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13 November 2023
Princeton Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BLUEFIELD, W.Va. – Malachi Damonte Cooper, 22, of Princeton, pleaded guilty today to possession with intent to distribute 40 grams or more of fentanyl and 50 grams or more of methamphetamine.
According to court documents and statements made in court, on December 8, 2022, law enforcement officers executed a search warrant at a Bluefield residence where Cooper was staying. Officers found 734 grams of methamphetamine, approximately 130 grams of fentanyl, digital scales, a money counter, a Micro Draco 7.62mm semi-automatic pistol, a Glock 9mm pistol loaded with a 30-round magazine, and over $23,000. Cooper admitted that he possessed the controlled substances and intended to distribute them.
Cooper is scheduled to be sentenced on March 4, 2024, and faces a mandatory minimum of five years and up to 40 years in prison, at least four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Southern Regional Drug and Violent Crime Task Force. The task force consists of members of the West Virginia State Police, the Bluefield Police Department, the Princeton Police Department, the Mercer County Sheriff’s Department, the McDowell County Sheriff’s Department, and the Wyoming County Sheriff’s Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:23-cr-119.
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Operation Smoke and Mirrors Update: Charleston Woman Sentenced to Prison for Role in Methamphetamine Trafficking OrganizationRead the Press Release
CHARLESTON, W.Va. – Latesha Lashae Nappier, 30, of Charleston, was sentenced today to one year and one day in prison, to be followed by three years of supervised release, for conspiracy to distribute methamphetamine. Nappier admitted to her role in a drug trafficking organization (DTO) that operated in the Charleston area.
According to court documents and statements made in court, Nappier admitted to conspiring with others to distribute quantities of methamphetamine, cocaine and fentanyl between November 2022 and March 22, 2023. Nappier lived with one of her co-defendants in Charleston during that time. Nappier admitted that this co-defendant had her sell the controlled substances to individuals while he was at work and collect the payments from the sales. Nappier would later give the money to this co-defendant.
On January 30, 2023, Nappier’s co-defendant directed her by phone to sell methamphetamine to a female customer. Nappier admitted to selling approximately 10.5 grams of methamphetamine to the customer as instructed at her residence in exchange for $160.
Nappier is among 32 individuals indicted as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 400 pounds of methamphetamine as well as 40 pounds of cocaine, 3 pounds of fentanyl, 19 firearms and $935,000 in cash.
Nappier and 21 other defendants have pleaded guilty. Indictments against the other defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-31.
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Ohio Woman Sentenced to Prison for Federal Fraud CrimesRead the Press Release
HUNTINGTON, W.Va. – Laura Danielle Jackson, 33, of Gallipolis, Ohio, was sentenced today to three years and two months in prison, to be followed by three years of supervised release, and ordered to pay $26,074.13 in restitution for two counts of mail fraud and one count of aggravated identity theft.
According to court documents and statements made in court, on or about September 17, 2018, Jackson was working at a South Charleston, West Virginia, human resources business when she obtained the personal identification information of an individual who applied for employment there. Between September 18, 2018, and September 27, 2018, Jackson applied for and received two separate credit cards with this individual’s stolen information and had the fraudulent credit cards mailed to her residence in Hurricane, West Virginia, where she was living at the time. Jackson admitted that she activated the cards and purchased $10,626.70 in goods, merchandise and other items of value with them.
Jackson further admitted to committing additional fraudulent acts both before and after her employment with the South Charleston business. Jackson obtained at least $15,447.43 through these additional fraudulent acts.
On or about January 8, 2018, Jackson began working at a Milton, West Virginia, coal company and had access to a company credit card that was to be used solely for business-related expenses. Jackson admitted to making $4,451.88 in personal purchases, buying items including an Apple iPad, a Nintendo Switch and an Apple iWatch, and paying for an April 2018 family vacation to St. Charles, Missouri, with the company credit card. Jackson further admitted to lying about the vacation to the coal company. Jackson told her employer she had been unable to attend work because of a medical emergency, and Jackson provided a forged medical record to support her lie. The coal company fired Jackson in June 2018.
In October 2018, Jackson was hired by a St. Albans, West Virginia, insurance company as a human resources generalist. Jackson admitted that she used her position to access the personal identification information of at least five insurance company employees and attempted to apply for credit cards in their names. On or about December 5, 2018, Jackson received a credit card at her Hurricane residence that she had applied for in the name of an insurance company employee without the employee’s permission or authorization. Jackson admitted to buying $2,878.55 worth of goods and merchandise with the credit card.
After the insurance company learned of Jackson’s arrest for defrauding the Milton coal company, Jackson falsely told the insurance company that she had been wrongly accused. Jackson provided the insurance company with forged documents that purported to show that the court cases against her had been dismissed and that she had received a settlement from the coal company because of false accusations against her. The insurance company fired Jackson on February 15, 2019.
On or about January 13, 2020, a Cross Lanes, West Virginia, tax firm hired Jackson to perform accounting, bookkeeping, payroll and tax-related services for its clients. Jackson admitted that she accessed the payroll records for one tax firm client and added a fake employee to the client’s payroll. Jackson used her ex-husband’s Social Security number without his permission or authorization to create the fake employee. On October 16, 2020, the client deposited the fake employee’s paycheck in the amount of $1,067 into Jackson’s bank account.
Jackson further admitted to defrauding a church that was another client of the tax firm. Beginning in September 2020 through December 2020, Jackson wrote at least $7,050 worth of checks payable from the church to herself and cashed them at branches of a bank in Kanawha County, West Virginia. Jackson manipulated the church’s bookkeeping information to conceal her fraud.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service, the South Charleston Police Department, the Putnam County Sheriff’s Department and the West Virginia State Police.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Ryan Blackwell and Holly Wilson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-16.
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New Orleans Man Sentenced for Weapon and Drug ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on November 8, 2023, JUSTIN MORGAN, age 26, a resident of Orleans Parish, was sentenced by U.S. District Court Judge Lance M. Africk to 97 months imprisonment, 5 years of supervised release, and a $300 mandatory special assessment fee after previously pleading guilty to as to three counts of a superseding indictment.
Count 1 charged MORGAN with possession with the intent to distribute fentanyl, cocaine, and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and (b)(1)(d). Count 2 charged MORGAN with possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). Count 3 charged MORGAN with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, on February 10, 2022, Jefferson Parish Sheriff’s Office (“JPSO”) conducted a narcotics investigation in the Metairie Heights Apartment complex in Metairie, LA. Based on their observations, officers stopped a black Acura in which MORGAN and a co-defendant were riding. Subsequently, the JPSO obtained arrest warrants for both MORGAN and a co-defendant due to the discovery of narcotics and firearms that were located inside of MORGAN’s vehicle.
On March 25, 2022, JPSO officers arrested MORGAN and located a gun case in the trunk of his vehicle. The serial number on the gun case matched the serial number of the gun found in the rear seat of MORGAN’s vehicle on February 10, 2022. The firearm was also swabbed for DNA. The analysis concluded that MORGAN’s DNA was present on the firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit.
New Orleans Man Pleads Guilty to False Statements on an Individual Tax ReturnRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that CHRISTOPHER COBURN (“COBURN”), age 51, of New Orleans, pled guilty to a bill of information charging him with making false statements on an individual tax return, in violation of Title 26, United States Code, Section 7206(1).
According to court records, COBURN under-reported his tax preparation business income on his individual tax returns by approximately $104,156.06 for tax years 2016 through 2018. This underreporting caused a loss of approximately $29,781 to the Internal Revenue Service. COBURN faces a maximum sentence of three (3) years of imprisonment, up to one (1) year of supervised release, a fine of up to $100,000, and a mandatory special assessment fee of $100. COBURN agreed both to pay $29,781 in restitution to the Internal Revenue Service and to be permanently enjoined from preparing federal tax returns for others. United States District Judge Darrel James Papillion set sentencing in this matter for March 12, 2023.
The U.S. Attorney’s Office acknowledges the work of the Internal Revenue Service Criminal Investigations on this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni of the Financial Crimes Unit.
Nampa Man Sentenced to 24 Months for Selling over $4.4 Million in Unapproved Steroid-Like DrugsRead the Press Release
BOISE – Michael Terry Little, 52, of Nampa, was sentenced to 24 months in federal prison for introduction of unapproved new drugs in interstate commerce, U.S. Attorney Josh Hurwit announced today.
According to court records, Little manufactured and sold Selective Androgen Receptor Modulators (SARMs) at a business in Nampa. There, he processed the bulk ingredients he imported from China—encapsulating, bottling, and preparing them for shipment. Little primarily sold SARMs products via a website under the name SARMTECH. Between March 2018 and January 2022, Little sold at least $4,499,197.46 of SARMs products.
SARMs are synthetic chemicals designed to mimic the effects of testosterone and other anabolic steroids. SARMs are “new drugs” under the Food, Drug and Cosmetic Act (FDCA). Little knew the SARMs products were not FDA approved. To avoid government seizures of SARMs shipped to other countries, Little offered a stealth shipping option for an additional fee that intentionally mispackaged and falsely declared SARMs shipments as vitamins and supplements.
“I commend the investigators and prosecutor who exposed this illegal activity and brought the perpetrator to justice,” said U.S. Attorney Hurwit. “Law enforcement will continue to pursue those who put the public at risk by circumventing the law to sell unapproved drugs.”
“Drugs that are produced and distributed outside the FDA’s oversight present the risk of harm to the public health,” said Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations Los Angeles Field Office. “We remain committed to pursuing and bringing to justice those who attempt to subvert the regulatory functions of the FDA by distributing unapproved products.”
“This investigation illustrates the dangers of circumventing U.S. regulations with unapproved drugs and chemicals coming from China, where the safety of such chemicals can often not be confirmed,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI and our partners are committed to keeping all forms of unapproved products off our streets, especially those that risk public health and safety.”
U.S. Attorney Hurwit credited the cooperative efforts of the Food and Drug Administration Office of Criminal Investigations, Homeland Security Investigations, and the U.S. Department of Commerce Bureau of Industry and Security Office of Export Enforcement, which led to the charges. Assistant U.S. Attorney Darci Crane prosecuted the case.
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Mexican Mafia Associate Sentenced to 10 Years in PrisonRead the Press Release
NEWS RELEASE SUMMARY – November 13, 2023
SAN DIEGO – Juan Castro of San Diego was sentenced today in federal court to 10 years in prison and 10 years of supervised release for selling 109 grams of methamphetamine to a cooperating individual.
A government memorandum submitted for Castro’s sentencing described him as a high-ranking member of the San Ysidro (or “Sidro”) street gang and an associate of the Mexican Mafia. Castro oversaw day-to-day operations for Sidro which included collecting payments in exchange for allowing others to commit crimes in the San Ysidro area. The payments, or taxes, were then distributed to high-ranking Mexican Mafia members. In sentencing Castro, U.S. District Judge Larry Alan Burns called him a “hand puppet for the Mexican Mafia.”
Castro was apprehended after a long-term investigation by the FBI’s Violent Crimes Task Force and Gang Group.
DEFENDANT Case Number 23-cr-00371-LAB
Juan Castro Age: 38 San Diego, CA
SUMMARY OF CHARGES
Distribution of Methamphetamine – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Forty years in prison, with a mandatory minimum of five years, and $5 million fine
AGENCIES
Federal Bureau of Investigation – Violent Crimes Task Force – Gang Group (VCTF-GG), which currently includes investigators from the following agencies:
- Federal Bureau of Investigation
- San Diego Police Department
- Homeland Security Investigations
- Bureau of Alcohol, Tobacco, Firearms and Explosives
- California Department of Corrections
- San Diego County Sheriff’s Department
- Chula Vista Police Department
- National City Police Department
Although not currently part of VCTF-GG, during the investigation of this case, VCTF-GG also included investigators from the following:
- Bureau of Prisons
- San Diego District Attorney’s Office of Investigations
Mercer County Man Sentenced to 30 Years in Prison for Child Exploitation CrimeRead the Press Release
BLUEFIELD, W.Va. – Eric Shawn Phillips, 43, of Princeton, was sentenced today to 30 years in prison, to be followed by a lifetime of supervised release, and ordered to pay $7,200 in restitution for enticement of a minor. Phillips must also register as a sex offender.
According to court documents and statements made in court, from on or about April 19, 2021, to on or about February 17, 2022, Phillips persuaded, induced, enticed and coerced a minor female to engage in sexual activity with him. Phillips admitted that his criminal conduct included sending numerous sexually explicit messages to the minor female via text messaging and social media messaging apps.
“The sentence imposed today case reflects the horrific circumstances of this case and the truly despicable acts of this defendant,” said United States Attorney Will Thompson. “I commend the investigative work of the Mercer County Sheriff’s Department and the excellent coordination with the Mercer County Prosecuting Attorney’s Office.”
Phillips has related charges pending in Mercer County Circuit Court, where co-defendant Amber Nicole Phillips has pleaded guilty to being a parent, guardian, custodian or person in a position of trust allowing the sexual abuse of a child. Mercer County Prosecuting Attorney Brian K. Cochran also commended the work of the Mercer County Sheriff’s Department.
“We have a great working relationship with the United States Attorney’s Office and appreciate all of their assistance in helping us protect our Mercer County kids from sexual predators,” Cochran said.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorneys Julie M. White and Alexander A. Redmon prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:22-cr-194.
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McDowell County Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
BLUEFIELD, W.Va. – Myron Dwayne Brown, also known as “Mylo,” 44, of Welch, was sentenced today to one year in prison, to be followed by three years of supervised release, for distribution of fentanyl.
