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Tuesday 19 December 2023
Colorado Man Arrested for Attempting to Provide Material Support to ISISRead the Press Release
Humzah Mashkoor, 18, of Westminster, Colorado, is charged with attempting to provide material support to a designated foreign terrorist organization and made his initial appearance in federal court today.
According to court documents, Mashkoor was arrested on Monday, Dec. 18 at the Denver International Airport before he could board a flight for the first leg of an overseas trip. According to the affidavit in support of the criminal complaint, Mashkoor was traveling to the United Arab Emirates, where he intended to stay until he continued on to either Afghanistan or Syria to serve as a fighter for ISIS.
The FBI Denver Field Office is investigating this case.
Assistant U.S. Attorney Laura Cramer-Babycz for the District of Colorado is prosecuting the case, with the assistance of Jennifer Levy of the National Security Division’s Counterterrorism Section.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Colombian national sentenced to 25 years in federal prison in drug trafficking conspiracyRead the Press Release
SHERMAN, Texas – A Colombian national has been sentenced to 25 years in federal prison for drug trafficking violations, announced Eastern District of Texas U.S. Attorney Damien M. Diggs today.
Leonar Molina-Ferro, also known as Michel, 47, was convicted of conspiracy to manufacture and distribute more than five kilograms of cocaine knowing it would be imported and distributed in the United States. Molina-Ferro was sentenced to 300 months in federal prison on December 19, 2023, by U.S. District Judge Amos L. Mazzant.
According to information presented in court, Molina-Ferro was a cocaine trafficker who assisted a Colombian-based drug cartel responsible for distributing large quantities of cocaine via land, sea, and air throughout South and Central America. The bulk of these shipments were destined for the United States. Molina-Ferro’s primary role was to coordinate maritime shipments of cocaine from Colombia to Panama, Costa Rica, Nicaragua, and Honduras. In his role, he directed several persons to acquire, transport, and distribute ton quantities of cocaine. Molina-Ferro was arrested at the request of the United States for extradition at his apartment in Medellin, Colombia on August 14, 2018. During the arrest operation, Molina-Ferro opened fire on Colombian National Police Officers, wounding the first officer to make entry into the apartment. That officer was subsequently honored by the Drug Enforcement Administration and U.S. Attorney’s Office in the Eastern District of Texas for his bravery in the fight against narcotics trafficking. Molina-Ferro was subsequently extradited to the United States from Colombia on December 2, 2020.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the Drug Enforcement Administration and the North Texas OCDETF Strike Force and prosecuted by Assistant U.S. Attorney Wes Wynne. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Judicial Attaché’s office at the U.S. Embassy in Bogota provided critical assistance in securing the arrest and extradition of Molina-Ferro.
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Collierville Man Pleads Guilty to Wire FraudRead the Press Release
Memphis, TN – A local commodity trader pled guilty in federal court yesterday to one count of wire fraud as part of a fraudulent commodities investment scheme. Donald Wray Rodgers, 55, operated an unregistered trading pool under the name Three Bridges Trading Fund. United States Attorney Kevin G. Ritz announced the guilty plea today.
According to information provided in court, Rodgers lied to investors about the money earned in the pool, providing them false fund performance statements and inflated investment returns. In fact, Rodgers’ trades were causing the fund to lose value each month. After less than one year in operation, Three Bridges Trading Fund was worthless, according to court documents. Rodgers’ criminal misrepresentations to his approximately fifty investors from around the United States led them to lose over $ 2,000,000 in the fund.
The FBI Memphis Field Office investigated this case.
Rodgers is set to appear before United States District Judge Thomas L. Parker for sentencing on March 21, 2024 at 1:30 pm. He faces a maximum penalty of 20 years in federal prison, a $250,000 fine, and three years of supervised release.
Assistant United States Attorney William C. Bateman III is prosecuting this case on behalf of the federal government.
Chula Vista Woman Admits Coordinating Alien Smuggling Through Otay Mesa Port of EntryRead the Press Release
NEWS RELEASE SUMMARY – December 19, 2023
SAN DIEGO – Ericka Aldana of Chula Vista pleaded guilty in federal court today, admitting that she managed all aspects of a human smuggling operation - from helping to place undocumented immigrants in trunks, to coaching drivers to successfully cross the Otay Mesa Port of Entry, to staging immigrants at a Chula Vista stash house, to helping transport them to their final destinations in the U.S.
Aldana admitted that she recruited at least five drivers, procured vehicles for their use, obtained passports for them, and coached them how to dress and how to answer questions by Customs and Border Protection officers. Aldana said she crossed the border in tandem with the drivers to direct them to what she considered the less risky border lanes.
Aldana acknowledged smuggling more than 25 aliens during a five-year span, some of whom paid as much as $10,000 to be smuggled into the United States.
“Ms. Aldana avoided getting caught for years, but she could not evade accountability forever,” said U.S. Attorney Tara K. McGrath. “Federal law enforcement brought a carefully choreographed network of cross-border human smuggling to justice today.”
“Human smuggling is a serious and dangerous offense,” said Sidney K. Aki, Director of Field Operations for Customs and Border Protection’s San Diego Field Office. “This effort was an outstanding demonstration of law enforcement partnership and commitment to dismantling criminal organizations that exploit vulnerable migrants for profit.”
“Human smuggling is driven by greed as the defendant demonstrated in this case,” said Chad Plantz, special agent in charge for HSI San Diego. “HSI and partnered law enforcement agencies will not stand for this deceitful and often violent act of human smuggling. We are committed to bringing down human smugglers one by one.”
The defendant is scheduled to be sentenced on March 15, 2024, at 9 a.m. before U.S. District Judge Cathy Ann Bencivengo.
This case is being prosecuted by Assistant U.S. Attorneys Julie A. Bauman and Michael A. Deshong.
DEFENDANTS Case Number 23cr2174-CAB
Ericka Aldana Age: 40 Chula Vista, California
SUMMARY OF CHARGES
Conspiracy to Bring in Aliens Without Presentation – Title 8, United States Code, Section 1324(a)(2)(B)(iii) and Title 18, United States Code, Section 371
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
Homeland Security Investigations
United States Customs and Border Protection
Chicago Businessman Convicted of Defrauding Financial Institutions out of $4 MillionRead the Press Release
CHICAGO — A federal jury has convicted a Chicago businessman of scheming to defraud multiple financial institutions out of $4 million.
DAVID IZSAK, 48, of Chicago, was a licensed real estate professional and the sole proprietor of Skokie, Ill.-based Premier Assets Inc. and Premier Properties Enterprises, Inc. From 2005 to 2018, Izsak engaged in a scheme to defraud financial institutions by obtaining residential loans through false statements, concealing the existence of unpaid loans, and falsely obtaining credit. As part of the scheme, Izsak submitted or caused to be submitted to the Cook County Recorder of Deeds fictitious lien releases. In reality, the releases were not from the lender and the loans were not paid in full. In one instance, after causing a lien to be released, Izsak sold the property to an unsuspecting buyer. In another instance, he obtained six mortgages on a single property, obtaining a new loan after fictitiously releasing the prior loan without repaying it. Izsak also obtained a loan to buy a 57-foot yacht known as the “Flying Lady” by submitting fraudulent tax returns and financial information to the lender. The yacht was seized in 2019 by federal authorities.
After a week-long trial in U.S. District Court in Chicago, the jury on Friday convicted Izsak on ten counts of financial institution fraud, each of which is punishable by up to 30 years in federal prison. U.S. District Judge Manish S. Shah set sentencing for July 9, 2024. The government at sentencing will seek forfeiture from Izsak of approximately $4 million.
The verdict was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the FBI Chicago Field Office, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. The government is represented by Assistant U.S. Attorneys Patrick J. King, Jr., and Elly M. Peirson.
Brockton Man Pleads Guilty to Fraudulently Obtaining More Than $1.5 Million in COVID-Relief FundsRead the Press Release
BOSTON – A Brockton man pleaded guilty today in federal court in Boston in connection with a scheme to submit false applications to obtain Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) funds through the Small Business Administration (SBA) that were made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Joao Mendes, 60, pleaded guilty to one count of wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for April 9, 2024. Mendes was charged in July 2022.
Beginning in or around June 2020 and continuing until at least in or around September 2020, Mendes submitted or caused to be submitted multiple fraudulent PPP and EIDL loan applications on behalf of various entities. The fraudulent PPP loan applications misrepresented the number of employees and the average monthly payroll expenses of Mendes’s various businesses. Mendes also submitted false tax records in support of his loan applications. In his EIDL applications, Mendes misrepresented the number of employees, gross revenues and costs of goods sold for each business. Based on the fraudulent applications, Mendes and others received more than $1.5 million in PPP and EIDL funds. Once Mendes received the funds, he either spent them for his own personal benefit—including for the purchase of cryptocurrency—or transferred the funds into other accounts he controlled or to other individuals.
The United States seized cryptocurrency and fiat currency from over 20 accounts, resulting in the recovery of $1.545 million in cryptocurrency and more than $206,000 in U.S. currency, which will be criminally forfeited.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP. Another is the EIDL, through which the SBA offers loans that can only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred. The American Rescue Plan Act established the RRF to provide funding to help restaurants and other eligible businesses keep their doors open through forgivable loans for eligible uses.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. 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; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Robert Manchak, Special Agent in Charge of the Federal Housing Finance Agency Office of Inspector General, Northeast Region; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Donald Alway, Assistant Director in Charge for the FBI’s Los Angeles Field Office; Weston King, Special Agent in Charge of the Small Business Administration Office of Inspector General, Western Region; Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General, New York Regional Office; Tyler Hatcher, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Los Angeles Field Office; William A. Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Northeast Field Division; and Brian Tucker, Special Agent in Charge, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, Eastern Region, made the announcement today. Assistant U.S. Attorneys Mackenzie A. Queenin and Carol E. Head of the Criminal Division and Trial Attorney Jennifer Bilinkas of the Criminal Division’s Fraud Section are prosecuting the case. Attorney Advisor Scott J. Campbell of the Criminal Division’s Money Laundering and Asset Recovery Section provided significant assistance.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Boston Man Pleads Guilty to Firearm and Ammunition OffenseRead the Press Release
BOSTON – A Boston man pleaded guilty today to unlawfully possessing a firearm and ammunition.
Victor Florentino, 27, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Patti B. Saris scheduled sentencing for April 11, 2024. Florentino was indicted by a federal grand jury in August 2022.
In April 2022, during a motor vehicle stop in Quincy, Florentino was found in possession of a Glock 9mm pistol and 15 rounds of ammunition. Florentino is prohibited from possessing a firearm or ammunition due to a prior felony conviction in 2016 for firearms trafficking.
The felon in possession charge provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney John Dawley of the Organized Crime & Gang Unit 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.
Boston Man Indicted for Firearm, Ammunition and Drug OffensesRead the Press Release
BOSTON – A Boston man has been indicted by a federal grand jury for unlawfully possessing a firearm and ammunition and distributing cocaine.
Herbert Small, 22, was indicted with one count of being a felon in possession of a firearm and ammunition and two counts of distribution and possession with intent to distribute controlled substances. He was arraigned in federal court in Boston today. Small was previously charged by complaint on Oct. 24, 2023 and has remained in custody since his arrest on Nov. 7, 2023.
According to the charging documents, on Aug. 17, 2023, Small sold 25 grams of cocaine and two firearms – a .22 caliber revolver and a .40 caliber pistol with a magazine containing 11 rounds of ammunition – to a cooperating witness in Dorchester. On Oct. 16, 2023, Small again sold approximately 70 grams of cocaine base (commonly known as crack cocaine) to the same cooperating witness.
Small prohibited from possessing firearms and ammunition due to a previous federal drug conviction in 2017.
The charge of being a felon in possession of firearms and ammunition provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute and possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years of supervised release up to life and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Office. Valuable assistance was provided by the Boston Police Department. Assistant U.S. Attorneys Philip C. Cheng and Lucy Sun of the Office’s Organized Crime & Gang Unit are 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.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Biloxi Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Gulfport, Miss. - A Biloxi man pled guilty to being in possession of more than 290 visual depictions of child pornography, announced U.S. Attorney Todd W. Gee and Acting Special Agent in Charge Eric DeLaune of Homeland Security Investigations (HSI) in New Orleans.
