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1 February 2024
Federal Inmate Pleads Guilty to Assaulting a Federal Corrections Officer at the Federal Transfer Center in Oklahoma CityRead the Press Release
OKLAHOMA CITY – Today, REYES LUIS HOLGUIN, 31, of Phoenix, Arizona, pleaded guilty to assaulting a federal officer, announced U.S. Attorney Robert J. Troester.
On November 7, 2023, a federal grand jury charged Holguin with assault on a federal officer or employee involving physical contact. According to public record, in August 2023 Holguin was a temporary inmate at the Federal Transfer Center in Oklahoma City when he assaulted a federal corrections officer.
At a change of plea hearing today, Holguin pleaded guilty to physically assaulting a federal corrections officer, after Holguin had entered the office of a corrections officer without permission.
At sentencing, Holguin faces up to eight years in federal prison and a fine of up to $250,000.00.
This case is the result of an investigation by the Bureau of Prisons Special Investigative Services. Assistant U.S. Attorney Bow Bottomly is prosecuting the case.
Reference is made to public filings for additional information.
Fall River Police Officer Found Guilty of Assaulting Man in CustodyRead the Press Release
BOSTON – A Fall River Police Officer was convicted today following a four-day jury trial of assaulting a man in custody with a baton and failing to report the assault in subsequent reports.
Nicholas M. Hoar, 37, was convicted of on one count of deprivation of rights under color of law and two counts of false reports. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for April 24, 2024. Hoar was arrested and charged in November 2022.
“Police officers who abuse their power will continue to be held accountable by this office,” said Acting United States Attorney Joshua S. Levy. “This office has a huge amount of respect for the thousands of men and women in law enforcement who conduct their jobs with high integrity and put their lives at risk every day. The defendant’s conduct and lack of moral compass is an affront to all those members of law enforcement who serve with honor.”
“What Fall River Police Officer Nicholas Hoar did – in using his position of authority to assault a man in his custody and then try to cover it up by filing false reports– is utterly contemptible,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “We in law enforcement are granted significant authority in order to effectively do our jobs, and when a police officer abuses those powers and deprives another human being of their civil rights, the FBI and our partners will ensure they are brought to justice for egregiously violating the public’s trust.”
On Dec. 21, 2020, while on duty as an officer with the Fall River Police Department, Hoar struck an individual who had been arrested in the forehead with a baton, resulting in bodily injury to the arrestee. Additionally, on Dec. 21 and Dec. 22, 2020, Hoar submitted two reports which omitted any mention of the fact that he had struck the arrestee in the forehead with a baton.
The charge of deprivation of rights under color of law resulting in bodily injury provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of false reports provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and John J. Reynolds III of the Criminal Division are prosecuting the case.
FCI Schuylkill Inmate Sentenced to Six Months in Prison for Possession of A WeaponRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tyrell Lockhart, age 26, a federal inmate incarcerated at FCI Schuylkill, was sentenced to six months’ imprisonment by United States District Court Judge Malachy E. Mannion, for his of possession of contraband in prison.
According to United States Attorney Gerard M. Karam, in July of 2023, a corrections officer observed inmate Lockhart in his cell where, pursuant to a search, the officer discovered that Lockhart was concealing a homemade knife, commonly referred to as a “shank.”
The case was investigated by the Federal Bureau of Investigations and the Special Investigative Services of the Federal Bureau of Prisons. Assistant U.S. Attorney Luisa Honora Berti is prosecuting the case.
The maximum penalty under federal law for this offense is up to 5 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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El Paso Fentanyl Dealer Sentenced to More Than 10 Years in PrisonRead the Press Release
EL PASO, Texas – An El Paso man was sentenced in a federal court in El Paso to 130 months in prison for possession with intent to distribute fentanyl.
According to court documents, Gary Everett Rinker, 56, sold approximately 200 pills containing 19.8 grams of fentanyl to a buyer at an El Paso hotel. The criminal complaint filed July 12, 2023 alleged that over a separate three-day period Rinker sold quantities of counterfeit Oxycodone Hydrochloride 30 mg tablets to the buyer, totaling approximately 55 grams of fentanyl.
Rinker was arrested in July 2023 and pleaded guilty Nov. 1, 2023.
“This defendant was a prominent fentanyl dealer in the El Paso community who will spend the next decade off our streets, largely due to his extensive drug-related criminal history dating back to 2007,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I commend the joint efforts of our partners at FBI and the Drug Enforcement Administration, as well as the dedicated attorneys of the Western District who continue to aggressively prosecute these offenders.”
“Fentanyl continues to be a considerable threat to our communities, ending the lives of our neighbors, friends and loved ones who, in many cases, aren’t even aware they’re taking the drug,” said Special Agent in Charge John Morales for the FBI El Paso Field Office. “FBI El Paso and our Drug Enforcement Administration partners are working together will come after anyone supplying poison to innocent lives and bring them to justice.”
“Our Fentanyl Overdose Response Team (FORT) does not just investigate fatalities caused by fentanyl,” said Towanda Thorne-James, Special Agent in Charge of the DEA’s El Paso Division. “By putting Mr. Rinker behind bars, FORT worked proactively to potentially save lives. Rinker was not the first fentanyl dealer targeted by our FORT, and he won’t be the last.”
The FBI and DEA investigated the case.
Assistant U.S. Attorney Richard Watts prosecuted the case.
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Cumberland County Man Charged with Child Pornography OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Timothy Laird Boatman, age 39, of Mechanicsburg, Pennsylvania was indicted yesterday by a federal grand jury with child pornography offenses.
According to U.S. Attorney Gerard M. Karam, the indictment charges Boatman with multiple counts of sexually exploiting children to produce child pornography and coercing and enticing children to do the same. The offenses occurred between March 1, 2023 and July 1, 2023, in Cumberland County.
The case was investigated by Homeland Security Investigations. Assistant U.S. Attorney K. Wesley Mishoe prosecuted the case.
The 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, 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.
The maximum penalty upon conviction for the charged offenses is life imprisonment, a lifetime term of supervised release following imprisonment, a fine, a statutory assessment, and a special assessment. A sentence following a finding of guilt is imposed by a judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Convicted drug trafficker sentenced for illegally re-entering country after seven prior removalsRead the Press Release
LAREDO, Texas – A 43-year-old Mexican man has been sentenced following another conviction for illegally re-entering the United States, announced U.S. Attorney Alamdar S. Hamdani.
Gabino Escamilla pleaded guilty Nov. 8, 2023.
U.S. District Judge Micaela Alvarez has now ordered Escamilla to serve 40 months in federal prison. Not a U.S. citizen, Escamilla is again expected to face removal proceedings following his imprisonment. At the hearing, the court heard about Escamilla’s conviction in 2016 for conspiracy to distribute more than five kilograms of cocaine in Columbus, Ohio. Escamilla had already been removed from the United States six times prior to his conviction for drug trafficking.
On Aug. 30, 2023, law enforcement encountered Escamilla near Laredo. Escamilla was first ordered removed Jan. 25, 2010, and has subsequently been removed by authorities seven times from 2010 to 2019.
Escamilla will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation. Special Assistant U.S. Attorney Terence A. Check Jr. prosecuted the case.
Convicted Felon Sentenced to 46 Months in Prison for Possession of A FirearmRead the Press Release
Orlando, FL – U.S. District Judge Wendy W. Berger has sentenced Desha Cooper (32, Ocoee) to 3 years and 10 months in federal prison for possessing a firearm as a previously convicted felon. Cooper entered a guilty plea on October 24, 2023.
According to court records, on the night of February 3, 2023, an officer from the Orlando Police Department conducted a traffic stop of a vehicle that Cooper was driving. The officer observed a loaded firearm on the driver’s side floorboard of the vehicle, and Cooper fled on foot. The United States Marshals Service later located and arrested Cooper. At the time of his arrest, Cooper, a previously convicted felon, was in possession of a second loaded firearm. As a convicted felon who previously served time in federal prison for a firearm offense, Cooper is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation with valuable assistance from the Orlando Police Department and the United States Marshals Service. It was prosecuted by Assistant United States Attorney Richard Varadan.
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.
Convicted Felon Indicted for Possession of Firearm and Ammunition in Connection with St. Petersburg ShootingRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces the return of an indictment charging Daniel Gonzalez (23, St. Petersburg) with possessing a firearm and ammunition as a convicted felon. If convicted, Gonzalez faces up to 15 years in federal prison.
According to court proceedings, the charges arise from a January 1, 2023, shooting in a St. Peterburg parking garage during which a 16-year-old was shot. After the shooting, responding officers from the St. Petersburg Police Department observed a vehicle fleeing the parking garage. The officers followed the vehicle for a short period of time until the pursuit was terminated due to weather conditions. Soon after, a Springfield Armory Hellcat 9mm pistol was found in the road where officers had observed the vehicle fleeing. The firearm was swabbed for DNA and Gonzalez’s DNA was found on two different parts of the firearm.
At the time, Gonzalez had a prior felony conviction for sale or delivery of a controlled substance. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It will be prosecuted by Assistant United States Attorney Samantha Newman.
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.
Cleveland Area Brothers Indicted for Fraud and Money Laundering SchemesRead the Press Release
CLEVELAND – Rebecca C. Lutzko, United States Attorney for the Northern District of Ohio announced today that a federal grand jury sitting in Cleveland returned a twenty-two count indictment charging two Cleveland area brothers with multiple fraud and money laundering schemes.
Zubair Mehmet Abdur Razzaq Al Zubair, 41, recently of Bratenahl, Ohio, and his brother Muzzammil Muhammad Al Zubair, 30, recently of Pepper Pike, Ohio, face one count of conspiracy to commit wire fraud, 14 counts of wire fraud, one count of conspiracy to engage in money laundering, four counts of money laundering, and one count of theft of government funds. Zubair Al Zubair also faces one count of harboring a fugitive.
The indictment charges that from June 2020 through August 2023, the Al Zubair brothers engaged in multiple schemes, including an investment fraud scheme, a Small Business Administration COVID-19 relief Emergency Income Disaster Loan scheme, a cryptocurrency mining scheme, a commercial real estate lease scheme, and a residential real estate lease scheme. According to the facts alleged in the indictment, the Al Zubair brothers obtained funds and property from victims under false pretenses and spent the proceeds on luxury items, such as cars, travel, entertainment, firearms, and jewelry. They allegedly falsely claimed to have extraordinary wealth and government connections. Zubair Al Zubair also allegedly falsely claimed to be married to a princess and to be a member of a royal family in the United Arab Emirates. The defendants also allegedly made false claims about potential investments returns, about property they owned or controlled, and about their intentions, among other falsehoods alleged in the indictment. Through these false claims, the Al Zubair brothers allegedly obtained millions of dollars from their victims. In addition to the fraud and money laundering charges, Zubair Al Zubair is also charged with providing a place to stay and transportation to a fugitive wanted on federal criminal charges.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Matthew W. Shepherd.
Charleston Man Sentenced to More than 22 Years in Prison for Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Samuel Pierre Joseph, 41, of Charleston, was sentenced today to 22 years and six months in prison, to be followed by five years of supervised release, for possession with intent to distribute 50 grams or more of a mixture containing methamphetamine, possession of firearms in furtherance of a drug trafficking crime, being a felon in possession of a firearm, possession with intent to distribute 50 grams or more of methamphetamine and a quantity of fentanyl, and possession with intent to distribute 500 grams or more of a mixture containing methamphetamine and 40 grams or more of a mixture containing fentanyl.
A federal jury found Joseph guilty on July 11, 2023, following a two-day trial. Evidence at trial proved that on December 27, 2021, law enforcement officers encountered Joseph as he left his room at the Knights Inn on MacCorkle Avenue in Charleston. Joseph dropped a black duffel bag he was carrying and attempted to flee. Officers apprehended Joseph and found approximately 267 grams of methamphetamine, a Smith & Wesson Model Bodyguard .380-caliber semi-automatic pistol, a Ruger model LC9s 9mm semi-automatic pistol and drug paraphernalia in the duffel bag. Officers also found $1,355 on Joseph’s person.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Joseph knew he was prohibited from possessing a firearm because of his prior felony conviction for possession of marijuana, fourth offense, in the Second Judicial District Court for the Parish of Bienville, Louisiana, on April 14, 2015.
On March 17, 2022, Joseph was a passenger of a vehicle pulled over by law enforcement officers in a Dudley Avenue parking lot in Parkersburg. During the traffic stop, officers found approximately 152 grams of methamphetamine and 12.9 grams of a mixture containing fentanyl and heroin on Joseph’s person. Officers arrested Joseph and took him to the Parkersburg Police Department. While at the police department, Joseph attempted to dispose of a business card from a Charleston storage unit rental facility that included the number of a storage unit that Joseph rented at the facility. Officers recovered the card and obtained a search warrant for the rented storage unit. Officers found approximately 896.8 grams of methamphetamine and 83.6 grams of fentanyl in the rented storage unit when they executed the search warrant.
“This defendant has a criminal history that includes 15 prior convictions and was not deterred by his December 2021 arrest as the subsequent traffic stop demonstrates,” said United States Attorney Will Thompson. “Today’s sentence reflects not only his persistent criminal conduct, but also the dedication and teamwork of the law enforcement officers who brought him to justice.”
Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT) and the Parkersburg Police Department, and the assistance provided by the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Charleston Police Department.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorneys Jeremy B. Wolfe and Troy D. Adams prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-93.
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Cedar Rapids Contractor Pleads Guilty to Wire FraudRead the Press Release
A Cedar Rapids contractor who scammed victims of the 2020 Iowa derecho pled guilty today in federal court in Cedar Rapids, Iowa. Scott Gregory Adkins, age 48, who did business as “Adkins Home Improvements LLC,” was convicted of one count of wire fraud.
