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24 January 2024
Federal Jury Convicts San Felipe Man of Sexual AbuseRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that on Jan. 23, 2024, a federal jury returned two guilty verdicts against Kyle Aguilar, 41, of San Felipe and an enrolled member of the San Felipe Pueblo, after four hours of deliberation. The jury convicted Aguilar of two counts of abusive sexual contact. Judge James O. Browning presided.
A federal grand jury issued a superseding indictment against Aguilar on Oct. 4, 2023. According to evidence presented at trial and other publicly available court records, between Aug. 13, 2016, and Feb. 13, 2017, when Aguilar was drunk, he touched Jane Doe’s genitalia and breasts over her clothing. Jane Doe locked herself in a room to watch a movie. Aguilar unlocked the door and came into the room. He started to massage Jane Doe's back, before he touched her breasts and genitals over the clothes. Jane Doe stated she froze when this happened as it had never happened before. She then claimed she heard her sister calling for her and left the room. Jane Doe was between the ages of 12 and 16 when this happened. The incidents came to light during a visit to the doctor in February of 2017, when Jane Doe told her doctor that Aguilar had inappropriately touched her on more than one occasion when he was drunk.
Aguilar will remain on conditions of release pending sentencing, which has not been scheduled. At sentencing, Aguilar faces up to four years in prison.
The Bureau of Indian Affairs investigated this case. Assistant United States Attorneys Nicholas J. Marshall and Mia Ulibarri-Rubin are prosecuting the case.
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Federal Grand Jury Indicts Louisville Man for Carjacking and Firearms OffensesRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on November 7, 2023, charging a local man with carjacking, brandishing a firearm in furtherance of a crime of violence, and possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Rana Saoud of the Homeland Security Investigations (HSI) Nashville, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
According to the indictment, Octavius Long, 46, was charged with carjacking, brandishing a firearm in furtherance of a crime of violence, and possession of a firearm by a convicted felon, all of which occurred on May 8, 2023. Long was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On February 16, 2016, in Jefferson Circuit Court, Long was convicted of possession of a controlled substance, second offense.
On May 22, 2014, in Jefferson Circuit Court, Long was convicted of trafficking in a controlled substance in the first degree, less than 4 grams of cocaine, and possession of a controlled substance in the first degree, cocaine.
On August 29, 2003, in Grant Circuit Court, Long was convicted of assault in the third degree, corrections officer.
On November 2, 2000, in Jefferson Circuit Court, Long was convicted of possession of a handgun by a convicted felon, and possession of a controlled substance, cocaine.
On June 16, 1999, in Jefferson Circuit Court, Long was convicted of escape in the second degree.
On January 24, 2024, Long made an initial court appearance before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky. He remains in federal custody pending trial. If convicted, he faces a minimum sentence of 7 years in prison and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the LMPD, HSI, and the FBI.
Assistant U.S. Attorney Joshua R. Porter is prosecuting this case.
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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Farrell Resident Pleads Guilty to Drug Trafficking and Firearm ChargesRead the Press Release
PITTSBURGH, Pa. – A resident of Farrell, Pennsylvania, pleaded guilty in federal court to drug trafficking and firearm violations, United States Attorney Eric G. Olshan announced today.
Dimetrius Morris, 39, pleaded guilty before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that, on February 20, 2020, Morris possessed with the intent to distribute cocaine, fentanyl, and methamphetamine, as well as a firearm in furtherance of a drug trafficking crime on that date.
Judge Colville scheduled sentencing for May 22, 2024. For the drug trafficking charge, the law provides for a maximum total sentence of not more than 20 years in prison, a fine of not more than $1,000,000, or both. For the firearms offense, the maximum penalty is not less than five years in prison and up to life, a fine of not more than $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the government.
The Sharon Police Department, the Federal Bureau of Investigation, the Farrell Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the prosecution of Morris. 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 of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
FBI’s ‘Most Wanted Fugitive’ Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Cory T. Brown, 34, was sentenced by U.S. District Judge Greg Kays to 10 years in federal prison without parole, the statutory maximum penalty.
On March 30, 2023, Brown was convicted at trial of one count of being a felon in possession of a firearm.
Evidence introduced during the trial indicated that Brown was in possession of a Glock 10mm semi-automatic pistol with an extended magazine on Oct. 14, 2021. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brown has prior felony convictions for carrying a concealed weapon and resisting a lawful stop.
Brown, who was on the FBI’s Most Wanted Fugitive List, was at the residence of co-defendant Myron A. McMillian, 32, of Independence, Mo., on Oct. 14, 2021. Brown had been indicted in a drug-trafficking conspiracy and was a fugitive for two years. (He was later acquitted of the conspiracy charge at trial.)
FBI agents were conducting surveillance of the apartment complex, and several tactical teams approached the apartment building that evening. Before officers could announce their presence, McMillian and two other people ran from the rear door of the apartment. Brown, wearing a red balaclava pulled over his face with only his eyes visible, was arrested near the back door of the apartment. Brown had $11,072 in cash in his pocket and identity documents with his photo but another person’s name. Officers later searched the silver 2021 Mercedes they had seen Brown driving and found a black Louis Vuitton backpack that contained $5,000 in cash.
Officers executed a search warrant at McMillian’s apartment, where they found eight firearms, approximately 3.5 kilograms of marijuana, and $3,188 in cash.
On the kitchen counter, officers found a Smith & Wesson .40-caliber semi-automatic pistol, a Glock 10mm semi-automatic pistol with an extended magazine, a Smith & Wesson .40-caliber semi-automatic pistol, and marijuana. Officers also found an Anderson Arms AM-15 .556-caliber firearm and a Romarm Cugir Draco 7.62x39mm pistol in the kitchen area. DNA evidence indicated the Glock pistol had been in Brown’s possession.
In McMillian’s bedroom, officers found a backpack that contained marijuana and approximately $800 in cash. Officers also found a duffel bag that contained approximately 2.5 kilograms of marijuana. Under the mattress of the bed, they found a Smith and Wesson .40-caliber semi-automatic pistol. On the dresser, investigators found marijuana and approximately $1,580 in cash. In a dresser drawer, they found marijuana and approximately $800 in cash.
Officers found a New Frontier Armory .223-caliber rifle in the main living room area, on the floor near the fireplace, an FNH 5.7mm semi-automatic pistol on the arm of the couch, and a Glock .45-caliber semi-automatic pistol on a shelf.
McMillian pleaded guilty to two counts of possessing marijuana with the intent to distribute and was sentenced on Sept. 8, 2023, to 14 months in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorneys Ashleigh A. Ragner and Robert M. Smith. It was investigated by the FBI, the Kansas City, Mo., Police Department, and the Independence, Mo., Police Department.
Project Safe Neighborhoods
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.
Essex County Tax Preparer Admits $4.4 Million Conspiracy to Defraud IRSRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, tax preparer admitted that he conspired to obtain over $4.4 million by defrauding the IRS, U.S. Attorney Philip R. Sellinger announced today.
Omar Khater, 33, of Fairfield, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court on Jan. 23, 2024, to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. Khater’s conspirator, Walid Khater, 38, of Arizona, is charged by complaint and his case remains pending.
U.S. Attorney Philip R. Sellinger“This defendant has admitted his role in an elaborate scheme that used stolen personal identifying information and fabricated tax returns to bilk the IRS of millions of dollars. Working with our law enforcement partners, we will root out these illegal and dangerous schemes, and those who perpetrate them can expect the same result as Omar Khater.”
“With this year’s filing just around the corner, today’s plea is a stark reminder as to how valuable your personally identifiable information is to criminals and how important it is to safeguard the information,” Tammy Tomlins, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “Along with our law enforcement partners, we will vigorously pursue individuals who steal other people’s identities to enrich themselves through the filing of fraudulent tax returns.”
“Khater is now admitting he worked with others to falsely file returns based on stolen identities and pocketed the refunds,” FBI – Newark Special Agent in Charge James E. Dennehy said. “We trust tax preparers with a tremendous amount of vital information about our lives, and when they use it to break the law it's unsettling to say the least. Khater fleeced the IRS out of millions of dollars, but he's the one now paying for his fraud.”
According to documents filed in this case and statements made in court:
Omar and Walid Khater were relatives who worked together and with others to steal victims’ identities, which they used to file false tax returns and fraudulently receive tax refunds from the IRS. They electronically submitted tax documents to the IRS falsely claiming that the individual taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings. The false filings also claimed tax withholdings on the purported income or gambling winnings that entitled the tax filer to refund payments from the IRS. The Khaters and others typically submitted these fraudulent tax filings using the names and personal identifying information of victims without the victims’ knowledge or permission. The fraudulent filings caused the IRS to pay lucrative tax refunds, which the Khaters and others directed to various bank accounts that they controlled. This scheme caused the U.S. Treasury to issue tax refunds $4.49 million, which the Khaters and others diverted to bank accounts they controlled in New Jersey and elsewhere.
The count of conspiracy to commit wire fraud is punishable by a maximum of 20 years in prison and the count of conspiracy to defraud the IRS is punishable by a maximum of five years in prison is punishable by a maximum of five years in prison. Both counts are also punishable by a fine of $250,000, or twice the gross loss or gain caused by the offense, whichever is greatest. Sentencing is scheduled for June 12, 2024.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and special agents of FBI-Newark, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Fatime Meka Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark.
The charges and allegations against Walid Khater are merely accusations, and he is presumed innocent unless and until proven guilty.
khater.information.pdfDrug Traffickers Sentenced to Combined 21 Years in PrisonRead the Press Release
Three defendants have been sentenced to a combined 21 years in federal prison for their roles in a drug trafficking conspiracy, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Brian Daniel Ramirez, 45, Rodney Leon Dunn, 63, and Robby Layne Dunn, 62, were indicted for Conspiracy to Possess with Intent to Distribute a Controlled Substance in August of 2023. In October of 2023, Mr. Ramirez, Mr. Rodney Dunn, and Mr. Robby Dunn plead guilty to one count each of Conspiracy to possess with intent to distribute methamphetamine.
On January 18, 2024, U.S. District Judge Mark Pittman sentenced Mr. Ramirez to 14 years in federal prison; Mr. Rodney Dunn to 4.5 years in federal prison, and Mr. Robby Dunn to 2.5 years in federal prison.
According to court documents, the investigation began in June of 2023 when Hood County Sheriff’s Office Street Crimes Unit (HSCO SCU) began investigating the methamphetamine trafficking activities of the Brian Ramirez Drug Trafficking Organization (DTO).
HCSO SCU deployed numerous investigative techniques and identified a suspected drug stash location in Granbury, Texas operated by Mr. Ramirez. The investigation resulted in the seizure of approximately 1 kilogram of crystal methamphetamine, approximately 3 ounces of cocaine, and the arrests of Mr. Ramirez, Mr. Robby Dunn, and Mr. Rodney Dunn for their roles in the Ramirez DTO.
The DEA Fort Worth with the assistance of the Hood County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.
District Man Sentenced to 20 Years in Prison for Distributing Fentanyl That Killed Two PeopleRead the Press Release
WASHINGTON – Sheldon Marbley, 44, of Washington, D.C., was sentenced today to 20 years in prison on five felony counts for running a drug trafficking operation in the Southwest section of the District that caused the deaths of two people and caused serious bodily injury to another two people.
In his plea agreement, Marbley acknowledged to the Court that he caused at least 13 opioid overdoses, two of which resulted in deaths, in January 2022, near the area of First and O Streets near Nationals Park in Southwest Washington D.C.
