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19 January 2024
U.S. Attorney’s Office Collects $30.7 Million in Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
NEWS RELEASE SUMMARY – January 19, 2023
SAN DIEGO – The U.S. Attorney’s Office for the Southern District of California collected $30,730,539.87 in criminal and civil actions in Fiscal Year 2023. Of this amount, $27,973,011.98 came from criminal actions and $2,757,527.89 from civil actions.
Additionally, the Southern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect $845,298.42 in cases pursued jointly by these offices.
“We pursue every possible means to compensate victims for loss and trauma suffered as a result of criminal acts,” said U.S. Attorney Tara McGrath. “Over the past year we joined forces with investigators and victim rights advocates to maximize restitution and return assets as quickly and efficiently as possible.”
For example, in United States v. Glenn Arcaro, 21CR2542-TWR, the government recovered and subsequently sold bitcoin controlled by the defendant, resulting in $17,647,813 in restitution paid directly to the victims of his criminal activity. The U.S. Attorneys’ Office also secured an additional $1,003,900.17 in forfeited funds for victims. Please see https://www.justice.gov/usao-sdca/pr/victims-bitconnect-scheme-receive-more-17-million-compensate-losses.
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 in the Southern District of California, working with partner agencies and divisions, collected $9,072,677 in asset forfeiture actions in Fiscal Year 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.
Texas Man Pleads Guilty to Kidnapping 13-Year-Old Girl at GunpointRead the Press Release
LOS ANGELES – A Texas man pleaded guilty today to kidnapping a 13-year-old girl at gunpoint last year in San Antonio, admitting that he drove her to California, threatened her with a firearm, and sexually assaulted her multiple times before his arrest in Long Beach.
Steven Robert Sablan, 62, of Cleburne, Texas, pleaded guilty to one count of kidnapping. Sablan has been in federal custody since July 2023.
According to his plea agreement, on July 6, 2023, in San Antonio, Sablan abducted the victim, held her, and transported her in his gray Nissan Sentra to Long Beach, California. The victim told Sablan she was 13 years old. During this ordeal, Sablan used a firearm to threaten and control the victim.
Sablan confined the victim until she was rescued on July 9, 2023, in Long Beach after a Good Samaritan called 911 after seeing her holding a “Help Me” sign in the window of Sablan’s car.
Sablan admitted in his plea agreement that during the Texas-to-California journey, he sexually assaulted the victim. At the time of the crime, Sablan had no legal custody or familial relationship to the victim.
United States District Judge Fernando L. Aenlle-Rocha scheduled an October 25 sentencing hearing, at which time Sablan will face a mandatory minimum sentence of 20 years in federal prison and a statutory maximum sentence of life imprisonment.
The FBI and the Long Beach Police Department investigated this matter. The Cleburne (Texas) Police Department provided assistance.
Assistant United States Attorney Chelsea Norell of the Violent and Organized Crime Section is prosecuting this case.
St. Louis County Man Who Admitted Elder Fraud Admits Disability FraudRead the Press Release
ST. LOUIS – A St. Louis County, Missouri man who last year admitted financially exploiting two elderly women admitted on Thursday that he was committing disability fraud while doing so.
Gino Rives, 36, of Edmundson, pleaded guilty in U.S. District Court in St. Louis to five counts of theft of government funds. He admitted fraudulently applying for payments from the Social Security Administration’s Supplemental Security Income Program in 2010. He claimed to have a mental health disorder and pretended to be incapable of answering basic questions during an interview with a SSA representative on May 14, 2010, and during a psychological evaluation with a SSA psychologist on August 30, 2010. He falsely claimed to have difficulty concentrating, following instructions, completing tasks and with his memory. He claimed he had never been employed, could not drive, was unable to handle his financial affairs and had no assets.
Rives admitted concealing his employment in the construction and tree trimming industries, his participation in competitive mixed martial arts, his ownership of houses and vehicles, and his receipt of more than $721,692 since 2021. Rives fraudulently received more than $91,000 via his disability fraud.
In October, Rives pleaded guilty to one count of access device fraud and one count of fraudulently effecting transactions and admitted exploiting two elderly women for years. He obtained four vehicles and checks totaling at least $500,000 from one woman and moved the other woman out of her home and began renting it to his mother.
Rives is scheduled to be sentenced on the disability fraud case on April 17 and the elder fraud case on March 14.
The Social Security Administration Office of Inspector General and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Anyone with information about disability fraud is asked to contact the SSA Office of Inspector General fraud hotline at 1-800-269-0271 or submit a report online at oig.ssa.gov/report. Concerns about suspected abuse or neglect of the elderly or disabled should be directed to Missouri’s Adult Abuse and Neglect Hotline at 800-392-0210 or online at health.mo.gov/safety/abuse/.
South Georgian Sentenced for Illegally Possessing a FirearmRead the Press Release
ALBANY, Ga. –A Coffee County, Georgia, resident with a violent criminal past was sentenced to prison for illegally possessing a firearm during a car chase that ended in a police department parking lot.
Bryan Everal Pittman, 33, of Fargo, Georgia, was sentenced to serve 110 months in prison to be followed by three years of supervised release by U.S. District Judge Louis Sands on Jan. 18, after he pleaded guilty to one count of possession of a firearm by a convicted felon on Oct. 3, 2023. Pittman is not eligible for parole.
“Convicted felons with violent criminal histories caught illegally possessing a firearm will face federal consequences for breaking the law,” said U.S. Attorney Peter D. Leary. “We are working closely with our federal, state and local law enforcement partners to identify cases involving repeat and violent offenders to help hold them accountable for their crimes and get them off the streets.”
“Pittman, with a lengthy criminal history, once again terrorized innocent victims during his most recent crime. It is past time that he be sent to federal prison with a lengthy sentence for his actions,” said Rich Bilson, Supervisory Senior Resident Agent of FBI Atlanta’s Albany office. “The FBI and our state and local partners will continue to remove repeat violent offenders from our streets to keep our communities safe.”
According to court documents and other evidence, Hahira Police Department police officers observed a white van and another car quickly enter the police department’s parking lot on May 26, 2022. Officers approached the white van; there were several people inside the van. One of the occupants told officers that the other vehicle was chasing them and “driving crazy” including going through stop signs; the individual also stated that someone inside the vehicle pointed a gun at them, and they drove to the police department for help. A woman in the van told officers that Pittman—who was in the other vehicle—had threatened her with a gun, and she was trying to get away from him.
Pittman and two other people were in the second vehicle that entered the police department parking lot. An officer asked them if anyone had a gun. Pittman, who was seated in the back, said he did not. The officer noticed a bulge in the shape of a small handgun in the pocket of the back of the driver’s seat, along with a methamphetamine pipe. Pittman and the other two occupants got out of the car, and officers found a .380 semi-automatic pistol with a chambered round of ammunition and five rounds in the magazine. Another round was located on the floorboard next to the rear driver’s side door. The firearm belonged to Pittman. Pittman has a lengthy violent criminal history, including past state convictions for aggravated assault, terroristic threats, battery and simple assault. It is illegal for a convicted felon to possess a firearm.
These cases were prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime by bringing together a broad spectrum of stakeholders to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities; supporting community-based organizations that help prevent violence from occurring in the first place; setting focused and strategic enforcement priorities; and measuring the results.
The case was investigated by FBI and the Hahira Police Department.
Assistant U.S. Attorney Hannah Couch prosecuted the case for the Government.
South Bend Man Sentenced to 240 Months in PrisonRead the Press Release
SOUTH BEND – Quintin Ferguson, 34 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to arson, announced United States Attorney Clifford D. Johnson.
Ferguson was sentenced to 240 months in prison and 2 years of supervised release.
According to documents in the case, in January of 2021, Ferguson intentionally set fire to an apartment unit in Granger, Indiana. The fire spread from that unit to the rest of the building, affecting over a dozen apartments. Due to the rescue efforts of citizens and police and fire personnel, apartment residents escaped uninjured. Ferguson was not only captured on video starting the fire, but the coordinates from the GPS monitor he was wearing at the time placed him at the scene of the fire.
This case was investigated by the Bureau of Alcohol, Tobacco, Fire and Explosives with assistance from the Mishawaka Fire Department, the Mishawaka Police Department, and the South Bend Police Department. The case was prosecuted by Assistant United States Attorneys Kimberly L. Schultz and Jerome W. McKeever.
Silvis, Illinois, Man Sentenced to 210 Months in Prison for Distribution, Sale, and Possession of Child PornographyRead the Press Release
ROCK ISLAND, Ill. – A Silvis, Illinois, man, Aaron Ruthey, 43, was sentenced on January 17, 2024, to an aggregate 210 months of imprisonment, to be followed by ten years of supervised release, for distribution of child pornography, sale of child pornography, and possession of child pornography. Ruthey was further ordered to pay restitution totaling $67,500.00 to nine victims.
At the sentencing hearing, the United States presented evidence establishing that Ruthey was engaged in the advertisement of and ultimate sale of an online collection of child pornography. Ruthey has remained in federal custody since his arrest on August 17, 2022.
Also at the hearing, Chief U.S. District Judge Sara Darrow found that Ruthey not only sold child pornography but was an active participant in the child pornography market and capitalized on harm to the victims. Judge Darrow explained that Ruthey’s actions, including adding commentary to two of the images, increased the marketability and the demand for the content. Within the content Ruthey sold were videos and images depicting the sexual abuse of infants and toddlers.
Ruthey pleaded guilty in June 2023 to all charges. The statutory penalties for the distribution of child pornography are five to twenty years of imprisonment; for the sale of child pornography, five to twenty years of imprisonment; and for possession of child pornography, up to twenty years of imprisonment. The penalties on each count include supervised release terms ranging from five years to life.
“This sentencing demonstrates the importance of collaboration between our state and federal partners in ensuring justice for and the safety of children in our community,” said Assistant U.S. Attorney Jennifer L. Mathew.
“The U.S. Secret Service remains committed to investigating and arresting individuals who sexually exploit children and transmit child sexual abuse material,” said Stephen S. Webster, Resident Agent in Charge, Springfield Resident Office, United States Secret Service. “We are proud of our partnerships with the federal, state, and local agencies who work collectively to investigate and prosecute crimes against minors. These predators cause significant and long-lasting damage, and we are dedicated to holding them accountable.”
“When law enforcement agencies work together, bringing multiple resources to the table, it is a force multiplier. Combatting crimes against children often takes this kind of collaboration,” said FBI Springfield Field Office Special Agent in Charge David Nanz. “FBI Springfield values the relationships we have with our law enforcement partners, because those relationships result in safer communities.”
Saucier Man Sentenced to over 2 Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Gulfport, Miss. – A Saucier, Mississippi man was sentenced to 27 months in federal prison for possession of a firearm by a convicted felon.
Damion Xavier Giglio, 39, was sentenced in U.S. District Court in Gulfport.
