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20 December 2023
Portage Man Charged with International Telemarketing Fraud That Targeted Elderly VictimsRead the Press Release
The scheme operated for years and victimized seniors across the United States
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced an indictment charging Irfan Gill, 62, of Portage, Michigan, with 7 counts of mail fraud and 11 counts of money laundering. The indictment alleges that beginning as early as June 2018, and continuing through at least March 2022, Gill worked with a call center in Pakistan as part of a telemarketing fraud scheme that targeted elderly victims across the United States.
“As we have alleged, defendant Irfan Gill ran an international network to exploit America’s seniors,” said U.S. Attorney Mark Totten. “These scams are not going away and so we need to remain vigilant. Be cautious when you receive an unsolicited contact or offer. Resist the pressure to act quickly. Never send personally identifiable information or anything of value to unverified people or businesses. Combatting elder fraud and abuse is a top priority for my Office and we will continue to hold perpetrators accountable, whether at home or abroad.”
VIDEO: U.S. Attorney Totten’s remarks concerning the case can be viewed here.
Gill faces up to 30 years in prison if convicted of a telemarketing fraud that targeted or victimized 10 or more people over the age of 55. He faces up to 20 years in prison for the money laundering charges in the indictment.
According to allegations in the indictment, Gill claimed to operate several businesses: Cable Upgrade; D Network; D Tech; Direct Network; Dish; Dish Upgrade; and Sky Satellite. Telephone solicitors at a call center in Pakistan cold-called victims with offers of equipment upgrades, software upgrades, and subscription discounts for their cable television, satellite television, and internet services. While the businesses did not actually provide any of those services, callers instructed victims to send payments to Gill’s post office boxes in Portage. Gill deposited victims’ payments in his bank accounts. Gill tracked victims’ payments and used money transfer services like Remitly and Western Union to pay a portion of the proceeds to the telephone solicitors in Pakistan. The U.S. Attorney’s Office presently believes that the scheme victimized over 1,400 people nationwide.
“Postal Inspectors are dedicated to safeguarding the well-being and security of the American public, with a particular focus on protecting the elderly and vulnerable individuals, from fraudulent schemes,” said Inspector in Charge Rodney M. Hopkins of the Detroit Division of the U.S. Postal Inspection Service. “Today’s indictment serves as a stark reminder of the exploitation tactics employed by criminals who prey on the elderly and other susceptible individuals through deceptive telemarketing schemes, with the sole intention of extracting as much money as possible and, in some cases, causing irreversible financial damage to their victims. The U.S. Postal Inspection Service remains resolute in its mission to vigorously investigate and apprehend those responsible for perpetrating these telemarketing scams, thereby putting an end to their illicit activities.”
The U.S. Attorney’s Office and the U.S. Postal Inspection Service are working to identify other individuals, nationwide, who may have been victimized by sending payments to the post office boxes listed below for any of the listed businesses:
Post Office Boxes
P.O. Box 122, Portage, Michigan 49024
P.O. Box 404, Portage, Michigan 49024
P.O. Box 421, Portage, Michigan 49024
P.O. Box 482, Portage, Michigan 49024
P.O. Box 1164, Portage, Michigan 49024
P.O. Box 1562, Portage, Michigan 49024
Businesses
Cable Upgrade
D Network
D Tech
Direct Network
Dish
Dish Upgrade
Sky Satellite
If you believe you are a victim in this case, please visit this page or contact Kathy Schuette, Victim Coordinator, at (616) 808-2034.
Federal law enforcement provides a number of tips on how to protect yourself from telemarketing scams, including:
- Be cautious of unsolicited phone calls, e-mails, and mailings.
- Never give or send any sensitive information (including your date of birth, account numbers, or passwords), credit or debit card numbers, or money to unverified people or businesses.
- Resist the pressure to act quickly. Scammers create a false sense of urgency to lure people to immediate action.
- If you recognize a scam attempt, immediately end all communication with the perpetrator.
This case is being investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Adam Townshend is prosecuting the case on behalf of the United States.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law
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Pilot Involved in Cocaine Trafficking Scheme Sentenced to 4 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RONIER SANCHEZ ALONSO, 47, of Naucalpan, Mexico, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 48 months of imprisonment for his role in a cocaine trafficking conspiracy.
According to court documents and statements made in court, Sanchez conspired with others to transport approximately 1700 kilograms of cocaine from South America to the U.S. On August 6, 2016, Sanchez and Rupert De Las Casas flew a private jet, which was registered in the U.S., from the Dominican Republic to Venezuela where the cocaine was to be loaded onto the jet. De Las Casas was the pilot and Sanchez was the co-pilot. From Venezuela, the jet was to fly to Honduras where the cocaine would be loaded onto trucks for transport through Mexico into the U.S. A fake flight plan filed with Dominican authorities reported that the plane was traveling to Brazil. The plane crash-landed just short of a landing strip in Venezuela. Sanchez, De Las Casas and another co-conspirator evaded capture by Venezuelan authorities, and the cocaine was diverted back to Colombia.
On December 14, 2016, a grand jury in Bridgeport returned an indictment charging Sanchez and others with conspiracy to possess with intent to distribute five kilograms or more of cocaine on board an aircraft registered in the U.S. Sanchez has been detained since he was arrested in Asuncion, Paraguay, on March 25, 2021. He was extradited to the U.S. in July 2022 and, on August 1, 2023, pleaded guilty to the offense.
De Las Casas, who last resided in Florida, pleaded guilty and is detained while awaiting sentencing.
Another co-conspirator, Arrinson De La Cruz, who had worked at an airport in the Dominican Republic and helped to coordinate the travel of the jet through the airport uninterrupted, was charged separately for his role in this scheme and other drug trafficking activity. De La Cruz, a citizen of the Dominican Republic who had resided in Wolcott, Connecticut, pleaded guilty and, on November 20, 2019, was sentenced to 144 months of imprisonment.
This investigation was conducted by the Drug Enforcement Administration New Haven Task Force, which includes members from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments. The DEA Country Office in Paraguay, Interpol and the Paraguayan National Police have assisted the investigation.
U.S. Attorney Avery thanked the U.S. Department of Justice’s Office of International Affairs and the U.S. State Department for coordinating the extradition proceedings in this matter, the U.S. Marshals Service for managing the defendant’s safe transport from Paraguay to the U.S., and the Paraguay Attorney General’s Office for its assistance with the extradition.
This case is being prosecuted by Assistant U.S. Attorney Rahul Kale through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Northern Nevada Man Sentenced to Prison for Assaulting A Tribal Police OfficerRead the Press Release
RENO – A Northern Nevada resident was sentenced Tuesday by United States District Judge Larry R. Hicks to 63 months in prison to be followed by three years of supervised release for assaulting a law enforcement officer with a dangerous weapon.
In September 2023, a jury convicted Gelasio Johnson Guerrero (36) of two counts of assault with a dangerous weapon within Indian Country.
According to court documents, on July 10, 2022, Guerrero assaulted a tribal law enforcement officer with a firearm and metal object while on the Walker River Indian Reservation. As a result of the assault, the Walker River Tribal Police Department officer suffered a gunshot wound to the leg.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI investigated the case. Assistant United States Attorneys Andrew Keenan and Penelope Brady prosecuted the case.
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North Carolina Man Admits Role in International Market Manipulation Scheme Related to New Jersey DeliRead the Press Release
CAMDEN, N.J. – A North Carolina man today admitted orchestrating a large-scale market manipulation scheme related to two publicly traded companies, U.S. Attorney Philip R. Sellinger announced.
James Patten, 64, of Winston-Salem, North Carolina, pleaded guilty before U.S. District Judge Christine P. O’Hearn to securities fraud and conspiracy to commit securities fraud.
According to documents filed in this case and statements made in court:
From 2014 through September 2022, Patten, along with co-defendants Peter Coker Sr., and Peter Coker Jr., conspired to enrich themselves through a scheme to manipulate securities prices via a pattern of coordinated trading, which injected inaccurate information into the marketplace, creating false impressions of supply and demand for these securities.
As part of the securities fraud scheme, the defendants targeted two publicly traded companies – Hometown International Inc. and E-Waste Corp. – which were both traded on the OTC Link Alternative Trading System, also known as the OTC Marketplace. The OTC Marketplace is an alternative trading system that contains three tiers of markets, which are largely based on the quality and quantity of the listed companies’ information and disclosures.
Patten, Coker Sr., and Coker Jr. took steps to gain control of both entities’ management and stock with the ultimate intention of entering reverse mergers, a transaction through which an existing public company merges with a private operating company. A successful reverse merger would allow the defendants to sell shares of each entity at a significant profit.
In or around 2014, two New Jersey residents began the process of opening a local deli in Paulsboro, New Jersey. One of the individuals discussed his interest in opening the deli with Patten, a long-time friend, who suggested the creation of Hometown International, an umbrella corporation, under which the deli would operate as a wholly owned subsidiary. Unbeknownst to the deli owners, after Hometown International was formed, Patten and his associates began positioning Hometown International as a vehicle for a reverse merger that would yield substantial profit to them.
Around October 2019, Hometown International began selling shares on the OTC Marketplace. Shortly thereafter, Patten, Coker Sr., and Coker Jr. undertook a calculated scheme to gain control of Hometown International’s management and its shares from the deli owners. Patten, Coker Sr., and Coker Jr. took similar actions to gain control of E-Waste Corporation’s stock and management.
Once the defendants gained control of Hometown International and E-Waste’s shares, they arranged for the transfer of millions of shares of stock to a number of nominee entities, including entities controlled by Coker Jr., in an effort to mask their control of the shares.
The defendants transferred shares to family members, friends, and associates and gained control over their trading accounts by obtaining their log-in information in order to conceal the defendants’ involvement. The defendants then used those accounts to commit a number of coordinated trading events, often referred to as match and wash trades, to trade in Hometown International and E-Waste Corp.’s stock on both sides of the transaction.
These tactics artificially inflated the price of Hometown International and E-Waste’s stock by giving the false impression that there was a genuine market interest in the stock. Their scheme had the ultimate impact of artificially inflating Hometown International’s stock by 939 percent and E-Waste’s stock by 19,900 percent.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. The conspiracy to commit securities fraud carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense whichever is greatest. Sentencing is scheduled for April 23, 2024.
U.S. Attorney Sellinger credited special agents of the FBI’s Philadelphia Division, under the direction of Special Agent in Charge Wayne A. Jacobs; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation. He also thanked special agents from FBI Charlotte, FBI Los Angeles, FBI San Francisco, FBI Denver, and FBI Knoxville, for their assistance.
The government is represented by Assistant U.S. Attorneys Lauren E. Repole, Deputy Chief of the Economic Crimes Unit, and Shawn P. Barnes, Chief of the OCDETF/Narcotics Unit.
The charges and allegations contained in the indictment against Coker Sr. and Coker Jr. are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
patten.indictment.pdfNigerian National Arrested in Connection with Inheritance Fraud SchemeRead the Press Release
A Nigerian national was arrested at Washington Dulles International Airport on Dec. 7 and arraigned today in Miami in connection with an inheritance fraud scheme.
Amos Prince Okey Ezemma, 50, of Lagos, Nigeria, faces federal charges in Miami. His co-defendants, Ezennia Peter Neboh, Kennedy Ikponmwosa, Iheanyichukwu Jonathan Abraham, 44, Emmanuel Samuel, 39, and Jerry Chucks Ozor, 43, of London, were all previously arrested in April 2022 by authorities in Madrid and London. Ezemma remained a fugitive until his surrender and arrest.
“Schemes that prey on the elderly are particularly insidious,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department’s Consumer Protection Branch will pursue and prosecute transnational criminals who defraud U.S. consumers, wherever they are located. I thank the Kingdom of Spain, including the Spanish National Police and the Ministry of Justice and our law enforcement partners in the United Kingdom and in Nigeria, for their tireless efforts in assisting U.S. authorities to find and arrest this fugitive so that he may face charges here in the United States.”
According to court documents, Ezemma is alleged to have operated an inheritance fraud scheme. Over the course of more than five years, he allegedly sent personalized letters to elderly consumers in the United States. The letters falsely claimed that the sender was a representative of a bank in Spain and that the recipient was entitled to receive a multimillion-dollar inheritance left for the recipient by a family member who purportedly had died years before in Spain. Ezemma allegedly told a series of lies to consumers including that, before they could receive their purported inheritance, they were required to send money for delivery fees and taxes and instructed to make other payments. Ezemma allegedly collected money sent in response to the fraudulent letters through a complex web of U.S.-based former victims, whom the defendants convinced to receive money and forward to the defendants or persons associated with them. According to the indictment, victims who sent money never received any purported inheritance funds.
“The U.S. Postal Inspection Service has a long tradition of protecting citizens from these types of schemes and bringing those responsible to justice,” said Postal Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS) Miami Division. “This arrest is a testament of the dedicated partnership between the Justice Department’s Consumer Protection Branch, Homeland Security Investigations (HSI) and the U.S. Postal Inspection Service, to protect our citizens from these scams.”
“The arrest of the final defendant brings us one step closer to ensuring that those who conned elderly victims for pure financial greed are brought to justice,” said Special Agent in Charge Scott Brown of HSI Arizona. “This recent arrest demonstrates the tenacity of HSI and our law enforcement partners to target offenders wherever they may live to answer for their crimes.”
Ezemma is charged with conspiracy to commit mail and wire fraud, as well as mail fraud and wire fraud. Ezemma was arraigned yesterday before U.S. Magistrate Judge Jacqueline Becerra of the U.S. District Court for the Southern District of Florida. He has been detained pending trial. If convicted, Ezemma faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Five other defendants have already been convicted and sentenced in connection with this scheme. On Nov. 1, the Honorable Kathleen M. Williams sentenced Neboh, who was extradited from Spain, to 128 months in prison. On Oct. 20, Judge Williams sentenced another defendant who was also extradited from Spain, Ikponmwosa, to 97 months in prison. Three other defendants who were extradited from the United Kingdom also received prison sentences. Judge Williams sentenced Samuel, Ozor and Abraham to 82 months in prison, 87 months in prison and 90 months in prison, respectively, for their roles in the scheme.
The Consumer Protection Branch, USPIS and HSI are investigating the case.
Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorneys Josh Rothman and Brianna Gardner of the Civil Division’s Consumer Protection Branch are prosecuting the case. The Justice Department's Office of International Affairs, U.S. Attorney’s Office for the Southern District of Florida and the Department of State's Diplomatic Security Service at the U.S. Consulate in Lagos, Nigeria, all provided critical assistance.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Information about the Justice Department’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
New Orleans Man Sentenced for Possessing Firearm as a Convicted FelonRead the Press Release
NEW ORLEANS, LA – DAJUAN MARTIN, age 24, of New Orleans, was sentenced today by U.S. District Judge Wendy B. Vitter to thirty-three (33) months imprisonment, three (3) years of supervised release and payment of a $100 mandatory special assessment fee after previously pleading guilty to possessing a firearm as a convicted felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), announced United States Attorney Duane A. Evans.