According to court documents, Christopher Lee Parker, 36, was identified in a child exploitation investigation in cyber tip reports coming from the National Center for Missing and Exploited Children. A federal search warrant obtained for Parker’s Biloxi residence resulted in the recovery of Parker’s cell phones, in which Parker, at times through mobile Apps, possessed approximately 291 visual depictions, in still and video formats, of minors, to include those who had not reached 12 years of age, engaging in sexually explicit conduct.
Parker is scheduled to be sentenced on April 11, 2024, at 9:30 a.m., in Gulfport. He faces a maximum penalty of 20 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by Homeland Security Investigations with assistance from the Mississippi Attorney General’s Office and the Biloxi Police Department.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Billings woman sentenced to prison for six years for trafficking meth as part of large distribution ring based on Crow Indian ReservationRead the Press Release
BILLINGS — A Billings woman who admitted to trafficking methamphetamine as part of a large drug distribution ring based on the Crow Indian Reservation and was found with meth and a semi-automatic handgun during a traffic stop was sentenced today to six years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Nancy Michelle Hartsock, 36, pleaded guilty in August to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that Hartsock is one of approximately two dozen defendants related to a large-scale conspiracy centered on the distribution of meth on the Crow and Northern Cheyenne Indian reservations. On March 15, law enforcement conducted a traffic stop in Billings of a vehicle driven by Hartsock. In a subsequent search of her vehicle, officers found 28 grams of meth, drug paraphernalia and a firearm under the driver’s seat. Because she was on probation law enforcement searched her home and found a semi-automatic rifle and a small amount of meth.
Assistant U.S. Attorneys prosecuted the case. The FBI, Drug Enforcement Administration, Bureau of Indian Affairs, Bureau of Alcohol, Tobacco, Firearms and Explosives, Yellowstone County Sheriff’s Office, Billings Police Department, Montana Probation and Parole and Eastern Montana High Intensity Drug Trafficking Area Task Force conducted the investigation.
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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Assault on dating partner sends Busby man to prisonRead the Press Release
BILLINGS — A Busby man who admitted hitting and injuring his dating partner on the Northern Cheyenne Indian Reservation was sentenced today to two years and nine months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Weston Francis Littlewhiteman, 31, pleaded guilty in August to assault resulting in substantial bodily injury to a dating or intimate partner.
U.S. District Judge Susan P. Watters presided.
The government alleged in court document that on Oct. 30, 2022, Littlewhiteman and the victim, identified as Jane Doe, were drinking at a house in Busby, on the Northern Cheyenne Indian Reservation. They argued, and Littlewhiteman left the home. Later that night. Jane Doe woke up and Littlewhiteman hit her in the face. Jane Doe was treated for injuries at the Indian Health Service in Lame Deer. At the time of the assault, Jane Doe and Littlewhiteman were dating partners.
The U.S. Attorney’s Office prosecuted the case. The Bureau of Indian Affairs and FBI conducted the investigation.
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Armed Career Criminal Facilitating the Sale of Firearms to Juveniles Sentenced to 18 YearsRead the Press Release
RALEIGH, N.C. – A Zebulon man was sentenced to 216 months in prison for illegally selling guns to juveniles. On April 13, 2023, Braxton Benton, age 34, pled guilty to engaging in the business of dealing in firearms without a license and aiding and abetting along with possession of ammunition by a convicted felon. He has previous convictions for several common law robberies and drug violations.
“Trafficking guns to kids is a fast-track to federal prison,” said U.S. Attorney Michael Easley of the Eastern District of North Carolina. “This felon got a straw purchaser to buy guns and report them stolen, then he sold them to juveniles. Guns bought at a North Carolina Cabela’s turned up on a kid in Connecticut in less than a month. We are bringing federal resources to target the gunrunners and straw purchasers arming children and fueling violence in our communities. ”
According to court documents and other information presented in court, Benton’s codefendant, Takara Wilson, reported the theft of five handguns from her car November 10, 2021 and claimed that the guns had been taken on October 28, 2021, but she had been too busy to report the theft. An investigation into the reported theft found that Wilson had purchased three of the guns from a Cabela’s in Garner on November 6, 2021, over a week after Wilson claimed they had been stolen.
Surveillance video from the store showed Benton with Wilson together. On December 3, 2021, two of the firearms that Wilson reported stolen were found during the search of a juvenile’s residence in New Haven, Connecticut based on the juvenile being involved in multiple incidents involving firearms over a three-month period. The investigation revealed that Benton had used Wilson to purchase several firearms for him that he later sold without a license. On January 18, 2022, during a traffic stop, Benton was found in possession of 28 grams of marijuana and a loaded, Polymer80 “Ghost Gun” that was neither registered nor contained a serial number, making it extremely difficult to trace. There were also text messages on Benton’s phone indicating he was attempting to sell the Polymer80 gun.
Takara Wilson was sentenced to 13 months imprisonment followed by 3 years of supervised release for engaging in the business of importing, manufacturing, or dealing in firearms without a license on June 16, 2023.
The indictment of both Wilson and Benton was originally announced in July of 2022 as part of the Raleigh Violent Crime Action Plan (VCAP). VCAP is an approach that draws on close partnerships among federal, state, and local law enforcement, as well as the community, to combat violence. The initiative brings state and federal prosecutors together to prioritize the review of gun crime cases and identify and prosecute repeat offenders and criminal organizations as well as identifying and stopping the sources of guns. Law enforcement partners use inter-agency coordination and intelligence-led policing, analyzing crime data to deploy resources where they are most needed and leveraging federal Task Force officers to bring federal technology to address local gun violence.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Raleigh Police Department investigated the case and Assistant U.S. Attorney Ashley Foxx prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-153-1D.
Arizona Woman, Two Codefendants Sentenced for Human Smuggling DeathRead the Press Release
EL PASO, Texas – The third member of a group charged in a human smuggling case was sentenced today in a federal court in El Paso to 135 months in prison for her role in an ongoing conspiracy which resulted in the death of two migrants.
According to court documents, Guadalupe Quezada, 35, of Mesa, Arizona, along with codefendants Veronica Quezada, 39, of Mesa, and Elizabeth Miranda Lozano, 39, of Dallas, actively participated in an ongoing conspiracy to bring in, transport, and harbor undocumented immigrants into the U.S. from Mexico from on or about November 2019 through on or about August 2021. The organization smuggled groups of migrants into the U.S. by traversing the border across the Chihuahuan Desert near Van Horn. Foot guides would direct the migrants to walk through the desert and rendezvous with drivers who then transport the immigrants to stash houses or staging areas for further harboring by stash house operators. During the time of the conspiracy, the organization twice abandoned migrants who were unable to keep pace with the group. An investigation revealed that the abandonment of the migrants under the harsh conditions resulted in their deaths.
Guadalupe Quezada would receive human smuggling proceeds in bulk as well as through financial institutions and redirect them to promote the human smuggling and to invest in real property. In addition to imprisonment, she also forfeits three Phoenix properties. Guadalupe Quezada and her two codefendants each pleaded guilty to one count of conspiracy to bring an alien to the United States resulting in death.
“The dangerous smuggling of human beings across our border has become far too prevalent and those engage in or facilitate this activity must account for their deadly dealings,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I commend the joint multi-district efforts of our local, state, and federal partners to bring this case to a successful close. We will continue working together at all levels of law enforcement to aggressively prosecute human smugglers as long as their operations persist.”
“As demonstrated by these defendants, human smugglers have a callous disregard for the value of life,” said Special Agent in Charge Francisco B. Burrola for Homeland Security Investigations El Paso Division. “Tragically, their inhumane practices all too often result in serious injury or death. HSI will continue to work closely with our law enforcement partners to aggressively pursue transnational criminal organizations that jeopardize the lives of others for their personal profit."
Veronica Quezada was sentenced to 63 months in federal prison on Dec. 13. Her role was to provide logistical support to foot guides, drivers and others by registering vehicles that would be used to facilitate the human smuggling venture. She traveled daily to the U.S. from Mexico to oversee operations on behalf of the organization.
Lozano was sentenced to 97 months in federal prison on Dec. 13. Her role was to transport and harbor aliens in staging areas prior to releasing them to their final destination. She relocated to Dallas from Arizona to manage the stash house on behalf of the organization.
HSI investigated the case with the assistance of the U.S. Border Patrol Big Bend and Tucson Sectors, Dallas Enforcement Removal Operations, the Drug Enforcement Administration, Texas Department of Public Safety, Dallas Police Department, and Hudspeth Country Sheriff’s Office.
Assistant U.S. Attorneys Jose Luis Acosta and Patricia Acosta prosecuted the case.
These charges resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the Western District of Texas is part of the JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security JTFA is comprised of detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California. Dedicated support is also provided by numerous components of the Criminal Division that are part of JTFA, led by HRSP, and supported by ODPAT, the Narcotic and Dangerous Drug Section, the Money Laundering and Asset Recovery Section, the Office of Enforcement Operations, OIA, and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration (DEA), and other partners. To date, JTFA’s work has resulted in over 260 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; over 180 convictions; significant jail sentences imposed; and forfeitures of substantial assets.
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Arizona Man Charged with Defrauding at Least 150 Victims in Cryptocurrency Investment SchemeRead the Press Release
PHOENIX, Ariz. – On Tuesday, a federal grand jury in Phoenix returned a 50-count indictment against Jeremie Sowerby, 45, of Fountain Hills, for wire fraud and transactional money laundering.
The indictment alleges that Sowerby scammed at least 150 victims out of millions of dollars in a cryptocurrency scheme known as Dunamis Global Technologies. Sowerby marketed Dunamis as a company that sold cryptocurrency mining machines to be hosted in Dunamis warehouse facilities in Lakeside and Tempe, which he falsely claimed to own. Sowerby informed victim-investors that they were purchasing cryptocurrency mining machines with unique serial numbers associated with each victim’s cryptocurrency wallet. In reality, Sowerby directed most of the victim funds to accounts under his control. Any “earnings” were directed to a Dunamis wallet controlled by Sowerby, and victims were never able to access their invested money or any purported profits. Instead, Sowerby stole the money and used it for himself, including purchasing Teslas, residential properties, cryptocurrency, and other expensive items.
Sowerby was previously charged, along with co-defendant Luis Ortega, in a 55-count indictment alleging that Sowerby and Ortega scammed hundreds of victims out of millions of dollars in a cryptocurrency investment scheme under the guise of three entities: Now Mining, VIP Mining, and Millennium Technologies. Sowerby was also previously charged for defrauding an Arizona physician through what he claimed to be an exclusive hedge fund investment opportunity called “Justice Capital.” Both cases remain pending.
A conviction for wire fraud carries a maximum penalty of 20 years’ imprisonment and a fine of up to $250,000, or both. A conviction for transactional money laundering carries a maximum penalty of 10 years’ imprisonment and a fine of up to $250,000, or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation and the Internal Revenue Service (IRS)-Criminal Investigation are conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
The FBI and IRS-CI believe that additional victims of Sowerby’s investment fraud schemes remain unidentified. Anyone who believes they were defrauded by the defendant in this case should contact the Victim Witness Section at the U.S. Attorney’s Office for the District of Arizona at [email protected] or fill out the questionnaire at this link: https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/seeking-potential-victims-of-jeremie-sowerby-luis-ortega-fraud-schemes.
CASE NUMBER: CR-23-01757-PHX-SMB
RELEASE NUMBER: 2023-203_Sowerby# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.ADA Agreement Ensures Effective Communication with Deaf and Hard of Hearing Patients at Kent HospitalRead the Press Release
PROVIDENCE, RI – United States Attorney Zachary A. Cunha today announced a settlement agreement under the Americans with Disabilities Act (ADA) with Kent Hospital, an affiliate of Care New England Health System, to resolve a complaint brought by an individual who is deaf and uses American Sign Language (ASL) as her primary means of communication.
The complainant was hospitalized at Kent Hospital in December 2021, and alleged that Kent Hospital failed to provide her with effective communication until the seventh day of her hospitalization, after multiple complaints by herself and a family member.
Because of Kent Hospital’s failure to provide an interpreter or other means of effective communication, the patient alleged that she experienced increased fear and confusion about her medical diagnosis and treatment. Kent Hospital cooperated fully with the investigation of this matter, which substantiated the allegations in the complaint.
Under the terms of the agreement, Kent Hospital will adopt new ADA policies and practices that will deal with providing effective communication and securing qualified interpreters for patients; train its staff on these policies; report any future complaints; and cooperate with the U.S. Attorney’s Office to ensure ongoing compliance with the terms of the settlement agreement. Additionally, Kent Hospital will pay $30,000 to the complainant and a $5,000 penalty.
