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Wednesday 8 November 2023
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 La Crosse Men Charged with Drug Crimes Involving Cocaine & Fentanyl
Louis A. Ray, 46, La Crosse, Wisconsin, is charged with three counts of distributing cocaine and he and Timothy A. Cannon, 35, also of La Crosse, are charged with four counts of distributing fentanyl. The indictment alleges that two of the counts of distributing fentanyl involved 40 grams or more. Cannon is also charged with one count of possessing fentanyl with intent to distribute. The indictment alleges that these offenses occurred between April 19 and July 6, 2023.
If convicted, Ray and Cannon face a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the two charges alleging the distribution of 40 grams or more of fentanyl. They face a maximum of 20 years on each of the other charges.
The charges against Ray and Cannon are the result of an investigation by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Anita Marie Boor is handling the prosecution.
Mexican National Charged with Illegally Reentering U.S.
Maurillo Mendoza-Vasques, also known as Mauricio Mendoza-Vasquez, 46, a citizen of Mexico found in Arcadia, Wisconsin, is charged with illegally reentering the United States after being removed. The indictment alleges he was found in the U.S. on July 25, 2023.
If convicted, Mendoza-Vasques faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by U.S. Immigration and Customs Enforcement. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Glencoe Man Pleads Guilty to Illegally Possessing a Firearm and Possessing Marijuana with Intent to DistributeRead the Press Release
OKLAHOMA CITY – Earlier this week, LESTER LEE BAYS, 69, of Glencoe, Oklahoma, pleaded guilty to illegally possessing a firearm after a previous felony conviction and possession of marijuana with intent to distribute, announced U.S. Attorney Robert J. Troester.
On September 5, 2023, a federal grand jury returned a three-count Indictment against Bays, charging him with being a felon in possession of a firearm, possession of marijuana with intent to distribute, and possession of a firearm in furtherance of a drug-trafficking crime. According to court documents, on or about March 25, 2023, Bays was found to be in possession of marijuana and a firearm, despite a previous felony conviction. On September 21, 2023, Bay was ordered to be detained in federal custody.
On November 6, 2023, Bays pleaded guilty to Counts 1 and 2 of the Indictment. As part of his plea, Bays admitted to being a felon in possession of a firearm on March 25, 2023. He also admitted to being in possession of marijuana which he intended to distribute. At sentencing, Bays faces up to 15 years in federal prison on Count 1 and up to five years in federal prison on Count 2.
Public records reflect that Bays holds multiple prior felony convictions, including assault and battery with a deadly or dangerous weapon in Payne County District Court case number CF-1986-60, and possession of a firearm after a former conviction of a felony in Payne County District Court case number CF-2018-161.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Payne County Sheriff’s Office. Assistant U.S. Attorney Mary E. Walters is prosecuting the case.
This case is part of “Operation 922” and operation “Shots Fired,” the Western District of Oklahoma’s implementation of Project Safe Neighborhoods, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. “Operation 922” prioritizes prosecution of federal firearms violations connected to domestic violence. “Shots Fired” targets cases involving individuals who discharge firearms as part of their criminal activity, such as drive-by shootings or when shots are fired during robberies, domestic disputes, or other incidents. For more information about Project Safe Neighborhoods, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for additional information.
Founder of Beverly Hills ‘Gentlemen Timepieces’ Consignment Store Charged with Conning Victims in Luxury Watch Ponzi-Type SchemeRead the Press Release
LOS ANGELES – A Los Angeles man who previously operated a business in Beverly Hills known as “Gentlemen Timepieces” appeared in court this afternoon after his arrest Tuesday by FBI agents on charges of defrauding customers of his luxury watch consignment business.
Anthony Farrer, 35, who until recently lived in downtown Los Angeles, was charged in a federal criminal complaint filed Monday with wire fraud, a felony that carries a statutory maximum sentence of 20 years in federal prison.
Farrer, who also was known as “The Timepiece Gentleman,” was arrested without incident at a storage facility in Venice and was held in federal custody overnight. He made his initial appearance this afternoon in United States District Court, and an arraignment was scheduled for December 14. A detention hearing is scheduled for Thursday.
According to an affidavit filed with the complaint that was unsealed today, Farrer founded the company in Texas in 2017 and opened a location in Beverly Hills in 2022. Farrer used this business to connect purchasers and sellers of high-end watches. He would typically collect a watch from an individual and have them sign a consignment agreement that stipulated he would collect a commission from the sale, typically 5%.
The complaint alleges that Farrer defrauded victims beginning in late 2022 until the summer of 2023, when he promised customers he would sell their luxury watches on consignment. Rather than remitting funds back to the customers less the commission, he kept the proceeds for himself. Farrer lived in a luxury rental property and was known to drive a Lamborghini and Ducati motorcycles. He traveled frequently to, and engaged in gambling in, Las Vegas, according to the complaint.
Farrer induced victims into wiring funds for the purchase of luxury watches and, instead of purchasing the agreed upon watch, he would send them a different watch, the complaint alleges. In one case, a victim received a Rolex watch from Farrer in lieu of money Farrer owed, but the Rolex belonged to another victim who had provided the watch to Farrer to sell on consignment and did not authorize Farrer to use the watch as payment for his debts to other victims.
The complaint further alleges that Farrer operated a scheme in a similar manner to a Ponzi scheme and would lull victims into a sense of security by engaging in smaller successful transactions prior to requesting or engaging in significantly larger transactions.
Multiple victims contacted law enforcement to report that they wired funds to Farrer for the purchase of a watch, or mailed him a watch to consign for sale, but were never paid for the watch or never received their watch back. To date, law enforcement estimates that victim losses currently total approximately $3 million. The investigation is ongoing and law enforcement is in the process of identifying additional victims.
Farrer apparently abandoned the Beverly Hills store in August 2023 and began posting about his various travel throughout the United States on social media. As recently as October 2023, Farrer continued to advertise watches for sale on his social media platforms, according to the complaint.
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI, IRS Criminal Investigation, and the Beverly Hills Police Department are investigating this matter.
Assistant United States Attorney Joshua O. Mausner of the Violent and Organized Crime Section is prosecuting this case.
Former U.S. Postal worker sentenced for mail crimeRead the Press Release
WICHITA, KAN. – A former U.S. Postal Service worker was sentenced to 24 months of probation for criminal conduct related to her employment.
According to court documents, Tammy L. Frink, 50, of Beardsley, Kansas, pleaded guilty to one count of opening of mail by a postal employee.
On September 21, 2022, Frink, while working at a post office in McDonald, Kansas, opened a sealed greeting card destined for an address in Missouri. Frink did not have authority or permission to open the piece of mail.
Frink was ordered to serve 60 hours of community service and to pay a total restitution of $1,686, with the U.S. Postal Service receiving $1,075 and $611 to five individuals who were victims in other instances of mail theft linked to Frink.
“This sentence represents our commitment to work with our law enforcement partners to maintain the integrity and trust in the U.S. Mail,” said Ryan Petry, Acting Special Agent in Charge, United States Postal Service Office of Inspector General, Central Area Field Office. “The majority of postal employees are hard-working public servants dedicated to moving mail to its proper destination. The USPS OIG, along with the U.S. Attorney’s Office, remains committed to safeguarding the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees.”
The U.S. Postal Service – Office of the Inspector General investigated the case.
Assistant U.S. Attorney Matt Treaster prosecuted the case.
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Former KC Bank Manager Pleads Guilty to Facilitating Covid Fraud Scheme, Unemployment Benefits Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – A former bank branch manager in Kansas City, Mo., has pleaded guilty in federal court to accepting Kansas City Chiefs playoffs tickets and a new Chevrolet Tahoe in exchange for facilitating a $12.4 million Covid fraud scheme by a Jefferson City, Mo., business owner, as well as a separate fraud scheme to receive unemployment benefits.
Anthony Omar Brockman, 48, who currently resides in Bennington, Nebraska, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., on Tuesday, Nov. 7, to one count of wire fraud, one count of receiving gifts for procuring loans, and one count of money laundering.
Brockman was the branch manager of the Truman Hospital location of US Bank in Kansas City, Mo., until the COVID-19 pandemic caused the bank branch to close. Brockman was reassigned to US Bank’s Paycheck Protection Program project from April 12 through July 19, 2020. Brockman was then returned to his role as on-site manager at the Truman Hospital bank branch until May 22, 2021.
On March 27, 2020, The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments.
By pleading guilty, Brockman admitted that he assisted and facilitated fraudulent PPP loan applications for Tod Ray Keilholz, the owner of TRK Construction, LLC, TRK Valpo, LLC, TL Builders, LLC, and Project Design, LLC, in Jefferson City. Keilholz has been charged in a separate indictment for his role in a more than $27.1 million bank fraud scheme that included more than $12.4 million in PPP loans for his businesses.
According to that separate indictment, Keilholz received a total of $12,430,932 in PPP loans for his four businesses. In each of those loan applications, the indictment says, Keilholz failed to disclose his ownership in the other three businesses, and made materially false and fraudulent claims in the loan applications and supporting documentation. Keilholz allegedly inflated the income of those businesses and claimed payrolls for employees who did not exist or no longer worked for him.
Brockman admitted that he received gifts in exchange for assisting Keilholz in procuring those loans. On Nov. 4, 2020, Keilholz used PPP loan proceeds to pay for a 2021 Chevrolet Tahoe that he gave to Brockman. Brockman admitted that the gift was intended to influence and reward him in connection with Keilholz’s applications for PPP loans and for the forgiveness of PPP loans.
Brockman also admitted that he received tickets from Keilholz to the Jan. 24, 2021, AFC Championship Game between the Kansas City Chiefs and the Buffalo Bills. In pleading guilty to money laundering, Brockman admitted that he signed an affidavit gifting the 2021 Chevrolet Tahoe to Rich Girl, Rich Boy Prep, Inc., a charity of which his wife was the Chief Executive Officer. On May 25, 2021, Brockman transferred the title to the Tahoe to Rich Girl, Rich Boy Prep but continued to drive the Tahoe until he sold it in July 2022.
In pleading guilty to wire fraud, Brockman admitted that he fraudulently received $11,040 in unemployment benefits from March 27, 2020, to Nov. 4, 2021, while he was employed by US Bank. Brockman falsely claimed he was unemployed when he applied for unemployment benefits via the internet, then repeated that false claim in 11 subsequent weekly online applications submitted to the state.
Under the terms of his plea agreement, Brockman must pay the government a $84,582 money judgment, which represents the proceeds he obtained from the offenses.
Under federal statutes, Brockman is subject to a sentence of up to 70 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau-Office of Inspector General, the Small Business Administration-Office of Inspector General, the Treasury Inspector General for Tax Administration, the Federal Deposit Insurance Corporation (FDIC)-Office of Inspector General, the FBI, and IRS-Criminal Investigation.
Pandemic Response Accountability Committee Task Force
The Pandemic Response Accountability Committee Task Force was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program (PPP), and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.
Former Indiana University Foundation Employee Sentenced to One Year in Federal Prison for Embezzling More Than $326,000 in DonationsRead the Press Release
INDIANAPOLIS- Teresa Maners, 64, of Spencer, Indiana, has been sentenced to one year and a day in federal prison after pleading guilty to wire fraud.
According to court documents, Maners was employed with the Indiana University Foundation as a Depositor and Payroll Deduction Associate beginning in 1988. The Indiana University Foundation works to maximize financial support for Indiana University through private donations and on-campus fundraisers. Maners’ job duties included recording cash and checks received from donors and preparing them for deposit in the foundation’s bank account.
During her employment, Maners stole hundreds of thousands of dollars from the foundation by taking cash before recording it in the foundation’s accounting systems. To hide the stolen cash, Maners secretly withheld checks from the day’s deposits and substitute those checks in a subsequent day’s deposit to hide the missing cash. She also wrote checks to the foundation from her personal bank account to cover any difference between the substituted donor checks and the stolen cash. This type of fraud is sometimes referred to as a “lapping scheme.” As the only employee in charge of recording cash donations, Maners was able to alter the accounting paperwork to “balance” the books and keep the stolen cash donations for herself. Maners continued the fraud for nearly four years, and stole approximately $326,334 from the foundation. In 2019, the foundation conducted an external audit after discovering accounting irregularities, and confronted Maners who admitted to stealing the money.