On August 10, 2020, a severe storm, commonly referred to as a derecho, struck multiple counties in the Northern District of Iowa, as well as other parts of the States of Iowa, Illinois, and Indiana. Media reporting on the event, citing public and private sources, have estimated that the derecho, with winds exceeding 100 mph, caused an estimated total of $7.5 billion in damage across the affected states. The derecho caused long-duration power outages across the Northern District of Iowa and the larger region, millions of acres of crops were damaged or destroyed, and numerous semi-trucks were blown off major interstate highways. Just within the city of Cedar Rapids, power was cut to nearly all of the city’s residents by the derecho, and damage estimates indicate that over 1,000 housing units were rendered unlivable while hundreds of additional homes suffered damage. Many of the city’s businesses were also damaged during the storm.
In a plea agreement, Adkins admitted that, from December 2020, through March 2022, he devised and perpetrated a scheme to defraud his customers, including victims of the 2020 Iowa derecho. Adkins organized “Adkins Home Improvements LLC” in October 2020, approximately two months after the derecho. By means of “Adkins Home Improvements LLC,” Adkins offered home repair services to victims of the derecho, as well as other individuals in the Cedar Rapids area who needed projects completed in the tight-labor, post-derecho construction market.
As a part of his scheme, Adkins offered to provide construction services and materials to prospective customers of “Adkins Home Improvements LLC,” including but not limited to victims of the derecho. Adkins provided estimates to those customers and demanded substantial advance deposits or downpayments before undertaking work on the projects. Instead of completing the projects, Adkins spent some of the advanced funds on personal expenses, including but not limited to food, and transferred other such funds to a family member by means of a mobile payment service. Adkins also made false statements and excuses to his customers about the status of their projects to conceal his illicit use of the funds and to lull his customers into a false sense of security. Adkins stole over $150,000 as part of his scheme, and one of his victims was an elderly widow who suffered roof damage to her Cedar Rapids residence from the derecho.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Adkins remains in custody of the United States Marshal pending sentencing. Adkins faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-66.
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Canadian Man Pleads Guilty to Role in Scheme that Manipulated Penny Stock Prices and Cost Hedge Fund Investors More Than $215 MillionRead the Press Release
LOS ANGELES – A trader for a group of hedge funds pleaded guilty this afternoon to participating in a scheme that manipulated penny stock prices to inflate the hedge fund’s reported profits – fraudulent gains that generated millions of dollars in management and performance fees – and caused investors to lose more than $215 million when the funds collapsed.
Colin Heatherington, 49, of Vancouver, Canada, pleaded guilty to one count of conspiring to commit securities fraud and wire fraud and admitted his role in the scheme run out of Absolute Capital Management Holdings (Absolute Funds), a Cayman Island-based company that managed eight hedge funds from offices in Mallorca, Spain.
Heatherington was a securities trader who worked closely with the founder and chief investment officer of Absolute Funds, Florian Wilhelm Jürgen Homm, 64, a German financier who was indicted in March 2013 and is currently a fugitive from justice.
As part of the scheme, Heatherington oversaw the purchase of billions of shares of United States-based penny stocks, which were then traded using various manipulative practices, such as cross trading, which fraudulently inflated the value of the stocks and, in turn, the value of the Absolute Funds.
Heatherington and others in the scheme also reaped profits through self-dealing trades in which they sold their own shares of artificially inflated penny stocks to the Absolute Funds.
After this case was indicted, Heatherington was in Canada, and the United States sought his extradition. After fighting extradition, Heatherington agreed last year to come to the United States.
Another defendant in this case – Todd Michael Ficeto, 57, a former Beverly Hills stockbroker – was sentenced to six years in federal prison after being convicted of 18 felonies relating to his managerial role in the scheme to manipulate penny stock prices, which garnered him many millions of dollars from fees and commissions and self-dealing trades. Ficeto also allowed members of the conspiracy to trade the manipulated penny stocks through his company, among other fraudulent acts.
Heatherington pleaded guilty before United States District Judge John A. Kronstadt, who scheduled a sentencing hearing for May 9, at which time, Heatherington will face a statutory maximum sentence of 25 years in federal prison.
The FBI investigated this matter. The Department of Justice’s Criminal Division’s Office of International Affairs, IRS Criminal Investigation, the United States Securities and Exchange Commission, and the Financial Industry Regulatory Authority (FINRA) provided assistance.
Assistant United States Attorneys Cassie D. Palmer of the Public Corruption and Civil Rights Section, Scott Paetty of the Major Frauds Section, and Ian V. Yanniello of the General Crimes Section are prosecuting this case.
California Drug Trafficker Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Fontana, California man was sentenced to federal prison Wednesday for his role in a local drug distribution ring responsible for trafficking large quantities of illegal narcotics from Mexico into the Portland metro area for redistribution and sale.
Javier Sarabia, 28, was sentenced to 151 months in federal prison and five years’ supervised release.
According to court documents, beginning in April 2019, special agents from the U.S. Drug Enforcement Administration (DEA) and other law enforcement agencies began investigating a drug trafficking organization operating in Portland and Vancouver, Washington. On April 22, 2019, investigators stopped a vehicle traveling north on Interstate 5 toward Portland. An initial search of the vehicle returned $23,000 in cash and what appeared to be hand-written drug ledgers. Later, while conducting a full search of the vehicles, investigators found two after-market compartments under the vehicle’s front seats concealing 100 pounds of crystal methamphetamine and eight pounds of heroin.
Further investigation revealed that the driver of the seized vehicle had recently communicated with Sarabia who served as a drug load coordinator, stash house operator, courier, and sub-distributor for the trafficking organization. It was later determined that Sarabia himself had arranged for the drugs to be loaded into the seized vehicle.
One month later, on May 28, 2019, as part of an unrelated law enforcement operation, police in Chino, California stopped Sarabia in a vehicle that was found to contain approximately ten pounds of methamphetamine. Sarabia confessed to his involvement in the drug trafficking organization and admitted to personally loading the drugs into the vehicle stopped and seized in Oregon.
On August 14, 2019, a federal grand jury in Portland returned a five-count indictment charging Sarabia and eleven others with conspiracy to possess with intent to distribute and distribute controlled substances, use a communication facility, and maintain drug-involved premises, and other related charges. On October 18, 2023, Sarabia pleaded guilty to the conspiracy charge.
Sarabia is the eleventh person in the conspiracy to be sentenced. The twelfth and final defendant is a fugitive.
This case was investigated by DEA with assistance from the Tigard Police Department. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Bristol Man Sentenced for Defrauding Consumers by Interstate WireRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that David Conrad, 42, of Bristol, Vermont was sentenced on January 30, 2024 to a 5-year term of probation, following his guilty plea to conducting a wire fraud scheme between approximately January of 2022 and February 28, 2023. United States District Judge Christina Reiss also ordered Conrad to pay $58,430.52 in restitution to 43 victims, and to forfeit $58,430.52 of fraudulently obtained proceeds to the United States.
According to court records, David Conrad operated a custom woodworking business under the names “Old Camp Woodworking” and “Vermont Custom Designs.” Conrad was the sole employee of the business, which he ran out of the two-car garage attached to his residence in Bristol, Vermont. Conrad advertised his businesses on Facebook, and had stand-alone websites which allowed customers to place orders for custom wood items, such as dining tables, dressers, bedroom sets, desks, and other items. Parts of these websites were plagiarized from other woodworking websites, and some of the photographs on the websites were not original photographs of custom pieces crafted by Conrad, but rather copies of photographs from elsewhere on the internet. Conrad’s websites displayed strict cancelation and refund policies, listing a 25% processing fee for orders canceled within 24 hours; a 75% processing fee for orders canceled within 30 days; and no refunds for orders canceled after 30 days.
Between January 2022 and February 2023, Conrad accepted approximately $165,500 through various payment methods for over 100 different items ordered by customers in Vermont, New York, and New Hampshire. As part of the scheme to defraud, Conrad accepted payment for items he knew he could not complete within the 12-to-16-week timeframe he quoted customers. Conrad made numerous false statements to customers regarding the status of their orders and regarding why orders had not been completed (including false claims of having had a heart attack and cutting off a portion of his finger). Conrad used his strict refund policy as a reason to retain funds from customers, despite not having begun work on their orders. Conrad used funds obtained from customers to pay for his and his family’s personal expenses, while knowing that he would be unable to complete the custom-made wood item ordered by the customer.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of Homeland Security Investigations, and thanks the Vermont Attorney General’s Consumer Assistance Program for its assistance in compiling consumer complaints and their collaborative work on the investigation.
The prosecutor was Assistant United States Attorney Jonathan A. Ophardt. Conrad was represented by Chandler Matson, Esq.
Boston Man Pleads Guilty to Unlawful Trafficking of Machinegun Conversion DevicesRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to illegally selling a dozen machinegun conversion devices.
Michael Wilkerson, 23, pleaded guilty to one count of engaging in the business as a manufacturer or dealer in firearms. U.S. District Court Judge Denise J. Casper scheduled sentencing for April 30, 2024. Wilkerson was initially arrested and charged along with co-defendant Elijah Navarro in February 2023. The defendants were subsequently indicted by a federal grand jury in March 2023.
In January 2023, Navarro agreed to sell 12 machinegun conversion devices to an individual in exchange for $1,700. Following a series of communications, Navarro met the individual twice at a pre-arranged location. On Jan. 19, 2023, Navarro sold the first two machinegun conversion devices for $400 and later, on Jan. 25, 2023, Navarro sold the remaining 10 devices for an additional $1,300 out of Wilkerson’s residence.
During a search of Wilkerson’s residence in February 2023, two 3-D printers, 3-D printing material, machinegun conversion devices, a ballistic vest as well as firearms, ammunition and magazines were seized.
Neither Navarro nor Wilkerson possess licenses to import, manufacture, deal or possess firearms.
Navarro pleaded guilty to his role in the conspiracy in December 2023. He is scheduled to be sentenced on March 13, 2024.
The charge of engaging in the business as a manufacturer or dealer in firearms provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $10,000. The charge of unlawful transferring or possession of a machinegun provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner Michael A. Cox made the announcement today. Assistant U.S. Attorney John T. Dawley of the Organized Crime & Gang Unit is prosecuting the case.
Boone County Man Sentenced to 136 Months for Methamphetamine TraffickingRead the Press Release
COVINGTON, Ky. – A Union, Ky., man, Paul Marcus Sitavich, 42, was sentenced on Thursday, to 136 months in federal prison, by U.S. District Judge David Bunning, for possession with the intent to distribute 50 grams or more of methamphetamine.
According to his plea agreement, in January 2023, Sitavich sold approximately 3.495 grams of methamphetamine to an informant, which was observed by law enforcement. Then, on February 14, 2023, law enforcement conducted a traffic stop on a vehicle driven by Sitavich. After a drug dog indicated that narcotics were present, law enforcement searched the vehicle and found approximately 58.1 grams of pure methamphetamine, as well as a digital scale, empty bags, and other drug trafficking paraphernalia. Sitavich later admitted to selling controlled substances to make money, during a recorded video visit while in the Boone County Jail.
Under federal law, Sitavich must serve 85 percent of his prison sentence. Upon his release from prison, 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; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Chief Tom Grau, Florence Police Department, jointly announced the sentence.
The investigation was conducted by the DEA and the Florence Police Department. Assistant U.S. Attorney Tony Bracke is prosecuting the case on behalf of the United States.
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Baltimore County Serial Fraudster Sentenced to Five Years in Federal Prison and Ordered to Pay $4.2 Million in RestitutionRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Adeyanju Adewale, age 40, of Reisterstown, Maryland, to five years in federal prison, followed by one year of home detention as part of three years of supervised release, for a wire fraud conspiracy that resulted in a loss of millions of dollars to Medicaid, businesses, law firms, financial institutions, individuals, and to the state and federal governments. Judge Bennett also ordered that Adewale must pay restitution of $4,258,587.03.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Special Agent in Charge Karen L. Brown Cleveland of the U.S. Department of State’s Diplomatic Security Service (“DSS”) – Washington Field Office; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; and Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (“HHS-OIG”).
According to his plea agreement, between 2018 and 2022 Adewale coordinated a series of frauds with various co-conspirators. Adewale assisted co-conspirators to obtain fraudulent identification documents that were used to perpetrate the fraud. Co-conspirators created shell companies and used shell company names and false, forged and counterfeit identification documents, including passports, to open bank accounts. Adewale obtained the bank information from his co-conspirators and communicated with his foreign conspirators about where the fraud proceeds should be directed. The foreign co-conspirators caused the victims to be misled into sending their money to those accounts. Adewale also served as a go-between with conspirators outside the United States and the U.S.-based bank account holders.
For example, as detailed in the plea agreement, in January 2019, Adewale worked with co-conspirators to fraudulently obtain money through a business email compromise scheme that victimized a business in Virginia that was seeking to disburse settlement funds. The victim business sent more than $400,000 to the bank account of an individual in Maryland who used the funds from the victim to purchase $71,000 and $62,000 cashier’s checks and caused the cashier’s checks to be delivered to an address in Baltimore used by Adewale. Adewale caused checks to be deposited into bank accounts controlled by co-conspirators and provided information about the companies associated with those bank accounts to members of the conspiracy located outside the United States. Adewale shared in the proceeds of the fraud.
During 2020, Adewale also participated in hospital frauds targeting Medicaid. Specifically, Adewale and his co-conspirators obtained money that the Ohio and Colorado Medicaid programs and the state of Ohio, sought to pay hospitals in Ohio and Colorado, including as reimbursement for health care services. As part of the fraud, false information was sent to an Ohio government office and Colorado Medicaid regarding the bank accounts on file for the hospitals. As a result of the fraudulent representations, from July to September 2020, the state of Ohio transferred approximately $3.5 million to a bank account controlled by a co-conspirator. The majority of the funds were quickly removed by the co-conspirator, transferred via check to other accounts. Similarly, in September 2020, fraudulent information was provided to representatives of Colorado Medicaid regarding the bank account on file for the hospital in Colorado. Later that month, Colorado Medicaid sent approximately $610,000 to a bank account controlled by the conspirators. Again, Adewale shared in the proceeds of the fraud schemes.
