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6 February 2024
San Diego Restaurant Owner Charged with Tax and COVID-Relief Fraud SchemesRead the Press Release
A federal grand jury in San Diego returned a superseding indictment on Feb. 2, charging a California man with wire fraud, conspiracy to commit wire fraud, tax evasion, filing false tax returns, conspiracy to defraud the United States, conspiracy to commit money laundering and failing to file tax returns.
According to the indictment, Leronce Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area. He allegedly conspired with his business partner to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return filed with the IRS. The indictment alleges that from March 2020 to June 2022, Suel and the business partner then used this false corporate tax return to qualify for the COVID-19-related Paycheck Protection Program and Restaurant Revitalization Funding loans. Suel also allegedly falsely certified on loan forgiveness applications that he spent the money his restaurants received from these programs only for payroll. The indictment charges that Suel and his co-conspirator made substantial cash withdrawals from their business bank accounts to launder the fraudulently obtained funds. As part of the conspiracy, Suel and his co-conspirator allegedly concealed more than $2.4 million in cash at their residence.
The indictment further charges that Suel failed to report income he received from his businesses, including millions of dollars in cash and personal expenses paid for by the businesses, such as the rent for his home. In 2023, Suel also allegedly filed original and amended tax returns for prior tax years that included false depreciable assets and business losses.
If convicted, Suel faces a maximum penalty of 30 years in prison for each count of wire fraud and conspiracy to commit wire fraud, 10 years in prison for each count of conspiracy to commit money laundering, five years in prison for tax evasion and conspiracy to defraud the United States, three years in prison for each count of filing false tax returns and one year in prison for each count of failing to file tax returns. 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 U.S. Attorney Tara K. McGrath for the Southern District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Julia Rugg of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Beeler for the Southern District of California are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rochester man charged for purchases made on illicit online marketplaceRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney Trini E. Ross announced today that Brandon Hall, 23, of Rochester, NY, was charged by criminal complaint with possessing 15 or more unauthorized access devices. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that since August 2018, the FBI has been investigating an illicit online marketplace known as Genesis Market, whose operators compile stolen data, such as computer and mobile device identifiers, email addresses, usernames, and passwords, from malware-infected computers around the globe and package it for sale on the market. Purchases made through Genesis Market are conducted using virtual currency, such as bitcoin.
According to the complaint, between November 2019, and February 2021, Hall purchased 12 packages on Genesis Market that included approximately 1,100 stolen account credentials. The stolen credentials included accounts for Citi Bank, AT&T, Venmo, Twitter, Netflix, LinkedIn, Spotify, Hulu, Google, Paypal, Microsoft, Yahoo, Walmart, Target, and Amazon accounts. In May 2023, investigators executed a search warrant and seized Hall’s cell phone. An analysis of the phone recovered information regarding Hall’s activity on Genesis Market.
Hall will make an initial appearance before U.S. Magistrate Judge Mark W. Pedersen on February 7, 2024, at 2:15 p.m.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Providence Man Sentenced to Federal Prison for Trafficking Meth and FentanylRead the Press Release
PROVIDENCE, RI – A Providence man with a lengthy criminal history, to include more than a dozen convictions for a wide variety of offenses, including breaking and entering, drug trafficking, domestic violence, forgery and counterfeiting, larceny, armed bank robbery, and carrying a concealed weapon, was sentenced today to five years in federal prison for trafficking more than a pound of methamphetamine and more than 60 grams of fentanyl, announced United States Attorney Zachary A. Cunha.
John Walker, 61, pleaded guilty on June 13, 2023, to charges of possession with intent to distribute 50 grams or more of methamphetamine and possession with intent to distribute 40 grams or more of fentanyl. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 60 months in federal prison to be followed by five years of federal supervised release.
During an investigation into Walker’s suspected drug trafficking activities in March 2022, members of the Rhode Island DEA Drug Task Force observed Walker provide another individual with a sample of methamphetamine. Later that same day the individual arranged for the purchase of meth from Walker. When approached by a DEA Task Force officer, Walker admitted that he had meth on his person and that he had additional drugs stored at a drug den that he frequently visited. Members of the DEA Task Force seized 59 grams of meth and $5,902 in cash from Walker’s person and 449 grams of methamphetamine and 64 grams of fentanyl stashed by Walker at the Providence drug den.
The case was prosecuted by Assistant U.S. Attorney G. Michael Seaman.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; Rhode Island State Police; the Cranston, Middletown, Newport, Pawtucket, Providence, Warwick, Woonsocket, Amtrak Police Departments.
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Pittsburgh Resident Indicted on Felony Firearms ChargeRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating a federal firearms law, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Kendall McCoy, 21, as the sole defendant.
According to the Indictment, on or about June 27, 2022, McCoy is alleged to have possessed a firearm and ammunition as a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of up to 15 years in prison, a fine of $250,000 or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney DeMarr W. Moulton is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Resident Indicted on Drug and Felony Firearms ChargesRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and federal firearms laws, United States Attorney Eric G. Olshan announced today.
The three-count Superseding Indictment named Elijah Hanna, 25, as the sole defendant in this case.
According to the Superseding Indictment, on December 12, 2023, Hanna possessed with intent to distribute a quantity of fentanyl, possessed a firearm in furtherance of a drug crime, and possessed a firearm after having been convicted of a felony. Federal law prohibits the possession of a firearm or ammunition by a convicted felon.
The law provides for a maximum possible sentence of not less than five years and up to life in prison, a fine of up to $3,000,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.The Bureau of Alcohol, Tobacco, Firearms and Explosives and Pittsburgh Bureau of Police conducted the investigation leading to the Superseding Indictment in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug trafficking and federal firearms laws, United States Attorney Eric G. Olshan announced today.
The four-count Indictment named Lester Burrell Jackson III, 32, as the sole defendant in this case.
According to the Indictment, on or about November 14, 2023, December 7, 2023, and January 2, 2024, Jackson knowingly and unlawfully distributed quantities of methamphetamine. The Indictment further charges that, on or about January 27, 2024, Jackson possessed a firearm and ammunition after having been convicted of a felony. Federal law prohibits the possession of a firearm or ammunition by an individual who has been convicted of a felony.
The law provides for a maximum possible sentence of not less than 10 years and up to life in prison, a fine of up to $5,000,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney DeMarr W. Moulton is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Woman Sentenced for Conspiring to Distribute 11 Kilos of NarcoticsRead the Press Release
BOSTON – A Philadelphia woman has been sentenced to eight days in prison for conspiring to distribute kilos of fentanyl and heroin. The government recommended a sentence of 37 months in prison.
Elba Pena, 34, was sentenced on Feb. 1, 2024 by U.S. District Court Judge Allison D. Burroughs to time served (eight days) and three years of supervised release with one year to be served in home confinement. Pena pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl and heroin.
In November 2021, Pena traveled from Philadelphia to Methuen, Mass. to deliver two kilograms of heroin to a person she thought was a customer. Specifically, on Nov. 16, 2021, Pena met with an undercover officer posing as the purported customer at a commercial plaza in Methuen and delivered the heroin. Pena was immediately taken into custody. A subsequent search of Pena’s Philadelphia residence resulted in the recovery of nine kilograms of fentanyl.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Samuel R. Feldman of the Narcotics & Money Laundering Unit prosecuted the case.
Pair Sentenced to 300 Months in PrisonRead the Press Release
HAMMOND – Abigail Dawes, 30 years old, of East Chicago, Indiana, and Alfonso Rodriguez, 30 years old, of Chicago, Illinois, were sentenced by United States District Court Judge Philip P. Simon after pleading guilty to Producing Visual Depictions of A Minor Engaged in Sexually Explicit Conduct, announced United States Attorney Clifford D. Johnson.
Dawes, sentenced February 1, 2024, and Rodriquez, sentenced today, were both sentenced to 300 months in prison followed by 15 years of supervised release.
According to documents in the case, on or about June 2022, Dawes and Rodriquez produced child sexual abuse material.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Assistant United States Attorneys Philip C. Benson and Emily Morgan.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Ocean County Man Sentenced to 30 Years in Prison for Sexually Exploiting MinorRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 360 months in prison for coercing a minor into producing images of child sexual abuse, U.S Attorney Philip R. Sellinger announced.
Samuel Schwinger, 38, Lakewood, New Jersey, previously pleaded guilty before U.S. District Court Judge Georgette Castner to an information charging him with one count of sexual exploitation of a minor. Judge Castner imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
In March 2019, Schwinger used an internet-based application to communicate with the victim, who was under the age of 12. Schwinger asked the victim to make sexually explicit videos of the victim and send them to him. Schwinger admitted that from October 2018 through April 5, 2019, he communicated with more than 25 minor victims for the purpose of producing and distributing sexually explicit material.
In addition to the prison term, Judge Castner sentenced Schwinger to 10 years of supervised release and ordered that he register as a sexual offender upon release.
U.S. Sellinger credited special agents Homeland Security Investigations, Cherry Hill, under the direction of Acting Special Agent in Charge Michael Alfonso in Newark; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; and the Lakewood New Jersey Police Department under the direction of Chief Gregory Meyer.
The government is represented by Assistant U.S. Attorney Michelle Gasparian, Chief of the Organized Crime and Gangs Unit.
Newark Man Sentenced to Eight Years in Prison for Possessing Five Firearms in Furtherance of Drug Trafficking and Conspiring to Distribute Fentanyl and CocaineRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 96 months in prison for participating in a conspiracy to distribute fentanyl and cocaine in the area of Lincoln Park in Newark, and for possessing five firearms in furtherance of drug trafficking, U.S. Attorney Philip R. Sellinger announced.
Khalid Holland, 44, of Newark, pleaded guilty on May 15, 2023, before U.S. District Judge Julien Xavier Neals to an information charging him with one count of possession of firearms and ammunition by a convicted felon; one count of possession of firearms in furtherance of a drug trafficking crime; and conspiracy to distribute fentanyl and cocaine. Judge Neals imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Holland admitted conspiring to distribute fentanyl and cocaine between June 2022 and September 2022 in Newark, New Jersey. As a result of this investigation, law enforcement recovered 13 firearms at various residences, including five in Holland’s residence, hundreds of rounds of ammunition, and thousands of individual doses of fentanyl and cocaine. Holland admitted to possessing the five firearms recovered in his residence in furtherance of drug trafficking.
In addition to the prison term, Judge Neals sentenced Holland to three years of supervised release.
U.S. Attorney Sellinger credited members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Office, under the supervision of Special Agent in Charge Bryan Miller; members of the Drug Enforcement Administration, New Jersey Division Office in Newark, under the supervision of Special Agent in Charge Cheryl Ortiz; members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; members of the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; and members of the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel, with the investigation leading to today’s sentencing.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office’s National Security Unit in Newark.
New York City Resident Pleads Guilty to Defrauding Wisconsin Residents in Professional Sports Ticket ScamRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 6, 2024, Nikhil S. Mahtani (age: 28) of New York, New York, was arraigned in federal court and immediately entered a guilty plea to a charge of wire fraud in violation of Title 18, United States Code, Section 1343.
According to court documents, between approximately January 4, 2019, and December 11, 2022, Mahtani placed over 1,000 ads on Craigslist offering high end tickets and luxury box suites to National Football League, National Basketball League, and other professional sporting events around the country. Numerous victims throughout the Eastern District of Wisconsin and elsewhere were victimized by Mahtani, who accepted thousands of dollars in payments for tickets and suites he knew were not real. In one instance, a large group of friends and family arrived at the Fiserv Forum the night the Milwaukee Bucks won the NBA Championship in 2021, only to be turned away and told their tickets were fraudulent. As a result of his scheme, Mahtani received approximately $100,000 from victims in Wisconsin and across the United States.
Mahtani faces up to 20 years’ imprisonment when he sentenced by Senior United States District Court Judge William C. Griesbach on May 10, 2024. He may also be fined up to $250,000 and could serve up to three years on supervised release.
This case was investigated by the NYPD Financial Crimes Task Force, the U.S. Department of Homeland Security, Homeland Security Investigations, and the Winnebago County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Daniel R. Humble.
