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8 January 2024
Westmoreland County Resident Sentenced to 33 Months in Prison for Conspiring to Commit Wire FraudRead the Press Release
PITTSBURGH, PA – A resident of Westmoreland County, Pennsylvania, was sentenced in federal court for conspiracy to commit wire fraud, U.S. Attorney Eric G. Olshan announced today.
On January 8, 2024, United States District Judge Stephanie L. Haines sentenced Ronnell Taylor, Jr., 41, to 33 months of imprisonment, followed by two years of supervised release. Taylor was also ordered to pay restitution to 27 victims of the fraud scheme in the total amount of $193,111.
According to information provided to the court, Taylor admitted that, from March 2016 to August 2017, he participated in an IRS impersonation fraud conspiracy involving call centers located in India. As part of this fraud scheme, victims in the United States received recorded messages fraudulently claiming that the call was from the IRS concerning the victims’ failure to pay taxes and directing victims to call a U.S.-based telephone number to resolve the matter. Calls to these U.S.-based telephone numbers would be automatically forwarded to call centers in India, and those who answered told victims that they owed money to the IRS and demanded immediate payment via gift card or other means. To assist in this fraud scheme, Taylor activated and programmed cell phones to automatically forward calls to the foreign call centers. Taylor also hired associates, including his co-defendant Michael Galanis, to program hundreds of cell phones for this purpose. After Taylor learned that co-conspirators in India had been charged with conduct related to the fraud scheme, Taylor destroyed evidence related to the scheme, including prepaid credit cards, cell phones, and other documents.
Prior to imposing sentence, Judge Haines stated that the fraud conspiracy impacted numerous victims and lasted for almost 18 months. Judge Haines further noted that victims of the scheme were threatened and some suffered “financial destruction” as a result of the defendant’s offense.
Assistant United States Attorney Karen Gal-Or prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Treasury Inspector General for Tax Administration, the United States Department of Homeland Security, and the United States Postal Inspection Service for the investigation leading to the successful prosecution of Taylor.
Anyone with information about allegations of elder fraud can report it by calling the National Elder Fraud Hotline at 1-833-FRAUD-11 or 833–372–8311. More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative at https://www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at https://reportfraud.ftc.gov/#/assistant?orgcode=USDOJEFH or at 877-FTC-HELP.
Waterloo Man Sentenced to Federal Prison for Possessing a Firearm as a FelonRead the Press Release
A man who possessed a firearm as a felon was sentenced today to seven years in federal prison.
Davion Everette Madlock, age 24, from Waterloo, Iowa, received the prison term after as August 21, 2023 guilty plea to one count of possession of a firearm as a felon.
Evidence at the plea and sentencing hearings showed that between October 2022 and November 2022, Madlock posted videos and photos on social media advertising the sale of marijuana. On November 11, 2022, law enforcement officers searched Madlock’s residence. During the search, officers located a firearm with a laser sight and an extended magazine that was loaded with 31 rounds of ammunition on a coffee table in front of a couch where Madlock would sleep. Behind that couch, officers located a shoe box that contained 33 individually tied sandwich baggies each containing marijuana, a digital scale, and a paper identification card belonging to Madlock. At the time of the search warrant, Madlock was a felon based on multiple prior gun-related felony convictions.
Madlock was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Madlock was sentenced to 84 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Madlock is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorney Adam J. Vander Stoep and was investigated by the Waterloo Police Department and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2027.
Follow us on Twitter @USAO_NDIA.
Washington man accused of conspiring to unlawfully kill and sell bald and golden eagles arraigned on chargesRead the Press Release
MISSOULA — A Washington man suspected of conspiring to unlawfully kill bald and golden eagles on the Flathead Indian Reservation and then illegally sell them on the black market across the United States and elsewhere appeared for arraignment today on multiple charges, U.S. Attorney Jesse Laslovich said.
Travis John Branson, 48, of Cusick, Washington, pleaded not guilty to an indictment charging him with conspiracy, unlawful trafficking of bald and golden eagles and Lacey Act violations. If convicted of the most serious crime, Branson faces a maximum of five years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Branson appeared on a summons and was released pending further proceedings. Co-defendant, Simon Paul, failed to appear on a summons, and the court ordered that a warrant be issued for his arrest.
As alleged in the indictment, from about January 2015 until about March 2021, near Ronan, on the Flathead Indian Reservation, Paul and Branson conspired to illegally kill and offer for sale bald and golden eagles. Investigators uncovered messages from Branson and others describing the illegal taking of eagles by stating, “[O]ut [here] committing felonies,” and telling buyers he was on “a killing spree” to obtain eagle tail feathers for future sales. Paul, Branson and others hunted and killed eagles on the Flathead Reservation and elsewhere. In total, the defendants killed approximately 3,600 birds, including eagles. Paul and Branson then illegally sold eagle feathers and parts on the black market for significant sums of cash across the United States and elsewhere.
The indictment further alleges that Branson traveled from Washington to the Flathead Reservation to shoot bald and golden eagles, and that Paul was a “shooter” and “shipper” of eagles for Branson.
The indictment also alleges that on Dec. 17, 2020, Branson sent a text message to a purchaser with a photo of a golden eagle tail set. On the same date, Branson received a PayPal purchase for the golden eagle tail set. Two days later, Paul mailed the golden eagle set from St. Ignatius, Montana, to Texas. On Dec. 21, 2020, Branson received a text message from the purchaser that said, “Got that thang from Simon. And the mirror feathers. Tnks.” In addition, the indictment alleges that on March 13, 2021, Branson and Paul returned to a previously killed deer to lure eagles and that Branson shot a golden eagle. Paul cleaned the golden eagle and both defendants placed various golden eagle parts in a vehicle for transport.
The Bald and Golden Eagle Protection Act was enacted in 1940 to protect the bald eagle, recognizing that the bald eagle is not only a bird of biological interest but also this country’s national symbol. In 1962, Congress extended the Act to protect golden eagles.
An indictment is merely an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorneys Ryan G. Weldon and Randy Tanner are prosecuting the case. The U.S. Fish and Wildlife Service, U.S. Postal Inspection Service and Flathead Tribal Law Enforcement conducted the investigation.
PACER case reference. 23-55.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl
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Vandalia man sentenced to 13 years in prison for possessing bulk amounts of fentanyl, xylazine within elementary school zoneRead the Press Release
DAYTON, Ohio – A Vandalia man was sentenced in U.S. District Court today to 156 months in prison and eight years of supervised release for possessing with the intent to distribute drugs within 1,000 feet of a local elementary school.
The United States argued at sentencing that Jason Glanton, 34, possessed enough fentanyl to kill hundreds of thousands of full-grown adults in close proximity to kids in kindergarten through third grade at Helke Elementary School on Randler Avenue in Vandalia.
Glanton’s narcotics included fentanyl, fentanyl analogue, and a xylazine mixture known by the street names “tranq dope” and “zombie dope.” Xylazine is particularly dangerous because it has no known antidote, meaning Narcan/naloxone is less effective at reversing overdoses.
According to court documents, in the fall of 2022, the FBI and Dayton Police Department began investigating Glanton for fentanyl trafficking. Law enforcement observed Glanton sell fentanyl on at least three occasions in January and February 2023.
While executing a search warrant in February 2023, agents discovered more than 136 grams of fentanyl, $9,000 in cash, five semiautomatic handguns and more than 300 rounds of ammunition in a basement office at Glanton’s home on Pool Avenue. Investigators also discovered three loaded handguns in the primary bedroom.
In Glanton’s Chevrolet Silverado, officials discovered $10,000 in cash in the trunk and a loaded handgun in a hidden compartment inside the vehicle.
When Glanton was arrested in March 2023, he had more than $1,700 in cash on him and nearly 75 grams of fentanyl in his Chrysler 300.
Glanton pleaded guilty in September 2023.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, and gangs that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA); J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Dayton Police Chief Kamran Afzal announced the sentence imposed today by Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorney Kelly K. Rossi is representing the United States in this case.
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U.S. Navy Sailor Sentenced to More Than 2 Years in Prison for Transmitting Sensitive U.S. Military Information to Chinese Intelligence OfficerRead the Press Release
LOS ANGELES – A United States Navy service member was sentenced today to 27 months in federal prison for transmitting sensitive U.S. military information to an intelligence officer from the People’s Republic of China.
Wenheng Zhao, 26, also known as Thomas Zhao, of Monterey Park, was sentenced by United States District Judge R. Gary Klausner, who also fined Zhao $5,500.
Zhao pleaded guilty in October 2023 to one count of conspiracy and one count of receiving a bribe in violation of his official duties.
Zhao, who was stationed at Naval Base Ventura County in Port Hueneme, held a U.S. security government clearance and underwent routine trainings on efforts by hostile nation states to acquire sensitive information.
Between August 2021 and at least May 2023, Zhao received at least $14,866 in 14 separate bribe payments from the intelligence officer, who directed Zhao to surreptitious collect and transmit sensitive U.S. military information and offered to pay Zhao bonuses for controlled and classified information.
In exchange for the illicit payments, Zhao repeatedly entered restricted military and naval installations to secretly collect non-public information regarding U.S. Navy operational security, military trainings and exercises, and critical infrastructure. Zhao used encrypted communications to transmit that sensitive, non-public information to the intelligence officer. Zhao transmitted plans for a large-scale maritime training exercise in the Pacific theatre, operational orders, and electrical diagrams and blueprints for a Ground/Air Task Oriented Radar system located in Okinawa, Japan.
Zhao attempted to conceal his crimes and his relationship with the intelligence officer by destroying evidence.
“Zhao betrayed his country and disgraced himself when he accepted bribes from an intelligence officer with the People’s Republic of China,” said United States Attorney Martin Estrada. “As a result, he has now been removed from the military and will serve time in federal prison. Today’s sentence shows that my office will swiftly act to root out and punish those who seek to undermine our nation’s security.”
“Mr. Zhao betrayed his solemn oath to defend his country and endangered those who serve in the U.S. military,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today, he is being held to account for those crimes. The Justice Department is committed to combatting the Chinese government’s efforts to undermine our nation’s security and holding accountable those who violate our laws as part of those efforts.”
“Mr. Zhao abdicated his oath to the United States and put American troops in harm's way when he accessed and handed over sensitive information to China for a payout,” said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Today's sentence should make it very clear that the FBI and our partners in the military and at the U.S. Attorney's Office will hold accountable anyone who succumbs to advances by the Chinese or any U.S. adversary, and in doing so, puts American secrets and American lives at risk.”
“Mr. Zhao betrayed his oath to the United States and deserves to be held fully accountable for accepting bribes in exchange for transmitting sensitive U.S. military information to an intelligence officer from the People’s Republic of China,” said Acting Special Agent in Charge Angel Cruz of the Naval Criminal Investigative Service (NCIS) Office of Special Projects. “NCIS will continue to leverage its unique law enforcement and counterintelligence authorities to vigorously pursue those who attempt to compromise our national security information. We are grateful to the FBI and Department of Justice for their substantial assistance to this lengthy investigation and greatly appreciate our continued partnership.”
The FBI’s Counterintelligence and Cyber Division of the Los Angeles Field Office and NCIS conducted the investigation. IRS Criminal Investigation provided substantial assistance.
Assistant United States Attorneys Annamartine Salick, Sarah Gerdes, Christine Ro and Kathrynne Seiden of the Terrorism and Export Crimes Section prosecuted this case, with assistance from Assistant United States Attorney Ryan Waters of the Asset Forfeiture and Recovery Section. The Counterintelligence and Export Control Section at the Department of Justice provided substantial assistance.
U.S. Navy Sailor Sentenced to 27 Months in Prison for Transmitting Sensitive U.S. Military Information to Chinese IntelligenceRead the Press Release
A U.S. Navy service member was sentenced today to 27 months in prison and ordered to pay a $5,500 fine for transmitting sensitive U.S. military information to an intelligence officer from the People’s Republic of China (PRC) in exchange for bribery payments.
According to court documents, Petty Officer Wenheng Zhao, 26, aka Thomas Zhao, of Monterey Park, California, pleaded guilty in October 2023 to one count of conspiring with the intelligence officer and one count of receiving a bribe.
“Mr. Zhao betrayed his solemn oath to defend his country and endangered those who serve in the U.S. military,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today, he is being held to account for those crimes. The Justice Department is committed to combatting the Chinese government’s efforts to undermine our nation’s security and holding accountable those who violate our laws as part of those efforts.”
“Zhao betrayed his country and disgraced himself when he accepted bribes from an intelligence officer with the People’s Republic of China,” said U.S. Attorney Martin Estrada for the Central District of California. “As a result, he has now been removed from the military and will serve time in federal prison. Today’s sentence shows that my office will swiftly act to root out and punish those who seek to undermine our nation’s security.”
“Make no mistake, the PRC is engaged in an aggressive effort to undermine the national security of the U.S. and its partners,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Zhao chose to betray the oath he took to our country and put others at risk by providing sensitive U.S. information to a PRC intelligence official. The Chinese Communist Party has repeatedly shown it will freely break any law or norm to achieve a perceived intelligence advantage. Today’s sentencing demonstrates, yet again, the inability of China’s Intelligence Services to prevent the FBI and our vital partners from apprehending and prosecuting the spies China recruits.”
“Mr. Zhao betrayed his oath to the United States and deserves to be held fully accountable for accepting bribes in exchange for transmitting sensitive U.S. military information to an intelligence officer from the People’s Republic of China,” said Acting Special Agent in Charge Angel Cruz of the Naval Criminal Investigative Service (NCIS) Office of Special Projects. “NCIS will continue to leverage its unique law enforcement and counterintelligence authorities to vigorously pursue those who attempt to compromise our national security information. We are grateful to the FBI and Department of Justice for their substantial assistance to this lengthy investigation and greatly appreciate our continued partnership.”
