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7 February 2024
St. Louis County Man Sentenced to 13+ Years in Prison for Violent Store RobberyRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Wednesday sentenced a man from St. Louis County, Missouri who committed a robbery during which a clerk was shot to 13 years and 10 months in prison.
Monya Jones, now 23, and James Furlow, 20, of St. Ann, Missouri, robbed a Quick Mart in St. Louis County on Dec. 26, 2021. Furlow shot the store clerk in the mouth during the robbery, seriously injuring him.
Earlier that day, Furlow carjacked a 2017 Kia Sorrento SUV at gunpoint. He then tried to break into an ATM by shooting at it as Jones waited in the stolen Kia.
Four days later, Furlow stole a 2021 Volkswagen Tiguan at gunpoint. After police spotted him, Furlow fled, first in the stolen SUV and later on foot, but was caught in a basement.
A dating app was used to set up both carjackings.
“Monya Jones was sentenced to 166 months in federal prison for taking part in a violent armed robbery that netted a hundred bucks after the store clerk was shot,” said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. “This case demonstrates the commitment and effective partnerships between local and federal law enforcement to combat violent crime.”
Jones pleaded guilty in July to one robbery charge and one charge of possession, brandishing and discharge of a firearm in furtherance of a crime of violence.
Furlow is scheduled to be sentenced on March 27 after pleading guilty last year to two counts of carjacking and one count each of possession and brandishing of a firearm in furtherance of a crime of violence, robbery and discharge of a firearm in furtherance of a crime of violence.
The St. Louis County Police Department, the St. Ann Police Department, the Overland Police Department and the FBI investigated the case. Assistant U.S. Attorney Cassandra Wiemken is prosecuting the case.
Springfield Brothers, Two Kansas Men Indicted for Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – Two Springfield, Mo., men and two Parsons, Kansas, men have been indicted by a federal grand jury for their roles in a drug-trafficking conspiracy after law enforcement officers seized 100 pounds of methamphetamine hidden in a vehicle being transported from California, as well as several firearms found at a Springfield residence.
Dontrell Anthony Powell, 34, and his brother, Dreshawn Powell, 26, both of Springfield, and Willie Murry, Jr., 41, and Mark Monta Logan, 33, both of Parsons, were charged in a seven-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday Feb. 6. The indictment replaces a federal criminal complaint that was filed against the defendants on Jan. 19, 2024, and contains additional charges.
According to an affidavit filed in support of the original criminal complaint, the Oklahoma State Highway Patrol searched the vehicles on a car hauler at a truck stop in Oklahoma City, Okla., on Jan. 17, 2024. Officers found approximately 100 pounds of methamphetamine and two pounds of fake pills believed to contain fentanyl hidden in a subwoofer speaker box in the cargo area of one of the cars, a Dodge Magnum. The driver of the car hauler, whom the affidavit says was not involved in the drug shipment, agreed to deliver the Dodge Magnum to its destination at a parking lot in Springfield.
Agents with the Drug Enforcement Administration conducted a controlled delivery later the same day. Dontrell and Dreshawn Powell arrived together and Dontrell Powell met with the driver of the car hauler. Murry and Logan arrived together soon afterward. Dontrell Powell attempted to start the Dodge Magnum, but it would not start. Murray and Logan helped him jump start the vehicle, which he then drove out of the parking lot as the other defendants followed in their vehicles. Agents followed the three vehicles to Dontrell Powell’s residence, where they were arrested.
Agents searched the residence and found, in addition to the controlled delivery from the Dodge Magnum, an AM-15 pistol, .223 ammunition, several high-capacity magazines with ammunition, more than $100,000 in cash, and drug paraphernalia. Agents also found a loaded Glock pistol in one of the vehicles, eight cell phones, two shards of crystal methamphetamine inside two large subwoofer boxes in the garage, four more large subwoofer boxes, and drug paraphernalia.
The federal indictment alleges that Dontrell and Dreshawn Powell, Murry, and Logan participated in a conspiracy to possess with the intent to distribute methamphetamine from Jan. 15 to Jan. 18, 2024. In addition to the conspiracy, all four defendants are charged together in one count of attempting to possess methamphetamine with the intent to distribute.
Dontrell Powell is also charged with one count of money laundering, one count of possessing a firearm in furtherance of a drug-trafficking crime and two counts of being a felon in possession of a firearm. Powell allegedly possessed an Anderson Manufacturing AM-15 multi-caliber semi-automatic pistol and a Glock .40-caliber semi-automatic pistol on Jan. 18, 2024. Powell allegedly possessed another Glock .40-caliber semi-automatic pistol on June 12, 2022. Dontrell Powell has a prior felony conviction for possession of dangerous drugs for sale.
Murry and Logan are also charged together in one count of traveling across state lines from Kansas to Missouri with the intent to carry on or facilitate an unlawful activity (possession with intent to distribute methamphetamine).
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Oklahoma State Highway Patrol.
Six Defendants Charged with Defrauding Court-Appointed Criminal Defense AttorneysRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, two indictments were unsealed charging six defendants with defrauding court-appointed criminal defense attorneys. As alleged in the indictments, the defendants deposited stolen checks intended to reimburse the attorneys for their time and expenditures representing indigent defendants in federal court. Three defendants also allegedly stole the identity of an attorney and opened bank accounts using the attorney’s stolen identity. Five defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Taryn A. Merkl at the federal courthouse in Brooklyn. One defendant is still at large.
Today’s indictments are the first charges brought in the government’s ongoing criminal investigation into the widespread theft and depositing of checks issued to participants in the federal criminal justice system. The investigation has identified over $1 million in checks issued by the Department of the Treasury on behalf of the Administrative Office of the United States Courts that have been stolen and deposited into unauthorized accounts since 2021. The intended recipients of these checks include court-appointed criminal defense attorneys, paralegals, investigators, translators, court reporters, and jurors.
Breon Peace, United States Attorney for the Eastern District of New York, Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS) and Tammy Whitcomb Hull, Inspector General, United States Postal Service Office of Inspector General (USPS OIG) announced the charges.
Mr. Peace expressed his appreciation for the New York City Police Department and United States Marshals Service for their assistance in this case.
Overview
The stolen checks charged in the two indictments were intended to pay private attorneys who serve on the Criminal Justice Act (CJA) Panel in the Eastern and Southern Districts of New York. When a criminal defendant cannot afford an attorney, the court often appoints a member of the CJA Panel to handle the representation. The Department of the Treasury issues checks to the CJA attorney on behalf of the Administrative Office of the United States Courts, which is sent by mail to the CJA attorney’s address of record. In particularly complex criminal cases, reimbursement checks can exceed $100,000. When a reimbursement check is lost or stolen, issuance of a replacement check typically takes several months—a process that leaves the CJA attorneys uncompensated for a significant time as they await a new check.
United States v. Tyquan Robinson, Ada Tavarez, and Markel Washington
As alleged in the indictment and court documents, Ada Tavarez impersonated a CJA attorney and then opened bank accounts using that CJA attorney’s stolen identity. In or about June 2023, Tavarez presented fraudulent identification documents to a bank teller with the CJA attorney’s personal data, including a driver’s license with Tavarez’s photograph along with the CJA attorney’s name and birthdate. On the account opening paperwork, Tavarez listed a fraudulent email account containing the CJA attorney’s personal identifiers in the email account name.
After the bank opened the accounts in the name of the CJA attorney, Tavarez returned to the branch several days later. She then attempted to deposit a stolen $125,386.81 check containing a forged signature for the CJA attorney.
The defendants Markel Washington and Tyquan Robinson facilitated this scheme with Tavarez. Washington accessed the fraudulent bank accounts online. When the bank placed a hold on the check, Washington made several calls to the bank asking that the funds be released. Also, saved in Washington’s iCloud account were several versions of the same photograph of Tavarez printed on the fraudulent driver’s license with the CJA attorney’s name and personal data.
Robinson contributed to this scheme by accessing the fraudulent email account that had been created using the CJA attorney’s personal identifiers and submitted to the bank at account opening. Robinson also listed his telephone number as the fraudulent email account’s recovery telephone number. In addition, a note in Robinson’s iCloud account contained the CJA attorney’s personal data.
The defendants have been charged with bank fraud and conspiracy to commit wire fraud and bank fraud. Tavarez has also been charged with one count of aggravated identity theft.
United States v. Nicholas Barton, et al.
As alleged in the indictment and court documents, between at least November 2020 and October 2022, the defendants Nicholas Barton, Richard Reid and a third co-defendant participated in a scheme to cash checks issued to third parties into accounts over which the defendants had access and control. One of the stolen checks they deposited was issued to a CJA attorney in the amount of $14,856. After the CJA attorney’s stolen check was cashed in Reid’s bank account, all three defendants benefited from its proceeds, by withdrawing cash from ATMs, making purchases at stores and restaurants, transmitting payments among each other and to others through cash transfer mobile applications, and booking flight tickets. Each defendant has been charged with conspiracy to commit wire fraud and bank fraud; wire fraud; and bank fraud.
The charges in the indictments are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Assistant United States Attorney James R. Simmons is in charge of the prosecutions, with assistance from EDNY Special Agents Anthony Cunder and Rebecca Sidhu.
The Defendants:
TYQUAN ROBINSON
Age: 29
East Orange, New JerseyADA TAVAREZ
Age: 58
Bronx, New YorkMARKEL WASHINGTON
Age: 28
Bronx, New YorkE.D.N.Y. Docket No. 24-CR-51 (AMD) (LB)
NICHOLAS BARTON
Age: 27
Brooklyn, New YorkRICHARD REID
Age: 26
New York, New YorkE.D.N.Y. Docket No. 24-CR-49 (NRM)(RML)
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Shreveport Business Owner Found Guilty of Making False Statements to the Federal Aviation AdministrationRead the Press Release
SHREVEPORT, La. – After a week-long trial and 15 hours of deliberating, a federal jury returned a guilty verdict late yesterday afternoon against Edward L. Angel, Sr., 70, of Shreveport, announced United States Attorney Brandon B. Brown. The jury found Angel guilty on three counts of making false statements to the Federal Aviation Administration (FAA). United States District Judge David C. Joseph presided over the trial.
In addition to the three counts of making false statements that Angel was convicted of, he was also charged with 76 counts of theft of government funds from the Department of Veteran Affairs and Social Security Administration. After their long deliberation, the jury was deadlocked, could not reach a verdict on those 76 counts, and Judge Joseph declared a mistrial regarding those counts. As a result, the government plans to request a new trial date for the pending 76 counts.
Testimony at trial regarding the false statement charges revealed that Angel failed to disclose to the FAA his service-related disability of Primary Lateral Sclerosis, a neurological disorder, on his Application for Airman Medical Certificate on three separate occasions. These false statements were made on documentation submitted in order for him to obtain a medical certificate to lawfully pilot his airplane.
Angel faces a sentence of up to five years in prison, three years of supervised release, and a fine of up to $250,000 on the three FAA counts. Sentencing on those counts has been set for April 26, 2024.
The case was investigated by the U.S. Department of Transportation Office of Inspector General, Department of Veteran Affairs Office of Inspector General, and Social Security Administration Office of Inspector General, and was prosecuted by Assistant United States Attorneys Tennille M. Gilreath and Earl M. Campbell.
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Sex Offender Sentenced to 78 Months in Federal Prison for Abusive Sexual Contact with a MinorRead the Press Release
Greenbelt, Maryland - U.S. District Judge Deborah L. Boardman sentenced Delvon Lashawn Redd, age 30, of Virginia Beach, Virginia, yesterday to 78 months in federal prison, followed by five years of supervised release, for abusive sexual contact with a minor. Judge Boardman also ordered that, upon his release from prison, Redd must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Brian T. Platt of the Naval Criminal Investigative Service, Washington, D.C. Field Office.