“For years, this defendant abused her position of trust to line her own pockets and steal hundreds of thousands of dollars in charitable donations from a foundation dedicated to advancing important educational programs in our state,” said U.S. Attorney, Zachary A. Myers. “Our office and the FBI are dedicated to identifying criminals who steal from and defraud our charities, businesses, and government organizations and holding them accountable. The federal prison sentence imposed here demonstrates that financial crimes cause serious harms and merit serious punishment.”
“Charitable organizations like the Indiana University Foundation count on people in positions of trust to act in the interests of organization and its mission rather than taking advantage of their position for personal gain as the defendant did,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI will continue to identify and investigate those who choose to commit fraud and enrich themselves at the expense of others.”
The FBI investigated this case. The sentence was imposed by U.S. District Court Judge Jane Magnus-Stinson. Judge Stinson ordered that Maners be supervised by the U.S. Probation Office for two years following her release from federal prison and pay $326,334.64 in restitution.
U.S. Attorney Myers thanked Assistant U.S. Attorney Corbin Houston, who prosecuted this case.
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Former Defense Contractor in Tomah Receives 15-Month Prison Sentence & $10,000 Fine for Wire FraudRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jonathan Walker, 46, Tomah, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 15 months in federal prison for wire fraud. The prison term will be followed by one year of supervised release. Judge Peterson also ordered Walker to pay restitution in the amount of $72,000 and to pay a fine of $10,000. Judge Peterson ordered Walker to report to prison on January 4, 2024.
Walker pleaded guilty on July 11, 2023, to devising and participating in a scheme to defraud the U.S. Department of Defense (DoD). Walker owned and operated Walker Investment Properties (WIP) in Tomah, which was a contracting business that did heating and air conditioning services. Walker fraudulently obtained two DoD contracts to do work at Fort McCoy, falsely claiming that WIP was a service-disabled veteran owned small business (SDVOSB). WIP obtained two SDVOSB contracts worth a total of $1,927,536. WIP received a total of $482,577 from these two contracts.
Walker did not qualify as a SDVOSB, because he had never served in the military, much less been disabled as a result of his military service. The government’s proof showed that Walker was a 100% owner of WIP and ran the company.
As part of the government contracting system, a government contractor is required to sign a Federal Acquisition Regulation report under penalty of perjury certifying that the government contractor is providing true and correct information to the General Services Administration and will abide by all of the federal regulations pertaining to DoD contracting. Walker did this eight times from 2015 to 2019, falsely certifying he was a SDVOSB when he was not.
At today’s sentencing, Judge Peterson explained that a substantial sentence was warranted to send a message of general deterrence to other defense contractors, noting that the integrity of the set-aside program depends on the honesty of the contractors, and cheaters will be dealt with severely.
“The United States Attorney’s Office is committed to honoring and protecting those who served in America’s armed forces,” stated United States Attorney O’Shea. “In part, we demonstrate that commitment by working with our law enforcement partners to investigate and prosecute those who fraudulently pose as veterans for financial advantage.”
”The Defense Criminal Investigative Service (DCIS) is committed to working with our investigative partners to bring to justice those who abuse Government set-aside programs designed to encourage and support service-disabled veterans and woman and minority-owned small businesses,” stated Darrin K. Jones, Special Agent in Charge of the U.S. Department of Defense Office of Inspector General, DCIS, Southeast Field Office. ”Schemes like this undermine the integrity of these noble programs and cannot be allowed to continue.”
Special Agent in Charge Jeffrey Ryan of the General Services Administration Office of Inspector General added, “The GSA OIG will work with law enforcement partners to aggressively pursue cases involving anyone who falsifies information to fraudulently win government contracts. Legitimate service-disabled veteran businesses deserve a level playing field when competing for contract opportunities.”
The charges against Walker were the result of an investigation conducted by the U.S. Department of Defense - Office of Inspector General, Defense Criminal Investigation Service, General Services Administration - Office of Inspector General, and the Department of the Army Criminal Investigation Division. Assistant U.S. Attorney Daniel Graber handled the prosecution.
Former Clerk for Chicago Transit Authority Retirement Plan Sentenced to a Year in Prison for Fraudulently Obtaining $356,000 in Plan FundsRead the Press Release
CHICAGO — A former clerk for the Retirement Plan for Chicago Transit Authority Employees has been sentenced to a year in federal prison for fraudulently obtaining more than $356,000 in Plan funds.
AYANNA NESBITT created and obtained approval for approximately 43 fraudulent requests for the Plan to issue various benefits to CTA employees or their beneficiaries, including pension and death benefit payments, and refunds of pension contributions. The fraudulent requests contained false representations about the purported recipients’ identities and entitlement to the payments. Nesbitt had the payments sent to financial accounts she controlled or else had the money paid to others and then transferred to Nesbitt. From 2019 to 2021, Nesbitt defrauded the Plan of approximately $356,934.
Nesbitt, 51, of Chicago, pleaded guilty earlier this year to a wire fraud charge. U.S. District Judge Matthew F. Kennelly imposed the year-and-a-day sentence Tuesday after a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Retirement Plan for CTA Employees provided valuable assistance.
“Defendant was a public employee who abused her position to benefit herself and those close to her,” Assistant U.S. Attorney Christopher K. Veatch argued in the government’s sentencing memorandum.
Former California Resident Sentenced to Ten Years in Prison on Drug Trafficking and Money Laundering ChargesRead the Press Release
PITTSBURGH, PA – A former resident of Stockton, California has been sentenced in federal court to 120 months of imprisonment followed by three years of supervised release on his conviction for violating federal narcotics and money laundering laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Christian Maldonado, age 35.
According to information presented to the court, Maldonado packed for shipment at least 280 pounds of methamphetamine that was shipped from the Stockton, California area to the Western District of Pennsylvania. Maldonado also received parcels containing over $1,000,000 in United States currency as payment for the methamphetamine. At the time of Maldonado’s arrest, seventeen firearms, jewelry, a large amount of marijuana, and $212,907 was seized from his residence.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department for the investigation leading to the successful prosecution of Maldonado. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former California Resident Sentenced to 9 Years in Prison for Role in Distribution of MethamphetamineRead the Press Release
PITTSBURGH, PA – A former resident of Stockton, California has been sentenced in federal court to 108 months of imprisonment followed by two years of supervised release on his conviction for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Armando Razo Jr., age 34.
According to information presented to the court, Razo supplied approximately one hundred pounds of methamphetamine to Christian Maldonado in Stockton, California, which Maldonado then packaged for shipment to the Western District of Pennsylvania.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department for the investigation leading to the successful prosecution of Razo. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former California Resident Sentenced to 5 Years in Prison on Drug ChargesRead the Press Release
PITTSBURGH, PA – A former resident of Stockton, California, has been sentenced in federal court to 60 months of imprisonment followed by four years of supervised release on his conviction for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Abel Perez, age 36.
According to information presented to the court, Perez was a courier who transported methamphetamine to post offices in the Stockton, California area that were shipped to individuals in the Western District of Pennsylvania.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department for the investigation leading to the successful prosecution of Perez. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Florida Man Who Failed to Appear in Idaho for Sentencing in 2019 and Fled to Cuba Now Sentenced to Federal Prison on Fraud ChargesRead the Press Release
BOISE – Adrian Acosta Alonso, 34, of Florida, was sentenced to 24 months in federal prison for access device fraud charges and failing to appear in court, announced U.S. Attorney Josh Hurwit. Chief U.S. District Judge David C. Nye imposed the sentence and also ordered Alonso to serve three years of supervised release following his prison sentence.
According to court records and statements made in court, in December 2018, Alonso and his codefendants attempted to pry open a gas pump with a crowbar at a gas station in Meridian. They intended to place a device inside the gas pump capable of recording and storing customers’ financial transaction card information, also known as a skimming device.
Alonso and his codefendants fled the scene after an employee called the police. Alonso and his codefendants were arrested in a nearby van and Meridian police officers located access device-making equipment in the van, including skimming devices, chip readers, a financial transaction card reader/encoder, and security seals for gas pumps.
In addition, officers located 55 blank financial transaction cards and 15 counterfeit financial transaction cards embossed in the names of Alonso and his codefendants. On a laptop, officers additionally located spreadsheets containing 423 financial transaction card numbers along with associated financial transaction card holders’ names, personal identification numbers, and expiration dates.
In February 2019, Alonso and his codefendants were federally charged in the District of Idaho with access device fraud charges, and Alonso was released from custody with the condition to appear in court pursuant to the Bail Reform Act. Thereafter, Alonso pleaded guilty in August 2019, and the Court set a sentencing hearing for November 2019. On that date, however, Alonso knowingly and intentionally failed to appear for the sentencing hearing and instead, fled to Cuba where Alonso is also a citizen. Thereafter, in July 2022, Alonso was separately charged with failing to appear at his sentencing.
Alonso was arrested on both cases upon returning to the United States in December 2022. Judge Nye sentenced Alonso to 12 months in federal prison for access device charges and another 12 months in prison for failing to appear at his sentencing in 2019.
Judge Nye previously sentenced co-defendant Yatsel Aleman Santana, 34, of Florida, in February 2023 to 30 months in federal prison after Santana also fled to Cuba to avoid the same access device fraud charges.
U.S. Attorney Hurwit commended the work of the United States Secret Service and the Meridian Police Department, which led to the charges. Assistant U.S. Attorney Sean Mazorol prosecuted the case.
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Five Indicted in Scheme to Fraudulently Obtain Bank and Small Business Administration Loans in Property Flipping SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging five individuals for a fraud scheme intended to obtain over $35 million from financial institutions by providing false documentation in support of SBA loan applications for the purchase of hotels. Defendant Mehul Ramesh Khatiwala, a/k/a “Mike Khatiwala,” age 41, of Voorhees, New Jersey, also faces a continuing financial crimes enterprise charge, also known as the financial crime kingpin statute—the first time this statute has been charged in Maryland. The indictment was returned on November 1, 2023. In addition to Khatiwala, the following defendants are charged in the indictment with bank fraud, making false statements to financial institutions, and money laundering:
Rajendra G. Parikh, age 63, of Monroe, New Jersey;
Jennifer H. Watkins, age 47, of Marlton New Jersey;
Rebecca Marie Cohn, a/k/a Rebecca Marie Stanton, age 36, of Fallston, Maryland; and
Rajnikant I. Patel, age 59, of North Brunswick, New Jersey.Rajnikant Patel and Jennifer Watkins will have initial appearances on November 9, 2023, at 11:00 a.m. and 11:30 a.m., respectively, in U.S. District Court in Baltimore before U.S. Magistrate Judge A. David Copperthite. Cohn had her initial appearance on November 6, 2023. Khatiwala and Parikh had initial appearances in the U.S. District Court in New Jersey on November 3, 2023, and were ordered to be detained.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Robert Manchak, Federal Housing Finance Agency Office of Inspector General (“FHFA-OIG”); and Special Agent in Charge Jeffrey D. Pittano, Mid-Atlantic Region, Federal Deposit Insurance Corporation Office of Inspector General (“FDIC-OIG”).
According to the 31-count indictment, Khatiwala was the owner and managing member of Delaware Hotel Group LLC (“DHG”), and an operator of GMK Consulting LLC (“GMK”) and KPG Hotel Mgmt. LLC (“KPG”), which were hotel management and loan brokerage companies located in Mount Laurel, New Jersey. Jennifer Watkins was a project coordinator for DHG and managing member of Forza Consulting LLC (“Forza”), a hotel consulting and loan brokerage company located in Marlton, New Jersey. Rajendra Parkih was an owner of KPG and Rebecca Cohn was a settlement and title processor for Residential Title & Escrow Company (“Residential Title”), a real estate title company located in Owings Mills, Maryland, that offered escrow and loan settlement services. Rajnikant Patel worked as the manager of a convenience store owned by Parikh and Parikh’s brother.
