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Thursday 16 November 2023
Winnebago Man Sentenced for Striking Man in Head with Baseball BatRead the Press Release
Acting United States Attorney Susan Lehr announced that David Snow, 39, of Winnebago, Nebraska, was sentenced on November 16, 2023, in federal court in Omaha, Nebraska for assault with a dangerous weapon with intent to do bodily harm. United States District Court Chief Judge Robert F. Rossiter, Jr. sentenced Snow to 37 months’ imprisonment. There is no parole in the federal system. After Snow’s release from prison, he will begin a 3-year term of supervised release.
On January 19, 2021, Snow was at a residence on the Winnebago Indian Reservation with the victim and another witness. Snow and the victim got into a verbal altercation, which escalated to a physical assault when Snow picked up an aluminum bat and struck the victim in the head with the bat. Snow fled the residence. The victim suffered an external headwound as well as a subarachnoid hemorrhage and was hospitalized as a result of the assault.
This case was investigated by the Federal Bureau of Investigation.
Wilton Contractor Pleads Guilty to Federal Tax OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Harry T. Chavis, Jr., Special Agent in Charge of IRS Criminal Investigation in New England, today announced that DAVID ANSPACH, 67, of Wilton, pleaded guilty yesterday in Hartford federal court to a tax offense.
According to court documents and statements made in court, Anspach operated a construction and remodeling business. During the course of a civil audit of Anspach’s tax return for the 2013 tax year, the IRS discovered that Anspach’s business receipts were underreported. Some of the underreported business receipts were subsequently accounted for as payments to workers, but in an effort to offset further receipts, Anspach provided false documents to a representative who had prepared Anspach’s tax return and was assisting him during the audit. The documents included fabricated letters and invoices intended to establish that Anspach had made payments to vendors beyond those reported on his tax return. Anspach’s representative provided the documents to the IRS.
Anspach pleaded guilty to one count of willfully delivering or disclosing to the IRS a false document, an offense that carries a maximum term of imprisonment of one year. He is scheduled to be sentenced by U.S. District Judge Michael P. Shea on February 12, 2024.
Anspach is released on a $10,000 bond pending sentencing.
This investigation is being conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Weston Man Charged with Fraud Offenses Related to $890K Embezzlement SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned an indictment charging CHARLES M. AMEER, 64, of Weston, with three counts of wire fraud stemming from an alleged embezzlement scheme.
The indictment was returned on November 8, 2023. Ameer appeared today before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and entered a plea of not guilty to the charges. He has been released on a $500,000 bond since his arrest on a federal criminal complaint on August 31, 2023.
As alleged in court documents and statements made in court, from 2017 through 2022, Ameer was the Chief Financial Officer at Indeco North America, a wholly owned subsidiary of Indeco Ind. S.P.A, headquartered in Milford. In October 2017, Ameer created a $40,000 check, which was drafted on Indeco’s bank account and made payable to the order of “WSC.” Ameer then used the check to reimburse the Weston Soccer Club, located in Weston, for funds he had previously taken from the club without its permission or authority. Ameer subsequently created additional checks, in the total amount of $850,000, which were drafted on Indeco’s bank account and made payable to him. He deposited the checks into his personal bank account and used the funds for his own benefit.
If convicted, Ameer faces a maximum term of imprisonment of 20 years on each count of wire fraud.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Heather Cherry.
Warwick Man Sentenced to Nine Years in Federal Prison for Trafficking HeroinRead the Press Release
PROVIDENCE, RI – A convicted felon who was found to be in possession of a kilogram of heroin, a loaded firearm, more than $337,000 in cash, three kilo presses and other assorted items used in the packaging and distribution of drugs, and who was found to have two sophisticated hidden compartments in his vehicle commonly used to conceal contraband, including one embedded inside a child’s car seat, was sentenced today to nine years in federal prison, announced United States Attorney Zachary A. Cunha.
Jose Manuel Rosario Mella, 55, of Warwick, who had previously been arrested in New York and used multiple names to conceal his true identity, was arrested in August 2020 by members of the Rhode Island DEA Drug Task Force after an investigation determined that he was conducting a large-scale heroin and fentanyl trafficking operation from his Warwick residence; a home that he shared with his partner and her two young children, age five and fifteen.
Rosario Mella pleaded guilty on January 10, 2023, to possession with intent to distribute 100 grams or more of heroin and being a felon in possession of a firearm.
“This defendant carried out a large-scale drug trafficking organization with zero concern for either the communities poisoned by his toxic shipments of fentanyl and heroin, or for the safety of his own children- one of whose car seats he used to hide his drug shipments,” remarked U.S. Attorney Cunha. “With today’s sentence, a large-scale drug trafficker is out of business and off of Rhode Island streets, and I commend the DEA and our state and local law enforcement partners for their diligent work to make that happen.”
“Heroin is causing great damage to our communities and in this case, it’s putting children’s lives in danger. DEA’s top priority is to aggressively pursue anyone who distributes this poison.” said DEA Special Agent in Charge Brian D. Boyle. “Illegal drug distribution ravages the foundations of our families so every time we take heroin off the streets, lives will be saved. This investigation demonstrates the strength of collaborative local, state, and federal law enforcement efforts and our strong partnership with the U.S. Attorney’s Office.”
According to charging documents and information presented to the court, in the summer of 2020, members of the DEA Drug Task Force surveilled Rosario Mella’s drug trafficking activities, including controlled purchases of heroin from the defendant by a person assisting law enforcement. On August 12, 2020, shortly after Rosario Mella drove away from his residence, his vehicle was stopped by law enforcement. A Warwick Police Department certified narcotics detection canine alerted to the presence of narcotics odors at the vehicle. The vehicle was found to contain after-market hides commonly used to conceal contraband behind the front passenger seat and in a child safety seat.
Simultaneously to the defendant’s car being stopped, a court-authorized search of Rosario Mella’s residence resulted in the seizure of a kilogram of heroin found stored among food and other kitchen items in a pantry closet; several containers of cutting agents often mixed with heroin and fentanyl to increase bulk quantities of the drugs stored in a kitchen cabinet; three kilo presses used to package kilograms of drugs; a loaded semi-automatic pistol located inside a storage bin in a bathroom; and $337,660 in cash located in various locations throughout the residence including inside drawers and stashed inside a woman’s sweater.
According to information presented to the court, the $337,660 in cash seized represents the sale of approximately thirteen kilograms of heroin.
Jose Manuel Rosario Mella was sentenced today by U.S. District Court Judge Mary S. McElroy to 108 months in federal prison to be followed by four years of supervised release. Additionally, the court ordered the firearm, cash seized by law enforcement, and two vehicles owned by Rosario Mella be forfeited to the government.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; Rhode Island State Police; the Cranston, Newport, Pawtucket, Providence, Warwick, Woonsocket, and Amtrak Police Departments.
United States Attorney Cunha acknowledges and thanks the Warwick, South Kingstown, and North Kingstown Police Departments for their added assistance in the investigation of this matter.
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Utah Residents Facing Federal Charges for Alleged Baggage Thefts at AirportRead the Press Release
SALT LAKE CITY – A federal grand jury in Salt Lake City, Utah, returned two indictments charging three Salt Lake County residents with stealing baggage from baggage carousels at the Salt Lake City International Airport (SLC).
According to court documents, Leticia Marie Torres, 42, of Salt Lake City; and Brianna Marie Taylor, 42, of Midvale, Utah, are charged in one indictment and Charles Masters, 31, of West Valley City, Utah, is charged in a separate indictment.
As alleged in the indictment for Torres and Taylor, in January 2022, Torres and Taylor stole multiple pieces of baggage on various days from multiple victims with the intent to keep them for their personal use. As part of their scheme to defraud, Torres and Taylor used multiple stolen credit cards belonging to one of the victims and received payment and other items of value during a one-year period.
According to court documents, from January 2022 to February 2022, Masters stole thousands of dollars worth of baggage with the intent to keep them for his personal use.
Torres and Taylor are both charged with theft of baggage from interstate shipment, illegal transactions with an access device, and aggravated identity theft. Masters is charged with five counts of theft of baggage from interstate shipment. Torres, Taylor and Masters had their initial appearances on the indictment Nov. 16, 2023, before a U.S. District Court Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah, Salt Lake City Police Department (SLCPD) and the Salt Lake City International Airport made the announcement.
The investigation is being worked jointly by an FBI Task Force Officer with the Salt Lake City Police Department and the Salt Lake City Police Department Airport Division.
Assistant United States Attorneys Jawayria Z. Auchter and Michael Kennedy of the District of Utah are prosecuting the case.
As part of ongoing efforts to decrease baggage thefts at airports, Salt Lake City Police Department and the Salt Lake City International Airport say the best way to prevent theft is to ensure your bag is never left unattended. Recognizing that flying with carry-on bags is not always feasible, SLCPD recommends the following tips as travelers enter the holiday and ski season in the beehive state:
- Place irreplaceable or high value items in your carry-on baggage (Note: Passengers must know which items are required to be checked or prohibited from being checked or brought onto an aircraft).
- Reconsider purchasing luxury-branded luggage as this could be an allure to potential thieves.
- Make your checked luggage distinctive using stickers, tape, ribbon or consider purchasing a brightly colored suitcase.
- Keep a record of what you pack and take a photo of your belongings and your luggage. Photos can be helpful during a police investigation and for insurance purposes.
- After landing, avoid unnecessary delays and head to the baggage pick-up area immediately so your bag is not left unattended when on the baggage carousel.
- Ensure your bag is clearly labeled with your contact information. For privacy reasons, an address is not necessary, but a name and phone number should be included.
- If you believe someone has stolen your luggage, be sure to file a police report and file reports with the airline and TSA.
- Report anything suspicious to an airport/airline official or airport police.
The Salt Lake City Police Department’s Airport Division continues to conduct proactive operations to curb baggage theft from Salt Lake City International Airport. Officers and detectives work closely with airline and airport staff to ensure the security of passenger luggage.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Texas Men Sentenced to Prison for Firearms Trafficking to MexicoRead the Press Release
Two Texas men were sentenced to prison for their roles in firearms trafficking to Mexico.
“Traffickers in fully automatic firearms from the United States to Mexico aid in the cartels’ efforts to manufacture dangerous drugs and smuggle them into our country,” said Attorney General Merrick B. Garland. “The Justice Department will do everything in its power to find and hold accountable the gun traffickers who are arming the cartels. I am grateful to the U.S. Attorney’s Office for the Southern District of Texas and ATF for their outstanding work in both of these cases.”
“ATF cannot and will not stand by while Ghost Guns flow to Mexican Cartels to support their violent and deadly crimes,” said Director Steven Dettelbach of the Bureau of Alcohol, Tobacco and Firearms (ATF). “With our partners, ATF is working every day to catch the firearms traffickers, drug dealers, and straw purchasers who arm those criminals with increasingly lethal weaponry, which includes machine guns. We will use every tool provided, including the new laws in the Bipartisan Safer Communities Act, to try to stop those arming the cartels.”
Jaime Jesus Esquivel, 37, of Laredo, was sentenced to 120 months in prison followed by three years of supervised release for possession of a machine gun, possession of a firearm by a convicted felon, and conspiracy to possess intent to distribute cocaine. Esquivel pleaded guilty on June 6, admitting, in part, to producing and illegally exporting fully automatic firearms to Mexico for the use of drug cartels.
Jose Abraham Nicanor, 34, of Houston, was sentenced to 60 months in prison for the illegal purchase and trafficking of firearms. A federal jury convicted Nicanor on May 11 on all 13 counts as charged following a three-day trial. He was also convicted for possessing a firearm after a previous felony for armed robbery.
United States v. Esquivel
As part of the undercover investigation, authorities conducted four controlled purchases of cocaine and AR-type fully automatic rifles. The weapons were ghost guns, a common term for privately made firearms absent any manufacture marks of identification. Esquivel assembled these weapons for distribution.
Esquivel also made the firearms from various components of combat weapons including Colt M4 parts and a 3D-printed polymer AR-type drop in auto sear or machine gun conversion device (MGCD). An MGCD is any part designed and intended solely and exclusively for use in converting a weapon into a machine gun.
