept separate laboratory logs and AGM stopped lab running samples and transferred its employees to Genotec in July of 2015, when Genotec began running urine toxicology tests, the plea says.
They also concealed Sicuro’s co-ownership of Genotec from Medicare, Medicaid and private health care insurers, while referring urine specimens from Sicuro’s own practice, AGM, to Genotec.
Himpler and Sicuro and other health care providers at AGM ordered urine toxicology tests for patients and referred those tests to AGM’s lab and Genotec, which in turn sent the samples to outside “reference” laboratories. Both men knew AGM and Genotec did not have the necessary testing equipment to confirm the amount of given toxin in the urine testing to a high degree of certainty, Himpler’s plea says. They then billed health insurers for the testing, despite knowing that Medicare, Medicaid and many private insurers bar “pass-through billing,” or billing for tests performed by others.
In March of 2015, Himpler and Sicuro incorporated another laboratory company, Midwest Toxicology Group LLC, but never obtained a CLIA certification or any lab equipment. Midwest was a lab in name only and was not authorized to perform tests on human specimens. When health insurers began scrutinizing claims submitted by Genotec and became resistant to paying them, Himpler and Sicuro created Midwest for the purpose of billing health insurers, the plea says. In many instances, each lab submitted a claim for the testing of the same specimen obtained from the same person on the same day of service, which is known as “split-billing.” The pair used Genotec’s CLIA number.
Himpler admitted in his plea agreement that Medicare, Medicaid and private health care insurers paid $1.4 million in pass-through billing and $2.4 million in split billing.
“Today’s announcement of an additional guilty plea in this investigation demonstrates that HHS-OIG will continue to hold individuals who exploit federal health care programs accountable,” said Curt L. Muller, Acting Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General. "Health care providers have a responsibility to submit accurate and honest claims to federal health care programs, to ensure that these resources are available for eligible patients.”
Himpler is scheduled to be sentenced May 15. The conspiracy charge is punishable by up to five years in prison, a fine of up to $250,000, or both prison and a fine.
Dr. Sicuro pleaded guilty in November 2022 and was ordered to pay restitution. He also agreed to forfeit $3.1 million in assets.
The FBI, the U.S. Department of Health and Human Services Office of Inspector General and the IRS investigated the case. Assistant U.S. Attorneys Amy Sestric and Kyle Bateman are prosecuting the case.
Tampa Man Indicted for Gas Station RobberyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Brandale Swails (29, Tampa) with Hobbs Act robbery and use of a firearm during and in relation to a crime of violence. If convicted on both counts, Swails faces a minimum mandatory sentence of seven years in federal prison.
According to court documents, on October 15, 2023, Swails arrived at a Tampa gas station on a bicycle, entered the business, pointed a gun at the clerk, and demanded money. The clerk immediately hid behind the counter, and Swails jumped over the counter. Swails stated he would shoot the victim if he did not open the register and demanded one-hundred-dollar bills. Swails continued to hold the victim at gunpoint while directing the victim into a bathroom. Swails then exited the business with an undisclosed amount of cash and fled on a bicycle. Swails was arrested two weeks later, hiding inside a bedroom closet.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Hillsborough County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
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.
Tallahassee Man Sentenced to 13 Years in Federal Prison for Receiving Methamphetamine Through the United States MailRead the Press Release
TALLAHASSEE, FLORIDA – Chason Michael Miles Johnson, 30, of Tallahassee, Florida, was sentenced to 13 years in federal prison after previously pleading guilty to conspiracy to distribute and possess with intent to distribute methamphetamine; possession with intent to distribute methamphetamine; and possession of ammunition by a convicted felon. The sentence was announced by Jason R. Coody, U.S. Attorney for the Northern District of Florida.
“This investigation demonstrates the effectiveness and collaborative efforts of our local and federal law enforcement partners, to identify and intercept shipments of illegal substances via the United States Mail,” said U.S. Attorney Coody. “Moreover, the sentence should serve as a significant deterrent to those who would use the United States Postal Service to conduct illegal activities.”
Court documents reflect upon Johnson’s release from state prison in March 2022, he began receiving methamphetamine via the United States Postal Service from a source in Arizona. The United States Postal Inspection Service uncovered the plot after flagging one of the packages destined to Johnson, obtaining a search warrant, and discovering that it contained approximately half a pound of methamphetamine. A second package destined for Johnson was likewise intercepted, a search warrant obtained, and it was found to contain approximately a pound of methamphetamine. On August 24, 2022, a federal search warrant was executed at Johnson’s home, and officers found a .22 caliber pistol and ammunition, over an ounce of methamphetamine, and various other drugs.
“Many lives in America have been poisoned by the illicit drugs distributed by criminals such as Johnson,” said Juan A. Vargas, Inspector in Charge, U.S. Postal Inspection Service, Miami Division. “The U.S. Postal Inspection Service will not stop targeting, disrupting, and dismantling every level of these drug trafficking organizations, which are poisoning the American people.”
“Deadly, dangerous, and highly addictive, methamphetamine has caused destruction in many communities,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “This investigation highlights DEA Miami Field Division’s commitment to working with our local, state, and federal partners to track down those who bring this poison into our communities and hold them accountable for their actions.”
Johnson was prohibited from possessing firearms or ammunition, having been recently released from 5-year state prison sentence for aggravated battery with a deadly weapon and trafficking in methamphetamine.
Johnson’s prison sentence will be followed by 10 years of supervised release.