Zhao, who worked at Naval Base Ventura County in Port Hueneme and held a U.S. security clearance, engaged in a corrupt scheme to collect and transmit sensitive U.S. military information to the intelligence officer in violation of his official duties.
Between August 2021 and at least May 2023, Zhao received at least $14,866 in at least 14 separate bribe payments from the intelligence officer. In exchange for the illicit payments, Zhao secretly collected and transmitted to the intelligence officer sensitive, non-public information regarding U.S. Navy operational security, military trainings and exercises, and critical infrastructure. Zhao entered restricted military and naval installations to collect and record this information.
Zhao transmitted plans for a large-scale maritime training exercise in the Pacific theatre, operational orders and electrical diagrams and blueprints for a Ground/Air Task Oriented Radar system located in Okinawa, Japan.
He used sophisticated encrypted communication methods to transmit the information. He also destroyed evidence and concealed his relationship with the intelligence officer. Zhao’s conduct violated his official duties to protect such information and the oath he swore to protect the United States.
The FBI Los Angeles Field Office’s Counterintelligence and Cyber Division and NCIS conducted the investigation. IRS-Criminal Investigation provided substantial assistance.
Assistant U.S. Attorneys Annamartine Salick, Sarah Gerdes, Christine Ro and Kathrynne Seiden for the Central District of California prosecuted the case. Assistant U.S. Attorney Ryan Waters for the Central District of California and Trial Attorney Adam Barry of the National Security Division’s Counterintelligence and Export Control Section provided valuable assistance.
U.S. District Court and U.S. Attorney’s Office Warn Public of Jury Duty ScamRead the Press Release
Jacksonville, Florida–Chief U.S. District Judge Timothy J. Corrigan and U.S. Attorney Roger B. Handberg warn the public of a nationwide scam in which callers pose as U.S. Marshals or other government officials and claim that the victim is about to be arrested for not appearing for jury duty but can avoid arrest by paying a fine. The Middle District of Florida has recently received an increased number of phone calls from victims regarding these scams and deems it of the utmost importance to promote awareness and prevent more people from falling prey to such scams. The scammers may provide convincing information, including about the victim (e.g., addresses, date of birth, etc.), real names of federal judges or court employees, actual court addresses, court phone numbers, and case and badge numbers. Scammers may even “spoof” the phone number on the caller ID so that the call falsely appears to originate from a court number or the number of another government agency. The caller then tells the victim they can avoid arrest by paying an immediate fine and walks them through purchasing a prepaid debit or gift card or making an electronic payment to satisfy the “fine.”
These phone calls are fraudulent, and citizens should not provide the caller with any personal or financial information. In no instance will a court official, U.S. Marshals Service, or other government employee contact someone and demand payment or personal information by phone or email.
“We’ve seen a resurgence of jury scams in recent months where a caller demands that someone pay a fee or face arrest for missing jury duty. Let me be clear: these calls are fraudulent,” warns Chief Judge Corrigan. “If you receive a phone call from someone claiming to be a judge or other court official, do not give them your credit card or other financial information. The court appreciates those citizens who are called for jury service and always endeavors to treat them with respect.”
“Jury service is one of the most important public services a citizen can perform, and it is a serious matter when scammers attempt to use a citizen’s sense of civic duty to defraud them,” said U.S. Attorney Handberg. “If someone calls and threatens you to pay them to not be arrested for missing federal jury duty, you are being scammed. This scam works by trying to create a false sense of urgency that you must pay money immediately to avoid arrest. Do not fall for it. Hang up the phone and instead report the call to the appropriate federal authorities.”
Residents of the Middle District of Florida who believe they have been the victim of such a scam are encouraged to report the incident to the Federal Trade Commission at https://reportfraud.ftc.gov/#/ and your local FBI Field Office. Below are a few preventative facts to remember if contacted by a scammer:
- The court will always send a jury summons by U.S. Mail. A court will never ask for a credit/debit card number, wire transfers, bank routing numbers, or demand payment over the phone for any purpose.
- A prospective juror who disregards a summons will be contacted by the District Court Clerk’s Office by mail and may, in certain circumstances, be ordered to appear before a judge. Such an order will always be in writing and signed by the judge.
- A fine will never be imposed until after an individual has appeared in court and been given the opportunity to explain their failure to appear. If a fine is imposed, it will be in open court and reduced to writing (and will not be payable by gift card number).
- Report scams to the District Court Clerk’s Office, U.S. Marshals Service, or Federal Trade Commission. You can remain anonymous when you report.
- You can authenticate a call by contacting the Clerk’s Office of the U.S. District Court. Each division phone number is on the Court’s website at www.flmd.uscourts.gov.
U.S. Attorney’s Office Collects over $25 Million in Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
United States Attorney for the Southern District of Indiana, Zachary A. Myers, announced today that the U.S. Attorney’s Office collected $25,434,282 in asset forfeiture and financial litigation debt in Fiscal Year 2023. Of this amount, $15,244,637 was collected through asset forfeiture actions and $10,189,645 was collected through civil and criminal debt collection actions.
“The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the victims of federal crime,” said U.S. Attorney Myers. “We are proud to have partnered with so many local, state, and federal law enforcement agencies to compensate victims and hold criminals financially accountable.”
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney Myers thanked Civil Division Chief Shelese Woods and Asset Recovery Unit Chief Kelly Rota, as well as the Office’s outstanding attorneys and support professionals for their diligent efforts to uphold the law, hold wrongdoers accountable, and recover funds for victims of crime.
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U.S. Attorney's Office for Western District of Kentucky Calls for Public Awareness During Human Trafficking Prevention MonthRead the Press Release
Louisville, KY – January is Human Trafficking Prevention Month, a time to educate ourselves and raise awareness in our communities about this devastating crime that violates the most basic of human rights - freedom. Whether it’s forced labor, domestic servitude, or sex trafficking of children and adults, human trafficking is the exploitation of human beings for profit and has no place in any community. Yet every day, these horrific crimes are happening across the United States and worldwide, stripping victims of their dignity, forcing them into a life of fear and a state of servitude.
That’s why in January and throughout the year, the Department of Justice, and dedicated prosecutors from the U.S. Attorney’s Office, together with victim witness coordinators and support personnel, work with law enforcement partners to prevent human trafficking and bring offenders to justice. The U.S. Attorney’s Office joins forces with trauma-informed service providers to protect survivors and connect them with the resources and support they need and deserve.
The U.S. Attorney’s Office encourages the public to join in this important mission to help shed light on this horrific crime that too often goes undetected. “The first step in combatting human trafficking is identifying and reporting potential trafficking situations,” said U.S. Attorney Bennett. “This crime often occurs in plain sight. Labor and sex trafficking situations can be found in both legal and illegal labor industries, including childcare, elder care, massage parlors, nail and hair salons, restaurants, hotels, factories, construction, landscaping, farming, escort services and the drug trade.”
Know the below indicators that can help identify a potential human trafficking situation:
Does the victim have freedom of movement?
Has the victim or their family been threatened with harm if they attempt to leave?
Is the victim in possession of their own travel documents?
Is the victim coached on what to say to community members, workers, law enforcement or immigration officials? Does someone else communicate for the victim?
Has the victim been threatened with deportation or criminal charges?
Is the victim recruited for one purpose but forced to engage in other work?
Has the victim been harmed, deprived of food, water, sleep, medical care, or other life necessities?
Is the victim living in substandard housing?
Are the victim’s wages being unlawfully garnished to pay off a debt or fee? (Paying off a smuggling free alone is not considered trafficking.)
Is the victim free to contact friends or family without being coached or monitored?
Is the victim allowed to socialize or attend religious services?
Is the victim forced to perform commercial sex acts?
Is the victim under the age of 18 and engaged in commercial sex?
The public can make a difference by being aware of these red flags and acting. U.S. Attorney Bennett emphasized, “Report what you see and together, we can stop human trafficking.”
If you are a victim of human trafficking or suspect you know one, please contact the FBI at 1-800-CALL-FBI, the National Human Trafficking Hotline at 1-888-373-7888 or text HELP or INFO to BeFree (233733), or your local law enforcement. If you or someone you know is in immediate danger, please call 911. If you believe a child is involved in a trafficking situation, submit a tip through the National Center for Missing & Exploited Children’s Call Center at 1-800-THE-LOST (1-800-843-5678).
Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
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Thirty-Five Individuals Charged in Second Superseding Indictment with Participating in Violent Transnational Drug and Money Laundering OperationRead the Press Release
JOHNSTOWN, Pa. – Thirty-five individuals have been indicted by a federal grand jury in Johnstown on narcotics, conspiracy, and money laundering charges, United States Attorney Eric G. Olshan announced today. The four-count Second Superseding Indictment was returned on December 13, 2023, and unsealed today.
The Second Superseding Indictment charges a total of 35 defendants. Thirty-three defendants allegedly participated in a domestic and international narcotics conspiracy between August 2021 and June 2023, involving substantial quantities of fentanyl, methamphetamine, and cocaine. Two defendants are charged with being principal administrators of a continuing criminal enterprise, an alleged violation of the federal “Kingpin” statute. Eight of the defendants are further charged with a money laundering conspiracy. A list of the defendants, charges, and maximum penalties is included at the bottom of this release.
According to the Second Superseding Indictment, two of the defendants, Marcos Monarrez-Mendoza and Marcos Monarrez, Jr., allegedly served as the leaders of the Phoenix-based Monarrez Drug Trafficking Organization (the “Monarrez DTO”), which imported from Mexico millions of fentanyl pills, kilograms of fentanyl powder, hundreds of pounds of methamphetamine, and dozens of kilograms of cocaine that were distributed and sold throughout the United States. The narcotics allegedly were smuggled into the United States inside bulk shipping containers and hidden within commercial consumer products, among other methods. At various times, other defendants, including Jaime Ledesma, Henry Rivera Ortega, and Jesus Miguel Vibanco-Garcia, allegedly served as the suppliers of substantial quantities of narcotics for the Monarrez DTO. Redistributers then sold these drugs throughout the United States, including in Phoenix, Arizona; Seattle, Washington; Wichita, Kansas; Minneapolis, Minnesota; Cleveland, Ohio; Fort Wayne, Indiana; and Western Pennsylvania, among other destinations.
As alleged in the Superseding Indictment, Monarrez-Mendoza and Monarrez, Jr. issued payment through various forms and by various means to the organization’s drug suppliers for the drug shipments. For example, Monarrez-Mendoza and Monarrez, Jr. allegedly issued payments to Humberto Arredondo-Soto, a narcotics supplier based in Mexico, in the form of hundreds of thousands of dollars in bulk U.S. currency; military-grade firearms, including .50 caliber, AK-47, and short-stock AK-47 (Draco) rifles; Glock handguns; FN SCAR assault rifles; and vehicles, which were smuggled from the United States into Mexico by way of couriers.
While orchestrating this transnational drug trafficking organization, Monarrez, Jr. allegedly offered to pay and did pay defendant Carlos Zamora to perpetrate violence, including a drive-by shooting, on behalf of the Monarrez DTO. Throughout the duration of the conspiracy, members of the Monarrez DTO are alleged to have regularly possessed and carried firearms to protect the DTO’s drugs and drug proceeds.
Additionally, while detained at the Cambria County Prison in the Western District of Pennsylvania, members of the conspiracy, including Monarrez, Jr., allegedly used contraband cell phones to communicate with other co-conspirators outside of the jail facility in an effort to direct the continued operations of the Monarrez DTO. Specifically, during this time, Monarrez, Jr. allegedly coordinated the distribution of approximately 500,000 fentanyl pills and kilogram-quantities of fentanyl powder throughout the United States. As alleged, Monarrez-Mendoza and Monarrez, Jr. were the principal administrators, organizers, and leaders of the alleged Monarrez DTO, which involved a total of 120 kilograms or more of fentanyl and 150 kilograms or more of methamphetamine.
“Marcos Monarrez-Mendoza and his son Marcos Monarrez, Jr., along with their many co-conspirators, allegedly operated a violent drug trafficking operation that smuggled massive quantities of deadly drugs from Mexico, including millions of fentanyl pills, into the United States for distribution on the streets of our communities in the Western District of Pennsylvania, as well as many other communities throughout the country,” said U.S. Attorney Olshan. “The latest charges in this case are a direct result of the dedication and ceaseless resolve of the prosecutors in our office, who, alongside our many dedicated federal, state, and local investigative partners, will continue to do everything in our collective power to shut down deadly narcotics traffickers—even when, as alleged, they seek to ply their criminal trade from inside the walls of a jail.”
“The trafficking of fentanyl to our region from other states is a huge problem,” said FBI Pittsburgh Acting Special Agent in Charge Mike Shanahan. “FBI Pittsburgh’s Southwest Safe Streets Task Force and our partners are working very hard to take dangerous drugs off of our streets, along with the people who peddle them. This is another great example of law enforcement working together to combat the drug crisis and make our communities safer by targeting those trying to do harm.”
“These indictments demonstrate HSI’s commitment to cooperation and information sharing with our partner law enforcement agencies. Every time we dismantle one of these criminal enterprises, we help protect the American public from the devastation brought by addiction and the crime and violence that goes along with it,” said Special Agent in Charge of HSI Philadelphia William S. Walker. “These charges carry with them the possibility of life sentences. Given the unparalleled devastation that fentanyl has caused, these superseding indictments send the message to those who deal death that they will be caught and prosecuted to the fullest extent of the law.”
