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8 December 2023
Federal Court Permanently Stops City of Springfield, Illinois, from Enforcing Discriminatory Ordinance and Awards Civil PenaltiesRead the Press Release
SPRINGFIELD, Ill. – This week, a federal court in Illinois entered a permanent injunction against the City of Springfield, Illinois, prohibiting it from enforcing a local spacing ordinance that bans people with disabilities from living in homes within 600 feet of one another if the home has five or fewer residents. The court’s order follows a July 2022 trial at which a jury awarded $293,000 in damages to the home’s residents, their families, and Individual Advocacy Group (IAG), the state-licensed agency that provides services to the home’s residents.
“Discriminatory zoning laws that ban people with disabilities from living in the community violate the Fair Housing Act,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Restrictive zoning laws and policies that prevent people with disabilities from integrating into society at large have no place in our marketplace today. The Court’s decision makes clear that there are real consequences to cities and other municipalities when they unlawfully and immorally exclude people with disabilities from residential neighborhoods.”
“I commend the Justice Department’s Civil Rights Division and my office for obtaining this groundbreaking civil rights decision,” said U.S. Attorney Gregory K. Harris for the Central District of Illinois.
“This case illustrates what can happen when government action erodes a basic civil right: a group of individuals almost lost their home,” said Assistant U.S. Attorney Joshua I. Grant for the Central District of Illinois. “As many Springfield residents have expressed to our office, our community should be open to everyone, including individuals with disabilities. The U.S. Attorney’s Office will continue to work with the Department of Justice to ensure that the Fair Housing Act’s guarantee of equal housing and access to justice is available to all citizens in the Central District of Illinois.
In 2014, three residents with intellectual and physical disabilities moved into a single-family home in Springfield where they received community residential services from IAG. Such arrangements, known as Community Integrated Living Arrangements (CILAs), permit residents with disabilities to live in an integrated community setting rather than an institution. Even though the home was operating in compliance with state requirements, the city attempted to shut it down in 2016 by relying on a local spacing ordinance that prohibited two homes for individuals with disabilities from operating within 600 feet of one another.
The Justice Department filed suit against the City of Springfield in 2017. In 2020, the court ruled that the city had violated the FHA by enforcing the spacing ordinance against the home. In July 2022, a jury determined that the city should pay a total of $293,000: $162,000 in compensatory damages to the residents of the home and their guardians and $131,000 in compensatory damages to IAG.
The court also awarded the United States $61,982.50 in civil penalties against the city for violating the Fair Housing Act. In awarding civil penalties against the city, the court recognized that the city’s attempts to close the home and its restrictive zoning ordinance impeded the integration of people with disabilities from institutions into the community, a right guaranteed by the Supreme Court’s 1999 decision in Olmstead v. L.C. As the court explained, the civil penalty award against the City of Springfield will “make clear to municipalities that these facially discriminatory spacing rules may not be used to hinder the trend of shifting persons with disabilities from institutions to community-based residences.” The court further permanently enjoined the city from taking any action against the owners or residents of the home, ordered the city to undergo fair housing training and awarded $53,654,50 in prejudgment interest on the jury’s damages award to IAG. This is one of the largest civil penalties the Department of Justice has obtained against a municipality in Illinois for violations of the FHA.
The FHA prohibits discrimination in housing because of disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination may submit a report online at www.civilrights.justice.gov
Federal Court Permanently Stops City of Springfield, Illinois from Enforcing Discriminatory Ordinance and Awards Civil PenaltiesRead the Press Release
This week, a federal court in Illinois entered a permanent injunction against the City of Springfield, Illinois, prohibiting it from enforcing a local spacing ordinance that bans people with disabilities from living in homes within 600 feet of one another if the home has five or fewer residents. The court’s order follows a July 2022 trial at which a jury awarded $293,000 in damages to the home’s residents, their families and Individual Advocacy Group (IAG), the state-licensed agency that provides services to the home’s residents.
“Discriminatory zoning laws that ban people with disabilities from living in the community violate the Fair Housing Act,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Restrictive zoning laws and policies that prevent people with disabilities from integrating into society at large have no place in our marketplace today. The court’s decision makes clear that there are real consequences to cities and other municipalities when they unlawfully and immorally exclude people with disabilities from residential neighborhoods.”
“I commend the Justice Department’s Civil Rights Division and my office for obtaining this groundbreaking civil rights decision,” said U.S. Attorney Gregory K. Harris for the Central District of Illinois. “We will continue to ensure that the Fair Housing Act’s guarantee of equal housing and access to justice is available to all people in my district.”
In 2014, three residents with intellectual and physical disabilities moved into a single-family home in Springfield where they received community residential services from IAG. Such arrangements, known as Community Integrated Living Arrangements (CILAs), permit residents with disabilities to live in an integrated community setting rather than an institution. Even though the home was operating in compliance with state requirements, the city attempted to shut it down in 2016 by relying on a local spacing ordinance that prohibited two homes for individuals with disabilities from operating within 600 feet of one another.
The Justice Department filed suit against the City of Springfield in 2017. In 2020, the court ruled that the city had violated the FHA by enforcing the spacing ordinance against the home. In July 2022, a jury determined that the city should pay a total of $293,000: $162,000 in compensatory damages to the residents of the home and their guardians and $131,000 in compensatory damages to IAG.
The court also awarded the United States $61,982.50 in civil penalties against the city for violating the Fair Housing Act. In awarding civil penalties against the city, the court recognized that the city’s attempts to close the home and its restrictive zoning ordinance impeded the integration of people with disabilities from institutions into the community, a right guaranteed by the Supreme Court’s 1999 decision in Olmstead v. L.C. As the court explained, the civil penalty award against the City of Springfield will “make clear to municipalities that these facially discriminatory spacing rules may not be used to hinder the trend of shifting persons with disabilities from institutions to community-based residences.” The court further permanently enjoined the city from taking any action against the owners or residents of the home, ordered the city to undergo fair housing training and awarded $53,654,50 in prejudgment interest on the jury’s damages award to IAG.
The FHA prohibits discrimination in housing because of disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination may submit a report online at www.civilrights.justice.gov.
EDVA Seizes Three Domains Used by Lebanese Hizballah and Its AffiliatesRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia announced today the seizure of three domains used by Specially Designated Nationals (SDNs), Specially Designated Global Terrorists (SDGTs), and their members associated with Lebanese Hizballah.
According to court records, the United States obtained court authorization to seize three domains registered to Verisign, Inc. – ctexlb.com, imarwaiktissad.com, and russia-now.com.
These three domains are subject to seizure as assets of entities and organizations engaged in planning or perpetrating acts of terrorism against the United States, its citizens and residents, and their property. These domains also afford a source of influence over those entities and organizations. The seizure of these domains will cut off that source of support and influence.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; Keri Farley, Special Agent in Charge of the FBI Atlanta Field Office; and Matthew S. Axelrod, Assistant Secretary for Export Enforcement at the Department of Commerce’s Bureau of Industry and Security, announced the seizure of the domain names.
The government is represented by Assistant U.S. Attorney Laura D. Withers and National Security Division Trial Attorney Jacques Singer-Emery.
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-SW-698.
Duvall, Washington, man sentenced to ten years in prison for trying to sexually exploit 11-year-old childRead the Press Release
Seattle – A Duvall, Washington, man was sentenced today to ten years in prison for attempted enticement of a minor, announced Acting U.S. Attorney Tessa M. Gorman. Steven Michael Burke, 37, was awaiting sentencing for possession and distribution of images of child sexual abuse, when he used an internet chat site to try to obtain sexually explicit images of an 11-year-old child. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez imposed twenty years of supervised release to follow prison, saying, “one of [a judge’s] primary concerns is community protection… the protection of children I hold at the highest level of all.”
Burke pleaded guilty in September 2023, admitting that, while he was awaiting sentencing for possessing images of child sexual abuse, he reached out to the 11-year-old child seeking sexually explicit images. Burke also sent the child such images. The crime was discovered after Burke was sentenced to probation for the earlier criminal conduct.
In asking for the ten-year sentence, Assistant United States Attorney Cecelia Gregson wrote to the court, “His actions are unconscionable. Not only because of the harm he has undeniably caused this child victim as detailed in her statement and not only because the defendant himself is a father of four, but because the defendant was facing the full force of federal prosecution and was still unable to curb his appetite for child exploitation material.”
Burke has been in custody since his arrest on May 4, 2023.
The case was investigated by the Department of Homeland Security Investigations
The case is being prosecuted by Assistant United States Attorney Cecelia Gregson and Special Assistant United States Attorney Laura Harmon.
Duquesne Man Pleads Guilty to Production of Material Depicting Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH – A resident of Duquesne, PA pleaded guilty in federal court to charges of production and attempted production of material depicting the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.
George Cobbs, age 41, pleaded guilty to three counts before United States District Judge W. Scott Hardy.
In connection with the guilty plea, the court was advised that on July 14, 2021; September 22, 2021; and September 30, 2021, Cobbs attempted to and did use, persuade, induce, entice, and coerce a minor to engage in sexually explicit conduct for the purpose of producing any visual depiction of such conduct.
Judge Hardy scheduled sentencing for April 9, 2024, at 9:30 a.m. The law provides for a total sentence of not more than 90 years in prison, a fine of up to $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, Cobbs remains detained.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
FBI Pittsburgh Child Exploitation and Human Trafficking Task Force, including the Federal Bureau of Investigation, the Allegheny County Police Department, and the Duquesne Police Department conducted the investigation that led to the prosecution of Cobbs.
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.justice.gov/psc.
Dominican Republic Man Sentenced to 84 Months in Prison and 3 Years of Supervised Release for Illegally Re-Entering the United StatesRead the Press Release
JOHNSTOWN, Pa. – A resident of the Dominican Republic, has been sentenced in federal court to a total of 84 months in prison followed by 3 years of supervised release on his conviction of illegal reentry by a deported alien, United States Attorney Eric Olshan announced today.
United States District Judge Stephanie L. Haines imposed the sentence on Rudys Osvaldo Torres, age 50, of the Dominican Republic on December 7, 2023.
According to information presented to the court, on or about March 15, 2021, Torres, an alien who had previously been deported and removed from the United States, and who had knowingly, intentionally, and unlawfully reentered the United States, was found in the United States in Somerset County, Pennsylvania without having applied for and received permission from the Secretary of the Department of Homeland Security to reenter the United States.
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
Mr. Olshan commended the Pennsylvania State Police and Customs Enforcement for the investigation that led to the successful prosecution of Torres.
Defendants Sentenced in Labor Racketeering Case in the Port of San JuanRead the Press Release
SAN JUAN, Puerto Rico – The Court sentenced six defendants for fraudulent and extortionate schemes perpetrated in the Port of San Juan Case. On August 11, 2022, four of the defendants were charged with running a criminal enterprise dedicated to extorting and misleading shipping companies into paying fees for the loading and unloading of cargo at the Port of San Juan—Piers 9, 10, and 11—under the threat of strikes and blockades on the part of union members of the ILA-1740 of the International Longshoremen’s Association, AFL-CIO (“ILA”) and under false representations that companies had to pay a fee in order to be able to use “union-free labor” for the loading and unloading of cargo. The other two defendants were charged with doing “chimbos,” a scheme where the defendants used the union card of another when working at the docks so that it appeared that the union member was working. Because it appeared that the person on the union card was working, the hours worked were fraudulently counted for the non-working union member’s yearly-hour requirement to qualify for healthcare benefits in the employee-benefit plan called Plan de Bienestar UTM-PRSSA.
The Court imposed the following sentences per defendant:
Pedro Pastrana-González: Count 1, RICO—21 months of imprisonment, one year of supervised release, restitution of $242,042.69
Iara I. Clemente-Rivera,: Count 1, RICO—three years of probation, restitution of $150,000
Carlos C. Sánchez-Ortiz, a.k.a. “Kaito/Caito/Presidente”: Count 1, RICO—three years of probation, restitution of $10,000
Jorge I. Batista-Maldonado: Counts 1, RICO—two years of probation, restitution of $50,000
José A. Fernández-Cruz, a.k.a. “Toñito”: Count 6, Conspiracy to Willfully Convert Funds and Falsify Records of the Plan de Bienestar UTM-PRSSA—one year of probation, restitution of $3,567.17
Carlos A. Hernández-Laguer, aka “Brea”: Count 6, Conspiracy to Willfully Convert Funds and Falsify Records of the Plan de Bienestar UTM-PRSSA— one year of probation, restitution of $3,567.17
Significantly, because of the convictions, under 29 U.S.C. § 1111, all of the defendants are prohibited from serving in any position with decision making authority and other-prohibited capacities in an employee-benefit plan for thirteen years. Furthermore, Carlos C. Sánchez-Ortiz, agreed to be prohibited under 29 U.S.C. § 504 from holding union office for thirteen years. Hence, Carlos C. Sánchez-Ortiz must immediately resign from his positions as president of the union ILA-1740 and the Plan de Bienestar UTM-PRSSA.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico; Joseph González, Special Agent in Charge of the FBI San Juan Field Office; Jonathan Mellone, Special Agent-in-Charge, New York Region, U.S. Department of Labor, Office of Inspector General; Megan Underwood, Northeastern Regional Director of the Office of Labor-Management Standards (OLMS); Crystal Colemen, Acting Regional Director, Atlanta Regional Office, U.S. Department of Labor, Employee Benefits Security Administration (EBSA); and Juan A. Vargas, Acting Inspector in Charge, U.S. Postal Inspector, Miami Division made the announcement.
