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1 November 2023
Virginia Business Owner Charged with Tax Evasion and Employment Tax OffensesRead the Press Release
A federal grand jury in Alexandria, Virginia, returned an indictment, unsealed today, charging a Virginia man with income tax evasion and failure to pay employment taxes.
According to the indictment, Rick Tariq Rahim of Great Falls owned and operated two businesses, BV Management LLC, an Amazon reseller, and BusinessVentures.com LLC, an umbrella company over other businesses including laser tag facilities. Starting in at least 2012, Rahim allegedly took steps to evade IRS efforts to collect more than $1 million in federal income taxes he allegedly owed for tax years 2004 and 2011.
The indictment charges that in November 2016, Rahim submitted a false form to the IRS that omitted valuable assets he owned, including a helicopter, a 2006 Bentley, a 2008 Lamborghini and real property, the ownership of which he allegedly transferred to his wife two weeks after submitting the form. The indictment further alleges that Rahim also withdrew a total of more than $1.1 million in cash in amounts less than $10,000 to avoid triggering currency transaction reports from the bank and paid personal expenses from his businesses’ bank accounts, including more than $889,000 toward his mortgages and more than $669,000 to purchase or lease cars, including three different Lamborghinis.
In addition, the indictment charges that from 2015 to 2021, Rahim also did not pay to the IRS the taxes that his businesses withheld from employee paychecks or file quarterly tax returns reporting those withholdings.
If convicted, Rahim faces a maximum penalty of five years in prison for the tax evasion count and five years in prison for each count of failing to pay over employment tax withholdings. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney William Montague of the Tax Division and Assistant U.S. Attorney Kimberly Shartar for the Eastern District of Virginia are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Freedman Announces First-Ever Settlement of False Claims Act Whistleblower Case Involving Grants for Restaurants and Similar Businesses Struggling During the COVID-19 PandemicRead the Press Release
ALBANY, NEW YORK – Feast American Diners LLC and Dawood “David” Beshay, the corporate owner and managing member of multiple Denny’s restaurants throughout Arizona and New York, including locations in Syracuse, Auburn, Camillus, Cicero, and Watertown, will pay $2 million to resolve allegations that Beshay falsely certified that Feast American Diners was eligible for a Restaurant Revitalization Fund (RRF) grant when he knew or should have known that his company owned and operated too many locations to qualify for the funding, announced United States Attorney Carla B. Freedman.
United States Attorney Freedman stated: “The Restaurant Revitalization Fund was meant to provide a financial lifeline to restaurants and other eligible entities that were struggling to stay afloat during the COVID-19 pandemic. Feast American Diners and Dawood Beshay are paying a steep price for falsely certifying their eligibility for these funds.”
Congress enacted the American Rescue Plan Act, in March 2021, as a continuation of the federal government’s efforts to provide relief to American individuals and businesses suffering the economic and public health effects of the pandemic. The Act allocated $28.6 billion toward an RRF, to be administered by the United States Small Business Administration (SBA), that could grant qualifying restaurants and other “eligible entities” monetary awards equal to revenue losses caused by the pandemic. Any restaurant that owned or operated more than 20 locations as of March 13, 2020 was not eligible for an RRF grant.
In April 2021, SBA released guidelines for completing RRF applications. The guidance reiterated that an entity was not an “eligible entity” if it owned or operated more than 20 locations as of March 13, 2020. At various points throughout the guidance, SBA explained that a restaurant was in “operation” if it was “making sales.”
In the settlement agreement, Feast American Diners and Beshay admit, acknowledge, and accept responsibility for the following facts: In May 2021, Beshay applied for an RRF grant on behalf of Feast American Diners, in the amount of $928,554. One of the questions on the application asked whether Feast American Diners owned or operated more than 20 locations as of March 13, 2020, to which Feast American Diners responded “no.” That same question indicated that an applicant who responded “yes” would not be eligible for the grant. Later in the application, Beshay affixed his initials next to the following statement: “The Applicant, together with its affiliates, does not own or operate more than 20 locations.” In fact, Feast American Diners owned 21 Denny’s locations as of March 13, 2020 and each of those locations made sales that day, facts that Beshay acknowledges that he should have known.
“Those who provide false information for the purpose of receiving and retaining SBA program funds meant for eligible small businesses will be held accountable,” said SBA Office of Inspector General (OIG) Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Today’s settlement sends a strong message that those responsible will be brought to justice. I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
The investigation began in December 2022, when a whistleblower filed a qui tam complaint under seal in the United States District Court for the Northern District of New York. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. Pursuant to the settlement agreement, the relator will receive $200,000 of the settlement.
The investigation and settlement were the result of a coordinated effort between the United States Attorney’s Office for the Northern District of New York, SBA-OIG, and SBA’s Office of General Counsel. The United States was represented by Assistant United States Attorney Adam J. Katz.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the federal government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Postal Service Employee Convicted of Theft of Postal Money Orders and Wire FraudRead the Press Release
BOSTON – A U.S. Postal Service (USPS) employee was convicted today by a federal jury in Boston of embezzling over $90,000 and fraudulently obtaining unemployment benefits.
Jamesa Rankins, 27, of Brockton, was convicted of one count of theft of government money and three counts of wire fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Feb. 2, 2024. In July 2022, Rankins was indicted by a federal grand jury.
“The public’s trust and confidence in our government is eroded when federal employees abuse their positions for personal gain. That is exactly what happened in this case. Ms. Rankins exploited her position to embezzle nearly $100,000 in money orders from her employer, the U.S. Postal Service, at the same time she was trying to fleece taxpayers by fraudulently claiming unemployment benefits,” said Acting United States Attorney Joshua S. Levy. “Today’s guilty verdict should be a stern warning to all who contemplate scamming the government – you will be identified, prosecuted and held accountable.”
“The Special Agents of the U.S. Postal Service Office of Inspector General are committed to maintaining the integrity of the Postal Service and its personnel. When a Postal Service employee abuses their position and decides to break the public’s trust, USPS OIG Special Agents will work tirelessly with their law enforcement partners to bring those responsible to justice. The dedicated work of Postal Service employees should never be overshadowed by those who compromise their integrity for personal gain. The USPS OIG is thankful for the great relationships we have developed with our law enforcement partners and with the District of Massachusetts U.S. Attorney’s Office,” said Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Field Office.
“Jamesa Rankins violated the public trust placed in her as a U.S. Postal Service employee by fraudulently collecting unemployment insurance while she was employed by the U.S. Postal Service. Rankins stole taxpayer funds intended for those Americans who lost their job due to the COVID-19 pandemic. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Jonathan Mellone, Special Agent-in-Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General.
Rankins began working for USPS around 2016, most recently as a Sales & Service Distribution Associate at the Montello Post Office in Brockton. In this role, Rankins had the ability to generate postal money orders, including replacement money orders. During the relevant period, customers could obtain replacement money orders without paying any additional fees if the original money orders were lost, damaged or erroneous. Rankins issued over $90,000 worth of replacement money orders to another individual where the original money orders were not erroneous and had not been lost or stolen. On at least one occasion, Rankins personally negotiated one of the replacement money orders at a check cashing business.
Rankins also applied for and obtained unemployment assistance from the Massachusetts Division of Unemployment Assistance despite being employed by USPS and thus being ineligible to receive unemployment assistance.
