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8 January 2024
Five Defendants Sentenced for Drug Trafficking and Firearm OffensesRead the Press Release
Five individuals were sentenced today for drug trafficking and firearm offenses, U.S. Attorney Phillip A. Talbert announced.
Two fentanyl dealers sentenced for interstate drug trafficking
Juan Alejandro Comparan-Guzman, 28, of Kerman, was sentenced to 15 years in prison, and Rita Ann-Marie Louis, 32, of Carnation, Washington, was sentenced to four years in prison for trafficking fentanyl, methamphetamine, and heroin.
According to court documents, a nine-month investigation into a drug-trafficking organization operating in California and trafficking drugs to Colorado, Nebraska, Oregon, and Washington revealed that the two sentenced today, along with 11 others, were involved in trafficking methamphetamine, fentanyl-laced counterfeit OxyContin pills, and heroin. Approximately 7 pounds of cocaine, 2 pounds of heroin, 137 pounds of methamphetamine, and over 34,000 pills containing fentanyl were seized, as well as $142,000 in cash.
This case was the product of an investigation by the High Impact Investigation Team (HIIT), a High Intensity Drug Trafficking Area Initiative (HIDTA), composed of personnel from the FBI, the California DOJ, Homeland Security Investigations, the Fresno Police Department, the Sheriff’s Offices of Fresno, Tulare, and Kings Counties, Fresno County District Attorney’s Office, and the CHP.
Fresno man sentenced for illegally possessing a firearm in connection with selling fentanyl
Armando Chavez Jr., 22, of Fresno, was sentenced to five years in prison for possessing a firearm in furtherance of a drug trafficking crime. According to court documents, Chavez sold counterfeit oxycodone pills laced with fentanyl on Snapchat, a social media platform. After a nonfatal overdose was reported, federal law enforcement agents working in an undercover capacity contacted Chavez and ordered oxycodone pills from him. Chavez agreed to sell the pills and drove to a predetermined meeting location. Once he arrived, Chavez and his car were searched, and law enforcement found approximately 100 fentanyl pills. Agents then executed a federal search warrant at Chavez’s residence. Inside his bedroom, law enforcement found over 1,300 fentanyl pills packaged for distribution and a loaded handgun.
This case was the product of an investigation by Homeland Security Investigations, the DEA, and the Fentanyl Overdose Response Team. The case was part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Two sentenced for conspiring to distribute methamphetamine in EDCA and Oregon
Adrian Arredondo Alvarado, 34, of Orosi, was sentenced today to eight years and seven months in prison for conspiring to distribute methamphetamine and marijuana. Ivan Vasquez, 35, of Oregon, was sentenced to five years and three months in prison for conspiring to distribute methamphetamine.
According to court documents, Alvarado was the main target of a lengthy federal investigation into a drug trafficking ring. During the investigation, Alvarado was identified as a large-scale methamphetamine and marijuana distributor as well as a marijuana cultivator. Alvarado negotiated and then supplied over 5 kilograms of methamphetamine to Vasquez, who traveled from Oregon into the Eastern District of California to obtain that methamphetamine, which he intended to distribute to others in Oregon. Alvarado directed other co-defendants to go to Southern California to obtain the drugs and another to collect Vasquez’s drug payment. Alvarado was growing a substantial amount of marijuana. During a search of Alvarado’s residence, officers seized a stolen handgun, ammunition, and a half kilogram of marijuana. On the other properties that Alvarado used for marijuana cultivation, officers found over 400 marijuana plants, nine firearms, and several hundred kilograms of processed marijuana.
Co-defendant Alexis Melchor-Guzman, 30, of Orosi, was sentenced to five years in prison for possession of a firearm in furtherance of a drug trafficking crime, and co-defendant Adrian Lopez, 39, of Orange Cove, was sentenced to one year in prison for maintaining a drug-involved premises.
This case was the product of an investigation by the DEA with assistance from the Visalia Police Department and the Tulare County Sheriff’s Office.
Assistant U.S. Attorney Justin J. Gilio prosecuted these cases.
Five Companies Agree to Pay $7.2 Million to Settle Allegations of Natural Resource Damages to Watershed Areas in Toledo, OhioRead the Press Release
Five companies – Ohio Refining Co., Chevron U.S.A. Inc., Energy Transfer (R&M) LLC, Pilkington North America Inc. and Chemtrade Logistics Inc. – today agreed to settlements totaling in excess of $7.2 million to resolve claims of natural resource damages at the Duck & Otter Creeks Natural Resource Damage Assessment (NRDA) site.
A complaint filed with the settlements alleges that the five companies are liable for historic industrial discharges of oil or hazardous substances – including polycyclic aromatic hydrocarbons (PAHs), arsenic and lead – at the Duck & Otter Creeks NRDA site near Toledo, Ohio. The site is just east of the Maumee River and encompasses the creeks, adjoining wetlands, floodplain areas and uplands. Duck and Otter Creeks flow into Maumee Bay in Lake Erie.
In the aquatic environment, oil spills directly cause PAH pollution, and PAHs and metals were identified in creek sediments at different locations throughout the site and in concentrations that could cause injury including to invertebrates, fish, birds and mammals.
“These settlements will enable restoration work that will significantly improve the environment in the area of the Maumee River and nearby Lake Erie,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Addressing the harm caused by releases of toxic contaminants will benefit local communities and restore important habitat.”
“The Maumee River watershed, including Duck and Otter Creeks, provides key habitats for migratory birds and fish, and supports hunting and fishing activities for local residents,” said Midwest Regional Director Will Meeks of the U.S. Fish and Wildlife Service (USFWS). “We are excited to work with our partners in the Maumee Area of Concern Advisory Committee and the City of Toledo on restoring this incredible resource. The proposed project will provide additional benefits to the local community and this important river and coastal area.”
“For decades, these companies released toxic industrial pollutants into Ohio waterways, damaging our local wildlife and ecosystem,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Our office is proud to assist the Justice Department’s Environment and Natural Resources Division and the Department of the Interior in taking this critical step to protect our residents’ health, preserve our environment and ensure compliance with CERCLA and other environmental laws.”
A draft Restoration Plan, also being made available today by the USFWS for a 30-day public review and comment period, recommends restoration work at the Delaware and Clark Island Complex within the Maumee River. This project will improve water quality in the Maumee River and includes restoring approximately 23 acres of alluvial islands and constructing shoreline enhancements to reduce further island erosion. The project also includes the creation and restoration of island, wetland and submerged habitat for aquatic and bird wildlife as well as vegetation, including plantings of native plants.
Attorneys from ENRD’s Environmental Enforcement Section are handling the case in conjunction with the Department of the Interior and USFWS.
The proposed consent decrees were lodged in the U.S. District Court for the Northern District of Ohio. The settlements are subject to a 30-day comment period and final court approval. The consent decrees will be available for viewing on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.
Federal Drug Trafficking Complaint Follows Seizure of Thirteen Pounds of Fentanyl-Laced PillsRead the Press Release
NASHVILLE – A joint investigation by the Drug Enforcement Administration and the Metropolitan Nashville Police Department has resulted in the arrest of three individuals for conspiring to distribute over 13 pounds of fentanyl-mixed pills in Nashville, Tennessee, announced United States Attorney Henry C. Leventis.
The complaint charges Karl Chandler, Jr., 36, Jacquez McCoy, 26, and Branelle Brooks, 23, with conspiracy to possess with intent to distribute a mixture or substance containing fentanyl. Chandler is also charged with possession of a firearm by a convicted felon.
On January 4, 2024, agents intercepted a suspicious package that had been shipped to Nashville from Phoenix, Arizona. Upon searching the package, they discovered a substantial quantity of pills containing fentanyl. The pills, which bore the same color, shape, and imprints as legitimate oxycodone 30 milligram pills, were concealed in two vacuum-sealed bags hidden inside of air mattresses. In total, the package contained approximately 6.27 kilograms, or 13.8 pounds, of suspected fentanyl-laced counterfeit pills. Agents re-assembled the package without the narcotics and followed those who retrieved it upon delivery, resulting in the arrests of Chandler, McCoy and Brooks. Federal agents also recovered a firearm as part of the investigation.
Assistant U.S. Attorney Emily E. Petro is prosecuting the case.
A complaint is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Father and Son Sentenced for Laundering Drug Trafficking Bitcoin Proceeds Intended for Federal ForfeitureRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Joseph Farace, age 72, of Sparks, Maryland today to 19 months in federal prison, followed by two years of supervised release, for a money laundering conspiracy. On January 5, 2023, Judge Griggsby sentenced his son, Ryan Farace, age 38, of Reisterstown, Maryland, a previously convicted felon, to 54 months in federal prison for the same charge.
The sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief Robert McCullough of the Baltimore County Police Department; Chief Gregory Der of the Howard County Police Department; Anne Arundel County Police Chief Amal E. Awad; Carroll County Sheriff James DeWees; Washington County Sheriff Brian K. Albert; and Chief Teresa Walter of the Havre de Grace Police Department.
According to their guilty pleas and other court documents, in November 2018, Ryan Farace was convicted in U.S. District Court in Maryland for a scheme to manufacture and distribute alprazolam tablets (sold under the brand name “Xanax”) in exchange for Bitcoin through sales on darknet marketplaces. Cryptocurrency tracing techniques established that, in all, wallets associated with R. Farace, and/or his vendor name “XANAXMAN,” received over 9,138 Bitcoins from addresses associated with darknet marketplaces.
Prior to his sentencing for the 2018 crimes, R. Farace met with representatives of the United States Attorney’s Office and the Drug Enforcement Administration, for the purpose of helping the government gain access to R. Farace’s drug proceeds, particularly cryptocurrency and cash, which had not yet been seized. R. Farace repeatedly stated that he did not recall the location or means by which he could access any additional Bitcoins about which the government was not already aware. At R. Farace’s sentencing for the 2018 crimes, he argued that he had been cooperative with the government’s efforts to obtain his assets. Nonetheless, after R. Farace was sentenced, the government recovered additional drug proceeds in the form of Bitcoin. Specifically, in early 2020, law enforcement recovered over 24 Bitcoin.
As detailed in his guilty plea, despite R. Farace’s claims to the government that he could not access any other Bitcoin proceeds related to his 2018 drug trafficking conviction, from October 2019 to April 2021, while incarcerated for his 2018 crimes, R. Farace conspired with his father, J. Farace, and others to launder additional proceeds of crimes through a series of financial transactions. For example, in 2019, R. Farace sent approximately 71 Bitcoin from digital wallets he controlled to online exchanges and retailers. Financial records from one such retailer indicated that R. Farace used some of the drug proceeds to benefit his father, including sending $3,341.65 worth of gift cards. R. Farace used a contraband cell phone in prison to communicate with J. Farace about these purchases, using an encrypted email service.
In August 2020, while he was incarcerated, R. Farace asked J. Farace to transfer more than 2,874 Bitcoin to a third party, so that the funds could be moved into a foreign bank account. R. Farace provided J. Farace with the wallet address by typing it into the back cover of a prison library book and mailing it to J. Farace.
As detailed in their plea agreements, R. Farace (while incarcerated) and J. Farace used email and phone calls to discuss the transfer of bitcoin using coded language. In September 2020, J. Farace completed the transfer of over 2,874 Bitcoin to the third party, all of which were proceeds of R. Farace’s 2018 drug crimes. On February 10, 2021, federal agents seized all of the 2,874.90419597 Bitcoin that J. Farace had transferred, the market value of which was between $65 million and $150 million at the time of seizure. On May 11, 2021, the government seized 58.742155166 Bitcoin that was also proceeds of R. Farace’s drug trafficking. Both R. Farace and J. Farace must forfeit all of the Bitcoin seized during the investigation.
United States Attorney Erek L. Barron and Acting Assistant Attorney General Nicole M. Argentieri commended the DEA, the IRS-CI, the Baltimore County, Howard County, and Anne Arundel County Police Departments, the Carroll County Sheriff’s Office, the Washington County Narcotics Task Force, the Havre de Grace Police Department for their work in the investigation and thanked the United States Postal Inspection Service, Maryland Department of Public Safety and Correctional Services and the Federal Bureau of Prisons for their assistance. Mr. Barron thanked Assistant U.S. Attorney Coreen Mao and Trial Attorney Emily Cohen of the Justice Department’s Money Laundering and Asset Recovery Section, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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District of South Dakota Awarded $16.3 Million in Grant Funding from the U.S. Department of Justice in FY23Read the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that in FY23, the U.S. Department of Justice, through the Office of Justice Programs (OJP), awarded 33 grants totaling $16.3 million in funding to the State of South Dakota, various tribal and local governments, and other local entities to support public safety and community justice activities. Nationally, the Justice Department awarded more than $4.4 billion in similar grant funding.
