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14 November 2023
Two Indicted for Separate Threats Against JudgesRead the Press Release
Two individuals have been charged with making threats against federal judges in the Northern District of Texas, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
First, Alice Marie Pence, 67, of Port Charlotte, Florida, was charged with transmitting a threatening communication in interstate commerce and with intending to influence a federal official by threat. According to her indictment, Ms. Pence made a phone call in which she threatened to kill a U.S. District Judge with intent to impede, intimidate, and interfere with the performance of his official duties.
Second, Daniel Ray Garcia, 44, currently in Texas state prison in Midway, Texas, was charged with two counts of mailing a threatening communication. According to his indictment, Mr. Garcia mailed a letter threatening to kill or injure a different U.S. District Judge.
Ms. Pence is scheduled to make her initial appearance before U.S. Magistrate Judge Renee Harris Toliver on Wednesday, November 22, 2023, and Mr. Garcia made his initial appearance before U.S. Magistrate Judge Lee Ann Reno on Thursday, November 9, 2023.
An indictment is merely an allegation of wrongdoing, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, Ms. Pence faces up to 15 years in federal prison, and Mr. Garcia faces up to 20 years in federal prison.
The U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Matthew Weybrecht is prosecuting both cases.
Twenty-Three Gang Members and Associates Indicted on Racketeering, Drug Trafficking, and Firearm ChargesRead the Press Release
A 12-count indictment was unsealed in the Northern District of Georgia charging 23 defendants – all alleged Sex Money Murder (SMM) gang members and associates – with crimes including racketeering conspiracy, drug trafficking, and firearms violations.
According to court documents, SMM is a subset of The Bloods gang, which originated in Los Angeles in the early 1970s. The SMM subset has spread from the Bronx and New York to areas across the East Coast, including Georgia, where it operates inside and outside prisons and jails. The indictment alleges an extensive criminal enterprise in which SMM members, including inmates within the Georgia Department of Corrections (GDOC), orchestrated numerous crimes, including murders, attempted murders, attempted arson, drug trafficking within and outside of GDOC facilities, and wire and bank fraud. Eleven of the defendants were in prison when they allegedly committed or ordered the charged crimes.
“The defendants and their criminal associates are alleged to have committed murder, engaged in stabbings and attempted murder, and distributed thousands of dollars’ worth of illicit drugs inside and outside the Georgia prison system, all to enhance the power and prestige of their gang, the Sex Money Murder set of The Bloods,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “With this RICO indictment, the Criminal Division, along with our federal, state, and local partners, again shows its commitment to hold accountable and bring to justice violent gang members who terrorize our communities and attempt to control our country’s prison systems.”
“Gang activity poses a grave risk of harm to our communities as well as to many of our institutions,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “The defendants charged in this case allegedly perpetrated numerous violent and other criminal offenses, including multiple murders, brutal assaults, and drug trafficking crimes, on behalf of the gang Sex Money Murder. For more than a decade, these gang members and their associates allegedly orchestrated a criminal enterprise within and outside of multiple prisons to earn money for, boost their status in, and impose discipline required by the gang. This indictment is the culmination of a lengthy and carefully coordinated federal and state law enforcement investigation aimed at dismantling this violent group.”
“The FBI and its partners will not stand by as members of an elaborate criminal enterprise engage in acts that endanger our communities,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “There are consequences for partaking in illegal activity, and this does not change when some of the bad actors are already behind bars. We will continue to ensure that members of the Sex Money Murder gang face justice for their alleged misconduct, which includes drug trafficking, firearms violations, and egregious violence.”
“It’s alarming to think that these criminals were brazen enough to distribute dangerous drugs and commit heinous crimes while behind bars,” said Special Agent in Charge Robert J. Murphy of the Drug Enforcement Administration (DEA) Atlanta Division. “They must now face the consequences.”
The indictment alleges that the defendants or other SMM members committed multiple acts of violence in furtherance of the racketeering conspiracy, including storming a home and shooting multiple rounds of ammunition into a bathroom, killing a 9-month-old boy; on multiple occasions, incarcerated SMM members murdering, stabbing, or beating other inmates for disrespecting SMM leadership or violating SMM rules; and shooting and killing another SMM member on belief that the member had cooperated with law enforcement.
The following defendants have been charged in the indictment for conduct related to their alleged roles in the Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy and related crimes:
- Ryan Brandt, aka Street Life and Robert Kraft, 44, of Hays State Prison in Trion, Georgia, is charged with RICO conspiracy, conspiring, aiding, and abetting, and possessing a controlled substance and a controlled substance analogue with the intent to distribute;
- Kyle Oree, aka Nasty Nu, 52, of Washington State Prison in Davisboro, Georgia, is charged with RICO conspiracy, conspiring to possess and possessing a controlled substance with intent to distribute and a controlled substance analogue with the intent to distribute;
- Chase Pinckney, aka Chase Pickney, Three Shots, Noriega, and Sinatra, 38, of Ware State Prison in Waycross, Georgia, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Elton Jackson, aka 2gz and John Madden, 41, of Telfair State Prison in Helena, Georgia, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Sean Carr, aka Nut and Nutkase, 51, of FCI Talladega in Talladega, Alabama, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Lavorsia Jones, aka Shitbag, 23, of Dacula, Georgia, is charged with RICO conspiracy and conspiring, attempting, and possessing a controlled substance with intent to distribute and possessing a controlled substance analogue with the intent to distribute;
- Danielle Ford, 49, of Ellenwood, Georgia, is charged with RICO conspiracy, conspiring to possess a controlled substance with intent to distribute, and possessing a controlled substance analogue with the intent to distribute;
- Charlton King, aka Hell’s Militant Camp, 23, of Valdosta, Georgia, is charged with RICO conspiracy;
- Demarco Draughn, aka Shoota B, 28, of Macon State Prison in Oglethorpe, Georgia, is charged with RICO conspiracy;
- Richard Smith, aka Alleyway and Brett Favre, 36, of Ware State Prison in Waycross, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Rontavious Fowler, aka Lil Hot, 26, of Hancock State Prison in Sparta, Georgia, is charged with RICO conspiracy;
- Shavon Thomas, aka Shavon Edwards, 55, of Decatur, Georgia, is charged with RICO conspiracy and conspiring to possess a controlled substance with the intent to distribute;
- Lionel Edwards, aka Tony, Tyson, and Python, 41, of USP Florence in Florence, Colorado, is charged with RICO conspiracy;
- Anthony Jernigan, aka Hell Raiser, 36, of Hays State Prison in Trion, is charged with RICO conspiracy;
- Cedric Pierre, aka Flip, 23, of Robert A. Deyton Correctional Facility in Lovejoy, Georgia, is charged with RICO conspiracy and conspiring to possess and possessing a controlled substance with the intent to distribute;
- Ricardo Sanchez, 40, of Macon State Prison in Oglethorpe, is charged with conspiring to possess and possessing a controlled substance with the intent to distribute;
- Troy McCraine, 57, of Tennessee, is charged with conspiring to possess a controlled substance with the intent to distribute;
- Qawwee Mitchell, 36, of Gainesville, Georgia, is charged with conspiring to possess and possessing a controlled substance with the intent to distribute, possession of a firearm by a convicted felon, and possessing a firearm during and in relation to a drug trafficking crime;
- Sherri Gandy-Torres, 56, of Lakeland, Florida, is charged with conspiring to possess and possessing a controlled substance with the intent to distribute;
- Nyla Blacknell, 43, of Duluth, Georgia, is charged with conspiring to possess and possessing a controlled substance with the intent to distribute and possessing a firearm during and in relation to a drug trafficking crime;
- Tracey Wise, 46, of Milledgeville, Georgia, is charged with conspiring to possess a controlled substance with the intent to distribute;
- Shounnette Wooten, 50, of Gray, Georgia, is charged with conspiring to possess a controlled substance with the intent to distribute; and
- Kierra Williams, 31, of Milledgeville, Georgia, is charged with conspiring to possess a controlled substance and possessing a controlled substance analogue with the intent to distribute.
If convicted, the defendants face penalties including up to life in prison for the racketeering conspiracy, 10 years to life in prison for the narcotics conspiracy and drug trafficking charges, and five years to life in prison for the firearms offenses.
The FBI, the Atlanta-Carolinas High Intensity Drug Trafficking Areas Program, the DEA, and the Georgia Department of Corrections are investigating the case, with valuable assistance from the Georgia Attorney General’s Office, the Georgia Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Prisons, the U.S. Marshals Service, the Georgia Department of Community Supervision, the Georgia State Patrol, the Brookhaven Police Department, the Butts County Sheriff’s Office, the DeKalb County Police Department, the Douglasville Police Department, the East Point Police Department, the Fulton County Sheriff’s Office, the Gwinnett County Police Department, the Marietta Police Department, the Riverdale Police Department, the Sandy Springs Police Department, and the South Fulton Police Department.
Trial Attorney Lisa M. Thelwell of the Criminal Division’s Violent Crime and Racketeering Section (VICAR) and Assistant U.S. Attorney Theodore S. Hertzberg for the Northern District of Georgia are prosecuting the case, and former VICAR Trial Attorney Rebecca R. Dunnan previously prosecuted the case.
The indictment is 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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tucson Man Convicted of Second-Degree Murder for Killing Deputy United States MarshalRead the Press Release
TUCSON, Ariz. – Ryan Schlesinger, 31, of Tucson, was convicted yesterday by a federal jury of second-degree murder of a federal officer. Second-degree murder is a homicide committed with malice aforethought, which means deliberately and intentionally, or recklessly with extreme disregard for human life. Second-degree murder is a class A felony punishable by up to life in prison.
Schlesinger also was convicted of three counts of attempted murder of a federal officer, a felony punishable by up to 20 years in prison; four counts of assault of a federal officer, a felony punishable by up to 20 years in prison; and five counts of discharging a firearm during the commission of a violent offense, a felony punishable by not less than 10 years, and up to life, in prison. The guilty verdicts came after a 13-day trial before United States District Judge Raner C. Collins. Schlesinger’s sentencing is set for January 22, 2024.
On November 29, 2018, deputies with the United States Marshals Arizona Wanted Violent Offender Task Force attempted to serve a felony arrest warrant on Schlesinger for allegedly stalking a Tucson Police Department (TPD) sergeant. Schlesinger refused to exit his residence and opened fire on the deputies who were outside his window. Deputy U.S. Marshal Chase White was shot twice in the upper torso and died a short time later.
Prior to the murder, Schlesinger had been in a yearlong dispute with TPD. Schlesinger sent multiple threatening emails, went to a TPD officer’s parents’ home, and attempted to arrest a TPD sergeant. Despite being under multiple active injunctions against harassment, Schlesinger possessed three firearms in violation of those court-issued injunctions. The evidence showed that Schlesinger sent a final threatening email to TPD hours before the murder. While the Task Force attempted to execute the arrest warrant, Schlesinger outfitted himself in body armor. After murdering Deputy White and committing the other crimes of which he was convicted, Schlesinger ultimately surrendered to TPD, wearing the body armor and a ballistic helmet.
Deputy White was 41 years old. He is survived by his wife and four children. He was also a lieutenant colonel with the United States Air Force Reserve. Deputy White was the first Deputy U.S. Marshal killed in the line of duty in Tucson in 66 years.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant United States Attorneys Sarah B. Houston and Jane L. Westby, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-18-02719-TUC-RCC
RELEASE NUMBER: 2023-178_Schlesinger# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Three Men Sentenced for $54M Fraudulent Prescriptions SchemeRead the Press Release
Three men were sentenced today in connection to a $54 million bribery and kickback scheme involving TRICARE, a federal program that provides health insurance benefits to active duty and retired service members and their families.
David Byron Copeland, 55, of Tallahassee, Florida, was sentenced to four years and three months in prison following his conviction at trial in June for paying and receiving health care kickbacks. James Wesley Moss, 60, of Huntsville, Alabama, and Michael Gordon, 60, of Fort Myers, Florida, were sentenced to two years and three months and one year and six months in prison, respectively, following their guilty pleas to a kickback and fraud conspiracy, among other charges.
According to court documents and evidence presented at trial, Moss was a part-owner and CEO of Florida Pharmacy Solutions (FPS), a Florida-based pharmacy that specialized in compounded prescription drugs. Copeland was also a part-owner and senior sales manager at FPS, and Gordon was a lead sales representative. Moss, Copeland, and Gordon, along with their accomplices, engaged in a practice known as “test billing” to develop the most expensive combination of compounded drugs to maximize reimbursement from TRICARE. Moss, Copeland, Gordon, and their accomplices targeted physicians who treated TRICARE beneficiaries and paid bribes and kickbacks to physicians and salespeople to encourage the referral of prescriptions to FPS. The bribes included lavish hunting trips and expensive dinners. In addition, FPS employees used “blanket letters of authorization” that allowed FPS to modify the prescription components to make them more profitable.
