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Friday 15 December 2023
Retired Cook Children’s Hospital Chaplain Sentenced to 60 Years in Prison for Child PornographyRead the Press Release
A Fort Worth, Texas man who recorded himself sexually abusing a minor was sentenced yesterday to 60 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Michael Downs, 71, a retired Cook Children’s Hospital chaplain, was charged via criminal complaint in March 2023 and pleaded guilty in July 2023 to two counts of sexual exploitation of children. He was sentenced Thursday by U.S. District Judge Mark Pittman, who also ordered a lifetime of supervised release.
“This is an incredibly important case involving shocking and abhorrent conduct,” said U.S. Attorney Simonton. “One of our most veteran prosecutors worked on this matter along with our partners at Homeland Security Investigations and the Fort Worth Police Department to ensure that this defendant was brought to justice. Let this be a message to others who seek to prey on children in this way: We will do everything in our power to incapacitate you by locking you away in prison for as long as possible.”
“While preying on the vulnerability of our youth, those in positions of public trust should expect the most stern accountability for their actions,” said HSI Dallas Special Agent in Charge Lester R. Hayes Jr. “Due to our strong partnership with the Fort Worth Police Department, we were again successful in prosecuting another sexual predator and preventing the victimization of more children.”
According to plea papers, the investigation began on January 22, 2023 after a seventeen-year-old minor told her aunt she had been sexually abused by Mr. Downs. The minor female said Mr. Downs recorded the sexual abuse on an iPad.
Mr. Downs’ wife provided law enforcement with several electronic devices from their residence. Law enforcement located a hard drive that contained numerous videos and photos of Mr. Downs engaging in sexually explicit conduct with the minor.
Homeland Security Investigations and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Aisha Saleem prosecuted the case.
Recovery of Nearly a Kilo of Fentanyl in Scarborough Leads to 13 Year Sentence for Massachusetts ManRead the Press Release
PORTLAND, Maine: A career offender from Lawrence, Massachusetts was sentenced today in U.S. District Court in Portland for possessing 400 grams or more of fentanyl with intent to distribute.
Chief Judge Jon D. Levy sentenced Eddy Azcona, aka Cucu, 27, to 13 years in prison followed by five years of supervised release. Azcona pleaded guilty on July 31, 2023.
According to court records, in February 2023, members of the U.S. Drug Enforcement Administration (DEA), assisted by members of the Scarborough Police Department, arranged to make a controlled purchase of approximately a kilogram of fentanyl from Azcona. When Azcona arrived to complete the drug deal in a shopping center parking lot in Scarborough, law enforcement approached him and he attempted to flee. Driving his vehicle at high speed, Azcona crashed into an unmarked police vehicle, lost control of his vehicle and hit a light pole in the parking lot. Investigators recovered 975.4 grams of fentanyl from Azcona.
At the time of his federal arrest, Azcona had prior state convictions for drug offenses in both New Hampshire and Maine.
The DEA and Scarborough Police Department investigated this case.
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Project Safe Neighborhoods IndictmentsRead the Press Release
SACRAMENTO, Calif. — The Project Safe Neighborhoods (PSN) initiative brings together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence. At the core of PSN is setting focused and strategic enforcement priorities that help prevent violence from occurring in the first place. U.S. Attorney Phillip A. Talbert announces the following recent indictments in federal PSN cases.
A federal grand jury returned a two-count indictment Thursday against Kinayah Latson, 24, of Roseville, charging her with being a felon in possession of ammunition. According to court documents, Latson arrested on Sept. 17, 2023, after law enforcement officers responded to domestic violence 9-1-1 call and found Latson in possession of a loaded Glock-style Polymer80 firearm with 11 rounds of ammunition. Subsequently, on November 25, 2023, Latson was found in possession of a Glock-style Polymer80 firearm with 33 rounds of ammunition. This case is the product of an investigation by the FBI with assistance from the Roseville Police Department, the CHP, the Davis Police Department, the Ontario Police Department, and the ATF. Assistant U.S. Attorney Justin Lee is prosecuting the case.
On Nov. 30, 2023, a federal grand jury returned an indictment against Sovan Leng, 32, of Stockton, charging him with being a felon in possession of a firearm. According to court documents, on Oct. 16, 2023, Leng was found to be in possession of a Glock 17 9 mm pistol. Leng is prohibited from possessing a firearm due to several prior felony convictions for assault with a deadly weapon, carrying a loaded firearm, possession of a stolen vehicle, being a felon in possession of a firearm, and possession of a controlled substance. This case is the product of an investigation by the Stockton Police Department and ATF. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
On Dec. 7, 2023, a federal grand jury returned a single-count indictment against Jerone Sotolongo, 30, of Stockton, charging him with being a felon in possession of a firearm. According to court documents, Sotolongo possessed a firearm, even though he was prohibited from doing so because he is a convicted felon. This case is the product of an investigation by the Stockton Police Department and the ATF. Assistant U.S. Attorney Ross Pearson is prosecuting the case.
If convicted, these defendants face a maximum statutory penalty of 15 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are 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.
These cases are the result of the ongoing collaboration between the Sacramento Police Department and its local, state, and federal partners as part of a Public Safety Partnership (PSP) to address violent crime in our community. Started in 2022, the Sacramento PSP is a multifaceted violence-reduction strategy that relies on innovative data-driven strategies to promote public and community safety. Participating PSP partners include: the Sacramento County’s District Attorney’s Office, the FBI, the DEA, the ATF, the U.S. Marshals Service, and the U.S. Attorney’s Office.
Ponte Vedra Beach Man Pleads Guilty to Defrauding His Former Employer Out of over $22 MillionRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces that Amit Patel (31, Ponte Vedra Beach) has waived indictment by a grand jury and pleaded guilty to wire fraud and engaging in an illegal monetary transaction. Patel faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Patel operated a fraud scheme through which he embezzled approximately $22,221,454 from his employer, a business headquartered in Jacksonville (“Business A”). Specifically, Patel used his role as the administrator for Business A’s virtual credit card (VCC) program to make hundreds of purchases and transactions with no legitimate business purpose. Then, to hide and continue to operate the scheme, rather than accurately report his VCC transactions, Patel created accounting files that contained numerous false and fraudulent entries and emailed them to Business A’s accounting department. Patel used a variety of methods to hide his illicit transactions by omitting them from the files, while still having the total dollar amount of VCC expenditures match the balances paid by Business A for the VCC program line of credit. For example, to hide his fraudulent VCC transactions, Patel identified legitimate reoccurring VCC transactions, such as catering, airfare, and hotel charges, and then duplicated those transactions; he inflated the amounts of legitimate reoccurring VCC transactions; he entered completely fictitious transactions that might sound plausible, but that never actually occurred; and he moved legitimate VCC charges from upcoming months into the month of the accounting file that was immediately due to the accounting department.
Patel began making fraudulent transactions in September 2019 and continued until he was fired by Business A in February 2023. He used the proceeds of this scheme, in whole or part, to place bets with online gambling websites, to purchase a condominium in Ponte Vedra Beach, Florida, to pay for personal travel for himself and friends (including chartering private jets and booking luxury hotels and private rental residences), to acquire a new Tesla Model 3 sedan and Nissan pickup truck, to pay a criminal defense law firm, and to purchase cryptocurrency, non-fungible tokens, electronics, sports memorabilia, a country club membership, spa treatments, concert and sporting event tickets, home furnishings, and luxury wrist watches.
As part of his plea agreement, Patel has agreed to forfeit $22,221,454.40, the proceeds of the wire fraud, as well as a condominium in Ponte Vedra Beach, a 2021 Telsa Model 3 sedan, and a Patek Philippe Nautilus watch that he purchased or funded with the proceeds. He also agreed to pay full restitution to his former employer.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Brenna Falzetta and Michael J. Coolican. The asset forfeiture is being handled by Assistant United States Attorney Mai Tran.
Download Plea AgreementPine Ridge Man Sentenced to Life in Federal Prison for Killing Three PeopleRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Pine Ridge, South Dakota, man convicted of three counts of First Degree Murder, three counts of Discharge of a Firearm During a Crime of Violence, and one count of Possession of a Firearm and Ammunition by a Prohibited Person. The sentencing took place on December 14, 2023.
Elijah West, age 26, was sentenced to life in prison on each count of First-Degree Murder and an additional ten years for each firearm charge, all to run consecutively. In total, West received three life sentences plus an additional 30 years’ custody. West was also ordered to pay a $700 special assessment to the Federal Crime Victims Fund.
In the evening hours of January 4 into the early hours of January 5, 2022, West entered a trailer near Wounded Knee, South Dakota, where a group of people had gathered around a kitchen table to visit. West briefly spoke with the group before he removed a firearm from his waistband and, completely unprovoked, fired upon and killed three innocent people. West then ordered a fourth person at gun point to find him a ride to a separate residence in Manderson, South Dakota. After arriving at that residence, West left with another individual. As soon as West left, the party called 911 to report the shooting. West was arrested in the early hours of January 5, 2022, and law enforcement recovered the murder weapon in his possession.
West was indicted by a federal grand jury in January of 2022 and was found guilty on all charges by a jury following a five-day jury trial in Rapid City in September 2023.
“This case stands out as a particularly heinous example of human depravity,” said U.S. Attorney Alison J. Ramsdell. “The defendant committed unspeakable acts of violence for which no sentence would ever be sufficient, but we hope these three life sentences, which must be served consecutively, give the victims’ families some measure of closure as they grieve the senseless loss of their loved ones. We are grateful to our partners at the FBI and the Oglala Sioux Tribe’s Department of Public Safety for their relentless investigative efforts.”
"It is our duty to bring justice and answers to grieving Tribal communities,” said FBI Minneapolis Special Agent in Charge Alvin M. Winston Sr. “The investigation of West, and his life sentences, stand as a testament to the collaboration and dedication of the FBI, the Oglala Sioux Tribe Department of Public Safety Criminal Investigation Division, and the United States Attorney’s Office to bring justice to victims of violent crimes in Indian County. The FBI and its partners will investigate and hold accountable those who show such a callous disregard for innocent lives."
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case 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 FBI and the Oglala Sioux Tribe Department of Public Safety Criminal Investigation Division. Assistant U.S. Attorneys Sarah B. Collins and Benjamin Patterson prosecuted the case.
West was immediately remanded to the custody of the U.S. Marshals Service.
Oshkosh Felon Convicted at Trial on Firearm ChargeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 14, 2023, Douglas T. Murphy (age: 35) of Oshkosh, Wisconsin, was found guilty following a jury trial in federal court in Green Bay, Wisconsin, of 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 the evening of June 4 and into the early morning hours of June 5, 2023, Murphy repeatedly pointed a Cobra .380 caliber handgun at several children inside a residence located in downtown Oshkosh. Murphy also used the firearm to “pistol whip” the mother of the children, causing an open wound on her scalp. A 911 call from the children led to an almost 6-hour standoff with law enforcement. At around 6 a.m., the Oshkosh Police Department SWAT Team entered the residence and arrested Murphy. The loaded firearm was located in close proximity to Murphy at the time of his arrest.
Murphy has prior felony convictions in Waukesha, Manitowoc, and Winnebago Counties.
Murphy faces up to a fifteen-year term in federal prison when he is sentenced by Senior United States District Judge William C. Griesbach in March 2024. Murphy will remain in custody pending that hearing.
The case was investigated by the Oshkosh Police Department with the assistance of the Winnebago County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Michael Schindhelm and Daniel R. Humble.
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Orlando Fentanyl Dealer Sentenced to Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Lennen Pacheco Colon (25, Orlando) to 6 years and 11 months in federal prison for distributing 40 grams or more of fentanyl, to be served consecutive to a 200-month sentence Colon has received in the Southern District of Florida for armed kidnapping and carjacking. Colon had pleaded guilty to the MDFL offenses on April 11, 2023.
According to court documents, in January 2023, Colon advised a confidential informant (CI) that he had a supply source who wanted to sell $25,000 worth of fentanyl pills. The CI informed Colon that the CI wanted a sample of the pills before agreeing to a large order. Colon agreed to sell the CI 1,000 fentanyl pills for $4,5000.
