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9 November 2023
Local woman admits to threatening federal judgeRead the Press Release
HOUSTON – A 50-year-old Houston resident has pleaded guilty to interstate communications with a threat to kidnap or injure, announced U.S. Attorney Alamdar S. Hamdani.
On Sept. 1, 2022, Tiffani Shea Gish aka Evelyn Salt left three threatening voicemails on the chamber’s telephone of a U.S. district judge from Florida. In the messages, Gish claimed to be a member of several military combat units, trained and familiar with weapons of war.
In the first message, she said the victim was marked for assignation and would get a bullet in the head. Gish then reiterated the same threat in two subsequent messages and used expletives when adding that she had ordered snipers and a bomb to the victim’s house and would throw a bullet to the victim’s head.
“As prosecutors, our mission is to always protect the rule of law, and that necessarily means protecting the judges who interpret and apply the law,” said Hamdani. “Tiffani Gish’s threats to assassinate a federal judge have no place in a republic whose strength comes from the rule of law. As a result, my office and its public servants have no tolerance for those like Gish who threaten judges and in turn seek to undermine our system of government.”
U.S. District Judge David Hittner accepted the plea and set sentencing for Feb. 9, 2024. At that time, Gish faces up to five years imprisonment and a possible $250,000 maximum fine. She has been and will remain in custody pending that hearing.
The FBI and U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Steven Schammel prosecuted the case.
Justice Department Secures Agreement with South Dakota Hotel and Sports Lounge to Resolve Allegations of Discrimination Against Native AmericansRead the Press Release
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.
View the consent decree here.
Justice Department Secures Agreement with Cox Communications to Resolve Claims the Company Used a Georgia Tech Recruiting Platform to DiscriminateRead the Press Release
Marking 37 years since Congress passed the anti-discrimination provision of the Immigration and Nationality Act (INA), the Justice Department announced today that it secured an agreement with Cox Communications Inc., a Georgia-based provider of residential and business telecommunication services to resolve claims of discrimination.
Specifically, this agreement resolves the department’s determination that Cox Communications violated the INA by using a Georgia Institute of Technology (Georgia Tech) on-campus recruiting platform to post dozens of discriminatory job advertisements that unlawfully excluded students and alumni based on their citizenship status. The department previously secured agreements with 30 other employers to resolve similar claims — 16 in June 2022, four in September 2022 and another 10 in May 2023 — and with Georgia Tech in August 2023.
“With this latest resolution, the Justice Department has now held Georgia Tech and 31 employers accountable for their roles in unlawful hiring discrimination based on students’ citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “These agreements have secured more than $2.5 million in civil penalties and demonstrate the department’s commitment to ensuring that college students and graduates embarking on their careers have a fair chance to compete for jobs.”
The department started its investigations after a Georgia Tech student, who was then a lawful permanent resident, complained about a U.S. citizens-only internship advertisement on Georgia Tech’s on-campus job recruitment platform. The department’s investigation of the student’s complaint revealed dozens of other discriminatory advertisements on the platform, including several posted by Cox Communications. The department found that Cox Communications posted numerous job advertisements that unlawfully excluded workers granted asylum or refugee status, lawful permanent residents and, in one instance, U.S. citizens. The department also determined that Cox Communications used features of Georgia Tech’s online platform to deter and automatically exclude qualified students from applying because of their citizenship status.
Under this agreement, Cox Communications is required to pay a civil penalty of $459,895 and to train its recruiting staff on the INA’s anti-discrimination provision. The agreement also prohibits Cox Communications from including specific citizenship or immigration status designations in their campus job postings unless the restrictions are legally required.
This agreement is part of the department’s efforts to combat discrimination related to artificial intelligence and automated systems, as described in the Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence.
The INA’s anti-discrimination provision was passed as part of the Immigration Reform and Control Act in November 1986. This law prohibits employers and recruiters from limiting jobs based on citizenship or immigration status unless required by a law, regulation, executive order or government contract. The INA protects those granted asylum or refugee status, recent lawful permanent residents, U.S. citizens and U.S. nationals from citizenship status discrimination in hiring, firing and recruitment or referral for a fee.
Learn more about IER’s work and how to get assistance through this brief video. IER’s website has more information on how employers can avoid discriminating based on citizenship status when hiring and recruiting. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a live webinar or watch an on-demand presentation; or visit IER’s English and Spanish websites. Subscribe for email updates from IER.
View the settlement agreement here.
Justice Department Secures $25 Million Landmark Agreement with Apple to Resolve Employment Discrimination Allegations Based on Citizenship StatusRead the Press Release
The Justice Department announced today that it has secured a landmark agreement with Apple Inc. (Apple) to resolve allegations that Apple illegally discriminated in hiring and recruitment against U.S. citizens and certain non-U.S. citizens whose permission to live in and work in the United States does not expire.
Under the agreement, Apple is required to pay up to $25 million in backpay and civil penalties, the largest award that the department has recovered under the anti-discrimination provision of the Immigration and Nationality act (INA).
“Creating unlawful barriers that make it harder for someone to seek a job because of their citizenship status will not be tolerated,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution reflects the Civil Rights Division’s commitment to ending illegal discriminatory employment practices.”
The settlement agreement resolves the department’s determination that Apple violated the INA’s anti-discrimination requirements during Apple’s recruitment for positions falling under the permanent labor certification program (PERM). The PERM program is administered by the U.S. Department of Labor and the U.S. Department of Homeland Security. It allows employers to sponsor workers for lawful permanent resident status in the United States after completing recruitment and meeting other program requirements. Any U.S. employer that utilizes the PERM program cannot illegally discriminate in hiring or recruitment based on citizenship or immigration status.
The department’s investigation, which started in February 2019, found that Apple engaged in a pattern or practice of citizenship status discrimination in recruitment for positions it hired through PERM, and that the company’s unlawful discrimination prejudiced U.S. citizens, U.S. nationals, lawful permanent residents, and those granted asylum or refugee status. These less effective recruitment practices deterred protected workers from applying to positions that Apple preferred to fill instead with PERM beneficiaries.
Specifically, the department’s investigation found that Apple did not advertise positions Apple sought to fill through the PERM program on its external job website, even though its standard practice was to post other job positions on this website. It also required all PERM position applicants to mail paper applications, even though the company permitted electronic applications for other positions. In some instances, Apple did not consider certain applications for PERM positions from Apple employees if those applications were submitted electronically, as opposed to paper applications submitted through the mail. These less effective recruitment procedures nearly always resulted in few or no applications to PERM positions from applicants whose permission to work does not expire.
Pursuant to the $25 million agreement, Apple is required to pay $6.75 million in civil penalties and establish an $18.25 million back pay fund for eligible discrimination victims. The agreement also requires Apple to ensure that its recruitment for PERM positions more closely matches its standard recruitment practices.
Specifically, Apple will be required to conduct more expansive recruitment for all PERM positions, including posting PERM positions on its external job website, accepting electronic applications, and enabling applicants to PERM positions to be searchable in its applicant tracking system. Apple has implemented some of these measures after the department opened its investigation. Additionally, Apple will train its employees on the INA’s anti-discrimination requirements and be subject to departmental monitoring for the three-year period of the agreement.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the INA’s anti-discrimination provision. This law prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation. Learn more about IER’s work and how to get assistance through this brief video or watch an on-demand presentation. Find more information on how employers can avoid discrimination when hiring and recruiting on IER’s website.
Workers who have questions about this settlement can contact IER at 1-888-473-3897 or [email protected]. The public can get more information about how to get help from IER by visiting IER’s English and Spanish websites. Subscribe for email updates from IER.
View the settlement agreement here.
View Attachment A here.
Justice Department Files Statement of Interest in Case on Right to Travel to Access Legal AbortionsRead the Press Release
The Justice Department filed a statement of interest today in two consolidated lawsuits seeking to protect the right to interstate travel, including the right to travel to another state to obtain an abortion that is legal in the destination state. The statement of interest explains that the Constitution protects the right to travel across state lines and engage in conduct that is lawful where it is performed and that states cannot prevent third parties from assisting others in exercising that right. The statement argues that the Alabama Attorney General’s threatened prosecutions of individuals for providing assistance to people seeking lawful out-of-state abortions are therefore unconstitutional. The cases are Yellowhammer Fund v. Marshall and West Alabama Women’s Center, et al., v. Marshall.
“As I said the day Dobbs was decided, bedrock constitutional principles dictate that women who reside in states that have banned access to comprehensive reproductive care must remain free to seek that care in states where it is legal,” said Attorney General Merrick B. Garland. “This filing demonstrates the Justice Department’s commitment to defending the constitutional right to travel and to protecting reproductive freedom under federal law.”
“The Reproductive Rights Task Force has been scrutinizing state laws and enforcement actions that threaten to infringe on federal protections of reproductive rights, including illegal attempts to prevent interstate travel,” said Associate Attorney General Vanita Gupta. “Today’s filing is just one part of the Justice Department’s ongoing work to use all available tools to safeguard reproductive freedoms protected by the Constitution and federal law.”
“Alabama may not infringe the constitutional right to travel in order to meet its policy goals,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The Civil Division will continue to assert the interests of the United States.”
The Department’s statement of interest explains that the right to travel from one state to another is firmly embedded in the Supreme Court’s jurisprudence and the Constitution. It notes that Justice Kavanaugh — one of the five justices who formed the majority in Dobbs v. Jackson Women’s Health Organization — has explained that the question of whether a State may “bar a resident of that State from traveling to another State to obtain an abortion” is “not especially difficult” — “the answer is no based on the constitutional right to interstate travel.” The Department’s filing also explains that the Supreme Court has held that states may not prevent third parties from assisting others in exercising their right to travel. Further, the statement of interest explains that because of these precedents, the Alabama Attorney General may not criminalize third-party assistance for interstate travel, particularly where the sole purpose of those prosecutions is to impede individuals’ exercise of their constitutional rights.
The plaintiffs in these cases are organizations and individuals within Alabama seeking to facilitate individuals’ access to legal, out-of-state abortions. They brought suit in response to the Alabama Attorney General’s argument that he may criminally prosecute individuals within Alabama who assist others in obtaining legal, out-of-state abortions. Specifically, the Alabama Attorney General contends that providing assistance within Alabama to someone seeking an out-of-state abortion constitutes a criminal conspiracy, regardless of whether the abortion is legal in the state where it is performed, as long as the abortion would be illegal if performed within Alabama. Plaintiffs have challenged the Alabama Attorney General’s threatened conspiracy prosecutions on a variety of grounds, including as being inconsistent with the Constitution’s right to travel.
Following the Supreme Court’s decision in Dobbs overturning Roe v. Wade, the Justice Department has worked with commitment and urgency to defend the reproductive freedoms that are protected by federal law. The Reproductive Rights Task Force, led by Associate Attorney General Gupta, consists of senior officials and dedicated staff from across a dozen Department components who are working daily to address complex and widespread threats to reproductive health in the wake of Dobbs. Since the Task Force was formed, one of its core responsibilities has been to assess state and local legislation and enforcement actions that threaten to impair women’s right to seek reproductive care in states where it is legal and to coordinate appropriate federal government responses to those actions, including proactive and defensive legal action where appropriate. Additional information on the work of the Task Force can be found at www.justice.gov/reproductive-rights.
Statement of InterestJustice Department Files Lawsuit and Proposed Consent Decree to Prohibit Koch Foods from Imposing Unfair and Anticompetitive Termination Penalties in Contracts with Chicken GrowersRead the Press Release
The Justice Department filed a civil lawsuit under the Sherman Act and Packers and Stockyards Act today against Koch Foods Incorporated (Koch), the fifth largest poultry processor in the United States. The complaint alleges that Koch anticompetitively and unfairly required chicken farmers, or growers, to pay Koch a termination penalty to switch from working for Koch to a rival chicken processor. At the same time, the department filed a proposed consent decree that would prohibit Koch from penalizing growers for switching processors and require Koch to return certain expenses, fees and penalties it unlawfully imposed on growers who tried to work for other chicken processors.
“Antitrust and competition laws protect growers’ right to benefit from competition for their products, their services and their labor,” said Deputy Assistant Attorney General Michael Kades of the Justice Department’s Antitrust Division. “This enforcement action marks another important step in the division’s renewed partnership with the Department of Agriculture to promote free and fair competition and reinvigorate enforcement of the Packers and Stockyards Act.”