The FBI was in charge of the investigation, in collaboration with the U.S. Department of Labor—Office of Inspector General, U.S. Department of Labor—Employee Benefits Security Administration, U.S. Department of Labor—Office of Labor-Management Standards, the U.S. Postal Inspection Service. Assistance was also provided by the San Juan Municipal Police, the Carolina Municipal Police, the Puerto Rico Police Bureau, and the Puerto Rico Ports Authority.
The investigation was carried out in consultation with attorneys of the Organized Crime and Gang Section of the U.S. Department of Justice.
Assistant U.S. Attorney Victor O. Acevedo-Hernández prosecuted the case.
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Dana Point Man Sentenced to 18 Months in Federal Prison for Conspiring to Export High-End Computer Servers to IranRead the Press Release
LOS ANGELES – An Orange County man was sentenced today to 18 months in federal prison for conspiring to procure and illegally ship high-end computer servers from the United States to Iran, in violation of the International Emergency Powers Act (IEEPA) and U.S. sanctions against Iran.
Johnny Paul Tourino, 69, of Dana Point, was sentenced by United States District Judge Josephine L. Staton, who also fined him $20,000. Tourino has agreed to forfeit approximately $2 million in seized funds.
On March 3, Tourino pleaded guilty to one count of conspiracy to violate IEEPA, which controls and restricts the export of certain goods from the United States to foreign nations, as well as U.S. sanctions against Iran.
According to court records, Tourino owned and operated Spectra Equipment Inc., a Laguna Niguel-based computer support and services company. Between September 2015 and March 2017, Tourino negotiated the sale of five business-class computer servers valued at $2.1 million and attempted to have them sent to Iran for use by two Iranian financial institutions, Bank Mellat and Bank Keshavarzi.
In February 2017, when the manufacturer of the servers asked Tourino to identify the end-user, he falsely stated that the servers were being sold to a bank in Africa and “NOT going to Iran.” Later that month, Tourino, through his lawyer, falsely represented to the manufacturer that the servers were going to Slovenia.
Roughly one week later, Tourino sent three checks to the manufacturer as partial payment for the servers. After learning that the Department of Treasury had blocked funds from Iran that were to be used to pay for the servers, Tourino deleted his emails and contacted the Department of Treasury and again falsely stated that the servers were not going to Iran and were destined for Slovenia.
According to court documents, in August 2015, Tourino previously brokered the sale of four business-class computer servers that were ultimately sent to Bank Mellat in Iran. Regarding these servers, Judge Staton noted “the government cannot get back the 2015 servers.” These servers offered high-level encryption allowing the users to shield information from law enforcement detection.
“Mr. Tourino knowingly violated U.S. law and sanctions by attempting to sell millions of dollars’ worth of computer equipment to Iran and doing business with sanctioned Iranian banks that have been the lifeblood of Iran’s international acts of terror and nuclear weapons program,” said United States Attorney Martin Estrada. “Today’s sentence exemplifies the unshakeable will of this Office to vigorously investigate and bring to justice persons who would undermine our national security by giving aid and comfort to hostile foreign state actors.”
“Defendant Tourino conspired to illegally export restricted equipment to a foreign adversary and took steps to conceal his activities to avoid law enforcement scrutiny,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Tourino’s activity violated U.S. economic and trade sanctions and, in the process, potentially aided an oppressive terrorist regime and put America’s long-term security interests at risk.”
“We will fully and aggressively enforce restrictions on U.S. exports to parties in Iran,” said Los Angeles Field Office Special Agent in Charge Gregory Dunlap of the U.S. Department of Commerce, Office of Export Enforcement (OEE). “OEE will continue to leverage its unique authorities to pursue violators wherever they are, and will collaborate with our law enforcement partners to achieve this goal.”
“Tourino attempted to profit from a far-reaching, extensive scheme to evade U.S. sanctions on Iran. Tourino repeatedly lied to illegally obtain and supply dual-use items to a foreign nation,” said Special Agent in Charge Tyler Hatcher of the Los Angeles Field Office of IRS Criminal Investigation. “This sentence is the result of a successful joint investigative effort with our law enforcement partners and the U.S. Attorney’s Office for the Central District of California. IRS Criminal Investigation is fully committed to protecting national security by disrupting efforts by our adversaries to violate U.S. export controls.”
The FBI, the Commerce Department’s Office of Export Enforcement, and IRS Criminal Investigation investigated this matter.
Assistant United States Attorneys Mark Takla of the Terrorism and Export Crimes Section and Bradley Marrett of the Santa Ana Branch Office prosecuted this case. The Counterintelligence and Export Control Section of the Justice Department’s National Security Division provided substantial assistance.
Construction Company President Sentenced to 10 Years in Prison for 25-Year Fraud on the U.S. GovernmentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SINA MOAYEDI, the owner of a construction company, Montage, Inc., was sentenced today to 10 years in prison, stemming from his 25-year fraud on the United States Government. MOAYEDI pled guilty in April 2023 to conspiracy to commit wire and bank fraud, conspiracy to commit bribery of a public official, and aggravated identity theft. MOAYEDI’s sentence was imposed by U.S. District Judge Jed S. Rakoff, who also presided over his guilty plea.
U.S. Attorney Damian Williams said: “From 1995 until 2021, Sina Moayedi defrauded the U.S. Government and various of its agencies through a sprawling, sophisticated scheme. Moayedi lied repeatedly about his company’s ownership and qualifications, including by claiming that it was woman-owned and Hispanic-owned; he lied to obtain a Top-Secret national security clearance; and he repeatedly paid bribes to a State Department employee to illegally obtain inside information. In total, Moayedi’s company fraudulently obtained more than 25 government contracts worth more than $125 million. Even after he was arrested in this case, Moayedi continued to commit crime, destroying electronic evidence of his frauds. For his brazen fraud on the federal government, Moayedi has now been sentenced to prison.”
According to court filings and statements made in Manhattan federal court:
In 1986, MOAYEDI founded Montage, Inc., a U.S.-based business that is primarily involved in Government construction projects, including embassies, consulates, military posts, and marine barracks around the world. From 1995 to 2021, MOAYEDI defrauded the U.S. Government — including the State Department, Treasury Department, Department of Defense, and General Services Administration — by lying in various respects. In bids for contracting work, MOAYEDI mispresented his company’s ownership, his employees’ qualifications, his company’s construction experience, and his company’s financial condition, among other things.
As to ownership, MOAYEDI falsely represented, repeatedly, that Montage was a female-owned business (or a female- and minority-owned business) in order to secure unmerited advantages in the bidding process. In fact, MOAYEDI founded, owned, ran, and controlled Montage, and he made all material decisions on Montage’s behalf. As MOAYEDI revealed to a bank that inquired about Montage’s ownership status in 2016, “I am the sole owner and president of Montage and have always been.”
As to his employees’ qualifications, MOAYEDI significantly overstated the qualifications of various Montage employees in order to, among other things, meet State Department and contractual requirements for minimum experience in certain key positions. For instance, MOAYEDI claimed, falsely, that certain Montage employees possessed engineering degrees. He also claimed, falsely, that certain individuals worked for Montage when, in fact, they did not.
As to Montage’s construction experience, MOAYEDI submitted bids to the Government in which he repeatedly falsified Montage’s purported construction experience in order to burnish the company’s alleged credentials. To ensure that the U.S. Government did not uncover these lies, MOAYEDI “backstopped” this fabricated experience by creating fraudulent email accounts and personas, so that someone else appeared to be “vouching” that Montage had performed this prior work. This required creating online web domains (the “Fabricated Domains”), so that Montage’s purported references appeared legitimate. These Fabricated Domains were extremely similar to, but one character or word different from, the legitimate web domains associated with actual entities.
As to financial condition, MOAYEDI paid a Certified Public Accountant to prepare at least four different sets of books and records, each of which was provided to a different recipient (e.g., one fraudulent set for the U.S. Government, another fraudulent set for the bank, another fraudulent set for a company that sold construction bonds, etc.).
And to ensure Montage’s eligibility for sensitive U.S. Government contracts, MOAYEDI lied to obtain and maintain his Top-Secret national security clearance, including by concealing his ties to Iran, such as his dual citizenship with Iran, his Iranian passport, and his travel to Iran.
Further, between 2014 and 2020, MOAYEDI repeatedly paid cash bribes and kickbacks to an engineer in the State Department’s Overseas Building Operations division, May Salehi, in exchange for confidential inside information relating to several State Department construction projects, including projects in Ecuador, Spain, and Bermuda. For instance, in late 2016 and early 2017, MOAYEDI paid $60,000 in cash to Salehi after Salehi provided confidential inside bidding information to MOAYEDI about the relationship between Montage’s original bid and his competitors’ bids — information that allowed Montage to raise its bid by nearly $1 million yet remain the lowest bidder on a construction project that was ultimately awarded to Montage.
In addition to fraudulently obtaining government contracts, MOAYEDI’s company also committed fraud in the execution of government contracts, including by using substandard materials, using unqualified personnel, and falsifying an architect’s signature and stamp on architectural plans that had not been reviewed by the architect, including plans that related to safety and structural issues, such as fire protection, roof design, and structural steel drawings.
MOAYEDI also defrauded his primary bank (“Bank-1”) through various misrepresentations. Montage had a multimillion-dollar line of credit at Bank-1, which MOAYEDI maintained through misrepresentations about Montage’s ownership and the value, progress, status, and existence of construction projects that Montage was performing for the U.S. Government. For instance, in or about both 2014 and 2019, MOAYEDI made material misrepresentations to Bank-1 in support of an annual extension of Montage’s line of credit, including misrepresentations about purportedly lucrative “classified” government construction projects with distinctive names like “Area 6,” which, in fact, did not exist.
MOAYEDI also obstructed justice in multiple respects: (i) in September 2021, shortly after his release on bail in this case, MOAYEDI destroyed electronic evidence of his fraud on the U.S. Government by deleting six Fabricated Domains, which (as noted) he had used to help inflate Montage’s purported construction experience in bids for U.S. Government construction projects; (ii) shortly after the execution of search warrants at Montage’s offices in September 2020, MOAYEDI witness tampered by pressuring a co-conspirator to lie to investigators; and (iii) during a civil lawsuit between the State Department and Montage, MOAYEDI lied during a sworn deposition in 2019 by falsely claiming that a Hispanic woman had been the President of Montage “ever since” 2002 and that he was merely the Vice President of Montage.
Finally, in October 2023, the Court held a multiday Fatico hearing regarding the quality of construction that MOAYEDI and Montage provided the State Department. The Court determined that MOAYEDI “provided grossly inadequate construction for several of the contracts of which he was in charge” and “that these numerous defects were intentional.” In particular, the Court found that, “[r]epeatedly, Moayedi falsely inflated the credentials of key personnel -- and in some cases, submitted names of people who never even worked for Montage -- that he touted to the State Department to win bids, only to send in their stead people that he knew were patently unqualified for their roles once he secured the contract in question.”
* * *
In addition to his prison sentence, MOAYEDI, 68, of Chevy Chase, Maryland, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $6,588,679.63 and forfeit $17,795,098.50.
May Salehi was previously sentenced to one year in prison, three years of supervised release, a fine of $500,000, and forfeiture of $60,000.
Mr. Williams praised the exceptional investigative work of the State Department, Office of Inspector General; Special Agents from the U.S. Attorney’s Office for the Southern District of New York; and the Internal Revenue Service.
The Office’s Complex Frauds and Cybercrime Unit is handling this criminal case. Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.
Columbia Man Sentenced to 20 Years in Federal Prison in Connection with Fentanyl Poisoning DeathRead the Press Release
COLUMBIA, S.C. — Cody Allen Dinkins, 32, of Columbia, was sentenced to 20 years in federal prison after pleading guilty to distributing a quantity of fentanyl resulting in death.
Evidence presented to the Court showed that on Aug. 31, 2019, the Kershaw County Sheriff’s Office responded to an apparent overdose at a residence in Kershaw County. Responders located the victim, who died at the home. A pathologist later determined the victim’s death was caused by fentanyl poisoning.
The Drug Enforcement Administration (DEA) investigated the incident, and during the investigation, law enforcement uncovered messages which appeared to be a conservation between the victim and Dinkins regarding Dinkins providing the victim with illegal drugs on Aug. 30, 2019. Later, Dinkins confessed to supplying the victim with illegal drugs on Aug. 30, 2019.
“The fentanyl epidemic is a deadly crisis that continues to plague our nation. Our office is committed to holding accountable drug traffickers who endanger our communities,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “We are grateful to DEA and the Kershaw County Sheriff’s Office for their continued efforts to protect our communities from the threat posed by drug traffickers.”
“Fentanyl is extremely dangerous to the consumer and leaves behind a trail of devastation and destruction,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “The defendant in this case had total disregard for the safety of others.”
“We are thankful for our partnership with the U.S. Attorney’s Office and DEA,” said Kershaw County Sheriff Lee Boan. “Without their federal prosecution of this case, proper justice could not have taken place through our state court system.”
United States District Judge Mary Geiger Lewis sentenced Dinkins to 240 months imprisonment, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system. Dinkins was court-ordered to pay $9,117.40 in restitution to the victim’s estate.
This case was investigated by the DEA and the Kershaw County Sheriff’s Office. Assistant U.S. Attorney Lauren Hummel is prosecuting the case.