Adewale admitted that as a result of the fraud schemes the actual fraud losses exceeded $4.2 million, including more than $1 million in actual losses to a federal health benefit program, specifically, Medicaid.
“The Diplomatic Security Service is pleased with the success of this case. This shows the positive outcome when federal agencies work together to stop criminals from exploiting U.S. passports for illegal profit,” said Karen L. Brown Cleveland, Special Agent-in-Charge of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service (DSS). “We’re committed to investigating U.S. business operators who acquire U.S. passports to carry out criminal activities.”
United States Attorney Erek L. Barron and Acting Assistant Attorney General Nicole M. Argentieri praised the DSS, HSI, and HHS-OIG for their work in the investigation and thanked the FBI for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Harry M. Gruber and Tamera Fine and Justice Department Trial Attorneys Gary A. Winters and Christopher Wenger of the Criminal Division’s Fraud Section, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Arlington Man Sentenced for Attempting to Disable Railroad EquipmentRead the Press Release
United States Attorney Susan Lehr announced that Allan J. Love, Jr., 50, of Arlington, Nebraska, was sentenced on January 31, 2024, in federal court in Omaha, Nebraska, for attempting to disable railroad equipment. United States District Judge Brian C. Buescher sentenced Love to 12 months’ and 1 day imprisonment. There is no parole in the federal system. After Love’s release from prison, he will begin a 2-year term of supervised release.
On September 3, 2019, west of the 16th Street railroad crossing in Blair, Nebraska, a Union Pacific Railroad track maintenance worker discovered an approximately 6-foot-long green metal pipe lodged in the space between the railroad track switch bar and rail, making it impossible to fully move the switch into position.
Through investigation and law enforcement contacts with Love, law enforcement seized a green metal pipe found in Love’s pickup truck on April 30, 2020. Forensics performed on the green pipe found lodged in the railroad track and the green pipe found in Love’s truck determined the paints used on both pipes were indistinguishable in color, texture, and chemical composition. A metallurgy examination of the pipes determined that both were sections of welded, low-carbon steel tube with similar outer diameter, wall thickness, and weld manufacturing features.
Law enforcement also executed a search warrant on Love’s Google account. Within the Google account law enforcement found a photo taken on July 20, 2019, of the 16th Street railroad crossing in Blair showing the stretch of railroad track where the green pipe was found.
This case was investigated by the Federal Bureau of Investigation.
2 Columbus police officers arrested on drug charges related to stealing, selling multiple kilograms of cocaineRead the Press Release
COLUMBUS, Ohio – Two Columbus police officers have been arrested on federal charges alleging they stole multiple kilograms of cocaine and provided it to others to sell.
John Castillo, 31, of Grove City, and Joel M. Mefford, 34, of London, Ohio, were arrested today and appeared in federal court this afternoon, at which point their cases were unsealed.
According to Mefford’s indictment, in February 2020, he was investigating a drug crime and unlawfully gained access to a detached garage belonging to the subject of the investigation. It is alleged Mefford, without a warrant, discovered two kilograms of cocaine in the rafters of the garage. Mefford allegedly unlawfully seized one of the kilograms and left the other to be found during the execution of a search warrant the next morning. The defendant allegedly gave the stolen narcotics to an individual to sell.
Similarly, in February and March 2020, Mefford was investigating drug-trafficking activity at houses on Ambleside Drive and Kilbourne Avenue in Columbus. On March 7, 2020, the officer allegedly took a bag containing multiple kilograms of cocaine from the house on Ambleside Drive and arrested an individual there. He then allegedly traveled to the house on Kilbourne Avenue and removed a kilogram of cocaine. That same day, it is alleged Mefford turned in one kilogram of cocaine to evidence and stole the other kilograms to be sold.
It is further alleged that Mefford stole 20 kilograms of cocaine from the Columbus police property room in April 2020, replacing it with fake cocaine.
Mefford also allegedly deposited more than $72,000 in cash derived from the cocaine sales into his personal bank account.
Castillo’s indictment alleges that in February 2021, Castillo took approximately 10 kilograms of cocaine from a house on North Everett Avenue and did not turn it into evidence. He allegedly planted two additional kilograms of cocaine for law enforcement discovery later that day at the house. The 10 kilograms of cocaine were allegedly stored in another person’s basement before they were given to another individual to sell.
Castillo and Mefford are charged in separate indictments with possessing with intent to distribute five kilograms or more of cocaine, a federal crime punishable by at least 10 years and up to life in prison. Mefford is also charged with money laundering and two counts of possessing with intent to distribute 500 grams or more of cocaine.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Zrinka Dilber, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant United States Attorney Peter K. Glenn-Applegate and Elizabeth A. Geraghty are representing the United States in this case. The case was investigated by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents and officers from the FBI, Ohio Attorney General’s Bureau of Criminal Investigations, the Ohio Auditor of State’s Office and the Columbus Division of Police.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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31 January 2024
“King” of Violent Haitian Gang Pleads Guilty to Gun Smuggling and Money Laundering After Government’s CaseRead the Press Release
WASHINGTON – Joly Germine, 31, of Croix-des-Bouquets, Haiti, the self-described “King” of a notoriously violent Haitian gang known as 400 Mawozo, pleaded guilty today to his role in a gunrunning conspiracy that smuggled firearms to Haiti in violation of U.S. export laws, and the laundering of ransoms paid for U.S. hostages to the gang in 2021. The conspiracy resulted in the purchase in the United States of at least twenty-four firearms, including AK-47s, AR-15s, an M4 Carbine rifle, an M1A rifle, and a .50 caliber rifle, described by the ATF as a military weapon, which were smuggled from the United States to the gang in Haiti for their criminal activities. The announcement was made by U.S. Attorney Matthew M. Graves, Assistant Attorney General for National Security Matthew G. Olsen, and FBI Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office. Co-defendant Eliande Tunis, 45, of Pompano Beach, Florida, pled guilty on January 17, 2024, to the same offenses.
The plea came at the end of the government’s case during trial, after the twenty-four witnesses and two weeks of evidence. Germine, a Haitian national, pled guilty in U.S. District Court for the District of Columbia before Judge John D. Bates to the 48-count second superseding indictment. The indictment charged Germine with conspiring to violate U.S. export control laws and to defraud the United States, violating export control laws, smuggling, and laundering the proceeds of ransoms paid to free U.S. hostages taken by the gang and laundering money to promote his crimes. He faces up to life in prison when he is sentenced on May 15, 2024.
Germine’s co-defendant and former girlfriend Tunis, who styled herself as his “wife” and was described at trial as the “Queen”, pled guilty on the eve of trial on January 17, 2024, to the same 48-count indictment. She also faces up to life in prison when she is sentenced on May 8, 2024. Another co-defendant, Jocelyn Dor, age 31, who acted as a straw gun purchaser for Germine and Tunis, previously pled guilty on October 30, 2023, and will be sentenced on February 28, 2024.
“Violent gangs have ravaged Haiti, and, all too often, Americans in Haiti have been targets of their violence,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “These two defendants not only helped lead a prominent violent gang in Haiti, but they were also intimately involved in arming the gang and laundering ransom proceeds the gang obtained from kidnapping Americans. Preventing them from illegally shipping anymore firearms or laundering the proceeds of kidnappings strikes a critical blow against the gang they once led.”
“Violent, well-armed gangs pose an ongoing threat to U.S. Citizens who live in or travel to Haiti,” said FBI Special Agent in Charge Jeffrey B. Veltri, of the Miami Field Office. “As Joly Germine and Eliande Tunis have just learned, the FBI is dedicated to disrupting and dismantling gangs who undertake hostage-taking of U.S. Citizens anywhere. This includes taking away their ability to wreak violence on the innocent using smuggled firearms.”
According to the evidence the government presented at trial, from at least March through November 2021, Germine, Tunis, and two co-defendants conspired with each other and with other gang members in Haiti to acquire and supply firearms to the 400 Mawozo gang in Haiti. Germine directed the gang’s operations from a Haitian prison using unmonitored cell phones, including directing gang members in Haiti to transfer money to Tunis and others in the United States for the purpose of obtaining firearms for the gang. Germine then provided Tunis and the two other U.S.-based co-defendants, all Florida residents, specifications for firearms and ammunition that Germine and other gang leaders wanted sent to Haiti. Tunis and the two co-defendants then purchased at least 24 rifles, handguns, and a shotgun at Florida gun shops while falsely stating that they were the “actual buyers” of the firearms, when they were in fact acting as straw purchasers for Germine. In approximately May 2021, Tunis smuggled firearms and ammunition to Haiti in containers disguised as food and household goods. In October 2021, Tunis shipped additional firearms and ammunition to Haiti, again by smuggling the firearms, but those firearms were seized by the FBI before they left the United States.
400 Mawozo is a violent Haitian gang that operated in the Croix-des-Bouquets area to the east of the capital, Port-au-Prince. From at least January 12, 2020, 400 Mawozo was engaged in armed hostage takings of U.S. citizens in Haiti for ransom. The victims have generally been forced from their vehicles at gunpoint and kept in various locations by armed gang members while their relatives and colleagues negotiate payment for their release. At trial, the government presented evidence that the gang received ransom payments from the hostage taking of three U.S. citizens in the summer of 2021, who testified at trial, and the cash ransom proceeds were commingled with the gangs’ funds and transferred via MoneyGram and Western Union from the United States to Haiti to buy more firearms. In the fall of 2021, the 400 Mawozo gang claimed responsibility for taking 16 U.S. citizens hostage, including five children, and one Canadian citizen who were part of a missionary organization visiting an orphanage in Port-au-Prince. The gang demanded a ransom of $l million for each hostage. The hostages escaped on or about December 16, 2021. This case does not address those hostage taking charges, for which Germine has been separately indicted in Case No. 22-cr-161 (DDC).
The case was investigated by the FBI’s Miami Field Office, with assistance the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Department of Commerce’s Office of Export Enforcement. Valuable assistance was provided by the Haitian National Police, the government of Haiti, the FBI’s Washington Field Office, the U.S. Marshal’s Service, the Department of Justice’s Office of International Affairs, the Diplomatic Security Service of the U.S. Department of State, and the U.S. Attorney’s Office for the Southern District of Florida’s Special Prosecutions Section.
The case is being prosecuted by Assistant U.S. Attorneys Karen P. Seifert and Kimberly Paschall and Paralegal Specialist Jorge Casillas of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Beau Barnes of the Counterintelligence and Export Control Section of the National Security Division.
eBay to Pay $59 Million to Settle Controlled Substances Act Allegations Related to Pill Presses Sold Through its WebsiteRead the Press Release
eBay Inc., an e-commerce company headquartered in San Jose, California, has agreed to pay $59 million and to enhance its compliance program to resolve allegations that it violated the Controlled Substances Act (CSA) in connection with thousands of pill presses and encapsulating machines that were sold through its website.
Pill presses and encapsulating machines can be used by criminals to manufacture illegal drugs. When used with a mold, stamp, or die mimicking commonly prescribed controlled substances, pill presses are capable of producing counterfeit pills that appear indistinguishable from legitimate pharmaceutical drugs, including pills that are sometimes laced with fentanyl.
The CSA regulates certain pharmaceutical manufacturing equipment, including pill presses and encapsulating machines, by requiring identity verification of purchasers, record-keeping, and reporting to the Drug Enforcement Administration (DEA). These requirements are designed to prevent individuals who intend to use these machines illegally from obtaining them and to ensure that the machines are traceable to the end user.
The United States alleged that eBay did not comply with these CSA requirements for thousands of pill presses and encapsulating machines that were sold through its website, including high-capacity pill presses capable of producing thousands of pills per hour. The United States’ investigation further found that hundreds of eBay’s pill press buyers also purchased counterfeit molds, stamps, or dies, allowing them to produce pills that mimicked the products of legitimate pharmaceutical companies, and that many of eBay’s pill press buyers have been successfully prosecuted in connection with trafficking illegal counterfeit pills.
“Counterfeit pills laced with fentanyl are a significant contributor to the deadly overdose epidemic,” said Associate Attorney General Vanita Gupta, Chair of the Justice Department's Opioid Epidemic Civil Litigation Task Force. “The Department is committed to using all available enforcement measures to ensure that companies involved in selling the equipment that makes it possible to create these dangerous pills comply with the Controlled Substances Act.”
“Americans deserve to be protected from the dangers of counterfeit prescription pills,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Civil Division will continue to work with our law enforcement partners to ensure that all those involved in the sale of counterfeit pills and the equipment used to manufacture counterfeit pills are held accountable.”
“Through its website, eBay made it easy for individuals across the country to obtain the type of dangerous machines that are often used to make counterfeit pills. Our investigation revealed that some of these machines were even sold to individuals who were later convicted of drug related crimes,” said U.S. Attorney Nikolas P. Kerest for the District of Vermont. “Our office is committed to holding accountable those who have contributed to the devastating fentanyl crisis we are facing in our communities. Today’s settlement is an important step to ensuring that e-commerce companies do their part by complying with regulations that are designed to protect the public.”
“eBay’s failure to comply with the Controlled Substances Act’s basic reporting and record keeping requirements for the sales of pill presses contributed to the proliferation of counterfeit pills in this country by allowing private citizens to set up pill factories in their homes and to do so without detection,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “This settlement holds eBay accountable for its compliance lapses, serves as a reminder to other e-commerce companies that the Justice Department will enforce these requirements, and will help keep these items out of the hands of criminals moving forward.”
“Fentanyl — pressed into fake pills that look like real prescription medications — is killing Americans. Drug traffickers buy the tools to make fake pills, like pill presses, online,” said DEA Administrator Anne Milgram. “eBay and other e-commerce platforms must do their part to protect the public. And when they do not, DEA will hold them accountable.”
In addition to the monetary settlement, eBay also has agreed to maintain and enhance its compliance program with respect to its prohibited and restricted items policy as it pertains to sales of pill presses, counterfeit molds, stamps, and dies, and encapsulating machines.
