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18 January 2024
Georgia Owner of Long-Term Care Facilities Sentenced to Two Years in Prison for Attempting to Obstruct IRSRead the Press Release
A Georgia man was sentenced today to two years in prison for obstructing the IRS in its efforts to collect employment taxes.
According to court documents and statements made in court, from at least 2003, Douglas K. Mittleider, of Adairsville, operated long-term care facilities throughout the United States and was responsible for paying the IRS the federal income and Social Security and Medicare taxes withheld from employees’ wages. In June 2004, the IRS assessed against him personally the employment taxes Mittleider had not paid—also known as the Trust Fund Recovery Penalty. Beginning in at least November 2011, Mittleider took multiple steps to conceal business funds and impede the IRS’s ability to collect his outstanding tax liability. Among other things, Mittleider directed the commingling of funds among businesses he controlled and used funds for purposes other than to pay the IRS. Mittleider also caused the creation of new operating companies and bank accounts to make it more difficult for the IRS to locate assets and levy accounts. In total, Mittleider’s conduct caused a tax loss to the IRS of more than $17 million.
In addition to the term of imprisonment, U.S. District Judge Thomas W. Thrash Jr. for the Northern District of Georgia ordered Mittleider to serve one year of supervised release and to pay $17,080,566 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.
Senior Litigation Counsel Sean Beaty and Trial Attorneys Ashley Stein and Andres Chinchilla of the Justice Department’s Tax Division prosecuted the case.
Gainesville fentanyl dealer sentenced to nearly 20 years in federal prisonRead the Press Release
GAINESVILLE, Ga. – Lyedrekus Bailey, a multi-convicted felon who trafficked cocaine, methamphetamine, heroin, and fentanyl in the Gainesville, Georgia area for approximately two decades, has been sentenced to federal prison for nearly 20 years.
“Drug dealers like Bailey act in callous disregard of the grave threat to life that results from their actions,” said U.S. Attorney Ryan K. Buchanan. “Fentanyl and heroin trafficking is causing untimely deaths in and devastation to our communities. Bailey’s significant sentence should serve as a warning to others that our office is determined to expand our efforts, working together with federal, state, and local law enforcement partners, to prosecute purveyors of illicit drugs like Bailey.”
“This case serves as a strong reminder of our commitment to working with local, state, and federal partners to remove deadly poisons, like fentanyl, off our streets,” said Chris Hosey, Director, Georgia Bureau of Investigation. “The GBI will continue our work to make an impact on the current drug distribution crimes in Hall County and all of Georgia to promote a safer place for productive citizens.”
“Those who distribute fentanyl and other deadly drugs create serious risks to our communities. DEA will use any resource necessary to remove these dangerous drug traffickers from our streets,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
“Often, people view drug crimes as victimless; however, this is never the case, as illegal drugs, such as heroin and fentanyl, destroy our youth and disrupt lives,” said Hall County Sheriff Gerald Couch. “While our agency has made numerous state felony drug cases against the offender; he always seemed to receive probation, time served or a minimal sentence. It has taken a partnership with federal authorities for this criminal to finally face a true sentence where he will be removed from the community he has preyed upon and profited from for years.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Lyedrekus Bailey sold fentanyl-laced heroin to an undercover GBI agent on five occasions between October 2020 and February 2021. All of the transactions were audio and video recorded. On one occasion, when he could not deliver the drugs himself, Bailey directed the undercover agent to a house in Gainesville that he operated as a distribution hub. Later, during a March 2021 traffic stop of a car Bailey was driving, a Hall County, Georgia deputy sheriff recovered approximately four ounces of heroin Bailey had hidden in clothing worn by his passenger.
Bailey was convicted of multiple drug trafficking crimes dating back to 2005. While on probation and parole for these offenses, he continued to commit crimes, such as drug trafficking, evidence tampering, and obstruction of law enforcement.
On January 12, 2024, Lyedrekus Onetaye Bailey, also known as “Lala,” was sentenced by U.S. District Judge Steve C. Jones to 19 years, seven months in prison to be followed by seven years of supervised release. Bailey was convicted of conspiring to distribute controlled substances, namely fentanyl and heroin, after he pleaded guilty on October 6, 2023.
The case was investigated by the Georgia Bureau of Investigation Appalachian Regional Drug Enforcement Office, Atlanta-Carolinas High Intensity Drug Trafficking Areas Program, and the Hall County Sheriff’s Office, with valuable assistance from the Drug Enforcement Administration, Federal Bureau of Investigation, Gainesville Police Department, and Georgia Department of Corrections.
Assistant U.S. Attorneys Theodore S. Hertzberg and Noah R. Schechtman 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fort Atkinson Home Improvement Contractor and His Wife Sentenced to Prison for Fraud and Money LaunderingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Tyler Hansen, 52, Fort Atkinson, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 7 years in federal prison for wire fraud and money laundering. His wife, Jennifer Hansen, 43, was sentenced by Judge Conley to 33 months in prison for money laundering. The Hansens pleaded guilty to these charges on October 4, 2023.
Between October 2020 and September 2022, Tyler Hansen operated a home improvement business based in Dane County and Jefferson County. The business operated under multiple names, including Weathersealed Wisconsin and EcoView Windows of South-Central Wisconsin. Hansen entered into contracts for home improvement projects with customers throughout Wisconsin, knowing that he did not intend to order supplies for the jobs or otherwise start the projects. The contracts were for various home improvement projects, including windows, sunrooms, bathrooms, roofs, and doors. When contracts for projects were signed, Hansen required that customers pay 50% of the total contract price as a down payment. Rather than use the money from customer down payments to pay project related expenses, Hansen used the money for personal expenses. In total, the Hansens stole over $800,000 from over 100 victims across Wisconsin during the fraud scheme.
Hansen, together with his wife, also engaged in money laundering. The Hansens used multiple financial transactions to conceal and disguise the true nature of the funds in their bank accounts and to make it more difficult for clients to receive refunds of their down payments. They deposited down payment checks from customers into multiple business bank accounts then transferred the funds to multiple personal accounts.
At the sentencing hearing, Judge Conley called the Hansens’ actions “horrific” because they targeted elderly and vulnerable people and resulted in substantial financial losses. Judge Conley also explained that while both the Hansens lied to victims, Tyler Hansen deserved a longer sentence because he was the driving force behind the scheme and had a prior criminal history.
In order to determine the appropriate amount of restitution owed to the victims in the case, Judge Conley scheduled a hearing for March 15, 2024, at 1:00 pm.
The charges against the Hansens were the result of an investigation led by the Federal Bureau of Investigation, the Internal Revenue Service, the Wisconsin Department of Agriculture, Trade and Consumer Protection, the Columbia County Sheriff’s Office, and the Walworth County Sheriff’s Office, with the assistance of law enforcement officers and district attorneys’ offices in the following counties in Wisconsin: Richland, Vernon, Grant, Dane, Fond Du Lac, Green Lake, Jefferson, Vilas, Walworth, Waukesha, Iowa, Kenosha, Adams, Columbia, Green, Monroe, Rock, Sauk, Winnebago, Sheboygan, Dodge, and Brown. Assistant U.S. Attorney Aaron Wegner handled the prosecution.
Former USPS mail carrier arrested, charged with stealing checks from mailRead the Press Release
ANCHORAGE, Alaska – A former Anchorage USPS mail carrier was arrested yesterday in Missouri after a federal grand jury in Alaska returned an indictment in December charging him with fraud and theft for allegedly stealing checks from the mail for personal gain.
According to court documents, Nha Xiong, 25, altered bank checks, typically with Whiteout, and wrote his name on the checks, making it appear as if the checks were made out to him. Xiong would then deposit the altered checks into his bank account.
From November to December 2021, the defendant deposited six stolen checks from Northrim Bank, Bank of America, KeyBank and Mt. McKinley Bank into his bank account, totaling over $39,000.
Xiong is charged with one count bank fraud, in violation of 18 U.S.C. §1344(2), and one count theft of mail by a postal employee, in violation of 18 U.S.C. §1709. The defendant will make his initial court appearance on a later date before the U.S. District Court for the District of Alaska. If convicted, Xiong faces potential fines and up to 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska, Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service, Seattle Division and Executive Special Agent in Charge Kenneth Bulle of the U.S. Postal Service Office of Inspector General Western-Pacific Area Field Office made the announcement.
The U.S. Postal Inspection Service and the U.S. Postal Service Office of Inspector General are investigating the case.
Assistant U.S. Attorneys Karen Vandergaw and Amy Miller are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former State Contractor Sentenced for Stealing Unemployment Insurance BenefitsRead the Press Release
DETROIT – A Detroit resident was sentenced today for her role in a scheme to steal unemployment assistance funds, announced United States Attorney Dawn N. Ison. Autumn Mims, 31, was sentenced to 5 years and 5 months in prison after having pleaded guilty to engaging in aggravated identity theft and conspiring to engage in wire fraud. Co-defendant William Haynes, 27, will be sentenced next month.
Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Detroit Field Division; Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor-Office of Inspector General; and Julia Dale, Director of the State of Michigan Unemployment Insurance Agency
Mims was sentenced by United States District Judge Mark A. Goldsmith.
Mims was a contract employee for the State of Michigan Unemployment Insurance Agency (MUIA), working as an Unemployment Insurance Examiner. Her duties included reviewing, processing, and verifying the legitimacy of unemployment insurance claims.
Mims and Haynes admitted to conspiring together to obtain illegitimate uninsurance benefits issued in the names of third parties.
According to court records, shortly after Mims began working with the Michigan Unemployment Insurance Agency in August 2020, she began using her insider access to fraudulently process claims in the names of third parties without their knowledge or authorization. As part of the scheme, Mims and/or Haynes (1) altered direct deposit information for third-party unemployment insurance assistance; (2) accessed third-party unemployment insurance assistance claim information without authorization; (3) completed false and fraudulent certifications for third-party unemployment insurance assistance benefits; (4) opened unauthorized bank accounts in the names of third parties; (5) conducted cash withdrawals of unemployment insurance assistance issued in the names of third parties; and (6) conducted financial transactions utilizing unemployment insurance assistance funds issued in the names of third parties.
Mims also admitted that while she was working with the MUIA and executing her fraud, she was also fraudulently obtaining unemployment insurance benefits for herself by falsely claiming that she was unemployed.
Mims was also ordered to pay $583,409 in restitution.
United States Attorney Ison stated: “We remain committed to prosecuting those who choose to enrich themselves by stealing government funds earmarked for those members of our community who are truly in need.”
“The defendant’s decision to conspire in order to obtain unlawful uninsurance benefits for personal profit while businesses and families were struggling during the COVID-19 pandemic is unconscionable,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “Further, Ms. Mims’ actions were a direct betrayal of the public trust granted to her as a contract Unemployment Insurance Examiner for the State of Michigan. Providing false information and using stolen identities to fraudulently gain access to relief funds is a theft of taxpayer money. The FBI remains committed to working with our network of law enforcement partners to investigate and hold those accountable who seek to personally profit and defraud government assistance programs.”
"Autumn Mims, a former contract employee for the State of Michigan Unemployment Insurance Agency (MUIA), conspired with William Haynes to defraud the state of Michigan and the Pandemic Unemployment Assistance program. Mims abused her access to MUIA systems to fraudulently process unemployment insurance (UI) claims that Haynes had fraudulently certified, the proceeds of which were deposited into bank accounts that they controlled,” stated Special Agent-in-Charge Irene Lindow, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. “We and our law enforcement partners are committed to identifying and prosecuting the criminals who took advantage of the COVID-19 pandemic by fraudulently obtaining pandemic UI benefits using stolen identities.”
“Autumn Mims’ criminal scheme tarnished all the critical and tireless work that staff at the Michigan Unemployment Insurance Agency performed during a global pandemic that hit Michigan hard. She does not by any stretch reflect the outstanding work habits of UIA’s professional employees, who abide by strict ethics and security clearance policies,” said MUIA Director Julia Dale. “I am proud of the dedication demonstrated every day in service to their fellow Michiganders and employers. UIA will continue to work with law enforcement at the local, state, and federal level to ensure that bad actors are brought to justice.”
The case was prosecuted by Assistant United States Attorney Andrew J. Yahkind. The investigation was conducted jointly by the Department of Labor, Office of Inspector General, Federal Bureau of Investigation’s Detroit Area Public Corruption Task Force, and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity.
Former Sharon Resident Sentenced for Conspiring to Distribute FentanylRead the Press Release
PITTSBURGH, Pa. – A former resident of Sharon, Pennsylvania, was sentenced on January 17, 2024, to 27 months in federal prison for conspiring to distribute fentanyl, United States Attorney Eric G. Olshan announced today.
