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Thursday 14 December 2023
Parkersburg Man Pleads Guilty to Tax EvasionRead the Press Release
CHARLESTON, W.Va. – Brian E. Drake, 56, of Parkersburg, pleaded guilty today to tax evasion. Drake admitted to evading payroll and corporate income taxes while the owner and operator of River City Chem Dry (RCCD).
According to court documents and statements made in court, from at least 2008 and continuing through 2021, Drake owned and operated RCCD, which provided general building and specialty contracting services throughout West Virginia. Drake admitted that as an employer, he had a legal responsibility to collect and pay over to the IRS payroll taxes withheld from his employees’ wages and complete and file IRS Form 941. Drake further admitted that he knew that after he reorganized RCCD as a C corporation in 2012, he was required to pay corporate income taxes on earned income and complete and file IRS Form 1120 on behalf of RCCD every year.
Beginning no later than 2005, Drake amassed a significant tax debt due to unpaid personal income taxes. Drake admitted that while his tax problems began as personal in nature, they later extended to RCCD. Drake’s tax delinquencies grew exponentially from 2005 through 2016, despite IRS attempts to collect his outstanding balances and work with him to help him attain compliance.
Drake admitted that he willfully evaded payment of $299,765 in payroll taxes, including federal taxes and the employer-due portion of Social Security and Medicare, for reported wages paid to RCCD employees from at least 2016 through 2019. Drake further admitted that he evaded the assessment of $347,054.87 in payroll taxes by routinely paying RCCD employees substantially in cash from at least 2017 and continuing through 2021. Employees would receive paychecks reflecting a portion of their hourly wages and withheld taxes each payday along with envelopes containing cash for the hours they worked for which no federal taxes were withheld or paid over to the IRS.
Drake also admitted that he failed to report money earned by RCCD for tax year 2016 and continuing through tax year 2021 and did not file corporate income tax returns for RCCD for tax years 2019, 2020, and 2021 to evade payment of corporate income taxes.
Drake is scheduled to be sentenced on May 2, 2024 and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine. Drake also owes restitution. The tax loss from Drake’s conduct exceeds $646,819.87
United States Attorney Will Thompson made the announcement and commended the investigative work of the Internal Revenue Service (IRS).
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorneys Erik S. Goes and Ryan Blackwell are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-192.
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Owner of Maryland Paving and Construction Company Sentenced to Prison for Tax EvasionRead the Press Release
A Maryland man was sentenced today to 13 months in prison for evading his federal income taxes.
According to court documents and statements made in court, Jerry Lee Redman, of Severn, siphoned money from his own paving and construction business, Redman Services Inc. (RSI), in the form of weekly cash withdrawals that he then used to pay for personal expenses, including alcohol and gambling. Redman did not report these cash withdrawals as income on his personal tax returns for the years 2014 through 2018. He also caused some of these cash withdrawals to be falsely deducted as business expenses on RSI’s corporate tax returns. During these same years, Redman directed some of RSI’s clients to write checks payable directly to Redman instead of RSI and deposited the checks into his personal bank account. As a result, these checks were not reported as income on RSI’s corporate returns. In total, Redman’s scheme caused a tax loss to the IRS of over $660,000.
In addition to the term of imprisonment, U.S. District Judge Julie Rubin for the District of Maryland ordered Redman to serve one year of supervised release and to pay $894,338.04 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Melissa S. Siskind and Christina M. Grimes of the Tax Division prosecuted the case.
Owner and Senior Executive of New York Contracting Company Charged for Paying Bribes to Obtain Construction Contracts from A Fortune 500 CompanyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the unsealing of charges against TROY CARUSO, the owner and chief executive officer of a commercial construction and contracting company headquartered in New York, New York (the “Contracting Company”), and JOHN NOLAN, a senior executive at the Contracting Company, for their participation in a scheme to bribe a senior project manager at a Fortune 500 real estate services firm in order to obtain contracting work. CARUSO was arrested this morning in Melville, New York, and NOLAN was arrested this morning in Brooklyn, New York. Both CARUSO and NOLAN are expected to be presented in federal court in Manhattan later today.
U.S. Attorney Damian Williams said: “As alleged, Troy Caruso and John Nolan bribed a senior-level individual at a Fortune 500 company to award their company favorable contracts, resulting in the parties involved fraudulently obtaining millions. In the construction world, fair bidding is crucial to the success or downfall of a business, and kickback schemes like the one we allege in this case can undermine that process. Those attempting to corrupt the bidding process by gaining an unfair advantage over their law-abiding counterparts will face criminal prosecution.”
According to the allegations in the Indictment:[1]
From at least in or about February 2021, up to and including in or about September 2023, CARUSO and NOLAN agreed to pay and did pay kickbacks to an employee of a global and publicly traded commercial real estate services company (the “Real Estate Firm”) in exchange for assistance and preferential treatment so that the Contracting Company would be awarded projects managed by the Real Estate Firm (the “Kickback Scheme”).
In or about March 2021, CARUSO and NOLAN were introduced by an individual (“CC-1”) to a senior project manager at the Real Estate Firm (“CC-2”). CC-2 managed the process by which contracting companies bid for and were awarded contracts to work on construction projects for various of the Real Estate Firm’s clients. Beginning in or about March 2021 because of the Kickback Scheme, CC-2 took a series of actions CC-2 otherwise would not have taken to ensure that the Contracting Company was awarded a pre-construction contract and a construction contract relating to a certain project (“Project-1”), which was managed by the Real Estate Firm on behalf of its client, a health services business that provides hospital, medical, and other health services to patients. For example, CC-2 ensured that the Contracting Company was on the Real Estate Firm’s “bid list” so that it could submit bids relating to Project-1 that it otherwise could not have submitted. CC-2 also provided non-public information to CARUSO and NOLAN about the bidding process and recommended the Contracting Company for both the pre-construction contract and the construction contract relating to Project-1. As a result of the Kickback Scheme and CC-2’s actions, the Contracting Company was awarded the pre-construction and construction contracts for Project-1, the latter of which was valued at approximately $3.55 million (to be paid to the Contracting Company).
In exchange for CC-2’s assistance and preferential treatment, CARUSO and NOLAN agreed to pay kickbacks to CC-2 in the amount of approximately one percent of the construction value of any project managed by the Real Estate Firm that resulted in a contract award to the Contracting Company. Accordingly, CARUSO and NOLAN agreed to pay CC-2 approximately $35,500 for Project-1 and ultimately paid CC-2 approximately $33,000 in kickbacks for CC-2’s assistance on Project-1. Most of these payments were made in cash at locations around New York City. CARUSO and NOLAN also paid CC-1 approximately $15,000 for CC-1’s assistance in the Kickback Scheme, which included connecting CC-2 with CARUSO and NOLAN.
CARUSO and NOLAN attempted to obtain additional contracts from the Real Estate Firm with CC-2’s assistance as part of the Kickback Scheme. Between in or about 2022 and in or about 2023, in exchange for CARUSO and NOLAN’s promise of payment for any contract awarded to the Contracting Company, CC-2 provided CARUSO and NOLAN with assistance relating to two additional construction projects managed by the Real Estate Firm that did not result in contract awards to the Contracting Company.
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CARUSO, 56, of Smithtown, New York, and Ludlow, Vermont, and NOLAN, 42, of Brooklyn, New York, are each charged with one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, which each carry a maximum sentence of 20 years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Special Agents and the Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams also thanked the Federal Bureau of Investigation for their assistance in the investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jane Kim and Nicholas Folly are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Orthopedic Surgeon Convicted of Health Care FraudRead the Press Release
BOSTON – A Canton orthopedic surgeon has been convicted by a federal jury in Boston for his role in a health care fraud scheme.
Dr. Olarewaju James Oladipo, 60, of Canton, was convicted on Dec. 12, 2023 of 10 counts of health care fraud. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 12, 2024 at 1 pm. Oladipo was arrested and charged in March 2022.
“In the midst of an opioid epidemic that is claiming thousands of lives, Dr. Oladipo deliberately exploited the medical system for financial gain, becoming one of the state’s most prolific prescribers of opioids,” said Amanda Strachan, Chief of the U.S. Attorney’s Office’s Criminal Division. “Our office remains steadfast in its commitment to aggressively pursue those who compromise the sanctity of our health care system – especially those who use opioids to fuel their schemes.”
“Dr. Oladipo is no longer just one of the top prescribers of highly addictive opioids in Massachusetts—he is now a convicted felon—for cheating federally funded health care programs, taxpayers, and patients, for work he did not do,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The unscrupulous tactics used in this scheme are what drive our investigators on a daily basis to combat healthcare fraud.”
“By submitting fraudulent medical claims and falsifying patient records, Dr. Oladipo put greed and personal gain above his professional responsibilities,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “This conviction underscores the commitment of HHS-OIG and our law enforcement partners to protecting the integrity of taxpayer-funded federal health care programs and holding criminals accountable for their actions.”
“The U.S. Postal Service Office of Inspector General is dedicated to protecting the public’s safety and the U.S. Postal Service. The special agents of the USPS OIG will tirelessly investigate those who choose to defraud federal benefit programs and put profits above the safety of their patients. This verdict is a clear message that the USPS OIG is dedicated to rooting out corruption and bringing those responsible for these crimes to justice. The USPS OIG is thankful for the great longstanding relationships we have developed with our law enforcement partners and the U.S. Attorney’s Office to combat healthcare frauds,” said Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General (USPS-OIG), Northeast Area Field Office.
From approximately January 2016 through December 2019, Oladipo devised and executed a scheme to defraud health care benefit programs by falsely billing for patient visits. Specifically, Oladipo used billing codes for more complex—and thus more expensive—services that were not provided (a practice that is sometimes referred to as “upcoding”). Oladipo falsified medical records of patient visits to reflect examinations and services that were not performed. During the four-year period, Oladipo frequently billed for more than 60 patients per day and sometimes more than 90 patients per day. The result was that many, if not most, of Oladipo’s patient visits on such days could have only lasted five minutes or less. However, Oladipo used billing codes that typically corresponded to visits of 15, 25, 30, or even 45 minutes. Additionally, Oladipo ensured this high flow of patients to his practice by prescribing powerful, highly addictive opioids at a rate that made him one of the top prescribers of such drugs in Massachusetts.
The charges of health care fraud and conspiracy to commit health care fraud each provide for a sentence of up to 10 years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The U.S. Attorney’s Office for the District of Massachusetts, FBI SAC Cohen, HHS-OIG SAC Coviello and USPS-OIG SAC Modafferi made the announcement. Valuable assistance was provided by the Massachusetts Attorney General’s Office; the National Insurance Crime Bureau; and the Drug Enforcement Administration. Assistant U.S. Attorneys Evan D. Panich and William B. Brady are prosecuting the case.
Ocala Woman Sentenced to Two Years in Federal Prison for Theft of COVID Relief FundsRead the Press Release
Ocala, Florida – Senior United States District Judge Gregory A. Presnell has sentenced Passion Lajodia Jackson (31, Ocala) to two years in federal prison for wire fraud related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act. As part of the judgment, Jackson was ordered to forfeit $20,132, which represents the proceeds obtained from the offense. Jackson had pleaded guilty on September 11, 2023.
According to court records, on April 2, 2021, Jackson electronically submitted a Paycheck Protection Program (PPP) loan application to the Small Business Administration for an incorporated business. Her application included false statements. She also provided a fictitious Internal Revenue Service document in support of her application. Based on the fraudulent information, Jackson unlawfully received a PPP loan in the amount of $20,132 on April 6, 2021. The loan was electronically wired into her bank account. Within 30 days of receiving the loan, Jackson had withdrawn the funds in cash.
This case was investigated by the Federal Bureau of Investigation and the City of Ocala Police Department. It was prosecuted by Assistant United States Attorney Hannah Nowalk.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.
Notice to Victims of the Sentencing of Former Nikola Motors CEO Trevor MiltonRead the Press Release
The U.S. Attorney’s Office for the Southern District of New York is providing notice to individuals and entities that bought and sold stock of Nikola Corporation (ticker NKLA) or VectoIQ (tickers VTIQU, VTIQ, and VTIQW) between March and September 2020 of the upcoming sentencing of TREVOR MILTON, the founder and former CEO of Nikola. In October 2022, MILTON was convicted by a jury of securities fraud and wire fraud in connection with his scheme to defraud and mislead investors about the development of products and technology by Nikola.
The sentencing is scheduled for December 18, 2023, at 11:00 a.m. before the Honorable Edgardo Ramos in Courtroom 619 at the Thurgood Marshall United States Courthouse, 40 Foley Square, New York, NY 10007. The proceeding is open to the public. MILTON faces a maximum term of 60 years in prison, and the sentence will be determined by the court. If you believe you are a victim of TREVOR MILTON and have questions about the sentencing or wish to submit a victim impact statement, please email: [email protected].
Ninth Defendant Pleads Guilty in Large-Scale Sacramento Cocaine and Heroin Trafficking ConspiracyRead the Press Release
SACRAMENTO, Calif. — Tyrone Anderson, 43, of Sacramento, pleaded guilty today to one count of conspiracy to traffic at least 5,000 grams of cocaine and 280 grams of cocaine base and one count of conspiracy to traffic heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Anderson is among the 15 federal defendants arrested in 2021 and charged in a 45-count indictment for trafficking narcotics as part of a DEA-led multi-agency operation targeting cocaine and heroin traffickers in North Sacramento. Anderson was intercepted during wiretaps in 2018 and 2019 trafficking kilograms of cocaine and heroin and was arrested in possession of two firearms.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Forest Service, the U.S. Postal Inspection Service, the Bureau of Land Management, the California Department of Corrections and Rehabilitation, the California Department of Justice, the California Highway Patrol, the Sacramento County Sheriff’s Office, and the Sacramento Police Department. Assistant U.S. Attorneys Cameron L. Desmond and Aaron D. Pennekamp are prosecuting the case.
Anderson is scheduled to be sentenced on March 7, 2024, by U.S. District Judge Troy L. Nunley. Anderson faces at least 10 years and a maximum of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
On March 16, 2023, Arlington Caine, 48, of Rio Linda, was sentenced to 22 months in prison on two counts of using a communication facility to facilitate a drug trafficking offense.
On Dec. 8, 2022, Michael Hampton, 57, of Vallejo, was sentenced to 60 months in prison for to conspiracy to distribute and possess with intent to distribute at least 500 grams of cocaine.
On Nov. 17, 2022, Charles Carter, 36, of Sacramento, was sentenced to 70 months in prison for conspiracy to distribute and to possess with intent to distribute at least 500 grams of cocaine.
On Sept. 29, 2022, Jason Tolbert, 45, of Sacramento, was sentenced to 57 months in prison for possession with intent to distribute cocaine.
On Feb. 22, 2023, Dwight Haney, 52, of Sacramento pleaded guilty to two counts of using a communication facility to facilitate a drug trafficking offense. Haney is scheduled to be sentenced on Feb. 8, 2024.
On Jan. 26, 2023, Jerome Adams, 56, of North Highlands, pleaded guilty to two counts of using a communication facility to facilitate a drug trafficking offense. Adams is scheduled to be sentenced on Jan. 18, 2024.
