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3 November 2023
Puerto Rican Man Sentenced to 70 Months Incarceration on Cocaine Possession ConvictionRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Carlos Velez-Lopez, 25, of Fajardo, Puerto Rico, was sentenced to 70 months incarceration by Chief District Judge Robert A. Molloy after pleading guilty on February 21, 2023, to possession with intent to distribute cocaine.
According to court documents, on September 24, 2020, while conducting surveillance, Drug Enforcement Administration agents observed Emanuel Campbell Camacho approach a vehicle and remove a large, heavily weighted duffle bag from the vehicle. Camacho entered a waiting vehicle with the duffle bag and the vehicle took Camacho to the Windward Passage Hotel. After arriving at Windward Passage, Camacho carried the large duffel bag to the second floor of the hotel where Velez-Lopez was waiting. Agents approached both men and recovered 30 kilograms of cocaine from the duffle bag. Cell phones records later confirmed that Velez-Lopez and Camacho arranged the cocaine delivery. On June 21, 2023, Judge Molloy sentenced Camacho to 87 months incarceration for his role in the drug conspiracy.
This case was investigated by Drug Enforcement Administration, Homeland Security Investigations and Customs and Border Protection and prosecuted by Assistant United States Attorney Kyle Payne. The investigation 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.
Ohio man sentenced to 14 years for solicitation of child pornographyRead the Press Release
WHEELING, WEST VIRGINIA – An Ohio man has been sentenced to 14 years in prison for solicitation of child pornography.
Steven Wolford, age 26, of Cadiz, Ohio, was ordered to serve 168 months in federal prison after admitting to enticing and receiving sexually explicit images from a 9-year-old girl in Wetzel County, West Virginia. Wolford communicated with the victim through Facebook Messenger and officers discovered child pornography on two cellular phones that were seized from him during the execution of a search warrant.
“Thanks to the excellent work of law enforcement, Mr. Wolford won’t be able to victimize anyone for the next fourteen years,” said United States Attorney William Ihlenfeld. “Predators like Wolford walk among us, and the U.S. Attorney’s Office will continue to do everything in its power to protect children in our community.”
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government.
The case was investigated by the Wetzel County Sheriff’s Department and the Cadiz Police Department.
U.S. District Judge John Preston Bailey presided.
Ohio Man Sentenced to Prison for Fentanyl and Gun CrimesRead the Press Release
BECKLEY, W.Va. – La Percy Demond Allen, also known as “Pete,” 44, of Toledo, Ohio, was sentenced today to eight years and six months in prison, to be followed by three years of supervised release, for the distribution of fentanyl and for being a felon in possession of a firearm.
According to court documents and statements made in court, on July 27, 2021, Allen sold approximately 26 grams of fentanyl to a confidential informant in Beckley. Allen admitted to that transaction and to selling approximately 3.4 additional grams of fentanyl and approximately 53 grams of heroin to the informant during other transactions in Beckley between July 9, 2021, and August 4, 2021.
On August 10, 2021, law enforcement officers executed a search warrant at a Beckley residence and found approximately 53 grams of fentanyl, a loaded Hi-Point Model 995 9mm rifle, and $6,730. Allen admitted to possessing the firearm, cash and fentanyl. Allen further admitted that intended to distribute the fentanyl and that the money was from the distribution of heroin.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Allen knew he was prohibited from possessing a firearm because of felony convictions for heroin trafficking and evidence tampering in the Scioto County, Ohio, Court of Common Pleas on December 10, 2013, and for trafficking and possessing cocaine base, also known as “crack,” in Lawrence County, Ohio, Common Please Court on December 29, 2008.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Beckley Raleigh County Drug and Violent Crime Unit, the Raleigh County Sheriff’s Department, the West Virginia State Police, and the Beckley Police Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant U.S. Attorney Courtney L. Finney prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-154 and 5:22-cr-2.
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New York man sentenced to 35 years in prison for surveilling and shooting a man in MiamiRead the Press Release
MIAMI – On Nov. 1, a New York man was sentenced to 35 years in federal prison, followed by five years of supervised release, for surveilling and later shooting a victim from point-blank range.
Julian Jimenez, 27, of New York, flew down from New York to Miami to kill the victim. Once Jimenez arrived in Miami, he surveilled his victim at the victim’s home and business. After four days of surveillance, Jimenez entered his victim’s residential community wearing a mask, gloves and holding a firearm. While the victim was in his vehicle about to pull into his garage, Jimenez ran up behind him and started shooting. Jimenez fired eight rounds at the victim. The victim survived but was hit three times and needed surgery to remove the projectiles left inside his body.
The sentence comes after Jimenez’s guilty plea in August. A restitution hearing is scheduled on Jan. 30, 2024.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, announced the sentence imposed by U.S. District Judge Roy K. Altman.
FBI Miami’s Violent Crimes and Fugitive Task Force investigated the case. Assistant U.S. Attorneys Abbie D. Waxman, Michael E. Gilfarb and Katherine W. Guthrie prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20389.
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New Orleans Man Pleads Guilty to Violating Federal Gun Control Act and Possessing Car Stolen from Norfolk Southern RailyardRead the Press Release
NEW ORLEANS, LOUISIANA – DESMOND TAYLOR, age 27, a resident of New Orleans, Louisiana, pleaded guilty on November 2, 2023 before U.S. District Judge Jay C. Zainey to being a felon in possession of a firearm in violation Title 18, United States Code, Sections 922(g)(1) and 924(a)(8), and possession of goods stolen from an interstate shipment, in violation of Title 18, United States Code, Section 659.
According to court documents, on March 27, 2023, a 2023 Ford Explorer Timberline was stolen from the Norfolk Southern Automotive Distribution Facility. TAYLOR was captured on surveillance video occupying the Explorer on multiple occasions over the next week. On April 3, 2023, TAYLOR arrived at a residence in the Seventh Ward in the stolen Explorer with several other individuals. While inside the stolen vehicle, TAYLOR possessed an American Tactical Model MilSport, .223 caliber firearm. Prior to possessing the firearm, TAYLOR was convicted of drug and weapons felonies in Orleans Parish Criminal District Court, which disqualifies him from possessing a firearm.
TAYLOR faces a maximum term of imprisonment of 15 years on the felon in possession count and 10 years on the possession of stolen goods count. Each count also carries up to a $250,000 fine, up to 3 years of supervised release, and a $100 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Orleans Man Pleads Guilty to Drug Conspiracy, Firearm Conspiracy, and Hobbs Act RobberyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on November 2, 2023, JAMAL CLAY, a/k/a “Mal,” a/k/a “Young Mal,” a/k/a “O,” a/k/a “YM,” pled guilty to various violations of the Federal Controlled Substances Act, the Federal Gun Control Act, and Hobbs Act robbery. CLAY specifically pled guilty to Counts 1, 2, 3 and 4 of the superseding bill of information pending against him before U.S. District Judge Jane Triche Milazzo.
CLAY pled guilty to Count 1 of the superseding bill of information, in which he was charged with participating in a conspiracy to distribute and to possess with the intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, and a quantity of marijuana, in violation of Title 21, United States Code, Section 84l(a)(l), (b)(l )(B), (b)(1)(D), and 846. CLAY faces a minimum sentence of five years and a maximum sentence of 40 years imprisonment, a fine of up to $5,000,000.00, at least 4 years supervised release, and a $100.00 mandatory special assessment fee.
CLAY pled guilty to Count 2 of the superseding bill of information, in which he was charged with participating in a conspiracy to use firearms in furtherance of a drug trafficking crime and crime of violence, in violation of Title 18, United States Code, Section 924(o). CLAY faces a maximum sentence of 20 years in prison, a fine of up to $250,000.00, 3 years supervised release, and a $100.00 mandatory special assessment fee for this count.
CLAY pled guilty to Count 3 of the superseding bill of information, in which he was charged with participating in a Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951. CLAY faces a maximum sentence of 20 years in prison, a fine of up to $250,000.00, 3 years of supervised release, and a $100.00 mandatory special assessment fee for this count.
CLAY also pled guilty to Count 4 of the superseding bill of information, in which he was charged with possessing and brandishing a firearm in furtherance of and during and in relation to a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(ii) and 2 (aiding and abetting). CLAY faces a mandatory minimum sentence of seven years to life in prison, a fine of up to $250,000.00, up to five years of supervised release, and a $100.00 mandatory special assessment fee. This sentence must be imposed consecutively to any other sentence.
According to public documents, in 2019, the Federal Bureau of Investigation investigated a group for committing various violent crimes and illegal drug trafficking, primarily in New Orleans East and the Ninth Ward section of New Orleans. Thereafter, CLAY, along with nine others, were indicted, for conspiring to possess firearms, traffic drugs and commit armed robberies of drug dealers. CLAY’s plea documents detail his role as a drug trafficker who often possessed firearms, as well as his participation in the armed robbery of a drug dealer’s home and the residents within it on September 25, 2019, in Violet, Louisiana.
CLAY’s sentencing is scheduled for February 21, 2024, at 9:30 a.m. before U.S. District Judge Jane Triche Milazzo.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, and the St. Bernard Sheriff’s Office. Assistant United States Attorneys Maurice Landrieu of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crime Unit, are in charge of the prosecution.
Navy Sailor Indicted for Attempting to Entice and Meet A Minor Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Michael Buck Brockway (39, Jacksonville) with using the internet and his cellphone from July 17 through July 28, 2023, to attempt to entice a minor child to engage in sexual activity. If convicted, Brockway faces a minimum mandatory penalty of 10 years, up to life, in federal prison, and a potential life term of supervised release. Brockway was arrested on July 28, 2023, in Jacksonville, on related state charges. He was arraigned in federal court on November 2, 2023, and ordered detained pending trial.
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 Jacksonville Sheriff’s Office, the Naval Criminal Investigative Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Muskogee Resident Sentenced for Kidnapping and RobberyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ashton Marie Clark, age 31, of Muskogee, Oklahoma, was sentenced to 120 months in prison for one count of Kidnapping in Indian Country and 120 months in prison for one count of Robbery in Indian Country. The sentences will be served concurrently.
The charges arose from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Muskogee County Sheriff’s Office, and the Muskogee Police Department.
On September 14, 2022, Clark pleaded guilty to one count of Kidnapping in Indian Country and one count of Robbery in Indian Country. According to investigators, on September 11, 2021, Clark and her co-defendant kidnapped and assaulted one victim, and robbed another victim, stealing a car and personal items at gunpoint.
The crimes occurred in Muskogee County, within the boundaries of the Muscogee Creek Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Clark will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Erin Cornell and Casey Richmond represented the United States.
Mother and Son Indicted for Violating Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that on October 26, 2023, JERAD M. BARRETT, a/k/a “Mackenzie,” “Mack,” “Big Mack,” age 40, and JENNIE L. JAMES, age 66, both of New Orleans, , were charged in a recently unsealed four-count indictment for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, a quantity of amphetamine, and 100 kilograms or more of marijuana in violation of Title 21, United States Code, Sections 846, 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), and 841(b)(1)(C), possession with intent to distribute 500 grams or more of methamphetamine, a quantity of amphetamine, and 100 kilograms or more of marijuana in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), and 841(b)(1)(C), possession with intent to distribute 100 kilograms or more of marijuana in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), and maintaining a drug-involved premises in violation of Title 21, United States Code, Section 856(a)(1).
The Jefferson Parish Sheriff’s Office and the Federal Bureau of Investigation began investigating BARRETT after receiving information regarding his narcotics distribution activity. As a result of this investigation, agents recovered over 500 grams of methamphetamine, a quantity of amphetamine pills, and approximately 940 kilograms of marijuana stored in plastic bins and barrels from within his residence and multiple storage units. Agents also uncovered communications between JAMES and BARRETT related to the distribution, packaging, and relocation of narcotics within the Eastern District of Louisiana.
