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7 November 2023
La Oficina de Envigado Member Sentenced to 10 Years in Prison for Role in Drug Trafficking Conspiracy Tied to Medellín CartelRead the Press Release
BOSTON – A Colombian man was sentenced yesterday in federal court in Boston for his role in a drug trafficking, money laundering and extortion conspiracy connected to organized crime in the Republic of Colombia.
Fabio Yepes Sanchez, 57, of Medellín, was sentenced by U.S. District Court Judge Leo T. Sorokin to 10 years in prison and five years of supervised release. In June 2023, Zapata pleaded guilty to one count of money laundering conspiracy, one count of extortion conspiracy, one count of interstate and foreign travel or transportation in aid of racketeering, and one count of conspiracy to possess with intent to distribute cocaine. Yepes Sanchez was indicted by a federal grand jury in May 2020 along with co-conspirators Mario Zapata Velez, Miguel Colindres and Juan Pablo Ariasgil.
Yepes Sanchez and Zapata Velez were members of La Oficina de Envigado (La Oficina), a criminal organization based in Medellín, Colombia. La Oficina originated in the 1980s when its members provided enforcement and collection services for the Medellín Cartel, including deceased Medellín Cartel leader Pablo Escobar. Today, La Oficina is involved in international narcotics trafficking, drug debt collection, money laundering, extortion and murder for hire.
Yepes Sanchez and Zapata Velez conspired to use threats to extort approximately $750,000 in drug debt from two cocaine traffickers based in Massachusetts. Yepes Sanchez and Zapata Velez also conspired with Colindres and Pablo Ariasgil to obtain and sell five kilograms of cocaine from the Massachusetts traffickers and then repatriate the drug proceeds to Colombia, in partial satisfaction of the outstanding drug debt.
In May 2022, Ariasgil was sentenced to four years in prison and four years of supervised release after previously pleading guilty to his role in the cocaine conspiracy. In April, 2023, Colindres was sentenced to 51 months in prison and three years of supervised release after previously pleading guilty to his role in the cocaine conspiracy. In September 2023, Zapata Velez was sentenced to five years in prison and three years of supervised release after previously pleading guilty to his role in the international narcotrafficking and extortion conspiracies.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance in the investigation was provided by the Criminal Division’s Office of International Affairs of the Justice Department; the Internal Revenue Service’s Criminal Investigations in Boston; and the Government of Colombia. Assistant U.S. Attorneys Lauren A. Graber and Jared C. Dolan of the Criminal Division 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.
Kalispell felon sentenced to more than three years in prison for illegal possession of 10 firearms, ammunitionRead the Press Release
MISSOULA — A Kalispell resident with three felony convictions was sentenced today to three years and one month in prison, to be followed by three years of supervised release, after law enforcement recovered 10 firearms from his home after three incidents involving firearms, U.S. Attorney Jesse Laslovich said.
Jose Angel Estrello, 40, pleaded guilty in June to prohibited person in possession of firearms and ammunition.
U.S. District Judge Donald W. Molloy presided.
The government alleged in court documents that Estrello had three prior felony convictions, including two convictions for robbery in California, and was prohibited from possessing firearms and ammunition. In July 2022, Flathead County Sheriff’s deputies responded to a report of shots fired near McMannamy Draw and met with Estrello. Estrello was hostile toward the deputies and made comments about getting an AR-15 to defend himself against law enforcement. The next day, sheriff’s deputies responded to a disturbance involving a weapon in a campground. Deputies learned that Estrello exchanged words with another person about a parking spot, pulled a handgun out of his pocket and stated, “This is how we take care of this in Compton.” Deputies responded to a third incident involving road rage near Kalispell and determined that Estrello had pointed a gun at another family. In August 2022, law enforcement searched Estrello’s residence and located 10 firearms, seven magazines and assorted ammunition.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case. The Flathead County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Justice Department Secures ADA Agreement with California County to Improve Mental Health ServicesRead the Press Release
The Justice Department announced today that it has filed a motion to intervene in Disability Rights California v. Alameda County and a proposed settlement agreement with Alameda County, California, and private plaintiffs to resolve allegations that the county violates Title II of the Americans with Disabilities Act (ADA) in its provision of mental health services.
Specifically, the proposed settlement agreement would resolve the department’s findings that Alameda County fails to provide services to qualified individuals with mental health disabilities in the most integrated setting appropriate to their needs. Instead, the department found that the county places too many people with mental illness into institutions such as John George Psychiatric Hospital and other facilities. In Olmstead v. L.C., the U.S. Supreme Court held that Title II of the ADA requires public entities, in providing services to persons with disabilities, to do so in their homes and communities when appropriate services can reasonably be provided in those settings to individuals who want them.
“It’s time to bring an end to the unnecessary incarceration and over-institutionalization of people with mental health disabilities in our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “People with mental health disabilities have the right to live in their own homes and communities with services that are effective in supporting their recovery instead of being relegated to repeated hospitalization and avoidable involvement with the criminal justice system. This agreement reaffirms the Justice Department’s commitment to ensuring that people with mental illness can access the care they need free from unnecessary barriers.”
The proposed settlement agreement requires the county to provide timely mobile crisis response services throughout the county and intensive mental health, housing, and employment services. The agreement addresses planning for people being discharged from psychiatric facilities and the Santa Rita Jail to help strengthen connections to critical mental health services. The proposed settlement also requires the county to reach out and engage proactively with people who have serious mental illness.
The department appreciates the collaboration with plaintiffs’ counsel from Disability Rights California, Bazelon Center for Mental Health Law, Disability Rights Education and Defense Fund and Goldstein, Borgen, Dardarian & Ho. The department recognizes Alameda County for its commitment to compliance with the ADA.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Members of the public may report possible civil right violations at www.civilrights.justice.gov.
View the filing here.
Justice Department Finds Minnesota City’s “Crime-Free” Housing Program Discriminates Against Tenants with Mental Health DisabilitiesRead the Press Release
The Justice Department announced today that the city of Anoka, Minnesota, violated the Americans with Disabilities Act (ADA) and the Fair Housing Act by denying tenants with mental health disabilities an equal opportunity to receive emergency assistance.
Following a comprehensive investigation, the department found that through the city’s “crime-free” housing program, the city discouraged and prevented tenants with mental health disabilities and those associated with them from using its emergency response service. The department found that people with mental health disabilities and their families or service providers refrained from calling for help to avoid risking their current housing or future housing prospects.
“Using a so-called ‘crime-free’ housing ordinance to invoke fear and prevent people with mental health disabilities from exercising their right to access housing and seek emergency assistance is discriminatory and runs afoul of our nation's civil rights laws,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “This scheme is cloaked as a public safety measure but in reality it callously targets people with disabilities and their loved ones by penalizing them simply for reaching out for emergency assistance in times of need. The Justice Department is committed to ensuring that every person, including those with disabilities, can access emergency services and enjoy access to fair housing without fear of retaliation.”
Under the city’s rental licensing and so-called “crime free” housing ordinance, the city can penalize landlords for “nuisance calls” to their properties. Nuisance calls include disorderly conduct and what the city describes as repeated “unfounded” calls to the police. The city can issue fines and revoke the landlord’s license if the landlord does not pursue eviction after nuisance calls to their property. When tenants with mental health disabilities and those associated with them (like their families or landlords) requested or received emergency assistance, they risked eviction, fines or loss of a rental license.
For years, the city also sent weekly reports to licensed landlords detailing all calls for emergency service from all rental properties. Along with a general description, each report included the name and address of those involved and often revealed personal and sensitive information about the person’s mental health disabilities, such as their diagnoses, medications and names of psychiatric or medical providers. Some even shared intimate details about suicide attempts. The city used these reports to notify landlords of potential nuisance calls and encourage landlords to evict tenants.
The department provided its findings and minimum remedial measures necessary in a letter to the city. Specifically, the department asks the city to change its policies and procedures, designate an ADA coordinator, and train staff.
The Civil Rights Division’s Disability Rights Section and the U.S. Attorney’s Office for the District of Minnesota investigated the case.
People with information about these findings are encouraged to contact the department via email at [email protected] or by calling a toll-free number at 888-473-3940. For more information on the ADA, please visit ADA.gov or call the toll-free ADA Information Line at 800-514-0301 (TTY 833-610-1264).
View the letter of findings here.
Illegal Firearm Possession Lands Oklahoma City Man in Federal Prison for Two DecadesRead the Press Release
OKLAHOMA CITY – Yesterday, MICHAEL ANDRE CAMPBELL, 62, of Oklahoma City, was sentenced to serve 240 months in federal prison for illegally possessing a firearm after a previous felony conviction, announced U. S. Attorney Robert J. Troester.
On August 2, 2022, a federal grand jury returned a Superseding Indictment against Campbell, charging him with being a felon in possession of a firearm on or about July 1, 2021.
In June 2023, Campbell was tried by a federal jury and found guilty. Evidence presented at trial indicated that on July 1, 2021, an individual called law enforcement to report a larceny in progress at their home. Oklahoma City Police Department officers arrived and encountered Campbell, who had a loaded handgun in his waistband.
At the sentencing hearing yesterday, U. S. District Judge Joe Heaton sentenced Campbell to serve 240 months in federal prison. In announcing the sentence, Judge Heaton noted the circumstances of the offense and Campbell’s criminal history, which includes an extensive history of robberies.
According to public records, Campbell’s felony convictions include:
- Robbery by force in Tulsa County District Court case number CF-1987-1657;
- Robbery with a firearm in Tulsa County District Court case number CF-1987-1662;
- Robbery with a firearm or imitation firearm in Tulsa County District Court case number CF-1992-3411;
- Robbery with a dangerous weapon in Oklahoma County District Court case number CF-2004-1734;
- Trafficking in a controlled dangerous substance in Oklahoma County District Court case number CF-2004-1850; and
- Two counts of robbery with a dangerous weapon in Oklahoma County District Court case number CF-2004-3266.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorneys Daniel Gridley, Allison B. Christian, and Jason M. Harley prosecuted the case.
This case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001. For more information about Project Safe Neighborhoods, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public record for more information.
Honduran National Sentenced for Assaulting Customs and Border Protection OfficersRead the Press Release
DEL RIO, Texas – A Honduran national was sentenced in a federal court in Del Rio to 18 months in prison for assaulting, resisting or impeding federal officers, causing bodily injury.
According to court documents, Jesus Alexander Bardales Ramirez, 26, was seen running into the United States from Mexico, chased by Mexican authorities, toward Customs and Border Protection officers (CBPOs) at the Eagle Pass port of entry. When CBPOs attempted to restrain Ramirez, the migrant pulled away, causing him and the officers to fall to the ground.
Following several minutes of engagement, CBPOs were able to subdue and handcuff Ramirez. Ramirez continued to resist and kick at the officers throughout attempts to place him in a CBP vehicle, striking several CBPOs in their arms, bodies and faces.
After CBPOs managed to secure him in the vehicle, Ramirez began to strike his own head against the vehicle window, and when an officer tried to secure Ramirez’s head in an attempt to prevent Ramirez from injuring himself, Ramirez bit the officer on the arm.
“This case is a reminder of the dangers and hostility our law enforcement officers at the border can face on any given day,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I’m grateful for the commitment of these CBP officers and all of our partners who bear the same risks. Know that we will not tolerate acts of violence on our federal officers, and offenders will be held accountable.”
CBP investigated the case.
Assistant U.S. Attorney Zachary Bird prosecuted the case.
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Hardy County men sentenced for federal drug trafficking crimesRead the Press Release
ELKINS, WEST VIRGINIA – Two Moorefield, West Virginia, men were sentenced today for methamphetamine trafficking.
Steven Ray Davy, Jr., age 37, was sentenced today to 14 years in federal prison for 10 counts involving methamphetamine trafficking and firearms. Eric Wayne Baker, age 41, was sentenced to 52 months for possession with intent to distribute methamphetamine. According to court documents and statements made in court, Davy and Baker were working with others to sell methamphetamine in Hardy County. A search warrant at Davy’s home uncovered methamphetamine, pills containing fentanyl, cocaine, drug paraphernalia, several firearms, and a video surveillance system. During a traffic stop, officers found methamphetamine inside Baker’s vehicle.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Hannibal Man Sentenced to 6 Years in Prison for Making Pipe BombsRead the Press Release
ST. LOUIS – A man from Hannibal, Missouri who made multiple illegal pipe bombs in 2022 was sentenced Tuesday to six years in federal prison.
