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2 February 2024
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 1was:
Dominic Earl Hall, 42, of Fountain, Colorado, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Hall faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Hall was detained pending further proceedings. The Drug Enforcement Administration, Billings Police Department and Yellowstone County Sheriff’s Office conducted the investigation. PACER case reference. 22-150.
Steven Scott McGlaughn, 52, of Billings, on charges of felon in possession of a firearm. If convicted of the most serious crime, McGlaughn faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. McGlaughn was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Yellowstone County Sheriff’s Office conducted the investigation. PACER case reference. 23-148.
Appearing on Jan. 30 was:
Kelsi Dorothy Jean Cochran, 31, of Billings, on felon in possession of a firearm. If convicted of the most serious crime, Cochran faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Cochran was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department conducted the investigation. PACER case reference. 24-05.
Danielle Lee Knowshisgun, 33, of Billings, on charges of felon in possession of a firearm and possession of a stolen firearm. If convicted of the most serious crime, Knowshisgun faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Knowshisgun was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. PACER case reference. 24-11.
Enrique Duke Arena III, 28, of New York City, New York, on charges of conspiracy to commit bank fraud, bank fraud and aggravated identity theft. If convicted of the most serious crime, Arena faces a maximum of 30 years in prison, a $1 million fine and five years of supervised release on the bank fraud charge and a mandatory two years in prison, consecutive to any other sentence, a $250,000 fine and one year of supervised release on the aggravated identity theft charge. Arena was released pending further proceedings. The FBI, Billings Police Department and Bozeman Police Department conducted the investigation. PACER case reference. 23-08.
Lucious Machiavelli, 47, of Billings, on charges of theft from a federal firearms licensee, possession of stolen firearms and felon in possession of firearms. If convicted of the most serious crime, Machiavelli faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Machiavelli was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. PACER case reference. 24-12.
Francisco Jose Nava, 30, of Billings, on charges of felon in possession a firearm. If convicted of the most serious crime, Nava faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Nava was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department conducted the investigation. PACER case reference. 24-13.
Travis Dean Two Two, Sr., 35, of Lame Deer, on charges of attempted coercion and enticement and attempted sex trafficking of a minor. If convicted of the most serious crime, Two Two faces a mandatory minimum of 10 years to life in prison, a $250,000 fine and five years of supervised release. Two Two was detained pending further proceedings. The FBI conducted the investigation. PACER case reference. 24-18.
Dawn Louise Saddler-Lee, aka Dawn Louise Rogeness, 31, of Billings, on charges of bank fraud, aggravated identity theft and felon in possession of firearm. If convicted of the most serious crime, Saddler-Lee faces a maximum of 30 years in prison, a $1 million fine and five years in prison on the bank fraud charge and a mandatory two years in prison, consecutive to any other sentence, a $250,000 fine and one year of supervised on the aggravated identity theft charge. Saddler-Lee was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Billings Police Department and Yellowstone County Sheriff’s Office conducted the investigation. PACER case reference. 24-16.
Appearing on Jan. 26 was:
Rodney Paul Burke, 58, of Roundup, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Burke faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Burke was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Musselshell County Sheriff’s Office conducted the investigation. PACER case reference. 24-04.
Appearing on Jan. 25 was:
Schuyler Stewart Zwar, 47, of Spokane, Washington, on charges of false statement during a firearms transaction. If convicted of the most serious crime, Zwar faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Zwar was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. PACER case reference. 24-17.
Appearing on Jan. 23 was:
Israel Gonzales-Pacheco, 52, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Gonzales-Pacheco faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Gonzales-Pacheco was detained pending further proceedings. Homeland Security Investigations, the Billings Police Department and Eastern Montana High Intensity Drug Trafficking Area Task Force conducted the investigation. PACER case reference. 24-10.
Joshia John Culverson, 18, of Billings, on charges of possession of stolen firearm and possession of firearm with obliterated serial number. If convicted of the most serious crime, Culverson faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Culverson was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department conducted the investigation. PACER case reference. 24-06.
Sam Dean Glenn, 34, of Billings, on charges of felon in possession of a firearm. If convicted of the most serious crime, Glenn faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Glenn was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. PACER case reference. 24-09.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Jan. 30 was:
Jay Neil Heikkila, 81, of Hamilton, on charges of conspiracy to commit money laundering and money laundering. If convicted of the most serious crime, Heikkila faces a maximum of 20 years in prison, a $500,000 fine and three years of supervised release. Heikkila was released pending trial. The FBI, Ravalli County Sheriff’s Office, New York State Police and Stokes County (South Carolina) Sheriff’s Office conducted the investigation.PACER case reference. 24-05.
Michael Davis Bryant, 48, of Spokane, Washington, on charges of possession with intent to distribute controlled substances. If convicted of the most serious crime, Bryant faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Bryant was detained pending further proceedings. The Drug Enforcement Administration, Homeland Security Investigations, Flathead Tribal Police, Lake County Sheriff’s Office, Montana Highway Patrol, U.S. Marshals Service and Bureau of Indian Affairs conducted the investigation. PACER case reference. 23-31.
Appearing on Jan. 25 was:
Kevin Richard Kuntz, 31, of Bozeman, on charges of possession with intent to distribute cocaine and distribution of cocaine. If convicted of the most serious crime, Kuntz faces a maximum of 20 years in prison, a $1 million fine and at least three years of supervised release. Kuntz was released pending further proceedings. The FBI, Drug Enforcement Administration, Bozeman Police Department and Gallatin County Sheriff’s Office conducted the investigation. PACER case reference. 24-02.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Jan. 30 was:
Jordan Jawan Gonzales, 32, of Helena, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Gonzales faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and four years of supervised release. Gonzales was detained pending further proceedings. The Missouri River Drug Task Force in Bozeman and Helena, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and U.S. Postal Service Office of Inspector General conducted the investigation. PACER case reference. 23-21.
Travis Lee Brown, 41, of Yakima, Washington, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm. If convicted of the most serious crime, Brown faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and four years of supervised release on the drug charge and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the charge of possessing a firearm in furtherance of drug trafficking. Brown was detained pending further proceedings. The Tri-Agency Task Force, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. PACER case reference. 23-51.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Gloucester County Man Admits Violating the Travel Act by Way of Money LaunderingRead the Press Release
NEWARK, N.J. – A New Jersey man admitted violating the Travel Act using the internet to engage in money laundering, U.S. Attorney Philip R. Sellinger announced today.
Juan Perez-Aguila, 69, of Paulsboro, New Jersey, pleaded guilty on Feb. 1, 2024, before U.S. District Judge Brian Martinotti in Newark federal court to an information charging him with one count of interstate and foreign travel or transportation in aid of racketeering enterprises.
According to documents filed in this case and statements made in court:
Perez-Aguila unlawfully accessed and controlled customer accounts of a company offering point-of-sale services and issued chargeback refunds from those accounts to other accounts that he controlled. Once he obtained the stolen funds from the customer accounts, Perez-Aguila laundered more than $20,000 of the criminally derived proceeds into another bank account that he controlled. Perez-Aguila misappropriated over $1 million from the victims of his fraudulent scheme.
The violation of the Travel Act carries a maximum penalty of five years in prison and a fine of up to $250,000. Sentencing is scheduled for June 13, 2024.
U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspection Service in Newark, under the direction of Christopher A. Nielsen, Philadelphia Division, and Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation.
The government is represented by Assistant U.S. Attorney Eric Suggs of the U.S. Attorney’s Office in Trenton.
perezaguila.information.pdfGeorgia Woman Accused of Defrauding St. Charles County WidowerRead the Press Release
ST. LOUIS – A woman accused of defrauding a 74-year-old widower in a St. Charles County, Missouri nursing home has turned herself in to authorities in Georgia.
Shanita Gray, 51, was indicted by a grand jury in U.S. District Court in St. Louis on Dec. 6, 2023, with ten counts of wire fraud, one count of use of a counterfeit access device and four counts of aggravated identity theft. The indictment was unsealed Friday.
The indictment accuses Gray of using the personal information of the widower and a fraudulently obtained financial power of attorney to access the credit and debit cards and financial accounts of the alleged victim, identified in court documents as “D.H.”
Gray notified the administrators of D.H.'s nursing home that she was seeking emergency guardianship of him, the indictment says, and concealed the existence of D.H.'s half-sister. She told D.H.’s son that she would manage his financial affairs.
Gray searched D.H.'s Berkley, Missouri home to locate personal identifying information, identify his financial accounts, take possession of his debit and credit cards and obtain samples of his handwriting, the indictment says. When D.H. refused to sign a power of attorney authorizing her to manage his financial affairs, Gray added his name to a form in which she sought a court appointment to be guardian and conservator that had already been notarized, it says. She obtained online access to his financial accounts, added herself as a beneficiary, changed his contact information on financial accounts to her Georgia address and emailed the bogus power of attorney document to financial institutions, the indictment alleges.
The indictment says Gray obtained more than $300,000 by selling shares in D.H.’s investment accounts, transferring funds out of his bank accounts, drawing checks for her benefit and the benefit of others, conducting electronic funds transfers to pay her bills and redirecting D.H.'s pension and retirement checks to her personal and business bank accounts.
The wire fraud charge is punishable by up to 20 years in prison. The counterfeit access device charge carries a maximum prison term of 10 years and the aggravated identity theft carries a penalty of two years in prison, consecutive to all other charges. Each charge also carries the possibility of a fine of up to $250,000. If convicted, restitution would be mandatory.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.The Social Security Administration Office of Inspector General and the Maryland Heights Police Department investigated the case. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Georgia Man Sentenced to Five Years in Federal Prison for Tax Fraud and Operation of Bogus Credit Repair BusinessesRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Kevin Edward Hargrave a/k/a “Kevin Edward Wade,” of Locust Grove, Georgia, to five years in federal prison for conspiring to commit wire fraud and to defraud the United States for the purpose of impeding the lawful functions of the Internal Revenue Service (IRS). As part of his sentence, the court also entered an order of forfeiture in the amount of $1.5 million, the proceeds of the wire fraud conspiracy. Hargrave was also ordered to pay restitution to his victims, including $418,115 to the IRS. Hargrave entered a guilty plea on October 4, 2022.
According to court documents, Hargrave controlled a number of companies, including WSA Optimization Firm, Inc., that purported to offer “credit repair services” to the public. Hargrave promoted these services through multiple company-specific websites, radio advertising, emails, text messages, and posts on YouTube.com and other social media sites. These marketing campaigns promised to “erase bad credit” information from consumers’ credit reports within 90 days – “guaranteed.” Notwithstanding these promises, multiple customers reported to federal investigators that they paid for credit repair services, saw no such results, and were denied refunds.
When an undercover federal agent called to inquire about these credit repair services, he was told that WSA Optimization used “federal laws to remove all negative derogatory items off your credit.” Further, the agent was told “we are able to remove those items off your credit without you paying [creditors] back.” A company representative also claimed that WSA Optimization employed a team of 5 attorneys and 23 paralegals who worked to remove negative credit information from credit reports.
In reality, Hargrave did not employ a team of attorneys or paralegals. Instead, supposedly to improve its customers’ credit scores, company representatives would send form letters to each credit reporting agency and falsely claim that all negative credit information on the customers’ credit reports was the product of identity theft or fraud. These letters – which did not disclose that they were mass produced by WSA Optimization – were sent in envelopes listing a fictional return address.
An analysis of bank records established that more than $8 million in deposits were made into the business bank accounts controlled by Hargrave and a family member, and that significant funds were diverted from those accounts to pay for luxury vehicles, mortgage payments on their residence, personal credit cards, jewelry, items at retail stores, utilities, restaurants, and other living expenses. For example, funds were used to make over $128,000 in mortgage payments on Hargrave’s residence in Fernandina Beach, which he sold in 2022 for $870,000. Similarly, approximately $300,000 was used to make down-payments and monthly financing payments on automobiles owned by Hargrave and a family member, including a Lamborghini Gallardo, a Rolls Royce Wraith, a Porsche Boxster, a Range Rover, a Ford F-150, and two Mercedes Benz vehicles.
An analysis of Hargrave’s real and personal property, certain business records, credit card statements, and the bank records collectively demonstrate that his joint tax returns for tax years 2016 through 2019 underreported taxable income and improperly claimed certain business expenses. A financial investigator with the IRS estimated that since 2015, by underreporting his and a family member’s tax liability, Hargrave has caused the United States to lose approximately $418,115 in tax revenue.
“It was clear that Mr. Hargrave believed the law did not apply to him,” stated IRS Criminal Investigation Acting Special Agent in Charge Lani Rosado-Espinal. “Despite being in the midst of a global pandemic, he stole millions of dollars from vulnerable people, who were struggling financially and defrauded the IRS. IRS-CI and the FBI will continue to partner with the United States Attorney’s Office to identify, investigate and assist in the prosecution of criminals like Mr. Hargrave, whose greed leads them to prey on others, including U.S. taxpayers.”
“Fraud and corruption pose a fundamental threat to our national security and our way of life,” said Michael C. Malsch, Assistant Special Agent in Charge of the FBI Jacksonville Division. “The FBI is committed to coordinating with our partners and aggressively pursuing those who take advantage of others for their personal gain. This sentencing should serve as a warning to others who might engage in these types of schemes.”
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Fulton Man Sentenced to 15 Years for Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – A Fulton, Mo., man and a Florence, Mo., woman were sentenced in federal court today for their roles in a conspiracy to distribute methamphetamine.