“The Packers and Stockyards Act stands for fairness, and that’s what this enforcement action today delivers,” said Senior Advisor for Fair and Competitive Markets Andy Green of the Department of Agriculture (USDA). “This action to protect growers’ right to compete signals the joint commitment of the USDA and Justice Department to open competitive markets.”
The complaint alleges that Koch, which operates processing facilities in Alabama, Georgia, Mississippi and Tennessee, deterred farmers from switching to other processors by requiring them to repay a substantial share of their income as a penalty if they terminated their contract. As alleged in the complaint, Koch’s termination penalty, which varies across chicken growers, amounted to more than half of most growers’ total annual take-home income and sometimes more than one year’s entire take-home earnings. Koch used the threat of the termination penalty to discourage growers from switching to Koch’s competitors and sued or threatened to sue more than a dozen family farmers who tried to switch to a Koch competitor.
Accordingly, the termination penalty operated as an anticompetitive, de facto noncompete clause, in violation of the Sherman Act. The penalty provision is also an unfair practice or device in violation of the Packers and Stockyards Act, a landmark statute passed in 1921 that protects livestock and poultry producers.
At the same time, the Antitrust Division filed a proposed consent decree to address its competition concerns. If approved by the court, the proposed consent decree would require Koch to:
- Inform all current growers with contracts containing a termination penalty provision that Koch will not enforce the provision;
- Reimburse growers for all termination penalty payments and out-of-pocket legal expenses incurred as a result of Koch enforcing the termination penalty;
- Refrain from including a termination penalty obligation in any grower contracts and from taking any steps to collect any termination penalty payments for the next seven years;
- Refrain from retaliating against, intimidating or harassing any grower who is involved in any dispute over a termination penalty or who cooperated with the Justice Department or USDA in their investigations of Koch’s termination penalty practices; and
- Meet certain reporting and compliance obligations including an annual certification for the next seven years that Koch is complying with the proposed final judgment.
Today’s lawsuit and proposed consent decree are the second recent Packers and Stockyards Act enforcement action referred to the Justice Department by the USDA. In June, the U.S. District Court for the District of Maryland entered a consent decree to resolve an action alleging that the “tournament system” used by processor Wayne-Sanderson Farms to compensate chicken farmers violated the Packers and Stockyards Act.
As required by the Tunney Act, the proposed consent decree, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed consent decree during a 60-day comment period to Chief, Civil Conduct Task Force, Antitrust Division, Department of Justice, 450 Fifth Street NW, Suite 8600, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Northern District of Illinois may enter the final judgment upon finding it is in the public interest.
Anyone with information about anticompetitive conduct in agricultural industries or any other violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or [email protected]. Information about anticompetitive practices in livestock and poultry markets can also be submitted to the USDA’s and Justice Department’s Agricultural Markets Enforcement Partnership at www.farmerfairness.gov.
View the complaint here.
View the memo here.
Jamaican National Sentenced for Role in Fraudulent Sweepstakes Scheme that Targeted Elderly VictimsRead the Press Release
A Jamaican national was sentenced today 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.
“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.”
“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 for the Middle District of Pennsylvania. “Working together with our skilled and dedicated law enforcement partners, Oakley was held accountable for his crimes.”
“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.
Iowa Man Sentenced to 10 Years in Federal Prison for Meth ConspiracyRead the Press Release
Timothy Steinbeck, age 47 from Terril, Iowa, plead guilty on April 19, 2023, in federal court in Sioux City, to conspiracy to distribute methamphetamine.
Steinbeck admitted that from August 2021 through June 2022, he and others were involved in a conspiracy to distribute nearly six pounds of methamphetamine in Northwest Iowa. Evidence further showed that Steinbeck distributed methamphetamine to an individual cooperating with law enforcement on three separate occasions. On June 15, 2022, law enforcement searched Steinbeck’s residence in Royal, Iowa, and seized additional methamphetamine. That same day, firearms were seized from a relative’s home which Steinbeck had moved in an attempt to conceal from law enforcement.
Steinbeck was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Steinbeck was sentenced to 120 months’ imprisonment. Steinbeck must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Steinbeck is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Iowa Department of Narcotics Enforcement, Clay County Sheriff’s Office, Spencer Police Department, O’Brien County Sheriff’s Office, Estherville Police Department, Osceola County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Iowa DCI Laboratory, Clay County Attorney’s Office, Iowa State Patrol, and Iowa State Patrol Tactical Teams.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-4050. Follow us on Twitter @USAO_NDIA.
Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that on November 7, 2023 HUGO BRIAN FUENTAS-EGUIGURENS (“FUENTAS-EGUIGURENS”), age 27, plead guilty on November 7, 2023 to illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
According to court documents, FUENTAS-EGUIGURENS reentered the United States after being previously deported on April 26, 2019. On March 31, 2023, FUENTES-EGUIGURENS was arrested by the Jefferson Parish Sheriff’s Office on March 31, 2023 and found to be unlawfully present in the United States by United States Immigration and Customs Enforcement. It was also discovered that FUENTES-EGUIGURENS had previous convictions for simple escape, burglary and resisting arrest by using a false identification.
FUENTAS-EGUIGURENS faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Hartford Man Caught with Drugs and Ghost Gun in Bristol Sentenced to 30 Months in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that TRAEVAUGHNN MORRISON, 27, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 30 months of imprisonment, followed by four years of supervised release, for distributing fentanyl and crack while armed with a ghost gun.
According to court documents and statements made in court, on April 5, 2022, members of the DEA’s Hartford Task Force made a controlled purchase of fentanyl and crack cocaine from Morrison in Bristol. After the drug sale, investigators followed Morrison as he drove his car and then parked in a condominium parking lot, where Morrison was taken into custody. At the time of Morrison’s arrest, investigators found in his car additional quantities of fentanyl and crack, and a Polymer80 handgun (“ghost gun”) with an extended magazine loaded with 21 rounds of ammunition.
Subsequent analysis of the firearm determined that it had been used in two shooting incidents in 2021 in Waterbury and Hartford, where two individuals were injured. The government has no evidence that Morrison participated in either of the shootings.
Morrison’s criminal history includes convictions for felony drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Morrison has been detained since his arrest. On August 2, 2023, he pleaded guilty to possession with intent to distribute, and distribution of, cocaine base (“crack”) and fentanyl.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, and Windsor Locks Police Departments. This case was prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Gulfport Man Pleads Guilty to Possessing a Stolen FirearmRead the Press Release
Gulfport, Miss. – A Gulfport man pleaded guilty to possessing a stolen firearm.
According to court documents, Makee McLemore, 20, of Gulfport, was arrested following a Gulfport Police Department investigation into a string of vehicle burglaries resulting in multiple stolen guns. Officers determined that McLemore was a suspect in the vehicle burglaries. He was arrested and a search warrant was executed at his residence. McLemore subsequently admitted to participating in some of the vehicle burglaries and to stealing a Sig Sauer firearm. McLemore gave officers the location of the stolen firearm at his residence.
On September 19, 2023, a federal grand jury returned an indictment charging McLemore with possession of a stolen firearm.
McLemore is scheduled to be sentenced on March 7, 2024. He faces a maximum sentence of 10 years imprisonment. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Special Agent Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
This case was investigated by the ATF along with assistance from the Gulfport Police Department.
The case is being prosecuted by Assistant U.S. Attorney Lee Smith.
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.
Greenbrier County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Rance Allen Mitchem, 41, of Lewisburg, pleaded guilty today to possession with intent to distribute 5 grams or more of methamphetamine.
According to court documents and statements made in court, on July 27, 2022, law enforcement officers executed a search warrant at a Lewisburg apartment where Mitchem was staying. Officers seized approximately 38 grams of methamphetamine, scales, packaging materials, and a Taurus model G2S .40-caliber handgun. Mitchem admitted to possessing the seized methamphetamine and an additional 93.1 grams of methamphetamine that officers found when Mitchem told them it was in his parked vehicle.
Mitchem further admitted that he intended to distribute the methamphetamine and use some of it himself. Mitchem also told officers that he had distributed quantities of methamphetamine at least once a week for approximately five months.
Mitchem is scheduled to be sentenced on March 8, 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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Greenbrier Valley Drug and Violent Crime Task Force.
United States District Judge Frank W. Volk 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. 5:23-cr-161.
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Great Falls man fined $70,000 for scheme to defraud MedicaidRead the Press Release
GREAT FALLS — A Great Falls man who admitted to lying about his income to receive more than $75,000 in Medicaid health care benefits was fined $70,000 and sentenced to three years of probation today, U.S. Attorney Jesse Laslovich said.
Dustin Tempel, 39, pleaded guilty in June to health care fraud.
Chief U.S. District Judge Brian M. Morris presided. The court also ordered $75,493 restitution.
In court documents, the government alleged that during an investigation of Temple’s mother, Lynn Temple, for fraudulently inflating construction costs while building a home for a client in Great Falls, investigators learned that Tempel had underreported his income by more than $300,000 during a five-year period. During the period of underreporting, Temple applied for Medicaid, again underrepresenting his actual income. As a result, Temple received $75,493 from Medicaid that he was not entitled to receive from 2017 to 2020. Medicaid is a federal health care benefit program that provides health coverage to millions of Americans, including eligible low-income adults, children, pregnant women and elderly adults with disabilities. Lynn Temple, who was the finance manager for William Tempel Construction, was sentenced in April 2022 to 14 months in federal prison and ordered to pay $415,221 restitution for conviction on wire fraud.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case. The FBI conducted the investigation.
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Fulton County Man Indicted for Distribution of Child PornographyRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin Heidel, age 41, of Fulton County, Pennsylvania, was indicted by a federal grand jury on charges of distribution and possession of child pornography.
According to United States Attorney Gerard M. Karam, the indictment alleges that on January 19, 20, and 27, 2023 and April 13, 2023, Heidel distributed child pornography in Fulton County. The indictment also alleges that Heidel possessed child pornography from August 2022 to May 2023.
The case was investigated by Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Office of Attorney General, the Huntingdon Borough Police Department, and the Huntingdon County District Attorney’s Office. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
The maximum penalty under federal law for these offenses is 20 years, with a mandatory minimum sentence of five years, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Former postal worker pleads guilty to attempted receipt of child pornographyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Michael Fratini, 38, of Dunkirk, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to attempted receipt of child pornography, which carries a mandatory minimum penalty of five years in prison and a maximum of 20 years.
Assistant U.S. Attorneys Aaron J. Mango and Franz M. Wright, who are handling the case, stated that Fratini used his cellular telephone to solicit nude photos and videos of the pre-pubescent daughters of a female acquaintance, whom he met in October 2021 through a dating application. After meeting in person, the female acquaintance did not hear from Fratini again for several months. In March 2022, they spoke over the telephone and Fratini told her that he had a mother/daughter fantasy. He then sent a follow-up text message asking for videos and/or pictures of her daughters to fulfill his fantasies. After receiving the text message, the female acquaintance filed a report with the Sheriff’s Office. At the direction of the Sheriff’s Office, she continued text message conversations with Fratini. On March 18, 2022, investigators surveilled Fratini leaving his workplace at the time, the U.S. Postal Service on Grant Street in Buffalo, and travel to an Amherst hotel where he was expecting to meet the female acquaintance. After arriving at the hotel, Fratini was taken into custody.
The plea is the result of an investigation by the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia and the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for March 18, 2024, at 9:30 a.m. before Judge Vilardo.
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Former State Employee Sentenced to 36 Months for Unemployment Insurance Fraud SchemeRead the Press Release
ALBANY, NEW YORK – Former New York State Department of Labor (NYSDOL) employee Wendell Giles, age 53, of Albany, was sentenced today to 36 months in prison for engaging in a fraudulent scheme to obtain more than $800,000 in unemployment insurance benefits by abusing his position with the NYSDOL.
The announcement was made by United States Attorney Carla B. Freedman; Alfred A. Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Jonathan Mellone, Special Agent in Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG).
As part of his previously entered guilty plea to conspiracy to commit mail fraud, Giles admitted that he and another former NYSDOL employee, Carl J. DiVeglia III, abused their state computer systems access to create and approve false unemployment insurance applications in 2020 and 2021, including applications for the federal Pandemic Unemployment Assistance (PUA) program.