The matter was handled by Trial Attorneys Scott B. Dahlquist and Deborah Sohn, Senior Trial Attorney Sarah Williams, Senior Counsel for Policy and Compliance Shannon Pedersen, Senior Deputy Director of Criminal Litigation A.J. Nardozzi, Director Amanda Liskamm, and Deputy Assistant Attorney General Arun G. Rao of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorneys Kaitlin E. Hazard and Lauren Almquist Lively and Civil Chief Jules Torti for the District of Vermont, and Assistant U.S. Attorney Wynn Shuford, Deputy Civil Chief Ellen Bowden McIntyre, and Executive Assistant U.S. Attorney Mark Wildasin for the Middle District of Tennessee.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
SettlementeBay to Pay $59 Million to Settle Controlled Substances Act Allegations Related to Pill Presses Sold Through its WebsiteRead the Press Release
NASHVILLE – eBay Inc., an e-commerce company headquartered in San Jose, California, has agreed to pay $59 million and to enhance its compliance program to resolve allegations that it violated the Controlled Substances Act (CSA) in connection with thousands of pill presses and encapsulating machines that were sold through its website.
Pill presses and encapsulating machines can be used by criminals to manufacture illegal drugs. When used with a mold, stamp, or die mimicking commonly prescribed controlled substances, pill presses are capable of producing counterfeit pills that appear indistinguishable from legitimate pharmaceutical drugs, including pills that are sometimes laced with fentanyl.
The CSA regulates certain pharmaceutical manufacturing equipment, including pill presses and encapsulating machines, by requiring identity verification of purchasers, record-keeping, and reporting to the Drug Enforcement Administration. These requirements are designed to prevent individuals who intend to use these machines illegally from obtaining them and to ensure that the machines are traceable to the end user.
The United States alleged that eBay did not comply with these CSA requirements for thousands of pill presses and encapsulating machines that were sold through its website, including high-capacity pill presses capable of producing thousands of pills per hour. The United States' investigation, which began in the Middle District of Tennessee, further found that hundreds of eBay's pill press buyers also purchased counterfeit molds, stamps, or dies, allowing them to produce pills that mimicked the products of legitimate pharmaceutical companies, and that many of eBay's pill press buyers have been successfully prosecuted in connection with trafficking illegal counterfeit pills.
“Counterfeit pills laced with fentanyl are a significant contributor to the deadly overdose epidemic,” said Associate Attorney General Vanita Gupta, Chair of the Department of Justice’s Opioid Epidemic Civil Litigation Task Force. “The Department is committed to using all available enforcement measures to ensure that companies involved in selling the equipment that makes it possible to create these dangerous pills comply with the Controlled Substances Act.”
“eBay’s failure to comply with the Controlled Substances Act’s basic reporting and record keeping requirements for the sales of pill presses contributed to the proliferation of counterfeit pills in this country by allowing private citizens to set up pill factories in their homes and to do so without detection,” said United States Attorney for the Middle District of Tennessee, Henry C. Leventis. “This settlement holds eBay accountable for its compliance lapses, serves as a reminder to other e-commerce companies that the Department of Justice will enforce these requirements, and will help keep these items out of the hands of criminals moving forward.”
“Americans deserve to be protected from the dangers of counterfeit prescription pills,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The Civil Division will continue to work with our law enforcement partners to ensure that all those involved in the sale of counterfeit pills and the equipment used to manufacture counterfeit pills are held accountable.”
“Through its website, eBay made it easy for individuals across the country to obtain the type of dangerous machines that are often used to make counterfeit pills. Our investigation revealed that some of these machines were even sold to individuals who were later convicted of drug related crimes,” said United States Attorney for the District of Vermont, Nikolas P. Kerest. “Our office is committed to holding accountable those who have contributed to the devastating fentanyl crisis we are facing in our communities. Today’s settlement is an important step to ensuring that e-commerce companies do their part by complying with regulations that are designed to protect the public.”
“Fentanyl—pressed into fake pills that look like real prescription medications—is killing Americans. Drug traffickers buy the tools to make fake pills, like pill presses, online,” said DEA Administrator Anne Milgram. “eBay and other e-commerce platforms must do their part to protect the public. And when they do not, DEA will hold them accountable.”
In addition to the monetary settlement, eBay also has agreed to maintain and enhance its compliance program with respect to its prohibited and restricted items policy as it pertains to sales of pill presses, counterfeit molds, stamps, and dies, and encapsulating machines.
The matter was handled by Trial Attorneys Scott B. Dalquist and Deborah Sohn, Senior Trial Attorney Sarah Williams, Senior Counsel for Policy and Compliance Shannon Pedersen, Senior Deputy Director of Criminal Litigation A.J. Nardozzi, Director Amanda Liskamm, and Deputy Assistant Attorney General Arun G. Rao of the Civil Division's Consumer Protection Branch, Assistant U.S. Attorneys Kaitlin E. Hazard and Lauren Almquist Lively and Civil Chief Jules Torti of the U.S. Attorney's Office for the District of Vermont, and Assistant U.S. Attorney Wynn Shuford, Deputy Civil Chief Ellen Bowden McIntyre, and Executive Assistant U.S. Attorney Mark H. Wildasin of the U.S. Attorney's Office for the Middle District of Tennessee.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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eBay to Pay $59 Million to Settle Controlled Substances Act Allegations Related to Pill Presses Sold Through its WebsiteRead the Press Release
Burlington, Vermont – eBay Inc, an e-commerce company headquartered in San Jose, California, has agreed to pay $59 million and to enhance its compliance program to resolve allegations that it violated the Controlled Substances Act (CSA) in connection with thousands of pill presses and encapsulating machines that were sold through its website.
Pill presses and encapsulating machines can be used by criminals to manufacture illegal drugs. When used with a mold, stamp, or die mimicking commonly prescribed controlled substances, pill presses are capable of producing counterfeit pills that appear indistinguishable from legitimate pharmaceutical drugs, including pills that are sometimes laced with fentanyl.
The CSA regulates certain pharmaceutical manufacturing equipment, including pill presses and encapsulating machines, by requiring identity verification of purchasers, record-keeping, and reporting to the Drug Enforcement Administration. These requirements are designed to prevent individuals who intend to use these machines illegally from obtaining them and to ensure that the machines are traceable to the end user.
The United States alleged that eBay did not comply with these CSA requirements for thousands of pill presses and encapsulating machines that were sold through its website, including high-capacity pill presses capable of producing thousands of pills per hour. The United States’ investigation further found that hundreds of eBay’s pill press buyers also purchased counterfeit molds, stamps, or dies, allowing them to produce pills that mimicked the products of legitimate pharmaceutical companies, and that many of eBay’s pill press buyers have been successfully prosecuted in connection with trafficking illegal counterfeit pills.
“Counterfeit pills laced with fentanyl are a significant contributor to the deadly overdose epidemic,” said Associate Attorney General Vanita Gupta, Chair of the Department of Justice’s Opioid Epidemic Civil Litigation Task Force. “The Department is committed to using all available enforcement measures to ensure that companies involved in selling the equipment that makes it possible to create these dangerous pills comply with the Controlled Substances Act.”
“Through its website, eBay made it easy for individuals across the country to obtain the type of dangerous machines that are often used to make counterfeit pills. Our investigation revealed that some of these machines were even sold to individuals who were later convicted of drug related crimes,” said United States Attorney for the District of Vermont, Nikolas P. Kerest. “Our office is committed to holding accountable those who have contributed to the devastating fentanyl crisis we are facing in our communities. Today’s settlement is an important step to ensuring that e-commerce companies do their part by complying with regulations that are designed to protect the public.”
“eBay’s failure to comply with the Controlled Substances Act’s basic reporting and record keeping requirements for the sales of pill presses contributed to the proliferation of counterfeit pills in this country by allowing private citizens to set up pill factories in their homes and to do so without detection,” said United States Attorney for the Middle District of Tennessee, Henry C. Leventis. “This settlement holds eBay accountable for its compliance lapses, serves as a reminder to other e-commerce companies that the Department of Justice will enforce these requirements, and will help keep these items out of the hands of criminals moving forward.”
“Americans deserve to be protected from the dangers of counterfeit prescription pills,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The Civil Division will continue to work with our law enforcement partners to ensure that all those involved in the sale of counterfeit pills and the equipment used to manufacture counterfeit pills are held accountable.”
“Fentanyl—pressed into fake pills that look like real prescription medications—is killing Americans. Drug traffickers buy the tools to make fake pills, like pill presses, online,” said DEA Administrator Anne Milgram. “eBay and other e-commerce platforms must do their part to protect the public. And when they do not, DEA will hold them accountable.”
In addition to the monetary settlement, eBay also has agreed to maintain and enhance its compliance program with respect to its prohibited and restricted items policy as it pertains to sales of pill presses, counterfeit molds, stamps, and dies, and encapsulating machines.
The matter was handled by Assistant U.S. Attorneys Kaitlin E. Hazard and Lauren Almquist Lively and Civil Chief Jules Torti of the U.S. Attorney’s Office for the District of Vermont, Assistant U.S. Attorney Wynn Shuford, Deputy Civil Chief Ellen Bowden McIntyre, and Executive Assistant U.S. Attorney Mark Wildasin of the U.S. Attorney’s Office for the Middle District of Tennessee, and Trial Attorneys Scott B. Dahlquist and Deborah Sohn, Senior Trial Attorney Sarah Williams, Senior Counsel for Policy and Compliance Shannon Pedersen, Senior Deputy Director of Criminal Litigation A.J. Nardozzi, Director Amanda Liskamm, and Deputy Assistant Attorney General Arun G. Rao of the Civil Division’s Consumer Protection Branch.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
SettlementYork Man Sentenced to Probation for Straw Purchase of FirearmsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jordan Bryan Griffie, age 22, of York Springs, Pennsylvania, was sentenced today by the Honorable Jennifer P. Wilson to serve two years probation based upon his previously entered guilty plea to straw purchasing three firearms for individuals who were prohibited from possessing firearms.
According to United States Attorney Gerard Karam, on three separate occasions in 2020, Griffie purchased firearms from a licensed firearms dealer and falsely stated at the time of the purchases that he was the actual purchaser. He subsequently falsely reported that the firearms were stolen because he feared those firearms might be used in illegal activities.
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.
The case was investigated by the York County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Bruce D. Brandler and former Assistant United States Attorney Paul Miovas prosecuted the case.
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Wisconsin Man Sentenced to Prison for Hacking Fantasy Sports and Betting WebsiteRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JOSEPH GARRISON was sentenced to 18 months in prison for his role in a scheme to hack user accounts on a fantasy sports and betting website (the “Betting Website”) and sell access to those accounts, resulting in losses of hundreds of thousands of dollars to the users. GARRISON was sentenced today before U.S. District Judge Lewis A. Kaplan. On November 15, 2023, GARRISON pled guilty to one count of conspiring to commit computer intrusion.
U.S. Attorney Damian Williams said: “Joseph Garrison and his co-conspirators orchestrated a bold credential stuffing attack – collecting stolen usernames and password pairs from other large-scale data breaches – by exploiting vulnerabilities to siphon approximately $600,000 from unsuspecting victims. Such attacks not only breach personal security but erode trust in online platforms. Today’s sentencing underscores the urgent need for vigilance and the critical importance of our collective efforts in combatting cyber threats and safeguarding digital integrity.”
According to the charging documents and other filings and statements made in court:
On or about November 18, 2022, GARRISON launched a “credential stuffing attack” on the Betting Website. During a credential stuffing attack, a cyber threat actor collects stolen credentials, or username and password pairs, obtained from other large-scale data breaches, which can be purchased on the dark web. The threat actor then systematically attempts to use those stolen credentials to obtain unauthorized access to accounts held by the same user with other companies and providers in order to compromise accounts where the user has maintained the same password. Here, in connection with the attack on the Betting Website, there was a series of attempts to log into the Betting Website accounts using a large list of stolen credentials.
GARRISON and others successfully accessed approximately 60,000 accounts on the Betting Website (the “Victim Accounts”) through the credential stuffing attack. In some instances, the individuals who unlawfully accessed the Victim Accounts were able to add a new payment method on the account, deposit $5 into that account through the new payment method to verify that method, and then withdraw all the existing funds in the Victim Account through the new payment method (i.e., to a newly added financial account belonging to the hacker), thus stealing the funds in the Victim Accounts. Using this method, GARRISON and others stole approximately $600,000 from approximately 1,600 Victim Accounts on the Betting Website.
Law enforcement executed a search on GARRISON’s home in February 2023. In that search, they located programs typically used for credential stuffing attacks. Those programs require individualized “config” files for a target website to launch credential stuffing attacks, and law enforcement located approximately 700 such config files for dozens of different corporate websites on GARRISON’s computer. Law enforcement also located files containing nearly 40 million username and password pairs on GARRISON’s computer, which are also used in credential stuffing attacks.
On GARRISON’s cellphone, law enforcement also located conversations between GARRISON and his co-conspirators, including discussions about how to hack the Betting Website and how to profit from the hack of the Betting Website by extracting funds from the Victim Accounts directly or by selling access to the Victim Accounts. In one particular conversation, GARRISON discussed, in substance and in part, how successful he was at credential stuffing attacks, how much he enjoyed credential stuffing attacks, and how GARRISON believed that law enforcement would not catch or prosecute him. Specifically, GARRISON messaged the following, in substance and in part: “fraud is fun . . . im addicted to see money in my account . . . im like obsessed with bypassing shit.”
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In addition to the prison term, GARRISON, 19, of Madison, Wisconsin, was sentenced to 3 years of supervised release and ordered to pay $175,019.11 in forfeiture and $1,327,061 in restitution.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the New York City Police Department for its assistance in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kevin Mead and Micah Fergenson are in charge of the prosecution.
Winona man sentenced to prison for distributing drugsRead the Press Release
Greenville, MS – A Winona man was sentenced today to ten years in prison for distribution of a controlled substance.
