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Wednesday 20 September 2023
Gary Man Sentenced to 30 Months in PrisonRead the Press Release
HAMMOND- Milton Daniels, 35 years old, of Gary, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Daniels was sentenced to 30 months in prison followed by 2 years of supervised release.
According to documents in the case, on August 5, 2022, Daniels was arrested on an outstanding warrant. At the time of his arrest, Daniels possessed a loaded 9mm semi-automatic firearm. His criminal history revealed he had a prior felony conviction for residential entry and escape, and as such is prohibited from possessing the firearm in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives in coordination with Indiana High Intensity Drug Trafficking Task Force and the Gary Police Department. This case was prosecuted by Assistant United States Attorney Michael J. Toth.
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.
Former Stoneham Police Officer Pleads Guilty to Defrauding Three LandlordsRead the Press Release
BOSTON – A former detective sergeant for the Stoneham Police Department pleaded guilty today to concealing his history of evictions and using a family member’s credit report to obtain an apartment lease and then defrauding his landlord by intentionally withholding rent payments.
Robert Kennedy, 54, of Stoneham, pleaded guilty to two counts of wire fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 4, 2024. Kennedy was arrested in March 2023 and subsequently indicted by a federal grand jury in April 2023.
Kennedy defrauded his last three landlords by providing materially false and misleading information in his rental applications to obtain the respective apartment leases. After moving in, Kennedy would intentionally withhold rent payments, despite making $141,000 - $187,000 a year from the Stoneham Police Department. As a result, Kennedy lived in the apartments rent-free by taking advantage of the slow eviction process.
Specifically, Kennedy defrauded his most recent landlord by submitting materially false and fraudulent information during the rental application process. The landlord required Kennedy to submit to a tenant screening service, which included a credit check and eviction history check. Instead of providing his own date of birth and social security number to the tenant screening service – which would likely have shown Kennedy’s history of collections, delinquent payments, defaults and evictions – Kennedy provided the date of birth and social security number of a relative who shared his first and last name. The landlord relied on the information from the fraudulently obtained tenant screening report to approve Kennedy’s rental application and give Kennedy a lease for the apartment. Additionally, Kennedy immediately and intentionally violated the terms of the lease by giving the landlord bad checks for his rent and security deposit and failing to make subsequent rent payments. Kennedy lived in the apartment for approximately four months without making rent payments and currently owes the landlord approximately $14,000 in overdue rent.
The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made announcement today. Valuable assistance was provided by the Stoneham Police Department. Assistant U.S. Attorneys Elysa Q. Wan and Dustin Chao of the Public Corruption & Special Prosecutions Unit are prosecuting the case.
Former Lieutenant for the Newport News Fire Department Sentenced for Coercion and Enticement of a Child and Receipt of Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced yesterday to over 33 years in prison for coercion and enticement of a child and receipt of child sexual abuse material (CSAM).
According to court documents, in February 2022, Christopher Scott Jones, 43, used the internet to entice and coerce a minor to engage in sexual activity. During the investigation of this offense, the FBI discovered several children who may have been victims of Jones’ conduct. The minors were forensically interviewed and three made disclosures of sexually explicit contact with Jones. One minor disclosed Jones engaging with them over the course of nine months in physical and sexual conduct, to include inappropriate sexual contact and the mutual exchange of sexually explicit images to one another. Forensic examinations of his devices and lawful searches of his accounts confirmed the illicit relationships. In addition, in July 2022, Jones traveled to meet an undercover individual posing as a 12-year-old for sex.
On May 18, Jones pleaded guilty to using a communication facility to knowingly persuade, induce, entice, and coerce a minor to engage in sexual activity. Jones also pleaded guilty to receiving child pornography of his victim.Jones was formerly a lieutenant with the Newport News Fire Department.
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 sentencing by U.S. District Judge Jamar K. Walker.
James City County Police Department assisted in this investigation.
Assistant U.S. Attorney Peter Osyf prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-32.
Former Erie Resident Sentenced to 30 Months in Jail for Violating Federal Firearm LawsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 30 months in jail on his conviction of violating federal firearms laws, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Dustin Robert Patterson, 30.
According to information presented to the court, in and around February 2022, Patterson possessed a firearm while being a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm. In addition, the firearm was possessed while Patterson was subject to a Protection From Abuse order.
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.
Prior to imposing sentence, Judge Baxter noted Patterson’s lengthy criminal history which included crimes of violence.Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Marshal’s Service for the investigation leading to the successful prosecution of Patterson.
Fayette County Man Sentenced to 48 Months for Possession of a Firearm by a Convicted FelonRead the Press Release
FRANKFORT, Ky. — A Lexington man, Cleotis Wade, 50, was sentenced to 48 months in federal prison on Tuesday, by U.S. District Judge Gregory VanTatenhove, for possession of a firearm by a convicted felon.
According to his plea agreement, on May 29, 2022, law enforcement encountered Wade after being dispatched to an apartment complex in Lexington. According to a witness, a man matching Wade’s description had attempted to enter her apartment, then retrieved a firearm from his vehicle and fired one or more shots into the air. Law enforcement located Wade outside the complex in a car, observed a firearm behind the passenger seat, and found a fired shell casing outside the driver side door.
Wade had multiple prior felony convictions in Fayette Circuit Court, including for heroin trafficking in 2014 and burglary in 2011. As a convicted felon, Wade was prohibited from possessing a firearm.
Wade pleaded guilty to the current charge in March 2023.
Under federal law, Wade must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by ATF and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cindy Rieker.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Crownpoint Man Sentenced to 12 Years in Prison for Firearm OffensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Derrick Cook was sentenced to 12 years in prison. Cook, 28, of Crownpoint, and an enrolled member of the Navajo Nation, pled guilty to assault with a dangerous weapon and using and carrying a firearm during and in relation to a crime of violence on April 11, 2023.
According to court documents, on Aug. 27, 2022, Cook got into an argument with John Doe 1 and his girlfriend outside the Crownpoint Trading convenience store. When an employee told Cook to leave, he fired multiple shots at the building from the back of a car. Later that evening, John Doe 1 and John Doe 2 confronted Cook at his home. A fight began and Cook shot both men. Doe 1 was shot in the left side of his chest/abdomen, which resulted in a collapsed lung. He was intubated to assist his breathing, given a chest tube to treat the collapsed lung and a blood transfusion, and underwent surgery to repair his injuries. Doe 2 was shot in the right elbow resulting in a radial fracture.
Upon his release from prison, Cook will be subject to 3 years of supervised release.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the Navajo Department of Criminal Investigations. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case.
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Conway Man and Texas Man Sentenced to Multi-Year Terms in Federal Prison for Drug Trafficking and Related ActivityRead the Press Release
FLORENCE, SOUTH CAROLINA — Martine Garcia, 32, of Conway, was sentenced to more than 3 years in federal prison after pleading guilty to possession with intent to distribute cocaine and methamphetamine. Ulisses Jair Perez Guillen, 20, of Forth Worth, Texas, was sentenced to ten years in prison after pleading guilty to possession with intent to distribute cocaine and possessing a firearm in furtherance of drug trafficking.
Evidence presented to the court showed that, on July 7, 2022, law enforcement executed a search warrant at a home in Conway from which Garcia had previously sold methamphetamine. Garcia and Perez Guillen were located inside the home, where law enforcement found approximately 450 grams of methamphetamine and 700 grams of cocaine. Inside a car Perez Guillen had driven to the home, law enforcement found nearly a kilogram of cocaine and a 9mm SCCY handgun. Further investigation revealed a hidden compartment in the car, which contained approximately 3.5 kilograms of additional suspected cocaine.
United States District Judge Joseph Dawson, II, sentenced Garcia to 41 months in prison, with 4 years of court-ordered supervision to follow. Judge Dawson sentenced Perez Guillen to 120 months in prison, with 5 years of court-ordered supervision to follow. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by Horry County Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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Coffee County Man and His Brother Found Guilty of Carrying Out a Murder-for-Hire PlotRead the Press Release
MONTGOMERY, ALABAMA – Today, a federal jury in Montgomery, Alabama, convicted two men for their roles in a murder-for-hire conspiracy that resulted in the November 27, 2017, death of an Enterprise woman.
According to court documents and evidence presented during the six-day trial, in 2017, Jason Starr, 50, from Coffee Springs, Alabama, went through a divorce from his former wife. Ultimately, a judge awarded a significant portion of Jason Starr’s income to his ex-wife. Shortly after the divorce, from September 2017 to November 2017, Jason Starr sent approximately $2,600 to his brother, Darin Starr, 54, a resident of Lakehills, Texas. Cell phone records for Darin Starr showed that he traveled from Texas to Coffee County just before Thanksgiving in 2017 and, on multiple occasions, was very near the home of his brother’s ex-wife. Around midnight on November 27, 2017, Darin Starr’s phone was turned off. Approximately seven hours later, Darin Starr shot and killed his brother’s ex-wife in her driveway as she was leaving for work. Darin Starr turned his phone back on around 8:00 a.m. when he was on I-10 heading back to Texas.
In rendering its verdict, the jury determined that the money sent by Jason Starr to his brother was payment for the murder of his ex-wife.
A sentencing hearing for Jason and Darin Starr will be held in the coming months. At that hearing, they will each face a mandatory sentence of life in prison. There is no parole in the federal system.
“The tragedy endured by the victim’s family is unthinkable,” stated United States Attorney Sandra J. Stewart. “I am grateful for the hard work of all the investigating agencies in this case. Their efforts resulted in bringing Jason and Darin Starr to justice.”
"The FBI and our state and local partners worked tirelessly to ensure justice was served,” stated FBI Special Agent in Charge Paul Brown. “We thank the jury for their work on this case."
The FBI, the Coffee County Sheriff’s Office, the Alabama Department of Forensic Sciences, and the Alabama Law Enforcement Agency investigated the case, with Assistant United States Attorneys Joshua J. Wendell and B. Chelsea Phillips prosecuting.
Chickasha Man Sentenced to Serve a Decade in Federal Prison for Distributing a Fentanyl Pill that Resulted in an OverdoseRead the Press Release
Case Demonstrates Importance of Drug Enforcement Administration’s “One Pill Can Kill” Campaign
OKLAHOMA CITY – Yesterday, MARCUS LAMAR RICHARDSON, 23, of Chickasha, was sentenced to serve 120 months in federal prison for distribution of fentanyl, announced U.S. Attorney Robert J. Troester.
On November 15, 2022, Richardson was charged by Superseding Information with distribution of fentanyl. According to public record, on or about December 30, 2021, Richardson distributed a pill containing fentanyl to co-defendant Brianna Rechell Hugar, 24, to deliver to another person. That person went on to overdose and nearly die as a result of the fentanyl. The victim survived only because of life saving measures by Chickasha Police.
On December 1, 2022, Richardson pleaded guilty to the Superseding Information charge.
“It only takes one deadly fentanyl-laced pill to cause a fatal overdose,” said U.S. Attorney Robert J. Troester. “Far too many have died due to the flood of fentanyl in the United States and Oklahoma. We stand with and support our DEA partners to do all we can to stop the illicit flow of fentanyl where we can and hold those who dispense this deadly poison accountable.”
“This sentence sends a message to drug traffickers who feed the drug addicted and line the pockets of criminal organizations,” said Eduardo A. Chavez, Special Agent in Charge of the Dallas Field Division. “Mr. Richardson is being held accountable for the poison that found its way into our neighborhoods by his hand. Whether it is one pill of fentanyl or 1,000 pills, the DEA will never cease its efforts to rid these drugs from the streets of Oklahoma.”
At the sentencing hearing on Tuesday, U.S. District Judge Joe Heaton sentenced Richardson to 10 years in prison. In announcing the sentence, Judge Heaton noted the seriousness of the offense—particularly the near fatal consequence of his drug distribution—as well as the extent of the threat to the public posed by fentanyl, and thus, by extension, Richardson’s conduct. Judge Heaton noted that it took only half a pill for the victim to overdose, while also observing that Richardson was distributing significant quantities of this dangerous drug.
On August 23, 2023, Hugar was sentenced to serve 24 months in federal prison after pleading guilty to distribution of fentanyl.
This case demonstrates the importance of the “One Pill Can Kill” campaign by the Drug Enforcement Administration. More information about “One Pill Can Kill” can be found at https://www.dea.gov/onepill.
This case is a result of an investigation by the Drug Enforcement Administration and the Grady’s County Sheriff’s Office. Assistant U.S. Attorneys David McCrary and Elizabeth Joynes prosecuted the case.
Charlotte Behavioral Health Services Provider Is Indicted for Defrauding the South Carolina Medicaid Program and COVID-19 Relief FraudRead the Press Release
CHARLOTTE, N.C. – A Charlotte behavioral health services provider has been indicted on federal charges for allegedly defrauding the South Carolina Medicaid Program (SC Medicaid) and falsely obtaining COVID-19 relief funds, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
The 16-count federal indictment charges Ashley Nicole Cross, 41, of Charlotte, with healthcare fraud, making false writings relating to a healthcare matter, making false statements relating to a healthcare matter, promotion money laundering, wire fraud, wire fraud conspiracy, and wire fraud affecting a financial institution.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
The Healthcare Fraud Scheme
The federal indictment alleges that Cross owned and operated Odyssey Health Group (OHG), a Charlotte-based company, that was enrolled with SC Medicaid and provided outpatient behavioral health services to eligible Medicaid beneficiaries in South Carolina. From 2016 to 2021, Cross carried out an extensive healthcare fraud scheme involving the fraudulent submissions of fraudulent reimbursement claims to SC Medicaid and its contracted managed care organizations for rehabilitative behavioral health services that were never provided. The indictment alleges that Cross paid for the personal identifying information (PII) of qualified SC Medicaid beneficiaries. Cross then allegedly used the PII to file fraudulent reimbursement claims totaling at least $400,000. To further the scheme and to give the appearance that OHG’s fraudulent claims were legitimate, Cross allegedly instructed OHG employees to create fictitious patient files and clinical service notes in the names of beneficiaries.