The sentence was announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Jarod A. Forget of the Washington Division of the U.S. Drug Enforcement Administration (DEA), and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
“Fentanyl trafficking kills,” said U.S. Attorney Graves. “This defendant sold a dangerous poison that caused the deaths of two victims and the near-fatal overdoses of more than 10 others. He then knowingly continued to sell this poison to others. This 20-year sentence not only sends a message to other drug peddlers, it puts a full stop to this trafficker’s career.”
“The DEA and the Metropolitan Police Department will continue to work side by side with the United States Attorney’s Office to hold criminals like Mr. Marbley accountable for pushing dangerous poisons like fentanyl throughout our area,” said SAC Forget of the DEA. “Today’s sentence sends a clear message to criminals who have no regard for human lives in our communities.”
According to evidence presented in court, Marbley sold narcotics to L.L., 69, and G.H., 72, both of whom subsequently died from consuming the fentanyl and cocaine that Marbley provided. Marbley also admitted that he distributed narcotics to another male and female, and that they suffered serious bodily injury as a result of consuming the fentanyl and cocaine that Marbley provided.
Marbley pleaded guilty in the District of Columbia on May 23, 2023, to one count of conspiracy to distribute fentanyl and cocaine, two counts of unlawful distribution of fentanyl and cocaine resulting in serious bodily injury, and two counts of unlawful distribution of fentanyl and cocaine resulting in death.
As part of his plea agreement, Marbley acknowledged that on the morning of January 28, 2022, and in the days thereafter, Emergency Medical Service (EMS) and MPD officers responded to at least 13 fatal and non-fatal opioid overdoses located near the area of First and O Streets, SW. Marbley admitted that, on that morning, he had distributed fentanyl and cocaine from the driver’s seat of a Mazda sedan in Southwest. Closed-circuit video footage captured that morning depicts numerous individuals approaching the front driver’s side of the Mazda and appearing to engage in narcotics purchases.
Despite being aware of the mass overdose event on January 28, 2022, Marbley then went to stay at the residence of another drug user and customer, where he continued to sell narcotics until he was arrested on March 23, 2022.
In addition to the prison term, U.S. District Court Judge Christopher R. Cooper ordered Marbley to serve three years of supervised release.
This case was investigated by the DEA Washington Division and the MPD. It was prosecuted by Special Assistant U.S. Attorney Sarah J. Rasalam and Assistant U.S. Attorney David T. Henek of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia, and former Assistant U.S. Attorney Andy Wang.
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District Man Sentenced to 12 Years in Prison for Sexually Abusing Four Middle-School Aged ChildrenRead the Press Release
WASHINGTON – Luis Quevedo, 20, of Washington, D.C., was sentenced today to 12 years in prison term for sexually abusing four middle school aged girls over an eight month period, U.S. Attorney Matthew M. Graves announced.
On August 21, 2023, the defendant pleaded guilty in the Superior Court of the District of Columbia, to one count of first degree child sexual abuse and three counts of second degree child sexual abuse – one count related to each of the defendant’s four victims. The plea, which was contingent upon the Court’s approval, called for an agreed-upon prison term of seven and half to 15 years in prison. The Honorable Maribeth Raffinan accepted the plea and sentenced the defendant to a 12-year prison term. The court also ordered the defendant to register as a sex offender for the remainder of his life and to complete five years of supervised release.
According to the government’s evidence, between August 2022 and April 2023, the defendant engaged in a pattern of behavior wherein he contacted middle school aged girls—strangers to him—via social media with the intention of luring them to his house to engage in sexual intercourse. During that period of time, the defendant, who was 18 to 19 years old, had sexual intercourse with at least four such girls, each between 12 and 13 years of age.
The defendant was arrested on April 6, 2023, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves commended the work of those who investigated the case from the Metropolitan Police Department’s Youth and Family Services Division and the Federal Bureau of Investigation. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Maria Garcia-Sanchez, Forensic Interviewer Tracy Owusu, Paralegal Specialist Brenda Williams, and Assistant U.S. Attorneys Robert Platt and Sarah Roessler, who investigated and prosecuted the case.
Departments of Justice and Health and Human Services Issue Letter to State Medicaid Administrators Urging Coverage for Life-Saving Hepatitis C MedicationsRead the Press Release
The Justice Department announced today that it and the Department of Health and Human Services (HHS) issued a joint letter to state Medicaid administrators urging them to ensure, in accordance with the Americans with Disabilities Act (ADA), that their Medicaid programs allow people who have both Hepatitis C (HCV) and substance use disorder (SUD) to access life-saving HCV medications called direct-acting antivirals (DAAs).
More than two million adults in the United States have HCV, which can result in a range of serious health conditions including liver disease, liver cancer and death. However, highly effective DAA medications cure HCV in more than 95% of cases.
“Medicaid recipients with substance use disorders are entitled to the same access as others to a cure for Hepatitis C,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This letter reminds state Medicaid administrators that they have an obligation to ensure their programs are in compliance with federal civil rights law. The Justice Department stands ready to enforce the ADA in order to eliminate unnecessary barriers that stand in the way of equal access to health care.”
The letter highlights a settlement agreement between the Justice Department and Alabama’s Medicaid Agency (Alabama Medicaid) to address a policy that denied Medicaid coverage for DAAs to patients who had consumed any alcohol or illicit drugs within the six months prior to starting treatment. Alabama Medicaid’s policy meant that people with HCV and SUD, who also had evidence of recent use of alcohol and/or illicit drugs, were denied potentially life-saving medication. Following the initiation of an investigation by the department, Alabama Medicaid withdrew this policy and entered into an agreement to secure Medicaid coverage for such patients going forward.
The letter explains that both the Justice Department and HHS enforce the ADA with respect to state Medicaid programs. The ADA requires that states, in administering their Medicaid programs, provide individuals with disabilities, including SUD, equal opportunity to participate in and benefit from a state’s Medicaid program. The letter urges all state Medicaid administrators to review their current and forthcoming policies and practices, including those on HCV treatment, to determine if any changes are necessary to comply with the ADA.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TTY 833-610-1264) or visit www.ada.gov. ADA complaints may be filed online at www.civilrights.justice.gov/report.
Dark Web Vendor Sentenced to Eighteen Months in Prison for Distributing Methamphetamine-Pressed Adderall PillsRead the Press Release
SAN FRANCISCO – Tony Tan was sentenced to serve 18 months in prison for possession with intent to distribute methamphetamine in connection with his sale of counterfeit Adderall pills pressed with methamphetamine on the dark web, announced United States Attorney Ismail J. Ramsey; Drug Enforcement Administration (DEA), San Francisco Field Division, Special Agent in Charge Brian M. Clark; San Francisco Division Postal Inspector in Charge Rafael Nuñez; and IRS Criminal Investigation (IRS-CI) Oakland Field Office Acting Special Agent in Charge Michael Mosley. The sentence was handed down by the Hon. Richard Seeborg, Chief United States District Judge.
Tan, 28, of San Francisco, pleaded guilty to the charge in May 2023. According to his plea agreement, Tan admitted that he operated a dark web vendor site, Adderall123, through which he sold counterfeit Adderall pills that were laced with methamphetamine. Tan admitted the counterfeit Adderall pills were created and stamped in such a way as to mirror legitimate Adderall pills; specifically, they were orange, circular, and pressed with the letters “dp” and the number “30.” Tan sold the drugs to buyers located throughout the United States. Over the years, Tan operated Adderall123 on numerous dark web marketplaces, including Empire, ASAP, White House Market and Torrez. During this time, Tan executed thousands of sales of the counterfeit Adderall pills in various quantities.
Tan’s plea agreement contains additional details of his drug distribution operation. For example, the plea agreement describes how Tan distributed the counterfeit Adderall pills using the United States Postal Service by mailing the drugs in smell-proof bags contained within Priority Mail Flat Rate Envelopes. In addition, the plea agreement describes how Tan recruited others to assist with packaging and mailing the drugs. Further, Tan wrote fake sender names and addresses on the packages and paid postage in cash, all in hopes of thwarting law enforcement efforts to find the sender of the illicit packages. Also, Tan accepted payment for the counterfeit pills in cryptocurrency, which has privacy features that help users anonymize their transaction activity.
On November 12, 2021, federal agents seized two packages mailed by Tan that contained over 640 methamphetamine-pressed Adderall pills—approximately 11.35 grams of actual methamphetamine. On March 29, 2023, Tan was charged by Information with one count of possession with intent to distribute 5 grams and more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii). He pleaded guilty to the charge.
In addition to the prison term, Judge Seeborg ordered Tan to forfeit $17,744 in U.S. currency as well as the cryptocurrency (Ethereum, Bitcoin, and Litecoin) seized from his accounts. Judge Seeborg also ordered Tan to serve three years of supervised release, to begin after his prison term. Judge Seeborg ordered Tan to self-surrender on April 2, 2024, to begin serving his prison term.
Assistant U.S. Attorney Kristina Green is prosecuting the case, with assistance from Pat Mahoney. The prosecution is the result of an investigation by the DEA, CI, and USPIS.
Danbury Man Charged with Child Exploitation OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Danbury Police Chief Patrick Ridenhour today announced that a federal grand jury in New Haven returned an indictment yesterday charging ENRIQUE PAULO PUCHA-JIMENEZ, 33, of Danbury, with child exploitation offenses.
As alleged in the indictment, on multiple occasions between February 2020 and August 2023, Pucha-Jimenez sexually abused a girl (“the victim”) who was between the approximate ages of nine and 12. He also used his cell phone to take photographs and videos of his sexual abuse of the victim.
On August 16, 2023, Danbury Police arrested Pucha-Jimenez on state sexual assault and risk of injury offenses. He has been detained since his arrest, and his state charges are pending.
The indictment charges Pucha-Jimenez with production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and with possession of child pornography, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Danbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings with the assistance of the Office of the State’s Attorney for the Judicial District of Danbury.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Cousins sentenced to federal prison for roles in Treutlen County drug trafficking operationRead the Press Release
AUGUSTA, GA: Two cousins have been sentenced to federal prison for their roles in operating a crack cocaine distribution network in Treutlen County.
Kenyatte Harden, 39, of Soperton, Ga., was sentenced to 87 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon, and Cody Harden, 35, of Soperton, Ga., was sentenced to 48 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine, Cocaine, and Marijuana, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Dudley H. Bowen also fined Kenyatte Harden $2,500 and Cody Harden $1,500, and ordered each defendant to serve three years of supervised release upon completion of their prison terms.
There is no parole in the federal system.
“Local and federal law enforcement agencies identified and disrupted an organization that was distributing illegal drugs throughout the Soperton, Ga., area,” said U.S. Attorney Steinberg. “Our office is committed to assist communities of all sizes in shutting down criminal enterprises and keeping their citizens safe.”
As described in court documents and testimony, investigators from the Treutlen County Sheriff’s Office and the Drug Enforcement Administration began targeting the Hardens’ drug trafficking operation in early 2021, culminating in the arrests and indictments of both men and their 14 co-conspirators in October 2022. These cases have now been fully adjudicated with the Hardens’ sentencings.
The case was investigated by the Drug Enforcement Administration and the Treutlen County Sheriff’s Office, with assistance from the Jeff Davis County Sheriff’s Office and other agencies, and prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys John P. Harper III and L. Alexander Hamner.
Corpus man on supervision for firearms charge imprisoned for drug stash found at homeRead the Press Release
CORPUS CHRISTI, Texas – A 36-year-old man has been sentenced for possession with intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.
Phil Cuellar III aka Tex pleaded guilty Aug. 7, 2023.
U.S. District Judge David S. Morales has now sentenced him to 168 months in federal prison to be followed by five years of supervised release. Cuellar had been on supervised release for a previous felon in possession of a firearm charge at the time of his drug arrest. As such, the court ordered him to serve an additional 20 months in federal prison, 10 months to be served concurrently and 10 months to be served consecutively for a total 178-month-term of imprisonment.