Joshua Eugene Rickey, 34, admitted making a series of pipe bombs using plastic and metal pipes and materials from fireworks between July 4, 2022 and Aug. 13, 2022. Rickey admitted detonating two.
During Tuesday’s sentencing hearing in front of U.S. District Judge John A. Ross, Assistant U.S. Attorney Nino Przulj said there was a progression in both the size of the bombs Rickey made and the ongoing danger those bombs presented to the community. One of the seized bombs required detonation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) because it could not be safely handled.
Courtesy of the Hannibal Police Department.“This case illustrates ATF’s commitment in preventing attacks instead of responding to their aftermath,” said Special Agent in Charge Bernard Hansen for the ATF’s Kansas City Field Division. “The conviction and now federal sentencing of this individual demonstrates our steadfast efforts to hold accountable individuals who threaten the safety of our communities.”
Rickey pleaded guilty in July in U.S. District Court in St. Louis to one count of manufacture of one or more unregistered destructive devices and one count of possession of one or more unregistered destructive devices.
The ATF and the Hannibal Police Department investigated the case. Assistant U.S. Attorney Nino Przulj prosecuted the case.
Gloucester County Man Sentenced to 21 Months in Prison for Fraudulently Obtaining More Than $400,000 in Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A Gloucester County, New Jersey, man was sentenced today to 21 months in prison for illegally obtaining more than $400,000 in unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced.
Willie Carter, 24, of Paulsboro, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Reneé Marie Bumb to an information charging him with wire fraud. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in the case and statements made in court:
From July 2020 to October 2020, Carter submitted fraudulent unemployment insurance benefit applications to various states. These states provided, and Carter falsely obtained, more than $400,000 in unemployment insurance benefits.
In addition to the prison term, Judge Bumb sentenced Carter to three years of supervised release and ordered restitution of $469,582.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone; postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Charles A. Nielsen, Philadelphia Division; special agents of the FBI, under the direction of Acting Special Agent in Charge Richard Langham in Philadelphia, and special agents of the Department of Homeland Security, Office of Inspector General, under the direction of Inspector General Joseph V. Cuffari, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Fruitland Man Pleads Guilty to AssaultRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Elijah Cudei Etsitty pled guilty to assault resulting in serious bodily injury. Etsitty, 27, of Fruitland, and an enrolled member of the Navajo Nation, will remain on conditions of release pending sentencing, which has not been scheduled.
According to court records, on June 27, 2021, Etsitty assaulted Jane Doe, which caused serious bodily injury, including head and facial injuries and seizure activity following the assault.
At sentencing, Etsitty faces up to ten years in prison followed by 3 years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Shiprock Police Department. Assistant United States Attorney Kimberly Bell is prosecuting the case.
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Former U.S. Government Employee Pleads Guilty to Sexual OffensesRead the Press Release
WASHINGTON – Brian Jeffrey Raymond, 47, a former U.S. Government employee, pleaded guilty today to drugging and sexually abusing numerous women in multiple countries, including photographing and video recording dozens of nude and partially nude women without their consent while they were unconscious and incapable of consenting.
The plea was announced by U.S. Attorney Matthew M. Graves, Acting Assistant Attorney General Nicole M. Argentieri, of the Justice Department’s Criminal Division, Director Carlos F. Matus, of the U.S. Department of State’s Diplomatic Security Service (DSS), and FBI Special Agent in Charge Wayne A. Jacobs, of the Washington Field Office’s Criminal and Cyber Division.
According to court documents, Raymond, of La Mesa, California, was most recently employed by the U.S. government at the U.S. Embassy in Mexico City, Mexico. Raymond admitted to drugging and sexually assaulting several women in his embassy-leased housing and elsewhere between 2006 and 2020. Additionally, Raymond admitted other offenses that occurred over this 14-year period and involved a total of 28 women he photographed or video recorded nude or partially nude. Many of the recordings show Raymond touching the women’s bodies while they were unconscious and incapable of consent. Raymond attempted to delete the explicit photographs and videos depicting the victims after learning about the criminal investigation.
Raymond will be sentenced on Sept. 19, 2024. Under the plea agreement, Raymond will face between 24 and 30 years in prison, supervised release for life, and mandatory restitution to the victims of his criminal offenses. A federal district court judge will determine the final sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by the DSS Office of Special Investigations and the FBI Washington Field Office. The Justice Department’s Office of International Affairs and National Security Division provided valuable assistance, along with the FBI’s Legal Attache office in Mexico City.
The case is being prosecuted by Assistant U.S. Attorney Meredith Mayer-Dempsey, of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorneys Angela Buckner and Katharine Wagner, of the Justice Department’s Human Rights and Special Prosecutions Section.
The Department of Justice gratefully acknowledges the Government of Mexico, to include the Fiscalía General de la República and the Fiscalía General de Justicia de la Ciudad de México, for their extraordinary efforts, support and cooperation during the investigation.
Former U.S. Government Employee Pleads Guilty to Sex OffensesRead the Press Release
A former U.S. government employee pleaded guilty today to drugging and sexually abusing numerous women in multiple countries, including photographing and video recording more than two dozen nude and partially nude women without their consent while they were unconscious or incapable of consenting.
According to court documents, Brian Jeffrey Raymond, 47, of La Mesa, California, was employed by the U.S. government at the U.S. Embassy in Mexico City. Raymond admitted to drugging and sexually assaulting several women in his embassy-leased housing and elsewhere between 2006 and 2020. Additionally, Raymond admitted that, over 14 years, he photographed or video recorded 28 victims while they were nude or partially nude. Many of the recordings show Raymond touching and manipulating the victim’s bodies while they were unconscious and incapable of consent. Raymond attempted to delete the explicit photographs and videos depicting the victims after learning about the criminal investigation.
Under the plea agreement, Raymond will face between 24 and 30 years in prison and supervised release for life. He will also have to pay mandatory restitution to the victims of his criminal offenses. Sentencing hearings are scheduled for Sept. 18 and 19, 2024. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; U.S. Attorney Matthew M. Graves for the District of Columbia; Deputy Assistant Director William Ferrari of the U.S. Department of State’s Diplomatic Security Service (DSS), Office of Special Investigations; and Special Agent in Charge James A. Dawson of the FBI Washington Field Office’s Criminal Division made the announcement.
The DSS Office of Special Investigations and FBI Washington Field Office are investigating the case. The Justice Department’s Office of International Affairs and National Security Division provided valuable assistance. The FBI’s Legal Attaché office in Mexico City also provided especially valuable assistance.
Trial Attorneys Angela Buckner and Katharine Wagner of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Meredith Mayer-Dempsey for the District of Columbia are prosecuting the case.
The Justice Department gratefully acknowledges the government of Mexico, including the Fiscalía General de la República, Fiscalía General de Justicia de la Ciudad de México, and Secretaría de Relaciones Exteriores, for their extraordinary efforts, support, and cooperation during the investigation.
Former San Antonio Health Services Employee Sentenced for Receiving KickbacksRead the Press Release
SAN ANTONIO – A San Antonio woman was sentenced in a federal court today to 10 years of probation and fined $200,000 for two charges related to healthcare kickbacks.
According to court documents, from June 2014 to April 2019, Amber Ashley Price, 40, engaged in a conspiracy to pay and receive kickbacks in return for sending prescriptions to specific pharmacies. Some prescriptions were paid for by federal insurance programs including Medicare, Medicaid, the Federal Employees Health Benefits (FEHB) Program, and TRICARE. Price, an employee of Kindred Home Health, would also refer patients to other home health agencies in the San Antonio area for a kickback payment. At least some of the patients referred were Medicare beneficiaries.
“Illegal kickbacks are a hidden drain on our healthcare system. They raise costs and prevent patient choice,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This case reinforces our ongoing commitment to policing this all too common practice and ensuring the integrity of our public health insurance programs.”
“The FBI and our law enforcement partners are working hard every day to protect patients and federal health care programs from fraud and abuse,” said Special Agent in Charge Oliver E. Rich Jr. for the FBI San Antonio Division. “Healthcare fraud affects patient safety, quality of healthcare, and healthcare costs. Amber Price knew what she was doing was unethical and illegal. Today’s sentence sends a message to those who would use kickbacks and fraudulent schemes to take advantage of the health care system, that these types of crimes will not be tolerated.”
Codefendant Christopher Patrick Cruz, 49, of San Antonio, is scheduled to be sentenced Nov. 21. Cruz owned a medical marketing business and conspired with Price to increase the volumes of prescriptions of specific pharmacies.
The FBI; Texas Attorney General’s Office Medicaid Fraud Control Unit; U.S. Department of Health and Human Services Office of Inspector General; and the Defense Criminal Investigation Service investigated the case.
Assistant U.S. Attorney Justin Chung prosecuted the case.
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Former Pontiac Man Convicted in Multistate Heroin and Meth Shipping ConspiracyRead the Press Release
DETROIT – A federal jury convicted Anthony Roy Milligan, Jr., on drug conspiracy charges, United States Attorney Dawn N. Ison announced today. This conviction concluded a four-day trial held in Detroit before U.S. District Judge Mark A. Goldsmith.
Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration, Detroit Division, and Rodney Hopkins, U.S. Postal Inspector in Charge, U.S. Postal Inspection Service, Detroit Division.Anthony Milligan, 37, formerly of Pontiac, was convicted of conspiracy to distribute and possess with intent to distribute more than 1 kilogram of heroin and more than 500 grams of methamphetamine. Milligan was also convicted of possession of more than 100 grams of heroin with intent to distribute. Evidence at trial showed that Milligan sent packages of heroin and methamphetamine through the U.S. mail to his network of distributors across the county. The United States Postal Inspection Service and the Drug Enforcement Administration intercepted several of those packages, and traced them back to Milligan, a previously convicted drug dealer.
“Our office will vigorously pursue drug traffickers who traffic in dangerous drugs like heroin and methamphetamine.” stated United States Attorney Dawn N. Ison. “This verdict is a result of outstanding teamwork between the U.S. Postal Service and the Drug Enforcement Administration.”
“This verdict should also serve as a reminder to those who abuse our community by peddling dangerous narcotics – law enforcement will find you and bring you to justice,” said DEA Special Agent in Charge Greene.
“The conviction of Mr. Milligan, Jr., is another example of the commitment the U.S. Postal Inspection Service and our law enforcement partners have in identifying, disrupting, and arresting those individuals who attempt to distribute illicit drugs through the U.S. Mail," said Rodney Hopkins, Inspector in Charge of the U.S Postal Inspection Service's Detroit Division. "We will continue to pursue those drug traffickers who attempt to exploit the distribution channels of the Postal Service and bring harm to our employees and the community. I would like to thank the Detroit Drug Enforcement Agency Field Office and the U.S. Attorney’s Office for the Eastern District of Michigan for their persistence and dedication in this investigation.”
Given the type and quantity of drugs involved and because he is a repeat drug-trafficking offender, Milligan is facing a mandatory 15-year prison sentence, with a maximum possible sentence of life imprisonment.
This case was investigated by the Drug Enforcement Administration and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Robert White and Thomas Franzinger.
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 New York Lawyer Sentenced to Nearly 3 Years in Prison for Accepting $2.2 Million Kickback in LADWP Corrupt Litigation SchemeRead the Press Release
LOS ANGELES – A disbarred New York City lawyer, who simultaneously represented the Los Angeles Department of Water and Power (LADWP) and a ratepayer suing the City of Los Angeles in the wake of an LADWP billing debacle, was sentenced today to 33 months in federal prison for accepting a kickback of nearly $2.2 million for causing another lawyer to purportedly represent his ratepayer client in a collusive lawsuit against the city, which enabled the city to settle the case on favorable terms.
Paul O. Paradis, 60, of Scottsdale, Arizona, who once ran the Manhattan-based Paradis Law Group, was sentenced by United States District Judge Stanley Blumenfeld Jr.
