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Wednesday 18 October 2023
South Bend Man Sentenced to 64 Months in PrisonRead the Press Release
SOUTH BEND – Elijah Jackson, 34 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to unlawful possession of a firearm by a felon, announced United States Attorney Clifford D. Johnson.
Jackson was sentenced to 64 months in prison followed by 2 years of supervised release.
According to documents in the case, in June 2022, Jackson forced his way into a home, struggled with a resident, and then fired a gunshot after leaving the home. Police officers located him walking in the area of the incident, at which point he fled from officers and dropped a backpack. After a foot pursuit, Officers recovered a loaded handgun from his waistband and another loaded handgun from his pocket. His backpack contained a loaded extended magazine for a firearm as well as marijuana and pills.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the South Bend Police Department. The case was prosecuted by Assistant United States Attorney Jerome W. McKeever.
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.
Social Security employee pleads guilty to stealing government benefitsRead the Press Release
ATLANTA – Latonja Goodrum, a former Social Security employee who used her position to steal benefits from disabled Supplemental Security Income (SSI) beneficiaries, has pleaded guilty to a federal charge of theft of government funds.
“Disabled and low-income citizens rely on the safety net afforded by the Social Security Administration,” said U.S. Attorney Ryan K. Buchanan. “Goodrum abused her position at the agency to unlawfully access and use sensitive and personal information to steal thousands of dollars from individuals in critical need of these funds.”
“Former SSA employee, Goodrum, admitted to inappropriately using information in SSA records to steal money from SSI recipients, seemingly without regard for their needs. Her actions were selfish and criminal,” said Gail S. Ennis, Inspector General for the Social Security Administration. “She misused her position of public trust with SSA and knowingly took money from individuals who rely on SSA employees for assistance in critical times. My office will continue to investigate those who violate SSA programs and operations. I thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Diane C. Schulman for prosecuting this case.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From approximately June through August 2022, Goodrum, a claims specialist at the Social Security Administration’s field office in Decatur, Georgia, illegally accessed the records of six SSI beneficiaries. Goodrum then used the personal identifying information of these individuals to divert one-time lump sum payments they were due to her own PayPal account. Once the funds were deposited into her PayPal account, Goodrum transferred the money to a personal bank account.
To conceal her scheme, Goodrum, once the deposits arrived in her PayPal account, re-accessed the beneficiaries’ Social Security records to restore their true direct deposit banking information. Goodrum stole more than $15,000 in this way. A supervisor eventually detected the fraud and contacted the Social Security Administration – Office of the Inspector General, which launched an investigation. Goodrum admitted her crime when confronted by law enforcement and has since been terminated from her position.
Sentencing for Goodrum, 55, of Stone Mountain, Georgia, is scheduled for January 22, 2024, at 10:00 am before U.S. District Judge Steven D. Grimberg.
This case is being investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Social Media Influencer Sentenced for Election Interference in 2016 Presidential RaceRead the Press Release
A social media influencer was sentenced today to seven months in prison and fined $15,000 for his role in a conspiracy to interfere with potential voters’ right to vote in the 2016 presidential election.
According to court documents, by 2016, Douglass Mackey, aka Ricky Vaughn, had established an audience on Twitter with approximately 58,000 followers. A February 2016 analysis by the MIT Media Lab ranked Mackey as one of the most significant influencers of the then-upcoming presidential election. Between September 2016 and November 2016, Mackey conspired with other influential Twitter users and with members of private online groups to use social media platforms, including Twitter, to disseminate fraudulent messages that encouraged supporters of presidential candidate Hillary Clinton to “vote” via text message or social media, which was legally invalid.
For example, on Nov. 1, 2016, in or around the same time that Mackey was sending tweets suggesting the importance of limiting “black turnout,” Mackey tweeted an image depicting an African American woman standing in front of an “African Americans for Hillary” sign. The ad stated: “Avoid the Line. Vote from Home,” “Text ‘Hillary’ to 59925,” and “Vote for Hillary and be a part of history.” The fine print at the bottom of the deceptive image stated: “Must be 18 or older to vote. One vote per person. Must be a legal citizen of the United States. Voting by text not available in Guam, Puerto Rico, Alaska or Hawaii. Paid for by Hillary For President 2016.” The tweet included the typed hashtag “#ImWithHer,” a slogan frequently used by then-presidential candidate Hillary Clinton. On or about and before Election Day 2016, at least 4,900 unique telephone numbers texted “Hillary” or some derivative to the 59925 text number, which had been used in multiple deceptive campaign images that Mackey and his co-conspirators tweeted.
Several hours after tweeting the first image, Mackey tweeted an image depicting a woman seated in a conference room typing a message on her cell phone. This deceptive image was written in Spanish and mimicked a font that the Clinton campaign used in authentic ads. The image also included a copy of the Clinton campaign’s logo and the “ImWithHer” hashtag.
A federal jury in Brooklyn previously convicted Mackey at trial for conspiracy against rights.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.
The FBI investigated the case.
Trial Attorney William J. Gullotta of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Erik D. Paulsen and F. Turner Buford and Paralegal Specialist Shivani Parshad for the Eastern District of New York prosecuted the case.
Social Media Influencer Douglass Mackey Sentenced after Conviction for Election Interference in 2016 Presidential RaceRead the Press Release
Douglass Mackey, was sentenced today by United States District Judge Ann M. Donnelly to 7 months in prison for his role in a conspiracy to interfere with potential voters’ right to vote in the 2016 election for the Office of the President of the United States. Douglass Mackey, also known as “Ricky Vaughn,” was previously convicted of the charge of Conspiracy Against Rights at trial by a federal jury in Brooklyn. Mackey was convicted of the charge in March 2023 following a three-week trial.
Breon Peace, United States Attorney for the Eastern District of New York, Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“One of the foundational rights we hold as Americans, a right that many fought so hard to obtain, is the right to vote. The defendant weaponized disinformation in a dangerous scheme to stop targeted groups, including black and brown people and women, from participating in our democracy,” stated United States Attorney Peace. “This groundbreaking prosecution demonstrates our commitment to prosecuting those who commit crimes that threaten our democracy and seek to deprive people of their constitutional right to vote.”
As proven at trial, by 2016, Mackey had established an audience on Twitter with approximately 58,000 followers. A February 2016 analysis by the MIT Media Lab ranked Mackey as one of the most significant influencers of the then-upcoming presidential election. Between September 2016 and November 2016, Mackey conspired with other influential Twitter users and with members of private online groups to use social media platforms, including Twitter, to disseminate fraudulent messages that encouraged supporters of presidential candidate Hillary Clinton to “vote” via text message or social media which was legally invalid.
For example, on November 1, 2016, in or around the same time that Mackey was sending tweets suggesting the importance of limiting “black turnout,” the defendant tweeted an image depicting an African American woman standing in front of an “African Americans for Hillary” sign. The ad stated: “Avoid the Line. Vote from Home,” “Text ‘Hillary’ to 59925,” and “Vote for Hillary and be a part of history.” The fine print at the bottom of the deceptive image stated: “Must be 18 or older to vote. One vote per person. Must be a legal citizen of the United States. Voting by text not available in Guam, Puerto Rico, Alaska or Hawaii. Paid for by Hillary For President 2016.” The tweet included the typed hashtag “#ImWithHer,” a slogan frequently used by Hillary Clinton. On or about and before Election Day 2016, thousands of unique telephone numbers texted “Hillary” or some derivative to the 59925 text number, which had been used in multiple deceptive campaign images tweeted by Mackey and his co-conspirators.
Several hours after tweeting the first image, Mackey tweeted an image depicting a woman seated at a conference room typing a message on her cell phone. This deceptive image was written in Spanish and mimicked a font used by the Clinton campaign in authentic ads. The image also included a copy of the Clinton campaign’s logo and the “ImWithHer” hashtag.
This case was investigated by the FBI.
This case is being prosecuted by Assistant United States Attorneys Erik D. Paulsen and F. Turner Buford of the Eastern District of New York’s Public Integrity Section and Trial Attorney William J. Gullotta of the Department of Justice’s Public Integrity Section.
The Defendant:
DOUGLASS MACKEY
Age: 34
West Palm Beach, FloridaE.D.N.Y. Docket No. 21-CR-80 (AMD)
Silicon Valley Executive Sentenced for Defrauding Investors and Participating in COVID-19 and Allergy Testing SchemeRead the Press Release
The president of a Silicon Valley-based medical technology company was sentenced today to eight years in prison and ordered to pay $24 million in restitution for participating in a scheme to defraud investors and a scheme to commit health care fraud and pay illegal kickbacks in connection with the submission of over $77 million in claims for COVID-19 and allergy testing.
“A Silicon Valley executive exploited the pandemic for profit, ultimately endangering patients with unproven COVID-19 tests,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Department of Justice is committed to protecting the people of this nation by investigating and prosecuting those who put public health at risk and use global emergencies to line their own pockets.”
“Schena put profit over public safety. He used the global pandemic as a backdrop to fuel a kickback scheme and a massive fraud upon investors and people searching for better health care during a time of great uncertainty,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “Even in times of national crisis, our office will ensure that Silicon Valley remains a place where innovation and ingenuity – and not fraud and deceit – fuel vibrant markets for investors and inventors.”
According to court documents, Mark Schena, 60, of Los Altos, California, was the president of Arrayit Corporation. Schena engaged in a scheme to defraud Arrayit’s investors by claiming that he had invented a revolutionary technology to test for virtually any disease using a single drop of blood from a finger stick sample. In meetings with investors, Schena and his publicist claimed that Schena was the “father of microarray technology” and that he was on the shortlist for the Nobel Prize. Schena also falsely represented to investors that Arrayit could be valued at $4.5 billion.
“Today’s outcome illustrates HHS-OIG’s unwavering commitment to protecting federal health care programs under any circumstance – especially when a public health emergency presents opportunities for bad actors to exploit,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We continue to work tenaciously with our law enforcement partners to bring to justice those who have constructed schemes to take advantage of the COVID-19 pandemic for personal gain.”
“Every time there’s a disaster of some type, scammers climb out of the woodwork with schemes to bilk people out of their money,” said Postal Inspector in Charge of Criminal Investigations Eric Shen of the U.S. Postal Inspection Service (USPIS). “In this case, Mark Schena and the Arrayit Corporation were already involved in deceiving the public before the COVID-19 pandemic hit. When the pandemic hit, the company then attempted to develop a COVID-19 antibody test but were unsuccessful. Despite having no product and on the verge of bankruptcy, Schena continued to defraud investors, claiming to have multimillion-dollar contracts and other business developments that all proved to be bogus.”
In furtherance of the scheme, Schena failed to release Arrayit’s financial disclosures – as required by the Securities and Exchange Commission (SEC) – and concealed that Arrayit was on the verge of bankruptcy. Schena lulled investors who were concerned that the company was a “scam” by engaging in television appearances and filming videos that fraudulently portrayed the laboratory as busy and high-tech. Schena also issued false press releases and public statements on social media that Arrayit had entered into lucrative partnerships with companies, government agencies, and public institutions, including a children’s hospital and a major California health care provider. The press releases and statements falsely claimed that such entities had agreed to use the Arrayit technology, when in fact no such agreements existed or were of minimal value.
“Those who used the pandemic for illicit profit by engaging in health care fraud and defrauding investors must face the consequences of their actions,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and its partners will work relentlessly to protect the American people from abuses to our financial and health care systems, and this sentencing reflects those efforts.”
Schena also orchestrated an illegal kickback and health care fraud scheme that involved submitting fraudulent claims to Medicare and private insurance for unnecessary allergy testing. Arrayit ran allergy screening tests on every patient for 120 different allergens regardless of medical necessity. To obtain patient blood specimens, Schena paid kickbacks to marketers in violation of the Eliminating Kickbacks in Recovery Act and orchestrated a deceptive marketing plan that falsely claimed that the Arrayit test was highly accurate in diagnosing allergies, when it was not, in fact, a diagnostic test. The Health Care Fraud Unit’s Data Analytics Team supported the prosecution and, as the evidence at trial showed, Arrayit billed more per patient to Medicare for blood-based allergy testing than any other laboratory in the United States.
“This sentence holds the defendant accountable for his large-scale fraud scheme that impacted multiple federal agencies and robbed the taxpayers of millions of dollars,” said Inspector General Michael J. Missal of the Department of Veterans Affairs Office of Inspector General (VA-OIG). “The VA-OIG will continue to work zealously with our law enforcement partners to ensure schemes like this are uncovered, investigated, and prosecuted to the fullest extent of the law.”
“Mr. Schena’s sentencing is a fitting resolution that holds him accountable for a multimillion-dollar fraudulent scheme driven purely by greed and devoid of fiscal responsibility or concern for the patients that would ultimately use his nearly useless products,” said Director Kelly P. Mayo of the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS). “DCIS remains committed to working with its partners to identify and eliminate fraudulent schemes that potentially endanger patient safety and corrupt the integrity of TRICARE, the DoD’s health care program.”
In early 2020, Schena falsely announced that Arrayit “had a test for COVID-19.” Schena told federal agents that it was simple to develop a test for COVID-19 because the switch from testing for allergies to testing for COVID-19 was “like a pastry chef” who switches from selling “strawberry pies” to selling “rhubarb and strawberry pies.” Seeking to capitalize on the nationwide shortage of COVID-19 testing, Schena orchestrated a deceptive marketing scheme that falsely claimed that Dr. Anthony Fauci and other prominent government officials had mandated testing for COVID-19 and allergies at the same time, and required that patients receiving the Arrayit COVID-19 test also be tested for allergies. Schena also concealed from investors and patients that the Food and Drug Administration had informed him that the Arrayit test was not accurate enough to receive an Emergency Use Authorization for use in the United States.
A federal jury convicted Schena on Sept. 6, 2022.