According to allegations in the indictment, in September 2019, Cross was informed of an audit into OHG’s claims. The indictment alleges that Cross submitted fictitious patient medical records and made false statements to the auditor in order to cover up the fraud.
The indictment also alleges that Cross engaged in money laundering and used some of the fraudulent proceeds to promote the scheme by paying for Medicaid beneficiary names and PII.
The COVID-19 Fraud Scheme
According to allegations in the indictment, from April 3, 2020, to May 14, 2022, Cross executed a scheme to obtain fraudulent Paycheck Protection Program (PPP) loans on behalf of OHG and Gucci International Inc. (Gucci), a purported event planning business owned by a co-conspirator. To obtain the PPP loans, Cross submitted loan application and supporting documents that contained false statements regarding OHG’s and Gucci’s payroll expenses, number of employees, and other misrepresentations. As a result of the fraudulent PPP loan applications and supporting documents, Cross and her coconspirator obtained more than $120,000 in COVID-19 relief funds for OHG and Gucci. At the time of Gucci’s loan application, the company’s owner was under indictment for a federal offense.
The charges against Cross are allegations. A defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
A summons has been issued and Cross will appear in federal court for her initial appearance. The healthcare fraud offense carries a maximum penalty of 10 years in prison for each count in the indictment. The offense of making false writings and false statements relating to a healthcare matter carries a maximum prison sentence of five years. The promotion money laundering and wire fraud charges each carry a maximum statutory sentence of 20 years in prison per count. And the charge of wire fraud conspiracy affecting a financial institution carries a maximum penalty of 30 years in prison.
The FBI investigated the case with the substantial assistance of the South Carolina Attorney General’s Office, Medicaid Fraud Investigations.
Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Charleston County Man Sentenced to 5 Years in Federal Prison for Wire FraudRead the Press Release
CHARLESTON, SOUTH CAROLINA — Amir Golestan, 40, of Charleston, was sentenced to 5 years in federal prison after pleading guilty to 20 counts of wire fraud.
Evidence presented to the court showed that Golestan operated a company, Micfo, LLC, that represented itself as providing hosting services and providing customers with technologies and services needed for a website or webpage to be viewed on the Internet. As part of its business, Micfo applied and registered for IPv4 addresses through the American Registry of Internet Numbers (“ARIN”).
IPv4 addresses are numerical labels assigned to each device connected to a computer network that uses the Internet for communication. ARIN is a nonprofit organization that administers IP address rights, allocations, and transfers in the United States, Canada, and parts of the Caribbean. To obtain an IP address allocation from ARIN, an entity has to provide a need-based justification. As ARIN’s pool of IPv4 addresses has depleted, a secondary market has developed where prices for a single IPv4 address have increased dramatically.
After Micfo no longer qualified to procure additional IPv4 addresses based on ARIN’s policies and procedures, Golestan created fake companies, which he referred to as “Channel Partners,” to procure them. Through the Channel Partners, Golestan made fraudulent representations to ARIN, and ARIN relied on those misrepresentations in granting the Channel Partners rights to IPv4 addresses.
Golestan made over $3 million selling rights to those IPv4 addresses on the secondary market before his fraudulent scheme was caught.
“Like many corporate wrongdoers, Amir Golestan tried to obscure his criminal conduct by using fake companies and complex transactions,” said U.S. Attorney Adair F. Boroughs. “The U.S. Attorney’s Office stands ready to unwind these schemes and prosecute those who exploit critical technologies to line their own pockets. We are grateful to the FBI and to ARIN for their assistance in holding Golestan accountable.”
“Golestan’s criminal activities caused significant harm to his customers who put their trust in his hands,” said Paul “Reid” Davis, Assistant Special Agent in Charge of the FBI Columbia Field Office. “His betrayal of that trust is being met by the weight of justice with this sentence. The FBI, along with its law enforcement partners, are committed to investigating and dismantling fraudulent schemes designed to take advantage of critical technologies.”
United States District Judge Richard M. Gergel sentenced Golestan to 60 months in prison, to be followed by a 2-year term of court-ordered supervision. There is no parole in the federal system. The court also ordered restitution be paid to ARIN in the amount of $76,978.25.
This case was investigated by the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Amy F. Bower is prosecuting the case.
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Central Illinois Man Pleads Guilty to Attempted Arson of ClinicRead the Press Release
URBANA, Ill. – A Prophetstown, Illinois, man, Philip J. Buyno, 73, pleaded guilty on September 19, 2023, to attempting to use fire to damage a building used in interstate commerce. Sentencing for Buyno is scheduled for February 5, 2024, at the U.S. Federal Courthouse in Urbana, Illinois.
In court before U.S. Magistrate Judge Eric I. Long, Buyno admitted that, on May 20, 2023, he brought several containers filled with gasoline with him and used his car to breach the front entrance to a commercial building at 600 N. Logan Avenue in Danville, Illinois, for the purpose of burning it down before it could be used as a reproductive health clinic. During the hearing, the government stated that Danville police officers responded to an alarm at 600 N. Logan Avenue around 4:30 a.m. early that Saturday morning. When officers arrived, they found Buyno stuck inside a maroon Volkswagen Passat that he had backed into the entrance of the building, which was under renovation. During a search of the car, FBI Agents found bottles containing gasoline, a hatchet, road flares, multiple old tires, and a pack of matches. Agents also found that Buyno had fortified the trunk of the Passat with 4x4 wooden beams.
Buyno has been in the custody of the U.S. Marshals Service since May 2023, where he remains pending sentencing.
Buyno faces statutory penalties of a minimum five years up to twenty years in prison, a fine of up to $250,000, three years of supervised release, and restitution for the damage caused to the building.
The charges are the result of an investigation by the Federal Bureau of Investigation, Springfield Field Office, and the Danville Police Department. Supervisory Assistant U.S. Attorney Eugene L. Miller is representing the government in the prosecution.
Christopher J. Wilson, United States Attorney - Eastern District of Oklahoma, Will Be Available to the Press Regarding Scheduled Anti-Terrorism Advisory Council (Atac) Meeting & Training EventRead the Press Release
MUSKOGEE, OKLAHOMA - Christopher J. Wilson, United States Attorney for the Eastern District of Oklahoma, will be available to the press regarding a scheduled Anti-Terrorism Advisory Council (ATAC) meeting & training event for law enforcement officers, security professionals, and school personnel who might find themselves in a first-responder role during an active-shooter event within their respective community or place of work.
WHEN
9:30 am
Thursday, September 21, 2023WHERE
Martin Luther King Jr. Community Center
300 W Martin Luther King St.
Muskogee, OK 74401OPEN PRESS
NOTE: Press should arrive 30 minutes prior to appointment time to allow for camera set-up, etc. Press should also call the contact number (918) 684-5100 before making an appointment to confirm parameters of this press availability event.
Business Partner of Convicted Art Dealer Inigo Philbrick Sentenced to 20 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ROBERT NEWLAND, the business partner of convicted art dealer INIGO PHILBRICK, was sentenced today to 20 months in prison in connection with a multi-year scheme to defraud various individuals and entities in order to finance PHILBRICK’s art business. U.S. District Judge Sydney H. Stein imposed today’s sentence.
U.S. Attorney Damian Williams said: “Robert Newland helped Inigo Philbrick commit one of the largest fraud schemes ever perpetrated in the art market. By taking advantage of the lack of transparency in the art market, Philbrick and Newland defrauded art collectors, investors, and lenders by lying about the true ownership interests of artworks and selling or pledging as collateral over 100% of numerous artworks. As the financial adviser, Newland appeared to give legitimacy to Philbrick’s art business, but in reality, he perpetuated the fraud. Today’s sentence sends a message to anyone who facilitates fraud in the art market that they will face serious consequences.”
According to the allegations in the Complaint, Indictment, and statements made in court:
From approximately 2016 through 2019, to finance his art business, PHILBRICK engaged in a scheme to defraud multiple individuals and entities in the art market located in the New York metropolitan area and abroad (the “Fraud Scheme”). NEWLAND was PHILBRICK’s business partner and financial adviser and conspired with PHILBRICK to perpetrate the Fraud Scheme. NEWLAND and PHILBRICK made material misrepresentations and omissions to art collectors, investors, and lenders to access valuable art and obtain sales proceeds, funding, and loans. NEWLAND and PHILBRICK knowingly misrepresented the ownership of certain artworks, for example, by selling a total of more than 100% ownership in an artwork to multiple individuals and entities without their knowledge and by selling artworks and/or using artworks as collateral on loans without the knowledge of co-owners and without disclosing the ownership interests of third parties to buyers and lenders.
Over the years, PHILBRICK obtained over $86 million in loans and sale proceeds in connection with the Fraud Scheme. NEWLAND and PHILBRICK made fraudulent misrepresentations about artworks including, among others, a 1982 painting by the artist Jean-Michel Basquiat titled “Humidity,” a 2010 untitled painting by the artist Christopher Wool, and an untitled 2012 painting by the artist Rudolf Stingel depicting the artist Pablo Picasso.
In the fall of 2019, NEWLAND and PHILBRICK’s Fraud Scheme collapsed as various investors and lenders learned about the material misrepresentations and omissions PHILBRICK and NEWLAND had made.
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In addition to the prison term, NEWLAND, 46, of the United Kingdom, was sentenced to two years of supervised release, during which time he must complete 200 hours of community service per year. NEWLAND was further ordered to pay a forfeiture of $76,000 and the following property: (i) Personal Distance A, painting by Carroll Dunham, 96.5 x 124.5 cm (49 x 38 in.); (ii) Untitled 2016 painting, oil and etching on paper, by Christopher Wool, image size 19 x 15 cm (7.5 x 6 in), paper size 41.3 x 35.6 cm. (16.24 x 14 in.); (iii) Untitled 2007 print, Epson UltraChrome inkjet on linen, by Wade Guyton, 213.36 x 175.26 cm. (83.21 x 68.35 in.); and (iv) a Jean Prouvé desk H 72 x L 160 x P 71.5 cm. In addition, NEWLAND was ordered to pay restitution to victims in the amount of $67,489,808.
PHILBRICK, 35, a U.S. citizen formerly residing in the United Kingdom, pled guilty to one count of wire fraud on November 18, 2021. On May 23, 2022, U.S. District Judge Sidney L. Stein sentenced PHILBRICK to seven years in prison and two years of supervised release. PHILBRICK was further ordered to pay forfeiture of $86,672,790 and restitution of $82,592,367.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation’s Art Crime Team.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Jessica K. Feinstein and Cecilia E. Vogel are in charge of the prosecution.
Browning man admits assault with a gun on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man accused of firing a gun into an occupied house during a dispute admitted to an assault crime today, U.S. Attorney Jesse Laslovich said.
Gerald Anthony Bullchild, 47, pleaded guilty to assault with a dangerous weapon. Bullchild faces a maximum of 10 years imprisonment, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for Feb. 29, 2024. Bullchild was released on conditions pending further proceedings.
In court documents, the government alleged that on March 28, 2021, Bullchild drove to the home of a former girlfriend, identified as Jane Doe, to speak with their minor child. When the child refused to go with Bullchild, Bullchild started yelling and honking at Jane Doe. Jane Doe went outside to speak with Bullchild, where he continued yelling and called her profane names. Bullchild left and returned later, yelling and honking. Jane Doe refused to leave the home and Bullchild continued yelling and honking. Finally, as Bullchild started to leave, he fired a pistol round into Jane Doe’s living room. The bullet traveled through the front wall of the house and lodged in the couch, where it bumped against the leg of a child on the couch. Law enforcement recovered a spent .45-caliber shell casing and an empty .45-caliber magazine from the vehicle. The round recovered from the couch was a .45-caliber bullet.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case. The Bureau of Indian Affairs and Blackfeet Law Enforcement Services conducted the investigation.
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Broward County Resident Sentenced to 110 Months in Prison for Conspiracy in MJ Capital Funding, LLC Ponzi SchemeRead the Press Release
MIAMI - Yesterday, Pavel Ramon Ruiz Hernandez, a/k/a “Pavel Ruiz,” age 30, of Broward County, Florida, was sentenced to 110 months in prison, followed by three years of supervised release, for conspiring to commit wire fraud in connection with an investment Ponzi fraud scheme associated with MJ Capital Funding, LLC (“MJ Capital Funding”).
According to court records, beginning in March 2021, and continuing through on or about August 12, 2021, Ruiz Hernandez conspired with others to fraudulently solicit money from investors purportedly to fund MJ Capital Funding’s MCAs. Ruiz Hernandez and his co-conspirators recruited other individuals to solicit investors to invest in MJ Capital Funding’s investment offering and paid these individuals commissions, typically 10% of the funds raised. MJ Capital Funding was a Florida limited liability company with its listed place of business in Pompano Beach, Florida. MJ Capital Funding was purportedly engaged in the business of providing merchant cash advances, or MCAs, a type of short-term financing typically used by small and medium-sized businesses.