If convicted of conspiracy to distribute and possess with intent to controlled substances, BARRETT and JAMES each face a minimum of ten (10) years up to life imprisonment, a fine of up to $10,000,000.00, and a minimum of five (5) years of supervised release following any term of imprisonment. If convicted of possession with intent to distribute 500 grams or more of methamphetamine, amphetamine, and 100 kilograms or more of marijuana, BARRETT faces a minimum of ten (10) years up to life imprisonment, a fine of up to $10,000,000.00, and a minimum of five (5) years of supervised release following any term of imprisonment. If convicted of possession with intent to distribute 100 kilograms or more of marijuana, BARRETT faces a minimum of five (5) years up to forty (40) years imprisonment, a fine of up to $5,000,000.00, and a minimum of four (4) years of supervised release following any term of imprisonment. If convicted of maintaining a drug-involved premises, BARRETT and JAMES each face up to twenty (20) years imprisonment, a fine of up to $500,000, and up to three (3) years of supervised release. As to each of the charged counts, BARRETT and JAMES, individually, face payment of a $100.00 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation, the Louisiana State Police, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department. It is being prosecuted by Assistant U.S. Attorney Lynn E. Schiffman of the Narcotics Unit.
Mexican Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that Javier De Leon Marin, 32, of Monterrey, Mexico, was sentenced on November 3, 2023, in federal court in Omaha, Nebraska, for his involvement in a methamphetamine conspiracy. Chief United States District Judge Robert F. Rossiter Jr. sentenced Barajas to 108 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 2-year term of supervised release. De Leon Marin also agreed to the forfeiture of $169,283 that was seized as part of the investigation.
On April 11, 2022, an undercover (UC) Special Agent with the Drug Enforcement Administration contacted a Mexican-based source of supply about purchasing four ounces of meth that could be delivered to the UC in Omaha. Arrangements were made, and later that day Gerson Ortega-Corado arrived and exchanged $1,000 for four ounces of meth.
On May 18, 2022, the UC again contacted the Mexican-based source of supply and made arrangements for a one-pound delivery of meth. Later that day, the UC met with De Leon Marin and exchanged $3,700 for 418 grams of pure meth. Following the controlled buy, De Leon Marin was followed around to various locations. One of the locations that De Leon Marin visited was an apartment in the area of 10th and Bancroft in Omaha. He was also followed to several storage units.
On June 16, 2022, the DEA executed search warrants at the 10th and Bancroft apartment and the storage units. At the 10th and Bancroft location, 26.3 kilograms of pure meth and $160,000 were seized. At the storage units, agents seized $31,562, $2,303, and $6,980.
Oretga-Corado was sentenced on August 15, 2023, to 168 months’ imprisonment.
This case was investigated by the DEA, FBI, and the Omaha Police Department.
Maryland Tax Preparer Pleads Guilty to Filing False ReturnsRead the Press Release
A Maryland tax return preparer pleaded guilty today to preparing false tax returns.
According to court documents and statements made in court, from at least 2017 through 2022, Adis Smith, of Chula Vista, California, and formerly of Baltimore, prepared and filed false income tax returns for his clients in order to fraudulently lower the taxes they owed or to generate refunds from the IRS to which they were not entitled. Smith typically reported fictitious or inflated business losses and itemized deductions. To conceal his fraud from the IRS, Smith prepared and filed each client’s tax return as a “ghost preparer,” reporting it had been self-prepared by the client rather than by Smith. In total, Smith prepared over 1,000 false tax returns and caused a tax loss to the IRS of approximately $4,729,311.
Smith is scheduled to be sentenced on Feb. 2. He and faces a maximum penalty of three years in prison as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Matthew Cofer and Sarah Ranney of the Tax Division and Assistant U.S. Attorney Sean Delaney for the District of Maryland are prosecuting the case.
Mandeville Bookkeeper Charged with Access Device FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on November 2, 2023 DEBORAH C. KLOOR, age 59, of Mandeville, was indicted for access device fraud in relation to her embezzlement from a Folsom-based company, where she worked as a bookkeeper. KLOOR is also alleged to have stolen funds from the business’s owner, for whom KLOOR worked as a personal assistant.
According to the indictment, KLOOR is alleged to have used the company’s credit cards as well as the owner’s bank and Amazon accounts without authorization, for her own personal benefit. The indictment alleges that, from approximately January 2015 through December 2019, KLOOR misappropriated $446,324.04 from the company and from the owner without their knowledge or permission.
If convicted, KLOOR could receive up to ten years in prison, up to a $250,000.00 fine or the greater of twice the gross gain or twice the gross loss, and up to three years of supervised release after imprisonment. She would also pay a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, New Orleans Field Office, in investigating this matter. Assistant U.S. Attorney Matthew R. Payne, Senior Litigation Counsel, is in charge of the prosecution.
Man Involved in Drug Conspiracy that Killed Three in St. Louis Sentenced to 35 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Friday sentenced a man to 35 years in prison for his role in drug robberies that cost the lives of three people in St. Louis in 2021.
Demorion Little conspired with his co-defendant, Antaveon Bernard Le'Vell Kent, to steal and sell marijuana. The pair used Facebook to pick their targets and then arranged to buy marijuana from their victims.
On Feb. 25, 2021, Little contacted Rocoby Rodgers via Facebook Messenger and asked about purchasing quarter-pound packages of marijuana. They arranged to meet in the 2300 block of Blair Avenue in St. Louis. Police found Rodgers dead in his car. That night, Little advertised on Facebook that he had marijuana for sale.
Kent and Little arranged to meet Kortlin Williams and Johnnie Jones on March 16, 2021 in the 1100 block of Montgomery Street. When the victims arrived, Kent and Little fired into their vehicle, killing Williams and Jones and injuring a third occupant.
Judge Pitlyk called Little’s conduct, ending the lives of three young men and injuring a fourth, “beyond heinous.”
“This case seems unbelievable – murder for marijuana,” said Assistant Special Agent in Charge Colin Dickey, lead of Drug Enforcement Administration investigations in Eastern Missouri. "Unfortunately, DEA has learned that the type of drug or the quantity doesn’t matter when it comes to drug dealers’ motivations. They will use any means as a way to make money or protect their illegal drug operations, including threatening or using violence.”
Little, 24, pleaded guilty in August to one felony marijuana distribution conspiracy count and one count of aiding and abetting the discharge of one or more firearms in furtherance of the marijuana trafficking conspiracy.
Kent pleaded guilty to conspiracy to distribute marijuana, attempting to possess with the intent to distribute marijuana and two charges of possession and discharge of a firearm in furtherance of a drug trafficking crime that resulted in the fatal shootings of Williams and Jones.
In February, Judge Pitlyk sentenced Kent, 23, of Florissant, to 26 years in prison.
The case was investigated by the Drug Enforcement Administration and the St. Louis Metropolitan Police.
Leader of $70M Cryptocurrency and Binary Options Fraud Schemes Extradited to the U.S.Read the Press Release
A Serbian man has been extradited to the United States, where he faces charges in two separate federal indictments in the Northern District of Texas and Eastern District of New York for his alleged participation in coordinated cryptocurrency and binary options schemes.
On Feb. 3, pursuant to a request for provisional arrest followed by a request for extradition, Georgian authorities arrested Kristijan Krstic, 48, in Batumi, Georgia. The U.S. Marshals Service (USMS) completed the removal of Krstic on Oct. 30 from Georgia to the Northern District of Texas.
Krstic arrived in the Northern District of Texas made his initial appearance today in the U.S. District Court for the Northern District of Texas, where he will first face charges before being transferred to face additional charges in the Eastern District of New York.
“This extradition is the result of continued coordination between the Justice Department and our Georgian law enforcement partners in the fight against transnational organized crime,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “We are committed to protecting the people of this nation by investigating and prosecuting individuals involved in cryptocurrency fraud.”
Northern District of Texas
In March 2020, a federal grand jury in the Northern District of Texas indicted Krstic for his role in defrauding investors worldwide out of more than $70 million through fraudulent cryptocurrency and binary options investment platforms. Krstic and more than a dozen other alleged fraudsters were also indicted on charges of conspiracy to commit wire fraud and conspiracy to commit money laundering in the superseding indictment in July 2020.
“The work on this case exemplifies the whole of the Justice Department to bring cyber-criminals – including those who use cryptocurrency and other purported cyber investment platforms to victimize the citizens of the United States – to justice,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “The U.S. Attorney’s Office for the Northern District of Texas will work hand-in-hand with our law enforcement partners to ensure that cyber-criminals are held accountable regardless of their location.”
According to court documents, the defendants allegedly helped create and market more than 20 fraudulent cryptocurrency and binary options investment platforms, including Start Options, Trinity Mining, Hedger Tech, BTC Mining Factory, Bitcoin Trading World, Dragon Mining, BTC Trader Online, Crypto Trading World, Go Solar Mining, BTC Falcon, Perpetual Energy, Perfect-Options, Options Rider, Option Giants, Banking Options, Aeon Options, Bancde Options, Instant Options, Fast Options, and Elite Options.
“The FBI remains committed to pursuing subjects across international boundaries who are increasingly utilizing sophisticated virtual asset schemes to defraud investors,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Victims were told their investment in Start Options and B2G would return significant wealth, but many were defrauded and harmed as a result. The FBI thanks our national and international partners for their efforts throughout the investigation to help bring justice for the victims.”
“This extradition occurred because of international cooperation and the FBI’s persistence to hold this individual accountable for defrauding thousands of innocent victims. Some victims lost their entire savings to this scheme and have not been able to financially recover,” said Special Agent in Charge Chad Yarbrough of the FBI Dallas Field Office. “We would like to thank our international partners for assisting us with the arrest and extradition of Mr. Krstic. He will now finally face charges for his actions in the United States.”
Krstic is charged in the Northern District of Texas with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering in an alleged scheme to create, promote, market, and organize fraudulent online investment platforms. If convicted, he faces a maximum penalty of 20 years in prison for each count.
The FBI Dallas Field Office is investigating the case.
Assistant U.S. Attorneys Michelle Winters and Nicole Dana for the Northern District of Texas are prosecuting the case. Assistant U.S. Attorneys Dimitri Rocha and John de la Garza for the Northern District of Texas assisted with forfeiture matters.
Eastern District of New York
In February 2021, a federal grand jury in the Eastern District of New York also indicted Krstic for his role in a cryptocurrency scheme in which he solicited U.S. investors using two fraudulent online investment platforms. According to court documents, Krstic was the founder of two digital-asset investment platforms, Start Options and B2G, and also served as the chief financial officer of Start Options. As alleged, between approximately 2017 and 2018, Krstic and others fraudulently induced U.S.-based investors to purchase securities in the form of investment contracts in Start Options and B2G. To perpetuate the fraud, Krstic allegedly used the alias “Felix Logan” and created the Twitter handle “@felixlogan_cfo” to communicate with investors in Start Options and B2G.
The indictment alleges that Start Options purported to be an online investment platform that provided cryptocurrency mining and digital-asset trading services, including trading in cryptocurrencies, commodities, stocks, and indices. Start Options also allegedly claimed that it was “the largest Bitcoin exchange in euro volume and liquidity” and that it was “consistently rated the best and most secure Bitcoin exchange by independent news media.” The indictment further alleges that B2G purported to be an “ecosystem” that would allow users to trade B2G tokens, as well as digital and fiat currencies, “on a secure, comprehensive platform.” Krstic and others allegedly represented that once investors opened a B2G account, a deposit of B2G “open[ed] a door to all the curtains inside Aladdin’s cave. Dollars buy B2G; B2G tokens can be exchanged back into dollars, or for Euros, or for other national fiat currencies. B2G holdings can be traded for original bitcoin or other altcoins.”
“Kristijan Krstic used the hype and mystery of cryptocurrency to separate unwitting investors from their money,” said Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office. “Krstic founded two online investment platforms which allowed him to steal $7 million in investor funds before closing up shop. Fleeing the country did not stop IRS-CI and our law enforcement partners from continuing our pursuit of justice, and today’s extraction demonstrates that no criminal is out of our reach.”
According to the indictment, however, the money that investors in Start Options and B2G sent was never invested and instead, was laundered internationally to a Philippines-based financial account and digital-currency wallet and diverted to John DeMarr, a U.S.-based promoter of the fraud. Subsequently, DeMarr allegedly transferred to Krstic approximately $7 million in investor funds from B2G and Start Options, and then Krstic stopped responding to all communications and absconded with those investors’ funds. A press release issued by Start Options claimed that the company had been sold to Russian venture capitalists.