The indictment alleges that from August 2018 until February 2020 the defendants conspired to obtain loan proceeds for the defendants and others to buy and sell hotels in a hotel flipping scheme by making material misrepresentations and omissions to financial institutions during the loan application process regarding the identity of the sellers, the familial relationships between the parties, and the nature and amount of the equity injected by the borrowers, under the SBA’s Section 7(a) Program. The SBA’s Section 7(a) Program guaranteed and insured 75 percent to 90 percent of qualified loans made and administered by participating lending institutions and required that the small business owner/borrower invest a certain amount of their own money into the business to qualify for the loan.
Specifically, the indictment alleges that Khatiwala, Parikh, and Watkins created shell companies using Patel and a co-conspirator as the straw owners of the companies, then had the straw owners sign purchase contracts, operating agreements, and related documents to buy hotel properties in the names of the shell companies created by Khatiwala, Parikh, and Watkins, while at the same time soliciting investors, including family members, and creating other companies to serve as buying entities (the “Buyers”) so they could quickly resell the hotels at a much higher price.
As detailed in the indictment, Khatiwala, Parikh, Watkins, and Cohn collected, compiled, and submitted documentation needed by financial institutions to determine whether the Buyers qualified for the SBA loans, including records proving that the Buyers provided sufficient cash upfront to satisfy SBA’s equity injection requirements for Section 7(a) funding, such as checks, bank statements, and wire transfer records. Cohn maintained the equity injection funds in designated Residential Title escrow accounts pending the loan settlements and kept ledgers to track the use of those escrow funds.
The indictment alleges that Khatiwala, Parikh, Watkins and Cohn: fraudulently diverted some of the Buyers’ equity injections to make down payments on hotels that were under contract to shell companies controlled by Khatiwala and Parikh; submitted the same wire transfer records and gift letters as support for equity injections that had been already been used to satisfy the buyer’s equity injection obligations for other SBA loan applications; and fraudulently submitted falsified bank statements and wire transfers to satisfy the equity injections.
The indictment also alleges that the defendants engaged in roundtrip transactions, whereby they falsely represented to financial institutions that over $1.5 million on deposit in a Residential Title escrow account would be used to satisfy the Buyer’s equity injection obligations, when, the indictment alleges, the funds were temporarily withdrawn from that account prior to the loan closings and redeposited back into the same escrow account subsequent to the loan closings.
Further, the indictment alleges that Khatiwala, Parikh, Watkins, and Cohn falsely represented to financial institutions that the buying entities had purchased the hotels from the shell companies when, in fact, the shell companies had not yet owned the properties. Khatiwala, Parikh, Watkins, and Cohn diverted loan proceeds intended for the buyers to purchase hotels from the shell companies so that the shell companies could first purchase the property and then flip it to the buyer.
If convicted, Khatiwala faces a mandatory minimum sentence of 10 years and up to life in prison for a continuing financial crime enterprise. All of the defendants face a maximum of 30 years in federal prison for the conspiracy to commit bank fraud and for each count of bank fraud; a maximum of 5 years in federal prison for a conspiracy to make a false statement to a financial institution. Khatiwala, Parikh, Watkins, and Cohn also face a maximum of 30 years in federal prison for each count of making a false statement a financial institution and a maximum of 10 years in federal prison for conspiracy to launder money and for each count of money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FHFA-OIG and FDIC-OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Martin J. Clarke, and Harry M. Gruber, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Federal grand jury indicts Jamestown felon on gun and methamphetamine chargesRead the Press Release
BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Steven Glover, Sr., 39, of Jamestown, NY, with being a felon in possession of a firearm and possession of methamphetamine. The charges carry a maximum penalty of 15 years in prison and a $250,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case stated that according to the indictment and a previously filed complaint, on the morning of December 14, 2022, a Jamestown Police officer observed Glover in a vehicle. The officer knew that Glover was suspended from driving. The officer stopped the vehicle and made contact with Glover, who immediately advised that he had a pipe on his person. Glover then handed over a glass pipe that contained what appeared to be methamphetamine residue inside. Glover was detained and a search of the vehicle recovered a digital scale with white crystal residue and a pistol. Glover was charged in New York State Court and released on bail. On February 22, 2023, a Jamestown Police officer observed Glover in the passenger seat of another vehicle and was aware of his outstanding charges. The officer stopped the vehicle and observed drug paraphernalia a plastic bag containing suspected methamphetamine. Glover was again taken into custody. In 2019, Glover was convicted of a felony in Chautauqua County Court and is legally prohibited from possessing a firearm.
Glover was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and detained.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The indictment is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Former Wayne County Employee Sentenced to 32 Months in Prison for Defrauding County Out of over $2.3 Million in Taxpayer FundsRead the Press Release
DETROIT – A former Wayne County Roads Division employee was sentenced to 32 months in federal prison today for conspiring to defraud the county out of over $2.3 million, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Wayne County Prosecutor Kym Worthy, Cheyvoryea Gibson, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Wayne County Sheriff Raphael Washington.
Kevin Gunn, 64, of West Bloomfield, pleaded guilty in January 2023. Gunn and fellow Wayne County employee John L. Gibson of Detroit engaged in a scheme to use taxpayer dollars to make unauthorized purchases of generators and other power equipment from retailers in southeast Michigan which they sold for hundreds of thousands in personal profit.
According to court documents, in March of 2021, the Wayne County Sheriff’s Department began an investigation into the potential misuse of taxpayer dollars. The Sheriff’s Department solicited the assistance of the FBI to investigate the criminal actions of Gunn, Gibson, other employees of the Wayne County Roads Division, and vendors to Wayne County. At the beginning of the investigation, the Wayne County Prosecutor’s Office secured a search warrant which broke open the case and led to the uncovering of the embezzlement scheme. Investigators with the Wayne County Prosecutor’s Office have played an ongoing and important role in the investigation.
As part of the scheme to defraud, between January 2019 and August 2021, Gunn solicited Wayne County vendors to purchase generators and other power equipment the vendors were not authorized to provide under their contracts with the county. To conceal the scheme to defraud, Gunn instructed the vendors to list on their invoices only the items they were authorized to sell as part of their Wayne County contracts. Roads Division employees approved and paid each vendor’s invoice with taxpayer funds. After these fraudulent purchases were verified and approved by Roads Division employees, Gibson took possession of the equipment, paid Gunn for the items, and resold the generators and other items to members of the public.
A review of invoices from Wayne County vendors revealed that between January 16, 2019, and August 3, 2021, Wayne County vendors bought 596 generators, and a variety of other power equipment including lawnmowers, chainsaws, and backpack blowers. The purchase of these items was not authorized under any vendor contract with Wayne County nor were the items ever provided to or used by Wayne County. The total value of equipment obtained as part of the scheme was over $2.3 million.
United States Attorney Dawn Ison said, “Today’s sentence underscores our relentless demand for the highest standards of integrity and honesty in our public servants. The hardworking citizens of Wayne County deserve a government free of public officials who elevate their greed over the best interests of the public.”
“Mr. Gunn could have served the citizens of Wayne County by being honest and forthright when performing his job. Instead, he chose to betray the public trust by stealing for his own personal gain. This case sends an important message that this conduct will never be accepted in Wayne County,” said Prosecutor Kym Worthy.
"The alleged misconduct by Mr. Gunn was a betrayal of his fellow government employees and is not representative of the honest and hard work they perform on a daily basis," stated Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "The defendant was entrusted with taxpayer money, which was intended to be used for a specific purpose, not his personal profit. I would like to commend Prosecutor Kym Worthy and the Wayne County investigators for their assistance during this case. The FBI will continue to work with our law enforcement partners to take strong action against individuals who seek to corrupt the integrity and fair administration of government programs."
“The alleged actions of these individuals are nothing short of disgraceful,” said Sheriff Raphael Washington. “To brazenly steal from hardworking taxpayers and fraudulently line their own pockets while holding positions of public trust make these crimes all the more deplorable. Today’s sentencing is another example of our strong commitment to working together.”
The investigation of this case was conducted by the Wayne County Prosecutor’s Office, the Wayne County Sheriff’s Department, and the Federal Bureau of Investigation. In addition, Wayne County Executive Evans and his administration have been assisting and cooperating with the investigation since they first learned of fraudulent activity within their organization. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.
Enid Woman Pleads Guilty to Fraud and Tax ChargesRead the Press Release
Defendant Allegedly Stole or Attempted to Steal More Than $400,000 from Nonprofits’ Accounts
OKLAHOMA CITY – Yesterday, DEBORAH WILCZEK, 45, of Enid, pleaded guilty to making, uttering, and possessing a forged security, and willfully filing a false federal income tax return, announced U.S. Attorney Robert J. Troester.
On May 16, 2023, a federal grand jury returned a 17-count Superseding Indictment against Wilczek, charging her with devising and carrying out a scheme to defraud the YWCA in Enid (YWCA) and the Cimarron Montessori Children’s House (Cimarron). According to the Superseding Indictment, beginning in November 2012 and continuing through April 2019, Wilczek served in leadership positions for the YWCA. She also served on Cimarron’s School Board in various capacities from August 2016 to April 2021. The Superseding Indictment alleges Wilczek routinely accessed both the YWCA and Cimarron’s business bank accounts and made several unauthorized transfers from those accounts to pay for her personal expenses. In total, the Superseding Indictment alleges Wilczek obtained and attempted to obtain approximately $414,951.35 from the two nonprofits, with $139,308.35 coming from YWCA and $275,643 coming from Cimarron. It is also alleged Wilczek forged the signature of two principals of Cimarron to draw money from Cimarron’s business account and deposit funds into bank accounts she controlled.
The Superseding Indictment further alleges Wilczek willfully filed false federal income tax returns for the years 2016 through 2020, where she listed her total income substantially below the income actually received as a result of the fraud described above.
On November 7, 2023, Wilczek pleaded guilty to Counts 10 and 17 of the Superseding Indictment, which charged her with uttering and possessing a forged security, and with willfully filing a false federal income tax return. As part of her plea, Wilczek admitted to possessing a check with a forged signature written on a bank account belonging to Cimarron and filing an income tax return for the 2020 tax year that materially understated her income.
At sentencing, Wilczek faces up to 10 years in federal prison on Count 10, up to three years in federal prison on Count 17, and fines totaling up to $500,000. In her plea agreement, Wilczek additionally agreed to pay restitution to victims of her relevant conduct, which will be determined by the court at sentencing.
This case is the result of an investigation by the FBI Oklahoma City Field Office, IRS Criminal Investigation, and the Enid Police Department. Assistant U.S. Attorneys William E. Farrior and Danielle London are prosecuting the case.
Reference is made to public filings for further information.
Dubois Resident Sentenced to 5 Years in Prison on Drug Trafficking ConvictionRead the Press Release
PITTSBURGH, PA – A resident of Dubois, Pennsylvania, has been sentenced in federal court to 60 months of imprisonment followed by three years of supervised release on his conviction for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Chad Gasbarre, age 37.
According to information presented to the court, Gasbarre was a methamphetamine distributor who obtained over a pound of methamphetamine from Ryan Schoening, which Gasbarre then redistributed.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department for the investigation leading to the successful prosecution of Gasbarre. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Drug traffickers sentenced after smuggling millions of dollars worth of cocaine from Haiti hidden in butterRead the Press Release
ATLANTA - Amos Christolin is the last defendant to be sentenced for his role in a scheme to smuggle dozens of kilograms of cocaine hidden in tubs of butter from Haiti and distribute the drugs within the United States, including through the Atlanta area.
“Dangerous drugs smuggled from overseas threaten our communities and risk serious disruption to our international carriers,” said U.S. Attorney Ryan K. Buchanan. “We are grateful for the excellent coordination of our federal, state, and local law enforcement, and international, partners who made this successful investigation and prosecution possible.”
“Together, we were able to prevent a substantial amount of drugs from reaching the streets. I’m proud to stand alongside our partner agencies as we work to stop these criminal enterprises that pollute our neighborhoods with their poison,” said Acting Special Agent in charge Travis Pickard who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI will continue to work with our federal, state and local law enforcement partners to disrupt and dismantle these drug trafficking organizations and prevent them from flooding our communities with illicit drugs.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On August 24, 2017, U.S. Customs and Border Protection officers in Miami, Florida conducted a border search of a shipment bound for the Atlanta, Georgia area. The shipment entered the United States from Haiti. The search revealed 28 packages of white powder hidden within tubs of Haitian butter. The packages tested positive for cocaine and weighed approximately 28 kilograms.