Law enforcement executed two search warrants and seized privately-made manufactured AR-type lower receivers, firearm parts, firearm manufacturing tools, 950 rounds of assorted ammunition, a 7.62mm rifle, a 12-gauge shotgun and a privately-made short-barrel fully automatic rifle without serial numbers or industry markings. They also found methamphetamines, cocaine, and a 3D printer.
As a convicted felon, he is now prohibited from possessing firearms or ammunition.
Esquivel will remain in custody pending transfer to a Federal Bureau of Prisons (FBOP) facility.
The Drug Enforcement Administration (DEA), ATF, and Laredo Police Department investigated the case.
Assistant U.S. Attorney Brandon Scott Bowling for the Southern District of Texas prosecuted the case.
United States v. Nicanor
At the hearing, the court heard evidence that showed Nicanor aggregated the firearms shipment to Mexico. In handing down the sentence, the court noted Nicanor’s conduct amounted to more than mistakes, but to a pattern of choices to violate the law.
At trial, the jury heard that Nicanor recruited two straw purchasers to buy high-caliber rifles that drug trafficking organizations regularly seek.
Testimony and evidence presented at court showed that a total of 94 firearms were attributable to Nicanor’s straw purchasing group. Mexican authorities later recovered many of the firearms in the possession of drug trafficking organizations.
The jury also heard that Nicanor rented a machine gun at a local gun range and posted a video of himself with the firearm to his social media. As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law.
Nicanor was permitted to remain on bond and voluntarily surrender to an FBOP facility to be determined in the near future.
The straw purchasers, James Paxton Jefferson, 34, and Alejandro Garcia, 33, both of Houston, previously pleaded guilty and have been sentenced.
ATF investigated the case. Mexican authorities also provided assistance.
Assistant U.S. Attorneys Lisa Collins and Stuart Tallichet for the Southern District of Texas prosecuted the case.
Two St. Louis Area Men Sentenced to Prison for Methamphetamine, Gun CrimesRead the Press Release
ST. LOUIS – Two men caught with 1.3 kilograms of methamphetamine, four guns and more than $7,500 in cash were each sentenced in U.S. District Court this week to more than 10 years in prison.
U.S. District Judge Ronnie L. White on Thursday sentenced Deandre Q. Brett, 26, of St. Louis, to 138 months in prison.
Judge White sentenced Robert K. Kinney, 24, of Berkeley, in St. Louis County, on Wednesday to 130 months.
Kinney originally attracted the attention of St. Louis County Police officers when he sped away from a police vehicle on July 28, 2021, passing other vehicles in the center turn lane, according to plea agreements by Kinney and Brett and court documents. After officers used a spike strip on the white Kia Forte Kinney was driving, he kept driving until the car began to slide off the road on four flat tires.
Kinney got out holding a Glock pistol with an extended capacity magazine and ran away from officers. He was arrested and police found $3,792 in cash, drugs and ammunition in a bag he carried. Brett was arrested at the Kia. Officers found a stolen Glock pistol in the car, as well as a SKS Interarms Hellpup semi-automatic rifle, an Arsenal SAM7K semi-automatic rifle and three packages containing a total of 1.3 kilograms of meth. Brett’s bag held two Glock magazines, $3,796 in cash and marijuana.
Kinney and Brett both pleaded guilty in August to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
The St. Louis County Police Department and the FBI investigated the case. Assistant U.S. Attorney Ryan Finlen is prosecuting the case.
Two Highest-Ranking Leaders of Gorilla Stone Bloods Gang Convicted at Trial of Racketeering and Narcotics OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that DWIGHT REID, a/k/a “Dick Wolf,” and CHRISTOPHER ERSKINE, a/k/a “Beagle,” were found guilty yesterday of racketeering and narcotics conspiracy in connection with their leadership of the Untouchable Gorilla Stone Nation Bloods Gang (“Gorilla Stone”), a brutally violent street and prison gang that operates across the country. REID, the gang’s highest-ranking member, is the gang’s founder and prison leader. ERSKINE, the gang’s street leader, also known as the “Sun,” is the gang’s second highest-ranking member. The convictions followed a nearly three-week trial before U.S. District Judge Philip M. Halpern. REID will be sentenced on May 21, 2024, and ERSKINE will be sentenced on May 23, 2024.
U.S. Attorney Damian Williams said: “Dwight Reid and Christopher Erskine are the two highest-ranking members of Gorilla Stone, a ruthless gang, and are responsible for terrible violent acts and trafficking dangerous narcotics across the country and state, including throughout the New York State prison system. They now stand convicted of their crimes and will no longer be able to inflict harm on the people of our District.”
According to the Indictment, public court filings, and statements made in court:
REID founded Gorilla Stone over 20 years ago. Gorilla Stone has many members across New York State, including throughout New York City, Westchester, Upstate New York, and the New York State Prison System, and all over the country, such as in Florida. Gorilla Stone is comprised of various sets (or “Caves,” as they are called by gang members). Gorilla Stone is a highly organized and efficient street gang with an organizational commitment to violence that strictly enforces its internal laws.
Among Gorilla Stone’s acts of violence are:
- A September 2020 broad daylight murder of a minor on a busy Poughkeepsie street;
- An October 24, 2020, gang-related shooting outside of a Miami, Florida, strip club, in which two rival gang members were shot and seriously wounded, requiring one to be airlifted from the scene;
- Multiple shootings and attempted murders, including an August 8, 2018, shooting in Brooklyn, New York; July 5, 2020, gang shootings at a house party in Miami, Florida; and a July 20, 2020, drive-by shooting in New Rochelle, New York;
- A June 12, 2020, gunpoint drug-related robbery in Peekskill, New York; and
- A vicious January 12, 2018, face slashing of a rival gang member on 125th Street in Manhattan.
As for the gang’s sources of revenue, in addition to some more traditional sources such as the proceeds of nationwide narcotics trafficking both inside and outside of prisons, Gorilla Stone is deeply involved in several fraud schemes that are well organized and sophisticated and net a significant amount of money for the gang, including a fraudulent unemployment benefits scheme during the COVID-19 pandemic.
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REID, 51, of New York, New York, and ERSKINE, 40, of Brooklyn, New York, were convicted of one count of racketeering conspiracy, which carries a maximum sentence of life in prison, and one count of narcotics conspiracy, which also carries a maximum sentence of life in prison with a mandatory minimum of 25 years in prison for REID and 10 years in prison for ERSKINE. ERSKINE was also convicted of one count of narcotics distribution, which carries a maximum sentence of 20 years in prison. The defendants were acquitted of a gun possession offense.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
With REID and ERSKINE’s trial convictions, all 21 defendants in the Gorilla Stone case before Judge Halpern have been convicted. 13 defendants have been sentenced and eight defendants, including REID and ERSKINE, have been convicted and are awaiting sentencing. The 13 defendants who have been sentenced by Judge Halpern to date are:
- Godfather DONAVAN GILLARD, a/k/a “Donnie Love,” who was sentenced to 248 months in prison;
- Godmother NAYA AUSTIN, a/k/a “Baby,” who was sentenced to 234 months in prison;
- Godmother BRINAE THORNTON, a/k/a “Luxury,” who was sentenced to 210 months in prison;
- JARRETT CRISLER, Jr., a/k/a “Jayecee,” who was sentenced to 207 months in prison;
- CASWELL SENIOR, a/k/a “Casanova,” who was sentenced to 188 months in prison;
- Godfather BRANDON NIEVES, a/k/a “Untouchable Dot,” who was sentenced to 110 months in prison;
- JAMAL TRENT, a/k/a “Trap Smoke,” who was sentenced to nine years in prison;
- DEZON WASHINGTON, a/k/a “Blakk,” who was sentenced to 97 months in prison;
- ROBERTA SLIGH, a/k/a “Trouble,” who was sentenced to eight years in prison;
- JORDAN INGRAM, a/k/a “Flow,” who was sentenced to eight years in prison;
- STEPHEN HUGH, a/k/a “Chino,” who was sentenced to seven years in prison;
- ISAIAH SANTOS, a/k/a “Zay,” who was sentenced to seven years in prison; and
- SHANAY OUTLAW, a/k/a “Easy,” who was sentenced to three years in prison.
In addition to REID and ERSKINE, who are awaiting sentencing, six additional defendants have pled guilty and are awaiting sentencing: Godfather DESHAWN THOMAS, a/k/a “Don,” Godfather WALTER LUSTER, a/k/a “Shells,” AHMED WALKER, a/k/a “Ammo,” BRANDON SOTO, a/k/a “Stacks,” NEIKO CRUDUP, a/k/a “JhitRilla,” and ROBERT WOODS, a/k/a “Blakk Rob.”
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”) Westchester County Safe Streets Task Force, which is comprised of special agents and task force officers from the FBI, U.S. Probation, New York State Police, New York State Department of Corrections and Community Supervision, Westchester County District Attorney’s Office, Putnam County Sheriff’s Office, Rockland District Attorney’s Office, and the New York City, Westchester County, Yonkers, New Rochelle, Mount Vernon, Greenburgh, White Plains, Peekskill, Ramapo, and Clarkstown Police Departments.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Shiva H. Logarajah, David R. Felton, Kathryn P. Wheelock, and Courtney L. Heavey, with the assistance of Paralegal Specialists Shannon Becker and Liam Ronan, are in charge of the prosecution.
Two Arizona Scammers Charged in Cryptocurrency Investment SchemeRead the Press Release
PHOENIX, Ariz. – On September 19, 2023, a federal grand jury in Phoenix returned a 55-count indictment against Luis Ortega, 42, of Litchfield Park, and Jeremie Sowerby, 45, of Fountain Hills, for Wire Fraud and Transactional Money Laundering.
The indictment alleges that Ortega and Sowerby scammed hundreds of victims out of millions of dollars in a cryptocurrency investment scheme. Under the guise of three entities, Ortega and Sowerby marketed a “risk-free” investment opportunity in “leases” of purported Bitcoin mining machines located abroad (Now Mining); a direct investment in Bitcoin mining machines in Arizona (VIP Mining); and a real estate and technology company through which investors could purchase custom-built container houses using the defendants’ proprietary “Millennium” cryptocurrency. Each entity involved the promise of lavish giveaways and profits that could be accessed and liquidated immediately. In reality, the entire scheme was based on lies. Ortega and Sowerby siphoned the victim funds to bank accounts they controlled and used the money for themselves, including for the purchase of properties and a new vehicle, and extensive cash withdrawals.
A conviction for wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or both. A conviction for transactional money laundering carries a maximum penalty of 10 years in prison and a fine of up to $250,000, or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation and IRS Criminal Investigation are conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
A number of victims have been identified by the FBI and IRS CI. However, there is evidence that victims remain unidentified. Anyone who believes they were defrauded by the defendants in this case should contact the Victim Witness Section at the U.S. Attorney’s Office for the District of Arizona at [email protected] or fill out the questionnaire at this link: https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/seeking-potential-victims-of-jeremie-sowerby-luis-ortega-fraud-schemes. Victims can access information regarding the case status here: https://www.justice.gov/usao-az/us-v-luis-ortega-jeremie-sowerby.
CASE NUMBER: CR-23-01321-PHX-SMB
RELEASE NUMBER: 2023-180_Ortega/Sowerby# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Tulsa Native Sentenced and Ordered to Repay $800,000 for Bank FraudRead the Press Release
A Tulsa native, now residing in Texas, was sentenced today for bank fraud, announced U.S. Attorney Clint Johnson. U.S. District Judge Gregory K. Frizzell sentenced Shane Michael Hannaford, 41, of Prosper, Texas, to 33 months in prison followed by five years of supervised release. Judge Frizzell further ordered Hannaford to pay more than $800,000 in total restitution to eleven victims.