On or about January 18, 2023, Colon met the CI at a location in Hillsborough County. Colon met the CI at the CI’s vehicle and exchanged a bag of pills for $4,500. The bag contained 992 pills that a Drug Enforcement Administration lab later confirmed to be fentanyl.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tampa Police Department, and the Hillsborough County Sheriff’s Office as part of the Organized Crime Drug Enforcement Task Force (OCDETF), which identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Ohio Man Indicted for Alleged Child Sex TraffickingRead the Press Release
PITTSBURGH, PA – A resident of Euclid, Ohio, has been indicted by a federal grand jury in Pittsburgh for sex trafficking of a child, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Donte Lashawn Cole, 39, as the sole defendant. According to allegations contained in a previously filed federal criminal complaint, in May 2023 Cole transported a minor female victim from Ohio to a hotel in Monroeville, Pennsylvania, to engage in commercial sex acts. Cole allegedly used online advertisements to market the minor for commercial sex services in Western Pennsylvania and elsewhere, from April 2023 to October of 2023. With the assistance of the Northeast Ohio Human Trafficking Taskforce, Cole was taken into custody at his residence in Euclid, Ohio, where the minor was also located partially nude in an upstairs bedroom.
“This defendant allegedly offered for sale the sexual exploitation of a child—an egregious violation of the innocent,” said U.S. Attorney Olshan. “Along with our partners in federal, state, and local law enforcement, we will continue our work to identify, investigate, and bring to justice those who pursue profit through sex trafficking of minors. We implore anyone who knows or suspects that a minor may be the victim of sex trafficking to contact law enforcement.”
“Without collaboration between law enforcement, human traffickers are able to move from city to city and state to state in the shadows, while profiting from traumatic acts their victims feel obligated to perform,” Pennsylvania Attorney General Michelle Henry said. “Our charges, and the ensuing federal indictment, bring this egregious conduct to light and seek to end a reign of predatory behavior.”
The federal charge provides for a mandatory minimum sentence of 10 years and up to life in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rob Schupansky and Special Assistant United States Attorney Summer Carroll are prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations and the Attorney General’s Office of Pennsylvania conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.
If you are the victim of human trafficking or may have information about a potential trafficking situation, please call the FBI, local law enforcement, or the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur. To submit a tip to the NHTRC online please visit https://humantraffickinghotline.org/report-trafficking.
An indictment and a criminal complaint are accusations. A defendant is presumed innocent unless and until proven guilty.
Oakland Resident Pleads Guilty to Attempting to Illegally Export Firearms and Night Vision Rifle Scopes to the Sultanate of OmanRead the Press Release
SAN FRANCISCO – Oakland resident Fares Abdo Al Eyani, 40, pleaded guilty in federal court in San Francisco to one count of conspiring to export defense articles and seven counts of attempting to export defense articles, announced United States Attorney Ismail J. Ramsey, Assistant Attorney General for the Department of Justice National Security Division Matthew G. Olsen, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, and Homeland Security Investigations Special Agent in Charge Tatum King. The plea was accepted by the Hon. Charles R. Breyer, U.S. District Judge.
According to the plea agreement, Al Eyani admitted he acquired no less than four firearms, with magazines and ammunition, and at least 44 rifle scopes, monoculars, and goggles with night vision capabilities in 2019. In November 2019, Al Eyani attempted to send the firearms to the Sultanate of Oman in shipping containers departing from the Port of Oakland. He concealed the firearms by disassembling them, wrapping them in aluminum foil, and then secreting them within automobiles inside the shipping container. Then, in December 2019, Al Eyani attempted to export the 44 rifle scopes, monoculars, and goggles to the Sultanate of Oman in two shipping containers departing from the Port of Oakland. Law enforcement searched the containers and seized the firearms, the magazines, and the ammunition, as well as the 44 rifle scopes, monoculars, and goggles with night vision capabilities. These actions thwarted Al Eyani’s unlawful scheme.
The commercial export of arms, ammunitions, implements of war and defense articles and services from the United States is governed by the Arms Export Control Act (“AECA”), 22 U.S.C. § 2778, and its attendant regulations, the International Trafficking in Arms Regulations (“ITAR”), 22 C.F.R. §§ 120-130. The AECA authorizes the President, among other things, to control the export of “defense articles” deemed critical to the national security and foreign policy interests of the United States. The AECA also authorizes the President to designate goods as “defense articles,” require licenses for the export of such articles, and promulgate regulations for the export of such articles. By executive order, the President has delegated this authority to the United States Department of State, Bureau of Political-Military Affairs, Directorate of Defense Trade Controls (“DDTC”). Accordingly, the DDTC has promulgated regulations under the AECA, known as the ITAR. The ITAR defines a “defense article” as any item on the United States Munitions List (“USML”). Persons desiring to export items on the USML from the United States to a place overseas must first register with the DDTC and obtain individual export licenses prior to any shipment abroad.
The plea agreement lays out that the four firearms, the magazines, and the ammunition, as well as at least seven of the night-vision rifle scopes, were defense articles prohibited from export without a license by the AECA and the ITAR. Al Eyani did not have a license to export the defense articles.
In a separate plea agreement, Al Eyani’s wife, Saba Mohsen Dhaifallah, 41, also pleaded guilty to making false statements to Federal Bureau of Investigation special agents during the investigation of this matter, in violation of 18 U.S.C. § 1001. Her plea also was accepted by Judge Breyer.
Judge Breyer scheduled Al Eyani’s and Dhailfallah’s sentencing hearings for March 22, 2024, at 9:30 am. Al Eyani faces a maximum sentence of twenty years’ imprisonment and a fine of $1,000,000. Dhaifallah faces a maximum sentence of five years’ imprisonment and a fine of $250,000. In addition, the court may order each defendant to serve an additional period of supervised release, if appropriate. However, any sentence would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The National Security and Cybercrime Section of the United States Attorney’s Office for the Northern District of California is prosecuting the case in consultation with the Counterintelligence and Export Control Section of the National Security Division of the Department of Justice. The prosecution is the result of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, and United States Customs and Border Protection.
Numerous Individuals Charged with Illegally Possessing Machineguns in Montgomery, AlabamaRead the Press Release
Montgomery, Alabama – In the past two months, a federal grand jury has indicted eleven individuals on charges relating to possession of machineguns, announced Acting United States Attorney Jonathan S. Ross. Each of the alleged offenses occurred in Montgomery, Alabama, and each of the machineguns at issue was a semiautomatic firearm that had been converted to fully automatic through the installation of a machinegun conversion device.
Machinegun conversion devices, commonly known as “switches” or “auto sears,” are installed on firearms and allow the guns to function as a fully automatic weapon, capable of firing up to 20 rounds per second. These devices have grown in popularity over the past few years and, due to their rapid rate of fire, pose a significant threat to communities and law enforcement. The possession of a machinegun, which, under the relevant federal statute, includes the possession of a conversion device alone, carries a penalty of up to ten years in prison and a $250,000 fine.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
These cases are being prosecuted as 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. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime. Critical federal PSN partners include the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshals Service (USMS), and the Federal Bureau of Investigation (FBI).
The Montgomery Police Department and the ATF investigated these cases, with assistance from the USMS. Assistant United States Attorneys Brandon W. Bates, Eric M. Counts, Joel Feil, John J. Geer, III, and Justin L. Jones are prosecuting the cases.
More information on the recent indictments can be found in the table below.
DEFENDANT NAME
DEFENDANT AGE
INDICTMENT DATE
CHARGE(S)
DATE(S) OF ALLEGED OFFENSE(S)
Shykeem Kartarell Grant
21
November 29, 2023
Possession of a machinegun; felon in possession of a firearm; and tampering with a witness by intimidation or threats
November 2, 2023 (firearm offenses); and October 26, 2023 (witness tampering offense)
Quadarius Deandre Lindsey
30
November 29, 2023
Possession of a machinegun; and felon in possession of a firearm
May 29, 2023
Deandre Nyquan Lucas
20
November 29, 2023
Possession of a machinegun
August 18, 2023
Clarence Anthony McCall
20
November 29, 2023
Possession of a machinegun (two counts)
August 18, 2023 (first count); October 30, 2023 (second count)
Vandarius Jamal Parks
21
November 29, 2023
Possession of a machinegun
July 25, 2023
Tavius Smith
23
November 29, 2023
Possession of a machinegun
May 6, 2023
My’qurious Xavier Solomon
19
November 29, 2023
Possession of a machinegun; and tampering with a witness by intimidation and threats
October 25, 2023 (firearm offense); and October 31, 2023 (witness tampering offense)
Dequarius Dewayne Thornton
26
November 29, 2023
Possession of a machinegun; and illegal receipt of a firearm by a person under indictment
September 3, 2023
Cammeron Leroy Youngblood
23
November 29, 2023
Possession of a machinegun; and illegal receipt of a firearm by a person under indictment
August 23, 2023
Keonte Martin
20
October 31, 2023
Possession of a machinegun
October 5, 2023
Jaxon Smith
19
October 31, 2023
Possession of a machinegun
October 25, 2023
As previously stated, the possession of a machinegun, or the possession of a conversion device alone, carries a penalty of up to ten years in prison. The maximum sentences for the various other charges are: (1) up to 15 years in prison for possessing a firearm after being convicted of a felony offense; (2) up to 5 years in prison for illegally receiving a firearm while under indictment; and (3) up to 20 years in prison for tampering with a witness by intimidation and threats.
Trials for Martin and Jaxon Smith are currently scheduled for January 8, 2023. Trial dates for the defendants indicted on November 29, 2023, will be scheduled early next year.
North Dakota Man Sentenced to 14 Years in Federal Prison for Possession with Intent to Distribute Illegal DrugsRead the Press Release
A man, who admitted he was delivering drugs for a drug cartel was sentenced on December 6, 2023, to 14 years in federal prison.
Ethan Longie, 20 from Bismarck, North Dakota received the prison term after an October 5, 2022, guilty plea to Possession with Intent to Distribute a Controlled Substance.
In a plea agreement, Longie admitted on February 4, 2022, he was stopped after a short pursuit in Cerro Gordo County, Iowa and was found in possession of more than 350 grams of actual methamphetamine, fentanyl pills, fentanyl powder, and other narcotics. Longie further admitted he was delivering drugs for the “Cartel” and that he had been delivering methamphetamine to various areas. While in custody pending his federal sentencing, Longie continued to distribute drugs and threatened to stab another inmate to keep him from informing on Longie.
Longie was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Longie was sentenced to 168 months’ imprisonment. He was ordered to pay a mandatory special assessment of $100. He must also serve a 5 -year term of supervised release after the prison term. There is no parole in the federal system.
Longie is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by Cerro Gordo County Sheriff’s Office, Mason City Police, the North Central Iowa Drug Task Force, and the Iowa Department of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-3014-LTS-KEM.
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North Carolina Lawyer Sentenced to PrisonRead the Press Release
United States Attorney Gregory J. Haanstad announced that on December 15, 2023, Jack Daly (age: 51) was sentenced to 4 months’ imprisonment for conspiring to (i) commit mail fraud and (ii) lie to the Federal Election Commission (“FEC”). Daly’s term of imprisonment will be followed by two years of supervised release, and he will also pay a $20,000 fine, along with two separate payments of $69,978.37 for restitution and forfeiture.
Publicly filed documents in the case reflect that Daly and his co-conspirator Nathanael Pendley—both lawyers—operated a political action committee (the “Draft PAC”) that solicited donations by promising donors their money would be used to convince David Clarke, Jr., the former Sheriff of Milwaukee County, to campaign for a seat in the United States Senate. Over the relevant period, the Draft PAC raised over $1.6 million. Most of this money was spent on additional fundraising to benefit Daly and Pendley, not genuine efforts to convince Clarke to run for office.
Court documents indicate that in their solicitations to small-dollar donors, Daly and Pendley falsely suggested that Clarke was still likely to run for the Senate, even after Clarke’s explicit public statement to the contrary. In communications with both Clarke and the FEC, Daly and Pendley also falsely represented that Daly was no longer responsible for the Draft PAC’s operation.
According to court records, Daly targeted vulnerable victims, including a woman with Alzheimer’s and elderly veterans. One 96-year-old victim, who “lived alone on a very limited income,” noted that Daly and Pendley were “con artists” who “should be punished” because “they scammed many working people,” instead of “using their education to help” others.
When imposing sentence, United States District Court Judge J.P. Stadtmueller observed that Daly’s behavior “crosses the line with affirmative actions that tended to mask the true facts” surrounding Clarke’s intentions. Judge Stadtmueller also noted Daly’s “level of experience” as both a fundraiser and lawyer in explaining the sentence.
“At its core, this was a straightforward fraud case,” said U.S. Attorney Haanstad. “The evidence in this case was clear: Mr. Daly lied to obtain money that he used for his own benefit. I commend everyone who worked together to seek justice for the victims of this scheme.”