This prosecution resulted from a joint investigation conducted by the United States Postal Inspection Service, the Drug Enforcement Administration, and the Tallahassee Police Department. Assistant United States Attorney James A. McCain prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
St. Francis Man Sentenced for Sexual Abuse of a MinorRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a St. Francis, South Dakota, man convicted of Sexual Abuse of a Minor. The sentencing took place on February 1, 2024.
Meteo Running Enemy, age 19, was sentenced to four years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Running Enemy was indicted by a federal grand jury in July of 2023. He pleaded guilty on November 8, 2023.
The conviction stems from an incident that occurred in May of 2023 in St. Francis, wherein Running Enemy engaged in a sexual act with a minor who had attained the age of 12 years but had not attained the age of 16 years.
This case was investigated by the FBI and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in federal court as opposed to State court.
Running Enemy was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Possession of a Firearm by a FelonRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Convicted Felon. The sentencing took place on January 29, 2024.
Nathan James Thompson, 40, was sentenced to four years and three months in federal prison, followed by three years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Thompson was indicted for Possession of a Firearm by a Prohibited Person (Felon) by a federal grand jury in February of 2023. He pleaded guilty on October 6, 2023.
According to court documents, Thompson was a driving a vehicle in Sioux Falls on December 25, 2022, and was arrested following a traffic violation. Law enforcement found a firearm in Thompson’s pocket. Thompson had previously been convicted of a felony for Possession of a Stolen Motor Vehicle, so was aware he was not allowed to possess firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Sioux Falls Police Department and Homeland Security Investigations. Assistant U.S. Attorney Elizabeth Ebert prosecuted the case.
Thompson was immediately remanded to the custody of the U.S. Marshals Service.
Samson, Alabama Pharmacy Liable for $110,000 Penalty for Recordkeeping Violations of the Controlled Substances ActRead the Press Release
Montgomery, Alabama - Today, Acting United States Attorney Jonathan S. Ross announced that King Drug Co., Inc. (King Drug), a pharmacy previously doing business in Samson, Alabama, along with owner Traci Revels McCoy, is liable to the United States for $110,000 in civil monetary penalties after failing to comply with recordkeeping requirements of the Controlled Substances Act (CSA).
The CSA aims to protect the public’s health and safety from highly addictive or dangerous controlled substances that are diverted into the illicit market, while also ensuring that patients have access to pharmaceutical controlled substances for legitimate medical purposes. To prevent diversion, the CSA regulates individuals and companies that manufacture, distribute, and dispense controlled substances. Entities dispensing controlled substances are required to have a valid Drug Enforcement Administration (DEA) registration number and must comply with various recordkeeping requirements.
According to the consent judgment and other court documents, King Drug was a registered retail pharmacy authorized to purchase and dispense Schedules II-V controlled substances. An inspection found that, between January 16, 2021, and December 14, 2021, King Drug and Traci McCoy failed to keep complete, timely, and accurate inventories and records of the receipt and dispensing of Schedule II controlled substances. These failures resulted in thousands of doses of hydrocodone, oxycodone, morphine, and methadone going unaccounted for. Based on those findings, the United States filed a lawsuit in the United States District Court for the Middle District of Alabama alleging numerous violations under the provisions of the CSA. King Drug has since ceased operation as a retail pharmacy. The court issued the consent judgment on February 2, 2024.
“Pharmacies serve a vital role in preventing the diversion and the resulting abuse of dangerous prescription drugs,” said Acting United States Attorney Ross. “The requirement to keep complete and accurate records is crucial for accountability and transparency. My office will use all available enforcement tools to ensure that controlled substances are properly handled and used for legitimate, medical purposes.”
“Prescription medications, when misused, can pose a grave threat to public health,” said Acting Special Agent in Charge Steven L. Hofer of the Drug Enforcement Administration. “That’s why meticulous recordkeeping by pharmacies is an essential line of defense against the opioid crisis. Every dose, every pill meticulously accounted for protects communities and saves lives.”
The DEA’s Tactical Diversion Squad, Diversion Control Division investigated this case. The matter was handled by Assistant United States Attorney Stephen D. Wadsworth and Investigative Analyst Rita E. Richard of the Affirmative Civil Enforcement Unit of the United States Attorney’s Office for the Middle District of Alabama.
Russian mobster extradited from Ukraine and sentenced in $9+ million fraud scheme involving exotic car leasing business catering to drug traffickers and othersRead the Press Release
ATLANTA - Mani Chulpayev, the leader of a luxury car leasing scheme that operated in the Atlanta and Miami areas from 2009 to 2016, has been sentenced to prison and ordered to pay more than $4.6 million in restitution. Chulpayev was arrested in October 2020 while hiding in Ukraine, using a fake identity, and working as a movie producer. His conviction marks the end of a multi-agency collaboration known as “Operation Riding Dirty,” which targeted a web of drug traffickers utilizing multiple, hard-to-trace cars, the fraudsters who laundered drug money for the traffickers and left banks and investors on the hook for millions of dollars of losses, and the corrupt government officials who facilitated and protected the traffickers.
“Chulpayev ran a sophisticated scheme that inflicted vast losses on banks and the individuals he recruited to assist his fraudulent scheme,” said U.S. Attorney Ryan K. Buchanan. “Chulpayev then used the fruits of his fraud – a fleet of exotic cars – to enable drug traffickers to operate, evade detection, and launder their illicit proceeds. The disruption of his illegal network is the culmination of an unrelenting, coordinated, and comprehensive investigation by our agency partners.”
Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division stated, “Through hard work, this illegal drug distribution and money laundering network has been removed from our streets. This criminal enterprise had no regard for the potential impact of their actions.”
“This sentence punishes the defendant’s extensive criminal conduct and serves as a significant deterrent to others who would think about engaging in these types of illegal activities,” said Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service Atlanta Division. “Postal Inspectors and our law enforcement partners are proud of the prosecutive results of this aggressive and extensive investigation to dismantle this criminal organization.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Chulpayev was born in the Soviet Union but moved to the United States with his family at the age of 12. By age 20, he acted as the lead money handler and scheme organizer for a Russian crime ring operating in Brooklyn and Queens, New York, and engaged in extortion, arson, kidnapping, human trafficking, and various frauds. Following a previous federal conviction and prison term, he moved to Atlanta, where he was soon arrested for operating a chop shop selling stolen cars with altered VINs and fraudulent titles. Following a second federal conviction and prison term, in 2009, he started a car leasing business in Atlanta catering to drug traffickers who used untraceable cash deposits to pay Chulpayev for cars registered in other people’s names. In 2012, Chulpayev expanded his operation to Miami with the help of coconspirators Paul Carruth, Lyle Stephen Livesay, and Kimberly Ann Reiss.
To create an inventory of these vehicles, Chulpayev and his associates recruited straw purchasers – people who would buy luxury cars in their names but had no intention of actually using the vehicles. The straw purchasers then gave the cars to Chulpayev to be leased to others, including to drug traffickers who used drug proceeds to pay Chulpayev for the pricey leases, and to high-profile clients connected to the music and sports industries. The straw purchasers bought the cars using bank loans and financed several luxury vehicles in a short period of time before the new loans appeared on their credit reports. Chulpayev and his associates gave the straw purchasers falsified documents, including fake paychecks, to use for the loan applications. Chulpayev initially made the loan payments for the straw purchasers. But when he stopped, his straw purchasers were left responsible for handling the payments. When the straw purchasers inevitably defaulted on the loans, Chulpayev left the banks to try to repossess the cars from the drug traffickers or to locate vehicles moved to other states, stolen, or exported to foreign countries. Chulpayev eventually orchestrated the purchase of more than 115 cars, including Bentleys, Aston Martins, Maseratis, Lamborghinis, Ferraris, and Porsches worth more than $9 million.
One of Chulpayev’s drug trafficking clients was Kevin Johnson, also known as “Webb,” who was the leader of a drug trafficking operation in the Atlanta area that moved packages of drugs through the mail and employed as a talent scout and booking agent for rap artists. Johnson leased several flashy cars for members of his drug trafficking operation. Following a federal wiretap investigation, Johnson and four of his associates were convicted of federal drug trafficking charges. In a spinoff investigation, 17 mail carriers and other employees of the U.S. Postal Service were convicted of collecting bribes to deliver packages of drugs through the mail.
Chulpayev also used relationships with corrupt law enforcement agents to advance and protect his scheme by helping him repossess cars, arrest competitors and enemies, and avoid arrest himself. He first gained the officers’ trust by feeding them information about his drug trafficker clients, but gradually curried their favor through bribes and other means. Robert Bentivegna was a Detective with the Dunwoody Police Department and a Task Force Officer with the U.S. Secret Service who received bribes from Chulpayev in the form of airline tickets, legal fees, and luxury cars for his children. In exchange, Bentivegna agreed to alert Chulpayev about any arrest warrants issued for him. Bentivegna was convicted of federal computer access crimes and sentenced to prison.
Mani Chulpayev, also known as “Mani Chilpayen,” and “Immanuel Cohen,” 46, of Kew Gardens, New York, was sentenced to ten years in prison, followed by three years of supervised release, and ordered to pay restitution of $4,663,978.73. Chulpayev was convicted of conspiracy to commit bank and mail fraud on July 31, 2023, after he pleaded guilty.
The following defendants were previously convicted as part of Operation Riding Dirty:
- Lyle Stephen Livesay, 36, of Colbert, Georgia, was sentenced on July 15, 2021, to eight years, one month in prison (with credit for four years served on a prior conviction), followed by three years of supervised release, and ordered to pay restitution of $2,644,722.15, after pleading guilty to conspiracy to commit bank and mail fraud and conspiracy to commit money laundering.
- Paul Alexander Carruth, 39, of Boynton Beach, Florida, was sentenced on November 28, 2018, to five years in prison, followed by three years of supervised release, and ordered to pay restitution of $93,498.36, after pleading guilty to conspiracy to commit bank fraud, mail fraud, and money laundering.
- Kimberly Ann Reiss, 38, of Miami Beach, Florida, was sentenced on July 15, 2021, to five years in prison, followed by three years of supervised release, and ordered to pay restitution of $2,674,563.05, after pleading guilty to conspiracy to commit bank and mail fraud and conspiracy to commit money laundering.
- Kevin Michael Johnson, 48, of Lilburn, Georgia, was sentenced on June 16, 2016, to six years, six months in prison, followed by four years of supervised release, after pleading guilty to conspiracy to possess with the intent to distribute controlled substances.
- Walter Ray Hamilton, 42, of Stone Mountain, Georgia, was sentenced on November 2, 2016, to six years, three months in prison, followed by six years of supervised release, after pleading guilty to conspiracy to possess with the intent to distribute controlled substances and maintaining a place for distributing drugs within 1,000 feet of a school.
