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Wednesday 1 November 2023
Domincan Replublic Man Sentenced to 168 Months on Cocaine Conspiracy ConvictionRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Yefri Martinez-Herrera, 31, of the Dominican Republic, was sentenced to 168 months imprisonment by Chief District Judge Robert A. Molloy after pleading guilty on March 6, 2023, to conspiracy to possess and possession with intent to distribute cocaine.
According to court documents, Martinez-Herrera and co-defendant Kelly Bruney, agreed to sell 200 kilograms of cocaine to an undercover agent at a cost of $11,500.00 per kilogram. The investigation concluded on February 3, 2022, when federal agents executed a search warrant at Martinez-Herrera’s home in French Town. From the search, agents recovered 87 kilograms of cocaine and a firearm in Martinez-Herrera’s bedroom. Agents also discovered Martinez-Herrera hiding in a closet.
This case was investigated by Drug Enforcement Administration, Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Kyle Payne.
DEA Investigations Result in Three Southern Oregon Drug Traffickers Pleading Guilty in Federal CourtRead the Press Release
MEDFORD, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that three southern Oregon drug traffickers, including the head of a Klamath Falls, Oregon, drug trafficking organization, have pleaded guilty in federal court following investigations by the U.S. Drug Enforcement Administration’s (DEA) Medford resident office.
Juan Jessie Martinez-Gil, 59, a former resident of Reno, Nevada, pleaded guilty today to conspiring to distribute and possess with intent to distribute methamphetamine and fentanyl. Candice Nadine Mckee, 31, a distributor in Martinez-Gil’s network and resident of Lakeview, Oregon, pleaded guilty Monday to possessing with intent to distribute fentanyl.
Also on Monday, in a separate criminal case, Jessie Cole Merkel, 31, of Redding, California, pleaded guilty to one count of distributing fentanyl.
U.S. v. Martinez-Gil et al.
According to court documents, between August 2019 and September 2021, Martinez-Gil, the head of a Klamath Falls area drug trafficking organization, conspired with various associates, including McKee, to possess and distribute large quantities of methamphetamine and fentanyl, in the form of counterfeit Oxycodone pills, in and around Klamath Falls. A coordinated law enforcement operation conducted in September 2021 led to the arrests Martinez-Gil and several of his co-conspirators. Federal search warrants were executed on five locations and two vehicles. Over the course of the investigation, DEA special agents, working with other southern Oregon law enforcement agencies, seized approximately 17 pounds of methamphetamine and 700 counterfeit Oxycodone pills.
Martinez-Gil will be sentenced on February 22, 2024, by U.S. District Court Judge Michael J. McShane. He faces a maximum sentence of life in prison with a 10-year mandatory minimum sentence. Mckee will be sentenced the same day and faces a maximum sentence of 25 years in prison.
U.S. v. Merkel
According to court documents, between February and April 2022, Merkel, a known northern California drug dealer responsible for trafficking quantities of fentanyl from California to Oregon, sold fentanyl to undercover law enforcement officers on two separate occasions. On April 14, 2022, Merkel was arrested while traveling from California to Oregon.
Merkel will be sentenced on February 22, 2024, by Judge McShane. He faces a maximum sentence of 20 years in prison, a $1 million fine, and three years’ supervised release.
Martinez-Gil et al. was investigated by the DEA Medford Resident Office with assistance from the Basin Interagency Narcotics Enforcement Team (BINET), a Klamath Falls area narcotics task force comprised of Oregon State Police, the Klamath Falls Police Department, and Oregon National Guard.
Merkel was investigated by the DEA Medford Resident Office with assistance from Homeland Security Investigations (HSI), Oregon State Police, and the Central Point Police Department.
Both cases were prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Cuatro acusados extraditados de Guatemala condenados por participar en una asociación delictuosa internacional de tráfico de personas con resultado mortalRead the Press Release
El Departamento de Justicia, junto con el Departamento de Seguridad Nacional y sus socios, anunciaron hoy importantes sentencias obtenidas a través del procesamiento por parte de la Fuerza de Tarea Conjunta Alfa (JTFA) de líderes, organizadores y miembros de un prolífico ardid de tráfico de personas que resultó en la muerte de un migrante guatemalteco en 2021.
Cuatro acusados han sido condenados hoy en el Distrito Oeste de Texas por su participación en el ardid de tráfico de personas. López Mateo Mateo, alias Bud Light, de 43 años, fue condenado a 30 años de prisión; Felipe Diego Alonzo, alias Siete, de 40 años, fue condenado a 19 años y siete meses de prisión; y Nesly Norberto Martínez Gómez, alias Canche, de 38 años, y Juan Gutiérrez Castro, alias Andrés, de 46 años, fueron condenados a 10 años y un mes de prisión.
“Los cuatro acusados sentenciados en este caso formaban parte de una mortífera operación de tráfico de personas que ponía en peligro a migrantes vulnerables con fines lucrativos y que le costó la vida a una mujer”, dijo el fiscal general Merrick B. Garland. “Cuando dirigí la formación de la Fuerza de Tarea Conjunta Alfa en 2021, dije que el Departamento de Justicia combatiría las amenazas planteadas por las peligrosas redes de tráfico de personas allí donde se originaran y operaran. Desde entonces, el Departamento de Justicia ha realizado más de 260 aprehensiones nacionales e internacionales y ha logrado 150 condenas por cargos de tráfico de personas. El Departamento de Justicia seguirá desarticulando y desmantelando la amenaza que representan las operaciones de tráfico y trata de personas”.
“Los traficantes de personas harán cualquier cosa para obtener beneficios y el Departamento de Seguridad Nacional hará todo lo que esté en su poder para detenerlos”, declaró el secretario de Seguridad Nacional, Alejandro N. Mayorkas. “La condena de estas cuatro personas es el resultado directo de un esfuerzo sin precedentes de todo el Gobierno para prevenir estos delitos y buscar justicia para las víctimas. En estrecha colaboración con el Departamento de Justicia y otros organismos a través de la JTFA, nuestros agentes de Investigaciones de Seguridad Nacional (HSI) seguirán investigando y desmantelando las organizaciones delictivas transnacionales que se aprovechan de personas vulnerables”.
“Tragedias como esta nos recuerdan crudamente los peligros que los traficantes de personas representan para los migrantes”, declaró la fiscal general auxiliar en funciones Nicole M. Argentieri, de la División Penal del Departamento de Justicia. “La Fuerza de Tarea Conjunta Alfa, junto con nuestros socios internacionales encargados de la aplicación de la ley, seguirá persiguiendo y desarticulando peligrosas operaciones transnacionales que socavan nuestro sistema de inmigración legal y explotan a los migrantes con fines lucrativos”.
Según documentos del tribunal, los acusados admitieron haberse unido en una asociación delictuosa con otros traficantes para facilitar el traslado de un gran número de migrantes desde Guatemala a través de México y, en última instancia, a los Estados Unidos. Ellos les cobraron a los migrantes y a sus familias entre $10,000 y $12,000 dólares estadounidenses por el peligroso viaje. Uno de los viajes resultó en la muerte de una joven indígena guatemalteca, quien falleció en Texas en abril de 2021. La familia de la mujer pagó a los acusados unos $10,000 dólares estadounidenses para que la introdujeran ilegalmente en los Estados Unidos. Los acusados se encargaron de guiarla durante varios días a pie por el desierto desde México hasta Texas y luego la condujeron a una casa clandestina en Odessa, Texas, donde finalmente murió. Los acusados y sus coconspiradores arrojaron su cuerpo a un lado de una carretera rural en las afueras de Odessa, Texas. Los acusados y sus coconspiradores también coordinaron para sobornar a la familia de la víctima en Guatemala.
“Estas sentencias reflejan hasta qué punto esta oficina y el Departamento de Justicia en general harán justicia a las víctimas de crímenes atroces y evitarán más daños”, dijo el fiscal de los EE. UU. Jaime Esparza para el Distrito Oeste de Texas. “Las redes de tráfico como estas operan, no con preocupación por las vidas de sus víctimas, sino más bien su codicia y el deseo de dinero contante y sonante. En coordinación con nuestros socios, tanto en los Estados Unidos como en todo el mundo, seguiremos haciendo todo lo que esté en nuestras manos para desmantelar estas redes y hacer que los traficantes rindan cuentas”.
“HSI continuará aplicando su amplia autoridad investigadora y su presencia internacional para garantizar que los miembros de estas redes delictivas transnacionales rindan cuentas por aprovecharse y abusar de una población vulnerable”, declaró el agente especial a cargo Francisco B. Burrola, de HSI El Paso. “Nuestro mensaje es claro: si diriges una de estas organizaciones ilícitas que trasladan cargamentos de personas, te encontraremos, no importa lo cerca o lejos que estés”.
Cada uno de los acusados se declaró culpable de un cargo de asociación delictuosa para introducir a un extranjero en los Estados Unidos con resultado mortal. Como se anunció el año pasado, la amplia coordinación entre las autoridades del orden público estadounidenses y guatemaltecas condujo a la acusación formal y aprehensión de estos cuatro acusados, así como a la aprehensión de 15 coconspiradores más en Guatemala. En virtud de una solicitud de extradición, las autoridades guatemaltecas extraditaron en marzo a Mateo Mateo, Diego Alonzo, Martínez Gómez y Gutiérrez Castro a los Estados Unidos, la primera extradición de guatemaltecos por tráfico de personas a los Estados Unidos en casi cinco años y la primera extradición de Guatemala a los Estados Unidos por cargos de tráfico de personas con resultado mortal.
HSI Midland dirigió la investigación, trabajando en colaboración con HSI Guatemala y la Unidad de Tráfico de Personas de HSI en Washington, D.C. HSI recibió una asistencia sustancial de Operaciones de Aplicación de la Ley y Expulsiones del Servicio de Inmigración y Control de Aduanas de EE.UU. (ICE); Unidad de Programas de Libertad Supervisada y Aplicación de la Ley de ICE; Centro Nacional de Objetivos/Operación Centinela del Servicio de Aduanas y Protección de Fronteras de los EE. UU.; la Patrulla Fronteriza de EE. UU.; el Servicio de Alguaciles de EE. UU.; los Departamentos de Policía de Odessa y Midland; el Departamento de Seguridad Pública de Texas; y las oficinas de los alguaciles de los condados de Ector, Midland y Crane.
La Oficina de Asuntos Internacionales (OIA) del Departamento de Justicia proporcionó una importante asistencia para garantizar la aprehensión y extradición de los cuatro acusados. La Oficina de Desarrollo, Asistencia y Capacitación de Fiscales (OPDAT) de la División Penal proporcionó tutoría basada en casos para apoyar la investigación. El Departamento de Justicia agradece a las autoridades del orden público de Guatemala, quienes fueron fundamentales para proseguir con la investigación.
El codirector de la JTFA, James Hepburn, de la Sección de Derechos Humanos y Procesamientos Especiales (HRSP) de la División Penal, y los fiscales auxiliares de los EE. UU. José Luis Acosta y John Fedock, del Distrito Oeste de Texas, procesaron el caso, con la importante asistencia del fiscal auxiliar de los EE. UU. Adrián Gallegos, del Distrito Oeste de Texas, y de la historiadora y especialista en América Latina de la HRSP Joanna Crandall.
Este procesamiento y la colaboración con las autoridades del orden público de Guatemala se coordinaron bajo la Fuerza de Tarea Conjunta Alfa (JTFA). El fiscal general Garland creó la JTFA en junio de 2021 en colaboración con el DHS para reforzar los esfuerzos del Departamento de Justicia en la lucha contra el aumento del prolífico y peligroso tráfico procedente de Centroamérica y que afecta a nuestras comunidades fronterizas. La JTFA está compuesta por agentes de las Fiscalías de los EE. UU. a lo largo de la frontera suroeste, incluidos el Distrito Sur de Texas, el Distrito Oeste de Texas, el Distrito de Nuevo México, el Distrito de Arizona y el Distrito Sur de California. También proporcionan apoyo específico numerosos componentes de la División Penal que forman parte de la JTFA, dirigidos por la HRSP, y apoyados por ODPAT, la Sección de Narcóticos y Drogas Peligrosas, la Sección de Lavado de Dinero y Recuperación de Activos, la Oficina de Operaciones de Aplicación de la Ley, la OIA y la Sección de Delitos Violentos y Delincuencia Organizada. La JTFA también cuenta con una importante colaboración para la aplicación de la ley por parte del DHS, el FBI, la Administración para el Control de Drogas (DEA) y otros socios. Hasta la fecha, el trabajo de la JTFA ha dado como resultado más de 260 aprehensiones nacionales e internacionales de dirigentes, organizadores y facilitadores importantes del tráfico de personas; más de 150 condenas; importantes penas de cárcel impuestas; y decomisos de bienes sustanciales.
Colombian Citizen Arrested for Transportation of Mexican Citizens Who Entered the United States UnlawfullyRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont announced that David Henao-Palacio, 28, a citizen of Colombia most recently residing in Newark, New Jersey, was charged by criminal complaint with unlawfully transporting Mexican citizens who had entered the United States unlawfully. Henao-Palacio made his initial appearance before United States Magistrate Judge Kevin J. Doyle yesterday, and was ordered detained pending a detention hearing on Friday, November 3, 2023.
According to court records, United States Border Patrol agents observed a vehicle being driven by Henao-Palacio on the All-American Highway, a rural road that is adjacent to the international border with Canada and known for human smuggling activity. A traffic stop of Henao-Palacio revealed that three Mexican citizens were in the back seat of his vehicle, all of whom admitted to having crossed the border moments before the traffic stop. After the three Mexican citizens were removed from the vehicle, they attempted to flee into the woods, but were apprehended shortly thereafter. According to immigration records, Henao-Palacio is a Colombian citizen who illegally entered the United States near Hidalgo, Texas on August 31, 2022. Henao-Palacio was paroled into the country on September 4, 2022, pending immigration proceedings.
The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only, and that Henao-Palacio remains presumed innocent unless and until he is convicted of a crime. As presently charged, Henao-Palacio faces a maximum sentence of 5 years of imprisonment; however the actual sentence following any conviction would be determined with reference to the Federal Sentencing Guidelines.
U.S. Attorney Nikolas P. Kerest commended the efforts of the United States Border Patrol.
The case is being prosecuted by AUSA Jonathan Ophardt. Henao-Palacio is being represented by Assistant Federal Defender Barclay Johnson.
Note: Press Release was edited to correct the spelling of the nationality of the defendant.