The HHS-OIG’s San Francisco and Detroit Regional Offices, USPIS, FBI, VA-OIG, and DCIS investigated the case.
Principal Assistant Chief Jacob Foster and Trial Attorney Laura Connelly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christina Liu for the Northern District of California prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim who has invested in Arrayit, or you have taken a COVID-19 test prepared or marketed by Arrayit, please visit www.justice.gov/criminal-vns/case/Arrayit.
Silicon Valley Executive Sentenced for Defrauding Investors and Participating in Covid-19 and Allergy Testing SchemeRead the Press Release
SAN JOSE – The president of a Silicon Valley-based medical technology company was sentenced today to eight years in prison and ordered to pay $24 million in restitution for participating in a scheme to defraud investors and a scheme to commit health care fraud and pay illegal kickbacks in connection with the submission of over $77 million in claims for COVID-19 and allergy testing.
Mark Schena, 60, of Los Altos, California, served as the president of Arrayit Corporation. Schena engaged in a scheme to defraud Arrayit’s investors by claiming that he had invented a revolutionary technology to test for virtually any disease using a single drop of blood from a finger stick sample. In meetings with investors, Schena and his publicist claimed that Schena was the “father of microarray technology” and that he was on the shortlist for the Nobel Prize. Schena also falsely represented to investors that Arrayit could be valued at $4.5 billion.
“Schena put profit over public safety. He used the global pandemic as a backdrop to fuel a kickback scheme and a massive fraud upon investors and people searching for better health care during a time of great uncertainty,” said U.S. Attorney for the Northern District of California Ismail J. Ramsey. “Even in times of national crisis, our office will ensure that Silicon Valley remains a place where innovation and ingenuity – and not fraud and deceit – fuel vibrant markets for investors and inventors.”
“A Silicon Valley executive exploited the pandemic for profit, ultimately endangering patients with unproven COVID-19 tests,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Department of Justice is committed to protecting the people of this nation by investigating and prosecuting those who put public health at risk and use global emergencies to line their own pockets.”
“Today’s outcome illustrates HHS-OIG’s unwavering commitment to protecting federal health care programs under any circumstance – especially when a public health emergency presents opportunities for bad actors to exploit,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We continue to work tenaciously with our law enforcement partners to bring to justice those who have constructed schemes to take advantage of the COVID-19 pandemic for personal gain.”
“Every time there’s a disaster of some type, scammers climb out of the woodwork with schemes to bilk people out of their money,” said Postal Inspector in Charge of Criminal Investigations Eric Shen of the U.S. Postal Inspection Service (USPIS). “In this case, Mark Schena and the Arrayit Corporation were already involved in deceiving the public before the COVID-19 pandemic hit. When the pandemic hit, the company then attempted to develop a COVID-19 antibody test but were unsuccessful. Despite having no product and on the verge of bankruptcy, Schena continued to defraud investors, claiming to have multimillion-dollar contracts and other business developments that all proved to be bogus.”
In furtherance of the scheme, Schena failed to release Arrayit’s financial disclosures – as required by the Securities and Exchange Commission (SEC) – and concealed that Arrayit was on the verge of bankruptcy. Schena lulled investors who were concerned that the company was a “scam” by engaging in television appearances and filming videos that fraudulently portrayed the laboratory as busy and high-tech. Schena also issued false press releases and public statements on social media that Arrayit had entered into lucrative partnerships with companies, government agencies, and public institutions, including a children’s hospital and a major California health care provider. The press releases and statements falsely claimed that such entities had agreed to use the Arrayit technology, when in fact no such agreements existed or were of minimal value.
“Those who used the pandemic for illicit profit by engaging in health care fraud and defrauding investors must face the consequences of their actions,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and its partners will work relentlessly to protect the American people from abuses to our financial and health care systems, and this sentencing reflects those efforts.”
Schena also orchestrated an illegal kickback and health care fraud scheme that involved submitting fraudulent claims to Medicare and private insurance for unnecessary allergy testing. Arrayit ran allergy screening tests on every patient for 120 different allergens regardless of medical necessity. To obtain patient blood specimens, Schena paid kickbacks to marketers in violation of the Eliminating Kickbacks in Recovery Act and orchestrated a deceptive marketing plan that falsely claimed that the Arrayit test was highly accurate in diagnosing allergies, when it was not, in fact, a diagnostic test. The Health Care Fraud Unit’s Data Analytics Team supported the prosecution and, as the evidence at trial showed, Arrayit billed more per patient to Medicare for blood-based allergy testing than any other laboratory in the United States.
“This sentence holds the defendant accountable for his large-scale fraud scheme that impacted multiple federal agencies and robbed the taxpayers of millions of dollars,” said Inspector General Michael J. Missal of the Department of Veterans Affairs Office of Inspector General (VA-OIG). “The VA-OIG will continue to work zealously with our law enforcement partners to ensure schemes like this are uncovered, investigated, and prosecuted to the fullest extent of the law.”
“Mr. Schena’s sentencing is a fitting resolution that holds him accountable for a multimillion-dollar fraudulent scheme driven purely by greed and devoid of fiscal responsibility or concern for the patients that would ultimately use his nearly useless products,” said Director Kelly P. Mayo of the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS). “DCIS remains committed to working with its partners to identify and eliminate fraudulent schemes that potentially endanger patient safety and corrupt the integrity of TRICARE, the DoD’s health care program.”
In early 2020, Schena falsely announced that Arrayit “had a test for COVID-19.” Schena told federal agents that it was simple to develop a test for COVID-19 because the switch from testing for allergies to testing for COVID-19 was “like a pastry chef” who switches from selling “strawberry pies” to selling “rhubarb and strawberry pies.” Seeking to capitalize on the nationwide shortage of COVID-19 testing, Schena orchestrated a deceptive marketing scheme that falsely claimed that Dr. Anthony Fauci and other prominent government officials had mandated testing for COVID-19 and allergies at the same time, and required that patients receiving the Arrayit COVID-19 test also be tested for allergies. Schena also concealed from investors and patients that the Food and Drug Administration had informed him that the Arrayit test was not accurate enough to receive an Emergency Use Authorization for use in the United States.
A federal jury convicted Schena on Sept. 6, 2022.
The HHS-OIG’s San Francisco and Detroit Regional Offices, USPIS, FBI, VA-OIG, and DCIS investigated the case.
Assistant U.S. Attorney Christina Liu and Principal Assistant Chief Jacob Foster and Trial Attorney Laura Connelly of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim who has invested in Arrayit, or you have taken a COVID-19 test prepared or marketed by Arrayit, please visit www.justice.gov/criminal-vns/case/Arrayit.
Shrewsbury Bookkeeper Sentenced for Embezzling $849,000Read the Press Release
ST. LOUIS – A bookkeeper from Shrewsbury, Missouri who embezzled $849,000 from a client and blamed one of her employees was sentenced Wednesday to a year and a day in federal prison.
U.S. District Judge Henry E. Autrey also ordered Cora G. Willard, 47, to repay the money. She repaid $100,000 Wednesday.
Willard ran a bookkeeping, payroll, and money-management assistance company called Red Hen Business Services. She admitted in a guilty plea in April that from at least Nov. 29, 2019 through June 10, 2022, she stole $849,000 from a man who operated a money management business and had provided her with access to his account and financial records. Willard made nearly 100 unauthorized wire transfers to herself from the victim’s bank account, even after he’d asked her to close the account. She also sent the tax and bill payments that she was supposed to be making for her client into bank accounts that she controlled. She sent false balance sheets to her client to cover up her theft.
After the client discovered that he was missing large amounts of money, Willard blamed one of her employees, her guilty plea says.
Willard pleaded guilty to one felony count of wire fraud.
The case was investigated by the FBI. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Second Passaic County Man Charged with Conspiring to Commit Seven Armed Robberies of Several PharmaciesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey man arrested in connection with seven armed robberies of pharmacies made his initial appearance today in Newark federal court, U.S. Attorney Philip R. Sellinger announced.
Onijee Burgess, 26, of Paterson, New Jersey, is charged by complaint with one count of conspiracy to commit Hobbs Act robbery. Burgess made his initial appearance today before U.S. Magistrate Judge Edward S. Kiel in Newark federal court and was detained].
According to the complaint and statements made in court:
From November 2022 through April 5, 2023, Burgess conspired with Antonio Rivera and others to commit seven separate armed robberies of five different pharmacies in Paterson and Passaic, New Jersey to steal prescription medication. Rivera was previously charged by complaint for two of these robberies. During those robberies, Rivera fired a gun and pointed it at numerous victims. The charges against him are merely accusations, and he is presumed innocent unless and until proven guilty.
The conspiracy to commit Hobbs Act robbery carries a maximum potential penalty of 20 years in prison and a potential $250,000 fine.
U.S. Attorney Sellinger credited members of the FBI’s New Jersey field office, under the direction of Special Agent in Charge James E. Denney, with the investigation leading to the charges. He also thanked members of the Paterson Police Department, under the leadership of Officer in Charge Isa M. Abbassi; members of the Passaic Police Department, under the leadership of Police Chief Luis Guzman; members of the Passaic County Sheriff's Office, under the leadership of Sheriff Richard H. Berdnik; members of the Clifton Police Department, under the leadership of Police Chief Thomas Rinaldi; members of the Bergen County Prosecutor's Office, under the leadership of Chief Jason Love; and members of the Cedar Grove Police Department, under the leadership of Police Chief John J. Kennedy; with their help in the investigation.
The government is represented by Assistant U.S. Attorney Sophie Kaiser of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
burgess.complaint.pdfRutland Man Pleads Guilty to Conspiring to Access Protected Computer Network of Medical Treatment ProviderRead the Press Release
BOSTON – A Rutland man pleaded guilty today in federal court in Worcester to conspiring to access a protected computer of his former employer – a non-profit substance use and mental health treatment provider that operates recovery centers throughout Massachusetts.
Nathan Howe, 42, pleaded guilty to one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to access a protected computer to obtain information and cause damage and one count of intentionally causing damage to a protected computer and impairing medical treatment. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for Jan. 17, 2024.
Howe was indicted by a federal grand jury in April 2023. Co-conspirator Patrick Edmonds-Morin has since pleaded guilty and is scheduled to be sentenced Dec. 13, 2023.
Howe and Edmonds-Morin were employed by the non-profit until April 2021 and October 2020, respectively. Between September and December of 2021, Howe conspired with Edmonds-Morin to access records of the non-profit’s employees, listen to and view conversations between the employees, and create and deploy a computer program designed to impede the non-profit’s use of the network. In November 2021, Howe accessed the computer network and transmitted a command that shut down the network for the non-profit’s Westborough campus where individuals were receiving in-patient treatment. By shutting down the network, Howe made the non-profit’s electronic medical records system inaccessible at its sites across Massachusetts, impairing or potentially impairing the medical examination, diagnosis, treatment and care of patients.
Additionally, between July 2018 and November 2020, Howe and Edmonds-Morin conspired to commit wire fraud by obtaining cell phones from a cell phone provider which were intended for the non-profit’s staff and, instead, selling the cell phones to third parties for personal profit, typically in the amounts of hundreds of dollars per phone.
“In the Information Age, all one needs to commit crime is a keyboard and malicious intent. As this prosecution demonstrates, our office is committed to protecting computer networks from intrusions and fraud,” said Acting United States Attorney Joshua S. Levy.
“When Nathan Howe betrayed the trust placed in him by his former employer by illegally accessing their computer network, he also potentially jeopardized the treatment and care of their patients,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This case illustrates the ongoing commitment of FBI Boston’s Cyber Task Force to work with our partners to ensure cybercriminals are brought to justice to face significant consequences for their conduct.”
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of up to $250,000. The charge of conspiracy to access a protected computer without authorization to obtain information and cause damage, provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of intentionally causing damage without authorization to a protected computer and causing the potential impairment of medical treatment provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Assistant U.S. Attorney Brendan O’Shea of the Worcester Branch Office is prosecuting the case.
Registered Nurse Charged with Stealing Pain MedicationsRead the Press Release
ST. PAUL, Minn. – A registered nurse has been indicted for fraudulently obtaining prescription opioid pain medications from a hospice clinic, announced U.S. Attorney Andrew M. Luger.
According to court documents, Cambie Elizabeth Broker, 33, was a registered nurse case manager at a hospice clinic in Baxter, Minnesota. Broker entered false prescription requests into the clinic’s e-prescribing software to fraudulently obtain oxycodone, hydromorphone, and fentanyl for illegal sale and personal use.
Broker made her initial appearance today in U.S. District Court before Magistrate Judge Micko.
This case is the result of an investigation conducted by the DEA and the Crow Wing County Sheriff’s Office.
Assistant U.S. Attorney Bradley M. Endicott is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Readout of Justice Department Officials Participation in IACP’s Annual ConferenceRead the Press Release
This week, Justice Department officials attended the annual meeting of the International Association of Chiefs of Police (IACP) in San Diego.
IACP brings together more than 16,000 public safety professionals across the country to provide a space for them to deepen their knowledge and understanding of some of the toughest issues facing our country. By convening federal, state, local, and Tribal law enforcement, officials are able to maintain their continued partnership in order to ensure the public safety and security of the American people.
Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, Associate Attorney General Vanita Gupta, Assistant Attorney General Kristen Clarke for Civil Rights, Assistant Attorney General Amy Solomon of the Office of Justice Programs (OJP), Director Christopher Wray of the Federal Bureau of Investigation (FBI), Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Administrator Anne Milgram of the Drug Enforcement Administration (DEA), Director Ronald L. Davis of the U.S. Marshals Service (USMS), Director Hugh T. Clements of the Office of Community Oriented Policing Services (COPS Office), and Community Relations Service (CRS) Head Justin Lock were all in attendance at IACP.