At today’s hearing, Judge Blumenfeld said Paradis intentionally placed himself “at the center of sophisticated and greedy schemes of corruption that wreaked havoc on individuals and institutions alike.” Judge Blumenfeld further explained that Paradis was motivated by “pure greed” and said the level of corruption in the case was “mind-boggling.”
Paradis pleaded guilty in January 2022 to one count of bribery.
In 2013, LADWP implemented a new billing system that it had procured from an outside vendor, PricewaterhouseCoopers (PwC). After LADWP rolled out the new system, hundreds of thousands of LADWP ratepayers received massively inflated and otherwise inaccurate utility bills. Soon afterward, the city and LADWP faced multiple class-action lawsuits filed by ratepayers alleging harm resulting from the faulty billing system.
In December 2014, the Los Angeles City Attorney’s Office retained Paradis as special counsel to represent the city in a lawsuit against PwC. When Paradis began representing the city as special counsel in the PwC litigation, the Los Angeles City Attorney’s Office was aware that he was simultaneously representing Antwon Jones, a ratepayer who had a claim against LADWP arising from billing overcharges. Jones was unaware that his lawyer, Paradis, also represented his intended adversary.
At a February 2015 meeting with at least one senior member of the City Attorney’s Office, Paradis was authorized and directed to find counsel that would be friendly to the city to supposedly represent Jones in a class-action lawsuit against the city. Under this so-called “white knight” strategy, the forthcoming Jones v. City of Los Angeles lawsuit would be used as a vehicle to settle all existing LADWP-billing-related claims against the city on the city’s desired terms.
Soon thereafter, Paradis recruited an Ohio lawyer to nominally represent Jones in the white knight lawsuit with the understanding that Paradis would do virtually all the work. In exchange, and unbeknownst to the city, Paradis and the Ohio lawyer agreed that Paradis would receive 20% of the Ohio lawyer’s fees in the Jones v. City case as a secret kickback.
In July 2017, a Los Angeles Superior Court judge issued a final approval of the $67 million settlement agreed to by the parties in Jones v. City, including approximately $19 million in plaintiffs’ attorney fees, of which the Ohio lawyer and his law firm obtained approximately $10.3 million. The Ohio lawyer then secretly paid $2,175,000 to Paradis, disguising the kickback as a real estate investment, and funneling it through shell companies that Paradis and the Ohio lawyer had set up exclusively for the purpose of transmitting and concealing the illicit payment.
Paradis also admitted bribing LADWP’s general manager, David H. Wright, to obtain a lucrative $30 million no-bid contract in June 2017 to remediate LADWP’s billing system. In another secret deal, Wright lobbied the LADWP Board to approve the contract for Aventador Utility Solutions, a downtown Los Angeles-based cyber services company formed by Paradis, in exchange for Paradis’ promise to make Wright Aventador’s future CEO and give him a $1 million annual salary and luxury car.
At the time it approved the no-bid contract, the LADWP Board was not informed that Paradis had ghostwritten a May 2017 independent monitor report on the Jones v. City settlement on which LADWP based its decision. The Paradis-written report claimed that LADWP could not meet its obligations under the Jones v. City settlement agreement unless it contracted with Aventador. The LADWP Board also was unaware that Wright was advocating for the award of the $30 million no-bid contract to Paradis’s company because he had been bribed.
Paradis pled guilty to a cooperation plea agreement that requires Paradis to provide information to federal investigators as well as to the State Bar of California, which is conducting its own disciplinary investigation related to the collusive litigation scheme, in exchange for potential sentencing consideration.
Federal prosecutors said Paradis’ cooperation helped to secure the guilty pleas of Wright, who also pleaded guilty to bribery, Thomas H. Peters, the former litigation chief of the City Attorney’s Office, who pleaded guilty to extortion in connection with covering up the collusive litigation, and David F. Alexander, LADWP’s former Chief Information Security Officer, who pleaded guilty to lying to the FBI about bribery-related conversations with Paradis.
In court papers and at today’s hearing, federal prosecutors recommended a sentence of 18 months’ imprisonment based on Paradis’ cooperation with the federal and State Bar of California investigations. Judge Blumenfeld acknowledged the basis for the government’s recommendation but stated a higher sentence was necessary to account for Paradis’ conduct, which Judge Blumenfeld said, “shattered public confidence in the government and legal profession.”
Wright and Alexander are serving federal prison sentences of six years and four years, respectively, after pleading guilty to felony offenses in this case. Peters was sentenced to probation.
The FBI investigated this matter.
Assistant United States Attorneys J. Jamari Buxton and Susan S. Har of the Public Corruption and Civil Rights Section prosecuted this case.
Former Jail Corrections Officer, Wife Plead Guilty to Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – A former corrections officer at the Jefferson City Correctional Center and his wife pleaded guilty in federal court today to charges related to video recording their sexual assault of a child victim.
Paul Emerson Schofield, 35, and his wife, Sara Ellen Schofield, 30, both of Jefferson City, each pleaded guilty in separate appearances before U.S. Magistrate Judge Willie J. Epps, Jr., to one count of conspiracy to produce child pornography and one count of producing child pornography. The Schofields have been in federal custody without bond since their arrest on July 13, 2022.
By pleading guilty today, Paul and Sara Schofield each admitted they participated in a conspiracy to produce child pornography over a nearly three-year period from July 29, 2019, to June 7, 2022. A child victim under the age of 12 was used to produce child pornography.
The investigation began when law enforcement received a CyberTip from the National Center for Missing and Exploited Children on April 25, 2022. Kik, a free online social media platform, reported that a user later identified as Paul Schofield had uploaded multiple videos of child sexual exploitation material.
Paul Schofield was active in the child pornography trading community. Multiple Kik chats were located in which he was distributing and receiving child pornography and discussing child molestation.
Law enforcement officers executed a search warrant at the Schofields’ residence on June 7, 2022. A forensic examiner conducted a preview of Paul Schofield’s cell phone and located several videos of child pornography, including infants engaged in sexual contact with adults. Examiners later found videos on the phone of both Paul and Sara Schofield sexually assaulting an unconscious 4-year-old victim.
On June 9, 2022, law enforcement officers executed another search warrant at the Schofields’ residence. Officers seized Sara Schofield’s cell phone, which contained another sexually explicit video of the same 4-year-old victim in which the voices of Paul and Sara Schofield can be heard.
At the time of the offense, Paul Schofield was employed as a corrections officer at the Jefferson City Correctional Center in Jefferson City.
Under the terms of today’s plea agreements, the government and the defendants agree to recommend a sentencing range between 30 years and 40 years in federal prison without parole. The sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley Turner. It was investigated by the Boone County, Mo., Sheriff’s Office Cyber Crimes Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Florida Attorney Sentenced to 14 Years in Federal Prison for Racketeering Relating to Operation of His Tallahassee Law Firm and Investment CompaniesRead the Press Release
TALLAHASSEE, FLORIDA – Phillip Timothy Howard, 62, of Tallahassee, Florida, was sentenced to fourteen years in federal prison after previously pleading guilty to racketeering (RICO). The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“The defendant should have been protecting the interest of his injured clients, rather than swindling their investments,” said U.S. Attorney Coody. “Today’s sentence both punishes the defendant’s criminal conduct and should serve as a significant deterrent to others who would selfishly steal to unlawfully enrich themselves. With our law enforcement partners, we remain committed to investigating and prosecuting those who engage in such fraudulent conduct.”
Court documents reflect between December 2015, and January 2018, Howard, a Florida attorney, along with associates and employees of his Tallahassee law firm (Howard & Associates, P.A.) engaged in a criminal Enterprise to defraud his clients of funds from an NFL class-action lawsuit. In addition to his law firm, Howard used several Tallahassee investment companies (Cambridge Capital Group, LLC; Cambridge Capital Wealth Advisors, LLC; Cambridge Capital Advisors, LLC; Cambridge Capital Funding, Inc., Cambridge Capital Group Equity Option Opportunities, L.P.; and Cambridge Capital Partners, L.P.) under his control to steal from clients. Howard, and others conducted and participated in the affairs of the Enterprise, through a pattern of racketeering activity, namely, wire fraud and money laundering. As part of his representation, Howard fraudulently enticed his clients to invest their retirement funds with his investment companies while failing to disclose the structure of the Enterprise, the conflicts of interest, the criminal background of persons associated with or employed by the Enterprise, and the true nature of the investment companies’ funds.
Despite reassuring investors that their money was secure, Howard never informed them that almost none of the investment funds yielded a return and failed to disclose that the investment funds had been commingled with funds used to operate his law firm and to issue payroll for its staff, pay Howard’s personal mortgages, and otherwise personally enrich Howard.
“Phillip Howard weaponized the trust of others,” said Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division. “As an attorney, he should have been helping his ailing clients invest in a better future, but instead he stole from their pocketbooks for his own personal gain. And when that wasn’t enough, he exploited the trust of third-party lenders, destabilizing businesses that were reliant on his honesty and integrity. The FBI and our partners will never stop working to protect innocent people and companies from fraud like this.”
In addition, the former NFL player investors were provided fraudulent quarterly and year-end investment statements which indicated that investor funds were allocated into two separate investment funds, including a fund designed specifically to invest in equities. In reality, there were no separated, dedicated investment funds, and the bank accounts for the Enterprise had little or no money. Howard and others fraudulently obtained over $4 million through such conduct.
“IRS-CI agents put a full blitz on Phillip Howard; today’s sentencing is another example of IRS-CI’s ability to quickly tackle those who lie and mislead victims for their own personal enrichment,” said Tara K. Reed IRS-CI Acting Special Agent in Charge. “As an attorney, Howard should have been protecting the interest of his clients rather than intentionally sacking their investments.”
Additionally, Howard sought third-party lenders that would be willing to lend money to Howard’s former NFL clients in advance of their potential NFL concussion settlements as part of the NFL class-action lawsuit, and to Howard as litigation funding for the NFL class-action lawsuit. To obtain such funds for himself and his clients, Howard provided false and fraudulent information, including numerous material misrepresentations and omissions, to the lenders. Howard and others fraudulently obtained and attempted to obtain approximately $8 million from third-party lenders through such conduct.
Howard also solicited investment in a real estate project located in Jacksonville, Florida, and in doing so, promised the investor certain investment returns within a specified period. After the investor transferred money to the investment company, Howard and an employee falsely told the investor that additional money was needed to close the real estate deal. In reliance on this false promise, the investor transferred additional proceeds, only to be told several months that the real estate investment funds were secure and would be returned to her. Howard fraudulently obtained and attempted to obtain over $520,000 from this investor through this conduct.
Howard’s prison sentence will be followed by three years of supervised release, and he will also be required to pay restitution in the amount of $12.64 million.
This conviction was the result of a joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service–Criminal Investigations, with assistance from the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The case was prosecuted by Assistant United States Attorneys Justin M. Keen and David P. Byron.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former FBI Contractor Uses Popular Video Game Platform to Solicit Preteens for Child Sexual Abuse MaterialRead the Press Release
ALEXANDRIA, Va. – A former FBI contractor pleaded guilty today to production and receipt of child sexual abuse material (CSAM).
According to court documents, beginning in February, Brett Janes, 26, of Arlington, groomed a 13-year-old minor (MV1) to transition from playing Valorant with him, a popular first-person shooter game, to engaging in “strip” games on a video chat function in Discord. Although MV1 did not want to play this game, Janes employed threats of suicide, various money payments through CashApp, and flattery, until MV1 produced CSAM for him.
In addition, a search warrant revealed Janes was communicating with at least a dozen other minors. Of those minors, he convinced one 12-year-old boy to produce CSAM and attempted to entice another 14-year-old boy to produce CSAM. Janes manipulated these minors by befriending, flattering, and outright begging them for content. A review of his devices revealed he purchased hundreds of videos and images of CSAM from the internet, including graphic videos of prepubescent children being raped.
Janes pleaded guilty to one count of sexual exploitation of children and one count of receipt of child pornography. He is scheduled to be sentenced on February 27, 2024, and faces a mandatory minimum of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division; and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Significant assistance was provided by the Arlington County Police Department and the Galloway Township Police Department in New Jersey.