The charge of theft of government money provides a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, USPS OIG SAC Modafferi and DOL OIG SAC Mellone made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of the Public Corruption & Special Prosecutions Unit and Assistant U.S. Attorney Evan Panich of the Criminal Division are prosecuting the case.
Two Sentenced for Roles in Wide-Ranging Drug ConspiracyRead the Press Release
BOSTON – Two men were sentenced today in federal court in Worcester for their participation in a wide-ranging fentanyl, heroin, crack and cocaine trafficking conspiracy.
Adiangel Paredes, 37, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to 135 months in prison and five years of supervised release. In October 2022, Paredes was convicted by a federal jury of one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 500 grams or more of cocaine and 28 grams or more of cocaine base (commonly known as crack cocaine).
Jonathan Villot, 32, was sentenced by Judge Hillman to five years in prison and three years of supervised release. In March 2023, Villot pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine.
Following a fatal fentanyl overdose in September 2018, an investigation began into a drug trafficking organization in the Fitchburg area. Intercepted communications, surveillance and controlled purchases identified Paredes as a fentanyl, heroin, and cocaine supplier and Villot as a cocaine distributor.
Between September 2018 and November 2019, Paredes conspired to distribute fentanyl, heroin, and cocaine as well as a fentanyl and heroin mixture. Nearly 850 grams of the fentanyl and heroin mixture supplied by Paredes in three controlled purchases was seized during the investigation. In addition, Paredes is responsible for distributing an additional 1.3 kilograms of fentanyl, 2.6 kilograms of cocaine and at least 550 grams of a fentanyl and heroin mixture.
Between January and July 2020, Villot distributed cocaine to a cooperating witness on three occasions. For two of those deals, Villot sent co-conspirator Ivan Torres to deliver the cocaine. Torres pleaded guilty to the indictment and was sentenced in September 2023 to 37 months in prison and three years of supervised release. In addition to the sales to the cooperating witness, Villot is responsible for distributing an additional two kilograms of cocaine in February 2020.
Over the course of the investigation, over 1.8 kilograms of a heroin and fentanyl mixture, over 3.6 kilograms of cocaine and over 50 grams of crack cocaine were seized, as well as a stolen, loaded handgun, drug manufacturing equipment and over $376,000.
The defendants are the 16th and 17th to be sentenced in this case. All 18 defendants have been convicted – either by guilty plea or jury conviction following trial. The remaining defendant is scheduled to be sentenced on Nov. 16, 2023.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. The Fitchburg and Lunenburg Police Departments and U.S. Postal Inspection Service provided valuable assistance. Assistant U.S. Attorneys Alathea Porter and Sarah Hoefle of the Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Two Men Sentenced to Multiple Years in Federal Prison for Tampering with WitnessesRead the Press Release
Two Tulsa men were sentenced to federal prison last week for tampering with witnesses who were slated to testify in federal court proceedings, announced U.S. Attorney Clint Johnson.
On October 25, 2023, U.S. District Judge Raul M. Arias-Marxuach sentenced Derius Donovan Ledet, 33, to 84 months imprisonment followed by 3 years of supervised release. Judge Arias-Marxuach also sentenced Ledet’s co-defendant, Ulysses Semion Washington, 35, to 108 months imprisonment followed by 3 years of supervised release on October 26, 2023.
“The integrity of our justice system is of the utmost importance. The U.S. Attorney’s Office will not tolerate any act that seeks to obstruct the federal court process,” said U.S. Attorney Clint Johnson.
According to court documents, on March 23, 2022, Ledet, who was being held on federal charges, called Washington several times. Ledet instructed Washington to, “put in some footwork” to prevent two witnesses from communicating with law enforcement about the case and to prevent their testimony in court proceedings. Ledet further told Washington to pay off the witnesses with money obtained from selling one of Ledet’s cars.
Washington offered the witnesses money to write affidavits that they would not cooperate in Ledet’s pending case. Both witnesses were subpoenaed to make appearances in federal proceedings, but neither showed.
Ledet pled guilty for his role in the witness tampering in July of 2022 and Washington elected to proceed to trial. Prior to trial, Washington continued his attempts to contact one of the witnesses involved in attempt to persuade them to not show. Washington entered a plea to witness tampering on the first day of trial.
Ledet and Washington will remain in custody pending transfer to a U.S. Bureau of Prisons facility. The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Justin G. Bish prosecuted the case.
Three more sentenced in Laredo drug trafficking conspiracyRead the Press Release
LAREDO, Texas – Three Laredo residents have been sentenced for their roles in a conspiracy to distribute cocaine and launder money, announced U.S. Attorney Alamdar S. Hamdani.
Cesar Mendiola, 57, Rafael Rodriguez, 63, and Jose Angel Rodriguez III, 34, each pleaded guilty June 7.
U.S. District Judge Lee H Rosenthal has now imposed a 151-month term of imprisonment for Mendiola, while Rodriguez III and Rafael Rodriguez received 12 and 24 months, respectively. Each must also serve at least three years of supervised release following their sentences. At the hearing, the court heard additional evidence including this drug trafficking organization’s ties to the CDN cartel. In handing down the prison terms, Judge Rosenthal also ordered Mendiola to forfeit $25,400 of drug proceeds.
Elizardo Vasquez Jr., 31, was previously sentenced to 32 months in federal prison for his involvement. Another man - Jose Angel Rodriguez Jr., 60 - also pleaded guilty and will be sentenced at a later date.
Throughout the course of this investigation, authorities seized nearly 10 kilograms of cocaine and over $147,000 in drug proceeds.
The investigation revealed brothers Rodriguez Jr. and Rafael Rodriguez would receive kilograms of cocaine from a source in Mexico and provide that cocaine to Mendiola for further distribution in and around Laredo. Rodriguez III kept records of transactions and drug proceeds for his father, Rodriguez Jr.
Mendiola and Rafael Rodriguez have been and will remain in custody while Rodriguez III, was permitted to remain on bond.
The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of the Webb County District Attorney’s Office, the Webb County Sheriff’s Office and the United Independent School District Police Department. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Anthony J. Evans and Brian Bajew prosecuted the case.
Three Convicted by Jury of Housing Authority Kickback ConspiracyRead the Press Release
SOUTH BEND – Tonya Robinson, 60 years old, Albert Smith, 47 years old, and Douglas Donley, 42 years old, were each found guilty of various federal felony charges following an eight-day jury trial presided over by United States District Court Senior Judge Jon E. DeGuilio, announced United States Attorney Clifford D. Johnson.
The jury found Robinson, Smith, and Donley guilty of conspiracy to commit bank fraud and wire fraud. Donley was also found guilty of a single count of bank fraud. Robinson and Smith were found guilty of 6 counts of bank fraud, one count of wire fraud along with a single count of federal program theft. Smith was also found guilty of an additional wire fraud count. Three counts were dismissed against Donley during the trial and he was acquitted of four counts while Robinson was acquitted of one count.
Robinson, Smith, and Donley are all scheduled for sentencing on February 29, 2024. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
This case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development, Office of Inspector General, and the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant United States Attorneys Luke N. Reilander, Joel Gabrielse, and Jerome W. McKeever.
Three Central Georgians Sentenced to Prison for Illegally Possessing FirearmsRead the Press Release
MACON, Ga. – Three Central Georgia residents with lengthy criminal histories were sentenced this week to federal crimes in three separate Project Safe Neighborhoods cases targeting convicted felons with guns.