Title III of the ADA prohibits discrimination against people with disabilities in places of public accommodations, such as hospitals. It requires places of public accommodation to provide the necessary auxiliary aids and services to ensure that communication is effective. Such aids and services can include American Sign Language interpreters for individuals who are deaf or hard of hearing and must be paid for by the place of public accommodation.
The United States’ case was handled by AUSA Amy Romero.
The Department of Justice offers a number of publications available to assist entities in complying with the ADA, including Effective Communication and a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. For more information on the ADA and to access these publications, visit www.ada.gov or call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD).
Any member of the public who wishes to file a complaint alleging that a place of public accommodation or public entity in Rhode Island is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at (401) 709-5000.
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kent_hospital_ada_settlement_agreement_.pdf
Monday 18 December 2023
Yolo County Insurance Broker Pleads Guilty to Identity TheftRead the Press Release
SACRAMENTO, Calif. — Robert Kirby Wells, 64, of Woodland, pleaded guilty today to one count of aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Wells served as an insurance broker for a company located in Denver, Colorado, that owned multifamily and commercial properties throughout the United States. Wells was responsible for obtaining several types of insurance coverage for the company’s properties, including umbrella liability coverage. As part of the fraud scheme, Wells represented to the company that he obtained umbrella coverage for properties when, in fact, he did not. Wells then invoiced and was paid for purported premiums associated with the umbrella liability policies that he had never obtained.
At times, after Wells received full payment for premiums associated with coverage he obtained for the company, as well as umbrella coverage he did not obtain, Wells secured loans purportedly to pay for the same premiums. He did so by falsely representing that he was financing the premiums on the company’s behalf and using the identities of a managing principal and employee of the company without their authorization.
This case is the product of an investigation by the Federal Housing Finance Agency Office of Inspector General, the Department of Housing and Urban Development Office of Inspector General, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge William B. Shubb is scheduled to sentence Wells on March 11, 2024. Wells faces a mandatory sentence of two years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Woman Sentenced to 31 Months in Prison for Stealing Stimulus Payments and Purchasing Mercedes-Benz and JewelryRead the Press Release
NEWS RELEASE SUMMARY – December 18, 2023
SAN DIEGO – Alexandra Crystal Jackson was sentenced in federal court today to 31 months in prison for using the personal information of others to obtain Economic Impact Payments from the IRS and benefit payments from California’s Employment Development Department and spending the proceeds on luxury goods.
Jackson pleaded guilty on September 21, 2023. In her plea agreement, Jackson admitted that she collected personal information from homeless and low-income individuals as well as detainees at local detention facilities. She admitted she used the information to apply for Economic Impact Payments, commonly referred to as “stimulus checks,” and directed payments to bank accounts she controlled. Jackson also admitted to using the information to apply for benefit payments from California’s Employment Development Department (EDD), and to receiving at least 40 EDD debit cards in the names of others. Jackson used the EDD debit cards to withdraw cash from ATMs and to pay for jewelry, furniture, and a Mercedes-Benz G-Glass 550 SUV that the IRS seized.
U.S. District Judge Gonzalo P. Curiel also ordered Jackson to pay restitution and entered a preliminary forfeiture order for the Mercedes-Benz.
Jackson’s co-defendant, Demetrius Montre McFarland, previously admitted he provided Jackson with the personal information of his fellow detainees at the Vista Detention Center. McFarland entered a guilty plea on December 11, 2023, and his sentencing hearing is set for March 5, 2024.
“These government programs were meant to help California residents get through the pandemic,” said U.S. Attorney Tara McGrath. “They were not intended as a get-rich-quick scheme for criminals who want a Mercedes.”
“Taking advantage of some of our communities’ most vulnerable adults and conspiring with your spouse to line your pockets is deplorable,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “The Economic Impact Payments were meant to help our communities during a time of crisis. Ms. Jackson and her husband abused the system and now Ms. Jackson will have time to reflect on her actions. IRS:CI is committed to identifying and investigating these types of schemes which includes the seizure of any assets purchased with funds stolen from these relief programs. We are dedicated to bringing justice to our communities affected by these types of schemes.”
This case is being prosecuted by Assistant U.S. Attorneys Eric R. Olah and Joseph Orabona.
DEFENDANTS Case Number 23-CR-1098-GPC
Alexandra Crystal Jackson Age: 32 San Diego, CA
Demetrius Montre McFarland Age: 31 San Diego, CA
SUMMARY OF CHARGES
Conspiracy–Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
Internal Revenue Service, Criminal Investigation
Wister Resident Pleads Guilty to Child Neglect ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael Traig Pride, age 33, of Wister, Oklahoma, entered a guilty plea to two counts of Child Neglect in Indian Country.
On May 11, 2022, while responsible for the health, safety, and welfare of two children, Pride willfully failed to protect them from harm when he failed to properly secure them in child passenger restraint systems, then drove without a valid driver's license and at an excessive rate of speed. The crimes occurred in LeFlore County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Oklahoma Highway Patrol, the City of Talihina Police Department, and the Federal Bureau of Investigation.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.
Waubay Woman Sentenced to Federal Prison for Embezzlement and Theft from an Indian Tribal OrganizationRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Waubay, South Dakota, woman convicted of Embezzlement and Theft from an Indian Tribal Organization and Aiding and Abetting. The sentencing took place on December 11, 2023, in Aberdeen, South Dakota.
Kayline Joy LaBelle, age 46, was sentenced to five years in federal prison, followed by three years of supervised release. She was ordered to pay $203,283.13 in restitution and $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
LaBelle was indicted for Embezzlement and Theft from an Indian Tribal Organization and Aiding and Abetting by a federal grand jury in July 2023. She pleaded guilty on September 11, 2023.
According to court documents, between 2018 and 2022, LaBelle and others embezzled more than $150,000 belonging to the Buffalo Lake District of the Sisseton-Wahpeton Oyate Sioux Tribe, an Indian Tribal Organization. LaBelle was aided and abetted by Elaine Blanche King, Duane Randy LaBelle, Jr., Jacenta Rae Varns, and Shayline Lena Max.
LaBelle was the elected treasurer of the Buffalo Lake District and stole checks from the tribal organization. LaBelle then cashed those stolen checks at various vendors, businesses, and casinos, and she also distributed those stolen checks to her co-defendants. LaBelle used the funds for personal expenditures and her use was unauthorized and unlawful. LaBelle served as the treasurer until she resigned in September 2022. Her conduct, acts, and omissions resulted in approximately $205,000 in losses to the district and tribe.
Elaine Blanche King and Jacenta Rae Varns have pleaded guilty and are awaiting sentencing. The cases against Duane Randy LaBelle, Jr. and Shayline Lena Max are pending in federal court.
This case was investigated by the FBI and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
LaBelle will have to surrender on December 26, 2023, to begin serving her sentence.
This case was brought pursuant to the Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: the FBI; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; IRS Criminal Investigation; U.S. Postal Inspection Service; and the U.S. Postal Service, Office of Inspector General.
For additional information about the Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Waterbury Drug Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that NESTOR SOSA-ORTIZ, 39, of Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 120 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl and heroin.
According to court documents and statements made in court, this matter stems from a joint investigation headed by the DEA New Haven Task Force and the Waterbury Police Department into a Waterbury-based drug trafficking operation headed by Sosa-Ortiz. The investigation, which included the use of court-authorized wiretaps, physical surveillance, and controlled purchases of narcotics, revealed that Sosa-Ortiz’s organization received large quantities of fentanyl and heroin from suppliers in Connecticut and New York and distributed the narcotics through a network of co-conspirators. After Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge in May 2019, he continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators, including his sisters, Imirici Sosa-Ortiz and Isamelis Sosa-Ortiz.
The Sosa-Ortiz organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of fentanyl and heroin, and to process and package the drugs for street sale.
On October 29, 2019, several of Nestor Sosa-Ortiz’s co-conspirators were arrested. On that date, investigators executed search warrants at the Bishop Street apartment and four other locations and seized approximately six kilograms of fentanyl and heroin, approximately 100,000 bags of fentanyl/heroin packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm, and approximately $50,000 in cash.
Nestor-Sosa Ortiz has been detained since May 18, 2019, and his federal charges that were pending in the Southern District of New York were subsequently transferred to the District of Connecticut for further prosecution. On June 18, 2020, he pleaded guilty to two counts of conspiracy to possess with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl, related to both the Connecticut and New York.
Seventeen individuals were charged and convicted as a result of this investigation. Imirici Sosa-Ortiz and Isamelis Sosa-Ortiz pleaded guilty and were each sentenced to 94 months of imprisonment.
This investigation was conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments.
The case was prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Jocelyn Courtney Kaoutzanis through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Wanblee Man Sentenced to Life in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Wanblee, South Dakota, man convicted of one count of Aggravated Sexual Abuse and two counts of Sexual Abuse. The sentencing took place on December 15, 2023.
Anthony Red Elk, 34, was sentenced to three terms of life imprisonment and ordered to pay a total of $300 in special assessments to the Federal Crime Victims Fund. The life imprisonment sentences shall be served concurrently.
Red Elk was indicted for the charges by a federal grand jury in November of 2021. He was found guilty following a federal jury trial in Rapid City, South Dakota, in July of 2023.
The convictions relate to Red Elk sexually assaulting a ten-year-old girl at Wanblee, on the Pine Ridge Reservation, while the young girl babysat Red Elk’s child in his home. Red Elk then sexually abused the same female in 2018 and again in 2019 at Wanblee, after she had reached the age of 18. Red Elk threatened her should she tell anyone and taunted her that no one would believe her if she came forward.
Red Elk previously worked at the Crazy Horse School in Wanblee as a basketball coach, bus driver, and custodian. He also worked in a juvenile detention facility. He was fired from the Crazy Horse School in January of 2019, for sending sexually explicit Facebook messages to a student.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Knox prosecuted and tried the case.
Red Elk was immediately remanded to the custody of the U.S. Marshals Service.
Virginia Man Sentenced to over Three Years in Federal Prison for Cyberstalking of Maryland WomanRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Michael Ghali, age 35, of Fairfax, Virginia, today to 38 months in federal prison, followed by three years of supervised release for a federal cyberstalking charge, related to sexually explicit and threatening messages and emails he sent to two victims. Ghali has been detained since his arrest and remains detained.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, beginning in June 2020, Ghali sent an acquaintance, Victim 1, a series of sexually explicit and threatening text messages using an application which allows users to acquire phone numbers to send text messages that they don’t want to be associated with their known phone number.
During that same time, Ghali sent Victim 2, who was the head of a medical department at a Baltimore-based hospital, a series of emails from email addresses he created for the purpose of sending Victim 2 threatening messages, accusing Victim 2 of sexually abusing employees in the medical department and minors, and which claimed that the sender had photos of the abuse. Ghali demanded that Victim 2 resign from his position at the hospital and threatened to send the purported photos of the abuse to the press. Victim 2 knew of Ghali, as Ghali had previously completed a short medical rotation at the hospital.
As detailed in the statement of facts, after receiving the threatening messages, Victim 1 contacted the Anne Arundel County Police Department and obtained a protective order that became effective on July 7, 2020. Similarly, after Victim 2 received an email from Ghali which threatened Victim 2’s life and the lives of his grandchildren, Victim 2 hired a professional security detail and changed his surgical and other schedules. Victim 2 suspected that Ghali sent the messages and became aware that in 2019 Ghali had been charged in Fairfax, Virginia, with brandishing an AR-15 assault rifle within 1000 feet of a school. On July 21, 2020, the hospital obtained a temporary restraining order and ultimately a preliminary injunction against Ghali on behalf of Victim 2.
On August 25, 2020, law enforcement executed a search warrant at Ghali’s residence, seizing several electronic devices, including two Apple iPhones, as well as three boxes of .44 caliber ammunition. From a Federal Firearms Licensee in Fairfax County law enforcement also seized a .22LR caliber semi-automatic firearm, a 10-round capacity magazine, and additional ammunition. A subsequent review of Ghali’s phone revealed another social media page Ghali created in which he posted photos of individuals, including Victim 1. Several images of Victim 1 with sexually explicit captions were located on the page.
According to the plea agreement, on August 28, 2020, Ghali obtained a new Apple iPhone and, in violation of the protective orders that were in place, sent Victim 1 and Victim 2 additional messages and emails. In addition, Ghali posted sexually explicit and threatening messages regarding Victim 1 to another of his social media pages. On October 9, 2020, law enforcement executed a second search warrant at Ghali’s home which authorized seizure of among other things, the new Apple iPhone used by Ghali to send the message to Victim 1. Law enforcement ultimately were unable to locate the device but did locate a receipt for its purchase and packaging material.
