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Tuesday 3 October 2023
Springville nurse arrested, charged with possession and distribution of child pornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Erik Hjemdahl-Monsen, 46, of Springville, NY, was arrested and charged by criminal complaint with possession and distribution of child pornography. The charges carry a mandatory minimum penalty of five years in prison and a maximum of 20 years in prison.
Assistant U.S. Attorney Caitlin M. Higgins, who is handling the case, stated that according to the complaint, in December 2022, the National Center for Missing and Exploited Children (NCMEC) alerted the New York State Police about an image of child pornography that had been uploaded on the Kik application. The NYSP began investigating and traced the image to Hjemdahl-Monsen, an Emergency Room Nurse at Oishei Children's Hospital. On Sept. 21, 2023, investigators executed a search warrant at Hjemdahl-Monsen’s residence and seized 10 items. During the search, investigators found a video containing child pornography video on Hjemdahl-Monsen’s iPhone that appeared to be stored on the device since 2020. On Sept. 29, 2023, the NYSP alerted the FBI and turned over the 10 items seized during the search warrant. A further review of Hjemdahl-Monsen's iPhone recovered several more videos containing child pornography.
Hjemdahl-Monsen made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and was held pending a detention hearing on October 5, 2023, at 11:00 a.m.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Eugene Staniszewski, and the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Springfield Man Sentenced to 20 Years for Sexual Exploitation of 11-Year-Old Minnesota VictimRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for his sexual exploitation of an 11-year-old child victim in Minnesota.
Jeffrey Scott Saltkill, 36, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole. Saltkill will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On Dec. 1, 2022, Saltkill pleaded guilty to one count of the sexual exploitation of children. Saltkill admitted that he communicated online and via text with an 11-year-old Minnesota girl after she posted her cell phone number on the chat website Omegle. Posing as two separate persons (including a teenage boy), Saltkill engaged in graphic sexual conversations and exchanged pornographic images with the child victim. She gave Saltkill the name of her town and school, and he indicated that he would visit her in person.
When the child victim’s mother handed her daughter’s cell phone over to law enforcement, an undercover FBI agent responded to Saltkill, using the persona of the child victim. Saltkill told the undercover agent that he was in the child victim’s town, but the undercover agent told him they were out of town. Saltkill continued to communicate with the undercover agent, whom he believed to be the child victim, sending links to videos of adult pornography and urging her to engage in sexual activity.
Law enforcement officers executed a search warrant at Saltkill’s residence. Saltkill told investigators that he was addicted to communicating with children and obtaining pornographic images. He said he had similar sexual communications with four or five additional minors within the last two years.
This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the FBI, the Southwest Missouri Cyber Crimes Task Force, and the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Springfield Man Sentenced to 20 Years for Leading Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for leading a large heroin trafficking organization with his wife.
Larry K. Hayward, 40, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole.
On Aug. 24, 2022, Hayward was convicted at trial of one count of conspiracy to distribute heroin, three counts of distributing heroin, and one count of possessing heroin with the intent to distribute.
According to evidence introduced during the trial, Hayward and his wife, co-defendant Jasmine D. Steed, 36, were co-leaders of a criminal organization that consistently distributed heroin in the Springfield community from approximately Nov. 15, 2016, to Oct. 17, 2018. Court documents conservatively estimate they distributed at least three kilograms of heroin during that nearly two-year period. Hayward and Steed obtained heroin from a source in Chicago, Illinois. They distributed heroin themselves and recruited others to help distribute heroin.
Law enforcement officers executed search warrants at both of Hayward’s residences in Springfield and Waynesville, Mo. At his Waynesville residence, officers found a loaded Sig Sauer .380-caliber pistol, $5,000 in cash, and drug paraphernalia. Steed was present during the search of their Springfield residence, where officers found heroin.
Hayward has four prior felony convictions for possession of a controlled substance and a prior felony conviction for selling cocaine to an undercover officer. He also has a prior felony conviction for burglary, three misdemeanor convictions for possession of drugs, and a conviction for driving under the influence of alcohol.
Hayward is the fifth and final defendant to be sentenced in this case. Steed was sentenced on March 25, 2021, to 16 years and eight months in federal prison without parole. Co-defendants Richard J. Smith, 48, of Springfield, Rashad J. Moore, 31, of Branson, Mo. and Damario J. Brown, 33, whose address was unknown, also pleaded guilty and have been sentenced.
This case was prosecuted by Assistant U.S. Attorney Cameron A. Beaver. It was investigated by the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Spiro Resident Pleads Guilty to Distribution of MethamphetamineRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Presley Edward Lawson, age 49, of Spiro, Oklahoma, entered a guilty plea to one count of distribution of methamphetamine.
The Indictment, filed on June 14, 2023, charged Lawson with four counts of Distribution of Methamphetamine.
According to investigators, Lawson sold methamphetamine to a subject on four occasions between June and August 2022. The total amount of methamphetamine distributed was just over 855 grams.
The charges arose from an investigation by the U.S. Drug Enforcement Agency, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Sequoyah Sheriff’s Office, and the Federal Bureau of Investigation.
The Honorable D. Edward Snow, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Lawson was remanded to the custody of the U.S. Marshals Service pending sentencing.
Assistant United States Attorney James Seaman represented the United States.
Social Security employee admits creating fake children’s profiles to steal government moneyRead the Press Release
BROWNSVILLE, Texas – A 38-year-old Harlingen resident and former claims specialist with the Social Security Administration (SSA) has pleaded guilty to theft of government property, announced U.S. Attorney Alamdar S. Hamdani.
Lee Marvin Nichols admitted to creating fictitious profiles for two children that did not exist. He linked the profiles to a recently deceased man and disabled woman living in Mexico in an attempt to create a survivor benefits application.
Nichols ensured that the debit cards for the children’s benefits were sent to the address of someone with whom he was associated. He would then use the debit cards to make regular withdrawals at ATMs. When making those withdrawals, he attempted to disguise himself by using hats pulled down over his face, sunglasses, balaclavas and other clothing to conceal his appearance.
In addition, the IRS issued economic stimulus payments of $1,400 to each fictitious child.
As part of his plea, Nichols took responsibility for over $75,000 in loss to the federal government. He also agreed to pay $82,516 in restitution to the SSA and $2,800 in restitution to the IRS.
U.S. District Judge Rolando Olvera will impose sentencing Dec. 27. At that time, Nichols faces up to 10 years in federal prison and a $250,000 maximum fine.
The SSA-Office of Inspection General, Treasury Inspector General for Tax Administration and IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Brad Gray, Ben Sandel, Andrew Swartz and Jose Esquivel are prosecuting the case.
Shiprock Man Charged with Assault with a Dangerous Weapon Against a MinorRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI’s Albuquerque Field Office, announced that Darron Smith appeared in federal court on an indictment charging him with assault with a dangerous weapon against a minor and assault resulting in serious bodily injury. Smith, 23, of Shiprock, and an enrolled member of the Navajo Nation, will remain in custody pending a detention hearing set for Tuesday, October 3, 2023.
According to court documents, Smith assaulted John Doe, an individual under the age of 18, with a dangerous weapon, specifically, a knife, and the assault resulted in serious bodily injury.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Smith faces 10 years up to life imprisonment and up to 5 years of supervised release thereafter.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with the assistance of the Navajo Nation Police Department and the Navajo Department of Criminal Investigations. Assistant U.S. Attorney Matthew J. McGinley is prosecuting the case.
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Seven Defendants Sentenced for Drug and Firearm Offenses Related to 2019 Burlington MurderRead the Press Release
Burlington, Vermont – The United States Attorney’s Office announced that seven defendants have been sentenced in connection with drug and firearm charges related to the murder of Benzel Hampton on April 16, 2019, concluding today with the sentencing of James Felix. All seven defendants previously pleaded guilty to charges including conspiracy to distribute cocaine base, cocaine, and heroin, and conspiracy to use a firearm during and in relation to a drug conspiracy.
According to court records, in late 2018, Lesine Woodson came to Vermont from Orlando, Florida, to sell cocaine base in partnership with Benzel Hampton, who was also from Orlando. Shortly after arriving in Vermont, Woodson refused to use the profits of the partnership’s drug sales to pay Hampton’s bail after Hampton was arrested and then attempted to take over the business of selling to Hampton’s Burlington-area drug customers. Woodson’s actions started a feud between she and Hampton, eventually leading to the murder of Hampton.
Woodson brought several individuals to Vermont from Orlando, Florida, including her 18-year-old cousin, Brandon Sanders, her boyfriend, James Felix, and her childhood friend, Johnny Ford. During early 2019, the group sold cocaine base in and around Burlington and lived in an apartment located on Lafountain Street in Burlington that served as the base of operations for the drug and firearm conspiracies for which they have been convicted. Jennifer MacDonald and Devlin Koski worked for Woodson selling cocaine base on her behalf.
The feud between Woodson and Hampton reached its apex on April 16, 2019, after Hampton sent a text message referring to Ford and stating, “this is my city” and “checkmate.” After receiving the message, Felix and his co-conspirators borrowed a drug customer’s car, and Felix and Ford retrieved firearms. The group located Hampton at 235 North Willard Street, the residence of a drug customer of both Woodson and Hampton. Ford, Felix and Sanders waited for Hampton near the door to 235 North Willard Street. When Hampton walked out of the building, Felix tackled Hampton. Hampton, too, was armed and shooting began. Both Ford and Felix shot Hampton. Felix was also shot several times. Ford, Felix, Woodson and Sanders fled while Hampton died of his wounds. Three .380 caliber bullets shot by Ford were found in Hampton’s body, causing fatal wounds to his chest and his head, and one .22 caliber bullet shot by Felix – causing a non-fatal wound – was found in Hampton’s head.
Woodson and Felix were arrested after Felix was taken to UVM Medical Center. Angelina Pearson and another individual discarded the firearms in a wooded area in South Burlington, Vermont, where they were later located by police. Pearson and Sanders were arrested the following day during a motor vehicle stop on Interstate 95 in Enfield, Connecticut. Ford was arrested at a motel in Enfield, Connecticut, where law enforcement found more than 100 combined grams of heroin, cocaine and cocaine base, along with more than $17,000 of U.S. currency.
United States District Judge Christina Reiss imposed the following sentences, each followed by a three-year term of federal supervised release, which were advised by the Federal Sentencing Guidelines:
Johnny Ford – 180 months (15 years)
James Felix – 138 months
Lesine Woodson – 89 months
Brandon Sanders – 49 months
Angelina Pearson – Time Served
Jennifer MacDonald – Time Served
Devlin Koski – Time ServedU.S. Attorney Nikolas P. Kerest stated: “This violent, drug-involved crime occurred in the middle of the day in Burlington as children and their parents walked home from school. It is exactly the kind of horrific and disruptive crime that we work every day to eradicate. This particular case was complex and required significant collaboration between the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Burlington Police Department, and the Enfield (CT) Police Department. I am thankful for and applaud that collaboration and the determined efforts of all of our law enforcement partners who worked to solve this crime and who go to work every day seeking to make Vermont a safer place to live. You can be sure that as long as violent crime persists in the District of Vermont, the U.S. Attorney’s Office will continue to expend significant resources in this area.”
ATF Boston Field Division Special Agent in Charge James Ferguson stated: “These case results represent the epitome of law enforcement agencies working together to target and dismantle violent drug traffickers that threaten the safety and stability of our neighborhoods. The citizens of Burlington and all of Vermont have the right to a life free from gun crime. We hope our neighbors sleep a little sounder knowing ATF will never falter in our commitment to work with our local, state and federal partners to attack these dealers and remove violent criminals from our neighborhoods.”
DEA New England Field Division SAC Brian D. Boyle stated: “DEA is committed to dismantling violent drug trafficking organizations. As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and communities. This is unacceptable and will not be allowed to happen. DEA and its local, state and federal partners are dedicated to bringing to justice those that commit these crimes.”
Burlington Police Department Chief John Murad stated: “This was a horrible crime. Murder is rare but when it does arrive we seek justice. I want to acknowledge the amazing work done by all our officers on scene. I am always humbled by the men and women of the BPD for the work they do for the city and the communities they serve. I want to thank and acknowledge our detectives who put a tremendous amount of time and resources into this investigation. We are grateful for our federal partners and especially thankful for the United States Attorney’s Office for stepping up and taking on such a complex case. And we are continuously thankful to our fellow law enforcement partners for working together throughout this case – this collaboration was vital.”
The case was prosecuted by Assistant U.S. Attorneys Nate Burris and Paul Van de Graaf. Johnny Ford was represented by Natasha Sen, Esq. and Heather Ross, Esq. James Felix was represented by David Sleigh, Esq. Lesine Woodson was represented by Peter Langrock, Esq. and William Vasiliou, Esq. Brandon Sanders was represented by Mark Oettinger, Esq. Angelina Pearson was represented by John-Claude Charbonneau, Esq. Jennifer MacDonald was represented by Robert Behrens, Esq. Devlin Koski was represented by Paul Volk, Esq.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
Seminole County Resident Pleads Guilty to Second Degree MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Douglas Vaughn Switch, Jr., age 46, of Seminole, Oklahoma, entered a guilty plea to an Information charging him with one count of Murder in Indian Country – Second Degree, punishable by up to life in prison.
According to investigators, on October 23, 2023, Switch shot the victim in the head with a .380 pistol, killing her instantly. The crime occurred in Seminole County, within the boundaries of the Seminole Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, and the Seminole County Sheriff’s Department.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. The defendant was remanded to the custody of the United States Marshal.
Assistant United States Attorney Erin Cornell represented the United States.
San Diego Resident Pleads Guilty to Distributing Fentanyl that Resulted in Teenager’s DeathRead the Press Release
SAN DIEGO – Jose Daniel Ramirez of San Diego pleaded guilty in federal court today to possession with intent to distribute pills laced with fentanyl that killed a 19-year-old Poway resident, referred to in court records as K.W.P., on January 3, 2023.
Ramirez admitted to selling the fentanyl pills, disguised as oxycodone, to K.W.P. and others. In a series of text messages, Ramirez agreed to sell “2 blues” to K.W.P. After receiving and consuming the pills, K.W.P. was found dead of a fentanyl overdose a few hours later. After learning of K.W.P.’s death, Ramirez changed his phone number, informed clients of his new number, and continued to sell fentanyl.
On February 8, 2023, law enforcement officers arrested Ramirez. Following Ramirez’s arrest, investigators secured a warrant and searched his residence. There they located two Glock handguns, over 250 rounds of various ammunition and approximately 2,600 blue pills containing fentanyl along with cocaine and other drugs. One of the handguns was fully loaded with a round of ammunition in the chamber.
“It is outrageous that this defendant continued to sell fentanyl even after learning of their customers’ deaths,” said acting U.S. Attorney Andrew Haden. “Fentanyl deaths resulting from the actions of profit-seeking drug dealers will continue to be zealously prosecuted.”
“Fentanyl kills indiscriminately, and the defendants’ callous and irresponsible disregard led to the tragic death of a teenager,” said Chad Plantz, special agent in charge for HSI San Diego. “Overdoses due to fentanyl have dramatically increased – this is unacceptable. I commend the work of the HSI special agents and our partners who work tirelessly every single day to stop preventable drug poisonings from taking so many lives too soon.”
“Since 2017, the San Diego Sheriff's Department has been a leader in investigating drug overdose death cases,” said San Diego County Sheriff Kelly Martinez. “The Sheriff's Department is dedicated to identifying and arresting fentanyl dealers who provide this deadly drug to our communities. During this investigation, Mr. Ramirez continued selling this dangerous drug, but we were able to stop him in the act of selling fentanyl to an 18-year-old at the time of his arrest. The actions of all involved likely saved the life of another teenager. We are proud of the collaborative effort of Sheriff's FAST Detective Morse and his federal partners with Homeland Security Investigations, Customs and Border Protection, the Drug Enforcement Administration, and the United States Attorney's Office. The Sheriff's Department will continue in these partnerships and target these dangerous drug dealers in our continued effort to combat this deadly epidemic.”
Ramirez is scheduled to be sentenced on January 3, 2024, at 9 a.m. before U.S. District Judge Ruth Bermudez Montenegro.
Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation into K.W.P.’s death. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, and the California Department of Health Care Services to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.
This case is being prosecuted by Assistant U.S. Attorneys Sean Van Demark and Dylan M. Aste.
DEFENDANT Case Number 23cr00274-RBM
Jose Daniel Ramirez Age: 20 San Diego, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
AGENCY
Homeland Security Investigations
San Diego Sheriff
Drug Enforcement Administration
Registered Sex Offender Sentenced to 15 Years in Prison and Lifetime Supervised Release for Distributing Child Pornography While on Supervised ReleaseRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 180 months in prison for distributing multiple images depicting child sexual abuse while on supervised release for possessing and receiving child pornography, U.S. Attorney Philip R. Sellinger announced.
Hugh Cohen, 65, of Elizabeth, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of distributing child pornography. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Cohen was previously convicted in federal court on a two-count indictment charging him with possessing and receiving child pornography in 2010, for which Cohen was sentenced to five years in prison followed by seven years of supervised release. Supervised release commenced on Oct. 29, 2014 and was to expire on Oct. 28, 2021.