According to his guilty plea, from April 17 to May 28, 2022, Redd, a U.S. Navy service member was staying at the Navy Lodge Hotel located at the U.S. Naval Air Station Patuxent River Base in Patuxent River, Maryland. On approximately May 6, 2022, Redd began communicating on a social media platform with an 11-year-old minor female who claimed she was 18 years old. Redd asked the victim to send him pictures of herself and the victim sent a short video of herself. In their online conversations that day, Redd commented on how young the victim looked. Despite that, later that evening Redd drove to the victim’s house in Lexington Park, Maryland, picked the victim up near her home and drove her back to the Navy Lodge, where security footage shows Redd and victim entering his room at approximately 9:44 p.m. Once inside the room, Redd had sexual intercourse with the victim. The following morning, Redd drove the victim back to her house.
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 NCIS for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Christoper Sarma, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Santa Fe Man Sentenced to 48 Months in Prison for Federal Firearms OffenseRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Gilbert Michael Coriz was sentenced to 48 months in prison. Coriz pleaded guilty to being a felon in possession of firearms and ammunition on July 14, 2023.
A federal grand jury indicted Coriz on Dec. 8, 2021. According to publicly available court records, on January 1, 2021, at approximately 2:52 am, Santa Fe Police Department (SFPD) officers were dispatched to the scene of gunshots fired at Coriz’s residence. A neighbor captured the shooting incident on a surveillance recording and showed it to officers. The recording depicted a verbal altercation occurring at approximately 2:30 am among a group of people that resulted in at least two shooters firing gunshots at a vehicle as it fled from Coriz’s residence.
The SWAT team later arrived to extract the occupants from Coriz’s residence using an amplified audio system. Several hours later, three women and four children exited Coriz’s residence. SFPD officers later obtained a state search warrant for Coriz’s residence. The SWAT team cleared Coriz’s residence and located Coriz hiding inside the water heater closet of the garage. The SWAT team detained Coriz and removed him from the garage. At the time, the SWAT team observed a pistol, rifle, and sawed-off barrel shotgun in the garage.
Coriz was previously convicted of aggravated battery, felon in possession of a firearm, tampering with evidence, possession of a controlled substance and residential burglary. As a previously convicted felon, Coriz cannot legally possess firearms or ammunition.
Upon his release from prison, Coriz will be subject to three years of supervised release.
The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Santa Fe Police Department. Assistant United States Attorney Samuel A. Hurtado is prosecuting the case.
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24-61
Reynoldsville Man Sentenced to Five Years in Prison for Narcotics and Firearm ViolationsRead the Press Release
PITTSBURGH, Pa. – A resident of Reynoldsville, Pennsylvania, has been sentenced in federal court to 60 months of imprisonment, followed by three years of supervised release, on his conviction of violating federal narcotics and firearms laws, United States Attorney Eric G. Olshan announced today. This prosecution is the result of a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny.
United States District Judge Christy Criswell Wiegand imposed the sentence on Brenton Ryans, 36.
According to information presented to the Court, Ryans received parcels that were shipped from California containing a total of between five and 15 kilograms of methamphetamine. Investigators searched Ryans’ residence on August 31, 2021, pursuant to a federal search warrant and seized a small amount of methamphetamine and a firearm.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Service, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police for the investigation leading to the successful prosecution of Ryans. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Repeat Felon Sentenced to 30 Months on Firearms ChargeRead the Press Release
WASHINGTON – Vernon Pernell Hedrick, a four-time convicted felon, was sentenced today to 30 months in prison for carrying a Springfield Armory model 1911 semi-automatic handgun, one of the most powerful handguns on the market, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).
Hedrick, 33, pleaded guilty April 6, 2023, to unlawful possession of a firearm by a person convicted of a crime punishable by imprisonment for a term exceeding one year. In addition to the 30 month prison term, U.S. District Court Judge Rudolph Contreras ordered Hendrick to serve 36 months of supervised release.
According to court documents, Hedrick was on active supervised release when police attempted to question him on October 15, 2022, at a supermarket parking lot on the 1500 block of Alabama Ave., Southeast. Officers noticed an L-shaped protrusion from an object tucked in Hendrick’s black satchel. Hedrick became wide-eyed, wiped sweat from his forehead, then tore off in a sprint. Police chased after Hendrick on foot and caught him in 20 seconds. Inside the satchel was the semi-automatic military-grade handgun loaded with nine rounds. Also in the satchel were two additional magazines with another 13 rounds of .45 caliber ammunition. Hedrick told officers he kept the gun for “protection.”
On Oct. 17, 2022, Hedrick was indicted on a charge of felon in possession. On April 6, 2023, Hedrick pleaded guilty to the sole count in the indictment.
Hedrick’s record includes two 2018 convictions in the District for assault with significant bodily injury; a 2012 conviction in Maryland for conspiracy to commit carjacking, and a 2011 District conviction for robbery. A Superior Court jury acquitted Hendrick in 2018 on a first degree murder charge.
This case was investigated by the Metropolitan Police Department. It was prosecuted by Assistant U.S. Attorneys Jared English, Emory V. Cole, and former Assistant U.S. Attorney Connor Mullin.
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Putnam County Felon and Sex Offender Sentenced to 27 Months in Prison for Explosive DeviceRead the Press Release
Jacksonville, FL – U.S. District Judge Timothy J. Corrigan today sentenced Paul Bryan McCorkle (55, Interlachen) to 27 months in federal prison for being a felon in possession of an explosive. The court also ordered McCorkle to forfeit an improvised explosive device. McCorkle entered a guilty plea on October 25, 2023.
According to court documents, McCorkle had been convicted of online enticement of a child in 2003 and was required to register as a sex offender. In 2007, and again in 2013, McCorkle failed to update his sex offender registration as required and was convicted of these felony offenses. As a convicted felon, McCorkle was prohibited from possessing explosives.
On February 22, 2022, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) responded to a mobile home fire in Putnam County. Once there, several witnesses reported that McCorkle had been manufacturing homemade explosives in the mobile home. McCorkle, who was at the scene, informed officers that he had at least two “M80”-type devices in a drawer in his room in the mobile home, as well as components to make the devices. McCorkle voluntarily surrendered to ATF a similar device he was storing at a separate residence. Examination of the device revealed it was approximately 15 inches long and contained more than half a pound of Pyrodex powder, which is an explosive under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Bureau of Fire Arson and Explosives Investigation, and the Putnam County Fire Rescue Department. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Pontotoc County Resident Sentenced for Bank RobberiesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Zakary Keegan Reynolds, age 39, of Stonewall, Oklahoma, was sentenced to 66 months imprisonment on three separate counts of Bank Robbery, with each count running concurrently.
The charges arose from investigations by the Pontotoc County Sheriff’s Office, the Ardmore Police Department, the Chickasaw Nation Lighthorse Police, the Oklahoma Highway Patrol, the Dallas Police Department, and the Federal Bureau of Investigation.
On September 6, 2022, Reynolds pleaded guilty to three separate counts of Bank Robbery. According to investigators, Reynolds robbed three separate banks of over $30,000 in a crime spree spanning three months and two states. On September 28, 2021, Reynolds robbed a Wells Fargo Bank in Dallas, Texas. Six weeks later, on November 12, 2021, Reynolds robbed an American Nation Bank in Ardmore, Oklahoma. Two weeks later, on November 24, 2021, Reynolds robbed a Capital One Bank in Dallas, Texas. Reynolds was apprehended December 6, 2021, in Pontotoc County, after a standoff with law enforcement officers.
The Honorable Timothy D. DeGiusti, Chief Judge of the United States District Court for the Western District of Oklahoma, sitting by assignment, presided over the sentencing hearings in Oklahoma City, Oklahoma. Reynolds will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney T. Cameron McEwen represented the United States.
Pojoaque Man Sentenced to 30 Months in Prison for Involuntary ManslaughterRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Kyle Joseph Harney-Chee was sentenced to 30 months in prison. Chee, 31, of Pojoaque, and an enrolled member of the Ohkay Owingeh Pueblo, pleaded guilty in federal court to involuntary manslaughter on Aug. 15, 2023.
According to publicly available court records, on January 16, 2021, Chee was traveling down US Highway 84/285 after consuming marijuana and alcohol. While driving, Chee became distracted by his phone and looked away from the road. While he was looking down at his phone, Chee struck a motorcycle from the rear, killing the driver. Chee immediately stopped on the side of US Highway 84/285 and called 911. Chee informed responders that he had consumed alcohol and smoked marijuana prior to operating the vehicle and complied with the follow-up investigation by following directives and assisting officers. Officers found several pre-rolled marijuana cigarettes, one cigarette half-burned, several grams of marijuana, a pipe with a burned substance, as well as several empty and half empty bottles of liquor in Chee’s vehicle.
Upon his release from prison, Chee will be subject to 3 years of supervised release.
The Bureau of Indian Affairs investigated this case. Assistant U.S. Attorneys Matthew J. McGinley and Mark A. Probasco are prosecuting the case.
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24-59
Pittsburg County Resident Sentenced for Voluntary Manslaughter and Child Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Devin Warren Sizemore, age 29, of Krebs, Oklahoma, was sentenced to 180 months for one count of Voluntary Manslaughter in Indian Country, and 180 months imprisonment for one count of Child Abuse in Indian Country. The sentences will be served concurrently.
The charges arose from investigations by the Pittsburg County Sheriff’s Office, the Krebs Police Department, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
On April 7, 2023, a federal jury found Sizemore guilty of one count of Voluntary Manslaughter in Indian Country, and one count of Child Abuse in Indian Country. According to investigators, on July 14, 2016, law enforcement officers located Sizemore in a pond next to an unresponsive child. The child, who died from drowning, had sustained multiple injuries, and was later pronounced dead at an area hospital. The crimes occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings. Sizemore will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Pharmacy Owner and Administrator Admit Roles in Multimillion-Dollar Health Care Fraud and Kickback SchemeRead the Press Release
TRENTON, N.J. – The co-owner and the administrator of a Union City, New Jersey, pharmacy today admitted their roles in conspiracies to defraud pharmacy benefit managers and health care benefit providers, including Medicare and Medicaid, of more than $65 million and to pay kickbacks and bribes to health care professionals and their staffs in exchange for referrals of prescriptions, U.S. Attorney Philip R. Sellinger announced.
Samuel “Sam” Khaimov, 52, and his wife, Yana Shtindler, 48, both of Glen Head, New York, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court. Khaimov pleaded guilty to two counts of a superseding indictment charging him with conspiring to commit health care fraud and conspiring to violate the federal anti-kickback statute. Shtindler pleaded guilty to conspiring to commit health care fraud. Khaimov and Shtindler’s codefendants, Ruben Sevumyants of Marlboro, New Jersey, and Alex Fleyshmakher of Morganville, New Jersey, have already pleaded guilty to counts in the superseding indictment and are awaiting sentencing.
U.S. Attorney Philip R. Sellinger“These defendants admitted taking part in an elaborate and years-long scheme to use their specialty pharmacy to rip off Medicare, Medicaid and private insurers. They paid bribes, kickbacks, set up phony jobs in doctors’ offices. They took reimbursements for medications that never dispensed and falsified records, defrauding insurers via pharmacy benefits managers of more than $65 million. Protecting the integrity of our healthcare system at all levels is a top priority for this office. We will continue to work relentlessly with our enforcement partners to ensure those who commit healthcare fraud or undermine the integrity of medical decision-making through bribes and kickbacks face justice, like the defendants in this case.”
“The impacts of health care fraud are far-reaching,” FBI – Newark Special Agent in Charge James E. Dennehy said. “These schemes not only put a tremendous amount of strain on our resources, but also have significant impacts on insurance costs and chip away at the foundation of trust we have in our health care providers. Bottom line, the conspirators in this case put personal greed above quality patient care. While we are happy to see Khaimov, Shtindler and their crew face justice, we will remain at work for the American public and continue seeking out and shutting down these scams.”