Krstic is charged in the Eastern District of New York with one count of conspiracy to commit securities fraud, one count of securities fraud, one count of conspiracy to commit wire fraud, and one count of conspiracy to commit money laundering. If convicted, he faces a maximum penalty of 20 years in prison.
On Jan. 31, DeMarr, 55, of Santa Ana, California, the former Director of North American Operations for Start Options and B2G, was sentenced to five years in prison for his role in the scheme.
U.S. Attorney Breon Peace for the Eastern District of New York joined in the announcement.
IRS-CI and the FBI Los Angeles Field Office are investigating the case.
The government of Georgia, including the Prosecution Service of Georgia, Ministry of Justice of Georgia, and the Ministry of Interior of Georgia, provided significant assistance in the extradition of Krstic to the United States. Republika Srpska Police (RS-MUP) assisted as well. The Justice Department’s Office of International Affairs also provided substantial assistance in securing the arrest and extradition of Krstic. USMS transported Krstic from Georgia to the United States.
Trial Attorney Tian Huang of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Kaitlin Farrell, Hiral Mehta, and David Pitluck for Eastern District of New York are prosecuting the case, with assistance on forfeiture matters from Assistant U.S. Attorney Laura Mantell for the Eastern District of New York.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Las Vegas Real Estate Developer Sentenced to One Year and a Day in Prison for Tax EvasionRead the Press Release
A Nevada man was sentenced today to one year and one day in prison for evading payment of his federal income taxes.
Scott H. Lawrence, of Las Vegas, pleaded guilty to tax evasion on July 26, 2022.
According to court documents and statements made in court, from approximately 2009 through 2019, Lawrence owned and operated Turn Two Inc. (Turn Two), a Nevada real estate company. In March 2010, the IRS levied Lawrence’s personal bank account in an attempt to satisfy an outstanding tax debt. After learning of the IRS levy, Lawrence began taking steps to thwart IRS collection efforts by, among other things, cashing large portions of his wife’s paycheck to keep the funds out of a bank account the IRS could levy. Beginning in 2011, Lawrence began depositing his wife’s entire paycheck and other earnings into a corporate bank account not subject to levy, held by Turn Two and used that account to pay most of his family’s personal living expenses.
Lawrence then directed his wife to create a new interior design business, D Lawrence Hospitality LLC (DLH), and to open a business bank account for DLH. Lawrence funneled much of his and his wife’s personal income through DLH to impede the IRS’s ability to collect the couple’s unpaid taxes. For years, Lawrence concealed the existence and personal use of DLH’s bank account from the IRS.
Lawrence also caused his attorney to send a materially misleading letter to the IRS and to pay his taxes using an intentionally overdrawn bank account.
In all, as a result of his evasive conduct, Lawrence prevented the IRS from collecting more than $1.9 million in federal income taxes.
In addition to the term of imprisonment, U.S. District Judge Anne R. Traum for the District of Nevada ordered Lawrence to serve two years of supervised release and to pay approximately $1,905,325 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Patrick Burns and Boris Bourget of the Tax Division prosecuted the case.
Las Vegas Real Estate Developer Sentenced to Prison for Tax EvasionRead the Press Release
LAS VEGAS – A Nevada man was sentenced today to 12 months and one day in prison for evading payment of his federal income taxes. Scott H. Lawrence, of Las Vegas, pleaded guilty to tax evasion on July 26, 2022.
According to court documents and statements made in court, from approximately 2009 through 2019, Lawrence owned and operated Turn Two Inc., a Nevada real estate company. In March 2010, the IRS levied Lawrence’s personal bank account in an attempt to satisfy an outstanding tax debt. After learning of the IRS levy, Lawrence began taking steps to thwart IRS collection efforts by, among other things, cashing large portions of his wife’s paycheck to keep the funds out of a bank account the IRS could levy. Beginning in 2011, Lawrence began depositing his wife’s entire paycheck and other earnings into a corporate bank account not subject to levy, held by Turn Two and used that account to pay most of his family’s personal living expenses.
Lawrence then directed his wife to create a new interior design business, D Lawrence Hospitality LLC (“DLH”), and to open a business bank account for DLH. Lawrence funneled much of his and his wife’s personal income through DLH to impede the IRS’s ability to collect the couple’s unpaid taxes. For years, Lawrence concealed the existence and personal use of DLH’s bank account from the IRS.
Lawrence also caused his attorney to send a materially misleading letter to the IRS and to pay his taxes using an intentionally overdrawn bank account.
In all, as a result of his evasive conduct, Lawrence prevented the IRS from collecting more than $1.9 million in federal income taxes.
In addition to the term of imprisonment, U.S. District Judge Anne R. Traum ordered Lawrence to serve two years of supervised release and to pay approximately $1,905,325 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Patrick Burns and Boris Bourget of the Tax Division prosecuted the case.
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Kingston Resident Sentenced for Failure to Register as A Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darrell Edward Lynch, Jr., age 53, of Kingston, Oklahoma, was sentenced to 30 months in prison for failing to register as a sex offender.
The charges arose from investigations by the United States Marshals Service and the Marshall County Sheriff’s Office.
On November 7, 2022, Lynch pleaded guilty to one count of failing to register as a sex offender. According to U.S. Marshals, between April 18 and May 3, 2022, Lynch, a convicted sex offender, changed his residence within the Eastern District of Oklahoma and knowingly failed to update his registration in violation of the law. Lynch, who received a felony conviction in 1998 for Aggravated Sexual Assault of a Child in the State of Texas, is required to register or update his registration as a sex offender every ninety days.
The Honorable Rodney W. Sippel, Senior U.S. District Judge in the United States District Court for the Eastern District of Missouri, sitting by assignment, presided over the hearings in Muskogee, Oklahoma. Lynch will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Special Assistant United States Attorney Genevieve Ozark represented the United States.
Justice Department Announces New Nationwide Public Safety CommitmentsRead the Press Release
New Haven – On November 2, the Justice Department announced several new commitments as part of its Comprehensive Strategy for Reducing Violent Crime. Instituted by Attorney General Merrick B. Garland in May 2021, the strategy focuses on harnessing federal resources, intelligence, and expertise as a force-multiplier with state, local, and Tribal law enforcement.
Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta highlighted the more than $334 million in critical grant funding to law enforcement agencies and stakeholders awarded today by the Office of Community Oriented Policing Services (COPS Office).The COPS grants announced today include funding to help law enforcement agencies hire over 1,730 new law enforcement officers across the country while also providing critical funding to support school safety and continue to advance community policing nationwide.
“Law enforcement officers across the country are showing up every day to protect their communities in the face of unprecedented challenges,” said Attorney General Merrick B. Garland. “These grants, which support the hiring of more than 1700 new officers and make critical investments in school safety and crisis intervention efforts, will help provide local law enforcement agencies with the resources they need to keep their communities safe, support officers, and build public trust.”
Through this funding, U.S. Attorney’s Office for the District of Connecticut is pleased to announce that the Justice Department’s COPS Office has awarded more than $8.8 million to Connecticut and several of its municipalities to combat violent crime and maintain public safety. Included in the grant awards are:
- COPS Hiring Program (CHP) Awards of $3,161,790 to the Hartford Police Department to hire 10 police officers, and $500,000 to the North Branford Police Department to hire four police officers;
- An Anti-Heroin Task Force (AHTF) Program Award of $3,882,182 to Connecticut’s Department of Emergency Services and Public Protection;
- A COPS Office School Violence Prevention Program (SVPP) Award of $500,000 to the New Hartford school system;
- And Community Policing Development (CPD) Program Awards of $153,806 to Colchester, $160,000 to Deep River, $190,000 to Fairfield, $126,660 to Norwalk, $28,615 to Vernon, and $174,342 to the Connecticut State Police.
“We are pleased that communities across Connecticut will benefit from these substantial Justice Department grant awards,” said U.S. Attorney Vanessa Roberts Avery. “These funds will help fight violent crime, curb the illegal distribution of dangerous narcotics, improve policing, and keep our children safe.”
The Department has also named the five new cities to join the more than 50 jurisdictions currently part of the Office of Justice Program’s (OJP) Bureau of Justice Assistance (BJA) National Public Safety Partnership (PSP), which has a proven track record of helping partner sites reduce crime, improve homicide clearance rates, and enhance the quality of life for community members. The 2024 PSP sites are: Knoxville, Tennessee; Minneapolis, Minnesota; Raleigh, North Carolina; San Antonio, Texas; and Vallejo, California.
Lastly, the Deputy Attorney General and Associate Attorney General announced that this December 11-13, in Indianapolis, the Justice Department’s will bring together 1,500 local and federal partners from across the country, including representatives from the more than 50 PSP jurisdictions and from Project Safe Neighborhoods for a Violent Crime Reduction Summit, to be hosted by OJP BJA.
Complete lists of all program award recipients, including funding amounts, can be found here.
Jury Convicts East St. Louis Man on Federal Meth ChargeRead the Press Release
EAST ST. LOUIS, Ill. – A federal jury returned a guilty verdict for an East St. Louis man accused of distributing ounce quantities of meth in St. Clair County.
Aaron Wallace, 42, was charged with one count of meth distribution in November 2021.
“DEA works aggressively to remove meth dealers from southern Illinois,” said U.S. Attorney Rachelle Aud Crowe. “Thanks to their diligent efforts, we’re working to eradicate drug trafficking from our communities.”
According to court documents and evidence presented during trial, Drug Enforcement Administration agents opened an investigation into Wallace in September 2020, after learning he was dealing large quantities of crystal meth in St. Clair County.
During DEA’s investigation, a confidential source purchased four ounces of crystal meth from Wallace in East St. Louis.
Wallace’s sentencing is scheduled for Feb. 6, 2024, at the U.S. District courthouse in East St. Louis.
DEA led the investigation with support from the U.S. Marshals Service. Assistant U.S. Attorneys Daniel Kapsak and Daniel Carraway are prosecuting the case.
Inmate Pleads Guilty to Possessing Weapon at FCI BeckleyRead the Press Release
BECKLEY, W.Va. – Dana Stewart, 30, an inmate at the Federal Correctional Institution (FCI) Beckley, pleaded guilty today to possession of a weapon by an inmate at a federal prison.
According to court documents and statements made in court, on September 30, 2022, Stewart struck another inmate with a handcrafted weapon, a lock attached to a sock. FCI Beckley staff witnessed the incident and recovered the weapon afterward. Stewart admitted to possessing a prohibited item that was designed and intended to be used as a weapon.
Stewart is scheduled to be sentenced on February 22, 2024, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Timothy D. Boggess is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-55.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Nov. 2 was:
Nicholas David Decker, 33, of Billings, on charges of conspiracy to possess with intent to distribute and distribution of controlled substances and possession with intent to distribute methamphetamine. If convicted of the most serious crime, Decker faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Decker was detained pending further proceedings. The FBI conducted the investigation. PACER case reference. 23-114.
Armondo Anthony Ronquillo, 37, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Ronquillo faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Ronquillo was detained pending further proceedings. The Billings Police Department, Yellowstone County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 23-64.
Appearing on Nov. 1 was:
Billy Joe Chavez, 40, of Billings, on charges of prohibited person in possession of firearm and ammunition. If convicted of the most serious crime, Chavez faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Chavez was detained pending further proceedings. The Drug Enforcement Administration conducted the investigation. PACER case reference. 23-19.
Appearing on Oct. 26 was:
Joshua David Heafner, 39, of Billings, on charges of felon in possession of a firearm. If convicted of the most serious crime, Hafner faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Heafner was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department conducted the investigation. PACER case reference. 23-109.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Oct. 31 was:
Nicholas Geoffrey Combs, 28, of Portland, Oregon, on charges of distribution child pornography, receipt of child pornography and transportation of child pornography. If convicted of the most serious crime, Combs faces a mandatory minimum of five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Combs was detained pending further proceedings. The Missoula Police Department investigated the case. PACER case reference. 23-44.