According to court documents, on February 11, 2023, Giglio was encountered by Marine Resource Officers on a piece of property located in Saucier, Harrison County, MS. During the contact, Mr. Giglio was arrested for trespassing, not wearing hunter’s orange, and being a felon in possession of a firearm.
Giglio was indicted by a federal grand jury on March 21, 2023. He pled guilty on October 17, 2023, to possession of a firearm by a convicted felon.
U.S. Attorney Todd W. Gee and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Sarasota Methamphetamine Trafficker Pleads GuiltyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Alfred Clayton Rosier, Jr. (29, Sarasota) has pleaded guilty to possession with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Rosier faces a minimum mandatory penalty of 15 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on September 22, 2022, a deputy from the Manatee County Sheriff’s Office retrieved a package from a FedEx facility after the deputy’s canine partner had alerted on the package for the presence of narcotics. After the deputy had procured and executed a search warrant on the package, law enforcement discovered approximately 16 pounds of methamphetamine. The package was addressed to a residence in Sarasota.
Agents from the Drug Enforcement Administration, along with officers from the Sarasota Police Department and deputies from the Sarasota County Sheriff’s Office, conducted a controlled delivery of a portion of the methamphetamine to the residence. Rosier was found outside of the residence with a large box as law enforcement was executing a search warrant. When Rosier observed law enforcement approaching, he threw the box inside of a parked white van and jumped inside of a car parked next to the van. Upon a search of the van and the box that Rosier had thrown inside, agents discovered approximately 22 pounds of marijuana and 647 grams of methamphetamine. They also recovered a small backpack that contained a loaded pistol and documents addressed to Rosier.
This case was investigated by the Drug Enforcement Administration, the Manatee County Sheriff’s Office, the Sarasota Police Department, and the Sarasota County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Shauna S. Hale. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
San Carlos Resident Charged with Investment Fraud SchemeRead the Press Release
SAN FRANCISCO – David Scott Cacchione was arrested and has been charged by criminal complaint with conspiring to commit wire fraud in connection with an investment fraud scheme, announced United States Attorney Ismail J. Ramsey, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, and IRS Criminal Investigation (CI) Oakland Field Office Acting Special Agent in Charge Michael Mosley.
According to the complaint, Cacchione, 59, of San Carlos, worked with another person to solicit investors in what they called an “Accounts Receivable Factoring Program.” The complaint alleges Cacchione and an unnamed co-conspirator told victims that investment funds would be used to purchase investment grade accounts receivable, and that investors would be repaid once the receivables were paid. According to the complaint, investors were promised as much as 2 percent per month in interest on the investment and were told that Cacchione himself was a large investor in the program.
The complaint alleges these representations were false and the investment funds were not used to purchase accounts receivables. From at least November 2021 through September 2022, at least four victims were cheated out of a total of about $1.1 million, according to the allegations. The complaint also states that, instead of investing the money as promised, Cacchione and his co-conspirator spent the money on personal and living expenses. The criminal complaint charges Cacchione with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 and 18 U.S.C. § 1343.
Cacchione was arrested on January 16, 2024, and made his initial appearance in federal court in San Francisco on January 17, 2024. Cacchione remains in custody pending further proceedings in the case. Cacchione’s next scheduled appearance is at 9:30 a.m. on January 19, 2024, for a detention hearing before U.S. Magistrate Court Judge Lisa J. Cisneros.
A criminal complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of twenty years in prison and a fine of $250,000, plus restitution if appropriate, for a violation of 18 U.S.C. § 1349. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Aarian Beiti. The prosecution is the result of an investigation by CI and the FBI.
complaint_filed-signed-copycacchione.pdfRichmond Heights Hotel Manager Stole $150,000, Indictment AllegesRead the Press Release
ST. LOUIS – A manager of a Richmond Heights, Missouri hotel has been indicted and accused of using her position to steal more than $150,000 from her employer.
Angelique Patterson, 39, was indicted in U.S. District Court in St. Louis Wednesday with five counts of wire fraud. The indictment alleges that Patterson defrauded a Richmond Heights, Missouri hotel where she was employed as assistant general manager.
From March through at least October of 2023, Patterson manipulated the hotel’s reservation system and altered the records of customers who had paid using cash or credit cards, the indictment says. Patterson changed those reservations to falsely show that the customers had used the hotel’s loyalty rewards system “points” to pay for their stay. Patterson then added her own credit or debit card information into the system and had the customers’ payments “refunded” to her.
Patterson fraudulently refunded to herself a total of about $ 153,518 during the course of her scheme, the indictment says. On Oct. 4, 2023, although not on duty, Patterson tried to use the hotel's desk computer and a coworker's credentials to fraudulently refund herself an additional $61,998, the indictment says.
Each wire fraud charge is punishable by up to 20 years in prison, a $250,000 fine, or both.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The FBI investigated the case. Assistant U.S. Attorney Cort VanOstran is prosecuting the case.
Previously Convicted Felon Arrested for Possessing Loaded Firearm with Obliterated Serial NumberRead the Press Release
BOSTON – A Haverhill man was arrested yesterday for unlawfully possessing a firearm and ammunition.
Rashad Diggs, a/k/a “Summers,” 37, was indicted on one count of being a felon in possession of firearm and ammunition. Following an initial appearance in federal court in Boston yesterday, Diggs was detained pending a hearing scheduled for Jan. 22, 2024.
According to the indictment, in December 2022 in Revere, Diggs possessed a semiautomatic pistol with an obliterated serial number loaded with over 40 rounds of ammunition. Due to a prior felony conviction, Diggs is prohibited from possessing firearms or ammunition.
The charge of being a felon in possession of firearms and ammunition provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Malden Police Chief Glenn Cronin made the announcement today. Assistant U.S. Attorney Sarah Hoefle of the Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pottsville Man Sentenced to 18 Months’ Imprisonment for Hacking into the Snapchat Accounts of Dozens of Female Victims and Selling Their Private PhotographsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brandon B. Boyer, age 34, of Pottsville, Pennsylvania, was sentenced on January 18, 2024, by United States District Court Judge Malachy E. Mannion, to 18 months’ imprisonment, to be followed by a two-year term of supervised release, for the computer hacking offense of obtaining information from protected computers.
According to United States Attorney Gerard M. Karam, for a two-year period from approximately February 2020 to February 2022, Boyer unlawfully accessed the computers of dozens of adult female victims in order to search for and obtain nude photographs that he could then sell. Boyer accessed victims’ Snapchat accounts at the behest of “clients” who paid him to break into the accounts and obtain the images. Boyer admitted that he accomplished this, in part, through use of an app that allowed him to send text messages to victims posing as a Snapchat representative. Through a technique known as “phishing,” Boyer then coaxed the victims into changing their passwords and sending him the verification codes that were generated. This allowed him to then access the otherwise private sections of the accounts. Boyer acknowledged earning between $50,000 and $60,000 from this activity. Some of Boyer’s “clients” utilized the photographs that they obtained via Boyer to cyberstalk and to attempt to extort victims into providing additional photographs.
This case was investigated by the Federal Bureau of Investigation (FBI) – Philadelphia Division. Assistant U.S. Attorney Jeffery St John prosecuted the case.
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Pembroke Pines man sentenced to 216 months in federal prison for armed bank robbery and carjackingRead the Press Release
MIAMI – On Jan. 10, a Pembroke Pines man was sentenced to 216 months in federal prison after pleading guilty in November 2023 to two counts of armed bank robbery, one count of carjacking, and two counts of brandishing a firearm in furtherance of a crime of violence.
On March 29, 2023, Edmanuel Victoria, 29, of Pembroke Pines, walked into a bank in Broward County and presented a note to one of the bank tellers that read: “Give money gun,” while he lifted his shirt to show he was carrying a black pistol in his waistband. The bank teller gave Victoria about $2,650 in cash. Victoria took the money and fled.
On June 5, 2023, Victoria stole—at gunpoint—a black Nissan Altima from a man who was sitting in the driver’s seat while the car was parked. Then, on June 7, 2023, Victoria attempted a second bank robbery, when he stole—again, at gunpoint—a currency bag from an employee of an armored truck company that was about to begin a cash pickup from a bank in Broward County. Victoria drove the stolen Nissan Altima away from the bank. Soon after, Broward Sheriff’s Office deputies and FBI agents located and arrested Victoria.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Chief of Police Kipp Shimeno of the Pembroke Pines Police Department announced the sentence imposed by U.S. District Judge Rodney Smith.
FBI Miami’s Violent Crimes and Fugitive Task Force and the Pembroke Pines Police Department investigated the case with assistance from the Broward Sheriff’s Office. Assistant U.S. Attorney Jacob Koffsky prosecuted it. Assistant U.S. Attorney Jorge Delgado handled asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60125.
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Owner of Kansas Business Charged in Employment Tax SchemeRead the Press Release
A Missouri man made his initial appearance yesterday on an indictment returned by a federal grand jury in Kansas City, Kansas, in December 2023 charging him with willfully failing to pay over employment taxes owed to the IRS.
According to the indictment, from 2017 to 2018, Ephantus Mwangi, of Loch Lloyd, owned and operated True Payments Solutions Inc. (TPS), a corporation based in Kansas. Mwangi allegedly withheld federal income and Social Security and Medicare taxes from the wages of TPS employees for six quarters in 2017 and 2018, but did not pay those withholdings to the IRS, as required by law. In total, Mwangi allegedly caused a tax loss to the IRS of approximately $337,350.
If convicted, Mwangi faces a maximum penalty of five years in prison for each of the six employment tax counts. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Kate E. Brubacher for the District of Kansas made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney J. Parker Gochenour of the Justice Department’s Tax Division and Assistant U.S. Attorney Ryan Huschka for the District of Kansas are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Overland Park man sentenced for tax evasionRead the Press Release
KANSAS CITY, KAN. – A Kansas man was sentenced one year and one day in prison for lying on federal income tax returns.
According to court documents, Christopher S. Savell, 42, of Overland Park pleaded guilty to three counts of making and subscribing a false income tax return.
In his 2016 tax returns, Savell reported to the Internal Revenue Service (IRS) to have paid $458,711 in mortgage interest knowing he had actually paid $4,363 in mortgage interest. That same year he also reported to have paid $10,987 in real estate taxes when the actual amount was $5,663.
During 2017 tax returns, Savell declared $486,725 in mortgage interest payments when the actual amount was $24,108. He also claimed to have paid $68,980 in real estate taxes when he had paid $10,750.
Also in his 2017 tax returns, Savell indicated he paid $36,537 in state income taxes and $109,965 in federal income tax withholdings knowing he paid nothing in either.
In 2018 tax returns, Savell falsely stated he’d paid $71,400 in mortgage interest when the true amount was $20,605, and he said he paid $20,315 in real estate taxes after paying $10,315. He submitted documents claiming to have paid $34,033 in state income taxes and $81,252 in federal income tax withholdings. Savell didn’t pay state income taxes or federal income tax withholding in 2018.