Matthew Gunnar White, 32, of Fulton, and Krista Huddleston, 30, of Florence, were sentenced in separate appearances before U.S. District Judge Roseann Ketchmark. White was sentenced to 15 years in federal prison without parole. Huddleston was sentenced to two years and six months in federal prison without parole.
White and Huddleston each pleaded guilty to conspiracy to distribute methamphetamine. According to court documents, White was responsible for 5.69 kilograms of methamphetamine.
White was a passenger in a car, driven by Huddleston, that fled from law enforcement officers on Dec. 6, 2021. During the pursuit, White threw baggies of methamphetamine out the front passenger window of the vehicle. The vehicle drove off the roadway into a field on County Road 302. The vehicle then left the field and reentered the roadway. A deputy disabled the vehicle, and White and Huddleston were taken into custody. White had methamphetamine residue covering his clothing. Loose methamphetamine was found scattered throughout the front interior of the vehicle.
The baggies of methamphetamine, which weighed a total of 107 grams, were recovered by officers. A sealed canned goods container, which contained approximately 456 grams of methamphetamine, also was found in the field along the flight path. Four additional canned goods containers that contained a total of approximately 929 grams of methamphetamine were recovered from the front of the vehicle.
According to court document, White has an extensive criminal history, including a felony drug conviction and crimes of violence.
Co-defendant Christopher James Breaux, 39, of Mexico, Mo., was sentenced on Sept. 7, 2023, to 18 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Jefferson City, Mo., Police Department, the Mid Missouri Unified Strike Team and Narcotics Group (MUSTANG), the Osage County, Mo., Sheriff’s Department, and the Callaway County, Mo., Sheriff’s Department.
Former USPS Employee Pleads Guilty for Stealing the Contents of U.S. MailRead the Press Release
NEW ORLEANS, LOUISIANA –TOI SMITH, age 26, a resident of New Orleans, pled guilty on January 30, 2024 to theft of mail by a postal employee, in violation of Title 18, United States Code, Section 1709, announced U.S. Attorney Duane A. Evans. SMITH’S sentencing is set for May 14, 2024.
SMITH faces up to five years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a $100 mandatory special assessment fee. On or about July 2022, SMITH stole first class letters entrusted to her as a postal carrier and removed credit cards contained in the mail.
The case was investigated by the United States Postal Service, Office of the Inspector General. Assistant United States Attorney Mary Katherine Kaufman of the General Crimes Unit is in charge of the prosecution.
Former National Guard Task Force Member Indicted for Illegal Firearm Possession that Came to Light During an Investigation into Leaks of Sensitive Operational InfoRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Ruby Celly Uribe, 34, of Antelope, charging her with illegal possession of a machine gun and a short-barreled rifle, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Uribe was assigned to the logistics shop at the California National Guard Headquarters in Mather and was a member of the Counterdrug Task Force (CDTF). The CDTF supports local, tribal, and federal law enforcement entities in the interdiction of drug trafficking organizations. While assigned to this unit, Uribe leaked information about upcoming drug raids to a person she knew to be involved with drug dealing. Text messages recovered from Uribe’s phone revealed she shared sensitive information about upcoming operations, including the date and location and the number of military vehicles and aircraft involved.
A federal search warrant of Uribe’s residence resulted in the discovery of a short-barreled rifle. The firearm had been modified to fire in full-automatic mode as a machine gun. In addition, it was a privately made firearm with no serial number, commonly referred to as a ghost gun. A search of Uribe’s cellphone revealed that she was also engaged in trafficking other non‑serialized, short-barreled machine guns.
This case is the product of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the California Military Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, Uribe faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty 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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Former MoviePass Executive Found Guilty of Embezzling from Employer and Parent Company to Repay Coachella Festival DebtRead the Press Release
LOS ANGELES – A former executive at cinema subscription service MoviePass Inc. has been found guilty by a jury of embezzling at least $260,000 from MoviePass and its parent company to repay money he borrowed to produce an event at the Coachella music festival, the Justice Department announced today.
Khalid Itum, 43, of Hollywood, was found guilty Thursday afternoon of two counts of wire fraud. The jury in the case acquitted Itum of two counts of money laundering.
According to evidence presented at a three-day trial, Itum was a MoviePass executive from November 2017 until March 2019. MoviePass was a New York-based company that charged subscribers a flat monthly fee in exchange for credits they could spend on movie tickets from any theater in MoviePass’s network of participating cinemas. In August 2017, Helios & Matheson Analytics (HMNY), a New York-based data analytics company, acquired MoviePass.
In the spring of 2017, Itum registered Kaleidoscope Productions LLC, a Los Angeles-based company that provided production and marketing services. That year, Itum, through Kaleidoscope, organized a promotional event at the annual Coachella Valley Music and Arts Festival in Indio. Neither MoviePass nor HMNY participated in the Coachella event.
Itum borrowed money from two individuals to help fund Kaleidoscope’s costs at Coachella. To repay the borrowed money, Itum later submitted sham invoices to HMNY for expenses and services purportedly rendered by Kaleidoscope. Itum caused HMNY and MoviePass employees to wire money from MoviePass and HMNY accounts to a Kaleidoscope bank account to pay the sham invoices. Itum concealed his scheme by lying to HMNY’s finance department that Kaleidoscope had been used to pay legitimate MoviePass expenses from the 2018 Coachella festival and provide other consulting services.
Itum caused HMNY and MoviePass a total loss of at least $260,000.
United States District Judge Virginia A. Phillips scheduled an April 29 sentencing hearing, at which time Itum will face a statutory maximum sentence of 20 years in federal prison for each wire fraud count.
The FBI’s New York Field Office investigated this matter. The FBI’s Los Angeles Field Office provided substantial assistance.
Assistant United States Attorneys David Y. Pi and Mark Aveis of the Major Frauds Section handled the trial in this matter.
Former Broward Sheriff’s Office lieutenant charged with COVID-19 relief fraud schemeRead the Press Release
MIAMI – On Jan. 5, a former Broward Sheriff’s Office (BSO) Department of Detention lieutenant was charged with two counts of wire fraud for allegedly fraudulently obtaining a total of $167,750 in forgivable Paycheck Protection Program (PPP) loans.
On April 1, 2021, Ernest Bernard Gonder Jr., 41, of Port St. Lucie, Florida, allegedly submitted a false and fraudulent PPP loan application misrepresenting EBG Properties LLC’s average monthly payroll and number of employees, according to the allegations in the information. In support of this application, Gonder also allegedly submitted multiple fraudulent IRS Forms 941. As a result of this false and fraudulent application, a New Jersey-based Small Business Administration (SBA)-approved PPP lender disbursed $106,540 to a bank account controlled by Gonder in the name of EBG Properties.
The information also alleges that on April 6, 2021, Gonder submitted a second false and fraudulent PPP loan application misrepresenting The Impact Center of Broward County Inc’s average monthly payroll and number of employees. In support of this application, Gonder also allegedly submitted multiple fraudulent IRS Forms 941. As a result of this false and fraudulent application, the New Jersey-based SBA-approved PPP lender disbursed $61,210 to a bank account controlled by Gonder in the name of The Impact Center of Broward County.
The information further alleges that Gonder used the proceeds of the scheme to enrich himself. Gonder also sought and received forgiveness of the two PPP loans he received, as alleged in the information.
On Jan. 30, Gonder made his initial appearance in federal court in Fort Lauderdale, Florida. If convicted, Gonder faces up to 20 years in prison on each count.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, Special Agent in Charge Brian Tucker of the Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-CFPB), and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO), made the announcement.
FBI Miami, FRB-CFPB Office of Inspector General and BSO investigated the case. Assistant U.S. Attorney Marc Anton is prosecuting it. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.
These charges stem from the Department of Justice’s ongoing initiative to prosecute fraud in connection with COVID-19 pandemic relief programs that offered assistance under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, including the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, as well as other crimes relating to the pandemic.
An information contains mere allegations and defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-60003.
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Foreign National Convicted of Advance Fee and Investment Fraud SchemeRead the Press Release
A federal jury in Washington, D.C., convicted a Kenyan national yesterday for perpetrating an advance fee and investment fraud scheme that defrauded numerous victims.
According to court documents and evidence presented at trial, Paul Maucha, 58, who resides in Washington, D.C., along with a co‑conspirator, engaged in a scheme through a shell company Maucha controlled, American Eagle Services Group Inc. (AESG), to make numerous misrepresentations to victims about AESG, its assets, and its access to money and capital.
In particular, Maucha — through AESG — promised victims who were seeking loans that AESG would provide them with these loans, so long as victims first provided AESG with an advanced fee while misrepresenting the purpose of that fee. AESG also told victims falsely that these advance fees could be refunded if AESG did not fund the loan. As proven at trial, however, Maucha and his co-conspirator knew that AESG did not have the capital to make these loans at the time the lending agreements were executed, and refunds to victims could not be assured because Maucha and his co-conspirator were splitting the fees between themselves and spending them, such that there was no money left to be refunded.
The jury convicted Maucha of one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of engaging in monetary transactions in criminally derived property. He is scheduled to be sentenced on May 16, and faces a maximum penalty of 20 years in prison for each of the conspiracy and wire fraud counts and 10 years in prison for each count of engaging in monetary transactions in criminally derived property. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, and Special Agent in Charge Keri Farley of the FBI Atlanta Field Office made the announcement.
The FBI investigated the case, with substantial assistance from Homeland Security Investigations.
Trial Attorneys Tian Huang and Tamara Livshiz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christine M. Macey for the District of Columbia are prosecuting the case. Assistant Chief William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Joshua S. Rothstein for the District of Columbia previously provided valuable assistance in the investigation.
Federal judge convicts Butler County man of narcotics crime punishable by 10 years to life in prisonRead the Press Release
CINCINNATI – A federal judge has convicted a Fairfield, Ohio, man of participating in a narcotics conspiracy that is punishable by at least 10 years and up to life in prison.
The verdict against Eric Jason Clark, 41, was announced yesterday afternoon following a bench trial on Jan. 29 before Senior U.S. District Judge Michael R. Barrett.
According to court documents and trial testimony, Clark and others conspired to possess with the intent to distribute five or more kilograms of cocaine and 400 or more grams of fentanyl.
In May 2021, DEA agents began investigating Clark after receiving information that he was interested in purchasing 10 kilograms of cocaine from Los Angeles for $33,000 per kilogram.
During conversations related to drug sales in June and July 2021, Clark said he wanted to “stick to that white girl, the Christina Aguilera,” meaning cocaine, because law enforcement “want to fight that war on drugs with people passing away from [fentanyl].” But if the “price was right,” Clark said he’d buy fentanyl too, so long as it was “top notch.”
Clark carried multiple cell phones at a time and said he disposed of his phones and numbers as quickly as every two days. He said he always kept $300,000 cash in his car.
Subsequent investigation revealed that Clark was engaging in large-scale narcotics purchases in the Cincinnati area.
Clark was ultimately arrested in August 2021. At the time of his arrest, officers discovered five kilograms of cocaine and more than $200,000 of cash in his vehicle, as well as five more kilograms of cocaine and more than three kilograms of fentanyl at his luxury stash house apartment.
At the time, Clark was on supervised release following a prior federal drug conviction. In 2008, he was sentenced in a case in the Southern District of Ohio to 180 months in prison.
Clark will be sentenced by the Court at a future hearing. Congress sets the minimum and maximum statutory sentence and sentencing of the defendant will be determined based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA); and Cincinnati Police Chief Teresa A. Theetge announced the verdict. Criminal Chief Christy L. Muncy and Assistant United States Attorney David P. Dornette are representing the United States in this case.
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Federal Prisoner Captured After Escaping from Halfway HouseRead the Press Release
CONCORD – A former New York man has been arrested and charged after escaping from the Hampshire House Residential Reentry Center in Manchester, U.S. Attorney Jane E. Young announces.
Michael Villanueva, 43, was charged with escaping from federal custody. Villanueva was arrested yesterday in the Manchester area and will make an initial appearance in federal court today at 11:30 a.m.
According to the charging documents, Villanueva was previously sentenced to 10 years of imprisonment for conspiracy to distribute controlled substances, namely heroin and cocaine base. In June 2023, he was transferred by the Bureau of Prisons from the federal facility in Allenwood, Pennsylvania to Hampshire House. At Hampshire House, he was allowed house arrest and wore an electronic GPS monitoring ankle bracelet.
On January 10, 2024, Villanueva was told to report to Hampshire House after authorities found inappropriate messages in his phone. That evening, at 6:41 pm, the Bureau of Prisons received an alert that Villanueva’s GPS monitoring ankle bracelet had been tampered with. Villanueva did not return to Hampshire House. He was at large for three weeks before being captured.
The charge of escape provides for a sentence of up to 5 years in prison. 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.
U.S. Marshals Service led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Federal Jury Finds White Earth Man Guilty of Production of Child Pornography on the Red Lake ReservationRead the Press Release
FERGUS FALLS, Minn. – A federal jury found a White Earth man guilty of production of child pornography, announced U.S. Attorney Andrew M. Luger.
According to the evidence presented at trial, in December 2020, Ryan Edward Thompson, 34, a.k.a. “Ryan Edward Wayne Townsend,” knowingly used a minor in sexually explicit activity to produce pornography images.
Using her school-issued laptop to message the National Suicide Prevention Lifeline, the 13-year-old victim disclosed that the defendant, whom she had recently moved in with, began sleeping in her room at night and sexually abusing her. Law enforcement responded and later discovered photographs of a sexual nature had been taken with the victim’s own cell phone.
