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21 December 2023
Federal Jury Convicts Massachusetts Man of Kidnapping and Interstate Violation of a Protective OrderRead the Press Release
PORTLAND, Maine: A Brighton, Massachusetts man was found guilty on Wednesday of kidnapping and transporting a woman into Maine against her will. The verdict came after a three-day trial in the U.S. District Court in Portland with Chief Judge Jon D. Levy presiding.
According to evidence presented during the trial, on December 15, 2019, Stephen Pilson, 56, drove the victim, with whom he had a relationship, from Massachusetts to Maine against her will. Throughout the trip, Pilson drank heavily and told the victim they were going to Canada where she would die. He tied the victim to the vehicle’s gear shift with her scarf and struck her when she tried to escape. On I-95 near Arundel, she succeeded in breaking the vehicle’s key off in the ignition, forcing Pilson to pull over. The victim fled along the highway with Pilson initially following her before fleeing into the woods. Maine State Troopers were alerted to the incident by at least five concerned motorists who each called 911. Troopers later found Pilson with the aid of a K-9.
On December 12, 2019, three days before the kidnapping, Pilson had pleaded guilty in Waltham District Court to five charges, including kidnapping the same victim, for which he had been sentenced to time served and probation. A no-contact order was also imposed, prohibiting Pilson from contacting the victim. The federal jury found Pilson guilty of interstate violation of a protection order for violating the Massachusetts order.
Pilson faces up to life in prison and a fine of $250,000. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Safe Streets Task Force and the Maine State Police investigated the case.
If you or someone you know is experiencing domestic violence, help is available via the National Domestic Violence Hotline at 1-800-799-SAFE (7233), or via the Hotline’s website at https://www.thehotline.org/. Mainers experiencing domestic violence can also contact the Maine Coalition to End Domestic Violence (MCEDV) at 1-866-834-HELP (4357). The MCEDV website, https://www.mcedv.org/, also has information about member organizations all over the state.
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Federal Grand Jury Indicts Louisville Man for Bank Robbery and Possession of a Firearm by Convicted FelonRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned a five-count indictment on November 21, 2023, charging a Louisville man with three bank robberies, possession of a firearm during a bank robbery, and 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, Special Agent in Charge Rana Saoud of the Homeland Security Investigations (HSI) Nashville, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
According to the indictment, Corey D. Ware, 28, was charged with three bank robberies, possession of a firearm during a bank robbery, and possession of a firearm by a convicted felon. On September 16, 2022, Ware robbed two banks in Jefferson County. On September 22, 2022, Ware possessed a firearm and robbed another bank in Jefferson County. Ware possessed the firearm after having previously been convicted of the following felony offenses. On December 20, 2017, in Jefferson Circuit Court, Ware, was convicted of trafficking in a controlled substance, first degree (three counts), trafficking in a controlled substance, second degree, and trafficking in marijuana with a firearm.
The defendant made his initial court appearance yesterday, before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. Ware remains in federal custody pending trial. If convicted, he faces a mandatory minimum sentence of 5 years and a maximum sentence of 80 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by LMPD, FBI, and HSI with assistance from the ATF.
Assistant U.S. Attorney Mac Shannon is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts Hastings Resident for Distribution of MethamphetamineRead the Press Release
JOHNSTOWN, PA - A resident of Hastings, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of narcotics trafficking, United States Attorney Eric G. Olshan announced today.
The three-count Indictment named Penny Woodley, age 55.
According to the Indictment, the defendant possessed with the intent to distribute and distributed over 50 grams of methamphetamine on three separate dates.
The law provides for a minimum sentence of 10 years imprisonment and up to life, a fine of not more than $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Pennsylvania State Police, Pennsylvania Office of the Attorney General, Internal Revenue Services, Pittsburgh Bureau of Police, and Homeland Security Investigations.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Essex County Woman Charged with Stealing over $1 Million in Federal Retirement Benefits Intended for Deceased AuntRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman was arrested today for allegedly stealing over $1 million of federal benefits meant for her deceased aunt over a 25-year period, U.S. Attorney Philip R. Sellinger announced.
Janis Miller, 77, of South Orange, New Jersey, is charged by complaint with one count of wire fraud. She appeared today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In 1998, Miller’s aunt died. Unaware of her death, the Social Security Administration (SSA) and the U.S. Office of Personnel Management (OPM) paid approximately $1.01 million in retirement and survivor benefits to the bank account of Miller’s deceased aunt. By debit card, cash withdrawals, and forged checks made out to a company Miller controlled, Miller unlawfully disbursed virtually all of those embezzled funds. In 2022, to continue her unlawful receipt of the benefits, Miller, in a telephone conversation with an SSA employee, impersonated her deceased aunt and provided her aunt’s approximate birthdate. OPM and SSA discovered the fraud and discontinued the benefits in 2023, around 25 years after Miller began stealing those benefits.
The count of wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum fine of the greatest of either $250,000 or twice the pecuniary gain or loss caused by the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott, and U.S. Office of Personnel Management, Office of the Inspector General, under the direction of Special Agent in Charge Paul Kimball, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Sam Thypin-Bermeo of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
miller.complaint.pdfDurant Man Pleads Guilty to Bank RobberyRead the Press Release
Jackson, Miss. – A Durant man pleaded guilty to bank robbery, announced U.S. Attorney Todd W. Gee and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents and statements made in court, Curtis Lee Williams, 21, robbed the BankPlus branch in Durant on July 7, 2022, wearing all black, sunglasses, a wig, and no shoes. The same day, one of the $50 bait bills from the bank was used to purchase three firearms from a pawn shop in Kosciusko. An arrest was made in Durant later that day following a traffic stop.
Williams was indicted by a federal grand jury on April 4, 2023.
Williams is scheduled to be sentenced on March 29, 2024. He faces a maximum sentence of 20 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Federal Bureau of Investigation and the Durant Police Department.
Assistant U.S. Attorney Kimberly T. Purdie is prosecuting the case.
Drug Trafficking Ring Distributing Fentanyl and Methamphetamine Dismantled, Six Charged with Drug and Gun CrimesRead the Press Release
CHARLOTTE, N.C. – A superseding criminal indictment has been unsealed in U.S. District Court, charging six members of a drug trafficking ring with conspiracy to traffic fentanyl and methamphetamine and related drug or gun charges, announced Dena J. King U.S. Attorney for the Western District of North Carolina. Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Marshals Service deputies, and officers with the Hickory Police Department (HPD) arrested four defendants earlier this week. Two defendants were already in custody.
“My Office has an important mission: to ensure the safety of our communities. We do that when we confront drug trafficking and drug-fueled violence head on, with the full support of our law enforcement partners,” said U.S. Attorney King.
“Drug trafficking fuels a great deal of the gun violence in our communities,” said Bennie Mims, Special Agent in Charge of the ATF in Charlotte. “That’s why these collaborative efforts are so critical. When we can disrupt drug trafficking networks, we’re not just removing drugs from our streets. We’re recovering firearms and preventing violent gun crime.”
“We are grateful for the continued partnerships that produce these kinds of impactful results in our community. Working together has proven to be one of the most effective ways to make a real difference in reducing these kinds of drug and gun crimes,” said Chief Reed Baer of the Hickory Police Department.
The indictment is the result of a 10-month joint ATF and HPD investigation aimed at reducing drug distribution and drug-induced criminal activity in Catawba County and surrounding areas, including in Mecklenburg County. According to allegations in the indictment, filed court documents, and court proceedings, the drug trafficking ring operated out of Hickory, North Carolina, and distributed large quantities of fentanyl and methamphetamine in the area. To identify the drug conspirators and their operations, ATF agents and HPD officers utilized controlled drug purchases, conducted physical surveillance, and executed search warrants. Over the course of the investigation, law enforcement determined that members of the drug ring allegedly used several residences either as “stash houses” to store drugs and/or guns, or to conduct drug sales and other drug trafficking activities. One of the alleged stash houses was located two blocks from the federal courthouse in Charlotte.
During the investigation, law enforcement seized more than 4.5 kilograms of fentanyl, over 3.5 kilograms of methamphetamine, and more than 200 pounds of marijuana. Law enforcement also seized seven firearms used by some of the traffickers to support their drug distribution, including an AR-15 rifle and a privately made firearm or “ghost gun,” and ammunition.
The superseding indictment charges the six defendants with conspiracy to distribute and to possess with intent to distribute fentanyl and methamphetamine. Their names and additional charges are:
- Ashton Durrell Farley, also known as Hood, 35, of Hickory, is charged with multiple counts of possession with intent to distribute fentanyl and methamphetamine and distribution of fentanyl and methamphetamine, possession of firearms in furtherance of drug trafficking, and possession of a firearm by a convicted felon. Farley allegedly engaged in the charged criminal activity while he was under federal and state court supervision for prior drug-related offenses.
- Dustin Eric Wilson, 36, of Charlotte, is charged with multiple counts of distribution of methamphetamine, possession with intent to distribute and distribution of fentanyl, and possession of firearms in furtherance of drug trafficking.
- Whitney Necole Bryant, 30, of Hickory, is charged with distribution of fentanyl and methamphetamine and possession with intent to distribute fentanyl.
- Tonya Quantina Jackson, also known as New York, 42, of Hickory, is charged with possession with intent to distribute fentanyl and methamphetamine and distribution of fentanyl.
- Harold Marquis Wilfong, 36, of Hickory, is charged with distribution of fentanyl.
- Thomas Eugene Ikard, 44, of Lenoir, N.C., is charged with distribution of methamphetamine.
The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making the announcement U.S. Attorney King commended the ATF, HPD, and the Catawba County Sheriff's Office for their investigative efforts and thanked the U.S. Marshals Service for their invaluable assistance with the arrests.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
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.
Drug Trafficker Sentenced to Five Years in Federal Prison for Unlawful Possession of FirearmsRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Ryan Goodrich, 38, of Athens, Vermont, was sentenced in the United States District Court in Rutland on December 20, 2023, following his guilty plea to being a prohibited person in possession of firearms. Chief United States District Judge Geoffrey W. Crawford sentenced Goodrich to 60 months’ imprisonment to be followed by a three-year term of supervised release.
According to court records, Vermont Game Wardens began an investigation of Goodrich in late winter of 2022 for violations of fish and wildlife regulations. During their investigation, the wardens obtained a search warrant for Goodrich’s Facebook account, which revealed a photograph of a short-barrel shotgun. The messages within the account revealed Goodrich had discharged the weapon and likely possessed it at his residence. The wardens coordinated with agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives to execute a search warrant at Goodrich’s residence on March 3, 2022. During the search, agents located the short-barrel shotgun (which was loaded), multiple additional shotguns, multiple rifles (including an AR-style rifle), 2,978 rounds of ammunition, $6,000 in U.S. Currency, and 880 bags of heroin. The short-barrel shotgun was subject to registration with the National Firearms Act however, it was not properly recorded. Documents in Ryan Goodrich’s name were also found in the camper, although he was not there when the search warrant was executed.
After the warrant was executed, a federal grand jury returned an indictment on March 10, 2022. Agents attempted to locate Goodrich in and around Athens, and in doing so, encouraged people who knew him to have Goodrich turn himself in to law enforcement. Goodrich did not do so. On April 9, 2022, Keene, New Hampshire Police located Goodrich at a hotel in Keene. Officers obtained a search warrant for the hotel room, but Goodrich was not inside when it was executed. Agents found evidence of Goodrich’s prior presence, including personal paperwork in a backpack. On April 19, 2022, law enforcement learned that Goodrich was attempting to obtain transportation to Texas. Goodrich was subsequently located and apprehended at a hotel in Deerfield, Massachusetts. Following Goodrich’s arrest, investigators obtained a federal search warrant for certain social media information used by Goodrich. When law enforcement executed that warrant, they found various messages that demonstrated that in March 2022, Goodrich was involved in drug trafficking.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of Vermont Department of Fish and Wildlife, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. He also thanked the Keene, New Hampshire Police Department, the Massachusetts State Police, the Deerfield, Massachusetts Police Department, and the Greenfield, Massachusetts Police Department for their assistance in locating and apprehending Goodrich.
Colonel Justin Stedman from the Department of Fish and Wildlife, Division of Warden Service stated: “The Vermont Warden Service is grateful to our federal partners at the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office for being so willing to assist us in building and prosecuting this case. It is a shining example of what law enforcement can accomplish when we work together with the goal of seeing justice served.”
Assistant United States Attorneys Jonathan Ophardt, Paul Van de Graaf, and Zachary Stendig investigated and prosecuted the case. Goodrich is represented by Assistant Federal Public Defender Mary Nerino.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
Dover Man Indicted for Threatening to Kill Three Presidential CandidatesRead the Press Release
CONCORD – A Dover man has been indicted in connection with sending threatening text messages to three presidential candidates, U.S. Attorney Jane E. Young announces.