“Taxpayers can’t make-up their own rules when it comes to paying their share of taxes, said Thomas F. Murdock, Special Agent in Charge, IRS Criminal Investigation (CI), St. Louis Field Office. “Mr. Savell intentionally filed false and fraudulent tax returns which makes him a tax cheat. CI will continue to aggressively pursue those who seek to steal from the American public by cheating the tax system.”
The IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Christopher Oakley prosecuted the case.
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Orlando Man Sentenced to More Than 12 Years for Attempting to Entice A 15-Year-Old to Engage in Sexual ActivityRead the Press Release
Ocala, FL – Senior United States District Judge Gregory A. Presnell has sentenced Victor Aguilar (32, Orlando) to 12 years and 6 months in federal prison for attempting to entice a minor to engage in sexual activity. Aguilar had pleaded guilty on October 13, 2023.
According to court documents, in May 2023, Aguilar responded to a social media posting from an undercover law enforcement officer posing as a 15-year-old child. Aguilar engaged in sexually oriented conversation, telling the undercover officer in detail what he planned to do with the minor. The two discussed meeting locations, including a mall in the Ocala area. A few hours later, Aguilar told the undercover officer he had arrived at the Ocala mall to meet with the minor. While Aguilar was waiting, deputies arrived and arrested Aguilar.
“This predator knowingly targeted a child to carry out his deviant behaviors, but our team of investigators were diligent in bringing him to justice,” said Homeland Security Investigations (HSI) Orlando Assistant Special Agent in Charge David Pezzutti. “HSI investigators, alongside our partners, the U.S. Secret Service, the Marion County Sheriff’s Office, the Ocala Police Department, the Citrus County Sheriff’s Office, and the Florida Department of Law Enforcement, have successfully removed another predator from the streets.”
This case was investigated by Homeland Security Investigations (HSI), the United States Secret Service, the Marion County Sheriff’s Office, the Ocala Police Department, the Citrus County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorneys Belkis H. Crockett and Tyrie K. Boyer.
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.
Orlando Man Sentenced to 6 Years in Federal Prison for Lying to the FBI in Connection with an International Terrorism InvestigationRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Moad Mohamed Benkabbou (23, Kissimmee) to six years in federal prison for making false statements to the Federal Bureau of Investigation (FBI) in an interview relating to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Benkabbou had pleaded guilty on May 5, 2023.
According to Benkabbou’s plea agreement and evidence previously admitted during a hearing, Benkabbou swore an oath to support ISIS in January 2020, made plans to travel to Turkey and Syria to fight for ISIS, sent money to support ISIS, purchased airplane tickets in August 2020 and January 2021 (later cancelled both tickets), and sent ISIS propaganda videos to others, including ISIS sponsored videos showing the executions (by gunshot and beheading) of American allies fighting against ISIS. Benkabbou also sent a photo of himself dressed as an ISIS fighter with the statement, “Hey Crusaders hey Jews die within your rage.” When interviewed on two occasions by FBI in relation to these activities, Benkabbou lied about his involvement with and support of ISIS.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Shawn P. Napier and Kara M. Wick.
Orange County Felon Pleads Guilty to Illegally Possessing A Firearm and AmmunitionRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Robert Lee Pringle (35, Orlando) has pleaded guilty to possessing a firearm as a convicted felon. Pringle faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court records, on May 3, 2022, law enforcement attempted to conduct a traffic stop on a stolen vehicle Pringle was driving. Rather than stopping, Pringle fled at a high rate of speed and later crashed into another vehicle. During a search of the stolen vehicle, officers located two firearms on the front passenger floorboard as well as a pistol magazine on the driver’s side floorboard. Also on the front passenger floorboard was a backpack containing paperwork with Pringle’s name, prescription bottles with Pringle’s name, suspected narcotics, digital scales, baggies, and 9mm bullets.
At the time, Pringle had multiple prior felony convictions, including carrying a concealed firearm, robbery, burglary of a conveyance, aggravated assault with a deadly weapon, grand theft third degree, and fleeing or attempting to elude a law enforcement officer at high speed or with wanton disregard. As a multi-convicted felon, Pringle is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orlando Police Department. It is being prosecuted by Assistant United States Attorney Megan Testerman.
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.
Omaha Woman Sentenced for Drug Trafficking CrimeRead the Press Release
Acting United States Attorney Susan Lehr announced that Nicole D. Hamzeh, 32 of Omaha, Nebraska was sentenced on January 19, 2024, in federal court in Omaha for possessing with intent to distribute methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Hamzeh to 54 months’ imprisonment. There is no parole in the federal system. After Hamzeh’s release from prison, she will begin a 5-year term of supervised release.
On December 11, 2021, law enforcement observed a 2018 Dodge Charger driving in Omaha without valid license plates. Officers initiated a valid traffic stop and made contact with Hamzeh, the driver of the vehicle, and her passenger, Randall Bates.
Officers smelled marijuana emanating from the vehicle and Hamzeh also reported to the officer that there was a fireball whiskey ‘shooter’ open in the vehicle. Hamzeh indicated that she had borrowed the vehicle from a friend and did not have the registration, but when officers ran a data check on the vehicle, the system showed that the vehicle was reported stolen. Hamzeh’s driver’s license was suspended, and Bates had an outstanding arrest warrant.
Officers arrested Hamzeh and located 184 grams of actual meth on her person. During a post-Miranda interview with law enforcement, Hamzeh admitted that she had been trafficking 6 pounds of meth during the prior 3 weeks—to include the 184 grams of actual meth seized.
This case was investigated by the Omaha Police Department.
New Orleans Man Pleads Guilty to Fentanyl DistributionRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that CARLOS GUILLEN (“GUILLEN”), age 38, a resident of New Orleans, pled guilty on January 18, 2024 to distribution of Fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B) and 841(b)(1)(C). In pleading guilty, the defendant faces up to twenty (20) years in prison, at least three years of supervised release, a fine of up to $1,000,000, and a mandatory special assessment fee of $100.
According to court documents, on or about August 16, 2023, in New Orleans, GUILLEN sold Fentanyl to undercover special agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Chief United States District Judge Nannette Jolivette Brown set sentencing in this matter for April 25, 2024.The U.S. Attorney’s Office would like to acknowledge the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives on this investigation. The prosecution of this case is being handled by Assistant United States Attorney Maria M. Carboni of the Financial Crimes Unit.
Muskogee Resident Pleads Guilty to Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Raheem Travon Walker, age 21, of Muskogee, Oklahoma, entered a guilty plea to Felon in Possession of Firearm and Ammunition.
The Indictment alleged that on October 28, 2023, Walker possessed a pistol and ammunition after having been convicted of a crime punishable by imprisonment exceeding one year.
The charges arose from an investigation by the Muskogee Police Department and the United States Marshal Service.
The Honorable Judge Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Walker remains in the custody of the United States Marshal Service pending a sentencing hearing.
Assistant United States Attorney Edith A. Singer represented the United States.
Montgomery Woman Sentenced for COVID-19 Era Paycheck Protection Program Loan FraudRead the Press Release
MONTGOMERY, ALABAMA – On January 16, 2024, a federal judge sentenced Zsa Zsa Bouvier Couch, 55, from Montgomery, Alabama, to 45 months in prison following her convictions for offenses related to fraudulent loans she received through the Paycheck Protection Program, announced Acting United States Attorney Jonathan S. Ross. In addition, the judge ordered that Couch serve three years of supervised release following her prison term. Federal inmates are not eligible for parole.
Previously, on September 27, 2023, a jury found Couch guilty on multiple counts of bank fraud, making false statements to a federally insured bank, and money laundering. Ultimately, Couch received a total of $609,687.47 of Paycheck Protection Program funds. Couch then distributed the money among herself, her husband, and other family members. Some of the money she used to purchase luxury vehicles.
The Paycheck Protection Program was authorized by the Coronavirus Aid Relief and Economic Security (CARES) Act, a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.
“Ms. Couch, like far too many others, took for her own benefit money intended to support individuals and businesses suffering the devastating effects of the pandemic,” stated Acting United States Attorney Ross. “My office is committed to identifying and prosecuting those who did or continue to do likewise.”
“The Coronavirus Aid Relief and Economic Security Act was devised to assist people struggling through difficult financial times due to the COVID-19 pandemic, and Ms. Couch took advantage of the program to purchase lavish gifts for herself and family members,” stated FBI Special Agent in Charge Paul Brown over the Mobile, Alabama Division. “The 45 months imprisonment should send a clear message to anyone thinking of committing similar acts of fraud.”
“This sentencing is the outcome of the commitment IRS Criminal Investigation, and our law enforcement partners have in continuing to pursue and hold accountable those who committed fraud on a program created to help businesses during the COVID-19 pandemic,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office.
The FBI, the Internal Revenue Service-Criminal Investigations, the Treasury Inspector General for Tax Administration, and the Small Business Administration Office of Inspector General, investigated this case. Assistant U.S. Attorneys J. Patrick Lamb and Joel Feil are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Mississippi Man Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JOHN SPOSATO, age 72, a resident of Kiln, Mississippi, pleaded guilty on January 18, 2024 before United States District Judge Eldon E. Fallon to conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 371 and 1344.
According to court documents, SPOSATO began serving a three-year period of supervised release after his release from prison as a result of his previous conviction on about August 9, 2022, in United States v. John Sposato, on about August 9, 2022. While on supervised release, SPOSATO claimed to be President of several companies, including Pegasus Consulting and Development, LLC (“Pegasus Consulting”). These companies performed no work and generated no income. SPOSATO opened a financial account at Keesler Federal Credit Union in the name of Pegasus Consulting and on March 27, 2023, attempted to deposit a $10,000.00 check he received from a co-conspirator, knowing it to be counterfeit. The check was purportedly drawn on the financial account of an all-volunteer, non-profit, tax-exempt organization that supported a Florida public library. SPOSATO’s attempted deposit placed Keesler at risk of both civil liability and financial loss. When asked about the check, SPOSATO falsely told a United States Probation Officer that the check was compensation for consulting work he performed, both directly and through an associate named “Jack Morgan”, for the non-profit entity. In fact, SPOSATO knew he was not entitled to the check and had never performed work for the non-profit.
SPOSATO faces up to five (5) years in prison, up to three (3) years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee. Sentencing before Judge Fallon has been scheduled for .
U.S. Attorney Evans praised the work of the United States Probation Office and Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Mexican National Sentenced to more than 12 Years’ Imprisonment for Methamphetamine ChargeRead the Press Release
United States Attorney Susan Lehr announced that Jose Arevale-Villalobos, 39, of Culiacan, Sinaloa, Mexico, was sentenced January 19, 2024, in federal court in Omaha, Nebraska, for conspiracy to distribute methamphetamine. United States District Court Judge Robert F. Rossiter sentenced Arevalo-Villalobos to 151 months’ imprisonment. After Arevalo-Villalobos’s release from prison, he will be deported to Mexico as he is not a United States citizen.
On May 19, 2022, Omaha Police officers executed a search warrant on a South Omaha residence after obtaining information that 5 pounds of meth was located inside. The search revealed one pound of meth hidden in a bedroom that officers determined had been occupied by Arevalo-Villalobos. Another four pounds of meth was found in a storage room and a gun was found in the basement.