While still on supervised release, from March 28, 2021, to April 24, 2021, Cohen engaged an undercover agent in an ongoing sexually graphic conversation on a web-based application. Cohen sent the undercover agent multiple images depicting the sexual abuse of children. Law enforcement also subsequently discovered numerous images of child sexual abuse on Cohen’s cellphone.
In addition to the prison term, Judge Martini sentenced Cohen to a lifetime term of supervised release. Cohen must also register as a sex offender.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy, and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney DeNae M. Thomas of the U.S. Attorney’s Criminal Division in Newark.
Previously Convicted Felon Caught on Snapchat Pleads Guilty to Firearm and Drug OffensesRead the Press Release
BOSTON – A Boston-area man pleaded guilty yesterday to illegally possessing a firearm with an obliterated serial number while on supervised release from an earlier federal firearm charge.
Dane Mitchell, 32, of Boston and Revere, pleaded guilty to being a felon in possession of a firearm and ammunition and possession with intent to distribute cocaine. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Jan. 9, 2024.
In 2021, an investigation into a violent Boston gang identified Mitchell as the owner of a Snapchat account that posted images of himself with firearms. Specifically, the images showed Mitchell’s face with firearms and showing bullet holes in his vehicle after he had been shot at. Mitchell is prohibited from possessing firearms and ammunition due to a 2018 federal conviction in Maine of unlawful transportation of firearms, for which he was sentenced to 27 months in prison and three years of supervised release.
During a search of Mitchell’s Revere residence in December 2021, a Taurus TCP Model 738 PT .380 caliber pistol with an obliterated serial number, loaded with four rounds of .380 caliber ammunition in the clip and one round in the chamber, five additional rounds of the same type of .380 caliber ammunition, one round of 5.7 millimeter ammunition, bags of cocaine, cocaine base, and fentanyl, cutting agents, a digital scale, blender and a press for packaging narcotics were seized.
The charge of being a felon in possession of a firearm and ammunition provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The operation was conducted is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Special assistance in the investigation was provided by the Boston, Quincy and Lynn Police Departments. Assistant U.S. Attorney Christopher Pohl of the Narcotics & Money Laundering Unit is prosecuting the case.
President of Metalhouse LLC Pleads Guilty to Conspiracy to Launder over $150 Million to Promote Russian Sanctions ViolationsRead the Press Release
WASHINGTON – John Can Unsalan, aka Hurrem Can Unsalan, 41, of Orlando, the president of Metalhouse LLC, pleaded guilty today to engaging in a conspiracy to commit money laundering to promote violations of U.S. sanctions by conducting transactions to acquire over $150 million in metal products from companies owned by Sergey Kurchenko, a sanctioned oligarch.
According to court documents, Kurchenko was sanctioned by the Department of the Treasury Office of Foreign Assets Control (OFAC) in 2015 for his role in misappropriating state assets of Ukraine or of an economically significant entity in Ukraine.
On April 13, a grand jury in the Middle District of Florida returned a 22-count indictment charging Unsalan with one count of conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act (IEEPA); 10 counts of violating IEEPA; one count of conspiring to commit international money laundering; and 10 counts of international money laundering. As set forth in court filings, between July 2018 and October 2021, Unsalan conspired with others to transfer over $150 million to Kurchenko and sanctioned companies controlled by Kurchenko. Unsalan engaged in trade with these sanctioned individuals and entities to procure steelmaking equipment and raw material despite knowing that Kurchenko and his companies were subject to U.S. sanctions that prohibited Unsalan from doing business with them. Unsalan and his business associates received tens of thousands of tons of metal products from the companies and agreed to share profits from these unlawful transactions. No licenses from OFAC were applied for or issued for these payments or transfers.
Unsalan pleaded guilty before U.S. District Judge Wendy W. Berger in Orlando, Florida, to one count of conspiracy to commit money laundering to promote violations of the IEEPA, which carries a maximum sentence of 20 years in prison. Unsalan also agreed to forfeit $160,416,948.56 in proceeds that he obtained as a result of the conspiracy. Pursuant to the terms of a plea agreement between Unsalan and the United States, the government agreed to dismiss the remaining counts of the indictment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
On Sept. 13, co-conspirator Sergey Karpushkin pleaded guilty and agreed to forfeit over $4.7 million in criminal proceeds.
The FBI Tampa and Washington Field Offices are investigating the case, with valuable assistance provided by U.S. Customs and Border Protection.
Assistant U.S. Attorney Chauncey A. Bratt for the Middle District of Florida, Trial Attorney Sean O’Dowd of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
President of Metalhouse LLC Pleads Guilty to Conspiracy to Launder over $150 Million to Promote Russian Sanctions ViolationsRead the Press Release
John Can Unsalan, aka Hurrem Can Unsalan, 41, of Orlando, the president of Metalhouse LLC, pleaded guilty today to engaging in a conspiracy to commit money laundering to promote violations of U.S. sanctions by conducting transactions to acquire over $150 million in metal products from companies owned by Sergey Kurchenko, a sanctioned oligarch.
According to court documents, Kurchenko was sanctioned by the Department of the Treasury Office of Foreign Assets Control (OFAC) in 2015 for his role in misappropriating state assets of Ukraine or of an economically significant entity in Ukraine.
On April 13, a grand jury in the Middle District of Florida returned a 22-count indictment charging Unsalan with one count of conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act (IEEPA); 10 counts of violating IEEPA; one count of conspiring to commit international money laundering; and 10 counts of international money laundering. As set forth in court filings, between July 2018 and October 2021, Unsalan conspired with others to transfer over $150 million to Kurchenko and sanctioned companies controlled by Kurchenko. Unsalan engaged in trade with these sanctioned individuals and entities to procure steelmaking equipment and raw material despite knowing that Kurchenko and his companies were subject to U.S. sanctions that prohibited Unsalan from doing business with them. Unsalan and his business associates received tens of thousands of tons of metal products from the companies and agreed to share profits from these unlawful transactions. No licenses from OFAC were applied for or issued for these payments or transfers.
Unsalan pleaded guilty before U.S. District Judge Wendy W. Berger in Orlando, Florida, to one count of conspiracy to commit money laundering to promote violations of the IEEPA, which carries a maximum sentence of 20 years in prison. Unsalan also agreed to forfeit $160,416,948.56 in proceeds that he obtained as a result of the conspiracy. Pursuant to the terms of a plea agreement between Unsalan and the United States, the government agreed to dismiss the remaining counts of the indictment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
On Sept. 13, co-conspirator Sergey Karpushkin pleaded guilty and agreed to forfeit over $4.7 million in criminal proceeds.
The FBI Tampa and Washington Field Offices are investigating the case, with valuable assistance provided by U.S. Customs and Border Protection.
Assistant U.S. Attorney Chauncey A. Bratt for the Middle District of Florida, Trial Attorney Sean O’Dowd of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
Philadelphia Resident Sentenced to Prison for Conspiracy to Distribute MarijuanaRead the Press Release
A resident of Philadelphia, PA, has been sentenced in federal court to 48 months’ imprisonment on his conviction of conspiracy to distribute marijuana, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Hector Rodriguez, age 42.
According to information presented to the court, from 2018 through 2019, Rodriguez conspired with others to traffic between 80-100 kilograms of marijuana from Philadelphia to the Western District of Pennsylvania.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Rebecca L. Silinski and Tonya Sulia Goodman prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation for the investigation leading to the successful prosecution of Rodriguez.
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.
Pharmacy Owner and Money Launderer Plead Guilty to Multiple Fraud SchemesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty pleas of NERIK ILYAYEV and MUKHIDDIN KADIROV for their respective roles in HIV medication fraud, no-fault automobile insurance fraud, and money laundering schemes totaling over $6 million. ILYAYEV pled guilty to conspiracy to commit healthcare fraud for using two different pharmacies to defraud Medicare and Medicaid in connection with HIV medication claims and to defraud no-fault automobile insurance providers in connection with other medication claims. KADIROV laundered several million dollars in fraud proceeds in connection with the HIV fraud scheme. ILYAYEV and KADIROV pled guilty today before U.S. District Judge Gregory H. Woods.
U.S. Attorney Damian Williams said: “Nerik Ilyayev brazenly defrauded Medicare and Medicaid and New York’s no-fault automobile insurance providers of over $6 million. To execute his schemes, Ilyayev sourced pharmaceuticals from illegitimate sources and worked with others to pay kickbacks to low-income individuals. Mukhiddin Kadirov facilitated the Medicare and Medicaid fraud by laundering millions in crime proceeds through shell companies. Both Ilyayev and Kadirov went to great lengths to conceal their role in these crimes, including using the identities of other people. Ilyayev and Kadirov will now pay for their crimes, and this Office will not stop pursuing those who seek to profit by defrauding our healthcare system.”
According to the Complaint, Information, and statements made in open court:
From approximately February 2021 through March 2022, ILYAYEV owned and operated a pharmacy in Manhattan (“Pharmacy-1”). ILYAYEV used Pharmacy-1 to pay illegal kickbacks to low-income HIV patients to recruit them to fill prescriptions for expensive HIV medications at Pharmacy-1 and to obtain HIV medications from unlawful sources. ILYAYEV, on behalf of Pharmacy-1, then submitted fraudulent insurance claims to Medicare and Medicaid to cover the cost of the HIV medications. In order to conceal his role in the fraud scheme, ILYAYEV used the identity of another person (“Individual-1”) and pretended to be Individual-1 to own and operate Pharmacy-1 using Individual-1’s identity. Medicare and Medicaid collectively paid approximately $5.2 million in fraudulent claims for HIV medications to Pharmacy-1.
After shutting down Pharmacy-1, ILYAYEV took control of another pharmacy in Queens, New York (“Pharmacy-2”). Again, to conceal his role in the fraud, ILYAYEV used the identity of another person (“Individual-3”) and pretended to be Individual-3 to own and operate Pharmacy-2. Pharmacy-2 submitted fraudulent insurance claims to no-fault automobile insurance providers. Pharmacy-2 defrauded the no-fault automobile insurance providers of approximately $1.2 million. In addition, Pharmacy-2 unlawfully sold pharmaceuticals to other pharmacies that ILYAYEV had obtained from illegitimate sources.
KADIROV participated in a money laundering network that primarily launders healthcare fraud proceeds (the “Money Laundering Network”) that the Federal Bureau of Investigation (“FBI”) has been investigating since approximately 2020. Members of the Money Laundering Network typically deposit checks from healthcare companies that represent healthcare fraud proceeds into New York-based bank accounts held by shell companies. The shell companies often purport to be wholesale companies and use terms like “wholesale” in the company name to make the check deposits from the healthcare companies appear less suspicious to banks and law enforcement. The conspirators controlling the shell companies collect cash typically from U.S.-based individuals who want to remit funds, often to Uzbekistan, through unlicensed channels. The conspirators controlling the shell companies then provide that cash, minus a fee, to the conspirators providing the healthcare checks. The conspirators controlling the shell companies next typically wire the check deposit proceeds from the shell companies to Chinese or other foreign companies to purchase goods from those foreign companies. The foreign companies ship the goods to importers in Uzbekistan. The importers pay the Uzbekistan-based partners of the conspirators operating the shell companies in U.S. Currency for the goods. Those Uzbekistan-based partners would then give the U.S. currency to the families and friends of the individuals who had provided the cash to the conspirators controlling the shell companies in New York.
As part of his participation in the Money Laundering Network, KADIROV laundered approximately $4.2 million of Pharmacy-1’s fraud proceeds. KADIROV used three bank accounts in the name of three shell companies that were purportedly wholesale companies (the “Shell Companies”) to launder Pharmacy-1’s fraud proceeds. The Shell Company bank accounts were opened in the name of another person (“Individual-2”), although KADIROV controlled the bank accounts. KADIROV took other steps to conceal his role in the money laundering scheme, including using a burner phone in connection with the Shell Company bank accounts, and he concealed his face when using ATMs to conduct transactions using the Shell Company bank accounts. Pharmacy-1 deposited approximately $4.2 million in checks with the Shell Companies. Consistent with the operations of the Money Laundering Network, the Shell Companies wired most of the check deposits to companies abroad, including China, Ukraine, and Russia.
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ILYAYEV, 36, of Queens, New York, pled guilty to one count of conspiracy to commit healthcare fraud, which carries a maximum potential sentence of 10 years in prison.
KADIROV, 44, of Queens, New York, pled guilty to one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and the U.S. Department of Health and Human Services, Office of the Inspector General. Mr. Williams also thanked the National Insurance Crime Bureau and the Investigations Medicare Drug Integrity Contractor for their assistance in the investigation.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney Cecilia E. Vogel is in charge of the prosecution.
Paroled murderer going to prison for more than 24 years for production of child pornographyRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Israel Rivera-Reyes, 48, of Rochester, NY, who was convicted of production of child pornography, was sentenced to serve 292 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that between August 2021 and February 2022, Rivera-Reyes had sexual intercourse with a Minor Victim on an almost daily basis, knowing that the victim was a minor. During this time, Rivera-Reyes produced multiple videos of himself engaging in sexual intercourse with the Minor Victim. At the time of his arrest, Rivera-Reyes was on parole for a March 1995 conviction of Murder 2nd Degree.
The sentencing is a result of an investigation by the Irondequoit Police Department, under the direction of Chief Scott Peters, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia. Additional assistance was provided by the Monroe County District Attorney’s Office.
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Owners of Mobile Phlebotomy Company Each Sentenced to 15 Months in Prison for Medicare FraudRead the Press Release
SACRAMENTO, Calif. — Gabriella Santibanez, 59, and her sister Lisa Hazard, 55, both of Temecula, were sentenced Monday to 15 months in prison and ordered to pay over $7.5 million in restitution for health care fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Dec, 1, 2015, and Dec, 1, 2020, Santibanez and Hazard ran a mobile phlebotomy company, PhlebXpress Inc. that provided phlebotomy and other medical collection services at patients’ homes and long-term care facilities in Sacramento and elsewhere. Santibanez and Hazard agreed to bill Medicare for services provided that were not reimbursable by Medicare. Santibanez and Hazard also agreed to bill Medicare for overstated mileage that PhlebXpress phlebotomists traveled. On average, Santibanez and Hazard caused false billing to Medicare of over 140 miles for each patient seen by PhlebXpress. Santibanez and Hazard caused a loss to Medicare of at least $7.5 million based on false billing by PhlebXpress.
In November 2020, due to “credible allegations of fraud” at PhlebXpress, Medicare instituted a payment suspension for PhlebXpress under which Medicare ceased paying PhlebXpress for the services it continued to bill Medicare.
According to court documents, between July 1, 2021, and Dec. 31, 2021, Santibanez and Hazard agreed to circumvent the payment suspension by representing to Medicare that services provided to Medicare patients were done by another company, Phlebotomy Solutions, when they were in fact being provided by PhlebXpress through its contractors and employees from PhlebXpress’s offices. Through Phlebotomy Solutions, Santibanez and Hazard agreed to bill Medicare for a non-reimbursable service, misrepresenting that it was for another reimbursable service and overstating the mileage traveled by phlebotomists in order to receive additional money from Medicare. For example, in September 2021, Phlebotomy Solutions billed Medicare for 124.6 miles of travel by a phlebotomist when in fact the phlebotomist travelled 1.4 miles. Santibanez and Hazard caused a loss to Medicare of at least $50,000 based on false billing by Phlebotomy Solutions.
This case was the product of an investigation by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Lee Bickley prosecuted the case.
Orange County felon sentenced to 20 years in prison for kidnapping at gunpoint and possession of a firearmRead the Press Release
MIAMI – On October 2, a man was sentenced to 20 years in prison for kidnapping and two felon in possession of a firearm charges.
On August 14, 2022, Marques Deon Jones, 41, of Orange County, pistol-whipped his girlfriend, an employee of a Port St. Lucie group home located near SE Walton Road, and forced her to leave with him in her vehicle. A group home supervisor, who witnessed the kidnapping, notified Port St. Lucie Police Department, who identified Jones.
The following day, the U.S. Marshals Florida Regional Fugitive Task Force located Jones outside of a private residence in Fort Pierce and arrested him. As task force officers approached Jones, he retrieved a firearm from a parked car and attempted to flee. Footage from a law enforcement body worn camera showed Jones admitting that he retrieved the firearm because he wanted officers to shoot and kill him.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and U.S. Marshal Gadyaces S. Serralta of the U.S. Marshals Service (USMS), announced the sentence imposed by U.S. District Court Senior Judge James I. Cohn, sitting in Fort Pierce.
ATF Fort Pierce Field Office and USMS investigated the case with assistance from the St. Lucie County Sheriff’s Office, Port St. Lucie Police Department and Fort Pierce Police Department. Assistant U.S. Attorneys Breezye Telfair and Justin Hoover prosecuted the case.
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 22-cr-14069.