On Dec. 1, 2022, Bobby Conner, 51, of Sacramento, pleaded guilty to two counts of using a communication facility to facilitate a drug trafficking offense. Conner is scheduled to be sentenced on Jan. 18, 2024.
On Nov. 17, 2022, Andre Hellams, 40, of North Highlands, pleaded guilty to two counts of using a communication facility to facilitate a drug trafficking offense. Hellams is scheduled to be sentenced on Feb. 8, 2024.
Charges are pending against the following defendants: Maurice Bryant, 51, of Antelope; Yovanny Ontiveros, 41, of Sacramento; Alex White, 61, of North Highlands; Steven Hampton, 61, of Sacramento; Wilmer Harden, 52, of Elk Grove; and Mark Martin, 62, of Sacramento. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. The Sacramento Strike Force is a co‑located model that enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
New York Resident Pleads Guilty to Federal Drug Trafficking ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – MELVIN CONTRERAS, age 33, a resident of Bronx, New York, pled guilty on December 7, 2023 to conspiracy to distribute and possess with intent to distribute a quantity of cocaine hydrochloride, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, on May 2, 2022, a Louisiana State Trooper conducted a traffic stop of a 2005 Peterbilt tractor-trailer bearing a New Jersey license plate on Interstate 12 East to perform a motor carrier inspection. The trooper identified CONTRERAS as the driver of the tractor and Pedro Sarante as the passenger in the sleeper area of the tractor-trailer.
The trooper interviewed both vehicle occupants regarding their itinerary and cargo. Neither of them could identify the cargo or detail their itinerary. Troopers conducted a consensual search of the vehicle and seized three (3) rolling duffel bags containing approximately seventy-four (74) kilograms of cocaine from the sleeper area of the tractor-trailer. The troopers arrested both CONTRERAS and Sarante.
In a post-arrest interview, Sarante informed law enforcement that he and CONTRERAS were hired to travel from New York to Baytown, Texas to pick up a load of narcotics and were to be paid $1,000.00 per kilogram when they delivered the drugs to Newark, New Jersey.
This case was investigated by the Drug Enforcement Administration and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.
New York City Police Officer Charged with Sex Offenses Relating to MinorsRead the Press Release
A four-count indictment was unsealed today in federal court in Brooklyn charging Christopher Terranova, a New York City police officer, with attempting to exploit children and coercion and enticement of a minor. In at least one instance, Terranova is alleged to have used his position as a police officer to gain access to a victim who had previously been the victim of a crime. Terranova was arrested this morning and will be arraigned later today before United States Magistrate Judge Marcia M. Henry.
Breon Peace, United States Attorney for the Eastern District of New York, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.
“The defendant allegedly preyed upon vulnerable youth in the same community he was sworn to protect,” stated United States Attorney Peace. “Protecting minors from those who violate their position of trust will always be a priority of this Office. I urge parents and caregivers to have conversations with their children about the dangers of communicating online with strangers and individuals who seek to exploit them.”
Mr. Peace expressed his appreciation to the New York City Police Department's Internal Affairs Bureau and the Richmond County District Attorney’s Office for its significant cooperation and assistance during the investigation.
“The FBI takes crimes against children seriously—even more so when it involves someone who took an oath to serve and protect, and whom the public holds to a higher standard,” stated FBI Assistant Director-in-Charge Smith. “The damage done by Terranova’s alleged depravity will likely outlast any punishment he ultimately receives. The FBI is dedicated to doing the work to restore public faith in law enforcement when individuals attempt to use the badge to hide their illegal behavior. We thank the U.S. Attorney’s Office for the Eastern District of New York and our law enforcement partners for their efforts in this case.”
As set forth in the indictment and other court documents, Terranova is charged with using social media to engage in sexually explicit conversations with underage boys and attempting to entice those victims into taking sexually explicit photographs of themselves and sharing them with the defendant. Terranova used popular social media applications, such as Snapchat, to message with underage boys whom he encountered socially or through his job as a police officer. After establishing a relationship with the boys, Terranova solicited them for nude photographs. On at least one occasion, in the guise of giving a boy a ride home from a party, Terranova brought the boy to a secluded location where he directed the victim to engage in sex acts with him.
Between March 2023 and May 2023, the defendant targeted a 15-year-old boy (John Doe 3) who was the victim of a robbery. After viewing John Doe 3’s personal information in an NYPD database, Terranova messaged the victim’s personal phone under the pretense of checking on him after the robbery. The defendant wrote, “it’s Chris Terranova the cop you met at the 121 [Precinct] that day with mom, i just wanted to reach out to see if you were doing ok after the incident, I hate seeing these things happen to good Guys like yourself.” Terranova then connected with John Doe 3 via social media and attempted to engage him in conversation about sexual activity and pornography. After sending John Doe 3 a sexually explicit photograph of himself, Terranova messaged the victim: “See it’s nothing[.] Your turn[.]”
Anyone with relevant information is asked to contact the FBI at tips.fbi.gov or 212-384-1000.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Terranova faces a mandatory minimum sentence of 15 years’ imprisonment and a maximum sentence of life imprisonment.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Lauren Howard Elbert and Rachel A. Bennek are in charge of the prosecution.
The Defendants:
Christopher Terranova
Age: 33
Staten Island, New YorkE.D.N.Y. Docket No. 21-CR-516 (KAM)
New Britain Man Sentenced to Federal Prison for Stealing Cash and Cigarettes in Month-Long Robbery SpreeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that GILBERTO DELEON, 57, of New Britain, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 34 months of imprisonment, followed by three years of supervised release, for committing eight robberies of convenience stores and smoke shops in Connecticut in 2022.
According to court documents and statements made in court, between February 27 and March 16, 2022, Deleon and two associates, using BB guns that are designed to appear similar to real firearms, robbed the following retail locations of cash, cigarettes and other items:
- February 27 – Scott’s Village Mobil Gas Station, 843 Farmington Avenue, Farmington
- March 2 – Mystic Mobil Gas Station, 66 Whitehall Avenue, Mystic
- March 3 – Shell Gas Station, 168 Bridge Street, East Windsor
- March 3 – Food Bag, 960 Meriden Waterbury Turnpike, Southington
- March 5 – Valero Gas Station, 1 Main Street, Ellington
- March 5 – Sunoco Gas Station, 446 Bloomfield Avenue, Windsor
- March 8 – Smoker’s Discount World, 636 Silas Deane Highway, Wethersfield
- March 16 – Cove Smoke Market, located at 841 Cove Road, Stamford
During the robbery in Farmington on February 27, 2022, Deleon, who was serving as a “lookout,” took a banana off of the counter. When he exited the store, surveillance cameras recorded Deleon peeling and eating the banana, and then disposing the banana peel in a receptacle near the gas pumps. Investigators seized the banana peel and submitted it laboratory testing, which returned a match for Deleon’s DNA.
Deleon has been detained since his arrest on April 19, 2022. On October 18, 2022, he pleaded guilty to conspiracy to commit Hobbs Act Robbery.Steven Galarza, of Seymour, and Efrain Deleon, of New Britain, also participated in these robberies and pleaded guilty to related charges. On July 20, 2023, Galarza, who also committed three additional robberies in Connecticut, New York, and New Hampshire, was sentenced to 78 months of imprisonment. Efrain Deleon awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation, Connecticut State Police, and the Farmington, Stonington, East Windsor, Southington, Windsor, Wethersfield, Stamford, New Britain, Salem (N.H.), and Somers (N.Y.) Police Departments. The case is being prosecuted by Assistant U.S. Attorney Brendan Keefe.
Neshoba County Man Pleads Guilty to Possession with Intent to Distribute over 50 Grams of MethamphetamineRead the Press Release
Jackson, Miss. – A Neshoba County man pleaded guilty to possessing over 50 grams of methamphetamine with intent to distribute.
According to court documents, on April 28, 2022, Darrell E. McBeath, 38, distributed over 50 grams of methamphetamine near the Pearl River Community of the Mississippi Band of Choctaw Indians. McBeath was indicted by a federal grand jury in September 2023.
McBeath is scheduled to be sentenced on April 3, 2024, and faces a maximum penalty of 40 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd Gee, Regional Agent in Charge Whitney Woodruff of the Bureau of Indian Affairs, and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration made the announcement.
The Choctaw Police Department, the U.S. Department of Interior Bureau of Indian Affairs, and the Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Kevin J. Payne and Special Assistant U.S. Attorney Brian K. Burns prosecuted the case.
Monmouth County Man Sentenced to Five Years in Prison for Laundering Money for Black Axe in South AfricaRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced to 60 months in prison for laundering money on behalf of the Cape Town Zone of Black Axe, U.S. Attorney Philip R. Sellinger announced today.
Andrew Suarez, 30, of Middletown, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an indictment charging him with money laundering conspiracy. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From August 2017 through December 2017, Suarez worked with conspirators to launder money to entities in the Cape Town, South Africa, area, including to an account in the name of Abravoo Trading Company, an entity controlled by a founding member of the Cape Town Zone of Black Axe. Black Axe members were responsible for widespread internet-based fraud schemes.
Suarez opened up bank accounts in the United States, which were then used to conceal money obtained through business email compromises and other fraud schemes. Suarez transferred the proceeds of the fraud schemes to other U.S. bank accounts and wired proceeds to bank accounts in Cape Town, South Africa. To avoid detection, Suarez changed the information on some of his bank accounts, so the accounts listed the name and address of a victim. The total loss amount attributed to Suarez’s conduct is approximately $525,000.
In addition to the prison term, Judge Shipp sentenced Suarez to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, Red Bank Office, under the direction of Special Agent in Charge James E. Dennehy in Newark, and the U.S. Secret Service’s Newark Division, under the direction of Special Agent in Charge Aaron Hatley. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, for its assistance in the case.
The government is represented by Assistant U.S. Attorney Richard G. Shephard of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Missouri Woman Sentenced for Fraudulently Applying for $168,000 Pandemic LoanRead the Press Release
CAPE GIRARDEAU – A woman who fraudulently applied for a $167,997 pandemic loan for a Poplar Bluff, Missouri business that she did not run or own was sentenced Thursday to six months in prison.
U.S. District Judge Stephen N. Limbaugh Jr. also ordered Maxine Michelle Burns, 44, of Willow Springs in Howell County, Missouri, to repay the money. Burns will be on supervised release for five years after she gets out of prison.
Burns applied for a Paycheck Protection Program loan from the Small Business Administration on Jan. 20, 2021, using the name of the owner of a residential treatment facility in Poplar Bluff without authorization. She also used the owner’s signature stamp, her plea says. After the loan was granted, Burns used the money to buy vehicles for herself and pay for vacations. The loan was forgiven after Burns falsely claimed that she’d used the money for payroll and other permissible purposes.
“This case highlights a partnership between the United States Secret Service and the Butler County Sheriff’s Department to aggressively target individuals who have taken advantage of federal pandemic programs,” said Special Agent in Charge Travis Gibson of the U.S. Secret Service - St. Louis Field Office.
Burns pleaded guilty in U.S. District Court in Cape Girardeau in July to bank fraud and making false statements to a financial institution.
This case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Timothy Willis prosecuted the case.
Anyone with information about pandemic fraud should call the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or report via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Minneapolis Man Pleads Guilty to Wire Fraud in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – A Minneapolis man has pleaded guilty to his role in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced U.S. Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, Ahmed Sharif Omar-Hashim, also known as Salah Donyale, 40, admitted that from April 2020 through January 2022, he knowingly participated in a scheme to defraud the federal child nutrition program, a program designed to provide free meals to children in need. Omar-Hashim and his co-conspirators obtained, misappropriated, and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to underprivileged children.
According to the defendant’s guilty plea and court documents, in September 2020, the defendant created a company called Olive Management Inc., under the sponsorship of Feeding Our Future. Olive Management purported to operate a federal child nutrition program site in St. Cloud, Minnesota that served meals to 3,000 children a day, seven days a week. From September 2020 to September 2021, the defendant and his co-conspirators fraudulently claimed to have served more than 1.6 million meals to children at the Olive Management site. In support of these claims, the defendant prepared and submitted fake meal count sheets and invoices. Conspirators also submitted a fake attendance roster purporting to list the names of 2,040 children who attended the Olive Management site’s “after-school program.” Of the approximately 2,040 names on the list, only approximately 20 matched the names of children attending school in the St. Cloud Public School District. Based on these fraudulent claims, Omar-Hashim and his co-conspirators received approximately $7,490,711 in Federal Child Nutrition Program reimbursements for meals purportedly served to children at the Olive Management site.
Hashim-Omar pleaded guilty yesterday in U.S. District Court before Judge Nancy E. Brasel to one count of wire fraud. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Chelsea A. Walcker are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
Maryland Man Sentenced to 41 Months in Prison for Fraudulently Obtaining More Than $2 Million in COVID-19 Relief FundsRead the Press Release
NEWARK, N.J. – A Maryland man was sentenced today to 41 months in prison for illegally obtaining more than $2 million in COVID-19 relief funds, U.S. Attorney Philip R. Sellinger announced today.
Mohamed Kamara, 43, of Greenbelt, Maryland, previously pleaded guilty by videoconference before U.S. District Judge Esther Salas to two counts of an indictment charging him with wire fraud and conspiracy to commit wire fraud. Judge Salas imposed the sentence today in Newark federal court.
U.S. Attorney Philip R. Sellinger“The defendant was sentenced today for submitting falsified applications to the government to obtain business loans to which he was not entitled. These relief programs were set up to provide financial help to Americans who were struggling to cope with the COVID-19 pandemic. Trying to turn them into a cash machine for personal benefit will only earn you what this defendant got today – a prison sentence.”
“Criminals have shown over and over again they will find ways to steal money that isn't theirs in times of crisis, like a hurricane, war, and in this case COVID,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Kamara admitted he lied when applying for federal loans meant for struggling business owners who were forced to close their doors during the height of the pandemic. Fraudsters should stop assuming with so much red tape, and so much money being offered that they won't get caught. We found Kamara, and we'll continue to find others who thought the same thing.”
According to documents filed in the case and statements made in court:
From March 2020 to October 2020, Kamara and others made fraudulent applications to the Small Business Administration (SBA) for Economic Injury Disaster Loans (EIDL) using information belonging to other individuals and entities without their knowledge and consent. They also opened bank accounts using fraudulent documents. Kamara and his conspirators caused the SBA to grant fraudulent applications and send the proceeds of those loans to the fraudulent bank accounts by wire communication. Kamara then deposited or attempted to deposit checks from fraudulent bank accounts into a bank account in his name. Kamara and his conspirators fraudulent EIDL applications caused the SBA to provide more than $750,000 in EIDLs.
From January 2020 to September 2020, Kamara also submitted fraudulent applications to the state of New Jersey and six other states for unemployment insurance benefits using the names, dates of birth, and/or Social Security numbers of other individuals. The states provided more than $1 million, including funds to an account Kamara controlled, in response to these fraudulent applications.