Tyler Anderson, 30, was charged with three counts of transmitting in interstate commerce a threat to injure the person of another. Anderson was arrested on December 9, 2023, and he made an initial appearance in federal court on December 11, 2023. On December 14, 2023, the Court released him on conditions.
According to the charging documents, Anderson sent a series of threatening text messages to three separate presidential campaigns going back to November 2023. On November 22, 2023, Anderson threatened to “impale” and “disembowel” one candidate. On December 6, 2023, Anderson threatened a second candidate in a series of text messages, including that he would “blow” the head off of the candidate and conduct a “mass shooting.” On December 8, 2023, Anderson threatened via text message that he would “blow” the “brains out” of a third candidate and “kill everyone” who would attend a then-upcoming campaign event.
Each charge provides for a sentence of up to five years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Dover Police Department and the Portsmouth Police Departments. Assistant U.S. Attorney Charles 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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Connecticut Man Sentenced to 144 Months in Prison for Attempting to Travel to Fight for ISISRead the Press Release
Kevin Iman McCormick, 30, of Hamden, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 144 months of in prison followed by a lifetime of supervised release, for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
According to court documents and statements made in court, between August and October 2019, McCormick made several statements to others expressing a desire to travel to Syria and to fight for ISIS. In August 2019, McCormick stated to members of a Muslim community center that “we should support ISIS” and “jihad is the way to go.” In another conversation in October 2019, McCormick stated, “I gotta fight bro, because those people, Abu Masa and ISIL, they fought for me bro, I know it, I can feel it, in my heart. So it’s my time to fight . . . It just is what it is bro, it’s just my – it’s just my time to go bro.” When McCormick was asked to elaborate on where he would like to travel, McCormick responded, “I don’t know, I don’t know bro – it’s gotta be like Syria. Where ISIL is at….whichever place is easiest, whatever place I can get there the fastest, the quickest, the easiest, and where I can have a rifle and I can have some people bro. That’s what I need, I need a rifle and I need some people, I need Islamic law, I need, that’s what I need, because if I have these things, it’s gonna to be very hard to kill me.”
On Oct. 12, 2019, McCormick attempted to board a flight from Connecticut to Jamaica but was prevented by the Department of Homeland Security. McCormick subsequently told an individual that he wanted to travel to Jamaica, and then onward to Syria to join ISIS. He also indicated that he wanted to acquire weapons.
On Oct. 19, 2019, McCormick made a video during which he pledged allegiance to ISIS and its then-leader, Abu Bakr Al-Baghdadi. Also on that date, he purchased a plane ticket from Toronto, Canada, to Amman, Jordan. On Oct. 21, 2019, McCormick was arrested after he traveled to a small private airport in Connecticut where he expected to board a plane that would fly him to Canada.
McCormick has been detained since his arrest. On Jan. 12, he pleaded guilty to attempting to provide material support to a designated foreign terrorist organization.
U.S. Attorney Vanessa Roberts Avery for the District of Connecticut, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, and Special Agent in Charge Robert Fuller of the FBI New Haven Field Office made the announcement.
This FBI’s Joint Terrorism Task Force (JTTF) investigated the case with the assistance of the Transportation Security Administration (TSA).
The FBI’s JTTF includes participants from Homeland Security Investigations, IRS – Criminal Investigation Division, Naval Criminal Investigative Service, U.S. Citizenship and Immigration Services, Connecticut State Police, Connecticut Department of Correction, Norwich Police Department, Hartford Police Department, Stamford Police Department, Town of Groton Police Department, Yale Police Department, and New York Police Department.
Assistant U.S. Attorneys Neeraj Patel and Peter Jongbloed for the District of Connecticut, and Trial Attorneys Justin Sher and John Cella of the National Security Division’s Counterterrorism Section prosecuted the case.
Connecticut Man Sentenced for Receiving over $919,000 in Bribes from ContractorsRead the Press Release
BOSTON – A Connecticut man who held positions involving facility maintenance at three collegiate institutions was sentenced yesterday for receiving $919,066 of bribes in exchange for directing contracts to favored contractors.
Floyd Young, 53, of Shelton, Conn., was sentenced by U.S. District Court Judge Mark G. Mastroianni to eight months in prison. Young was also ordered to pay restitution of $919,066 to the collegiate institutions and forfeiture of $919,066. In August 2020, Young pleaded guilty to one count of conspiracy and three counts of bribery concerning programs receiving federal funds.
Young held positions involving facility maintenance at three collegiate institutions, including American International College, located in Springfield. Young steered contracts for construction, repair, maintenance, and other work for the collegiate institutions to favored contractors who paid him bribes, typically in the amount of 15% of the contract. The contractors inflated the amount of the invoices submitted to the collegiate institutions in order to be repaid the cost of the bribe payment made to Young. In addition, as contractors received payments for work done at the collegiate institutions, they paid Young bribes on a periodic basis. On occasion, Young and the contractors arranged for no-work invoices to be submitted to the collegiate institutions and then split the payment.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office prosecuted the case.
Christian County Woman Sentenced to over 11 Years in Federal Prison for Distributing Methamphetamine and Violating Supervised ReleaseRead the Press Release
Paducah, KY – A Christian County, Kentucky, woman was sentenced yesterday to 10 years in federal prison for distributing methamphetamine, followed by an additional 1 year and 6 months in prison for violating a previous term of federal supervised release.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Hopkinsville Police Chief Jason Newby made the announcement.
According to court documents, Ahgeana Bailey, 29, of Hopkinsville, was sentenced to 10 years in prison, followed by 5 years of supervised release, for one count of distributing over 50 grams of methamphetamine. At the time she committed this offense, Bailey was on federal supervised release for a 2019 conviction for being a felon in possession of a firearm. She was sentenced to an additional 1 year and 6 months in prison for violating the terms of her supervised release.
There is no parole in the federal system.
The case was investigated by the DEA Paducah Post of Duty and the Hopkinsville Police Department.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Central Coast Man Previously Charged in Bribery Scheme Faces New Federal Charges of Defrauding Investors in Real Estate DealRead the Press Release
LOS ANGELES – An executive at a San Luis Obispo-based real estate development company who was previously charged with paying a county supervisor nearly $100,000 in bribes has been named in a superseding indictment that alleges a scheme to defraud investors in a Texas real estate project, the Justice Department announced today.
Ryan Wright, 37, a.k.a. “Ryan Petetit,” of Grover Beach, was named in a superseding indictment returned by a federal grand jury Wednesday afternoon. The new indictment adds 14 counts of wire fraud, three counts of attempted bank fraud and one count of access device fraud. The initial three-count indictment in this case, which was filed in October 30, alleged that Wright paid bribes and engaged in a cover-up.
There is a May 14, 2024 trial date scheduled in this case.
The fraud scheme alleged in the superseding indictment relates to a proposal to develop luxury homes in Dripping Springs, Texas. Over the course of two years – from October 2021 through October 2023, when Wright knew he was under investigation in the alleged corruption scheme – Wright allegedly solicited funds for the real estate development and diverted investors’ money to pay for criminal defense attorneys retained in connection with the bribery investigation, as well as for personal expenses, including a luxury condominium in Beverly Hills.
The indictment alleges that Wright continued to solicit investor funds even after the real estate deal collapsed in August 2022. The total amount raise from investors was approximately $2 million.
Wright is also charged with fraudulently seeking over $24 million in financing for the real estate deal after the project fell apart, which included causing an account to be opened in the company’s name and temporarily inflating it with funds not intended for the project in order to deceive the lender into believing the company had sufficient cash to close on the loan.
The indictment goes on to alleges that Wright fraudulently obtained credit in 2023 by using a business associate’s credit rating to obtain access devices (credit cards). Wright fraudulently accessed approximately $450,000, some of which was spend on “Las Vegas hotel rooms, sporting events, plastic surgery, and payments to criminal defense attorneys retained in connection with the government’s federal corruption investigation,” the indictment states.
The corruption and obstruction-related charges in the initial indictment remain in the superseding indictment. Those charges relate to allegations that Wright and his company paid money and gifts totaling more than $95,000 to a San Luis Obispo County supervisor who advocated for Wright’s real estate development company’s projects and prospective projects with City of San Luis Obispo officials, and who also voted for Wright’s company’s projects while on the San Luis Obispo County Board of Supervisors. The indictment further alleges that Wright took efforts to obstruct the federal investigation into these bribery allegations, including causing his company to produce a falsified business record in response to a federal grand jury subpoena.
Wright is currently in custody after being ordered detained after his arrest in late October. No date has been scheduled yet for his arraignment on the superseding indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The corruption conspiracy count carries a statutory maximum sentence of five years in federal prison, the obstruction of justice count has a maximum sentence of 10 years, the falsification of records count carries up to 20 years, the wire fraud counts have a maximum statutory sentence of 20 years, the attempted bank fraud charges carry a maximum sentence of 30 years, and the maximum sentence for the access device fraud charges is 10 years.
The FBI and IRS Criminal Investigation are investigating this matter.
Assistant United States Attorneys Daniel J. O’Brien and Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section are prosecuting this case.
Carjacking Leads to 9 1/2 Years in Prison for St. Louis ManRead the Press Release
ST. LOUIS – U.S. District Judge Catherine E. Perry on Thursday sentenced a St. Louis, Missouri man who stole a car at gunpoint in 2022 to nine and one-half years in prison.
Demetrius Nettles, 49, pleaded guilty in September to one count of carjacking and one count of possession of a firearm in furtherance of a crime of violence. Nettles admitted approaching a woman in the 4600 block of Dewey Avenue, in the Dutchtown neighborhood, on May 15, 2022. Nettles demanded the victim’s keys before pointing a revolver at her stomach. Nettles then drove off in the woman’s 2020 Hyundai Elantra. Officers with the St. Louis Metropolitan Police Department spotted the car on Kingshighway Boulevard at Natural Bridge Avenue and conducted a traffic stop. They then arrested Nettles, who had a loaded Taurus .38 Special revolver in his waistband.
In a letter to Judge Perry, the victim said she was packing her car to go to a picnic and planned to offer Nettles a sandwich, a bottle of water and a job before noticing the gun pointed at her stomach.
The St. Louis Metropolitan Police Department and the FBI investigated the case. Assistant U.S. Attorney Linda Lane prosecuted the case.
California man sentenced to 17 years in prison for sexually exploiting minor, possessing child pornographyRead the Press Release
COLUMBUS, Ohio – A California man who traveled to Ohio to engage in sex acts with a 14-year-old he met online was sentenced in U.S. District Court here today to 204 months in prison.
Kameron E. Tolbert, 28, of Suisin City, California, pleaded guilty in August 2023 to sexually exploiting a minor and possessing child pornography.
According to court documents, on Aug. 22, 2022, law enforcement was dispatched to a home in Jackson, Ohio after Tolbert had jumped through the minor victim’s bedroom window when he was discovered in her bedroom by family members. Tolbert fled on foot and then by vehicle.
The next day, the principal at the victim’s local high school identified Tolbert’s vehicle in the school parking lot and notified a school resource officer who detained Tolbert at the school. Tolbert admitting being there at the school to see the minor victim.
Tolbert had first met the victim online six months prior and began chatting with her via different social media applications, including Discord. He admitted to flying from Sacramento, California, to Columbus, Ohio, on Aug. 20, 2022, to meet the victim at her home in Jackson. Tolbert parked nearby her residence and snuck into the victim’s home through her bedroom window to avoid security cameras at the front door. He admitted to engaging in sexual intercourse with her at her home on August 21 and August 22.
A forensic examination of Tolbert’s digital devices revealed more than 500 images and 1,100 videos depicting child sexual abuse of both prepubescent and pubescent minors. Images and videos of the 14-year-old minor victim engaged in sex acts with Tolbert were also recovered.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati division; and Jackson County Sheriff Tedd Frazier announced the sentence imposed today by Chief U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Emily Czerniejewski and Jennifer M. Rausch are representing the United States in this case.
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California Drug Dealer Who Shipped Methamphetamine by Mail to Iowa Sentenced to over Two Decades in Federal PrisonRead the Press Release
A man who absconded from state court parole in Iowa for a drug trafficking offense was sentenced on December 20, 2023, to over 20 years in federal prison for participating in a methamphetamine conspiracy.
Todd Alan Skalberg, age 57, from Osmond, Nebraska, received the prison term after a June 30, 2023 guilty plea to one count of conspiracy to distribute a controlled substance after having previously been convicted of a serious drug felony.