According to court documents, MARTIN was arrested on June 13, 2022, by New Orleans Police Department officers for driving a stolen scooter. When MARTIN fled from officers, he discarded a loaded Glock, 9millimeter handgun. MARTIN had previously been convicted in 2017 and 2018 for illegal carrying of a weapon. These convictions prohibited his possession of a firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. The case is being prosecuted by Special Assistant U.S. Attorney Nick Rayburn of the Violent Crimes Unit.
New Orleans Man Pleads Guilty to Trafficking Fentanyl and HeroinRead the Press Release
NEW ORLEANS, LOUISIANA – RODNEY OFFRAY, age 49, a resident of New Orleans, pleaded guilty on December 19, 2023 before U.S. District Judge Darrel James Papillion to a three-count indictment charging him with distribution of fentanyl and heroin, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C), announced U.S. Attorney Duane A. Evans.
According to court documents, Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents began investigating OFFRAY in July 2023 for narcotics distribution in New Orleans. The ATF used a confidential informant and an undercover agent to conduct three controlled purchases, totaling 125 grams of heroin and fentanyl, from OFFRAY. On October 10, 2023, agents arrested OFFRAY, searched his residence, and located a semi-automatic rifle, 85 grams of heroin, 69 grams of cocaine, 120 fentanyl pills, and 13 grams of crack cocaine.
For Count 1, OFFRAY faces up to twenty years imprisonment, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment. For Counts 2 and 3, OFFRAY faces a statutory mandatory minimum sentence of five years, up to forty years imprisonment, a fine of up to $5,000,000, and at least four years of supervised release following any term of imprisonment. Additionally, OFFRAY faces payment of a $100 mandatory special assessment fee per count.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Nashua Man Indicted for Straw Purchasing FirearmsRead the Press Release
CONCORD – A Nashua man appeared in federal court, after being indicted on firearms charges, U.S. Attorney Jane E. Young announces.
Mikell Baez, 25, was indicted on November 15, 2023 with six counts of making a false statement during the acquisition of a firearm. Baez made an initial appearance in federal court on December 19, 2023, and was released on conditions.
According to the charging document, on six separate occasions between August 3, 2021 and November 5, 2021, Mr. Baez straw purchased eight guns for someone else. He bought the guns from federally licensed firearms dealers in Merrimack, Hudson and Amherst, New Hampshire. Mr. Baez lied on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) form for the purchases when he said he was the actual buyer/transferee of each firearm.
The charges provide for a sentence of up to 10 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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) led the investigation. Assistant U.S. Attorney Aaron Gingrande 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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Multiple defendants named in newly unsealed indictment charging Savannah drug trafficking conspiracyRead the Press Release
SAVANNAH, GA: Multiple defendants have been charged in a partially unsealed 14-count federal indictment alleging their involvement in a drug trafficking conspiracy in the Savannah area. The indictment follows a prior related indictment in which two individuals also are charged in a violent carjacking.
The indictment in USA v. Grant et al. alleges that the defendants conspired starting at least as early as January 2021 to possess and distribute illegal drugs including methamphetamine, cocaine, fentanyl, and marijuana, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. A conviction on the conspiracy charge carries a statutory sentence of up to 20 years in prison, along with substantial fines and penalties, followed by a period of supervised release upon completion of any prison term. There is no parole in the federal system.
“As our law enforcement partners continue to identify, infiltrate and disrupt drug trafficking operations threatening the safety of our community, we remain dedicated to complementing their efforts by holding accountable those involved in these criminal enterprises,” said U.S. Attorney Steinberg.
The indictment charges all of the defendants with Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, Cocaine, Fentanyl, and Marijuana. Three defendants still are being sought.
Those named in the partially unsealed indictment include:
- Tremaine Grant, a/k/a “Trench,” 24, of Savannah;
- Laron Thompson, a/k/a “Hollywood,” 38, of Savannah;
- Tyquian Bowman, a/k/a “Quando Rondo,” 24, of Savannah;
- Donald Davis, a/k/a “Lil’ D,” 29, of Savannah;
- Ty’Sean Davis, a/k/a “Stro,” 21, of Savannah;
- Jarrell Palmer, a/k/a “Rel,” 36, of Pooler, Ga.
Thompson and Grant also face drug distribution charges. Grant and Palmer are charged with Conspiracy to Interfere with Commerce by Robbery, and Grant and Thompson face firearms charges.
The indictment provides notice of forfeiture of seven seized handguns and dozens of rounds of ammunition.
Two additional defendants – Robert Moss, a/k/a “Fat Boy,” 32, and Brandon McCall Williams, a/k/a “Lil’ B,” a/k/a “Dough Boy,” 32, both of Savannah – were already arraigned in connection with a partially unsealed indictment charging them in a related drug-trafficking conspiracy and alleging their involvement in a Sept. 2021 Savannah carjacking in which the victim was shot and wounded. An additional defendant is still being sought.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Agencies investigating the case include the FBI; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Chatham-Savannah Counter Narcotics Team; and the Savannah Police Department. The case is being prosecuted for the United States by Assistant U.S. Attorneys Bradley R. Thompson and Frank M. Pennington II.
Monrovia Man Charged in Federal Grand Jury Indictment with Producing and Distributing Child Sexual Abuse MaterialRead the Press Release
LOS ANGELES – A federal grand jury has charged a San Gabriel Valley man with producing and distributing child sexual abuse material (CSAM) depicting himself sexually abusing a toddler, the Justice Department announced today.
David Lisandro Perez Figueroa, 22, of Monrovia, is charged in a two-count federal grand jury indictment with production of child pornography and distribution of child pornography.
A federal grand jury returned the indictment on Tuesday. Figueroa’s arraignment is scheduled for December 28 in United States District Court in downtown Los Angeles. Figueroa was arrested earlier this month, and a federal magistrate judge on December 6 ordered him jailed without bond.
According to the indictment, Figueroa coerced a 2-year-old child into engaging in sexually explicit conduct with him for the purposed of making a visual depiction of the conduct.
On July 22, Figueroa allegedly distributed the CSAM by sending it on the social media platform X, formerly known as Twitter, in an account linked to Figueroa.
British law enforcement investigating a target in the United Kingdom discovered the X chat logs with CSAM and, soon after, notified federal law enforcement in the United States, according to court documents. Based on this information, federal agents executed a search warrant at Figueroa’s residence on December 5 and arrested him.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, Figueroa would face a mandatory minimum sentence of 15 years in federal prison and a statutory maximum sentence of 50 years in federal prison.
Homeland Security Investigations is investigating this matter.
Assistant United States Attorney Amy E. Pomerantz of the Violent and Organized Crime Section is prosecuting this case.
Monroe County Man Pleads Guilty to Conspiracy to Make Straw Purchases of FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Windall Mitchell, age 34, of East Stroudsburg, Pennsylvania, pleaded guilty on December 18, 2023, before United States District Court Judge Julia K. Munley, to the charge of conspiracy to make false statements in connection with the purchases of multiple firearms from federally licensed firearms dealers.
According to United States Attorney Gerard M. Karam, Mitchell admitted to conspiring with his girlfriend, Yesenia Ramos, age 43, of Stroudsburg, to provide false information to federally licensed firearms dealers regarding the purchases of ten firearms between May 15, 2021 and June 14, 2022 in Monroe County. The firearms were purchased from various federally licensed firearms dealers in Monroe County, including Dunkelberger’s Sports Outfitters in Stroudsburg and Brodheadsville, Pocono Mountain Firearms in Scotrun, The Gun Place in East Stroudsburg, and Lopez Firearms in Pocono Summit. The investigation began after one of the purchased firearms was recovered from another individual by police in New York City.
The charge against the defendants resulted from an investigation conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF) and the Pennsylvania State Police. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities and measuring the results.
The maximum penalty under federal law for conspiring to make false statements to firearms dealers is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Money Laundering Girlfriend of Drug Kingpin Sentenced to over Three Years in PrisonRead the Press Release
DETROIT – What began as a delivery of drugs in a Sony PlayStation box led agents to a stash location in Novi where a drug organization stored more than 30 kilograms of fentanyl and over half a million dollars. Today, the girlfriend of the organization’s California based leader, who laundered the drug money and lived lavishly off the proceeds was sentenced to three years and six months in prison and ordered to forfeit her interest in a laundered home to the United States.
United States Attorney Dawn N. Ison announced the sentence and was joined in the announcement by Charles E. Miller, Special Agent in Charge of the Internal Revenue Service, and Orville O. Greene, Special Agent in Charge of the Drug Enforcement Administration, Detroit Field Division.
Teeauna White, 36, of Moreno Valley, California, conspired with her boyfriend Maurice McCoy to conceal his drug money by setting up multiple businesses and controlling access to the bank accounts. Members of McCoy’s drug organization deposited drug proceeds into the bank accounts and delivered hundreds of thousands of dollars in bulk cash to McCoy and White. Together, McCoy and White reaped the benefits of the drug trade, using the money to fund their lifestyle. McCoy purchased an expensive Porsche Panamera and White bought a Bentley and Mercedes Benz. They used one of McCoy’s relatives to try to conceal their purchase of a home worth more than half a million dollars in Southern California. McCoy and White paid off their house in less than six months by funneling cash from drug sales through a labyrinth of bank accounts. They also used the drug money to buy expensive jewelry, including diamond and gold pendants for themselves and some members of McCoy’s drug organization. White often bragged on social media, posting pictures of her cars, jewelry, and lavish vacations with McCoy. White knew McCoy, who had served 10 years in federal prison for a prior drug trafficking conviction, was a convicted felon when she helped him launder drug money.
DEA and IRS led a drug and money laundering investigation and discovered drug distribution hubs in multiple cities across the U.S., including Novi, Michigan, where the organization stored more than 30 kilograms of fentanyl and over half a million dollars that DEA seized. At the time, it was the largest fentanyl seizure in Michigan and one of the largest in the U.S. The seizure was the result of agents’ creative investigative work, after they traced a UPC code off a Sony PlayStation box that was used to deliver heroin to a drug customer. That UPC code led to the Novi condominium where the PlayStation was active. Agents identified couriers who crisscrossed the U.S. delivering kilograms, transporting bulk currency, or laundering money, leading to multiple arrests and additional seizures in Indianapolis and Baltimore, where the organization also operated.
Of the 18 defendants charged, only White and Robin Herndon, a relative who she and McCoy used to purchase their home, went to trial. The remaining defendants, including couriers, large-scale drug customers, and McCoy himself, pleaded guilty. White and Herndon were convicted by a jury in July 2023. After the verdict, White took to social media to threaten the witnesses who had testified at trial. Her bond was immediately revoked, and she spent nearly four months in jail awaiting her sentence.
“Money launderers are an essential, but often unseen, part of the drug trade. Their relative anonymity allows money launderers to profit handsomely from the drug business, while avoiding the more significant risks of drug dealing. But they help drug dealers access and enjoy the proceeds of a crime that poisons our communities. Money launderers should be held accountable and punished commensurately with the importance of their role in drug trafficking, and we will do our part by ensuring they are aggressively prosecuted,” stated United States Attorney Dawn Ison.
“IRS Criminal Investigation special agents work tirelessly in narcotics investigations to follow the money so we can financially disrupt and dismantle major drug trafficking organizations,” said Charles Miller IRS Criminal Investigation, Special Agent in Charge, Detroit Field Office. “We will not only seek to hold those accountable who traffic in drugs, but also those who help them hide or launder the illicit proceeds of these crimes that are destroying our communities. We are proud to work hand-in-hand with our law enforcement partners to bring these criminals to justice.”
“As drug traffickers and money launderers become more sophisticated and creative in the way in which they ply their trade, the DEA and our partners will endeavor to work smarter to hold them accountable. People who knowingly conspire to launder drug proceeds will also be held accountable for the harm they inflict on our communities” said Special Agent in Charge Orville O. Greene.
The investigation of the case was conducted by the Organized Crime Drug Enforcement (OCDETF) Southeast Regional Strike Force. Assistant United States Attorneys Andrea Hutting, Craig Wininger, and Gjon Juncaj prosecuted the case for the United States.
Missouri Husband and Wife Sentenced for Possessing Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge Catherine D. Perry on Wednesday sentenced a man from Jefferson County, Missouri to nine years in prison for possessing and sharing child pornography with his wife.
Judge Perry also ordered David John Dohrman to pay $6,000 in restitution to victims who appeared in the images. Judge Perry sentenced Dohrman’s wife, Jacquelin Michelle Dohrman, to seven years in prison last month.
David Dohrman, 52, and Jacquelin Dohrman, now 49, pleaded guilty in June to one count of possession of child pornography.
David Dohrman admitted searching for and downloading child pornography and sending a video containing child sexual abuse material to his wife on Oct. 1, 2020. The couple shared child pornography in chats and discussed a young girl they’d seen in a restaurant. The video they shared resulted in a tip from Facebook to the National Center for Missing and Exploited Children. A St. Louis County Police Department detective then obtained a court-approved search warrant for the Dohrman’s home.
The St. Louis County Police Department, the Jefferson County Sheriff’s Office and the FBI investigated the case. Assistant U.S. Attorney Jillian Anderson 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 Department of Justice 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 www.justice.gov/psc.
Missoula man admits distributing child pornographyRead the Press Release
MISSOULA — A Missoula man admitted today to trading videos and images of child pornography with others on social media sites, U.S. Attorney Jesse Laslovich said.
Nicholas Geoffrey Combs, 28, pleaded guilty to distribution of child pornography. Combs faces a mandatory minimum of five years to 20 years in prison, a $250,000 fine and not less than five years to life of supervised release.
U.S. District Judge Donald W. Molloy presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for April 17, 2024. Combs was detained pending further proceedings.
In court documents, the government alleged that in June 2022, Snapchat reported to the National Center for Missing and Exploited Children (NCMEC) that a Snapchat user had uploaded two videos of minors engaged in sexually explicit content to its service. A law enforcement investigation determined that the Snapchat account belonged to Combs and that he had sent two videos of minors engaged in sexually explicit content to another Snapchat user. Combs admitted to an investigator to trading videos and images of minors engaged in sexually explicit content with other users on social media sites, including Reddit and Snapchat. Combs also admitted he was sexually attracted to minors, that he had solicited and received sexually explicit pictures from children with whom he interacted online and that he sometimes pretended to be a child to solicit the images. Law enforcement seized Combs’ electronic devices and determined that they contained thousands of images and videos of child pornography.