Assistant U.S. Attorney Laura Withers and Special Assistant U.S Attorney McKenzie Hightower are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 1:23-cr-140.
Former FBI Contractor Pleads Guilty to Production and Receipt of Child Sexual Abuse MaterialRead the Press Release
A former FBI contractor pleaded guilty today to production and receipt of child sexual abuse material (CSAM).
According to court documents, beginning in February, Brett Janes, 26, of Arlington, Virginia, enticed a 13-year-old minor he met through playing Valorant, a popular first-person shooter game, to engage in “strip” games on a video chat in Discord. Janes threatened to commit suicide and sent the victim payments through CashApp to convince the victim to create and send him CSAM. He convinced a 12-year-old boy to produce CSAM and attempted to entice another minor boy to produce CSAM. Janes also admitted to purchasing hundreds of videos and images of CSAM through Telegram.
Janes pleaded guilty to one count of sexual exploitation of children, including using children to produce CSAM, and one count of receipt of child pornography. He is scheduled to be sentenced on Feb. 27, 2024, and faces a mandatory minimum of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI, Arlington County Police Department, and Galloway Township Police Department in New Jersey investigated the case.
Trial Attorney McKenzie Hightower of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Laura Withers for the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former City of Richmond Official and Wife Sentenced for FraudRead the Press Release
RICHMOND, Va. – A former senior manager at the City of Richmond Department of Public Works (DPW) and his wife were sentenced today to 27 months in prison and 8 months of home incarceration, respectively, for defrauding the City of Richmond.
According to court documents, Michael Evins, 67, previously served as the Deputy Director of Operations at DPW and managed up to 60 other employees. Evins used his position within DPW, a governmental entity responsible for providing engineering, technical, and administrative services to Richmond residents, to steer governmental contracts towards himself and his co-conspirators, including his wife, Samaria Evins, 52. From at least 2016 through 2021, Michael Evins and Samaria Evins took steps to defraud the DPW. First, Samaria Evins and other co-conspirators created and operated straw companies to bid on DPW work. Second, Michael Evins designated and approved DPW work to be performed by these straw companies using his position at DPW, circumventing Virginia law and City of Richmond rules against self-dealing by public employees. In some instances, the work to be performed was completely fabricated and no such work was ever needed. In other instances, the work was actually performed by DPW employees, not by contracted vendors. Sometimes, Samaria Evins and other co-conspirators subcontracted the work out for profit upon winning the DPW work. Third, where procurement amounts exceeded $5,000, a DPW approval threshold requiring that work be competitively bid, Michael Evins and his co-conspirators manufactured fictitious straw bids on behalf of competitor companies to engineer the preferred company winning the work. Finally, upon receiving DPW funds, Samaria Evins and other co-conspirators paid Michael Evins a portion of the proceeds.
As an example, in early 2019, DPW sought to have overgrown foliage at Parker Field, an area in Richmond, cleared in advance of Fourth of July celebrations that same year. Though Michael Evins knew mowing of the field was being performed by DPW employees, he nevertheless approved a requisition in the DPW purchase order system for a company owned by Samaria Evins to mow the entire area 16 times in four days, at a total cost of $4,800.
In all, Michael Evins, Samaria Evins, and their co-conspirators fraudulently caused DPW to disburse at least $603,701 in funds to companies owned by Samaria Evins and her co-conspirators, causing approximately $226,767 in loss to DPW.
A co-conspirator, Shaun Lindsey, a senior administrative technician at DPW, pleaded guilty to the same scheme on May 9 and will be sentenced on November 14, 2023.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and James Osuna, Inspector General, City of Richmond Office of the Inspector General, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
Assistant U.S. Attorney Avi Panth prosecuted the case.
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 Nos. 3:23-cr-81, 3:23-cr-87, and 3:23-cr-53.
Former Brighton High School teacher pleads guilty to possession of child pornographyRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Louis Carusone, 45, of Webster, NY, pleaded guilty to possession of child pornography involving prepubescent minors, before Chief U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison, a lifetime period of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that on October 10, 2022, Carusone, who was a high school physics teacher in the Brighton Central School District at the time, shared a video and images containing child pornography in an online peer-to-peer file-sharing network, which were downloaded by an undercover law enforcement officer. The officer then downloaded more files containing child pornography that were shared from Carusone’s IP address over the next few days.
On October 21, 2022, investigators executed a search warrant at Carusone’s Webster residence and seized multiple devices including a cell phone and computer. A forensic analysis recovered more than 2,000 images and videos of child pornography, some of which depicted children as young as five-years-old, and children being subjected to violence and sexual abuse. The forensic analysis further revealed that Carusone surreptitiously recorded and photographed children in public, to include minor female students in his Brighton classroom, and a water park, where he recorded children in bathing suits.
The plea is the result of an investigation by the Federal Bureau of Investigation Rochester Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for February 21, 2024, before Judge Wolford.
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Foreign National Pleads Guilty to Role in Immigration Fraud and Money Laundering SchemeRead the Press Release
ALEXANDRIA, Va. – An Israeli national pleaded guilty today to his role in a conspiracy to launder money and facilitate the illegal entry, harboring, and transporting of noncitizens in the United States for the purpose of their employment.
According to court documents, Shai Cohen, 39, admitted to organizing and working with others to recruit and facilitate the illegal entry of Israeli citizens into the United States under false pretenses. From approximately 2011 through December 2013, Cohen and his co-conspirators assisted noncitizens in fraudulently obtaining B-1/B-2 tourist/visitor visas by misrepresenting the true purpose of their travel to the United States, which was illegal employment. Cohen and his co-conspirators then assisted the noncitizens in traveling to the United States. Upon arrival, the noncitizens were employed at various kiosks owned and operated by Cohen and his co-conspirators in malls in Virginia and Maryland, despite entering the United States in a visa status that did not allow them to work. The noncitizens who engaged in illegal employment were primarily compensated for their work by under-the-table cash payments or the transfer of money to stored value payment cards, rather than through a legitimate payroll system. Cohen also provided for the noncitizens housing and transportation to and from work in the United States. Cohen and his co-conspirators also made foreign and domestic financial transactions in furtherance of and to promote the criminal scheme.
Cohen pleaded guilty to one count of conspiracy to commit offenses against the United States, which carries a maximum penalty of five years in prison, and one count of conspiracy to launder money, which carries a maximum penalty of 20 years in prison. He is scheduled to be sentenced on January 19, 2024. 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.
Cohen was arrested in Israel pursuant to a U.S. request for his extradition. In August, he was extradited to the Eastern District of Virginia.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Derek W. Gordon, Special Agent in Charge of the Homeland Security Investigations (HSI) Washington Field Office; and Troy W. Springer, Special Agent in Charge of the Department of Labor Office of Inspector General (DOL-OIG), National Capitol Region, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Assistant U.S. Attorney Raizza K. Ty and Trial Attorney Clayton O’Connor of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
The Justice Department’s Office of International Affairs provided significant assistance in securing Cohen’s arrest and extradition from Israel. The Justice Department thanks the government of Israel for making the arrest and extradition of Cohen possible.
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. 1:16-cr-114.
Foreign National Pleads Guilty to Role in Immigration Fraud and Money Laundering SchemeRead the Press Release
An Israeli national pleaded guilty today to his role in a conspiracy to launder money and facilitate the illegal entry, harboring, and transporting of noncitizens in the United States for the purpose of their employment.
According to court documents, Shai Cohen, 39, admitted to organizing and working with others to recruit and facilitate the illegal entry of Israeli citizens into the United States under false pretenses. From approximately 2011 through December 2013, Cohen and his co-conspirators assisted noncitizens in fraudulently obtaining B-1/B-2 tourist/visitor visas by misrepresenting the true purpose of their travel to the United States, which was illegal employment. Cohen and his co-conspirators then assisted the noncitizens in traveling to the United States. Upon arrival, the noncitizens were employed at various kiosks owned and operated by Cohen and his co-conspirators in malls in Virginia and Maryland, despite entering the United States in a visa status that did not allow them to work. The noncitizens who engaged in illegal employment were primarily compensated for their work by under-the-table cash payments or the transfer of money to stored value payment cards, rather than through a legitimate payroll system. Cohen also provided housing and transportation for the noncitizens to and from work in the United States. Cohen and his co-conspirators also used foreign and domestic bank accounts for financial transactions to pay for leased office space, apartments, airline tickets, vehicles, and other business costs in furtherance of and to promote the criminal scheme.
Cohen was arrested in Israel pursuant to a U.S. request for his extradition. In August, he was extradited to the Eastern District of Virginia.
Cohen pleaded guilty to one count of conspiracy to commit offenses against the United States, which carries a maximum penalty of five years in prison, and one count of conspiracy to launder money, which carries a maximum penalty of 20 years in prison. He is scheduled to be sentenced on Jan. 19, 2024. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, and Special Agent in Charge Troy W. Springer of the U.S. Department of Labor Office of Inspector General (DOL-OIG), National Capital Region made the announcement.
HSI Washington and DOL-OIG are investigating the case.
Trial Attorney Clayton O’Connor of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Raizza K. Ty for the Eastern District of Virginia are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance in securing Cohen’s arrest and extradition from Israel. The Justice Department thanks the government of Israel for making the arrest and extradition of Cohen possible.
Federal Jury Finds Three Defendants Guilty in $300 Million Nationwide Telemarketing Fraud Scheme Targeting the ElderlyRead the Press Release
MINNEAPOLIS – A federal jury has found three defendants guilty in a $300 million nationwide telemarketing fraud scheme that targeted elderly and vulnerable victims, announced U.S. Attorney Andrew M. Luger.
According to evidence presented at trial, Amondo Antoine Miller, 47, of Littleton, Colorado, Tashena Laverna Crump, 39, of Minneapolis, Minnesota, and Ballam Hazeakiah Dudley, 37, of Plymouth, Minnesota, knowingly conspired with at least 40 other defendants to carry out a telemarketing scheme that began in at least 2000 and victimized numerous individuals across the United States, many of whom are elderly and vulnerable.
“This was one of the largest elder fraud schemes in our nation, with over 150,000 elderly victims across the country,” said United States Attorney Andrew M. Luger. “We are pleased with the verdict. Combating elder fraud and abuse is one of the Justice Department’s top priorities, and we will continue to work closely with our law enforcement partners to combat systemic fraud of our most vulnerable citizens.”
Miller, Crump, and Dudley accomplished their scheme by calling victim-consumers who had one or more existing magazine subscriptions and offering to "renew" the existing magazine subscriptions, often at a reduced cost. In reality, the defendants tricked the victim-consumers into signing up for entirely new magazine subscriptions, which they did not want and often could not afford. Some victim-consumers were fraudulently billed by as many as ten companies at a time and received more than $1,000 in monthly magazine subscription charges. Over the course of the scheme, the co-conspirators defrauded more than $300 million from over 150,000 victims nationwide.
Following a month-long trial before Judge John R. Tunheim in U.S. District Court in Minneapolis, Dudley, Crump, and Miller, were found guilty of multiple counts of conspiracy to commit mail fraud, mail fraud, and wire fraud. Their sentencing hearings will be scheduled at a later date.
“The perpetrators of this reprehensible scam exhibited a ruthless level of deception and manipulation by targeting vulnerable victims,” said Special Agent in Charge Alvin M. Winston, Sr. “This verdict sends a strong message that those who seek to exploit vulnerable Americans will be brought to justice.”
“Yesterday’s verdict reaffirms how critical a role the U.S. Postal Inspection Service plays in protecting the American consumer from these types of fraudulent schemes and in ensuring that the nation’s U.S. Mail stream is not used by criminals to prey upon our citizens,” said Denver Division Inspector in Charge Bryan Musgrove. “The bold egregious nature in which these fraudsters victimized our elders and stripped them of their hard-earned money illustrates their callous disregard for human decency and overall greed. This investigation is a tremendous example of how the U.S. Postal Inspection Service and our FBI law enforcement partners can work side by side in an effort to bring these fraudsters to justice.”
The case was the first in Minnesota charged under the Senior Citizens Against Marketing Scams Act of 1994, which ensures enhanced penalties for persons convicted of mail or wire fraud in connection with the conduct of telemarketing. This case is the result of an investigation conducted by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Treasury Inspector General for Tax Administration (TIGTA).