Skalberg, who was living in California, sent multiple pounds of “ice” methamphetamine by mail to Waterloo, Iowa, to his co-defendant, Justin Lee Hanawalt, over the course of a few months. Skalberg has three prior convictions for drug trafficking offenses.
Skalberg was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Skalberg was sentenced to 262 months’ imprisonment. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
Skalberg is being held in the United States Marshal’s custody until he can be transported to a federal prison. Justin Lee Hanawalt was previously sentenced to 240 months in federal prison.
The case was prosecuted by Assistant United States Attorney Nicole L. Nagin, and it was investigated by the United States Postal Inspection Service, the Waterloo Police Department, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 22-CR- 2065.
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Business owner sentenced on tax chargeRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Julie Dotton, 51, of Orchard Park, NY, who was convicted of willful failure to truthfully account for and pay over employment taxes, was sentenced four years’ probation, and ordered to perform 100 hours of community service by U.S. District Judge John L. Sinatra, Jr. Dotton was also ordered to pay restitution of $1,585,538 to the IRS and $117,277 to the SBA.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Dotton was the President, CEO, and majority shareholder of Applied Sciences Group (ASG), a technology business that largely developed software. She was also the founding partner of the partnership KRP Holdings (KRP). By law, businesses must account for income tax, social security tax, and a hospital insurance (Medicare) tax in the wages of individual employees, equal to a percentage of the wages earned by the employee. These taxes are commonly referred to as “trust fund taxes” because employers hold these taxes in trust for the government. For all of 2018 and three quarters of 2019, Dotton failed to pay over the trust fund taxes to the IRS on behalf of the employees of ASG and KRP, resulting in a loss of approximately $1,100,837 to IRS. Dotton also admitted that she obtained a Paycheck Protection Program (PPP) loan from the federal government in the amount of $117,277, to which she was not entitled.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Thomas Fattorusso.
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Buffalo man sentenced for his role in narcotics conspiracy that led to an overdose deathRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Steven Gonzalez a/k/a Steven Hernandez, a/k/a Steve, a/k/a Stevie, a/k/a Unc, 47, of Buffalo, NY, who was convicted of narcotics conspiracy, was sentenced to serve 188 months in prison by U.S. District Judge Richard J. Arcara. Gonzalez was also ordered to pay restitution totaling $7,058.60 to the family of overdose victim L.K.
Assistant U.S. Attorney Joshua A. Violanti, who handled the case stated that between June 2019, and September 2019, Gonzalez conspired with others to sell heroin, fentanyl, and acetyl fentanyl. During the conspiracy, Gonzalez sold quantities of heroin and fentanyl for profit, with the assistance of a known co-conspirator identified CC-1. CC-1 arranged drug deals and drove Gonzalez to drug deals, and Gonzalez provided CC-1 with heroin/fentanyl for CC-1’s personal use. On July 17, 2019, CC-1 made a controlled call to Gonzalez regarding CC-1’s sworn testimony related to the overdose of a person identified as L.K. CC-1 told Gonzalez that CC-1 believed that investigators did not believe CC-1’s false story accusing a source of supply named “Freddy.” Gonzalez told CC-1 to “stick to the same story that you’ve been telling them.” On September 24, 2019, investigators executed a search warrant at West Avenue residence, during which they recovered approximately 19 grams of heroin from Gonzalez’s possession. Gonzalez utilized the West Avenue residence to facilitate his drug trafficking activities.
In April 2022, Gonzalez was indicted by a federal grand jury on charges of conspiracy to commit sex trafficking, sex trafficking of a minor, sex trafficking by coercion, and drug distribution charges. Those charges remain pending.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the New York State Police, under the direction of Major Eugene Staniszewski, and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
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Brooklyn Park Man Pleads Guilty to $2.3M Romance Fraud SchemeRead the Press Release
ST PAUL, Minn. – A Brooklyn Park man has pleaded guilty to facilitating a national romance fraud scheme, announced U.S. Attorney Andrew M. Luger.
According to court documents, beginning in May 2018 through June 2022, Dodzi Kwame Kordorwu, 37, helped facilitate an online romance fraud scheme that targeted primarily elderly victims and lured them into sending money under false pretenses. The scheme relied on perpetrators impersonating a real or plausible but fictitious person, such as a senior U.S. diplomat or military official, that contacted the victims through online social media applications. The scheme participants then sought to forge a romantic connection with the victims. If successful, the scheme participants would then ask the victims for money purportedly to assist the false persona with some problem or need. Occasionally, the scheme participants would even introduce the victims to a purported third-party intermediary who would corroborate the false persona’s story and assist in defrauding the victims. The victims eventually were directed to send large sums of money by mail or other commercial means to a specified name and address.
In total, Kordorwu received over 90 victim packages containing approximately $2,231,998 in fraud proceeds throughout the scheme. Kordorwu kept some of the proceeds for his personal benefit and disbursed the remainder of the proceeds to other scheme participants.
Kordorwu pleaded guilty yesterday to one count of mail fraud in U.S. District Court before Judge Eric C. Tostrud. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the FBI, the U.S. Postal Inspection Service, and a Digital Forensic Investigator with Hennepin County.
Assistant U.S. Attorneys Jordan L. Sing and Robert M. Lewis are prosecuting the case.
Aryan Brotherhood Prison Gang Member Pleads Guilty to Murder in Aid of RacketeeringRead the Press Release
SACRAMENTO, Calif. — Brant Daniel, 49, of Sacramento, pleaded guilty Wednesday to murder in aid of racketeering as part of a long-running investigation into the California Aryan Brotherhood prison gang, U.S. Attorney Phillip A. Talbert announced.
U.S. District Judge Kimberly J. Mueller immediately sentenced Daniel after his guilty plea to the mandatory sentence of a life term in federal prison.
“This guilty plea and sentence represents a significant setback for one of California’s most notorious white supremacist prison gangs,” said U.S. Attorney Talbert. “We will continue to use every law enforcement tool to protect the communities plagued by the violence and criminal activities of the Aryan Brotherhood.”
“The Aryan Brotherhood hides behind prison walls while they direct criminal activities and brutal crimes of violence. In this case, Brant Daniel murdered an individual in cold blood to maintain his status and prove allegiance to the prison gang,” said DEA Special Agent in Charge Brian Clark. “We will relentlessly pursue and prosecute those who commit such heinous acts from behind bars and beyond.”
“This is a great example of successful coordination among various agencies to ensure safety,” said CDCR Secretary Jeff Macomber. “I would like to express my appreciation to all the law enforcement agencies involved, and in particular, I commend the staff at California State Prison Sacramento for their dedication throughout the entire investigation.”
According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder, conspiracies to murder, and drug trafficking crimes. AB members allegedly oversaw a significant heroin and methamphetamine trafficking operation from their California prison cells using smuggled cellphones to direct drug trafficking activities, order murders, and oversee other criminal activities inside and outside of the prisons.
As part of his guilty plea, Daniel admitted that he murdered an inmate at Salinas Valley Prison on Oct. 29, 2016, as part of an AB-related killing. In particular, Daniel admitted that he committed the murder because the victim failed to carry out a hit assigned by an AB member and then lost valuable drugs belonging to Daniel and, by extension, the AB. In his plea, Daniel admitted that he willfully, deliberately, and with premeditation, murdered the victim in order to maintain his status within the AB.
This case was the product of an investigation by the Drug Enforcement Administration with substantial investigative assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office. Assistant U.S. Attorneys Jason Hitt, Ross Pearson, and David Spencer are prosecuting the case.
Five remaining defendants—Ronald Yandell, Billy Sylvester, Danny Troxell, Pat Brady, and Jason Corbett—are scheduled for trial in February 2024.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF) program. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
daniel_plea_agreement.pdfArizona Man Sentenced to 46 Months in Prison for Travel with Intent to Engage in Illicit Sexual ConductRead 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 Jonathan John James was sentenced to 46 months in prison. James, 59, of Tsaile, Arizona, pleaded guilty to travel with intent to engage in illicit sexual conduct on April 5, 2023.
According to court documents, on April 20, 2022, James followed a child as she shopped with her grandfather at a Home Depot in Gallup, New Mexico. When her grandfather went to the bathroom, James approached the child, told her she was attractive and gave her his telephone number, written on a wet wipe package, in hopes they would communicate. The child told her grandfather what had occurred and provided a physical description of James.
Afterwards, the grandfather began communicating with James. He told James his name was “Simone,” he was 11 years old, and would turn 12 years old next week. The communication became sexual in nature and James shared he did not care that “Simone” was only 11 years old. After about a week, the grandfather called the FBI and consented to a search of his phone and for them to assume the identity of “Simone” and continue communicating with James.
James’s communications with the FBI continued to be sexual in nature. James sent adult pornography – approximately 25 images, including an image that is likely of his own penis - and requested to meet up so he could perform sexual acts on “Simone.” James shared he lived near Tsaile, Arizona, but could come to Gallup, New Mexico to meet with “Simone.” James stated the graphic sexual things he planned to do to “Simone” when they met up. They formed a plan to meet on May 5, 2022, and “Simone” requested that he bring a Dr. Pepper for her when they met in the park, and he replied he would bring her a bracelet too.
When James arrived at the meeting time in the park, the FBI arrested him. James possessed a bracelet and a Dr. Pepper. James waived his rights and admitted he was at the park because he drove across state lines to engage in sexual activities with a 12-year-old named “Simone.” He also confirmed his cell phone number. As part of the search of his vehicle law enforcement found two types of condoms and a USB thumb drive.
Upon his release from prison, James will be subject 5 years of supervised release and must register as a sex offender upon his release from prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the FBI Child Exploitation Human Trafficking Task Force. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case as part of Project Safe Childhood (PSC).
PSC is 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/.
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Albuquerque Man Charged with Coercion and Enticement of MinorsRead 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’s Albuquerque Field Office, announced that Adrian Puentes appeared in federal court on an indictment charging him with 2 counts of coercion and enticement of a minor. Puentes, 24, of Albuquerque, will remain on conditions of release pending trial, which has not been scheduled.
According to the indictment, between June 29, 2021, and December 1, 2021, Puentes coerced Jane Doe 1, a minor, to engage in sexual activity. Also, between October 19, 2021, and March 23, 2023, Puentes coerced Jane Doe 2, a minor, to engage in sexual activity.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Puentes faces a minimum of 10 years to life in prison.
The FBI Albuquerque Field Office investigated this case with the assistance of the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Jesse Pecoraro is prosecuting the case.
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Albuquerque Investment Broker Sentenced to 2 Years in Prison for Mail and Wire Fraud and Failure to File Tax ReturnsRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Albert A. Childress, Special Agent in Charge, Internal Revenue Service – Criminal Investigation, announced today that Richard Kessler was sentenced to 24 months of imprisonment for the fraud charges and 12 months for the tax charges, to run concurrently. Kessler, 52, of Albuquerque, pleaded guilty on April 18, 2022, to one count each of mail fraud and wire fraud and four counts of failure to file tax returns.
According to court documents, Kessler was self-employed as a financial advisor and investment broker doing business as Guardian Group Investments LLC. In that capacity, Kessler earned commissions by managing retirement accounts for small businesses. Those businesses included an oil and gas company in Farmington, New Mexico. Kessler occasionally made presentations to employees of that business regarding retirement planning and financial investments. He used those interactions—and the private conversations that followed—to convince several of that business’s workers to take funds out of their established retirement accounts and entrust their retirement funds to him. Between 2013 to 2016, several investors entrusted Kessler with retirement funds totaling more than $161,000. Kessler represented to those investors that he would place their retirement funds in qualified investment accounts. Instead, Kessler deposited investors’ retirement funds into his company’s business savings account. From there, Kessler converted and expended those funds through transfers to personal bank account, cashier’s checks that he would use for personal expenses, and cash withdrawals. Kessler also used a portion of investors’ retirement funds to make payments to earlier investors to replace funds that he had previously misappropriated.
In addition to defrauding investors and converting their retirement funds his personal purpose and to perpetuate his Ponzi scheme, Kessler also failed to file federal tax returns or pay federal income tax for tax years 2014 through 2017. During that time period, Kessler earned commissions from legitimate investment management, as well as the illicit income from his frauds. Kessler’s income over these four years—legitimate and illegitimate—came to $446,925. This resulted in a tax liability of $82,627. Kessler knew he was required to pay taxes on his income from his company, having done it from the company’s inception in 2008 through 2011.
In his plea agreement, Kessler admitted that he devised and executed this scheme with the intent to defraud the investors.
Upon his release from prison, Kessler will be subject to 3 years of supervised release with the special condition that he make full restitution to the victims of his fraudulent scheme and pay the income taxes owed to the United States. At the time of his sentencing, Kessler had prepaid $82,500 of the $97,481.35 owed to his victims.