Of the $16.3 million awarded in South Dakota, over $8 million was given to the State of South Dakota, including the Attorney General’s Office, Department of Corrections, and Department of Public Safety. Over $5.4 million was awarded to tribal governments, including the Sisseton Wahpeton Oyate, Cheyenne River Sioux Tribe, Flandreau Santee Sioux Tribe, Lower Brule Sioux Tribe, Oglala Sioux Tribe, Rosebud Sioux Tribe, and the Yankton Sioux Tribe in the form of grants from the Bureau of Justice Assistance, Office for Victims of Crime (OVC), Office of Juvenile Justice and Delinquency Prevention (OJJDP), and National Science and Mathematics Access to Retain Talent (SMART) grants. Additional grants were awarded to city and county governments, South Dakota State University, and local organizations.
“The money awarded to the State of South Dakota, tribal and local governments, and community organizations has the capacity to fund truly impactful work in the area of public safety,” said U.S. Attorney Alison J. Ramsdell. “We look forward to collaborating with these entities to grow the impact of their grant funding and improve the quality of life in communities throughout our state.”
The more than 3,700 OJP grants awarded in FY23 will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
Grants will support five major community safety and justice priorities:
- Awards totaling more than $1 billion will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success, and address the rise in hate crimes across the country.
- More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion, and build pathways to treatment for people with substance use and mental health disorders.
- Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse.
- More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization.
- Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims.
In addition, OJP awarded more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards can be found by visiting www.ojp.gov/funding/fy23awards.
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The Office of Justice Programs is the largest grantmaking component of the Department of Justice and houses the Department’s criminal and juvenile justice-related science, statistics, and programmatic agencies. OJP provides federal leadership, funding, training and technical assistance, research and statistics, and other critical resources to advance work that strengthens community safety, promotes civil rights and racial equity, increases access to justice, supports crime victims and individuals impacted by the justice system, and builds trust between law enforcement and communities.
District Sex Offender Pleads to Sexual Exploitation of a ChildRead the Press Release
WASHINGTON – Michael Humphrey, 41, a registered sex offender from Southeast Washington, D.C., pleaded guilty today to uploading to the internet graphic videos of himself sexually abusing a five-year-old girl.
The plea agreement was announced by U.S. Attorney Matthew Graves, Acting Special Agent in Charge David Geist of the FBI Washington Field Office’s Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Humphrey pleaded guilty to a charge of sexual exploitation of a child. He faces a mandatory minimum sentence of at least 15 years of imprisonment, a fine of $250,000, and supervised release of at least five years. Humphrey previously was convicted on a charge relating to the sexual abuse of a child. On March 10, 2020, he was convicted of third-degree sex offense in the Circuit Court of Montgomery County, Maryland. Since May 2022, Humphrey has been registered as a sex offender in the District of Columbia as required by law.
According to the government’s evidence, in July 2023, Google LLC reported to the National Center for Missing and Exploited Children (NCMEC) that two Google accounts, later identified as Humphrey’s, had uploaded material depicting child sexual abuse to Google servers. NCMEC turned that information over to the investigators from the FBI Washington Field Office and the MPD.
Investigators obtained a warrant authorizing the search of Humphrey’s Google accounts and discovered three videos that show Humphrey sexually abusing a five-year-old girl in Washington, D.C. during June 2023.
Humphrey was arrested on August 11, 2023, and has been held since. After he was taken into custody, investigators obtained Humphrey’s electronic devices and discovered thousands of images and hundreds of videos depicting the sexual abuse of children.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, detectives from the Metropolitan Police Department, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. It is being prosecuted by Assistant U.S. Attorneys Rachel Forman and Amy Larson, of the U.S. Attorney’s Office for the District of Columbia.
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District Man Sentenced to 8 Months in Prison for Illegally Recording and Publishing Grand Jury ProceedingsRead the Press Release
WASHINGTON – Alexander Hamilton, 29, of Washington, D.C., was sentenced today to eight months in prison for illegally recording and publishing secret grand jury proceedings while he served on the Grand Jury in the District of Columbia, announced U.S. Attorney Matthew M. Graves.
In addition to the prison term, U.S. District Court Judge Christopher Cooper ordered Hamilton to serve 12 months of probation following his release.
Hamilton pleaded guilty on August 29, 2023, to contempt and obstruction of justice under federal and District of Columbia law.
Hamilton, a former special police officer who worked as an armed guard at the Smithsonian’s National Air and Space Museum, was sworn in as a grand juror in D.C. Superior Court on September 9, 2022. His grand jury service ended on October 13, 2022, after an MPD officer monitoring public Instagram accounts saw an account called “moefromthezzz,” posting video from the Grand Jury room.
Hamilton, whose account had nearly 10,400 followers, posted videos of at least 14 different grand jury investigations and at least 18 different witnesses within the Superior Court of the District of Columbia Grand Jury room. He indicated he knew what he was doing was illegal, boasting that his actions could land him in prison for three years.
When he was sworn in, Hamilton had been instructed to keep the proceedings secret from family, friends, or any other members of the public. Hamilton took an oath stating that he would keep the proceedings secret. However, as Hamilton raised one hand to take the oath, he filmed himself—using his cell phone in the other hand —and stated, “I’m about to lie.” Hamilton then sent that video to various people via text message. While the swearing in took place at Superior Court, the grand jury sits in a suite at the U.S. Attorney’s Office. Hamilton was both verbally instructed and given written materials explaining that cell phones were not permitted in the grand jury room.
Despite these warnings, Hamilton posted portions of grand jury testimony on Instagram Stories and broadcasted significant periods of testimony on Instagram Live. Hamilton often overlaid his Instagram stories with rat emojis and terms such as “hot” or “snitches.” He continuously showed contempt and disdain for any individual who would testify before a grand jury.
On multiple occasions, Hamilton filmed portions of testimony where the witness stated their name—revealing the identity of the witness to his followers.
At different times in the videos, he zoomed in on evidence that was presented on the screen. During the broadcast, Hamilton had a conversation with followers where he said the witness was the one who should be considered “guilty.”
On October 11, 2022, Hamilton sent messages stating, “They can lock you up for this . . . Having your phone back here.” On at least three occasions, Hamilton referenced receiving three years in prison for bringing his phone into the grand jury room and recording testimony.
The MPD discovered the Instagram videos. Personnel from the U.S. Attorney’s office recognized the individual as Hamilton. During a consensual interview with law enforcement, Hamilton admitted to recording grand jury proceedings and posting them to his Instagram account. Hamilton indicated that he filmed the proceedings using one of two phones that he owns. Hamilton also sent dozens of messages via text message and Instagram discussing his grand jury service.
Hamilton was arrested on November 17, 2022.
In announcing the sentencing, U.S. Attorney Graves commended the work of those who investigated the case from the U.S. Attorney’s Office’s Criminal Intelligence and Investigation Unit (CIIU).
The case was prosecuted by Assistant U.S. Attorney Josh Gold. Valuable assistance was provided by former U.S. Attorney CIIU Special Agent Geoff Guska, U.S. Attorney CIIU Special Agent Sean Ricardi and CIIU Supervisory Special Agent Tina Lukens. Notable assistance was provided by Investigative Analyst Chris Fagioli and Special Agent Durand Odom of the CIIU.
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Concord Man Sentenced for Possessing Methamphetamine and FentanylRead the Press Release
CONCORD – A Concord man was sentenced today in federal court for possessing with intent to distribute controlled substances, First Assistant U.S. Attorney Jay McCormack announces.
Ethan Lea, 33, was sentenced by U.S. District Court Chief Judge Landya B. McCafferty to 72 months in prison and 3 years of supervised release. On April 14, 2022, Lea pleaded guilty to two counts of possessing with intent to distribute methamphetamine, and one count of possessing with intent to distribute fentanyl.
“Law enforcement will hold those that poison our communities with dangerous narcotics accountable,” First Assistant U.S. Attorney Jay McCormack said. “The U.S. Attorney’s Office is committed to working with our local, state, and federal partners to reduce the supply of fentanyl and methamphetamine in New Hampshire by incarcerating prolific drug dealers.”
“Today’s sentence is a win for the FBI, our law enforcement partners, and the people of New Hampshire as we work together to remove dangerous drugs and criminals off the street,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division.
After a motor vehicle stop on June 13, 2021, law enforcement seized approximately 245 grams of methamphetamine and 71 grams of fentanyl from Lea’s car. On July 30, 2021, Lea was caught again with large quantities of drugs and evidence of drug dealing in his car, including 448 grams of methamphetamine, digital scales, and over $2,000 in cash. He later admitted to law enforcement that the drugs recovered from the car stops belonged to him, and that he intended to distribute them.
The Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorney Aaron Gingrande prosecuted the case.
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Central Valley Corporate Insider Pleads Guilty to Stealing Nearly $5 Million in Livestock Feed IngredientsRead the Press Release
FRESNO, Calif. — Shawn Sawa, 47, formerly of Clovis, pleaded guilty today to conspiracy to commit wire fraud for his role in stealing millions of dollars’ worth of canola from international food processors. Canola is commonly used to make livestock feed.
According to court documents, from 2015 through 2017, Sawa and Richard Best stole $4.8 million worth of canola from the food processors. They then sold the canola for a windfall. Sawa and Best carried out the scheme through Best’s now defunct train-to-truck transloading company, Richard Best Transfer Inc. (RBT). A transloading company transfers commodities from one mode of transportation to another mode. The victim food processors sent hundreds of thousands of tons of their canola to RBT for delivery to their customers. Sawa was the manager of a victim food processor’s branch office in Fresno and had a close relationship with Best.
Sawa and Best sold the stolen canola through an acquaintance in Texas who used to work in the livestock-feed industry. The acquaintance sold the stolen canola to farms and dairies and distributed the proceeds according to Best’s instructions. This included wire transfers to Sawa, RBT, and Best’s bank accounts. The account that Sawa used was opened in his spouse’s name to try to conceal the scheme.
Throughout the scheme, Sawa and Best caused RBT to email fraudulent inventory reports to the victim food processors representing that RBT had certain amounts of their canola in-stock when, in fact, RBT had significantly lesser amounts. Sawa and Best used the proceeds from the scheme to purchase luxury homes and multiple vehicles, take trips, hire private karate teachers, and cover RBT’s operating expenses, among other expenses.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Sawa is scheduled to be sentenced on Monday, Aug. 11, 2025, by U.S. District Judge Jennifer L. Thurston. Sawa 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.
Best was also charged with conspiracy to commit wire fraud and wire fraud. The charges against him are pending and are only allegations. He is presumed innocent until and unless he is proven guilty beyond a reasonable doubt.
California Man Sentenced to Four Years in Prison for Submitting False Sexual Assault Declarations to Court in $100 Million LawsuitRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ROVIER CARRINGTON was sentenced today by U.S. District Judge Valerie E. Caproni to four years in prison for submitting false declarations to the Court in connection with a civil lawsuit. CARRINGTON previously pled guilty to making a false declaration before a court.
U.S. Attorney Damian Williams said: “Rovier Carrington submitted fake evidence and lied in an effort to win a $100 million sexual assault lawsuit. Carrington now faces prison time for his brazen attempt to manipulate the court system.”
According to the Indictment and statements made in court proceedings and filings:
CARRINGTON filed a civil lawsuit (the “Civil Case”) in which he accused Hollywood executives of sexually assaulting and defrauding him. CARRINGTON sought $100 million in damages in the Civil Case. To support his allegations, CARRINGTON submitted several falsified email chains that purported to show that he had been sexually assaulted and defrauded.
When confronted about those fake emails, CARRINGTON submitted a false affidavit to the Court in the Civil Case, swearing that the emails were real. To cover up his lie, CARRINGTON deleted two of the email accounts, returned the phone he had used to send the emails to Apple, and failed to appear for the Court’s questioning about the emails.
The Court in the Civil Case ultimately dismissed the Civil Case and imposed sanctions on CARRINGTON, ruling, “these emails were fabricated, and that was bad enough, but the deactivation of the accounts, the efforts undertaken to really foreclose what is necessary discovery in this case, and the stream of lies to me, necessitate the sanctions that I am imposing.”
After the Court in the Civil Case imposed those sanctions, CARRINGTON attempted to pursue his claims in another court, violated an injunction issued by the Court in the Civil Case, and accused the Court in the Civil Case of taking bribes.
Then, even after pleading guilty in this case, CARRINGTON filed a lawsuit seeking over $1 billion and making similar allegations.
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In addition to the prison term, CARRINGTON, 34, of Los Angeles, California, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Kevin Mead and Thomas S. Burnett are in charge of the prosecution.