According to court documents and statements made in court, on February 22, 2022, Brown sold a substance containing fentanyl to a confidential informant at a Havaco residence in McDowell County. Brown admitted to that transaction and further admitted to selling controlled substances at the Havaco residence on December 29, 2021, and February 28, 2022. Brown was aided and abetted by another individual during the December 29, 2021, transaction and the controlled substance sold was confirmed by the West Virginia State Police Forensic Laboratory to contain butonitazene, a federal Schedule I controlled substance.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Southern Regional Drug and Violent Crime Task Force. The task force consists of members of the West Virginia State Police, the Bluefield Police Department, the Princeton Police Department, the Mercer County Sheriff’s Department, the McDowell County Sheriff’s Department, and the Wyoming County Sheriff’s Department.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Andrew D. Isabell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:23-cr-35.
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Maryland Man Found Guilty of Felony Bail Reform Act ViolationsRead the Press Release
WASHINGTON – Ranjith Keerikkattil, 35, formerly of Catonsville, Md., was found guilty by a jury for committing two felony violations of the Bail Reform Act by failing to appear in court on two occasions following a 2018 guilty jury verdict for stalking a co-worker, announced U.S. Attorney Matthew M. Graves.
Keerikkattil was found guilty of the stalking charge on July 9, 2018, following a jury trial in the Superior Court of the District of Columbia. The Honorable Robert A. Salerno released Keerikkattil following the verdict, pending sentencing. The judge ordered him to appear the next morning to have a GPS monitoring device installed. However, he failed to appear, and fled the United States, instead, ending up in Australia where he remained a fugitive for over four years. A grand jury subsequently indicted him on July 11, 2018, for a felony charge of violating the Bail Reform Act. The grand jury returned a superseding indictment on March 1, 2023, charging an additional violation of the Bail Reform Act for failing to return as ordered for his sentencing on September 14, 2018.
The Honorable Heidi Pasichow continued to hold Keerikkattil without bail pending his sentencing hearing on January 3, 2024.
According to the government’s evidence at trial, the criminal conduct began in May 2015, while Keerikkattil was a senior consultant at a consulting firm in Rosslyn, Va. The victim, who resided at the time in the District of Columbia, had begun her first job out of college in 2015, as a business technology analyst for the firm. Keerikkattil was her first mentor on her first project. After the victim performed countless evening and weekend hours on the project, Keerikkattil told her that he only brought her onto the project to get close to her and that he was merely giving her busy work. He ignored her wishes to keep their relationship strictly professional and continued to pursue her. After she repeatedly tried to resolve the matter herself, she reported Keerikkattil on June 1, 2015, to her human resources counselor.
Keerikkattil was fired on June 19, 2015, for not being forthcoming about his conduct, which was captured on texts between the two, during the firm’s internal investigation of the matter. He blamed the victim for his termination and then began a stalking campaign in retaliation. His stalking acts included publishing false allegations about the victim on the internet and through mass e-mails to the victim and former company employees in order to seriously frighten and defame her. When ignored, he escalated his actions. Almost two months after being fired, he sat in a café that was frequented by company employees, including the victim. He was able to obtain eye contact with the victim on one occasion inside this café, frightening her even more. The victim’s attorney notified Keerikkattil, instructing him not to have any further contact with her, but he continued to text her statements like, “Every morning I wake up thinking about you and go to bed thinking about you.”
With the victim continuing to ignore him, Keerikkattil decided to take a plane almost 3,000 miles to Seattle and then rent a car and travel an additional three hours to pay an unannounced visit to the victim’s parents in a remote suburb of Portland, Ore. On Oct. 24, 2015, he knocked on the door to the victim’s childhood home, which was at the bottom of a long driveway, and asked her father for directions to the nearby parks. It took a moment for the father to piece things together. Once he was able to figure out whom the defendant was, he slammed and locked the door and called 911. Keerikkattil texted the victim shortly thereafter, “Was nice meeting your dad today.” An arrest warrant was obtained shortly thereafter, and Keerikkattil was arrested on Dec. 19, 2015, and charged with stalking.
This case was investigated by the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. It was prosecuted by Assistant U.S. Attorneys John G. Giovannelli and Rashmika Nedungadi.
Manhattan Fentanyl and Methamphetamine Trafficker Convicted of Drug Trafficking, Conspiracy, and Firearms OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict on November 9, 2023, against MOUNIR MRABET on four counts in a Superseding Indictment, including charges of narcotics conspiracy, narcotics trafficking, and a firearms offense. MRABET will be sentenced at a later date by U.S. District Judge Jed S. Rakoff, who presided over the trial.
U.S. Attorney Damian Williams said: “The defendant was a prolific methamphetamine and fentanyl trafficker who received these dangerous drugs in the mail and sold them in wholesale quantities to other drug dealers in the heart of Manhattan. He also used a gun to protect his drug enterprise. His conviction should serve as a message to anyone who profits from fueling the methamphetamine and opioid crisis that continues to devastate our city and country: this Office is committed to prosecuting those responsible to the fullest extent of the law.”
According to the evidence presented at trial:
From about July 2022 to about January 5, 2023, MOUNIR MRABET coordinated with suppliers in Mexico and California to receive boxes of crystal methamphetamine and fentanyl in the mail. He then worked with co-conspirators to distribute wholesale quantities of these drugs to other drug dealers in New York City.
On January 5, 2023, a search warrant was executed on the defendant’s Manhattan apartment after he was recorded selling drugs to an undercover detective, including fake oxycodone pills laced with fentanyl. The search recovered approximately 24 pounds of methamphetamine, most of it pure, and half a pound of fentanyl powder. At trial, text messages, photographs, and video evidence established that the defendant regularly supplied numerous drug dealers with bags of drugs, often in pound quantities, and that he also used a firearm and threats to protect and promote his drug operations.
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MRABET, 40, of New York, New York, was convicted of (i) one count of conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl; (ii) two counts of distribution and possession with intent to distribute methamphetamine and fentanyl; and (iii) one count of use, carrying, and possession of a firearm in connection with, and in furtherance of, the narcotics conspiracy. The charges carry a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum penalties 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; Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York; the Department of Homeland Security, Homeland Security Investigations; and the Drug Enforcement Administration. Mr. Williams also thanked the U.S. Attorney’s Office for the Southern District of California for their assistance in this investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Jane Y. Chong, Edward C. Robinson, Jr., and Jun Xiang, with the assistance of Paralegal Specialist Alex Frenchman, are in charge of the prosecution.
Man Sentenced to 10 Years in Prison for Beating Ex-Girlfriend with 15-Pound DumbbellRead the Press Release
WASHINGTON – Nicholas Batts, 33, of Georgetown, Texas, was sentenced on November 9, 2023 to a ten-year prison term for beating his ex-girlfriend in the face and head with a 15-pound dumbbell, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Batts pleaded guilty in September 2023, in the Superior Court of the District of Columbia, to one count of Aggravated Assault While Armed. The plea, which was contingent upon the Court’s approval, called for a sentence between 7.5 years and 10 years of incarceration. The Honorable Rainey Brandt accepted the plea and sentenced the defendant to 10 years of incarceration, followed by five years of supervised release.
According to the government’s evidence, on December 9, 2022, at approximately 5:00 AM, Batts bludgeoned his ex-girlfriend in the face with a 15-pound metal dumbbell. When officers arrived on scene, the defendant stated that he “snapped” and hit her with the weight. The victim was found in the defendant’s bedroom, lying unconscious on the floor suffering from multiple blunt force trauma wounds.
This case was investigated by the Metropolitan Police Department. It was prosecuted by Assistant U.S. Attorneys Yasmin Emrani and Brian Yang, of the Sex Offense and Domestic Violence Section of the U.S. Attorney’s Office.
Long Island Man Pleads Guilty to Conspiring to Distribute Fentanyl That Contributed to Two Overdose DeathsRead the Press Release
Earlier today, in federal court in Central Islip, Charles Carter, also known as “Chase,” pleaded guilty to conspiring to distribute more than 40 grams of fentanyl. As part of his plea, Carter admitted that fentanyl that he sold contributed to the drug overdose deaths of two victims (“Victim-1” and “Victim-2”) in 2020 and 2021. Carter also admitted that in, 2021, he sold more than 43 grams of fentanyl to an undercover officer. The plea proceeding was held before United States District Gary R. Brown. As part of his plea agreement, Carter forfeited approximately $3,200 in seized narcotics sales proceeds and a 2009 Jeep Patriot that he used to facilitate narcotics sales. When sentenced, Carter faces five to 40 years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Patrick J. Ryder, Commissioner of the Nassau County Police Department (NCPD), and, William Whitton, Chief of Police, Glen Cove Police Department (GCPD), announced the guilty plea.
“Carter’s fentanyl sales contributed to the overdose deaths of a man and a woman, which only added to pain and anguish caused by an opioid epidemic that has harmed so many on Long Island,” stated United States Attorney Peace. “The defendant’s guilty plea today is the result of the relentless efforts by this Office and our law enforcement partners to prosecute traffickers dealing lethal drugs for profit and bring justice for the victims and families devastated by the scourge of fentanyl.”
“During the COVID pandemic, when the world was focused on saving lives and the public’s health, Carter was making plans to sell ‘the good stuff’ which ended lives and fueled the fentanyl crisis. This plea exemplifies law enforcement’s efforts to bring to justice those causing the most harm to our communities,” stated DEA Special Agent-in-Charge Tarentino.
“Defendant Carter knowingly sold narcotics laced with fentanyl for months which contributed to the premature deaths of a man and woman. With this plea, the defendant will receive a sentence that fits this crime. All of this would not be possible without the exemplary work from numerous law enforcement agencies and their investigators,” stated NCPD Commissioner Ryder.
“With drug overdoses rising at an alarming rate the Glen Cove Police Department will continue to make it a priority to identify and arrest those selling drugs in our community,” stated GCPD Chief of Police Whitton.
Between August 2020 and February 2021, Carter sold more than 40 grams of fentanyl to two overdose victims and an undercover GCPD detective. The investigation revealed that on August 6, 2020, a 23-year-old individual (Victim-1) died of a drug-related overdose at her residence in Glen Cove, Long Island. Cellular telephone analysis and additional investigation, showed that the fentanyl that Victim-1 used was purchased from Carter about two days before Victim-1’s death and that Victim-1 had drug-sale-related communications with Carter. On February 5, 2021, a 40-year-old individual (Victim-2) died of a drug-related overdose at his residence in Farmingdale, Long Island. A search of Victim-2’s phone revealed text messages between Carter and Victim-2, which related to Victim-2’s purchase of fentanyl, shortly before and in the months preceding his overdose death. For example, on January 21, 2021, Carter wrote text messages to Victim-2, stating “im.(sic) around and I got the good stuff[.] Do u (sic) need to see me..??” Autopsies performed on both victims revealed traces of fentanyl in their bodies. Additionally, Carter repeatedly sold fentanyl to the undercover GCPD detective in doses that could have been lethal if consumed, including approximately 43 grams of fentanyl in January 2021.
According to the Centers for Disease Control and Prevention (CDC) and the Department of Justice, in 2019, nearly 71,000 people died from drug overdoses, making it a leading cause of injury-related death in the United States. The increase in overdose deaths has been driven in large part by fentanyl, a drug that has been described as 50 to 100 times more potent than morphine. In 2019, over 14,000 people died in the United States from a drug overdose involving heroin. From 2013 to 2019, the synthetic opioid death rate increased by more than 1,000 percent. Of those deaths, over 70% involved a prescription or illicit opioid. Among New York State residents, the number of overdose deaths involving any opioid increased each year between 2010 and 2017, with an overall increase of 200.2 percent from 1,074 in 2010 to 3,224 in 2017, according to the New York State Health Department.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King and Madeline O’Connor are in charge of the prosecution, with assistance from Paralegal Specialist Samantha Schroder and Legal Assistant Janelle Robinson.
The Defendant:
CHARLES CARTER (also known as “Chase”)
Age: 34
Amityville, New YorkE.D.N.Y. Docket No. 21-CR-88 (S-1) (GRB)
Local Drug Distributor Sentenced to Five Years in Prison for Organizing the Sale of CocaineRead the Press Release
TUCSON, Ariz. – Elias Sambrano, 33, of Tucson, was sentenced last week by United States District Judge Scott H. Rash to 60 months in prison, followed by 48 months supervised release. Sambrano pleaded guilty on April 26, 2023, to Conspiracy to Possess with Intent to Distribute Cocaine and Possession with Intent to Distribute Cocaine.
Sambrano organized and attempted to organize sales of cocaine and methamphetamine. Sambrano confirmed with interested parties that he had high-quality cocaine for sale, discussed pricing and purity levels of drugs with others, and knowingly and intentionally coordinated the sale of approximately one kilogram of cocaine for $32,500 to an out-of-state purchaser on November 2, 2020.
The Drug Enforcement Administration in Sierra Vista, Arizona conducted the investigation in this case. Assistant U.S. Attorney Michael R. Lizano, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: 21-CR-02281-SHR
RELEASE NUMBER: 2023-175_Sambrano# # #
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.Jamaican National Sentenced for Role in Fraudulent Sweepstakes Scheme That Targeted Elderly VictimsRead the Press Release
SCRANTON – The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that a Jamaican national was sentenced on November 9, 2023, in federal court in Scranton, Pennsylvania, to 192 months in prison for his role in a fraudulent sweepstakes scheme that targeted elderly victims in the United States.
Damone Oakley, 41, of St. James Parish, Jamaica, was extradited to the United States in 2022 and pleaded guilty in July 2023 to two counts of mail and two counts of wire fraud.