According to court documents, Hannaford was indicted for ten separate counts of bank fraud covering various fraudulent conduct. On Apr. 15, 2022, Hannaford plead guilty to one count of bank fraud and agreed to pay restitution for the entirety of his criminal conduct. As to the one count conviction, Hannaford admitted that he owned and controlled Hannaford Development Group (HDG). Operating under HDG, Hannaford entered into a verbal and written agreement with a lending company to finance construction costs for a church located in Bartlesville, Oklahoma. Hannaford admitted to fraudulently representing to the lender that he intended to repay the monies borrowed, which was false.
Hannaford was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility.
The FBI investigated the case. Assistant U.S. Attorneys David D. Whipple prosecuted the case.
Travel Manager Pleads Guilty to Defrauding Employer Using Hotel Booking SchemeRead the Press Release
RICHMOND, Va. – A Beaverdam woman pleaded guilty today to conducting financial transactions involving the criminal proceeds of her scheme to defraud her employer.
According to court documents, Roxanne Sullivan, 61, was the Travel Manager for a Midwest-based venue preparation company. Sullivan was a full-time, salaried employee, responsible for booking travel and lodging accommodations for the company's workers as they moved from job to job. Sullivan was also a registered travel agent and subscribed to a travel agent commission-processing system. As a travel agent working for clients, Sullivan could earn commissions on the bookings she completed. Commission is a payment remitted to the travel agent by the hotel that consists of a pre-determined portion of the lodging or travel accommodations purchased by the travel agent's client. Because a hotel is required to remit a portion of a booking customer's payment to the travel agent—in effect, reducing the hotel's proceeds for that transaction—a hotel's “commissionable rates" for hotel rooms are often more expensive than “non-commissionable rates," which instead allow the hotel to keep the entirety of the transaction proceeds.
Between 2016 and 2022, Sullivan defrauded her employer by booking "commissionable" rates at hotels, rather than the lower, corporate, but non-commissionable, rates that were otherwise available to her company. She then directed these higher commission payments from the commission-processing system to her bank account. Sullivan deliberately concealed her commissionable rate scheme from her employer, instructing hotel representatives to remove language referencing commissions from her contracts, and doctoring emails to delete references to her commissions. When confronted by federal agents about her scheme, Sullivan lied to the agents about aspects of her scheme.
The total loss attributable to Sullivan's scheme is estimated at $525,000.
Sullivan is scheduled to be sentenced on March 19, 2024. She faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Kareem A. Carter, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea.
Hanover County Sheriff’s Office provided significant assistance in this investigation.
Assistant U.S. Attorney Thomas A. Garnett is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-138.
Three Men Arrested for Complex Bank Fraud and Cryptocurrency Laundering SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrests of ZHONG SHI GAO, a/k/a “George,” NAIFENG XU, a/k/a “Andy,” and FEI JIANG, a/k/a “Jeffrey,” a/k/a “Brother Fei,” for charges in connection with a scheme to steal and launder millions of dollars from financial institutions, which resulted in the theft of over $10 million. GAO and JIANG were arrested this morning and will be presented today before U.S. Magistrate Judge Robert W. Lehrburger. XU was arrested in Oklahoma and will be presented in the U.S. District Court for the Eastern District of Oklahoma. The case is assigned to U.S. District Judge Colleen McMahon.
U.S. Attorney Damian Williams said: “For years, Zhong Shi Gao, Naifeng Xu, and Fei Jiang allegedly participated in a complex scheme to steal over $10 million from nearly a dozen U.S. banks and financial institutions, which they converted into cryptocurrency and moved to foreign cryptocurrency exchanges. These charges should serve as a warning to fraudsters and cybercriminals who think they can turn to cryptocurrency to hide their identities – together with our partner agencies, we will find you and hold you accountable for your crimes.”
FBI Assistant Director in Charge James Smith said: “Gao, Jiang, and Xu were arrested for allegedly stealing and laundering more than $10 million dollars by scamming multiple financial institutions and using foreign cryptocurrency exchanges. Schemes like this harm institutions and make it tougher to report suspicious transfers. The arrests today serve as a warning to anyone thinking of attempting to engage in bank fraud. The FBI will hold you accountable in the criminal justice system.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
Between at least in or about 2018 and in or about 2022, ZHONG SHI GAO, a/k/a “George,” NAIFENG XU, a/k/a “Andy,” and FEI JIANG, a/k/a “Jeffrey,” a/k/a “Brother Fei,” participated in a scheme with others to steal millions of dollars from financial institutions by causing transfers of funds between accounts they controlled, then falsely and fraudulently reporting that the transfers were unauthorized, which induced the financial institutions to credit them the amount of the transfers. The scheme proceeded in the following manner:
First, GAO, XU, JIANG, and other members of the scheme would recruit other people — frequently foreign nationals from China and Taiwan temporarily residing in the United States — to open bank accounts at various bank branches in the New York City metropolitan area and elsewhere. Control over these bank accounts would then be given to GAO, XU, JIANG, and other members of the scheme.
Second, GAO, XU, JIANG, and other members of the scheme would arrange for funds to be deposited and transferred between bank accounts controlled by members of the scheme. Next, GAO, XU, JIANG, and other members of the scheme would cause fraudulent reports to be filed with the banks claiming that these wire transfers were unauthorized. This prompted the banks — both the bank issuing the wire transfer and the bank receiving the wire transfer — to temporarily credit the accounts in the amount of the transferred funds, effectively doubling the amount of money initially deposited into these accounts, even though GAO, XU, JIANG, and other members of the scheme had in fact authorized the transfers and maintained control over the transferred funds all along.
Finally, GAO, XU, JIANG, and other members of the scheme would arrange for the credited funds to be quickly withdrawn as cash or converted into cryptocurrency and moved to foreign cryptocurrency exchanges before the banks realized that the unauthorized-transfer reports were fraudulent. This resulted in GAO, XU, JIANG, and other members of the scheme withdrawing nearly double the money initially deposited while leaving the bank accounts with negative balances.
In total, GAO, XU, JIANG, and other members of the scheme are responsible for over $10 million in actual losses to nearly a dozen banks and financial institutions.
* * *
ZHONG SHI GAO, 31, of Flushing, New York; NAIFENG XU, 37, of Guthrie, Oklahoma; and FEI JIANG, 41, of Brooklyn, New York, are each charged with one count of bank fraud conspiracy, which carries a maximum sentence of 30 years in prison; one count of conspiracy to commit wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison; one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the investigative work of the FBI’s Asian and African Organized Crime Squad. Mr. Williams also thanked the FBI Field Office in Oklahoma City for their assistance in the investigation of this case.
This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Andrew K. Chan, James Ligtenberg, and Ni Qian are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described herein should be treated as an allegation.
The Justice Department’s Bureau of Justice Assistance and National Institute of Corrections Launch First of its Kind Resource to Assist Nation’s Jails in Providing Wrap-Around ServicesRead the Press Release
The Justice Department, through the Bureau of Justice Assistance (BJA), a program office of its Office of Justice Programs, and the National Institute of Corrections (NIC), today announced the launch of the Jails and Justice Support Center, a first of its kind initiative to bring together innovative policies, strategies, promising practices and resources to help in the management of the more than 3,000 jails nationwide.
The center is an online resource that will serve as a national hub for information, training and resources supporting the state and local agencies that operate America’s jails. It will cover the core topics and key areas of policy, practice and culture that support a constitutionally sound foundation for administering a jail, with the ultimate goal of improving outcomes for all who live, work in and visit our nation’s jails.
“Jail administrators and the Justice Department share a common goal: safe jails that honor the dignity, humanity and constitutional rights of everyone — incarcerated people, staff and visitors alike,” said Associate Attorney General Vanita Gupta. “We are excited to make this new resource available to jail administrators and staff across the country as they work to create safe and humane conditions in their facilities.”
At today’s announcement, sheriffs, jail administrators, stakeholders and Justice Department officials described the subject areas the center is focusing on in its initial stages, including screening and assessment, medical and behavioral health and use of force.
BJA and NIC selected CNA’s Center for Justice Research and Innovation to lead the development and delivery of the center. Partners in this effort include the American Jail Association, the National Sheriffs’ Association, the Major County Sheriffs of America, the National Association of Counties and Rulo Strategies.
“The Jails and Justice Support Center is a key component of BJA’s efforts to provide direct, impactful assistance to the criminal justice field,” said BJA Director Karhlton F. Moore. “Sheriffs, jail administrators, county leaders and other stakeholders across the nation will benefit from the information, resources and technical assistance designed to address the specific needs and challenges faced by jails today.”
“The collaboration between the National Institute of Corrections and its federal partners in launching the Jails and Justice Support Center is a significant step towards better serving the nation's sheriffs and jail administrators,” said NIC Director Holly Busby. “It highlights NIC's long-standing dedication to supporting them and their vital role in the criminal justice system. Through this collaborative effort, they can access the resources and assistance needed to manage their jails effectively and promote community safety.”
About the Office of Justice Programs
OJP provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance equity and fairness in the administration of justice, assist victims and uphold the rule of law. More information about OJP and its components can be found at www.ojp.gov.
About the Bureau of Justice Assistance
BJA helps America’s state, local and Tribal jurisdictions reduce and prevent crime, lower recidivism, and promote a fair and safe criminal justice system. BJA provides a wide range of resources — including grants, funding and training and technical assistance — to law enforcement, courts and corrections agencies, treatment providers, reentry practitioners, justice information sharing professionals and community-based partners to address chronic and emerging criminal justice challenges nationwide. To learn more about BJA, visit www.bja.ojp.gov or follow their Facebook (www.facebook.com/DOJBJA) and Twitter (@DOJBJA). BJA is a component of the Justice Department's Office of Justice Programs.
About the National Institute of Corrections
NIC is the only federal agency with a legislative mandate (Public Law 93-41 5) to provide specialized services to corrections from a national perspective. NIC is recognized by other federal agencies for its unique role and quality services. Its leadership is evidenced by the numerous partnerships and interagency agreements targeted to provide correctional services and training. NIC provides practical assistance in planning and implementing improvements at the federal, state and local levels. These efforts contribute to cost efficiency and effectiveness in such areas as planning, design, and operation of new jails, prisons, and community corrections programs, offender workforce development programs, and offender classification and risk assessment. Learn more at www.nicic.gov.
Syracuse Man Sentenced to 151 Months for Possession of Methamphetamine with Intent to DistributeRead the Press Release
SYRACUSE, NEW YORK - Michael Griswold, age 37, of Syracuse, was sentenced yesterday to serve 151 months in federal prison for possession of methamphetamine with the intent to distribute. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
As part of his plea, Griswold admitted that, on November 9, 2022, he possessed over 500 grams of crystal methamphetamine hidden inside a bag in his bedroom closet. Griswold also admitted that he intended to distribute the methamphetamine to others.
United States District Judge Glenn T. Suddaby also ordered that Griswold serve a 5-year term of supervised release following his release from prison.
This case was investigated by the United States Drug Enforcement Administration, with assistance from the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Syracuse Police Department, and the Metro-Jefferson Drug Task Force. Assistant U.S. Attorney Jessica N. Carbone prosecuted the case.
Sussex County Man Sentenced to Three Years in Prison for $2 Million COVID-19 FraudRead the Press Release
NEWARK N.J. – A Sussex County, New Jersey, man was sentenced to 36 months in prison for defrauding several financial institutions and illegally obtaining more than $2 million in COVID-19 funding meant to help small businesses impacted by the pandemic, U.S. Attorney Philip R. Sellinger announced today.
John Jhong, 54, of Sparta, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count each of bank fraud, money laundering, and misuse of a Social Security number. Judge Wigenton imposed the sentence on Nov. 15, 2023, in Newark federal court.
U.S. Attorney Philip R. Sellinger“The defendant took money from government programs that were established to provide financial assistance to Americans who were struggling to cope with the COVID-19 pandemic. The sentence handed down today is his reward for attempting to turn these vital relief programs into his personal ATM. We will continue to work with our law enforcement partners to find and punish those who have tried to take advantage of the federal government.”
“The theft of taxpayer funds is inexcusable,” Tammy Tomlins, Special Agent in Charge of IRS – Criminal Investigation, Newark Field Office, said. “IRS Criminal investigation will hold accountable anyone who steals from government programs intended to help those in need. We remain committed to working with our law enforcement partners to ensure fraudsters are brought to justice. Today’s sentence punishes the defendant’s criminal conduct and should serve as a significant deterrent to others who would selfishly steal from their fellow citizens to unlawfully enrich themselves.”