Boyd County Man Sentenced to 30 Years for Production of Child PornographyRead the Press Release
ASHLAND, Ky. – An Ashland man, Jonathan Michael Whitt, 35, was sentenced on Monday, to 30 years in prison, by U.S. District Judge David Bunning, for production of child pornography.
According to his plea agreement, on May 8, 2022, law enforcement discovered sexually explicit photos of Whitt and a minor victim. Subsequent investigation revealed that Whitt and the minor had a sexual relationship, from 2011 to 2013, and that Whitt had taken sexually explicit images of the victim during that time. During a separate investigation, law enforcement also discovered that Whitt was trading child sexual abuse material with others, by joining online groups and sending and receiving links to hundreds of images and videos of child pornography.
Under federal law, Whitt must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 20 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); Phillip J. Burnett, Commissioner of the Kentucky State Police (KSP); and Chief Todd Kelley, Ashland Police Department, jointly announced the sentence.
The investigation was conducted by FBI, HSI, KSP, and Ashland Police Department. Assistant U.S. Attorney Erin Roth is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Boston Man Sentenced for Witness IntimidationRead the Press Release
BOSTON – A Boston man was sentenced on Jan. 5, 2024 for attempting to prevent a victim from testifying against him in a federal proceeding. Defendant was on federal supervised release for sex trafficking when he exposed himself to the victim.
Mark Pinnock, 32, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 33 months followed by three years supervised release. In October 2023, Pinnock pleaded guilty to one count of witness intimidation.
In 2014, Pinnock was sentenced to eight years in prison for a sex trafficking offense. In July 2022, after his release from prison, Pinnock was working as an Amazon driver while under federal supervision. A victim reported to law enforcement that Pinnock exposed his penis to her while delivering a package to the condominium complex where the victim worked as a custodian. As a result, the U.S. Probation Office sought to revoke Pinnock’s term of supervised release and the Court scheduled a hearing to adjudicate Pinnock’s alleged offense.
One week before the hearing, Pinnock directed a co-conspirator to go to the condominium complex on his behalf at a time when he knew that the victim would be working. The co-conspirator falsely claimed that he worked for the state and told the victim not to go to Court while standing with his hand in his pocket in a threatening manner as if he had something in it. Pinnock also used an encrypted messaging application to send an anonymous message to the security officer at the complex to “let the cleaning lady know” she would be arrested by immigration officials if she were to go to court. Finally, Pinnock placed three separate phone calls to immigration officials in an attempt to have the victim detained for being unlawfully present in the United States. In the calls to immigration officials, Pinnock falsely claimed that he had heard the victim was gang-affiliated, among other things.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England made the announcement today. The Brockton Police provided valuable assistance in the investigation. Assistant U.S. Attorney Mackenzie A. Queenin of the Criminal Division prosecuted the case.
Bogalusa Man Sentenced to 229 Months for Involvement in Mass Shooting and Drug TraffickingRead the Press Release
NEW ORLEANS, LOUISIANA – VINCERT PETERS, age 33, a resident of Bogalusa, Louisiana, was sentenced on January 3, 2024 to a total of 229 months in prison for federal firearm and drug violations.
On September 13, 2023, VINCERT PETERS pled guilty before U.S. District Judge Sarah S. Vance to Counts 1, 3, 5, 8, and 9 of an indictment pending against him. Count 1charged him with being a felon in possession of a firearm, for his participation in a May 16, 2020 mass shooting in Bogalusa. He also pled guilty to drug distribution charges and another firearm charge stemming from an investigation by the Bogalusa Police Department and the Washington Parish Sheriff’s Office. Specifically, in Counts 3, 5, and 8, he was charged with distribution of heroin and fentanyl and possession with intent to distribute heroin and fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). In Count 9, he was charged with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c).
According to court documents, on May 16, 2020, an “Unauthorized Assembly” during Phase I of the COVID-19 Pandemic Re-Opening occurred. This assembly consisted of several hundred people, attending a “Celebration of Life,” event to honor a recent murder victim. During the celebration, a shootout took place between two groups. In total, thirteen (13) people were shot and four (4) sustained serious injuries. Ten separate firearms were discharged during this shootout. VINCENT PETERS admitted possessing and firing a gun during this incident.
During a follow-up investigation, agents also learned that PETERS was selling illegal drugs and were able to make several controlled drug purchases from him. A subsequent search of PETERS’s residence uncovered additional drugs and a firearm.
As a result of his crimes, PETERS was sentenced to serve 120 months as to Count 1 (Felon in Possession of a Firearm); 169 months as to Counts 3, 5, and 8 (Distribution of Drugs); and 60 consecutive months as to Count 9 (possession of a firearm in furtherance of a drug trafficking crime). He was also placed on supervised release for three years and ordered to pay a mandatory special assessment fee of $500.00.
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 Alcohol, Tobacco, Firearms, and Explosives, the Bogalusa Police Department, and the Washington Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney Maurice E. Landrieu, Jr. of the Narcotics Unit.
Armed Drug Trafficker Receives 120 Month Sentence After a Traffic Stop in Wilmington Results in the Seizure of Fentanyl, Crack Cocaine, and a FirearmRead the Press Release
WILMINGTON, N.C. – A Lumberton man was sentenced today to 120 months in federal prison for possession of a firearm by a convicted felon and possession of a firearm in the furtherance of a drug trafficking offense. On September 26, 2023, Elhodge Malik Kirby, age 48, pled guilty to the charges.
According to court documents and other information presented in court, on August 17, 2021, officers with the Wilmington Police Department and New Hanover County Sheriff’s Office Mobile Field Force conducted a traffic stop on a vehicle in which Mr. Kirby was the front seat passenger. A narcotics K9 responded to the scene and detected the odor of narcotics coming from the vehicle and officers conducted a search. In a plastic bag on the front passenger’s floorboard, officers located approximately 24 grams of a heroin and fentanyl mixture, approximately 11 grams of crack cocaine, a digital scale with white powdery residue, and a Narcan box containing 157 empty and unused wax bindles used to package narcotics. Under the front passenger’s seat, officers located a .22 caliber pistol. Subsequent laboratory testing revealed the presence of Kirby’s DNA on the pistol.
The investigation revealed that Mr. Kirby came to Wilmington from Lumberton to distribute narcotics due to the high demand. The investigation also revealed that between July 2021 and August of 2021, Mr. Kirby was responsible for the possession and/or distribution of over 450 grams of crack cocaine, 24 grams of fentanyl, and possessing two firearms in connection with his drug trafficking activities.
Mr. Kirby has a substantial criminal history dating back to 1992. His prior convictions include, but are not limited to, Possession with Intent to Sell or Deliver Cocaine, Assault on a Government Official, Felony Breaking or Entering, Robbery with a Dangerous Weapon, and Possession of a Firearm by a Convicted Felon.
Michael F. Easley, Jr. U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The FBI’s Coastal Carolina Task Force, The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Mobile Field Force Task Force, New Hanover County Sheriff’s Office, the Wilmington Police Department’s Gun Crime Task Force, and the Wilmington Police Department investigated the case and Special Assistant United States Attorney William Van Trigt prosecuted the case. Mr. Van Trigt is a prosecutor with the New Hanover County District Attorney’s Office. District Attorney Ben David has assigned him to the United States Attorney’s Office to prosecute federal violent crimes and other criminal matters. This has been made possible by a grant funded by New Hanover County.
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. 7:23-cr-00013BO-001.
Appleton Woman Charged with Producing & Distributing Child Sexual Abuse MaterialRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on January 4, 2024, a federal criminal complaint was issued alleging that Charlotta A. Belgum (age: 38) of Appleton, Wisconsin, produced and distributed child sexual abuse material (“CSAM”) in violation of Title 18, United States Code, Section 2251(b).
According to the criminal complaint, between approximately December 2021 and June 2022, Belgum produced CSAM of a minor child which she then shared with a male acquaintance in Texas via the internet. The complaint further alleges that Belgum frequently engaged in online conversations on a “fetish” website centered around the sexual abuse of children. Belgum faces a mandatory 15 years’ imprisonment and up to 30 years’ imprisonment if convicted of the production charge. She also could be fined up to $250,000.
This case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation, and the Appleton Police Department, with the assistance of the Department of Homeland Security, San Antonio Field Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
A criminal complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove her guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Alden Man Who Illegally Possessed a Firearm Sentenced to 71 Months in Federal PrisonRead the Press Release
Seth Peterson, 30, from Alden, Iowa, was sentenced on January 5, 2024, in federal court in Sioux City, to 71 months’ imprisonment. Peterson pled guilty on August 4, 2023, to being a prohibited person in possession of a firearm. Peterson was previously convicted of Aggravated Assault with a Dangerous Weapon, Aggravated Domestic Abuse Assault with the Intent or Display a Weapon, and Extortion.
At the hearings, evidence showed that an investigation into Peterson for vandalism led to search warrants for his social media, and ultimately his residence. At his residence, law enforcement found a loaded Taurus 9mm handgun with an obliterated serial number and drug paraphernalia. Peterson admitted to knowingly possessing the firearm, being a felon at the time he possessed the firearm, and being a user of methamphetamine and marijuana, all of which prohibit him from possessing a firearm.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Peterson was sentenced to 71 months’ imprisonment and must serve a term of supervised release of three years following the imprisonment. There is no parole in the federal system. Peterson remains in custody of the United States Marshal 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 Patrick T. Greenwood and was investigated by Iowa Division of Narcotics Enforcement, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Franklin County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3007. Follow us on Twitter @USAO_NDIA.
24 Defendants, including a Utah Business Owner, Accused of Running a Drug and Money Laundering Operation from Utah to Mexico and HondurasRead the Press Release
SALT LAKE CITY, Utah – Today, a federal magistrate judge ordered the last of 23 individual defendants in a large scale drug trafficking and money laundering case detained. The total of defendants now in custody is 22 out of 23 individuals who were charged in a superseding indictment with 33 federal crimes, including laundering millions of dollars via wire transfers from Utah to Mexico and Honduras. A financial intuition is also charged in the indictment.
According to court documents, Georgina Espinoza-Grajeda, 40, of Eagle Mountain, Utah, who is the owner and operator of Multiservicios Lokos LLC, located in South Salt Lake City, Utah, along with her employee Jesid Dadiana De Sutter, 50, of Sandy, Utah, were at the center of a complex conspiracy to secretly and illegally wire millions of dollars in proceeds of narcotics trafficking to suppliers in Mexico and Honduras. Espinoza and De Sutter laundered the money by falsifying wire transfer information to avoid detection. Multiservicios Lokos LLC was allegedly the laundering hub for multiple drug trafficking organizations. Court documents allege that from at least January 2022 to November 2023, Espinoza-Grajeda and De Sutter operated their money remitting business and laundered millions of dollars in drug proceeds deposited by their co-defendants trafficking in fentanyl, heroin, and cocaine throughout the Wasatch Front. Through a collaborative law enforcement effort, agents and officers seized 62,000 fentanyl pills, 24.5 pounds of heroin, 8.5 pounds of cocaine, five firearms, and $237,000 in cash. Agents and officers estimate the criminal organization laundered more than $20 million since January 2022.
Espinoza-Grajeda and De Sutter are charged with conspiracy to launder money, conspiracy to structure transactions to evade reporting requirements, conspiracy to evade suspicious activity reporting and anti-money laundering requirements. Their initial court appearance on the indictment, along with many of their co-defendants, was in November 2023, where the court ordered all except one defendant to remain in custody pending trial. A superseding indictment was filed on Dec. 6, 2023.
Two more defendants, Henrry Arita Lozano and Frances Dalyana Power-Escobar were arrested in Washington and brought to Utah. Lozano appeared at his arraignment January 5, 2024, and Power-Escobar appeared at her arraignment January 8, 2024. Lozano and Power-Escobar were both ordered to remain in custody. A jury trial is scheduled for April 16, 2024.
United States Attorney Trina A. Higgins, of the District of Utah, and law enforcement partners made the announcement.
The case is being investigated jointly by the Drug Enforcement Administration (DEA), FBI Salt Lake City Field Office, FBI Special Operations Group (FBI- SOG), IRS-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI), U.S. Immigration and Customs Enforcement and Removal Operations (ICE-ERO), United States Marshals Service, Adult Parole and Probation, Park City Police Department, Davis County Metro Narcotics Strike Force, Utah County Major Crimes Task Force, American Fork Police Department, Salt Lake City Police Department, Sandy Police Department, South Jordan Police Department, South Salt Lake Police Department, South Salt Lake Business License Department, West Jordan Police Department, West Valley Police Department, Unified Police Department of Greater Salt Lake, and the Utah State Bureau of Investigations (SBI).