James West, 48, was sentenced by United States District Judge Cathy Bissoon. In pleading guilty in this case last year, West admitted to conspiring to distribute at least four grams of fentanyl between 2020 and 2021 in Mercer County. Judge Bissoon ordered West to serve three years of supervised release upon release from prison.
Assistant United States Attorneys Benjamin C. Dobkin and Craig W. Haller prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, the Hermitage Police Department, and the Farrell Police Department for the investigation leading to the successful prosecution of West.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Rochester mail carrier pleads guilty to theft of mailRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Marlene Cruz, 40, of Rochester, NY, pleaded guilty to theft of mail matter by officer or employee, before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that in January 2022, the U.S. Postal Service (USPS) received complaints from individuals stating that their mail had been tampered with in late 2021. Subsequent investigation determined that Cruz, a full-time Mail Carrier, worked the mail route involving the complaints. Further investigation determined that between January 2022, and November 2023, Cruz routinely opened envelopes and parcels, removing items such as ticket stubs, documents, cash, lottery tickets, and gift cards, on dozens of occasions.
In May and November 2023, investigators conducted mail integrity tests, placing greeting cards containing cash and gift cards in the mail to be delivered by Cruz. On November 2, 2023, at the end of her shift, investigators detained Cruz and executed a warrant for her person and personal belongings. During the search, they recovered a gift card from one of the mail integrity test greeting cards inside Cruz’ personal duffle bag.
The plea is the result of an investigation by the U.S. Postal Service Office of Inspector General, under the direction of Matthew Modafferi, Special Agent-in-Charge Northeast Field Office.
Sentencing is scheduled for May 9, 2023, at 9:15 a.m. before Judge Siragusa.
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Former Pharmacy President Sentenced to Three Years in Prison for $32 Million Health Care Kickback SchemeRead the Press Release
NEWARK, N.J. – A former president of a pharmacy business was sentenced today to 36 months in prison for his role in a health care kickback conspiracy involving prescriptions for Medicare and TRICARE beneficiaries, Attorney for the United States Vikas Khanna announced today.
Elan Yaish, 54, of Israel, previously pleaded guilty on Aug. 16, 2023, before U.S. District Judge Esther Salas to an information charging him with conspiracy to violate the Federal Anti-Kickback statute. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From September 2017 to around December 2020, Yaish participated in operating pharmacies, including Apogee Bio-Pharm LLC, in Edison, New Jersey. Yaish and others agreed to engage in a scheme to pay marketing companies to direct prescriptions for expensive medications to the pharmacies.
The marketing companies identified Medicare and TRICARE beneficiaries to target for expensive drugs and contacted the beneficiaries by telephone to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, and migraine medication. The marketing companies then transmitted recordings of telephone calls with the beneficiaries, together with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. The marketers paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions. The marketing companies then directed the prescriptions to pharmacies, including Apogee, with which they had kickback arrangements. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare and TRICARE. The pharmacies, including Apogee, then paid a portion of each reimbursement to the marketing companies as a kickback. As a result of the scheme, Yaish and his conspirators caused a loss to Medicare and other federal health care benefit programs of over $32 million.
In addition to the prison term, Judge Salas sentenced Yaish to three years of supervised release and ordered restitution of $32 million.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Brian J. Solecki, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit, in Newark.
Former Pfizer Employee Convicted at Trial of Insider TradingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against AMIT DAGAR for insider trading and conspiracy to commit insider trading. The defendant was found guilty following a two-week trial before U.S. District Judge Andrew L. Carter.
U.S. Attorney Damian Williams said: “As the jury’s swift verdict shows, the proof at trial was overwhelming that Amit Dagar stole information about Paxlovid from his employer, Pfizer, and used that illegal edge to profit in the stock market. Combatting the corruption of our financial markets continues to be a top priority of this Office. Would-be insider traders tempted by the prospect of easy money should know that the Southern District of New York is watching, we’ll catch you, and we’ll make sure you pay the price for violating the law.”
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:
In November 2021, DAGAR participated in an insider trading scheme to reap illicit profits from options trading based on inside information about the results of clinical trials of Paxlovid, a medicine used to treat COVID-19. DAGAR was an employee of Pfizer Inc. (“Pfizer”) and assisted in managing the data analysis in certain clinical drug trials.
On November 4, 2021, DAGAR learned that a Pfizer trial of the drug Paxlovid, a medicine designed to treat mild to severe COVID‑19 infection, had produced positive results. The results were confidential and meant to remain so until Pfizer publicized them on November 5, 2021.
Later that same day, and while the results remained confidential, DAGAR purchased short-dated, out-of-the-money Pfizer call options that expired days and weeks later. DAGAR also tipped a close friend, who also purchased short-dated, out-of-the-money Pfizer call options.
The following day, on November 5, 2021, Pfizer publicly released results of its Paxlovid study prior to the market opening. That same day, following the publication of the positive results, Pfizer’s stock price increased substantially, opening — and eventually closing — more than 10% higher than the prior day’s closing price. In the following weeks, DAGAR sold his Pfizer call options for profits of more than $270,000.
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DAGAR, 44, of Hillsborough, New Jersey, was convicted of one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action, for its assistance and cooperation in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Alex Rossmiller and Justin V. Rodriguez are in charge of the prosecution, with assistance from Paralegal Specialists Madeline Sonderby and Anna Gamboa.
Former Mayor of Plum Springs, Kentucky Pleads Guilty to Wire FraudRead the Press Release
Bowling Green, KY – Today, Shedrick Johnson of Bowling Green plead guilty to an information filed by the United States Attorney on January 2, 2024, charging him with wire fraud.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.
According to the information, Shedrick Johnson, 45, was charged with devising a wire fraud scheme beginning on March 23, 2020, and continuing to November 30, 2022, in which he exceeded his authorized access by withdrawing funds belonging to Plum Springs, which is in Warren County, and utilizing for his personal benefit and conducting unauthorized transactions with the Plum Springs debit card with the total amount of loss being approximately $38,168.96.
On January 18, 2024, Johnson made an initial court appearance before a U.S. District Court Judge in the United States District Court for the Western District of Kentucky, and he entered a guilty plea in which the parties agree to recommend 5 years of probation. He faces a maximum sentence of 20 years in prison. Sentencing is set for April 25, 2024, at 10:30 a.m. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the FBI Bowling Green Post of Duty Office.
Assistant U.S. Attorney Madison Sewell, of the U.S. Attorney’s Bowling Green Branch Office, is prosecuting this case.
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Former Maryland Tax Preparer Pleads Guilty in False Return SchemeRead the Press Release
A Minnesota woman, who previously ran a tax preparation business in Maryland, pleaded guilty today to aiding in the preparation of false tax returns.
According to court documents and statements made in court, Kymberly Starr owned and operated The Tax Lady, also known as 5 Starr Business Solutions, a tax preparation business in Maryland. From 2013 to at least 2018, Starr inflated her clients’ tax refunds by preparing and submitting to the IRS false tax returns that claimed fraudulent tax deductions and fictitious business profits and losses. Starr’s conduct resulted in a loss to the IRS of at least $400,000.
Additionally, in 2020 and 2021, Starr obtained over $83,000 in COVID-related Paycheck Protection Program (PPP) loans by submitting fabricated IRS forms containing purported business income from bogus businesses. Starr also filed a false claim, which included fabricated federal tax forms, for unemployment insurance with the Maryland Department of Labor from which she received over $55,000.
Starr is scheduled to be sentenced on April 26 and faces a maximum penalty of three years in prison. She also faces a period of supervised release, restitution and monetary penalties. U.S. District Judge Theodore D. Chuang for the District of Maryland 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 made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Shawn Noud and Ezra Spiro of the Justice Department’s Tax Division are prosecuting the case.
Former Florida Keys Resident Detained Pending Trial for Distributing Child PornographyRead the Press Release
MIAMI – On Jan. 16, Eric Edward Cadogan, a/k/a “livelife4fun69,” 39, of La Crosse, Wisconsin, formerly of Marathon, Florida, was arraigned and ordered detained pending trial by U.S. Magistrate Judge Lurana S. Snow, in Key West, Florida on an indictment charging him with distributing child pornography.
According to allegations in the indictment and previously filed criminal complaint, and presented during court hearings, Cadogan uploaded and distributed child pornography using a social media messaging platform. Cadogan also offered to sell child pornography and said he had “100 of videos n pictures.” In messages with an online undercover agent, Cadogan indicated he had engaged in sexually explicit conduct with minor children.
This case is set for trial during the two-week period commencing Feb. 20, 2024. If convicted of the charge contained in the federal indictment, Cadogan faces a mandatory minimum term of 5 years in prison, up to twenty years in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the charges.
FBI Miami Key West Resident Agency investigated the case. Assistant U.S. Attorney Katherine W. Guthrie is handling the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 the PSC initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Anyone with information regarding suspected child abuse (to include physical and sexual abuse) is encouraged to call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
A criminal complaint and an indictment contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-mj-05020 and 23-CR-10017.
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Former City Clerk Pleads Guilty to Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – A former city clerk for Merriam Woods, Mo., pleaded guilty in federal court today to a $68,000 scheme to defraud the city.
Breanna N. Gamble, also known as Breanna Delcour, 28, of Ozark, Mo., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges her with one count of wire fraud.
By pleading guilty today, Gamble admitted that, from Oct. 1, 2018, to Aug. 11, 2019, she engaged in a scheme by which she utilized her position as a city clerk for Merriam Woods to use city funds for her personal benefit, without authorization from the city.
The loss to the city of Merriam Woods that resulted from Gamble’s fraud scheme totaled at least $68,038. Under the terms of today’s plea agreement, Gamble must forfeit to the government a money judgment in that amount.
As a part of her scheme, Gamble used the city’s credit cards and bank accounts to make personal purchases on numerous occasions, without authorization from the city, including purchases from Amazon, Victoria’s Secret, Walmart, PFI, Buckle, American Eagle, H&M, Ticketmaster, Reliable Chevrolet, Springfield Power Sports, Lululemon, and Ulta.
Gamble admitted that she forged a signature on a $5,500 city check that was used to purchase a motorcycle for her personal use.
In order to conceal her scheme and her use of the city’s funds, Gamble recorded false financial entries and false invoices. Gamble also made misrepresentations to the city’s mayor and board of aldermen, and failed to cooperate with a company hired by the city to conduct a financial audit of the city’s finances.
Under federal statutes, Gamble is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the FBI.
Federal grand jury indicts Port Townsend, Washington man for production of images of child sexual abuseRead the Press Release
Tacoma – A 32-year-old Port Townsend, Washington, man was indicted yesterday for production of images of child sexual abuse, announced U.S. Attorney Tessa M. Gorman. Matan Liyor Goodman is scheduled to be arraigned in U.S. District Court in Tacoma next week.
According to records filed in the case, the investigation began with a report to the National Center for Missing and Exploited Children (NCMEC) that a user of Kik Messenger had uploaded suspected images of child sexual abuse. Review of the computer records indicated the person uploading the images resided in Western Washington and the information was forwarded to the Internet Crimes against Children Task Force at the Seattle Police Department.
An agent with Homeland Security Investigations connected the computer information with Goodman at an address in Port Townsend. Further investigation revealed that Goodman is a registered sex offender due to convictions in California.
Law enforcement obtained a judicially approved search warrant to search Goodman’s home and person, including any electronic devices belonging to him.
Following the search in October 2023, Goodman was taken into federal custody.
The charge contained in the indictment is an allegation. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The mandatory minimum for the offense of Production of Child Pornography is 15 years. Due to his prior convictions, Goodman potentially faces a mandatory minimum 25 years in prison if convicted.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case is being investigated by Homeland Security Investigations with assistance from the Jefferson County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorneys Victoria Cantore and Matthew Hampton.
FedEx Package Containing Methamphetamine Intercepted Resulting in Federal Prison Sentence for Youngsville ManRead the Press Release
LAFAYETTE, La. – United States Attorney Brandon B. Brown announced the resolution of two cases involving drug trafficking in the Western District of Louisiana. United States District Judge David C. Joseph sentenced the following defendants yesterday.
Lynol Christian, 43, of Lafayette, Louisiana, was sentenced to 156 months (13 years) in prison, followed by 4 years of supervised release, for attempted possession with intent to distribute controlled substances. According to information presented in court, on March 20, 2023, Christian traveled on a commercial airline from Baton Rouge to Los Angeles, California. While in California, Christian shipped a package containing methamphetamine via FedEx to an individual in Youngsville, Louisiana. The return label listed Christian’s own address, which is also in Youngsville. Christian returned on a commercial airline back to Baton Rouge and into the Western District of Louisiana on March 22, 2023. Employees with FedEx notified authorities of the suspicious package and notified law enforcement. The package was secured and opened and found to contain 2,255 grams of suspected methamphetamine in 5 plastic bags. The suspected narcotics were sent to the DEA Southeast Laboratory for analysis, and it was determined that the substances were in fact methamphetamine with a net weight of 2,228.3 grams. Christian was subsequently indicted and pleaded guilty to the charge on October 18, 2023.