Following a three-day trial before Judge John R. Tunheim in U.S. District Court, Thompson was found guilty yesterday on two counts of production and attempted production of child pornography. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the FBI, the Minnesota Bureau of Criminal Apprehension, and the Red Lake Department of Public Safety. The U.S. Attorney’s Office would also like to acknowledge the assistance of the White Earth Nation Indian Child Welfare Services, the Red Lake Nation Victim Services, Fosston Public Schools, Minneapolis Public Schools, and the Family Advocacy Center of Northern Minnesota.
The 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. Attorney’s Offices and the 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.justice.gov/psc.
If you need suicide or mental health crisis support, or are worried about someone else, please call or text 988 or visit the 988 Suicide & Crisis Lifeline chat to connect with a trained crisis specialist.
Assistant U.S. Attorneys Mary S. Riverso and Laura M. Provinzino tried this case.
District Man Sentenced to Eight Years in Prison for Brutal Stabbing of Defenseless D.C. Resident in Southeast WashingtonRead the Press Release
WASHINGTON – Joshua Dorsey, 29, a D.C. resident, was sentenced today in the Superior Court of the District of Columbia to 96 months of incarceration, announced U.S. Attorney Matthew M. Graves for the District of Columbia, and Chief of the Metropolitan Police Department Pamela A. Smith.
Dorsey was convicted of one count of aggravated assault while armed following his guilty plea on November 17, 2023, before the Honorable Anthony J. Epstein.
According to the government’s evidence, on September 26, 2023, the defendant approached the victim near the intersection of MLK Jr. Avenue Southeast and Good Hope Road Southeast and immediately began striking the victim with his fists. The defendant then took out a knife and began stabbing the victim eight to nine times in the chest and back, causing the victim to suffer from a collapsed lung. The defendant also stabbed the victim in the right eye. It is unclear whether the victim will ever be able to see again. Following the completion of his term of incarceration, the defendant will serve five years of supervised release.
On March 1, 2024, the defendant will be sentenced in a separate case in Superior Court following his convictions of second-degree cruelty and attempted strangulation.
In announcing the sentence, U.S. Attorney Graves and Chief Smith acknowledged the work of those who investigated the case from the Metropolitan Police Department. In addition, they commended the work of Assistant United States Attorney Omeed A. Assefi, who investigated and prosecuted the case.
District Man Sentenced to 15 Years in Prison for Two CarjackingsRead the Press Release
WASHINGTON – Antwon Haynie, 26, of Washington, D.C., has been sentenced to 15 years of incarceration after pleading guilty to crimes related to two armed carjackings committed in 2023, announced U.S. Attorney Matthew M. Graves and Pamela A. Smith, Chief of the Metropolitan Police Department (MPD).
On July 26, 2023, Haynie approached a parked vehicle at a gas station and began to enter the driver’s side. When he noticed a passenger seated in the backseat of the car, Haynie pointed a firearm at him and ordered him to exit. The passenger complied and when the vehicle’s owner attempted to stop Haynie, Haynie fought him off, got in the car, and drove away. Haynie was not immediately identified as the suspect following the incident.
Approximately two weeks later, on August 10, 2023, Haynie, while working with an accomplice, committed another armed carjacking. A family of four were seated in their vehicle eating ice cream, when Haynie approached and opened the driver’s side door while brandishing a firearm. Haynie ordered the driver to exit the vehicle while his accomplice opened the passenger side door, pointed a firearm at the passenger, and ordered the passenger to exit the vehicle. The two remaining family members also exited.
MPD officers quickly responded to the scene and mobilized a helicopter to locate the car, which they successfully tracked until they observed Haynie and his accomplice flee from the vehicle. More officers responded to the flight location, and they were able to successfully apprehend both men. Following the August arrest, MPD’s continued investigation confirmed that Haynie had committed the July 26, 2023, carjacking as well.
During the sentencing for Haynie, the Honorable Lynn Leibovitz commented on his complete disregard for the victims and the lasting impact his conduct had on their lives. She then sentenced Haynie to eight years in prison for the August 10, 2023, carjacking, and seven years in prison for crimes related to the July 26, 2023, carjacking. The sentences are to run consecutively for a total of 15 years of incarceration.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the work of Assistant U.S. Attorney Jacqueline Yarbro, who prosecuted the case.
District Man Pleads Guilty to Felon in Possession ChargeRead the Press Release
WASHINGTON -- Kenneth Hart, 25, of Washington, D.C., pleaded guilty on January 30, 2024, to one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year, announced U.S. Attorney Matthew M. Graves, Chief Pamela Smith of the Metropolitan Police Department (MPD), and Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Hart entered the guilty plea in the U.S. District Court for the District of Columbia. U.S. District Court Judge Trevor McFadden scheduled a sentencing hearing for May 17, 2024. The defendant has been detained since November 1, 2023.
According to the government’s evidence, on November 1, 2023, at approximately 5:30 p.m. law enforcement were at the intersection of Martin Luther King, Jr. Ave. and Mellon Street, Southeast, Washington, D.C. The defendant, Kenneth Hart was inside a restaurant, exited and started walking towards Malcolm X Ave., Southeast. Law enforcement followed behind and the defendant then turned a corner and entered into a liquor store. Law enforcement entered the store saw the defendant at the rear in front of a refrigerator with the door open. The defendant’s hand were inside the refrigerator as he was placing a firearm on the left side of the refrigerator. The defendant was placed under arrest and officers recovered a Springfield Armory XDS-9 firearm that was loaded with 9 millimeter ammunition. There was one round in the chamber and there were six bullets in the magazine.
The case was investigated by the MPD and ATF as part of Project Safe Neighborhood. It is being prosecuted by Assistant United States Attorney Shehzad Akhtar.
District Man Gets 26 Years for Shooting of a Pregnant Woman inside ApartmentRead the Press Release
WASHINGTON – Joshua Hemphill, 32, of Washington, D.C., was sentenced to 26 years in prison today for two counts of assault with intent to kill while armed, and other charges, in an early morning shooting that took place in Southeast Washington on September 21, 2018, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
A jury found Hemphill guilty on June 7, 2023.
According to the government’s evidence, on September 21, 2018, Hemphill went to the home where his former romantic partner was staying with her friend. In a fit of rage, he fired one round into the door and made his way inside the apartment. He then chased the two women into a small closet where he fired two rounds from approximately three feet away. The first round hit the friend in the left hand and the second hit her in the back of her head. The friend was 24 weeks pregnant at the time she was shot. The victim received emergency neurosurgery at MedStar Washington Hospital Center and both she and her child survived.
In announcing the sentencing, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the U.S. Marshals Service. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorneys Jennifer Loeb and Angela Buckner, current Assistant U.S. Attorneys Bonnie Thompson, Dana Joseph, Ryan Sellinger, and Jodi Lazarus, Appellate Assistant U.S. Attorneys Nick Coleman and Bryan Han, Paralegal Specialists Tiffany Fogle, Garcia Clarke, Lynda Randolph, and Tijuana McPhail, Supervisory Paralegal Specialists Linda McDonald and RaeShawn Johnson, Supervisory Victim Services Advocate Roderick Johnson, Victim/Witness Advocates Lu Lan and Rogers Dickerson, Witness Security Specialists Orlando Teel and Lesley Slade, and Victim/Witness Service Coordinator Maenylie Watson.
Finally, they commended the work of Assistant U.S. Attorneys LaVater Massie-Banks and Brian Yang, from the Domestic Violence Unit who investigated and prosecuted the case.
Demetrio Trujillo, Co-Defendant of Solomon Peña, Pleads GuiltyRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Demetrio Trujillo pled guilty to conspiracy, two counts of interference with federally protected activities, using and carrying a firearm during and in relation to a crime of violence, and discharging said firearm. Trujillo, 42, will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury indicted Trujillo on May 24, 2023, along with his son, Jose Louise Trujillo, and Solomon Peña. According to court records, Trujillo met Peña through acquaintances and knew that Peña campaigned to become the District 14 representative in the New Mexico House of Representatives in 2022. Following his electoral defeat in November 2022, Peña claimed to Trujillo and others that the election had been rigged against him. Peña decided to pressure members of the Bernalillo County Board of Commissioners to refuse to certify the results of the election and offered to pay Trujillo to help him.
On November 21, 2022, the Bernalillo County Board of Commissioners voted to certify the results of the election that Peña lost. At that time, Peña and Trujillo decided to move forward with Peña’s plan to intimidate his political targets. On Dec. 4, 2022, Peña paid Trujillo to shoot a firearm at the private residence of a former candidate for elective office that Peña had chosen as a target for intimidation. On Dec. 8, 2022, Peña paid Trujillo to shoot a firearm at the private residence of another former candidate for elective office to intimidate the target from campaigning as a candidate. On Jan. 3, 2023, Peña and Trujillo drove to the residence of a third individual who Peña had targeted because they were a former candidate for elective office and carried out a shooting to intimate the target from campaigning.
At sentencing, Trujillo faces up to life in prison followed by 5 years of supervised release and may be ordered to pay fines not to exceed $1 million.
Solomon Peña is currently scheduled to stand trial in June 2024.
Jose Louise Trujillo pled guilty to conspiracy, interference with federally protected activities, using and carrying a firearm during and in relation to a crime of violence, discharging said firearm, and possession with intent to distribute fentanyl on Jan. 8, 2024. Jose Louise Trujilo remains in custody pending sentencing, which is current scheduled for April 8, 2024. At sentencing, Jose Louise Trujillo faces up to life in prison.
The FBI Albuquerque Field Office investigated this case with the Albuquerque Police Department and the Bernalillo County Sheriff’s Office. Trial Attorney Ryan Crosswell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Jeremy Peña and Patrick E. Cordova for the District of New Mexico are prosecuting the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the task force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI field offices and U.S. Attorneys’ Offices throughout the country. A year after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
Under the leadership of Deputy Attorney General Monaco, the task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI Field Office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
The United States Attorney’s Office is committed to safeguarding free, fair, and secure elections. In partnership with our local, state, and federal partners, we will use every authority to ensure that all eligible voters can cast a vote, that all lawful votes are counted, and that every election official is safe and free to carry out their official duties.
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Davenport Man Sentenced to 210 Months in Federal Prison for Child Pornography ChargeRead the Press Release
DAVENPORT, Iowa – A Davenport man was sentenced today, Thursday, February 1, 2024, to 210 months in federal prison for distribution and receipt of child pornography.
According to public court documents at the time of his plea, Benji Clark Engesser, Jr., 23, was identified by law enforcement when a parent reported that they found their minor child exchanging sexual pictures with an adult. The phone number associated with the adult was traced to Engesser. During the execution of a search warrant of Engesser, Engesser’s phone was seized. Law enforcement forensically evaluated Engesser’s phone and uncovered images and videos of child sexual abuse material, that had both been received and distributed from Engesser’s phone.
After completing his term of imprisonment, Engesser will be required to serve ten years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. / For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.
Conehatta Man Sentenced to 20 Years in Federal Prison for Sexual Contact with a ChildRead the Press Release
Jackson, Miss. –A Conehatta man was sentenced to 240 months in federal prison for having sexual contact with a child in the Conehatta Community of the Mississippi Band of Choctaw Indians.
According to court documents, Dayleon Phillips, Sr., 35, admitted to having sexual contact with a child less than 12 years of age while in the Conehatta Community of the Mississippi Band of Choctaw Indians.
U.S. Attorney Todd Gee and Acting Special Agent in Charge Rebekah Day of the Federal Bureau of Investigation made the announcement.
The Choctaw Police Department and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Kevin J. Payne and Special Assistant U.S. Attorney Brian K. Burns prosecuted the case.
Colorado Springs Man Sentenced to 27 Months in Federal Prison for Possessing 11 Firearms as a Prohibited PersonRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Chad Edward Keith, age 42, was sentenced to 27 months in federal prison for possessing firearms after previously being convicted of a felony.
According to court documents, Keith maintained properties in both Colorado Springs and Cotopaxi, Colorado. At his properties, Keith possessed 11 firearms, including rifles and a shotgun. He previously had been convicted of a felony explosives offense, which is a crime punishable by imprisonment for a term exceeding one year. During the execution of search warrants related to this case, federal agents observed various paraphernalia and propaganda related to white supremacy and Nazism. In the defendant’s Colorado Springs residence, agents found a flyer with pictures of various Congressmen and Senators with images of the Star of David on their foreheads. The placement of the Stars of David were suggestive of firearms bullseye targets.
“Coloradans can rest easier knowing that a dangerous person is behind bars,” said United States Attorney Cole Finegan. “Together with our law enforcement partners, we remain committed to making sure that violent felons are prohibited from possessing weapons.”
“The FBI is committed to keeping communities safe. This commitment includes ensuring that individuals who are prohibited from owning firearms do not acquire them. In this case, a convicted felon was found to be in possession of 11 firearms,” said FBI Denver Special Agent in Charge Mark Michalek. “Addressing community safety concerns is a priority for the FBI, and we will continue to work with our partners to remove illegal weapons from the hands of offenders.”
United States District Court Judge Regina M. Rodriguez presided over the sentencing on January 30, 2024. After Keith’s term of incarceration, he will serve 36 months on supervised release. He was also ordered to forfeit all 11 firearms and ammunition.
The FBI conducted the investigation in this matter. Assistant United States Attorney Julia Martinez handled the prosecution. Assistant United States Attorney Kurt Bohn handled the forfeiture.
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.