Internal Revenue Service – Criminal Investigation investigated this case. Assistant U.S. Attorney Timothy S. Vasquez is prosecuting the case.
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20 December 2023
Woman Convicted of $7M COVID-19 Relief FraudRead the Press Release
A federal jury in the Northern District of Georgia convicted a Georgia attorney and former City of Atlanta police officer yesterday of fraudulently obtaining over $7 million in loans under the Paycheck Protection Program (PPP).
According to court documents and evidence presented at trial, Shelitha Robertson, 62, of Atlanta, conspired to submit PPP loan applications on behalf of four businesses she owned. The loan applications falsely inflated the number of employees and average monthly payroll for each of the four businesses, inducing larger PPP loans than Robertson could legitimately obtain. Robertson and a co-conspirator also caused the submission of false tax documents to support the false statements in each loan application. Robertson used the loan proceeds to purchase luxury items, including a 10-carat diamond ring, and to transfer funds to family members and her co-conspirator.
The jury convicted Robertson of one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of money laundering. She is scheduled to be sentenced on April 11, 2024, and faces a maximum penalty of 20 years in prison for each count of conspiracy to commit wire fraud and wire fraud, and a maximum penalty of 10 years in prison for money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Robertson is the second defendant to be convicted as part of the Justice Department’s prosecution of an approximately $15 million PPP fraud conspiracy. Robertson’s co-conspirator pleaded guilty prior to trial.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia, Inspector General Hannibal “Mike” Ware of the U.S. Small Business Administration Office of Inspector General (SBA-OIG), Acting Inspector General Tyler Smith of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), and Acting Inspector General Heather Hill of the U.S. Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FDIC-OIG, and TIGTA investigated the case.
Trial Attorney Ariel Glasner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Bernita Malloy for the Northern District of Georgia are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.
In May 2021 the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Wisconsin Man Sentenced to Year in Prison for Causing the Creation of an Obscene Animal Crush VideoRead the Press Release
MADISON, WIS. – A Soldiers Grove, Wisconsin man was sentenced today for knowingly causing the creation, sale, and distribution of an obscene animal crush video, in violation of the Preventing Animal Cruelty and Torture Act (“PACT Act”). U.S. District Judge William M. Conley sentenced Kenneth Herrera, 40, to a year and a day in prison and a $5,000 fine. Herrera will serve three years of supervised release following the prison sentence.
The PACT Act makes it illegal to create or distribute depictions of “animal crushing” that will be sold or distributed internationally or between states. Animal crushing includes burning, suffocating, impaling, or causing the serious bodily injury of animals. Herrera pleaded guilty to this charge on September 15, 2023.
As part of an investigation titled “Operation Dry Eyes,” agents from the U.S. Fish and Wildlife Service (USFWS) and Federal Bureau of Investigation learned about an individual, later identified as Herrera, who ordered videos depicting animal crushing from an international videographer. Specifically, USFWS and FBI agents uncovered evidence that, in December 2021, Herrera sent money to a videographer in Indonesia in exchange for a video of a monkey being physically abused. Herrera sent detailed instructions to the videographer asking that the monkey be physically abused in specific violent ways. The videographer complied with these requests and sent the video to Herrera via an encrypted messaging application.
In sentencing Herrera, Judge Conley remarked on the abhorrent nature of the video and pointed out that Herrera did not just view the video but played a role in its production.
“Video recordings of animal torture are cruel, inhumane, and illegal,” said U.S. Attorney Timothy M. O’Shea. “Evidence shows that animal torture can be a precursor to other violent crimes. Our office will work with law enforcement, domestically and internationally, to investigate and prosecute all crimes of this nature.”
“The primary mission of the U.S. Fish and Wildlife Service, and our specific role in the Office of Law Enforcement, is to protect all wildlife from being unlawfully commercialized, in whatever form we find it. The heinous crimes against wildlife that are centered in this investigation are an extreme example of that commitment. The success of this case is a direct result of our partnership with the Federal Bureau of Investigation,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service, Office of Law Enforcement.
“The FBI stands resolute in our dedication to working with our federal and international partners to address animal cruelty violations,” said Special Agent in Charge Michael E. Hensle. “We view the sentence handed down in this case under the Animal Crushing Statue not only as a measure of justice served, but also as a deterrent against future violations. We appreciate the opportunity to work with our partners at the U.S. Fish and Wildlife Service and the U.S. Attorney’s Office in the Western District of Wisconsin on this investigation and will continue to rigorously enforce the laws designed to prevent such heinous acts.”
The charge against Herrera was the result of an investigation conducted by the U.S. Fish and Wildlife Service and the Federal Bureau of Investigation. Assistant United States Attorney Chadwick M. Elgersma of the United States Attorney’s Office for the Western District of Wisconsin and Trial Attorney Mark T. Romley of the Justice Department’s Environmental Crimes Section prosecuted the case.
If you are aware of animal cruelty, please report it to law enforcement. You can also call the U.S. Fish and Wildlife Service at 1-844-FWS-TIPS or the FBI at 1-800-CALL-FBI.
Westford Man Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Mexican man residing in Westford was sentenced yesterday in federal court in Boston for unlawfully reentering the United States after deportation.
Pedro Romo-Gonzalez, 42, was sentenced today by U.S. District Court Judge Richard G. Stearns to time served (approximately six months in prison). On Oct. 19, 2023, Romo-Gonzalez pleaded guilty to unlawful reentry of a deported alien.
On at least eight separate occasions between April 1998 and July 2010, Romo-Gonzalez was removed from the United States or voluntarily returned to Mexico. After each removal, he illegally re-entered the United States without obtaining the appropriate permission to reenter. He was first encountered by federal authorities in April 1998 after he entered the United States via California without being admitted by an immigration officer. In December 2009, Romo-Gonzalez was convicted in Arizona state court of solicitation to commit smuggling. Most recently, on June 13, 2023, federal immigration authorities were notified of Romo-Gonzalez’s presence in Massachusetts after he was arrested on unrelated state charges.
Acting United States Attorney Joshua S. Levy; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Westford Police Chief Mark Chambers made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit prosecuted the case.
West Virginia Man Sentenced for Obstructing Tree of Life TrialRead the Press Release
WHEELING, WEST VIRGINIA – A West Virginia man was sentenced to prison today for his attempt to intimidate and influence jurors and witnesses in the Pittsburgh Tree of Life trial.
Hardy Carroll Lloyd, 45, of Follansbee, was sentenced to 78 months in prison.
According to court documents and statements made in court, Lloyd threatened jurors and witnesses involved in the recent trial for the Tree of Life shooter, Robert Bowers. Throughout the proceedings, Lloyd made threatening social media posts and website comments, and sent intimidating emails. Lloyd, a self-proclaimed white supremacist, admitted that he engaged in this conduct because of the actual or perceived ties to the Jewish community of the witnesses and the victims of Bowers.
On September 19, 2023, Lloyd entered a guilty plea to obstruction of the due administration of justice.
United States Attorney William Ihlenfeld made the announcement.
The Federal Bureau of Investigation investigated.
First Assistant U.S. Attorney Randolph Bernard and Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government.
Watertown Man Pleads Guilty to African Sports Ponzi SchemeRead the Press Release
BOSTON – A Watertown man pleaded guilty yesterday in federal court in Boston to defrauding investors who believed they were financing lucrative short-term sports ventures in Africa.
Adrian Kawuba, 33, pleaded guilty to four counts of wire fraud. United States District Court Judge William G. Young scheduled sentencing for March 14, 2024. Kawuba was arrested and charged in November 2022.
Kawuba told his victims that he would invest their money in short-term financing of sports ventures in Africa and elsewhere overseas and that he would personally guarantee their investments. Kawuba did not invest any of the victims’ funds. Instead, Kawuba used the money to pay for luxury goods and to pay purported returns to his investors – in some instances paying back a victim’s earlier investment with money that victims had just sent Kawuba for a new investment. The scheme involved at least 26 fraudulent deals, involving more than $2.3 million in victim funds.
The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of $250,000 or twice the monetary loss or gain, whichever is greater, restitution and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Watertown Police Department provided valuable assistance. Assistant U.S. Attorney Kriss Basil of Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Visiting Brazilian Attorney Sentenced to Prison in Insider TradingRead the Press Release
WASHINGTON – Romero Cabral Da Costa Neto (Costa), 33, of Rio de Janeiro, was sentenced today to two months in prison for unlawfully trading on material, nonpublic information, announced U.S. Attorney Matthew M. Graves and Acting Special Agent in Charge David Geist, of the FBI Washington Field Office’s Criminal and Cyber Division.
In addition to the prison term, U.S. District Judge Carl J. Nichols ordered Costa to forfeit $42,649.13 and a $100 fine. Costa pleaded guilty November 1 in U.S. District Court to a charge of insider trading.
Costa had been residing and working as a visiting attorney in Washington D.C., on a one-year J-1 Visa, at a global U.S. law firm (the Law Firm).
According to court documents, Costa began working at the Law Firm in September 2022. Until the FBI arrested him in August 2023, Costa used his position at the firm to access privileged and confidential client files on the Law Firm’s internal file management system and systematically perform keyword searches on this Law Firm database to explore client files in search of valuable material non-public information that he could exploit for financial gain.
Costa traded on material non-public information from law firm clients in advance of an $1.7 billion international BioPharma merger, a $5.7 billion oilfield merger, and a major drug trial announcement. In one of his trades, Costa pocketed a quick financial gain of $8,500; in another he reaped $42,649.13.
This case was investigated by the FBI’s Washington Field Office. It was prosecuted by Assistant U.S. Attorney Kevin Rosenberg, of the U.S. Attorney’s Office for the District of Columbia. In particular, valuable assistance was provided by the Philadelphia Regional Enforcement office of the SEC, which promptly identified the offense conduct, enabling swift enforcement action.
Vermont Man Pleads Guilty to Conspiracy to Distribute Crack CocaineRead the Press Release
CONCORD – A Vermont man pleaded guilty in federal court in Concord to conspiring to distribute a controlled substance in New Hampshire, U.S. Attorney Jane E. Young announces.
Lamar Carter, 32, pleaded guilty to one count of conspiracy to distribute a controlled substance, namely, cocaine base, also known as crack cocaine. U.S. District Court Judge Samantha Elliott scheduled sentencing for March 29, 2024. The defendant was indicted on August 29, 2022.
Carter was a leader of a drug distribution organization that obtained powder cocaine from New Jersey, “cooked” the cocaine to manufacture crack, and distributed the crack in and around Keene, New Hampshire. The organization had several employees who worked for Carter and conducted hand-to-hand drug transactions with customers. The group operated out of a local resident’s home, as well as several hotel rooms. During the investigation 364 grams of cocaine base and 2 handguns were seized.
The charging statute provides a sentence of no greater than 20 years in prison, at least three (3) years of supervised release, and a maximum fine of $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Homeland Security Investigations led the investigation. Valuable assistance was provided by the Keene Police Department.
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Vancouver Man Pleads Guilty to Role in Penny Stock FraudRead the Press Release
BOSTON – A Vancouver man pleaded guilty today in federal court in Boston to participating in a conspiracy to defraud investors in the Boston-based biomedical company Endeavor Power Corp.
Marco G. Babini, 62, pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud. U.S. District Court Judge Patti B. Saris scheduled sentencing for March 14, 2024. Babini was indicted by a federal grand jury in Boston in September 2015. He was arrested in Canada on April 21, 2020, at the request of the United States, and was extradited to the United States in July 2023.
Between approximately July 2012 and March 2013, Babini agreed to participate in a securities fraud scheme involving the planned sale of stock under concealed control during a promotional campaign, a course of conduct commonly known as a “pump-and-dump.” Babini had trading authority over brokerage accounts in Switzerland in the names of nominee entities that held a significant portion of the purportedly unrestricted shares of Endeavor. To raise money to fund a promotional campaign to generate investor demand for the shares, Babini agreed to execute pre-arranged trades with an undercover federal agent. The undercover agent was posing as an individual who had a corrupt network of stockbrokers willing to purchase and hold shares on behalf of their clients in exchange for monetary kickbacks. Babini agreed to execute pre-arranged trades with the goal of raising at least $200,000, and, in December 2012, Babini attempted to execute an initial test trade valued at $20,000.
Babini’s co-conspirators Edward Withrow III and Samuel Brown were previously charged with and convicted of federal offenses. In May 2018, Withrow pleaded guilty to one count of making false statements to the U.S. Securities & Exchange Commission (SEC). Brown separately pleaded guilty in July 2015 to one count of conspiracy to commit securities fraud and wire fraud and one count of making false statements to the SEC. Withrow and Brown were sentenced in December 2018 and January 2019, respectively.