The case was investigated by the U.S. Drug Enforcement Administration and Department of Homeland Security Investigations and prosecuted by Assistant United States Attorney Daniel J. McCoy.
In a separate and unrelated case, Dwayne Batiste, 51, of Breaux Bridge, Louisiana, was sentenced to 144 months (12 years), followed by 5 years of supervised release, for possession with intent to distribute controlled substances. On September 8, 2022, law enforcement agents executed a search warrant at a residence on Gilbert Street in Lafayette. While searching in a bedroom of the residence, agents found documentation belonging to Batiste, including ledgers of narcotics transactions. A further search led agents to find a clear bag containing a brown substance which was later determined to be fentanyl, as well as a clear bag containing an off-white substance suspected to be heroin or cocaine. Agents also found in the residence and in Batiste’s vehicle over $13,000 in cash, digital scales and boxes of sandwich baggies. The suspected narcotics were sent to the Acadiana Crime Laboratory where they were confirmed positive for the presence of fentanyl with a neg weight of over 500 grams. Batiste was charged and pleaded guilty to knowing possessing the fentanyl with the intent to distribute it to another person.
The case was investigated by the U.S. Drug Enforcement Administration and Lafayette Parish Sheriff’s Office Narcotics Unit and prosecuted by Assistant United States Attorney LaDonte A. Murphy.
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Fargo Man Sentenced to 11 Years in Federal Prison for Conspiracy to Tamper with a Federal WitnessRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that on January 18, 2024, Daniel Saydee Cisse, age 19, Fargo, ND, was sentenced by Chief District Judge Peter Welte to 11 years in federal prison and five years supervised released for Conspiracy to Tamper with a Witness.
On September 25, 2023, Cisse pleaded guilty for his role in assaulting a federal witness in the Cass County jail on January 14, 2023. As noted at the plea hearing, co-conspirators planned and arranged to assault the federal witness with the intent to influence, delay or prevent the witness from testifying in an official proceeding and to prevent him from providing information to law enforcement regarding the drug-related homicide of Santino Marial. Marial was shot to death in Fargo, ND. on August 28, 2020.
Co-defendants Jesse James Burnett and Shaquiel Anthony Mendez are currently set for trial on July 16, 2024.
This case was investigated by Alcohol, Tobacco, Firearms and Explosives, Fargo Police Department, Cass County Sheriff’s Department, and the Cass County State’s Attorney’s Office.
The cases are being prosecuted by Assistant U.S. Attorneys Christopher C. Myers and Jacob T. Rodenbiker.
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Fannin County man sentenced for multiple East Texas bank robberiesRead the Press Release
SHERMAN, Texas – A Leonard, Texas man has been sentenced to federal prison for robbing multiple banks in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Kevin Long, 31, pleaded guilty to bank robbery and was sentenced to 70 months in federal prison by U.S. District Judge Sean Jordan on January 18, 2024. Long was also ordered to pay restitution of $573,000.
According to information presented in court, Long robbed multiple banks in East Texas between 2020 and 2021. During the robberies he passed threatening notes to bank employees, he physically restrained bank employees, and he stole over $550,000. Those robberies include: CapTex Bank in Bonham on Jan. 31, 2020; Financial Bank in Farmersville on August 11, 2020; Bancorp South Bank in Tom Bean on Oct. 16, 2020; Commercial Bank in Farmerville on August 13, 2021; and First United Bank in Leonard on August 20, 2021.
This case was investigated by the Federal Bureau of Investigation, Bonham Police Department, Farmersville Police Department, Grayson County Sheriff’s Office, Sherman Police Department, Allen Police Department, Leonard Police Department, Bells Police Department, Tom Bean Police Department, and Texas Department of Public Safety.
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Exporter sentenced to prison for shipping heavy equipment to Iran in violation of U.S. sanctionsRead the Press Release
ATLANTA - Jalal Hajavi has been sentenced for conspiring to violate the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations, smuggling goods from the U.S., unlawfully exporting and reexporting goods from the U.S. to Iran without a license, and unlawfully engaging in transactions and dealings based on his participation in a scheme to export unlawfully heavy equipment from the U.S. to Iran by routing the shipments though the United Arab Emirates (“UAE”).
“Hajavi’s conduct was particularly egregious because he was previously informed on at least two occasions that his conduct was prohibited,” said U.S. Attorney Ryan K. Buchanan. “Instead of heeding the warnings, he continued to divert U.S. goods to Iran. Trade sanctions against Iran comprise a critical component of U.S. foreign policy designed to keep our country and citizens safe. Criminal actors like Hajavi, who seek to profit by evading these prohibitions and jeopardize our national security, will be prosecuted.”
“Mr. Hajavi illegally shipped industrial equipment to the Iranian regime, smuggled restricted goods through the UAE to Iran, and caused a shipping company to submit false information to the U.S. government. He has been held to account for his crimes,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “As this case shows, the Justice Department remains committed to enforcing U.S. sanctions and export control laws to deny Iran the commodities that fuel its malign activities abroad and threaten our nation’s security.”
“This sentencing is the result of a highly successful joint investigative effort with our law enforcement partners and the U.S. Attorney’s Office for the Northern District of Georgia that disrupted an illicit Iranian procurement scheme,” said John Johnson, Special Agent in Charge, Office of Export Enforcement’s Miami Field Office. “OEE is fully committed to protecting national security by denying U.S. commodities to U.S. sanctioned countries.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Jalal Hajavi and a co-conspirator located in Iran conspired to evade U.S. sanctions by exporting U.S. heavy machinery through the UAE to Iran without first obtaining the required licenses from the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”). Hajavi, through his company JSH Heavy Equipment, LLC, located heavy equipment for sale in the U.S., such as bobcats and wheel loaders, and sent information about his findings to the co-conspirator in Iran. Hajavi purchased the items from U.S. sellers and used freight forwarding companies to ship the heavy equipment from the U.S. to the UAE, where his Iranian co-conspirator diverted the machinery to Iran in circumvention of the U.S. export license requirement.
In addition to evading OFAC licensing requirements, Hajavi concealed his activities with the co-conspirator by causing false information to be entered into the Automated Export System (“AES”), a U.S. government database containing information about exports from the U.S. Hajavi falsely claimed that the items were destined for his supposed UAE customers, which typically were general trading companies located in free trade zones in the UAE, but in reality, the items were destined for Iran.
At one point, Hajavi met with a Special Agent from the Bureau of Industry and Security who informed Hajavi about the U.S. sanctions against Iran, including the prohibition to transship U.S. goods through third countries to Iran. Undeterred, Hajavi continued his unlawful conduct.
One of the items that Hajavi purchased and unlawfully caused to be shipped was an Ingersoll Rand Blasthole Drill, which is a type of heavy machinery used in construction to drill holes in the ground usually filled with controlled charges. Hajavi purchased the drill from a U.S. company and, as part of a sham transaction, purportedly sold the drill to a UAE company. Hajavi hired a U.S. freight forwarder to arrange the drill’s export from the U.S. to the UAE During the shipping process, the freight forwarder submitted information provided by Hajavi to AES about the shipment. Hajavi falsely told the freight forwarder that the UAE company was the ultimate consignee and provided the false ultimate destination of the UAE, when Hajavi knew that the Iranian co-conspirator was the true buyer and that Iran was the ultimate delivery destination. The Iranian co-conspirator subsequently shipped the drill from the UAE to Iran.
Jalal Hajavi, 60, of Sterling, Virginia, was sentenced by U.S. District Judge Thomas W. Thrash to two years in prison to be followed by three years of supervised release. He was convicted by a jury on September 11, 2023.
The U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement conducted the investigation. The Federal Bureau of Investigation provided assistance.
Assistant U.S. Attorney Tracia M. King and Trial Attorney Emma Dinan Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Exporter Sentenced to Prison for Shipping Heavy Equipment to Iran in Violation of U.S. SanctionsRead the Press Release
A Virginia man was sentenced yesterday to 24 months in prison followed by three years of supervised release for criminal conduct in connection with a scheme to unlawfully export heavy equipment from the United States to Iran by routing the shipments though the United Arab Emirates (UAE).
Jalal Hajavi, 60, of Sterling, was convicted by a jury in September 2023, of conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR), smuggling, and unlawfully exporting and reexporting goods from the United States to Iran without a license.
“Mr. Hajavi illegally shipped industrial equipment to the Iranian regime, smuggled restricted goods through the UAE to Iran, and caused a shipping company to submit false information to the U.S. government. He has been held to account for his crimes,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “As this case shows, the Justice Department remains committed to enforcing U.S. sanctions and export control laws to deny Iran the commodities that fuel its malign activities abroad and threaten our nation’s security.”
“Shipping items to Iran is against the law, regardless of whether done directly or by way of a third country,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “As demonstrated by this sentencing, when proliferators falsify export records to support illicit Iranian procurement schemes, they get caught and they do prison time.”
“Hajavi’s conduct was particularly egregious because he was previously informed on at least two occasions that his conduct was prohibited,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “Instead of heeding the warnings, he continued to divert U.S. goods to Iran. Trade sanctions against Iran comprise a critical component of U.S. foreign policy designed to keep our country and citizens safe. Criminal actors like Hajavi, who seek to profit by evading these prohibitions and jeopardize our national security, will be prosecuted.”
According to court documents, Jalal Hajavi and a co-conspirator located in Iran conspired to evade U.S. sanctions by exporting U.S. heavy machinery through the UAE to Iran without first obtaining the required licenses from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). Hajavi, through his company JSH Heavy Equipment LLC, located heavy equipment for sale in the United States, such as bobcats and wheel loaders, and sent information about his findings to the co-conspirator in Iran. Hajavi purchased the items from U.S. sellers and used freight forwarding companies to ship the heavy equipment from the United States to the UAE, where his Iranian co-conspirator diverted the machinery to Iran in circumvention of the U.S. export license requirement.
In addition to evading OFAC licensing requirements, Hajavi concealed his activities with the co-conspirator by causing false information to be entered into the Automated Export System (AES), a U.S. government database containing information about exports from the United States. Hajavi falsely claimed that the items were destined for his supposed UAE customers, which typically were general trading companies located in free trade zones in the UAE, but in reality, the items were destined for Iran.
At one point, Hajavi met with a Special Agent from the Bureau of Industry and Security who informed Hajavi about the U.S. sanctions against Iran, including the prohibition to transship U.S. goods through third countries to Iran. Undeterred, Hajavi continued his unlawful conduct.
One of the items that Hajavi purchased and unlawfully caused to be shipped was an Ingersoll Rand Blasthole Drill, which is a type of heavy machinery used in construction to drill holes in the ground usually filled with controlled charges. Hajavi purchased the drill from a U.S. company and, as part of a sham transaction, purportedly sold the drill to a UAE company. Hajavi hired a U.S. freight forwarder to arrange the drill’s export from the United States to the UAE. During the shipping process, the freight forwarder submitted information provided by Hajavi to AES about the shipment. Hajavi falsely told the freight forwarder that the UAE company was the ultimate consignee and provided the false ultimate destination of the UAE, when Hajavi knew that the Iranian co-conspirator was the true buyer and that Iran was the ultimate delivery destination. The Iranian co-conspirator subsequently shipped the drill from the UAE to Iran.
The Department of Commerce Bureau of Industry and Security’s Office of Export Enforcement conducted the investigation, with valuable assistance provided by the FBI.
Assistant U.S. Attorney Tracia M. King for the Northern District of Georgia and Trial Attorney Emma Dinan Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Elmira man arrested for attempting to have sex with a minorRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Jacob Brewer, 31, of Elmira, NY, was arrested and charged by criminal complaint with attempted enticement of a minor, attempted receipt of child pornography, and attempted possession of child pornography, which carry a mandatory minimum penalty of 10 years in prison and a maximum of 20 years.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, on August 19, 2024, a parent reported to the Elmira Police Department that his 16-year-old daughter (Minor) was contacted on Facebook and Instagram by a 31-year-old male, who he believed to be Brewer. The parent stated that Brewer provided his phone number to the Minor and asked her to text him. In response, the parent sent text messages to Brewer posing as the Minor. During this conversation, Brewer attempted to arrange a meeting to engage in sexual activity with the Minor and sent sexually explicit photos and videos of himself. The parent then provided the messages exchanged with Brewer to the Elmira Police. The messages were subsequently turned over to the New York State Police (NYSP).