On May 27, 2022, Arevalo-Villalobos was arrested in Omaha after being found in possession of a controlled substance. During a post-arrest interview, Arevalo-Villalobos was asked about the May 19, 2022, search warrant and admitted to handling the one-pound package of meth found in the room he had been staying in.
This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
Mexican National Sentenced to 8 Years’ Imprisonment for Methamphetamine ChargeRead the Press Release
United States Attorney Susan Lehr announced that Ivan Lima-Olivarria, 43, of Nayarit, Mexico, was sentenced January 19, 2024, in federal court in Omaha, Nebraska for conspiracy to distribute methamphetamine. United States District Court Judge Robert F. Rossiter sentenced Lima-Olivarria to 96 months’ imprisonment. Lima-Olivarria also forfeited any claim he had to $14,770 in U.S. currency seized during his arrest. After Lima-Olivarria’s release from prison, he will be deported to Mexico as he is not a United States citizen.
On November 23, 2022, law enforcement went to a Bellevue motel room after receiving information that a Hispanic male was staying there with more than 2 pounds of meth. Officers contacted Ivan Lima-Olivarria after knocking on the motel room door. Lima-Olivarria was found to be the sole occupant and gave consent to search the room. Officers located approximately 11.5lbs of meth and $14,770 in cash. It was determined that Lima-Olivarria was in the country illegally and had previously been deported for a drug offence. A search of cell phones found in the motel room revealed drug related content during the last year.
This case was investigated by the Bellevue Police Department and the Federal Bureau of Investigation.
Meth Trafficker Sentenced to Life in PrisonRead the Press Release
An Amarillo drug trafficker was sentenced yesterday to life in prison for trafficking methamphetamine, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
In September 2023, after five days of trial, a federal jury convicted Mandis Charles Barrow, 45, of one count of conspiracy to distribute or possess with intent to distribute 500 grams or more of methamphetamine, one count of distribution and possession with intent to distribute 500 grams or more of methamphetamine, and one count of possession with intent to distribute 500 grams or more of methamphetamine. He was sentenced Thursday by U.S. District Judge Matthew J. Kacsmaryk.
According to evidence presented at trial, on February 18, 2021 a traffic stop was conducted on a vehicle Mr. Barrow was driving. The officer conducting the traffic stop suspected there may be narcotics inside the vehicle and requested a canine officer. The canine alerted to the odor of narcotics coming from the vehicle. During a search of the vehicle, officers located $15,000 and a baggie of methamphetamine inside the glove box and a shoebox in the trunk that contained approximately 8.8 pounds of methamphetamine. Mr. Barrow was arrested following the search. While in custody, Mr. Barrows made phone calls to a family member requesting evidence be removed from Barrow's residence.
In October 2022, a search of a residence in Amarillo was conducted and approximately 108 grams of fentanyl, 853 grams of cocaine, and 2,944 grams of methamphetamine were located in the kitchen area. Mr. Barrow later admitted to dropping off the narcotics at that residence.
According to evidence presented at trial, during an interview Mr. Barrow admitted to being involved in the distribution of large amounts of controlled substances, including, methamphetamine, cocaine, and pills containing fentanyl.
During sentencing, these facts were discussed at length and Judge Kacsmaryk stated that the life sentence for Mr. Barrow was based on the defendant’s long and violent criminal history starting when the defendant was 18. The defendant’s first violent conviction, Aggravated Robbery, where the defendant robbed a man at gunpoint and forced the man into the man’s residence where Mandis took by force all of the man’s money (around $46). The defendant also had a prior conviction for assaulting a man by pulling him from a vehicle and beating him, even when unconscious. The defendant has two prior drug distribution convictions, one of those federal. Significantly, the Court stated that Mr. Barrow engaged in drug trafficking and violence his “whole adult life.”
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Anna Marie Bell prosecuted the case.
Metairie Man Pleads Guilty to Presenting Altered Postal Money OrderRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that JASON CAREY pled guilty on January 17, 2024, before United States District Judge Lance Africk, to presenting a materially altered postal money order. CAREY faces up to five (5) years imprisonment, a fine of up to $250,000, a term of supervised release of up to three (3) years, and a $100 mandatory special assessment fee.
According to court documents, beginning on or about November 4, 2020 and continuing until on or about November 20, 2020, CAREY executed a scheme to fraudulently obtain approximately $20,000 from Hancock Whitney Bank. CAREY did so by depositing altered United States Postal Money Orders into his minor daughter’s bank account at Hancock Whitney Bank and then withdrawing these same funds from the account before the fund transfers cleared.
The case was investigated by United States Postal Inspection Service agents and prosecuted by Assistant United States Attorneys Rachal Cassagne of the Narcotics Unit and Paul Hubbell of the General Crimes Unit.
Men Who Assaulted an ATF Agent SentencedRead the Press Release
Two men who assaulted an ATF agent and another individual during an undercover operation were sentenced today to a combined 39 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Decorian Lynndale Titus, 19, and Damon Gentry, 23, were charged via criminal complaint in May 2023 and indicted in June 2023. Mr. Titus and Mr. Gentry both pleaded guilty in September 2023 to one count each of assaulting certain officers, brandishing a firearm in relation to a crime of violence, and possession of a firearm by a convicted felon. They were sentenced today by U.S. District Judge Reed C. O’Connor to 324 months and 144 months, respectively, in federal prison.
According to court documents, on May 18, 2023, an undercover ATF agent met with Mr. Titus and Mr. Gentry to purchase marijuana and guns. During the meeting, the defendants pulled their guns on the ATF agent and demanded the agent’s firearm and money. Mr. Titus stole the agent’s gun and money and ordered him to lay on the ground and not get up. He also threatened to shoot the other individual.
Mr. Titus and Mr. Gentry ultimately left the agent and the other individual and fled. As they were fleeing, Mr. Titus pointed his guns (one in each hand) at plain-clothed (but marked) officers outside whereupon agents fired on Mr. Titus. He was hit, dropped one pistol, and fired a shot. Mr. Titus was arrested that day; Mr. Gentry got away, but was arrested later.
The Federal Bureau of Investigations, Bureau of Alcohol, Tobacco, Firearms, & Explosives, Texas Rangers, Fort Worth Police Department, and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.
Man sentenced in Kansas City drug ring tied to Mexican cartelRead the Press Release
KANSAS CITY, KAN. – A man was sentenced to 102 months in prison for his involvement in a Kansas City metro-based drug trafficking ring with ties to Mexico.
According to court documents, Edwar Salazar-Belleda, 34, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine.
Salazar-Belleda was part of an international drug trafficking ring operating with meth brought in from Mexico. The co-conspirators laundered illegal proceeds as wire payments destined for individuals in Mexico and California.
From August 2019 through May 2021, the Kansas Bureau of Investigation (KBI) and Homeland Security Investigations (HSI) led an undercover investigation which included multiple purchases of meth, heroin, and firearms. Romel Alvarado-Calderon, 27, of Kansas City, Kansas, was the head of the operation, and Salazar-Belleda acted as a broker.
In April 2021, Salazar-Belleda was arrested after a trash bag containing 7.57 kilograms of 98.6% pure meth was found in his hotel room. Law enforcement also located digital scales, meth, heroin, a stolen firearm, and ammunition in his suitcase.
Over the course of the conspiracy investigation, more than 150 kilograms of meth, more than 11 ounces of heroin, marijuana, and numerous firearms were either purchased or seized.
Romel Alvarado-Calderon, Victor Troches-Reyes, 42, Hervey Moreno-Gonzalez, 32, Jesus Vigil-Canales, 44, and Victor Pardo-Jimenez, 34, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine.
Juana Infante-Garcia, 36, Gabriela Garcia-Rojas, 28, and Sergio Galvez-Rodriguez, 34, pleaded guilty to one count of conspiracy to launder drug proceeds.
There are additional defendants who have cases pending in court.
The Kansas Bureau of Investigation and Homeland Security Investigation (HSI) investigated the case.
Assistant U.S. Attorneys Michelle McFarlane, David Zabel, and Sheri Catania prosecuted the case.
OCDETF Strike Force Cases
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the OCDETF Kansas City Metro Strike Force is to disrupt and dismantle major criminal organizations and subsidiary organizations, including criminal gangs, transnational drug cartels, racketeering organizations, and other groups engaged in illicit activities that present a threat to public safety and national security and are related to the illegal smuggling and trafficking of narcotics or other controlled substances, weapons, humans, or the illegal concealment or transfer of proceeds derived from such illicit activities in the Western District of Missouri and District of Kansas. The OCDETF Kansas City Metro Strike Force is comprised of agents and officers from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Kansas City, Missouri, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service (USMS), the United States Attorney’s Office for the District of Missouri (USAO-WDMO), the United States Attorney’s Office for the District of Kansas (USAO-KS), the Drug Enforcement Administration (DEA), the Internal Revenue Service/Criminal Investigation Division (IRS/CID), the United States Secret Service (USSS), and the United States Postal Inspection Service, and the prosecution is being led by the Office of the United States Attorney for the District of Kansas.
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Man Sentenced in Firearms and Drug Trafficking Conspiracy CaseRead the Press Release
Acting United States Attorney Susan Lehr announced that Rodolfo C. Falcon, 45, of Omaha, Nebraska, was sentenced January 19, 2024, in federal court in Omaha, Nebraska for his participation in a firearms conspiracy in the furtherance of drug trafficking. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Falcon to 24 months’ imprisonment. There is no parole in the federal system. After Falcon’s release from prison, he will begin a 3-year term of supervised release.
Rodolfo Falcon owned a house that was the central location for the distribution of marijuana, marijuana derivatives, and cocaine. Falcon rented that house out to several younger drug dealers including Kenneth Blair, Alexis Bernal-Lopez, and Keland Strong. The Federal Bureau of Investigation Safe Streets Task Force performed a search of the residence and recovered cocaine, marijuana, currency, drug paraphernalia, and several firearms. Falcon, who has a distinctive tattoo on his hand, was seen in photos posing with firearms. One of the firearms shown in the picture was recovered from the residence. Agents also located a stolen firearm and AR15 rifle.
At the time of the search, Kenneth Blair was in the basement of the residence along with two apparent narcotics customers. Drugs and cash were also recovered from that location. Keland Strong used an upstairs room that contained numerous firearms. Falcon lived on the main level of the home where agents recovered cash, cocaine. and personal identification documents. Evidence of significant marijuana distribution such as wrappers for large quantities of marijuana were also recovered. This, along with the text messages between the group members revealed that the home was being used as a main distribution hub and that Bethow, Bernal-Lopez, Strong, and Blair all worked together to sell drugs, particularly marijuana to ‘serves’ (their code word for narcotics purchasers) and would drive each other to sales and work together to get the right types of THC cartridges and marijuana to customers.