Homeland Security Investigations Special Agents in Atlanta made a controlled delivery of the drugs to the shipment’s intended destination, a business in Austell, Georgia. Vital Joseph arrived to pick up the shipment.
Further investigation revealed that the source of supply for these drugs, Jean Yves-Durogel, had shipped at least four previous loads of cocaine hidden in butter from Haiti to Joseph in the United States. Joseph then distributed these drugs to individuals in the Miami, Florida, area previously identified to him by Durogel. One of these individuals was Amos Christolin. In all, agents determined that more than 100 kilograms of cocaine had been shipped from Haiti to the United States. The wholesale price for these drugs would have exceeded $3 million.
Amos Christolin, also known as “Patizan,” 52, of Miami, Florida, has been sentenced to 10 years in prison to be followed by five years of supervised release. A jury convicted Christolin of the charges on August 4, 2023.
U.S. District Judges Amy Totenberg and Steve C. Jones, respectively, previously sentenced the co-defendants as follows:
- Jean Yves Durogel, 48, of Port-au-Prince, Haiti, received a sentence of six years, eight months in prison to be followed by five years of supervised release; and
- Vital Joseph, 47, of Douglasville, Georgia, received a sentence of six years, six months in prison to be followed by five years of supervised release.
This case was investigated by Homeland Security Investigations, with valuable assistance provided by U.S. Customs and Border Protection, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Transportation Office of Inspector General, the Douglas County Sheriff’s Office, Georgia State Patrol, and the Republic of Haiti.
Assistant U.S. Attorneys Nicholas N. Joy and C. Brock Brockington prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Downey Tax Preparation Company Owner Sentenced to 2½ Years in Prison for Knowingly Preparing Hundreds of False Tax ReturnsRead the Press Release
LOS ANGELES – An Orange County man was sentenced today to 30 months in federal prison for knowingly preparing nearly 400 fraudulent federal income tax returns that caused a loss of more than $750,000 to the IRS by inflating his clients’ tax refunds without their knowledge and then pocketing the difference between the clients’ true refunds and the inflated ones.
Raudel Sandoval, 48, of Placentia, was sentenced by United States District Judge Sherilyn Peace Garnett, who also ordered him to pay $758,550 in restitution.
Sandoval pleaded guilty on March 22 to two counts of aiding and assisting in the preparation of false and fraudulent tax returns.
Sandoval is a licensed tax preparer and owns RSE Sandoval España Inc., a Downey-based tax preparation company. Sandoval willfully prepared hundreds of false federal and state income tax returns for clients for the tax years 2015 through 2018. On these returns, he claimed false or inflated amounts of the child tax credit, business losses, short-term capital losses and other items to which the taxpayer clients were not entitled.
He falsified the tax returns with deductions and credits that his clients did not incur or had not informed him about. Sandoval also inflated the amounts of deductions and credits that his clients were entitled to claim.
When he finished preparing a tax return, Sandoval gave his clients copies of their returns that were true and correct, but falsely told them that he would file their true-and-correct copies with the IRS on their behalf.
Then, Sandoval inflated his clients’ returns with false and fraudulent deductions and credits and filed these false tax returns with the IRS. The false returns showed a larger refund than on the true-and-correct copies Sandoval had given to his clients.
Sandoval then directed the inflated refunds to himself. He did so by changing the bank account and routing numbers on the filed returns to a bank account he controlled. Sandoval controlled more than 100 bank accounts with several different banks and opened many of the accounts in his clients’ names. But he was the accounts’ only authorized signor. Several of the Sandoval-owned bank accounts had the name “Federal Tax Refund Processing.”
He directed the IRS to send the inflated refunds through a third-party refund processor to be deposited into an account he controlled. Other times, Sandoval caused the IRS to mail a check of the inflated refund to his business address. He then would deposit the check into one of his accounts.
After receiving the inflated refund, Sandoval transferred a portion of it – the amount his clients were expecting to receive based on the true-and-correct tax return copies – to one of his “Federal Tax Refund Processing” accounts. Sandoval then transferred that money to his clients’ bank accounts, causing them to believe their refunds were from a legitimate government source.
Sandoval kept the difference between the true refund and the inflated refund.
For the tax years 2015 through 2018, Sandoval willfully understated his clients’ tax liabilities and caused a loss of $758,550 to the IRS, caused by the filing of at least 389 fraudulent income tax returns.
“[Sandoval] enriched himself while depriving the United States Treasury of monies by artificially inflating his clients’ refunds,” prosecutors argued in a sentencing memorandum. “[Sandoval] needlessly exposed his clients to a risk that the IRS would hold them accountable for the loss caused by the inflated refund amount. In addition, [Sandoval] charged his clients to prepare the returns, of which he had hundreds, to then use their returns as a vehicle for crime.”
IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section prosecuted this case.
As the tax season continues, taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer, as well as steps taxpayers can take to get a jumpstart on filing.
Taxpayers seeking assistance can access the IRS’s free directory of federal tax preparers. The IRS also has programs offering free basic return preparation for qualifying seniors and individuals with low to moderate income. In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
District Man Indicted for Premeditated Murder and Arson Following Multiple-Hour Barricade and Police Standoff in Southeast, D.C.Read the Press Release
WASHINGTON – Sherman Holley, 46, of Washington, D.C., was charged by indictment today for the January 2023 murder of James Brooks, Jr. and subsequent arson of a residence following a barricade and standoff, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).
The indictment charges Holley with first-degree premeditated murder while armed, arson, resisting arrest, and related offenses, all committed while Holley was on pretrial release.
According to the government’s evidence, in the evening on January 15, 2023, Holley stabbed Brooks, Jr. multiple times in the torso while the men were walking together through an alleyway near the Southeast, Washington, D.C. home where Holley had been residing. Brooks, Jr. was pronounced dead at the scene. Holley fled the scene but returned to the residence the next day. When law enforcement responded, Holley barricaded himself inside the home and, after a multiple-hour standoff with police, set the residence on fire before surrendering.
Holley was arrested for the murder on January 16, 2023, and has been detained pending trial since his arrest. At the time of these events, Holley was on release pending trial in another felony case in Washington, D.C.
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.
District Man Indicted for Premeditated Double Murder Inside Home in Southeast, D.C.Read the Press Release
WASHINGTON – James P. Jones, 42, of Washington, D.C., was charged by indictment today, for the February 2023 murders of David Wright and Nathaniel Howard, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).
The indictment charges Jones with two counts of first-degree premeditated murder while armed committed with aggravating circumstances, two counts of possession of a firearm during a crime of violence, and one count of unlawful possession of a firearm by a person previously convicted of a crime punishable by imprisonment for a term exceeding one year.
According to the government’s evidence, in the early afternoon on February 26, 2023, Jones shot Howard three times and Wright at least six times inside Howard’s home in Southeast, Washington, D.C., where Jones had been residing. Both men were pronounced dead at the scene. Jones, who at the time was on supervised release and GPS monitoring related to previous felony convictions in Washington, D.C., was located and arrested within approximately one hour of the murders. A firearm was recovered from his person and has been ballistically linked to the murders. Jones 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.
Des Moines Man Sentenced to 34 Years for Child Pornography OffenseRead the Press Release
DES MOINES, IA – On November 2, 2023, a Des Moines man was sentenced to 32 years in prison after pleading guilty to the crime of transportation of child pornography and two additional years for violating his term of federal supervised release.
In 2022, Adam Christopher Evans, 39, amassed an extensive collection of child sexual abuse material. Over several months, Evans stockpiled over 500 images and 69 videos depicting the sexual exploitation of children, including infants and toddlers.
In 2021, Evans was convicted in federal court of failure to register as a sex offender. He was required to register as a sex offender because of a 2011 conviction for sexual exploitation of a minor under Iowa law. Evan’s supervised release was revoked, and he was sentenced to two years consecutive to his 32-year sentence.
Following his prison term, Evans will be required to serve 10 years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. Homeland Security Investigations and the United States Probation Office investigated this case. Assistant United States Attorney Laura M. Roan prosecuted the case.
This case was prosecuted as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. For more information about Internet safety education, please visit https://www.justice.gov/psc and click on the resources tab.
DC Man Pleads Guilty to Illegal Possession of a Firearm in Relation to Drug TraffickingRead the Press Release
WASHINGTON – Ahmad Robertson, 32, of Washington, D.C., pleaded guilty on November 7, 2023 to one count of possession of a firearm in furtherance of a drug trafficking crime. The announcement was made by U.S. Attorney Matthew M. Graves, Special Agent in Charge Derek W. Gordon, of Homeland Security Investigations (HSI) and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Robertson entered the guilty plea in the United States District Court for the District of Columbia. U.S. District Court Judge Carl J. Nichols scheduled a sentencing hearing for February 16, 2024. Robertson has been in custody since June 1, 2023.
According to court documents, on June 1, 2023, officers from the U.S. Marshals Capital Area Regional Fugitive Task Force (CARFTF), HSI, MPD and other law enforcement agencies executed a search warrant on Robertson’s home and vehicle located in Washington, D.C. Law enforcement officers identified themselves and ordered the occupants to come out of the residence. After fifteen minutes, Robertson exited the premises and was taken into custody. Officers searched the defendant and discovered two baggies of white powder in his pants pockets, which was later determined to be cocaine. Officers then searched Robertson’s vehicle and discovered a digital scale and a privately manufactured AR-style pistol with no serial number, loaded with one 5.56 caliber rounds in the chamber and 28 such rounds in the magazine. The entire magazine of the pistol had a total capacity of 30 rounds.
When officers searched Robertson’s home, they recovered two additional firearms, extended magazines, assorted rounds of ammunition of various calibers, drug paraphernalia including additional digital scales, a blender with fentanyl residue, and fentanyl.
This case was investigated by HSI and MPD. It is being prosecuted by Assistant U.S. Attorney Will Hart and Special Assistant U.S. Attorney Jordan Leiter.
Corporate Executive Pleads Guilty to Misappropriating Combustion Turbine Trade SecretsRead the Press Release
RICHMOND, Va. – A former Executive for a global industrial manufacturing conglomerate (Company 1), pleaded guilty today to conspiracy to convert trade secrets.
According to court documents, John Gibson, 58, of Winter Park, Florida, was the former Executive Vice President of Power Generation and the Head of Sales for North America for Company 1. From May to June of 2019, he conspired with others to misappropriate combustion turbine-related trade secrets of two competitor companies, General Electric Company (GE) and Mitsubishi Heavy Industries, Ltd. (MHI), for the benefit of Company 1. Gibson’s co-conspirators were Theodore Fasca, 57, of Richmond, the former Director of Generation System Planning at Dominion Energy, Inc. (Dominion), a Virginia-based utility company, and Michael Hillen, 56, of Midlothian, a former Account Manager at Company 1.
In March 2019, Dominion sought to build a “Peaker" combustion turbine power plant in Chesterfield with a projected cost of upwards of $500 million. Peaker plants are specifically designed to add electricity generation capacity to alleviate high grid load and improve electric grid resiliency. To build the plant, Dominion opened a competitive, closed bid process soliciting requests for proposals from qualified companies. Three companies bid for the work: GE, MHI, and Company 1. All companies signed non-disclosure agreements restricting the disclosure of confidential information provided to Dominion during the bid.
After GE, MHI, and Company 1 submitted their closed bids to Dominion, Fasca and Hillen organized to repeatedly funnel GE and MHI confidential information, often using private email accounts, to Company 1. Gibson received the GE and MHI trade secrets knowing such information to be illegally obtained. Nevertheless, Gibson strategically disseminated it to other senior executives, to leaders within Company 1’s business intelligence unit, and to representatives of Company 1’s parent company in Germany.
Gibson’s dissemination of the GE and MHI trade secrets was calculated to provide Company 1 with a competitive advantage in the bid for the Dominion Peaker Project, to the detriment of GE and MHI; improve Company 1’s business intelligence; and provide Company 1 with a competitive advantage in future bids against GE and MHI. After learning of GE’s and MHI’s bids for the Dominion Peaker Project, Gibson authorized and obtained approvals within Company 1, including from the CEO for Power Generation, to resubmit a lower bid for the Dominion Peaker Project and undercut GE’s bid. Company 1 won the bid for the Peaker Project with Dominion.