A NYSP investigator began exchanging messages with Brewer, posing as the Minor. They exchanged over 1,500 messages. During that time, Brewer sent over 60 pictures, videos, and files, many sexually explicit in nature. On October 1, 2024, Brewer and “the Minor” made plans to meet the following day to engage in sexual activity at Brewer’s residence. Brewer told “the Minor” to look “like ur 18.” On October 2, 2024, investigators executed a search warrant and took Brewer into custody. Investigators seized the cell phone Brewer used to communicate with the Minor. A search of the cell phone also recovered multiple conversations via several messaging applications between Brewer and various females, including suspected minors. Many of the conversations were sexual in nature.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Erin Keegan, the New York State Police, under the direction of Acting Major Kevin Sucher, and the Elmira Police Department, under the direction of Chief Kristen Thorne.
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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El Departamento de Justicia publica un informe de su análisis de incidentes críticos sobre la respuesta al tiroteo masivo en la Escuela Primaria Robb en Uvalde, TexasRead the Press Release
El Departamento de Justicia anunció hoy la publicación de un informe de su análisis de incidentes críticos sobre la respuesta de las fuerzas del orden público al trágico tiroteo escolar en la Escuela Primaria Robb. El Fiscal General Merrick B. Garland anunció el análisis poco después de la tragedia del 24 de mayo de 2022 en la que fallecieron 19 menores y dos maestras en la Escuela Primaria Robb en Uvalde, Texas. El informe proporciona una descripción exhaustiva del análisis de incidentes críticos que se ha llevado a cabo en los últimos 20 meses.
El informe pretende ofrecer la evaluación más completa disponible de la respuesta de las fuerzas del orden público al terrible incidente del 24 de mayo de 2022, así como de la respuesta médica de emergencia, las comunicaciones y los servicios especializados en traumas después de la tragedia. Comienza con una cronología minuto a minuto que reconstruye los acontecimientos clave antes, durante e inmediatamente después del tiroteo. El informe aborda muchas cuestiones que hasta ahora habían quedado sin respuesta, amplía la base de conocimientos existente sobre la respuesta a incidentes de violencia masiva e identifica las prácticas generalmente aceptadas para una respuesta eficaz de las fuerzas del orden público. Con ello, este informe pretende conmemorar a las víctimas y a los sobrevivientes de esta tragedia, así como ofrecer recomendaciones para mejorar las respuestas futuras en otras comunidades.
"Las víctimas y los sobrevivientes del tiroteo masivo en la Escuela Primaria Robb merecían algo mejor", afirmó el Fiscal General Merrick B. Garland. "La respuesta de las fuerzas del orden público en la Escuela Primaria Robb el 24 de mayo de 2022 – y la respuesta de los funcionarios en las horas y días posteriores – fue un fracaso. Como consecuencia del fracaso del liderazgo, la capacitación y las políticas, 33 estudiantes y tres de sus maestras – muchos de los cuales habían recibido disparos – quedaron atrapados en una sala con un tirador activo durante más de una hora, mientras que los funcionarios del orden público permanecieron fuera. Esperamos honrar a las víctimas y a los sobrevivientes al trabajar juntos para intentar evitar que algo así vuelva a ocurrir, aquí o en cualquier otro lugar".
"Uvalde es una comunidad que se está sanando, y aclarar los hechos es parte de la sanación," expresó la Fiscal General Asociada Vanita Gupta. "Como dejé claro el abril pasado cuando vine a Uvalde para reunirme con las familias, y les reiteré anoche, prometimos que nuestro informe honraría a las víctimas y los sobrevivientes; proporcionaría un recuento detallado, independiente y fidedigno de los hechos; y no sólo miraría hacia atrás, sino que también identificaría las lecciones aprendidas y las recomendaciones para otras comunidades, para evitar que algo como esto vuelva a suceder".
"Las observaciones y recomendaciones de este informe se basan en las normas nacionales, las normas y prácticas generalmente aceptadas, la investigación actual y las expectativas de las comunidades", declaró Hugh T. Clements, Jr., Director de la Oficina de Servicios Policiales Orientados hacia la Comunidad (Oficina COPS, por sus siglas en inglés). “Estos informes son fundamentales para la aplicación de la ley y, por ende, para la comunidad. A medida que los organismos se esfuerzan constantemente por mejorar y estar mejor preparados, las observaciones y recomendaciones detalladas como las contenidas en este informe son de un valor incalculable para la planificación de las agencias para el futuro".
El informe examina los múltiples fallos en la respuesta a la tragedia, incluidos los fallos de liderazgo, toma de decisiones, tácticas, políticas y capacitación que contribuyeron a dichos fallos. Describe como el fallo más significativo de los agentes que respondieron al incidente el no reconocer inmediatamente que se trataba de una situación de tirador activo y no utilizar los recursos y equipos disponibles y suficientes para avanzar de inmediato y de forma continuada a fin de eliminar la amenaza. Aunque varios de los primeros agentes que llegaron al lugar actuaron inicialmente de acuerdo con las prácticas generalmente aceptadas para tratar de enfrentarse al sujeto, una vez que se retiraron después de ser recibidos con disparos, las fuerzas del orden público comenzaron a tratar el incidente como una situación de sujeto atrincherado y no como una situación de tirador activo. En total, transcurrieron 77 minutos entre el momento en que los agentes llegaron al lugar y el momento en que finalmente se enfrentaron al sujeto y lo mataron.
El informe también examina los problemas de comunicación durante y después del tiroteo, incluida la versión inexacta que se ofreció inicialmente. También documenta los servicios de apoyo y especializados en trauma que se prestaron, así como los que no se prestaron, a las víctimas, los sobrevivientes, los familiares y los respondedores.
El análisis de los incidentes críticos fue dirigido por la Oficina COPS, con el apoyo de destacados expertos en la materia con una amplia variedad de experiencia pertinente. El equipo estableció las siguientes áreas de interés: (1) reconstrucción de la cronología del incidente; (2) tácticas y equipos; (3) liderazgo, mando del incidente y coordinación; (4) respuesta e investigación después del incidente; (5) comunicaciones públicas durante y después de la crisis; (6) servicios especializados en trauma y de apoyo; (7) seguridad y protección escolar; y (8) planificación y preparación previas a incidentes.
El equipo recopiló y analizó más de 14,000 datos y documentos, entre ellos políticas, registros de capacitación, grabaciones de vídeo de cámaras corporales y de circuito cerrado de televisión, grabaciones de audio, fotografías, registros de personal, manuales y procedimientos operativos estándar, transcripciones de entrevistas, archivos y datos de investigación y otros documentos. El equipo también permaneció 54 días en el lugar de los hechos en Uvalde y realizó más de 260 entrevistas a personas que desempeñaron un papel o tenían información importante relacionada con las áreas del análisis. Entre las personas entrevistadas se encontraban personal de las agencias del orden público que participaron en la respuesta al tiroteo masivo; otros primeros respondedores y personal médico; familiares de las víctimas; proveedores de servicios a las víctimas; profesionales de la comunicación y funcionarios de información pública; personal escolar; funcionarios electos y designados; sobrevivientes y otros testigos; y personal hospitalario.
El informe, tanto en inglés como en español, así como los perfiles de las víctimas y recursos adicionales, está disponible en el sitio web de la Oficina COPS en https://cops.usdoj.gov/uvalde.
El equipo ha tenido mucho cuidado con las palabras utilizadas en el informe para transmitir los hechos, las observaciones y las recomendaciones. No obstante, las descripciones pueden resultar activadoras para algunos lectores debido a las explicaciones de este incidente con víctimas en masa, incluida la edad de las víctimas. Para obtener recursos, incluido apoyo emocional gratuito y confidencial, visite a www.988lifeline.org o llame o envíe un mensaje de texto al 988 para ponerse en contacto con la Línea de Prevención del Suicidio y Crisis disponible las 24 horas al día, siete días a la semana, 365 días al año.
Doctor sentenced in dark web murder-for-hire plotRead the Press Release
ATLANTA – James Wan has been sentenced for paying a hitman he found on the dark web to murder his girlfriend.
“This defendant believed he could mask his homicidal intentions by using electronic means,” said U.S. Attorney Ryan K. Buchanan. “By using the dark web to conceal his search for someone to kill his girlfriend, Wan expected to evade detection, even going as far as using crypto currency to pay for the crime. While criminals regularly search for new ways to harm their victims, our law enforcement partners constantly adapt their methods to identify them and bring them to justice.”
"Despite his cowardly concealment on the dark web, Wan’s cold hearted murderous plot was averted due to the exceptional work of our team. He will now face the full consequences of the criminal justice system,” said Keri Farley, Special Agent in Charge of FBI Atlanta. "This sentencing shows that the FBI will not tolerate heinous acts of violence and will go to great lengths to protect our citizens.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On April 18, 2022, while in the Northern District of Georgia, Wan accessed a dark web marketplace from his cellular telephone and submitted an order to have a hitman murder his girlfriend. The order included the victim’s name, address, Facebook account, license plate, and car description. In his request, Wan stated: “Can take wallet phone and car. Shoot and go. Or take car.” Wan then electronically transferred a 50 percent downpayment of approximately $8,000 worth of Bitcoin to the dark web marketplace.
Two days later, Wan messaged the marketplace’s administrator, stating that the transferred Bitcoin had not shown up in his escrow account on the site. The next day, the marketplace administrator asked Wan for the Bitcoin address to which Wan had sent the payment. In response, Wan identified the Bitcoin wallet address and provided a screenshot of the transaction. When the administrator said that the address Wan provided was not in their system, Wan replied, “I guess I lost $8k. I’m sending $8k to escrow now.” Wan then electronically transferred an additional Bitcoin payment worth approximately $8,000 to the marketplace. The administrator confirmed the new address was correct and that the Bitcoin had arrived in the escrow account. The administrator stated that they were proceeding with Wan’s order for a hit and asked whether Wan wanted it done as an “accident or normal shooting.” Wan responded, “accident is better.”
About a week later, on April 29, 2022, Wan electronically transferred another payment of approximately $8,000 worth of Bitcoin to the dark web marketplace to ensure his escrow account contained the total required to complete the order. Shortly thereafter, Wan posted the following in a forum on the dark web marketplace: “How soon should work be done? I have submitted an order and curious how quickly it should be carried out? Is there a way I can find out any progress? If there is anyone in my location?”
On May 10, 2022, after the value of Bitcoin dropped, Wan electronically transferred another payment of approximately $1,200 worth of Bitcoin to the marketplace to ensure his escrow account still contained the total required to complete the order.
After learning about the threat to the victim’s life, FBI special agents notified the victim, provided her protection, and questioned Wan. Wan admitted that he had placed the order for the murder, made the payments, and checked the status of the order daily on the dark web marketplace. Records from Wan’s cellular telephone and his Bitcoin wallet corroborated Wan’s confession. After speaking with FBI special agents, Wan canceled the order on the dark web marketplace.
James Wan, 54, of Duluth, Georgia, has been sentenced to seven years, three months in prison to be followed by two years of supervised release. Wan was convicted on these charges on October 17, 2023, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Bret R. Hobson is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Doctor convicted at trial for unlawfully dispensing controlled substancesRead the Press Release
MIAMI – On Jan. 12, a Miami federal court jury convicted a doctor of conspiracy to unlawfully dispense and distribute controlled substances, and six counts of unlawfully dispensing controlled substances. The conviction followed a seven-day trial before U.S. District Judge James I. Cohn.
Under federal law, a physician is authorized to dispense (prescribe) controlled substances only when there is a legitimate medical basis for doing so, and the dispensing is consistent with accepted standards of professional medical practice.
According to court documents and evidence introduced at trial, Osmin Morales, 72, of Weston, Florida, established a purported pain management clinic in which he issued prescriptions for controlled substances, principally oxycodone, morphine, and alprazolam (a tranquilizer commonly known by its brand name, Xanax) to most patients who sought them, without any appropriate medical basis. On many occasions, Doctor Morales issued prescriptions for controlled substances without examining the patients, often when he was not even present in the clinic. Morales also often pre-wrote many prescriptions for controlled substances and provided them to his office managers to hand out for cash payments of $250 to regular patients, with the purpose of unlawfully maximizing the clinic’s profits.
Some of Morales’s former patients testified during trial that they had often obtained prescriptions for oxycodone, morphine, and alprazolam from the office staff without seeing Morales. One patient’s mother testified that she had begged Morales to stop prescribing narcotics to her daughter, because she was becoming dysfunctional, but he continued prescribing them.
Medical records from Morales’s office described a number of medical examinations he had purportedly conducted of patients which described the patients’ symptoms and included Morales’s diagnoses for which he prescribed opioids to them. However, official records from the U.S. Customs and Border Protection (CBP) confirmed that on many of the dates for those purported examinations, Morales had been out of the country. A Drug Enforcement Administration (DEA) agent testified that Florida’s prescription drug monitoring program showed that during the time of the indictment, Morales had prescribed opioids to more than a thousand patients, most often the maximum available doses. The DEA agent also researched numerous patients by name and found that nearly one-third of them had criminal records relating to drug dealing.