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Nebraska Man Who Traveled to Utah to Attempt to Have Sex with a Minor Sentenced to 15 Years in PrisonRead the Press Release
SALT LAKE CITY, Utah – Dusty Junior Goodspeed, 58, of Lincoln, Nebraska, was sentenced today to 180 months’ imprisonment by a U.S. District Court Judge as a result of a guilty plea. Goodspeed admitted he traveled to Salt Lake City to attempt to engage in sexual activity with someone he believed was a minor. He was charged with attempted coercion and enticement, and travel with the intent to engage in illicit sexual conduct.
According to court documents and statements made at the change of plea hearing, Goodspeed, traveled from Nebraska to Salt Lake City International Airport in December 2022 to engage in sex acts with someone he believed was a 13-year-old boy. Goodspeed had been communicating with an undercover agent, who posed as a 13-year-old boy, and was arrested by law enforcement at baggage claim. Goodspeed admitted that in September 2022, he used Facebook Messenger to contact someone he believed was a 13-year-old. That same month, he began texting the undercover agent who was posing as a minor, messages that were sexual in nature. Goodspeed continued to communicate with the undercover agent until he landed at the airport in Salt Lake City. Goodspeed admitted to law enforcement he intended to spend the weekend with a 13-year-old and have sex with him. In addition to his sentence of imprisonment, Goodspeed was ordered to supervised release for life.
U.S. Attorney Trina A. Higgins of the District of Utah; and the FBI made the announcement.
The case was investigated by the FBI Salt Lake City Division.
Assistant United States Attorneys Allison H. Behrens, of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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
Nashua Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
CONCORD – A Nashua man pleaded guilty today in federal court to firearms-related charges, U.S. Attorney Jane E. Young announces.
Joshua Smith, 39, pleaded guilty to being a felon in possession of a firearm. U.S. District Court Judge Joseph Laplante scheduled sentencing for May 16, 2024. Smith was indicted on May 31, 2022.
On March 8, 2022, Nashua Police detectives were executing an outstanding warrant for the defendant’s arrest. Detectives apprehended and arrested the defendant as he was leaving the building to get into a taxi. The defendant was carrying a duffle bag that contained a 40 mm caliber riot gun. Intelligence revealed that the riot gun was the property of the Manchester Police Department. The defendant had been convicted of several felonies, including a robbery in 2013, and was therefore prohibited from possessing a firearm.
The charges provide for a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. 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.
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Nashua Police Department led the investigation. Assistant U.S. Attorney Aaron Gingrande is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Morton Man Pleads Guilty to Two Felony Counts in Connection with Scheme to Defraud Former EmployerRead the Press Release
PEORIA, Ill. – A Morton, Illinois, man, Aaron Rossi, 40, pleaded guilty today to two felonies connected to a scheme to defraud both his former employer, a Bloomington, Illinois, medical clinic, and the United States. Rossi pleaded guilty to one count of mail fraud and one count of filing a false federal tax return in relation to this scheme. Sentencing for Rossi has been scheduled for June 5, 2024, at the U.S. Courthouse in Peoria, Illinois.
A federal grand jury initially returned an indictment in March 2022, charging Rossi with three counts of filing false tax returns. A superseding indictment was returned in July 2022 that added six counts of mail fraud.
In court before Chief U.S. District Judge Sara Darrow, Rossi admitted that he had carried out the scheme. He told the judge that he had not given all of his earnings information to his accountant so that he would not have to pay taxes on that income. He also admitted that he had taken funds from his former employer, Central Illinois Orthopedic Surgery in Bloomington, without their knowledge or permission, and had purchased personal items, including clothing and an ultra-high-definition big screen television, which he had mailed to his home.
During the hearing, the government noted that Rossi had been involved in extensive fraud upon his employer. This fraud included his purchase of thousands of dollars of clothing from an upscale men’s store and payment for that clothing using company funds. Rossi hid his clothing purchases by calling them “medical supplies” or “uniforms” in his employer’s books and records. Rossi’s undisclosed expenditures also included leasing a luxury vehicle for himself and renting a private plane for his bachelor party. The government further stated that in just 2017, Rossi had more than $500,000 in income that he purposefully hid from the United States and did not declare on his taxes.
Rossi was originally released on bond following indictment but was placed in the custody of the U.S. Marshals Service in September 2023 after multiple bond violations. He remains in custody pending sentencing.
Rossi faces statutory penalties of up to 20 years’ imprisonment, followed by three years of supervised release, for the mail fraud count, and up to three years’ imprisonment, followed by one year of supervised release, for the false tax return count. Each of the counts also carries the potential of a fine.
The case investigation was conducted by the United States Postal Inspection Service, the Internal Revenue Service, and the Federal Bureau of Investigation, Springfield Field Office. Assistant U.S. Attorneys Douglas F. McMeyer and Tanner K. Jacobs represent the government in the prosecution.
Morton Man Pleads Guilty to Two Felony Counts in Connection with Scheme to Defraud Former EmployerRead the Press Release
PEORIA, Ill. – A Morton, Illinois, man, Aaron Rossi, 40, pleaded guilty today to two felonies connected to a scheme to defraud both his former employer, a Bloomington, Illinois, medical clinic, and the United States. Rossi pleaded guilty to one count of mail fraud and one count of filing a false federal tax return in relation to this scheme. Sentencing for Rossi has been scheduled for June 5, 2024, at the U.S. Courthouse in Peoria, Illinois.
A federal grand jury initially returned an indictment in March 2022, charging Rossi with three counts of filing false tax returns. A superseding indictment was returned in July 2022 that added six counts of mail fraud.
In court before Chief U.S. District Judge Sara Darrow, Rossi admitted that he had carried out the scheme. He told the judge that he had not given all of his earnings information to his accountant so that he would not have to pay taxes on that income. He also admitted that he had taken funds from his former employer, Central Illinois Orthopedic Surgery in Bloomington, without their knowledge or permission, and had purchased personal items, including clothing and an ultra-high-definition big screen television, which he had mailed to his home.
During the hearing, the government noted that Rossi had been involved in extensive fraud upon his employer. This fraud included his purchase of thousands of dollars of clothing from an upscale men’s store and payment for that clothing using company funds. Rossi hid his clothing purchases by calling them “medical supplies” or “uniforms” in his employer’s books and records. Rossi’s undisclosed expenditures also included leasing a luxury vehicle for himself and renting a private plane for his bachelor party. The government further stated that in just 2017, Rossi had more than $500,000 in income that he purposefully hid from the United States and did not declare on his taxes.
Rossi was originally released on bond following indictment but was placed in the custody of the U.S. Marshals Service in September 2023 after multiple bond violations. He remains in custody pending sentencing.
Rossi faces statutory penalties of up to 20 years’ imprisonment, followed by three years of supervised release, for the mail fraud count, and up to three years’ imprisonment, followed by one year of supervised release, for the false tax return count. Each of the counts also carries the potential of a fine.
The case investigation was conducted by the United States Postal Inspection Service, the Internal Revenue Service, and the Federal Bureau of Investigation, Springfield Field Office. Assistant U.S. Attorneys Douglas F. McMeyer and Tanner K. Jacobs represent the government in the prosecution.
Monroeville Man Sentenced to Eight Years in Prison for Narcotics and Firearms ViolationsRead the Press Release
PITTSBURGH, Pa. - A resident of Monroeville, Pennsylvania, has been sentenced to eight years of imprisonment and three years of supervised release on his conviction of violating federal narcotics and firearms laws, United States Attorney Eric G. Olshan announced today.
United States Senior District Judge Arthur J. Schwab imposed the sentence on Tiryn Green, 27.
According to information presented to the Court, following two controlled buys of heroin and fentanyl from Green in February 2022, investigators from the PA Office of Attorney General Bureau of Narcotics Investigation (BNI) Unit as well as the Monroeville Police Department executed a search warrant on Green’s Monroeville residence. During that search, investigators recovered drug evidence along with multiple firearms, high capacity magazines, and several hundred rounds of ammunition. Under federal law, Green is prohibited from possessing firearms and ammunition based upon several prior felony convictions.
Assistant United States Attorney Michael R. Ball prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Monroeville Police Department, the PA Office of Attorney General BNI Unit, and the Drug Enforcement Administration for the investigation leading to the successful prosecution of Green.
Missouri Man Sentenced to Serve 30 Years in Federal Prison for Sexually Exploiting MinorsRead the Press Release
CAPE GIRARDEAU – The U.S. Attorney's Office announced that Tony Ray Waites, 47, of Piedmont, Missouri, was sentenced Tuesday by U.S. District Judge Stephen N. Limbaugh, Jr. to 30 years in federal prison for the offense of production of child pornography.
According to court documents, the investigation began in March 2022 when a then 11-year-old boy reported that he had been sexually abused by Waites on multiple occasions. The young boy further reported that he believed Waites recorded the abuse. The Wayne County Sheriff’s Office immediately obtained a search warrant for Waites’ residence. When officers explained the nature of the investigation, Waites quickly grabbed a knife and cut himself in the throat. He was immediately rushed to the hospital for medical treatment, where his condition stabilized. Meanwhile, officers seized various electronic devices inside Waites’ residence. During an examination of the devices, officers discovered several videos depicting Waites engaging in sexual activity with the 11-year-old boy. The examination further revealed that Waites made sexually explicit recordings of nine additional young boys from the area. At his guilty plea hearing last November, Waites admitted that he produced the video recordings depicting the ten young boys engaging in sexually explicit conduct.
After serving the 30-year sentence, Waites will be placed on supervised release for the rest of his life. Waites will also be required to register as a sex offender.
This case was investigated by the Wayne County Sheriff’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Jack Koester handled the prosecution for the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Missouri Man Sentenced to 10 Years in Prison for Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – Daniel Phillip Beckman, 46, of Watson, Missouri, was sentenced today to 10 years in prison, to be followed by five years of supervised release, for receipt of child pornography. Beckman must also register as a sex offender.
According to court documents and statements made in court, on or about November 27, 2022, Beckman began communicating through the Snapchat multimedia instant messaging application while at his Missouri residence with a minor female living within the Southern District of West Virginia. During these Snapchat communications, Beckman offered to pay the minor female for her sending him nude images and videos of herself.
Beckman admitted that he paid the minor female approximately $625 through the CashApp mobile payment service in exchange for numerous images and videos that the minor female sent him using Snapchat. Some of these images showed the minor female’s vaginal area or depicted her masturbating. Beckman admitted that he believed the female to be a minor when he received her photos and videos, and that he saved several of the images to his phone.
On or about December 6, 2022, the minor female introduced Beckman to her friend, also a minor female. Beckman admitted that he began communicating with the other minor female on Snapchat and paid her through CashApp for several images and videos that depicted her nude pubic area. Beckman further admitted that he believed her to be a minor when he received the images, and that he specifically described to her how he wanted her to pose.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Department of Homeland Security-Homeland Security Investigations (HSI) and the West Virginia State Police.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-158.
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Milwaukee Business Owner Convicted of Tax and Bankruptcy OffensesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on January 31, 2024, Lakeesha S. Jackson (age: 45) of Milwaukee, Wisconsin, pleaded guilty to federal tax and bankruptcy crimes.
According to court documents, Jackson was the owner and operator of Nurturing Concepts LLC, a personal care agency. She willfully failed to pay over to the Internal Revenue Service (IRS) more than $100,000 in payroll taxes her business withheld from employee paychecks in the second, third, and fourth quarters of 2017.
Nurturing Concepts then filed a bankruptcy petition under Chapter 7 of the Bankruptcy Code listing the IRS as its largest creditor. Jackson admitted to fraudulently submitting a forged bank statement during this proceeding in an effort to hide a $40,000 transfer from Nurturing Concepts to Jackson’s successor business, Center of Care LLC. Jackson further admitted to improperly diverting to this successor business payments made out to Nurturing Concepts.
“Individuals and businesses who engage in this type of tax and bankruptcy fraud not only injure every taxpayer but also place businesses who play by the rules at a commercial disadvantage,” stated U.S. Attorney Haanstad. “The U.S. Attorney’s Office is committed to working with all of our law enforcement partners to hold individuals who engage in these offenses fully accountable for their actions.”
“Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service,” stated Special Agent in Charge Justin Campbell of the Chicago Field Office. In addition, Campbell stated, “Obstruction and dishonesty are common factors in bankruptcy fraud and IRS Criminal Investigation is proud to lend its expertise in these complex investigations.”