A total of eight defendants are also charged with engaging in a money laundering conspiracy from April 2022 to March 2023 related to the operations of the Monarrez DTO. According to the Second Superseding Indictment, Monarrez-Mendoza and Monarrez, Jr. enlisted the assistance of associates located both in the United States and in Mexico, as well as the family members of their associates, to transport cash proceeds of the Monarrez DTO and engage in various financial transactions designed to legitimize their profits; disguise the nature, location, source, ownership, and control of the proceeds; and promote the Monarrez DTO. This conduct allegedly involved the transportation and delivery of bulk cash proceeds from drug sales to couriers for transportation from the United States to Mexico; the use of digital money transfer services; casino gaming; and the purchase of jewelry, watches, designer clothing, high-end vehicles, and real property, which were often purchased by and titled in the names of third parties to conceal the identities of their true owners.
Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States 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.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency, Homeland Security Investigations, and the FBI’s Southwest Pennsylvania Safe Streets Task Force conducted the investigation leading to the Superseding Indictment in this case. Additional agencies participating in this investigation include the Internal Revenue Service – Criminal Investigation; the United States Postal Inspection Service; Cambria County, Indiana County, and Westmoreland County District Attorney’s Offices and detective bureaus; the Cambria County Sheriff’s Office; Indiana Borough Police; New Kensington Police; Upper Yoder Township Police; Cambria Township Police; the Pennsylvania Office of the Attorney General; Pennsylvania State Police; and numerous other local law enforcement agencies.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
List of Defendants
Name
Age
Place of Residence
Charges
Maximum Penalty
Marcos Monarrez-Mendoza
53
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Engaging in a continuing criminal enterprise
Life imprisonment
Money laundering conspiracy
20 years’ imprisonment
Samuel Aguirre
21
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Money laundering conspiracy
20 years’ imprisonment
Marco Armenta
22
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl
Life imprisonment
Mark Camacho
24
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Robert Foster
25
Buckeye, AZ
Conspiracy to distribute and to possess with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl
Life imprisonment
Donald Garwood
40
Glendale, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Erivan Guerrero
22
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Money laundering conspiracy
20 years’ imprisonment
Bryce Hill
25
Kennewick, WA
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Emmanuel Lopez
27
Glendale, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Cesar Monarrez
25
Maricopa, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Marcos Monarrez, Jr.
23
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Engaging in a continuing criminal enterprise
Life imprisonment
Money laundering conspiracy
20 years’ imprisonment
Jairo Morales
21
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Money laundering conspiracy
20 years’ imprisonment
Stephanie Ortiz
24
Avondale, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Valerie Sanchez
35
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Heaven West
21
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl
Life imprisonment
Carlos Zamora
27
Peoria, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Humberto Arredondo-Soto
23
Culiacan, Mexico
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Colby Barrow
29
Peoria, AZ
Conspiracy to distribute and to possess with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl
Life imprisonment
Luis Chavez-Ortega
26
Glendale, AZ
Money laundering conspiracy
20 years’ imprisonment
Donnell Collins
27
Cleveland, OH
Conspiracy to distribute and to possess with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl and 500 grams or more of a mixture and substance containing a detectable amount of cocaine
Life imprisonment
Possession with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine
40 years’ imprisonment
Mohamed Kariye
34
Kent, WA
Conspiracy to distribute and to possess with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl
Life imprisonment
Jesus Lopez
21
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Diego Monarrez
21
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Alicia Parks
24
Kent, WA
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
James Pinkston
32
New Kensington, PA
Conspiracy to distribute and to possess with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl and 500 grams or more of a mixture and substance containing a detectable amount of cocaine
Life imprisonment
Money laundering conspiracy
20 years’ imprisonment
Possession with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine
40 years’ imprisonment
Jesus Ramirez
25
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Sahal Sahal
36
SeaTac, WA
Conspiracy to distribute and to possess with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl
Life imprisonment
Diamond Williams-Dorsey
29
Cleveland, OH
Conspiracy to distribute and to possess with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl
Life imprisonment
Luis Carlos Fentanes
22
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl and 500 grams or more of a mixture and substance containing a detectable amount of cocaine
Life imprisonment
Jesus Aaron Garcia
24
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Jaime Ledesma
26
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Henry Rivera Ortega
20
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Adrian Lopez Rivera
22
Phoenix, AZ
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Michele Soto
20
Phoenix, AZ
Money laundering conspiracy
20 years’ imprisonment
Jesus Miguel Vibanco-Garcia
28
Mexico
Conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine
Life imprisonment
Tennessee Man Sentenced to over 3 Years in Federal Prison for Illegal Possession of Firearm in HopkinsvilleRead the Press Release
Bowling Green, KY – A Ripley, Tennessee, man was sentenced to 3 years and 1 month in federal prison for possession of a firearm by a convicted felon in Hopkinsville.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Jason Newby of the Hopkinsville Police Department made the announcement.
According to court documents, Nicholas Bryant Starks, 44, was sentenced to 37 months in federal prison, followed by 3 years of supervised release, for possession of a firearm by a convicted felon. On October 24, 2021, in Hopkinsville, Kentucky, Starks possessed a Taurus, model PT 738, .380 caliber semiautomatic pistol.
Starks was prohibited from possessing a firearm due to a 2002 felony conviction for Armed Bank Robbery out of the Western District of Tennessee at Memphis.
There is no parole in the federal system.
The case was investigated by the ATF Bowling Green Field Office and the Hopkinsville Police Department.
Assistant U.S. Attorney Seth Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Tama Man Sentenced to over Two Years in Prison for Assaulting His GirlfriendRead the Press Release
A Tama man who punched and kicked his girlfriend in the face was sentenced today to nearly there years in federal prison.
Bryce Saunders Kapayou, age 43, from Tama, Iowa, received the prison term after a September 13, 2023 guilty plea to domestic abuse assault.
Evidence at the plea hearing and sentencing showed that in April 2023, Kapayou punched and kicked his girlfriend in the face. She was transported to a local hospital where she was treated for substantial injuries to her nose and face. Evidence showed that Kapayou was drunk and in possession of a machete at the time of the assault. Kapayou has a long criminal history and has 51 prior criminal convictions.
Kapayou was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Kapayou was sentenced to 31 months’ and 16 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Meskwaki Nation Police Department and the FBI.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-46.
Follow us on Twitter @USAO_NDIA.
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 Edmond Lewis Jr., age 41, of Stilwell, Oklahoma, was sentenced to 72 months in prison for possessing a firearm after a felony conviction.
The charges arose from investigations by the Adair County Sheriff’s Office and the Federal Bureau of Investigation.
On January 18, 2023, Lewis pleaded guilty to the offense. On November 25, 2020, law enforcement conducting a traffic stop discovered Lewis, a convicted felon, with a handgun and a rifle in the car. During the plea hearing, Lewis agreed that he knew at the time of the traffic stop that he was barred from possessing firearms.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Lewis will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys T. Cameron McEwen and Kevin Gross represented the United States.
St. Paul Man Charged for Armed Robbery of Postal EmployeesRead the Press Release
MINNEAPOLIS – A St. Paul man has been charged in a federal criminal complaint for armed robbery of postal employees on two separate occasions, announced U.S. Attorney Andrew M. Luger.
According to court documents, on November 18, 2023, Rubin David Adams, 26, approached a USPS letter carrier in Edina, pointed a handgun at them, and demanded the “mailbox key,” which the victim did not have. Instead, the victim handed over two sets of USPS vehicle keys. The following day, Adams approached another USPS letter carrier in Brooklyn Center. Adams pointed a handgun at the victim’s head, demanded and stole two USPS mailbox keys. Mailbox keys are valuable to criminals who use them to steal mail, cash, checks, and other financial instruments. Mailbox keys are the property of USPS, and it is a federal offense for an unauthorized person to possess one.
“This is part of an alarming trend that law enforcement is seeing around country, including here in the Twin Cities,” said U.S. Attorney Luger. “We take this issue very seriously and will continue to ensure postal employees are safe and free from violence as they serve their communities.”
The complaint charges Adams with two counts of assault and attempted robbery, while putting a person’s life in jeopardy with the use of a deadly weapon. The charge of robbery of any person having lawful charge, control, or custody of any mail matter or of any money or other property of the United States provides for a sentence of up to 25 years in prison, at least three years of supervised release and a fine of up to $250,000. Adams made his initial appearance last week in U.S. District Court before Magistrate Judge Dulce J. Foster. A preliminary and detention hearing has been scheduled for January 9, 2024.
“The safety and security of Postal Service employees and customers is core to the mission of the U.S. Postal Inspection Service, and this incident is a tremendous example of how local, state, and federal partners can join together to quickly and safely resolve situations like this,” said Inspector in Charge Bryan Musgrove. “Mr. Adams’s alleged crimes showed blatant disregard for human decency and overall greed. I would like to thank our law enforcement partners for their efforts.”
Law enforcement encourages anyone who may have mailed letters or checks from Brooklyn Center and Brooklyn Park that did not reach their destination to contact the USPIS Tip Line at 612-884-7962 or [email protected].
This case is the result of an investigation conducted by the U.S. Postal Inspection Service, the FBI, Hennepin County Violent Offenders Task Force, Edina Police Department, the Brooklyn Center Police Department, the St. Louis Park Police Department, and the Minnesota Alcohol and Gambling Enforcement Division.
Assistant U.S. Attorney Emily A. Polachek is prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Russian National Residing in Sacramento Pleads Guilty to Attempting to Provide Material Support to a Foreign Terrorist OrganizationRead the Press Release
SACRAMENTO, Calif. — Murat Kurashev, 36, a Russian national who resided in Sacramento, pleaded guilty today to attempting to provide material support to a designated foreign terrorist organization, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Kurashev attempted to provide financial support to Hayat Tahrir al-Sham (HTS), which is designated by the Secretary of State as a foreign terrorist organization that engages in terrorism in Syria. Between July 2020 and February 2021, Kurashev used money transfer services to send approximately $13,000 to two known couriers of an HTS fundraiser. Records obtained from the money transfer services documented multiple transactions from Kurashev to the couriers in Turkey, usually in increments of $1000. The couriers retrieved the funds often within 24 hours of transfer. Surveillance footage from money transfer businesses captured Kurashev during some of the transactions.
Social media and encrypted mobile messaging discussions between Kurashev and the fundraiser made clear that Kurashev was fully aware of the fundraiser’s violent extremist ideology and participation and work on behalf of HTS. Kurashev stated that he wished he could join the fight in Syria as a mujahideen and regretted that he could only provide financial support. As their conversations showed, Kurashev and the fundraiser believed that providing money in support of the HTS fighters was tantamount to being engaged in violent jihad.
According to court documents, Kurashev followed the fundraiser’s online presence and various social media accounts, which included solicitations for money to purchase military equipment, boots, clothing, firearms, and, in one case, a motorcycle. Forensic analysis of Kurashev’s Apple iCloud account revealed it to be replete with violent extremist content, including a video depicting HTS fighters.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Heiko P. Coppola and Trial Attorney Dmitriy Slavin of the Department of Justice’s Counterterrorism Section are prosecuting the case.
Kurashev is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on March 18, 2024. Kurashev faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Russian National Pleads Guilty to Attempting to Provide Material Support to a Foreign Terrorist OrganizationRead the Press Release
Murat Kurashev, 36, of Sacramento, California, pleaded guilty to a single-count indictment charging him with attempting to provide material support to a designated foreign terrorist organization.
According to court documents, Kurashev attempted to provide financial support to Hayat Tahrir al-Sham (HTS). HTS was designated as a foreign terrorist organization by the Secretary of State and engages in terrorism in Syria. Between July 2020 and February 2021, Kurashev used money transfer services to send approximately $13,000 to two known couriers of an HTS fundraiser. Records obtained from the money transfer services documented multiple transactions from Kurashev to the couriers in Turkey usually in increments of $1,000. The couriers retrieved the funds often within 24 hours of transfer. Surveillance footage from money transfer businesses captured Kurashev in the midst of some of the transactions.
Law enforcement’s review of social media and encrypted mobile messaging discussions between Kurashev and the fundraiser, demonstrated that they believed that providing money in support of the HTS’s fighters was tantamount to being engaged in violent jihad. During these conversations with the fundraiser, Kurashev mentioned that he wished he could join the fight in Syria as a mujahideen and regretted that he could only provide financial support. These conversations make clear that Kurashev was fully aware of the fundraiser’s violent extremist ideology and participation and work on behalf of HTS.
Additional evidence seized by the FBI revealed that Kurashev followed the fundraiser’s online presence and various social media accounts. Some of fundraiser’s social media accounts that were viewed by Kurashev included solicitations for money to purchase military equipment, boots, clothing, firearms, and, in one case, a motorcycle. FBI forensic analysis of Kurashev’s Apple iCloud account revealed it to be replete with violent extremist content, including a video depicting HTS fighters. It appears that Kurashev watched this video while driving his work van along Interstate 80.
Kurashev faces a maximum penalty of 20 years in prison and up to a $250,000 fine. Sentencing is set for March 18. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch, and U.S. Attorney Phillip A. Talbert made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorney Heiko P. Coppola for the Eastern District of California and Trial Attorney Dmitriy Slavin of the National Security Division’s Counterterrorism Section are prosecuting the case.
Richmond County man sentenced to prison for trafficking illegal synthetic drugsRead the Press Release
AUGUSTA, GA: A Richmond County man who operated a mail-order business selling illegal synthetic drugs has been sentenced to federal prison.
Conway James Rhinehart, 43, of Hephzibah, Ga., was sentenced to 108 months in prison after pleading guilty to Possession with Intent to Distribute Controlled Substances, specifically a-PHP, a synthetic cannabinoid, and Eutylone, commonly known as “bath salts,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Rhinehart to forfeit $50,000 in seized proceeds and to serve three years of supervised release upon completion of his prison term. There is no parole in the federal system.
“Conway James Rhinehart was so brazen in his illegal drug-selling operation that even after he was indicted and freed on pre-trial release, he continued selling illegal drugs until taken into federal custody,” said U.S. Attorney Steinberg. “This sentence shuts down his operation and holds him accountable for his illegal activity.”