A pain medicine expert witness testified that none of the patient medical records he had examined contained any proper medical basis for the use of opioids, such as oxycodone or morphine, nor any basis for the use of benzodiazepines, such as alprazolam. The pain medicine expert also testified that the combination of opioids and benzodiazepines that Morales regularly prescribed, both of which are central nervous system depressants, created an enhanced risk of overdose and death.
A former member of the Morales’s office staff testified that she had collected approximately $4,000 per day, in cash, from patients to whom Morales provided controlled substance prescriptions. On most of those days, Morales had not been present at the clinic.
Morales is scheduled to be sentenced on April 17. He faces up to 20 years in prison for the conspiracy count and the same for each of the additional counts of unlawful dispensing.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Deanne L. Reuter of the DEA, Miami Field Division, announced the conviction.
DEA Miami Field Division investigated the case with assistance from CBP. Assistant U.S. Attorneys Frank Tamen and Theodore Joseph O’Brien are prosecuting the case. Assistant U.S. Attorneys Emily Stone and Mitchell Hyman are handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20255.
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DEA Controlled Buys, Seizure of 541g of Fentanyl Lead to Guilty Plea from Biddeford ManRead the Press Release
PORTLAND, Maine: A Biddeford man pleaded guilty today in U.S. District Court in Portland for his role in a fentanyl trafficking conspiracy in southern Maine.
According to court records, Michael Bolster, 48, conspired with others to distribute and possess with intent to distribute fentanyl. In July 2023, Bolster and a coconspirator sold fentanyl to a confidential source on three separate occasions. The sales were for 9 grams, 30 grams and 29 grams of fentanyl, respectively. In August 2023, law enforcement executed a search warrant at Bolster’s residence and seized two large bundles of suspected fentanyl made up of small baggies wrapped for individual sale totaling 541 grams. The U.S. Drug Enforcement Administration (DEA) lab tested a sample of the substance and confirmed it to contain the presence of fentanyl. Just 2 milligrams of fentanyl is considered a potentially lethal dose.
Bolster pleaded guilty to one count of conspiracy to distribute more than 40 grams of fentanyl and two counts of distribution of fentanyl. He faces 5-40 years in prison and a fine up to $5 million followed by four years to life of supervised release on the conspiracy charge. On each of two counts of distribution of fentanyl, he faces up to 20 years and a fine up to $1 million followed by three years to life of supervised release. Bolster will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
DEA investigated the case.
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Convicted Felon from Newton Sentenced to More Than Eight Years in Prison for Selling Cocaine, Firearm, AmmunitionRead the Press Release
BOSTON – A previously convicted felon was sentenced today in federal court in Boston for cocaine distribution and firearm offenses.
Shawn Craig, 38, of Newton, was sentenced by U.S. District Court Judge Patti B. Saris to 99 months in prison and three years of supervised release. In September 2023, Craig pleaded guilty to three counts of possession with intent to distribute and distribution of cocaine and one count of possession of a firearm and ammunition as a convicted felon. Craig was charged in January 2022.
Craig coordinated three drug transactions with an undercover agent between September and October 2022. Craig met with the undercover agent near his Newton residence on three separate occasions – Sept. 12, Oct. 20 and Oct. 26, 2022 – to conduct the deals, during which Craig provided cocaine in exchange for cash. Prior to the third meeting, on Oct. 26, 2022, Craig sent an image of a firearm to the undercover agent and indicated that he could sell it to the agent. During the subsequent meeting, Craig provided the undercover agent with a firearm, ammunition and a quantity of cocaine.
At the time of the conduct, Craig was on federal supervised release for a 2014 federal conviction for possessing a stolen firearm and possessing a firearm with an obliterated serial number. Craig was sentenced to seven years in prison and three years of supervised release in that 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; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; Middlesex District Attorney Marian Ryan; and Newton Police Chief John F. Carmichael Jr. made the announcement today. Valuable assistance was provided by the U.S. Probation Office. Assistant U.S. Attorney Kaitlin R. O’Donnell of the Organized Crime & Gang Unit prosecuted the case.
Clearfield Woman Sentenced to More Than Seven Years in Prison and Four Years of Supervised Release for Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Clearfield, Pennsylvania, has been sentenced in federal court to a total of 87 months in prison followed by four years of supervised release on her conviction of conspiracy to distribute methamphetamine, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Brittany Luzier, 30.
According to information presented to the court, from January to March 2020, in the Western District of Pennsylvania, Luzier conspired to distribute five grams or more of actual methamphetamine. Luzier was intercepted on a federal wiretap obtaining quantities of methamphetamine that she distributed to others.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation that led to the successful prosecution of Luzier. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution 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.
Citrus Heights Couple Indicted for Participation in $1 Million Unemployment Insurance Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A 10-count indictment was unsealed today charging Deshawn Oshaea Campbell, 36, and Rochelle Pasley, 33, both of Citrus Heights, with conspiracy to commit mail fraud, mail fraud, and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between June 2020 and December 2020, the two defendants conspired to defraud by filing fraudulent unemployment insurance claims with the California Employment Development Department (EDD) seeking Pandemic Unemployment Assistance benefits under the CARES Act. During the conspiracy, the defendants obtained the identifying information of other individuals and used their identities to submit dozens of fraudulent claims. The claims represented, among other things, that the claimants had recently lost employment or were unable to find employment due to the COVID-19 pandemic. These claims were fraudulent because, for instance, many of the individuals whose identities were used did not reside in California and were thus ineligible for benefits from EDD.
In the applications, the defendants used mailing addresses that were under their control, or under the control of their family and friends. EDD approved more than 50 of the fraudulent claims and authorized Bank of America to mail out EDD debit cards containing benefits. The defendants then obtained these debit cards and used them to withdraw the benefits at ATMs throughout California and to make direct purchases, all for their own benefit. The scheme resulted in EDD paying out over $1 million.
This case is the product of an investigation by the U.S. Postal Inspection Service, the Department of Labor – Office of Inspector General, and the EDD – Investigation Division. Assistant U.S. Attorneys Jessica Delaney and Justin Lee are prosecuting the case.
If convicted, Campbell and Pasley face a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conspiracy and mail fraud, and Pasley faces a mandatory, consecutive two-year prison term for aggravated identity theft. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Cincinnati man arrested for federal fraud crimesRead the Press Release
CINCINNATI – A Cincinnati man was arrested on federal fraud charges alleging he used a stolen identity for decades, compiling an extensive criminal record, getting married and fathering a child all under the assumed identity.
Yaw Mintah Afari, 46, appeared in U.S. District Court in Cincinnati yesterday, at which point his case was unsealed. He is scheduled for a detention hearing at 1:30pm tomorrow.
An affidavit filed in this case details that the victim of Afari’s alleged identity theft has significantly suffered from having his identity stolen. For example, the victim was arrested in 2009 for a warrant in Georgia for a crime that Afari committed while using his identity. The victim later had to take a DNA test to prove that he was not liable for child support payments for a child that Afari fathered under the victim’s name. Further, the victim lost his job as an Uber driver because of the criminal record Afari compiled under his identity.
According to court documents, Afari was born in Ghana in 1977 and entered the United States on a visitor’s visa in 1999. Afari obtained a Virginia driver’s license in 1999. In July 2001, he was charged with assault in Fairfax, Virginia.
After his assault charges, it is alleged that Afari stole the identity of an acquaintance that lived on his road.
It is alleged that Afari used the stolen identity in connection with various arrests, including on fraud, theft and forgery charges in Georgia in 2007 and 2009. Afari was convicted and sentenced to prison terms for the crimes in Georgia and was paroled in 2012.
In 2018 or 2019, Afari moved to Cincinnati. It is alleged he married a woman in 2019 and used the stolen identity for a marriage certificate in Hamilton County. Afari also fathered a child while using the assumed identity.
In February 2022, Afari applied for a passport in Cincinnati using the victim’s name, which led to an investigation into his true identity.
Afari is charged with aggravated identity theft (which is punishable by a two-year mandatory prison sentence), passport fraud (up to 10 years in prison) and making false statements to an agent of the federal government (up to five years in prison).
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the charges. The case is being investigated by the U.S. Department of State Diplomatic Security Service (DSS), U.S. Social Security Office of Inspector General, Homeland Security Investigations (HSI), U.S. Marshals, and Ohio BMV Investigations. Special Assistant United States Attorney Timothy A. Landry is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Christian County Man Sentenced to 10 Years in Federal Prison for Cocaine Trafficking and Illegal Possession of a FirearmRead the Press Release
Paducah, KY – A Christian County, Kentucky man was sentenced yesterday to 10 years in federal prison for possessing cocaine with the intent to distribute it, being a felon in possession of a firearm, and possessing a firearm in furtherance of drug trafficking.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Hopkinsville Police Chief Jason Newby made the announcement.
According to court documents, Morgan Hancock, Jr., 46, of Hopkinsville, was sentenced to 10 years in prison, followed by 5 years of supervised release, for one count of possessing cocaine with the intent to distribute it, one count of being a felon in possession of a firearm, and one count of possessing a firearm in furtherance of a drug trafficking crime.
Hancock was prohibited from possessing a firearm because he had previously been convicted of the following felony offense.
On September 18, 2009, in Christian Circuit Court, Hancock was convicted of first-degree trafficking in a controlled substance – cocaine.
There is no parole in the federal system.
The case was investigated by the DEA Paducah Post of Duty and the Hopkinsville Police Department.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Center Line Man Sentenced to 40 Years for Sexual Exploitation of Children and Coercion of a MinorRead the Press Release
DETROIT – Colin Clemente Martin, 34, of Center Line, Michigan, was sentenced to 40 years in federal prison on charges of coercion and enticement of a minor and the sexual exploitation of a minor by United States District Judge Denise Page Hood, United States Attorney Dawn N. Ison announced today. Martin pleaded guilty to the charges in October 2022.
Ison was joined in the announcement by Angie Salazar, Special Agent in Charge of Homeland Security Investigations.
According to court records, in 2014 and 2016 to 2017, Martin posed as a female talent scout on the internet application Musical.ly. After gaining the trust of his young victims, he forced them to engage in sexual and other horrific acts to create videos and images for his own pleasure and gratification. If the victims asked to stop doing what Martin demanded, he threatened to share the videos and images with the victims’ friends. Martin victimized at least eight identified minors.
Martin was finally stopped thanks to the bravery of his victims, several of whom reported what happened to authorities in Illinois, Ohio, and Toronto, Canada. This led to the Michigan State Police’s involvement in 2019, and to Homeland Security Investigations’ execution of a search warrant at Martin’s home in July 2020. HSI Agents worked tirelessly to analyze Martin’s devices and identify victims.
“The lengths to which individuals like Martin will go to exploit and traumatize children is truly reprehensible. The conduct in this case is horrific. Hopefully, this sentence sends a clear message to like-minded individuals: we will not allow you to harm our children and will use the full arsenal of our federal laws to stop you,” stated U.S. Attorney Ison.
“I commend the victims in this case for their courage in coming forward to report these crimes. Their efforts helped prevent the victimization of other children and put this predator away for a long time,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “We should all continue to be mindful of the dangers our children face online and have conversations early and often on how to report this crime to the authorities.”
This case was prosecuted by Assistant United States Attorney Tara Hindelang and was investigated by agents of Homeland Security Investigations.
California Man Sentenced to Prison for Defrauding his Massachusetts Employer over a 16 Year PeriodRead the Press Release
BOSTON – A California man was sentenced today in federal court in Boston for embezzling over $1.2 million from his employer over a 16-year period.
Darrell Pike, 57, of Hesperia, Calif., was sentenced by U.S. District Court Judge Judge Myong J. Joun to three months in prison to be followed by three years of supervised release, with the first nine months to be served in home confinement. Pike was also ordered to pay restitution and forfeiture of $1,232,001. In October 2022, Pike pleaded guilty to one count of mail fraud.