During a fireside chat moderated by IACP Deputy Executive Director Terry Cunningham, Attorney General Garland discussed the Department’s request for an increase in appropriations for the COPS Office Hiring Program, recently announced funding to law enforcement agencies and stakeholders across the country, the challenges of recruitment and retention in policing, threats to law enforcement personnel, the Department’s anti-violence crime strategy, and the Department’s attack on every element of the fentanyl epidemic – from the precursor suppliers in China, to the laboratories in Mexico, to the leaders of the Sinaloa and Jalisco Cartels, to their distribution networks in the United States.
In her remarks to the IACP State Associations of Chiefs of Police, Deputy Attorney General Monaco addressed the Justice Department’s priorities of combating violent crime, taking illegal firearms off the streets, and battling the flow of synthetic opioids like fentanyl into our communities. She recognized the strong partnerships necessary to combat violent crime and the particular burden that it places on law enforcement officials with limited resources and personnel.
Associate Attorney General Gupta provided opening remarks before a panel, “Leadership Reflections: Navigating Through Crisis,” during the plenary General Assembly session on Monday. In her remarks, the Associate Attorney General acknowledged the challenges in responding to mass violence incidents, hate crimes, critical incidents involving police officers, and the epidemic of gun violence in this country. She underscored the Justice Department’s commitment to supporting law enforcement leaders and their communities in times of crisis. She discussed the Department’s efforts to support victims, including providing $9 million dollars of grants to the National Mass Violence Victimization Resource Center in Charleston, South Carolina, and the important work of the FBI’s Victim Services Division and OJP’s Office for Victims of Crime. And she highlighted the Department support and resources for officer mental health and wellness, the COPS Office’s Collaborative reform program, and the forthcoming after-action report on the horrific mass shooting in Uvalde, Texas.
Assistant Attorney General Clarke spoke to the National Association of Women Law Enforcement Executives, the Human and Civil Rights Committee, and the Indian Country Law Enforcement Section. At these meetings, she underscored the Civil Rights Division’s efforts to secure equal employment opportunities for women in the law enforcement sector and highlighted the division’s efforts to partner with law enforcement to promote constitutional, effective, and non-discriminatory policing.
The Associate Attorney General also provided opening remarks before a panel on the Department’s cross-cutting work to support police departments and the policing profession more broadly. Assistant Attorney General Solomon and COPS Director Clements spoke as leaders from the Justice Department’s grantmaking components about their commitment to providing law enforcement agencies across the country with the resources and support they need to promote safe and thriving communities. They highlighted an increase in dedicated funding for the COPS Hiring Program from $139 million in 2022 to $224 million in 2023, to requested appropriations of $2.7 billion for FY 2024. Additionally, the Department announced last week nearly $75 million in critical grant funding to law enforcement agencies and stakeholders across the country. This funding will help combat drug trafficking and provide additional mental health and wellness resources for law enforcement officers.
The law enforcement component heads all focused on the importance of law enforcement cooperation and partnership in order to accomplish their goals. The heads of all of the Justice Department law enforcement components were at IACP and emphasized the critical work their components are doing to protect the American people. FBI Director Wray highlighted the value of partnerships with state and local agencies and underscored the importance of leveraging collective resources and strengths to better protect our communities. Director Wray emphasized that law enforcement is more effective when everyone is working together and thanked our partners for their unwavering resolve in the face of challenging situations. DEA Administrator Milgram focused on the work she leads to defeat drug cartels responsible for large numbers of deaths due to fentanyl and other opioid trafficking. ATF Director Dettelbach talked about the partnerships ATF has with law enforcement officers across the country to get ghost guns off the streets. USMS Director Davis spoke about the recent success of the USMS-led high-impact fugitive apprehension initiative called Operation North Star III, where more than 4,400 violent fugitives were apprehended. He also emphasized the need for increased collaboration to address violent crime in not only major cities but also smaller jurisdiction and rural areas.
CRS Head Lock presented on CRS’ services and programs to assist communities responding to and preventing civil rights-based community tensions, bias incidents, and hate crimes.
The Justice Department will continue to support our partnerships with state, local, Tribal, and international law enforcement and to protect the American people.
Pittsburgh Resident Indicted on Charges of Violating Federal Firearms and Narcotics LawsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearm and narcotic laws, United States Attorney Eric G. Olshan announced today.
The five-count Superseding Indictment named Maurice White Jr., age 22, formerly of Pittsburgh, Pennsylvania, as the sole defendant.
According to the Superseding Indictment, on September 21, 2022, White Jr. knowingly possessed with intent to distribute a quantity of fentanyl and a quantity of cocaine base, Schedule II controlled substances. Additionally, on the same day, White Jr., possessed a firearm and ammunition as a convicted felon in furtherance of a drug trafficking crime.
The law provides for a maximum total sentence of not more than 15 years in prison, a fine of no greater than $250,000, a term of supervised release of not more than 3 years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Katherine C. Jordan is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the Superseding Indictment in this 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.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owners of timeshare resale company sentenced to federal prison for defrauding over 8,000 victims out of $18 millionRead the Press Release
ATLANTA – Jess Kinmont and John P. Wenz, Jr. have been sentenced for operating a timeshare resale scam business that affected more than 8,000 victims nationwide, many of them elderly. The victims lost more than $18 million based on the defendants’ false promises that they could help timeshare owners sell or rent their timeshare properties.
“The defendants monetized their clients’ trust to commit a multi-state fraud scheme that enabled them to steal millions of dollars from more than 8,000 victims, including many seniors who were particularly misled by the defendants’ false promises,” said U.S. Attorney Ryan K. Buchanan. “Kinmont and Wenz solicited hefty up-front fees based on fraudulent representations that they would sell and rent the victims’ timeshare properties. Their sentences demonstrate that federal law enforcement will not cease to prosecute those who commit fraud of this type.”
“For years, Kinmont and Wentz ran the scam without once selling a timeshare interest, only a series of lies,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Exploitation like this has a crippling effect on victims. The FBI and our partners will continue to pursue financial fraudsters who exploit anyone for personal and financial gain.”
“Kinmont and Wenz deserve their time in federal prison for deceiving elderly Americans trying to get out of timeshares” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Kinmont and Wenz lined their pockets by scamming thousands of victims, and we’ll continue to target fraudsters who prey on the American public with the help of our law enforcement partners.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between January 2012 through December 2016, Kinmont and Wenz operated Pro Timeshare Resales, a timeshare resale business. The defendants hired callers and developed scripts for those callers to use in targeting timeshare property owners to defraud.
Using the scripts, the defendants and others acting at their direction called timeshare owners and falsely claimed that Pro Timeshare Resales had a buyer or renter ready and willing to buy or rent their properties for a specific price. The defendants also falsely promised to sell the timeshares quickly, sometimes within a specific time period. But Kinmont and Wenz’s representations and promises were false. In reality, they never sold a single timeshare interest during the five years of the scheme’s operation.
Kinmont and Wenz charged timeshare property owners up to $2,500 in advance while lying and failing to deliver on their promises. Even after the timeshare owners paid the advance fee, Kinmont and Wenz strung some timeshare owners along with additional false claims. For instance, the defendants assured owners that they would soon receive the proceeds from a sale or rental, and often convinced the owners to pay additional purported closing costs or other fees as a part of these fake transactions. Consumers’ requests for refunds were typically denied or ignored. Together, Kinmont and Wenz defrauded at least 8,000 victims of more than $18 million. The district court judge noted at sentencing that the defendants’ fraud scheme was “breathtaking” in scope.
On October 12, 2023, Jess Kinmont, 57, of Port Orange, Florida, was sentenced by Chief Judge Timothy C. Batten, Sr. to seven years in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $11,699,376.60. The sentence was imposed following Kinmont’s guilty plea to wire fraud conspiracy on April 5, 2023.
On October 12, 2023, John P. Wenz Jr., 43, of Palm Coast, Florida, was sentenced by Chief Judge Timothy C. Batten to three years, 10 months in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $4,845,425.88. The sentence was imposed following Wenz’s guilty plea to wire fraud conspiracy on April 1, 2021.
This case was investigated by the Federal Bureau of Investigation with valuable assistance from the Federal Trade Commission. The FTC previously prosecuted a civil fraud case against the defendants in the U.S. District Court for the Middle District of Florida.
Assistant U.S. Attorneys Bernita B. Malloy and Jesika W. French prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Organized Crime Drug Enforcement Task Force Operations Lead to Lengthy Federal Prison Sentences for Two MenRead the Press Release
LAFAYETTE/ALEXANDRIA, La. – United States Attorney Brandon B. Brown announced that two men involved in the trafficking of methamphetamine have been sentenced. Joseph R. Johnson and Isidro Chavarria were each indicted by a federal grand jury as a result of two separate Organized Crime Drug Trafficking Task Force operations.
Joseph R. Johnson, 44, of New Iberia, Louisiana, was sentenced by United States District Judge Robert R. Summerhays to 157 months (13 years, 1 month) in prison, followed by 5 years of supervised release. Johnson pleaded guilty on April 27, 2023, to one count of conspiracy to distribute and possess with intent to distribute methamphetamine. In 2020, law enforcement agents with the Drug Enforcement Administration (“DEA”) began investigating a drug trafficking organization operating in the Lafayette area and being supplied by Johnson. Through their investigation, agents learned that Johnson frequently traveled from southern California to Louisiana for the purposes of distributing narcotics. Johnson also often used the mail to transport narcotics and proceeds to and from California, Louisiana, Iowa, and South Carolina. Agents applied for and were granted authorization to intercept Johnson’s wire communications in 2021. During this interception time, agents were able to identify multiple co-conspirators who were assisting Johnson in the trafficking of methamphetamine. Through their investigative efforts, law enforcement agents were able to locate and seize multiple packages containing methamphetamine which were being shipped to and from multiple co-conspirators involved in the drug trafficking organization. Agents also identified and intercepted a vehicle transporting narcotics on behalf of Johnson and located over 30 pounds of methamphetamine concealed inside. Johnson admitted to willfully conspiring with his co-defendants in this case when he pled guilty to the charge.
This case was investigated by the Drug Enforcement Administration, Department of Homeland Security Investigations, Louisiana State Police and New Iberia Police Department and prosecuted by Assistant United States Attorneys Daniel J. Vermaelen and J. Aaron Crawford.
Isidro Chavarria, 42, a federal prison inmate, was sentenced by United States District Judge Dee D. Drell to 120 months (10 years) in prison, followed by 5 years of supervised release. Beginning in January 2021, law enforcement agents began an investigation of a federal inmate at FCI Pollock who was believed to be coordinating large scale drug distribution while in prison. Agents were made aware that contraband phones were being smuggled into the prison in order to communicate with Cartel members and other individuals involved in the drug conspiracy. Through their investigation, agents obtained evidence that Chavarria was communicating with his co-conspirators on these contraband phones and in fact, was directing his wife and other parties to distribute methamphetamine that his co-conspirator was sending her. Chavarria pleaded guilty on April 4, 2023, to one count of conspiracy to distribute and possess with intent to distribute methamphetamine.
At the time of this offense, Chavarria was serving a 210-month federal prison sentence for drug distribution offense from 2019. This sentence will run consecutive to the sentence he was serving.
This case was investigated by the Federal Bureau of Investigation and United States Postal Inspection Service and prosecuted by Assistant United States Attorney J. Aaron Crawford.
The investigation and conviction of both Johnson and Chavarria and their co-defendants is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Operation Smoke and Mirrors Update: Kanawha County Man Sentenced to Prison for Role in Methamphetamine Trafficking OrganizationRead the Press Release
CHARLESTON, W.Va. – Nicholas Bradford Confere, 35, of Mammoth, was sentenced today to three years and one month in prison, to be followed by one year of supervised release, for using a communications facility to facilitate a drug trafficking offense. Confere admitted to his role in a drug trafficking organization (DTO) that operated in the Charleston area.
According to court documents and statements made in court, on December 4, 2022, Confere used a land line telephone in Mammoth to arrange the purchase of methamphetamine from a co-defendant. During the call, Confere informed the co-defendant that other third-party individuals also had money to purchase methamphetamine from the co-defendant. The arranged meeting took place and Confere obtained a quantity of methamphetamine from the co-defendant.
Confere admitted that he obtained this methamphetamine partially on consignment, meaning he was expected to pay the co-defendant after he sold the methamphetamine. Confere further admitted to using a cellular phone to inform the co-defendant that he had sold the methamphetamine that he obtained, and therefore had the money to pay the co-defendant.
Confere is among 32 individuals indicted as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 400 pounds of methamphetamine as well as 40 pounds of cocaine, 3 pounds of fentanyl, 19 firearms and $935,000 in cash.
Twenty-one of the defendants have pleaded guilty. Indictments against the other defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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. 2:23-cr-68.
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Ontario county man going to prison on child pornography chargesRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Eric Passalacqua, 37, of Phelps, NY, who was convicted of receipt and distribution of child pornography, was sentenced to serve 20 years in prison, 15 years of supervised release, and ordered to pay $21,000 in restitution by U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that on January 20, 2023, the FBI in Rochester received information from the FBI in Anchorage Alaska, that an individual located in Phelps, NY, may have been responsible for exchanging child pornography with an individual in Alaska. Subsequent investigation determined that individual was Passalacqua. On January 24, 2023, a search warrant was executed at Passalacqua’s Phelps residence. A forensic examination of his phone recovered over 600 images of child pornography, including images that Passalacqua produced depicting a minor victim. Passalacqua also admitted to producing images of another minor victim.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia and the Anchorage Office of the FBI, under the direction of Special Agent-in-Charge Antony A. Jung.