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Operators and Attorney of Global Multimillion-Dollar Cryptocurrency Ponzi Scheme “AirBit Club” Sentenced to PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SCOTT HUGHES, CECILIA MILLAN, and KARINA CHAIREZ were sentenced today for their roles in an internationally coordinated fraud and money laundering ring that deceived individuals into investing in AirBit Club, a purported cryptocurrency mining and trading company that was, in reality, a pyramid scheme. HUGHES, an attorney who laundered approximately $18 million in AirBit Club fraud proceeds, was sentenced to 18 months in prison. MILLAN, a senior level promoter of AirBit Club, was sentenced to five years in prison. CHAIREZ, another senior level promoter of AirBit Club, was sentenced to one year and one day in prison. On September 26, 2023, PABLO RENATO RODRIGUEZ, co-founder of AirBit Club with GUTEMBERG DOS SANTOS, was sentenced to 12 years in prison. As part of their guilty pleas, the defendants in this case collectively have been ordered to forfeit their fraudulent proceeds of AirBit Club, which include seized or restrained assets consisting of U.S. currency, Bitcoin, and real estate currently valued at approximately $100 million. U.S. District Judge George B. Daniels imposed the sentences.
U.S. Attorney Damian Williams said: “Hughes, Millan, and Chairez each played a key role in perpetuating the AirBit Club pyramid scheme. At the top-tier of promoters, Millan and Chairez for years aggressively solicited investments from and misled hardworking and unsophisticated investors to line their own pockets. Hughes abused his position as an attorney to launder millions in AirBit Club fraud proceeds and to give AirBit Club the false appearance of legality. Pyramid schemes like AirBit Club would not be possible without facilitators like Hughes, Millan, and Chairez. Today’s sentences send a message that anyone who facilitates cryptocurrency investment schemes — not only those at the very top of the pyramid — will face serious consequences for such crimes.”
According to public court filings and statements made in Court:
RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, and CHAIREZ participated in a coordinated scheme in which victim-investors (the “Victims”) were induced to invest in AirBit Club based on the false promise of guaranteed profits in exchange for cash investments in club “memberships” (the “AirBit Club Scheme” or the “Scheme”). Beginning in late 2015, AirBit Club, through its founders, RODRIGUEZ and DOS SANTOS, as well as its promoters (the “Promoters”), including MILLAN and CHAIREZ, marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry. Promoters falsely promised Victims that AirBit Club earned returns on cryptocurrency mining and trading and that Victims would earn passive, guaranteed daily returns on any membership purchased.
RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, and CHAIREZ traveled throughout the United States and around the world to places in Latin America, Asia, and Eastern Europe, where they hosted lavish expos and small community presentations aimed at convincing Victims to purchase AirBit Club memberships. In furtherance of the AirBit Club Scheme, the Victims were fraudulently induced to buy memberships in cash, including in the Southern District of New York. Following a Victim’s investment, a Promoter provided the Victim with access to an online AirBit Club portal to view the purported returns on memberships (the “Online Portal”). While Victims saw “profits” accumulate on their Online Portal, those representations were false; no Bitcoin mining or trading on behalf of Victims in fact took place. Instead, RODRIGUEZ, DOS SANTOS, MILLAN, and CHAIREZ enriched themselves and spent Victim money on cars, jewelry, and luxury homes, and financed more extravagant expos to recruit more Victims.
HUGHES, an attorney licensed to practice law in California, had previously represented RODRIGUEZ and DOS SANTOS in a Securities and Exchange Commission (“SEC”) investigation related to another investment scheme known as Vizinova. He then aided RODRIGUEZ and DOS SANTOS in perpetrating the AirBit Club Scheme by, among other things, helping to remove negative information about AirBit Club and Vizinova from the internet.
In many instances, as early as 2016, Victims who attempted to withdraw money from the AirBit Club Online Portal and complained to a Promoter were met with excuses, delays, and hidden fees amounting to more than 50% of the Victim’s requested withdrawal, if they were able to make any withdrawal at all. In April 2020, another victim received a notice on the AirBit Club Online Portal that his account was closed – and principal investment lost – due to “execution of financial sustainability Reserve, policy #34 of the AirBit Club Terms and Conditions, due to the economic and financial crisis caused by (Covid-19).”
RODRIGUEZ, DOS SANTOS, HUGHES, CHAIREZ, and MILLAN sought to conceal the AirBit Club Scheme, as well as their respective control of the proceeds of that Scheme, by requesting that Victims purchase memberships in cash, using third-party cryptocurrency brokers, and by laundering the Scheme’s proceeds through several domestic and foreign bank accounts, including an attorney trust account managed by HUGHES (the “Hughes Trust Account”). The Hughes Trust Account was ostensibly intended to maintain custody of HUGHES’s law practice’s client funds. Instead, the Hughes Trust Account was used by RODRIGUEZ, DOS SANTOS, HUGHES, CHAIREZ, and MILLAN to conceal the nature and origin of the AirBit Club Scheme’s illicit proceeds. Through that account, HUGHES directed Victim funds to the personal expenses of RODRIGUEZ, DOS SANTOS, CHAIREZ, MILLAN, and himself, and funded promotional events and sponsorships designed to further promote the AirBit Club Scheme.
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HUGHES, 47, of Newport Beach, California, was also sentenced to three years of supervised release. MILLAN, 41, of Greensboro, North Carolina, was also sentenced to three years of supervised release. CHAIREZ, 47, of Modesto, California, was also sentenced to three months of supervised release.
DOS SANTOS, 48, of Panama City, Panama, has pled guilty to charges including wire fraud conspiracy, which carries a maximum potential sentence of 20 years in prison; money laundering conspiracy, which carries a maximum potential sentence of 20 years in prison; and bank fraud conspiracy, which carries a maximum potential sentence of 30 years in prison.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as the sentencing will be determined by the judge. DOS SANTOS is scheduled to be sentenced on October 4, 2023, at 11:00 a.m.
Mr. Williams praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force. Mr. Williams further thanked the New York Waterfront Commission for its assistance in the forfeiture process and the attorneys and investigators at the SEC whose expertise and diligence were integral to the development of this investigation.
If you believe you are a victim of the AirBit Club fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator, is available here. The U.S. Attorney’s Office will contact victims who have previously contacted the victim witness coordinator regarding the restitution process.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Kiersten A. Fletcher, Samuel L. Raymond, and Cecilia E. Vogel are in charge of the prosecution.
Omaha Man Sentenced for Distributing MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Justin Britthouer, 36, formerly of Omaha, Nebraska, was sentenced today in Lincoln, Nebraska, by Senior United States District Judge John M. Gerrard for possession of methamphetamine with intent to distribute. Britthouer was sentenced to 132 months in prison and will also serve 5 years on supervised release. There is no parole in the federal system.
On August 13, 2022, Britthouer was stopped for erratic driving by the Beatrice Police Department. While performing standardized field sobriety tests, Britthouer admitted there were drugs in the vehicle he had been driving. The resulting search of the vehicle located three bags of methamphetamine. The methamphetamine was tested by the Nebraska State Patrol Crime Lab, which confirmed it was methamphetamine. The total amount seized was at least 68 grams pure methamphetamine. Britthouer admitted to distributing drugs in southeast Nebraska during an interview and was arrested.
This case was investigated by the Beatrice Police Department.
Northeast Georgian Sentenced to 20 Years in Prison for Distributing Child Sexual Abuse MaterialRead the Press Release
ATHENS, Ga. –A Madison County, Georgia, resident convicted by a federal jury of distributing and possessing child sexual abuse material (CSAM) days after GBI investigators discovered evidence that he was continuing to distribute CSAM and had concurrently cut off his ankle monitor to escape custody was sentenced to serve 20 years in prison.
Christopher Snow, 36, of Carlton, Georgia, was sentenced to serve 240 months in prison to be followed by ten years of supervised release by U.S. District Judge Tilman E. Self, III today after he was convicted on June 7 of one count of distribution of child sexual abuse material and one count of possession of child sexual abuse material following a two-day trial. Snow will have to register as a sex offender upon release from federal prison. The defendant is not eligible for parole.
“Individuals participating in any part of the appalling online world of sexually abusing children—its creation, distribution or possession—will be held to account for these crimes which profoundly harm kids,” said U.S. Attorney Peter D. Leary. “This case, like so many others our office works, was successfully adjudicated thanks to the collaboration of many different groups and agencies focused on protecting children and bringing predators to justice.”
“This case serves as a strong reminder of our commitment to protecting children from the atrocities of child sexual abuse. The GBI remains resolute in its pursuit of justice and will not tolerate those who exploit the innocence of our most vulnerable population,” said GBI Director Chris Hosey.
“Snow not only distributed the disturbing material for years but didn’t stop even after he was under arrest and facing trial,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “We will continue to work with our law enforcement partners to ensure that people like this receive their full measure of justice.”
According to court documents and evidence presented at trial, GBI received a Cybertip from the National Center for Missing and Exploited Children (NCMEC) in Aug. 2018 that a Facebook user distributed suspected CSAM via Facebook Messenger. As a part of their investigation, GBI was able to determine that the user of that Facebook account resided in Carlton, Madison County, Georgia. A search warrant was executed at Snow’s residence in Carlton; law enforcement seized several electronic devices that Snow kept in a padlocked room. A digital forensic examiner later determined that those electronic devices, including the phone that was found on Snow the day of the search warrant, contained at least 45 images and 17 videos of CSAM. The material contained images of children under the age of 12.
As a condition of Snow’s pretrial release, he was required to wear an ankle monitor and not have access to electronic devices. On June 1, 2023, GBI received an additional Cybertip indicating that Snow may have been continuing to distribute CSAM on the Kik messenger app in 2022, while awaiting trial. Snow was scheduled for a federal hearing on June 2 prior to his trial but cut off his ankle monitor on June 1. A bench warrant was issued for his arrest, and he was taken into custody by the U.S. Marshals on June 5.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the GBI, with assistance from the FBI, the U.S. Marshals Service and the National Center for Missing and Exploited Children.
Assistant U.S. Attorneys Alex Kalim and Robert McCullers prosecuted the case for the Government with assistance from Deputy Criminal Chief Will Keyes.
Mexican national sentenced to 27 years in federal prison for East Texas drug trafficking violationsRead the Press Release
SHERMAN, Texas – A Mexican national has been sentenced to 27 years in federal prison for trafficking drugs through the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Fernando Alfredo Rodriguez-Reyes, 29, pleaded guilty to conspiracy to distribute meth, heroin and cocaine, and conspiracy to commit money laundering and was sentenced to 324 months in federal prison today by U.S. District Judge Amos L. Mazzant.
According to information presented in court, on June 18, 2020, Rodriguez-Reyes was arrested when law enforcement agents executed a search warrant at a residence on Lytham Drive in Dallas. The residence had been identified as a money and drug stash house distributing multi-kilogram quantities of cocaine, methamphetamine, and heroin in the Dallas, Lewisville, McKinney, Carrollton, Fort Worth, and Plano areas. During the investigation it was discovered the drugs were sourced by a party in Mexico, with ties to the Sinaloa Cartel, and shipped from Mexico, to California, and eventually to the greater Dallas area.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the Drug Enforcement Administration in Dallas and prosecuted by Assistant U.S. Attorney Ernest Gonzalez.
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Mexican National Sentenced to Federal Prison for Bribing HSI AgentRead the Press Release
EL PASO, Texas – A Mexican national residing in Seminole was sentenced in a federal court in El Paso Monday to 12 months in prison for bribery of a Homeland Security Investigations (HSI) agent.
According to court documents, Pedro Thiessen, 71, failed to declare $12,171 when entering the United States at the Ysleta Port of Entry in October 2022. Thiessen filed a petition to recover the funds and was interviewed by an HSI agent in January regarding the petition. Thiessen offered to pay the agent an unknown amount of money if the agent assisted with the recovery. The agent reported the offer to the Immigration and Customs Enforcement (ICE) Office of Professional Responsibility (OPR).
Thiessen again proposed a monetary offer to the agent during a phone call on Feb. 6. On Feb. 15, the agent arranged a meeting with Thiessen for the following day. Thiessen presented the agent with $1,000 at that meeting and was immediately arrested.
Thiessen pleaded guilty on July 7 to one count of paying a bribe to a public official.
“I appreciate the integrity and dedication of the HSI agent involved to report the bribe and lead us to the arrest of this defendant,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “We will prosecute and hold accountable anyone who offers a bribe to the honorable federal law enforcement officers serving in this district.”
“Homeland Security Investigations takes all bribery attempts of its employees extremely seriously,” said Special Agent in Charge Francisco B. Burrola for the HSI El Paso Division. “In this case, an individual offered a monetary bribe to one of our special agents in return for assistance in recovering thousands of dollars he attempted to smuggle into the country. As a result, he is facing time in prison.”
HSI and ICE OPR investigated the case.
Assistant U.S. Attorney Michael Osterberg prosecuted the case.
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Memphis man sentenced to 16 years in federal prison for series of robberiesRead the Press Release
Memphis, TN – A federal judge has issued a sentence of 16 years in federal prison to the second of two people involved in a series of armed robberies in October 2021. Memphis resident Marshall Marshall, 21, was sentenced to 192 months in federal prison for his role in a carjacking, an attempted carjacking, and robbery of a local business. U.S. District Court Judge Sheryl H. Lipman also ordered Marshall to serve three years of supervised release upon completion of his prison term. United States Attorney Kevin Ritz announced the sentencing today.
There is no parole in the federal system.
Marshall’s co-defendant, Khavah Levy, 19, was sentenced on June 29 to 96 months in prison after previously pleading guilty to aiding and abetting Marshall in the commission of the business robbery and attempted carjacking. Judge Lipman also ordered that Levy serve three years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Memphis Police Department Safe Streets Task Force.
According to information presented in court, Marshall and Levy engaged in a series of robberies in October 2021.
- On October 2, Marshall ordered a victim out of his vehicle and stole $145 in cash from him.
- Later that day, Marshall pointed a gun at a convenience store clerk and, with Levy’s help, stole $500 from the cash register.
- On October 3, the pair attempted to carjack another victim at gunpoint while that person was parked at a local grocery store.
Assistant United States Attorney Raney Irwin prosecuted this case for the United States.
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.
Martinsville Man Convicted of Trafficking Methamphetamine and CocaineRead the Press Release
ABINGDON, Va. – A Martinsville man, who possessed crystal ice methamphetamine and cocaine valued at more than $35,000, was found guilty last week following a three-day jury trial in federal court.
Octavius Myron Johnson, 39, was convicted of one count of possessing with the intent to distribute 50 grams or more of a mixture and substance containing methamphetamine, in addition to one count of possessing with the intent to distribute cocaine.
According to evidence presented at trial, in early 2023, law enforcement initiated an investigation into Johnson’s drug trafficking activities in the Glade Spring area of Washington County. Their investigation led to the execution of a search warrant at Johnson’s Martinsville residence, where over a half pound of crystal ice methamphetamine—totaling 9.7 ounces—and 83.5 grams of cocaine were recovered. Cash totaling $3,800 and other items related to drug trafficking were also seized.
Johnson is scheduled for sentencing on January 17, 2023, where he faces a mandatory minimum sentence of imprisonment of 5 years and a maximum statutory penalty of up to 40 years in prison and a fine of up to $5 million.
United States Attorney Christopher R. Kavanaugh, Virginia Attorney General Jason Miyares, and Jared Forget, Special Agent in Charge of the Drug Enforcement Administration’s Washington Division made the announcement.
The investigation of this case was conducted by the Drug Enforcement Administration, the Washington County Sheriff’s Office, and the Holston River Regional Drug Task Force, with assistance from numerous agencies including the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Henry County Sheriff’s Office, the Martinsville Police Department, the Smyth County Sheriff’s Office, and the Virginia State Police.
Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, and Assistant U.S. Attorney Kelly McGann prosecuted the case.
Los Angeles Man Sentenced to over 8 Years in Prison for Scheme to Fraudulently Obtain over $800,000 in COVID Relief FundsRead the Press Release
LOS ANGELES – A San Fernando Valley man who was the leader of a conspiracy that stole more than $800,000 in COVID-19 jobless benefits has been sentenced to 97 months in federal prison, the Justice Department announced today.
Robert Mirumyan, 31, of Porter Ranch, was sentenced by United States District Judge Percy Anderson, who also ordered him to pay $804,579 in restitution.
Mirumyan pleaded guilty in June to one count of conspiracy to commit bank fraud, admitting that he oversaw a scheme that used stolen identities to apply for COVID-era unemployment insurance (UI) benefits from the California Employment Development Department (EDD).
Mirumyan came to the attention of law enforcement when the FBI executed search and seizure warrants in March 2021 against the Beverly Hills-based U.S. Private Vaults, where investigators discovered a safety deposit box held in the name of Mirumyan’s wife that contained $400,000 in cash. U.S. Private Vaults, a private safety deposit box company that advertised it was not subject to bank “know your customer” rules, pleaded guilty in 2022 to conspiring to launder money with its customers.
During 2020 and continuing through August of 2021, Mirumyan and others used other people’s identities to apply for UI benefits through the EDD, according to court documents. Once EDD approved the false and fraudulent UI applications, banks issued debit cards containing the funds intended for the false identities, Mirumyan and others used the fraudulently obtained debit cards to withdraw cash.