Case No. 23-cr-00273-RMR
Colombian National Sentenced to over 17 Years for Recruiting Mariners to Traffic More Than 12,000 Kilograms of Cocaine to the Sinaloa CartelRead the Press Release
Tampa, FL – U.S. District Judge Richard A. Lazzara has sentenced Alonso Pineda-Torres (52, Colombia), a/k/a “Galladita,” to 17 years and 6 months in federal prison for conspiring to distribute cocaine on board vessels subject to the jurisdiction of the United States. Pineda-Torres entered a guilty plea on October 11, 2019, after his arrest and extradition from Colombia.
According to court records, Pineda-Torres was a member of a transnational criminal organization that dispatched self-propelled semi-submersible (SPSS) vessels from Colombia into the Pacific Ocean, destined for Sinaloa Cartel members in Oaxaca, Mexico. Pineda-Torres recruited SPSS crew members for these trips, delivered money to them, and assisted in the departure of an SPSS. Two of these SPSS vessels were interdicted in international waters, resulting in the seizure of over 12,000 kilograms of cocaine and the prosecution of the crewmembers in the Middle District of Florida.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations (HSI), the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. 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 Pineda-Torres. The case was prosecuted by Assistant United States Attorney Dan Baeza.
Chicago Man Sentenced to Nearly 24 Years in Prison for Sex Trafficking ChildrenRead the Press Release
CHICAGO — A Chicago man has been sentenced to nearly 24 years in federal prison for recruiting two children to travel to Chicago from Indiana to engage in sex acts for money.
A jury in 2022 convicted KENNEDY SPENCER, 55, of Chicago, on sex trafficking and conspiracy charges. U.S. District Judge John Robert Blakey imposed the sentence on Jan. 25, 2024, during a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance in the investigation was provided by the Tinley Park, Ill. Police Department and the FBI Resident Agency in South Bend, Ind. The government was represented by Assistant U.S. Attorneys Andrew C. Erskine and Erika L. Csicsila.
According to evidence presented at trial, the victims were under the age of 18 when Spencer induced them to travel to Chicago in the spring of 2018. Once in the city, Spencer on multiple occasions arranged for the victims to meet with individuals to engage in commercial sex acts. A co-conspirator – RONALD WILLIAMS, 65, of Lynwood, Ill. – drove the victims to some of the meetings. Afterward, Spencer and Williams kept the bulk of the proceeds.
Both victims testified at trial about having been sex trafficked by Spencer and Williams.
Williams was also convicted on trafficking and conspiracy charges. He was sentenced in 2023 to 15 years in federal prison.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by calling 1-800-843-5678 or logging on to www.cybertipline.com.
Burlington Man Sentenced to 96 Months in Federal Prison for Firearms ChargesRead the Press Release
DAVENPORT, Iowa – A Burlington man was sentenced on January 24, 2024, to 96 months in federal prison for possessing a firearm as a felon.
According to public court documents and evidence presented at sentencing, Brandon Allen Haynes, 32, was arrested for possessing a loaded pistol and loaded magazines as a felon, after a standoff with law enforcement, in Des Moines County, on December 15, 2022. Haynes had previously been convicted in state court of two felony charges, which bars him from possessing a firearm.
After completing his term of imprisonment, Haynes will be required to serve three years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Des Moines County Sheriff’s Office, the Burlington Police Department, and the West Burlington Police Department.
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 make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
Braddock Man Pleads Guilty to Possession of Machine GunRead the Press Release
PITTSBURGH, Pa. - A resident of Braddock, Pennsylvania, pleaded guilty in federal court to one count of being in possession of a machine gun, United States Attorney Eric G. Olshan announced today.
Luther Antwon Harper Jr., 19, pleaded guilty before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the Court was advised that, on April 5, 2023, Harper unlawfully possessed a machine gun, which, in this instance, was an automatic conversion kit/switch affixed to the rear slide of a Glock 22, .40 caliber pistol, or a “Glock switch.” This conversion kit/switch made the firearm capable of firing in a fully automatic capacity.
Judge Fischer scheduled sentencing for May 6, 2024. The law provides for a maximum total sentence of up to 10 years in prison, a fine of $250,000, or both, and a term of supervised release of up to three years. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Court continued to detain Harper pending sentencing.
Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Allegheny County Police Department’s Violent Crimes and Firearms Unit conducted the investigation that led to the prosecution of Harper.
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.
Bloomington Man Pleads Guilty to Methamphetamine Distribution ConspiracyRead the Press Release
ST. PAUL, Minn. – A Bloomington man has pleaded guilty to his role in a methamphetamine distribution conspiracy, announced United States Attorney Andrew M. Luger.
According to court documents, Jesus Martinez Salazar, 32, and his co-defendant, Derrick Dammons, 45, of Minneapolis, agreed to sell 1.5 pounds of methamphetamine for $3,750 to an individual who, unbeknownst to them, was an undercover law enforcement officer. On January 10, 2023, Dammons retrieved the methamphetamine from Martinez Salazar before meeting with the undercover officer to make the transaction. Following the transaction, Dammons got into a vehicle with Martinez Salazar and divided up the cash from the sale.
Because Martinez Salazar has a prior drug conviction, he is subject to a 15-year mandatory minimum prison term.
Martinez Salazar pleaded guilty today in U.S. District Court before Judge Donovan W. Frank to one count of conspiracy to distribute methamphetamine. On December 7, 2023, Dammons pleaded guilty to one count of conspiracy to distribute methamphetamine. Sentencing hearings will be scheduled at a later time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Minneapolis Police Department, and the Eagan Police Department.
Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.
Beckley Man Sentenced for Federal Fraud CrimeRead the Press Release
BECKLEY, W.Va. – Timothy Gross, 39, of Beckley, was sentenced today to five years of probation and ordered to pay $65,275.44 in restitution for wire fraud. Gross admitted to making a fraudulent payment with an employer-issued credit card as part of a scheme to divert $65,275.44 in credit card charges to his personal bank account.
According to court documents and statements made in court, Gross was hired by Amerihost LLC in 2020 as a maintenance worker for Beckley Town Homes, a multi-unit apartment building in Beckley. Amerihost issued Gross a credit card for legitimate business purposes and not for personal use.
On April 5, 2020, Gross used his Amerihost-issued credit card to submit a $1,712 payment to “J and Sons Electrical and Plumbing.” Gross admitted that no work had been conducted to justify the payment, and that he created a fraudulent invoice that described the payment as being for eight circuit-breaker panel boxes. Gross further admitted that he opened an account for “J and Sons Electrical and Plumbing” on the Square payments platform to divert payments from the Amerihost-issued credit card for his personal use, and linked that Square account to his personal bank account.
On at least 38 separate occasions from at least January 1, 2020, until at least April 15, 2020, Gross used the Amerihost-issued credit card to send $65,275.44 in unauthorized, fraudulent payments to “J and Sons Electrical and Plumbing” for work that was not performed. Gross created false work invoices as part of his scheme.
“This defendant’s wrongdoing required purposeful planning, and he persisted all the while knowing that his actions were criminal,” said United States Attorney Will Thompson. “The defendant abused the trust and authority placed in him to enrich himself, and today’s sentence serves as a deterrent to such misconduct.”
Thompson made the announcement and commended the investigative work of the United States Department of Housing and Urban Development-Office of Inspector General (HUD-OIG), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), and the Beckley Police Department.
“The Department of Housing and Urban Development, Office of Inspector General is committed to working with the Department of Justice and all of our law enforcement partners to ensure that federal funds intended to help low-income families are not wasted or misapplied,” said Special Agent-in-Charge Shawn Rice. “Mr. Gross’s sentencing today demonstrates the Government’s commitment to protecting the integrity of HUD programs against fraud, waste, or abuse.”
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Ryan Blackwell and Andrew D. Isabell 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. 5:22-cr-191.
Apopka Man Sentenced to More Than Three Years in Prison in Connection with Gun Store BurglariesRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Jeremy Middleton (25, Apopka) to 3 years and 10 months in federal prison for possession of stolen firearms. The court also ordered Middleton to forfeit the 13 stolen firearms he had in his possession. Middleton entered a guilty plea on September 13, 2023.
According to court documents, on January 4, 2023, Middleton drove to a federally licensed gun store in Melbourne and breached the back door with what appeared to be a grinder and a hammer. Middleton entered the store and stole 13 firearms, carrying them out in a black trash bag.
Surveillance image of Middleton from the Melbourne gun store.
On January 6, 2023, Middleton attempted to breach the door of a gun store in Clearwater, but was disrupted by law enforcement and arrested. Two of the firearms stolen from the gun store in Melbourne were recovered in the vehicle Middleton was driving, and the 11 remaining stolen firearms were recovered from a trash bag in the yard at Middleton’s residence.
The trash bag from Middleton’s yard containing the stolen firearms from Melbourne.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Osceola County Sheriff’s Office, the Melbourne Police Department, the Pinellas County Sheriff’s Office, and the Apopka Police Department. It was prosecuted by Assistant United States Attorney Diane Hu.
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.
1 February 2024
‘King’ of Violent Haitian Gang Pleads Guilty to Gun Smuggling and Money Laundering After Government’s CaseRead the Press Release
Joly Germine, 31, of Croix-des-Bouquets, Haiti, the self-described “King” of a notoriously violent Haitian gang known as 400 Mawozo, pleaded guilty yesterday to his role in a gunrunning conspiracy that smuggled firearms to Haiti in violation of U.S. export laws, and the laundering of ransoms paid for U.S. hostages to the gang in 2021.
The conspiracy resulted in the purchase in the United States of at least 24 firearms, including AK-47s, AR-15s, an M4 Carbine rifle, an M1A rifle, and a .50 caliber rifle, described by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as a military weapon, which were smuggled from the United States to the gang in Haiti for their criminal activities. Co-defendant Eliande Tunis, 45, of Pompano Beach, Florida, pleaded guilty on Jan. 17 to the same offenses.
“Mr. Germine, a leader of a notorious Haitian gang, admitted to an illegal gun-running scheme to arm fellow gang members with U.S. firearms in support of the group’s violent crime spree across Haiti, including the alleged 2021 kidnapping of 16 U.S. citizens,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will aggressively pursue every tool at its disposal to hold accountable those who would smuggle U.S.-origin weapons and other controlled goods for the benefit of malicious actors and their criminal enterprises.”
“Violent gangs have ravaged Haiti, and all too often, Americans in Haiti have been targets of their violence,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “These two defendants not only helped lead a prominent violent gang in Haiti, but they were also intimately involved in arming the gang and laundering ransom proceeds the gang obtained from kidnapping Americans. Preventing them from illegally shipping anymore firearms or laundering the proceeds of kidnappings strikes a critical blow against the gang they once led.”
“Violent, well-armed gangs pose an ongoing threat to U.S. Citizens who live in or travel to Haiti,” said Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office. “As Joly Germine and Eliande Tunis have just learned, the FBI is dedicated to disrupting and dismantling gangs who undertake hostage-taking of U.S. Citizens anywhere. This includes taking away their ability to wreak violence on the innocent using smuggled firearms.”
The plea came at the end of the government’s case during trial, after the testimony of 24 witnesses and two weeks of evidence. Germine, a Haitian national, pleaded guilty in the U.S. District Court for the District of Columbia before Judge John D. Bates to the 48-count second superseding indictment. The indictment charged Germine with conspiring to violate U.S. export control laws and to defraud the United States, violating export control laws, smuggling, and laundering the proceeds of ransoms paid to free U.S. hostages taken by the gang and laundering money to promote his crimes. He faces up to life in prison when he is sentenced on May 15.
Germine’s co-defendant and former girlfriend, Tunis, who styled herself as his “wife” and was described at trial as the “Queen”, pleaded guilty on the eve of trial on Jan. 17, to the same 48-count indictment. She also faces up to life in prison when she is sentenced on May 8. Another co-defendant, Jocelyn Dor, 31, who acted as a straw gun purchaser for Germine and Tunis, previously pleaded guilty on Oct. 30, 2023, and will be sentenced on Feb. 28.
According to evidence presented at trial, from at least March through November 2021, Germine, Tunis, and two co-defendants conspired with each other and with other gang members in Haiti to acquire and supply firearms to the 400 Mawozo gang in Haiti. Germine directed the gang’s operations from a Haitian prison using unmonitored cell phones, including directing gang members in Haiti to transfer money to Tunis and others in the United States for the purpose of obtaining firearms for the gang. Germine then provided Tunis and the two other U.S.-based co-defendants, all Florida residents, specifications for firearms and ammunition that Germine and other gang leaders wanted sent to Haiti. Tunis and the two co-defendants then purchased at least 24 rifles, handguns, and a shotgun at Florida gun shops while falsely stating that they were the “actual buyers” of the firearms, when they were in fact acting as straw purchasers for Germine. In approximately May 2021, Tunis smuggled firearms and ammunition to Haiti in containers disguised as food and household goods. In October 2021, Tunis shipped additional firearms and ammunition to Haiti, again by smuggling the firearms, but those firearms were seized by the FBI before they left the United States.
400 Mawozo is a violent Haitian gang that operated in the Croix-des-Bouquets area to the east of the capital, Port-au-Prince. From at least Jan. 12, 2020, 400 Mawozo was engaged in armed hostage takings of U.S. citizens in Haiti for ransom. The victims have generally been forced from their vehicles at gunpoint and kept in various locations by armed gang members while their relatives and colleagues negotiate payment for their release. At trial, the government presented evidence that the gang received ransom payments from the hostage taking of three U.S. citizens in the summer of 2021, who testified at trial, and the cash ransom proceeds were commingled with the gang’s funds and transferred via MoneyGram and Western Union from the United States to Haiti to buy more firearms.