Giles recruited relatives, friends and friends-of-friends to submit false benefits applications over the phone to DiVeglia after Giles had instructed them to lie in response to eligibility questions. Giles and DiVeglia then took a share of the benefits paid by NYSDOL on the false claims. Giles used his share to enrich himself, including by purchasing a three-wheeled motorcycle. In text messages, DiVeglia suggested a vanity license plate for Giles’s new vehicle, “TY PUA,” which Giles understood to mean “Thank You Pandemic Unemployment Assistance.” Giles responded, “Lol.” Giles had been employed as a Senior Employment Security Clerk, and DiVeglia as a Labor Services Representative.
Giles admitted responsibility for $826,530 in losses to pandemic-related UI benefits programs administered by the state. He has agreed to pay full restitution to NYSDOL. DiVeglia previously pled guilty to related charges and also agreed to pay restitution.
United States District Judge Glenn T. Suddaby also imposed a 2-year term of supervised release, to begin after Giles is released from prison. Judge Suddaby also ordered Giles to pay $826,530 in restitution to the State of New York and to forfeit a $100,000 money judgment to the United States.
The FBI and USDOL-OIG investigated this case, with assistance from the NYSDOL Office of Special Investigations. Assistant U.S. Attorneys Joshua R. Rosenthal and Joseph S. Hartunian prosecuted this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Shelby County Jailer Sentenced over Plan to Smuggle Narcotics into FacilityRead the Press Release
Memphis, TN – On Wednesday, November 8, 2023, a federal judge sentenced a former deputy jailer for possession of narcotics knowing that they would be distributed inside the county jail. Kevin G. Ritz, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
Kimberly Price, 31, of Memphis was sentenced to 14 months in federal prison for her role in arranging delivery of cocaine and fentanyl to inmates at the Shelby County Correctional Center. U.S. District Court Judge John T. Fowlkes, Jr. also ordered Price to serve two years of supervised release upon completion of her prison term. There is no parole in the federal system.
According to information presented in court, in September 2020, the FBI Tarnished Badge Task Force initiated an investigation into allegations that Price, a deputy jailer at the Shelby County Correctional Center, was smuggling narcotics into the facility to be distributed to inmates. An inmate cooperating with the investigators made contact with Price to request that Price purchase narcotics that would ultimately be smuggled into the jail by a third party and delivered to the inmate. Price agreed, and on October 16, 2020, delivered a bag of cocaine to a cooperating source in exchange for $1000. On November 4, 2020, Price met with the cooperator again and provided fentanyl pills in exchange for $1300.
On May 4, 2023, Price pled guilty to a two-count criminal information alleging possession with intent to distribute cocaine and possession with intent to distribute fentanyl.
United States Attorney Kevin Ritz thanked Assistant United States Attorney David Pritchard, who prosecuted this case, as well as law enforcement partners who investigated the case.
Former Resident of Cheswick, PA Sentenced to 48 Months in Prison for Conviction of Violating Federal Narcotics and Firearms LawsRead the Press Release
PITTSBURGH, PA - A former resident of Cheswick, PA, has been sentenced in federal court to 48 months of incarceration followed by four years of supervised release on his conviction of violating federal narcotics and firearms laws, United States Attorney Eric G. Olshan announced today.
United States District Judge Robert J. Colville imposed the sentence on Bill Rana, age 43.
In conjunction with the sentencing hearing, the Court was informed that the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, conducted a long-term investigation into drug-trafficking activity occurring in the Western District of Pennsylvania. Law enforcement identified several individuals, suspected at the time, of illegally distributing controlled substances, including cocaine and methamphetamine in Allegheny, Westmoreland, Erie, Fayette, and Washington Counties.
Investigators identified Rana, as a “fully patched” member of the Pagans Motorcycle Club and Sergeant of Arms for the Pittsburgh Chapter. Over the course of the conspiracy, Rana obtained and redistributed over one kilogram of cocaine and over 140 grams of methamphetamine from multiple sources of supply that Rana redistributed. Additionally, Rana’s residence was searched on December 8, 2020, and investigators seized a variety of ammunition, which Rana was precluded from possessing due to a prior felony conviction.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, the United States Postal Inspection Service, Drug Enforcement Administration, Allegheny County Sheriff’s Office, Pennsylvania State Police, and Pennsylvania Office of Attorney General Bureau of Narcotics Investigations for the investigation leading to the successful prosecution of Rana.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former President of Madison District Public Schools Board of Education Sentenced for Accepting Bribes from Local Contractor and Tax EvasionRead the Press Release
DETROIT – Albert Morrison was sentenced today to 45 months in federal prison after pleading guilty to accepting bribes from a local contractor and tax evasion, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan, Criminal Investigation Special Agent in Charge Charles Miller, Detroit Field Office, and John Woolley, Special Agent in Charge of the Department of Education, Office of Inspector General.
Morrison, age 62, was sentenced after pleading guilty before the Honorable Laurie Michelson to Conspiracy to Commit Federal Program Bribery from 2014 through 2018 and Tax Evasion.
Morrison was the elected President of the Madison District Public Schools Board of Education from 2012 through 2018. While Morrison was President, John David was one of the owners of a building maintenance and reconstruction company, Emergency Restoration that was awarded over $3.1 million maintenance and construction projects in the Madison District Public Schools. David, who was a long-time friend of Morrison, paid Morrison more than $561,000 in order to secure the work for the Madison District. Morrison spent the money from David on personal luxuries such as vacations in Florida and a boat slip.
To keep the payments secret from the school board and the community, Morrison denied having any financial ties to David or Emergency Restoration when publicly confronted at a Madison District school board meeting. Morrison also failed to disclose to State of Michigan auditors the payments he received from David.
Morrison did not declare to the IRS David’s payments as income in 2014, 2015, 2016, 2017, or 2018. By not declaring the payments to the IRS, Morrison avoided paying approximately $118,200 in taxes.
“Today’s sentence underscores our continued insistence that our trusted public officials hold themselves to the highest standards of integrity and honesty. It sends a clear message that when public officials break that trust, they will be held accountable,” said United States Attorney Dawn N. Ison. “This sentence ensures that school officials will put the interests of our children first and that those who accept bribes and evade paying taxes will answer for their crimes.”
“Today, Mr. Morrison is being held accountable for the crimes he committed as president of the Madison District Public School Board,” said Cheyvoryea, Special Agent in Charge of the FBI in Michigan. “We thank the IRS and Department of Education – Office of Inspector General for working alongside the FBI to investigate these allegations and expose Mr. Morrison’s corruption.”
“Today’s sentence sends a clear message that financial fraud by our public officials will not be tolerated, especially when it’s at the expense of the children in our communities,” said Internal Revenue Service – Criminal Investigation Special Agent in Charge Charles Miller, Detroit Field Office. “IRS-CI will continue to work with our federal and local partners to safeguard the financial future of our communities and our nation’s tax system.”
“Mr. Morrison abused his position of trust for personal gain, and with today’s action, will now be held accountable for cheating those he promised to serve – Madison’s school children and their families,” said John Woolley, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Midwestern Regional Office. "The OIG will continue to work with our law enforcement partners to aggressively pursue those who misappropriate education funds for their own selfish purposes. Our nation’s students and taxpayers deserve nothing less.”
The investigation of this case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Department of Education. It was prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, Karen Reynolds, and Gjon Juncaj.
Former Malibu Resident Sentenced to More Than 15 Years in Prison for Conning Investors with Bogus Promises of Discounted Alibaba IPO SharesRead the Press Release
LOS ANGELES – A former Malibu resident was sentenced today to 188 months in federal prison for defrauding several individuals out of more than $3 million with bogus claims that he had access to stock shares of Alibaba prior to its initial public offering.
Frank Harold Rosenthal, 48, formerly of Malibu but most recently of New York City, was sentenced by United States District Judge Fernando L. Aenlle-Rocha, who also ordered him to pay $1,182,500 in restitution. While imposing sentence at today’s hearing, Judge Aenlle-Rocha called Rosenthal an “incorrigible, serial liar.”
Rosenthal pleaded guilty on June 30 to two counts of wire fraud. He has been in federal custody since that day.
From November 2013 to April 2015, Rosenthal falsely claimed to have inside connections at Goldman Sachs that would provide him with special access to purchase shares of Alibaba, a Chinese e-commerce company, at a discount before its initial public offering.
Rosenthal used a middleman to carry out his scheme, lying to the middleman and pressuring him to solicit funds from his relatives and acquaintances for the purportedly lucrative investment opportunity.
To lend legitimacy to his fraudulent scheme, Rosenthal negotiated and drafted loan agreements and promissory notes with the victims that promised the victims significant returns on their loans and investments.
After obtaining their money, Rosenthal lulled his victims by, among other things, falsely stating that the Alibaba shares he supposedly would purchase with their money were locked up and could not be immediately sold.
Instead of using victims’ funds to purchase shares of Alibaba, Rosenthal used the money to support his lavish lifestyle, which included the $16,000 monthly rent of a Malibu home. To avoid detection and forestall threatened legal action by the victims, Rosenthal used some of the funds received from early victims to pay off later ones in a Ponzi-style arrangement.
Rosenthal “carefully crafted a ruse to steal money” using “clever inducements” that made it difficult for victims to discover the fraud and insulated [Rosenthal from] having to regularly deal with his victims by abusing the reputation of good character and business judgment of the victims’ trusted friend and relative” to perpetrate the fraud, prosecutors argued in a sentencing memorandum. “[Rosenthal] enhanced the attractiveness of his scheme by making up friends in high places, complete with fake emails, to create the further appearance of exclusivity and success.”
IRS Criminal Investigation investigated this matter.
Assistant United States Attorneys Steven M. Arkow and Mark Aveis of the Major Frauds Section and Trial Attorney Sara E. Henderson of U.S. Department of Justice’s Tax Division prosecuted this case.
Former High-Ranking DEA Special Agent and Current DEA Agent Convicted for Bribery SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced yesterday that JOHN COSTANZO JR., a Drug Enforcement Administration (“DEA”) Special Agent currently on leave, and MANUEL RECIO, a former DEA Assistant Special Agent in Charge, were convicted of conspiracy to bribe a public official, conspiracy to commit honest services wire fraud, and honest services wire fraud, for a scheme in which RECIO funneled tens of thousands of dollars to COSTANZO in exchange for COSTANZO providing sensitive law enforcement information to assist RECIO in recruiting clients for defense lawyers. In addition, COSTANZO was convicted of accepting bribes from RECIO, and RECIO was convicted of giving bribes to COSTANZO. The verdict followed a 12-day trial before U.S. District Judge J. Paul Oetken.
U.S. Attorney Damian Williams said: “John Costanzo, a DEA Special Agent on leave, and Manuel Recio, a former DEA Assistant Special Agent in Charge, trafficked sensitive, nonpublic, confidential law enforcement information in exchange for cash and other valuable financial benefits. In doing so, they endangered public safety by disclosing the timing of sealed indictments and arrests of DEA targets. Recio and Costanzo were convicted by a unanimous jury for their brazen violation of the public’s trust and for providing information that could have put their former colleagues and others in harm’s way. This case underscores that corruption in the ranks of any law enforcement agency will be met with zero tolerance, and we stand with the overwhelming majority of law enforcement officers who carry out their service with integrity and honor.”
According to the evidence presented in court during the trial:
JOHN COSTANZO JR. is a DEA special agent most recently assigned to DEA Headquarters. He was a Group Supervisor in the DEA’s Miami Field Office until June 2019. MANUEL RECIO is a former DEA special agent who retired as the Assistant Special Agent in Charge for the Miami Field Office in November 2018. Upon his retirement, RECIO began operating his own business, which provided private investigative services to criminal defense attorneys and also helped defense attorneys to recruit clients. From around the time of RECIO’s retirement through around November 2019, RECIO agreed with COSTANZO to provide benefits to COSTANZO in exchange for COSTANZO providing RECIO with nonpublic information about DEA investigations. COSTANZO provided RECIO with information about nonpublic investigations, such as the identities of individuals charged and the anticipated timing of indictments and arrests, and intelligence which COSTANZO obtained from the Narcotics and Dangerous Drugs Information System (“NADDIS”), a DEA database that contains information about individuals who are or have been under investigation by the DEA. RECIO paid COSTANZO for this information, which RECIO used to help recruit new clients for criminal defense attorneys.