“Using a political action committee, also known as a PAC, to fraudulently solicit donations for personal gain is a serious offense,” said Special Agent in Charge Michael E. Hensle. “Such actions undermine the integrity of the political process and erode public trust. Jack Daly and Nathanael Pendley used former Milwaukee County Sheriff David Clarke’s name to victimize thousands of individuals who thought they were making legitimate contributions. The FBI will continue to utilize all available resources, and work with our partners to identify, pursue, and bring offenders to face justice.”
Pendley is set for sentencing before Judge Stadtmueller on December 28, 2023.
This matter was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Kevin Knight and Benjamin Taibleson.
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Nineteen-Time Convicted Felon Sentenced to Fifteen Years for Firearm and Drug OffensesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Terrell Robinson (37, Orlando) to 15 years in federal prison for possession of a firearm by a convicted felon and possession with the intent to distribute controlled substances. The court also ordered Robinson to forfeit a firearm, ammunition, and cash which were used in the offense and were proceeds of the offense. Robinson had pleaded guilty on August 14, 2023.
According to court documents, law enforcement officers observed Robinson’s vehicle as he engaged in a hand-to-hand drug transaction at a gas station. When they activated their lights and sirens, Robinson fled and escaped onto Route 408. While Robinson drove on Route 408, unmarked law enforcement vehicles continued to follow him and, when Robinson stopped at another gas station, they arrested Robinson. At the time of his arrest, Robinson possessed a firearm, ammunition, drug distribution materials, cash, baggies, scales, and various controlled substances such as fentanyl, methamphetamine, and cocaine (pictured below):
Robinson has been convicted 19 times in state court, including convictions for aggravated assault with a deadly weapon on March 11, 2008, delivery of cocaine on August 13, 2008, and delivery of cocaine on January 25, 2010. Therefore, he qualified as an Armed Career Criminal and a Career Offender under federal sentencing rules.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Orlando Police Department. It was prosecuted by Assistant United States Dana E. Hill.
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.
New Orleans Man is Sentenced for Drug and Machinegun OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that EMANUEL ROSS, age 24, a resident of New Orleans, was sentenced on December 13, 2023 by U.S. District Judge Ivan L.R. Lemelle to 63 months imprisonment after previously pleading guilty to Possession with Intent to Distribute Cocaine and Fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C) and Possession of a Machinegun in violation of Title 18, United States Code, Section 922(o). Judge Lemelle also placed ROSS on supervised release for three (3) years following his release from imprisonment and ordered him to pay a mandatory $100 special assessment fee for each count of conviction.
Court documents reveal that the Federal Bureau of Investigation Violent Crime Task Force and the New Orleans Police Department began investigating ROSS in mid-2022 and discovered an online video of him firing a pistol that had been converted into a machine gun through a “switch” device. A warrant-based search of ROSS’s residence by law enforcement officials on January 27, 2023, revealed the presence of cocaine, fentanyl and various weapons including the machine gun seen on the online video.
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.
United States Attorney Evans praised work of the Federal Bureau of Investigation Violent Crimes Task Force, and the New Orleans Police Department. Assistant United States Attorney Mark A. Miller of the Violent Crime Unit handled the prosecution.
Nash County Duo Sentenced After Theft of Nearly Sixty Firearms Leads to Their ArrestRead the Press Release
WILMINGTON, N.C. – A Nash County man who bought and sold stolen guns from a Nashville resident was sentenced today to 130 months in prison for possessing a firearm in furtherance of a drug trafficking crime and for possessing a firearm while a felon. On August 9, 2023, Kenneth Pomeroy, a convicted felon, pled guilty to the charges. Pomeroy’s co-conspirator, Rodney Alligood, also of Nash County, pled guilty to engaging in the business of dealing firearms without a license. Alligood was sentenced to 51 months in prison on September 26, 2023. The pair were arrested following the investigation into the theft of nearly 60 firearms.
“Sixty guns were stolen and then sold on the streets which could have allowed criminals to bypass background checks and get their hands on weapons to be used in violent activity,” said U.S. Attorney Michael Easley. “Gun traffickers who fuel violence by pushing stolen weapons into the community will face hard time in federal prison.”
"This case is a great example of how partnerships between local and federal law enforcement agencies take violent offenders off of the streets in our county,” said Nash County Sheriff Keith Stone. “Criminals like these two defendants are contributing to the potential for illegal guns to end up in the wrong hands and be used for violence. I would like to personally thank the U.S, Attorney's Office and the law enforcement officers involved for their hard work and dedication to making our communities safer each day."
According to court documents and other information presented in court, on May 28, 2022, a Nashville man witnessed Alligood, 33, removing firearms from a neighbor’s locked outbuilding and called the police. The police contacted the homeowner who stated that nearly 60 of her late-ex-husband’s firearms had been stolen from the outbuilding, including pistols, revolvers, rifles and shotguns. She suspected Alligood of the crime, and a review of GPS ankle-monitoring data confirmed that Alligood, who was on active probation at the time for possession of drug paraphernalia, was in the vicinity at the time of the crime. Further review of ankle-monitoring data led authorities to Pomeroy, 38, as Alligood went directly from the crime scene to Pomeroy’s house to sell him the stolen firearms. Law enforcement executed a search warrant on both Alligood and Pomeroy’s residences and recovered stolen firearms at both locations. At Pomeroy’s they also recovered a distributable amount of methamphetamine and fentanyl. Pomeroy admitted to dealing methamphetamine and fentanyl and to purchasing more than twenty firearms from Alligood and then reselling them in Fayetteville. Neither Pomeroy nor Alligood had a license to legally sell firearms.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. Nashville PD, Nash County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Phil Aubart prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-68-M-BM.
Nanticoke Electrician Pleads Guilty to Tax EvasionRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Luksh, age 64, owner of Luksh Electric, located in Nanticoke, PA, pleaded guilty on December 13, 2023, before United States District Court Judge Malachy E. Mannion to criminal tax evasion.
According to United States Attorney Gerard M. Karam, the criminal information to which Luksh pleaded guilty alleges that during 2019 and 2020, Luksh operated his business in cash in order to evade payment to the Internal Revenue Service (IRS) of business-related taxes that he owed from previous tax years.
Luksh acknowledged that the monetary loss attributable to his conduct was between $100,000.00 and $250,000.00, and he agreed to make restitution to the IRS in the amount of $237,146.98.
These charges stem from an investigation by IRS-Criminal Investigations. Assistant U.S. Attorney Jeffery St John is prosecuting the case.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Multi-Agency Take Down Results in Numerous Firearms, Illegal Narcotics, and Conspiracy ChargesRead the Press Release
WEST COLUMBIA, S.C. — United States Attorney Adair F. Boroughs, together with federal, state, and local law enforcement officials, today announced that 20 individuals were charged in federal court in connection with firearms-trafficking, narcotics, conspiracy, or other firearms offenses after a targeted violent crime reduction initiative in West Columbia. The indictments are a result of a series of coordinated arrests made following a targeted multi-agency operation that spanned several months.
In June of 2022, in response to rising violent crime in the West Columbia area, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Columbia launched an advanced, intelligence-based, multi-faceted law enforcement operation. The purpose of the operation was to target criminal entities and groups in the area, specifically those engaged in the illegal use, sale, and possession of firearms and narcotics. ATF established a controlled buy location, and ATF undercover agents and confidential informants began conducting controlled purchases of firearms and narcotics from criminal targets in the area, while local agencies conducted crime suppression operations.
Defendants included members of the Bloods, Crips, and Gangster Disciple street gangs. The joint investigation has led to 20 defendants facing federal charges. Federal agents purchased or seized 210 firearms, including several machine gun conversion devices or “switches” designed to convert a firearm to a fully automatic weapon, and thousands of rounds of ammunition. Additionally, law enforcement purchased or seized approximately 12 kilograms of methamphetamine, 500 grams of powder cocaine, 500 grams of powder fentanyl, 280 grams of crack cocaine, 2,826 fentanyl pills, and over 2,100 polydrug pills.
Some defendants were charged together, but several others were charged individually. The following charges have been filed in United States District Court, according to court documents:
- Christopher Huntington, a/k/a “Crazy,” 32, of Lugoff, was charged with multiple counts of distributing 50 grams of more of methamphetamine, as well as possession of a firearm in furtherance of drug trafficking and unlawful possession of a firearms.
- Tyrek Carroway, a/k/a “Everything,” 24, of Columbia was charged with multiple counts of distributing 50 grams of more of methamphetamine as well as possession of a firearm in furtherance of drug trafficking.
- Marcelleus Robinson a/k/a “Drawdown,” 31, of Columbia and Howard Parker, 31, of West Columbia were charged with unlawful possession of a firearms and unlawful possession of machineguns.
- Joseph Wadsworth, a/k/a “J-Roc,” 39, of Gaston, and Curtis Hill, III, 33, of Lexington, were charged with multiple counts of distribution of methamphetamine and fentanyl, as well as possession of a firearm in furtherance of drug trafficking and unlawful possession of a firearms.
- Sean Smith, a/k/a “D,” 40, of Cayce, was charged with multiple counts of distribution of 40 grams or more of fentanyl and 50 grams or more of methamphetamine, as well as possession of a firearm in furtherance of drug trafficking and unlawful possession of a firearms.
- Lamark Gill, a/k/a “Lamont,” 47, of Lexington, was charged with possession with intent to distribute fentanyl, methamphetamine, and crack cocaine, as well as possession of a firearm in furtherance of drug trafficking and unlawful possession of a firearms.
- Ricky Bell, Jr., 35, of Columbia, was charged with distribution of a mixture or substance containing a detectable amount of methamphetamine and unlawful possession of firearms.
- Dequincy Marquez Jordan, 37, of Florence, was charged with two counts of distribution of 50 grams or more of methamphetamine.
- Jordan Deshawn Waden a/k/a “Yayo,” 24, of Columbia, was charged with two counts of possession of a firearm by a convicted felon.
- Joel Jeremiah Williams, 35, of Columbia, was charged with two counts of possession of a firearm by a convicted felon.
- Angela Peterson Black, 51, of Lexington, was charged with possession with intent to distribute and distribution of a mixture or substance containing a detectable amount of methamphetamine.
- Michael Wright, 45, of Greenville, was charged with conspiring to distribute 50 grams or more of methamphetamine, as well as six counts of distributing methamphetamine and one count of possession of a firearm in furtherance of drug trafficking.
- Terrance Myers, a/k/a "Terrance Toomer," 47, of Orangeburg, was charged with being a felon in possession of a firearm.
- Kendolius Jones, a/k/a “Duke Brim,” 30, of West Columbia, was charged with felon in possession of firearms and ammunition, as well as possession of an unregistered short barrel rifle.
- Reginald Pearson, 40, of Columbia, was charged with three counts possession with intent to distribute 50 grams or more of methamphetamine, one count possession with intent to distribute 50 grams or more of methamphetamine and a quantity of cocaine, as well as felon in possession and possession of a firearm in furtherance of a drug trafficking crime.
- Everette Wanamaker, 36, of Columbia, was charged with two counts possession with intent to distribute a quantity of fentanyl, as well as six counts of felon in possession.
- Sean Dunagan, 44, of Marietta, Georgia, was charged with possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, with possession with intent to distribute fifty grams or more of methamphetamine as well as possession of a firearm in furtherance of drug trafficking and destruction of evidence.
- Gregory Huggins, a/k/a “B-Lo,” 30, of Lexington was charged with two counts of possession with intent to distribute 50 grams or more of methamphetamine and two counts of possession with intent to distribute five grams or more of methamphetamine.
- Davarious Keith, 30, of West Columbia, was charged with dealing in firearms without a license, distribution of crack cocaine, as well as felon in possession and possession of a firearm in furtherance of a drug trafficking crime.
- David Smith, 36, of West Columbia, was charged with distribution of crack cocaine.
The case was investigated by the West Columbia Police Department, Lexington County Sheriff’s Department, Richland County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Homeland Security Investigations (HSI). The South Carolina Attorney General’s Office is handling the prosecution of additional defendants facing state charges related to this investigation. The federal cases stemming from this investigation are being prosecuted by a team of Assistant United States Attorneys in the U.S. Attorney’s Office, led by Assistant United States Attorney Elle E. Klein.
The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The United States Attorney stated that all charges in this indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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west_cola_drugs_and_gun_pics_0.pdfMount Dora Man Arrested for Possession of Child Sex Abuse MaterialRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging Brett Baldwin (43, Mount Dora) him with possession of child sex abuse material. If convicted, Baldwin faces a maximum penalty of 20 years in federal prison.
According to court documents, law enforcement seized Baldwin’s cellphone during an investigation involving a missing person in Lake County. While forensically examining the cellphone, investigators discovered numerous images of child sex abuse material. Some of the juveniles depicted in the images and videos were under the age of 12.