Special Assistant United States Attorney Ryan N. Holtan, of the District of Utah is prosecuting the case.
Remaining defendants named in the indictment: (Name, age, citizenship, last city of residence)
Guadalupe Aracely Vargas Ruelas 24, Mexico, West Valley City, UT Multiservicios Lokos LLC South Salt Lake City, UT Rodrigo Andres Droguett-Almendra 26, Chile, Orem, UT Erik Rojas-Moreno 18, Mexico, SLC, UT Fredis Omar Archaga-Ponce 41, Honduras, Sandy, UT Santos Reynerio Lemuz-Ortega 37, Honduras, Sandy, UT Ever Nohe Murillo-Raudales 34, Mexico, Cottonwood Heights, UT Jose Nixon Escoto-Ortez 44, Honduras, West Jordan, UT Vicente Ortez-Zuniga 42, Honduras, West Jordan, UT Wilmer Arnoldo Romero-Soto 45, Honduras, West Valley, UT Rigo Adolfo Melendez-Martinez 43, Honduras, West Valley, UT Cristian Antonio Valle-Acosta 22, Honduras, West Valley, UT Yahir Acosta-Melendez 20, Honduras, West Valley City, UT Isaac Antonio Arteaga-Acosta 39, Honduras, Midvale, UT Edilberto Melendez-Ponce 37, Honduras, SLC, UT Henry Arita-Lozano 34, Honduras, Midvale, UT Frances, Dalyana Power-Escobar 31, Honduras, Midvale, UT Kevin Ariel Ruiz-Aguilar 34, Honduras, Riverton, UT Milton Ivan Acosta Hernandez 37, Honduras, Sandy, UT Miguel Fierro 48, Mexico, West Jordan, UT Sandy Contreras Espinoza 32, Honduras, West Jordan, UT Cristian Escobar-Gomez 27, Mexico, West Valley, UT
The case was investigated under the Organized Crime Drug Enforcement Task Force (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.An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
5 January 2024
Zuni Man Pleads Guilty to Sexual Contact of a MinorRead 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 FBI Albuquerque Field Office, announced today that Phillip Edward Lahi, Sr. pleaded guilty to abusive sexual contact in Indian Country. Lahi Sr., 72, of Zuni, New Mexico, and an enrolled member of the Pueblo of Zuni, will remain in custody pending sentencing, which has not been scheduled.
According to his plea, sometime between Nov. 1, 2021, and December 1, 2021, Lahi Sr. engaged in abusive sexual contact with a minor while hugging her. The victim, identified as Jane Doe, who is also a member of Zuni Pueblo, was less than twelve years old at the time. By the terms of the plea agreement, Lahi faces up to 8 years in prison and must register as a sex offender.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Brittany DuChaussee is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
View the Indictment View the Plea Agreement# # #
24-10
Youngsville Man Charged with Possession of Materials Involving Sexual Exploitation of MinorsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced the indictment of COY DAVID MILLER (“MILLER”), age 48, of Youngsville, La. on for the Possession of Materials Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2). The Government unsealed MILLER’s indictment on January 3, 2024. If convicted, MILLER faces up to twenty (20) years imprisonment, and/or up to a fine of $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571. In addition, MILLER faces a term of supervised release of no less than five (5) years and up to life, after his release from prison. He also faces payment of a $100 mandatory special assessment fee.
According to the indictment, beginning at an unknown time and until October 17, 2023, MILLER was found in possession of images and videos of pre-pubescent child pornography. On Wednesday, January 3, 2024, MILLER was arrested at his home in Youngsville by Special Agents with the U.S. Department of Homeland Security, Homeland Security Investigations.
U.S. Attorney Evans reiterated that the indictment is merely a charge and the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the U.S. Department of Homeland Security, Homeland Security Investigations, and the U.S. Customs and Border Protection. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Woodville Woman Ordered to Repay $103,596.91 after Committing Yearslong Fraud to Obtain BenefitsRead the Press Release
BANGOR, Maine: A Woodville woman was sentenced in U.S. District Court in Bangor for Social Security fraud, health care fraud, and theft of public money.
U.S. District Judge Lance E. Walker ordered Rella Austin-Kimball, 51, to pay $103,596.91 in restitution, consisting of $78,858.25 to the Social Security Administration (SSA), and $4,550.66 for the MaineCare program and $20,188 for the Supplemental Nutrition Assistance Program (SNAP) administered by the Maine Department of Health & Human Services (ME/DHHS). Austin-Kimball was also sentenced to serve three years of probation. She pleaded guilty on May 26, 2023.
According to court records, from about January 2005 through March 2021, Austin-Kimball lied to the SSA about her husband’s presence in her household and failed to report her receipt of alimony payments following divorce to fraudulently appear eligible for Supplemental Security Income (SSI) payments. Austin-Kimball also concealed her husband’s presence from ME/DHHS from about January 2005 to July 2017, during which time she received MaineCare and Supplemental Nutrition Assistance Program (SNAP) benefits. By lying about her husband’s presence, Austin-Kimball was also able to fraudulently receive SSI, MaineCare, and SNAP benefits for a then-minor child.
In multiple benefit eligibility reviews, Austin-Kimball falsely represented to the SSA and ME/DHHS that she and her husband had separated in January 2005 and had lived separately since that time. Following her divorce, she failed to disclose her receipt of alimony payments during eligibility reviews. She failed to disclose these events despite knowing that she was required to and that they would affect her eligibility to receive benefits for herself and on behalf of her child.
SSA’s Office of the Inspector General and ME/DHHS’s Fraud Investigation and Recovery Unit investigated the case.
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Wilkinsburg Man Sentenced to Eight Years in Prison on Drug Trafficking ConvictionRead the Press Release
PITTSBURGH - A resident of Wilkinsburg, Pennsylvania, has been sentenced in federal court to eight years in prison on his conviction of narcotics trafficking, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Howard Palmer, age 35, of Wilkinsburg, PA.
According to information presented to the court, on February 9, 2023, federal search warrants were executed on two apartments on Princeton Boulevard in Wilkinsburg, PA. During the execution of those warrants, two kilograms of cocaine, two firearms, quantities of fentanyl and other drugs, drug packaging material, and other items were recovered from the two apartments. Palmer admitted that the firearms and narcotics belonged to him.
Prior to imposing sentence, Judge Conti indicated that the sentence was appropriate taking into consideration the large quantity of drugs possessed by the defendant as well as the presence of firearms and ammunition.
Assistant United States Attorney Douglas C. Maloney prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Palmer.
Wildwood Man Arrested for Possession of A Firearm by A Convicted FelonRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces the arrest of James Wendell Jackson (31, Wildwood) on an indictment charging him with possession of a firearm affecting commerce by a convicted felon. If convicted, Jackson faces up to 15 years in federal prison. A federal grand jury indicted Jackson on November 28, 2023.
According to the court records, Jackson has been convicted of seven felonies, including selling cocaine within 1000 feet of a daycare. On January 12, 2023, law enforcement executed a federal search warrant on a Hernando County residence and found a loaded American Tactical Imports firearm locked in a safe. A subsequent forensic analysis revealed Jackson’s palmprint on the firearm. As a convicted felon, Jackson is prohibited from possessing firearms and ammunition under federal law.
A federal indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Hernando County Sheriff’s Office, and the Wildwood Police Department. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
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.
Two Washington State Men Caught Selling 80 Pounds of Methamphetamine Face Federal ChargesRead the Press Release
PORTLAND, Ore.—Two suspected drug traffickers from Vancouver, Washington are facing federal charges today after they were caught selling nearly 80 pounds of methamphetamine in a single negotiated transaction.
Luis Arnulfo Urioste Bracamontes, 26, and Rafael Avina Torres, 37, have been charged by criminal complaint with conspiring to possess with intent to distribute and possessing with intent to distribute methamphetamine.
According to court documents, in December 2023, special agents from Homeland Security Investigations (HSI) obtained information that Urioste, through his Portland area drug trafficking organization, was involved in and capable of selling large quantities of methamphetamine throughout the region. Soon after, at the direction of HSI and the Westside Interagency Narcotics team (WIN), a purchase of 80 pounds of methamphetamine for $104,000 was arranged with Urioste.
On the evening of January 4, 2023, after observing the negotiated sale taking place in a restaurant parking lot, investigators arrested Urioste and his associate, Avina, without incident. Investigators located and seized two cardboard boxes containing nearly 80 pounds of packaged methamphetamine from Urioste and Avina’s vehicle. Later the same evening, a state search warrant was executed on a Vancouver house Urioste and Avina were seen at prior to their arrest. Investigators located and seized several additional pounds of methamphetamine, scales, and a rifle from a bedroom where Avina was believed to reside.
Urioste and Avina made their first appearances in federal court today before U.S. Magistrate Judge Jeffrey Armistead and were ordered detained pending further court proceedings.
This case was investigated by HSI and WIN with assistance from the Clark County, Washington Sheriff’s Office. It is being prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
WIN is a Washington County, Oregon-based interagency drug interdiction task force that includes members from the Washington County Sheriff’s Office, Beaverton and Hillsboro Police Departments, Oregon National Guard Counter Drug Program, FBI, U.S. Drug Enforcement Administration (DEA), and HSI.
A criminal complaint is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Two New Jersey Men Sentenced to Prison for Roles in Multimillion-Dollar Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – Two New Jersey brothers have been sentenced to prison for their roles in a scheme to defraud public and private health benefits programs, U.S. Attorney Philip R. Sellinger announced today.
John Cuffari, 61, of Cedar Grove, New Jersey, was sentenced to 17 months in prison for his role in defrauding benefits programs of at least $5.3 million for the billing of medically unnecessary compounded prescriptions. He previously pleaded guilty to an information charging him with conspiracy to commit health care fraud. U.S. District Judge Renee Bumb imposed the sentence on Jan. 4, 2023, in Camden federal court.
Christopher Cuffari, 57, of Little Falls, New Jersey, was sentenced to 27 months in prison for his role in defrauding benefits programs of $7.89 million for the billing of medically unnecessary compounded prescriptions. He previously pleaded guilty to an information charging him with conspiracy to commit health care fraud. U.S. District Judge Peter Sheridan imposed the sentence on Jan. 3, 2024, in Trenton federal court.
U.S. Attorney Philip R. Sellinger“By their own admission, these defendants bilked publicly and privately funded insurance plans of millions of dollars in fraudulent reimbursements for compounded medications. Working with our partners, we will prosecute those who take advantage of our health care system to generate illicit income.”
“This investigation is only one example of how the belief that these cases have no victims is not true,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Fraud creates tougher regulations and policies from government agencies and insurance companies to prevent it from taking place. That trickles down to patients who have a much harder time getting the healthcare they may desperately need. The Cuffari brothers are just a small cog in a tremendously frustrating wheel of criminals, but we won't be deterred from bringing every one of them to justice.”
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription.
Between November 2014 and July 2016, John Cuffari participated in a conspiracy that involved the submission of fraudulent prescriptions for compounded medications to public and private insurance plans. Christopher Cuffari participated in the conspiracy between November 2014 and September 2017. The scheme centered on the discovery that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates.
John and Christopher Cuffari worked as sales representatives for several marketing companies and compounding pharmacies and targeted individuals who had insurance plans that covered compounded medications. They then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. In order to obtain prescriptions for compounded medications for some of the recruited individuals, the defendants caused payments to be made to a New Jersey-based physician.
In addition to the prison terms, both defendants were sentenced to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencings.
The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.
Two Minnesota-Based Executives Plead Guilty to Orchestrating Multimillion Dollar Accounts Receivable Factoring SchemeRead the Press Release
ST PAUL, Minn. – Two medical services company executives have pleaded guilty to orchestrating an accounts receivable factoring fraud scheme, announced U.S. Attorney Andrew M. Luger.
According to court documents, Khemwattie Singh, 53, was the chief executive officer of Global Medical Services, a Minnesota-based healthcare solutions company. Neeraj Chepuri, 55, was the chief medical officer of Global Medical Services. Between June and October 2018, Singh, Chepuri, and others entered into factoring contracts with MD Capital Solutions, a Florida-based investment company, to purchase the accounts receivable of Global Medical Services and Minnesota International Medicine for more than $2.6 million. Factoring is a form of short-term financing in which a business sells its accounts receivable to a third-party at a discount.
According to court documents and their admissions in court, Singh and Chepuri defrauded MD Capital Solutions by failing to pay over the receivables as they were collected and falsely represented to MD Capital Solutions that no funds had been received. Instead, Singh and Chepuri pocketed the money, wiring more than $5 million overseas.