Based on the evidence obtained in this investigation, authorities believe there may be additional victims of the alleged conduct. Report suspected fraudulent activity to [email protected].
Assistant U.S. Attorneys Harry M. Jacobs, Matthew S. Ebert, Garrett S. Fields, and Melinda A. Williams tried the case.
Federal Judge Sentences Hickory, N.C. Man to 14 Years in Prison for Trafficking Methamphetamine in Catawba and Caldwell CountiesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced Joseph William Patton, 34, of Hickory, N.C., to 168 months in prison followed by five years of supervised release today for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Alicia Jones, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office, Sheriff Alan C. Jones, of the Caldwell County Sheriff’s Office, and Chief Reed Baer of the Hickory Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Patton was operating as a major source of supply of methamphetamine in Catawba and Caldwell Counties. Between April and December 2022, law enforcement conducted a joint investigation into Patton’s drug trafficking activities, including arranging multiple controlled purchases of methamphetamine from the defendant. On December 12, 2022, law enforcement initiated a traffic stop of the vehicle Patton was a passenger in for an expired tag violation. During the traffic stop, law enforcement recovered from the vehicle a firearm, $5,448 in cash, and several baggies filled with methamphetamine, fentanyl, and Xanax pills. On the same day, law enforcement executed a search warrant at Patton’s residence, where they recovered 9 mm rifle and four magazines.
On July 20, 2023, Patton pleaded guilty to possession with intent to distribute methamphetamine.
Patton is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The ATF, the Catawba County Sheriff’s Office, the Caldwell County Sheriff’s Office, and the Hickory Police Department conducted the investigation.
Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the District Attorney’s Office and the U.S. Attorney’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Federal Grand Jury Indicts 2 for Allegedly Supplying Fentanyl and Other Narcotics Sold Through Darknet to Customers in All 50 StatesRead the Press Release
LOS ANGELES – A federal grand jury has indicted two men who allegedly supplied fentanyl-laced pills and methamphetamine for a drug trafficking organization that used the darknet and encrypted messaging applications to sell narcotics to thousands of customers in all 50 states across the country, the Justice Department announced today.
The two-count indictment returned October 25 charges Omar Navia, 38, of South Los Angeles, and Adan Ruiz, 27, of Garden Grove, with one count of conspiracy to distribute and to possess with the intent to distribute fentanyl and methamphetamine. Ruiz is also charged with one count of distribution of fentanyl.
Navia and Ruiz were arrested on November 2 and were arraigned that same day in United States District Court in Los Angeles. Both defendants pleaded not guilty, and a December 26 trial date was scheduled for them. Navia and Ruiz were ordered jailed without bond.
According to the indictment, Navia and Ruiz conspired with Rajiv Srinivasan, 38, of Houston, and Michael Ta, 25, of Westminster, who were indicted last year by a federal grand jury and pleaded guilty this year to similar charges. Srinivasan also pleaded guilty to distribution of fentanyl resulting in death. In their plea agreements, co-conspirators Srinivasan and Ta admitted that their drug trafficking activities caused the death of three individuals and that they sold fentanyl-laced pills to two others who died of drug overdoses soon thereafter. Srinivasan and Ta are awaiting sentencing next year before United States District Judge David O. Carter in Santa Ana.
As alleged in the indictment, co-conspirator Srinivasan advertised and accepted orders for counterfeit M30 oxycodone pills containing fentanyl and other narcotics through the vendor account “redlightlabs” on multiple darknet marketplaces. Navia and Ruiz allegedly communicated with co-conspirator Srinivasan regarding drug orders, including through encrypted messaging applications, such as “Session” and “Signal,” as well as direct Instagram messages. Navia and Ruiz then delivered controlled substances to Ta for mailing to customers who had ordered those drugs from Srinivasan, according to the indictment.
Navia and Ruiz allegedly were paid by Srinivasan for their roles as drug suppliers for the organization, including through cryptocurrency, currency which had been routed through cryptocurrency exchanges, and mobile payment applications including Apple Cash, CashApp, PayPal, Venmo, and Zelle.
The indictment alleges that co-conspirators Srinivasan and Ta maintained a shared electronic document that detailed approximately 3,800 drug transactions to approximately 1,400 unique customers in all 50 states across the country. That database documented sales between May 2022 and November 2022 totaling approximately 123,688 fentanyl pills, approximately 20 pounds of methamphetamine, and smaller amounts of fentanyl powder, black tar heroin and cocaine, according to the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The statutory maximum sentence for the conspiracy charge alleged in the indictment is life in federal prison. The statutory maximum sentence for distribution of fentanyl is 20 years in federal prison.
The FBI is investigating this matter. The investigation in this matter was conducted under the auspices of the FBI-led Joint Criminal Opioid Darknet Enforcement Team (JCODE), which targets darknet vendors by using sophisticated, high-tech techniques to identify drug traffickers who wrongly believe the dark web allows them to engage in criminal conduct with anonymity. Since its inception in 2018, JCODE investigations have resulted in the arrest of more than 300 darknet drug traffickers, as well as the seizure of more than $42 million in drug-tainted proceeds, over 800 kilograms of narcotics, and approximately 145 firearms.
Assistant United States Attorney Gregg E. Marmaro of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
Engineer Indicted for Bombing Energy Facilities in CaliforniaRead the Press Release
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.
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 indictment alleges that Karasev built explosive devices and used them to damage energy facilities, knocking out power to over 1,500 homes and businesses in the San Jose area,” said FBI Director Christopher Wray. “The FBI is laser focused on protecting the essential infrastructure that Americans rely on every day, and we and our partners like the San Jose Police Department will use every lawful means to hold anyone who targets that infrastructure accountable.”
“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 for the Northern District of California. “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.”
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 local authorities and remained in custody on related state charges prior to his transfer to federal custody for this case. He is charged 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 count three 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.
The FBI and the San Jose Police Department are investigating the case.
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.
Doctor and Her Granddaughter Indicted for Drug Conspiracy and Unlawful Distribution of OpioidsRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Janet Pettyjohn (77, Spring Hill) and Shelly Gallagher (34, Brooksville) with conspiracy to distribute drugs. The indictment also charges Pettyjohn with 21 substantive counts, and Gallagher with 9 substantive counts, of unlawful drug distribution. If convicted, Pettyjohn and Gallagher each face a maximum penalty of 20 years in federal prison on each count. The indictment notifies Pettyjohn that the United States intends to forfeit $34,132 in U.S. currency, which is alleged to be traceable to proceeds of her criminal conduct.
According to the indictment, Pettyjohn was an osteopathic physician licensed to practice medicine in the State of Florida with a Drug Enforcement Administration (DEA) registration number to prescribe controlled substances. In July 2020, Florida’s Board of Osteopathic Medicine (BOM) restricted Pettyjohn from prescribing opioids due to complaints about the manner in which she prescribed controlled substances. After the BOM’s Final Order and the prescribing restriction took effect, Pettyjohn continued to prescribe opioids in violation of the Final Order. The BOM later lifted the prescribing restriction in March 2021.
Gallagher is Pettyjohn’s granddaughter and did not hold a medical license. Between March 2021 and February 2023, Gallagher sponsored patients at Pettyjohn’s clinic and ordered controlled substances for herself and others from Pettyjohn. Pettyjohn knowingly and intentionally prescribed the controlled substances for Gallagher and others for no legitimate medical purpose in the usual course of professional practice, which Gallagher and others abused and diverted.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration—Tampa District Office, the Hernando County Sheriff’s Office, and by the Opioid Fraud Abuse and Detection Unit at the United States Attorney’s Office, which focuses on opioid-related fraud and abuse by medical and health care professionals who have contributed to the prescription opioid epidemic. It is being prosecuted by Assistant United States Attorney Greg Pizzo.
District Woman Guilty of Aggravated Assault While Armed and Related ChargesRead the Press Release
WASHINGTON – Following a four-day trial, on November 6, 2023, a Superior Court jury found Tiaquana Chandler, 42, of Washington, D.C., guilty of conspiracy to commit assault with a dangerous weapon, aggravated assault while armed, and possession of a firearm during a crime of violence, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
On or about March 28, 2023, the victim was in an apartment on 13th Place SE, Washington, D.C., when he got into a disagreement with Chandler. Chandler left the apartment, but returned a short time later with her son, Donnell E. Tucker, who was armed with a firearm. Together, they assaulted the victim, causing severe lacerations that required 14 staples and stiches to close. After Tucker allegedly pistol whipped the victim, he shot him in the leg, causing a fracture that required surgery. Tucker’s trial is scheduled for January 2024.
The Honorable Sean Staples ordered the defendant be released pending sentencing scheduled for January 12, 2024.
This case was investigated by the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorneys Saman Danai and Nathaniel Brower.
Disbarred Attorney Charged in COVID-19 Relief Loan Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment today charging DOUGLAS RAYMOND ARNTSEN with masterminding a fraudulent scheme to obtain more than $1.3 million in government-funded loans designed to provide relief to small businesses during the COVID-19 pandemic. ARNTSEN was arrested this morning and presented this afternoon before U.S. Magistrate Judge Sarah Netburn. The case is assigned to U.S. District Judge P. Kevin Castel.
U.S. Attorney Damian Williams said: “As alleged, Douglas Raymond Arntsen, a disbarred attorney, recruited multiple co-conspirators in a scheme to defraud the government out of more than $1 million by submitting fraudulent loan applications. These loans were funded by the American taxpayers and meant to help small businesses struggling from the effects of the COVID-19 pandemic. They were not meant to line people’s pockets for personal gain. Today’s arrest demonstrates this Office’s ongoing commitment to holding accountable those who illegally profited from a national emergency.”
FBI Assistant Director in Charge James Smith said: “Arntsen allegedly recruited people who were facing financial stress amidst an unprecedented global pandemic into a fraudulent scheme to illegally obtain $1.3 million in COVID-19 relief funds intended for small businesses. COVID-19 relief schemes abuse a government funded program that was designed to help small businesses who were struggling during a time of economic confusion. The FBI will bring to justice anyone who attempted to fraudulently exploit COVID-19 relief programs for their personal benefit.”
According to the allegations in the Indictment, which was unsealed today:[1]
Between in or about June 2020 through at least in or about August 2020, DOUGLAS RAYMOND ARNTSEN orchestrated a scheme to defraud the Small Business Administration (“SBA”) by submitting fraudulent loan applications through the Economic Injury Disaster Loan (“EIDL”) Program. In doing so, ARNTSEN recruited multiple co-conspirators. ARNTSEN promised potential co-conspirators a way out of their difficult financial circumstances. Certain of those co-conspirators trusted ARNTSEN because they thought he was an attorney. In reality, ARNTSEN had been disbarred.
ARNTSEN asked his co-conspirators to give him their personal information, including social security and driver’s license numbers, and then used this information to submit fraudulent loan applications to the EIDL program. The applications submitted by ARNTSEN falsely claimed that the co-conspirators owned businesses that had substantial revenue. Often, the co-conspirators named as owners of the businesses, in fact, had no legitimate connection to the businesses at all. After the loan applications were submitted, ARNTSEN directed his co-conspirators to lie to the SBA during the loan diligence process.
ARNTSEN also directed his co-conspirators to recruit additional participants to his fraudulent scheme. After one co-conspirator had obtained a fraudulent loan, ARNTSEN directed him, in sum and substance, to “[g]et me one more warm body.” The co-conspirator proceeded to give ARNTSEN the personal information of a relative, which was then used to obtain another fraudulent loan.
ARNTSEN and his co-conspirators enriched themselves through the fraud. In total, ARNTSEN and his co-conspirators obtained at least approximately $1.3 million in fraudulent loans and attempted to obtain hundreds of thousands of dollars of additional loans that the SBA declined to fund. After one fraudulent loan was approved by the SBA, ARNTSEN texted a co-conspirator, in sum and substance, “Need how you want your bank checks. Your chariot has arrived this morning.”
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ARNTSEN, 45, of Staten Island, New York, is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two 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 a judge.