During the hearing, the court heard additional evidence regarding Cuellar’s criminal history including Cuellar’s gang membership in Tango Blast, two prior felony drug possession convictions involving intent to deliver, evading arrest in a vehicle and felon in possession of a firearm.
The investigation began after Cuellar attempted to sell narcotics after reaching out to someone on social media.
On May 24, 2023, law enforcement executed a search warrant on Cuellar’s residence. During the search, they found 389 grams of meth, over 27 grams of heroin, cocaine, marijuana, THC cartridges, almost $20,000 in cash and a loaded firearm that had been reported stolen.
Cuellar will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Corpus Christi Police Department’s Gang Unit and Homeland Security Investigations. Assistant U.S. Attorneys Barbara J. De Pena and Brittany Jensen prosecuted the case.
Corinna Counselor Ordered to Pay MaineCare $13,087.62 for Submitting Bogus Treatment RecordsRead the Press Release
BANGOR, Maine: A Corinna woman was sentenced in U.S. District Court in Bangor today for false statements involving a health care benefit program.
U.S. District Judge John A Woodcock, Jr. ordered April McKinney, known professionally as April Taylor, 47, to pay $13,087.62 in restitution to the Maine Department of Health & Human Services (ME/DHHS). ME/DHHS administers the MaineCare program. McKinney was also sentenced to three years of probation and fined $2,500. She pleaded guilty on August 15, 2023.
According to court records, between April and December 2020, McKinney falsified appointment details and session notes in therapy service records. She used the falsified records to bill and receive funds from MaineCare. MaineCare is funded primarily by the federal government, which pays approximately two-thirds of all reimbursed claims. McKinney’s submission of falsified information led to the misuse of taxpayer dollars through reimbursements higher than warranted by any actual patient care given. She surrendered her counseling license on January 22, 2024, through a consent agreement.
The FBI investigated the case.
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Convicted Felon Charged with Possession of Ammunition in Connection with Broad Daylight Shooting in BrooklynRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, an indictment was unsealed charging Luis Rosario with being a felon in possession of ammunition relating to a December 3, 2023 shooting in the Red Hook section of Brooklyn. Rosario was arrested this morning and will be arraigned this afternoon before United States Magistrate Judge Peggy Kuo.
Breon Peace, United States Attorney for the Eastern District of New York; Tommy Kalogiros, Assistant Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF); and Edward A. Caban, Commissioner, New York City Police Department (NYPD) announced the arrest and indictment.
“As alleged, Rosario is a convicted felon who shot and injured a man in broad daylight on a Brooklyn sidewalk without regard for the victim or passersby who were in the line of fire,” said United States Attorney Peace. “Today’s arrest and indictment demonstrates the important work that this Office and our law enforcement partners are doing to reduce gun violence in our communities.”
“With today’s indictment, the NYPD continues its tireless efforts to rid our communities of gun violence,” stated NYPD Commissioner Caban. “I thank all of our law enforcement partners for their dedication to this critical aspect of our public safety mission.”
“The callous disregard for life will not be tolerated under any circumstance. This indictment demonstrates the commitment of law enforcement and prosecutors working together at all levels. ATF NY is laser-focused on targeting the most significant drivers of violent crime in our communities. I commend the work of ATF NY’s Joint Firearms Task Force, NYPD’s Brooklyn South Violent Crime Squad, NYPD’s 76th Precinct, Drug Enforcement Administration, U.S. Marshals Service, the U.S. Secret Service And the United States Attorney’s Office for the Eastern District of New York . We are dedicated to protecting the public and holding trigger pullers accountable for their actions,” stated ATF Assistant Special Agent-in-Charge Kalogiros.
As alleged in the indictment and other court filings, on December 3, 2023, Rosario fired multiple shots from close range at three men standing on the sidewalk outside of a supermarket and restaurant located across the street from a housing development in Red Hook. Surveillance video footage shows Rosario pulling a gun from his jacket and opening fire while passersby were walking along the sidewalk. Rosario shot one man in the leg, causing him to collapse. As the wounded victim lay on the sidewalk, Rosario got into a car and drove it directly toward the victim, running over his foot.
Rosario has a prior felony conviction. On June 20, 2016, he was convicted in Bronx County Supreme Court of knowingly making or possessing dangerous contraband in prison in the first degree.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Rosario faces up to 15 years in prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorney’s Offices work in partnership with federal, state, local, and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime. The U.S. Attorney’s Office for the Eastern District of New York is currently partnering with the SCPD, the NYPD, the Federal Bureau of Investigation (FBI), ATF, the U.S. Department of Homeland Security, Homeland Security Investigations (DHS/HSI), and the Drug Enforcement Administration (DEA) in its PSN mission.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Andrew M. Roddin and James R. Simmons are in charge of the prosecution.
The Defendant:
LUIS ROSARIO
Age: 30
Cliffside Park, New JerseyE.D.N.Y. Docket No. 24-CR-20 (RER)
Columbia Physician Indicted for False Statements to MedicareRead the Press Release
KANSAS CITY, Mo. – A Columbia, Mo., physician has been indicted by a federal grand jury for making false statements relating to Medicare orders.
Jerry Joseph Bruggeman, M.D., 52, was charged in a 13-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, Jan. 23.
The federal indictment alleges that Bruggeman, a licensed physician, provided false statements regarding Medicare beneficiaries who received medical devices (such as braces) or genetic testing. The federal indictment charges Bruggeman with 13 counts of making false statements relating to health care matters. The indictment also contains a forfeiture allegation, which would require Bruggeman to forfeit to the government $29,440, which represents his proceeds from the alleged offenses.
According to the indictment, Bruggeman contracted with a telemedicine company in Boca Raton, Florida, which maintained an online portal that aggregated the personal information of Medicare beneficiaries who had been solicited by marketing companies. The company created medical assessments and orders for these beneficiaries, then hired medical professionals like Bruggeman to “review” and sign orders for cancer genetic testing, pharmacogenetic testing, and durable medical equipment.
The federal indictment alleges that Bruggeman approved orders for medical devices for eight Medicare beneficiaries in March and April 2019. Bruggeman stated that he ordered the devices in each case based on his evaluation of the patient’s condition and determined that the device was “medically necessary and appropriate.” Bruggeman electronically signed a physician verification for each of the devices, indicating “by my signature, I am prescribing the items listed above and certify that the above-prescribed item(s) is medically indicated and necessary and consistent with current accepted standards of medical practice and treatment of this patient’s physical condition.”
In fact, the indictment says, Bruggeman never evaluated or assessed the patient’s condition, never determined whether the device was medically necessary and appropriate for the patient, and never determined whether the listed device was consistent with current accepted standards of medical practice and treatment of the patient’s physical condition.
The federal indictment also alleges that Bruggeman approved orders for genetic testing for five Medicare beneficiaries between January and March 2019. Bruggeman asserted in each case that the test results were necessary to the patient’s medical management. He electronically signed an accompanying letter of medical necessity that stated he would “receive the test results in order to pursue care for the patient.” In fact, the indictment says, Bruggeman never treated the patients.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by Health and Human Services, Office of Inspector General.
Chicago Man Sentenced to Federal Prison for Methamphetamine Distribution ChargeRead the Press Release
DAVENPORT, Iowa – A Chicago, Illinois, man was sentenced on Monday, January 22, 2024, to 120 months in federal prison for distribution of methamphetamine.
According to public court documents at the time of his plea hearing, Joshua Adam Townsen, 42, admitted to the October 2022 distribution of a bag that contained approximately 220 grams of methamphetamine to Gilbert Ellis. On October 10, 2023, Gilbert Ellis was sentenced to 240 months’ imprisonment on conspiracy to distribute methamphetamine and heroin, distribution of heroin near a school, distribution of heroin, and distribution of methamphetamine. Additional information on this drug conspiracy can be found in a previously published press release: https://www.justice.gov/usao-sdia/pr/eight-burlington-individuals-charged-federal-criminal-complaint-drug-charges
After completing his term of imprisonment, Townsen will be required to serve five years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Federal Bureau of Investigation, the Southeast Iowa Narcotics Taskforce, the Drug Enforcement Administration, the Burlington Police Department, the Des Moines County Sheriff’s Office, the West Burlington Police Department, the Henry County Sheriff’s Office, Iowa State Patrol, Iowa Division of Narcotics Enforcement, Lee County Task Force, Muscatine Task Force, Quad City Metropolitan Enforcement Group, Johnson County Drug Task Force, Ottumwa Drug Task Force, and the Tri-County Drug Enforcement Team in Illinois.
Chicago Man Indicted for Possessing an Illegal MachinegunRead the Press Release
Earlier today, a federal grand jury in Brooklyn returned a two-count indictment charging Isaiah Dukes, also known as “Lil Zay Osama,” with possession of a machinegun and possession of an unregistered firearm. Dukes is presently in state custody in Illinois on unrelated charges and will be arraigned in federal court in Brooklyn at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, Tommy Kalogiros, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Office (ATF), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the indictment.
“As alleged, Dukes brought a machinegun into our District, and then dangerously left it in the back of a rideshare,” stated United States Attorney Peace. “This Office, together with our law enforcement partners, will continue to work diligently to protect our communities from such dangerous weapons.”
“Machineguns have been highly regulated in the United States since the 1930s and have been banned since 1986. Machineguns have no place on the streets of our communities. They are weapons intended to kill and injure with maximum effect, with the shooter often firing uncontrollably and indiscriminately. They pose a significant danger to both the public and law enforcement. Today’s indictment serves as an important reminder that machinegun conversion devices, such as switches, violate federal law, and that possession will not be tolerated. The men and women of ATF will continue to work with our partners to reduce the proliferation of these devices on our streets. Thanks to ATF NY’s Joint Firearms Task Force, ATF Chicago, NYPD & EDNY,” stated ATF Assistant Special Agent-in-Charge Kalogiros.
“Today’s indictment is a stark reminder that loaded, illegal firearms – sometimes modified to maximize their deadly potential, as alleged in this case – continue to be brought into and carried throughout New York City,” stated NYPD Commissioner Caban. “Let me be clear: This behavior will not be tolerated here, and the NYPD vows to keep our streets safe from guns and anyone who unlawfully possesses them. I commend and thank the rideshare driver who observed this weapon for doing what we always ask of all New Yorkers: He saw something and he said something, and he possibly saved lives in the process.”
As alleged in public filings, on September 29, 2022, Dukes carried a loaded Glock pistol affixed with a switch — a device that when attached to the back of a handgun like a Glock converts the firearm into a fully automatic weapon. Law enforcement subsequently determined that the firearm can automatically fire more than one round with a single function of the trigger, rendering it a machinegun. Dukes was arrested after leaving the firearm in a rideshare vehicle that brought him from a luxury hotel in Manhattan to a recording studio in Queens.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of all counts, the defendant faces a maximum of 20 years’ imprisonment.
Assistant United States Attorneys Gilbert M. Rein and Rebecca M. Schuman are in charge of the prosecution with assistance from Paralegal Specialist Rachel Friedman.
The Defendant:
ISAIAH DUKES
Age: 26
Calumet City, IllinoisE.D.N.Y. Docket No. 24-CR-28 (NRM)
Charlottesville Man Arrested for Operating East Coast Prostitution RingRead the Press Release
CHARLOTTESVILLE, Va. – A Charlottesville, Virginia man, who posted hundreds of commercial sex ads for adult women in various cities in Virginia, North Carolina, South Carolina, Maryland, and Pennsylvania, was arrested early this morning for violating the Mann Act, a federal law that criminalizes the transportation of any woman or girl for the purpose of prostitution.