The losses to victims reasonably foreseeable to Gibson were between $25 million and $65 million. The losses to victims reasonably foreseeable to Fasca and Hillen were between $9.5 million and $25 million.
Both Fasca and Hillen have pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on March 1, 2024, and April 11, 2024, respectively. Both defendants face a maximum penalty of 5 years in prison. Gibson is scheduled to be sentenced on May 29, 2024. He faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Avi Panth and Kenneth R. Simon, Jr. are prosecuting the case. Former Assistant U.S. Attorney Michael R. Gill assisted the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:23-cr-137, 3:23-cr-83, and 3:23-cr-120.
Convicted Felon Sentenced for Prison Unemployment Benefits Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – A man who formerly resided in Newport News was sentenced today to 68 months in prison for his role to defraud the government of pandemic-related unemployment benefits.
According to court documents, from approximately May 2020 through May 2021, Reginald Prentice Phillips, 39, was incarcerated at Hampton Roads Regional Jail for striking a woman in the face and choking her three times in front of her children, in addition to shooting another victim three times because the victim reportedly owed him $10. Phillips, a documented gang member, spearheaded a scheme with his non-incarcerated co-conspirator to fraudulently obtain federal unemployment benefits related to the COVID-19 pandemic. Phillips recruited at least 13 other inmates to provide their personal identifying information (PII) to his co-conspirator, who filed fraudulent applications for unemployment benefits on their behalf. Phillips and his co-conspirator discussed the progress of the fraudulent claims on jail calls, and Phillips would instruct his co-conspirator on where to send the unemployment benefit funds. Phillips received his share of the benefits through his commissary account. Once the commissary account reached its maximum balance, Phillips’ co-conspirator deposited the funds in other inmate’s accounts, who would then give the funds to Phillips.
In total, the defendant was responsible for an actual loss amount of $210,310 from the Virginia Employment Commission on behalf of Department of Corrections inmates who were not entitled to receive unemployment benefits.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Troy W. Springer, Special Agent in Charge of the U.S. Department of Labor - Office of Inspector General (DOL-OIG), National Capital Region, made the announcement after sentencing by Senior U.S. District Judge Raymond A. Jackson.
Special Assistant U.S. Attorney Alyssa Levey-Weinstein prosecuted the case.
On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-73.
Chatham County man indicted on multiple child sexual exploitation charges, including production of child pornographyRead the Press Release
SAVANNAH, GA: A Chatham County man has been indicted on multiple federal charges alleging sexual exploitation of children.
Sheldon Jason Burch, 49, of Savannah, is being held in the Chatham County Detention Center after being arrested on a criminal complaint, and now has been indicted on three counts of Production of Child Pornography, and one count each of Receipt of Child Pornography and Possession of Child Pornography, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia.
Conviction on the production charges carries a statutory minimum sentence of 15 years in prison, up to 30 years, while receipt carries a mandatory minimum sentence upon conviction of five years, up to 20, and the penalty upon conviction for possession of child pornography is up to 20 years in prison. There is no parole in the federal system, and conviction on any of the charges could include substantial financial penalties and restitution, a requirement to register as a sex offender, and a period of supervised release following any prison term.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
“Criminal allegations involving the sexual exploitation of children are horrific, particularly when they involve subjecting minor victims to portrayal in pornographic images,” said U.S. Attorney Steinberg. “The creation and continued viewing of those images is tremendously traumatizing to victims, and our office works diligently to protect them and hold their abusers accountable.”
The indictment alleges that Burch, from on or about June 2006 through 2016, produced sexually explicit images of three minor victims, and up until June 2023 received and possessed additional images of child sexual exploitation.
Investigators are seeking information on other unidentified potential victims found on images in electronic devices seized from Burch’s residence, located on Cowan Avenue in Savannah, and are asking anyone who might have had contact with Burch to call the FBI Savannah Resident Agency at 877-644-0277. Investigators believe that many of the explicit images of the child victims in this case were taken at Burch’s residence over a period of several years.
The case is being investigated by the FBI and the Chatham County Police Department, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Jason W. Blanchard.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Charlotte Child Psychiatrist Is Sentenced to 40 Years in Prison for Sexual Exploitation of A Minor and Using Artificial Intelligence to Create Child Pornography Images of MinorsRead the Press Release
CHARLOTTE, N.C. – David Tatum, 41, a child psychiatrist in Charlotte, was sentenced today to 40 years in prison followed by 30 years of supervised release for sexual exploitation of a minor and using artificial intelligence (AI) to create child pornography images of minors, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Tatum was also ordered to pay restitution in an amount to be determined within 90 days, a $100 special assessment per count of conviction, and a special assessment totaling $99,000 under the Amy, Vicky, and Andy Child Pornography Victim Assistance Act (AVAA). After he is released from prison, Tatum will also be required to register with the Sex Offender Registry Board in any state or jurisdiction where he works or resides.
Robert M. DeWitt, Special Agent in Charge of Federal Bureau of Investigation (FBI) in North Carolina joins U.S. Attorney King in making today’s announcement.
“As a child psychiatrist, Tatum knew the damaging, long-lasting impact sexual exploitation has on the wellbeing of victimized children. Regardless, he engaged in the depraved practice of using secret recordings of his victims to create illicit images and videos of them,” said U.S. Attorney King. “Tatum also misused artificial intelligence in the worst possible way: to victimize children. Today’s 40-year sentence underscores our efforts to do all we can to bring justice to child victims. As the field of artificial intelligence advances, my office is committed to prosecuting predators who seek to exploit this technology to inflict harm on children.”
“It is horrific to believe anyone would secretly record children undressing and showering for their own sexual gratification. And when the evidence proves that person is a doctor entrusted to help children through difficult mental health situations, it is inconceivable,” said FBI Charlotte Special Agent in Charge DeWitt. “The FBI will never stop working to put predators like Tatum behind bars for a very long time.”
According to filed court documents, evidence presented at Tatum's trial and witness testimony, between 2016 to 2021, Tatum possessed images and videos of child pornography. As trial evidence established, in or about July 2016, Tatum secretly recorded a minor while the minor was undressing and showering. A forensic analysis of electronic devices revealed that Tatum produced the video of the minor and possessed it, along with other images and videos of child pornography. According to trial evidence, Tatum made similar surreptitious recordings of others, including of his patient during an outpatient visit who had just turned 18 years old five days before the recording.
Additionally, trial evidence also established that Tatum used AI to digitally alter clothed images of minors making them sexually explicit. Specifically, trial evidence showed that Tatum used a web-based artificial intelligence application to alter images of clothed minors into child pornography. Two of the images Tatum used AI to modify were from a school dance and a photo commemorating the first day of school.
On May 4, a federal jury in Charlotte convicted Tatum of one count of production of child pornography, one count of transportation of child pornography, and one count of possession of child pornography. Tatum is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended FBI for their investigation of the case.
Assistant United States Attorneys Daniel Cervantes and Mark T. Odulio of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Burlington Man Pleads Not Guilty to Federal Robbery ChargeRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Eric Edson, 52, of Burlington, Vermont appeared in United States District Court yesterday for an arraignment and pleaded not guilty to violating the Hobbs Act by obstructing commerce by robbery. A federal grand jury returned a one-count indictment against Edson on September 28, 2023. Edson was in state custody following his September 7, 2023 arrest and appeared in federal court yesterday pursuant to a writ filed by the United States. United States Magistrate Judge Kevin J. Doyle ordered Edson detained pending trial, which has not yet been scheduled.
According to court records, on August 24, 2023, officers from the Burlington Police Department (BPD) responded to a report of a robbery at the Sierra Trading Post located at 555 Shelburne Road in Burlington, Vermont. Officers learned that a man, later identified as Edson, attempted to leave the store with unpaid merchandise. When a Sierra Trading Post employee asked Edson to return the merchandise to the store, Edson told the employee “I’ll blow your head off” and partially pulled an item that appeared to be a firearm from his hooded sweatshirt pocket. Edson then ran to a vehicle and drove away. Edson remained on the run until he was ultimately apprehended by law enforcement on September 7, 2023.
The U.S. Attorney’s Office notes that the indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty. If convicted, Edson faces a maximum of 20 years in prison. Any sentence in the case will be advised by the Federal Sentencing Guidelines.
U.S. Attorney Nikolas P. Kerest credited the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Burlington Police Department for their work in the investigation, and thanked the Vermont State Police, the Vermont Fish and Wildlife Warden Service, the Lamoille County Sheriff’s Department, the United States Coast Guard, the Colchester Police Department, the UVM Police Department, the Milton Police Department and the Franklin County Sheriff’s Department for their efforts to safely apprehend Edson.
Assistant United States Attorney Nicole Cate represents the government. Edson is represented by Laura Wilson, Esq. and Federal Public Defender Michael Desautels.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
Bethel Park Man Pleads Guilty to Illegally Transporting Venezuelan Woman into the United StatesRead the Press Release
PITTSBURGH, PA - A resident of Bethel Park, Pennsylvania, pleaded guilty in federal court to a charge of Transporting an Illegal Alien within the United States, United States Attorney Eric G. Olshan announced today.
Blake Thomas Babin, 59, pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that Babin, a Lieutenant with the Bethel Park Police Department, from on or about October 20, 2022, through on or about December 30, 2022, provided funding to an 18-year-old Venezuelan female living in Colombia for her transportation from Colombia to the border between Mexico and the United States so that she could cross illegally into the United States. After two unsuccessful attempts, the female was able to get through the border somewhere near El Paso, Texas, where Babin was waiting to transport her to Phoenix and then to Pittsburgh. Babin met the female in Colombia where she was working as a prostitute. Text exchanges between the two, obtained during the investigation of the case, revealed, in part, that Babin helped smuggle the female into the United States and then transported her knowing that she illegally entered the country because he “loved her”, wanted her to help him “keep his house”, and because she enjoyed sex.
Judge Colville scheduled sentencing for March 13, 2024, at 10:00 a.m. The law provides for a total sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Babin remain on bond.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Babin.
Battle Creek Man Sentenced to 30 Years in Prison for Drug TraffickingRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Khilon Shaquille Samuel, 29, of Battle Creek, was sentenced to 30 years in federal prison after being convicted of Possession of Controlled Substances with Intent to Distribute.
“My office is working closely with our local, state, and federal law enforcement partners to disrupt illegal drug trafficking rings that are pushing poison onto our streets,” said U.S. Attorney Totten. “We are committed to holding traffickers fully accountable to help keep our neighborhoods safe.”
Police intercepted Samuel as he returned from Detroit to the Battle Creek area on April 30, 2022, and recovered more than 17 pounds of methamphetamine in his car. Investigators executed a search warrant at Samuel’s home later that day and found an additional 183 grams of methamphetamine, approximately one-quarter kilogram of fentanyl, as well as 29 rounds of ammunition.
“Methamphetamine is an addictive and destructive substance. The amount of fentanyl seized in this case could potentially kill 125,000 people,” Orville O. Greene, Special Agent in Charge of Detroit Field Division of the Drug Enforcement Administration. “We will continue to work with our law enforcement partners to hold those who distribute illicit drugs accountable for their actions.”
“The Battle Creek Police Department takes great pride in maintaining productive relationships with our federal partners,” said Shannon Bagley, BCPD Police Chief. “This is an outstanding example of how these partnerships lead to successful prosecutions which help make the City of Battle Creek a safer place to live.”
“HSI is made exponentially stronger due to the valuable partnerships we maintain,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “The success of this investigation and many others is a direct reflection of the professionalism and dedication of HSI, and our law enforcement partners who refuse to allow criminals, like Samuel, to continue to funnel narcotics into our communities. Those partnerships and the mission to remove drug traffickers are vital to ridding neighborhoods of dangerous narcotics and improving public safety.”
This case was investigated by the Battle Creek Police Department, the Drug Enforcement Administration, Homeland Security Investigations, and the Michigan State Police.