Pike was the general manager of an Ontario, Calif. subsidiary of a supply and service company based in Wilmington, Mass. Between approximately 2005 and 2021, Pike prepared and submitted fraudulent invoices to his employer on behalf of a fake temporary staffing company, Consumer Information Systems (CIS), for staffing services CIS purportedly provided at his employer’s Ontario location. Pike added approving initials of company personnel to the invoices without their knowledge or consent. Through the fraudulent invoices, Pike caused the company to pay approximately $1,271,206 to CIS, which he deposited into a bank account he controlled.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Businessman Arrested for Scheme to Illegally Export Semiconductors and Other Controlled Technology to RussiaRead the Press Release
BROOKLYN, NY – A complaint was unsealed today in federal court in Brooklyn charging Ilya Kahn, a citizen of the United States, Israel, and Russia, for his alleged involvement in a multi-million dollar scheme to secure and illegally export sensitive technology from the United States for the benefit of a Russian business whose clients include elements of the Russian military and the Federal Security Service (FSB), the main successor agency to the Soviet Union’s KGB. The Russian business, Joint Stock Company Research and Development Center ELVEES (Elvees), was sanctioned by the U.S. government in 2022 because of its critical role in facilitating Russia’s military and its invasion of Ukraine. The complaint charges Kahn with conspiracy to violate the Export Control Reform Act. Kahn was arrested yesterday in Los Angeles, California, and will make his initial appearance today in the Central District of California.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General for the Justice Department’s National Security Division, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan Carson, Special Agent-in-Charge, U.S. Department of Commerce, Office of Export Enforcement, Bureau of Industry and Security, New York Field Office, announced the arrest and charges.
Mr. Peace extended his appreciation to the U.S. Attorney’s Office for the Central District of California and the FBI’s Los Angeles Field Office for their assistance in this case.
“As alleged, Kahn illegally sent specialized technology from the United States to a Russian semiconductor manufacturer with ties to multiple other sanctioned Russian entities, and did so by circumventing U.S. export laws and regulations,” stated United States Attorney Peace. “Evading U.S export regulations to send goods to benefit the Russian military complex presents a danger to our national security and our allies and partners abroad. We will continue to use all of our law enforcement and national security tools to hold these enablers, both individuals and corporations, accountable for flouting the rule of law.”
“Mr. Kahn stands accused of repeatedly exporting sensitive technology to Russia before, during, and after Russia launched its unprovoked invasion of Ukraine,” stated Assistant Attorney General Olsen. “Violations of U.S. sanctions and export control laws that aid Russia and other hostile powers endanger our nation’s security and will be met with the full force of the Justice Department.”
“Illegally exporting semiconductors and other sensitive technology to a foreign adversary is not a trivial offense but a serious violation of American national security. Ilya Kahn’s alleged actions – utilizing a nefarious web of companies to export sensitive controlled technology to the Russian military and intelligence services – directly harmed the interests and security of the United States and our allies. The FBI, as we work to protect the United States, will continue to ensure that anyone willing to evade sanctions to aid hostile nations faces the consequences in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith.“Sophisticated illegal schemes such as this that violate our nation’s export control laws in effort to facilitate Russia’s war will not be tolerated. The Office of Export Enforcement will leverage our unique authorities and continue to work with our law enforcement partners to disrupt and arrest the perpetrators of these illicit schemes,” stated Department of Commerce Special Agent-in-Charge Carson.
Kahn is the owner of Senesys Incorporated based in California, and Sensor Design Association with a contact address in Brooklyn, New York. As alleged in the complaint and other public filings, Kahn operated these two businesses—ostensibly involved in “security software development” and the testing of silicon wafers for military, avionics, and space users—through which he engaged in a years-long conspiracy to acquire and export sensitive and sophisticated electronics from the United States to Elvees in Russia without securing the appropriate licenses. For example, in 2019, Kahn sent multiple U.S.-origin microcontrollers to Elvees, and in 2022, Kahn sent U.S.-origin network interface controllers and a radio-frequency transmitter to Elvees by way of a Hong Kong-based shipping company. Each of these items required an export license due to national security and anti-terrorism reasons, which Kahn did not obtain.
Kahn also arranged for Elvees to continue to receive semiconductors after Russia’s February 2022 invasion of Ukraine increased the difficulty of shipping semiconductors to Russia. These semiconductors can be used for, among other things, communications systems, GPS receivers, and equipment for unmanned aerial vehicles, also known as drones. After a company in Taiwan that manufactured Elvees-designed semiconductors refused to ship those semiconductors to Russia following the invasion of Ukraine, Kahn arranged for the semiconductors to be sent to the United States and then re-exported them to Russia often through a shipping company based at John F. Kennedy International Airport in Queens, New York. Kahn also used Hong Kong and other locations around the world as transshipment points in order to evade U.S. export laws and regulations and conceal the Russian end users.
Even after Elvees was sanctioned by the U.S. government for its role in developing electronics components for the Russian military, Kahn continued to work with Elvees. In May 2022, Kahn emailed a Taiwan manufacturer design guidance for an Elvees-branded microchip. Subsequently, Kahn shipped thousands of units of this microchip to a Hong Kong shipping company, and then to a company located in the mainland of the People’s Republic of China. Kahn noted in communications with the Hong Kong shipping company that he received a “call from Russia” about the PRC business to which he was directing the goods.
Kahn’s export activity for the benefit of Elvees dates to at least 2012, and he received more than $50 million from Elvees and related entities between 2012 and 2022.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charge, Kahn faces up to 20 years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren, Artie McConnell, and Matthew Skurnik are in charge of the prosecution, along with Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analysts Joseph Levin and Mary Clare McMahon.
Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
The Defendant:
ILYA KAHN
Age: 66
Israel, Brooklyn, NY; Los Angeles, CaliforniaE.D.N.Y. Docket No. 23-MJ-1133
Businessman Arrested for Scheme to Illegally Export Semiconductors and Other Controlled Technology to RussiaRead the Press Release
Ilya Kahn, 66, a citizen of the United States, Israel and Russia, and resident of Brooklyn, New York, and Los Angeles, California, was arrested yesterday in Los Angeles for his alleged involvement in a years-long scheme to secure and unlawfully export sensitive technology from the United States for the benefit of a Russian business. The business was sanctioned by the U.S. government following Russia’s unprovoked invasion of Ukraine in February 2022 and whose clients include elements of the Russian military and the Federal Security Service (FSB), the main successor agency to the Soviet Union’s KGB.
According to court documents, Kahn is charged by criminal complaint with conspiracy to violate the Export Control Reform Act (ECRA). Kahn will make his initial appearance in the Central District of California.
“Mr. Kahn stands accused of repeatedly exporting sensitive technology to Russia before, during, and after Russia launched its unprovoked invasion of Ukraine,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Violations of U.S. sanctions and export control laws that aid Russia and other hostile powers endanger our nation’s security and will be met with the full force of the Justice Department.”
“This arrest reflects our continued aggressive enforcement of export control violations involving the Russian military and the Federal Security Service,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security (BIS). “Stopping the flow of semiconductors and sensitive technologies to those aiding Russia’s unjust war in Ukraine is a critical priority for BIS and our Disruptive Technology Strike Force partners.”
“As alleged, Kahn illegally sent specialized technology from the United States to a Russian semiconductor manufacturer with ties to multiple other sanctioned Russian entities and did so by circumventing U.S. export laws and regulations,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Evading U.S export regulations to send goods to benefit the Russian military complex presents a danger to our national security and our allies and partners abroad. We will continue to use all of our law enforcement and national security tools to hold these enablers, both individuals and corporations, accountable for flouting the rule of law.”
“This arrest marks the end of Ilya Khan's alleged involvement in a years-long scheme to secure and export millions of dollars’ worth of sensitive technologies from the U.S. to Russia to be used by its military and intelligence services,” said Executive Assistant Director Larissa L. Knapp of the FBI's National Security Branch. “Any attempt to circumvent U.S. laws, sanctions, and regulations will not be tolerated, and thanks to a coordinated interagency effort, our national security and our partners' are stronger than ever.”
According to court documents, Kahn is the owner of Senesys Incorporated, which is based in California, and Sensor Design Association, which maintains a contact address in Brooklyn. As alleged in the complaint and other public filings, Kahn operated these two businesses – ostensibly involved in “security software development” and the testing of silicon wafers for military avionics and space users – through which he engaged in a years-long conspiracy to acquire and export sensitive and sophisticated electronics from the United States to a sanctioned Russian business without acquiring the appropriate licenses. The Russian business, Joint Stock Company Research and Development Center ELVEES (Elvees) was added to the Commerce’s Department’s Entity List in March 2022 and was sanctioned by the Treasury Department in September 2022 because of its critical role in facilitating Russia’s military and its invasion of Ukraine.
For example, according to the complaint, in 2019, Kahn exported multiple U.S.-origin microcontrollers to Elvees in Russia, and in 2022, he exported U.S.-origin network interface controllers and a radio-frequency transmitter to Elvees in Russia by way of a Hong Kong-based shipping company. Each of these items required an export license from the Commerce Department, which Kahn did not obtain, and were controlled for national security and anti-terrorism reasons.
As alleged, Kahn also arranged for Elvees to continue to receive semiconductors manufactured in Taiwan following Russia’s invasion of Ukraine in February 2022. Specifically, after the Taiwanese company that manufactured Elvees-designed semiconductors refused to ship those semiconductors to Russia, Kahn arranged for the semiconductors to be sent to the United States and then re-exported them to Russia, often through a shipping company based at John F. Kennedy International Airport in Queens, New York. Kahn also used Hong Kong and other locations around the world as transshipment points to evade U.S. export laws and regulations and to conceal the Russian end users.
Even after Elvees was added the Entity List, Kahn continued to work with the company. In May 2022, Kahn emailed design guidance for an Elvees-branded microchip to a Taiwan manufacturer. Subsequently, Kahn shipped thousands of units of this microchip – through a New York-based shipper – to a Hong Kong shipping company, and then to a company located in mainland China. Kahn noted in communications with the Hong Kong shipping company that he received a “call from Russia” about the Chinese business to which he was directing the goods.
If convicted, Kahn faces a maximum penalty of 20 years in prison for conspiracy to violate the ECRA.
The FBI and Department of Commerce’s BIS New York Field Office are investigating the case. The U.S. Attorney’s Office for the Central District of California provided significant assistance.
Assistant U.S. Attorneys Craig R. Heeren, Artie McConnell, and Matthew Skurnik for the Eastern District of New York and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance from Litigation Analysts Joseph Levin and Mary Clare McMahon.
Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Kahn complaintBrockton Man Pleads Guilty to Child Exploitation OffensesRead the Press Release
BOSTON – A Brockton man pleaded guilty yesterday in federal court in Boston to coercing three minors to produce child sexual abuse material (CSAM).
Zaire Aquil Lodge, 46, pleaded guilty to three counts of sexual exploitation of children and one count of receipt of child pornography. U.S. District Court Judge Richard G. Stearns scheduled sentencing for April 34, 2024. Lodge was indicted by a federal grand jury in January 2023.
According to the indictment, on various dates in 2021, Lodge employed, used, persuaded, induced and coerced three minors to engage in sexually explicit conduct for the purpose of producing CSAM. It is also alleged that Lodge knowingly received and attempted to receive CSAM between February and October 2021.
The charges of sexual exploitation of children provide for a sentence of at least 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of receipt of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime 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.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Brockton Police Chief Brenda Perez made the announcement today. Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Bridgeport Fentanyl Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that KINSTON CUTHBERTSON, 32, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 120 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl.
According to court documents and statements made in court, an investigation revealed that Cuthbertson was distributing narcotics from his Waldorf Avenue residence. Cuthbertson was arrested on May 27, 2022, after a court-authorized search of his residence revealed approximately 1.2 kilograms of fentanyl; approximately 380 grams of cocaine; a quantity of crack cocaine; items used to process and package narcotics, including a kilogram press; a money counter; and $10,702 in cash. Cuthbertson threw a shoebox containing bags of fentanyl out of a window during the execution of the search warrant. Some of the bags broke open from the impact and spilled onto the ground.
Cuthbertson has been detained since his arrest. On July 17, 2023, he pleaded guilty to possession with intent to distribute 400 grams or more of fentanyl.
This investigation was conducted by the Drug Enforcement Administration, the Connecticut State Police’s Statewide Narcotics Task Force Southwest and Statewide Urban Violence Cooperative Crime Control Task Force, and the Bridgeport Police Department’s Emergency Services Unit. The case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Box Elder man admits assaulting woman on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Box Elder man admitted today to assaulting a woman at his residence on the Rocky Boy’s Indian Reservation in 2021, U.S. Attorney Jesse Laslovich said.
Gabriel Evan Jordan, 26, pleaded guilty to a superseding information charging him with assault resulting in serious bodily injury. Gabriel faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for May 30. Jordan was detained pending further proceedings.
The government alleged in court documents that on Nov. 16, 2021, the victim, identified as Jane Doe, visited Jordan at his residence. Jordan held Jane Doe down and assaulted her, which resulted in serious bodily injury.
Assistant U.S. Attorneys Jennifer S. Clark and Stephanie D. Robles are prosecuting the case. The FBI, Rocky Boy’s Police Department, Hill County Sheriff’s Office and Chippewa Cree Law Enforcement Services conducted the investigation.