Court records also state that Ruiz Hernandez and his co-conspirators, directly and indirectly, made false statements and fraudulent representations to investors concerning the nature of the MJ Capital Funding investment and the use of investor funds. Ruiz Hernandez and others falsely told investors that their money would be used to fund MCAs and that investor returns would be paid from the profits of MJ Capital Funding’s MCA business. However, MJ Capital Funding made few MCAs and failed to earn anywhere near the profits it needed to pay the investor returns and principal promised to investors. As a result, Ruiz Hernandez and his co-conspirators paid investor returns by running a large Ponzi fraud scheme, paying existing investors using new investor funds while misappropriating millions of investor dollars for their own personal use and benefit. In his plea, Ruiz Hernandez admitted that he and his co-conspirators falsely and fraudulently obtained at least approximately $42,942,000 dollars from investors.
U.S. Attorney Markenzy Lapointe of the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri, FBI, Miami Field Office, made the announcement.
This case is being investigated by FBI in Miami. The case was prosecuted by Assistant U.S. Attorney Eric E. Morales of the Southern District of Florida. Assistant U.S. Attorney Marx P. Calderón handled asset forfeiture.
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 on http://pacer.flsd.uscourts.gov under case number 21-cr-20185.
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Bronx Man Sentenced to Life in Prison for the 2006 Murder of Kelly Diaz and Other CrimesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that EDWIN CORTORREAL, a/k/a “Crazy Ed,” was sentenced by U.S. District Judge Valerie E. Caproni to life in prison for his participation in a violent robbery crew known as the “Hot Boys” and the murder of Kelly Diaz in 2006 in the Washington Heights neighborhood of Manhattan. CORTORREAL was convicted following a five-day trial before Judge Caproni on April 26, 2023.
U.S. Attorney Damian Williams said: “Edwin Cortorreal was a member of a violent robbery crew that terrorized the Washington Heights neighborhood in Manhattan. But simply robbing his victims was not enough for Cortorreal. He was willing to kill them to make sure he got away with his crimes. To that end, in 2006, Cortorreal executed Kelly Diaz in front of Diaz’s wife. But thanks to the hard work of our law enforcement partners and the prosecutors of this Office, Cortorreal did not get away with this crime.”
According to the evidence presented in court during the trial:
From at least 2006 to in or about 2013, a violent robbery crew known as the “Hot Boys” committed countless burglaries and robberies and sold narcotics in the Washington Heights area. EDWIN CORTORREAL was a trusted associate of the Hot Boys. In 2006, CORTORREAL and four other members and associates of the Hot Boys broke into Kelly Diaz’s apartment in the middle of the night. During the course of the robbery, CORTORREAL and his co-conspirators duct-taped Diaz to a chair and threw his wife to the ground. As they were leaving, CORTORREAL came back and shot Diaz point-blank in the head, killing him instantly as his wife looked on. Less than a year later, CORTORREAL planned to commit another armed robbery, during which he plotted to kill the victims to avoid leaving behind any witnesses.
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CORTORREAL, 36, of the Dominican Republic, was found guilty of one count of conspiracy to commit racketeering, one count of murder in aid of racketeering, and one count of the use of firearm resulting in death.
Mr. Williams thanked the New York Healthcare Fraud Unit of the Federal Bureau of Investigation, the New York City Police Department (“NYPD”), and NYPD Task force officers assigned to the U.S. Attorney’s Office for their work on the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Mathew Andrews, David Denton, Courtney Heavey, Adam Hobson, Emily Johnson, Ni Qian, Justin Rodriguez, and Hagan Scotten are in charge of the prosecution, with the assistance of paralegal specialist Mia Vuckovich.
Bronx Gang Member Convicted of Racketeering, Drug Trafficking, and Firearms OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against YELTSIN BELTRAN, a/k/a “Yells,” on three counts in a Superseding Indictment, including charges of racketeering conspiracy, narcotics conspiracy, and a firearms offense. BELTRAN will be sentenced at a later date by U.S. District Judge Katherine Polk Failla, who presided over the eight-day trial.
U.S. Attorney Damian Williams said: “Yeltsin Beltran lived a dangerous lifestyle as a member of the YBMG street gang. Beltran trafficked dangerous drugs and was involved in reckless gunplay in connection with his membership in the gang. Today’s conviction reaffirms this Office’s commitment to prosecute those who choose to participate in gangs that threaten the wellbeing and safety of our community.”
According to the Superseding Indictment and the evidence at trial:
Between in or about 2006 and in or about 2021, BELTRAN was a member of the Young Bronx Money Getters (“YBMG”), an armed gang that trafficked large quantities of heroin throughout the Northeast including in the Bronx, Long Island, upstate New York, and Connecticut. BELTRAN also used, carried, and possessed firearms, at least one of which was discharged in connection with the narcotics conspiracy, including during an April 24, 2017, shooting at an after-hours club, in which BELTRAN shot at another person and struck a bystander, and in an April 19, 2019, incident in which BELTRAN shot himself in the foot while inside a crowded nightclub.
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BELTRAN, 31, of the Bronx, New York, was convicted on three counts: (i) conspiring to participate in the YBMG racketeering enterprise, which carries a maximum term of life in prison; (ii) conspiring to distribute and possess with intent to distribute heroin, cocaine, and marijuana, which carries a mandatory minimum term of 10 years in prison and a maximum term of life in prison; and (iii) using and carrying firearms during, and possessing firearms in furtherance of, the narcotics conspiracy, which carries a mandatory consecutive term of 10 years in prison and a maximum term of life in prison. BELTRAN was acquitted of a December 24, 2017, shooting in connection with the racketeering enterprise and a related firearms count.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Drug Enforcement Administration’s ("DEA") New York Drug Enforcement Task Force that comprises agents and officers of the DEA, New York City Police Department, and the New York State Police.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Frank Balsamello, Christopher Brumwell, Brandon Harper, Benjamin Gianforti, and Mathew Andrews, with the assistance of Paralegal Specialists Chanel-Ashley Foster and William Coleman, are in charge of the prosecution.
Armed Fentanyl Dealer Sentenced to Ten Years in PrisonRead the Press Release
PROVIDENCE – A Pawtucket man who previously admitted to a federal judge that he was in possession of more than two kilos of fentanyl, a loaded Glock handgun, and nearly $80,000 in cash when he was arrested in October 2019 during a Pawtucket Police Department Project Safe Neighborhoods investigation was sentenced today to ten years in federal prison, announced United States Attorney Zachary A. Cunha.
Adrian Montalvo, 36, pleaded guilty in April in federal court to charges of possession with intent to distribute 40 grams or more of fentanyl and possession of a firearm in furtherance of a drug trafficking crime. He was sentenced today by U.S. District Court Judge Mary S. McElroy to ten years of incarceration to be followed by four years of supervised release.
According to information presented to the court, members of the Pawtucket Police Department’s Special Squad /Narcotics Unit developed information that Montalvo, previously convicted multiple times in state courts for trafficking narcotics, was selling large quantities of fentanyl within the city of Pawtucket. Following an investigation that included surveillance of Montalvo and his residence, Pawtucket Police requested and received a court-authorized search warrant for his residence. A search of Montalvo’s residence on October 1, 2019, yielded 2,118.35 grams of fentanyl; $79,106 in cash; a Glock 9mm semi-automatic pistol with an obliterated serial number; and items used in the preparation and packaging of fentanyl for distribution.
In addition to the term of incarceration imposed by the court, the court also ordered Montalvo to forfeit the cash and firearm seized by law enforcement, as well as proceeds realized by his drug trafficking activity, including a 2017 Jeep Wrangler, three widescreen televisions, miscellaneous jewelry, and a projector system.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
This case was investigated and prosecuted in federal court as 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. In 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Albuquerque Man Sentenced to 10 Years in Prison for Drug Trafficking and Federal Firearms OffensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Eric Castañeda, Acting Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division, announced today that Leonardo Garcia was sentenced to 10 years in prison. Garcia, 39, of Albuquerque, pled guilty to possession with intent to distribute 500 grams and more of a mixture and substance containing cocaine and using and carrying a firearm during and in relation to a drug trafficking crime on March 17, 2023.
According to court records, on the morning of September 8, 2021, DEA agents arrived at Garcia’s residence ahead of executing a search warrant on the premises. While waiting, agents observed Garcia conducting multiple transactions out of his residence. When agents executed the search warrant, Garcia was arrested without incident and a search of his residence revealed 3,594.3 grams of cocaine and multiple firearms. In his plea agreement, Garcia admitted that he possessed the cocaine with the intent of distributing it and the firearms in furtherance of his intent to distribute the cocaine.
Upon his release from prison, Garcia will be subject to 5 years of supervised release.
The Drug Enforcement Administration investigated this case. Assistant U.S. Attorney Joseph M. Spindle is prosecuting the case.
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Whitley County Man Sentenced to 162 Months for Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky. — A Whitley County man, Michael Andrew Nakonechny, 41, was sentenced to 162 months in federal prison on Tuesday, by U.S. District Judge Claria Horn Boom, for possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking offense.
According to his plea agreement, on August 5, 2022, law enforcement in Whitley County located a backpack that Nakonechny possessed and contained over 50 grams of methamphetamine. Nakonechny had received the drugs from his supplier and intended to distribute them. Law enforcement also found a loaded firearm inside the backpack. Nakonechny possessed the firearm to further his drug trafficking activity.
Nakonechny pleaded guilty to the charges in May 2023.
Under federal law, Nakonechny must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for four years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Phillip J. Burnett, Commissioner of the Kentucky State Police; and Rusty Hedrick, Chief of the Corbin Police Department, jointly announced the sentence.
The investigation was conducted by ATF, the KSP, and the Corbin Police Department.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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West Virginia man sentenced for federal drug and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Erik Lee Kurz, age 29, of Augusta, West Virginia, was sentenced September 18, 2023 to 5 years in federal prison for heroin, fentanyl, and firearms charges.
According to court documents and statements made in court, Kurz, also known as “Edub,’ worked with others to sell heroin and fentanyl from Baltimore, Maryland to Hampshire and Mineral Counties in West Virginia. Investigators found several firearms and ammunition in his vehicle and found fentanyl and additional firearms in his home.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
West Virginia man charged with wire fraud in elder justice caseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joseph M. Beach, age 54, of Inwood, West Virginia, has been indicted for misappropriation by a fiduciary, wire fraud, theft of government property, false written statement, and false statement to federal agent.
According to court documents, Beach was appointed as fiduciary for his father in late 2017. Beach’s father is under the care of a veterans’ care facility and receives monthly benefits. As the fiduciary, Beach received his father’s veteran’s disability, retirement, and social security payments and used them for his own benefit.
Assistant U.S. Attorney Eleanor Hurney is prosecuting the case on behalf of the government.
The Veterans Affairs Office of Inspector General, the U.S. Office of Personnel Management, and the Social Security Administration investigated.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
West Virginia man admits to obstructing Tree of Life trialRead the Press Release
WHEELING, WEST VIRGINIA – Hardy Carroll Lloyd, age 45, of Follansbee, West Virginia, pled guilty today to obstruction of the due administration of justice.
According to court documents and statements made in court, Lloyd admitted to making online threats to jurors and witnesses involved in the federal hate crimes trial in Pittsburgh, Pennsylvania, of Robert Bowers, the Tree of Life Synagogue mass shooter. Lloyd, a self-proclaimed “reverend” of a white supremacy movement, distributed threatening social media posts, website comments, and emails during the trial. As part of his plea agreement, Lloyd stipulated that he intentionally selected the jury and government witnesses in the Bowers trial as the targets of his offense due to the actual or perceived Jewish religion of the witnesses and the Bowers victims.
“Hardy Lloyd attempted to obstruct the federal hate crimes trial of the deadliest antisemitic attack in American history,” said Attorney General Merrick B. Garland. “His guilty plea underscores that anyone who attempts to obstruct a federal trial by threatening or intimidating jurors or witnesses will be met with the full force of the Justice Department.”
“Hardy Lloyd’s crime was motivated by hate and there is no place for that in our society,” said United States Attorney William Ihlenfeld. “He tried to undermine our system of justice by targeting the Jewish community and now will pay a steep price for his abhorrent conduct.”
“Mr. Lloyd thought he could get away with making threats against members of a jury to influence their decisions and now he’ll be accountable for his actions,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Mr. Lloyd’s words go far beyond speech that is protected by the constitution and cannot be tolerated. The FBI will vigorously pursue those like Mr. Lloyd who threaten and intimidate others based upon biases and personal differences.”
If the agreement is accepted by the court, Lloyd will be sentenced to 78 months in prison, which is expected to be the highest end of the sentencing range calculated under the U.S. Sentencing Guidelines.
First Assistant U.S. Attorney Randolph Bernard and Assistant U.S. Attorney Jarod Douglas are prosecuting the case on behalf of the government.
The Federal Bureau of Investigation investigated.
West Virginia Man Admits to Obstructing Tree of Life TrialRead the Press Release
Hardy Carroll Lloyd, 45, of Follansbee, West Virginia, pleaded guilty today to obstruction of the due administration of justice.
“Hardy Lloyd attempted to obstruct the federal hate crimes trial of the deadliest antisemitic attack in American history,” said Attorney General Merrick B. Garland. “His guilty plea underscores that anyone who attempts to obstruct a federal trial by threatening or intimidating jurors or witnesses will be met with the full force of the Justice Department.”
“It is absolutely reprehensible that the defendant threatened witnesses and jurors in the Tree of Life case, a tragedy that claimed innocent lives and emotionally scarred many in the Jewish community,” said FBI Director Christopher Wray. “The FBI will not tolerate the intimidation of citizens participating in our criminal justice system, and we will work with our partners to hold legally accountable anyone who threatens or carries out acts of violence against them.”