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Approximately 150 Business and Public Sector Leaders Participate in Cybersecurity Conference Co-Hosted by the Maryland U.S. Attorney’s Office and the University of MarylandRead the Press Release
Baltimore, Maryland – On November 6, 2023, approximately 150 business and public sector leaders participated in a cybersecurity conference co-hosted by the U.S. Attorney’s Office for the District of Maryland and the University of Maryland. The conference included panels of cybersecurity experts from government and the private sector discussing the emerging threats, best practices, and effective collaboration between federal, state, and local agencies, the private sector, and law enforcement.
“Cybercrime is an ongoing threat to all of us in Maryland. The time to talk about preventing and responding to a cyber incident is before something happens,” said United States Attorney Erek L. Barron. “I am grateful for the thoughtful and frank conversations the conference inspired and I look forward to continued collaboration and partnership between the government, business, and public sectors to protect our critical infrastructure. I also want to thank our partners at the University of Maryland for their co-sponsorship of this important conference.”
“We all know that we are living in an unprecedented time of technological advancement. From the rapid adoption of artificial intelligence and machine learning applications to advances in quantum computing and quantum networks, we are at the start of an era that has tremendous potential for radical change,” said University of Maryland President Darryll J. Pines. “That’s why here at the University of Maryland we are working every day to understand technology’s benefits and limits, support experts who can see challenges even before they appear on the horizon, and educate a generation of fearless leaders who understand their obligations to our collective wellbeing.”
Panelists from the United States Department of Justice, the National Security Agency, universities, and travel, energy and financial sectors presented information on identifying threats and weaknesses, managing a cyber incident, and coordinating with law enforcement. The conference also provided networking opportunities to allow attendees to continue their conversations and enhance cyber security in all sectors throughout Maryland.
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/cybersecurity.
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All Members of LA Dank DMV Plead Guilty to Conspiracy and Related Firearms ChargesRead the Press Release
WASHINGTON – Federal law enforcement has successfully prosecuted eight members of a marijuana distribution conspiracy, responsible for bringing hundreds of pounds of marijuana from California to the DMV area and possessing nineteen firearms, including machineguns, as part of their distribution scheme, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne A. Jacobs.
Abubakr Banire, Christopher Akinduro, Kavon Duncan, Joe Blyther, Isaac Akinduro, Avery Bost, Omar Butler, and Randall Lance, all members of the “LA Dank DMV” crew, have entered guilty pleas in U.S. District Court for the District of Columbia.
The guilty pleas follow a lengthy investigation led by the FBI’s Washington Field Office and the United States Attorney’s Office for the District of Columbia. According to court documents, between May of 2021 and December of 2021, crew members operated a sophisticated conspiracy to traffic large amounts of high-grade marijuana from California to the DMV area for distribution to customers. As part of their distribution scheme, members of the crew relied heavily on mass marketing through three dedicated LA Dank websites, as well as social media platforms like Instagram where individual crew members would advertise the LA Dank brand and LA Dank branded marijuana for sale. Crew members also used rental properties to set up stash houses or points of sale that were used to conduct drug distribution operations for a short period of time before moving on to different locations.
The crew is known - and was found to possess - numerous firearms, including semi-automatic and fully automatic machineguns, and devices used to convert semi-automatic firearms into fully automatic machineguns. Certain members of the crew also pleaded guilty to the possession of firearms in furtherance of their drug trafficking operations. In total, approximately 122 pounds of marijuana, 19 firearms, and 10 machinegun conversion devices were recovered. Three of these 19 firearms were discovered to be operational machineguns that had been modified with machinegun conversion devices. Seven of these machinegun conversion devices were found in an “LA Dank” branded bag. Two of these firearms were privately made AR-pistol style machineguns, sometimes referred to as “ghost guns.”
Ledgers and receipts show that the crew trafficked well over 100 kilograms of marijuana into the DMV area for distribution.
A list of the named defendants, date of their pleas and charges are below.
DEFENDANT NAME
DATE OF PLEA
CHARGES PLEAD TO
DATE OF SENTENCING
Abubakr Banire
9/29/2023
Conspiracy to Distribute Marijuana
Unlawful Possession of a Machinegun
Unlawful Possession of a Firearm
Possessing a Firearm During and in Relation to a Drug Trafficking Offense
4/16/2024
Christopher Akinduro
10/3/2023
Conspiracy to Distribute Over 100 Kilograms of Marijuana
1/17/2024
Kavon Duncan
10/5/2023
Conspiracy to Distribute Over 100 Kilograms of Marijuana
Possession with Intent to Distribute Marijuana
1/26/2024
Joe Blyther
11/8/2023
Conspiracy to Distribute Marijuana
Unlawful Possession of a Machinegun
Unlawful Possession of a Firearm
Possessing a Firearm During and in Relation to a Drug Trafficking Offense
4/22/2024
Isaac Akinduro
10/11/2023
Conspiracy to Distribute Marijuana
3/15/2024
Avery Bost
10/27/2023
Conspiracy to Distribute Marijuana
3/6/2024
Omar Butler
11/3/2023
Conspiracy to Distribute Marijuana
3/1/2024
Randall Lance
5/23/2023
Conspiracy to Distribute Over 100 Kilograms of Marijuana
Sentenced on 10/10/2023 to 63 months of incarceration.
The prosecutions followed a joint investigation by the FBI’s Washington Field Office, in partnership with the Metropolitan Police Department, Prince George’s County Police Department, Anne Arundel County Police Department. The case was prosecuted by Assistant United States Attorneys Justin F. Song, Meredith E. Mayer-Dempsey, and Thomas Strong.
3 Arrested for Allegedly Running Sex Trafficking Operation That Victimized Teenage Girls at Redlands Massage ParlorRead the Press Release
RIVERSIDE, California – Three defendants who allegedly trafficked teenage girls to engage in commercial sexual activities at a San Bernardino County massage parlor have been arrested on a federal grand jury indictment, the Justice Department announced today.
Law enforcement have arrested the following defendants who are charged in the indictment with one count of conspiracy and two counts of sex trafficking of a minor:
- Ji Ryang Chae, 54, a.k.a. “Chae Yu” and “BB,” who was the manager of Ace Care Massage Parlor in Redlands and currently resides in Colorado Springs, Colorado;
- Jasmine Dakota Beverly, 24, a.k.a. “Bbybegirl,” the manager-in-training at Ace Care, formerly of Redlands but currently resides in Costa Mesa; and
- Earnest Akindele Teamer, 26, a.k.a. “Scooby,” “Splash,” and “$koobystacks,” who acted as a recruiter for Ace Care, of Redlands.
Chae was arrested on November 3 and made her initial appearance yesterday in United States District Court in Denver. Teamer, who was arrested on July 27, has been ordered jailed without bond and remains in federal custody. Beverly was arrested on August 3 and is free on $15,000 bond.
Beverly and Teamer have pleaded not guilty to the charges against them and June 18, 2024 trial date has been scheduled in this case. Chae’s arraignment is expected in United States District Court in Riverside in the coming weeks.
According to an indictment, from at least March 2022 to April 2022, Beverly and Teamer recruited girls under the age of 18 years old to work as commercial sex workers at Ace Care. Beverly allegedly would provide transportation to Minor Victim 1 – a 15-year-old girl – and Minor Victim 2 – a 14-year-old girl.
As recruiters, Beverly allegedly took $10 from Minor Victim 1 for each customer the girl saw while Teamer allegedly took $200 per week from the victim.
Chae, as Ace Care’s manager, allegedly would require workers to pay “rent” in return for condoms, cleaning supplies, and a place to work, and she also would take approximately $2,000 per month for “rent” from Minor Victim 1.
Teamer, who acted as a “pimp” for Minor Victim 2, would require her to give him some or all the proceeds from her work as a commercial sex worker, the indictment alleges.
In a separate indictment, Teamer is charged with one count of transportation of a minor with intent to engage in criminal sexual activity, one count of production of child pornography, one count of distribution of child pornography, and two counts of receipt of child pornography. Teamer has pleaded not guilty to these charges and has a March 5, 2024 trial date scheduled in that case.
Teamer allegedly produced child sexual abuse material, namely a video of himself engaging in sexual activity with a 15-year-old girl.
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 on all counts, the defendants would face a statutory maximum sentence of life in federal prison. Chae and Beverly would face a mandatory minimum sentence of 10 years in federal prison. Teamer would face a mandatory minimum sentence of 15 years in federal prison.
Homeland Security Investigations and the Redlands Police Department are investigating this matter.
Assistant United States Attorney Tritia L. Yuen of the Riverside Branch Office is prosecuting these cases.
Tuesday 7 November 2023
York County Man Sentenced to Fifteen Months’ Imprisonment for Drug OffenseRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rasheed Ibrahim, age 23, formerly of York County, Pennsylvania, was sentenced on November 6, 2023, by the Honorable Jennifer P. Wilson to 15 months’ imprisonment to be followed by two years of supervised released based upon his previously entered guilty plea for conspiracy to distribute and possess with intent to distribute marijuana. Ibrahim is currently incarcerated at the York County Prison on related local charges.
According to United States Attorney Gerard M. Karam, Ibrahim and co-defendant Infinite Corbett possessed with the intent to distribute marijuana on February 27, 2021, in York City, Pennsylvania. Corbett pled guilty to conspiracy to distribute and possess with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime and was sentenced on March 21, 2023, to serve 65 months’ imprisonment.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the York City Police Department and was prosecuted by former Assistant U.S. Attorney Jaime M. Keating, and Assistant U.S. Attorneys Johnny Baer and Bruce D. Brandler.
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Wolcott Man Sentenced to Prison for Illegally Manufacturing and Dealing AR-15-Style Assault RiflesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that GREGORY LEARY, 35, of Wolcott, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 30 months of imprisonment, followed by two years of supervised release, for manufacturing and dealing AR-15-style firearms without a license. Judge Underhill also ordered Leary to pay a $2,000 fine.
According to court documents and statements made in court, between January and March 2022, Leary received Polymer80 firearms kits from another individual and assembled them in the basement of his Wolcott residence. On three occasions during that period, Leary provided to that individual eight AR-15-style assault rifles with collapsible stocks and 30-round magazines; a “P80” 9mm semi-automatic handgun with a fully loaded, 10-round magazine; 190 rounds of .223 ammunition; one “Magtec” box containing 50 rounds of .40 caliber ammunition; and one “Independence” box containing 50 rounds of 9mm ammunition. The assault rifles and 9mm handgun contained no serial numbers.
Leary pleaded guilty on June 13, 2023, and admitted that he manufactured and dealt a total of more than 25 firearms to the same individual knowing that the individual was selling the firearms to others.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Connecticut State Police Statewide Firearms Trafficking Task Force (SFTTF) and Statewide Urban Violence Cooperative Crime Control Task Force (SUVCCCTF/Gangs Unit), assisted by the Statewide Narcotics Task Force (SNTF) Southwest and North Central Offices, and the Bridgeport, Shelton, Orange, Waterbury, and Hartford Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens and Rahul Kale through Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Wiggins Man Sentenced to 15 Years in Prison for Drug TraffickingRead the Press Release
Hattiesburg, MS – A Wiggins man was sentenced to 15 years in federal prison for possession with intent to distribute 222 grams of methamphetamine.
According to court documents, on February 23, 2022, in Lumberton, Mississippi, Glenn Grant, 37, sold 222 grams of 98% pure methamphetamine to a confidential source.
Grant was indicted by a federal grand jury on February 22, 2023, and he pled guilty on July 17, 2023.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Eric DeLaune of Homeland Security Investigations (HSI) made the announcement.
This case was investigated by HSI, with assistance from the Mississippi Bureau of Narcotics.
Assistant U.S. Attorney Shundral H. Cole prosecuted the case.
Whitefish interior designer admits defrauding customers of approximately $900,000Read the Press Release
MISSOULA — The owner of an interior design company in Whitefish today admitted charges in a scheme in which she defrauded customers of approximately $900,000 and used the money for personal expenses, U.S. Attorney Jesse Laslovich said.
Jennifer Michele Helm, aka Jennifer Michele, 45, pleaded guilty to wire fraud and to aggravated identity theft. Helm faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the fraud charge and a mandatory minimum of two years in prison, consecutive to any other sentence, a $250,000 fine and one year of supervised release for aggravated identity theft.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for March 14, 2024, before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Helm was detained pending further proceedings.