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Bluejacket Man who Represented Himself at Trial was Found GuiltyRead the Press Release
A federal jury today convicted a Bluejacket man who voluntarily waived his right to counsel and represented himself at trial. Lance Douglas Roark, 43, of Bluejacket and a member of the Delaware Tribe of Indians, was convicted of Abusive Sexual Contact with a Minor Under 12 Years of Age in Indian Country and Assault with Intent to Commit Aggravated Sexual Abuse of a Minor Under 12 years of Age in Indian Country.
“Lance Roark manipulated a child in June of 2023 to fulfill his own criminal sexual desires,” said U.S. Attorney Clint Johnson. “That child showed tremendous strength and courage in trial as she faced her predator. Lance Roark has now been held accountable for his criminal actions.”
According to court documents and testimony presented at trial, on June 9, 2023, Roark engaged in abusive sexual contact and intentionally assaulted a minor child who was eleven. When the child victim took the witness stand, prosecutors asked her questions about the sexual abuse and assault. The victim testified that Roark described biblical stories and how they could be “free in who they had sex with.” Roark asked her if she felt uncomfortable. Even after she told him that she was uncomfortable, Roark continued grooming the child. Roark showed her pornography and even convinced the child that if he abused her, they would win the lottery. He also asked the child not to tell anyone. As the child continued to describe the sexual contact and assault, Roark had a hard time making eye contact with the victim as she testified. While prosecutors presented drawings the child made describing Roark’s genitalia, he still would not make eye contact. When Roark cross-examined the child, he would not say “sexual abuse” or “sexual assault.”
On June 8, 2023, Roark approached a separate minor who is 17 years old. The witness described to prosecutors how Roark approached her after she saw him touching himself. She testified that Roark apologized for staring at her chest. Roark attempted to persuade her to have sex with him. She was able to decline his advances and separate herself from him.
Roark will remain in custody until he is sentenced at a later date. He faces up to life imprisonment. The FBI and Craig County Sheriff’s Office investigated the case.
Assistant U.S. Attorneys Chantelle Dial and Alicia N. Hockenbury prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Binghamton Felon and Escapee Sentenced to 48 Months for Illegally Possessing a FirearmRead the Press Release
UTICA, NEW YORK –Charles Harrison, 35, of Binghamton, New York, was sentenced today to serve 48 months in federal prison following his trial and conviction for possessing a firearm as a prohibited person (convicted felon).
United States Attorney Carla B. Freedman and United States Marshal for the Northern District of New York David L. McNulty made the announcement.
The trial evidence demonstrated that, following his 2012 conviction in the Northern District of New York for Conspiracy to Possess and Distribute controlled substances, Harrison was serving the final portion of his sentence at a halfway house in Connecticut. Harrison absconded from the halfway house, resulting in a warrant being issued for his arrest. On March 29, 2022, the United States Marshals Service New York/New Jersey Fugitive Task Force found Harrison hiding under a mattress in an apartment in Binghamton, New York. The U.S. Marshals also located a loaded handgun in the bedroom next to where Harrison was hiding. Forensic and testimonial evidence presented at trial linked Harrison to the handgun that was in the apartment, and the jury voted to convict him of possessing the firearm as a prohibited person by reason of his prior felony conviction.
United States District Judge David N. Hurd also sentenced Harrison to serve 3 years of supervised release to begin after his prison sentence.
This case was investigated by the United States Marshalls Service with assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New York State Police, the Broome County Sheriff’s Office, and the City of Binghamton Police Department. The case was prosecuted by Assistant U.S. Attorneys Jessica N. Carbone and Thomas R. Sutcliffe.
Benicia Man Indicted for a Second Federal Felon-In-Possession CaseRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single count indictment today against Jeremiah Malik Jefferson, 26, of Benicia, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, during a November 2023 search of his residence, Jefferson was found to be in possession of a firearm that was loaded with a high-capacity magazine and had previously been reported stolen. Jefferson is prohibited from possessing a firearm due to multiple prior felony convictions, including for burglary and a previous conviction for being a felon in possession of a firearm.
This case is the product of an investigation by the U.S. Probation Office, the Benicia Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Baton Rouge Man Sentenced to 33 Months in Federal Prison for Possessing Contraband in PrisonRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Chief Judge Shelly D. Dick sentenced Dervelle T. Barnes, age 37, a resident of Baton Rouge, Louisiana, to 33 months in federal prison following his conviction for possessing contraband in prison. The Court further sentenced Barnes to serve three years of supervised release following his term of imprisonment.
According to admissions made as part of his guilty plea, Barnes was arrested on May 18, 2022, pursuant to a federal arrest warrant at the Russell B. Long Federal Building and United States Courthouse. No contraband was found during initial searches of his person, and he was transported to the West Baton Rouge Detention Center (“WBRDC”). The following morning, however, two WBRDC deputies entered Barnes’s dorm-style cellblock due to a smoke odor. A deputy walked by Barnes, who was asleep, and observed a clear plastic bag containing white pills near Barnes’ stomach. During a search, deputies seized the bag and pills. The pills were submitted to the Louisiana State Police Crime Laboratory for testing, and lab personnel determined that the pills contained oxycodone and acetaminophen. In connection with his plea, Barnes admitted that he knowingly possessed oxycodone while in prison.
This case was investigated by the U.S. Marshal’s Service and West Baton Rouge Parish Sheriff’s Office, and was prosecuted by Assistant United States Attorney Alan A. Stevens, who also serves as Senior Litigation Counsel.
Assaults, robbery send Browning woman to prison for almost five yearsRead the Press Release
GREAT FALLS — A Browning woman who admitted to stabbing a man, biting a federal correctional officer and robbing a local store in three separate incidents on the Blackfeet Indian Reservation was sentenced today to four years and eight months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Jada Mulon Wells, 21, pleaded guilty in August 2023 to assault resulting in serious bodily injury, assault on a federal officer and robbery.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged the three separate crimes involved different victims and occurred over a few months in late 2022 and early 2023.
In the first assault, the government alleged that on Nov. 5, 2022, Wells, who had been drinking alcohol, went to a family member’s home in Browning and assaulted the victim, identified as John Doe, over a bottle of alcohol. Wells struck John Doe, kicked him in the head while he was on the ground and stabbed him four times. John Doe was transported to a local hospital then flown to Benefis hospital in Great Falls where he underwent life-saving surgery.
In the second assault, the government alleged that after Wells’ arrest on Nov. 6, 2022, she was incarcerated at the Browning Jail, a federal correctional facility operated by the Bureau of Indian Affairs. While being processed into the jail, Wells bit the hand of Jane Doe, a federal correctional officer, as she was being escorted to a holding cell. The bite broke the skin of Jane Doe’s hand.
In the robbery, the government alleged that on Jan. 13, 2023, Wells went with another person to a quilting store in Browning to try to sell a buffalo skull. The cashier, identified as Jane Doe 2, declined to buy the buffalo skull. Wells became agitated and ultimately grabbed a pair scissors. Holding them at waist high, Wells demanded that Jane Doe 2 open the till. Jane Doe 2 complied, and Wells took almost $300 from the till and stuffed it into her jacket.
Assistant U.S. Attorney Kalah A. Paisley prosecuted the case. The FBI, Blackfeet Law Enforcement Services, BIA and Cut Bank Police Department conducted the investigation.
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Armed Career Offender Sentenced to 25 Years in Federal PrisonRead the Press Release
MIAMI – On Jan. 12, Ernell Shaw, 47, of Ft. Lauderdale, Florida was sentenced to 300 months in federal prison by U.S. District Judge Roy K. Altman, following his conviction at trial for unlawfully possessing a firearm and ammunition as an Armed Career Criminal. Upon his release from custody, Shaw was also ordered to serve three years of supervised release.
On March 8, 2022, detectives from the Broward Sheriff’s Office (BSO) Crime Suppression Team and Violence Intervention Proactive Enforcement Response (V.I.P.E.R.) Unit observed the defendant driving a vehicle in Lauderhill, Florida. The vehicle was stopped because of numerous traffic violations and Shaw, once ordered out of the vehicle, was found in possession of a previously stolen and loaded Sig Sauer .380 caliber firearm, a loaded spare magazine, and narcotics.
According to the court record, Shaw has an extensive criminal history including twenty-eight prior arrests, and nine criminal convictions including three prior armed robbery with a firearm convictions, an aggravated battery with a firearm conviction, and multiple other violent crime convictions.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and BSO Sheriff Gregory Tony, announced the sentences imposed.
ATF Fort Lauderdale Field Office and BSO investigated the case. Assistant U.S. Attorney Marc Anton prosecuted it. Assistant U.S. Attorney Darren Grove is handling asset forfeiture.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement, and the community, to develop effective, locally based strategies to reduce violent crime.
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 on http://pacer.flsd.uscourts.gov under case number 23-CR-60021-Altman.
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Arapahoe, Wyoming couple arraigned on charges of aggravated child abuse and assault resulting in serious bodily injuryRead the Press Release
Truman Sitting Eagle, age 36, and Kandace Sitting Eagle, age 33, of Arapahoe, Wyoming, were arraigned on Jan. 16. They are both charged with aggravated child abuse and assault resulting in serious bodily injury. Their trial has been set for Mar. 18 before U.S. District Court Judge Alan B. Johnson in Cheyenne.
Both defendants were detained at the request of the government and remanded to the custody of the U.S. Marshals Service. If convicted on all counts, they each face no less than 10 years up to life imprisonment, up to a $250,000 fine, and up to five years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the FBI and the case is being prosecuted by Assistant U.S. Attorney Cameron J. Cook
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 24-CR-03
Another Defendant Pleads Guilty to Multiple Charges in Fatal Tractor Trailer Smuggling CaseRead the Press Release
SAN ANTONIO – A Mexican national pleaded guilty in a federal court in San Antonio to four counts related to his involvement in the smuggling of at least 66 migrants in June 2022, which resulted in the deaths of 47 adults and six children.
According to court documents, Riley Covarrubias-Ponce aka Rrili aka Rilay, 31, was a member of the human smuggling organization responsible for the failed smuggling attempt that illegally brought adults and children from Guatemala, Honduras and Mexico into the U.S. In the days leading up to June 27, 2022, Covarrubias-Ponce coordinated with other members of the organization regarding the migrants who were being smuggled to Laredo for further transport to San Antonio. Additionally, he traveled from Houston to accompany the loaded tractor trailer as it transported the migrants north on Interstate Highway 35, ultimately ending up at the unloading location on Quintana Road in San Antonio, where it was discovered that many of the smuggled migrants had died.
Covarrubias-Ponce pleaded guilty to one count of conspiracy to transport illegal aliens resulting in death; one count of conspiracy to transport aliens resulting in serious bodily injury and placing lives in jeopardy; one count of transportation of illegal aliens resulting in death; and one count of transportation of illegal aliens resulting in serious bodily injury and placing lives in jeopardy. He faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Another defendant in the case, Christian Martinez, 29, pleaded guilty to the same charges in September 2023. Other co-defendants whose cases are still pending include Homero Zamorano Jr., 47, who served as the driver of the tractor trailer; Felipe Orduna-Torres aka Cholo aka Chuequito/Chuekito aka Negro, 29; Luis Alberto Rivera-Leal aka Cowboy, 38; and Armando Gonzales-Ortega aka El Don aka Don Gon, 54. Relatedly, Juan Francisco D’Luna Bilbao pleaded guilty to the same charges as Martinez and Covarrubias-Ponce in addition to a firearms charge in June 2023.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Craig Larrabee for the HSI San Antonio Division made the announcement.
HSI is investigating the case with the assistance of the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and has received tremendous support from Customs and Border Protection; Border Patrol; Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; the San Antonio Police Department; the Bexar County Sheriff’s Office; the San Antonio Fire Department; the Marshall Police Department; and the Palestine Police Department.
Assistant U.S. Attorneys Eric Fuchs, Sarah Spears and Amanda Brown are prosecuting the case.
These charges resulted in coordination with Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the Western District of Texas is part of the JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorneys’ Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement, and Customs and Border Protection’s U.S. Border Patrol, the FBI and the Drug Enforcement Administration.
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American Airlines Flight Attendant Arrested for Filming Minors in Aircraft LavatoryRead the Press Release
BOSTON – An American Airlines flight attendant has been arrested for allegedly surreptitiously recording or attempting to record a minor female passenger using a lavatory aboard an aircraft he was working in September 2023. The defendant is also alleged to have possessed recordings of four additional minor female passengers using lavatories aboard the aircraft he had worked previously.
Estes Carter Thompson III, 36, of Charlotte, N.C., was charged with one count of attempted sexual exploitation of children and one count of possession of child pornography depicting a prepubescent minor. Thompson was arrested today in Lynchburg, Va. and will remain in custody pending his initial appearance in the Western District of Virginia. He will appear in federal court in Boston at a later date.