Moss paid Copeland and Gordon millions of dollars in kickbacks based on a percentage of the amount that TRICARE reimbursed for their prescriptions, which provided an incentive to seek prescriptions for the most expensive compounded drugs possible, including pain and scar creams. Copeland facilitated the kickbacks through companies he set up to receive and funnel the payments. From late 2012 through mid-2015, FPS billed TRICARE over $54 million for its compounded pharmaceuticals.
In April, co-defendant Edward Christopher White was sentenced to two years and nine months in prison after pleading guilty for his role in the scheme.
Acting Assistant Attorney Nicole M. Argentieri of the Justice Department’s Criminal Division; U.S. Attorney Roger Handberg for the Middle District of Florida; Special Agent in Charge Darrin K. Jones of the Department of Defense Office of Inspector General (DOD-OIG), Defense Criminal Investigative Service, Southeast Field Office; Acting Special Agent in Charge Stephen Mahmood of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), Miami Regional Office; Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General (VA-OIG), Southeast Field Office; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Special Agent in Charge David Walker of the FBI Tampa Field Office made the announcement.
The DOD-OIG, HHS-OIG, VA-OIG, and FBI investigated the case.
Trial Attorneys Devon Helfmeyer, Clayton Solomon, and Katie Rookard of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24.7 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Three Charged in $1.5 Million Conspiracy to Fraudulently Claim Tax RefundsRead the Press Release
NASHVILLE – A federal grand jury returned an indictment last month charging Darwing Dubon-Castro, 32, and Josselyn Zamora-Carranza, 28, of Murfreesboro, Tennessee, and Carlos Rodriguez, 22, of Antioch, Tennessee, with conspiracy to commit fraud and to defraud the United States and passing forged United States Treasury checks. Dubon was also charged with wire and mail fraud and aggravated identity theft related to the filing of fraudulent federal income tax returns, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
Defendants Zamora-Carranza and Rodriguez were arrested on October 26 and made appearances before a U.S. Magistrate Judge. Defendant Dubon-Castro was arrested and made his initial appearance yesterday.
According to the indictment, from February 2019 to October 2023, the defendants conspired to fraudulently obtain tax refunds from the IRS by filing tax returns using others’ stolen identities and false wage information. The indictment alleges that Dubon filed these tax returns with the IRS and directed the IRS to send the refunds to himself and his co-defendants. As a result of their scheme, the defendants defrauded the IRS of more than $1.5 million.
After receiving the tax refund checks, Dubon, Zamora, and Rodriguez used forged identification documents so that they could cash the tax refund checks. During the execution of search warrants, federal agents found over 100 such false identifications.
If convicted, Dubon faces a maximum penalty of 20 years in prison for the fraud charges and a mandatory 2 years in prison for the aggravated identity theft, and Zamora and Rodriguez each face a maximum penalty of 10 years in prison. All defendants also face a $250,000 fine on each count.
This case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Mitchell T. Galloway is prosecuting the case.
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Tampa Man Sentenced to More Than 36 Years in Federal Prison for Producing and Distributing Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Mizelle has sentenced Mark Peterson (30, Tampa) to 36 years and 8 months in federal prison for production and distribution of child sex abuse material. The court also ordered Peterson to forfeit electronic devices used during the offense and pay $22,419.44 in restitution. Peterson had pleaded guilty on May 23, 2023.
According to court documents, between 2017 and 2018, through the social media application Facebook, Peterson enticed and coerced a 16-year-old victim to produce sexually explicit images and videos of herself. In 2020, through the social media application Discord, Peterson traded images and videos of children, including toddlers and babies, being sexually abused.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilyssa M. Spergel.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
St. Paul Felon Pleads Guilty to Illegal Firearm PossessionRead the Press Release
MINNEAPOLIS – A St. Paul man has pleaded guilty for the possession of a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents on July 23, 2021, Ember Shawndale White, 23, was found in possession of a Beretta APX 9x19mm pistol. Because White has multiple prior felony convictions in Ramsey, Hennepin, and Dakota Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
White pleaded guilty yesterday to one count of possessing a firearm as a felon in U.S. District Court before Judge Joan N. Ericksen.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Paul Police Department.
Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.
South Carolina Man Pleads Guilty to Federal Sex Trafficking OffensesRead the Press Release
WASHINGTON – A South Carolina man pleaded guilty today in the U.S. District Court for the District of South Carolina to one count of sex trafficking by force, fraud or coercion, and one count of sex trafficking of a minor.
According to court documents, Aaron T. Simmons, 26, of Greenville, used force, threats of force, fraud and coercion to compel one adult victim into engaging in commercial sex acts in the Greenville area between Aug. 2019 and Aug. 2020. The defendant also caused a minor victim to engage in commercial sex acts in the Greenville area between Aug. 2019 and Nov. 2019.
“Sex trafficking is a pernicious crime that preys upon vulnerable victims, including minors, and causes them grave harm,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains committed to prosecuting human traffickers and standing up for the defenseless people they exploit.”
“Today’s plea sends a message to those who harm others in this vile way: you will be held accountable,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Crimes of this nature can create lifelong trauma for survivors. We will continue to work with our law enforcement partners to relentlessly prosecute trafficking cases.”
“The FBI and its partners are committed in our resolve to topple human trafficking operations and providing a path towards healing for survivors,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “This guilty plea is a crucial step towards justice for the victims, who are suffering lasting trauma from the defendant’s heinous crimes.”
A sentencing hearing will be scheduled for a later date. Simmons faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Columbia Field Office, Greenville Resident Agency and the Greenville Police Department investigated the case.
Assistant U.S. Attorney Carrie Fisher Sherard for the District of South Carolina and Trial Attorney Francisco Zornosa of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
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South Carolina Man Pleads Guilty to Federal Sex Trafficking OffensesRead the Press Release
A South Carolina man pleaded guilty today in the U.S. District Court for the District of South Carolina to one count of sex trafficking by force, fraud or coercion, and one count of sex trafficking of a minor.
According to court documents, Aaron T. Simmons, 26, of Greenville, used force, threats of force, fraud and coercion to compel one adult victim into engaging in commercial sex acts in the Greenville area between August 2019 and August 2020. The defendant also caused a minor victim to engage in commercial sex acts in the Greenville area between August 2019 and November 2019.
“Sex trafficking is a pernicious crime that preys upon vulnerable victims, including minors, and causes them grave harm,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains committed to prosecuting human traffickers and standing up for the defenseless people they exploit.”
“Today’s plea sends a message to those who harm others in this vile way: you will be held accountable,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Crimes of this nature can create lifelong trauma for survivors. We will continue to work with our law enforcement partners to relentlessly prosecute trafficking cases.”
“The FBI and its partners are committed in our resolve to topple human trafficking operations and providing a path towards healing for survivors,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “This guilty plea is a crucial step towards justice for the victims, who are suffering lasting trauma from the defendant’s heinous crimes.”
A sentencing hearing will be scheduled for a later date. Simmons faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Columbia Field Office, Greenville Resident Agency and the Greenville Police Department investigated the case.
Assistant U.S. Attorney Carrie Fisher Sherard for the District of South Carolina and Trial Attorney Francisco Zornosa of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
South Carolina Man Found Guilty of Obstruction and Other Charges During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – A South Carolina man was convicted on Monday, Nov. 13, 2023, of one felony and four misdemeanor charges related to his conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.
Derek Cooper Gunby, 43, of Anderson, South Carolina, was convicted by a jury of one count of obstruction of an official proceeding, a felony, and four misdemeanor counts of entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, disorderly conduct in a Capitol building, and parading, demonstrating, or picketing in a Capitol building.
U.S. District Court Judge Paul L. Friedman will sentence Gunby on March 1, 2024.
According to evidence presented during the trial, Gunby drove from his residence in South Carolina to Washington, D.C., to attend the “Stop the Steal” rally at the Ellipse on Jan. 6, 2021. On the morning of January 6th, Gunby posted a photo of himself in fatigues traveling on the Metro, with the caption, “Up at Zero Dark Thirty to stop this steal.” Gunby attended the “Stop the Steal” rally and afterward headed toward the U.S. Capitol building.
Gunby entered the restricted grounds on the west side of the Capitol at around 2:15 p.m. and approached the northwest stairs. Gunby narrated a recording on his phone stating, “I think that the building’s been breached. . . . We’re trying to head up and get in there. The scaffolding up there is just crawling with people and these steps, they’ve already made it up all the way up the stairs. And tear gas has been deployed over here.
As Gunby made his way up the northwest stairs, he continued to narrate the scene, “We’re on the Capitol steps… and we are trying to storm the Capitol building. We’re taking the country back. You don’t get to do this to my country and not suffer consequences.” Gunby then made his way into the Northwest Courtyard, where he joined the crowd of rioters pushing their way into the Capitol building through the Senate Parliamentarian Door. As he moved closer and closer towards the building’s entrance, Gunby explained, “We’ve got some breaches in the Capitol building… in which I’m about to go, because enough is enough… We’re depending on Mike Pence to do the right thing in certifying this vote? No.” Gunby also encouraged other rioters in front of him to push their way into the Capitol building by shouting, “Push forward! Push forward!”
At around 2:58 p.m., Gunby entered the Capitol building via the Senate Parliamentarian Door and recorded video as he moved further into the building. However, police positioned further down the hallway forced rioters out of the building. At approximately 3:01 p.m., officers pushed Gunby and the rest of the rioters back out of the Senate Parliamentarian Door.
Immediately after his expulsion from the building, Gunby remained on Capitol grounds and made his way to the Upper West Terrace. From that vantage point, Gunby witnessed rioters and police clash below and joined in a “Police stand down!” chant. He then moved closer to the Lower West Terrace Tunnel, closer to where the violence was taking place, and recorded additional video of the confrontations between police and rioters. Gunby remained on restricted Capitol grounds for well over two hours.
Shortly after the riot, Gunby recorded a video while on the Metro. During the video, Gunby spoke for almost ten minutes about the riot and why he believed it occurred. Gunby stated, in part, that “We all pretty much surrounded the Capitol. We are at a point now in this country where they are going to listen to us, they have to listen to us” and “If the American patriot wanted to storm this Capitol, take over this building, and take care of all of Congress in there, they could do it. They could do it…”
The FBI arrested Gunby on Aug. 10, 2021, in South Carolina. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the District of South Carolina.
This case is being investigated by the FBI’s Columbia and Washington Field Offices. Valuable assistance was provided by the United States Capitol Police and the Metropolitan Police Department.
In the 34 months since Jan. 6, 2021, more than 1,200 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 400 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
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Selling ghost guns to Mexican cartel sends felon to prisonRead the Press Release
LAREDO, Texas – A 37-year-old Laredo resident has been sentenced for possession of a machine gun, possession of a firearm by a convicted felon and conspiracy to possess intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Jaime Jesus Esquivel pleaded guilty June 6, admitting, in part, to producing and illegally exporting fully automatic firearms to Mexico for the use of drug cartels.
U.S. District Marina Garcia Marmolejo has now handed Esquivel a total 120-month-term of imprisonment to be immediately followed by three years of supervised release. At the hearing, the court heard that Esquivel bragged to an undercover officer that he manufactured and trafficked hundreds of firearms into Mexico. In handing down the sentence, the court noted that in trafficking both narcotics and firearms that Esquivel was trafficking in death.
As part of the undercover investigation, authorities conducted four controlled purchases of cocaine and multiple AR-type fully automatic rifles. The weapons were ghost guns, a common term for privately made firearms that are absent any manufacture marks of identification. Esquivel assembled and manufactured these weapons for distribution.
Esquivel also made the firearms from various components of combat weapons including Colt model M4 parts and a 3D-printed polymer AR-type drop in auto sear or machine gun conversion device (MGCD). An MGCD is any part designed and intended solely and exclusively for use in converting a weapon into a machine gun.
Law enforcement executed two search warrants and seized completed and privately manufactured AR-type lower receivers, various firearm parts, firearm manufacturing tools as well as 950 rounds of assorted ammunition, a 7.62mm rifle, a 12-gauge shotgun and a privately manufactured short-barrel fully automatic rifle without serial numbers or industry markings. They also found meth, cocaine and a 3D printer.
As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law.
Esquivel will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and Laredo Police Department conducted the investigation.
San Jose Man Sentenced to Serve over Six Years in Prison for Distributing FentanylRead the Press Release
OAKLAND – Ian Edward Parrish was sentenced to serve 80 months in prison for distributing fentanyl that resulted in the fatal overdose an Ohio resident, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigations (FBI) Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Hon. Araceli Martínez-Olguín, United States District Judge.