In addition to the prison term, Judge Salas sentenced Mohamed to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Jonathan Mellone in New York, with the investigation leading to the sentencing. He also thanked the FBI Baltimore Field Office; the Small Business Administration, and the New Jersey Department of Labor & Workforce Development for their assistance.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Maryland Man Pleads Guilty to Second Degree Murder While Armed for the Deadly Shooting of a 19-Year OldRead the Press Release
WASHINGTON – David Botchway, 20, of Gwynn Oak, MD, pleaded guilty, on December 13, 2023, to second degree murder while armed for the fatal shooting of 19-year-old Andre Baker, of Washington, D.C. The announcement was made by U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Superior Court Judge Rainey Brandt scheduled a sentencing hearing for March 8, 2024. Botchway faces a sentencing range of 16 to 20 years in prison.
According to the government’s evidence, the night of August 5, 2023, Mr. Baker and two friends were hanging out in front of a bus stop in the 1200 block of U Street Northwest after enjoying a night out in the U Street neighborhood. At around 5:01 a.m., Botchway approached the group and without warning or any provocation, pointed the gun at Mr. Baker and shot him multiple times in the head and torso. Mr. Baker died a short time later. One of the bullets also grazed one of the victim’s friends. Botchway fled on foot until officers, who were on routine patrol and heard the gunshots, observed the defendant fleeing on foot. After a short foot chase, officers apprehended Botchway at the corner of 12th and T Streets, Northwest. A .40 caliber Glock 22 handgun with an extended magazine was found on the defendant at the time of his arrest. The murder was also captured on several surveillance cameras in the area.
This case was investigated by the Metropolitan Police Department.
The case is being prosecuted by Assistant U.S. Attorney Nebiyu Feleke of the Homicide section of the U.S. Attorney’s Office for the District of Columbia.
Man Who Stole 37 Firearms Sentenced to 10 Years in PrisonRead the Press Release
Lubbock man who committed a burglary of a Lubbock Federal Firearms Licensee (FFL) sentenced to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
David Lara, 57, was charged via indictment in June 2023 and pleaded guilty to theft of firearms from a FFL in August 2023. Mr. Lara was sentenced today to 120 months in federal prison before U.S. District Judge James Wesley Hendrix.
According to court documents, during the summer of 2020 there were numerous burglaries of FFLs in and around Lubbock. On June, 28, 2020, Lara and another individual entered Gebo’s Distributing Inc. by prying back the sheet metal on the side of the building and gained access to the building through a storage area attached to the building.
Once inside the building, the individuals began breaking out the glass displays with a sledge hammer, removed 37 firearms from the cases and placed them in a bag. The bag containing the firearms was eventually dropped while they were fleeing the scene, along with gloves and ski masks they wore during the burglary. The gloves were recovered by the Lubbock Police Department and submitted for forensic analysis. DNA results were a match for Lara.
When interviewed, Lara admitted to committing the burglary.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives, with assistance from the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.
Man Sentenced to 25 Years in Prison for Paying Philippine Sex Trafficker to Live-Stream Child Sex AbuseRead the Press Release
A Maine man was sentenced today to 25 years in prison for the production and distribution of child sexual abuse material (CSAM) depicting a minor in the Philippines.
According to court documents, Joseph Daniel Zoll, 63, of Sanford, shared CSAM with a child sex trafficker in the Philippines and paid the trafficker to sexually abuse a prepubescent minor over a live-streaming videochat platform. For around two years, Zoll communicated with the trafficker and repeatedly instructed the trafficker to sexually abuse the minor over live-streaming video calls. Zoll engaged in similar conduct with multiple individuals in the Philippines over the same platform. In addition, Zoll frequently recorded the live-streaming video calls, which he would then show to other individuals when instructing them to sexually abuse children during their own calls.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Darcie N. McElwee for the District of Maine, and Special Agent in Charge Michael J. Krol of Homeland Security Investigations (HSI) New England made the announcement.
HSI New England investigated the case.
Trial Attorney William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Craig M. Wolff for the District of Maine prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Sentenced to 30 Years in Federal Prison for Armed Robbery and Shooting at Pensacola BarRead the Press Release
PENSACOLA, FLORIDA – Quinton L. Pete, 35, of Ocala, Florida, was sentenced to 30 years in federal prison, for Attempted Hobbs Act Robbery and Possession of a Firearm by a Convicted Felon. A federal jury found Pete guilty of all charges related to the incident in August 2023 after a three-day trial. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“The investigation and prosecution of violent crime – in this case by an armed repeat offender – is central to our mission to protect the public,” said U.S. Attorney Coody. “This sentence illustrates our shared resolve to keep our communities safe and the significant consequences associated with such federal crimes of violence.”
The evidence produced at trial revealed that, on March 9, 2022, a few minutes before 4:00 a.m., two employees at Coyote’s Sports Bar on Bayou Blvd. in Pensacola were shot at point blank range by the defendant during an attempted robbery of the business. The victims were not able to identify the shooter at the time because of their wounds, but they provided a general description to law enforcement. Law enforcement obtained surveillance videos from surrounding businesses and noticed a white Jeep Grand Cherokee in the area at the time of the crime. The Pensacola Police Department put out a BOLO (be on the lookout), and the defendant was apprehended the next day in Dallas, Texas, driving a matching white Jeep Grand Cherokee that was registered to him. The defendant was in possession of the firearm that was used in the commission of the robbery, as later identified by ballistics comparison. The defendant’s phone location also placed him in the area at the time he committed the crime. The defendant has prior felony convictions for Burglary of a Dwelling with a Firearm, Grand Theft, and Shooting at within or into a Dwelling, and was released from prison only seven months prior to these offenses. He is also pending other firearm related charges in central Florida.
“This is a huge win for public safety in Northwest Florida,” said Special Agent in Charge Kirk Howard of ATF’s Tampa Field Division. “The sentencing decision matches the severity of the crimes, and we’re glad to have contributed our expertise in federal firearm laws to the joint investigation.”
“This case is another excellent example of the collaboration between local, state and federal partners working together to ensure the safety of our community,” said Chief Eric Randall, Pensacola Police. “We will continue to utilize every resource available to ensure our community is safe. This sentence should serve as a reminder there are consequences for your actions.”
Pete’s imprisonment will be followed by 3 years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of multiple other law enforcement agencies to include the Pensacola Police Department, Homeland Security Investigations, Grand Prairie Police Department in Dallas, Texas, the United States Marshals, and the Office of the State Attorney, First Judicial Circuit. Assistant United States Attorneys David Goldberg and Jessica Etherton prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Man Pleads Guilty to Aiming Laser at San Diego Sheriff’s HelicopterRead the Press Release
NEWS RELEASE SUMMARY – December 14, 2023
SAN DIEGO – Ruben Ricardo Rodriguez pleaded guilty in federal court today to aiming a laser at a San Diego Sheriff’s helicopter.
According to admissions in his plea agreement, on June 12, 2021, the Federal Aviation Administration (FAA) control tower at San Diego International Airport received multiple reports of a green laser striking commercial aircraft while they were landing. The FAA notified the San Diego Sheriff’s helicopter ASTREA of the laser strikes and gave the approximate location of the origin of the laser near National City, CA.
ASTREA, an acronym for Aerial Support To Regional Enforcement Agencies, the air support unit of the San Diego County Sheriff's Department, responded to the area and was struck in the cockpit by a green laser. The entire helicopter illuminated green in the sky. Video captured Rodriguez walking around a house while pointing the laser at the ground and across the street. Rodriguez then looked at ASTREA and aimed the laser at it again. The pilot said the laser strike created a bright dazzling effect on the aircraft’s glass. The laser struck the other deputy onboard in the eyes.
“Laser pointers are not toys, and aiming them at aircraft is a crime, not a prank,” said U.S. Attorney Tara McGrath. “Pilots could be blinded or incapacitated, causing deadly accidents.”
“Pointing a laser at an aircraft is a serious criminal act and can have potentially deadly consequences,” said FBI San Diego Acting Special Agent in Charge Jamie Arnold. “The FBI and its partner agencies take allegations of interfering with the operation of an aircraft seriously and encourage anyone with information about such incidents or if they see someone pointing a laser at an aircraft to report it to the FBI.”
Rodriguez is scheduled to be sentenced on March 4, 2024, at 9 a.m. before U.S. District Judge Cynthia A. Bashant.
This case is being prosecuted by Assistant U.S. Attorneys Jaclyn Stahl, Edward Chang, and Shivanjali Sewak.
DEFENDANT Case Number 23-CR-1467-BAS
Ruben Ricardo Rodriguez Age: 33 Logan, UT
SUMMARY OF CHARGES
Aiming a laser pointer at an aircraft – 18 U.S.C. § 39A
Maximum penalty: Five years in custody and a $250,000 fine
AGENCY
Federal Bureau of Investigation
Man Charged for Torturing PrisonersRead the Press Release
A Tennessee man was arraigned today on charges that he tortured prisoners during the armed conflict in Bosnia and Herzegovina in the 1990s.
According to a superseding indictment returned on Dec. 6, Sead Miljković, aka Sead Dukic, 51, of Chattanooga, was allegedly a member of the Obezbjeđenje objekata i lica (OBL), a police force of the so-called Autonomous Province of Western Bosnia (APZB). The OBL was responsible for guarding APZB headquarters at the Old Fort, a castle overlooking the town of Velika Kladuša, Bosnia and Herzegovina. Between December 1994 and August 1995, soldiers of the former Army of Bosnia and Herzegovina who had been captured in fighting against APZB armed forces were transported from detention camps to perform forced labor at the Old Fort under Miljković’s and other OBL members’ supervision and control.
“Sead Miljković allegedly tortured prisoners and then decades later lied about his identity to obtain a U.S. passport,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Neither the passage of time nor a defendant’s concealment efforts will prevent us from bringing human rights violators to justice and ensuring that perpetrators of torture cannot seek refuge in the United States.”
“The superseding indictment’s torture charges are serious human rights abuses that cannot go unpunished,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “We thank our investigative partners on this case for their outstanding efforts to gather evidence required for these charges.”
Miljković and other OBL members allegedly inflicted severe and sustained beatings on the prisoners, using a metal pipe, rifle butt, and shovel handle, causing the victims to lose consciousness or suffer other injuries. Miljković and other OBL members also allegedly threatened prisoners with death, intentionally withheld water even while forcing the prisoners to perform hard physical labor, forced the prisoners to fight one another, and pushed one victim’s head down on a knife or bayonet as if to impale his throat on the blade.
“Homeland Security Investigations (HSI) is resolute in its commitment to protecting human rights and the pursuit of justice,” said Special Agent in Charge Rana Saoud of HSI Nashville. “The United States in not a safe haven for war criminals and human rights violators. Thanks to the dedication of our HSI Chattanooga special agents, Miljković will now have to answer these allegations in court.”
Miljković is charged with three counts of inflicting torture on prisoners under his supervision. In June, Miljković was charged in a three-count indictment with passport fraud for allegedly making false statements relating to his true name and date of birth. If convicted, he faces a maximum penalty of 20 years in prison on each count.
HSI Chattanooga investigated the case, with support from HSI Vienna, HSI Newark, and HSI’s Human Rights Violators and War Crimes Center, and assistance from the Department of State’s Diplomatic Security Service Houston Field Office, Chattanooga Police Department Special Victims Unit, Hamilton County Sheriff’s Office, and Tennessee Highway Patrol. The Justice Department thanks the Ministry of Justice of Bosnia and Herzegovina and the United Nations International Residual Mechanism for Criminal Tribunals, which were instrumental in furthering the investigation.
Trial Attorneys Elizabeth Nielsen and Chelsea Schinnour of the Criminal Division’s Human Rights and Special Prosecution Section (HRSP) and Assistant U.S. Attorney Jay Woods for the Eastern District of Tennessee are prosecuting the case, with assistance from HSRP historians. The Justice Department’s Office of International Affairs also provided assistance.
Members of the public who have information about human rights violators in the United States are urged to contact U.S. law enforcement through the HSI tip line at 1-866-DHS-2-ICE or through the ICE online tip form at www.ice.gov/webform/ice-tip-form.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Charged for $60M Health Care Fraud and Kickback SchemeRead the Press Release
A federal grand jury in Miami returned an indictment yesterday charging a Texas man for his alleged role in a $60 million health care fraud, wire fraud, and kickback scheme involving the submission of false and fraudulent claims to Medicare for medically unnecessary durable medical equipment (DME), genetic tests, and foot bath medications.
According to court documents, Robert Leon Smith III, 48, of Archer City, owned and/or operated a network of DME companies in Florida, Texas, and Maryland through which he allegedly billed Medicare for medically unnecessary orthotic braces that were ineligible for Medicare reimbursement. Smith also allegedly referred doctors’ orders for medically unnecessary orthotic braces, genetic tests, and foot bath medications to other DME suppliers, pharmacies, and laboratories in exchange for kickbacks and bribes.
Smith allegedly paid kickbacks and bribes to offshore call centers operated by his co-conspirators to obtain Medicare beneficiary information and falsified doctors’ orders. The offshore call centers allegedly used deceptive tactics to pressure Medicare beneficiaries to accept the orthotic braces, genetic tests, and foot bath medications. Smith and his co-conspirators allegedly paid kickbacks and bribes to the offshore call centers in exchange for the Medicare beneficiary information, sometimes together with a forged doctor’s order. Smith also allegedly paid kickbacks and bribes to purported telemedicine companies in exchange for doctors’ orders signed by telemedicine practitioners who did not examine or treat the Medicare beneficiary. Smith allegedly used some of the doctors’ orders he acquired as a result of the payment of kickbacks and bribes to bill Medicare through his own network of DME companies, and also referred doctors’ orders to other DME suppliers, pharmacies, and labs in exchange for kickbacks and bribes.
Smith is charged with one count of conspiracy to commit health care fraud and wire fraud, four counts of health care fraud, one count of conspiracy to defraud the United States and to pay and receive health care kickbacks, and two counts of solicitation and receipt of health care kickbacks. If convicted, he faces a maximum penalty of 20 years in prison on each conspiracy to commit health care fraud and wire fraud count, a maximum penalty of 10 years in prison for each health care fraud and anti-kickback violations count, and a maximum penalty of five years in prison on each conspiracy to defraud the United States and to pay and receive kickbacks count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division, and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI Miami Field Office and HHS-OIG are investigating the case.
Trial Attorney Andrea Savdie of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Malas Manas Transnational Criminal Organization Leadership Indicted on Charges of Human Smuggling and Drug TraffickingRead the Press Release
On Nov. 29, a federal grand jury in Tucson returned an 11-count indictment against Jorge Damian Roman-Figueroa, Luis Eduardo Roman-Flores, Manuel Jose Bernal, Joel Salazar-Ballesteros, and Jesus Armando Gonzalez-Villela, all of Mexico, for conspiracy to transport aliens; conspiracy to launder monetary instruments; conspiracy to distribute marijuana, methamphetamine, fentanyl, and cocaine; distribution of marijuana, methamphetamine, fentanyl, and cocaine; and brandishing a firearm in furtherance of a drug trafficking crime.
“These actions are the latest in a long line of the Justice Department’s efforts to dismantle, piece-by-piece, violent cartels like Malasa Manas and Sinaloa,” said Attorney General Merrick B. Garland. “We will continue to target and prosecute the leaders and associates of the criminal groups responsible for poisoning the American people with fentanyl and endangering vulnerable migrants for profit.”