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Clothing Wholesaler Ordered to Pay Nearly $10.4 Million for Violating U.S. Drug Trafficking Sanctions and for Customs FraudRead the Press Release
LOS ANGELES – A Paramount-based clothing wholesale company was fined $4 million, ordered to pay $6,390,781 in restitution, and placed on probation for five years for undervaluing imported garments in a scheme to avoid paying millions of dollars in customs duties and for doing business with a woman linked to Mexico’s Sinaloa drug cartel.
Ghacham Inc., which does business under the “Platini” brand name, was sentenced by United States District Judge Maame Ewusi-Mensah Frimpong.
In addition to imposing financial penalties, Judge Frimpong required Ghacham Inc. to create and maintain an anti-money laundering compliance and ethics program and submit to review by a third-party monitor review, who will report to the court on an annual basis.
The company pleaded guilty in December 2022 to one count of conspiracy to pass false and fraudulent papers through a customhouse and one count of conspiracy to engage in any transaction or dealing in properties of a specially designated narcotics trafficker under a statute known as the Foreign Narcotics Kingpin Designation Act. This is the first criminal conviction in this district under the Kingpin Act.
Mohamed Daoud Ghacham, 39, of Bell, a Ghacham Inc. executive, pleaded guilty in December 2022 to one count of conspiracy to pass false and fraudulent papers through a customhouse. He is expected to be sentenced in the coming months.
According to court documents, Ghacham Inc. imported clothing from China and submitted fraudulent invoices to U.S. Customs and Border Protection (CBP) that undervalued the shipments, allowing the company to avoid paying the full amounts of tariffs owed on the imports.
At Mohamed Ghacham’s direction, Chinese suppliers would prepare two invoices for the clothing ordered by Ghacham Inc. – a true invoice, which reflected the actual price paid for the goods, and a fraudulent “customs invoice,” which reflected an understated price. Ghacham Inc. submitted the customs invoices to CBP and customs brokers to fraudulently reduce the tariffs owed on the imports, while it maintained the true invoices in its accounting records.
From July 2011 and February 2021, Ghacham Inc. and Mohamed Ghacham undervalued imported garments by more than $32 million and failed to pay approximately $6,390,792 in customs duties.
Ghacham Inc. also illegally conducted business with María Tiburcia Cazarez Pérez in violation of the Kingpin Act, which prohibits people and businesses in the United States from doing business with “Specially Designated Narcotics Traffickers.” Cazarez Pérez was previously listed as a Specially Designated Narcotics Trafficker under the Kingpin Act for her involvement in the financial network of Ismael “El Mayo” Zambada García and Victor Emilio Cazares Salazar, two leaders of the Mexico-based Sinaloa Cartel. Cazares Salazar was sentenced to 15 years in federal prison for drug trafficking activities in federal cases out of San Diego and New York City.
“The company flouted the Kingpin Act, doing business with member of a money laundering network used by… two of the world’s most notorious drug traffickers,” prosecutors argued in a sentencing memorandum. “It cheated taxpayers out of millions, both to save itself money and to secure an unfair edge against its competition in the Southern California garment market. And it did so through a sustained, extensive effort over the course of more than a decade.”
Homeland Security Investigations and CBP investigated this matter. The U.S. Department of Commerce Office of Export Enforcement, the Treasury Department’s Office of Foreign Assets Control, and IRS Criminal Investigation provided significant assistance.
Assistant United States Attorney Alexander B. Schwab of the Corporate and Securities Fraud Strike Force prosecuted this case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Cantina owner and son receive significant sentence for forcing young girl to engage in commercial sexRead the Press Release
McALLEN, Texas – A Mexican woman, who legally resided in Mission, and a local Texan have been ordered to federal prison for sex trafficking a young girl, announced U.S. Attorney Alamdar S. Hamdani.
Rita Martinez, 65, pleaded guilty June 30. Her son - Genaro Fuentes, 41, entered his plea Jan. 26 and admitted his role working at the bar and helping to facilitate the commercial sex.
Chief U.S. District Judge Randy Crane has now imposed a 360-month term of imprisonment for Martinez, while Fuentes was ordered to serve 72 months. Martinez and Fuentes were also ordered to pay $840,000 and $20,000 in restitution to the victims, respectively. In addition, the court forfeited the bar and the home of Martinez. At the hearing, the court heard additional testimony from eight victims, including a woman who was only 12 years old when Martinez brought her from Mexico and started trafficking her as a sex worker in her cantina. Prior to handing down the prison terms, Chief Judge Crane noted some people just have evil in their hearts.
“Martinez’s decades-long business model was simple yet evil: travel to Mexico, entice poor, young girls across the border with false promises of a better life and then force those girls to engage in sexual acts with her bar’s male patrons,” said Hamdani. “Martinez treated the victims like chattel, while physically and psychologically imprisoning them. Today’s sentence ensures the only person left imprisoned, for decades to come, is Martinez and sends a strong message to human traffickers moonlighting as bar owners: you’re next."
“Human trafficking cannot be tolerated, especially those who exploit many victims and use the promise of America to lure vulnerable women and children into the United States, only to coerce them into commercial sex acts,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains committed to identifying and prosecuting human trafficking cases, and seeking restitution for the victims who survived these heinous crimes.”
“Today’s sentence will ensure that people like Rita Martinez are no longer able to victimize anyone in vulnerable or desperate circumstances,” said Acting Special Agent in Charge Doug Olson for the FBI San Antonio Division. “We want to thank our partners in the Texas Alcoholic Beverage Commission (TABC) for their continued assistance in bringing predators like this to justice.”
For decades, Martinez smuggled unwitting women and girls from Mexico into the United States and compelled them to engage in commercial sex work in a cantina she owned and operated in Mission known as Perez Lounge, Rita’s Lounge and Rita’s Sports Bar.
Martinez arranged for the young women and girls to engage in commercial sex acts with men who were patrons at the bar. She accepted money from these clients before allowing them to take them out of the bar to engage in the commercial sex. Martinez claimed she applied the money she received from the commercial sex to the smuggling debt she imposed upon the victims for their illegal transport from Mexico into the United States. In addition to working for Martinez, many victims were forced to reside in Martinez’s home.
Martinez and Fuentes will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI led the investigation with assistance from the TABC. Assistant U.S. Attorneys Laura Garcia and Sherri Zack prosecuted the case along with Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
California Man Pleads Guilty to Distributing Child Sexual Abuse Materials over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announced that Jason Charles Nicholas (54, Ramona, CA) has pleaded guilty to distributing child sexual abuse materials over the internet. At sentencing, Nicholas faces a mandatory minimum penalty of 5 years, and up to, 20 years in federal prison and a potential lifetime term of supervised release. Nicholas was arrested on September 21, 2023 in San Diego County, California, and was ordered detained pending the resolution of this case.
According to court documents, on August 3, 2023, an undercover FBI agent (UC) in the Jacksonville area, posing as the parent of an 11-year-old “child,” was investigating individuals on a particular social media application (app) who were attempting to sexually exploit children. The UC began a private conversation on the app with user “cldad,” who was subsequently identified as Nicholas. Nicholas indicated his desire to meet the UC at a residence in northeast Florida to have sex with the 11-year-old “child.” However, Nicholas abruptly abandoned this plan and began threatening to expose the UC’s purported criminal sexual conduct unless the UC streamed live video of the “child” to Nicholas. The UC refused. Nicholas later apologized for threatening the UC, and the two continued online conversations for several weeks. Nicholas told the UC about his longtime practice of brushing up against and taking surreptitious photos (“creep shots”) of young girls in public places, and also that he had purportedly abused a young child after overdosing the child with medication.
During an online conversation on August 17, 2023, Nicholas sent the UC six videos and two photos that depicted young children being sexually abused. Further investigation by the FBI led to the positive identification of Nicholas as a resident of Ramona, California, and revealed that he had been using the online identity of an actual person who lived in Florida. On September 21, 2023, FBI agents, with assistance from the San Diego County Sheriff’s Office, arrested Nicholas as he was driving to his workplace. A search of Nicholas’ cellphone revealed that it contained at least 2,532 videos depicting minors engaging in sexually explicit conduct, many of which depicted the sexual abuse of prepubescent children, infants, and toddlers.
This case was investigated by the Clay County Sheriff’s Office, the San Diego County (California) Sheriff’s Office, the St. Johns County Sheriff’s Office, and the Federal Bureau of Investigation in Jacksonville and San Diego. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 child victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Bridgeport Teen Charged with 2 Gunpoint RobberiesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, James Ferguson, Special Agent in Charge, ATF Boston Field Division, and Bridgeport Police Chief Roderick Porter today announced that a federal grand jury in New Haven has returned a four-count indictment charging DERRICK RIVERA, 19, of Bridgeport, with offenses related to two armed robberies of Bridgeport businesses.
As alleged in the indictment, on November 11, 2022, Rivera committed a gunpoint robbery of a barbershop located on Wood Avenue in Bridgeport, and, on November 25, 2022, Rivera robbed a restaurant located on Wade Street in Bridgeport. During the second robbery, Rivera discharged a firearm, injuring the owner of the restaurant.
The indictment charges Rivera with two counts of interference with commerce by robbery (Hobbs Act robbery), an offense that carries a maximum term of imprisonment of 20 years on each count; one count of brandishing a firearm during a robbery, an offense that carries a mandatory consecutive term of imprisonment of at least seven years; and one count of discharging a firearm during a robbery, an offense that carries a mandatory consecutive term of imprisonment of at least 10 years.
The indictment was returned on November 28, 2023. Rivera appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and entered a plea of not guilty to the charges.
Rivera has been detained since his arrest on related state charges on November 25, 2023.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Bridgeport Police Department, with the assistance of the Stratford Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Biotech CEO Pleads Guilty to COVID-19 Securities Fraud SchemeRead the Press Release
A California man pleaded guilty yesterday to securities fraud, wire fraud, and obstruction of an official proceeding in connection with his scheme to defraud investors by making false and misleading statements about the purported development of a new, blood-based COVID-19 test, leading to millions of dollars in investor losses.
According to court documents, Keith Berman, 70, of Westlake Village, was the CEO and sole director of Decision Diagnostics Corp. (DECN), a public medical device company. Berman and DECN were in precarious financial condition in the lead up to the COVID-19 pandemic, and Berman wrote in internal emails that he needed a “new story” to “raise millions.” Additionally, Berman had spent hundreds of thousands of dollars of company money on personal expenditures, despite publicly claiming not to take any compensation. Faced with these financial difficulties, from February through December 2020, Berman engaged in a scheme to defraud investors by falsely claiming that DECN had developed a 15-second test to detect COVID-19 in a finger prick sample of blood. Despite his claims to the investing public, Berman knew that no such test existed.
Berman also falsely told investors that the Food and Drug Administration (FDA) was on the verge of approving DECN’s request for emergency use authorization of its purported COVID-19 test. In truth, Berman knew that his company was unwilling and unable to meet the clinical testing required by the FDA but concealed these material facts and misled investors.
As part of the alleged scheme, Berman used a fake persona to repeat false and misleading statements to investors on internet message boards, and to lull unsuspecting investors into inaction by refuting allegations of fraud and threatening potential whistleblowers with civil or criminal sanctions. Berman also obstructed a U.S. Securities & Exchange Commission (SEC) investigation into his conduct, using another false online identity to surreptitiously direct an investor to write a series of false and threatening letters to the highest levels of SEC management, including the SEC Chairman.
Berman pleaded guilty to one count each of securities fraud, wire fraud, and obstruction of an official proceeding. He is scheduled to be sentenced on April 12, 2024, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
USPIS and the FBI investigated the case.
Trial Attorneys Christopher Fenton, Kate T. McCarthy, and Matthew Reilly of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Beckley Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Angelo Johnson, 27, of Beckley, was sentenced today to three years and one month in prison, to be followed by three years of supervised release, for aiding and abetting the distribution of methamphetamine.
According to court documents and statements made in court, on July 13, 2022, Johnson sold a quantity of methamphetamine to a confidential informant, while aided and abetted by another, at a Ewart Avenue residence in Beckley. Johnson admitted to that transaction and further admitted to selling a quantity of methamphetamine to the confidential informant in Daniels on October 31, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Andrew D. Isabell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-13.
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Armed repeat offender, who triggered neighborhood lock-down, sentenced to six years in prisonRead the Press Release
Seattle – A 42-year-old Seattle man was sentenced today in U.S. District Court in Seattle to six years in prison for possession of controlled substances with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Tessa M. Gorman. Pedro Fernandez Kent triggered a neighborhood lockdown in January 2023 when he fled police in North Seattle. At the sentencing hearing U.S. District Judge Ricardo S. Martinez noted that firearms coupled with drug dealing often lead to deadly results “Everyone recognizes first of all how dangerous the particular conduct was in this case…”
According to records filed in the case, on January 15, 2023, Seattle Police were responding to a domestic violence report in North Seattle when they spotted the distinctive car driven by the suspect, Pedro Kent. Kent attempted to flee from police crashing his car into two curbs, rupturing the tires. Kent abandoned the car and ran into the yards of neighboring homes. Video from area cameras show Kent with a handgun in his hand as he ran into a backyard. Police converged on the area, alerting residents to stay in their homes with the doors locked. One couple called police reporting that the defendant appeared to be hiding in their backyard. A K-9 officer helped take Kent into custody.
In addition to the gun Kent carried when he ran from the car, police located a carbine rifle in the car as well as distribution amounts of fentanyl, cocaine, heroin, and methamphetamine. Kent also had a hatchet and a dagger in the car as well as scales and plastic baggies for drug distribution.
Kent was prohibited from possessing firearms due to previous King County convictions for burglary, theft, assault, and trafficking in stolen property.