Clarksville Home Business Owner Sent to Prison for Filing False Tax ReturnsRead the Press Release
NASHVILLE – David Haley, 65, of Clarksville, Tennessee was sentenced yesterday to two years in federal prison for filing false tax returns that omitted income he earned from his business, announced U.S. Attorney Henry C. Leventis for the Middle District of Tennessee and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. Haley was also ordered to pay a fine of $5,000 and restitution in the amount of $186,290. Upon release from prison, he will be subject to one year of supervised release.
In November 2022, Haley was convicted of three counts of filing false tax returns for tax years 2015, 2016, and 2017. The jury acquitted Haley of one count of filing a false tax return relating to his 2014 tax filing. According to court documents and evidence presented at trial, Haley owned Haley & Associates Mechanical Contractors, a heating and plumbing business. From 2014 through 2017, Haley & Associates was hired as the subcontractor on commercial projects in middle Tennessee and was paid more than $1,000,000 for each year. Generally, the contractors that hired Haley & Associates paid via check and reported the payments to the IRS via Forms 1099-MISC as non-employee compensation. Even though Haley personally received a portion of the company’s earnings as business income and nonemployee compensation, Haley reported earning no income on his 2014-2017 tax returns. Haley’s failure to report that income on his tax returns for tax years 2015 through 2017 caused the IRS a loss of approximately $186,290.
IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorneys Kathryn W. Booth and Mitchell T. Galloway are prosecuting the case.
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Chelsea Woman Sentenced for False Claims and Stealing Benefits from Three Minor ChildrenRead the Press Release
TULSA, Okla. – A Chelsea woman was sentenced today to 6 months in prison for one count of conversion of benefits by representative payee and one count of making a false statement, announced U.S. Attorney Clint Johnson.
U.S. District Judge John F. Heil, III, sentenced Arvella Evyon Downing, 55, to 6 months followed by 3 years of supervised release. Judge Heil further ordered Downing to pay $28,368 in restitution.
“Downing not only abused her position as a guardian, but she also stole
thousands of dollars in social security benefits from children,” said U.S. Attorney Clint J. Johnson.According to court documents, Downing pled guilty on Mar. 3, 2023. She admitted from on or about Oct. 1, 2019, through on or about Sept. 30, 2020, that she made application to receive social security benefits on behalf of 3 minor children. She received approximately $28,368 and claimed that she spent it on housing, clothing, education, medical and dental expenses, recreation, or personal items.
In a related indictment, Downing’s boyfriend, Keith Alan Schulze pled guilty on Mar. 3, 2023, to child neglect in Indian Country and will be sentenced at a later date.
Arvella Evyon Downing was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Social Security Administration-Office of the Inspector General investigated the case. Assistant U.S. Attorneys Aaron M. Jolly and Steven Briden prosecuted the case.
Car battery conspiracy: three men convicted of cocaine traffickingRead the Press Release
CORPUS CHRISTI, Texas – Two men have pleaded guilty to conspiring to traffic cocaine across the border, announced U.S. Attorney Alamdar S. Hamdani.
Mikeal Jovany Phillips, 35, Huffman, and Juan Andres Rodriguez-Murillo, 31, Mexico, conspired with others to smuggle narcotics into the United States by concealing the drugs inside car batteries.
On Jan. 6, Christopher Sheffield, 38, Crosby, drove a gold SUV to the Border Patrol (BP) checkpoint near Sarita. Upon inspection, authorities discovered approximately 2.8 kilograms of cocaine hidden inside the battery compartment. The battery shell contained a smaller battery to power the vehicle and three bundles of cocaine.
The investigation revealed numerous text and Facebook messages between Sheffield and Phillips discussing the trip. Subsequently, authorities learned Phillips had coordinated the trip and arranged for Sheffield to travel from the Houston area to Brownsville to retrieve the cocaine. While in Brownsville, Sheffield met Rodriguez-Murillo who then provided the cocaine-filled car battery and made the switch in the vehicle.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing for Phillips and Rodriguez-Murillo Jan. 30 and Feb. 6, 2024, respectively. At that time, each man faces up to 40 years in federal prison and a possible $5 million maximum fine.
Phillips and Rodriguez-Murillo have been and will remain in custody pending sentencing.
Sheffield previously pleaded guilty and is also pending sentencing.
The Drug Enforcement Administration and Border Patrol conducted the investigation.
Assistant U.S. Attorney Ashley Martin is prosecuting the case.
Chinese Man Pleads Guilty to Illegally Entering the United StatesRead the Press Release
St. Thomas, VI –United States Attorney Delia L. Smith announced today that Xiaoling Li, 32, of China, pleaded guilty to Illegal Entry into the United States before U.S. Magistrate Judge Ruth Miller and was sentenced to time served.
According to court documents, Xiaoling Li was arrested after being inspected by U.S. Customs and Border Protection before he attempted to board a Delta flight to New York on August 2, 2023. During his inspection, officers determined that Li traveled from China to Suriname, and on July 26, 2023, Li paid $7,500.00 to his traffickers to illegally transport him by boat to St. Thomas. Li’s inspection also confirmed that no record exists that authorized his legal entry into the United States, and no evidence exists that Li applied for, sought, or received prior permission to enter or reside in the United States.
This case was investigated by United States Customs and Border Protection and prosecuted by Assistant United States Attorney Melissa P. Ortiz.
Bucks County Man Pleads Guilty to “Ponzi” Schemes, Money Laundering, and Stealing over $6 Million in Federal Pandemic Relief FundsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Stanislav Bril, 40, a/k/a “Stan Bril,” a/k/a “Slava Bril,” a resident of Jamison, Pennsylvania, entered a plea of guilty on October 30, 2023 before United States District Judge Gene E.K. Pratter to three counts of mail fraud, eleven counts of wire fraud, five counts of bank fraud, and five counts of money laundering, all arising from Bril’s operation of two different Ponzi schemes, his false applications for bank loans, his defrauding of the Small Business Administration’s Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program, and related conduct.
“The U.S. Attorney’s Office will continue leading the charge with our law enforcement partners to hold Stanislav Bril and other fraudsters accountable for their schemes,” said U.S. Attorney Romero. “These fraud schemes impact us all, from individual investors to taxpayers. We also appreciated the public’s assistance and cooperation in bringing these cases.”
“Over the course of ten years, Bril perpetrated multiple fraud schemes, stealing variously from investors, a bank, and the U.S. government,” said Richard Langham, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Fortunately, the FBI and our partners are experts at ensuring criminals like him are held accountable.”
“IRS-Criminal Investigation is proud to have provided its financial expertise in this investigation,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “We, along with our law enforcement partners and the Department of Justice, are committed to aggressively investigating individuals who engage in money laundering, tax fraud, or other types of white-collar crimes.”
From October 2011 to August 2014, Bril operated a “Ponzi” scheme through his company, Mortgage Consultant Group (“MCG”), obtaining over $1 million from investors and using much of these funds for his own benefit and to perpetuate the scheme. Bril approached investors and persuaded them to make capital loan investments in MCG. In his marketing materials and his sales pitches to investors, Bril falsely claimed that these investments would enable MCG to make loans on real estate and construction projects or enable MCG to make short-term, high interest loans. Bril falsely promised that investors would obtain regular returns, or “interest,” on their capital loan investments in MCG. Rather than use investors’ funds as promised, Bril used the vast majority of the funds to pay himself, his family, and his personal expenses – including his gambling losses at casinos – and to perpetuate his scheme by occasionally making “interest” payments to some investors.
From October 2018 to June 2021, Bril fraudulently obtained a $750,000 line of credit from a bank headquartered in Scranton, Pennsylvania for another company he created, The Bril Group, Inc. (“TBG”). In order to secure the line of credit, Bril made false statements about TBG’s business, the number of TBG employees he was hiring, and the intended use of the line of credit. Once he obtained the line of credit, Bril caused those funds to be spent on unauthorized purchases and laundered a significant portion of those funds through various bank accounts.
From April 2020 to March 2021, Bril fraudulently obtained over $6.7 million from the Small Business Administration’s Economic Injury Disaster Loan (“EIDL”) and Paycheck Protection Programs (“PPP”) by making false statements about the number of employees of, the wages and payroll taxes paid by, and the intended use of the loan proceeds by several companies that Bril created. Bril falsely claimed that these companies – TBG, MCG LOAN, and SAB Services LLC – had several hundred employees when in fact none of these companies had more than one employee. In his PPP and EIDL applications, Bril submitted allegedly historical tax forms with inflated payroll information for nonexistent employees that had never actually been filed. In addition, Bril falsely denied that there were criminal charges pending against him at the time of his applications. In fact, federal charges were already pending against Bril for his perpetration of the Ponzi scheme detailed above. Once he fraudulently obtained these funds, Bril wired them to other individuals, cryptocurrency platforms, and a title company towards a purchase of a Los Angeles condominium. Bril also laundered a significant portion of those funds through various bank accounts and transactions.
From July 2019 to at least August 2021, Bril revived MCG and used it to perpetrate yet another “Ponzi” scheme, obtaining millions of dollars in loans from several investors and using these funds for his own benefit and to perpetuate the scheme. Bril initially took short-term loans from investors and repaid investors with high interest rates to lull them into a false sense of security and to obtain larger loans from them. In his sales pitches to investors, Bril falsely claimed that their loans would enable MCG to make loans on real estate and construction projects and/or enable MCG to make short-term, high-interest loans. However, Bril provided investors with few details of these purported projects and declined to identify his purported borrowers. Bril often encouraged investors to “rollover” their loans into new deals rather than take their payouts per their agreements with Bril. When investors asked Bril whether he had any claims, lawsuits, or legal proceedings filed against him, Bril falsely answered in the negative despite his knowledge that federal charges were already pending against him for his perpetration of the earlier Ponzi scheme. When Bril began missing the agreed repayments to investors, Bril provided bogus explanations for his theft of their loans, including that he was waiting for a wire to clear, that he waiting for a check to be mailed from his bank, that he was looking for a new bank, that his new bank was giving him a “hard time,” and that he was suffering from a variety of health emergencies and personal tragedies that were somehow preventing him from making timely paying to the investors. Rather than use investors’ funds as promised, Bril used the funds to pay himself, his family, and his personal expenses – including trading in digital currencies – and to perpetuate his schemes by occasionally making “interest” payments to some investors.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant United States Attorneys Vineet Gauri and Matthew T. Newcomer.
Bucks County Man Pleads Guilty to “Ponzi” Schemes, Money Laundering, and Stealing over $6 Million in Federal Pandemic ReliefRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Stanislav Bril, 40, a/k/a “Stan Bril,” a/k/a “Slava Bril,” a resident of Jamison, Pennsylvania, entered a plea of guilty yesterday before United States District Court Judge Gene E.K. Pratter to three counts of mail fraud, 11 counts of wire fraud, five counts of bank fraud, and five counts of money laundering, all arising from Bril’s operation of two different Ponzi schemes, his false applications for bank loans, his defrauding of the Small Business Administration’s Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program, and related conduct.
From October 2011 to August 2014, Bril operated a “Ponzi” scheme through his company, Mortgage Consultant Group (“MCG”), obtaining over $1 million from investors and using much of these funds for his own benefit and to perpetuate the scheme. Bril approached investors and persuaded them to make capital loan investments in MCG. In his marketing materials and his sales pitches to investors, Bril falsely claimed that these investments would enable MCG to make loans on real estate and construction projects or enable MCG to make short-term, high interest loans. Bril falsely promised that investors would obtain regular returns, or “interest,” on their capital loan investments in MCG. Rather than use investors’ funds as promised, Bril used the vast majority of the funds to pay himself, his family, and his personal expenses – including his gambling losses at casinos – and to perpetuate his scheme by occasionally making “interest” payments to some investors.
From October 2018 to June 2021, Bril fraudulently obtained a $750,000 line of credit from a bank headquartered in Scranton, Pennsylvania for another company he created, The Bril Group, Inc. (“TBG”). In order to secure the line of credit, Bril made false statements about TBG’s business, the number of TBG employees he was hiring, and the intended use of the line of credit. Once he obtained the line of credit, Bril caused those funds to be spent on unauthorized purchases and laundered a significant portion of those funds through various bank accounts.
From April 2020 to March 2021, Bril fraudulently obtained over $6.7 million from the Small Business Administration’s Economic Injury Disaster Loan (“EIDL”) and Paycheck Protection Programs (“PPP”) by making false statements about the number of employees of, the wages and payroll taxes paid by, and the intended use of the loan proceeds by several companies that Bril created. Bril falsely claimed that these companies – TBG, MCG LOAN, and SAB Services LLC (“SAB”) – had several hundred employees when in fact none of these companies had more than one employee. In his PPP and EIDL applications, Bril submitted allegedly historical tax forms with inflated payroll information for nonexistent employees that had never actually been filed. In addition, Bril falsely denied that there were criminal charges pending against him at the time of his applications. In fact, federal charges were already pending against Bril for his perpetration of the Ponzi scheme detailed above. Once he fraudulently obtained these funds, Bril wired them to other individuals, cryptocurrency platforms, and a title company towards a purchase of a Los Angeles condominium. Bril also laundered a significant portion of those funds through various bank accounts and transactions.
From July 2019 to at least August 2021, Bril revived MCG and used it to perpetrate yet another “Ponzi” scheme, obtaining millions of dollars in loans from several investors and using these funds for his own benefit and to perpetuate the scheme. Bril initially took short-term loans from investors and repaid investors with high interest rates to lull them into a false sense of security and to obtain larger loans from them. In his sales pitches to investors, Bril falsely claimed that their loans would enable MCG to make loans on real estate and construction projects and/or enable MCG to make short-term, high interest loans. However, Bril provided investors with few details of these purported projects and declined to identify his purported borrowers. Bril often encouraged investors to “rollover” their loans into new deals rather than take their payouts per their agreements with Bril. When investors asked Bril whether he had any claims, lawsuits, or legal proceedings filed against him, Bril falsely answered in the negative despite his knowledge that federal charges were already pending against him for his perpetration of the earlier Ponzi scheme. When Bril began missing the agreed repayments to investors, Bril provided bogus explanations for his theft of their loans, including that he was waiting for a wire to clear, that he waiting for a check to be mailed from his bank, that he was looking for a new bank, that his new bank was giving him a “hard time,” and that he was suffering from a variety of health emergencies and personal tragedies that were somehow preventing him from making timely paying to the investors. Rather than use investors’ funds as promised, Bril used the funds to pay himself, his family, and his personal expenses – including trading in digital currencies – and to perpetuate his schemes by occasionally making “interest” payments to some investors.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant United States Attorneys Vineet Gauri and Matthew T. Newcomer.