Parrish, 28, of San Jose, Calif., pleaded guilty to the charge on August 28, 2023. In his plea agreement, Parrish admitted that on August 16, 2022, he sold four loose pills to an individual in a bar in Fremont, Calif. Two of the pills were counterfeit “M30” pills that were blue and had the appearance of “Perc30,” a common prescription pain killer that contains Percocet, a federally controlled substance. Parrish admitted that when the victim asked if the pills were real, he told him that they were. But, contrary to the assurance he gave the victim, Parrish admitted that he did not actually know whether the pills were genuine Percocet. According to the plea agreement, Parrish admitted that the government could prove the pills he sold contained fentanyl. After buying the pills, the victim left the bar and consumed one. Approximately 17 minutes later, the victim began to sway and lose balance, and then lost consciousness. According to the plea agreement, emergency personnel arrived and tried unsuccessfully to resuscitate the victim; the victim was pronounced dead at the scene. In the plea agreement, Parrish admitted that the cause of the victim’s death was the pill the victim consumed and that Parrish sold to him.
According to the government’s sentencing memorandum, the victim left behind a spouse, as well as 6 children and 11 grandchildren.
On August 22, 2023, Parrish was charged by Information with distributing the fentanyl, in violation of 21 U.S.C. 841(a)(1), (b)(1)(C). He pleaded guilty to the charge.
In addition to the 80-month federal prison sentence, Judge Martínez-Olguín ordered Parrish to serve three years of supervision following his release from federal prison. Parrish was remanded to federal custody after the sentencing hearing and began serving his prison sentence immediately.
The case was prosecuted by Assistant U.S. Attorney Evan M. Mateer with the assistance of Isabel Trevizo and Jessie Chelsea. The prosecution is the result of an investigation by FBI and the Fremont Police Department.
One Pill Can Kill: Beware of pills bought on the street: One Pill Can Kill. Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs, but can be obtained at a lower cost. However, very small variations in the amount or quality of fentanyl create huge effects on the potency of the counterfeit pills and can easily cause death. Fentanyl has now become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to resemble pills that are sold legitimately at pharmacies.
Russian and Moldovan National Pleads Guilty to Operating Illegal Botnet Proxy Service that Infected Tens of Thousands of Internet-Connected Devices Around the WorldRead the Press Release
SAN JUAN, Puerto Rico – A Russian and Moldovan national pled guilty to three counts of violating 18 U.S.C. § 1030(a)(5)(A) Fraud and Related Activity in Connection with Computers.
The FBI today revealed US law enforcement’s dismantlement of a botnet proxy network and its infrastructure associated with the IPStorm malware.
According to online reports, the botnet infrastructure had infected Windows systems then further expanded to infect Linux, Mac, and Android devices, victimizing computers and other electronic devices around the world, including in Asia, Europe, North America and South America.
In connection with the operation of that IPStorm malware and botnet proxy service, on September 18, 2023, Sergei Makinin, a Russian and Moldovan national, pled guilty to three counts of violating 18 U.S.C. § 1030(a)(5)(A), knowingly causing the transmission of a program that intentionally caused damage without authorization to protected computers. Each count of conviction carries a statutory maximum of ten years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, from at least June 2019 through December 2022, Makinin developed and deployed malicious software to hack thousands of Internet-connected devices around the world, including in Puerto Rico. Makinin controlled these infected devices as part of an extensive botnet, which is a network of compromised devices. The main purpose of the botnet was to turn infected devices into proxies as part of a for-profit scheme, which made access to these proxies available through Makinin’s websites, proxx.io and proxx.net. Through those websites, Makinin sold illegitimate access to the infected, controlled devices to customers seeking to hide their Internet activities. A single customer could pay hundreds of dollars a month to route traffic through thousands of infected computers. Makinin’s publicly-accessible website advertised that he had over 23,000 “highly anonymous” proxies from all over the world. Makinin acknowledged that he gained at least $550,000 from the scheme. Pursuant to the plea agreement, Makinin will forfeit cryptocurrency wallets linked to the offense.
“This investigation shows that we will use every lawful tool at our disposal to disrupt cybercriminals, regardless of their location,” said U.S. Attorney Stephen Muldrow. “This case serves as a warning that the reach of the law is long, and criminals anywhere who use computers to commit crimes may end up facing the consequences of their actions in places they did not anticipate.”
“It is no secret that in present times, much criminal activity is conducted or enabled through cybernetic means. Cybercriminals seek to remain anonymous and derive a sense of security because they hide behind keyboards, often thousands of miles away from their victims,” said Joseph González, Special Agent in Charge of the FBI’s San Juan Field Office. “The FBI’s cyber mission has been to impose risk and consequences on our adversaries, ensuring cyberspace is no safe space for criminal activity. This case is one example of how we are doing just that, and I’d like to thank the DOJ’s Computer Crime and Intellectual Property Section, the US Attorney’s Office for the District of Puerto Rico, and the FBI San Juan Cyber Team for their meticulous and relentless work in this case.”
The scope of the law enforcement dismantlement was limited to disabling the defendant’s infrastructure and did not extend to the information of the owners and users of the computers. The FBI emphasizes the importance of keeping computers updated with the latest security patches and operating systems.
The case was investigated by the FBI San Juan Cyber Team, with cooperation from the FBI legal attaché office in Madrid in coordination with the Spanish National Police-Cyber Attack Group; and the FBI Legal Attaché office in Santo Domingo, in coordination with the Dominican National Police-Interpol and Dominican National Police-International Organized Crime Division, and Ministry of the Interior and Police-Immigration Directorate. Valuable assistance was provided by the National Cyber-Forensics and Training Alliance (NCFTA.net), including Bitdefender DRACO Team, Anomali Threat Research, and Intezer. The NCFTA is an alliance of business and law enforcement working together to disrupt cybercrime.
The case was prosecuted by AUSA Jonathan Gottfried of the United States Attorney’s Office for the District of Puerto Rico and Senior Counsel Jane Lee and Jeff Pearlman of the Department of Justice’s Computer Crime and Intellectual Property Section, with assistance from the Office of International Affairs.
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Registered sex offender who attempted to have sex with 11 y/o girl going to prisonRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Mathew Schulman, 37, of Rochester, NY, who was convicted of possession of child pornography following a previous conviction, was sentenced to serve 186 months in prison and 15 years supervised release by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that between May 2021, and June 2022, Shulman engaged in sexually explicit online communications with who he believed was an 11-year-old girl, but was actually an undercover New York State Police (NYSP) Investigator. During the conversations, Shulman asked the child to produce and send him child pornography, and he tried to persuade the child to meet him for sex. Shulman also distributed child pornography depicting prepubescent minors in an attempt to groom the child for sexual activity. On June 7, 2022, the NYSP and Homeland Security Investigations executed a search warrant at Shulman’s Rochester residence and took him into custody. At the time of his arrest, Shulman was a registered sex offender on probation for a June 2016 conviction of possessing child pornography in Monroe County Court.
The sentencing is the result of an investigation by the New York State Police, under the direction of Major Miklos Szoczei II, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
Recidivist Cocaine Trafficker Convicted of Sending Hundreds of Kilograms of Cocaine Hidden Inside FurnitureRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of OMAR LOPEZ CASTRO for his participation in a cocaine trafficking scheme between 2018 and 2022. The jury convicted LOPEZ CASTRO following a one-week trial before U.S. District Judge P. Kevin Castel. Sentencing of LOPEZ CASTRO is scheduled for February 22, 2024.
U.S. Attorney Damian Williams said: “The unanimous jury verdict holds Omar Lopez Castro accountable for his leadership role in a widespread cocaine trafficking organization that flooded the streets with hundreds of millions of dollars’ worth of cocaine. After serving a 10-year sentence for a prior SDNY cocaine trafficking conviction, Lopez Castro returned to trafficking hundreds of kilograms of his cocaine, this time hidden inside of furniture. He now faces the prospect of a lengthy prison sentence for his crime.”
According to the allegations contained in the Superseding Indictment and the evidence presented in court during the trial:
LOPEZ CASTRO was a member of a drug trafficking organization (“DTO”) that engaged in a cocaine-trafficking scheme between 2018 and 2022 involving the concealment of cocaine inside custom-built furniture. Between in or about September 2018 and October 2022, the DTO sent more than 30 shipments of cargo from Puerto Rico to the continental United States. The cocaine was concealed in more than approximately 80 custom cube-shaped coffee tables or other furniture. While the organization falsely represented that the cargo contained furniture, that furniture in fact concealed hundred-kilogram quantities of cocaine. During the course of the investigation, law enforcement seized approximately 350 kilograms of cocaine from four of the DTO’s shipments. In total, the DTO shipped approximately 4,500 kilograms of cocaine, worth at least $135,000,000 on the street. Many of the organization’s shipments were sent to addresses in the Southern District of New York including in Yonkers and the Bronx. Others were sent up and down the East Coast.
LOPEZ CASTRO was a Puerto Rico-based member of the DTO who owned approximately 274 kilograms of cocaine shipped from Puerto Rico to New Jersey and Pennsylvania. Soon after his release from federal prison from a prior conviction in the Southern District of New York for trafficking cocaine from Puerto Rico to New York, LOPEZ CASTRO connected with other members of the DTO and hired the DTO members to ship his cocaine inside of custom-built furniture. All told, the street value of cocaine that LOPEZ CASTRO owned and trafficked was more than $8 million.
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LOPEZ CASTRO, 48, of Carolina, Puerto Rico, was found guilty of conspiring to distribute and possess with the intent to distribute narcotics, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
This prosecution 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.
Mr. Williams praised the outstanding investigative work of the New York City Police Department; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the U.S. Postal Inspection Service; and the Department of Homeland Security, Homeland Security Investigations in this investigation.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Juliana N. Murray and Andrew Jones, with the assistance of Paralegal Specialists Jacqueline Hauck and Sabrina Jim Munoz, are in charge of the prosecution.
Randolph Count Man Sentenced to 97 Months for Receipt of Child PornographyRead the Press Release
GREENSBORO – A Trinity man was sentenced yesterday to 97 months in prison after pleading guilty to one felony count of receipt of child pornography announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, in August 2021, the National Center for Missing and Exploited Children (NCMEC) received a cybertip that an individual in Trinity, North Carolina was uploading and distributing child pornography. Law enforcement investigated and determined Kevin Lee NUNN was responsible. Based upon a forensic review, NUNN had thousands of images and videos of child sexual exploitation.
NUNN was sentenced to a 97-month term of imprisonment by the Honorable Catherine C. Eagles, Chief United States District Judge in the United States District Court for the MDNC. In addition to prison time, NUNN was ordered to pay restitution to victims totaling $36,500.00 and special assessments totaling $6,100.00. He pleaded guilty to one count of receipt of child pornography on June 9, 2023.
The case was investigated by the Department of Homeland Security and the Randolph County Sheriff’s Office and was prosecuted by Assistant United States Attorneys K. P. Kennedy Gates and Lindsey Freeman.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Providence Man Found in Possession of $200,000 in Stolen Checks Pleads Guilty to Mail Theft, Violating the Terms of Federal Supervised ReleaseRead the Press Release
PROVIDENCE, RI – A Providence man who was found to be in possession of nearly $200,000 in stolen and fraudulent checks while serving a term of federal supervised release for an unrelated bank fraud conviction, pleaded guilty in federal court today to a charge of possession of stolen mail, announced United States Attorney Zachary A. Cunha.
According to charging documents and information presented to the court, on February 2, 2023, during his arrest on an unrelated state narcotics charge, Edmilson Rodrigues, 25, was found to be in possession of ninety-one legitimate checks totaling approximately $170,758.26 and eight fraudulent checks totaling approximately $22,838.01. Also seized was blank check-paper stock used for creating fraudulent checks.
An investigation by agents with the United States Postal Inspection Service determined that the legitimate checks seized from Rodrigues’ residence had been mailed out by various businesses, but were never received by the intended recipients. Combined with the fraudulent checks, the intended loss totals $193,596.27.
At the time of his arrest on a state drug charge, Rodrigues was serving a term of federal supervised release that followed a sentence of twenty-four months incarceration imposed by a federal judge in September 2020 as a result of his conviction on bank fraud charges.
Rodrigues is scheduled to be sentenced on February 22, 2024, on the stolen mail charge and for violating the terms of his federal supervised release. The defendant’s sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney Ly T. Chin
The matter was investigated by the United States Postal Inspection Service and the Providence Police Department.
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Prisoner Sentenced to Additional 30 Years for Drug Trafficking in Multiple North Carolina Counties Using Contraband Prison CellphonesRead the Press Release
GREENSBORO – ENIS DAUTI was sentenced today to 360 months in prison after pleading guilty to conspiracy to possess with intent to distribute methamphetamine, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, DAUTI, age 38, was serving a 108-month prison sentence after pleading guilty to conspiracy to possess with intent to distribute methamphetamine in 2016 in the MDNC and was scheduled to be released from federal prison in August 2023. At the time of the offense, DAUTI was incarcerated at Northlake Federal Correctional Institution (FCI) in Michigan.