The indictment alleges that defendants Jorge Damian Roman-Figueroa, also known as Soldado, Luis Eduardo Roman-Flores, Manuel Jose Bernal, also known as Peque, and Joel Salazar-Ballesteros, also known as Catorce, are members of the Malas Manas Transnational Criminal Organization (TCO), operating in the Santa Cruz and Mascarenas areas of Mexico, with the permission of the Sinaloa Cartel.
The indictment alleges that these defendants operated a human smuggling organization as part of the Malas Manas TCO, trafficked drugs, and laundered the proceeds of both criminal activities. More specifically, the indictment alleges that beginning at an unknown time but including December 2020 and continuing through Nov. 12, 2021, defendants Roman-Figueroa, Roman-Flores, Bernal, and Salazar-Ballesteros conspired to transport aliens within the United States as part of the Malas Manas Transnational Criminal Organization.
The indictment alleges that between January 2019 and August 2023, Roman-Figueroa, Roman-Flores, and Salazar-Ballesteros conspired to launder the profits of alien smuggling and drug smuggling through the movement of monetary instruments from the United States to the Republic of Mexico.
The indictment further alleges that from 2019 until 2023 Roman-Figueroa, Bernal, Salazar-Ballesteros, and Gonzalez-Villela conspired to distribute and did distribute various quantities of fentanyl, marijuana, methamphetamine, and cocaine. Finally, the indictment alleges that Bernal brandished a firearm in furtherance of a drug trafficking crime involving methamphetamine on Feb. 3, 2021. The most serious of these crimes carries a maximum penalty of life in prison, and a fine of up to $10,000,000.
“DEA’s top operational priority is to defeat the two criminal organizations responsible for the influx of fentanyl into the United States — the Sinaloa and Jalisco Cartels. As alleged in the indictment, these defendants worked with the Sinaloa Cartel to send fentanyl and other deadly drugs into the United States,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “Today’s actions demonstrate that DEA will relentlessly pursue every member and associate of these global criminal organizations, which threaten the public health, safety, and national security of the American people.”
“The facts alleged here illustrate the breadth and diversity of the harmful actions by transnational criminal organizations,” said U.S. Attorney Gary Restaino for the District of Arizona. “This case isn’t about just guns, or drugs, or aliens. In our continuing efforts to safeguard and bolster border communities, we look forward to establishing the interconnectedness of these three related crimes.”
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. This case also involves the OCDETF Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Homeland Security Investigations Nogales, DEA Tucson Division, and the FBI OCDETF Strike Force in Tucson conducted the investigation in this case. Assistant U.S. Attorneys Rui Wang, Arturo Aguilar, and David Petermann for the District of Arizona worked on the investigation.
Assistant U.S. Attorney David Petermann for the District of Arizona is prosecuted the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Malas Manas Transnational Criminal Organization Leadership Indicted on Charges of Human Smuggling and Drug TraffickingRead the Press Release
TUCSON, Ariz. – On November 29, 2023, a federal grand jury in Tucson returned an 11-count indictment against Jorge Damian Roman-Figueroa, Luis Eduardo Roman-Flores, Manuel Jose Bernal, Joel Salazar-Ballesteros, and Jesus Armando Gonzalez-Villela, citizens of Mexico, for Conspiracy to Transport Aliens; Conspiracy to Launder Monetary Instruments; Conspiracy to Distribute Marijuana, Methamphetamine, Fentanyl, and Cocaine; Distribution of Marijuana, Methamphetamine, Fentanyl, and Cocaine; and Brandishing a Firearm in Furtherance of a Drug Trafficking Crime.
“These actions are the latest in a long line of the Justice Department’s efforts to dismantle, piece-by-piece, violent cartels like Malasa Manas and Sinaloa,” said Attorney General Merrick B. Garland. “We will continue to target and prosecute the leaders and associates of the criminal groups responsible for poisoning the American people with fentanyl and endangering vulnerable migrants for profit.”
The indictment alleges that defendants Jorge Damian Roman-Figueroa, also known as Soldado, Luis Eduardo Roman-Flores, Manuel Jose Bernal, also known as Peque, and Joel Salazar-Ballesteros, also known as Catorce, are members of the Malas Manas Transnational Criminal Organization (TCO), operating in the Santa Cruz and Mascarenas areas of Mexico, with the permission of the Sinaloa Cartel.
The indictment alleges that these defendants operated a human smuggling organization as part of the Malas Manas TCO, trafficked drugs, and laundered the proceeds of both criminal activities. More specifically, the indictment alleges that beginning at an unknown time but including December 2020 and continuing through November 12, 2021, defendants Roman-Figueroa, Roman-Flores, Bernal, and Salazar-Ballesteros conspired to transport aliens within the United States as part of the Malas Manas Transnational Criminal Organization.
The indictment alleges that between January 2019 and August 2023, defendants Roman-Figueroa, Roman-Flores, and Salazar-Ballesteros conspired to launder the profits of alien smuggling and drug smuggling through the movement of monetary instruments from the United States to the Republic of Mexico.
The indictment further alleges that from 2019 until 2023 Roman-Figueroa, Bernal, Salazar-Ballesteros, and Gonzalez-Villela conspired to distribute and did distribute various quantities of fentanyl, marijuana, methamphetamine, and cocaine. Finally, the indictment alleges that Bernal brandished a firearm in furtherance of a drug trafficking crime involving methamphetamine on February 3, 2021. The most serious of these crimes carries a minimum mandatory term of 10 years and up to a maximum term of life in prison, and a fine of up to $10,000,000.
“DEA’s top operational priority is to defeat the two criminal organizations responsible for the influx of fentanyl into the United States— the Sinaloa and Jalisco Cartels. As alleged in the indictment, these defendants worked with the Sinaloa Cartel to send fentanyl and other deadly drugs into the United States,” said DEA Administrator Anne Milgram. “Today’s actions demonstrate that DEA will relentlessly pursue every member and associate of these global criminal organizations, which threaten the public health, safety, and national security of the American people.”
“The facts alleged here illustrate the breadth and diversity of the harmful actions by transnational criminal organizations,” said United States Attorney Gary Restaino. “This case isn’t about just guns, or drugs, or aliens. In our continuing efforts to safeguard and bolster border communities, we look forward to establishing the interconnectedness of these three related crimes.”
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. This case also involves the OCDETF Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Homeland Security Investigations – Nogales Office, the Drug Enforcement Administration – Tucson Office, and the Federal Bureau of Investigation OCDETF Strike Force in Tucson conducted the investigation in this case. Assistant U.S. Attorneys (AUSA) Rui Wang, Arturo Aguilar, and David Petermann worked on the investigation. AUSA David Petermann is handling the prosecution.
CASE NUMBER: CR-23-01975-TUC-JCH (AMM)
RELEASE NUMBER: 2023-200_Roman-Figueroa, et al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Louisiana man sentenced to ten years for transportation of a minor across state lines for sexual purposesRead the Press Release
OXFORD, Miss. – A Louisiana man was sentenced today to 10 years in prison for transporting a minor across state lines with intent to engage in criminal sexual activity.
According to court documents and evidence presented at trial, Ronald Latiolais, III, age 28, met a Mississippi teen online and began chatting with her using an online application. In April of 2019, Latiolais drove from Louisiana to Mississippi to meet the 13-year-old girl. During their conversations, the minor revealed to Latiolais that she was underage. Despite knowing she was underage, Latiolais went to the teen’s house during the middle of the night, cut the screen on the minor’s bedroom window, and escaped undetected with the teen. Latiolais admitted to committing sexual acts with the minor during a stop on the drive from Mississippi to Louisiana. The minor was recovered at Latiolais’ house the next day.
At the conclusion of the March 2022 trial of this case, a jury found Latiolais guilty of transporting a minor in interstate commerce with the intent to engage in unlawful sexual activity, a charge requiring a mandatory minimum sentence of 120 months in prison. Latiolais has remained in jail since August of 2022, and was sentenced on Thursday to serve 120 months in prison. Upon release from prison, Latiolais will remain on supervised release for five years and must register as a sex offender.
U.S. Attorney Clay Joyner of the Northern District of Mississippi announced the sentence on Thursday afternoon.
This case was investigated by the FBI and the Mississippi Bureau of Investigation with assistance from local law enforcement agencies. Assistant U.S. Attorneys Parker S. King and Julie Addison prosecuted the case.
Los Angeles Man Sentenced to More Than 5 Years in Prison for COVID-19 Business Loan Fraud Schemes and for Firearms and Ammo CrimeRead the Press Release
LOS ANGELES – A downtown Los Angeles man was sentenced today to 63 months in federal prison for fraudulently obtaining more than $150,000 – and attempted to obtain an additional $1.85 million – in COVID-relief loans for several companies he claimed to own and operate, and for illegally possessing firearms – including three AR-style rifles – and thousands of rounds of ammunition.
Sean Schoepflin, 44, a.k.a. “Sean Fitzgerald,” was sentenced by United States District Judge Fernando M. Olguin, who ordered Schoepflin immediately remanded into custody at today’s hearing.
At the conclusion of a three-day trial in late 2022, a jury found Schoepflin guilty of two counts of wire fraud and two counts of money laundering. At a separate two-day trial that concluded on August 16, a jury found Schoepflin guilty of one count of being a felon in possession of firearms and ammunition.
From April 2020 to October 2021, Schoepflin made numerous false statements to the United States Small Business Administration to secure more than $150,000 – and attempting to secure an additional $1.85 million – in Economic Injury Disaster Loans (EIDLs) for his business.
In applying for the EIDL loans, Schoepflin falsely stated that the business entity he created had several employees and more than half a million dollars in revenue, and that he would use the EIDLs for working capital for the business. Schoepflin also falsely stated on loan application that he had never been convicted of a felony.
In fact, his purported business, Capital Adventures Inc., had no employees and little to no revenue. Schoepflin used the EIDLs largely for personal expenses, and he had previously been convicted of multiple felonies.
For example, Schoepflin falsely stated in the loan application that Capital Adventures had revenues of $560,000 in a one-year period just before the pandemic. When an SBA employee sent an email to Schoepflin requesting Capital Adventures’ business tax return to show proof of the company’s existence as a business entity, Schoepflin sent an unsigned tax form that stated that Capital Adventures had gross sales or receipts of $625,112 in 2019.
In fact, Capital Adventures did not file the required IRS form for 2019 until July 2021, after it requested and was denied an increase for its EIDL. Furthermore, between February 2018 and April 2020, Capital Adventures’ bank accounts had total deposits of approximately $35,000.
“While the rest of the world was grappling with the effects of the worst pandemic in modern history…Sean Schoepflin saw this time as an opportunity to steal hundreds of thousands of dollars from American small businesses for his own gain,” prosecutors argued in a sentencing memorandum. “[Schoepflin]…utilized four fictitious companies over the span of a year to apply repeatedly for COVID-19 funds to which [he was] not entitled.”
In March 2022, federal law enforcement searched Schoepflin’s residence in connection with his COVID fraud scheme. While there, agents recovered nine firearms, including three AR-style assault rifles, and more than 4,000 rounds of ammunition belonging to Schoepflin.
Schoepflin is not permitted to possess firearms or ammunition because of his felony convictions dating back to the late 1990s in Florida state court, which include witness tampering, cocaine possession, and burglary.
Schoepflin’s wife, Erika Leon, 46, a.k.a. “Erika Fitzgerald,” also of downtown Los Angeles, has pleaded not guilty to two counts of wire fraud in the COVID fraud case. She is expected to go to trial early next year.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and the Treasury Inspector General for Tax Administration investigated this matter. The Small Business Administration’s Office of Inspector General and the Naval Criminal Investigative Service provided substantial assistance with the investigation.
Assistant United States Attorneys Solomon Kim and David C. Lachman of the Terrorism and Export Crimes Section are prosecuting this case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Leeds Woman Sentenced to Ten Years in Prison for Drug ConvictionRead the Press Release
BIRMINGHAM, Ala. – A Leeds woman was sentenced today on drug charges, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton L. Peeples.
U.S. District Court Judge Corey L. Maze sentenced Joannah Ruth Ruoho, 34, to 120 months in prison for possession with intent to distribute methamphetamine. Ruoho pleaded guilty to the charge in September.
According to the plea agreement, in February 2022, a Moody Police Department officer initiated a traffic stop on Ruoho. Ruoho rolled down the window and the police officer could smell the odor of marijuana. At the request of the police officer, Ruoho got out of the vehicle. The officer searched the vehicle and found a bag with methamphetamine inside it, two prepackaged cannabis bags containing methamphetamine, two clear plastic bags containing marijuana, a plastic bag containing mushrooms, and a glass pipe with narcotics residue on it. The officer also found a loaded Taurus PT140 G2 40 SW pistol underneath the driver’s seat.
The FBI investigated the case, along with the Moody Police Department. Assistant U.S. Attorney Brittany Byrd prosecuted the case.
Lee County Man Pleads Guilty in Connection with $1.35 Million COVID Relief Fraud SchemeRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Evan Graves (40, Alva) has pleaded guilty to wire fraud in connection with a $1.35 million COVID relief fraud scheme. Graves faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set. As part of his guilty plea, Graves has agreed to forfeit approximately $1,355,600 and six properties in Fort Myers that he had purchased or funded using proceeds of his fraud.
According to the plea agreement and other court documents, between June 20 and July 23, 2020, Graves electronically submitted 10 Economic Injury Disaster Loan (EIDL) applications to the Small Business Administration (SBA) on behalf of his various Fort Myers-based companies. In each EIDL application, Graves falsely represented his companies’ number of employees, gross revenues, and lost rental income due to the COVID-19 disaster to qualify for large loan amounts and advance funding. In total, Graves’s fraudulent representations caused the SBA to approve his 10 loans and deposit approximately $1.35 million into bank accounts controlled by Graves. Following disbursement of the EIDL funding, Graves unlawfully used the money to, among other things, pay off personal credit card debt, fund personal investment accounts, satisfy mortgages, and purchase real estate.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Simon R. Eth. Assistant United States Attorney Suzanne Nebesky is handling the forfeiture.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.
Download Plea AgreementJustice Department Announces Numerous Firearms, Illegal Narcotics, and Conspiracy Charges in Multi-Agency Take DownRead the Press Release
The Justice Department today announced that 20 individuals were charged in federal court in connection with firearms-trafficking, narcotics, conspiracy, or other firearms offenses after a targeted violent crime reduction initiative in West Columbia, South Carolina. The indictments are a result of a series of coordinated arrests made following a targeted multi-agency operation that spanned several months.
“This operation targeting gun and drug trafficking in South Carolina exemplifies the Justice Department’s partnership-centered, community-tailored strategy to combat violent crime,” said Attorney General Merrick B. Garland. “The Justice Department will continue to work closely alongside our local law enforcement and community partners to target the most significant drivers of violent crime and keep people safe.”
“Partnerships are a powerful tool in combatting violent crime,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “The significant impact of this operation is the product of hundreds of manhours from multiple federal, state, and local law enforcement agencies. Our communities are safer today because of their collaboration.”