Brooklyn Resident and Two Russian Nationals Charged with Exporting Dual-Use Electronics Used in Russian Military's DronesRead the Press Release
A four-count indictment was unsealed yesterday in Brooklyn charging Nikita Arkhipov, Nikolay Grigorev and Artem Oloviannikov with conspiracy and other charges related to an export control scheme to benefit companies affiliated with the Russian military. Grigorev, a Brooklyn resident, was arrested on November 1, 2023. Arkhipov and Oloviannikov remain at large.
As alleged in the indictment and other court filings, the defendants utilized a Brooklyn-based corporate entity, Quality Life Cue LLC (QLC), to facilitate the export control scheme. QLC was registered and controlled by Grigorev and Oloviannikov, with Arkhipov utilizing a QLC email account from Russia. Through QLC, the defendants procured dual-use electronic components for entities in Russia involved in the development and manufacture of drones for the Russian war effort in Ukraine.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General, National Security Division, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Jonathan Carson, Special Agent in Charge, Office of Export Enforcement, New York Field Office, Bureau of Industry and Security, US Department of Commerce announced the charges.
“As alleged, these defendants conducted a sophisticated scheme, violating American sanctions in order to fuel Russia’s war effort,” stated United States Attorney Peace. “In Brooklyn and around the world, our Office will not rest in making sure that military technologies do not fall into the wrong hands.”
“In the past two days alone, the Justice Department and its law enforcement partners have arrested and charged multiple individuals accused of perpetrating sophisticated schemes to unlawfully acquire, conceal, and ship U.S. electronic components on behalf of the Russian defense industry,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The National Security Division is committed to holding accountable individuals who would defy U.S. law in support of Russian aggression in Ukraine.”
“Sanctioned dual-use electronic components intended for the Russian military were allegedly obtained and exported by the defendants. Export control laws are put in place to defend our national security and any violation of these laws is extremely serious. FBI New York will ensure that anyone responsible for evading these laws is punished in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith.
“The Office of Export Enforcement is focused on rooting out the illicit procurement networks that supply Russia’s ongoing war in Ukraine. We will continue to collaborate with our law enforcement partners and leverage our unique authorities to prosecute these violators responsible, as alleged in the indictment, for undermining the extensive sanctions put in place to stem the flow of war materials to Russia’s military,” stated Jonathan Carson, Special Agent in Charge, Office of Export Enforcement, New York Field Office, Bureau of Industry and Security, US Department of Commerce.
SMT-iLogic
The most notable of these entities is SMT-iLogic, a Russia-based technology company. SMT-iLogic is associated with an entity known as the Special Technology Centre (STC). STC is a Russia-based entity that was added to the Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Person List (SDN List) on or about December 29, 2016, for assisting the foreign military intelligence agency of Russia’s armed forces, commonly known by the acronym “GRU,” in conducting signals intelligence operations.
According to public reporting, SMT-iLogic shares an address with STC in St. Petersburg, Russia, was founded by a top Russian scientist and major shareholder of STC, and has imported millions of dollars’ worth of electronics into Russia. On or about May 19, 2023, SMT-iLogic was also added to the SDN List. Per OFAC, SMT-iLogic “is known to be involved in the supply chain for producing Russian military UAVs used in Russia’s war against Ukraine.”
On or about January 4, 2017, STC was added by the U.S. Department of Commerce, Bureau of Industry and Security (BIS) to the Entity List for supporting the GRU. STC was involved in the production of the “Sea Eagle Orlan 10 UAV,” a drone vehicle that has been involved in Russian military operations in Ukraine. STC’s biggest customer, according to the same reporting, is Russia’s Ministry of Defense, which paid STC the equivalent of nearly $99 million between February and August of 2022.
Export Control Scheme
As alleged in the indictment and other court filings, between October 22, 2021 and February 22, 2022, QLC accounts controlled by Grigorev received wire transactions from iLogic totaling approximately $272,830.40. These funds were used almost entirely to make payments to a Brooklyn-based electronics distributor (the “Brooklyn Company”) or pay Grigorev’s credit cards, which he used to buy goods from the Brooklyn Company. Email and chat communications among the defendants explicitly reference efforts to circumvent U.S. sanctions, use “test” or “fictitious” orders to test new supply lines to Russia, and discuss front companies in third countries. In June 2023, a court-authorized search warrant of Grigorev’s residence in Brooklyn successfully interdicted over 11,500 electronic components purchased from the Brooklyn Company that were awaiting unlawful export to Russia.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell, Rebecca Schuman and Kate Mathews are in charge of the prosecution, along with Trial Attorney Natalya Savransky of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analyst Mary Clare McMahon.
Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
The Defendants:
NIKITA ARKHIPOV
AGE: 39
SAINT PETERSBURG, RUSSIANIKOLAY GRIGOREV
AGE: 36
BROOKLYN, NYARTEM OLOVIANNIKOV
AGE: 37
SAINT PETERSBURG, RUSSIAE.D.N.Y. Docket No. 23-M-429
Bay Area Doctor Convicted of Health Care Fraud and Kickback Scheme for Referrals to Medicare-Funded Home Health ServicesRead the Press Release
SAN FRANCISCO – Henry Geoffrey Watson, a medical doctor residing in Oakland, California, was convicted by a federal jury today of charges that included accepting kickbacks for patient referrals to home health agencies, health care fraud, and false statements relating to a health care matter, announced Attorney for the United States Thomas A. Colthurst, Robert K. Tripp, Federal Bureau of Investigation Special Agent in Charge, and Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG).
The jury found that Watson, 67, engaged in three health care kickback schemes from 2013 to 2019, using his position as a licensed medical doctor. The first scheme involved a conspiracy in which Watson agreed to refer patients to home health agency Amity Home Health Care in exchange for illegal kickback payments. The evidence at trial proved that Watson and employees of Amity and its CEO, Amanda Singh, conspired to pay Watson regular and recurring amounts, sometimes in the form of cash payments of $3,000 a month, to ensure that Watson referred Medicare patients to Amity each month.
Title 42, United States Code, Section 1320a-7b, the Anti-Kickback Statute, makes it a crime for any person to knowingly solicit, offer, or pay a kickback, bribe, or rebate for furnishing services under a Federal health care program including Medicare.
In the second scheme proved at trial, Watson accepted kickback payments from an undercover FBI agent posing as a home health agency representative seeking Watson’s agreement to refer his patients to a particular Bay Area home health agency. The evidence at trial included video recordings of Watson accepting envelopes of cash, for a total of more than $10,000, at four meetings in 2017. The jury heard evidence that Watson also suggested other doctors who he believed would be willing to accept illegal payments for referrals from the undercover agent.
The third scheme proved at trial involved a conspiracy between Watson and others to repeatedly and falsely certify individuals for Medicare-funded home health services that the individuals did not seek and did not need. The evidence at trial showed that Watson and co-conspirators arranged for Watson to briefly meet large numbers of unwitting elderly residents of Bay Area retirement homes. After these meetings, held in common areas or recreation rooms, Watson certified that each and every resident he met was homebound, meaning they had a normal inability to leave the home. In fact, according to the evidence and the jury’s verdict, Watson knew that the patients were not homebound and did not need the services he prescribed. Watson did not conduct any tests or conduct any inquiry about whether they were homebound, according to trial evidence, but he nevertheless made fraudulent referrals to the three home health agencies. During time periods that Watson repeatedly certified that certain individuals were homebound, testimony from these individuals and their regular primary care doctors showed that the individuals were generally healthy and active, engaging in activities such as traveling internationally, shopping, walking stairs, and jogging. The evidence proved Watson falsely billed Medicare for certifying these individuals for home health and for supervising their home health care, despite the fact that the individuals did not need that care. As part of the conspiracy, Watson was paid illegal kickbacks of $100 per patient referral by a co-conspirator working for the three home health agencies.
“Henry Watson engaged in a scheme to enrich himself and his co-conspirators by falsely certifying patients needed expensive home health care services, causing Medicare to pay millions in unnecessary and fraudulent claims,” said FBI Special Agent in Charge Robert K. Tripp. “The FBI and its law enforcement partners will continue to pursue and prosecute medical professionals who cheat our critical healthcare programs like Medicare.”
HHS-OIG Special Agent in Charge Steven J. Ryan said: “Violations of the Anti-Kickback Statute harm patients by taking away their choice and by depriving them of a doctor committed to doing what is best for them. Kickbacks also can result in medically unnecessary services billed to Medicare, which can affect the availability of services and drive up the cost of health care for everyone. Individuals and entities that participate in the federal health care system must obey the laws meant to preserve the integrity of those programs.”
Criminal charges against Watson were unsealed on September 5, 2019, when the United States Attorney’s Office announced charges by criminal complaint against 30 defendants in a wide-ranging, patients-for-kickback scheme. Those charges included criminal kickback charges against Amity Home Health Care, which was then the largest home health care provider in the San Francisco Bay Area, and Advent Care, a provider of hospice care. In relation to the investigation that led to the charges and conviction of Watson, other individuals and doctors were also convicted of illegal kickbacks:
• Amity’s CEO, Ridhima Amanda Singh pled guilty to charges of conspiracy to pay kickbacks for the referrals of Medicare beneficiaries on August 5, 2022, in Court Case No. 22-CR-267 CRB.
• Dr. Bhupinder Bhandari pled guilty to violations of the Anti-Kickback Statute on June 6, 2022, in Court Case No. 20-CR-374 JD.
• Dr. Zheng Zhang pled guilty to violations of the Anti-Kickback Statute on April 25, 2022, in Court Case No. 22-CR-090 VC.
• Dr. Gerald Myint pled guilty to violations of the Anti-Kickback Statute on November 18, 2020, in Court Case No. 20-CR-408 CRB.
• Dr. Juan Posada pled guilty to violations of the Anti-Kickback Statute on January 27, 2021, in Court Case No. 20-CR-420 RS.All those defendants have been sentenced by the judges assigned to those cases.
Watson was charged by a federal grand jury in a Superseding Indictment dated March 9, 2021, that included the following counts, with the following maximum penalties:
NO. OF COUNTS
VIOLATION
DESCRIPTION
MAXIMUM PENALTIES FOR EACH COUNT
Two
18 U.S.C. § 371
Conspiracy to Pay and Receive Health Care Kickbacks
5 years in prison
$250,000 fine
Seven
42 U.S.C. § 1320a-7b(b)(1)(A)
Anti-Kickback Statute
10 years in prison
$100,000 fine
Eight
18 U.S.C. § 1347
Health Care Fraud
10 years in prison
$250,000 fine
Eight
18 U.S.C. § 1035
False Statements Relating to Health Care Matters
5 years in prison
$250,000 fine
Watson remains released on bond pending sentencing. Watson’s sentencing hearing is scheduled for February 28, 2024, before Judge Breyer in San Francisco. Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Kristina Green and Katherine Lloyd-Lovett, and the Corporate and Securities Fraud Section of the U.S. Attorney’s Office, are prosecuting the case with the assistance of Helen Yee and Laurence Macaraeg. The prosecution is the result of an investigation by the FBI and HHS-OIG.
Bastrop Man Convicted and Sentenced to 25 Years in Federal Prison for Production of Child PornographyRead the Press Release
MONROE, La. – United States Attorney Brandon B. Brown announced that Gary Landon Harper, Jr., 33, of Bastrop, Louisiana, has been sentenced by United States District Judge Terry A. Doughty to 300 months (25 years) in prison, for production of child pornography.
This case was the result of an investigation by agents with the Federal Bureau of Investigation (“FBI”) and Ouachita Parish Sheriff’s Office into allegations that Harper was misusing the internet social media application Snapchat to contact minor females in the Monroe area. Their investigation revealed that between January 1, 2021, and October 29, 2021, Harper utilized Snapchat to communicate with numerous females between the ages of 13 and 16 who attended Monroe-area middle and high schools. Harper would pay some of these females for their Snapchat login information which he would use to impersonate them and direct other females in their contact lists to “friend” accounts that he controlled, under the guise of making money from a “sugar daddy.”
Harper would further the scheme by paying females to send him sexually explicit videos and images, and to meet up with him for sex. The specific instance related to the charge in the indictment occurred between January and September 2021 when Harper enticed a 16-year-old female victim to meet him and have sex in exchange for $150. When they met, Harper filmed the pair having sex inside his pickup truck. He did this knowing she was a minor at the time. Investigators recovered that video recording from Harper’s cell phone pursuant to a search warrant and positively identified the female victim. Through their investigation, agents learned that Harper victimized over 25 minor females in his heinous schemes. Harper pleaded guilty to the one count of production of child pornography in this case on April 5, 2023.
The case was investigated by the FBI and Ouachita Parish Sheriff’s Office and prosecuted by Assistant United States Attorney Mike Shannon.
# # #
Attorney Pleads Guilty to Defrauding Business Seeking to Buy Personal Protective EquipmentRead the Press Release
NEW ORLEANS – FRANK LABRUZZO pleaded guilty on October 31, 2023, to a bill of information for conspiring with co-defendant, Cynthia Caronna, and a United Kingdom resident, to defraud a business seeking to purchase personal protective equipment (PPE) at the height of the COVID-19 pandemic, announced U.S. Attorney Duane A. Evans.
Caronna and the UK resident formed a business to sell PPE, and selected LABRUZZO to be the business’s escrow agent. LABRUZZO, an attorney employed as an investigator with the Louisiana Attorney General’s Office, was represented to PPE buyers as a trustworthy escrow agent. Buyers were told that LABRUZZO would safeguard their purchase funds in an escrow account until the PPE was satisfactorily delivered.
According to court records, the conspirators agreed that LABRUZZO would disburse the buyers’ funds despite the buyers having neither received PPE nor consented to the disbursements. The conspirators also agreed that each of them would receive portions of the buyers’ funds without the buyers’ knowledge or consent.
U.S. District Judge Greg G. Guidry scheduled LABRUZZO’s sentencing for February 6, 2023. Conspiracy is punishable by up to five years imprisonment, followed by up to three years of supervised release, a fine of up to $250,000, and a mandatory $100 special assessment fee.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
This case was being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Chandra Menon of the Public Integrity Unit is in charge of the prosecution.
Atlanta-Based Fentanyl, Meth Supplier to Central Georgia Pleads GuiltyRead the Press Release
MACON, Ga. – An Atlanta resident supplying large quantities of controlled substances, including fentanyl, to distributors in the Milledgeville, Georgia, community pleaded guilty to his crime in federal court this week; other members of the conspiracy were also sentenced.
Lagary Williams aka “Frog,” 40, of Atlanta, pleaded guilty to one count of conspiracy to distribute controlled substances on Oct. 30. Williams faces a mandatory minimum of 10 years up to a maximum of life in prison to be followed by at least five years of supervised release and a $10,000,000 fine. His sentencing hearing is scheduled for Feb. 7, 2024.