In addition, Singh was responsible for complying with all federal tax laws pertaining to Global Medical Services as the Chief Executive Officer, including the requirement that the business would withhold federal income taxes and Social Security and Medicare (“FICA”) taxes from employees’ pay and report and pay over the withheld amounts to the Internal Revenue Service. Beginning in approximately 2018, Singh willfully failed to file quarterly payroll tax returns or pay over the withheld amounts and the employer’s contribution to FICA.
Singh and Chepuri each pleaded guilty to one count of wire fraud on December 29, 2023, in U.S. District Court before Chief Judge Patrick J. Schiltz. Singh also pleaded guilty to one count of willful failure to account for and pay over payroll taxes for withholding federal taxes from employee payroll and not reporting or paying the withholdings to the IRS. The plea agreements include restitution to the U.S. Small Business Administration for a fraudulent Paycheck Protection Loan obtained by the defendants for the company they operated. Sentencing hearings are scheduled for May 7, 2024 (Singh) and May 9, 2024 (Chepuri).
This case is the result of an investigation conducted by the FBI, the Minnesota Commerce Fraud Bureau, and the IRS.
Assistant U.S. Attorneys Robert M. Lewis and Chelsea A. Walcker are prosecuting the case.
Two Indicted for Armed Carjacking in MinneapolisRead the Press Release
MINNEAPOLIS – A St. Paul man and a Mounds View woman have been indicted for carjacking and firearm violations, announced U.S. Attorney Andrew M. Luger.
According to court documents, on October 6, 2023, Isis Martinaz Brent, 19, and Carvon Antonio Saine, 18, used violence and intimidation to steal a 2013 Chevrolet Malibu in South Minneapolis. During the carjacking, Brent and Saine used a semiautomatic firearm with the intent to cause bodily harm.
The indictment charges Brent and Saine each with one count of carjacking and one count of brandishing a firearm during a crime of violence. The defendants made their initial appearances today in U.S. District Court before Magistrate Judge Dulce J. Foster.
This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department.
Assistant U.S. Attorney David B. Green is prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Florida Residents Sentenced for $93M Health Care Fraud and Money Laundering SchemeRead the Press Release
A Florida man and woman were sentenced for their roles in a wide-ranging conspiracy to defraud Medicare by billing over $93 million for home health therapy services that were never rendered.
Karel Felipe, 42, of Miami Shores, was sentenced to eight years and four months in prison. Tamara Quicutis, 54, of Hialeah, was sentenced to five years and 10 months in prison. The court also ordered forfeiture of fraud proceeds. Both defendants were convicted in October 2023 after a jury found them guilty of conspiring to commit health care fraud and wire fraud and conspiring to commit money laundering.
According to court documents and evidence presented at trial, Felipe and Quicutis conspired with others to submit false bills to Medicare for three home health companies located in Michigan. Their co-conspirators recruited individuals from Cuba to sign Medicare enrollment documents and appear as the owners of the home health agencies to conceal the identities of Felipe, Quicutis, and others involved in the scheme. Felipe, Quicutis, and their co-conspirators used these home health companies to submit claims for services that were not rendered using lists of stolen patient identities. Felipe, Quicutis, and their co-conspirators used dozens of shell companies and hundreds of bank accounts to launder the Medicare fraud proceeds and convert the proceeds into cash at Miami-area ATMs and check cashing stores.
Four additional Florida residents were previously sentenced in the case. Jesus Trujillo, 52, of Miami, was sentenced to 14 years in prison after pleading guilty to conspiracy to commit health care fraud and wire fraud and conspiracy to commit money laundering. The court also entered a forfeiture money judgment against him for the amount involved in money laundering, $44,351,817, and ordered forfeiture of two real properties to satisfy that judgment. Didier Arcia, 44, of Davenport, was sentenced to six years and eight months in prison after pleading guilty to conspiracy to commit money laundering. Alexey Gil, 41, of Miami, was sentenced to five years and five months in prison after pleading guilty to conspiracy to commit health care fraud and wire fraud. Jeffrey Avila, 33, also of Miami, was sentenced to time served and supervised release after pleading guilty to conspiracy to commit money laundering.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office, and Acting Special Agent in Charge Stephen Mahmood of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) Miami Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorneys Jamie de Boer, D. Keith Clouser, and Emily Gurskis of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Gabrielle Raemy Charest-Turken for the Southern District of Florida is handling asset forfeiture.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
St. Louis Man County Man Admits 2022 CarjackingRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri on Friday admitted committing an armed carjacking in 2022.
La’Vontray Hayes-Williams, 20, of Jennings, pleaded guilty in U.S. District Court in St. Louis to one count of carjacking and one count of brandishing a firearm in furtherance of a crime of violence.
Hayes-Williams admitted stealing a 2018 Nissan Sentra on July 7, 2022, outside a Family Dollar store at 6440 West Florissant Avenue in Jennings. Hayes-Williams pulled out his Glock handgun and repeatedly ordered the driver to “give me the car.” He then sped away in the stolen car with his girlfriend. The victim called police, who quickly spotted the vehicle. Hayes-Williams fled, sparking a chase that lasted nearly ten miles and reached speeds of over 100 mph. Hayes-Williams was caught after the car stopped and he fled on foot, his plea agreement says.
Hayes-Williams is scheduled to be sentenced on April 4. The carjacking charge is punishable by up to 15 years in prison, a $250,000 fine, or both. The firearm brandishing charge carries a mandatory minimum sentence of seven years, consecutive to all other charges, and a maximum of life in prison.
The St. Louis County Police Department investigated the case. Assistant U.S. Attorney Nino Przulj is prosecuting the case.
Spencer Iowa Man Sentenced on Possession of Child PornographyRead the Press Release
A Spencer man was sentenced January 4, 2024, to more than 4 years in federal prison.
Leighton Marshal Jones, age 42, from Spencer, Iowa, received the prison term after an August 18, 2023, guilty plea to Possession of Child Pornography.
Evidence at Jones’ sentencing hearing established that between January 1, 2012, and December 7, 2017, Jones possessed over 1,500 images of child pornography copied across six electronic devices. Jones admitted to officers that he downloaded the child pornography in approximately 2012. Jones stated he had no interest in it but kept the child pornography because it was “different,” and he “knew he would not be able to get it again if he deleted it.” These images included material that portrayed toddlers, bestiality, and sadistic and masochistic conduct.
Jones was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Jones was sentenced to 51 months’ imprisonment and ordered to pay $14,000 in restitution to several victims. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Jones is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Federal Bureau of Investigations and Spencer Police Department and was prosecuted by Assistant United States Attorney Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-4015.
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South Florida Man Pleads Guilty to Participating in a Conspiracy to Distribute Protonitazene from ChinaRead the Press Release
MIAMI – Today, a south Florida defendant pled guilty to participating in a conspiracy to possess with intent to distribute a synthetic opioid, protonitazene.
Will Catis, Sr. (Catis), 42, of Deerfield Beach, pled guilty before U.S. District Judge Raag Singhal. According to the agreed upon factual proffer, on April 12, 2022, the U.S. Drug Enforcement Administration (DEA) Administrator issued a temporary order to schedule seven synthetic benzimidazole-opioid substances, including protonitazene, in schedule I of the Controlled Substances Act. Protonitazene is a synthetic opioid that is equally as potent, if not more potent, than fentanyl. As part of an investigation into Chinese chemical companies that were sending synthetic opioids, such as protonitazene, to the U.S. and Mexico, several U.S. based drug traffickers were identified. One of those individuals was Catis. Catis was obtaining protonitazene and metonitazene from Jiangsu Bangdeya New Material Technology Co. LTD. (“Bangdeya”).
On October 22, 2022, Postal Inspectors seized a parcel addressed to “Will Catis.” This parcel was sent from Bangdeya. On October 28, 2022, a search warrant was obtained for the parcel. The search revealed a plastic bag of yellowish powder determined to be 172.3 grams of protonitazene.
On December 27, 2022, a search warrant was obtained for the Catis’ electronic media which was found to contain videos reflecting a kilogram press, firearms, and large sums of U.S. currency. Additionally, there were screenshots and photos reflecting Catis’ drug trafficking, including chats with Chinese chemical company sales representatives, bags filled with a powdery substance that were similar to the seized protonitazene, and screenshots of advertisements from Chinese chemical companies selling protonitazene.
After Catis’ arrest and pursuant to searches of his residence and storage unit, the following substances were discovered(1) 258.7 grams of a mixture of bromazolam, protonitazene, metonitazene, and fentanyl; (2) 1060.1 grams of a mixture of metonitazene, protonitazene, fentanyl, and lidocaine; (3) 4654 grams of a mixture of n-propylbutylone, eutylone, fentanyl, heroin, metonitazene, protonitazene, p-fluorofentanyl, lidocaine, quinine, and caffeine; (3) 726.5 grams of 3,4-Methylenedioxy-α-cyclohexylaminopropiophenone; (4) 3.45 grams of protonitazene; (5) 28.77 grams of a mixture of protonitazene and cocaine; (6) 361.9 grams of a mixture N-Ethylpentylone, eutylone, metonitazene, protonitazene, fentanyl, heroin, α-Pyrrolidino-2-phenylacetophenone, p-Fluorofentanyl, quinine, lidocaine, and caffeine; (7) 1389.6 grams of a mixture of N-Ethylpentylone, metonitazene, eutylone, heroin, α-Pyrrolidino-2-phenylacetophenone, ANPP, quinine, caffeine, and lidocaine; (8) 571.6 grams of protonitazene; (9) 27.8 grams of metonitazene; (10) 28 grams of protonitazene; (11) 448.4 grams of bromazolam; and (12) 176 grams of a mixture of N-Propylbutylone, eutylone, metonitazene, fentanyl, protonitazene, bromazolam, heroin, lidocaine, quinine, and caffeine.
Catis’ sentencing hearing is scheduled for April 11, 2024, at noon. He faces up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the DEA, Miami Field Division, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS), Miami Division, and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI) Miami Field Office.
DEA Miami Field Division Counternarcotic Cyber Investigations Task Force, HSI Miami, USPIS-Miami, and IRS-CI Miami, Miami Field Office investigated this case.
Assistant U.S. Attorney Monique Botero for the Southern District of Florida is prosecuting the case. Assistant U.S. Attorney Michell Hyman for the Southern District of Florida is handling asset forfeiture.
The indictment is a result of Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF.
Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-CR-60116-Singhal.
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Snohomish County man who aimed laser at two small planes sentenced to prisonRead the Press Release
Seattle – A 41-year-old Snohomish County resident was sentenced today in U.S. District Court in Seattle to eight months in prison for two counts of aiming a laser pointer at an aircraft, announced Acting U.S. Attorney Tessa M. Gorman. Christopher W. Harris has been in custody since his bond was revoked in August 2023. Harris was indicted in February 2023 for the laser crimes reported on November 20, 2022. At the sentencing hearing, U.S. District Judge Richard A. Jones said the conduct that temporarily damaged the pilot’s vision “was very dangerous, life-threatening, and done without regard for the victims.”
“Shining a laser at aircraft is dangerous for the pilot, those on board, and even those on the ground if the pilot cannot see to safely land,” said Acting U.S. Attorney Gorman. “Because of that danger, congress made such conduct a specific federal crime. It is fortunate both planes were able to safely land.”
According to records filed in the case, at about 5:00 PM on November 20,2022, Harris points a blue laser pointer at the cockpit of a two-person personal aircraft. The plane was on a track to land at Arlington Airport. The pilot’s eyes were damaged by the laser beam, and he was unable to see his instrument panel. He was able to switch to the backlight on the instrument screen which allowed him to safely land the aircraft. The pilot needed medical treatment for his eye injury.
Speaking in court today, pilot Jonathon Fay said once his vision was damaged by the laser, “I had to figure out how to land the plane… If I had been flying an older aircraft without the instrument visual aids, I likely would not have survived…By the grace of God, I have no permanent vision loss.”
Just two and a half hours later, Harris pointed the laser pointer at a four-seat aircraft being flown by a student pilot. The flight instructor on the plane was able to get pictures showing the origin of the laser light and also photographed how it obscured the sight of the pilot.
Based on the video from the second plane and the flight plan of the first plane, the Federal Aviation Administration and the Arlington Police were able to identify the origin of the laser light as a storage facility in Marysville, Washington. The storage facility is about 1.5 miles from the Arlington Airport.
Using entry logs and video surveillance from the storage facility law enforcement identified Harris as the person using the laser pointer on the planes. He was arrested by law enforcement at the storage facility on December 9, 2022.