“The defendants’ role in the conspiracies to defraud pharmacy benefit managers, health care benefit providers, and taxpayers via Medicare and Medicaid of more than $65 million is deplorable,” Tammy Tomlins, Special Agent in Charge of the IRS - Criminal Investigation Newark Field Office, said. “IRS - Criminal Investigation and our law enforcement partners will continue to pursue those who knowingly violate the law and undermine the integrity of our federal healthcare system.”
“The additional pleas in this investigation demonstrate that HHS-OIG will continue to hold accountable individuals who exploit federal health care programs for their own greed,” Naomi Gruchacz, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), said. “Pharmacy employees who submit fraudulent claims to Medicare and Medicaid and bribe medical providers to induce prescriptions put health care benefits for vulnerable populations at risk.”
According to documents filed in this case and statements made in court:
The Prime Aid Pharmacies – now closed – operated as “specialty pharmacies” out of locations in Union City and the Bronx, New York. As specialty pharmacies, they processed expensive medications used to treat various conditions, including Hepatitis C, Crohn’s disease, and rheumatoid arthritis. Khaimov was a co-owner of Prime Aid Union City and the lead pharmacist of Prime Aid Bronx. Shtindler was Prime Aid Union City’s administrator. Sevumyants was Prime Aid Union City’s operations manager. Alex Fleyshmakher worked at Prime Aid Union City and was an on-paper owner of Prime Aid Bronx. His father, Igor Fleyshmakher, a co-owner of Prime Aid Union City, pleaded guilty to separate federal charges.
Initially, the Prime Aid Pharmacies obtained retail network agreements with several pharmacy benefits managers (PBM), which allowed them to receive reimbursement payments for prescription medications, including specialty medications. PBMs acted as intermediaries on behalf of Medicare, Medicaid, and other health benefit providers, so when one of the Prime Aid Pharmacies received a prescription, the pharmacy would typically submit a claim for reimbursement to the PBM that represented the beneficiary’s drug plan.
Starting in 2009, to obtain a higher volume of prescriptions, Khaimov, Sevumyants, Alex Fleyshmakher, and other Prime Aid employees paid bribes to doctors and doctors’ employees to induce the doctors and their staffs to steer prescriptions to the Prime Aid Pharmacies. The bribes included payments by cash, check, and wire transfers, as well as expensive meals and other things of value. Another method of bribery involved paying an employee to work inside a doctor’s office.
Prime Aid Union City – at the direction of Sevumyants, Shtindler, and Khaimov – also engaged in the pervasive and fraudulent practice of billing health benefit providers and PBMs for medications that were never provided to patients. While Prime Aid generally provided medications for initial prescriptions it received, it systematically billed for refills for those same medications without ever dispensing them to patients. According to the superseding indictment, from 2013 through 2017, Prime Aid Union City received at least $65 million in reimbursement payments from Medicare, Medicaid, and private health benefit providers for medications that Prime Aid Union City not only failed to give patients, but that Prime Aid Union City also never even ordered or had in stock at the pharmacy.
Over time, PBMs conducted routine audits of Prime Aid Union City and discovered its practice of billing but not dispensing medications. In response to these audits, Shtindler instructed Prime Aid employees to falsify records submitted to the PMBs. In addition, Sevumyants, with Shtindler’s knowledge and approval, forged shipping records of a private commercial shipping company to make it appear as if medications were shipped to the patients when, in fact, they were not.
The conspiracy to commit healthcare fraud count is punishable by a maximum of 10 years in prison. The conspiracy to pay illegal kickbacks is punishable by a maximum of five years in prison. Both counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for June 13, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; the N.J. Office of the Insurance Fraud Prosecutor, Medicaid Fraud Unit, under the direction of Interim Insurance Fraud Prosecutor Al Garcia, and the N.J. Office of the State Comptroller, under the direction of Acting Comptroller Kevin Walsh, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Martha K. Nye of the U.S. Attorney’s Office in Trenton and Jordann R. Conaboy and Aaron L. Webman of the Opioid Abuse Prevention and Enforcement Unit of the U.S. Attorney’s Office in Newark.
kahimov.sindictment.pdfPennsylvania Man Sentenced to 78 Months in Prison for Trafficking Stolen Medical Products from Battle Creek VA Medical CenterRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Steven William Anderson, Jr., 45, of Selinsgrove, PA, was sentenced to 78 months in prison for his role in a multi-year conspiracy to traffic stolen diabetic test strips from the Battle Creek Veterans Affairs (VA) Medical Center. During Anderson’s sentencing, Chief U.S. District Judge Hala Y. Jarbou emphasized the harm to the VA, veterans who rely on VA services, and the taxpayers.
“Anderson trafficked stolen goods while pocketing thousands of dollars in ill-gotten gain,” said U.S. Attorney Mark Totten. “Not only did Anderson steal from the government, but he diverted medical products intended for veterans who faithfully served our nation. Today’s sentence brings a measure of justice for taxpayers and those who serve the United States in uniform.”
In June 2023, a jury found Anderson guilty of all twelve charges against him following a three-day trial. In total, Anderson trafficked over 7,900 boxes of stolen diabetic test strips worth over $427,795. Anderson’s co-conspirators, Jennifer Robertson, 53, of Battle Creek, MI, and Michelle McAllister, 57, of Jerome, MI, pled guilty and were sentenced to prison last year.
The United States expects to receive a total recovery from Anderson of more than $1.6 million. He agreed to pay over $1.2 million to resolve the government’s civil claims arising from his misconduct. He was ordered to pay the full value of the stolen diabetic test strips he trafficked, $427,795.23, as part of his criminal judgment.
Robertson was employed at the Battle Creek VA Pharmacy, where she was responsible for ordering supplies for veterans in need of medical care. Beginning in June 2017, Robertson stole diabetic test strips from pharmacy inventory and arranged to meet McAllister and sell them for cash. McAllister in turn sold and shipped them to Anderson in Pennsylvania. Their scheme unraveled when Robertson was caught stealing in November 2019.
“Stolen medical products can present a health risk to those who buy and use them,” said Special Agent in Charge Ronne G. Malham, FDA Office of Criminal Investigations Chicago Field Office. “FDA will continue to protect the public by investigating and bringing to justice those who compromise the nation’s healthcare programs.”
“These crimes are especially troubling because they violated the integrity of the healthcare system that serves our nation’s veterans,” said Special Agent in Charge Gregory Billingsley, Central Field Office, Department of Veterans Affairs Office of the Inspector General. “Today’s sentences demonstrate the VA OIG’s commitment to holding accountable those who illegally enrich themselves at taxpayer expense.”
All three co-conspirators were convicted and agreed to civil penalty settlements under the Strengthening and Focusing Enforcement to Deter Organized Stealing and Enhance Safety Act (the “SAFE DOSES Act”), 18 U.S.C. § 670. Congress passed the SAFE DOSES Act in 2012 to combat the theft of medical products to protect the health and safety of patients. The law includes enhancements for members of the supply chain who knowingly traffic in stolen medical products. Because of his role as a distributor of medical products, Chief Judge Jarbou applied an enhancement to Anderson for his role in the conspiracy.
This investigation was led by the FDA’s Office of Criminal Investigations and the VA Office of Inspector General, with assistance from the United States Postal Inspection Service and the Battle Creek VA Police. The criminal case was prosecuted by Assistant U.S. Attorneys Patrick Castle and Andrew Hull. Assistant U.S. Attorney Ryan Cobb represented the United States in the civil settlement.
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Penn State Health Agrees to Pay More Than Eleven Million Dollars Following Its Voluntary Disclosure of Improper Billings Related to Medicare Annual Wellness Visit ServicesRead the Press Release
HARRISBURG, PA —The United States Attorney’s Office for the Middle District of Pennsylvania announced that Penn State Health (PSH), a multi-hospital health system, has agreed to pay $11,712,336 to resolve allegations of civil liability for submitting claims to Medicare for Annual Wellness Visit (AWV) services that violated Medicare rules and regulations.
According to the U.S. Attorney Gerard M. Karam, Penn State Health voluntarily disclosed that, between December 2015 and November 2022, PSH submitted claims to Medicare for Annual Wellness Visit services that were not supported by the medical record. After PSH discovered the problems, PSH took prompt corrective action and disclosed the matter to the United States Attorney’s Office.
This matter was handled by the Department of Health and Human Services (HHS), Office of Counsel to the Inspector General (OCIG), and Assistant U.S. Attorney Tamara Haken of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office for the Middle District of Pennsylvania.
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Penn Hills Resident Pleads Guilty to Narcotics ChargeRead the Press Release
PITTSBURGH, Pa. - A resident of Penn Hills, Pennsylvania, pleaded guilty on February 6, 2024, to one count of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
Jose Santiago Hernandez, 32, pleaded guilty to attempting to possess with intent to distribute five kilograms or more of a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance. Hernandez pleaded guilty before United States Senior District Judge Joy Flowers Conti.
In connection with the guilty plea, the Court was advised that, on June 28, 2021, Hernandez attempted to take possession of two U.S. postal parcels containing powder cocaine, a controlled substance under federal law. Combined, the parcels contained a collective weight of over five kilograms of cocaine.
Judge Conti scheduled sentencing for June 6, 2024. The law provides for a maximum total sentence of up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the prosecution of Hernandez.
Orlando Man Pleads Guilty to Narcotics and Weapon OffensesRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces that Jahroy Elijah Sackey (44, Orlando) has pleaded guilty to possession with the intent to distribute 100 grams or more of heroin and possessing a firearm and ammunition as a convicted felon. Sackey faces a minimum mandatory penalty of 5 years, up to 40 years, in federal prison. His sentencing hearing is not yet scheduled.
on December 7, 2018, Sackey drove his car to an Orlando gas station and sold 30 grams of heroin to “Individual 1.” On March 5, 2019, Sackey drove his car to the same gas station, and this time sold over 250 grams of heroin to “Individual 1.” Sackey was arrested shortly thereafter. A search of Sackey’s car revealed an FN Herstal pistol with 24 rounds of armor-piercing ammunition, as well as 156 grams of cocaine. Law enforcement searched Sackey’s house and recovered a Glock 30 pistol, ammunition, and more heroin.
At the time, Sackey had a previous felony conviction and had served time in federal prison for possessing cocaine with the intent to distribute it. As a convicted felon, Sackey is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Drug Enforcement Administration and the Winter Park Police Department. It is being 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.
Natick Man Found Guilty of Possession with Intent to Distribute FentanylRead the Press Release
BOSTON – A Natick man was convicted yesterday following a six-day jury trial in connection with fentanyl trafficking. During a search of the defendant’s apartment the body of a missing 24-year-old woman who had died of a drug overdose was discovered.
Rafael Ashworth, 29, was convicted of one count of possession with intent to distribute 40 grams or more of fentanyl and one count of possession with intent to distribute fentanyl. U.S. Senior District Court Judge William G. Young scheduled sentencing for April 30, 2024. Ashworth was indicted by a federal grand jury in December 2019 and subsequently charged in a superseding indictment in February 2021. He has remained in custody since his arrest in November 2019.
“The overwhelming overdose numbers associated with the opioid epidemic can blur the human devastation that is involved in every life cut short. This prosecution provided a vivid reminder of how deadly fentanyl is and the trail of broken hearts that are intertwined with overdose deaths,” said Acting United States Attorney Joshua S. Levy. “This defendant will now be held accountable for his role in pumping deadly narcotics onto our streets.”
“Massachusetts is in the midst of a devastating opioid crisis, as deaths from fentanyl soar. The DEA will continue to use every resource available to find drug traffickers, like Mr. Ashworth, who are contributing to the crisis,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “DEA’s top priority is combatting the opioid epidemic by working with our local, county, state and federal partners to bring to justice anyone who distributes this poison. Illegal drug distribution ravages the foundations of our communities so every time we take fentanyl off the streets, lives are saved.”