A complaint 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 Homeland Security Investigations, the Mount Dora Police Department, and the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.
Monmouth County Man Indicted for Possession of Firearm and Fraudulent Drug Enforcement Administration Credentials while Falsely Impersonating Federal Law Enforcement AgentRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was charged with being a felon in possession of a firearm and possessing fraudulent Drug Enforcement Administration credentials while impersonating a federal law enforcement agent, U.S. Attorney Philip R. Sellinger announced today.
Wesley Rucker, 36, of Tinton Falls, New Jersey, is charged by indictment with one count each of possession of a firearm by a convicted felon, false impersonation of an officer of the United States, and possession of imitation federal law enforcement credentials.
According to documents filed in this case and statements made in court:
On Oct. 22, 2021, Rucker, a previously convicted felon, sought medical treatment in the emergency room of a hospital in Red Bank, New Jersey. While administering medical assistance, hospital staff observed a handgun in Rucker’s waistband. Rucker told hospital staff, and later local police, that he was a federal law enforcement officer and displayed fraudulent credentials falsely identifying Rucker as an employee of the Drug Enforcement Administration. As a previously convicted felon, Rucker is not permitted to possess a firearm under federal law.
The count of possession of a firearm by a convicted felon carries a maximum penalty of ten years in prison and a $250,000 fine. The count of false impersonation of an officer of the United States carries a maximum penalty of three years in prison and a $250,000 fine. The count of possession of imitation federal law enforcement credentials carries a maximum penalty of six months in prison and a $5,000 fine.
U.S. Attorney Sellinger credited special agents of the ATF, Newark Division, under the direction of Special Agent in Charge Bryan Miller, with the investigation leading to the charges and arrest. He also thanked the Red Bank, New Jersey, Police Department for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
rucker.indictment.pdfMichigan City Man Sentenced to 292 Months in PrisonRead the Press Release
SOUTH BEND – Opediah Barnett, 31 years old, of Michigan City, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to two counts of production of child pornography, announced United States Attorney Clifford D. Johnson.
Barnett was sentenced to 292 months in prison followed by 10 years of supervised release as well as $6000 in restitution.
According to documents in the case, in July of 2021 and January of 2022, Barnett persuaded two separate minors he met online to send him images of child sexual abuse material. Barnett also traveled out of state in an attempt to meet with one of the minors.
This case was investigated by the United States Department of Homeland Security, Department of Homeland Security Investigations with the assistance of the Indiana State Police; the Spokane County, Washington Sheriff’s Department; and the Raleigh County, West Virginia, Sheriff’s Department. The case was prosecuted by Assistant United States Attorney John Maciejczyk.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Metro-Atlanta man pleads guilty to money laundering of COVID-19 unemployment fundsRead the Press Release
ATLANTA - Austin Martin Siampwizi, who laundered money procured from fraudulent unemployment claims filed during the height of the COVID-19 pandemic, has pleaded guilty to a charge of money laundering conspiracy.
“Criminals used the COVID-19 pandemic to financially benefit while millions of Americans were suffering,” said U.S. Attorney Ryan K. Buchanan. “Money launderers, like Siampwizi, assisted others in committing underlying offenses in reaping the benefits of these crimes. Our office is devoted to bringing such individuals to justice.”
“Austin Martin Siampwizi engaged in a scheme with his co-conspirators to purchase and subsequently cash hundreds of money orders that were funded with fraudulently obtained unemployment insurance (UI) benefits. The UI benefits were from fraudulent online claims submitted to the Washington Employment Security Department using the identities of identity theft victims. We will continue to work with our law enforcement partners to safeguard the UI system from those who exploit these benefit programs,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General.
“This successful effort represents the U.S. Secret Service commitment to protect citizens and businesses from fraud and identity theft,” said Steven R. Baisel, Special Agent in Charge, U.S. Secret Service Atlanta Field Office. “We, along with our state, local, and federal law enforcement partners will continue to investigate, arrest, and support the successful prosecution of the criminals who choose to launder illicit proceeds or commit fraud in Georgia and across the nation.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act created a temporary federal program that provided up to 39 weeks of unemployment benefits for those unemployed as a result of the pandemic and included a provision to provide temporary benefits to individuals who had exhausted their entitlement to regular benefits or were otherwise not eligible. That temporary federal program was administered by state employment agencies.
Siampwizi laundered money procured from fraudulent unemployment claims submitted to the Employment Security Department of Washington State (“ESD”). These claims were filed using stolen personally identifiable information of more than 50 individuals. Siampwizi also admitted to submitting fraudulent Economic Injury Disaster loan and Paycheck Protection Program loan applications for his two businesses, Global Car Rental, LLC, and Global Group Development & Construction, LLC.
Sentencing for Austin Martin Siampwizi, 46, of Atlanta, Georgia, is scheduled for March 26, 2024, before U.S. District Judge William M. Ray II.
This case is being investigated by the U.S. Department of Labor, Office of Inspector General, U.S. Secret Service, U.S. Department of Homeland Security, Homeland Security Investigations, U.S. Postal Inspection Service, and the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Sarah E. Klapman is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Mason City Man Sentenced to Federal Prison for Conspiring to Distribute MethamphetamineRead the Press Release
A man who sold methamphetamine in the Mason City area was sentenced today to more than 8 years in federal prison.
Jay James Eden, age 32, from Mason City, Iowa, received the prison term after a January 13, 2023, guilty plea to conspiracy to distribute a controlled substance.
In a plea agreement, Eden admitted that between fall of 2020, and the fall of 2021, he and Nathan Carlson conspired with others to distribute 500 grams or more of a mixture containing a detectable amount of methamphetamine. Eden further admitted that on or about September 20, 2021, he knowingly distributed more than 50 grams of “ice” methamphetamine in the Mason City area. Eden was a drug dealer who was getting methamphetamine from Minnesota and re-selling it in and around Mason City.
Eden was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Eden was sentenced to 100 months’ imprisonment. He was ordered to pay a mandatory special assessment of $100. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Eden is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Cerro Gordo Sheriff’s Office, Mason City Police Department, Clear Lake Police Department, Iowa Division of Narcotics Enforcement, and the North Central Iowa Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-3025.
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Maryland Man Sentenced to 70 Months for Fentanyl Conspiracy and Wire FraudRead the Press Release
WASHINGTON – Tyronn Waters, 32, of Silver Spring, Maryland, was sentenced today to 70 months in prison for his role in a drug trafficking operation in the metropolitan region, announced U.S. Attorney Graves; Acting Special Agent in Charge David Geist, of the FBI Washington Field Office's Criminal and Cyber Division; and Special Agent in Charge Troy W. Springer of the National Capital Region, U.S. Department of Labor - Office of Inspector General.
Waters pleaded guilty on July 13, 2023, in U.S. District Court in the District of Columbia to one count of conspiracy to distribute 40 grams or more of fentanyl and one count of conspiracy to commit wire fraud.
According to the government’s evidence, law enforcement launched an investigation in August 2021 into a suspected drug trafficking ring that was running a fentanyl pill pressing operation in the District and Maryland. According to court documents, Waters admitted he played a part in the ring, and conspired to possess with intent to distribute various narcotics. Those narcotics included counterfeit Oxycodone pills containing fentanyl, produced using the ring’s three pill presses that pressed fentanyl mixes into what appeared to be genuine prescription pills. Waters admitted he purchased wholesale quantities of the counterfeit prescription pills and redistributed them for profit. Waters also admitted to possessing a firearm in connection with the offense.
On March 29, 2022, the FBI executed a search warrant at an apartment on the 1300 block of 4th St. SE, a stash house used by the conspiracy to house its pill pressing operation. During the search, law enforcement seized baggies of pills and loose powder, together amounting to more than 516 pills and more than 76 grams of a mixture and substance containing fentanyl.
Waters also was sentenced in connection with a guilty plea to one count of conspiracy to commit wire fraud. Waters and his co-conspirators obtained stolen personal identifiable information (PII) from numerous unwitting victims and used this PII to apply for unemployment insurance benefits in victim names from Maryland, North Carolina, California, and elsewhere. Waters and his co-conspirators used the unemployment insurance benefits to obtain pre-loaded debit cards used to make purchases throughout the District and Maryland. At times they wore masks and wigs to make cash withdrawals from the accounts of victims at ATMs throughout the region. Waters admitted he is accountable for losses of more than $250,000 but less than $550,000,
U.S. District Court Judge Amit P. Mehta ordered Waters to serve three years of supervised release after completing his prison sentence and to forfeit $100,000.
In announcing the sentencing, U.S. Attorney Graves, Special Agent in Charge Geist, Special Agent in Charge Springer, and Chief Smith commended the work of those who investigated the case from the Montgomery County Police Department, the U.S. Attorney’s Office, the FBI, and the Department of Labor’s Office of the Inspector General.
They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Kevin Rosenberg who investigated and prosecuted the case along with former Special Assistant U.S. Attorneys Sarah Rasalam and Marnee Rand.
Man Sentenced to Nine Years for Assault of Federal Agent and Brandishing Firearm in Vermont’s Northeast KingdomRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont announced that Ivan Carmona (also known as “Flacco”), 32, of Springfield, Massachusetts was sentenced in the United States District Court in Rutland on December 13, 2023, following his guilty pleas to assaulting a federal agent and brandishing a firearm during the assault. Chief United States District Judge Geoffrey W. Crawford sentenced Carmona to 108 months’ imprisonment to be followed by a three-year term of supervised release.
According to court records, Carmona was wanted by state and local authorities based on his alleged involvement in multiple crimes and his flight from law enforcement on November 17, 2021. United States Border Patrol (USBP) agents from the Newport Station were assisting in the pursuit based on Carmona’s proximity to, and possible crossing of, the international border during his flight. USBP agents located Carmona and a companion near North Troy, Vermont on November 18, 2021, walking along Bear Mountain Road and stopped them to investigate. Upon being asked for identification, Carmona fled from the encounter, and one of the USBP agents pursued him on foot. During the pursuit, defendant Carmona drew a loaded handgun and pointed it at the pursuing agent.
Several law enforcement agencies participated in the pursuit and apprehension of Carmona, including USBP; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Air & Marine Operations, a division of Customs and Border Protection; the Orleans County Sheriff’s Department; the Vermont State Police; the Newport Police Department; and the Vermont Drug Task Force.
U.S. Attorney Nikolas P. Kerest stated, “Our law enforcement partners make our communities safer every day. They deserve our respect and support. When law enforcement officers are assaulted while doing their jobs to enhance public safety, this office will respond with the full extent of our resources as this case demonstrates.” U.S. Attorney Kerest also commended the mutually supportive efforts of the agencies that led to the safe apprehension of an armed fugitive.
“Law enforcement officers put their lives on the line to protect and defend our communities from violent criminals on a daily basis, and all too often those acts of violence are directed against them,” said Special Agent in Charge James M. Ferguson of the ATF Boston Field Division. “This sentencing reaffirms the ATF’s commitment to hold violent members of society accountable and send to prison those who commit crimes against the brave men and women who dedicate themselves to upholding and enforcing the law.”
Assistant United States Attorney Matthew Lasher prosecuted the case. Carmona is represented by Assistant Federal Public Defender Sara Puls.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
Man Sentenced to 37 months for COVID-19 FraudRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Chandler Simbeck was sentenced to 37 months in prison, followed by three years of supervised release, for conspiracy to defraud the United States. He was also ordered to pay $151,000 in restitution.
According to the plea agreement, between March 2020 and October 2020, Simbeck conspired with Russell Foreman to submit loan applications to the Small Business Administration for himself and various businesses, knowing that the applications contained materially false and fraudulent information.
In June 2020, Simbeck and Foreman caused the creation of a limited liability company, Fusion Group, and thereafter applied to the SBA for an Economic Injury Disaster Loan (“EIDL”). The application contained materially false information concerning the establishment date of the company, its gross revenues, and costs of goods sold. In fact, Fusion Group was never a business engaged in any enterprise of any kind and did not have any revenue or employees.
On August 27, 2020, the SBA approved the loan application and $149,900 was deposited into a bank account controlled by Simbeck. Over the next several days, funds were withdrawn from the account, including an $8,000 check that was cashed; a $30,000 check and a $60,000 check that were deposited to other bank accounts controlled by Simbeck; a $50,000 check payable to a relative of Simbeck; and a $55,000 wire transfer to co-conspirator Foreman’s account.