The charge of conspiracy provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000, or twice the amount involved, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The U.S. Justice Department’s Office of International Affairs and the Department of Justice Canada’s International Assistance Group provided valuable assistance in securing the extradition of Babini. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Vancleave Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Gulfport, Miss. - A Vancleave, Mississippi man pled guilty to possession of more than 9,900 images and videos of child pornography, announced U.S. Attorney Todd W. Gee and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Cameron Willis Cotrill, 67, was identified in an online child exploitation investigation on the BitTorrent network for offenders possessing and sharing child sexual abuse material. As part of the investigation, a direct download was completed of 139 files that were being made available from Cotrill’s device at his Vancleave address. On January 11, 2022, the FBI assisted state officers with the execution of a state search warrant at Cotrill’s address. Full forensic examinations of Cotrill’s electronic devices recovered at the search determined that Cotrill possessed over 9,900 images and videos on his desktop computer depicting the sexual abuse of children.
Cotrill is scheduled to be sentenced on April 11, 2024, at 10:00 a.m., in Gulfport. He faces a maximum penalty of 20 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation is investigating the case with assistance from the Mississippi Attorney General’s Office.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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.
United Memorial Medical Center to pay $2M plus additional payments for allegedly causing false claims related to excessive cost outlier payments and double billing for Covid-19 testsRead the Press Release
HOUSTON – Doctor’s Hospital 1997 L.P. dba United Memorial Medical Center LLC (UMMC) has agreed to pay $2 million and to make additional contingent payments to resolve alleged False Claims Act violations.
UMMC is an entity that formerly operated hospitals in the Houston area. They allegedly claimed excessive cost outlier payments from government health care programs and double billed the government for COVID-19 tests that were also billed either to the State of Texas or the City of Houston.
According to the agreement between UMMC and the United States, the settlement funds will be paid by one of UMMC’s principals, Ravishanker Mallapuram, and UMMC has guaranteed the payment of those funds.
“This over $2 million settlement is significant,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “We depend upon medical providers to be good stewards of a community’s healthcare services and of the federally funded programs that pay for those services. The case alleges UMMC made millions by overbilling those health care programs and intentionally double billing for COVID-19 testing. Instead of returning those monies to America’s taxpayers, they allegedly pocketed the money for themselves. Finding the wrongdoing and lost monies in these types of cases involves complexities akin to playing three-dimensional chess, but know this, the SDTX will not stop in its quest for justice until it can claim checkmate.”
“Hospitals and other providers who participate in federal health care programs have an obligation to the taxpayers to ensure that they are billing appropriately,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Department of Justice’s Civil Division. “We will hold accountable those who knowingly overbill or double bill for the medical services they provide to federal beneficiaries.”
In addition to its standard payment system, Medicare and Tricare provide supplemental reimbursement to hospitals called “cost outlier” payments in cases where the cost of care is unusually high. Congress enacted the supplemental outlier payment system to ensure that hospitals possess the incentive to treat inpatients whose care requires unusually high costs. This settlement resolves allegations that UMMC submitted claims for cost outlier payments by rapidly increasing its charges for inpatient care and underreporting its charges on Medicare cost reports, thereby preventing the government health care programs from adjusting those charges so that they would reasonably reflect UMMC’s actual costs. The settlement also resolves allegations that UMMC concealed and improperly avoided its obligation to reimburse the federal health care programs for any excessive outlier payments its hospitals received.
In addition, UMMC has agreed to settle allegations that it submitted claims to the Health Resources and Services Administration’s Uninsured Program for COVID-19 testing services, despite being reimbursed for those same services by either the State of Texas or the City of Houston.
“Hospitals and executives who run them should prioritize accurate, lawful billing of Medicare and other taxpayer-funded health care programs at all times,” said Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services - Office of Inspector General (HHS-OIG). “This practice is especially imperative, however, when the world is responding to a public health crisis. At HHS-OIG, it is our fundamental responsibility to, along with our law enforcement partners, safeguard federally funded health care programs and American taxpayer monies.”
“The Department of Defense (DOD) Office of Inspector General's Defense Criminal Investigative Service (DCIS) is committed to rooting out fraud schemes that waste valuable taxpayer resources intended for the healthcare of our service members, military retirees and their families,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “DCIS, along with our law enforcement partners, will aggressively pursue and hold those accountable who took advantage of the pandemic for profit at the expense of DOD's taxpayer funded healthcare program, known as TRICARE.”
“The FBI and its partners will relentlessly pursue bad actors that participate in nefarious double billing at the cost of the American taxpayer and our health care system,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response and Services Branch. “Violations of the False Claims Act will not be tolerated. If you do not follow the law, you will face the consequences of your noncompliance.”
The settlement resolves a lawsuit originally brought by Ryan Griffin, a former employee of UMMC, under the qui tam provisions of the False Claims Act. The Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. Under the settlement announced today, Griffin will receive $300,000.
This settlement was the result of a coordinated effort by the Justice Department's Civil Division; the U.S. Attorney’s Office for the Southern District of Texas; HHS, Office of Counsel to the Inspector General and Office of Investigations; DCIS and the FBI.
The lawsuit resolved by this settlement is captioned United States, et al., ex rel. Ryan Griffin v. Mediscope Global Services Pvt Ltd., et al., 3:21-cv-183 (S.D. TX.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
United Memorial Medical Center to Pay $2 Million Plus Additional Contingent Payments for Allegedly Causing False Claims Related to Excessive Cost Outlier Payments and Double Billing for Covid-19 TestsRead the Press Release
Doctor’s Hospital 1997 L.P., doing business as United Memorial Medical Center LLC (UMMC), an entity that formerly operated hospitals in the Houston, Texas area, has agreed to pay $2 million, and to make additional contingent payments, to resolve alleged False Claims Act violations for claiming excessive cost outlier payments from government health care programs and for double billing the government for COVID-19 tests that were also billed either to the State of Texas or the City of Houston.
According to the settlement agreement between UMMC and the United States, the settlement funds will be paid by one of UMMC’s principals, Ravishanker Mallapuram, and UMMC has guaranteed the payment of those funds.
“Hospitals and other providers who participate in federal health care programs have an obligation to the taxpayers to ensure that they are billing appropriately,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Department of Justice’s Civil Division. “We will hold accountable those who knowingly overbill or double bill for the medical services they provide to federal beneficiaries.”
In addition to its standard payment system, Medicare and Tricare provide supplemental reimbursement to hospitals called “cost outlier” payments in cases where the cost of care is unusually high. Congress enacted the supplemental outlier payment system to ensure that hospitals possess the incentive to treat inpatients whose care requires unusually high costs. This settlement resolves allegations that UMMC submitted claims for cost outlier payments by rapidly increasing its charges for inpatient care and underreporting its charges on Medicare cost reports, thereby preventing the government health care programs from adjusting those charges so that they would reasonably reflect UMMC’s actual costs. The settlement also resolves allegations that UMMC concealed and improperly avoided its obligation to reimburse the federal health care programs for any excessive outlier payments its hospitals received.
In addition, UMMC has agreed to settle allegations that it submitted claims to the Health Resources and Services Administration’s Uninsured Program for COVID-19 testing services, despite being reimbursed for those same services by either the State of Texas or the City of Houston.
“This over $2 million settlement is significant,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “We depend upon medical providers to be good stewards of a community’s healthcare services and of the federally funded programs that pay for those services. The case alleges UMMC made millions by overbilling those health care programs and intentionally double billing for COVID-19 testing. Instead of returning those monies to America’s taxpayers, they allegedly pocketed the money for themselves. Finding the wrongdoing and lost monies in these types of cases involves complexities akin to playing three-dimensional chess, but know this, the SDTX will not stop in its quest for justice until it can claim checkmate.”
“Hospitals and executives who run them should prioritize accurate, lawful billing of Medicare and other taxpayer-funded health care programs at all times,” said Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “This practice is especially imperative, however, when the world is responding to a public health crisis. At HHS-OIG, it is our fundamental responsibility to, along with our law enforcement partners, safeguard federally funded health care programs and American taxpayer monies.”
“The Department of Defense (DOD) Office of Inspector General's Defense Criminal Investigative Service (DCIS) is committed to rooting out fraud schemes that waste valuable taxpayer resources intended for the healthcare of our service members, military retirees and their families,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “DCIS, along with our law enforcement partners, will aggressively pursue and hold those accountable who took advantage of the pandemic for profit at the expense of DOD's taxpayer funded healthcare program, known as TRICARE.”
“The FBI and its partners will relentlessly pursue bad actors that participate in nefarious double billing at the cost of the American taxpayer and our health care system,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response and Services Branch. “Violations of the False Claims Act will not be tolerated. If you do not follow the law, you will face the consequences of your noncompliance.”
The settlement resolves a lawsuit originally brought by Ryan Griffin, a former employee of UMMC, under the qui tam provisions of the False Claims Act. The Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. Under the settlement announced today, Griffin will receive $300,000.
This settlement was the result of a coordinated effort by the Justice Department's Civil Division; the U.S. Attorney’s Office for the Southern District of Texas; HHS, Office of Counsel to the Inspector General and Office of Investigations; DCIS and the FBI.
The lawsuit resolved by this settlement is captioned United States, et al., ex rel. Ryan Griffin v. Mediscope Global Services Pvt Ltd., et al., 3:21-cv-183 (S.D. TX.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Settlement ComplaintU.S. Attorney Easley Issues Warning on Machine Gun Switches - Two Men Recently Sentenced for Machine Gun Conversion DevicesRead the Press Release
RALEIGH, N.C. – In a new public service announcement link being promoted by the office on social media, U.S. Attorney Michael Easley issued a warning reminding people that they face up to ten years in prison and a $250,000 fine for possessing a Glock or auto-sear switch. A Glock or auto-sear switch is a small, conversion device that can be attached to a handgun, converting it into a fully automatic machine gun. This warning comes after two defendants were sentenced for possession of these devices in Eastern North Carolina.
“In the last week we’ve sentenced two defendants caught with ghost guns modified into fully automatic machineguns. According to ATF, from 2017 to 2021, over 5,000 machinegun conversion devices, or “switches,” were recovered in the U.S. – a 570% increase from the 814 recovered between 2012 and 2016. The number of switches continue to increase, with thousands recovered nationwide over the last two years,” said U.S. Attorney Michael Easley. “A gun with a switch can automatically fire an entire 30-round magazine in about two seconds. Owning the switches is equivalent to owning a machine gun, and if you have them, our office will prosecute you.”
In the past two weeks, two individuals have been sentenced to 80 months and 162 months respectively for possession of a machine gun or machine gun conversion device.
A Farmville man, Lamikah Baptist, age 19 and a member of a local gang, pled guilty and was sentenced to 80 months for possession of a machine gun. According to court documents and other information presented in court, on January 15, 2023, the Greenville Police Department responded to a shots-fired call outside a residence where shots were fired at individuals in the yard. A SpotShotter report indicated that 21 rounds of automatic gunfire were discharged, and officers found 20 spent shell casings on the road in front of the home. Surveillance video showed Baptist as a passenger in a car leaving the scene after the shooting, and within five minutes, Baptist went live on Instagram with a video that appeared to reference the shooting and indicate that it was directed at members of a rival gang that had killed Baptist’s friend. On and around the date of the shooting, Baptist posted other videos titled, “Just me and my switch,” where he is heard talking about owning a switch and “Come get this off me,” where he is shown with a privately manufactured Polymer80 handgun and a bag of marijuana. A search of the residence where Baptist was apprehended revealed a ghost gun with a switch loaded with 20 rounds of ammunition, additional ammunition, a 50-round drum magazine, marijuana and a ballistic vest.
A Wilmington man, Tyrese Jerry Dawson, age 24, pled guilty and was sentenced to 162 months for two counts of possession of a machine gun conversion device, two counts of possession with intent to distribute fentanyl, and two counts of possession of a firearm in connection with a drug trafficking crime. According to court documents and other information presented in court, Dawson was involved in multiple traffic stops in the Wilmington area, including one where he led officers on a high-speed chase traveling in excess of 70 miles per hour and drove on the wrong side of the road. Searches of the vehicles involved in the traffic stops revealed, cocaine, fentanyl, marijuana and three personally made firearms without serial numbers, also known as “ghost guns,” two of which had high-capacity magazines. Dawson’s fingerprints were located on at least one of the guns with an extended magazine. A fourth ghost gun with a switch and a 31-round magazine was found in a bag Dawson was observed to have left near a car wash.