Mr. Williams praised the outstanding investigative work of the FBI and additionally thanked the Suffolk County District Attorney’s Office for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Sowlati is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
DEA’s National Prescription Drug Take Back Day Removes Almost 600,000 Pounds of Unneeded Prescription Medications Across the CountryRead the Press Release
DETROIT – On Oct. 28, 2023, the community once again emptied their medicine cabinets to help dispose of old, unwanted, and expired medications. Nationwide, DEA and its law enforcement partners collected 599,897 pounds of unneeded medications at 4,675 collection sites nationwide.
Locally, the Detroit Field Division collected 62,771 pounds between 498 sites in Michigan, Ohio and northern Kentucky. For more than a decade, DEA’s National Prescription Take Back Day has removed almost 17.9 million pounds of unneeded medications from communities across the country.
“We are in a fight to save lives,” said U.S. Attorney for the Western District Mark Totten. “Drug Take Back Days are an important preventative measure in the United States’ efforts to combat drug abuse and the opioid crisis. I commend our law enforcement partners, community partners, residents, and everyone who supported DEA Take Back Day to keep unwanted medications from getting into the wrong hands.”
“Too often we see a friend or family member’s medicine cabinet unknowingly becoming the source of an accidental poisoning, an overdose, or abuse,” said DEA Detroit Special Agent in Charge Orville O. Greene. “A big thank you to our many partners who continue to show their commitment to ridding our communities of these unwanted medications.”
According to a report published by the Substance Abuse and Mental Health Services Administration, a majority of people who use prescription medication for a nonmedical purpose obtained that medication from a family member or friend. Removing unnecessary medications from the home can help prevent situations involving; not taking medication as intended or dosed; taking someone else’s prescription; and taking the medicine for euphoric effects rather than medicinal purposes.
DEA continues to expand opportunities to make safe disposal of medications more accessible nationwide. We encourage people to remove unnecessary medications from their home regularly and dispose of it at one of the nearly 17,000 permanent drug-drop boxes located in communities across the country. Those locations can be found here. Safe medication disposal receptacles along with DEA Take Back events provide families easy, no-cost opportunities to get rid of unnecessary medicines stored in the home.
Complete results for DEA’s fall National Prescription Drug Take Back Day are available at Take Back Day (dea.gov).
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Convicted Felon from Alexander City Sentenced to 130 Months in Federal Prison for Illegally Possessing FirearmsRead the Press Release
MONTGOMERY, ALABAMA – On November 7, 2023, a federal judge sentenced 42-year-old Jeremy Glenn Dye, a resident of Alexander City, Alabama, to 130 months in prison for possessing a firearm after being convicted of a felony offense and for possessing a stolen firearm, announced Acting United States Attorney Jonathan S. Ross. In addition, the judge ordered that Dye serve three years of supervised release following his prison term. Federal inmates are not eligible for parole.
According to court records and statements made in court, on October 6, 2021, law enforcement spotted Dye exiting a camper in Alexander City. Officers recognized Dye and knew that there was a warrant outstanding for his arrest. When officers approached Dye, he initially attempted to flee, but was apprehended after a short chase. Dye had a book bag with him at the time of the arrest. Inside the book bag was a handgun that had recently been reported stolen. Law enforcement obtained a search warrant for the camper and found three more stolen firearms, including two shotguns and a rifle. Dye is a convicted felon and is prohibited from possessing firearms. On July 27, 2023, Dye pleaded guilty to possession of a firearm by a convicted felon and possession of a stolen firearm.
This case was 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alexander City Police Department investigated this case, which Assistant United States Attorney Brandon W. Bates prosecuted.
Charlotte Woman in Charge of $1.9 Million Debt Collection Scheme Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Carissa Eugenia Brown, 35, of Charlotte, was sentenced to 54 months in prison for orchestrating a $1.9 million debt collection scheme. In addition to the prison term imposed, Brown was ordered to serve three years under court supervision after she is released from prison and to pay $1,708,920.60 as restitution.
Donald "Trey" Eakins, Special Agent in Charge of the Internal Review Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, from 2015 to July 2020, Brown executed a fraudulent debt collection scheme that defrauded hundreds of victims located in North Carolina and elsewhere in the United States. Court records show that, during the relevant time period, Brown had registered three companies in North Carolina, which she used in furtherance of the scheme: Accredited Recovery Solutions, LLC (a/k/a Accredited Recovery Network); Elite Credit Adjusters, LLC (a/k/a Elite Credit Network); and Martin Recovery Group, LLC (a/k/a Martin Recovery, P.C. and the Law Office of Martin and Associates).
According to court records, Brown operated her fraudulent debt collection scheme by contacting individuals who had been sued by various creditors for their outstanding debt and falsely represented that she was authorized to collect the debt on behalf of those creditors. Brown generally offered victims to “settle” the outstanding debt for a reduced amount, but only if the victims accepted the offer and paid the reduced amount in full, or began to make payments immediately to one of Brown’s companies. As court records show, Brown often mailed victims official-looking documents, including a purported settlement agreement. Victims then made a lump-sum payment, or several payments, to Brown and her companies, believing that doing so would resolve their debt and outstanding court case, only to later learn that Brown was not authorized to collect the debt and they still owed the full debt to the actual creditor.
To further induce victims to comply with the debt repayment demands, Brown sent correspondence to victims on letterhead that implied the communication was coming from a law firm, and left voicemails for victims falsely representing that she was calling from a law firm. In addition, Brown also employed threatening and harassing pressure tactics to fraudulently induce victims to pay her, including threatening to garnish victims’ wages, to seize victims’ bank accounts, or to file judgments in court if payment on the debt was not received.
As a result of the false and fraudulent representations and threatening and harassing tactics used by Brown, court documents show that hundreds of individuals throughout the United States were fraudulently induced to pay Brown and her companies more than $1.9 million. This resulted in victims being placed in the untenable position of either having to pay their debts twice, or face the financial consequences for failing to pay the true creditor.
Brown previously pleaded guilty to wire fraud and money laundering. She is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked IRS-CI and USPIS for handling the investigation.
Assistant United States Attorney Graham Billings of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Charlotte Man Is Sentenced for Possession of A Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
CHARLOTTE, N.C. – Benjamin James Hemphill, 24, of Charlotte, was sentenced today to 60 months in prison followed by three years of supervised release today for possession of a firearm in furtherance of a drug trafficking crime, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.
According to information in court documents and court proceedings, on August 4, 2021, CMPD officers arrested Hemphill after the defendant fled on foot from the scene of a car accident. Court documents show that officers at the scene of the accident searched Hemphill’s vehicle and recovered two firearms, over 3,500 pressed oxycodone pills that contained fentanyl, MDMA pills, and quantities of cocaine, cocaine base, and marijuana. Hemphill was arrested shortly thereafter.
Hemphill is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the DEA and CMPD for their investigation of the case.
Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the District Attorney’s Office and the U.S. Attorney’s Office.
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.
California Man Sentenced to 15 Years in Prison for Kidnapping Ex-Girlfriend and Transporting Her to IdahoRead the Press Release
BOISE – Emiliano Jaime Ramos, 41, of Lompoc, California, was sentenced to federal prison today for kidnapping his ex-girlfriend at gunpoint and then transporting her to Idaho where she was eventually rescued by police.
According to court records, on December 21, 2022, Ramos approached the victim in the parking lot of the clinic where she worked as a medical assistant in Pismo Beach, California. The victim and Ramos had previously dated, and following their breakup, the victim refused to meet with Ramos and blocked him from her social media accounts and had blocked his phone number. When the victim entered her vehicle to leave, Ramos opened the back passenger door and jumped into the seat behind her. He then reached around the driver’s seat and pressed a handgun into her right side, leading her to believe she was going to be shot. Ramos then ordered her to drive north, and she complied.
Ramos, who was in possession of a large knife in addition to the firearm, compelled the victim to drive from California to Nevada, Oregon, and eventually to Nampa, Idaho, where Ramos checked them into a hotel. Later, when Ramos was fully asleep, the victim grabbed her cell phone, which had been sitting on a nightstand, and turned it on. She quickly sent a text message to 911, before turning the phone off and placing it back on the nightstand. Once the 911 message was received, Nampa police officers were dispatched to the hotel, where they quickly worked to assemble a team of officers to conduct a rescue. During the morning of December 23, 2022, Ramos was arrested by police as he exited the hotel room. During the kidnapping, Ramos sexually assaulted the victim and told her that he intended to kill her in Idaho.
Chief U.S. District Judge David C. Nye sentenced Ramos to 15 years in a federal prison followed by five years of supervised release. Ramos pleaded guilty to the crime on August 17, 2023.
“The bravery of the victim in this case is powerful and I salute the law enforcement officers who rescued her and brought the defendant to justice,” said U.S. Attorney Hurwit. “I am also grateful to the victim specialists at the Canyon County Prosecutor’s Office and my office who have supported and will continue to support the courageous victim in this case.”
In addition to the Nampa Police Department, U.S. Attorney Hurwit credited the cooperative efforts of the Federal Bureau of Investigation, the Canyon County Prosecuting Attorney’s Office, Idaho State Police Forensic Services, the Ada County Sheriff’s Office Forensic Lab, Idaho Department of Correction, the Pismo Beach Police Department, and the Santa Maria Police Department, which led to the charges.
Brockport man pleads guilty to his role in multi-million dollar investment scamRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Halford W. Johnson, 60, of Brockport, NY, pleaded guilty to conspiracy to commit securities fraud before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of five years in prison.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that between September 2013, and April 2018, Johnson conspired with co-defendant Darin R. Pastor to defraud multiple investors through a publicly traded company named Creative App Solutions, Inc., whose stock was registered with the United States Securities and Exchange Commission. On September 6, 2013, Pastor paid approximately $1,774.10 to purchase approximately 3,548,200 shares of Creative App Solutions’ stock. Pastor became the CEO and changed the company’s name to Capstone Financial Group, Inc. Johnson was appointed Chief Financial Officer of Capstone.
From September 2013, through March 2017, approximately 95 investors purchased Capstone stock for $19,807,303. Johnson and Pastor fraudulently represented to investors and potential investors that Pastor had substantial personal wealth. For instance, they created a Wikipedia page for Pastor claiming that he had a net worth of hundreds of millions of dollars. They also mislead investors and potential investors to believe that their money would be used by Capstone to fund business deals that would generate substantial profits and increase the value of Capstone stock. These business deals included the building of a gas-to-liquid fuel production facility, the selling of gold to Hong Kong and Australian based companies, the selling of livestock, and multi-million-dollar investments by other companies in Capstone, all of which projected revenues of hundreds of millions of dollars.
Defendant Pastor used millions of dollars of investors’ money to pay his personal expenses and fund a lavish lifestyle for himself and his wife, including:
- repaying his personal debt to a securities firm;
- purchasing a house in Clarence, NY, for $1.5 million;
- purchasing a house in Florida for a relative;
- purchasing jewelry worth $294,640; and
- paying for his destination wedding in the Caribbean.
In December 2016, Capstone filed a Form 15 with the SEC terminating Capstone’s duty to file periodic and current reports with the SEC. Johnson and Pastor told investors that this meant Capstone was “going dark.” In April 2017, Capstone offered to buy back shares of Capstone stock from its investors and pay them at least four times the amount they initially paid for the stock. Johnson and Pastor knew that Capstone did not have sufficient money to pay the investors who had accepted the stock buyback offer. In order to further lull investors into believing that Capstone would fulfill its buyback agreements, Capstone made partial payments to investors totaling $6,728,500. The total loss to investors is $19,807,303.
Defendant Pastor was also charged but died in March 2023.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso, and the Federal bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for April 2, 2024, before Judge Vilardo.
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Active-Duty Air Force Member Agrees to Pay Treble Damages to Resolve False Claims Act Allegations Relating to Fraudulent Paycheck Protection Program LoanRead the Press Release
PENSACOLA, FLORIDA – Eglin Air Force Base active-duty member, Lazarus Wallace, has agreed to settle allegations that he violated the False Claims Act (“FCA”) by knowingly providing false information in support of a Paycheck Protection Program (“PPP”) loan. Wallace agreed to pay $63,327.54 in treble damages under the FCA. The settlement was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Serving our nation as a member of the military is a position of honor, deserving of high esteem,” said U.S. Attorney Coody. “The fraudulent acts of this individual are incompatible with such service. We remain committed to hold accountable all who abused this crisis-based loan system.”