Brian Lamont Turner, 42, was arrested this morning at a home in Charlottesville following a hours-long standoff with police on a federal criminal complaint charging him with one count of violating the Mann Act.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division announced the arrest.
According to court documents, in February 2023, the Federal Bureau of Investigation received multiple reports from local law enforcement agencies identifying Turner and adult females suspected of engaging in commercial sex acts.
The FBI’s investigation revealed an account on the commercial sex website SkiptheGames.com registered to an email address known to be used by Turner. The account posted hundreds of commercial sex advertisements in various states, including Virginia, North Carolina, South Carolina, Maryland, and Pennsylvania.
According to court documents, one of Turner’s most recent listings was posted on January 17, 2024, advertising commercial sex in Charlottesville.
Turner controlled all or almost all aspects of arranging commercial sex dates. He created the advertisements, communicated with customers, and scheduled the dates. Text messages show him providing instructions and information to his victims about dates, such as how long the date was scheduled to last and how much money to charge. Turner also transported the adult victims to and from the hotels and often stayed in the hotel parking lot or another hotel room while the victims saw commercial sex customers.
Turner specifically targeted female victims who had drug addictions, recruited them, and used their drug addictions to control them. Turner became the women’s main source of drug supply and threatened to withhold drugs from his victims if they did not complete their commercial sex dates or follow his directions.
In addition, Turner is known to possess a firearm and has used it to compel his victims to follow his instructions.
The FBI is investigating the case. The Charlottesville City Police Department and the Albemarle County Police Department assisted with Turner’s arrest.
Assistant U.S. Attorney Melanie Smith is prosecuting the case.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Casper man and Greeley woman arraigned on drug trafficking chargesRead the Press Release
Dusty Ronald Harris, age 42, of Casper, Wyoming, and Thelma Faber, age 44, of Greeley, Colorado, were arraigned on Jan. 19. Each defendant was charged with possession with intent to distribute methamphetamine and fentanyl, aiding and abetting, and conspiracy to possess with intent to distribute methamphetamine and fentanyl. Trial has been set for Mar. 25 before Chief U.S. District Court Judge Scott W. Skavdahl in Casper.
Harris and Faber were each detained at the request of the government and remanded to the custody of the U.S. Marshals. If convicted on all charges, each defendant could be sentenced to a maximum of 40 years’ imprisonment with no less than three years of supervised release and up to a $2 million fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the FBI, Wyoming Division of Criminal Investigation and the Fremont County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Timothy W. Gist.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 24-CR-20
Cary Man Sentenced to Prison in Ponzi SchemeRead the Press Release
RALEIGH, N.C. – Kumar Arun Neppalli, 57, was sentenced to 44 months in the Federal Bureau of Prison and ordered to pay almost $1 million in restitution to victims in connection with a Ponzi investment fraud scam. Neppalli previously pleaded to guilty to 17 counts of Wire Fraud.
The investigation revealed Neppalli relied on his good standing within the Indian American community in Cary to defraud numerous victims under the false pretense that he would invest their money in a legitimate real estate development in the Orange County area. Neppalli leveraged his employment with the town of Chapel Hill to convince the victims that he had insider knowledge of development plans with respect to the purported real estate. Neppalli would request a specific amount of money within a short timeframe, sometimes the same day, to facilitate closing the transaction. Neppalli promised a return of the principal investment plus a profit within a few months, often asking his victims not to discuss the transaction with other members of the community or referencing a non-disclosure agreement. Neppalli used the funds from these victims to pay back earlier investors who believed that he was returning their original investment and legitimate capital gains.
“Neppalli was a conman running a classic ‘affinity fraud,’ targeting Indian American investors in the Triangle for their hard-earned savings,” said U.S. Attorney Michael Easley. “It was a pure Ponzi scheme – stoking false hopes of financial success, but using new investor money to pay off earlier investors, while masquerading those payments as legitimate profits. Investors should beware affinity fraudsters like Neppalli promising outsized returns on short timelines while exploiting membership in a particular religious or ethnic group to gain credibility and target victims.”
“Neppalli swindled members of his own tight-knit community. He pretended to have inside information to make them rich, instead many victims lost their entire life savings. While fraud of this magnitude can have a lasting impact, we hope the time Neppalli must serve in federal prison brings a sense of justice to his victims," said Robert M. DeWitt, the FBI Special Agent in Charge in North Carolina.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle announced the sentence.
The Federal Bureau of Investigation’s Triangle Fraud Taskforce led the investigation, and Assistant U.S. Attorney David G. Beraka is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00347-BO.
Burlington Man Sentenced to 25 Years in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
DAVENPORT, Iowa – A Burlington man was sentenced on January 23, 2024, to 25 years in federal prison for Conspiracy to Distribute 50 grams or more of Methamphetamine.
According to public court documents and evidence presented at sentencing, Larry Keith Knotts, III, 36, conspired to distribute over 65 kilograms of Methamphetamine. As a part of the conspiracy, Knotts possessed a dangerous weapon and attempted to influence a witness.
After completing his term of imprisonment, Knotts will be required to serve five years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Southeast Iowa Narcotics Taskforce, Burlington Police Department, Des Moines County Sheriff’s Office, West Burlington Police Department, Henry County Sheriff’s Office, Iowa Division of Narcotics Enforcement, and the Federal Bureau of Investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
British Investor and Billionaire Businessman Joseph Lewis Pleads Guilty to Insider Trading SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of JOSEPH LEWIS to charges of committing securities fraud and conspiring to commit securities fraud through insider trading. LEWIS was arrested in July 2023 and pled guilty before U.S. District Judge Jessica G.L. Clarke today. In addition, BROAD BAY LTD., a corporate entity owned and directed by LEWIS, pled guilty today before Judge Clarke to a superseding criminal information, regarding its participation in a securities fraud scheme to hide LEWIS’s ownership shares of a pharmaceutical company through a pattern of false filings and misleading statements. In connection with this plea, BROAD BAY LTD. has agreed to pay $50 million in financial penalties, among other penalties, and to continue to cooperate with the Government in this investigation.
U.S. Attorney Damian Williams said: “Today’s guilty pleas once again confirm — as I said in announcing the charges against Joseph Lewis just six months ago – the law applies to everyone, no matter who you are or how much wealth you have. Billionaire Lewis abused inside information he gained through his access to corporate boardrooms to tip off his friends, employees, and romantic interests. Now, he will pay the price with a federal conviction, the prospect of time in prison, and the largest financial penalty for insider trading in a decade. His company, Broad Bay Ltd., who failed to detect and report this misconduct, has also been held to account and will plead guilty and pay more than $50 million in financial penalties.”
According to the allegations contained in the Indictments, Superseding Information, and other filings and statements made in court:
JOSEPH LEWIS is a billionaire businessman and investor who is the principal owner of the Tavistock Group, an international private investment organization. By virtue of LEWIS’s investments in certain companies, he has controlled one or more board of director seats at those companies and has deputized employees to serve on various company boards. In turn, through these employees, LEWIS received material, non-public information about these companies. LEWIS, on multiple occasions over the course of several years, misused and misappropriated this confidential information to provide stock tips to various individuals in his life, including his employees, romantic partners, and friends, as a way to provide them with compensation and gifts. These individuals, in turn, traded on the tips provided by LEWIS for vast personal gain.
In addition, BROAD BAY LTD. and other corporate entities under the direction and control of LEWIS engaged in a scheme to hide LEWIS’s ownership and control shares of a pharmaceutical company through a pattern of false filings and misleading statements. LEWIS and his companies were required to file schedules of share ownership with the Securities and Exchange Commission (the “SEC”) because he was an owner of more than 10% of the stock of Mirati Therapeutics (“Mirati”). LEWIS and entities under his control reported to the SEC that he owned between 16 and 19.99% of the stock, when, in reality, he beneficially owned and controlled more than 19.99% of Mirati stock through offshore shell companies and other entities. As a result of the false disclosure of his ownership, corporate entities under the direction and control of LEWIS were able to exercise warrants in Mirati that they would otherwise not have been able to exercise, at vast financial gain. LEWIS and certain entities under his control falsely swore on SEC filings to incorrect Mirati share ownership totals on at least 13 separate occasions between in or about November 2013 and in or about November 2017. In or about 2018, the Mirati shares held in offshore entities were sold, and then approximately $25 million in proceeds was transferred to an account controlled by BROAD BAY LTD.
As part of the guilty plea of BROAD BAY LTD., LEWIS and BROAD BAY LTD. have agreed LEWIS and his companies will resign and relinquish their control over board of director seats and participation in board of director meetings of any corporation publicly traded in the United States, will cease ownership of certain investments over the five year period of probation, will cooperate with the Government’s ongoing investigation and prosecution, and will pay $50 million in financial penalties, including a $15,586,021 fine and $34,413,979 in forfeiture.
* * *
LEWIS, 86, a British national, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum potential sentence of five years in prison, and two counts of securities fraud, which each carry a maximum potential sentence of 20 years in prison.
BROAD BAY LTD. pled guilty to one count of securities fraud, which carries a maximum sentence of five years’ probation.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. He also expressed appreciation for the SEC, which previously initiated civil proceedings against LEWIS.
This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Nicolas Roos and Jason A. Richman are in charge of the prosecution.
Boston Man Who Trafficked a Minor Victim in Three States Pleads GuiltyRead the Press Release
BOSTON – A Boston man pleaded guilty today to transporting a minor to New York and Connecticut to engage in commercial sex.
Leon Blount III, 31, pleaded guilty to three counts of transportation of minor with intent to engage in criminal sexual activity. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for April 24, 2024. Blount was indicted by a federal grand jury in January 2023. He has been in custody since September 2022.
“Human trafficking is not just a crime; it is a profound violation of human dignity. The unimaginable harm inflicted upon victims is happening too frequently in our communities,” said Acting United States Attorney Joshua S. Levy. “Our dedicated Human Trafficking & Civil Rights Unit remains committed to bringing traffickers to justice, providing unwavering support to survivors, and relentlessly pursuing those who exploit the most vulnerable.”
“Blount admitted today that he sought out and took advantage of a vulnerable young woman and limited her freedom. This is a pattern we see again and again with human traffickers. Today’s plea brings us another step closer to justice for those he victimized,” said Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England.”
Between July and August 2022, Blount transported a 17-year-old victim, Jane Doe 2, from Massachusetts to New York and Connecticut to engage in commercial sex for his financial benefit. Blount met Jane Doe 2 while she was living at a Massachusetts group home for transitional age adolescents. He gave her alcohol and marijuana and recruited Jane Doe 2 to travel out-of-state to engage in commercial sex. While in New York, Blount directed Jane Doe 2 to solicit sex buyers in an area of Brooklyn that is known for commercial sex. Throughout this period, Blount stayed in close contact with Jane Doe 2, using text messages to ensure that she continued to perform sex acts when he was not physically present. To attract more sex buyers, Blount caused Jane Doe 2’s photo to be posted on websites that advertises commercial sex. He then put Jane Doe 2 in hotel rooms in Woburn, Mass. and Hartford, Conn. where he directed her to perform sex acts with buyers to earn more money.
The charge of transportation of a minor with intent to engage in criminal sexual activity provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact [email protected].
Acting U.S. Attorney Levy and HSI SAC Krol made the announcement today. Assistant U.S. Attorney Brian A. Fogerty of the Civil Rights & Human Trafficking Unit is prosecuting the case.
Billings bank robbery sends Lame Deer man to prison for more than five yearsRead the Press Release
BILLINGS — A Lame Deer man who admitted to robbing a Billing bank while armed with a knife and attempting to flee on a city bus was sentenced today to five years and three months in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Elmer Brady, 68, pleaded guilty in August 2023 to bank robbery.