“Machine gun conversion kits are turning up more and more in our streets and at crime scenes,” said Special Agent in Charge Bennie Mims. “These conversion devices are illegal, incredibly dangerous, and pose a serious threat to the community. ATF is working closely with our law enforcement partners to keep these devices off our streets.”
Easley encouraged individuals with information on machine gun conversion devices to call the tip line at the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) at 1-888-ATF-TIPS or ATF.gov/ATF-Tips.
U.S. District Court Judge C. Dever III handed down both sentences. The Baptist case was investigated by the Greenville Police Department and the ATF and prosecuted by Assistant U.S. Attorney Phil Aubart. The Dawson case was investigated by the Wilmington Police Department, the New Hanover and Brunswick County Sheriff’s Offices and the ATF and prosecuted by Special Assistant U.S. Attorney Will Van Trigt. Van Trigt is a prosecutor with the New Hanover County District Attorney’s Office assigned to the U.S. Attorney’s Office to handle federal cases. This has been made possible by a grant from the county.
A copy of this press release is located on our website. 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. 4:23-cr-00009-D and 7:23-cr-00042-D.
U.S. Attorney Announces Terrorism Charges Against High-Ranking Hizballah Member Who Helped Plan 1994 Bombing in Buenos Aires, ArgentinaRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of terrorism charges against SAMUEL SALMAN EL REDA, a/k/a “Samuel Salman El Reda El Reda,” a/k/a “Salman Raouf Salman,” a/k/a “Sulayman Rammal,” a/k/a “Salman Ramal,” a/k/a “Salman Raouf Salman,” a/k/a “Hajj,” a dual Colombian-Lebanese citizen and member of Hizballah’s Islamic Jihad Organization (“IJO”), in connection with EL REDA’s alleged role leading decades of terrorist activity on behalf of Hizballah and the IJO. EL REDA is charged with, among other offenses, conspiring to provide and providing material support to Hizballah, a designated foreign terrorist organization. The charges are contained in an Indictment unsealed today in Manhattan federal court. EL REDA is based in Lebanon and remains at large.
U.S. Attorney Damian Williams said: “As alleged, for decades, Samuel Salman El Reda has led terrorist operations on behalf of the Islamic Jihad Organization of Hizballah, including a 1994 bombing in Buenos Aires that massacred 85 innocent victims. The career prosecutors of this Office have not forgotten the pain and suffering that El Reda has allegedly caused, and we thank the dedication of our law enforcement partners for pursuing this important case. The Southern District of New York continues to be a leader in prosecuting violent terrorists and terrorist organizations, and we will not rest until those who create chaos and destruction are brought to justice.”
Assistant Attorney General Matthew G. Olsen said: “Nearly three decades ago, long-time Hizballah terrorist operative Samuel Salman El Reda allegedly helped plan and execute the heinous attack on a Buenos Aires Jewish community center that murdered 85 innocent people and injured countless others. This indictment serves as a message to those who engage in acts of terror: that the Justice Department’s memory is long, and we will not relent in our efforts to bring them to justice.”
FBI Assistant Director in Charge James Smith said: “The evil and horror wrought by terrorism reaches all corners of the globe. Samuel Salman El Reda was allegedly involved in carrying out terrorist activity on behalf of Hizballah throughout the world. The New York Joint Terrorism Task Force and our law enforcement partners are unwavering in our determination to bring any individual who supports the evils of terrorism to justice.”
NYPD Commissioner Edward A. Caban said: “As alleged, El Reda was an on-the-ground coordinator of the fatal attack against South America’s largest Jewish center nearly 30 years ago. In the decades after that attack, he allegedly continued to direct and support terrorism activities in the Western Hemisphere on behalf of Hizballah and has been involved in plots all across the world. We want this alleged killer brought to justice.”
According to the allegations contained in the Indictment charging the defendant and other public court documents:[1]
Hizballah is a Lebanon-based Shia Islamic organization with political, social, and terrorist components. Hizballah was founded in the 1980s with support from Iran after the 1982 Israeli invasion of Lebanon, and its mission includes establishing a fundamentalist Islamic state in Lebanon. Since Hizballah’s formation, the organization has been responsible for numerous terrorist attacks that have killed hundreds, including U.S. citizens and military personnel. In 1997, the U.S. Department of State designated Hizballah as a foreign terrorist organization, pursuant to Section 219 of the Immigration and Nationality Act, and it remains so designated today. In 2001, pursuant to Executive Order 13224, the U.S. Department of the Treasury designated Hizballah as a Specially Designated Global Terrorist entity. In 2010, State Department officials described Hizballah as the most technically capable terrorist group in the world and a continued security threat to the United States.
The IJO, which is also known as the External Security Organization and “Unit 910,” is a component of Hizballah responsible for the planning and coordination of intelligence, counterintelligence, and terrorist activities on behalf of Hizballah outside of Lebanon. In July 2012, an IJO operative detonated explosives on a bus transporting Israeli tourists in the vicinity of an airport in Burgas, Bulgaria, killing six people and injuring 32 others. Law enforcement authorities have disrupted several other IJO attack-planning operations around the world, including through the arrest of an IJO operative surveilling Israeli targets in Cyprus in 2012, the seizure of bomb-making precursor chemicals in Thailand in 2012, the seizure of similar chemicals in May 2015 in connection with the arrest of another IJO operative, and the seizure of approximately three tons of ammonium nitrate in London in the fall of 2015. Since June 2017, multiple IJO operatives have been arrested, charged, and convicted in the Southern District of New York for terrorism-related offenses.
Beginning in at least 1993, EL REDA has led terrorist operations on behalf of Hizballah and the IJO in South America, Asia, and Lebanon. EL REDA was responsible for, among other things, helping to plan and execute the July 18, 1994, bombing of the Asociaión Mutual Israelita Argentina (“AMIA”) building in Buenos Aires, Argentina, which killed 85 people and injured hundreds more. EL REDA’s activities for Hizballah in connection with the AMIA bombing included relaying information to IJO operatives that was used for planning and executing the attack. In the decades following the attack, EL REDA continued to engage in terrorist activity on Hizballah’s behalf by recruiting, training, and managing IJO operatives around the world. EL REDA deployed IJO operatives to Thailand, Panama, and Peru, among other places, to help Hizballah and the IJO conduct pre-operational surveillance in support of attack planning and stockpile explosive precursor chemicals, including ammonium nitrate. For example, in or about May 2009, EL REDA instructed an IJO operative to travel to Thailand to help destroy a cache of ammonium nitrate and other explosive materials that the IJO believed was under law enforcement surveillance. In or about February 2011, EL REDA instructed an IJO operative to travel to Panama to surveil the Panama Canal and Embassies maintained by the United States and Israel, and in or about January 2012, EL REDA instructed an IJO operative to travel again to Panama to conduct additional pre-operational surveillance.
* * *
EL REDA, 58, of Lebanon, has been charged with: (i) providing material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; (ii) conspiring to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; (iii) aiding and abetting the receipt of military-type training from a designated foreign terrorist organization, which carries a maximum sentence of 10 years in prison or a fine; and (iv) conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentence would be imposed by a judge.
Mr. Williams praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD. Mr. Williams also thanked the Department of Justice’s National Security Division, Counterterrorism Section, and the Department of Justice’s Office of International Affairs, for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Jacob H. Gutwillig and Jason A. Richman are in charge of the prosecution, with assistance from Deputy Chief Larry Schneider of the Counterterrorism Section.
The charges in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Suburban Chicago Physicians Sentenced to Federal Prison for Health Care FraudRead the Press Release
CHICAGO — Two suburban Chicago physicians have been sentenced to federal prison for prescribing opioids to individuals who lacked a legitimate medical need for the drugs.
STANLEY DAVID DEMOREST managed Demorest Consultants LLC, a medical practice in Melrose Park, Ill. NICHOLAS RECCHIA was employed there as a physician. From 2015 to 2020, Demorest and Recchia agreed to dispense hydrocodone, oxycodone, fentanyl, and other controlled substances to individuals who visited Demorest Consultants but whom Demorest and Recchia knew had no legitimate medical need for the drugs. In some instances, Demorest, who voluntarily surrendered his DEA Registration Number in 2015 and lost his ability to lawfully prescribe controlled substances, used Recchia’s name and DEA Registration Number to issue prescriptions for controlled substances to patients. Demorest and Recchia caused pharmacies to submit numerous claims to Medicare and Medicaid seeking payment for the improper prescriptions.
Demorest, 67, of Bloomingdale, Ill., pleaded guilty earlier this year to one count of health care fraud and one count of unlawfully using another person’s DEA registration number to dispense controlled substances. Recchia, 64, of River Grove, Ill., pleaded guilty earlier this year to one count of health care fraud. Both defendants admitted in plea agreements that they dispensed controlled substances outside the usual course of medical practice and without a legitimate medical purpose. On Dec. 14, 2023, U.S. District Judge John F. Kness sentenced Demorest to two years in federal prison and Recchia to six months in prison.
The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Division of the DEA, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, Mario Pinto, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Health and Human Services, Office of Inspector General, and Irene Lindow, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Labor, Office of Inspector General.
“During a time of epidemic prescription opioid abuse, a trained physician is the last person that the public should expect to knowingly and intentionally issue unauthorized prescriptions for opioids,” Assistant U.S. Attorney Brian Hayes argued in the government’s sentencing memorandum. “Knowing and intentional violations of controlled substances laws by medical professionals during this time must be met with serious sanctions.”
Two Men Indicted for Theft of 123 Guns from Dunham’s Sports Store in Benton HarborRead the Press Release
The men are charged with kidnapping, robbery, and stealing guns from a federally licensed firearm dealer.
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that the Grand Jury returned an indictment charging Darnell Bishop and Dontrell Nance, both from Benton Harbor, with kidnapping, interference with commerce by robbery, brandishing a firearm during and in relation to a crime of violence, and theft of firearms from a federal firearms licensee. Nance is also charged with being a felon in possession of firearms. If convicted, both men face up to life in prison. The previous press release, complaint, and press conference can be viewed here.
“We are experiencing a gun violence epidemic across our country,” said U.S. Attorney Totten. “Incidents like what happened at Dunham’s Sports are stunning illustrations of crimes that are dumping guns into our neighborhoods and fueling the gun crisis. We are grateful to law enforcement for recovering nearly all the guns, and my office fully intends to satisfy our burden and prove this case in court.”
Bishop and Nance were previously charged by complaint. The complaint alleged that late on November 16, 2023, Darnell Bishop and Dontrell Nance approached the Dunham’s store manager outside his home and held him at gunpoint. Bishop and Nance then handcuffed and blindfolded the manager and took him to another location; there, they forced him to provide security access information for the Dunham’s store. Bishop took the manager’s keys, entered the Dunham’s store, and left with more than 120 handguns packed into two large coolers. Police later recovered all but one gun.
Investigators searched residences and vehicles associated with Bishop and Nance on November 17, 2023, and found firearms stolen from Dunham’s as well as an additional pistol. Both men were taken into custody that same day.
“The holidays just got merrier. Robberies and burglaries of gun dealers represent the biggest threat to our community’s public safety,” said Detroit Field Division Special Agent James Deir. “With the indictment of Dontrelle Nance and Darnell Bishop, and swift investigation from ATF’s law enforcement partners, the holidays can be celebrated without the fear of over 120 firearms finding their way into the wrong hands.”
“The FBI is incredibly proud of the Benton Harbor Safe Streets Task Force’s swift action in apprehending the defendants and ensuring the stolen weapons did not make their way into our community,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “All too often, weapons like these are used to perpetrate violence and cause irreparable damage to Michigan families. The FBI, along with our local, state, and federal law enforcement partners, remain committed to working collectively to ensure the safety of our residents.”
This case was investigated by the Benton Charter Township Police Department, Benton Harbor Department of Public Safety, Berrien County Sheriff’s Department, Michigan State Police, ATF, and FBI.
The charges in an indictment are merely accusations, and both defendants are presumed innocent until and unless proven guilty in a court of law.
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Tuscaloosa Woman Charged in $600,000 COVID-19 Loan FraudRead the Press Release
BIRMINGHAM, Ala. – A Tuscaloosa woman has been charged with defrauding the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) and laundering the proceeds, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
A twelve-count indictment filed in U.S. District Court charges Tarnisha Doss Harrell, 46, with conspiracy to commit wire fraud, wire fraud, and money laundering.
According to the indictment, from July 2020 through June 2021, Harrell applied for and received two fraudulent PPP loans and conspired with four other Tuscaloosa residents to apply for an additional six fraudulent loans for which she received a share of the proceeds. Harrell submitted loan applications containing material misrepresentations and supported by falsified and fraudulent documentation. The eight loans total $603,976.