Appearing on Oct. 30 was:
Efren Zanabriga Zuniga, 35, of Oaxaca, Mexico, on charges of production of child pornography, transportation of child pornography and receipt of child pornography. If convicted of the most serious crime, Zuniga faces a mandatory minimum of 15 years to 30 years in prison, a $250,000 fine and five years to life of supervised release. Zuniga was detained pending further proceedings. Homeland Security Investigations and the Missoula Police Department investigated the case. PACER case reference. 23-46.
Caleb Gerard Diamond, 24, of Missoula, on charges of felon in possession of a firearm. If convicted of the most serious crime, Diamond faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Diamond was detained pending further proceedings. The Missoula Police Department, Montana Probation and Parole and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 23-41.
Appearing on Oct. 27 was:
Bryan Michael Balog, 30, of Missoula, on receipt of child pornography and possession of child pornography. If convicted of the most serious crime, Balog faces a mandatory minimum of five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Balog was detained pending further proceedings. The Missoula Police Department and Internet Crimes Against Children Task Force investigated the case. PACER case reference. 23-45.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston for an initial appearance on a criminal complaint on Oct. 31 was:
Frank Espinoza, 32, of Venezuela, on charges of improper entry by alien. If convicted of the most serious crime, Espinoza faces a maximum of six months in prison, a $100,000 fine and one year of supervised release. Espinoza was detained pending further proceedings. The Border Patrol investigated the case. PACER case reference. 23-102.
Fatima Brito, 29, of Venezuela, on charges of improper entry by alien. If convicted of the most serious crime, Brito faces a maximum of six months in prison, a $100,000 fine and one year of supervised release. Brito was detained pending further proceedings. The Border Patrol investigated the case. PACER case reference. 23-103.
Diana Ruiz-Gomez, 26, of Mexico, on charges of improper entry by alien. If convicted of the most serious crime, Ruiz-Gomez faces a maximum of six months in prison, a $100,000 fine and one year of supervised release. Ruiz-Gomez was detained pending further proceedings. The Border Patrol investigated the case. PACER case reference. 23-104.
Emilio Fernando Dominguez-Martinez, 24, of Mexico, on charges of improper entry by alien. If convicted of the most serious crime, Dominguez-Martinez faces a maximum of six months in prison, a $100,000 fine and one year of supervised release. Dominguez-Martinez was detained pending further proceedings. The Border Patrol investigated the case. PACER case reference. 23-105.
Fredy Hernandez-Morales, 28, of Mexico, on charges of improper entry by alien. If convicted of the most serious crime, Hernandez-Morales faces a maximum of six months in prison, a $100,000 fine and one year of supervised release. Hernandez-Morales was detained pending further proceedings. The Border Patrol investigated the case. PACER case reference. 23-106.
Viridiana Macias-Espinosa, 38, of Mexico, on charges of improper entry by alien. If convicted of the most serious crime, Macias-Espinosa faces a maximum of six months in prison, a $100,000 fine and one year of supervised release. Macias-Espinosa was detained pending further proceedings. The Border Patrol investigated the case. PACER case reference. 23-107.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Individual Convicted of Firearms Trafficking with Los 27 Prison GangRead the Press Release
SAN JUAN – A federal jury convicted Héctor Kalie Figueroa-Marbelt for helping a member of Los 27 prison gang with engaging in the business of selling firearms without a license.
According to court documents and evidence presented at trial, Los 27 gang was a criminal organization which operated from within the prisons of Puerto Rico using illegally introduced cellphones. To make money from prison, Los 27 members engaged in murder, drug trafficking, extortion, and firearms trafficking. Los 27 members also engaged in firearms trafficking to supply firearms to the members of the criminal organization who would leave prison. Figueroa-Marbelt helped Los 27 with this crime.
The evidence at trial showed that Figueroa-Marbelt was the “outside person” for a Los 27 member considered to be the point of contact for firearms within Los 27—Victor Elias-Boza, aka “Grilla.” From prison, Elias-Boza brokered the sale of a firearm, and Figueroa-Marbelt delivered the firearm. In December 2019, Figueroa-Marbelt delivered a firearm, which Elias-Boza agreed to sell to another member of Los 27. That day, Figueroa-Marbelt showed that he was ready and able to engage in firearms trafficking, offering to sell more firearms. Figueroa-Marbelt had numerous firearms for sale at his disposal.
In September 2021, the FBI arrested Figueroa-Marbelt and seized eight firearms, over 2,000 rounds of ammunition, and money in Figueroa-Marbelt’s possession. The FBI also found that Figueroa-Marbelt had sufficient firearm parts that arrived in the mail, accessories, and tools to manufacture additional firearms. In sum, the evidenced showed that Figueroa-Marbelt was ready and able to sell firearms for profit with Elias-Boza.
Figueroa-Marbelt is now facing a sentence of up to five years in prison, a fine of up to $250,000, and a supervised release term of up to three years.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico and Joseph González, Special Agent in Charge of the FBI made the announcement.
Assistant U.S. Attorney Victor O. Acevedo-Hernández was in charge of prosecuting the case.
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Indiana U.S. Attorney’s Offices Announce $6 Million in Department of Justice Funding for Hoosier Public Safety ProgramsRead the Press Release
HAMMOND- Today, the U.S. Department of Justice announced several new commitments as part of its Comprehensive Strategy for Reducing Violent Crime. Instituted by Attorney General Merrick B. Garland in May 2021, the strategy focuses on harnessing federal resources, intelligence, and expertise as a force-multiplier with state and local law enforcement.
Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta highlighted the more than $334 million in critical grant funding to law enforcement agencies and stakeholders nationwide, awarded today by the Office of Community Oriented Policing Services (COPS Office).
The COPS grants announced today include funding to help law enforcement agencies hire over 1,730 new law enforcement officers across the country while also providing critical funding to support school safety and continue to advance community policing nationwide.
Through this funding, U.S. Attorney’s Offices for both the Northern and Southern Districts of Indiana are pleased to announce that the Department’s COPS Office awarded a total of $6,689,417.00 to combat violent crime and maintain public safety in the state. Specific recipients and amounts are as follow:
Award
Recipient
Amount
COPS Anti-Methamphetamine Program
Indiana State Police
$2,000,000
COPS Office School Violence Prevention Program
City of Hobart
$500,000
COPS Office School Violence Prevention Program COPS Office School Violence Prevention Program
Lake Station Community Schools
$375,000
COPS Office School Violence Prevention Program
Logansport Community Schools
$478,843
COPS Office School Violence Prevention Program
New Castle Community Schools
$358,132
COPS Office School Violence Prevention Program
Valparaiso Community Schools
$390,000
COPS Office School Violence Prevention Program
Vincennes Police Department
$337,422
COPS Hiring Program
City of Frankfort
$250,000
COPS Hiring Program
Porter County
$125,000
COPS Hiring Program
Town of Roseland
$125,000
COPS Hiring Program
Tippecanoe County
$1,250,000
COPS Hiring Program
Vincennes Police Department
$500,0000
Lastly, the Deputy Attorney General and Associate Attorney General announced that the Justice Department will host a Violent Crime Reduction Summit December 11-13, in Indianapolis. The summit, organized by the Department’s Office of Justice Programs and Bureau of Justice Assistance will bring together 1,500 local and federal partners from across the country, including community and law enforcement representatives from Project Safe Neighborhoods and the more than 50 jurisdictions that have participated in the National Public Safety Partnership.
“We are excited to announce this important Justice Department funding to help make our communities safer, and to host the Department’s 2023 Violent Crime Reduction Summit right here in Indianapolis,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “I welcome the many dedicated community and law enforcement leaders from across the country to our wonderful city as we work together to reduce violent crime. The work done at this summit will help make our communities safer by sharing interventions and strategies to prevent violence and hold violent criminals accountable.”
“These grants will help departments, in my District and throughout the State, address a myriad of issues that undermine public safety, such as violence in schools, illicit methamphetamine activities, and a shortage of law enforcement officers.” Said Clifford D. Johnson, U.S. Attorney for the Northern District of Indiana. “These grants also exhibit yet another way the Department of Justice provides support to our public safety partners.”
“Law enforcement officers across the country are showing up every day to protect their communities in the face of unprecedented challenges,” said U.S. Attorney General Merrick B. Garland. “These grants, which support the hiring of more than 1,700 new officers and make critical investments in school safety and crisis intervention efforts, will help provide local law enforcement agencies with the resources they need to keep their communities safe, support officers, and build public trust.”
Complete lists of all program award recipients, including funding amounts, can be found at cops.doj.gov/grants.
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Indiana U.S. Attorney’s Offices Announce $6 Million in Department of Justice Funding for Hoosier Public Safety ProgramsRead the Press Release
INDIANAPOLIS- Today, the U.S. Department of Justice announced several new commitments as part of its Comprehensive Strategy for Reducing Violent Crime. Instituted by Attorney General Merrick B. Garland in May 2021, the strategy focuses on harnessing federal resources, intelligence, and expertise as a force-multiplier with state and local law enforcement.
Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta highlighted the more than $334 million in critical grant funding to law enforcement agencies and stakeholders nationwide, awarded today by the Office of Community Oriented Policing Services (COPS Office).
The COPS grants announced today include funding to help law enforcement agencies hire over 1,730 new law enforcement officers across the country while also providing critical funding to support school safety and continue to advance community policing nationwide.
Through this funding, U.S. Attorney’s Offices for both the Northern and Southern Districts of Indiana are pleased to announce that the Department’s COPS Office awarded a total of $6,689,417.00 to combat violent crime and maintain public safety in the state. Specific recipients and amounts are as follow:
Award
Recipient
Amount
COPS Anti-Methamphetamine Program
Indiana State Police
$2,000,000
COPS Office School Violence Prevention Program
City of Hobart
$500,000
COPS Office School Violence Prevention Program COPS Office School Violence Prevention Program
Lake Station Community Schools
$375,000
COPS Office School Violence Prevention Program
Logansport Community Schools
$478,843
COPS Office School Violence Prevention Program
New Castle Community Schools
$358,132
COPS Office School Violence Prevention Program
Valparaiso Community Schools
$390,000
COPS Office School Violence Prevention Program
Vincennes Police Department
$337,422
COPS Hiring Program
City of Frankfort
$250,000
COPS Hiring Program
Porter County
$125,000
COPS Hiring Program
Town of Roseland
$125,000
COPS Hiring Program
Tippecanoe County
$1,250,000
COPS Hiring Program
Vincennes Police Department
$500,0000
Lastly, the Deputy Attorney General and Associate Attorney General announced that the Justice Department will host a Violent Crime Reduction Summit December 11-13, in Indianapolis. The summit, organized by the Department’s Office of Justice Programs and Bureau of Justice Assistance will bring together 1,500 local and federal partners from across the country, including community and law enforcement representatives from Project Safe Neighborhoods and the more than 50 jurisdictions that have participated in the National Public Safety Partnership.
“We are excited to announce this important Justice Department funding to help make our communities safer, and to host the Department’s 2023 Violent Crime Reduction Summit right here in Indianapolis,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “I welcome the many dedicated community and law enforcement leaders from across the country to our wonderful city as we work together to reduce violent crime. The work done at this summit will help make our communities safer by sharing interventions and strategies to prevent violence and hold violent criminals accountable.”
“These grants will help departments, in my District and throughout the State, address a myriad of issues that undermine public safety, such as violence in schools, illicit methamphetamine activities, and a shortage of law enforcement officers.” Said Clifford D. Johnson, U.S. Attorney for the Northern District of Indiana. “These grants also exhibit yet another way the Department of Justice provides support to our public safety partners.”
“Law enforcement officers across the country are showing up every day to protect their communities in the face of unprecedented challenges,” said U.S. Attorney General Merrick B. Garland. “These grants, which support the hiring of more than 1,700 new officers and make critical investments in school safety and crisis intervention efforts, will help provide local law enforcement agencies with the resources they need to keep their communities safe, support officers, and build public trust.”
Complete lists of all program award recipients, including funding amounts, can be found at cops.doj.gov/grants.
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Indiana Man Sentenced to 25-Months Imprisonment on Federal Identity Theft, Fraud ChargesRead the Press Release
EAST ST. LOUIS, Ill. – A U.S. District judge sentenced a man from Fort Wayne, Indiana, to 25 months imprisonment after he admitted to participating in an identity theft and fraudulent check scheme.