In asking the judge to sentence Harris to a year and a day in prison, Assistant United States Attorney Jocelyn Cooney wrote to the court, “Mr. Harris’s behavior in this case is particularly concerning. This was not one poor decision by Mr. Harris. The two incidents are separated by approximately two-and-a-half hours. Mr. Harris left the storage facility after lasering the first plane before returning to laser the second plane. Both times, Mr. Harris’s actions were deliberate. He pointed the laser for approximately twelve (12) to thirteen (13) seconds—a considerable time—and tracked the plane’s cockpit as it moved across the sky. The fact that Mr. Harris chose to go back and engaged in the same dangerous behavior demonstrates that this was not a one-off occurrence of illegal behavior.”
Judge Jones sentenced Harris to three years of supervised release to follow the prison term, with intensive addiction and mental health treatment. Referencing the pilot in court Judge Jones said, “In this case, you almost killed this man… He has a family and people who depend on him. He could have wound up in a fatal crash… There must be consequences for what you did.”
The case was investigated by the Arlington Police Department and the Federal Aviation Administration (FAA).
The case was prosecuted by Assistant United States Attorney Jocelyn Cooney.
Serial Fraudster Sentenced for Role in Multiple Investment Fraud SchemesRead the Press Release
A California man previously extradited from Mexico was sentenced yesterday to 4 years in prison for his role in two high-yield investment fraud schemes in which he and his co-conspirators defrauded elderly and other vulnerable victims out of millions of dollars.
According to court documents, Daniel Thomas Broyles Sr., aka Dan Thomas, 66, of Malibu, participated in a high-yield investment fraud scheme involving a sham company named Niyato Industries Inc. (Niyato). Broyles conspired with Niyato’s CEO, Robert Leslie Stencil, 66, of Charlotte, North Carolina, and others to defraud Niyato investors. Together, Broyles, Stencil, and others falsely portrayed Niyato as a leader in electric vehicle manufacturing and converting vehicles to run on compressed natural gas. In reality, Broyles knew, or intentionally avoided learning, that Niyato was merely a sham company that lacked any operational facilities or proprietary technology and virtually all investor funds were being disbursed among the co-conspirators and not used to promote Niyato’s business. In June 2016, after Broyles learned that federal law enforcement agents were investigating Niyato, he relocated to Mexico. When, in August 2016, he learned that he had been indicted, Broyles moved to a new address in Mexico and began using the alias “Daniel Cruz Torrez” to hide from federal law enforcement agents and obstruct the federal government’s prosecution of him.
Broyles also participated in a second high-yield investment fraud involving EarthWater Limited (EarthWater). Broyles conspired with EarthWater’s CEO, Cengiz Jan Comu, 63, of Dallas, and others to sell EarthWater stock. Broyles and others made numerous false and misleading representations, including that EarthWater used the money raised from victim investors to develop and operate the company’s business. In truth, Broyles, Comu, and their co-conspirators had agreed to use the invested victim funds largely for their personal benefit.
Broyles was extradited from Mexico in March 2022. In June 2022, Broyles pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, and one count of money laundering in connection with the Niyato scam. Broyles also pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud in connection with the EarthWater fraud.
Seven other defendants have previously been convicted in connection with the Niyato scam, including Stencil, who was convicted following a three-week jury trial and sentenced to 12 years and three months in prison.
Eleven other defendants have pleaded guilty in connection with the EarthWater fraud, including Comu, who was sentenced to 10 years in prison.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Dena J. King for the Western District of North Carolina, U.S. Attorney Leigha Simonton for the Northern District of Texas, Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division, and Inspector in Charge Eric Shen of the USPIS Criminal Investigations Group made the announcement.
Mexican officials provided significant assistance in the extradition of Broyles to the United States. The Justice Department’s Office of International Affairs also provided substantial assistance in securing the arrest and extradition of Broyles.
USPIS investigated the case. The U.S. Marshals Service transported Broyles from Mexico to the United States.
Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section is prosecuting both cases. Trial Attorney Theodore Kneller of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Walters for the Northern District of Texas are also prosecuting the EarthWater case.
Seattle man who distributed thousands of fentanyl pills in Whatcom County sentenced to six years in prisonRead the Press Release
Seattle – A 33-year-old Seattle man was sentenced today in U.S. District Court in Seattle to six years in prison for distributing fentanyl and illegally possessing firearms, announced Acting U.S. Attorney Tessa M. Gorman. Ahbdurman Ahmed was one of six people indicted in April 2023 for a conspiracy to distribute fentanyl in Whatcom County. At the sentencing hearing, U.S. District Judge Richard A. Jones said, it was critical that he protect the public. Judge Jones told Ahmed, “I can’t imagine how you would feel if someone sold fentanyl to your children.”
“This defendant sold thousands of fentanyl pills in Whatcom County, pills that nearly killed him in an overdose,” said Acting U.S. Attorney Gorman. “Even after that brush with death, he continued to sell – putting others at risk. Drug suppliers must be held accountable for their conduct, whether driven by addiction or by greed – in this case it appears it was both.”
“DEA, along with our Federal, state, local, and tribal partners, works tirelessly to safeguard our communities by holding people like Mr. Ahmed accountable for distributing death in the form of fentanyl,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “We will go to any lengths to take armed traffickers off the streets and create a safe environment for Whatcom County and Lummi Nation residents, as we showed in this case.”
According to court records, law enforcement officers observed various drug transactions and interdicted the drug loads. On December 30, 2022, law enforcement was called to a mini mart where Ahmed and another person had overdosed on fentanyl and had to be revived and transported to the hospital. Nevertheless, ten days later Ahmed was seen trafficking fentanyl pills once again. In mid-January 2023, law enforcement seized bags containing 1,000 pills from two of Ahmed’s customers. In March of 2023, law enforcement seized a total of 3,000 fentanyl pills from Ahmed. Ahmed was armed at the time of the second seizure -- a Glock handgun with an extended magazine was found with him in the car he was driving. He is prohibited from possessing firearms due to prior criminal convictions.
“The Whatcom County Sheriff’s Office is committed and will continue locating dangerous drug traffickers that are poisoning our communities with potentially deadly substances,” said Whatcom County Sheriff Donnell Tanksley. “Losing one community member to an overdose, fatal or otherwise, is one community member too many – we are all family. We will also continue to work with our community partners to guide those affected by addiction to needed resources.”
The other defendants in this case are:
- Robel Sisay Gebremedhin A/K/A Robel Sisay Gebremedhui, 41, of Burien, WA is charged with: possession of fentanyl with intent to distribute; unlawful possession of a firearm; and carrying a firearm in furtherance of a drug trafficking crime. He is being sought by law enforcement.
- Mohamed Abdirisak Mohamed, 35, of Seattle, WA is charged with: possession of fentanyl with intent to distribute; unlawful possession of a firearm; and carrying a firearm in furtherance of a drug trafficking crime. Trial is scheduled for March 2024.
- Matthew Anderson, 35, of Bellingham, WA is also charged with: two counts of possession of fentanyl with intent to distribute. His trial is scheduled for March 2024.
- Daniel John Faix, 41, of Bellingham, WA pleaded guilty yesterday to Possession of controlled substances with intent to distribute, unlawful possession of firearms, and possession of firearms in furtherance of a drug trafficking crime. He is scheduled for sentencing on March 29, 2024.
- Natasha Parkhill, 38, of Bellingham, WA was arraigned on the indictment for possession of fentanyl with intent to distribute in November 2023 and remains detained pending trial.
In asking for a seven-year prison sentence, Assistant United States Attorney Stephen Hobbs wrote to the court, “Ahmed was involved in an ongoing conspiracy to distribute fentanyl in Whatcom County. Many of these drugs ended up being distributed on the Lummi Indian reservation, a community hard hit by the fentanyl pandemic. The Court is certainly aware of the dangers that these drugs – particularly fentanyl – pose to those who use them. Ahmed himself, as a drug user who has overdosed on fentanyl, was obviously aware of the risk of death or injury this drug presents. Ultimately, Ahmed – for whatever reason – was willing to personally profit from the distribution of an addictive and often deadly controlled substance.”
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .
This investigation was led by the Drug Enforcement Administration (DEA) and the Whatcom County Drug and Gang Task Force, with valuable assistance provided by the Whatcom County Sheriff’s Office, Washington State Patrol, and the Whatcom County Prosecutor’s Office.
The case is being prosecuted by Assistant United States Attorney Stephen Hobbs.
Portsmouth Man Sentenced for Carjacking at GunpointRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced yesterday to 15 years in prison for armed carjacking.
According to court documents, on July 11, 2022, Raequan Rucker, 23, along with a co-conspirator, simultaneously approached two women late at night and stole their vehicles at gunpoint. At the time of the carjacking, one victim had her 9-month-old baby in the backseat. After Rucker entered one vehicle and his co-conspirator entered the other, they drove off and met at a location in Portsmouth where Rucker’s co-conspirator dumped his vehicle and entered Rucker’s. The two men then traveled to Virginia Beach, where they were subsequently located by Virginia Beach Police in a retention pond.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Paul Neudigate, Chief of Virginia Beach Police made the announcement after sentencing by U.S. District Judge Mark S. Davis.
Assistant U.S. Attorney Matthew Heck prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-124.
Peoria Felon Sentenced to 57 Months’ Imprisonment for Possession of a FirearmRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Jamarcus J. Hollingsworth, 30, was sentenced today to 57 months’ imprisonment, to be followed by three years of supervised release, possessing a firearm as a felon.
At the sentencing hearing before Senior U.S. District Judge Joe B. McDade, the government established that in May 2023, agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives received information that Hollingsworth, a felon, was in possession of firearms and was offering to sell a pistol in Peoria. The Peoria Area Federal Firearms Task Force conducted an investigation that led to the arrest of Hollingsworth at a hotel on West War Memorial Drive. During the course of the arrest, agents located a loaded pistol on the driver’s seat of the car Hollingsworth had been driving. Agents then obtained a search warrant for Hollingsworth’s home and, during the search, located an AR-15 rifle loaded with 28 rounds of live ammunition. The serial number on the rifle had been obliterated. At the time of his arrest, Hollingsworth was on parole for a state conviction for aggravated robbery, having previously been sentenced to the Illinois Department of Corrections.
A federal criminal complaint was filed against Hollingsworth in May 2023 and an indictment followed in June 2023. He pleaded guilty in September 2023.
The statutory penalties for possessing a firearm as a felon are up to 15 years’ imprisonment and up to three years of supervised release.
The Peoria Area Federal Firearms Task Force, comprised of agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Peoria Police Department; the Peoria County Sheriff’s Department; Illinois Department of Corrections; and the Illinois State Police, investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Hollingsworth 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.
Owensboro Felon Sentenced to over 9 Years in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
Owensboro, KY – An Owensboro man was sentenced yesterday to 9 years and 10 months in federal prison for the illegal possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Chief Art Ealum of the Owensboro Police Department made the announcement.
According to court documents, Skylar Chase Riney, 37, was sentenced to 9 years and 10 months in prison, followed by 3 years of supervised release, for possession of a firearm by a convicted felon. On February 18, 2022, in Daviess County, Kentucky, Riney possessed three firearms, an Armscor, model 206, .38 caliber handgun, a Smith and Wesson, model M&P 9 M2.0, and a Kimber, model K6S Combat, .357 caliber revolver. Riney was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On June 3, 2019, in Daviess Circuit Court, Riney was convicted of possession of a controlled substance in the first degree, first offense, Lortab, possession of a controlled substance in the first degree, first offense, methamphetamine, possession of drug paraphernalia while in possession of a firearm, and possession of a firearm by a convicted felon.
On June 3, 2019, in Daviess Circuit Court, Riney was convicted of trafficking in a controlled substance in the first degree, first offense, less than or equal to 2 grams methamphetamine and possession of a controlled substance in the first degree, first offense, opiates.
On August 9, 2017, in Daviess Circuit Court, Riney was convicted of burglary in the third degree, possession of a controlled substance in the first degree, methamphetamine, and theft by unlawful taking or disposition, $500 but less than $10,000.
On April 20, 2016, in Daviess Circuit Court, Riney was convicted of theft by unlawful taking of property valued at $500 but less than $10,000 (shoplifting).
On July 1, 2010, in Daviess Circuit Court, Riney was convicted of possession of a firearm by a convicted felon.
On December 19, 2005, in Ohio Circuit Court, Riney was convicted of theft by unlawful taking or disposition.
There is no parole in the federal system.
The case was investigated by the Owensboro Police Department and FBI Owensboro, with assistance from the ATF.
Assistant U.S. Attorney Frank Dahl 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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North Carolina Woman Indicted for Embezzling More Than 500,000 from Farwell Funeral Service in NashuaRead the Press Release
CONCORD – A North Carolina woman was indicted in connection with charges arising out of her embezzlement of funds from her previous employer, Farwell Funeral Service in Nashua, U.S. Attorney Jane E. Young announces.