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Okeechobee man sentenced to 20 months in prison for being found in the United States after prior removalRead the Press Release
MIAMI – On Oct. 17, a federal district judge sentenced an Okeechobee man to 20 months in prison, followed by one year of supervised release, for being found in the United States after a prior removal, in violation of Title 8, United States Code, Section 1326(a).
Jose Lara-Santos, 54, was previously removed from the United States in 2017, and was found back in the United States early this year during an arrest in Okeechobee, Florida. Lara-Santos was previously convicted of Driving Under the Influence (DUI).
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Acting Field Office Director Liana J. Castano of the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), announced the sentence.
ICE ERO, Stuart Office, investigated the case. Assistant U.S. Attorney Christopher Hudock prosecuted it.
Related court documents and information may be found 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 23-cr-14019.
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New Orleans Man Pleads Guilty to Hobbs Act Robbery ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on October 13, 2023, QUINCY JONES, a/k/a “Luck,” pled guilty to robbery in Counts 10 and 11 of the superseding indictment pending against him before the U.S. District Judge Jane Triche Milazzo.
Count 10 charges JONES with conspiring to interfere with commerce through robbery, in violation of Title 18, United States Code, Section 1951. Count 11 charges JONES with Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951.
As to Counts 10 and 11, JONES faces up to 20 years in prison, a fine of up to $250,000.00, and up to three years of supervised release. JONES also faces payment of a $100 mandatory special assessment fee. His sentencing is scheduled for January 10, 2024.
According to public documents, in 2019, the Federal Bureau of Investigation investigated a group for committing various violent crimes and illegal drug trafficking, primarily in New Orleans East and the Ninth Ward. Thereafter, JONES, along with nine others, were indicted, for conspiring to possess firearms, traffic drugs and commit armed robberies of drug dealers.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, and the St. Bernard Sheriff’s Office. Assistant United States Attorneys Maurice Landrieu of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crime Unit, are in charge of the prosecution.
New Jersey Real Estate Investor and Online Influencer Charged with Multimillion-Dollar Investment Fraud SchemeRead the Press Release
NEWARK, NJ. – A New Jersey real estate investor and influencer was arrested today for committing a multimillion-dollar Ponzi-like investment fraud scheme, U.S. Attorney Philip R. Sellinger announced.
Cesar Humberto Pina, 45, of Franklin Lakes, New Jersey, is charged by complaint with one count of wire fraud. He appear before U.S. Magistrate Judge Edward S. Kiel in Newark federal court and was release on $1 million secured bond with electronic monitoring.
“As alleged in the complaint, Pina exploited celebrity status and social media to develop a devoted following of potential victims. Promising returns that were too good to be true, Pina allegedly defrauded dozens of people of millions of dollars. Our office is committed to protecting the public from these schemes and prosecuting those who lie to investors for their own personal gain.”
U.S. Attorney Philip R. Sellinger
"Investment fraud is simply a crime of greed," U.S. Postal Inspector in Charge Christopher A. Nielsen of the U.S. Postal Inspection Service, Philadelphia Division, said. "In this case, Cesar Pina allegedly solicited dozens of individuals to provide him with millions of dollars to purchase and invest in residential properties. However, instead of sharing the profits, he defrauded his investors in a Ponzi scheme. Postal Inspectors will continue to work with our law enforcement partners to combat financial fraud and protect the American people.
“Plain and simple, the defendant ran a fraudulent scheme. They falsely represented the nature of their business and lied about potential investment returns to bilk unsuspecting victims out of millions,” Tammy Tomlins, Special Agent in Charge of IRS – Criminal Investigation Newark Field Office, said. “Today’s arrest highlights IRS Criminal Investigation and our law enforcement partners’ commitment to investigate and prosecute unlawful behavior.”
“We allege Pina offered a ridiculously high rate of return to investors, then took the millions he got and invested it in himself,” FBI – Newark Special Agent in Charge James E. Dennehy said. “History has proven time and again, Ponzi-schemes don't work. The pot of gold at the end of the rainbow eventually runs out. Investors take note – it’s your money, don’t let them steal it.”
According to documents filed in this case and statements made in court:
Pina partnered with a celebrity disc jockey and radio personality to conduct real estate seminars around the country. Through these seminars, self-promotional efforts, and other marketing strategies, Pina developed a significant social media following.
Starting in 2017, Pina began accepting investments from victim investors for the alleged purchase, remodel, and sale of specific real estate projects in New Jersey and other states. To induce his victims, Pina often promised 20 to 45 percent returns on investment within five months. But instead of using victims’ investments as promised, Pina engaged in a Ponzi-like scheme by commingling victim money, using new victim investments to pay off prior victims, and spending victim funds on personal expenditures. The investigation has revealed that Pina defrauded dozens of investors of millions of dollars.
The charge of wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross amount of any pecuniary gain that any persons derived from the offense or of any pecuniary loss sustained by any victims of the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; special agents and task force officers of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Christopher A. Nielsen, Philadelphia Division; special agents and task force officers of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked the Franklin Lakes Police Department for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Mark J. Pesce and Carolyn Silane of the Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
pina.complaint.pdfNew Haven Man Who Possessed Ghost Gun Sentenced to 54 Months in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that NIQUELLE LANDELIUS, 27, of New Haven, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 54 months of imprisonment, followed by three years of supervised release, for firearm and narcotics offenses.
According to court documents and statements made in court, on February 22, 2022, New Haven Police arrested Landelius after a court-authorized search of his Chatham Street residence revealed a loaded privately made 9mm semi-automatic pistol, which had no serial number or manufacturer information (“ghost gun”), and distribution quantities of crack cocaine and heroin.
Landelius’ criminal history includes state convictions for felony narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Investigators subsequently submitted to the National Integrated Ballistic Information Network (NIBIN) test-fired shell casings from the seized handgun. Analysis of the shell casings revealed that it matched shell casings that were recovered at two shooting incidents that occurred in New Haven on February 13, 2022.
Landelius has been detained since his arrest. On March 8, 2023, he pleaded guilty to one count of unlawful possession of ammunition by a felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the New Haven Police Department. This case was prosecuted by Assistant U.S. Attorney Stephanie T. Levick.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
New Castle Resident Indicted on a Charge of Violating Federal Consumer Product Tampering LawsRead the Press Release
PITTSBURGH, PA - A resident of New Castle, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal consumer product tampering laws, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Shane Jon-Paul White, age 41, of New Castle, PA, as the sole defendant.
According to the Indictment, between an unknown date and January 26, 2022, White, a former employee of McKesson Corporation, while working at the company’s New Castle Distribution Center, removed oxycodone hydrochloride tablets from bottles of Mallinckrodt-brand oxycodone hydrochloride 30 mg tablets and replaced them with aspirin, Tylenol or Refenesen tablets. After the oxycodone hydrochloride tablets were removed and replaced, the bottles were placed back in inventory at the McKesson distribution center before being transported to pharmacies, including Klein’s Pharmacy in Cuyahoga Falls, Ohio.
The law provides for a maximum total sentence of ten (10) years in prison, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The U.S. Food and Drug Administration conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Morgantown man sentenced to 10 years for federal drug crimeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lloyd Vaughn, age 28, of Detroit, Michigan, was sentenced to 10 years in federal prison for possession with intent to distribute methamphetamine.
According to court documents and statements made in court, Vaughn was working with several others to operate a drug trafficking organization from Detroit, Michigan, to Monongalia County. Investigators searched Vaughn’s storage unit in Morgantown and found more than a pound of methamphetamine.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government.
The Drug Enforcement Administration and the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Moldovan Charged, Arrested, and Extradited for Administration of Site Involved in the Illicit Sale of Compromised Computer CredentialsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg, along with Special Agent in Charge Kareem Carter of the IRS - Criminal Investigation Washington DC Field Office, and Special Agent in Charge David Walker of the FBI - Tampa Division, announces today the extradition and removal from the United Kingdom of Sandu Diaconu (31, Moldova) for crimes related to his administration of the E-Root Marketplace, a website that operated for years and was used to sell access to compromised computers worldwide, including servers belonging to companies and individuals in the United States. Diaconu had his initial appearance and arraignment before United States Magistrate Judge Thomas G. Wilson on October 16, 2023.
According to the indictment, Diaconu has been charged (along with a sealed co-defendant) with conspiracy to commit access device and computer fraud, wire fraud conspiracy, money laundering conspiracy, access device fraud, and computer fraud. If convicted on all counts, Diaconu faces a maximum penalty of 20 years in federal prison. The indictment also notifies Diaconu that the United States is seeking an order of forfeiture relating to the proceeds of and used in the charged criminal conduct.
Seizure orders were executed against the domain names of the E-Root Marketplace and a public takedown notice was issued at the end of 2020. Diaconu was arrested while attempting to leave the United Kingdom in May 2021. In September 2023, after Diaconu consented, the Westminster Magistrates’ Court ordered Diaconu to be extradited to the United States to face the outstanding charges.
According to court documents, the E-Root Marketplace operated across a widely distributed network and took steps to hide the identities of its administrators, buyers, and sellers. Buyers could search for compromised computer credentials on E-Root, such as RDP and SSH access, by desired criteria such as price, geographic location, internet service provider, and operating system. The Marketplace also used Perfect Money, an online payment system, to help conceal buyers’ payments. It also offered its illicit cryptocurrency exchange service for the purpose of converting Bitcoin to Perfect Money and vice-versa. This exchange was also seized.
Based on evidence obtained during the investigation, authorities believe that more than 350,000 compromised computer credentials were listed for sale on the Marketplace. The victims span the globe and all industries, including a variety of businesses and firms, as well as at least one local government agency in Tampa. Many victims were subject to ransomware attacks, and some of the stolen credentials listed on the Marketplace were linked to stolen identity tax fraud schemes.
The U.S. investigation was led by the IRS - CI Cyber Crimes Unit (Washington, D.C) and the FBI - Tampa Division. Substantial assistance was provided by the IRS-Criminal Investigation’s Tampa Field Office, the Department of Justice’s Office of International Affairs, IRS-CI and FBI International Operations at Mission UK, the United Kingdom’s National Extradition Unit, the United Kingdom’s Central Authority, and the United States Marshals Service, Tampa Field Office. The criminal investigation is being overseen by Assistant United States Attorneys Rachel Jones and Daniel Marcet. The asset forfeiture will be handled by Assistant United States Attorney Suzanne Nebesky.
An indictment 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.
Missouri Man Sentenced to 80 Years in Prison for Recording Rape of ChildrenRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Wednesday sentenced a man who recorded his rape of a young girl and an infant to 80 years in prison.
Mark Anthony Davis, 36, of Clark County, Missouri, pleaded guilty in May to two counts of production of child pornography and one count of possession of child pornography. He admitted recording his rape of the girl when she was under 10 years of age and an 11-month-old boy. Davis also admitted possessing videos containing child pornography, including the rape and torture of children.
Assistant U.S. Attorney Matt Drake, in court, said prosecutors and investigators have never seen a worse case. Davis possessed images of children being tortured and then repeatedly inflicted “hideous torture” on his own children. Davis’ behavior, Drake said, “deserves the most serious sentence possible.”
The sentence of 30 years each on the production of child pornography charges and 20 years on the possession charge, run consecutively, was the maximum possible prison sentence.
This case was investigated by the Clark County Sheriff’s Department, the Missouri State Highway Patrol, the Kirksville Police Department, the Henry County (Iowa) Sheriff’s Office, the FBI and Donya Jackson, an investigator with the U.S. Attorney’s office at the time. Assistant U.S. Attorneys Matt Drake and Robert Livergood prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Missouri Man Pleads Guilty to Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – Daniel Phillip Beckman, 46, of Watson, Missouri, pleaded guilty yesterday to receipt of child pornography.
According to court documents and statements made in court, on or about November 27, 2022, Beckman began communicating while at his Missouri residence with a minor female living within the Southern District of West Virginia through the Snapchat multimedia instant messaging application. During these Snapchat communications, Beckman offered to pay the minor female in exchange for her sending him nude images and videos of herself.
Beckman admitted that he paid the minor female approximately $625 through the CashApp mobile payment service in exchange for numerous images and videos that the minor female sent him using Snapchat. Some of these images showed the minor female’s vaginal area or depicted her masturbating. Beckman admitted that he believed the female to be a minor when he received her photos and videos, and that he saved several of the images to his phone.
On or about December 6, 2022, the minor female introduced Beckman to her friend, also a minor female. Beckman admitted that he began communicating with the other minor female on Snapchat and paid her through CashApp for several images and videos that depicted her nude pubic area. Beckman further admitted that he believed her to be a minor when he received the images, and that he specifically described to her how he wanted her to pose.
Beckman is scheduled to be sentenced on February 6, 2024, and faces a mandatory minimum of five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release, and a $250,000 fine. Beckman must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Department of Homeland Security-Homeland Security Investigations (HSI) and the West Virginia State Police.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 2:23-cr-158.
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Miami man sentenced to five and a half years in prison for running fraudulent cryptocurrency and stock investment schemeRead the Press Release
MIAMI – A Miami man was sentenced to 66 months in federal prison for running a fraudulent cryptocurrency and stock investment scheme. The judge also ordered forfeiture in the amount of $988,895.85.
From June 2020 through March 2022, Ryan James Crawford, aka “Brody,” 30, tricked victims into investing almost $1 million in his scheme by: falsely claiming to be a highly successful licensed stockbroker who had made tens of millions of dollars through similar cryptocurrency and stock investments; falsely claiming to have access to enough money to timely repay potential investors; falsely claiming that he had developed an artificial intelligence trading software that “never lost,” and misrepresenting the investment as low-risk and high reward, among other things.
Crawford did not return any victim funds, or generate the exponential returns he promised. Rather, on some occasions, he simply diverted investors’ funds and cryptocurrency for his own personal use, including to pay for luxury rental cars and gambling at the casino.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, Special Agent in Charge Rafael Barros of the U.S. Secret Service (USSS), Miami Field Office, and Interim Director Stephanie V. Daniels of the Miami-Dade Police Department (MDPD), announced the sentence.