Over the course of several months in 2021 and 2022, DAUTI organized multiple sales of methamphetamine that involved codefendants SCOTT ALAN SHORES, ASHLEY NICOLE MORROW, AMY ELLISSA HAMMER, and DANIEL WAYNE MIZE in Davidson and Chatham counties. Each sale involved DAUTI managing the sale of drugs using a contraband prison cellphone to communicate with his codefendants and organize the shipment of methamphetamine through the mail. SHORES, MORROW, HAMMER, and MIZE were indicted alongside DAUTI on one count of conspiracy to possess with intent to distribute quantities of methamphetamine.
DAUTI was sentenced today to a 360-month term of imprisonment and seven years of supervised release by the Honorable Catherine C. Eagles, Chief United States District Judge in the United States District Court for the MDNC.
“This case is a perfect example of the danger contraband cellphones present in our prison facilities,” said United States Attorney Sandra Hairston. “With a contraband cellphone, inmates can continue to run their drug enterprises or commit other crimes from their prison cells. Today’s sentence sends a clear message that such flagrant disrespect for the rule of law will not be tolerated.”
The case was investigated by United States Postal Inspection Service, the Davidson County Sheriff's Office, Homeland Security Investigations, the Drug Enforcement Administration, the Chatham County Sheriff's Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by Assistant United States Attorneys Lindsey Freeman and Kyle Pousson.
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Pine Hill Man Pleads Guilty to Sexual AbuseRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Tony Jake Jr. pled guilty to abusive sexual contact. Jake, 75, of Pine Hill, New Mexico, and an enrolled member of the Navajo Nation, will remain on conditions of release pending sentencing, which has not been scheduled.
According to court records, on May 28, 2022, Jane Doe, a child under the age of 12, reported to her mother that she had been sexually assaulted by a man she did not know during a church service. Special Agents from the FBI responded and began interviewing individuals who had seen Jane Doe that day. One witness reported that they had noticed Jane Doe was not with the other children and when they went to find her, they found her with Jake and that Jane Doe was visibly upset.
In his plea agreement, Jake admitted that he had approached Jane Doe, that he touched her inappropriately and that she was upset by his conduct.
At sentencing, Jake faces any term of years up to life in prison followed by 5 years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Investigation and Department of Criminal Investigations. Assistant United States Attorney Kimberly Bell is prosecuting the case.
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Orlando Man Pleads Guilty to Possession with the Intent to Distribute FentanylRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces that O’Neil Clifton Gordon (24, Orlando) has pleaded guilty to possession with the intent to distribute fentanyl. Gordon faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on March 10, 2022, law enforcement officers observed what they believed to be a drug exchange between Gordon and one of his known associates. As Gordon left the exchange, deputies from the Orange County Sheriff’s Office (OCSO) turned on their vehicles’ lights and sirens and attempted to stop Gordon. Instead of stopping, Gordon fled in his vehicle and eventually escaped. The next day, a felony arrest warrant was issued.
On April 28, 2022, OSCO deputies observed Gordon drive down Colonial Drive in Orlando, realized he had an active warrant, and conducted surveillance. Gordon parked outside a barbershop. While in the parking lot, OCSO observed what they believed to be a hand-to-hand drug exchange.
Gordon eventually left the parking lot, got in his car, and drove away. OCSO deputies followed Gordon until he pulled into his neighborhood. The deputies turned on their lights and sirens and attempted to arrest Gordon. Gordon exited his vehicle and began running. OCSO eventually caught up to Gordon and arrested him. They recovered $830 cash from his pockets.
Inside Gordon’s vehicle, OCSO officers located a Glock firearm, extended magazine, and 21 rounds of ammunition. They also recovered a backpack containing narcotics, including 14.46 grams of fentanyl, a digital scale, and plastic baggies from the front passenger seat.
OCSO got a warrant to search Gordon’s room where they recovered additional ammunition, narcotics, and a pill press.
OCSO also obtained a warrant to search Gordon’s Instagram account where they located photographs of him with a firearm and conversations regarding the sale of cocaine, pills, and marijuana.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office. It is being prosecuted by Special Assistant United States Attorney Rachel S. Lyons.
Nonfungible Token (NFT) Developer Pleads Guilty to an International Scheme to Defraud NFT PurchasersRead the Press Release
Earlier today, Aurelien Michel, a French national who had been residing in the United Arab Emirates (UAE), pled guilty at the federal courthouse in Brooklyn, New York to conspiring to commit wire fraud in connection with defrauding purchasers of “Mutant Ape Planet” NFTs, a type of digital asset. Today’s proceeding took place before United States Magistrate Judge Vera M. Scanlon. When sentenced, Michel faces up to five years in prison. Michel has also agreed to pay $1.4 million in forfeiture. Michel was charged in January 2023.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI) announced the guilty plea.
“With today’s guilty plea, Michel has admitted that he conspired with others to defraud consumers eager to participate in a new digital asset market,” stated United States Attorney Breon Peace. “Our Office is acutely aware that criminal actors are taking advantage of the constant pace of innovation in the digital asset space and the investing public’s desire to become involved in cryptocurrency to perpetrate large-scale frauds. Holding these criminal actors accountable and protecting the public is, and will remain, a priority of this Office.”
Mr. Peace expressed his appreciation to the New York Police Department, U.S. Customs and Border Protection, the U.S. Postal Inspection Service, Port Authority of New York and New Jersey Police, and Nassau County Sheriff’s Department.
“Aurelien Michel enticed investors with promises of capitalizing on the NFT trend, only to abandon the project after amassing nearly $3 million in what’s described as a ‘rug-pull scheme.’ The defendant, accused of misleading the Mutant Ape NFT community, claimed innocence and even labeled victims as ‘too toxic.’ However, these attempts to evade responsibility came to a conclusion with today’s plea,” stated Ivan J. Arvelo, Special Agent in Charge of HSI New York. “In the face of evolving investment landscapes, HSI remains vigilant, utilizing cutting-edge tools to safeguard individuals from unscrupulous actors and their attempts to exploit well-meaning investors.”
“While Michel purported to sell dream NFTs backed with rewards and benefits, he defrauded investors, turning their dream into a nightmare of deception and losses. There is no excusing this kind of greed, and today’s guilty plea brings Michel one step closer to realizing his own nightmare—behind bars,” said Thomas M. Fattorusso, Special Agent in Charge of IRS-CI New York.
According to court filings and facts presented during the plea proceeding, Michel and his co-conspirators marketed the NFTs to purchasers by falsely promising them numerous rewards and benefits designed to increase demand for, and the value of, their newly acquired NFTs. But Michel and his co-conspirators intentionally failed to deliver on these promises, diverting millions of dollars’ worth of proceeds for their personal benefit while continuing to represent that the benefits would be forthcoming.
The government’s case is being prosecuted by Assistant United States Attorneys Drew G. Rolle and Dylan A. Stern of the Office’s Business and Securities Fraud Section with assistance from Paralegal Specialist William Daniels.
If you believe that you have been a victim of this crime, please call the HSI Tip Line at 1-866-347-2423.
The Defendant:
AURELIEN MICHEL
Age: 25
Dubai, United Arab EmiratesE.D.N.Y. Docket No. 23-CR-418 (MKB)
New York Man Pleads Guilty to Producing Child Sexual Abuse MaterialRead the Press Release
NORFOLK, Va. – An Angola, New York, man pleaded guilty today to producing child sexual abuse material.
According to court documents, Donovan Chaplin, 23, was convicted in April 2022 in the Court for the County of Erie, New York, of sexual abuse in the first degree involving a victim less than eleven years old. In November 2022, while serving a period of probation for that offense, Chaplin began an online chat conversation with Jane Doe, a 15-year-old girl living in Franklin. Chaplin falsely told Jane Doe he was himself a minor and engaged in an online conversation with her for about two and a half months. Their conversation was highly sexually explicit, and Chaplin eventually persuaded Jane Doe to take and send him sexually explicit pictures of herself.
After Jane Doe’s family discovered and reported the chat to law enforcement, agents from the FBI executed a search warrant at Chaplin’s residence. Chaplin admitted to chatting with Jane Doe. A search warrant of Chaplin’s account on the chatting application revealed numerous sexually explicit chats with approximately 40 other purported minors as young as 13 years old between November 2022 and February 2023. Chaplin had requested of about 23 of those individuals to create and share sexually explicit images of themselves with him.
Chaplin is scheduled to be sentenced on March 22, 2024. He faces a mandatory minimum of 25 years in prison and a maximum penalty of 50 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea.
Assistant U.S. Attorney E. Rebecca Gantt is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
In 2021, EDVA launched “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness and educating the community about the prevalence of online sexual exploitation involving children and young adults. UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at [email protected].
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-110.
New Orleans Man Pleads Guilty to Mailing Threatening CommunicationRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on November 9, 2023, SHAUN CHAPMAN (“CHAPMAN”), age 38, pleaded guilty to mailing a threatening communication, in violation of Title 18, United States Code, Section 876(c).
According to court documents, CHAPMAN mailed a letter to the Robert Nixon Federal Courthouse in Philadelphia, Pennsylvania that contained threats to the President and Vice-President of the United States, Supreme Court justices, and Department of Justice employees. A U.S. Secret Service investigation revealed that the letter was mailed from the Orleans Justice Center where CHAPMAN was incarcerated on unrelated charges.
CHAPMAN faces a maximum term of ten (10) years imprisonment, a fine of up to $250,000, up to a three (3) year term of supervised release, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant U.S. Attorney Gregory M. Kennedy of the Violent Crime Unit is in charge of the prosecution.
Missoula meth trafficker sentenced to 11 years in prisonRead the Press Release
MISSOULA — A Missoula man who admitted to trafficking methamphetamine after law enforcement found the drug in a backpack he had discarded was sentenced on Monday to 11 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said today.
Robert Dean Spearson, 40, pleaded guilty in July to possession with intent to distribute meth.
U.S. District Judge Donald W. Molloy presided.
The government alleged in court documents that on Nov. 21, 2021, members of the Montana Violent Offenders Task Force attempted to arrest Spearson in Missoula. Spearson fled from officers and was found and arrested in an apartment. The apartment’s owner said Spearson has been in possession of a black backpack. Officers located the backpack and found approximately 77 grams of meth in separate baggies, a digital scale, empty small plastic baggies, a safe key, $660 cash, a laptop that listed Spearson as the user. An empty holster was attached to the outside of the backpack.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Missoula Police Department conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Minnesota Owner of Lighting Installation Business Pleads Guilty to Tax EvasionRead the Press Release
A Minnesota man pleaded guilty yesterday for attempting to evade his federal income taxes by submitting an incomplete bankruptcy filing.
According to court documents and statements made in court, from 2000 until 2023, Robert Schlosser, of Prior Lake, owned and operated a business that installs Christmas lighting, special event lighting and decoration displays for its customers. In 2018, Schlosser filed for bankruptcy and listed the IRS as a creditor for his unpaid federal income taxes. As part of the bankruptcy, Schlosser was required to sign and file, under penalty of perjury, a bankruptcy petition and schedules providing information regarding his assets, income and other financial affairs. Schlosser attempted to evade the payment of his delinquent taxes by filing false bankruptcy schedules that concealed assets to hinder IRS collection efforts. In total, Schlosser admitted that his conduct resulted in a tax loss to the IRS of $429,848.
Schlosser faces a maximum penalty of five years in prison. He also faces a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Thomas Flynn and Samuel Robins of the Tax Division are prosecuting the case, with assistance from Trial Attorney Colin Kreuziger of the U.S. Trustee Program.
Middlesex County Man Sentenced to 15 Months in Prison for Communicating Threats to Attack SynagogueRead the Press Release
CAMDEN, N.J. – A Middlesex County, New Jersey, man was sentenced today to 15 months in prison for transmitting via the internet a manifesto containing threats to attack a synagogue and Jewish people, U.S. Attorney Philip R. Sellinger announced.
Omar Alkattoul, 19, of Sayreville, New Jersey, previously pleaded guilty to an information charging him with one count of transmitting a threat in interstate and foreign commerce on or about Nov. 1, 2022. U.S. District Judge Christine P. O’Hearn imposed the sentence today in Camden federal court.
“This defendant admitted using social media to send a manifesto containing a threat to attack a synagogue based on his hatred of Jews. This prompted a state-wide alert and put the community on edge. No one should be targeted for violence or with acts of hate because of how they worship. Protecting our communities of faith and places of worship is at the heart of this office’s mission. The sentence that was imposed today holds this defendant accountable for his hateful words.”