Raikwon Christian, 27, of Macon, was sentenced to serve 120 months in prison to be followed by three years of supervised release on Oct. 31; Trayon Brown, 35, of Macon, was sentenced to serve 71 months in prison to be followed by three years of supervised release on Oct. 31; and Gabriel Brown, 43, of Warner Robins, Georgia, was sentenced to serve 70 months in prison to be followed by three years of supervised release on Oct. 30 by Chief U.S. District Judge Marc Treadwell. The defendants each previously pleaded guilty to one count of possession of a firearm by a convicted felon. The defendants are not eligible for parole.
“Convicted felons caught with firearms—especially assault weapons and large capacity magazines—pose a danger in our communities and will face federal prosecution for illegally possessing them,” said U.S. Attorney Peter D. Leary. “These Project Safe Neighborhoods cases are all the result of strong collaboration between many local, state and federal law enforcement partners working to reduce gun violence and make our communities safer.”
“ATF’s mission is to deny criminals access to firearms and protect the rights of law-abiding citizens. When offenders illegally possess firearms that can be used against our citizens, our children and our community, ATF takes this very seriously,” said the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Assistant Special Agent in Charge Beau Kolodka.
According to court documents in the Christian case, Christian reported to the Georgia Department of Community Supervision (DCS) Office in Macon on Dec. 13, 2021, and was arrested on an active probation warrant. Before entering the building, Christian placed a bag behind a trashcan outside the building. The bag held a 9mm semi-automatic pistol, along with a cell phone and Christian’s identification. Agents also found recent posts of Christian on Facebook holding AR-15 and AK-47 style rifles with extended magazines. A search warrant was executed at 1367 Sanford Avenue in Macon on Dec. 14, where the photos were taken. Five firearms were located inside the residence, including a revolver with an obliterated serial number, a stolen and loaded semi-automatic pistol and a semi-automatic pistol equipped with a large capacity magazine. In addition, agents found illegal drugs—most already packaged for distribution—plus digital scales, cells phones and plastic baggies. A review of the property’s own security footage showed numerous suspected drug transactions. Agents later found the AK-47 rifle Christian held in social media posts hidden in a vent. The firearm was loaded and equipped with a magazine containing 27 rounds of ammunition.
According to court documents in the Trayon Brown case, a Bibb County Sheriff’s Office deputy attempted to stop a vehicle on Napier Avenue in Macon for a traffic violation on June 8, 2022. Brown was driving; instead of pulling over, Brown turned onto a side street and jumped out of the vehicle while it was still moving and it collided with a sign. Brown ran away with the deputy in pursuit; the officer was injured jumping a chain-linked fence chasing after the defendant. The deputy found Brown hiding in some bushes near a private residence with a semi-automatic pistol next to him. Brown’s car contained methamphetamine, marijuana, digital scales, several additional small bags and a bag of ammunition. Brown has two prior robbery by force convictions in Bibb County, Georgia, Superior Court.
According to court documents in the Gabriel Brown case, Brown and three people were inside his home on Beech Drive in Oglethorpe, Georgia, when several gunshots were fired into the home and one person was struck with shotgun pellets. Brown, who has three prior felonies, grabbed his Taurus handgun and fired four to five shots at a vehicle speeding away. Brown then went to grab another pistol. Emergency responders recognized Brown as a felon. Brown turned over three firearms inside his home: a loaded 9mm semi-automatic pistol with an extended magazine; a fully loaded and chambered 5.56 caliber semi-automatic pistol fitted with a laser; and one fully loaded and chambered .45 ACP caliber semi-automatic pistol. Agents with GBI’s Southwest Regional Drug Enforcement Office executed a search warrant and found a 9x19 caliber semi-automatic pistol and ammunition.
These cases are being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Raikwon Christian and the Trayon Brown cases were both investigated by ATF and the Bibb County Sheriff’s Office (BCSO).
The Gabriel Brown case was investigated by ATF, the GBI Region 3 Field Office, the GBI’s Southwest Regional Drug Enforcement Office, the Macon County Sheriff’s Office and the Montezuma Police Department.
Assistant U.S. Attorney Sean Deitrick prosecuted the cases for the government.
Texas Man Sentenced to 14 Years in Federal Prison for Enticement of a MinorRead the Press Release
MIDLAND, Texas – A Kingsville man was sentenced in a federal court in Midland to 168 months in prison for enticement of a minor.
According to court documents, Joel Garcia Elizondo Jr., 34, discussed engaging in multiple sexual acts with a person he believed was a 15-year-old girl over various social media applications. Elizondo agreed to meet the girl outside an Odessa middle school one evening. Once Elizondo arrived outside the school, he was immediately taken into custody by Texas Department of Public Safety (TX DPS) Criminal Investigation Division (CID) special agents and Odessa Police Department officers. On Aug. 1, a federal jury in Midland found Elizondo guilty of the charge.
“These investigations are crucial to protecting children across our district, and the nation, as they identify and apprehend adults who are willing to meet children online for sex,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I appreciate the proactive efforts of our law enforcement partners who potentially prevented a hands-on sexual assault of a child by this defendant.”
TX DPS, the Odessa Police Department and Midland County Sheriff’s Office investigated the case.
Assistant U.S. Attorneys Joe Mahoney and John Fedock prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Tenderloin Dealer Pleads Guilty to Six Drug Offenses, Including Conspiracy to Distribute Fentanyl and Possession with Intent to Distribute Fentanyl, Heroin, Cocaine, and MethamphetamineRead the Press Release
SAN FRANCISCO – Melvin Alexis Diaz Arteaga (Diaz), a resident of Oakland, has pleaded guilty to six drug charges stemming from his sale of—and intent to sell—fentanyl, methamphetamine, heroin, and cocaine in the Tenderloin district of San Francisco, announced United States Attorney Ismail J. Ramsey. Diaz’s guilty plea was accepted by the Hon. Charles R. Breyer, Senior United States District Judge, on October 26, 2023.
In his plea agreement, Diaz, 28, admitted he possessed 6.6 kilograms—that is, nearly 15 pounds—of fentanyl, along with lesser quantities of methamphetamine, heroin, cocaine, and other controlled substances, all of which he intended to sell, when he was arrested outside an apartment in Berkeley, California, on November 16, 2022.
According to the plea agreement, Diaz also admitted using the same Berkeley apartment to manufacture and store significant quantities of drugs for sale in the Tenderloin, among other locations. He also admitted he sold, or arranged the sale of, fentanyl and methamphetamine to an undercover officer of the San Francisco Police Department (SFPD) on four separate occasions between September 16, 2022, and October 5, 2022.
Finally, pursuant to the plea agreement, Diaz agreed to forfeit, among other things, more than $50,000 in cash that officers seized on the night of his arrest, including nearly $42,000 found in Diaz’s bedroom. Diaz acknowledged these funds either were, or were derived from, drug proceeds, or that they were used, or were intended to be used, to commit or facilitate his drug trafficking crimes.