In the fall of 2021, the 400 Mawozo gang claimed responsibility for taking 16 U.S. citizens hostage, including five children, and one Canadian citizen who were part of a missionary organization visiting an orphanage in Port-au-Prince. The gang demanded a ransom of $l million for each hostage. The hostages were all released or had escaped by on or about Dec. 16, 2021. This case does not address those hostage taking charges, for which Germine has been separately indicted in case number 22-cr-161 (DDC).
The FBI Miami Field Office investigated the case, with assistance from the ATF and the Department of Commerce’s Office of Export Enforcement. Valuable assistance was provided by the government of Haiti, particularly the Haitian National Police, the Justice Department’s Office of International Affairs, the Diplomatic Security Service of the U.S. Department of State, and the U.S. Attorney’s Office for the Southern District of Florida’s Special Prosecutions Section.
Assistant U.S. Attorneys Karen P. Seifert and Kimberly Paschall and Paralegal Specialist Jorge Casillas for the District of Columbia and Trial Attorney Beau Barnes of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
York County Woman Sentenced to 14 Years in Prison for Trafficking MethamphetamineRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kim Forney, age 50, of York County, Pennsylvania, was sentenced on January 30, 2024, by U.S. District Court Judge Jennifer P. Wilson to 168 months in prison for trafficking methamphetamine with a gun.
According to United States Attorney Gerard M. Karam, Forney was indicted for her role in a methamphetamine trafficking ring operated out of her home in Windsor, Pennsylvania. Police seized methamphetamine, weapons, thousands in cash and other materials related to the drug trafficking operation during a July 22, 2020, search of her home. Forney was charged with conspiracy to traffic methamphetamine with Cody Mitzel, Christa Tabor, Craig Smith, and Sheridan Lee Boothe. Forney previously entered guilty pleas to trafficking 500 grams and more of methamphetamine, and to possessing a gun recovered from her home.
Cody Mitzel entered a guilty plea to methamphetamine trafficking and was previously sentenced by Judge Wilson to approximately 36 months in prison. Craig Smith pled guilty to methamphetamine trafficking and is scheduled to be sentenced on April 26, 2024. Sheridan Lee Boothe pled guilty to methamphetamine trafficking and is scheduled to be sentenced on May 21, 2024. Christa Tabor is wanted.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Windsor Mill Woman Pleads Guilty to Conspiring to Obtain More Than $3.5 Million in COVID-19 CARES Act LoansRead the Press Release
Baltimore, Maryland –Tomeka Glenn, a/k/a “Tomeka Harris” and “Tomeka Davis,” age 47, of Windsor Mill, Maryland, pleaded guilty today to conspiracy to commit wire fraud, relating to the submission of millions of dollars in fraudulent COVID-19 CARES Act Paycheck Protection Program and Economic Injury Disaster Loan applications.
Glenn’s co-defendant, Kevin Davis, age 43, also of Windsor Mill, Maryland, pleaded guilty on January 25, 2024, to being a felon in possession of a firearm and ammunition.
The guilty pleas were announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation (“FBI”), Baltimore Field Office; Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector Genera (“SBA-OIG”), Eastern Region; and Chief Robert McCullough of the Baltimore County Police Department.
Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, administered through the Small Business Administration (“SBA”). The SBA also offered an Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations. An EIDL advance did not have to be repaid, and small businesses could receive an advance, even if they were not approved for an EIDL loan. The maximum advance amount was $10,000.
According to Glenn’s plea agreement, beginning in June 2020 and continuing through March 2021, Glenn and various co-conspirators prepared numerous false and fraudulent EIDL and PPP loan applications for various businesses (including some that did not exist in any legitimate capacity) and that included false information concerning, among other things, number of employees, monthly payroll costs, and revenue. The PPP applications also routinely included false and fraudulent Internal Revenue Service (“IRS”) tax forms and bank statements, which were submitted by Glenn to substantiate the false representations made in the applications.
Glenn admitted that she received kickback payments from the loan borrowers in exchange for her assistance in connection with the submission of fraudulent PPP and EIDL applications, ultimately receiving more than $400,000 in kickbacks in connection with the scheme. These kickbacks typically amounted to 10% to 20% of the loan amount.
In total, the kickback scheme resulted in the disbursement of at least $2,715,649.12 in fraudulently obtained PPP and EIDL funds in connection with 23 fraudulent PPP loans and EIDLs.
According to Glenn’s plea agreement, Glenn and her then-fiancé Davis, received $300,726.50 in PPP/EIDL funds for various entities that they controlled, and Glenn attempted to obtain $601,511.20 in additional fraudulent PPP and EIDL funds too.
Glenn used the fraudulently obtained funds to pay for a luxury vacation at a resort in Jamaica, to purchase a 2021 Mercedes-Benz S580 sedan valued at $148,171.60, to buy thousands of dollars in luxury jewelry, as well as numerous other luxury goods, including items from Luis Vuitton, Neiman Marcus, Dior, Cartier, Gucci, Chanel, and Hermes.
At the time of her scheme, neither Glenn, nor Davis had any legitimate source of income, and in May 2020, each applied for unemployment insurance benefits in the State of Maryland.
As detailed in Davis and Glenn’s plea agreement, on January 6, 2023, law enforcement executed a federal search warrant at their residence. Davis and Glenn were present at the residence at the time of the search and were arrested in connection with the fraudulent COVID-19 CARES Act loans.
According to Davis’s plea agreement, during the execution of the search warrant, law enforcement found and seized four firearms loaded with ammunition—a 9mm firearm, and three .40 caliber firearms. Later investigation revealed that the one of the .40 caliber firearms had earlier been reported stolen by its owner.
As detailed in the plea, the firearms were hidden by Davis in the air ducts of the residence: two firearms were hidden in the main bedroom air duct where Davis slept and kept his personal effects; the other two firearms were in the air duct of the bathroom closest to the main bedroom. Moreover, two of the firearms were further stuffed in socks in attempt to hide them. Davis admitted that he possessed and secreted the firearms in the air ducts of his home (and in the socks) in an attempt to conceal them from law enforcement after learning that federal agents had a warrant to search his home. Davis’s concealment of the firearms constitutes attempted obstruction of the administration of justice with respect to the investigation. Each of the four firearms recovered from Davis’s home on January 6, 2023 were later found to have his DNA on them. A later review of Davis’s iCloud account revealed the existence of, among other things, a series of videos depicting Davis handling firearms, including a shotgun and an assault rifle. Davis knew that his previous felony conviction prohibited him from possessing firearms or ammunition.
As part of their plea agreements, Glenn and Davis will be required to forfeit their interest in any assets derived from or obtained by them as a result of, or used to facilitate the commission of, their illegal activities. Specifically, Glenn is required to forfeit a money judgment in the amount of at least $700,726.50; the 2021 Mercedes-Benz; cash in bank accounts she controlled that were held in the names of business entities; and jewelry, including her 3.03 carat yellow diamond engagement ring, a Diamond Miami Cuban Link Chain with 31.5 carats of VS1 diamonds, and Rolex, Cartier and Breitling watches. Davis must forfeit the firearms and ammunition.
Glenn faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and Davis faces a maximum of 15 years in federal prison. Actual sentences for federal crimes are typically less than the maximum penalties. U.S. District Judge Richard D. Bennett has scheduled Glenn’s sentencing for May 7, 2024, at 2:30 p.m. and scheduled sentencing for Davis on April 17, 2024, at 11:00 a.m.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
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.
United States Attorney Erek L. Barron commended the FBI, the SBA-OIG, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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United States Attorney's Office Releases 2023 Fourth Quarter Immigration Enforcement StatisticsRead the Press Release
PHOENIX, Ariz. – Today, the United States Attorney’s Office announced its immigration enforcement statistics for October 1, 2023, to December 31, 2023. These cases are prosecuted in partnership with the Tucson and Yuma Sectors of the Customs and Border Protection’s U.S. Border Patrol, along with Homeland Security Investigations, and assistance from other federal, state, and county agencies. In the three-month period ending December 31, 2023, the United States brought criminal charges in Arizona against 1,662 individuals who illegally entered or re-entered the United States. In its ongoing effort to deter unlawful immigration, the United States also filed 190 cases against individuals responsible for smuggling undocumented noncitizens to and within the District of Arizona. In this time period, the United States also prosecuted 77 reactive drug cases arising out of immigration ports of entry and checkpoints.
Reducing migrant smuggling and mitigating the risk to communities impacted by these offenses continues to be a priority for the Office and its law enforcement partners. Some of these prosecutions are directed against leaders and coordinators of alien smuggling organizations. Other prosecutions are aimed at deterring young adult drivers, often recruited over social media platforms, from engaging in this dangerous activity. Prosecutions against young drivers include cases brought against seven juvenile smugglers during this time period.
Protecting law enforcement officers is a key part of border vigilance. During this time period federal prosecutors brought charges against four defendants accused of assaulting federal officers.
These statistics represent United States Attorney’s Office prosecutions only. The numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
RELEASE NUMBER: 2024-012_2023 Fourth Quarter Immigration Enforcement Statistics
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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.Union Woman Sentenced to Federal Prison for Creating Child Sex Abuse MaterialsRead the Press Release
GREENVILLE, S.C. — Britney Sheppard Campbell, 36, of Union, was sentenced to 25 years in federal prison after pleading guilty to production of child sex abuse materials.
Evidence presented to the court showed that from January 2014 to 2016, at the request of her boyfriend, Campbell agreed to create child sex abuse materials. In the course of a babysitting job, Campbell performed sexual acts on an infant, filmed the acts, and provided the images to her boyfriend. She also agreed to perform and record sex acts with an Alzheimer’s patient for whom she provided care.
The Greenville County Sheriff’s Office executed a search warrant at the boyfriend’s home based on information that he was receiving and sending child sex abuse materials. With the seizure of his computer, law enforcement discovered the images of Campbell and the victim. Campbell admitted to the production of the materials. Her boyfriend died before the investigation was complete.
United States District Judge Timothy M. Cain sentenced Campbell to 300 months imprisonment, to be followed by a lifetime of court-ordered supervision. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the Greenville County Sheriff’s Office, the United States Secret Service, and the Department of Homeland Security. Assistant U.S. Attorney Bill Watkins is prosecuting the case.
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Union County Man Sentenced to Five Years in Prison for Operating Multimillion-Dollar Unlicensed Check Cashing SchemeRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man with businesses in Newark was sentenced today to 60 months in prison for operating an unlicensed check cashing business, U.S. Attorney Philip R. Sellinger announced.
Fernando Q. Martins, 44, of Union Township, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to one count of operating an unlicensed money transmitting business. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Martins previously admitted that from 2015 through June 19, 2019, he operated a business known as Community Check Cashing in Newark, despite holding no license, registration or permission from the U.S. Department of Treasury. He cashed checks for customers in New Jersey and New York, allowing them to cash checks written to shell companies to hide the identity of the customers receiving the cash. In his plea agreement, Martins stipulated that the loss amount was between $250 million and $550 million.
In addition to the prison term, Judge Wigenton sentenced Martins to three years of supervised release, fined him $50,000 fine, and ordered forfeiture of $765,185.
U.S. Attorney Sellinger credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney David E. Malagold of the Cybercrime Unit in Newark.
U.S. Attorney’s Office Collects More Than $2.2 Billion in Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that the Southern District of New York collected $2,249,716,748.68 in criminal and civil actions in Fiscal Year 2023. Of this amount, $550,594,893.86 was collected in criminal actions, $63,979,949.82 was collected in civil actions, and $1,632,141,905 was collected in asset forfeiture actions.
Additionally, the Southern District of New York worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,379,785.90 in cases pursued jointly by these offices. Of this amount, $81,164.56 was collected in criminal actions, and $2,298,261.34 was collected in civil actions.
U.S. Attorney Damian Williams said: “As advocates for the victims of criminal and civil wrongdoing, this Office has perennially been the nation’s leader in securing forfeiture, restitution, and other financial penalties – this year collecting over $2.2 billion. I could not be prouder of the career prosecutors of this Office who work tirelessly to hold bad actors accountable and return property to those who have been victimized.”
A highlight of the Office’s work this year includes the July 2023 sentencing of Allianz Global Investors U.S. (“AGI”). AGI was sentenced in connection with a multibillion-dollar fraud scheme involving a series of private investment funds managed by AGI after pleading guilty to securities fraud. AGI was sentenced to financial penalties comprised of over $463 million in forfeiture, over $2.32 billion in restitution, and over $2.33 billion in fines.
The U.S. Attorney’s Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state compensation and victim assistance programs. In addition, forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney Highlights Recent Prosecutions of True Threats and Hate Crimes Cases, Will Continue to Pursue These Cases in Federal CourtRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the results of the Middle District of Florida’s efforts to combat the disturbing spike in threats against public officials, religious institutions, and individuals in our community, as well as crimes motivated by hate-based ideologies. Over approximately the past year and half, federal prosecutors across the District have prosecuted more than 27 defendants for threats, stalking, harassment, interference with the exercise of civil rights, and other hate-based crimes. The defendants charged in these cases committed federal offenses on the internet, over the phone, in voicemails, on commercial aircraft, and in person. The attached chart details the threat and hate-crimes prosecutions that the U.S. Attorney’s Office has handled in the last year and a half.
The threats of violence, threatening conduct, and actions charged in the listed cases have caused serious harm to individual and organizational victims. Often these crimes create major disruptions in the continuity of operation of schools, retail establishments, medical facilities, houses of worship, and government offices. As the attached chart illustrates, federal judges have imposed substantial sentences on defendants charged with threat-related offenses in the Middle District of Florida. For example, the Court sentenced seven of these defendants to terms of imprisonment of more than a year. In some cases, the Court imposed sentences of five years’ imprisonment.