Simbeck also received a $1,000 EIDL grant in connection with a false and misleading application dated March 30, 2020, in his own name. In addition to the EIDLs, Simbeck made three attempts to obtain Paycheck Protection Program (“PPP”) loans for two other business by submitting applications containing false information.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (“SBA”) to issue loans to small businesses and non-profit entities experiencing revenue loss due to the pandemic. The EIDL program provides loan assistance up to $150,000 to pay permissible expenses such as fixed debts, payroll, and accounts payable for certain COVID-19 impacted businesses in operation prior to February 1, 2020. Additionally, the CARES Act created the PPP, which authorizes forgivable loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules.
“Stealing from the taxpayers through COVID fraud is disgraceful as well as criminal,” said U.S. Attorney Cole Finegan. “We will prosecute those criminals who stole from hardworking business owners and employees.”
“Chandler Simbeck stole from individuals whose lives were upended by the pandemic, with no regard for the business owners and families the program was designed to support” said Todd Martin, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “COVID fraud remains a top priority for CI and we will continue to work with our law enforcement partners and the U.S. Attorney’s Office to hold those accountable who abused the system for their personal benefit.”
United States District Court Judge Raymond Moore sentenced Simbeck on December 14, 2023. Simbeck’s co-conspirator Russell Foreman was previously sentenced to 66 months in prison, three years of supervised release, and restitution.
IRS Criminal Investigation investigated the case. Assistant United States Attorney Robert Brown handled the prosecution.
CASE NUMBER: 21-cr-00165-RM
Lodge Grass meth trafficker sentenced to more than five years in prison for role in large conspiracy based on Crow Indian ReservationRead the Press Release
BILLINGS — A Lodge Grass woman who admitted to trafficking methamphetamine as part of a large-scale conspiracy based on the Crow Indian Reservation was sentenced on Dec. 14 to five years and three months in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said today.
Ranita Roselle Redfield, 47, pleaded guilty in August to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that federal law enforcement, in a collaborative effort with local and tribal law enforcement, engaged in a large-scale, multiple-state narcotics trafficking investigation centered on multiple properties on the Crow Indian Reservation. The properties, including one referred to as Spear Siding, were a source of supply of meth for both the Crow and Northern Cheyenne Indian reservations in 2022 and 2023. The investigation identified Redfield as one of the members of the organization. Redfield communicated with multiple co-conspirators regarding the distribution of meth, and she often sold meth in ounce quantities.
The U.S. Attorney’s Office prosecuted the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Lebanese Citizen Charged with Operating $5 Million Ponzi Scheme Through His Foreign-Exchange PlatformRead the Press Release
MIAMI – Henry Abdo, 46, of Lebanon, has been charged by indictment, in the Southern District of Florida, with orchestrating a $5 million investment fraud (Ponzi) scheme run through his company, Titanium Capital LLC (“Titanium”). The indictment alleges that Abdo committed wire fraud, in violation of federal law. Today, Dec. 14, the Securities and Exchange Commission filed a civil complaint against Abdo and Titanium in federal court.
According to the indictment, Abdo, Titanium’s founder and manager, advertised Titanium as a successful investment fund that operated a proprietary multi-currency foreign-exchange platform and invested in other profitable projects. Titanium solicited investors by guaranteeing a fixed rate of return of 15%, the indictment alleges. In fact, according to the indictment, Abdo made material misrepresentations about the nature of the intended investment, and in fact diverted investor funds by paying existing investors using new investor funds. Abdo also, the indictment alleges, misappropriated investor funds to pay his personal expenses, including food, hotels, travel, and clothing.
If convicted of all charges in the indictment, Abdo faces a maximum penalty of 40 years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Abdo was ordered detained pending trial on the indictment. This matter is scheduled for trial on February 26, 2024, before U.S. District Judge Aileen M. Cannon in Fort Pierce.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Russell Weigel III, Commissioner, Florida Office of Financial Regulation (“OFR”), made the announcement.
U.S. Attorney Lapointe commended the investigative efforts of the FBI and OFR in this matter. He thanked the United States Securities and Exchange Commission for their assistance. Assistant U.S. Attorney Jonathan Bailyn is prosecuting the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
An indictment contains mere allegations. All defendants are presumed innocent 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 23-cr-80209-AMC.
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Leader of Fentanyl Trafficking Organization Pleads GuiltyRead the Press Release
BOSTON – A Providence man pleaded guilty yesterday in federal court in Boston to leading a drug trafficking organization (DTO) operating in Southeastern Massachusetts and Rhode Island.
Estarlin Ortiz-Alcantara, 37, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 7, 2024. Ortiz-Alcantara was charged in July 2022 and subsequently indicted by a federal grand jury in August 2022.
Between approximately February 2021 and July 2022, Ortiz-Alcantara managed a DTO that distributed fentanyl across in Southeastern Massachusetts and Rhode Island. As part of his DTO’s operations, Ortiz-Alcantara controlled a stash house in Fall River to store, process and distribute fentanyl and employed numerous individuals who assisted with mixing, packaging and distributing fentanyl. During a search of Ortiz-Alcantara’s stash house in July 2022, more than 12 kilograms of fentanyl, as well as items consistent with running a fentanyl business, including blenders, a hydraulic press and baggies were seized.
Each of the charges provide for a sentence of at least 10 years and up to life in prison, at least five years and up to life of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; New Bedford Police Chief Paul Oliveira; and Fairhaven Police Chief Michael J. Myers made the announcement today. Special assistance was provided by the Massachusetts State Police; Homeland Security Investigations; Bristol County Sherriff’s Office; and the Fall River, Taunton, Attleboro, Scituate, Yarmouth, Providence (R.I.) and West Warwick (R.I.) Police Departments. Assistant U.S. Attorney John T. Mulcahy of the Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Le Roy Registered Sex Offender Sentenced to 10 Years in Prison for Committing a Felony Offense Involving a MinorRead the Press Release
MINNEAPOLIS – A Le Roy man was sentenced to 120 months in prison for committing a felony offense involving a minor while registered as a sex offender, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, Richard Dean Vandeweerd, 63, a registered sex offender, knowingly attempted to transfer obscene material to a minor, which is a federal offense. Using the web-based chat application Meet24, Vandeweerd contacted “Becca,” who claimed to be a l4-year-old female from Tennessee but was in fact an undercover FBI agent. Over the course of several days in February 2020, and again in November of the same year, Vandeweerd engaged in sexually explicit conversations with “Becca” and sent her pictures of his genitalia.
On April 17, 2023, Vandeweerd pleaded guilty to one count of committing a felony offense involving a minor while being required to register as a sex offender. He was sentenced in U.S. District Court by Judge Wilhelmina M. Wright on December 12, 2023.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. 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.
This case is the result of an investigation by the FBI.
This case was prosecuted by Assistant U.S. Attorney Lauren O. Roso.
Las Cruces Man Sentenced to 5 Years in Prison for Cyberstalking and Sending Threatening MessagesRead 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 John Benjamin Thornton was sentenced to 5 years in prison. Thornton, 42, of Las Cruces, pleaded guilty on Dec. 3, 2021, to a nine-count superseding indictment charging him with cyberstalking and making threats in interstate commerce.
According to court records, Thornton had been the subject of complaints since November 2020 by several people who had received disturbing or threatening messages from him, including his ex-wife, his own father, and a business owner and his employees. The charges stemmed from threatening Facebook messages posted between February and May of 2021, text messages sent to his father in May of 2021, and emails sent to the owner and employees of a quantum computing company which Thornton deemed to be evil. In the Facebook posts, text messages and emails Thornton threatened to kill the recipients.
Upon his release from prison, Thornton will be subject to 3 years of supervised release.
The Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case. Assistant United States Attorneys Marisa A. Ong and Joni Stahl are prosecuting the case.
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Lake County Man Indicted for Attempting to Entice A 13-Year-Old to Engage in Sexual ActivityRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Kahlil Yanier Amilivia Rodriguez (25, Ocala) with using the internet and his cellphone to attempt to entice a minor child to engage in sexual activity. If convicted, Rodriguez faces a minimum mandatory penalty of 10 years, and up to life, in federal prison.
According to court records, on October 5, 2023, Rodriguez had an online conversation with an undercover law enforcement officer posing as a 13-year-old girl. Rodriguez graphically described to the fictional child the sexual acts he wanted to perform with her. Rodriguez was subsequently arrested when he arrived at a pre-determined location to meet with the minor to engage in the sex acts. When investigators seized Rodriguez’s cellphone and tablet, they discovered that he also was attempting to entice another minor into sexual activity. That minor, however, was a separate law enforcement officer posing as a 14-year-old girl.
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 Homeland Security Investigations (HSI), the Lake County Sheriff’s Office, and the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.
Kentucky Man Sentenced to 24 Months for Failure to Register as a Sex OffenderRead the Press Release
LEXINGTON, Ky. — A Richmond, Ky., man, Mark Edward Morris, 46, was sentenced to 24 months in federal prison on Friday, by Chief U.S. District Judge Danny Reeves, for failure to register as a sex offender.
Morris was convicted on September 05, 2006, in Cass County, Iowa for Assault with Intent to Commit Sexual Abuse Causing Bodily Injury. The conviction requires that Morris register as a sex offender for life. After his conviction in Iowa, Morris moved to Kentucky and was classified as a lifetime registrant in the state of Kentucky. While living in Kentucky, Morris registered or completed numerous verification address forms from 2016 through 2019. On many of these forms Morris provided false addresses, even using a Wal-Mart address as his residence. During that period, the Kentucky State Police (KSP) issued Morris several warnings and/or Notifications of “Non-Compliance” with the KSP Sex Offender Registry. Morris then moved out of Kentucky for a period of time before moving back to Kentucky in 2022. Morris admitted in his plea agreement that he was residing and working in Kentucky from at least 2022 until the time of his arrest and that, during that time, he knowingly failed to register or update his registration information as required by the Sex Offender Registration and Notification Act.
Under federal law, Morris must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jeremy Honaker, Acting U.S. Marshal for the Eastern District of Kentucky, jointly announced the sentence.
The investigation was conducted by the U.S. Marshals Service. The United States was represented by Assistant U.S. Attorney Erin Roth.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Justice Department Files False Claims Act Complaint Against Insect Shield LLC and Its FounderRead the Press Release
The Justice Department has filed a complaint under the False Claims Act against Insect Shield LLC for allegedly causing the submission of false claims to the Department of Defense (DoD) under contracts to provide Army Combat Uniforms. The government has also brought claims against the Estate of Richard Lane, who was the founder, majority owner and chief operating officer of Insect Shield until his death in December 2022.
According to the United States’ complaint, several manufacturers of Army Combat Uniforms subcontracted with Insect Shield to apply permethrin, an insect-repellant, to Army uniforms and to conduct contractually-required testing to ensure that the level of permethrin it applied to the uniforms fell within the limits specified in the contracts. The complaint alleges that Insect Shield and Lane falsified the results of its permethrin testing to conceal failing test results, including by inappropriately combining results from different rounds of testing, re-labeling test samples to hide the true origin of the samples and performing re-tests of uniforms in excess of what the contract permitted.
“Government contractors and subcontractors must provide the services for which they were paid, including by performing required testing activities,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will pursue those who seek to defraud the American taxpayers by misrepresenting their compliance with contractual commitments.”
“I am thankful that we are able to hold accountable those who would defraud the government,” said U.S. Attorney Sandra Hairston for the Middle District of North Carolina. “This case demonstrates that we will continue to protect the use of taxpayer dollars and ensure that companies who provide services to the military don’t cut corners.”
“Businesses that have been contracted by the U.S. Army must comply with all their obligations and testing procedures to meet the high standards we demand,” said Special Agent in Charge Andrew Johnson of the Department of the Army Criminal Investigation Division’s (Army CID), Fraud Field Office. “Army CID is thankful for the collaborative efforts from all the agencies involved. This is a testament to our commitment of working together and holding those accountable who fail to properly test items that our men and women in uniform depend upon to keep them safe while serving their country.”
"Contractors must fulfill their obligations in an open and fair manner," said Director Terri Dilly of the Defense Contract Audit Agency (DCAA). "We are proud to have partnered with the investigative team in providing audit expertise to this case."
"The Defense Criminal Investigative Service (DCIS) is fully committed to protecting the DoD procurement process to ensure military readiness," said Special Agent in Charge Christopher Dillard for DCIS Mid-Atlantic Field Office. “DCIS will continue to work with our law enforcement partners and the Justice Department to investigate DoD contractors that fail to perform required testing and accurately report results.”