Diaz and two co-defendants were indicted by a federal grand jury on January 5, 2023. Diaz was charged in six of the eight counts alleged in the indictment:
Count
Charge
Statute(s)
Statutory Maximum Prison Term
1
Conspiracy to Distribute and Possess with Intent to Distribute 400 Grams or More of Fentanyl
21 U.S.C. §§ 846 and 841(a)(1), (b)(1)(A)(vi)
Life
2
Possession with Intent to Distribute 400 Grams or More of Fentanyl
21 U.S.C. § 841(a)(1), (b)(1)(A)(vi)
Life
3
Possession with Intent to Distribute 100 Grams or More of Heroin
21 U.S.C. § 841(a)(1), (b)(1)(B)(i)
40 years
4
Possession with Intent to Distribute 500 Grams or More of Cocaine
21 U.S.C. § 841(a)(1), (b)(1)(B)(ii)
40 years
7
Possession with Intent to Distribute and Distribution of 50 Grams or More of Methamphetamine
21 U.S.C. § 841(a)(1), (b)(1)(B)(viii)
40 years
8
Possession with Intent to Distribute and Distribution of Methamphetamine
21 U.S.C. § 841(a)(1), (b)(1)(C)
20 years
Pursuant to his plea agreement, Diaz pleaded guilty to all six of the counts in which he was charged. In addition to the penalties listed above, as part of any sentence, the court may order the defendant to pay a fine of up to $10 million per count on Counts 1 and 2; $5 million per count on Counts 3, 4, and 7; and $1 million on Count 8. The defendant also faces a mandatory additional term of supervised release of five years on Counts 1 and 2; four years on Counts 3, 4, and 7; and three years on Count 8. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Diaz has been in custody since he was arrested on November 16, 2022. Judge Breyer has scheduled Diaz’s sentencing hearing for February 21, 2024.
Assistant United States Attorney Nicholas M. Parker is prosecuting the case with the assistance of Paralegal Specialist Jessie Chelsea. The prosecution is the result of an investigation by the Drug Enforcement Administration, with assistance from SFPD.
Three Puerto Rican Men Plead Guilty to Cocaine ConspiracyRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Pedro Ramos Ramirez, 28, Gerald Cruz, 26, and Johnny Arias Rodriquez, 28, all of Puerto Rico, pleaded guilty before Magistrate Ruth Miller and Chief District Judge Robert Molloy to conspiracy to possess with intent to distribute cocaine onboard a vessel subject to the jurisdiction of the United States.
According to court documents, on December 29, 2022, Customs and Border Protection Air and Marine Operations interdicted a go-fast vessel with the defendants onboard. The vessel was operating without navigational lights north of Stumpy Bay, St. Thomas. The officers also observed a flashing light onboard the vessel and a simultaneous flashing light on the shoreline of Stumpy Bay. While pursuing the vessel, Ramos Rivera, the caption of the vessel, took sharp, erratic turns to evade the officers while Cruz and Arias Rodriquez tossed bales of cocaine from the vessel into the oceans. The vessel was disabled and the bales which totaled 75 kilograms of cocaine were recovered from the ocean. For their convictions, the defendants face a possible mandatory sentence of 10 years to life imprisonment and a maximum fine of $10,000,000.00. A district judge will determine the appropriate sentence after considering the United States Sentencing Guidelines and other sentencing factors.
This case was investigated by U.S. Customs and Border Protection, Homeland Security Investigations, and the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Everard E. Potter.
Syracuse Man Sentenced to 151 Months for Possessing and Intending to Distribute Fentanyl and Unlawfully Possessing a FirearmRead the Press Release
SYRACUSE, NEW YORK – Jose Cintron, age 26, of Syracuse, was sentenced today to serve 151 months (over 12 years) in federal prison for his convictions for possessing with intent to distribute fentanyl and unlawfully possessing a firearm as a convicted felon, announced United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his previous guilty plea, Cintron admitted that on July 5, 2022, he possessed over 1,700 grams of a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance, inside a relative’s apartment and his vehicle, both of which were in Syracuse, New York. Cintron intended to distribute the fentanyl to others. Cintron also admitted that on that same date he knowingly possessed in his apartment a loaded 9 mm handgun and 4 rounds of 9 mm caliber ammunition. A prior felony conviction for criminal possession of a controlled substance prevented Cintron from legally possessing a firearm in New York.
United States District Judge Glenn T. Suddaby also sentenced Cintron to serve a 5-year term of post-release supervision and ordered him to pay a $200 special assessment.
This case was investigated by the United States Drug Enforcement Administration (DEA), with assistance from the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Onondaga County District Attorney’s Office, the Syracuse Police Department, and the Metro-Jefferson Drug Task Force and was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
Strawberry Point Man Convicted of Firearm PossessionRead the Press Release
A man who was found in a park after hours with a short-barreled shotgun pled guilty today in federal court in Cedar Rapids.
Scott Wesley Timmerman, age 56, from Strawberry Point, Iowa, was convicted of one count of being a felon in possession of a firearm.
In a plea agreement, Timmerman admitted that he was in a state park after it had closed, and had a short-barreled shotgun in his vehicle. Timmerman admitted that due to a prior felony conviction he was not allowed to legally possess firearms. The vehicle was searched by law enforcement officers after Timmerman was arrested for unrelated charges.
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.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Timmerman remains in custody of the United States Marshal pending sentencing. Timmerman faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick Reinert and was investigated by the Delaware County Sheriff’s Office, Clayton County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-02054. Follow us on Twitter @USAO_NDIA.
St. Joseph Man Sentenced for Heroin Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute heroin and for illegally possessing firearms.
Franklin T. Hicks Jr., also known as “Frankie,” 43, was sentenced by U.S. District Judge Greg Kays to 10 years and six months in federal prison without parole.
On May 31, 2022, Hicks pleaded guilty to participating in a conspiracy to distribute one kilogram or more of heroin in the St. Joseph area from Sept. 1, 2019, to March 26, 2021, and to two counts of possessing a firearm in furtherance of a drug-trafficking crime.
According to court documents, Hicks is directly responsible for distributing at least 115.5 grams of heroin, which is over 1,150 potentially lethal, 0.1-gram “doses” of the drug, and was involved in a conspiracy that moved kilograms of heroin.
Hicks was arrested outside of a hotel in St. Joseph on Jan. 22, 2021. He was in possession of 35.8 grams of heroin and $2,687 in cash. Officers also found a loaded Rock Island Armory .380-caliber handgun under the driver’s seat of his car and a Ruger 9mm handgun in the glovebox.
Hicks is the third and final defendant to be sentenced in this case.
Co-defendant Roderick A. Hughes, 48, was sentenced on Oct. 10, 2023, to 17 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy and to possessing a firearm in furtherance of a drug-trafficking crime. According to court documents, Hughes is responsible for distributing at least 461.9 grams of heroin, which is over 4,600 potentially lethal, 0.1-gram “doses” of the drug.
Law enforcement officers executed a search warrant at Hughes’s apartment on Feb. 23, 2021. Officers found a silver revolver on the kitchen table. They also found a loaded Glock 9mm handgun on a nightstand in the bedroom, a Stoeger 9mm handgun and a Jennings Bryco 9mm handgun on a shelf in the bedroom, and a black safe under the bed that contained 23.4 grams of heroin and $4,703 in cash. Officers also searched the garage and found three plastic bags with a total of 96.3 grams of heroin hidden in the rafters.
Co-defendant Harvey E. Johnson, 50, of Kansas City, Mo., was sentenced on Oct. 26, 2023, to 12 years in federal prison without parole after pleading guilty to his role in the heroin-trafficking conspiracy. Johnson was in possession of approximately 51 grams of heroin when he was arrested on March 16, 2021, after fleeing from law enforcement officers in a high-speed car chase. According to court documents, Johnson is responsible for distributing at least 2.835 kilograms of heroin, which is over 28,000 potentially lethal, 0.1-gram “doses” of the drug.