The Middle District of Florida’s pursuit of threat crimes is consistent with its overall strategy of reducing violent crime and sending the message to the community that threats of violence will also be taken seriously.
“If you threaten somebody with violence, law enforcement will take you at your word,” said U.S. Attorney Roger Handberg. “And if you commit a crime based on hate, we will aggressively investigate and prosecute those crimes, too. Law enforcement officers and federal prosecutors will act quickly to disrupt true threats and hate-based crimes by charging you in federal court.”
“Thanks to our strong law enforcement partnerships, we have the people, resources, and technology to identify and arrest those making violent or hate-based threats,” said FBI Tampa Division Special Agent in Charge David Walker. “While the FBI does not and will not police ideology, we take threats to life seriously, and so should anyone thinking about making one.”
“FDLE takes every threat seriously. We will work with our law enforcement partners and exhaust our investigative resources to apprehend anyone who dares to incite harm on Florida’s citizens,” says FDLE Fort Myers Special Agent in Charge Eli Lawson. “Safeguarding Florida’s faith-based communities is paramount.”
Many of the cases that have been prosecuted involved threats directed at victims based on their race, religion, color, national original, or sexual orientation.
Significant cases prosecuted in the past year include:
In Jacksonville in July 2023, Frederick Eugene Pierallini III (27, Jacksonville) pleaded guilty to two federal hate crimes related to intimidating two Black women and interfering with their enjoyment of federally protected activities because of their race and color. According to court documents, on September 10, 2022, Pierallini directed racial slurs at a store cashier. He then threatened the clerk by brandishing and cocking a shotgun. Two days later, Pierallini approached a woman on a public sidewalk, directed racial slurs at her, and threatened to kill her. Pierallini then left, returned with a shotgun, and fired a single shot. Pierallini is scheduled to be sentenced on April 24, 2024, and faces a maximum penalty of 10 years in prison and a fine up to $250,000 for each count. The FBI Jacksonville Field Office and the Jacksonville Sheriff’s Office investigated the case. Assistant U.S. Attorney Ashley Washington and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section are prosecuting the case.
In Orlando in January 2024, Jeziah Guagno (24, Boynton Beach) was sentenced to 37 months in federal prison for mailing threatening communications to a federal judge. According to court documents, in May 2021, a federal judge in the Middle District of Florida received a threatening letter from M.S.—an inmate at the Santa Rosa Correctional Institution. The letter included violent threats to murder the judge and his wife. When interviewed, M.S. denied making the threats. Guagno, however, was also serving time in the same Florida prison as M.S. Subsequent DNA and fingerprint analysis by the FBI determined that Guagno’s DNA was on the envelope and his palmprint was on the letter. Further investigation revealed that the federal judge who had been threatened in the letter had previously dismissed a civil case filed by Guagno. This case was investigated by the Federal Bureau of Investigation, the United States Marshals Service, and the Florida Department of Corrections. It was prosecuted by Assistant United States Attorneys Tyrie K. Boyer and Belkis H. Crockett.
In Tampa in January 2024, Alexander Lightner (26, Venice) was charged by indictment with interstate transmission of a threat to injure and unlawful possession of a silencer. According to court filings, on December 29, 2023, Lightner made several online posts indicating his intent to carry out a mass shooting. Federal law enforcement subsequently executed a search warrant at Lightner’s residence and located an unregistered firearm silencer, ammunition, and multiple firearms in his bedroom. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, with valuable assistance from the Florida Department of Law Enforcement, the Sarasota Police Department, and the Sarasota County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Lindsey Schmidt.
Threat cases prosecuted in the Middle District of Florida were investigated by the Anaheim Police Department, the Carbondale Police Department, the Citrus County Sheriff’s Office, the Department of Veterans Affairs – Office of Inspector General, the Federal Bureau of Investigation, the Florida Department of Corrections, the Florida Department of Law Enforcement, the Florida Highway Patrol, the Hialeah Police Department, the Hollywood Police Department, the Jacksonville Aviation Authority Police Department, the Jacksonville Sheriff’s Office, the Kansas City Police Department, the Miami Dade Police Department, the Pasco Sheriff’s Office, the Pinellas County Sheriff’s Office, the Pinellas Park Police Department, the St. Petersburg Police Department, the Sarasota County Sheriff’s Office, the Sarasota Police Department, the Citrus County Sheriff’s Office, the Supreme Court of the United States Police Department, the Tampa Police Department, the Temple Terrace Police Department, the Transportation Security Administration, the United States Capitol Police, the United States Marshals Service, the United States Postal Inspection Service, and other state and local partners.
These cases were prosecuted by Assistant United States Attorneys Risha Asokan, Tyrie Boyer, Erin Favorit, Carlton Gammons, William Hamilton, Stacie Harris, Abigail King, Kirwinn Mike, Brooke Padgett, Candace Rich, Lindsey Schmidt, Ilyssa Spergel, Karyna Valdes, Ashley Washington, and Kara Wick, and Special Assistant United States Attorney Joseph Wheeler.
For more information about other threat cases prosecuted by the Middle District of Florida, please visit www.justice.gov/usao-mdfl/pr.
In addition to bringing federal prosecutions arising from this conduct, the U.S. Attorney’s Office has engaged in community efforts aimed at deescalating hate speech and encouraging tolerance and understanding. The Office recently implemented the Department of Justice’s United Against Hate initiative, which seeks to teach the community how to identify, report, and help prevent hate crimes and to build trust between law enforcement and communities. To provide information about some of the federal resources and programs that are available for identifying, reporting, and preventing hate crimes, the U.S. Attorney’s Office has set up a dedicated webpage (www.justice.gov/usao-mdfl/unitedagainsthate).
Defendant
(Age, Residence)
Charge(s)
Maximum Terms of Imprisonment
Status
Sean Albert
(20, Winter Park)
Transmission of interstate threat to injure
Sentenced to time served (approximately 8.5 months) on September 14, 2023.
Christopher Au- Young
(36, California)
Interstate stalking (6 counts)
Sentenced to 60 months in federal prison and 3 years of supervised release on November 1, 2023.
Michael Basaman
(45, Temple Terrace)
Transmission of interstate threat to injure (2 counts)
Maximum penalty of 10 years in federal prison.
Charged by indictment, scheduled for trial on April 5, 2024.
Mario Bentley
(39, Jacksonville)
Interstate stalking (2 counts) and possession of a firearm by a convicted felon
Maximum penalty of 20 years in federal prison.
Charged by indictment on January 23, 2024.
Curtis Brown
(35, Indian River)
Threatening to kill a United States judge
Sentenced to 15 months in federal prison and 3 years of supervised release on June 27, 2023.
Michael Dambrosia
(61, Ocala)
Transmission of interstate threat to injure, making false statement in connection with the attempted purchase of a firearm
Maximum penalty of 15 years in federal prison.
Charged by indictment, scheduled for trial on March 4, 2024.
Caleb Hunter Freestone
(28, Miami)
Gabriella Oropesa
(25, Cooper City)
Anarella Rivera
(47, Hialeah)
Amber Smith-Stewart
(24, Okeechobee)
Conspiracy Against Rights and Freedom of Access to Clinic Entrances (2 counts)
Maximum penalty of 12 years in federal prison.
Charged by superseding indictment, scheduled for trial in March 2024.
Jeziah Guagno
(24, Boynton Beach)
Mailing a threat to injure
Sentenced to 37 months in federal prison and 3 years of supervised release on January 9, 2024.
David Hannon
(67, Sarasota)
Threatening to kill a United States congresswoman
Sentenced to 36 months of federal probation on July 6, 2022.
Robert Dewayne Lashley
(52, Citrus Springs)
Hate Crime Acts
Sentenced to 26 months in federal prison and 3 years of supervised release on January 25, 2023.
Roy Lamar Lashley
(56, Citrus Springs)
Hate Crime Acts
Sentenced to 60 months in federal prison and 3 years of supervised release on January 25, 2023.
Jordan Patrick Leahy
(29, Seminole)
Interference with federally protective activities based on race (2 counts)
Sentenced to 24 months in federal prison and 3 years of supervised release on November 7, 2022.
Alexander Lightner
(26, Sarasota)
Transmission of interstate threat to injure, possession of unregistered silencer
Maximum penalty of 15 years in federal prison.
Charged by indictment, scheduled for trial on March 4, 2024.
Deep Alpesh Kumar Patel
(21, Sarasota)
Transmission of interstate threat to injure
Maximum penalty of 5 years in federal prison.
Pleaded guilty, scheduled for sentencing on March 14, 2024.
Frederick Eugene Pierallini III (27, Jacksonville)
Interference with federally protective activities based on race (2 counts)
Maximum penalty of 20 years in federal prison.
Pleaded guilty, scheduled for sentencing in April 2024.
Justin Rancourt
(35, St. Petersburg)
Transmission of interstate threat to injure
Sentenced on July 11, 2023, to time served (approximately 10 months in federal prison) to be followed by 120 months of supervised release.
Neal Sidhwaney
(43, Fernandina Beach)
Transmission of interstate threat to injure
Maximum penalty of 5 years in federal prison.
Pleaded guilty, scheduled for sentencing on April 1, 2024.
Evan Sims
(41, Rhode Island)
False information and threats regarding the possession of an explosive on an airplane
Maximum penalty of 5 years in federal prison.
Charged by complaint on December 6, 2023.
Aaron Thompson
(43, Raiford)
Mailing a threat to injure
Sentenced to 41 months in federal prison on October 23, 2023.
Stephen Thorn
(65, Pensacola)
Transmission of interstate threat to injure, making telephone calls without disclosing identity to abuse, threaten, and harass
Maximum penalty of 7 years in federal prison
Charged by indictment, scheduled for trial in June 2024.
Robert Trout
(19, St. Petersburg)
Transmission of interstate threat to injure
Maximum penalty of 5 years in federal prison.
Charged by indictment, scheduled for trial on February 5, 2024.
*Sealed cases and certain other cases are not listed in this chart.
U.K. Citizen Sentenced to Prison for Attempting to Export U.S. Technology to IranRead the Press Release
WASHINGTON – Saber Fakih, 48, of the United Kingdom, was sentenced yesterday to 18 months in prison for violations of the International Emergency Economic Powers Act (IEEPA) and Iranian Transactions and Sanctions Regulations.
The announcement was issued by U.S. Attorney Matthew M. Graves; Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; Acting Special Agent in Charge Robert Dugan of the Department of Commerce’s Office of Export Enforcement; FBI Special Agent in Charge Thomas J. Sobocinski, of the Baltimore Field Office; and FBI Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division; and Homeland Security and Investigation’s Special Agent in Charge James R. Mancuso of HSI’s Baltimore Field Office.
In addition to the prison term, U.S. District Court Judge Dabney L. Friedrich ordered Saber Fakih to serve three years of supervised release.
According to his plea agreement, Saber Fakih conspired with Bader Fakih, 43, of Canada, Altaf Faquih, 72, of the United Arab Emirates, and Alireza Taghavi, 48, of Iran, to export and attempt to export an Industrial Microwave System (IMS) and counter-drone system from the United States to Iran, without first obtaining the requisite license from the Department of Treasury’s Office of Foreign Assets Control (OFAC).
Saber Fakih’s co-conspirators held themselves out as procurement agents of Rayan Roshd, which has since been sanctioned by the U.S. Government for its procurement activities related to the Iranian Revolutionary Guards Corps (IRGC).
Another co-conspirator, Iranian national Jalal Rohollahnejad, 46, has also been charged with smuggling, wire fraud and related offenses arising from the same scheme. Rohollahnejad previously was added to the Department of Commerce’s, Bureau of Industry and Security Entity List in March 2020, for acting contrary to U.S. national security or foreign policy interests by procuring goods on behalf of a Specially Designated National (SDN).
According to the government’s evidence, in 2017 and 2018, Fakih and his co-conspirators attempted to export to Iran items that had potential civil and military uses. Potential military uses of the industrial microwave system (IMS) (with some modification) include high-power microwave-based Directed-Energy Weapon systems. The counter-drone system, which has both commercial and military uses, can be used to stop, identify, redirect, land or take total control of a target unmanned aerial vehicle.
Saber Fakih admitted in his statement of offense that he was the primary liaison between the Iranian purchaser and the U.S.-based seller of the IMS. He placed a bid with the Massachusetts vendor, coordinated an inspection of the machine, and generally corresponded with the vendor on Taghavi’s behalf, knowing it was ultimately destined for Iran.
Rohollahnejad caused the equivalent of $450,000 to be sent from Iran to the UAE, where Altaf Faquih picked it up and converted it from Emirati currency to U.S. dollars. Faquih then transferred the money to Bader Fakih in Canada via three separate wire transfers. Bader Fakih then transferred the money to the U.S. company for the purchase of the IMS.
In addition to the IMS, Saber Fakih and Bader Fakih conspired to purchase two counter-drone systems worth nearly $1 million from a Maryland-based company on behalf of Taghavi.
Saber Fakih was arrested in the United Kingdom pursuant to a U.S. Extradition Request on or about February 10, 2021. On January 25, 2022, he entered a plea of guilty to count two of the indictment in U.S. District Court in the District of Columbia.
The case was investigated by the FBI’s Baltimore Field Office, HSI’s Baltimore Field Office, and the Washington Field Office of the U.S. Department of Commerce Office of Export Enforcement.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterespionage and Export Control Section.