The government alleged that Helm, while doing business as Sage Interior Designs, LLC, Interior Design Services, and Jennifer Michele LLC, defrauded at least 12 customers of approximately $900,000 from 2016 through 2023. To execute the scheme, Helm entered into agreements with customers to provide goods and services, usually by promising to order furnishing and fixtures as part of construction and remodeling projects. In some instances, Helm presented her clients with invoices for items she knew she had not ordered and that clients never received. In addition, Helm convinced two clients, a married couple, to give her their credit card number, which she was authorized to make purchases on the couple’s behalf. Rather than make those purchases, Helm used the credit card and directed the proceeds of the transactions into her bank account. When interviewed by the FBI, Helm said she was responsible for any misspent funds. She also admitted she knew the money she obtained using the couple’s credit card was deposited into her personal bank account, but she did not remember how many unauthorized transactions she made with the card.
Assistant U.S. Attorney Timothy J. Racicot is prosecuting the case. The FBI conducted the investigation.
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Webster woman going to prison for stealing hundreds of thousands of dollars from WegmansRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Alicia Torres, 48, of Webster, NY, who was convicted of wire fraud, was sentenced to serve one year in prison by U.S. District Judge David G. Larimer. Torres was also ordered to pay restitution totaling $578,943.86.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that Torres was employed at Wegmans Food Market, Inc. for approximately 27 years. Between 2014 and February 2023, she utilized the Enterprise System, which is used to fill customers’ prescriptions, to fraudulently process approximately 350 credit card refund requests in customers’ names with fictitious amounts. The fraudulent refund amounts were based on what Torres observed customers receiving in previous transactions. She then tricked the pharmacist on duty to sign off on and authorize the fraudulent refund requests. Once refund requests were approved, Torres paid the refund amounts to herself by swiping her bank debit card in Wegmans’ point of sale system. Between 2014 and February 2023, Torres received $568,021.69 in fraudulent refunds. In addition, between 2020 and February 2023, Torres fraudulently used Wegmans gift cards to steal $10,922.17 from Wegmans.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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Waterloo Man Sentenced to over 15 Years in Federal Prison for His Role in Ice Methamphetamine RingRead the Press Release
A man who was caught with over 380 grams of ice methamphetamine and over $25,000 in drug money was sentenced November 2, 2023, to more than 15 years in federal prison.
Timothy Michael Webber, age 46, from Waterloo, Iowa, received the prison term after a February 2, 2023 guilty plea to one count of possession with intent to distribute methamphetamine.
Evidence at a prior hearing showed that Webber was intercepted over the wiretap ordering pounds of methamphetamine from the David Belton drug organization in Cedar Rapids. In his plea agreement, Webber admitted that in April 2022, state investigators searched his residence in Waterloo and seized over 380 grams of ice methamphetamine and $25,550 in cash proceeds of prior ice methamphetamine sales. Webber ran from officers who executed the search at the residence but was caught.
Eleven other individuals were charged in the same investigation, ten of whom have been sentenced:
- Kiyonte Levell Sowell was sentenced to 144 months’ imprisonment;
- Albert Henry Bailey was sentenced to 88 months’ imprisonment;
- Jesus Vera was sentenced to 151 months’ imprisonment;
- Calub Joseph Storlie was sentenced to 200 months’ imprisonment;
- Christopher Eric Curley was sentenced to 175 months’ imprisonment;
- David Poitier Belton was sentenced to 396 months’ imprisonment;
- Derek Michael Mims was sentenced to 360 months’ imprisonment;
- Phillip Lanell Rogers was sentenced to 135 months’ imprisonment;
- Anton Tarrice Whitney, Jr. was sentenced to 216 months’ imprisonment;
- Elmer Mims was sentenced to 235 months’ imprisonment.
Webber was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Webber was sentenced to 188 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Webber is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the DEA Task Force in Cedar Rapids and the Federal Bureau of Investigation. The DEA Task Force in Cedar Rapids consists of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement. The case was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22‑CR‑39‑CJW‑MAR.
Walton County Man Sentenced to 15 Years in Prison for Possessing Child Sexual Abuse MaterialRead the Press Release
ATHENS, Ga. – A Walton County, Georgia, resident was sentenced to serve 15 years in prison after he was convicted by a federal jury in February of possessing child sexual abuse material (CSAM) resulting from a GBI-led undercover investigation of an online peer-to-peer sharing network.
Johnathan Remsen, 38, of Loganville, Georgia, was sentenced to serve 180 months in prison to be followed by 25 years of supervised release by U.S. District C. Ashley Royal today after he was found guilty of possession of child pornography on Feb. 1. Remsen will have to register as a sex offender for life upon release from prison. Remsen is not eligible for parole.
“Our office will not hesitate to use the federal resources at our disposal to hold individuals accountable for downloading, sharing, creating or contributing to the sexual abuse and exploitation of children,” said U.S. Attorney Peter D. Leary. “Every time a person views child sexual abuse material, they become complicit in the appalling abuse of a child. Working with our dedicated law enforcement and community partners, we will do everything in our power to protect the innocent and bring child predators to justice.”
“The victimization of a child doesn’t end when that child’s pornographic images are recorded. Every time an individual like Remsen possesses those images and views them for personal gratification, that child is victimized again and again,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will always make it a priority to protect our most vulnerable assets, our children.”
“Federal prosecution sends a clear message that downloading and viewing child sexual abuse material is a serious crime. The GBI’s Child Exploitation and Computer Crimes Unit investigates numerous cases just like this one and will not slow down until these perpetrators are held accountable. We’ll continue to work with strong federal partners, like the United States Attorney’s Office, to seek justice for these vulnerable victims,” said GBI Director Chris Hosey.
According to court documents and evidence presented at trial, GBI conducted an undercover investigation on the peer-to-peer sharing network BitTorrent in July 2017. An undercover agent received 29 videos containing CSAM from an IP address traced back to a Walton County residence where Remsen resided. Law enforcement searched the residence in Jan. 2018, recovering a computer tower belonging to Remsen that contained 2,357 picture files and 196 video files of suspected CSAM (also known as child pornography). Remsen was interviewed by law enforcement and made statements indicating that he “accidentally” downloaded CSAM, and then later stated that it was not an accident. He further admitted that he looked at CSAM, but he never meant to download or keep it. The explicit photos and videos contained child sexual abuse material of children 12 years old and younger.
The case was investigated by the GBI and the FBI.
Criminal Chief Leah McEwen prosecuted the case. Assistant U.S. Attorney Alex Kalim previously assisted with the prosecution.
Upshur County man charged with interstate threats and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Bobby Cobb, age 53, of Buckhannon, West Virginia, has been charged with interstate threats and firearms charges.
Cobb was indicted today on four counts of interstate communications with a threat to kidnap or injure and one count of unlawful possession of a firearm. According to court documents, Cobb allegedly sent threatening emails and text messages to his victim over several weeks. The communications threatened to injure and kill the victim, her family members, and friends. Officers conducted a search warrant on Cobb’s home and found a shotgun. Cobb has a previous conviction of domestic violence, prohibiting him from having firearms.
Cobb is facing up to 5 years for each of the threat counts and faces up to 15 years in federal prison for the firearms charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Christine Utt is prosecuting the case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Upshur County Sheriff’s Office, and the Mountain Region Drug Task Force investigated.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorneys Thompson and Ihlenfeld Join with FBI and American Jewish Committee Leaders for Antisemitism TrainingRead the Press Release
CHARLESTON, W.Va. – United States Attorneys Will Thompson and William Ihlenfeld joined with leaders from the Federal Bureau of Investigation (FBI) Pittsburgh Division and the American Jewish Committee (AJC) for training yesterday in response to rising antisemitism.
Charleston and Wheeling synagogues co-hosted the joint training session, presented by AJC and part of the U.S. Department of Justice’s United Against Hate (UAH) Community Outreach Program.
Thompson, Ihlenfeld and other speakers noted that planning for this training had begun well before the Hamas terror attacks and resulting conflict.
“This event was essential well before October 7, and is certainly essential now,” Thompson said. “Whether it is anti-Jewish hate, or anti-Muslim hate, or any other form of hate, we must and we will stand against all of it.”
“Hate-fueled crimes were a problem prior to October 7, and have only gotten worse since that day,” Ihlenfeld said. “This event provided a great opportunity to share information about the nature of the threat and the resources that the Justice Department brings to bear.”
The training aimed to enhance the understanding of the problem, identify effective responses to hate incidents, and empower people to speak out.
“This training was filled with invaluable information for the community,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “With antisemitism and hate crimes on the rise, these are serious crimes that not only affect one person, but an entire population and community. The public plays an important role in these cases. They are our eyes and ears in the communities we serve. We are constantly working to address these threats locally while focusing on building a relationship of trust and maintaining open dialogue so the community knows they can come to us with something suspicious or threatening.”
The training featured a message of perseverance and strength from Rabbi Jeffrey Myers of the Tree of Life Congregation in Pittsburgh, Pennsylvania, the target of the deadliest antisemitic attack in American history. Myers spoke of the 2018 terrorist attack and its continuing impact as well as the overwhelming response from an already supportive community.
“What an incredible message that was and continues to be to the rest of the world, that when people care deeply about each other, so much is possible,” Myers said. “I am someone still with hope that despite the horrors I witnessed that day, that we are able to find ways to be together, that we can rebuild community.”
The training included an overview of the trial and conviction of the Tree of Life assailant. It also included the subsequent guilty plea in the Northern District of West Virginia from a self-proclaimed white supremacist who targeted jurors and witnesses, including first responders, through threatening social media posts, website comments, and emails during the trial.
AJC leaders provided examples of antisemitism and how they can invoke ancient and medieval stereotypes, dehumanizing language and other falsehoods. They also cited recent polling of U.S. adults that found that the overwhelming majority, 91 percent, identified antisemitism as a problem for everyone that affects society as a whole.
“Antisemitism is not a Jewish problem. Period,” said AJC Washington Regional Director Alan Ronkin. “It is a societal problem. And when people recognize that, we can be a lot more effective in standing up to anti-Jewish hate.”
U.S. Attorneys Thompson and Ihlenfeld Join with FBI and American Jewish Committee Leaders for Antisemitism TrainingRead the Press Release
CHARLESTON, W.Va. – United States Attorneys Will Thompson and William Ihlenfeld joined with leaders from the Federal Bureau of Investigation (FBI) Pittsburgh Division and the American Jewish Committee (AJC) yesterday for training in response to rising antisemitism.
Charleston and Wheeling synagogues co-hosted the joint training session, presented by AJC and part of the U.S. Department of Justice’s United Against Hate (UAH) Community Outreach Program.
Thompson, Ihlenfeld and other speakers noted that planning for this training had begun well before the Hamas terror attacks and resulting conflict.
“This event was essential well before October 7, and is certainly essential now,” Thompson said. “Whether it is anti-Jewish hate, or anti-Muslim hate, or any other form of hate, we must and we will stand against all of it.”
“Hate-fueled crimes were a problem prior to October 7, and have only gotten worse since that day,” Ihlenfeld said. “This training provided a great opportunity to share information about the nature of the threat and the resources that the Justice Department brings to bear.”
The training aimed to enhance the understanding of the problem, identify effective responses to hate incidents, and empower people to speak out.
“This training was filled with invaluable information for the community,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “With antisemitism and hate crimes on the rise, these are serious crimes that not only affect one person, but an entire population and community. The public plays an important role in these cases. They are our eyes and ears in the communities we serve. We are constantly working to address these threats locally while focusing on building a relationship of trust and maintaining open dialogue so the community knows they can come to us with something suspicious or threatening.”
The training featured a message of perseverance and strength from Rabbi Jeffrey Myers of the Tree of Life Congregation in Pittsburgh, Pennsylvania, the target of the deadliest antisemitic attack in American history. Myers spoke of the 2018 terrorist attack and its continuing impact as well as the overwhelming response from an already supportive community.
“What an incredible message that was, and continues to be to the rest of the world, that when people care deeply about each other, so much is possible,” Myers said. “I am someone still with hope that despite the horrors I witnessed that day, that we are able to find ways to be together, that we can rebuild community.”
The training included an overview of the trial and conviction of the Tree of Life assailant. It also included the subsequent guilty plea in the Northern District of West Virginia from a self-proclaimed white supremacist who targeted jurors and witnesses, including first responders, through threatening social media posts, website comments, and emails during the trial.