On September 28, 2023, Majok Bethow: pled guilty to firearms conspiracy in the furtherance of drug trafficking and was sentenced on January 11, 2024, to 24 months imprisonment to run concurrently with a federal case charging him with possessing a machinegun.
On September 28, 2023, Kenneth Blair pled guilty to firearms conspiracy and was sentenced December 21, 2023 to 21 months imprisonment.
On November 17, 2023, Keland Strong pled guilty to firearms conspiracy and possession of a firearm in furtherance of drug trafficking; sentencing is set for February 8, 2024.
On November 20, 2023, Alexis Bernal Lopez pled guilty to firearms conspiracy and possession of a firearm in furtherance of drug trafficking; sentencing is set for February 16, 2024.
This case was investigated by the Federal Bureau of Investigation.
Man Sentenced for Drug ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that Oscar Ulises Quiroz Ayon, 32 of Mexico was sentenced January 19, 2024, in federal court in Omaha, Nebraska, for his participation in a methamphetamine and fentanyl drug conspiracy. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Ayon to 33 months’ imprisonment. There is no parole in the federal system. After Ayon’s release from prison, he will begin a 2-year term of supervised release.
Beginning in August 2021 and continuing to November 4, 2021, Ayon agreed with others to distribute and possess with intent to distribute over 50 grams of meth actual and over 100 grams of fentanyl analogue.
Throughout the day on November 4, 2021, agents conducted surveillance on Ayon’s codefendant Colleen Wiand. That afternoon, Wiand drove to the Supermercado, located at 3548 Q Street, in Omaha, where she parked.
Shortly after, Ayon arrived in the parking lot, parking next to Wiand.. Ayon placed an item in Wiand’s car then both cars departed. Omaha Police Department officers conducted a traffic stop in Wiand’s car and recovered a box containing approximately 13.4 pounds of pills marked ‘M-30,’ suspected fentanyl in pill form. Wiand was then taken into custody.
Officers conducted a traffic stop on Ayon near 30th and Chandler Streets in Omaha. After receiving his Miranda warnings, Ayon admitted that approximately two months ago he arrived in Omaha from Sinaloa, Mexico for the specific purpose of receiving controlled substances.
The morning of November 4, 2021, Ayon admitted that he received a phone call from someone in Mexico who instructed him to go to the Casey’s located at 72nd and Grover Streets, in Omaha, to meet a white male who gave him a TV box. The same person in Mexico then told Ayon to meet a woman at the Supermercado located at 36th and Q and deliver the TV box.
The following codefendants have all previously pled guilty to the drug conspiracy and been sentenced: Wiand, Mayra Rendon, Darbelio Lorenzo-Genchi, Iris Gallardo-Salado, Samantha Cawyer, Giovana Cisneros and Emidio Becerra.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and
transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Omaha Police Department and Drug Enforcement Administration.
Malden Men Sentenced for Trafficking Fentanyl and MethamphetamineRead the Press Release
BOSTON – Two Malden men have been sentenced in federal court in Boston for trafficking fentanyl and methamphetamine disguised as Adderall, Xanax and oxycodone in and around the Malden area.
Matthew Ramos, 26, was sentenced yesterday by U.S. District Court Judge Denise J. Casper to 90 months in prison and four years of supervised release. In October 2023, Ramos pleaded guilty to one count of distribution of and possession with intent to distribute 50 grams or more of methamphetamine, 40 grams or more of fentanyl and other controlled substances.
On Dec. 1, 2023, co-defendant Igor Desouza, 27, was sentenced by Judge Casper to 10 years in prison and five years of supervised release. In August 2023, Desouza pleaded guilty to one count of distribution of and possession with intent to distribute 500 grams or more of methamphetamine, 40 grams or more of fentanyl, and other controlled substances.
A search of Ramos and Desouza’s shared residence on May 25, 2021 resulted in the recovery of a firearm, over 200 rounds of ammunition and from each of their bedrooms and kitchen and a large and diverse cache of drugs. The drugs included approximately two kilograms of methamphetamine pills pressed to look like Adderall or Xanax; approximately 150 grams of fentanyl pills (some mixed with xylazine) pressed to look like oxycodone and Percocet pills; MDMA; over 90 grams of cocaine and crack cocaine; varying amounts of oxycodone, etilozam, suboxone strips, and substances believed to be marijuana, LSD and mushrooms.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Special assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; the Malden Police Department; and the Middlesex District Attorney’s Office. Assistant U.S. Attorney Lindsey E. Weinstein of the Narcotics & Money Laundering Unit prosecuted the case.
Lowell Man Pleads Guilty to Gun TraffickingRead the Press Release
BOSTON – A Lowell man pleaded guilty today in federal court in Boston to firearms trafficking charges.
Isael Rodriguez, 29, pleaded guilty to one count of dealing in firearms without a license and one count of making false statements to acquire firearms from a licensed dealer. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for April 23, 2024. Rodriguez was indicted by a federal grand jury in March 2022.
Rodriguez purchased firearms from a licensed dealer, falsely claiming that he was purchasing them for himself and then resold the firearms for profit to individuals in Boston.
The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of making false statements to acquire firearms from a licensed dealer provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
First Assistant United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Boston Police Acting Commissioner Michael Cox; Lowell Superintendent of Police Gregory C. Hudon; Brookline Police Chief Jennifer M. Paster; and Brockton Police Chief Brenda Perez made the announcement today. Assistant U.S. Attorney John Dawley of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Lowell Gang Member Sentenced to 96 Months for Drug Trafficking and Money LaunderingRead the Press Release
BOSTON – A leader of a Lowell-based gang, One Family Clique (OFC), was sentenced yesterday in federal court in Boston for conspiring with fellow OFC gang members to traffic wholesale quantities of cocaine, and to launder millions of dollars in drug proceeds through casinos in Canada.
Virak Prum, a/k/a “Polo,” a/k/a “Capo,” a/k/a “Lips,” 37, was sentenced by U.S. Senior District Court Judge William G. Young to 96 months in prison, to be followed by three years of supervised release. In September 2023, Prum pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine and one count of money laundering conspiracy.
In August 2018, an investigation began into OFC in response to a dramatic spike in shootings and gang violence in Lowell. OFC is an alliance between several gangs in and around Lowell with ties to gangs in California and other states. In 2018 and 2019, at least 12 incidents of gunfire in the Lowell area are alleged to be attributable to gang-motivated hostilities between OCF and its rivals.
Since at least 2019, Prum and his co-conspirators used the U.S. Postal Service to receive shipments of illegal narcotics, and, in return, to ship cash proceeds to the sources of supply. Members of the conspiracy maintained stash houses in Lowell, which also served as venues for gang meetings and other events furthering the gang’s illegal activities. Over the course of the investigation, approximately 12 kilograms of methamphetamine; 2.4 kilograms of cocaine; 2.1 kilograms of MDMA; 513 grams of heroin; 169 grams of fentanyl; $177,591 in cash; and seven firearms were seized or purchased.
In May 2021, Prum led a money laundering operation in which he and his co-conspirators provided “protection” for a shipment from Europe that purportedly contained 8 million Euros in drug proceeds from black tar heroin sales. Specifically, Prum and his co-conspirators helped pack a shipment of money into a truck and escorted it from New York to New Hampshire.
Prum was charged with 14 others in June 2021. He is the final defendant in custody to plead guilty in the case. One defendant remains a fugitive.
Acting United States Attorney Joshua s. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Greg Hudon, Superintendent of the Lowell Police Department made the announcement today. Valuable assistance was provided by the DEA-San Jose Task Force as well as the Long Beach (Calif.) and Santa Clara (Calif.), Police Departments. Assistant U.S. Attorneys Timothy Moran and Fred Wyshak, III of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Long Island Woman Sentenced to 33 Months in Prison for Obstructing the Internal Revenue Service, Filing False Tax Returns and Structuring Cash DepositsRead the Press Release
Earlier today, in federal court in Central Islip, Lorraine Pilitz was sentenced by United States District Judge Joanna Seybert to 33 months’ imprisonment for illegally structuring financial transactions, corruptly obstructing the Internal Revenue Service and filing false tax returns. Pilitz was also ordered to pay $324,702.78 in restitution to the Internal Revenue Service and forfeited a commercial property in Lindenhurst, New York. Pilitz was convicted of the charges in November 2022 after a two-week trial.
Breon Peace, United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the sentence.
“For years Pilitz thought she could get away with hiding substantial amounts of cash and income, impeding the Internal Revenue Service, and cheating her employees, until a jury found her guilty on all counts. Today’s sentence sends a message to the defendant and others who place greed above following the law that this Office will vigorously prosecute those who commit tax fraud,” stated United States Attorney Peace.
“Lorraine Pilitz lined her pockets with money owed to the government by hiding hundreds of thousands of dollars and grossly underreporting her income with an ‘off-the-books’ payroll. IRS-CI New York worked closely with the Eastern District of New York on this case, and Pilitz has since been convicted by a jury of her peers. Today’s sentencing means she now faces the consequences of her self-serving criminal acts,” stated IRS-CI Special Agent-in-Charge Fattorusso.
As proven at trial, Pilitz owned and operated several automobile-related businesses on Long Island. Financial institutions are required to file a Currency Transaction Report (CTR) with the IRS for each transaction in excess of $10,000. Between 2011 and 2013, the defendant routinely structured cash deposits to avoid the required CTR filings – depositing cash amounts just under $10,000. As a result of Pilitz’s scheme, hundreds of thousands of dollars were concealed from the IRS. As part of the same scheme to conceal her income, Pilitz also diverted hundreds of thousands of dollars of business checks into her and her family’s personal bank accounts, maintained “off-the-books” payrolls, failed to file personal and corporate tax returns, and filed false tax returns that severely underreported her income.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Burton T. Ryan, Jr., Adam R. Toporovsky, Madeline O’Connor and Diane Leonardo are in charge of the prosecution with assistance from Paralegal Specialist Michael Compitello.
The Defendant:
LORRAINE PILITZ (also known as “Lorraine Christie” and “Lorraine Storms”)
Age: 65
Merrick, New YorkE.D.N.Y. Docket 17-CR-53 (S-2) (JS)
Long Beach Man Sentenced to Life in Prison for Bombing Aliso Viejo Spa in Attack that Killed His Ex-Girlfriend and Injured Two OthersRead the Press Release
LOS ANGELES – A Long Beach man was sentenced today to life plus an additional 30 years in federal prison for building and planting a package bomb that detonated inside an Aliso Viejo day spa in May 2018, killing his ex-girlfriend, severely injuring two spa clients, and causing significant damage to a commercial office building.
Stephen William Beal, 64, was sentenced by United States District Judge Josephine L. Staton, who said at today’s hearing, “The cold, calculated nature of this crime is chilling.”
At the conclusion of a four-week trial, a federal jury in July 2023 found Beal guilty of four felonies: use of a weapon of mass destruction resulting in death, malicious destruction of a building resulting in death, use of a destructive device during and in relation to a crime of violence, and possession of an unregistered destructive device.