The case was investigated by the Seattle Police Department with assistance from Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case was prosecuted by Assistant United States Attorney Cecelia Gregson.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Arizona Man Sentenced to 20 Years in Prison for Sexual AbuseRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Wade Platero was sentenced to 20 years in prison. Platero, 27, of Cove, Arizona, and an enrolled member of the Navajo Nation, pled guilty to abusive sexual contact on Jan. 19, 2023.
According to court records, on Dec. 28, 2021, officers from the Navajo Police Department responded to a domestic violence call at a residence in Cove, Arizona. Subsequently, one of the parties accused Platero of sexually assaulting a 12-year-old girl, Jane Doe, that was in his care. During a subsequent interview, Jane Doe disclosed to forensic interviewers that Platero had begun assaulting her when she was 9 years old, and the incidents had continued until the day of the domestic violence incident. Jane Doe also stated that she was scared for her younger sister’s safety. When questioned by police, Platero attempted to justify his actions by saying that Jane Doe had come on to him in the past. At the time, Platero was more than twice the 12-year-old’s age and in his mid-20s.
In his plea agreement, Platero admitted that he sexually assaulted Jane Doe on Dec. 28, 2021, the day of the domestic violence incident which caused police to become involved.
Upon his release from prison, Platero must adhere to state and federal sex offender registration requirements. His sentence also includes 15 years of Supervised Release by the United States Probation Office after release from incarceration.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department. Assistant United States Attorney Alexander F. Flores is prosecuting the case as part of Project Safe Childhood (PSC).
PSC is a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
View the Indictment View the Plea Agreement# # #
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Anaconda man sentenced to more than 12 years in prison for attempted coercion, possession of child pornographyRead the Press Release
MISSOULA — An Anaconda man who was convicted by a federal jury of attempting to coerce and entice a minor into engaging in sexual intercourse and of possessing child pornography was sentenced today to 12 years and 10 months in prison, to be followed by 10 years of supervised release, U.S. Attorney Jesse Laslovich said.
After a three-day trial that began on July 24, the jury found Christopher Todd Boudreau, 42, guilty of attempted coercion and enticement and possession of child pornography.
U.S. District Judge Donald W. Molloy presided. The court also ordered $21,000 in restitution.
In court documents and at trial, the government alleged that in July 2022, law enforcement, working in an undercover capacity on the internet, received a “friend request” from Boudreau. The undercover provided a phone number, and Boudreau initiated a text conversation. The undercover identified herself as a juvenile girl. Communications progressed, and Boudreau arranged to meet the undercover in Missoula. Boudreau repeatedly indicated his interest to engage in intimacy and stated that intimacy meant “sex.” Law enforcement arrested Boudreau on July 28, 2022, when he arrived at a location to meet the undercover. Law enforcement served a search warrant on Boudreau’s residence and found electronic media that contained thousands of images and videos of child pornography.
Assistant U.S. Attorneys Zeno B. Baucus and Brian C. Lowney prosecuted the case. The FBI’s Child Exploitation and Human Trafficking Task Force and Missoula County Sheriff’s Office 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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York Man Sentenced for Receipt, Distribution and Possession of Child PornographyRead the Press Release
Acting United States Attorney Susan Lehr announced that Jerry W. Lackey, 36, of York, Nebraska, was sentenced December 7, 2023, in federal court in Lincoln, Nebraska for receipt, distribution and possession of child pornography. Senior United States District Judge John M. Gerrard sentenced Lackey to a total of 64 months’ imprisonment. There is no parole in the federal system. After Lackey’s release from prison, he will begin a 7-year term of supervised release.
In December of 2022, the National Center for Missing and Exploited Children reported a CyberTip to the Nebraska State Patrol that an individual was sending child pornography to others. The report included the email address, username, and IP address associated with the offending account, as well as several offending videos.
Investigators obtained subpoenas and were able to identify the subscriber as Lackey. A search warrant for the residence was obtained and executed. In executing the warrant, officers made contact with Lackey at the residence. In an interview with investigators, Lackey admitted to downloading and viewing the child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Nebraska State Patrol.
Wounded Knee Man Sentenced to 30 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Wounded Knee, South Dakota, man convicted of Aiding and Abetting Second Degree Murder. The sentencing took place on December 1, 2023.
Spencer High Hawk, 27, was sentenced to 30 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
He was found guilty of Aiding and Abetting Second Degree Murder on September 8, 2023, following a four-day federal jury trial in Rapid City, South Dakota.
The conviction stems from High Hawk beating another man to death near Wounded Knee in June of 2022.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety Criminal Investigation Division. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
The defendant was remanded to the custody of the U.S. Marshals Service.
Winston-Salem Woman Pleads Guilty to False Statements in Connection with Cares Act LoanRead the Press Release
WINSTON-SALEM – MICHELLE RENEE HOLLIS, of Winston-Salem, pled guilty today to one count of making a false statement related to fraudulently obtaining an Economic Injury Disaster Loan (“EIDL”) authorized under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act and administered by the Small Business Association (“SBA”), announced United States Attorney Sandra J. Hairston.
According to court documents, HOLLIS received an EIDL loan for a business called “Hollis House.” The loan application falsified the business’s gross revenues and number of employees. Based on the fraudulent representations, the SBA granted HOLLIS an EIDL loan of $134,900 and an EIDL grant of $5,000. Following disbursement of the loan, HOLLIS used the proceeds to purchase land in California and a 2017 Porsche Cayenne.
Sentencing is scheduled to take place on March 12, 2024, at 3:00 p.m. in Winston-Salem, North Carolina, courtroom number two, before United States District Judge Thomas D. Schroeder. At sentencing, HOLLIS faces a maximum sentence of five years in prison, a period of supervised release of up to three years, and monetary penalties.
The Internal Revenue Service – Criminal Investigation is investigating the case, and it is being prosecuted by Assistant U.S. Attorney Ashley Waid.
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.
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Windsor Locks Man Who Victimized Teens Through Snapchat Sentenced to 20 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JUSTIN McKENNEY, 29, formerly of Windsor Locks, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 240 months of imprisonment, followed by a lifetime of supervised release, for child exploitation offenses.
According to court documents and statements made in Court, in October 2021, Glastonbury Police began investigating the sexual assault of a 13-year-old girl by an individual she met on Snapchat. The investigation revealed that McKenney posed as a high school student on Snapchat. He began communicating with the minor victim in September 2021, and he subsequently enticed her to engage in sexual activity.
McKenney also used Snapchat to receive child pornography from three other minor females between the ages of 14 and 17.
McKenney has been detained since his arrest on March 17, 2022. On April 11, 2023, McKenney pleaded guilty to one count of enticement of a minor to engage in illegal sexual activity, and one count of receipt of child pornography.
This matter was investigated by Homeland Security Investigations (HSI), the Glastonbury Police Department, the Windsor Locks Police Department, the Manchester Police Department, and the Connecticut Center for Digital Investigations, with the assistance of the Hudson (Mass.) Police Department. The case was prosecuted by Assistant U.S. Attorneys Nancy V. Gifford and 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.
Wheeling woman sentenced to five years for cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Rebecca Mae Blake, age 41, of Wheeling, West Virginia, was sentenced today to five years in federal prison for cocaine distribution.
According to court documents and statements made in court, Blake sold crack cocaine from her home on Fulton Street in Wheeling. Blake pled guilty to the charge earlier this year in connection to a larger drug operation in Ohio County led by Rocco Pandoli, also of Wheeling.
Blake has multiple prior felony drug convictions, to include a conviction in federal court for cocaine distribution in 2005, and three convictions in Ohio County (W.Va.) Circuit Court in 2017, also for cocaine distribution.
Pandoli was convicted earlier this year and sentenced to 51 months in prison.
The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated. This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.
Assistant U.S. Attorney Carly Nogay prosecuted the case on behalf of the government.
U.S. District Judge John Preston Bailey presided.
Wheeling man sentenced for federal fentanyl chargeRead the Press Release
WHEELING, WEST VIRGINIA –Rashun Rafael Suncar, also known as “Blackie,” age 37, of Wheeling, West Virginia, was sentenced to 92 months for distribution of fentanyl.
According to court documents and statements made in court, Suncar sold pills counterfeit pills containing fentanyl near the Elks Playground in East Wheeling. Investigators searched Suncar’s residence and found additional drugs along with a 9mm Taurus pistol.
The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
Assistant U.S. Attorney Carly Nogay prosecuted the case on behalf of the government.
U.S. District Judge John Preston Bailey presided.
West Palm Beach Man Sentenced to 71 Months in Prison on Money Laundering, Gambling, Prostitution, and Tax Evasion ChargesRead the Press Release
MIAMI — On Dec. 6, Dion De Cesare, 54, of West Palm Beach, Florida was sentenced to 71 months in prison for operating an illegal sports gambling business, conspiring to commit money laundering, using a facility of interstate commerce to carry on prostitution activities, and tax evasion. As part of his sentence, U.S. District Court Judge Robin L. Rosenberg ordered De Cesare to pay restitution to the IRS in the amount of $$1,046,224.19.The Government is seeking approximately $10,000,000 in the forfeiture of numerous items and money, including two residential properties, two commercial properties, a storage facility, five condos, six vehicles, and a Rolex watch. The Court will hold a forfeiture hearing at a later date.
In a previous hearing before U.S. Magistrate Judge Bruce E. Reinhart, De Cesare admitted that from around April 2008 to November 2022, he owned two social clubs: Whispers All Girls Staff and NXT. During various times, the businesses provided an array of prostitution services to its customers. De Cesare collected the proceeds from those businesses and laundered them through third party bank accounts and the payment of mortgages and expenses owed on several of his properties in West Palm Beach.
De Cesare also admitted that from about May 20, 2015 to October 2022, De Cesare also operated an online sports gambling business through a website whose server was located in Costa Rica. De Cesare laundered the gambling proceeds by having the gamblers send their debt payments to third party individuals and entities for De Cesare’s benefit. From 2011 to 2017, De Cesare owned Renegades, a restaurant and nightclub in West Palm Beach. From various times between 2011 and 2013, and from 2015 to 2016, De Cesare failed to pay personal and payroll taxes.
U.S Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami; Sheriff Ric Bradshaw of Palm Beach County Sheriff’s Office (PBSO); and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
HSI West Palm Beach Office, PBSO, and IRS-CI investigated the case. Assistant U.S. Attorney Mark Dispoto and Trial Attorney Francesca Bartolomey of the Justice Department’s Tax Division are prosecuting it. Assistant U.S. Attorneys Nicole Grosnoff and Raemy Charest-Turken are handling asset forfeiture.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 21-cr-80188.
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Wedgefield Man Sentenced to 12 Years in Federal PrisonRead the Press Release
COLUMBIA, S.C. — Martez Mandel Coleman, 44, of Wedgefield, was sentenced to a total of 12 years in federal prison yesterday. The sentence consists of 120 months for charges of felon in possession of a firearm and ammunition and possession with intent to distribute 40 grams or more of fentanyl and a quantity of marijuana stemming from an incident in Oct. 2022. Coleman also had 24 months revoked on his supervised release stemming from a 2001 federal murder conviction.
Evidence presented to the court showed that on the evening of Oct. 10, 2022, a deputy with the Sumter County Sheriff’s Office conducted a traffic stop of a Mercedes after observing a traffic violation. When the deputy approached the vehicle, he smelled marijuana and observed a baggy of what he believed to be illegal narcotics on the center console. Coleman, the sole occupant of the vehicle, admitted to having marijuana and a firearm in the vehicle. Deputies recovered a loaded 9mm handgun and several baggies of fentanyl and marijuana inside the vehicle. A drug analysis later showed that it was approximately 126 grams of fentanyl and approximately 47 grams of marijuana in the baggies. The investigation revealed the firearm as having been previously reported as stolen in Florence.
Coleman is prohibited from possessing firearms and ammunition based upon his 2001 federal convictions for murder in relation to felony drug offense, conspiracy to possess with intent to distribute and distribution of 50 grams or more of crack cocaine and five kilograms or more of cocaine, possession with intent to distribute/distribution of crack cocaine, using/carrying a firearm during and in relation to drug trafficking crime, and causing death of a person through use of firearm. After being convicted following a jury trial, he was sentenced to life imprisonment. Later Coleman filed a motion for a reduced sentence pursuant to the First Step Act of 2018. The court reduced his sentence in 2020 to 300 months imprisonment with five years of supervised release. Coleman was released from federal prison in 2021 and was on federal supervised release at the time of the Oct. 2022 incident. Therefore, in addition to the new charges, Coleman faced a revocation of that federal supervised release.
Senior United States District Judge Joseph F. Anderson, Jr. imposed both the sentence and revocation. The Court ran 12 months of the 24-month revocation concurrent to the 120 months sentence and the other 12 months consecutive to that 120-month sentence. Upon completing the total terms of imprisonment, Coleman will be on supervised release for eight years.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Drug Enforcement Administration, Sumter County Sheriff’s Office, and the South Carolina State Law Enforcement Division. Assistant U.S. Attorney Stacey D. Haynes prosecuted the case, as well as Coleman’s earlier 2001 case.
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U.S. Attorney’s Office Hosts Faith Leaders Forum as Part of Department of Justice’s United Against Hate InitiativeRead the Press Release
Philadelphia, PA – On Thursday, December 7, 2023, the United States Attorney’s Office for the Eastern District of Pennsylvania hosted faith leaders from across the region at the National Constitution Center to learn about resources for protecting houses of worship and preventing acts of hate, United States Attorney Jacqueline C. Romero announced today.