As described in court documents and testimony, investigators in 2020 began seizing packages containing a-PHP and Eutylone sent from various overseas locations to Rhinehart under multiple aliases and addresses in the Augusta area. Rhinehart was packaging, reselling and shipping the drugs nationwide through a website, marketing them as “energy powders” or “energy crystals.”
Rhinehart was indicted in June 2022, and after being released on bond was arrested after again attempting to operate his mail-order business. He pled guilty in September 2023.
“Removing this offender from the Richmond County community will effectively disrupt a major illegal synthetic drug operation,” said Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration. “This defendant will now spend well-deserved time in prison.”
“This sentencing sends a very clear message that Postal Inspectors will relentlessly investigate individuals who try to illegally utilize the mail system to transport drugs,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service. “We thank our law enforcement partners for their invaluable help in bringing this defendant to justice.”
The case was investigated by the U.S. Postal Inspection Service, Customs and Border Protection, Homeland Security Investigations, the Drug Enforcement Administration, and the Pennsylvania State Police, and prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys L. Alexander Hamner, Matthew A. Josephson and Jeremiah L. Johnson.
Redwater Woman Pleads Guilty to Conspiracy to Distribute over 50 Grams of MethamphetamineRead the Press Release
Jackson, MS – A Leake County woman pleaded guilty in federal court to conspiracy to possess with intent to distribute over 50 grams of methamphetamine.
According to court documents, in May of 2021, Kelsy Ann Billie, 24, conspired to distribute over fifty grams of methamphetamine near the Pearl River Community of the Mississippi Band of Choctaw Indians. Billie was indicted by a federal grand jury in September 2023.
Billie is scheduled to be sentenced on April 25, 2024, and faces a maximum penalty of forty years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd Gee, Special Agent in Charge Brad Byerley of the Drug Enforcement Administration, and Whitney Woodruff, Regional Agent in Charge of the Bureau of Indian Affairs, made the announcement.
The Choctaw Police Department, the U.S. Department of Interior Bureau of Indian Affairs, and the U.S. Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Kevin J. Payne and Special Assistant U.S. Attorney Brian K. Burns prosecuted the case.
Ponzi Scheme Cost Investors in Missouri, Elsewhere Millions, Indictment SaysRead the Press Release
ST. LOUIS – A former Texas-based investment adviser has been indicted in St. Louis and accused of running a Ponzi scheme that cost investors tens of millions of dollars.
Siddharth Jawahar, 36, was indicted by a grand jury in U.S. District Court in St. Louis Dec. 21, 2023, on three counts of wire fraud and one count of investment adviser fraud.
The indictment was sealed until Monday, when the FBI arrested Jawahar in Miami, Florida. He made an initial appearance later in the day in U.S. District Court in the Southern District of Florida. The government is seeking to have Jawahar held in jail until trial.
Jawahar ran a Texas-based investment company called Swiftarc Capital LLC. From July 2016 through roughly December 2023, Jawahar took in more than $35 million from Swiftarc investors, but spent about $10 million on investments in companies, the indictment says. Jawahar used the money from new investors to repay older investors and to fuel an extravagant lifestyle that included flights on private planes, stays at luxury hotels and expensive outings at lavish restaurants, the indictment says.
“The losses alleged in the indictment would make this one of the largest Ponzi-schemes in the history of the Eastern District of Missouri,” said U.S. Attorney Sayler A. Fleming.
Manhattan District Attorney Alvin Bragg, Jr., said, “At the Manhattan D.A.’s Office, we are laser-focused on combatting white collar crime, just like our federal partners. Our top-notch team followed the money and developed a significant investigation uncovering allegations of fraud that spread far beyond New York. We were pleased to assist the Eastern District of Missouri on this investigation which led to a major federal indictment.”
"Some fraudsters come up with sophisticated schemes that are hard to detect," said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. “We still encourage searching the person’s name and company on the internet for any red flags and trusting your gut."
Swiftarc had initially invested in a diverse array of securities, but in 2015, Jawahar began investing the majority of client funds in a single investment, Philip Morris Pakistan (PMP). Eventually, 99% of client funds were consolidated into the PMP investment, the indictment says. Jawahar did not inform investors of a dramatic decline of the value of PMP, instead falsely representing to investors that shares were trading at a much higher price, it says, and misleading investors about their profits.
The indictment accuses Jawahar of misleading someone in eastern Missouri into believing that a series of investments totaling $175,000 would go into specific companies. A New York investor was told the same about $350,000 and an Ohio investor heard the same about $250,000, the indictment says.
On June 7, 2022, the Texas State Securities Board revoked Swiftarc Capital’s authority to conduct investment activities and ordered Jawahar to “cease and desist from engaging in fraud.” The indictment says Jawahar did not notify investors about that cease-and-desist order before taking their money and continued to fraudulently solicit and receive investor funds, including $1 million from an investor weeks after the state board’s order.
The wire fraud charges are each punishable by up to 20 years in prison and a $250,000 fine, or both. The investment adviser fraud charge is punishable by up to five years in prison and a $10,000 fine, or both.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The FBI and the Manhattan District Attorney’s Office investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Pearl River Man Pleads Guilty to Aggravated Sexual Abuse of a MinorRead the Press Release
Jackson, MS – A Neshoba County man pleaded guilty to aggravated sexual abuse of a minor on the Choctaw Indian Reservation.
According to court documents, in September of 2017, Scottie Amos, 26, committed a sexual act on a minor who was between the ages of 12 and 16 in the Tucker Community of the Mississippi Band of Choctaw Indians. Amos was indicted by a federal grand jury in September 2022.
Amos is scheduled to be sentenced on April 11, 2024, and faces a maximum penalty of life in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Amos has previously pleaded guilty to burglary and awaits sentencing in that case as well.
U.S. Attorney Todd Gee and Acting Special Agent in Charge Jessica Orench of the Federal Bureau of Investigation made the announcement.
The Choctaw Police Department and the Federal Bureau of Investigations all investigated the case.
Assistant U.S. Attorney Kevin J. Payne and Special Assistant U.S. Attorney Brian K. Burns prosecuted the case.
Orleans and Jefferson Parish Men Indicted for Violations of the Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LA – NAIROBI DAVIS, age 24, JACOB ESTEM, age 21, KENNELIUS BROWN, age 35, and DORNELIUS BROWN, age 33, all of New Orleans, and DEJON RICHARDSON, age 27, TYREESE QUINCY, age 24, and DARIUS QUINCY, age 26, all of Terrytown, Louisiana, were indicted on November 11, 2023, in a 12-count superseding indictment, announced United States Attorney Duane A. Evans. All were charged with Conspiracy to Distribute and Possession with Intent to Distribute Fentanyl, Cocaine, and Marijuana, in violation of 21 U.S.C. § 846.
According to the superseding indictment, from late 2022 until May of 2023, DAVIS, ESTEM, KENNELIUS BROWN, DORNELIUS BROWN, RICHARDSON, TYREESE QUINCY, and DARIUS QUINCY distributed fentanyl throughout the New Orleans area and possessed marijuana, cocaine, and fentanyl. Throughout this investigation, loaded firearms were found nearby the controlled substances, indicative of the firearms’ use in furtherance of the drug trafficking crimes.
DAVIS was also charged with Distribution of Fentanyl, in violation of 21 U.S.C. § 841(a)(1), Possession of a Firearm in Furtherance of Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)(1)(A), Possession with Intent to Distribute Cocaine and Marijuana, in violation of 21 U.S.C. § 841(a)(1) and Using or Maintaining Drug Premises, in violation of 21 U.S.C. § 856(a)(1).
ESTEM was also charged with Distribution of Fentanyl, in violation of 21 U.S.C. § 841(a)(1), and Possession of a Firearm by a Felon, in violation of 18 U.S.C. § 922(g).
KENNELIUS BROWN was also charged with Possession with Intent to Distribute Fentanyl, in violation of 21 U.S.C. § 841(a)(1), Possession of a Firearm in Furtherance of Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)(1)(A), Possession of a Firearm by a Felon, in violation 18 U.S.C. § 922(g).
RICHARDSON was also charged with Possession with Intent to Distribute Cocaine and Marijuana Fentanyl, in violation of 21 U.S.C. § 841(a)(1), Possession of a Firearm in Furtherance of Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)(1)(A) and Using or Maintaining Drug Premises, in violation of 21 U.S.C. § 856(a)(1).
TYREESE QUINCY was also charged with Possession with Intent to Distribute Cocaine and Marijuana Fentanyl, in violation of 21 U.S.C. § 841(a)(1), and Possession of a Firearm in Furtherance of Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)(1)(A).
DARIUS QUINCY was also charged with Possession with Intent to Distribute Cocaine and Marijuana Fentanyl, in violation of 21 U.S.C. § 841(a)(1).
Those charged with Conspiracy to Distribute and Possess with Intent to Distribute Fentanyl, Cocaine, and Marijuana, ( list names ) face a minimum of five years imprisonment up to forty years imprisonment, up to a $5,000,000 fine, and at least 4 years of supervised release.
Those charged with Possession of a Firearm by a Felon, DAVIS, ESTEM, and KENNELIUS BROWN, face up to fifteen years imprisonment, up to a $250,000 fine, and up to three years of supervised release.
Those charged with Possession of a Firearm in Furtherance of Drug Trafficking Crime, DAVIS, KENNELIUS BROWN, RICHARDSON, and TYREESE QUINCY, face a minimum of five years imprisonment up to fifteen years imprisonment, up to a $250,000 fine, and up to five years of supervised release.
Those charged with Distribution of Fentanyl, DAVIS and ESTEM, face up to twenty years imprisonment, up to a $1,000,000 fine, and at least 3 years of supervised release.
Those charged with Using or Maintaining Drug Premises, DAVIS and RICHARDSON, face up to twenty years imprisonment, up to a $500,000 fine, and up to 3 years of supervised release.
RICHARDSON, TYREESE QUINCY, and DARIUS QUINCY, who were charged with Possession with Intent to Distribute face up to twenty years imprisonment, up to a $1,000,000 fine, and at least 3 years supervised release.
KENNELIUS BROWN, who was also charged with Possession with Intent to Distribute, faces a minimum of five years imprisonment up to forty years imprisonment, up to a $5,000,000 fine, and at least 4 years of supervised release.
As to each count with which a defendant is charged, that defendant faces payment of a $100 mandatory special assessment fee.
United States Attorney Evans reiterated that the superseding indictment is merely a charge and that the guilt of the defendants must be proven 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 Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation. This case is being prosecuted by Special Assistant United States Attorney Nicholas Rayburn of the Violent Crimes Unit.
Operation Smoke and Mirrors Update: Putnam County Man Sentenced and Detroit Woman Pleads Guilty in Methamphetamine Trafficking CaseRead the Press Release
CHARLESTON, W.Va. – Today, Scott Jeremy Savage, 46, of Nitro, was sentenced to four years and three months in prison, to be followed by three years of supervised release, for conspiracy to distribute fentanyl and Dashounieque Lashay Wright, 27, of Detroit, Michigan, pleaded guilty to use of a communication facility to facilitate drug trafficking. Both admitted to their roles in a drug trafficking organization (DTO) that operated in the Charleston area.
According to court documents and statements made in court, between October 17, 2022, and March 9, 2023, Savage conspired with others to distribute quantities of fentanyl while living in Putnam County. Savage admitted to purchasing fentanyl from a co-defendant who lived in the Charleston area and to arranging transactions with this co-defendant by cell phone. Savage further admitted that the co-defendant often fronted him the fentanyl and he would pay the co-defendant back after he sold it.
On October 17, 2022, Savage sold approximately 2.23 grams of fentanyl to a confidential informant at his residence. On October 18, 2022, law enforcement officers executed a search warrant at Savage’s residence and seized approximately 2.93 grams of fentanyl, 2.2 grans of methamphetamine, and a loaded Smith & Wesson Bodyguard .380-caliber semi-automatic pistol.
On January 27, 2023, Savage exchanged phone calls and text messages with the co-defendant to arrange the purchase of a one-quarter ounce of fentanyl. Savage admitted that he believed he would have an easier time mixing that quantity with cutting agents to increase its volume and maximize his profits. Savage further admitted that he agreed with the co-defendant that he owed $445 from prior fentanyl transactions.
During a phone call the next day, Savage told the co-defendant that customers had complained about the fentanyl he had purchased the day before and asked the co-defendant to provide stronger fentanyl. Savage admitted that the co-defendant agreed to provide him with 4 to five grams of fentanyl. On March 9, 2023, Savage sold approximately 1.3 grams of fentanyl to a confidential informant at a Putnam County gas station.
Savage has a long criminal history that now includes 13 felony convictions. Savage’s prior felony convictions include attempt to operate a clandestine drug laboratory, exposure of children to methamphetamine manufacturing, possession of a controlled substance with intent to deliver, fleeing in a vehicle from a law enforcement officer in reckless indifference to the safety of others, fraud and related activity in connection with an access device, and breaking and entering.
Wright admitted that she spoke by cell phone on November 28, 2022, with a co-conspirator who directed her to deliver what turned out to be approximately 3 pounds of methamphetamine to a customer in Charleston. The co-conspirator gave Wright directions to the customer’s residence by phone. Wright admitted that she knew she was participating in a drug transaction and that the bag she gave the customer contained a controlled substance, but that she did not know the quantity of the substance or that it was methamphetamine.
Wright collected money from the customer before leaving the residence by vehicle. Law enforcement officers pulled over the vehicle following the transaction, and found an additional 6.1 pounds of methamphetamine during a search of the vehicle.
Wright is scheduled to be sentenced on April 25, 2024, and faces a maximum penalty of four years in prison, one year of supervised release, and a $250,000 fine.