The United States contends that in March 2021, Wallace prepared and submitted fraudulent documents and a false and fraudulent application to obtain a PPP loan totaling $20,833, in the name of Beaming Detailing LLC. The loan was forgiven and paid by the United States Small Business Administration (“SBA”), plus interest of $277.18, for a total of $21,109.18. The United States contends that Wallace fraudulently obtained the PPP loan based on multiple false and fraudulent statements, to include the date Beaming Detailing LLC was established, the amount of Beaming Detailing LLC’s gross income, and the purpose of the loan.
This matter was handled by Assistant U.S. Attorneys Mary Ann Couch and Marie Moyle from the United States Attorney’s Office for the Northern District of Florida, with assistance from the Air Force Office of Special Investigations, Defense Criminal Investigative Service, and the U.S. Small Business Administration.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
6 November 2023
Xavier Pelkey Sentenced to 15 Years for Conspiring to Provide Material Support to TerroristsRead the Press Release
BANGOR, Maine: A Waterville man was sentenced today in U.S. District Court in Bangor for conspiring to provide material support to terrorists.
U.S. District Judge Lance E. Walker sentenced Xavier Pelkey, 20, to 15 years in federal prison followed by 20 years of supervised release. Pelkey pleaded guilty on April 7, 2023.
According to court records, beginning in November 2021, Pelkey conspired with two minors, one located in Chicago and one in Canada, to conduct a mass shooting at a Shia mosque in the Chicago area. Pelkey and his coconspirators were subscribers to a radical form of Sunni Islam and supporters of the foreign terrorist organization the Islamic State, also known as ISIS. Pelkey planned to contribute firearms, ammunition and explosives to be used in the attack.
In February 2022, the FBI executed a search warrant at Pelkey’s Waterville residence and discovered three handmade explosive devices. Investigators observed a hand-painted version of the flag used by ISIS on the wall of Pelkey’s bedroom and recovered written statements intended to be released just prior to the planned attack claiming the attack in the name of ISIS. The FBI investigated the case.
“The threat of a mass casualty shooting is all too real and fresh for the people of Maine today, as is the case for far too many communities across our nation,” said Darcie N. McElwee, U.S. Attorney, District of Maine. “Mr. Pelkey bought into hate and rhetoric he found online, and it cost him his future. I commend the quick work of the FBI to stop this conspiracy before it was able to cause any death, fear or destruction.”
"Xavier Pelkey self-radicalized, pledged loyalty to ISIS, and plotted with two others to commit a mass shooting at a mosque in Illinois. Thankfully, the FBI’s Joint Terrorism Task Force was able to thwart these plans,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “This case highlights the very real threat posed by homegrown violent extremists who self-radicalize and are prone to attack with little to no warning. Rest assured, the FBI will use every investigative tool available to us to identify and disrupt terrorists like Mr. Pelkey in order to keep our communities safe.”
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Watertown Woman Sentenced for Her Role in Fentanyl ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Watertown, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on October 30, 2023.
Taylor Hoff, 29, was sentenced to four years and nine months in federal prison, followed by five years of supervised release. She was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Hoff was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in April of 2023. She pleaded guilty on July 31, 2023.
During her involvement in the conspiracy, Hoff obtained pills containing fentanyl from a co-conspirator on front and re-sold the pills to drug customers in northeastern South Dakota, to include on the Sisseton Wahpeton Oyate reservation.
This case was investigated by the Bureau of Indian Affairs, South Dakota Division of Criminal Investigation, and the Watertown Police Department. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Hoff was immediately remanded to the custody of the U.S. Marshals Service.
Walterboro Couple Sentenced to Federal Prison for Loan Fraud SchemeRead the Press Release
CHARLESTON, S.C. — A Walterboro couple, David Hiers, 45, and his wife Loretta Hiers 33, has been sentenced to three years and two years in federal prison, respectively, after pleading guilty to conspiracy to commit mail fraud and wire fraud.
Evidence presented to the Court showed that in May 2019, an individual named A.D. needed money to hire a lawyer for a jailed relative. The jailed relative advised A.D. to ask David Hiers for financial help. David Hiers told A.D. he would help and asked A.D. to provide his or her personal identifying information, including a picture of A.D.’s driver’s license and Social Security Account number. David Hiers also told A.D. that his or her credit would go bad. David Hiers advised A.D. that he would be able to repair A.D.’s credit in about six months because he had contacts to fix credit. David Hiers also said that he had done this many times with many people and for A.D. not to worry about it. Loretta Hiers informed A.D. that everything was going to be fine, and that A.D. was not going to be in trouble.
The Hiers proceeded to use A.D.’s personal identifying information (PII) to execute a fraudulent loan scheme whereby they obtained money from various federally insured banks and credit unions and other lending corporations by submitting fraudulent automobile, motorcycle, all-terrain vehicle, and farming equipment loan applications in the name of A.D., and they obtained approximately $393,029.06 in fraudulent loan proceeds.
To execute the fraud scheme, the Hiers utilized a used automobile dealership, namely Lowcountry Used Cars, LLC, located in Round O, S.C., that purported to be the seller of vehicles that were to be purchased with the fraudulent loans. The Hiers also set up bank accounts in the name of the dealership. The multiple false loan applications included fraudulent information about the details of the transactions, A.D.’s financial information, the purpose of the loans, and the collateral backing certain loans. The loans included A.D.’s PII even though A.D. was not actually purchasing vehicles or equipment, as well as false information concerning “ghost” vehicles that were purportedly going to be purchased with the loan proceeds, and fraudulent documents supporting the “ghost” automobile loans, including fictitious purchase orders. The Hiers used vehicle identification numbers (VIN) they obtained from the internet for the “ghost” automobile loans.
The Hiers deposited checks from the lenders, which were written to Lowcountry Used Cars, LLC and/or to A.D., into banks in the name of the dealership and into bank accounts that were otherwise under the control of the Hiers or A.D. The Hiers gave some of the fraudulently obtained loan proceeds to A.D., while keeping a portion of the fraudulent loan proceeds for themselves.
Around July 2019, A.D. confronted David Hiers and told him to stop doing what he was doing concerning A.D.’s credit. David Hiers then ended all contact with A.D.. Nevertheless, the Hiers continued to obtain fraudulent loans for motorcycles, all-terrain vehicles, and farming equipment from lenders in the name of A.D., without A.D.’s knowledge. On many occasions, Loretta Hiers posed as A.D. and used A.D.’s PII, including a forged driver’s license of A.D. Ultimately, the fraudulently obtained loans defaulted, causing losses to the lenders. The Hiers obtained approximately $393,029.06 in fraudulent loan proceeds via the scheme. The FBI seized and liquidated assets that were applied to the restitution in the case. A restitution amount of $252,369.31 remains outstanding.
United States District Judge Bruce Howe Hendricks sentenced David Hiers to 36 months imprisonment, to be followed by a five-year term of court-ordered supervision. Judge Hendricks sentenced Loretta Hiers to 24 months imprisonment, to be followed by a five-year term of court-ordered supervision. Judge Hendricks also ordered that David Hiers and Loretta Hiers each pay $252,369.31 in restitution, jointly and severally. There is no parole in the federal system.
This case was investigated by Federal Bureau of Investigation (FBI). Colleton County Sheriff’s Office assisted in executing search warrants and arrest warrants in this case. Assistant U.S. Attorney Dean H. Secor is prosecuting the case.
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U.S. Attorney Office to Present Senior Fraud Prevention Seminar in CarmiRead the Press Release
CARMI, Ill. – To educate seniors on the latest scams targeting them online and over the phone, the U.S. Attorney’s Office is partnering with the Carmi Public Library to host a fraud prevention seminar.
“Elder fraud is a major concern nationwide, as criminals target seniors who may be more susceptible to manipulation,” said U.S. Attorney Rachelle Aud Crowe. “To educate seniors on current fraud schemes, a prosecutor with experience charging these scammers will be at the Carmi Public Library to give an interactive and informational presentation on ways to avoid becoming a victim.”
The presentation highlights information on online scams, fraud schemes targeting seniors and details on cases prosecuted in the Southern District of Illinois. The event will start at 1 p.m. on Friday, Nov. 17 at the Carmi Public Library, located at 103 Slocumb St. in Carmi.
The event is free and open to the public.
Two Philadelphia Men Arrested for Distributing Fentanyl; Over 17,000 Bags of Fentanyl and Almost 200 Grams of Cocaine Base SeizedRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Talbert Hill, who is also known as “T,” and Samuel Bennett, who is also known as “Mellow,” both of Philadelphia, Pennsylvania, were arrested on Friday, November 3, 2023 in or near Burlington, Vermont. Both men have been charged by criminal complaint and appeared before United States Magistrate Judge Kevin J. Doyle this afternoon.
According to court records, Hill and Bennett are alleged to have distributed fentanyl in and around Burlington over the past few months. The investigation revealed that Hill and Bennett coordinated their activities by using the same cellular phone number to arrange drug sales. Law enforcement surveillance revealed a likely stash house used by Hill and Bennett on Walnut Street in Burlington. Investigators also determined that Bennett was staying at a hotel room in South Burlington. On November 3, 2023, law enforcement arrested Bennett from a car he was operating at the Charlotte, Vermont ferry landing. A search of the vehicle resulted in the seizure of over $10,000 cash from a suitcase in the trunk of Bennett’s car. Later on November 3, 2023, law enforcement attempted to arrest Hill in Burlington. Hill tried to flee, and discarded suspected fentanyl and cocaine base during his flight. Nevertheless, Hill had fentanyl on him when he was apprehended. At the same time as the arrests, law enforcement executed a federal search warrant on Walnut Street and at an area hotel. In total, agents seized over 17,000 bags of fentanyl (the equivalent of approximately 340 grams) and almost 200 grams of cocaine base.
The United States Attorney’s Office emphasizes that criminal complaints contain only allegations and both Hill and Bennett remain presumed innocent until and unless they are convicted of a crime. Both men face a maximum of 20 years of imprisonment on the charges they currently face.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Burlington Police Department and the Drug Enforcement Administration, and thanked the Vermont State Police for their assistance in apprehending Bennett.
The prosecutors are Assistant U.S. Attorneys Colin Owyang and Jonathan Ophardt. Hill is represented by Karen R. Shingler, Esq. Bennett is represented by the Office of the Federal Public Defender.
Traffic Stop in Tipton, Iowa, Leads to Federal Guilty PleaRead the Press Release
A woman who possessed over 50 grams of actual (pure) methamphetamine pled guilty today in federal court in Cedar Rapids.
Rebecca Ann Rose, age 36, from La Porte City, Iowa, was convicted of possessing at least 50 grams of actual (pure) methamphetamine with the intent to distribute it.
Evidence at a prior hearing demonstrated that on December 27, 2022, Rose was driving a vehicle in Tipton, Iowa, when law enforcement officers stopped her. Officers determined that she was intoxicated and arrested her. Officers searched her car and found thousands of dollars, over 50 grams of actual (pure) methamphetamine, and marijuana.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Rose remains in custody of the United States Marshal. Rose faces a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment without the possibility of parole, a $10,000,000 fine, and a term of supervised release of at least five years and up to life.
The case is being prosecuted by Assistant United States Attorney Devra T. Hake and was investigated by the Tipton Police Department, the Cedar County Sheriff’s Office, the Iowa State Patrol, and the Muscatine County Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-45.