AJC leaders provided examples of antisemitism and how they can invoke ancient and medieval stereotypes, dehumanizing language and other falsehoods. They also cited recent polling of U.S. adults that found that the overwhelming majority, 91 percent, identified antisemitism as a problem for everyone that affects society as a whole.
“Antisemitism is not a Jewish problem. Period,” said AJC Washington Regional Director Alan Ronkin. “It is a societal problem. And when people recognize that, we can be a lot more effective in standing up to anti-Jewish hate.”
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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U.S. Attorney's Office Announces Participation in Justice Department's Nationwide Election Day ProgramRead the Press Release
KNOXVILLE, Tenn. – The United States Attorney’s Office announced today that Assistant United States Attorney (AUSA) Mac Heavener will lead the efforts of the Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 7, 2023, general election. AUSA Heavener has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Tennessee, and in that capacity is responsible for overseeing the Office’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA Heavener will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: (423) 823-5009 or (423) 218-6652.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (865) 544-0751.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
“Ensuring free and fair elections depends in large part on the assistance of the American electorate,” stated United States Attorney Francis M. Hamilton III. “It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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U.S. Attorney Josh Hurwit to Co-Sponsor “United Against Hate” Summit in SandpointRead the Press Release
COEUR D’ALENE – U.S. Attorney Josh Hurwit along with the Bonner County Human Rights Task Force, the Boundary County Human Rights Task Force, the Kootenai Tribe of Idaho, DOJ Community Relations Service, and the FBI, are convening a United Against Hate summit on November 14 at The Heartwood Center in Sandpoint. The event is free and is open to the public.
United Against Hate is an initiative launched by the Department of Justice focused on improving efforts to combat hate crimes and hate incidents through relationship building at the local level. Through this endeavor, the U.S. Attorney’s Office seeks to create and strengthen trust and partnerships among law enforcement, community leaders, and residents. Well‑attended summits have already been held in Coeur d’Alene, Caldwell, Boise, Ketchum, and Pocatello.
“In my view, this initiative is particularly timely for Idaho, as we have experienced a series of troubling hate incidents throughout the state in the past several years,” said U.S. Attorney Hurwit. “As Attorney General Garland has said, this is a moment for an all-hands-on-deck approach to combatting unlawful hate.”
The November 14 event will include remarks from local leaders, presentations from prosecutors about hate crimes laws and reporting mechanisms, and speakers who will share their courageous experiences responding to hate.
“I look forward to meeting community members and hearing different perspectives on how we can work together to unite our community in standing up to unlawful hate,” said U.S. Attorney Hurwit. “And I am deeply honored to partner with our co-sponsors to prioritize this critical mission.”
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Two Yorkshire men charged with narcotics conspiracyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Cody R. Bemish, 30, and Zakary A. Bemish, 22, both of Yorkshire, NY, were arrested and charged by criminal complaint with narcotics conspiracy and distribution of fentanyl and methamphetamine. The charges carry a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that according to the complaint, in February 2023, the Drug Enforcement Administration and New York State Police began investigating the drug trafficking activities of Cody and Zakarya Bemish in the Town of Yorkshire. Between March 8 and March 30, 2023, investigators conducted five controlled purchases of fentanyl and methamphetamine from either Cody or Zakary Bemish.
Cody and Zakary Bemish made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and are detained.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in Charge Frank A. Tarentino III, New York Field Division, and the New York State Police, under the direction of Major Eugene Staniszewski.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Toledo Man Found Guilty of Receipt and Distribution of Child PornographyRead the Press Release
TOLEDO – Christopher Frater, 46, of Toledo, Ohio, was found guilty of one count of receipt and distribution of visual depictions of minors engaged in sexually explicit conduct after a four-day trial by jury before U.S. District Court Judge Jeffrey Helmick.
According to court documents and testimony, in 2017, an undercover investigator downloaded files of child pornography from an IP address assigned to the defendant at his then residence in Lima, Ohio. In January 2018, the FBI executed a search warrant at the defendant’s residence and seized his computer and cell phone. A forensic review of the electronics revealed that the defendant was utilizing peer-to-peer (P2P) file sharing programs to receive and distribute child pornography to include 150 images of children under the age of 12 and at least three videos.
Frater, a former Allen County, Ohio Corrections Officer, will be sentenced on March 12, 2024 when he faces a mandatory minimum sentence of five years in prison, although his sentence will be determined by many factors and may be higher than the mandatory minimum. The judge will determine the appropriate sentence after considering the sentencing guidelines and other factors.
This case was investigated by the FBI, Toledo and prosecuted by Assistant U.S. Attorneys Sara Al-Sorghali and Tracey Tangeman.
Three Defendants Extradited from Germany, Morocco and Romania to Face Charges Related to Russian Cyberfraud SchemeRead the Press Release
Later Today, Nikolaj Sofinskij will be arraigned before United States Magistrate Judge Ramon E. Reyes, Jr., at a federal courthouse in Brooklyn on an indictment charging him and others with three counts each of conspiracy to commit wire and mail fraud and money laundering conspiracy and one count of aggravated identity theft, in connection with schemes to steal personally identifiable information (PII) on the black market and to buy merchandise in the United States for resale abroad based on the PII. Sofinskij was extradited to the United States yesterday after being arrested in Romania. For similar charges, defendants Ruslan Albertovich Nurullin was extradited to the United States from Morocco and arraigned at a federal courthouse in Brooklyn on September 15, and Aleksandr Popan was extradited to the United States from Germany and arraigned at a federal courthouse in Brooklyn on October 16.
Breon Peace, United States Attorney for the Eastern District of New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the extraditions and charges.
“The defendants are charged with conspiring to defraud victims out of more than $48 million by stealing sensitive personal information, including social security numbers, and using it to buy and then resell electronics and luxury goods,” stated United States Attorney Peace. “This case shows that if criminals organize to target U.S. victims in their international crimes, our Office will unite with the international community to catch and bring them to justice.”
Mr. Peace thanked the Department of Justice’s Office of International Affairs, the Computer Crime and Intellectual Property Section, INTERPOL, the United States Marshals Service and the authorities of Morocco, Germany, and Romania for their assistance in securing the arrests and extraditions of Nurullin, Popan, and Sofinskij, respectively.
“Nurullin, Popan and Sofinskij allegedly engaged in multiple reshipping schemes, utilizing online communications to execute their scams, leading to $48 million in losses for their victims. The announcement today highlights the FBI’s commitment along with our international law enforcement partners to bringing criminals to the United States to be held accountable for their crimes,” stated FBI Assistant Director-in-Charge Smith.
As alleged in the indictment, from approximately 2013 to 2018, individuals located primarily in Russia and countries of the Commonwealth of Independent States (CIS) and Eastern Europe operated reshipping schemes to defraud merchants, banks and individuals in the United States. Nurullin, Popan and Sofinskij resided in Russia during the schemes, and they were arrested in their respective countries pursuant to INTERPOL Red Notices based on arrest warrants issued from the Eastern District of New York.
Scheme participants communicated online on websites called “Admin Panels.” Popan set up one of those Admin Panels, called USS-Design. Participants called “Stuffers” used stolen PII from victims—including their social security numbers and credit and debit card numbers—to buy merchandise such as smartphones, computers, luxury clothing and handbags from online retailers. These Stuffers deceived the retailers by having them ship merchandise to addresses in the United States, where the items would later be reshipped to Russia and to CIS and Eastern European countries for resale. Nurullin and Sofinskij served as Stuffers associated with the Admin Panels called Strongbox.cc, Arenaproject.it, and Astra Star Ave.
Participants divided profits frequently through a virtual currency exchange based in Russia, and they reinvested proceeds into the ongoing schemes, including by buying prepaid mailing labels to facilitate shipments to Russia and elsewhere. The reshipping schemes caused more than $48 million in losses to victims.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. The defendants face a maximum of 20 years’ imprisonment for each of the fraud, fraud conspiracy and money laundering counts. If convicted of the aggravated identity theft counts, the defendants face a mandatory additional sentence of 2 years’ imprisonment.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes, including mail and wire fraud and identity theft—such as the crimes that Nurullin, Popan and Sofinskij committed.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nicholas J. Moscow and Victor Zapana are in charge of the prosecution with assistance from Paralegal Specialist Emme Moosher, along with Trial Attorney Christopher D. Usher of the Department of Justice’s Violent Crime and Racketeering Section.
The Defendants:
RUSLAN ALBERTOVICH NURULLIN (also known as “ray.nolan” and “nolan”)
Age: 32
MoroccoALEKSANDR POPAN (also known as “exemption,” “popanus,” “Alexander Popan,” “Alexandr Popan” and “Alexander Popandopulo”)
Age: 40
GermanyNIKOLAJ SOFINSKIJ (also known as “pagnini,” “Nikola Sofinskiy” and “Mykola Petrovych Sofinskyi”)
Age: 42
RomaniaE.D.N.Y. Docket No. 19-CR-456 (PKC)
2023.10.16_redactions_for_nurullin_popan_and_sonfinskij_redacted.pdfThree Columbia Residents Indicted for Bank Fraud, Mail TheftRead the Press Release
JEFFERSON CITY, Mo. – Three Columbia, Mo., residents have been indicted by a federal grand jury for their roles in a bank fraud conspiracy that used identity documents stolen from the mail to open fraudulent bank accounts.
Chandelle Eugene Marteen, 39, Jason Lee Patillo, 49, and Candace Anne Cook, 41, were charged in a 22-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Tuesday, Oct. 24. The indictment was unsealed and made public following the arrests of all three defendants.
The federal indictment alleges that Marteen, Patillo and Cook participated in a bank fraud conspiracy from July 2021 to March 2023. Marteen and Cook allegedly stole mail from collection boxes and residences, from which they obtained personal and business checks. They forged signatures and altered the checks.
Marteen obtained personal identification documents belonging to others, the indictment says, and used them to cash or deposit stolen and fraudulent checks. He opened bank accounts using stolen identity documents, deposited stolen and fraudulent checks into the accounts, and withdrew money from the accounts. Patillo allegedly opened a bank account at Marteen’s instruction and gave him the debit card and account information, which enabled him to deposit stolen, fraudulent checks and withdraw money from the account using cash withdrawals at ATMs and electronic transfers.
In addition to the conspiracy, Marteen is charged with nine counts of bank fraud, two counts of mail theft, two counts of possessing stolen mail, and seven counts of aggravated identity theft.
Cook is also charged with one count of possessing stolen mail.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Columbia, Mo., Police Department, the Boone County, Mo., Sheriff’s Department and the U.S. Postal Inspection Service.
Tewksbury Woman Sentenced to More Than Five Years in Prison for Embezzlement, Unemployment Fraud and Tax CrimesRead the Press Release
BOSTON – A Tewksbury woman was sentenced yesterday in federal court in Boston for embezzling more than $1.8 million from her employer, collecting unemployment assistance while employed fulltime and related tax charges.
Joanne Dinoto a/k/a Joanne Mara, 49, was sentenced by U.S. Senior District Court Judge Denise J. Casper to 62 months in prison and three years of supervised release. Dinoto was also ordered to pay restitution of $2,195,592. In March 2023, Dinoto pleaded guilty to one count of bank fraud, three counts of wire fraud, one count of aggravated identity theft and one count of filing a false tax return.
Beginning no later than October 2008 and continuing through April 2020, Dinoto stole more than $1.8 million from her employer, a flooring company based in Acton, by falsely inflating her compensation, using her employer’s corporate credit card for personal expenses, and forging at least two checks to herself drawn on her employer’s checking account. To hide her scheme, Dinoto modified her employer’s accounting records. Dinoto later collected unemployment benefits from the Massachusetts Department of Unemployment Assistance under her true Social Security number, even though she was then working full time for a different employer, a lighting company based in Wilmington, under a fake Social Security number. Between 2015 and 2020, Dinoto did not report more than $1 million that she embezzled from the Acton company or received from the Wilmington company on her federal income tax returns.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement today. The Acton Police Department and the Middlesex District Attorney’s Office also provided valuable assistance. Assistant U.S. Attorney Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit prosecuted the case.