“Ensuring the Postal Service is not being used to perpetuate frauds against the U.S. Government, or its citizens, is one of our top priorities,” Christoper A. Nielsen, Inspector in Charge, Philadelphia Division, said. “The Postal Inspection Service will continue to investigate CAREs Act fraud schemes through our participation in the NJ COVID-19 Fraud Enforcement Strike Force.”
“Today the defendant in this case was brought to justice for fraudulently obtaining more than $2 million in COVID-19 relief funding that was designed to assist struggling businesses during the pandemic,” Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) saod. “The FDIC OIG will continue to work with our law enforcement partners to investigate and hold accountable those who took advantage of pandemic relief programs and threatened to undermine the integrity of our Nation’s financial institutions.”
“As the nation was struggling with the damaging effects of the pandemic, Mr. Jhong callously attempted to deceive lenders and fraudulently secure Paycheck Protection Program loans by knowingly misusing several Social Security numbers,” Gail S. Ennis, Inspector General for the Social Security Administration, said. “I thank the investigating agencies and the U.S. Attorney’s Office for their efforts in holding Mr. Jhong accountable for these crimes.”
According to documents filed in this case and statements made in court:
Jhong submitted numerous fraudulent loan applications in which he sought over $15 million in federal pandemic aid and illegally obtained $2 million of that money. Jhong used false and fraudulent tax returns, government forms, and other people’s names and documents, including Social Security numbers of individuals who were deceased for over a decade. He spent his ill-gotten gains on personal expenses.
In addition to his prison sentence, Judge Wigenton ordered three years of supervised release and restitution of $2.13 million.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; special agents of U.S. Postal Inspection Service, under the direction of Inspector in Charge Nielsen, Philadelphia Division; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Jose Riera. He also thanked the Sparta Township Police for their assistance.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Economic Crimes Unit in Newark and Trial Attorney Chad M. Davis of the U.S. Department of Justice’s Criminal Division, Money Laundering and Asset Recovery Section.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Stroudsburg Woman Charged with Heroin and Fentanyl TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Melissa Mangione, age 29, of Stroudsburg, PA, was indicted on November 14, 2023, by a federal grand jury for heroin and fentanyl trafficking.
According to United States Attorney Gerard M. Karam, the indictment alleges that from approximately February 2018 until October 27, 2021, Mangione conspired with others to distribute and did distribute heroin and fentanyl at locations in Monroe County, PA.
The matter was investigated by the Federal Bureau of Investigation and its state and local law enforcement partners in Monroe County. Assistant United States Attorney Jeffery St John is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for these offenses is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Stilwell Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Josiah Byron White, age 24, of Stilwell, Oklahoma, was sentenced to 10 years in prison for discharging a firearm in a crime of violence.
The charge arose from investigations by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cherokee County Sheriff’s Office.
On October 12, 2022, White pleaded guilty to an Information on one count of discharging a firearm during and in relation to a crime of violence. According to investigators, White and the victim were visiting a Tahlequah residence on June 6, 2022, when White shot the victim twice in the back with a small caliber firearm and fled the scene of the crime. The crime occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Josiah Byron White will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney James Seaman represented the United States at the sentencing hearing.
Sand Springs Resident Pleads Guilty to Second Degree MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nicholas Lane Spearman, age 28, of Sand Springs, Oklahoma, entered a guilty plea to an Information of one count of Murder in Indian Country – Second Degree, punishable by up to life in prison.
The Information alleged that on or about April 28, 2022, Spearman intentionally killed the victim with malice aforethought.
The charges arose from an investigation involving the City of Stigler Police Department, Oklahoma State Bureau of Investigation, Choctaw Nation Lighthorse Police, and the Federal Bureau of Investigation.
The investigation revealed that Spearman shot and killed the victim with a .22 caliber magnum rifle at victim’s residence in Longtown, Oklahoma. The crime occurred in Pittsburg County, within the boundaries of the Choctaw Nation of Oklahoma Reservation and within the Eastern District of Oklahoma.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, presided over the plea hearing, and ordered the completion of a presentence investigation report. The defendant was remanded to the custody of the U.S. Marshal Service pending sentencing.
San Diego Businessman Pleads Guilty in Multi-Million Dollar Covid-Related FraudRead the Press Release
NEWS RELEASE SUMMARY – November 16, 2023
SAN DIEGO – Thomas Zolezzi of San Diego pleaded guilty in federal court today, admitting that he committed fraud to obtain almost $3 million intended to help those affected by the COVID-19 pandemic.
In his plea agreement, Zolezzi admitted he submitted five loan applications containing false statements to trick lenders into providing the relief funds. He used the borrowed funds to pay his personal expenses. As part of his guilty plea, Zolezzi agreed to pay restitution of $700,884.75 to the Small Business Administration (“SBA”) and $2,238,910.24 to Capital Plus Financial.
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020, to provide over $2 trillion of economic relief to workers, families, small businesses, industry sectors and other levels of government that were hit hard by the public health crisis created by COVID-19. The CARES Act authorized the SBA to temporarily guarantee loans under a new loan program titled the Paycheck Protection Program (“PPP”).
Under the PPP, financial institutions made loans to qualified borrowers, and the SBA backed the loans. Borrowers agreed to use the PPP loans to cover payroll costs and certain eligible nonpayroll costs. In some cases, the borrower could apply for forgiveness of the loan. If approved for forgiveness, the SBA paid the loan for the borrower.
The CARES Act also authorized the SBA to provide Economic Injury Disaster Loans (“EIDL”). Borrowers agreed to use EIDL funds solely as working capital to alleviate economic injury caused by the disaster. Working capital expenses included payroll expenses, sick leave, production costs, and ordinary business obligations, like debts, rent, and mortgage payments.
According to court records, Zolezzi applied for and received three PPP loans and two EIDLs. Zolezzi’s loan applications, which started in May 2020, falsely overstated the number of his employees, his payroll amount, and his annual revenue to fraudulently obtain $2,939,794.99 in loans.
Sentencing is scheduled for February 5, 2024, at 9 a.m. before U.S. District Judge Anthony J. Battaglia.
This case is being prosecuted by Assistant U.S. Attorney Christopher Alexander.
DEFENDANT Case Number 23-cr-02352 -AJB
Thomas Zolezzi Age: 61 San Diego, CA
SUMMARY OF CHARGES
Wire Fraud, a felony, in violation of Title 18, United States Code, Section 1343
Maximum Penalty: Twenty years in prison and a fine of $250,000
AGENCIES
Homeland Security Investigations, Immigration and Customs Enforcement
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.
Romanian citizen indicted for illegally crossing into the U.S. from Canada with six other Romanian nationals in the carRead the Press Release
Seattle – A 48-year-old citizen of Romania, who has no legal status in the U.S., was indicted this week for thirteen federal crimes for his attempt to smuggle six other Romanian nationals into the U.S., announced Acting U.S. Attorney Tessa M. Gorman. Ionel Niculae, aka Adrian Dumitrescu, was taken into custody near Lynden, Washington, at an accident scene where the car he was driving flipped over, badly injuring three passengers.
“We are responding to an increase in dangerous smuggling events on our northern border,” said Acting U.S. Attorney Tessa M. Gorman. “This case illustrates how these illegal smuggling efforts endanger not only those being smuggled into the U.S., but also others traveling near the border. The driver who was hit by the fleeing SUV was injured and is still recovering from the crash.”
“We have seen an uptick in the number of human smuggling events here in Washington State along our northern border with Canada,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI will continue to prioritize investigations into these organizations using dangerous tactics that jeopardize not only the lives of the individuals being smuggled, but also the lives of those in our communities who may be in danger by this reckless behavior.”
The indictment charges Niculae with one count of improper entry by an undocumented individual, three counts of bringing an undocumented individual into the United States at a place other than a designated Port of Entry and causing serious bodily injury, three counts of bringing an undocumented individual into the United States at a place other than a designated Port of Entry, and six counts of aiding and abetting the improper entry of an undocumented individual.
According to the criminal complaint, the Jeep Niculae was driving was seen crossing into Canada illegally three days before the September 17, 2023, accident. On the day of the crash, Canadian Border officers obtained images of the Jeep traveling near the Canada/U.S. Border and, moments later, a camera on the U.S. side picked up images of the Jeep crossing the border via some agricultural fields near Lynden.
Border Patrol agents set out to find the Jeep and were quickly alerted by the Sumas Police Department that the Jeep was involved in a crash with another SUV. The Jeep had flipped and three of the six passengers in the car had broken bones – two had broken pelvises and one had a broken leg. Niculae was not injured.
“Due to the exceptional vigilance and response of our Border Patrol Agents, Blaine Sector agents were able to assist with the accident scene and link the accident to a recent vehicle that illegally crossed the border smuggling several Romanian citizens. Events like this highlight the disregard smugglers have for human life,” said Chief Rosario Vasquez, Blaine Sector Chief Patrol Agent.
None of the people in the Jeep were legally present in the United States. Niculae possessed drivers licenses for both Washington and California and appears to have been residing in Southern California. He has been detained at the Federal Detention Center at SeaTac since being charged by criminal complaint on September 20, 2023.
Bringing an undocumented individual into the U.S. at a place other than a designated Port of Entry resulting in serious bodily injury is punishable by up to 20 years in prison. Bringing an undocumented individual into the U.S. at a place other than a designated Port of Entry is punishable by up to ten years in prison. Aiding and abetting improper entry by an undocumented individual is punishable by up to six months in prison.
The case is being investigated by Homeland Security Investigations (HSI) and U.S. Border Patrol with assistance from the Washington State Patrol and Sumas Police Department.
The case is being prosecuted by Assistant United States Attorney Sanaa Nagi.
Ringleader sentenced for illegal purchases of firearms trafficked to MexicoRead the Press Release
HOUSTON – A 34-year-old Houston resident and felon has been ordered to federal prison for illegal purchase and trafficking of firearms, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury convicted Jose Abraham Nicanor May 11 on all 13 counts as charged following a three-day trial. He was also convicted for possessing a firearm after a previous felony for armed robbery.
U.S. District Judge Kenneth M. Hoyt has now ordered Nicanor to serve 60 months in federal prison. At the hearing, the court heard evidence that showed Nicanor aggregated the firearms shipment to Mexico. In handing down the sentence, the court noted Nicanor’s conduct amounted to more than mistakes, but to a pattern of choices to violate the law.
“Stemming the illegal river of firearms into Mexico, a river stained blood red, deprives Mexican cartels of their tools of violence,” said Hamdani. “Cartels and other transnational criminal organizations are a national security threat, and my office, with its fearless prosecutors, will always be committed to aggressively pursuing those who exploit American gun laws so that weapons of war don’t reach violent criminals in Mexico and beyond.”
“Firearms trafficking and straw purchasing are not victimless crimes,” said acting Special Agent in Charge Noel Rangel of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “These acts are illegal and puts firearms in the hands of violent criminals. By focusing on firearms trafficking and straw purchasing, ATF keeps guns out of the hands of criminal trigger pullers, thereby reducing violent crime.”
At trial, the jury heard that Nicanor recruited two straw purchasers to buy high-caliber rifles that drug trafficking organizations regularly seek.
Testimony and evidence showed that a total of 94 firearms were attributable to Nicanor’s straw purchasing group. Mexican authorities later recovered some of the firearms in the possession of drug trafficking organizations.
The jury also heard that Nicanor rented a machine gun at a local gun range and posted a video of himself with the firearm to his social media. As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law.
Nicanor was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The straw purchasers – James Paxton Jefferson, 34, Alejandro Garcia, 33, both of Houston – previously pleaded guilty and have been sentenced.
ATF conducted the investigation. Mexican authorities also provided assistance. Assistant U.S. Attorneys Lisa Collins and Stuart Tallichet prosecuted the case.