U.S. Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron also thanked Assistant United States Attorney Paul A. Riley, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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United States Files Complaint Against St. Elizabeth's Medical Center, Steward Medical Group and Steward Health Care SystemRead the Press Release
BOSTON – The U.S. Attorney’s Office has filed a complaint under the False Claims Act against Steward St. Elizabeth’s Medical Center of Boston, Inc. (SEMC); Steward Medical Group, Inc. (SMG); and Steward Health Care System, LLC (Steward) alleging that they violated the Physician Self-Referral Law (commonly referred to as the “Stark Law”) and submitted and caused the submission of false claims and statements to the Medicare program. Steward – the owner of SMG and SEMC – is an integrated healthcare system and one of the largest, private, for-profit health care networks in the nation.
Congress enacted the Stark Law to protect against physicians’ financial relationships from impacting their medical decision-making for Medicare patients. Relevant to this case, the Stark Law prohibits a hospital from billing Medicare for services referred by a physician with whom the hospital has an improper compensation relationship. The Stark Law protects patients and the Medicare program from physicians’ financial relationships leading to unnecessary overutilization of services or increased costs.
In 2012, SMG recruited Dr. Agnihotri, a cardiac surgeon, to serve as the Chief of Cardiac Surgery at SEMC. The government alleges that the defendants recruited Dr. Agnihotri because they wanted to increase the number of cardiovascular surgeries at SEMC in Boston, as a means to grow their profits via reimbursement from Medicare and other insurers. The government’s complaint alleges that, from January 2013 through March 2022, SMG paid Dr. Agnihotri compensation that exceeded fair market value as well as incentive compensation that varied based on, and took into account, the volume or value of his referrals to SEMC. Specifically, the amount of incentive compensation that SMG allegedly paid to Dr. Agnihotri varied based on the number of surgeries that Dr. Agnihotri referred to SEMC. It is alleged that SMG paid Dr. Agnihotri approximately $4,868,500 in incentive compensation that it calculated by including as a variable the number of cases Dr. Agnihotri referred to SEMC. The complaint alleges that Dr. Agnihotri made referrals to SEMC in violation of the Stark Law and SEMC submitted over 1,000 claims to Medicare knowing that the claims for those referred services were not eligible for payment. As a result, Medicare mistakenly paid tens of millions of dollars to SEMC for false claims.
“The government’s complaint today alleges that in its drive to increase cardiac surgeries at SEMC, the defendants entered into improper compensation arrangements with a cardiac surgeon, and knowingly submitted false claims to Medicare,” said Acting United States Attorney Joshua S. Levy. “We are committed to enforcing the Stark Law, and protecting patients and the Medicare program from financial relationships that can corrupt clinical decision making.”
“Improper financial arrangements between hospitals and physicians can compromise medical judgement and threaten the integrity of the Medicare program,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Working alongside our law enforcement partners, HHS-OIG will continue to thoroughly pursue allegations of Stark Law violations.”
“Health care providers need to ensure that compensation agreements with physicians are appropriate, and the claims they submit to Medicare are based on the clinical needs of patients, not financial ones,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Working with our law enforcement partners, we will continue to investigate deals that we believe could undermine impartial medical judgement, drive up health care costs, and erode the public’s trust in our health care system.”
The government’s investigation was prompted by False Claims Act allegations brought in a lawsuit filed by a whistleblower, under the qui tam provisions of the False Claims Act.
Acting U.S. Attorney Levy, HHS-OIG SAC Coviello and FBI SAC Cohen made the announcement today. The Department of Defense, Office of the Inspector General also assisted in the investigation. Assistant U.S. Attorneys Jessica J. Weber and Andrew A. Caffrey, III of the Affirmative Civil Enforcement Unit are handling the matter.
The claims in which the United States has intervened are allegations only. There has been no determination of liability.
Umar Koon Pleads Not Guilty to Drug ChargesRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Umar Koon, 45, of the Bronx, New York, pleaded not guilty today in United States District Court to charges that he distributed, and possessed with intent to distribute, illegal narcotics. United States Magistrate Judge Kevin J. Doyle released Koon on conditions pending trial, which has not been scheduled.
According to court records, the Northwestern Vermont Drug Task Force and the Federal Bureau of Investigation began an investigation of Koon in the summer of 2023 after obtaining information that Koon was selling fentanyl in the Chittenden County area. Between September and November 2023, investigators, utilizing a confidential informant, made seven controlled purchases of drugs from Koon. On five occasions, it is alleged that Koon sold the confidential informant fentanyl; the two other deals involved cocaine base. Investigators arrested Koon on November 14 after he returned to Burlington from New York City on a bus. Agents seized a suitcase Koon was carrying, obtained a state court-issued warrant to search the bag, and recovered distribution quantities of cocaine, cocaine base and fentanyl. They also seized $1,500 in cash from Koon’s person.
Koon was held without bail on state charges until December 6, when he was released to live in New York City. On December 7, 2023, a federal grand jury returned an indictment charging Koon with seven counts of distributing illegal narcotics and one count of possessing other illegal narcotics with intent to distribute. Federal agents arrested Koon at his home in the Bronx on December 12. A federal judge in New York ordered that Koon surrender for arraignment today in Vermont. The State of Vermont has dismissed its case in favor of this federal prosecution.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty. If convicted, Koon faces up to 20 years of imprisonment and a fine of up to $1,000,000. The actual sentence would be determined with reference to the Federal Sentencing Guidelines.
The prosecutor is Assistant U.S. Attorney Gregory Waples. Koon is represented by Assistant Federal Public Defender Steven Barth.
U.S. Trustee Program’s Advocacy Preserves Consumers’ Rights in MV Realty BankruptciesRead the Press Release
More than 40,000 consumers allegedly lured into predatory 40-year listing agreements will have more opportunity to raise their claims in the bankruptcies of a Florida-based real estate company and its affiliates, thanks to efforts by the United States Trustee Program (USTP).
On November 30, the Bankruptcy Court for the Southern District of Florida granted a motion by the USTP’s Miami office to extend the deadline for creditors to file claims in the chapter 11 bankruptcies of MV Realty PBC LLC and its nearly three dozen affiliates. The court’s order extends the original Dec. 1 deadline to Feb. 1, 2024. The court also directed the MV Realty entities to serve – at their expense – copies of the order on all parties to the bankruptcies, including roughly 38,000 homeowners whom MV Realty listed as current contract holders but not as creditors. Additionally, the companies must provide claim forms to about 2,850 other consumers who may have been forced to pay damages after terminating their agreements; those consumers were neither listed as creditors nor notified of the bankruptcy cases.
MV Realty opposed the USTP’s motion, citing the costs of additional service. Its objection was overruled.
“This ruling protects the due process rights of thousands of people across the country who were affected by MV Realty’s business practices,” said Director Tara Twomey of the Executive Office for U.S. Trustees. “The U.S. Trustee Program does not represent consumers directly, but it is committed to ensuring that they have a fair chance to access the bankruptcy courts, whether as creditors or debtors. I commend our Miami field office for their work to safeguard the interests of justice by preserving consumers’ rights to have their voices heard in these bankruptcy cases.”
MV Realty, which operates in 33 states, has been the subject of lawsuits by several state attorneys general alleging deceptive trade practices. In 2018, MV Realty began marketing homeowner benefit agreements (HBAs), under which consumers receive one-time payments of 0.3% of a property’s value in exchange for a 40-year exclusive right for MV Realty to market the property if the consumer decided to sell. Breaching an HBA – for example, by retaining a different real estate agent – could render a consumer liable for damages of up to 3% of the property value. In other words, consumers who received upfront payments of a few hundred dollars could end up owing thousands under an HBA. Additionally, MV Realty files liens or memoranda in the official records to encumber title to the properties.
Amid increasing state and federal scrutiny of the HBA program and MV Realty’s marketing practices, MV Realty and 35 affiliates filed for chapter 11 relief on Sept. 22. In addition to filing the motion to extend the claims deadline, the USTP’s Miami office has also appointed a committee specifically to represent the interests of all HBA holders.
The U.S. Trustee Program is the component of the Justice Department whose mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the Program at www.justice.gov/ust.
U.S. Attorney’s Office, the FBI, and State and Local Law Enforcement Officials Release Fourth “Don’t Click December” PSARead the Press Release
BOISE – During the holiday season, online criminals increasingly target Idahoans through online scams and fraud schemes. Today, U.S. Attorney Josh Hurwit, along with the FBI, the Idaho State Police, the Ada County Prosecutor’s Office, the Ada County Sheriff’s Office, the Boise Police Department, the Meridian Police Department, and the Garden City Police Department, released a fourth PSA as part of their joint “Don’t Click December” Consumer Protection Campaign. The Canyon County Sheriff’s Office, Idaho Attorney General’s Consumer Protection Division, AARP Idaho, and the Better Business Bureau also participated in the announcement.
The campaign advises members of the public to exercise skepticism and caution when receiving unsolicited online, email, pop-up, or text communications from unknown or unverified sources. If there is any doubt about a link, message, or attachment, law enforcement cautions: “don’t click it.”
In the fourth and final PSA, available here, Ada County Sheriff Matt Clifford, FBI Supervisory Special Agent David Bodily, and U.S. Attorney Hurwit warn the public about the “phantom hacker” scam and explain some of the ways in which individuals can protect themselves.
The "phantom hacker” scam is a relatively new scheme that is particularly complex and devious. First, scammers send unsolicited messages by phone, email, text, or pop-up pretending to be “tech support,” and asking you to provide access to your computer so software can be updated to thwart hackers. But once the scammers access to your computer, they instead install software to steal your financial information. Then they send messages pretending to be your financial institution, saying that your accounts have been hacked and you need to move your money to a third-party account for “safety.” Sometimes the scammers even pretend to be the government or law enforcement and send messages that your money is still unsafe and needs to be moved to a new “alias” account.
This scam draws victims in using entities you typically trust: Like tech support, financial institutions, and law enforcement. Each step builds the scam to bilk people out of thousands of dollars.
Don’t click it. Protect yourself from the “phantom hacker” scam: do not click on unsolicited pop-ups, links sent via text messages, email links, or attachments. Do not contact the telephone number provided in a pop-up, text, or email. Do not download software at the request of an unknown individual who contacted you. Do not allow an unknown individual who contacted you to have control of your computer. Remember, the Government will never ask you to send money via wire transfer, cryptocurrency, or gift cards.
This four-part series of PSAs, released in the weeks leading up to Christmas, is an effort to alert the public to common online fraud schemes that Idaho law enforcement has seen affect Idahoans.
Unfortunately, these are not the only schemes affecting the public, and new schemes arise all the time. Law enforcement hopes that the “Don’t Click December” Consumer Protection Campaign will raise public awareness and encourage individuals to talk to their friends and relatives about not clicking suspicious links, texts, messages, pop-ups, or attachments.
“Everyday Idahoans are targeted by online scammers, and this activity spikes during the holidays in December,” said U.S. Attorney Hurwit. “But we are not helpless. Through our Don’t Click December videos, we point out some of the red flags that individuals can spot to protect themselves and their loved ones. And we also want to encourage people to report online scams to law enforcement so that we can recover lost money and hold the perpetrators accountable. We are all in this together.”
“Last year, the FBI’s Internet Crime Complaint Center received 800,944 complaints about suspected internet crimes. That’s more than 2,000 complaints every single day,” said David Bodily, Supervisory Special Agent of the Salt Lake City FBI’s Boise Resident Agency. “As cyber scams continue to increase in scope and sophistication, it’s important that law enforcement and the public work together to stay ahead of the risks.”
“When people on the internet ask you for any kind of information, our advice is to stop and think – why are they asking? Does it make sense?” said Ada County Sheriff Matt Clifford. “Just pausing for a beat and doing some critical thinking is probably the best thing you can do to prevent online crime.
The U.S. Attorney’s Office and its law enforcement partners recognize that we all must work to eliminate the stigma individuals may experience if they are victimized. There is no shame to falling victim to an online scheme, which are often designed by professional criminals, sophisticated, and tested repeatedly across the country.
For this reason, the “Don’t Click December” Consumer Protection Campaign also publicizes ways to report scams and incidents of fraud to the FBI and local law enforcement.
