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29 November 2023
Rare, Wrongfully Obtained Manuscript to Be Returned to PeruRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero and FBI Philadelphia Special Agent in Charge Wayne A. Jacobs announced today that the Rosenbach Museum & Library (“the Rosenbach”) voluntarily transferred to the custody of the FBI a sixteenth-century manuscript for return to the Archivo General de la Nación del Perú, the Peruvian national archives. This rare six-page document, dated June 28, 1599, is a contract for the formation of the first theatrical company in the Americas in Lima, Peru and had been in the Rosenbach’s collection for almost a century.
In 2017, at the request of the Republic of Peru and in coordination with the Bureau of Educational and Cultural Affairs of the United States Department of State, the FBI Art Crime Team and the United States Attorney’s Office began an investigation as to whether these manuscript pages in the Rosenbach collection had been wrongfully removed from a sixteenth-century bound volume in the Peruvian national archives. The Rosenbach cooperated fully in this investigation and concluded that the manuscript, which had been purchased in the 1920s by its founder, Dr. A.S.W. Rosenbach, had been removed from the bound volume in the archives at some time prior to Dr. Rosenbach’s purchase.
“Thanks to the dedicated work and coordination of our Office and our FBI partners, this manuscript will be returned to its rightful place in the Peruvian national archives,” said U.S. Attorney Romero.
“It’s always incredibly gratifying when the FBI’s Art Crime Team is able to recover precious cultural property,” said Wayne Jacobs, Special Agent in Charge of the FBI’s Philadelphia Division. “We look forward to the day when this rare document is fully repatriated to the government of Peru and its archives. This case exemplifies the Bureau’s continued commitment to preserving the pieces of cultural heritage that help bring history to life.”
The United States Attorney’s Office and the FBI acknowledge the cooperation and assistance of the Rosenbach in this matter and are making arrangements for the repatriation of the manuscript pages to the Republic of Peru.
Queens Pharmacist Sentenced to 60 Months in Prison for Illegally Distributing Oxycodone and Filing False Tax ReturnsRead the Press Release
Today, Daniel E. Russo was sentenced to 60 months in prison by United States District Judge Dora L. Irizarry for conspiracy to distribute and possess with intent to distribute oxycodone, distribution and possession of oxycodone, and nine counts of filing false personal and corporate tax returns. In addition to the terms of imprisonment, Judge Irizarry ordered Russo to serve three years of supervised release. Immediately prior to the sentencing, the defendant paid over $400,000 in restitution. Russo pleaded guilty in February 2023.
Breon Peace, United States Attorney for the Eastern District of New York, David A. Hubbert, Deputy Assistant Attorney General of the Justice Department’s Tax Division, Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the charges.
“From pharmacist to pill pusher, Daniel Russo betrayed his years of medical training to pocket dirty money in return for illegally selling enormous amounts of oxycodone, which was invariably later sold on the streets,” stated United States Attorney Peace. “Today’s sentence sends a message to all would-be drug dealers, especially healthcare professionals, that the illegal distribution of drugs will be punished.”
DEA Special Agent in Charge Frank Tarentino said, “Through today’s sentencing and prior plea, it is apparent that Daniel Russo will spend the next five years contemplating his ill-fated decision to use his business to illegally distribute prescription medication while enabling opioid addiction throughout New York. The investigation and prosecution meticulously brought to justice Russo’s tax fraud and his role in a major drug trafficking conspiracy. I commend our partners in the DEA’s Long Island Division Office Tactical Diversion Squad, the IRS-CI New York, and the US Attorney’s Office Eastern District of New York for their diligent work.”
“Russo distributed highly addictive drugs to the community he served, completely disregarding his sworn code of ethics as a pharmacist. And while using his position to commit criminal acts, he then failed to report and pay taxes on the proceeds of his illicit sales. It is with strong law enforcement partnerships that we were able to ensure Russo is now facing justice for his actions,” stated IRS-CI Special Agent-in-Charge Fattorusso.
As set forth in the indictment, court filings and during court proceedings, Russo owned and operated Russo’s Pharmacy in Far Rockaway, Queens. Between March 2011 and June 2014, Russo conspired with others, including medical professionals and employees, to fill fraudulent prescriptions for oxycodone and dispense thousands of oxycodone pills in return for hundreds of thousands of dollars in cash. Over the course of the conspiracy, Russo’s co-conspirators delivered hundreds of fraudulent oxycodone prescriptions to Russo’s Pharmacy and would then retrieve the filled prescriptions—written out in various patients’ names—so that they could be dispensed elsewhere. Oxycodone illegally distributed by Russo led to at least one non-fatal overdose. Russo accepted payment mostly in cash for the prescriptions. Russo then hid the proceeds from the scheme and filed false corporate income tax returns for his pharmacy for the years 2013 through 2016, omitting the illegal proceeds. Russo also filed false individual income tax returns for the years 2012 through 2016. In total, Russo failed to report over $1 million in earnings, much of it generated from his oxycodone distribution scheme. As a result, Russo fraudulently underreported his tax obligations on those earnings by over $400,000.
More than a dozen physicians for whom Russo filled prescriptions have since been convicted of crimes related to the distribution of oxycodone.
The government’s investigation was led by the DEA’s Long Island Tactical Diversion Squad, comprising agents and officers of the DEA, Nassau County Police Department, Suffolk County Police Department, Port Washington Police Department and Rockville Centre Police Department. The DEA Tactical Diversion Squad also worked in conjunction with officers and agents of the U.S. Department of Health & Human Services’ Office of the Inspector General and New York City Department of Investigation.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the Nassau and Suffolk County Police Departments, the New York City Police Department, the New York State Police and other key federal, state and local government partners launched the initiative to mount a comprehensive response to what the United States Department of Health and Human Services Center for Disease Control and Prevention called an epidemic increase in the abuse of so-called opioid analgesics. To date, the initiative has brought over 160 federal and local criminal prosecutions including the prosecution of 20 health care professionals; taken civil enforcement actions against a hospital, a pharmacy and pharmacy chain; removed prescription authority from numerous rogue doctors and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Francisco J. Navarro, Nomi D. Berenson and Andrew D. Wang and Trial Attorney Michael C. Vasiliadis of the Tax Division are in charge of the prosecution.
The Defendant:
DANIEL E. RUSSO
Age: 44
Cedarhurst, New YorkE.D.N.Y. Docket No. 20-CR-23 (DLI)
Previously Convicted Bank Robber Pleads Guilty to Committing Three New Bank RobberiesRead the Press Release
Baltimore, Maryland – Kevin Maurice Lawson, age 55, of Baltimore Maryland, pleaded guilty today to committing three armed bank robberies, all while he was in a residential re-entry program serving the remainder of his federal sentence for a 2004 conviction for bank robbery.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation (“FBI”), Baltimore Field Office; and Commissioner Richard Worley of the Baltimore Police Department (“BPD”).
According to his guilty plea, Lawson committed three armed bank robberies in Baltimore between June 6 and July 18, 2022, utilizing a black air gun in each robbery. In the first robbery on June 6, 2022, Lawson robbed a bank in the 100 block of East Baltimore Street in Baltimore. As he did in each of the robberies, Lawson entered the bank wearing a surgical mask and gloves. He approached a bank employee seated at a desk on the banking floor, displayed what appeared to be a dark semiautomatic handgun in his waistband, and ordered the employee to the teller line. Lawson held the employee against the teller glass and demanded money from the victim teller, who passed cash to Lawson. Lawson placed the money in a brown paper bag contained within a white plastic bag, and fled the bank on foot.
As detailed in his plea agreement, on June 27, 2022, Lawson robbed a bank in the 5400 block of Harford Road in Baltimore. Lawson approached two bank employees seated at desks on the banking floor, displayed the handgun in his waistband, and ordered the employees to the teller line. Lawson ordered the first bank employee to demand cash from the victim teller who then passed cash to the first employee. Lawson placed the money in a brown paper bag contained within a white plastic bag and ordered the first bank employee to unlock a side door leading to Hamilton Avenue. Lawson fled on foot eastbound on Hamilton Avenue.
In the third instance, on July 18, 2022, Lawson robbed a bank in the 3200 block of West North Avenue in Baltimore. Lawson rushed a security guard, and repeatedly struck her on her head and other parts of her body with his weapon as he ordered bank employees to provide him with cash. Throughout the course of the assault of the security guard, Lawson attempted to disarm her. Bank employees behind the teller line, fearing for the safety of the security guard and their own safety, passed cash through the teller line barrier glass and called to Lawson. Lawson disengaged from the guard and went to the counter to get the money. The guard recovered from the ground and fired rounds from her duty weapon at Lawson before the weapon jammed and Lawson fled the scene in a gray Kia. BPD patrol units located the vehicle and attempted to initiate a stop, but Lawson got away. Officers briefly lost view of the vehicle before locating it crashed into the exterior wall of a vacant rowhome.
A search of the Kia recovered clothing and gloves identical to that worn in the bank robberies, as well as documents linked to Lawson including a Federal Bureau of Prisons inmate identification card. Lawson was arrested on July 22, 2022. Further investigation revealed that in 2003, Lawson had robbed the banks on West North Avenue and Harford Road.
Lawson faces a maximum sentence of 25 years in federal prison for bank robbery. U.S. District Judge Brendan A. Hurson has scheduled sentencing for March 5, 2024, at 10:30 a.m.
U.S. Attorney Erek L. Barron commended the FBI and BPD for their work in the investigation. Mr. Barron also thanked Assistant United States Attorney Michael Aubin, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Pittsburgh Man Sentenced to 25 Years in Prison for Violent Robbery Spree and Firearms ViolationsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, PA has been sentenced in federal court to a total of 25 years of imprisonment followed by 5 years of supervised release for robbery, attempted robbery, and firearms violations, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Eric Jones, age 34.
According to information presented to the court, Jones committed four armed robberies of several Pittsburgh-area businesses in a nine-day period in March 2022. On March 6, 2022, Jones robbed the Fox’s Pizza on Allegheny River Boulevard in Oakmont, PA. During that robbery, he shot the owner of this business several times. The victim from this robbery suffered serious injuries. On March 10, 2022, Jones robbed the Sunoco gas station and convenience store on Hulton Road in Verona, PA, again using a firearm during the robbery.
On March 15, 2022, Jones attempted to rob the Family Dollar on Frankstown Avenue in Pittsburgh, PA. During this robbery, Jones fired a round from his pistol toward the rear of the store. On March 15, 2022, around 30 minutes after the attempted robbery of the Family Dollar, Jones attempted to rob the Edgewood Avenue Express on Edgewood Avenue in Edgewood, PA. During this attempted robbery, Jones shot the store owner once and attempted to shoot him again, but his gun jammed. The bullet grazed the store owner, but it did not cause serious injury.
Jones is a convicted felon and was not permitted to possess a firearm or ammunition.
Prior to imposing sentence, Judge Wiegand emphasized the seriousness of the defendant’s conduct, and the impact it had on the victims and their families.
Assistant United States Attorney Doug Maloney prosecuted this case on behalf of the government.United States Attorney Olshan commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the Allegheny County Police Department; the Pittsburgh Bureau of Police; the Penn Hills Police Department; the Oakmont Police Department; the Edgewood Police Department, and the Allegheny County District Attorney’s Office for their extensive and collaborative investigation leading to the successful prosecution of Jones.
Pearl River Man Sentenced to over Five Years in Prison for Assault with a Dangerous Weapon by a Habitual Offender of Domestic ViolenceRead the Press Release
Jackson, Miss. –A Pearl River man was sentenced to 63 months in federal prison for Assault with a Dangerous Weapon and for being a Habitual Offender of Domestic Violence.
According to court documents, Lee Garrick McMillan, 31, admitted to assaulting his wife while in the Pearl River Community of the Mississippi Band of Choctaw Indians. McMillan fractured his wife’s ribs by kicking her with steel toed boots on May 20, 2023. This assault marked the third domestic violence incident perpetrated by McMillan against an intimate partner.
U.S. Attorney Todd Gee and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation made the announcement.
According to the National Network to End Domestic Violence, American Indian women residing on Indian reservations suffer domestic violence and physical assault at rates far exceeding women of other ethnicities and locations.
The Choctaw Police Department and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Kevin J. Payne and Special Assistant U.S. Attorney Brian K. Burns prosecuted the case.