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Three Individuals Charged in Drug Conspiracy Involving JuvenilesRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that on October 18, 2023, a federal grand jury returned a 14-count superseding indictment against Rockylane Lewis (who is also known as “Rizzo,” “Rocko,” or “Rockout,”), 33, of Philadelphia, Pennsylvania; Aisha Davy, 36, of Springfield, Massachusetts; and Holly Howard, 49, of Brattleboro, Vermont. The indictment charges Lewis, Davy, and Howard with conspiracy to distribute fentanyl and cocaine base. Lewis and Davy are also charged with conspiracy to employ and use persons under eighteen years of age to distribute fentanyl and cocaine base, and conspiracy to use and possess firearms during and in relation to a drug trafficking crime. Lewis is additionally charged with three counts of distributing controlled substances, five counts of employing and using persons under eighteen years of age to distribute controlled substances, one count of possession with the intent to distribute fentanyl, one count of using and possessing firearms during and in relation to drug trafficking crimes, and one count of possession of a firearm while knowing that he was a fugitive from justice. The indictment references three separate juveniles that Lewis is charged with involving in the distribution of controlled substances in Vermont. Howard is additionally charged with allowing her hotel room at the Rodeway Inn on Woodstock Avenue in Rutland, Vermont, to be used for the distribution of a controlled substance.
According to court records, on June 21, 2023, law enforcement executed a search warrant in Rutland, Vermont, during which Lewis was encountered and arrested. During the search of the apartment in which Lewis was located, law enforcement seized a black 9mm Ruger SR9c handgun, over 55 grams of bulk fentanyl, and a gram of cocaine base. Lewis was previously arraigned on three counts of distribution of controlled substances on July 6, 2023 before United States Magistrate Judge Kevin J. Doyle and was ordered detained pending trial. Lewis will be arraigned today on the additional charges in the October 18, 2023, indictment via video conference with United States Magistrate Judge Kevin J. Doyle.
Davy was arrested on October 24, 2023, in Springfield, Massachusetts. She was arraigned on November 1, 2023, before Magistrate Judge Doyle, and was released pursuant to conditions pending trial.
Howard was arrested on November 2, 2023, in Brattleboro, Vermont. She was arraigned on November 3, 2023, before Chief United States District Judge Geoffrey Crawford. Howard was released pursuant to conditions pending trial.
The indictment is an accusation only, and Lewis, Davy, and Howard are presumed innocent until and unless proven guilty. If convicted, Lewis and Davy face a maximum sentence of 40 years' imprisonment, while Howard faces a maximum sentence of 20 years' imprisonment if convicted. The actual sentences in the case will be determined by the court with reference to the advisory United States Sentencing Guidelines.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of Homeland Security Investigations and the Rutland City Police Department for their coordinated investigation. He also thanked the Vermont State Police Narcotics Investigation Unit, the Ludlow Police Department, the Windsor County Sheriff’s Office, the Rutland Office of Vermont Probation and Parole, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their vital assistance.
The prosecutors are Assistant United States Attorneys Jason Turner and Jonathan Ophardt. Lewis is represented by Jordana Levine, Esq., Davy is represented by Natasha Sen, Esq., and Howard is represented by Chandler Matson, Esq.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn .
Third Man Arrested for Cocaine and Firearms TraffickingRead the Press Release
BOSTON – A third man has been arrested in connection with a conspiracy to traffic cocaine and illegal firearms in and around the Boston metro area.
Alan Robinson, 25, of Littleton, was charged with one count of possession with intent to distribute controlled substances, firearms trafficking, and knowingly and intentionally possessing a firearm in furtherance of a drug trafficking crime. Robinson was arrested on Nov. 3, 2023 and, following an initial appearance in federal court in Boston, was detained pending a hearing set for Nov. 7, 2023.
According to the charging documents, Robinson engaged in a controlled purchase with a cooperating witness to sell them four firearms – which included two ghost guns, one of which was an assault rifle, knowing that the cooperating witness was a prohibited individual. Subsequently, a search warrant was executed at Robinson’s residence, where approximately 3.3 kilograms of powdered cocaine was recovered, as well as several firearms and accessories including a ghost gun assault rifle.
The charge possession with intent to distribute a controlled substance, provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of firearms trafficking provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000, The charge of knowingly and intentionally possessing a firearm in furtherance of a drug trafficking crime provides for a sentence of a minimum of five years and up to life in prison, up to five 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; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Suffolk County Sheriff’s 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 defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Texas Man Sentenced to over 9 Years in Prison for Conspiracy to Possess with Intent to Distribute CocaineRead the Press Release
Jackson, Mississippi – A Houston, Texas man was sentenced to 109 months in federal prison for conspiracy to possess with intent to distribute cocaine.
Juan Angel Gonzalez, 50, was sentenced in U.S. District Court on November 1, 2023.
According to court documents, in August 2019, Gonzalez conspired with others, including Kendrick Kenyon Davis, 45, of Amite, Louisiana, and Jimario Juvonca Holmes, 35, of Louisville, Mississippi, to distribute cocaine. During the investigation, agents learned that Gonzalez and Davis negotiated the delivery of kilogram quantities of cocaine, and that Davis had elicited the assistance of Holmes to pick up narcotics from Gonzalez in Houston, Texas and bring them back to Mississippi for distribution.
Ultimately, agents observed Davis meet with Holmes in Mississippi, then travel to Houston, where he met Gonzalez in a parking lot. Davis was later stopped in Beaumont, Texas for a traffic violation. Officers searched Davis’s vehicle, finding over 2 kilograms of cocaine, 172 pounds of marijuana, and a Taurus handgun with 10 rounds and one chambered.
Codefendants Davis and Holmes entered a plea of guilty and will be sentenced on December 14, 2023.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Acting Special Agent in Charge Eric DeLaune of Homeland Security Investigations made the announcement.
The case was investigated by Homeland Security Investigations in Jackson and Houston, Drug Enforcement Administration, Mississippi Attorney General’s Office, Kemper County Sheriff’s Office, Neshoba County Sheriff’s Office, Philadelphia Police Department, Mississippi Department of Wildlife, Fisheries and Parks, Mississippi National Guard Counterdrug Task Force, and the Beaumont (Texas) Police Department.
The case was prosecuted by Assistant United States Attorney Keesha Middleton.
The case is the result of an extensive investigation targeting illegal drug trafficking in Philadelphia, Neshoba County, Mississippi, and surrounding areas. The case 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.
Texas Man Sentenced to 15 Years in Prison for Advertising Child PornographyRead the Press Release
BOSTON – A Texas man was sentenced today in federal court in Boston for advertising child sexual abuse material on the dark web.
Neal Staton Grubert, 35, of Bertram, Texas, was sentenced by U.S. District Court Judge Nathanial M. Gorton to 15 years in prison followed by five years of supervised release. On July 12, 2023, Grubert pleaded guilty to one count of advertising child pornography.
In May 2020, Swedish law enforcement authorities determined that a Swedish citizen was producing images and videos of himself sexually abusing his three-year-old niece and distributing them on various dark websites. The investigation identified Grubert as an administrator of one of the websites. Following the Swedish individual’s arrest, a forensic examination of their phone revealed several images and videos depicting the sexual exploitation of children, including images and videos in which Grubert’s face could be seen watching the exploitation as it happened via webcam while logged onto this dark website. Specifically, Grubert was masturbating while directing the Swedish individual how to molest his niece. A subsequent undercover investigation located images and a video uploaded and published by Grubert in his role as an administrator on the dark website.
The other individual pleaded guilty to charges in Sweden and was sentenced to seven years in prison.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance in the investigation was provided by the Swedish Police Authority; Swedish National Operations Department; Swedish National IT Crime Centre; Swedish Prosecution Authority; Swedish National Public Prosecution Department; and Swedish National Unit against Organized Crime. Assistant U.S. Attorneys Luke A. Goldworm and Benjamin Tolkoff of the Major Crimes Unit prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.Tempe Man Arrested for Antisemitic Email Threat to Execute Local Rabbi and "every other JEW I can find"Read the Press Release
PHOENIX, Ariz. – Jeffrey Mindock, 50, of Tempe, was arrested Saturday morning on a federal complaint and arrest warrant by the Federal Bureau of Investigation for making a threat to execute a local Rabbi and “every other JEW [sic] I can find tonight at midnight of your Sabbath.”
The complaint alleges that Mindock sent an email on the morning of Friday November 3, 2023, to a Rabbi at a local synagogue in Scottsdale, asking the Rabbi to “try to convince” a judge in Utah to “drop the charges against” Mindock in a state district court case in Utah. The email stated: “If you do not use your influence to right this wrong I will execute you and every other JEW [sic] I can find tonight at midnight of your Sabbath.” The email went on: “If you wish to communicate with me further, I will only meet in person,” listed an address for the sender in Tempe, and was signed “Shalom, Viktor Sitkevicz.”
The complaint alleges that Mindock’s address was listed in motor vehicle records as the same Tempe address listed in the email. The complaint further alleges that Mindock’s threatening behavior extended to another prior email threat to “hang” a judge sent from email addresses containing “sitkevicz” or “mindock,” and another threat made during a previous court appearance in 2021 to “execute” others.
“Civic engagement and civil dialogue help bind us together as a Nation,” said United States Attorney Gary Restaino. “We have no tolerance for those who send threatening communications to Jewish faith leaders or to any other people in America. We will continue to exercise our prosecutorial discretion and deploy our resources to charge threats cases here in Arizona.”
“The FBI takes all threats of violence seriously,” said Chad Alvarado, acting special agent in charge of the FBI’s Phoenix field office. “The FBI and our law enforcement partners must take people who make threats at their word and intervene, because protecting human life is our absolute priority.”
A complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt. The United States will have up to 30 days from arrest to seek an indictment of Mindock.
The Federal Bureau of Investigation conducted the investigation in this case, with assistance from the Tempe Police Department and the Maricopa County Sheriff’s Office. The United States Attorney’s Office, District of Arizona, is handling the prosecution.
CASE NUMBER: 23-05579MJ
RELEASE NUMBER: 2023-171_Mindock# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Tama Woman to Federal Prison for Stealing from Disabled RelativeRead the Press Release
A woman who spent her disabled relative’s entire trust fund was sentenced on November 2, 2023, to more than two years in federal prison.
Nancy Lee Johnson, age 69, from Tama, Iowa, received the prison term after a May 1, 2023 guilty plea to one count of wire fraud. Information from Johnson’s plea agreement and sentencing showed that in November 2017, Johnson petitioned the Meskwaki Tribal Court to become the guardian and conservator of her disabled relative, L.J. In doing so, she swore that she would faithfully discharge the duties of a guardian and conservator, which included protecting, preserving, and prudently investing the estate of L.J. At the time, L.J. had a trust fund valued at more than $360,000. L.J. also received per capita pay from the Meskwaki tribe and Social Security benefits. The court recognized Johnson as L.J.’s guardian and conservator in February 2018.
As early as December 2017, she began to transfer money from L.J.’s trust fund to other accounts and by November 2018, the balance of L.J.’s trust fund was $0. In March 2018, Johnson activated a debit card for an account she opened in L.J.’s name. She had the only copy of the card. Johnson used that card to make unauthorized purchases, which included the purchases of two purebred dogs and multiple pieces of jewelry. During the time that she was his guardian and conservator, L.J.’s assets totaled at least $416,043.73. In August 2019, when the Meskwaki Tribal Court terminated Johnson’s guardianship and conservatorship, L.J.’s funds had been reduced to $1,871.38.
Johnson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Johnson was sentenced to 33 months’ imprisonment. She was ordered to make $387,213.40 in restitution to her relative. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Johnson was released on the bond previously set and is to surrender to the United States Marshal on November 27, 2023.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-0086.
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St. Louis Man Admits $150,000 Pandemic FraudRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri on Monday admitted fraudulently obtaining a $150,000 loan during the COVID-19 pandemic.
Demetrice Black, 53, pleaded guilty in U.S. District Court to one felony count of misuse of a Social Security number and one felony count of theft of government property. As part of his plea, he admitted applying for an Economic Injury Disaster Loan from the U.S. Small Business Administration on July 24, 2020 using a Social Security number that was not his own and a fraudulent Missouri driver’s license. Black, who was acting with another person, transferred some of the money to a separate checking account and withdrew some of the money in cash.
The EIDL loans were intended to help business owners who had been negatively affected by the coronavirus pandemic.
Black is scheduled to be sentenced February 8, 2024. The charge of misusing a Social Security number is punishable by up to five years in prison and the theft charge is punishable by up to 10 years in prison. Both also carry a potential fine of up to $250,000.
The case was investigated by the Social Security Administration Office of Inspector General. Assistant U.S. Attorney Diane Klocke is prosecuting the case.