Savage and Wright are among 32 individuals indicted as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 400 pounds of methamphetamine as well as 40 pounds of cocaine, 3 pounds of fentanyl, 19 firearms and $935,000 in cash.
Savage and Wright are among 27 defendants who have pleaded guilty. Indictments against the other defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
Chief United States District Judge Thomas E. Johnston presided over the hearings. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:23-cr-31 (Savage) and 2:23-cr-195 (Wright).
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Nigerian National Sentenced to 121 Months in Federal Prison for Conspiring to Launder Proceeds of Internet Fraud SchemesRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that a Nigerian national was sentenced to 121 months in federal prison for conspiring to launder money derived from internet fraud schemes. Lawal’s sentence included an order that he pay $1,460,875 in restitution to victims of the fraud schemes. U.S. District Judge Maryellen Noreika pronounced the sentence.
Olugbenga Lawal, 33, of Indianapolis, Indiana, was convicted by a federal jury of conspiring to commit money laundering on August 10, 2023. According to court documents and evidence presented at trial, Lawal worked directly with the Nigeria-based leader of an international criminal organization that defrauded individuals and businesses across the United States out of millions of dollars through sophisticated internet-based fraud schemes, including romance fraud and business email compromise schemes, and laundered the proceeds of those fraud schemes. The criminal organization frequently targeted elderly victims who believed they had fallen in love with people they had met on the internet.
Between January 2019 and June 2020, bank accounts used by Lawal and his co-conspirators to launder money on behalf of the criminal organization received millions of dollars traced directly to individuals and businesses defrauded over the internet by members of the criminal organization.
Lawal played a vital role in laundering money for the criminal organization by working to convert the fraud dollars entering his accounts into Nigerian currency accessible in Nigeria. He engaged in sophisticated import/export transactions involving the shipment of cars to Nigeria and currency exchange business transactions to facilitate the repatriation of the organization’s fraud proceeds back to Nigeria.
Three co-conspirators, Michael Hermann, Rita Assane, and Dwight Baines previously pleaded guilty to conspiracy to commit money laundering and have yet to be sentenced.
U.S. Attorney Weiss commented, “Criminal organizations around the world continue to use the internet to defraud hardworking American citizens and businesses out of millions of dollars. Too often, those victims are elderly individuals who unknowingly give up their life savings to a fraudster. My office and our law enforcement partners are committed to investigating and prosecuting the criminal actors who perpetrate those frauds and individuals, like Mr. Lawal, who launder their money.”
“Lawal went to great lengths to further this sophisticated scheme to defraud vulnerable Americans and legitimate businesses,” said Acting Special Agent in Charge R. Joseph Rothrock of the FBI'S Baltimore Field Office. “This sentence is more than just, given the unscrupulous tactics used. This case demonstrates the FBI’s resolve to hold fraudsters accountable.”
This case was investigated by FBI Baltimore Field Office’s Wilmington Resident Agency. This case was prosecuted by Assistant U.S. Attorneys Jesse S. Wenger and Meredith C. Ruggles of the United States Attorney’s Office for the District of Delaware and Trial Attorneys Mary K. Daly and Michael Grady of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), with assistance from MLARS Trial Attorneys Madeleine Case and Jasmin Salehi Fashami.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 22-cr-11.
New York Men Sentenced for Mortgage Fraud Scheme Involving Hartford Apartment BuildingsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that two New York men were sentenced today by U.S. District Judge Omar A. Williams in Hartford for engaging in a wide-ranging mortgage fraud scheme involving 24 mortgage loans on numerous multifamily housing properties in Hartford totaling nearly $50 million. JACOB DEUTSCH, 58, of Brooklyn, was sentenced to 62 months of imprisonment and four years of supervised release, and was ordered to pay a $10,000 fine, and ARON DEUTSCH, 63, of Monsey, was sentenced to five years of probation and ordered to pay a $1 million fine.
According to court documents and statements in court proceedings, Jacob Deutsch and Aron Deutsch work at B H Property Management, LLC (“BHPM”), a property management company that manages numerous multifamily housing properties in Hartford. From September 2016 through May 2021, Jacob Deutsch, who ran the day-to-day operations BHPM, and Aron Deutsch engaged in a scheme to defraud several financial institutions, government-sponsored enterprises Federal Home Loan Mortgage Company (“Freddie Mac”) and the Federal National Mortgage Association (“Fannie Mae”), and the U.S. Department of Housing and Urban Development (“HUD”) by providing them with false information overstating the value of multifamily housing properties managed by BHPM in connection with loans secured by those properties.
As part of the scheme, Jacob Deutsch provided false rent rolls and falsified leases to the victim financial institutions and their appraisers, which either overstated the number of renters by listing fictitious renters or others not actually living there, or falsely inflated the amount of rent paid by occupants. Jacob Deutsch deceived inspectors into believing that unoccupied apartments were occupied by staging the apartments with furniture and by requiring BHPM employees to falsely tell inspectors they lived there and to lie to inspectors if asked whether there were vacancies. For instance, a rent roll and income and expense summary submitted by Jacob Deutsch to CBRE Capital Markets, Inc. (“CBRE”) in June 2018 falsely represented that 16 Evergreen Avenue was 100 percent occupied when, in fact, not a single tenant resided there at the time. Later, Jacob Deutsch e-mailed CBRE pictures of money orders and checks purporting to reflect rent payments from fake tenants on the falsified rent rolls for 16 Evergreen Avenue to show proof of payment of rent when, in fact, the money orders and checks had been purchased by Aron Deutsch or BHPM employees at Aron Deutsch’s direction.
Jacob Deutsch also provided the victim financial institutions with false and inflated income statements and financials for the properties, doctored bank statements, doctored or false documents overstating the purchase price of various multifamily housing properties, and doctored checks and invoices showing false or overstated capital improvements made to those properties. The false information provided by Jacob Deutsch induced the victim financial institutions to issue loans that they otherwise would not have issued on the requested terms, or for amounts larger than they would have authorized had they been provided with truthful information. In addition, the false information induced Freddie Mac and Fannie Mae to purchase the resulting loans from the victim financial institutions, and induced HUD to issue a mortgage insurance commitment to a victim financial institution.
Jacob and Aron Deutsch were arrested on May 19, 2021.
After his arrest and while released on bond, Jacob Deutsch victimized another lender to secure an $11 million loan.
Jacob and Aron Deutsch pleaded guilty to conspiracy to commit mail fraud and wire fraud affecting a financial institution on July 12, 2022, and June 1, 2022, respectively.
Jacob Deutsch is required to report to prison on March 8.
Jacob Deutsch’s criminal history includes a wire fraud conviction in the Eastern District of New York stemming from an insurance fraud scheme. In October 2003, he was sentenced to three months of imprisonment for that offense.
This investigation was conducted by the U.S. Postal Inspection Service, the Federal Housing Finance Agency’s Office of Inspector General, and HUD’s Office of Inspector General for Investigations. The case was prosecuted by Assistant U.S. Attorneys Heather Cherry and Sarah Gruber.
New York Man Sentenced for Fentanyl TraffickingRead the Press Release
BOSTON – A New York man was sentenced on Jan. 5, 2024 in federal court in Springfield for drug trafficking charges involving fentanyl.
Chanty Reynoso Vasquez, 28, of Bronx, N.Y., was sentenced by U.S. District Judge Mark G. Mastroianni to two years in prison. In July 2023, Reynoso Vasquez pleaded guilty to possession with intent to distribute 400 grams or more of fentanyl.
According to court documents, Reynoso Vasquez brought over 30,000 bags of fentanyl laced heroin from the Bronx to Springfield on March 30, 2022.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; and Springfield Police Commissioner Cheryl Clapprood made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of the Springfield Branch Office prosecuted the case.
National City Man Sentenced for Transporting Teens for ProstitutionRead the Press Release
NEWS RELEASE SUMMARY – January 5, 2024
SAN DIEGO – Kenneth Tenorio of National City was sentenced in federal court today to 106 months in prison for transporting two female teens from San Diego to Phoenix, Arizona and El Paso, Texas, for the purpose of prostitution.
U.S. District Court Judge Cathy Bencivengo admonished the defendant for his treatment of victims, saying: “You just took advantage of their vulnerabilities to put money in your pocket.” She noted the maximum sentence of 120 months was appropriate but gave Tenorio credit for the time he spent in custody in Texas on local charges prior to the federal proceedings.
According to court records, Tenorio’s conduct spanned multiple states and involved multiple victims, including juveniles. The defendant exploited women and minors who had been removed from their homes and placed in the foster care system as part of his overall scheme to profit from their commercial sex work.
Tenorio pleaded guilty on August 8, 2023, admitting that he transported two of his victims from California to Arizona and Texas for the purpose of offering them for commercial sex for his own financial gain. The defendant used his Megapersonals account – a dating website that is frequently used to solicit prostitution – to post commercial sex advertisements featuring the two victims wearing lingerie. The defendant expected his victims to provide him with a portion of the proceeds they earned from engaging in commercial sex acts in these various locations.
According to his plea agreement, beginning in September 2020, the defendant also trafficked a 15-year-old minor identified as JF1. The defendant knew JF1 was a minor and nonetheless sent text messages to JF1 for the purpose of recruiting and enticing her to engage in prostitution.
The plea agreement reflects that in October 2020, JF1 stayed with the defendant at his residence in National City, California, and he used a false California identification to post online commercial sex advertisements featuring her. He also instructed her on how to engage in prostitution on “the blade” – a slang term that refers to an area of town where prostitutes/sex workers solicit sex-buyers – and informed her that he would provide protection for a fee. The defendant admitted that JF1 worked “the blade” for him a number of times in October 2020, and each time, he drove her there and picked her up, collecting a portion of the illicit proceeds she earned.
“Sex trafficking is a deplorable crime that impacts victims for a lifetime,” said U.S. Attorney Tara McGrath. “This sentence brings justice to the victims and the community is safer with this defendant off the streets. People being exploited are often overlooked and isolated. If you suspect someone is in an unsafe situation or they are being controlled by a “pimp,” romantic partner, manager or employer, or anyone who monitors their movements, their spending and/or their communications, please report it to law enforcement. If we know about it, we can offer help.”
“This lengthy sentence serves as an appropriate punishment for the defendant’s role in exploiting multiple victims for the sole purpose of financial gain, including preying upon a minor,” said Chad Plantz, special agent in charge for HSI San Diego. “Now behind bars, this man cannot participate in the lowest form of humanity – placing our most vulnerable population in harm’s way. HSI and our partnered agencies are committed to aggressively targeting those who continually victimize people for profit.”
“Predators like Mr. Tenorio take advantage of vulnerable people and underage victims. They alternate locations, thinking law enforcement won’t catch on. But that’s not true, and the results of this case as well as this substantial sentence should be a warning to other criminals,” said Chula Vista Police Chief Roxana Kennedy. “I’m proud of our detectives for playing a key role in the initiation and follow up of this investigation. The Chula Vista Police Department remains dedicated to working with all of our law enforcement partners and community organizations to combat sex trafficking and hold those who participate in these unconscionable acts accountable.”
January is National Human Trafficking Prevention Month, a time to raise awareness and educate the public about how to identify and prevent this crime. Indicators that someone is being trafficked include frequent running away; sudden separation or isolation from friends and loved ones; changes in behavior, appearance, and attire; new friend groups; unexplained new or multiple cell phones; and secrecy with phones and social media.
If you believe you may know someone who is in trouble, held in a forced work situation, or being exploited, please contact Homeland Security Investigations at 1-866-347-2423, the FBI, your local police department, the sheriff, or the National Human Trafficking Hotline at 1-888-373-7888.
“We can all do our part to protect the most vulnerable among us,” McGrath said. “Working together, we can find more of the people in need, offer them support, and deliver justice to those who would trade freedom for profit.”
This case is being prosecuted by Assistant U.S. Attorney Jill S. Streja.
DEFENDANTS Case Number 22cr2746-CAB
Kenneth Tenorio 54 National City, CA
SUMMARY OF CHARGES
Transportation for Purposes of Prostitution – Title 18, U.S.C., Section 2421
Maximum penalty: Ten years in prison and $250,000 fine
AGENCIES
The investigation was led by Homeland Security Investigations, the Chula Vista Police Department, and the San Diego Human Trafficking Task Force, a regional, multi-agency effort led by the California Department of Justice dedicated to supporting survivors and holding traffickers accountable. The task force is comprised of numerous federal, state, and local agencies, as well as the Southwest Border High Intensity Drug Trafficking Area program. The investigation was also supported by the San Diego District Attorney’s Office.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.
Michigan Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Larry Williams Jr., 52, of Pontiac, Michigan, pleaded guilty today to distribution of methamphetamine.
According to court documents and statements made in court, on February 9, 2023, Williams sold approximately 1 gram of methamphetamine and a quantity of heroin to a confidential informant at a Washington Avenue location in Huntington. Williams admitted to the transaction and further admitted to selling quantities of methamphetamine and heroin to a confidential informant on January 31, 2023, and March 16, 2023, in Huntington.
On March 21, 2023, law enforcement officers executed a search warrant at Williams’ Adams Avenue residence in Huntington and found approximately 134 grams of methamphetamine, 15 grams of heroin, 6 grams of fentanyl, and 18 grams of cocaine base, also known as “crack.” Officers also found digital scales, a drug press and approximately $292 in the residence during the search. Williams admitted to possessing and intending to distribute the controlled substances.
Williams is scheduled to be sentenced on April 22, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Finney is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-87.