Pasco Woman Sentenced to 9 Years for Trafficking Rainbow-Colored Fentanyl PillsRead the Press Release
Richland, Washington- Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Amy Lynn Loza, age 38, of Pasco, Washington was sentenced after pleading guilty to Possession with Intent to Distribute 400 Grams or More of a Mixture of a Substance Containing a Detectable Amount of Fentanyl. United States District Judge Mary K. Dimke imposed a sentence of 108 months imprisonment to be followed by 5 years of supervised release.
According to court documents, in October of 2022, the Tri-Cities Metro Drug Task Force and the Drug Enforcement Administration (DEA) began investigating several fentanyl traffickers operating in the Tri Cities. Investigators developed information that Loza had recently purchased several thousand fentanyl laced pills.
Agents obtained search warrants for two locations used by Loza – a home in Richland and the bedroom of a home in Kennewick. During those searches, agents located more than 14,000 rainbow- colored fentanyl pills and well as more than a pound of meth. Agents also located scales, baggies, and drug ledgers belonging to Loza. A loaded firearm was also found at the home in Richland.
When contact was made, Loza admitted to investigators that she had been involved in trafficking fentanyl and had purchased 17,000 pills in the last week.
U.S. Attorney Waldref stated, “Fentanyl has taken too many lives across the United States and right here in our community. Every day the Metro Drug Task Force and DEA are working to combat this dangerous poison. Thanks to their efforts in this case, thousands of fentanyl pills have been removed from our streets, making Eastern Washington safer and stronger.”
“Rainbow fentanyl is a despicable marketing tool used by traffickers to hide the deadly nature of fentanyl, which could have resulted in over 10,000 deaths in this case,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The team effort of DEA, alongside our state and local partners, kept this deadly drug off the streets and held Ms. Loza accountable for her actions.” According to the DEA laboratory, seven in 10 fake pills contain a potentially lethal dose of fentanyl www.DEA.gov/OnePill.
This case was investigated by the DEA and the Tri-Cities Metro Drug Task Force. This case was prosecuted by Assistant United States Attorney’s Stephanie Van Marter and Rebecca Perez.
4:22-CR-06048-MKD
Pair Sentenced for Roles in Lee County Heroin ConspiracyRead the Press Release
ABINGDON, Va. – A pair of out-of-state men, one from Tennessee and another from Michigan, who conspired with others to traffic heroin into Lee County, Virginia, were sentenced yesterday in federal court.
David Edward Farmer, 57, of Strawberry Plains, Tennessee, previously pleaded guilty to one count of conspiring to distribute and possession with the intent to distribute heroin and one count of possessing a firearm in furtherance of a drug trafficking crime. Farmer was sentenced to yesterday to eight years in federal prison.
Robert Lee Jenkins, 26, of Detroit, Michigan, previously pleaded guilty to one count of conspiring to distribute and possession with the intent to distribute 1,000 grams or more of heroin. Jenkins was sentenced yesterday to 12 months and one day in prison.
According to court documents, beginning in September 2021, Jenkins, Farmer, and others, including John Joel Foster, Ray Anthony McSwain, Garrett Lee Teffeteller, Darin Thomas, and Robert Warr, conspired to sell heroin in and around Lee County, Virginia.
During the relevant time periods, Farmer sold heroin to co-conspirator Darin Thomas and others, some of which was then resold. Farmer also was widely known to trade heroin in exchange for firearms.
Jenkins often drove his co-conspirator and half-brother, Robert Warr, around the Knoxville, Tennessee area to distribute heroin to other members of the conspiracy. Although Warr handled most of the supplying of the drugs, Jenkins was aware he was driving Warr around for the purpose of trafficking heroin. In addition, Jenkins handled money from the drug transactions and, at one point, rented a hotel room for Warr and other co-conspirators in order to sell their heroin.
Warr pleaded guilty and will be sentenced later this year.
United States Attorney Christopher R. Kavanaugh and Special Agent in Charge Craig B. Kailimai of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police, and the Lee County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Lena L. Busscher prosecuted the case.
Ozark Man Sentenced to 16 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – An Ozark, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.
Jevn Todd Griffitt, 26, was sentenced by U.S. District Judge Roseann Ketchmark to 16 years and eight months in federal prison without parole. The court also ordered Griffitt to forfeit to the government $15,324, which represents the proceeds he obtained from the drug-trafficking conspiracy.
On Jan. 10, 2023, Griffitt pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of possessing methamphetamine with the intent to distribute. Griffitt conspired with co-defendants Christopher Richard Ward, 45, of Kansas City, Mo., and Paris Ready, 29, of Sperry, Oklahoma, to distribute methamphetamine from May 2 to Nov. 7, 2019.
Griffitt admitted that he purchased approximately 1.2 kilograms of methamphetamine from Ward for $8,000 on Sept. 14, 2019. Griffitt also admitted that he sold firearms to Ward.
On Oct. 29, 2019, Griffitt sold a Beretta Stoeger Cougar 9mm handgun to an undercover officer, whom he met in Ozark, for $300. Detectives with the Springfield, Mo., Police Department identified Griffitt as a passenger in a Chevrolet Silverado on Oct. 31, 2019, and Greene County, Mo., sheriff’s deputies attempted to conduct a stop on Interstate 44. The Silverado fled and deputies pursued the vehicle into the Springfield city limits. The Silverado began travelling in the opposite direction of traffic and the pursuit was terminated. The Silverado was located after it was abandoned a short time later.
Throughout the pursuit, deputies saw Griffitt throwing purported methamphetamine out of the front passenger’s window. Investigators recovered approximately 238 grams of methamphetamine from the roadway along the course of the vehicle pursuit. Officers found a blue nylon bag on the front passenger floorboard of the Silverado that contained an AR-15 magazine and other ammunition, miscellaneous AR-15 parts, an AR-15 armorers kit, drug paraphernalia, and $74 in cash. Approximately 12 grams of methamphetamine was found on the front passenger floorboard and approximately 88 grams of methamphetamine was scattered throughout the truck and on the ground leading away from the front passenger’s seat.
Ward was arrested on an outstanding state warrant by Jackson County, Mo., sheriff’s deputies on Sept. 30, 2019. During the arrest, Ward attempted to flee from the deputies on foot but tripped and fell, which caused a Sig Sauer 9mm handgun to fall onto the ground. On the same day, the staff at a local hotel where Ward was staying found a black zippered case while cleaning his room. The case contained six plastic baggies with a total of 239 grams of methamphetamine. The case also contained a plastic bag with .9 grams of heroin.
Ward told investigators that he had purchased one pound (approximately 453.5 grams) of methamphetamine from his source two to three times each week for approximately one month. Ward said he sold Griffit a kilogram of methamphetamine two or three times, and that Griffitt had provided him with three firearms. Ward said he traded one-half ounce of methamphetamine to Griffitt for the Sig Sauer 9mm handgun he possessed when he was arrested. Ward also admitted to several other instances in which he sold methamphetamine.
Both Ward and Ready pleaded guilty to their roles in the drug-trafficking conspiracy and have been sentenced. Ward was sentenced on Nov. 9, 2023, to 12 years and seven months in federal prison without parole. The court also ordered Ward to forfeit to the government $39,960, which represents the proceeds he obtained from the drug-trafficking conspiracy. Ready was sentenced on April 18, 2023, to five years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Jackson County Drug Task Force.
Omaha Man Sentenced to 120 Months’ Imprisonment for Distribution and Receipt of Child PornographyRead the Press Release
Acting United States Attorney Susan Lehr announced that Adam E. Schenkelberg, 37, of Omaha, Nebraska, was sentenced on November 29, 2023, in federal court in Omaha for receipt and distribution of child pornography. United States District Judge Brian C. Buescher sentenced Schenkelberg to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, Schenkelberg will begin a 5-year term of supervised and will be required to register as a sex offender. Schenkeberg was also ordered to pay special assessments in the amounts of $7,500 and $5,000 pursuant to the Amy, Vicky, and Andy Victim Assistance Act of 2018, and the Justice for Victims of Trafficking Act of 2015, respectively.
On May 5, the Nebraska Internet Crimes Against Children (ICAC) Task Force received a CyberTipline report from the National Center for Missing and Exploited Children (NCMEC) concerning the upload of child pornography on Kik, an online file sharing service. The CyberTipline reports indicated that the user of a specific internet protocol (IP) address uploaded fourteen image and video files depicting child pornography between March 19, 2022, and March 23, 2022. Nebraska ICAC investigators received another CyberTipline report on August 25, 2022, noting the upload of four image and video files depicting child pornography from Kik on June 29, 2022. Investigators determined that the same suspect IP was assigned to Schenkelberg’s residential address in Sarpy County, Nebraska.
On November 3, 2022, investigators executed a warrant to search Schenkelberg’s home. Investigators seized several of Schenkelberg's electronic devices for forensic examination. On December 26, 2022, pursuant to a search warrant, Apple Inc. provided data from Schenkelberg’s Apple iCloud account. Investigators examined the Apple iCloud data and forensically examined the devices seized from his residence. From the iCloud account and the accessible electronic devices, investigators located additional images of child pornography, some involving toddlers. Schenkelberg’s cache of child pornography consisted of over 600 images.
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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol’s ICAC Task Force.
Omaha Man Sentenced for Illegal Possession of a Machine GunRead the Press Release
Acting United States Attorney Susan Lehr announced that Mar D. Maluoth, 25, of Omaha, Nebraska was sentenced November 29, 2023, in federal court in Omaha, for the illegal possession of a machine gun. United States District Court Judge Brian C. Buescher sentenced Maluoth to 70 months’ imprisonment. There is no parole in the federal system. After Maluoth’s release from prison, he will begin a 3-year term of supervised release. Maluoth was found guilty by a jury on July 20, 2023, after a three-day trial.
On September 23, 2022, Omaha police were conducting surveillance in the area of 30th and Manderson Street in Omaha, watching a house in search of a wanted escapee. Officers surveilling the house observed an unknown male walk from the back of the residence into the alleyway carrying what the officers believed to be a rifle. The male entered a black Kia Optima that was observed leaving the area from the alleyway.
Officers left the surveillance location and began following the black Kia Optima (‘Kia’) as it traveled westbound near 45th and Lake Streets. Officers conducted a traffic stop when the Kia failed to stop at a stop sign. Maluoth, who was the front seat passenger, began leaning forward in his seat as if concealing something when officers first approached the vehicle. Officers later observed what appeared to be marijuana ‘shake’ in the car and an open container of alcohol.
Due to Maluoth’s furtive behavior and continuous failure to follow officer commands, he was ordered out of the car. Once removed from the vehicle, Maluoth was detained in handcuffs and frisked for weapons. Officers then searched under Maluoth’s seat and found a Glock 23, .40 caliber handgun with a ‘Glock switch,’ allowing the firearm to function as a machinegun. When taken into evidence, the gun was found to have a round in its chamber and a partially loaded, extended high-capacity magazine.
Omaha police tested the firearms functionality in a controlled setting at the forensics unit and determined the firearm operated as a machinegun.
This case was investigated by the Omaha Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Officers Found Illegal Drugs, Firearms after KC Man Called 911 for His MotherRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who called 911 emergency assistance for his mother was sentenced in federal court today after the police officers who responded to his home found illegal drugs, six firearms he illegally possessed, and large amounts of cash.
Michael Thomas Cummings II, also known as “Blue,” 41, was sentenced by U.S. District Judge Howard F. Sachs to 18 years in federal prison without parole.
On Feb. 15, 2023, Cummings pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of being a felon in possession of firearms.
Kansas City police officers arrived at Cummings’s residence shortly before midnight on June 7, 2021, after he had called 911 for his mother because she was unresponsive. Emergency medical personnel were in the process of attempting lifesaving measures when police officers arrived, but she was unresponsive and was pronounced dead at approximately 12:04 a.m. on June 8, 2021. Cummings, who lived with his mother, told officers she suffered from cognitive decline. Officers noted she appeared to be emaciated.
Officers saw a loaded Heckler & Koch .40-caliber semi-automatic pistol sitting next to $438 in cash on a table. They also saw an SKS-style 7.62 x 54mm assault rifle with a magazine leaning against the wall of a back stairwell that led to the basement. Cummings, a felon, was arrested for illegally possessing the firearms.
Officers executed a search warrant at Cummings’s residence later the same day. They found a total of 351.37 grams of methamphetamine in Cummings’s bedroom and a Pioneer Arms 7.62 x 39mm AKM-47 style pistol in a bedroom closet. On a desk in the bedroom, officers also found a baggie that contained approximately .24 grams of fentanyl/heroin, and two baggies that contained approximately 28.1 grams of crack cocaine, as well as a baggie of marijuana in a desk drawer. Officers also found $3,512 in cash in the bedroom.