Assistant U.S. Attorney Brian C. Lowney is prosecuting the case. The Missoula Police Department conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Mississippi Man Sentenced to 18 Months in Federal Prison on Medicare Fraud Conspiracy ChargesRead the Press Release
NASHVILLE – Vernon Sanders, 57 of Meridian, Mississippi, was sentenced yesterday to 18 months in federal prison followed by 3 years of supervised release, as well as restitution of more than $3.3 million, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee. Sanders also was ordered to forfeit $383,260. In December 2020, Sanders pleaded guilty to a one-count Information charging him with conspiracy to defraud the United States and to violate the Anti-Kickback Statute through the payment and receipt of illegal health care kickbacks between 2016 and 2020.
Sanders was the owner of the marketing company FastScripts, LLC, and a patient broker who referred Medicare beneficiaries to laboratories in exchange for the payment of kickbacks. Sanders paid marketers kickbacks to recruit Medicare patients to provide their Medicare information and genetic material, which Sanders then sent to laboratories for Cancer genomic (“CGx”) testing in exchange for the payment of kickbacks from the laboratories. Sanders also paid kickbacks to doctors for signed orders for CGx tests, without regard for the medical necessity of the tests. Sanders was aware that these tests had been obtained through kickbacks, including kickbacks he paid to Individual 1, a co-conspirator physician in Loretto, Tennessee. In December 2020, Individual 1 pleaded guilty to conspiracy to commit health care fraud in the Middle District of Tennessee, and was also sentenced to 18 months in prison.
As a result of Sanders’ participation in the conspiracy, Medicare paid laboratories approximately $3,381,434 in reimbursements they were not entitled to receive because the patients had been procured through kickbacks, including orders signed by the physician in Loretto. From approximately June 2016 to January 2020, Sanders received approximately $383,260 in illegal kickback payments from laboratories and other marketing co-conspirators.
“Genetic testing fraud schemes bilk the Medicare system out of millions of dollars and trick Medicare beneficiaries into providing their personal information and genetic material,” said United States Attorney Henry C. Leventis. “In these national fraud schemes, marketers, like the defendant, together with unscrupulous doctors and laboratories, exploit vulnerable citizens as well as our federal health care programs. We remain committed to rooting out and prosecuting such crimes.”
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Sarah K. Bogni prosecuted the case.
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Members of Bronx Crew Charged with Conducting Round-The-Clock Drug Operation Across the Street from A SchoolRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment today charging three members of a Bronx-based narcotics trafficking organization with conspiring to distribute narcotics and with possessing firearms in furtherance of the narcotics trafficking conspiracy. BRYANT ESTEVEZ, a/k/a “Smack,” and TEREL BYERS, a/k/a “Rell,” a/k/a “Raff,” were arrested yesterday and will be presented today before U.S. Magistrate Judge Stewart D. Aaron. A third defendant, JOHNNY MONTEDEOCA, a/k/a “Chi,” remains at large. This case is assigned to U.S. District Judge Victor Marrero.
U.S. Attorney Damian Williams said: “As alleged, the defendants took over an apartment building in the Bronx and used it to sell fentanyl, heroin, and other drugs, and carried guns to protect their operation. Worse still, they allegedly peddled these incredibly dangerous substances mere feet from a grade school. Today’s arrests make abundantly clear that this level of disregard for the safety and well-being of the communities in this district will not be tolerated. Thanks to the work of law enforcement and the prosecutors of this Office, these defendants now face serious federal penalties.”
NYPD Commissioner Edward A. Caban said: “Today’s charges exemplify the NYPD’s efforts to eliminate illegal drugs and guns from New York City neighborhoods – especially in the vicinity of our schools. I commend our dedicated NYPD investigators and everyone involved in this case from the office of the U.S. Attorney for the Southern District because safeguarding our children will always be at the forefront of our shared public safety mission.”
As alleged in the Indictment unsealed today in Manhattan federal court and in other court filings:[1]
From at least in or about February 2023 through at least in or about December 2023, ESTEVEZ, BYERS, and MONTEDEOCA were part of a narcotics trafficking organization that sold drugs and firearms in the Bronx. This organization (the “Concord Avenue Crew”) operated principally out of a residential building (the “Building”) located on Concord Avenue in the Bronx across the street from an elementary and middle school. The Concord Avenue Crew sold drugs — including fentanyl-laced heroin, crack cocaine, and powder cocaine — from the Building at all hours of the day and night, seven days a week. These sales were conducted, among other places, on the sidewalk in front of the Building; through the window of a street-level apartment in the Building; and inside a side entrance to the Building. The Concord Avenue Crew’s narcotics trafficking operation caused drug customers to line up on the street outside the Building, interfered with residents’ access to the Building, and prompted repeated complaints to the NYPD by residents and by parents whose children attended school across the street.
Members of the Concord Avenue Crew routinely carried firearms in connection with their narcotics trafficking operation, including by carrying firearms on their persons and storing them in areas where they were stashing and selling narcotics. On multiple occasions, members of the Concord Avenue Crew also sold firearms to undercover officers.
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ESTEVEZ, 25, of the Bronx, New York; BYERS, 21, of the Bronx, New York; and MONTEDEOCA, 34, of the Bronx, New York, are each charged with conspiracy to distribute and possess with intent to distribute 40 grams and more of mixtures and substances containing a detectable amount of fentanyl and mixtures and substances containing detectable amounts of heroin, cocaine base, and cocaine. This charge carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison. Each of the defendants is also charged with possessing firearms in furtherance of the narcotics trafficking offense charged in the Indictment, which carries a mandatory minimum sentence of five years in prison, which must be served consecutively to any other sentence imposed, and a maximum sentence of life in prison.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Williams praised the outstanding investigative work of the NYPD and thanked the Office of the New York State Attorney General for its assistance.
The prosecution of this case is being handled by the Office’s Violent & Organized Crime Unit and Narcotics Unit. Assistant U.S. Attorneys Patrick R. Moroney and Alexandra S. Messiter are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Member of Baltimore “Triple C” Gang Sentenced to 25 Years in Federal Prison for a Racketeering Conspiracy, Including Murders and Attempted MurdersRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Raekwon McMann, age 26, of Baltimore, yesterday to 25 years in federal prison, followed by five years of supervised release, for a racketeering conspiracy, including two murders and two attempted murders, related to his participation in the violent street gang known as Cruddy Conniving Crutballs or Triple C. Triple C operated throughout Baltimore City.
The sentence was announced United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Commissioner Richard Worley of the Baltimore Police Department.
According to McMann’s plea agreement and other court documents, Triple C members engaged in a pattern of criminal racketeering activity between 2015 and 2020, including more than a dozen murders and numerous non-fatal shootings, robberies, and carjackings, in order to promote the reputation of Triple C and to command respect from the neighborhood. Other spin-offs of the gang are “SCL” and recently, “TRD.”
As detailed in the plea agreement, the gang benefitted financially from selling narcotics, murdering drug dealers, taking contract killings, and engaging in street robberies. Triple C members also robbed dice games for cash and occasionally carjacked vehicles. Members divided the proceeds of illegal activities among those who participated in the crimes, and often contacted each other to commit a robbery if a member needed money.
Triple C members routinely used social media to identify and locate victims and to communicate with each other and share information concerning possible retaliation for violent crimes committed by gang members. Triple C members and associates used at least 14 firearms to commit crimes, often trading with each other or other groups to avoid detection through ballistic evidence. Details of the crimes committed by Triple C members were publicized on social media and thus were well-known to CCC members. Members of Triple C often critiqued each other after committing crimes regarding ways to improve their performance.
McMann admitted that he was present at two murders during which at least one member of the Triple C conspiracy discharged a firearm, including the murder of Darius Mason on July 29, 2018, and the murder of Larry Matthews on April 22, 2019. In addition, McMann was present at two attempted murders on February 24, 2019 and April 14, 2019. McMann liked to boast about his association with Triple C on social media and what members would do for each other. McMann frequently appeared in social media posts with other Triple C members, many times with firearms. McMann also admitted that as part of his activities with Triple C, he distributed controlled substances, including crack cocaine. McMann also knew that a victim could be murdered or show during the course of the conspiracy.
This investigation has led to the guilty pleas of 34 members and associates of Triple C, including Correy Cawthorn, one of the gang’s leaders. Cawthorn, age 25, of Baltimore, is scheduled to be sentenced on January 4, 2024, at 10:00 a.m.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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 make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is 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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in this investigation and thanked the United States Marshals Service and the Office of the Baltimore City State’s Attorney for their assistance in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorney Patricia C. McLane and Michael C. Hanlon, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/project-safe-neighborhoods-psn.
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Massachusetts Man Sentenced to 42 Years in Federal Prison for 2020 Kidnapping and MurderRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that BRANDON BATISTE, also known as “B,” 36, last residing in Chicopee, Massachusetts, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 504 months of imprisonment, followed by five years of supervised release, for kidnapping and murdering another Massachusetts man in 2020.
According to court documents and statements made in court, on December 24, 2020, Batiste and Calvin Roberson, also known as “Cutty,” kidnapped Francisco Roman, Jr., 28, at gunpoint from a residence in Chicopee, Massachusetts. Batiste and Roberson threatened to harm Roman if he did not comply with their orders, handcuffed him, and stole cash, marijuana, and other items from Roman. Batiste and Roberson forced Roman into the rear of Roman’s 2010 Acura ZDX, and transported Roman and the other stolen property to Connecticut. Batiste shot and killed Roman while the car was en route to Hartford. They then drove the car to Shultas Place in Hartford and left it parked on the street.
Shortly before 9 p.m. on December 26, 2020, Hartford police and fire personnel responded to Shultas Place and found the car engulfed in flames. After the fire was extinguished, investigators discovered Roman’s body with multiple gunshot wounds in the rear of the vehicle.
Batiste has been detained since his arrest on February 11, 2021. On June 30, 2023, he pleaded guilty to conspiracy to commit kidnaping, and causing the death of a person through the use of a firearm.
Roberson pleaded guilty to the same charges on April 27, 2023, and is detained while awaiting sentencing.
This investigation was conducted by the FBI’s Northern Connecticut Gang Task Force, FBI’s Springfield Gang Task Force, Massachusetts State Police, Hampden County (Mass.) District Attorney’s Office, Hartford Police Department’s Major Crimes Division, Chicopee Police Department and Springfield Police Department, with the assistance of the Waterbury Police Department and the FBI’s Atlanta Field Office.
This case is being prosecuted by Assistant U.S. Attorney Angel M. Krull and Trial Attorney Brian P. Leaming of the Justice Department’s Violent Crime and Racketeering Section.
U.S. Attorney Avery thanked the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the District of Massachusetts for their assistance in this matter.
Man Sentenced to Federal Prison for Assault on the Warm Springs Indian ReservationRead the Press Release
PORTLAND, Ore.—On December 19, 2023, a Warm Springs, Oregon man was sentenced to federal prison for brutally assaulting a woman with a piece of firewood inside a residence on the Warm Springs Indian Reservation.
Devere Ben Charley, 24, was sentenced to 40 months in federal prison and three years’ supervised release.
According to court documents, on November 29, 2022, officers from the Warm Springs Tribal Police Department (WSPD) responded to a report of an assault that had occurred inside a residence on the Warm Springs Indian Reservation. In the residence, the officers located an adult victim lying on a couch with severe injuries to her head, face, and hand. The victim told the officers that Charley had been drinking and had assaulted her. The victim’s daughter observed her injured mother while monitoring a home security camera online away from the residence. The daughter further observed Charley throw a piece of bloody firewood into a stove.
The adult victim was transported to a local hospital where she was treated for a broken nose, fractured arm, multiple lacerations, and a concussion. The victim later required a blood transfusion due to the significant blood loss from wounds on her head and face.
On December 6, 2022, a federal grand jury in Portland returned an indictment charging Charley with one count of assault resulting in serious bodily injury. Later, on February 8, 2023, a second charge, assault with a dangerous weapon, was added by superseding indictment.
On September 29, 2023, Charley pleaded guilty to one count of assault with a dangerous weapon.
This case was investigated by the FBI with assistance from WSPD. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Man Sentenced to 90 Months in Prison for Selling Fentanyl that Killed St. Charles Mother of ThreeRead the Press Release
ST. LOUIS – A man who supplied the fentanyl that killed a St. Charles, Missouri mother, leaving her three young children alone for over 15 hours, was sentenced Wednesday to 90 months in prison.
U.S. District Judge Audrey E. Fleissig also ordered Valentino Terez Carpenter, 39, of Maryland Heights, to pay $8,665 in funeral expenses for the victim.
The victim was found dead on the couch in her home on June 21, 2022, with a capsule containing fentanyl nearby, after the cries of her children alerted a neighbor. The woman’s children, ages 2, 4 and one month, had been alone for at least 15 hours after their mother’s death.
Carpenter pleaded guilty in September to one count of distribution of fentanyl and admitted selling two capsules containing drugs to the victim for $10. He also admitted that the victim was killed by a fentanyl overdose.
On Wednesday, Judge Fleissig said it was “beyond dispute” that Carpenter sold fentanyl to the victim, and that the sale resulted in her death. Judge Fleissig also said that Carpenter knew that fentanyl was “extremely dangerous,” as is the sale of the drug. He knew people who had died and warned the victim not to split a pill that he sold her because it was so potent.
Judge Fleissig said Carpenter left the victim alone after knowing that she was nodding off due to the effects of the drug and knowing there was no one else to care for the children. She called it an “extremely, extremely tragic case.”
The case was investigated by the Drug Enforcement Administration, the St. Charles Police Department and the St. Charles County Regional Drug Task Force.
Man Sentenced for Fentanyl Drug Trafficking ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that Kelvin Baez-Adames, 32, of Bronx, New York, was sentenced December 20, 2023, in federal court in Omaha, Nebraska for his participation in a fentanyl drug conspiracy. United States District Judge Brian C. Buescher sentenced Baez-Adames to 120 months’ imprisonment. There is no parole in the federal system. After Baez-Adames release from prison, he will begin a 5-year term of supervised release.
From August 2021 to May 4, 2022, Baez-Adames and co-defendant Kiara Jimenez ran an online company to sell M-30 pills utilizing Bitcoin. The M-30 pills were counterfeit and contained fentanyl. The Drug Enforcement Administration in Omaha began its undercover operation after pills were seized in Nebraska with the moniker “THEMESSIAH11.”
An undercover address was utilized to purchase pills online from THEMESSIAH11. DEA purchased 60 blue pills later identified as fraudulent M-30 pills containing fentanyl. The pills were sent in a Crunch N’ Munch box to prevent detection. The DEA set up another purchase and the tracking number for the order was from the Bronx, New York. This package contained more fentanyl pills hidden in another Crunch N’ Munch box. Surveillance was conducted in the Bronx and codefendant Kira Jimenez was observed leaving the defendant’s apartment to deliver 10 packages. The packages were intercepted by DEA and all contained fentanyl inside Crunch N’ Munch boxes. On May 4, 2022, law enforcement executed a search warrant on the defendant’s apartment in the Bronx. Law enforcement seized fentanyl pills, drug paraphernalia and several cases of Crunch N’ Munch. Baez-Adames is responsible for one kilogram of fentanyl analogue.