From at least 2010 through 2019, Oakley participated in a fraudulent sweepstakes scheme that targeted elderly and vulnerable victims. Oakley’s victims received mailings, text messages or phone calls in which they were falsely told that they had won millions of dollars and luxury vehicles in a sweepstakes, but first needed to pay taxes and fees in order to claim their winnings. Oakley used phony names during the scheme, including “Officer Alex Logan” and “Officer Stan Valentine,” and instructed his victims on how to send their money (and to whom the funds should be sent). His victims were located throughout the United States, and used wire transfers, direct bank deposits, the U.S. Postal Service and private commercial mail carriers to send money directly to Oakley as well as to individuals in the United States and elsewhere who served as intermediaries and transmitted the money to Oakley. In addition to sending cash or wire transfers, Oakley’s victims were directed to purchase electronics, jewelry and clothing, which were sent to mail forwarding services in Florida, and then on to Oakley in Jamaica. The victims never received any “winnings.” Oakley’s victims lost hundreds of thousands of dollars during the course of the scheme.
“This sentence reflects our office’s commitment to protecting the most vulnerable members of our society and punishing those who engage in this type of behavior,” said U.S. Attorney Gerard M. Karam, Middle District of Pennsylvania. “Working together with our skilled and dedicated law enforcement partners, Oakley was held accountable for his crimes.”
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Through our National Elder Fraud Hotline, we identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable consumers, who often can least afford to sustain financial losses.”
“There was a time when scammers operating beyond our borders felt they could operate with impunity. Those days are gone,” said Inspector in Charge Eric Shen, of the U.S. Postal Inspection Services (USPIS) Criminal Investigations Group. “Postal inspectors track down these scammers no matter where they are. And with our Department of Justice partners’ extradition powers, scammers are brought to the United States to face the music. In this case, it’s to the tune of 192 months in prison.”
Senior Litigation Counsel Linda I. Marks of the Civil Division's Consumer Protection Branch and Assistant U.S. Attorney Christian Haugsby for the Middle District of Pennsylvania prosecuted the case. USPIS investigated the case.
The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Oakley.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Middle District of Pennsylvania, visit www.justice.gov/usao-mdpa. Information about the Justice Department’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
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Inmate Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Corey Michael Perkins, 34, an inmate, was sentenced today to three years and 11 months in prison, to be followed by three years of supervised release, for conspiracy to distribute suboxone and methamphetamine.
According to court documents and statements made in court, on October 6, 2022, Perkins was an inmate at the Western Regional Jail in Barboursville when he spoke to Judy Ann Goodman, an individual outside the jail, during recorded phone calls about getting a package of suboxone and methamphetamine into the jail. Perkins admitted that he told Goodman how to prepare the package and arranged for her to deliver it to Bryanna Danielle Kern, a kitchen employee at the jail. Perkins further admitted that he arranged for Kern to be paid to smuggle the package into the jail, and that he intended to distribute the suboxone and methamphetamine. The package was intercepted at the jail before it could be transported inside.
Goodman, also known as Judy Ann Eplion, 32, of Chesapeake, Ohio, was sentenced to two months in prison, to be followed by three years of supervised release, on September 5, 2023, after pleading guilty to conspiracy to distribute suboxone and methamphetamine. Kern was sentenced to three years of federal probation, including three months of home detention, on October 17, 2023, after pleading guilty to conspiracy to distribute suboxone.
In an earlier case, Perkins pleaded guilty to conspiracy to distribute suboxone, methamphetamine, and fentanyl. In that case, Perkins admitted to coordinating with multiple individuals to get drugs into the Western Regional Jail from November 2020 to December 2020. Perkins was sentenced to 11 years and eight months in prison in that case on August 22, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the investigations section of the West Virginia Division of Corrections and Rehabilitation (WVDCR).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Ryan A. Keefe and Courtney L. Finney prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-220.
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Huntington Man Sentenced to Prison Federal Drug Crime and Violating Supervised ReleaseRead the Press Release
HUNTINGTON, W.Va. – Jeremy Adam Bartram, 31, of Huntington, was sentenced today to nine years in prison, to be followed by three years of supervised release, for possession with intent to deliver methamphetamine and violating his supervised release.
According to court documents and statements made in court, on April 30, 2023, law enforcement officers conducted a traffic stop of a vehicle driven by Bartram in Huntington. Officers searched Bartram’s vehicle and arrested him. Bartram admitted that when he was taken to the Huntington Police Department, a bag containing approximately 172 grams of methamphetamine fell out of his shorts as he got out of the police cruiser.
Officers later searched Bartram in a holding cell and found approximately 10.4 grams of fentanyl hidden in his person. Bartram admitted that he intended to sell the methamphetamine and the fentanyl.
At the time of this offense, Bartram was serving a term of federal supervised release after pleading guilty to being a felon in possession of a firearm in United States District Court for the Southern District of West Virginia on September 19, 2019. Today’s prison sentence includes two years for committing a crime while on supervised release.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 3:23-cr-86 and 3:19-cr-182.
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Gary Man Sentenced to 51 Months in PrisonRead the Press Release
HAMMOND- Larry D. Carter III, 30 years old, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to possessing an unregistered machinegun, announced United States Attorney Clifford D. Johnson.
Carter was sentenced to 51 months in prison followed by 1 year of supervised release.
According to documents in the case, on October 18, 2022, law enforcement responded to a call of a domestic battery and determined Carter had an outstanding arrest warrant. From Carter’s possession, law enforcement recovered a loaded semi-automatic pistol with an extended magazine and a machinegun conversion device attached to it. The machinegun conversion device made the pistol capable of firing multiple shots with a single pull of the trigger. The machinegun was not registered to him in the National Firearm Registration and Transfer record, making his possession of the firearm illegal. Additionally, Carter’s criminal history revealed he had three felony convictions, including a 2018 conviction for trafficking in stolen weapons, and as such, he was prohibited from possessing the firearm.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force and the Gary Police Department. This case was prosecuted by Assistant United States Attorney Eamonn P. Sheehan.
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.
Four Bay Area Real Estate Professionals Charged in Years-Long Mortgage Fraud SchemeRead the Press Release
SAN FRANCISCO - A federal grand jury has indicted Tjoman Buditaslim (a/k/a “Joe Lim”), Travis Holasek, Jose Alfonso Tellez, and Jose De Jesus Martinez, with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft in connection with a years-long mortgage fraud scheme, announced United States Attorney Ismael J. Ramsey and Special Agent in Charge Herminia Neblina of the Federal Housing Finance Agency – Office of Inspector General.
According to the indictment, filed November 7, 2023, and unsealed yesterday, between May 2019 and August 23, 2023, Buditaslim, 51; Holasek, 51; Tellez, 26; and Martinez, 58, obtained more than $55 million in residential mortgage loans for home buyers in northern California by creating fraudulent documents that they submitted to residential mortgage origination companies. The fraudulent documents were used to qualify buyers for residential mortgage loans in connection with the fraud scheme. The defendants profited from the alleged mortgage fraud scheme by taking loan origination commissions, real estate broker commission payments from escrow, and direct payments from potential buyers who wrote checks directly to the defendants for submitting loan applications to mortgage origination companies on their behalf.
The indictment describes numerous details of the alleged scheme. For example, the indictment alleges that the defendants carried out their mortgage fraud scheme by assisting potential buyers with locating residential properties to purchase, creating false divorce decree documents and child support checks purportedly payable to the potential buyer from an individual the buyer had never been married to or even met, creating false and fabricated bank statements showing falsely inflated bank account balances for potential buyers, submitting loan applications containing materially false information about buyers’ income to a mortgage origination company, and collecting proceeds of home sales by directing payments from escrow to defendants and their associates.
As alleged in the indictment, the defendants did not inform the potential buyers that the fraudulent documents—including divorce papers, child support checks, and bank statements— were being fabricated. The defendants knew that based on the buyers’ true income and bank statement balances, the potential buyers would not have qualified for the mortgages for which the defendants applied. The indictment also describes how defendants also allegedly prepared and assisted in preparing false Uniform Residential Loan Applications (URLAs) for potential buyers. The URLAs contained false information about the loan applicants’ income and assets. Further, the loan application packages the defendants submitted also allegedly contained false and fabricated supporting documentation, including altered bank statements, fabricated divorce documents, and fabricated child support checks.
As a result of the alleged fraud scheme, a mortgage origination company (identified in the indictment as Mortgage Origination Company 1) was required to repurchase loans originated as a result of fraud that had been sold to a federally-chartered home mortgage purchaser, causing losses to the company of approximately $8,162,515.82.
Buditaslim was arrested on August 23, 2023, in Daly City, California, pursuant to a criminal complaint. He made his initial appearance in U.S. District Court for the Northern District of California on August 24, 2023. Martinez was arrested on November 7, 2023, and made his initial appearance in federal court on November 8, 2023. Tellez made his initial appearance in federal court on November 8, 2023. An initial appearance in federal court in San Francisco has not yet been scheduled for Holasek.
In sum, the Indictment charges each defendant with the following offenses:
Count(s) Defendants Charge 1 Tjoman Buditaslim (a/k/a “Joe Lim”)
Travis Holasek
Jose Alfonso Tellez
Jose De Jesus Martinez 18 U.S.C. § 1349 – Conspiracy to Commit Wire Fraud 2-3 Tjoman Buditaslim (a/k/a “Joe Lim”)
Travis Holasek
Jose Alfonso Tellez
Jose De Jesus Martinez 18 U.S.C. § 1343 – Wire Fraud 4-5 Tjoman Buditaslim (a/k/a “Joe Lim”)
Travis Holasek
Jose Alfonso Tellez 18 U.S.C. § 1343 – Wire Fraud 6 Tjoman Buditaslim (a/k/a “Joe Lim”)
Jose Alfonso Tellez
Jose De Jesus Martinez 18 U.S.C. § 1343 – Wire Fraud 7 Tjoman Buditaslim (a/k/a “Joe Lim”) 18 U.S.C. § 1028A(a)(1) – Aggravated Identity Theft 8 Travis Holasek 18 U.S.C. § 1028A(a)(1) – Aggravated Identity Theft 9 Jose De Jesus Martinez 18 U.S.C. § 1028A(a)(1) – Aggravated Identity TheftAn indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 20 years in prison, and a fine of $250,000, plus restitution if appropriate, for each violation of 18 U.S.C. §§ 1343 and 1349, as well as a mandatory sentence of two years in prison for each violation of 18 U.S.C. § 1028A. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by Assistant U.S. Attorneys Christiaan Highsmith and Emily Dahlke with the assistance of Aarian Beiti. The prosecution is the result of an investigation by the Federal Housing Finance Agency – Office of Inspector General, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development – Office of Inspector General, and the California Department of Justice.
Fort Collins Woman Sentenced to Six Years for Drug Trafficking and Money LaunderingRead the Press Release
DENVER—The United States Attorney’s Office for the District of Colorado announces that Catyria Lopez-Gomez, 43, of Fort Collins, Colorado, was sentenced to 6 years in prison, followed by 3 years of supervised release, for drug trafficking and money laundering.
According to the plea agreement, the defendant helped launder money for a drug trafficking organization in the Western Colorado. She also recruited others to help send drug proceeds to Mexico. Additionally, she picked up large quantities of methamphetamine from Phoenix, Arizona and drove it to Montrose, Colorado. Once in Montrose, the drugs would be distributed.
“Drug trafficking, and the money-laundering that finances it, are crimes against the community,” said U.S. Attorney Cole Finegan. “We are grateful to our law enforcement partners for their efforts to curb these criminal activities.”
“IRS Special Agents are experts in disrupting and dismantling drug trafficking organizations by targeting their illegal profits used to finance their operations,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “IRS-CI, our law enforcement partners, and the United States Attorney’s Office will continue to work together to eliminate this threat to our communities.”
IRS-CI, the DEA, the Montrose Police Department, the Montrose County Sheriff’s Office, the Seventh Judicial District Drug Task Force, and the United States Marshals Service investigated this case. Assistant United States Attorneys Alexander Duncan, Susan (Zeke) Knox, and Zachary Phillips handled the prosecution.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information on the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Case Number: 19-cr-535
Former Law Enforcement Officer Sentenced to 30 Years for Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Mo. – A Crane, Mo., man was sentenced in federal court today for sexually exploiting a child.
Jeffrey Prowant, 47, was sentenced by U.S. District Judge Brian C. Wimes to 30 years in federal prison without parole. The court also sentenced Prowant to spend the rest of his life on supervised release following incarceration. Prowant will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
Prowant was a Kansas City, Mo., police officer from 2000 to 2002 and a Monroe County, Michigan, sheriff’s deputy from 2002 to 2005.
On Nov. 16, 2022, Prowant pleaded guilty to the sexual exploitation of a child. Prowant admitted that he engaged in online conversations via the Kik application with an undercover FBI employee. During those online conversations, Prowant shared pornographic images of a 14-year-old victim with whom he claimed to be sexually active. Prowant offered to meet the undercover FBI employee in person to engage in illegal sexual activity.
On Sept. 29, 2021, law enforcement officers executed a search warrant at Prowant’s residence. Prowant delayed answering the front door for nine minutes, during which time he deleted the Kik application and a folder containing suspicious images.
The 14-year-old child victim told investigators that Prowant had sexually assaulted her and confirmed that he took pornographic photos of her.