Among the benefits paid to COSTANZO were a $2,500 payment made in November 2018, shortly after RECIO’s retirement from the DEA, which was funneled to COSTANZO through a company owned by a close family member of COSTANZO. At the same time that this payment was made, RECIO began asking COSTANZO to run searches in NADDIS to provide RECIO with nonpublic DEA information about DEA targets and investigations. Following that initial payment, RECIO and others continued to provide benefits to COSTANZO, including tens of thousands of dollars that were funneled from RECIO through a company created by a DEA task force officer and $50,000 that was paid to COSTANZO through a close family member for COSTANZO’s purchase of a condominium in January and February 2019.
In return, COSTANZO continued to provide nonpublic DEA information to RECIO, including information about the timing of forthcoming indictments and information about DEA arrest plans of particular targets. COSTANZO also searched NADDIS for names of particular individuals requested by RECIO on dozens of occasions during the scheme and provided RECIO with information and assistance with particular charged defendants represented by attorneys for whom REICO was working. During the scheme, COSTANZO and RECIO took steps to conceal the existence of the scheme, including by structuring the payments from RECIO to COSTANZO through third parties and through COSTANZO’s use of a cellphone provided by RECIO for communications related to the scheme.
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COSTANZO JR., 48, of Arlington, Virginia, and RECIO, 54, of Miami, Florida, were each convicted of one count of conspiracy to commit bribery, which carries a maximum term of five years in prison, and one count of receiving or paying a bribe, respectively, which carries a maximum term of 15 years in prison. COSTANZO and RECIO were also convicted of one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, each of which carries a maximum term of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and is 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 Federal Bureau of Investigation and the Department of Justice Office of the Inspector General and thanked the DEA’s Office of Professional Responsibility for its support in this matter.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Mathew Andrews, Emily Deininger, Sheb Swett, Nathan Rehn, and Sarah Mortazavi are in charge of the prosecution, with the assistance of Paralegal Specialists Dean Iannuzzelli and Nerlande Pierre.
Former Baltimore City State’s Attorney Marilyn Mosby Convicted on Two Counts of PerjuryRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Marilyn J. Mosby, age 42, of Baltimore, Maryland, on federal charges of perjury, relating to the withdrawal of funds from the City of Baltimore’s Deferred Compensation Plan claiming that she suffered adverse financial consequences during the COVID-19 pandemic when she was Baltimore City State’s Attorney.
The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
U.S. Attorney Erek L. Barron said, “We respect the jury’s verdict and remain steadfastly committed to our mission to uphold the rule of law, keep our country safe, protect the civil rights of all Americans, and safeguard public property.”
According to the evidence presented at trial, on May 26, 2020 and December 29, 2020, Mosby submitted “457(b) Coronavirus-Related Distribution Requests” for one-time withdrawals of $40,000 and $50,000, respectively, from City of Baltimore’s Deferred Compensation Plan. Trial evidence proved that Mosby falsely certified that she met at least one of the qualifications for a distribution as defined under the CARES Act, specifically, that she experienced adverse financial consequences from the Coronavirus as a result of being quarantined, furloughed, or laid off; having reduced work hours; being unable to work due to lack of childcare; or the closing or reduction of hours of a business she owned or operated. In signing the forms, Mosby “affirm[ed] under penalties for perjury the statements and acknowledgments made in this request.” As proven at trial, Mosby did not experience any such financial hardships and in fact, Mosby received her full gross salary of $247,955.58 from January 1, 2020 through December 29, 2020, in bi-weekly gross pay direct deposits of $9,183.54.
Mosby faces a maximum sentence of five years in federal prison for each of the two counts of perjury. U.S. District Judge Lydia K. Griggsby has not yet scheduled sentencing.
In a separate pending federal case, Mosby also faces two counts of making false mortgage applications, relating to the purchases of two vacation homes in Florida. Those charges remain pending and a trial date has not been set. If convicted of those counts, the defendant faces a maximum of 30 years in federal prison for each of two remaining counts. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI and IRS-CI for their work in the investigation and thanked the Baltimore City Office of the Inspector General for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Aaron S.J. Zelinsky, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Forfeiture Complaint Seeks to Return to New Haven More Than $1.1 Million Seized from Email ScammersRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that the U.S. Attorney’s Office and the FBI have seized and filed a civil asset forfeiture complaint against $1,187.677.94 that was traceable to a business email compromise attack on the City of New Haven’s Board of Education earlier this year.
As alleged in the complaint, which was filed today in U.S. District Court, criminal actors were able to compromise an email account associated with a member of management team of the City of New Haven’s Board of Education. In June 2023, these actors created a fake email account that mimicked the email of a bus company that held a contract with the Board of Education for bussing. The criminal actors used the compromised email address to send test emails between the compromised email address and the newly created fake bus company email address. Using the fake bus company email address, the criminal actors then were able to change the bus company’s payment information from the real bus company to an account held by the criminal actors. New Haven sent approximately $5.9 million dollars to the account.
The FBI and the U.S. Attorney’s Office were able to trace and seize a portion of the stolen money. With the filing of a civil asset forfeiture complaint, the U.S. is seeking to forfeit and return the money to the City of New Haven. Approximately $3.6 million of the stolen money was previously recovered.
“While we will continue to pursue criminal prosecution of the individuals involved in this scam, recovering the victim’s money is a priority,” said U.S. Attorney Avery. ”Civil asset forfeiture allows the U.S. Attorney’s Office to recover money for victims of fraud, such as business email compromises, romances scams, confidence scams, and other crimes. As these fraud schemes often involve conversion of U.S. currency to digital assets, this process typically involves significant law enforcement resources and specialized training. In recent years, through the civil asset forfeiture process, the U.S. Attorney’s Office for the District of Connecticut has recovered millions of dollars for Connecticut victims, most of whom do not have the means nor the expertise to trace the money.”
“Despite the advanced level of these particular cyber schemes, our highly trained law enforcement officers and agents haven been able to effectively uncover and stop the ongoing financial losses, and recover funds for the City of New Haven,” said FBI Special Agent in Charge Fuller. “Our ongoing focus will continue to be protecting those that remain vulnerable to cyber intrusion and fraud.”
To avoid becoming the victim of a BEC scheme, verify email addresses are accurate when checking mail on a cellphone or other mobile device before you open any attachments or follow any instructions and never make any payment changes without verifying with the intended recipient by phone or in person. If you think you have been a victim of a BEC scheme, immediately contact your bank to request a recall or reversal as well as a Hold Harmless Letter or Letter of Indemnity, and file a detailed complaint with the Internet Crime Complaint Center at www.ic3.gov. The Internet Crime Complaint Center, is run by the FBI and serves as the country’s hub for reporting cybercrime. Visit www.ic3.gov for updated information regarding BEC trends as well as other cyber fraud schemes.
This matter is being investigated by Federal Bureau of Investigation and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney David C. Nelson.
Foreign National Charged with International Drug TraffickingRead the Press Release
An indictment was unsealed in the District of Columbia today charging a foreign national with international fentanyl, heroin, methamphetamine, cocaine, and marijuana trafficking.
According to court documents, between January 2017 and April 2021, Juan Carlos Morgan Huerta, aka Cacayo, conspired to import large quantities of fentanyl, heroin, methamphetamine, cocaine, and marijuana from Mexico into the United States.
Morgan Huerta is charged with conspiracy to manufacture and distribute 400 grams or more of fentanyl, one kilogram or more of heroin, 500 grams or more of methamphetamine, five kilograms or more of cocaine, and over 1,000 kilograms of marijuana for importation into the United States. If convicted, Morgan Huerta faces a mandatory minimum of 10 years in prison and a statutory maximum penalty of life in prison.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Drug Enforcement Administration (DEA) Administrator Anne Milgram, and Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI) made the announcement.
The Organized Crime Drug Enforcement Task Forces (OCDETF) supported the case.
The FBI Tucson Field Office, OCDETF Strike Force, DEA Nogales Field Division, and HSI Tucson Field Office are investigating this case.
Trial Attorneys Kirk Handrich and Lernik Begian of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Justice Department’s Office of International Affairs and Criminal Division’s Office of Enforcement Operations provided significant assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Halfway House and Former President Plead Guilty to Wire Fraud and Making False StatementsRead the Press Release
ABINGDON, Va. – The former president and director of Secor, Inc., a federal halfway house that contracted with the Federal Bureau of Prisons (BOP) to house inmates, pled guilty today to making false statements and committing wire fraud. The corporation, through its attorney, also pled guilty to those charges. The former president and director will serve at least one year in federal prison under the plea agreement.
Matthew Castle, 35, of Lebanon, Virginia, and Secor, Inc., each pled guilty today in federal court to one count of making materially false statements in a matter within the jurisdiction of the executive, legislative, or judicial branch of the United States and one count of wire fraud.
Under the plea agreements, Castle will serve between 12 and 21 months in prison, and Secor will serve a term of probation of one to five years. Additionally, Castle and Secor will pay $208,105 in restitution, forfeit $40,000, and pay an additional $30,000 in fines.
“This company and its former president and director were paid to house offenders for the Bureau of Prisons and instead of taking on that responsibility, they chose to defraud the American taxpayers and the Bureau of Prisons,” United States Attorney Christopher R. Kavanaugh said today. “This case was investigated internally using a U.S. Attorney’s Office financial fraud investigator and it represents a new beginning for the Western District of Virginia, one where financial crimes are investigated and prosecuted entirely within our Office.”
According to court documents, Secor was a residential reentry center, commonly referred to as a halfway house, for inmates from the BOP who were nearing the end of their federal prison sentences.
In 2018, Secor entered into a contract with the BOP that allowed some of the offenders under the care of Secor to be assigned to “home confinement,” meaning those offenders resided at an approved residence not owned by Secor. BOP paid Secor a per diem rate for offenders who resided at Secor’s facilities and a different per diem rate for those on home-confinement.
Under the terms of the contract, Secor was required to outfit home-confinement offenders with GPS monitoring equipment so the offenders’ whereabouts could be determined at all times. In addition, Secor personnel were required to personally visit each offender’s residence on at least a monthly basis to ensure the offender was living at the offender’s assigned residence, in a safe environment, and in accordance with applicable rules.
In fact, Castle and Secor failed to meet these requirements. For example, Secor did not outfit many of the home-confinement offenders with GPS monitoring and failed to conduct home visits as required. Nonetheless, Castle routinely completed documentation certifying that he had conducted such visits and noted no issues. In addition to signing these phony documents himself, Castle often wrote false observations like “things were going well,” and the offender “had no questions or concerns to address at the time.”
Each month, Castle submitted invoices to BOP for payments pursuant to the contract between Secor and the BOP. BOP then issued payments to Secor based on Castle and Secor’s representations that Castle and Secor were providing home-confinement services in accordance with the contract.
The case was investigated by the U.S. Attorney’s Office with the assistance of the Russell County Sheriff’s Office and the Bureau of Prisons.
Assistant U.S. Attorneys Whit Pierce and Randy Ramseyer are prosecuting the case.
Federal Grand Jury Charges Former Army Private with Four Additional Felony Child Exploitation ChargesRead the Press Release
LOS ANGELES – A former Army private based at Fort Irwin in San Bernardino County is scheduled to be arraigned today on federal charges alleging, in part, that he knowingly produced child sexual abuse material (CSAM) featuring a 14-year-old girl.
Parker William White, 23, of Johnsonville, New York, who first was indicted on March 10 with one count of possession of child pornography, was charged in a superseding indictment with four additional felony child exploitation charges.
White is now charged with five felonies: one count of production of child pornography, three counts of receipt of child pornography, and one count of possession of child pornography.
White was arrested on February 24 pursuant to a criminal complaint that alleges White used Instagram and other social media platforms to find minor “girlfriends” as young as 13. White would groom these minor girls by telling them that he would treat them like “queens,” according to the complaint’s affidavit.
A March 14, 2024 trial date previously has been scheduled in this matter. White is currently in federal custody and has been ordered jailed without bond.
The superseding indictment returned on Tuesday alleges that in November 2021, White knowingly induced a 14-year-old girl to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The visual depiction was produced using materials that had been mailed, shipped, and transported in and affecting interstate commerce.