Kiara Jimenez pled guilty to fentanyl drug conspiracy and will be sentenced on January 24, 2024.
This case was investigated by the Drug Enforcement Administration.
Man Pleads Guilty to Aggravated Sexual AbuseRead the Press Release
HUNTSVILLE, Ala. – A man pleaded guilty today to traveling to Alabama with intent to engage in a sexual act with a child younger than 12, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton L. Peeples.
Mark Anthony Bedwell, 53, of Lowestoft, England, pleaded guilty before U.S. District Court Judge Madeline H. Haikala to aggravated sexual abuse: crossing the state line with the intent to engage in a sexual act with a child under 12. According to court documents, Bedwell travelled from the United Kingdom to Huntsville, Alabama, in May 2013 and engaged in a sex act with a child in Madison County. The maximum penalty for the charge is life in prison.
Charles Dunnavant, 37, of Huntsville, Alabama, previously pled guilty on June 16, 2015, to the same charge in a related case before U.S. District Court Judge Madeline H. Haikala. Dunnavant was sentenced to 435 months imprisonment.
If you suspect or become aware of possible sexual exploitation of a child, please contact law enforcement. To alert the FBI Birmingham Office, call 205-326-6166. Reports can also be filed with the National Center for Missing & Exploited Children (NCMEC) or online at www.cybertipline.org.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The FBI investigated the case, along with the United Kingdom’s Metropolitan Police Service and the North Rhein-Westfalia Landeskriminalamt, a German law enforcement agency. The Huntsville Police Department assisted in the investigation. Assistant U.S. Attorneys Mary Stuart Burrell and John M. Hundscheid are prosecuting the case. Assistant U.S. Attorney J.B. Ward assisted with extradition efforts.
Man Accused of Phelps County Carjacking and Gun Store BurglaryRead the Press Release
ST. LOUIS – A Missouri man appeared in U.S. District Court in St. Louis Tuesday and pleaded not guilty to charges related to a carjacking and a gun store burglary in Phelps County, Missouri.
Martavious Jones, 19, of Phelps County, was indicted September 27 on one carjacking charge and a charge of stealing a firearm from a federally licensed dealer. Jones pleaded not guilty Tuesday.
The indictment accuses Jones of stealing a 2013 Nissan Altima on March 1, 2023, in Phelps County, Missouri. It also accuses him of stealing firearms from a Rolla gun store on Sept. 11, 2022.
A motion seeking to have Jones held in jail until trial says two men took four guns, including an AR-style pistol, as well as a large quantity of ammunition and firearm accessories from the store.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The carjacking charge carries a penalty of up to 15 years in prison, a fine of up to $250,000 or both prison and a fine. The stealing charge carries a penalty of up to five years in prison, a $250,000 fine, or both.
The Rolla Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
Luzerne County Man Sentenced to 66 Months’ Imprisonment for Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Casey Read, age 40, of Wilkes-Barre, Luzerne County, was sentenced on December 19, 2023, by U.S. District Court Judge Robert D. Mariani, to 66 months’ imprisonment on the charge of conspiracy to distribute more than 40 grams of fentanyl.
According to United States Attorney Gerard M. Karam, Read previously pleaded guilty and admitted to obtaining between 40 grams and 160 grams of fentanyl from coconspirators Eric Hill, age 34, of Plymouth, and Candacelee Ellis, age 37, also of Plymouth, which Read then distributed in the Luzerne County area between 2019 and 2020. Hill, Ellis and Read were indicted by a grand jury in August 2020 for fentanyl trafficking.
Previously, Judge Mariani sentenced Eric Hill to serve ten years’ imprisonment and Candacelee Ellis to serve 30 months’ imprisonment for conspiring to distribute fentanyl in the Luzerne County area.
The charge against the defendants resulted from an investigation conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Kingston Police Department, the Luzerne County Drug Task Force, and the Pennsylvania State Police. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Love Park Carjacker Sentenced to Ten YearsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Michael Boyer, 31, of Philadelphia, Pennsylvania was sentenced to 10 years in prison and three years of supervised release by United States District Court Judge Timothy J. Savage for carjacking.
On May 22, 2022, the defendant used a realistic-looking BB gun with a laser sight to carjack two men sitting in a car next to Love Park in Philadelphia. Evidence introduced at trial showed the defendant told the two men to leave the keys in the car and further stated “Do you want to get shot?” when one victim tried to grab a backpack. The victim identified the defendant, in part, because he was shirtless during the carjacking and had a large “Uptown” tattoo on his chest.
Only twelve hours later, Philadelphia Police officers located the defendant and his accomplice driving the stolen car in West Philadelphia. When officers tried to stop them, the two men led police on a high-speed chase that ended when the men crashed after striking a teenager on a bicycle. The two men were arrested after a foot chase following the crash.
“Today's sentencing sends a message to would be carjackers and reaffirms our ongoing commitment to keeping our citizens safe,” said U.S. Attorney Romero. "This carjacking at Love Park garnered a great deal of attention, and equally worthy of attention is the resulting ten-year sentence that will be served by Michael Boyer in federal prison. We will continue working with our partners and proudly serving as part of the joint carjacking task force led by the Philadelphia Police Department in making sure violent individuals are held accountable when they threaten the safety of the community.”
“The crimes committed by the defendant were reckless and dangerous. The defendant not only threatened an individual with bodily harm, but he also led the Police on a vehicle pursuit in which the defendant struck an innocent teenager riding their bicycle” said ATF Special Agent in Charge Eric DeGree. “I want to thank the Philadelphia Police Department and the United States Attorney’s office for their continuing support of the Carjacking Task Force and bringing the defendant to justice.”
The case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Special Assistant United States Attorney Brian Doherty and Assistant United States Attorney Christopher E. Parisi.
Lincoln Man Sentenced to 14 Years for Distributing MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Scott A. Berndt, 54, of Lincoln, Nebraska, was sentenced on December 20, 2023, in federal court in Lincoln for conspiracy to distribute methamphetamine. Senior United States District Court Judge John M. Gerrard sentenced Berndt to 14 years’ imprisonment. There is no parole in the federal system. After Berndt’s release from prison, he will begin a 5-year term of supervised release.
From November 2020 to May 2021, Berndt and others arranged to have large quantities of meth sent by mail to the Lincoln, Nebraska area. Postal records show at least ten shipments delivered to Lincoln which were believed to have contained meth, and which weighed between 1.69 pounds to over 11 pounds. Berndt and others then broke those shipments down into smaller quantities and resold the meth they received to others in Lincoln. Police also uncovered money transfer records where Berndt sent money to people in Arizona during that same period. Berndt pleaded guilty to his offense on April 17, 2023.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Justice Department and Consumer Financial Protection Bureau sue Texas-based developer and lender Colony Ridge for bait-and-switch land sales and predatory financingRead the Press Release
HOUSTON – The Justice Department and Consumer Financial Protection Bureau (CFPB) have sued Colony Ridge for operating an illegal land sales scheme and targeting tens of thousands of Hispanic borrowers with false statements and predatory loans.
“Today’s complaint alleges that Colony Ridge targeted Hispanic consumers with predatory loans, misled borrowers about the water, sewer and electrical infrastructure on its lots, and exploited language barriers by conducting most of its marketing in Spanish while offering important transaction documents only in English,” said Attorney General Merrick B. Garland. “Discrimination in lending harms families and neighborhoods for generations; it is wrong and has no place in our country. That is why I launched the Department’s Combating Redlining Initiative more than two years ago and why we remain steadfast in our commitment to continue this work.”
“Using 21st century social-media applications to target and mislead consumers, Colony Ridge set out to exploit something as old as America — an immigrant’s dream of owning a home,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “As alleged in the complaint, Colony Ridge’s exploitative practice began with misleading advertising on platforms like TikTok and often ended with families facing economic ruin, no home, and shattered dreams. The SDTX, joined by our partners at the Justice Department’s Civil Rights Division and the CFPB, filed the complaint as a promise to work tirelessly to bring justice for the Hispanic families who fell prey to Colony Ridge’s alleged predatory lending practices and to send out a warning to the vulnerable: beware of lenders who use promises of easy financing to steal both nest-eggs and dreams.”
The lawsuit filed in federal district court alleges Colony Ridge sells unsuspecting families flood-prone land without water, sewer or electrical infrastructure, and that the company sets borrowers up to fail with loans they cannot afford. Roughly one-in-four Colony Ridge loans ends in foreclosure, after which the company repurchases the properties and sells them to new borrowers. The Justice Department and CFPB are seeking redress for borrowers Colony Ridge harmed and an immediate end to its illegal practices.
“Colony Ridge promised the American dream, but we allege that in reality, it has delivered a nightmare for thousands of hardworking Hispanic families who hoped to build their homes in the Terrenos Houston community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This lawsuit demonstrates our commitment to holding accountable those in the housing and financial industry who intentionally target and exploit homebuyers because they are Hispanic or don’t speak English well. Through our Combating Redlining Initiative, the Justice Department will aggressively continue to dismantle predatory, deceptive, and unfair lending practices to safeguard the rights of all who seek to buy a home.”
“The lawsuit filed in federal court by the CFPB and the Justice Department charges Colony Ridge with a slew of illegal misconduct and seeks to stop this set-up-to-fail scheme that has led thousands of families to lose their dreams of homeownership,” said CFPB Director Rohit Chopra. “Our investigation uncovered that Colony Ridge is baiting borrowers with lies, saddling families with predatory loans for homesites that the company knows have repeatedly flooded with raw sewage and lacked basic utility infrastructure.”
The lawsuit names as defendants three Texas-based Colony Ridge affiliate companies as well as Loan Originator Services, a nonbank mortgage company licensed to originate loans in Texas. Colony Ridge has developed more than 40,000 lots spread across an unincorporated area of Liberty County, approximately 30 miles northeast of Houston. Colony Ridge markets these subdivisions using the names “Terrenos Houston” and “Terrenos Santa Fe.”
According to the complaint, Colony Ridge targets Spanish-speaking borrowers. It advertises almost exclusively in Spanish, often in TikTok or other social media posts featuring, for example, national flags and regional music from Latin America. In these advertisements, Colony Ridge promises consumers the dream of homeownership with its own seller financing: an easy-to-obtain loan product that requires no credit check and only a small deposit.
The complaint further alleges Colony Ridge has lured tens of thousands of vulnerable Hispanic consumers into their predatory loan products. Foreclosure and property deed records from September 2019 through September 2022 show that Colony Ridge initiated foreclosures on at least 30% of seller-financed lots within just three years of the purchase date, with most loan failures occurring even sooner. Records also confirm that Colony Ridge accounted for more than 92% of all foreclosures recorded in Liberty County between 2017 and 2022.
Specifically, the complaint filed today alleges that Colony Ridge:
- Misleads borrowers about infrastructure on the lots it sells: Colony Ridge has falsely represented that lots in the Terrenos Houston subdivisions were sold with water, sewer and electrical infrastructure already in place. The complaint cites numerous advertisements including TikTok videos where the company makes claims like “Terrenos Houston tiene todos los servicios de ciudad por cada terreno” (“Terrenos Houston has all city services for each lot”). It is only after applicants pay a non-refundable deposit that Colony Ridge discloses the properties may not provide those services and makes that disclosure only in English.
- Sells lots that flood with rain and raw sewage: The complaint alleges that Colony Ridge employees fail to inform borrowers of flood risk when lots have repeatedly flooded in the past or falsely tells them the lots have not flooded. In fact, in parts of the Terrenos Houston subdivision, rain causes significant flooding causing raw sewage to run through or around borrowers’ property and damaging their personal belongings.
- Targets Hispanic consumers with predatory loans: Through direct-to-consumer marketing on websites, social media engagement, and telemarketing, Colony Ridge targets Hispanic consumers. Colony Ridge then exploits language barriers during its sales process and uses high-pressure sales tactics to push borrowers to obtain their loan product quickly. The loans have exorbitant interest rates. Between 2017 and 2021, interest rates on Colony Ridge’s loans ranged from between 10.9% to 12.9%, while a standard 20-year fixed rate loan averaged 2.35% to 4.05% during the same timeframe. And in extending the loan, Colony Ridge and Loan Originator Services did not collect information needed to determine if applicants can afford the loan.
- Churns through borrowers in a cycle of foreclosure: When families fall behind on payments and enter foreclosure, it allows Colony Ridge to “flip” the properties by repurchasing and reselling them, often at higher prices. Foreclosure and property deed records show that Colony Ridge flipped at least 40% of all the properties it sold between September 2019 and September 2022, selling approximately 8,237 properties twice, 3,267 properties three times and 2,067 properties four or more times in three years.
- Exploits language barriers at borrowers’ expense: While Colony Ridge conducts most of its marketing activities in Spanish, when it comes to the actual transaction it offers important documents only in English. Failing to offer borrowers accurate translations of contracts, deeds and other documents in the language in which it conducts the sales and exploiting borrowers’ limited English proficiency violates federal law.
Enforcement Action
The complaint alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Fair Housing Act (FHA). Under the FHA, the Justice Department has the authority to take enforcement action against real estate companies, lending institutions and other entities whose practices discriminate in residential real estate-related transactions, the availability of housing and housing-related services. The complaint also alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B. Both the Justice Department and CFPB have the authority to enforce ECOA. Additionally, the complaint alleges defendants’ deceptive acts and practices violate the Consumer Financial Protection Act of 2010 (CFPA) and the Interstate Land Sales Full Disclosure Act (ILSA) and its implementing regulations, Regulation K and Regulation J, all of which CFPB enforced.
The complaint seeks to stop Colony Ridge’s alleged unlawful conduct, provide relief for affected consumers and impose a civil penalty payable to the CFPB victims relief fund. If the defendants are found liable, the amount of any restitution will be determined in the litigation in federal court.
Anyone who believes they have been harmed by the practices of Colony Ridge Development LLC, Colony Ridge BV LLC, Colony Ridge Land LLC and Loan Originator Services LLC should call the Justice Department’s Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, then 3 for fair lending and then 1 for Colony Ridge Lawsuit to leave a message. For the Spanish Hotline, callers should press 2 for Spanish, then 3 for fair lending and then 1 for Colony Ridge Lawsuit to leave a message. Individuals can also send an email to [email protected].
This lawsuit is a part of the Justice Department’s Combating Redlining Initiative. Redlining is the illegal practice where lenders deprive communities of color from equal access to loans and lending opportunities. Reverse redlining occurs when lenders target communities of color with inflated interest rates and/or other unjust lending terms. Both practices prevent communities of color from achieving sustainable homeownership and both deny these communities the opportunity to build wealth.