Judge Staton sentenced Beal to life imprisonment on the first two counts, a consecutive 30-year prison sentence on the third count, and a 10-year concurrent sentence on the fourth count.
“Mr. Beal callously murdered a loving mother, maimed two other victims, and put at risk many others in the vicinity, including children and teachers at a nearby preschool,” said United States Attorney Martin Estrada. “Mr. Beal’s wanton disregard for the lives of others warranted the severe sentence that the court imposed, which should send a clear message that our community will not tolerate such acts of violence. We send our prayers to the victims and our heartfelt thanks to the first responders and investigators whose tireless work uncovered Mr. Beal’s dastardly crime.”
“In addition to the cruel and senseless murder of Ildiko Krajnyak, Stephen Beal severely injured two victims and terrorized the Aliso Viejo community and beyond,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “We are gratified that Beal will spend the rest of his life in prison where he will no longer be in a position to indiscriminately harm others, nor torment the survivors of his crime. This case brought together many who shared a commitment to finding the truth, including tenacious investigators at multiple agencies, forensic teams that sifted through and analyzed a massive debris field following the attack, and dedicated prosecutors. Today is the culmination of five years of collaboration, and a day to honor the victims.”
“It took extreme commitment and dedication by our personnel and federal partners to ensure justice was realized for the victims and their families, and I am grateful to see a conclusion for this horrific act of violence,” said Orange County Sheriff Don Barnes. “We must never forget Ms. Krajnyak’s family and the two surviving victims who will forever navigate life bearing the pain of that day. I hope today’s sentencing provides them some semblance of comfort.”
The bomb exploded at a commercial office building in Aliso Viejo at approximately 1:05 p.m. on May 15, 2018. The explosion instantly killed 48-year-old Ildiko Krajnyak – who owned Magyar Kozmetika, a day spa located in the office building – and permanently injured two of her clients: a mother and her daughter.
One of the surviving victims testified at trial that she saw Krajnyak standing behind her desk opening a cardboard box immediately before the explosion. The surviving victim pulled her mother from the rubble, and together they escaped the burning building through a blown-out wall. The survivors suffered second- and third-degree burns, and one lost an eye.
“There is no question that these injuries caused both excruciating pain and suffering,” prosecutors wrote in a sentencing memorandum.
During a search of Beal’s residence after the explosion, law enforcement found more than 130 pounds of explosive precursor chemicals and completed explosive mixtures, as well as electric matches and wires. Beal had years of experience building high-powered model rockets and homemade pyrotechnics, and laboratory testing determined that the explosive mixture Beal used in the bomb contained the same chemical he had at his home.
The FBI’s Evidence Response Team spent more than two weeks collecting and processing evidence from the scene of the bombing. The FBI recovered parts of a 9-volt battery and wire fragments that were embedded in the ceiling above the blast site. The wires used in the bomb’s fusing system were of the same unique type as electric matches and wires found at Beal’s home.
Beal purchased the remaining items he needed to complete the bomb just days before the bombing. Store security camera footage showed Beal using cash to buy a single 9-volt battery six days before the bombing. Beal also purchased three cardboard boxes that matched the size and shape of the box the surviving victim testified Krajnyak opened when the bomb exploded.
Beal kept tabs on Krajnyak before the bombing, checking her online schedule application and social media account. Security camera footage and cellular locational data showed that Beal, who had a key to the business, visited the spa on multiple occasions before the bombing while Krajnyak was out of the country. Beal left the package bomb for Krajnyak to open upon her return.
Judge Staton scheduled an April 12 hearing to determine how much restitution Beal should be ordered to pay victims of the bombing.
In a separate case, Beal is scheduled to be sentenced on February 23 after pleading guilty in November 2023 to wire fraud, Social Security fraud, and concealment of bankruptcy assets. Beal failed to report in a bankruptcy proceeding $350,000 he received from his late wife’s estate. He also schemed to fraudulently obtain insurance benefits and Social Security payments, resulting in his receipt of more than $1.3 million in fraudulent disability payments.
The FBI’s Joint Terrorism Task Force, the Orange County Sheriff’s Department, and the Orange County Fire Authority were the primary investigative agencies in this matter. Task Force members who participated in the investigation included IRS Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; the Los Angeles Police Department; the Irvine Police Department; the Anaheim Police Department; and the Orange County Fire Authority. The Los Angeles County Sheriff’s Department, the California Highway Patrol, the Naval Criminal Investigative Service, the Santa Ana Police Department, the Newport Beach Police Department, and the Orange County Intelligence Assessment Center provided assistance.
The Justice Department’s National Security Division’s Counterterrorism Section, the Justice Department’s Office of International Affairs, the FBI Legal Attaché in Thailand, the United States Department of State, and the U.S. Consulate in Vietnam provided valuable assistance. United States Customs and Border Protection and Homeland Security Investigations provided substantial assistance.
Assistant United States Attorneys Mark Takla, Annamartine Salick, Solomon Kim and Sarah Gerdes, all of the Terrorism and Export Crimes Section, prosecuted this case.
Lawrence Man Who Concealed More Than Two Kilos of Fentanyl Mixture Inside Cereal Box Sentenced to over Five Years in PrisonRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in federal court in Boston to his role in a fentanyl trafficking conspiracy.
Melvin Antonio Perez Medina, 33, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 64 months in prison, followed by three years of supervised release. In October 2023, Perez Medina pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue; two counts of distribution and possession with intent to distribute 40 grams or more of fentanyl; one count of distribution and possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue; and one count of possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue.
Perez Medina was indicted by a federal grand jury in November 2022 along with alleged co-conspirators Fraily Rodriguez Morillo and Manuel Fredis Guerrero Guzman.
According to court documents, between March 2022 and August 2022 Perez Medina and, allegedly, Morillo and Guzman, conspired to distribute fentanyl and a fentanyl analogue in and around the Lawrence, Woburn, Wilmington and Andover areas. As part of the conspiracy, Perez Medina distributed fentanyl and a fentanyl analogue on three separate occasions during the summer of 2022. At the time of Perez Medina’s arrest in August 2022, he was found in possession of nearly two kilograms of a mixture containing fentanyl and a fentanyl analogue concealed inside of a cereal box. In total, Perez Medina was responsible for distributing and attempting to distribute over 900 grams of fentanyl and over 2.5 kilograms of a fentanyl analogue.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance in the investigation was provided by the Massachusetts Department of Correction; the Norfolk County Sheriff’s Office; and the Boston, Concord, Hudson, Peabody, Reading, Waltham and Watertown Police Departments. Assistant U.S. Attorney Alathea Porter of the Criminal Division is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Las Vegas Resident Sentenced to Ten Years in Prison for Role in International Fraud Scheme Targeting Elderly VictimsRead the Press Release
PITTSBURGH, Pa. – Two residents of Las Vegas, Nevada, were sentenced in federal court for conspiracy to commit wire fraud, U.S. Attorney Eric G. Olshan announced today.
United States District Judge J. Nicholas Ranjan sentenced Roderick Feurtado, 57, to 120 months of imprisonment, followed by three years of supervised release, and Tarek Bouanane, 47, to 46 months of imprisonment, followed by three years of supervised release. The Court also ordered restitution totaling $258,520 to 16 victims.
Feurtado and Bouanane were convicted after a five-day trial in September 2023. Evidence at trial established that the defendants traveled to the Pittsburgh area in September 2021 to execute a scheme to defraud elderly victims of large amounts of cash. As part of the scheme, members of the conspiracy contacted numerous victims and falsely claimed that a family member of the victims, usually a grandchild, had been detained in connection with a legal proceeding and needed money for bail. The victims were directed to withdraw cash and provide it to a “courier” who would visit them at their homes. In reality, the victims’ family members had not been detained, and the “courier” was actually a member of the conspiracy. Tarek Bouanane acted as one of these “couriers,” while his co-conspirator Roderick Feurtado acted as the “safehouse,” providing directions to the couriers and collecting the money that had been obtained from the victims. During the trial, the jury heard recorded instructions from one of the defendants’ co-conspirators, directing that “couriers” park far away from the victims’ homes and wear masks to obscure their identities. The defendants kept a portion of the fraud proceeds for themselves, and they had plans to pass along the rest to other co-conspirators, including by converting it to cryptocurrency. During the investigation, the Pennsylvania State Police seized approximately $220,000 from the defendants.
Prior to imposing the sentences, Judge Ranjan emphasized that the harm caused to the victims by the offense was emotional, not just financial. As to Feurtado, the Court noted the defendant’s lack of remorse and his record of misrepresentations to the Court and the jury during his testimony at trial.Separately, three residents of Panama have been indicted by a federal grand jury for their alleged roles in masterminding the fraud scheme involving Bouanane and Feurtado, among other co-conspirators, which spanned multiple locations throughout the United States in addition to the Western District of Pennsylvania. Stefano Zanetti, Samuel David Ferrer Avila, and Cesar Javier Chourio Morante were arrested and extradited to Pittsburgh in August 2023, and their cases remain pending before Judge Ranjan. They are presumed innocent unless and until proven guilty.
“This office and our law enforcement partners remain committed to vigorously pursuing offenders who target elderly and other vulnerable citizens of Western Pennsylvania through sophisticated financial fraud schemes,” said U.S. Attorney Olshan. “The lengthy prison sentences imposed on Bouanane and Feurtado send a clear message that this conduct will not be tolerated and hopefully will provide some measure of justice and closure to the victims and their families.”
“Today’s sentencing of Roderick Feurtado and Tarek Bouanane is the culmination of an incredible partnership between HSI Pittsburgh, the Pennsylvania State Police, the Bethel Park Police Department and the U.S. Attorney’s Office for the Western District of Pennsylvania,” said Special Agent in Charge of HSI Philadelphia William S. Walker. “Investigations and prosecutions as complex as this one are only successful when teams are truly dedicated to protecting vulnerable members of our society. This type of interagency cooperation has proven to be law enforcement’s most effective tool in bringing these cases to prosecution. Holding accountable financial fraudsters while safeguarding our seniors from exploitation is a preeminent goal of our law enforcement professionals.”
Assistant United States Attorneys Jeffrey R. Bengel and Michael R. Ball prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Department of Homeland Security Investigations, Pennsylvania State Police, and Bethel Park Police Department for the investigation leading to the successful prosecution of Feurtado and Bouanane.
Anyone with information about allegations of elder fraud can report it by calling the National Elder Fraud Hotline at 1-833-FRAUD-11 or 833–372–8311. More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative at https://www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer- protection-branch. Elder fraud complaints may be filed with the FTC at https://reportfraud.ftc.gov/#/assistant?orgcode=USDOJEFH or at 877-FTC-HELP.Lame Deer man sentenced to 14 years in prison for shooting, killing man on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — A Lame Deer man was sentenced today to 14 years in prison, to be followed by three years of supervised release, after he admitted to shooting and killing another man in 2022 on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.
Terence Arturo Limberhand, 32, pleaded guilty in September 2023 to voluntary manslaughter.