FBI Miami, USSS Miami, and MDPD’s Cyber Crimes Investigative Unit investigated the case, with assistance from the Florida Office of Financial Regulation (OFR). Assistant U.S. Attorney Stephanie Hauser prosecuted the case. Assistant U.S. Attorneys Emily Stone and Mitch Hyman handled asset forfeiture.
Related court documents and information may be found 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 23-cr-20100.
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Man Sentenced for Role in Scheme to Defraud City of LexingtonRead the Press Release
LEXINGTON, Ky.— Nana Kawabena Amuah, 31, a native of Ghana, was sentenced to 86 months in federal prison on Wednesday, by U.S. District Judge Karen Caldwell, for conspiring to commit money laundering. Amuah was also ordered to pay $4,743,443.60 in restitution.
According to Amuah’s plea agreement, beginning in 2021, Amuah was directing a co-defendant, Shimea McDonald, to open bank accounts for receiving money from a variety of fraud victims. Amuah helped facilitate McDonald getting fake identity documentation, based on fake identity information she obtained from real people. McDonald also set up shell companies, which she then used to set up bank accounts with fake identities. Once money entered into these accounts, Amuah notified McDonald of the payments and directed her to wire or otherwise bring him the stolen funds, after McDonald had retained a portion for herself. Working with others, Amuah would then wire or otherwise bring money to the other co-conspirators, who facilitated further transfers or initiated the underlying scheme to defraud the victims, after retaining his portion of the proceeds.
In one instance, in August 2022, the conspirators impersonated a nonprofit organization, having business with the City of Lexington over email, and convinced a City official to wire funds owed to the non-profit organization to a bank account at Truist Bank. The City wired a total of $3,905,837.05 to the Gretson Company LLC bank account at Truist Bank. Prior to the August 2022 wire transfer, McDonald, using the identity of K.N., had requested eight counter checks from Truist Bank, which would be funded from wires fraudulently received from the City. Then, when the money was placed in the fraudulent account at Truist Bank, McDonald, using the identity of K.N., attempted to deposit a portion of these funds into another account in the name of Gretson Company LLC, at another financial institution.
Ultimately, Truist Bank and the City of Lexington were able to recover all the funds that were fraudulently transmitted. According to Court documents, investigators found approximately 70 other victims of this conspiracy, 60 of which did suffer losses amounting to more than $4.6 million. McDonald has been convicted for her role in the offense and is scheduled to be sentenced on December 14, 2023. A third defendant, Jean Mejia-Garcia, who attempted to deposit done on the City’s money, had been charged and is awaiting trial.
Under federal law, Amuah must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Lawrence Weathers, Chief of the Lexington Police, jointly announced the sentence.
The investigation was conducted by the FBI and Lexington Police. Assistant U.S. Attorney Kate Dieruf prosecuted the case on behalf of the United States.
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Laurel felon sentenced to more than five years in prison for illegally possessing 34 firearms in his residenceRead the Press Release
BILLINGS — A Laurel man who admitted he illegally possessed firearms and ammunition after law enforcement found 34 firearms and thousands of rounds of ammunition in his residence was sentenced today to five years and eight months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Nicholas Steven Capella, 39, pleaded guilty in June to prohibited person in possession of a firearm and ammunition as charged in an indictment.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in August 2022, members of the Billings Police Department’s Street Crimes Unit were surveilling a residence in Laurel when Capella and another person left the house and got into a vehicle that was parked outside. Capella had a pistol holstered on his hip. Officers converged on the vehicle and placed Capella and the other person in custody. A search warrant was executed at the residence, and Capella agreed to open a gun safe, which contained a large cache of firearms, including assault style rifles with high-capacity magazines. Law enforcement seized approximately 34 firearms and thousands of rounds of ammunition. Capella was prohibited from possessing firearms because of felony convictions in Washington.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case. The Billings Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
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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KC Man Sentenced to 30 Years for Conspiracy to Commit Armed Robberies of Local BusinessesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to commit a series of armed robberies of local businesses in the summer of 2018, as well as an armed robbery in which a convenience store employee was beaten and fatally shot.
Louis Candler, 27, was sentenced by U.S. District Judge Roseann Ketchmark to 30 years in federal prison without parole.
On May 30, 2023, Candler pleaded guilty to three counts of aiding and abetting a robbery, one count of conspiracy to commit robbery, and one count of aiding and abetting the possession of a firearm during a violent crime.
Candler admitted that he participated in a conspiracy to commit multiple armed robberies from June 1 to July 18, 2018. Candler admitted that he and co-defendant Joe Lee Nichols, 30, of Kansas City, Mo., committed two armed robberies at Kansas City, Mo., hotels on July 14, 2018 – Wood Springs Suites, 11301 Colorado Avenue, and Arrowhead Inn, 6006 E. 31st Street.
Candler also admitted that he and Nichols committed an armed robbery in which a store clerk was killed at Inner City Oil convenience store, 5901 Swope Parkway in Kansas City, Mo., on July 16, 2018.
Video surveillance shows Nichols pointed a handgun at an employee of Inner-City Oil, who resisted and engaged in a struggle for Nichols’s firearm. Nichols fired his gun multiple times before the employee fell to the floor. The employee then retrieved a handgun and began to fire back at Nichols. Nichols began to stomp and kick at the head and body of the employee, who was still lying on the floor. The employee lost his firearm, which was recovered by Candler, who then used it to also shoot the store clerk. When they were unable to access the cash register, Nichols and Candler left the store. The employee can be seen on the surveillance video, still moving while lying on the floor, until eventually becoming motionless when he died from his injuries. A witness who saw their car leaving the area and discovered the body of the employee immediately called 911.
Candler is the sixth and final defendant to be sentenced in this case. Nichols was sentenced on Feb. 22, 2023, to 45 years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Maureen Brackett and former Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department, and agents and task force officers of the FBI.
KC Man Indicted After Officers Found 29 Firearms, Fentanyl and MethRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was indicted by a federal grand jury today after law enforcement officers found 29 firearms in his residence, along with significant amounts of fentanyl and methamphetamine.
Charles J. Dunne, 60, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Dunne on Sept. 20, 2023. Dunne remains in federal custody without bond.
Today’s indictment charges Dunne with one count of possessing fentanyl and methamphetamine with the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of being a felon in possession of firearms.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Dunne has multiple felony convictions including a prior federal felony conviction for conspiracy to manufacture methamphetamine.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers executed a search warrant at Dunne’s residence on Sept. 19, 2023. Officers found a black backpack in Dunne’s bedroom that contained 415.6 grams of powder fentanyl and 1.5782 kilograms of methamphetamine. Under the backpack, says the affidavit, officers found two handguns. Officers also found several other firearms in the bedroom, including a shotgun, an AR-15 rifle, and a sawed-off short-barreled shotgun.
In a second bedroom, according to the affidavit, officers found another large supply of firearms, including additional AR-15-style rifles, shotguns, hunting rifles and handguns. Officers found several more handguns in a third bedroom. Officers also found an additional 774.9 grams of a substance believed to be fentanyl. In total, officers found 29 firearms and approximately $16,000 in cash.
During the search, the affidavit says, Dunne began to experience a medical emergency consistent with a fentanyl overdose. EMS responded and a total of 12 doses of naloxone were administered at the scene and during transport of Dunne to the hospital.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Megan A. Baker. It was investigated by the Jackson County Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, and the Drug Enforcement Administration.
Project Safe Neighborhoods
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.
Justice Department Announces Court-Authorized Action to Disrupt Illicit Revenue Generation Efforts of Democratic People’s Republic of Korea Information Technology WorkersRead the Press Release
On Oct. 17, pursuant to a court order issued in the Eastern District of Missouri, the United States seized 17 website domains used by Democratic People’s Republic of Korea (DPRK) information technology (IT) workers in a scheme to defraud U.S. and foreign businesses, evade sanctions and fund the development of the DPRK government’s weapons program. These seizures follow the previously sealed October 2022 and January 2023 court-authorized seizures of approximately $1.5 million of the revenue that the same group of IT workers collected from unwitting victims as a result of their scheme, as well as the development of public-private information-sharing partnerships that denied the IT workers access to their preferred online freelance work and payment service providers.
“The seizures announced today protect U.S. companies from being infiltrated with North Korean computer code and help ensure that American businesses are not used to finance that regime’s weapons program,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice is committed to working with private sector partners to protect U.S. business from this kind of fraud, to enhance our collective cybersecurity and to disrupt the funds fueling North Korean missiles.”
“Today's seizures exemplify our commitment to working with our federal and international partners to recognize and disrupt the threat from illicit actors working on behalf of the Democratic People’s Republic of Korea,” said Assistant Director Bryan Vorndran of the FBI's Cyber Division. “These takedowns also serve as reminders to ensure that our private sector partners are equipped and prepared with due diligence measures to prevent the inadvertent hiring of these bad actors across American businesses. The FBI encourages U.S. companies to report suspicious activities, including any suspected DPRK IT worker activities, to your local FBI field office.”
“Employers need to be cautious about who they are hiring and who they are allowing to access their IT systems,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “You may be helping to fund North Korea’s weapons program or allowing hackers to steal your data or extort you down the line.”
“The Democratic People’s Republic of Korea has flooded the global marketplace with ill-intentioned information technology workers to indirectly fund its ballistic missile program. The seizing of these fraudulent domains helps protect companies from unknowingly hiring these bad actors and potentially damaging their business,” said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. “This scheme is so prevalent that companies must be vigilant to verify whom they're hiring. At a minimum, the FBI recommends that employers take additional proactive steps with remote IT workers to make it harder for bad actors to hide their identities. Without due diligence, companies risk losing money or being compromised by insider threats they unknowingly invited inside their systems.”
As alleged in court documents, the Government of the Democratic People’s Republic of Korea (DPRK) dispatched thousands of skilled IT workers to live abroad, primarily in China and Russia, with the aim of deceiving U.S. and other businesses worldwide into hiring them as freelance IT workers, in order to generate revenue for its weapons of mass destruction (WMD) programs. Through this scheme, which involves the use of pseudonymous email, social media, payment platform and online job site accounts, as well as false websites, proxy computers located in the United States and elsewhere, and witting and unwitting third parties, the IT workers generated millions of dollars a year on behalf of designated entities, such as the North Korean Ministry of Defense and others, directly involved in the DPRK’s UN-prohibited WMD programs.
In some instances, the IT workers also infiltrated the computer networks of unwitting employers to steal information and maintain access for future hacking and extortion schemes. The U.S. government described this scheme in a May 2022 advisory. An update to that advisory, issued today, is available here.
Certain DPRK IT workers designed the 17 website domains seized yesterday to appear as domains of legitimate, U.S.-based IT services companies, thereby helping the IT workers to hide their true identities and location when applying online to do remote work for U.S. and other businesses worldwide. In reality, this specific group of DPRK IT workers, who work for the PRC-based Yanbian Silverstar Network Technology Co. Ltd. and the Russia-based Volasys Silver Star, had previously been sanctioned in 2018 by the Department of the Treasury. These IT workers funneled income from their fraudulent IT work back to the DPRK through the use of online payment services and Chinese bank accounts.
The efforts to disrupt the DPRK IT worker threat are not limited to those of the U.S. government. Since 2022, the United States has partnered with the Republic of Korea (ROK) to provide threat information about fraudulent DPRK IT worker activity, primarily consisting of thousands of indicators (e.g., email addresses), to multiple U.S.-based online freelance work and payment service platforms used by the IT workers. These information-sharing efforts include a May 2023 symposium, jointly hosted by the U.S. Department of State and the ROK, where representatives from the United States and ROK, and the providers, jointly discussed efforts to enhance public-private partnerships to counter the DPRK IT worker threat. These private companies later informed the U.S. government that, armed with that threat information, they conducted independent investigations, improved their fraud detection mechanisms and, according to at least some of the providers, shut down thousands of additional, previously unidentified fraudulent accounts used by the same DPRK IT workers.
The National Security Division’s National Security Cyber Section and the U.S. Attorney’s Office for the Eastern District of Missouri are investigating this case. The FBI’s St. Louis Field Office conducted the investigation, with the assistance of the FBI Cyber Division.
Affidavit and Application for Seizure - $397k ; Affidavit and Application for Seizure - 12 Domain Names Affidavit and Application for Seizure - $1.1 million ; Affidavit and Application for Seizure - 5 Domain Names ;Joran van der Sloot Pleads Guilty and Is Sentenced for Extortion and Wire FraudRead the Press Release
BIRMINGHAM, Ala. – Dutch citizen Joran van der Sloot pleaded guilty today and was sentenced for his role in a scheme to obtain $250,000 from Elizabeth (“Beth”) Ann Holloway, the mother of Natalee Holloway, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton Peeples.
The guilty plea and sentencing of Joran Andreas Petrus van der Sloot, 36, occurred before U.S. District Court Judge Anna M. Manasco. Van der Sloot pleaded guilty to extortion and wire fraud and was sentenced to 20 years in prison.
According to the plea agreement, in 2010, van der Sloot solicited money from Beth Holloway, Natalee Holloway’s mother, on promises he would reveal the location of her daughter’s remains in Aruba and the circumstances of her 2005 death. However, after being paid a total of $25,100, van der Sloot provided information that he later described as “worthless.”
According to the sentencing memorandum and plea agreement, van der Sloot agreed to provide full, complete, accurate, and truthful information regarding Natalee Holloway’s disappearance in exchange for a sentence of 20 years.