The Combating Redlining Initiative is the Justice Department’s most aggressive and coordinated enforcement effort to address all forms of redlining. Since 2021, the Justice Department’s Combating Redlining Initiative has secured over $100 million and 10 settlement agreements with banks and mortgage lending institutions to provide credit opportunities to communities of color in Houston; Memphis, Tennessee; Philadelphia; Camden, New Jersey; Wilmington, Delaware; Newark, New Jersey; Los Angeles; Columbus, Ohio; Tulsa, Oklahoma; Rhode Island; and Jacksonville, Florida. The Department has partnered with U.S. Attorneys’ Offices, federal financial regulatory agencies, including the CFPB and state Attorneys General offices to enforce federal fair lending laws that prohibit redlining. This lawsuit is the first reverse redlining action under the initiative.
Read today’s complaint.
The Justice Department’s website has resources about fair lending. The Department accepts complaints of discrimination at www.civilrights.justice.gov/. Fair housing and lending discrimination complaints may also be sent to [email protected].
CFPB’s website has resources about credit discrimination and mortgages. Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372). Employees of companies who they believe their company has violated federal consumer financial laws are encouraged to send information about what they know to [email protected].
Justice Department and Consumer Financial Protection Bureau Sue Texas-Based Developer and Lender Colony Ridge for Bait-and-Switch Land Sales and Predatory FinancingRead the Press Release
The Justice Department and Consumer Financial Protection Bureau (CFPB) today sued Colony Ridge, a Texas-based developer and lender, for operating an illegal land sales scheme and targeting tens of thousands of Hispanic borrowers with false statements and predatory loans.
“Today’s complaint alleges that Colony Ridge targeted Hispanic consumers with predatory loans, misled borrowers about the water, sewer, and electrical infrastructure on its lots, and exploited language barriers by conducting most of its marketing in Spanish while offering important transaction documents only in English,” said Attorney General Merrick B. Garland. “Discrimination in lending harms families and neighborhoods for generations, it is wrong, and it has no place in our country. That is why I launched the Department’s Combating Redlining Initiative more than two years ago and why we remain steadfast in our commitment to continue this work.”
The lawsuit filed in federal district court alleges Colony Ridge sells unsuspecting families flood-prone land without water, sewer, or electrical infrastructure, and that the company sets borrowers up to fail with loans they cannot afford. Roughly one-in-four Colony Ridge loans ends in foreclosure, after which the company repurchases the properties and sells them to new borrowers. The Justice Department and CFPB are seeking redress for borrowers harmed by Colony Ridge and an immediate end to its illegal practices.
“Colony Ridge promised the American dream, but we allege that in reality, it has delivered a nightmare for thousands of hardworking Hispanic families who hoped to build their homes in the Terrenos Houston community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This lawsuit demonstrates our commitment to holding accountable those in the housing and financial industry who intentionally target and exploit homebuyers because they are Hispanic or don’t speak English well. Through our Combating Redlining Initiative, the Justice Department will aggressively continue to dismantle predatory, deceptive, and unfair lending practices to safeguard the rights of all who seek to buy a home.”
“The lawsuit filed in federal court by the CFPB and the Justice Department charges Colony Ridge with a slew of illegal misconduct and seeks to stop this set-up-to-fail scheme that has led thousands of families to lose their dreams of homeownership,” said CFPB Director Rohit Chopra. “Our investigation uncovered that Colony Ridge is baiting borrowers with lies, saddling families with predatory loans for homesites that the company knows have repeatedly flooded with raw sewage and lacked basic utility infrastructure.”
“Using 21st century social-media applications to target and mislead consumers, Colony Ridge set out to exploit something as old as America — an immigrant’s dream of owning a home,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “As alleged in the complaint, Colony Ridge’s exploitative practice began with misleading advertising on platforms like TikTok and often ended with families facing economic ruin, no home, and shattered dreams. The SDTX, joined by our partners at the Justice Department’s Civil Rights Division and the CFPB, filed the complaint as a promise to work tirelessly to bring justice for the Hispanic families who fell prey to Colony Ridge’s alleged predatory lending practices and to send out a warning to the vulnerable: beware of lenders who use promises of easy financing to steal both nest-eggs and dreams.”
The lawsuit names as defendants three Texas-based Colony Ridge affiliate companies, as well as Loan Originator Services, a nonbank mortgage company licensed to originate loans in Texas. Colony Ridge has developed more than 40,000 lots spread across an unincorporated area of Liberty County, Texas, approximately 30 miles northeast of Houston. Colony Ridge markets these subdivisions using the names “Terrenos Houston” and “Terrenos Santa Fe.”
According to the complaint, Colony Ridge targets Spanish-speaking borrowers: it advertises almost exclusively in Spanish, often in TikTok or other social media posts featuring, for example, national flags and regional music from Latin America. In these advertisements, Colony Ridge promises consumers the dream of homeownership with its own seller financing: an easy-to-obtain loan product that requires no credit check and only a small deposit.
The complaint further alleges that Colony Ridge has lured tens of thousands of vulnerable Hispanic consumers into their predatory loan products. Foreclosure and property deed records from September 2019 through September 2022 show that Colony Ridge initiated foreclosures on at least 30% of seller-financed lots within just three years of the purchase date, with most loan failures occurring even sooner. Records also confirm that Colony Ridge accounted for more than 92% of all foreclosures recorded in Liberty County between 2017 and 2022.
Specifically, the complaint filed today alleges that Colony Ridge:
-
Misleads borrowers about infrastructure on the lots it sells: Colony Ridge has falsely represented that lots in the Terrenos Houston subdivisions were sold with water, sewer, and electrical infrastructure already in place. The complaint cites numerous advertisements, including TikTok videos where the company makes claims like “Terrenos Houston tiene todos los servicios de ciudad por cada terreno” (“Terrenos Houston has all city services for each lot”). It is only after applicants pay a non-refundable deposit that Colony Ridge discloses the properties may not provide those services and makes that disclosure only in English.
-
Sells lots that flood with rain and raw sewage: The complaint alleges that Colony Ridge employees fail to inform borrowers of flood risk when lots have repeatedly flooded in the past, or falsely tells them the lots have not flooded. In fact, in parts of the Terrenos Houston subdivision, rain causes significant flooding, causing raw sewage to run through or around borrowers’ property, and damaging their personal belongings.
-
Targets Hispanic consumers with predatory loans: Through direct-to-consumer marketing on websites, social media engagement, and telemarketing, Colony Ridge targets Hispanic consumers. Colony Ridge then exploits language barriers during its sales process and uses high-pressure sales tactics to push borrowers to obtain their loan product quickly. The loans have exorbitant interest rates. Between 2017 and 2021, interest rates on Colony Ridge’s loans ranged from between 10.9% to 12.9%, while a standard 20-year fixed rate loan averaged 2.35% to 4.05% during the same timeframe. And in extending the loan, Colony Ridge and Loan Originator Services did not collect information needed to determine if applicants can afford the loan.
-
Churns through borrowers in a cycle of foreclosure: When families fall behind on payments and enter foreclosure, it allows Colony Ridge to “flip” the properties by repurchasing and reselling them, often at higher prices. Foreclosure and property deed records show that Colony Ridge flipped at least 40% of all the properties it sold between September 2019 and September 2022, selling approximately 8,237 properties twice, 3,267 properties three times, and 2,067 properties four or more times in three years.
-
Exploits language barriers at borrowers’ expense: While Colony Ridge conducts most of its marketing activities in Spanish, when it comes to the actual transaction it offers important documents only in English. Failing to offer borrowers accurate translations of contracts, deeds, and other documents in the language in which it conducts the sales and exploiting borrowers’ limited English proficiency violates federal law.
Enforcement Action
The complaint alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Fair Housing Act (FHA). Under the FHA, the Justice Department has the authority to take enforcement action against real estate companies, lending institutions, and other entities whose practices discriminate in residential real estate-related transactions, the availability of housing, and housing-related services. The complaint also alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Equal Credit Opportunity Act (ECOA), and its implementing regulation, Regulation B. Both the Justice Department and CFPB have the authority to enforce ECOA. Additionally, the complaint alleges defendants’ deceptive acts and practices violate the Consumer Financial Protection Act of 2010 (CFPA) and the Interstate Land Sales Full Disclosure Act (ILSA) and its implementing regulations, Regulation K and Regulation J, all of which is enforced by CFPB.
The complaint seeks to stop Colony Ridge’s alleged unlawful conduct, provide relief for affected consumers, and impose a civil penalty payable to the CFPB victims relief fund. If the defendants are found liable, the amount of any restitution will be determined in the litigation in federal court.
Anyone who believes they have been harmed by the practices of Colony Ridge Development LLC, Colony Ridge BV LLC, Colony Ridge Land LLC, and Loan Originator Services LLC should call the Justice Department’s Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, then 3 for fair lending, and then 1 for Colony Ridge Lawsuit to leave a message. For the Spanish Hotline, callers should press 2 for Spanish, then 3 for fair lending, and then 1 for Colony Ridge Lawsuit to leave a message. Individuals can also send an email to [email protected].
This lawsuit is a part of the Justice Department’s Combating Redlining Initiative. Redlining is the illegal practice where lenders deprive communities of color from equal access to loans and lending opportunities. Reverse redlining occurs when lenders target communities of color with inflated interest rates and/or other unjust lending terms. Both practices prevent communities of color from achieving sustainable homeownership and both deny these communities the opportunity to build wealth.
The Combating Redlining Initiative is the Justice Department’s most aggressive and coordinated enforcement effort to address all forms of redlining. Since 2021, the Justice Department’s Combating Redlining Initiative has secured over $100 million and 10 settlement agreements with banks and mortgage lending institutions to provide credit opportunities to communities of color in Houston; Memphis, Tennessee; Philadelphia; Camden, New Jersey; Wilmington, Delaware; Newark, New Jersey; Los Angeles; Columbus, Ohio; Tulsa, Oklahoma; Rhode Island; and Jacksonville, Florida. The Department has partnered with U.S. Attorneys’ Offices, federal financial regulatory agencies, including the CFPB, and state Attorneys General offices to enforce federal fair lending laws that prohibit redlining. This lawsuit is the first reverse redlining action under the initiative.
The Justice Department’s website has resources about fair lending. The Department accepts complaints of discrimination at www.civilrights.justice.gov/. Fair housing and lending discrimination complaints may also be sent to [email protected].
CFPB’s website has resources about credit discrimination and mortgages. Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372). Employees of companies who they believe their company has violated federal consumer financial laws are encouraged to send information about what they know to [email protected].
colony_ridge_complaint.pdf-
Justice Department Announces Terrorism Charges Against High-Ranking Hezbollah Member Who Helped Plan 1994 Bombing in Buenos Aires, ArgentinaRead the Press Release
Samuel Salman El Reda Participated in Terrorist Operations for Hezbollah in South America, Asia and Lebanon, and Helped Plan and Execute Hezbollah’s July 18, 1994, Bombing of the Asociación Mutual Israelita Argentina Building in Buenos Aires, Killing 85 People
A Manhattan federal court today unsealed terrorism charges against Samuel Salman El Reda, aka Samuel Salman El Reda El Reda, Salman Raouf Salman, Sulayman Rammal, Salman Ramal, Salman Raouf Salman, and Hajj, 58, a dual Colombian-Lebanese citizen and member of Hezbollah’s Islamic Jihad Organization (IJO), in connection with El Reda’s alleged role leading decades of terrorist activity on behalf of Hezbollah and the IJO.
El Reda is charged with, among other offenses, conspiring to provide and providing material support to Hezbollah, a designated foreign terrorist organization. El Reda is based in Lebanon and remains at large.
“Nearly three decades ago, long-time Hezbollah 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,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “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.”
“As alleged, for decades, Samuel Salman El Reda has led terrorist operations on behalf of the Islamic Jihad Organization of Hezbollah, including a 1994 bombing in Buenos Aires that massacred 85 innocent victims,” said U.S. Attorney Damian Williams for the Southern District of New York. “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.”
“While it’s been nearly 30 years since this horrific terrorist attack, the FBI and our partners throughout the U.S. government are committed to delivering justice for the victims’ families,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Our reach and our memory are long, as this investigation shows. The charges unsealed today are a result of the hard work and determination of the men and women of the FBI and Justice Department, and the assistance of our international partners in law enforcement.”
According to court documents, Hezbollah is a Lebanon-based Shia Islamic organization with political, social and terrorist components. Hezbollah 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 Hezbollah’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 Department of State designated Hezbollah 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 Department of the Treasury designated Hezbollah as a Specially Designated Global Terrorist entity. In 2010, State Department officials described Hezbollah 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 Hezbollah responsible for the planning and coordination of intelligence, counterintelligence and terrorist activities on behalf of Hezbollah 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 Hezbollah 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, which killed 85 people and injured hundreds more. El Reda’s activities for Hezbollah 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 Hezbollah’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 Hezbollah 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 is charged with: (i) providing material support to a designated foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to provide material support to a designated foreign terrorist organization, which carries a maximum penalty 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 penalty 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 penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York Police Department, is investigating the case. The Justice Department’s Office of International Affairs provided valuable assistance.
Assistant U.S. Attorneys Jacob H. Gutwillig and Jason A. Richman for the Southern District of New York are prosecuting the case, with valuable assistance from Deputy Chief Larry Schneider of the National Security Division’s Counterterrorism Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
El Reda IndictmentJury Finds District Man Guilty of Second-Degree Murder in 2018 Stabbing in SoutheastRead the Press Release
WASHINGTON – Marquette Jordan, 32, of Washington, D.C., was found guilty by a jury on December 19, 2023 of second-degree murder while armed and other charges in the April 2018 fatal stabbing of 48-year-old Ivan Lynch in Southeast D.C., announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD). The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Rainey Brandt will sentence Jordan on Friday March 1, 2024.
According to the government’s evidence, on April 30, 2018, the victim, Ivan Lynch, who had just attended a birthday celebration for himself, left the party and was going to meet up with a friend at his apartment. On the way to the friend’s apartment, Mr. Lynch picked up the defendant Marquette Jordan, the defendant’s girlfriend, the girlfriend’s two young children, and a childhood friend of the defendant.
Once inside the apartment, a verbal altercation occurred between Jordan and his girlfriend in front of her two young children. Mr. Lynch intervened and reportedly told the defendant that that is not how we treat women. Jordan and Mr. Lynch then engaged in a verbal dispute resulting in a physical fight between the two men inside the apartment. During the fight, Jordan grabbed a butcher knife from the kitchen and stabbed Mr. Lynch once in the shoulder, twice in the heart, and three times in the back. After stabbing Mr. Lynch, Jordan then continued to beat on his girlfriend, threatened to kill her, too, and charged at her with a knife. The girlfriend grabbed a pillow and fled the apartment without her shoes, and leaving behind her minor children until she returned later that day.
The defendant went through the victim’s pockets before leaving the apartment. School surveillance captured Jordan on walking with the two children after the homicide. He was stopped outside by MPD officers shortly after leaving the apartment and law enforcement officers found Mr. Lynch’s keys and his blood on Jordan’s pants and shirt. The murder weapon, the butcher knife, was never recovered. Officers also found Mr. Lynch’s cell phone discarded in an area where the defendant was observed walking, according to surveillance footage in the area. Mr. Lynch’s wallet was mailed from a nearby school to the address on his driver’s license.