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Mexican National Sentenced for Bakersfield-Based Methamphetamine RingRead the Press Release
FRESNO, Calif. — Alberto Gomez-Santiago, 38, a Mexican national residing in Arvin, was sentenced today to four years and nine months in prison for conspiring to distribute and possess with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in March 2021, Gomez delivered 26 pounds of methamphetamine to co-defendants Jorge Calderon-Campos, 42, a Mexican national residing in Bakersfield, and Mark Garcia, 23, of Bakersfield. Law enforcement officers later seized the drug from Garcia’s vehicle during a traffic stop. This transaction was one of many transactions involving Calderon-Campos, who was the target of a wiretap investigation that resulted in the seizure of more than 86 pounds of methamphetamine and 1 kilogram of heroin. The wiretap investigation also uncovered an illegal cockfighting enterprise involving Calderon-Campos, who is charged in a second indictment with violations of the Animal Welfare Act. An associate, Horacio Ortega-Martinez, 36, a Mexican national residing in Bakersfield, previously entered a guilty plea to the unlawful possession of gamecocks for an animal fighting venture and was sentenced to 18 months in prison.
Francisco Javier Torres Mora, aka Johnathan Benjamin Torres Luna, 30, a Mexican national residing in Bakersfield, previously entered a guilty plea to possessing with intent to distribute 60 pounds of methamphetamine and is scheduled for sentencing on Jan. 29, 2024. Charges remain pending again Calderon-Campos, Garcia, Jose Beltran-Chaidez, 68, a Mexican national residing in Bakersfield, and two other co-defendants. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was the product of an investigation led by Homeland Security Investigations and the Drug Enforcement Administration with assistance from the U.S. Department of Agriculture Office of Inspector General (USDA-OIG), the U.S. Marshals Service, the U.S. Customs and Border Protection, the U.S. Secret Service, the Bureau of Land Management, the Kern County High Intensity Drug Trafficking Area Task Force, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Kern County Sheriff's Office, the Kern County Probation Department, and the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Mason County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – James Franklin Will III, 42, of Point Pleasant, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on June 15, 2023, law enforcement officers encountered Will while responding to reports of a suspicious person at a Point Pleasant residence. The residents told officers that Will had entered their home with two firearms. Officers recovered a loaded Sig Sauer AR-15 .223-caliber rifle and a Smith & Wesson .22-caliber revolver at the residence. Will admitted to possessing the firearms.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Will knew he was prohibited from possessing a firearm because of his prior felony convictions for attempt to commit a felony on December 7, 2015, and conspiracy on November 13, 2017, both in Mason County Circuit Court, and for unlawful possession of a deadly weapon by a felon in Wood County Circuit Court on April 16, 2021.
Will is scheduled to be sentenced on April 29, 2024, and faces a maximum penalty of 15 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Point Pleasant Police Department and the Mason County Sheriff’s Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie Taylor is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-148.
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Man Charged with Federal Drug OffenseRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that Jeremy Isaac Lopez appeared in federal court on a criminal complaint charging him with possession with intent to distribute a mixture and substance containing a detectable amount of methamphetamine. Lopez, 28, will remain in temporary custody pending a detention hearing.
According to the criminal complaint, on April 19, 2023, officers from the Pueblo of Pojoaque Tribal Police Department attempted to detain Lopez at the Cities of Gold Casino in Santa Fe on a arrest warrant for failure to comply with his conditions of release related to a pending state armed robbery charge. Officers observed Lopez inside the casino and followed him outside to his car where he got in the driver’s seat of a car. When officers commanded Lopez to exit the vehicle, Lopez put the vehicle in drive and accelerated forward, smashing into a parked vehicle. Officers contained and disabled the vehicle. Lopez was then removed from the vehicle and placed under arrest.
A search incident to the arrest located approximately 12 grams of suspected methamphetamines, on Lopez’s person as well as an additional 7 grams of suspected Heroin and 53 grams of suspected Fentanyl in the vehicle.
A criminal complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted of the most serious allegation, Lopez faces 20 years in prison.
The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case with the assistance of the Pueblo of Pojoaque Tribal Police Department and Espanola Police Department. Assistant U.S. Attorney Robert James Booth II is prosecuting the case.
View the Criminal Complaint# # #
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Malden Man Pleads Guilty to Distributing Fentanyl and Using and Trafficking Stolen Identities and Credit CardsRead the Press Release
BOSTON – A Malden man has pleaded guilty in federal court in Boston to distributing fentanyl and using stolen identities to conduct transactions and obtain credit cards.
Derick Coulanges, a/k/a/ “Casa,” 28, pleaded guilty on Jan 5, 2024 to distribution and possession with intent to distribute fentanyl; possession of five or more identification documents with intent to use them unlawfully; and use of and trafficking in unauthorized access devices with intent to defraud to obtain property valued over $1,000. U.S. District Court Judge Indira Talwani scheduled sentencing for April 12, 2024. Coulanges was charged by criminal complaint in July 2023.
In January and February 2023, Coulanges was recorded selling a cooperating witness 50 grams of fentanyl in Coulanges’ Mercedes Benz. In the recordings, Coulanges also offered to procure counterfeit driver’s licenses for the cooperating witness that contained stolen personal identifying information (PII). Coulanges would go on to explain the manner in which a counterfeit driver’s license bearing stolen PII could be utilized to open bank accounts and obtain credit cards to purchase items.
In March 2023, during a search of Coulanges’ Malden apartment which he had obtained using a drug customer’s stolen identity, approximately 28 grams of methamphetamine was located. A search of Coulanges’ Mercedes Benz revealed six driver’s licenses bearing stolen PII and one counterfeit license that bore Coulanges’ photograph but contained stolen PII of an individual from Ohio. A subsequent investigation revealed that the individuals associated with the driver’s licenses had been the victims of identity theft and had bank accounts and credit cards opened in their name. The counterfeit driver’s license bearing Coulanges’ photograph had been used to open bank accounts, apply for loans and obtain credit cards. Surveillance footage was located depicting Coulanges opening the accounts and then utilizing the fraudulently obtained credit cards to conduct transactions at various retailers, including at two jewelry stores where he purchased approximately $12,000 in jewelry.
The charge of distribution and possession with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of possession of five or more identification documents with intent to use them unlawfully provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to $250,000. The charge of use of unauthorized access devices to fraudulently obtain more than $1,000 provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
Larue County Couple Sentenced to over Two Years in Federal Prison for Conspiring to Sell Hydrocodone and Oxycodone Stolen from PharmacyRead the Press Release
Louisville, KY – A Larue County, Kentucky, couple was sentenced to 2 years and 9 months in federal prison today for conspiring to steal hydrocodone and oxycodone from a pharmacy to sell.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, Commissioner Phillip Burnett, Jr. of the Kentucky State Police, and Acting Inspector General David T. Lovely of the Kentucky Cabinet for Health and Family Services Office of Inspector General made the announcement.
According to court records, Ashley Ramsey-Wilmoth, 41, and Stephen Troy Wilmoth, 46, were both sentenced to 2 years and 9 months in prison, followed by a 3-year term of supervised release, fined $2500.00 and ordered to pay restitution in the amount of $18,728.59 for one count of conspiracy to commit theft of medical products and one count of conspiracy to unlawfully distribute controlled substances. Ashley Ramsey-Wilmoth, an employee of Century Medicines, a retail pharmacy in the supply chain for oxycodone and hydrocodone, took unopened bottles of oxycodone and hydrocodone from Century Medicines prior to the oxycodone and hydrocodone being made available for retail purchase by a consumer. She then provided the oxycodone and hydrocodone to her husband, Stephen Troy Wilmoth, to sell and distribute.
There is no parole in the federal system.
This case was investigated by the DEA, the Kentucky State Police, and the Kentucky Cabinet for Health and Family Services Office of Inspector General. This case was part of the Department of Justice’s 2023 National Health Care Fraud Enforcement Action announced in June 2023.
Assistant U.S. Attorney Joe Ansari prosecuted the case.
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Laredo dealer set to appear for fentanyl-related deathRead the Press Release
LAREDO, Texas – A federal grand jury has returned an indictment against a 31-year-old resident of Laredo for distributing fentanyl which caused the death of another person, announced U.S. Attorney Alamdar S. Hamdani.
Kevin Ramirez is set to make his initial appearance before U.S. Magistrate Judge Christopher dos Santos at 9:30 a.m. Authorities took him into custody Jan. 5.
The two-count indictment, returned Dec. 27, 2023, alleges Ramirez distributed fentanyl, a schedule II controlled substance, to another individual May 13, 2023. That person subsequently died after using the drug, according to the charges.
Ramirez is also charged with one count of possession with the intent to distribute fentanyl.
If convicted of the distribution resulting in death charge, Ramirez faces a minimum of 20 years and up life in federal prison. The other count carries a possible sentence of up to 20 years. He may also be ordered to pay a possible $1 million maximum fine.
The Drug Enforcement Administration, Laredo Police Department, Homeland Security Investigations, Customs and Border Protection, Border Patrol and Webb County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brian Bajew is prosecuting the case.
This case is being prosecuted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF is the largest anti-crime task force in the country. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
More information on the dangers of fentanyl can be found on the DEA’s website. #OnePillCanKill
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Justice Department and the Department of the Navy Warn CLJA Claimants Against Fraudulent SchemesRead the Press Release
Today the Justice Department and the Department of the Navy (Navy) issued the following fraud alert to inform individuals filing a claim or lawsuit under the Camp Lejeune Justice Act (CLJA) of 2022 about fraudulent attempts to obtain personal information or monetary payments from potential claimants.
Due to growing concerns over reports that unscrupulous people and companies are seeking or sought to obtain personal information from CLJA claimants or otherwise defraud them, the Justice Department and Navy advise claimants and their attorneys to be cautious of potentially fraudulent activity through telephone calls or email solicitations.
Claimants who receive calls or emails from individuals attempting to collect money or personal information in connection with their CLJA claim should contact their attorneys to report this activity. Claimants who are not represented by counsel that receive such calls or emails should immediately report this activity to the Navy’s Camp Lejeune Claims Unit (CLCU), which has issued the following guidance:
- The Justice Department and the Navy will never request money or payment from you.
- If an attorney is representing you, direct all inquiries to your attorney for verification.
- Authorized emails from the Navy will be sent from [email protected], and you may forward any email message you receive to that address to verify authenticity.
- If you receive a phone call claiming to be from the CLCU or offering assistance with your claim, and you are uncertain, ask for the person’s name and position, then call the CLCU at (757) 241-6020 to verify.
- If you are represented by an attorney, the Justice Department and Navy will not contact you directly and will only contact you through your attorney.
The CLJA is a provision of the Honoring our Promise to Address Comprehensive Toxics (PACT) Act of 2022, signed into law by President Biden on Aug. 10, 2022. It allows individuals, including veterans, to file a claim with the Navy to recover for injuries caused by exposure to contaminated water at Marine Corps Base Camp Lejeune, North Carolina, for at least 30 days between Aug. 1, 1953, and Dec. 31, 1987.
Settlements under the CLJA are made pursuant to the Federal Torts Claim Act, 28 U.S. Code 2672 and 28 U.S. Code 2677. Attorneys’ fees for administrative claims cannot exceed 20%, and attorneys’ fees for cases in litigation cannot exceed 25%.
The Justice Department and Navy are committed to reviewing every claim submitted and resolving every claim as fairly and efficiently as possible. The Justice Department and Navy have jointly developed an Elective Option that will expedite the review and resolution of claims filed under the CLJA.
For more information regarding CLJA claims, please visit the Navy’s official CLJA website at www.navy.mil/clja or contact the CLCU at [email protected] or (757) 241-6020.
Justice Department Secures Agreement from Property Management Company and Landlord for Violating Servicemembers’ RightsRead the Press Release
The Justice Department announced today that it has secured a settlement with McGowan Realty LLC, doing business as RedSail Property Management (RedSail), a property management company operating throughout Hampton Roads, Virginia, to resolve allegations that the company and one of its landlords violated the Servicemembers Civil Relief Act (SCRA) by imposing early lease termination charges and additional rent on a servicemember.
In the complaint filed today, the United States alleged that the company had a policy of refusing to honor servicemembers’ lease terminations when servicemembers received permanent change of station (PCS) orders to a new duty station that was fewer than 35 miles (radius) from the dwelling unit.
“This case should put all housing providers on notice that if a servicemember meets the requirements of the federal Servicemembers Civil Relief Act, they are entitled to all its benefits, regardless of what any state law may provide,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to protecting the rights of our servicemembers and their families to ensure they do not face any unlawful treatment by housing companies or any other entities.”
“Our servicemembers sacrifice greatly, moving and deploying often in support of our nation’s defense,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Such moves should never create financial hardship for our servicemembers.”
The SCRA allows servicemembers to terminate a residential lease early if they receive permanent change of station orders or enter military service during the term of the lease. If the tenant terminates a lease pursuant to the SCRA, the landlord may not impose any early termination fee or rent beyond the effective termination date. The SCRA places no mileage restrictions on servicemembers’ residential lease termination rights. State statutes cannot deprive servicemembers of the full scope of their rights under federal law.
The U.S. Attorney’s Office launched the investigation after a Navy legal assistance attorney reported that RedSail and a landlord had refused to honor a U.S. Navy Petty Officer First Class’ (Petty Officer) SCRA residential lease termination and were assessing early lease termination charges and additional rent against him. RedSail allegedly erroneously insisted that the Virginia Residential Landlord and Tenant Act (VRLTA) placed a 35-mile (radius) limitation on a servicemember’s SCRA residential lease termination rights. The complaint alleges that the Petty Officer paid $3,408.55 in early termination charges and additional rent to RedSail, which placed a considerable financial burden on him.