According to court documents, William Earl Murray, aka “Big Earl,” 48, previously pled guilty to one count of distribution of 50 grams or more of methamphetamine. Murray was sentenced today by U.S. District Judge Debra M. Brown to 120 months imprisonment followed by four years of supervised release. Murray was taken into custody by U.S. Marshals following the sentencing hearing.
“We will continue to use all available resources to pursue those who spread the scourge of illegal drugs in our communities,” said U.S. Attorney Clay Joyner. “Today’s sentencing will hopefully deter other methamphetamine traffickers who contribute to our nation’s drug crisis and destroy lives and I commend the Mississippi Bureau of Narcotics and the Winona Police Department for bringing this defendant to justice.”
"I am proud of the work done by the Mississippi Bureau of Narcotics, Northern District of Mississippi - U.S. Attorney's Office, and Winona Police Department on this case," said Mississippi Department of Public Safety Commissioner Sean Tindell. "When we work together to combat crime, we not only strengthen our law enforcement partnerships but also create a safer environment for our communities."
The Mississippi Bureau of Narcotics and the Winona Police Department investigated the case. AUSA Robert Mims prosecuted the case.
Wilmington Resident Sentenced to over 11 years in Federal Prison for Drug Distribution and Firearm PossessionRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware announced that a Delaware man was sentenced on Monday to 135 months in federal prison following a jury conviction in August 2023. Chief U.S. District Judge Colm F. Connolly presided over the trial and pronounced the sentence.
The jury found that James Richard Smith III, age 46 of Wilmington, DE, sold cocaine, methamphetamine, and a firearm to a Delaware State Police undercover officer in November 2019. During trial, the government introduced audio and video evidence that Smith flaunted himself as a drug dealer, stating he could obtain whatever drugs the undercover wanted. Indeed, in November 2019, Smith sold the officer drugs on three occasions – the first of which involved not only illegal drugs but included selling the undercover officer a stolen semi-automatic rifle. During the final drug transaction, Smith sold the undercover officer over 50 grams of methamphetamine, resulting in a mandatory minimum ten-year sentence.
U.S. Attorney Weiss stated, “The combination of trafficking illegal drugs while possessing firearms is doubly dangerous.” My office is committed to working alongside our law enforcement partners to combat illegal drug distribution and firearm possession within our communities. This case is a testament to the multiple law enforcement agencies who tirelessly investigated this case to ensure Mr. Smith was brought to justice.”
The case was investigated by Delaware State Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the Drug Enforcement Administration. Assistant U.S. Attorneys Briana Knox and Samuel Frey tried the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 20-cr-26.
Washington man sentenced to 12 years in prison for trafficking meth, fentanyl in MontanaRead the Press Release
MISSOULA — A Washington man who admitted to bringing methamphetamine and thousands of fentanyl pills to Montana for distribution was sentenced today to 12 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Ryan Creighton Doak, 49, of Everett, Washington, pleaded guilty in September 2023 to possession with intent to distribute controlled substances.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that on Feb. 2, 2023, Doak was the passenger in a vehicle, driven by his girlfriend, that was stopped in Montana. Law enforcement arrested Doak after a Montana Highway Patrol trooper located a device for smoking drugs and a small amount of heroin on Doak. Investigators executed a search warrant on the vehicle and recovered a firearm, more than 100 grams of meth, and nearly 3,000 fentanyl pills. Doak admitted to investigators to making several trips to Montana to distribute controlled substances. The government estimated that Doak brought to Montana 12,000 to 14,000 fentanyl pills and 1.5 to 1.75 pounds of meth in three months.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case. The Missoula High Intensity Drug Trafficking Area Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Highway Patrol 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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Washington Gun Offender Sentenced to 70 Months in Federal PrisonRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Reily William Arambul, age 28, was sentenced after pleading guilty to Felon in Possession of a Firearm. United States District Judge Mary K. Dimke imposed a sentence of 70 months imprisonment to be followed by 3 years of supervised release.
According to court documents and information disclosed at sentencing, on May 9, 2023, Armbul met a man at a friend’s house, who he asked for a ride to an apartment complex near West 5th Avenue in Spokane. When they arrived, Arambul walked up to the apartment complex. The driver waited in the vehicle. While outside the vehicle, Arambul engaged in a verbal confrontation with individuals at the apartment complex. During this verbal confrontation, a residence of the complex call 911 to report disturbance and that an individual, later identified as Arambul, was in possession of a weapon.
As officers with the Spokane Police Department arrived to Arambul’s location, they observed Arambul run back to the truck in which he arrived, and enter the passenger seat. SPD officers ordered the men in the truck to show their hands. The driver put his hands in the air, but Arambul refused. Instead, Arambul attempted to flee law enforcement, reached over from the passenger seat, put the truck in reverse, pressed the gas and began to steer the truck westbound on 5th Avenue. After a short distance, however, the driver managed to press the brakes and stop the truck. SPD then boxed the truck in.
After the truck was boxed in, Arambul got out and began running from officers. He was arrested a short distance away. Officers searched Arambul and found two knives, a black leather holster, a bag of syringes, and a small red bag with approximately 60 fentanyl pills inside. Officers also found a black and silver semi-automatic pistol belonging to the defendant lying the grass nearby.
During the sentencing hearing, Judge Dimke noted Arambul’s choice to pull out a firearm put many people, including law enforcement and members of the community, at risk.
“Mr. Arambul put the community in danger by recklessly taking control of a vehicle in an attempt to escape from the police – all while armed with an illegal firearm. Thankfully, he did not get far, and no one was hurt,” stated U.S. Attorney Waldref. “I am grateful to the brave men and women in law enforcement who place their safety at risk every day to protect our community.”
“As a convicted felon, Mr. Arambul knew he was prohibited from possessing firearms.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Not only did he possess a gun, he continued to disregard the law and engaged in other criminal activity including possessing dangerous weapons and illegal drugs while fleeing from law enforcement. Fortunately, no one was injured due to the swift actions taken by the Spokane Police. The FBI relies on partnerships like these as we work to protect the citizens of Washington state.”
“Today’s sentencing serves as a reminder that a convicted felon who illegally possesses a firearm will be held accountable. Mr. Arambul showed no regard for community members or police officers during this incident which highlights the dangers our officers increasingly face when those involved in criminal activity are armed and refuse to comply with police when contacted,” stated Interim Spokane Police Chief Justin Lundgren. “The Spokane Police Department appreciates the collaboration with our federal partners that helps keep the Spokane community safe and armed felons out of our neighborhoods. “
This case was investigated by the Federal Bureau of Investigation, and the Spokane Police Department. This case was prosecuted by Assistant United States Attorney Patrick Cashman.
U.S. government disrupts botnet People’s Republic of China used to conceal hacking of critical infrastructureRead the Press Release
HOUSTON – A December 2023 court-authorized operation has disrupted a botnet of hundreds of U.S.-based small office/home office (SOHO) routers hijacked by People’s Republic of China (PRC) state-sponsored hackers.
The hackers, known to the private sector as “Volt Typhoon,” used privately-owned SOHO routers infected with the “KV Botnet” malware to conceal the PRC origin of further hacking activities directed against U.S. and other foreign victims. These further hacking activities included a campaign targeting critical infrastructure organizations in the United States and elsewhere that was the subject of a May 2023 FBI, National Security Agency, Cybersecurity and Infrastructure Security Agency (CISA), and foreign partner advisory. The same activity has been the subject of private sector partner advisories in May and December 2023, as well as an additional secure by design alert released today by CISA.
The vast majority of routers that comprised the KV Botnet were Cisco and NetGear routers that were vulnerable because they had reached “end of life” status; that is, they were no longer supported through their manufacturer’s security patches or other software updates. The court-authorized operation deleted the KV Botnet malware from the routers and took additional steps to sever their connection to the botnet, such as blocking communications with other devices used to control the botnet.
“The Justice Department has disrupted a PRC-backed hacking group that attempted to target America’s critical infrastructure utilizing a botnet,” said Attorney General Merrick B. Garland. “The United States will continue to dismantle malicious cyber operations – including those sponsored by foreign governments – that undermine the security of the American people.”
“China’s hackers are targeting American civilian critical infrastructure, pre-positioning to cause real-world harm to American citizens and communities in the event of conflict” said FBI Director Christopher Wray. “Volt Typhoon malware enabled China to hide as they targeted our communications, energy, transportation, and water sectors. Their pre-positioning constitutes a potential real-world threat to our physical safety that the FBI is not going to tolerate. We are going to continue to work with our partners to hit the PRC hard and early whenever we see them threaten Americans.”
“In wiping out the KV Botnet from hundreds of routers nationwide, the Department of Justice is using all its tools to disrupt national security threats – in real time,” said Deputy Attorney General Lisa O. Monaco. “Today’s announcement also highlights our critical partnership with the private sector – victim reporting is key to fighting cybercrime, from home offices to our most critical infrastructure.”
“Today, the FBI and our partners continue to stand firmly against People's Republic of China cyber actors that threaten our nation's cyber security,” said FBI Deputy Director Paul Abbate. “We remain committed to thwarting malicious activities of this type and will continue to disrupt and dismantle cyber threats, safeguarding the fabric of our cyber infrastructure.” “This operation disrupted the efforts of PRC state-sponsored hackers to gain access to U.S. critical infrastructure that the PRC would be able to leverage during a future crisis,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The operation, together with the release of valuable network defense guidance by the U.S. government and private sector partners, demonstrates the Department of Justice’s commitment to enhance cybersecurity and disrupt efforts to hold our critical infrastructure at risk.”
“Using traditional law enforcement tools to disrupt state-of-the-art technologies, the U.S. Attorney’s Office for the Southern District of Texas protected Americans from PRC government-sponsored cyber-criminals who used U.S. based routers to hack into American targets,” said U.S. Attorney Alamdar S. Hamdani. “This case demonstrates my office’s ongoing commitment to defending our critical infrastructure from PRC initiated cyber-attacks. We thank the FBI and the Justice Department’s National Security Division for its work, and we will continue to work shoulder to shoulder with them to shield our country from state-sponsored hackers.”
“The FBI’s dismantling of the KV Botnet sends a clear message that the FBI will take decisive action to protect our nation’s critical infrastructure from cyber-attacks,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “By ensuring home and small-business routers are replaced after their end-of-life expiration, everyday citizens can protect both their personal cyber security and the digital safety of the United States. We need the American public’s vigilance and support to continue our fight against malicious PRC-sponsored cyber actors.”
As described in court documents, the government extensively tested the operation on the relevant Cisco and NetGear routers. The operation did not impact the legitimate functions of, or collect content information from, hacked routers. Additionally, the court-authorized steps to disconnect the routers from the KV Botnet and prevent reinfection are temporary in nature. A router’s owner can reverse these mitigation steps by restarting the router. However, a restart that is not accompanied by mitigation steps similar to those the court order authorized will make the router vulnerable to reinfection.
The FBI is providing notice of the court-authorized operation to all owners or operators of SOHO routers that were infected with the KV Botnet malware and remotely accessed pursuant to the operation. For those victims whose contact information was not publicly available, the FBI has contacted providers (such as a victim’s internet service provider) and has asked those providers to provide notice to the victims.
FBI’s Houston Field Office and Cyber Division, the U.S. Attorney’s Office for the Southern District of Texas and the National Security Cyber Section of the Justice Department’s National Security Division led the disruption effort. The Justice Department’s Criminal Division Computer Crime and Intellectual Property Section and Office of International Affairs provided valuable assistance. These efforts would not have been successful without the partnership of numerous private-sector entities.
If you believe you have a compromised router. Please visit the FBI’s Internet Crime Complaint Center or report online to CISA. The remediated routers remain vulnerable to future exploitation by Volt Typhoon and other hackers, and the FBI strongly encourages router owners to remove and replace any end-of-life SOHO router currently in their networks.
The FBI continues to investigate Volt Typhoon’s computer intrusion activity.
U.S. Government Disrupts Botnet People’s Republic of China Used to Conceal Hacking of Critical InfrastructureRead the Press Release
Note: Since the publication of this press release, U.S. Government and foreign partner agencies have issued additional cybersecurity advisories (CSAs), and completed a Volt Typhoon Malware Analysis Report. Click to view the February 2024 CSAs on:
- PRC State-Sponsored Actors Compromise and Maintain Persistent Access to U.S. Critical Infrastructure
- Identifying and Mitigating Living Off the Land Techniques
- PRC State-Sponsored Cyber Activity: Actions for Critical Infrastructure Leaders
A December 2023 court-authorized operation has disrupted a botnet of hundreds of U.S.-based small office/home office (SOHO) routers hijacked by People’s Republic of China (PRC) state-sponsored hackers.
The hackers, known to the private sector as “Volt Typhoon,” used privately-owned SOHO routers infected with the “KV Botnet” malware to conceal the PRC origin of further hacking activities directed against U.S. and other foreign victims. These further hacking activities included a campaign targeting critical infrastructure organizations in the United States and elsewhere that was the subject of a May 2023 FBI, National Security Agency, Cybersecurity and Infrastructure Security Agency (CISA), and foreign partner advisory. The same activity has been the subject of private sector partner advisories in May and December 2023, as well as an additional secure by design alert released today by CISA.
The vast majority of routers that comprised the KV Botnet were Cisco and NetGear routers that were vulnerable because they had reached “end of life” status; that is, they were no longer supported through their manufacturer’s security patches or other software updates. The court-authorized operation deleted the KV Botnet malware from the routers and took additional steps to sever their connection to the botnet, such as blocking communications with other devices used to control the botnet.
“The Justice Department has disrupted a PRC-backed hacking group that attempted to target America’s critical infrastructure utilizing a botnet,” said Attorney General Merrick B. Garland. “The United States will continue to dismantle malicious cyber operations – including those sponsored by foreign governments – that undermine the security of the American people.”
“In wiping out the KV Botnet from hundreds of routers nationwide, the Department of Justice is using all its tools to disrupt national security threats – in real time,” said Deputy Attorney General Lisa O. Monaco. “Today’s announcement also highlights our critical partnership with the private sector – victim reporting is key to fighting cybercrime, from home offices to our most critical infrastructure.”