The following co-defendants, all residents of Milledgeville, pleaded guilty to conspiracy to distribute controlled substances and were sentenced to prison on Oct. 31:
- Damon Hayes aka “D-5” was sentenced to serve 275 months in prison to be followed by 10 years of supervised release;
- Derek Ingram was sentenced to serve 190 months in prison to be followed by five years of supervised release;
- Quintavius Horton aka “Bloody Bae” was sentenced to serve 120 months in prison to be followed by five years of supervised release; and
- Travarious Davis aka “D Red” was sentenced to serve 30 months in prison to be followed by five years of supervised release.
Co-defendant, Billy Harper, of Milledgeville, was sentenced to serve 18 months in prison on Oct. 31 after he previously pleaded guilty to maintaining a drug involved premises.
Chief U.S. District Judge Marc Treadwell is presiding over the cases. The defendants are not eligible for parole.
“This Organized Crime Drug Enforcement Task Force case ultimately prevented enough fentanyl to kill hundreds of thousands of people from hitting the streets, undoubtedly saving Georgia lives,” said U.S. Attorney Peter D. Leary. “Stopping armed fentanyl trafficking and holding those associated with its distribution accountable is a top priority for our office and our law enforcement partners.”
“Fentanyl and methamphetamine have taken a terrible toll on our communities,” said Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration Atlanta Division. “This drug distributor and his associates will now face the consequences of their actions.”
“A large amount of deadly fentanyl and methamphetamine was taken off the streets of Central Georgia, and a key supplier has been stopped,” said GBI Director Chris Hosey. “Partnering with law enforcement at every level, GBI will continue to dedicate resources to investigating armed drug distribution activity in a collective effort to make the communities we serve safer.”
“Our main supply of drugs into Central Georgia is coming from Atlanta. The work of local, state and federal law enforcement linked this Baldwin County drug trafficking network to a significant supplier in Atlanta,” said Ocmulgee Drug Task Force retired Commander Wesley Nunn. “Anytime we catch a fentanyl supplier means we are saving many lives.”
According to court documents, agents with the DEA Macon Resident Office (MRO), Ocmulgee Drug Task Force (ODTF) and the GBI received credible and reliable information from multiple confidential sources regarding illegal drug activities occurring in the Milledgeville area in July 2020. Hayes was identified as a multi-kilogram distributor of methamphetamine, powder cocaine and crack cocaine with Williams as his supply source. Through surveillance, agents observed Hayes acquire bulk quantities of narcotics from Williams’ luxury high-rise apartment in downtown Atlanta.
On Sept. 10, 2021, after intercepts on the wiretap indicated that Hayes was travelling to Atlanta to meet Williams for a drug re-supply meeting, a federal search warrant issued in the Northern District of Georgia was executed at Williams’ apartment. Agents encountered Williams and another person, who both jumped off the apartment’s balcony to evade capture. Both individuals were subsequently captured.
Agents recovered 2.5 kilograms of fentanyl in the apartment, as well as one kilogram of methamphetamine, two kilograms of cocaine, approximately 50 grams of cocaine base, approximately seven pounds of marijuana, a Glock 19 9mm pistol and a Ruger model 57 handgun.
This effort is part of an Organized Crime Drug Enforcement Task Force (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 case was investigated by DEA, GBI, the Ocmulgee Drug Task Force, the Baldwin County Sherriff’s Office, the Wilkinson County Sheriff’s Office, the Jones County Sheriff’s Office, the Atlanta-Carolina’s HIDTA Office and the Gwinnett Metro Task Force.
Deputy Criminal Chief Will Keyes is prosecuting the cases for the Government. Assistant U.S. Attorney Alex Kalim previously prosecuted the case.
Arrest Made in Bakersfield Firearms Trafficking Investigation Involving over 100 Guns Found at Crime ScenesRead the Press Release
BAKERSFIELD, Calif. — Joshua Ruic Kimball, 40, of Bakersfield, was arrested today on a criminal complaint for unlawful trafficking of firearms controlled by the National Firearms Act and for unlawful trafficking of firearms in violation of state law, U.S. Attorney Phillip A. Talbert announced.
“Under the guise of operating a legal firearms shop, Kimball was selling firearms in bulk without recording transactions through the ATF or complying with state background check or waiting period requirements,” U.S. Attorney Talbert said. “Over one hundred firearms traced to his operation have been recovered at crime scenes throughout the district, California, and other states. Our office is grateful for the strong federal, state, and local partnerships that made this investigation successful.”
“There is no higher priority than protecting our communities from firearms violence,” said Special Agent in Charge Jennifer Cicolani of the ATF. “Crime gun intelligence was a key factor in being able to identity the firearms dealer in this investigation, and we will continue in our collaborative efforts with the Central Valley Crime Gun Task Force to strategically target and identify illegal firearms sales, trafficking patterns, and sources of crime guns.”
“The results of Operation Last Member are not only impressive, but they highlight the profound impact of combating illegal and indiscriminate sales of firearms to criminals,” Fresno Police Department Chief Paco Balderamma said. “The recovery of at least 102 firearms used in crimes from a single source in the western United States is a significant achievement. These guns will no longer pose a threat to our community, and the individual responsible for their distribution will be held accountable. I commend the Central Valley Crime Gun Task Force, a collaboration between the Fresno Police Department and the ATF, for successfully conducting this large-scale and complex investigation. I am also very appreciative of the work by our US Attorney’s Office for taking this case on and prosecuting it at the federal level. I look forward to future investigations by this task force which will work closely with our federal partners to eradicate illegally purchased firearms from the hands of criminals. This type of proactive enforcement will undoubtedly enhance the safety of our community, making it a better place to live.”
According to court documents, the investigation began when law enforcement began discovering firearms traced to Kimball that had been seized in connection with crimes. Over 100 such firearms have been traced to Kimball since 2021. Undercover agents then contacted Kimball at his place of business, Show Off Sports LLC, at which point Kimball sold undercover agents multiple weapons, including a short-barreled rife and several silencers. All of the weapons were sold without background checks or documentation as required by law.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorneys Robert L. Veneman-Hughes and Stephanie M. Stokman are prosecuting the case.
If convicted, Kimball faces a maximum statutory penalty of 15 years in prison, and a $250,000 fine for trafficking in firearms; 10 years in prison and a $250,000 fine for unlawfully trafficking in controlled firearms; and five years in prison and a $250,000 fine for unlawfully trafficking in firearms in violation of state law. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Alexandria Man Pleads Guilty to $1.2M COVID Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to conspiring to fraudulently obtain Paycheck Protection Program (PPP) loans, unemployment insurance, and other pandemic benefits.
According to court documents, from approximately October 2020 through September 2021, George Mensah, Jr., 32, conspired with others to prepare fraudulent PPP loans and unemployment insurance claims under the CARES Act. Mensah admitted that he and his coconspirators prepared and submitted over 47 applications for PPP loans for fake businesses. At least 21 of these applications were funded by lenders, which caused an actual loss of at least $583,172. In addition, Mensah admitted that he and his co-conspirators obtained the personally identifiable information of others, including identity theft victims, in order to make claims for pandemic unemployment benefits in Virginia and elsewhere. Mensah admitted that he and his co-conspirators obtained at least $658,952 in fraudulently obtained unemployment insurance and pandemic benefits.
Mensah is scheduled to be sentenced on February 14, 2024. He faces a maximum penalty of 30 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; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Javan Wilson, Special Agent in Charge of the U.S. Department of Treasury, Office of Inspector General; and Troy W. Springer, Special Agent in Charge, National Capital Region, U.S. Department of Labor, Office of Inspector General, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea.
The Fairfax County Police Department also provided significant assistance in the investigation.
Assistant U.S. Attorneys Kimberly Shartar and Kathleen Robeson and Special Assistant U.S. Attorney Ezra Spiro are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-168.
Albany Man Indicted in Federal Court for Sexually Abusing a ToddlerRead the Press Release
EUGENE, Ore.—An Albany, Oregon man has been indicted in federal court for sexually abusing a toddler on at least five separate occasions, announced the U.S. Attorney’s Office for the District of Oregon.
Kevin Walter Taylor, 33, has been charged with five counts of using a child to produce a visual depiction of sexually explicit conduct, four counts of distributing child pornography, and one count of possessing child pornography.
According to court documents, on the morning of September 8, 2023, special agents from Homeland Security Investigations (HSI) discovered material online depicting child sexual abuse and determined that Taylor was likely committing the abuse from his home in Albany. Within hours, HSI agents and officers from the Albany Police Department obtained and executed a federal search warrant on Taylor’s residence. The same night, HSI and Albany Police arrested Taylor and rescued the toddler victim. When taken into protective custody, the toddler victim was still wearing the same clothes as those depicted in the abuse images allegedly produced and distributed by Taylor hours earlier.
Taylor was arraigned in federal court today by a U.S. Magistrate Judge. He pleaded not guilty and was ordered detained pending a jury trial scheduled to begin on December 27, 2023.
Using a child to produce a visual depiction of sexually explicit conduct is punishable by up to 30 years in federal prison with a 15-year mandatory minimum sentence. Distributing and possessing child pornography are punishable by up to 20 years in prison with a 5-year mandatory minimum sentence.
This case was investigated by HSI in conjunction with the Albany Police Department. It is being prosecuted by William M. McLaren, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about the physical or online exploitation of children are encouraged to contact HSI at (866) 347-2423 or submit a tip online at report.cybertip.org.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, they re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tuesday 31 October 2023
Yuma Man Sentenced to 52 Months in Prison for ConspiracyRead the Press Release
PHOENIX, Ariz. – Omar Molina-Galeana, 22, of Yuma, was sentenced last week by United States District Judge David G. Campbell to 52 months in prison, followed by three years of supervised release. Molina-Galeana pleaded guilty on June 13, 2023, to Conspiracy.
Between November 3, 2021, and April 14, 2022, Molina-Galeana obtained 48 firearms using nine “straw purchasers.” Each straw purchaser made false statements and representations regarding the actual purchaser of the firearm(s) to gun stores in Arizona.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-00318-PHX-DGC
RELEASE NUMBER: 2023-168_Molina-Galeana# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.York County Man Sentenced to 45 Years’ Imprisonment for Child Exploitation Offenses Involving His Infant DaughterRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Wyatt Andrew Jones, age 28, formerly of York County, Pennsylvania, was sentenced today by the Honorable Christopher C. Conner to 45 years’ imprisonment to be followed by 15 years of supervised released based upon his previously entered guilty plea for production of images containing the sexual exploitation of a child and distribution of child pornography. Jones was also ordered to pay $36,000 in restitution to the victims of his offenses. Jones is currently incarcerated at the York County Prison on related local charges.
According to United States Attorney Gerard M. Karam, Jones produced and distributed images of him sexually abusing his infant daughter and solicited and received sexually explicit images from a 13-year-old female victim located in Australia. Jones began sexually abusing his infant daughter in January 2021 when she was just three days old and continued that abuse until April 2021 when he was arrested on related local charges now pending in the York County Court of Common Pleas. Jones produced numerous videos of the sexual abuse of his infant daughter and distributed the videos using the internet. The infant’s mother, Marisel Toro, pled guilty to producing images containing the sexual exploitation of her infant daughter and is scheduled for sentencing on January 18, 2024.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The case was investigated by the York City Police Department and the Federal Bureau of Investigation (FBI) and was prosecuted by former Assistant U.S. Attorney Paul J. Miovas and Assistant U.S. Attorney Bruce D. Brandler.
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Wyoming man sentenced to three years in prison for traveling to Bozeman with intent to engage in sex with minorRead the Press Release
MISSOULA — A Wyoming man was sentenced today to three years in prison, to be followed by 10 years of supervised release, after he admitted he traveled to Montana with the intent to engage in sex with a minor, U.S. Attorney Jesse Laslovich said.
Jeremy George Lusk, 39, of Crowley, Wyoming, pleaded guilty in June to travel with intent to engage in illicit sexual conduct.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that in January, law enforcement was working undercover and responded to an ad on a social media site that was looking for a sexual encounter. The undercover responded, asking the user, who was later identified as Lusk, if he had age limits. Lusk responded that he did not, and the undercover replied that she was 14 years old and lived in Bozeman. Lusk expressed hesitation with the undercover’s purported age before re-engaging and expressing a desire for someone her age. The communications led to Lusk sending a nude photo of himself and to sexually explicit conversations. Ultimately, the two discussed Lusk traveling to Bozeman to meet and have sex. Law enforcement arrested Lusk when he arrived in Bozeman from Wyoming believing he was going to meet the undercover. Inside his truck were lubricant jell, condoms and a sex toy.
Assistant U.S. Attorney Zeno B. Baucus prosecuted the case. The Bozeman Police Department, Montana Internet Crimes Against Children Task Force and Homeland Security Investigations conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Walkertown Man Sentenced to 46 Months for Distributing a Video Depicting Animal CrueltyRead the Press Release
GREENSBORO – TIMOTHY LEWIS BLACKMON was sentenced today to 46 months in prison after pleading guilty to distributing an obscene video depicting animal cruelty after a multi-agency investigation, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, BLACKMON, age 45, was charged with one count of possession of child pornography and one count of knowingly selling, marking, advertising, exchanging, and distributing an obscene video depicting an animal cruelty video on July 25, 2022. In March 2022, investigators received an anonymous tip alerting them of an individual in Forsyth County selling videos of himself engaging in animal cruelty on the application “Kik.” A search warrant for BLACKMON’s mobile devices revealed multiple videos of BLACKMON engaging in animal cruelty.
BLACKMON was sentenced today to a 46-month term of imprisonment followed by 3 years of supervised release by the Honorable Catherine C. Eagles, Chief United States District Judge in the United States District Court for the MDNC. In addition to prison time, BLACKMON was ordered to pay $3,000 in restitution to the victims of the charges listed in the indictment.
The case was investigated by Homeland Security Investigations, the Forsyth County Sheriff’s Office and the Forsyth County District Attorney’s Office, and the case was prosecuted by Assistant United States Attorney Nicole DuPré.
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Virginia man sentenced to more than 12 years for methamphetamine traffickingRead the Press Release
WHEELING, WEST VIRGINIA - A Virginia man has been sentenced to nearly 13 years in prison for methamphetamine trafficking.
Jason Knapp Downey, age 39, of Covington, Virginia, was sentenced to 154 months in federal prison for possession with intent to distribute 50 grams or more of methamphetamine. According to court documents and statements made in court, Downey obtained the illegal substance from Cleveland, Ohio and brought it to Weirton, West Virginia to be distributed. Officers executed a search warrant on Downey’s residence and retrieved two digital scales, a large amount of pure methamphetamine, United States currency, and ammunition.
Assistant U.S. Attorney Carly Nogay prosecuted the case on behalf of the government.