This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the FBI, Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, and the Stone County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Florida man arraigned for bank fraudRead the Press Release
Kennard Bouk III, age 56, of Apopka, Florida, was arraigned on Nov. 13 for bank fraud and passing counterfeit obligations or securities of the United States. Bouk pleaded not guilty. A trial has been set for Feb. 22, 2024, before U.S. District Court Judge Alan B. Johnson.
If convicted on all counts, Bouk faces up to 50 years’ imprisonment with three years of supervised release and up to a $1.5 million fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the U.S. Secret Service.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 23-CR-00122
Florida business owners plead guilty for their role in durable medical equipment fraud schemeRead the Press Release
ATLANTA - Brett Weiner and Valerie Desalvo have pled guilty to federal conspiracy charges for their role in buying and selling fake doctors’ orders used to obtain over $1.5 million in fraudulent payments from Medicare.
“Durable Medical Equipment fraud schemes involve much more than simply bilking the Medicare system,” said U.S. Attorney Ryan K. Buchanan. “These schemes exploit our most vulnerable citizens in the name of personal greed, and our office is committed to finding and prosecuting those involved.”
“Health care fraud is all about the money,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hopefully this case and the work of our special agents with their financial expertise will be a deterrent to anyone thinking about abusing federal healthcare programs to line their own pockets.”
“Kickbacks can corrupt medical decision-making, resulting in medically unnecessary durable medical equipment and services. Such schemes can affect the availability of medically needed services and drive up the cost of health care for everyone,” stated Special Agent in Charge Tamala Miles with the U.S. Department of Health and Human Services Office of Inspector General. “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Brett Weiner and Valerie Desalvo owned and operated Laboratory Marketing Services, LLC (“LMS”), a business in Boca Raton, Florida. LMS was in the business of, among other things, receiving kickback payments in exchange for patient “leads,” consisting of billable Medicare beneficiaries’ personal identifying information. Defendants Weiner and Desalvo received bribes from DME companies such as Medihealth Medical Solutions, LLC, located in Amory, Mississippi, and Liberty Medical DME, LLC, in Atlanta, Georgia, in exchange for the leads. These “leads” included, among other information, each Medicare beneficiary’s name, Medicare number, diagnoses, pain level, and primary care physician.
Through LMS, Weiner and Desalvo also bought and sold signed doctors’ orders from Nagaindra Srivastav and his company B2B Apps Solutions, LLC in Tampa, Florida, which they sold to DME companies. A substantial portion of the doctors’ orders that Weiner and Desalvo purchased from Srivastav and B2B contained forged signatures or purported approvals of physicians or other health care providers whose names and professional identifying information were used without their authorization or knowledge.
In total, Weiner and Desalvo, through LMS, caused the submission of more than $.15 million in false and fraudulent claims to Medicare, which generated approximately $715,000 in payments, for braces that were procured through the payment of illegal kickbacks and bribes and were ineligible for Medicare reimbursement.
Brett Weiner, 61, of Atlanta, Georgia, and Valerie Desalvo, 58, of Boca Raton, Florida, each pleaded guilty to one count of conspiracy to pay health care kickbacks. Sentencing is scheduled for February 8, 2024, at 10:00 a.m. before U.S. District Judge Steve C. Jones.
This case is being investigated by the Federal Bureau of Investigation and Department of Health and Human Services Office of the Inspector General.
Assistant U.S. Attorney David A. O'Neal is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Firearms Trafficker Sentenced to 24 Months in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Trevell Walker, 23, of Kentwood, Michigan, was sentenced to 24 months in federal prison for illegally purchasing and trafficking at least six firearms. U.S. District Court Judge Robert J. Jonker also imposed three years of supervised release following his term of incarceration.
“Straw purchasing and gun trafficking drive a dangerous black market for firearms,” said U.S. Attorney Mark Totten. “These crimes feed the violence that plague communities across Michigan. My office will hold straw purchasers and illegal gun traffickers accountable for creating these supply lines of violence.”
Walker ran an illegal gun trafficking business, charging customers $20 to $50 per firearm to lie on the purchase forms, saying he was buying the guns for himself when he was really purchasing them for other people. This tactic is sometimes referred to as “straw purchasing.” Walker knew that his customers, who were convicted felons, were prohibited from buying guns for themselves. Walker capitalized on his lack of criminal history and ability to purchase guns, by purchasing guns in his name and then selling those firearms to prohibited persons for a profit.
“There are serious consequences that come from illegally purchasing firearms for prohibited individuals. Holding Trevell Walker accountable for his criminal conduct is paramount in ensuring public safety in the community,” said ATF Detroit Special Agent in Charge James Deir. “The woman and men of ATF work side by side with our U.S. Attorney’s, federal, state, and local law enforcement partners to make our communities safer.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Metro Pattern Crime Team consisting of detectives from the Kentwood Police Department, Kent County Sheriff’s Office, and the Wyoming Police Department as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.
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Federal Court Shuts Down Houston-Area Tax Return Preparer and BusinessRead the Press Release
A federal court last week permanently enjoined a Houston-area tax return preparer and her business from preparing federal tax returns for others, among other related prohibitions.
Crystal Ojeda and her tax return preparation business, Money Market Tax Company LLC, consented to a permanent injunction in an order entered against them on Nov. 9. The complaint filed earlier this year alleges that Ojeda prepared over 10,000 federal income tax returns during 2018-2023 from her business Money Market Tax Company LLC, as well as through two separate sole proprietorships: Money Market Financial Services and Money Market Financial. The complaint further alleges that in a substantial number of these tax returns, Ojeda significantly overstated her customers’ tax refund amounts by fabricating or inflating business losses, medical and dental expenses and charitable contributions. In addition, the complaint alleges that for some customers’ returns, Ojeda falsely claimed residential energy credits to which her customers were not entitled.
By repeatedly understating her customers’ tax liabilities, Ojeda allegedly caused the United States harm of an estimated $4.8 million in tax revenue just from the years 2020 to 2022, and millions more from earlier years.
In addition to other prohibitions, the injunction order prohibits Ojeda and her business from acting as a federal tax-return preparer for any person or entity other than on their own behalf and from using or obtaining any Preparer Tax Identification Number or Electronic Filing Identification Number.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard personal information.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Eight New Orleans Residents Indicted for Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that on June 9, 2023, JONATHAN GONZALEZ, age 24, ANTHONY ROMAN, age 24, DARNELL MELTON, age 26, SAUL REED, age 32, MARK WILLIAMS, age 22, RONALD JOHNSON, age 25, KEVIN TYLER, III, age 25, and DERRICK BRUMFIELD, age 22, all residents of New Orleans, Louisiana were indicted in a 15-count second superseding indictment, that was unsealed on November 3, 2023.
GONZALEZ, ROMAN, MELTON, WILLIAMS, JOHNSON, TYLER, III, and BRUMFIELD are charged in Count 1 with conspiracy to distribute and possess with intent to distribute controlled substances in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A)-(D), 841(b)(2), and Section 846. The maximum penalties for this count vary as to each defendant. GONZALEZ, WILLIAMS, and MELTON face a maximum of 20 years in prison, up to a $1,000,000 fine, and at least three years of supervised release. ROMAN and JOHNSON face a minimum of five years up to 40 years in prison, a maximum $5,000,000 fine, and at least four years of supervised release. TYLER, III faces a minimum of 10 years up to life in prison, a maximum $10,000,000 fine, and at least five years of supervised release.
The same defendants, with the exception of MELTON, are charged in Count 2 with conspiracy to possess firearms in furtherance of drug trafficking, in violation of Title 18, United States Code, Section 924(o). The maximum penalties for this count are 20 years in prison, up to a $250,000 fine, and up to three years of supervised release.
GONZALEZ, ROMAN, WILLIAMS, JOHNSON, TYLER, III, and REED are variously charged with possession with intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A)-(D), and 841(b)(2) in Counts 3, 6, 8, 10, and 12. GONZALEZ, WILLIAMS, and REED face a maximum of 20 years in prison, up to a $1,000,000 fine, and at least three years of supervised release. ROMAN, JOHNSON, and TYLER, III face a minimum of five years up to 40 years in prison, a maximum $5,000,000 fine, and at least four years of supervised release.
MELTON, REED, and JOHNSON are charged with being felons in possession of firearms, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8) in Counts 7, 9, and 15, respectively. The maximum penalties for each of these counts is 15 years in prison, a $250,000 fine, and three years of supervised release.
GONZALEZ, ROMAN, WILLIAMS, JOHNSON, and TYLER, III are variously charged with possessing firearms in furtherance of drug trafficking, in violation of Title 18, United States Code, Section 924(c) in Counts 4, 11, and 13. Each of these counts carries a minimum of five years and up to life in prison, which must run consecutively to any other sentence, up to a $250,000 fine, and up to five years of supervised release.
ROMAN, JOHNSON, and TYLER, III are charged in Count 14, with using and maintaining a drug premises, in violation of Title 21, United States Code, Section 856(a)(1). The maximum penalties for this court are 20 years in prison, a $500,000 fine, and three years of supervised release.
GONZALEZ and ROMAN are charged in Count 5, with possessing a vehicle stolen from the Norfolk Southern Automotive Distribution Facility, in violation of Title 18, United States Code, Section 659. The maximum penalties for this count are 10 years in prison, a $250,000 fine, and three years of supervised release.
Each individual count also carries a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that the superseding indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney David Berman of the Violent Crime Unit is in charge of the prosecution.
Duplin County Man Facing Federal Charges in Fentanyl Overdose Death CaseRead the Press Release
RALEIGH, NC – A Mount Olive man was federally indicted and arrested for allegedly trafficking drugs and distributing fentanyl to a victim who later died as a result of an overdose. Dylan Jones, age 23, is currently facing five federal charges including one count of distribution resulting in death, three counts of distribution of fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime. If convicted, Jones is facing a mandatory minimum of 25 years in prison.
“North Carolina reported a 22% increase in overdose deaths in 2021 with more than 4000 people losing their life in a single year, and more than 77% of the deaths likely involving fentanyl,” said Michael Easley. “We are partnering with local law enforcement to train and educate on the dangers of fentanyl and prioritizing the prosecution of it.”
“The Sheriff’s Office and the United States Attorney will continue to work diligently to dismantle drug trafficking operations in our community and ensure those responsible for the deaths of our loved ones are held accountable,” said Duplin County Sheriff Stratton Stokes. “I am thankful for their partnership as our county faces the fentanyl crisis that touches every corner of our nation.”
According to the indictment, Jones is alleged to have supplied counterfeit pills containing fentanyl to a victim who died in 2022. He is also alleged to have sold fentanyl on three different dates and during at least one of those sales, was carrying a firearm. Jones was arrested on state charges on November 2, 2022, and was recently arrested on federal charges on November 7, 2023. Jones is currently in custody and has a detention hearing set for November 16 where the Government will seek pre-trial detention.
The Drug Enforcement Administration and the Duplin County Sheriff’s Office are investigating the case and Assistant U.S. Attorney Tyler Lemons is prosecuting the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:23-cr-00114-FL-BM-1.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
DeKalb man charged for allegedly threatening U.S. RepresentativeRead the Press Release
ATLANTA – Sean Patrick Cirillo has been charged with transmitting interstate threats to injure Congresswoman Marjorie Taylor Greene and her staff on November 8, 2023. Cirillo made his initial appearance in federal court today.
“Cirillo’s alleged threats to harm the Congresswoman and her staff are intended to sow fear in our public servants,” said U.S. Attorney Ryan K. Buchanan. “Any individual who threatens or seeks to intimidate government officials should expect to be swiftly charged and vigorously prosecuted.”
“Unlawful threats against our elected officials are an assault against our democracy,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “No one should fear violence because of who they are or what they believe. The FBI will continue to work with our law enforcement partners to seek justice in these cases.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: On November 8, 2023, Sean Patrick Cirillo called Congresswoman Greene’s District of Columbia office twice and threatened violence against her, her staff, and their families.
During one of the calls, Cirillo said: “Yeah, I got a bead on her. Like, a sniper rifle. A sniper rifle. And I’m gonna kill her next week. I’m gonna murder her. I’m gonna shoot her in the [expletive] head, okay? Tell the FBI, okay? I’m gonna kill this [expletive]. Tell her. I’ll kill you too if you want.” Cirillo went on to shout, “You don’t think you’re gonna get payback? You’re gonna die! Your family is gonna die! [Expletive!] You don’t think it’s gonna happen when you’re out of power?”
Sean Patrick Cirillo, 34, of DeKalb County, Georgia, was charged by criminal complaint on November 9, 2023. Members of the public are reminded that the criminal complaint only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Bret R. Hobson and Brent Alan Gray are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Convicted Fraudster Sentenced to More Than 17 Years in Prison for Hiring Hitman to Murder WitnessesRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced Alexander Leszczynski to 17 years and 6 months in federal prison for murder for hire and obstruction of justice. Leszczynski had pleaded guilty on June 6, 2023. Judge Moody ordered that Leszczynski’s sentence of 17 years and 6 months be served consecutive to the 17 years and 6 months’ sentence he received in a related fraud case.
According to court documents, in October 2020, Leszczynski, using the name of a fake charity, filed a fraudulent warranty deed for a transfer of a property in Redington Shores, Florida. When the owners of that residence, Victim 1 and Victim 2, sued Leszczynski to correct the deed, Leszczynski sent a series of harassing letters, emails, and faxes to the victims and the lawyer representing them in the lawsuit.
In April 2022, Leszczynski was charged with the deed fraud related to the property belonging to Victim 1 and Victim 2, various other frauds, as well as multiple counts of money laundering in case United States v. Alexander Leszczynski, 8:22-cr-155-MSS-SPF. He was arraigned on May 17, 2022, and ordered detained.