According to court documents and statements made in court, Lloyd admitted to making online threats to jurors and witnesses involved in the federal hate crimes trial in Pittsburgh of Robert Bowers, the Tree of Life Synagogue mass shooter. Lloyd, a self-proclaimed “reverend” of a white supremacy movement, distributed threatening social media posts, website comments, and emails during the trial. As part of his plea agreement, Lloyd stipulated that he intentionally selected the jury and government witnesses in the Bowers trial as the targets of his offense due to the actual or perceived Jewish religion of the witnesses and the Bowers victims.
If the agreement is accepted by the court, Lloyd will be sentenced to 78 months in prison, which is expected to be the highest end of the sentencing range calculated under the U.S. Sentencing Guidelines.
The FBI is investigating the case.
First Assistant U.S. Attorney Randolph Bernard and Assistant U.S. Attorney Jarod Douglas for the Northern District of West Virginia are prosecuting the case.
United States Obtains Consent Decree Against City of Mount Vernon to Address Polluting Storm SewersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator for Region 2 of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States and the State of New York have entered into a civil Consent Decree with the CITY OF MOUNT VERNON, New York, to resolve ongoing litigation regarding MOUNT VERNON’s non-compliance with Clean Water Act requirements for municipal storm sewers, which has caused raw sewage to be discharged into the Bronx and Hutchinson Rivers.
U.S. Attorney Damian Williams said: “This important settlement provides a path forward for the City of Mount Vernon to comply with the Clean Water Act, protect water quality, and address the needs of its residents who are living with the unlawful discharge of sewage and illicit pollutants. My Office remains committed to protecting human health and the environment in overburdened and underserved communities such as Mount Vernon, and beyond.”
EPA Regional Administrator Lisa F. Garcia said: “The people of Mount Vernon deserve a safe and functioning sewage system. By engaging the city and state we have come up with an enforceable agreement that sets a schedule to reduce pollution and protect public health. This settlement embodies EPA’s commitment to environmental equity and working with communities to tackle the long-standing challenge of aging water infrastructure.”
The Clean Water Act generally prohibits discharges of pollutants into navigable waters, unless in compliance with a permit. Many municipalities, like MOUNT VERNON, operate “municipal separate storm sewer systems” (or “MS4s”) that carry storm water and discharge it without treatment into nearby waters. Because separate storm sewer systems do not treat the water they discharge, a municipality is required by its MS4 permit to maintain a program for identifying and eliminating any sewage or other illicit pollutants flowing into the storm sewers.
According to the allegations in the June 28, 2018, Complaint, the Consent Decree filed today, and other court records:
In June 2018, the United States sued MOUNT VERNON, alleging that since at least January 2012, MOUNT VERNON had failed to comply with these permit obligations and, as a result, had allowed raw sewage to flow into its storm sewer system and then to be discharged into the Hutchinson and Bronx Rivers. The Complaint also alleged that MOUNT VERNON had failed to comply with two EPA Administrative Orders issued to compel MOUNT VERNON’s adherence to these requirements. New York State joined the United States as co-plaintiff in this lawsuit.
In September 2020, the District Court granted the governments’ motion for summary judgment and entered an order requiring MOUNT VERNON to take various steps to come into compliance with Clean Water Act MS4 requirements. However, after the court order was entered, Mount Vernon repeatedly missed deadlines and reporting obligations, forcing the governments to obtain multiple subsequent court orders compelling compliance and imposing financial sanctions against MOUNT VERNON.
Despite this need for enforcement efforts, as reflected in the Consent Decree, MOUNT VERNON has made progress on its compliance obligations. Much work, however, remains to be done. New York State has provided or committed to provide significant financial assistance to MOUNT VERNON to fund repairs to the City’s sewers.
The Consent Decree, filed with the Court today, provides a path forward for compliance in light of these developments, including by requiring MOUNT VERNON to perform sewer system repairs that MOUNT VERNON estimates will cost in excess of $100 million. Among other requirements, the Consent Decree provides the following:
- MOUNT VERNON must construct two pump stations designed to eliminate identified sources of potential infiltration to the MS4.
- MOUNT VERNON must either eliminate all other sources of illicit discharges within 30 days of identifying them or submit a binding plan for EPA’s and New York State’s approval for addressing specific sources that require a longer period to eliminate.
- Immediately upon identifying sanitary sewer overflows that could cause illicit discharges into the MS4, MOUNT VERNON must take steps to mitigate those overflows.
- MOUNT VERNON must complete a Sewer System Evaluation Survey and submit for EPA’s and New York State’s approval a Sewer System Corrective Action Plan (“SSCAP”) “that addresses structural, operational, and maintenance issues for each of the conditions identified in the Sewer System Evaluation Survey.” The SSCAP will be binding and enforceable under the Consent Decree.
- MOUNT VERNON must implement its updated Stormwater Management Program Plan for its MS4 and its Capacity, Management, Operation, and Maintenance program for its sanitary sewers.
- MOUNT VERNON must keep its mapping of sewer system outfalls current.
- MOUNT VERNON must continue to engage engineering and financial experts to help manage its sewer system compliance.
- MOUNT VERNON must undertake transparency and environmental justice measures, including by “evaluat[ing] any potential adverse impacts of construction, repairs, and other actions undertaken pursuant to [the Consent Decree] on overburdened and underserved populations” and “mitigat[ing] any such potential adverse impacts of construction, repairs, and other actions . . . to the maximum extent possible consistent with such work.”
The Consent Decree also provides for a $200,000 civil penalty to resolve the governments’ claims for civil penalties for the violations alleged in the Complaint. Of that, $100,000 will be paid to the United States. $100,000 will be owed to New York State with payment suspended unless MOUNT VERNON fails to comply with the Consent Decree.
In the Consent Decree, MOUNT VERNON also admits, acknowledges, and accepts responsibility for certain conduct, including the following:
- Since at least 2013, MOUNT VERNON has not been in compliance with the permit applicable to its MS4 because it has not fully implemented and enforced an Illicit Discharge Detection and Elimination Program. Among other things:
- MOUNT VERNON has not provided funding, equipment, and staffing levels necessary to implement and enforce an Illicit Discharge Detection and Elimination Program.
- MOUNT VERNON did not complete an outfall reconnaissance inventory for all MS4 outfalls until 2022.
- MOUNT VERNON submitted annual reports month later than the deadlines in June 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022.
- MOUNT VERNON did not submit accurate information in its 2017 and 2018 Annual Reports regarding its completions of the Outfall Reconnaissance Inventory.
- Moreover, at least up to and including the time the Complaint was filed, MOUNT VERNON also failed to meet the following permit requirements:
- MOUNT VERNON did not maintain a map showing all outfall locations, all surface waters receiving outfall discharges, and all storm sewersheds.
- MOUNT VERNON did not adopt measurable goals for the detection, elimination, and reduction of illicit discharges.
- MOUNT VERNON did not adequately inform the public about the hazards of illegal discharges.
- MOUNT VERNON did not select and implement measures to reduce the amount of pollutants of concern in storm water discharges.
- The Mount Vernon MS4 has discharged and at times continues to discharge untreated sewage into the Bronx and Hutchinson Rivers.
- MOUNT VERNON did not comply with two administrative orders issued by EPA to compel MOUNT VERNON’s compliance with the General Permit and the Clean Water Act.
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To provide public notice and afford members of the public the opportunity to comment on the Consent Decree, the Consent Decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval.
Mr. Williams thanked the attorneys and enforcement staff at EPA Region 2 for their critical work on this matter and also thanked the attorneys and staff at the New York Attorney General’s Office and New York State Department of Environmental Conservation.
This case is being handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorney Robert William Yalen is in charge of the case.
Union County Man Sentenced to 14 Months in Prison for Role in Scheme to Steal Mail, Commit Credit Card Fraud, and Defraud United StatesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to time already served – 14 months in prison – for his role in a scheme to receive stolen credit cards and pandemic relief debit cards sent through the mail, commit bank fraud, and defraud the U.S. Postal Service and the U.S. Department of the Treasury, U.S. Attorney Philip R. Sellinger announced.
Justin Brooks, 24, of Vauxhall, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to three counts of an indictment charging him with: one count of conspiracy to commit mail theft and bank fraud, and to defraud the U.S. Postal Service and U.S. Department of the Treasury; one count of receiving stolen mail; and one count of bank fraud. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From July 2019 to Oct. 6, 2020, Books and his conspirators obtained credit cards stolen from the U.S. mail from a U.S. Postal Service letter carrier, fraudulently activated those credit cards, and then used those credit cards to make and attempt to make purchases without the cardholders’ authorization. The victims have incurred approximately $70,000 in losses from fraudulent purchases made using their stolen credit cards. Brooks also schemed to fraudulently use over $13,000 of funds pre-loaded onto Economic Impact Payment (EIP) cards issued by the U.S. Department of Treasury and sent in the U.S. mail pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), that were also stolen from the mail. The CARES Act authorized EIP payments structured as one-time refundable tax credits to certain eligible taxpayers of $1,200 for individuals, $2,400 for married couples filing jointly, and up to $500 for each qualifying child. The goal of this part of their fraud was for the conspirators to unlawfully obtain the government funds pre-loaded onto these cards.
In addition to the prison term, Judge Cecchi sentenced Brooks to three years of supervised release and ordered him to pay $87, 080 in restitution.
Brooks originally was charged with Jarid Brooks, 29, Kyle Williams, 37, and Kyjuan Hutchins, 23, also of Vauxhall, in October 2020. Jarid Brooks, Williams and Hutchins have all pleaded guilty to their roles in the conspiracy. Jarid Brooks and Hutchins are awaiting sentencing; Williams was previously sentenced.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. He also thanked the Union County Prosecutor’s Office, the Caldwell Police Department, the Fairfield Police Department, the Boonton Police Department, and the Millburn Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou, Chief of the Opioid Abuse Prevention and Enforcement Unit of the Criminal Division in Newark.
U.S. Attorney’s Office for Eastern District of Michigan Celebrates Funding Awarded for Community Responses to Gender-Based Violence and Community Responses for Gender-Based ViolenceRead the Press Release
DETROIT - In commemoration of the 29th anniversary of the original enactment of the Violence Against Women Act (VAWA), the Justice Department announced nearly $193 million in formula and discretionary grant awards to support crucial services and justice responses for survivors of domestic violence, dating violence, sexual assault, and stalking, including $5,283,715.00 for the Eastern District of Michigan.
For nearly three decades, VAWA provided the tools and resources to protect and serve survivors of domestic violence, dating violence, sexual assault, and stalking. To commemorate the 29th anniversary of VAWA, the U.S. Attorney’s Office for the Eastern District of Michigan is proud to announce that the Department of Justice Office on Violence Against Women (OVW) awarded $5,283,715.00 to the Eastern District of Michigan to support community responses to gender-based violence.
Specifically, the Eastern District of Michigan received the following funds for the 2023 fiscal year:
· OVW awarded $580,000.00 under Grants for Training and Services to End Violence Against Individuals with Disabilities and Deaf People Program (Disability Grant Program) to support services for individuals who have disabilities or are Deaf. Funding will provide specialized training, outreach, cross-training for various agencies, and developing model programs to strengthen organizational capacities in assisting survivors. The recipient of the grant is the Michigan Coalition to End Domestic and Sexual Violence.
In addition, VAWA’s signature program is the STOP (Services, Training, Officers, and Prosecutors) Violence Against Women Formula Grants Program, which awards funds to every U.S. state and territory to promotes a coordinated community response among law enforcement, prosecution, courts, victim services organizations, and other community services to ensure the safety of survivors. OVW is awarding $4,703,715 under the STOP Program to the Michigan Department of Health and Human Services to enhance the capacity for communities across the country to develop programs to end gender-based violence and hold offenders accountable.
Just last week the Department of Justice Office on Violence Against Women (OVW) awarded $1.2 million to the Eastern District of Michigan to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking. The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety.
• OVW awarded $750,000 under the Legal Assistance for Victims (LAV) Program to the Michigan Advocacy Program of Ypsilanti. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. Through this new Legal Assistance for Victims project, the Tribal Survivor Project, which is housed within the Michigan Advocacy Program, in partnership with Uniting Three Fires Against Violence, seeks to expand culturally specific, free civil legal assistance in family court matters in state and tribal courts to tribal survivors of domestic violence, sexual assault, and stalking in Michigan, prioritizing survivors in northern Michigan.
• OVW awarded $450,000 under the Justice for Families (JFF) Program to Growth Works, Inc. of Plymouth. The JFF Program aims to improve the capacity of communities and courts to respond to families impacted by violence. Through this new Justice for Families project, Growth Works, in partnership with First Step and the Third Judicial Circuit Court of Michigan, will implement a standard project addressing the following purpose areas: 1) supervised visitation and safe exchange; 3) training for court-based and court related personnel; and 8) training within the civil justice system for Wayne County, Michigan.
Dawn N. Ison, United States Attorney commented: “Preventing and ending violence against women makes the world a safer and more equitable place. I am very pleased that the Office on Violence Against Women recognizes this important work and has made these significant investments in our community.
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OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
U.S. Attorney Young Announces $736,842 in U.S. Department of Justice Grant Funding to Support the Accessibility of Criminal Justice Information to Law EnforcementRead the Press Release
CONCORD – The U.S. Department of Justice has awarded $736,842 to improve the accuracy, utility, and interstate accessibility of criminal records in the District of New Hampshire, U.S. Attorney Jane E. Young announces.