U.S. Attorney Philip R. Sellinger
“Threatening someone's life because of who they are or what they believe is simply unacceptable in civilized society,” FBI -Newark Special Agent in Charge James E. Dennehy said. “Alkattoul admitted to breaking the laws we enforce to protect our communities from hate and threats of violence. Now more than ever, the FBI and our law enforcement partners need the public's help reporting anything they see, so the threats don't turn into physical attacks.”
According to documents filed in this case and statements made in court:
On Nov. 1, 2022, Alkattoul used a social media application to send an individual a link to a document entitled “When Swords Collide” and admitted to this individual that he wrote the document. He admitted targeting a synagogue. He stated in the document: “It’s in the context of an attack on Jews.” According to a second individual, Alkattoul also sent the document to at least five other people using another social media application.
In addition to the prison term, Judge O’Hearn sentenced Alkattoul to three years of supervised release.
U.S. Attorney Sellinger credited special agents and task force officers with the Newark FBI Joint Terrorism Task Force, under the direction of Special Agent-in-Charge Dennehy, with the investigation leading to today’s guilty plea. He also thanked agents of the FBI Field Office in Tampa, Florida, under the direction of Special Agent in Charge David Walker; the FBI Field Office in New York, under the direction of Assistant Director in Charge James Smith; and the FBI Washington Field Office, under the direction of Assistant Director in Charge David Sundberg; as well as the New Jersey Office of the Attorney General, under the direction of Attorney General Matthew J. Platkin; the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; and officers of the Sayreville Police Department, under the direction of Chief Daniel Plumacker.
The government is represented by Christopher Amore, Chief of the U.S. Attorney’s Office’s General Crimes Unit, and Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office’s National Security Unit, with assistance from the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
Mexican National Charged with Illegally Transporting Undocumented AliensRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Olidier Roblero-Perez (34, Mexico) has been arrested and charged by criminal complaint with transporting undocumented aliens for the purpose of furthering their illegal presence in the United States. If convicted, Roblero-Perez faces a maximum penalty of five years in federal prison.
According to the complaint, deputies from the St. Johns County Sheriff’s Office (SJSO) encountered Roblero-Perez at a motel in St. Augustine while investigating an incident in which Virjilio Aguilar-Mendez, an undocumented alien from Guatemala, violently struggled with officers who were attempting to arrest him, and which resulted in the death of an SJSO deputy from a medical issue. Aguilar-Mendez was later charged with aggravated manslaughter of an officer and resisting an officer with violence.
Investigators determined that Roblero-Perez had transported Aguilar-Mendez and two other undocumented aliens, both from Mexico, from southwest Florida to St. Johns County to work at a farm in the area. He also transported them between the motel and the farm each day. He also paid for their motel room with cash.
Homeland Security Investigations (HSI) later learned that Roblero-Perez and the two undocumented aliens from Mexico were staying at a motel in Moultrie, Georgia, and that Roblero-Perez had transported them there. Roblero-Perez transported the aliens between the motel and a farm each day for work, collected and distributed their pay in cash, and paid for their motel room with cash.
This case was investigated by Homeland Security Investigations (HSI) and the St. Johns County Sheriff’s Office, with assistance from the Nassau County Sheriff’s Office and United States Border Patrol. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to three months in federal prison.
Emmanuel Reyes-Jaimes, age 38, a citizen of Mexico illegally present in the United States and residing in Cambridge, Iowa, received the prison term after a September 21, 2023 guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Reyes-Jaimes admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Reyes-Jaimes was previously deported in November 2016. On August 7, 2023, immigration officials learned Reyes-Jaimes had illegally returned to the United States and found Reyes-Jaimes at the Benton County Jail where he was serving a state sentence.
Reyes-Jaimes was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Reyes-Jaimes was sentenced to 93 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Reyes-Jaimes is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-59.
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Meridian Man Sentenced to over 7 Years in Prison for Possession of a Firearm by Convicted FelonRead the Press Release
Jackson, Miss. – A Meridian man was sentenced to 87 months in prison for possession of a firearm by a convicted felon.
According to court documents, on July 15, 2022, agents from the East Mississippi Drug Task Force, utilized a confidential source to purchase approximately 13 grams of methamphetamine from Reginald Franklin, 53. After the controlled purchase, law enforcement executed a search warrant on Franklin’s residence and located four firearms, one of which was reported stolen, approximately 68 grams of methamphetamine, 308 dosage units of ecstasy, 4 grams of crack cocaine, and 35 grams of marijuana. Through the investigation, law enforcement determined that Franklin was a convicted felon having previously been convicted for aggravated assault. As a convicted felon, it is contrary to federal law for Franklin to possess any firearm.
U.S. Attorney Todd W. Gee and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
The East Mississippi Drug Task Force and the ATF investigated the case.
Assistant U.S. Attorney Adam T. Stuart prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Meridian Man Pleads Guilty to Armed RobberiesRead the Press Release
Jackson, Miss. - A Meridian man pled guilty to three counts of robbery and two counts of brandishing a firearm in furtherance of a crime of violence.
According to court documents, Matthew Byrd, 42, committed four armed robberies of local businesses across Mississippi, between April 20, 2022, and May 15, 2022. During each robbery, Byrd displayed a firearm to intimidate the clerk and steal merchandise and cash from the business. Through the investigation, law enforcement was able to determine that Byrd was a convicted felon, previously being convicted of Possession of Methamphetamine and Residential Burglary. As a convicted felon it is contrary to federal law for Byrd to possess any firearm.
Byrd is scheduled to be sentenced on February 13, 2024, and faces a maximum penalty of life in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
The Lauderdale County Sheriff’s Department, East Mississippi Drug Task Force, Meridian Police Department, Clinton Police Department, Newton County Sherriff’s Department, and the ATF investigated the case.
Assistant U.S. Attorney Adam T. Stuart is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Member of Catalytic Converter Theft Crew Pleads GuiltyRead the Press Release
BOSTON – A Springfield man pleaded guilty today in federal court in Boston to his role in a regional organized theft crew that stole catalytic converters from over 490 vehicles as well as from ATMs and jewelry stores.
Zachary Marshall, 25, pleaded guilty to conspiracy to transport stolen property in interstate commerce and interstate transportation of stolen property. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Feb. 7, 2024.
Marshall and six other men were arrested on April 12, 2023, and charged with offenses related to the theft, transportation and sale of stolen catalytic converters taken from over 490 vehicles during 2022 and 2023.
Catalytic converter theft has become a nationwide problem across a multitude of state, local, and federal jurisdictions due to the high-valued precious metals they contain – some of which are more valuable than gold, with black-market prices being more than $1,000 each in recent years. The theft of a vehicle's catalytic converter results in damage that renders the vehicle inoperable – both mechanically and legally under EPA regulations – until properly replaced.
Marshall was a member of an organized crew that allegedly stole catalytic converters from at least 492 vehicles across Massachusetts and New Hampshire in 2022 and 2023 alone. It is believed that a significant number of additional thefts have not been identified or were not ever reported to law enforcement, however. The crew was skilled and able to locate and cut away the catalytic converter from a vehicle within a minute in most instances – often utilizing battery operated power-tools, car jacks. It is alleged that, on numerous occasions, the defendants targeted more than 10 vehicles in a single night, with one night reporting thefts from 26 vehicles.
It is alleged that the crew was led by Rafael Davila, who engaged in catalytic converter thefts and burglaries on a full-time basis – committing thefts multiple nights per week for upwards of eight hours a night. Rafael Davila was allegedly responsible for the planning of and transportation to each targeted theft – using his vehicle, determining price values for stolen converters and purchasing needed materials. It is further alleged that he maintained meticulous notes accounting for the locations that he and his co-conspirators had targeted and the number of catalytic converters that had been stolen, including the makes and models and when they were dropped off.
Marshall participated in thefts of catalytic converters from 107 vehicles over the course of 10 separate instances between Jan. 19, 2023 and April 6, 2023 – most of which targeted vehicles in more than one municipality over the course of a single night.
Once in possession of the stolen catalytic converters, the crew would then sell them to Jose Torres, who would accumulate stolen catalytic converters from multiple theft crews and then in turn sell them to scrap dealers in the Northeast – transacting approximately $30,000 to $80,000 in stolen catalytic converters per week. In particular, Torres sold stolen catalytic converters to scrap dealers who have since been charged federally for interstate transportation of stolen property and money laundering in the District of Connecticut, the Eastern District of California and Northern District of Oklahoma.
Zachary Marshall also admitted to breaking into to a self-storage facility in Northborough, MA on February 2, 2023, with Rafael Davila. During this break-in, Davila and Marshall stole items from storage units, and stole a truck containing approximately $13,000 worth of Milwaukee brand power tools. A high-speed chase from law enforcement took place that evening reaching speeds upwards of 120 mph. Some of the stolen tools would later be recovered during a search of a storage unit controlled by Rafael Davila on April 12, 2023, as part of the takedown in this case.
Torres pleaded guilty to his role in the catalytic converter theft conspiracy on May 17, 2023 and is scheduled to be sentenced on Dec. 14, 2023. Alex Oyola pleaded guilty to the ATM and jewelry store burglaries on May 24, 2023 and will be sentenced at a later date. On March 13, 2023, Nicolas Davila pleaded guilty and is scheduled to be sentenced on Jan. 9, 2024. Santo Feliberty pleaded guilty to his role in the conspiracy on Oct. 19, 2023 and is scheduled to be sentenced on Jan. 31, 2023. Charges against Rafael Davila and Carlos Fonseca remain pending and they are presumed innocent until proven guilty.
The charge of conspiracy to transport stolen property in interstate commerce provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of interstate transportation of stolen property each provide for a sentence of up to 10 years, up to three years of supervised release and a fine of up to $250,000. The charge of conspiracy to commit bank theft provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of bank theft provides for a sentence of up to 10 years, up to three years of supervised release and a fine of up to $250,000. The charge of being a felon in possession of a firearm and ammunition provides for up to 10 years, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Kevin Gallagher, Director of Operations for the National Insurance Crime Bureau, Northeast Region made the announcement today. Valuable assistance was also provided by the United States Attorney’s Offices for the District of Connecticut, the Northern District of Oklahoma and the Eastern District of California; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the New England State Police Information Network (NESPIN). Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
Over 70 local police departments in Massachusetts, New Hampshire and Connecticut contributed to this investigation through the submission of their investigations of catalytic converter thefts in their jurisdiction. The Massachusetts Police Departments contributing to the investigation were Abington, Acton, Andover, Auburn, Bedford, Bellingham, Beverly, Billerica, Burlington, Bridgewater, Canton, Carver, Chelmsford, Concord, Cranston, East Hampton, Easton, Fitchburg, Framingham, Franklin, Gardner, Hampton, Hanover, Haverhill, Hingham, Holliston, Holyoke, Hudson, Ipswich, Lawrence, Leominster, Lynn, Malden, Mansfield, Medford, Marlborough, Methuen, Middleton, Milford, Millbury, Needham, Newton, Northborough, Norwell, Norwood, Peabody, Pembroke, Plymouth, Randolph, Rockland, Sharon, Shrewsbury, Springfield, Sterling, Sturbridge, Sudbury, Tyngsborough, Walpole, Waltham, Watertown, West Bridgewater, Weymouth, Wilmington, Woburn and Worcester. The New Hampshire Police Departments contributing to the investigation were Bow, Concord, Derry, Hooksett, Hudson, Londonderry, Manchester, Salem and Windham. The South Windsor and Windsor Connecticut Police Departments also contributed to the investigation.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mechanicsburg Man Charged for Threatening to Kill A United States CongressmanRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Lee Ingalls, Jr., age 61, of Mechanicsburg, Pennsylvania, was charged in a one count criminal complaint with the interstate transmission of threatening communications.
According to United States Attorney Gerard M. Karam, it is alleged that on November 6, 2023, Ingalls left two threatening voicemail messages on the main congressional office answering system in Washington, D.C. It is also alleged that in both voicemail messages Ingalls specifically threatened to kill a specifically identified United States Congressman. It was determined Ingalls made the calls from his cell phone while Ingalls was in Mechanicsburg.
Ingalls was arrested on November 10, 2023. Ingalls appeared before United States Magistrate Judge Daryl F. Bloom on November 13, 2023 and was ordered held in pretrial detention pending action by a federal grand jury.
The United States Capitol Police investigated the case and were assisted locally by the Fairview Township Police Department. Assistant United States Attorney William Behe is prosecuting the case.
Ingalls faces a maximum term of imprisonment of five years, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Manchester Man Pleads Guilty to Sexual Exploitation of MinorsRead the Press Release
CONCORD – A Manchester man pleaded guilty today in federal court to producing visual depictions of four different minor survivors engaged in sexually explicit conduct, U.S. Attorney Jane E. Young announces.
Chad Lawlor, 48 pleaded guilty to four counts of sexual exploitation of a minor. U.S. District Court Judge Landya McCafferty scheduled sentencing for February 29, 2024. Lawlor was charged on October 12, 2021.