The Hancock-Brooke-Weirton Drug Task Force investigated the case.
U.S. District Judge John Preston Bailey presided.Unlicensed Wholesaler Sentenced to Prison for Distributing Foreign Unapproved New Drugs and Mail FraudRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Marina Sievert (58, Dunedin) to two years in federal prison for mail fraud and introduction into interstate commerce of a foreign unapproved new drug. As part of her sentence, the court entered an order of forfeiture in the amount of $1.5 million, the proceeds of the charged criminal conduct, and ordered Sievert to pay $20,000 in criminal fines. Sievert had pleaded guilty on June 21, 2023.
According to court documents, beginning in July 2019, and continuing through April 2022, Sievert owned and operated Beauty Forever Florida, Inc. (BFF), a Florida corporation that she used to order, purchase, import, receive, and distribute unapproved and misbranded drugs and medical devices. For instance, Sievert distributed Innotox Medytox and Meditoxin, which contained botulinum toxin type A, a highly potent toxin that could cause the disease botulism. Sievert acquired these products from a Korean pharmaceutical company that did not have the required approvals of the Food and Drug Administration (FDA) for distribution in the United States. Sievert made fraudulent representations on her BFF website to her customers, such as false and misleading claims that BFF’s products were “FDA approved,” had “cleared customs,” and had “guaranteed authenticity.” Sievert collected online orders from the BFF website and used the United States Postal Service and private and commercial interstate carriers to acquire the unapproved new drugs from foreign pharmaceutical retailers. Sievert then distributed the unapproved new drugs across the United States via the mail.
This case was investigated by the United States Food and Drug Administration—Office of Criminal Investigations and Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Greg Pizzo.
United States Recovers $2.4 Million Obtained in Business Email CompromiseRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that the United States has civilly forfeited $2,462,000 in proceeds obtained from a wire fraud scheme that involved the takeover of a business email account. The forfeited funds are being returned to the fraud victim.
According to court documents, the victim, Company 1 (“C1”), sells comprehensive lead frame products and material solutions to the semiconductor packaging industry. In April 2022, C1 received an email requesting a change of payment information from someone it believed worked at its business partner, Company 2 (“C2”), a heavy equipment manufacturer from which C1 regularly purchases lead frame equipment. The email came from what appeared to be C2’s true email address. The email explained that C2 was unable to accept payment into its regular account due to a “fiscal year update,” and instead, asked C1 to make future payments to a different account. This email was a fraudulent communication intended to mislead C1 into unwittingly transferring funds to a criminal entity, rather than C2. As a result of the fraudulent communication, C1 wired $2,462,000 million to the account identified by the fraudster.
After realizing that C2 had not sent the email requesting the change, C1 reported the fraud to its bank, which ultimately caused the $2,462,000 million to be frozen. Agents from the United States Secret Service (USSS) then tracked down the sole signatory of the account that received the funds, S.T., who informed USSS agents that he has never done business with C1 or C2 and he did not believe he was the rightful owner of the funds. S.T. claimed that in approximately January 2022, he met a group of individuals at a Bitcoin conference and agreed to contract his services to the group. S.T. provided his banking information to this group in order to receive payment for the work he was going to perform. S.T. stated that he communicated with the group primarily though the WeChat messaging application, and that when he contacted them about the funds, they denied any fraud-related activity. Because C1 and its bank acted quickly, law enforcement was able to seize and forfeit the full amount transferred by C1.
United States Attorney Handberg has requested and received permission from the Department of Justice’s Money Laundering and Asset Forfeiture Section (MLARS) to remit the forfeited funds back to the victim. MLARS administers the Department’s Asset Forfeiture Program victim compensation process to ensure forfeited funds are returned to victims. U.S. Attorney Handberg noted that “civil forfeiture is an important tool frequently used by federal law enforcement to benefit victims.” In fact, in fiscal year 2023, the Middle District of Florida obtained permission to use almost $44 million in forfeited funds to compensate crime victims. Since 2000, more than $11 billion in forfeited funds has been returned to victims through federal forfeiture. In many cases like this one, criminal forfeiture is not an option because law enforcement is not able to identify the perpetrator even after the criminal proceeds are recovered. U.S. Attorney Handberg thanks MLARS for its assistance in facilitating the distribution in this matter.
“This is another example of how fraudsters are getting more sophisticated with their schemes to steal money,” said Caroline O’Brien Buster, Special Agent in Charge with the Orlando Field Office. “With the cooperation of our partners in the business community, we were able to quickly freeze the funds and assist with returning them to the victim. The United States Secret Service will continue to investigate these and other types of financial fraud in our community and around the nation.”
Business Email Compromise (BEC) is a sophisticated fraud scheme targeting businesses that use wire transfers as a form of payment. The BEC scheme affects large global corporations, governments, and individuals, with current global daily losses estimated at approximately $8 million. Criminals compromise legitimate business email accounts through various hacking schemes, including social engineering and the use of malware. Once a business email account is compromised, a fraudulent email is sent directing the recipient of the email to unwittingly transfer funds to an illicit account. Alternatively, they create “spoofed” email domain names to trick people into thinking they know the sender. An email domain name is the part of an email address that comes after the “@” symbol. In email spoofing, one character in an email address is often changed or missing, thereby tricking the recipient. Criminals obtain and use privileged information to convince BEC email recipients that the transfer instructions are legitimate.
To avoid becoming the victim of a BEC scheme, verify email addresses are accurate when checking mail on a cellphone or other mobile device before you open any attachments or follow any instructions and never make any payment changes without verifying with the intended recipient by phone or in person. If you think you have been a victim of a BEC scheme, 1) immediately contact your bank to request a recall or reversal as well as a Hold Harmless Letter or Letter of Indemnity; and 2) file a detailed complaint with the Internet Crime Complaint Center at www.ic3.gov. The Internet Crime Complaint Center, is run by the FBI and serves as the country’s hub for reporting cybercrime. Visit www.ic3.gov for updated information regarding BEC trends as well as other cyber fraud schemes.
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorney Jennifer M. Harrington.
U.S. Attorney’s Office for the Eastern District of Louisiana Announces Funding Awards During Domestic Violence Awareness MonthRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans joins The Department of Justice, survivors, victim service providers, advocates, and communities nationwide in recognizing October as National Domestic Violence Awareness Month (DVAM). This is a time to center the experiences of survivors, honor those who lost their lives to domestic violence; express gratitude to the countless individuals in the movement to end violence; and raise awareness on the issues of domestic violence, dating violence, sexual assault, and stalking. As part of its monthlong observance of DVAM, the U.S. Attorney’s Office for the Eastern District of Louisiana (EDLA) is proud to announce that the Department’s Office on Violence Against Women (OVW) awarded $949,920 to EDLA to bolster coordinated community responses aimed at bringing an end to domestic violence, as well as sexual assault, dating violence, and stalking.
Data from the most recent National Intimate Partner and Sexual Violence Survey indicate about 41% of women and 26% of men experienced contact sexual violence, physical violence, and/or stalking by an intimate partner and reported an intimate partner violence-related impact during their lifetime. Domestic violence rates are even higher for American Indian and Alaska Native populations, Black individuals, people of color, people with disabilities, and LGBTQI+ individuals.
The announced grants will reach Tribal nations, historically marginalized communities, underserved communities, college and university campuses, rural towns, culturally specific communities, and more. The funding prioritizes increasing access to justice, improving survivor safety, holding perpetrators accountable, and offering training and technical support to professionals addressing these crimes.
Specifically, the Eastern District of Louisiana received the following funding awards for the 2023 fiscal year:
- OVW awarded $450,000.00 to Vietnamese Initiatives In Economic Training under the Grants to Enhance Culturally Specific Services for Victims of Sexual Assault, Domestic Violence, Dating Violence and Stalking Program (Culturally Specific Program) to help community-based organizations develop culturally relevant programs specific to American Indian and Alaska Native populations, Black, Asian-American, Native Hawaiian and Pacific Islander, Hispanic, and Tribal communities to support survivors. Through this new Culturally Specific Services Program project, Vietnamese Initiatives in Economic Training (VIET) will implement a project addressing increased community capacity to provide culturally specific resources and support for victims of domestic violence, dating violence, sexual assault, and stalking crimes and their families; strengthen criminal justice interventions, by providing training for law enforcement, prosecution, courts, probation, and correctional facilities on culturally specific responses to domestic violence, dating violence, sexual assault, and stalking; enhance traditional services to victims of domestic violence, dating violence, sexual assault, and stalking; work in cooperation with the community to develop education and prevention strategies highlighting culturally specific issues and resources regarding victims of domestic violence, dating violence, sexual assault, and stalking; and provide culturally specific resources and services that address the safety, economic, housing, and workplace needs of victims of domestic violence, dating violence, sexual assault, or stalking, including emergency assistance for the Asian and Vietnamese communities in Southeast Louisiana.
- OVW awarded $499,920.00 to Dillard University under the Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence, and Stalking on Campus Program (Campus Program) to support colleges and universities to develop and strengthen effective security and investigation strategies for such crimes and to develop prevention education and awareness programs. The OVW award falls under the new Strengthening Culturally Specific Campus’ Approaches to Address Domestic Violence, Dating Violence, Sexual Assault, and Stalking Initiative to support new programs at Historically Black Colleges and Universities (HBCUs), Hispanic Serving Institutions (HSIs), and Tribal Colleges and Universities (TCUs). With this new award, Dillard University, in collaboration with its campus partners, will create culturally specific strategies tailored to LGBTQ and immigrant communities and work with the designated Campus technical assistance provider to build the capacity of the institution to develop a culturally specific, coordinated community response to address domestic violence, dating violence, sexual assault, and stalking by securing relevant partnerships, conducting trainings, and developing resources tailored to the campus community; develop an action plan to outline key strategies necessary to establish a coordinated community response; and establish a coordinated community response team that will oversee and implement project activities.
U.S. Attorney Duane A. Evans commented: “I am pleased to announce that the Eastern District of Louisiana has been awarded funding from the Office on Violence Against Women.” “These awards highlight DOJ’s commitment to give our community partners the tools needed to enhance public safety through programs that specifically addresses domestic violence and sexual assault public safety initiatives.”
“Every day, a vast network of dedicated individuals helps domestic violence survivors access multiple pathways to safety, justice, and healing,” said OVW Director Rosie Hidalgo. “OVW understands that there is no one-size-fits-all approach to addressing domestic violence. These funds will enable communities to increase capacity and strengthen a coordinated community approach to prevent and address violence in more comprehensive ways tailored to their communities. Together, with our grantees, we are building a future where individuals and families can live and thrive without the threat of intimate partner violence.”
OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.]
U.S. Attorney’s Office and Justice Department’s Civil Rights Division Hold Forum on Civil Rights Protections for Religious Land UseRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Rights Division held an outreach forum yesterday on combatting religious discrimination and promoting religious liberty through enforcement of the Religious Land Use and Institutionalized Persons Act (RLUIPA).
RLUIPA is a federal law that protects persons and religious institutions from discriminatory and overly burdensome land use regulations. U.S. Attorney Philip R. Sellinger for the District of New Jersey and Deputy Assistant Attorney General Johnathan Smith of the Justice Department’s Civil Rights Division held the first of a series of public education and outreach events convened by the Civil Rights Division to ensure that communities know about their protections under RLUIPA and the work that the Justice Department is doing to enforce this important law.
U.S. Attorney Philip R. Sellinger“Our office is committed to combatting religious discrimination and ensuring that religious groups are treated fairly and equally under local land use laws. RLUIPA provides important protections for religious groups throughout New Jersey. At the same time, we will continue to use every legal authority at our disposal to bring justice to those who commit illegal acts of hate, and we will confront anti-Semitism, Islamophobia and any form of religious hatred wherever it occurs. No one in the United States of America should have to live in fear of violence or discrimination because of how they worship or where they or their family came from.”
“The ability to practice one’s faith freely, and without interference, is a fundamental right, enshrined in our constitution and protected by our nation’s civil rights laws,” said Deputy Assistant Attorney General Smith. “The Justice Department is committed to protecting religious liberty. Recent events both domestically and abroad, have resulted in increasing threats to people of faith, including Jewish, Muslim, and other communities and institutions. It is in moments like this that we must refocus our efforts on protecting religious freedom for all people in our country.”
U.S. Attorney Sellinger, Deputy Assistant Attorney General Smith, religious leaders in New Jersey whose organizations have benefited from RLUIPA’s protections and attorneys who have experience litigating RLUIPA cases spoke at the event. Approximately 100 members of many religious communities, including Muslim, Jewish and Christian communities, attended the event.
For more information about the event and others the Civil Rights Division plans to hold around the country, please see the department’s RLUIPA’s website. All events are open to the public.
RLUIPA was passed unanimously by Congress and signed into law on Sept. 22, 2000, and contains provisions covering religious land use and religious exercise by people who are incarcerated. Since RLUIPA’s passage, the Department has opened over 150 formal investigations and filed 28 lawsuits and 34 friend of the court briefs related to RLUIPA’s land use provisions, including several in the District of New Jersey. Since 2016, the U.S. Attorney’s Office has filed four lawsuits and two friend of court brief’s related to RLUIPA’s land use provisions. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
Individuals who believe they have been subjected to religious discrimination in land use or zoning decisions may file a complaint with the U.S Attorney’s Office at www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339. Individuals may also contact the Civil Rights Division Housing and Civil Enforcement Section at (833) 591-0291 or submit a complaint through the complaint portal on the Place to Worship Initiative website.
U.S. Attorney’s Office Recognizes National Domestic Violence Awareness Month; Announces Justice Department Funding for Community-Based ResponsesRead the Press Release
PROVIDENCE, RI – The Department of Justice joins survivors, victim service providers, advocates, and communities nationwide in recognizing National Domestic Violence Awareness Month (DVAM). This is a time to center the experiences of survivors, honor those who have lost their lives to domestic violence; express gratitude to the countless individuals in the movement to end violence; and raise awareness about issues of domestic violence, dating violence, sexual assault, and stalking. As it concludes its month-long observance of DVAM, the U.S. Attorney’s Office for the District of Rhode Island is proud to announce that the Department’s Office on Violence Against Women (OVW) has awarded approximately $1.25 million to Rhode Island service providers to bolster coordinated community responses aimed at bringing an end to domestic violence, sexual assault, dating violence, and stalking.
Data from the most recent National Intimate Partner and Sexual Violence Survey indicate that about 41% of women and 26% of men experienced contact sexual violence, physical violence, and/or stalking by an intimate partner and reported an intimate partner violence-related impact during their lifetime. Domestic violence rates are even higher for American Indian and Alaska Native populations, Black individuals, people of color, people with disabilities, and LGBTQI+ individuals.