“When confronted with the COVID pandemic that has claimed the lives of almost 7 million persons worldwide to date, [Mirumyan] instead saw an opportunity to bilk taxpayers out of the emergency funds their government generously made available to ameliorate job losses,” according to a sentencing memorandum filed in this case. “Such criminal opportunism during a global health and economic emergency is egregious.”
Judge Anderson described Mirumyan’s offense as “galling” and “callous,” noting that the defendant took advantage of benefits meant to help the unemployed even while he had the talent and opportunities to earn money legitimately.
“[I]t appears that [Mirumyan] made a decision to pursue riches through fraud rather than to participate in the legitimate economy,” prosecutors wrote in the sentencing memo. “Worse, his choice paid off, at least until his stash of $400,000 in cash was accidentally discovered at U.S. Private Vaults based on an unrelated investigation of that business. [Mirumyan] was able to support himself and his family, purchasing a million-dollar home with a swimming pool with his criminal income.”
This matter was investigated by the Postal Inspection Service and the California Employment Development Department.
Assistant United States Attorney Andrew Brown of the Major Frauds Section prosecuted this case.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Leader of $20M COVID-19 relief fraud ring sent to prisonRead the Press Release
HOUSTON –The head of a multimillion-dollar COVID-19 relief fraud ring and six of his co-conspirators have been sentenced for fraudulently obtaining more than $20 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Amir Aqeel, 54, Houston, was sentenced Oct. 2 to 15 years in prison for leading the conspiracy and at least 14 other individuals to submit more than 75 fraudulent PPP loan applications in 2020. In the applications, they falsified the number of employees and the average monthly payroll expenses of the applicant businesses and submitted fraudulent bank records and/or fake federal tax forms in support of the PPP loan applications. Some were paid large kickbacks in exchange for their assistance with the false and fraudulent PPP loan applications.
“Amir Aqeel engaged in one of the largest PPP conspiracies in the country,” said U.S. Attorney Alamdar S. Hamdani. “He and his cohorts stole millions from the public fund, using that money to buy houses, a Porsche, even a Lamborghini, all while taking advantage of programs intended to help those struggling during the pandemic. These sentences send a strong message to scammers looking for a quick and easy buck in the Southern District of Texas; you need to look elsewhere.”
“During a time of unprecedented national peril, these defendants took advantage of a pandemic and stole millions of dollars in federal funds intended to help businesses keep their employees paid and their doors open,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The sentences demonstrate that the Department and law enforcement have and will continue to hold individuals accountable for committing fraud on the government.”
“I salute the prosecutors and agents who exposed this fraud ring, brought these defendants to justice, and worked to return stolen funds to the American people,” said Justice Department Director of COVID-19 Fraud Enforcement Michael Galdo. “The Department will continue to work with our law enforcement partners to bring those who committed pandemic benefit fraud to justice and use all appropriate tools to recover stolen pandemic relief funds.”
The conspirators also laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. These fake paychecks were cashed at Fascare International Inc. dba Almeda Discount Store (Almeda), a company Azeemuddin owned. In total, more than 1,100 fake paychecks for more than $3 million in fraudulent PPP loan proceeds were cashed at Almeda.
“SBA-OIG will aggressively root out bad actors in SBA’s pandemic response programs and bring them to justice,” said Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA-OIG) Central Region. “These sentences demonstrate there are significant consequences for conspiring to fraudulently access SBA programs and steal from taxpayers. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
“One unfortunate aspect of the pandemic relief programs has been how many people and institutions, including the Federal Home Loan Banks, were negatively affected by unscrupulous criminals who targeted a program meant to help all Americans at a critical time,” said Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General’s (FHFA-OIG) Central Region. “We are proud to work with our partner agencies to investigate and stamp out these schemes.”
“While the rest of our country was reeling from the effects of an unprecedented global health crisis, these individuals conspired to fraudulently obtain and launder millions of taxpayer dollars from an emergency fund that was intended to help keep struggling businesses and employees afloat,” said Special Agent in Charge Mark Dawson, Homeland Security Investigations (HSI) Houston. “Working in conjunction with our federal law enforcement partners, we were able to uncover their scheme and hold them accountable for exploiting these government programs for their own profit.”
Federal agents also executed 45 seizure warrants in conjunction with the case and have seized, among other items, a residence, a Porsche and a Lamborghini purchased with illegally obtained funds.
“Today, Aqeel and six of his co-conspirators in this case were brought to justice for their roles in a fraudulent scheme that swindled millions of dollars from the Paycheck Protection Program, which was created to assist struggling businesses during the COVID-19 pandemic,” said Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Dallas Region. “The FDIC-OIG, working with our law enforcement partners, will continue to pursue and hold accountable those who took advantage of these programs and threatened to undermine the integrity of our nation’s banking system.”
“The Treasury Inspector General for Tax Administration continues to aggressively pursue those who endeavor to defraud programs afforded to the American people under the CARES Act,” said Special Agent in Charge Gary Smith of the Treasury Inspector General for Tax Administration (TIGTA) Gulf States Field Division. “We appreciate the efforts of the Justice Department and our law enforcement partners in this effort.”
Five others had previously pleaded guilty and were sentenced today for their roles in the loan fraud scheme. Khalid Abbas, 57, Richmond, and Richard Reuth, 60, Spring, both received two and a half years in prison, while Rifat Bajwa, 54, Richmond, Siddiq Azeemuddin, 44, Naperville, Illinois, and Pardeep Basra, 54, Houston, were sentenced to three years, two years and three years and five months in prison, respectively.
A federal jury convicted Abdul Fatani, 57, Richmond, of one count of conspiracy to commit wire fraud, one count of wire fraud and one count of money laundering in February. He was sentenced to three years in prison.
The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG and TIGTA are investigating the cases.
Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson are prosecuting the cases along with Trial Attorneys Louis Manzo, Della Sentilles, Kate McCarthy and Spencer Ryan of the Criminal Division’s Fraud Section.
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 www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Leader of $20M COVID-19 Relief Fraud Ring Sentenced to 15 YearsRead the Press Release
The head of a multimillion-dollar COVID-19 relief fraud ring and six of his co-conspirators were sentenced for fraudulently obtaining more than $20 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Amir Aqeel, 54, of Houston, was sentenced yesterday to 15 years in prison and ordered to forfeit $5,583,111.48 for leading the conspiracy, and for conspiring with at least 14 other individuals to submit 75 fraudulent PPP loan applications in 2020. In the applications, the defendants falsified the number of employees and the average monthly payroll expenses of the applicant businesses and submitted fraudulent bank records and fake federal tax forms in support of the PPP loan applications. Aqeel paid some of the defendants large kickbacks in exchange for their assistance with the false and fraudulent PPP loan applications.
“During a time of unprecedented national peril, these defendants took advantage of a pandemic and stole millions of dollars in federal funds intended to help businesses keep their employees paid and their doors open,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The sentences demonstrate that the Department and law enforcement have and will continue to hold individuals accountable for committing fraud on the government.”
“I salute the prosecutors and agents who exposed this fraud ring, brought these defendants to justice, and worked to return stolen funds to the American people,” said Director of COVID-19 Fraud Enforcement Michael Galdo of the Justice Department. “The Department will continue to work with our law enforcement partners to bring those who committed pandemic benefit fraud to justice and use all appropriate tools to recover stolen pandemic relief funds.”
“Amir Aqeel engaged in one of the largest PPP conspiracies in the country,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “He and his cohorts stole millions from the public fund, using that money to buy houses, a Porsche, even a Lamborghini, all while taking advantage of programs intended to help those struggling during the pandemic. These sentences send a strong message to scammers looking for a quick and easy buck in the Southern District of Texas; you need to look elsewhere.”
The defendants also laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. The defendants cashed these fake paychecks at Fascare International Inc., dba Almeda Discount Store (Almeda), a company that Siddiq Azeemuddin owned. In total, the defendants cashed more than 1,100 fake paychecks for more than $3 million in fraudulent PPP loan proceeds at Almeda.
“SBA-OIG will aggressively root out bad actors in SBA’s pandemic response programs and bring them to justice,” said Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA-OIG) Central Region. “These sentences demonstrate there are significant consequences for conspiring to fraudulently access SBA programs and steal from taxpayers. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
“One unfortunate aspect of the pandemic relief programs has been how many people and institutions, including the Federal Home Loan Banks, were negatively affected by unscrupulous criminals who targeted a program meant to help all Americans at a critical time,” said Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General’s (FHFA-OIG) Central Region. “We are proud to work with our partner agencies to investigate and stamp out these schemes.”
“While the rest of our country was reeling from the effects of an unprecedented global health crisis, these individuals conspired to fraudulently obtain and launder millions of taxpayer dollars from an emergency fund that was intended to help keep struggling businesses and employees afloat,” said Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) Houston. “Working in conjunction with our federal law enforcement partners, we were able to uncover their scheme and hold them accountable for exploiting these government programs for their own profit.”
Federal agents also executed 45 seizure warrants in conjunction with the case and have seized, among other items, a residence, a Porsche, and a Lamborghini purchased with illegally obtained funds.
“Today, Aqeel and six of his co-conspirators in this case were brought to justice for their roles in a fraudulent scheme that swindled millions of dollars from the Paycheck Protection Program, which was created to assist struggling businesses during the COVID-19 pandemic,” said Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Dallas Region. “The FDIC-OIG, working with our law enforcement partners, will continue to pursue and hold accountable those who took advantage of these programs and threatened to undermine the integrity of our nation’s banking system.”
“The Treasury Inspector General for Tax Administration continues to aggressively pursue those who endeavor to defraud programs afforded to the American people under the CARES Act,” said Special Agent in Charge Gary Smith of the Treasury Inspector General for Tax Administration (TIGTA) Gulf States Field Division. “We appreciate the efforts of the Justice Department and our law enforcement partners in this effort.”
Five others had previously pleaded guilty and were sentenced today for their roles in the loan fraud scheme. Khalid Abbas, 57, and Rifat Bajwa, 54, both of Richmond, Texas, were sentenced to two and a half years and three years in prison, respectively. Azeemuddin, 44, of Naperville, Illinois, was sentenced to two years in prison. Pardeep Basra, 54, of Houston, was sentenced to three years and five months in prison. Richard Reuth, 60, of Spring, Texas, was sentenced to two and a half years in prison.
In February, a federal jury convicted Abdul Fatani, 57, of Richmond, Texas, of one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of money laundering. He was sentenced today to three years in prison.
The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG, and TIGTA are investigating the cases.
Trial Attorneys Louis Manzo, Della Sentilles, Kate McCarthy, and Spencer Ryan of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson for the Southern District of Texas are prosecuting the cases.
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 www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Lakewood Man Sentenced to Prison for Ponzi SchemeRead the Press Release
CLEVELAND – Paul Kimmins Lebo, 41, of Lakewood, Ohio, was sentenced today to 48 months of imprisonment by U.S. District Judge Charles E. Fleming after he earlier pleaded guilty to wire fraud in connection to a Ponzi scheme. Judge Fleming also sentenced Lebo to pay $635,000 in restitution and serve 3 years of supervised release.
According to court documents, from August 2017 through October 2021, Paul Lebo persuaded nearly 100 individuals to invest in his non-operational hedge fund, promising them future equity ownership and options trading strategies with assurances that their investments were protected and any deposits would be fully refundable. He also convinced them to provide short-term loans by giving false explanations about why he needed the loans and false assurances about his ability to repay. Instead, Lebo used the money for personal expenses, bad stock market trades, unsuccessful attempts to acquire real estate, and to repay earlier investors. Throughout the scheme, Lebo provided the victims bogus updates about the status of their investments to get victims to invest more. At times he would use new investor funds or his parents’ money to repay the victims or write “refund” checks from accounts that contained insufficient funds.
In addition to his fraudulent hedge fund scheme, Lebo also defrauded multiple people over the internet by offering items for sale without intending to deliver them. Instead, he used the payments from the “sales” to repay his hedge fund investors or make stock trades that ultimately resulted in the total loss of the funds.
The investigation was conducted by the FBI. The case was prosecuted by Assistant United States Attorney Erica Barnhill.
Kanawha County Woman Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
CHARLESTON, W.Va. – Brittany King, 34, of East Bank, pleaded guilty today to wire fraud and aggravated identity theft. King admitted that she fraudulently obtained $176,118.73 through her employment with a business that cleaned local office space.
According to court documents and statements made in court, from approximately December 2020 through at least December 1, 2022, King unlawfully obtained the personal identification information of multiple individuals through the access provided by the cleaning service that employed her. King and a co-defendant then used that personal information to reroute victims’ mail to King’s address in Charleston. Once mail was rerouted, King and the co-defendant would open lines of credit and bank accounts and obtain loans and credit cards.
King admitted to using the unlawfully obtained personal identification information of one victim to submit a fraudulent online Change of Address form to the United States Postal Service as part of her scheme on June 6, 2022. King further admitted that she fraudulently used another victim’s personal identification information to purchase a 2020 Chevrolet Malibu from a Charleston business on September 30, 2022. King and the co-defendant caused a loss of at least $176,118.73 to more than ten victims as a result of their fraudulent schemes.
King is scheduled to be sentenced on February 6, 2024, and faces a maximum penalty of 22 years in prison, three years of supervised release, and a $500,000 fine. King also owes $176,118.73 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Inspection Service, the United States Secret Service, the United States Department of Homeland Security-Homeland Security Investigations (HSI), the U.S. Department of Veterans Affairs Office of Inspector General, and the Kanawha County Sheriff’s Office.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorneys Andrew D. Isabell and Jonathan T. Storage are prosecuting the case, and Assistant United States Attorney Kathleen Robeson provided substantial assistance.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-14.
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Kanawha County Straw Purchaser Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Sean Anthony Iacono, 30, of Dunbar, pleaded guilty today to making false statements in acquisition of firearms.
According to court documents and statements made in court, on May 8, 2021, Iacono purchased a Glock model 23 GEN5 .40-caliber pistol at a Cross Lanes business. Iacono admitted that he falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 that he was the buyer of the firearm when he knew he was purchasing it for someone who was prohibited from possessing firearms.
Iacono further admitted to falsely certifying on the ATF Form 4473 that he was the buyer of a Taurus model GX4 9mm pistol when he purchased it at a South Charleston business for someone who was prohibited from possessing firearms.
Iacono is scheduled to be sentenced on January 3, 2024, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Troy D. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-66.
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Kanawha County Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Andre Leavell Pardue Jr., 35, of Nitro, was sentenced today to three years and five months in prison, to be followed by three years of supervised release, for possession with intent to distribute fentanyl.
According to court documents and statements made in court, on June 16, 2020, law enforcement officers executed a search warrant at Pardue’s residence. Officers found a bag of fentanyl and cash in a pair of pants in Pardue’s bedroom, a Smith & Wesson model M&P 9 9mm pistol under Pardue’s bed. Officer also found a safe that contained cash, a second bag of fentanyl and a Smith & Wesson model M&P 40 Shield .40-caliber pistol.
Pardue admitted to possessing the fentanyl found in his pants. Pardue further admitted that he intended both to sell and use the fentanyl found in the safe. Pardue also admitted that the cash found in his pants and the safe totaled $3,020 and was proceeds from his fentanyl sales, with a portion of the money intended for his drug supplier.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT) and the invaluable assistance provided by the West Virginia State Police.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorneys Nowles Heinrich and Andrew D. Isabell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-124.
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Kanawha County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Trellae Nellum-Toney, 29, of St. Albans, was sentenced today to four years and six months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on September 22, 2022, law enforcement officers conducted a traffic stop of a vehicle driven by Nellum-Toney in St. Albans. Nellum-Toney admitted that he got out of his vehicle and threw a Raven Arms model P-25 .25-caliber semi-automatic pistol and a baggie of suspected heroin to the ground. Officers recovered the firearm and controlled substance.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Nellum-Toney knew he was prohibited from possessing a firearm because of his prior felony conviction for first-degree robbery in Kanawha County Circuit Court on August 26, 2014.
Nellum-Toney also admitted that he possessed two firearms in a vehicle he was driving on January 24, 2023. Officers conducted a traffic stop of the vehicle in the Scott Depot area in Putnam County and found a Taurus model 709 Slim 9mm semi-automatic pistol under the driver’s seat and a Savage model Stevens 320 20-gauge shotgun in the vehicle’s trunk. Nellum-Toney admitted that he now knows the 9mm pistol was reported stolen from a St. Albans residence on September 26, 2021.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kanawha County Sheriff’s Office, and the Putnam County Sheriff’s Office.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Troy D. Adams prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-34.
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Justice Department to Monitor Compliance with Federal Voting Rights Laws in Alaska JurisdictionsRead the Press Release
The Justice Department announced today that it will monitor the election on Oct. 3 in certain jurisdictions in the state of Alaska to ensure compliance with the minority language accessibility requirements of the Voting Rights Act of 1965. On election day, the Civil Rights Division will be monitoring in the following jurisdictions: Dillingham Census Area, Kusilvak Census Area and North Slope Borough, Alaska.
The division regularly deploys its staff to monitor for compliance with the federal civil rights laws in elections in communities all across the country. In addition, the division also deploys monitors from the Office of Personnel Management, where authorized by federal court order.