- James Robert Jones, also known as “Sean Jones,” 50, of Dallas, Georgia, was sentenced on November 2, 2016, to five years, ten months in prison, followed by three years of supervised release, after pleading guilty to conspiracy to possess with the intent to distribute controlled substances.
- Jeorge Collier, 38, of Lithonia, Georgia, was sentenced on December 21, 2017, to five years, one month in prison, followed by seven years of supervised release, after pleading guilty to conspiracy to possess with the intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
- Eric Swiney, 51, of Forest Park, Georgia, was sentenced on May 10, 2016, to five years, ten months in prison, followed by four years of supervised release, after pleading guilty to conspiracy to possess with the intent to distribute controlled substances.
- Robert Pasquale Bentivegna, 73, of Woodstock, Georgia, was sentenced on June 30, 2015, to two months in prison, followed by two years of supervised release, and ordered to pay a fine of $1,500, after pleading guilty to unauthorized use of a computer.
Additionally, from February 13, 2018, to March 30, 2023, 17 U.S. Postal Service employees and one non-postal employee were convicted in four separate indictments and sentenced to a range of three to nine years of prison for bribery, conspiracy to distribute controlled substances, attempt to distribute controlled substances, and unlawfully using the mail to distribute controlled substances.
This case was investigated by the Drug Enforcement Administration and U.S. Postal Inspection Service, with valuable assistance provided by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Marshals Service.
Assistant U.S. Attorney Garrett L. Bradford prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Readout of Disruptive Technology Strike Force One-Year SummitRead the Press Release
On Feb. 7 and 8, the Justice Department’s National Security Division hosted a summit in Phoenix, Arizona, to commemorate the one-year anniversary of the launch of its Disruptive Technology Strike Force – an interagency law enforcement effort aimed at preventing critical technologies from being acquired by authoritarian regimes and hostile nation-states.
Strike Force co-leads Assistant Attorney General (AAG) Matthew G. Olsen of the Justice Department’s National Security Division and Assistant Secretary for Export Enforcement Matthew Axelrod of the Commerce Department’s Bureau of Industry and Security (BIS), were joined in Phoenix by U.S. Attorney Gary Restaino for the District of Arizona. Deputy Attorney General Lisa O. Monaco delivered virtual remarks to commemorate the one-year anniversary and highlighted all the progress that has been made since she first announced the creation of the Strike Force a year ago.
The two-day event began with a law enforcement-only day focused on case studies, best investigative practices, briefings on cutting-edge technologies, and one-year reports from all 15 of the local cells. On the second day, the Strike Force was joined by private sector and academia representatives from across the country for sessions describing the work of the Strike Force across multiple subject areas, corporate compliance, best practices for building trade compliance programs, and law enforcement outreach efforts. Along with U.S. government officials, the summit consisted of presenters from the private sector and academia, including officials from Arizona State University, which hosted the event at its Sandra Day O’Connor College of Law.
Members of the Ukrainian government attended the summit as honored guests to present on the use of advanced technology by Russia in its unlawful and full-scale war of aggression against Ukraine, and how the work of the Strike Force can assist Ukraine’s war efforts. Yuriy Bielousov, the Head of the War Crimes Department in the Office of the Prosecutor General; Dr. Nataliia Nestor, the Deputy Director of the Kyiv Scientific Research Institute of Forensic Expertise in the Ministry of Justice; and Vladyslav Vlasiuk, an advisor on sanctions in the Office of the President of Ukraine represented Ukraine at the summit. The three were among the Ukrainian officials with whom AAG Olsen and Assistant Secretary Axelrod met during their trip to Kyiv in late 2023. The Strike Force is grateful for its close partnership with the Ukrainian government.
During the event, AAG Olsen and Assistant Secretary Axelrod announced the expansion of the Strike Force to three new metropolitan areas and formally recognized the Defense Department’s Defense Criminal Investigative Service (DCIS) as a partner in the Strike Force. All five agencies that make up the Strike Force—the Justice Department’s National Security Division, the Commerce Department’s BIS, the FBI, the Department of Homeland Security’s Homeland Security Investigations (HSI), and DCIS—were represented at the one-year summit.
In addition to the co-leads of the Strike Force, attendees included Ryan Buchanan, the U.S. Attorney for the Northern District of Georgia; Jill Steinberg, the U.S. Attorney for the Southern District of Georgia; Markenzy Lapointe, the U.S. Attorney for the Southern District of Florida; Alamdar Hamdani, the U.S. Attorney for the Southern District of Texas; Ismail Ramsey, the U.S. Attorney for the Northern District of California; Joshua Levy, the Acting U.S. Attorney for the District of Massachusetts; Raj Parekh, the First Assistant U.S. Attorney for the Eastern District of Virginia; Grant Fleming, the Deputy Director for Investigative Operations at DCIS; and James Mancuso, the Assistant Director for HSI.
Rapid City Man Sentenced to over 23 Years on Drug Conspiracy and Firearm ChargesRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Rapid City, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine and Prohibited Person in Possession of a Firearm and Ammunition. The sentencing took place on February 7, 2024.
Sam Boyd, 35, was sentenced to 23 1/3 years in federal prison, followed by five years of supervised release, a $1,000 fine, and ordered to pay a $300 special assessment to the Federal Crime Victims Fund.
Boyd was indicted for Conspiracy to Distribute Methamphetamine and Prohibited Person in Possession of a Firearm and Ammunition by a federal grand jury in February of 2022. He was convicted at a federal jury trial in November of 2023.