In June 2022, in response to rising violent crime in the West Columbia area, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Columbia launched an advanced, intelligence-based, multi-faceted law enforcement operation. The purpose of the operation was to target criminal entities and groups in the area, specifically those engaged in the illegal use, sale, and possession of firearms and narcotics. ATF established a controlled buy location, and ATF undercover agents and confidential informants began conducting controlled purchases of firearms and narcotics from criminal targets in the area, while local agencies conducted crime suppression operations.
Defendants included members of the Bloods, Crips, and Gangster Disciple street gangs. The joint investigation has led to 20 defendants facing federal charges. Federal agents purchased or seized 210 firearms, including several machine gun conversion devices or “switches” designed to convert a firearm to a fully automatic weapon, and thousands of rounds of ammunition. Additionally, law enforcement purchased or seized approximately 12 kilograms of methamphetamine, 500 grams of powder cocaine, 500 grams of powder fentanyl, 280 grams of crack cocaine, 2,826 fentanyl pills, and over 2,100 polydrug pills.
Some defendants were charged together, but several others were charged individually. The following charges have been filed in United States District Court, according to court documents:
- Christopher Huntington, also known as Crazy, 32, of Lugoff, was charged with multiple counts of distributing 50 grams of more of methamphetamine, as well as possession of a firearm in furtherance of drug trafficking and unlawful possession of a firearms.
- Tyrek Carroway, also known as Everything, 24, of Columbia was charged with multiple counts of distributing 50 grams of more of methamphetamine as well as possession of a firearm in furtherance of drug trafficking.
- Marcelleus Robinson also known as Drawdown, 31, of Columbia and Howard Parker, 31, of West Columbia, were charged with unlawful possession of a firearms and unlawful possession of machineguns.
- Joseph Wadsworth, also known as J-Roc, 39, of Gaston, and Curtis Hill III, 33, of Lexington, were charged with multiple counts of distribution of methamphetamine and fentanyl, as well as possession of a firearm in furtherance of drug trafficking and unlawful possession of a firearms.
- Sean Smith, also known as D, 40, of Cayce, was charged with multiple counts of distribution of 40 grams or more of fentanyl and 50 grams or more of methamphetamine, as well as possession of a firearm in furtherance of drug trafficking and unlawful possession of a firearms.
- Lamark Gill, also known as Lamont, 47, of Lexington, was charged with possession with intent to distribute fentanyl, methamphetamine, and crack cocaine, as well as possession of a firearm in furtherance of drug trafficking and unlawful possession of a firearms.
- Ricky Bell Jr., 35, of Columbia, was charged with distribution of a mixture or substance containing a detectable amount of methamphetamine and unlawful possession of firearms.
- Dequincy Marquez Jordan, 37, of Florence, was charged with two counts of distribution of 50 grams or more of methamphetamine.
- Jordan Deshawn Waden also known as Yayo, 24, of Columbia, was charged with two counts of possession of a firearm by a convicted felon.
- Joel Jeremiah Williams, 35, of Columbia, was charged with two counts of possession of a firearm by a convicted felon.
- Angela Peterson Black, 51, of Lexington, was charged with possession with intent to distribute and distribution of a mixture or substance containing a detectable amount of methamphetamine.
- Michael Wright, 45, of Greenville, was charged with conspiring to distribute 50 grams or more of methamphetamine, as well as six counts of distributing methamphetamine and one count of possession of a firearm in furtherance of drug trafficking.
- Terrance Myers, also known as Terrance Toomer, 47, of Orangeburg, was charged with being a felon in possession of a firearm.
- Kendolius Jones, also known as Duke Brim, 30, of West Columbia, was charged with felon in possession of firearms and ammunition, as well as possession of an unregistered short barrel rifle.
- Reginald Pearson, 40, of Columbia, was charged with three counts possession with intent to distribute 50 grams or more of methamphetamine, one count possession with intent to distribute 50 grams or more of methamphetamine and a quantity of cocaine, as well as felon in possession and possession of a firearm in furtherance of a drug trafficking crime.
- Everette Wanamaker, 36, of Columbia, was charged with two counts possession with intent to distribute a quantity of fentanyl, as well as six counts of felon in possession.
- Sean Dunagan, 44, of Marietta, Georgia, was charged with possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, with possession with intent to distribute fifty grams or more of methamphetamine as well as possession of a firearm in furtherance of drug trafficking and destruction of evidence.
- Davarious Keith, 30, of West Columbia, was charged with dealing in firearms without a license, distribution of crack cocaine, as well as felon in possession and possession of a firearm in furtherance of a drug trafficking crime.
- David Smith, 36, of West Columbia, was charged with distribution of crack cocaine.
- Gregory Huggins, 30, of Lexington was charged with two counts of possession with intent to distribute 50 grams or more of methamphetamine and two counts of possession with intent to distribute five grams or more of methamphetamine.
ATF, Homeland Security Investigations (HSI), the West Columbia Police Department, Lexington County Sheriff’s Department, and Richland County Sheriff’s Department investigated the case.
The South Carolina Attorney General’s Office is handling the prosecution of additional defendants facing state charges related to this investigation. The federal cases stemming from this investigation are being prosecuted by a team of Assistant U.S. Attorneys in the U.S. Attorney’s Office, led by Assistant U.S. Attorney Elle E. Klein for the District of South Carolina.
The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Justice Department'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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jury convicts cartel leader in murder-for-hire conspiracyRead the Press Release
LAREDO – A federal jury has convicted a 40-year-old Mexican citizen residing in Laredo on multiple counts for conspiracy to possess with intent to distribute cocaine, kidnapping and murder-for-hire, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for approximately one hour before finding Noe Gonzalez-Martinez aka Tocayo guilty on all counts as charged following a three-day trial.
Gonzalez-Martinez was convicted of conspiracy to possess with intent to distribute five kilograms or more of cocaine, murder-for-hire conspiracy, murder for hire, conspiracy to kidnap, possession of firearms in furtherance of drug trafficking related crime and interstate travel in aid of racketeering.
During the trial, the jury heard evidence that between Sept. 7, 2021, and Sept. 13, 2021, Gonzalez-Martinez, a leader and manager of the Cartel Del Noreste (CDN), and several other CDN members traveled from Nuevo Laredo, Tamaulipas, Mexico, into Laredo. There, Gonzalez-Martinez solicited the help of other CDN affiliates to recruit, plan and coordinate the kidnapping and murder of an individual the Cartel believed had stolen from them.
The investigation revealed Gonzalez-Martinez communicated via cellphone with co-conspirators to plan and coordinate the recovery of drugs and proceeds from the intended victim. In addition, Gonzalez-Martinez provided co-conspirators with an address where they could retrieve firearms and a vehicle to execute the murder.
On Sept. 13, 2021, co-conspirators took possession of an automobile and firearms to carry out the murder. The firearms included a Colt Government Model caliber .45 pistol, Trooper MKIII caliber .357 magnum revolver, Bushmaster caliber .223-5.56 mm rifle and a Colt AR-15 A2 caliber .223.
Law enforcement set up the arrest of three “sicarios” (hitmen) who were secreted into Laredo by the CDN. The sicarios were led to a vehicle and firearms in an undercover operation. Authorities apprehended all three sicarios during a joint law enforcement operation.
The jury also heard testimony from all law enforcement agencies involved in the operation. Authorities detailed their investigation into the cellphones used by the CDN to commit this crime, the firearms obtain by the CDN and the defendants border crossing. A co-conspirator provided insider knowledge of the CDN and its operations. Additionally, he admitted to the jury he was a sicario, a hired killer for the CDN and his participation in the crime.
Co-conspirators Juan Antonio Martinez-Padilla aka Juan Antonio Martinez-Lopez or Otoniel Martinez-Padilla, 58, Gregorio Gonzalez-Barragan, 33, and Rodolfo Reyna-Zapata, 25, all from Nuevo Laredo, Mexico, previously pleaded guilty to the kidnapping conspiracy and are pending sentencing on that charge.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and set sentencing for March 25, 2024. At that time, Gonzalez-Martinez faces up to life in federal prison. He has been and will remain in custody pending that hearing.
The Drug Enforcement Administration, Homeland Security Investigations and the Laredo Police Department conducted the investigation. Assistant U.S. Attorneys José Angel Moreno and Steven Chamberlin prosecuted the case.
Jury Convicts Three Men for Violent Hobbs Act ConspiracyRead the Press Release
MIAMI – On Dec. 12, a federal jury found Palacio Valdes Farley, a/k/a “Bobo” and “Bo,” Joassaint Josiah Aristil, Jr., a/k/a “JoJo,”, and Jamar Brandon Nattiel, a/k/a “Debo” and “D-Boy,” guilty of conspiracy to commit Hobbs Act robbery.
According to evidence presented at trial, during 2016 and 2017, Farley organized and led a South Florida-based conspiracy to distribute marijuana. Farley sought to obtain marijuana for free, so that he could sell it at a 100 percent profit. To obtain free marijuana, Farley would obtain marijuana on credit, fail to pay for it, and conspired with others to rob suppliers of their product.
Farley’s conspiracy to rob drug-traffickers of their marijuana began on or about May 22-23, 2016, when Farley, co-defendant Andrew Francois Martin, and Farley’s known associate and unindicted co-conspirator, “John Doe,” flew from Florida to Los Angeles for the purpose of robbing a supplier of his marijuana. On the morning of May 24, 2016, the three robbers met with a supplier in an apartment in Van Nuys, California, for the purpose of taking 25 pounds of marijuana that the supplier intended to sell them. When the supplier refused to sell the marijuana on consignment; the robbers shot the victim several times, took his marijuana, and fled the scene.
Evidence was also introduced at trial that on April 20, 2017, Farley and Martin approached two additional victims, with guns drawn, as they exited a restaurant in Daytona Beach, Florida and were walking to their car. One victim was pushed to the ground at gunpoint, while another was robbed of a chain, watch, pendant, and wallet. Martin shot at the owner of the restaurant when the owner came to the aid of his customers. The owner shot back and wounded Martin in the leg.
Thereafter, the Hobbs Act conspiracy continued.
In and around Nov. 2017, Farley enlisted co-defendants Lisa Ann Flood, Karen Xiomara Williams, JoAristil and Nattiel, to rob a victim in southern California. To set up the robbery, Farley told the victim that he would send one of his representatives to pay a drug debt and buy more marijuana. On the night of December 5, 2017, Flood, Williams, Aristil, Nattiel, and an unidentified male co-conspirator, met in a hotel room to prepare for the robbery. Aristil, Nattiel, and the unidentified male donned black. Lisa Flood loaded the 9 mm pistols and gave the firearms to Aristil and Nattiel. The group then drove to the victim’s neighborhood. At approximately 11:30 pm., Flood knocked on the front door of the marijuana distributor and was let in. After a brief conversation, Flood excused herself to return to her car and get money. A moment later, Aristil, Nattiel, and a third man burst through the front door. They pointed their guns at the victim, tied the victim’s hands and feet with zip ties, and confined the victim to a room. One of the robbers went upstairs and pulled the victim’s wife out of bed, put his arm around her neck, stuck his gun in her back, and marched her downstairs to the den, where they tied her hands and feet, and put a plastic bag over her head. The robbers then ransacked the victims’ house, stealing marijuana, jewelry, and currency.
Martin and Flood previously pled guilty to participating in the conspiracy to commit Hobbs Act robbery and are pending sentencing. Williams pled guilty to conspiracy to commit Hobbs Act robbery and was sentenced to 168 months in prison.
U.S. District Judge Roy K. Altman is scheduled to sentence Farley, Aristil, and Nattiel, on March 18, 2024. Each defendant faces up to 20 years in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO) announced the convictions.
FBI and BSO investigated this case with assistance from Lauderhill Police Department, Los Angeles Police Department (LAPD), and Daytona Beach Police Department. Assistant U.S. Attorneys Dwayne E. Williams and Elena Smukler are prosecuting it.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
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 the PSN program a broad spectrum of law enforcement and community 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 to reduce violence crime and gun violence, and to make our local neighborhoods safer for everyone.
OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-20556-Cr-Altman/Reid.
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Independence Man Sentenced for Child PornographyRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man was sentenced in federal court today for uploading hundreds of images and videos of child pornography to his online storage accounts, as well as sending videos of child pornography to an Ohio teenager.
Joshua M. Rodgers, 29, was sentenced by U.S. District Judge Greg Kays to eight years in federal prison without parole. The court also sentenced Rodgers to spend the rest of his life on supervised release following incarceration and to pay $35,000 in restitution to his victims. Rodgers will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On July 17, 2023, Rodgers pleaded guilty to one count of transporting child pornography. Rodgers admitted that he uploaded hundreds of images and videos of child pornography to his cloud storage online Google account, particularly in his Google Drive file, as well as to Dropbox, an online cloud file storage program, from Dec. 4, 2017, to Feb. 27, 2019.
On April 29, 2019, the Western Missouri Cyber Crimes Task Force received four CyberTip reports from the National Center for Missing and Exploited Children regarding a total of 548 videos of child pornography uploaded to Rodgers’s Google accounts. Investigators then identified 728 images and 771 videos of child pornography in Rodgers’s Google account. Of those, roughly 101 files involved infants or toddlers. An additional 1,022 images and 124 videos depicted “age difficult” persons and child erotica.
On Oct. 22, 2019, federal agents executed a search warrant at Rodgers’s residence. They seized his computer, which contained 658 videos and 139 images of suspected child pornography, including prepubescent victims, sadomasochistic behaviors, and bestiality.
Rodgers also admitted to previously communicating with a female from Ohio, beginning when she was 15 years old, and he admitted to sharing images and videos with her. Rodgers repeatedly asked her to send him pornographic images and videos of herself. He even bought her a sex toy, and had it sent to her to use in videos she could create for him. Rodgers also sent her videos of child pornography.
This case was prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by Homeland Security Investigations and the Western 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."
Illegally Armed Methamphetamine Trafficker Is Sentenced to 27 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Today, Brandon Alan Purvis, 44, of Waynesville, N.C., was sentenced to 27 years in prison followed by five years of supervised release for trafficking methamphetamine and illegal possession of a firearm, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Sheriff William Wilke of the Haywood County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to documents filed with the court, in October 2021, an investigation into Purvis’s drug trafficking activities was initiated, after law enforcement learned that the defendant was acquiring methamphetamine and redistributing it to others in and around Haywood County. On November 2, 2021, law enforcement conducting surveillance observed Purvis drive away from his residence in Waynesville. Shortly thereafter, Haywood County deputies attempted to pull over Purvis’s vehicle for a traffic violation. Purvis failed to stop and continued to speed away with the deputies in pursuit of the vehicle. As Purvis was driving over a bridge, deputies observed Purvis toss a backpack from his passenger window into the river and he continued to speed away.
According to court records, Purvis eventually stopped his vehicle and was arrested at the scene. Haywood County officers recovered nearly $9,000 in cash, narcotics, and an air power rifle from Purvis and his vehicle. Law enforcement then located the backpack Purvis had tossed into the river and found more than 1.7 kilograms of methamphetamine at the bottom of the bag. Law enforcement also executed a search warrant at Purvis’s residence. During the search, law enforcement seized a loaded firearm and more than $17,000 in cash. Purvis has a lengthy criminal history and he is prohibited under federal law of possessing a firearm or ammunition. Court records also show that over the course of the investigation law enforcement determined that Purvis was responsible for trafficking over $2.5 kilograms of methamphetamine.