Richmond County man sentenced to federal prison for persuading child to produce sexually explicit imagesRead the Press Release
AUGUSTA, GA: A Richmond County man has been sentenced to 15 years in prison after pleading guilty to persuading a child to produce sexually explicit images.
Tibius Edwards, 26, of Augusta, was sentenced to 180 months in prison after pleading guilty to Production of Child Pornography, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Edwards to register as a sex offender and to serve 20 years of supervised release upon completion of his prison term.
There is no parole in the federal system.
“There is an epidemic in this country of adult predators contacting and befriending children online and persuading them to produce sexually explicit images of themselves,” said U.S. Attorney Steinberg. “The vigilance of a caring adult rescued the victim from further harm, and this sentence ensures Tibius Edwards will no longer be a danger to the community.”
As described in court documents and testimony, FBI agents interviewed Edwards in 2019 after receiving a minor’s cell phone from the child’s mother. Images discovered on the phone led investigators to Edwards, who had persuaded the minor to produce and provide sexually explicit images and share them with Edwards via an online messaging application.
“The defendants’ heinous behavior is deserving of a lengthy prison sentence to ensure he cannot inflict further harm on other victims,” said Justin Garrick, Acting Supervisory Senior Resident Agent in FBI Atlanta’s Augusta office. “This case shows how important it is that we continue to target and prosecute sexual predators who victimize children.”
The case was investigated by the FBI and the Department of the Army Criminal Investigation Division, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Jason W. Blanchard.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Registered Sex Offender Sentenced to Federal Prison for Child PornographyRead the Press Release
PENSACOLA, FLORIDA – Harold Lavern Benedict, 73, of Crestview, Florida, was sentenced to 19.5 years in federal prison for receipt and attempted receipt of child pornography. In imposing the sentence, the Court cited the need to protect the public when it sentenced the defendant above the required 15-year mandatory minimum. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Protecting innocent children from sexual predators remains one of our highest priorities,” said U.S. Attorney Coody. “I commend our law enforcement partners and prosecutors who work tirelessly to identify these predators and bring them to justice so that they may never exploit a child again. Due to their collective efforts, our community is safer, and this repeat offender is exactly where he belongs – back behind bars.”
On June 27, 2022, a father was at Yellow River Park with his children in Milligan, Florida, and purchased gasoline for an older man who was stranded. The older man requested the father’s address and phone number to send him money, and when the father declined, the older man, who claimed to refurbish computers for a living, offered the father a laptop for his children. Upon arriving home, the father vetted the computer prior to giving it to his children, only to discover it contained child pornography. The father immediately contacted the Okaloosa County Sheriff’s Office (OSCO) and provided the laptop. Through the investigation, law enforcement was able to link a phone number, provided by the older man, to Harold Lavern Benedict, a local registered sex offender due to prior convictions for Attempted Sexual Battery on a Child Under 12, and Lewd and Lascivious Act. OCSO Investigators interviewed Benedict on September 2, 2022, and he admitted to using foreign internet web browsers to obtain child pornography at least once per month. Law enforcement obtained search warrants for several of Benedict’s electronic devices and determined that Benedict possessed over 700 images of child pornography. Benedict was engaged in such conduct from at least 2019 through 2023.
“This is a case where all the pieces fell into place to expose the ongoing disturbing and criminal conduct of this individual,” said Okaloosa County Sheriff Eric Aden. “Once again, due to the dedication and expertise of our investigators and federal partners with the U.S. Department of Homeland Security and the U.S. Attorney’s Office, another child pornography consumer will be taken off our streets.”
“Sexual predators who repeatedly victimize children have no place in our society or in our communities,” said Homeland Security Investigations (HSI) Tallahassee Assistant Special Agent in Charge Nicholas Ingegno. “Thanks to our outstanding partnership with Okaloosa County Sheriff’s Office, we were able to stop another pedophile from targeting our children.”
Benedict’s prison sentence will be followed by a Lifetime of supervised release. Benedict will continue to be required to register as a sex offender and be subject to all sex offender conditions.
This conviction was the result of an investigation conducted by the Okaloosa County Sheriff’s Office and the Homeland Security Investigations. Assistant United States Attorney Jennifer Callahan 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 and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it 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.projectsafechildhood.gov.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Providence Man Admits to Trafficking FentanylRead the Press Release
PROVIDENCE, RI – A Providence man who was found to be in possession of nearly three kilograms of fentanyl pills and fentanyl powder when members of the Rhode Island DEA Drug Task Force executed a court-authorized search of his residence in June 2021, pleaded guilty today in federal court to a charge of possession with intent to distribute fentanyl, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, during an investigation into the trafficking of narcotics in Providence, members of the DEA Drug Task Force learned that Giovanny Toro Gallego, 47, was associated with a known drug trafficker. On June 24, 2023, members of the DEA Task Force executed a court-authorized search of Toro Gallego’s residence and seized approximately 2.8 kilograms of fentanyl in the form of pills and powder; two pill presses, designed to manufacture pills containing fentanyl; and punch die for marking pills.
Toro Gallego is scheduled to be sentenced on February 15, 2024. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney G. Michael Seaman
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; Rhode Island State Police; the Cranston, Newport, Pawtucket, Providence, Warwick, Woonsocket, and Amtrak Police Departments.
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Pine Bush Man Sentenced to 10 Years in Prison for Distribution and Receipt of Child PornographyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ZACHARY HUEBSCH was sentenced to 10 years in prison by U.S. District Judge Kenneth M. Karas for distribution and receipt of child pornography. The sentencing today followed HUEBSCH’s guilty plea on May 24, 2023.
U.S. Attorney Damian Williams said: “The defendant’s conduct was abhorrent and illustrates the danger that online predators pose to vulnerable members of our community, our children. As today’s sentencing demonstrates, we will use all of the law enforcement tools available to us to prosecute and punish those who exploit children.”
According to documents filed in this case and statements made in related court proceedings:
HUEBSCH communicated on Discord, a social media application, with a 12-year-old minor (“Victim-1”) in July and August of 2021. Using the Discord username “yourdarkmaster2,” HUEBSCH instructed Victim-1 to engage in various sexual acts and to perform those acts on live-streaming video. HUEBSCH preserved sexually explicit images of Victim-1 from those live-streaming sessions. HUEBSCH also discussed meeting with Victim-1 in person to engage in sexual activity, and he sent her a screenshot of a map of a park near Victim-1’s house with a suggested location at which to meet.
The investigation concerning HUEBSCH began following a report from Victim-1’s mother concerning the mother’s discovery of communications on Victim-1’s phone that concerned her.
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In addition to the prison term, HEUBSCH, 25, of Pine Bush, New York, was sentenced to 10 years of supervised release.
Mr. Williams praised the efforts of the Federal Bureau of Investigation, the Hudson Valley Safe Streets Task Force, the Town of Crawford Police Department, and the Morris County Prosecutor’s Office in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Marcia S. Cohen is in charge of the prosecution.
Philadelphia Resident Sentenced to 46 Months in Prison on Drug Trafficking ConvictionRead the Press Release
PITTSBURGH, PA – A resident of Philadelphia, Pennsylvania, has been sentenced in federal court to 46 months of imprisonment followed by three years of supervised release on his conviction for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Yusuf Adekunle, age 29.
According to information presented to the court, Adekunle and three other individuals chartered a private plane and transported six kilograms of cocaine from Houston to Pittsburgh International Airport. Investigators obtained a search warrant for the plane and seized the cocaine from two pieces of luggage. The court was further advised that the defendant obtained and distributed between 20 kilograms and 40 kilograms of marijuana between July of 2020 and August of 2021. Agents seized approximately 700 grams of marijuana and a firearm during a search of Adekunle’s residence.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department for the investigation leading to the successful prosecution of Adekunle.
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.
Pennsylvania Guardian Gloria Byars & Her Co-Conspirator Found Guilty of Stealing from Elderly WardsRead the Press Release
PHILADELPHIA –United States Attorney Jacqueline C. Romero announced that Gloria Byars, 62, of Aldan, PA and Carlton Rembert, 69, of Hampton, VA were both found guilty for their roles in a scheme to defraud elderly, incapacitated people of over $1 million. Byars entered a guilty plea on the eve of trial, pleading guilty to conspiracy, wire fraud, money laundering, and tax fraud. Her co-conspirator and brother Carlton Rembert proceeded to trial and after a four-day trial, a jury found Rembert guilty of conspiracy, bank fraud, and wire fraud.
Between 2012 and 2018, Byars and her co-conspirators stole the life savings from dozens of incapacitated wards while Byars served as their court-appointed guardian. Prior to operating her own guardianship company, Byars was an office manager for a guardianship company in Delaware County that was appointed to care for wards in Pennsylvania. As office manager, and then as guardian herself through her own company, Byars had unfettered access to wards’ property including bank accounts, pensions, real estate, retirement accounts, and other assets. Byars stole money from the wards’ bank accounts by writing unauthorized checks to companies she controlled, or to shell companies controlled by her co-conspirators, Rembert and Alesha Mitchell. Rembert and Mitchell assisted Byars in the theft by opening bank accounts in their home state of Virginia in the names of shell companies purporting to be medical services companies. Rembert and Mitchell deposited dozens of checks containing stolen ward money into their shell business bank accounts, withdrew over $500,000 in cash, and sent most of the stolen proceeds back to Byars, after keeping a share of the stolen ward money for themselves. Byars spent the stolen ward money on vacations, clothing, vehicles, gifts, and parties.
As part of Byars’ plea agreement, she agreed to forfeit 36 gold Krugerrand coins, valuable gold coins first minted in South Africa in the 1960s to introduce the country’s gold supply onto the world market. Byars stole several Krugerrand coins from the bank safe deposit box of one of her wards. Byars also stole over $756,000 from a retired federal employee’s Thrift Savings Plan. In total, Byars and her co-conspirators stole well over $1 million from at least 120 incapacitated people in the Eastern District of Pennsylvania.
Byars and Rembert face the following maximum possible sentences. For conspiracy to commit bank fraud and for bank fraud, the maximum sentence is 30 years’ imprisonment and a $1,000,000 fine. For wire fraud, the maximum sentence is 20 years’ imprisonment and a $250,000 fine. Byars also faces a maximum sentence of 20 years’ imprisonment and a $500,000 fine for money laundering and for filing a false tax return, the maximum sentence is 3 years’ imprisonment and a $250,000 fine.
“Byars and Rembert’s actions caused significant financial and emotional harm to their victims,” said U.S. Attorney Romero. “Fraud, particularly at the expense of vulnerable people, will not be tolerated.”
“Gloria Byars was entrusted with managing the assets of elderly folks unable to do so themselves,” said Richard Langham, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Instead, she abused her role as a guardian, poaching the nest eggs of these vulnerable wards, figuring they’d never even know. The FBI takes great satisfaction in bringing Byars and her co-conspirators to justice and preventing them from doing more harm. Elder fraud and abuse are simply unconscionable. If you think you’re being victimized like this or know someone who is, please reach out to the FBI – anonymously, if you like.”
“IRS-Criminal Investigation is committed to aggressively investigating individuals who engage in money laundering, tax fraud, or other types of white-collar crimes,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “We, along with our law enforcement partners and the Department of Justice will continue to work to ensure that individuals who attempt to hide their criminal involvement will be held accountable.”
“The conviction of Gloria Byars and Carlton Rembert demonstrates the shared commitment of the Delaware County District Attorney’s Office and United States Attorney’s Office in pursuing justice for our most vulnerable residents. I want to thank the United States Attorney’s Office and Federal Bureau of Investigation for working with us on this important guardianship fraud prosecution. I would also like to thank Douglas Rhoads, Deputy District Attorney of Special Investigations, and Detective Edward Rosen of our Criminal Investigation Division for their work on this matter,” said Delaware County District Attorney Jack Stollsteimer.
The case was investigated by the Federal Bureau of Investigation, Delaware County District Attorney’s Office, Criminal Investigation Division, and the Internal Revenue Service, Criminal Investigation and is being prosecuted by Assistant United States Attorneys Tiwana Wright and Samuel Dalke.
Pearl River Community Man Pleads Guilty to Habitual Domestic ViolenceRead the Press Release
Jackson, Miss. – A Pearl River Community man pled guilty to habitual domestic violence.