“Today, the United States held Joran van der Sloot accountable for his scheme to exploit a mother looking for information about her missing daughter,” U.S. Attorney Escalona said. “The United States hopes that the information regarding Natalee Holloway’s disappearance provides some important answers for the family and the community that has followed this family’s tragedy. Today’s result would not have been possible without the help of the FBI, Department of Justice’s Office of International Affairs, and the Government of Peru, the Netherlands and Aruba, U.S. Marshals Service, and Shelby County Sherriff’s Office, who assisted in this process. I am grateful for their hard work and dedication. May this long-awaited day finally bring justice for Beth and for Natalee’s family and friends.”
“Today’s sentence holds Joran van der Sloot accountable for the pain he has caused the family and friends of Natalee Holloway,” said FBI Birmingham SAC Carlton Peeples. “After more than a decade of uncertainty, hopefully this will bring them and this community some closure. During this lengthy investigation, the FBI remained committed in aggressively pursuing and holding this individual accountable for the crimes he committed against US persons. I would like to thank our local, state, federal, and foreign partners who assisted in this investigation and a special thanks to all the FBI personnel, past and present, who worked tirelessly in bringing this individual to justice.”
The FBI investigated the case. Criminal Chief Lloyd C. Peeples and Assistant U.S. Attorney Catherine L. Crosby prosecuted the case.
Jena Medical Group, LLC, Its Principals and Physician Agree to Pay over $1.7 Million to Settle False Claims Act Liability for Improperly Performed ProceduresRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces today that Jena Medical Group, LLC, Benjamin Weiss, Moishe Hoffman, and Jason Schultz have agreed to pay the United States $1,724,986.08 to resolve allegations that they violated the False Claims Act by submitting claims to Medicare and TRICARE for radiofrequency ablations that were performed by an unqualified technician.
According to the settlement agreement, Jena Medical, through its principals, Benjamin Weiss, Moishe Hoffman, and through Dr. Jason Schutlz, billed Medicare and TRICARE for radiofrequency ablations that were not medically necessary, not provided by a qualified provider, or both, during the period from January 1, 2018, through December 31, 2020. According to the allegations, patients referred to the unqualified technician as “doctor” and were led to believe he was qualified to perform their procedures. Jena Medical also permitted the washing and re-use of catheters that were designed for a single use.
“Protecting Medicare and TRICARE patients is paramount,” said U.S. Attorney Roger Handberg. “This civil settlement demonstrates our continuing commitment to hold accountable those who abuse the nation’s healthcare programs at the expense of the taxpayers.”
“Allegations of health care providers billing our federal health care programs for unnecessary services is of deep concern, especially if such services could potentially cause harm to patients,” stated Acting Special Agent in Charge Julie Rivera of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to protect the health of patients and the integrity of the federal health care programs serving them.”
“When actors within our health care system are focused on profit rather than patient care, it undermines the integrity of the medical decision-making process,” stated Special Agent in Charge Darrin K. Jones, DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “ DCIS will continue to work with our investigative partners to protect the funding entrusted to the Defense Health Agency which serves our military members and their families.”
The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by Relator Michael Lomonaco, a Doctor of Nursing Practice and former employee of Jena Medical. Dr. Lomonaco sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting private citizens to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the United States to intervene and prosecute the action. The Relator will receive over $300,000 of the proceeds from the settlement with the defendants.
This settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, the HHS Office of Inspector General, and the Defense Criminal Investigative Service. Assistant United States Attorney Jeremy R. Bloor led the investigation.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The case is captioned United States ex rel. Lomonaco v. Jena Medical Group, LLC et al., Case No. 6:20-cv-312-ORL-WWB. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Inmate Pleads Guilty to Threatening Federal JudgeRead the Press Release
Orlando, Florida – U.S. Attorney Roger B. Handberg announces that Jeziah Guagno (23) has pleaded guilty to mailing threatening communications to a federal judge. Guagno faces a maximum penalty of 10 years in federal prison. A sentencing date has not been set.
According to court documents, in May 2021, a federal judge in the Middle District of Florida received a threatening letter from M.S.—an inmate at the Santa Rosa Correctional Institution. The letter included violent threats to murder the judge and his wife. When interviewed, M.S. denied making the threats. Guagno, however, was also serving time in the same Florida prison as M.S. A subsequent DNA and fingerprint analysis by the FBI determined that Guagno’s DNA was on the envelope and his palmprint was on the letter. Known handwriting samples from Guagno also matched the handwritten threats in the letter. Further investigation revealed that the federal judge who had been threatened in the letter previously had dismissed a civil case filed by Guagno.
This case was investigated by the Federal Bureau of Investigation, the United States Marshals Service, and the Florida Department of Corrections. It is being prosecuted by Assistant United States Attorney Tyrie K. Boyer.
Indictment Charges District Man with First Degree Murder in Killing at the Navy Yard Metro StationRead the Press Release
WASHINGTON – An indictment, filed today in Superior Court in the District of Columbia, charges Tyriq Jamal Williams, 32, of Northwest Washington D.C, with first degree murder while armed in the Jan. 7, 2023, shooting death of 20-year-old Terry Clark, of Southeast Washington D.C., outside the entrance to the Navy Yard Metro Station. The indictment was announced today by U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
According to the indictment, Williams and a female companion exited a Green Line Metro train at the Navy Yard Station in Southeast, where they encountered Clark on the escalator leading to the station on Half Street. Clark was bouncing on the stairs and made a fist-pumping gesture with his right hand. Williams separated from his companion at the station exit and waited next to a cement column until Clark walked by him. Williams approached Clark and shot him once in the head. Then Williams turned and walked away in the direction of his companion. He returned to the Metro alone and boarded it again at the station, leaving the area on the Green Line train.
Police responded at 7:55 p.m. and found Clark lying on the sidewalk unconscious and unresponsive in front of the Metro station entrance. A single 9 mm casing was found a few feet south of the victim’s body. Clark was pronounced dead at 8:05 p.m.
The Capital Area Regional Fugitive Task Force arrested Williams on Jan. 20, 2023.
A conviction of first-degree murder while armed carries a statutory minimum sentence of 30 years in prison and a maximum of life.
This case is being investigated by the MPD. It is being prosecuted by Assistant U.S. Attorney John Interrante, of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Helena man admits possessing unregistered machine gunRead the Press Release
GREAT FALLS — A Helena man today admitted to a firearms crime after law enforcement found an unregistered machine gun, along with other firearms and silencers, during a search of his home, U.S. Attorney Jesse Laslovich said.
Justin Arthur Berger, 36, pleaded guilty to possession of an unregistered machine gun. Berger faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for March 20, 2024. Berger was detained pending further proceedings.
The government alleged in court documents that in December 2022, a friend of Berger’s notified the FBI in Helena that Berger had made statements about wanting to harm others in a mass shooting and that Berger expected he would be killed by law enforcement during a shootout. The friend also reported that Berger had several assault rifles and silencers. Law enforcement learned through an investigation that Berger indicated he was depressed, that he knew a lot about firearms and that he had manufactured a part what would convert an AR-15 into a fully automatic weapon. In addition, Berger had been seen firing rifles with the silencers attached at a makeshift shooting range. Law enforcement executed a search warrant on Berger’s home and located several firearms, including AR-style firearms, firearms components, a suspected short-barreled rifle, silencers and components for assembling silencers.
One of the firearms seized was determined to be a machine gun because it was capable of firing more than one round by a single function of the trigger. There was no record of Berger having registered a machine gun in the National Firearms Registration and Transfer Record.
Assistant U.S. Attorney Jeffrey K. Starnes is prosecuting the case. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and Helena Police Department conducted the investigation.
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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Hedge Fund Manager Pleads Guilty to Operating Multimillion Dollar Ponzi SchemeRead the Press Release
A Florida man pleaded guilty today in the Southern District of Ohio to using his hedge fund management company as part of a years-long Ponzi scheme.
According to court documents, Michael Wayne Williams, 48, of Miami, was the chief executive officer and investment manager of Highguard Capital and its affiliated entities, Guardian Opportunity Fund and Guardian Opportunity Management. Williams convinced victims to invest over $3 million in Guardian Opportunity Management and used their money for undisclosed and unauthorized purposes, including to settle civil lawsuits accusing him of fraud and to repay investors from discontinued funds that he previously managed.
In early February and March 2021, Williams convinced a Mississippi woman to invest $1,005,000 into Guardian Opportunity Management. Williams did not inform her that Guardian Opportunity Management’s principal investment vehicle, Guardian Opportunity Fund, had recently lost 90% of its assets under management and that Williams intended to use her money to repay other investors in Guardian Opportunity Management, who were threatening legal action against him.
Williams pleaded guilty to wire fraud and faces a maximum penalty of 20 years in prison. A sentencing date has not yet been set. 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, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office investigated the case.
Trial Attorney David A. Peters of the Criminal Division’s Fraud Section and Trial Attorney Elise Kent Bernanke, formerly of the Criminal Division, are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected].
Griffith Man Sentenced to 70 Months in PrisonRead the Press Release
HAMMOND- Allen Crouse, 47 years old, of Griffith, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after pleading guilty to being a felon in possession of a destructive device, announced United States Attorney Clifford D. Johnson.
Crouse was sentenced to 70 months in prison followed by 2 years of supervised release.
According to documents in the case, on July 21, 2021, law enforcement purchased from Crouse two destructive devices that he had manufactured. The destructive devices were intended to work as explosives or bombs and would have functioned as designed if detonated. His criminal history revealed ten prior felony burglary convictions between 1995 and 2002, and as such, he was prohibited from possessing the destructive device.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force and the Griffith Police Department. This case was prosecuted by Assistant United States Attorney Caitlin M. Padula.
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.
Gang Member Who Posed with Firearms on Snapchat Pleads GuiltyRead the Press Release
BOSTON – A Boston man pleaded guilty today to illegally possessing a firearm and ammunition while under house arrest for four state firearm charges.
Dumari Shakur Scarlett-Dixon, 22, pleaded guilty to being an unlawful drug user in possession of a firearm and ammunition. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Jan. 11, 2024.
A 2021 investigation into Heath Street, a violent Boston-area street gang, identified Scarlett-Dixon as a Heath Street member and the owner of a Snapchat account posting numerous videos and images of himself in possession of firearms. At the time of the conduct, Scarlett-Dixon was on pre-trial release for four separate state court cases of unlawful possession of a firearm. As a condition of his release, Scarlett-Dixon was on court-ordered home confinement with GPS monitoring at his grandmother’s residence in Weymouth.
During a September 2021 search of his grandmother’s residence in Weymouth, a Bersa 9-millimeter semi-automatic pistol, 59 rounds of ammunition and blunts of marijuana – a Schedule I controlled substance – were found in Scarlett-Dixon’s bedroom.The charge of being an unlawful drug user in possession of a firearm and ammunition carries a sentence of up to 10 years in prison, up to three years of supervised release and fine of $250,000 fine. 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; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Special assistance in the investigation was provided by the Boston, Quincy and Lynn Police Departments and the Suffolk County Sheriff’s Department. Assistant U.S. Attorney Christopher Pohl of the Narcotics & Money Laundering Unit is prosecuting the case.
The operation was conducted is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Four Men Convicted of Conspiracy and Schemes to Defraud the Small Business Administration, State Workforce Agencies, and Private LendersRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 17, 2023, defendants Aziz Hassan Bey, Letez Osiris Bey, Minister Zakar Ali, and Divine-Seven El were convicted after a week-long jury trial. A federal grand jury returned an indictment on August 23, 2022, charging the four defendants with conspiring to commit wire fraud, in violation of 18 U.S.C. § 1349, wire fraud, in violation of 18 U.S.C. § 1343, and mail fraud, in violation of 18 U.S.C. § 1341. Defendants Aziz Bey and Divine-Seven El were also charged with money laundering, in violation of 18 U.S.C. § 1957.
The evidence presented at trial showed that between June 2020 and July 2021, the four defendants participated in a conspiracy to attempt to obtain over $9.5 million in loans from the Small Business Administration (SBA) and private lenders, through the Economic Injury Disaster Loan (EIDL) program and Paycheck Protection Program (PPP). Each of the defendants filed multiple fraudulent EIDL and PPP loan applications. The defendants also engaged in a scheme to defraud the SBA into paying approximately $775,000 in EIDL loan proceeds to which the defendants were not entitled. To obtain those funds, the defendants submitted applications for businesses that were not operational and submitted false representations regarding the companies’ number of employees, gross revenues, and cost of goods sold.
Additionally, the evidence demonstrated that defendants Aziz Bey, Letez Bey, and Ali participated in a scheme to defraud state workforce agencies by submitting false and fraudulent applications for unemployment insurance (UI). As part of the scheme, the three defendants filed false UI applications in the State of Georgia. Aziz Bey and Ali received approximately $33,680 and $43,525, respectively, from Georgia, where they had not lived or worked. Defendant Letez Bey filed UI applications in the states of Illinois and California in the names of other individuals, and caused those states to mail debit cards containing UI funds to addresses used by Aziz Bey and Ali.
Letez Bey received hundreds of thousands of dollars in UI funds from unemployment claims in the names of others.
Defendants Aziz Bey, Ali, and El were also convicted of participating in a scheme to defraud lenders by submitting false information to the Wisconsin Department of Motor Vehicles (DMV) to remove liens that lenders held on vehicles, including a Land Rover, a BMW, and a Corvette. As a result, the defendants were able to keep for their own use or sell the vehicles without repaying the outstanding loans.
With the fraud proceeds they received, the defendants transferred funds to each other and purchased personal items, such as vehicles and jewelry. Defendants Aziz Bey and El were also convicted of conducting money laundering transactions. Aziz Bey used fraud proceeds to purchase a Maserati and to write a $43,000 check to El. El also used fraud proceeds to purchase a Porsche and to write a $60,000 check to himself.