The indictment further alleges that on three occasions in November 2021 and January 2022, White knowingly received child sexual abuse material that had been transported through interstate commerce, including by computer.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, White would face a mandatory minimum of 15 years in federal prison and a statutory maximum sentence of 30 years in federal prison for the production of child pornography count, a mandatory minimum of five years in federal prison and up to 20 years’ imprisonment for each receipt of child pornography count, and a statutory maximum sentence of 10 years in federal prison for the child pornography possession count.
Homeland Security Investigations and the United States Army Criminal Investigation Division investigated this case.
Assistant United States Attorney Lyndsi Allsop of the Violent and Organized Crime Section is prosecuting this case.
Federal Grand Jury A Indictments Announced - November 2023Read the Press Release
United States Attorney Clint Johnson today announced the results of the November 2023 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Pablo Escobar-us. Unlawful Reentry of a Removed Alien. Pablo Escobar-us, 30, a Mexican national, is charged with unlawfully reentering the United States after having been removed on Feb. 18, 2014, at or near Brownsville, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 23-CR-363
Edgar Garcia-Rodriguez. Unlawful Reentry of a Removed Alien. Edgar Garcia-Rodriguez, 22, a Mexican national, is charged with unlawfully reentering the United States after having been removed on Jan. 23, 2022, at or near Brownsville, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 23-CR-362
Lerontez Sherod Hill; Bobbe Gene Taylor; Tashonna Leigh Anderson; Walter Jay Johnson; Kemareay Keishion Green; Jeremiah Hamlin. Kidnapping; Obstructing, Delaying, and Affecting Commerce by Robbery; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence; (superseding). Hill, 38, of Tulsa; Taylor, 25, of Tulsa; Anderson, 36, of Bixby; Johnson, 25, of Tulsa; Green, 25, of Atoka; and Hamlin, 39 of Tulsa are with is charged with kidnapping and robbery on August 17, 2021. The FBI is the investigative agency. Assistant U.S. Attorney Kenneth Elmore is prosecuting the case. 23-CR-318
Jonathan Eliezer Miranda Juarez. Transportation of a Minor with Intent to Engage in Criminal Sexual Activity; Coercion and Enticement of a Minor. Jonathan Eliezer Miranda Juarez, 29, of Commerce, is charged with knowingly transported a minor with intent to engage in sexual activity on Aug. 18, 2023. He also charge with coercion and enticement of a minor from Aug. of 2020 through Aug. 18, 2023. The Indiana Delphi Police Department, the Commerce Police Department, Oklahoma State Highway Patrol, Oklahoma State Bureau of Investigation, Federal Bureau of Investigation, and Homeland Security Investigations are the investigative agencies. Assistant U.S. Attorneys Ashley Robert and Stephanie Ihler are prosecuting the case. 23-CR-347
Efrain Lira-Anaya. Alien Unlawfully in the United States in Possession of a Firearm and Ammunition. Efrain Lira-Anaya, 47, a Mexican national, is charged with unlawfully possessing a firearm and ammunition on July 27, 2023. Homeland Security Investigations is the investigative agency. Assistant U.S. Attorney Mandy M. Mackenzie is prosecuting the case. 23-CR-361
Dakota Shane May. Second Degree Burglary in Indian Country. Dakota Shane May, 28, of Tulsa, a Muscogee Creek Nation member, broke into a residence with intent to steal on Aug. 9, 2023. The FBI is the investigative agency. Assistant U.S. Attorney Stephanie N. Ihler is prosecuting the case. 23-CR-360
Shelly Annette McElroy; Gary Don McElroy. Drug Conspiracy; Possession of Methamphetamine with Intent to Distribute; Possession of Fentanyl with Intent to Distribute; Tampering with a Record, Document, and Other Object. Shelly Annette McElroy, 51, and Gary Don McElroy, 54, of Tulsa, conspired and possessed methamphetamine and fentanyl with intent to distribute on Oct. 8, 2023. Shelley McElroy was also charged with attempting on Oct. 9 and Oct. 12, 2023, to tamper with and erase the contents of a cellular phone seized as evidence on Oct. 8, 2023. The Drug Enforcement Administration and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorneys Adam D. McConney and Niko Boulieris are prosecuting the case. 23-CR-348
Jason Ryan Mitchell. Felon in Possession of a Firearm and Ammunition; Possession of an Unregistered Weapon Made from a Shotgun. Jason Ryan Mitchell, 41, of Owasso, knowingly he had previously been convicted of felonies, possessed a short-barreled shotgun not registered to him on Sep. 5, 2023. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agency. Assistant U.S. Attorney John W. Dowdell is prosecuting the case. 23-CR-349
Charles William Pebeahsy, III. Assault with Intent to Commit Murder in Indian Country; Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. Charles William Pebeahsy, 51, of Quapaw, assaulted his victims with intent to commit murder on May 31, 2023. Pebeahasy is a tribal member of the Quapaw Nation. the Quapaw Nation Marshal Service is the investigative agency. Assistant U.S. Attorney Christian Harris is prosecuting the case. 23-CR-357
Luis Angel Perez-Serrano. Unlawful Reentry of a Removed Alien. Luis Angel Perez-Serrano, 25, a Mexican national, is charged with unlawfully reentering the United States after having been removed on Dec. 19, 2019, at or near San Ysidro, California. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Cheryl L. Baber is prosecuting the case. 23-CR-355
Luis Miguel Rodriguez Perez. Possession of Cocaine with Intent to Distribute. Luis Miguel Rodriguez Perez, 30, a Mexican national and United States lawful permanent resident, is charged with knowingly possessing cocaine with intent to distribute on Oct. 18, 2023. The Drug Enforcement Administration is the investigative agency. Assistant U.S. Attorneys Adam D. McConney and Niko Boulieris are prosecuting the case. 23-CR-358
Ronald Dale Sanders. Travel with Intent to Engage in Illicit Sexual Conduct; Sexual Abuse of a Minor in Indian Country; Abusive Sexual Contact with a Minor in Indian Country; Tampering with Evidence by Corrupt Persuasion. Ronald Dale Sanders, 55, of Belton, Missouri, from Aug. 2023 to Oct. 15, 2023, traveled to engage in a sexual act with an Indian child under the age of 16. Sanders is additionally charged for attempting to destroy or conceal evidence from Oct. 15, 2023, to Oct. 18, 2023. The FBI is the investigative agency. Assistant U.S. Attorney Alicia Hockenbury is prosecuting the case. 23-CR-354
Juan Villalobos-Jimenez. Unlawful Reentry of a Removed Alien. Juan Villalobos-Jimenez, 29, a Mexican national, is charged with unlawfully reentering the United States after having been removed on Jul. 10, 2015, at or near Del Rio, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney David D. Whipple is prosecuting the case. 23-CR-353
Brandon David McCarthy; Rachel Christine McCarthy. 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. Brandon David McCarthy, 37 and Rachel Christine McCarthy, 34, of Tulsa are charged with several counts related to a drug conspiracy involving poppy seeds coated in opium latex and resulted in the death of a Utah woman. The Drug Enforcement Administration is the investigative agency. Assistant U.S. Attorney Reagan V. Reininger is prosecuting the case. 23-CR-359
Erie, PA man going to prison for eight years after having sex with 15 y/oRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Tristan Pearson, 26, of Erie, PA, who was convicted of possession of child pornography, was sentenced to serve 96 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that between January and May 2018, Pearson knowingly engaged in a sexual relationship with a 15-year-old female (Victim) in the Western District of New York. On two separate occasions, Pearson filmed himself having sexual relations with the Victim using his cellular telephone. Pearson then distributed those videos to others via text message.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.
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Engineer Indicted for Bombing Energy Facilities in CaliforniaRead the Press Release
SAN JOSE – Peter Karasev, 36, a U.S. citizen residing in San Jose, was arraigned in the Northern District of California today on an indictment charging him with destroying energy facilities and using fire or explosives to commit a federal crime. Karasev made his appearance today before United States Magistrate Judge Virginia K. DeMarchi.
According to court documents, Karasev was indicted on Oct. 19. As alleged in counts one and two of the indictment, Karasev knowingly and willfully damaged the property of two energy facilities – specifically, two PG&E transformers in San Jose, California on Dec. 8, 2022, and Jan. 5, 2023, respectively – and attempted to cause and caused significant interruption and impairment of those energy facilities. The indictment also alleges, in count three, that the defendant used fire and an explosive to commit a felony, specifically, the destruction of an energy facility on Jan. 5, 2023.
“These charges make clear that those who attack our country’s critical infrastructure will be met with the full force of the Justice Department,” said Attorney General Merrick B. Garland. “We have charged Peter Karasev with bombing two energy transformers in Northern California, leaving more than 1,500 households and businesses in the San Jose community without power. I want to thank the U.S. Attorney’s Office for Northern District of California and the FBI for their work to bring the defendant to justice and prevent further harm to the San Jose community.”
“The defendant in this case allegedly used explosives to try to cut off electricity to more than 1,500 San Jose businesses and residences,” said U.S. Attorney Ismail J. Ramsey. “Damaging our region’s critical infrastructure endangers innocent victims—including our most vulnerable citizens such as the elderly and the sick—and we will not tolerate it. We will vigorously prosecute any malicious attempts to disrupt the power grid.”
“Attacks and threats against neighborhood energy facilities with explosives are more than alarming. The FBI and our partners will not tolerate criminal activity that puts the safety of our citizens at risk,” said FBI Special Agent in Charge Robert K. Tripp. “I commend the San Jose Police Department for their swift action in identifying and apprehending Karasev. Their excellent detective work prevented further harm to our community.”
As described in a government memorandum seeking Karasev’s pretrial detention, Karasev constructed, planted and ignited the explosive devices that caused each of the transformer explosions. Both attacks occurred during the early morning hours in commercial areas occupied by stores and businesses, and collectively terminated power to over 1,500 households and businesses in the San Jose community.
The government’s memorandum also detailed that in the months leading up to the attacks, Karasev was building and experimenting with homemade explosives, as well as manufacturing methamphetamine, in his own home. At the time of his arrest, Karasev was allegedly in possession of a range of improvised explosive devices in varying stages of completion, as well as multiple firearms, additional weapons, over 300 pounds of explosive precursor materials, and other hazardous substances.
Karasev was arrested in March 2023 by the San Jose Police Departement and remained in custody on related state charges prior to his transfer to federal custody for this case. A federal grand jury charged Karasev with two counts of destruction of an energy facility and one count of use of fire or an explosive to commit a federal felony. If convicted, Karasev faces a mandatory minimum penalty of 10 years in prison on the third count to be served consecutively to any imprisonment imposed for either of the other counts. Karasev faces a maximum penalty of up to 20 years in prison, a $250,000 fine, and three years of supervised release for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Karasev was ordered detained pending his next federal court appearance. His next appearance is scheduled to take place on January 30, 2024, before Hon. Beth Labson Freeman, United States District Judge.
This case is being investigated by the FBI and the San Jose Police Department.
Assistant U.S. Attorney Anne C. Hsieh for the Northern District of California and Trial Attorney Jacob Warren of the National Security Division’s Counterterrorism Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
cr_23-00364-blf-01_indictment.pdfEl Departamento de Justicia obtiene un acuerdo histórico de $25 millones con Apple para resolver acusaciones de discriminación laboral basadas en el estatus de ciudadaníaRead the Press Release
El Departamento de Justicia anunció hoy que ha obtenido un acuerdo histórico con Apple Inc. (Apple) para resolver las acusaciones de que Apple discriminó ilegalmente en su contratación y reclutamiento, a ciudadanos de los EE. UU. y a ciertos no ciudadanos de los EE. UU. cuyo permiso para vivir y trabajar en los Estados Unidos no vence.
En virtud del acuerdo, Apple está obligada a pagar hasta $25 millones en pago retroactivo y sanciones civiles, la mayor concesión que el Departamento ha recuperado en virtud de la disposición antidiscriminación de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
«La creación de barreras ilícitas que le dificultan a alguien buscar un trabajo debido a su estatus de ciudadanía no se tolerará», dijo Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Esta resolución refleja el compromiso de la División de Derechos Civiles de acabar con las prácticas de empleo discriminatorias ilegales».