Lawlor was identified during an online undercover investigation as being the administrator of an online chat group that was devoted to the exchange of child sexual abuse material (CSAM). Lawlor used the chat group to both send and receive images of CSAM with other users. Lawlor is a registered sex offender based on a 2005 Massachusetts conviction for indecent assault and battery on a person over 14.
In April 2021, federal agents seized and examined two cell phones belonging to Lawlor, one of which contained numerous videos Lawlor created while engaged in online video chats with minors. During the chats, Lawlor directed the minors to engage in sexually explicit conduct while livestreaming the video feed. Lawlor used the screen recording function of his cell phone to create videos of the minors engaged in sexually explicit conduct from the livestream video chats. Lawlor pled guilty to charges relating to four identified minor survivors ranging in age from 8 to 13 years old.
The charging statute provides a sentence of no greater than 30 years in prison, a minimum of 5 years of supervised release, a fine of up to $250,000, and other monetary assessments, including restitution. 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.
Homeland Security Investigations led the investigation. Valuable assistance was provided by the Nashua Police Department, the Manchester Police Department, the New Hampshire Internet Crimes Against Children Task Force, and the Hillsborough County Sheriff’s Department. Assistant U.S. Attorney Kasey Weiland is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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 https://www.justice.gov/psc.
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Manchester Man Pleads Guilty to Possessing with Intent to Distribute More Than 2 Pounds of CocaineRead the Press Release
CONCORD – A Manchester man pleaded guilty today in federal court to possessing with intent to distribute a kilogram of cocaine in New Hampshire, First Assistant Jay McCormack announces.
Michael Francis, 36, pleaded guilty to possessing with intent to distribute a controlled substance. U.S. District Court Judge Steven McAuliffe scheduled sentencing for February 20, 2024. The defendant was charged by superseding indictment on December 13, 2021.
On September 1, 2021, law enforcement conducted a search of the defendant’s vehicle and found a gift bag containing a brick of cocaine that weighed 1000.5 grams and $10,000 in cash. The defendant intended to distribute the cocaine for profit.
The charging statute provides a sentence of no less than 5 years and no greater than 40 years in prison, at least four years of supervised release, and a fine of no greater than $5,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorneys Aaron Gingrande, Charlie Rombeau, and Jarad Hodes prosecuted the case.
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Man Sentenced to Federal Prison for Illegal Possession of a Firearm after High-Speed Chase with Law EnforcementRead the Press Release
A man who fled from law enforcement with a loaded firearm in his vehicle was sentenced today to more than 8 years in federal prison.
Jacques Eugene Robinson, age 50, from Cedar Rapids, Iowa, received the prison term after a March 8, 2023 guilty plea to one count of possession of a firearm by a prohibited person. Robinson was previously convicted of Murder in the Second Degree in the Iowa District Court for Scott County on June 11, 1990.
Evidence at the plea and sentencing hearings showed that, on March 25, 2022, law enforcement stopped Robinson as he was driving. Before the traffic stop ended, Robinson sped away. During the following car chase, Robinson reached a speed of 107 miles per hour, and he ran two red lights. Officers were eventually able to stop Robinson’s vehicle and take him into custody. Robinson’s blood alcohol concentration was determined to be .128%. Officers located a loaded handgun inside the vehicle Robinson had been driving. Robinson later told officers that he carried a firearm daily.
Robinson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Robinson was sentenced to 100 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Robinson is being held in the United States Marshal’s custody until he can be transported to a federal 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 Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and investigated by the Cedar Rapids Police Department and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-60.
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Man Accused of Kidnapping Resulting in Death Dies Awaiting TrialRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Gerald Bennett, 63, from Detroit, Michigan, died in the hospital on November 13 due to medical complications while awaiting trial. Bennett was charged with (1) conspiracy to commit murder for hire resulting in death, (2) kidnapping resulting in death, (3) kidnapping of a minor victim, and (4) solicitation to commit a crime of violence. If convicted of count one or two, Bennett could have been sentenced to a mandatory sentence of life in prison. The U.S. Attorney’s Office is dismissing the pending case now that the defendant is deceased.
“The allegations in this case were heinous and I deeply regret we will never present the evidence against Mr. Bennett in open court,” said U.S. Attorney Mark Totten. “At best, our efforts can secure only a measure of justice. We can’t bring Mujey back. But the truth-telling role of a conviction matters. I am grateful for the investigators who worked for years to secure justice and my heart remains with her family as they mourn the loss of one they dearly loved.”
"I commend the dedicated men and women of the investigative and prosecutorial teams for their continued pursuance of justice for the victims and their families in this case," stated Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "While the defendant's case will not be brought before the court due to his untimely passing, the FBI, alongside our local and state law enforcement partners remain committed in using our collective resources to hold those individuals responsible who conspire or commit violent acts in our communities."
In 2017, a high-school student named Mujey Dumbuya accused Grand Rapids resident Quinn James of sexually assaulting her when she was 15 years old. Upon learning of the criminal complaint, James hired Bennett to help him kidnap and murder Dumbuya, who was then 16 years old. James and Bennett communicated for several weeks before abducting Dumbuya from a bus stop on January 24, 2018. Her body was found days later in a wooded area in Kalamazoo. James and Bennett were both charged in state court for her murder. James was convicted after trial and sentenced to life in prison without parole. Bennett, however, convinced the state court he was not competent to stand trial. In March 2022, Bennett’s state case was dismissed.
Federal and state investigators remained convinced that Bennett was competent and presented the case to the U.S. Attorney’s Office. In June 2022, Bennett was arrested on a federal criminal complaint that alleged Bennett worked with James to kidnap the 16-year-old girl who had accused James of sexually assaulting her. A federal grand jury reviewed evidence against Bennett in August of 2022 and returned an indictment formalizing the charge of kidnapping a minor.
Bennett was then transported to a special Federal Bureau of Prisons facility for a competency evaluation by a forensic psychologist. The evaluation report concluded that Bennett was not only competent but malingering, that is, faking his incompetency. While Bennett was in custody awaiting his competency hearing, he allegedly solicited another murder for hire in an effort to silence a key witness. Bennett also allegedly admitted to inmates in the jail that he was faking his incompetency. On April 18 of this year, U.S. Magistrate Judge Ray Kent reviewed the evaluation and ruled that Bennett was competent to stand trial.
Afterwards, a grand jury considered additional evidence and added charges accusing Bennett of conspiracy to commit murder for hire resulting in death and kidnapping resulting in death. The grand jury also included a fourth charge for solicitation to commit a crime of violence for Bennett’s efforts to hire someone to murder a witness in his case. Jury selection for trial was scheduled to begin on February 26, 2024.
On November 7, Bennett was admitted to the hospital for cancer treatment. The next day his health declined substantially and he was placed on life support. On November 13, Bennett died. Bennett was the sole defendant in the federal case and with his death, prosecution is no longer possible.
This case was prosecuted by Assistant U.S. Attorneys Daniel Mekaru and Austin Hakes. The investigation of Bennett was an inter-agency effort led by the Grand Rapids Police Department, Federal Bureau of Investigation, the Kalamazoo Department of Public Safety, and the Michigan State Police, with the assistance and cooperation of the Kent County Prosecutor’s Office.
Click here to view the Motion to Dismiss# # #
MEDIA NOTE: Previous press releases concerning this case are included below.
Further Charges Added Against Detroit Man Held in Murder-For-Hire PlanAmong Additional Charges, Defendant Allegedly Plotted to Kill a Witness Against Him
Alleged Kidnapper Competent to Stand Trial
Evidence Shows Defendant Faking Incompetency
Malachi Crockett Pleads Guilty to Carjacking and Federal Firearms OffenseRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Malachi Alan Crockett pled guilty to three counts of carjacking and aiding and abetting and one count of possession of a firearm in furtherance of a crime of violence. Crockett, 18, of Albuquerque, will remain in custody pending sentencing, which has not been scheduled.
In his plea agreement, Crockett admitted that on March 21, 2023, he and two juvenile accomplices committed three carjackings in Albuquerque. During each of the carjackings, Crockett was armed with a loaded pistol and possessed it in furtherance of the carjacking.
Crockett faces imprisonment of up to 15 years for each carjacking count and a consecutive term of up to life in prison for using, carrying and brandishing a firearm during and in relation to a crime of violence.
The FBI Albuquerque Field Office investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorneys Matthew T. Nelson and Natasha Moghadam are prosecuting the case.
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Lee’s Summit Business Owner Indicted for CARES Act Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Lee’s Summit, Mo., business owner has been indicted by a federal grand jury for spending more than $900,000 in federal COVID-19 business relief funds on personal real estate purchases and a Chevrolet Camaro.
Sammy Adam Joseph, 47, was charged in an eight-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, Nov. 8. That indictment was unsealed and made public today upon Joseph’s arrest and initial court appearance.
Joseph remains in federal custody pending a detention hearing, which has not yet been scheduled. According to the government’s motion for detention, Joseph is a flight risk because he owns a condominium in Lebanon and has traveled to Lebanon three times in 2023. Joseph also poses a risk to the community because he has been identified in social media photos with assault weapons.
Joseph is the owner of Adams & Joseph, Inc., which operates two gas stations in the Kansas City, Mo., metropolitan area. According to the indictment, his business received nearly $1.9 million under the Economic Injury Disaster Loan (EIDL) program, which was part of the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The purpose of the CARES Act was to provide emergency financial assistance due to the economic impact caused by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration to provide Economic Injury Disaster Loans to eligible small businesses that experienced substantial financial disruption due to the economic impact of the COVID-19 pandemic.
According to the indictment, Adams & Joseph received a total of $1,869,900 in EIDL disbursements between June 2020 and November 2021.
The indictment alleges that Joseph fraudulently used at least $900,000 of the EIDL proceeds for his own personal benefit by using EIDL money to purchase a residence in Lee’s Summit, parcels of land in Kansas City, Mo., and Lee’s Summit, a building in Grandview, Mo., and a blue 2019 Chevrolet Camaro.
Joseph is charged with six counts of theft of government property, which are related to EIDL proceeds he allegedly spent on unauthorized purchases. Joseph is charged with two counts of money laundering, which are related to monetary transactions of criminally derived property.
The indictment also contains forfeiture allegations, which would require Joseph to forfeit to the government any property derived from the proceeds of the alleged offenses, including a money judgment of at least $948,120 and three parcels of real estate in Kansas City, Mo., Lee’s Summit, and Grandview.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by Homeland Security Investigations.
Pandemic Response Accountability Committee Task Force
The Pandemic Response Accountability Committee Task Force was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program (PPP), and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.
Leader in Operation Ghost Busted, other defendants sentenced to prison after pleading guilty in drug trafficking conspiracyRead the Press Release
BRUNSWICK, GA: An incarcerated leader in a massive, gang-related drug trafficking conspiracy has been sentenced to life in federal prison after pleading guilty to charges brought in the largest-ever indictment in the Southern District of Georgia.
James D. NeSmith, a/k/a “DG,” 26, an inmate serving life in prison for murder at Telfair State Prison, was sentenced to a consecutive term of life in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, 50 Grams or More of Methamphetamine, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. NeSmith’s federal sentence would begin if he is released from state custody, and U.S. District Court Judge Lisa Godbey Wood ordered that he would be housed at a facility no less than 500 miles from his Brunswick residence.
“James NeSmith’s sentence and others in this case represent significant milestones in this effort to dismantle a major drug trafficking operation in south Georgia,” said U.S. Attorney Steinberg. “With our law enforcement partners, we will continue to disrupt traffickers as they distribute deadly, addictive drugs and endanger the safety of our communities and prison facilities.”
Operation Ghost Busted, unsealed in January as USA v. Alvarez et al., charged 76 defendants with involvement in a drug trafficking conspiracy – linked to the white supremacist Ghost Face Gangsters – that distributed large amounts of high-grade methamphetamine, along with fentanyl, heroin, and alprazolam in the greater Glynn County area. Nearly 70 of the defendants have been sentenced or await sentencing after entering guilty pleas in U.S. District Court, while the remainder await further court proceedings and are considered innocent unless and until proven guilty.
For more than two years, investigators from the FBI Coastal Georgia Violent Gang Task Force, the Glynn County Police Department, the Brunswick Police Department, the Glynn County Sheriff's Office, and the Camden County Sheriff's Office collaborated with multiple federal, state and local agencies to identify a sprawling drug trafficking network operating in multiple south Georgia counties. The network operated inside and outside Georgia prisons, coordinated by members of the Ghost Face Gangsters working with affiliates of other criminal street gangs including the Aryan Brotherhood, Bloods, and Gangster Disciples. NeSmith is a member of the Gangster Disciples.