LaSaundra Simmons, 51, previously of Nashua, was indicted on 10 counts of wire fraud on December 6, 2023. Simmons was arrested in North Carolina on December 11, 2023, and was ordered released on conditions on January 3, 2023.
According to the charging documents, Simmons worked as the bookkeeper for Farwell Funeral Service, Inc. for several years. Starting in 2015, and continuing until it was discovered in January 2023, Simmons employed a scheme to embezzle funds from the company. On more than 100 occasions, she either made unauthorized wire transfers of funds from the funeral home’s bank account to her own account, or drafted unauthorized checks which she deposited by electronic wire transfer into her own account. She would often describe these checks as “commissions” or “consulting fees.” She embezzled more than $500,000 over the course of the scheme.
Each charge of wire fraud provides for a sentence of up to 20 years in prison, and up to 3 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.
The Federal Bureau of Investigation and the Nashua Police Department led the investigation. Assistant U.S. Attorney Charles L. Rombeau is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Nevada Owner of Three Mexican Restaurants Sentenced to More Than Three Years in Prison for Tax EvasionRead the Press Release
A Nevada man was sentenced yesterday to 37 months in prison for evading his federal income taxes.
According to court documents and statements made in court, Raul Gil owned and operated three Casa Don Juan restaurants in Las Vegas. From 2014 through 2018, Gil instructed his manager and internal bookkeeper to create false sales numbers for his restaurants that underreported cash sales by approximately $5.1 million. Gil then provided those falsified records to an accountant who unwittingly used them to prepare false business and personal income tax returns for those years.
Then, in July 2018, during an IRS audit, Gil directed his accountant to provide the IRS with profit and loss statements that matched the figures reported on the false tax returns. Gil also directed his manager/bookkeeper to create and provide the IRS with false daily cash and sales reports purportedly printed from the restaurants’ point-of-sale systems. During interviews with the IRS, Gil falsely stated to the revenue agent conducting the audit, and later to IRS special agents conducting a criminal investigation, that the falsified daily cash reports and point-of-sale records were accurate. In total, Gil caused a tax loss to the IRS of approximately $1.6 million.
In addition to the term of imprisonment, U.S. District Judge Andrew P. Gordon for the District of Nevada ordered Gil to serve three years of supervised release and to pay $2,228,943.65 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Thomas Flynn of the Justice Department’s Tax Division and Assistant U.S. Attorney Tony Lopez for the District of Nevada prosecuted the case.
Mississippi Man Sentenced to More Than 12 Years in Prison for a Violent Hobbs Act Robbery and Firearms ViolationsRead the Press Release
ST. PAUL, Minn. – A Mississippi man has been sentenced to 155 months in prison followed by five years of supervised release for a violent Hobbs Act robbery and firearms violations, including possessing a stolen firearm and aiding and abetting false statements during the purchase of a firearm, announced United States Attorney Andrew M. Luger.
According to court documents, Ladarius Jaleel Snipes, 27, and his co-conspirators, Kendarrius Keshaun Willard, 27, and Anna Trameri Novacheck, 28, agreed to illegally acquire firearms through a straw purchasing conspiracy. On November 1, 2021, Snipes, Willard, and Novacheck went to a Federal Firearms Licensee (FFL) to purchase a firearm. At the direction of and with assistance from Snipes and Willard, Novacheck purchased an Alex Pro model Econo 5.56 caliber semiautomatic pistol. During the purchase, Novacheck signed the ATF Form 4473 stating that she was the actual buyer of the firearm when, in fact, she was buying it for Snipes and Willard. Willard has prior felony convictions and is prohibited from possessing firearms or ammunition at any time. Snipes was later photographed holding the firearm with an attached large capacity magazine.
On January 5, 2022, Snipes burglarized a home in St. Paul. A doorbell camera captured Snipes breaking a window and entering the home. While inside, Snipes stole an Aero Precision model X15 multi-caliber semiautomatic pistol. During the burglary, Snipes used a firearm he acquired in the straw purchasing conspiracy to shoot and kill the homeowner’s golden retriever.
On August 7, 2021, Snipes entered a restaurant in Cleveland, Mississippi, armed with a semiautomatic pistol. Snipes showed the firearm and demanded that a store employee give him the money in the cash register. When one of the employees ran to the back of the kitchen, Snipes discharged the firearm to scare the employees. Snipes was charged in the Northern District of Mississippi with Hobbs Act robbery and discharge of a firearm during a crime of violence.
On August 31, 2023, Snipes pleaded guilty to aiding and abetting false statement during the purchase of a firearm, possession of a stolen firearm, Hobbs Act Robbery, and discharge of a firearm during a crime of violence. Snipes was sentenced yesterday in U.S. District Court by Judge Donovan W. Frank.
On May 30, 2023, Willard pleaded guilty to aiding and abetting false statement during the purchase of a firearm and was sentenced to 90 months in prison followed by three years of supervised release. On June 7, 2023, Novacheck pleaded guilty to conspiracy to make false statements during the purchase of a firearm and was sentenced to three years of probation.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Paul Police Department, the Department of Homeland Security, the Minnesota State Patrol, and the Cleveland (Mississippi) Police Department.
Assistant U.S. Attorney Thomas Calhoun-Lopez from the District of Minnesota and Assistant U.S. Attorney Robert Mims from the Northern District of Mississippi prosecuted the case.
Minnesota Man Pleads Guilty to Tax Fraud SchemeRead the Press Release
A Minnesota man pleaded guilty today to wire fraud and assisting in the preparation of a false income tax return.
According to court documents and statements made in court, from 2012 to 2018, Beau Wesley Gensmer, of Prior Lake, devised a scheme to assist in the preparation of at least 50 false tax returns that claimed fraudulently inflated tax refunds on behalf of unwitting taxpayer clients. In furtherance of his scheme, Gensmer hired a tax return preparer in Anchorage, Alaska, to whom he emailed knowingly false information, including fraudulent business losses and charitable contributions, for each return she prepared.
The return preparer relied on the information she received from Gensmer to prepare and electronically file false returns for each of his clients. Gensmer charged his clients a commission of approximately 30% of each fraudulent refund. In total, Gensmer caused a tax loss to the IRS of at least $3.5 million.
Gensmer is scheduled to be sentenced on May 7 and faces a maximum penalty of 20 years in prison for wire fraud and three years in prison for assisting in the preparation of a false tax return. He also faces a period of supervised release, restitution and monetary penalties. U.S. District Judge John R. Tunheim for the District of Minnesota will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Andrew M. Luger for the District of Minnesota made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Ahmed Almudallal and Dominick Giovanniello of the Justice Department’s Tax Division are prosecuting the case.
Middletown man pleads guilty to possessing firearm as part of drug traffickingRead the Press Release
CINCINNATI – Christopher Lawrence Spicer, 23, of Middletown, pleaded guilty in U.S. District Court today to possessing a firearm in furtherance of a drug trafficking crime. Spicer led local officers on a high-speed chase in spring 2023 before being arrested.
According to court documents, on March 16, 2023, Spicer was approached by law enforcement while driving a stolen Ford F-150 in a Middletown business parking lot. Spicer backed into a police cruiser and fled throughout Middletown at speeds exceeding 90 miles per hour. While fleeing, Spicer ran a red light at the intersection of Roosevelt Boulevard and Jackson Lane. Spicer collided with another vehicle, rendering his own vehicle disabled. He was arrested at that time.
When officer’s searched Spicer’s truck, they discovered a loaded Romarm/Cugir Micro Draco 7.62x39mm pistol and more than 200 fentanyl pills.
The parties involved in Spicer’s case have recommended a sentence of 60 months in prison. The Court will consider that recommendation at a future sentencing hearing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Middletown Police Chief David Birk announced the guilty plea entered today before U.S. District Judge Douglas R. Cole. Assistant United States Attorney Ryan A. Keefe is representing the United States in this case.
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Mexican National Charged with Illegal ReentryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Pedro Millan-Montero, age 36, of Mexico, was indicted on January 3, 2024, by a federal grand jury for illegal reentry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, the indictment alleges that Millan-Montero was previously removed from the United States on June 15, 2012, through Hidalgo, Texas, and it is alleged that he was subsequently found in the United States without having first obtained legal permission to reenter the country. The indictment also alleges that on December 14, 2023, Millan-Montero was encountered in Lebanon County, Pennsylvania.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Michael Scalera is prosecuting the case.
The maximum penalty under federal law for this offense is ten years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Louisville Woman Sentenced to 10 Years for Trafficking a Fentanyl AnalogueRead the Press Release
COVINGTON, Ky. – A Louisville woman, Autumn Leslie Childress 42, was sentenced on Friday, to 10 years in federal prison, by U.S. District Judge David Bunning, for possession of 100 grams or more of a fentanyl analogue with intent to distribute.
According to her plea agreement, law enforcement received information that Childress would be transporting controlled substances from South Carolina to Louisville, and then to Cincinnati to distribute. On November 16, 2022, law enforcement stopped Childress in Boone County and located over a kilogram of a fentanyl analogue divided into multiple packages prepared for distribution. A subsequent search of her residence uncovered additional drugs and drug trafficking paraphernalia. In all, she possessed more than 1.5 kilograms of illegal drugs.
Under federal law, Childress must serve 85 percent of her prison sentence. Upon her release from prison, she will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; jointly announced the sentence.
The investigation was conducted by the DEA. Assistant U.S. Attorney Tony Bracke is prosecuting the case on behalf of the United States.
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Long Island Construction Company Pleads Guilty to Worker Safety Violation Causing Death of an EmployeeRead the Press Release
Northridge Construction Corporation pleaded guilty to criminal charges today in federal court in Central Islip, New York. A sentencing hearing is scheduled for April 3.
The three-count information alleges that, in 2018, during the construction of a shed on Northridge’s property in East Patchogue, New York, one of its employees fell from an improperly secured roof and died. The Occupational Safety and Health Administration (OSHA) investigated the employee’s death.
Among other worker safety standards, OSHA regulations require always maintaining the stability of a metal structure during construction. Northridge pleaded guilty to violating this worker safety standard which caused the death of one of its employees and to making two false statements that obstructed the federal agency’s inquiry into the employee’s death.
The maximum penalty for each of the criminal offenses is five years’ probation and a $500,000 fine, or twice the economic gain to the defendant or loss suffered by the victim because of the crime.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) made the announcement.
Senior Trial Attorneys Daniel Dooher and Richard J. Powers and Trial Attorney Rachel Roberts of ENRD’s Environmental Crimes Section are prosecuting the case.
Lodge Grass man admits meth trafficking charge in large-scale drug conspiracy based on Crow Indian ReservationRead the Press Release
BILLINGS — A Lodge Grass man suspected of participating in a large-scale drug conspiracy based on the Crow Indian Reservation admitted on Jan. 4 to a methamphetamine trafficking crime, U.S. Attorney Jesse Laslovich said today.
Daniel Jiminez-Chavez, aka Raton, 40, pleaded guilty to possession with intent to distribute meth. Jiminez-Chavez faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for May 1. Jiminez-Chavez was detained pending further proceedings.
The government alleged in court documents that federal law enforcement, in a collaborative effort with local and tribal law enforcement, conducted a large-scale, narcotics trafficking investigation centered on multiple properties on the Crow Indian Reservation. The properties, including one referred to as Spear Siding, were a source of supply of meth for both the Crow and Northern Cheyenne Indian Reservations from about January 2022 through March 2023. Jiminez-Chavez, aka Raton, is one of the individuals associated with the investigation.
The government alleged that Jiminez-Chavez began staying at a house near Spear Siding, known as the Bloodman residence. While at the residence, Jiminez-Chavez distributed meth to others and was in contact with individuals in the conspiracy.
The U.S. Attorney’s Office is prosecuting the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Kissimmee Real Estate Broker Pleads Guilty to Committing Bank FraudRead the Press Release
Orlando, FL –United States Attorney Roger B. Handberg announces that Maria Del Carmen Montes (46, Kissimmee) has pleaded guilty to three counts of bank fraud. Each bank fraud count carries a maximum penalty of 30 years in federal prison. Montes was indicted, along with coconspirator Carlos Ferrer, on July 20, 2022.