This lawsuit was originally brought by Emelia Downs, a former employee of Insect Shield, under the qui tam or whistleblower provisions of the False Claims Act. Those provisions permit private parties to sue for false claims against the United States and to receive a share of any recovery. The Act permits the United States to intervene in such lawsuits, as the United States has done in this case. The lawsuit was filed in the U.S. District Court for the Middle District of North Carolina and is captioned United States ex rel. Downs v. Insect Shield, LLC et al., No. 1:19-CV-1026.
This matter is being handled by the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of North Carolina. Investigative support is being provided by the DoD Office of Inspector General, Army CID and the DCAA.
Fraud Section Trial Attorney Jonathan Hoerner and Assistant U.S. Attorney Cassie Crawford for the Middle District of North Carolina handled this case.
The claims in the complaint are allegations only, and there has been no determination of liability.
Justice Department Announces Crackdown on Networks That Steal Money from Consumer Accounts and Use Fraudulent “Microtransactions” to Hide the Activity from BanksRead the Press Release
The Justice Department announced today a collection of cases against fraud networks that steal money from consumers and use deceptive tactics to conceal illicit activity from financial institutions, thereby allowing that illicit activity to continue. The cases include two civil actions unsealed in the past week seeking temporary restraining orders and the appointment of receivers to stop defendants from dissipating assets.
The civil cases announced today form part of a larger crackdown by the department’s Consumer Protection Branch designed to halt networks of fraudsters that use misrepresentations or unauthorized charges to steal money from consumers’ financial accounts. Fraudsters and their accomplices often hide these unauthorized charges using so-called “microtransactions” or “microdebits,” which group the unauthorized charges with a large number of low-value, straw transactions to lower the fraudster’s chargeback rate. A chargeback is a transaction that is refused or reversed by an account holder’s bank. Because a high chargeback rate can lead to account scrutiny or closure, using microtransactions to artificially reduce the chargeback rate masks the underlying fraud scheme.
“These cases mark an important step in the department’s efforts to halt schemes that prey upon individuals and small businesses across the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to using all of the tools at its disposal to prevent fraudsters from reaching into victims’ bank accounts and stealing their hard-earned savings.”
“The great work by postal inspectors in these investigations uncovered far-reaching fraud schemes, and millions of dollars in loss to victims across the country,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “The U.S. Postal Inspection Service is committed to protecting American consumers and small businesses from falling victim to these types of fraud schemes.”
United States v. Altitude Processing, Inc., et al.
In a case unsealed by the U.S. District Court for the Southern District of Florida on Dec. 11, the Justice Department alleges that a network of fraudsters, including defendants Farhan Khan of Quebec, Canada, Jeremy Todd Briley of Tallulah, Louisiana, Christopher Foufas of Key Biscayne, Florida, Brandon Hahn of Saint Cloud, Florida, and Melinda Petit-Homme of Margate, Florida, stole millions of dollars from consumers and small businesses by making recurring unauthorized charges against their bank accounts. The fraudsters used sham companies, including Altitude Processing Inc., which does business as Clear Marketing Agency, to cover their tracks and make the unauthorized charges appear legitimate.
The defendants allegedly took elaborate steps to portray the sham companies as legitimate businesses that provided online marketing services, creating bogus websites for the sham companies, fake customer authorizations for the charges and a “customer service” call center to field complaints and offer refunds. In reality, victims of the scheme never signed up for – or received – any services from the fraudsters. The complaint further alleges that some of the defendants used numerous sham microtransactions so that banks would not detect large numbers of chargebacks for unauthorized debits. After the government filed its case, the court entered a temporary restraining order enjoining the defendants from making unauthorized debits from consumers’ bank accounts. The government also successfully petitioned for the appointment of a receiver to stop defendants from dissipating assets obtained through the fraud scheme.
United States v. CB Surety, LLC, et al.
In a case unsealed by the U.S. District Court for the Eastern District of California on Dec. 12, the Justice Department alleges that a network of fraudsters, including defendants Thomas Eide of South Lake Tahoe, California, Travis Smith of Dallas, Aric Gastwirth of Las Vegas, Stephen Christopher of Poway, California, and Bryan Bass, a resident of India, through various business entities that they owned and operated, processed payments for clients that made unauthorized charges to consumers’ accounts and engaged in a variety of other illegal activities, including technical support scams.
“This case marks a significant step in halting fraud schemes that reap financial gain by scamming consumers and making misrepresentations to financial institutions,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “It also sends a clear signal that we have used, and will continue to use, all means at our disposal to protect citizens from such schemes to defraud.”
According to the allegations in the complaint, the defendants gained access to the banking system by creating sham entities to disguise the true activities of their clients and create the appearance that they were engaged in lawful businesses like selling handbags or electric scooters. The defendants allegedly recruited straw owners for the sham entities and outfitted them with phony addresses, websites and customer service lines. The defendants also used sham microtransactions to reduce the number of chargebacks and evade scrutiny from banks. After the government filed its case, the court entered a temporary restraining order enjoining the defendants from continuing to operate the scheme. The government also successfully petitioned for the appointment of a receiver to stop defendants from dissipating assets obtained through the fraud scheme.
The Consumer Protection Branch’s crackdown on cases involving unauthorized charges and microtransactions also includes several criminal cases recently announced. In a case announced two weeks ago, a California businessman was charged with access device fraud and aggravated identity theft for running thousands of unauthorized charges on the credit cards of his former customers. In another case, 14 defendants were charged in a RICO conspiracy indictment in the Central District of California alleging that defendants and associates debited consumers’ bank accounts without authorization and used shell entities and microtransactions to conceal the activity from banks. A co-conspirator pled guilty to bank fraud conspiracy in Las Vegas and was sentenced to 42 months in prison. In a related civil case, the department secured injunctive relief against and settlements totaling nearly $5 million with various persons, including several who are charged in the criminal indictment.
In other cases charging similar schemes, two individuals were charged in the Northern District of Illinois for allegedly deceiving banks, including through the use of microtransactions, in order to open and maintain bank accounts and to allow for the processing of tens of millions of dollars of checks that were purportedly authorized by consumers, but in fact were not. A Nevada man has also pleaded guilty to partnering with foreign telemarketers to use fraudulent checks to steal money from victims’ bank accounts.
USPIS is conducting the investigations, along with (for some matters) the Federal Deposit Insurance Corporation Office of Inspector General.
In the Altitude Processing case, the government is represented by Trial Attorneys Carolyn Rice and Meredith Reiter and Assistant Director Rachael Doud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James Weinkle for the Southern District of Florida. In the CB Surety case, the government is represented by Trial Attorneys Andrew Crawford and Francisco Unger and Assistant Director Rachael Doud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Tara Amin for the Eastern District of California.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.
Jefferson County Woman Who Falsely Claimed to be Disabled Sentenced to 15 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Friday sentenced a Jefferson County, Missouri woman who was part of a wide-ranging scheme that fraudulently obtained millions of dollars in disability payments to 15 months in prison.
Elizabeth Guetersloh, 67, was also ordered to repay $423,513.
A jury in U.S. District Court in St. Louis in May found Guetersloh guilty of two counts of mail fraud, 16 counts of wire fraud and eight counts of theft of government funds.
Guetersloh was among a group of now former Anheuser-Busch employees who went to a Jefferson County chiropractic clinic as part of a scheme to falsely claim disability payments from the Social Security Administration’s Disability Trust Fund and through private disability benefit insurance providers. In all, 17 defendants have pleaded guilty or been convicted at trial of charges connected to the investigation.
“These defendants schemed to take advantage of a system intended to support those who become too disabled to work. The chiropractors took thousands of dollars in fees to teach the other defendants how to fake medical conditions and pretend they were unable to perform some of the basic necessities of life, like walking, standing, sitting and lifting objects. Evidence at her trial showed that this defendant, Elizabeth Guetersloh, fraudulently filed for disability payments and then danced, hiked through waterfalls, rode roller coasters, went to wineries, and traveled to Europe, Hawaii and the Caribbean. Each defendant has been ordered to repay all of the money that was lost, which should serve as an important message that you will never come out ahead if you attempt to commit fraud.”
Chiropractors Thomas G. Hobbs and Vivian Carbone-Hobbs, co-owners of Power-Med Inc., a chiropractic clinic in Arnold, Missouri, were each sentenced to four years in prison earlier this year. Hobbs was ordered to repay $4.3 million and Carbone-Hobbs was ordered to repay $16.4 million.
Hobbs, now 66, pleaded guilty in January to a conspiracy charge and admitted conspiring to commit the crimes of health care fraud, making false statements, theft of government funds and Social Security fraud. Carbone-Hobbs, now 61, was convicted by a jury in February of conspiracy to defraud the Social Security Administration, 10 counts of health care fraud and two counts of theft of money from the United States.
“This sentence holds Ms. Elizabeth Guetersloh accountable for her criminal actions and concludes a major case that involved several medical professionals and many other defendants, who conspired to defraud SSA’s disability program and private insurers,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I applaud the efforts of those who uncovered this fraud and the investigators who tirelessly unraveled this scheme. I also commend Assistant U.S. Attorneys Tracy Berry, Dorothy McMurtry, Gwendolyn Carroll, and Special Assistant U.S. Attorney Diane Klocke who worked diligently to bring these cases to conclusion.”
The cases were investigated by the Social Security Administration – Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorneys Tracy Berry, Dorothy McMurtry, Diane Klocke and Gwendolyn Carroll prosecuted the case.
Anyone who suspects fraud involving the Disability Insurance Benefit Program should contact the Social Security Administration Office of Inspector General Hotline at: 1-800-269-0271 or https://oig.ssa.gov/report/.
Jacksonville Man Sentenced to More Than 14 Years on Methamphetamine ChargeRead the Press Release
WILMINGTON, N.C. – Michael Dennis, of Jacksonville, North Carolina, was sentenced today to 170 months in prison for possession with intent to distribute 50 grams or more of methamphetamine. Dennis, 45, pled guilty to the charge on May 23, 2023.
According to court documents and other information presented in court, Dennis had multiple run-ins with Onslow County Sheriff’s Office (OCSO) deputies through 2021 and 2022 that led to seizures of methamphetamine and other drugs. On November 6, 2021, OCSO deputies conducted a search of Dennis’s home on Blue Creek Road in Jacksonville in connection with a murder investigation. In Dennis’s bedroom, deputies found 24 grams of methamphetamine and cutting agents. Deputies returned to the home on November 16, 2021, to assist with a probation search and seized another 76 grams of methamphetamine, along with other drug items. At that time, Dennis was on probation for Financial Card Theft convictions.
On January 19, 2022, OCSO deputies were conducting surveillance at a Hubert, North Carolina, home after receiving complaints about drug activity. Deputies stopped a vehicle that was leaving that home and identified Dennis as the driver. A search uncovered an additional 49 grams of methamphetamine. During a post-arrest interview, Dennis confessed to having a pound of methamphetamine at a residence on Bratten Drive in Jacksonville. Deputies seized another 986 grams of 96% pure crystal methamphetamine, 11 grams of heroin, and $2,000 in cash from that address.
Dennis’s federal conviction follows 11 prior North Carolina state felony convictions. These include two counts of common law robbery, attempted common law robbery, two counts of larceny from a person, and three counts of financial card theft.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Onslow County Sheriff’s Office investigated the case, which Assistant U.S. Attorney Jake D. Pugh prosecuted.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-cr-00300-M.
Jacksonville Man Indicted on Bank Fraud and Theft of Mail ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Frank Anthony Acanda (26, Jacksonville) with conspiracy to commit bank fraud, eight counts of bank fraud, conspiracy to commit theft of mail, and theft of mail. If convicted, Acanda faces up to 30 years in federal prison for each count of bank fraud and conspiracy to commit bank fraud, up to 5 years for the theft of mail and conspiracy to commit theft of mail counts, and payment of restitution to the victims he and his co-defendant, Jonathan Benavide Hidalgo, defrauded.
According to the indictment, Acanda, his co-defendant, Hidalgo, and others drove around areas of Fleming Island, Jacksonville, and St. Augustine and stole large volumes of mail from residential and business mailboxes over several months. After opening the mail and stealing checks and money orders, Acanda, Hidalgo, and others acting on their behalf, deposited the items into bank accounts controlled by them and then used ATMs to immediately withdraw cash. In some instances, the co-defendants altered the stolen checks by increasing the amount of the stolen checks to maximize the amount of money they could withdraw from ATMs.
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 Clay County Sheriff’s Office, the Florida Department of Law Enforcement, and the U.S. Postal Inspection Service - Jacksonville Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein. The asset forfeiture is being handled by Assistant United States Attorney Jennifer M. Harrington.