In the fall of 2020, Boyd began obtaining methamphetamine from a co-conspirator in Colorado Springs, Colorado. The methamphetamine was both mailed or transported to western South Dakota on multiple occasions by Boyd and his co-conspirators. Boyd then distributed the methamphetamine to others for use and to further distribute. Throughout the conspiracy, Boyd routinely possessed multiple firearms and ammunition, despite being prohibited from doing so due to a prior felony conviction.
This case was investigated by Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Unified Narcotics Enforcement Team, which is a local drug task force comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Boyd was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Child Pornography ChargeRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange has sentenced a Rapid City, South Dakota, man convicted of Possession of Child Pornography. The sentencing took place on February 5, 2024.
James W. Williams, 28, was sentenced to four years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Williams will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Williams was indicted for Receipt of Child Pornography and Possession of Child Pornography by a federal grand jury in May of 2021. He pleaded guilty on November 3, 2023.
Williams was federally indicted following a Cybertip from the National Center of Missing and Exploited Children in relation to suspected child pornography on Instagram. The Internet Crimes Against Children Taskforce traced the account back to Williams and interviewed Williams. Williams ultimately admitted to receiving the child pornography via Instagram. A forensic examination of Williams’ phone revealed images and videos of child sexual abuse material that Williams received between November of 2019 and December of 2020.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the Internet Crimes Against Children Taskforce, South Dakota Division of Criminal Investigation, Homeland Security Investigations, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Williams was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Receives 11 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange has sentenced a Rapid City, South Dakota, man convicted of Attempted Enticement of a Minor Using the Internet. The sentencing took place on February 6, 2024.
Burton Dave Chief, Jr., 35, was sentenced to 11 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Chief will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Chief was indicted for Attempted Sexual Exploitation of a Minor, Attempted Enticement of a Minor Using the Internet, and Attempted Receipt of Child Pornography by a federal grand jury in August of 2023. He pleaded guilty on November 6, 2023.
Chief was arrested as a result of an undercover sex trafficking operation conducted during the 2023 Sturgis Motorcycle Rally, targeting internet predators. Following multiple chats and sexually explicit text messages with a person Chief believed to be a 14-year-old girl, but who was in fact an undercover agent, Chief proceeded to negotiate a time and place he would meet the minor to engage in unlawful sex acts.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the Internet Crimes Against Children Taskforce, South Dakota Division of Criminal Investigation, Homeland Security Investigations, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Chief was immediately remanded to the custody of the U.S. Marshals Service.
RICO Conspirators Responsible for Nationwide Computer Intrusions and Tax Fraud Sentenced to Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Andi Junior Jacques and Dickenson Elan to federal prison terms for their roles in a RICO conspiracy involving cyber intrusions and millions of dollars of tax fraud. Six co-defendants were previously sentenced for their roles in the offense and one will be sentenced at a later date for his involvement in the conspiracy. See chart below for details.
Defendant
(Age, Residence)
Status
Charge(s)
Sentence Imposed
Louisaint Jolteus
(37, West Palm Beach)
Pleaded guilty July 6, 2022
RICO conspiracy
9 years, 2 months in prison; $2,928,841 in restitution
Louis Noel Michel
(29, Hollywood)
Pleaded guilty July 25, 2023
RICO conspiracy and aggravated identity theft
6 years, 8 months in prison; $1,941,533 in restitution
Andi Jacques
(42, Greenacres)
Pleaded guilty August 23, 2023
RICO conspiracy and aggravated identity theft
16 years in prison; $4,291,272 in restitution
Jeff Jordan Propht-Francisque
(29, Pompano Beach)
Pleaded guilty August 29, 2023
RICO conspiracy
4 years in prison; $2,574,235 in restitution
Michael Jean Poix
(33, West Palm Beach)
Pleaded guilty August 29, 2023
RICO conspiracy and aggravated identity theft
10 years, 10 months in prison; $130,771 in restitution
Alain Jean-Louis
(32, Miami)
Pleaded guilty August 31, 2023
RICO conspiracy and aggravated identity theft
8 years, 6 months in prison; $2,554,907 in restitution
Monika Shauntel Jenkins
(34, Hollywood)
Pleaded guilty September 18, 2023
RICO conspiracy and aggravated identity theft
7 years, 3 months in prison; $3,384,913 in restitution
Vladimyr Cherelus
(34, Lauderdale Lakes)
Pleaded guilty September 18, 2023
RICO conspiracy
Sentencing hearing is scheduled for February 29, 2024
Dickenson Elan
(40, Clearwater)
Found guilty (jury trial) November 6, 2023
RICO conspiracy
11 years, 3 months in prison; $4,291,272 in restitution
According to court documents, from 2015 through 2019, the defendants and numerous other conspirators—including a now-deceased conspirator who is referenced in the indictment as RICH4EVER4430—banded together to engage in a sophisticated cybercrime and tax fraud scheme. RICH4EVER4430, Jean-Louis, Jenkins, Michel, Propht-Francisque, and Cherelus used the dark web to purchase server credentials for the computer servers of Certified Public Accounting (CPA) and tax preparation firms across the country. They used those server credentials to remotely and covertly commit computer intrusions and exfiltrate the tax returns of thousands of taxpayers who were clients of those CPA and tax preparation firms.
Jacques, Elan, Jean-Poix, and Jolteus were involved with creating and operating fraudulent tax businesses to file false tax returns in the names of thousands of victims. They also registered preparer tax identification numbers with the Internal Revenue Service (IRS) using the names and information of identity theft victims to make it appear those victims were the individuals who were filing false returns in bulk.