“China’s hackers are targeting American civilian critical infrastructure, pre-positioning to cause real-world harm to American citizens and communities in the event of conflict,” said FBI Director Christopher Wray. “Volt Typhoon malware enabled China to hide as they targeted our communications, energy, transportation, and water sectors. Their pre-positioning constitutes a potential real-world threat to our physical safety that the FBI is not going to tolerate. We are going to continue to work with our partners to hit the PRC hard and early whenever we see them threaten Americans.”
“Today, the FBI and our partners continue to stand firmly against People's Republic of China cyber actors that threaten our nation's cyber security,” said FBI Deputy Director Paul Abbate. “We remain committed to thwarting malicious activities of this type and will continue to disrupt and dismantle cyber threats, safeguarding the fabric of our cyber infrastructure.”
“This operation disrupted the efforts of PRC state-sponsored hackers to gain access to U.S. critical infrastructure that the PRC would be able to leverage during a future crisis,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The operation, together with the release of valuable network defense guidance by the U.S. government and private sector partners, demonstrates the Department of Justice’s commitment to enhance cybersecurity and disrupt efforts to hold our critical infrastructure at risk.”
“Using traditional law enforcement tools to disrupt state-of-the-art technologies, the U.S. Attorney’s Office for the Southern District of Texas protected Americans from PRC government-sponsored cyber-criminals who used U.S. based routers to hack into American targets,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “This case demonstrates my office’s ongoing commitment to defending our critical infrastructure from PRC initiated cyber-attacks. We thank the FBI and the Justice Department’s National Security Division for its work, and we will continue to work shoulder to shoulder with them to shield our country from state-sponsored hackers.”
“The FBI’s dismantling of the KV Botnet sends a clear message that the FBI will take decisive action to protect our nation’s critical infrastructure from cyber-attacks,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “By ensuring home and small-business routers are replaced after their end-of-life expiration, everyday citizens can protect both their personal cyber security and the digital safety of the United States. We need the American public’s vigilance and support to continue our fight against malicious PRC-sponsored cyber actors.”
As described in court documents, the government extensively tested the operation on the relevant Cisco and NetGear routers. The operation did not impact the legitimate functions of, or collect content information from, hacked routers. Additionally, the court-authorized steps to disconnect the routers from the KV Botnet and prevent reinfection are temporary in nature. A router’s owner can reverse these mitigation steps by restarting the router. However, a restart that is not accompanied by mitigation steps similar to those the court order authorized will make the router vulnerable to reinfection.
The FBI is providing notice of the court-authorized operation to all owners or operators of SOHO routers that were infected with the KV Botnet malware and remotely accessed pursuant to the operation. For those victims whose contact information was not publicly available, the FBI has contacted providers (such as a victim’s internet service provider) and has asked those providers to provide notice to the victims.
FBI Houston Field Office and Cyber Division, U.S. Attorney’s Office for the Southern District of Texas, and National Security Cyber Section of the Justice Department’s National Security Division led the disruption effort. The Justice Department’s Criminal Division’s Computer Crime and Intellectual Property Section and Office of International Affairs provided valuable assistance. These efforts would not have been successful without the partnership of numerous private-sector entities.
If you believe you have a compromised router, please visit the FBI’s Internet Crime Complaint Center or report online to CISA. The remediated routers remain vulnerable to future exploitation by Volt Typhoon and other hackers, and the FBI strongly encourages router owners to remove and replace any end-of-life SOHO router currently in their networks.
The FBI continues to investigate Volt Typhoon’s computer intrusion activity.
5018 search warrant 5530 search warrant 5451 search warrant 5432 search warrantU.S. Attorney’s Office Welcomes Three New Federal ProsecutorsRead the Press Release
FAIRVIEW HEIGHTS, Ill. – The U.S. Attorney’s Office has sworn in three new federal prosecutors to serve the Southern District of Illinois.
“It’s an honor to welcome new federal prosecutors to our office,” said U.S. Attorney Rachelle Aud Crowe. “Each attorney has a deep knowledge of and respect for the law, and I look forward to supporting them in their new roles.”
Amanda McQuaid, Madalyn Campbell and Kathleen Howard joined the office in various Assistant U.S. Attorney positions. McQuaid will focus on e-Litigation, Campbell fills a position to prosecute domestic terrorism and other violent crime cases and Howard joins the office’s Fraud and Corruption unit.
Before becoming AUSAs, McQuaid served as a law clerk to the Honorable District Judge David W. Dugan of the Southern District of Illinois, Campbell was an Assistant Attorney General for the Missouri Attorney General’s Office and Howard was in private practice.
The U.S. Attorney’s Office in the Southern District of Illinois serves the lower 38 counties of the state. The main office is in Fairview Heights with branch offices in Benton and East St. Louis.
U.S. Attorney’s Office Collects More Than $233 Million in Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
New Haven – U.S. Attorney Vanessa Roberts Avery today announced that the District of Connecticut collected $233,519,760 in criminal and civil actions in Fiscal Year 2023. Of this amount, approximately $185,939,535 was collected in criminal actions and approximately $47,580,225 was collected in civil actions.
The Connecticut U.S. Attorney’s Office also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $493,544 in cases pursued jointly by these offices.
“This past fiscal year, our Office’s dedicated attorneys and staff helped to recover more than $233 million, which ranked third in the nation among all U.S. Attorney’s Offices,” said U.S. Attorney Avery. “These funds are not only returned directly to victims of crime, but they also are used to fund ongoing federal, state, and local law enforcement efforts, and to provide needed services for victims. Through both our criminal prosecutions and civil enforcement work we are committed to seeking justice for victims, removing ill-gotten gains from wrongdoers, and protecting the integrity of important government programs.”
The majority of monies recovered in criminal actions were from Glencore, Ltd., to resolve the government’s investigation into a commodity price manipulation scheme, and from Nomura Securities International, stemming from its fraudulent trading of Residential Mortgage Backed Securities. Large civil recoveries were from a medical doctor and his practice to resolve allegations that it defrauded the Medicare and Medicaid programs, and from Yale University and a professor to settle a case involving the failure to share patent royalties with the government.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the Connecticut U.S. Attorney’s Office, working with partner agencies and divisions, collected $47,825,883 in asset forfeiture actions in FY 2023. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 68 Assistant U.S. Attorneys and 57 staff members at offices in New Haven, Bridgeport, and Hartford.
U.S. Attorney’s Office Collects $7,136,955.82 in Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
SCRANTON - U.S. Attorney Gerard M. Karam announced today that the Middle District of Pennsylvania collected $7,136,955.82 in criminal and civil actions in Fiscal Year 2023. Of this amount, $4,789,318.17 was collected in criminal actions and $2,347,637.65 was collected in civil actions.
Additionally, the Middle District of Pennsylvania worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,481,130.56 in cases pursued jointly by these offices. Of this amount, $28,093.06 was collected in criminal actions and $2,453,037.5 was collected in civil actions.
“We work for the people and the communities of the Middle District of Pennsylvania to keep our neighborhoods safe, and we hold no duty more sacred than that which we owe to our neighbors when they fall victim to crime,” said United States Attorney Karam. “That’s why we do not stop working for victims of crime when the defendant is sentenced; we continue to fight for the victims and do what we can to make them whole. We collect restitution from convicted defendants on behalf of crime victims, we work to forfeit the ill-gotten gains that defendants obtain through illegal means, and we fight to get back money owed to taxpayers in criminal and civil cases. I am proud to say that we have collected millions of dollars over the last year for the taxpayers and for crime victims in our district. We are committed to keeping up the fight for our neighbors.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
For example:
Penn State Health is a multi-hospital health system which owns Milton Hershey Medical Center and St. Joseph Medical Center. On July 1, 2022, Penn State Health voluntarily disclosed to the U.S. Attorney’s Office that Penn State Health, through Milton Hershey Medical Center and St. Joseph Medical Center, submitted claims for payment to the Medicare Program, causing Medicare to make improper payments to Penn State Health. A settlement agreement was entered into on February 28, 2023, in which Penn State Health agreed to pay $1,252,662.28. The full amount was paid on March 1, 2023.
Melinda Bixler owned and operated two businesses; one was a for-profit company, Elder Healthcare Solutions; and a non-profit company, Adult Care Advocates, Inc. From June 2010 through January 2020, the defendant became the financial Power of Attorney and healthcare Power of Attorney for various elderly individuals. She then used those Power of Attorney’s to apply for mortgages and purchases properties using the monies received from the elderly victims. She was ordered to pay restitution in the amount of $147,882.00, which she paid in full on May 25, 2023.
Gordon Raymond conducted a bank scheme at 25 different PNC banks throughout Pennsylvania, Virginia, Indiana, and North Carolina between June 20 – October 2018. The defendant presented fraudulent drivers’ licenses in victims’ names to open a checking/saving account and apply for unsecured loans. He was ordered to pay restitution in the amount of $131,315.96. He made a payment of $101,000.00 on February 14, 2023.
Additionally, the U.S. Attorney’s office in the Middle District of Pennsylvania, working with partner agencies and divisions, collected $2,302,004 in asset forfeiture actions in FY 2023. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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U.S. Attorney Todd Gee Announces Recipients of Attorney General’s Distinguished Service Awards for their Work Related to the Jackson Water CrisisRead the Press Release
Jackson, Miss. – U.S. Attorney Todd Gee announced that two members of his staff were honored with Attorney General’s Distinguished Service Awards at a ceremony held today at the U.S. Department of Justice in Washington D.C. The annual Attorney General’s Awards recognize Justice Department employees and others for extraordinary contributions to the enforcement of our nation’s laws.
“Each of today’s recipients has served with distinction, and in so doing, they have enabled the Justice Department to advance its work on behalf of the American people,” said Attorney General Garland. “Their exceptional leadership, heroism, and dedication have benefited people and communities across the country.
In the Southern District of Mississippi, Civil Division Chief Angela Williams and Assistant U.S. Attorney Mitzi Dease Paige were chosen, along with other team members from the Justice Department’s Environmental Enforcement Section, Office of Environmental Justice, and Community Relations Service, for their work related to the City of Jackson’s water crisis.
The Jackson Safe Drinking Water Act/Clean Water Act team was recognized for its outstanding work engaging with the City of Jackson on both its drinking water and wastewater systems and negotiating two stipulated orders appointing a third-party manager to take over the City’s failing systems.
“The Department of Justice’s work with the City of Jackson and other partners to obtain a third party administrator for the water system has already had a real impact on making Jackson’s water safer,” said U.S. Attorney Todd Gee. “This award reflects the hard work of the DOJ attorneys and other personnel that helped make that happen.”
Two Plead Guilty to Robbing an Armored Truck at A Gas StationRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that James Battle, Jr. (29, Palm Harbor) and Carlos Keanu Smith (28, Largo) have pleaded guilty to Hobbs Act robbery and brandishing a firearm during and in relation to the robbery. Each faces up to 20 years in federal prison for the robbery offenses and a minimum mandatory sentence of 7 years, up to life, for brandishing the firearm. Battle also pleaded guilty to conspiracy to commit a Hobbs Act Robbery, which involves a sentence of up to 20 years in federal prison. Smith is scheduled to be sentenced on March 20, 2024, and Battle is scheduled to be sentenced on May 2, 2024.
According to court documents, on the morning of June 9, 2023, Battle and Smith met for the purposes of robbing an armored truck. They followed the armored truck along its route from Pinellas County to eastern Hillsborough County before eventually reaching a gas station in Ellenton. Florida Department of Transportation toll records show Battle’s vehicle following seconds behind the targeted armored truck that morning. Surveillance video showed the vehicle also following the armored truck to other locations before conducting the robbery at the gas station in Ellenton when the driver returned to his vehicle. Battle and Smith approached the victim with pistols pointed at him, forcing him to the ground. They stole more than $150,000 from the armored truck.
In connection with the same armored truck robbery, Jorge Serrano Espinoza (19, Clearwater), was also recently charged with Hobbs Act Robbery, conspiracy to commit robbery, and aiding and abetting others who brandished firearms during the robbery.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael R. Kenneth. The forfeiture is being handled by Assistant United States Attorney James A. Muench.
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.
Two Baltimore “Triple C” Gang Members Sentenced to More Than 20 Years in Federal Prison for a Racketeering Conspiracy, Including Murders and Attempted MurdersRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Darien Coleman age 23, of Baltimore, to 270 months in federal prison, and sentenced co-defendant Darrell Carter, age 27, of Baltimore to 300 months in federal prison, each followed by five years of supervised release, for a racketeering conspiracy, including murders and attempted murders, related to their participation in the violent street gang known as Cruddy Conniving Crutballs or Triple C, which operated throughout Baltimore. Chief Judge Bredar imposed the sentences on January 29, 2024.
The sentences were announced United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Commissioner Richard Worley of the Baltimore Police Department; and Chief Robert McCullough of the Baltimore County Police Departments.
According to Coleman and Carter’s plea agreements and other court documents, Triple C members engaged in a pattern of criminal racketeering activity between 2015 and 2020, including more than a dozen murders and numerous non-fatal shootings, robberies, and carjackings, in order to promote the reputation of Triple C and to command respect from the neighborhood. Other spin-offs of the gang are “SCL” and recently, “TRD.”
As detailed in the plea agreements, the gang benefitted financially from selling narcotics, murdering drug dealers, taking contract killings, and engaging in street robberies. Triple C members also robbed dice games for cash and occasionally carjacked vehicles. Triple C members and associates used at least 14 firearms to commit crimes, often trading with each other or other groups to avoid detection through ballistic evidence. Members divided the proceeds of illegal activities among those who participated in the crimes, and often contacted each other to commit a robbery if a member needed money. Members of Triple C often critiqued each other after committing crimes regarding ways to improve their performance.
Triple C members routinely used social media to identify and locate victims, to communicate with each other, and to share information concerning possible retaliation for violent crimes committed by gang members. Details of the crimes committed by Triple C members were publicized on social media and thus were well-known to CCC members.