Under the proposed consent order, RedSail will pay $10,225.65 to the Petty Officer referenced in the United States’ complaint and a civil penalty. The consent order also requires that RedSail provide SCRA training to its employees and develop new policies and procedures consistent with the SCRA. RedSail and the landlord have also agreed to refrain from imposing or attempting to impose the state law’s 35-mile (radius) limitation on servicemembers who lawfully terminate a lease under the SCRA, imposing or seeking to collect any early termination charges from servicemembers or their dependents who lawfully terminate a lease pursuant to the SCRA, and denying SCRA lease terminations from servicemembers who qualify for lease termination under the SCRA. The proposed consent order is subject to approval by the court.
This case was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Civil Rights Division’s Housing and Civil Enforcement Section.
Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $481 million in monetary relief for 147,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
The civil claims settled by this Servicemembers Civil Relief Act agreement are allegations only; there has been no determination of civil liability.
View the complaint here.
View the consent order here.
Justice Department Files Statement of Interest in Lawsuit Concerning Treatment for Gender Dysphoria in Correctional SettingsRead the Press Release
The Justice Department today filed a statement of interest in a lawsuit brought in the U.S. District Court for the Northern District of Georgia challenging the denial of treatment sought for gender dysphoria in a correctional setting. The statement explains that gender dysphoria falls within the Americans with Disabilities Act (ADA)’s definition of “disability” and affirms that correctional institutions cannot deny medically appropriate care for people with gender dysphoria, no matter their particular circumstances, consistent with the Eighth Amendment.
“People with gender dysphoria should be able to seek the full protections of the Americans with Disabilities Act, just like other people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are committed to ensuring constitutional conditions inside our jails and prisons so that those detained inside these facilities, including people with gender dysphoria can live safely and receive needed medical care. The U.S. Constitution requires that people incarcerated in jails and prisons receive necessary medical care, treatment and services to address serious medical conditions.”
Doe, an incarcerated transgender woman, alleges that the Georgia Department of Corrections (GDC) has violated her rights under the ADA, the Rehabilitation Act and the U.S. Constitution by denying necessary medical care to treat her gender dysphoria. Gender dysphoria is a serious medical condition that arises when a person experiences significant distress or impairment because of an incongruence between their gender identity and assigned sex. Left untreated, individuals with gender dysphoria can experience significant adverse mental health outcomes. Doe alleges that the GDC has denied her adequate medical treatment for her gender dysphoria, including gender-affirming surgery that has been recommended by four clinicians and consistent hormone therapy. Because of the inadequate care and exacerbation of her gender dysphoria, Doe has engaged in repeated self-harm, including attempts at suicide and self-castration. Doe seeks a preliminary injunction that would grant her access to medically necessary treatment for her gender dysphoria.
“The protections of the U.S. Constitution and the Americans with Disabilities Act do not stop at the doorsteps of our jails and prisons,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “Our office remains committed to ensuring that all people with disabilities, including those with gender dysphoria, continue to receive access to such medically necessary treatments, even while they are in custody.”
The department’s statement of interest clarifies that gender dysphoria can be a covered disability under the ADA and does not fall within the ADA’s exclusion of gender identity disorders. The department’s statement also explains that prison officials violate the Eighth Amendment when they categorically refuse to provide medically necessary gender-affirming surgery to incarcerated individuals with gender dysphoria, no matter a person’s particular circumstances.
The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov.
Additional information about the Civil Rights Division’s work regarding correctional facilities is available on its website at www.justice.gov/crt/rights-persons-confined-jails-and-prisons.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. Additional information about the Civil Rights Division’s work to uphold and protect the civil and constitutional rights of LGBTQI+ individuals is available online at www.justice.gov/crt/lgbtqi-working-group. Complaints about discriminatory practices may be reported to the Civil Rights Division through its internet reporting portal at civilrights.justice.gov.
doe_v_gdc_statement_of_interest_2024.01.08.pdfJamaica Plain Man Sentenced for Bank RobberyRead the Press Release
BOSTON – A Jamaica Plain man was sentenced on Jan. 5, 2024 in federal court in Boston for a May 2022 robbery of a TD Bank in Cambridge.
Jalonni Shabazz, a/k/a “Jalonni Tucker,” 42, was sentenced by U.S. District Court Judge Indira Talwani to 63 months in prison and three years of supervised release. In August 2023, Shabazz pleaded guilty to one count of bank robbery.
On May 2, 2022, at approximately 12:49 p.m., a suspect wearing a royal blue baseball hat, gray short-sleeved T-shirt, a camouflage pattern garment around his neck and medical mask entered the TD Bank on Massachusetts Ave. in Cambridge. The suspect handed the teller a note that read, “All of the Money - No Dye packs - or alarms,” and then told the teller, “This is a robbery honey.” The teller complied with the suspect’s demands and gave cash to the suspect. The man then fled on foot after taking $2,200 cash from the teller.
During a search of the area surrounding the bank, a royal blue baseball hat, consistent with that worn by the suspect in the robbery, was located. DNA obtained from the hat belonged to Shabazz. In addition, analysis of the bank’s surveillance footage and the defendant’s Facebook account identified Shabazz’s features – including his tattoo, hair and an article of clothing – to be consistent with that of the robbery suspect.
At the time of the robbery, Shabazz was on supervised release following a 2017 federal conviction for two bank robberies for which he was sentenced to 54 months in prison.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Massachusetts State Police Interim Colonel John E. Mawn, Jr.; Boston Police Commissioner Michael Cox; and MBTA Transit Police Chief Kenneth Green made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit is prosecuting the case.
Inmate Pleads Guilty to Methamphetamine Distribution Conspiracy Inside Stillwater PrisonRead the Press Release
ST. PAUL, Minn. – An inmate has pleaded guilty to conspiring with a corrections officer to distribute methamphetamine inside the Stillwater prison, announced United States Attorney Andrew M. Luger.
According to court documents, Axel Rene Kramer, 36, an inmate who is currently serving a 288-month sentence for second degree murder, conspired with Faith Rose Gratz, 26, a former Minnesota Correctional Facility (MCF)-Stillwater corrections officer, to distribute methamphetamine within MCF – Stillwater, Minnesota’s largest high security prison facility. As part of the conspiracy, Kramer obtained wholesale quantities of prepackaged methamphetamine from sources of supply outside the prison. After Kramer and another co-conspirator inmate worked with the drug suppliers to arrange meet up times and locations, Gratz would pick up the drug packages. Gratz used her position as a prison guard to smuggle the drugs into the secure facility and then provide the drugs to Kramer while she was on duty guarding him. Gratz did this on approximately six different occasions. Gratz also smuggled into the prison multiple cell phones that she provided to Kramer. Kramer used the cell phones to communicate with people inside and outside the prison and to facilitate his drug distribution network from within the prison.
According to court documents, Kramer and Gratz exchanged hundreds of text messages with each other. The messages included communications about the drug distribution conspiracy as well as discussions about their romantic relationship. Gratz also warned Kramer about upcoming searches of inmates’ cells.
Kramer pleaded guilty on January 5, 2024, in U.S. District Court before Judge Eric C. Tostrud to one count of conspiracy to distribute methamphetamine. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, the Bayport Police Department, and the Minnesota Department of Corrections.
Assistant U.S. Attorneys Harry M. Jacobs and Matthew D. Evans are prosecuting the case.
Huntington Man Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Frank W. Basenback, 36, of Huntington, pleaded guilty today to distribution of fentanyl.
According to court documents and statements made in court, on August 8, 2023, Basenback agreed to sell heroin to a confidential informant. Basenback admitted that he sold approximately 56 grams of fentanyl to the confidential informant on the 3300 block of Harvey Road in Huntington in exchange for $1,000.
Basenback further admitted to selling a total of approximately 243 grams of fentanyl to confidential informants at the same location for a total of $4,000 during separate occasions on August 23, 2023, and September 4, 2023.
On September 14, 2023, law enforcement officers executed a search warrant a Basenback’s Haynie Road residence. Officers found approximately $42,892 in the residence and approximately 2 kilograms of fentanyl in a truck parked outside. Officers also found $711 on Basenback’s person. Basenback admitted that he possessed and intended to distribute the seized fentanyl, and further admitted that the seized cash and $14,608.69 in his bank account were drug proceeds from selling fentanyl.
Basenback is scheduled to be sentenced on April 22, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Finney is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-155.
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Honduran Native Sentenced to Prison for Being an Illegal Alien in Possession of a FirearmRead the Press Release
MIAMI – On Jan. 4, Ivis Rodriguez-Ordonez, 23, of San Pedro, Honduras was sentenced, by U.S. District Judge Aileen M. Cannon, to 24 months in prison, to be followed by three years of supervised release, following a conviction for unlawful possession of a firearm by an illegal alien.
Rodriguez- Ordonez will be subject to removal, after the completion of his sentence.
According to court documents, on July 30, 2023, U.S. Border Patrol agents conducted a traffic stop of Rodriguez-Ordonez and arrested him for being in the United States in violation of federal law. A subsequent search of Rodriguez-Ordonez’ residence revealed that he was in possession of a semi-automatic pistol and ammunition.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Acting Chief Patrol Agent Samuel Briggs, U.S. Border Patrol, Miami Sector, made the announcement.
U.S. Border Patrol-West Palm Beach investigated this case. The case was prosecuted by Assistant U.S. Attorney Justin Hoover and former Assistant U.S. Attorney Diana Acosta.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 23-CR-14036-AMC.
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Highlights from United Against Hate Community Event at St. Joseph’s Catholic ChurchRead the Press Release
Memphis, TN – The United States Attorney’s Office for the Western District of Tennessee participated in a United Against Hate outreach event bringing DOJ officials and FBI partners to community members to elevate effective strategies to prevent, report, and respond to hate crimes and incidents.
United Against Hate is a nationwide Department of Justice initiative to inform communities about hate crimes and reporting hate-related incidents. The Department launched the initiative in 2022 with the goal of building trust, opening lines of communication, and strengthening coordination between relevant partners and the community to help combat a growing number of hate and bias-related incidents since 2021.
This recent event took place on January 7 at St. Joseph’s Catholic Church in partnership with CasaLuz, a nonprofit organization that provides advocacy and resources to Hispanic/Latinx domestic violence victims in the Memphis area. The program featured U.S. Attorney Kevin Ritz, Assistant U.S. Attorney Scott Smith, Assistant U.S. Attorney Wendy Cornejo, and FBI Special Agent Jeremy Baker.
Below are photos from the event along with a video of U.S. Attorney Ritz’s opening remarks.
Remarks in Spanish
Remarks in English.The U.S. Attorney’s Office will continue to host presentations throughout the Western District of Tennessee to help communities understand what hate crimes are, how federal agencies respond to hate crimes, and what people can do to help victims. Community organizations or leaders that wish to partner with the United States Attorney’s office to explore holding such an event in their community should contact the District at 901-544-4231.
Anyone who feels they have been the victim of a hate crime or may have witnessed a hate crime should immediately report the crime to state or local police by dialing 9-1-1, then quickly report the incident to the FBI at tips.FBI.gov or by calling 1-800-CALL-FBI (1-800-225-5324). Next, please report the incident to the Department of Justice’s Civil Rights Division at civilrights.justice.gov or by contacting the Civil Rights Coordinator in the Civil Division at the U.S. Attorney’s Office at 901-544-4231.
Henderson Drug Trafficker Found with a Large Capacity Magazine Sentenced to 10 Years in PrisonRead the Press Release
ELIZABETH CITY, N.C. – A Henderson man was sentenced today to 120 months in prison for trafficking fentanyl and possession of firearms, including a firearm loaded with a large capacity magazine. On July 11, 2023, Tyrik Pettaway, 21, pled guilty to conspiracy to distribute and possess with the intent to distribute a quantity of heroin and fentanyl and possession with the intent to distribute a quantity of heroin and fentanyl.
“The unwavering dedication and relentless efforts of the Henderson Police Department have been instrumental in upholding justice and ensuring the safety of our community,” said U.S. Attorney Michael Easley. “Their exemplary commitment to teamwork among state and federal law enforcement is commendable and emboldens public trust in our justice system.”
“Our collaboration with the Eastern District of North Carolina US Attorney’s Office continues to benefit our community,” commented Henderson Police Chief Marcus Barrow. “The efforts of all involved are evident. I am hopeful this sentence gives pause to those in our community walking a similar path.”
According to court documents and other information presented in court, after receiving multiple reports that Pettaway and Neno King were dealing drugs, law enforcement conducted multiple controlled purchases of suspected heroin containing fentanyl from Pettaway and King in the Spring of 2022. In March 2022, agents executed a search warrant at a residence used by Pettaway in Henderson where they recovered a firearm with a large capacity magazine and approximately 1,100 dosage units of a substance containing fentanyl, rifle ammunition, marijuana, and drug paraphernalia.
Pettaway has prior felony convictions for possession of a stolen firearm (2020), possession with the intent to manufacture, sell, or deliver heroin (2020 and 2021), and breaking and entering to terrorize (2020). King pled guilty to drug trafficking and gun charges in March of this year and was sentenced to 180 months in prison in August.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Henderson Police Department, the Drug Enforcement Administration, the State Bureau of Investigation, and the Raleigh Police Department investigated the case and Assistant U.S. Attorney Casey L. Peaden prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00335-BO.
Hebron Man Sentenced to 3 Years for Being a Felon in Possession of FirearmsRead the Press Release
PORTLAND, Maine: A Hebron man was sentenced today in U.S. District Court in Portland for being a felon in possession of firearms.
U.S. District Judge George Z. Singal sentenced Dario Giambro, 75, to 36 months in prison followed by three years of supervised release. He was also fined $250,000.
Giambro was found guilty by a federal jury on October 11, 2023, following a two-day trial. According to evidence presented during the trial, in January 2022, Maine State Police executed search warrants at Giambro’s residence in Hebron. Investigators seized, among other things, 856 firearms—including shotguns, pistols, revolvers, and rifles—and a large amount of ammunition from the residence. Giambro is prohibited from possessing firearms due to a prior federal conviction in the District of Maine for possessing an unregistered firearm, a felony offense.