Church, mosque, synagogue, and temple leaders met with members of federal, state, and local law enforcement agencies to learn how federal and state laws are used to prosecute people who harm or threaten places of worship and their congregants, understand how and when to report acts of religious violence and discrimination, and get the resources and build the connections needed to combat and prevent acts of hate. U.S. Attorney Romero hosted the forum as part of the Department of Justice’s United Against Hate initiative.
“With religious-based violence and threats of violence on the rise across the country, our partnerships with our faith and other community leaders are essential,” said U.S. Attorney Romero. “Our ability to prosecute hate crimes to the fullest extent of the law depends on members of the community being willing to report acts of hate to our law enforcement partners for investigation. And one of the best ways to prevent crime fueled by religious bias is to be sure faith-based leaders have the information and resources they need to help protect their places of worship and their congregations, and help them forge connections with their fellow community leaders and law enforcement to help make our communities stronger than hate. That’s what our United Against Hate initiative, and today’s event, are all about.”
U.S. Attorney Romero was joined at the event by Kate McGowan, Supervisory Special Agent at the Federal Bureau of Investigation, Charles Phillips, Regional Director of the U.S. Department of Justice Community Relations Service, and representatives from the U.S. Department of Homeland Security and the Pennsylvania Attorney General’s Office of Civil Rights. Members of the Pennsylvania State Police, the Philadelphia Police Department, and the Philadelphia Commission on Human Relations were also in attendance and shared remarks.
The United Against Hate initiative will continue well into the new year, U.S. Attorney Romero confirmed. “I will continue to meet with groups concerned about hate-motivated attacks and discrimination, and to work with these groups and our law enforcement partners to build the strong, safe, and resilient communities that people of all backgrounds—religious and otherwise—deserve,” she said.
If you have information about a possible threat to a place of worship or believe you are a victim of or a witness to a hate crime, contact your local law enforcement agency (911), then the FBI at tips.fbi.gov or 1-800-CALL-FBI. You can also report a hate crime, find resources, and learn more about the Department of Justice’s hate crimes prevention and enforcement work by visiting www.justice.gov/hatecrimes. Additional resources for houses of worship are available at www.cisa.gov.
U.S. Attorney Leary Joins Local, State and Federal Law Enforcement Leaders to Announce Project Safe Neighborhoods Efforts in 2023Read the Press Release
VALDOSTA, Ga. – The U.S Attorney for the Middle District of Georgia joined with local, state and federal law enforcement leaders at the Historic Lowndes County Courthouse this afternoon to discuss Project Safe Neighborhoods (PSN) cases targeting convicted felons caught reoffending while armed and crime prevention efforts.
There are currently 129 active cases involving firearms and violent crime offenses in the Middle District of Georgia. This calendar year to date, 29 PSN cases have been indicted in the Valdosta Division, which encompasses Berrien, Brooks, Clinch, Colquitt, Cook, Echols, Irwin, Lanier, Lowndes, Thomas and Tift counties. These law enforcement actions have removed firearms from the streets—including machine guns and firearm conversion devices known as “switches” that can turn handguns and semi-automatic weapons into a machine gun, allowing it to fire without repeatedly pulling the trigger.
“Reducing violent crime in Valdosta and across the District is the top goal of every law enforcement agency and community stakeholder involved with Project Safe Neighborhoods,” said U.S. Attorney Peter D. Leary. “These cases involve repeat reoffenders who are illegally armed. It’s a dangerous task our law enforcement partners take up every day, and we are thankful to them for their unyielding commitment to making our communities safer.”
“The FBI is actively working with our law enforcement partners to get violent repeat offenders off the streets,” said FBI Supervisory Senior Resident Agent Rich Bilson. “To the repeat convicted felons, drug dealers and others out there hurting our neighbors: Be warned, we are a team, we are prepared for this fight, and you will lose your battle to run our streets, spreading your violence and deadly drugs in our community.”
“Law enforcement at every level is united in the singular goal to make our communities safer and reduce violent crime,” said Assistant Special Agent in Charge Beau Kolodka. “Under Project Safe Neighborhoods, ATF stands together with all of our partner agencies and the communities we serve with a laser-sharp focus on the most urgent violent crime problems.”
“The GBI is proud to continue to work with our local and federal partners to keep our communities safe and seek justice for these crime victims,” said Special Agent in Charge Jamy Steinberg of GBI Region 9 – Thomasville Field Office. “We have enjoyed long standing relationships with the FBI, the U.S. Attorney’s Office for the Middle District of Georgia, the Lowndes County Sheriff’s Office, the Valdosta Police Department and our other law enforcement partners across the District. We expect these long-established relationships to last well into the future to continue to combat crime in the South Georgia area.”
“Project Safe Neighborhoods has allowed our office to make progress in adjudicating cases charging convicted felons with illegal possession of firearms,” said Southern Judicial Circuit District Attorney Brad Shealy. “This year, 31 defendants from the Southern Judicial Circuit have been sentenced federally under PSN, receiving lengthy sentences without parole. Every month, the Valdosta PSN Task Force looks at approximately 20 cases to bring to PSN. Together, we can bring to justice our most violent, repeat offenders.”
“We are thankful for the relationships we maintain with federal, state and local law enforcement under Project Safe Neighborhoods to help get violent, repeat criminals off the streets,” said Lowndes County Sheriff Ashley Paulk. “It has been a fantastic collaboration in Lowndes County.”
“We are grateful for the partnership that we have with the U.S Attorney’s Office and the FBI with Project Safe Neighborhoods,” said Valdosta Police Chief Leslie Manahan. “Because of the efforts of everyone working together, numerous firearms and dangerous convicted felons have been removed from our community. “
Violent crime prevention efforts are a critical component of Project Safe Neighborhoods. PSN community outreach efforts this calendar year include regular PSN Task Force meetings in Valdosta and cities across the District; grant support and implementation of the Credible Messengers program in the Middle District of Georgia which provides mentors for young people in the Georgia Juvenile Justice system; educational training for law enforcement and community members on relevant safety and policing topics, including upcoming PSN Firearms and Narcotics trainings for law enforcement in Valdosta, Albany, Columbus, Warner Robins and Athens; and participation in Night to Unite and similar community building activities across the District. For more information on PSN, please visit: https://www.justice.gov/psn.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. This evidence-based program has proven to be effective at reducing violent crime by engaging a broad spectrum of stakeholders working together to identify the most pressing violent crime problems in communities and developing comprehensive solutions that reduce crime. As part of this strategy, PSN focuses on prevention and intervention efforts through community engagement and problem-solving partnerships, strategic enforcement of the most violent offenders and locally based reentry programs to reduce recidivism.
Two Russian Nationals Working with Russia’s Federal Security Service Charged with Global Computer Intrusion CampaignRead the Press Release
A federal grand jury in San Francisco returned an indictment on Tuesday charging two individuals with a campaign to hack into computer networks in the United States, the United Kingdom, other North Atlantic Treaty Organization member countries and Ukraine, all on behalf of the Russian government.
According to court documents, Ruslan Aleksandrovich Peretyatko (Перетятько Руслан Александрович), an officer in Russia’s Federal Security Service (FSB) Center 18, Andrey Stanislavovich Korinets (Коринец Андрей Станиславович) and other unindicted conspirators employed a sophisticated spear phishing campaign to gain unauthorized, persistent access (i.e., “hack”) into victims’ computers and email accounts.
“The Russian government continues to target the critical networks of the United States and our partners, as highlighted by the indictment unsealed today,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Through this malign influence activity directed at the democratic processes of the United Kingdom, Russia again demonstrates its commitment to using weaponized campaigns of cyber espionage against such networks in unacceptable ways. The Department of Justice will respond to such behavior with an even more determined commitment to disrupt those activities and to hold accountable the individuals responsible.”
“Today’s indictment is part of a coordinated international response to send a message to the conspirators that the whole of the United States government stands together and with our partners internationally to identify and disrupt cyber espionage actors, particularly those seeking to obtain government information and attempting to create chaos in democratic processes,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “We are grateful to all of our partners for their assistance in addressing these threats posed by the FSB’s action in the Northern District of California, across the United States and around the world.”
“The FBI will not stand idly by as Russia continues to perpetuate this type of targeted malicious activity,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “Russian interference through malign foreign influence campaigns is deplorable, and we will not tolerate it in the United States or directed against our foreign partners. The FBI is dedicated to combating this pervasive threat and will tirelessly seek to prevent and disrupt these criminal acts carried out by Russia.”
The indictment, which was unsealed today, alleges the conspiracy targeted current and former employees of the U.S. Intelligence Community, Department of Defense, Department of State, defense contractors, and Department of Energy facilities between at least October 2016 and October 2022. In addition, the indictment alleges the conspirators – known publicly by the name “Callisto Group” – targeted military and government officials, think tank researchers and staff, and journalists in the United Kingdom and elsewhere, and that information from certain of these targeted accounts was leaked to the press in Russia and the United Kingdom in advance of U.K. elections in 2019.
As a common example, the conspirators used “spoofed” email accounts designed to look like personal and work-related email accounts of the group’s targets. The conspirators allegedly also sent sophisticated looking emails that appeared to be from email providers suggesting users had violated terms of service. These messages were designed to trick victims into providing their email account credentials to false login prompts. Once the conspirators fraudulently obtained the victim’s credentials, they were able to use those credentials to access the victims’ email accounts at will.
In addition to the indictment, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that it has sanctioned both Peretyatko and Korinets for their roles in malicious cyber-enabled activity. Moreover, the United Kingdom has issued sanctions of its own, and the U.S. Department of State announced rewards of up to $10 million for information leading to the identification or location of Peretyatko and Korinets, as well as their conspirators.
In addition to the name “Callisto Group,” FSB Center 18 is known by cybersecurity investigators as “Dancing Salome” by Kaspersky Labs, “STAR BLIZZARD” by Microsoft Threat Intelligence Center and “COLDRIVER” by Google’s Threat Analysis Group.
The defendants are each charged with one count of conspiracy to commit an offense against the United States, namely, computer fraud, which carries a maximum sentence of five years in prison for PERETYATKO, and up to 10 years for KORINETS. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the assigned judge.
The investigation was conducted jointly by the U.S. Attorney’s Office for the Northern District of California, the National Security Cyber Section of the Justice Department’s National Security Division and the FBI San Francisco Field Office. The FBI’s Cyber Division, Cyber Assistant Legal Attachés, and Legal Attachés in countries around the world provided essential support. Numerous victims cooperated and provided valuable assistance in the investigation.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Note: This release has been updated to reflect the correct criminal offense and statutory penalties.
Peretyatko Korinets indictmentTwo Russian Nationals Working with Russia’s Federal Security Service Charged with Global Computer Intrusion CampaignRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco returned an indictment on Tuesday charging two individuals with a campaign to hack into computer networks in the United States, the United Kingdom, other North Atlantic Treaty Organization member countries and Ukraine, all on behalf of the Russian government.
According to court documents, Ruslan Aleksandrovich Peretyatko (Перетятько Руслан Александрович), an officer in Russia’s Federal Security Service (FSB) Center 18, Andrey Stanislavovich Korinets (Коринец Андрей Станиславович) and other unindicted conspirators employed a sophisticated spear phishing campaign to gain unauthorized, persistent access (i.e., “hack”) into victims’ computers and email accounts.
“The Russian government continues to target the critical networks of the United States and our partners, as highlighted by the indictment unsealed today,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Through this malign influence activity directed at the democratic processes of the United Kingdom, Russia again demonstrates its commitment to using weaponized campaigns of cyber espionage against such networks in unacceptable ways. The Department of Justice will respond to such behavior with an even more determined commitment to disrupt those activities and to hold accountable the individuals responsible.”
“Today’s indictment is part of a coordinated international response to send a message to the conspirators that the whole of the United States government stands together and with our partners internationally to identify and disrupt cyber espionage actors, particularly those seeking to obtain government information and attempting to create chaos in democratic processes,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “We are grateful to all of our partners for their assistance in addressing these threats posed by the FSB’s action in the Northern District of California, across the United States and around the world.”
“The FBI will not stand idly by as Russia continues to perpetuate this type of targeted malicious activity,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “Russian interference through malign foreign influence campaigns is deplorable, and we will not tolerate it in the United States or directed against our foreign partners. The FBI is dedicated to combating this pervasive threat and will tirelessly seek to prevent and disrupt these criminal acts carried out by Russia.”
“Countering the persistent threat to critical infrastructure posed by state-sponsored Russian cybercriminals remains a top priority for the FBI,” said FBI San Francisco Division Special Agent in Charge Robert Tripp. “Today’s charging announcement underscores the FBI’s commitment to collaborate with our U.S. and international partners to disrupt these activities. We will identify those responsible and hold them accountable.”
The indictment, which was unsealed today, alleges the conspiracy targeted current and former employees of the U.S. Intelligence Community, Department of Defense, Department of State, defense contractors, and Department of Energy facilities between at least October 2016 and October 2022. In addition, the indictment alleges the conspirators – known publicly by the name “Callisto Group” – targeted military and government officials, think tank researchers and staff, and journalists in the United Kingdom and elsewhere, and that information from certain of these targeted accounts was leaked to the press in Russia and the United Kingdom in advance of U.K. elections in 2019.
As a common example, the conspirators used “spoofed” email accounts designed to look like personal and work-related email accounts of the group’s targets. The conspirators allegedly also sent sophisticated looking emails that appeared to be from email providers suggesting users had violated terms of service. These messages were designed to trick victims into providing their email account credentials to false login prompts. Once the conspirators fraudulently obtained the victim’s credentials, they were able to use those credentials to access the victims’ email accounts at will.