Johnson was on state parole following his conviction on drug charges during his involvement in the drug-trafficking conspiracy.
This case was prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the St. Joseph, Mo., Police Department, the Buchanan County, Mo., Sheriff’s Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Shreveport Man with Numerous Felony Convictions Sentenced to 12 + Years in Federal PrisonRead the Press Release
SHREVEPORT, La. – United States Attorney Brandon B. Brown announced that Odis L. Taylor, 33, of Shreveport, Louisiana, has been sentenced by United States District Judge Donald E. Walter to 145 months (12 years, 1 month) in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm.
According to information presented in court, on January 26, 2021, Taylor was found in possession of a Glock Model 23 Gen 4, .40 caliber pistol, near the intersection of Mable and Darien Streets in Shreveport. Shreveport Police Department (“SPD”) officers responded to a call that day and found fourteen (14) .40 caliber shell casings near a store on Mable Street.
On February 4, 2021, Taylor was arrested by SPD officers near Bringhurst Drive in Shreveport and found in possession of a vehicle with a Glock Model 23 Gen 4, .40 caliber pistol located in plain view partially under the driver’s seat. A search warrant was executed by law enforcement officers and inside Taylor’s vehicle was a box of ammunition, an extra magazine, and a smartphone.
The firearm that was seized from Taylor was test fired by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and placed into the National Integrated Ballistic Information Network (NIBIN) system. The NIBIN system found the firearm to match the .40 caliber shell casings which were recovered on January 26, 2021, from the intersection of Mable and Darien Streets. Testing and analysis performed on the recovered firearm found Taylor’s DNA on the firearm.
Taylor is a convicted felon, having numerous felony convictions in Caddo Parish, including first degree robbery in 2010, attempted possession of a firearm by a convicted felon in 2014, and domestic abuse battery second offense and cruelty to juveniles in 2019. He knew that as a convicted felon he was prohibited from possessing any firearm or ammunition. Taylor was charged in an indictment on March 23, 2022, and pleaded guilty on January 24, 2023, to two counts of felon in possession of a firearm.
The case was investigated by ATF and Shreveport Police Department and prosecuted by Assistant United States Attorney Cytheria D. Jernigan.
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. PSN is 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Sharon Resident Pleads Guilty to Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH, PA – Kayla Fair was convicted of conspiring to distribute cocaine, United States Attorney Eric G. Olshan announced today.
Fair, age 36, of Sharon, Pennsylvania, pled guilty before United States District Judge Cathy Bissoon. Fair pled guilty to conspiring to distribute cocaine in October 2021. Judge Bissoon scheduled sentencing to occur on March 19, 2024, at 11:00 a.m.
The law provides for a maximum total sentence for Fair of up to 20 years in prison and a fine of up to $1,000,000. Under the Under States Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Mercer County Drug Task Force, the Pennsylvania Office of Attorney General, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the conviction in this case.
Sex Offender Sentenced to 87 Months for Second Child Pornography ConvictionRead the Press Release
MOBILE, AL – Larry Dale Barlow, 30, has been sentenced to 87 months in prison for one count of Possession of Child Pornography. Barlow entered a guilty plea to this offense on April 19, 2023.
According to court documents filed in connection with his guilty plea, in December 2012 Barlow was convicted in federal court in Mobile of receipt and distribution of child pornography. Barlow was sentenced on May 20, 2013 in that case to 120 months in prison and a lifetime term of supervised release.
On March 7, 2022, Barlow’s probation officer conducted a home visit at Barlow’s residence in Mobile. The probation officer located a cell phone, which Barlow was not permitted to possess. The phone was seized by probation officer. Barlow was interviewed and admitted to receiving and viewing videos of child pornography. The phone was examined and found to contain 171 images and 113 videos of child pornography. Images included depictions of prepubescent children.
Senior United States District Judge Callie V.S. Granade imposed an 87-month sentence of incarceration and a 10-year term of supervised release upon his discharge from prison. Senior Judge Granade further ordered that Barlow pay $100 in a special assessment and $3,000 in restitution. Barlow will be required to register as a sex offender when he is released from prison and is to have no contact with minors.
The United States Probation Office and Federal Bureau of Investigation (FBI) investigated this case. Assistant United States Attorney Kacey Chappelear 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 the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit https://www.justice.gov/psc/publications-resources
Senior Public Relations Firm Executive Pleads Guilty to Defrauding His Employers of Millions of DollarsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ANDREW GARSON, a public relations executive, pled guilty today in Manhattan federal court in connection with a scheme to defraud his former employers of millions of dollars. Pursuant to his plea agreement with the Government, GARSON agreed to pay $3,754,068 in restitution to the victims of his crime. GARSON pled guilty before U.S. District Judge Laura Taylor Swain and is scheduled to be sentenced on February 28, 2024.
U.S. Attorney Damian Williams said: “Andrew Garson betrayed his employers time and time again, causing millions of dollars in losses, and when he no longer had an employer to defraud, he applied for and received thousands of dollars in unemployment benefits to which he was not entitled. Garson’s fraud scheme was multifaceted and manipulative, and he has now admitted to greedily exploiting his employers’ trust to line his own pockets.”
According to the allegations in the Indictment and other filings and statements made in court:
Between approximately 2014 and 2018, GARSON was employed as an executive at two different marketing public relations agencies located in New York, New York, the first between approximately 2014 and January 2018 (“PR Firm-1”), and the second between approximately January 2018 and November 2018 (“PR Firm-2”). In his respective roles at those two firms, GARSON was responsible for working directly with clients, coordinating various marketing and public relations campaigns, and managing vendor relationships in connection with such campaigns. In or about July 2018, GARSON was named a “40 Under 40” public relations executive by PR Week Magazine. However, GARSON engaged in a scheme to lie to his two employers for years, causing his employers millions of dollars in losses.
One such series of misrepresentations by GARSON resulted in the unauthorized payment by PR Firm-2 of expenses owed to vendors in connection with marketing campaigns led by GARSON while employed at PR Firm‑1. Over the course of GARSON’s first several months of employment at PR Firm-2, GARSON lied to certain vendors, stating that PR Firm-2 had agreed to cover expenses still owed to those vendors related to GARSON’s prior projects at PR Firm-1. In fact, PR Firm-2 did not authorize the payment of those expenses. In order to cause PR Firm-2 to effect payment of these expenses, GARSON created fraudulent invoices falsely claiming that the vendors were due payment for work performed on PR Firm-2 projects. In this fashion, GARSON caused PR Firm-2 to pay substantial expenses to vendors with which GARSON had worked on projects while employed at PR Firm-1.
In addition, while employed at PR Firm-1, GARSON used his corporate credit card for unauthorized personal expenses. For example, in or about August 2017, GARSON purchased a luxury watch using his PR Firm-1 corporate credit card for approximately $14,000, claiming that the expense related to event production for a client marketing event. GARSON later sold the watch to a New Jersey jewelry store in or about December 2018 for approximately $4,000. GARSON deposited the money that he earned from the sale of the watch into his personal bank account.
GARSON similarly defrauded PR Firm-2 with respect to the unauthorized use of his corporate credit card. For example, GARSON submitted expense reports to PR Firm-2 in which he claimed the same expense for reimbursement on more than one occasion, causing PR Firm-2 to reimburse GARSON twice for the same expenditure.