Jamaine D. Brooks, 46, pled guilty to possession of five or more identification documents, possession of 15 or more unauthorized access devices and aggravated identity theft in a U.S. District courtroom in July. Following imprisonment, he will serve three years of supervised release.
“Financial exploitation and identity theft crimes are serious offenses with lasting effects on victims,” said U.S. Attorney Rachelle Aud Crowe. “Thankfully, our law enforcement partners worked swiftly to apprehend this offender, and I commend this collaborative effort to pursue justice.”
According to court documents, Brooks stole identities to commit financial fraud and buy merchandise using his victims’ means from various Walmart locations and other retail stores.
He was arrested by police after he traveled to southern Illinois with 23 Indiana identification cards and driver’s licenses, 39 stolen credit and debit cards, nine Social Security cards, four checkbooks in one individual’s name and equipment to alter checks in March 2021.
“The U.S. Secret Service and our law enforcement partners remain committed to identifying, investigating, and pursuing those who attempt to enrich themselves through fraudulent means,” said Stephen Webster, the Resident Agent in Charge of the U.S. Secret Service. “We are proud of our partnerships with the federal, state, and local agencies who work collectively to hold these individuals accountable for their actions.”
At the time of his arrest, Brooks had already used his victim’s identity and financial means to purchase more than $5,000 in retail goods, most recently at a Walmart in Collinsville, Illinois. In addition to the federal prison sentence, Brooks was ordered to pay $5,154.75 in restitution back to this specific victim.
The identification cards, credit and debit cards, and social security cards belonged to at least 40 separate victims.
“We are very proud of the great work done by our officers that led to this arrest,” said Chief Steve Evans of the Collinsville Police Department. “More importantly, these kind of results are only possible due to the strong relationship and collaboration between local law enforcement and federal law enforcement.”
Chelci Johnson, 33, also of Fort Wayne, Indiana, was a named co-defendant also charged in the indictment. An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The Collinsville Police Department and the U.S. Secret Service contributed to the investigation. Assistant U.S. Attorney Peter T. Reed prosecuted the case.
Honduran Nationals Sentenced in Multi-Million Dollar Wire and Tax Fraud SchemeRead the Press Release
Jacksonville, Florida – Chief United States District Court Judge Timothy J. Corrigan has sentenced Omar Wilkin Santos-Calix and Oscar Rene Santos-Santos, both Honduran nationals and both illegally present in United States, to 24 months in federal prison for conspiracy to commit wire fraud and conspiracy to commit tax fraud. The court also ordered Santos-Calix to pay restitution to the IRS in the amount of $3,245,161 and entered a money judgment against Santos-Calix in the amount of $897,870, representing the proceeds of the wire fraud. The court ordered Santos-Santos to pay restitution to the IRS in the amount of $1,773,429 and entered a money judgement against Santos-Santos in the amount of $490,634, representing the proceeds of the wire fraud.
According to court documents, Santos-Calix and Santos-Santos established a shell company that purported to be involved in the construction industry. They obtained a workers’ compensation insurance policy in the name of the shell company to cover a minimal payroll for a few purported employees, then “rented” the workers’ compensation insurance to work crews who had obtained subcontracts with construction contractors on projects in various Florida counties as well as contractors in other states. Santos-Calix and Santos-Santos sent the contractors a certificate as “proof” that the work crews had workers’ compensation insurance, as required by Florida law. By sending the certificate, the defendants falsely represented that the work crews worked for the two companies. Over the course of the scheme, the defendants “rented” the certificates to dozens of work crews, defrauding the worker’s compensation insurance carrier.
As part of the scheme, the contractors issued payroll checks for the workers’ wages to the shell companies and Santos-Calix and Santos-Santos cashed these checks, then distributed the cash to the work crews after deducting their fee, which was typically about 6% of the payroll. During the scheme, both defendants cashed payroll checks totaling approximately $19 million, with their fees totaling over $1 million. Neither the shell company nor the contractors reported to government authorities the wages that were paid to the workers, nor did they pay either the employees’ or the employer’s portion of payroll taxes – including Social Security, Medicare, and federal income tax. According to the IRS, the amount of payroll taxes due on wages collected by Santos-Calix and Santos-Santos totaled $5,018,590.
The scheme also facilitated the avoidance of the higher cost of obtaining adequate workers’ compensation insurance for the numerous workers on the work crews to whom Santos-Calix and Santos-Santos “rented” the workers’ compensation insurance. The two policies that the defendants purchased and then “rented” out was for an estimated payroll of $175,000, and the insurance company issued policies for a premium of approximately $21,000. Had a workers’ compensation insurance policy been purchased for the actual payroll totaling approximately $19,000,000, the policy premium would have totaled about $2.5 million.
“Through their illegal workers compensation payroll and insurance fraud scheme, these individuals sought to defraud the U.S. government and undercut legitimate private businesses, while taking advantage of noncitizen workers, for their own personal profit,” said Assistant Special Agent in Charge K. Jim Phillips, HSI Jacksonville. “Rest assured that HSI special agents, IRS Criminal Investigation, and our law enforcement partners will vigilantly pursue those who think they can operate without regard to U.S. laws.”
“Through their actions, these defendants attempted to create an environment that favored cheaters,” said IRS-CI Acting Special Agent in Charge Tara K. Reed. IRS-CI prioritizes cases involving individuals who seek to hurt tax-compliant individuals and businesses. Through our partnership with HSI and the United States Attorney’s Office, we will continue to identify bad actors and work together to vigorously investigate and prosecute these payroll tax and worker’s compensation insurance schemes.”
This case was investigated by Homeland Security Investigations (HSI), the Internal Revenue Service – Criminal Investigation, and the Florida Department of Financial Services. It was prosecuted by Assistant United States Attorney John Cannizzaro. The forfeiture was handled by Assistant United States Attorney Mai Tran.
Harrison County man sentenced 15 years for drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jesse James Wilson, age 40, of Clarksburg, West Virginia, was sentenced to more than 15 years in prison for methamphetamine and firearms charges.
Wilson pled guilty in March 2023 to possession with intent to distribute 50 grams or more of methamphetamine and possession of firearm during in furtherance of drug trafficking. This week, he was ordered to serve a 188-month sentence. According to court documents and statements made in court, Wilson was selling methamphetamine in Harrison County and a search of his home yielded drugs, firearms, and $9,000 in cash.
Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government.
The Drug Enforcement Administration; the Greater Harrison Drug Task Force and the Eastern Panhandle Drug Task Force, both HIDTA-funded initiatives; the West Virginia State Police, the Berkeley County Sheriff’s Department; and the Martinsburg Police Department investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Hampton Man Sentenced for Multi-State Firearms TraffickingRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 57 months in prison for making false statements during the purchase of firearms so that he could deal firearms, some with obliterated serial numbers, without a license to others.
According to court documents, in June 2022, John Magobet, 58, came to the attention of the Bureau of Alcohol, Tobacco, Firearms and Explosives as an individual who was purchasing firearms from a local Federal Firearms Licensee (FFL) to resell to individuals in different states with restricted gun laws, including the southern New Jersey area and Philadelphia, Pennsylvania. Magobet indicated on multiple ATF forms that he was the actual buyer of the firearms, when, in fact, the actual buyer of the firearms was an individual he knew as “E”, from New Jersey. For a $500 fee per firearm, Magobet purchased and delivered to “E” two AR-15-type rifles, and four Glock pistols, which were desired so that “E” could install Glock switch-style machinegun conversion devices and re-sell them as machineguns. Magobet showed one potential buyer how to deface the firearms by removing the serial numbers saying “erase, erase, erase.” Magobet also stated to a potential buyer that he wanted to be advised if someone did something "stupid" with the firearm he sold so that Magobet could report the firearm stolen to “cover” himself.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Craig Kailimai, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Devon Heath 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 No. 4:23-cr-20.
Félix Verdejo-Sánchez Sentenced to Life in Prison for Kidnapping Resulting in Death, and Intentionally Killing an Unborn ChildRead the Press Release
SAN JUAN, Puerto Rico –Félix Verdejo-Sánchez was sentenced today to life in prison for federal crimes that arise from the murder of Keishla Rodríguez Ortiz on April 29, 2021.
On July 28, 2023, a jury determined, according to court documents and evidence presented at trial, that Félix Verdejo-Sánchez, along with his co-defendant Luis Antonio Cádiz-Martínez, aiding and abetting each other, committed a kidnapping that resulted in the death of Keishla M. Rodríguez Ortiz and her unborn child.
On the morning of April 29, 2021, Félix Verdejo-Sánchez executed a premeditated plan to murder Keishla Rodríguez Ortiz and her unborn child by luring Ms. Rodríguez Ortiz into his Dodge Durango where, with the assistance of Luis Cádiz Martínez, Verdejo punched Ms. Rodríguez Ortiz, injected her with drugs and then tied her with metal wire to a cement block. Mr. Verdejo Sánchez then drove the victim to the Teodoro Moscoso bridge, and, with Cadiz’s assistance, threw Ms. Rodríguez Ortiz into the San José Lagoon. He later jumped into the lagoon in order to finish murdering both victims.
“Today’s life sentence rightly holds Verdejo-Sánchez responsible for the pain and suffering he inflicted on his victims,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “To this day, the defendant maintains his unrepentant attitude. Like Verdejo-Sánchez now knows, anyone who commits cold-blooded crimes of violence in violation of federal law will be prosecuted to the fullest extent of the law by the Justice Department and this office.”
“In cases such as this one, regardless of the outcome, there is no way to restore what has been lost,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “The only salve we can offer victim’s families is to do our work zealously and without rest, until justice is served. I believe we have done that here and I pray that this will give Keishla’s family some peace. Special recognitions to the US Attorney’s Office for the District of Puerto Rico, the Police of Puerto Rico and to our Violent Crimes Squad for a detailed and arduous job well done.”
The FBI was in charge of the investigation with the close collaboration and support of the Puerto Rico Department of Public Safety, the Puerto Rico Police Bureau, and the Puerto Rico Department of Justice.
Assistant United States Attorney Jonathan Gottfried, Chief of the Violent Crimes and National Security Section at the U.S. Attorney’s Office and Assistant U.S. Attorney Jeanette Collazo prosecuted the case.
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Fort Towson Resident Sentenced for Voluntary Manslaughter in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Shonda Lynette Johnson, age 52, of Fort Towson, Oklahoma, was sentenced to 135 months in prison for Voluntary Manslaughter in Indian Country.
The charges arose from investigations by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, and the Choctaw County Sheriff’s Office.
On September 29, 2022, a federal jury convicted Johnson at trial of Voluntary Manslaughter in Indian Country. At trial, the United States presented evidence that on November 17, 2019, Johnson confronted the victim, struck him in the head with a blunt instrument, fatally stabbed him in the abdomen, and waited over 45 minutes to call for medical assistance. The crime occurred in Choctaw County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Johnson will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Jordan Howanitz represented the United States.
Fort Myers Man Sentenced to 24 Years in Prison for Killing an FBI InformantRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced James Franklin Broomfield, Jr. (37, Fort Myers) to 24 years in federal prison for tampering with an informant by killing. The court ordered the sentence to run consecutive to a sentence Broomfield is currently serving for possession of a firearm as a convicted felon. Broomfield had pleaded guilty on January 9, 2019.
According to court documents and evidence presented in the related trial of United States v. Robert Lee Ward, Robert Ward was the leader of a drug trafficking organization (DTO) in Fort Myers that distributed cocaine in Fort Myers and other locations for over a decade until Ward’s arrest in 2018. In 2012, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Lee County Sheriff’s Office were investigating Ward and his DTO when the FBI obtained the assistance of Kristopher Smith, a member of Ward’s DTO, who agreed to cooperate in the investigation. Ward learned about Smith’s cooperation with investigators and solicited Broomfield to kill Smith. Broomfield agreed to kill Smith for $30,000. Ward provided Broomfield with a loaded firearm and told him where to locate Smith.