U.S. District Judge Susan P. Watters presided.
The government alleged that on March 23, Brady entered Stockman Bank in downtown Billings, approached a teller and told her, “I already took care of your security guard.” Brady then wrote on a deposit slip, “This is a …” with the last word being unreadable. Brady slid the note to the teller and demanded $9,000 or else he would kill her. The teller told law enforcement that Brady said he was armed with a weapon and would use it if she didn’t give him the money. Fearing that Brady was going to kill her and others in the bank, the teller gave Brady all the money in her cash drawer, and he left the bank. Brady attempted to leave the area on a City of Billings bus, but a bank guard alerted the bus driver, who ordered Brady to get off. Brady complied and police officers arrested him a short time later as he was walking toward the Billings Public Library. In a search of Brady, officers found a large knife in his jacket pocket and determined he was on state probation. Law enforcement searched Brady’s bag and recovered $6,361 in U.S. currency, a pair of binoculars, rubber gloves and a metal pipe.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case. The FBI and Billings Police Department conducted the investigation.
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Arapahoe man sentenced for assault resulting in serious bodily injury and theft from an Indian organizationRead the Press Release
Logan Savage, 43, of Arapahoe, Wyoming, was sentenced to 36 months in prison for assault resulting in serious bodily injury and, in a separate crime, 24 months in prison for theft from an Indian organization. These sentences will be served concurrently. The defendant was also ordered to pay $81,922.37 in restitution. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Jan. 23.
Savage pled guilty to the assault crime in Oct. 2023. According to court documents, Savage admitted to entering the residence of the victim on Feb. 11, 2023, and then beating and kicking the victim and hitting the victim with a pistol.
Savage pled guilty to the theft of an Indian organization charge in Nov. 2023. According to court documents, the defendant was employed as the Finance Director of Wind River Family and Community Healthcare (WRFCH) in Riverton from July 2022 through May 2023. WRFCH issued the defendant a credit card to use for business expenses. Company policy explicitly prohibited using the credit card for personal expenses. From about Oct. 1, 2022, through Mar. 31, 2023, Savage willfully misused the company credit card to make personal purchases including firearms, furniture, and groceries.
The assault case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Michael J. Elmore. The theft case was investigated by the Department of Health and Human Services, Office of the Inspector General, and prosecuted by Assistant U.S. Attorney Michael J. Elmore and Assistant U.S. Attorney Cameron J. Cook.
Case No. 23-CR-00034 (Assault) and Case No. 23-CR-00139 (Theft)
Alexandria Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
CONCORD – An Alexandria man was sentenced in federal court in Concord for failing to register as a sex offender, U.S. Attorney Jane E. Young announces.
Rex Jason Sumner, 53, was sentenced by U.S. District Court Judge Landya McCafferty to 12 months and 1 day in prison and 5 years of supervised release.
“Prosecuting violations of the Sex Offender Registration and Notification Act is critical in our effort to keep the most vulnerable members of our community safe,” U.S. Attorney Jane E. Young said. “Today’s sentence reinforces this Office’s dedication to protecting the public and ensuring accountability for those who attempt to circumvent their registration requirements.”
“If not for the valuable assistance and resources dedicated to overseeing the deceptive movements of registered sex offenders throughout the country and abroad, offenders such as Mr. Sumner would unknowingly lay dormant in our communities,” proclaimed Deputy U.S. Marshal Andrew Grillo. “This case highlights the efforts of local, state and federal law enforcement networks efficiently coming together to resolve an important matter central to public safety.”
“The Alexandria Police Department was glad to be part of this investigation. Sumner is a potentially dangerous individual who thought that he could come and hide in a small town in New Hampshire,” said Chief David Suckling of the Alexandria Police Department. “This was a great collaboration between many agencies, and we were proud to do our share.”
According to Court documents and statements made in Court, Sumner is a Tier III sex offender with a duty to register for life. Sumner was released from prison in Oklahoma in 2018 and had been registering with Oklahoma authorities at an address in Oklahoma despite residing in New Hampshire since early 2023. Sumner would return to Oklahoma periodically to update his registration and continued to represent to authorities that he still resided in Oklahoma.
The United States Marshals Service led the investigation. Valuable assistance was provided by the Alexandria (NH) Police Department, the Plymouth (NH) Police Department, the New Hampshire State Police, and the Garvin County (OK) Sherriff’s Office. Assistant U.S. Attorney Kasey Weiland is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
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Alaska charter company pays $900,000 in Klutina River Fire settlementRead the Press Release
ANCHORAGE, Alaska – Groves Salmon Charters LLC, a fishing guide service in Copper Center, Alaska, paid $900,000 to resolve a lawsuit brought by the U.S. alleging the company negligently ignited the Klutina River Fire in 2019.
The settlement requires Groves Salmon Charters LLC and a fishing guide employed by Groves to pay for damages incurred during the Klutina River Fire.
The wildfire ignited on July 8, 2019, after Groves’ guide started a campfire at or around mile 17 of the Klutina River. Later that evening, an individual reported a large forest fire in the area along the Klutina River. The fire ultimately burned 176 acres of land before it was extinguished by state authorities.
Wildfire investigators determined Groves’ guide started a campfire at or near mile 17 of the Klutina River despite being aware of high fire danger. Investigators determined Groves’ guide caused the Klutina River Fire when he failed to properly extinguish the campfire.
The State of Alaska Department of Natural Resources, Division of Forestry and Fire Protection undertook fire suppression efforts. The U.S. Department of Interior BLM, Alaska Fire Service was fiscally responsible for all the fire suppression costs. A multi-agency team of fire investigators from the U.S. Forest Service, Alaska Division of Forestry and Fire Protection, and BLM conducted the investigation.
“My office wants to recognize the tireless work the State of Alaska put forward to suppress this fire, the work of the U.S. Forest Service investigators to pinpoint the cause of the fire, and the BLM Office of Law Enforcement and Security and the Alaska Fire Service who worked to complete the investigation. This settlement represents the final step in the government’s effort to ensure justice was served in this case,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “As we experience longer fire seasons and more extreme fire behavior, we will hold anyone who ignites wildland fires accountable for the costs of fires they cause on Alaskan lands. We will take all measures to protect and conserve public lands for the use and enjoyment of all.”
“Escaped campfires like this one are at the top of the list for human-caused wildfires on BLM-managed public lands in Alaska,” said BLM Alaska Prevention and Mitigation Program Lead Casey Boespflug. “These fires are often a result of a campfire or warming fire not being fully extinguished or not being built on bare ground or rock. Using a burn pan or fire barrier reduces the likelihood of a fire escaping if built on organic materials, even in wet or cold conditions.”
Assistant U.S. Attorneys Jackie Traini and Glenn Shidner, with the help and support of the Department of the Interior Office of the Solicitor, litigated the case.
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8 People Arrested in Moses Lake on Federal Drug Trafficking Charges and Violent OffensesRead the Press Release
Moses Lake, Washington, - Today, United State Attorney Vanessa Waldref, announced the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service (USMS), Moses Lake Police Department (MLPD), Border Patrol, and the Washington Department of Corrections arrested eight individuals charged with various federal drug trafficking and violent offenses.
Among those arrested:
• Solomon Valle-Chavarria, Pedro Valley-Chavarria, Jose Mauricio Rodriguez-Sanchez and Paulino Portillo-Orozco were arrested on a 7-count indictment stemming from their methamphetamine distribution activities and unlawful firearm possession, to include a firearm believed to be utilized in a murder that occurred in November 2023 in Montlake Park.
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• Troy S. McLanahan’s residence was searched on January 23, 2024, pursuant to a federal search warrant related to his distribution of drugs out of said residence. During the execution of the search warrant, ATF and MLPD recovered approximately 35 guns, which included assault rifles, short-barreled shotguns, short-barreled rifles, as well as high-capacity shotgun banana clips, 3 silencers and more than 1 pound of methamphetamine (pictures below). McLanahan was subsequently charged by criminal complaint.
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• Rebecca A. Jimenez was arrested for her role in an incident on January 21, 2022, where a vehicle was set on fire in the Moses Lake Motel 6 parking lot over a drug debt. Her two co-defendants, Tyler Wallo and David Maybee are currently in state prison serving sentences for unrelated convictions and will have their appearance in federal court on these charges next month.
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• Cameron Ross was arrested for distribution, attempted distribution, and conspiracy to distribute large quantity of fentanyl pills into the Moses Lake community.
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• Nicholas E. Essex was arrested for distribution of methamphetamine into the Moses Lake community. When he was arrested, he was on pre-trial release for state charges of Possession of Depictions of Minors Engaged in Sexually Explicit Conduct.
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“During the arrests in these cases, illegal drugs and a large number of firearms were taken off our streets, demonstrating the significant impact that is felt when federal, state and local law enforcement work together,” said U.S. Attorney Waldref. “We will continue our collaborative, focused efforts to combat violent crime issues and make our communities safer and stronger.”
These cases are being prosecuted by Assistant United States Attorney Caitlin Baunsgard.
An indictment and a complaint are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
23 January 2024
Woman and Her Two Daughters Convicted in Child Labor Trafficking Conspiracy in Chicago SuburbsRead the Press Release
CHICAGO — A federal jury today convicted a woman and her two daughters on child labor trafficking charges for forcing two undocumented West African children to work in the Chicago suburbs.
NAWOMI AWOGA, 75, of Hazel Crest, Ill., and her two daughters, MARINA OKE, also known as Marina Fandohan, 38, of Country Club Hills, Ill., and ASSIBA LEA FANDOHAN, 35, of Hazel Crest, Ill., were each found guilty of one count of conspiracy to conceal, harbor, and shield from detection two children from the West African country of Benin, one count of concealment of an undocumented immigrant, and one count of forcing labor through threats of serious harm to a victim or another person.
The jury returned its verdicts this afternoon after a two-week trial in U.S. District Court in Chicago. U.S. District Judge John Robert Blakey did not immediately set sentencing dates.
According to evidence presented at trial, Awoga coached the victims, then age 14 and 12, in Benin to lie to U.S. immigration authorities about their family relationships in order to obtain tourist visas, and then accompanied them into the United States. Once in the U.S., the defendants harbored the victims in residences in the Chicago suburbs of Country Club Hills and Hazel Crest while the victims were forced to provide labor and services for the defendants’ financial gain. The defendants used violence against the victims to force them to work both inside the residences and at a hair salon.
The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and Mark Woods-Hawkins, Special Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service (DSS). Substantial assistance in the investigation was provided by the Cook County Sheriff’s Office, Chicago Police Department, Department of Homeland Security’s Center for Countering Human Trafficking, and the Regional Security Office at the U.S. Embassy in Cotonou, Benin. The government is represented by Assistant U.S. Attorneys Barry Jonas and Tiffany Ardam, and Special Assistant U.S. Attorney Kristin M. Linsley.
Anyone with information about a potential human trafficking situation or a person who may be experiencing human trafficking should contact the National Human Trafficking Hotline by calling 1-888-373-7888 or texting 233733. More information about the Justice Department’s work to combat human trafficking can be found here.
Woman Sentenced for Gambling Away Pandemic and Economic Crisis LoanRead the Press Release
TULSA, Okla. – A woman was sentenced today to 18 months and for wire fraud, announced U.S. Attorney Clint Johnson. U.S. District Judge Terence, C. Kern, sentenced Carmen Leann Oliver, 34. Judge Kern further ordered Oliver to 5 years of supervised release and to pay $170,832 in restitution.