RICH4EVER4430, Jean-Louis, Jenkins, Michel, Propht-Francisque, Cherelus, and other conspirators then partnered with Jacques, Elan, Poix, Jolteus, and others to form an enterprise through which they filed thousands of false tax returns in the names of more than 9,000 identity theft victims.
The conspirators directed the resulting tax refunds to debit cards and bank accounts they controlled. To make the businesses appear more legitimate, members of the enterprise opened bank accounts in the names of these fraudulent tax businesses to receive fake “tax preparer fees.”
As the RICO conspiracy evolved, members of the enterprise “hijacked” the IRS-issued identification numbers of CPA and tax preparation firms and used those identification numbers to file scores of additional false tax returns. Members of the enterprise filed false self-prepared tax returns using stolen identities as well. Altogether, the enterprise claimed more than $45 million in false tax refunds over approximately four years. The actual loss to the IRS and the United States was estimated to be more than $7 million.
“The recent sentencings of these co-conspirators, highlights the unwavering dedication of IRS-CI and our law enforcement partners in combating cybercrime. Our determination remains resolute in pursuing individuals who exploit technology as a means to commit unlawful activities,” said Tara K. Reed IRS-CI Acting Special Agent in Charge. “These sentences serve as a stark warning to potential wrongdoers that there is nowhere to hide, and IRS-CI will work tirelessly to bring you and your misdeeds to light.”
“This was a milestone investigation for the FBI because of the RICO cybercrime conspiracy,” said FBI Tampa Division Special Agent in Charge David Walker. “It underscores the evolution of the cyber threat and how criminals are learning cyber tradecraft in an attempt to advance their criminal enterprises. However, this case also demonstrates how the FBI and our law enforcement partners are evolving our approach to investigations and prosecutions to continue to successfully disrupt cyber gangs.”
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation in Orlando, with assistance from the FBI Miami and IRS-CI Minnesota. It was prosecuted by Assistant United States Attorneys Emily C. L. Chang, John M. Gardella, William S. Hamilton, Dana E. Hill, and Special Assistant United States Attorney Matthew Del Mastro.
Phoenix Driver Sentenced to Prison for Conspiracy to Transport Five Border CrossersRead the Press Release
PHOENIX, Ariz. – Dinero Devon Washington, 46, of Phoenix, was sentenced last week by United States District Judge Michael T. Liburdi to 24 months in prison, to be followed by 36 months of supervised release. Washington pleaded guilty to Conspiracy to Transport Illegal Aliens on September 7, 2023.
On April 16, 2021, Washington and his co-conspirator, Alina Pablo, approached the fixed Border Patrol checkpoint in Ajo in a Ford F-150. Border Patrol agents noted five other passengers in the vehicle, all wearing camouflaged clothing with backpacks and carpeting on their shoes, indicators of having recently crossed the border between Mexico and the United States. Questioning by agents confirmed that all five passengers were citizens and nationals of Mexico or Guatemala with no permission to enter the United States and had recently been picked up by Washington and Pablo. Subsequent searches of Washington’s cell phone revealed detailed evidence of the planning and logistics of the smuggling effort, including pin drops, maps, and text messages. Pablo, Washington’s co-conspirator, pleaded guilty to her role in the offense and will be sentenced later this year.
Homeland Security Investigations-Phoenix office conducted the investigation in this case. Assistant U.S. Attorney Louis Uhl, District of Arizona, Yuma, handled the prosecution.
CASE NUMBER: CR-22-00544-MTL-2
RELEASE NUMBER: 2024-016_Washington# # #
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.Parmelee Man Sentenced for Possession of Unregistered Firearm, Possession of Firearm by a Prohibited Person, and Assault on a Federal OfficerRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Roberto A. Lange has sentenced a Parmelee, South Dakota, man convicted following two separate jury trials of Possession of Unregistered Firearm, Possession of Firearm by a Prohibited Person, and Assaulting, Resisting, and Impeding a Federal Officer. The sentencings took place on February 1, 2024.
Jeremy Duane Young, age 29, was sentenced to seven years in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $300.
Young was indicted by a federal grand jury in March of 2023 on the firearm offenses and in April of 2023 on the assault offense.
The firearm conviction stemmed from an incident in May of 2022 in the Soldier Creek community within the Rosebud Reservation. Young, a previously convicted felon who was prohibited from possessing firearms, was found in possession of a short-barrel 12-gauge shotgun, which was found after Young came into contact with law enforcement following a traffic stop. The short shotgun was not registered to Young in the National Firearms Registration and Transfer Record as required by law. As part of the investigation, Young admitted to law enforcement that he and another individual were on their way to Sioux Falls on a drug run to pick up methamphetamine.
The assault conviction stemmed from an incident in March of 2023, in the Soldier Creek community within the Rosebud Reservation, when Young assaulted a Rosebud Sioux Tribe Law Enforcement Officer. The officer had been called to the community over a concern of a running vehicle blocking the roadway, and determined Young was passed out in the driver’s seat. When the officer contacted Young to get out of the vehicle, Young refused to exit, became argumentative, combative, and engaged in a physical struggle with the officer. Young then punched the officer in the face and fled on foot. Young was located and arrested an hour later.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Meghan N. Dilges and Brian Murphy prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Young was immediately remanded to the custody of the U.S. Marshals Service.