El acuerdo resuelve la determinación del Departamento de que Apple infringió los requisitos antidiscriminatorios de la INA durante el reclutamiento de Apple para puestos que forman parte del programa de certificación laboral permanente (PERM, por sus siglas en inglés). El programa PERM es administrado por el Departamento de Trabajo de los EE. UU. y el Departamento de Seguridad Nacional de los EE. UU. Permite a los empleadores patrocinar a los trabajadores para obtener el estatus de residente permanente legal en los Estados Unidos después de completar los pasos de reclutamiento requeridos y cumplir con otros requisitos del programa. Cualquier empleador en los Estados Unidos que utiliza el proceso PERM no puede discriminar ilegalmente en la contratación o el reclutamiento en función de la ciudadanía o el estatus migratorio.
La investigación del Departamento, que empezó en febrero del 2019, encontró que Apple incurrió en un patrón o una práctica de discriminación por motivos de estatus de ciudadanía en su reclutamiento para puestos que contrató a través del programa PERM, y que la discriminación ilícita de la compañía perjudicó a ciudadanos de los EE: UU., nacionales de los EE. UU., residentes permanentes legales y aquellos a los que se les ha concedido el asilo o el estatus de refugiado. Estas prácticas de contratación menos eficaces disuadieron a los trabajadores protegidos de solicitar vacantes que Apple prefirió llenar, en su lugar, con beneficiarios de PERM.
En concreto, la investigación del Departamento determinó que Apple no publicaba puestos que Apple pretendía cubrir mediante el programa PERM en su sitio web de trabajo externo, aunque su práctica estándar era publicar otros puestos de trabajo en este sitio web. También exigía que todos los solicitantes de puestos PERM enviaran solicitudes en papel, aunque la empresa permitía solicitudes electrónicas para otros puestos. En algunos casos, Apple no consideró ciertas solicitudes para puestos PERM de los empleados de Apple si esas solicitudes se enviaron electrónicamente, en lugar de las solicitudes en papel enviadas por correo. El resultado de estos procedimientos de reclutamiento menos eficaces casi siempre era la escasa presentación de solicitudes, si es que alguna, para puestos PERM de solicitantes cuyo permiso para trabajar no vence.
De conformidad con el acuerdo de $25 millones, a Apple se le requiere pagar $6,75 millones en sanciones civiles y establecer un fondo de pagos retroactivos de $18,25 millones para las víctimas de discriminación elegibles. Por otra parte, el acuerdo requiere que Apple se asegure de que su contratación para puestos PERM se ajuste más a sus prácticas habituales de contratación.
En concreto, Apple deberá realizar un reclutamiento más amplio para todos los puestos PERM, incluida la publicación de puestos PERM en su sitio web de empleo externo, la aceptación de solicitudes electrónicas y la posibilidad de buscar a candidatos para puestos PERM en su sistema de seguimiento de candidatos. Apple ha implementado algunas de estas medidas después de que el Departamento abriera su investigación. Además, Apple capacitará a sus empleados sobre los requisitos antidiscriminatorios de la INA y se someterá a la supervisión por parte del Departamento durante el período de tres años del acuerdo.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Esta ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación. Puede aprender más sobre el trabajo de la IER y cómo obtener asistencia a través de este vídeo corto o visualice una presentación a la carta. Hay más información disponible en el sitio web de la IER sobre cómo los empleadores pueden evitar la discriminación en los procesos de contratación y reclutamiento.
Los trabajadores que tengan preguntas sobre este acuerdo pueden comunicarse con la IER al 1-888-473-3897 o [email protected]. El público puede obtener más información sobre cómo conseguir ayuda de IER en los sitios web de la IER inglés y español. Inscríbase para recibir actualizaciones por correo electrónico de la IER.
View the settlement agreement here.
View Attachment A here.
El Departamento de Justicia logra un acuerdo con Cox Communications para resolver acusaciones de que la empresa utilizó una plataforma de reclutamiento de Georgia Tech para discriminarRead the Press Release
En el 37º aniversario de la aprobación por parte del Congreso de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés), el Departamento de Justicia anunció hoy que ha logrado un acuerdo con Cox Communications Inc., un proveedor de servicios de telecomunicaciones residenciales y empresariales con sede en Georgia para resolver acusaciones de discriminación.
En concreto, este acuerdo resuelve la determinación del Departamento que Cox Communications vulneró la INA mediante el uso de una plataforma de reclutamiento en el recinto universitario del Instituto de Tecnología de Georgia («Georgia Tech») para publicar decenas de anuncios de empleo discriminatorios que excluyeron, de manera ilícita, a estudiantes y antiguos alumnos en función de su estatus de ciudadanía. Previamente, el Departamento llegó a un acuerdo con otros 30 empleadores para resolver acusaciones similares:16 en junio del 2022, cuatro en septiembre del 2022 y otros 10 en mayo del 2023—y con Georgia Tech en agosto del 2023.
«Con este último acuerdo, el Departamento de Justicia ha hecho a Georgia Tech y a 31 empleadores responsables del papel que han desempeñado en la discriminación ilícita en la contratación basada en el estatus de ciudadanía de los estudiantes», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Estos acuerdos han obtenido más de $2.5 millones en sanciones civiles y demuestran el compromiso del Departamento de garantizar que los estudiantes universitarios y sus exalumnos que están comenzando sus carreras laborales tengan una oportunidad equitativa de competir por trabajos».
El Departamento inició sus investigaciones después de que un estudiante de Georgia Tech, que para aquel entonces era residente permanente legal, se quejó de un anuncio de prácticas restringido a ciudadanos de los EE. UU. en la plataforma de reclutamiento laboral en el recinto universitario de Georgia Tech. La investigación del Departamento de la denuncia del estudiante reveló decenas de otros anuncios discriminatorios en la plataforma, incluidos varios publicados por Cox Communications. El Departamento descubrió que Cox Communications publicó numerosos anuncios de trabajo que excluían, de manera ilegal, a los trabajadores a los que se les ha concedido el asilo o el estatus de refugiado, residentes permanentes legales y, en un caso, ciudadanos estadounidenses. Por otra parte, el Departamento también determinó que Cox Communications utilizó características de la plataforma en línea de Georgia Tech para disuadir y excluir automáticamente a los estudiantes calificados de solicitar puestos de trabajo, debido a su estatus de ciudadanía.
Este acuerdo requiere que Cox Communications pague una sanción civil de $459,895 y que capacite a su personal de reclutamiento en cuanto a la disposición antidiscriminación de la INA. El acuerdo también prohíbe a Cox Communications incluir designaciones específicas de ciudadanía o estatus migratorio en sus anuncios de trabajo en el recinto universitario, a menos que las restricciones sean legalmente obligatorias.
Este acuerdo forma parte de los esfuerzos del Departamento por combatir la discriminación relacionada con la inteligencia artificial y los sistemas automatizados, como se describe en la Orden ejecutiva sobre el desarrollo y uso seguro y fiable de la inteligencia artificial.
La disposición antidiscriminatoria de la INA se aprobó como parte de la ley de Reforma y Control de la Inmigración en noviembre de 1986. Esta ley prohíbe que los empleadores y reclutadores restrinjan los trabajos en función de la ciudadanía o el estatus migratorio, a menos que lo exija una ley, una regulación, una orden ejecutiva o un contrato gubernamental. La INA protege a aquellos a los que se les ha concedido el asilo o el estatus de refugiado, residentes permanentes legales recientes, ciudadanos de los EE. UU. y nacionales de los EE. UU. de la discriminación por motivos de estatus de ciudadanía en los procesos de contratación, despido y reclutamiento o recomendación por comisión.
Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. El sitio web de la IER tiene más información sobre cómo los empleadores pueden evitar la discriminación a base del estatus de ciudadanía al contratar y reclutar. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico de la IER.
View the settlement agreement here.
Dominican National Charged with Illegally Reentering U.S.Read the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOSE OZUNA CRUZ, also known as Jose Cruz-Cruz, Jose Chapulin, Jose Ozuna-Montero, and Jose Ozun-Cruz, 48, a citizen of the Dominican Republic, was arrested today on a federal criminal complaint charging him with illegally reentering the United States after being deported.
As alleged in the criminal complaint, Ozuna was deported from the U.S. to the Dominican Republic in February 2010, following a felony conviction in the U.S. District Court for the Southern District of California and 37-month prison sentence for conspiracy to distribute cocaine. Ozuna subsequently illegally reentered the U.S. On November 21, 2022, Ozuna was arrested by Waterbury Police in Waterbury and charged with various state drug distribution and firearm possession offenses.
Ozuna, who had been released on bond in his state case, appeared this afternoon before U.S. Magistrate Judge Robert M. Spector in New Haven and was ordered detained.
If convicted of the charge of illegal reentry, Ozuna faces a maximum term of imprisonment of 20 years. The state charges against him are pending.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by U.S. Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Jessica Casey.
Dominican Man Indicted for Illegal Reentry and Fentanyl DistributionRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Ricardo Pena, age 58, of the Dominican Republic, was indicted yesterday by a federal grand jury with illegal reentry and four counts of distributing fentanyl.
According to United States Attorney Gerard M. Karam, the indictment alleges that on or about March 7, 2017, Pena was previously removed from the United States through Alexandria, Louisiana, and it is alleged that he reentered the United States without first obtaining legal permission to do so. The indictment also alleges that on or about October 25, 2023, Pena was encountered in Dauphin County. In addition, the indictment alleges that on four occasions, Pena distributed fentanyl between August 23, 2023, and October 10, 2023.
The matter was investigated by Homeland Security Investigations. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
This case is also 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 maximum penalty for this offense is up to 100 years in prison, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Drug Trafficker Sentenced to 46 Months IncarcerationRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced that Keyran Coto Lopez, 28, of Costa Rica, was sentenced by District Judge Wilma Lewis to 46 months of incarceration following his guilty plea to possession with intent to distribute marijuana onboard a vessel subject to the jurisdiction of the United States.
According to court documents, on November 7, 2022, while on patrol in international waters in the Eastern Pacific, the United States Coast Guard Cutter Campbell intercepted a go-fast vessel operating approximately 65 nautical miles South of Boca Chica, Panama, with no physical flag flown and no registration documents. Coast Guard officials also observed contraband on the deck of the go-fast vessel and three individuals later identified as Lopez, Alonso Hernandez-Hernandez and Luis Orellana-Orellana onboard. All three occupants claimed to be nationals of Costa Rica and claimed Colombian nationality for the go-fast vessel. The Colombian government neither confirmed nor denied nationality of the vessel thereby subjecting it to the jurisdiction of the United States. A search of the go-fast vessel resulted in the recovery of 4,104 pounds of marijuana. Hernandez-Hernandez and Orellana-Orellana also pleaded guilty and are awaiting sentencing.
This case was investigated by the United States Coast Guard and the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Melissa P. Ortiz. This effort 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.
Couple Charged for Operating Multimillion-Dollar Pyramid SchemeRead the Press Release
A federal grand jury in the Eastern District of Texas returned an indictment yesterday charging a Texas couple for operating an illegal pyramid scheme that defrauded thousands of participants of more than $10 million.
According to court documents, LaShonda Moore, 35, and Marlon Moore, 37, co-founded and ran an illegal pyramid scheme called Blessings in No Time (BINT). BINT was allegedly a chain-referral pyramid scheme that targeted the African American community during the COVID-19 pandemic with false and misleading promises that participants could expect 800% guaranteed returns and guaranteed refunds if participants were unsatisfied with the program.
The Moores allegedly organized BINT’s payment scheme with “playing boards” that had eight Fire positions, four Wind positions, two Earth positions, and one Water position. As alleged, players in the Fire position advanced on the board by paying at least $1400 to the person in the Water position and recruiting two new Fire-level participants, at which point the cycle would repeat. In other words, eight new participants had to be recruited into the scheme for a single earlier participant to receive a return on their initial investment. The Moores allegedly placed themselves and their family members in the Water position on multiple playing boards to receive the payments from participants in the Fire position and collected a substantial sum from participants’ monthly user fees, which were required for participation in BINT.
The Moores are charged with conspiracy to commit wire fraud, wire fraud, and money laundering. If convicted, they each face a maximum penalty of 20 years in prison for each wire fraud count and 10 years in prison for each money laundering count.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Damien M. Diggs for the Eastern District of Texas, Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group, Acting Special Agent in Charge Christina Foley of the U.S. Secret Service Dallas Field Office, and Special Agent in Charge Christopher J. Altemus Jr. of the IRS Criminal Investigation (IRS-CI) Dallas Field Office made the announcement.