To learn more about these and other scams targeting Americans visit FBI.gov, and if you believe you are the victim of a scam, take action by reporting it to FBI’s Internet Crime Complaint Center at IC3.gov or by contacting your local law enforcement agency.
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U.S. Attorney Ryan K. Buchanan and HUD Inspector General Rae Oliver Davis Host a safe housing summit focused on health and safety in HUD-assisted housingRead the Press Release
ATLANTA – U.S. Attorney Ryan K. Buchanan and the U.S. Department of Housing and Urban Development’s Inspector General Rae Oliver Davis hosted a Safe Housing Summit on December 14, 2023, to promote health and safety for tenants living in HUD-assisted housing.
“Our office is determined to address inequities in our district that exist in underserved communities who must heavily rely on HUD’s housing assistance programs,” said U.S. Attorney Buchanan. “These citizens deserve to live and raise families in residential areas that are safe and thriving. Our partnership with HUD-OIG, and with other federal agencies and community members, will afford us the necessary resources to support at-risk communities in a more coordinated and impactful way. This Summit is just the beginning of our expanded effort.”
“Everyone deserves to live in a healthy and safe environment without fear of being exposed to environmental hazards or being sexually harassed or assaulted by their housing provider,” said Housing and Urban Development’s Inspector General Oliver Davis. “We are working closely with the U.S. Attorney’s Office to spread the word about ways to help victims who currently are experiencing such violations of their rights or who have been impacted in the past. Outreach summits like the one we cohosted are an important way to increase awareness, share information, and build strong partnerships in the community to help call out and eliminate these problems together.”
The Summit took place at the U.S. Attorney’s Office in Atlanta, and focused on eliminating environmental hazards, as well as combatting sexual misconduct, in HUD-assisted housing. The topics included safe housing strategies, environmental justice concepts, and how to recognize and report sexual misconduct in HUD-assisted housing.
Participants included representatives from organizations who routinely work with vulnerable populations most likely to be impacted by environmental injustice or sexual harassment in housing by their landlords, property managers, maintenance staff, and other housing personnel in positions of authority.
“Sexual harassment is a form of discrimination prohibited by the Fair Housing Act, and no one should be forced to endure illegal harassment in exchange for housing,” added U.S. Attorney Buchanan. “We will continue to devote resources to enforce the Fair Housing Act by investigating and prosecuting discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status.”
A variety of organizations and local law enforcement agencies also attended the Summit, including fair housing organizations and organizations which provide pro bono legal services. Participants were encouraged to build partnerships and share concerns during a networking session.
If you or someone you know has information about environmental hazards and unsafe unit conditions in HUD-assisted housing or has been a victim of sexual harassment, sexual assault, or sexual exploitation—even if the events occurred years ago—report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline.
You may also contact the U.S. Department of Justice at 1-844-380-6178 or visit www.civilrights.justice.gov. Individuals who believe they may have been victims of environmental injustices or housing discrimination may also contact the U.S. Attorney’s Office at [email protected] or (404) 581-4626.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney Attends the Violent Crime Reduction SummitRead the Press Release
Tulsa, Okla. – U.S. Attorney Clint Johnson attended the Bureau of Justice Assistance (BJA) Violent Crime Reduction Summit: Partnerships for Safer Communities, in Indianapolis, Indiana. The Violent Crime Reduction Summit (Summit) brought together local leadership and federal partners from Project Safe Neighborhoods (PSN) and National Public Safety Partnership (PSP) sites.
More than 1,100 attended the Summit to discuss violence reduction strategies, identify evidence-informed practices to increase public safety, enhance partnerships in the participating communities, and reduce violent crime. U.S. Attorney Johnson was accompanied by Assistant U.S. Attorney and NDOK PSN Coordinator John Brasher, Cherokee Nation Deputy Marshal Erik Fuson, Muscogee (Creek) Nation Tribal Deputy Chief Daniel Wind, Tulsa Police Department Majors Mark Wollmershauser Jr. and Richard Alexander and Tulsa Police Department Sergeant Jeremy Ballard.
Attorney General Merrick B. Garland announced in the opening session the release of the Justice Department’s Violent Crime Reduction Roadmap. This is a one-stop shop to assist local jurisdictions in developing, implementing, and evaluating strategies to prevent, intervene in, and respond to violent crime. The Roadmap is part of a comprehensive Justice Department strategy to help connect jurisdictions with the information and resources they need to meet the complex and evolving challenges to help reduce violent crime.
In Dec. 2022, Tulsa hosted the National PSP Violent Crime Reduction Summit. More than 500 key stakeholders from PSP sites attended, as well as DOJ officials, experts, local and federal law enforcement. The Deputy Attorney General Lisa O. Monaco delivered the opening remarks. The attendees examined evidence-based practices to increase public safety while reducing violent crime. They further discussed how to enhance partnerships within the participating communities.
“The Northern District of Oklahoma is working hard to address violent crime at every level,” said U.S. Attorney Clint Johnson. “Tulsa hosted the National PSP Violent Crime Reduction last December. The Roadmap will strengthen then ongoing collaboration between local, federal and tribal partners ability to address violent crime. I’m pleased to know that the resources made available can support our local, federal, and tribal partners.”
Dozens of Justice Department resources available from the Roadmap are organized around actions outlined in Saving Lives: Ten Essential Actions Cities Can Take to Reduce Violence Now, developed by the Council on Criminal Justice, a nonpartisan think tank for the criminal justice field.
The Police Executive Research Forum, funded by OJP’s Bureau of Justice Assistance, will provide local jurisdictions with tailored training and technical assistance on how to implement the 10 essential actions and utilize the Justice Department’s resources identified in the Roadmap, to reduce violent crime while building community trust. Training and technical assistance offerings include specialized expertise to help organizations solve problems and build capacity, and they provide direct connections to subject matter experts as well as how-to materials.
Two men charged with armed robberies of postal workersRead the Press Release
ATLANTA - Tavion Lashawn Williams and Justin Andrew Sams have been indicted in connection with armed robberies of postal workers in metro-Atlanta.
“Our communities rely on a safe and secure mail system made possible by the dedication of U.S. Postal Service employees and letter carriers who labor tirelessly for our benefit,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to collaborating closely with our federal and local partners to identify and prosecute those who threaten violence against members of the Postal Service.”
“The safety and security of Postal Service employees and customers is core to the mission of the Postal Inspection Service,” said Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service Atlanta Division. “We are grateful to continue to work in close partnership with our local law enforcement partners as we investigate individuals involved in violent criminal activity against our employees.”
“The Atlanta Police Department is committed to getting criminals off our streets and out of our neighborhoods,” said Atlanta Police Chief Darin Schierbaum. “Letter carriers provide a vital service, and no one should feel unsafe when they are carrying out the duties of their job. The APD is proud to have played a role in the arrest of two criminals who impacted the well-being of the Postal Service employees who were simply doing their job.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Tavion Lashawn Williams allegedly demanded the keys of a U.S. Postal Service (“USPS”) letter carrier while the employee was delivering mail in Clayton County, Georgia, on March 1, 2023. Williams allegedly pointed a gun at the letter carrier when the carrier hesitated. After seizing the carrier’s key, Williams fled but was soon arrested.
Approximately seven months later, on September 30, 2023, Justin Andrew Sams allegedly assaulted a USPS letter carrier in southwest Atlanta. While brandishing a firearm, Sams allegedly ordered the letter carrier to hand over his postal uniform, keys, cellular telephone, and wallet. Sams also allegedly stole the letter carrier’s government-issued credit card used to purchase fuel for the letter carrier’s mail truck.
The Atlanta Police Department responded to the scene, succeeded in identifying Sams, and ultimately recovered the letter carrier’s telephone, wallet, fuel card, and uniform. Investigators also discovered a semiautomatic pistol during a search of Sams’s residence.
On December 6, 2023, a federal grand jury returned an indictment charging Tavion Lashawn Williams, 21, of Jonesboro, Georgia with theft of a Postal Service key, armed postal robbery, and brandishing a firearm.
On December 12, 2023, another federal grand jury returned an indictment charging Justin Andrew Sams, 34, of Atlanta, Georgia with armed postal robbery, brandishing a firearm, and theft of government property.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges, and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
These cases are being investigated by the U.S. Postal Inspection Service, Clayton County Police Department, and Atlanta Police Department.
Assistant U.S. Attorneys Stephanie E. Gabay-Smith and Theodore S. Hertzberg are prosecuting the cases.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Men Indicted on Federal Racketeering Charge for Allegedly Murdering Man to Increase Positions in Chicago Street GangRead the Press Release
CHICAGO — Two men have been indicted on a federal racketeering charge for allegedly murdering a man to maintain and increase their positions in a violent Chicago street gang.
DIONTAE HARPER, 24, and AMONTI MCCLURE, 21, both of Chicago, are charged with one count of murder in aid of racketeering, according to an indictment returned in U.S. District Court in Chicago. It accuses the pair of murdering Paul Harris on May 13, 2020, for the purpose of maintaining and increasing their positions in the Faceworld street gang, a criminal organization based on the South Side of Chicago whose members engaged in violence and trafficked narcotics. Harris was fatally shot while sitting in a vehicle in the 8600 block of South Halsted Street in Chicago’s Auburn Gresham neighborhood.
The defendants are in law enforcement custody. Arraignment for Harper is scheduled for Tuesday at 1:00 p.m. before U.S. Magistrate Judge Heather K. McShain. Arraignment for McClure is scheduled for Wednesday at 9:00 a.m. before Judge McShain. The U.S. Attorney’s Office will be seeking to have the defendants remain detained pending trial.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys John Cooke, Brian Kerwin, and Julia Schwartz.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Murder in aid of racketeering is punishable by a mandatory sentence of life in federal prison, and the death penalty is also possible. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Harper et al indictmentTwo Inland Empire Brothers Sentenced to 24 Years in Prison for Trafficking Heroin via Home Delivery Service in Orange CountyRead the Press Release
SANTA ANA, California – Two Riverside County brothers who ran a drug trafficking operation that used two Orange County-based call centers that took telephone orders for deliveries of the drug, which resulted in one fatal overdose, each were sentenced today to 288 months in federal prison.
Julio Cesar Martinez, 45, a.k.a. “Primo,” of Riverside, and Victor Martinez, 46, a.k.a. “Hector,” of Hemet, were sentenced by United States District Judge Cormac J. Carney in separate hearings.
Each Martinez brother pleaded guilty on August 16 to one count of conspiracy to distribute heroin.
“These two brothers took drug dealing to another level by operating a heroin-delivery service that profited on the addiction and affliction of others,” said United States Attorney Martin Estrada. “While they and their families lived lavishly, these defendants ignored the destruction they caused in our community. Today’s sentence sends a clear message that we will not stand for misconduct of this sort.”
From at least 2003 to July 2021, the two brothers ran a drug trafficking organization that imported heroin from Mexico into the United States by couriers who concealed the drug, sometimes in their body cavities, to Orange County. Once the heroin arrived in Orange County, Julio Martinez oversaw its distribution to various call centers that he also supervised. He also oversaw its distribution to customers.
After a customer placed a heroin order, Martinez and his accomplices arranged for the drug’s delivery using “runners,” who were directed to deliver the heroin and take the customer’s payment.
Martinez and other conspirators used coded language on the telephone while engaging in drug distribution activity. For example, the organization’s code word for heroin was “food” and its code word for one gram of heroin was “taco.”
In December 2016, a customer who purchased heroin over the telephone from Martinez’s drug trafficking organization died of acute polydrug intoxication, including heroin.
The brothers admitted in their plea agreements to distributing at least 29 kilograms of heroin onto the streets of Orange County.
To conceal the source of the income the organization generated, Julio Cesar Martinez and Victor Martinez caused the deposit of the heroin sales proceeds into bank accounts held by other conspirators. The Martinez brothers ordered their co-conspirators to structure the deposits into the bank accounts to evade federal reporting requirements by depositing the money at different banks and by breaking the deposits up into amounts $10,000 and under. The brothers used the proceeds to purchase cars and homes and to fund their lifestyles.
“Operation 'Horse Caller' targeted all levels of this international drug trafficking network, ranging from suppliers in Mexico to mules and runners delivering drugs to customers in Orange County at the direction of the Martinez brothers,” said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Federal and local law enforcement agencies working in partnership led to the dismantling of the Martinez brothers' network and closed off a main pipeline of the heroin supply in Orange County that operated for years and led to deadly consequences.”