Three New Orleans Men Plead Guilty to Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – JONATHAN GONZALEZ, age 25, MARK WILLIAMS, age 22, and DERRICK BRUMFIELD, age 23, residents of New Orleans, pleaded guilty on January 30, 2024, before U.S. District Judge Jay C. Zainey to charges in a 15-count second superseding indictment. GONZALEZ, WILLIAMS, and BRUMFIELD each pleaded guilty to conspiracy to distribute and possess with intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C)-(D), and 846. Both GONZALEZ and WILLIAMS pleaded guilty to possession with intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C)-(D), and to possession of a firearm in furtherance of drug trafficking, in violation of Title 18, United States Code, Section 924(c). GONZALEZ additionally pleaded guilty to conspiracy to possess firearms in furtherance of drug trafficking, in violation of Title 18, United States Code, Section 924(o), and to possessing a vehicle stolen from the Norfolk Southern Automotive Distribution Facility, in violation of Title 18, United States Code, Section 659.
According to court documents, on January 29, 2023, GONZALEZ was a passenger in an Infinity QX80 stolen from the Norfolk Southern Automotive Distribution Facility. When NOPD officers attempted to perform an investigative stop on the vehicle, GONZALEZ fled on foot but was quickly apprehended. He possessed a Glock Model 19 pistol, an extended magazine containing 29 rounds of ammunition, a large bag of marijuana, a digital scale, and plastic baggies. On May 17, 2023, the Federal Bureau of Investigation (FBI) searched GONZALEZ’s mother’s residence, in the presence of both GONZALEZ and WILLIAMS. Both men possessed loaded firearms, tapentadol pills and marijuana, with the intent to distribute those substances.
On May 19, 2023, FBI executed a search warrant at a Ninth Ward residence and seized cocaine and tapentadol, among other controlled substances. BRUMFIELD conspired with the occupants of the residence to distribute, and possess with intent to distribute, cocaine and tapentadol.
As to their convictions for conspiracy to distribute and possess with intent to distribute controlled substances, GONZALEZ, WILLIAMS, and BRUMFIELD each face up to 20 years in prison, up to a $1,000,000 fine, and at least three years of supervised release. WILLIAMS faces the same penalties for his conviction for possession with intent to distribute controlled substances. GONZALEZ faces up to 5 years imprisonment, up to a $250,000 fine, and a minimum of two years of supervised release for possession with intent to distribute controlled substances. As to their convictions for possessing a firearm in furtherance of drug trafficking, GONZALEZ and WILLIAMS each face a minimum of five years and up to life in prison, which must run consecutively to any other sentence, up to a $250,000 fine, and up to five years of supervised release. For his conviction for conspiracy to possess firearms in furtherance of drug trafficking, GONZALEZ faces up to 20 years in prison, up to a $250,000 fine, and up to three years of supervised release. Finally, for his conviction for possessing a vehicle stolen from the Norfolk Southern Automotive Distribution Facility, GONZALEZ faces up to 10 years in prison, up to a $250,000 fine, and up to three years of supervised release. As to each count of conviction, GONZALEZ, WILLIAMS, and BRUMFIELD must pay a mandatory $100 special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
Three New Jersey Men Indicted for a Violent Kidnapping and Extortion Attempt in Astoria, QueensRead the Press Release
Earlier today, in federal court in Brooklyn, a superseding indictment was unsealed charging Aasim Boone, Jarrett Bruce and Lesly Valentin with one count of kidnapping conspiracy and Valentin with one count of transmission of interstate communications with intent to extort. The charged crimes arise from the December 2022 abduction and attack on a victim from the Astoria neighborhood of Queens, New York. Valentin was previously arrested and charged in the underlying indictment with transmission of interstate communications with intent to extort and is currently in custody. Boone was arrested yesterday, and Bruce was arrested today. Both will be arraigned on the superseding indictment this afternoon before United States Magistrate Judge Robert M. Levy. Valentin was previously arrested and is being held in custody pending trial. Valentin will be arraigned on the superseding indictment at a later date.
Breon Peace, United States Attorney for the Eastern District of New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.
“As alleged, the crimes in this case are very disturbing. The defendants targeted an unsuspecting victim, abducted him outside of his home and subjected him to unimaginable cruelty—all in their efforts for financial gain,” stated United States Attorney Peace. “My office will continue to work tirelessly to ensure that the victim here receives justice and that our community is safe from these senseless acts of violence.”
Mr. Peace thanked the Joint Violent Crimes Task Force, which is comprised of agents from the FBI and detectives from the NYPD, for their assistance with the investigation.
“A victim subjected to kidnapping, brutal beatings, inhumane torture, and cash demands – this not a plot from a movie – these three defendants allegedly conspired and carried out these despicable acts on their target. The alleged actions of Boone, Bruce, and Valentin are disturbing and will not be tolerated. FBI New York is determined to ensure brazen individuals willing to use inconceivable violence for financial gain are brought to justice,” stated FBI Assistant Director-in-Charge Smith.
As set forth in court filings, Boone, Bruce and Valentin conspired to kidnap the victim on December 9, 2022. The victim was seized from outside of his apartment complex in Astoria. After forcing the victim at gunpoint into a vehicle, the assailants drove the victim to New Jersey, subjected him to escalating forms of torture, and held him for nearly five hours. Among other things, the assailants beat the victim with a gun, poured bleach on him, burned his back and legs with a blowtoch, and also sliced the victim’s ear with a knife. The victim was ultimately released on the Upper East Side of Manhattan. A few days after the kidnapping, one of the defendants—Valentin—sent text messages to the victim, threatening further harm to him and his family if he failed to pay the defendants $150,000 in cash and 50 lbs. of marijuana.
All three defendants have extensive criminal histories, and are believed to have participated in a series of residential burglaries committed by a violent street gang operating out of New Jersey. Valentin had also previously pled guilty in New Jersey state court to aggravated assault in connection with a prior kidnapping.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of kidnapping conspiracy, the defendants face a maximum sentence of life imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Joshua B. Dugan and Lorena Michelen.
The Defendants:
AASIM BOONE
Age: 41
Englewood, New JerseyJARRETT BRUCE (also known as “Inf,” “Infinite” and “Infamous”)
Age: 40
Englewood, New JerseyLESLY VALENTIN
Age: 38
Asbury Park, New JerseyE.D.N.Y. Docket No. 23-CR-292 (S-1) (RPK)
Three Defendants Pleaded Guilty in US Coast Guard Hoax Call CaseRead the Press Release
SAN JUAN, Puerto Rico – Three defendants pleaded guilty to Conspiracy to Communicate a False Distress Signal and False Statements in US Coast Guard hoax call case.
Pursuant to court filings, on June 28, 2022, Harold Carrión Butter, while trying to evade local authorities regarding a domestic violence case, purposefully hid himself in an attempt to make it seem like he was swept out to sea at La Poza Del Obispo in Arecibo, Puerto Rico. Carrión Butter called his mother, Justinita Butter who, after several phone conversations with her son, called local 9-1-1. She falsely reported that her son had not been answering his phone and was missing from the beach at Poza Del Obispo in Arecibo, Puerto Rico. Her 9-1-1 call was transferred to United States Coast Guard (USCG) Sector San Juan, which immediately began to coordinate a search and rescue operation for Carrión Butter. Throughout that night and following two days, through multiple phone calls with Coast Guard Officers, Justinita Butter and Miriam Delgado-Serrano, made multiple false claims that Carrión Butter did not have a phone, must have been swept out to sea, and that there was no other place he could be. All these claims were made while they were both in continuous and surreptitious communication with Carrión Butter through multiple phone calls and text messages.
On July 1, 2022, Carrion Butter was discovered by local Puerto Rico police, in a location near his family home. The USCG subsequently ended its search and rescue operation, after having diverted multiple ships, boats, and aircraft from other potential search and rescue missions and criminal-interdictions, and after having expended over $1,000,000 in assets and resources in the search.
Defendant #1 Harold Carrión Butter plead guilty to Count One of the Indictment, Conspiracy to Communicate a False Distress Signal. He was sentenced in December 2023 to time served; approximately 18 months of imprisonment served. He is currently incarcerated at the state level and facing other charges.
Justintia Butter, who was scheduled for trial beginning February 5, 2024, plead guilty on Friday, January 26. She plead guilty to Count Four which was Making a False Statement. Specifically, when USCG personnel were speaking on the phone with Ms. Butter on the morning of June 29, 2022, they asked Ms. Butter for Harold’s phone number. She told CG personnel that Harold didn’t have a phone and did not provide his number. The sentencing is scheduled for April 26, 2024.
Defendant #3 Miriam Delgado Serrano also plead guilty to Count One of the Indictment. Her sentencing is scheduled for March 1, 2024. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Federal, state and local authorities take all threat-to-life matters very seriously,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “However, when individuals make false reports to law enforcement, endangering first responders, other citizens, and wasting resources, they will be prosecuted and held accountable for their criminal conduct.”
“I commend the efforts of all interagency responders who did their utmost to find Mr. Butters as well as the efforts and diligence from all the investigative authorities that led to three arrests and justice being served in this case,” said Capt. José E. Díaz, Coast Guard Sector San Juan commander. “Hoax search and rescues cases are extremely dangerous and will not be tolerated, the consequences could be deadly, as first responders and valuable assets are placed at risk to search for survivors during a false distress alert. A prolonged hoax search and rescue situation, like the one in this case, could easily prevent people from receiving critical emergency response and lifesaving assistance that may be required to save lives in a real emergency.”
The US Coast Guard Investigative Service investigated the case.
USCG Special Assistant U.S. Attorney Helena B. Daniel from the Transnational Organized Crime Section is prosecuting the case.
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St. Louis County Man Admits Stealing Checks from Mail and Committing Check FraudRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri on Thursday admitted stealing mail from collection boxes and committing fraud with stolen checks.
Tahj K. Boyd, now 21, was caught by police after someone reported suspicious activity at the U.S. Post Office at 1100 Town and Country Commons Drive in Town and Country on Sept. 1, 2023. Two men were spotted running with black trash bags to their vehicle, which was parked in front of Postal Service collection boxes. Police stopped the car Boyd was driving on Highway 141 in Manchester, Missouri, catching Boyd and James R. Townsend with trash bags containing 110 pieces of stolen mail, including about 60 checks in amounts totaling about $32,456, Boyd admitted Thursday.
Investigators found evidence on Boyd’s phone that he’d searched for the locations of post offices and collection boxes as well as communications between Boyd and others discussing the theft of mail.
Boyd and Townsend were indicted in U.S. District Court in St. Louis on Sept. 21, 2023. When Boyd was arrested on October 18, investigators found debit cards bearing the names of other people and learned that Boyd had been committing fraud with checks stolen from the mail. Between June 2022 and October 2022, Boyd and his co-conspirators deposited or attempted to deposit approximately 21 checks totaling about $83,517 using the six debit cards found in Boyd’s bedroom. Boyd deposited some of the checks and recruited others to allow their accounts to be used to deposit checks, he admitted in his plea.
Through the deposit of forged and fraudulent checks and his theft of mail, Boyd admitted intending to cause a loss of at least $115,973.
James R. Townsend, 19, of Ferguson, was arrested with Boyd. He pleaded guilty to mail theft in October.
Boyd is scheduled to be sentenced May 8. The mail theft charge carries a penalty of up to five years in prison, a $250,000 fine, or both.
The U.S. Postal Inspection Service, the Town and Country Police Department, the Manchester Police Department and a U.S. Marshals Service task force that includes the St. Louis County Police Department investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Slidell Man Sentenced for Violations of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that RODERICK WILLIAMS, age 27, of Slidell, was sentenced on January 31, 2024 by the Chief United States District Judge Nannette Jolivette Brown to sixty (60) months imprisonment to be followed by three (3) years of supervised release and a $200 mandatory special assessment fee after previously pleading guilty to two counts of an indictment charging him with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
According to court documents, on April 9, 2023, New Orleans Police Department (NOPD) officers stopped a vehicle being driven by WILLIAMS. Thereafter, officers obtained a search warrant for the vehicle and located a Glock Model 19, 9-millimeter semi-automatic handgun in the trunk. This handgun was loaded, with one bullet in the chamber and carried an extended, twenty-five (25) round magazine.
On April 28, 2023, investigators conducted video surveillance of the intersection of Chef Menteur Highway and Werner Drive. Officers noted an unknown black male hold a firearm as he entered a convenience store. NOPD officers were notified, entered the store and as they approached WILLIAMS, he attempted to conceal the firearm in his waistband. After noticing the outline of a firearm in WILLIAMS’s waistband, officers searched him and seized a Glock Model 26, 9-millimeter semi-automatic handgun.
WILLIAMS had previously been convicted of felonies that prohibited him from possessing firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. This case is being prosecuted by Special Assistant United States Attorney Nicholas Rayburn of the Violent Crimes Unit.
Slidell Man Pleads Guilty to Receipt of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that CHRISTOPHER YARBROUGH (“YARBROUGH”), age 43, of Slidell, pled guilty on January 31, 2024 to receipt of child pornography, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1). YARBROUGH faces a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years imprisonment, and/or a fine of up to $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense. In addition, YARBROUGH faces a term of supervised release of no less than five (5) years and up to life, after his release from prison, as well as payment of a $100 mandatory special assessment fee.
According to court documents, the case against YARBROUGH stemmed from an online Child Sexual Abuse Material (“CSAM”) investigation by the Bossier Parish Sheriff’s Office. The investigation was referred to the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”). On June 26, 2023, HSI special agents, along with members of the Slidell Police Department and the Louisiana Bureau of Investigation, executed a federal search warrant at YARBROUGH’s Slidell home. HSI agents arrested YARBROUGH for receipt of CSAM during the search. HSI’s investigation revealed that YARBROUGH received images and videos depicting the sexual exploitation of minors.