Specifically, the New Hampshire Attorney General’s Office has received the FY2023 National Criminal History Improvement Program Supplemental Funding to support the New Hampshire State Police’s (NHSP) efforts to:
1) Increase the functionality, speed and dissemination of shared criminal justice records and information among law enforcement partners.
2) Enhance the state’s records systems to include data for boat information, such as New Hampshire Marine Patrol vessel stops, search capabilities, and the creation and printing of Marine Patrol e-Tickets.
3) Fund equipment purchases for 10 New Hampshire law enforcement agencies to connect to the State Message Platform, which is a telecommunication service operated by the NHSP.
“Today’s grant award supports the U.S. Department of Justice’s mission to reduce violent crime by further connecting law enforcement partners to vital criminal justice intelligence and capabilities that will aid in critical public safety services,” said U.S. Attorney Jane E. Young. “The U.S. Attorney’s Office will continue to support information sharing between federal, state, and local agencies.”
The FY2023 National Criminal History Improvement Program Supplemental Funding aims to further the U.S. Department of Justice’s mission to reduce violent crime and address gun violence by improving the accuracy, utility, and interstate accessibility of criminal-history and related records in support of national record systems and their use for name- and fingerprint-based criminal history background checks.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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U.S. Attorney Josh Hurwit to Co-Sponsor “United Against Hate” Summit in PocatelloRead the Press Release
POCATELLO – U.S. Attorney Josh Hurwit along with Idaho State University, the Shoshone Bannock Tribes, the Family Services Alliance, the City of Pocatello, and the Bannock County Sheriff’s Office are convening a United Against Hate summit on September 26 at Idaho State University in Pocatello. The event is free and is open to the public. The registration link can be found here: www.eventbrite.com/e/united-against-hate-tickets-707962393577.
United Against Hate is an initiative launched by the Department of Justice focused on improving efforts to combat hate crimes and hate incidents through relationship building at the local level. Through this endeavor, the U.S. Attorney’s Office seeks to create and strengthen trust and partnerships among law enforcement, community leaders, and residents. Well‑attended summits have already been held in Coeur d’Alene, Caldwell, Boise, and Ketchum.
“In my view, this initiative is particularly timely for Idaho, as we have experienced a series of troubling hate incidents throughout the state in the past several years,” said U.S. Attorney Hurwit. “As Attorney General Garland has said, this is a moment for an all-hands-on-deck approach to combatting unlawful hate.”
The September 26 event will include remarks from local leaders, presentations from prosecutors about hate crimes laws and reporting mechanisms, and speakers who will share their courageous experiences responding to hate.
“I look forward to meeting community members and hearing different perspectives on how we can work together to unite our community in standing up to unlawful hate,” said U.S. Attorney Hurwit. “And I am deeply honored to partner with our co-sponsors to prioritize this critical mission.”
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Two Individuals, Including A Former Pharmaceutical Executive, Plead Guilty to Participating in Insider Trading Scheme Surrounding Alexion Pharmaceuticals’ Acquisition of Portola PharmaceuticalsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that, on September 15, 2023, JOSEPH DUPONT pled guilty to one count of securities fraud, and earlier today, SLAVA KAPLAN, a/k/a “Stanley Kaplan,” pled guilty to one count of securities fraud, both in connection with their participation in an insider trading scheme surrounding the announcement of Alexion Pharmaceuticals, Inc.’s acquisition of Portola Pharmaceuticals, Inc. DUPONT and KAPLAN were arrested in June of this year and pled guilty before U.S. District Judge Gregory H. Woods.
U.S. Attorney Damian Williams said: “Dupont admitted in court that he gave his friend sensitive information that Dupont had misappropriated from his employer at the time so that his friend could profit. And Kaplan admitted in court both that he made profitable trades based on information that he knew was provided to him for an illegitimate purpose, and that he passed that information along to others. These convictions reflect my Office’s ongoing commitment to ensuring fairness in the stock market.”
According to the allegations in the Indictment and statements made in public court proceedings:
In 2020, DUPONT, KAPLAN, and others engaged in an insider trading scheme surrounding the announcement of Alexion’s acquisition of Portola. DUPONT was a vice president at Alexion and, on January 31, 2020, was informed of Alexion’s upcoming acquisition of Portola. Before that acquisition was publicly announced, in April 2020, DUPONT provided material nonpublic information (“MNPI”) that he misappropriated from Alexion about the acquisition to a friend so that the friend could use the information to trade profitably in securities.
In turn, DUPONT’s friend provided KAPLAN, who was also known to DUPONT, the MNPI about Portola’s pending acquisition, both so that KAPLAN could trade in advance of the acquisition and so that KAPLAN would assist DUPONT’s friend in formulating trading strategies to maximize DUPONT’s friend’s own trading profits. KAPLAN further shared MNPI about the upcoming acquisition with a family member and a friend and colleague. After Alexion’s acquisition of Portola was publicly announced on the morning of May 5, 2020, causing Portola’s stock price to increase significantly, KAPLAN and others who had purchased shares and options based on DUPONT’s inside information sold their shares of Portola and call options for Portola stock, reaping millions of dollars of illegally obtained trading profits.
* * *
DUPONT, 44, of Rehoboth, Massachusetts, and KAPLAN, 45, of Hopewell Junction, New York, each pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. DUPONT and KAPLAN are scheduled to be sentenced by Judge Woods on January 5, 2024, at 1:00 p.m. and 3:00 p.m., respectively.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Sarah Mortazavi, and Samuel P. Rothschild are in charge of the prosecution.
Two Indian Nationals Each Sentenced to 41 Months in Prison for Receiving over $1.2 Million in Global Robocall Scam that Defrauded Elderly VictimsRead the Press Release
NEWARK, N.J. – Two Indian nationals were each sentenced today to 41 months in prison for their roles in a conspiracy to commit wire fraud by accepting illegally obtained $1.2 million in wire transfers from victims across the United States, U.S. Attorney Philip R. Sellinger announced.
Arushobike Mitra, 29, and Garbita Mitra, 25, (no relation) both previously pleaded guilty before U.S. District Judge Esther Salas one count of conspiracy to commit wire fraud. Judge Salas imposed the sentences today in Newark federal court.
U.S. Attorney Philip R. Sellinger“These defendants and their conspirators preyed upon some of our most vulnerable citizens, using trickery and threats to coerce them into sending money. Protecting our elderly population from these kinds of deceitful robocall scams is a priority of our office. Those who engage in this kind of elder fraud scheme can expect to face justice.”
“These defendants and their conspirators preyed upon some of our most vulnerable citizens, using trickery and threats to coerce them into sending money,” U.S. Attorney Sellinger said. “Protecting our elderly population from these kinds of deceitful robocall scams is a priority of our office. Those who engage in this kind of elder fraud scheme can expect to face justice.”
According to documents filed in this case and statements made in court:
As part of an international fraud scheme, criminal India-based call centers utilized automated robocalls to victims across the country with the intent of defrauding U.S. residents, particularly the elderly. After establishing contact with victims through these automated calls, other members of the conspiracy would coerce or trick the victims into sending large sums of cash through physical shipments or wire transfers to other members of the conspiracy, including the Mitras. These conspirators used a variety of schemes to convince victims to send money, including impersonating government officials from agencies such as the Social Security Administration, or impersonating law enforcement officers from the FBI or DEA, and threatened victims with severe legal or financial consequences if they did not comply. Another method utilized by the callers involved convincing the victim they were speaking with someone from a tech support company and coercing the victim into granting the caller remote access to their personal computers. The caller would then access the victim’s bank accounts and make it appear to the victim that the caller had inadvertently added money to the victim’s bank account, when in fact the caller had simply transferred money from another one of the victim’s own accounts. The caller would then instruct the victim to “return” the money by way of mail or wire transfer to other members of the conspiracy, including the Mitras.
In addition to the prison terms, Judge Salas sentenced Arushobike Mitra and Garbita Mitra each to three years of supervised release and ordered them to pay $835,324 in restitution.
U.S. Attorney Sellinger credited special agents of the Social Security Administration, Office of the Inspector General, Office of Investigations, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the Department of Homeland Security, Homeland Security Investigations, Cyber Intrusion Group, and El Dorado Task Force Asset Identification & Removal Group, under the direction of Special Agent in Charge Ivan J. Arvelo in New York; postal inspectors of the U.S. Postal Inspection Service in Newark Division, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to today’s sentencings. He also thanked the Hoboken Police Department, the Hudson County Prosecutor’s Office, the New York City Police Department, and the Brunswick County, North Carolina, Sheriff’s Office for their assistance.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden.
Two Charged with Federal Narcotics Offenses Resulting in Death in Connection with the Poisoning of Four Children at a New York DaycareRead the Press Release
A criminal complaint was unsealed today in Manhattan, New York, federal court charging Grei Mendez, 36, and Carlisto Acevedo Brito, 41, both of the Bronx, New York, with narcotics possession with intent to distribute resulting in death and conspiracy to distribute narcotics resulting in death in connection with the poisoning of four children under the age of three, one of whom died, at a daycare facility in the Bronx. Mendez and Acevedo Brito are both in custody and will be presented today before U.S. Magistrate Judge Jennifer E. Willis.
“The charges announced today are the tragic result of fentanyl poisoning more innocent Americans, this time young children,” said Deputy Attorney General Lisa O. Monaco. “The Department of Justice will continue to hold accountable anyone who plays a part in the supply-and-delivery chain that is flooding fentanyl into our communities. We will not rest in our efforts to protect the vulnerable.”
“Parents entrusted Grei Mendez with the care of their children,” said U.S. Attorney Damian Williams for the Southern District of New York. “As alleged, instead of diligently safeguarding the well-being of those children, she and her co-conspirators put them directly in harm’s way, running a narcotics operation and storing deadly fentanyl out of the very space in which the children ate, slept, and played. The disregard shown by Mendez and her co-conspirators for the lives of the children under her care is simply staggering.”
“Tragedy doesn’t begin to describe the events that took place at Divino Niño Daycare,” said Special Agent in Charge Frank A. Tarentino III of the Drug Enforcement Administration (DEA)’s New York Field Division. “This death and drug poisonings are every parent’s worst nightmare and clearly define the danger fentanyl poses to every New Yorker. Fentanyl kills indiscriminately, and the defendants’ callous and irresponsible disregard to safety led to two of the most heinous acts imaginable, causing the death of a child and poisoning three other children. These crimes are unacceptable. I commend the work of the investigators from the DEA and NYPD and our partners at the Southern District of New York who work tirelessly every single day to stop drug poisonings from taking too many lives too soon.”
“This case reflects every parent’s worst nightmare,” said Police Commissioner Edward A. Caban of the New York Police Department (NYPD). “These alleged drug traffickers brazenly went about their illicit business in one of the most ill-conceived locations imaginable, but they will be held accountable. I thank the dedicated investigators of the NYPD and the DEA, and everyone involved at the U.S. Attorney’s Office for the Southern District of New York and the Bronx District Attorney’s Office, for their efforts to secure justice for the most vulnerable New Yorkers among us – our children.”
As alleged in the complaint, from at least in or about July 2023 through at least in or about September 2023, Mendez and Acevedo Brito and others conspired to distribute fentanyl, including at a children’s daycare center in the Bronx (the Daycare). There, despite the daily presence of young children, the defendants maintained large quantities of fentanyl, including a kilogram of fentanyl stored on top of children’s playmats. In addition, the defendants maintained in the Daycare items purpose-built for the distribution of large quantities of narcotics, including three so-called “kilo presses,” which are designed for the recompression of drugs in powder form commonly used by narcotics traffickers at “mills” or other locations where narcotic drugs are broken down, combined with fillers, and portioned for sale. The narcotics and one of the kilo presses recovered are pictured below.
As a consequence of the defendants’ drug conspiracy, on or about Sept. 15, at the Daycare, four children, who were all under three years of age, appear to have experienced the effects of poisoning from exposure to fentanyl.
Prior to the arrival of emergency personnel at the Daycare on that date, Mendez, in concert with an unnamed co-conspirator (CC-1) removed evidence from the Daycare. In particular, immediately before Mendez called 911 to summon medical assistance for the children, she called CC-1. CC-1 then arrived at the Daycare, stayed for approximately two minutes, and then exited out a back alleyway carrying two full shopping bags – all while the children were unresponsive and awaiting medical assistance. Three of the children were hospitalized with serious injuries. The fourth child, a one-year-old boy, died.
Acevedo Brito resided in a bedroom located within the Daycare and is the cousin of CC-1. One of the kilo presses found at the Daycare was located in the closet inside Acevedo Brito’s bedroom. Additionally, a search of Acevedo Brito’s phone revealed numerous messages suggestive of his involvement in narcotics trafficking.
Mendez and Acevedo Brito are each charged in count one with conspiracy to distribute narcotics resulting in death and in count two with narcotics distribution resulting in death. Both count one and count two carry a minimum penalty of 20 years in prison and a maximum penalty of life in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA, the NYPD, the Organized Crime Drug Enforcement Task Force (OCDETF) New York Strike Force, the U.S. Attorney’s Office for the Southern District of New York’s Digital Forensic Unit, and the Complex Analytical and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area investigated the case, in coordination with the Bronx County District Attorney’s Office.
The U.S. Attorney’s Office for Southern District of New York’s Narcotics Unit is prosecuting the case. Assistant U.S. Attorneys Brandon C. Thompson and Maggie Lynaugh for Southern District of New York are in charge of the prosecution.