Key figures adjudicated in Operation Ghost Busted include:
- Desiree M. Briley, 26, of McRae-Helena, Ga., sentenced to 18 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, Methamphetamine. Briley was a guard at Telfair State Prison where she helped move contraband into the facility at NeSmith’s direction.
- John E. Harrison, 26, of Brunswick, sentenced to 190 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute 5 Grams or More of Methamphetamine. Harrison acted with others as a courier and drug distributor in the conspiracy.
- Charles W. Walrath, a/k/a “Boomer,” 52, of Brunswick, sentenced to 144 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine and Fentanyl. Walrath was identified as a mid-level drug distributor in the conspiracy.
- Clinton Taylor, 34, of Brunswick, sentenced to 105 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Taylor, who illegally possessed an SKS assault-style rifle, has two prior convictions for illegal firearms possession, and faces state charges related to a machete attack on a Brunswick resident.
- Marissa D. Davis, 32, of Brunswick, sentenced to 97 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine and Fentanyl. Davis worked with Walrath and others as an illegal drug distributor.
- Wendell McClain, 35, of Brunswick, sentenced to 96 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.
- Rachael P. Byrd, a/k/a “Byrd is the Word,” 26, of Brunswick, awaits sentencing after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, 50 Grams or More of Methamphetamine. Byrd served as a leader in the drug trafficking organization, relaying instructions from her boyfriend James NeSmith and distributing multiple kilos of methamphetamine to distributors and dozens of street-level dealers, and delivering contraband to Briley for delivery to NeSmith in prison.
NeSmith’s mother and sister also are being prosecuted for participation in the conspiracy. Authorities also are seeking a fugitive, David D. Young, a/k/a “Khaos,” of Hortense, Ga., on multiple federal charges.
“Gangs that operate out of our prison systems not only bring drugs and violence into prison facilities – they also breed drug-fueled violence in our communities,” said Will Clarke, Supervisory Senior Resident Agent of FBI Atlanta’s Savannah Office. “We are committed to dismantling violent gangs like the Ghost Face Gangsters and holding their members and those who conspire with them accountable for criminal conduct.”
“This action serves as a textbook example of the impact that can be achieved when we blend our investigative resources with our state and local partners as we continue to aggressively dismantle major drug trafficking that plagues our communities,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “ATF remains committed to targeting violent offenders and dismantling their criminal organizations.”
“Illegal drugs are dangerous and threaten the safety of Georgia communities,” said Georgia Bureau of Investigation Director Chris Hosey. “The GBI is committed to working with our local and federal partners to investigate the horrific crimes connected to criminal street gangs.”
Operation Ghost Busted was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Agencies involved in the investigation include the FBI Coastal Georgia Violent Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the Georgia Bureau of Investigation; the Georgia Department of Corrections; the Georgia Department of Community Supervision; the Glynn County Police Department; the Brunswick Police Department; the Glynn County Sheriff’s Office; and sheriff’s offices from Pierce, Camden, Wayne, Treutlen, McIntosh, Toombs, Telfair, Dodge, and Ware counties. The case is being prosecuted for the United States by Assistant U.S. Attorneys Jennifer J. Kirkland and Criminal Division Deputy Chief E. Greg Gilluly Jr.
Leader of Georgian Crime Syndicate and Associates Charged with Extortion OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging VAZHA GABADADZE, a/k/a “Natan Yusupov,” KAKHA KATSADZE, TEIMURAZ TAVBERIDZE, a/k/a “Tava,” and DAVIT TIKARADZE, a/k/a “Dato,” with extortion offenses. GABADADZE, KATSADZE, TAVBERIDZE, and TIKARADZE were arrested today and will be presented this afternoon before U.S. Magistrate Judge Robert W. Lehrburger.
U.S. Attorney Damian Williams said: “As alleged in the indictment, Gabadadze, a leader within an international criminal syndicate, and his associates threatened their victim with physical violence in order to extract money. Thanks to the dedication of the FBI and the prosecutors of this Office, all four defendants now face federal charges.”
FBI Assistant Director in Charge James Smith said: “Forcing a victim to pay money using intimidation and threats of violence is illegal and not how business is conducted in our city. This illicit behavior is exactly what these defendants are alleged to have conspired to carry out over several months. The FBI will not stand idly by while organized crime members take part in violence and extortion, instead we will hold them accountable in the criminal justice system.”
As alleged in the Indictment:[1]
From about September 2022 through about August 2023, GABADADZE, KATSADZE, TAVBERIDZE, and TIKARADZE engaged in a scheme of extortion. GABADADZE is a leader within an organized criminal group. He holds the title of “vor v zakone” or “vor,” which are Russian phrases translated roughly as “Thief-in-Law” or “Thief,” and which refer to an order of elite criminals from the former Soviet Union who receive tribute from other criminals, offer protection, and use their recognized status as “vor” to adjudicate disputes among lower-level criminals. As part of the organized criminal group, GABADADZE and his associates, KATSADZE, TAVBERIDZE, and TIKARADZE, induced their victim to make monetary payments through the use of threatened force and fear.
* * *
GABADADZE, 41, KATSADZE, 45, TAVBERIDZE, 54 and TIKARADZE, 53, all of Kutaisi, Georgia, are each charged with one count of conspiracy to commit extortion and one count of extortion. Each count carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI. Mr. Williams also thanked U.S. Customs and Border Protection and the New York City Police Department for their assistance in the investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises and General Crimes Units. Assistant U.S. Attorneys Anden Chow and Chelsea Scism are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitutes only allegations, and every fact described herein should be treated as an allegation.
Helena felon sentenced to three years in prison for illegally possessing firearms while employed at pawn shopRead the Press Release
GREAT FALLS — A Helena man who admitted to illegally possessing firearms while on state supervision for a felony conviction and working at a pawn shop was sentenced today to three years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Brandon Wade Kurns, 29, pleaded guilty in June to prohibited person in possession of a firearm and ammunition.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that from about June through July in 2021, Kurns, a convicted felon on state supervision, was a customer and briefly employed at Modern Pawn in Helena. In both capacities, he possessed firearms and ammunition. An investigation determined that Kurns handled firearms and ammunition inventory and possessed at least eight or more firearms. Kurns was convicted of felony criminal endangerment in 2020 in Lewis and Clark County and was prohibited from possessing firearms. A related investigation of Modern Pawn by the Bureau of Alcohol, Tobacco, Firearms and Explosives led to the convictions of other defendants on various crimes.
The U.S. Attorney’s Office prosecuted the case. The ATF and Montana Probation and Parole conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Hartford Man Admits Trafficking Cocaine and HeroinRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that HIDELBRANDO QUINONES, also known as “Gordo,” 48, of Hartford, pleaded guilty today before U.S. District Judge Sarala V. Nagala in Hartford to a narcotics distribution offense.
According to court documents and statements made in court, in February 2023, members of the Drug Enforcement Administration’s Hartford Task Force made two controlled purchases of cocaine from Quinones. Quinones was arrested on March 1, 2023. On that date, a court-authorized search of his Standish Street residence revealed approximately 200 grams of cocaine, 20 grams of crack cocaine, and 100 grams of heroin, and various items used to process and package narcotics for street sale.
Quinones pleaded guilty to one count of possession with intent to distribute heroin and cocaine, an offense that carries a maximum term of imprisonment of 20 years. Judge Nagala scheduled sentencing for February 6, 2024.
Quinones is released on a $50,000 bond pending sentencing.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, and Windsor Locks Police Departments. This case is being prosecuted by Assistant U.S. Attorney Brendan J. Keefe.
Franklin County Man Sentenced to 280 Months for the Receipt of Child PornographyRead the Press Release
FRANKFORT, Ky. – A Frankfort man, Richard Benson, 49, was sentenced on Tuesday, to 280 months in federal prison, by U.S. District Court Judge Gregory Van Tatenhove, following his conviction for receipt of child pornography. Benson faced an enhanced penalty because he was previously convicted of a qualifying sexual offense involving a minor.
According to Benson’s plea agreement, law enforcement received information that Benson was uploading child pornography images utilizing his Google storage account. On April 18, 2022, law enforcement interviewed Benson and he admitted to receiving, accessing, and viewing child pornography. A search warrant revealed Benson’s devices contained at least 17 videos of minors engaged in sexually explicit conduct. Benson further admitted that he was previously convicted in Wisconsin of one count of Sexual Assault 2nd degree and one count of Sexual Assault 3rd degree, in 1995.
Under federal law, Benson must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 25 years. Benson was additionally ordered to pay $17,500 in restitution.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); and Phillip J. Burnett, Commissioner of the Kentucky State Police (KSP), jointly announced the sentence.
The investigation was conducted by HSI and KSP. Assistant U.S. Attorney Erin Roth is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Founder of Medical Charity in St. Joseph Pleads Guilty to $8 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – The founder of a so-called Christian health care sharing ministry in St. Joseph, Mo., pleaded guilty in federal court today to leading an $8 million wire fraud conspiracy that cheated hundreds of members, and to making false statements on a personal tax return.
Craig Anthony Reynolds, 61, of St. Joseph, waived his right to a grand jury and pleaded guilty before U.S. District Judge Greg Kays to a federal information that charges him with one count of conspiracy to commit wire fraud and one count of making false statements on a tax return.
Reynolds incorporated and ran Medical Cost Sharing, a tax-exempt organization, as its president and chief executive officer from 2014 through December 2022.
By pleading guilty today, Reynolds admitted that he and his co-conspirators used false and fraudulent promises to market Medical Cost Sharing as a “Health Care Sharing Ministry” to defraud hundreds of “ministry members.” Reynolds and his co-conspirators collected more than $8 million in member “contributions,” yet paid only 3.1 percent in health care claims so that they could personally profit and take most of the members’ contributions for themselves.
The co-conspirators included an executive vice president and chairman of Medical Cost Sharing, who ran the organization with Reynolds. This co-conspirator, identified in court documents as “CC1,” has not been charged.
Reynolds marketed Medical Cost Sharing as a “Christian Health Care Sharing Ministry” through insurance brokers, radio stations, social media, and its website. Medical Cost Sharing sales materials promoted its 501(c)(3) tax-exempt designation, advertising that it was different from for profit health insurance. The Medical Cost Sharing website claimed, “while we are not an insurance company, many think of us as a Christian Health Insurance, or Christian Medical Insurance because, like conventional insurance plans, we help you pay your healthcare costs. We help you protect your family. But unlike these corporate, profit based plans, we are a healthcare sharing ministry … your healthcare costs are shared with other Christians enrolled in our medical sharing plans.”
Medical Cost Sharing promised its member that if they paid monthly “contributions,” Medical Cost Sharing would pay claims after the members’ “personal responsibility” (deductible) was met.
In reality, Reynolds admitted today, Medical Cost Sharing rarely paid members’ health care claims. Sometimes Medical Cost Sharing would pay a part of a claim if the member filed a complaint with their state attorney general and/or hired an attorney to represent them against Medical Cost Sharing.
Non-profit organizations file IRS Forms 990, which are accessible to the public. Medical Cost Sharing filed false Forms 990 for tax years 2016 through 2019 that understated Reynolds’s and CC1’s compensation. Medical Cost Sharing filed no tax returns for tax years 2020 – 2022.
According to today’s plea agreement, Medical Cost Sharing collected more than $8,035,544 in member contributions from 2015 through 2022. During that time, Medical Cost Sharing paid no more than $245,982 in claims, which constitutes only 3.1 percent of the member contributions collected. The $245,982 includes payments to members who filed complaints with their state attorney general and/or hired legal counsel to represent them against Medical Cost Sharing.
Medical Cost Sharing paid no claims at all from Feb. 22, 2021, through December 2022, although it collected a total of nearly $1.2 million in dues in 2021 and 2022.
Reynolds admitted that he and CC1 pocketed at least $5,168,268 from the member contributions from December 2015 through December 2022. Reynolds and CC1 took at least 64 percent of total member contributions for their personal profit.
On Dec. 13, 2022, federal agents served search warrants on the Medical Cost Sharing business location and Reynolds’s residence and seized property generated from Medical Cost Sharing proceeds. Medical Cost Sharing continued to try to collect membership dues after the search and seizure warrants. On Dec. 27, 2022, the court entered a temporary restraining order that prohibited Medical Cost Sharing, Reynolds, and CC1 from continuing to perpetrate a fraudulent scheme and from processing Medical Cost Sharing member payments, among other actions.
In addition to the wire fraud conspiracy, Reynolds also pleaded guilty to making false statements on a personal tax return. Reynolds admitted that he filed a return that claimed he had no taxable income in 2019. Reynolds actually received at least $354,292 in taxable income in 2019.
Under the terms of today’s plea agreement, Reynolds must forfeit his gain from Medical Cost Sharing as well as any property obtained from his criminal activity, including two residences in St. Joseph, the contents of his bank account, and a 2022 Harley Davidson motorcycle. He must also pay $167,799 in restitution to the government.