In August 2022, the FBI became aware that while incarcerated at the Pinellas County Jail, Leszczynski sought out a hitman to kill Victim 1 and Victim 2. Leszczynski reported to a confidential informant that he had $45,000, hidden at his residence, available to pay someone to kill the victims. Leszczynski relayed to the confidential informant that he would be able to get the victims’ property and that his pending criminal case (the fraud case) would have to be dropped if the victims were dead. The confidential informant agreed to put Leszczynski in contact with a purported hitman, who was actually an undercover agent.
On September 8 and 9, 2022, Leszczynski had calls with the undercover agent. Among other details, Leszczynski shared Victim 1 and Victim 2’s names, address, physical descriptions, approximate ages, and provided additional details that would allow the “hitman” to find photographs of Victim 1 and Victim 2 online. Leszczynski also negotiated the price for the murder at $30,000, and repeatedly ensured that he wanted Victim 1 and Victim 2 dead.
In November 2022, Leszczynski pleaded guilty in both cases. He later withdrew his plea in the murder-for-hire case, but again pleaded guilty in June 2023. Since he pleaded guilty in both cases, Leszczynski has written numerous letters—intercepted by the United States—attempting to solicit and threaten others to come forward and fraudulently take responsibility for his crimes.
The fraud case was investigated by the Federal Bureau of Investigation, the Largo Police Department, the Indian Shores Police Department, and the Palm Beach Police Department. It was prosecuted by Assistant United States Attorney Rachel Jones. The murder-for-hire case was investigated by the Federal Bureau of Investigation and the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Shauna S. Hale and Samantha J. Newman.
Carroll Man Receives 70 Months’ Imprisonment for Federal Gun and Drug ConvictionsRead the Press Release
Darwin Robinson, Jr., age 45, from Carroll, Iowa, was sentenced on November 9, 2023, in federal court in Sioux City.
Robinson pled guilty July 20, 2023, to illegally possessing a firearm and possession of methamphetamine with intent to distribute. Robinson was previously convicted of cocaine-possession and three domestic abuse assaults which prohibit a person from possessing any firearm.
At the plea and sentencing hearings, evidence showed Robinson had prohibitive convictions and was a regular user of methamphetamine while possessing a .40 caliber handgun. On March 22, 2021, law enforcement stopped the vehicle Robinson was driving and officers seized 2 small bags of methamphetamine from Robinson and a loaded .40 caliber handgun from the vehicle. Robinson admitted that he planned on selling some or all of the methamphetamine that was found.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Robinson was sentenced to 70 months’ imprisonment and five years of supervised release following imprisonment. There is no parole in the federal system. Robinson remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Carroll, Iowa Police Department, Iowa DCI Criminalistics Laboratory, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3002.
Follow us on Twitter @USAO_NDIA.
CEO of San Diego Financial Firm Charged in Loan ScamRead the Press Release
NEWS RELEASE SUMMARY – November 13, 2023
SAN DIEGO – The CEO of San Diego-based Ethos Asset Management, Inc., which offers financing to international businesses, was arrested in New Jersey Sunday night in connection with fraud charges in the Southern District of California.
Carlos Manuel da Silva Santos of Portugal was taken into custody in Newark, New Jersey as he arrived in the United States from abroad. Santos made his initial appearance there today after the United States unsealed a complaint charging him with wire fraud conspiracy related to a loan scam. Santos is accused of orchestrating the fraud through his company, San Diego-based Ethos Asset Management, Inc.
According to the complaint, Santos required prospective borrowers to provide an upfront fee in an amount equal to a certain percentage of the loan amount. However, upon receipt of the upfront fee, Santos and Ethos did not disburse the loan as agreed upon by the parties. Santos used the upfront fees to repay other prospective borrowers, issue commissions to his co-conspirators, and to pay for personal expenses.
The complaint alleges that to lure prospective borrowers and to obtain lines of credit from financial institutions in furtherance of the scheme, Santos manipulated Ethos’ balance sheets and real financial account statements to artificially inflate Ethos’ net worth. For example, the complaint alleges that Santos induced at least one victim to pay an upfront fee in excess of $8 million by representing Ethos had $359,088,190.22 in a specific brokerage account, but records established that Ethos had no such account. Similarly, the complaint contends Santos altered Ethos bank account statements to inflate bank account balances to prospective borrowers, sometimes by more than $100 million than what was deposited in the account.
This case is being prosecuted by Assistant U.S. Attorney E. Christopher Beeler and Carl F. Brooker, IV.
DEFENDANTS Case Number 23-MJ-4145
Carlos Manuel da Silva Santos Age: 29 Portugal
SUMMARY OF CHARGES
Wire Fraud Conspiracy – Title 18, U.S.C., Section 1349
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCY
Homeland Security Investigations
*The charges and allegations contained in a complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Boston Man Pleads Guilty to Firearm Offenses and Straw Purchasing ConspiracyRead the Press Release
BOSTON – A Boston man pleaded guilty today in connection with conspiring to illegally traffic and straw purchase firearms.
Gustavo Rodriguez, 20, pleaded guilty to one count of conspiracy to make false statements in records required to be kept by an FFL and one count of aiding and abetting making false statements in records required to be kept by an FFL. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Feb. 5, 2024. Rodriguez was initially charged by complaint on Jan. 17, 2023 along with Cory Daigle and Shakim Grant. He was subsequently indicted by a federal grand jury on March 16, 2023.
According to the charging documents, from in or about August 2022 through November 2022, Rodriguez and, allegedly, Daigle conspired to create false entries in records required to be maintained by Daigle, an FFL, in order to conceal the illegal sale of multiple firearms via Grant to Rodriguez, who could not lawfully purchase or possess firearms. Specifically, Grant and, allegedly, Daigle made and signed false representations on required forms to disguise Rodriguez’s identity as the true firearm purchaser. Rodriguez is prohibited from possessing a firearm. It is further alleged that the defendants attempted to coverup the illegal straw purchase by providing false information to law enforcement.
Grant pleaded guilty in May 2023 and is scheduled to be sentenced on Dec. 18, 2023. Daigle has pleaded not guilty and is pending trial.
The charge of conspiracy to make false statements in records required to be kept by an FFL provides for a sentence of up to five years in prison, one year of supervised release and a fine of $250,000. The charge of aiding and abetting making false statements in records required to be kept by an FFL provides for a sentence of up to five years in prison, one year of supervised release and a fine of $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; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance in the investigation was provided by the Revere Police Department. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Berkeley Man Sentenced to 4 Years in Federal Prison for Impersonation and Firearm ChargesRead the Press Release
CHARLESTON, S.C. — Jeremy Allen Hughes, 39, of Goose Creek, was sentenced to four years in federal prison after pleading guilty to impersonating a federal law enforcement officer and possessing a weapon after a domestic violence conviction.
Evidence presented to the Court showed that Jeremy Hughes told witnesses his name was Brian Williams and falsely claimed he was with the U.S. Marshals searching for a fugitive. Hughes carried a pistol and shotgun and wore tactical clothing with a “Police U.S. Marshals” shirt. Investigators arrested Hughes on Dec. 1, 2021. During the arrest, Hughes unlawfully possessed multiple firearms and ammunition. During a search warrant at his residence, investigators located several additional firearms and ammunition. Hughes is federally prohibited from possessing a firearm and ammunition due to a previous domestic violence conviction.
United States District Judge David C. Norton sentenced Hughes to four years imprisonment, to be followed by a two-year term of court ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Berkeley County Sheriff’s Office, the United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Chris Lietzow prosecuted the case.
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Berkeley County man sentenced for child pornography offenseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Patrick Allen Boyd, age 47, of Martinsburg, West Virginia, was sentenced today to 63 months in federal prison for possession of child pornography.
According to court documents and statements made in court, Boyd uploaded an image of child pornography, generating a cyber tip from the National Center for Missing and Exploited Children. A search of Boyd’s home and devices yielded nearly 200 child pornography images involving prepubescent and pubescent males.
Assistant U.S. Attorney Kimberley Crockett prosecuted the case on behalf of the government.
The West Virginia State Police investigated.
U.S. District Judge Gina M. Groh presided.
Aurora Man Sentenced in Connection with Entering Children’s Hospital Carrying Fully Automatic GunRead the Press Release
DENVER—The United States Attorney’s Office for the District of Colorado announces that Jeremy Lavon Tate, age 29, of Aurora, was sentenced to 33 months in prison and three years of supervised release for Felon in Possession of a Firearm and Ammunition.
According to the plea agreement, on September 24, 2022, Tate entered the Children’s Hospital in Adams County armed with a loaded .40-caliber handgun. The handgun had a laser-mounted sight and a convertor switch making the handgun fully automatic. Witnesses reported that Tate was openly carrying the gun in the hall and that Tate broke through a set of employee-only doors. A University of Colorado Medical Campus Police Department sergeant disarmed Tate, and a hospital security officer detained him. Aurora police then arrested Tate inside the hospital.
“The swift, courageous actions of brave law enforcement officers and hospital security staff prevented a possible catastrophe from unfolding inside Children’s Hospital,” said U.S. Attorney Cole Finegan. “By stopping an armed felon in his tracks, they protected innocent citizens from incredible danger.”
“We are grateful for the swift response, apprehension and disarming of Jeremy Tate by the University of Colorado Anschutz Medical Campus Police Department, hospital security staff, and Aurora Police Department,” said ATF Special Agent in Charge Brent Beavers. “Machine gun conversion devices convert a semi-automatic firearm into a fully automatic firearm, increasing its potential for devastation in our communities and for law enforcement.”
This case was investigated by the ATF and Aurora Police Department. Assistant United States Attorney Brian Dunn handled the prosecution.
Case Number: 22-cr-301-WJM
11 November 2023
Justice Department Secures Agreement with South Dakota Hotel and Sports Lounge to Resolve Allegations of Discrimination Against Native AmericansRead the Press Release
WASHINGTON – The Justice Department announced today that the owners and operators of the Grand Gateway Hotel and the Cheers Sports Lounge and Casino, a hotel and sports bar located in Rapid City, South Dakota, have entered into a consent decree resolving the Department’s lawsuit alleging that the defendants discriminated against Native American customers in violation of Title II of the Civil Rights Act of 1964.
Under the consent decree, which still must be approved by the U.S. District Court for the District of South Dakota, Connie Uhre will be barred from serving as an officer or director of the company or from exercising any management duties or being involved in any operations on behalf of the Grand Gateway Hotel for four years. The defendants will also issue a public apology and send it specifically to tribal organizations in South Dakota and throughout the Great Plains region.
“As alleged in the complaint, the defendants both prevented Native Americans from booking rooms at the hotel and made public statements discouraging Native Americans from setting foot on the business’s property,” said Attorney General Merrick B. Garland. “Statements like the one made by a defendant in this case – that ‘[w]e will no long[er] allow any Native American on property,’ – are reminiscent of a long history of prejudice and exclusion Native American communities have faced. The Justice Department will continue to work alongside Native American communities to fulfill the promise of equal protection under the law.”
“The defendants’ conduct in this case was egregious, motivated by naked animus, and amounted to an outright ban on Native American customers seeking access to a public establishment,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This kind of hateful conduct invokes a long and painful history of negative stereotypes against and exclusion of the Native American community. We applaud the Tribal elders, local officials, and advocates who took a stand against this shameful conduct. Our settlement should send a message to public establishments across the country that their doors must be open to all communities regardless of race. As we commemorate Native American Heritage Month, the Justice Department underscores its commitment to stand with Native Americans whenever they face unlawful discrimination.”
“This consent decree affirms what should have never been at issue in the first place — that Native Americans have the fundamental right to receive equal services at places of public accommodation,” said U.S. Attorney Alison J. Ramsdell for the District of South Dakota. “Although this agreement does not change the reprehensible behavior of Ms. Uhre or the harm caused by racial discrimination, the consent decree mandates Uhre’s removal from corporate control, the immediate cessation of discriminatory policies and the implementation of a series of preventative measures that must be taken at the expense of the corporation. The ongoing involvement of the Justice Department stands as a forceful reminder to all business owners in South Dakota that refusing services on the basis of race is against the law and will not be tolerated.”
The Department’s lawsuit, filed in October 2022, alleged that, since at least March 20, 2022, the Retsel Corporation and two of its directors, Connie Uhre and Nicholas Uhre, discriminated against Native American customers through policies and practices that denied Native Americans the full and equal enjoyment of access to the services, accommodations, and privileges at the Grand Gateway Hotel and the Cheers Sports Lounge and Casino.
Specifically, the complaint alleged that on or around March 20, 2022, Connie Uhre told other Rapid City hotel owners and managers that she did “not want to allow Natives on property…. The problem is we do not know the nice ones from the bad natives…so we just have to say no to them!” Uhre then announced on Facebook that “[w]e will no long[sic] allow any Native American” in the Grand Gateway or in the Cheers Sports Lounge and Casino. The complaint further alleged that on at least two occasions, on March 21 and March 22, 2022, respectively, the defendants turned away Native Americans who sought to book rooms in the Grand Gateway.
The apology, issued as part of the consent decree, will include the following statement:
“We extend our sincere apology to all for the statements made by Connie Uhre on March 19-20, 2022, regarding Native Americans. Ms. Uhre’s comments were not consistent with the values or polices of our company or of our businesses, the Grand Gateway Hotel and Cheers Sports Lounge. We deeply regret the pain or harm Ms. Uhre’s statements have caused within our Native American community. We want to make clear that we welcome all Native Americans to the Grand Gateway Hotel and Cheers Sports Lounge.”