Officers found a Ruger .22-caliber pistol in another bedroom that had been converted into a weight room.
In a third bedroom, officers found a Smith and Wesson AR-15 style assault rifle in the closet and a safe that contained $175,100 in cash and a Ruger revolver that had been reported as stolen.
Officers also found $180 under the couch cushion, and sodium sulfate, which is often used by drug dealers as a cutting agent to dilute drugs, on a coffee table.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Cummings has a prior felony conviction for possession of a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department and the FBI.
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.
Nueces County resident heads to prison for possessing multiple child pornography images and videosRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old Corpus Christi resident has been sentenced for possession of child pornography, announces U.S. Attorney Alamdar S. Hamdani.
Omar Diego Lyra pleaded guilty July 27.
U.S. District Judge David Morales has now sentenced Lyra to 228 months in prison. At the hearing, the court heard Lyra engaged in distribution of images and videos with others. In handing down the prison term, the court noted the seriousness of the offense and that Lyra provided images and videos to others. Lyra was further ordered to pay $27,000 in restitution to the victims and will serve 20 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Lyra will also be ordered to register as a sex offender.
The investigation began June 2022 when authorities discovered images of child pornography on an online platform associated with an email address belonging to Lyra. Law enforcement then executed a search warrant of Lyra’s residence and found images and videos depicting sexual exploitation of minors present on electronic devices in his possession.
Lyra has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with assistance of the Victoria and Corpus Christi Police Departments.
Assistant U.S. Attorney Patrick Overman prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
North Carolina Man Sentenced to 21 Years for Transporting Cocaine through LouisianaRead the Press Release
SHREVEPORT, LA. - Howard Davis, 45, of Raleigh, North Carolina, was sentenced November 29, for possession with intent to distribute 500 grams or more of cocaine announced United States Attorney Brandon B. Brown by United States District Judge Elizabeth E. Foote to 262 months (21 years, 8 months) in prison followed by 5 years of supervised release.
Davis was found guilty by a federal jury on June 14, 2023. Testimony at trial showed that on August 2, 2022, Davis was stopped by a Louisiana State Trooper on Interstate 20 near Minden, Louisiana, for a traffic violation. During the traffic stop, the trooper became suspicious of the story that Davis gave him as to why he was traveling through the area. The trooper was able to receive information from law enforcement indicating that the vehicle Davis was driving had been seen in North Carolina during the early morning hours the day before the traffic stop and was seen later that same evening in Dallas, Texas. The information Davis provided to the trooper led him to believe that he was not being truthful. A Louisiana State Trooper K-9 was called in and conducted an open-air sniff of Davis’s vehicle and alerted to the presence of narcotics. While conducting a search of the vehicle, troopers found inside the trunk a tote bag containing approximately 4.5 kilograms of suspected cocaine wrapped in black electrical tape. The cocaine had an estimated street value of over $110,000. The narcotics were seized and sent to the DEA Laboratory for testing, and it was confirmed to be cocaine.
The case was investigated by the U.S. Drug Enforcement Administration and Louisiana State Police and prosecuted by Assistant U.S. Attorney Jessica D. Cassidy and Alexander C. Van Hook, Special Counsel to the U.S. Attorney.
New York Man Sentenced to Life in Prison for Double HomicideRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jason Rivera, 38, of Brooklyn, New York was sentenced to life in prison today for his role in the kidnapping, extortion, and murder of two Philadelphia drug dealers after a jury found Rivera guilty on all counts following a trial in October 2022.
In the summer of 2014, defendant Jason Rivera and two associates, John Dao and Trung Lu, were recruited by members of the “Born To Kill” street gang to forcibly collect money from three marijuana dealers who had failed to pay a substantial drug debt.
The victims in this case, brothers Vu and Viet Huynh, and their friend Tan Voong, were drug dealers from the Philadelphia area who sold large quantities of marijuana. Their friend, Tam Le, introduced the Huynh brothers to a gangster from New York, Lam Trieu. Le and Trieu were members of a street gang called Born to Kill ("BTK"). Lam Trieu, in turn, arranged for his supplier in California, known by his nickname "Fat Man," to supply large quantities of marijuana to the Huynh brothers. Allegedly, the Huynh brothers owed Trieu and “Fat Man” more than $30,000, and Voong owed “Fat Man” more than $300,000. Though “Fat Man” and Trieu were their suppliers, the victims did not pay them all the money they were owed.
"Fat Man" pressed Lam Trieu to collect the money which he was owed. When Tam Le either could not or would not collect the money, Lam Trieu recruited three drug trafficking associates, John Dao, Trung Lu, and Jason Rivera to get the money from the Huynh brothers and Voong. Dao, Lu, and Rivera understood that they would use force and threats of force to collect the debt owed for the sale of marijuana. In exchange, Lam Trieu promised to pay Dao, Lu, and Rivera a percentage of the money recovered.
A few days before the murders, Dao, Lu, and Rivera traveled to Philadelphia where they met with Tam Le and Minh Nguyen. Dao, Lu, and Rivera then unsuccessfully attempted to locate the victims to force them to pay their drug debts.
Finally, on August 26, 2014, Tam Le, a member of BTK, lured the victims to his home in southwest Philadelphia, where Rivera, Dao, and Lu assaulted the victims and restrained them with duct tape and zip ties. Rivera searched Voong’s car and confiscated $40,000 in U.S. currency. At this point, Dao, Lu, and Rivera believed that their work was completed. LU gave some of the money to Tam Le. Dao and Lu intended to steal the victims' luxury vehicles which were parked outside and return to New York. However, Tam Le wanted to murder the victims fearing that the victims would return to his home to seek revenge if they remained alive. When Tam Le and Minh Nguyen started putting buckets of roofing cement into a van, Dao and Lu understood that Tam Le intended to kill the victims. Dao, Lu, and Rivera believed that Tam Le was a BTK "brother" of Lam Trieu, which made him the on-scene commander. Dao, Lu, and Rivera went along with Tam Le's plan.
They then transported the three victims to the Schuylkill River, weighed down their bodies, stabbed them, and dumped all three into the river. Vu Huynh and Viet Huynh died in the river, but Tan Voong miraculously managed to crawl out of the river and flag down a passing motorist on Kelly Drive for assistance. Upon their return to New York, Rivera, Dao, and Trieu were each paid several thousand dollars each using the money they took from the victims.
In addition to this case, five defendants were federally indicted for this crime. John Dao, Lam Trieu, and Minh Nguyen pleaded guilty for their respective roles in these offenses and have all been sentenced by the Court. "Fat Man" pleaded guilty to a drug trafficking offense in the Southern District of New York. Tam Le was convicted of murder and related offenses after a trial in Philadelphia County and sentenced to death. Another defendant, Hai Nguyen, pleaded guilty to making statements to the FBI concerning his efforts to assist Tam Le flee after the murders. Trung Lu is a fugitive who apparently resides in Vietnam. The FBI is offering of $50,000 for information leading to the arrest of Trung Lu.
“After the initial investigation and arrests were made in this case which resulted in state charges for two individuals involved with these murders and attempted murder, the trail on the other individuals who helped them went nearly cold,” said U.S. Attorney Romero. “But thanks to the persistent efforts and dogged determination of the FBI and other law enforcement partners, our Office was able to charge these remaining individuals, get them off the streets, and bring them to justice for their crimes.”
“Stopping crimes as shockingly violent as this one is a top priority of our Office,” said U.S. Attorney Romero. “Thanks to the partnership of the FBI and Philadelphia Police Department, we were able to bring Rivera to justice for his crimes.”
“The brutality of the crimes committed by Rivera and his co-conspirators is stunning,” said Wayne A. Jacobs, Special Agent in Charge of the FBI’s Philadelphia Division. “I’d like to commend FBI Philadelphia’s Organized Crime Task Force for their years of hard work to help bring these men to justice. However, our work is not done. So long as Trung Lu, also charged in connection with these crimes, remains at large, we will not stop in our efforts to hold him accountable.”
The case was investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorney Robert J. Livermore.
New York Man Charged for Obstructing Investigation into Fatal Construction IncidentRead the Press Release
A federal grand jury today indicted Richard Zagger, 58, of Blue Point, New York, charging him with conspiracy and obstruction of official proceedings relating to an investigation into a fatal construction accident.
The four-count indictment alleges that Zagger was a supervisor for Northridge Construction Corporation, located in East Patchogue, Long Island, New York. On Dec. 8, 2018, Zagger was overseeing employees of Northridge constructing a metal shed on the Northridge property. During the construction, one of the employees fell from the improperly secured shed roof and died.
The Occupational Safety and Health Administration (OSHA) investigated the employee’s death and violations of worker safety standards. Among other worker safety standards, OSHA regulations require maintaining the stability of a metal structure at all times during construction. The indictment charges that during the investigation, Zagger made false statements and conspired with others to make false statements to obstruct the federal agency’s inquiry.
The maximum penalty for the conspiracy count and each obstruction count is five years in prison and a $250,000 fine, or twice the economic gain to the defendant or loss suffered by the victim because of the crime.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) made the announcement.
Senior Trial Attorneys Daniel Dooher and Richard J. Powers and Trial Attorney Rachel Roberts of ENRD’s Environmental Crimes Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
New York City Man Sentenced to Nearly 26 Years in Prison for Abducting Elderly Woman with Dementia and Obstructing FBI InvestigationRead the Press Release
LOS ANGELES – A New York City man was sentenced today to 310 months in federal prison for kidnapping a 68-year-old woman with dementia at the West Los Angeles Veterans Affairs Medical Center in July 2021, then obstructing an FBI investigation into the abduction.
Johnny Ray Gasca, 53, of Bronx, New York, was sentenced by United States District Judge André Birotte Jr.
At the conclusion of a six-day bench trial, Judge Birotte on June 13 found Gasca guilty of one count of kidnapping, two counts of attempted obstruction of justice, and one count of attempted witness tampering.
“[Gasca] financially exploited [the] victim’s mental fragility – describing his supposed ‘girlfriend’ as ‘senile’… – to steal tens of thousands of dollars from her,” prosecutors argued in a sentencing memorandum. “After the victim managed to get away from [Gasca], he abducted her from the grounds of a hospital where she had sought care for her dementia, in order to steal even more of her money. Immediately after the abduction, he attempted to indoctrinate her to parrot back a version of events favorable to him.”
Gasca kidnapped the victim at approximately 8:30 a.m. on July 19, 2021, after the victim attempted to obtain a medical appointment at the VA facility.
The victim was accompanied by a long-time friend, and as the two of them “approached their car, Gasca appeared unexpectedly,” according to court documents. “Gasca put his arms around [the victim] and pushed her toward a gold-colored pickup truck that was parked nearby. Gasca then picked [the victim] up and threw her into the rear portion of the truck’s passenger compartment.”
After the Department of Veteran Affairs Police Department contacted the FBI later in the morning, the victim’s friend told agents she recognized Gasca, believed he previously was in some kind of relationship with the victim, and suspected Gasca may have taken some of [the victim’s] money from her bank and retirement accounts.
The witness also reported that the victim previously noted she was missing some of her credit cards, and when the two went to the victim’s bank to review her accounts, bank records showed a $35,000 withdrawal from the victim’s retirement account, followed by several Venmo, MoneyGram and PayPal transactions that the friend believed the victim did not have “the knowledge or wherewithal” to conduct, court documents state.
Within hours of beginning its investigation, the FBI located the victim’s phone at a hotel on Hollywood Boulevard in Los Angeles, where agents converged. Soon after, Gasca and the victim exited the hotel, leading to Gasca’s arrest.
During an interview recounted in court documents, Gasca described the victim as his girlfriend and told agents that, after leaving the VA facility, they stopped at a bank where the victim made a $15,000 withdrawal.
After his arrest and while in pre-trial custody, Gasca made several jail calls to a friend in New York asking him to destroy evidence of his wrongdoing with the victim, according to evidence presented at the trial. Gasca urged the friend to erase all his messages on the Facebook Messenger app, including messages describing the victim as a “Golden goose.”
In August 2021, Gasca made another jailhouse phone call to his friend and told him to collect his hard drives from his apartment before the FBI could seize them and learn of his financial exploitation of the victim.
The FBI investigated this matter and received substantial assistance from the VA Police.
Assistant United States Attorneys Kevin B. Reidy of the Major Frauds Section and Kathy Yu of the Violent and Organized Crime Section prosecuted this case.