According to court documents and statements made in open court, on September 21, 2019, in the Pearl River Community of the Mississippi Band of Choctaw Indians, Eric Shane Dan 47, using his fist, struck his spouse causing a laceration to her face which required medical treatment. Dan was previously convicted of domestic assault on two separate occasions.
Dan is scheduled to be sentenced on February 13, 2024, and faces a maximum penalty of ten years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation made the announcement.
The Federal Bureau of Investigation and Choctaw Police Department investigated the case.
Assistant U.S. Attorney Bert Carraway is prosecuting the case.
Orlando Man Sentenced to More Than 24 Years for Receiving and Possessing Child Sexual Abuse MaterialsRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced William Ross King III (55, Orlando) to 24 years and 5 months in federal prison for receipt and possession of child sexual abuse materials. King had pleaded guilty on August 3, 2023.
According to court documents, on October 14, 2022, after receiving a CyberTip, the Orange County Sheriff’s Office executed a search warrant at an Orlando hotel room occupied by King and seized a laptop belonging to King. Subsequent forensic analyses of the laptop revealed 42 images and 80 videos of child sexual abuse material (CSAM). King admitted to downloading and viewing the CSAM. These images and videos included sadistic and masochistic conduct and other violent sexual acts against children, toddlers, and infants.
“This sentence is proof that this deviant’s perverse behavior of victimizing children will not be tolerated,” said Homeland Security Investigations (HSI) Orlando Assistant Special Agent in Charge David Pezzutti. “Thanks to this CyberTip, and the Orange County Sheriff’s Office, we were able to remove this predator from continuing victimize these children over and over.”
This case was investigated by Homeland Security Investigations (HSI) and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Courtney Richardson-Jones.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Orlando Man Sentenced to 30 Months in Federal Prison for Tax FraudRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Wendel Algarin to 30 months in federal prison for conspiring to defraud the Internal Revenue Service (IRS). Algarin had pleaded guilty on August 15, 2023.
According to court documents, between 2012 and 2019, Algarin operated a scheme to assist various subcontractors in the evasion of payroll taxes and workers’ compensation insurance premiums. Algarin conspired with the subcontractors to pay their undocumented construction workers “off the books.” He facilitated the offense by operating three shell companies that he allowed subcontractors to list as their employees’ employers. In return for his assistance with the scheme, Algarin was paid fees of nearly $2 million. He used the funds to live a lavish lifestyle such as by purchasing multiple luxury automobiles. By operating the scheme, Algarin defrauded the United States out of more than $3.5 million in tax revenues.
“Mr. Algarin devised a plan to defraud the American taxpayer by establishing shell companies in the construction sector and evading employment taxes. Additionally, he employed undocumented workers, which harmed the workers’ compensation insurance industry,” said Tara K. Reed, IRS-Criminal Investigation (CI) Acting Special Agent in Charge. “Today’s sentencing demonstrates that IRS-CI is dedicated to investigating and building a just and impartial tax system in which all businesses can operate.”
This case was investigated by Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Operator of durable medical equipment companies admits role in $11 million dollar kickback schemeRead the Press Release
ATLANTA – A Texas man and owner of two durable medical equipment companies has pleaded guilty to conspiracy for his role in a scheme to pay illegal kickbacks, resulting in more than $20 million submitted in claims to, and $11 million in payment from, Medicare.
“Medicare is a vital program that exists to assist our most vulnerable citizens,” said U.S. Attorney Ryan K. Buchanan. “Our office will continue to prosecute those who exploit this institutional safety net for personal profit at the expense of patients and taxpayers.”
“When health care companies try to boost their profits through kickbacks arrangements, they compromise the medical system and increase health care costs for everyone,” says Sean Burke, Assistant Special Agent in Charge of FBI Atlanta.” The FBI is committed to preventing illegal financial relationships that undermine the integrity of our public healthcare programs.”
“Kickbacks impose hidden costs on the health care system and can compromise medical decision-making,” said Tamala Miles, Special Agent in Charge with the U.S. Department of Health and Human Services Office of the Inspector General. “Working tirelessly with our law enforcement partners, HHS-OIG will continue to combat the waste of valuable taxpayer dollars and protect the integrity of federal health care programs.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between at least in or about June 2016 and February 2019, Simon Orobor owned and operated Devotion Medical Supply, Inc (“Devotion”) and Durable Medical Supply, Inc. (“Durable”), which provided durable medical equipment such as knee, back, shoulder, and wrist braces. Orobor, through another entity called Digital Interventions, LLC, obtained access to thousands of Medicare beneficiaries by paying, on a weekly basis, kickbacks to Individual 1 and Company 1 in exchanged for signed doctors’ orders for braces. Orobor and Individual 1 disguised the nature and source of these kickbacks by designating the payments as marketing expenses, entering into sham contracts, and generating or causing the generation of fraudulent invoices.
In total, Orobor, through Devotion and Durable, used the doctors’ orders obtained through kickbacks to submit claims to Medicare in the approximate amount of $20,555,772 and received Medicare reimbursement in the approximate amount of $11,447,961.
Simon Orobor, 60, of Houston, Texas pleaded guilty to one count of conspiracy to pay health care kickbacks. Sentencing is scheduled for February 15, 2024 before U.S. District Judge Mark H. Cohen.
This case is being investigated by the Federal Bureau of Investigation and Department of Health and Human Services Office of the Inspector General.
Assistant U.S. Attorney David A. O'Neal 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.
Operator of Central California Bio-Lab Indicted for Distributing Adulterated and Misbranded COVID-19 Tests and Lying to AuthoritiesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Jia Bei Zhu, aka Jesse Zhu, Qiang He, and David He, 62, a citizen of China who formerly resided in Clovis, charging him with distributing adulterated and misbranded medical devices in violation of the federal Food, Drug, and Cosmetic Act and for making false statements to the Food and Drug Administration (FDA), U.S. Attorney Phillip A. Talbert announced.
According to court documents, between January 2020 and March 2023, through the companies Universal Meditech Incorporated (UMI) and Prestige Biotech Incorporated (PBI), Zhu sold hundreds of thousands of COVID-19 test kits to companies throughout the United States. UMI and PBI were based in Fresno and Reedley and did not obtain pre-market approval, pre-market clearance, emergency use authorization, or other applicable exemption from the FDA as was required. UMI and PBI received millions of dollars for the sales of the test kits.
When questioned by FDA officials, Zhu made several false statements to them, including that (1) his name was Qiang “David” He, (2) he was hired by UMI as a COVID-19 consultant in 2021, (3) he was hired by PBI just a couple of weeks prior to meeting with the FDA to communicate with government agencies on PBI’s behalf, and (4) he did not know anything about the manufacturing or distribution histories for UMI or PBI.
This case is the product of an investigation by the FDA Office of Criminal Investigations with assistance from the Federal Bureau of Investigation and the California Department of Public Health – Food and Drug Branch. Assistant U.S. Attorneys Joseph D. Barton, Arelis M. Clemente, and Henry Z. Carbajal III are prosecuting this case.
If convicted, Zhu faces a maximum statutory penalty of three years in prison and a $250,000 fine for the adulterated and misbranding of medical devices charges, and five years in prison and a $250,000 fine for the false statements charge. 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Olanta, PA Resident Sentenced to 60 Months in Prison for Conviction of Violating Federal Narcotics and Firearms LawsRead the Press Release
PITTSBURGH, PA – A resident of Olanta, Pennsylvania, has been sentenced in federal court to 60 months of imprisonment followed by three years of supervised release on his conviction for violating federal narcotics and firearms laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Brent Shaffer, age 39.
According to information presented to the court, Shaffer received parcels that were shipped from California to the Western District of California containing a total of between 1.5 kilograms and 5 kilograms of methamphetamine. Investigators searched Shaffer’s residence on August 31, 2021, pursuant to a federal search warrant and seized over 200 grams of methamphetamine and three firearms.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department for the investigation leading to the successful prosecution of Shaffer.
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.
Norfolk Hospital Agrees to Pay Civil Penalty for Alleged Violations of the Controlled Substances ActRead the Press Release
NORFOLK, Va. – Children’s Hospital of the King’s Daughters, Inc. (CHKD), located in Norfolk, agreed to pay $68,400 to settle civil penalty claims for alleged record-keeping violations associated with controlled substances.
The government alleged that CHKD failed to comply with various recordkeeping requirements under the Controlled Substances Act (CSA) that are mandated for DEA registrants who handle controlled substances. The government alleged that between March 29, 2021, and December 22, 2021, CHKD had packages of compounded prescription drugs delivered to its receiving warehouse, a location not registered with the Drug Enforcement Administration (DEA). This allegedly includes a delivery of 200 one-milliliter fentanyl syringes (10mcg/ml) that CHKD cannot show was delivered to its registered pharmacy location or otherwise account for.
The recordkeeping requirements under the CSA are designed to protect the health and safety of the public from dangers posed by highly addictive or dangerous controlled substances, such as opioids, being diverted into the illicit market, while also ensuring that patients have access to pharmaceutical controlled substances for legitimate medical purposes. In a separate agreement with the DEA Diversion Group, CHKD agreed to take measures to prevent such conduct from occurring in the future.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the DEA, Washington Division, Norfolk District Office.
The matter was handled by Assistant U.S. Attorney Clare Wuerker.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
Ninth Defendant Convicted of Federal Conspiracy Against Rights and Freedom of Access to Clinic Entrances Act (FACE Act) Offenses for 2020 Washington, D.C., Clinic Invasion and BlockadeRead the Press Release
A Massachusetts woman was found guilty today of federal civil rights conspiracy and violation of the Freedom of Access to Clinic Entrances Act (FACE Act).
Paula “Paulette” Harlow, 75, of Kingston, was convicted following a bench trial. All nine defendants have been convicted of federal conspiracy against rights and FACE Act offenses following three separate trials in connection with an Oct. 22, 2020, blockade of a Washington, D.C., area reproductive health clinic. On Aug. 29, a jury convicted defendants Lauren Handy, John Hinshaw, Heather Idoni, William Goodman and Herb Geraghty. On Sept. 15, a separate jury convicted defendants Jonathan Darnel, Jean Marshall and Joan Bell. On March 1, a tenth defendant, Jay Smith, pleaded guilty to a felony FACE Act offense.
“Violence and physical obstructions that interfere with access to reproductive health clinics violate the law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The convictions in this case send a strong message that such criminal conduct against reproductive health care providers and patients will not be tolerated, and the perpetrators will be held accountable. The Justice Department stands ready to protect both those who provide and those who seek access to safe and legal reproductive health care.”
“Our Constitution and laws protect many rights – to protest, to debate, to advocate for different laws. But no one is entitled to deprive other people of their civil rights. That’s a crime,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “With locks, with chains, with violence, these defendants conspired to prevent fellow citizens from exercising their rights to receive and to provide reproductive health care. As these verdicts show, our city will not tolerate that, and our department will ensure justice is done.”
“FACE Act violations such as this one are not taken lightly – these are serious crimes that endanger people’s physical safety and can be traumatizing for patients and staff,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our partners will always work to protect every American’s access to reproductive health care services.”
“The First Amendment protects Americans’ right to peacefully express their opinions — not intimidate, threaten or interfere with those who are exercising their civil rights,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “The FBI will continue to investigate FACE Act violations to ensure that patients and providers can receive or provide lawful reproductive health care without the threat of violence or intimidation.”
Evidence presented at trial established that the defendants executed a clinic blockade planned by the group’s leaders, Handy and Darnel. The defendants used social media, text messages and telephone calls to organize the blockade, and several defendants traveled from northeast and midwestern states to participate in the clinic invasion. Prior to the blockade, the defendants met with other co-conspirators to formulate their tactics, which included making a fake patient appointment to ensure the group’s entry into the clinic, using chains and locks to barricade the facility and passively resisting arrest to prolong the obstruction. The clinic invasion was advertised on social media as an “historic” event and was livestreamed on Facebook.