After uncovering certain aspects of the fraud scheme perpetrated by GARSON, PR Firm-2 terminated GARSON in or about November 2018. While applying for unemployment insurance program benefits from the New York State Department of Labor following his termination, GARSON lied regarding the circumstances surrounding his separation from PR Firm-2. As a result of his misrepresentations, between in or about December 2018 and in or about March 2019, GARSON received a total of over $5,000 in unemployment insurance benefits to which he was not entitled.
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GARSON, 41, of Rockville Centre, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of U.S. Postal Inspection Service.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Timothy V. Capozzi is in charge of the prosecution.
Sarasota Man Charged with Threatening Jewish Organization in New YorkRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of a criminal complaint charging Deep Alpesh Kumar Patel (21, Sarasota) with transmitting an interstate threat to injure. If convicted, Patel faces a maximum penalty of five years in federal prison.
According to the complaint affidavit, on October 21, 2023, Patel left a threatening voicemail at the World Jewish Congress in New York City identifying himself by name and screaming, among other expletives, “If I had a chance, I would kill every single one of you Israelis. Every single one of you! Cause mass genocide of every single Israeli.”
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, with valuable assistance from the Florida Department of Law Enforcement, the Sarasota Police Department, and the Sarasota County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Risha Asokan.
Download Criminal ComlpaintReadout of the Justice Department Hosting the First Day of the 2023 International Counter Ransomware Initiative SummitRead the Press Release
Yesterday, the White House hosted representatives from nearly 50 countries for the first day of the third annual International Counter Ransomware Initiative Summit at the Justice Department. The Summit is the largest international partnership dedicated to disrupting the broader ecosystem that fuels ransomware attacks.
In his opening remarks kicking off the Summit, Attorney General Merrick B. Garland underscored the strength and successes of international partnerships in disrupting ransomware threats as well as mitigating broader cybersecurity risks. The Attorney General discussed the efforts of the Justice Department and its international partners to dismantle and disrupt an international ransomware network known as the “Hive,” responsible for extorting and attempting to extort hundreds of millions of dollars from victims in the United States and around the world. The Attorney General also noted that in the wake of the Oct. 7th attacks in Israel, he directed the Justice Department to offer assistance to Israeli investigators and law enforcement partners to help “identify, investigate, and disrupt financial flows and other material support to Hamas – including in the form of cryptocurrency.” The delegation from Israel was able to join the Summit virtually.
Deputy Attorney General Lisa O. Monaco discussed the Department’s support for its Israeli partners and all of the international partnerships showcased at the Summit, stressing that these cross-border relationships are some of the most powerful tools the Justice Department has to disrupt the ransomware ecosystem and prevent attacks before they happen. She highlighted how these partnerships have led to synchronized and coordinated international operations that have imposed serious costs and consequences for malicious ransomware actors. In the past year, these operations have included the takedown of two of the largest online criminal marketplaces – BreachForums and Genesis Market – within two weeks of each other as well as the dismantlement of several cryptocurrency mixers and exchanges responsible for the laundering of millions of dollars in ransomware proceeds.
The Summit continues through today, with members discussing areas for further coordination against increasingly sophisticated ransomware attacks.
Pittsburgh Resident Pleads Guilty to Possessing a Firearm After a Prior Felony ConvictionRead the Press Release
PITTSBURGH, PA – Isaiah Wise was convicted of possessing a firearm after a prior felony conviction, United States Attorney Eric G. Olshan announced today.
Wise, age 23, of Pittsburgh, pled guilty before United States District Judge W. Scott Hardy. Wise pled guilty to possessing a firearm on December 4, 2021, after prior felony convictions for possession with intent to deliver fentanyl, possession of a firearm by a prohibited person, and endangering the welfare of children. Judge Hardy scheduled sentencing to occur on March 1, 2024, at 11:30 a.m.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania Office of Attorney General, and the Allegheny County Sheriff’s Office conducted the investigation leading to the conviction in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice 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.
Not Invisible Act Commission Transmits Recommendations to Federal Government to Address Missing and Murdered Indigenous Peoples and Human TraffickingRead the Press Release
The Not Invisible Act Commission (NIAC), a cross-jurisdictional advisory committee composed of law enforcement, Tribal leaders, federal partners, service providers, family members of missing and murdered individuals, and survivors, today transmitted its congressionally mandated recommendations to the Justice Department, Department of the Interior, and the U.S. Congress. Federal responses to the Commission’s recommendations are due within 90 days.
The Commission was created by the Not Invisible Act, sponsored by Secretary of the Interior Deb Haaland during her time in Congress. Its mandate was to develop recommendations on actions the federal government can take on six focused topics to help combat violent crime against Indigenous people and within Indian lands, and to address the epidemic of missing persons and the murder and trafficking of American Indian and Alaska Native peoples, as specified under the law.
“These recommendations will play an important role in our shared work to address the violence Tribal communities face,” said Attorney General Merrick B. Garland. “I am grateful to the Commissioners for approaching this critical and difficult work with the urgency and thoughtfulness it deserves. The Justice Department is committed to working with the Department of Interior, Congress, and our state, local, and Tribal partners to address the Commission’s recommendations and respond to the public safety challenges facing American Indians and Alaska Natives.”
“I am so grateful to the members of the Not Invisible Act Commission for the time and effort they have given to this work and this report over the past two years. Indian Country will be safer, and lives will be saved, because of this Commission’s work,” said Secretary Haaland. “Everyone deserves to feel safe in their community. Crimes against Indigenous peoples have long been underfunded and ignored, rooted in the deep history of intergenerational trauma that has affected our communities since colonization. I look forward to reviewing the recommendations, which will help us continue to galvanize attention and resources toward these tragic epidemics.”
The recommendations received today will help further the Biden-Harris Administration’s work to advance and invest in public safety in Indian Country.
At the 2021 White House Tribal Nations Summit, President Biden signed Executive Order 14053 on Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, which directed the Departments of Justice, the Interior, and Health and Human Services to work with Tribal Nations and partners to build safe and healthy Tribal communities and to support comprehensive law enforcement, prevention, intervention and support services. Last year, the President signed the Violence Against Women Act Reauthorization Act of 2022 into law, which built on advancements from previous reauthorizations, included new provisions to address the crisis of Missing or Murdered Indigenous Peoples (MMIP) across the country, and re-enforced Tribal sovereignty by providing means for Tribes to address the epidemic of violence within their lands and communities.
At the 2022 White House Tribal Nations Summit, the Interior Department’s Bureau of Indian Affairs (BIA) and the FBI announced an agreement to provide for the effective and efficient administration of criminal investigations in Indian Country. The agreement specified that the BIA Office of Justice Services (BIA-OJS) and the FBI would cooperate on investigations, share information and investigative reports, and establish written guidelines outlining jurisdiction and investigative roles and responsibilities. The agreement also requires that all BIA, FBI, and Tribal law enforcement officers receive training regarding trauma-informed, culturally responsive investigative approaches.
Secretary Haaland has traveled throughout the nation and internationally to highlight the need for coordination and collaboration on issues related to violence against Indigenous peoples. Within the first 100 days of the Biden-Harris Administration, Secretary Haaland created a new Missing and Murdered Unit within the BIA-OJS, which is providing leadership and direction for cross-departmental and interagency work involving missing and murdered Indigenous peoples. The NIAC’s recommendations will inform the Department’s efforts to evolve the MMU to address gaps within the BIA’s law enforcement program and across the federal government.