Individuals can file complaints related to possible violations of the federal voting rights laws by a complaint form on the department’s website civilrights.justice.gov/ or by telephone toll-free at 800-253-3931. In addition, individuals may also report complaints by email to [email protected].
Visit www.justice.gov/crt/voting-section for more information about the Voting Rights Act and other federal voting rights laws.
Justice Department Announces Eight Indictments Against China-Based Chemical Manufacturing Companies and EmployeesRead the Press Release
The Justice Department today announced the unsealing of eight indictments in the Middle and Southern Districts of Florida charging China-based companies and their employees with crimes relating to fentanyl and methamphetamine production, distribution of synthetic opioids, and sales resulting from precursor chemicals.
The indictments build on prosecutions announced in June and mark the second set of prosecutions to charge China-based chemical manufacturing companies and nationals of the People’s Republic of China (PRC) for trafficking fentanyl precursor chemicals into the United States.
The indictments complement actions taken today by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) to designate 28 individuals and entities involved with the international proliferation of illicit drugs.
“We know that the global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China,” said Attorney General Merrick B. Garland. “The United States government is focused on breaking apart every link in that chain, getting fentanyl out of our communities, and bringing those who put it there to justice.”
“The international dimension to the deadly scourge of fentanyl requires the all-of-government response that we are delivering today,” said Secretary of Homeland Security Alejandro Mayorkas. “Through the dedication and investigative abilities of agents and officers from HSI, CBP, and our federal partners, we are bringing accountability to ruthless organizations and individuals resident in the People’s Republic of China and to the cartel members that seek to profit from the death and destruction that fentanyl causes.”
“The charges announced today are another down payment on the Justice Department’s pledge to every American family that has lost a loved one to fentanyl poisoning,” said Deputy Attorney General Lisa O. Monaco. “Just as we did in the fight against terrorists and cybercriminals, we are deploying a whole-of-government approach – sharing intelligence, combining resources, and relentlessly pursuing justice – to attack the global supply chain fueling the fentanyl crisis. We will not rest until we have rid our communities of this poison.”
“Fentanyl is the deadliest drug threat our nation has ever faced. These eight cases are the result of DEA’s efforts to attack the fentanyl supply chain where it starts — in China. Chinese chemical companies are fueling the fentanyl crisis in the United States by sending fentanyl precursors, fentanyl analogues, xylazine, and nitazenes into our country and into Mexico. These chemicals are used to make fentanyl and make it especially deadly,” said Drug Enforcement Administration (DEA) Administrator Anne Milgram. “DEA will not stop until we defeat this threat. We are grateful to our law enforcement partners whose collaboration and dedication have made these actions possible. I am also deeply grateful for the incredible work by the DEA Miami Field Division. Their pursuit of these organizations demonstrates the drive and determination of the men and women, who are working as one DEA, to defeat the cartels and their entire global supply chain.”
“This investigation of a narcotics trafficker utilizing counterfeit postage labels highlights the unique jurisdiction of the Postal Inspection Service,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service (USPIS). “This indictment is a win in our battle against counterfeit postage and those seeking to use the nation’s mail system to distribute dangerous substances.”
The DEA led the investigations brought in both districts and used its unique authority to specially schedule protonitazene and metonitazene as Schedule I controlled substances, which was necessary as their adverse health effects, including death, pose an imminent threat to public safety. As a result of that order, the regulatory controls and administrative, civil, and criminal sanctions applicable to Schedule I controlled substances can be imposed on persons who handle or propose to handle these substances. In addition, Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) seized more than 1,000 kilograms of fentanyl-related precursor chemicals, and the USPIS also traced packages containing the precursor chemicals mailed through the U.S. mail and analyzed their contents after seizure.
Fentanyl is the deadliest drug threat facing the United States. Not only is fentanyl 50 times more potent than heroin and 100 times more potent than morphine, a dose of as little as two milligrams can kill a grown adult. Fentanyl analogues are similar in chemical structure and effects as fentanyl. Fentanyl is the leading cause of death for Americans ages 18 to 49. From February 2022 to January, at least 105,263 Americans died of drug overdoses, the majority of which involved synthetic opioids such as fentanyl and fentanyl analogues.
Protonitazene and metonitazene are synthetic opioids that were emergency listed as Schedule I controlled substances in April 2022. There are no approved medical uses for protonitazene and metonitazene in the United States, or anywhere else in the world. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Methamphetamine overdose deaths are also surging in the United States. Methamphetamine is becoming more deadly because it is more frequently being mixed with highly potent fentanyl. There are currently no FDA-approved medications for treating methamphetamine use disorder or reversing overdoses. Drug overdose deaths involving psychostimulants, primarily methamphetamine, rose from 547 deaths in 1999 to 32,537 deaths in 2021.
The manufacture of fentanyl and methamphetamine begins with raw chemicals, known as precursors. Fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids are manufactured and distributed by China-based chemical companies, many of which openly advertise on the internet. These China-based manufacturers ship fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids around the world, including to the United States and Mexico, where drug cartels and traffickers combine the chemicals and then distribute fentanyl and methamphetamines throughout the United States to individual users.
These China-based chemical companies often attempt to evade law enforcement by using re-shippers in the United States, false return labels, false invoices, fraudulent postage, and packaging that conceals the true contents of the parcels and the identity of the distributors. In addition, these companies tend to use cryptocurrency transactions to conceal their identities and the location and movement of their funds.
The primary distributors of fentanyl and fentanyl analogues in North America are the Sinaloa Cartel based in Sinaloa, Mexico, and the Cartel Jalisco Nueva Generación based in Jalisco, Mexico. These two transnational criminal organizations have significant presences throughout Mexico, maintain distribution hubs in various cities across the United States, and control smuggling corridors into the United States.
Organizations such as the Sinaloa Cartel and Cartel Jalisco Nueva Generación receive fentanyl precursors from China that are then synthesized within clandestine laboratories into finished fentanyl at scale. China-based precursor chemical manufacturers ship precursors from mainland China by, among other methods, mislabeling the products being shipped and using containers and other packaging to mask their illicit contents.
Middle District of Florida
Five indictments were unsealed in the Middle District of Florida charging five Chinese corporations and eight Chinese nationals with the illegal importation of fentanyl and fentanyl-related chemicals into the United States.
According to the indictments, the defendants openly advertised their ability to thwart U.S. customs and deliver the chemicals used to make fentanyl to the Middle District of Florida and elsewhere in the United States. The defendants used fake shipping labels and special delivery procedures to ensure the illicit chemicals went undetected. The defendants played various roles, such as coordinators and suppliers, and eight defendants are also charged with international money laundering. According to the indictments, the Chinese companies demonstrated past success delivering a stable supply of product to clients in Mexico for years.
“The protection of our country from the deadly scourge of fentanyl is a key priority of the Department of Justice and my office,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to pursue cases against Chinese chemical companies who are knowingly manufacturing and exporting fentanyl precursors to profit on the pain and suffering of people in the United States. We thank our partners at the Drug Enforcement Administration for their tireless efforts in support of these prosecutions.”
Hebei Shenghao Import and Export Company, based in Shijiazhuang, Hebei Province, China, is charged with fentanyl trafficking conspiracy, along with Chinese nationals Qingshun Li, 29, who allegedly negotiates the sale of precursor chemicals and maintains a bank account for the receipt of payments; Qingsong Li, 32; and Chunhui Chen, 33, both of whom allegedly maintain cryptocurrency wallets for the remittance of payments of precursor chemicals; Chunzhou Chen, 30, who allegedly received Western Union payments on behalf of Hebei Shenghao.
Lihe Pharmaceutical Technology Company, based in Wuhan, Hebei Province, China, was charged with fentanyl trafficking conspiracy and international money laundering, along with Chinese nationals Mingming Wang, 34, who is the alleged holder for three bitcoin accounts shared by sales agents for Lihe Pharmaceutical, and Xinqiang Lu, 40, the alleged recipient of funds via Western Union on the company’s behalf.
Henan Ruijiu Biotechnology Company, based in Zhengzhou, Henan Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Yongle Gao, 30, who is the alleged registered owner of the bitcoin wallet associated with Henan Ruijiu.
Xiamen Wonderful Biotechnology Company, based in Xiamen, Fujian Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Guo Liang, 34, the alleged registered owner of the bitcoin wallet associated with Xiamen Wonderful.
Anhui Ruihan Technology Company, based in Hefei, Anhui Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering.
DEA investigated these cases.
Assistant U.S. Attorney Daniel Baeza and Special Assistant U.S. Attorney Michael Leath for the Middle District of Florida are prosecuting the cases.
Southern District of Florida
Three indictments were unsealed in the Southern District of Florida charging three Chinese companies and four officers and employees with fentanyl trafficking, synthetic opioid trafficking, precursor chemical importation, defrauding the U.S. Postal Service, and making and using counterfeit postage.
“Targeting those who fuel the opioid epidemic, regardless of who they are and where they are operating from, is one of our district’s top priorities,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Today, we announced charges against the Chinese companies and employees that manufacture and introduce the raw chemicals at the start of the fentanyl and methamphetamine supply chain. This is only the beginning of our fight. The precursors and synthetic opioids that are being marketed, sold, and shipped to the United States and Mexico are being mixed and re-distributed into our local communities as powerful and potentially deadly cocktails of controlled substances. We commend our partner agencies for their skill and resourcefulness, as we work collectively to prosecute the sources of the poison and protect the public.”
Hanhong Medicine Technology Company, a pharmaceutical company located in Wuhan, Hubei Province, China, was charged in a four-count indictment, along with Chinese nationals Changgen Du, 30, and Xuebi Gan, 28. According to the indictment, Hanhong has exported large quantities of fentanyl precursors and non-opioid additives, like xylazine, to the United States and Mexico, including to a drug trafficker in Pennsylvania and to a drug trafficker in the Sinaloa cartel for the manufacture of fentanyl in Mexico for eventual distribution in the United States. Xylazine is often mixed with fentanyl to increase the effects of the drug for users. Xylazine is a non-opioid drug approved for veterinary use for purposes of sedation, anesthesia, muscle relaxation, and pain relief in horses, cattle, and other animals. It is not approved for human use. Many opioid users are unaware they are taking xylazine. Overdose deaths involving xylazine have steadily increased year over year. Drug users who inject xylazine, or drug mixtures containing xylazine, often develop necrotic tissue resulting in disfiguring wounds or amputation.
The Du Transnational Criminal Organization is listed on the United States Attorney General’s Consolidated Priority Organization Target (CPOT) list. The CPOT list identifies the most significant transnational criminal organizations presenting a priority threat to the United States, including those international drug and money laundering organizations affecting the illicit drug supply of the United States. The CPOT list identifies those criminal organizations by the name(s) of their leaders. Du, as the criminal organization’s leader, is the director of Hanhong and allegedly negotiates sales with customers. Gan is an alleged sales representative. Du and Gan each operated a crypocurrency wallet that accepted payment for Hanhong’s sales. The four-count indictment charges Hanhong, Du, and Gan with conspiracy to manufacture and distribute fentanyl; conspiracy to manufacture and distribute a fentanyl precursor with intent to unlawfully import it into the U.S.; manufacturing and distributing a fentanyl precursor with intent to unlawfully import it into the U.S.; and conspiracy to commit money laundering.
Jiangsu Bangdeya New Material Technology Company, a pharmaceutical company located in Jiangsu, China, was charged in an eight-count indictment, along with Jiantong Wang, 40, a Chinese national and alleged owner and operator of Bangdeya. The indictment alleges that Bangdeya advertises openly online as an export company for chemicals, including synthetic opioids protonitazene and metonitazene. The introduction of these synthetic opioids into the illicit drug market threatens to exacerbate the overdose problem in the United States. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Bengdeya has imported large quantities of these synthetic opioids into the U.S., including to a drug trafficker in the Southern District of Florida.
Bangdeya and Wang were charged with conspiracy to import protonitazene and metonitazene; conspiracy to distribute protonitazene and metonitazene; multiple counts of distribution of protonitazene; conspiracy to defraud the United States and make and use forged and counterfeited postage; and making and printing unauthorized postage meter stamps.
Hubei Guanlang Biotechnology Company, a chemical company located in Shijaizhuang, Hebei Province, China, was charged in a two-count indictment, along with Chinese national Wei Zhang, 28, who allegedly runs the day-to-day operations of the company and operates a cryptocurrency wallet that accepts payment for the company’s sales of fentanyl precursors and opioid additives.
According to the indictment, Guanlang openly advertises online and sells an array of chemicals, including methamphetamine precursors like methylamine HCL, to customers in the United States and Mexico. Methylamine HCL is an essential precursor chemical that Mexican cartels use to manufacture highly pure and potent methamphetamine. Currently, most of the methamphetamine supply in the United States is produced by drug trafficking cartels in Mexico.
Guanlang and Zhang are charged with conspiracy to manufacture and distribute a methamphetamine precursor and unlawfully import into the U.S. and conspiracy to unlawfully import a methamphetamine precursor into the U.S. with the intent to manufacture methamphetamine; and the manufacture and distribution of a methamphetamine precursor that was unlawfully imported into the United States.
The DEA Miami Field Division, HSI Miami, USPIS-Miami, IRS-CI Miami, and FBI Miami Field Office investigated these cases.
Assistant U.S. Attorney Monique Botero and Jon Juenger for the Southern District of Florida are prosecuting the cases. Assistant U.S. Attorney Michell Hyman for the Southern District of Florida is handling asset forfeiture.
The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) provided assistance with the indictments brought in both districts.
The indictments are a result of Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF.
Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
hebei_redacted_indictment_03oct2023_003_redacted.pdf mdfl_anhui_redacted_indictment_03oct2023.pdf mdfl_henan_redacted_indictment_03oct2023.pdf mdfl_lihe_redacted_indictment_03oct2023.pdf mdfl_xiamen_redacted_indictment_03oct2023.pdf sdfl_bangdeya_indictment_03oct2023.pdf sdfl_hanhong_indictment_03oct2023.pdf sdfl_hubei_guanlang_indictment_03oct2023.pdfJustice Department Announces Eight Indictments Against China-Based Chemical Manufacturing Companies and EmployeesRead the Press Release
WASHINGTON – The Justice Department today announced the unsealing of eight indictments in the Middle and Southern Districts of Florida charging China-based companies and their employees with crimes relating to fentanyl and methamphetamine production, distribution of synthetic opioids, and sales resulting from precursor chemicals.
The indictments build on prosecutions announced in June and mark the second set of prosecutions to charge China-based chemical manufacturing companies and nationals of the People’s Republic of China (PRC) for trafficking fentanyl precursor chemicals into the United States.
The indictments complement actions taken today by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) to designate 28 individuals and entities involved with the international proliferation of illicit drugs.
“We know that the global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China,” said Attorney General Merrick B. Garland. “The United States government is focused on breaking apart every link in that chain, getting fentanyl out of our communities, and bringing those who put it there to justice.”
“The international dimension to the deadly scourge of fentanyl requires the all-of-government response that we are delivering today,” said Secretary of Homeland Security Alejandro Mayorkas. “Through the dedication and investigative abilities of agents and officers from HSI, CBP, and our federal partners, we are bringing accountability to ruthless organizations and individuals resident in the People’s Republic of China and to the cartel members that seek to profit from the death and destruction that fentanyl causes.”
“The charges announced today are another down payment on the Justice Department’s pledge to every American family that has lost a loved one to fentanyl poisoning,” said Deputy Attorney General Lisa O. Monaco. “Just as we did in the fight against terrorists and cybercriminals, we are deploying a whole-of-government approach – sharing intelligence, combining resources, and relentlessly pursuing justice – to attack the global supply chain fueling the fentanyl crisis. We will not rest until we have rid our communities of this poison.”
“Fentanyl is the deadliest drug threat our nation has ever faced. These eight cases are the result of DEA’s efforts to attack the fentanyl supply chain where it starts — in China. Chinese chemical companies are fueling the fentanyl crisis in the United States by sending fentanyl precursors, fentanyl analogues, xylazine, and nitazenes into our country and into Mexico. These chemicals are used to make fentanyl and make it especially deadly,” said Drug Enforcement Administration (DEA) Administrator Anne Milgram. “DEA will not stop until we defeat this threat. We are grateful to our law enforcement partners whose collaboration and dedication have made these actions possible. I am also deeply grateful for the incredible work by the DEA Miami Field Division. Their pursuit of these organizations demonstrates the drive and determination of the men and women, who are working as one DEA, to defeat the cartels and their entire global supply chain.”
“This investigation of a narcotics trafficker utilizing counterfeit postage labels highlights the unique jurisdiction of the Postal Inspection Service,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service (USPIS). “This indictment is a win in our battle against counterfeit postage and those seeking to use the nation’s mail system to distribute dangerous substances.”
The DEA led the investigations brought in both districts and used its unique authority to specially schedule protonitazene and metonitazene as Schedule I controlled substances, which was necessary as their adverse health effects, including death, pose an imminent threat to public safety. As a result of that order, the regulatory controls and administrative, civil, and criminal sanctions applicable to Schedule I controlled substances can be imposed on persons who handle or propose to handle these substances. In addition, Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) seized more than 1,000 kilograms of fentanyl-related precursor chemicals, and the USPIS also traced packages containing the precursor chemicals mailed through the U.S. mail and analyzed their contents after seizure.