The defendants are scheduled to be sentenced before United States District Court Judge J.P. Stadtmueller on February 1, 2024. They face up to 20 years’ imprisonment on the conspiracy and mail and wire fraud convictions and up to ten years’ imprisonment on the money laundering charges. They also face up to five years of supervised release.
“The jury’s verdict reflects the fact these defendants sought to enrich themselves at the expense of taxpayers across the country,” stated U.S. Attorney Haanstad. “In addition to fraud targeting private businesses, they sought to take unlawful advantage of programs meant to help individuals, businesses, and the entire economy survive the impact of the pandemic. I commend the hard work and relentless efforts of everyone involved in pursuing justice in this case.”
“This fraud scheme was dismantled through excellent collaboration between the FBI and our law enforcement partners.” Said FBI Special Agent in Charge Michael E. Hensle. “The FBI has an unwavering commitment to combat fraudulent activities and will ensure that those who seek personal gain through such schemes are held accountable.”
“The jury’s verdict affirms the U.S. Department of Labor, Office of Inspector General’s commitment to ensuring the integrity of the unemployment insurance program. We will continue working with our law enforcement partners to aggressively investigate these types of allegations,” said Irene Lindow, Special Agent in Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
The Federal Bureau of Investigation investigated this case, with valuable assistance from the U.S. Department of Labor, Office of Inspector General. Assistant United States Attorneys John P. Scully and Benjamin P. Taibleson prosecuted the case.
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Former Waynesburg Resident Pleads Guilty to Transportation of a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
PITTSBURGH, PA – A former resident of Waynesburg, PA, pleaded guilty in federal court to a charge of transportation of a minor with intent to engage in criminal sexual activity, United States Attorney Eric G. Olshan announced today.
James Jordan, age 31, pleaded guilty to one count before United States District Judge William S. Stickman.
In connection with the guilty plea, the court was advised that from January 11, 2022 until January 12, 2022, Jordan transported a minor from the Commonwealth of Pennsylvania to the State of West Virginia, with the intent that the minor engage in criminal sexual activity.
Judge Stickman scheduled sentencing for February 21, 2024, at 1:30 p.m. The law provides for a total sentence of not less than 10 years and not more than life in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, Jordan remains detained.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Department of Homeland Security—Pittsburgh, the Pennsylvania Office of Attorney General, the Pennsylvania State Police, the Waynesburg Police Department, and the Lewisburg (WV) Police Department conducted the investigation that led to the prosecution of Jordan.
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.
Former U.S. Capitol Police Officer Pleads Guilty to Violating an Individual’s Civil RightsRead the Press Release
WASHINGTON – Former United States Capitol Police (USCP) officer Thomas Smith, 46, pleaded guilty today to violating an individual’s civil rights by recklessly engaging in a dangerous pursuit and being deliberately indifferent to the danger he created. The plea was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne A. Jacobs, of the Washington Field Office’s Criminal and Cyber Division, and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.
Smith pleaded guilty to deprivation of rights under color of law. According to court documents, on the evening of June 20, 2020, Smith was on duty conducting security checks at the homes of members of Congress in the Georgetown neighborhood of Washington, D.C., when he began pursuing two individuals riding motorized cycles. Though USCP policies prohibit vehicular pursuits outside of the Capitol grounds, except in emergencies and upon supervisory approval, Smith conducted the pursuit without seeking such approval.
While following the motorcyclists closely, but without his emergency lights on, Smith’s USCP cruiser struck one of the motorcyclists at the intersection of Wisconsin Avenue and M Street, Northwest. The crash knocked the cyclist into the air before he hit the asphalt roadway. As the victim lay in the intersection unconscious, Smith drove his cruiser around the victim and left the scene of the collision. Contrary to USCP policies, Smith did not notify anyone of the incident, take any action to seek medical assistance for the victim or ensure that no further harm came to the victim as he lay on the road. Hours after the collision, Smith falsified several USCP records in an attempt to cover up the events related to the incident.
“Like all of our law enforcement partners, we know that the overwhelming majority of U.S. Capitol Police officers do their difficult and dangerous jobs honorably and lawfully,” said U.S. Attorney Mathew M. Graves for the District of Columbia. “But former officer Smith violated the Constitution and abused his position by recklessly engaging in a dangerous pursuit that resulted in an unnecessary collision that could have had devastating results. The U.S. Attorney’s Office is committed to protecting the civil rights of all District residents and to holding accountable individuals who violate those rights.”
“A federal law enforcement officer who abuses his authority by engaging in reckless and obstructive conduct not only violates the law, but also public trust,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “All police officials who deprive citizens of their civil rights will be held accountable. We will aggressively prosecute any law enforcement officer who violates the most basic constitutional rights of our citizens.”
“Contrary to the oath he took as a law enforcement officer and a government employee, Smith endangered and showed disregard for others’ lives,” said Special Agent in Charge Jacobs. “His guilty plea today demonstrates the FBI’s unwavering pursuit of justice on behalf of the American people."
Smith faces a maximum penalty of 10 years imprisonment. Sentencing is scheduled for January 22, 2024. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Washington Field Office investigated the case.
Assistant U.S. Attorney Gauri Gopal and former Assistant U.S. Attorney Kendra Briggs, previously investigated, indicted and prosecuted the case. Trial Attorneys Sanjay Patel and Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Timothy Visser for the District of Columbia are prosecuting the case.
Former U.S. Capitol Police Officer Pleads Guilty to Civil Rights Charge Related to Hit-And-Run Traffic CrashRead the Press Release
A former United States Capitol Police (USCP) officer pleaded guilty today to violating an individual’s civil rights by recklessly engaging in a dangerous pursuit and being deliberately indifferent to the danger he created.
Thomas Smith, 46, pleaded guilty to deprivation of rights under color of law. According to court documents, on the evening of June 20, 2020, Smith was on duty conducting security checks at the homes of members of Congress in the Georgetown neighborhood of Washington, D.C., when he began pursuing two individuals riding motorized cycles. Though USCP policies prohibit vehicular pursuits outside of the Capitol grounds, except in emergencies and upon supervisory approval, Smith conducted the pursuit without seeking such approval.
While following the motorcyclists closely, but without his emergency lights on, Smith’s USCP cruiser struck one of the motorcyclists at the intersection of Wisconsin Avenue and M Street, Northwest. The crash knocked the cyclist into the air before he hit the asphalt roadway. As the victim lay in the intersection unconscious, Smith drove his cruiser around the victim and left the scene of the collision. Contrary to USCP policies, Smith did not notify anyone of the collision, take any action to seek medical assistance for the victim or ensure that no further harm came to the victim as he lay on the road. Hours after the collision, Smith falsified several USCP records related to the incident.
“A federal law enforcement officer who abuses his authority by engaging in reckless and obstructive conduct not only violates the law, but also public trust,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to aggressively prosecute any law enforcement officer, including those who serve within the ranks of federal law enforcement, when they violate the most basic constitutional rights of our citizens.”
“Like all of our law enforcement partners, we know that the overwhelming majority of U.S. Capitol Police officers do their difficult and dangerous jobs honorably and lawfully,” said U.S. Attorney Mathew M. Graves for the District of Columbia. “But former officer Smith violated the Constitution and abused his position by recklessly engaging in a dangerous pursuit that resulted in an unnecessary collision that could have had devastating results. The U.S. Attorney’s Office is committed to protecting the civil rights of all District residents and to holding accountable individuals who violate those rights.”
“Contrary to the oath he took as a law enforcement officer and a government employee, Smith endangered and showed disregard for others’ lives,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “His guilty plea today demonstrates the FBI’s unwavering pursuit of justice on behalf of the American people."
Smith faces a maximum penalty of 10 years imprisonment. Sentencing is scheduled for Jan. 22, 2024. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Washington Field Office investigated the case.
Trial Attorneys Sanjay Patel and Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Timothy Visser for the District of Columbia are prosecuting the case.
Former Oregon Corrections Nurse Sentenced to 30 Years in Federal Prison for Sexually Assaulting Nine Female InmatesRead the Press Release
A former Oregon Department of Corrections employee was sentenced yesterday for sexually assaulting nine female inmates while serving as a nurse at the Coffee Creek Correctional Facility, Oregon’s only women’s prison.
Tony Daniel Klein, 38, of Clackamas County, Oregon, was sentenced to 30 years in prison and five years of supervised release. A restitution hearing will be held at a later date.
“The sentence in this case should send a significant message to any official working inside jails and prisons across our country, including those who provide medical care, that they will be held accountable when they sexually assault women inmates in their custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Women detained inside jails and prisons should be able to turn to medical providers for care and not subjected to exploitation by those bent on abusing their power and position. We will listen to and investigate credible allegations put forward by people who are sexually assaulted and, where appropriate, bring federal prosecutions. The Justice Department stands ready to hold accountable those who abuse their authority by sexual assaulting people in their custody and under their care.”
“Today’s sentence sends a clear message that using a position of authority to prey on individuals in custody will never be tolerated by the Justice Department,” said U.S. Attorney Natalie Wight for the District of Oregon. “Holding Tony Klein accountable for his crimes would not have been possible without the courage and resolve of the women he abused and the dedication of our partners at the FBI and Civil Rights Division.”
“We know this prison sentence cannot undo the trauma Tony Klein inflicted on numerous victims, but we hope this brings them one step closer to healing,” said Special Agent in Charge Kieran L. Ramsey of the FBI Portland Field Office. “As a state prison nurse, Klein abused his position and abused multiple women, violating the public’s trust, while doing everything he could to avoid being caught. The investigators and prosecutors should be applauded for their efforts to hold Klein accountable, but we recognize this lengthy sentence is also because of a group of brave women who came forward and helped ensure that Klein was held accountable for being a sexual predator within Coffee Creek Correctional Facility.”
According to court documents, from 2010 until January 2018, Klein served as a nurse at the Coffee Creek Correctional Facility in Wilsonville, Oregon. In his position, Klein interacted with female inmates who either sought medical treatment or worked as orderlies in the prison’s medical unit. Aided by his access to the women and his position of power as a corrections employee, Klein sexually assaulted or engaged in nonconsensual sexual conduct with many female inmates entrusted to his care.
By virtue of his position as a medical provider, Klein was often alone with his victims and assaulted many before, during or after medical treatment. For women who worked in the medical unit, Klein manufactured reasons to get them alone in secluded areas such as medical rooms, janitor’s closets or behind privacy curtains. Klein made it clear to his victims that he was in a position of power over them, and that they would not be believed if they tried reporting his abuse. Fearing punishment if they fought back against or reported his misconduct, most of Klein’s victims submitted to his unwanted advances or endured his assaults.
On March 8, 2022, a federal grand jury in Portland returned an indictment charging Klein with depriving his victims of their constitutional right not to be subjected to cruel and unusual punishment by sexual assault. The indictment also charged Klein with perjury.
On July 25, a federal jury in Portland found Klein guilty of 17 counts of depriving his victims of their constitutional right not to be subjected to cruel and unusual punishment by sexual assault and four counts of perjury.
The FBI Portland Field Office investigated the case.
Trial Attorney Cameron A. Bell of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Gavin W. Bruce for the District of Oregon prosecuted the case. Assistant U.S. Attorney Hannah Horsley for the District of Oregon assisted the trial team.
Former NASCAR Team Owner Is Indicted on Federal ChargesRead the Press Release
CHARLOTTE, N.C. – Federal charges have been filed against a former NASCAR team owner, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A Charlotte grand jury returned a bill of indictment, charging Ronald Devine, 67, of Burke, Virginia, with four counts of failure to pay payroll taxes.
Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, Devine was the owner and President of BK Racing, LLC (BK Racing), which operated a NASCAR racing team and owned two NASCAR charters. As BK Racing’s owner, Devine exercised control over BK Racing’s financial affairs, including having sole signature authority and control over BK Racing’s bank accounts, directing and
authorizing payment of BK Racing’s bills, and authorizing the filing and payment of BK Racing’s trust fund taxes, commonly referred to as payroll taxes.
Payroll taxes are withheld from employees’ gross pay and are used by the government to fund Social Security and Medicare, and also include the income taxes withheld from the employees’ paychecks. Employers are also required to make contributions to trust fund taxes matching the amounts withheld from their employees’ pay, and to file quarterly an Employer’s Quarterly Federal Tax Return, Form 941, indicating payment of the relevant taxes.
The indictment alleges that, starting in 2012, Devine caused BK Racing to fail to account for and pay over hundreds of thousands of dollars in payroll taxes. For example, according to the indictment, in 2017, Devine allegedly failed to pay over more than $390,000 in payroll taxes due to the IRS. The indictment further alleges that, between 2012 and 2017, instead of using the funds held in trust to pay for payroll taxes due, Devine transferred more than $2 million to other businesses and entities that he owned and controlled and used some of the funds to pay for BK Racing’s expenses such as rent, utilities, and vendor bills.
Devine will have his initial appearance in federal court in Charlotte. The charge of failure to truthfully account for and pay over trust fund taxes carries a maximum penalty of five years in prison and a $250,000 fine for each of the four counts in the indictment.
The charges against Devine are allegations and the defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King commended IRS-CI, the FBI, and USPIS for their investigation of the case.
Assistant U.S. Attorneys Caryn Finley and Daniel Ryan of the Office in Charlotte are prosecuting the case.
Former FBI Special Agent and D.C. Real Estate Developer Sentenced for Role in Bribery SchemesRead the Press Release
WASHINGTON – David Paitsel, 42, a former FBI agent, and Brian Bailey, 53, a D.C. real estate developer were sentenced today on bribery and conspiracy charges for their role in schemes involving confidential information held by the D.C. Department of Housing and Community Development, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne A. Jacobs of the Washington Field Office’s Criminal and Cyber Division, and Daniel W. Lucas, Inspector General for the District of Columbia.