This case was investigated by the Metropolitan Police Department. This case was prosecuted and tried by Assistant U.S. Attorneys Natalie M. Hynum and Omeed A. Assefi of the U.S. Attorney’s Office for the District of Columbia.
Jury Convicts Serial Rapist of Two Counts of Kidnapping with Intent to Commit a Sexual AssaultRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge for the FBI Albuquerque Office, announced today that on December 15, 2023, a federal jury returned two guilty verdicts against Timothy Bachicha, 41 of Albuquerque, after two and a half hours of deliberation. The jury convicted Bachcica of two counts of Kidnapping with Intent to Commit a Sexual Assault. Judge Matthew L. Garcia presided.
A federal grand jury issued a first indictment against Bachicha with Count 1 on July 25, 2019, and added Count 2 on January 29, 2020. According to evidence presented at trial and other publicly available court records, on October 30, 2018, Bachicha observed Jane Doe 1 walking down a residential street in Northeast Albuquerque. He stopped his vehicle and asked her if she wanted a ride. When Jane Doe 1 declined, he forcibly abducted her, pulling her into his vehicle by her neck. Once in the vehicle, Bachicha drove from the area of San Mateo and Indian School to a dirt lot near the UNM Cancer Center just east of Interstate 25. There, Bachicha held Jane Doe 1 for twenty hours while he strangled and sexually assaulted her. He released her the early afternoon of October 31, 2018, after receiving alerts that the battery on his court-ordered GPS monitor was dying.
Following news coverage of this crime, Jane Doe 2 came forward to disclose that, weeks earlier, she had been held for sixteen hours by Bachicha in a semi-truck in Albuquerque near Interstate 25 and Comanche Road. During the attack, Bachicha strangled Jane Doe 2 and sexually assaulted her. Bachicha’s GPS monitor confirmed his presence at the location and time described by Jane Doe 2.
Both women fought Bachicha during their attacks, and both testified against him in trial. The jury also heard from two other women who suffered similar attacks by Bachicha in 2017 and 2018.
“Bachicha targeted vulnerable women, hoping that the public would not believe them or care,” said U.S. Attorney Uballez. “But everyone deserves to be treated with dignity. We believe survivors of sexual assault, no matter their station in life, and will fight for the safety of the least of our brothers and sisters. These four women, some of whom were targeted because they were sex workers, courageously testified against their abuser in open court, and in doing so protected others from Bachicha’s serial sexual violence. These women stood up for each other, and for all of us, and for that have earned our respect and gratitude.”
“The FBI depends on our partnerships to help us protect communities,” said FBI Special Agent in Charge Raul Bujanda. “We will continue to work with our partners at every level to take those responsible for such heinous crimes off our streets.”
Bachicha will remain in custody pending sentencing, which has not been scheduled. At sentencing, Bachicha faces up to two life sentences.
The Federal Bureau of Investigation adopted and continued the investigation of this case following extensive investigation by the Albuquerque Police Department, with assistance from the Bernalillo County District Attorney’s Office and the New Mexico State Probation and Parole Office. Assistant United States Attorneys Letitia Carroll Simms and Sarah J. Mease are prosecuting the case.
View the Superseding Indictment# # #
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Indictment Charges District Man with First-Degree Murder and Conspiracy in December 2022 Shooting in Northeast D.C.Read the Press Release
WASHINGTON – Jajuan Gripper, 21, of Washington, D.C., was charged by indictment on December 20, 2023, for the December 20, 2022 murder of 34-year-old Rynell Bradford, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).
The indictment charges Gripper with conspiracy, first-degree premeditated murder while armed, possession of a firearm during a crime of violence, and carrying a pistol without a license.
According to the government’s evidence, in the evening on Tuesday, December 20, 2022, Gripper and two unindicted co-conspirators followed Bradford out of an apartment building in Northeast Washington, D.C. The three suspects then opened fire on Bradford as he ran away from them down a public street in a residential neighborhood. Gripper and his co-conspirators fired a total of at least 19 shots, striking Bradford once in the back of the head. Bradford was pronounced dead at the scene.
Gripper was arrested in March 2023 and has been detained pending trial since his arrest.
This case is being investigated by members of MPD’s Homicide Branch. The case is being prosecuted by Assistant U.S. Attorney Charles R. Jones.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indictment Charges District Man in the Murder of 31-Year-Old Tourist Inside Her Ivy City Hotel RoomRead the Press Release
WASHINGTON – George L. Sydnor, Jr., 44 of Washington, D.C., was indicted earlier today by a D.C. Superior Court Grand Jury on several felony charges stemming from the stabbing murder of 31-year-old Christy Bautista on March 31, 2023, inside her room in the Ivy City Hotel, in Northeast D.C., announced U.S. Attorney Matthew M. Graves.
A five-count indictment charges Sydnor with premeditated first degree murder while armed; burglary while armed; first degree felony murder while armed burglary); kidnapping while armed; first degree felony murder while armed (kidnapping). The indictment also charges an aggravating circumstance enhancement as to all five counts, finding that the offenses committed were “especially heinous, atrocious or cruel.” Sydnor is also charged with committing these crimes while he was on release in another criminal case.
An arraignment on the indictment is scheduled for January 4, 2024, at 9:30 am, in Courtroom 301 before the Honorable Judge Robert Okun.
This case was investigated by the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office for the District of Columbia. The case was prosecuted by Assistant United States Attorney Sarah Santiago.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Hudson County Man Sentenced to 70 Months in Prison for Soliciting and Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 70 months in prison for soliciting victims online to send images and videos of child sexual abuse and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
Erick Solis, 25, previously pleaded guilty before retired U.S. District Judge Kevin McNulty to an information charging him with one count of solicitation of child pornography and one count of possession of child pornography. U.S. District Judge Julien X. Neals imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From July 2020 to February 2021, Solis used a social media application to engage victims in sexually explicit conversations. Solis requested that both minor victims take sexually explicit photographs and videos of themselves and send them to him.
In addition to the prison term, Judge Neals sentenced Solis to five years of supervised release.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy, in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Criminal Division of the United States Attorney’s Office in Newark.
Guaynabo Registered Sex Offender Arrested for Receiving and Possessing Child Exploitation MaterialsRead the Press Release
SAN JUAN, Puerto Rico – On December 18, 2023, HSI San Juan special agents assigned to the Puerto Rico Crimes Against Children Task Force (PRCACTF) arrested Marcelino Resto Colón, a 68-year-old male from Guaynabo, who was previously convicted for lascivious acts, and is a registered sex offender in Puerto Rico.
According to court documents, from June 2022 through July 2022, Resto Colón used his computer and cellular phone to receive one or more images of child pornography via the internet depicting minors engaging in sexually explicit conduct. Also, from June 2022 through May 30, 2023, the defendant possessed one or more images and videos which contained images of child pornography. The indictment also states that prior to committing the alleged offenses, Resto Colón was convicted on or about September 12, 2003, in Puerto Rico state court, for abusive sexual conduct involving a minor.
“Those who engage in child exploitation and possess child sexual abuse material will be held accountable for their heinous conduct,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “I commend the prosecution team and our law enforcement partners who continue working tirelessly to ensure that these defendants are be held accountable for their crimes.”
HSI San Juan’s Special Agent in Charge Rebecca González-Ramos stated: “If the allegations presented in this case are true, we are facing an individual who does not demonstrate any regret for his actions. Let this case demonstrates HSI’s commitment to thoroughly investigate these crimes and assure they are sustained in court and proven beyond a reasonable doubt.”
Assistant United States Attorney Ginette L. Milanes of the Child Exploitation and Immigration Unit is prosecuting the case.
If convicted, defendant faces a sentence of at least 15 years up to 40 years of imprisonment for receipt of child exploitation material; and at least10 years up to 20 years of imprisonment for possession of child pornography. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
For more information about HSI’s efforts to protect children from sexual predators, visit https://www.ice.gov/topics/iGuardians; and to report suspicious activities call 787-729-6969.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the 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 www.justice.gov/psc.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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About Homeland Security Investigations
HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of more than 8,700 employees consists of more than 6,000 special agents assigned to 237 cities throughout the United States, and 93 overseas locations in 56 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.
# HSI #
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Two Florida Residents Charged with Money Laundering Conspiracy
Denise Webley, 40, Tamarac, Florida, and Julio Madruga Rosa, 51, Gulf Stream, Florida are charged with participating in a money laundering conspiracy. The indictment alleges that they conspired with others to conduct financial transactions involving the proceeds of an unlawful activity, specifically wire fraud. The indictment alleges that the defendants maintained bank accounts designed to collect and funnel cash proceeds from unlawful activities, and that Webley held Account A and Madruga Rosa held Account B. The indictment further alleges that Webley received a weekly payment for maintaining Account A, and Madruga Rosa received a percentage of the funds laundered through Account B as payment.
The indictment alleges that in November and December 2020, unknown fraud perpetrators used false pretenses to convince employees of businesses in the Western District of Wisconsin and elsewhere, to collect and deliver the businesses’ cash-on-hand to couriers who the fraud perpetrators misrepresented were authorized by the business to receive the funds. The indictment alleges that as part of the conspiracy, in December 2020 in Rib Mountain, Wisconsin, two couriers collected $242,980 in currency from an employee of a retail store. The indictment further alleges that over $233,000 of the fraud proceeds were deposited into Account A, almost immediately were electronically transferred into Account B, and then subsequently transferred out of the United States.
The money laundering charges against Webley and Madruga Rosa are the result of an investigation by the U.S. Department of Homeland Security – Homeland Security Investigations and the Federal Bureau of Investigation. The investigation of the fraud scheme was conducted by these two agencies and the Merrill, Wausau, Everest Metropolitan, Stevens Point, and West Allis Police Departments, the Marathon County Sheriff’s Office, with assistance from the Marathon County District Attorney’s Office. Assistant U.S. Attorney Meredith P. Duchemin is handling this case.
Two Face Charges Related to Contraband in Federal Prison
James Arthur Mallett, 40, formerly of Minneapolis, Minnesota, is charged with possessing a prohibited object while an inmate the Federal Correctional Institution at Oxford, Wisconsin. The indictment alleges that on August 4, 2023, Mallett possessed strips containing Buprenorphine, a narcotic drug. Imogene R. Lawson, 60, Chicago, Illinois, is charged with providing Mallett with the strips containing Buprenorphine on that day.
If convicted, Mallett and Lawson each face a maximum penalty of 20 years in federal prison. The charges against them are the result of an investigation by the Bureau of Prisons and the Federal Bureau of Investigation. Assistant U.S. Attorney William Levins is handling the prosecution.
Gibson Woman Sentenced in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that FLORENCE RANDLE (“F. RANDLE”), age 72, of Gibson, Louisiana, was sentenced on December 13, 2023 after previously pleading guilty to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371.
According to court records, F. RANDLE recruited and directed passengers to participate in staged automobile collisions with tractor-trailers on May 17, 2017 and June 6, 2017. The passengers in these collisions filed fraudulent lawsuits that falsely claimed the tractor-trailers were at fault. F. RANDLE, and her co-conspirators, coordinated with others, including attorney, Patrick Keating, to arrange the staged collisions.
U.S. District Court Judge Jane Triche Milazzo sentenced RANDLE to serve 24 months of probation. RANDLE was ordered to pay $63,508.00 in restitution and a mandatory special assessment fee of $100.00.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, the Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria M. Carboni, Brian M. Klebba, Chief of the Financial Crimes Unit, Assistant U.S. Attorneys’ Maria M. Carboni, Edward Rivera, and former Assistant U.S. Attorney Brandon S. Long, all of the Financial Crimes Unit.
Georgian Sentenced for Armed Drug Trafficking with Machine “Ghost” GunRead the Press Release
COLUMBUS, Ga. – A Columbus resident with a criminal history was sentenced to serve more than 15 years in prison for federal gun and drug offenses, including possessing a privately-made, untraceable machine gun.
Quintavius Harrow aka “Cootie,” 31, of Columbus, Georgia, was sentenced to serve 189 months in prison to be followed by five years of supervised release by U.S. District Judge Clay Land on Dec. 19. Harrow pleaded guilty to one count of possession of a firearm by a convicted felon, one count of possession with intent to distribute methamphetamine, one count of possession of ammunition by a convicted felon and one count of illegal possession of a machine gun on Aug. 15. Harrow is not eligible for parole.
“Quintavius Harrow carried a self-made and untraceable machine gun—a so-called ‘ghost gun’—while distributing methamphetamine, a dangerous combination for the Columbus community,” said U.S. Attorney Peter D. Leary. “Combating gun violence and preventing ghost guns from hitting our streets remains a top priority for the U.S. Attorney’s Office and our law enforcement partners.”
“The FBI, in collaboration with our law enforcement partners, are committed to the safety and security of our community,” said Rich Bilson, Senior Supervisory Resident Agent of FBI Atlanta’s Columbus office. “This plea removes a dangerous career criminal from our streets and lands him in federal prison, without the opportunity for parole.”
“This violent drug trafficker can no longer distribute dangerous drugs, such as methamphetamine, as he now faces the consequences for his poor choices,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
"Quintavius Harrow's possession of a privately-made, untraceable machine gun underscores the urgent need to address the rapid reproduction of such dangerous weapons,” said Columbus Police Chief Stoney Mathis. “This case exemplifies our commitment to public safety and collaborative efforts to combat violent crime. We remain dedicated to our partnership with federal and local agencies and community programs in reducing these threats."
“We will continue to work in collaboration with all law enforcement partners to remove these types of threats from our community for a safer Columbus,” said Muscogee County Sheriff Greg Countryman.
According to court documents, FBI and DEA conducted a controlled purchase of methamphetamine from Harrow using a confidential source (CS) on March 18, 2022. During the transaction, Harrow was filmed in possession of an AR-15 styled pistol and sold the CS two bags containing a total of 498 grams of methamphetamine. On April 26, 2022, Muscogee County Sheriff’s Office (MCSO) Drug and Gang Task force agents executed a search warrant at a trap house located at 813 Coolidge Avenue in Columbus, where Harrow was observed selling methamphetamine to the CS the month prior. Harrow was in the home along with other individuals. Law enforcement found a variety of illegal drugs and several firearms throughout the house. Notably, in a back bedroom, officers located the same AR-15 style pistol Harrow carried on March 18. With no known manufacturer or visible serial number, the AR-15 style pistol had a large capacity magazine and 30 rounds of ammunition. FBI examined the AR-15 style pistol and determined it was a “ghost gun” equipped with an auto sear, which converted the firearm to a machine gun. Ghost guns are untraceable firearms assembled by private individuals from firearm components.