Darien Coleman admitted that he participated in the December 31, 2018 murder of Corey Mosley, during which at least one member of the conspiracy fired a gun, striking and killing Mosley.
Darrell Carter admitted that he participated in the October 27, 2015 murder of Quinton Heard in Baltimore, and the June 1, 2016 attempted murder of A.F. in the 3200 block of Tivoly Avenue in Baltimore, during which at least one member of the conspiracy fired a firearm in an attempt to collect the $10,000 contract on A.F.’s life. In addition, Carter possessed a 9mm handgun loaded with 11 rounds of ammunition on November 12, 2020, in the 2300 block of Harford Road.
In addition to these violent acts, both defendants admitted that they agreed to distribute and possess with the intent to distribute controlled substances, including crack cocaine, on behalf of the racketeering enterprise.
This investigation has led to the guilty pleas of 34 members and associates of Triple C.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is 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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in this investigation and thanked the United States Marshals Service and the Office of the Baltimore City State’s Attorney for their assistance in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorney Patricia C. McLane and Michael C. Hanlon, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/project-safe-neighborhoods-psn.
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Twenty-Year Fugitive Pleads Guilty to Conspiring to Export Defense Articles to IranRead the Press Release
Baltimore, Maryland – En-Wei Eric Chang, age 48, a citizen of the United States and the Republic of Taiwan, residing in Taiwan, pleaded guilty today to a federal conspiracy charge, related to the export of defense materials to Iran. Such materials were embargoed under the Iranian Transactions and Sanctions Regulations (ITSR).
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office.
“National security is a top priority, and we will relentlessly pursue and hold accountable those who put us at risk,” said United States Attorney Erek L. Barron.
As detailed in the plea agreement, the export from the United States of arms, munitions, military aircraft parts, and related components and technology, is strictly controlled. The Munitions List is a catalog of designated “defense articles” which are subject to export and certain import restrictions. Any person who intends to export defense articles on the Munitions List from the United States is required to first obtain a license and must identify in the required license application the ultimate and final destination of the goods. At the time of the conspiracy, it was the policy of the United States to deny licenses, other approvals, and exports of defense articles destined for Iran.
According to Chang’s guilty plea, from January 2002 and March 2003, Chang conspired with David Chu to ship items on the Munitions List to Iran without obtaining the proper licensing. Chu had a business relationship with an Iranian businessman and was the sole individual in contact with the Iranian businessman during the time of the conspiracy. In 2001 Chu became acquainted with Chang through Chang’s work as an electrical component supplier.
According to the plea and other court documents, in January 2002, the Iranian businessman requested that Chu research satellite imagery dealers. Chu asked Chang to facilitate this request, and Chang agreed to do so. Shortly thereafter, Chang emailed a Maryland corporation to acquire high-definition satellite space images of Tehran, Iran for export from the United States to Iran. An undercover government agent based in Maryland ultimately responded to Chang, pretending to be a businessman who could help him acquire the satellite images from a defense contractor. The undercover agent told Chang: “if the items are going for end use in Iran, sending them there would be a violation of U.S. law.” Chang wrote back that the images could be sent to Taiwan, and that “from Taiwan to Iran my friend will take care of it.”
Chang and the undercover agent communicated over serval months regarding the status of the satellite images order. After Chu’s Iranian contact asked Chu to research and source antennas, on March 12, 2002, Chang contacted the undercover agent asking for quotes on antennas and included in his email specific part numbers for cavity-backed spiral antennas with military applications, including related to the detection and surveillance of ground-based radar. These antennas were designated as defense articles on the United States Munitions List. The undercover agent agreed to attempt to source the antennas. Chang admitted that he knew that the acquisition of the antennas from the United States for export either directly or indirectly to Iran without proper licensing, was a violation of the laws of the United States. Chang also knew that he did not have the proper license or authorization.
As detailed in the plea agreement, the undercover agent ultimately quoted prices for various models of antennas and noted that the U.S.- based manufacturer “won’t even accept order without approved export license up front.” Chang repeatedly urged the undercover agent to act faster and on July 19, 2002, Chang wrote: “Please understand our final end user is Iran. ‘the country’ They will keep buying the stuff if we can always deliver . . . The Iran guy promises [my co-conspirator, Chu] a 10 million USD business [per] year if we can really do this.” On July 31, 2002, Chang provided banking information from the undercover agent to Chu to facilitate $6,400 to be transferred to the undercover agent in Maryland as a 50% down payment on the cavity-backed antennas, which would take approximately five months to produce.
From March 2002 through January 2003, Chang kept in regular contact with the undercover agent regarding the antennas and asked the undercover agent for pricing information that he indicated was requested by his “buyer” in Iran for items that Chang indicated his “buyer” was interested in purchasing. The items included: an anti-submarine and surveillance radar system for installation on helicopters and airplanes; military-grade night-vision goggles for use by pilots; helicopters and helicopter engines; ten handheld laser range-finders; and other military items.
By January 2003, the cavity-backed spiral antennas had been produced in the United States. Chang, his co-conspirator, David Chu, and the undercover agent agreed to transfer the cavity-backed spiral antennas in Guam, where Chu could take possession of them and transfer them to Iran. In February 2003, Chu travelled to Guam and took possession of the cavity-backed spiral antennas from the undercover agent, then checked his luggage, which contained the antennas, for a flight from Guam to Taipei, Taiwan. Chu was arrested and his luggage was seized by U.S. authorities, before he could board the flight to Taiwan.
On March 4, 2003, the undercover agent, via email, informed Chang of his true identity and told Chang that he had been indicted in the District of Maryland with conspiracy to export U.S. Munitions List items to Iran, and that his co-conspirator Chu was in the custody of the U.S. Marshals. The undercover agent encouraged Chang to turn himself in. On March 12, 2003, Chang met with U.S. officials in Taiwan who told Chang that he should consider surrendering to the United States on the current charges, but Chang declined to surrender to the United States.
Chang remained a fugitive until his arrest on April 10, 2023, at Rome-Fiumicino International Airport in Italy and subsequent extradition to the United States.
Co-defendant David Chu, age 48, of Monterey Park, California, pleaded guilty to his role in the conspiracy and was sentenced on February 23, 2004, to two years in federal prison, followed by three years of supervised release.
Chang faces a maximum sentence of five years in federal prison for the conspiracy. U.S. District Judge Richard D. Bennett has scheduled sentencing for May 8, 2024 at 11:00 a.m.
U.S. Attorney Erek L. Barron commended HSI and DCIS for their work in the investigation. Mr. Barron also thanked Assistant United States Attorneys Aaron S.J. Zelinsky and Robert I. Goldaris, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Tse Bonito Man Pleads Guilty to Abusive Sexual ContactRead 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 Tom Tso pled guilty to abusive sexual contact. Tso, 85, of Tse Bonito, New Mexico, and an enrolled member of the Navajo Nation, will remain on conditions of release pending sentencing, which has not been scheduled.
A federal grand jury issued a superseding indictment against Tso on May 9, 2023. In his plea agreement, Tso admitted that between Aug. 4, 1998, and Oct. 11, 2000, he committed abusive sexual contact upon a minor under the age of 18. Specifically, he intentionally and directly touched Jane Doe’s genitalia, groin, and inner thigh with an intent to gratify his sexual desires.
At sentencing, Tso faces up to three years in prison, followed by five years of supervised release.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Alexander F. Flores is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
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Trap house drug dealer sent to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 32-year-old Corpus Christi woman has been sentenced for trafficking narcotics, announced U.S. Attorney Alamdar S. Hamdani.
Melissa Rendon pleaded guilty Aug. 4, 2023.
U.S. District Judge Drew B. Tipton has now ordered Rendon to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard evidence regarding Rendon’s aggravated role in the offense, her efforts to obstruct the investigation and her use of her minor daughter to hide evidence from authorities.
After conducting surveillance for a month, on July 7, 2022, law enforcement executed a search warrant at a residence in Corpus Christi where they found several people, but not Rendon. Authorities also found meth, cocaine, heroin, cocaine base (crack) and fentanyl – some packaged for sale – throughout the residence.
The investigation revealed Rendon distributed narcotics from the residence and had recruited a woman to live at the residence and to distribute drugs for her. Law enforcement additionally found a digital scale, baggies and latex gloves within the residence.
On March 2, 2023, authorities witnessed Rendon leaving the residence with four children and drop them off at school. They then conducted a second search. At that time, they recovered cocaine, cocaine base (crack), Ziploc baggies, a digital scale, latex gloves and several pieces of mail addressed to Rendon.
The investigation also revealed Rendon made calls from the jail asking her juvenile daughter to go to her residence, find a white cell phone, change the password and delete everything including all of the pictures, Facebook, texts and Snapchat from the phone.
Rendon will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the Nueces County District Attorney’s Office Criminal Investigation Unit. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.
Tohatchi Man Sentenced to 37 Months in Prison for Domestic AssaultRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Anthony Joe was sentenced to 37 months in prison. Joe, 38, of Tohatchi, New Mexico, and an enrolled member of the Navajo Nation, pled guilty to assault of a spouse, intimate partner, or dating partner by strangling on February 22, 2023.
According to court records, on Aug. 13, 2022, Joe assaulted the victim, Jane Doe, as she was trying to leave Joe’s residence. Joe punched Jane Doe with a closed fist in the back of her head and in her side while she was holding their child, then kicked Jane Doe in the back and pulled her away from the door by her hair. Jane Doe eventually escaped from the residence without her child and ran to a nearby gas station where she called law enforcement.
When Jane Doe was later interview by the FBI regarding the incident, she reported that Joe used his arm to choke her from behind as Jane Doe attempted to leave their shared bedroom and knocked her to the floor. As she tried to get away, Joe used his hands to choke Jane Doe twice, causing her to see black and go limp both times. Jane Doe reported needing time after being choked to catch her breath. Jane Doe received medical treatment for the injuries inflicted by Joe and was diagnosed with contusion and soft tissue injury for the bruising to her neck, back, and face.
Over the next month, Joe harassed Jane Doe, her family, and her co-workers. On Sept. 6, Joe set fireworks off in front of Jane Doe’s home, then fled from officers when they approached him. On Sept. 12, 2022, Joe vandalized Jane Doe’s car and threw rocks at the residence where Jane Doe was staying with her relative, and through the window of a residence where Jane Doe previously lived. Joe also vandalized Jane Doe’s workplace by spray-painting “[Jane] you meth whore” on the building. On Sept. 13, 2022, the FBI found incendiary devices known as “Molotov Cocktails” around the trailer of a man Joe believed Jane Doe was in a relationship with.
Upon his release from prison, Joe will be subject to 3 years of supervised release.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department. Assistant United States Attorney Brittany DuChaussee is prosecuting the case.
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Tohatchi Man Pleads Guilty to Assault Charges in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Eric Chandler Watson plead guilty to one count each of assault with a dangerous weapon and assault resulting in serious bodily injury in Indian Country. Watson, 22, of Tohatchi, and an enrolled member of the Navajo Nation, will remain on conditions of release pending sentencing, which has not been scheduled.
According to court records, on the morning of December. 9, 2022, Watson confronted a family member outside of a shared residence in Tohatchi, New Mexico. The confrontation escalated to a physical altercation, at which time Watson’s uncle, John Doe, stepped in to stop the fight. Watson and John Doe began to fight instead, and John Doe’s parents stepped in to stop that fight. John Doe then went inside of the residence to Watson’s bedroom with the intent of destroying Watson’s PlayStation Video Game Console. Watson came up behind John Doe and repeatedly stabbed him in the back.
John Doe experienced a collapsed lung sustained from the stab wounds. John Doe also sustained other stab wounds to the upper back and neck area, with one stab wound inches away from his spinal cord.
At sentencing, Watson faces up to 10 years in prison.
The Navajo Police Department and the Navajo Department of Criminal Investigation investigated this case. Assistant United States Attorney Mark Probasco is prosecuting the case.
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Three Defendants Charged in Interstate Gun Trafficking SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Erin Keegan, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); Tommy Kalogiros, Assistant Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”); and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a Complaint charging CHRISTEN CHEN, a/k/a “Nauti,” SHAQOYA HALL, a/k/a “Q,” and ZACHARY HAMPTON, a/k/a “J,” with conspiracy to engage in the unlicensed dealing of firearms, firearms trafficking, and interstate transportation of firearms, in connection with their involvement in a scheme to illegally transport firearms from Georgia to New York, among other places, for resale.
SHAQOYA HALL and ZACHARY HAMPTON were arrested on January 30, 2024, in New York, New York. CHRISTEN CHEN was arrested on January 30, 2024, in Staten Island, New York. HALL and HAMPTON were presented before U.S. Magistrate Judge Robert W. Lehrburger and detained. CHEN will be presented later today before Judge Lehrburger.
U.S. Attorney Damian Williams said: “As alleged, these defendants directly contributed to the flow of illegal guns into New York City, endangering communities in this District for little more than financial gain. To anyone who is thinking about illegally selling guns to New Yorkers or illegally bringing guns to New York: we and our law enforcement partners are watching.”
HSI Acting Special Agent in Charge Erin Keegan said: “HSI New York’s Violent Gang Task Force worked collaboratively with the ATF and the NYPD to disrupt the alleged iron pipeline of firearms flooding New York neighborhoods. I commend all agencies involved in this vital partnership, which prevented 13 illegal firearms from potentially making their way into the hands of criminals and gang members.”
ATF Assistant Special Agent in Charge Tommy Kalogiros said: “The unchecked flow of weapons onto our streets is a threat to every single person in NYC. These arrests serve as a notice to those who think they are above the law and can illegally traffic guns into our communities. The men and women of ATF NY will never waiver on our commitment to protect the public and to aggressively target firearms traffickers. The proliferation of illegal guns may be continuous, but law enforcement is united and strong. I thank all the members of the ATF NY Joint Firearms Task Force, HSI, NYPD, and SDNY for their diligent work and tireless dedication to our shared public safety mission.”