Police found a deceased woman in Ashworth’s apartment after receiving a report of an overdose death. Approximately 100 grams of a substance containing fentanyl, methamphetamine and heroin, counterfeit Xanax pills containing etizolam, an illegal benzodiazepine, a large metal press used for pressing counterfeit narcotic pills, kilograms of pill-making material and other paraphernalia associated with drug packaging and distribution were also located in the apartment.
The charge of possession with intent to distribute more than 40 grams of fentanyl carries a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.Acting U.S. Attorney Levy and DEA SAC Boyle made the announcement today. Special assistance was provided by the Natick Police Department and the Massachusetts State Police. Assistant U.S. Attorneys Leah Foley and Stephen Hassink of the Narcotics & Money Laundering Unit are prosecuting the case.
Montgomery County Man Sentenced to 90 Years in Federal Prison After Secretly Recording Children in Bathrooms and Sexually Abusing Children he Drugged with MethamphetamineRead the Press Release
INDIANAPOLIS- Stan Eugene Hayes Jr., 40, of Montgomery County, has been sentenced to 90 years in federal prison after pleading guilty to ten counts of sexual exploitation and attempted sexual exploitation of a child.
According to court documents and evidence introduced during the sentencing hearing, on October 13, 2022, Stan Hayes was on probation for a prior felony offense when Montgomery County Probation Officers, assisted by members of the Montgomery County Sheriff’s Office, conducted a probation search of his home. Officers found methamphetamine and printed sexual images of children in plain sight. Investigators later discovered that the defendant hid cameras in bathrooms and bedrooms in two different residences belonging to his friends.
Investigators searching his electronic devices recovered hundreds of explicit images and videos of six identified children using the toilet and bathing, created with hidden cameras. Law enforcement officers also recovered over 1,600 files created by the defendant depicting two other children being caused to engage in sexually explicit conduct, including with the defendant. The sexual abuse of these children took place in Tennessee in the early 2000’s. Investigators learned that the defendant gave these two victims methamphetamine.
Investigators also found captions that the defendant added to many of the abuse images describing in detail the sexual abuse that he inflicted on the children, where he also stated that he gave the children methamphetamine to cause them to “submit” to him and “break their will to put up any more fight.” As a result, one of the children ultimately became addicted to methamphetamine. Investigators recovered electronic evidence that the defendant had been keeping tabs on his Tennessee victims via Facebook, over a decade after he sexually abused them.
Investigators located approximately 350,000 images and videos of other child sexual abuse material that Hayes downloaded and traded online. Law enforcement officers also located a variety of other items relating to child sexual abuse, including: a collection of his victims’ underwear, a digital picture frame displaying child sexual abuse material, and a child-sized sex doll.
“No child should ever suffer the nightmares this man inflicted on so many,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “No prison sentence can undo the trauma these victims suffered, but I hope that the victims can take another step towards healing and closure knowing that the monster who hurt them so deeply will never hurt another child ever again.”
“There are no words that will help erase the memory of the horrific abuse these children suffered at the hands of this predator, but I hope this sentence gives them some solace in knowing the FBI and our law enforcement partners worked tirelessly to hold him accountable and ensure he will never again be free to inflict these horrible crimes on any other child,” said Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office.
The FBI investigated this case, with assistance from the Montgomery County Sheriff’s Office. The sentence was imposed by U.S. District Court Judge James P. Hanlon. Judge Hanlon also ordered that Hayes be supervised by the U.S. Probation Office for life following any release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorneys MaryAnn T. Mindrum and Kyle M. Sawa as well as former Assistant U.S. Attorney Kristina M. Korobov, who prosecuted this case.
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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
If you are a victim of child sexual exploitation, please contact your local police department. Resources for victims of child exploitation can be found on our website at https://www.justice.gov/usao-sdin/project-safe-childhood
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Missouri-Based Defense Department Contractor Admits FraudRead the Press Release
ST. LOUIS – A Defense Department contractor from St. Charles County, Missouri on Wednesday admitted illegally obtaining parts for the military overseas, undercutting domestic suppliers.
David Murar, 73, waived his right to indictment by a grand jury and pleaded guilty in U.S. District Court in St. Louis to one felony count of conspiracy to commit wire fraud. Murar admitted that from roughly April through October of 2022, he bid on and received at least nine U.S. government contracts by way of fraudulent misrepresentations, including that he would provide parts from domestic sources. Murar actually provided parts from China and other foreign countries. By doing so, Murar was able to underbid domestic suppliers. Murar broke the law by providing “military critical technical data,” which was restricted and protected information, to foreign individuals and/or entities. Murar also admitted to fraudulently using his wife’s name to gain a competitive advantage for one of his companies as a woman-owned small business, when he was really the actual owner and operator.
Murar fraudulently obtained contracts worth at least $333,465 for parts including nuts, bolts, washers, sleeves, and tools.
“Some of the parts that Murar’s companies supplied were designated as ‘critical,’ meaning they are essential to weapon system performance or the preservation of life or safety of personnel,” said U.S. Attorney Sayler A. Fleming. “Murar and his companies have already been suspended from government contracting and he has now pleaded guilty to a felony conspiracy charge. This case should serve as a stern warning to those whose actions could endanger members of the armed forces or who supply confidential data on military equipment to overseas entities.”
"The safety and readiness of the warfighter is the top priority of the Department of Defense Office of Inspector General's Defense Criminal Investigative Service (DCIS)," said Acting Special Agent-in-Charge Gregory P. Shilling of the DCIS Southwest Field Office. "We remain committed to safeguarding the integrity of the DoD supply chain, and we will pursue any company that supplies substandard products. Along with our partners, we are likewise committed to protecting sensitive technology and seek to hold those accountable who subvert export controls, exposing technology to adversaries."
“Knowingly removing export control markings and illegally transmitting export-controlled military technology data overseas to produce substandard components for vital DOD contracts, while purporting the same to be made in America, puts U.S. warfighters at risk and undermines our national security. BIS is committed to vigorously investigating illicit technology transfers and holding violators accountable,” said Aaron Tambrini, Special Agent in Charge of the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Chicago Field Office.
“We will work with law enforcement partners to aggressively pursue cases involving anyone who provides false information in government databases to fraudulently win government contracts,” said Special Agent in Charge Jeffrey Ryan of the Midwest Investigations Division of the U.S. General Services Administration Office of Inspector General. “Legitimate woman-owned businesses deserve a level playing field when competing for contract opportunities.”
“Product substitution is a serious threat to Air Force assets, and negatively impacts aircraft safety and readiness,” said Special Agent in Charge William A. Rouse, Air Force Office of Special Investigations, Procurement Fraud Detachment 4, Wright-Patterson Air Force Base.
Murar owned three businesses: Midwest Metals, St. Louis Loft Metals, and Florence Metals.
Murar signed agreements not to provide access to military critical technical data to anyone other than his employees or other eligible persons and comply with U.S. export control laws and regulations. He also agreed to comply with laws and other restrictions requiring certain items purchased by the Defense Department to be domestically sourced. But Murar admitted scheming to obtain parts from China, Hong Kong and other countries, and sent requests for quotes, including diagrams of necessary parts, to suppliers in those countries. He removed document distribution statements, destruction notices and export control and arms export control warnings from those documents before sending them, his plea agreement says.
Murar wired funds to obtain the parts, which were then manufactured and sent to his home in St. Charles. He discarded their original packaging and repackaged them to conceal their origin overseas, his plea says.
Murar is scheduled to be sentenced May 7. The charge carries a penalty of up to 20 years in prison, a fine of up to $250,000, or both prison and a fine.
The General Services Administration Office of Inspector General, the Department of Defense Office of Inspector General's Defense Criminal Investigative Service, the Department of Commerce’s Office of Export Enforcement, the U.S. Air Force Office of Special Investigations and the U.S. Army Criminal Investigation Division, Fraud Field Office investigated the case. Assistant U.S. Attorneys Matthew Drake and Cort VanOstran are prosecuting the case.
Middlesex County Man Admits Role in Gunpoint RobberyRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted his role in an attempted robbery in New Brunswick, New Jersey, where the victim was shot 14 times, U.S. Attorney Philip R. Sellinger announced.
Jonathan Rosales, 23, of New Brunswick, pleaded guilty today before U.S. District Judge Robert Kirsch in Trenton federal court to an indictment charging him with conspiracy to commit Hobbs Act robbery and attempted Hobbs Act robbery.
According to documents filed in this case and statements made in court:
On Dec. 28, 2020, Rosales, along with his accomplices, Saul Peralta and Giovanni Hoyos-Jaimes, attempted to rob the victim in New Brunswick. During the struggle, the victim was shot 14 times causing him to sustain serious injuries. Peralta and Hoyos-Jaimes previously pleaded guilty before Judge Kirsch for their involvement in this incident.
The conspiracy to commit Hobbs Act robbery and attempted Hobbs Act robbery counts each carry a maximum potential penalty of 20 years in prison. Each count also carries a fine of up to $250,000 fine, or twice the gain or loss from the offenses, whichever is greatest. Sentencing is scheduled for June 10, 2024.
U.S. Attorney Sellinger credited special agents of the FBI in Newark, under the direction of Special Agent in Charge James E. Dennehy; members of the New Brunswick Police Department, under the direction of Chief of Police Vincent Sabo; and members of the Middlesex County Prosecutor’s Office, under the leadership of Prosecutor Yolanda Ciccone, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the National Security Unit in Newark.
rosales.indictment.pdfMiddle Tennessee Man Charged with Unlawful Possession and Transfer of Firearm SilencerRead the Press Release
NASHVILLE – On February 5, 2024, Paul Faye Sr., 55, of Cunningham, Tennessee, was arrested after being charged with the unlawful possession and transfer of an unregistered firearm silencer, announced United States Attorney for the Middle District of Tennessee Henry C. Leventis.
The criminal complaint alleges that Faye spoke with an undercover FBI agent for months about a plan to travel to the United States – Mexico border to commit acts of violence against migrants and federal agents. In January 2024, Faye illegally transferred a silencer to an undercover agent with the FBI as they prepared to travel to the border to target migrants entering the United States.
After taking Faye into custody, law enforcement searched his property in Cunningham, Tennessee and recovered numerous firearms, including a short-barreled shotgun and a Springfield XD pistol, another firearm silencer, a militia patch, multiple jars of Tannerite, a brand of explosive targets that can be converted into improvised explosive devices, and hundreds of rounds of ammunition.
This case is being investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Josh Kurtzman is prosecuting the case.
A criminal complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Michigan City Man Sentenced to 84 Months in PrisonRead the Press Release
SOUTH BEND – Eugene Dawson, 42 years old, of Michigan City, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Dawson was sentenced to 84 months in prison followed by 3 years of supervised release.
According to documents in the case, between January and February 2023, Dawson brokered the sale of a 9mm firearm to an individual in exchange for $650 dollars. He also provided cocaine to that individual during the firearm transaction. On two other dates, additional drug transactions took place. A search warrant was later executed on Dawson’s home where additional cocaine and marijuana was found in an area accessible to children, under 18, who were in the home. Dawson was previously convicted of selling cocaine in LaPorte County Superior Court, a felony, and as such, was prohibited from possessing the firearm in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with assistance from the Michigan City Police Department, the LaPorte County Sheriff’s Department, and the LaPorte City Police Department. The case was prosecuted by Assistant United States Attorney Katelan M. Doyle.
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.
Miami woman sentenced to 70 months in prison after using COVID-19 funds to gamble and launder moneyRead the Press Release
MIAMI – On Feb. 5, a Miami woman was sentenced to 70 months in federal prison for money laundering of nearly $2 million in fraudulent COVID-19 relief loans, after previously pleading guilty in October 2023.