Last week, Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, and Associate Attorney General Vanita Gupta met with the Tribal Nations Leadership Council, including a Council member who serves as a Commissioner on the NIAC, and discussed a range of pressing issues impacting American Indian and Alaska Native people.
Attorney General Garland traveled to Alaska in August and visited Anchorage and the Village of Galena. Attorney General Garland met with Tribal leaders and representatives of Native Tribal organizations to discuss the public safety challenges that Alaska Native individuals and communities face and address the Justice Department’s continued efforts to work in partnership with Tribal communities to combat the MMIP crisis.
Secretary Haaland and Deputy Attorney General Monaco gave remarks at the first in-person plenary session of the Not Invisible Act Commission in February at the Department of the Interior in Washington, D.C.
In the past year, Associate Attorney General Gupta has held meetings with Tribal and Native leaders in Minnesota and Alaska. This month in Alaska, the Associate Attorney General spoke at the Alaska Federation of Natives annual convention and announced the launch of the Alaska Pilot Program, which empowers designated Tribes to exercise special Tribal criminal jurisdiction over non-Indians present in their Villages for certain crimes.
Since the establishment of the NIAC in 2020, the Justice Department has made strides in implementing systems aimed at preventing new instances of MMIP, locating individuals who are reported missing, and, where a crime has occurred, investigating and prosecuting those responsible. Earlier this summer, the Department launched a MMIP Regional Outreach Program. This program places attorneys and coordinators at U.S. Attorneys’ Offices across the United States to help prevent and respond to cases of missing or murdered Indigenous people.
Over the next 90 days, the Justice Department and the Department of the Interior will carefully consider the NIAC’s recommendations
North Stonington Woman Admits Trafficking Crystal MethRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JILL MULLIGAN, 43, of North Stonington, waived her right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to possession with intent to distribute methamphetamine.
According to court documents and statements made in court, in April and May 2023, the FBI’s Northern Connecticut Gang Task Force made three controlled purchases of crystal meth from Mulligan. On May 4, 2023, court authorized searches of Mulligan’s North Stonington residence and her vehicle revealed approximately 390 grams of crystal meth, and quantities of crack cocaine, LSD, and prescription pills. Mulligan was arrested on that date.
Judge Underhill scheduled sentencing for January 24, 2024, at which time Mulligan faces a maximum term of imprisonment of 20 years.
Mulligan is released on a $100,000 bond pending sentencing.
This investigation is being conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force, which includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney A. Reed Durham.
New Orleans Man Sentenced to Probation for Conspiracy to Commit Wire Fraud and Money LaunderingRead the Press Release
NEW ORLEANS – LANCE M. VALLO, age 38 and a resident of New Orleans, Louisiana, was sentenced today by U.S. District Court Judge Jane Triche-Milazzo to 36 months of probation with one year of home confinement after VALLO pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering, announced U.S. Attorney Duane A. Evans of the Eastern District of Louisiana.
As according to court documents, VALLO conspired with RYAN MULLEN, DUANE DUFRENE, DILLON ARCENEAUX, GRANT MENARD, and ZEB SARTIN to use a number of shell Louisiana companies with no assets to defraud a merchant cash company based in Georgia. MULLEN and DUFRENE helped establish ARCENEAUX, VALLO, MENARD, and SARTIN as the owners of existing corporations, MULLEN and DUFRENE then created fake vendor accounts for the corporations, and MULLEN, with the aid of another person, created falsified bank records for the companies. VALLO then used an alias to hold himself out to be a broker for the companies he helped create.
Through the aid of another broker, MULLEN supplied the victim merchant cash advance company with the fake vendor accounts and false bank records to obtain funding. The victim cash advance company approved the advances and began to electronically wire ARCENEAUX, VALLO, MENARD, and SARTIN millions of dollars in advances. ARCENEAUX, VALLO, MENARD, and SARTIN laundered a portion of the funds by paying MULLEN and DUFRENE percentages of the funds. ARCENEAUX, VALLO, MENARD, and SARTIN then closed their non-existent businesses before fully repaying the victim merchant cash advance company, resulting in overall losses of approximately $6.4 million. VALLO was responsible for approximately $876,000 in losses to the victim.
In addition to the sentence, VALLO was sentenced to restitution in the amount of $876,035.05 and a mandatory special assessment fee of $200.
U.S. Attorney Evans commended the special agents of the Federal Bureau of Investigation and IRS-Criminal Investigation for their handling of the matter. The case is being prosecuted by Assistant United States Attorneys Edward J. Rivera of the Financial Crimes Unit and Andre J. Lagarde of the Public Integrity Unit.
Meth trafficking in Billings sends Washington woman to prison for 10 yearsRead the Press Release
BILLINGS — A Washington woman was sentenced today to 10 years and one month in prison, to be followed by four years of supervised release, after she was caught while trying to flee law enforcement and admitted to trafficking methamphetamine in the Billings community, U.S. Attorney Jesse Laslovich said.
Lyzette Vargas, 41, of Spokane, Washington, pleaded guilty in June to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in September 2022, agents with the Eastern Montana High Intensity Drug Trafficking Area Task Force learned that Vargas was distributing large quantities of fentanyl pills in Billings. Law enforcement pulled over a vehicle Vargas was driving, but as the officer approached, Vargas switched seats with a passenger, who then sped away. A short time later, officers located the vehicle, which was abandoned. In a search of the area, law enforcement located Vargas, who tried to flee but was caught and arrested. Agents searched a bag Vargas had possessed and found it contained approximately 873 grams, which is almost two pounds, of meth.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case, The Eastern Montana High Intensity Drug Trafficking Area Task Force conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Man Who Opened Fire on ATF Agents and Lakeland Police Officers After Highspeed Chase on I-4 Pleads GuiltyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Francisco Cabrera (28, Dover) today pleaded guilty to three counts of armed robbery, use of a firearm in furtherance of a crime of violence, armed carjacking, and possessing a firearm and ammunition as a convicted felon. Cabrera faces a minimum mandatory sentence of 28 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between January 13 and 17, 2022, Cabrera engaged in a crime spree during which he robbed two stores and a gas station in Plant City and Brandon. During these robberies, Cabrera held victims at gunpoint. At times, Cabrera removed the magazine from his pistol and showed bullets to the victims and stated, “this is for real” or “give me the money or I will shoot you.”
On January 19, 2022, Cabrera returned to the gas station he had robbed, approached an individual sitting inside a truck and carjacked him at gunpoint. As Cabrera was escaping in the truck, he brandished his firearm to other individuals who attempted to stop him and help the victim. Hours later, detectives from the Lakeland Police Department and ATF special agents, working together, located Cabrera in Plant City. Law enforcement activated their lights and sirens and began pursuit. Cabrera fled through Plant City, eventually entering the eastbound on-ramp of Interstate-4 heading towards Lakeland. As Cabrera entered the on-ramp, he stuck his hand out the driver’s side window holding a firearm. He pointed the firearm at law enforcement and fired multiple shots. Once on Interstate-4, Cabrera traveled at speeds of over 100 miles per hour, weaving in and out of busy midday traffic.