On January 7, 2013, Broomfield and another individual followed Smith and his girlfriend as they drove to their son’s school in Fort Myers. Smith remained in the car while his girlfriend entered the school to deliver lunch to their son, who was a first-grade student at the school. Broomfield and his accomplice parked their vehicle behind the informant’s car. Broomfield ran up to the car and shot Smith several times, killing him.
A jury has found Ward guilty of conspiracy to distribute over five kilograms of cocaine, and tampering with an informant by killing, and he is pending sentencing.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Lee County Sheriff’s Office, and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Michael Sinacore.
This investigation is the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Former school employee pleads guilty to child porn chargeRead the Press Release
WICHITA, KAN. – A Kansas man pleaded guilty to one count of receiving child pornography.
According to court documents, Eric Caleb Carlson, 43, of Wichita admits to downloading and receiving videos and images depicting prepubescent children subjected to sex acts.
In June 2023, Synchronoss Technologies submitted two reports to the National Center for Missing and Exploited Children (NCMEC) regarding files uploaded to its cloud-based backup service containing child sexual abuse/exploitation material. Law enforcement investigators linked the account to Eric Carlson based on evidence including a photograph of Carlson’s driver’s license, a selfie of Carlson, and photographs taken at Wichita Unified School District 259, where Carlson formerly worked in the IT division.
Carlson was arrested at the USD 259 office (his now former place of employment), and his phone was seized. A search of his phone revealed numerous images and videos of child sex abuse material located in a password protected private folder.
Carlson also had the Onion Router (“Tor”) on his device, which is a free and open source software for enabling anonymous communications and access to the dark web. Investigators reviewed Carlson’s Tor browser history and found cached darknet webpages he had visited that offered access to child exploitation materials. In July 2023, Carlson downloaded and received a zip file from the dark web containing child sex abuse material.
Carlson is scheduled to be sentenced on January 22, 2024. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations (HSI) and the Kansas Internet Crimes Against Children (ICAC) Task Force are investigating the case.
Assistant U.S. Attorney Molly Gordon is prosecuting the case.
Project Safe Childhood
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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.###
Former school board member convictedRead the Press Release
CORPUS CHRISTI, Texas – A former member of the Corpus Christi Independent School District Board has pleaded guilty to filing a false tax return, announced U.S. Attorney Alamdar S. Hamdani.
The investigation into John Longoria began in December 2018 following an approximately two-year extensive and suspicious remodeling project that occurred at his home. Authorities ultimately executed several search warrants at his residence and elsewhere in November 2020.
As a result of the financial investigation, law enforcement determined Longoria had underreported his income to the IRS for tax years 2014 through 2016. As part of his plea, he admitted he had failed to truthfully disclose to the IRS all income he received in the form of goods, property or services during that time.
Longoria has agreed to pay restitution to the Department of the Treasury in the amount of $187,315.
U.S. District Judge David S. Morales will impose sentencing Jan. 24, 2024. At that time, Longoria faces up to three years in federal prison and a possible $100,000 maximum fine.
Longoria was permitted to remain on bond pending that hearing.
The FBI and IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Former Postal Employee Pleads Guilty to Embezzling the MailRead the Press Release
NEW ORLEANS – COI MORRIS, age 25, of New Orleans, Louisiana pled guilty on November 1, 2023 to embezzling the mail, announced U.S. Attorney Duane A. Evans.
According to court documents, COI MORRIS was employed by the United States Postal Service as a mail handler at the processing center in New Orleans when he was apprehended stealing items from the mail he was entrusted to handle. The defendant pled guilty before United States District Sarah S. Vance and sentencing is set for February 21, 2024.
The maximum penalty for the offense is five years imprisonment and/or a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim, followed by up to three years of supervised release, and a mandatory special assessment fee of one hundred dollars.
U.S. Attorney Evans praised the work of the United States Postal Service, Office of the Inspector General in investigating this matter. Assistant United States Attorney Richard R. Pickens, II of the Financial Crimes Unit is in charge of the prosecution.
Former Norman Car Dealership Owner Chris Mayes to Serve Nearly 11 Years in Federal Prison for Wire Fraud Conspiracy, Forgery, Identity Theft, and Obstruction of JusticeRead the Press Release
Defendant Has Paid More Than $1,100,000 in Restitution, and Has Also Been Ordered to Forfeit more than $1,000,000
OKLAHOMA CITY – Today, BOBBY CHRIS MAYES, 51 of Norman, was sentenced to serve 130 months in federal prison for wire fraud, conspiracy, issuing forged securities, aggravated identity theft, and obstruction of justice, announced U. S. Attorney Robert J. Troester. Mayes’ co-defendants CHARLES GOOCH, 65 of Moore, and COURTNEY WELLS, 38 of Norman, will be sentenced in the coming weeks.
“The extensive deception and manipulation employed by Mr. Mayes in this fraud scheme continued after his conviction in seeking to deceive and manipulate his co-defendants and even the Court,” said U.S. Attorney Troester. “Today’s sentence demonstrates that schemes to defraud will eventually be revealed and severe consequences will be imposed. I commend the outstanding work done by both investigators and prosecutors in this case.”
“Mayes and his co-defendants orchestrated an elaborate scheme to defraud car buyers and lenders out of millions of dollars by misrepresenting the type, source, and amount of borrower’s down payments and vehicle trade-ins. This long-running conspiracy resulted in significant losses to over 20 financial institutions, while hundreds of borrowers were saddled with debt they simply could not afford,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “The sentence handed down today should serve as a stark reminder that this level of greed comes with an even bigger price to pay. The FBI recognizes the impact of fraudulent business practices on American consumers, and we will continue to work with our law enforcement partners to ensure predators like Mayes are brought to justice.”
Original Charges and Trial
On September 16, 2020, Mayes, Gooch, and Wells were indicted on 25 counts for using their positions as co-owners of the Big Red Dealerships (Big Red Sports/Imports, Big Red Kia, Norman Yamaha, Norman Mitsubishi, and Mayes Kia) to engage in a conspiracy to commit wire fraud in which they sought to obtain millions of dollars of loan proceeds.
Mayes was the owner of the Big Red Dealerships, Gooch was the compliance officer, and Wells was the financial controller. The government alleged each defendant made materially false statements and omissions to lenders about the type, source, and amount of borrowers’ down payments or vehicle trade-ins, and bribed at least one loan officer.
From November 2, 2021, through November 19, 2021, a jury trial was held in Oklahoma City. At trial, the jury heard testimony that the Big Red Dealerships used advertisements to target potential customers with poor credit and that Mayes, Gooch, and Wells then fraudulently induced lenders to approve loans for such customers by documenting that the customers provided cash down payments and/or trade-in vehicles when that was untrue. Twelve different Big Red Dealership customers testified about their experiences buying cars at the Big Red Dealerships, along with several former employees and representatives of several lenders. In some circumstances, the purported cash down payment was simply fictitious, and the Big Red Dealerships referred to those cash down payments as “King Cash” on internal documents. The jury also heard testimony that in late 2014, one lender discovered these fake cash down payments, and Mayes emailed threats to the CEO of that lender in an effort to stop the lender from further investigating the Big Red Dealerships.
Evidence at trial also showed that from February 2015 until late 2017, the Big Red Dealerships continued to document fictitious cash down payments for lenders. During that time period, for hundreds of customers, the down payment was based on items that were allegedly sold to Norman Pawn & Gun, a pawn shop owned by Gooch and located in a building owned by Mayes, although it was never open for business and never had any employees. After loan proceeds were received from lenders, Big Red Dealership employees generated checks to the customers for the pawned items, forged the customers’ signatures on the checks, deposited the checks in Big Red Dealership accounts, and later fully reimbursed Norman Pawn & Gun for the purported down payments.
The jury also heard that the Big Red Dealerships falsely documented vehicle trade-ins for lenders to approve loans. On hundreds of other occasions, the trade-in vehicle was never provided to the Big Red Dealerships and a separate transaction was documented—unbeknownst to the lender—in which the trade-in vehicle was resold to the customer for a dollar. Finally, the jury heard testimony that at least one lender approved questionable loans—for up to two to three times’ the value of vehicles being purchased—after a Big Red Dealership manager gave cash bribes to a loan officer and the Big Red Dealerships provided fake invoices to justify the inflated prices.
On November 19, 2021, the jury convicted all three defendants of conspiring to commit wire fraud, convicted Mayes and Gooch with 12 counts of wire fraud based on false information sent to lenders for 12 specific customers, and convicted Wells of six of those counts of wire fraud.
Post-Trial Flight to Mexico by Wells, Obstruction of Justice by Mayes, and New Charges
Following the trial and while awaiting sentencing in May of 2022, Wells and her boyfriend, Brandon Landers, fled to Mexico to avoid incarceration. Following a manhunt for the two fugitives they were captured in the state of Oaxaca, Mexico in October of 2022 and were returned to the United States.
On February 17, 2023, Mayes was indicted and charged with three counts of tampering with official proceedings. The government alleged Mayes orchestrated and helped to secure the unavailability of Wells in the proceeding, fabricated e-mails and other evidence in an effort to secure a new trial in that prior case, and sent an anonymous e-mail to the Court as part of his effort to obtain a new trial.
On June 23, 2023, Mayes pled guilty to two counts of tampering with official proceedings. At the plea hearing, Mayes admitted he had helped to convince co-defendant Wells to flee to Mexico while they were awaiting sentencing and that he provided financial support for her flight.
Based on these new allegations, Mayes was ordered to be detained pending sentencing.
Landers pled guilty on December 6, 2022, to conspiring to tamper with official proceedings based on his involvement in helping Wells flee to Mexico. He is awaiting sentencing.
Sentencing Hearing Today
At sentencing hearings today, testimony and evidence were presented regarding Mayes’ efforts to assist Wells’ flight to Mexico, falsified evidence presented to the court, and threats to kill a witness who testified at his trial. Defendants Wells and Gooch cooperated with the government and testified against Mayes and will be sentenced in the coming weeks.
At the sentencing hearing today, U. S. District Judge Stephen P. Friot sentenced Mayes to serve 130 months in federal prison on his fraud-related counts and 65 months in federal prison for his obstruction-related counts, to run concurrently. Mayes had already paid $1,160,825.72 in restitution. Mayes was also ordered to forfeit profits from the scheme in the amount of $1,018,322.17.
In announcing the sentence, Judge Friot noted the aggravating factors surrounding the lengthy underlying fraud scheme, but particularly emphasized the schemes to defraud the Court and the Government as part of his obstruction of justice following the trial.
Investigation and Prosecution Team
This case is the result of an investigation by FBI’s Oklahoma City Field Office. Assistant U.S. Attorneys Thomas Snyder and Jacqueline Hutzell prosecuted the case.
Reference is made to public record for more information.
Former Medical Doctor Sentenced to Prison for Tax EvasionRead the Press Release
MINNEAPOLIS – A former medical doctor has been sentenced to four months in federal prison, a six-month term of home confinement, two years supervised release, and a requirement to pay full restitution following an extensive tax-evasion scheme, announced U.S. Attorney Andrew M. Luger.
According to the plea agreement and other court documents, from at least 2000 until 2018, Joseph David Meyer, 62, of Roseau, Minnesota, earned significant taxable income as a licensed medical doctor as well as income and interest from his ownership of rental properties. Meyer repeatedly challenged his tax obligations in court, concealed his taxable income, and even sued his rental tenants for complying with legitimate IRS levies. Meyer’s evasion resulted in a total tax loss of $484,164.
Meyer pleaded guilty on June 29, 2022, to one count of tax evasion. Meyer was sentenced yesterday in U.S. District Court before Judge Donovan W. Frank.
This case is the result of an investigation conducted by IRS – Criminal Investigations.
Assistant U.S. Attorney Jordan Sing prosecuted the case.
Former Gadsden Pharmacist and City School Board Member Sentenced for Drug Distribution Conspiracy and Tax CrimesRead the Press Release
BIRMINGHAM, Ala. – A former Gadsden-area pharmacist and city school board member was sentenced yesterday for drug distribution conspiracy and tax crimes, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, Drug Enforcement Administration Special Agent in Charge Brad L. Byerley, and Acting Special Agent in Charge Demetrius D. Hardeman of IRS Criminal Investigation (IRS-CI).