“The Martinez brothers’ efforts to conceal their drug trafficking activities by attempting to exploit minimum bank reporting requirements was to no avail,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “This well-coordinated investigation is yet another example of the effectiveness of our partnerships with fellow law enforcement agencies in bringing these criminals to justice.”
Federal prosecutors have secured 16 convictions in this case.
The FBI and IRS Criminal Investigation investigated this matter. The Orange County Sheriff's Department, the Newport Beach Police Department, the Costa Mesa Police Department, the Huntington Beach Police Department, the Oxnard Police Department, the California Highway Patrol and March Air Reserve Base provided substantial assistance.
Assistant United States Attorney Kevin J. Butler of the Violent and Organized Crime Section prosecuted this case. Assistant United States Attorney Jonathan S. Galatzan of the Asset Forfeiture and Recovery Section is handling the forfeiture portion of the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Trevor Milton Sentenced to Four Years in Prison for Securities Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that TREVOR MILTON was sentenced by U.S. District Judge Edgardo Ramos to four years in prison for engaging in securities and wire fraud in connection with his scheme to defraud and mislead investors about the development of products and technology by the company he founded, Nikola Corporation (“Nikola”). MILTON was previously convicted after a one-month trial before Judge Ramos.
U.S. Attorney Damian Williams said: “Trevor Milton lied to investors again and again — on social media, on television, on podcasts, and in print. But today’s sentence should be a warning to start-up founders and corporate executives everywhere — ‘fake it till you make it’ is not an excuse for fraud, and if you mislead your investors, you will pay a stiff price.”
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:
From at least in or about November 2019 up through and including at least in or about September 2020, TREVOR MILTON engaged in a scheme to defraud investors by inducing them to purchase shares of Nikola Corporation, the electric- and hydrogen-powered vehicle and energy company that MILTON founded, through false and misleading statements regarding Nikola’s product and technology development. MILTON’s scheme targeted individual, non-professional investors — so-called “retail investors” — by making false and misleading statements directly to the investing public through social media and television, print, and podcast interviews.
MILTON made these false and misleading statements regarding Nikola’s products and capabilities to induce retail investors to purchase Nikola stock. MILTON took advantage of the fact that Nikola went public by merging with a Special Purpose Acquisition Company or “SPAC,” rather than through a traditional IPO, by making many of his false and misleading claims during a period where he would have not been allowed to make public statements under rules that govern IPOs.
MILTON made false claims regarding nearly all aspects of Nikola’s business, including: (i) false and misleading statements that the company had early success in creating a “fully functioning” semi-truck prototype known as the “Nikola One,” when MILTON knew the prototype was inoperable; (ii) false and misleading statements that Nikola had engineered and built an electric- and hydrogen-powered pickup truck known as “the Badger” from the “ground up” using Nikola’s parts and technology, when MILTON knew that was not true; (iii) false and misleading statements that Nikola was producing hydrogen and was doing so at a reduced cost, when MILTON knew that in fact no hydrogen was being produced at all by Nikola, at any cost; and (iv) false and misleading claims that reservations made for the future delivery of Nikola’s semi-trucks were binding orders representing billions in revenue, when the vast majority of those orders could be cancelled at any time.
For example, when Nikola’s stock was publicly traded in 2020, MILTON claimed that Nikola had defied expectations as a young, disruptive company when it managed to build its prototype hydrogen-powered semi-truck, the Nikola One, which Nikola unveiled on or about December 1, 2016, at a large event that was filmed and broadcast on the internet. During that event and later, MILTON claimed that the prototype Nikola One “fully functions and works, which is really incredible.” In fact, the Nikola One prototype was never completed and never functioned. Rather, the prototype was wholly missing significant parts, including gears and motors, and the control system (i.e., the system that communicates the driver’s directions to the vehicle) and other significant systems were missing or incomplete. Later, in or about January 2018, and despite the fact that the Nikola One prototype was never completed or operational, MILTON published on Twitter and also published on his own Twitter account a video in which the Nikola One appeared to be driving on its own power down a road with no incline. In fact, to film these clips, the Nikola One was towed to the top of a hill, at which point the “driver” released the brakes, and the truck rolled down the hill until being brought to a stop in front of the stop sign.
Also in 2020, at the same time he was spreading misinformation to investors generally to increase Nikola stock price, MILTON also made false and misleading statements about Nikola’s business and technology to a particular individual as part of an effort to use Nikola stock to make purchases, even when MILTON was subject to a lockup and so could not yet sell his stock. Specifically, MILTON made misrepresentations about Nikola’s business to an individual in order to induce that individual to accept options to purchase Nikola stock (the value of which had already been inflated by MILTON’s scheme to defraud retail investors) in lieu of cash for the purchase of a substantial ranch in Utah.
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In addition to the prison sentence, MILTON, 41, of Alpine, Wyoming, was sentenced to three years of supervised release, ordered to forfeit a property in Utah, and ordered to pay a fine of $1 million. Judge Ramos will set restitution in a future proceeding.
Mr. Williams praised the outstanding work of the U.S. Postal Inspection Service, which jointly conducted the investigation in this case with special agents from the U.S. Attorney’s Office. Mr. Williams further thanked the U.S. Securities and Exchange Commission, which filed a parallel civil action, for its cooperation.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Matthew Podolsky and Nicolas Roos are in charge of the case.
Three South Florida Residents Indicted for Kidnapping and MurderRead the Press Release
MIAMI – Today, a federal grand jury in the Southern District of Florida charged Avin Seetaram, a/k/a “Smalls,” 24, Somjeet Christopher Singh, a/k/a “Lil Chris,” 29, and Gavin Hunter, 18, all of Broward County, with murder for hire conspiracy, murder for hire, kidnapping conspiracy, kidnapping, and obstruction of justice, for their involvement in a violent kidnapping and murder of Miami-Dade resident Suren Seetal.
According to allegations contained in the previously filed criminal complaint and today’s indictment, Seetal was last seen alive on November 2, 2023, when he was leaving work. After leaving work, Seetal’s telephone was in the vicinity of Dr. HVAC, Singh’s air conditioning business, before going off network shortly thereafter. Seetal’s body was recovered at Big Cypress Reservation on November 21, 2023.
Seetaram’s arraignment hearing is scheduled for December 28. Hunter’s arraignment hearing is scheduled for January 2, 2024. Singh’s arraignment hearing is scheduled for January 3, 2024. If convicted of the charges contained in the federal indictment, Seetaram, Singh, and Hunter each face a mandatory sentence of life in prison or the death penalty.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO), Chief of Police Manuel A. Morales of the Miami Police Department (MPD), and Chief of Police Delrish L. Moss of the Miramar Police Department (Miramar PD), announced the charges.
FBI Miami, BSO, MPD, and Miramar PD investigated the case with invaluable assistance from the Fort Lauderdale Police Department, Miccosukee Police Department, Margate Police Department, Martin County Sheriff’s Office, Miami-Dade Police Department, Palm Beach County Sheriff’s Office, Pembroke Pines Police Department, and the Seminole Police Department. The FBI notified Seetal’s family after his remains were discovered. The family’s cooperation was crucial in allowing the investigation to continue and culminate with today’s announcement of charges being filed.
Assistant U.S. Attorney Abbie Waxman is handling the case. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.
This case is part of the Southern District of Florida’s Violence Reduction Partnership (“VRP”) initiative. Through the VRP, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida. The VRP strives to combat violent crime, narcotics trafficking, gang activity and firearms offenses by prosecuting offenders and working with community leaders and non-profit entities to provide preventive services to the local populations. The charges announced today are the result of the VRP’s law enforcement initiatives. Additional information regarding the VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
Anyone with information regarding this matter is encouraged to call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
The victim’s family asks that the public please respect their privacy during this difficult time.
A criminal complaint and an indictment contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 23-mj-04334 and 23-cr-20483.
Three Men Sentenced for Illegally Possessing Five Firearms Including a "Ghost Gun" at a Phoenix ResidenceRead the Press Release
PHOENIX, Ariz. – Victor Alfonso Apodaca Aguilar, 22, of Mexico, was sentenced last week by United States District Judge Douglas L. Rayes to 12 months in prison, followed by three years of supervised release.
Aguilar’s co-defendants, Jose Bernardo Vega-Ruiz, 27, and Hector Alvarado-Aboyte, 29, were each sentenced on November 20, 2023, to 15 months in prison followed by three years of supervised release. All three men, undocumented non-citizens from Los Mochis, Sinaloa, Mexico, pleaded guilty to Alien in Possession of a Firearm.
On March 9, 2023, the three men were living at a house in Phoenix where a federal search warrant was executed. Five firearms, including a “ghost gun,” were located at the residence.
Customs and Border Protection’s United States Border Patrol, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, conducted the investigation in this case. Assistant U.S. Attorney Lisa E. Jennis, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-23-510-PHX-DLR
RELEASE NUMBER: 2023-201_Aguilar# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Theft of 22 Firearms from J.T. Reid Gun Shop Leads to 12-Year Sentence for Biddeford ManRead the Press Release
PORTLAND, Maine: A Biddeford man was sentenced today in U.S. District Court in Portland for theft from a federally licensed firearms dealer (FFL), possession of a stolen firearm, being a felon in possession of a firearm, and possession of cocaine base with intent to distribute.
U.S. District Judge John A. Woodcock, Jr. sentenced Tomas Johnson, 40, to 12 years in prison followed by three years of supervised release. Johnson pleaded guilty on April 27, 2023.
On October 20, 2021, Johnson spent over an hour inside of J.T. Reid’s Gun Shop in Auburn. While there, he asked store employees about multiple firearms and handled a semi-automatic assault rifle with a large-capacity magazine attached to it. Johnson was prohibited from possessing firearms due to multiple prior felony convictions.
On October 24, 2021, Johnson threw a rock through the glass window of J.T. Reid’s front door. Johnson, wearing a hood, mask, and gloves, unlawfully entered the premises through the front door with a backpack and stole 22 firearms from J.T. Reid’s business inventory before fleeing the scene.
On October 28, 2021, as part of the investigation to locate and apprehend Johnson, an undercover officer called a phone number associated with Johnson and arranged to buy a quantity of cocaine base from him. When investigators saw Johnson walking toward the agreed-upon location for the drug deal, they exited their vehicle to approach him and he fled on foot. During the pursuit, Johnson discarded a loaded firearm that was later identified as one of the firearms stolen from J.T. Reid’s. At the time of his arrest, he was found in possession of a quantity of cocaine base.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Auburn Police Department and Lewiston Police Department investigated this case.
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Texas Man Sentenced to Probation for Forging Pesticide Applicator Licenses and Insurance CertificatesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Gallagher, age 73, of Crowley, Texas, was sentenced on December 14, 2023, by United States District Judge Robert D. Mariani to two years of probation, following his convictions for committing mail fraud. In pronouncing the sentence, Judge Mariani emphasized Gallagher’s age and significant health complications.
According to United States Attorney Gerard M. Karam, Gallagher, a former resident of Pennsylvania, owned and operated J. Douglas Environmental Systems, a fumigation and pest control company. Gallagher altered his and his employee’s expired pesticide applicator certifications, and an expired business license, and forged insurance policy certificates, associated with his work as a licensed applicator for pesticides restricted by the Environmental Protection Agency (EPA) and state environmental agencies. Gallagher provided the altered and forged documents to a pesticide supplier in Virginia, to various clients in Pennsylvania and New York, and to those clients’ auditors. As a result, his business secured over $888,000 worth of contracts through use of the falsified documents.
“The defendant’s decision to illegally portray himself as a trained and licensed commercial pesticide applicator, and his failure to properly inform his customers of the health hazards of a restricted use pesticide, resulted in presenting inexcusable health risks to the public,” said Acting Special Agent-in-Charge Allison Landsman of EPA’s criminal enforcement program in Pennsylvania. “EPA is committed to protecting the health of our communities and holding people criminally responsible for such egregious actions.”
The case was investigated by the EPA’s Criminal Investigation Division. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
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Statement from Acting U.S. Attorney Joshua S. Levy on Criminal Complaints Against Alleged Sex Buyers in Boston Commercial Sex Ring ProsecutionRead the Press Release
“Our office made it clear when we announced charges of a commercial sex ring case on Nov. 8, 2023, that the investigation was ongoing and that there would be accountability for the buyers who fuel the commercial sex industry. Today, a Homeland Security Investigations Task Force Officer with the Cambridge Police Department submitted applications for complaints against 28 sex buyers with the Cambridge District Court. Until probable cause has been found, no names will be released. If probable cause is established and criminal charges are issued by the Court, referrals will then be made to the Middlesex District Attorney’s Office.