New Orleans Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that TORIN JENKINS, age 29, of New Orleans, pled guilty on November 28, 2023 to possessing a firearm as a convicted felon, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(2). Sentencing is set for March 12, 2024.
On December 3, 2021, NOPD officers arrested JENKINS based on open state warrants. After initially failing to cooperate with officers, JENKINS was seen throwing an object of the window of his residence. After JENKINS eventually surrendered, officers discovered the object was a Glock Model 36, .45 caliber firearm. JENKINS faces a maximum sentence of 10 years of imprisonment, a fine of up to $250,000, up to 3 years of supervised release and a $100 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit .
New Orleans Man Charged with Sexual Exploitation of Children and Transferring Obscene Matter to a MinorRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that a four-count indictment was unsealed today charging DOMINICK ANTHONY VALOTTA (a/k/a joncimpo#8015), age 38, a resident of New Orleans, with two counts of sexual exploitation of children, in violation of Title 18, United States Code, Section 2251(a) (Counts 1-2) and two counts of transfer of obscene matter to a minor, in violation of Title 18, United States Code, Section 1470 (Counts 3-4). A federal grand jury returned the indictment under seal on November 16, 2023.
According to the indictment, at various dates in late 2022 and early 2023, VALOTTA coerced a minor female born in August 2007, who was a resident of North Carolina (Victim 1), and a minor female born in July 2008, who was a resident of Ohio (Victim 2), to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. Further, on at least two dates in late 2022, VALOTTA transferred obscene matter to a minor female born in March 2008, who was a resident of North Carolina (Victim 3).
As to each of Counts 1 and 2, VALOTTA faces a mandatory minimum term of imprisonment of fifteen (15) years and a maximum term of imprisonment of thirty (30) years. He also faces, for each of Counts 1 and 2, a minimum of five (5) years and a maximum of a lifetime of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee. As to each of Counts 3 and 4, VALOTTA faces a maximum term of ten years in prison, as well as up to three (3) years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee. He may also be required to register as a sex offender.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Nevada Man Indicted for Making Threats to United States SenatorsRead the Press Release
LAS VEGAS – A federal grand jury returned a three-count indictment on November 21, 2023, charging a Las Vegas man with threatening a United States Senator from Nevada and threatening family members of two United States Senators.
John Anthony Miller (43) is charged with one-count of threatening a federal official and two-counts of influencing, impeding, or retaliating against a federal official by threatening a family member. United States Magistrate Judge Elayna J. Youchah ordered that Miller remain in custody pending trial. A jury trial has been scheduled for January 23, 2024, before United States District Judge Jennifer A. Dorsey.
According to allegations contained in court documents, on October 17, 2023, Miller left numerous threatening voicemails at the office of a United States Senator. Miller threatened to assault and murder the United States Senator with intent to impede, intimidate, and interfere with the United States Senator while engaged in the performance of official duties, or with intent to retaliate against the United States Senator on account of the performance of official duties.
Furthermore, the following week, on October 24 and October 25, Miller threatened to assault and murder a member of the immediate family of two United States Senators, with intent to impede, intimidate, and interfere with United States Senators while engaged in the performance of official duties, and with intent to retaliate against the United States Senators on account of the performance of official duties.
If convicted, the maximum statutory penalty is 10 years in prison.
Miller was arrested on October 26, 2023, and first appeared on an amended criminal complaint on October 27, 2023.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI Las Vegas Division made the announcement.
This case was investigated by the FBI Las Vegas Division with valuable assistance provided by the Las Vegas Metropolitan Police Department, the U.S. Marshals Service, and the U.S. Capitol Police. Assistant United States Attorney Jacob Operskalski is prosecuting the case.
To report suspected threats or violent acts, contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Mexican National Sentenced for Entering the United States After Prior RemovalRead the Press Release
BANGOR, Maine: A Mexican national was sentenced today in U.S. District Court in Bangor for entering the United States after a prior removal.
U.S. District Judge John A. Woodcock, Jr. sentenced Manuel Bonilla Davila, 39, to 15 months imprisonment. Bonilla Davila has been incarcerated since he was arrested by U.S. Border Patrol agents on April 21, 2023, after he was discovered in Aroostook County, a short distance from the international boundary.
Immigration records showed that Bonilla Davila had been previously removed from the U.S. in March 2011 in Brownsville, Texas and had not obtained the express consent of the Secretary of the U.S. Department of Homeland Security to reapply for admission.
The U.S. Border Patrol investigated the case.
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Maryland Man Charged with Committing $11.5 Million in Covid-19 Pandemic FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Creed White, age 65, of Freeland, Maryland, was charged in a criminal information with conspiracy to commit wire fraud and engaging in an unlawful monetary transaction.
According to United States Attorney Gerard M. Karam, the information alleges that White owned Aluminum Alloys MFG, LLC, an aluminum smelting and processing business located in Yoe, York County, Pennsylvania, and additionally owned or controlled 18 other sham corporate entities that did not have any employees or business operations. The information alleges that White, conspiring with others, including several of his employees, filed more than 120 applications on behalf of White’s non-operational businesses for pandemic stimulus funds, including under the Payment Protection Program (PPP) and the Economic Injury and Disaster Loan (EIDL) program. The information alleges that 42 of these loan applications were approved and funded with more than $11.5 million into bank accounts that White controlled.
The information also alleges that the applications White and his co-conspirators filed contained numerous material misrepresentations about who controlled and operated the non-operational businesses. It is alleged that the PPP and EIDL applications included fraudulent supporting documentation, including false information about the number of employees who purportedly worked at the non-operational businesses, fabricated bank records and financial statements, forged and falsified IRS documents, and material misrepresentations regarding wages paid, taxes withheld and paid, gross receipts, and other expenses allegedly incurred by the applicant businesses.
White and his co-conspirators allegedly obtained more than $11.5 million in PPP and EIDL funds through filing the fraudulent applications. It is also alleged that White misused the loan proceeds to make unauthorized expenditures for his benefit and the benefit of his businesses.
“Fraudulently obtaining over $11.5 million in federal pandemic relief funds that are meant to provide assistance to eligible small businesses will not be tolerated as shown by today’s charging of Defendant White,” said U.S. Attorney Karam. “My office will continue to diligently work with our law enforcement partners to pursue fraud against federal relief programs.”
“Individuals making false statements to fraudulently obtain pandemic funds for personal gain will face justice,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
“The charges announced today show IRS-CI’s ongoing commitment to defend the integrity of the pandemic relief programs,” said Yury Kruty, Special Agent in Charge of IRS-Criminal Investigation. “IRS-CI along with our law enforcement partners will continue to aggressively investigate those who schemed to defraud these programs that were intended to help struggling individuals and businesses.”
“Treasury OIG is working closely with its law enforcement partners to investigate and prosecute criminals who cheat and steal funds meant to help individuals and businesses harmed by the pandemic,” said Rich Delmar, Treasury Deputy Inspector General.
The PPP and EIDL programs, both funded by the March 2020 CARES Act, were designed to help small businesses facing financial difficulties during the COVID-19 pandemic. PPP funds were offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses. EIDL funds are offered in low-interest rate loans, designated for specific business expenses, such as fixed debts, payroll, and business obligations.
The case was investigated by the Internal Revenue Service Criminal Investigations, the Department of the Treasury’s Office of Inspector General, and the Small Business Administration’s Office of the Inspector General. Assistant U.S. Attorney Christian T. Haugsby is prosecuting the case.
The combined maximum penalty under federal law for wire fraud and money laundering is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Manchester Man Sentenced to More Than 10 Years in Federal Prison for Stealing over $165,500 in a Series of RobberiesRead the Press Release
CONCORD – A Manchester man was sentenced today in federal court in Concord for Hobbs Act Robbery and Bank Robbery, U.S. Attorney Jane E. Young announces.
Hector Rivera Ayala, 34, was sentenced by U.S. District Court Judge Steven McAuliffe to 130 months in prison and 3 years of supervised release. Rivera Ayala was also ordered to pay $171,677.37 in restitution. On April 18, 2023, Rivera Ayala pleaded guilty to Hobbs Act Robbery and Bank Robbery.
“The defendant’s brazen and repeated criminal conduct placed the lives of numerous people in jeopardy as he robbed gas stations and a bank,” said U.S. Attorney Jane Young. “As demonstrated by the sentence of more than a decade in federal prison, people who threaten, steal and place others in physical jeopardy will be removed from society for significant periods of time. The U.S. Attorney’s Office will continue to prioritize prosecuting and incarcerating violent offenders like the defendant in order to keep our communities safe.”
“Hector Rivera Ayala went on a robbery spree in Manchester, using what appeared to be a real firearm to threaten and intimidate his victims, to steal tens of thousands of dollars. Today’s significant sentence removes this dangerous individual from our community and highlights the tenacity of the FBI and our law enforcement partners to identify and apprehend criminals like him who threaten public safety,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division.
“This man terrorized business owners in our city, threatening them with a weapon and putting them on edge,” said Chief Allen Aldenberg of the Manchester Police Department. “I am very pleased with Mr. Ayala’s sentence. It sends a strong message that this criminal behavior will not be tolerated in Manchester.”
In December 2019, Rivera Ayala robbed four gas stations and one bank in Manchester, including Rapid Refill on Second Street; Brother’s Express Gas Station on Union Street; Shell Gas Station on Eddy Road; Shell Gas Station on Hanover Street; and the Bank of New England on Elm Street. Each robbery was captured on video surveillance. For each robbery, the defendant was seen entering the gas station and bank with his face partially obscured and carrying what appeared to be a firearm. During the first robbery, at the Shell Gas Station on Eddy Road, the defendant approached the store clerk from behind and demanded money from both registers. He also ordered a customer to withdraw money from an ATM. During the second Shell Gas Station robbery, on Hanover Street, the defendant wore white face paint and used what appeared to be a double-barreled shotgun. He demanded money from the safe and registers and stole money and other items from customers who were present. One victim reported that the defendant threatened:
If you call the police within 30 minutes after I leave, I will come back and blow your brains out.
Investigators recovered a shawl and a BB gun from the crime scene of one gas station. The defendant’s DNA was found on the shawl. In total, the defendant stole more than $5,500 from the gas stations and more than $160,000 from the bank.
The Federal Bureau of Investigation and the Manchester Police Department led the investigation. Assistant U.S. Attorney Matthew Hunter prosecuted the case.
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Man Sentenced to 21 Years for Abusive Sexual Contact of a MinorRead the Press Release
Yakima, Washington – Chief United States District Judge Stanley A. Bastian sentenced Joseph Leonard Roy, age 58, of Mabton, Washington, to 252 months in federal prison for two counts of Abusive Sexual Contact of a Minor. Roy pleaded guilty to those charges on November 29, 2022. Chief Judge Bastian also ordered Roy to serve an additional 20 years on federal supervision after he is released from prison.
According to court documents, between 2017 and 2018, Roy sexually molested two minors in a home on the Yakama Nation, where Roy had access to the victims. Roy was dating a relative of the victims at the time of the abuse, and this disturbing conduct continued until one of the victims spoke out to a trusted family member, who then contacted authorities, to report the exploitation.
Following the sentencing, Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, stated, “My heart breaks for the victims in this case. I am grateful for their courage to come forward and engage with law enforcement to seek justice,” stated U.S. Attorney Vanessa Waldref. “Children deserve to live in a world where they feel safe -- free from abuse and the fear of abuse. Mr. Roy was held accountable today due to the joint efforts of the Yakama Nation Tribal Police Department, the FBI, the United States Attorney’s Office, and the community. By working together, we can continue to build trust and keep our communities safe and strong.”
“Mr. Roy’s unspeakable actions demonstrated that prison is where he belongs.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “As a parent, I can think of nothing worse than what the victims had to endure. I applaud them for seeking help which led to this sentence and which will remove him from this community for more than twenty years.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the 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 sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation and the Yakama Nation Tribal Police Department. This case was prosecuted by Assistant United States Attorney Michal Murphy.
1:21-CR-02006-SAB
Man Sentenced to 20 Years for Production of Child Pornography and Possession of Child PornographyRead the Press Release
Yakima, Washington – Chief United States District Judge Stanley A. Bastian sentenced Bryce Quinton Hale, age 28, of Yakima, Washington, to 240 months in federal prison for Production of Child Pornography and Possession of Child Pornography. Hale pleaded guilty to those charges on August 23, 2023. Chief United States District Judge Bastian also ordered Hale to serve an additional 10 years on federal supervision after he is released from prison and imposed $3,000 in restitution.