In addition to the indictment, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that it has sanctioned both Peretyatko and Korinets for their roles in malicious cyber-enabled activity. Moreover, the United Kingdom has issued sanctions of its own, and the U.S. Department of State announced rewards of up to $10 million for information leading to the identification or location of Peretyatko and Korinets, as well as their conspirators.
In addition to the name “Callisto Group,” FSB Center 18 is known by cybersecurity investigators as “Dancing Salome” by Kaspersky Labs, “STAR BLIZZARD” by Microsoft Threat Intelligence Center and “COLDRIVER” by Google’s Threat Analysis Group.
The defendants are each charged with one count of conspiracy to commit an offense against the United States, namely, computer fraud, which carries a maximum sentence of five years in prison for PERETYATKO, and up to 10 years for KORINETS. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the assigned judge.
The investigation was conducted jointly by the U.S. Attorney’s Office for the Northern District of California, the National Security Cyber Section of the Justice Department’s National Security Division and the FBI San Francisco Field Office. The FBI’s Cyber Division, Cyber Assistant Legal Attachés, and Legal Attachés in countries around the world provided essential support. Numerous victims cooperated and provided valuable assistance in the investigation.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
indictment.pdfTobyhanna Man Sentenced to 72 Months’ Imprisonment for Heroin, Fentanyl and Cocaine TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Darius Jamal Scott, age 46, of Tobyhanna, PA, was sentenced on December 7, 2023, by United States District Judge Robert D. Mariani, to 72 months’ imprisonment, to be followed by a 4-year period of supervised release, for heroin, fentanyl and cocaine trafficking.
According to United States Attorney Gerard M. Karam, from approximately April 2022 until June 15, 2022, Scott conspired with others to distribute and did distribute over 40 grams of a mixture of heroin and fentanyl, as well as over 100 grams of cocaine, in Tobyhanna and surrounding areas in Monroe County, PA. Scott was out on state parole for a prior handgun offense at the time of his commission of this federal narcotics offense. At his sentencing, Judge Mariani ordered that Scott’s 72-month federal sentence run consecutively to the 24-month sentence that Scott received for his parole violation.
“This investigation demonstrates HSI’s commitment to identifying the most determined recidivists that peddle poison and prey on the most vulnerable,” said Special Agent in Charge of HSI Philadelphia William S. Walker. “HSI will leverage every resource and partnership, especially our outstanding collaboration with the PA Office of the Attorney General - Bureau of Narcotics Investigations, to rid our communities of the drug traffickers that plaque them.”
This matter was investigated by Homeland Security Investigations (HSI) and the Pennsylvania Office of the Attorney General’s Bureau of Narcotics Investigations (BNI). Assistant United States Attorney Jeffery St John prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Three Men Indicted for Environmental Crimes Committed in the Jobos Bay National Estuarine Research Reserve and Las Mareas Community of Salinas, Puerto RicoRead the Press Release
A federal grand jury in the District of Puerto Rico returned two separate indictments yesterday charging three individuals for violations of the Clean Water Act. The charges relate to the illegal construction and deposit of material into the wetlands and waters of the United States in the Jobos Bay National Estuarine Research Reserve (Jobos Estuarine Reserve).
Various federal agencies are involved in this ongoing investigation into environmental crimes in the Jobos Estuarine Reserve and Las Mareas community as part of the Caribbean Environmental Crimes Task Force, including the Environmental Protection Agency Criminal Investigation Division (EPA-CID), FBI, U.S. Department of the Army Criminal Investigation Division (Army-CID), U.S. Department of Commerce, Office of Inspector General (DOC-OIG), National Oceanic and Atmospheric Administration Office of Law Enforcement (NOAA-OLE) and U.S. Fish and Wildlife Service Office of Law Enforcement (FW‑OLE).
According to the first indictment, from June 2018 to December 2023, Rafael Carballo-Díaz and Nathaniel Hernández-Claudio knowingly discharged fill material from excavation and earth moving equipment into the wetlands and waters of the United States in violation of the Clean Water Act. Carballo-Díaz operated a guesthouse business called El Cacique Resort on the property located at the southwest of Camino del Indio in the Las Mareas area of Salinas, Puerto Rico. Hernández-Claudio acted as a host and property manager at El Cacique Resort on the Property.
The second indictment charges Awildo Jiménez-Mercado with violations of the Clean Water Act and the Rivers and Harbors Act. Jiménez-Mercado knowingly discharged fill material from excavation and earth moving equipment into the wetlands and built a boat dock without authorization of the Secretary of the Army, in violation of the Rivers and Harbors Act. Jiménez-Mercado also operated a guest house business called “Hidden Paradise” on a separate property. Both El Cacique Resort and Hidden Paradise offered guests a pool, outdoor dining areas and housing units as short-term rentals.
The Clean Water Act was enacted by Congress in 1972 to protect and maintain the integrity of the waters of the United States. The Clean Water Act’s main purpose is to ensure the restoration and maintenance of the chemical, physical and biological integrity of the nation’s waters. It prohibits the discharge of any pollutant and fill material into waters of the United States except when a permit is obtained from the United States.
The Rivers and Harbors Act was originally enacted in 1899 and is generally considered the oldest environmental law in the United States. It serves to regulate and protect the navigable waters of the United States and prohibits the unpermitted construction of structures within those waters.
Both the Clean Water Act and the Rivers and Harbors Act protect the coastal waters within the Jobos Estuarine Reserve.
The Jobos Estuarine Reserve was designated as a National Estuarine Research Reserve by the National Oceanic and Atmospheric Administration (NOAA) in 1981 and is comprised of approximately 2,800 acres of coastal ecosystems in the southern coastal plain of Puerto Rico. The Jobos Estuarine Reserve contains mangrove islands, mangrove forests, tidal wetlands, coral reefs, lagoons, salt flats, dry forest and seagrass beds. It is also home to the endangered brown pelican, peregrine falcon, hawksbill turtle and West Indian manatee. The Jobos Estuarine Reserve is owned and operated by the Puerto Rico Department of Natural and Environmental Resources (PR‑DNER).
The three defendants were arrested and are scheduled to appear today before Magistrate Judge Marshal D. Morgan of the U.S. District Court for the District of Puerto Rico for their respective initial appearances. If convicted, the defendants are facing up to three years in prison for the Clean Water Act violations, fines and injunctive relief to remove violating structures. Jimenez-Mercado is also facing a maximum penalty of one year in prison for the River and Harbors Act violations.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) and U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico made the announcement.
Senior Trial Attorney Patrick M. Duggan of ENRD’s Environmental Crimes Section and Environmental Litigation Coordinator and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.
These indictments are part of an ongoing investigation that includes two indictments returned in May 2023. If you have any information related to this investigation or environmental crimes in the area, please contact enforcement officials, which may be done anonymously. The EPA can be contacted at (787) 977-5821 or at echo.epa.gov/denuncie-violaciones-ambientales. The FBI can be contacted at (787) 987-6500 or tips.fbi.gov/.
For more information on the Jobos Bay National Estuarine Reserve, please visit www.drna.pr.gov/jbnerr/ or coast.noaa.gov/nerrs/reserves/jobos-bay.html.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Men Indicted for Environmental Crimes Committed in the Jobos Bay National Estuarine Research Reserve and Las Mareas Community of Salinas, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On December 6, 2023, a Federal Grand Jury in the District of Puerto Rico returned two separate indictments charging three individuals for violations of the Clean Water Act. The charges relate to the illegal construction and deposit of material into the wetlands and waters of the United States in the Jobos Bay National Estuarine Research Reserve (the “Jobos Estuarine Reserve”).
Various federal agencies are involved in this ongoing investigation into environmental crimes in the Jobos Estuarine Reserve and Las Mareas community as part of the Caribbean Environmental Crimes Task Force, including the Environmental Protection Agency Criminal Investigation Division (EPA-CID), Federal Bureau of Investigation (FBI), U.S. Department of the Army Criminal Investigation Division (Army-CID), U.S. Department of Commerce, Office of Inspector General (DOC-OIG), National Oceanic & Atmospheric Administration Office of Law Enforcement (NOAA-OLE), and U.S. Fish and Wildlife Service Office of Law Enforcement (FW‑OLE).
According to the first indictment, from June 2018 to December 2023, Rafael Carballo-Díaz and Nathaniel Hernández-Claudio knowingly discharged fill material from excavation and earth moving equipment into the wetlands and waters of the United States in violation of the Clean Water Act. Carballo-Díaz operated a guesthouse business called El Cacique Resort on the property located at the Southwest of Camino del Indio in the Las Mareas area of Salinas, Puerto Rico. Nathaniel Hernández-Claudio acted as a host and property manager at El Cacique Resort on the Property.
The second indictment charges Awildo Jiménez-Mercado with violations of the Clean Water Act and the Rivers and Harbors Act. Jiménez-Mercado knowingly discharged fill material from excavation and earth moving equipment into the wetlands and built a boat dock without authorization of the Secretary of the Army, in violation of the Rivers and Harbors Act.
Awildo Jiménez-Mercado also operated a guest house business called “Hidden Paradise” on a separate property. Both El Cacique Resort and Hidden Paradise offered guests a pool, outdoor dining areas, and housing units as short-term rentals.
The Clean Water Act was enacted by Congress in 1972 to protect and maintain the integrity of the waters of the United States. The Clean Water Act’s main purpose is to ensure the restoration and maintenance of the chemical, physical, and biological integrity of the nation’s waters. It prohibits the discharge of any pollutant and fill material into waters of the United States except when a permit is obtained from the United States.
The Rivers and Harbors Act was originally enacted in 1899 and is generally considered the oldest environmental law in the United States. It serves to regulate and protect the navigable waters of the United States and prohibits the un-permitted construction of structures within those waters.
Both the Clean Water Act and the Rivers and Harbors Act protect the coastal waters within the Jobos Estuarine Reserve.
The Jobos Estuarine Reserve was designated as a National Estuarine Research Reserve by the National Oceanic and Atmospheric Administration (NOAA) in 1981 and is comprised of approximately 2,800 acres of coastal ecosystems in the Southern coastal plain of Puerto Rico. The Jobos Estuarine Reserve contains mangrove islands, mangrove forests, tidal wetlands, coral reefs, lagoons, salt flats, dry forest, and seagrass beds. It is also home to the endangered brown pelican, peregrine falcon, hawksbill turtle, and West Indian manatee. The Jobos Estuarine Reserve is owned and operated by the Puerto Rico Department of Natural and Environmental Resources (PR‑DNER).
The three defendants were arrested and are scheduled to appear today before Magistrate Judge Marshal D. Morgan of the U.S. District Court for the District of Puerto Rico for their respective initial appearances. If convicted, the defendants are facing up to three years of imprisonment for the Clean Water Act violations, fines, and injunctive relief to remove violative structures. Jimenez-Mercado is also facing one year in prison for the River and Harbors Act violations.
W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico, and Todd Kim, Assistant Attorney General of the Environment and Natural Resources Division of the U.S. Department of Justice made the announcement.
The case is being prosecuted by Senior Trial Attorney Patrick M. Duggan of the Environmental Crimes Section of the U.S. Department of Justice and Assistant U.S. Attorney Seth A. Erbe, Environmental Litigation Coordinator for the U.S. Attorney’s Office for the District of Puerto Rico.
These indictments are part of an ongoing investigation that include two indictments returned in May 2023. See https://www.justice.gov/usao-pr/pr/two-men-indicted-environmental-crimes-committed-jobos-bay-national-estuarine-research.
If you have any information related to this investigation or environmental crimes in the area, please contact enforcement officials, which may be done anonymously. The EPA can be contacted at (787) 977-5821 or at https://echo.epa.gov/denuncie-violaciones-ambientales. The FBI can be contacted at (787) 987-6500 or https://tips.fbi.gov/.
For more information on the Jobos Bay National Estuarine Reserve, please visit https://www.drna.pr.gov/jbnerr/ or https://coast.noaa.gov/nerrs/reserves/jobos-bay.html.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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23-441_gmm_indict_redacted.pdf 23-440_fab_indict_redacted.pdfTen indicted on federal charges in Augusta-area meth-trafficking operationRead the Press Release
AUGUSTA, GA: Ten defendants in the Augusta area have been indicted on federal charges for participating in a major methamphetamine trafficking operation.
The defendants in USA v. Walters et al. all are charged with Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, along with multiple individual charges related to meth possession and distribution and illegal gun possession, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. Conviction on the conspiracy charge carries a statutory penalty of up to 20 years in prison, along with substantial fines and a period of supervised release upon completion of any prison term. There is no parole in the federal system.
“The charges in this indictment succinctly spell out the danger that trafficking in illegal drugs presents to the safety of our communities – particularly when those engaged in drug trafficking also illegally possess weapons,” said U.S. Attorney Steinberg. “We commend the challenging work of our law enforcement partners in identifying and disrupting these operations.”
The recently unsealed indictment charges:
- Edward Jake Walters, a/k/a “State Farm,” a/k/a “Jake from State Farm,” 29, of Grovetown, Ga.;
- Phillip Smith, 49, of Augusta;
- Dustin Bayles, 35, of Thomson, Ga.;
- Glen Taylor, 42, of Beech Island, S.C.;
- Linda Campbell, 52, of Augusta;
- Joshua Wasden, 35, of Thomson, Ga.;
- Brian Hilliard, 40, of Augusta;
- Gary Holcomb, 59, of Martinez, Ga.;
- Donnie Skillman, 46, of Augusta; and,
- Destiny Poole, 23, of Grovetown, Ga.