On May 17, 2023, Purvis pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm by a felon. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King credited the investigative work of the U.S. Drug Enforcement Administration and the Haywood County Sheriff’s Office, which are part of an investigation led by the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF). U.S. Attorney King also thanked the Henderson County Sheriff’s Office, the Swain County Sheriff’s Office, the Waynesville Police Department, the McDowell County Sheriff’s Office, the Canton Police Department, the Buncombe County Sheriff’s Office, the Maggie Valley Police Department, the North Carolina State Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigative efforts in the broader OCDETF investigation.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
Assistant U.S. Attorney Christopher Hess with the U.S. Attorney’s Office in Asheville prosecuted the case.
Gretna Man Pleads Guilty to Violating the Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that FELIX MACKEY pled guilty on December 13, 2023 to violating the Federal Controlled Substances and Gun Control Acts before United States District Judge Jane Triche Milazzo.
MACKEY pled guilty to Counts 1 and 5 of the indictment. Count 1 charges him with conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine hydrochloride, and cocaine base, all Schedule II controlled substances, in violation of Title 21, United States Code, Section 841(a)(1) and Title 21, United States Code, Section 846. Count 5 charges him with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
For Count 1, MACKEY faces a mandatory minimum of ten (10) years imprisonment up to a maximum of life in prison, a fine of up to $10,000,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person, and a term of supervised release for a period of not less than five (5) years but up to life. For Count 5, he faces up to ten (10) years in prison, a fine of up to $250,000, and up to three (3) years of supervised release. Additionally, MACKEY faces payment of a mandatory special assessment fee of $100.00 per count . MACKEY’s sentencing is set for March27, 2024.
According to court documents, in May 2021, MACKEY sold methamphetamine to a confidential source on three occasions. On June 3, 2021, law enforcement executed a search warrant on MACKEY’s residence and found 92.127 grams of methamphetamine hydrochloride, 99.31 grams of cocaine, and 10.13 grams of cocaine base. Law enforcement also seized a black Taurus Model PT111, 9millimeter pistol, that was loaded with eleven (11) live cartridges. MACKEY was previously convicted of a felony in Plaquemines Parish. MACKEY admitted to sole ownership of all evidence recovered.
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 agents from the Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys, Bayonle Osundare, Christopher Usher, Nolan Paige, and Rachal Cassagne of the Narcotics Unit.
Greenville Woman Sentenced to Federal Prison for Making Fraudulent Statements to MedicaidRead the Press Release
COLUMBIA, S.C. — Nina Bourret, 41, of Greenville, was sentenced to one year and one day in federal prison after pleading guilty to making fraudulent statements to Medicaid in connection with the delivery of autism spectrum disorder services.
Evidence obtained in the investigation revealed that Bourret was an owner of Agapi Behavior Consultants, Inc. (“Agapi), which was a business that provided Applied Behavior Analysis (ABA) therapy to treat Autism Spectrum Disorder (ASD). From Feb. 2021 to Dec. 2022, Bourret submitted electronic claims to Medicaid on behalf of Agapi that falsely and fraudulently certified that services had been rendered and/or certified that services had been rendered in excess of what was actually provided to the beneficiary. The investigation revealed Bourret and Agapi submitted claims to Medicaid that contained false and fraudulent statements in the amount of $984,239.30.
Senior United States District Judge Henry Michael Herlong, Jr. sentenced Bourret to 12 months and one day imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
Bourret was also ordered to pay $1,760,547.94 in restitution. The restitution ordered represents the amount of fraudulent claims Bourret submitted to Medicaid while operating Agapi and an additional $776,308.64, which represents fraudulent claims Bourret submitted to Medicaid between May 2022 and May 2023 through a company called Navis Pad.
“When the programs that are intended to help those in most need of medical care are exploited, it takes away valuable resources from our neighbors,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “We will continue to work with our law enforcement partners to combat healthcare fraud in all its forms.”
“The defendant’s actions compromised the integrity of our healthcare systems,” said Steve Jensen, Special Agent in Charge of the FBI Columbia Field Office. “The message is clear; the FBI and its law enforcement partners remain steadfast in delivering justice for victims and bringing accountability to those who take advantage of our country’s healthcare programs.”
"Individuals who submit fraudulent claims to Medicaid undermine a valuable health care program intended to care for some of the most vulnerable populations in our communities,” said Tamala Miles, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is committed to working with our law enforcement partners to ensure that those alleged of defrauding federal health care programs are held accountable.”
“The South Carolina Attorney General’s Office condemns businesses that defraud the government to line their own pockets at the expense of South Carolina’s less fortunate and vulnerable individuals,” said South Carolina Attorney General Alan Wilson. “This is not a victimless crime, and we will continue to investigate these matters to combat provider fraud that ultimately affects everyone in South Carolina.”
The case was investigated by the FBI Columbia Field Office, the Department of Health and Human Services – Office of the Inspector General, and the South Carolina Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Amy Bower prosecuted the case.
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Greene County Men Sentenced to Jail for Tax Evasion ConspiracyRead the Press Release
ALBANY, NEW YORK – Dennis Radcliffe, age 52, and Kenneth Radcliffe, age 50, each of Elka Park, New York, were each sentenced today to 6 months in jail, and to pay a $40,000 fine, for conspiring to evade taxes on income earned from stock sales.
United States Attorney Carla B. Freedman and Thomas Fattorusso, Special Agent in Charge, New York Field Office, Internal Revenue Service-Criminal Investigation (IRS-CI), made the announcement.
Dennis Radcliffe and Kenneth Radcliffe, who are cousins, each previously pled guilty to two conspiracies. In the first conspiracy, they conspired with each other to avoid taxes on their personal income, by failing to report several million dollars of income earned principally from sales of penny stocks, from 2014 through 2017. The stock sales occurred in brokerage accounts that Dennis Radcliffe and Kenneth Radcliffe controlled, and which stood in the names of their companies Crackerjack Classics LLC (“Crackerjack”) and Universal Consulting LLC (“Universal”).
In the second conspiracy, Dennis Radcliffe and Kenneth Radcliffe conspired with each other and with Joseph Radcliffe, Dennis’s father, to avoid taxes on approximately $500,000 in compensation that Crackerjack and Universal paid to Joseph, from 2013 through 2019. Joseph Radcliffe was a former Wall Street stockbroker and at the time he was evading the payment of taxes, he owed more than $1 million to the U.S. Securities and Exchange Commission (SEC), after settling fraud allegations with the SEC in 2011. Joseph Radcliffe has also failed to repay the SEC.
United States District Judge Glenn T. Suddaby also ordered Dennis Radcliffe to pay $77,552 in restitution to the IRS and ordered Kenneth Radcliffe to pay an additional $152,274 in restitution. In imposing sentence, Judge Suddaby noted that the defendants “come from good people” and that there was no excuse for their willful conduct. “This is just all about greed – pure, unadulterated greed,” said Judge Suddaby.
Joseph Radcliffe, age 76, of Elka Park, was sentenced in August 2022 to 3 years of probation, to include 4 weekends in jail, and to pay $109,106 in restitution to the IRS, following his guilty plea to tax evasion conspiracy.
IRS-CI investigated this case and Assistant U.S. Attorney Michael Barnett prosecuted this case.
Franktown Man Pleads Guilty to Aiming a Laser Pointer at Police HelicopterRead the Press Release
DENVER—The U.S. Attorney’s Office for the District of Colorado announces Kevin William Adamchak, age 43, of Franktown, pleaded guilty to a single count of aiming a laser pointer at an aircraft.
According to the plea agreement, on March 2, 2023, a helicopter operated by the Denver Police Department, “Air 1,” was assisting other Colorado-based law enforcement agencies with aerial surveillance. While in flight, Air 1 was struck by a blue laser. Using a thermal imager and camera, the Air 1 crew determined that the laser strike originated from a parking lot near the intersection of East 55th Avenue and Logan Court in Denver. Air 1 located a suspect associated with the laser strike, who was later identified as Defendant Adamchak.
During a subsequent interview, the pilot of Air 1 at the time of the laser strike reported that the laser strike caused flash blindness and intense pain in both of his eyes. He was able to maintain control of the aircraft until his visual orientation returned.
“What some may think is just a prank—pointing a laser pointer at an aircraft—actually presents a deadly risk to people in the aircraft and on the ground,” said United States Attorney Cole Finegan. “We hope that this case will raise public awareness of these serious dangers.”
"A laser strike on an aircraft is not a game," said FBI Denver Special Agent in Charge Mark Michalek. "It's a serious action with possibly lethal consequences. The FBI will continue to vigorously investigate these incidents."
Adamchak is scheduled to be sentenced on March 7, 2024. A United States District Judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case. Assistant United States Attorneys Jena Neuscheler and Alecia Riewerts are handling the prosecution.
Case Number: 23-cr-00303-RMR
Four Individuals Face Federal Indictment for International Mail and Wire Fraud SchemeRead the Press Release
The scheme operated for years in West Michigan and throughout the United States
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal grand jury returned an indictment charging Fatai Okunola, 37, of Kalamazoo, Michigan; Oluwaseyi Adeola, 33, and Ijeoma Adeola, 35, of Dallas, Texas; and Cory McDougal, 32, of Romeoville, Illinois, with conspiracy to commit mail and wire fraud. Oluwaseyi Adeola and Okunola also face charges related to their naturalization or attempt to naturalize as United States’ citizens.
“These fraud schemes can financially devastate victims, especially the elderly and other vulnerable people,” said U.S. Attorney Mark Totten. “Some of the victims in this case lost their retirement savings, took loans against their homes, or suffered other financial distress because of the defendants’ alleged lies. My office will vigorously investigate these cases to ensure the perpetrators are brought to justice.”
If convicted of conspiracy to commit mail and wire fraud, defendants face a maximum sentence of up to 20 years in prison. Okunola also faces up to 5 years in prison if convicted of making a false statement on his application for naturalization as a United States citizen, and Oluwaseyi Adeola faces up to an additional 10 years in prison if convicted of obtaining his naturalization as a United States citizen through false or fraudulent representations.
According to allegations in the indictment, the defendants conspired with individuals primarily in Nigeria to defraud individuals in the United States, many that were elderly or particularly vulnerable, through a variety of fraud schemes using interstate wire transmissions or the mail system. The conspirators in Nigeria created false online personas to develop relationships with their victims over the internet, through social media, by text messages or by telephone. These relationships centered around romantic interests, offers to buy or sell goods or services, apartment rentals, or offers to make loans or provide grant funding, among other schemes. The conspirators sent pictures or provided other information to the victims to make their schemes appear genuine. When the conspirators used telephone calls, they utilized voice-over-internet-protocol numbers to make it appear as if the calls were originating within the United States near the victims. After developing the relationships, the conspirators asked for money for a variety of reasons related to the scheme.
Once the victim agreed, the conspirators directed the victims to send the money to the defendants, who opened numerous bank accounts in the Western District of Michigan and other places to receive the victims’ money. On some occasions, the defendants received the victims’ money in post office boxes maintained under alias names or through payments made payable to “shell” businesses that the defendants created to receive fraud proceeds. The victims sent the money to the defendants through the mail, bank-to-bank transfers, or through peer-to-peer money transfer services like Zelle or PayPal. After the defendants received the money in their accounts, they transferred the money to each other, to the conspirators overseas, and to their own accounts in Nigeria. According to the indictment, defendants received more than $2 million dollars in their accounts from the scheme between 2017 and 2022.
“Postal Inspectors are committed to protecting Americans from scams that prey on the elderly and vulnerable," said Inspector in Charge Rodney M. Hopkins of the U.S. Postal Inspection Service's Detroit Division. “These individuals manipulated victims into giving away their hard-earned money, and in some instances, their life savings, which caused devastating financial impacts to the victims. Today's indictment is a testament to the dedication of the U.S. Postal Inspection Service and our law enforcement partners in protecting our citizens and working to seek prosecution of the scammers who seek to exploit them.”
“Our Homeland Security Investigations special agents are committed to protecting the citizens of Michigan from this type of fraud,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “Cooperation between our law enforcement agencies is essential to conducting these investigations. I’d like to commend the U.S. Postal Inspection Service and the Kalamazoo Department of Public Safety for their work in dismantling this operation.”
The Homeland Security Investigations, and United States Postal Inspection Service, Grand Rapids offices, are investigating this case. The Kalamazoo Department of Public Safety also provided valuable assistance. Assistant U.S. Attorney Ron Stella is prosecuting the case.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Four Individuals Charged with Laundering Millions from Cryptocurrency Investment Scams Known as ‘Pig Butchering’Read the Press Release
LOS ANGELES – Three Southland residents and a fourth defendant have been named in a seven-count indictment charging them with participating in a scheme to launder the proceeds of cryptocurrency investment scams and other fraudulent schemes involving millions of dollars in victim funds, the Justice Department announced today.
Two of the defendants – Lu Zhang, 36, of Alhambra, and Justin Walker, 31, of Cypress – were arrested Tuesday morning.
The other two defendants – Joseph Wong, 32, Rosemead, and Hailong Zhu, 40, Naperville, Illinois – are currently being sought by federal authorities.
The indictment charges all four defendants with conspiracy to commit money laundering, concealment money laundering, and international money laundering.
Zhang, Walker, Wong and Zhu allegedly conspired to open shell companies and bank accounts to launder victim proceeds of cryptocurrency investment scams – also known as “pig butchering” – and other fraudulent schemes. They allegedly transferred the funds involved in the fraud schemes to domestic and international financial institutions.
The overall fraud scheme in the related pig-butchering syndicate involved at least 284 transactions and resulted in more than $80 million in victim losses. More than $20 million in victim funds were directly deposited into bank accounts associated with the defendants.
According to court documents, pig butchering fraud schemes (a term derived from a foreign-language phrase used to describe these crimes) consist of scammers encountering victims on dating services or social media, or through unsolicited messages or calls, often masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making a business investment using cryptocurrency. Victims are then directed to other members of the scheme operating fraudulent cryptocurrency investment platforms and applications, where victims are persuaded to make financial investments. Once funds are sent to scammer-controlled accounts, the investment platform often falsely shows significant gains on the purported investment, and the victims are thus induced to make additional investments. Ultimately, the victims are unable to withdraw or recover their money, often resulting in significant losses for the victims.
After their arrests, Zhang and Walker appeared yesterday in United States District Court in Los Angeles, where they both entered not guilty pleas. Zhang was ordered detained, and Walker was ordered released on bond. A trial was scheduled for February 6, 2024.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Each of the charges for conspiracy to commit money laundering, concealment money laundering, and international money laundering carry a maximum statutory sentence of 20 years in federal prison.
This case was announced by United States Attorney Martin Estrada, Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, and Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division.
The U.S. Secret Service’s Global Investigative Operations Center is investigating the case.
The case is being prosecuted by Assistant United States Attorneys Maxwell Coll of the Asset Forfeiture and Recovery Section and Nisha Chandran of the Cyber & Intellectual Property Crimes Section, and Justice Department Trial Attorney Stefanie Schwartz. AUSA Coll and Ms. Schwartz are part of the Justice Department’s Computer Crime and Intellectual Property Section’s (CCIPS) National Cryptocurrency Enforcement Team (NCET), which is jointly prosecuting the case with the United States Attorney’s Office.