According to court documents, from August 2020 through July 2021, Oliver engaged in a scheme to defraud the Small Business Administration by obtaining an Economic Injury Disaster Loan she was not entitled to. She lied on her application and received proceeds meant for the business applicant’s operating expenses. Oliver met the application requirements by claiming she had five employees and revenue prior to January 2020. Once the loan was approved and deposited into her account, Oliver misappropriated funds for personal use including gambling at various casinos.
Oliver was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility.
The Office of Inspector General for the Board of Governors of the Federal Reserve System investigated the case. Assistant U.S. Attorney Thomas E. Buscemi prosecuted the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the Paycheck Protection Program (PPP). Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/opa/pr/justice-department-takes-action-against-covid-19-fraud
Webster Man Sentenced to Prison for Embezzling Funds from St. Croix Chippewa Indians of WisconsinRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Duane Emery, 65, Webster, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to one year and one day in federal prison for wire fraud. Emery pleaded guilty to this charge on October 17, 2023.
Between 2015 and 2019, Emery stole over $150,000 from the St. Croix Chippewa Housing Authority, an agency of the St. Croix Chippewa Indians of Wisconsin. This agency is responsible for providing and maintaining housing for low-income tribal members. The Housing Authority receives more than $1 million each year in grant funding from the U.S. Department of Housing and Urban Development. Emery served as the director for the Housing Authority from 2011 until his termination in 2019.
Emery used his position to obtain checks drawn on Housing Authority funds under the pretense that the checks were needed to make payments on a credit card maintained by the Housing Authority. Emery would instead apply the checks to his personal credit card. Emery also obtained checks drawn on Housing Authority funds to make payments on a timeshare property in Florida, and to pay for service on his personal vehicles.
At sentencing, Judge Conley stated that Emery’s sustained criminal embezzlement warranted a period of imprisonment. Judge Conley also took into consideration the length of time Emery stole form the tribe, and the fact that his lack of supervision allowed other employees to steal.
The charge against Emery was the result of an investigation conducted by the U.S. Department of Housing and Urban Development’s Office of Inspector General. Assistant U.S. Attorney Taylor L. Kraus prosecuted this case.
Washington, D.C. Man Arraigned on Charge of Possessing Stolen Government VehicleRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont announced that Andrew Chaves, 24, of Washington, D.C., was arraigned yesterday in the United States District Court for the District of Vermont. A federal grand jury sitting in Burlington, Vermont returned a one-count indictment on January 18, 2024, alleging that Chaves retained and concealed a stolen U.S. Forest Service vehicle. United States Magistrate Judge Kevin J. Doyle ordered Chaves detained pending trial.
According to court records, shortly after December 27, 2023, personnel at the U.S. Forest Service facility in Manchester, Vermont noticed a missing vehicle. GPS data enabled authorities to track the vehicle, a 2018 Jeep Compass, to an abandoned Vermont National Guard facility in Waterbury, Vermont. At that location investigators recovered the vehicle , a pill bottle bearing Chaves’s name, a number of federal and state government license plates, and numerous receipts. When authorities recovered the Jeep, it bore U.S. government license plates assigned to a 2018 Ford owned by the U.S. government that had been reported stolen in November 2023 from a Lodi, New Jersey U.S. Army facility, where investigators had recovered a 2021 Chrysler, also owned by the U.S. government and reported stolen from Fort Indiantown Gap in Pennsylvania. A latent fingerprint taken from the 2021 Chrysler matched Chaves. When the U.S. Marshals arrested Chaves in Vermont on January 19, 2024, Chaves was driving the stolen 2018 Ford.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Chaves remains presumed innocent unless and until he is convicted of a crime. If convicted, Chaves faces a maximum of 10 years’ imprisonment, although the actual sentence will be advised by the U.S. Sentencing Guidelines and the United States Code.
This case is being investigated by U.S. Forest Service Law Enforcement and Investigations, the U.S. Marshals Service, the U.S. General Services Administration, the U.S. Federal Protective Service, and the U.S. Department of Agriculture, with assistance from the Vermont State Police and the Manchester Police Department.
The case will be prosecuted by Assistant U.S. Attorneys Jon Ophardt and Colin Owyang. Chaves is represented by the Office of the Federal Public Defender.
U.S. Attorney’s Office Concludes Investigation into Fatal Police Pursuit of James HerndonRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against four U.S. Park Police (USPP) officers, in connection with the June 2022 fatal police pursuit of James Herndon.
The U.S. Attorney’s Office, the USPP, and the Metropolitan Police Department (MPD) conducted a comprehensive review of the incident. This included a review of witness accounts; physical evidence; body-worn camera, surveillance footage, traffic camera footage, and aerial video footage; police radio recordings; and MPD and USPP reports.
According to the evidence, on June 27, 2022, MPD attempted to conduct a traffic stop on Herndon, who was riding a three-wheeled vehicle, based upon inaccurate information that he was a wanted homicide suspect. When Herndon fled from the officers, MPD initiated a police pursuit of him. During the pursuit, MPD requested assistance from USPP. After USPP officers joined the pursuit, MPD learned that Herndon was wanted for questioning only, and MPD terminated its pursuit. USPP was not notified of this corrected information and continued to pursue Herndon, who lost control of his vehicle and crashed in a single-vehicle accident a short time later. Herndon was pronounced deceased at the scene.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the USPP officers who were pursuing Herndon at the time of the crash are criminally liable for his death.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to charge officers with violations of either federal criminal civil rights laws or District of Columbia law. To prove civil rights violations, prosecutors must be able to prove that the involved officers willfully used more force than was reasonably necessary under the circumstances. This requires evidence that the force used was excessive under the circumstances, and that the officer acted with the specific intent to do something the law forbids. Similarly, for District of Columbia offenses such as second-degree murder or voluntary manslaughter, where a person reasonably believes that he is or others are in danger of serious bodily injury, force may be used to defend against that danger.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely.
U.S. Attorney’s Office Collects over $20 Million in Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
CHARLOTTESVILLE- Va.- United States Attorney Christopher R. Kavanaugh announced today that the Western District of Virginia collected $20,747,820.84 in criminal and civil actions in Fiscal Year 2023. Of this amount, $13,068,847.12 was collected in criminal actions and $7,678,973.72 was collected in civil actions.
Additionally, the Western District of Virginia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $40,042,441.35 in cases pursued jointly by these offices.
“My Office is committed to pursuing justice, both criminally and civilly, in order to protect the interests of the United States in every city, town, and county in the Western District of Virginia,” United States Attorney Kavanaugh said today. “As federal prosecutors, we have numerous tools we use to ensure that defendants are deprived of the ill-gotten financial gains of their criminal activity. These numbers, along with other metrics, prove that the Western District of Virginia is the wrong place for criminals to operate.”
In July 2023, the Western District of Virginia recovered $4.6 million as part of the settlement in the Health Connect America (HCA) case. HCA, headquartered in Franklin, Tennessee with locations in Big Stone Gap and Culpeper, Virginia, agreed to pay $4,611,375 to resolve allegations that it billed Virginia Medicaid for services not provided. Specifically, the allegations involved HCA billing Medicaid improperly for three separate behavioral health services available to children who qualify.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office for the Western District of Virginia, working with partner agencies and divisions, collected $19,321,456 in asset forfeiture actions in FY 2023. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney's Office Collects More Than $7.5 Million in Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
MADISON, WIS. – U.S. Attorney Timothy M. O’Shea announced today that the Western District of Wisconsin collected $7,596,171.74 in criminal and civil actions in Fiscal Year 2023. Of this amount, $5,862,991.16 was collected in criminal actions and $1,733,180.58 was collected in civil actions.
“Collecting money owed to crime victims and to the United States in criminal and civil cases is a priority of our office,” said U.S. Attorney O’Shea. “Our collections program is committed to holding defendants financially accountable for their illegal activities and ensuring that their debts, particularly to victims, are paid.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Western District of Wisconsin, working with partner agencies and divisions, collected $1,043,540 in asset forfeiture actions in FY 2023. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Troy man charged with evidence tampering in grizzly bear killingRead the Press Release
MISSOULA — A Troy man was charged this week with evidence tampering related to the shooting and killing of a grizzly bear on his property in 2020 and the discarding of the bear’s GPS collar in the Yaak River, U.S. Attorney Jesse Laslovich said today.
An information filed in U.S. District Court on Jan. 22 charges Othel Lee Pearson, 80, of Troy, with tampering with evidence, a felony, and failure to report taking of grizzly bear, a misdemeanor. Pearson faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the evidence tampering charge and a maximum of six months in prison and a $25,000 fine on the failure to report charge.
A court date for Pearson’s appearance has not yet been set. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
“As alleged, Pearson discarded a GPS collar on a grizzly bear and hid the bear’s claws and an ear tag in an attempt to avoid criminal prosecution for unlawfully killing a grizzly bear. Such conduct is illegal and, as shown here, will result in the prosecution of a federal felony,” U.S. Attorney Laslovich said.
The parties informed the court that there is a plea agreement in the matter, and it is anticipated that Pearson has agreed to plead guilty to both charges in the information. The plea agreement calls for the government and defendant to jointly recommend a sentence of three years of probation and an $8,000 fine. In exchange for guilty pleas, the United States agrees not to prosecute another individual in connection with the taking of the grizzly bear, and Pearson agrees to cooperate with the United States regarding the skull of a second grizzly bear discovered on National Forest System lands near his property.
As alleged in court documents, on Nov. 19, 2020, Pearson shot and killed a sow grizzly bear on his residential property, using a .270 rifle. Pearson cut a GPS collar that had been fitted to the bear and discarded the collar nearby in the Yaak River. Pearson also cut paws, ear tags and an identifying lip tattoo from the bear carcass. Pearson then concealed the bear’s claws and an ear tag in a hollowed-out tree on National Forest System land near his residence. As further alleged, Pearson tampered with these identifying objects to impair the criminal prosecution for the unlawful killing of the grizzly bear. Pearson did not report the killing of the grizzly bear to the U.S. Fish and Wildlife Service within five days of occurrence.
Assistant U.S. Attorney Randy Tanner is prosecuting the case. The U.S. Fish and Wildlife Service conducted the investigation.
PACER case reference. 24-4.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Tampa Man Sentenced to 15 Years in Prison for Enticing A Filipino Child into Producing Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Joshua Friedbauer (61, Tampa) to 15 years in federal prison for enticement of a minor and receipt of child sex abuse material. Friedbauer is also responsible for an Amy, Vicky, and Andy Child Pornography Victim Assistance Act assessment of $3,000 and a Justice for Victims of Trafficking Act assessment of $10,000. Friedbauer had pleaded guilty on July 5, 2023.
According to court documents, around June 2021, Friedbauer visited the Philippines and met the impoverished 13-year-old child victim through her mother, with whom Friedbauer shared a romantic relationship. Thereafter, Friedbauer coerced, persuaded, and used the child to engage in sexually explicit conduct for the purpose of producing photos of this conduct. In return, Friedbauer gave the child money and other gifts. When the child victim resisted and did not fully cooperate with his requests, Friedbauer continued to pressure and guilted her for more images.
“This predator traveled internationally and exploited the impoverished financial status of a mother and her child to create sexually explicit imagery for his perverse conduct,” said Homeland Security Investigations (HSI) Tampa Assistant Special Agent in Charge Kristopher Pagitt. “The vile actions of child predators make lifetime victims of their prey and cause irreparable harm. This successful sentencing is a testament to the strength of our global network of law enforcement partnerships, including the Philippine National Police, and our commitment to serve and protect victims of human trafficking and exploitation.”
This case was investigated by Homeland Security Investigations (HSI) in Tampa, with substantial assistance from the Philippine National Police. It was prosecuted by Assistant United States Attorney Erin Claire Favorit.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ 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.justice.gov/psc.