This case was investigated by the Special Agents from the Internal Revenue Services’ Criminal Investigation Division. It was prosecuted by Assistant United States Farris Martini. Jackson is scheduled to be sentenced on April 30, 2024, before United States District Judge Lynn Adleman.
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Middle District of Florida U.S. Attorney’s Office Collects More Than $78 Million in Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
Tampa ― U.S. Attorney Roger B. Handberg announced today that the Middle District of Florida (MDFL) has collected $78,043,065 related to local criminal and civil matters in the fiscal year ending September 30, 2023 (FY 2023). Of this amount, $36,767,863 was collected in criminal cases and $28,641,442 was collected in civil actions.
The MDFL’s Civil Division, led by Civil Chief Randy Harwell, recovered a total of $41,230,830 on behalf of federal agencies and programs in affirmative civil enforcement cases during the last fiscal year. This amount has two components. In addition to its efforts in local civil cases noted above, the District’s Civil Division also joins forces with other U.S. Attorney’s Offices and with the Department of Justice Civil Frauds Section to address fraud schemes and illegal practices extending beyond district boundaries. The MDFL’s Civil Division recovered an additional $12,589,388 in these jointly handled cases.
“We will continue to work with our law enforcement partners to investigate and prosecute those who seek to illegally exploit federal government programs by fraudulent means,” said U.S. Attorney Roger B. Handberg. “The funds recovered in the previous fiscal year will help victims recover from their losses and assist law enforcement in pursuing justice.”
U.S. Attorneys’ Offices, along with the Department’s litigation divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The MDFL’s Asset Recovery Division, led by Chief Anita Cream, recovered a total of $55,930,305. This amount has two components―criminal monetary penalties and forfeiture. First, in addition to the $36,767,863 in criminal monetary penalties collected in cases prosecuted by the District, the Asset Recovery Division worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $44,372 in criminal monetary penalties pursued jointly by these offices.
Additionally, the District’s Asset Recovery Division, working with partner agencies, forfeited $19,118,070 from criminal and civil asset forfeiture actions in FY 2023. For instance, in FY 2023, almost $44 million forfeited in the MDFL was returned to victims of the criminal offenses, and more than $3 million was shared with federal, state, and local law enforcement agencies. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Significant Affirmative Civil Enforcement Cases
United States ex rel. Sanchez v. Smart Pharmacy, et al., Case no. 3:14cv1493 (M.D. Fla.). The United States intervened in two related qui tam cases in June 2018 and litigated the government’s claims against a large Jacksonville area compounding pharmacy, Smart Pharmacy, and one of its principal owners, Gregory Balotin, claiming that the pharmacy billed the Tricare program for millions of dollars in reimbursement for medically unnecessary pain creams. Specifically, the intervenor complaint alleged the pharmacy created compounded creams using an anti-psychotic agent, Ariprazole, for no medical purpose and solely to boost reimbursement. The complaint also alleged that the pharmacy routinely waived patient co-payments, without regard to patient need, to improperly incentivize prescriptions for the unnecessary pain creams. In June 2023, we announced a settlement of all claims in exchange for $7.4 million.
Press release: https://www.justice.gov/opa/pr/two-jacksonville-compounding-pharmacies-and-their-owner-agree-pay-least-74-million-resolve
United States ex rel. Bomar v. Bayfront HMA Medical Center, et al., Case no. 8:16cv3310 (M.D. Fla.).
An investigation arising from this qui tam case determined that the Lakeland Regional Medical Center (LRMC) had defrauded the Florida Medicaid program through a complex scheme involving sham donations to local government organizations. These donations increased Medicaid payments to LRMC, by freeing up funds for the local government to make payments to the State as the state share of Medicaid payments to LRMC. The state share was “matched” by the federal government before being returned to LRMC as Medicaid payments. Through this scheme, Medicaid payments LRMC received were thus funded by the federal government and LRMC’s own donations, in violation of the prohibition on non-bona fide donations. In March 2023, LRMC agreed to pay $4 million to resolve these allegations.
Press release: https://www.justice.gov/opa/pr/florida-s-lakeland-regional-medical-center-agrees-pay-4-million-settle-common-law-allegations
United States ex rel. Improta v. Ocenture, Case no. 3:19cv358 (M.D. Fla.).
The United States intervened in this qui tam case that alleged a kickback scheme arising from genetic testing services. The complaint alleged that Ocenture and a subsidiary company, Carelumina, solicited genetic testing samples from Medicare beneficiaries directly and through marketers. Ocenture and Carelumina then paid physicians to falsely attest that the genetic testing was medically necessary and arranged for laboratories to process the tests and receive reimbursement from Medicare, with a portion of that reimbursement being paid to Ocenture and Carelumina. In December 2022, we announced a settlement of all claims in return for $3 million.
Press release: https://www.justice.gov/opa/pr/ocenture-llc-and-carelumina-llc-settle-allegations-false-claims-unnecessary-genetic-testing
Skyetec
The U.S. Environmental Protection Agency - Office of Inspector General accused a Jacksonville area company, SMC Systems, Inc. d/b/a Skyetec, of violating the Financial Institutions Reform, Recovery and Enforcement Act of 1989 through a scheme whereby Skyetec would falsely certify that newly constructed homes met certain energy efficiency requirements and qualified for EPA’s “Energy Star” rating. The certifications were alleged to have been given to homes in many instances where Skyetec had performed incomplete tests on homes, or had run no tests at all. In September 2023, Skyetec agreed to settle our claims for $2.35 million.
Press release: https://www.justice.gov/opa/pr/smc-systems-inc-pay-235-million-resolve-allegations-false-statements-relating-energy-star
United States ex rel. Graham, et al. v. Florida Cardiology, P.A., et al., Case no. 6:18cv1444 (M.D. Fla.)
The United States intervened in this qui tam case in June 2022, and alleged that an Orlando area cardiology practice, Florida Cardiology, P.A., and 10 of its cardiologists―Sandeep Bajaj, Abbas Ali, Karan Reddy, Claudio Manubens, Milan Kothari, Saroj Tampira, Sayed Hussain, Raviprasad Subraya, Harish Patil, and Edwin Martinez―defrauded Medicare through a variety of schemes, including the submission of false claims for more interventional stints that were actually inserted into patients, claims for radiofrequency ablations that were not performed by the billing provider and in some instances that were not performed by a qualifying provider, and claims for services performed while the billing provider was outside of the country. In February 2023, the defendants agreed to settle all claims in the case in exchange for $2 million.
Press Release: https://www.justice.gov/usao-mdfl/pr/florida-cardiology-pa-and-10-physicians-agree-pay-2-million-settle-false-claims-act
Memphis Man Sentenced to 14 Years for Drug Trafficking OffensesRead the Press Release
Memphis, TN – A federal judge sentenced a Memphis man to 14 years in federal prison for conspiracy to possess fentanyl with intent to distribute. United States Attorney Kevin G. Ritz announced the sentence today.
According to the information presented in court, Bartlett Police Department detectives began investigating Derwin Owens, 32, in 2020 for suspected drug trafficking. Over several months, investigators purchased fentanyl from Owens and used tracking devices to identify several residences he used for storing narcotics. On August 13, 2020, investigators executed search warrants on those addresses, leading to the recovery of $33,000 and approximately 4.5 pounds of fentanyl.
In November 2022, Owens pleaded guilty to conspiracy to possess with the intent to distribute 1.2 to 4 kilograms of fentanyl.
On February 1, 2024, United States District Judge John T. Fowlkes sentenced Owens to 168 months in federal prison followed by five years of supervised release. There is no parole in the federal system.
This prosecution is part of an extensive investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking organizations and organized criminal enterprises, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration, United States Postal Inspection Service, and Bartlett Police Department.
U.S. Attorney Ritz thanked Assistant United States Attorney Michelle Kimbril-Parks who prosecuted this case, as well as the law enforcement partners who investigated the case.
Marion County man admits to theft of firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jaeson Wayne Marbury, age 30, of Fairmont, West Virginia, has admitted to theft of a firearm from a licensed dealer.
According to court documents, Marbury purchased 19 firearms from licensed dealers in Morgantown, West Virginia, with personal checks that later bounced because of insufficient funds, knowing his account couldn’t cover the purchases. Marbury then sold the firearms to individuals and pawn shops.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Assistant U.S. Attorney Brandon Flower is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Michael John Aloi presided.
Manhattan Man Sentenced to 27 Months in Prison for Conspiracy to Transport A Firearm InterstateRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced that JAMIL HAKIME was sentenced today to 27 months in prison for conspiring to transport a firearm interstate in connection with HAKIME’s sale of a firearm and 19 rounds of ammunition on November 18, 2022, to Christopher Brown and Matthew Mahrer. Brown and Mahrer planned to use the weapon to violently attack a synagogue in New York City. At the time of the sale, HAKIME was employed by New York City’s Administration for Children Services (“ACS”), where he worked with New York City youth. HAKIME previously pled guilty on March 14, 2023, before U.S. District Judge Analisa Torres, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Jamil Hakime, a City employee who was supposed to be protecting youths, instead decided to arm two men — one of whom had just declared on Twitter his plan to ‘shoot up a synagogue’ — with a powerful firearm and ammunition. But for swift action by law enforcement, Hakime’s actions could have resulted in a monumental tragedy on New York’s Jewish community and could have devastated the lives of many people who were targeted solely for their religious beliefs and their desire to worship. The sentence imposed today sends a clear message to those who would recklessly arm others with weapons that may be used to commit acts of mass violence that such conduct will not be tolerated.”
FBI Assistant Director in Charge James Smith said: “Hakime admitted that he willingly chose to provide two men with a firearm enhanced with features enabling it to harm dozens of victims. The men to whom he chose to sell that firearm planned to use it to attack a synagogue. Thankfully, the FBI’s Joint Terrorism Task Force in New York became aware of the plot. Along with our law enforcement partners, we were able to disrupt their plans before they could do any harm, but the outcome could have been far worse. The punishment handed down today shows that there are serious consequences to arming others with dangerous weapons designed to kill.”
NYPD Commissioner Edward A. Caban said: “Individuals like Hakime who enable others to carry out hate-motivated attacks must face the consequences of their actions. NYPD investigators, closely partnering with our state and federal colleagues on the FBI’s New York Joint Terrorism Task Force, likely averted tragedy through their swift and diligent work on this case. Today’s sentencing serves as a reminder of our ongoing work to hold accountable anyone who threatens the safety and security of New Yorkers.”
According to the Indictment, documents previously filed in the case, and statements made in court:
In the early morning hours of November 18, 2022, Brown posted on Twitter that he intended to “shoot up a synagogue,” emphasizing, “This time I’m really gonna do it.” That afternoon, Brown and Mahrer contacted HAKIME, a resident of Manhattan who had been employed since 2014 by ACS as a Youth Developmental Specialist, to obtain a firearm. HAKIME, Brown and Mahrer traveled together in HAKIME’s vehicle from Manhattan to HAKIME’s home in Pennsylvania. During the trip to HAKIME’s residence, law enforcement contacted Brown by phone regarding his threatening online posts. Brown then deleted the threatening messages that he had posted on Twitter.
Shortly thereafter, HAKIME, Brown, and Mahrer arrived at HAKIME’s Pennsylvania home, where HAKIME retrieved for Brown and Mahrer a Generation 5 Glock 17 pistol (the “Firearm”) as well as 19 rounds of ammunition (the “Ammunition”). The Firearm had an extended magazine, which allowed it to hold up to 30 rounds of ammunition, and a weapon-mounted light and red dot optic device that allowed the user to have better aim at his target. HAKIME taught Mahrer and Brown how to use the Firearm and further instructed the men to wipe off the Firearm to remove HAKIME’s fingerprints. Brown and Mahrer paid HAKIME approximately $650 for the Firearm and Ammunition.
HAKIME then drove Brown and Mahrer back to Manhattan with the Firearm and Ammunition. Brown and Mahrer temporarily hid the Firearm and Ammunition in Mahrer’s bedroom at his family’s residence in Manhattan and then traveled together to Penn Station, where they were arrested by law enforcement. HAKIME remained in phone contact with Mahrer until minutes before Brown’s and Mahrer’s arrests. At the time of those arrests, law enforcement recovered from a bag that Brown was carrying a large hunting knife and a Swastika arm band. Law enforcement also recovered from Mahrer’s apartment a backpack containing the Firearm and Ammunition, as depicted below:
* * *
In addition to his prison term, HAKIME, 59, of New York, New York, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the FBI New York Field Office, including the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, and the FBI’s Civil Rights Squad.