The Bureau of Alcohol, Tobacco, Firearms and Explosives administratively forfeited the 856 firearms and ammunition found in Giambro’s home.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Maine State Police investigated this case, with assistance from the Oxford County Sheriff’s Office and Norway Police Department.
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Gardena Man Sentenced to 27 Years in Federal Prison for Armed Robbery Spree He Committed While on Parole for Armed RobberyRead the Press Release
LOS ANGELES – A convicted murderer was sentenced today to 324 months in federal prison for robbing and attempting to rob nearly a dozen Los Angeles County businesses – including a veterinarian’s office – at gunpoint during a five-day crime spree in late 2020 while on parole from state prison for armed robbery.
Justin Washington, 34, of Gardena, was sentenced by United States District Judge Percy Anderson, who also ordered him to pay $9,019 in restitution and a special assessment of $1,100.
Washington pleaded guilty in October 2023 to 10 counts of interference with commerce by robbery (Hobbs Act) and one count of brandishing a firearm during a crime of violence.
In mid-September 2020, Washington was released from state prison from a 10-year term for armed robbery and possession of a deadly weapon. Less than two months after his release, Washington murdered a rival gang member.
Then, from November 30 to December 4, 2020, Washington robbed and attempted to rob 10 businesses in the South Bay and in South Los Angeles. His robbery spree began at the same Gardena grocery store, which he robbed on consecutive days on November 30 and December 1, 2020. From there, in Gardena, Washington robbed a 7-Eleven store, a donut shop and attempted to rob a veterinarian’s office. He then robbed a donut shop in Torrance, and, in South Los Angeles, a wireless phone store, a dry cleaner business, two additional donut shops and, finally, a Baskin-Robbins ice cream store.
During his armed robbery of a Torrance donut shop on December 2, 2020, Washington pointed a gun at and then struck a store employee in the head, causing bodily injury. Washington then forced the victim to move to the shop’s back office to facilitate Washington’s search for money, then bound the victim’s hands.
While robbing a donut shop at gunpoint in South Los Angeles one day later, Washington pistol whipped an employee, causing serious bodily injury to the victim, then attempted to fire his gun.
In total, Washington stole $9,019 in cash and personal property during his five-day crime spree.
From December 2020 until July 2023, Washington was in state custody. He ultimately was convicted of first-degree murder and was sentenced to 75 years to life in prison. He has been in federal custody since July 2023. Twenty years of Washington’s 27-year federal prison sentence will run consecutive to his state prison sentence for murder.
“This defendant was a walking crime spree and fully deserving of a major federal prison sentence,” said United States Attorney Martin Estrada. “Removing violent criminals such as this defendant from our streets is some of the most important work my office handles and we will continue to vigorously prosecute individuals who endanger our community.”
“Mr. Washington's short-lived criminal rampage terrorized small businesses and undoubtedly left his victims with lasting trauma,” said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Federal law enforcement in league with our local partners will hold accountable violent predators who target hardworking business owners and employees, as well as the communities they serve.”
“Data shows the average ATF defendant has 7.8 prior arrests and 2.16 prior felony convictions,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Los Angeles Field Division Acting Special Agent in Charge Michael Hoffman. “We target career criminals by collaborating with our law enforcement partners to remove these individuals from our communities. The violent crimes they commit will not be tolerated.”
The FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Torrance Police Department; the Gardena Police Department; the Los Angeles Police Department; and the Los Angeles County Sheriff’s Department investigated this matter.
Assistant United States Attorney Sara Vargas of the Violent and Organized Crime Section prosecuted this case.
Four sentenced for drug trafficking in Eastern PanhandleRead the Press Release
MARTINSBURG, WEST VIRGINIA – Four people have been sentenced for drug trafficking crimes in the Northern District of West Virginia.
- Gary Weldon, also known as “Fatboy,” age 36, of Baltimore, Maryland, was sentenced today to 100 months for two heroin charges.
- James Davis Graham, also known as “JD Graham,” age 41, of Augusta, West Virginia, was sentenced to 18 months for selling heroin and fentanyl.
- Jeanette L. Henkel, age 32, of Augusta, West Virginia, was sentenced to 41 months for charges of selling heroin and fentanyl.
- Jonathan Ross Blankenbaker, age 32, of Inwood, West Virginia, was sentenced to five years of probation for eutylone trafficking.
According to court documents and statements made in court, Weldon, Graham, and Henkel were working with others to transport heroin and fentanyl from Baltimore to Hampshire County, West Virginia. Court documents show that in addition to the sale of drugs, firearms were trafficked and traded for drugs. The investigation yielded several firearms, ammunition, and thousands of dollars in cash.
In a separate case, Blankenbaker sold eutylone in Berkeley County and elsewhere. According to court documents and statements made in court, investigators searched a motel room in Martinsburg that was being used to sell eutylone and methamphetamine and found both drugs and more than $12,500 in cash.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, led the Weldon, Graham, and Henkel investigation. The Task Force consists of members from the Federal Bureau of Investigation, the Drug Enforcement Administration, the West Virginia State Police, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department. The Hampshire County Prosecutor’s Office assisted.
The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Martinsburg Police Department investigated the Blankenbaker matter. The Task Force consists of the FBI; the Bureau of Alcohol, Tobacco, Firearm, and Explosives; the West Virginia State Police; the Berkeley County Sheriff’s Office; the Jefferson County Sheriff’s Office; the Ranson Police Department; and the Charles Town Police Department.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the cases on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Former Iowa Businessman Sentenced to Federal Prison in Pandemic Benefits Fraud SchemeRead the Press Release
A former Iowa businessman who defrauded the federal and state governments out of over $150,000 in pandemic benefits, and who also possessed firearms and ammunition after multiple prior felony convictions, was sentenced today to five years in federal prison. Justin Eugene Dowie, age 41, from Cedar Rapids, received the prison term after pleading guilty on July 19, 2023, to one count of bank fraud, one count of money laundering, and one count of possessing ammunition as a felon.
Evidence at Dowie’s sentencing, and other hearings in the case, showed that, in 2020 and 2021, Dowie repeatedly submitted false applications to the Small Business Administration (“SBA”) in attempts to receive Paycheck Protection Program loans (“PPPs”) and Economic Injury Disaster Loans (“EIDLs”). During the pandemic, Congress authorized PPPs and EIDLs to assist businesses and individuals suffering financial impacts from the COVID-19 pandemic.
Dowie applied for approximately $1 million in PPPs and EIDLs from the SBA, and while many of his attempts were unsuccessful, he received over $100,000 from the SBA in his own name and using a stolen identity. During the same timeframe, Dowie also received over $50,000 in fraudulent unemployment insurance benefits from the State of Iowa, again using his own name and a stolen identity. Dowie also perpetrated other fraud schemes on individual victims, including stealing insurance benefits intended for a victim of the derecho—a severe windstorm that damaged numerous properties in the Cedar Rapids area in August 2020—and obtaining over $13,000 from a line of credit.
Dowie is a former businessman in the Cedar Rapids and Des Moines areas. He is also a convicted felon with sixteen prior criminal convictions, including five drunk driving convictions in state court. In late 2022 and early 2023, Dowie possessed firearms and ammunition even though he was prohibited from doing so
on account of his criminal record, which included felonies for drunk driving in 2008, conspiracy to commit a nonforcible felony in 2015, and attempted eluding in 2018. While Dowie illegally possessed the firearms and ammunition, he refused to leave another man’s home after the other man had temporarily allowed Dowie to stay in the home during a snowstorm and cold weather. The other man ultimately had to leave his own home when Dowie took it over illegally.
Dowie was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Dowie was sentenced to 60 months’ imprisonment. He was ordered to make $190,539.65 in restitution to the victims of his crimes, including the federal and state governments. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Dowie is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Federal Bureau of Investigation. The Small Business Administration, Office of Inspector General, assisted the investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 23-CR-10 and 23-CR-55.
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Former Bullitt County Master Commissioner Sentenced to 2 Years and 11 Months in Federal Prison for Defrauding VictimsRead the Press Release
Louisville, KY – The former Bullitt County Master Commissioner was sentenced today to 2 years and 11 months for defrauding two trusts originally held by senior beneficiaries.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and FBI Special Agent in Charge Michael E. Stansbury of the Louisville Field Office made the announcement.
According to court records, John Anthony Schmidt, 67, an attorney and the Former Bullitt County Master Commissioner, was sentenced to 2 years and 11 months in prison, followed by a 3-year term of supervised release, with a special condition of 100 hours of community service, for one count of wire fraud and two counts of bank fraud. There is no parole in the federal system.
The charges in this case were in connection with Schmidt’s scheme to steal over $435,000 while he was serving as the court appointed trustee for two trusts, the beneficiaries of which relied on Schmidt to manage the trusts’ assets. As part of his scheme, Schmidt stole from the trusts to pay for his own personal expenditures, including to pay debts he incurred to individuals he had represented or purported to represent in the course of his legal practice and to replace missing funds from the Bullitt County Master Commissioner bank account.
Schmidt was also ordered to pay restitution to multiple victims in the case.
The case was investigated by the FBI’s Public Corruption Task Force.
Assistant U.S. Attorney Stephanie M. Zimdahl prosecuted the case.
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Former Baton Rouge Motel Manager Pleads Guilty to Wire FraudRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Joshua Lamb, age 35, of Baton Rouge, Louisiana, pleaded guilty before U.S. District Judge Brian A. Jackson to wire fraud.
According to admissions made during his plea, in late 2022 and early 2023, Lamb was working as the general manager of Comfort Suites Medical District hotel in Baton Rouge. During that time, he operated a scheme to defraud the hotel by wiring at least $90,000 of unearned money to himself. Although Lamb initially claimed the wirings were authorized reimbursements, they were not. In the weeks before he was caught in March 2023, Lamb was routinely wiring himself thousands of dollars a week in unauthorized payments.
This matter was investigated by the U.S. Secret Service and the East Baton Rouge Parish Sheriff’s Office and is being prosecuted by Assistant United States Attorney Ben Wallace.
Former Army National Guard Recruiter sentenced to ten years in prison for sexual abuse of minorRead the Press Release
Tacoma – A former Air Force Special Agent was sentenced today in U.S. District Court in Tacoma to ten years in prison for enticement of a minor, announced Acting U.S. Attorney Tessa M. Gorman. Joshua Carl Harrod, 44, of Spanaway, Washington, was charged in July 2021 and pleaded guilty in October 2023. At the sentencing hearing, U.S. District Judge Benjamin Settle said the crimes were “sadistic” and “indescribably cruel.”
According to records filed in the case, between October 2017 and April 2018, Harrod sexually molested a young child left in his care. The conduct occurred in the location where he resided on Joint Base Lewis-McChord, an area of exclusive federal jurisdiction. Harrod separated from the Air Force in 2018 and prior to his arrest in this case, served as a recruiter for the Army National Guard in Lakewood, Washington.
Harrod also pleaded guilty to making a false statement to a government agency for his efforts to falsify phone records related to evidence in the case.
In addition to the ten-year prison term, Judge Settle ordered Harrod to be on lifetime supervised release. In handing down the sentence, Judge Settle said, “The consequences of many crimes before me do not have the impact that this one does…Victims of these crimes carry with them a life sentence.”
The case was investigated by the FBI with assistance from the U.S. Air Force Office of Special Investigations (OSI), Joint Base Lewis-McChord Military Police Investigations, the Lakewood Police Department, and the Washington State Patrol.
The case was prosecuted by Assistant United States Attorneys Kristine Foerster and Elyne Vaught.
Foreign National Sentenced for Conspiring to Launder Proceeds of Internet Fraud SchemesRead the Press Release
A Nigerian national was sentenced today to 10 years and one month in prison and ordered to pay over $1.46 million in restitution for conspiring to launder money derived from internet fraud schemes.
According to court documents and evidence presented at trial, Olugbenga Lawal, 33, of Indianapolis, Indiana, worked directly with the Nigeria-based leader of an international criminal organization that defrauded individuals and businesses across the United States out of millions of dollars through sophisticated internet-based fraud schemes, including romance fraud and business email compromise schemes. The criminal organization frequently targeted elderly victims who believed they had fallen in love with people they had met on the internet. Lawal then laundered millions of dollars of proceeds from the fraud schemes.
Between January 2019 and June 2020, bank accounts used by Lawal and his co-conspirators to launder money on behalf of the criminal organization received millions of dollars traced directly to individuals and businesses defrauded over the internet by members of the criminal organization. Accounts Lawal controlled received over $3.6 million in deposits between January 2019 and May 2020. Those deposits were spread across seven different bank accounts Lawal opened in his own name or the name of his business entity, Luxe Logistics LLC. Ultimately, Lawal controlled bank accounts at no less than five different financial institutions in furtherance of his money laundering.
Additionally, Lawal played a role in laundering money for the criminal organization by converting the fraud dollars deposited in his accounts into Nigerian currency accessible in Nigeria. He engaged in import/export transactions involving the shipment of cars to Nigeria and currency exchange business transactions to facilitate the repatriation of the organization’s fraud proceeds back to Nigeria.
On Aug. 10, 2023, Lawal was convicted by a federal jury of conspiring to commit money laundering. Three co-conspirators, Michael Hermann, Rita Assane, and Dwight Baines, previously pleaded guilty to conspiracy to commit money laundering.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney David C. Weiss for the District of Delaware, and Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division made the announcement.
The FBI investigated the case.
Trial Attorneys Mary K. Daly and Michael Grady of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Jesse S. Wenger and Meredith Ruggles for District of Delaware prosecuted the case, with assistance from MLARS Trial Attorneys Madeleine Case and Jasmin Salehi Fashami.