From April 2020 through April 2021, Maritza Morales Hermoso, 58, of Miami, Florida, and others, including co-defendant Javier Lazo Cabrera, conspired to defraud private lenders and the Small Business Administration (SBA) by filing false and fraudulent loan applications for multiple companies under both the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program, despite that several of those companies had no payroll and were not actively doing business at the time the loan applications were submitted. The applications were supported by fabricated payroll documents and inflated employee numbers. As a result of these false and fraudulent applications, a California-based SBA-approved PPP lender disbursed close to $2 million in fraudulent loan proceeds to bank accounts controlled by Hermoso.
Hermoso spent the proceeds from the fraudulent PPP and EIDL loans on gambling at South Florida casinos and various other personal expenses like cosmetic surgery, a Cadillac Escalade, and a Pomeranian puppy. Hermoso also disguised her misuse of funds by laundering the loan proceeds through multiple unrelated business accounts and withdrawing the money in cash.
Hermoso’s co-defendant, Cabrera, pleaded guilty to conspiracy to commit wire fraud in December 2023. Cabrera’s sentencing is scheduled for March 11 at 8:30 a.m. in Miami. Cabrera faces up to 20 years in federal prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Rafael Barros of the U.S. Secret Service (USSS), Miami Field Office, SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office announced the sentence.
USSS Miami, SBA OIG, Investigations Division’s Eastern Region, and FBI Miami investigated the case. Assistant U.S. Attorneys Joseph Egozi and Roger Cruz prosecuted the case. Assistant U.S. Attorneys Mitchell Evan Hyman is handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20360.
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Mexican Springs Man Pleads Guilty to Second Degree MurderRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Timothy Chischilly pleaded guilty in federal court to second degree murder. Chischilly, 53, of Mexican Springs, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
Chischilly and his co-defendant, Stacey Yellowhorse, were indicted by a federal grand jury on Aug. 11, 2020. According to publicly available court documents, Chischilly and Yellowhorse, his then girlfriend, invited Jane Doe to sleep over at Chilschilly’s house within the exterior boundaries of the Navajo Nation on the night of Jan. 23, 2020. During the night, Chischilly and Yellowhorse killed Jane Doe by nailing her to the floor, hammering a nail into her head, and bludgeoning her to death. Afterwards, Chischilly and Yellowhorse burned Jane Doe’s body and spread the remains at different locations.
Chischilly confessed to the murder to his family days later.
At sentencing, Chischilly faces up to life in prison.
Yellowhorse remains in custody pending trial, which is currently scheduled for March 25, 2024.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the Gallup Police Department. Assistant U.S. Attorneys Kimberly Brawley and Tavo Hall are prosecuting the case.
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Meth trafficking sends Billings man to prison for six yearsRead the Press Release
BILLINGS — A Billings man who admitted to bringing large quantities of methamphetamine from Denver, Colorado, for distribution and trading guns for meth was sentenced today to six years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Paul Andrew Guiot, 45, pleaded guilty in September 2023 to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in the summer of 2021, officers with the Eastern Montana High Intensity Drug Trafficking Area Task Force began investigating Guiot for drug trafficking. Guiot made trips to Denver alone and with his girlfriend, Jaide Alexander, of Billings, to buy drugs. In October 2021, officers served a state search warrant on a trailer where Guiot and Alexander lived. Officers located a small amount of narcotics and several loaded firearms. Guiot admitted to law enforcement that he and Alexander were importing large amounts of meth from Denver. He admitted he regularly traded guns for drugs in Montana and would then take the guns to Colorado to trade for more drugs. Alexander previously was sentenced to five years in prison, to be followed by five years of supervised release, for her guilty plea to possession with intent to distribute meth.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case. The Eastern Montana High Intensity Drug Trafficking Area Task Force, Drug Enforcement Administration and FBI investigated 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.
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Member of Drug Trafficking Organization Admits Fentanyl Analogue Distribution and Money LaunderingRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted his role as a member of a drug trafficking organization responsible for the importation and distribution of hundreds of kilograms of fentanyl analogues, U.S. Attorney Philip R. Sellinger announced.
Sean Tighe, 48, of Kearny, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to a second superseding indictment charging him with drug trafficking conspiracy and international promotional money laundering conspiracy.
According to documents filed in this case and statements made in court:
Tighe admitted that from March 2014 through September 2020, he and others agreed to import and distribute various controlled substances and controlled substance analogues, including fentanyl, fentanyl analogues, synthetic cathinones, also known as “bath salts,” such as ethylone, and ketamine. Members of the conspiracy placed orders with a source in China and agreed to distribute, and did distribute, the controlled substances and analogues in New Jersey. Tighe admitted that other members of the conspiracy provided him with controlled substances and analogues pressed into small pills for distribution.
The defendants allegedly paid for the drugs they imported by sending, or recruiting others to send, international wire payments to the Chinese sources of supply. Tighe admitted to having been responsible for transferring at least $14,000 to China from April 2014 to June 2014.
The count of drug trafficking conspiracy carries a mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison and a $10 million fine. The count of international promotional money laundering conspiracy carries a maximum potential penalty of 20 years in prison and a $500,000 fine. Sentencing is scheduled for Nov. 19, 2024.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to today’s guilty plea. He also thanked HSI in Philadelphia, the FBI – Newark Division, U.S. Postal Inspection Service in Newark, IRS-Criminal Investigation, the Newark Police Department, and the Essex County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek of the Criminal Division in Newark and Trial Attorneys Stephen Sola and Alexander Hasapidis-Sferra of the Justice Department’s Money Laundering and Asset Recovery Section. The case is being prosecuted jointly by the United States Attorney’s Office, District of New Jersey and the Money Laundering and Asset Recovery Section (MLARS) of the United States Department of Justice.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
tighe.ssindictment.pdfMember of Criminal Organization Pleads Guilty to Deadly Kidnapping in El PasoRead the Press Release
EL PASO, Texas – An El Paso man who served as a soldier in a transnational criminal organization (TCO) pleaded guilty in a federal court in El Paso to kidnapping resulting in death.
According to court documents, Armando Leonardo Moreno aka Cholo, 21, conspired with other TCO members on or around Sept. 13, 2021, to kidnap a subject from an El Paso stash house. The kidnappers drove the subject to another address, dragged him out of the vehicle and beat him in the front yard of the home before taking him inside and beating him further. On Sept. 16, 2021, the subject was found deceased in Las Cruces, New Mexico, with multiple gunshot and stab wounds.
Moreno faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Codefendant Michelle Karen Avila was previously sentenced to 120 months in prison, while codefendant Ruben Pimentel was sentenced to 188 months. Codefendants Alberto Rodriguez and Ricardo Matthew Gutierrez remain in federal custody awaiting sentencing.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
Homeland Security Investigations, the El Paso Police Department, the New Mexico State Police, and the Texas Department of Public Safety are investigating the case.
Assistant U.S. Attorneys Sarah Valenzuela and Ian Hanna are prosecuting the case.
These charges resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the Western District of Texas is part of the JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security. JTFA is comprised of detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California. Dedicated support is also provided by numerous components of the Criminal Division that are part of JTFA, led by HRSP, and supported by ODPAT, the Narcotic and Dangerous Drug Section, the Money Laundering and Asset Recovery Section, the Office of Enforcement Operations, OIA, and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration (DEA), and other partners. To date, JTFA’s work has resulted in over 270 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; over 210 convictions; significant jail sentences imposed; and forfeitures of substantial assets.
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McCook Man Sentenced to 31 Years for Production of Child PornographyRead the Press Release
United States Attorney Susan Lehr announced that Jeron Messersmith, 29, formerly of McCook, Nebraska, was sentenced on February 7, 2024, in federal court in Lincoln, Nebraska, for attempted production of child pornography and production of child pornography. Senior United States District Judge John M. Gerrard sentenced Messersmith to 372 months’ imprisonment. There is no parole in the federal system. After Messersmith’s release from prison, he will begin a 20-year term of supervised release. Additionally, Messersmith was ordered to pay $9,000 in restitution.
In February of 2021, Messersmith’s cellphone was downloaded and reviewed as part of a child sex assault investigation. While reviewing the phone, law enforcement discovered child pornography. Law enforcement additionally found numerous text messages and social media conversations between Messersmith and several minor females. In the conversations, Messersmith often requested sexually explicit files from each minor and engaged in romantic and sexual conversations. Photos or videos of each of the minor victims were located on Messersmith’s phone. Pursuant to some of the messages, Messersmith had attempted to travel to another state to engage in sexual relations with one of the minor females.
This case was investigated by the McCook Police Department and 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. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
McAlester Resident Pleads Guilty to Sexual Exploitation of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Amanda Lynn Howerton, age 40, of McAlester, Oklahoma, entered a guilty plea to one count of Sexual Exploitation of a Minor/Use of a Child to Produce a Visual Depiction.
The Indictment alleged that on January 22, 2023, Howerton created a visual depiction of a minor engaged in sexually explicit conduct for the purposes of transmitting that image over the internet.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Judge Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Howerton was remanded to the custody of the United States Marshal pending sentencing.
Assistant United States Attorney Morgan Muzljakovich represented the United States.
Massachusetts Commercial Fisherman Pleads Guilty to Tax EvasionRead the Press Release
A Massachusetts man pleaded guilty today to evading taxes on income he earned as a commercial fisherman.
According to court documents and statements made in court, Rodolfo Membreno, of Fall River, worked as a commercial fisherman and deckhand operating primarily out of the Port of New Bedford. Membreno did not report over $1.3 million in income between 2013 and 2021. For 2013 to 2019, and again for 2021, Membreno did not file federal income tax returns or pay taxes. In 2020, he filed a false tax return that overstated business expenses. For 2012, Membreno filed a tax return but did not pay the tax that was due. To conceal his income, Membreno regularly cashed his paychecks from the fishing companies and used the cash to pay for personal expenses. In total, he caused a tax loss to the IRS of approximately $293,118.
Membreno is scheduled to be sentenced on May 15 and faces a maximum sentence of five years in prison. The defendant also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Ezra Spiro and Acting Chief John Kane of the Justice Department’s Tax Division and Assistant U.S. Attorney Victor Wild for the District of Massachusetts are prosecuting the case.
Man Pleads Guilty to Opioid Distribution and Money Laundering ConspiracyRead the Press Release
A New Jersey man pleaded guilty today to drug trafficking and money laundering conspiracy charges.
According to court documents, from March 2014 to September 2020, Sean Tighe, 48, of Kearny, conspired to distribute and to possess with intent to distribute over nine kilograms of furanyl fentanyl and nine kilograms of 4-fluoroisobutyryl fentanylsynthetic cathinones (also known as bath salts), including ethylone; and ketamine. In addition, from March 2014 to May 2019, Tighe conspired to launder funds. In furtherance of the conspiracy, from April 2014 to June 2014, Tighe sent five wire payments from the United States to China to purchase controlled substances and/or controlled substance analogues.
Tighe pleaded guilty to conspiracy to distribute controlled substances and controlled substance analogues, including 100 grams or more of fentanyl analogues, synthetic cathinones, and ketamine, and conspiracy to launder monetary instruments. He is scheduled to be sentenced on Nov. 19. If the court accepts the guilty plea, the government and Tighe will agree to a sentence of approximately 12 to 15 years in prison, at least five years of supervised release for the drug conspiracy count, and a maximum of three years of supervised release for the money laundering conspiracy count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Philip R. Sellinger for the District of New Jersey, and Special Agent in Charge Michael Alfonso of Homeland Security Investigations (HSI) Newark made the announcement.
HSI Newark is investigating the case.
Trial Attorney Alexander Hasapidis-Sferra and Money Laundering and Forfeiture Unit Chief Stephen Sola of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Sammi Malek for the District of New Jersey are prosecuting the case. Special Financial Investigations Unit Financial Investigator Kathryn Montemorra provided significant assistance.