This case is being handled by the Office’s National Security and International Narcotics Unit and Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Sarah L. Kushner and Mitzi S. Steiner are in charge of the prosecution.
Man Admits Escaping St. Louis Halfway House, Gun CrimeRead the Press Release
ST. LOUIS – A man on Tuesday admitted escaping from a halfway house in St. Louis, Missouri in 2018 just days after being caught with a firearm.
Bradford Craig Dean, 56, pleaded guilty in U.S. District Court in St. Louis to one felony count of escape and one count of being a felon in possession of a firearm.
Dean was sentenced to 15 years in prison in 2006 after pleading guilty to being a felon in possession of a firearm. After his release from prison, Dean was confined at Dismas House St. Louis.
On Oct. 27, 2018, Dean was stopped for speeding in Normandy, and officers spotted a handgun in the vehicle's cup holder. It was loaded and had been stolen ten days earlier in St. Louis. Officers also found $1,650 in cash, two firearm magazines, two digital scales and 16 bags containing marijuana, indicative of marijuana sales.
Two days later, Dean left Dismas house without permission and did not return. He remained a fugitive until he was located and arrested on Jan. 9, 2024.
Dean is scheduled to be sentenced May 7. The escape charge is is punishable by up to five years in prison. The felon in possession charge is punishable by up to 10 years in prison. Both also carry potential fines of up to $250,000.
The U.S. Marshals Service and the Normandy Police Department investigated the case. Assistant U.S. Attorney Paul D’Agrosa is prosecuting the case.
Lincoln Woman Sentenced to 54 Months in Prison for Role in Meth Distribution ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Angelica Agena, 41, of Lincoln, Nebraska, was sentenced on February 6, 2024, in federal court in Lincoln for possession with intent to distribute methamphetamine and conspiracy to distribute and possess with intent to distribute methamphetamine. Senior United States District Judge John M. Gerrard sentenced Agena to 54 months’ imprisonment. There is no parole in the federal system. After her release from prison, Agena will be required to complete a 5-year term of supervised release. A federal jury convicted Agena of these charges on November 11, 2023.
On June 29, 2022, Lancaster County Sheriff’s deputies stopped a red Camaro for having an inoperable taillight. Neither the driver, Gary Payton, nor the passenger, Agena, had a valid driver’s license. A deputy observed an open alcoholic beverage container behind the passenger seat. Deputies thereafter searched the Camaro and its contents.
During the search, one of the deputies opened Agena’s purse which was left on the floor on the front passenger side when she was asked out of the car. The deputy found a large gallon-sized bag containing suspected methamphetamine inside the purse. Deputies performed a field test on the substance in the bag and presumptively confirmed that the substance was methamphetamine. The deputies also seized Payton’s and Agena’s phones as evidence. Information from the phones revealed Agena and Payton’s involvement in a methamphetamine distribution conspiracy in the Lincoln and Omaha areas.
The suspected methamphetamine from the vehicle was sent to the Nebraska State Patrol Crime Laboratory for confirmatory testing. The lab confirmed the that the bag found in Agena’s purse contained approximately 7 ounces of methamphetamine, a quantity intended for distribution.
In a separate Indictment, Gary Payton pled guilty to possession with intent to distribute methamphetamine and was sentenced to imprisonment for 72 months on June 6, 2023.
This case was investigated by the Lancaster County Sheriff’s Office, the Lincoln Police Department, and the Lincoln/Lancaster County Drug Task Force.
Las Cruces Man Pleads Guilty to Commissioning a Murder-for-HireRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Jeffrey C. Boshek II, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, announced today that Leif Everett Hayman pled guilty to one count of use of interstate commerce facilities in the commission of murder-to-hire. Hayman, 33, of Las Cruces, will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury indicted Hayman on July 20, 2022. According to publicly available court records, between April 10, 2022, and continuing through May 11, 2022, Hayman solicited a hitman to murder his girlfriend's mother by submitting three service requests on the website "rentahitman.com." In his first service request, Hayman stated that he wanted to “hurt” the victim and wrote “I want her gone now, too much that I don’t like about her she’s controlling my wife.” As part of these service requests, Hayman provided the website with the identity of the intended victim including the victim's physical address and photographs of the victim and stated, “this is the target person if you don’t do it I will do it myself I’m already thinking about just doing it myself I want her gone now.” Following those three service requests, Hayman sent numerous follow-up emails to the website between April 20 and May 2, 2022. In those emails, Leif expressed that he was losing patience with how long the process was taking.
On May 5, 2022, an ATF agent, acting in an undercover capacity contacted Hayman. During the conversation, Hayman expressed that he wanted the victim “gone off the Earth.” The agent and Hayman discussed various ways to carry out the killing including the use of a gun, baseball bat, knives, and rocks. On May 6, 2022, Hayman followed up with the undercover agent via text message and provided him with the victim's physical address and a photograph. On May 9, 2022, Hayman had a telephone conversation with the undercover agent. During that call, Hayman indicated to the agent that he lived with staff and that the undercover agent/hitman would also have to harm his caretaker in order for him to leave the home. Hayman ultimately agreed to pay the undercover agent/hitman approximately $200 to murder the victim.
On May 11, 2022, the undercover agent went to Hayman’s house under the auspices of picking him up to carry out the hit on the victim. When the agent showed up, Hayman emerged from the residence with his caretaker in tow. Hayman indicated to the agent that he wanted something done to the caretaker and stated to the agent "this is part of the deal." The caretaker and Hayman began shoving each other and the undercover agent aborted the operation and drove away.
At sentencing, Hayman faces up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. Assistant U.S. Attorneys Maria Y. Armijo and Ry Ellison are prosecuting the case.
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Laredo felon admits to possessing cocaine and handguns inside homeRead the Press Release
LAREDO, Texas – A 47-year-old man has pleaded guilty to possessing over 800 grams of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
The investigation began in September 2022, when law enforcement learned Homero Flores was selling cocaine in the Laredo area. They later located several clear plastic baggies in in his trash that were consistent with the size and shape of how narcotics would be stored for street-level sale. Authorities also found multiple handwritten notes on paper towels that contained weights, prices and terminology - all consistent with the sale of street-level quantities of cocaine.
A search of his home resulted in the discovery of a plastic bag containing what was determined to be 850 grams of cocaine as well as two firearms.
Flores has a 2012 conviction for conspiracy to possess with intent to distribute 500 grams or more of cocaine. As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law.
U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that time, Flores faces up to 40 years in federal prison and a possible $5 million maximum fine.
Flores will remain in custody pending that hearing.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department’s Narcotics Division conducted the investigation with assistance from Homeland Security Investigations and Border Patrol. Assistant U.S. Attorney Brian Bajew is prosecuting the case.
This case is being prosecuted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF is the largest anti-crime task force in the country. 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 on the Department of Justice’s OCDETF webpage.
Lakeland Man Pleads Guilty to Cocaine OffenseRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces that Christian Noel Medina Torres (35, Lakeland) has pleaded guilty to possession with the intent to distribute 5 kilograms or more of cocaine. Medina Torres faces a minimum mandatory penalty of 10 years in federal prison. His sentencing hearing is set for May 7, 2024.
According to the plea agreement, an undercover agent with Homeland Security Investigations (HSI) arranged to sell Medina Torres 10 kilograms of cocaine in exchange for two Can-Am off-road vehicles and any cash Medina Torres could provide. On April 17, 2023, Medina Torres arrived in Volusia County with the two off-road vehicles and approximately $6,000 in cash. In exchange, the undercover agent provided Medina Torres a bag containing 10 kilograms of cocaine. After Medina Torres took the bag and began walking away, he was taken into custody.
This case was investigated by Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorneys Courtney D. Richardson-Jones and Megan Testerman.
Kroger, Harris Teeter Pharmacies in Charlottesville to Pay U.S. $1.3 MillionRead the Press Release
CHARLOTTESVILLE, Va. – A Kroger Pharmacy and a Harris Teeter Pharmacy in Charlottesville, Virginia have both agreed to pay the United States a combined total of $1.3 million to settle civil claims that the stores violated the Controlled Substances Act (CSA).
“We have seen a record number of Americans lose their lives in recent years as a result of opioid poisoning,” United States Attorney Christopher R. Kavanaugh said today. “This epidemic remains ongoing, and we know that many individuals struggling with addiction are obtaining opioids and other addictive drugs from pharmacies who choose to look the other way. My Office continues to work with the DEA and others to hold accountable any pharmacy or doctor who illegally prescribes these highly-addictive and dangerous drugs.”
“Healthcare providers, including pharmacies, have a vital responsibility when it comes to dispensing medications to meet the health needs of their patients. Our goal is to ensure that healthcare providers are equipped with the necessary tools and knowledge to deliver high-quality care to their patients, while also preventing the diversion and misuse of prescription drugs for the safety and well-being of our citizens,” said Jarod A. Forget, Special Agent in Charge, DEA Washington Division.
Specifically, the United States contends the two pharmacies violated the CSA at least 160 times between February 2018 and April 2021 by filling invalid prescriptions for opioids and benzodiazepines that were written by a physician clearly acting outside the scope of his medical practice, and pharmacists at both locations should have known this information and refused to fill those illegal prescriptions.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Special Agent in Charge Jared A. Forget of the Drug Enforcement Administration - Washington Division made the announcement.
Assistant U.S. Attorney Justin Lugar and the DEA Richmond District Office investigated the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Justice Department and Federal Partners Recognize Zero Tolerance Day for Female Genital MutilationRead the Press Release
The Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) joined federal partners, including U.S. Immigration and Customs Enforcement’s Human Rights Violators and War Crimes Center (HRVWCC) and the FBI’s International Human Rights Unit (IHRU), non-governmental organizations (NGOs), and others today in recognizing the International Day of Zero Tolerance for Female Genital Mutilation (FGM).
“Female genital mutilation, a form of gender-based violence and child abuse, will not be tolerated today — or any day — in the United States,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Justice Department and our law enforcement partners remain committed to holding perpetrators accountable and to providing support for victims of FGM using every tool available to us.”
“Female genital mutilation is a devastating crime affecting the lifelong emotional and physical wellbeing of survivors,” said Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division. “Ending this human rights abuse will take a multidisciplinary approach from law enforcement, including community outreach, education, and training. Today and every day, the FBI stands with women and girls against FGM and all forms of violence.”
“This international observance provides an opportunity to recognize this global issue, while raising awareness of those whose lives have been claimed or who have suffered life-long effects from this abhorrent practice,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “HSI, along with our global partners, is dedicated to ending this practice, advocating for victims, and bringing perpetrators to justice.”
Federal law enforcement agencies have engaged in many initiatives aimed at protecting those in the United States who have been subjected to, or who may be at risk of, FGM:
- The Justice Department’s Office of Victims of Crime awarded over $5 million in 2020 and 2021 in three-year grants through a grant program to support community projects designed to increase direct services, education, and community partner engagement to stop the victimization of women and girls through FGM. For more information, please see www.ojp.gov/sites/g/files/xyckuh241/files/media/document/ojp-news-10302020.pdf.
- Federal law enforcement authorities actively investigate allegations of FGM within the United States and abroad. Agencies collect tips and leads from the public and partner with NGOs that will relay information if they suspect a child is in imminent danger of being subjected to FGM or taken out of the country for purposes of FGM. Individuals suspected of FGM may be investigated by the HRVWCC and prosecuted by the Justice Department as appropriate.
- The FBI’s IHRU proactively conducts outreach to NGOs and provides frequent trainings to educate both the public and the FBI workforce on the FGM violation. These trainings provide awareness to the public about this form of abuse, which is a federal crime, as well as provide the FBI workforce the necessary tools to investigate and prevent instances of FGM.
- The Justice Department’s Office on Violence Against Women (OVW) administers federal grant funding authorized under the Violence Against Women Act to prevent and address sexual assault, domestic violence, and stalking. Funds from certain OVW grant programs may be used by grantees to provide culturally specific victim services and responses to FGM.