Fentanyl is the deadliest drug threat facing the United States. Not only is fentanyl 50 times more potent than heroin and 100 times more potent than morphine, a dose of as little as two milligrams can kill a grown adult. Fentanyl analogues are similar in chemical structure and effects as fentanyl. Fentanyl is the leading cause of death for Americans ages 18 to 49. From February 2022 to January, at least 105,263 Americans died of drug overdoses, the majority of which involved synthetic opioids such as fentanyl and fentanyl analogues.
Protonitazene and metonitazene are synthetic opioids that were emergency listed as Schedule I controlled substances in April 2022. There are no approved medical uses for protonitazene and metonitazene in the United States, or anywhere else in the world. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Methamphetamine overdose deaths are also surging in the United States. Methamphetamine is becoming more deadly because it is more frequently being mixed with highly potent fentanyl. There are currently no FDA-approved medications for treating methamphetamine use disorder or reversing overdoses. Drug overdose deaths involving psychostimulants, primarily methamphetamine, rose from 547 deaths in 1999 to 32,537 deaths in 2021.
The manufacture of fentanyl and methamphetamine begins with raw chemicals, known as precursors. Fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids are manufactured and distributed by China-based chemical companies, many of which openly advertise on the internet. These China-based manufacturers ship fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids around the world, including to the United States and Mexico, where drug cartels and traffickers combine the chemicals and then distribute fentanyl and methamphetamines throughout the United States to individual users.
These China-based chemical companies often attempt to evade law enforcement by using re-shippers in the United States, false return labels, false invoices, fraudulent postage, and packaging that conceals the true contents of the parcels and the identity of the distributors. In addition, these companies tend to use cryptocurrency transactions to conceal their identities and the location and movement of their funds.
The primary distributors of fentanyl and fentanyl analogues in North America are the Sinaloa Cartel based in Sinaloa, Mexico, and the Cartel Jalisco Nueva Generación based in Jalisco, Mexico. These two transnational criminal organizations have significant presences throughout Mexico, maintain distribution hubs in various cities across the United States, and control smuggling corridors into the United States.
Organizations such as the Sinaloa Cartel and Cartel Jalisco Nueva Generación receive fentanyl precursors from China that are then synthesized within clandestine laboratories into finished fentanyl at scale. China-based precursor chemical manufacturers ship precursors from mainland China by, among other methods, mislabeling the products being shipped and using containers and other packaging to mask their illicit contents.
Middle District of Florida
Five indictments were unsealed in the Middle District of Florida charging five Chinese corporations and eight Chinese nationals with the illegal importation of fentanyl and fentanyl-related chemicals into the United States.
According to the indictments, the defendants openly advertised their ability to thwart U.S. customs and deliver the chemicals used to make fentanyl to the Middle District of Florida and elsewhere in the United States. The defendants used fake shipping labels and special delivery procedures to ensure the illicit chemicals went undetected. The defendants played various roles, such as coordinators and suppliers, and eight defendants are also charged with international money laundering. According to the indictments, the Chinese companies demonstrated past success delivering a stable supply of product to clients in Mexico for years.
“The protection of our country from the deadly scourge of fentanyl is a key priority of the Department of Justice and my office,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to pursue cases against Chinese chemical companies who are knowingly manufacturing and exporting fentanyl precursors to profit on the pain and suffering of people in the United States. We thank our partners at the Drug Enforcement Administration for their tireless efforts in support of these prosecutions.”
Hebei Shenghao Import and Export Company, based in Shijiazhuang, Hebei Province, China, is charged with fentanyl trafficking conspiracy, along with Chinese nationals Qingshun Li, 29, who allegedly negotiates the sale of precursor chemicals and maintains a bank account for the receipt of payments; Qingsong Li, 32; and Chunhui Chen, 33, both of whom allegedly maintain cryptocurrency wallets for the remittance of payments of precursor chemicals; Chunzhou Chen, 30, who allegedly received Western Union payments on behalf of Hebei Shenghao.
Lihe Pharmaceutical Technology Company, based in Wuhan, Hebei Province, China, was charged with fentanyl trafficking conspiracy and international money laundering, along with Chinese nationals Mingming Wang, 34, who is the alleged holder for three bitcoin accounts shared by sales agents for Lihe Pharmaceutical, and Xinqiang Lu, 40, the alleged recipient of funds via Western Union on the company’s behalf.
Henan Ruijiu Biotechnology Company, based in Zhengzhou, Henan Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Yongle Gao, 30, who is the alleged registered owner of the bitcoin wallet associated with Henan Ruijiu.
Xiamen Wonderful Biotechnology Company, based in Xiamen, Fujian Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Guo Liang, 34, the alleged registered owner of the bitcoin wallet associated with Xiamen Wonderful.
Anhui Ruihan Technology Company, based in Hefei, Anhui Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering.
DEA investigated these cases.
Assistant U.S. Attorney Daniel Baeza and Special Assistant U.S. Attorney Michael Leath for the Middle District of Florida are prosecuting the cases.
Southern District of Florida
Three indictments were unsealed in the Southern District of Florida charging three Chinese companies and four officers and employees with fentanyl trafficking, synthetic opioid trafficking, precursor chemical importation, defrauding the U.S. Postal Service, and making and using counterfeit postage.
“Targeting those who fuel the opioid epidemic, regardless of who they are and where they are operating from, is one of our district’s top priorities,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Today, we announced charges against the Chinese companies and employees that manufacture and introduce the raw chemicals at the start of the fentanyl and methamphetamine supply chain. This is only the beginning of our fight. The precursors and synthetic opioids that are being marketed, sold, and shipped to the United States and Mexico are being mixed and re-distributed into our local communities as powerful and potentially deadly cocktails of controlled substances. We commend our partner agencies for their skill and resourcefulness, as we work collectively to prosecute the sources of the poison and protect the public.”
Hanhong Medicine Technology Company, a pharmaceutical company located in Wuhan, Hubei Province, China, was charged in a four-count indictment, along with Chinese nationals Changgen Du, 30, and Xuebi Gan, 28. According to the indictment, Hanhong has exported large quantities of fentanyl precursors and non-opioid additives, like xylazine, to the United States and Mexico, including to a drug trafficker in Pennsylvania and to a drug trafficker in the Sinaloa cartel for the manufacture of fentanyl in Mexico for eventual distribution in the United States. Xylazine is often mixed with fentanyl to increase the effects of the drug for users. Xylazine is a non-opioid drug approved for veterinary use for purposes of sedation, anesthesia, muscle relaxation, and pain relief in horses, cattle, and other animals. It is not approved for human use. Many opioid users are unaware they are taking xylazine. Overdose deaths involving xylazine have steadily increased year over year. Drug users who inject xylazine, or drug mixtures containing xylazine, often develop necrotic tissue resulting in disfiguring wounds or amputation.
The Du Transnational Criminal Organization is listed on the United States Attorney General’s Consolidated Priority Organization Target (CPOT) list. The CPOT list identifies the most significant transnational criminal organizations presenting a priority threat to the United States, including those international drug and money laundering organizations affecting the illicit drug supply of the United States. The CPOT list identifies those criminal organizations by the name(s) of their leaders. Du, as the criminal organization’s leader, is the director of Hanhong and allegedly negotiates sales with customers. Gan is an alleged sales representative. Du and Gan each operated a crypocurrency wallet that accepted payment for Hanhong’s sales. The four-count indictment charges Hanhong, Du, and Gan with conspiracy to manufacture and distribute fentanyl; conspiracy to manufacture and distribute a fentanyl precursor with intent to unlawfully import it into the U.S.; manufacturing and distributing a fentanyl precursor with intent to unlawfully import it into the U.S.; and conspiracy to commit money laundering.
Jiangsu Bangdeya New Material Technology Company, a pharmaceutical company located in Jiangsu, China, was charged in an eight-count indictment, along with Jiantong Wang, 40, a Chinese national and alleged owner and operator of Bangdeya. The indictment alleges that Bangdeya advertises openly online as an export company for chemicals, including synthetic opioids protonitazene and metonitazene. The introduction of these synthetic opioids into the illicit drug market threatens to exacerbate the overdose problem in the United States. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Bengdeya has imported large quantities of these synthetic opioids into the U.S., including to a drug trafficker in the Southern District of Florida.
Bangdeya and Wang were charged with conspiracy to import protonitazene and metonitazene; conspiracy to distribute protonitazene and metonitazene; multiple counts of distribution of protonitazene; conspiracy to defraud the United States and make and use forged and counterfeited postage; and making and printing unauthorized postage meter stamps.
Hubei Guanlang Biotechnology Company, a chemical company located in Shijaizhuang, Hebei Province, China, was charged in a two-count indictment, along with Chinese national Wei Zhang, 28, who allegedly runs the day-to-day operations of the company and operates a cryptocurrency wallet that accepts payment for the company’s sales of fentanyl precursors and opioid additives.
According to the indictment, Guanlang openly advertises online and sells an array of chemicals, including methamphetamine precursors like methylamine HCL, to customers in the United States and Mexico. Methylamine HCL is an essential precursor chemical that Mexican cartels use to manufacture highly pure and potent methamphetamine. Currently, most of the methamphetamine supply in the United States is produced by drug trafficking cartels in Mexico.
Guanlang and Zhang are charged with conspiracy to manufacture and distribute a methamphetamine precursor and unlawfully import into the U.S. and conspiracy to unlawfully import a methamphetamine precursor into the U.S. with the intent to manufacture methamphetamine; and the manufacture and distribution of a methamphetamine precursor that was unlawfully imported into the United States.
The DEA Miami Field Division, HSI Miami, USPIS-Miami, IRS-CI Miami, and FBI Miami Field Office investigated these cases.
Assistant U.S. Attorney Monique Botero and Jon Juenger for the Southern District of Florida are prosecuting the cases. Assistant U.S. Attorney Michell Hyman for the Southern District of Florida is handling asset forfeiture.
The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) provided assistance with the indictments brought in both districts.
The indictments are a result of Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF.
Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
View the Anhui indictment here.
View the Hebei indictment here.
View the Henan indictment here.
View the Lihe indictment here.
View the Xiamen indictment here.
View the Bangdeya indictment here.
View the Hanhong indictment here.
View the Hubei Guanlang indictment here.
Justice Department Announces Eight Indictments Against China-Based Chemical Manufacturing Companies and EmployeesRead the Press Release
MIAMI – The Justice Department today announced the unsealing of eight indictments in the Middle and Southern Districts of Florida charging China-based companies and their employees with crimes relating to fentanyl and methamphetamine production, distribution of synthetic opioids, and sales resulting from precursor chemicals.
The indictments build on prosecutions announced in June 2023 and mark the second set of prosecutions to charge China-based chemical manufacturing companies and nationals of the People’s Republic of China (PRC) for trafficking fentanyl precursor chemicals into the United States.
The indictments complement actions taken today by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) to designate 28 individuals and entities involved with the international proliferation of illicit drugs.
“We know that the global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China,” said Attorney General Merrick B. Garland. “The United States government is focused on breaking apart every link in that chain, getting fentanyl out of our communities, and bringing those who put it there to justice.”
“The international dimension to the deadly scourge of fentanyl requires the all-of-government response that we are delivering today,” said Secretary of Homeland Security Alejandro Mayorkas. “Through the dedication and investigative abilities of Agents and Officers from HSI, CBP, and our federal partners, we are bringing accountability to ruthless organizations and individuals resident in the People’s Republic of China and to the cartel members that seek to profit from the death and destruction that fentanyl causes.”
“The charges announced today are another down payment on the Justice Department’s pledge to every American family that has lost a loved one to fentanyl poisoning,” said Deputy Attorney General Lisa O. Monaco. “Just as we did in the fight against terrorists and cybercriminals, we are deploying a whole-of-government approach – sharing intelligence, combining resources, and relentlessly pursuing justice – to attack the global supply chain fueling the fentanyl crisis. We will not rest until we have rid our communities of this poison.”
“Fentanyl is the deadliest drug threat our nation has ever faced. These eight cases are the result of DEA’s efforts to attack the fentanyl supply chain where it starts — in China. Chinese chemical companies are fueling the fentanyl crisis in the United States by sending fentanyl precursors, fentanyl analogues, xylazine, and nitazenes into our country and into Mexico. These chemicals are used to make fentanyl and make it especially deadly,” said DEA Administrator Anne Milgram. “DEA will not stop until we defeat this threat. We are grateful to our law enforcement partners whose collaboration and dedication have made these actions possible. I am also deeply grateful for the incredible work by the DEA Miami Field Division. Their pursuit of these organizations demonstrates the drive and determination of the men and women, who are working as One DEA, to defeat the cartels and their entire global supply chain.”
“This investigation of a narcotics trafficker utilizing counterfeit postage labels highlights the unique jurisdiction of the Postal Inspection Service,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service. “This indictment is a win in our battle against counterfeit postage and those seeking to use the nation’s mail system to distribute dangerous substances.”
The Drug Enforcement Administration (DEA) led the investigations brought in both districts and used its unique authority to specially schedule protonitazene and metonitazene as Schedule I controlled substances, which was necessary as their adverse health effects, including death, pose an imminent threat to public safety. As a result of that order, the regulatory controls and administrative, civil, and criminal sanctions applicable to Schedule I controlled substances can be imposed on persons who handle or propose to handle these substances. In addition, Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) seized more than 1,000 kilograms of fentanyl-related precursor chemicals, and the U.S. Postal Inspection Service also traced packages containing the precursor chemicals mailed through the U.S. mail and analyzed their contents after seizure.
Fentanyl is the deadliest drug threat facing the United States. Not only is fentanyl 50 times more potent than heroin and 100 times more potent than morphine, a dose of as little as two milligrams can kill a grown adult. Fentanyl analogues are similar in chemical structure and effects as fentanyl. Fentanyl is the leading cause of death for Americans ages 18 to 49. From February 2022 to January 2023, at least 105,263 Americans died of drug overdoses, the majority of which involved synthetic opioids such as fentanyl and fentanyl analogues.
Protonitazene and metonitazene are synthetic opioids that were emergency listed as Schedule I controlled substances in April 2022. There are no approved medical uses for protonitazene and metonitazene in the United States, or anywhere else in the world. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Methamphetamine overdose deaths are also surging in the United States. Methamphetamine is becoming more deadly because it is more frequently being mixed with highly potent fentanyl. There are currently no FDA-approved medications for treating methamphetamine use disorder or reversing overdoses. Drug overdose deaths involving psychostimulants, primarily methamphetamine, rose from 547 deaths in 1999 to 32,537 deaths in 2021.
The manufacture of fentanyl and methamphetamine begins with raw chemicals, known as precursors. Fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids are manufactured and distributed by China-based chemical companies, many of which openly advertise on the internet. These China-based manufacturers ship fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids around the world, including to the United States and Mexico, where drug cartels and traffickers combine the chemicals and then distribute fentanyl and methamphetamines throughout the United States to individual users.
These China-based chemical companies often attempt to evade law enforcement by using re-shippers in the United States, false return labels, false invoices, fraudulent postage, and packaging that conceals the true contents of the parcels and the identity of the distributors. In addition, these companies tend to use cryptocurrency transactions to conceal their identities and the location and movement of their funds.
The primary distributors of fentanyl and fentanyl analogues in North America are the Sinaloa Cartel based in Sinaloa, Mexico, and the Cartel Jalisco Nueva Generación based in Jalisco, Mexico. These two transnational criminal organizations have significant presences throughout Mexico, maintain distribution hubs in various cities across the United States, and control smuggling corridors into the United States.
Organizations such as the Sinaloa Cartel and Cartel Jalisco Nueva Generación receive fentanyl precursors from China that are then synthesized within clandestine laboratories into finished fentanyl at scale. China-based precursor chemical manufacturers ship precursors from mainland China by, among other methods, mislabeling the products being shipped and using containers and other packaging to mask their illicit contents.
Southern District of Florida
Three indictments were unsealed in the Southern District of Florida charging three Chinese companies and four officers and employees with fentanyl trafficking, synthetic opioid trafficking, precursor chemical importation, defrauding the U.S. Postal Service, and making and using counterfeit postage.
“Targeting those who fuel the opioid epidemic, regardless of who they are and where they are operating from, is one of our district’s top priorities,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Today, we announced charges against the Chinese companies and employees that manufacture and introduce the raw chemicals at the start of the fentanyl and methamphetamine supply chain. This is only the beginning of our fight. The precursors and synthetic opioids that are being marketed, sold, and shipped to the United States and Mexico are being mixed and re-distributed into our local communities as powerful and potentially deadly cocktails of controlled substances. We commend our partner agencies for their skill and resourcefulness, as we work collectively to prosecute the sources of the poison and protect the public.”