USPIS, U.S. Secret Service, and IRS-CI are investigating the case.
Trial Attorney Theodore M. Kneller and Assistant Chief William Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Nathaniel Kummerfeld for the Eastern District of Texas are prosecuting the case. The department received assistance from the Federal Trade Commission and the Texas Attorney General’s Office.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Correctional Center Lieutenant Admits to Federal Charge for Depriving Inmate of Civil RightsRead the Press Release
EAST ST. LOUIS, Ill. – A Pinckneyville Correctional Center acting lieutenant appeared in federal court Wednesday to admit he failed to intervene while his subordinates beat a restrained inmate.
Mark C. Maxwell, 52, of Pinckneyville, Illinois, faces up to 10 years in federal prison after pleading guilty to one count of deprivation of civil rights under color of law. He was charged for standing by while two other correctional officers punched and kicked an inmate who was handcuffed and shackled in leg irons. The victim suffered a fractured orbital socket, a partially collapsed lung, and needed 25 stitches to close lacerations to his face.
Under federal law, officers have a duty to intervene if a fellow officer uses excessive force.
Cord A. Williams, 35, of Vergennes, Illinois, and Christian L. Pyles, 25, of Christopher, Illinois, were also charged in the same indictment as Maxwell and have each pleaded guilty to violation of civil rights under color of law, conspiracy to obstruct justice, and obstruction of justice.
The charges arose from an incident in which an inmate was beaten while fully restrained in handcuffs and leg irons on April 24, 2022. According to court documents, the beating occurred to punish the inmate, because the inmate had previously punched a different correctional officer.
Maxwell’s sentencing is scheduled for Feb. 21, 2023.
The Illinois State Police is leading the investigation, and Assistant U.S. Attorney Steven D. Weinhoeft is prosecuting the case.
Convicted Felon Sentenced for Trafficking over 6 Kilograms of CocaineRead the Press Release
RICHMOND, Va. – A Mexican citizen was sentenced today to 13 years in prison for possessing with the intent to distribute over six kilograms of cocaine in Chesterfield County.
According to court documents, on April 17, 2023, Francisco Celedon, 47, met with a law enforcement confidential informant to deliver 6.053 kilograms of cocaine. Celedon was a drug courier for a Mexican drug trafficking organization. At the time of the offense, Celedon was on federal supervised release for a prior federal drug trafficking crime in the Middle District of Alabama.
Celedon was sentenced to 10 years in prison for the possession with the intent to distribute charge and 3 years in prison for violations of his federal supervised release stemming from his prior conviction.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Colonel Jeffrey S. Katz, Chesterfield County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorneys Erik S. Siebert and Shea Gibbons and Special Assistant U.S. Attorney Ellen Hubbard prosecuted the case.
This effort 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-69.
Chicago Man Convicted of Threatening Violence at Women’s Reproductive ClinicRead the Press Release
CHICAGO — A Chicago man has been convicted in federal court of threatening to commit violence at a women’s reproductive health clinic.
A jury in U.S. District in Chicago on Wednesday convicted FARHAN SHEIKH, 23, of transmitting a threat in interstate commerce. The conviction is punishable by a maximum sentence of five years in federal prison. U.S. District Judge Mary M. Rowland did not immediately set a sentencing date.
The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Marshals Service and the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Aaron R. Bond and Melody Wells.
Evidence at trial revealed that Sheikh posted the threatening communications on Aug. 13, 2019, on the social media platform iFunny. In one of his posts, Sheikh stated, “I am done with my state and thier (sic) [expletive] abortion laws and allowing innocrnt (sic) kids to be slaughtered for the so called ‘womans right’ [expletive].” Sheikh later wrote that he would visit a clinic in Chicago and “proceed to slaughter and murder any doctor, patient, or visitor I see in the area and I will not back down.”
In posts that immediately followed the threats, Sheikh described his anger at law enforcement and his frustration over the arrest of another individual for making threats online. Sheikh referred to the other arrest as “surpressing [sic] our freedoms,” and he vowed to “do the same” to “whores.”
Chattanooga Man Sentenced to 60 Months for Unlawful Possession of A Firearm in Connection with June 5, 2022, McCallie Avenue ShootingsRead the Press Release
CHATTANOOGA, Tenn. On November 9, 2023, Rodney Harris, 32 of Chattanooga, TN, was sentenced to 60 months in prison by the Honorable Travis R. McDonough, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
As part of the plea agreement filed with the court, Harris pled guilty on June 7, 2023, to unlawful possession of a firearm by a convicted felon, in violation of 18 U.S.C. §922(g)(1). Following his imprisonment, Harris will be on supervised release for three years.
According to court records, Harris, who had previously been convicted in federal court of a drug conspiracy felony, was caught on camera wearing a mask and brandishing an Anderson Manufacturing AM-15 AR-pistol with an arm brace in front of Mary’s Bar and Grill on McCallie Avenue just prior to the shooting commencing. Harris himself was shot 17 times and run over by a vehicle during the incident.
United States Attorney Francis M. Hamilton III of the Eastern District of Tennessee; Special Agent in Charge Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Special Agent in Charge Joseph E. Carrico, of the Federal Bureau of Investigations (FBI), made the announcement.
The indictment is the result of an investigation by the Chattanooga Police Department, ATF, and FBI. Several other federal, state, and local law enforcement agencies assisted in the investigation, including the United States Marshals Service, United States Secret Service, and the Tennessee Bureau of Investigation.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face.
Assistant United States Attorney Christopher D. Poole represented the United States.
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Charleston Man Sentenced to Prison for Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – Jonathan Levi Rider, 19, of Charleston, was sentenced today to four years in prison, to be followed by 10 years of supervised release, for possession of prepubescent child pornography.
According to court documents and statements made in court, on August 26, 2021, law enforcement officers executed a search warrant at Rider’s residence and seized Rider’s cell phone. Rider admitted to officers that he clicked on internet links that contained child pornography. Officers found more than a dozen images and videos depicting child pornography on his seized cell phone, and more than 100 videos and images depicting child pornography on his Kik Messenger mobile app account.
On November 17, 2022, law enforcement officers executed another search warrant at Rider’s residence. Officers seized Rider’s new cell phone, and on it they found several videos depicting child pornography. One of the videos depicted an adult male anally sexually assaulting a prepubescent child.
Officers found a total of 92 videos and 44 images depicting prepubescent child pornography on Rider’s cell phones and Kik account.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI) and the West Virginia State Police.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorneys Julie M. White and Francesca C. Rollo 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. 2:23-cr-24.
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Central Georgian Sentenced to 20 Years in Prison for Possessing Child Sexual Abuse MaterialRead the Press Release
MACON, Ga. – A Central Georgia resident was sentenced to serve 20 years in prison after he admitted to possessing hundreds of images of child sexual abuse material (CSAM), also known as child pornography, including those involving the graphic abuse of very young children.
David Health, 38, of Macon and Gray, Georgia, was sentenced to serve 240 months in prison to be followed by 20 years of supervised release by Chief U.S. District Judge Marc Treadwell on Nov. 8, after he pleaded guilty to one count of possession of child pornography on Feb. 1. Heath will have to register as a sex offender for life upon release from prison. Heath is not eligible for parole.
“David Heath and other predators who actively seek out gratification from the horrifying sexual abuse of children are a danger to kids,” said U.S. Attorney Peter D. Leary. “The Middle District of Georgia is blessed with law enforcement relentlessly dedicated to protecting the innocent and bringing child predators to justice.”
“The GBI’s Child Exploitation and Computer Crimes Unit will continue to work tirelessly to protect innocent victims of online exploitation. We are grateful for the partnerships we maintain with our local and federal agencies to bring these predators to justice,” said GBI Director Chris Hosey.
According to court documents, GBI received a Cybertip from the National Center for Missing and Exploited Children (NCMEC) on Jan. 17, 2020, that contained approximately 300 images of CSAM. The images, including some depicting the sexual abuse of pre-pubescent minor children, was uploaded to a Google account used by Heath. Another Cybertip containing 75 CSAM files depicting minor prepubescent children engaged in sexual acts was submitted on Feb. 13, 2020, from the same account. In addition, 43 more Cybertips like the aforementioned instances were discovered to have come from the same user.
GBI executed a search warrant at Heath’s Macon residence on March 27, 2020, and several electronic devices were seized, including laptops, cell phones, HD cards, USB sticks and external hard drives. In all, Heath possessed 2081 images of children being sexually assaulted and abused, including 116 images depicting an infant or toddler being sexually abused and one image of sado-masochistic conduct involving a child. Heath has a prior state felony conviction for aggravated assault of a peace officer in Bibb County, Georgia, Superior Court; his parole was revoked in 2020 for the offenses of possession of methamphetamine and five counts of violation computer pornography and child exploitation.
The case was investigated by the GBI.
Criminal Chief Leah McEwen prosecuted the case.
Cedar Rapids Man Sentenced to Federal Prison for Selling Fentanyl While on Supervised ReleaseRead the Press Release
A man who was selling fentanyl while he was on federal supervised release was sentenced today to more than three years in federal prison.
Anthony Laveal Allen, age 26, from Cedar Rapids, Iowa, received the prison term after a July 6, 2023 guilty plea to one count of distribution of a controlled substance.
Evidence at the plea and sentencing hearings showed that, on January 12, 2023, law enforcement conducted an undercover operation and purchased pills from Allen that contained fentanyl. Allen has a prior federal conviction for possession of a firearm as a felon from 2017, and he was serving a term of supervised release when he committed the instant offense.
Allen was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Allen was sentenced to a total sentence of 39 months’ imprisonment comprised of 15 months for the new crime and a consecutive sentence of 24 months’ imprisonment for the supervised release violation. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Allen is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Adam J. Vander Stoep and was investigated as part of the Northern Iowa Heroin Initiative and the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Johnson County Drug Task Force and the Cedar Rapids Police Department. The Johnson County Drug Task Force consists of the Johnson County Sheriff’s Office, the Iowa City Police Department, the Coralville Police Department, the North Liberty Police Department, the University of Iowa Police Department, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 23-CR-17 and 17-CR-23.
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Cocaine Trafficker Sentenced to 70 Months IncarcerationRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced that Leandro De Los Santos, 33, of the Dominican Republic, was sentenced by Judge Wilma A. Lewis to 70 months imprisonment after pleading guilty to possession with intent to distribute 630 kilograms of cocaine while on board a vessel subject to the jurisdiction of the United States.
According to court documents, on September 11, 2022, while on routine patrol south of the Dominican Republic, United States Coast Guard Cutter U.S.S. Billings intercepted a go-fast vessel navigating on a northerly course approximately 80 nautical miles south of Bani, Dominican Republic. The vessel had no flag flown, no registration numbers and no name painted on its hull. The Dominican Republic Navy later confirmed that the vessel was not registered with their country, and it was therefore treated as a vessel without nationality thereby subjecting it to the jurisdiction of the United States. Onboard the vessel, the U.S.S. Billings boarding team detained De Los Santos and Victor Reyes-Martinez and recovered 630 kilograms of cocaine. On March 30, 2023, Reyes-Martinez pleaded guilty on March 30, 2023, and was sentenced to 57 months incarceration.
This case was investigated by the United States Coast Guard, Homeland Security Investigations and Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Evan Rikhye. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Chinese Nationals Guilty of Illegally Entering the United StatesRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Chunmei Zhang, 55, of China, was found guilty of illegal entry into the United States following a trial before Magistrate Judge Ruth Miller.
According to evidence introduced at trial, on July 25, 2023, Zhang and her husband, Sheng Chen, 55, arrived at the Cyril E. King airport in St. Thomas and attempted to board a Delta flight to New York. Both were referred to Customs and Border Protection for inspection as neither had a United States passport or any other travel documents in their possession. When interviewed, Zhang and Chen stated that they arrived in St. Thomas on July 24, 2023, by boat from Suriname and admitted paying approximately $25,000.00 to their traffickers to transport them to St. Thomas. Both Zhang and Chen are Chinese nationals, and no record exists that either applied for, sought, or received prior permission to enter or reside in the United States. On their convictions, Zhang and Chen were sentenced by Magistrate Judge Miller to time served.