Man Convicted of $300M Securities Price Manipulation and Wire Fraud Cryptocurrency ConspiracyRead the Press Release
A federal jury in the Southern District of Florida convicted a Pennsylvania man today for manipulating the price of a security and scheming to defraud investors in connection with the purchase of Hydrogen Technology’s cryptocurrency, HYDRO.
According to court documents and evidence presented at trial, Shane Hampton, 32, of Philadelphia, served as the head of financial engineering at Hydrogen Technology and orchestrated a months-long scheme to manipulate the price of HYDRO. Hampton and his co-conspirators hired an outside firm, Moonwalkers Trading Limited of South Africa, to run an automated trading system or “bot” to manipulate the price of HYDRO on a cryptocurrency exchange in the United States by flooding the market with fake and fraudulent orders from October 2018 to April 2019.
Hampton and his co-conspirators executed approximately $7 million in “wash trades” and placed over $300 million in “spoof trades” for HYDRO through the bot. Collectively, these spoof and wash trades were designed to, and did, fraudulently induce retail investors to purchase HYDRO so that Hampton and his co-conspirators could sell Hydrogen Technology’s own holdings of HYDRO for over $1.5 million over the course of a seven-month period.
The jury convicted Hampton of conspiracy to commit securities price manipulation and conspiracy to commit wire fraud. He is scheduled to be sentenced on April 29 and faces a maximum penalty of five years in prison for the conspiracy to commit securities price manipulation conviction and 20 years in prison for the conspiracy to commit wire fraud conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Hampton is the fourth defendant to be convicted as part of the case. Michael Kane, the CEO of Hydrogen Technology, pleaded guilty to the same charges and is awaiting sentencing; Andrew Chorlian, an engineer at Hydrogen Technology, also pleaded guilty to conspiracy to commit securities price manipulation and wire fraud and is awaiting sentencing; and Tyler Ostern, the CEO of Moonwalkers Trading Limited, also pleaded guilty to conspiracy to commit securities price manipulation and wire fraud and has been sentenced to two years in prison.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, and Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division made the announcement.
The FBI Miami Field Office investigated the case. Former Assistant U.S. Attorney Eric Morales for the Southern District of Florida assisted in the investigation of the case.
Trial Attorney Andrew Jaco and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section are prosecuting the case.
Man Convicted of Tampering and Vandalism at Sleeping Bear Dunes National LakeshoreRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Andrew Blair Howard, 63, of Frankfort, Michigan was convicted of tampering and vandalism at Sleeping Bear Dunes National Lakeshore in connection with an August 15, 2022, diversion of the Platte River. Both crimes are federal misdemeanors.
“The Sleeping Bear Dunes National Lakeshore is a Michigan jewel,” said U.S. Attorney Mark Totten. “Every year countless visitors enjoy its pristine waters, towering sand dunes, and rolling forests. Mr. Howard had a policy dispute with the National Park Service and took matters into his own hands, breaking the law rather than using lawful means to advocate for his position. His actions resulted in significant financial and ecological harm and altered the landscape so many enjoyed. Today and always my office commits to protect Michigan’s natural treasures.”
The Platte River flows through the Sleeping Bear Dunes National Lakeshore before it empties into Lake Michigan. In the summer, paddlers, tube floaters, and beachgoers drift down its meandering waters. In August 2022, National Park Service law enforcement officers investigated reports of a diversion of the Platte River near its mouth. On August 15, 2022, Howard used a shovel to dig sediment and rocks from the river basin and stacked large rocks on a dam to divert the river’s natural water flow toward a newly created channel out to Lake Michigan, contrary to a decision by the National Park Service to let the river follow its natural course. The diversion created an unauthorized access for large boats to enter Platte Bay. Within days, the natural power of the water and the dam caused the new channel to reach approximately 200 feet wide.
The following aerial photograph on the left, taken in May of 2022, shows the natural flow of the Platte River running parallel to Lake Michigan. The photograph on the right shows the same area approximately 3 days after the diversion, with the channel emptying directly into Lake Michigan.
May 2022 August 2022In a bench trial, federal Magistrate Judge Ray Kent convicted Howard of two counts: one count of tampering (Count 1) and one count of vandalism (Count 2), under Title 36 C.F.R. § 2.31(a)(2) and (3) respectively, which provides for the proper use and protection of natural resources within areas under the jurisdiction of the National Park Service. In so ruling, Judge Kent held that the defendant “intended to and in fact did divert the flow of the Platte River into Platte Bay.”
“The National Park Service appreciates the support of the U.S. Attorney’s Office in enforcing the laws that help protect this place for future generations.” said Superintendent Scott Tucker. “Sleeping Bear Dunes National Lakeshore was created in 1970 to preserve and protect this spectacular place.”
The National Park Service investigated this case. Assistant United States Attorney Lauren F. Biksacky prosecuted it on behalf of the United States.
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Man Charged with Abusive Sexual Contact with Children Under 12Read the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Tyler Chinana was arraigned in federal court on an indictment charging him with two counts of abusive sexual contact. Chinana, 34, of Jemez Pueblo, and an enrolled member of the Jemez Pueblo, will remain on conditions of release in the third-party custody of a halfway house pending trial, which has not been scheduled.
According to court records, between Jan. 1 and Dec. 31, 2012, Chinana engaged in sexual contact with Jane Doe 1, a child who had not then attained the age of 12 years. Then, between Nov. 4 and Nov. 6, 2022, Chinana engaged in sexual contact with Jane Doe 2, a child who had not then attained the age of 12 years.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Chinana faces up to life in prison.
The FBI Albuquerque Field Office investigated this case with the assistance of the Jemez Pueblo Police Department. Assistant U.S. Attorney Meg Tomlinson is prosecuting the case.
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Man Admits Burglarizing Missouri Post Office Twice in Clown MaskRead the Press Release
ST. LOUIS – A man admitted breaking into a Franklin County, Missouri post office and twice stealing packages while masked.
Scott Weatherby, 28, pleaded guilty in U.S. District Court in St. Louis to two counts of burglary of a post office. He admitted breaking into the U.S. Post Office in St. Albans, in northeastern Franklin County, on August 6, 2023. Weatherby was wearing a clown mask at the time he stole packages and again the next day when he returned. After he was identified as a suspect, investigators went to an address associated with him in Pacific, Missouri. Weatherby fled out of the back door of the home but was caught after a brief chase. A clown mask and multiple stolen packages were found in his vehicle.
Weatherby is scheduled to be sentenced May 7. Each count is punishable by up to five years in prison, a fine of up to $250,000, or both prison and a fine.
The U.S. Postal Inspection Service, the Franklin County Sheriff’s Office and the Jefferson County Sheriff’s Office investigated the case. Assistant U.S. Attorney Nicholas Lake is prosecuting the case.
Malden Man Who Robbed Market with Airsoft Gun Pleads GuiltyRead the Press Release
BOSTON – A Malden man pleaded guilty today in federal court in Boston to robbing a local market using an airsoft gun in December 2021.
John Schurko, 58, pleaded guilty to one count of interference with commerce by robbery. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 15, 2024. Schurko was charged by criminal complaint in December 2021 and subsequently indicted by a federal grand jury in March 2022.
On Dec. 12, 2021 at approximately 8 p.m., Schurko entered the Harvard Market in Malden, displayed what appeared to be a black handgun, went behind the counter and demanded money from the clerk. On Dec. 16, 2021, Schurko’s getaway vehicle was located in a hotel parking lot in Medford where he was subsequently arrested. A search of the vehicle recovered, among other things, a black Airsoft gun that resembled a real firearm.
The charge of interference with commerce by robbery provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; Malden Police Chief Glenn Cronin; Medford Police Chief Jack Buckley; Billerica Police Chief Roy Frost; and Woburn Police Chief Robert F. Rufo Jr. made the announcement. Assistant U.S. Attorney Robert E. Richardson of the Major Crimes Unit is prosecuting the case.
- Lexington Man Sentenced for Transporting Child Pornography
Lead of 7 defendants in multi-state narcotics, money laundering conspiracies case sentenced to 16 years in prisonRead the Press Release
COLUMBUS, Ohio – The lead defendant charged in a narcotics and money laundering conspiracies case was sentenced in U.S. District Court today. Seven defendants are responsible for conspiring to traffic thousands of oxycodone pills and more than three kilograms of methamphetamine into Ohio from Florida and California, and for conspiring to launder more than $2.5 million in drug proceeds.
Michael J. Moore, 47, of Inglewood, California, was sentenced to 192 months in prison for conspiring to launder the proceeds of methamphetamine and oxycodone trafficking and for conspiring to possess with intent to distribute the drugs.
According to court documents, from at least 2015 through at least 2018, Moore and six women conspired to distribute and possess with intent to distribute methamphetamine and oxycodone. The defendants illegally diverted and transported oxycodone pills from Florida to Ohio and from California to Ohio. They trafficked methamphetamine from California to Ohio.
For example, Moore obtained fraudulent oxycodone prescriptions in Florida on approximately 10 occasions between 2015 and 2016, allowing him to obtain more than 1,000 pills.
Lower-level members of the conspiracy fraudulently obtained a substantial number of pills, providing them to higher-level members and keeping the balance of the pills as payment to feed their addictions.
In total, the group obtained and distributed between 5,656 and 100,000 30-milligram oxycodone pills, which were then sold for between $20 and $30 per pill.
Moore was involved in the shipping and distribution of at least 3,114 grams of methamphetamine that was approximately 98 percent pure.
Moore and the others conspired to launder the drug proceeds by opening bank accounts at several financial institutions, making money transfers, and concealing cash and flying it on commercial flights.
The other defendants convicted in this case include:
Name
Age
City
Sentence Imposed
Mykell Reeneesha Uneek Hawes
33
Cerritos, California
132 months in prison
Brandy Monique Casey
44
Inglewood, California
30 months in prison
Marisa A. Wallace
29
Columbus, Ohio
72 months in prison
Angela N. Faber
41
Reynoldsburg, Ohio
48 months in prison
Heather M. Russell
36
Columbus, Ohio
48 months in prison
Janette M. Breckenridge
33
Columbus, Ohio
48 months in prison
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Karen Wingerd, Acting Special Agent in Charge, Internal Revenue Service - Criminal Investigation (IRS-CI) announced the sentence imposed today by U.S. District Judge Michael H. Watson. The U.S. Postal Inspection Service (USPIS), Drug Enforcement Administration (DEA) and Whitehall Police Department assisted in the investigation. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
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La Crosse County Man Sentenced to 5 Years for Trafficking MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Alfredo Almanza, 43, La Crosse, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 5 years in federal prison for possessing 50 grams or more of methamphetamine for distribution and maintaining a drug trafficking place. Almanza pleaded guilty to these charges on October 31, 2023.
Law enforcement began investigating Almanza for drug trafficking after receiving complaints from citizens that he was selling methamphetamine out of his home in La Crosse County. On March 15, 2023, law enforcement officers followed a known drug trafficker as he drove to the alley behind Almanza’s home, then exit his vehicle and return a short time later. Law enforcement stopped and searched the vehicle as it left Almanza’s house and found 95 grams of methamphetamine. GPS records indicated that this drug trafficker had been at Almanza’s residence four other times in the month of March.
On March 22, 2023, law enforcement executed a search warrant at Almanza’s home. They found approximately 284 grams of methamphetamine along with drug trafficking paraphernalia. An examination of Almanza’s cell phone messages showed communications involving the sale of methamphetamine between Almanza and other individuals.
At sentencing, Judge Conley noted that, despite a prior conviction for methamphetamine distribution, Almanza continued to sell methamphetamine, which endangered others. In ordering this sentence, Judge Conley further noted that this prison term would be longer that any previous sentence Almanza had served and encouraged him to use the time productively, including by engaging in available drug treatment programs.