According to court documents, in August 2021, Hale produced images of child pornography which he shared with a chat group using the “Kik” app on his cellular phone. He was charged for this conduct in November 2021 and was placed on conditions of pre-trial release beginning on December 1, 2021. Hale then violated those pre-trial release conditions by accessing the internet and using another cellular phone on which he possessed additional images and videos of child pornography.
“Today’s sentence sends a clear message to those who continue to seek to victimize children: the U.S. Attorney’s Office and our partners will continue to work tirelessly to seek justice, and the consequences of exploiting children will be severe,” said Vanessa R. Waldref, United States Attorney for the Eastern District. “The FBI and the United States Attorney’s Office stand ready to respond with thorough investigations, vigorous prosecutions, and significant sentences for anyone who abuses children.”
“Child pornography is particularly troubling for the victims as the images continue to exist on the internet even after the perpetrator is stopped.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Despite being confronted by law enforcement with his horrendous actions, Mr. Hale continued to engage in unlawful activity. Protecting the children of Washington state is one of the highest priorities for the FBI, and our partners at the US Attorney’s office.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the 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 sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Michael Murphy.
1:21-CR-02052-SAB
Man Sentenced for Election-Related Threats Toward Georgia Public OfficialsRead the Press Release
A Texas man was sentenced today to two years in prison for posting a message online threatening several Georgia public officials following the 2020 election.
“Threats of violence against those who administer our elections are dangerous for people’s personal safety, and they are dangerous for our democracy,” said Attorney General Merrick B. Garland. “This sentence should serve as warning — illegal threats against the public servants who make our democracy work will be met with the full force of the Justice Department.”
According to court documents, on or about Jan. 5, 2021, Chad Christopher Stark, 55, of Leander, posted a message to Craigslist entitled, “Georgia Patriots it’s time to kill [Official A] the Chinese agent - $10,000.” The message stated the following:
“Georgia Patriots it’s time for us to take back our state from these Lawless treasonous traitors. It’s time to invoke our Second Amendment right it’s time to put a bullet in the treasonous Chinese [Official A]. Then we work our way down to [Official B] the local and federal corrupt judges. It’s our duty as American Patriots to put an end to the lives of these traitors and take back our country by force we can no longer wait on the corrupt law enforcement in the corrupt courts. If we want our country back we have to exterminate these people. One good loyal Patriot deer hunter in camo and a rifle can send a very clear message to these corrupt governors.. milita up Georgia it’s time to spill blood…. we need to pay a visit to [Official C] and her family as well and put a bullet her behind the ears. Let’s be very clear to our local law enforcement who have stood down and watch BLM antifa destroy our country and kill our citizens yet you’ll step up to stop Patriot supporters you’ll enforce face mask and you’ll close American businesses??? Remember one thing local law enforcement the key word being local….. we will find you oathbreakers and we’re going to pay your family to visit your mom your dad your brothers and sisters your children your wife… we’re going to make examples of traitors to our country… death to you and all you communist friends.”
“It’s simple: protecting America’s democracy means protecting the public servants and officials who ensure the electoral process is fair and free,” said FBI Director Christopher Wray. “Christopher Stark threatened the lives of multiple election workers in an attempt to prevent them from doing their job. Today’s sentencing demonstrates the FBI’s resolute commitment to securing American elections from any attempts to undermine their integrity.”
“The conviction and sentencing of this defendant should send a clear message: the intimidation of those sworn to oversee and facilitate free and fair elections in this country is a serious offense that carries significant criminal penalties,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “Stark threatened Georgia statewide elected officials and a volunteer county election worker. Those threats were equally harmful, and his conduct put our democracy in jeopardy.”
“Sending death threats and urging others to act is not protected speech — it is a crime,” said Special Agent in Charge Keri Farley of the FBI Atlanta Field Office. “The sentencing of Stark is a warning to all that those who attempt to undermine American democracy will be held criminally accountable.”
The FBI Atlanta Field Office investigated the case.
Election Community Liaison Aaron Jennen and former Election Crimes Branch Director of Enforcement and Litigation Sean F. Mulryne of the Criminal Division’s Public Integrity Section and Senior Litigation Counsel Brent A. Gray for the Northern District of Georgia prosecuted this case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the task force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. The task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide.
Under the leadership of Deputy Attorney General Monaco, the task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
Man Admits Armed Robbery of Jennings Convenience StoreRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri on Wednesday admitted the armed robbery of a convenience store in Jennings in February.
Richard E. Barber, 51, pleaded guilty in U.S. District Court in St. Louis to one count of robbery and one count of being a felon in possession of a firearm. Barber admitted that on Feb. 11, 2023, he entered the Gas Mart at 9301 Lewis and Clark Boulevard wearing a face mask and a camouflage St. Louis Blues cap. After selecting a beer from the refrigerated section of the store, Barber took it to the register, pulled a pistol and pointed it at the clerk. Barber then demanded and took cash from the cash registers and left in a Chrysler Sebring.
Early on the morning of Feb. 13, 2023, Barber wrecked the Sebring in the 800 block of North Florissant Road in Ferguson, suffering injuries that required hospitalization. A paramedic noticed a .40-caliber pistol on the car’s floorboard that resembled the one used in the robbery. Investigators later found the hat and face mask Barber wore during the robbery in his car.
At the time of the robbery, Barber was on supervised release after pleading guilty in U.S. District Court in St. Louis in 2014 to being a felon in possession of a firearm. He was sentenced to 100 months in prison in that case.
Barber is scheduled to be sentenced in April. The robbery charge is punishable by up to 20 years in prison, a $250,000 fine or both prison and a fine. The felon in possession charge is punishable by up to 15 years in prison and the same fine. As part of the plea agreement, both sides have agreed to recommend a total of 20 years in prison.
The St. Louis County Police Department and the Ferguson Police Department investigated the case. Assistant U.S. Attorney Michael Hayes is prosecuting the case.
Madison Man Sentenced to 96 Months for Bank RobberyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Richard Chapman, 66, Madison, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 96 months in prison for bank robbery. Chapman pleaded guilty to this charge on June 26, 2023.
On February 3, 2023, Chapman robbed the Park Bank in downtown Madison by presenting the teller with a note saying “I have a gun. I am a robber. Give me one hundreds.” He held his hand inside a plastic bag which led the teller to believe that he had a gun. After being given money, the defendant fled the bank. Madison detectives were able to follow Chapman’s movements by watching city cameras and found clothing that he had discarded in a nearby parking garage. Further investigation led detectives to the defendant, who after initially lying about his name and trying to run, was taken into custody and said, “You got me.” Officers searched Chapman’s duffle bag and found clothing consistent with the robber’s as well as a robbery note.
Chapman has a criminal record that started in 1975 when he was 18 years old. He was convicted in federal court for bank robberies in 1996 and 2001. He was sentenced to 70 months in prison and 188 months in prison for those offenses.
At sentencing Judge Peterson observed that Chapman terrorized the person that he robbed and created a dangerous situation in the bank. Judge Peterson remarked that Chapman has an unmatched record of recidivism and concluded that he has shown that he will continue to commit crimes and therefore must be incarcerated to protect the community.
The charge against Chapman was the result of an investigation conducted by the Madison Police Department and Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Lynn Man Sentenced for Wire Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A Lynn man was sentenced today for submitting false federal loan applications and using a stolen identity to rent an apartment, for which he made no rent payments.
Steeve Jean, 36, was sentenced by U.S. District Court Judge Denise J. Casper to 44 months in prison and three years of supervised release. Jean was also ordered to pay restitution of $41,666 restitution to the Small Business Association and $8,343 to the property management company. On Sept. 6, 2023, Jean pleaded guilty to wire fraud, aggravated identity theft and unauthorized use of a Social Security number.
From September 2021 through June 2022, Jean rented an apartment in Lynn using the name, Social Security number and other personal identifying information of another individual. Jean failed to pay rent for the apartment resulting in a default court judgment of over $8,000 against the victim whose identity was stolen. A subsequent investigation revealed that in April 2021, Jean submitted two fraudulent federal Paycheck Protection Program loan applications, each for $20,833, claiming business losses for a business that did not exist. Jean was serving a state prison sentence during the period he claimed to be running a business.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Benjamin A. Tolkoff and Brian Sullivan of the Criminal Division prosecuted the case.
Louisville Man Sentenced to Federal Prison for CARES Act FraudRead the Press Release
Louisville, KY – A Louisville man was sentenced yesterday to 1 year and 6 months in prison for charges related to his submission of twelve fraudulent Coronavirus Aid, Relief, and Economic Security (CARES) Act applications.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for the Tax Administration, Great Lakes Field Division, made the announcement.
According to court documents, Blake Patterson, 38, was sentenced yesterday to 1 year and 6 months years in prison, followed by a 5-year term of supervised release, for twelve counts of wire fraud and one count of bank fraud. There is no parole in the federal system.
Patterson filed six fraudulent applications for Economic Injury Disaster Loans (EIDL) and six applications for Paycheck Protection Program (PPP) loans between August 7, 2020, and May 11, 2021, seeking more than $740,000 and resulting in the theft of $133,802. Patterson utilized the entities et Propellente, LLC, Darke Rose LLC, and Link, LLC. Patterson organized all three entities after the onset of the COVID-19 pandemic. He then exaggerated the number of employees, revenue, cost of goods sold, and payroll expenses of those entities in the fraudulent applications. Further, every EIDL and PPP application included a question asking whether any individual owning 20% or more of the equity of the applicant was subject to an indictment or other means by which formal criminal charges are brought in any jurisdiction at the time of the application. Patterson’s applications falsely omitted that he had criminal charges pending against him in Jefferson County Circuit Court at the time he submitted the applications.
Patterson was also ordered to pay $133,802 in restitution.
This case was investigated by the Treasury Inspector General for the Tax Administration.
Assistant U.S. Attorneys Nicole Elver and Christopher Tieke prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Louisville Felon Sentenced to 13 Years in Federal Prison for Fentanyl Distribution Offenses, to Include Causing a Fatal Overdose, and Illegally Possessing a FirearmRead the Press Release
Louisville, KY – Today, a local man was sentenced to 13 years in prison for distribution of fentanyl resulting in death, distribution of fentanyl resulting in serious bodily injury, distribution of fentanyl, and for possessing a firearm as a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
According to court documents, Dalton Hayes, 21, was sentenced to 13 years in prison, followed by a 5-year term of supervised release, for distribution of fentanyl resulting in death, distribution of fentanyl resulting in serious bodily injury, distribution of fentanyl, and possession of a firearm by a convicted felon. Hayes was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses. On March 31, 2021, in Jefferson Circuit Court, Hayes was convicted of trafficking in a controlled substance in the first degree, schedule II oxycodone less than 10 dosage units, receiving a stolen firearm, and receiving stolen property over $500 but less than $10,000.
There is no parole in the federal system.
The DEA Louisville Field Division and LMPD investigated the case.
The case was prosecuted by Assistant United States Attorney Frank Dahl.
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Los Angeles Man Sentenced to 10 Years in Federal Prison for Crime Spree in Which He Used a BB Gun to Rob Businesses and Carjack a MotoristRead the Press Release
LOS ANGELES – A Los Angeles man was sentenced today to 120 months in federal prison for committing a carjacking and used a BB gun to commit eight armed robberies of gas stations and convenience stores in Los Angeles County earlier this year.
Namir Malik Ali Greene, 23, was sentenced by United States District Judge Sherilyn Peace Garnett, who also ordered him to pay $17,084 in restitution.
Greene pleaded guilty on September 23 to one count of Hobbs Act robbery.
On the morning of April 4, Greene robbed a gas station in Marina del Rey. Greene made a purchase and remained inside of the store until all other customers left the business. After all the customers inside of the business left, Greene placed a brown paper bag on the counter and told the clerk, “Put everything in there,” according to his plea agreement.
Greene pointed what appeared to be a black semi-automatic handgun, but what in fact was a BB gun, at the clerk while demanding the money. In fear, the clerk emptied the cash register and placed $700 into the brown paper bag. Greene then fled the store.
Greene committed seven additional armed robberies from April 4 to April 8 of gas stations and convenience stores in Long Beach, Whittier, South Los Angeles, Pomona, and Culver City.
On April 15, Greene – while armed with a BB gun – carjacked the owner of a 2010 Honda Accord. On April 17, while driving the car that he had carjacked, Greene led officers on a pursuit during which he drove over 90 miles per hour, almost crashed into a bystander motorist, drove against oncoming traffic, and crashed into a curb, according to court documents.