U.S. District Court Judge R. David Proctor sentenced Nathan Thomas Carter, 41, of Gadsden, to 54 months in prison. In July, Carter pleaded guilty to one count of conspiracy to unlawfully distribute controlled substances and three counts of filing false tax returns. Carter was also ordered to forfeit $110,620 in illicit drug proceeds and pay restitution to the IRS of $124,547 in unpaid taxes.
According to the plea agreement, between 2015 and late 2021, Carter conspired with others to distribute controlled substances including oxycodone and hydrocodone. Between February 2018 and 2023, Carter worked as the pharmacist in charge at Midtown Pharmacy in Gadsden. Records reflect that Midtown Pharmacy ordered at least 80,000 more oxycodone pills than the pharmacy dispensed to patients. Carter diverted opioid pills from the pharmacy and sold those pills to other drug distributors. He regularly took distributor bottles from his pharmacy to his house, where he repackaged the pills in plastic bags for resale. Carter admitted to earning about $450,000 in illicit income, which he failed to report on his income tax returns. According to the plea agreement, during the execution of a search warrant at Carter’ house, authorities found more than $110,000 in cash.
The FBI, DEA, and IRS investigated the case. Assistant U.S. Attorney J.B. Ward prosecuted the case.
Former Edmond Resident Sentenced to Serve 20 Months in Federal Prison for Fraud on Main Street Lending Program Created in Response to the PandemicRead the Press Release
Defendant Also Ordered To Pay More Than $250,000 In Restitution
OKLAHOMA CITY – Today, JILL NICOLE FORD, 32, formerly of Edmond, Oklahoma, was sentenced to serve 20 months in federal prison and pay $252,143.35 in restitution for bank fraud and money laundering related to a loan obtained through the Main Street Lending Program (MSLP), a lending facility established by the Federal Reserve Board and supported with funding authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), announced U. S. Attorney Robert J. Troester.
The CARES Act provided more than $2 trillion in relief for individuals and businesses adversely affected by the coronavirus pandemic. The CARES Act also authorized the Secretary of the Treasury and the Federal Reserve Board to create the MSLP to promote lending to small-and medium-sized businesses affected by the pandemic.
On January 7, 2022, Ford was charged by information with fraudulently obtaining a Main Street Lending Program Loan for her business, Oliver & Olivia Apparel, Inc. According to public documents, Ford obtained the loan from Citizens Bank of Edmond on September 11, 2020, and executed a loan agreement falsely representing she would use MSLP funds for working capital and payroll only. She also falsely represented she would not make financial distributions to herself as the owner of Oliver & Olivia Apparel, Inc. The information further alleged that Ford laundered the loan proceeds by using them to pay for construction of her personal home. Other loan funds were used to purchase a luxury SUV for Ford’s personal use. Ford pleaded guilty to both charges in the information on January 20, 2022.
“Despite her promise to use these taxpayer funds to pay for necessary business payroll expenses and working capital during the pandemic, Ms. Ford instead chose to fund her own personal lavish lifestyle, “said U. S. Attorney Robert J. Troester. “I applaud the teamwork of our prosecutors and federal law enforcement partners, who continue to aggressively pursue those who take advantage of taxpayer funds.”
“Jill Ford defrauded the Main Street Lending Program and has now been brought to justice for her actions,” said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “Let this serve as a warning that while the pandemic may be over, we remain committed to vigorously pursuing those who defraud pandemic relief programs. I commend our agents and our federal law enforcement partners for their hard work and persistence and thank the U.S. Attorney’s Office for prosecuting this case.”
“Ms. Ford engaged in a scheme to defraud the Main Street Lending Program that was designed to help small/medium-sized businesses and nonprofit organizations,” said Brian D. Miller, Special Inspector General for Pandemic Recovery (SIGPR). “SIGPR is glad to have played a significant role teaming with its law enforcement partners and the United States Attorney’s Office to hold this individual accountable for her actions.”
At the sentencing hearing today, U.S. District Judge Jodi D. Dishman sentenced Ford to serve 20 months in federal prison, and to pay restitution in the amount of $252,143.35. In announcing the sentence, the court noted Ford’s lack of previous criminal conduct, but also noted the seriousness of the offenses, describing Ford’s actions as “crimes of greed and selfishness.” Judge Dishman ordered Ford to self-surrender to the Bureau of Prisons on January 2, 2024, to begin serving her sentence.
This case is the result of an investigation by SIGPR, Oklahoma City FBI Field Office, Internal Revenue Service–Criminal Investigations, the United States Secret Service, Federal Reserve Board Office of Inspector General, and Small Business Administration Office of Inspector General. Assistant U.S. Attorney Jessica L. Perry prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
In March of 2022, the U.S. Attorney’s Office and SIGPR entered into a Memorandum of Understanding (MOU) to further strengthen and enhance the already existing cooperative efforts to investigate and prosecute fraud involving loans, loan guarantees and other relief made by the Secretary of the Treasury under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, which included over $2 trillion in emergency financial assistance designed to provide immediate help for American businesses and individuals. More information on this partnership can be found here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Reference is made to court filings for further information.
Former Alabama Sheriff’s Deputy Charged with Federal Civil Rights Offense for Excessive ForceRead the Press Release
MONTGOMERY, ALABAMA – On October 31, 2023, a federal grand jury in Montgomery, Alabama, returned an indictment charging a former Elmore County Sheriff’s Deputy with depriving an arrestee of his civil rights under color of law. The indictment was unsealed following Hick’s initial appearance in federal court, which occurred on November 3, 2023.
The indictment charges former Sheriff’s Deputy Blake Hicks, 33, with one count of deprivation of rights under color of law for willfully using unreasonable force against an arrestee. Specifically, the indictment alleges that, without legal justification, Hicks punched and kicked the arrestee in or around the head while the arrestee was handcuffed and lying on the ground, resulting in bodily injury.
The charge carries a maximum penalty of 10 years in prison. A federal judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Acting United States Attorney Jonathan S. Ross for the Middle District of Alabama, and Special Agent in Charge Paul W. Brown of the FBI Mobile Field Office made the announcement.
The FBI Mobile Field Office investigated this case.
Assistant United States Attorney Eric Counts for the Middle District of Alabama and Trial Attorney Laura-Kate Bernstein and Special Litigation Counsel Michael J. Songer of the Civil Rights Division’s Criminal 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.
Former Alabama Sheriff’s Deputy Charged with Federal Civil Rights Offense for Excessive ForceRead the Press Release
A federal grand jury in Montgomery, Alabama, unsealed an indictment today charging a former Elmore County Sheriff’s Deputy with depriving an arrestee of his civil rights under color of law.
The indictment charges former Sheriff’s Deputy Blake Hicks, 33, with one count of deprivation of rights under color of law for willfully using unreasonable force against an arrestee, who is identified in the indictment as T.Q. Specifically, the indictment alleges that, without legal justification, Hicks punched and kicked T.Q. in or around the head while T.Q. was handcuffed and lying on the ground, resulting in bodily injury to T.Q.
If convicted, Hicks faces a maximum penalty of 10 years in prison. A federal judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Jonathan S. Ross for the Middle District of Alabama and Special Agent in Charge Paul W. Brown of the FBI Mobile Field Office made the announcement.
The FBI Mobile Field Office investigated this case.
Assistant U.S. Attorney Eric Counts for the Middle District of Alabama and Trial Attorney Laura-Kate Bernstein and Special Litigation Counsel Michael J. Songer of the Civil Rights Division’s Criminal 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.
View the indictment here.
Foreign national charged with firearms violationRead the Press Release
HOUSTON – A federal grand jury has returned an indictment against a 20-year-old Palestinian citizen for possession of a firearm by a prohibited person, announced U.S. Attorney Alamdar S. Hamdani.
The charges allege Sohaib Abuayyash was an alien illegally and unlawfully in the United States. He knowingly possessed a firearm, namely a Canik, model TP9 Elite SC, 9 mm pistol, according to the indictment.
The FBI arrested Abuayyash Oct. 19 who remains detained pending further criminal proceedings. He is set to appear for his arraignment Nov. 13 before U.S. Magistrate Judge Yvonne Ho in Houston at 2 p.m.
According to the criminal complaint filed upon his arrest, Abuayyash entered the United States on a nonimmigrant visa, which expired in 2019, and has allegedly been in direct contact with others who share a radical mindset. The charges further allege he has been conducting physical training and has trained with weapons to possibly commit an attack.
If convicted, he faces up to 15 years in federal prison as well as a possible $250,000 maximum fine.
The FBI is conducting the investigation.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Florida Man Pleads Guilty to Making Violent Online ThreatsRead the Press Release
NORFOLK, Va. – A Parrish, Florida, man pleaded guilty today to sending threatening messages online.
According to court documents, in April and May 2023, John Muccio, 39, sent numerous online threats to a debt collection company located in Norfolk. The company had sent letters and attempted to call Muccio about money he owed. In response, Muccio sent several different threatening messages via the company’s Artificial Intelligence Chatbot. In the messages, Muccio used racial slurs and threatened to kill the employees of the company and sexually assault the co-founders’ family members.
The FBI was able to trace the threats to Muccio at his residence in Florida. A review of Muccio’s cell phone showed he had the company’s website bookmarked on his internet browser.
Muccio pleaded guilty to making threatening interstate communications and is scheduled to be sentenced on March 5, 2024. He faces a maximum penalty of 5 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Elizabeth W. Hanes accepted the plea.
Assistant U.S. Attorney Elizabeth Yusi is prosecuting 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 No. 2:23-cr-87.
Federal Jury Convicts West Palm Beach Felon of Distributing Dangerous Drugs and Illegally Possessing a MachinegunRead the Press Release
MIAMI – On Nov. 1, a federal jury in West Palm Beach convicted Willie Boone, 24, on multiple drug trafficking and firearms charges related to his participation in a conspiracy to sell a synthetic opioid, commonly sold as fentanyl, cocaine, and Eutylone (a synthetic cathinone with effects akin to Methylenedioxymethamphetamine), and his possession of a machinegun in furtherance of those crimes.
According to court documents, on or about March 3, 2022, the West Palm Beach Police Department executed a search warrant at a West Palm Beach residence. Boone was detained on scene. During the search, officers recovered multiple controlled substances, including N-Pyrrolidino Etonitazene, Eutylone, and cocaine. Other recovered evidence included two of Boone’s cellphones and two firearms, one of which was a Glock Model 17 pistol with a machinegun conversion device. That conversion device, commonly known as a “Glock Switch” rendered the pistol fully automatic. Boone, who previously had been convicted of three felony drug-trafficking offenses was prohibited from possessing a firearm, including the unregistered machinegun. Forensic evidence recovered from the cellular telephones and Boone’s DNA on the Glock Model 17 pistol confirmed his possession of the firearm and possession in the charged drug conspiracy.
The jury convicted Boone of conspiracy to possess with intent to distribute and to distribute controlled substances, possession of controlled substances with intent to distribute, possession of a machinegun in furtherance of a drug trafficking crime, being a felon in possession of a firearm, and failing to register a machinegun.
Boone is scheduled to be sentenced on Jan. 24, 2024. He faces a mandatory minimum penalty of 45 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and West Palm Beach Police Department Chief Frank Adderley announced the conviction.
ATF and the West Palm Beach Police Department investigated the case.
Assistant U.S. Attorneys Shannon O’Shea Darsch and Alexandra Chase are prosecuting the case. Assistant U.S. Attorney Gabrielle Charest-Turken for the Southern District of Florida is handling asset forfeiture.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-CR-80175.
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Federal Jury Convicts Lexington Man of Armed Drug TraffickingRead the Press Release
LEXINGTON, Ky.- A Lexington man was convicted on Thursday, by a federal jury in Lexington, of drug trafficking and firearms offenses.
After 3 hours of deliberations, following a 3-day trial, the jury convicted 36-year-old Chase Russell Downey of conspiracy to distribute and possess with intent to distribute more than 5 kilograms of cocaine, possession with intent to distribute more than 500 grams of cocaine, possession of firearms by a convicted felon, conspiracy to commit money laundering, and possession of firearms in furtherance of drug trafficking.