These cases were investigated by Customs and Border Protection and prosecuted by Assistant United States Attorney Kyle Payne.
Buffalo man going to prison for more than 20 years for selling heroin and fentanyl that resulted in two deathsRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Isaiah Spain a/k/a Q, 39, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 10 grams or more of butyryl fentanyl, heroin, fentanyl, and furanyl fentanyl, was sentenced to serve 250 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Meghan E. Leydecker, who handled the case, stated that in August 2018, The West Seneca Police Department, New York State Police and DEA began investigating Spain’s drug trafficking activities. The investigation determined that Spain conspired with others to sell heroin, fentanyl, butyryl fentanyl and furanyl fentanyl, sales of which were subsequently linked with numerous drug overdoses, including two fatalities.
On November 4, 2017, Amherst Police responded to a 911 call in Williamsville, NY, where they located an unresponsive individual, identified as S.D., who was pronounced dead at the scene of an apparent drug overdose. The substances used by S.D. were purchased from Spain by another individual and sold to S.D. On August 24, 2018, West Seneca Police responded to a residence for a reported drug overdose. Upon arrival, an individual identified as S.C. was pronounced dead at the scene from an apparent drug overdose. The substances used by S.D. were purchased from Spain.
Between October 2018, and January 2019, investigators conducted a combined total of 13 controlled buys of suspected controlled substances from Spain. Following each controlled buy, the suspected controlled substance was analyzed and confirmed to contain butyryl fentanyl.
The sentencing is the result of an investigation by the West Seneca Police Department, under the direction of Chief Edward Baker, the New York State Police, under the direction of Major Eugene Staniszewski, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
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Bronx Man Charged with Stealing Hundreds of Thousands of Dollars’ Worth of Construction Utility Vehicles from NYCHA Housing DevelopmentsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the unsealing of a Complaint charging MAXIMO NUNEZ with theft of government property and conspiracy to commit theft of government property in connection with a years-long scheme in which he and others stole valuable construction utility vehicles (“Utility Vehicles”) from New York City Housing Authority (“NYCHA”) developments. NUNEZ was arrested this morning and will be presented before U.S. Magistrate Judge Sarah Netburn later today.
U.S. Attorney Damian Williams said: “As alleged, the defendant and others carried out a brazen scheme for years, stealing hundreds of thousands of dollars in valuable construction equipment that NYCHA needed to maintain the many public housing developments that thousands of New Yorkers call home. Thanks to the persistent efforts of the New York City Department of Investigation and the Special Agents and career prosecutors of my Office, this man now stands charged with this bold scheme.”
DOI Commissioner Jocelyn E. Strauber said: “As charged, Nunez and other co-conspirators stole at least 16 utility vehicles worth over several hundred thousand dollars from NYCHA. These vehicles are used to maintain NYCHA facilities for residents. NYCHA referred this matter to DOI and cooperated in this investigation, which involved the placement of GPS tracking devices on certain NYCHA utility vehicles and allowed law enforcement to recover one of the allegedly stolen vehicles. I thank the U.S. Attorney’s Office for the Southern District of New York for their partnership in this investigation and their commitment to hold accountable those who steal valuable government property.”
According to the allegations contained in the Complaint:[1]
From in or about January 2021 through in or about September 2022, on at least 13 different occasions, NUNEZ and three other co-conspirators (“CC-1,” “CC-2,” and “CC-3”) stole at least 16 Utility Vehicles from over a dozen NYCHA developments throughout New York City. Utility Vehicles are pieces of heavy equipment that NYCHA uses to complete regular construction and maintenance tasks.
NUNEZ and others stole the Utility Vehicles in the middle of the night when NYCHA employees were not present. They often used large trucks to carry out their scheme so that they could steal more than one Utility Vehicle at a time. Photographs taken from surveillance video of two of the thefts are below:
Utility Vehicles often retail for anywhere from $25,000 to $65,000 each. NUNEZ and others made hundreds of thousands of dollars by selling the Utility Vehicles to individuals who did not know that they were stolen.
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NUNEZ, 28, of the Bronx, New York, is charged with one count of conspiracy to commit theft of government property, which carries a maximum potential sentence of five years in prison, and one count of theft of government property, which carries a maximum potential sentence of 10 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of DOI and the Special Agents and Investigative Analysts of the U.S. Attorney’s Office.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jackie Delligatti is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is 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 herein should be treated as an allegation.
Brockton Man Indicted for Unlawful Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A previously convicted felon has been indicted by a federal grand jury in Boston for unlawfully possessing a Glock pistol and 18 rounds of ammunition.
Michael Whitfield, 42, of Brockton, was indicted on one count of being a felon in possession of firearms and ammunition. Whitfield was previously charged by criminal complaint on Sept. 13, 2023.
According to the charging documents, on March 6, 2023, upon arrival at a motor vehicle accident scene in Brockton, law enforcement observed Whitfield in a vehicle with significant damage, its airbag deployed and a broken passenger door window. It is alleged that there was a strong odor of alcohol coming from inside the vehicle and an empty tequila bottle was observed on the passenger seat floor. It is further alleged that a Glock 19X .9mm pistol loaded with 18 rounds was found on the driver’s side floorboard between Whitfield’s legs.
Due to a prior felony conviction stemming from 2006, Whitfield is prohibited from possessing firearms and ammunition.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to
$250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Plymouth County District Attorney’s Office, the Massachusetts State Police, the Brockton Police Department and the Brockton Fire Department. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Braymer Man Sentenced to 30 Years for Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – A Braymer, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute substantial quantities of methamphetamine.
Jason M. Potter, 41, was sentenced by U.S. District Judge Roseann Ketchmark on Wednesday, Nov. 8, to 30 years in federal prison without parole.
Potter was found guilty at trial on Feb. 16, 2023, of one count of conspiracy to distribute methamphetamine and one count of possessing methamphetamine with the intent to distribute.
Potter and co-defendant Daniel Dryden, 52, of Clinton, Mo., participated in a conspiracy to distribute methamphetamine from May 11 to July 15, 2020. Dryden was sentenced on June 29, 2023, to three years in federal prison without parole.
Lee’s Summit, Mo., police officers saw Potter’s black 2009 Nissan Maxima parked in the parking lot of America’s Best Value Inn on July 15, 2020. When Potter and Dryden came out of the hotel, Potter placed a black computer case and a blue cloth shopping bag in the rear passenger seat of the Maxima. Potter went back into the hotel while Dryden drove the Maxima to the front of the business, near the lobby doors. Potter came out of the hotel and got into the front passenger seat of the Maxima. Dryden drove out of the parking lot onto Blue Parkway.
Officers stopped the Maxima and arrested Potter, who had an outstanding parole warrant. Potter was in possession of 4.8 grams of methamphetamine and $3,610 in cash at the time of his arrest.
Officers searched the Maxima and found the computer bag, which contained several baggies with a total of 648.6 grams of methamphetamine, drug paraphernalia, and a money bag with more than $3,000 in cash.
According to court documents, Potter stayed at America’s Best Value Inn in Lee’s Summit, Mo. He was a friend of the motel’s manager, stayed in different rooms in the motel, and used it as his “main hub” for methamphetamine distribution.
This case was prosecuted by Assistant U.S. Attorneys Maureen A. Brackett and Stephanie C. Bradshaw. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lee’s Summit, Mo., Police Department, and the Springfield, Mo., Police Department.
Bitwise Industries Founders Irma Olguin Jr. and Jake Soberal Charged for $100 Million Fraud SchemeRead the Press Release
FRESNO, Calif. — Irma Olguin Jr. and Jake Soberal, the founders and leaders of the failed Fresno-based technology company Bitwise Industries, self-surrendered today on a federal complaint charging them with conspiring to commit wire fraud and taking more than $100 million from various businesses and individuals, U.S. Attorney Phillip A. Talbert announced.
“The defendants could have chosen simply to admit the failure of Bitwise’s business model. Instead, they used lie after lie to pull over $100 million into a dying venture through fraud,” U.S. Attorney Talbert said. “Olguin and Soberal fabricated bank statements, lied to investors, provided false financial information to their board of directors, forged documents, and used buildings Bitwise no longer even owned as collateral for loans, all while lining their own pockets. Our office will continue to investigate and prosecute those responsible for such financial crimes, and we are grateful for the hard work of the FBI and IRS Criminal Investigation, as well as the civil enforcement work of the United States Securities and Exchange Commission.”
“The alleged deceptive business practices of Mr. Soberal and Ms. Olguin Jr. have directly and negatively impacted over 900 families from the Fresno and Bakersfield communities. Today’s complaint is a starting point toward justice for those families,” said IRS Criminal Investigation Acting Special Agent in Charge Mark Silva of the Oakland Field Office. “These sorts of white-collar crimes often root from greed and mismanagement and leave hard working tax paying citizens damaged in their wake. Let me say this to any would be fraudulent business owners in pursuit of ill-gotten proceeds: The talented and motivated special agents from IRS Criminal Investigation and our law enforcement partners from the FBI will catch you.”
“Deceptive practices within the corporate world, as alleged in this case, have far-reaching consequences. Our dedicated team of special agents and professional staff worked tirelessly to uncover a complex web of misconduct,” stated Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We value our strong partnerships with the U.S. Attorney’s Office and the IRS Criminal Investigation. Together, we are resolute in our commitment to upholding justice, ensuring transparency, and breaking the cycle of financial wrongdoing. The collaboration between our team and our partners underscores the importance of holding wrongdoers accountable, reinforcing ethical leadership, and empowering individuals to report misconduct. It is through these efforts that we aim to make a meaningful difference in the fight against financial crimes.”
According to court records, Bitwise abruptly collapsed earlier this year despite recent reports the company was worth over $500 million and was financially sound. All of the company’s approximately 900 employees and apprentices were immediately furloughed and later laid off, and the company’s board of directors fired Olguin and Soberal.
The complaint filed this week alleges that beginning no later than January 2022, Olguin and Soberal agreed to lie to board members, investors, lenders, and others about Bitwise’s finances to obtain investments, loans, and other funding. They did so by fabricating financial information in board presentations and investor materials, and altering and forging bank statements, audits, and other financial records to inflate Bitwise’s revenues, cash balances, and property holdings. Much of the money went towards paying Bitwise’s payroll and fringe benefits, including Olguin and Soberal’s $600,000 per year salaries, outfitting the company’s office spaces, and repaying debts owed to prior lenders.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorneys Joseph D. Barton and Henry Z. Carbajal III are prosecuting the case.
If convicted, Olguin and Soberal each face a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
complaint_olguin_soberal_.pdfArmed Drug Trafficker Sentenced to Nine Years for Possessing Firearm and Distribution Quantities of FentanylRead the Press Release
Tampa, Florida – Senior U.S. District Judge Susan Bucklew has sentenced Eugene Washington, Jr. (36, Bradenton) to nine years in federal prison for possession of a firearm by a convicted felon and possession with the intent to distribute 40 grams or more of fentanyl. Washington had pleaded guilty on June 7, 2023.
According to the plea agreement, on the morning of August 12, 2022, officers from the Bradenton Police Department (BPD) responded to a call for service from a concerned citizen regarding an unresponsive individual sitting in the driver’s seat of his vehicle around the 700 block of 9th Street East in Bradenton. The car was stopped in traffic, facing the traffic light in the median lane. Once at the scene, the BPD officers asked Washington to exit the vehicle. As Washington exited the car, the officers noticed a silver and black Smith and Wesson SD40 .40 caliber pistol on the driver’s seat. Washington turned back into the car and appeared to reach for the firearm. The firearm was loaded with 11 rounds of ammunition.
Also recovered from inside the vehicle was a backpack, located on the passenger floorboard, that backpack contained a variety of controlled substances, including: 44.07 grams of fentanyl, 35.06 grams of methamphetamine, 93.86 grams of cocaine base, 13.91 grams of cocaine, 36.28 grams of hydrocodone, 9.99 grams of oxycodone, 433.37 grams of dimethylpentylone (a substituted cathinone), and 21.35 grams of cannabis. Washington later admitted that he had previously been convicted of distributing heroin and had served a federal prison sentence for that offense. As a convicted felon, Washington is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bradenton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys David W.A. Chee and Diego F. Novaes.
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.