Greene has been in federal custody since April 18.
The Bureau of Alcohol, Tobacco, Firearms and Explosives’ Orange County Violent Crime Task Force (OCVCTF) investigated this matter, with assistance from the Los Angeles Police Department’s Robbery Homicide Division and the Ontario Police Department. The OCVCTF is comprised of federal and local law enforcement agencies, including, but not limited to, the ATF, the Brea Police Department, the Santa Ana Police Department, the Orange County District Attorney’s Office, and the Fullerton Police Department.
Assistant United States Attorney Jena A. MacCabe of the Violent and Organized Crime Section prosecuted this case.
Leader of Drug Trafficking and Money Laundering Organization with Ties to Mexican Cartel Sentenced to 25 Years in PrisonRead the Press Release
BOSTON – A coordinator for a large-scale international fentanyl trafficking and money laundering conspiracy, operating on behalf of the Sinaloa Cartel in Mexico, was sentenced yesterday in federal court in Boston.
Fermin Castillo, 43, was sentenced by U.S. Senior District Court Judge William G. Young to 25 years in prison and five years of supervised release. In May 2023, Castillo was convicted along with co-defendant Andre Heraux Martinez of conspiracy to distribute over 400 grams of fentanyl and conspiracy to commit money laundering. Martinez is scheduled to be sentenced on Dec. 11, 2023.
“The flow of deadly fentanyl from Mexico to Massachusetts is directly tied to the devastation this drug has had on our communities. Castillo was close to the apex of a large-scale drug distribution network that was tied to the Sinaloa Cartel in Mexico. This organization pumped cheap, deadly fentanyl onto the streets of dozens of Massachusetts cities and towns. This sentence of 25 years reflects the gravity of his drug dealing and money laundering,” said Acting United States Attorney Joshua S. Levy.
“DEA is committed to investigating and dismantling Drug Trafficking Organizations and individuals like Mr. Castillo who are responsible for distributing lethal drugs like fentanyl to the citizens of Massachusetts,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “This substantial sentence not only holds Mr. Castillo accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic with deadly drugs in order to profit and destroy people’s lives. DEA’s top priority is combatting the opioid epidemic by working with our local, county, state and federal partners to bring to justice anyone who distributes this poison.”
“This investigation, initiated by Massachusetts State Troopers assigned to the DEA Boston Strike Force made a significant impact on the safety of our communities in the Commonwealth. The investigation interdicted dangerous drugs from being delivered and distributed to the streets of Massachusetts. The dismantling of the DTO, resulted in the conviction of dangerous, predatory drug dealers who prey on, for profit, persons struggling with addiction. I want to recognize the tireless work and also acknowledge the challenges considering this investigation began during the COVID pandemic. This joint effort is an outstanding example of what can be accomplished when law enforcement partners work together cooperatively,” said John E. Mawn Jr., Interim Colonel of the Massachusetts State Police.
In July 2020, an investigation began into a drug trafficking and money laundering organization distributing large quantities of fentanyl and laundering drug proceeds. Intercepted communications identified Castillo as the leader of the organization who coordinated fentanyl shipments into Massachusetts on behalf of a Mexico-based drug trafficking organization and coordinated the laundering of hundreds of thousands of dollars in drug proceeds.
Although Castillo resided in Mexico, he was in constant contact with co-conspirators in Massachusetts via encrypted messaging about fentanyl shipments to Massachusetts. Additionally, on a number of occasions, Castillo personally came to Massachusetts to oversee the delivery of fentanyl shipments and to launder drug proceeds before returning to Mexico.
In total, Castillo organized the drop-off of $966,030 in fentanyl proceeds for the purposes of money laundering. Additionally, evidence presented at trial established that Castillo was accountable for conspiring to distribute nearly 20 kilograms of fentanyl.
Acting U.S. Attorney Levy, DEA SAC Boyle and MSP Interim Colonel Mawn made the announcement. Assistant U.S. Attorneys Leah B. Foley and Stephen W. Hassink of the Narcotics & Money Laundering Unit prosecuted the case.
This case 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. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Leader of Miami Crew Sentenced to 63 Months in Prison for Defrauding Banks and Cryptocurrency Exchange of More Than $4 MillionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ESTEBAN CABRERA DA CORTE, a/k/a “Esteban Cabrera,” a/k/a “Esteban Da Corte,” a/k/a “Steban,” was sentenced to 63 months in prison by U.S. District Judge Katherine Polk Failla for organizing a scheme to steal millions of dollars’ worth of cryptocurrency and trick U.S. banks into refunding the millions used to purchase that cryptocurrency by using, in part, personal identifying information stolen from other people.
U.S. Attorney Damian Williams said: “Esteban Cabrera Da Corte orchestrated a scheme to steal millions of dollars by buying cryptocurrency using false and stolen identities, then deceiving U.S. banks regarding those transactions. Cabrera Da Corte now faces years in prison for this crime. This sentencing should send a clear message that we, together with our law enforcement partners, will continue to zealously prosecute cryptocurrency scammers and money launderers.”
According to the Indictment, public filings, and statements made in court:
From at least in or about 2020 through at least in or about March 2020, CABRERA DA CORTE and his co-conspirators engaged in a scheme to deceive U.S. banks and a leading cryptocurrency exchange platform (the “Cryptocurrency Exchange”) by purchasing more than $4 million in cryptocurrency and then falsely claiming that the cryptocurrency purchase transactions were unauthorized, deceiving the U.S. banks and the Cryptocurrency Exchange into reversing those transactions and redepositing the money into the bank accounts that the defendants controlled. The defendants then withdrew the money from the bank accounts while also keeping the cryptocurrency for themselves.
To effect this scheme, CABRERA DA CORTE and his co-conspirators opened accounts with the Cryptocurrency Exchange, frequently using photos of fake U.S. passports, fake drivers’ licenses, and stolen personal identifying information. The Cryptocurrency Exchange accounts were linked to bank accounts that the defendants controlled. The defendants used money that had been deposited into the linked bank accounts, frequently through a series of cash deposits made using ATMs, to purchase cryptocurrency. That cryptocurrency was then quickly transferred to other cryptocurrency wallets outside of the Cryptocurrency Exchange that were controlled by the defendants and their co-conspirators. After the cryptocurrency was transferred, the defendants made telephone calls to the U.S. banks during which they falsely represented that the cryptocurrency purchases were unauthorized, leading the banks to reverse the transactions.
The operation of this scheme by the defendants resulted in U.S. banks processing more than $4 million in fraudulent reversals and the Cryptocurrency Exchange losing more than $3.5 million worth of cryptocurrency.
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In addition to his prison term, CABRERA DA CORTE, 27, of Miami, Florida, was ordered to pay restitution of $3,578,786.69 and forfeiture of $1,200,000.
Mr. Williams praised the outstanding work of Homeland Security Investigation’s El Dorado Task Force.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U. S. Attorneys Emily Deininger and Josiah Pertz are in charge of the prosecution.
Laplace Resident Pleads Guilty to Wire Fraud for Defrauding Cares Act Financial Assistance ProgramRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BASHIR SCHOFIELD, age 24, a resident of LaPlace, Louisiana, pleaded guilty today before United States District Judge Greg G. Guidry to a bill of information charging him with wire fraud, in violation of Title 18, United States Code, Section 1343, for his role in preparing and filing false applications for loans related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to court documents, BASHIR SCHOFIELD and two relatives, submitted applications to fraudulently obtain money from Paycheck Protection Program (PPP) loans and Economic Injury Disaster (EIDL) loans. SCHOFIELD and his relatives submitted loan applications that falsely represented that the applicant had a sole proprietorship and generated substantial income from that business. SCHOFIELD and his relatives’ false representations included the overinflation of the business’s gross receipts, as well as the claim that the loan proceeds were for business purposes when, in fact, the defendants intended to use the money for personal purposes. Indeed, the entities either did not exist at all or earned far less money than BASHIR SCHOFIELD and his relatives represented.
For example, on about April 14, 2021, SCHOFIELD completed and submitted a false PPP loan application in the name of an entity he claimed to control, “Vison Six, LLC.” SCHOFIELD falsely stated in the application that SCHOFIELD’s gross income from Vison Six in 2019 was $100,000 and that the money would be used for business-related purposes. In fact, Vison Six was not incorporated until November 2020 and performed no business and had no gross receipts in 2019. As a result of the fraudulent application, SCHOFIELD received approximately $20,833. Additionally, SCHOFIELD and his relatives collectively submitted false applications for several other entities, including “AfroTouch, Inc.,” “Afromerica Touch 360, LLC,” and “Just Jocin.”
BASHIR SCHOFIELD faces a maximum term of imprisonment of twenty (20) years in prison, up to three years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee. Sentencing before Judge Guidry is scheduled for March 5 2024.
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Lake Placid man pleads guilty to producing child pornographyRead the Press Release
MIAMI – On Nov. 28, a Lake Placid man entered a guilty plea in federal court to production of visual depictions involving sexual exploitation of minors.
Frederick Anderson Bowen, 76, of Lake Placid, Florida, recorded himself performing oral sex on a child. Highlands County Sheriff’s Office deputies located the video saved on Bowen’s cellphone.
Sentencing is scheduled for Feb. 27, 2024, before U.S. District Judge Aileen M. Cannon. Bowen faces up to 30 years in federal prison, and up to lifetime supervised release.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Sheriff Paul Blackman of Highlands County Sheriff’s Office, announced the guilty plea.
FBI Miami, Fort Pierce Resident Agency and Highlands County Sheriff’s Office investigated the case. Assistant U.S. Attorney Christopher Hudock is prosecuting it.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
To report an incident involving the possession, distribution, receipt, or production of child pornography, you can file a report on the National Center for Missing & Exploited Children (NCMEC)'s website at www.cybertipline.com, call 1-800-843-5678, or contact the FBI directly at 1-800-CALL-FBI (1-800-225-5324).
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-14028.
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La Crosse Man Sentenced to 6 ½ Years for Possessing Methamphetamine for Distribution & Illegally Possessing A FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Issac Santana, 26, La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 6 ½ years in prison for possessing with intent to distribute 50 grams or more of methamphetamine and possessing a firearm as a convicted felon. Santana pleaded guilty to these charges on August 30, 2023. This period of incarceration will be followed by 5 years of supervised release.
On November 19, 2022, officers in La Crosse checked on a vehicle that had been parked and running for approximately three hours. Officers found Santana asleep in the driver’s seat. Officers searched Santana and his vehicle and found approximately 193 grams of methamphetamine and over 30 grams of fentanyl packaged for distribution. They also found ammunition and over $1,500 in cash.
Santana was arrested and charged in La Crosse County Circuit Court for felony drug crimes, and was released on a signature bond on January 9, 2023. He failed to appear for a hearing in March, and a bench warrant was issued for his arrest.
Officers attempted to arrest Santana on this warrant on April 6. Officers saw the defendant leave his house on a scooter and attempted to stop him. Santana fled from the officers, and after a pursuit, officers arrested Santana. Santana was carrying a loaded 9 mm semiautomatic handgun, along with over 100 grams of methamphetamine and 6 grams of fentanyl, all packaged for distribution. Santana also had over $1,250 in cash. He admitted to selling both methamphetamine and fentanyl in a post-arrest interview. Santana admitted that he knew he was prohibited from possessing a firearm because he had a previous felony conviction.
At the sentencing hearing, Judge Conley remarked on the danger Santana posed to the community by combining drug dealing and carrying a loaded firearm. Judge Conley further noted that Santana was selling the same dangerous drugs that Santana had been addicted to most of his life. The judge found that Santana’s actions had made him a true threat to society.
The charges against Santana were the result of an investigation conducted by the La Crosse Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kathryn Ginsberg prosecuted 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.
King Kong tools settles claims of customs fraud for $1.9 millionRead the Press Release
ATLANTA – A German company, KingKong-Tools GmbH & Co KG, and its American subsidiary, King Kong Tools, LLC (collectively “King Kong”), will pay $1.9 million to settle allegations of customs fraud under the False Claims Act. The government alleged that King Kong was falsely labelling its tools as “made in Germany” when, in fact, the tools were made in China. By misrepresenting the origin of the tools, King Kong avoided paying higher tariffs.
“Companies cannot avoid paying tariffs by misrepresenting product manufacturing information,” said U.S. Attorney Ryan K. Buchanan. “The Department of Justice will work diligently to uncover these schemes, and those companies involved in such misconduct will be compelled to pay tariffs owed, as well as penalties.”