The charges against Almanza were the result of an investigation conducted by the La Crosse and Tomah Police Departments and the Monroe County Sheriff’s Office. Assistant U.S. Attorneys Kathryn Ginsberg and Colleen Lennon prosecuted this case.
Kearney Man Sentenced for Receiving and Possessing Child PornographyRead the Press Release
United States Attorney Susan Lehr announced that Royce Love, 45, of Kearney, Nebraska, was sentenced on February 2, 2024, in federal court in Lincoln, Nebraska, for receipt of child pornography. Senior United States District Judge John M. Gerrard sentenced Love to 84 months’ imprisonment. There is no parole in the federal system. After Love is released from prison, he will begin an 8-year term of supervised release.
Love was contacted online by a vigilante group who posed as a minor female. A conversation ensued in which the group attempted to get Love to agree to meet with the minor female for a sex act. Ultimately, Love stopped communicating with the account and blocked it without ever agreeing to meet. The group then confronted Love in person at his residence and called police.
Love agreed to allow to law enforcement to search his phone. When the search was performed, police discovered multiple images of child pornography involving minor females. Police contacted Love again about a week later when the search was complete. After being advised of the Miranda warnings, Love was asked about the images. Love said he could not remember exactly where he had obtained the images, but he did acknowledge receiving them over the internet.
Additional electronic devices were seized after the second interview. When those devices were searched, police located additional images depicting children engaging in sexually explicit conduct.
This case was investigated by the Kearney Police Department and 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 www.justice.gov/psc.
Justice Department Secures Agreement with Staffing Company to Resolve Claims of Employment DiscriminationRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with Latitude Inc. (Latitude), a staffing company in Hanover, Maryland. The agreement resolves the department’s determination that Latitude violated the Immigration and Nationality Act (INA) by discriminating against certain non-U.S. citizens with permission to work in the United States and excluding them from job opportunities based on their citizenship status.
“Companies cannot unlawfully exclude all non-U.S. citizens with permission to work in the United States from job opportunities based on their citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold accountable those who engage in such behavior that violates our nation’s federal civil rights laws.”
The department’s investigation determined that, from at least April 2022 through July 2023, Latitude refused to refer, recruit or hire any non-U.S. citizens for several positions with a client company that had requested the restriction without any legal basis. These actions harmed lawful permanent resident workers, non-citizen national workers and workers who have been granted asylum or refugee status by unlawfully deterring them from applying to and failing to advance those who did apply for further consideration in the hiring process.
Under the terms of the settlement, Latitude will train its personnel on the INA’s requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements. Latitude will pay civil penalties to the United States.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute generally prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify), or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected] or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Justice Department Gathers Stakeholders, Advocates for Inaugural National Elder Justice Law Enforcement SummitRead the Press Release
The Justice Department today convened the National Elder Justice Law Enforcement Summit, which represents the first national gathering of local, state, and federal law enforcement to focus on efforts to combat elder abuse, neglect, financial exploitation, and fraud.
During the two-day event, held at the U.S. Securities and Exchange Commission (SEC)’s headquarters in Washington, D.C., representatives from local, state, and national law enforcement organizations from around the country will join federal law enforcement representatives to discuss and learn about the various forms of elder abuse; identify promising practices, resources and tools available to state and local law enforcement; and foster greater collaboration between law enforcement and elder justice professionals to prevent, identify, and address elder abuse in their communities. Some of the specific topics to be addressed will include how dementia may impact elder abuse investigations; how to overcome challenges associated with investigating financial exploitation; how trauma impacts older victims and the importance of connecting older victims with services; and the unique challenge of investigating abuse and neglect committed against nursing home residents.
“Tragically, millions of older Americans suffer from some form of elder abuse each year,” said Acting Associate Attorney General Benjamin C. Mizer, who opened the event. “While the pandemic brought to light some of the most egregious elder abuses, we know that far too many cases still go unreported.”
In his remarks, the Acting Associate Attorney General emphasized the value of collaboration among all levels of law enforcement, adding: “While the Department is steadfast in our commitment to pursue elder justice, it’s clear that none of us can do this work alone. You are valued partners in the Department’s fight against elder abuse and fraud, and we continue to reap the benefits of working collaboratively with you.” He reiterated the Department’s commitment to supporting the critical work of state and local partners.
In October 2023, the Justice Department released its fifth Annual Justice Report to Congress, highlighting its ongoing efforts to root out heinous activity that strategically targets and exploits vulnerable, older populations. During the period covered by the report of July 2022 through June 2023, the Department pursued nearly 300 criminal and civil actions against more than 650 defendants who collectively stole more than $1.5 billion from over 2.4 million victims. Also noted in the report, the Department has returned hundreds of millions of dollars to victims of elder fraud schemes, while helping to freeze millions of dollars for other older victims before their funds were transferred to fraudsters. The Department also supported over 5,000 victim assistance organizations that provided services (including individual advocacy, crisis intervention, civil legal assistance, transportation, and emergency shelter) to over 240,000 victims aged 60 and older.
The Summit was organized by the Justice Department’s Elder Justice Initiative, with support from the Office for Victims of Crime and the Office of Community Orienting Policing Services. The event was also supported by members of the Elder Justice Coordinating Council, including the Securities and Exchange Commission, the Federal Trade Commission, the Consumer Financial Protection Bureau, and the Department of Health and Human Services Administration for Community Living.
To report elder financial fraud, call the National Elder Fraud Hotline, 1-833-FRAUD-11 (1-833-372-8311). For more information on the Department’s elder justice activities, visit the Department’s Elder Justice Website, where information on the Summit also is available.
Justice Department Announces Charges and Arrest in Two Separate Illicit Technology Transfer Schemes to Benefit Governments of China and IranRead the Press Release
In two separate cases out of U.S. Attorneys’ Offices on opposite coasts, several individuals are charged – one of whom was arrested yesterday – in connection with sophisticated schemes to transfer sensitive technology, goods, and information for the benefit of hostile foreign adversaries, in violation of U.S. law.
In the Eastern District of New York, two Iranian nationals are charged with conspiring to export equipment used in the aerospace industry to the Government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA), in connection with an alleged conspiracy to illegally export U.S. goods and technology without the required licenses.
In the Central District of California, a man was arrested for allegedly stealing trade secrets developed for use by the U.S. government to detect nuclear missile launches and track ballistic and hypersonic missiles.
“One year ago, I launched the Disruptive Technology Strike Force to strike back against adversaries trying to steal our nation’s most powerful technology and use it against us,” said Deputy Attorney General Lisa O. Monaco. “Since then, working with our partners at the Commerce Department, we have arrested more than a dozen corporate executives, engineers, distributors, and other high-profile targets on charges that include sanctions and export control violations, and other offenses involving the unlawful transfer of sensitive information and technology. Today’s charges against three additional defendants for seeking to illegally transfer U.S. software and semiconductor technology with military applications to benefit Iran and China highlight the critical importance of our fight against this national security threat.”
“The FBI continues to take aggressive investigative action to hold accountable those who seek to violate sanctions and illegally provide sensitive technology to foreign adversaries,” said FBI Deputy Director Paul Abbate. “Stealing U.S. trade secrets and technology, especially when it can be used for military purposes, will not be tolerated. We will continue to work closely with our partners in the Disruptive Technology Strike Force to stop such activity and protect the national security of the United States.”
“In its first year, the Disruptive Technology Strike Force has strengthened enforcement and disrupted numerous criminal schemes to smuggle highly-sensitive technology that foreign adversaries wield to advance their military and other malign agendas,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The cases announced today underscore the commitment of the Justice Department and our partners to disrupt illegal efforts to siphon off U.S. ingenuity and to safeguard American security and innovation. “
“In the just one year since the launch of the Disruptive Technology Strike Force, we’ve stood up over a dozen local investigative cells, opened scores of investigations, and brought criminal charges against more than a dozen individuals and companies associated with nation-state adversaries,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Today’s announcement provides the latest example of our unwavering mission — keeping our country’s most sensitive technologies out of the world’s most dangerous hands.”
United States v. Bazzazi (EDNY)
Note: View a copy of the indictment here.According to court documents, between January 2008 and August 2019, Abolfazi Bazzazi, 79, of Iran, and his son Mohammad Resa Bazzazi, 43, of Iran, and their co-conspirators sought to evade U.S. sanctions and export laws by working to procure goods and technology, including aeronautical ground support equipment, ultraviolet flame detectors, and firefighting equipment, from U.S. companies for end users in Iran, including the Government of Iran, without obtaining the required licenses or other authorization from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).
“As alleged, the Bazzazis devised an intricate scheme to evade U.S. export laws in obtaining U.S. equipment and technology to be exported to Iran and for the Government of Iran which has been designated by the United States government as a state sponsor of terrorism,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendants allegedly attempted to obtain commercial and military aircraft items from multiple U.S. companies that supply the military, aerospace, and firefighting industries. These charges demonstrate the resolve of this office and the Department of Justice to prosecute those who seek to aid the Government of Iran, in violation of U.S. sanctions.”
According to the indictment, the defendants sought to obtain components that could be used by Iran’s aerospace industry. Additionally, they disguised the final destination of U.S. goods by attempting to forward them through intermediaries in Europe and elsewhere. As alleged, the Bazzazis acted on behalf of the Government of Iran.
The Bazzazis are charged with conspiracy to violate the IEEPA, which carries a maximum penalty of 20 years in prison; and smuggling goods from the United States, which carries a maximum penalty of 10 years in prison. The defendants remain at large.
The Commerce Department’s Bureau of Industry and Security (BIS) and FBI are investigating the case.
Assistant U.S. Attorneys Francisco J. Navarro, Jonathan P. Lax, Nomi D. Berenson, and Adam Amir for the Eastern District of New York are prosecuting the case, with assistance provided by Trial Attorney Adam Small of the National Security Division’s Counterintelligence and Export Control Section.
United States v. Gong (CDCA)
Note: View a copy of the complaint here.As alleged, Chenguang Gong, 57, of San Jose, California, was arrested yesterday in San Jose and is expected to make his initial appearance today in the Northern District of California. Gong is a native of China and became a United States citizen in 2011.
Gong is charged in a criminal complaint with theft of trade secrets. According to court documents, Gong transferred more than 3,600 files from the research and development company where he worked — identified in court documents as the victim company — to personal storage devices during his brief tenure with the company last year. The files Gong allegedly transferred include blueprints for sophisticated infrared sensors designed for use in space-based systems to detect nuclear missile launches and track ballistic and hypersonic missiles, and blueprints for sensors designed to enable U.S. military aircraft to detect incoming heat-seeking missiles and take countermeasures, including by jamming the missiles’ infrared tracking ability. Some of these files were later found on storage devices seized from Gong’s temporary residence in Thousand Oaks, according to the affidavit in support of the complaint.
Together with the U.S. government and others, the affidavit states, the victim company “has invested tens of millions each year for more than seven years to develop the technology,” and it “would be extremely damaging economically” to the victim company if the technology were obtained by its competitors and “dangerous to U.S. national security if obtained by international actors.”
“We will do everything to protect our nation’s security, including from foreign threats,” said U.S. Attorney Martin Estrada for the Central District of California. “Mr. Gong, who had previously sought to provide the People’s Republic of China with information to aid its military, stole sensitive and confidential information related to detecting nuclear missile launches and tracking ballistic and hypersonic missiles. We know that foreign actors, including the PRC, are actively seeking to steal our technology, but we will remain vigilant against this threat remain vigilant against this threat by safeguarding the innovations of American businesses and researchers.”
“The FBI is committed to protecting our nation’s critical technologies and to pursuing those who look to steal trade secret information for their benefit or for the benefit of foreign adversaries,” said Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office. “The theft of trade secrets, especially of sensitive military technology, undermines our national security, erodes U.S. competitiveness in the global market, and harms the businesses and individuals who have invested time, resources, and creativity into developing innovative technologies. Our actions today send a strong message that anyone willing to steal proprietary information from U.S. businesses will face consequences in the criminal justice system.”