U.S. District Judge Susan P. Watters presided. The court also ordered $8,000 restitution.
The government alleged in court documents that on the night of June 21, 2022, Limberhand was driving a four-wheeler and approached the victim, identified as John Doe, who was standing outside of a house near Lame Deer. Limberhand had a dispute with John Doe and an affiliate, leading Limberhand to believe that he and his family may be in danger. Limberhand shot John Doe multiple times before fleeing on the four-wheeler. John Doe was taken to the hospital where he was pronounced dead. Five days later, Limberhand went to a ranch outside of Lame Deer and told individuals there that he had been threatened. Bureau of Indian Affairs officers arrested Limberhand a short time later.
The U.S. Attorney’s Office prosecuted the case. The FBI conducted the investigation.
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Kansas Owner of Construction Firms Sentenced to Two Years in Prison for Employment Tax SchemeRead the Press Release
A Kansas woman was sentenced yesterday to two years in prison for willfully failing to account for and pay over employment taxes to the IRS in connection with three construction firms that she controlled.
According to court documents and statements made in court, Sheryl Clanton, of Bucyrus, owned and operated McCorkendale Construction Inc. (McCorkendale), a business specializing in setting up and maintaining underground infrastructure. As the president of McCorkendale from 2006 through 2011, Clanton was responsible for filing quarterly employment tax returns and collecting and paying to the IRS federal income, Social Security and Medicare taxes withheld from employees’ wages. For the first quarter of 2010 through the last quarter of 2011, however, Clanton did not pay to the IRS approximately $980,536 in employee withholdings.
In 2011, Clanton abandoned McCorkendale due to its outstanding tax debts and a bank mortgage foreclosure and started McClan Construction LLC (McClan). From the second quarter of 2012 through the fourth quarter of 2017, Clanton did not pay approximately $1.1 million of employment taxes or file on behalf of McClan quarterly payroll tax returns as required by law.
Clanton also operated a third underground construction business, NJ Trenching LLC, organized in late 2011. Between 2012 and 2015, Clanton again was responsible for not reporting or paying to the IRS nearly $100,000 of employment taxes relating to NJ Trenching.
In addition to the prison sentence, U.S. District Judge Daniel Crabtree for the District of Kansas ordered Clanton to serve three years of supervised release and to pay $2,223,174.41 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Robert Kemins and Dominick Giovanniello of the Justice Department’s Tax Division prosecuted the case.
KC Man Sentenced to 23 Years for Sexual Abuse of Child Victim, Distributing Video of Abuse OnlineRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for recording his sexual abuse of a seven-year-old victim and sharing a video of the abuse online.
Jeffrey A. Knight, 32, was sentenced by U.S. District Judge Howard F. Sachs to 23 years in federal prison without parole. The court also sentenced Knight to 15 years of supervised release following incarceration.
On Aug. 8, 2023, Knight pleaded guilty to one count of producing child pornography. Knight admitted that he used his iPhone to create an image and two video recordings of his sexual abuse of the child victim on Feb. 2, 2020. Knight then distributed one of those videos over the internet.
Knight also admitted that he sexually abused the child victim on multiple occasions until April 2022.
Knight has been involved in the trafficking and possession of child pornography since at least 2013. He routinely used messaging applications, such as Telegram, to send and receive child pornography from other individuals over the internet. He also paid money to join online groups that focused on the trafficking of child pornography, and engaged in the trafficking of child pornography with other members of those online groups.
Knight uploaded hundreds of images and videos of child pornography to his online storage accounts, including Google and Dropbox, from 2013 until his arrest on Feb. 3, 2023. Knight was in possession of hundreds of images and videos of child pornography at the time of his arrest.
This case was prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Man Sentenced to 15 Years for Attempted Abusive Sexual ContactRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for attempting to engage in abusive sexual contact with two court employees in the parking garage of the Charles Evans Whittaker United States Courthouse in Kansas City, Mo.
Shane Russell Coy, 23, was sentenced on Thursday, Jan. 19, by U.S. Chief District Judge Eric F. Melgren from the District of Kansas to 15 years and eight months in federal prison without parole. The court also sentenced Coy to 10 years of supervised release following incarceration.
On Nov. 1, 2023, Coy pleaded guilty to two counts of attempted abusive sexual contact.
Coy admitted that he unlawfully entered the courthouse underground parking garage on March 7, 2023. As Coy was walking outside by the parking garage exit, the overhead door to the garage exit began to open. As it opened, Coy stepped over the vehicle barricade into the garage exit and approached Victim 1, who was in the driver’s seat of her vehicle, stopped at the exit waiting for the overhead door to open and the vehicle barricade to go down so she could drive out of the garage. Because Victim 1 did not exit the garage soon enough, the exit overhead door and barricade closed, preventing her from driving out.
Coy pulled down his pants and began to masturbate, shouting at Victim 1 to get out of her car. Coy attempted to open a passenger door of the vehicle and punched the driver’s side window with a closed fist. Coy admitted that his actions in attempting to break into Victim 1’s vehicle were done with the specific intent to engage in sexual contact with Victim 1 by some level of force.
Coy then began to approach Victim 2, who had walked into the parking garage from the employee internal entryway door. Victim 2 was able to move away from Coy and position herself behind a vehicle. Coy admitted that he intended to engage in sexual contact with Victim 2 by some level of force.
Coy then ran to the employee entrance door and took an elevator up to the first floor, where he found himself within an enclosed vestibule leading out into the main lobby of the federal courthouse. After a brief period of time, law enforcement officers arrived and took Coy into custody without incident.
According to court documents, Coy was convicted of assault in 2020 after he sexually harassed and assaulted an attendant at a convenience store. Within months of being released from confinement for that conviction, Coy was arrested for the attempted sexual abuse of a postal worker while she was delivering mail at an apartment complex. Earlier on the same day, Coy had confronted a woman who was walking her dog. In all three instances, Coy exposed himself to the victims.
Coy has also been charged in Jackson County, Mo., with sexual misconduct and assault for a similar incident at another parking garage on Feb. 21, 2023. Additionally, according to court documents, on March 7, 2023, Coy exposed himself to two other women at the parking garage and chased one of the victims as she drove through the parking garage shortly before he walked over to the federal courthouse and engaged in the criminal conduct in this federal case.
This case was prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by the U.S. Marshals Service and the Kansas City, Mo., Police Department.
Justice Department Seeks to Shut Down Colorado Tax Return Preparer Filing False and Fraudulent Tax Returns for CustomersRead the Press Release
The United States filed a civil complaint today in the U.S. District Court for the District of Colorado against Denver-area tax return preparer Daniel Mattison. The complaint seeks to enjoin Mattison from owning or operating a tax return preparation business and from preparing federal income tax returns for others.
The complaint alleges that Mattison prepared thousands of federal income tax returns for paying customers between 2018 and 2023 through his business, DCM Financial Inc. Mattison allegedly advertises his business as the “one-stop solution” for people’s tax needs, promising to help his customers and future customers get their taxes done “right.” But the complaint alleges that Mattison fails on this promise by filing tax returns for customers that are riddled with errors, fabrications and fraudulent entries. Mattison allegedly claims false tax credits, fabricates business schedules, creates bogus income and changes tax return information without the customer’s consent or knowledge to reduce taxable income and inflate refunds improperly and illegally. As the complaint states, Mattison continued to prepare and file improper and fraudulent tax returns despite repeated warnings from the IRS about Mattison’s unlawful conduct, the assessment of civil penalties against him and the temporary suspension of his Electronic Filing Identification Number (EFIN) for failing to comply with filing and payment requirements.
By repeatedly understating his customers’ tax liabilities, the complaint alleges that the United States has been harmed by Mattison’s conduct resulting in the significant loss in tax revenue of an estimated $1.99 million in 2018 and 2019 alone.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
mattison_complaint_ecf.pdfJury Convicts Sioux City Man of Methamphetamine Trafficking ChargesRead the Press Release
Johnnie A. Cannon, age 38, from Sioux City, Iowa, formerly from Arkansas, was convicted of one count of conspiracy to distribute methamphetamine and three counts of distributing and aiding and abetting another in the distribution of methamphetamine. Cannon was convicted by a jury on January 18, 2024, after a three-day trial in federal court in Sioux City. The verdict was returned following close to four hours of jury deliberations.
The evidence at trial showed that Cannon worked with others to distribute at least seven pounds of methamphetamine from January 2021 through March 14, 2023. Evidence further showed that on at least three occasions in February and March 2023, Cannon supplied ¼, ½ and ½ pounds of methamphetamine to a co-conspirator, who then distributed the methamphetamine to an individual cooperating with law enforcement. On March 14, 2023, during a traffic stop, Cannon was found in possession of $3,000 in serialized, buy money used by law enforcement minutes before to buy drugs. In 2010, Cannon was also convicted in federal court in 2010 of conspiracy to distribute cocaine and possession with intent to distribute cocaine. Cannon was released from federal prison in 2019.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Cannon remains in custody of the United States Marshal pending sentencing. Cannon faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least ten years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-4023.