“Stopping businesses from cheating the customs system not only prevents them from defrauding our government, but also prevents unfair competitive advantages that harm the labor market,” said Acting Special Agent in charge Travis Pickard who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Hopefully, the result of this case sends a clear message that HSI and its partners are watching and will hold you accountable for your actions.”
“Customs fraud in international trade of manufacturing goods result in an unfair advantage of legitimate businesses,” said Gregory Alvarez, Customs and Border Protection’s Director of Field Operations, Atlanta. “This enforcement action is another example of how CBPs trade specialists safeguard the economic security of the United States.”
This case began when a competitor of King Kong filed a whistleblower complaint alleging that King Kong was manufacturing cutting tools in a Chinese factory. The tools were then shipped to Germany, where some additional processing was performed on some (but not all) of the tools. The tools were then shipped to the United States and declared to be “German” products. If the products had been correctly described as Chinese products, King Kong would have been required to pay a 25% tariff on Chinese goods. By falsely describing the tools as “German,” King Kong improperly avoided paying these tariffs.
This civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia under the False Claims Act, U.S. ex rel. China Pacificarbide, Inc. v. King Kong Tools, LLC, et al.
The False Claims Act is a federal law that imposes civil liability on any person who submits false claims to the federal government or its contractors. The law imposes treble damages and civil penalties on those who submit false claims. Under the law, whistleblowers (also called “relators”) who bring fraud to the government’s attention share in any recovery obtained by the government. Here, the relator will receive $286,861 from the settlement in this matter, plus attorney’s fees.
This case was investigated by Homeland Security Investigations and Customs and Border Protection, Office of Field Operations.
The civil settlement was reached by Assistant U.S. Attorneys Anthony DeCinque and Akash Desai. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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.
Justice Department Announces Charges in Connection with Foiled Plot to Assassinate U.S. Citizen in New York CityRead the Press Release
Today in the Southern District of New York, a superseding indictment was unsealed alleging murder-for-hire charges against Indian national Nikhil Gupta, aka Nick, 52, in connection with his participation in a foiled plot to assassinate a U.S. citizen in New York City. Czech authorities arrested and detained Gupta on June 30, 2023 pursuant to the bilateral extradition treaty between the United States and the Czech Republic.
According to court documents, earlier this year, an Indian government employee (CC-1), working together with others, including Gupta, in India and elsewhere, directed a plot to assassinate on U.S. soil an attorney and political activist who is a U.S. citizen of Indian origin residing in New York City (the Victim).
Gupta is an Indian national who resides in India, is an associate of CC-1 and has described his involvement in international narcotics and weapons trafficking in his communications with CC-1 and others. CC-1 is an Indian government agency employee who has variously described himself as a “Senior Field Officer” with responsibilities in “Security Management” and “Intelligence,” and who also has referenced previously serving in India’s Central Reserve Police Force and receiving “officer[] training” in “battle craft” and “weapons.” CC-1 directed the assassination plot from India.
In or about May 2023, CC-1 recruited Gupta to orchestrate the assassination of the Victim in the United States. The Victim is a vocal critic of the Indian government and leads a U.S.-based organization that advocates for the secession of Punjab, a state in northern India that is home to a large population of Sikhs, an ethnoreligious minority group in India. The Victim has publicly called for some or all of Punjab to secede from India and establish a Sikh sovereign state called Khalistan, and the Indian government has banned the Victim and his separatist organization from India.
At CC-1’s direction, Gupta contacted an individual whom Gupta believed to be a criminal associate, but who was in fact a confidential source working with U.S. Drug Enforcement Administration (DEA) (the CS), for assistance in contracting a hitman to murder the Victim in New York City. The CS introduced Gupta to a purported hitman, who was in fact a DEA undercover officer (the UC). CC-1 subsequently agreed in dealings brokered by Gupta to pay the UC $100,000 to murder the Victim. On or about June 9, CC-1 and Gupta arranged for an associate to deliver $15,000 in cash to the UC as an advance payment for the murder. CC-1’s associate then delivered the $15,000 to the UC in Manhattan.
In or about June 2023, in furtherance of the assassination plot, CC-1 provided Gupta with personal information about the Victim, including the Victim’s home address in New York City, phone numbers associated with the Victim, and details about the Victim’s day-to-day conduct, which Gupta then passed to the UC. CC-1 directed Gupta to provide regular updates on the progress of the assassination plot, which Gupta accomplished by forwarding to CC-1, among other things, surveillance photographs of the Victim. Gupta directed the UC to carry out the murder as soon as possible, but Gupta also specifically instructed the UC not to commit the murder around the time of anticipated engagements scheduled to occur in the ensuing weeks between high-level U.S. and Indian government officials.
On or about June 18, masked gunmen murdered Hardeep Singh Nijjar outside a Sikh temple in British Columbia, Canada. Nijjar was an associate of the Victim, and like the Victim, was a leader of the Sikh separatist movement and an outspoken critic of the Indian government. On or about June 19, the day after the Nijjar murder, Gupta told the UC that Nijjar “was also the target” and “we have so many targets.” Gupta added that, in light of Nijjar’s murder, there was “now no need to wait” on killing the Victim. On or about June 20, CC-1 sent Gupta a news article about the Victim and messaged Gupta, “[i]t’s [a] priority now.”
Gupta is charged with murder-for-hire and conspiracy to commit murder-for-hire. Each count carries a maximum statutory penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA’s New York Division and the Counterintelligence Division of the FBI’s New York Field Office are investigating the case, with valuable assistance provided by the DEA’s Special Operations Division, DEA’s Vienna Country Office, FBI’s Prague Country Office, Justice Department’s Office of International Affairs, and Czech Republic’s National Drug Headquarters.
Assistant U.S. Attorneys Camille L. Fletcher, Ashley C. Nicolas, and Alexander Li for the Southern District of New York are prosecuting the case with assistance from Trial Attorneys Christopher Cook and Robert McCullers of the National Security Division’s Counterintelligence and Export Control Section, as well as Trial Attorney A.J. Dixon of the National Security Division’s Counterterrorism Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Nikhil Gupta Superseding IndictmentJenks Woman Sentenced and Ordered to Repay More than $1.2 Million in RestitutionRead the Press Release
U.S. District Judge Terence C. Kern sentenced Lauren Michelle Owen, 40, of Jenks, to 27 months in prison followed by five years of supervised release. In January, Owen pleaded guilty to bank fraud, wire fraud, and tax evasion. Judge Kern further ordered Owen to pay more than $1.2 million in restitution.
“Lauren Owen engaged in multiple fraudulent schemes, including taking advantage of her employer’s kindness solely to enrich her luxurious lifestyle at the expense of others,” stated U.S. Attorney Clinton Johnson. “This sentencing and restitution will show criminals that fraudulent schemes will not go unpunished.”
“Miss Owen thought stealing from the government would be a victimless crime, but the money set aside for COVID relief was designed to help small businesses stay open through the pandemic,” said Christopher J. Altemus Jr., special agent in charge of the IRS Criminal Investigation’s Dallas Field Office. “Miss Owen’s actions kept money out of the hands of others who would have used it to pay employees and keep their businesses open, as it was intended. Instead, she used it and other illegal financial activities to elevate her lifestyle. CI and our partners have ensured she has been held accountable for her actions.”
According to court documents, in 2010, Lauren Owen was hired by her employer as a secretary. She gained the trust of her employer and was eventually promoted to vice president and sole financial officer. Owen’s duties included handling the financial books and records for the company, paying bills and preparing checks for legitimate business expenses, overseeing payroll, hiring and firing personnel. She would make unauthorized checks to herself, payments on her personal credit cards, and unauthorized wage payments to herself from her employer’s accounts. These fraudulent transactions totaled more than $750,000 loss to her employer.
After losing her job, in November of 2021, Owen devised a plan to defraud the Small Business Association (SBA) after Congress passed the CARES Act in response to the Coronavirus (COVID-19) pandemic and economic crisis. She falsified an application for a loan, on behalf of Platinum Assets, LLC, a company she owned and controlled. She lied on the application stating that she’d never been criminally charged, when in fact she had previously been arraigned in state court for embezzlement. She falsely signed and certified the application that the information she provided was true and correct, to the best of her knowledge. After approving the loan, the SBA deposited more than $384,000 in Owen’s bank account whereafter Owen improperly misapplied the loan proceeds by purchasing a 2018 Chevrolet Corvette, a 40-foot yacht and paying off a loan on a 2018 Ford F-250.
From 2016 through 2020, Owen further attempted to evade substantial income tax from her misconduct. She failed to report her extra, illegal income she was received from her embezzlement. Owen admitted that she tried to hide her income by making unauthorized transactions. She knew reporting her income correctly would leave her owing more than $61,000 in unpaid taxes and agreed to pay the IRS an additional $67,800 in other unpaid taxes.
Owen was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility at a later date.
The Internal Revenue Service – Criminal Investigation and the U.S. Secret Service conducted the investigation. Assistant U.S. Attorney David D. Whipple prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit justice.gov/coronavirus and justice.gov/coronavirus/combatingfraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form
Jefferson Parish Woman Sentenced for Defrauding Buyer of Personal Protective EquipmentRead the Press Release
NEW ORLEANS - CYNTHIA CARONNA, a resident of Jefferson Parish, was sentenced on November 28, 2023, for conspiring with her co-defendant, Frank LaBruzzo, and with a resident of the United Kingdom, to defraud a business that was seeking to purchase personal protective equipment (PPE) at the height of the COVID-19 pandemic, announced U.S. Attorney Duane A. Evans.
U.S. District Judge Greg G. Guidry sentenced CARONNA to five years’ probation, six months of home detention, and $1,012,500 in restitution.
CARONNA and the UK resident formed a business venture to offer the sale of PPE, and selected LaBruzzo to serve as the venture’s escrow agent. LaBruzzo (an attorney employed as an investigator with the Louisiana Attorney General’s Office) was presented to would-be buyers of PPE, as a trustworthy escrow agent who would safeguard the buyer’s purchase funds in an escrow account until the PPE was satisfactorily delivered.
According to court records, the conspirators agreed that LaBruzzo would disburse the would-be buyer’s funds despite the would-be buyers having neither received PPE nor consented to the disbursements. The conspirators also agreed that each would receive portions of the would-be buyer’s funds without the would-be buyers’ knowledge or consent.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at
866-720-5721 or via the NCDF Web Complaint Form at:
https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
This case was being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Chandra Menon of the Public Integrity Unit is in charge of the prosecution.
Ithaca Man Sentenced to 150 Months for Attempted Enticement of a MinorRead the Press Release
SYRACUSE, NEW YORK – Joseph Swansbrough, 34, of Ithaca New York, was sentenced today to 150 months (12.5 years) in federal prison for attempting to entice and coerce a minor to engage in sexual activity, announced United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his previously entered guilty plea, Swansbrough admitted that, between September and October 2021, he exchanged sexually explicit messages online with an undercover officer posing as a 10-year-old child in an attempt to entice the child into engaging in sexual acts with him. Swansbrough also admitted that, on October 12, 2021, he traveled from his home in Tioga County to a prearranged meeting location in Broome County, New York, with the intent to engage in sexual acts with the 10-year-old child. Swansbrough was arrested upon arrival at the location and was found in possession of candy he had promised to bring to the child.
United States District Judge, Glenn T. Suddaby, also sentenced Swansbrough to a 25-year term of supervised release to begin after he serves his term of imprisonment. Swansbrough also will be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI) and Computer Crimes Unit (CCU). The case was prosecuted by Assistant United States Attorneys Geoffrey J. L. Brown, Jessica N. Carbone, and Adrian S. LaRochelle as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Illegal Alien with Prior Felony Conviction Indicted for Possessing A FirearmRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Luis Armando Rodriguez-Padilla (27, Fort Myers) with illegal reentry by a previously convicted felon, possession of a firearm by an alien unlawfully in the United States, and possession of a firearm by a convicted felon. If convicted on all counts, Rodriguez-Padilla faces a maximum penalty of 25 years in federal prison.
According to the indictment, on October 29, 2023, Rodriguez-Padilla possessed an Interarms revolver. Rodriguez-Padilla had previously been deported after being convicted in state court of conspiracy to break and enter. As an alien and convicted felon, Rodriguez-Padilla is prohibited from possessing a firearm under federal law.
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.
This case was investigated by the Collier County Sheriff’s Office and Homeland Security Investigations with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Benjamin S. Winter.
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.