Statement of United States Attorney Todd Gee Regarding the Arrests in East Mississippi of over 30 Persons for Drug Trafficking, Illegal Firearms Possession, and Other CrimesRead the Press Release
I am Todd Gee, the United States Attorney for the Southern District of Mississippi. Today we are announcing the arrests of approximately 40 individuals, who are being charged in 10 federal indictments of large-scale drug trafficking crimes that occurred throughout East Mississippi with connections to Mexico, California, Texas, Alabama, and elsewhere.
The persons arrested today were engaged in trafficking major quantities of dangerous drugs, such as methamphetamine, MDMA, and cocaine. They peddled this poison for profit, affecting the lives of so many.
During this investigation, agents seized large quantities of these drugs and uncovered evidence of their trafficking in many forms, such as methamphetamine pills, liquid methamphetamine, crystal methamphetamine (“ICE”), powder cocaine, and crack cocaine. These deadly drugs kill tens of thousands of persons every year throughout Mississippi and our nation. Some of these defendants are even charged with committing a methamphetamine drug offense while minors, including a young toddler, were at the location. They choose to harm the health and life of the youngest in our community.
Investigators also seized large amounts of cash and firearms. From one bust alone, agents seized over $48,000 in cash, a semi-automatic weapon, another firearm, numerous rounds of ammunition, and thousands of dollars in narcotics.
The arrests and federal indictments we are announcing today prove the commitment our federal, state, and local law enforcement agencies have to working together to destroy the networks of large-scale drug traffickers operating in Meridian and the East Mississippi area.
I have a simple message for the drug traffickers in East Mississippi that are still on the streets after today’s arrests: Get out of the business, or like those arrested today, you will eventually spend a large portion of your life behind bars.
To the citizens of Meridian, East Mississippi, and the other areas affected by these traffickers, we hope and expect that these arrests will make your families and community safer. But we need your help to keep making a difference. If you see trafficking and other dangerous crimes going on, say something. Pull aside that police office you trust in church and tell them what you saw, call 911, or report a tip about what you saw to the hotlines maintained by the DEA, HSI, ATF, MBN, and other agencies here with me today.
The large number of arrests made today is the product of several years of cooperation by federal, state, and local agencies. I want to particularly thank the agencies whose leadership is here with me today: the U.S. Department of Homeland Security’s Homeland Security Investigations (HSI); the U.S. Drug Enforcement Administration (DEA); the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the U.S. Marshal’s Service; the Mississippi Department of Public Safety; the
Mississippi Bureau of Narcotics; the East Mississippi Drug Task Force; the Lauderdale County Sheriff’s Department; the Newton County Sheriff’s Department; the Scott County Sheriff’s Department; the office of District Attorney Kassie Coleman; the office of District Attorney Steven Kilgore; the office of District Attorney Gregory Griggers; and the Alabama 17th Judicial Circuit Drug Task Force.
I thank all of you for joining us here today to announce the product of our teamwork. The Department of Justice looks forward to continuing to work with all of you to fight drug trafficking and violent criminals throughout Mississippi.
St. Louis County Man Sentenced to 78 Months in Prison for Possessing Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Tuesday sentenced a St. Louis County, Missouri man who had amassed at least 30,000 images containing child sexual abuse material to 78 months in prison.
Daniel Hass, 66, pleaded guilty in August to three counts of possession of child pornography. He admitted using peer-to-peer file sharing programs to download and view child sexual abuse material. In conversations with St. Louis County Police, Hass estimated that he had 20,000 images containing the material and that he had been viewing such materials for about 20 years. Investigators located at least 30,000 images and hundreds of videos containing child pornography, as well as videos Hass had surreptitiously recorded of adult women undressing.
The St. Louis County Police Department and the FBI investigated the case. Assistant U.S. Attorney Kyle Bateman prosecuted the case.Semi Driver Caught with 40 Kilograms of Illegal Drugs Sentenced to Federal PrisonRead the Press Release
EAST ST. LOUIS, Ill. – A district judge sentenced a semitrailer driver to 12 years in federal prison after he admitted to hauling nearly 40 kilograms of heroin, fentanyl, meth and cocaine through southern Illinois.
Ledaniel Russell, 50, of Fort Worth, Texas, pleaded guilty to one count of possession with intent to distribute a controlled substance: heroin, fentanyl, meth and cocaine.
“Heroin, fentanyl, meth and cocaine all have a dangerous history of infecting individuals and causing harm in communities due to the war on drugs,” said U.S. Attorney Rachelle Aud Crowe. “I commend the Illinois State Police for interrupting this drug trafficking operation and having the training to detect semitrailer drivers with illegitimate agendas.”
Troopers with the Illinois State Police conducted a traffic stop on a semitrailer driven by Russell along Interstate 70 in Madison County on Sept. 15, 2022. Following a search of Russell’s trailer, troopers located two large duffel bags concealing a kilogram of heroin, 4.5 kilograms of fentanyl, almost 32 kilograms of meth and nearly 2 kilograms of cocaine.
"The Illinois State Police is committed to stopping illegal drug traffickers and keeping dangerous drugs from flooding and hurting our communities," said ISP Director Brendan F. Kelly. "Whether it's a trooper on the road or a special agent investigating, ISP is targeting drug traffickers and will continue to work with the U.S. Attorney's Office to put them behind bars.”
In an interview with law enforcement, Russell admitted he planned to deliver the drugs to Michigan, after he stopped in Indiana to deliver his truck’s legitimate cargo. In addition to the 12-year prison sentence, Russell will serve five years of supervised release.
“We know our nations’ freeways are the arteries that bring Mexican cartels’ illegal drugs into our communities,” said Assistant Special Agent in Charge Joseph Dixon, head of Drug Enforcement Administration investigations in southern Illinois. “DEA, working in lockstep with our partners from the Illinois State Police, will continue to be laser-focused on targeting, disrupting and dismantling the pipelines used to transport deadly drugs so they don’t impact the health and safety of our citizens."
The Illinois State Police and DEA led the investigation. Assistant U.S. Attorney Daniel S. Carraway prosecuted the case.
Romanian Man Found Guilty of Stealing Identities of Victims on Public Assistance to Fraudulently Obtain EBT FundsRead the Press Release
SANTA ANA, California – A Romanian man was found guilty by a judge today of stealing victims’ identities to withdraw money from their public-assistance accounts without their permission.
Florin Duduianu, 39, whose last known residence was in Mission Viejo, was found guilty by United States District Judge John W. Holcomb after a two-day bench trial of two counts of aggravated identity theft.
According to evidence presented at trial, in August 2023, law enforcement was conducting an operation to combat Electronic Benefits Transfer (EBT) fraud at various banks and ATMs in Placentia. Police saw Duduianu, accompanied by a passenger, drive up to a Wells Fargo ATM and make multiple withdrawals on different cards. Based on this information, officers pulled Duduianu over. Duduianu lied to the officers, telling them he was depositing, not withdrawing, money from the ATM.
During a search of Duduianu’s passenger, officers found four Visa gift cards, three Wells Fargo ATM receipts, and $1,850 in cash. The Visa gift cards were encoded with EBT card numbers. Those numbers were run through an EBT database, which showed that they belonged to four different people. Based on the Wells Fargo receipts, Duduianu used two of the cards to make three withdrawals totaling $1,850 from the ATM.
Police contacted the accountholders for the two EBT accounts from which Duduianu made withdrawals. The accountholders said that they did not know Duduianu or his car passenger and did not give permission to anyone to withdraw funds from their accounts.
During a search of Duduianu’s cellphone, law enforcement found dozens of photos and videos related to ATM skimming as well as tools and techniques used to skim EBT information. Law enforcement also found photos of large sums of cash and hundreds of EBT numbers from multiple states. In the chat history of Duduianu’s phone, the government found an article about EBT fraud that was sent from his phone to four other phone numbers.
On another smartphone law enforcement recovered during Duduianu’s arrest, law enforcement found additional videos related to ATM skimming. Phone records and EBT records showed that this phone was used to check the balance of the EBT accounts of the victims in this case, five days before Duduianu withdrew $1,850 from those same accounts.
Previously in this case, Duduianu pleaded guilty on January 5 to three counts of bank fraud and unlawful use of unauthorized access devices.
Judge Holcomb scheduled a March 29 sentencing hearing, at which time he will face a statutory maximum sentence of 30 years in federal prison for each bank fraud count, up to 20 years in federal prison for the unauthorized access devices count, and a mandatory two-year prison sentence consecutive to his underlying sentence for each aggravated identity theft count.
The FBI and the Placentia Police Department investigated this matter.
Assistant United States Attorneys David Y. Pi of the Major Frauds Section and Diane B. Roldán of the General Crimes Section are prosecuting this case.
Republic Man Indicted for Illegal Firearm Following Shooting at Private PartyRead the Press Release
SPRINGFIELD, Mo. – A Republic, Mo., man who was providing security at a private party where four individuals were injured by gunfire was indicted by a federal grand jury today for illegally possessing a firearm.
Timothy Johnell Smith, 37, was charged with being a felon in possession of a firearm in an indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Smith on Jan. 3, 2024.
The federal indictment alleges that Smith was in possession of a Bear Creek Arsenal rifle between Dec. 31, 2023, and Jan. 1, 2024.
According to an affidavit filed in support of the original criminal complaint, deputies with the Greene County, Mo., Sheriff’s Department responded to a call for service at a private party at The Barnhouse in Springfield on Jan. 1, 2024. Smith and his wife had been hired to provide security at the New Year’s Eve party. Deputies were arriving at the scene when another call was dispatched for shots fired at the same location.
Six people were injured; four victims sustained gunshot wounds and were transported to local hospitals. A witness at the party told deputies that Smith had attempted to break up a fight involving several people, and had fired an AR-style rifle into the ceiling. Witnesses reported they heard four to five additional gunshots. Deputies found the rifle near a storage area on the upper level of the venue. Deputies interviewed Smith, the affidavit says, who told them he carried the AR-style rifle for “intimidation.”
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Smith has prior felony convictions for burglary, receiving stolen property, and theft of a motor vehicle.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greene County Sheriff’s Department.
Project Safe Neighborhoods
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.
President of Hair Testing Company Pleads Guilty to Defrauding over 88,000 Customers in Testing ScamRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of KYLE TSUI in connection with a fraud scheme that resulted in sales of approximately $5.9 million worth of fabricated allergy and sensitivity tests to tens of thousands of customers. TSUI pled guilty to wire fraud and mail fraud before U.S. Magistrate Judge Judith C. McCarthy earlier today, following his extradition from Spain in November 2023.
U.S. Attorney Damian Williams said: “As he has now admitted, Kyle Tsui defrauded tens of thousands of innocent victims, whose health was put at risk with false allergy and sensitivity testing results. Tsui’s company advertised ‘highly-rated’ allergy and sensitivity testing services but didn’t even attempt to test the samples his paying customers sent in, instead directing others to throw the samples in the garbage. Tsui now faces prison time for his brazen scam.”
According to the allegations contained in the Indictment, the defendant’s statements when pleading guilty, and statements made in related court filings and proceedings:
From September 2018 through April 2019, TSUI orchestrated a scheme to defraud customers of his company, the “Allergy Testing Company,” by purporting to sell food and environmental sensitivity testing services that TSUI knew were not, in fact, being performed. In total, TSUI sold fabricated tests worth approximately $5.9 million to more than 88,000 victims through an online marketplace.
TSUI’s company promoted its “[h]ighly-rated, top selling sensitivity and intolerance test” that “determines how your body responds to 800 different food and environmental items” with just “a small hair sample.” But rather than actually test the hair samples as customers were promised, TSUI directed that the hair samples be discarded in the trash without any laboratory analysis. Customers then received fabricated test results purporting to identify certain foods and environmental factors that were “safe” for them and others that the customers were supposedly “sensitive” to and should avoid.