The consent decree also requires that the defendants retain a compliance officer to oversee compliance with its terms, implement and publish an anti-discrimination policy, institute a complaint process, undergo training, and develop an affirmative marketing plan. These provisions will be in effect for the next three years. Title II prohibits discrimination based on race, color, religion, or national origin in places of public accommodation, such as hotels and places of entertainment. Under Title II, the Justice Department’s Civil Rights Division can obtain injunctive relief that changes policies and practices to remedy the discriminatory conduct. Title II does not authorize the division to obtain monetary damages for customers who are victims of discrimination.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals may report discrimination in places of public accommodation that violates Title II by calling the Justice Department at 1-833-591-0291, or submitting a report online.
10 November 2023
Warga Negara Indonesia Diekstradisi Dari Singapura Untuk Menghadapi Tuntutan Karena Melakukan Skema Ponzi Yang Menargetkan Komunitas Indonesia Dan Indo-AmerikaRead the Press Release
Di pengadilan federal di Brooklyn, Dakwaan 16 dakwaan dan 16 dakwaan pengganti telah dibuka segelnyadalam penuntutan warga negara Indonesia bernama Francius Marganda yang melakukan penipuan sekuritas, penipuan kawat, pencucian uang dan tuduhan konspirasi terkait karena melakukan skema Ponzi dari bulan Mei 2019 hingga Mei 2021 yang menargetkan ratusan korban investor yang menetap di lebih dari 12 negara bagian termasuk New York dan di Indonesia. Marganda diekstradisi ke Distrik Timur New York dari Signapore kemarin dan akan diadili pada 13 November 2023 di hadapan Hakim Ketua Amerika Serikat Lois Bloom.
Breon Peace, Pengacara Amerika Serikat untuk Distrik Timur New York; James Smith, Asisten Direktur Penanggung Jawab, Federal Bureau of Investigation (Biro Investigasi Federal), Kantor Lapangan New York (FBI); dan Ivan J. Arvelo, Agen Khusus Penanggung Jawab, U.S. Department of Homeland Security (Departemen Keamanan Dalam Negeri AS), Investigasi Keamanan Dalam Negeri (HSI), mengumumkan ekstradisi dan gugatannya.
“Ratusan korban menitipkan uang hasil jerih payah mereka kepada rekan senegaranya dari Indonesia yang ternyata adalah penipu yang jahat. Marganda mengkhianati kepercayaan mereka dengan menggunakan skema Ponzi klasik untuk menipu mereka hingga jutaan dolar untuk keuntungan pribadinya,” kata Peace, Pengacara Amerika Serikat. “Kantor ini berkomitmen untuk melindungi masyarakat investor dari pemangsa seperti Marganda dan akan bekerja sama dengan mitra penegak hukum kami untuk membawa para penjahat ini ke keadilan di mana pun mereka berada.”
Mr. Peace berterima kasih kepada Office of International Affairs (Kantor Hubungan Internasional) di Departemen Kehakiman, khususnya Atase DOJ yang berbasis di Manila dan Bangkok; mitra penegakan hukum di U.S. Embassy (Kedutaan Besar AS) di Singapura, termasuk Atase Hukum FBI, Atase HSI, dan U.S. Department of State’s Diplomatic Security Service Overseas Criminal Investigations office (Kantor Investigasi Kriminal Luar Negeri Layanan Keamanan Diplomatik di Departemen Luar Negeri AS); dan para pihak berwenang di Singapura, khususnya Kepolisian Singapura dan Attorney-General’s Chambers (Dewan Kejaksaan Agung), atas bantuan mereka dalam penangkapan dan ekstradisi Marganda. Mr. Peace juga berterima kasih kepada Securities and Exchange Commission, Fort Worth Regional Office (Komisi Sekuritas dan Bursa, Kantor Regional di Fort Worth); United States Attorney’s Office for the Southern District of New York (Kantor Kejaksaan Amerika Serikat untuk Distrik Selatan New York); Internal Revenue Service Criminal Investigation (Investigasi Kriminal Dinas Pendapatan Internal), New York; Federal Trade Commission (Komisi Perdagangan Federal); New York State Attorney General’s Office (Kantor Kejaksaan Agung Negara Bagian New York); Commonwealth of Massachusetts Attorney General’s Office (Kantor Kejaksaan Agung Persemakmuran Massachusetts); New York County District Attorney’s Office (Kantor Kejaksaan Wilayah New York); Queens County District Attorney’s Office (Kantor Kejaksaan Wilayah Queens); New York City Police Department (Departemen Kepolisian Kota New York); Westford Police Department (Departemen Kepolisian Westford), di Westford, Massachusetts; Richfield Police Department (Departemen Kepolisian Richfield), di Richfield, Minnesota; dan Lexington Police Department (Departemen Kepolisian Lexington), di Lexington, Carolina Selatan, atas bantuan mereka dalam penyelidikan ini.
“Marganda diduga memangsa rekan-rekan ekspatriat dan senegaranya untuk menipu uang mereka. Terdakwa membujuk korbannya dengan janji pengembalian investasi yang luar biasa, sebuah godaan yang terbukti berhasil dalam skema Ponzi. Sebaliknya, uang korban tersebut digunakan untuk membiayai gaya hidup mewah si terdakwa. FBI dan mitra penegak hukum kami berdedikasi untuk melindungi masyarakat dari penipuan dan meyakinkan bahwa bagi mereka yang melanjutkan tipe skema seperti ini akan menghadapi konsekuensi atas perbuatan mereka,” ujar Asisten Direktur Penanggung Jawab dari FBI yang bernama Smith.
“Seperti yang dituduhkan, Marganda dan rekan-rekan konspiratornya memangsa komunitas Indonesia dan Indo-Amerika, menjanjikan tingkat pengembalian yang tampaknya terlalu bagus untuk menjadi kenyataan hingga skema Ponzi mereka runtuh, sehingga investor kehilangan tabungan dengan jumlah jutaan dolar yang telah mereka peroleh dengan susah payah,” ujar Agen Khusus HIS Arvelo. “HSI bangga bisa bekerja sama dengan mitra kami di dalam dan luar negeri, dengan memanfaatkan jejak internasional kami untuk melindungi korban yang tidak bersalah dari skema pemangsa dan membawa para pelaku ke keadilan.
Marganda memiliki dan mengoperasikan Air Travel Ticketing Corp., sebuah perusahaan tiket pesawat diskon di New York, dan mengoperasikan MH Lux & Beauty Inc., sebuah perusahaan barang mewah yang terdaftar di California. Seperti yang dituduhkan di dalam dakwaan, dari bulan Mei 2019 hingga Mei 2021, Marganda dan rekan-rekan konspiratornya menjalankan skema untuk menipu para investor dengan cara meminta investasi dalam dua program palsu, yaitu Easy Transfer dan Global Transfer —yang mana Marganda dan rekan-rekan konspiratornya menggambarkan secara palsu sebagai program pinjaman jangka pendek dengan bunga tinggi di mana para investor akan memperoleh pendapatan pasif. Ratusan investor, banyak dari mereka adalah pelanggan dari perusahaan Air Travel milik terdakwa, sebagian besar berasal dari komunitas Indonesia dan Indo-Amerika, dan mereka menginvestasikan lebih dari 23 juta dolar ke dalam Easy Transfer dan Global Transfer. Banyak dari korban-korban ini mempunyai keuangan yang terbatas dan mengumpulkan sumber daya mereka dari kerabat dan teman-teman untuk melakukan investasi.
Dalam surat-surat berisi perjanjian palsu yang dibagikan kepada korban investor, peserta skema menjanjikan tingkat pengembalian yang tinggi – seringkali setinggi 200% atau lebih – pada simpanan investor.
Saat skema Ponzi berlanjut, Marganda dan rekan-rekan konspiratornya mengarahkan para investor untuk melakukan pembayaran tunai dan untuk menyetorkan dana ke dalam rekening bank mereka dan ke rekening investor-investor lain. Marganda dan rekan-rekan konspiratornya menyalahgunakan dana tersebut untuk kepentingan mereka sendiri, termasuk dengan membeli perumahan dan barang-barang mewah. Marganda dan rekan-rekan konspiratornya juga mencuci uang terkait dengan skema tersebut ke dalam rekening bank yang berlokasi di Distrik Timur kota New York dan di Indonesia. Skema Ponzi tersebut akhirnya gagal di bulan Mei 2021, ketika Marganda dan rekan-rekan konspiratornya berhenti melakukan pembayaran kepada para investor.
Tuduhan di dalam dakwaan adalah dugaan, dan Marganda dianggap tidak bersalah kecuali dan hingga terbukti bersalah. Jika terbukti bersalah, Marganda akan menghadapi hukuman penjara hingga 20 tahun untuk setiap tuduhan penipuan kawat, penipuan sekuritas, konspirasi penipuan kawat dan konspirasi pencucian uang dan untuk empat tuduhan pencucian uang; hingga 10 tahun penjara untuk dua tuduhan pencucian uang; dan hukuman penjara hingga lima tahun untuk tuduhan konspirasi penipuan sekuritas.
FBI dan HSI telah membentuk situs web dan hotline email untuk para calon korban. Jika Anda memiliki informasi mengenai tuduhan-tuduhan dalam dakwaan ini atau yakin bahwa Anda mungkin menjadi korban, silakan kirim email ke [email protected] atau www.fbi.gov/Marganda.
Pada bulan Juli 2022, Mr. Peace terpilih sebagai Ketua sub White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (komite Penipuan Kerah Putih untuk Dewan Pertimbangan Kejaksaan Agung) (AGAC). Sebagai pemimpin sub komite, Mr. Peace memainkan peran penting dalam membuat rekomendasi untuk AGAC untuk memfasilitasi pencegahan, penyelidikan dan penuntutan berbagai kejahatan tanpa kekerasan yang bermotif finansial, termasuk penipuan kawat, seperti penipuan yang telah dilakukan oleh Marganda.
Kasus pemerintah ini ditangani oleh Bagian Integritas Publik dari Kantor tersebut. Asisten Pengacara Amerika Serikat bernama Victor Zapana dan Laura Zuckerwise bertanggung jawab atas penuntutan tersebut, dengan bantuan dari Paralegal Spesialis Kavya Kannan.
Terdakwa:
FRANCIUS MARGANDA
Umur: 40
Jakarta, Indonesia dan sebelumnya dari Queens, New YorkE.D.N.Y. Docket No. 22-CR-481 (DLI)
Southwest Georgia Man Sentenced to Prison for Illegally Possessing a GunRead the Press Release
ALBANY, Ga. – A Southwest Georgia resident with a lengthy criminal history was sentenced to serve 15 years in prison for illegally possessing a firearm.
Tomario Ricardo Hicks, 42, of Albany, was sentenced to serve 180 months in prison to be followed by five years of supervised release by U.S. District Judge Leslie Abrams Gardner on Nov. 9. Hicks previously pleaded guilty to possession of a firearm by a convicted felon on Jan. 26. The defendant is not eligible for parole.
“Repeat offenders who continuously disregard the community’s safety and are caught illegally possessing guns will face federal consequences for their crimes,” said U.S. Attorney Peter D. Leary. “Working with our law enforcement partners from every level, we will focus our collective resources to reduce crime and make our neighborhoods as safe as possible.”
“One of ATF’s top priorities is to deny criminals access to firearms and protect the rights of law-abiding citizens. The offender illegally had a firearm that subsequently could have been used against our citizens and our communities; ATF takes this very seriously,” said ATF Assistant Special Agent in Charge Beau Kolodka.
According to court documents, Hicks was pulled over for speeding in Albany on Jan. 28, 2022. Hicks threw a quantity of methamphetamine out of his car during the traffic stop and admitted he was carrying a firearm, even though he was a prohibited person. The .380 caliber pistol was located on the driver side floorboard, along with a digital scale in the center console and a box of baggies in the backseat. Hicks has a lengthy criminal history, to include many prior felony convictions for possession with intent to distribute controlled substances in Dougherty County, Georgia, Superior Court.
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Georgia State Patrol (GSP) and the Albany Dougherty Drug Unit (ADDU). Assistant U.S. Attorney Matthew Redavid prosecuted the case for the government.
Indonesian National Extradited from Singapore to Face Charges of Running Ponzi Scheme Targeting Indonesian and Indo-American CommunityRead the Press Release
A 16-count indictment and 16-count superseding indictment were unsealed in federal court in Brooklyn charging Indonesian national Francius Marganda with securities fraud, wire fraud, money laundering and related conspiracy counts for running a Ponzi scheme from May 2019 to May 2021 that targeted hundreds of victim investors residing in more than 12 states including New York and in Indonesia. Marganda was extradited to the Eastern District of New York from Singapore yesterday and will be arraigned on November 13, 2023 before United States Chief Magistrate Judge Lois Bloom.
Breon Peace, United States Attorney for the Eastern District of New York; James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Ivan J. Arvelo, Special Agent-in-Charge, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), announced the extradition and charges.
“Hundreds of victims entrusted their hard-earned money to a fellow countryman from Indonesia who turned out to be an unscrupulous fraudster. Marganda betrayed their trust by using a classic Ponzi scheme to defraud them out of millions of dollars for his own personal gain,” stated United States Attorney Peace. “This Office is committed to protecting the investing public from predators like Marganda and will work closely with our law enforcement partners to bring these criminals to justice regardless of where in the world they are located.”