In addition, we are working closely with Virginia state authorities to begin the referral process of sex buyers from the Virginia locations in this case.
The referral processes will remain ongoing.”St. Tammany Parish Men Indicted for Fentanyl Trafficking ConspiracyRead the Press Release
NEW ORLEANS – LARRY JAMES, age 23, ALVAREZ JOSEPH CYPRIAN, age 23, and ALSKIIN MILLICAN, age 21, all of St. Tammany Parish, were indicted on December 8, 2023, announced U.S Attorney Duane A. Evans. The indictment was unsealed following the arrest of JAMES, CYPRIAN, and MILLICAN.
In the indictment JAMES, CYPRIAN, and MILLICAN were charged with one count of conspiracy to distribute and possess with the intent to distribute a mixture or substance containing fentanyl, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 846. JAMES was charged with three counts of distribution of fentanyl and one count of possession with intent to distribute fentanyl, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 846. JAMES was also charged with being in possession of a stolen firearm, in violation of 18 U.S.C. § 922(j). CYPRIAN was charged with one count of distribution of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C). MILLICAN was charged with one count of distribution of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B).
If convicted of the drug conspiracy, JAMES and MILLICAN each a mandatory minimum sentence of 5 years, up to 40 years, a fine of up to $5,000,000, and at least 4 years of supervised release, and CYPRIAN faces up to 20 years imprisonment, a fine of up to $1,000,000, and at least 3 years of supervised release. Additionally, if JAMES is convicted of being in possession of a stolen firearm, he faces up to 10 years imprisonment, a fine of up to $250,000, and up to 3 years of supervised release. For each count charged against them, JAMES, CYPRIAN, and MILLICAN also face payment of a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is being investigated by Homeland Security Investigations and the St. Tammany Parish Sheriff’s Department. Assistant United States Attorney Rachal Cassagne of the Narcotics Unit is in charge of the prosecution.
Southwest Georgian Sentenced to Prison for Illegally Possessing a GunRead the Press Release
ALBANY, Ga. – A Colquitt County, Georgia, resident with a lengthy criminal history in the community and associated with the Ghostface Gangsters was sentenced to prison for illegally possessing a firearm when he was taken into custody while wanted on an outstanding warrant.
Marion C. Wells, 48, of Norman Park, Georgia, was sentenced to serve 85 months in prison to be followed by three years of supervised release by U.S. District Judge W Louis Sands on Dec.14. Wells previously pleaded guilty to possession of a firearm by a convicted felon on Sept. 19. The defendant is not eligible for parole.
“Repeat felony offenders who continually disregard the law and are caught with guns will face federal prosecution,” said U.S. Attorney Peter D. Leary. “This case was brought to our attention by the Colquitt County Sheriff’s Office and their local Project Safe Neighborhoods Task Force, a collaboration of law enforcement and community members working to find effective, evidence-based solutions to reduce crime.”
“Marion Wells has left a long trail of pain and destruction throughout his time in Georgia,” said Supervisory Senior Resident Agent Rich Bilson of FBI Atlanta’s Albany office. “This case shows when we work together and share information, good results occur. Every resource and every force multiplier we possess, will be used to accomplish that goal.”
“Marion Wells is a repeat offender and well-known methamphetamine distributor in our community going back at least twenty years; he is also a documented member of the criminal Ghostface Gangsters,” said FBI Task Force Officer (TFO) and Captain of Field Operations for the Moultrie Police Department Steve Exum. “Colquitt County is safer with Wells off the streets; we are thankful for our strong partnership with federal and state law enforcement working with us to make our community safer.”
According to court documents, Wells was wanted on an outstanding warrant for a parole violation Feb. 4, 2021, when Colquitt County deputies received a tip about his whereabouts and that he was in possession of a rifle. That day, deputies observed Wells driving in Moultrie, Georgia, and conducted a traffic stop. In plain view in the back seat was a rifle with a night scope loaded with 21 rounds of ammunition. There was also 20 grams of methamphetamine under the driver’s side back seat, along with a box of plastic Ziploc bags, two glass smoking devices and lighter, sixteen 9mm rounds and $3,390 cash. Wells has a lengthy criminal history in Colquitt County and the Southwest Georgia region spanning nearly three decades, including multiple felony drug charges, criminal attempt to commit a felony, eluding police officers and battery-family violence.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the FBI Gang Task Force and the Moultrie-Colquitt County Drug Enforcement Team.
Assistant U.S. Attorney Monica L. Daniels prosecuted the case for the Government.
Sisseton Man Sentenced to Federal Prison for Abusive Sexual Contact by ForceRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Sisseton, South Dakota man, convicted of Abusive Sexual Contact by Force. The sentencing took place on December 11, 2023, in Pierre, South Dakota.
Ira Alan Arias, age 48, was sentenced to 10 years in federal prison, followed by 10 years of supervised release. He was ordered to pay $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Arias was indicted for Aggravated Sexual Abuse of a Child by a federal grand jury in April of 2018. He pleaded guilty on October 23, 2023.
According to court documents, on or about May 3, 2015, Arias forcefully engaged in three sexual acts with the victim, who was 14 years old at the time of the sexual abuse. The sexual abuse occurred in a hotel room in Codington County.
This case was investigated by the FBI. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Arias was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
San Antonio Man Gets 20 Years in Federal Prison for Child PornographyRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced in federal court in San Antonio to 240 months in prison for distribution of child pornography.
According to court documents, David Alejandro Bautista, 32, distributed numerous files depicting the sexual abuse of prepubescent children engaged in sexually explicit conduct. Conducting a search warrant, federal agents seized 21 electronic devices from Bautista’s home, revealing more than 15,000 image files and over 8,200 video files containing child sexual abuse material.
In addition to imprisonment, Bautista was ordered to pay $84,000 restitution, special assessments in the amounts of $100, $5,000 and $35,000, and he must forfeit his electronic devices.
“This lengthy two-decade prison sentence reflects the horrendous damage that has been caused and furthered by the defendant’s actions,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Thank you to our law enforcement partners for their critical investigation. Together, we will continue to track down and prosecute offenders in the interest of protecting innocent children and keeping our communities safe.”
“Today, the defendant received a just punishment for his depraved actions. These sentences are important to help in the fight to protect children and to deter others from engaging in such crimes,” said Special Agent in Charge Craig Larrabee for the Homeland Security Investigations San Antonio Division. “HSI will continue to vigorously investigate and prosecute individuals who exploit our most vulnerable victims.”
HSI investigated the case with valuable assistance from the San Antonio Police Department.
Assistant U.S. Attorney Bettina Richardson 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 www.justice.gov/psc.
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Salvadoran Sentenced to Two Years in Federal Prison for Illegally Possessing Two Handguns and Threatening to Kill Domestic Abuse VictimRead the Press Release
INDIANAPOLIS- Ramon Alvarez-Hernandez, 40, of El Salvador has been sentenced to two years in federal prison after pleading guilty to unlawful possession of a Firearm by an Illegal Alien.
According to court documents, on February 22, 2023, IMPD officers were dispatched to investigate a domestic violence incident. Upon arrival, officers learned Alvarez-Hernandez punched, choked, and pulled a firearm on the victim, threatening to kill her. Officers observed bruises on the victim’s face and red marks on her neck. Alvarez-Hernandez was not present at this time.
The next day, officers learned that Alvarez-Hernandez threatened to shoot the victim if she cooperated with the police. Alvarez-Hernandez also threated the victim’s neighbor and attempted to question the neighbor about his relationship with the victim.
On April 12, 2023, Alvarez-Hernandez was arrested on an outstanding warrant during a traffic stop. Officers searched his person and located a two handguns and 19.3 grams of cocaine. Alvaerz-Hernandez is a citizen of El Salvador, and not lawfully present in the United States. Under federal law, individuals who have not obtained citizenship in the United States and are present without lawful status are prohibited from possessing firearms.
“Research shows that armed domestic abusers pose a profound risk to the safety of those closest to them and to the public at large. Our office, together with IMPD and HSI, will continue to prioritize the LEATH initiative to save the lives of those impacted by domestic violence,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers.
Homeland Security Investigations and IMPD investigated this case. The sentence was imposed by U.S. District Court Judge James R. Sweeney II. Judge Sweeney also ordered that Alvarez-Hernandez be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Jeremy C. Fugate, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
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Repeat Offender Sentenced to 7 Years for Methamphetamine TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Devin A. Lewis, 38, La Crosse, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 7 years in prison followed by 5 years of supervised release for possessing methamphetamine with intent to distribute. Lewis pleaded guilty to this charge on August 9, 2023.
In February 2023, Lewis was a passenger in a vehicle that was stopped by a La Crosse police officer for a traffic violation. During the stop, Lewis jumped out of the vehicle and attempted to flee. After being caught, Lewis physically struggled with an officer to resist arrest. Retracing Lewis’s path, officers found a bag containing over 200 grams of prepackaged methamphetamine and a smaller amount of fentanyl. Text messages on Lewis’s phone indicated he was intending to sell these drugs.
Lewis has a lengthy criminal history involving the trafficking of controlled substances, including a number of prior convictions where he has tried to run from law enforcement and resist arrest. Lewis’s convictions also include causing substantial injury to an officer and armed robbery.
Judge Peterson acknowledged that Lewis’s conduct was the last link in a chain of criminality and that this activity degrades the community. Judge Peterson also noted that the volume of Lewis’s drug dealing extended beyond the level of supporting personal use.
The charge against Lewis was the result of an investigation conducted by the La Crosse Police Department. Assistant U.S. Attorneys Anita Marie Boor and Steven Ayala prosecuted this case.
Putnam County Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Gregory Alan Haston II, 40, of Scott Depot, was sentenced today to three years and nine months in prison, to be followed by three years of supervised release, for possession with intent to distribute fentanyl.
According to court documents and statements made in court, on January 2, 2023, Haston was a passenger in a vehicle pulled over by a law enforcement officer in the St. Albans area. During a search of the vehicle, the officer seized a bag that he found on the floor near Haston’s feet. Haston admitted that the bag contained approximately 76 grams of fentanyl, which he possessed with the intent to distribute.
United States Attorney Will Thompson made the announcement and commended the investigative work of the St. Albans Police Department.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Lesley C. Shamblin prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-136.
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Physician convicted for prescription drug conspiracy resulting in deathRead the Press Release
Shakeel Kahn, age 57, was convicted by a federal jury of crimes involving drug distribution, firearms possession, and money laundering. According to court records and trial evidence, between 2011 and 2016, Kahn was a licensed medical doctor who operated clinics in Casper, Wyoming, and Fort Mohave, Arizona. Kahn unlawfully distributed drugs by writing prescriptions for large quantities of opioids without any legitimate medical need in exchange for cash payments from his customers. Kahn possessed firearms in furtherance of his unlawful drug distribution, and at least one person died after overdosing on drugs distributed by Kahn.
The jury returned its verdict on Dec. 15 following a six-week week trial before U.S. District Court Alan B. Johnson in Casper.
Kahn was previously convicted of these same crimes in 2019, but those convictions were overturned by the United States Supreme Court due to a faulty jury instruction.
This crime was investigated by the Drug Enforcement Administration, IRS Criminal Investigation and the Wyoming Division of Criminal Investigation. The case was prosecuted by the U.S. Attorney’s Office for the District of Wyoming.
Philadelphia Man Convicted by Jury Trial for Several CarjackingsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Amir Wilson, 22, of Philadelphia, Pennsylvania, was convicted by a jury of conspiracy, two counts of carjacking, and using or carrying a firearm during a crime of violence arising from his role in two carjacking incidents that took place in Philadelphia in May 2021.
On the evening of May 15, 2021, at approximately 10:30 p.m., Wilson and others pulled alongside a man on his way to work, produced guns, and demanded his keys while holding him at gunpoint. The group then fled the scene in their original vehicle and the victim’s carjacked vehicle. Hours later, on May 16, 2021, at approximately 3:00 a.m., Wilson and others pulled alongside two men who were leaving a graduation celebration for a friend. The carjackers again produced guns and demanded the keys to that victim’s vehicle and fled the scene in the two cars. A short time later, members of the Philadelphia Police Department spotted the carjacked vehicle and attempted to stop it. The vehicle fled from police, leading them on a high-speed chase that was discontinued for safety reasons. Police found the second victim’s car abandoned a short time later.