The OCDETF New York Strike Force is a crime-fighting unit comprising federal, state, and local law enforcement agencies supported by OCDETF and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA; NYPD; New York State Police; Homeland Security Investigations; IRS-Criminal Investigation; U.S. Customs and Border Protection; New York National Guard; U.S. Coast Guard; New York State Department of Corrections and Community Supervision; Bergen County Prosecutor’s Office; Fort Lee Police Department; Palisades Interstate Parkway Police; Teaneck Police Department; Hillsdale Police Department; Closter Police Department; Northvale Police Department; River Vale Police Department; Englewood Police Department; Saddle River Police Department; Bergen County Sheriff’s Department; Hawthorne Police Department; and Hackensack Police Department.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Charged with Federal Narcotics Offenses Resulting in Death in Connection with the Poisoning of Four Children at A Bronx DaycareRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Lisa O. Monaco, the Deputy Attorney General of the United States, Frank A. Tarentino III, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a criminal Complaint in Manhattan federal court charging GREI MENDEZ and CARLISTO ACEVEDO BRITO with narcotics possession with intent to distribute resulting in death and conspiracy to distribute narcotics resulting in death in connection with the poisoning of four children under the age of three, one of whom died, at a daycare facility in the Bronx. MENDEZ and ACEVEDO BRITO are both in custody and will be presented today before U.S. Magistrate Judge Jennifer E. Willis.
U.S. Attorney Damian Williams said: “Parents entrusted Grei Mendez with the care of their children. As alleged, instead of diligently safeguarding the well-being of those children, she and her co-conspirators put them directly in harm’s way, running a narcotics operation and storing deadly fentanyl out of the very space in which the children ate, slept, and played. The disregard shown by Mendez and her co-conspirators for the lives of the children under her care is simply staggering.”
Deputy Attorney General Lisa O. Monaco said: “The charges announced today are the tragic result of fentanyl poisoning more innocent Americans, this time young children. The Department of Justice will continue to hold accountable anyone who plays a part in the supply-and-delivery chain that is flooding fentanyl into our communities. We will not rest in our efforts to protect the vulnerable.”
DEA Special Agent in Charge Frank A. Tarentino III said: “Tragedy doesn’t begin to describe the events that took place at Divino Niño Daycare. This death and drug poisonings are every parent’s worst nightmare and clearly define the danger fentanyl poses to every New Yorker. Fentanyl kills indiscriminately, and the defendants’ callous and irresponsible disregard to safety led to two of the most heinous acts imaginable, causing the death of a child and poisoning three other children. These crimes are unacceptable. I commend the work of the investigators from the DEA and NYPD and our partners at the Southern District of New York who work tirelessly every single day to stop drug poisonings from taking too many lives too soon.”
NYPD Police Commissioner Edward A. Caban said: “This case reflects every parent’s worst nightmare. These alleged drug traffickers brazenly went about their illicit business in one of the most ill-conceived locations imaginable, but they will be held accountable. I thank the dedicated investigators of the NYPD and the DEA, and everyone involved at the U.S. Attorney’s Office for the Southern District of New York and the Bronx District Attorney’s Office, for their efforts to secure justice for the most vulnerable New Yorkers among us – our children.”
As alleged in the Complaint:[1]
From at least in or about July 2023 through at least in or about September 2023, GREI MENDEZ and CARLISTO ACEVEDO BRITO and others conspired to distribute fentanyl, including at a children’s daycare center in the Bronx (the “Daycare”). There, despite the daily presence of young children, the defendants maintained large quantities of fentanyl, including a kilogram of fentanyl stored on top of children’s playmats. In addition, the defendants maintained in the Daycare items purpose-built for the distribution of large quantities of narcotics, including three so-called “kilo presses,” which are designed for the recompression of drugs in powder form commonly used by narcotics traffickers at “mills” or other locations where narcotic drugs are broken down, combined with fillers, and portioned for sale. The narcotics and one of the kilo presses recovered are pictured below.
As a consequence of the defendants’ drug conspiracy, on or about September 15, 2023, at the Daycare, four children, who were all under three years of age, appear to have experienced the effects of poisoning from exposure to fentanyl.
Prior to the arrival of emergency personnel at the Daycare on that date, MENDEZ, in concert with an unnamed co-conspirator (“CC-1”) removed evidence from the Daycare. In particular, immediately before MENDEZ called 911 to summon medical assistance for the children, she called CC-1. CC-1 then arrived at the Daycare, stayed for approximately two minutes, and then exited out a back alleyway carrying two full shopping bags — all while the children were unresponsive and awaiting medical assistance. Three of the children were hospitalized with serious injuries. The fourth child, a one-year-old boy, died.
ACEVEDO BRITO resided in a bedroom located within the Daycare and is the cousin of CC-1. One of the kilo presses found at the Daycare was located in the closet inside ACEVEDO BRITO’s bedroom. Additionally, a search of ACEVEDO BRITO’s phone revealed numerous messages suggestive of his involvement in narcotics trafficking.
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MENDEZ, 36, and ACEVEDO BRITO, 41, both of the Bronx, New York, are each charged in Count One with conspiracy to distribute narcotics resulting in death and in Count Two with narcotics distribution resulting in death. Both Count One and Count Two carry a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the DEA, the NYPD, the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force, the SDNY Digital Forensic Unit, and the Complex Analytical and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area. Mr. Williams also thanked the Bronx County District Attorney’s Office for its coordination on this case.
The OCDETF New York Strike Force is a crime-fighting unit comprising federal, state, and local law enforcement agencies supported by OCDETF and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA; NYPD; New York State Police; Homeland Security Investigations; U.S. Internal Revenue Service, Criminal Investigation; U.S. Customs and Border Protection; New York National Guard; U.S. Coast Guard; New York State Department of Corrections and Community Supervision; Bergen County Prosecutor’s Office; Fort Lee Police Department; Palisades Interstate Parkway Police; Teaneck Police Department; Hillsdale Police Department; Closter Police Department; Northvale Police Department; River Vale Police Department; Englewood Police Department; Saddle River Police Department; Bergen County Sheriff’s Department; Hawthorne Police Department; and Hackensack Police Department.
This case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Brandon C. Thompson and Maggie Lynaugh are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact descried therein should be treated as an allegation.
Tuscaloosa Man Convicted on Drug ChargeRead the Press Release
TUSCALOOSA, Ala. – A federal jury today convicted a Tuscaloosa man on a drug charge, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
The jury returned its guilty verdict against Jimmy Lee Spencer, 37, after 2 days of testimony before Chief U.S. District Court Judge L. Scott Coogler. Spencer was convicted of possession with intent to distribute cocaine and marijuana.
According to evidence presented at trial, Spencer had large amounts of cocaine and marijuana inside his home in Tuscaloosa. He also had multiple firearms, digital scales, a money counter, a vacuum sealer, and a plethora of packaging material that he used to package and sell narcotics in the community.
The maximum penalty for possession with the intent to distribute cocaine and marijuana is 20 years in prison.
The ATF investigated the case along with the West Alabama Narcotics Task Force. Assistant U.S. Attorneys Brittany T. Byrd and M. Blake Milner are prosecuting the case.
Teo Boon Ching Sentenced to 18 Months in Prison for Large-Scale Trafficking of Rhinoceros HornsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that TEO BOON CHING, a/k/a “Zhang,” a/k/a “Dato Sri,” a/k/a “Godfather,” was sentenced to 18 months in prison for conspiring to traffic hundreds of kilograms of rhinoceros horns worth millions of dollars that involved the illegal poaching of numerous rhinoceros, an endangered wildlife species. The sentence was imposed earlier today by U.S. District Judge Paul A. Crotty.
CHING, who was extradited from Thailand, is the sixth large-scale wildlife trafficker sentenced in cases recently brought by this Office, which also involved the extradition of multiple individuals from several countries in Africa. CHING and his associated entities were previously sanctioned by the U.S. Treasury Department Office of Foreign Assets Control (“OFAC”) pursuant to E.O. 13581, as amended.
U.S. Attorney Damian Williams said: “Wildlife trafficking is a serious threat to the natural resources and the ecological heritage shared by communities across the globe, enriching poachers responsible for the senseless illegal slaughter of numerous endangered rhinoceros and furthering the market for these illicit products. The substantial sentence shows the resolve of this Office to use every tool at our disposal to ensure the protection of endangered species.”
According to the charging and other documents filed in the case, as well as statements made in court proceedings:
CHING was a member of a transnational criminal conspiracy engaged in the large-scale international trafficking and smuggling of rhinoceros horns to sell to foreign buyers, including buyers represented to be in Manhattan. Trade involving endangered or threatened species violates several U.S. laws as well as international treaties implemented by certain U.S. laws. During the course of the conspiracy and related conduct, CHING conspired to transport, distribute, sell, and smuggle at least approximately 219 kilograms of rhinoceros horns resulting from the poaching of numerous rhinoceros and having an estimated value of at least approximately $2.1 million.
On a number of occasions, CHING met with a confidential source to negotiate the sale of rhinoceros horns. For example, on July 17 and 18, 2019, the confidential source met with CHING in Malaysia. During those meetings, CHING stated that he served as a “middleman” — one who acquires rhinoceros horns poached by co-conspirators in Africa and ships them to customers around the world for a per-kilogram fee. He also promised the confidential source “as long as you have cash, I can give you the goods in 1-2 days.” During their communications, CHING sent the confidential source numerous photographs of rhinoceros horns that CHING had available for sale and shipment, including the following:
July 28, 2019, Communications
August 19-20, 2019, Communications
In August 2019, the confidential source, at the direction of law enforcement, purchased 12 rhinoceros horns from CHING with money that CHING believed were the proceeds of other illegal wildlife trafficking and was in bank accounts in New York. These horns were delivered in a suitcase in Thailand by those working for the wildlife trafficking organization. A U.S. Fish and Wildlife Service forensics laboratory examined the rhinoceros horns and concluded that two horn pieces were black rhinoceros horns, and the other 10 pieces were white rhinoceros horns. Pictures of white and black rhinoceros are depicted below:
White Rhinoceros
Black Rhinoceros
A picture of the 12 rhinoceros horns that CHING arranged to be sold to law enforcement through the confidential source and had delivered are depicted below:
CHING was arrested in Thailand on June 29, 2022, at the request of the United States pursuant to a bilateral extradition treaty and was extradited to the United States on October 7, 2022.
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CHING, 58, of Malaysia, pled guilty to one count of conspiracy to commit wildlife trafficking.
Mr. Williams praised the outstanding work of the U.S. Fish and Wildlife Service. In addition, Mr. Williams thanked the Royal Thai Government for its assistance in the extradition of CHING to the United States and commended law enforcement authorities and conservation partners in Thailand, including the Office of the Attorney General and the Royal Thai Police, Natural Resources and Environmental Crime Suppression Division. Mr. Williams also thanked the Embassy of the United States in Bangkok and the U.S. Department of Justice’s Office of International Affairs for providing substantial assistance in securing the arrest and extradition of CHING.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Michael R. Herman and Danielle Kudla are in charge of the prosecution.
Teacher’s Aide and Youth Hockey Coach Sentenced to More Than 15 Years for Distributing Sexually Explicit Images of ChildrenRead the Press Release
NEWS RELEASE SUMMARY – September 19, 2023
SAN DIEGO – Daniel Zachary Dasko of Carlsbad, a former teacher’s aide and youth hockey coach, was sentenced in federal court today to 188 months in prison for sending sexually explicit images of children to others online.
Dasko, who is out on bond, was ordered to report to prison on October 3. Dasko pleaded guilty on April 11, 2023, to one count of Distribution of Images of Minors Engaged in Sexually Explicit Conduct.
Dasko’s distribution of images and videos of children being sexually abused was discovered during the course of another investigation into similar activity. In July 2021, the Philadelphia Division of the FBI received a cyber tip from the National Center for Missing and Exploited Children regarding a man uploading child pornography. The subject was identified as a teacher in the Philadelphia area.
FBI Philadelphia executed a search warrant on the Philadelphia man’s residence. A review of his iPhone revealed numerous conversations regarding child pornography using a social media application that allowed the user to produce and trade images created by baiting minor victims to send nude photos or videos, or to go live online and be screen-recorded. The Philadelphia subject and other coconspirators would first pose as females on social media sites in order to chat with the victims, and then transfer their communications to a closed social media application that allowed the exchange of these nude photos and videos.
During this investigation, FBI agents determined that Dasko communicated with the Philadelphia man and his other co-conspirators under the name “Mr. Pickles.” From October 3, 2020, to October 3, 2021, Dasko exchanged over 3,671 messages with the Philadelphia man, including numerous images and videos depicting children being sexually abused.
The vast majority of these messages were conversations about sexually exploiting children Dasko and his co-conspirators knew or met online. The Philadelphia man and Dasko discussed at length and in graphic, disturbing detail, their attraction to young boys and their attempts to catfish them. Catfishing – one of the most common internet scams targeting young people - happens when a person poses as someone else in an online relationship.
Dasko even went so far as to forward social media contact information of children that he knew to his co-conspirators, so the children could be catfished online. This scheme achieved results. For example, Dasko distributed a video of a 13-year-old boy masturbating. This victim had been catfished by one of Dasko’s co-conspirators.
“This defendant is a sexual predator who used his position as a teacher and coach to inform his sexual interests and to target kids for online abuse,” said Acting U.S. Attorney Andrew Haden. “His job was to educate and protect children. Instead, he exploited them. We will do everything in our power protect children and hold offenders accountable.”
“Crimes involving sexually exploiting children are especially disgusting and disturbing,” said FBI San Diego Special Agent in Charge Stacey Moy. “I'm proud of the hard work conducted by our agents and law enforcement partners to bring these criminals to justice for their abhorrent behavior.”