- HSI launched Operation Limelight USA, a premier FGM outreach and education program, in 2017, which has been recognized domestically and internationally as a critical outreach effort to combat FGM by the Women in Federal Law Enforcement and the World Class Policing Awards. Examples of other agency initiatives aimed at protecting women and girls at risk of FGM can be found in the STOP FGM Act 2022 Annual Report of the Attorney General.
FGM is a form of child abuse, a serious human rights violation, and, since 1996, a federal crime in the United States. In 2013, Congress amended the federal FGM statute, 18 U.S.C. § 116, to prohibit taking a girl out of the United States for the purpose of performing FGM. In 2021, the STOP FGM Act 2020 was signed into law, strengthening existing law by expanding the scope of punishable acts and increasing the maximum penalty. Violations of this law may result in imprisonment and potential removal from the United States.
According to UNICEF, more than 200 million women and girls have been subjected to FGM, which refers to procedures that injure the female genital organs for non-medical reasons. While primarily concentrated in North, West, and Central Africa, as well as parts of the Middle East and Asia, FGM also occurs in the United States.
Established in 2008, the HRVWCC furthers HSI’s efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, FGM, and the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians, and analysts who direct the agency’s broader enforcement efforts against these offenders.
Members of the public who have information about victims or suspected perpetrators engaging in FGM or other human rights abuses are urged to call the FBI tip line at 1-800-CALL-FBI (800-225-5324) or the HSI tip line at (866) 347-2423. To submit a tip online, visit tips.fbi.gov or the HSI online form. Tips may be provided anonymously.
Johnson County Man Convicted of Methamphetamine TraffickingRead the Press Release
LONDON, Ky. – A Hagerhill, Ky., man, Gary Warick, 57, was found guilty on Tuesday, by a federal jury sitting in London, of conspiracy to distribute 50 grams or more of methamphetamine, one count of distribution of 50 grams or more of methamphetamine, one count of distribution of methamphetamine, and one count of possession with intent to distribute 50 grams or more of methamphetamine.
According to evidence presented, on April 26, 2022 and again on May 3, 2022, law enforcement made two controlled purchases of methamphetamine involving Warick in Johnson County. Thereafter, on May 4, 2022, the execution of a seach warrant on Warick’s residence uncovered additional methamphetamine. Collectively, the purchases and search resulted in the seizure of more than 130 grams of methamphetamine. Warick had previously been convicted of trafficking in a controlled substance in the first degree in state court, in 2010.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, announced the conviction.
The case was investigated by the FBI and Kentucky State Police. The United States was represented in the case by Assistant U.S. Attorney Justin Blankenship.
Warick is scheduled to appear for sentencing on a date yet to be determined. He faces a minimum of 15 years, up to life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.
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Illinois Man Indicted for Multi-Million Dollar Ponzi SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Alan John Hanke, the sole member of IOLO Capital (IOLO), was arraigned before United States Magistrate Judge Joseph A. Marutollo on a nine-count indictment charging him with securities fraud conspiracy, wire fraud conspiracy, money laundering conspiracy, wire fraud, bankruptcy fraud, and filing a false bankruptcy declaration, in connection with schemes to induce investors to purchase speculative investments, to misappropriate the funds, and then to use the bankruptcy system to discharge his debts to his victims. Hanke was arrested on January 25, 2024, in Cape Canaveral, Florida, as he was boarding an international cruise. The defendant made his initial appearance on January 26, 2024 in United States District Court for the Middle District of Florida and was released on a $250,000 bond.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and David Walker, Special Agent-in-Charge, FBI, Tampa Field Office, announced the arrest and charges.
“As alleged, the victims trusted Hanke with millions of dollars for what they were assured would be safe investments,” stated United States Attorney Peace. “In reality, the defendant deceived the victims and used their money to enrich himself with vacations and a luxury car, and then sought to abuse bankruptcy proceedings to shield his ill-gotten gains. This Office will hold the defendant accountable for his criminal acts of greed and dishonesty and seek justice for his victims.”
Mr. Peace thanked the Office of the United States Trustee for the Northern District of Illinois and the United States Attorney’s Office for the Middle District of Florida for their assistance in the matter.
"Alan Hanke took a gamble by allegedly defrauding investors out of millions of dollars, which he ultimately used to fund his own personal expenses while also lying to bankruptcy court. Hanke’s luck eventually ran out. He will now be forced to answer for his alleged false promises, lies, and misrepresentations. You can bet the FBI will continue to make sure swindlers face just punishment for their attempted frauds," stated FBI Assistant Director-in-Charge Smith.
As alleged in the indictment, between November 2018 and August 2021, Hanke persuaded numerous investors, often in meetings in New York City, to invest in IOLO or related Hanke-run companies. Hanke promised investors high returns within short periods of time by investing in, among other things, “standby letters of credit,” “medium term notes,” and “high yield bonds.” Hanke also assured investors that their investments would be insured against losses. However, nearly all of the money that the victims invested with Hanke went to the defendant’s personal expenses, including cruises, airfare, hotels, gambling expenses, and a luxury car. Hanke also paid co-conspirators and other investors with money that he wrongfully obtained during the scheme. The indictment further alleges that Hanke filed a bankruptcy petition in June 2021 in Illinois, in which he sought to discharge the debts that he owed to his victims. In the bankruptcy petition, Hanke disclosed that he was paid monthly Social Security and Disability checks, but did not disclose the millions of dollars of income he received from his victims. Hanke also did not disclose the proceeds from the sale of an airplane, or that he used the proceeds for personal expenses, including gambling and repairs to a close relative’s home, as well as $180,000 that was withdrawn in cash.
If convicted, Hanke faces a maximum sentence of 20 years’ incarceration on the wire fraud, wire fraud conspiracy, and money laundering conspiracy counts and five years’ imprisonment on the securities fraud conspiracy, bankruptcy fraud, and false bankruptcy declaration charges.
The charges in the indictment are allegations, and Hanke is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Unit. Assistant United States Attorneys Nicholas J. Moscow and Matthew Skurnik are in charge of the prosecution, with assistance from Paralegal Specialist Madison Bates.
The Defendant:
ALAN JOHN HANKE
Age: 50
Crystal Lake, IllinoisE.D.N.Y. Docket No. 24-CR-27 (RER)
Houstonians charged in series of early morning diner robberiesRead the Press Release
HOUSTON – Three men have been indicted on multiple crimes in relation to violent armed robberies of local restaurant chains, announced U.S. Attorney Alamdar S. Hamdani.
Christopher Djuan Roberts, 27, and Xavier Edward Jones, 28, both of Houston, are set to appear for their detention hearings at 10 a.m. before make their initial appearances before U.S. Magistrate Judge Peter Bray. Wesley James Thomas, 29, currently in custody in another jurisdiction, will make his initial appearance in Houston in the near future.
The indictment, returned Jan. 24, alleges interference with commerce by threat or force, brandishing of a firearm in relation to a crime of violence and felon in possession of a firearm.
In the early morning hours of Oct. 15, 2023, the three men allegedly robbed a Waffle House located at 635 Rankin Road. Immediately after the robbery, the trio proceeded to rob a Denny’s located at 11320 North Freeway, according to the charges. During both robberies, the men allegedly brandished handguns while taking money from Waffle House employees and both employees and customers of Denny’s.
Roberts and Thomas are both convicted felons and are prohibited from possessing a firearm per federal law.
If convicted of brandishing of a firearm in relation to a crime of violence, the men face up to life imprisonment while the interference with commerce by threat or force carries a possible sentence of up to 20 years. Additionally, Roberts and Thomas face up to 15 years in prison if convicted for being felons in possession of a firearm. All charges also carry a possible penalty of up to $250,000.
The Bureau of Alcohol, Tobacco and Firearms (ATF) through the collaborative efforts of the ATF Strike Force conducted the investigation along with the Harris County Sheriff’s Office and Houston Police Department. Assistant U.S. Attorney Brian J. Hrach is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Hampton Man Pleads Guilty to Armed Bank RobberyRead the Press Release
NEWPORT NEWS, Va. – A Hampton man pleaded guilty today to robbing the Old Point National Bank in Hampton while holding a bank customer at knifepoint.
According to court documents, Delonta Wilson, 36, entered the Old Point National Bank located in downtown Hampton on the morning of October 16, 2023, armed with a knife. Wilson then approached an elderly customer from behind and held her at knifepoint while forcing her towards the teller’s counter. Wilson demanded currency from the bank tellers, while threatening to cut the customer’s throat if they did not comply. The tellers, in fear for the customer’s safety, provided the defendant with around $6,550 in United States currency.
Wilson is scheduled to be sentenced on June 6, and he faces a maximum penalty of 25 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Jimmie Wideman, Chief of Hampton Police, made the announcement after U.S. District Judge Jamar K. Walker accepted the plea.
Special Assistant U.S. Attorney Alyson C. Yates and Assistant U.S. Attorney Eric M. Hurt are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:23-cr-82.
Greensboro Man Pleads Guilty to Multiple Firearms Offenses Relating to Possession and Sale of Drop-in Auto Sears and Glock Conversion DevicesRead the Press Release
GREENSBORO –A Greensboro man pleaded guilty today to multiple firearms charges including one count of unlawfully dealing in firearms, one count of possession of a machinegun, and one count of trafficking in firearms, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina.
According to court documents, in 2023, MAHMOUD MAZEN ABU-DAMES, 24, was trafficking privately made firearms (PMFs) and machinegun conversion devices (MCDs) online using Telegram, an internet based, online messaging application. ABU-DAMES advertised the sale of 3-D printed drop-in auto sears, which are devices designed and intended to convert semi-automatic rifles into fully automatic machineguns, as well as Glock conversion devices, commonly referred to as “switches,” which are used to convert Glock pistols into fully automatic machineguns. In August of 2023, an undercover agent (UC) began communicating with ABU-DAMES through Telegram about purchasing drop-in auto sears and Glock conversion devices. ABU-DAMES agreed to sell the UC four to five drop-in auto sears and one Glock conversion device. When ABU-DAMES learned the UC lived in the Greensboro area, he insisted on leaving the package on Palmetto Trail, a walking trail located off Old Battleground Road in Greensboro. ABU-DAMES also included four dosage units of Xanax and asked the UC to find a market for them.
After the first transaction, ABU-DAMES offered to sell the UC two AR-15 pistol variants, along with two drop-in auto sears to convert them to fully automatic machineguns. He also offered to sell the UC another Glock conversion device or “switch.” ABU-DAMES described both firearms as “ghost guns” and noted that they did not have serial numbers. When the UC met with ABU-DAMES to conduct the second transaction, the UC saw that one of the firearms still had a serial number on it. The UC informed ABU-DAMES that he planned to traffic the firearm to Mexico and ABU-DAMES requested that the UC obliterate the serial number before doing so to ensure it would not be traced back to him. During this transaction, the UC was accompanied by a confidential informant (CI) who was a convicted felon. When the UC asked ABU-DAMES if it was legal for the CI to possess a firearm, ABU-DAMES told the UC it was not legal for the CI to have a firearm as a convicted felon but suggested that it would be better for the CI to carry the PMF rather than the serialized firearm since it had no identifiable markings. A few weeks later, one final transaction was conducted. In that transaction ABU-DAMES demonstrated how to install a Glock conversion device.
On October 2, 2023, agents with the Bureau of Alcohol Tobacco, Firearms, and Explosives executed a search warrant at ABU-DAMES’ residence. Agents recovered three 3-D printers, numerous firearms, dozens of MCDs, and two unmarked plastic bags containing green and blue tablets, identical to the suspected Xanax that ABU-DAMES previously included during his transactions with the UC.
Sentencing is scheduled to take place on July 26, 2024, at 11:00 a.m. in Winston-Salem, North Carolina, courtroom #4, before United States District Judge Loretta C. Biggs. At sentencing, ABU-DAMES faces a maximum sentence of fifteen years in prison, a period of supervised release of at least three years, fines, and other monetary penalties.
This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Greensboro Police Department, and the Federal Bureau of Investigation in New Jersey and is being prosecuted by Assistant United States Attorney Nicole R. DuPré.