On May 16, 2021, at approximately 5:15 p.m., members of the Philadelphia Police Department were on routine patrol and spotted the first victim’s vehicle. They attempted to stop the car, but it fled from police, leading them on another chase. Police caught up to the car after it struck another vehicle and crashed through a fence at Germantown and Hunting Park Avenues and saw Wilson flee from the car on foot. He was apprehended a short time later. Digital and forensic evidence linked Wilson to the two carjacking incidents.
“Amir Wilson’s guilty verdict reaffirms our ongoing commitment to keeping our citizens safe,” said U.S. Attorney Romero. This case is another excellent example of ATF’s continued efforts working with our partners and proudly serving as part of the joint carjacking task force led by the Philadelphia Police Department. We will continue working with our local, state, and federal partners in making sure violent individuals are held accountable when they threaten the safety of the community.”
“The type of violent crimes committed by the defendant are the very reason the carjacking task force was created,” said ATF Special Agent in Charge Eric DeGree. “The ATF will continue to support the Philadelphia Police Department and the United States Attorney’s Office, as we seek to create a safer city for the citizens of Philadelphia.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Priya T. De Souza and Martin E. Howley, Jr.
Over $118,000 in Fraud Proceeds Seized and Will Be Returned to VictimRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on November 29, 2023 United States District Judge Greg G. Guidry entered a Final Judgment of Forfeiture against more than $118,000 worth of cryptocurrency seized from an individual involved in a pervasive computer-based scheme. The money will be returned to the victim.
According to the Verified Complaint for Forfeiture in Rem filed by the U.S. Attorney’s Office, in about January 2023, unidentified criminal actors colluded to access, without authorization, a computer belonging to a resident of the Eastern District of Louisiana. This unlawful access caused a pop-up message to appear on the victim’s computer screen instructing the victim to call a number purporting to be Apple Support for further assistance. The victim called the number and a hacker, impersonating Apple Support personnel, told the victim that hackers had accessed the victim’s computer and made unauthorized financial charges to that account. The victim was instructed to enter a series of commands in the terminal screen so the computer could run an activity monitor and remove the purported hackers’ access to the victim’s computer.
Approximately one week later, another criminal actor impersonating a financial institution representative, called and advised the victim that the Federal Reserve had instructed the victim to transfer money from the financial institution to Coinbase, a cryptocurrency exchange platform. The impersonator said that the Federal Reserve advised that the transfer must occur for safekeeping purposes until the Apple Support activity monitor program was complete. As a result, between July 29, 2022, and August 8, 2022, the victim transferred approximately $118,753.47 to a Coinbase account.
Shortly thereafter, the victim became concerned about the legitimacy of the scheme and contacted the Federal Reserve, Consumer, Financial Protection Bureau, Office of Inspector General (OIG CFPB OIG). OIG CFPB OIG and United States Secret Service analysts successfully traced funds to the victim’s Coinbase deposits and learned that the funds were quickly laundered through a series of cryptocurrency addresses. Through the issuance of legal process and, ultimately, the Final Judgment of Forfeiture, the funds were recovered and will soon be returned to the victim. Civil forfeiture prevents unjust enrichment where criminal prosecution is unfeasible.
Cyber incidents and data breaches such as this are increasingly common and continue to proliferate globally. But they can be prevented. Here are some tips:
- Configure your firewalls to block access to known malicious IP addresses.
- Update operating systems, software and firmware on devices.
- Be on the lookout for requests to transfer funds, especially if the request is pronounced with a sense of urgency.
- Be cautious with strangers. Don’t send payments to unknown people or organizations seeking monetary support or urge immediate action.
For more information visit the Secret Service’s Preparing for a Cyber Incident page.
U.S. Attorney Evans praised the work of the United States Secret Service and the Federal Reserve, Consumer Financial Protection Bureau, Office of Inspector General in investigating this matter. Assistant United States Attorney Alexandra Giavotella, Asset Forfeiture Coordinator, of the Monetary Penalties and Recovery Unit, handled this case.
Orlando Restauranteur Sentenced to Federal Prison for Tax FraudRead the Press Release
Orlando, FL – U.S. District Judge Roy Dalton, Jr. today sentenced Manuel Tato to four years and nine months in federal prison for willfully failing to pay employment taxes. The court also ordered Tato to pay a $250,000 fine and $93,690.66 in restitution. Tato had pleaded guilty on April 27, 2023.
According to court documents, Tato owned and operated multiple restaurants in the Orlando area from at least 2010 to 2017, including Spice Modern Steakhouse. Tato was also the owner and operator of an entity called Core Food Group, an affiliated company for Tato’s restaurants that was responsible for processing payroll for the employees of Tato’s restaurants. Tato employed approximately 645 restaurant workers between 2010 and 2017 and had a duty to collect and pay over employment taxes on behalf of those employees. Employment taxes include federal income tax, Medicare, and Social Security.
While Tato withheld employment taxes from his employees’ paychecks and informed his employees that he was doing so on their paystubs, he never actually paid those taxes to the Internal Revenue Service. During the charged time frame, July 2016 to March 2017, Tato failed to pay the Internal Revenue Service $93,690.66. Throughout the entire time Core Food Group existed, Tato failed to pay over $2 million in taxes that he had withheld from his employees and owed in relation to their employment. Tato used a complex corporate structure, different Federal Employer Identification Numbers, and numerous bank accounts to attempt to disguise his criminal activity.
During this time, Tato maintained a lavish lifestyle, sending his children to private school, and living in a million-dollar mansion with a private tennis court.
Additionally, in 2020, and after being informed that he was under investigation for failing to pay employment taxes, Tato and his family purchased a beach house.
“Restaurant owners who neglect their responsibility to file or pay employment taxes are placing themselves in a heated situation by betraying the trust bestowed upon them by their employees and the American public.” said Tara K. Reed, IRS-CI Acting Special Agent in Charge. “Today’s sentencing cooks up a fresh reminder to those who prioritize a luxurious lifestyle over fulfilling their obligations towards hardworking employees and the nation's tax requirements will not escape justice.”
This case was investigated by the Internal Revenue Service. It was prosecuted by Assistant United States Attorney Dana Hill and Special Assistant United States Attorney Rachel S. Lyons.
One of two Nigerian citizens who defrauded U.S. Pandemic programs of more than $1 million pleads guiltyRead the Press Release
Tacoma – One of two Nigerian citizens who resided in Canada, pleaded guilty today in U.S. District Court in Tacoma to wire fraud and aggravated identity theft for defrauding pandemic unemployment benefit programs in multiple states, announced Acting U.S. Attorney Tessa M. Gorman. Sakiru Olanrewaju Ambali, 45, was arrested in February 2023, in Frankfurt, Germany, as he traveled back to Canada from Nigeria. Ambali was detained in Germany and was extradited to the U.S. last August. Prosecutors will recommend a sentence of five years in prison when Ambali is sentenced by U.S. District Judge Robert J. Bryan on March 14, 2024.
In his plea agreement Ambali admits he and codefendant Fatiu Ismaila Lawal, 45, used the stolen identities of thousands of workers to submit over 1,700 claims for pandemic unemployment benefits to over 25 different states, including Washington State. In total, the claims sought approximately $25 million, but the conspirators obtained approximately $2.4 million, primarily from pandemic unemployment benefits. As part of his plea agreement Ambali has agreed to make restitution of $1,035,107.
The co-conspirators allegedly submitted claims for pandemic unemployment benefits to New York, Maryland, Michigan, Nevada, California, Washington and some 19 other states. Using 13 Google accounts, they filed some 900 claims. The co-conspirators also allegedly established four internet domain names that they then used for fraud – creating some 800 different email addresses that were used for fraud. Between March 2020 and December 2021, Ambali admits he personally submitted at least 620 claims for unemployment benefits that paid more than $1 million.
Additionally, between 2018 and 2021, Ambali used stolen personal information of eight U.S. citizens to try to claim tax refunds totaling more than $40,000. The IRS caught most of the fraud.
Ambali also attempted to use the stolen American identities for Economic Injury Disaster Loans (EIDL) to defraud the Small Business Administration (SBA). The SBA caught most of the fraud and paid only $2,500.
Ambali and his co-conspirators had the proceeds of their fraud sent to cash cards or to “money mules” who transferred the funds according to instructions given by the co-conspirators. They also allegedly used stolen identities to open bank accounts and have the money deposited directly into those accounts for their use.
Lawal was arrested in Canada in February and is pending extradition.
The National Unemployment Fraud Task Force provided a lead on this case to the investigative team in Western Washington. The case was investigated by the FBI with assistance from U.S. Postal Inspection Service (USPIS) and the Department of Labor Office of Inspector General (DOL-OIG). Also contributing to the investigation were Washington State Employment Security Division (ESD), the Internal Revenue Service Criminal Investigation (IRS-CI), and the Small Business Administration (SBA).
The case is being prosecuted by Assistant United States Attorney Cindy Chang of the Western District of Washington. DOJ’s Office of International Affairs is assisting.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
New York and Delaware Companies are Enjoined from Manufacturing and Distributing Adulterated and Misbranded Dietary SupplementsRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, Brian M. Boynton, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division, and Michael C. Rogers, MS, Acting Associate Commissioner, of the U.S. Food and Drug Administration (FDA)’s Regulatory Affairs announced today that two New York companies, a Delaware company, and the companies’ owner have been enjoined from distributing and manufacturing adulterated and misbranded dietary supplements in violation of the Federal Food, Drug, and Cosmetic Act (FDCA).
“Consumers trust that dietary supplements they purchase are unadulterated. My Office is working diligently with our partners at the Justice Department’s Consumer Protection Branch and the FDA to ensure that these products are what they purport to be and safe. When they are not, we will take all appropriate action to protect consumers.” stated United States Attorney Peace.
“Dietary supplement manufacturers and distributors have an important responsibility to ensure product quality and safety,” stated Principal Deputy Assistant Attorney General Boynton. “The Justice Department will continue to work closely with the FDA and take action against manufacturers and distributors who fail to abide by laws designed to protect public health.”
“It is imperative that dietary supplement manufacturers comply with the FDA’s regulatory requirements to help ensure product safety and protect consumers,” said Acting Associate Commissioner Michael C. Rogers, MS, for FDA’s Regulatory Affairs. “When evidence of non-compliance is identified, the agency holds dietary supplement manufacturers responsible. The FDA is dedicated to exercising its full authority under the law to take action against adulterated dietary supplements, as part of our ongoing commitment to protect the health of U.S. consumers.”
A civil complaint filed on October 18, 2023 at the request of the U.S. Food and Drug Administration (FDA), alleged that Total Body Nutrition LLC, TBN Labs LLC, and Loud Muscle Science, LLC (collectively, “TBN companies”), and the companies’ owner, Mohammed Islam, violated the FDCA at the companies’ facility in Hauppauge, Long Island, and their previous facility in Edgewood, New York, by manufacturing and distributing adulterated and misbranded dietary supplements. The complaint alleges that Islam and the TBN companies violated the FDCA by manufacturing dietary supplements without establishing product specifications for the finished batches and without testing or examining the finished batches to verify that they met product specifications, and by using dietary ingredients in their dietary supplements without first testing or examining the ingredients to verify their identity. The complaint also alleged that FDA inspected the TBN companies’ current and previous facilities four times, in 2017, 2018, 2021, and 2023, and found violations of the FDCA at each inspection. According to the complaint, FDA also issued Islam and the TBN companies warning letters in 2016, 2017, and 2019.
Islam and the TBN companies agreed to settle the suit and be bound by a consent decree of permanent injunction. The negotiated consent decree entered by the court enjoins Islam and the TBN companies from violating the FDCA, and requires, among other things, that Islam and the TBN companies comply with the dietary supplement current good manufacturing practice regulations and the dietary supplement labeling provisions of the FDCA and its implementing regulations. Further, Islam and the TBN companies must destroy all of their adulterated dietary supplements.
Assistant United States Attorney Michael Blume of the Eastern District of New York and Trial Attorney Kimberly R. Stephens of the Justice Department’s Consumer Protection Branch are handling the case with assistance from Associate Chief Counsel Roselle Oberstein of the FDA’s Office of the Chief Counsel.
In March 2022, Mr. Peace announced the creation of a Consumer Protection Team in the Office’s Civil Division. The Consumer Protection Team has focused on protecting the health, safety, economic security, and dignity of individuals in the Eastern District of New York and nationwide, including our most vulnerable residents.
The claims resolved by the consent decree announced today are allegations only, and there has been no determination of liability.
E.D.N.Y. Docket No.: 23-CV-9073