Humboldt Iowa Man Pleads Guilty to Possession of a Firearm by a Prohibited PersonRead the Press Release
A convicted felon found in possession of a stolen gun plead guilty on November 28, 2023, in federal court in Sioux City.
Joseph Isiah Hardy, Sr., age 37, from Humboldt, Iowa, was convicted of Possession of a Firearm by a Prohibited Person.
In a plea agreement, Hardy admitted that he knowingly possessed a firearm even though he had been previously convicted of a felony punishable by imprisonment for a term exceeding one year and that he knew he had been previously convicted of that felony. Hardy further admitted the gun was stolen.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Hardy remains in custody of the United States Marshal, pending sentencing. Hardy faces the following maximum penalties: (1) not more than 15 years’ imprisonment without the possibility of parole; (2) a fine of not more than $250,000; (3) a mandatory special assessment of $100; and (4) a term of supervised release of not more than 3 years.
The case was investigated by Humboldt Police Department and is being prosecuted by Assistant United States Attorney Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-3010.
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Honduran National Pleads Guilty to Being an Illegal Alien in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – JOSE SANCHEZ-MORADEL, age 35, a native of Honduras, plead guilty on November 28, 2023 to being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, on April 26, 2023, the Mandeville Police Department responded to a call by an individual who said that her ex-boyfriend, SANCHEZ-MORADEL, was trying to enter her residence in Mandeville, Louisiana. The Mandeville Police Department also learned that SANCHEZ-MORADEL drove a white truck. Police then saw a white 2016 Chevrolet Silverado leaving the area near the ex-girlfriend’s apartment complex. Mandeville Police then stopped the truck and detained the driver who was later confirmed to be SANCHEZ-MORADEL.
The visibly distressed ex-girlfriend told police that SANCHEZ-MORADEL forcibly entered her residence and subsequently fled in the white truck. After officers conducted a search of SANCHEZ-MORADEL incident to his arrest, they discovered a handgun magazine containing ten (10) .22 LR calliber rounds in his shorts pocket. Officers also found a Husky multi tool knife with a damaged blade tip. Officers then searched his vehicle and located a Glock Model G44, .22 LR caliber handgun inside the center console. This firearm was manufactured in another state and shipped in interstate commerce to Louisiana.
SANCHEZ-MORADEL faces a maximum term of imprisonment of 15 years, a fine of up to $250,000, up to three (3) years of supervised release, and a $100 mandatory special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement Agency and the Mandeville Police Department in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Grand jury charges former Clermont housing official with federal program theftRead the Press Release
CINCINNATI – The former executive director of the Clermont Metropolitan Housing Authority (CMHA) was indicted for allegedly stealing tens of thousands of dollars intended to assist low-income residents of Clermont County, Ohio.
Timothy Holland, 56, of Williamsburg, Ohio, self-surrendered at U.S. District Court in Cincinnati today.
According to the indictment, Holland served from 2012 until 2019 as the executive director for CMHA, the United States Department of Housing and Urban Development (HUD) recognized public housing authority for Clermont.
CMHA received more than $5.9 million in annual federal funds in both 2018 and 2019 to operate and maintain public housing units as well as provide housing assistance to low-income families and individuals. It is alleged Holland stole at least $70,440 from the agency for his personal use during those calendar years.
“Mr. Holland allegedly used his position to convert money for his personal gain that was intended to help low-income and elderly and disabled individuals,” said Special Agent-in-Charge Shawn Rice with the U.S. Department of Housing and Urban Development Office of Inspector General. “HUD OIG remains steadfast in its commitment to working with federal prosecutors and law enforcement partners to aggressively pursue those who engage in activities that threaten the integrity of HUD programs.”
Holland is charged with two counts of federal program theft, a crime punishable by up to 10 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Shawn Rice, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General, Mid-Atlantic Region; Ohio Attorney General Dave Yost and Ohio Auditor Keith Faber announced the charges. Assistant United States Attorney Ebunoluwa A. Taiwo is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Minnesota Man Charged with Gun & Drug Crimes
Jayvon E. Jones-Shields, 24, Rochester, Minnesota, is charged with being a felon in possession of a firearm, possessing a loaded firearm in furtherance of a drug trafficking crime, and possessing cocaine with intent to distribute. The indictment alleges that on October 18, 2023, he possessed a loaded .22 caliber revolver and cocaine with intent to distribute. Jones-Shields was arrested in La Crosse on October 18.
If convicted, Jones-Shields faces a maximum penalty of 15 years in federal prison on the charge of being a felon in possession of a firearm, and 20 years on the charge of possessing cocaine for distribution. The charge of possessing a loaded firearm in furtherance of a drug trafficking crime has a mandatory minimum penalty of 5 years and a maximum of life. Federal law requires that any penalty imposed for the charge of possessing a firearm in furtherance of a drug trafficking crime be served consecutive to any other sentence imposed.
The charges against Jones-Shields are the result of an investigation by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney William Levins is handling the prosecution.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Madison Man Charged with Distributing Heroin
James Davis Jr., 35, Madison, Wisconsin, is charged with 12 counts of distributing heroin. The indictment alleges that he distributed heroin on 12 occasions from June through September 2023.
If convicted, Davis Jr. faces a maximum penalty of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Madison Police Department and Drug Enforcement Administration. Assistant U.S. Attorneys William Levins and Aaron Wegner are handling the prosecution.
Mexican National Charged with Illegally Reentering U.S.
Jose Luis Bautista Cruz, 26, a citizen of Mexico found in Clark County, Wisconsin, is charged with being found in the United States after having been removed. The indictment alleges he was found in the United States on November 12, 2023.
The charge against him is the result of an investigation by U.S. Immigration & Customs Enforcement and the Colby-Abbotsford Police Department. Assistant U.S. Attorneys Louis Glinzak and Aaron Wegner are handling the prosecution.
Four Members of Armed Fentanyl, Methamphetamine, and Cocaine Trafficking Conspiracy Convicted Following Federal Jury TrialRead the Press Release
INDIANAPOLIS- A federal jury has found four men guilty for their roles in a multi-state drug trafficking ring that dealt large quantities of fentanyl, methamphetamine, and cocaine in Indianapolis. Seventeen other members of the conspiracy entered guilty pleas prior to trial.
Keith Jones, aka “Keybo” 57, of Indianapolis, was found guilty of conspiracy to distribute drugs and engage in money laundering, leading a continuing criminal enterprise, and illegally possessing multiple handguns and an assault rifle, among other charges. Jones’s convictions carry a mandatory sentence of life in prison.
Kevin Backstrom, 57, of Los Angeles, California, was found guilty of conspiracy to distribute drugs and engage in money laundering. Backstrom’s convictions carry a potential sentence of no less than 10 years up to life in prison.
Anthony Moore, 37, of Indianapolis, was found guilty of conspiracy to distribute drugs, among other charges. Moore’s convictions carry a potential sentence of no less than 10 years up to life in prison.
Herman Wesley Tavorn, 42, of Indianapolis, was found guilty of possessing with intent to distribute fentanyl. Tavorn’s conviction carries a potential sentence of no less than 10 years up to life in prison.
The jury acquitted a fifth defendant, Charles Davis, 38, of Indianapolis, who was charged with one count of possession with intent to distribute controlled substances.
These individuals were charged along with seventeen others in a series of federal indictments beginning in July of 2022, for their roles in this drug trafficking ring.
According to court documents and evidence introduced at trial, Jones orchestrated other co-defendants, including Moore and Tavorn, to distribute fentanyl, methamphetamine, and cocaine throughout Indianapolis. Jones obtained the drugs from Backstrom in California, which were sent to Jones in parcels using fictitious names. The evidence showed that Jones received the parcels, repackaged them, and distributed them to others for them to redistribute to others. At one point, Jones enlisted his twelve-year-old daughter to assist him in the distribution of the controlled substances. The evidence also showed that Jones and his co-defendants disguised the money they received from drug trafficking as Jones sent a portion of it to Backstrom in California.
During the execution of search warrants in this case, law enforcement seized approximately forty-three firearms, $300,000 in U.S. currency, four ounces of methamphetamine, one kilogram of cocaine, and two kilograms of fentanyl.
The seventeen other defendants have plead guilty and will be sentenced at a later date.
The Drug Enforcement Administration, IRS Criminal Investigations, Indianapolis Metropolitan Drug Task Force, Hamilton/Boone County Drug Task Force, Indianapolis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. Chief U.S. District Court Judge Tanya Walton Pratt presided over the trial and will sentence the defendants at a later date.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, Chief Randal Taylor, Indianapolis Metropolitan Police Department, Major Charles Harting, Hamilton-Boone County Drug Task Force, Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division, and Justin Campbell, Special Agent in Charge, Chicago Field Office, IRS Criminal Investigations made the announcement.
U.S. Attorney Myers thanked Assistant United States Attorneys Brad Blackington and Kelsey Massa, who are prosecuting this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Fort Calhoun Man Sentenced for School ThreatRead the Press Release
Acting United States Attorney Susan Lehr announced that Nathan Joseph Bonacci, age 21, of Fort Calhoun, Nebraska, was sentenced on November 29, 2023, in federal Court in Omaha, Nebraska, for impeding or interfering with a federal officer. United States Magistrate Judge Susan M. Bazis sentenced Bonacci to 6 months’ imprisonment. There is no parole in the federal system. After Bonacci’s release from prison, he will begin a 1-year term of supervised release.
On February 10, 2022, Bonacci posted to the Discord app “I have an rpk chambered in 7.62 a 556 Ak74 and 2m1911s. This Monday 2/14/22 I will drive my car (filled with 5k worth of amo) to Roosevelt Elementary School in Council Bluffs, IA (517 N 17th Street, Council Bluffs, IA 51501) and I will kill as many people as I can find at 09:00 (9 am) @ everyone I will drive my blue Nissan Ultima (plate number [redacted] (nebraska plates))”.
A user on the iFunny app came across the post and forwarded it via email to the principal of Roosevelt Elementary School, who then advised law enforcement. The FBI assigned a Special Agent to investigate the potential threat. The FBI investigation included obtaining emergency disclosures from Yahoo! and Twitter, which lead to identifying the IP address used to post the threat was maintained by Cox Communications. Additional investigation revealed the Cox Communications subscriber was Bonacci’s brother. The FBI Special Agent interviewed Bonacci’s brother, who recognized the username used to post the threat was Bonacci’s. Bonacci was subsequently located and interviewed.
Bonacci acknowledged he transmitted the communication but indicated he posted it to a group of his friends because he thought his friends would find it to be funny.
Bonacci’s false threat impeded the assigned Special Agent from accomplishing his other assigned duties and interfered with his ability to work on legitimate investigations due to a need to determine if this was a valid threat to an elementary school.
This case was investigated by the Federal Bureau of Investigation.
Fort Belknap man suspected of making a hoax threat to blow up Dodson school arraigned on chargesRead the Press Release
GREAT FALLS — A Fort Belknap man suspected of making threats to blow up the school in Dodson, near the Fort Belknap Indian Reservation, was arraigned Tuesday on charges, U.S. Attorney Jesse Laslovich said today.
Jacob Erwin Wilson, 40, pleaded not guilty to an indictment charging him with false information and hoaxes. If convicted of the most serious crime, Wilson faces a maximum of five years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge John T. Johnston presided. Wilson was detained pending further proceedings.
As alleged in the indictment, on Aug. 29, near Dodson, near the Fort Belknap Indian Reservation, Wilson placed a phone call to 911 and to the Dodson school and stated he was going to blow up the school.
An indictment is merely an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorney Jeffrey K. Starnes is prosecuting the case. The FBI and Fort Belknap Law Enforcement Services conducted the investigation.
PACER case reference. 23-111.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl
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Former Sharon Resident Sentenced to 27 Months in Prison for Drug TraffickingRead the Press Release
PITTSBURGH, PA - Shantell Griggs was sentenced to 27 months in prison for cocaine trafficking, United States Attorney Eric G. Olshan announced today.
Griggs, age 45, formerly of Sharon, Pennsylvania, was sentenced by United States District Judge Cathy Bissoon. Judge Bissoon ordered Griggs to serve six years of supervised release following his prison sentence.
Griggs pled guilty earlier this year to conspiring to distribute cocaine between July 2019 and November 2021 in Sharon, Mercer County. Griggs also pled guilty to possessing with intent to distribute cocaine on September 1, 2021, in Sharon. He stipulated to being responsible for the distribution of 300 grams of cocaine.
Craig W. Haller prosecuted this case on behalf of the United States.
The Federal Bureau of Investigation conducted the investigation leading to the convictions and sentence 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 of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.