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January 2024 Federal Grand Jury B Indictments AnnouncedRead the Press Release
United States Attorney Clint Johnson today announced the results of the January 2024 Federal Grand Jury B Indictments.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Miguel Acuna-Segura. Unlawful Reentry of a Removed Alien. Acuna-Segura, 40, a Mexican national, is charged with unlawfully reentering the United States after having been removed in May 2011, at or near Laredo, Texas. U.S. Immigration and Custom’s Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 24-CR-020
Kenneth Alejandro Cruz-Bustillo. Alien Unlawfully in the United States in Possession of a Firearm. Cruz-Bustillo, 27, a Honduras national, is charged with knowing he was an illegal alien and unlawfully possessing a firearm and ammunition in Aug. 2023. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Shakema M. Onias is prosecuting the case. 24-CR-019
Miguel Angel Del Rio-De La Torre. Unlawful Reentry of a Removed Alien. Rio-De La Torre, 29, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Nov. 2018, at or near El Paso, Texas. U.S. Immigration and Custom’s Enforcement’s Enforcement and Removal Operations is the investigative agencies. Assistant U.S. Attorney Elliot P. Anderson is prosecuting the case. 24-CR-018
Roque Gaytan-Gonzalez. Unlawful Reentry of a Removed Alien. Gaytan-Gonzalez, 54, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Aug. 2023, at or near Laredo, Texas. U.S. Immigration and Custom’s Enforcement’s Enforcement and Removal Operations is the investigative agencies. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 24-CR-013
Jesus Alberto Monges Sanchez; Cassidy Stone. Drug Conspiracy; Possession of Methamphetamine with Intent to Distribute; Maintaining a Drug-Involved Premises. Monges Sanchez, 32, a Mexican national, is charged with conspiring to distribute and possession of methamphetamine from Oct. 2023 through Jan. 2024. Monges Sanchez, and Stone, 29, of Tulsa, are both charged with maintaining a residence for the purpose of distributing methamphetamine from Oct. 2023 through Jan. 2024. The Drug Enforcement Administration and the Oklahoma Bureau of Narcotics are the investigative agencies. Assistant U.S. Attorney David A. Nasar is prosecuting the case. 24-CR-024
Manuel Manrrique Oviedo-Ucles. Unlawful Reentry of a Removed Alien. Oviedo-Ucles, 39, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Aug. 2014, at or near Houston, Texas. U.S. Immigration and Custom’s Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Elliot P. Anderson is prosecuting the case. 24-CR-014
Rolando Palacios-Castorena. Unlawful Reentry of a Removed Alien. Palacios-Castorena, 36, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Jul. 2017, at or near Del Rio, Texas. U.S. Immigration and Custom’s Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 24-CR-015
Timothy Danel Ray Smeltzer. Assault of an Intimate/Dating Partner by Strangling and Suffocating in Indian Country; Assault Resulting in Serious Bodily Injury in Indian Country. Smeltzer, 35, of Nowata and member of Cherokee Nation Tribe, is charged with assaulting a former dating partner by strangling in Dec. 2023. Smeltzer is further charged with assault that resulted in serious bodily injury. The FBI is the investigative agency. Assistant U.S. Attorney Melissa Weems is prosecuting the case. 24-CR-016
Megan Elizabeth Statum. Possession of Methamphetamine with Intent to Distribute; Possession of Fentanyl with Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Statum, 32, of Tulsa, possessing methamphetamine and fentanyl with intent to distribute in Dec. 2023. She is further charged with possessing a firearm in furtherance of drug trafficking. The Drug Enforcement Administration and Sand Springs Police Department are the investigative agencies. Assistant U.S. Attorney Adam C. Bailey is prosecuting the case. 24-CR-017
Aaron Michael Thomas; Darren Doil Means. Introduction of a Misbranded Drug into Interstate Commerce (Counts 1 through 3); Drug Conspiracy (Count 4); Possession of Pregabalin with Intent to Distribute (Count 5); Maintaining a Drug-Involved Premises (Count 6); Smuggling Goods into the United States (Count 7) (superseding). Thomas, 41, and Means, 58, of Tulsa, are charged with the introduction of the misbranded drugs, gabapentin, xylazine and pregabalin into interstate commerce. The indictment charges that from 2021 through 2023, Thomas and Means conspired to distribute pregabalin, a Schedule V controlled substance, and maintained a residence for the purpose of distribution. Further the indictment alleges that in Oct. 2023, they knowingly possessed pregabalin with intent to distribute. They are both further charged with willfully importing pregabalin into the United States with false labeling in Aug. 2021. The Food & Drug Administration Office of Criminal Investigation and the U.S. Postal Inspection Service are investigating the case. Assistant U.S. Attorneys Nathan E. Michel and Aaron M. Jolly are prosecuting the case. 23-CR-333
Jamestown man arrested, charged in drug conspiracyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Curtis Snyder, 51, of Jamestown, NY, was arrested and charged by criminal complaint with conspiracy to possess with intent to distribute, and to distribute, heroin, fentanyl, and methamphetamine, which carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, state that according to the complaint, Snyder utilized Facebook to communicate and facilitate his drug trafficking activities with Rocco Beardsley. During the investigation, investigators recovered communications between Snyder and Beardsley during which Snyder offered to distribute drugs for Beardsley. Snyder and Beardsley also discussed heroin and fentanyl transactions. Beardsley is also charged in the drug conspiracy.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The complaint is the result of an investigation by the Jamestown Police Department, under the direction of Jamestown Police Chief Timothy Jackson, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Illegal possession of gun sends Billings felon to prisonRead the Press Release
BILLINGS — A Billings felon who admitted to illegally possessing a gun after he lied to law enforcement about his identity because of outstanding warrants was sentenced today to three years and one month in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Patrick Lee Tellez, 50, pleaded guilty in September 2023 to felon in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that on Dec. 30, 2022 in Billings, a Montana Highway Patrol officer conducted a traffic stop on a speeding car in which Tellez was a passenger. Tellez lied about his identity because he had outstanding warrants. Tellez refused the trooper’s order to get out of the vehicle and had to be tazed. When Tellez did get out of the car, the trooper saw a pistol that had been shoved into the passenger seat. Tellez had six prior felony convictions and was prohibited from possessing firearms.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case. The Montana Highway Patrol and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Holdenville Resident Sentenced for MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael David Patton, age 31, of Holdenville, Oklahoma, was sentenced to 210 months in prison for one count of Murder in Indian Country—Second Degree.
The charges arose from investigations by the Federal Bureau of Investigation, the Seminole Lighthorse Police Department, and the Seminole County Sheriff’s Office.
On February 22, 2023, Patton pleaded guilty to Murder in Indian Country—Second Degree. According to investigators, on October 19, 2022, Patton entered a Wewoka residence by force, and stabbed the sleeping victim over ten times. EMS responders transported the victim to an area hospital where he later died of his injuries. The crime occurred in Seminole County, within the boundaries of the Seminole Nation Reservation, in the Eastern District of Oklahoma.
“The diligence and fairness of the legal process has guaranteed Michael Patton will be held accountable for this senseless act of violence,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “I hope this well-deserved prison sentence will bring some measure of closure to the victim’s family. The FBI and our law enforcement partners will never stop working to ensure those who cause harm in our communities are brought to justice.”
“I commend the coordinated investigative efforts of local, tribal, and federal law enforcement in this case,” said United States Attorney Christopher J. Wilson. “Due to their efforts, federal prosecutors were able to pursue criminal charges against Michael Patton and he now faces the just consequences of his heinous act.”
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings. Patton will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Hilcorp San Juan resolves False Claims Act claims for oil and natural gas royalty underpayments to the United StatesRead the Press Release
HOUSTON – Hilcorp San Juan L.P., an oil and gas company with offices in Houston as well as Aztec, New Mexico, has agreed to resolve allegations it knowingly underpaid royalties owed on oil and natural gas produced from federal lands. The company has agreed to pay $34.6 million to resolve its False Claims Act and other liability for the conduct.
“Oil and gas production is a centerpiece of Houston and Texas’s economies, and for businesses to thrive it’s important that oil and gas companies play by the rules. That’s why my office will vigorously pursue those who deprive the United States of revenue,” said U.S. Attorney Alamdar S. Hamdani. “Royalties from oil and gas production on federal lands help support various public programs, and this settlement demonstrates my steadfast commitment to hold accountable those who fail to pay royalties in full accordance with the law.”
“U.S. taxpayers deserve a fair share of the revenues received by companies that extract natural resources from public lands” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department remains committed to ensuring that energy companies accurately report and pay to the United States the amount of royalties that are owed for their use of these resources.”
“The obligation to properly pay mineral royalties to the American public and other mineral owners is essential to the responsible development of minerals from lands under federal jurisdiction, and along with the Office of Natural Resources Revenue and the Office of the Solicitor, the Office of Inspector General (OIG) is committed to working with the Department of Justice to ensure that companies meet their legal responsibilities,” said Special Agent in Charge Ron Gonzales for the OIG’s Energy Investigations Unit.
Congress allows federal lands to be leased for the production of oil and natural gas in exchange for the payment of royalties on the value of the oil and gas produced. Lessees are required to pay monthly royalties to the federal government for any oil and gas removed or sold from the lease. Although lessees may make estimated royalty payments the month following production, they are required to pay actual royalties at the end of the month following the month in which the estimated payment is made. Lessees are also expected to use a specific transaction code for estimated payments, so that the government can identify circumstances in which a company has temporarily submitted royalties based on estimates. The settlement resolves allegations that, when reporting and paying royalties from August 2017 through December 2018, Hilcorp San Juan knowingly made payments to the federal government based on estimated volumes and prices without indicating that the payments were based on estimates and without subsequently making payments in the following month based on actual volumes and values. This resulted in the underpayment of royalties to the United States.
Hilcorp San Juan cooperated with the United States’ investigation by assisting in the determination of losses and received credit under the Department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Southern District of Texas, DOI’s Office of the Inspector General-Energy Investigations Unit, DOI’s Office of the Solicitor and DOI’s Office of Natural Resources Revenue. Assistant U.S. Attorney Kenneth Shaitelman handled the matter along with Trial Attorney Jonathan Thrope.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Hilcorp San Juan Resolves False Claims Act Claims for Oil and Natural Gas Royalty Underpayments to the United StatesRead the Press Release
Hilcorp San Juan L.P., an oil and gas company with offices in Aztec, New Mexico, and Houston, has agreed to resolve allegations that it knowingly underpaid royalties owed on oil and natural gas produced from federal lands. The company has agreed to pay $34.6 million to resolve its False Claims Act and other liability for the conduct.
“U.S. taxpayers deserve a fair share of the revenues received by companies that extract natural resources from public lands” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department remains committed to ensuring that energy companies accurately report and pay to the United States the amount of royalties that are owed for their use of these resources.”
“Oil and gas production is a centerpiece of Houston and Texas’s economies, and for businesses to thrive it’s important that oil and gas companies play by the rules. That’s why my office will vigorously pursue those who deprive the United States of revenue,” said U.S. Attorney for the Southern District of Texas. “Royalties from oil and gas production on federal lands help support various public programs, and this settlement demonstrates my steadfast commitment to hold accountable those who fail to pay royalties in full accordance with the law.”
“The obligation to properly pay mineral royalties to the American public and other mineral owners is essential to the responsible development of minerals from lands under Federal jurisdiction, and along with the Office of Natural Resources Revenue and the Office of the Solicitor, the Office of Inspector General is committed to working with the Justice Department to ensure that companies meet their legal responsibilities,” said Special Agent in Charge Ron Gonzales of the Department of the Interior Office of Inspector General’s (DOI-OIG) Energy Investigations Unit.
Congress allows federal lands to be leased for the production of oil and natural gas in exchange for the payment of royalties on the value of the oil and gas produced. Lessees are required to pay monthly royalties to the federal government for any oil and gas removed or sold from the lease. Although lessees may make estimated royalty payments the month following production, they are required to pay actual royalties at the end of the month following the month in which the estimated payment is made. Lessees are also expected to use a specific transaction code for estimated payments, so that the government can identify circumstances in which a company has temporarily submitted royalties based on estimates. The settlement resolves allegations that, when reporting and paying royalties from August 2017 through December 2018, Hilcorp San Juan knowingly made payments to the federal government based on estimated volumes and prices without indicating that the payments were based on estimates and without subsequently making payments in the following month based on actual volumes and values, resulting in the underpayment of royalties to the United States.
Hilcorp San Juan cooperated with the United States’ investigation by assisting in the determination of losses and received credit under the department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; U.S. Attorney’s Office for the Southern District of Texas; and DOI-OIG’s Energy Investigations Unit, Office of the Solicitor, and Office of Natural Resources Revenue.
Trial Attorney Jonathan Thrope of the Civil Division and Assistant U.S. Attorney Kenneth Shaitelman for the Southern District of Texas handled the case.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Settlement