Nationally, the announced grants will reach Tribal nations, historically marginalized communities, underserved communities, college and university campuses, rural towns, culturally specific communities, and more. The funding prioritizes increasing access to justice, improving survivor safety, holding perpetrators accountable, and offering training and technical support to professionals addressing these crimes.
Community-based agencies in the District of Rhode Island received the following funds for the 2023 fiscal year:
- OVW awarded $232,584 to Day One and $108,034 to the Rhode Island Coalition Against Domestic Violence under the State and Territory Domestic Violence and Sexual Assault Coalitions Program to enhance the coordination between courts, child protective services agencies, advocates, law enforcement, and community programs to encourage trauma-informed, survivor-centered responses to domestic violence and sexual assault.
- OVW awarded $400,000 to Progresso Latino under the Sexual Assault Services Culturally Specific Program (SAS Culturally Specific Program) to support communities in establishing or expanding culturally appropriate services that address the needs of sexual assault survivors from culturally specific communities.
- OVW awarded $500,000 to Sojourner House under the Transitional Housing Assistance Grants for Victims of Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program (Transitional Housing Program) to support programs that provide 6 to 24 months of transitional housing or housing assistance to survivors of domestic violence, sexual assault, dating violence, and stalking.
“These grant funds from the Office on Violence Against Women are a critical part of the Department’s effort to assist our Rhode Island community partners as they support survivors and stand up for victims across our state, not just in court, but throughout their courageous efforts to carry on with their lives in the wake of violence,” commented U.S. Attorney Zachary A. Cunha.
“Every day, a vast network of dedicated individuals helps domestic violence survivors access multiple pathways to safety, justice, and healing,” said OVW Director Rosie Hidalgo. “OVW understands that there is no one-size-fits-all approach to addressing domestic violence. These funds will enable communities to increase capacity and strengthen a coordinated community approach to prevent and address violence in more comprehensive ways tailored to their communities. Together, with our grantees, we are building a future where individuals and families can live and thrive without the threat of intimate partner violence.”
OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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U.S. Attorney’s Office Reaches Settlement with Kansas Nail Salon After Complaint of Disability DiscriminationRead the Press Release
KANSAS CITY, KAN. – The U.S. Attorney’s Office has reached a settlement with a Kansas nail salon to resolve allegations that the salon discriminated against an individual with a disability in violation of the Americans with Disabilities Act of 1990 (ADA), U.S. Attorney Kate E. Brubacher announced today.
Under the settlement, Pretty Nails, Inc. of Shawnee agrees to adopt a non-discrimination policy and post it in a conspicuous place, to train current and future employees on the requirements of Title III of the ADA, and to pay $1,500 in damages to the individual complainant in this matter. Title III prohibits disability discrimination in places of public accommodation, like nail salons. The settlement resolves allegations that Pretty Nails discriminated against a woman with cerebral palsy, who uses a motorized wheelchair, by refusing to provide nail services.
“What was supposed to be a fun outing to get her nails done, instead turned into an ordeal that left the complainant in this case upset and embarrassed,” said U.S. Attorney Kate E. Brubacher. “We at the U.S. Justice Department hope to spare people with disabilities from these kinds of painful experiences by educating business owners and their employees about disability rights laws.”
The Department of Justice’s enforcement efforts under the ADA seek equal opportunity and dignity in all aspects of life, including access to public accommodations such as nail salons. This settlement agreement is the fourth agreement that the Department of Justice has reached with a nail salon through its U.S. Attorney Program for ADA Enforcement, and the first in the District of Kansas. In June 2021, the U.S. Attorney’s Office for the Middle District of North Carolina entered a settlement agreement resolving an allegation that a nail salon in Durham, North Carolina, refused to provide services to an individual with HIV. In June 2022, the U.S. Attorney’s Office for the Eastern District of Louisiana reached a settlement agreement with a nail salon in Harahan, Louisiana, to resolve an allegation that an individual was refused services because of the inability to transfer out of their wheelchair. And in February 2023, the U.S. Attorney’s Office for the District of New Jersey entered a settlement agreement with a nail salon in Ocean County, New Jersey, to resolve allegations that the salon discriminates against individuals with mobility impairments.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office Civil Rights Unit at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
The government is represented by the Civil Rights Coordinator, Andrea L. Taylor of the U.S. Attorney’s Office in Kansas City, Kansas.
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U.S. Attorney’s Office for the Middle District of Pennsylvania Celebrates Funding Announced During Domestic Violence Awareness MonthRead the Press Release
SCRANTON - The Department of Justice joins survivors, victim service providers, advocates, and communities nationwide in recognizing October as National Domestic Violence Awareness Month (DVAM). This is a time to center the experiences of survivors, honor those who lost their lives to domestic violence; express gratitude to the countless individuals in the movement to end violence; and raise awareness on the issues of domestic violence, dating violence, sexual assault, and stalking. As part of its monthlong observance of DVAM, the U.S. Attorney’s Office for the Middle District of Pennsylvania is proud to announce that the Department’s Office on Violence Against Women (OVW) awarded $1,347,116 to the Middle District to bolster coordinated community responses aimed at bringing an end to domestic violence, as well as sexual assault, dating violence, and stalking.
Data from the most recent National Intimate Partner and Sexual Violence Survey indicate about 41% of women and 26% of men experienced contact sexual violence, physical violence, and/or stalking by an intimate partner and reported an intimate partner violence-related impact during their lifetime. Domestic violence rates are even higher for American Indian and Alaska Native populations, Black individuals, people of color, people with disabilities, and LGBTQI+ individuals.
The announced grants will reach Tribal nations, historically marginalized communities, underserved communities, college and university campuses, rural towns, culturally specific communities, and more. The funding prioritizes increasing access to justice, improving survivor safety, holding perpetrators accountable, and offering training and technical support to professionals addressing these crimes.
Specifically, the Middle District of Pennsylvania received the following funds for the 2023 fiscal year:
- OVW awarded $573,202 for PA Coalition against Domestic Violence/PA Coalition Against Rape under State and Territory Domestic Violence and Sexual Assault Coalitions Program to enhance the coordination between courts, child protective services agencies, advocates, law enforcement, and community programs to encourage trauma-informed, survivor-centered responses to domestic violence and sexual assault.
- OVW awarded $374,836 State College Borough under the Improving Criminal Justice Responses to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Grant Program to promote coordinated community responses among law enforcement agencies, courts, victim service providers, and other system partners.
- OVW awarded $399,078.00 to Widener University under the Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence, and Stalking on Campus Program (Campus Program) to support colleges and universities to develop and strengthen effective security and investigation strategies for such crimes and to develop prevention education and awareness programs.
“I am pleased to announce that the Middle District of Pennsylvania has been awarded over $1.3 million in funding from the Office on Violence Against Women,” said United States Attorney Gerard M. Karam. “These grants will help agencies, organizations, and colleges to provide victim services and to address domestic and dating violence, sexual assault, and stalking in our communities across the Middle District.”
“Every day, a vast network of dedicated individuals helps domestic violence survivors access multiple pathways to safety, justice, and healing,” said OVW Director Rosie Hidalgo. “OVW understands that there is no one-size-fits-all approach to addressing domestic violence. These funds will enable communities to increase capacity and strengthen a coordinated community approach to prevent and address violence in more comprehensive ways tailored to their communities. Together, with our grantees, we are building a future where individuals and families can live and thrive without the threat of intimate partner violence.”
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OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
For more information on the U.S. Attorney’s Office, Middle District of Pennsylvania, visit https://www.justice.gov/usao-mdpa.
U.S. Attorney's Office for Western District of Kentucky Celebrates Funding Announced During Domestic Violence Awareness MonthRead the Press Release
Louisville, KY – The Department of Justice joined survivors, victim service providers, advocates, and communities nationwide as it recognized October as National Domestic Violence Awareness Month (“DVAM”). This was a time to center the experiences of survivors; to honor those who lost their lives to domestic violence; to express gratitude to the countless individuals in the movement to end violence; and to raise awareness on the issues of domestic violence, dating violence, sexual assault, and stalking. As its monthlong observance of DVAM ends, the U.S. Attorney’s Office for the Western District of Kentucky is proud to announce that the Department’s Office on Violence Against Women (“OVW”) awarded $782,036 to organizations working in Western Kentucky to bolster coordinated community responses aimed at bringing an end to domestic violence, as well as sexual assault, dating violence, and stalking.
Data from the National Intimate Partner and Sexual Violence Survey indicate about 41% of women and 26% of men experienced contact sexual violence, physical violence, and/or stalking by an intimate partner and reported an intimate partner violence-related impact during their lifetime. Domestic violence rates are even higher for American Indian and Alaska Native populations, Black individuals, people of color, people with disabilities, and LGBTQI+ individuals.
The announced OVW grants will reach Tribal nations, historically marginalized communities, underserved communities, college and university campuses, rural towns, culturally specific communities, and more. The funding prioritizes increasing access to justice, improving survivor safety, holding perpetrators accountable, and offering training and technical support to professionals addressing these crimes.
Specifically, organizations providing services for survivors of intimate partner violence, sexual assault, and human trafficking in the Western District of Kentucky received the following funds for the 2023 fiscal year:
OVW awarded $340,618 to two Western Kentucky organizations under the State and Territory Domestic Violence and Sexual Assault Coalitions Program to enhance the coordination between courts, child protective services agencies, advocates, law enforcement, and community programs to encourage trauma-informed, survivor-centered responses to domestic violence and sexual assault. Under this initiative, ZeroV, Inc., formerly the Kentucky Coalition Against Domestic Violence, received $108,034, and the Kentucky Association of Sexual Assault Programs received $232,584. These organizations provide support for programs and shelters across Kentucky, including locations in Louisville, Elizabethtown, Owensboro, Paducah, Hopkinsville, Bowling Green, and Somerset.
OVW awarded $441,418 to Women Aware, Inc., a non-profit in Paducah, Kentucky, under the Transitional Housing Assistance Grants for Victims of Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program (Transitional Housing Program) to provide 6 to 24 months of transitional housing or housing assistance to survivors of domestic violence, sexual assault, dating violence, and stalking.
Western District of Kentucky U.S. Attorney Michael A. Bennett stated, “I am thrilled to share these funding awards from the Office on Violence Against Women which benefit organizations and service providers advocating for victims and helping survivors throughout the Western District of Kentucky escape abuse, heal from trauma, and rebuild their lives. These awards will support their ongoing commitment to providing essential services in our communities and empowering survivors and their families to realize a life free from abuse.”
“Every day, a vast network of dedicated individuals helps domestic violence survivors access multiple pathways to safety, justice, and healing,” said OVW Director Rosie Hidalgo. “OVW understands that there is no one-size-fits-all approach to addressing domestic violence. These funds will enable communities to increase capacity and strengthen a coordinated community approach to prevent and address violence in more comprehensive ways tailored to their communities. Together, with our grantees, we are building a future where individuals and families can live and thrive without the threat of intimate partner violence.”
OVW provides leadership in developing the nation’s capacity to reduce violence through implementing the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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U.S. Attorney's Office for District of Arizona to Collaborate with Colorado River Indian Tribes on Domestic Violence CasesRead the Press Release
Colorado River Indian Tribes Awarded Grant to Prosecute Domestic Violence and Sexual Assault Cases
PHOENIX, Ariz. ⸺ The Department of Justice, Office of Violence Against Women awarded the Colorado River Indian Tribes (CRIT) $830,000 to prosecute domestic violence and sexual assault occurring on tribal lands. Among other things, this grant will fund a Tribal Special Assistant United States Attorney (SAUSA).
The OVW grant will enhance the capacity of CRIT to hold domestic violence offenders accountable by partnering with the U.S. Attorney’s Office for the District of Arizona to increase law enforcement coordination, and strengthen the relationship between federal prosecutors and CRIT. Most importantly, the OVW grant will allow a CRIT SAUSA to prosecute these cases alongside Assistant U.S. Attorneys in federal court, while simultaneously staying connected to the tribe and identifying cases to remain in tribal court.
“The prosecution of these crimes is a priority for my office,” said U.S. Attorney Gary Restaino. “I am very pleased that attorneys from my office will be able to work with a CRIT SAUSA, who will bring personal cultural sensitivity to this very difficult work.”
“The Colorado River Indian Tribes is pleased and honored to have been selected to receive the Tribal Special Assistant United States Attorney grant,” said Amelia Flores, Chairwoman of the Colorado River Indian Tribal Council. “Domestic violence and sexual assault continue to harm our members, families, and children. The grant funding will allow us to improve communication and coordination among the various jurisdictions, apply best practices, improve outcomes of prosecution and community safety and ensure victims receive the services and support they need.”
OVW provides leadership in developing the nation’s capacity to reduce violence through implementing Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
RELEASE NUMBER: 2023-169_CRIT OVW GrantTwo sentenced for drug trafficking in the Eastern PanhandleRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two people have been sentenced for their roles in a drug trafficking operation in Hampshire and Mineral Counties.
Dylan Carl Keckler, age 30, of Augusta, West Virginia, was sentenced today to six years in federal prison for distribution of fentanyl. According to court documents and statements made in court, Keckler sold fentanyl with a purple hue on several occasions. During a search warrant at Keckler ‘s home, officers found fentanyl and drug paraphernalia.
Lisa Gail Crouse, age 42, of Cross Junction, Virginia, was sentenced today to 27 months in prison for conspiracy to possess with intent to distribute and to distribute heroin and fentanyl. Crouse was one of the distributors in the operation.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the cases on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of members from the Federal Bureau of Investigation, the Drug Enforcement Administration, the West Virginia State Police, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department. The Hampshire County Prosecutor’s Office assisted.
U.S. District Judge Gina M. Groh presided.
Two Men Sentenced for International Money Laundering and Bank Fraud SchemeRead the Press Release
BOSTON – Two Nigerian men were sentenced today in federal court in Boston for their roles in an expansive money laundering and bank fraud scheme that resulted in millions in losses from pandemic fraud, romance scams and other online scams.
Osakpamwan Henry Omoruyi, 37, and Osaretin Godspower Omoruyi, 36, both previously of Canton, were sentenced by U.S. District Court Judge Patti B. Saris to 78 months and 72 months, respectively. In June 2023, the defendants were each convicted following an eight-day jury trial of one count of bank fraud, one count of bank fraud conspiracy and one count of money laundering conspiracy.
“This case demonstrates that if you prey on the elderly and the vulnerable through on-line scams, you can rest assured that federal law enforcement will invest the resources to track you down and hold you accountable. These types of romance fraud schemes cause both huge financial and emotional harm,” said Acting United States Attorney Joshua S. Levy.