At the outset of the invasion, the defendants forced their way into the clinic, injuring a clinic nurse. The blockade forced one patient to climb through a receptionist window to access the clinic, while another was denied entry as she lay in physical distress in the hallway outside the clinic.
On Aug. 7, Smith was sentenced to 10 months in prison and 36 months of supervised release following his guilty plea. The remaining defendants, including Harlow, who were convicted following the three trials face up to 11 years in prison, three years of supervised release and a fine up to $250,000 each. Those sentencing dates are yet to be determined.
The FBI Washington Field Office investigated the case.
Attorneys from the Civil Rights Division and U.S. Attorney’s Office for the District of Columbia prosecuted the case.
Ninth Defendant Convicted of Federal Conspiracy Against Rights and Freedom of Access to Clinic Entrances Act (FACE Act) Offenses for 2020 Washington, D.C., Clinic Invasion and BlockadeRead the Press Release
WASHINGTON – A Massachusetts woman was found guilty today of federal civil rights conspiracy and violation of the Freedom of Access to Clinic Entrances Act (FACE Act).
Paula “Paulette” Harlow, 75, of Kingston, was convicted following a bench trial. All nine defendants have been convicted of federal conspiracy against rights and FACE Act offenses following three separate trials in connection with an Oct. 22, 2020, blockade of a Washington, D.C., area reproductive health clinic. On Aug. 29, a jury convicted defendants Lauren Handy, John Hinshaw, Heather Idoni, William Goodman and Herb Geraghty. On Sept. 15, a separate jury convicted defendants Jonathan Darnel, Jean Marshall and Joan Bell. On March 1, a tenth defendant, Jay Smith, pleaded guilty to a felony FACE Act offense.
“Violence and physical obstructions that interfere with access to reproductive health clinics violate the law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The convictions in this case send a strong message that such criminal conduct against reproductive health care providers and patients will not be tolerated, and the perpetrators will be held accountable. The Justice Department stands ready to protect both those who provide and those who seek access to safe and legal reproductive health care.”
“Our Constitution and laws protect many rights – to protest, to debate, to advocate for different laws. But no one is entitled to deprive other people of their civil rights. That’s a crime,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “With locks, with chains, with violence, these defendants conspired to prevent fellow citizens from exercising their rights to receive and to provide reproductive health care. As these verdicts show, our city will not tolerate that, and our department will ensure justice is done.”
“FACE Act violations such as this one are not taken lightly – these are serious crimes that endanger people’s physical safety and can be traumatizing for patients and staff,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our partners will always work to protect every American’s access to reproductive health care services.”
“The First Amendment protects Americans’ right to peacefully express their opinions — not intimidate, threaten or interfere with those who are exercising their civil rights,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “The FBI will continue to investigate FACE Act violations to ensure that patients and providers can receive or provide lawful reproductive health care without the threat of violence or intimidation.”
Evidence presented at trial established that the defendants executed a clinic blockade planned by the group’s leaders, Handy and Darnel. The defendants used social media, text messages and telephone calls to organize the blockade, and several defendants traveled from northeast and midwestern states to participate in the clinic invasion. Prior to the blockade, the defendants met with other co-conspirators to formulate their tactics, which included making a fake patient appointment to ensure the group’s entry into the clinic, using chains and locks to barricade the facility and passively resisting arrest to prolong the obstruction. The clinic invasion was advertised on social media as an “historic” event and was livestreamed on Facebook.
At the outset of the invasion, the defendants forced their way into the clinic, injuring a clinic nurse. The blockade forced one patient to climb through a receptionist window to access the clinic, while another was denied entry as she lay in physical distress in the hallway outside the clinic.
On Aug. 7, Smith was sentenced to 10 months in prison and 36 months of supervised release following his guilty plea. The remaining defendants, including Harlow, who were convicted following the three trials face up to 11 years in prison, three years of supervised release and a fine up to $250,000 each. Those sentencing dates are yet to be determined.
The FBI Washington Field Office investigated the case, with valuable assistance from the Metropolitan Police Department.
Attorneys from the Civil Rights Division and U.S. Attorney’s Office for the District of Columbia prosecuted the case. The U.S. Attorneys’ Offices for the District of New Jersey, District of Massachusetts, Eastern District of Michigan, Eastern District of New York, and Southern District of New York; and FBI Field Offices in Pittsburgh, Newark, New York City, Boston, and Detroit provided valuable assistance.
Newton Man Sentenced for Unlawful ReentryRead the Press Release
BOSTON – A Newton man was sentenced yesterday in federal court in Boston for illegally reentering the United States after being deported.
Franklin Alcantara-Lorenzo, 36, was sentenced by U.S. District Court Judge Leo Sorokin to one year and one day in prison, followed by three years of supervised release. On Oct. 16, 2023, Alcantara-Lorenzo pleaded guilty to one count of unlawful reentry of a deported alien.
Alcantara-Lorenzo, a citizen on the Dominican Republic, was deported from the United States in July 2021 after serving a 21-month federal sentence for conspiracy and possession with the intent to distribute fentanyl. At some point thereafter, Alcantara-Lorenzo returned to the United States and was arrested by immigration authorities in Chestnut Hill in April 2023.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Mark Grady of the Major Crimes Unit prosecuted the case.
New York man sentenced to 50 years in prison for surveilling and shooting a man in MiamiRead the Press Release
MIAMI – On Nov. 14, a New York man was sentenced to 50 years in federal prison, followed by five years of supervised release, for surveilling and later planning the shooting of his victim from point-blank range.
Jaime Serrano Jr., 46, of New York, flew down from New York to Miami to kill his victim. Once Serrano arrived in Miami, he surveilled his victim at the victim’s home and business. Serrano rented a vehicle to conceal his surveillance of the victim. After four days of surveillance, Serrano exchanged his rental vehicle for another one to commit the shooting. Serrano’s co-defendant, Jimenez, entered the victim’s residential community wearing a mask, gloves and holding a firearm. While the victim was in his vehicle about to pull into his garage, Jimenez ran up behind him and started shooting. Jimenez fired eight rounds at the victim. The victim survived but was hit three times and needed surgery to remove the projectiles left inside his body. Jimenez ran back to Serrano’s parked car and hid in the trunk. Serrano then drove them away.
The sentence comes after Serrano’s conviction following a two-week trial in August.
A restitution hearing is scheduled for Feb. 12, 2024.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, announced the sentence imposed by U.S. District Judge Roy K. Altman.
FBI Miami’s Violent Crimes and Fugitive Task Force investigated the case. Assistant U.S. Attorneys Abbie D. Waxman, Michael E. Gilfarb and Katherine W. Guthrie prosecuted it.
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-20389.
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New Orleans Man Pleads Guilty to Multiple Federal Carjacking OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on November 14, 2023, KYREN WASHINGTON, age 20, of Orleans Parish, pled guilty to a five-count superseding bill of information for five separate carjackings in violation of Title 18, United States Code, Section 2119(1).
WASHINGTON faces a sentence of up to 15 years of imprisonment, a fine of up to $250,000.00, and up to 3 years of supervised release for each count. He also faces a mandatory special assessment fee of $500.00. Sentencing is set for February 27, 2024.
According to court documents, WASHINGTON was involved in five separate carjackings on September 29, October 2, October 4, and an attempted carjacking on October 10, 2023.
Four of the vehicles were recovered in the Algiers area of New Orleans. After the attempted carjacking, WASHINGTON was identified, and arrested by the New Orleans Police Department who learned that WASHINGTON had discarded a firearm and black backpack in the 1200 block of Poydras Ave.
Law enforcement retrieved the discarded black backpack and obtained a search warrant authorizing a search of the backpack. That search revealed two additional firearms and ammunition. Recovered were a Smith & Wesson Model M&P9, nine-millimeter and Glock Model 19X, nine-millimeter firearms along with a magazine loaded with ammunition. The discarded firearm was identified as a Glock Model 22, .40 caliber firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit.
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New Orleans Man Indicted for Violations of the Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – CYRUS ROLLINS, age 41, a resident of New Orleans, was charged on November 16, 2023 in a three-count indictment for violations of the Federal Controlled Substances and Gun Control Acts that allegedly occurred on or about August 30, 2023, announced U.S. Attorney Duane A. Evans.
Count 1 of the indictment charged ROLLINS with possession with the intent to distribute quantities of methamphetamine, fentanyl, cocaine, and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). For these offenses, he faces up to 20 years of imprisonment, a fine of up to $1,000,000, and at least 3 years of supervised release following any term of imprisonment.
Count 2 charged ROLLINS with possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). For this offense, he faces a mandatory minimum sentence of five years imprisonment, up to life imprisonment, to run consecutive with any other sentence, a fine of up to $250,000, and up to five years of supervised release following any term of imprisonment.
Count 3 charged ROLLINS with being a felon in possession of firearms, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). For this offense, he faces up to 15 years imprisonment, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment. For each count, ROLLINS also faces payment of a $100 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Greg Kennedy of the Violent Crimes Unit.
Nevada Man Sentenced for Destroying Petroglyph at National MonumentRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced Tuesday by United States District Judge Richard F. Boulware II to six months in prison to be followed by one year of supervised release and $7.303.05 in restitution for damaging a centuries-old petroglyph at Gold Butte National Monument in southeastern Nevada.
Michael Shorter, 44, pleaded guilty in April 2023 to a felony violation of the Archaeological Resources Protection Act (ARPA) for the unauthorized damage and removal of an archaeological resource.
According to court documents, on September 15, 2018, at the Mud Wash area of Gold Butte National Monument, Shorter climbed onto a ledge and kicked a petroglyph 15 feet onto the ground below, causing the petroglyph to be partially damaged. The petroglyph was created approximately 700 to 1500 years ago. This site is important to people of the Moapa Band of Paiutes, Southern Paiute tribes more broadly, and other indigenous people of the region.
The petroglyph, which was part of a larger panel of petroglyphs, was broken into multiple pieces. Shorter transported the broken petroglyph away from the Gold Butte National Monument to his home where it was displayed in a garden before being destroyed.
This case was investigated by the Bureau of Land Management.
United States Attorney Jason M. Frierson for the District of Nevada and State Director Jon Raby for the Bureau of Land Management in Nevada made the announcement.
ARPA prohibits the unauthorized excavation and removal of archaeological resources on federal lands as well as the unlawful sale, purchase, or exchange of such resources.
To report natural resources crimes on Bureau of Land Management-managed public lands, please call Bureau of Land Management’s Law Enforcement Dispatch at (800) 637-9152.
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Milwaukee Felon Indicted for Illegally Importing Machinegun Conversion Devices and Other Firearm Related OffensesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 14, 2023, a federal grand jury returned an indictment against Demario M. Robinson (age: 21) of Milwaukee County, Wisconsin. The indictment charges Robinson with three counts of purchasing and receiving machinegun conversion devices (MCDs) that had been illegally imported into the United States, in violation of Title 18, United States Code, Section 545.
According to a criminal complaint previously issued in the case, the MCDs (commonly known as “switches”) converted semi-automatic weapons into fully automatic firing machine guns. The complaint further alleged that Robinson had purchased and received hundreds of MCDs between July 2022 and June 2023. If convicted of any of the three importation charges, Robinson would face a 20-year maximum term of imprisonment.
The indictment also alleges that on June 20, 2023, Robinson possessed a machine gun, namely a Glock 9mm handgun that had been converted to firing automatically, and that he possessed a firearm despite being a convicted felon, in violation of Title 18, United States Code, Sections 922(o) and 922(g)(1). Finally, the indictment also charges Robinson with possession with intent to distribute marijuana on June 20, 2021, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D).
If convicted, Robinson would be subject to a ten-year maximum term of imprisonment for the possession of machinegun offense and 15-year maximum term of imprisonment for the felon-in-possession charge. If convicted of the drug offense, Robinson would face a five-year maximum prison term.
This case was investigated by the Federal Bureau of Investigation’s Milwaukee Area Safe Streets Task Force. It is being prosecuted by Assistant United States Attorneys William Roach and Michael Schindhelm.