This case is being prosecuted by Assistant U.S. Attorneys Mandy Griffith and Andrew Sherwood.
DEFENDANTS Case Number 22cr1715-LL
Daniel Dasko Age: 32 Carlsbad, CA
SUMMARY OF CHARGES
Distribution of Images of Minors Engaged in Sexually Explicit Conduct – Title 18, U.S.C., Section 2252(a)(2).
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCY
Federal Bureau of Investigation
Tampa Man Sentenced to More Than 13 Years for Conspiracy to Commit Robbery and Armed Robberies of Auto Parts Stores in TampaRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Kimball Mizelle has sentenced Steve Jackson (41, Tampa) to 13 years and 6 months in federal prison for conspiracy to commit robbery, robbery, and brandishing a firearm during and in relation to a crime of violence. Jackson had pleaded guilty on June 23, 2023. His codefendant, Antonio Brown, previously pleaded guilty and is pending sentencing.
According to court documents, on August 29, 2021, Jackson and Brown drove to an auto parts store on South Dale Mabry Highway in Tampa carrying firearms and wearing surgical masks as they entered the store. They brandished their firearms, demanded money from store employees, and stole approximately $300 from the cash registers.
Shortly after completing the first robbery, Jackson and Brown drove to an auto parts store on 50th Street North in Tampa, where they again entered wearing masks and carrying firearms. They pointed their firearms at store clerks and demanded money from the cash registers. Jackson and Brown stole approximately $1,140 during this robbery.
Later that evening, officers from the Tampa Police Department conducted a traffic stop on a vehicle Brown was driving. During a search of the car, they found a distinctive hat that one of the robbers had worn during the armed robberies, approximately $900 in cash, and Jackson’s wallet containing his identification. Further investigation revealed that Jackson had been in the vicinity of the auto parts stores at the times of the robberies. Officers also found the clothes Jackson wore during the robberies in his garbage outside of his residence.
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 Federal Bureau of Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys David W.A. Chee, Michael Sinacore, and Charlie Connally.
Ste. Genevieve County Man Sentenced to Serve 9 Years in Prison for Receipt of Child PornographyRead the Press Release
CAPE GIRARDEAU – United States District Judge Stephen N. Limbaugh Jr. on Tuesday sentenced a man from Ste. Genevieve County, Missouri to nine years in prison on a charge of receiving child pornography.
Timothy Ray White, 61, appeared for sentencing at the federal courthouse in Cape Girardeau.
According to court documents, on Oct. 6, 2022, a search warrant was obtained and executed at White's residence where numerous electronic devices were seized. White was present during the execution of the warrant and admitted that he had "tons" of child pornography on his devices. Further investigation revealed thousands of photos and videos depicting child pornography. White admitted to being addicted to child pornography. After service of his 108-month sentence, White was ordered to be placed on supervised release for life. He will also be required to register as a sex offender.
This case was investigated by the Missouri State Highway Patrol. Assistant United States Attorney Julie Hunter handled the prosecution for the government.
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 the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Statement of U.S. Attorney Jacqueline C. Romero on the Passing of JoAnne A. EppsRead the Press Release
On behalf of the U.S. Attorney’s Office for the Eastern District of Pennsylvania, I want to express how deeply saddened we are by the death of JoAnne A. Epps, Acting Temple University President. Acting President Epps is fondly remembered as a former Assistant U.S. Attorney from 1980 to 1985. She was an icon in the legal community, dedicating her life to public service, the rule of law, experiential legal education, equity and diversity in the profession, and the advancement of civil rights. She was tireless and passionate about the issues she held dear. We deeply mourn her passing and send our heartfelt condolences to her family in this difficult time.
On a personal note, JoAnne was a mentor and confidante. Today I mourn with countless women who had the pleasure of Joanne’s wise advice, mentorship, and counsel over the years. I am simply devastated by her passing.
St. Augustine Contractor Pleads Guilty to Failing to Pay IRS Payroll Taxes That He Withheld from Employees’ PayRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that John M. Williams (63, St. Augustine) has pleaded guilty to failing to account for, and pay over to the Internal Revenue Service (IRS), income taxes, Medicare taxes, and Social Security taxes (also known as payroll taxes) that had been withheld from employees’ pay. Williams faces a maximum penalty of five years in federal prison. A sentencing date has not been set.
According to the plea agreement, in 2012, Williams became an owner, operator, and a corporate officer of First Coast Exteriors, Inc, a stucco application and home building business. He controlled the company’s financial affairs and almost all checks drawn on its corporate checking account, including paychecks, were signed by him. As an owner and corporate officer with control of the company’s payroll and finances, Williams had a duty to collect payroll taxes from the taxable wages of his employees. Each quarter, he also had duties both to account for, and to pay over to the IRS, those payroll taxes.
An examination of Form W-2s filed for First Coast Exteriors employees showed that during the financial quarter ending March 31, 2013, through the quarter ending December 31, 2018, First Coast Exteriors withheld payroll taxes from its employees’ wages. IRS records show, however, that Williams did not account for these withholdings in Form 941 quarterly tax returns or pay these funds over to the IRS when the returns and payments were due. Between 2013 and 2018, Williams’s actions resulted in unpaid payroll taxes of approximately $306,500. During this same period, Williams also did not pay the IRS the employer’s matching share of Social Security and Medicare taxes, which totaled an additional $128,943.
First Coast Exteriors was not the only company that Williams operated that was delinquent in paying its payroll taxes. Records show beginning in 1995, he operated a business called W.W. Contractors, Inc. For the 13 financial quarters between 2009 and 2012, W.W. Contractors filed Form 941 quarterly returns, but only made partial or late payments of payroll taxes withheld and owed to the IRS.
“Sadly, our agents investigate cases like these far too frequently,” said Brian Payne, special agent in charge of the IRS-CI Tampa Field Office. “Business owners need to know that we will investigate tax cheats to ensure they are held accountable for their dishonorable actions. In this case, the defendant cheated both our federal tax system, and simply stole from his employees hard-earned employment benefits.”
This case was investigated by IRS – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Springfield Woman Indicted for Possessing Fentanyl with Intent to DistributeRead the Press Release
BOSTON – A Springfield woman has been indicted by a federal grand jury in Springfield for allegedly possessing fentanyl intended for distribution.
Karyela Santiago, 26, was indicted on one count of possession with intent to distribute fentanyl.
According to the indictment, on March 30, 2022, Santiago possessed fentanyl intended for distribution.
The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, four year of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; and Springfield Police Commissioner Cheryl Clapprood made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of the Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Springfield Man Sentenced for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man involved in at least two local shootings was sentenced in federal court today for illegally possessing a firearm.
Danyon Marquise Noble, 26, was sentenced by U.S. District Judge Stephen R. Bough to four years and nine months in federal prison without parole.
On Feb. 13, 2023, Noble pleaded guilty to being a felon in possession of a firearm.
Noble was driving a white Chevrolet Suburban when he was pulled over by deputies with the Greene County Sheriff’s Department on Sept. 1, 2022. Deputies searched the vehicle and found a loaded Smith & Wesson 9mm handgun with an attached 15-round magazine directly under the driver’s seat. They also found an empty Glock 17-round magazine in the passenger side door pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Noble has a prior felony conviction for theft of a credit or debit card.
Noble has associations with two violent street gangs, according to court documents. Both FTO and Only Da Brothers have been under investigation by law enforcement for being involved in multiple shooting incidents in the Springfield area.
According to court documents, Noble committed two additional firearm offenses prior to his arrest in this case.
On April 23, 2022, Springfield police officers pulled over a vehicle in connection with a shooting; Noble was in the backseat of the vehicle. During the search of the vehicle, officers found three firearms, including a Glock magazine and a loaded extended magazine in the backseat area. According to witnesses, Noble fired one shot from a firearm during an argument with two other individuals. Noble was swabbed for gunshot residue, and it was determined that he had gunshot residue on his person.
Less than three months later, on July 10, 2022, Springfield police officers responded to a report of multiple gunshots at an apartment building. They found multiple shell casings, bullet fragments, and one vehicle that appeared to have been struck by a bullet. Video surveillance from the apartment building showed Noble blindly firing a gun around the corner from his position in one of the doorways of the building. Evidence from his Facebook account further confirmed that he was the shooter depicted in the surveillance. Noble has been charged in state court with unlawful possession of a firearm.
The gun recovered from Noble during the Sept. 1, 2023, traffic stop was a preliminary match to the shell casings recovered from the July 10 shooting.
This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Greene County, Mo., Sheriff’s Department and the Springfield, Mo., Police Department.
Project Safe Neighborhoods
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.
Springfield Man Indicted for Drug Trafficking and Possessing Firearm in Furtherance of Drug TraffickingRead the Press Release
BOSTON – A Springfield man has been indicted by a federal grand jury in Springfield for drug trafficking and firearm offenses.
Marcus Hicks, 43, was indicted on one count of possession with intent to distribute cocaine, one count of possession with intent to distribute marijuana and one count of possessing a firearm in furtherance of drug trafficking felonies.
According to the indictment, on Nov. 21, 2022, Hicks possessed cocaine and marijuana intended for distribution and a Smith and Wesson 9mm semi-automatic handgun.
The charge of possession with intent to distribute cocaine charge provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $1 million. The charge of possession with intent to distribute marijuana charge provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $1 million. The charge of possessing a firearm in furtherance of drug trafficking felonies provides for a sentence of at least five years and up to life in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England and Springfield Police Commissioner Cheryl Clapprood made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of the Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Carolina Man Admits Securities Fraud, Bank Fraud, and Wire Fraud SchemesRead the Press Release
TRENTON, N.J. – A South Carolina man today admitted engaging in several bank and wire fraud schemes and a securities offering fraud scheme that spanned six years and caused losses of millions of dollars, U.S. Attorney Philip Sellinger announced.
Sandy John Masselli, 62, of Columbia, South Carolina, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to nine counts of a superseding indictment charging him with bank fraud, wire fraud, and securities fraud. Masselli was initially charged by complaint in October 2017.
U.S. Attorney Philip R. Sellinger“Sandy Masselli today admitted defrauding his victims through a web of lies that induced them to invest in his company with the promise of substantial returns from an initial public offering that was never going to happen. He also concealed his ill-gotten gains from banks and credit card companies with more lies. Masselli’s guilty plea means that he will now be held accountable for putting his illegal pursuit of profit before his investors’ interests. This office is fully committed to combatting securities and investment fraud schemes of all kinds, and this case is another example of that commitment.”
“Investment fraud has devastating consequences for victims, and today's guilty plea brings Masselli one step closer to accounting for the havoc he caused,” FBI-Newark Special Agent in Charge James E. Dennehy said. “The FBI and its law enforcement partners stand ready to protect investors, both large and small, from fraudsters like Masselli.”
According to the documents filed in this case and statements made in court:
From September 2011 through October 2017, Masselli solicited millions of dollars in investments from retail investors by fraudulently touting the prospect of his online gaming company, Carlyle Entertainment Ltd., formerly Carlyle Gaming & Entertainment Ltd. (Carlyle), to conduct a lucrative initial public offering (IPO) of its stock on either the NASDAQ or the New York Stock Exchange (NYSE). Masselli induced investors to purchase shares of Carlyle stock by promising them steeply discounted prices in advance of the purported IPO, assuring them that the stock price would increase significantly after the IPO. Masselli further represented that the IPO would occur within weeks or months of the investors’ stock purchases.
However, as Masselli knew, Carlyle was neither poised nor prepared to conduct an IPO on either the NASDAQ or the NYSE, given that, among other deficiencies, neither Masselli nor anyone else on behalf of Carlyle ever filed an application with the NASDAQ or the NYSE to list Carlyle stock on either exchange, or filed with the Securities and Exchange Commission (SEC) a registration statement to list Carlyle shares on a national exchange. Masselli further misrepresented to the investors how he would use their investments, for example telling them that he would allocate investment funds toward improving Carlyle’s online platform and paying legal fees in connection with preparing Carlyle for a looming IPO. Masselli did not invest these funds in Carlyle, as he had promised investors he would, but instead misappropriated these funds to pay for his and his family’s own personal expenses.
Within weeks and often days of receiving investor funds, Masselli quickly deposited them into and throughout a web of bank accounts he controlled, many of which were opened under names of fictitious corporate entities in an effort to conceal the source of the funds. After disguising the provenance of the investor funds, Masselli typically went to work quickly misappropriating the funds.
Masselli also opened multiple credit card accounts, made purchases on those accounts until he had almost reached or exceeded the credit limit, and then purported to send payments from accounts that he knew did not have sufficient funds to cover those payments. Before the fraudulent payments were rejected for insufficient funds, the credit card companies temporarily credited the accounts based on those payments, providing Masselli access to additional credit and allowing him to continue to make purchases. Masselli ultimately failed to pay the balances and the credit card companies sustained a loss. On two occasions, Masselli contacted the victim credit card companies falsely claiming that the accounts had been opened fraudulently by others who had stolen his personal identifiable information.
The bank fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine. The wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud counts each carry a maximum potential penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Feb. 8, 2024.
The SEC previously filed a civil complaint against Masselli based on the securities fraud conduct.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea. He also expressed appreciation for the SEC Division of Enforcement, under the direction of Gurbir S. Grewal.