Paitsel, a resident of North Carolina, was sentenced to 24 months in prison for each count to run concurrently, 24 months of supervised release, $100 special assessment, and ordered to pay a $10,600 forfeiture money judgment. Bailey, of Upper Marlboro, Maryland, was sentenced to 48 months in prison for each count to run concurrently, 24 months of supervised release, $100 special assessment, and a $250,000 fine. Both defendants were sentenced by U.S. District Judge Colleen Kollar-Kotelly. A jury convicted both defendants of bribery and conspiracy charges on October 7, 2022.
Bailey was found guilty of giving thousands of dollars in bribes to Dawne Dorsey, a program specialist with the District of Columbia Department of Housing and Community Development (DHCD) in exchange for confidential, un-redacted Tenant Opportunity to Purchase Act (TOPA) offer of sale notices, which included the names of tenants holding TOPA rights.
TOPA provides tenants living in the District of Columbia with the right to purchase their residence should the owner decide to sell the property. Under TOPA, tenants can re-assign their right to purchase to a third party. TOPA requires the owner (seller) to provide the District of Columbia Department of Housing and Community Development with offer of sale notices before the proposed real estate transaction. The offer of sale notices include, among other things, information not released to the public, such as the names of tenants residing at the property
In a second part of the scheme, Paitsel and Bailey were both found guilty of one count of bribery and one count of conspiracy. Specifically, Bailey paid Paitsel bribes to look up the contact information of the tenants holding TOPA rights, which he did using a database he had special access to as an FBI Agent.
The District of Columbia government employee, Dawne Dorsey, 40, pleaded guilty to bribery in June 2019. She is scheduled to be sentenced on November 6, 2023. In a related case, Frederick Silvers of Washington, D.C., pleaded guilty to bribery and was sentenced to 5 months’ incarceration for bribes paid to Dorsey.
This case was investigated by the FBI’s Washington Field Office and the District of Columbia Office of the Inspector General.
The trial of the case was prosecuted by Assistant U.S. Attorneys Elizabeth Aloi and John Borchert, with assistance from Paralegal Specialists Lisa Abbe and Quiana Dunn-Gordon of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
Former Church Employee Sentenced to Pay Restitution and Serve Two Years in Federal Prison for Defrauding Church Out of More Than $450,000Read the Press Release
OKLAHOMA CITY – Yesterday, DARLA BRALLEY, 59, of Oklahoma City, was sentenced to serve 24 months in federal prison for embezzling more than $450,000 from St. Paul The Apostle Catholic Church, announced U. S. Attorney Robert J. Troester.
On August 17, 2022, Bralley was charged by Information with wire fraud, and making and filing a false tax return. According to the Information, beginning in early 2014 and continuing through at least January 2020, Bralley devised a scheme to defraud and obtain money from St. Paul. Bralley was employed as payroll administrator for St. Paul during this period and had the authority to issue checks for authorized expenses on behalf of the church. The information alleges Bralley issued approximately 198 unauthorized checks, drawn from St. Paul’s checking account, to pay for various personal items including personal credit card payments, utilities, and living expenses. Bralley also made approximately 1,068 fraudulent, unauthorized transfers from the St. Paul checking account to pay her personal expenses. In all, Bralley defrauded St. Paul out of approximately $451,177.54.
The Information also alleges that on her 2018 U. S. Individual Income Tax Return, Bralley reported a total income that was substantially lower than what she received during the year as a result of the fraud.
On September 29, 2022, Bralley pleaded guilty to the two-count Information. As part of her plea, Bralley admitted to embezzling 451,177.54 from the church and she further admitted that she did not declare those funds on her annual tax returns.
At the sentencing hearing Tuesday, U. S. District Judge Scott L. Palk sentenced Bralley to serve 24 months in federal prison and ordered Bralley to pay restitution in the amount of $544,173.54. In announcing the sentence, Judge Palk noted that $451,177.54 would be paid to St. Paul, and $92,996.00 would be paid to the IRS.
The investigation was conducted by agents from the Internal Revenue Service – Criminal Investigation, the FBI Oklahoma City Field Office, and the United States Secret Service. Assistant U. S. Attorney Charles Brown prosecuted the case.
Florida Woman’s 10-year Sentence Ends Drug Conspiracy CaseRead the Press Release
HARRISONBURG, Va. – A Florida woman, the ninth and final defendant to be sentenced as part of a large methamphetamine conspiracy, was sentenced this week to 10 years in federal prison.
Jacqueline Tatiana Cuellar, 53, of Orlando, Florida, was convicted along with three other co-defendants by a Harrisonburg jury of conspiring to distribute and possession with intent to distribute 50 grams or more of actual methamphetamine or 500 grams or more of methamphetamine mixture.
In addition to Cuellar, Stephen “City” Purks, 36, of King George, Virginia, Carlos “C-Lo” Bariola, 35, of Hialeah, Florida, and Natassia “Prima” Kimble, 32, of Hialeah, Florida, were tried by jury and convicted.
In July 2023, Bariola, Purks, and Kimble were sentenced for their roles in the conspiracy: Bariola was sentenced to 27 years, Purks to 25 years, and Kimble to 10 years.
Co-defendants Jessica Grote, 37, of Jacksonville, Florida, Ashlyn Gates, 35, of Baker, West Virginia, Stephanie Butler, 28, of Winchester, Virginia, April Mosley, 43, of Jacksonville, Florida, and Catherine Rec, 48, of Newport News, Virginia, all pleaded guilty for their roles in the conspiracy.
According to court documents and evidence presented during the trial, both Purks and Bariola are career criminals who were serving time in state prison in Florida. During the life of the conspiracy, Purks and Bariola, organized and led the methamphetamine conspiracy from inside the Florida Department of Corrections using women they had recruited from outside the jail. The two men ran the operation using contraband cellphones, one of which was located in Purk’s anal cavity.
The methamphetamine was eventually trafficked and sold into the greater Winchester area.
United States Attorney Christopher R. Kavanaugh, Special Agent in Charge of the DEA’s Washington Division Jared Forget, and Damon Wood, Inspector in Charge of the U.S. Postal Inspection Service – Washington Division, made the announcement.
The Drug Enforcement Administration - Winchester Resident Office, the United States Postal Inspection Service - Office of the Inspector General, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Northwest Virginia Regional Drug and Gang Task Force (which is comprised of Special Agents, Investigators, and Detectives from the Frederick County Sheriff’s Office, the Clarke County Sheriff’s Office, the Shenandoah County Sheriff’s Office, the Page County Sheriff’s Office, the Winchester Police Department, the Front Royal Police Department, the Strasburg Police Department, the Luray Police Department, and the Virginia State Police) investigated the case.
The Drug Enforcement Administration in Jacksonville, Florida, Miami, Florida, Orlando, Florida, and the Florida Department of Corrections also contributed substantially to the investigation.
Assistant U.S. Attorney Kelly McGann and former Assistant U.S. Attorney Heather L. Carlton prosecuted the case.
Firearms Trafficker Sentenced to 15 Years in Prison for Supplying Weapons and Ammunition to Sinaloa CartelRead the Press Release
NEWS RELEASE SUMMARY – October 18, 2023
SAN DIEGO – Alfredo Lomas Navarrete, a prolific firearms trafficker, was sentenced in federal court today to 15 years in custody for his role in supplying hundreds of high-powered weapons and tens of thousands of rounds of ammunition to the Sinaloa Cartel.
This case is part of a long-running investigation targeting the Valenzuela Transnational Criminal Organization (TCO), which is a significant component of the Sinaloa Cartel. The Valenzuela TCO is one of the largest importers of cocaine into the United States. The TCO sources cocaine and other controlled substances (including fentanyl, heroin, methamphetamine, and marijuana) from South America and Mexico, transports the drugs to multiple locations along the U.S.-Mexico border using commercial trucking companies, smuggles the narcotics into the country, and distributes them throughout the U.S. The TCO then smuggles the bulk cash proceeds from its drug trafficking activities back to the TCO’s leadership in Mexico.
According to court records, throughout 2020, the Valenzuela TCO, including one of its leaders, Jorge Alberto Valenzuela Valenzuela (“Jorge”), was engaged in violent conflict with another component of the Sinaloa Cartel led by Ivan Archivaldo Guzman-Salazar. During this conflict, Jorge’s brother and previous TCO leader, Gabriel Valenzuela-Valenzuela, was killed. This led the Valenzuela TCO to procure large quantities of firearms, ammunition, tactical gear, armored vehicles, and ballistic vests. A considerable number of these items were sourced from within the United States and clandestinely smuggled into Mexico, using numerous arms trafficking networks.
During the multi-year investigation, agents identified Alfredo Lomas Navarrete as a major firearms trafficker for the TCO. Agents recovered hundreds of messages between Jorge and Lomas in which they discussed firearms trafficking. Lomas worked closely with Jorge and other high-ranking organization members to supply hundreds of firearms to the TCO. These firearms ranged from .50 caliber rifles, submachine guns, and grenade launchers, to assault rifles (AK-47s, AR-15s, FN SCARs) and handguns. In addition to the weapons, Lomas and his co-conspirators supplied tens of thousands of rounds of ammunition to the TCO. Some of these weapons and ammunition were acquired in the United States, including in California, Arizona, and Nevada, and then smuggled through the Ports of Entry in San Diego and Arizona into Mexico
To date, this investigation has resulted in the charging of 109 defendants and the seizure of approximately 2,000 kilograms of cocaine and fentanyl, over $16 million in cash, and 21,000 rounds of ammunition.
Lomas pleaded guilty in April 2023 to conspiring to import cocaine, distribute cocaine, commit money laundering, and to smuggle goods from the United States.
“The amount of cash, ammunition, and narcotics seized in this case is staggering,” said U.S. Attorney Tara McGrath. “The collaboration in this case sends a clear message that the U.S. Attorney’s Office will attack every facet of drug trafficking organizations from money to drugs to firearms. We will stay after it for as long as it takes to bring them to justice.”
“The Venezuelan transnational criminal organization has brought death and suffering to countless people through their once prosperous criminal enterprise,” said Chad Plantz, special agent in charge for HSI San Diego. “The sentencing of this firearms trafficker sends a resounding message to traffickers and criminals around the world that HSI and the law enforcement community will vehemently pursue those who seek to harm not only Americans, but humanity as a whole with their brutality and deadly drugs.”
“Drug cartels use drug proceeds to purchase weapons and ammunition, fueling violence in our communities,” said DEA Special Agent in Charge Shelly Howe. “DEA and our federal, state, and local partners will continue to hold drug traffickers and the cartels responsible for the carnage and destruction they cause.”
“The sentencing of Mr. Navarrete is a major milestone in federal law enforcement’s efforts to disrupt and dismantle illegal trafficking operations of all kinds,” said FBI San Diego Special Agent in Charge, Stacey Moy. “We are proud to support our law enforcement partners in all efforts that target and take down crime organizations that threaten the citizens of the United States of America.”
“Mr. Navarrete’s enablement of violence on both sides of the U.S.-Mexico border is over,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Crime leaves a money trail, and when we pool our resources we are able to find the evidence necessary to lead to conviction. Navarrete is going to prison because of a well-coordinated joint investigation we are proud to have been part of.”
This case is being prosecuted by Assistant U.S. Attorneys Matthew J. Sutton and Mikaela Weber.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
DEFENDANT Case Number 21-cr-2960-AGS
Alfredo Lomas Navarrete Age: 33 Culiacan, Mexico
SUMMARY OF CHARGES
International Conspiracy to Distribute Cocaine for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963.
Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.
Conspiracy to Import Cocaine, in violation of Title 21 U.S.C. §§ 952, 960 and 963.
Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.
Conspiracy to Distribute Cocaine, in violation of Title 21 U.S.C. §§ 841(a)(1) and 846.
Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.
Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. 1956(h).
Maximum Penalty: Twenty years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved.
Conspiracy to Smuggle Goods, in violation of Title 18, U.S.C. §§ 371 and 554(a).
Maximum Penalty: Five years in prison, fine of $250,000.
AGENCY
Homeland Security Investigations
Drug Enforcement Administration
Federal Bureau of Investigation
Internal Revenue Service - Criminal Investigation
United States Marshals Service
Customs and Border Protection, Office of Field Operations
Customs and Border Protection, Office of Border Patrol
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
San Diego County Sheriff’s Department
San Diego Police Department
Border Crime Suppression Team
San Diego County District Attorney’s Office
Felon Sentenced to 4 Years in Prison for the Illegal Possession of a Firearm and AmmunitionRead the Press Release
CONCORD – A Vermont man was sentenced today in federal court in Concord for the unlawful possession of a firearm and ammunition, First Assistant U.S. Attorney Jay McCormack announces.
Brian Woodburn, 40, was sentenced by U.S. District Court Judge Samantha D. Elliott to 48 months in prison and three years of supervised release. On May 11, 2023, Woodburn pleaded guilty to being a felon in possession of a firearm and ammunition.
“The defendant’s previous felony conviction took away his right to own a gun,” said First Assistant U.S. Attorney John J. McCormack. “Our office will continue to enforce the laws that keep dangerous weapons out of the hands of those who are prohibited from having them.”
“Today’s sentence makes it clear that criminals who repeatedly break the law and continue to possess illegal firearms and ammunition, will be held accountable,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Our Major Offender Task Force and our law enforcement partners are hard at work every day, sharing resources and intelligence with the goal of making our communities safer.”
Woodburn was found passed out in the driver’s seat of a car on a campground in Lancaster, New Hampshire. He consented to a search of his car, and law enforcement recovered a 9 mm pistol, ammunition, brass knuckles, and drug paraphernalia, including substances that tested positive for suboxone, buprenorphine, and fentanyl.
The Federal Bureau of Investigation and Lancaster Police Department led the investigation. Assistant U.S. Attorney Alexander S. Chen 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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