Under federal statutes, Reynolds is subject to a sentence of up to 23 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Kathleen D. Mahoney, Patrick Daly, and John Constance. It was investigated by the FBI and IRS-Criminal Investigation.
FBI Website for Victims of Medical Cost Sharing Fraud
Those who believe they are victims of this fraud and wish to receive restitution for any losses suffered as a result may provide their information through the MCS Victim Information Page that has been established by the FBI.
https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/mcs-victim-information-page
Fort Peck Tribal corrections officer admits deprivation of rights in assault of inmateRead the Press Release
GREAT FALLS — A corrections officer who worked at the Fort Peck Tribe’s detention center admitted today to a civil rights violation for assaulting an inmate, U.S. Attorney Jesse Laslovich said.
Devin Gray Hawk, 20, of Poplar, pleaded guilty to an information charging him with deprivation of rights. Gray Hawk faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for April 3, 2024. Gray Hawk was released pending further proceedings.
In court documents, the government alleged that on April 8, 2022, the Fort Peck Tribe’s Department of Law and Justice contacted the FBI about an assault that day of an inmate, identified as John Doe, by a corrections officer, identified as Gray Hawk, at the Tribe’s Adult Detention Center. While John Doe was shackled and not resisting, Gray Hawk fired his Taser at John Doe and then, while John Doe was sitting on the floor, kicked him in the head, causing John Doe’s head to hit an open metal food tray slot on the cell door. John Doe was treated for injuries at Poplar Community Hospital and returned to the detention center. The government alleged that Gray Hawk, while acting under color of law as a corrections officer, willfully deprived John Doe of the right protected by the Constitution and laws of the United States to be free from cruel and unusual punishment.
Assistant U.S. Attorney Paul D. Vestal for the District of Montana and Trial Attorney Eric N. Peffley, of the Civil Rights Division’s Criminal Section, are prosecuting the case.
The FBI conducted the investigation.
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Fort Myers Man Sentenced to Federal Prison for Unlawfully Possessing Loaded Firearm as A Convicted FelonRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Steven Dewayne Barnes, Jr. (26, Fort Myers) to 10 years and 1 month in federal prison for possessing a firearm as a previously convicted felon and possessing a firearm with an obliterated serial number. The court also ordered Barnes to forfeit the firearm and ammunition possessed during the offense. Barnes had been found guilty following a bench trial on July 12, 2023.
According to court records, during the afternoon of November 14, 2022, officers from the Fort Myers Police Department encountered Barnes walking along Washington Avenue in Fort Myers and engaged him in conversation. During their conversation, the officers made serval observations which led them to believe that Barnes was concealing a weapon on his person. As a result, the officers conducted a pat down of Barnes and found a loaded Smith and Wesson handgun concealed under his clothing and tucked into his waistband. An inspection of the firearm revealed that its serial number had been scratched out. As a convicted felon who had previously served prison time, Barnes is prohibited from possessing firearms or ammunition under federal law. Forensic ballistics analysis later linked the firearm retrieved from Barnes to two recent drive-by shootings in Fort Myers.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fort Myers Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Simon R. Eth.
Former San Jose State University Director of Sports Medicine Sentenced for Sexually Abusing Female Student AthletesRead the Press Release
A former San Jose State University (SJSU) Director of Sports Medicine was sentenced today in the Northern District of California to 24 months in prison, one year of supervised release, a $15,000 fine and restitution to be determined at a later date for sexually abusing female student-athletes under the guise of providing medical treatment.
As part of the plea agreement, Scott Shaw admitted that, between 2017 and 2020, he violated the civil rights of four students who played on women’s athletics teams by touching their breasts and buttocks without their consent and without a legitimate medical purpose.
“This sentence should send a clear message that public school officials who exploit their positions of authority to sexually abuse and harass students will face serious consequences for their actions,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will not tolerate violations of civil rights committed under the guise of legitimate medical treatment by those in positions of power and trust.”
“Scott Shaw was entrusted to care for athletes in the California State University system,” said First Assistant U.S. Attorney Patrick Robbins for the Northern District of California. “Instead, he used his power over female athletes to violate their civil rights by sexually groping them without their consent and without any medical justification. Such criminal assaults on college athletes will be investigated and prosecuted; anyone abusing their power over student athletes in this way should expect to spend time in prison for doing so.”
“A patient necessarily places enormous trust in a healthcare provider; that relationship is privileged and inviolable for good reason,” said Special Agent In Charge Robert Tripp of the FBI San Francisco Field Office. “Shaw’s violation of that relationship is reprehensible, as was reflected in his sentence. I commend the student athletes for their moral courage in coming forward to challenge Shaw. Their bravery prevented Shaw from committing further harm to others, and civil rights violations will continue to be a top priority for the FBI.”
According to court documents, from 2008 until August 2020, Shaw served as the Director of Sports Medicine and head athletic trainer at SJSU, a public university that is part of the California State University system, and was an employee of the State of California. His duties included treating injuries sustained by student-athletes at SJSU.
Additionally, Shaw admitted that he engaged in all the conduct described above on SJSU’s campus, and in his capacity as an SJSU athletic trainer, and the student-athletes only allowed him to have physical contact with them because of his status as an SJSU athletic trainer. Shaw also admitted that he touched each of the student-athletes as described above without any legitimate diagnostic or treatment purpose and without seeking or securing their consent in advance. Shaw further admitted that his conduct was not the result of mistake, carelessness or accident.
The FBI San Francisco Field Office investigated the case.
Assistant U.S. Attorney Michael Pitman for the Northern District of California and Trial Attorney MarLa Duncan and Attorney Advisor Sarah Howard of the Civil Rights Division’s Criminal Section are prosecuting the case.
Former San Jose State University Director of Sports Medicine Sentenced for Groping Female Student AthletesRead the Press Release
SAN JOSE – Scott Shaw, a former San Jose State University (SJSU) Director of Sports Medicine, was sentenced today to serve 24 months in prison for unlawfully touching female student-athletes under the guise of providing medical treatment. The sentence was handed down by the Honorable Beth Labson Freeman, United States District Judge for the Northern District of California.
“Today’s sentence sends a clear message that public school officials who exploit their positions of authority to sexually abuse and harass students will face serious consequences for their actions,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will not tolerate violations of civil rights committed under the guise of legitimate medical treatment by those in positions of power and trust.”
“Scott Shaw was entrusted to care for athletes in the California State University system. Instead, he used his power over female athletes to violate their civil rights by sexually groping them without their consent and without any medical justification,” said First Assistant U.S. Attorney Patrick Robbins for the Northern District of California. “Such criminal assaults on college athletes will be investigated and prosecuted; anyone abusing their power over student athletes in this way should expect to spend time in prison for doing so.”
“A patient necessarily places enormous trust in a healthcare provider; that relationship is privileged and inviolable for good reason,” said FBI Special Agent In Charge Robert Tripp. “Shaw’s violation of that relationship is reprehensible, as was reflected in his sentence. I commend the student athletes for their moral courage in coming forward to challenge Shaw. Their bravery prevented Shaw from committing further harm to others, and civil rights violations will continue to be a top priority for the FBI.”
Shaw pleaded guilty to the charges on August 15, 2023. As part of the plea agreement, Shaw admitted that, between 2017 and 2020, he violated the civil rights of four students who played on women’s athletics teams by touching their breasts and buttocks without their consent and without a legitimate medical purpose.
According to court documents, from 2008 until August 2020, Shaw served as the Director of Sports Medicine and head athletic trainer at SJSU, a public university that is part of the California State University system, and was an employee of the State of California. His duties included treating injuries sustained by student-athletes at SJSU.
Shaw admitted that he engaged in all the conduct described above on SJSU’s campus, and in his capacity as an SJSU athletic trainer. Shaw admitted that female student-athletes allowed him to have physical contact with them only because of his status as an SJSU athletic trainer. Shaw further acknowledged that female student-athletes sought treatment from him because they were in pain, seeking relief, and wanted to continue participating in SJSU Athletics. Further, the student-athletes trusted him because he was an experienced athletic trainer. Shaw also admitted that he inappropriately touched each of the student-athletes as described above without any legitimate diagnostic or treatment purpose and without seeking or securing their consent in advance. Shaw further admitted that his conduct was not the result of mistake, carelessness, or accident.
In sum, Shaw pleaded guilty to two counts of deprivation of rights under color of law, in violation of 18 U.S.C. 242. In addition to the prison term, Judge Freeman ordered Shaw to serve one year of supervised release, to begin after he has served his prison term, and to pay a $15,000 fine. Judge Freeman also scheduled a hearing to take place on February 6, 2024, to determine issues related to restitution.
Judge Freeman ordered Shaw to surrender on or before March 6, 2024, to begin serving his prison term. Assistant U.S. Attorney Michael Pitman for the Northern District of California and Trial Attorney MarLa Duncan and Attorney Advisor Sarah Howard of the Civil Rights Division’s Criminal Section are prosecuting the case. This case was investigated by the FBI.
Former Oil City Resident Sentenced to 96 Months in Prison for Conviction of Robbery and Firearm OffensesRead the Press Release
ERIE, Pa. - A former resident of Oil City, Pennsylvania, plead guilty and has been sentenced to 96 months in prison on his conviction of Hobbs Act robbery and violating federal firearms laws, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Mark Daniel Fenstermaker, 39.
According to information presented to the court, on or about October 14, 2021, Fenstermaker committed a robbery of Spanky’s Tobacco World in Venango County, Pennsylvania and used or carried a firearm which was brandished in furtherance of the robbery.
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.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, the Oil City Police Department, and Venango County District Attorney’s Office for the investigation leading to the successful prosecution of Fenstermaker.
Former Navy Civilian Employee and Defense Contractor Indicted in Bribery SchemeRead the Press Release
NEWS RELEASE SUMMARY – November 14, 2023
SAN DIEGO – A federal grand jury has indicted a former civilian employee of the Naval Information Warfare Center in San Diego and the owner of a Virginia-based defense contractor for a bribery scheme.
According to the indictment, Phillip Flores, owner of Intellipeak Solutions, bribed James Soriano, the former employee, with free dinners at San Diego restaurants including De Medici Cucina, the University Club and Bluewater Boathouse Grill and Ruth’s Chris in Virginia as well as tickets to the 2018 World Series and the 2019 Super Bowl.
In return, Soriano allowed Flores to draft procurement documents for various contracts, including contracts for which Flores and Intellipeak ostensibly were in competition with others. Soriano also steered millions of dollars in contracts to Intellipeak that Flores subcontracted to others, including contractors ineligible to receive the contracts.
To conceal their activity, Soriano falsified government paperwork and Flores falsely affirmed that Intellipeak had completed 51 percent of the work on awarded contracts when the company had not. On October 29, 2019, in a recorded call, Flores coached Soriano to be “very careful” about how he answered questions from federal agents and to falsely say contractors drafting government documents was “market research.”
“Our nation’s military depends upon the honesty of its civilian workforce and the contractors who provide invaluable services to the men and women who help defend our country,” said U.S. Attorney Tara K. McGrath. “Those who choose greed and corruption breach that sacred trust.”
“The announced indictment is a critical first step in holding all three parties accountable for their alleged criminal efforts to enrich themselves financially by subverting the integrity of the government’s acquisition process through the improper awarding or promise of awarding lucrative contracts,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS remains committed to working jointly with the United States Attorney’s Office and our law enforcement partners to investigate and deter public corruption within the Department of Defense.”
“Bribery and procurement fraud within the Department of the Navy threatens warfighter safety and perpetuates unfair contracting practices that negatively affect honest businesses,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS and our partners remain committed to exposing those who abuse the DON procurement process for personal gain.”
“The indictment alleges that Mr. Soriano and Mr. Flores put national security at risk by actively trying to skirt the government contract process that exists to ensure our warfighters are equipped to fight and win in a complex environment,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “CI is committed to working with our fellow law enforcement partners to root out corrupt activities by following the money to help protect our heroes in uniform.”
“Using a position of public trust as a means to fraudulently grant access to federal programs for personal gain will not be tolerated,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Our office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
DEFENDANTS Case Number 23cr2282-TWR
James Soriano Age: 63 Las Vegas, NV
Philip Flores Age: 52 Nashville, TN
Intellipeak Solutions, Inc. Virginia
RELATED CASE Case Number 23cr2192-TWR
Dawnell Parker Age: 54 Athens, AL
SUMMARY OF CHARGES
Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison; $250,000 fine
Bribery – Title 18, U.S.C., Section 201
Maximum penalty: Fifteen years in prison; $250,000 fine for an individual or $500,000 for an organization, or three times the monetary equivalent of the thing of value, whichever is greater.
AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Small Business Administration – Office of Inspector General
Internal Revenue Service Criminal Investigation
Department of Health and Human Services – Office of Inspector General
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.