“The deeply disturbing conduct alleged here is something no parent or child should ever have to worry about when they travel. Mr. Thompson allegedly used his position to prey on and surreptitiously record innocent children, including unaccompanied minors, while in a vulnerable state aboard flights he was working,” said Acting United States Attorney Joshua S. Levy. “Everyone – especially children – should feel safe and secure as airline passengers, and parents should feel comfortable traveling with their children. Protecting children is a paramount priority for this office and we will aggressively investigate and hold accountable people who victimize children.”
“Today, the FBI arrested Estes Carter Thompson III after he repeatedly targeted unsuspecting children to sexually exploit them for his own gratification. What Mr. Thompson is accused of doing is disgraceful, and we believe, calculated, given that this alleged conduct occurred on at least five flights,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This case should make it crystal clear that the FBI takes crimes aboard aircraft and the sexual exploitation of children seriously. If you’ve been the victim of a crime aboard an aircraft or have witnessed one take place, we ask you to report it to both your flight crew and the FBI.”
According to the charging documents, on Sept. 2, 2023, while working as a flight attendant onboard an American Airlines flight from Charlotte, N.C. to Boston, Mass., Thompson video-recorded or attempted to surreptitiously video-record a 14-year-old female passenger as she used the aircraft lavatory. Specifically, approximately midway through the flight, the minor victim got up to use the main cabin lavatory nearest to where she was seated. When the minor victim arrived at the lavatory it was occupied. After the minor victim had been waiting a short time, Thompson allegedly approached her, told her that the first-class lavatory was unoccupied and escorted her toward first class. Before the minor victim entered the lavatory, Thompson allegedly told her that he needed to wash his hands and that the lavatory’s toilet seat was broken and briefly entered the lavatory. It is alleged that, after Thompson exited the lavatory, the minor victim entered and observed red stickers on the underside of the toilet seat lid, which was in the open position, that stated, “INOPERATIVE CATERING EQUIPMENT” and “REMOVE FROM SERVICE,” and “SEAT BROKEN” was hand-written in black ink on one of the stickers. It is alleged that, beneath the red stickers, Thompson had concealed his iPhone to record a video. The minor victim used her phone to take a picture of the red stickers and the concealed iPhone she found in the lavatory before exiting, at which time Thompson allegedly re-entered it immediately.
According to court documents, when the minor victim returned to her seat, she informed her parents of what she saw and showed them the picture. The victim’s parents reported the matter to other flight attendants onboard who notified the Captain, who in turn notified law enforcement on the ground. It is alleged that the victim’s father confronted Thompson who, shortly thereafter, locked himself in the lavatory with his iPhone for three to five minutes prior to the flight’s descent.
Upon the flight’s arrival at Boston’s Logan Airport, law enforcement observed that Thompson’s iPhone may have been restored to factory settings. It is alleged that a subsequent search of Thompson’s suitcase was found to contain 11 “INOPERATIVE CATERING EQUIPMENT” stickers, like those observed by the minor victim on the back of the toilet seat. A search of Thompson’s iCloud account allegedly revealed four additional instances between January and August 2023 in which Thompson recorded a minor using the lavatory on an aircraft. The minor victims allegedly depicted in the surreptitious recordings were seven, nine, 11 and 14 years old at the time. Additionally, over 50 images of a nine-year-old unaccompanied minor were allegedly found in Thompson’s iCloud. The images included photos taken while the minor victim was seated in her seat pre-flight and close-ups of her face while sleeping.
All minor victims involved in this matter have been identified and their families contacted by law enforcement.
It is further alleged that hundreds of images of AI-generated child pornography were also found stored on Thompson’s iCloud account.
The charge of attempted sexual exploitation of children provides for a sentence of at least 15 years and up to 30 years in prison. The charge of possession of child pornography depicting a prepubescent minor provides for a sentence of at least five years and up to 20 years in prison. Both charges also provide for at least five years and up to a lifetime of supervised release, a fine of up to $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, FBI SAC Cohen and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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.
17 January 2024
‘La Dank DMV’ Crew Member Sentenced to 74 Months for Role in Sophisticated Marijuana Distribution ConspiracyRead the Press Release
WASHINGTON – Christopher Akinduro, 30, of Washington D.C, was sentenced today to 74 months in prison for his role in a sophisticated and broad conspiracy that was responsible for bringing hundreds of pounds of marijuana from California to the metropolitan area.
The sentencing was announced by U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the Washington Field Office’s Criminal and Cyber Division.
Akinduro, a member of the “LA Dank DMV Crew”, pleaded guilty on October 3, 2023, to conspiracy to distribute, and possess with intent to distribute 100 kilograms or more of marijuana. In addition to the prison sentence, U.S. District Court Judge Colleen Kollar-Kotelly ordered Akinduro to serve 4 years of supervised release.
Seven LA Dank co-defendants have all pleaded guilty to various drug trafficking and/or firearms counts. The co-defendants include Abubakr Banire, Kavon Duncan, Joe Blyther, Isaac Akinduro, Avery Bost, Omar Butler, and Randall Lance, entered their pleas in U.S. District Court for the District of Columbia. Lance was sentenced Oct. 10, 2023, to a 63 month prison term for conspiracy to distribute over 100 kilos of marijuana. The others are awaiting sentencing on similar counts.
According to the government’s evidence, between May of 2021 and December of 2021, crew members operated a sophisticated conspiracy to traffic large amounts of high-grade marijuana from California to the DMV area for distribution to customers. As part of their distribution scheme, members of the crew relied heavily on mass marketing through three dedicated LA Dank websites, as well as social media platforms like Instagram where individual crew members advertised LA Dank branded clothing and LA Dank branded marijuana that could be bought directly online. Although the websites themselves appeared professional, LA Dank was not a licensed company to operate in the District of Columbia.
Akindkuro and his fellow crew members also used short-term rental properties to set up stash houses or points of sale that were used to conduct drug distribution operations before moving on to different locations.
Law enforcement executed its first residential search warrant on June 15, 2021, at the 1900 block of Whistling Duck Drive, Upper Marlboro, MD, after law enforcement observed multiple LA Dank crew members and purchasers traveling to and from the premises. Akinduro arrived at the location as while the search was in process. An FBI search of Akinduro’s vehicle revealed a loaded pistol in the center console, a suitcase in the trunk that was consistent with those found within the Whistling Duck house, and seven pounds of marijuana.
Even after the seizure of his vehicle, Akinduro continued to participate in the conspiracy and to possess additional firearms.
Akinduro and his LA Dank co-conspirators operated numerous stash houses in the D.C. area. Two of these locations, used by Akinduro himself, were separate long-term rentals in a hotel on the 300 block of N Street, Northeast. On December 21, 2021, the FBI executed search warrants on both units. In the first, the FBI recovered a Glock 19 9mm caliber pistol with a machine gun conversion device installed, an AR-style pistol, an AR firearm magazine loaded with 25 5.56 caliber rounds, 68 grams of marijuana, a digital scale, and a laptop labeled “LA Dank Exotics.” In the second, the FBI recovered a Glock 26 9mm caliber pistol with a machine gun conversion device installed, a second Glock 26 9 mm caliber pistol, a 9 mm caliber ammunition box, 40 pounds of marijuana, a scale, a money counter, and approximately $18,000.00 in cash. Akinduro and defendant Duncan occupied the second unit at the time of the execution of the search warrant. Akinduro discussed a “switch on the glizzy” in an Instagram post, suggesting that he was aware of the fully automatic capabilities of firearms with machine gun conversion devices installed.
This case is being investigated by the FBI’s Washington Field Office, in partnership with the Metropolitan Police Department, Prince George’s County Police Department, and Anne Arundel County Police Department.
The case is being handled by Assistant United States Attorneys Justin F. Song and Meredith E. Mayer-Dempsey of the Federal Major Crimes Section and Thomas Strong of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia.
Yukon Resident Pleads Guilty to Sexual Abuse of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tristan Ray Renzelman, age 22, of Yukon, Oklahoma, entered a guilty plea to one count of Sexual Abuse of a Minor in Indian Country.
The Indictment alleged that Renzelman sexually abused a 12-year-old child in 2021. The crime occurred in McIntosh County, within the boundaries of the Muscogee Creek Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Federal Bureau of Investigation and the Muscogee Creek Nation Lighthorse Tribal Police.
The Honorable Jason A. Robertson, 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. Renzelman was remanded to the custody of the U.S. Marshal pending the sentencing hearing.
Assistant United States Attorneys Nicole Paladino and Jessica Bove represented the United States.
York County Man Sentenced to 60 Months in Prison for Possession of A Firearm in Furtherance of Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Hakim Jamison, age 37, of York, Pennsylvania, was sentenced on January 16, 2023, to 60 months in prison by United States District Court Judge Christopher C. Conner for possession of a firearm in furtherance of drug trafficking.
According to United States Attorney Gerard M. Karam, Jamison previously pleaded guilty to one count of possession of a firearm in furtherance of drug trafficking. Jamison purchased a .45 caliber Glock semi-automatic pistol and a box of Winchester .45 caliber ammunition from Stoneybrook Shooting Supply for two codefendants, who were using those firearms in furtherance of their own drug trafficking activities.
Codefendants Shiloh Idris Johnson and Kadie Jean Swartz are scheduled for trial on April 1, 2024.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Christian Haugsby prosecuted the case.
This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted, and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
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Yonkers Man Sentenced to 12 Months for Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Errol Murray, age 22, of Yonkers, New York was sentenced today to 12 months in prison for engaging in a fraudulent scheme to obtain nearly $70,000 in unemployment insurance benefits, including benefits funded by the federal government in response to the COVID-19 pandemic.
The announcement was made by United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Jonathan Mellone, Special Agent in Charge, Northeast Region, United States Department of Labor, Office of Inspector General (USDOL-OIG); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); and New York State Inspector General Lucy Lang.
As part of his previously entered guilty plea, Murray admitted that he provided Jamie Johnson with his personally identifiable information (PII) and the PII of another person, which Johnson used to file false claims online with the New York State Department of Labor (NYSDOL). Murray further admitted that as a result of the two fraudulent applications submitted by Johnson, the NYSDOL paid out $69,954 in unemployment insurance benefits.
Johnson previously pled guilty to fraudulently obtaining $701,441 in unemployment insurance benefits as part of the scheme. Murray’s co-defendants, Taliek Lanier, age 23, of Albany, and Thomas Brace, a/k/a “Justice,” age 62, of Altoona, Pennsylvania, previously pled guilty to charges stemming from their roles in the scheme with Johnson. Lanier was sentenced to 12 months in prison to be followed by a 3-year term of supervised release, while Brace was sentenced to time served and 3 years of supervised release.
Senior United States District Judge Lawrence E. Kahn also imposed a 3-year term of supervised release, to begin after Murray is released from prison, and ordered him to pay $69,954 in restitution to the State of New York.
This case was investigated by HSI, USDOL-OIG, USPIS, and the New York State Inspector General’s Office, with assistance from the NYSDOL Office of Special Investigations, the Capital Region Crime Analysis Center, and the Albany County Department of Social Services. Assistant U.S. Attorneys Joshua R. Rosenthal and Joseph S. Hartunian prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Winthrop Man Sentenced to Prison for Tax and Mail Fraud SchemeRead the Press Release
BOSTON – The former owner and operator of APC, a transportation and delivery company based in Chelsea, was sentenced yesterday for his involvement in a mail fraud scheme.
Anthony Catalano, 52, formerly of Boxford, now living in Winthrop, was sentenced by Chief United States District Court Judge F. Dennis Saylor IV to six months in prison, followed by three years of supervised release and restitution in the amount of $541,000 to The Travelers Insurance Company (Travelers). Catalano was also ordered to cooperate with the Internal Revenue Service regarding personal and corporate taxes due and owing. Catalano pleaded guilty in October 2023 to two counts of failing to collect, report and pay over employment taxes and one count of mail fraud in connection with cash wages he paid to company employees.From 2017 to 2020, Catalano cashed more than $8 million in APC checks from customers and failed to report the company income to the IRS. Catalano pleaded guilty to using the bulk of the cash funds to pay employees “under-the-table” cash wages which APC was also required to report to the IRS. As a result, neither the company nor the employees paid employment or income taxes on the cash wages, resulting in a tax loss of more than $1 million to the IRS. Catalano also pleaded guilty to mail fraud for failing to disclose the cash wages to Travelers when it provided workers’ compensation coverage for APC employees. As a result, Catalano defrauded the insurance carrier out of more than $500,000 in insurance premiums.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Boston made the announcement today. Assistance was provided by the Massachusetts Insurance Fraud Bureau. Assistant U.S. Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit prosecuted the case.