Hanhong Medicine Technology Company, a pharmaceutical company located in Wuhan, Hubei Province, China, was charged in a four-count indictment, along with Chinese nationals Changgen Du, 30, and Xuebi Gan, 28. According to the indictment, Hanhong has exported large quantities of fentanyl precursors and non-opioid additives, like xylazine, to the United States and Mexico, including to a drug trafficker in Pennsylvania and to a drug trafficker in the Sinaloa cartel for the manufacture of fentanyl in Mexico for eventual distribution in the United States. Xylazine is often mixed with fentanyl to increase the effects of the drug for users. Xylazine is a non-opioid drug approved for veterinary use for purposes of sedation, anesthesia, muscle relaxation, and pain relief in horses, cattle, and other animals. It is not approved for human use. Many opioid users are unaware they are taking xylazine. Overdose deaths involving xylazine have steadily increased year over year. Drug users who inject xylazine, or drug mixtures containing xylazine, often develop necrotic tissue resulting in disfiguring wounds or amputation.
The Du Transnational Criminal Organization is listed on the United States Attorney General’s Consolidated Priority Organization Target (CPOT) list. The CPOT list identifies the most significant transnational criminal organizations presenting a priority threat to the United States, including those international drug and money laundering organizations affecting the illicit drug supply of the United States. The CPOT list identifies those criminal organizations by the name(s) of their leaders. Du, as the criminal organization’s leader, is the director of Hanhong and allegedly negotiates sales with customers. Gan is an alleged sales representative. Du and Gan each operated a crypocurrency wallet that accepted payment for Hanhong’s sales. The four-count indictment charges Hanhong, Du, and Gan with conspiracy to manufacture and distribute fentanyl; conspiracy to manufacture and distribute a fentanyl precursor with intent to unlawfully import it into the U.S.; manufacturing and distributing a fentanyl precursor with intent to unlawfully import it into the U.S.; and conspiracy to commit money laundering.
Jiangsu Bangdeya New Material Technology Company, a pharmaceutical company located in Jiangsu, China, was charged in an eight-count indictment, along with Jiantong Wang, 40, a Chinese national and alleged owner and operator of Bangdeya. The indictment alleges that Bangdeya advertises openly online as an export company for chemicals, including synthetic opioids protonitazene and metonitazene. The introduction of these synthetic opioids into the illicit drug market threatens to exacerbate the overdose problem in the United States. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Bengdeya has imported large quantities of these synthetic opioids into the U.S., including to a drug trafficker in the Southern District of Florida.
Bangdeya and Wang were charged with conspiracy to import protonitazene and metonitazene; conspiracy to distribute protonitazene and metonitazene; multiple counts of distribution of protonitazene; conspiracy to defraud the United States and make and use forged and counterfeited postage; and making and printing unauthorized postage meter stamps.
Hubei Guanlang Biotechnology Company, a chemical company located in Shijaizhuang, Hebei Province, China, was charged in a two-count indictment, along with Chinese national Wei Zhang, 28, who allegedly runs the day-to-day operations of the company and operates a cryptocurrency wallet that accepts payment for the company’s sales of fentanyl precursors and opioid additives.
According to the indictment, Guanlang openly advertises online and sells an array of chemicals, including methamphetamine precursors like methylamine HCL, to customers in the United States and Mexico. Methylamine HCL is an essential precursor chemical that Mexican cartels use to manufacture highly pure and potent methamphetamine. Currently, most of the methamphetamine supply in the United States is produced by drug trafficking cartels in Mexico.
Guanlang and Zhang are charged with conspiracy to manufacture and distribute a methamphetamine precursor and unlawfully import into the U.S. and conspiracy to unlawfully import a methamphetamine precursor into the U.S. with the intent to manufacture methamphetamine; and the manufacture and distribution of a methamphetamine precursor that was unlawfully imported into the United States.
The DEA Miami Field Division, HSI Miami, USPIS-Miami, IRS-CI Miami, and FBI Miami Field Office investigated these cases.
Assistant U.S. Attorney Monique Botero and Jon Juenger for the Southern District of Florida are prosecuting the cases. Assistant U.S. Attorney Michell Hyman for the Southern District of Florida is handling asset forfeiture.
The indictments are a result of Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF.
Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community.
Middle District of Florida
Five indictments were unsealed in the Middle District of Florida charging five Chinese corporations and eight Chinese nationals with the illegal importation of fentanyl and fentanyl-related chemicals into the United States.
According to the indictments, the defendants openly advertised their ability to thwart U.S. customs and deliver the chemicals used to make fentanyl to the Middle District of Florida and elsewhere in the United States. The defendants used fake shipping labels and special delivery procedures to ensure the illicit chemicals went undetected. The defendants played various roles, such as coordinators and suppliers, and eight defendants are also charged with international money laundering. According to the indictments, the Chinese companies demonstrated past success delivering a stable supply of product to clients in Mexico for years.
“The protection of our country from the deadly scourge of fentanyl is a key priority of the Department of Justice and my office,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to pursue cases against Chinese chemical companies who are knowingly manufacturing and exporting fentanyl precursors to profit on the pain and suffering of people in the United States. We thank our partners at the Drug Enforcement Administration for their tireless efforts in support of these prosecutions.”
Hebei Shenghao Import and Export Company, based in Shijiazhuang, Hebei Province, China, is charged with fentanyl trafficking conspiracy, along with Chinese nationals Qingshun Li, 29, who allegedly negotiates the sale of precursor chemicals and maintains a bank account for the receipt of payments; Qingsong Li, 32; and Chunhui Chen, 33, both of whom allegedly maintain cryptocurrency wallets for the remittance of payments of precursor chemicals; Chunzhou Chen, 30, who allegedly received Western Union payments on behalf of Hebei Shenghao.
Lihe Pharmaceutical Technology Company, based in Wuhan, Hebei Province, China, was charged with fentanyl trafficking conspiracy and international money laundering, along with Chinese nationals Mingming Wang, 34, who is the alleged holder for three bitcoin accounts shared by sales agents for Lihe Pharmaceutical, and Xinqiang Lu, 40, the alleged recipient of funds via Western Union on the company’s behalf.
Henan Ruijiu Biotechnology Company, based in Zhengzhou, Henan Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Yongle Gao, 30, who is the alleged registered owner of the bitcoin wallet associated with Henan Ruijiu.
Xiamen Wonderful Biotechnology Company, based in Xiamen, Fujian Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Guo Liang, 34, the alleged registered owner of the bitcoin wallet associated with Xiamen Wonderful.
Anhui Ruihan Technology Company, based in Hefei, Anhui Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering.
DEA investigated these cases.
Assistant U.S. Attorney Daniel Baeza and Special Assistant U.S. Attorney Michael Leath for the Middle District of Florida are prosecuting the cases.
The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) provided assistance with the indictments brought in both districts.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indictments are attached to this release.
Indictment-23cr335 Indictment-23CR338 Indictment-23CR334 Indictment-23CR336 Indictment-23CR333 CaseNo-23-20393-CR-ALT CaseNo-23-20394-CR-ALT CaseNo-23-60176-CR-SING###
Jury Convicts Macon Residents for Armed Fentanyl, Meth, Heroin TraffickingRead the Press Release
MACON, Ga. – A federal jury convicted two Macon residents and members of a local criminal street gang organization on multiple federal charges Monday evening for their roles in the armed distribution of large quantities of drugs, which often tested to be deadly fentanyl mixes.
Johnifer Dernard Barnwell aka “Whoop” aka “Malixe,” 37, of Macon, and Kenneth Emanuel Pertillo aka “Fat Boy,” 37, of Macon, West Virginia and North Carolina, were found guilty of conspiracy to possess with intent to distribute fentanyl, methamphetamine and heroin, and possession with intent to distribute fentanyl, methamphetamine, heroin, cocaine and cocaine base. Barnwell was also convicted of possessing a firearm in furtherance of a drug trafficking crime. The trial began on Sept. 25 before U.S. District Judge Royal, concluding Oct. 2. Both defendants face a maximum sentence of life in prison on each narcotics charge and a $10,000,000 fine. Barnwell additionally faces five consecutive years in prison and a maximum $250,000 fine for the firearms charge. Sentencing will be determined by the Court. The defendants are not eligible for parole.
“As part of our collective commitment to directly address violence in Macon, law enforcement conducted this lengthy investigation to unravel a violent and armed organized criminal group distributing large amounts of fentanyl, often sold to people as other drugs,” said U.S. Attorney Peter D. Leary. “In collaboration with our local, state and federal law enforcement partners, our office is resolved to bring justice to those who terrorize our neighborhoods with unrelenting violence and poison our communities with fentanyl and other deadly drugs.”
“Gangs wreak havoc on local residents, engaging in violence and peddling dangerous drugs that devastate communities and families," said Senior Supervisory Special Agent Robert Gibbs of FBI Macon. "As this case demonstrates, cooperation between federal, state and local law enforcement is vital to dismantling violent criminal enterprises and keeping our communities safe."
According to court documents and evidence presented at trial, FBI began investigating a large-scale fentanyl, heroin and methamphetamine distribution organization in Macon and the Central Georgia region in March 2020. Federal agents identified Pertillo and Barnwell as distributors and part of the MOB (Money Over Bitches) sect of the Mafia criminal street gang. To advance the investigation, agents conducted multiple controlled purchases from various defendants in the case and obtained orders authorizing wiretaps on five phones used by members of the organization, including Barnwell. Controlled purchases occurred at trap houses on Mimosa Drive and Culver Street, and at a local nightclub, among other locations. Illegal drugs being sold as “heroin” often tested as a fentanyl mix.
On July 20, 2021, FBI executed search warrants at eleven Macon addresses identified as trap houses or distribution locations on Mimosa Drive, Culver Street, Forest Hill Road, Riverside Park Boulevard, Lucerne Drive, Shurling Drive and Kingsview Drive. Agents found approximately eight kilograms of fentanyl, methamphetamine, heroin, cocaine and cocaine base plus 20 firearms, hundreds of rounds of ammunition, large-capacity firearm magazines and more than $50,000 cash. At one location—an apartment identified as a drug “lab” at 3990 Riverside Park Blvd. where Barnwell and Pertillo would mix fentanyl and heroin in a kitchen blender before selling it—agents found approximately 2.5 kilograms of methamphetamine, nearly one kilogram of pure fentanyl, more than one kilogram of a pure fentanyl chemical analogue and more than two kilograms of blends containing fentanyl, heroin and fentanyl analogue mix. Agents also found nearly half a kilogram of pure heroin, more than 280 grams of cocaine base, 80 grams of cocaine and 64 grams of ketamine. Agents seized several firearms, a fully loaded AR14 drum magazine, ammunition and $5,778 cash at that location.
In all, the organization is responsible for distributing or possessing with the intent to distribute more than three kilograms of fentanyl or fentanyl analogue, 2.5 kilograms of methamphetamine, nearly two kilograms of heroin and significant quantities of cocaine base and cocaine.
The following co-defendants have been convicted and are awaiting sentencing:
Christopher Leon Coleman aka “Slim,” 41, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine. He faces a mandatory minimum sentence of ten years up to a maximum of life in prison and a $10,000,000 fine;
Troy Truelle Williams, Sr., aka “Ty, 54, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl and heroin. He faces a mandatory minimum sentence of five years up to a maximum of 40 years in prison to be followed by six years of supervised release and a $2,000,000 fine;
De’Kerio Ja’mel Coleman aka “Dee,” 35, of Macon, pleaded guilty to distribution of fentanyl. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine;
Joshua Antoine Green aka “J” or “Jay,” 32, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine;
Gregory Bernard Jolly aka “Stank,” 38, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine;
Johnnie B. Lowe, 67, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine;
Rochelle Oliver aka “Chelle,” 40, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances. She faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine;
Recardo Keon Ray aka “Keon,” 38, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine;
Tiara Thomas aka “Red,” 23, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl. She faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine; and
Michael Clifford White, 40, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine.
The following co-defendants have been convicted and sentenced:
Romello Campbell, 21, of Macon, was sentenced to serve 120 months in prison to be followed by three years of supervised release on May 9 after he pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine;
Diamond Monique Thomas, 27, of Macon, was sentenced to serve 96 months in prison to be followed by three years of supervised release on July 11 after she pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine; and
Jameliha Shalonda Coleman aka “Juicy,” 26, of Macon, was sentenced to serve 90 months in prison to be followed by three years of supervised release on June 9 after she pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the FBI, with assistance from numerous agencies who participated in executing search warrants and conducting arrests, including the DEA, the GBI, the Bibb County Sheriff’s Office, the Butts County Sheriff’s Office, the Bleckley County Sheriff’s Office, the Houston County Sheriff’s Office, the Georgia Department of Corrections, the Perry Police Department and the Athens-Clarke County Police Department.
Assistant U.S. Attorney Joy Odom is prosecuting the case for the Government.
Johnstown Man Pleads Guilty to Conspiring to Distribute and Possessing with Intent to Distribute Crack-Cocaine and CocaineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Johnstown, PA pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
Perry King, age 47, of Johnstown, PA, pleaded guilty to Count One of a Superseding Indictment and to Counts One and Two of an Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from on or about April 2019, to on or about July 2021, King did conspire to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as crack, and a quantity of a mixture and substance containing a detectable amount of cocaine. Further, on or about October 31, 2019, King did possess with intent to distribute and distribute a quantity of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as “crack”. Additionally, on or about January 14, 2020, King did possess with intent to distribute 28 grams or more of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as “crack:”.
Judge Gibson scheduled sentencing for February 8, 2024. The law provides for a minimum sentence of 5 years in prison and a maximum sentence of 40 years in prison, a fine of up to $5,000,000, or both, at Count One of the Indictment, and a maximum sentence of 20 years in prison, a fine of up to $1,000,000, or both at Count One of the Superseding Indictment and Count Two of the Indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of King. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Pennsylvania Office of the Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department and other local law enforcement agencies.
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.
Jefferson Parish Man Indicted for Making False Statement to United States Coast GuardRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that DERRICK FREMEN (“FREMEN”), age 51, a resident of Jefferson Parish, was indicted for making a false statement to the United States Coast Guard, in violation of Title 18, United States Code, Section 1001(a)(3). FREMEN was arrested on September 28, 2023.
According to court documents, FREMEN was a licensed merchant mariner and holder of a 100-Ton United States Coast Guard master’s license. In late 2018, FREMEN applied for a job to work on a vessel. The prospective employer required FREMEN to submit to a drug screening, which he failed. In response to the failed drug test, FREMEN submitted an altered medication prescription to the United States Coast Guard on July 1, 2019, to justify his failed drug test.
If convicted of this violation, FREMEN faces a prison term of up to five years, up to three years of supervised release, a fine of up to $250,000, and a mandatory special assessment fee of $100. The matter is currently set for trial on December 4, 2023, before U.S. District Judge Lance M. Africk.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by Special Agents of the United States Coast Guard Investigative Service, Gulf Region. Assistant United States Attorney Spiro G. Latsis of the General Crimes Unit oversees the prosecution.
Jacksonville Beach Nurse Pleads Guilty to Tampering with MedicationRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Katherine Jee Rankin (30, Jacksonville Beach) today pleaded guilty to tampering with a consumer product, specifically injectable hydromorphone. Rankin faces a maximum penalty of 10 years in federal prison. A sentencing date has not been set.
According to the plea agreement, Rankin was a registered nurse and employed by a surgical center in Jacksonville. On October 13, 2022, after discovering that Rankin had forged an anesthesia record, a supervisor confronted Rankin and told her that she was being fired. After being terminated, but while still in the building, Rankin was seen by another employee, and captured on a surveillance camera, removing some vials from a controlled substances cabinet. While still at the surgical center, Rankin had a discussion with three other employees telling them that she had an addiction and that she had been taking drugs from the facility. She also said that the center’s drug count was going to be off. Rankin eventually turned over four vials of injectable hydromorphone, stating that the vials did not contain hydromorphone, but saline. Rankin explained that she had removed the hydromorphone, replaced it with saline, glued the caps back on, and then put vials back in the inventory so that surgical center’s drug count would be correct. Laboratory testing later showed that all four vials contained evidence of physical tampering (caps being removed and glued back on) and chemical tampering (each vial contained very diluted amounts of hydromorphone).
A review of patient records showed numerous instances in which 200 ml of hydromorphone was documented as being administered to patients when that amount would have been unusual – 100 ml being more typical. On those occasions, the entries appeared to have been altered with a “2” being written over the “1.” There were also multiple records of hydromorphone supposedly being administered post-operatively (which also would be unusual), indicating that these records were falsified or altered to cover for Rankin’s diversion of drugs for personal use.
As a trained and educated healthcare professional, Rankin knew that tampering with medication and falsifying records placed patients in danger of bodily injury and potentially death.
This case was investigated by the U.S. Food and Drug Administration – Office of Criminal Investigations and the Jacksonville Sheriff’s Office – Pharmaceutical Diversion and Designer Drug Unit attached to the North Florida High Intensity Drug Trafficking Area. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Inmate at FCI-Berlin Sentenced to an Additional 30 Months for Assaulting Another InmateRead the Press Release
CONCORD – An inmate at FCI Berlin was sentenced in federal court in Concord for assaulting another inmate, U.S. Attorney Jane E. Young announces.
Aniel Gomez, 48, was sentenced by U.S. District Court Judge Steven McAuliffe to an additional 30 months in prison. Gomez was also ordered to pay $1,392 in restitution to the Federal Bureau of Prisons. On June 14, 2023, Gomez pleaded guilty to assault.