If convicted, Harrell faces up to 20 years in prison.
FBI investigated the case. Assistant U.S. Attorney Jonathan “Jack” Harrington is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Three Sentenced to Prison for Conspiring to Steal USDA-Mortgaged HousesRead the Press Release
Natchez, Miss. – Three individuals were sentenced for their respective roles in a scheme to steal houses from the United States Department of Agriculture.
Barry Martin, 47, of Georgia was sentenced to 46 months in prison; Fiesta Kagler, 59, of Georgia, was sentenced to 46 months in prison; and Ella Martin, 69, of Jayess, Mississippi, a former USDA employee, was sentenced to 35 months in prison.
According to court documents, the defendants conspired to identify and steal USDA-mortgaged properties. The targeted properties were mortgaged through the Brookhaven office of USDA Rural Development, an agency which helps rural residents buy or rent safe, affordable housing, especially low and very low income individuals. As an employee of that office, Ella Martin had access to a list of abandoned, foreclosed, nearly-foreclosed, or similarly distressed USDA-mortgaged properties and would create fraudulent warranty deeds designed to convey ownership of those properties to her co-conspirators and others. The fraudulent deeds included forged signatures from former homeowners, including at least one deceased individual. The fraudulent deeds were then filed in Chancery Courts around Mississippi with the intent to deprive the actual owners of the use and benefit of the properties and to deprive the United States Government of the actual value of the properties.
All three defendants will be required to pay restitution, which will be determined at a separate hearing.
U.S. Attorney Todd W. Gee and Special Agent in Charge Dax Roberson of the USDA Office of the Inspector General (OIG) made the announcement.
The USDA OIG and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Kimberly T. Purdie prosecuted the case.
Three Men Sentenced to Prison for Their Roles in Nationwide “Felony Lane Gang” ConspiracyRead the Press Release
ALBANY, NEW YORK – Three men – Randall Taylor, age 37, of Fort Lauderdale, Florida; Cedric Lynch, age 38, of Orlando, Florida; and Keyshawn Arnold, age 27, of Schenectady, New York – have been sentenced to federal prison after previously pleading guilty to conspiracy to commit bank fraud and to aggravated identity theft.
United States Attorney Carla B. Freedman; James Smith, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI); and Putnam County Sheriff Kevin J. McConville made the announcement.
In previously pleading guilty, the three defendants each admitted that they were involved in a fraud scheme known as “Felony Lane Gang” at various times between 2015 and 2020. To operate the scheme, these defendants and their co-conspirators traveled across the country breaking into cars, often targeting those parked by women at locations such as health and fitness centers, daycares, and parks. They stole purses containing debit cards, credit cards, checkbooks and photo identifications in these “smash-and-grab” vehicle thefts, and they recruited women to commit bank fraud by impersonating the smash-and-grab victims in drive-through bank lines in order to cash stolen checks. The check cashers were almost always suffering from an addiction to controlled substances and were provided payment at least partially in drugs. The total loss amount from the conspiracy was over $1 million, with individual co-conspirators responsible for portions of that loss.
Taylor, Lynch, and Arnold received the following sentences imposed by United States District Judge Mae A. D’Agostino:
- Taylor was sentenced on December 20, 2023 to 61 months’ imprisonment and was ordered to pay restitution in the amount of $54,967, along with a forfeiture money judgment of $11,240, and he was ordered to serve a 4-year term of supervised release after completing his term of imprisonment.
- Lynch was sentenced on November 22, 2023 to 61 months’ imprisonment and was ordered to pay restitution in the amount of $80,464, along with a forfeiture money judgment of $11,740, and he was ordered to serve a 4-year term of supervised release.
- Arnold was sentenced on November 20, 2023 to 51 months’ imprisonment and was ordered to pay restitution in the amount of $142,670, along with a forfeiture money judgment of $19,810, and he was ordered to serve a 4-year term of supervised release.
Six other defendants were charged in the indictment as co-conspirators with Taylor, Lynch and Arnold, and they all pled guilty and were sentenced previously, as follows:
- Joshua Mallory, age 38, of Fort Lauderdale, was sentenced on October 27, 2023 to 80 months’ imprisonment and was ordered to pay restitution in the amount of $364,989.56, along with a forfeiture money judgment of $17,183.90, and he was ordered to serve a 5-year term of supervised release.
- Tyrone Parker Jr., age 24, of Fort Lauderdale, was sentenced on October 20, 2023 to 65 months’ imprisonment and was ordered to pay restitution in the amount of $81,737, along with a forfeiture money judgment of $8,630, and he was ordered to serve a 4-year term of supervised release.
- Robert Natson, age 37, of Fort Lauderdale, was sentenced on October 4, 2023 to 46 months’ imprisonment and was ordered to pay restitution in the amount of $34,400, along with a forfeiture money judgment of $4,352, and he was ordered to serve a 4-year term of supervised release.
- Gary Grier, age 37, of Fort Lauderdale, was sentenced on August 25, 2023 to 51 months’ imprisonment and was ordered to pay restitution in the amount of $163,964, along with a forfeiture money judgment of $1,880, and he was ordered to serve a 3-year term of supervised release.
- Terrell McDonald, age 33, of Troy, New York, was sentenced on March 13, 2023 to 65 months’ imprisonment and was ordered to pay restitution in the amount of $133,190, along with a forfeiture money judgment of $17,648.28, and he was ordered to serve a 3-year term of supervised release.
- Tyrone Parker (the father of co-defendant Tyrone Parker Jr.), age 42, of Fort Lauderdale, was sentenced on February 13, 2023 to 57 months’ imprisonment and was ordered to pay restitution in the amount of $132,990, along with a forfeiture money judgment of $7,202, and he was ordered to serve a 3-year term of supervised release.
This case was investigated by the FBI Westchester Resident Agency of the New York Field Office and the Putnam County Sheriff’s Department, with assistance from the FBI Field Offices in Albany, Miami, and Salt Lake City, and Resident Agencies in Savannah, Georgia, and Portland, Maine, and from the U.S. Attorney’s Office for the District of Maine, the Saratoga County District Attorney’s Office, and the Ulster County District Attorney’s Office. Additional assistance was provided by numerous law enforcement agencies, including, within New York, the New York State Police; Columbia County Sheriff’s Office; Genesee County Sheriff’s Office; Monroe County Sheriff’s Office; Saratoga County Sheriff’s Office; Warren County Sheriff’s Office; and the police departments of the Town of Bethlehem; Glens Falls; Gloversville; Greenburgh; Greece; and Watervliet; and elsewhere, Connecticut State Police; Florida Department of Law Enforcement; Georgia State Patrol; Illinois State Police; Massachusetts State Police; Broward County, FL Sheriff’s Office; Northern York County, PA Regional Police; Southern Chester County, PA Regional Police; Utah County, UT Sheriff’s Office; and the police departments of Auburn, MA; Bath, ME; Biddeford, ME; Bozeman, MT; Brunswick, ME; Caernarvon Township, PA; Chester Township, PA; Cinnaminson, NJ; Darien, CT; East Norriton Township, PA; Easthampton, MA; Greenwich, CT; Lower Moreland Township, PA; Manheim Township, PA; Portland, ME; Portsmouth, NH; Saco, ME; Salisbury, MA; Sanford, ME; Scarborough, ME; Somersworth, NH; South Portland, ME; St. George, UT; Syracuse, UT; Tinicum, PA; Towamencin, PA; Tewksbury, MA; Wakefield, MA; Yarmouth, ME; and York, ME.
Assistant United States Attorneys Matthew J. McCrobie, Michael F. Perry and Paul Tuck prosecuted this case.
Texas Man Pleads Guilty for Facilitating Multi-Million Dollar Financial Fraud Schemes and Operating an Unlicensed Money Transmitting BusinessRead the Press Release
CHARLOTTE, N.C. – Emmanuel Unuigbe, 41, of Dallas, Texas, appeared before U.S. Magistrate Judge Susan C. Rodriguez today and pleaded guilty to money laundering conspiracy and conspiracy to operate an unlicensed money transmitting business, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina joins U.S. Attorney King in making today’s announcement.
According to court documents and today’s plea hearing, from 2018 to 2023, Unuigbe conspired with other individuals in the United States and overseas to launder millions of dollars of illegal proceeds obtained through extensive financial criminal activity. As Unuigbe admitted in court today, he created Stage 23 Konsult LLC (Stage 23) that claimed to be, among other things, a transportation business. In reality, the majority of Stage 23’s business was related to money laundering and the unlawful money transmitting of criminal proceeds.
According to court records, Unuigbe and his co-conspirators engaged in two separate but related conspiracies. The first, a conspiracy to commit money laundering, involved engaging in financial transactions involving the proceeds of various fraudulent schemes. This included online romance scams, in which co-conspirators contacted victims, most of whom were elderly, through various online dating and social media sites, and convinced those victims to transfer funds to bank accounts under the control of Unuigbe, Stage 23, and others. It also included laundering the proceeds of Business Email Compromise schemes, or BECs, which often target businesses involved in wire transfer payments. As Unuigbe admitted in court today, as part of this conspiracy, businesses were tricked into wiring legitimate payments into bank accounts controlled by Unuigbe and other co-conspirators. Once the fraud proceeds of the romance and the BEC scams were received, Unuigbe and other individuals rapidly depleted the accounts through multiple withdrawals and transfers into other accounts, including overseas accounts.
According to filed court documents, Unuigbe and his co-conspirators earned compensation by keeping a percentage of fraudulent proceeds obtained through the schemes. They also earned compensation by conspiring to operate an unlicensed money transmitting business, whereby he and his co-conspirators agreed to “pay” for the domestic deposits received by others by transferring Nigerian Naria from accounts the co-conspirators controlled in Nigeria to other accounts in Nigeria, based upon a “black market” exchange rate for United States Dollars to Naira.
Unuigbe is in federal custody. The charge of money laundering conspiracy carries a maximum sentence of 20 years in prison. The charge of conspiracy to operate an unlicensed money transmitting business has a statutory penalty of up to five years in prison. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked the FBI for their investigation of the case, which is ongoing.
Assistant U.S. Attorney Daniel Ryan with the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Stockton Man Indicted on Firearm ChargeRead the Press Release
SACRAMENTO, Calif. — On Dec. 14, 2023, a grand jury returned an indictment Ricardo Sanchez, 31, of Stockton, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed today.
According to court documents, on Aug. 20, 2023, Sanchez was found to be in possession of a Springfield Armory Hellcat 9 mm semi-automatic pistol. Sanchez is prohibited from possessing a firearm due to multiple prior felony convictions, including conspiracy to commit a crime and inflicting injury on a spouse/cohabitant or fellow parent.
This case is the product of an investigation by the Sacramento Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Whitnee Goins is prosecuting the case.
If convicted, Sanchez faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Springfield Man Received Delivery of 30 Pounds of MethRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man has pleaded guilty in federal court to his role in a drug-trafficking conspiracy after receiving a delivery of approximately 30 pounds of methamphetamine from California.
Saul Fernandez, 29, pleaded guilty before U.S. District Judge M. Douglas Harpool on Dec. 13, 2023, to one count of conspiracy to distribute methamphetamine.
By pleading guilty, Fernandez admitted that he was the intended recipient of approximately 30 pounds (13.34 kilograms) of methamphetamine that was transported to Springfield from California.
According to today’s plea agreement, an officer with the Kansas Highway Patrol stopped a 2021 Nissan Altima for speeding on Feb. 19, 2022. The officer searched the vehicle and found 31 packages that contained a total of approximately 30 pounds of methamphetamine. The driver was transporting the methamphetamine to Fernandez and agreed to cooperate in a controlled delivery.
The next day, DEA investigators called Fernandez, who directed the cooperator where to go and when he would be picking up the vehicle and the methamphetamine. Investigators saw Fernandez pick up the vehicle from the cooperator, stopped him a short time later walking away from the vehicle, and placed him under arrest. Fernandez had the keys to the vehicle at the time of his arrest.
Fernandez admitted to investigators that he agreed to accept the car. Although he initially claimed he did not know what was in the vehicle, Fernandez admitted that he knew his contact in California had been arrested in January 2022 with 90 pounds of methamphetamine. Fernandez also told investigators that he was supposed to receive $1,000 for picking up the car and holding it for an individual in Chicago, who would come pick the car up.
Under federal statutes, Fernandez is subject to a mandatory minimum sentence 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney John D. Hatcher. It was investigated by the Drug Enforcement Administration, the Springfield, Mo., Police Department, and the Kansas Highway Patrol.