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KYLE TSUI, 41, of Ontario, Canada, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of mail fraud, which carries a maximum sentence of 20 years in prison. TSUI also agreed to pay forfeiture in the amount of $4,165,884.70.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. TSUI’s sentencing is scheduled for May 30, 2024, before U.S. District Judge Kenneth M. Karas.
Mr. Williams praised the outstanding work of the U.S. Postal Inspection Service. Mr. Williams also thanked the Hyde Park Police Department, the New York State Troopers, the Toronto Police Service, the Department of Justice’s Office of International Affairs, and the Canadian Anti-Fraud Centre for their assistance in the investigation, as well as the Government of Spain for working with U.S. authorities to arrest and extradite TSUI to the United States.
If you believe you are a victim of the Allergy Testing Company fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator, is available here.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Qais Ghafary and Benjamin Levander are in charge of the prosecution, which was previously handled by former Assistant U.S. Attorney Daniel Loss.
Polk County Man Pleads Guilty for Role in Scheme to Ship Export-Controlled Firearm Components, Ammunition, and Stolen Credit Cards OverseasRead the Press Release
PORTLAND, Ore.—A Polk County, Oregon man pleaded guilty today in federal court to multiple charges stemming from his involvement in a scheme to ship export-controlled firearm components, ammunition, and stolen credit cards to multiple foreign countries, including Russia, the United Kingdom, and the United Arab Emirates.
Alan Michael Placzkiewicz, 76, of Falls City, Oregon, pleaded guilty to one count each of illegally possessing ammunition as a convicted felon and delaying or destroying mail.
According to court documents, throughout his involvement in the illegal smuggling scheme, Placzkiewicz operated as a mule, receiving packages containing various items, and as directed by others, shipping them to addresses overseas. Placzkiewicz participated in the scheme knowingly and continued participating after being warned by multiple government officials about his reshipping activity.
In October 2020, Placzkiewicz received two packages in the mail at his residence in Falls City and, following his usual course of action when receiving similar packages, opened them, sent pictures of the items they contained through a portal online, repackaged the items, and shipped them to foreign addresses. In this instance, the packages contained four AR-15-style assault rifle stocks and 1,300 rounds of 6.5mm 139 grain bullets. Placzkiewicz relabeled both packages, declared them as containing “camping gear,” and mailed them to an individual in Moscow, Russia. Both packages were intercepted by U.S. Customs and Border Protection (CBP).
Later, in January 2021, Placzkiewicz received a package containing a credit card issued by a bank to an individual without their knowledge. Placzkiewicz repackaged the card as “office supplies” and reshipped it.
On August 2, 2022, Placzkiewicz was charged by criminal complaint with fraud and related activity in connection with identification documents, and conspiracy to commit mail and bank fraud. Later, on May 2, 2023, a federal grand jury in Portland returned a seven-count indictment charging Placzkiewicz with conspiracy to commit mail and bank fraud, mail fraud, and unlawfully transferring, possessing, or using a means of identification.
Today, Placzkiewicz pleaded guilty to a two-count criminal information, filed on November 15, 2023, charging him with illegally possessing ammunition as a convicted felon and delaying or destroying mail.
Illegally possessing ammunition as a convicted felon is punishable by up to 10 years in federal prison, a $250,000 fine, and three years’ supervised release. Delaying or destroying mail is punishable by up to one year in prison, a $100,000 fine, and five years’ supervised release.
As part of his plea agreement, Placzkiewicz has agreed to pay more than $117,000 in restitution to his victims as recommended by the government and ordered by the court. He will be sentenced on April 16, 2024.
This case was investigated by HSI with assistance from the U.S. Postal Inspection Service (USPIS) and CBP. It is being prosecuted by Rachel K. Sowray, Assistant U.S. Attorney for the District of Oregon.
Pennsylvania Man Sentenced to Prison for Sex Offense Against A MinorRead the Press Release
CHARLESTON, W.Va. – Kyle Andrew Umstead, 35, of Douglasville, Pennsylvania, was sentenced today to six years in prison, to be followed by 15 years of supervised release, for traveling in interstate commerce to engage in illicit sexual conduct with a minor. Umstead must also register as a sex offender.
According to court documents and statements made in court, beginning in late March 2022, Umstead began communicating online with a girl he believed to be 14 years old. Umstead admitted that in multiple online conversations he repeatedly told the girl he wanted to take her virginity and regularly described in graphic detail the sexual acts he wished to perform with her. Umstead further admitted that he sent the girl over two dozen photos of his penis and over a dozen videos of him masturbating. Umstead also sent the girl numerous images of pornography depicting adults engaged in sexual activity and women engaged in bestiality with dogs. Umstead admitted that he encouraged the girl to engage in bestiality and incest.
On March 18, 2023, Umstead traveled from Douglasville, Pennsylvania, to Kanawha County, West Virginia. Umstead admitted that he traveled to Kanawha County with the intent of engaging in sexual activity with the girl, including sexual intercourse. Upon his arrival in Kanawha County, Umstead was arrested by law enforcement officers. Following his arrest, officers found videos and images of child pornography on Umstead’s cell phone.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Task Force.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-47.
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Owner of Tax Return Preparation Business Sentenced to PrisonRead the Press Release
Jacksonville, FL – A Florida woman was sentenced today to two years in prison for a scheme to file false tax returns and to two years in prison for an unrelated online romance scam. The two sentences are to run concurrently with each other.
According to court documents and statements made in court related to the tax scheme, Iona Coates owned and operated Bits & Bytes Accounting Services Inc., which provided tax preparation and bookkeeping services. Between 2015 and 2020, Coates claimed $228,788 in tax refunds on her individual federal income tax returns by falsely reporting that taxes had been withheld from her income and had been paid to the IRS. Coates further enriched herself by creating nearly 20 sham entities for the sole purpose of filing false tax returns that claimed fuel tax credits. Between 2017 and 2019, Coates prepared and filed 35 such returns.
According to court documents and statements made in court regarding the online romance scheme, in 2020, Coates met two individuals online through a dating website. She subsequently provided them with her bank account information and began receiving money into her account from victims of the scheme. She sent the money she received to them. In December 2020, U.S. Secret Service agents met with Coates and explained that she was acting as a “money mule” in an online romance scheme. As the agents described, the individuals, acting as fake suitors on dating websites, convinced victims to send money to Coates’s bank account. The Secret Service advised Coates to cease participation in the scheme, as the individuals were using her bank account to facilitate their theft. Coates, however, soon thereafter began acting as a money mule for another online romance scammer. Between December 2020 and September 2021, she received $229,376.26 into her bank accounts from victims of the scheme and sent the money to the scammer.
In addition to the term of imprisonment, U.S. District Judge Brian Davis ordered Coates to serve a total of three years of supervised release for both schemes. Judge Davis also ordered Coates to pay approximately $186,288 in restitution to the United States related to the tax charges and $229,376.26 in restitution to the victims of the romance scheme.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation investigated the tax scheme and the U.S. Secret Service investigated the online romance scheme.
Trial Attorneys Kevin Schneider and Wilson Stamm of the Justice Department’s Tax Division and Assistant U.S. Attorney Kevin C. Frein for the Middle District of Florida prosecuted the tax case. Assistant U.S. Attorney Frein prosecuted the online romance scheme case.
Owner of Tax Return Preparation Business Sentenced to PrisonRead the Press Release
A Florida woman was sentenced today to two years in prison for a scheme to file false tax returns and to two years in prison for an unrelated online romance scam. The two sentences are to run concurrently with each other.
According to court documents and statements made in court related to the tax scheme, Iona Coates owned and operated Bits & Bytes Accounting Services Inc., which provided tax preparation and bookkeeping services. Between 2015 and 2020, Coates claimed $228,788 in tax refunds on her individual federal income tax returns by falsely reporting that taxes had been withheld from her income and had been paid to the IRS. Coates further enriched herself by creating nearly 20 sham entities for the sole purpose of filing false tax returns that claimed fuel tax credits. Between 2017 and 2019, Coates prepared and filed 35 such returns.
According to court documents and statements made in court regarding the online romance scheme, in 2020, Coates met two individuals online through a dating website. She subsequently provided them with her bank account information and began receiving money into her account from victims of the scheme. She sent the money she received to them. In December 2020, U.S. Secret Service agents met with Coates and explained that she was acting as a “money mule” in an online romance scheme. As the agents described, the individuals, acting as fake suitors on dating websites, convinced victims to send money to Coates’s bank account. The Secret Service advised Coates to cease participation in the scheme, as the individuals were using her bank account to facilitate their theft. Coates, however, soon thereafter began acting as a money mule for another online romance scammer. Between December 2020 and September 2021, she received $229,376.26 into her bank accounts from victims of the scheme and sent the money to the scammer.
In addition to the term of imprisonment, U.S. District Judge Brian Davis ordered Coates to serve a total of three years of supervised release for both schemes. Judge Davis also ordered Coates to pay approximately $186,288 in restitution to the United States related to the tax charges and $229,376.26 in restitution to the victims of the romance scheme.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation investigated the tax scheme and the U.S. Secret Service investigated the online romance scheme.
Trial Attorneys Kevin Schneider and Wilson Stamm of the Justice Department’s Tax Division and Assistant U.S. Attorney Kevin C. Frein for the Middle District of Florida prosecuted the tax case. Assistant U.S. Attorney Frein prosecuted the online romance scheme case.
Orleans Parish Woman Sentenced for Federal Drug and Gun OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – DANIELLE REED, age 43, a resident of New Orleans, was sentenced on January 17, 2024 to 130 months imprisonment, three (3) years supervised release, and a $200 mandatory special assessment fee, announced U.S. Attorney Duane A. Evans. REED previously pleaded guilty to possession with intent to distribute methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) and possession of a firearm in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1)(A).
According to court documents, a Drug Enforcement Agency (DEA) investigation revealed that REED was a drug dealer who primarily sold crystal methamphetamine. DEA agents utilized a confidential source to conduct two controlled purchases of methamphetamine from REED. On April 19, 2022, DEA agents seized a quantity of methamphetamine and two firearms from REED.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Financial Crimes Unit.
New Orleans Man Pleads Guilty to Violating Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LA , - United States Attorney Duane A. Evans announced that TYRONE SMOTHERS, age 41, of New Orleans, plead guilty on January 18, 2024, to possession with intent to distribute a controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, SMOTHERS was previously convicted of felony offenses in Orleans Parish. Due to his criminal history, he is prohibited from having a firearm. He was indicted for possessing multiple firearms on May 17, 2023. He was also charged in the indictment with possessing fentanyl, cocaine, methamphetamine, and marijuana with the intent to distribute as well as possessing the firearms in furtherance of his drug distribution.
For the possession with intent to distribute charge, SMOTHERS faces up to twenty (20) years imprisonment, a fine of up to $1,000,000.00, and at least three (3) years of supervised release. For the possession of a firearm in furtherance of drug trafficking charge, SMOTHERS faces a minimum of five (5) years up to life imprisonment, a fine of up to $250,000, and up to five (5) years of supervised release. For the possession of a firearm as a convicted felon charge, SMOTHERS faces up to fifteen (15) years imprisonment, up to a $250,000 fine, and up to three (3) years of supervised release. For each charge, SMOTHERS faces payment of a $100.00 mandatory special assessment fee. Sentencing is scheduled for April 25, 2024.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The case is being prosecuted by Special Assistant U.S. Attorney Nicholas Rayburn of the Violent Crime Unit.