According to testimony at trial, Downey was selling kilogram quantities of cocaine in Lexington. Downey had a residence in Mexico, that he used as a base of operation in Mexico; he had a residence in Houston, Texas; and he had a residence where he stayed in Lexington. Evidence presented at trial established that on several occasions law enforcement conducted surveillance and encountered Downey. On December 12, 2022, law enforcement observed Downey leaving a residence in Lexington carrying two large plastic bags and going to potential meet locations, where he would distribute cocaine. Subsequently, Downey was arrested and a search warrant was conducted on the local residence, where a large amount of cocaine, other drugs, numerous loaded firearms, and $70,000 in drug trafficking proceeds were seized.
Additional investigation determined that Downey made at least fourteen trips to Mexico during the relevant period. Downey has prior felony convictions and was on supervised release for at least one prior federal felony conviction at the time of the commission of these offenses.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI Louisville Field Office; J. Todd Scott, Special Agent in Charge, DEA Louisville Field Division; and Phillip J. Burnett, Commissioner of the Kentucky State Police (KSP), jointly announced the jury verdict.
The investigation was conducted by FBI, DEA, and the KSP. Assistant U.S. Attorney Roger West prosecuted the case on behalf of the United States.
Downey is scheduled for sentencing on February 23, 2024. He faces a minimum of 30 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Federal Jury Convicts Georgia Man of Bank Fraud Conspiracy and Identity TheftRead the Press Release
CONCORD – A Georgia man was convicted today by a federal petit jury in Concord for bank fraud conspiracy and identity theft after a five-day trial, United States Attorney Jane E. Young announces.
Lestor Aceituno, 40, of Atlanta, Georgia was convicted of one count of conspiracy to commit bank fraud and two counts of aggravated identity theft. Chief Judge Landya B. McCafferty scheduled sentencing for February 12, 2024.
“Today’s swift verdict by the jury sends a clear message to fraudsters like the defendant that these crimes will be prosecuted and will result in convictions,” said U.S. Attorney Jane E. Young. "This office and our law enforcement partners will continue to investigate those that brazenly steal and use other identities for their personal gain.”
Between June of 2016 and October of 2017, Aceituno and others used stolen identities to open accounts at banks in New Hampshire, Massachusetts, and Georgia. Aceituno opened or accessed post office boxes in Massachusetts and Georgia to receive debit cards and pin numbers to access these accounts. Aceituno’s co-conspirators then deposited fraudulent checks totaling more than $119,000. After the money was credited to the accounts, but before the bank determined the checks were false, one of Aceituno’s co-conspirators withdrew the money and gave it to another co-conspirator, the leader of the scheme.
The charging statute provides a sentence of no greater than 30 years in prison for conspiracy to commit bank fraud and a mandatory consecutive 2-year sentence for aggravated identity theft. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The United States Postal Inspection Service and the Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Brockton, Massachusetts Police Department, Homeland Security Investigations, and the Social Security Administration Office of the Inspector General. Assistant U.S. Attorneys Matthew T. Hunter and Geoffrey W.R. Ward are prosecuting the case.
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Ecuadorian Man Sentenced to 70 Months on Cocaine Possession ChargeRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Nestor Vera Escalante of Ecuador was sentenced to 70 months incarceration before Chief District Judge Robert A. Molloy on his conviction of conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States after pleading guilty on February 28, 2023.
According to court documents, on July 12, 2021, while on routine patrol, the United States Coast Guard Cutter Mohawk intercepted a low-profile vessel located 125 nautical miles south, southwest of Isla De Molpelo, Colombia. The vessel was in international waters and displayed no signs of nationality. The vessel also exhibited suspicious factors including the low-profile construction, no navigation lights, and operation in a known drug vector. The vessel was later determined to be without nationality, thus subject to the jurisdiction of the United States. Upon inspection of the low-profile vessel, Escalante, Jairo Riascos Preciado and Inocencio Espana Castillo, both of Columbia, were found onboard. Also found onboard were 793 kilograms of cocaine inside the hull of the vessel. Preciado and Castillo pleaded guilty on February 13, 2023, and Preciado was sentenced on July 7, 2023, to 100 months incarceration. Castillo awaits sentencing.
This case was investigated by the United States Coast Guard, Homeland Security Investigations and Drug Enforcement Administration and prosecuted by United States Attorney Delia L. Smith and Assistant United States Attorney Natasha Baker. 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.
District Man and Maryland Man Sentenced for a Series of Armed Robberies Targeting Area BusinessesRead the Press Release
WASHINGTON – Quaysa Flumo, 35, of Washington, D.C., was sentenced today to 234 months in prison and Emmanuel Sumo, 29, of Takoma Park, Md., was sentenced to 214 months for a string of armed robberies that struck a series of gas stations, liquor stores, convenience stores, and restaurants in the Washington, D.C. metropolitan area, all within a four-week period in 2018.
The announcement was made by U.S. Attorney Matthew M. Graves; FBI Special Agent in Charge Wayne A. Jacobs, of the Washington Field Office’s Criminal and Cyber Division, Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD). Chief Marcus G. Jones, of the Montgomery County, Md., Police Department, and Chief Antonio DeVaul, of the Takoma Park, Md., Police Department.
According to the government’s evidence, Flumo and Sumo were members of a trio - which included Enyinna “Reggie” Onyewu, 31, of Silver Spring, Md. – and were found guilty by a jury in U.S. District Court on March 28, 2022, of federal conspiracy, robbery, and (for Flumo and Sumo) related weapons charges. The government’s evidence showed that Onyewu took part in five of the robberies; Sumo in seven of the robberies; and Flumo in all 10 of the robberies.
Throughout January 2018, the defendants, working together, robbed a series of gas stations, liquor stores, convenience stores, and restaurants in the Washington, D.C. metropolitan area. In each of the robberies, the defendants were armed with a .45 caliber handgun. They wore masks and gloves to avoid being identified. During several robberies, they physically assaulted store employees and put the gun directly to the heads of their victims. The robberies took place at various hours, including some in broad daylight. The victims were left shaken and shocked by the incidents. Fortunately, none of them sustained serious physical injuries.
At trial, the government presented testimony from nearly 30 witnesses. The first robbery took place on Jan. 2, 2018, at a gas station in Silver Spring. Other targets were in Takoma Park, Md., Silver Spring, Md., Northwest Washington, and Arlington, Va. On Jan. 10, 2018, two robberies took place within a 45-minute period. The final robbery in the series took place on Jan. 29, 2018, at another gas station in Silver Spring.
Onyewu was arrested on Oct. 22, 2020; Sumo on Nov. 23, 2020, and Flumo on Apr. 27, 2021. Onyewu was sentenced Aug. 18, 2023, to 166 months in federal prison and 36 months of supervised release by U.S. District Judge James E. Boasberg.
Flumo and Sumo were sentenced today by U.S. District Judge Amit Mehta who also ordered three years of supervised release for each defendant.
In announcing the verdicts, U.S. Attorney Graves, Special Agent in Charge Jacobs, Chief Jones, and Chief DeVaul commended the work of those who investigated the case from the FBI’s Washington Field Office’s Violent Crime Task Force, the Montgomery Co. Police Department, the Takoma Park Police Department, the Metropolitan Police Department, the Prince George’s Co. Police Department, and the Arlington County Police Department.
They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Daniel Lenerz, Paralegal Specialists Candace Battle, Mary Downing, and Kim Hall, Legal Assistant Latoya Wade, Supervisory Litigation Technology Specialist Leif Hickling, and Litigation Technology Specialist William Henderson.
Finally, they commended the work of Assistant U.S. Attorneys Nihar Mohanty and Candice Wong of the Violence Reduction and Trafficking Offenses Section (VRTO), who investigated and prosecuted the case.
District Man Found Guilty of Aggravated Assault While Armed Following Near Fatal Car CrashRead the Press Release
WASHINGTON – Shaquille Taylor, 27, of Washington D.C., has been found guilty by a jury of the May 2022 aggravated assault of a man at the intersection of 12th Street and Massachusetts Avenue, NW, announced U.S. Attorney Matthew M. Graves, Special Agent in Charge Michael Buck of the U.S. Secret Service Uniformed Division and Acting Chief Pamela Smith of the Metropolitan Police Department. The verdict was returned late today. The Honorable Jason Park scheduled sentencing for January 16, 2024.
Taylor was found guilty at trial in the Superior Court of the District of Columbia of aggravated assault while armed, assault with a dangerous weapon, fleeing a law enforcement officer, and malicious destruction of property. The defendant was acquitted of unlawful possession of a firearm, carrying a pistol without a license, and lesser firearms offenses.
According to the government’s evidence, at approximately 2:00 AM on May 6, 2022, a United States Secret Service police officer attempted a traffic stop on a black Nissan Altima driven by the defendant in the area of Massachusetts Avenue and 17th Street NW. After partially exiting the vehicle, the defendant got back in the car and fled at a high rate of speed. At the intersection of 12th Street and Massachusetts Avenue, the defendant ran the red light and crashed the Altima into a green Jaguar being operated by another motorist, causing near fatal injuries. An analysis of computer equipment from the Altima showed that the vehicle was traveling just under 100 MPH in the seconds before the crash. A firearm was recovered from the front passenger floorboard of the vehicle driven by the defendant.
The case was investigated by the United States Secret Service Uniformed Division and the Metropolitan Police Department. It is being prosecuted by AUSAs Kathryn Bartz and Benjamin Helfand of the Major Crimes Unit of the USAO.
Department of Justice Awards More Than $1.7 Million to Support Public Safety in Eastern WashingtonRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced multiple Office of Community Oriented Policing Services (COPS Office) grant awards, totaling more than $1.7 million for the counties in Eastern Washington.
In total, COPS awarded more than $334 million to support state, local, and Tribal public safety and community justice activities. The grants announced today include funding to help law enforcement agencies hire over 1,730 new law enforcement officers across the country while also providing critical funding to support school safety and continue to advance community policing nationwide.
The grants awarded in the Eastern District of Washington are as follows:
Recipient
Grant Title
Award Amount
Washington State University
Supporting Law Enforcement Agencies in Seeking Accreditation
$133,178
Confederated Tribes of the Colville Reservation
Equipment and Training Award
$827,661
Eastern Washington University
2023 COPS Hiring Program (CHP) Awards
2 Officers – $250,000
Soap Lake
2023 COPS Hiring Program (CHP) Awards
1 Officer – $125,000
City of Kennewick
Law Enforcement Mental Health and Wellness Act Implementation Projects
$129,173
Republic School District
School Violence Prevention Program
$244,026
“Local law enforcement is a crucial component of our mission to make and keep the communities of Eastern Washington safe and strong,” said United States Attorney Vanessa R. Waldref. I am pleased these funds will be used give critical support to the work law enforcement is doing on our streets and schools. These awards will support communities, schools, and universities in both urban and rural areas in our district. I am grateful that funding also is being devoted to improving public safety in our Native American communities and elsewhere.”
“Law enforcement officers across the country are showing up every day to protect their communities in the face of unprecedented challenges,” said Attorney General Merrick B. Garland. “These grants, which support the hiring of more than 1700 new officers and make critical investments in school safety and crisis intervention efforts, will help provide local law enforcement agencies with the resources they need to keep their communities safe, support officers, and build public trust.”
Complete lists of all program award recipients, including funding amounts, can be found here.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
Delaware County Man Sentenced for Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Michael Murray, age 71, of Sidney, New York, was sentenced today to 144 months in prison for possession of child pornography.
United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office; and New York State Police (NYSP) Acting Superintendent Dominick L. Chiumento made the announcement.
As part of his guilty plea, Murray admitted that in October 2021, he possessed images and videos of child pornography on two cell phones and possessed images and videos of child pornography within two email accounts he owned and controlled. At the time of these offenses, Murray had a previous conviction in New York related to the possession of child pornography.
Chief United States District Judge Brenda K. Sannes also sentenced Murray to 10 years of supervised release, to follow his term of imprisonment. Murray was also ordered to forfeit two electronic devices that he used to commit his crimes. Murray will be required to register as a sex offender upon his release from prison.
This case was investigated by HSI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the New York State Police. Assistant United States Attorney Alexander Wentworth-Ping prosecuted this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.