Inmate Sentenced to 51 Months’ Imprisonment for Assault with A Dangerous WeaponRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Esteban Mercado-Colon, age 32, an inmate at United States Penitentiary Canaan, Waymart, Pennsylvania, was sentenced yesterday by United States District Court Judge Robert D. Mariani to 51 months’ imprisonment for assaulting another inmate with a dangerous weapon.
According to United States Attorney Gerard M. Karam, Mercado-Colon previously pleaded guilty to one count of assault with a dangerous weapon. On September 22, 2021, Mercado-Colon assaulted another inmate using a 6’ sharpened object wrapped in a bedsheet. The other inmate lost his eye as a result of Mercado-Colon’s conduct.
The matter was investigated by the Federal Bureau of Prisons. Assistant United States Attorney James Buchanan prosecuted the case.
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Howell County Gang Member Sentenced for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Koshkonong, Mo., man who was a member of the Gangster Disciples has been sentenced in federal court for illegally possessing a firearm.
Tanner S. Huffman, 30, was sentenced by U.S. Chief District Judge Beth Phillips on Thursday, Dec. 14, to eight years and six months in federal prison without parole.
On Sept. 19, 2022, Huffman pleaded guilty to being a felon in possession of a firearm.
According to court documents, Huffman burglarized a residence in Hardy, Arkansas, on Jan. 20, 2021, and stole numerous items, including firearms. The next day he was associated with the theft of another firearm in Howell County, Mo.
Huffman was located on Jan. 23, 2022, at the West Plains Motel in West Plains, Mo., where he had rented a room. Officers, who were conducting surveillance at the motel, saw Huffman arrive on a motorcycle he had stolen during the residential burglary. They went to Huffman’s motel room and arrested him. He was in possession of methamphetamine, marijuana, brass knuckles, a single round of 9mm ammunition, and a key to the stolen motorcycle. Officers found a loaded Walther 9mm firearm with a high-capacity ammunition magazine in the motel room.
Officers also found seven firearms, which Huffman had stolen, at his residence, including a Savage .22-caliber rifle, a Marlin .22-caliber rifle with no serial number, a Marlin 12-gauge shotgun, a Harrington & Richardson 12-gauge shotgun, a Revelation .22-caliber rifle, a J. Stevens 16-gauge shotgun with no serial number, and a Remington 30-06 rifle.
According to court documents, Huffman was a member of the Gangster Disciples, and as of 2020, was third in command of the local gang.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Huffman, who was under a state criminal justice sentence for possession of a controlled substance, has prior felony convictions for assault, receiving stolen property, resisting arrest, unlawful use of a weapon, burglary, stealing firearms, explosive weapons, and possession of a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Howell County, Mo., Sheriff’s Department, the West Plains, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hardy, Ark., Police Department,
Haskell County Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cortez Deron Fulsom, age 35, of Kinta, Oklahoma, was sentenced 120 months imprisonment for shooting and injuring another Haskell County resident.
The charges arose from an investigation by the Federal Bureau of Investigation, the Haskell County Sheriff’s Office, the District 18 Narcotics Task Force, the Oklahoma Highway Patrol, and the Oklahoma State Bureau of Investigation.
On November 10, 2022, Fulsom entered a plea of guilty to one count of Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence. At the plea hearing, Fulsom admitted to intentionally shooting the victim with a firearm with intent to do bodily injury. According to investigators, on March 22, 2019, Fulsom approached the victim at a Haskell County residence and fired multiple rounds at the victim. The victim wrestled the gun away from Fulsom but sustained a non-fatal gunshot injury during the struggle. Fulsom fled the scene and was later apprehended by law enforcement with the assistance of the Oklahoma Highway Patrol.
The crime occurred in Haskell County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the sentencing hearing in Muskogee, Oklahoma. Fulsom will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Ryan Conway and Cameron McEwen represented the United States.
Harrisburg Man Sentenced to One Year in Prison for Failing to Pay Employment TaxesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Sam Xen Duong, age 49, of Harrisburg, Pennsylvania, was sentenced yesterday by U.S. District Court Judge Sylvia H. Rambo to one year in prison for failing to withhold and pay employment taxes. The Court also ordered a one-year term of supervised release to follow the term of imprisonment and over $1.5 million in restitution.
According to United States Attorney Gerard M. Karam, Duong previously admitted that between 2012 and 2018, he failed to pay employment taxes for two companies that he owned or co-owned, BCS, Inc., and ETS, Inc. Both companies were located in Harrisburg and provided temporary workers to other businesses. To perpetuate his scheme, Duong often paid employees in cash and submitted false forms to the Internal Revenue Service.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Guatemalan Man Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Guatemalan man has pleaded guilty in federal court in Boston to unlawfully reentering the United States after deportation.
Romeo Waldemar Gabriel Lopez, 32, pleaded guilty on Dec. 12, 2023 to one count of unlawful reentry of a deported alien before U.S. District Court Judge Myong J. Joun, who scheduled sentencing for Feb. 13, 2024.
Gabriel Lopez was deported in April 2016, October 2016, April 2017, and March 2020. Sometime after his March 2020 removal, Gabriel Lopez unlawfully reentered the United States. On Sept. 8, 2023, he was arrested by immigration authorities who learned of his arrest in an unrelated state case.
The charge of unlawful reentry of a deported alien provides for a sentence of up to two years in prison, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney John J. Reynolds III of the Major Crimes Unit is prosecuting the case.
Fraudulent Nursing Diploma Scheme Leads to Federal ConvictionsRead the Press Release
MIAMI – Today a federal jury sitting in Ft. Lauderdale, Florida found defendants Gail Russ, registrar of the Palm Beach School of Nursing in Lake Worth, Florida, Cassandre Jean, owner and operator of Success Nursing Review in Brooklyn, New York, and Vilaire Duroseau, owner and operator of the Center for Advance Training and Studies in West Orange, New Jersey, guilty of wire fraud and conspiracy to commit wire fraud charges after a three-week trial.
These defendants were charged, along with eleven co-defendants, for their involvement in a scheme to sell fraudulent nursing degree diplomas and transcripts obtained from two private nursing schools that at one time were approved by the State of Florida to issue diplomas and transcripts to individuals seeking licenses and jobs as registered nurses (RNs) and licensed practical/vocational nurses (LPN/VNs).
The bogus diplomas and transcripts qualified purchasers to sit for the national nursing board exam and, after passing it, to obtain licenses and jobs in various states as RNs and LPN/VNs. The overall scheme involved the distribution of more than 7,600 fake nursing diplomas by Palm Beach School of Nursing and Quisqueya School of Nursing LLC in Palm Beach County, Fla. These schools are now closed due to the excessive failure rates of their students taking the state nursing board exam.
Those nursing applicants who passed the national nursing board exam used the fraudulent diplomas to obtain RN or LPN/VN licenses and nursing jobs with unwitting health care providers throughout the United States.
An additional eleven defendants entered pleas of guilty to conspiracy to commit wire fraud in Case No. 23-60007-Cr-Singhal. In total, 27 defendants were charged and convicted in 2023 for their participation in this nursing diploma fraud scheme, known as Operation Nightingale, that created an illegal licensing and employment shortcut for aspiring nurses.
U.S. Attorney for the Southern District of Florida Markenzy Lapointe; Special Agent in Charge Jeffrey B. Veltri, FBI, Miami Field Office; and Special Agent in Charge Omar Pérez Aybar, HHS-OIG, made the announcement.
FBI Miami and HHS-OIG Miami investigated these cases. Valuable assistance was provided by Homeland Security Investigations, Miami Field Office; U.S. Department of Veterans Affairs-Office of Inspector General; and Florida Attorney General-Florida Medicaid Fraud Control Unit, Mid-Atlantic Field Office. Senior Litigation Counsel Christopher J. Clark and Assistant U.S. Attorney Jon M. Juenger prosecuted these cases and Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-60007-CR.
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Four Men Charged with Allegedly Running Drug Trafficking Ring that Shipped Wholesale Amounts of Narcotics to Indo-Pacific RegionRead the Press Release
LOS ANGELES – Two Orange County men have been arrested on a three-count federal grand jury indictment alleging they ran a transnational drug trafficking organization that exported wholesale amounts of cocaine and methamphetamine – concealed within commercial products such as instant noodle packets, car parts, emergency kits, and subwoofers – to Australia, Papua New Guinea, and New Zealand, the Justice Department announced today.
Hoang Xuan Le, 42, a.k.a. “Big Bro,” “Blue,” and “Knockout,” of Tustin, and Tri Cao Buinguyen, 38, a.k.a. “Bro” and “Mango,” of Garden Grove, were arrested Thursday. They are scheduled for arraignment this afternoon at United States District Court in Los Angeles.
In total, four defendants – including Trung Buinguyen, 40, of Lakewood, and Narongsak Champy, 28, of Long Beach – have been charged with one count of conspiracy to export controlled substances and one count of conspiracy to distribute controlled substances. Le and Tri Buinguyen are charged with one additional count of distribution of methamphetamine.
Trung Buinguyen and Champy are being sought by law enforcement.
As part of this case, law enforcement seized a total of 755 kilograms (1,664 pounds) of methamphetamine and more than 100 kilograms of cocaine. Law enforcement estimates that the value of the drugs seized exceeds $65 million and ranges up to $160 million.
According to the indictment, from at least February 2017 to September 2022, Le and Tri Buinguyen communicated with members of the drug trafficking organization in Australia, New Zealand, and Papua New Guinea. They then arranged for the export of bulk quantities of drugs from the United States to these nations via air cargo, ocean freight, and the U.S. mail, concealing the drugs in a variety of commercial products and falsifying their true nature on the manifests and customs documents.
The defendants allegedly used phones equipped with military-grade encryption software and encrypted messaging applications, particularly “Signal,” to coordinate the export of drugs from the United States. They also allegedly used fictitious names, businesses, and email accounts to communicate with intermediaries, including vendors, freight forwarders, shipping companies, customs brokers, and customs officials in the United States and foreign countries, to fraudulently disguise the drugs as legitimate commercial products.
For example, Le and Tri Buinguyen allegedly directed the summer 2018 shipment to Australia of 390 kilograms (860 pounds) of methamphetamine concealed in packets of instant noodles and mushroom seasoning, as well as the September 2018 export of 113 kilograms (249 pounds) of methamphetamine and 100 kilograms (over 220 pounds) of cocaine disguised as garlic seasoning. Additional shipments of drugs in October 2018, November 2019, February 2020, and August 2020 were allegedly concealed in emergency kits, car parts, subwoofers, and customized metal boxes.
In June 2021, Le and Tri Buinguyen orchestrated a bulk shipment of 150 kilograms (over 330 pounds) of methamphetamine concealed in food storage buckets for export to Papua New Guinea, according to the indictment. Finally, in August and September of 2022, Tri Buinguyen allegedly arranged for the export to New Zealand of 32 kilograms (more than 70 pounds) of methamphetamine concealed in meals ready-to-eat packets.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, each defendant would face a statutory maximum sentence of life in federal prison.
Homeland Security Investigations is investigating this matter. The following agencies have provided substantial assistance to this investigation: United States Postal Inspection Service, the Drug Enforcement Administration, United States Customs and Border Protection, the Australian Federal Police, the Australian Border Force, the Australian Department of Homeland Affairs – Intelligence Division, the Royal Papua New Guinea Constabulary, the Papua New Guinea Customs Service, and the New Zealand Customs Service.
This case is the result of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Central District of California and HSI. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant United States Attorney Gregg E. Marmaro of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
Four Individuals Indicted in Puerto Rico Department of Treasury Bribery Conspiracy Related to Vehicle Excise TaxesRead the Press Release
SAN JUAN, P.R. – On December 14, 2023, the Federal Grand Jury in the District of Puerto Rico returned a 20-count indictment charging four individuals with Conspiracy to Commit Bribery Concerning Program Receiving Federal Funds, Paying and Receiving Bribes, and Honest Services Wire Fraud , announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. The case was investigated by the Federal Bureau of Investigation (FBI) and the Department of Homeland Security (HSI) with the assistance of the Puerto Rico Department of Treasury (Hacienda), the Puerto Rico Police Bureau (PRPB), and the Puerto Rico Department of Corrections and Rehabilitation.
Throughout 2020 and 2021, defendant Ariel Pintado-Montalvo made repeated bribe payments to Hacienda employees in exchange for the approval of fraudulent vehicle excise-tax Declarations and for quick approval of non-fraudulent vehicle excise-tax Declarations. During the span of the conspiracy, Pintado-Montalvo paid thousands of dollars in bribe payments to Antonio Silva-Rodríguez, Héctor Vázquez-Barroso, and Doris Bonilla-Valle, who each utilized their position as employees of Hacienda to approve fraudulent and non-fraudulent vehicle excise-tax Declarations in exchange for bribe payments.