Sentencing in this matter is scheduled for May 1, 2024 before United States District Judge Jane Triche Milazzo.
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 United States Attorney’s 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.
U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations; the Bossier Parish Sheriff’s Office; the Slidell Police Department; and the Louisiana Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Project Safe Childhood Coordinator and Chief of Financial Crimes Unit.
Sikeston Man Admits Illegally Selling Machine Gun, Other FirearmsRead the Press Release
CAPE GIRARDEAU – A man from Sikeston, Missouri on Thursday admitted selling a machine gun and other firearms to an undercover federal agent.
Averyoun Quentez Lane, 18, admitted selling two Glock pistols on July 3, 2023, to an undercover special agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). One of the pistols was equipped with an aftermarket “switch” that converted it into a fully automatic weapon. The conversion device alone is defined as a machine gun under federal law. Lane told the agent that he knew what the device did and instructed the agent on how to operate it. Lane also offered the agent a semiautomatic pistol and a stolen .38-caliber revolver on July 11, the day after the revolver was stolen in Sikeston. Lane sold the revolver before the agent could buy it but did sell the agent an AR-15-style weapon that day. After his arrest on an unrelated matter on July 13, Lane admitted obtaining and selling firearms on a regular basis. He did not have the proper license to do so.
Lane pleaded guilty in U.S. District Court in Cape Girardeau to one felony count of unlawfully transferring a machine gun and one felony count of engaging in the business of dealing firearms.
Lane is scheduled to be sentenced May 16. The machine gun charge is punishable by up to 10 years in prison, a $250,000 fine, or both prison and a fine. The firearm dealing charge is punishable by up to five years in prison and the same fine.
The ATF and the Sikeston Department of Public Safety investigated the case. Assistant U.S. Attorney Timothy Willis is prosecuting the case.
Siemens Industry, Inc., to Pay over $1 Million to Resolve False Claims Act Allegations Related to Public Housing ContractRead the Press Release
DETROIT – Siemens Industry, Inc., a subsidiary of Siemens Corporation, has agreed to pay over $1 million to resolve possible False Claims Act violations, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Inspector General Rae Oliver Davis with the U.S. Department of Housing and Urban Development.
Siemens Industry, Inc., on behalf of itself and predecessor entity Siemens Building Technologies, Inc. (Siemens), agreed to pay $1,086,430 to resolve allegations under the False Claims Act related to a contract it entered into in 2011 with the Hamtramck Housing Commission, a HUD-funded public housing authority in Hamtramck, Michigan. Under the contract, Siemens would install energy efficiency improvement measures at two Hamtramck public housing facilities. During the development of that energy performance contract, Siemens calculated the amount of energy savings the improvement would deliver. The Hamtramck Housing Commission submitted records to HUD using data from Siemens’s analysis. The settlement resolves allegations that Siemens relied on inaccurate data in its analysis, which led to the United States paying a larger annual subsidy to the Hamtramck Housing Commission than it otherwise would have.
“Federal contractors are expected to deal honestly with federal agencies, even where there are intermediaries between the agency and the contractor,” said U.S. Attorney Ison. “This settlement demonstrates our Office’s commitment to protecting the taxpayers’ money in any matter where the government ultimately suffers from misconduct by contractors.”
“The False Claims Act is an important tool for holding accountable those who are dishonest in their dealings with government programs. This settlement represents HUD OIG’s commitment to protect the integrity of HUD’s programs and safeguard taxpayer dollars that support vulnerable communities who rely on them,” said Inspector General Rae Oliver Davis with the U.S. Department of Housing and Urban Development. “We appreciate the continued support of the United States Attorney in bringing this matter to today’s conclusion and look forward to our continued partnership.”
The civil settlement resolves the claims brought by Kevin Kondrat and Jessica Jones under the qui tam or whistleblower provisions of the False Claims Act. Under these provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. The whistleblowers will receive $179,260.85 from the settlement. The qui tam case is captioned United States ex rel. Kondrat, et al. v. Siemens Corporation, et al., No. 21-10594 (E.D. Mich.).
The matter was investigated by Assistant U.S. Attorney Jonny Zajac of the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HUD-OIG.
The claims resolved by the settlements are allegations only; there has been no determination or admission of liability.
Self-Proclaimed “Satans Child” Sentenced to 50 YearsRead the Press Release
Orlando, Florida – United States District Judge Carlos E. Mendoza has sentenced Miguel Alejandro Diaz Gonzalez (41, Orlando) to 50 years in federal prison for production and transportation of child sex abuse material. Diaz Gonzalez entered a guilty plea on May 18, 2023.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received a tip concerning an online media storage account associated with username “Satans child,” where investigators found child sexual abuse material. FBI agents traced that account to a home in Orlando where Diaz Gonzalez was living. Agents also recovered a video that Diaz Gonzalez produced and shared depicting him raping an 8-year-old child who had previously been in Gonzalez’s care. Two other child victims, ages 10 and 11, were also identified in the investigation as victims who Diaz Gonzalez had molested in his home. Diaz Gonzalez was also responsible for sharing and transporting several images and videos depicting children being drugged, raped, and molested by adults.
This case was investigated by Federal Bureau of Investigation, with assistance from the Orlando Police Department, the Seminole County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorneys Michael P. Felicetta and Emily C. L. Chang.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Office and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sedalia Business Owner Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
KANSAS CITY, Mo. – A Sedalia, Mo., business owner pleaded guilty in federal court today to failing to pay nearly $136,000 in employment taxes he withheld from his employee’s paychecks.
Floyd H. Kronk III, 48, waived his right to a grand jury and pleaded guilty before U.S. Chief Magistrate Judge Willie J. Epps, Jr., to a federal information that charges him with failure to pay employment tax.
Kronk started a construction company, Transition Construction, in 2010. About 95 percent of Transition’s revenues came from Furnell Companies, a Sedalia-based firm that owns and operates a hotel and various assisted living facilities throughout Missouri. Transition did most of the construction and renovating work relative to Furnell’s properties in Missouri.
Kronk retained anywhere from six to 15 employees to carry out that construction work. He withheld their designated federal income tax withholdings from their paychecks, as well as Social Security and Medicare taxes, which he was then supposed to forward to the IRS each month. Kronk admitted today that he did not file timely federal employment tax returns, nor did he deposit any part of the trust fund taxes he withheld from his employees. Instead, he retained those withholdings for his personal benefit.
Kronk withheld $135,785 from his employees’ paychecks from 2014 through 2017, which he kept for his personal benefit.
Kronk also admitted that he was non-compliant with his individual federal income tax filings and payment of those liabilities. According to today’s plea agreement, his returns for 2014 through 2017 were all filed delinquently, and with no accompanying payment. The total tax loss is $135,785 from 2014 to 2017, and $69,280 for relevant conduct for 2011 to 2013, for a total amount of $205,066.
Under federal statutes, Kronk is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by IRS-Criminal Investigation.
Schuylkill County Man Sentenced to 70 Months’ Imprisonment for Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Javier Guzman, age 52, of Pottsville, Pennsylvania, was sentenced on January 30, 2024, by U.S. District Court Judge Robert D. Mariani, to 70 months’ imprisonment on the charge of possession with intent to distribute crystal methamphetamine.
According to United States Attorney Gerard M. Karam, Guzman previously pleaded guilty and admitted to possessing between 50 and 200 grams of high-quality crystal methamphetamine for distribution in the Schuylkill County area in 2022. The charge stems from an investigation in which investigators made multiple purchases of high-quality crystal methamphetamine from Guzman in March 2022 in Schuylkill County.
The charge against the defendant resulted from an investigation conducted by the Federal Bureau of Investigation and the Schuylkill County Drug Task Force. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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SCR gang leader sentenced for racketeering conspiracyRead the Press Release
Oxford, MS – A Mississippi man was sentenced today to 20 years in prison for racketeering (RICO) conspiracy, including murder, related to his participation in the Simon City Royals (SCR) gang.
According to court documents, from 2016 until 2022, Allen Posey, 49, of Hazlehurst, Mississippi oversaw all of the criminal activities of the Simon City Royals, a violent national prison gang operating primarily in the Mississippi Department of Corrections, but with members and associates acting on their behalf outside of prisons throughout Mississippi, Louisiana, and elsewhere. Through an alliance with the violent Gangster Disciples gang and with a sophisticated structure, the Simon City Royals engaged in a host of criminal activities, including murder, attempted murder, assault, kidnapping, robbery, extortion, witness tampering, money laundering, interstate travel in aid of racketeering, large-scale drug trafficking, and fraud. Court records reflect that Posey personally ordered the murders of rival gang leaders and was involved in drug trafficking and money laundering.
The Simon City Royals engaged in widespread drug trafficking, including smuggling large quantities of methamphetamine, marijuana and synthetic marijuana, heroin, and benzodiazepines into dozens of Mississippi state prison facilities. The gang distributed these dangerous substances, including nearly 100% pure crystal methamphetamine, to inmates throughout the prison system.
Throughout the course of the conspiracy, Posey and other Simon City Royals members and associates carried out financial transactions in furtherance of the gang’s activities; these included the collection of dues, the pooling of criminal proceeds, and the clandestine distribution of funds to incarcerated members, as well as a system of “investment” loans whereby members could borrow money for revenue-generating purposes such as purchasing a supply of narcotics.
The Simon City Royals engaged in a complex and sophisticated money laundering and fraud operation. Members committed their money laundering and fraud activities using contraband cellular telephones and encrypted applications like Telegram and Protonmail.
On October 3, 2023, Posey pled guilty to Count One of an indictment which charged him with RICO Conspiracy. During a sentencing hearing on Thursday, U.S. District Judge Michael P. Mills called the gang a “diabolical organization” and sentenced Posey to 240 months in prison to be followed by five years of supervised release.
“This defendant was responsible for countless crimes, and now he will spend functionally the rest of his life in prison,” said U.S. Attorney Clay Joyner. “Safeguarding our communities from violent gangs will always be a top priority for our office, and we commend the state/federal investigative partnership that made this case possible.”
“Our neighborhoods deserve to exist without fear and intimidation inflicted by violent gangs like the Simon City Royals,” said ATF New Orleans Special Agent in Charge Joshua Jackson. “The sentence imposed today is another example of our commitment to seek the maximum prosecution for criminals who have posed such grave danger to our neighborhoods.”
“Nothing matters more than the safety of our communities,” declared Assistant Special Agent in Charge Anessa Daniels-McCaw of the Drug Enforcement Administration (DEA). “This repeat offender’s conviction exemplifies DEA’s tireless partnership with local, state and federal law enforcement to dismantle drug trafficking rings that endanger Mississippians and citizens across the country.”
This case has been investigated by ATF, DEA, U.S. Marshals Service, U.S. Secret Service, FBI Jackson Field Office, Mississippi Department of Corrections, and dozens of local law enforcement agencies across multiple states.
The case was prosecuted by Assistant U.S. Attorney Sam Stringfellow from the Northern District of Mississippi and Trial Attorney Ben Tonkin of the DOJ’s Violent Crime and Racketeering Section.
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 also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Rocklin Business Owners Plead Guilty to Conspiracy to Evade over $1 Million in TaxesRead the Press Release
SACRAMENTO, Calif. — Daniel Stewart, 59, of Lincoln, and Luke Burroughs, 59, of Loomis, pleaded guilty today to conspiracy to defraud the United States, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Burroughs and Stewart are the co-owners of Western Baler and Conveyor (WBC), a Rocklin‑based business that sells and services industrial conveyor belt systems. During the period of the conspiracy, WBC grossed several million dollars annually. Beginning in 2016, Stewart and Burroughs attempted to decrease their personal and company tax burdens by disguising personal expenses as company expenses. For example, Stewart remodeled his home, installed horse stables, and built a swimming pool and paid for all of it through WBC checks made to look like company expenses. At the same time, Stewart and Burroughs padded WBC expenses to get off-the-books cash kickbacks. Stewart and Burroughs ultimately underpaid their personal and company taxes by a combined amount of over $1 million.
In 2018 and 2019, a confidential informant (CI) working with law enforcement met with Stewart on multiple occasions, helping to reveal how the conspiracy worked. Over several meetings, the CI provided Stewart large amounts of cash in exchange for WBC checks for the same or similar amounts; Stewart and Burroughs would then divide the cash and keep it as income, while using the WBC checks to make it look like that money had instead been spent on company expenses to decrease their tax burden. In 2019 an undercover special agent (UC) joined the CI for similar meetings with Stewart and Burroughs. Stewart and Burroughs continued the cash-for-checks scheme despite being told that the cash was coming from interstate marijuana sales, including one transaction of over $150,000 that they falsely disguised as the purchase of a baler, complete with a fake invoice. The CI and UC ultimately exchanged hundreds of thousands of dollars in cash for WBC checks. For 2019 alone, Stewart and Burroughs were seeking to evade paying taxes on approximately $4 million.
As part of the conspiracy, Stewart and Burroughs caused false WBC company tax returns to be filed with the IRS for tax years 2016–2019, as well as false personal tax returns for themselves for those same tax years. In total, Stewart and Burroughs underpaid their personal and company taxes by a combined amount of $1,099,327.
This case is the product of an investigation by the IRS Criminal Investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Justin Lee is prosecuting the case.
Stewart and Burroughs are scheduled to be sentenced by U.S. District Judge Daniel J. Calabretta on May 9, 2024. Stewart and Burroughs each face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.