If you or someone you know is a victim, report it to the www.IC3.gov. In the report, please reference “Pig Butchering PSA” and include as much information as possible in the complaint including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers. Maintain copies of all communications with scammers and records of financial transactions.
Four Individuals Charged for Laundering Millions from Cryptocurrency Investment ScamsRead the Press Release
A seven-count indictment was unsealed yesterday in Los Angeles charging four individuals for their alleged roles in a scheme to launder the proceeds of cryptocurrency investment scams and other fraudulent schemes involving millions of dollars in victim funds.
Lu Zhang, 36, of Alhambra, California; Justin Walker, 31, of Cypress, California; Joseph Wong, 32, Rosemead, California; and Hailong Zhu, 40, Naperville, Illinois, are charged with conspiracy to commit money laundering, concealment money laundering, and international money laundering. Zhang and Walker were arrested and made their initial appearances in federal court yesterday.
According to court documents, Zhang, Walker, Wong, and Zhu allegedly conspired to open shell companies and bank accounts to launder victim proceeds of cryptocurrency investment scams, also known as “pig butchering,” and other fraudulent schemes. They transferred the funds to domestic and international financial institutions. The overall fraud scheme in the related pig-butchering syndicate involved at least 284 transactions and resulted in more than $80 million in victim losses. More than $20 million in victim funds were directly deposited into bank accounts associated with the defendants.
According to court documents, “pig butchering” fraud schemes (a term derived from a foreign-language phrase used to describe these crimes) consist of scammers encountering victims on dating services, social media, or through unsolicited messages or calls, often masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making a business investment using cryptocurrency. Victims are then directed to other members of the scheme operating fraudulent cryptocurrency investment platforms and applications, where victims are persuaded to make financial investments. Once funds are sent to scammer-controlled accounts, the investment platform often falsely shows significant gains on the purported investment, and the victims are thus induced to make additional investments. Ultimately, the victims are unable to withdraw or recover their money, often resulting in significant losses for the victims.
If convicted, Zhang and Walker face a maximum penalty of 20 years in prison.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Martin Estrada for the Central District of California, and Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division made the announcement.
The U.S. Secret Service’s Global Investigative Operations Center is investigating the case.
The case is jointly prosecuted by the U.S. Attorney’s Office for the Central District of California and the Computer Crime and Intellectual Property Section’s (CCIPS) National Cryptocurrency Enforcement Team (NCET), which was established to combat the growing illicit use of cryptocurrencies and digital assets. CCIPS’ NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also works to set strategic priorities regarding digital asset technologies, identify areas for increased investigative and prosecutorial focus, and lead the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
CCIPS/NCET Trial Attorney and Assistant U.S. Attorney Maxwell Coll for the Central District of California, CCIPS/NCET Trial Attorney Stefanie Schwartz, and Assistant U.S. Attorney Nisha Chandran for the Central District of California are prosecuting the case.
If you or someone you know is a victim, report it to the IC3.gov. In the report, please reference “Pig Butchering PSA” and include as much information as possible in the complaint including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers. Maintain copies of all communications with scammers and records of financial transactions.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Texas trooper imprisoned for to lying to FBIRead the Press Release
McALLEN, Texas – A 36-year-old Pharr resident has been sentenced for lying to federal authorities during a drug investigation, announced U.S. Attorney Alamdar S. Hamdani.
Pablo Talavera Jr., former Texas Department of Public Safety (DPS) trooper, pleaded guilty Aug. 28.
U.S. District Judge Micaela Alvarez has now ordered Talavera to serve 18 months in federal prison to be immediately followed by two years of supervised release. At the hearing, the court heard opposing arguments regarding the appropriate sentence. Judge Alvarez imposed a greater sentence due to Talavera’s position as a law enforcement officer when he committed the offense.
In 2019, law enforcement initiated an investigation targeting an organization responsible for the transportation of multi-kilogram quantities of meth, heroin and cocaine from the Rio Grande Valley to Tennessee. Talavera’s father was the organization’s leader.
The investigation revealed Talavera used his position as a DPS trooper to assist his father by running license plates of vehicles believed to be that of law enforcement. Talavera initially lied to authorities. He ultimately admitted to assisting his father, who is now serving 21 years in federal prison.
Talavera was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Homeland Security Investigations conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of the Texas Rangers. Assistant U.S. Attorney Jesse Salazar prosecuted the case.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Former Special Agent in Charge of the New York FBI Counterintelligence Division Sentenced to 50 Months for Conspiring to Violate U.S. Sanctions on RussiaRead the Press Release
A former Special Agent in Charge (SAC) of the FBI Counterintelligence Division in New York, was sentenced to 50 months in prison and ordered to pay a $40,000 fine for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to commit money laundering in connection with his 2021 agreement to provide services to Oleg Deripaska, a sanctioned Russian oligarch.
According to court documents and statements made in court proceedings, Charles McGonigal, 55, of New York, New York, pleaded guilty in August.
“Charles McGonigal helped advance the interests of a sanctioned Russian oligarch, breaking his oath to safeguard our nation and uphold its laws,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence holds him accountable for this betrayal and demonstrate this department’s commitment to deny designated individuals the means to circumvent U.S. sanctions.”
“Charles McGonigal violated the trust his country placed in him by using his high-level position at the FBI to prepare for his future in business,” said U.S. Attorney Damian Williams for the Southern District of New York. “Once he left public service, he jeopardized our national security by providing services to Oleg Deripaska, a Russian tycoon who acts as Vladimir Putin’s agent. Today’s sentence is a reminder that anyone who violates United States sanctions — particularly those in whom this country has placed its trust — will pay a heavy penalty.”
“Charles McGonigal’s conduct can be summed up in one word – betrayal. He betrayed everything he once swore to protect.” said Executive Assistant Director Larissa L. Knapp of the National Security Branch. “Today’s sentencing is a message to all, no matter who they are, the FBI does not tolerate those who choose to jeopardize US National Security. Prioritizing personal gains over one’s oath to protect the American people and uphold the Constitution, will be prosecuted to the full extent of the law.”
In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property of individuals determined by the U.S. Treasury to be responsible for or complicit in actions or policies that threatened the security, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide support to individuals or entities engaging in such activities. Executive Order 13660 and regulations issued pursuant to it prohibit providing or receiving any funds, goods, or services by, to, from, or for the benefit of any person designated by the U.S. Treasury.
On April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Oleg Deripaska as a Specially Designated National in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to U.S. national security and foreign policy. According to the U.S. Treasury, Deripaska was sanctioned for having acted or purported to act on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation and for operating in the energy sector of the Russian Federation economy. The U.S. District Court for the District of Columbia affirmed the sanctions against Deripaska. It found, among other things, that OFAC’s determination that Deripaska acted as an agent of Russian President Vladimir Putin was supported by the evidence.
As an FBI official, McGonigal helped investigate Deripaska and other Russian oligarchs. As a SAC, he supervised investigations into sanctions violations. Yet at the same time, he began building a relationship with an agent of Deripaska, in the hopes of doing business with Deripaska after he retired from the FBI.
In 2021, McGonigal conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on Deripaska in 2018. Specifically, following his negotiations with Deripaska’s agent, McGonigal agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska. While negotiating and performing services for Deripaska, McGonigal and the agent attempted to conceal Deripaska’s involvement by, among other means, not directly naming Deripaska in electronic communications, using shell companies as counterparties in the contract that outlined the services to be performed, using a forged signature on that contract, and using the same shell companies to send and receive payment from Deripaska. McGonigal hoped to do millions of dollars in business with Deripaska, but FBI agents from the same division McGonigal used to lead foiled his scheme after only a few months of operation.
The FBI New York Field Office’s Counterintelligence Division investigated the case, with valuable assistance from U.S. Customs and Border Protection as well as the New York City Police Department.
Assistant U.S. Attorneys Hagan Scotten, Rebecca T. Dell, and Derek Wikstrom for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section.
Former Special Agent in Charge of the New York FBI Counterintelligence Division Sentenced to 50 Months in Prison for Conspiring to Violate U.S. Sanctions on RussiaRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, announced today that CHARLES MCGONIGAL, a former Special Agent in Charge (“SAC”) of the FBI’s Counterintelligence Division in New York, was sentenced by U.S. District Judge Jennifer H. Rearden to 50 months in prison for conspiring to violate the International Emergency Economic Powers Act and to commit money laundering in connection with his 2021 agreement to provide services to Oleg Deripaska, a sanctioned Russian oligarch.
U.S. Attorney Damian Williams said: “Charles McGonigal violated the trust his country placed in him by using his high-level position at the FBI to prepare for his future in business. Once he left public service, he jeopardized our national security by providing services to Oleg Deripaska, a Russian tycoon who acts as Vladimir Putin’s agent. Today’s sentence is a reminder that anyone who violates United States sanctions — particularly those in whom this country has placed its trust — will pay a heavy penalty.”
Assistant Director in Charge James Smith said: “Charles McGonigal was justly punished today for knowingly aiding the agents of foreign adversaries who targeted the United States through his fraud and deception to satisfy his own greed. The FBI is determined to ensure any individual who commits federal crimes – even a former FBI Special Agent in Charge – is held accountable to face the consequences. This sentence marks not only an important outcome by the U.S. justice system, but also reflects the dedication of the men and women of the FBI to investigate crimes, regardless of who commits them.”
Assistant Attorney General Matthew G. Olsen said: “Charles McGonigal helped advance the interests of a sanctioned Russian oligarch, breaking his oath to safeguard our nation and uphold its laws. Today's sentence holds him accountable for this betrayal and demonstrates this department’s commitment to deny designated individuals the means to circumvent U.S. sanctions.”
According to publicly filed court documents and statements made in court proceedings:
In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property of individuals determined by the U.S. Treasury to be responsible for or complicit in actions or policies that threatened the security, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide support to individuals or entities engaging in such activities. Executive Order 13660 and regulations issued pursuant to it prohibit providing or receiving any funds, goods, or services by, to, from, or for the benefit of any person designated by the U.S. Treasury.
On April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Oleg Deripaska as a Specially Designated National in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to U.S. national security and foreign policy. According to the U.S. Treasury, Deripaska was sanctioned for having acted or purported to act on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation and for operating in the energy sector of the Russian Federation economy. The U.S. District Court for the District of Columbia affirmed the sanctions against Deripaska. It found, among other things, that OFAC’s determination that Deripaska acted as an agent of Russian President Vladimir Putin was supported by the evidence.
As an FBI official, MCGONIGAL helped investigate Deripaska and other Russian oligarchs. As an SAC, he supervised investigations into sanctions violations. Yet at the same time, he began building a relationship with an agent of Deripaska, in the hopes of doing business with Deripaska after he retired from the FBI.
In 2021, MCGONIGAL conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on Deripaska in 2018. Specifically, following his negotiations with Deripaska’s agent, MCGONIGAL agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska. While negotiating and performing services for Deripaska, MCGONIGAL and the agent attempted to conceal Deripaska’s involvement by, among other means, not directly naming Deripaska in electronic communications, using shell companies as counterparties in the contract that outlined the services to be performed, using a forged signature on that contract, and using the same shell companies to send and receive payment from Deripaska. MCGONIGAL hoped to do millions of dollars in business with Deripaska, but FBI agents from the same division MCGONIGAL used to lead foiled his scheme after only a few months of operation.
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In addition to the prison sentence, MCGONIGAL, 55, of New York, New York, was ordered to pay a fine of $40,000, to forfeit $17,500, and sentenced to three years of supervised release.
Mr. Williams praised the outstanding work of the FBI New York Field Office’s Counterintelligence Division and the valuable assistance from U.S. Customs and Border Protection as well as the New York City Police Department.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Hagan Scotten, Rebecca T. Dell, and Derek Wikstrom are in charge of the prosecution with assistance from Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section.
Former Security Engineer for International Technology Company Pleads Guilty to Hacking Two Decentralized Cryptocurrency ExchangesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty plea today of SHAKEEB AHMED in connection with his hack of two separate decentralized cryptocurrency exchanges, one of which was the July 2022 hack of Nirvana Finance. AHMED pled guilty to computer fraud before U.S. Magistrate Judge Ona T. Wang. AHMED also agreed to forfeit over $12.3 million, including forfeiture of approximately $5.6 million in fraudulently obtained cryptocurrency.
U.S. Attorney Damian Williams said: “Five months ago, my Office announced the first ever arrest involving an attack on a smart contract. Today, senior security engineer Shakeeb Ahmed pled guilty and agreed to return all of the stolen crypto to his victims. That arrest is now the first ever conviction for such a hack. Ahmed’s plea has also resulted in him further admitting that he carried out a previously unsolved second multi-million-dollar hack, this time of decentralized finance protocol Nirvana Finance. In total, Ahmed used his technical knowhow to steal over $12 million and tried to cover his tracks by swapping stolen crypto for Monero, using cryptocurrency mixers, hopping across blockchains, and utilizing overseas crypto exchanges. Today’s conviction shows that no matter how sophisticated the methods used, fraud is fraud, and we will swiftly catch and convict you.”
According to the charging documents and other filings and statements made in court:
In July 2022, AHMED executed hacks on two separate decentralized cryptocurrency exchanges, an exchange referred to herein as the “Crypto Exchange” and Nirvana Finance (“Nirvana”). In July 2023, AHMED was publicly charged with the hack of the Crypto Exchange. Today’s guilty plea is the first public filing acknowledging AHMED’s responsibility for a second sophisticated, multi-million dollar hack he executed in July 2022 of Nirvana.
At the time of both attacks, AHMED, a U.S. citizen, was a senior security engineer for an international technology company whose resume reflected skills in, among other things, reverse engineering smart contracts and blockchain audits, which are some of the specialized skills AHMED used to execute the hacks.
The Crypto Exchange allowed users to exchange different kinds of cryptocurrencies, and paid fees to users who deposited cryptocurrency to provide liquidity on the Crypto Exchange.
On or about July 2 and 3, 2022, AHMED carried out an attack on the Crypto Exchange by exploiting a vulnerability in one of the Crypto Exchange’s smart contracts and inserting fake pricing data to fraudulently cause that smart contract to generate approximately $9 million dollars’ worth of inflated fees that AHMED did not legitimately earn. AHMED was able to withdraw said fees from the Crypto Exchange in the form of cryptocurrency. This conduct defrauded the Crypto Exchange and its users whose cryptocurrency AHMED had fraudulently obtained.
After he stole the fees he never legitimately earned, AHMED had communications with the Crypto Exchange in which he agreed to return all of the stolen funds except for $1.5 million if the Crypto Exchange agreed not to refer the attack to law enforcement.
Nirvana was a second decentralized finance protocol. Nirvana bought and sold its cryptocurrency token, ANA. Nirvana was designed so that when a user purchased a substantial quantity of ANA, the price of ANA increased, and when a user sold a substantial quantity of ANA, the price of ANA decreased.