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Fort Worth Woman Sentenced to 24 Years in Federal Prison for Drug TraffickingRead the Press Release
DEL RIO, Texas – A Fort Worth woman was sentenced in a federal court in Del Rio to 292 months in prison for her role in a conspiracy to import methamphetamine into the U.S.
According to court documents, Sally Renae Smith, 54, conspired with others to import 3.422 kilograms of methamphetamine which had a purity of 100%. Smith exchanged text messages with a co-conspirator trafficking methamphetamine into the U.S. from Mexico, instructing her to drive to her motel room in Del Rio once she made it through the point of entry.
Smith was arrested on September 8, 2020, and has remained in federal custody since her arrest. She pleaded guilty on July 21, 2021. Smith's three co-conspirators also pleaded guilty and remain in federal custody awaiting sentencing.
“This prison sentence of more than two decades is indicative of how serious we are in dismantling these drug trafficking organizations,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Thank you to our partners at Homeland Security Investigations for their work in the investigation of this case. Importing illicit drugs into this country has severe consequences, which, alongside our law enforcement partners, we will enforce.”
“HSI will continue to aggressively pursue narcotics traffickers,” said Special Agent in Charge Craig Larrabee for the HSI San Antonio Division. “Our work is not done, and our resolve in attacking the drug trade is as strong as ever. HSI will continue to investigate, arrest and prosecute those involved in narcotics trafficking to keep our communities safe.”
HSI investigated the case.
Assistant U.S. Attorney Rex Beasley prosecuted the case.
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Former Waukon Office Manager Sentenced to Federal PrisonRead the Press Release
A Waukon woman who embezzled over $200,000 from her employer was sentenced on February 1, 2024, to nine months in federal prison. Heather Leigh Migliore, age 52, received the prison term after a July 19, 2023 guilty plea to one count of wire fraud.
In a plea agreement, Migliore admitted that, between 2015 and 2021, she was the office manager of a tax preparation business that had offices in Waukon and Decorah in Winneshiek County, Iowa. Migliore wrote over 600 fraudulent checks for her own benefit from the business’s checking accounts without her employer’s knowledge or permission. Migliore also used one of the business’s credit cards to make over 200 fraudulent charges. The owner of the business had to use a home equity line of credit to pay its bills during this timeframe. In early 2021, Migliore also made false statements to the State of Iowa to obtain approximately $900 in federally funded, COVID-19 unemployment benefits.
Migliore was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Migliore was sentenced to nine months’ imprisonment. She was ordered to make $229,351 in restitution. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Migliore was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set. The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Winneshiek County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-1015.
Follow us on Twitter @USAO_NDIA.
Former FedEx Driver Sentenced for Selling Firearms He Stole from Packages on His TruckRead the Press Release
BOSTON – A Middleborough, Mass. man was sentenced to six days in prison for stealing and selling three firearms from FedEx packages he was responsible for delivering. The government recommended a sentence of 10 months in prison.
Frank P. O’Toole, 40, was sentenced on Feb. 2, 2024 by U.S. District Court Judge Angel Kelley to time served (six days) and three years of supervised release, during which period he must complete 250 hours of community service. On June 16, 2023, O’Toole pleaded guilty to two counts of possession or sale of a stolen firearm.
O’Toole previously worked as a FedEx delivery truck driver at a facility in Middleborough. Between October 2021 and June 2022, O’Toole stole three packages sent from out-of-state which he was responsible for delivering, each containing a firearm – specifically, two rifles and a shotgun – intended for a Federal Firearms Licensee. O’Toole subsequently sold the three firearms to an undercover agent during two separate controlled purchases on Aug. 9, 2022 and Aug. 12, 2022.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Middleborough Police Chief Joseph Perkins made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit prosecuted the case.
Final man sent to prison in cocaine car battery conspiracyRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Mexican national has been sentenced for conspiring to traffic cocaine across the border, announced U.S. Attorney Alamdar S. Hamdani.
Juan Andres Rodriguez-Murillo pleaded guilty Nov. 1, 2023, to conspiring with others to smuggle narcotics into the United States by concealing the drugs inside car batteries.
U.S. District Judge Nelva Gonzales Ramos has now ordered Rodriguez-Murillo to serve 60 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted the consequences for individuals who choose to get involved in drug smuggling.
Mikeal Jovany Phillips, 36, Huffman, and Christopher Sheffield, 39, Crosby, were previously sentenced to 40 and 48 months in federal prison, respectively, both to be immediately followed by four years of supervised release.
On Jan. 6, 2023, Sheffield drove a gold SUV to the Border Patrol (BP) checkpoint near Sarita. Upon inspection, authorities discovered approximately 2.8 kilograms of cocaine hidden inside the battery compartment. The battery shell contained a smaller battery to power the vehicle and three bundles of cocaine.
The investigation revealed numerous text and Facebook messages between Sheffield and Phillips discussing the trip.
Subsequently, authorities learned Phillips had coordinated the trip and arranged for Sheffield to travel from the Houston area to Brownsville to retrieve the cocaine. While in Brownsville, Sheffield met Rodriguez-Murillo who then provided the cocaine-filled car battery and installed it in the vehicle.
Rodriguez-Murillo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and BP conducted the investigation.
Assistant U.S. Attorney Ashley Martin prosecuted the case.
Federal Jury Finds Convicted Felon Guilty in String of Armed Business RobberiesRead the Press Release
Memphis, TN – A federal jury delivered a guilty verdict recently in the case of a Memphis man charged with committing a series of armed robberies in summer 2022. Marchello Moore, 43, faces a mandatory minimum of 200 years in federal prison given his prior conviction in a similar case. United States Attorney Kevin Ritz announced the verdict today.
According to information presented in court, on March 7, 2022, Moore escaped from Dismas Charities Halfway House where he had been serving the remainder of a 10-year federal sentence. Moore then conducted a series of armed robberies of local businesses:
- July 26, 2022: Circle K, 4010 Austin Peay Highway, Memphis, Tennessee.
- August 27, 2022: Subway Restaurant, 3647 South Mendenhall Road, Memphis, Tennessee.
- August 31, 2022: Half Off Shoes, 3625 Hickory Hill Road, Memphis, Tennessee.
- September 4, 2022: Circle K, 4010 Austin Peay Highway, Memphis, Tennessee.
- September 4, 2022: Dollar Tree, 3685 Lamar Avenue, Memphis, Tennessee.
- September 10, 2022: Mapco, 1505 East Brooks Road, Memphis, Tennessee.
- September 12, 2022: Circle K, 2678 Getwell Road, Memphis, Tennessee.
- September 12, 2022: Mapco, 5325 Summer Avenue, Memphis, Tennessee.
- September 16, 2022: Circle K, 2678 Getwell Road, Memphis, Tennessee. The defendant attempted to rob the store but fled the scene before getting any money. Moore then led the Memphis Police Department on a 40-minute high-speed chase before his arrest.
After a six-day jury trial, Moore was convicted on February 5, 2024 of eight counts of robbery, one count of attempted robbery and eight counts of use of a firearm during and in relation to a crime of violence.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Elizabeth Rogers and Assistant United States Attorney Eileen Kuo, who prosecuted this case, as well as law enforcement partners who investigated the case.
Federal Jury Convicts Former Baltimore City State’s Attorney Marilyn MosbyRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Marilyn J. Mosby, age 44, of Baltimore, Maryland, on the federal charge of making a false mortgage application when she was Baltimore City State’s Attorney, relating to the purchase of a condominium in Long Boat Key, Florida. The jury acquitted her of making a false mortgage application related to her purchase of a home in Kissimmee, Florida.
The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
U.S. Attorney Erek L. Barron said, “We humbly respect the court’s considered rulings, opposing counsels’ zealous advocacy, and the wisdom of both jury verdicts in this case and we remain focused on our mission to uphold the rule of law.”
“Ms. Mosby’s conduct undermines the confidence the public deserves to have in their government officials," said Acting Special Agent in Charge R. Joseph Rothrock of the FBI's Baltimore Field Office. "The jury’s decision holds Ms. Mosby accountable for disregarding the laws she swore to uphold. The FBI works diligently to ensure that anyone who engages in fraud and corruption will be held accountable for their bad acts.”
According to the evidence presented at trial, in February 2021, Mosby made a false statement in an application for a $428,400 mortgage to purchase a condominium in Long Boat Key, Florida. As part of the application, Mosby falsely stated that she had received a $5,000 gift from her husband to be applied to the purchase of the property. According to the evidence presented at trial, Mosby made this statement in order to secure a lower interest rate. According to the evidence presented at trial, Mosby did not receive a $5,000 gift from her husband, but rather transferred $5,000 to him, and he then transferred the $5,000 back to her.
Mosby faces a maximum of 30 years in federal prison for making a false mortgage application.
On November 9, 2023, Mosby was previously convicted on two counts of perjury, relating to the withdrawal of funds from the City of Baltimore’s Deferred Compensation Plan claiming that she suffered adverse financial consequences during the COVID-19 pandemic while she was Baltimore City State’s Attorney. Mosby faces a maximum sentence of five years in federal prison for each of the two counts of perjury.
U.S. District Judge Lydia K. Griggsby has not yet scheduled a sentencing date in either of Mosby’s pending federal cases.
U.S. Attorney Erek L. Barron commended the FBI and IRS-CI agents for their work in the investigation and thanked the Baltimore City Office of the Inspector General for its assistance. Mr. Barron praised Assistant U.S. Attorneys Sean R. Delaney and Aaron S.J. Zelinsky, for their focus and hard work throughout 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 and https://www.justice.gov/usao-md/community-outreach.
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Federal Grand Jury Indicts Louisville Man for Conspiracy to Distribute Fentanyl, Cocaine, and Heroin, Possession with Intent to Distribute Fentanyl, Possession of a Machinegun, and Possession of Firearms in Furtherance of Drug TraffickingRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned a four-count indictment on February 6, 2024, charging a local man with conspiracy to distribute fentanyl, cocaine, and heroin, possession with the intent to distribute fentanyl, possession of a machinegun, and possession of firearms in furtherance of drug trafficking.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, U.S. Postal Inspector in Charge Lesley Allison of the Pittsburgh Division, and Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division made the announcement.
According to the indictment, between October 1, 2023, and January 31, 2024, Tyrone Bunzy Jr. conspired to distribute fentanyl, cocaine, and heroin. Additionally, between October 23, 2023, and January 31, 2024, Bunzy Jr. possessed with the intent to distribute fentanyl.
On January 31, 2024, Bunzy Jr. possessed a machinegun, that is a Glock Switch, which was attached a firearm he possessed. A Glock Switch device allows a semi-automatic handgun to function as an automatic and is defined as a machine gun under federal law.
Finally, between January 16, 2024, and January 31, 2024, Bunzy Jr. carried and possessed firearms in furtherance of and in relation to his drug trafficking.
Today Bunzy Jr. was arraigned before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. He remains detained pending trial. If convicted, he faces a minimum sentence of 5 years and a maximum sentence of 55 years in prison. A federal district court judge will determine any sentence after considering the advisory sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the DEA and USPIS, with assistance from the ATF.
Assistant U.S. Attorney Joe Ansari is prosecuting this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Father and daughter convicted of financial fraud related to pandemic relief funds, public housingRead the Press Release
CINCINNATI – A father and daughter have each been convicted of federal crimes related to financial fraud.
India Cook, 37, of Cincinnati, pleaded guilty in U.S. District Court today to four counts of making false statements on COVID-relief loan applications.
Rodney Cook, 56, of Cincinnati, pleaded guilty in August 2023 to two counts of making false statements on COVID-relief loan applications and Department of Housing and Urban Development (HUD) documents.
According to court documents, in 2020 and 2021, India Cook filed fraudulent applications for COVID-19 Economic Injury Disaster loans (EIDL) and Paycheck Protection Program (PPP) loans.
Specifically, she submitted applications that were false and contradicted each other for several different companies, including C&H Tax Service, ADMR Shoes, Tax Lab LLC and Care 4 U. India Cook ultimately received nearly $144,000 in fraudulent loans.
Rodney Cook prepared and submitted an application for AMP Clothing LLC (his daughter’s company) to receive pandemic related funds. AMP Clothing was not operating and did not have any employees or revenue at the time. He ultimately received and fraudulently spent more than $205,000 in EIDL and PPP loans.