Mr. Peace thanked the Justice Department’s Office of International Affairs, particularly the DOJ Attachés based in Manila and Bangkok; law enforcement partners at the U.S. Embassy in Singapore, including the FBI’s Legal Attaché, the HSI Attaché, and the U.S. Department of State’s Diplomatic Security Service Overseas Criminal Investigations office; and Singaporean authorities, particularly the Singapore Police Force and Attorney-General's Chambers, for their assistance with Marganda’s arrest and extradition. Mr. Peace also thanked the Securities and Exchange Commission, Fort Worth Regional Office; the United States Attorney’s Office for the Southern District of New York; the Internal Revenue Service Criminal Investigation, New York; the Federal Trade Commission; the New York State Attorney General’s Office; the Commonwealth of Massachusetts Attorney General’s Office; the New York County District Attorney’s Office; the Queens County District Attorney’s Office; the New York City Police Department; the Westford Police Department, Westford, Massachusetts; the Richfield Police Department, Richfield, Minnesota; and the Lexington Police Department, Lexington, South Carolina, for their assistance with the investigation.
“Marganda allegedly preyed on his fellow expatriates and countrymen in order to defraud them of their money. The defendant enticed his victims with promises of an extraordinary return on investment, a tried-and-true lure into a Ponzi Scheme. Instead, the victims’ money went to funding the defendant’s extravagant lifestyle. The FBI and our law enforcement partners are dedicated to protecting the public from scams and ensuring that those who perpetuate these types of schemes face the consequences for their actions,” stated FBI Assistant Director-in-Charge Smith.
“As alleged, Marganda and his co-conspirators preyed on the Indonesian and Indo-American community, promising rates of return that appeared too good to be true until their Ponzi scheme came crashing down, leaving investors out of their hard-earned savings to the tune of millions of dollars,” stated HSI Special Agent-in-Charge Arvelo. “HSI is proud to work with our partners at home and abroad, leveraging our international footprint to protect innocent victims from predatory schemes and bring the perpetrators to justice.”
Marganda owned and operated Air Travel Ticketing Corp., a discount airline tickets company in New York, and operated MH Lux & Beauty Inc., a purported luxury goods company registered in California. As alleged in the indictment, from May 2019 to May 2021, Marganda and his co-conspirators ran a scheme to defraud investors by soliciting investments in two sham programs called Easy Transfer and Global Transfer—which Marganda and his co-conspirators falsely represented were short-term, high-interest loan programs in which investors would earn passive income. Hundreds of investors, many of the defendant’s Air Travel customers, were predominantly from the Indonesian and Indo-American community, and they invested more than $23 million into Easy Transfer and Global Transfer. Many of the victims had limited means and had pooled their resources with relatives and friends to make investments.
In fraudulent agreement letters distributed to victim investors, the scheme participants promised high rates of return—often as high as 200% or more—on the investors’ deposits. As the Ponzi scheme continued, Marganda and his co-conspirators directed investors to make cash payments and to deposit funds into their bank accounts and the accounts of other investors. Marganda and his co-conspirators misappropriated the funds for their own benefit, including by buying real estate and luxury goods. Marganda and his co-conspirators also laundered scheme-related money into bank accounts located in the Eastern District of New York and in Indonesia. The Ponzi scheme ultimately collapsed in May 2021, when Marganda and his co-conspirators stopped making payments to investors.
The charges in the indictment are allegations, and Marganda is presumed innocent unless and until proven guilty. If convicted, Marganda faces up to 20 years’ imprisonment for each of the wire fraud, securities fraud, wire fraud conspiracy and money laundering conspiracy counts and for four of the money laundering counts; up to 10 years’ imprisonment for two of the money laundering counts; and up to five years’ imprisonment for the securities fraud conspiracy count.
The FBI and HSI have established a website and an e-mail hotline for potential victims. If you have information regarding the allegations in the indictment or believe that you may be a victim, please go to www.fbi.gov/Marganda or e-mail [email protected]
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including wire fraud, such as the fraud that Marganda committed.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Victor Zapana and Laura Zuckerwise are in charge of the prosecution, with assistance from Paralegal Specialist Kavya Kannan.
The Defendant:
FRANCIUS MARGANDA
Age: 40
Jakarta, Indonesia and formerly of Queens, New YorkE.D.N.Y. Docket No. 22-CR-481 (DLI)
Former Indiana State Representative Agrees to Plead Guilty to Federal Corruption ChargeRead the Press Release
INDIANAPOLIS—Sean Eberhart, 57, a former member of the Indiana House of Representatives, has agreed to plead guilty to conspiring with others to solicit and receive the promise of future, lucrative employment with a gaming company in exchange for his support of legislation beneficial to the gaming company. The United States Attorney’s Office filed the charges along with Eberhart’s agreement to plead guilty.
According to court documents, Eberhart was the elected representative for Indiana House District 57, which included Shelby County and portions of Bartholomew and Hancock counties. Eberhart served on the House Committee on Public Policy, which had jurisdiction over matters concerning casinos and gaming in Indiana.
In late 2018 and early 2019, a gaming company called Spectacle Entertainment sought to purchase the state licenses for two casinos that were located on the waterfront of Lake Michigan, and to relocate those casinos to other areas beneficial to Spectacle. Purchases and relocations of casinos in Indiana must be approved through the passage of a bill by both houses of the Indiana legislature, then signed by the Governor.
A bill to allow Spectacle’s purchases and relocations was introduced in the Indiana House and considered by the House Committee on Public Policy. In addition to approving the purchases and relocations of the casinos, the bill included provisions for Spectacle to pay a “transfer fee.”
According to the federal charges, an owner of Spectacle, identified as Individual A, offered, and Eberhart accepted, the promise of future employment at Spectacle, which included annual compensation of at least $350,000. In exchange, Eberhart allegedly used his position as a member of the Indiana House of Representatives to advocate and ultimately vote for passage of the bill on terms favorable to Spectacle, including to authorize the transfer and relocation of the two casinos, reducing the transfer fee from $100 million to $20 million, and enacting tax incentives that would benefit Spectacle. Additionally, Eberhart allegedly sent text messages regarding his efforts to secure legislation favorable to Spectacle and to “make it right for” Individual A.
The charges were announced by Zachary A. Myers, United States Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office. The FBI investigated this case.
U.S. Attorney Myers thanked Assistant United States Attorney Brad Shepard, who is prosecuting this case.
Charges are merely allegations, and those accused are presumed innocent until they plead guilty or are proven guilty beyond a reasonable doubt in a court of law.
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9 November 2023
“Head of Legal and Compliance” for Multibillion-Dollar Cryptocurrency Pyramid Scheme “OneCoin” Pleads GuiltyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that IRINA DILKINSKA pled guilty today in Manhattan federal court to wire fraud and money laundering charges in connection with her participation in the massive OneCoin fraud scheme. OneCoin, which began operations in 2014 and was based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency by the same name through a global multi-level-marketing (“MLM”) network. As a result of misrepresentations made about OneCoin, victims invested over $4 billion worldwide in the fraudulent cryptocurrency. Today, U.S. District Judge Edgardo Ramos accepted DILKINSKA’s guilty plea.
U.S. Attorney Damian Williams said: “As OneCoin’s so-called ‘Head of Legal and Compliance’ Irina Dilkinska accomplished the exact opposite goal of her position. As she has now admitted, Dilkinska facilitated the laundering of millions of dollars of illicit profits OneCoin accrued through its multi-level-marketing scheme. The dedicated prosecutors of this Office and our law enforcement partners will continue to pursue this important case until every defendant is brought to justice.”
According to the allegations in the Superseding Information and other filings and statements made in court:
In 2014, RUJA IGNATOVA, a/k/a “the Cryptoqueen,” and KARL SEBASTIAN GREENWOOD co-founded OneCoin,[1] a company based in Sofia, Bulgaria, that marketed a purported cryptocurrency by the same name, which was in fact a fraudulent pyramid scheme. OneCoin operated as a MLM network through which members received commissions for recruiting others to purchase cryptocurrency packages. This MLM structure influenced rapid growth of the OneCoin member network. Indeed, according to OneCoin’s promotional materials, over three million people invested in fraudulent cryptocurrency packages. OneCoin records show that between the fourth quarter of 2014 and the fourth quarter of 2016 alone, OneCoin generated €4.037 billion in sales revenue and earned “profits” of €2.735 billion.
DILKINSKA was the purported Head of Legal and Compliance for OneCoin. But rather than ensuring that OneCoin complied with the law, DILKINSKA assisted in running its day-to-day operations and laundered money for OneCoin, including arranging for the transfer of $110 million in fraudulently obtained OneCoin proceeds to a Cayman Islands entity.
On October 12, 2017, IGNATOVA was charged with OneCoin-related fraud and money laundering charges in the U.S. District Court for the Southern District of New York and a federal warrant was issued for her arrest. On October 25, 2017, IGNATOVA traveled on a commercial flight from Sofia, Bulgaria, to Athens, Greece; she has not been seen publicly since. IGNATOVA was added to the Federal Bureau of Investigation’s (“FBI”) Top Ten Most Wanted List in June 2022. The FBI is offering a $100,000 reward for information leading to IGNATOVA’s arrest.
* * *
DILKINSKA, 42, a citizen of Bulgaria, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum potential sentence of five years in prison, and one count of conspiracy to commit money laundering, which also carries a maximum potential sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge. Sentencing before Judge Ramos is scheduled for February 14, 2024, at 10:00 a.m.
Mr. Williams praised the outstanding investigative work of the Internal Revenue Service-Criminal Investigation and the FBI, which jointly conducted this investigation with Special Agents from the U.S. Attorney’s Office.
If you have any information about IGNATOVA’s whereabouts, please contact your local FBI office or the nearest American Embassy or Consulate. Tips can be reported anonymously and can also be reported online at tips.fbi.gov.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Folly, Juliana N. Murray, and Kevin Mead are in charge of the prosecution.
[1] OneCoin has operated using several corporate entities and d/b/a names, including “OneCoin Ltd.,” “OnePayments Ltd.,” “OneNetwork Services Ltd.,” “OneAcademy,” and “OneLife.” These entities and d/b/a names are referred to collectively here as “OneCoin.”
Worcester Man Indicted for Role in Drug Distribution ConspiracyRead the Press Release
BOSTON – A Worcester man was indicted today by a federal grand jury in connection with his alleged role in a cocaine distribution conspiracy.
Hector Torres, 32, was indicted on one count of conspiring to possess with the intent to distribute 500 grams or more of cocaine and one count of possession with intent to distribute 500 grams or more of cocaine. Torres will appear for arraignment in Worcester at a later date.
In or about June 2022, Torres allegedly conspired with others to possess and distribute more than 500 grams of cocaine.
The charge of conspiring to distribute 500 or more grams of cocaine provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; and Acting Chief Paul Saucier of the Worcester Police Department made the announcement today. Valuable assistance was provided by the Drug Enforcement Administration, New England Field Division. Assistant U.S. Attorney Kaitlin Brown of the Worcester Branch Office is prosecuting the case.
The details contained in the court documents are allegations. The defendant is presumed innocent unless and until proved guilty beyond a reasonable doubt in a court of law.
University of Miami Student Charged with Hacking Multi-National Shipping, Receiving, and Supply Chain Management Company and Orchestrating Nationwide, Multi-Million Dollar Fraud SchemeRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Matthew Frederic Bergwall (21, Coral Gables), also known as “MXB,” with conspiracy to commit computer and mail fraud, and substantive mail fraud. If convicted on all counts, Bergwall faces a maximum penalty of 45 years in federal prison. The indictment also notifies Bergwall that the United States is seeking an order of forfeiture in the amount of the proceeds of the charged criminal conduct. Bergwall will make his initial appearance today in Miami.
According to the indictment, from December 2021 until April 2022, Bergwall gained unauthorized access to compromised employee accounts of a multi-national shipping, receiving, and supply chain management company (the Victim Company). Bergwall and his co-conspirators used these accounts to enter fraudulent tracking information for merchandise transported by the Victim Company on behalf of victim-retailers located all over the country. This allowed the co-conspirators to pursue full refunds from victim-retailers while maintaining physical possession of the merchandise, such as high-end electronics, jewelry, designer clothing, and accessories. Bergwall and his co-conspirators offered this service for sale, which was marketed as “FTID” (Fraudulent Tracking ID). Bergwall’s FTID fraud scheme caused nearly 10,000 fraudulent returns and resulted in at least $3.5 million in lost product and sales revenue to victim-retailers.
In addition to orchestrating the overall FTID fraud scheme, at times, Bergwall purchased merchandise for himself and later submitted fraudulent tracking information to the Victim Company, prompting full refunds from victim-retailers. For example, during the course of the conspiracy, he did so with regard to a $41,000 Rolex President Day-Date watch, a $600 TeamGee H2O Electric Skateboard, a $350 Samsung 43-inch Smart UHD TV, and an $80 pair of Reebok shoes.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations Tampa, with valuable assistance from Homeland Security Investigations Miami. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
Download IndictmentU.S. Attorney’s Office Reaches Resolution with Local Counseling Center that Failed to Provide a Patient who is Deaf with Free Sign Language InterpreterRead the Press Release
DETROIT – The United States Attorney’s Office for the Eastern District of Michigan has reached a resolution with Stepping Stones Counseling Center PLLC, a local therapy practice, regarding a disability discrimination complaint. The Complainant, who is deaf and whose primary language is American Sign Language (ASL), alleged the practice initially dismissed her as a patient and later failed to provide her with equal access to its services because of her need for ASL interpretation services, in violation of the Americans with Disabilities Act (ADA).