As alleged in the affidavit, the victim company hired Gong in January 2023 to work at one its laboratories as an application-specific integrated circuit design manager responsible for the design, development and verification of its infrared sensors. Beginning on approximately March 30, 2023, and continuing until his termination on April 26, 2023, Gong transferred thousands of files from his work laptop to three personal storage devices, including hundreds of files after he had accepted a job on April 5, 2023, at one of the victim company’s main competitors.
Many of the files Gong allegedly transferred contained proprietary and trade secret information related to the development and design of a readout integrated circuit that allows space-based systems to detect missile launches and track ballistic and hypersonic missiles while providing resilience and a readout integrated circuit that allows aircraft to track incoming threats in low visibility environments. Gong also allegedly transferred trade secret files relating to the development of “next generation” sensors capable of detecting low observable targets while demonstrating increased survivability in space, as well as the blueprints for the mechanical assemblies used to house and cryogenically cool the victim company’s sensors. This information was among the victim company’s most important trade secrets worth hundreds of millions of dollars, according to the complaint, and many of the files were marked “[VICTIM COMPANY] PROPRIETARY,” “FOR OFFICIAL USE ONLY,” “PROPRIETARY INFORMATION,” and “EXPORT CONTROLLED.”
During the investigation, the affidavit states, the FBI discovered that, between approximately 2014 and 2022 while employed at several major technology companies in the United States, “Gong submitted numerous applications to ‘Talent Programs’ administered by the People’s Republic of China government.” The affidavit explains that “the PRC has established talent programs through which it identifies individuals located outside the PRC who have expert skills, abilities, and knowledge that would aid in transforming the PRC’s economy, including its military capabilities.” To entice applicants, “the PRC government rewards Talent Recruits with significant financial and social incentives,” noting that the “salaries often meet or exceed salaries the Talent Recruits draw through their non-PRC employment.”
In 2014, while employed at a U.S. information technology company headquartered in Dallas, Texas, the affidavit states that Gong sent a business proposal to a contact at the 38th Research Institute of the China Electronics Technology Group Corporation, a high-tech research institute in China focused on both military and civilian products. In his proposal, translated from Chinese, Gong described a plan to produce high-performance analog-to-digital converters similar to those produced by his employer, noting that the global market for those products “is basically monopolized by several companies in the United States” and that the export of those items from the United States requires a “government export license.” On May 8, 2023, the FBI executed a search warrant at Gong’s temporary residence in Thousand Oaks, California, and recovered several digital devices containing hundreds of documents marked as confidential or proprietary belonging to the U.S. information technology company, the affidavit alleges.
In another Talent Program application in September 2020, the affidavit states, Gong proposed to develop “low light/night vision” image sensors for use in military night vision goggles and civilian applications. In a video presentation included with Gong’s submission, Gong used a video containing the model number of a sensor developed by an international defense, aerospace, and security company where Gong worked from 2015 to 2019.
According to the affidavit, Gong also travelled to China several times to seek Talent Program funding to develop sophisticated analog-to-digital converters. In his Talent Program applications, Gong underscored that the high-performance analog-to-digital converters he proposed to develop in China had military applications, explaining that they “directly determine the accuracy and range of radar systems” and that “[m]issile navigation systems also often use radar front-end systems.” In a 2019 email, translated from Chinese, Gong remarked that he “took a risk” by traveling to China to participate in the Talent Programs “because [he] worked for . . . an American military industry company[]” and thought he could “do something” to contribute to China’s “high-end military integrated circuits.” The affidavit states that Gong “continued to seek funding from Chinese government programs through at least March 2022.”
BIS and the FBI are investigating the case.
Assistant U.S. Attorneys Nisha Chandran and David Lachman for the Central District of California are prosecuting the case, with valuable assistance provided by Trial Attorney Brendan Geary of the National Security Division’s Counterintelligence and Export Control Section.
These cases were coordinated through the Disruptive Technology Strike Force, 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. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. government to enhance the criminal and administrative enforcement of export control laws.
An indictment and a criminal complaint are merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jury convicts Dighton man of child exploitation chargesRead the Press Release
WICHITA, KAN. – A federal jury convicted a Kansas man on child exploitation charges.
The jury found Daniel Kroeker, 49, of Dighton, guilty of receiving child pornography via his social media account in July 2019. The jury also found he possessed a laptop and cell phone containing pornographic images of a child under the age of 12 when agents conducted a search in December 2020.
Kroeker is scheduled to be sentenced on April 24, 2024 and faces a maximum penalty of 20 years in prison of each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Kansas Bureau of Investigation, North Dakota Bureau of Investigation, and Homeland Security Investigations (HSI) – North Dakota are investigating the case.
Assistant U.S. Attorney Jason Hart is prosecuting the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.###
Jury Convicts Mississippi Man of Drug and Firearm OffensesRead the Press Release
Gulfport, Miss. – A Gulfport resident was convicted by a federal jury of possession with intent to distribute methamphetamine and possession of a firearm by a convicted felon.
Mark Anthony Robillia, 54, was found guilty following a two-day trial in U.S. District Court in Gulfport.
According to court documents and evidence presented at trial, on December 1, 2022, the DEA and Gulfport Police Department executed a search warrant at a residence in Gulfport where they found Robillia, along with four firearms in plain view. Officers also found three identification cards belonging to Robillia and a letter addressed to him at that residence. They also discovered a fifth firearm and approximately 40 grams of methamphetamine wrapped in 13 separate baggies hidden in a closet.
Further investigation revealed that Robillia purchased three of the firearms and the remaining two were given to him. Robillia had been previously convicted and incarcerated for aggravated assault, being a felon in the possession of a firearm, and possession with intent to distribute a controlled substance. The evidence also indicated that Robillia was distributing methamphetamine from the house where the search warrant was executed.
Robillia is scheduled to be sentenced on May 14, 2024. He faces a maximum sentence of twenty years in prison for the drug offense and fifteen years for the gun offense.
U.S. Attorney Todd W. Gee and Acting Special Agent in Charge Steven Hofer of the Drug Enforcement Administration made the announcement.
The Drug Enforcement Administration and the Gulfport Police Department investigated the case.
Assistant U.S. Attorneys Jonathan Buckner and Lee Smith prosecuted the case.
Jury Convicts Glens Falls Man of Transmitting ThreatsRead the Press Release
ALBANY, NEW YORK – Jesse Bedell, age 35, of Glens Falls, New York, was convicted yesterday of transmitting threats to injure another person, following a 2-day trial. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
The evidence at trial established that Bedell applied to work at Medline Industries’ NAMIC Division in Glens Falls and received an employment offer conditioned upon passing a background investigation. Bedell, however, failed to disclose a prior criminal conviction. As a result, on January 9, 2020, Medline withdrew the employment offer. The following morning, Bedell phoned Medline employees in Neptune, New Jersey, and Northfield, Illinois, and threatened to burn down and blow up the Glens Falls plant. Bedell also threated to kill the employee in Illinois.
The jury took 20 minutes to convict Bedell on both counts. Sentencing is scheduled for June 12, 2024, before United States District Judge Mae A. D’Agostino in Albany, at which time the defendant faces a maximum term of imprisonment of 5 years, a fine of up to $250,000 and a term of supervised release of up to 3 years. The 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.
The case was investigated by the Glens Falls Police Department and HSI, with assistance from the Warren County District Attorney’s Office. Assistant U.S. Attorney Douglas Collyer is prosecuting the case.
Holyoke Man Who Possessed Fentanyl-Laced Heroin, Cocaine and Firearm Sentenced to 10 Years in PrisonRead the Press Release
BOSTON – A Holyoke man has been sentenced in federal court in Springfield in connection with drug and firearm offenses.
Jonathan Mercedes, 31, was sentenced on Feb. 5, 2024 by U.S. District Court Judge Mark G. Mastroianni to 10 years in prison and four years of supervised release. In July 2023, Mercedes pleaded guilty to one count of possession with intent to distribute 40 grams of more of fentanyl; one count of possession with intent to distribute cocaine; and one count of possession of firearms in furtherance of drug trafficking felonies.
On April 7, 2022, Mercedes possessed with intent to distribute 60 grams of fentanyl laced heroin and 59 grams of cocaine. Mercedes also possessed a Ruger .22 caliber semi-automatic handgun loaded with nine rounds of .22 caliber ammunition and a Smith and Wesson 9mm semi-automatic handgun loaded with 11 rounds of 9mm ammunition.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; and Holyoke Police Chief Manuel Febo made the announcement today. Assistant United States Attorney Todd E. Newhouse of the Springfield Branch Office prosecuted the case.
Greenwich Man Pleads Guilty to Child Exploitation OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut announced that CHRISTOPHER BATES JR., 37, of Greenwich, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in New Haven to a child exploitation offense.
According to court documents and statements made in court, an international law investigation revealed that an IP address at Bates’ residence was being used to access the dark web to view images and videos depicting the sexual abuse of children. On November 30, 2022, Homeland Security Investigations (HSI) agents interviewed Bates, who consented to a search of his electronic devices. A forensic review of one of his laptops revealed approximately 1,222 images and two videos depicting the sexual abuse of children, including infants.
Bates, who is an attorney admitted to practice in New York and Connecticut, pleaded guilty to possessing and accessing with intent to view child pornography, an offense that carries a maximum term of imprisonment of 20 years. A sentencing date has not been scheduled.
Bates was arrested on December 13, 2022. He is released on a $300,000 bond under electronic monitoring pending sentencing.
This matter has been investigated by HSI with the assistance of Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorneys Neeraj N. Patel and Daniel Gordon.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Gang member found guilty in assault on correctional officerRead the Press Release
ATLANTA - Cody Ryan Todd has been found guilty by a federal jury of assault on a Bureau of Prisons correctional officer at the U.S. Penitentiary in Atlanta, Georgia (USP-Atlanta).
“Detainees and inmates cannot commit crimes with impunity while they are behind bars,” said U.S. Attorney Ryan K. Buchanan. “Correctional officers in Bureau of Prisons facilities perform an essential role in safeguarding the welfare of penitentiary staff and inmates. Assaults committed against these law enforcement officers will not be tolerated.”
“This case shows the risk correctional officers face daily. Todd’s intent to do harm towards this officer will be met with serious consequences,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate such attacks against members of law enforcement, and Todd will now face further consequences for his actions.”
“The Federal Bureau of Prisons appreciates the U.S. Attorney’s Office and our law enforcement counterparts for their hard work and diligence in bringing this case to justice. Our employees safety is paramount. This prosecution sends a clear message that this behavior will not be tolerated and underscores our commitment to creating a safe and secure environment for our employees and those in our care,” said Randilee Giamusso, Spokesperson for the Federal Bureau of Prisons.
According to U.S. Attorney Buchanan, the charges and other information presented in court: On January 28, 2021, Cody Todd assaulted a correctional officer while Todd was in custody as a pretrial detainee at USP-Atlanta. Todd hit the officer in the face, knocked him to the floor, and then struck the officer several more times while the officer was incapacitated. This assault left the officer with significant injuries.
At the time of the assault, Todd was being detained on charges of racketeering activity in connection with his crimes committed as a member of the Ghost Face Gangsters. The racketeering activity included, among other offenses, murder, attempted murder, kidnapping and robbery.
Cody Ryan Todd, 34, of Carrollton, Georgia, was separately convicted of conspiracy to commit racketeering and sentenced to 16 years in prison. Todd had also previously been convicted of battery on four separate occasions. He is scheduled to be sentenced before U.S. District Judge Victoria Calvert on May 8, 2024, at 10:00 a.m.
This case is being investigated by the Federal Bureau of Investigation and the Bureau of Prisons.
Assistant U.S. Attorneys Richard Beaulieu and Alison Prout are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.