In a separate scheme, Cook purchased rental properties through a Department of Housing and Urban Development (HUD) program that was exclusively for owner-occupants who planned to live in the purchased property. Cook used “straw buyers” to purchase HUD properties in Cincinnati that he then rented out.
Rodney Cook was sentenced in January 2024 to pay full restitution, a $7,500 court fine and to serve three years of probation. India Cook will be sentenced at a later date.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Karen Wingerd, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI); the department of Housing and Urban Development-Office of Inspector General (HUD-OIG) and Cincinnati Police Chief Theresa A. Theetge announced the guilty plea entered today before U.S. District Judge Jeffery P. Hopkins. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.
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Corpus Christi man sent to prison for conspiring to traffic machine guns across state linesRead the Press Release
CORPUS CHRISTI, Texas – A 23-year-old Corpus Christi man has been sentenced for conspiracy to traffic firearms, specifically machine gun conversion devices (MCDs), in interstate commerce, announced U.S. Attorney Alamdar S. Hamdani.
Rene Saldana pleaded guilty Sept. 14, 2023.
U.S. District Judge Nelva Gonzales Ramos has now handed Saldana a 36-month term of imprisonment to be immediately followed by two years of supervised release.
“MCDs, commonly known as “Glock switches,” present a unique and insidious threat to our communities – criminals can conceal something as small as a paperclip, install it in a legal gun, quickly converting the legal handgun into a machinegun, capable of firing hundreds of rounds of ammunition per minute,” said Hamdani. “This case involved an individual making MCDs in his home and then selling them to the highest bidder, without regard to where or how those MCDs would be used. From 2017 to 2021, the number of MCDs seized by law enforcement rose 570%. And with MCDs often ending up in the hands of dangerous criminals, gang members and cartel assassins, the Southern District’s prosecutors are doing everything they can to keep these types of weapons off the streets.”
“The illegal manufacturing of MCDs present a great danger to our communities,” said Acting Special Agent in Charge Francisco Ortega of the Houston Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Holding illegal firearm possessors accountable through federal prosecution is one of our highest priorities and ATF will continue to pursue those who endanger the public with the illegal possession or use of conversion devices.”
In May and June 2023, Saldana was discussing selling firearms and MCDs – devices that can be attached to existing legal firearms to turn them into machine guns. The attachments alter the firing mechanism of the guns so they can fire multiple shots automatically. These MCDs are considered machine guns under the law and are illegal to possess.
Saldana agreed to make and sell six MCDs for $1000 total. Saldana tested the MCDs to ensure they worked as intended and made the firearm function as an automatic weapon. He then arranged for a co-defendant to deliver the MCDs to a person he believed was smuggling them to another state. Saldana confirmed the sale via Snapchat and made plans for another, larger sale in the future.
Authorities recovered all six MCDs Saldana sold. At the time of his arrest, they also recovered a 3-D printer he was using to make the devices, as well as thirteen more MCDs in various stages of completion.
Saldana was permitted to remain on bond pending sentencing.
ATF conducted the investigation. Assistant U.S. Attorneys Ashley Martin and John Marck prosecuted the case.
Chicago-Area Man Pleads Guilty to Role in Nationwide Fraud ConspiracyRead the Press Release
BOSTON – A Chicago-area man has pleaded guilty in federal court in Springfield, Mass. to his role in a nationwide wire fraud conspiracy that victimized businesses and individuals across the United States.
Demario Sorrells, 38, of Rockford, Ill., pleaded guilty on Feb. 2, 2024 to one count of conspiracy to commit wire fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 28, 2024. Sorrells was initially indicted by a federal grand jury in December 2020 along with five co-defendants, including rap promoter Antonio Strong and rap artist Herbert Wright.
According to court documents, beginning in at least March 2017 through November 2018, Sorrells, Wright and, allegedly, their co-defendants conspired to defraud numerous businesses and individuals throughout the United States by using unauthorized and stolen payment card account information of real individuals – including the actual cardholders' names, addresses, security codes and account expiration dates. Generally, because the payment card information was authentic, the defrauded businesses and individuals successfully processed the fraudulent transactions and provided the goods and services to Wright and his alleged co-conspirators. The actual cardholders discovered these transactions on their accounts and disputed the charges with their card companies who then charged back the transactions to the businesses and individuals, which consequently suffered losses in the amounts of the unauthorized transactions.
According to court filings, on certain occasions, Strong obtained valuable goods and services for the benefit of Sorrells, including private jet flights, luxury accommodations and elite automobile rentals. On other occasions, Strong contacted Sorrells to obtain illicit account information and Sorrells provided Strong with illicit account information that he obtained from the dark web. On other occasions, Strong sometimes paid Sorrells in exchange for the illicit account information. Sorrells knew the illicit account information was stolen data. In total, Sorrells was responsible for $106,000 in victim losses.
On Jan. 11, 2024, Wright was sentenced to three years’ probation and was ordered to pay restitution and forfeiture of $139,968 each, as well as a $5,500 fine. In July 2023, he pleaded guilty to one count of conspiracy to commit wire fraud and one count of making a false statement to a federal official.
The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office and Trial Attorneys Andrew Tyler and Kyle Crawford of the Justice Department’s Criminal Division’s Fraud Section are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bronx Man Arrested for Sweepstakes Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of DONALD DILLION on wire fraud and money laundering charges arising out of a scheme to defraud victims by convincing them that they had won prizes in a sweepstakes sponsored by a well-known marketing and sweepstakes company (the “Sweepstakes Company”). DILLION was arrested on February 3, 2024, at John F. Kennedy International Airport while attempting to enter the United States from Jamaica. DILLION was presented before U.S. Magistrate Judge Barbara Moses yesterday.
U.S. Attorney Damian Williams said: “As alleged in the Complaint, Donald Dillion defrauded numerous victims, who were lured into thinking that they had won life-changing prizes in a well-known sweepstakes. Through their lies, Dillion and others allegedly convinced these victims that they would only receive their prizes if they first parted with tens of thousands of dollars in supposed taxes and fees. Dillion then allegedly laundered these funds by sending them to a foreign bank. My Office will prosecute these crimes to the fullest to demonstrate that fraud schemes like Dillion’s simply do not pay.”
FBI Assistant Director in Charge James Smith said: “Winning a significant amount of cash or a luxury car through a sweepstakes often represents a dream to many Americans. Donald Dillion turned his victims’ dream into a nightmare when he allegedly stole tens of thousands of dollars through his fraudulent scheme. The FBI will continue to investigate and bring to justice anyone attempting defraud innocent people.”
According to the allegations in the Complaint:[1]
At least in or about 2021, DILLION, working with others, perpetrated a scheme in which victims were contacted by individuals claiming to work for the Sweepstakes Company, who convinced the victims that they had won a large cash prize and a luxury car as part of the Sweepstakes Company’s sweepstakes. The perpetrators of the scheme told the victims that their prizes would be released to them upon the Sweepstakes Company’s receipt of, among other things, the taxes and fees purportedly owed on the prizes. In this way, numerous victims were induced to wire tens of thousands of dollars to bank accounts held in the name of DD Metro Solutions LLC (“DD Metro”) and controlled by DILLION. DILLION wired a significant proportion of these victim funds to a Chinese bank, including memoranda with some of these wires suggesting no connection to the Sweepstakes Company. None of the victims received the cash prizes or luxury cars promised to them.
* * *
DILLION, 57, of the Bronx, New York, has been charged with conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI.
The prosecution of this case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin A. Gianforti and Jennifer Ong are in charge of the prosecution.
The charges in the Complaint are merely accusations, and DILLION is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Activity in the U.S. Attorney's OfficeRead the Press Release
Violent Crime
Dennis Bryce Bearing, age 42, of Arapahoe, Wyoming, was sentenced to 51 months’ imprisonment for assault by strangulation. U.S. District Court Judge Alan B. Johnson imposed the sentence on Feb 5. According to court documents, on Oct. 18, 2023, Bureau of Indian Affairs police were contacted regarding a domestic assault. Upon interviewing the victim, officers learned that Bearing had attacked the victim by punching, kicking, then strangling her. The crime was investigated by the Bureau of Indian Affairs. The case was prosecuted by Assistant U.S. Attorney Michael J. Elmore.
Drug Trafficking and Illegal Possession of a Firearm
Robert Brady Anthony, age 60, of Bern, Idaho, was sentenced to 48 months in federal prison for being a felon and unlawful user of a controlled substance in possession of a firearm. Chief U.S. District Court Judge Scott. W. Skavdahl imposed the sentence on Feb. 5. According to court documents, on Sept. 12, 2022, the Evanston Police Department responded to the Days Inn for a medical call. Officers found Anthony in need of medical attention for a suspected overdose. Officers eventually found heroin, methamphetamine, and marijuana, along with a pistol and ammunition. Anthony has several prior felony convictions and is therefore prohibited from possessing a firearm. He pled guilty to the charges on Sep. 12, 2023. This crime was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Evanston Police Department. The case was prosecuted by Assistant U.S. Attorney Jonathan C. Coppom.
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
70 Current and Former NYCHA Employees Charged with Bribery and Extortion OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”); Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); Rae Oliver Davis, the Inspector General of the U.S. Department of Housing and Urban Development, Office of Inspector General (“HUD OIG”); and Jonathan Mellone, the Special Agent in Charge of the Northeast Region of the U.S. Department of Labor, Office of Inspector General (“DOL-OIG”), announced the unsealing of bribery and extortion charges against 70 current and former employees of the New York City Housing Authority (“NYCHA”). 66 of the 70 defendants were arrested this morning in New York, New Jersey, Connecticut, and North Carolina. Defendants who were arrested in the New York area are scheduled to appear before U.S. Magistrate Judges Stewart D. Aaron, Sarah L. Cave, Valerie Figueredo, Sarah Netburn, Katharine H. Parker, Gary Stein, and Ona T. Wang in Manhattan federal court later today.
U.S. Attorney Damian Williams said: “Instead of acting in the interests of NYCHA residents, the City of New York, or taxpayers, the 70 defendants charged today allegedly used their jobs at NYCHA to line their own pockets. This action is the largest single-day bribery takedown in the history of the Justice Department. NYCHA residents deserve better. My Office is firmly committed to cleaning up the corruption that has plagued NYCHA for far too long so that its residents can be served with integrity and have the high-quality affordable homes that they deserve. The culture of corruption at NYCHA ends today."
Attorney General Merrick B. Garland said: “The Justice Department will prosecute to the fullest extent of the law those who abuse their positions in public service in order to enrich themselves. The crimes alleged in this case are serious violations of the public trust, and I am grateful to the agents and our partners across government who worked on this case, and to the prosecutors in the Southern District of New York for their tireless efforts to root out corruption.”
DOI Commissioner Jocelyn E. Strauber said: “As charged, these 70 current and former NYCHA supervisors and other staff used their positions of public trust and responsibility to pocket bribes in exchange for doling out no-bid contracts. The extensive bribery and extortion alleged here calls for significant reforms to NYCHA’s no-bid contracting process, which DOI has recommended and NYCHA has accepted. I thank the U.S. Attorney’s Office for the Southern District of New York and our federal law enforcement partners for their commitment to protect scarce public resources intended to maintain public housing, and to hold accountable public servants who abuse their authority, and NYCHA’s senior leadership for its cooperation in this important investigation.”
HSI Special Agent in Charge Ivan J. Arvelo said: “These 70 defendants are accused of demanding kickbacks and bribes for access to no-bid contracts and lucrative, under-the-table deals. Make no mistake, this alleged pervasive corruption had the biggest impact on NYCHA residents themselves, who may have been cheated out of better services and programs. I commend the outstanding work of HSI New York’s Document and Benefit Fraud Task Force for today’s historic operation. As one of the largest investigative agencies, the public can rest assured: Homeland Security Investigations will pursue all avenues of justice for the people of this great city.”
HUD OIG Inspector General Rae Oliver Davis said: “The pay-to-play bribery schemes alleged in the complaints unsealed today waste millions of dollars and risk residents staying in unacceptable living conditions. The alleged conduct identified during this investigation harms the effectiveness of housing programs that support more than 200,000 residents. It also poses a significant risk to the integrity of the HUD rental assistance programs that support housing assistance in New York City and erodes the trust of NYCHA residents in HUD’s programs. We will continue our work with the U.S. Attorney’s Office and our law enforcement partners to prevent and detect these and other schemes.”