“What these men did is disgraceful. They cashed in on a public health crisis, stole millions from hard-working Americans who were looking for love online, struggling to feed their families, and keep their businesses afloat, and sent that money to their friends overseas,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “It is critical that every dollar spent in pandemic relief goes to those who need it, not to greedy con artists trying to cheat the system. Anyone who tries to follow in their footsteps will soon find themselves in federal court to answer for their crimes.”
“Osakpamwan Henry Omoruyi and Osaretin Godspower Omoruyi conspired with others to launder the proceeds of multiple illegal schemes, including the defrauding of multiple state workforce agencies by obtaining Pandemic Unemployment Assistance unemployment benefits using stolen identities. We will continue to work with our law enforcement partners to safeguard Department of Labor programs designed to help those that struggled during the COVID-19 pandemic,” said Special Agent-in-Charge Jonathan Mellone, U.S. Department of Labor, Office of Inspector General.
“These scammers strategically targeted and swindled unsuspecting victims,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations (HSI) New England. “Together, with our law enforcement partners, HSI is dedicated to putting a stop to these criminal acts, which inflict financial ruin on so many. Romance scams are a pervasive threat, and with our partners, HSI special agents will ensure that the transnational criminal organizations responsible for such harm are prosecuted.”
“Today’s sentencing sends a strong message: the Diplomatic Security Service is committed to making sure that those who commit fraud schemes, and use false documents to deceive and defraud their victims, face consequences for their criminal actions,” said Matthew O’Brien, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service (DSS) Boston Field Office. “Our strong relationship with the U.S. Attorney’s Office and other law enforcement agencies around the world continues to be essential in the pursuit of justice.”
The defendants opened multiple bank accounts in the names of a fake company and fake people using falsified foreign passports. The defendants then used those accounts to receive the proceeds from various frauds perpetrated by their co-conspirators, including pandemic unemployment assistance fraud, romance scams and other online scams.
The majority of the fraud proceeds came from romance scams, which occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and steal from the victim. In total, between 2019 and 2021, the bank accounts involved in the scheme received more than $2 million in fraud proceeds, most of which was transferred to overseas bank accounts controlled by the defendants and their co-conspirators.
Acting U.S. Attorney Levy, FBI SAC Cohen, DOL-OIG SAC Mellone, HSI SAC Krol, and DSS SAC O’Brien made the announcement. Assistant U.S. Attorneys Christopher J. Markham and Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two Men Charged After Smuggling 22 Undocumented Noncitizens in a Water TruckRead the Press Release
YUMA, Ariz. – Antonio Varela-Verdugo, a U.S. citizen, and Gilberto Villalva, a citizen of Mexico, were charged by complaint on October 25, 2023, with Conspiracy to Transport Illegal Aliens.
The complaint alleges that Varela-Verdugo and Villalva conspired to smuggle 22 undocumented noncitizens in the tank of a water truck. On October 23, 2023, Yuma Station Border Patrol agents followed a water truck suspected of transporting undocumented noncitizens in its tank from California into Yuma, Arizona, where the water truck stopped at a local residence. Across the street, a Honda Civic, operated by Villalva, was suspected of waiting to guide the water truck to a local stash-house. Agents interdicted both vehicles after departing the stash-house and discovered 22 individuals, all citizens of Mexico, stuffed into the tank of the water truck.
A conviction for Conspiracy to Transport Illegal Aliens carries a maximum penalty of up to 10 years in prison, a fine of $250,000, or both, and a term of up to three years supervised release.
A complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Customs and Border Protection's U.S. Border Patrol - Yuma, conducted the interdiction and subsequent investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix Division, Yuma Office, is handling the prosecution.
CASE NUMBER: 23-02657MJ
RELEASE NUMBER: 2023-170_Varela-Verdugo, et. al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Three Sentenced for Paycheck Protection Program Loan Fraud Schemes in the Northern District of OklahomaRead the Press Release
Three Tulsa-area residents who fraudulently applied for Paycheck Protection Program loans were sentenced last week in federal court, announced U.S. Attorney Clint Johnson.
First, on Oct. 23, 2023, U.S. District Judge Paul M. Arias-Marxuach sentenced William Mark Sullivan, 50, to 36 months in prison. Sullivan’s wife, Michelle Cadman-Sullivan, 43, was sentenced on Oct. 25, 2023, to 24 months in prison. The Sullivans pleaded guilty in June of 2022 to conspiracy to commit bank fraud. As a part of this case, the Sullivans fraudulently applied for approximately $2.7 million in Paycheck Protection Program loans from area banks. Judge Arias-Marxuach also ordered William Mark Sullivan and Michelle Cadman-Sullivan to serve 5 years of supervised release following their terms of imprisonment and to pay $743,776.98 in restitution to the Small Business Administration, the federal agency that guaranteed the loans.
In their plea agreements, the Sullivans stated that between April 8, 2020, and May 11, 2020, they conspired together to submit false statements and reports to Arvest Bank and Exchange Bank when they applied for numerous Paycheck Protection Program loans, totaling approximately $2.7 million. The Sullivans submitted false information, false W2s, false Form 941s and false 2019 IRS Schedule Cs (Form 1040) in six Paycheck Protection Program (PPP) loan applications. They further stated that they had knowingly certified all the information in the applications and supporting documents were true and correct when they knew the information to be incorrect. The couple admitted to transferring the $742,926.50 in funds they received through various bank accounts and using the funds for personal expenses.
Mr. Sullivan also stated in his plea agreement that he had represented on applications that “Oklahoma Paving” had an average monthly payroll of $50,546.41 on April 8, 2020, and “USA-1 Construction” had an average monthly payroll of $143,483.00 on April 30, 2020.
Similarly, Mrs. Sullivan stated that in their PPP loan applications, she falsely represented that “U.S. Central Construction” had an average monthly payroll of $26,053.00 on April 28, 2020; “Oklahoma Energy” had an average monthly payroll of $279,101.66 on May 4, 2020; “Oklahoma Paving” had an average monthly payroll of $279,101.66 on May 4, 2020; and “Oklahoma Energy” had an average monthly payroll of $251,458.00 on May 11, 2020.
The indictment further alleges that the Sullivans misrepresented the number of businesses they owned and operated, the duration of operation for each business, the number and names of employees, the monthly payroll for each business, and the way in which the loan proceeds would be used.
Second, on Oct. 24, 2023, U.S. District Judge Paul M. Arias-Marxuach sentenced Ladawn Shazzelle Pinkney to 6 months in federal prison followed by 6 months of home confinement and 2 years of supervised release for her participation in a Paycheck Protect Program loan fraud scheme. Judge Arias-Marxuach further ordered Pinkney to repay the U.S. Small Business Administration $41,828.46 in restitution.
As a part of her plea agreement entered in July of 2022, Pinkney plead guilty to wire fraud. She admitted that between March 20, 2021, and April 21, 2021, she made two fraudulent loan applications on behalf of a business that did not exist before the COVID-19 pandemic. According to the indictment in the case, Pinkney also received forgiveness for 100 percent of the PPP loans. In her applications for loan forgiveness, Pinkney falsely stated that she used the loan proceeds for payroll and other eligible uses of PPP loan proceeds.
“All three of these individuals repeatedly lied to banks to obtain government funds intended to retain employees at legitimate businesses during the height of the COVID-19 pandemic,” said U.S. Attorney Clint Johnson. “My office will continue to hold fraudsters accountable for misusing federal emergency assistance.”
“These sentencings send a clear warning that you will be brought to justice if you defraud the federal government of pandemic relief funds,” said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office in this endeavor to hold fraudsters accountable for their crimes.”
“Conspiring to fraudulently obtain federal funds that are meant to provide assistance to nation’s small businesses is unacceptable,” said SBA OIG’s Central Region Special Agent-in-Charge Brady Ipock. “These sentences demonstrate that those responsible will be held accountable. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
The Small Business Administration Office of Inspector General, Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; U.S. Department of Treasury Inspector General for Tax Administration; and FBI conducted the investigation. Assistant U.S. Attorneys Cymetra M. Williams and Matthew Feeley prosecuted these cases.
To learn more about the Justice Department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
St. Louis Man Sentenced to 57 Months in Prison for Aiding $666,656 in Pandemic FraudRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Tuesday sentenced a man who helped at least 20 people file fraudulent pandemic loan applications that reaped $666,656 to a prison term of 57 months and ordered him to repay the money.
Jacob Eldridge, 45, of St. Louis, solicited at least 20 friends and acquaintances to file fraudulent applications for Paycheck Protection Program loans from at least Jan. 1, 2021 to Jan. 13, 2022. Eldridge often drafted and submitted fraudulent applications on behalf of those people. On at least 10 applications, Eldridge included entirely fictitious or substantially inflated gross annual income figures to max out the loans. He often also submitted bogus IRS forms on behalf of the businesses.
In exchange for his help, many of the applicants paid Eldridge at least ten percent of the loan proceeds, totaling about $50,000.
The loans were intended to help struggling business owners and their employees during the COVID-19 pandemic.
In court, Assistant U.S. Attorney Derek Wiseman said Eldridge used the “darkest days” of the pandemic, when Americans were suffering, “to line his pockets.”
Judge Ross echoed that, tell Eldridge, “We were in a desperate situation… and you took advantage of it.”
Eldridge pleaded guilty in May to one felony count of wire fraud.
The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman prosecuted the case.
Sex Offender Pleads Guilty to Child Exploitation ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SHELDON THOMSON, 35, last residing in Norwich, waived her right to be indicted and pleaded guilty today in New Haven federal court to possession of child pornography.
According to court documents and statements made in court, in 2007, Thomson, who now identifies as female, was convicted in state court of sexual assault in the first degree, involving sexual intercourse with a person under the age of 13, and of risk of injury to a child. She was released from prison in November 2015 and began serving a term of probation. In May 2022, Thomson’s state probation officer seized multiple cellphones, a tablet, and a storage card from Thomson, her vehicle, and her residence. Analysis of the seized devices revealed more than 100 images and videos depicting the sexual abuse of children, including prepubescent children.
Sentencing is scheduled for January 23, 2024, at which time Thomson faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of 20 years. The penalties in this matter are enhanced based on Thomson’s prior convictions for sexual assault in the first degree and risk of injury to a minor.
This matter has been investigated by Homeland Security Investigations (HSI) with the assistance of the State of Connecticut Office of Adult Probation. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Second Wiregrass Region Defendant Sentenced for Wire Fraud and Identity TheftRead the Press Release
Montgomery, Alabama – Today, Acting United States Attorney Jonathan S. Ross announced that a federal judge sentenced 26-year-old Jalen Kendel Whaley, a resident of Slocomb, Alabama, to 61 months in prison for his role in an identity theft scheme.
According to his plea agreement and other court records, in 2020, Whaley and co-defendant Courtney Jamal Byrd, 29, from Headland, Alabama, operated a scheme through which they obtained and then used stolen identifying information, identification documents, and credit or debit cards. Whaley and Byrd transferred the stolen information physically and by digital means, including social media. They then used the identity information to make fraudulent financial transactions.
Previously, Whaley and Byrd pleaded guilty to wire fraud and aggravated identity theft in federal court. On October 3, 2023, a judge sentenced Byrd to 51 months in prison. Whaley’s sentencing occurred on October 25, 2023.
The FBI and Dothan Police Department investigated this case, with Assistant United States Attorney J. Patrick Lamb prosecuting.
Schenectady Man Sentenced to 120 Months for Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Jeffrey C. Civitello, Sr., age 52, of Schenectady, New York, was sentenced today to 120 months in prison for conspiring to traffic about 15 kilograms of cocaine in March and April 2021.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
Civitello Sr. and his son Jeffrey C. Civitello Jr., both of Schenectady, and Richard D. Sinde, of Fort Lee, New Jersey, were convicted on all counts following an 8-day trial in April 2023.
United States Attorney Carla Freedman stated: “Today’s sentencing will keep Schenectady safe from someone who worked with his own son and experienced drug traffickers from the New York City area to transport large amounts of cocaine to Schenectady. I commend the DEA and its task force members for bringing this sophisticated drug dealer to justice.”
DEA Special Agent in Charge Frank Tarentino stated: “Jeffrey Civitello Sr. and his five-man conspiracy used a sophisticated trafficking ring to push cocaine throughout the streets of Schenectady. This sentencing is a prime example of how the proximity to New York City helps fuel drug trafficking organizations throughout the state and the northeast. New York City is the finance capital of the world to include drug cartels using it as a transit hub for poison. I applaud our law enforcement partners for their steadfast efforts to bring Civitello Sr. and his co-conspirators to justice.”
The trial evidence demonstrated a conspiracy between five men: the three defendants on trial, as well as Christopher J. Kelly, of Brooklyn, New York, and Robert J. Ingrao, of Lodi, New Jersey.
As part of the conspiracy, Kelly delivered 3 kilograms of cocaine to Civitello Sr. in Schenectady on March 29, and Kelly and Sinde an additional 3 kilograms to Civitello Sr. on March 31. Also on March 31, the Civitellos ordered more cocaine and suggested that Kelly use a 2018 Jeep Grand Cherokee owned by Civitello Jr., which contained, in its trunk, a sophisticated, hidden compartment, also known as a “trap.” Unbeknownst to the conspirators, the DEA had placed a court-authorized tracker on the Jeep several months prior, as part of an investigation of Civitello Jr.
Sinde then drove the Jeep from Schenectady to Fort Lee, and the following evening met Kelly in Breezy Point, New York, on the Rockaway Peninsula, where Kelly and Sinde loaded up the Jeep’s hidden compartment with 9 kilograms of cocaine to be delivered the following day to the Civitellos in Schenectady.
The following day, on April 2, 2021, Ingrao went to Sinde’s house and got into the blue Jeep, driving it north on Interstate 87. A New York State Police Trooper, at the DEA’s request, conducted a stop on Ingrao in Greene County. The Trooper then located 9 kilograms of cocaine in the Jeep’s hidden compartment.
As part of the conspiracy, the Civitellos were arranging for a “trap” to be installed in another Jeep used by Sinde, so that Sinde could continue to traffic drugs to the Civitellos after Kelly went to state prison for a prior cocaine case; they abandoned that plan following the seizure of 9 kilograms of cocaine from Civitello Jr.’s Jeep on April 2.
United States District Judge Mae A. D’Agostino also ordered Civitello Sr. to serve a 5-year term of supervised release and to forfeit $240,000. In 1999, Civitello Sr. was convicted in federal court of conspiring to distribute cocaine and money laundering, and received a 72-month term of imprisonment.
Civitello Jr. is scheduled to be sentenced on December 12, and Sinde is scheduled for sentencing on December 19.