An indictment is only a charge and is not evidence of guilt. The defendant has pled not guilty, is presumed innocent, and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Middlesex County Women Charged with COVID-19 Fraud SchemeRead the Press Release
NEWARK N.J. – A Middlesex County, New Jersey, woman was arrested on charges that she fraudulently obtained Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds and unemployment insurance benefits totaling $694,212, U.S. Attorney Philip R. Sellinger announced today.
Damaris Valerio, 41, of Perth Amboy, New Jersey, is charged by complaint with one count of wire fraud and one count of money laundering. She made her initial appearance on Nov. 15, 2023, before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
From April 2020 through December 2021, Valerio fraudulently obtained $694,212 in COVID-19 emergency relief funds, which included loans and cash advances meant for distressed small businesses under the EIDL program and PPP and unemployment insurance benefits meant for unemployed workers, by submitting false and fraudulent applications inflating her business’ revenue, payroll expenses, and number of employees. After receiving the fraudulent funds, she diverted virtually all of the proceeds for her personal gain.
The wire fraud charge carries a maximum penalty of 20 years in prison, and the money laundering charge carries a maximum penalty of 10 years in prison. Each charge also carries a maximum fine of $250,000, or twice the gross gain to the defendants or gross loss to the victim, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the of the Department of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Michael Alfonso, special agents of U.S. Department of Labor, Office of Inspector General, Northeast Region under the direction of Special Agent in Charge Jonathan Mellone, and special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
valerio.complaint.pdfMexican National Arraigned for Kidnapping, Hostage Taking and Alien Smuggling in FresnoRead the Press Release
FRESNO, Calif. — Cristian Ortiz Coronado, 31, a resident of Mexico, was arraigned today on a six-count indictment charging him with kidnapping, hostage taking, and transporting illegal aliens, U.S. Attorney Phillip A. Talbert announced. Coronado was indicted on November 9 by a federal grand jury.
According to court documents, Ortiz Coronado was hired to deliver a family to Fresno on Aug. 25, 2023 after they illegally crossed the border from Mexico. When Ortiz Coronado picked the family up, including a mother, her four-year-old daughter, and her nine-year-old son, he locked the doors and would not let them leave the vehicle. Ortiz Coronado then demanded an additional $21,000 from relatives before he would release the family, including children, in Fresno. When relatives did not have the money and tried to block Ortiz Coronado from driving away, Ortiz Coronado rammed first a relatives’ vehicle and then the father of the children before driving away with the mother and her nine-year-old son, leaving the four-year-old behind.
This case is the product of an investigation by the Fresno Police Department, the Federal Bureau of Investigation, and Homeland Security Investigations. Assistant U.S. Attorneys Stephanie Stokman and Robert Veneman-Hughes are prosecuting the case.
If convicted, Ortiz Coronado faces a maximum statutory penalty of life in prison and a $3 million fine. 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Memphis Woman Facing Federal Charges for Assault on United States Secret Service Agents and EmployeesRead the Press Release
Memphis, TN – A federal grand jury has returned an indictment charging a Memphis woman with assault on a government officer or employee and for discharging a firearm during that offense. Raven Jones, 41, is facing federal charges alleging that she assaulted federal officers during an altercation at the United States Secret Service field office in Memphis.
According to a previously sealed complaint, on October 19, 2023, Jones is alleged to have approached the entrance door of the field office while using her cell phone to livestream on Facebook. The door was clearly marked as entry to the United States Secret Service offices and Jones arrived during normal business hours on a workday; the office was staffed with agents, task force officers, administrative staff, and visitors.
Jones allegedly then produced a 9mm handgun and fired a single shot into the wall next to the doorway, placed the weapon on the floor, and raised her hands above her head. Federal officers entered the hallway and detained Jones.
The case is the product of an investigation by the U.S. Secret Service and the Federal Bureau of Investigation. Assistant U.S. Attorney J. William Crow of the National Security and Civil Rights Unit is prosecuting the case.
If convicted, Jones faces a mandatory minimum of 10 years in federal prison for the firearms charge and a maximum statutory penalty of life imprisonment along with a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of applicable statutory factors and the Federal Sentencing Guidelines, which consider several variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Member of MS-13 Pleads Guilty in Connection with 2016 Fairfax MurderRead the Press Release
ALEXANDRIA, Va. – An El Salvadoran member of the transnational street gang La Mara Salvatrucha, or MS-13, pleaded guilty yesterday in connection with the kidnapping and murder of an adolescent boy in 2016.
According to court documents, Edwin Orellana Caballero, who was 16 years old and living in Alexandria at the time, was one of several members and associates of the Park View Locos Salvatrucha clique of MS-13 who kidnapped and killed 14-year-old victim, S.A.A.T. On the night of September 26, 2016, the gang lured S.A.A.T. to Holmes Run Stream Valley Park in Fairfax County and murdered him in a wooded area there with knives, machetes, and a pickaxe. Specifically, Orellana Caballero struck S.A.A.T. multiple times with the pickaxe. Once S.A.A.T. was dead, the gang buried him in a shallow grave.
Orellana Caballero, who was transferred for prosecution as an adult under the Juvenile Justice and Delinquency Prevention Act, pleaded guilty to one count of maiming in aid of racketeering activity and faces a minimum of 20 years and a maximum of 25 years in prison when sentenced on February 28, 2024. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
To date, a total of 17 defendants have been charged in this case. Of those, five defendants went to trial and were convicted of all charges. Ten defendants pleaded guilty prior to trial.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea.
The U.S. Immigration and Customs Enforcement Washington Field Office, the U.S. Marshals Service, the Alexandria Police Department, the Prince William County Police Department, the Montgomery County (MD) Police Department, and the Marin County (CA) Sheriff’s Office provided significant assistance on the investigation.
Assistant U.S. Attorneys Alexander E. Blanchard and Cristina C. Stam are prosecuting 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.
The Justice Department recently announced several new commitments as part of its Comprehensive Strategy for Reducing Violent Crime. Instituted by Attorney General Merrick B. Garland in May 2021, the strategy focuses on harnessing federal resources, intelligence, and expertise as a force-multiplier with state, local, and Tribal law enforcement. Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta highlighted the more than $334 million in critical grant funding to law enforcement agencies and stakeholders awarded today by the Office of Community Oriented Policing Services (COPS Office).The COPS grants announced include funding to help law enforcement agencies hire over 1,730 new law enforcement officers across the country while also providing critical funding to support school safety and continue to advance community policing nationwide.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-153.
Maryland Man Sentenced to 9 Months in Prison for Attempted Witness Tampering in Relation to Healthcare Fraud ConspiracyRead the Press Release
WASHINGTON – Atawan Mundu John, a.k.a., John Mundu Atawan, 46, of Hyattsville, Maryland, was sentenced today to nine months in prison for attempting to tamper with a witness more than nine years ago during a federal healthcare fraud investigation.
The sentence was announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office's Criminal and Cyber Division, Special Agent in Charge Maureen R. Dixon, of the U.S. Department of Health and Human Services’ Office of Inspector General for the region that includes Washington, D.C., and Daniel W. Lucas, Inspector General for the District of Columbia.
In February 2014, a federal grand jury charged Florence Bikundi, who owned and operated a home health care agency, with various offenses related to a multimillion-dollar scheme to defraud the D.C. Medicaid program. The defendant was employed by Bikundi’s agency as a personal care aide. After Bikundi was arrested, the investigation into her and others continued. As part of its investigation, law enforcement agents interviewed the defendant multiple times.
On June 12, 2014, a Medicaid beneficiary who received kickbacks from the defendant to help facilitate Medicaid fraud placed a recorded call to the defendant that lasted approximately 18 minutes. During that call, the defendant – fully aware of the active federal investigation – instructed the beneficiary to lie to the FBI about ever receiving money or kickbacks. The defendant admitted on the call that paying money to beneficiaries was fraud. Law enforcement agents confronted the defendant with the recorded call five days later. Before formal charges were brought against him, the defendant fled the area.
In December 2014, a federal grand jury returned a superseding indictment charging Florence Bikundi, her husband Michael Bikundi, Christian Asongcha, five other individuals, and the defendant with various offenses related to the scheme to defraud Medicaid. The defendant was charged with one count of attempted witness tampering. Five of the individuals pleaded guilty to health care fraud, and in November 2015, a jury convicted Florence and Michael Bikundi of multiple offenses after a trial. By June 2016, the Bikundis and five other individuals all had been sentenced while Asongcha, who has never been apprehended, and the defendant remained fugitives. Florence Bikundi was sentenced to ten years in prison; her husband Michael Bikundi received a seven-year sentence. The co-defendants received sentences ranging from probation with home confinement to three months in prison.
The defendant remained a fugitive until July 13, 2023, when he was arrested in Maryland. He has been held without bond since his arrest.
On August 4, 2023, the defendant pleaded guilty to attempted tampering with a witness before U.S. District Court Judge Beryl A. Howell.
Today, Judge Howell sentenced him to nine months in prison followed by three years of supervised release. She also ordered that he pay $80,493 in restitution to the D.C. Medicaid program, an amount equal to what Medicaid paid home health agencies for false claims associated with three Medicaid beneficiaries to whom the defendant paid kickbacks.
The government urges the public to provide tips and assistance to stop health care fraud. If you have information about individuals committing health care fraud, including the whereabouts of Christian Asongcha, please call the Department of Health and Human Services’ Office of Inspector General hotline at 800-HHS‑TIPS (800 447-8477) or the D.C. Office of the Inspector General at 202-724-TIPS (202 724-8477).
This case was investigated by the FBI’s Washington Field Office, the Department of Health and Human Services’ Office of Inspector General, and the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit. Multiple people from the U.S. Attorney’s Office worked on the case, including former Assistant U.S. Attorneys Lionel A. André, Anthony Saler, and Michelle Bradford, who tried Florence and Michael Bikundi. Assistant U.S. Attorney Kondi Kleinman prosecuted Atawan Mundu John from the time of his arrest through today’s sentencing.
Manchester Man Arrested on Drug Distribution ChargesRead the Press Release
CONCORD – A Manchester man was arrested for distributing fentanyl, U.S. Attorney Jane E. Young announces.
Thomas Holland, 37, was indicted on three counts of distribution of fentanyl. Holland was arrested this afternoon in Manchester. He will make an initial appearance in federal court in Concord tomorrow.
The charge of drug distribution provides for a sentence up to 20 years in prison, at least a three-year term of supervised release, and a maximum fine of $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Drug Enforcement Administration is leading the investigation. Valuable assistance was provided by the Manchester Police Department and the Nashua Police Department. Assistant U.S. Attorney Heather A. Cherniske is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Luzerne County Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christopher Essameddin Birry, age 41, of Hanover Township, Pennsylvania, was indicted on November 14, 2023, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney Gerard M. Karam, the indictment alleges that between May 31, 2023, and July 27, 2023, Birry distributed methamphetamine on multiple occasions in Luzerne County. The indictment further alleges that on September 11, 2023, Birry possessed with intent to distribute methamphetamine and possessed a handgun during and in relation to drug trafficking when he was a person prohibited from possessing a firearm.
The case was investigated by the Federal Bureau of Investigation, the Luzerne County Drug Task Force, and the Pennsylvania State Police. Assistant U.S. Attorney Jenny P. Roberts 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 Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Los Angeles, California, Man Sentenced to 144 Months for Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
SPRINGFIELD, Ill. – A Los Angeles, California, man, Juan Trujillo, 44, was sentenced on November 13, 2023, by Senior U.S. District Judge Sue E. Myerscough to 144 months in prison, to be followed by a 5-year term of supervised release, and a $200 special assessment, for conspiracy to distribute methamphetamine and heroin.
Trujillo was indicted in March 2019 and pleaded guilty in December 2022.
The statutory penalties for conspiracy to distribute 50 grams or more of methamphetamine are up to life imprisonment, up to a $10,000,000 fine, and up to a life term of supervised release. The statutory penalties for conspiracy to distribute 100 grams or more of heroin are up to life in prison, up to a $5,000,000 fine, and up to a life term of supervised release.
This case was investigated by the Springfield Police Department, Illinois State Police, and the Drug Enforcement Administration (DEA). Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Trujillo is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.