According to the plea agreement, Montes, coconspirator Ferrer, and others created and executed a mortgage fraud scheme targeting financial institutions. Montes assisted clients with purchasing homes and after signing the real estate contract, referred her buyers to a loan officer at a mortgage company. In order to qualify her clients for mortgages loans for which they were unqualified, Montes transferred the personally identifying and financial information of her clients to Ferrer and directed Ferrer to create fictitious paystubs and W-2s showing false earnings and length of employment for her clients knowing that her clients never worked for the companies on the fictitious employment documents. After Ferrer created the documents, Montes submitted the fictitious paystubs and W-2s to the financial institutions who relied on them when making underwriting decisions.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, the U.S. Department of Housing and Urban Development – Office of Inspector General, and the Federal Bureau of Investigation. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Kennewick Man and Woman Sentenced to Decades in Federal Prison for Child AbuseRead the Press Release
Richland, Washington – On January 4, 2023, United States District Judge Mary K. Dimke sentenced Bret Michael Emineth, age 41, to 30 years in federal prison for engaging in years-long sexual abuse of a minor victim and recording images depicting the abuse. The Court also sentenced Emineth’s codefendant, Malesa Hale, age 37, to 28 years in federal prison for conspiring with Emineth to abuse the victim and record the abuse. Judge Dimke also ordered both Emineth and Hale to pay restitution to the victim, and imposed a lifetime of federal supervision on both defendants upon their release from custody. Emineth and Hale are each from the Tri-Cities. Emineth, who began abusing the minor victim when the minor was only 12 years old, will also plead guilty to related charges in Benton County Superior Court.
“I simply cannot convey how horrendousness this behavior is,” Judge Dimke said from the bench, recognizing that Emineth and Hale had inflicted “harm that will last for a lifetime.” Directly addressing the victim, Judge Dimke said: “You are brave. You are strong. You are courageous. You saved others from the hell that you were subjected to,” by reporting to law enforcement. Judge Dimke specifically told the victim that if the victim had not come forward, there was no doubt that Emineth and Hale would have expanded their abuse to other children.
According to court documents and proceedings, in June 2021 the victim reported to the Kennewick Police Department that Emineth had repeatedly sexually and physically abused the victim for approximately 4 years. The victim told detectives that the abuse had started with grooming and touching, and progressed to sexual intercourse. In 2019, Emineth’s then-girlfriend, Hale, became suspicious of Emineth’s relationship with the victim. When Hale confronted Emineth, he told her that he was abusing the victim. Instead of reporting the abuse to law enforcement, Hale expressed interest and joined Emineth in sexually abusing the victim.
KPD detectives found explicit text messages between Emineth and Hale discussing their sexual abuse of the victim and their plans for future sexual abuse of the victim and other children. The messages also included photos of the victim being abused, many of which Emineth had taken at Hale’s direction and sent to Hale. KPD detectives then worked closely with Homeland Security Investigations (“HSI”) and the Southeast Regional Internet Crimes Against Children Task Force (“ICAC”) to perform full forensic examinations of the defendant’s cell phones, which revealed the extent of Emineth and Hale’s abusive conduct.
“Emineth and Hale’s child abuse was egregious, and today’s significant sentences recognize the horrors that the victim endured. But no sentence can return a child’s innocence,” said United States Attorney Vanessa R. Waldref. “All children deserve to live free from those who seek to exploit them. The U.S. Attorney’s Office will continue to prioritize offenses against our community’s youngest and most vulnerable victims. Today’s hearing sent one clear message to the victim, which is shared by each of the detectives, agents, and prosecutors who worked with you: we believe you.”
"This sentence is a testament to the resilience and confidence in law enforcement exhibited by the victim in this case," stated Special Agent in Charge (SAC) Robert Hammer, responsible for overseeing HSI operations in the Pacific Northwest. "The era of victimization has ended for this child, and HSI, along with our law enforcement collaborators, will tirelessly strive to prevent such exploitation from befalling anyone else."
“We express our gratitude to the detectives, witnesses, and the courageous child survivor for putting a stop to these horrific acts," stated Kennewick Police Chief Chris Guerrero. "We also extend our appreciation to the US Attorney’s Office and Homeland Security Investigations for collaborating with us to ensure accountability for those who victimize our children."
"The collaborative partnership of the SER-ICAC Task Force, which unites our law enforcement counterparts from Richland PD, Kennewick PD, and Homeland Security Investigations (HSI), in conjunction with the concerted efforts of the Benton County Prosecutor’s Office and the United States Attorney’s Office, has proven instrumental again in securing a successful plea deal with a substantial sentence," stated Commander Damon Jansen, Investigations Division with the Richland Police Department." Outcomes like this, marked by their severity, contribute significantly to the administration of justice for the children within our community who have endured egregious abuse yet have emerged as survivors."
This case was investigated by the Kennewick Police Department (“KPD”), Homeland Security Investigations (“HSI”), and the Southeast Regional Internet Crimes Against Children Task Force (“ICAC”). The federal case was prosecuted by Assistant United States Attorneys Laurel Holland and David Herzog, and the state case was prosecuted by Deputy Prosecuting Attorney Anita Petra of the Benton County Prosecutor’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Justice Department’s Collaborative Reform Initiative Technical Assistance Center Reaches 1,000 Technical Assistance Engagements with Local Law Enforcement AgenciesRead the Press Release
The Justice Department today announced that the Collaborative Reform Initiative Technical Assistance Center (CRI-TAC), which provides a wide array of technical assistance services for the law enforcement field, has achieved a major milestone in providing more than 1,000 technical assistance engagements to state, local, tribal, and territorial law enforcement agencies across the country.
Developed by the Justice Department’s Office of Community Oriented Policing Services (COPS Office), the Collaborative Reform Initiative helps law enforcement agencies and the communities they serve identify and implement organizational improvements and reforms through training, consultation, peer-based learning, analysis, and in-depth assessments. The Initiative is structured as a continuum of services offered to law enforcement agencies on a strictly voluntary basis. CRI-TAC, one of three programs under the broader Collaborative Reform Initiative, provides critical, tailored technical assistance resources to state, local, tribal, territorial and campus law enforcement agencies on a wide variety of topics.
“The CRI-TAC Initiative has been a key component of the expanded Collaborative Reform Initiative relaunched almost two years ago," said Associate Attorney General Vanita Gupta. "The response we’ve seen – now over 1000 engagements on everything from de-escalation training to officer wellness and countless other topics – speaks to the demand for, and utility of, this form of technical assistance provided ‘by the field, for the field.’ The Justice Department is grateful for the extensive engagement and partnerships with law enforcement and community groups as we continue to enhance and expand our technical assistance offerings to support public safety and police-community trust.”
The Attorney General and the Associate Attorney General announced the expansion of the Collaborative Reform in March of 2022.
Some of the areas of technical assistance requested most by agencies include de-escalation techniques, active threat response, public sector coordination and partnerships, school and campus safety, and officer safety and wellness. Specific topics have included the following:
- Using a public health approach to address violent crime
- Strengthening proactive youth engagement within a transit agency
- Improving safety and wellness programming throughout an officer’s career
- Using the internal discipline process for enhanced accountability
The types of technical assistance most requested are training and resource referrals; virtual and on-site consultations are the next most frequent forms of technical assistance delivered. Other forms of technical assistance included policy reviews and in-depth briefings from subject matter experts.
In the evaluations submitted following their engagements, agencies uniformly praised all aspects of the program – from the delivery of services and the subject matter experts provided, to the quality of the information received, to the gains in their level of knowledge and the ability to make positive changes in their agencies based on the training and technical assistance received.
“This is a big milestone for the COPS Office’s technical assistance efforts, and I am extremely grateful that so many law enforcement agencies across the country have been able to get the help they need through the Collaborative Reform Initiative,” said Director Hugh T. Clements, Jr. of the COPS Office. “When law enforcement agencies reach out for help, communities are the ultimate beneficiaries. We look forward to building on this success by helping many more agencies in the months and years ahead.”
Through CRI-TAC, the COPS Office partners with the International Association of Chiefs of Police (IACP) and eight other leading law enforcement organizations to deliver tailored technical assistance that meets the needs of law enforcement agencies in a “by the field, for the field” approach. Partner agencies include:
- FBI National Academy Associates
- Fraternal Order of Police
- International Association of Campus Law Enforcement Administrators
- International Association of Directors of Law Enforcement Standards and Training
- National Association of Women Law Enforcement Executives
- National Organization of Black Law Enforcement Executives
- National Sheriffs’ Association
- National Tactical Officers Association
Applications to request assistance from CRI-TAC are accepted on a rolling basis, and the technical assistance is delivered at no cost to the agency. Agencies interested in requesting collaborative reform technical assistance can learn more at www.cops.usdoj.gov/collaborativereform.
The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers.
Justice Department Marks More Than 500 Illegal Firearm Purchases Stopped by New Enhanced Background ChecksRead the Press Release
On June 25, 2022, President Biden signed the Bipartisan Safer Communities Act (BSCA) into law. Among other provisions aimed at reducing gun violence, BSCA requires the FBI’s National Instant Criminal Background Check System (NICS) to conduct an enhanced background check before any sale or transfer of a firearm to a person under the age of 21 (U21). In addition to the traditional records databases reviewed during a standard background check, these U21 checks involve expanded outreach by the FBI’s NICS Section to state and local officials who may have access to additional disqualifying information.
Since implementing BSCA’s enhanced background checks in October 2022, the FBI NICS Section has conducted enhanced background checks on more than 200,000 transactions. Those checks have kept more than 1,900 firearms out of the hands of dangerous and prohibited persons, and over a quarter of those denials — 527 as of the first week of January — were based solely on information received through the additional BSCA-enabled outreach. Without the enhanced outreach required by BSCA, these 527 U21 transactions would likely have proceeded because the disqualifying information was otherwise unavailable to NICS.
“In the 19 months since the passage of the Bipartisan Safer Communities Act, the law’s expanded background checks have already kept 500 firearms out of the hands of young people who are prohibited from having them,” said Attorney General Merrick B. Garland. “The Justice Department will continue to bring to bear every tool we have to combat the gun violence that plagues our communities.”
The 500th BSCA-specific U21 denial — which was recorded on Dec. 18, 2023 — involved a prospective purchaser whose transaction was denied after a state police officer provided records, otherwise not available to NICS, that showed the prospective purchaser to be an unlawful user of, or addicted to, a controlled substance. Other exemplary U21 denials include:
- A sheriff’s office responded to the NICS Section with an incident report implicating the U21 purchaser in a rape offense. The NICS Section obtained court documentation establishing that the purchaser was convicted of felony rape. The transaction was denied based on the federal prohibitor for persons convicted of a crime punishable by more than one year.
- A sheriff’s office responded to the NICS Section with an incident report indicating that the U21 purchaser had been arrested for attempted murder and other offenses. The NICS Section obtained court documentation showing that the U21 purchaser was released on bond with court-ordered firearm restrictions pending the resolution of those charges. The transaction was denied based on a state prohibitor for active court-ordered firearm restrictions.
- During BSCA-mandated outreach, a juvenile court provided documentation establishing that a U21 purchaser was found to be mentally ill and involuntarily committed for mental-health treatment. The transaction was denied based on the federal firearm prohibitor relating to mental-health adjudications.
- A police department informed the NICS Section that the U21 purchaser was under felony indictment for sexually exploiting a minor. The transaction was denied based on the federal firearm prohibitor for persons under active felony indictment.
- During BSCA-mandated outreach, a county court provided the NICS Section with documentation that the U21 purchaser had sustained juvenile adjudications for sexual battery, possession of a knife at school, and intimidation. The transaction was denied based on a state prohibitor for disqualifying juvenile adjudications.
- A sheriff’s office informed the NICS Section that a U21 purchaser was currently in jail on multiple pending charges, including domestic violence, robbery, and assault with a dangerous weapon. The transaction was denied based on the federal firearm prohibitor for persons under active felony indictment.
- A police department provided the NICS Section with an incident report for a U21 purchaser who was making suicidal threats and transported for emergency detention at a local in-patient psychiatric center. The transaction was denied based on the federal firearm prohibitor relating to mental-health adjudications.
The FBI continues to engage in extensive education and outreach efforts to improve the state and local partnerships necessary to the success of these enhanced background checks, including by hosting trainings for over 500 law-enforcement agencies and more than 2,000 state criminal-justice officials.
Jackson Man Pleads Guilty to Conspiring to Defraud Vehicle Sellers on Facebook MarketplaceRead the Press Release
Jackson, MS – A Jackson man pled guilty to conspiracy to commit wire fraud through Facebook Marketplace.
According to court records, Jerrick Floyd, 24, conspired with others to organize a scheme to defraud individuals selling vehicles on Facebook Marketplace. The victim would receive a fake cashier’s check or wire transfer to their bank and Floyd would arrange for an accomplice to pick up the vehicle before the victim discovered they had been deceived.
Floyd will be sentenced on April 3, 2024. He faces up to twenty years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Acting Special Agent in Charge Jessica Orench of the Federal Bureau of Investigation made the announcement.
The case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Lynn Murray is prosecuting the case.