Omaha Nation Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Susan Lehr announced that Dante Stabler, 23, of Walthill, Nebraska, was sentenced on February 9, 2024, in federal court in Omaha, Nebraska for assault with a dangerous weapon with intent to do bodily harm. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Stabler to 72 months’ imprisonment. There is no parole in the federal system. After Stabler’s release from prison, he will begin a 2-year term of supervised release.
On February 22, 2023, on the Omaha Nation Indian Reservation, Stabler and another man got into an altercation over Stabler allegedly taking a vehicle from the other man without his permission. The man confronted Stabler and Stabler fired a handgun at the man as he approached him. The man continued to approach Stabler and the two ended up in a physical altercation, falling into the open door of a minivan. The minivan, driven by an unknown person, sped away with the two still struggling. Stabler fired the gun again, shooting the man in the pinky finger. The man was able to get out of the moving van and then went to the hospital. The initial altercation and the two falling into the van were caught on video by another witness.
This case was charged in federal court because an assault with a dangerous weapon in Indian Country is a felony level assault under the Major Crimes Act.
This case was investigated by Omaha Nation Law Enforcement Services and the FBI.
Ohio Man Pleads Guilty to Multiple Federal Charges, Including a Freedom of Access to Clinic Entrances (FACE) Act Violation, for Threatening a Reproductive Health Services ClinicRead the Press Release
An Ohio man pleaded guilty today to a misdemeanor charge under the Freedom of Access to Clinic Entrances (FACE) Act, which prohibits a person from intentionally interfering with or intimidating any person because that person is providing reproductive health services. Mohamed Waes, 33, of Columbus, also pleaded guilty to felony charges of communicating interstate threats and conspiracy to commit money laundering.
According to court documents and statements made in court, on July 5, 2022, Waes intentionally interfered with and intimidated employees of Planned Parenthood of Greater Ohio by threatening over the phone to burn down their building because they were providing reproductive health services.
“Threatening to burn down facilities that provide reproductive health services is not just unlawful, it’s conduct that frightens and obstructs patients and providers of reproductive services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to enforcing the FACE Act to protect all patients who seek reproductive health services and to protect all staff and facilities that provide these services.”
“We will hold accountable individuals who make threats of force against health service providers and institutions,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “At the U.S. Attorney’s Office, we will do our part in charging those who break federal laws. As a society, we must handle our disagreements in a more civil way than threats of violence and intimidation.”
“Mohamed Waes made a credible threat to commit violence and harm others,” said Acting Special Agent in Charge Cheryl Mimura of the FBI Cincinnati Field Office. “The FBI will continue to aggressively pursue civil rights violations and work with our partners to keep the community safe.”
“Waes played a crucial role in a business email compromise scheme by attempting to launder nearly $2 million in fraud proceeds,” said Acting Special Agent in Charge Karen Wingerd of the IRS Criminal Investigation (IRS:CI) Cincinnati Field Office. “IRS:CI remains committed to following the money and bringing those who launder illegal proceeds to justice.”
According to court documents, Waes also conspired with others from on or about March 21, 2019, through on or about March 4, 2020, to launder funds using business email compromise (BEC) fraud schemes. As part of this conspiracy, scammers created fake email domains which mimicked legitimate email domains and then sent emails to various companies impersonating vendors and asking that payments be made on actual invoices to bank accounts controlled by Waes and others. Waes attempted to launder a total of $1,972,792.84 in BEC proceeds, of which he successfully laundered $273,982.08.
A sentencing hearing will be set at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Cincinnati Field Office and IRS:CI investigated the case.
Assistant U.S. Attorneys Jennifer Rausch and Peter Glenn-Applegate for the Southern District of Ohio and Trial Attorney Daniel Grunert of the Civil Rights Division’s Criminal Section are prosecuting the case.
Nurse Practitioner Arrested for Unlawful Drug DistributionRead the Press Release
ALBANY, NEW YORK – Christopher Viagrande, age 41, of Latham, New York, was arrested earlier this week and charged with distributing controlled substances outside the course of professional practice and for no legitimate medical purpose.
United States Attorney Carla B. Freedman and Special Agent in Charge Frank A. Tarentino III, U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
A criminal complaint charges Viagrande, a psychiatric nurse practitioner, with prescribing amphetamine (a Schedule II controlled substance) on 40 occasions to someone who was never his patient, from May 2021 to December 2023. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Viagrande was arrested on Tuesday and ordered released on Thursday with conditions, including a prohibition on his prescribing controlled substances.
If convicted on the charge in the complaint, Viagrande faces up to 20 years in prison and a fine of up to $1 million, as well as up to 3 years of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Anyone wishing to report information about Viagrande or his Latham-based practice, Crossroads Psychiatry NP, may contact the DEA Albany District Office at (518) 782-2000.
The DEA’s Tactical Diversion Squad (TDS) is investigating this case. TDS is comprised of DEA Special Agents and Diversion Investigators, as well as Investigators from the New York State Department of Health, Bureau of Narcotic Enforcement. Assistant U.S. Attorney Michael Barnett is investigating this case.
New York Man Sentenced for Failing to Pay Federal Payroll TaxesRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Nanuet, New York, man convicted of Failure to Withhold, Properly Account For, and Pay Over Tax. The sentencing took place on February 7, 2024.
Asher Wagh, 48, was sentenced to 14 months in federal prison, followed by two years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $273,766.98 in restitution to the Internal Revenue Service.
Wagh was indicted on ten counts of Failure to Withhold, Properly Account For, and Pay Over Tax by a federal grand jury in February of 2021. He pleaded guilty on October 16, 2023.