Prior to these incidents, on March 6, 2020, Columbus Police Department (CPD) Special Operation’s unit officers were surveilling the area of Elizabeth Canty Apartments. Officers observed several people standing near a vehicle, including Harrow. Upon approach by officers, Harrow began walking away and then discarded a yellow container containing methamphetamine and a stolen HK 9mm, semi-automatic pistol with an extended magazine. Harrow was taken into custody with a digital scale with marijuana residue and $436 cash in his pocket.
Harrow has a criminal history for robbery by intimidation in Muscogee Co., Georgia, Superior Court and use of a gun with an altered identification mark in Chattahoochee County, Georgia, Superior Court. It is illegal for a convicted felon to possess a firearm.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.
The case was investigated by FBI, DEA, the Muscogee Co. Sheriff’s Office and the Columbus Police Department, with assistance from GBI.
Assistant U.S. Attorney Christopher Williams prosecuted the case for the Government.
Gallatin Man Convicted for December 2019 Violent Crime SpreeRead the Press Release
NASHVILLE - A federal jury convicted Lazavion Kern, 22, of Gallatin, Tennessee, of multiple armed robbery and firearms offenses yesterday, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
During a three-week span in December 2019, Kern robbed four convenience stores in Gallatin and Portland, Tennessee, taking thousands of dollars from the clerks. As part of the final robbery, Kern repeatedly pistol-whipped the clerk, seriously injuring him. Kern was charged by a federal grand jury in January of 2023 with one count of Hobbs Act robbery for each of the four robberies, and two counts of brandishing a firearm during and in relation to a crime of violence. Yesterday, a federal jury convicted him on each count.
“This defendant went on a three-week crime spree, violently attacked an innocent store clerk, and bragged about his actions on social media,” said United States Attorney Henry C. Leventis. “The jury’s verdict ensures that he will be held accountable for those actions and that he will be removed from society for at least 14 years. I commend the excellent work of the trial team, the FBI, and our local law enforcement partners that made this outcome possible.”
“This conviction should send a clear message that the FBI and our law enforcement partners make it a priority to bring to justice those who resort to armed robbery for ill-gotten financial gains,” said Special Agent in Charge Douglas DePodesta of the FBI Memphis Field Office. “Violent crimes will not be tolerated, and law enforcement will not rest, until offenders are caught, prosecuted and held accountable for their actions.”
Kern faces a mandatory minimum sentence of 14 years, and up to life, in federal prison. He will be sentenced by United States District Judge William L. Campbell, Jr.
Kern was aided in each robbery by Antonio Jones and, in the third robbery, by Michael Sanchez Fitts. Jones and Fitts have pleaded guilty to felonies.
This case was investigated by the Federal Bureau of Investigation, the Gallatin Police Department, the Sumner County Sheriff’s Office, and the Portland Police Department. Significant assistance was provided by the United States Marshals Service. Assistant U.S. Attorneys Joseph P. Montminy and Taylor J. Phillips are prosecuting the case.
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Fourteen Members of Major Drug Organization That Trafficked Hundreds of Kilograms of Cocaine and Fentanyl SentencedRead the Press Release
Fourteen members of a major drug organization that trafficked hundreds of kilograms of cocaine and fentanyl in the Charlotte, North Carolina, area and illegally possessed firearms in support of that operation, were sentenced today, following a two-year investigation led by the Drug Enforcement Administration (DEA).
“These sentences are another example of how the Justice Department is targeting the Sinaloa and CJNG cartel networks that are poisoning the American people with fentanyl and fueling violent crime in communities across the country,” said Attorney General Merrick B. Garland. “The cartels are responsible for creating the deadliest drug threat our country has ever faced — we will continue to attack every aspect of their operations, including their associated drug trafficking organizations in the United States.”
“Deadly drugs like fentanyl and the gun violence tied to the drug trade are responsible for shattering families and devastating our communities,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “The prosecution of this trafficking organization with ties to Mexican drug cartels exemplifies our ongoing efforts to disrupt drug networks, reduce drug-induced gun violence, and build strong and safe communities. I want to thank the DEA and all of our law enforcement partners for their exemplary work in this case and for joining forces to combat drug activity and violent crime.”
“Dangerous drugs continue to flow into our communities at the expense of too many lives,” said Special Agent in Charge Robert J. Murphy of the DEA Atlanta Division. “This successful operation has ensured these violent drug traffickers have been taken off our streets, ultimately making the communities safer for everyone.”
According to court documents and court proceedings, from 2017 to 2022, the defendants were members of a large drug trafficking organization (DTO) responsible for distributing hundreds of kilograms of cocaine, fentanyl, and other narcotics in and around the Charlotte area. Information presented in court shows that the DTO had ties to, and was directly supplied from, the Sinaloa and CJNG cartels.
According to court documents and statements made in court, the multi-agency investigation into the DTO included court-authorized wiretaps, controlled purchases of narcotics, extensive surveillance, and the execution of dozens of search warrants, and led to the seizure of large quantities of narcotics, including approximately 328 kilograms of cocaine, 26 kilograms of fentanyl, and a kilogram of heroin. In addition to the narcotics, law enforcement seized approximately 60 firearms, 18 high-capacity magazines and ammunition, more than $2.4 million in cash drug proceeds, over $300,000 in jewelry, two residences, ten vehicles, a boat, and two tractor-trailers with hidden compartments for smuggling narcotics.
United States District Judge Robert J. Conrad sentenced the 14 defendants as follows:
- Salvador Barrera Jr., 28, of Charlotte, was sentenced to 24 years in prison, followed by five years of supervised release.
- Ricardo Johnathan Gomez, 28, of Charlotte, was sentenced to 22.5 years in prison, followed by five years of supervised release.
- Johnny Lane Owens Sr., 46, of Albemarle, North Carolina, was sentenced to 15 years in prison, followed by five years of supervised release.
- Isaac Sandoval, 31, of Salisbury, was sentenced to 12 years in prison, followed by two years of supervised release.
- Adrian Christopher Solares, 33, of Charlotte, was sentenced to 135 months in prison, followed by five years of supervised release.
- Luis Raymundo Macias-Robles, 32, of Charlotte, was sentenced to 121 months in prison, followed by five years of supervised release.
- Norberto Macedo Jr., 29, of Charlotte, was sentenced to 95 months in prison, followed by three years of supervised release.
- Derek Duane Crump, 42, of Albemarle, was sentenced to 77 months in prison, followed by three years of supervised release.
- Christian Alexander Hernandez, 29, of Charlotte, was sentenced to 74 months in prison, followed by five years of supervised release.
- Erik Perales, 28, of Charlotte, was sentenced to 72 months in prison, followed by four years of supervised release.
- Jesus Adrian Perales, 32, of Charlotte, was sentenced to 48 months in prison, followed by three years of supervised release.
- Janquil Josselyn Jackson, 30, of Los Angeles, was sentenced to 37 months in prison, followed by two years of supervised release.
- Christok Alexander Mata, 21, of Charlotte, was sentenced to 36 months in prison, followed by two years of supervised release.
- David George Jansen, 45, of Indian Land, South Carolina, was sentenced to 14 months in prison, followed by three years of supervised release.
The DEA, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshals Service, North Carolina State Highway Patrol, Kansas Highway Patrol, Anderson County, South Carolina, Sheriff’s Office, Cabarrus County Sheriff’s Office, Catawba County Sheriff’s Office, Lincoln County Sheriff’s Office, Stanly County Sheriff’s Office, York County, South Carolina, Sheriff’s Office Drug Enforcement Unit, Albemarle Police Department, Charlotte-Mecklenburg Police Department, Cornelius Police Department, Mint Hill Police Department, Monroe Police Department, Pineville Police Department, and Salisbury Police Department investigated the case.
Assistant U.S. Attorneys Taylor G. Stout and Alfredo De La Rosa for the Western District of North Carolina prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Fourteen Members of A Major Drug Organization That Trafficked Hundreds of Kilograms of Cocaine and Fentanyl SentencedRead the Press Release
CHARLOTTE, N.C. – Fourteen members of a major drug organization that trafficked hundreds of kilograms of cocaine and fentanyl in the Charlotte area and illegally possessed firearms in support of that operation were sentenced today, following a two-year investigation led by the Drug Enforcement Administration (DEA), announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
“These sentences are another example of how the Justice Department is targeting the Sinaloa and CJNG cartel networks that are poisoning the American people with fentanyl and fueling violent crime in communities across the country,” said Attorney General Merrick B. Garland. “The cartels are responsible for creating the deadliest drug threat our country has ever faced -- we will continue to attack every aspect of their operations, including their associated drug trafficking organizations in the United States.”
“Deadly drugs like fentanyl and the gun violence tied to the drug trade are responsible for shattering families and devastating our communities,” said U.S. Attorney King. “The prosecution of this trafficking organization with ties to Mexican drug cartels exemplifies our ongoing efforts to disrupt drug networks, reduce drug-induced gun violence, and build strong and safe communities. I want to thank the DEA and all of our law enforcement partners for their exemplary work in this case and for joining forces to combat drug activity and violent crime.”
“Dangerous drugs continue to flow into our communities at the expense of too many lives. This successful operation has ensured these violent drug traffickers have been taken off our streets, ultimately making the communities safer for everyone,” said Special Agent in Charge Robert J. Murphy of the DEA Atlanta Division.
According to court documents and court proceedings, from 2017 to 2022, the defendants were members of a large drug trafficking organization (DTO) responsible for distributing hundreds of kilograms of cocaine, fentanyl, and other narcotics in and around the Charlotte area. Information presented in court shows that the DTO had ties to, and was directly supplied from, the Sinaloa and CJNG cartels.
According to court documents and statements made in court, the multi-agency investigation into the DTO included court-authorized wiretaps, controlled purchases of narcotics, extensive surveillance, and the execution of dozens of search warrants, and led to the seizure of large quantities of narcotics, including approximately 328 kilograms of cocaine, 26 kilograms of fentanyl, and a kilogram of heroin. In addition to the narcotics, law enforcement seized approximately 60 firearms, 18 high-capacity magazines and ammunition, more than $2.4 million in cash drug proceeds, over $300,000 in jewelry, two residences, ten vehicles, a boat, and two tractor-trailers with hidden compartments for smuggling narcotics.
United States District Judge Robert J. Conrad sentenced the 14 defendants as follows:
- Salvador Barrera Jr., 28, of Charlotte, was sentenced to 24 years in prison, followed by five years of supervised release.
- Ricardo Johnathan Gomez, 28, of Charlotte, was sentenced to 22.5 years in prison, followed by five years of supervised release.
- Johnny Lane Owens Sr., 46, of Albemarle, North Carolina, was sentenced to 15 years in prison, followed by five years of supervised release.
- Isaac Sandoval, 31, of Salisbury, was sentenced to 12 years in prison, followed by two years of supervised release.
- Adrian Christopher Solares, 33, of Charlotte, was sentenced to 135 months in prison, followed by five years of supervised release.
- Luis Raymundo Macias-Robles, 32, of Charlotte, was sentenced to 121 months in prison, followed by five years of supervised release.
- Norberto Macedo Jr., 29, of Charlotte, was sentenced to 95 months in prison, followed by three years of supervised release.
- Derek Duane Crump, 42, of Albemarle, was sentenced to 77 months in prison, followed by three years of supervised release.
- Christian Alexander Hernandez, 29, of Charlotte, was sentenced to 74 months in prison, followed by five years of supervised release.
- Erik Perales, 28, of Charlotte, was sentenced to 72 months in prison, followed by four years of supervised release.
- Jesus Adrian Perales, 32, of Charlotte, was sentenced to 48 months in prison, followed by three years of supervised release.
- Janquil Josselyn Jackson, 30, of Los Angeles, was sentenced to 37 months in prison, followed by two years of supervised release.
- Christok Alexander Mata, 21, of Charlotte, was sentenced to 36 months in prison, followed by two years of supervised release.
- David George Jansen, 45, of Indian Land, South Carolina, was sentenced to 14 months in prison, followed by three years of supervised release.
The DEA, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshals Service, North Carolina State Highway Patrol, Kansas Highway Patrol, Anderson County, South Carolina, Sheriff’s Office, Cabarrus County Sheriff’s Office, Catawba County Sheriff’s Office, Lincoln County Sheriff’s Office, Stanly County Sheriff’s Office, York County, South Carolina, Sheriff’s Office Drug Enforcement Unit, Albemarle Police Department, Charlotte-Mecklenburg Police Department, Cornelius Police Department, Mint Hill Police Department, Monroe Police Department, Pineville Police Department, and Salisbury Police Department investigated the case.
Assistant U.S. Attorneys Taylor G. Stout and Alfredo De La Rosa for the Western District of North Carolina prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Former bank teller sentenced for stealing nearly $90,000 deposited by Georgia convenience storeRead the Press Release
STATESBORO, GA: A former Candler County bank teller has been sentenced to federal prison after pleading guilty to skimming money from a convenience store’s deposits.
Kayla Monroe Evans, 32, of Metter, Ga., was sentenced to two months in prison followed by two months of home confinement after pleading guilty to Bank Fraud, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Evans to pay $97,165 in restitution and to serve five years of supervised release.
“Kayla Evans violated the trust of her employer and its customer, and is being held accountable for her theft,” said U.S. Attorney Steinberg. “This sentence offers assurance that those who commit fraud will be brought to justice.”
As described in court documents and testimony, Evans worked as a teller for the Synovus Bank in Metter, where a local convenience store maintained its account. An auditor for the store began noticing discrepancies between the amount of cash presented to the bank for deposit compared to the amount credited to the store and worked with the bank to determine the cause.
A subsequent investigation found that from July 2019 through February 2021, Evans personally handled the store’s deposits, frequently skimming cash for her personal use from the amount presented and crediting a smaller deposit to the store. In total, Evans stole approximately $87,748 from the convenience store’s deposits. As part of her plea agreement, Evans agreed to pay restitution for the full loss caused by her criminal conduct, and to never seek employment in any financial institution.
“We are pleased to work with the U.S. Attorney’s Office in bringing to justice those who commit bank fraud for their own personal gain,” said Brian Tucker, Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau.
The federal investigation was led by the Office of Inspector General for the Federal Reserve Board and the Consumer Financial Protection Bureau. The investigation received support from the Candler County Sheriff’s Office, the District Attorney’s Office for the Middle Judicial Circuit, and the Georgia Bureau of Investigation. The case was prosecuted for the United States by Assistant U.S. Attorney Matthew A. Josephson.
Former Teacher Pleads Guilty to Sexually Exploiting Children in LaosRead the Press Release
A Massachusetts man pleaded guilty today engaging in sexual acts with three minors in Laos.
According to court documents, Michael Sebastian, 56, of Lynn, taught English to impoverished children in Laos. While teaching children there, Sebastian allowed certain students to live with him in his apartment, and they had to pay “dues.” Students who were unable to pay their dues performed “chores” around the house to earn credit towards their dues payments. One of the “chores” was giving Sebastian a massage while he was naked. Between May 2018 and September 2019, in the course of these massages, Sebastian engaged and attempted to engage in sexual acts with three minors who lived with him.