Each defendant has appeared in U.S. Magistrate Court for initial hearings and await further proceedings. Indictments contain only charges; defendants are considered innocent unless and until proven guilty.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
The case was investigated by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Georgia Bureau of Investigation; the Aiken County Sheriff’s Office; the Columbia County Sheriff’s Office; the Richmond County Sheriff’s Office; and the McDuffie County Sheriff’s Office; and prosecuted for the United States by Assistant U.S. Attorney Bradley R. Thompson.
Standing Pine Woman Pleads Guilty to Possession with Intent to Distribute over 50 Grams of MethamphetamineRead the Press Release
Jackson, MS – A Standing Pine woman pleaded guilty to possession with intent to distribute over 50 grams of methamphetamine.
According to court documents, on September 9, 2022, Shannen Marie Chapala, 31, distributed over 50 grams of methamphetamine in the Pearl River Community of the Mississippi Band of Choctaw Indians. Chapala was indicted by a federal grand jury in September 2023.
Chapala is scheduled to be sentenced on March 8, 2024, and faces a maximum penalty of twenty years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd Gee, Special Agent in Charge Brad Byerley of the Drug Enforcement Administration, and Regional Agent in Charge Whitney Woodruff of the Bureau of Indian Affairs made the announcement.
The case was investigated by the Choctaw Police Department, the U.S. Department of Interior, Bureau of Indian Affairs, and the Drug Enforcement Administration.
Assistant U.S. Attorney Kevin J. Payne and Special Assistant U.S. Attorney Brian K. Burns prosecuted the case.
St. Louis Man Accused of Nearly $600,000 Pandemic FraudRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri has been accused in an indictment of fraudulently obtaining nearly $600,000 in pandemic relief loans.
Shahron Vaulx, 39, was indicted Wednesday in U.S. District Court in St. Louis on six counts of bank fraud and two counts of wire fraud. He appeared in court Thursday and pleaded not guilty.
The indictment accuses Vaulx of submitting nine fraudulent applications seeking a total of $649,000 in Paycheck Protection Program (PPP) loans and receiving about $595,000.
Vaulx made the applications on behalf of Fortunnett Financial LLC, SD Incorporation LLC, SV Collections LLC and SD Marketing LLC, the indictment alleges. The applications contained false information about monthly payroll and the number of company employees and was sometimes supported by fraudulent or misleading tax forms, the indictment says. Vaulx made bulk cash withdrawals and sent money to others and used other funds on unapproved personal expenses including personal credit card bills, clothing, advertisements and payments to OnlyFans, the indictment says.
The PPP loans were intended to help small businesses and their employees during the COVID-19 pandemic.
The bank fraud and wire fraud charges are each punishable by up to 30 years in prison, a $1 million fine, or both.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The U.S. Secret Service investigated the case. Assistant U.S. Attorney Stephen Casey is prosecuting the case.
St. Louis County Man Admits Federal Gun CrimeRead the Press Release
ST. LOUIS– A man who admitted tampering with a witness with information about a fatal hit-and-run in St. Louis pleaded guilty Thursday to a federal gun charge.
Martez D. Lindsey, 31, of St. Louis County, Missouri, pleaded guilty Thursday to being a felon in possession of a firearm. Lindsey admitted as part of his plea that while investigating a fatal hit-and-run, detectives performed a court-approved search of Lindsey’s apartment on April 25, 2023. In Lindsey’s bedroom, they found a stolen Taurus G3 pistol, .53 grams of cocaine base, .33 grams of methamphetamine, 1.14 grams of marijuana, a digital scale and $1,370 in cash. Lindsey admitted knowing that, as someone convicted of multiple felonies, he was barred from possessing a firearm.
In an attempt to avoid detention in jail after his arrest on the federal charge, Lindsey contacted a key witness in the hit-and-run investigation and pressured her to recant her original report to police. He wanted her to claim she was tricked or made up a story because she was mad at him, the plea agreement says. Lindsey believed her statement was the “only proof they got,” the plea says. The witness was an ex-girlfriend and Lindsey previously had thrown a brick through the rear window of a vehicle she owned and tossed in a firework that destroyed the front window, the plea says.
Lindsey is scheduled to be sentenced March 13, 2024. The charge carries a potential penalty of up to 15 years in prison, a $250,000 fine, or both prison and a fine.
The St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Zachary Bluestone is prosecuting the case.
South Los Angeles Man Sentenced to Life in Prison for Recruiting Teenage Girls for Commercial Sex Work and Sex Trafficking an AdultRead the Press Release
LOS ANGELES – A South Los Angeles man was sentenced today to life in federal prison for recruiting and enticing teenage girls for whom he acted as a “pimp” and providing them for commercial sex work.
Donavin Dwayne Bradford, 32, was sentenced by United States District Judge John A. Kronstadt, who at today’s hearing described Bradford’s actions as “inexcusable” and “horrific.” Judge Kronstadt also ordered Bradford to pay $67,000 in restitution and an additional $900 in special assessments.
At the conclusion of a five-day trial, a jury on April 17 found Bradford guilty of one count of conspiracy to commit sex trafficking with a minor, three counts of sex trafficking of a minor, three counts of sexual exploitation of a minor for the purpose of producing a sexually explicit visual depiction, one count of possession of child pornography, and one count of sex trafficking through threats of force, fraud, or coercion.
From the summer of 2021 to February 2022, Bradford conspired with Layla Kalani Valdivia, 24, of Ventura, to cause one of the minor victims – a then-15-year-old girl – to be used for commercial sex acts. Bradford recruited the victim to work for him as a commercial sex worker. As the victim’s “pimp,” Bradford expected the girl to earn him $1,000 per night.
Bradford and Valdivia advertised the girl for commercial sex work on various websites, and customers who responded to the ads were directed to various hotels and motels where they engaged in commercial sex acts with the victim. Sometimes the minor victim would be required to perform sex acts with Valdivia and a sex client together. Customers paid Bradford for “dates” with the victim or she would be required to give Bradford or Valdivia her earnings.
Bradford assaulted the minor victim when she tried to stop working for him on two separate occasions. Bradford also filmed himself engaging in sex acts on two separate occasions with her.
From March 2021 to November 2021, Bradford recruited and enticed two other girls – ages 16 and 17 – to engage in commercial sex activity.
From May 2021 to August 2022, Bradford also recruited and sex trafficked an adult victim through threats of force, fraud or coercion, including multiple instances of violence.
Bradford and Valdivia have been in federal custody since August 2022.
“Bradford sex trafficked at least three minor girls and used threats of force and coercion to traffic a young adult – all for his own profit,” prosecutors argued in a sentencing memorandum. “To control his victims, he beat and berated them, pointed a gun in at least one victim’s face, intimidated them by referring to his gang membership, filmed himself having sex with them, took their money, and destroyed their property when they dared to leave him. With at least one victim, he took her earnings from sex customers as well as her financial aid from school.”
Valdivia pleaded guilty in December 2022 to one count of conspiracy to commit sex trafficking of a minor and one count of sex trafficking of a minor and is serving a federal prison sentence.
The FBI Los Angeles Field Office and the FBI Los Angeles Child Exploitation and Human Trafficking Task Force coordinated with multiple law enforcement partners and thanks them for their participation and assistance, including: the Los Angeles Police Department; the Las Vegas Metropolitan Police Department; the Inglewood Police Department; the Pomona Police Department; the Los Angeles County Sheriff’s Department; the Ventura County Sheriff’s Office; the Santa Maria Police Department; the Los Angeles County Department of Children and Family Services; and the National Center for Missing and Exploited Children.
Assistant United States Attorneys Chelsea Norell and Kathy Yu of the Violent and Organized Crime Section prosecuted this case.
“Operation Cross Country,” an FBI-led nationwide effort which ran in August 2022, focused on identifying and locating victims of sex trafficking and investigating and arresting individuals and criminal enterprises involved in both child sex trafficking and human trafficking.
Schuylkill County Man Sentenced to 16 Months’ Imprisonment for Methamphetamine and Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Bartel age 64, of Pottsville, Schuylkill County, was sentenced on December 7, 2023, by U.S. District Court Judge Malachy E. Mannion, to 16 months’ imprisonment on the charge of possession with intent to distribute methamphetamine and fentanyl.
According to United States Attorney Gerard M. Karam, Bartel previously pleaded guilty and admitted to possessing methamphetamine and fentanyl for further distribution. The charge stems from an investigation in which the Pennsylvania State Police made a traffic stop of a vehicle Bartel was driving on August 3, 2022, in Pottsville, and seized approximately 55 grams of methamphetamine, 1,371 packets of fentanyl and $1,974 in U.S. currency. Bartel was the sole occupant of the vehicle.
The charge against the defendant resulted from an investigation conducted by the Pennsylvania State Police and the Federal Bureau of Investigation’s Safe Streets Task Force. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Rush City Woman Sentenced to Prison for Role in $1.8 Million Scheme Involving Romance Fraud and Federal Pandemic ProgramsRead the Press Release
MINNEAPOLIS – A Rush City woman has been sentenced to 21 months in federal prison, followed by two years of supervised release, 100 hours of community service, and was ordered to pay $1.7 million in restitution for her role in multiple schemes that defrauded individuals throughout the United States, announced U.S. Attorney Andrew M. Luger.
According to court documents, from 2017 through April 2022, Gayle Joyce Ferngren, 70, and others participated in a scheme to launder proceeds that were fraudulently obtained from victims throughout the United States, including the proceeds of romance fraud scams and schemes to defraud Federal Pandemic Assistance Programs. In total, Ferngren laundered at least $1.8 million in fraud proceeds.
According to her guilty plea, from approximately June 2020 through December 2020, Ferngren acknowledges that she received at least 68 debit cards containing approximately $1.3 million in fraudulent unemployment benefits from California and Nevada to which she was not entitled. After receiving the fraudulent proceeds, Ferngren kept a portion for herself and transmitted most of the funds to other scheme participants, including to individuals located overseas.
In addition, Ferngren participated in a “romance scam,” which is a type of fraud that targets persons looking for romantic partners or friendship on dating websites or other social media platforms. According to court documents, romance scammers create profiles using fictitious or fake names, locations, images, and personas, allowing the scammers to cultivate relationships with prospective scam victims. According to her guilty plea, Ferngren received funds from romance fraud victims under false and fraudulent pretenses after other scheme participants induced the victims to send money to Ferngren.
Ferngren was sentenced today in U.S. District Court before Judge John R. Tunheim. On May 22, 2023, she pleaded guilty to one count of mail fraud.
This case is the result of an investigation conducted by the U.S. Postal Inspection Service, the U.S. Department of Labor–Office of Inspector General, and the FBI.
Assistant U.S. Attorney Matthew S. Ebert prosecuted the case.
Rhode Island Man Charged with Making Fake Bomb Threat on AirplaneRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging Evan Sims (41, Rhode Island) with false information and threats regarding the possession of an explosive on an airplane. If convicted, Sims faces a maximum penalty of five years in federal prison.
According to court documents, on December 5, 2023, Sims was traveling on a flight from Orlando to Providence, Rhode Island. While seated on the airplane, prior to takeoff, Sims began arguing with his travel companion. Sims told his travel companion that he had never heard of the airline for the flight and that he hoped the airplane did not “go down.” Sims stated that they would be “gone with the wind.”
During boarding and the airliner safety briefing, Sims made comments to his travel companion about needing to use the emergency doors and that the windows looked like they had not been used. Sims also told his travel companion that he hoped they did not have to use the windows. Further, Sims questioned the flight crew regarding the emergency life raft that was in the overhead storage compartment. Sims’s travel companion and the surrounding passengers were uncomfortable with Sims’s statements and Sims’s travel companion asked Sims to stop making his comments.
As the flight began the initial ascent into the air, Sims partially stood up in his seat and exclaimed that he wanted to get off the plane. While the flight was airborne, Sims stated approximately two times that his travel companion had a bomb on the plane. Thereafter, due to Sims’s repeated disturbances and escalating behavior, the flight was diverted to the Jacksonville International Airport. Bomb-detection dogs searched the plane but did not locate a bomb.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Transportation Security Administration, Jacksonville Aviation Authority Airport Police Department, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Ashley Washington.
Download Criminal ComplaintRevere Man Sentenced to Five Years in Prison for Drug and Firearm PossessionRead the Press Release
BOSTON – A Revere man was sentenced yesterday in federal court in Boston for possessing cocaine and fentanyl as well as receiving a firearm while under indictment for felony charges.
Cesar Rivera, 24, was sentenced by U.S. District Court Judge Richard G. Stearns to five years in prison followed by three years of supervised release. In December 2022, Rivera pleaded guilty to one count of possession with intent to distribute cocaine and fentanyl and one count of receipt of a firearm while under indictment for felony charges.
In December 2020, Rivera was wanted on outstanding warrants on multiple state gun cases for which he had failed to respond to court summonses or appear in court for over a year. On Dec. 22, 2020, Rivera was located at a carwash in Malden and subsequently arrested. At the time of his arrest, Rivera was carrying approximately 28 grams of crack cocaine, fentanyl and a Glock firearm.