The Sistema Unificado de Rentas Internas (SURI) was Hacienda’s digital platform which was used to administer and collect vehicle excise-taxes on imported vehicles. Entry documents notifying the vehicle’s arrival, known as the Declaration, which contained the vehicle-identification number (VIN), were required. If the Declaration was complete and it contained the motor vehicle’s correct VIN, SURI would automatically calculate the excise tax based on the current Black Book value of the motor vehicle. Once the excise-tax was approved by Hacienda employees and paid, the vehicle would be released, and it would be free to move from the port. If the VIN was inputted incorrectly into SURI, whoever was completing the Declaration would be able to input what they believed to be the fair-market value of the vehicle. This situation triggered the requirement that a PRDT employee review the Declaration to ensure the correct amount of excise tax was collected.
According to court documents, defendant Ariel Pintado-Montalvo, who was in the business of importing motor vehicles into Puerto Rico as a “gestor” (someone who did the paperwork and helped managed part of the process of importing motor vehicles into PR), paid cash bribes and ATH Móvil payments to Hacienda employees. In exchange for the bribes, Antonio Silva-Rodríguez, Héctor Vázquez-Barroso, and Doris Bonilla-Valle approved fraudulent Declarations that resulted in a decrease in excise tax paid by Pintado-Montalvo and a loss of revenue for Hacienda. Additionally, in exchange for bribe payments, Silva-Rodríguez, Vázquez-Barroso, and Bonilla-Valle used their Hacienda positions to quickly approve non-fraudulent Declarations.
With regards to the fraudulent Declarations, these Hacienda employees agreed that an incorrect VIN number would be imputed into SURI to trigger the review of the Declaration. Then, Pintado-Montalvo would notify one of co-defendants at Hacienda when a fraudulent Declaration was ready for approval by providing the Declaration’s number via WhatsApp. Soon after, Silva-Rodríguez, Vázquez-Barroso, or Bonilla-Valle approved the fraudulent Declaration and notified Pintado-Montalvo via WhatsApp.
Likewise, Pintado-Montalvo sent the number for the non-fraudulent Declaration that needed quick approval via WhatsApp. Silva-Rodríguez, Vázquez-Barroso, or Bonilla-Valle then notified Pintado-Montalvo when it was approved. Pintado-Montalvo would then proceed to coordinate and make the bribe payments in cash or via ATH Móvil in batches.
“Together with our law enforcement partners, our office will continue to aggressively pursue corrupt individuals in the government who take advantage of the system to benefit a few in exchange for bribes,” said U.S. Attorney W. Stephen Muldrow. “This prosecution serves as a warning to other public employees involved in these types of schemes that they will be investigated and prosecuted, and that such violations will not be tolerated.”
“Corruption is a complex problem with a variety of causes and no simple solution. This is why attacking this threat at all levels and having a zero-tolerance posture is necessary in order to have a real impact,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “The FBI has been at the frontlines in the fight against corruption in Puerto Rico and I think the message is clear - if you are a public official, using your public office for personal gain, we will come after you and you will face Justice. I thank our partners at the US Attorney’s Office, HSI, the Puerto Rico Treasury Department (Hacienda), for their continued support to the FBI mission.”
“The defendants in this case used their position of trust as government employees to develop a scheme impacting Puerto Rico’s economy,” said Rebecca González-Ramos, Special Agent in Charge of the Department of Homeland Security, San Juan. “Money that goes directly to our citizens for enhancements in our island, to our public servers, our schools, and our roads, were not collected in exchange for personal gain. These employees defrauded the trust of the people of Puerto Rico. HSI will continue to investigate the financial crimes that negatively impact the infrastructure of the United States and its territories, most importantly those that abuse their position to commit these crimes.”
“Today’s arrests are in part, the culmination of a collaborative effort between the FBI and the Puerto Rico Treasury Department,” said Francisco Parés-Alicea, Secretary of the Puerto Rico Department of Treasury (Hacienda). “In 2021 I shared data identified through our new information systems regarding potential fraud in the introduction of vehicles in the island. Although this incident is very unfortunate, we reiterate our unwavering commitment in fighting these reprehensible acts regardless of where they come from.”
Assistant U.S. Attorney Victor O. Acevedo-Hernández is prosecuting the case.
The indictments contain only charges and are not evidence of guilt. The defendants are presumed to be innocent unless and until proven guilty.
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Former Owner of Plymouth Restaurant Sentenced for Tax EvasionRead the Press Release
BOSTON – The former owner of a beachfront restaurant and bar in Plymouth was sentenced today for concealing business income from the Internal Revenue Service (IRS) and paying restaurant employees under the table.
Rudolph Ferrucci, 66, of Plymouth, was sentenced by U.S. District Court Judge Angel Kelley to two years’ probation, with the first six months to be served on home confinement, 400 hours of community service and a fine of $5,500. On Aug. 23, 2023, Ferrucci pleaded guilty to one count of tax evasion and one count of failure to collect and pay over employee taxes.
Ferrucci owned and operated Sandy’s, a seasonal, cash-only restaurant and bar. From 2016 through 2020, Ferrucci diverted a portion of Sandy’s sales receipts for cash payments to suppliers and employees and to personal income for himself and his spouse. Ferrucci kept separate sets of financial records for Sandy’s, including one omitting diverted sales receipts, which Ferrucci’s tax return preparer used to report Sandy’s income to the IRS. As a result, Ferrucci underreported his and his spouse’s personal income tax obligations by $1.2 million over those four years, causing a loss to the IRS of over $250,000.
Additionally, Ferrucci paid Sandy’s employees more than $315,000 in cash wages, memorialized in a handwritten “second set of books” and not recorded in Sandy’s payroll records or tax returns. By not reporting these cash wages to the IRS, Ferrucci caused Sandy’s to fail to pay $75,000 in employment taxes owed to the IRS.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Former L.A. Resident Sentenced to More Than 6 Years in Prison for Running Cons Targeting Members of Orthodox Jewish CommunityRead the Press Release
LOS ANGELES – A former resident of the Fairfax District of Los Angeles was sentenced today to 80 months in federal prison for defrauding investors, primarily members of the Orthodox Jewish community, by getting them to invest $25 million in his security camera business and his purported real estate ventures in Israel, while actually using their money for his own expenses.
Yossi Engel, 36, who moved to Israel in March 2021 but temporarily returned to the Los Angeles area in February 2023, was sentenced by United States District Judge Maame Ewusi-Mensah Frimpong, who also ordered him to pay $11,758,030 in restitution.
Engel pleaded guilty on May 12 to one count of wire fraud. He has been in federal custody since his arrest on March 8 at Los Angeles International Airport as he was attempting to leave the United States.
Engel orchestrated a scheme in which he made false representations and used forged documents to induce victims to make investments in and provide loans for iWitness Tech Inc., a Hancock Park-based security camera company and for properties Engel falsely claimed to own and be developing in Israel.
From September 2018 to January 2021, Engel used his community relationships to defraud victims, who primarily came from the Orthodox Jewish communities in the Los Angeles and New York metropolitan areas. Engel claimed to need money in the form of short-term loans with high rates of return for iWitness’ business operations, namely the purported purchase and installation of security cameras for its customers.
Engel offered short-term investments and loans in iWitness that ranged from $15,000 to $1.3 million. The investments and loans were for two weeks to six months and would purportedly provide investors with 10% to 60% annualized interest. Victims were duped, in part, by being shown copies of false and fraudulent invoices of work iWitness purportedly did with other companies.
Engel told victims that iWitness was a large business with many clients, but in fact it did not have as much business as he claimed, and work was so slack that at times iWitness employees sat around waiting for work while Engel slept on a couch.
In another part of the scheme, Engel also falsely claimed to own and be developing real estate in Israel, telling victims that he needed money for redevelopment work, and falsely promising he would sell the properties and share the profits with investors. Engel showed victims a video depicting himself socializing with the mayor of Bnei Brak, Israel, and claimed to have met with the mayor concerning Engel’s purported real estate deals in the city. But Engel did not have a close relationship with the mayor, and he did not discuss with the mayor these real estate ventures in the city.
Engel used fraudulent Israel land documents to dupe victims into thinking he owned these properties. Through these fake documents and his own trusted position in the Orthodox Jewish community, Engel lulled existing victims and encouraged new victims to send him money.
Engel lied to investors that he needed private investments for both iWitness and the Israeli real estate projects because he was from Israel and did not have sufficient credit in the United States to obtain the lower interest rates available through U.S. banks.
But Engel did not use the victims’ money as promised, and instead used it for his personal expenses – including trips via private jets and casino visits – and to make Ponzi payments to investors to perpetuate the scheme.
Once the scheme fell apart in early 2021, Engel fled the United States for Israel.
“The consequences of [Engel’s] dishonesty are not only financial but his victims endured an emotional cost,” prosecutors argued in a sentencing memorandum. “[Engel’s] greed hurt reputations and broke relationships in the communities he solicited money.”
In January 2023, the United States Securities and Exchange Commission sued Engel, alleging he used his ties in the Orthodox Jewish community to perpetuate a multimillion-dollar affinity fraud.
The FBI investigated this matter.
Assistant United States Attorney Steven M. Arkow of the Major Frauds Section prosecuted this case.
Former Huntingdon County Postal Employee Sentenced to Probation for Mail TheftRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 14, 2023, Adam Fouse, age 30, of Huntingdon County, Pennsylvania, was sentenced by United States District Court Judge Yvette Kane to one year of probation, including 30 days on home confinement, for stealing mail while employed as a U.S. Postal Service employee. Judge Kane also ordered Fouse to pay $1,200 in fines and assessments.
According to United States Attorney Gerard M. Karam, Fouse previously pleaded guilty to theft of mail by a postal employee. Fouse opened gift cards and other mail that had been entrusted to him as a rural carrier associate and stealing money from that mail to help finance a sports gambling addiction. Fouse agreed to resign from the Postal Service and not to seek or accept a position of public trust for a period of 10 years.
The matter was investigated by the United States Postal Inspection Service. Assistant United States Attorney Christian T. Haugsby prosecuted the case.
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Former Edinboro Resident Sentenced to 5 Years in Prison for Receipt and Possession of Child Sexual Abuse MaterialRead the Press Release
ERIE, PA - A former resident of Edinboro, Pennsylvania, has been sentenced in federal court to 5 years in prison, to be followed by 10 years of supervised release, and ordered to pay a special assessment of $5,100 on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on James Paredes Andrada, age 25.
According to information presented to the court, from November 2019 to February 2020, Andrada received and possessed computer and cell phone images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Edinboro Police Department for the investigation leading to the successful prosecution of Andrada.
Federal grand jury indicts Dunkirk man on labor and sex trafficking and kidnapping chargesRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a four-count indictment charging Augusto Mateo Francisco, 32, of Dunkirk, NY, with two counts of forced labor, one count of kidnapping a minor, and one count of transportation of a minor for the purpose of illegal sexual activity. The charges carry a minimum penalty of 20 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Douglas A. C. Penrose, who is handling the case, stated that according to the indictment, Francisco facilitated the illegal entry of Guatemalan migrants into the United States and helped transport them to the Dunkirk area, where he would provide them with housing and work at area farms. Francisco would charge the migrants for their housing, rides to work, and for other items. He would also take a cut of the wages they earned working at the farms. Francisco threatened two individuals (Victim 1 and Victim 2), telling them that if they stopped working for him or if they did not pay back the money they purportedly owed to him, he would harm their families or would call immigration authorities and have them deported.
In addition, Francisco pursued a sexual relationship with Minor Victim 1, a 16-year-old Guatemalan migrant who had come to the U.S. with her mother. Francisco repeatedly raped Minor Victim 1, threatening to harm her siblings who were still in Guatemala if she told anyone about what had happened. In May 2020, Francisco abducted Minor Victim 1 and took her to a trailer in Ripley, NY, where she was held for nearly two weeks, until being rescued by police. Following her rescue, Minor Victim 1 and her mother fled to Georgia to escape Francisco. However, he followed them and kidnapped Minor Victim 1, bringing her back to the Western District of New York, where he unlawfully held her for several more days, until she was again rescued by police.
Francisco was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy, and is being held pending a detention hearing on December 20, 2023, at 2:30 p.m.
The indictment is the result of by Homeland Security investigations, under the direction of Special Agent-in-Charge Matthew Scarpino and the Chautauqua County Sherriff’s Office, under the direction of Sheriff James Quattrone.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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