DOL-OIG Special Agent in Charge Jonathan Mellone said: “An important part of our mission is to investigate corruption and fraud involving matters within the jurisdiction of the Office of Inspector General. We are committed to working closely with our law enforcement partners to investigate those who exploit governmental programs and the American workers.”
According to the allegations in the Complaints and publicly filed documents in these cases:[1]
NYCHA is the largest public housing authority in the country, providing housing to 1 in 17 New Yorkers in 335 developments across the City and receiving over $1.5 billion in federal funding from the U.S. Department of Housing and Urban Development every year. When repairs or construction work require the use of outside contractors, services must typically be purchased via a bidding process. However, at all times relevant to the Complaints, when the value of a contract was under a certain threshold (up to $10,000), designated staff at NYCHA developments could hire a contractor of their choosing without soliciting multiple bids. This “no-bid” process was faster than the general NYCHA procurement process, and selection of the contractor required approval of only the designated staff at the development where the work was to be performed.
The defendants, all of whom were NYCHA employees during the time of the relevant conduct, demanded and received cash in exchange for NYCHA contracts by either requiring contractors to pay up front in order to be awarded the contracts or requiring payment after the contractor finished the work and needed a NYCHA employee to sign off on the completed job so the contractor could receive payment from NYCHA. As alleged, the defendants typically demanded approximately 10% to 20% of the contract value—between $500 and $2,000 depending on the size of the contract—but some defendants demanded even higher amounts. In total, these defendants demanded over $2 million in corrupt payments from contractors in exchange for awarding over $13 million worth of no-bid contracts. The map below shows the developments affected by the alleged conduct:
If you believe you have information related to bribery, extortion, or any other illegal conduct by NYCHA employees, please contact [email protected] or (212) 306-3356. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at [email protected].
* * *
The names of the defendants, the charges against them, their ages, and their cities and states of residence are set forth below.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of DOI, HSI, HUD OIG, and DOL-OIG, which work together collaboratively as part of the HSI Document and Benefit Fraud Task Force, as well as the special agents and task force officers of the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams thanked the New York City Police Department and the U.S. Marshals Service for their assistance with today’s arrest operations. Mr. Williams also expressed appreciation for the cooperation and support of NYCHA’s senior executive leadership and thanked NYCHA Federal Monitor Bart Schwartz for his assistance with the investigation.
These prosecutions are part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
These cases are being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jerry J. Fang, Jacob R. Fiddelman, Meredith Foster, Catherine Ghosh, and Sheb Swett are in charge of the prosecutions.
The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Residence
Charges and Potential Maximum Prison Term
James Baez
58 years
Valley Stream, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Selwyn Barley
61 years
Brooklyn, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Gwendolyn Bell
38 years
Baldwin, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Nymiah Branch
44 years
Elmont, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Marc Buckner
54 years
Stroudsburg, PA
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Patrick Butler
58 years
Brooklyn, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Roberto Cartagena
48 years
Union City, NJ
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Vernon Chambers
45 years
Brooklyn, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Rigoberto Charriez, a/k/a “Ricky”
34 years
Toms River, NJ
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Hector Colon
45 years
Bronx, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Michael Davis
54 years
Groton, CT
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Victor De Los Santos
54 years
Bushkill, PA
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Mauricio Escobar
55 years
East Elmhurst, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Jose Espinal
57 years
Howard Beach, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Joseph Fuller
42 years
Brooklyn, NY
Conspiracy to Solicit and Receive a Bribe: 5 years
Solicitation and Receipt of a Bribe: 10 years
Conspiracy to Commit Extortion Under Color of Official Right: 20 years
Extortion Under Color of Official Right: 20 years
Manuel Garcia
59 years
Lecanto, FL
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Tuesdai Gaskin
57 years
Staten Island, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Corey Gilmore
45 years
Garnerville, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Lateisha Harley
48 years
Bronx, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Joy Harris
48 years
Bushkill, PA
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Jose Hernandez
57 years
New York, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Veronica Hollman
47 years
Brooklyn, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Deshon Hopkins
47 years
Bethlehem, PA
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Nena Huntley
36 years
Bronx, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Michael Johnson
58 years
Staten Island, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
George Kemp
49 years
Irvington, NJ
Conspiracy to Solicit and Receive a Bribe: 5 years
Solicitation and Receipt of a Bribe: 10 years
Conspiracy to Commit Extortion Under Color of Official Right: 20 years
Extortion Under Color of Official Right: 20 years
Jaime Lan, a/k/a “Jimmy”
57 years
Stewartsville, NJ
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Dexter Lino
51 years
Rockaway Park, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Nirmal Lorick
58 years
South Richmond Hill, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Tara Lucas
50 years
Linden, NJ
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Vincent Machado, a/k/a Vincent Arcelay
30 years
New York, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Marlon Mackey
51 years
Jamaica, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Danny Matos
48 years
Effort, PA
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Nakia McCoy
49 years
Brooklyn, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Erik McCreary
55 years
Far Rockaway, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Henry McPhatter
44 years
Bronx, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Joacim Mendez
47 years
Milford, CT
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Juan Mendez
52 years
Stroudsburg, PA
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Juan Mercado
49 years
West Babylon, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
James Miller
55 years
Stroudsburg, PA
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Daniel Muniz
64 years
Long Island City, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Denise Newby-Bovian
54 years
New York, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Alexis Nieves
41 years
Stratford, CT
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Raymond Nunez
56 years
Glendale, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Evelyn Ortiz
55 years
Freeport, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Brett Owens
49 years
New York, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Orlando Pardo
56 years
Maywood, NJ
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Jorge Perez
54 years
Bronx, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Curtis Priester
58 years
Bronx, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Eddie Quetell
57 years
Philadelphia, PA
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Carmen Rivera
53 years
Long Pond, PA
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Jaime Rivera
50 years
Bronx, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
John Rivera
56 years
Bronx, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Herbert Rosa
45 years
New York, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Dwarka Rupnarain
63 years
Middletown, NJ
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Chrisie Salter
46 years
Brooklyn, NY
Conspiracy to Solicit and Receive a Bribe: 5 years
Solicitation and Receipt of a Bribe: 10 years
Conspiracy to Commit Extortion Under Color of Official Right: 20 years
Extortion Under Color of Official Right: 20 years
Clarence Samuel
53 years
Irvington, NJ
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Tanisha Sands
51 years
Brooklyn, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Carolyn Scott
58 years
East Stroudsburg, PA
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Garth Small
55 years
Mount Vernon, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Charles Starks
57 years
Elmont, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Elizabeth Tapia
54 years
Pocono Summit, PA
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Alex Tolozano
57 years
Maywood, NJ
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Luis Torres
38 years
Bronx, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Segundo Torres
56 years
Blakeslee, PA
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Frankie Villanueva
51 years
Bronx, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Lindsay Wade
53 years
Brooklyn, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Angela Williams
64 years
Fayetteville, NC
Conspiracy to Solicit and Receive a Bribe: 5 years
Conspiracy to Commit Extortion Under Color of Official Right: 20 years
Destruction of Evidence: 20 years
False Statements: 5 years
Willie Williams
60 years
Staten Island, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
Calvin Wright
52 years
Brooklyn, NY
Solicitation and Receipt of a Bribe: 10 years
Extortion Under Color of Official Right: 20 years
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints set forth herein constitute only allegations, and every fact described therein should be treated as an allegation.
5 February 2024
“Wholesaler” of fake tags sentenced for selling hundreds of thousands of illegal Texas paper tagsRead the Press Release
HOUSTON – A 43-year-old woman has been sentenced for providing false information in order to access the state database to print illegal tags and then sell them to other sellers on the internet, announced U.S. Attorney Alamdar S. Hamdani.
Leidy Hernandez Lopez pleaded guilty May 10, 2023, to conspiring with others residing in the Southern District of Texas and elsewhere, to buy and sell thousands of fraudulent Texas-issued temporary buyer tags for cars in and outside of Texas without a legitimate vehicle purchase.
U.S. District Judge George C. Hanks Jr. has now ordered Lopez to serve 30 months in federal prison to be immediately followed by three years of supervised release. The court also ordered Hernandez Lopez to pay restitution to the Texas Department of Motor Vehicles in the amount of $316,820.
At the hearing, the court heard how she and others engaged in a widespread fraud to use fictitious car dealerships to generate and sell Texas temporary buyer tags without actually selling cars. In handing down the sentence, the court noted that while Lopez may not have known what the consequences of her actions were, she nonetheless placed peoples’ lives at risk by providing fake tags that were used in crimes such as drive by shootings.
“The harm in this case was more than monetary,” said Hamdani. “In selling fake vehicle tags to other sellers, Lopez provided criminals with the means to create ghost cars that were invisible to law enforcement which were used to commit crimes that posed a hazard to the public ranging from driving without insurance to committing robberies and drive-by shootings.”
Lopez and co-conspirators used the internet to buy and sell the fraudulent state-issued buyer tags and exchange proceeds from the illegal tag sales.
At the time of her plea, Lopez acknowledged she and her co-conspirators communicated via email where she would deliver fraudulent buyer tags to sellers who then re-sold them to purchasers all over the United States, including New York, Florida and Washington, D.C.
She also admitted she received fraud proceeds via electronic payment services such as Cash App and Zelle.
Lopez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Emmanuel Padilla Reyes aka Christian Hernandez Bonilla or Noel Rivera is still a fugitive in this case. The FBI is offering a $5,000 reward to anyone providing information that directly leads to his arrest. Those with information about the fugitive’s location should call 1-800-CALL-FBI or email www.TIPS.FBI.GOV
The FBI conducted the investigation with assistance of Travis County Precinct 3 Constable’s Office, Houston Police Department, Texas Department of Public Safety, Texas Department of Motor Vehicles, Harris County Sheriff’s Office, New York State Police and New York City Police Department. Assistant U.S. Attorneys Belinda Beek and Adam Goldman prosecuted the case.
‘Secretary’ to Mexican Mafia Shot Caller Sentenced to More Than 7 Years in Federal Prison for RICO Conspiracy and Aiding Armed RobberyRead the Press Release
LOS ANGELES – A La Verne woman was sentenced today to 85 months in federal prison for being a “secretary” to an imprisoned Mexican Mafia “shot caller” who controlled Latino gangs in Pomona, including facilitating an armed robbery and shooting, as well as distribution of narcotics and extortion.
Kelly Deshannon, 42, was sentenced by United States District Judge George H. Wu.
At the conclusion of a five-day trial, a federal jury in July 2023 found Deshannon guilty of one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, one count of committing a violent crime in support of racketeering activity (VICAR), and one count of using a firearm in furtherance of a violent crime.
Deshannon served as a secretary to Seferino Gonzalez, an imprisoned shot caller of the Michael Lerma Cell of the Mexican Mafia. From prison, Gonzalez exerted control over Latino gangs, including overseeing drug trafficking and other offenses committed in Pomona. As a secretary, Deshannon helped facilitate an attempted armed robbery of car keys to a Mercedes-Benz SUV on July 14, 2013, which resulted in the shooting of a victim. Deshannon knew the victims’ address, that the victims had access to the car keys, and had spoken to the victims. On the night of the shooting, Deshannon brought the shooter and other defendants with her to the victims’ address and pointed out a victim to her accomplices. The victim, though wounded, survived the attack.
Deshannon’s other criminal conduct included broking drug sales and collecting extortionate taxes in Lerma Cell territory.
Lerma, who is this case’s lead defendant, was indicted in 2018 and has pleaded not guilty to RICO conspiracy and multiple other federal charges. His trial is scheduled for July 23. He is in federal custody.
The FBI San Gabriel Valley Safe Streets Task Force investigated this matter. The FBI San Gabriel Valley Safe Streets Task Force was formed in 2008 and is based out of the Pomona Police Department. One of the primary missions of the FBI’s San Gabriel Valley Safe Streets Task Force is to work with the Los Angeles County Sheriff’s Department to combat, investigate, and dissuade gang violence from occurring within the Los Angeles County Jail and surrounding Los Angeles area. The Covina Police Department assisted in the investigation.
Assistant United States Attorneys Jason C. Pang of the Major Frauds Section and Varun Behl of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.