In October 2020, two months prior to his arrest, while wanted on the outstanding warrants, Rivera and Phillips Charles had a brief encounter with a rival gang member, his girlfriend and their one-year-old child at the Square One Mall in Saugus. After the encounter, Rivera and Charles pursued the victim and his family and fired at least seven rounds into their vehicle. Following Rivera’s arrest, ballistics examination of the Glock firearm recovered from Rivera in December 2020 revealed that it had been used in the October 2020 shooting.
In September 2022, Charles was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 78 months in prison and four years of supervised release.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; and Malden Police Chief Kevin Molis made the announcement. Valuable assistance was provided by the Massachusetts State Police; the Middlesex County and Suffolk County District Attorney’s Offices; and the Boston Police Department. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Repeat Felon Pleads Guilty to Armed Robbery of Two BusinessesRead the Press Release
BOSTON – A previously convicted felon pleaded guilty yesterday in connection with the armed robberies of two Boston and Brockton businesses in March.
Fernando Bost, 32, of Boston, pleaded guilty to two counts of Hobbs Act robbery and one count of being a felon in possession of a firearm. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 7, 2024. Bost was charged in September 2023.
On March 29, 2023 at approximately 11:05 p.m., a man entered RJ Smoke and Convenience Store in Dorchester, held the victim cashier at gunpoint and took cash before fleeing the store. While investigating the robbery, law enforcement learned that a 7-Eleven in Brockton was robbed approximately 40 minutes earlier that same day. Surveillance footage depicts the robber wearing the same unique clothing worn in the RJ Smoke and Convenience store robbery.
A subsequent investigation identified a Kia Sorento captured in the vicinity of both businesses prior to the robberies and leaving after each robbery took place. Records determined that the vehicle had been rented out to Bost’s girlfriend at the time of the robberies. It was also determined that Bost’s EBT card had been used at a gas station and a Target the same day of the robberies. Surveillance footage obtained from those locations show Bost wearing clothing identical to that worn by the robber.
Bost was arrested during a traffic stop near Springfield where a loaded Glock 43x with a high-capacity magazine was recovered in his sweatshirt.
Bost is prohibited from possessing firearms and ammunition due to two previous armed robbery convictions from 2012 and 2017. Additionally, at the time of the offense, Bost had several pending charges for armed and unarmed robbery as well as three outstanding warrants issued out of three different courts for armed robbery, assault with a dangerous weapon, breaking and entering daytime for felony, receiving stolen property and shoplifting.
The charge of Hobbs Act robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Massachusetts State Police Department; the Hamden County District Attorney’s Office; and the Boston and Brockton Police Departments. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
Real Estate Promoter Pleads Guilty to Defrauding InvestorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ELIEZER TILSON, a real estate promoter based in Israel, pled guilty to violating the Travel Act in connection with his embezzlement of $650,000 in investor funds.
U.S. Attorney Damian Williams said: “Investment fraud, like all financial crimes, has the potential to turn lives upside down and breed distrust in vital economic sectors. Eliezer Tilson took advantage of real estate’s integral role in the U.S. economy, admitting today to defrauding innocent victims who believed their investments were secure when, in fact, their money was being used to pay off debts and other victims. This Office will continue to keep a watchful eye on the markets and prosecute those attempting to deceive the investing public.”
According to the allegations contained in the Information:
In October 2019, TILSON solicited investments from two investors in New York City in an investment fund that focused on multifamily residential real estate projects. The two investors together sent $650,000 to TILSON for investment in the fund. TILSON never transmitted any of the victims' money to the fund. Instead, he used most of the money to pay dividends to other investors in separate, unrelated real estate projects and pay down prior debt incurred by other, unrelated entities.
When the victims first asked why their funds had not arrived at the investment fund, TILSON falsely assured them that the fund had their money. He later told the victims that he had arranged to send their money to the fund by wire transfer but that the wire had not yet gone through. He subsequently sent the victims a document purportedly from his bank showing a balance of more than $800,000 in his account when, in fact, that account was overdrawn. The next day, TILSON sent the victims a purported bank document falsely indicating that he had wired the first victim's money back to him and another purported bank document falsely indicating that his account had a balance of more than $400,000 when the account was overdrawn. TILSON admitted to the victims that he had taken their money a few days later to make other payments.
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TILSON, 37, of Netanya, Israel, pled guilty to one count of violating the Travel Act, which prohibits the use of facilities in interstate and foreign commerce, including wire communications, to carry out unlawful activities such as engaging in monetary transactions in property derived from fraud in the sale of securities. It carries a maximum sentence of five years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
Readout of Justice Department Participation in the 2023 White House Tribal Nations SummitRead the Press Release
Attorney General Merrick B. Garland and other senior Justice Department officials today participated in the 2023 White House Tribal Nations Summit. The summit reiterated the importance of Nation-to-Nation relationships and provided an opportunity for members of the administration to discuss key issues that the Tribal Nations face.
Attorney General Garland provided updates on the Department’s work over the past year on issues unique to Tribal communities and how the Department’s broader work is taking into account Tribal interests. In his remarks, he announced that the U.S. Marshals Service has developed a legislative proposal to formalize its role in enforcing Tribal violent felony arrest warrants, which would expand the practice that the Marshals Service has piloted over the last year to serve Tribal warrants at the request of, and in close coordination with, Tribal law enforcement and the Department’s Office of Tribal Justice. He highlighted how the Department has expanded the Tribal Access Program, supporting 132 Tribes and over 450 Tribal government agencies, and has significantly increased the number of Assistant U.S. Attorneys dedicated to Indian Country prosecutions. He also discussed the Department’s efforts to combat the fentanyl crisis in close coordination with Tribal law enforcement partners. In addition, Attorney General Garland provided an update on the Justice Department’s lawsuit against the owners and operators of a hotel and bar in South Dakota for violating the Civil Rights Act of 1964. And he reaffirmed the Department’s commitment to working alongside Native American communities to fulfill the promise of equal protection under the law.
Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta participated in a Nation-to-Nation Talk with Tribal leaders, along with Assistant Attorney General Todd Kim of the Environment and Natural Resources Division, Director Tracy Toulou of the Office of Tribal Justice, and Acting Principal Deputy Assistant Attorney General Brent Cohen of the Office of Justice Programs. These officials discussed a number of public-safety and justice issues with Tribal leaders, including special Tribal criminal jurisdiction, the Missing and Murdered Indigenous Persons crisis, law enforcement partnerships, and accessing funding and resources. Deputy Attorney General Monaco underscored the Justice Department’s commitment to working in partnership with Tribal law enforcement, including through the Tribal Special Assistant United States Attorney initiative and funding opportunities through the Office of Violence Against Women to support special Tribal criminal jurisdiction.
Associate Attorney General Gupta announced that the Environment and Natural Resources Division has established a dedicated email inbox for Tribal leaders to contact the Justice Department with litigation-related inquiries. She also described ongoing efforts to streamline the grantmaking process for Tribes and to explore the possibility of enhancing public safety in Tribal communities through Tribal compacting.
Associate Attorney General Gupta also spoke at a panel entitled “Substance Use and Mental Health in Tribal Communities,” alongside Tribal leaders and other senior administration officials. She emphasized the Justice Department’s commitment to supporting Tribal solutions for Tribal problems, and described how her meetings with Tribal leaders, including in Minnesota and Alaska earlier this year, have highlighted the importance of supporting Healing-to-Wellness Courts and other comprehensive services to address substance abuse and addiction in Tribal communities.
Associate Attorney General Gupta outlined ongoing efforts by the Justice Department’s grantmaking offices to make grants more readily accessible to Tribal communities, including through the Coordinated Tribal Assistance Solicitation, which will be open in December 2023, and the Department’s Directory of Tribal Grants. She concluded by reaffirming the Justice Department’s commitment to supporting Tribes’ efforts not only in enforcement but also in prevention, support, recovery, and healing.
Yesterday, Director Rosie Hidalgo of the Office on Violence Against Women joined U.S. Attorney Alison J. Ramsdell for the District of South Dakota and Executive Assistant Director Timothy Langan Jr. of the FBI’s Criminal, Cyber, Response and Services Branch on a panel entitled “Next Steps to Address the Crisis of MMIP.” Director Hidalgo highlighted OVW’s commitment to addressing the crisis of Missing or Murdered Indigenous Persons. Additionally, she announced that OVW released its first Notice of Reimbursement under the new Tribal Reimbursement Program, established in VAWA 2022, for expenses incurred in exercising special Tribal criminal jurisdiction over non-Indians who commit certain covered crimes in Indian country.
Pocahontas County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Jose Dominguez, 42, of Snowshoe, pleaded guilty today to possession with intent to distribute methamphetamine.
According to court documents and statements made in court, on August 29, 2022, law enforcement officers conducted a traffic stop of a vehicle driven by Dominguez in Beckley. During the traffic stop, a police K-9 alerted to the presence of controlled substances in the vehicles. Officers observed an open bag containing methamphetamine on the driver’s side floorboard. Dominguez admitted that he possessed the approximately 659 grams of methamphetamine found in the bag, that he had just acquired the controlled substance and that he intended to distribute it within the Southern District of West Virginia.
Dominguez is scheduled to be sentenced on March 29, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Beckley/Raleigh County Drug and Violent Crime Unit, the Beckley Police Department, and the Raleigh County Sheriff’s Office. The Beckley/Raleigh County Drug and Violent Crime Unit consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Office, and the Beckley Police Department.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Timothy D. Boggess is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-15.
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Pavion Company to Pay $1.75 Million to Resolve False Claims Act Allegations of Small Business Contracting FraudRead the Press Release
ALEXANDRIA, Va. –A company located in Chantilly has agreed to pay $1.75 million to settle civil fraud allegations that it and its subsidiaries improperly obtained government contracts that were set-aside for small businesses.
The United States alleged that the Pavion Company (Pavion) ceased to qualify as a small business concern after its predecessor company was acquired in 2016 by the private equity firm Tower Arch Capital. The United States further alleged that, after its acquisition, Pavion, including two of its subsequently acquired subsidiaries, falsely certified themselves as qualified small businesses in the System for Award Management (SAM.gov). Following its acquisition by Tower Arch Capital, Pavion and its subsidiaries were awarded 117 set-aside small business contracts across twenty different federal agencies that they were ineligible to receive.
Pavion’s management submitted a written contractor disclosure to the Department of Defense Office of Inspector General in August 2023. The disclosure explained that Pavion discovered its conduct during post-acquisition integration and consolidation activities and described the corrective actions that Pavion has taken to prevent future misrepresentations concerning its size. Pavion cooperated in full during the ensuing investigation. This settlement resolves federal civil claims under the False Claims Act.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia; Department of Defense, Office of Inspector General, Defense Criminal Investigative Service’s Mid-Atlantic Field Office; the General Services Administration, Office of Inspector General; the U.S. Air Force Office of Special Investigations; the Department of Health and Human Services, Office of Inspector General; U.S. Army Criminal Investigation Division, Major Procurement Fraud Field Office; Naval Criminal Investigative Service Economic Crimes Field Office; the Department of Justice, Office of Inspector General; the Department of the Interior, Office of Inspector General; the Department of the Treasury, Inspector General for Tax Administration; the Department of Veterans Affairs, Office of Inspector General; the Department of Commerce, Office of Inspector General; the Department of Energy, Office of Inspector General; the Coast Guard Investigative Service; the Department of Transportation, Office of Inspector General; the Federal Housing Finance Agency; the Department of State, Office of Inspector General; the National Transportation Safety Board; the Occupational Safety and Health Review Commission; and the Department of Homeland Security, Office of Inspector General, Major Frauds and Corruption Unit.
This matter was investigated by Assistant U.S. Attorney Tanya Kapoor.
The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Ontario county man going to prison for bilking investors out of hundreds of thousands of dollarsRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Thomas Corsaro, 60, of Bloomfield, NY, who was convicted of wire fraud, was sentenced to serve 48 months in prison by Chief U.S. District Judge Elizabeth A. Wolford. Corsaro was also ordered to pay $1,447,809.19 restitution.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that between November 2020, and November 2022, Corsaro, acting as an investment adviser, executed a scheme to defraud eight individual investors who invested funds with him. Rather than invest the funds, as he represented he would do, Corsaro used the funds for his own personal use, depositing the funds into personal and business bank accounts. In total, Corsaro received $1,712,469.32 from the eight investors. He repaid $265,642.83 prior to the criminal investigation.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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New Orleans Man Sentenced to 227 Months in Prison for Armed CarjackingRead the Press Release
NEW ORLEANS, LA – United States District Judge Lance M. Africk sentenced FURRELL JOHNSON, age 33, of New Orleans, to 227 months in prison for armed carjacking, announced United States Attorney Duane A. Evans.
JOHNSON pleaded guilty to two counts related to the carjacking of a Honda CRV on October 13, 2022, including carjacking and brandishing a firearm during a crime of violence. According to court records, JOHNSON approached the victim as the victim was returning to his vehicle and snatched a key from the victim’s hand. When the victim turned toward JOHNSON, JOHNSON pulled a black semi-automatic handgun from his waistband and pointed it at the victim. JOHNSON and a still unidentified accomplice then fled in the vehicle.
Judge Africk sentenced JOHNSON to 71 months on the carjacking count, to be followed by three years of supervised release. On the brandishing a firearm count, Judge Africk sentenced JOHNSON to 156 months to be served consecutively to the 71 months on the carjacking count, for a total sentence of 227 months. Judge Africk imposed five years of supervised release on the firearm count. JOHNSON was also ordered to pay a mandatory $100 special assessment feeper count.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department in investigating this matter. The case is being prosecuted by Assistant U.S. Attorney David Haller of the Violent Crime Unit.