“The defendant’s attack not only caused significant harm to another inmate, but it risked the safety of the entire community including the prison’s staff,” said U.S. Attorney Jane E. Young. “The U.S. Department of Justice considers the custody and care of federal inmates to be a serious responsibility and we will continue to support our partners at the Federal Bureau of Prisons to accomplish this mission.”
“Today’s sentence makes it clear that prison is not a place to continue committing crimes,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Aniel Gomez brutally beat a fellow inmate and will now spend more time behind bars for jeopardizing that inmate’s safety and the safety of the prison’s staff. This case demonstrates how the FBI will not hesitate to work with our law enforcement partners to ensure that anyone who engages in violence will be brought to justice.”
On December 19, 2022, Gomez beat another inmate with a homemade weapon consisting of two padlocks strapped together. Prison video footage showed Gomez waiting for the victim. After the victim exited a shower, Gomez followed him and beat him with the homemade weapon. As a result, the victim suffered head trauma including the loss of teeth and lacerations above the right eyebrow and back of the head.
At the time of the assault, Gomez was serving a 365-month imprisonment for conspiracy to maintain a residence for manufacturing and distributing marijuana, and conspiracy to manufacture and distribute 100 or more marijuana plants. Gomez’s sentence will be consecutive to his current sentence.
The Federal Bureau of Investigation and FCI-Berlin Special Investigative Services led the investigation. Assistant U.S. Attorney Matthew T. Hunter prosecuted the case.
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Inkster Mayor Charged with BriberyRead the Press Release
DETROIT – A federal indictment was issued charging the mayor of the City of Inkster with bribery, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Patrick Wimberly, 49, of Inkster, is the elected mayor of the City of Inkster, Michigan. According to the indictment, Wimberly demanded cash payments to facilitate the sale of property owned by the city (referred to as “Parcel 1”) to an outside party (referred to as “Person A”). Over several months, Person A provided Wimberly with monthly cash bribes to secure the purchase of this property. The monthly payments started at $5,000 but the parties agreed to eventually increase that amount. After the initial bribes, Wimberly explained that he was ready to increase the payments. Person A agreed. But when Person A later didn’t provide the amount Wimberly expected, Wimberly complained that he was due “10$ a month.” Person A then increased the monthly payments to $10,000. In total, Person A provided $50,000 in cash to Wimberly to assure a winning bid of Parcel 1.
Wimberly was charged with bribery concerning programs receiving federal funds, a violation of 18 U.S.C. § 666. This bribery charge carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000.
“Elected public officials owe a duty to their community to act in the citizens’ best interest,” United States Attorney Ison said. “Our office is committed to prosecuting those public officials who betray the public trust by accepting bribes.”
"Mr. Wimberly was elected to serve the people of Inkster, yet he prioritized his personal interests and greed over their needs," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "The FBI considers public corruption its primary criminal investigative concern and will continue investigating allegations to maintain public trust in elected officials."
The investigation of this case was conducted by the FBI's Detroit Area Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorneys Steven P. Cares and Eaton P. Brown.
An indictment is only a charging document and is not evidence of guilt.
Four Men Arraigned on Alleged Drug Trafficking Conspiracy and Gun ChargesRead the Press Release
WASHINGTON – Arraignments were held today for four alleged members of a drug trafficking conspiracy. Jorge Cruz Maldonado, Francisco Alexander Rosales Diaz, Erik Rivera Garcia, and Vladimir Roque Ceron are charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and a mixture and substance containing a detectable amount of fentanyl.
The charges were announced by U.S. Attorney Matthew M. Graves and Special Agent in Charge Jarod Forget of the Drug Enforcement Administration’s Washington Field Division.
Cruz Maldonado also is charged with unlawful distribution of 500 grams or more of cocaine; Cruz Maldonado, Rosales Diaz, and Rivera Garcia are charged with unlawful possession with intent to distribute 500 grams or more of cocaine and using, carrying, and possessing a firearm in furtherance of a drug trafficking offense; Rivera Garcia also is charged with unlawful possession of a firearm and ammunition by a prohibited person. Rosales Diaz additionally is charged with unlawful possession of ammunition by a prohibited person.
According to court documents, on or about Aug. 18, 2023, Cruz Maldonado, Rivera Garcia, and Rosales Diaz arrived in a vehicle at the parking lot of a shopping center in Northeast Washington, DC to conduct a drug deal. Shortly after, DEA agents approached all three individuals in their car and detained them. Inside the vehicle, DEA agents discovered and seized a loaded .38 caliber revolver, a loaded 9mm handgun, numerous rounds of ammunition for each firearm, an extended magazine, and approximately 3.6 kilograms of cocaine powder.
It is further alleged that between March and June 2023, through five transactions in Hyattsville, Maryland, and Washington, D.C., Roque Ceron sold a total of approximately 111 pills containing fentanyl and 197 grams of cocaine powder for $8,250; and, through two transactions between June and August 2023 in Washington, DC, Cruz Maldonado sold a total of approximately 581 grams of cocaine powder for $16,000. It is further alleged that Cruz Maldonado is Roque Ceron’s supplier of fentanyl and cocaine, and that together with Rosales Diaz and Rivera Garcia, they are engaged in a conspiracy to distribute and possess with intent to distribute cocaine and fentanyl.
Cruz Maldonado, Rosales Diaz, and Rivera Garcia were arrested on Aug. 18, 2023, and remain detained; Roque Ceron was arrested on August 20, 2023, and remains detained.
The maximum statutory sentence for the drug conspiracy charge is 40 years; the maximum statutory sentence for distributing or possessing with intent to distribute 500 grams or more of cocaine is 40 years; the maximum statutory sentence for possessing a firearm in furtherance of a drug trafficking offense is life imprisonment; and the maximum statutory sentence for possessing a firearm and/or ammunition by a prohibited person is 15 years. All statutory maximum sentences are prescribed by Congress and are provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the DEA’s Washington Field Division with assistance from the Department of Homeland Security’s Immigration and Customs Enforcement (Washington Enforcement and Removal Operations) and the Metropolitan Police Department. The case is being prosecuted by Special Assistant U.S. Attorney Javier Urbina and Assistant U.S. Attorney Christopher Marin with the Violence Reduction and Trafficking Offenses section of the U.S. Attorney’s Office for the District of Columbia.
All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Key West hotel housekeeping manager sentenced for tax and immigration conspiracyRead the Press Release
MIAMI – A former housekeeping manager at a large Key West hotel, Nataliya Vasylivna Kasyanenko, was sentenced on Sept. 29, to eight months in prison for conspiring to defraud the United States and conspiring to harbor aliens and induce them to remain in the United States for her role in a tax and immigration conspiracy related to the operation of a labor staffing business, Phoenix ADB Services, Inc. (“Phoenix ADB”).
From at least 2009 to October 2020, a large hotel in Key West used staffing services provided by several companies, including General Labor Solutions LLC, Liberty Specialty Services LLC, Paradise Choice LLC and Paradise Choice Cleaning LLC (collectively, “Paradise Choice”), AmeriHos LLC (“American Hospitality”), Golden Sands Management LLC (“Golden Sands”). and Phoenix ADB (collectively, “hospitality labor staffing companies”). As a manager, Kasyanenko used these companies to hire aliens for positions at her hotel whom she knew were not authorized to work in the United States and received kickbacks from the hospitality labor staffing companies for directing unauthorized workers to be placed on their respective payrolls. Kasyanenko knew that the operators of Phoenix ADB—who included her sons, Former City of Key West Police Officer Igor Kasyanenko and Roman Riabov—paid workers without withholding federal income or employment taxes from their gross wages and did not file with the IRS requisite tax forms for such workers employed at hotels, bars, and restaurants in Key West and at other locations in Florida.
In a series of prior cases filed in federal court in the Southern District of Florida, operators of the hospitality labor staffing companies have been convicted and sentenced to prison for facilitating the employment of unauthorized workers in the Key West hospitality industry and violating the employment tax laws. Mykhaylo Chugay, one of the operators of General Labor Solutions LLC, Liberty Specialty Services LLC, and Paradise Choice Cleaning LLC, was convicted at trial in June 2022, and sentenced to 292 months in prison. Two of Chugay’s coconspirators, Oleksandr Morgunov and Volodymyr Ogorodnychuk, each pleaded guilty and were sentenced to 96 months and 48 months in prison, respectively.
Batyr Myatiev, the owner and operator of American Hospitality and Golden Sands, pleaded guilty in March 2023 and was sentenced to 32 months in prison.
In March 2022, Mikus Berzins, Igor Kasyanenko, Riabov, and Andrejs Kozlovs each pleaded guilty, acknowledging their respective roles in the operation of Phoenix ADB. Igor Kasyanenko and Riabov were sentenced to 22 months and 18 months in prison, respectively, for their roles in the same conspiracy to which Nataliya Kasyanenko pleaded guilty in this case. Mikus Berzins and Andrejs Kozlovs were sentenced to 28 months and 12 months in prison, respectively, for knowingly hiring ten or more aliens who were not authorized to work in the United States.
In addition to the term of imprisonment, U.S. District Judge Donald L. Graham ordered Nataliya Kasyanenko to serve two years of supervised release and to pay approximately $1.09 million in restitution to the United States.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, announced the sentence.
IRS-CI Miami and HSI Miami investigated the case. Assistant U.S. Attorney Christopher J. Clark, Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft, Nicholas J. Schilling Jr., Matthew C. Hicks and Wilson Rae Stamm of the Tax Division prosecuted the case.
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-10001.
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Firearms Trafficker Sentenced to 3.5 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Juan Valentin Manriquez, 21, of Antioch, was sentenced today to three years and eight months in prison for unlawful dealing in firearms, U.S. Attorney Phillip A. Talbert announced.
According to court documents, co-defendant Andrew Jace Larrabure-Tuma used Snapchat to advertise narcotics and guns for sale. Law enforcement used undercover officers and a confidential informant to buy guns from Tuma. Tuma was 19 years old and could not legally purchase a gun in the state of California. Tuma ultimately introduced the informant working for law enforcement to his gun supplier, Manriquez. During the course of the following month, Manriquez sold the informant nine guns in exchange for cash.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sacramento Police Department, and the Western El Dorado Narcotics Enforcement Team. Assistant U.S. Attorney Justin Lee prosecuted the case.
Tuma pleaded guilty to unlawful dealing and manufacturing firearms and was sentenced to three years and four months in prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Felon Indicted for Possessing Rifle and a Straw-Purchased HandgunRead the Press Release
ALBANY, NEW YORK – Mana Sambola a/k/a “Coffee,” age 41, a citizen of Liberia residing in Saratoga Springs, New York, was indicted for possessing two firearms and four boxes of ammunition as a previously convicted felon. Christopher Krom, age 36, of Lake Luzerne, New York, was indicted for acting as a straw purchaser for one of Sambola’s firearms.
United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Homeland Security Investigations (HSI), Buffalo, New York Field Office, made the announcement.
According to the indictment and a previously filed criminal complaint, law enforcement searched Sambola’s apartment on May 22, 2023 and found an Anderson Manufacturing AM15 rifle emblazoned with the names of the Four Horseman of the Apocalypse: “Death,” “War,” “Famine,” and “Pestilence.” Investigators also recovered a Glock 43 pistol that Krom purchased on behalf of Sambola, as well as four boxes of ammunition. Sambola has prior felony convictions related to drugs and weapons, and as a result cannot lawfully possess these firearms or ammunition. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The charge filed against Sambola carries a maximum term of 15 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The charges filed against Krom carry a maximum term of 25 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
United States Magistrate Judge Daniel J. Stewart set conditions of release for Krom and ordered Sambola detained pending their trial before United States District Judge Anne M. Nardacci.
HSI is investigating the case with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the Warren County District Attorney’s and Sheriff’s Offices; the New York State Police; and the Saratoga County Sheriff’s Office. Assistant U.S. Attorney Jonathan S. Reiner is prosecuting the case.
El Paso Woman Posed as Immigration Services Employee, Sentenced to Seven Years in PrisonRead the Press Release
EL PASO, Texas – An El Paso woman was sentenced in a federal court in El Paso to 87 months in prison for wire fraud and impersonating a federal employee.
According to court documents, Ana Maria Hernandez, 53, portrayed herself to be a U.S. Citizenship and Immigration Services (CIS) employee and defrauded numerous undocumented noncitizen victims and their family members by falsely representing that she would process their immigration applications for a substantial fee. Hernandez’s victims provided her with the documentation required to file and adjust their immigration status. She was not an employee of CIS and never took any actions to adjust the victims’ status. Investigation revealed that Hernandez had amassed thousands of dollars of unexplained wealth within the 18 months coinciding with her fraudulent activity. Following her arrest on Jan. 23, 2023, the U.S. Attorney’s Office for the Western District of Texas and the Homeland Security Investigations (HSI) El Paso Division began receiving calls from dozens of potential victims in Hernandez’s fraud scheme.
Hernandez pleaded guilty in April to 10 counts of wire fraud and one count of impersonation. In addition to her 87 months imprisonment, Hernandez was ordered to pay $123,275 in restitution and a money judgement order of $19,870.
“This defendant misled vulnerable migrants for financial gain by convincing them that she was a federal employee who could assist them on their path to U.S. citizenship,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My office will prosecute anyone who fraudulently takes advantage of our federal agencies and their beneficiaries, and we will ensure their victims are afforded proper reparations.”
“The message is clear: Have no doubt. Individuals who impersonate a federal officer and exploit trusting individuals for their own personal gain, will be held accountable for their crimes,” said Special Agent in Charge Francisco B. Burrola for the HSI El Paso Division. “HSI will leverage its investigative abilities in order to identify, arrest and prosecute these piranhas in society.”
HSI investigated the case.
Assistant U.S. Attorney Patricia Aguayo prosecuted the case.
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Detroit Man Sentenced to Prison for Attempted Mail Fraud and Aggravated Identity TheftRead the Press Release
PITTSBURGH, PA – Milton Barth Reed, Jr., III, age 32, was sentenced today in federal court on charges of attempted mail fraud and aggravated identity theft, United States Attorney Eric G. Olshan announced.
According to information presented to the Court, Reed was part of a conspiracy that involved the use of personally identifying information belonging to other people to file fraudulent applications for Pandemic Unemployment Assistance and Federal Pandemic Unemployment Compensation benefits in states across the country, including Pennsylvania. On or about September 17, 2020, Reed traveled to Pittsburgh in an attempt to collect benefits that had been issued by Pennsylvania based on those fraudulent applications and were scheduled to be delivered in the area.
Judge Cathy Bissoon sentenced Reed to a total of 36 months in prison to be followed by three years supervised release.
Assistant United States Attorney Jeffrey R. Bengel prosecuted this case on behalf of the government.
The United States Department of Labor, United States Postal Inspection Service, and United States Department of Homeland Security conducted the investigation leading to the Indictment in this case.
Convicted lab owner ordered to forfeit over $187 million in health care fraud proceedsRead the Press Release
MIAMI – On Sept. 22, U.S. District Court Judge Rodolfo A. Ruiz, in Miami, ordered the defendant, Minal Patel, to forfeit over $187 million in health care fraud proceeds including over $30 million seized from personal and corporate bank accounts, a 2018 Red Ferrari Spider, a 2019 Land Rover Range Rover, and real property.
Minal Patel, 44, of Atlanta, owned LabSolutions LLC (LabSolutions), a lab enrolled with Medicare that performed sophisticated genetic tests. Patel conspired with patient brokers, telemedicine companies, and call centers to target Medicare beneficiaries with telemarketing calls falsely stating that Medicare covered expensive cancer genetic tests. After the Medicare beneficiaries agreed to take a test, Patel paid kickbacks and bribes to patient brokers to obtain signed doctors’ orders authorizing the tests from telemedicine companies. To conceal the kickbacks and bribes, Patel required patient brokers to sign sham contracts that falsely stated that the brokers were performing legitimate advertising services for LabSolutions, when, as Patel well knew, the brokers were deceptively marketing to Medicare beneficiaries and paying kickbacks and bribes to telemedicine companies for genetic testing prescriptions.
Patel knew the telemedicine doctors robo-signed prescriptions for expensive genetic testing even though they were not treating the beneficiaries, often did not even speak with them, and made no evaluation of medical necessity. From July 2016 through August 2019, LabSolutions submitted more than $463 million in claims to Medicare, including for thousands of medically unnecessary genetic tests, of which Medicare paid over $187 million. Patel enriched himself with the fruits of his crimes, including with the purchase of luxury items like a 2018 Red Ferrari Spider.
Exhibit from court record
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Miami Region, made the announcement.
FBI Miami and HHS-OIG Miami investigated the case. Trial Attorneys Jamie de Boer, Emily Gurskis, Reginald Cuyler Jr., Katherine Rookard, and Patrick Queenan of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Marx Calderon handled the asset forfeiture proceedings.
Related press release regarding sentencing available here: https://www.justice.gov/opa/pr/lab-owner-sentenced-463m-genetic-testing-scheme
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 19-cr-80181.
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