Denying an individual the opportunity to participate in or benefit from services offered by a place of public accommodation, such as a counseling office, is one form of discrimination prohibited by the ADA. The ADA requires places of public accommodation to ensure effective communication with all individuals, regardless of any disabilities they may have, who seek to participate in or benefit from their services. With very limited exceptions, the ADA requires places of public accommodation to take necessary measures to ensure that communication with its customers is effective—this can include providing auxiliary aids and services such as certified ASL interpreters, at no cost to the customer.
“It is imperative that individuals with disabilities do not encounter unnecessary barriers to health care resources, especially mental health services,” said U.S. Attorney Dawn N. Ison. “Effective communication is necessary to provide a supportive and constructive counseling environment for individuals who are deaf or hard of hearing, and my office is committed to ensuring that such communication is provided as required by the law.”
Stepping Stones Counseling Center agreed to update its policies and training materials to ensure compliance with the ADA and to make a compensatory payment to the Complainant. In addition, the counseling center must train its staff on the ADA and develop and implement an anti-discrimination policy.
The investigation was led by Assistant U.S. Attorneys Michael El-Zein and Shannon Ackenhausen, of the Civil Rights Unit of the U.S. Attorney’s Office.
The full and fair enforcement of the ADA is a priority of the U.S. Attorney’s Office. The Civil Rights Unit was established in 2010, with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of the agreement, please visit https://www.justice.gov/usao-edmi/programs/civil-rights. Information about the Justice Department’s Barrier-Free Health Care Initiative to ensure that people who have disabilities, including those who are deaf or hard of hearing, have equal access to medical services is available at www.ada.gov/usao-agreements.htm.
Individuals who believe they have been subjected to discrimination or experienced a civil rights violation can submit a complaint with the U.S. Attorney’s Office by email at [email protected] or by phone at (313) 226-9151. Complaints can also be submitted to the Civil Rights Division through its complaint portal.
Two Men Charged with Orchestrating $7 Million Investment Fraud SchemeRead 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 that DERRICK HODGE and ISAAC BRIGGS III have been charged with running an investment fraud scheme through which they defrauded investors of approximately $7 million and misappropriated over $1.5 million of investor funds for personal use. HODGE and BRIGGS III were arrested today. BRIGGS III will be presented today in the U.S. District Court for the Southern District of New York, and HODGE will be presented today in the U.S. District Court for the Eastern District of Louisiana.
U.S. Attorney Damian Williams said: “As alleged, Derrick Hodge and Isaac Briggs III solicited millions of dollars of victim investments based on false promises of outsized returns. Instead of using those funds to generate profits for investors, as promised, Hodge and Briggs III allegedly took those investments for themselves, using investor funds to pay for personal travel, entertainment, and luxury fashion purchases. As we’ve shown time and time again, this Office will be tireless in prosecuting those who misappropriate investor funds to line their own pockets.”
FBI Assistant Director in Charge James Smith said: “For more than three years, Hodge and Briggs allegedly misled and deceived their victims out of more than seven million in investment funds, which they used in part for their own personal expenses. Investment fraud schemes not only can ruin a victim’s life savings, but also erode the public’s faith in our financial institutions. The FBI will continue to ensure that unscrupulous actors attempting to swindle investors are brought to justice.”
As alleged in the Complaint:[1]
From at least October 2020 through at least in or about November 2023, DERRICK HODGE and ISAAC BRIGGS III operated an investment fraud scheme that defrauded at least seven victims of at least $7 million. HODGE and BRIGGS III operated this fraudulent scheme through their operation of the Heritage Integrity Investment Trust (“HIIT”). HODGE and BRIGGS III falsely represented that victim funds would be invested in HIIT’s private placement trading program that would provide a return of five times the initial investment.
HODGE and BRIGGS III did not invest victim funds in any trading program. Instead, HODGE and BRIGGS III transferred their victims’ investments through intermediary accounts to their personal accounts and used them to make payments for personal expenses such as food, travel, entertainment, and luxury goods.
* * *
HODGE, 52, of Avondale, Louisiana, and BRIGGS III, 52, of Somerset, New Jersey, are each charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years in prison. BRIGGS III is also charged with one count of aggravated identity theft, which carries a statutory mandatory penalty of two years in prison, which must run consecutively to any other prison term.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being supervised by the Office’s General Crimes Unit. Assistant U.S. Attorney William C. Kinder is in charge of the prosecution.
The charges contained in the Complaint 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 Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two MS-13 Gang Members Sentenced for Murder ConspiracyRead the Press Release
Two La Mara Salvatrucha (MS-13) gang members were sentenced for conspiracy to commit murder in aid of racketeering in connection with their participation in the Weedams Locos Salvatrucha (WLS) clique of the MS-13 gang.
Endy Arturo Gaitan Campos, aka Clandestino, 30, of Hyattsville, Maryland, was sentenced yesterday to 10 years in prison, and Jorge Isaac Argueta Chica, aka Timido and Enano, 23, of Gaithersburg, was sentenced last week to six years in prison.
According to court documents, MS-13 is an international criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating throughout the United States. MS-13 members are organized in “cliques,” smaller groups that operate in a specific city or region, and are required to commit acts of violence, both to maintain membership and discipline within the gang and against rivals. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. MS-13 members earn promotions and improved standing within the gang for participating in attacks on rival gang members, often at the direction of MS-13 leadership.
On Aug. 8, 2020, Campos and other WLS members, including WLS leader Brayan Alexander Torres and Franklyn Edgardo Sanchez, agreed to murder Victim-4, who was suspected of cooperating with law enforcement and with whom Sanchez had a financial dispute. Campos told another MS-13 member that he would have to help commit the murder. Campos then drove Torres, Sanchez, and other WLS members to a wooded area nearby and dropped them off. Sanchez was armed with a revolver, and Torres gave a second revolver to the MS-13 member Campos had told to help in the murder, instructing that person to shoot first when Victim-4 arrived. When Victim-4 arrived, Sanchez and the other MS-13 member each fired multiple shots at Victim-4. Sanchez then pistol-whipped and stabbed Victim-4, and Torres also stabbed Victim-4. After Torres and other WLS members dragged Victim-4’s body to a stream and left it there, Campos drove the MS-13 members back to Torres’s house, where other gang members, including Argueta Chica and Agustino Eugenio Rivas Rodriguez, were waiting.
As he was leaving the woods, Sanchez noticed he was bleeding. To prevent the discovery of DNA or other evidence on the body and to hinder the investigation and prosecution of Victim-4’s murder, Torres called other WLS members and ordered them to bring shovels to bury Victim-4’s body. WLS members loaded shovels into Campos’s car, and Campos drove them, including Argueta Chica and Rivas Rodriguez, to the wooded area. WLS members then dug a hole and buried Victim-4’s body. Law enforcement later recovered the body with a bullet wound to the head.
Argueta Chica also participated in the collection of extortion payments, or “rents,” from at least two extortion victims on behalf of WLS, knowing that the victims making extortion payments did so under the threat of death or bodily injury by members of WLS.
Torres and Sanchez were each sentenced to 28 years in prison, and Rivas Rodriguez was sentenced 16 years in prison for their roles in the racketeering conspiracy.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Erek L. Barron for the District of Maryland, Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office, Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore, and Chief Malik Aziz of the Prince George’s County Police Department made the announcement.
The FBI, HSI, and Prince George’s County Police Department investigated the case, with assistance from U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and the Montgomery County Police Department.
Trial Attorney Christopher Taylor of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Joel Crespo for the District of Maryland prosecuted the case.
Two Indicted for Conspiracy Involving Manufacturing of Counterfeit Pills Containing FentanylRead the Press Release
BOSTON – Two North Shore men have been indicted by a federal grand jury in Boston for their alleged roles in a conspiracy involving the distribution and manufacturing of counterfeit pills containing fentanyl and other controlled substances.
Elmidio Crisostomo, 28, of Lynnfield, and David Depena, 30, of Lynn, were indicted on one count each of conspiracy to distribute and to possess with intent to distribute controlled substances. Both men were previously arrested and charged by complaint in June 2023.
It is alleged that Crisostomo and Depena used an apartment in Lynn to manufacture counterfeit pills containing fentanyl and other controlled substances. Crisostomo and Depena then allegedly distributed thousands of these pills to customers in towns including Malden and Revere. It is further alleged that, during a search of the Lynn apartment in June 2023, a large hand-crank-style press used for manufacturing pills as well as multiple kilograms of pills and powder containing fentanyl and other controlled substances were recovered.
The charge of conspiracy to distribute controlled substances provides for a maximum sentence of 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance was provided by the Lynn Police Department and the Revere Police Department. Assistant U.S. Attorney Samuel R. Feldman of the Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Twenty-Nine-Year-Old Pascua Yaqui Man Sentenced to 120 Months in Prison for Molesting Fellow Tribal Member 10 Years EarlierRead the Press Release
TUCSON, Ariz. – Orlando Miguel Valenzuela, 29, of Tucson, was sentenced on Monday by United States District Judge Cindy K. Jorgenson to 10 years in prison, followed by lifetime supervised release. Valenzuela pleaded guilty to Abusive Sexual Contact on January 23, 2023.
In August 2019, the victim reported several instances of sexual abuse committed by Valenzuela that had occurred between 2013-2014, when the victim was under 12 years old and Valenzuela was over 18 years old. Valenzuela was located by law enforcement and indicted in April 2022. When Valenzuela is released from prison, he will be required to register as a sex offender for the rest of his life.
The Federal Bureau of Investigation and the Pascua Yaqui Police Department conducted the investigation in this case. Assistant U.S. Attorney, Micah Schmit, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: 22-CR-0682-TUC-CKJ
RELEASE NUMBER: 2023-173_Valenzuela# # #
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.Tulsa Couple Indicted for Drug Conspiracy Involving Poppy Seeds Coated in Opium LatexRead the Press Release
A Tulsa couple were indicted for an opium poppy seed drug conspiracy resulting in the death of Utah woman.
Brandon David McCarthy, 37, and spouse, Rachel Christine McCarthy, 34, of Tulsa, are charged with Drug Conspiracy; Distribution of Morphine, Codeine, and Thebaine; Distribution of Morphine, Codeine, and Thebaine Resulting in Death; Possession of Morphine, Codeine, and Thebaine with Intent to Distribute; Distribution of Material; Possession of Materials with Intent to Distribute; Maintaining a Drug Involved Premises; Money Laundering Conspiracy; Engaging in Monetary Transactions of Proceeds Derived from a Specified Unlawful Activity.
According to the multi count criminal indictment, Brandon David McCarthy and Rachel Christine McCarthy (“McCarthys”) are owners of Lone Goose Bakery, an online retailer of unprocessed poppy seeds coated in opium latex. Opium latex is a byproduct of the opium poppy plant that contains opiate alkaloids, including morphine, codeine, and thebaine, scheduled II controlled substances.
From June 2017 through November of 2020, the McCarthys illegally sold unprocessed poppy seeds coated in opium latex to opiate users. Lone Goose Bakery purchased bulk quantities of unprocessed poppy seeds coated in opium latex and repackaged the seeds for resale across the United States. It is alleged that the McCarthys produced books and videos about poppy seed tea made with unprocessed poppy seeds coated in opium latex. These materials were marketed on the internet and social media. The tea was promoted to help reduce pain, reduce anxiety, improve sleep, and lower blood pressure. Additionally, the tea was advertised as an anti-diarrheal with beneficial vitamins and minerals. The indictment alleges that a single dose of poppy seed tea made with Lone Goose Bakery unprocessed poppy seeds coated in opium latex could expose a consumer up to approximately 1,200 milligrams of morphine.
The majority of buyers of Lone Goose Bakery’s unprocessed poppy seeds coated in opium latex were individuals purchasing the product for personal consumption. It is alleged that Lone Goose Bakery’s poppy seeds were not processed to an edible food grade standard. In Dec. of 2018, a Utah woman consumed tea made from Lone Goose Bakery’s unprocessed poppy seeds coated in opium latex, overdosed, and died.
From November 2017 through November 2020, the McCarthys received over $12 million in payments from the sale of unprocessed poppy seeds coated in opium latex. Court records show that the proceeds were later spent on real estate, property improvements, art, vehicles, and precious metals, including gold and silver coins.
If convicted, Brandon and Rachel McCarthy face up to life in prison.
The Drug Enforcement Administration is investigating the case. Assistant U.S. Attorney Reagan V. Reininger is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trafficker sentenced to prison for smuggling $1.5M worth of cocaine in produce boxesRead the Press Release
McALLEN, Texas – A 50-year-old Mexican national has been ordered to federal prison for possession with intent to distribute 88.5 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Faustino Perez Luna pleaded guilty May 23.
U.S. District Judge Randy Crane has now ordered Luna to serve 70 months in federal prison. In handing down the sentence, the court noted it was a serious offense and involved a lot of narcotics.
On Nov. 13, 2022, Perez Luna was driving a tractor trailer loaded with cocaine. The drugs were the priority load of a known drug trafficking organization.
Luna approached the Falfurrias checkpoint and claimed to be headed to Atlanta to drop a load of produce. However, a K-9 soon alerted to the presence of narcotics within the vehicle. Authorities referred him to secondary inspection where they discovered the cocaine concealed between produce boxes on the tractor trailer.
The drugs weighed approximately 88.5 kilograms with an estimated street value of $1.5 million.
From March 2022 to Nov. 13, 2022, law enforcement arrested several others in connection with this drug trafficking organization. It operated in the lower Rio Grande Valley transporting either narcotics, guns or money.
The investigation led to the discovery of the priority load – the 88.5 kilograms Luna had transported. It was intended for Atlanta, Georgia.
Luna will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Eric D. Flores prosecuted the case.