The government is represented by Assistant U.S. Attorneys Eric A. Boden, Attorney-in-Charge of the Trenton Office, and Alexander E. Ramey of the U.S. Attorney’s Trenton Office.
masselli.sindictment.pdfSerial Domestic Abuser Sentenced to 46 Months in Federal Prison for Illegally Possessing A FirearmRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Dominic Nathaniel Alexander, age 36, of Grand Rapids, Michigan, was sentenced to 46 months in prison for possessing a firearm as a convicted felon. The government had asked the Court to impose an increased sentence due to Alexander’s “striking pattern of violence,” which included “beating and choking multiple domestic partners.” In imposing the sentence at the top of the advisory range, Chief U.S. District Court Judge Hala Y. Jarbou remarked on “the seriousness of this offense” and Alexander’s history of “assaultive” conduct.
“Today’s sentence sends a message to both perpetrators and victims of domestic violence,” said U.S. Attorney Mark Totten. “To perpetrators: if you illegally possess a firearm, federal agents and prosecutors stand ready to investigate and prosecute you to the fullest extent permitted by law. To victims: we see you, and we hear your silent cries for help. Please know there is hope, and that you are not alone.”
According to sentencing materials filed by the government, Alexander’s history of violence stretches back for nearly a decade, and includes multiple occasions on which he beat, choked, and strangled multiple domestic partners. In addition, in 2018, Alexander was convicted of stabbing an unarmed man in the back and throat, reportedly causing permanent damage. In this case, Alexander pled guilty to illegally possessing a pistol and 117 rounds of ammunition.
“Dominic Alexander is a convicted felon and a serial domestic violence abuser who illegally possessed and sold an illegal firearm. Above all else, accountability matters,” said ATF Detroit Special Agent in Charge James Deir. “Mr. Alexander is going to have a lot of free time to reflect on his consistent track record of illegal activity. Our community is a safer place today with Mr. Alexander off the streets.”
Domestic violence is a pattern of abusive behavior in any relationship that is used by one partner to gain or maintain power and control over another intimate partner. Across the nation and in Michigan domestic violence is a serious threat. According to the National Coalition Against Domestic Violence, 1 in 3 women and 1 in 4 men have experienced some form of physical violence by an intimate partner. Moreover, studies have shown that domestic violence perpetrators often use firearms to abuse and control their victims, who are five times as likely to be killed if their abuser has access to a firearm.
The U.S. Attorney’s Office for the Western District of Michigan has brought other cases to address the threat of domestic violence, as well. This past June, for example, the Office announced a 15-year sentence for Mitchell Pierce, 45, of Muskegon after he pleaded guilty to stalking and being a felon in possession of firearms. Pierce had threatened to torture and kill his ex-wife, as well as kill her children, other family members, and friends.
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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and was prosecuted by Assistant United States Attorney Patrick J. Castle.
If you are a victim of domestic violence, resources are available. To contact the National Domestic Violence Hotline, call 1-800-799-SAFE or text “START” to 88788. If you or someone you know is in immediate danger, call 911.
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San Mateo Man Sentenced to 18 Years in Prison for Crimes Including Coercing and Enticing Minors to Produce Child PornographyRead the Press Release
SAN FRANCISCO – San Mateo-based driving instructor Johnnatan Zelaya Izaguirre (Zelaya) was sentenced to serve 18 years in prison for coercing and enticing teenaged girls to produce child pornography and related crimes announced U.S. Attorney Ismail J. Ramsey and FBI Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Hon. William H. Orrick, United States District Judge.
Zelaya pleaded guilty to the charges on May 4, 2023. According to his plea agreement, Zelaya admitted that between November 2013 until January 4, 2022, he recruited minor girls—between the ages of 14 and 17 years old—to create sexually explicit images for posting online. Zelaya admitted that he had sex with at least two victims while they were minors and, on one occasion, filmed himself having sexual intercourse with a minor. He later distributed that video, depicting his sex acts with a minor, to a client knowing the minor was under 18 in the video.
Zelaya’s plea agreement describes how he recruited seven of his victims, using social media and in person. Online, he used social media accounts, including Instagram and Snapchat, to identify minor girls and to persuade them to produce sexually explicit content. In person, Zelaya used the driving school that he owned and operated to find students to recruit. When persuading his victims to create sexually explicit content, Zelaya offered to “manage” the sale of that content over social media. He told his victims about the content that customers wanted, how much the customers were willing to pay, and how much the minor should expect to make from videos, depending upon the type of video and whether they were nude or non-nude. At the time of his arrest on January 4, 2022, Zelaya had in his possession at least 41 videos and 10 photographs of the victims, as well as photos of additional unidentified girls.
On May 1, 2023, Zelaya was charged by superseding information with two counts of coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b); one count of receipt of child pornography, in violation of 18 U.S.C. §§ 2252(a)(2) and (b)(1); one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B) and (b)(2); and one count of distribution of child pornography, in violation of 18 U.S.C. §§ 2252(a)(2) and (b)(1). Pursuant to his plea agreement, Zelaya pleaded guilty to all the charges.
In addition to the prison term, Judge Orrick also ordered Zelaya to serve 15 years of supervised release which will begin after his term of imprisonment. Zelaya was immediately remanded into custody.
The case is being prosecuted by Assistant United States Attorney Lauren Harding with assistance from Patricia Mahoney and Amala James. The prosecution is the result of an investigation by the FBI and the Redwood City Police Department with assistance from the California State Department of Motor Vehicles, the Atherton Police Department, and the Burlingame Police Department.
Saginaw Man Sentenced to Federal Prison for Attempting to Purchase Kilograms of Cocaine from Under Cover Federal AgentRead the Press Release
BAY CITY — Daniel Marin, 47, of Saginaw was sentenced last week to 11 years and 8 months in federal prison for his role in attempting to purchase 17 kilograms of cocaine from an undercover federal agent, U.S. Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Angie Salazar, Special Agent in Charge of the Detroit Field Office of Homeland Security Investigations (HSI).
U.S. District Court Judge Thomas L. Ludington imposed sentence on Marin following his guilty plea to attempting to possess with the intent to distribute five or more kilograms of cocaine.
According to court documents, during the summer of 2020, Marin and two other men planned to obtain a large quantity of cocaine for distribution throughout the Saginaw-Bay area. In furtherance of the plan, Marin contacted a person whom he thought was a narcotics broker in Mexico. In reality, however, the “narcotics broker” was an undercover HSI special agent. Marin subsequently negotiated the purchase of 17 kilograms of cocaine from the undercover agent for $34,000 per kilogram. On September 3, 2020, Marin and his two co-defendants traveled to a hotel in Flint to purchase the 17 kilograms of cocaine. Marin met with the undercover agent and verified the presence of the cocaine while his two co-defendants waited in the parking lot with the money. After verifying that the undercover agent had the cocaine, Marin went to the parking lot to retrieve the money from his co-defendants. HSI agents arrested the three men and seized over $500,000 in cash from them.
“Our office, along with our state and federal law enforcement partners, will continue to hold those individuals to account who seek to import illegal drugs into our country and communities,” said U.S Attorney Ison.
“Drug traffickers who poison our communities should expect to face justice here in Michigan,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “Our agents and partners will continue to identify, disrupt and dismantle these drug trafficking organizations wherever we find them."
This investigation was conducted by Homeland Security Investigations (HSI), with assistance from the FBI, Detroit Police Department, and Michigan State Police. The case was prosecuted by Assistant United States Attorneys Timothy Turkelson and Katharine Hemann.
Richmond Woman Charged with Defrauding Tongan Community in $13 Million Stockton-Based International Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 30-count indictment on Sept. 14, 2023, against Tilila Siola’a Walker Sumchai, 61, of Richmond, charging her with wire fraud, mail fraud, securities fraud, and the sale of unregistered securities, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between January 2021 and October 2021, Walker Sumchai orchestrated a scheme to defraud investors in the United States, Australia, and New Zealand from her Stockton office. Claiming to use a secret algorithm, Walker Sumchai solicited Tongan investors and promised them that if they gave her money to purchase shares of the “Tongi Tupe” investment program, she would invest the money, and they would receive their principal investments back and thousands of dollars in returns within weeks or months. She also promised investors that if they gave her $30,000, within months they would receive a home in Lodi worth approximately $480,000. Instead, she took investors’ money and used it for her own personal expenses, including gambling, and used it to pay back and lull earlier investors. More than 1,000 investors invested over $13 million with Walker Sumchai.
This case is the product of an investigation by the Federal Bureau of Investigation and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Lee S. Bickley is prosecuting the case.
If convicted of mail fraud or wire fraud, Walker Sumchai faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conviction. If convicted of securities fraud, Walker Sumchai faces a maximum statutory penalty of 20 years in prison and a $5 million fine. If convicted of the remaining securities-related counts in the indictment, Walker Sumchai faces a maximum statutory penalty of five years in prison and a $10,000 fine for each count of conviction. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI is seeking to identify possible victims of Tilila Siola’a Walker Sumchai. If you believe that you were victimized by Walker Sumchai or have information relevant to this investigation, please complete the online form available at https://www.fbi.gov/tongitupevictims.
walker_sumchai_indictment.pdfReadout of Justice Department Officials' Trip to Ghana and Togo to Advance West Africa Consumer Fraud InitiativeRead the Press Release
Deputy Assistant Attorney General Arun G. Rao and Deputy Director Richard Goldberg of the Justice Department’s Civil Division’s Consumer Protection Branch (CPB), together with colleagues from CPB and the FBI, met Sept. 11 to 15 with various key law enforcement partners to advance CPB’s West Africa Consumer Fraud Initiative in Ghana and Togo and combat fraud schemes originating in western Africa or facilitated by criminal enterprises operating in the region.
Deputy Assistant Attorney General Rao (front row, center, right), EOCO Deputy Director, Intelligence and Monitoring, Aba Opoku (front row, center, left), Assistant Legal Attaché Justin Nwadiashi (front row, right), and other officials from the Justice Department, FBI and EOCO meet at EOCO headquarters in Accra, Ghana.Meetings in Ghana took place with the Economic and Organized Crime Office (EOCO), the Office of the Special Prosecutor, the Office of the Attorney General, the National Intelligence Bureau, the Ghana Police Service, the Financial Intelligence Centre, the Ghana Immigration Service and the Ghana Revenue Authority.Meetings in Ghana took place with the Economic and Organized Crime Office (EOCO), the Office of the Special Prosecutor, the Office of the Attorney General, the National Intelligence Bureau, the Ghana Police Service, the Financial Intelligence Centre, the Ghana Immigration Service and the Ghana Revenue Authority.
Deputy Assistant Attorney General Rao (left), Director of Administration, Assistant Commissioner of Police (ACP) Solomon Ayawine (right), Assistant Legal Attaché Justin Nwadiashi (third from left) and other officials from the Justice Department, FBI and the Ghana Police Service meet at the Ghana Police Service (GPS) headquarters in Accra, Ghana to discuss transnational cyber-enabled fraud.Meetings in Togo took place with La Direction Générale de la Police Nationale (National Police, Inspector General), Brigade de la Renseignement d’investigations (Investigations and Intelligence Brigade), Direction Centrale de la Police Judicaire (Judicial Police), Direction Générale de la Documentation Nationale (National Documentation Director), Office Central de Répression du Trafic Illicite des Drogues et du Blanchiment (Anti-Drug Trafficking and Anti-Money Laundering – AHTU/AML Office) and La Cellule National de Traitement d’Information Financielle (The National Financial Intelligence Unit).
In their meetings in Ghana, the parties discussed strengthening cooperation and collaboration on parallel investigations and providing training assistance. In addition, CPB and FBI officials shared valuable insights and lessons learned related to the investigation and prosecution of cases involving fraud and public corruption.
Deputy Assistant Attorney General Rao (center), Director of the Strategy, Research, and Communications Division of the Office of the Special Prosecutor Sammy Darko (center, left), Assistant Legal Attaché Justin Nwadiashi (center, right) and other officials from the Justice Department, FBI and the Office of the Special Prosecutor meet at the headquarters of the Office of the Special Prosecutor in Accra, Ghana.In their meeting with EOCO, the parties discussed ways to build upon prior joint successes combating transnational organized crime schemes and romance fraud, including through reducing the time it takes to share evidence and how the department can further assist EOCO prosecutions in Ghana and facilitate asset forfeiture and recovery.
In Togo, the parties discussed the initiation and continuation of joint efforts to combat cyber-enabled fraud originating in or affecting Togo. They focused on aligning priorities and exploring strategies for improving lines of communication and information-sharing mechanisms.
The CPB’s West Africa Consumer Fraud Initiative seeks to address fraud schemes, including romance scams that often target elderly and vulnerable U.S. victims, pandemic relief fraud, unemployment insurance fraud and business email compromise scams, originating in western Africa (or facilitated by criminal enterprises operating in the region), with a focus on both perpetrators and money launderers. In 2022, the FTC’s Consumer Sentinel database received romance scam reports from nearly 70,000 people, with losses of $1.3 billion. That same year, the FBI received over 21,000 complaints of business email compromise schemes, with losses of $2.7 billion.
In addition to prosecuting criminal elder fraud cases, CPB provides guidance to U.S. Attorneys' Offices, the FBI, Homeland Security Investigations, U.S. Secret Service and the U.S. Postal Inspection Service on fraud investigations with links to the region.
Deputy Assistant Attorney General Rao (left), Brigade de Renseignement d’Investigations (BRI) Police Commissioner Papa M. MENSAVI (right), and other officials from the Justice Department, FBI and La Police Nationale meet at the headquarters of La Police Nationale in Lomé, Togo, to discuss law enforcement collaboration. Deputy Assistant Attorney General Rao (center), Inspector General of Police in Togo Colonel Yaovi Okpaoul (left) and other officials from the Justice Department, FBI and La Police Nationale meet at the headquarters of La Police Nationale in Lomé, Togo, to discuss international law enforcement priorities.