Six Connecticut Men Charged with Offenses Stemming from Gun Trafficking InvestigationRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, James Ferguson, Special Agent in Charge, ATF Boston Field Division, and Bridgeport Police Chief Roderick Porter today announced that a federal grand jury in New Haven has returned a 12-count indictment charging the following six individuals with gun trafficking and other offenses:
STEFAN BAGLEY, JR., 22, of Stratford
TREMAYNE FERGUSON, a.k.a., “Tre,” 23, of West Haven
JAMAINE ADKINS, JR., a.k.a. “G Banger,” 21, of Stratford
JEFFREY CHARLESTON, a.k.a. “J Dot,” 20, of Bridgeport
ESKAVAIL GORDON, a.k.a. “Vail,” 20, of Stratford
CHASE DRALLE, a.k.a. “Chevy,” 20, of TrumbullThe indictment was returned on December 12, 2023, and the six defendants were arrested on December 18.
As alleged in the indictment, court documents, and statements made in court, on July 26, 2023, Stefan Bagley, Jr. was shot and wounded while traveling in his vehicle in Bridgeport. Later that same day, Bagley’s vehicle was used in another shooting incident in Bridgeport. An investigation revealed that, between October 2022 and October 2023, Bagley purchased approximately 20 9mm handguns from licensed firearm dealers, and then trafficked the guns through a network of customers, including Ferguson, Charleston, Gordon, and Dralle. Bagley typically scratched the serial numbers off of the firearms before providing them to his customers, making the guns more difficult to trace. To date, only one of the firearms purchased by Bagley is accounted for.
The indictment charges Bagley with engaging in the business of dealing firearms without a license, which carries a maximum term of imprisonment of five years, and with making a false statement during the purchase of a firearm, which carries a maximum term of imprisonment of 10 years. The indictment also charges Bagley, Ferguson, Charleston, Gordon, and Dralle with one or more firearms trafficking offenses, each of which carries a maximum term of imprisonment of 15 years. Adkins is charged with possession of a firearm with an obliterated serial number, which carries a maximum term of imprisonment of five years.
U.S. Attorney Avery noted that this case is being prosecuted, in part, under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Bridgeport Police Department, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorneys Margaret Maigret Donovan and Jessica Casey through Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Shiprock Man Sentenced to 44 months in Prison for Federal Firearms OffenseRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Kendale Johnson was sentenced to 44 months in prison. Johnson, 34, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, pled guilty to being a felon in possession of a firearm and ammunition on March 2, 2023.
According to court documents, on the morning of Oct. 22, 2020, Johnson and another individual got into a confrontation at a residence in Shiprock which escalated into a shootout. The other individual fled the scene in a car with Johnson in pursuit. Johnson located the individual’s vehicle in front of a residence in Ojo Amarillo, New Mexico and fired on the residence with a rifle before fleeing the scene with the other individual now in pursuit of him. When the other individual’s vehicle malfunctioned and came to stop, Johnson pulled his vehicle alongside it, exited, and fired into the other vehicle. The occupant escaped the vehicle and fled on foot and was shortly arrested by officers from the Farmington Police Department.
Officers from the Navajo Police Department then began pursuing Johnson, who drove into oncoming traffic and at speeds upwards of 110 MPH while throwing items out of the vehicle. Officers from the Navajo Police Department were eventually able to immobilize Johnson’s vehicle using the PIT maneuver. Officers located 2 rifles and a night vision scope near the vehicle.
In his plea agreement, Johnson admitted to possessing a stock rifle, night vision scope, and 9mm ammunition magazine. At the time of the offense, Johnson had a prior conviction for assault with a dangerous weapon. As a convicted felon, Johnson could not legally possess a firearm or ammunition.
Upon his release from prison, Johnson will be subject to 3 years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant U.S. Attorney Matthew J. McGinley is prosecuting the case.
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Serial Sexual Abuser, with Multiple Prior Convictions, Sentenced to Prison Term for Another Attack on a Female StrangerRead the Press Release
WASHINGTON – Michael Hilliard, 64, pleaded guilty on December 19, 2023, to two misdemeanor charges for sexually abusing a woman and physically assaulting another, both of whom were strangers to him. He was sentenced by the Honorable Hiram E. Puig-Lugo, in the Superior Court of the District of Columbia, to 180 days on the misdemeanor sexual abuse charge—the maximum sentence available by statute—and 30 days on the misdemeanor assault charge, with the sentences to run consecutively to each other.
According to the government’s evidence, in the first offense, on June 28, 2023, Mr. Hilliard was observed by the victim walking in and out of traffic at 326 Rhode Island Avenue NW, Washington, DC 20001. Mr. Hilliard approached the victim asking for water and, after she obliged, he proceeded to rummage through her vehicle. After the victim told Mr. Hillard to stop, he struck her left arm then fled the area. He was apprehended shortly thereafter.
In the second offense, on August 16, 2023, Mr. Hilliard approached the driver’s side of the victim’s vehicle at 14th Street NW, Washington, DC 20005, demanding money. After the victim stated she did not have any cash, Mr. Hilliard reached into the open window and grabbed her breast. The terrified victim inquired what he was doing, and Mr. Hilliard responded that he was grabbing her “titty.” Mr. Hilliard was apprehended shortly thereafter.
Following these guilty pleas, Mr. Hilliard now has 26 misdemeanor sexual abuse convictions since 1999. His most recent sentencing for misdemeanor sexual abuse took place on January 4, 2023, where he also received the statutory maximum of 180 days. Additionally, he was convicted of a 4th degree sexual offense in Montgomery County, Maryland, on October 3, 2022, for which he is on supervision until 2025.
Mr. Hilliard has remained detained since his August 2023 arrest.
In announcing the sentence, U.S. Attorney Matthew M. Graves and Metropolitan Police Department Chief Pamela Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also commended the work of Assistant U.S. Attorney Alexis Dunlap and Special Assistant U.S. Attorney Betty Jean McNeil, who prosecuted the case through the guilty plea and sentencing.
Scituate Man Sentenced to Ten years in Federal Prison for Possession of Child Pornography Following Earlier Federal Conviction for Child Pornography OffensesRead the Press Release
PROVIDENCE – A North Scituate man, convicted in May 2009 and incarcerated in federal prison for possessing and distributing child pornography, has been sentenced to serve a further 10 years in federal prison for being in possession of child pornography after completing his previous sentence and while serving a term of federal supervised release, announced United States Attorney Zachary A. Cunha.
Based on information received from the National Center for Missing and Exploited Children in April of 2002, the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force identified an IP address, assigned to a business located on the ground floor of a multi-residence building in North Scituate, as having accessed child pornography. Further investigation by Homeland Security Investigations and Federal Probation officers successfully identified Brian Murphy, 54, a resident of the building, as having accessed child pornography using the business’ Wi-Fi. s. Murphy ultimately admitted to a federal judge that he used the Wi-Fi service and possessed child pornography.
He was sentenced on Tuesday by U.S. District Court Judge William E. Smith to a term of 120 months of incarceration in federal prison, to be followed by 10 years of federal supervised release.
The case was prosecuted by Assistant United States Attorney Milind M. Shah.
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Resident alien sent to prison for conspiracy to distribute meth and fleeing while out on bondRead the Press Release
CORPUS CHRISTI, Texas – A 54-year-old legal permanent resident of Mexico residing in San Antonio has been sentenced for possession with intent to distribute meth and failure to appear, announced U.S. Attorney Alamdar S. Hamdani.
Abel Avendano pleaded guilty for failing to appear and the underlying drug offense Feb. 1, 2022, and Oct. 27, 2022, respectively.
U.S. District Judge Nelva Gonzales Ramos has now ordered Avendano to serve 158 months in federal prison for the possession with intent to distribute meth. He also received 10 months for the failure to appear which must be served consecutively. Not a U.S. citizen, Avendano is expected to face removal proceedings following his total 168-month-term of imprisonment. In handing down the sentence, the court noted his role in the conspiracy and the amount of narcotics involved.
On June 19, 2020, Avendano approached the Falfurrias Border Patrol (BP) checkpoint. Authorities became suspicious when the driver of the vehicle appeared nervous. At secondary inspection, they found four kilograms of meth and discovered the vehicle had been stolen.
The investigation revealed a seizure of five kilograms of meth concealed in the same manner at the Pharr Port of Entry May 31, 2020. At that time, those arrested identified Avendano as the individual who hired them to transport the narcotics from Mexico.
The court permitted Avendano to be released on bond after his arrest pending conditions. He subsequently cut off his ankle monitor and fled.
Avendano was been in custody since his re-arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.
Repeat smuggler imprisoned for attempting to transport more than 560 aliensRead the Press Release
CORPUS CHRISTI, Texas – A 25-year-old Donna man has been sentenced for conspiring to transport illegal aliens into the United States, announced U.S. Attorney Alamdar S. Hamdani.
Miguel Angel Hernandez pleaded guilty April 26.
U.S. District Judge Nelva Gonzales Ramos has now ordered Hernandez to serve 108 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence regarding Hernandez’ violent history, including a conviction for robbery after he and others held a couple and their 7-year-old daughter at gun point while they robbed their fireworks stand. In handing down the sentence, the court noted there was a “huge number” of aliens involved in this case. Further, when Hernandez tried to say he wasn’t responsible for the age of the aliens or the conditions in which they were transported, Judge Ramos made it clear that as part of the conspiracy, he was responsible for the foreseeable actions of the others and he would be held accountable for that.
In July 2021, authorities discovered 67 undocumented aliens in the back of a tractor trailer. This began an almost two-year investigation into an alien smuggling organization who recruited drivers on social media and then failed to pay them for smuggling illegal aliens through Border Patrol checkpoints.
During the investigation, law enforcement discovered Hernandez was responsible for coordinating the smuggling of countless aliens, with at least 560 apprehended in failed attempts.
The apprehended individuals included men, women and children who were often smuggled in dangerous and inhumane ways. Due to extreme temperatures, those smuggled sometimes needed immediate medical treatment for severe dehydration.
In one of these cases, which occurred Sept. 11, 2022, authorities discovered 115 undocumented aliens in the back of a tractor trailer during a failed smuggling attempt.
“This individual oversaw a transnational criminal organization responsible for illegally smuggling thousands of noncitizens into the U.S. in the back of tractor trailers through the deadly Texas heat with no regard for their health and safety,” said Special Agent in Charge Mark Dawson, Homeland Security Investigations (HSI) Houston. “Today’s sentencing is the culmination of years of hard work by HSI Corpus Christi, HSI McAllen and our law enforcement partners in South Texas to successfully dismantle this human smuggling organization and restore some integrity to our nation’s immigration system.”
Hernandez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.
Readout from United States Attorney Alexander M.M. Uballez’s Listening Session with Escuela de Padres at West Mesa High SchoolRead the Press Release
ALBUQUERQUE – Last week, Alexander M.M. Uballez, United States Attorney for the District of New Mexico, met with staff, students, parents, and families from West Mesa High School’s Escuela de Padres to discuss issues they are seeing in the school and the community and how the U.S. Attorney’s Office can assist the school with addressing students’ safety. U.S. Attorney Uballez was joined by Principal Michele Torres, Albuquerque Public Schools Police Department School Resource Officer Augustine Sena, and Albuquerque Police Department Deputy Commander Mark Torres.
U.S. Attorney Uballez met with Escuela de Padres’ staff first to discuss the most pressing challenges facing school administrators, teachers, and counselors, ranging from drug and alcohol usage to truancy.
Next, U.S. Attorney Uballez met with the parents, families, and students and answered their questions about school safety. Many from the West Mesa community were concerned about the safety of students in school and whether there would be consequences when a gun is brought to school. U.S. Attorney Uballez discussed Second Judicial District Attorney Sam Bregman’s zero-tolerance policy for guns in school zones, New Mexico State’s Bennie Hargrove Gun Safety Act that holds gun owners accountable if they do not store their firearms safely, and how the federal government steps in to charge the most egregious offenses. He also discussed the responsibility every member of the community bears in taking care of not just their own families but building community networks to surround students with support and to work with school administrators and law enforcement to keep the community safe.
Many community members expressed concern about drug use in schools and the rise in overdose deaths, citing research conducted by the Centers for Disease Control and Prevention and recent tests conducted by the New Mexico Environment Department on wastewater at 24 public high schools in Albuquerque and Rio Rancho. U.S. Attorney Uballez educated community members on the dangers of fentanyl—from masquerading as prescription pills, to its highly addictive properties, to how many other drugs, including marijuana, may be laced with fentanyl. Principal Michele Torres and teacher Carolyn Brown emphasized that the parents’ relationship with their children will make all the difference in preventing drug use and overdose deaths.
School Resource Officer Augustine Sena closed the meeting by speaking of his own connections to this community, and his commitment to the safety and success of all students at West Mesa.
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