Sebastian pleaded guilty to three counts of engaging in illicit sexual conduct in a foreign place. He is scheduled to be sentenced on March 28, 2024, and faces a maximum penalty of 90 years in prison and lifetime supervised release. Additionally, he will be required to pay restitution to his victims and to register as a sex offender under the Sex Offender Registration and Notification Act. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Joshua S. Levy for the District of Massachusetts, Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division, and Special Agent in Charge Jodi Cohen of the FBI Boston Field Office made the announcement.
The FBI investigated the case, with assistance from the Department of State’s Diplomatic Security Service.
Trial Attorneys Nadia Prinz and Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Anne Paruti for the District of Massachusetts are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the 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 www.justice.gov/psc.
Former Teacher Pleads Guilty to Exploiting Children in LaosRead the Press Release
BOSTON – A Lynn man pleaded guilty today to sexually exploiting minors to whom he taught English in Laos.
Michael Sebastian, 56, pleaded guilty to three counts of engaging in illicit sexual conduct in foreign places. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 28, 2024. Sebastian was arrested and charged in July 2020 following his return to the United States and subsequently indicted by a federal grand jury in August 2020.
According to the charging documents, Sebastian taught English to impoverished children in Laos. While teaching children there, Sebastian allowed certain students to live with him in his apartment. Students who were unable to pay for their living expenses performed “chores” around the house to earn credit towards their rent payments. One of the “chores” eligible for rent credit was to give Sebastian massages, during which Sebastian would be naked. As part of these massages, Sebastian required some students to touch his genitals and masturbate him in lieu of rent payment.
Between May 2018 and March 2020, Sebastian sexually abused three minor children who lived with him.
“Mr. Sebastian ingratiated himself into a position of trust and then manipulated his relationships to exploit vulnerable minors who sought refuge and education. His horrific conduct is a parent’s worst nightmare,” said Acting United States Attorney Joshua S. Levy. “Ensuring the safety of our children from an array of threats is an absolute top priority for this office. This case should send a resounding message to Americans in Massachusetts and beyond: predators will be identified, prosecuted and held accountable.”
“Teachers like Michael Sebastian who use their access to children for their own sexual gratification are both a danger and a disgrace. Today, Mr. Sebastian finally admitted to exploiting impoverished children in a foreign country and betraying their trust,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This case illustrates how the FBI will pursue justice beyond American borders to safeguard vulnerable victims from predators.”
The charge of engaging in illicit sexual conduct in foreign places provides for a sentence of up to 30 years in prison, five 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 that govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy; Nicole M. Argentieri, Acting Assistant Attorney General for the Justice Department’s Criminal Division; and FBI SAC Cohen made the announcement. This case was primarily investigated by the FBI's Legal Attache office in Bangkok, along with valuable assistance provided by the FBI's Child Exploitation Operational Unit and the Boston FBI’s Child Exploitation Human Trafficking Task Force. Assistant U.S. Attorney Anne Paruti, Project Safe Childhood Coordinator and Chief of the Office’s Major Crimes Unit, and Trial Attorneys Nadia Prinz and Eduardo Palomo of the Justice Department’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former Correctional Sergeant Found Guilty in Retrial of Falsification of Records to Cover up Assault of a CSP Sacramento InmateRead the Press Release
SACRAMENTO, Calif. — A jury found former California state correctional officer Brenda Villa, 32, of North Highlands, guilty today of one count of conspiracy to commit falsification of records in a federal investigation and three counts of falsification of records, U.S. Attorney Phillip A. Talbert announced.
In July 2023, following a three-day trial, a jury found Villa guilty of perjury in connection with a federal grand jury investigation into the assault of an inmate by a correctional officer and the ensuing conspiracy to cover it up. The prior jury could not reach a unanimous verdict on additional conspiracy and falsification of records counts, and the United States requested a retrial. The retrial on those remaining counts finished today.
According to the court records and evidence presented at trial, Villa was a correctional sergeant supervising other officers at California State Prison – Sacramento (also known as New Folsom State Prison or CSP-Sacramento) when correctional officer Arturo Pacheco unlawfully assaulted an inmate under color of law. Several California Department of Corrections and Rehabilitation (CDCR) officers responded to the alarm after the assault. Villa was the first responding officer to the scene and immediately took charge. The inmate was transported to the hospital but died two days later. As a supervisor, Villa directed the preparation of, and later signed off on, a series of reports about the incident that she knew were false because they completely omitted the presence and involvement of a correctional officer who had witnessed the assault, and who Villa herself had observed at the scene. Villa instructed the removal of that correctional officer witness’s name from another person’s report. The correctional officer witness’s draft report describing Pacheco’s unjustified use of force was never collected, and it did not become a part of the official record of the incident.
Following the assault and the inmate’s death, CDCR initiated an internal investigation. As the CDCR internal investigation proceeded, a federal grand jury began investigating federal criminal charges in conjunction with the Federal Bureau of Investigation and the U.S. Attorney’s Office. In November 2020, Villa was called to testify in front of the grand jury about her role and the actions of her fellow officers in covering up the unlawful assault. Villa lied under oath to the federal grand jury investigating the incident.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Michael D. Anderson and Rosanne L. Rust are prosecuting the case.
Former correctional officers Arturo Pacheco and Ashley Aurich pleaded guilty and were sentenced to 12½ years and 21 months in prison, respectively.
Villa is scheduled to be sentenced on March 18, 2024. Villa faces a maximum statutory penalty of five years in prison and a $250,000 fine for the count of conspiracy and the count of perjury. She faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of falsification of records. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former City of Jackson Employee Sentenced for Wire FraudRead the Press Release
Jackson, Miss.– A former City of Jackson employee was sentenced to 5 years of probation for wire fraud and ordered to pay approximately $54,000 in restitution.
According to court documents, Keyshia Sanders, 48, the City of Jackson’s former Constituent Service Manager, pleaded guilty to engaging in a wire fraud scheme to fraudulently induce the disbursement of grant money for her own benefit. The scheme involved the use of fraudulent invoices that caused the grant’s fiscal agent to disburse funds to Sanders in clear contradiction to the terms of the grant and Sander’s role as a City of Jackson employee. The grant was intended to provide project support in the City of Jackson to invest in artists, artist collectives, and small arts organizations. In total, the fraudulent transactions caused by Sanders over the course of the scheme totaled a loss of approximately $54,000.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation made the announcement.
The Federal Bureau of Investigation and the Mississippi State Auditor’s Office investigated the case.
Former Chief Operating Officer of Suburban Chicago Covid-19 Testing Kit Company Charged with Embezzling at Least $1.8 Million in Company FundsRead the Press Release
CHICAGO — The former Chief Operating Officer of a suburban Chicago company that sold Covid-19 testing kits has been indicted on federal fraud charges for allegedly embezzling at least $1.8 million in company funds.
DENNIS W. HAGGERTY, JR. issued fraudulent payments from the Willowbrook, Ill.-based company’s bank account for services and goods purportedly provided by himself or the company’s main vendor, a manufacturer from whom the company purchased Covid-19 testing kits, according to an indictment returned Dec. 14, 2023, in U.S. District Court in Chicago. In reality, the services and goods had not been provided, the indictment states. The money purportedly sent to the testing-kit supplier was wired to a bank account that Haggerty controlled, and he spent the funds for his personal benefit, the indictment states.
In addition to the wire transfers, Haggerty allegedly issued checks drawn from the company’s bank account to himself, knowing that he would spend the money for his personal benefit and not the company’s benefit. Haggerty concealed his fraud by making false and misleading statements on the checks and to the company’s president, the indictment states.
In 2021 and 2022, Haggerty embezzled and fraudulently misappropriated at least approximately $1.8 million from the company, the indictment alleges.
The indictment charges Haggerty, 47, of Burr Ridge, Ill., with five counts of wire fraud. Arraignment in U.S. District Court in Chicago has not yet been scheduled. The indictment states that Haggerty committed the embezzlement while free on court-ordered release while another federal fraud case against him was pending. He was eventually convicted in that case and sentenced in December 2022 to a term of 57 months’ imprisonment.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General. The government is represented by Assistant U.S. Attorney L. Heidi Manschreck.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison, to be followed by a consecutive term of up to ten years for each offense committed while under court-ordered release. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Haggerty indictmentFlorida Man Indicted for Hate Crime in Murder of Black Man in Kansas City, MissouriRead the Press Release
A Florida man was charged with a federal hate crime today for a murder he committed while staying in the Kansas City, Missouri, area.
Sean Walter Tonkin, 36, who was staying at a local motel at the time of the alleged offense, was charged in an indictment returned by a federal grand jury in Kansas City with committing a racially-motivated hate crime resulting in death.
The indictment alleges that Tonkin, armed with a knife with knuckles, approached a Black man, J.M.R., on July 4. Unprovoked, Tonkin allegedly directed racial epithets and threats toward J.M.R. and ultimately stabbed him twice in the chest and abdomen, resulting in J.M.R.’s death. The indictment alleges that Tonkin attacked J.M.R. because of his race.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Teresa A. Moore for the Western District of Missouri and Special Agent in Charge Stephen A. Cyrus of the FBI Kansas City Field Office made the announcement.
The FBI Kansas City Field Office is investigating the case.
Executive Assistant U.S. Attorney David Ketchmark for the Western District of Missouri and Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Final Defendant Pleads Guilty in Armed Robbery of Pharmacy VanRead the Press Release
WASHINGTON D.C. – Juwuan Edward Francis Champion, 24, of Bowie, Md., pleaded guilty yesterday to his role in the felony armed robbery of a pharmaceutical van driver and a firearms charge, announced U.S. Attorney Matthew M. Graves and Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Washington Field Division.
Champion, aka “Big Money,” pleaded guilty on December 19, 2023, to conspiracy to interfere with interstate commerce by robbery (known as conspiracy to commit a Hobbs Act robbery) and unlawful possession of a machine gun. U.S. District Judge Amit P. Mehta scheduled sentencing for March 15, 2024.
Champion was part of a four-member crew participating in a drug trafficking operation in the Potomac Gardens neighborhood of Southeast Washington. The three other members included Fitzgerald Hunt, 24, of Washington, D.C., also known as “GMoney;” Joshua Johnson, 18, of Capitol Heights, Md., also known as “Lil Josh,” and Keyshawn Lavender, 20, of Washington, D.C., also known as “Key.” From January to October 2021, the crew members allegedly trafficked in Oxycodone, Alprazolam, and other illegal narcotics.
In pleading guilty, Champion, Hunt, and Johnson admitted that on March 30, 2021, they conspired to rob a pharmaceutical delivery van driver outside a pharmacy in Waldorf, Md. The driver was placed in handcuffs, hit on the head with a firearm, and then the defendants drove the van back to Washington, D.C., with its pharmaceutical contents.
Law enforcement arrested the four men on October 7, 2021.
Hunt, Johnson, and Lavender previously pleaded guilty. Hunt was sentenced on September 29, 2023, to 108 months in prison and 36 months of supervised release. Johnson, who was 17 years old at the time of the robbery, pleaded guilty to drug conspiracy and separately pled guilty to related local charges in Charles County, Maryland in a global resolution.
Lavender was not charged with the robbery and pleaded guilty to drug conspiracy and received a sentence of 30 months in prison.
This case was investigated by the ATF Washington Field Office and the Metropolitan Police Department (MPD). Critical support was provided by the Charles County Md. Sheriff’s Office and Charles County State’s Attorney’s Office, and additional assistance was provided by the U.S. Marshals Service, the Prince George’s County, Md. Police Department, and Anne Arundel County, Md. Police Department.
The case was prosecuted by Assistant U.S. Attorneys Candice Wong and Solomon Eppel of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by former Special Assistant U.S. Attorney Allison McGuire.
Felon Pleads Guilty to Possessing Ammunition Used in Shooting in BrooklynRead the Press Release
Today in federal court in Brooklyn, Leo Oliver pleaded guilty to being a felon in possession of ammunition in connection with a non-fatal shooting of a man in East New York, Brooklyn. Today’s proceeding was held before United States District Judge Dora L. Irizarry. When sentenced, Oliver faces up to 10 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Erin Keegan, Acting Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York (HSI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD) announced the guilty plea.
“With today’s plea, the community can begin to heal from the callous violence the defendant brazenly inflicted in public places,” stated United States Attorney Peace. “My Office is deeply committed to holding repeat offenders who engage in gun violence, like the defendant, fully accountable for their actions.”
“For years, Leo Oliver caused immense harm to the Brooklyn community through his reckless acts of violence and justice has finally caught up with him. I commend the efforts of HSI New York's Violent Gang Task Force for successfully identifying Oliver, a repeat offender whose rap sheet boasted seven prior felonies, as the perpetrator in multiple shootings in East New York over a two-year period,” said HSI New York Acting Special Agent in Charge Erin Keegan. “I would like to thank the NYPD and the Eastern District of New York for their collaborative efforts to reduce gun-related violence, and their commitment toward the safety of our great city.”
“While crime never rests, neither does the commitment of the men and women of the NYPD,” stated NYPD Commissioner Caban. “I commend our investigators for their dedication to this important case. And, in the ongoing effort to end the horrors of gun violence, we and our partners at HSI and the office of the U.S. Attorney for the Eastern District of New York will remain tireless in identifying, investigating, and holding fully accountable anyone responsible for driving crime and disorder in our city.”
According to court filings, the indictment, and facts presented during the plea proceeding, Oliver committed two shootings in East New York, Brooklyn in 2020 and 2021.
On the evening of July 8, 2020, the defendant shot his first victim (Victim-1) at a bodega. Victim-1 was working behind the counter when, after a dispute, Oliver brandished a black firearm from his pocket, and shot Victim-1 in the chest and hand, before fleeing in an SUV. A .380 shell casing was recovered from the scene. Victim-1 was hospitalized but survived.
Oliver committed a second shooting on September 25, 2021 following an argument with Victim-2 on the sidewalk on Van Siclen Avenue in Brooklyn. As Victim-2 and Oliver were in a verbal dispute, Oliver shot Victim-2 in his torso, before fleeing on foot. Victim-2 was hospitalized but survived. Two .380 shell casing were recovered at the scene.
As described in court filings, after the shootings the defendant took steps to destroy evidence and conceal his crimes. He deleted firearms evidence from his cell phone, and threw the firearm used in the 2020 shooting into a river.
The defendant has at least ten other prior convictions, including at least seven felony convictions.
Assistant United States Attorney Adam Amir is in charge of the prosecution.
The Defendant:
LEO OLIVER (also known as “Gam”)
Age: 43
Mechanicsburg, PennsylvaniaE.D.N.Y. Docket No. 23-CR-279 (DLI)