On July 28, 2023, Judge D’Agostino sentenced Ingrao to 37 months in prison, with 3 years of supervision to follow. On August 21, she sentenced Kelly to 41 months in prison, to be followed by a 4-year term of supervised release, and to pay a $25,000 fine.
This case was investigated by the DEA’s Capital District Drug Enforcement Task Force, which includes DEA Special Agents and investigators from state and local police agencies, including the Saratoga Springs Police Department, the Saratoga County Sheriff’s Office, the Washington County Sheriff’s Office, the Columbia County Sheriff’s Office, and the New York State Police.
Assistant U.S. Attorneys Michael Barnett and Dustin C. Segovia are prosecuting this case.
Schenectady Man Pleads Guilty to Marijuana and Firearms OffensesRead the Press Release
ALBANY, NEW YORK – Jeffrey C. Civitello Jr., age 24, of Schenectady, New York, pled guilty today to conspiring to traffic more than 100 kilograms of marijuana, and to possessing two firearms in furtherance of a drug trafficking crime.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
Civitello Jr. admitted that from 2019 to 2021, he worked with others to acquire and sell more than 100 kilograms of marijuana.
On October 21, 2021, the DEA executed a federal search warrant on Civitello’s penthouse apartment residence in Schenectady. Investigators located approximately 75 pounds of marijuana, mostly packaged in 1-pound bags, which Civitello Jr. intended to sell. Additionally, they found $407,545 in cash and a 14-karat Miami Cuban chain, all of which were proceeds of drug trafficking.
In Civitello Jr.’s bedroom, investigators located a loaded Taurus Judge Public Defender revolver and a Smith and Wesson M&P 15-22 rifle loaded with a high-capacity magazine containing numerous .22 caliber rounds, including a round in the chamber. In pleading guilty, Civitello Jr. admitted that he possessed these firearms to protect himself in the event that someone attempted to enter his apartment and steal his marijuana or his drug proceeds.
Sentencing is scheduled for March 5, 2024 before United States District Judge Mae A. D’Agostino. The parties have jointly recommended to Judge D’Agostino that Civitello Jr. receive a 10-year term of imprisonment, with half of the term running consecutive to the term of imprisonment to be imposed in a separate cocaine case in which Civitello Jr. faces at least 10 years in prison after being convicted at trial.
Civitello Jr. has already forfeited the $407,545 in cash found in his safe, and has also agreed to forfeit the firearms, ammunition and the Miami Cuban chain, and to entry of a $250,000 money judgment against him.
This case was investigated by the DEA’s Capital District Drug Enforcement Task Force, which includes DEA Special Agents and investigators from state and local police agencies, including the Saratoga Springs Police Department, the Saratoga County Sheriff’s Office, the Washington County Sheriff’s Office, the Columbia County Sheriff’s Office, and the New York State Police. Assistant U.S. Attorney Michael Barnett is prosecuting this case.
San Antonio Couple Sentenced for Claiming Deceased Mother’s Federal BenefitsRead the Press Release
SAN ANTONIO – A San Antonio couple was sentenced in federal court today to five years probation and ordered to pay $218,730.60 in restitution for theft of government funds.
According to court documents, Tracy Stephanie Grubbs, 59, failed to report her mother’s death to the Social Security Administration and the Department of Veterans Affairs. From January 2011 to December 2018, Grubbs received and negotiated SSA and VA benefit payments intended for her deceased mother. Grubbs would write checks to her husband Gary Lewis Grubbs, 70, who would negotiate the check and use the funds for his own benefit. Both defendants received the same penalty.
“Long term fraud deprives government agencies like the Social Security Administration and the VA of valuable resources,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My office, along with our law enforcement partners, will continuously pursue these cases to guard vital resources for Americans in need.”
“This sentence holds Ms. Grubbs accountable for deliberately using her deceased mother’s Social Security benefits for years until SSA OIG uncovered a death certificate for her mother; theft of government funds is a federal crime, which we will always aggressively pursue,” said Inspector General Gail S. Ennis for SSA. “I want to thank the VA OIG for its efforts in this investigation and the U.S. Attorney’s Office for prosecuting this case.”
“This sentence sends a clear message that those who would defraud VA programs intended for deserving veterans and their families will be held accountable,” said Special Agent in Charge Kris Raper for the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “The VA OIG is grateful to the U.S. Attorney’s Office and our law enforcement partners for their efforts to achieve justice in this case.”
The SSA OIG and VA OIG investigated the case.
Assistant U.S. Attorney Tiffany Miller prosecuted the case.
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Sacramento County Men Indicted for Money Laundering ConspiracyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment last week against brothers Denis Gutsu, 31, of Antelope, and Maxim Gutsu, 26, of Rancho Cordova, charging them with conspiracy to commit money laundering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between December 2017 and March 2019, Denis Gutsu and Maxim Gutsu bought gift cards for a national retailer from persons who had obtained the gift cards using stolen credit card numbers. The Gutsu brothers bought these gift cards at a significant discount and then, usually within a day, sold the gift cards to an online gift card exchange. The brothers agreed with the exchange to sell these gift cards at a discount. In return, the online exchange passed on the discount to buyers who would quickly spend the gift cards. This sequence allowed the fraudulently obtained gift cards to be spent before the national retailer could void them due to fraud.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.
If convicted, Denis Gutsu and Maxim Gutsu each face a maximum statutory penalty of 20 years in prison and a fine of $500,000 or twice the value of the property involved in the money laundering. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Repeat Sex Offender Pleads Guilty, Sentenced to 27.5 Years in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that repeat sex offender Justin Lee Sloothaak, of Holland, Michigan, age 32, was sentenced to 27 years and 6 months in federal prison following Sloothaak’s guilty plea to sexually exploiting a child.
“The sexual exploitation of children is inexcusable and intolerable,” said U.S. Attorney Totten. “Sexual predators who commit heinous crimes against children inflict lifelong damage in the lives of their young victims. My office is committed to working with law enforcement partners to ensure that sex offenders who assault our children are held fully accountable.”
Investigators from the Ottawa County Sheriff’s Office and the Federal Bureau of Investigation uncovered evidence that Sloothaak sexually assaulted a child from West Michigan in 2022. Sloothaak filmed the assault using his smartphone and included the video in his collection of other pornographic videos featuring children. At the time Sloothaak committed the offense, he was on parole following his 2015 sexual assault of another child.
While explaining the reasons for Sloothaak’s lengthy sentence, United States District Judge Jane M. Beckering remarked on the seriousness of Sloothaak’s crime, observing, “This is, absent murder, probably the most traumatizing thing you can do to a human being, especially a minor.”
“The FBI is deeply committed to protecting the most vulnerable members of our society, particularly our children, and bringing predators like the defendant to justice,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The sentence in this case reflects the gravity of the crimes committed, which are particularly distressing given the defendant’s repeated attempts to harm and exploit minors. I want to express my gratitude to the dedicated law enforcement partners of the West Michigan Based Child Exploitation Task Force (WEBCHEX) for their invaluable assistance in securing some measure of justice for the victim.”
This case arose from Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the 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, visit https://www.justice.gov/psc.
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Rancho Cordova Man Pleads Guilty to Drug Importation and Money Laundering OffensesRead the Press Release
SACRAMENTO, Calif. —Adan Navarro, 29, of Rancho Cordova, pleaded guilty today to conspiracy to import heroin, methamphetamine, and fentanyl pills, conspiracy to distribute and possess with intent to distribute heroin, methamphetamine, and fentanyl pills, and conspiracy to launder money to Mexico, United States Attorney Phillip A. Talbert announced.
According to court documents, on June 2, 2020, Navarro coordinated and received a $20,000 cash payment on behalf of a Mexico-based drug trafficker in order to pay down a multi-kilogram heroin debt and to facilitate future larger shipments of heroin. On July 24, 2020, U.S. border agents seized a drug load that Navarro partially owned and coordinated. The load was seized immediately after it crossed from Mexico into the United States and contained approximately 21 pounds of pure methamphetamine, 2 kilograms of heroin, and 977 fentanyl-laced counterfeit prescription pills. Following this seizure, Navarro and an associate arranged to send additional money to a Mexico-based source of supply to coordinate a new shipment of drugs.
This case was the product of an investigation by Homeland Security Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Tri-County Drug Enforcement Team (TRIDENT), with assistance from Customs and Border Protection, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Rancho Cordova Police Department, the Citrus Heights Police Department, and the El Dorado County Sheriff’s Office. Assistant United States Attorney David W. Spencer is prosecuting the case.
Co-defendant Lionel Chavez pled guilty on March 21, 2023, and is scheduled to be sentenced on Dec. 12, 2023.
Navarro is scheduled to be sentenced by Judge Dale A. Drozd on March 19, 2024. Navarro faces a maximum statutory penalty of life in prison and a $10,000,000 fine on each of three drug trafficking counts, and a maximum statutory penalty of 20 years in prison and a $500,000 fine for conspiracy to launder money. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This prosecution is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. The Sacramento Strike Force is a co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Sacramento Strike Force is to identify, investigate, disrupt, and dismantle the most significant drug trafficking organizations (DTOs) and transnational criminal organizations (TCOs) shipping narcotics, firearms, and money through the Eastern District of California, thereby reducing the flow of these criminal resources in California and the rest of the United States. The Sacramento Strike Force leads intelligence-driven investigations targeting the leadership and support elements of these DTOs and TCOs operating within the Eastern District of California, regardless of their geographic base of operations.
Quincy Man Arrested for Hiding over $10 Million in Corporate IncomeRead the Press Release
BOSTON – A Quincy man was arrested yesterday in connection with his alleged involvement in filing false tax returns on behalf of his company that hid over $10 million in corporate income.
Su Nguyen, 60, was charged with aiding and assisting the filing of false tax returns. Nguyen was released on conditions following an initial appearance in federal court in Boston yesterday afternoon before U.S. District Court Magistrate Judge M. Page Kelley.
According to the charging documents, between 2016 and 2020, Nguyen was the owner and operator of General Employment Services (GES), a temporary employment agency operating in Massachusetts. Clients paid GES by check for the work performed by GES employees. Nguyen deposited a small number of client checks in a bank account that Nguyen used for GES business and reported that income to the IRS. However, Nguyen allegedly cashed the majority of client checks at a check casher located in Worcester and used that cash on himself and to pay some employees’ wages. It is alleged that in total, Nguyen cashed over $10 million in client checks and did not report that income or the wages paid in cash to the IRS. By doing so, Nguyen and GES failed to pay over $2 million in taxes.
Each count of aiding and assisting the filing of false tax returns provides for a sentence of up to three years in prison, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Harry T. Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Phoenix Man Sentenced to 37 Months for Selling Machine Gun to Undercover AgentRead the Press Release
PHOENIX, Ariz. – Carlos Negrete Farias, 27, of Phoenix, was sentenced on October 2, 2023, by United States District Judge Douglas L. Rayes to 37 months in prison, followed by three years supervised release. Farias pleaded guilty on February 8, 2023, to Possession of a Machine Gun.
On January 31, 2022, Farias agreed to provide an Undercover Agent (UC) a “fun AR” and $3,000.00 in exchange for a .50 caliber rifle. Subsequently, Farias sent the UC a video of an unknown individual shooting a fully automatic AR-15 style rifle.
Farias was arrested on February 8, 2022, during an exchange with the UC. At the time of his arrest, Farias was found with a machine gun conversion device in his pocket, knowing that it was a part designed and intended for use in converting a semi-automatic weapon into a machinegun.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-00149-PHX-DLR
RELEASE NUMBER: 2023-167_Farias# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Philadelphia Man Sentenced to 121 Months in Prison for Drug Trafficking OffenseRead the Press Release
According to U.S. Attorney Gerard M. Karam, Speedwell was part of a large-scale drug trafficking operation moving quantities of methamphetamine from Philadelphia to Altoona, Pennsylvania. Law enforcement conducted a coordinated traffic stop on October 7, 2019, in York County, in which Speedwell was a passenger of the vehicle and found in possession of more than 500 grams of methamphetamine.
The matter was investigated by the Pennsylvania State Police, the Pennsylvania Office of Attorney General, and the Drug Enforcement Administration. Assistant U.S. Attorney Scott R. Ford prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Perry County Man Sentenced to 121 Months’ Imprisonment for Receiving Child PornographyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 30, 2023, Todd Franklin Stydinger, age 42, of Perry County, Pennsylvania, was sentenced by United States District Court Judge Christopher C. Conner to 121 months’ imprisonment for receiving child pornography.
According to United States Attorney Gerard M. Karam, Stydinger previously pleaded guilty to receiving images and videos of child pornography. A search warrant was executed on Stydinger’s residence, and 13 electronic devices were seized. It was found that Stydinger downloaded 198 images and 73 videos depicting child pornography using multiple platforms.
Judge Conner also ordered Stydinger to serve 15 years on supervised release after the conclusion of his prison sentence and ordered Stydinger to pay approximately $35,000 in restitution and assessments.
The matter was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney Christian T. Haugsby prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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Peoria, Illinois, Man Sentenced to Three Years of Probation for Paycheck Protection Program FraudRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Andre K. Johnson, 25, was sentenced on October 30, 2023, to three years of probation for making false statements related to the federal Paycheck Protection Program (PPP). United States District Judge James E. Shadid also ordered Johnson to pay restitution in the amount of $30,586.05 and to serve six months of home detention.
The PPP provided federal funds to small businesses that were directly affected by the COVID-19 pandemic to pay up to eight weeks of payroll costs, rent, utilities and mortgage interest. The program was implemented by the Small Business Administration (“SBA”) and administered by third-party lenders. The PPP was enacted via the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, an economic bill that passed in March 2020 in response to the economic fallout caused by the pandemic.
Johnson was indicted in March 2023 and pleaded guilty in June 2023 to one count of making a false statement to obtain a PPP loan. From May 2020 to September 2021, Johnson fraudulently obtained PPP funds to which he was not entitled by submitting a false PPP application, as well as a fraudulent PPP loan forgiveness application. Johnson claimed to be a self-employed individual who was the sole proprietor of an alleged jewelry and watch wholesale store with a taxable gross income of $100,000 on his loan application. He was held responsible for losses to the SBA of $23,410.05 and Harvest Small Business Finance LLC, in the amount of $7,176.00.
In addition to the fraudulent PPP loan, Johnson fraudulently tried to obtain over $26,000 in unemployment benefits from the states of Illinois, Pennsylvania, Indiana, and California.
The statutory penalties for making a false statement are up to five years imprisonment, a possible $250,000 fine, and up to three years of supervised release.
The Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation, Springfield Field Office, investigated the case. Criminal Chief Darilynn J. Knauss represented the government in the prosecution.