Between 2015 and 2017, Wagh was a co-owner and the sole manager of Captech International LLC, an ammunition component manufacturing company located in Rapid City, South Dakota. As the sole manager, Wagh was responsible for withholding, accounting for, and paying over federal payroll taxes, including federal income tax, Social Security, and Medicare taxes. Between 2015 and 2017, Wagh withheld the payroll taxes from employees’ paychecks and then willingly failed to pay over the taxes to the Internal Revenue Service. Thereafter, Wagh used at least a portion of the withholdings for his own personal use. In total, Wagh failed to pay over to the IRS more than $273,000.00.
This case was investigated by the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Wagh was immediately remanded to the custody of the U.S. Marshals Service.
New Orleans Man Indicted for Federal Drug and Machinegun OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that RENARD SANTIAGO, age 18, of New Orleans, was indicted on February 8, 2024, for violations of the Federal Gun Control Act and Federal Controlled Substances Act.
SANTIAGO is charged in Count 1 of the indictment with conspiracy to distribute and possess with intent to distribute marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(D), and 846. He is charged in Count 2 with possession with intent to distribute marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D). He is charged in Count 3 with possessing a machinegun in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1)(B)(ii). He is charged in Count 4 with possession of a machinegun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2).
As to Counts 1 and 2, SANTIAGO faces up to 5 years in prison, up to a $250,000 fine, and at least two years of supervised release. If convicted of Count 3, he faces a minimum of 30 years in prison up to a maximum sentence of life, which must run consecutive to any other sentence, up to a $250,000.00 fine, and up to five years of supervised release. If convicted of Count 4, he faces up to 10 years in prison, up to a $10,000 fine, and up to three years of supervised release. Each count also carries a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney David Berman of the Violent Crime Unit is in charge of the prosecution.
New Mexico Couple Sentenced to Prison for Methamphetamine ChargeRead the Press Release
United States Attorney Susan Lehr announced that Valerie Braswell, 43, and Michael Braswell, 42, of Taos, New Mexico, were sentenced February 9, 2024, in federal court in Omaha for conspiracy to distribute methamphetamine. United States District Court Judge Brian C. Buescher sentenced Valerie Braswell to 30 months’ imprisonment, and Michael Braswell to 180 months’ imprisonment. There is no parole in the federal system. After Valerie’s release from prison, she will begin a 2-year term of supervised release. After Michael’s release he will begin a 5-year term of supervised release.
On May 31, 2022, law enforcement utilized a cooperating witness who arranged for the delivery of 5 kilograms of methamphetamine to an Omaha location. Surveillance officers observed the Braswells arrive at the meet location in a vehicle where Michael exited the vehicle, removed a bag from the backseat and delivered it to the cooperating witness. Valerie was identified as the driver from surveillance cameras. The cooperating witness was wearing a recording device that captured Michael handing him a box containing 5 pounds of meth.
On July 10, 2022, the Braswells were stopped in Missouri and found in possession of approximately 3 grams of meth and a firearm (found on the passenger seat where Michael was sitting). After their arrest, Michael admitted they were coming back from a methamphetamine delivery and had made at least 4 other trips delivering approximately 10-15 pounds of methamphetamine on each trip. Valerie denied any knowledge of methamphetamine but did admit to going on prior trips with Michael.
This case was investigated by the Federal Bureau of Investigation.
Multi-Convicted Felon Sentenced to over Ten Years for Drug Trafficking and Firearms OffensesRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza has sentenced Antione Oshea Ladson (29, Orlando) to 10 years and 6 months in federal prison for drug trafficking and possessing a firearm and ammunition as a convicted felon. Ladson pleaded guilty on July 11, 2023.
According to court documents, on August 27, 2022, Ladson checked into a hotel in Orlando. While walking through an outdoor breezeway, Ladson encountered another man walking past him. After a brief verbal confrontation with the man, Ladson lifted his modified pistol and shot the man in the neck using a caliber of ammunition similar to that commonly found in military assault rifles (shell casing pictured below). The man survived the shooting.
On November 16, 2022, Ladson was apprehended by law enforcement at a convenience store in Orlando. Beneath a grocery shelf that Ladson was seen lifting, officers found a fanny pack containing Ladson’s wallet and Social Security card, two digital scales used for weighing narcotics, a pistol magazine, and plastic baggies containing cocaine and marijuana. Underneath Ladson’s fanny pack was a Glock 23 pistol loaded with 14 rounds of 9mm ammunition. At the time, Ladson had multiple prior felony convictions and is prohibited from possessing both firearms and ammunition under federal law. Ladson was arrested on state charges and subsequently released on bond.
On December 27, 2022, members of the Orange County Sheriff’s Office Gang Enforcement Unit observed Ladson driving near Orange Blossom Trail and initiated a traffic stop. A search of Ladson’s car revealed an XD9 firearm with 19 rounds of live ammunition, an additional 12-round magazine fully loaded with 9mm rounds, a drum-style magazine (pictured below), 4.8 grams of crack cocaine, and 61.4 grams of marijuana. Photographs of the firearm and drum magazine below:
Court documents further showed that Ladson frequently livestreamed himself driving around the Orlando area while fully armed, often with modified weapons (video stills below):
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Orange County Sheriff’s Office, and the Orange County Sheriff’s Office Gang Enforcement Unit. It was prosecuted by Assistant United States Attorney David Pardo.
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.