NYPD Commissioner Edward A. Caban said: “When investigating the gun violence that plagues our city, the NYPD and our law enforcement partners always look at how the illegal firearms arrived in the five boroughs and who is selling them here – then we devise and execute a strategy to dismantle those schemes. These latest arrests are a prime example of a great plan coming together. I commend everyone involved in this multi-agency effort, from our NYPD investigators to all of our colleagues at the ATF, HSI, and the Office of the U.S. Attorney for the Southern District of New York.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
From at least in or around September 2023, up to and including January 2024, the defendants worked together to obtain firearms in southern states — primarily Georgia —, transport the firearms to New York via car or bus, and resell the firearms in, among other places, New York City (the “Gun Trafficking Scheme”). Over the course of the Gun Trafficking Scheme, the defendants discussed the sale of approximately 40 firearms and successfully sold at least 13 firearms to a confidential informant (the “CI”).
Over the course of the Gun Trafficking Scheme, HAMPTON and CHEN communicated directly with the CI and discussed the potential sale of a variety of firearms including, among other things and as depicted below, semi-automatic handguns, handguns with extended magazines, at least one assault style handgun, and at least one rifle:
On three occasions, CHEN, HAMPTON, and HALL met with the CI to sell firearms. On or about October 16, 2023, CHEN, HAMPTON, and HALL sold one firearm to the CI in Staten Island. On or about October 22, 2023, CHEN and HALL sold the CI four firearms in Staten Island. And, on or about January 30, 2024, HAMPTON and HALL were arrested in New York, New York, while attempting to sell the CI eight firearms.
October 15, 2023, Sale
October 22, 2023, Sale
January 30, 2024, Attempted Sale
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CHEN, 28, of Staten Island, New York; HALL, 24, of Staten Island, New York; and HAMPTON 28, of Augusta, Georgia, are each charged with one count of conspiracy to commit gun trafficking, which carries a maximum sentence of five years in prison, and one count of gun trafficking, which carries a maximum sentence of five years in prison. CHEN and HALL are additionally charged with one count of interstate travel with intent to engage in gun trafficking, which carries a maximum sentence of 10 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of HSI, ATF, and the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorney Ashley C. Nicolas is in charge of the prosecution.
The charges contained in the Complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Tennessee Man Sentenced to Prison for Assaulting Flight Attendant in AustinRead the Press Release
AUSTIN, Texas – A Tennessee man was sentenced in a federal court in Austin to six months in prison for simple assault on an aircraft in the special aircraft jurisdiction of the United States.
According to court documents, on March 20, 2022, Michael Goins, Jr., 35, of Spring Hill, assaulted a flight attendant on a Southwest Airlines flight. The aircraft landed at Austin Bergstrom International Airport and was sitting on the airport apron awaiting the availability of an arrival gate. Goins, a passenger, loudly uttered several expletives during a cell phone call which was overheard by passengers seated near him. A passenger traveling with children was disturbed by the language used by Goins, which led to his aggressive response toward the passenger. During an altercation, Goins intentionally and deliberately pushed his closed fist into a flight attendant’s upper abdomen and pushed her back, causing her pain.
The six-month prison sentence is the statutory maximum. In addition to his imprisonment, Goins was ordered to pay $650.00 in restitution.
“This prison sentence reflects the seriousness of these types of crimes and promotes respect for the law,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Airline passengers and employees should be able to travel safely, and this violent behavior cannot be tolerated.”
"As a passenger on an active flight, Mr. Goins disruptive behavior escalated into a violent outburst directed at a flight attendant,” said Special Agent in Charge Aaron G. Tapp of the FBI San Antonio Field Office. “The FBI is dedicated to ensuring Americans can go to work and travel by plane without the fear of being attacked. We are grateful to our partners at the Austin Police Department for their work on this case – and their ongoing dedication to keeping our citizens safe.”
The FBI and Austin Police Department investigated the case.
Assistant U.S. Attorney Sharon Pierce prosecuted the case.
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Two Individuals Charged with Production of Child Sexual Abuse MaterialRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on January 23, 2024, a federal grand jury returned an indictment against registered sex offender Daniel L. Anderson (age 54) of Milwaukee, Wisconsin, and Chasity S. Evans (age 37) of Ripley, Tennessee (formerly of Milwaukee). The indictment charges Anderson and Evans with production of child sexual abuse material (CSAM), in violation of Title 18, United States Code, Sections 2251(a) and 2251(e). The indictment also charges Anderson with Commission of a Felony Sex Offense by an Individual Required to Register as a Sex Offender, in violation of Title 18, United States Code, Section 2260A.
According to the indictment, Anderson and Evans aided and abetted the repeated production of CSAM of a minor child between February 2023 and June 2023. The child is alleged to have been between the ages of 11 and 12 years old during the production of the CSAM. The indictment further alleges that Evans sent the CSAM to Anderson via cell phone, in exchange for small sums of money via Cash App.
If convicted of producing CSAM, Anderson faces a mandatory 25 years’ imprisonment and up to 50 years’ imprisonment. This enhanced penalty is predicated on Anderson’s 2014 state criminal convictions for child enticement. If convicted of that offense, Evans would face a mandatory 15 years’ imprisonment and up to 30 years’ imprisonment. Each also could be fined up to $250,000 for the production offense. If convicted of committing a felony as a registered sex offender, Anderson would also face a mandatory sentence of 10 years, which would run consecutively to any sentence for producing CSAM.
The Federal Bureau of Investigation (Milwaukee, Wisconsin and Memphis, Tennessee field offices) investigated this case, with the assistance of the Lauderdale County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Abbey M. Marzick.
An indictment contains allegations is only a charge and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government must prove them each guilty beyond a reasonable doubt.
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Springfield Sex Offender Sentenced to 17 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man who is a prior sex offender was sentenced in federal court yesterday for receiving and distributing child pornography within an online group.
Anthony P. Thuro, 41, was sentenced by U.S. District Judge M. Douglas Harpool to 17 years in federal prison without parole, to be followed by a 25-year term of supervised release.
On June 5, 2023, Thuro pleaded guilty to receiving and distributing child pornography. Thuro, a registered sex offender, has two prior felony convictions for statutory sodomy (involving 7-year-old and 13-year-old victims). The court also sentenced Thuro to spend the rest of his life on supervised release following incarceration.
During a law enforcement investigation, the FBI discovered that a user distributed a Mega folder containing 13.7 gigabytes of data, which included numerous videos of child sexual abuse material, to a Kik group. The Mega folder was traced back to Thuro, and IP addresses indicated that Thuro accessed the Mega folder multiple times. According to court documents, those videos in the Mega included depictions of toddlers being sexually abused, prepubescent children subjected to sexual abuse and bondage, and prepubescent children subjected to bestiality.
On Aug. 30, 2022, law enforcement officers executed a search warrant at Thuro’s residence. They seized Thuro’s cell phone, which contained evidence he had accessed the Mega and Kik applications in the past. Investigators also found 36 images of child sexual abuse material that were cached in the gallery application of the phone.
This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the FBI, Homeland Security Investigations, the Greene County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
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, 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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Southern District of Georgia U.S. Attorney’s Office staff presented with Attorney General’s Award for Distinguished ServiceRead the Press Release
WASHINGTON: Staff members from the Southern District of Georgia received recognition today as Attorney General Merrick B. Garland announced the recipients of the 70th and 71st Attorney General’s Awards, honoring Justice Department employees and others for extraordinary contributions to the enforcement of our nation’s laws. Recipients from both 2022 and 2023 were selected from a group of more than 800 nominees.
“Each of today’s recipients has served with distinction, and in so doing, they have enabled the Justice Department to advance its work on behalf of the American people,” said Attorney General Garland. “Their exceptional leadership, heroism, and dedication have benefited people and communities across the country.”
Southern District of Georgia First Assistant U.S. Attorney Tara M. Lyons, along with Paralegal Tracy Long and Victim Witness Coordinators Kellie Wiggins and Iverna Campbell, received the 70th Attorney General’s Award for Distinguished Service, the agency’s second-highest award, along with nine staff members from the Department of Justice Civil Rights Division and the FBI. The award recognizes the investigation and prosecution team in the Ahmaud Arbery case.
“The trial and conviction of the three men responsible for the murder of Brunswick, Ga., resident Ahmaud Arbery was a painstaking, arduous journey for these dedicated investigators and prosecutors, and this prestigious award recognizes their accomplishments,” said U.S. Attorney Steinberg. “We especially are honored that our staff members’ hard work on behalf of the United States delivered a measure of justice for the victim’s family.”
Three Brunswick men – Travis McMichael; his father, Gregory McMichael; and William “Roddy” Bryan – were convicted at trial in February 2022 of violating Ahmaud Arbery’s civil rights, targeting Arbery because of his race as they pursued him through a Brunswick neighborhood. Arbery died after Travis McMichael shot him. The McMichaels were sentenced to life terms in August 2022, while Bryan was sentenced to 35 years in prison. All three also are serving state sentences.
This case was investigated by the FBI and the Georgia Bureau of Investigation, and prosecuted by Assistant U.S. Attorney Tara Lyons of the Southern District of Georgia, and Deputy Chief Bobbi Bernstein and Special Litigation Counsel Christopher J. Perras of the Department of Justice Civil Rights Division.
Smith County man sentenced for federal firearms and drug trafficking violationsRead the Press Release
TYLER, Texas– A Tyler man has been sentenced to federal prison for firearms and drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Juan Espinoza, Jr., 27, pleaded guilty to possessing a firearm after having been previously convicted of a crime of family violence and possession with intent to distribute marijuana and was sentenced to 48 months in federal prison by U.S. District Judge Jeremy D. Kernodle on Jan. 31, 2024.
According to information presented in court, on Feb. 16, 2022, a federal search warrant was executed at Espinoza’s Tyler residence during which officers discovered approximately 4,600 grams of marijuana, 476 grams of Psilocybin, five semi-automatic pistols, a semi-automatic rifle, a shotgun, multiple rounds of ammunition, and $12,145.00 in cash. Espinoza was convicted of a misdemeanor crime of domestic violence in Smith County in 2016 and prohibited by federal law of possessing firearms or ammunition.
This 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.
This case was investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Jim Noble.
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St. John Man Sentenced on Cocaine Possession ConvictionRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced that Calis Sewer, 25, of St. John, was sentenced by Chief Judge Robert A. Molloy to four years of incarceration after pleading guilty to possession with intent to distribute cocaine.
According to court documents, on March 21, 2023, Virgin Islands Police Department officers initiated a traffic stop on Sewer who was driving a Suzuki Vitara registered in his name. During the stop, a drug detection canine alerted to the presence of narcotics and officers later discovered 18 bricks of cocaine concealed in a duffle bag in the trunk of Sewer’s vehicle. Prior to the traffic stop, federal law enforcement agents surveilled Sewer as he walked down the Brown Bay trail, an area known for drug smuggling, towards the beach. Sewer was later observed walking up the trail carrying a black duffle bag. Law enforcement agents maintained surveillance of Sewer as he traveled to his residence and later left with the duffle bag. Sewer was arrested after disembarking the car ferry in Red Hook, St. Thomas.
This case was investigated by Drug Enforcement Administration, U.S. Customs and Border Protection Air and Marine Operations, U.S. Border Patrol, Homeland Security Investigation and Virgin Islands Police Department and prosecuted by Assistant United States Attorney Kyle Payne.Registered Sex Offender Sentenced to Fifteen Years in Federal Prison for Possession of Child Sexual Abuse MaterialRead the Press Release
INDIANAPOLIS- Kenneth Walden, 43, of Indianapolis, has been sentenced to 15 years in federal prison after pleading guilty to possession of child sexual abuse material.
According to court documents, law enforcement officers received a Cybertip from the National Center for Missing and Exploited Children that a suspect had stored child sex abuse material in a Google Photos account connected to his Google and iCloud accounts. Further investigation revealed that the account belonged to Kenneth Walden, who was a registered sex offender.
Investigators discovered that between January 2021, and March 5, 2021, Walden uploaded child sex abuse material to his Google account. Most of the files depicted prepubescent males, some as young as 10- to 12-years old, engaging in sexually explicit conduct, including sexual intercourse. The abuse images collected by the defendant included images and videos depicting sadistic or masochistic conduct, or other depictions of violence against children.
Law enforcement agents searched Walden’s Google account and residence and found more than 600 images of child sexual abuse material in his iPhone and on a SIM card.
At the time of his arrest, Walden was a registered sex offender and had a lengthy criminal history involving sexual misconduct against a child and registration offenses:
- On October 20, 2000, he was convicted in St. Joseph County, Michigan, for Criminal Sexual Conduct 2nd degree, victim under 13, and sentenced to a year in prison.
- On October 2, 2007, he was convicted of being a Child Sex Offender at a public park in Richland County, Illinois, and was sentenced to two and a half years in prison.
- On August 23, 2011, he was convicted of Failing to Report as Sex Offender in Jasper County, Illinois and sentenced to two years in prison.
“This defendant’s choice to seek and collect images of the horrific sexual abuse of children is shocking, but not surprising. For years, this sex offender demonstrated his sexual interest in children and willingness to flout the laws designed to make our communities safer from predators like him,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Trafficking in these images online furthers the abuse inflicted on innocent children and fuels the desires of criminals with sexual interests in children. The serious federal prison sentence imposed here demonstrates that our office is committed to working with all law enforcement agencies to protect our children from those who desire to exploit their trauma for their own sick gratification.”
U.S. Secret Service in partnership with the Indianapolis Metropolitan Police Department investigated this case. The sentence was imposed by U.S. District Court Chief Judge Tanya Walton Pratt. Judge Pratt also ordered that Walden be supervised by the U.S. Probation Office for life following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who prosecuted this case.
This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a multiagency task force led by the Indiana State Police that investigates and prosecutes persons who use the internet to sexually exploit or entice children. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse. Visit https://www.in.gov/isp/icactf/ to learn more about their efforts.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
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