On or about July 28, 2022, a few weeks after the hack of the Crypto Exchange, AHMED carried out an attack on Nirvana in which he took out a flash loan for approximately $10 million, used those funds to purchase ANA from Nirvana, and used an exploit he discovered in Nirvana’s smart contracts to purchase the ANA at its initial, low price, rather than at the higher price that Nirvana was designed to charge him in light of the size of his purchase. When the price of ANA updated to reflect his large purchase, AHMED resold the ANA he had purchased to Nirvana at the new, higher price, resulting in a profit to him of approximately $3.6 million. Nirvana offered AHMED a “bug bounty” of as much as $600,000 to return the stolen funds, but AHMED instead demanded $1.4 million, did not reach agreement with Nirvana, and kept all the stolen funds. The $3.6 million AHMED stole represented approximately all the funds possessed by Nirvana, which as a result shut down shortly after AHMED’s attack.
AHMED laundered the millions that he stole from the Crypto Exchange and from Nirvana to conceal their source and ownership, using sophisticated techniques including token-swap transactions, “bridging” fraud proceeds from the Solana blockchain over to the Ethereum blockchain, exchanging fraud proceeds into Monero, an anonymized and particularly difficult cryptocurrency to trace, using overseas cryptocurrency exchanges, and using cryptocurrency mixers such as Samourai Whirlpool.
After the attacks, AHMED searched online for information about the hacks, his own criminal liability, criminal defense attorneys with expertise in similar cases, law enforcement’s ability to successfully investigate the attacks, and fleeing the U.S. to avoid criminal charges. For example, approximately two days after the hack of the Crypto Exchange, AHMED conducted an internet search for the term “defi hack,” read several news articles about the hack of the Crypto Exchange, and visited several pages on the Crypto Exchange’s website. In the days after the hack of Nirvana, AHMED conducted internet searches for the term “defi hacks prosecution” and searches related to the charges in the Indictment, including the terms “wire fraud” and “evidence laundering.” Finally, AHMED conducted internet searches or visited websites related to his ability to flee the U.S., avoid extradition, and keep his stolen cryptocurrency. He searched for the terms “can I cross border with crypto,” “how to stop federal government from seizing assets,” and “buying citizenship.” He also visited a website titled “16 Countries Where Your Investments Can Buy Citizenship . . .”
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AHMED, 34, of New York, New York, pled guilty to one count of computer fraud, which carries a maximum sentence of five years in prison. AHMED also agreed to pay restitution to his victims totaling $5,071,074.23.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. AHMED is scheduled to be sentenced by United States District Judge Victor Marrero on March 13, 2024.
Mr. Williams praised the outstanding work of Homeland Security Investigations and Internal Revenue Service – Criminal Investigation. Mr. Williams also thanked the U.S. Attorney’s Office for the Southern District of California for its assistance in the investigation.
The case is being prosecuted by the Office’s Money Laundering & Transnational Criminal Enterprises Unit and Complex Frauds & Cybercrime Unit. Assistant U.S. Attorneys David R. Felton and Kevin Mead are in charge of the prosecution.
Former Sailor Sentenced to 24 Months for Cyberstalking and ThreatsRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 24 months in prison for sending threatening messages to fellow sailors.
According to court documents, Justin Leung, 23, engaged in a course of conduct against at least five women, including threatening to kidnap, violently rape, and humiliate them or their female relatives through the degradation of their bodies. Leung targeted some of these victims after they had rejected his romantic advances. Many of the victims were active duty sailors or veterans of the United States Navy.
Over the course of several months in 2023, Leung used the Internet to send unwanted and threatening messages to the victims, including obscene messages depicting his genitalia and himself masturbating. At least one victim felt fearful enough to take protective measures as a direct result of Leung’s threats. Leung’s phone records reveal misogynistic statements like “women bring nothing to the table except what there[sic] bodies have to offer” and women “shouldn’t be allowed to choose [their partners].”
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Mack Hickman, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Jamar K. Walker.
Special Assistant U.S. Attorney Victoria Liu prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-55.
Former Resident of Clarendon Sentenced to 25 Years in Prison for Child Sexual Exploitation OffensesRead the Press Release
ERIE, Pa. - A former resident of Clarendon, Pennsylvania, has been sentenced in federal court to 25 years in prison, lifetime supervised release, and ordered to pay $8,300 in restitution, on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.
United States District Judge Stephanie Haines imposed the sentence on Jeffrey Colin Rogers, age 60.
The evidence presented at trial established that in November 2017, Rogers used his cellphone to take multiple sexually explicit photos of two minors after providing them marijuana and alcohol at his apartment in Sheffield, Pennsylvania. Rogers then stored the photos on his phone. The Pennsylvania State Police discovered the illegal images after executing a search warrant at Rogers’ apartment in February 2018 and seizing Rogers’ phone.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Rogers.
Former Maryland Correctional Officer Sentenced to Eight Years in Federal Prison for Civil Rights ViolationsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced former Correctional Officer Owen Nesmith, age 54, of Baltimore, Maryland, today to eight years in federal prison, followed by three years of supervised release, for three counts of deprivation of rights under color of law and to making a false statement, all related to his sexual contact with three victims who were incarcerated at the Maryland Correctional Institution Jessup.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Carolyn J. Scruggs of the Maryland Department of Public Safety and Correctional Services.
According to his guilty plea, Nesmith was employed as a Correctional Officer (“CO”) Lieutenant at Maryland Correctional Institution Jessup (“MCIJ”). Nesmith admitted that from 2005 to 2017, he deprived three incarcerated individuals of their civil rights by sexually assaulting them. Specifically, in February 2005, Nesmith followed Victim 1 back to his cell. No other inmates were present in the housing unit at that time. Nesmith told Victim 1 that he wanted Victim 1 to perform a sex act on Nesmith, which he did. Victim 1 did not consent to this act, which was a deprivation of rights under color of law.
As detailed in the plea agreement, in July 2015, Victim 2 needed an identification badge (“ID”) and Nesmith offered to take Victim 2 to the ID office. On the way to the office, Nesmith grabbed Victim 2’s genital area, then shut a gate in the area and told Victim 2 that he needed to conduct a strip search. After removing Victim 2’s pants, Nesmith sexually assaulted Victim 2, causing him pain and bodily injury. Nesmith further admitted that in December 2017, he engaged in a sex act with Victim 3, without his consent, when Victim 3 came to Nesmith’s office to discuss obtaining a job in sanitation. At that time, Nesmith was the acting lieutenant of the building and Victim 3 needed Nesmith’s approval to obtain that job. Finally, Nesmith admitted that when questioned by law enforcement, he falsely stated that he had never had any inappropriate relationships or sexual contact with any inmates while he was at MCIJ.
U.S. Attorney Erek L. Barron commended the FBI and the Maryland Department of Public Safety and Correctional Services for their work in the investigation. Mr. Barron thanked Assistant United States Attorneys Sean R. Delaney and Katelyn Semales, 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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Former Idaho Resident Indicted as a “Money Mule” for Laundering Funds from Wire Fraud and Bank Fraud SchemesRead the Press Release
BOISE – Andrew Samargis, 69, a former Idaho resident was charged yesterday for conspiring to commit money laundering and operating an unlicensed money transmitting business by collecting money from various wire and bank frauds schemes and then sending the funds to his coconspirators, U.S. Attorney Josh Hurwit announced today.
The indictment alleges that from approximately October 2017 through July 2020, Samargis conspired with others to operate as a money mule by receiving at least $1 million of financial fraud proceeds into accounts that he controlled and then conducting financial transactions with the proceeds to disguise the nature and source of the funds. The wire fraud and bank fraud schemes included credit card fraud, counterfeit check-cashing fraud, and COVID-19 funding fraud. A money mule is a person who transfers illegally acquired money on behalf of other individuals and typically receives compensation for providing their services.
It is further alleged that Samargis transmitted the proceeds of the fraud schemes to coconspirators through cash withdrawals, cashier’s checks, and wire transfers, at times disguising the purpose of the transfer by providing false descriptions to the banks. Despite banks repeatedly closing his accounts due to fraud, Samargis continued to serve as a money mule for the fraud schemes.
Samargis is charged with one count of conspiracy to commit money laundering and one count of operating an unlicensed money transmitting business. If convicted of the most serious crime, Samargis faces a maximum penalty of 20 years in federal prison, a $500,000 fine, and three years of supervised release.
U.S. Attorney Hurwit credited the investigation by the United States Secret Service, Spokane Resident Office, together with the assistance from the United States Secret Service Tucson and Las Vegas Offices, which led to the charges. Assistant U.S. Attorney Brittney Campbell is prosecuting the case.
This month, the U.S. Attorney’s Office, along with federal, state, and local law enforcement partners, have released a series of PSAs as part of the “Don’t Click December” Consumer Protection Campaign. This campaign is an effort to raise public awareness and alert Idahoans to dangers from online scams and fraud scheme. For more information, and to view the PSAs, please visit: justice.gov/usao-id/public-service-announcements
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Florida Man Charged with Health Care Fraud, Wire Fraud, and Kickback ConspiracyRead the Press Release
NEWARK, N.J. – A Florida man was arraigned today on charges relating to his role in a scheme to defraud Medicare by billing for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Eric Van Vleet, 28, of Delray Beach, Florida, is charged in an eight-count indictment with conspiracy to commit health care fraud and wire fraud, health care fraud, conspiracy to violate the federal anti-kickback statute, and payment of illegal kickbacks. Van Vleet appeared today before U.S. District Judge Esther Salas in Newark federal court and was released on $100,000 unsecured bond.
According to the indictment:
From February 2018 to September 2019, Van Vleet operated Hype Med LLC, which generated medically unnecessary prescriptions through a telemarketing and telemedicine scheme. As part of the health care, wire fraud, and kickback conspiracy, Van Vleet and Hype Med identified Medicare beneficiaries to target for expensive drugs. Call center employees contacted the beneficiaries by telephone to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, migraine medication, as well as a combination of prescription medications intended to be used as a “foot soak.” Van Vleet and Hype Med then transmitted recordings of telephone calls with the beneficiaries, together with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. Hype Med paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions.
Van Vleet then directed the prescriptions to pharmacies, including Apogee Bio-Pharm LLC, located in Edison, New Jersey, with which Hype Med had a kickback arrangement. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare. The pharmacies, including Apogee, then paid a portion of each reimbursement to Hype Med as a kickback. Van Vleet and Hype Med received at least $343,684 in kickback payments from the owners of Apogee. The principals of Apogee – William Welwart, Ethan Welwart, and Gary Kaczka – are charged with health care fraud and related offenses in a separate indictment. Elan Yaish, former president of Apogee, previously pleaded guilty to an information charging conspiracy to violate the federal anti-kickback statute.
The health care fraud and wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison; the health care fraud charges carry a maximum potential penalty of 10 years in prison; the charge of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years in prison; and the charges of payment of illegal kickbacks are punishable by 10 years in prison. All of the counts are also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.
Attorney for the United States Khanna credited special agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, and the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark.
The charges and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
vanvleet.indictment.pdfFishers Brothers Sentenced to More Than 35 Years Combined for Manufacturing and Distributing Machine guns Intended for ISISRead the Press Release
INDIANAPOLIS- Moyad Dannon, 25, of Fishers, Indiana, has been sentenced to 200 months in federal prison, followed by a lifetime of supervised release, after pleading guilty to Attempting to Provide Material Support or Resources, namely, firearms, to a Designated Foreign Terrorist Organization. His brother, Mahde Dannon was sentenced to twenty years in federal prison in October 2021, after pleading guilty to the same charges.
According to court documents, in June of 2018, the Dannon brothers devised a scheme to deliver stolen firearms to a convicted felon who was cooperating with the FBI.
Between July 2018 and December 2018, the Dannon brothers sold a number of illegally obtained firearms to the cooperating individual. Around the same time period, the Dannon brothers also began to manufacture untraceable “ghost guns” by purchasing firearms parts online and assembling those parts into fully-functioning, .223 caliber semi-automatic rifles, which they sold to the FBI undercover agent.
In late 2018, the Dannon brothers began manufacturing untraceable, fully automatic, .223 caliber rifles, using much the same process they used to manufacture the semi-automatic rifles, and selling those to the undercover agent and confidential informant (CI).
Shortly thereafter, Moyad Dannon accompanied the undercover agent to a location near the U.S. southwest border in an effort to market that rifle, and additional fully-automatic rifles, to a potential buyer who was also cooperating with the FBI. During that trip, Moyad Dannon learned that the potential buyer sought to ship the weapons to a location in the Middle East, where they would be used by ISIS. ISIS is a designated foreign terrorist organization pursuant to Section 219 of the Immigration and Nationality Act.
Despite learning of the ultimate destination of the weapons, the Dannon brothers agreed to manufacture and sell at least 55 additional fully automatic “ghost guns” to the buyer from the American southwest border, believing those weapons would be shipped to the Middle East, to ISIS and its members.
On May 15, 2019, the Dannon brothers manufactured five untraceable, fully automatic, .223 caliber rifles from parts they had purchased online. At that time, the Dannon brothers were fully aware that the plan was to send the five automatic rifles overseas to ISIS. After building the fully automatic rifles, the Dannon brothers sold all five weapons to undercover FBI agents posing as employees of the buyer from near the southwest border. The Dannon brothers were arrested immediately thereafter by the FBI.
Between February and May of 2019, Moyad Dannon had numerous and extensive conversations with an undercover agent who he believed was a member of ISIS then fighting in Syria. During those conversations, Moyad expressed his desire to travel from Indiana to ISIS-controlled areas of Syria, where he sought to utilize his knowledge of firearms and other skills to provide direct military assistance to ISIS in its’ fight against the United States and Syrian government.
In a search following his arrest, FBI agents located a flash drive on Moyad’s keychain containing approximately 16 gigabytes of ISIS propaganda, including graphically violent videos depicting ISIS fighters beheading civilians and hostages, and ISIS snipers killing U.S. military personnel. Identical ISIS propaganda videos were discovered on a laptop computer.
“Violent extremists inspired by events abroad continue to pose a threat to our local communities and to our national security. Indiana is not immune from the poison of radicalization, fueled by terrorist propaganda available online,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “For nearly a year, these defendants worked persistently to arm murderous terrorists with deadly, illegal weapons. Cases like this demonstrate the need for law enforcement agencies to use all available lawful means to identify, disrupt, and prosecute national security threats here at home. Thanks to the tremendous efforts of the FBI’s Joint Terrorism Task Force and the Fishers Police Department, these dangerous men have been held accountable for their actions and our communities will be safe from them for many years.”
“The defendants in this case fused together two grave threats to Americans’ security by attempting to support a brutal terrorist organization through the illicit manufacture of ghost guns,” said Deputy Attorney General Lisa O. Monaco. “Just as we’ve done in the fight against terrorism, the Justice Department is committed to prevention—stopping gun violence before it happens by cracking down on the illegal production and trafficking of ghost guns.”
The FBI’s Indianapolis Field Office’s Joint Terrorism Task Force and the Fishers, Indiana, Police Department investigated this case. The sentences were imposed by U.S. District Court Judge Richard L. Young.
U.S. Attorney Myers thanked Assistant U.S. Attorneys for the Southern District of Indiana Matthew Rinka, Kate Olivier, Kelly Rota, and Department of Justice Trial Attorney Paul Casey, of the National Security Division’s Counterterrorism Section, who prosecuted this case.
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