At one point, Cabrera lost control of his vehicle and crashed into a concrete median, nearly causing a collision with oncoming traffic. As he continued to flee, Cabrera fired multiple shots at law enforcement officers, striking their vehicles. Fearing that Cabrera was going to kill someone, and after determining that no other law enforcement officers or civilians would be in danger, an ATF special agent fired at Cabrera striking him twice in his lower back. Officers from the Lakeland Police Department and ATF agents then surrounded Cabrera. The officers provided Cabrera with first aid medical assistance before taking him to the hospital.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Lakeland Police Department. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Man Sentenced for Federal Firearm and Drug Trafficking Charges Stemming from New Orleans Hotel ShootoutRead the Press Release
NEW ORLEANS, LOUISIANA – BRIAN JACOB, age 23, from New Orleans, was sentenced on October 31, 2023 for various firearm and drug charges stemming from his participation in a December 28, 2020, shootout at the Jung Hotel on Canal Street, announced U.S. Attorney Duane A. Evans. On May 23, 2023, JACOB pled guilty to Counts 1, 2, and 3 of the superseding bill of information, that charged him with possessing firearms in furtherance of a drug trafficking crime (Count 1); participating in a conspiracy to possess with the intent to distribute quantities of marijuana (Count 2); and illegally maintaining a drug involved premises (Count 3).
United States District Court Judge Greg G. Guidry sentenced JACOB to 37-months imprisonment on Counts 2 and 3, and to 60-months imprisonment on Count 1, which must run consecutively to the sentences imposed on Counts 2 and 3. Therefore, JACOB received a total sentence of 97 months imprisonment, to be followed by five years’ supervised release. JACOB must also pay a $300.00 special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. Assistant United States Attorneys Maurice E. Landrieu, Jr. of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crime Unit are in charge of the prosecution.
Man Sentenced to 20 Years in Federal Prison for Sexually Abusing A ChildRead the Press Release
BOISE – Chris Hamburg, 63, was sentenced to the maximum sentence of 240 months in federal prison for transporting a child across state lines with the intent to sexually abuse the child, U.S. Attorney Josh Hurwit announced today. Hamburg’s victim appeared in court and gave a victim impact statement. “You stole every bit of peace and contentment, from my childhood...from my entire life. My struggles continue, daily,” the victim said to Hamburg.
According to court records, in approximately 1990, Hamburg began dating the victim’s mother. Hamburg moved into the family’s Washington residence and shortly thereafter began sexually abusing the victim. The victim was approximately eight or nine years old when the abuse began. Hamburg impregnated the victim when she was 11 years old. After the victim gave birth to a son, Hamburg moved the family to Idaho to avoid contact with child protective services. Hamburg continued to sexually abuse the victim and he impregnated her for a second time. When the victim was 13 years old, she gave birth to a second son.
For over a decade, Hamburg moved the family to various cities in Idaho and Utah. Hamburg sexually abused the victim until she was in her early twenties. In 2021, the victim reported the abuse to the FBI and the Boise Police Department. The FBI obtained a federal warrant to collect Hamburg’s DNA. Paternity testing confirmed that Hamburg fathered the victim’s children.
Hamburg was subject to the penalties and federal sentencing guidelines that were in effect at the time that he committed the crimes.
Senior U.S. District Judge B. Lynn Winmill also sentenced Hamburg to three years of supervised release. During the sentencing hearing, Judge Winmill said, “I would have a hard time coming up with a case that is more horrific than this one.” Hamburg will be required to register as a sex offender as a result of the conviction.
“In this case, the defendant raped and sexually abused a child for over a decade. What he did to the victim is inhuman,” said U.S. Attorney Hurwit. “The strength that the victim showed in reporting this abuse, however, shows the amazing resiliency of the human spirit. I hope that the sentence in this case provides some solace to her and her family. I thank the FBI and the Boise Police Department for their investigation in this case. Together, we stand ready to do all we can to seek justice for survivors of sexual abuse.”
“Our detectives spent a year and a half seeking justice for the victim in this horrific crime and we feel it’s important to commend her for her bravery in coming forward and for her participation in this process. It is a difficult but worthy endeavor,” said Boise Police Lieutenant Terry Weir. “We remind all victims that it’s never too late to report crimes of this nature. Boise Police officers and our Special Victim’s Unit work closely with victim support services at Faces of Hope Victim Center and we are ready and available to do whatever we can to bring some sense of justice to those who have been victimized.”
“The FBI commends the victim’s courage to report Mr. Hamburg's atrocious crimes. Because of her bravery, he will not have the opportunity to hurt her or another child again,” said Special Agent in Charge Shohini Sinha. “As a society, we must do all we can to protect our most vulnerable. The FBI and our partners are committed to keeping kids safe and holding those who hurt them accountable.”
Faces of Hope is a triage and support center for victims. Individuals are encouraged to report crime and seek services by calling (208) 577-4400 or visiting facesofhopevictimcenter.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Man Involved in Wake Inn Shooting Sentenced to More Than Nine Years in Federal PrisonRead the Press Release
RALEIGH, N.C. – Amos Clayborne, age 36, of Lexington, Kentucky was sentenced today to 115 months in prison for possessing a firearm while being a convicted felon after he fired into a crowd of people at the Wake Inn in 2021, striking three individuals and paralyzing one.
According to court records and evidence presented in court, Clayborne and his girlfriend visited the Wake Inn on New Bern Avenue in Raleigh on March 27, 2021. Surveillance footage from the inn shows that when they arrived, they were approached by four men and an argument ensued. Shortly after, Clayborne could be seen pulling a firearm from the waistband of his pants. He then proceeded to fire the weapon indiscriminately into a crowd of people on the outside stairwell of the inn. Three people were hit, and one victim sustained a gunshot wound that paralyzed her from the chest down.
Clayborne has two previous felony convictions in Florida including assault with a deadly weapon without the intent to kill (2008), and robbery without a dangerous weapon (2009).
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is a collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. Assistant U.S. Attorney Leonard Champaign prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00209-BO.
Man Admits Setting Fire at Ex-Girlfriend’s St. Louis County HomeRead the Press Release
ST. LOUIS – A man on Wednesday admitted setting a fire in his ex-girlfriend’s St. Louis County home while she, her daughter and her aunt all slept.
Christopher Willis, 39, pleaded guilty to a felony charge of maliciously damaging or destroying by means of fire in U.S. District Court in St. Louis. Willis admitted entering his ex-girlfriend’s home on Nero Drive in unincorporated St. Louis County early on the morning of April 29, 2023. He also admitted in his guilty plea that he set fire to some of her clothing in the basement of the home.
Willis’ ex-girlfriend awoke to the sound of a fire alarm and was able to safely escape with her child and her aunt, according to court documents.
As part of the plea agreement, both prosecutors and Willis’ lawyer have agreed to recommend a five-year prison sentence. Willis is scheduled to be sentenced January 30.
The case was investigated by the St. Louis Regional Bomb and Arson Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Emergency responders from the Black Jack Fire Protection District, the Spanish Lake Fire Protection District, the Florissant Fire Protection District, the Metro-North Fire Protection District and the Ferguson Fire Department all responded to the scene. Assistant U.S. Attorney Ryan Finlen is prosecuting the case.
Lowell Woman Pleads Guilty in Conspiracy to Use Stolen Identities to Fraudulently Purchase VehiclesRead the Press Release
BOSTON – A Lowell woman pleaded guilty today to her role in a scheme to use the stolen identities of United States citizens from Puerto Rico to fraudulently purchase vehicles.
Arialka Moya, 34, pleaded guilty to conspiracy to commit wire fraud, wire fraud, and false representation of a Social Security number. U.S. District Court Judge Patti B. Saris scheduled sentencing for Feb. 7, 2024. The defendant and multiple co-defendants were charged by criminal complaint in September 2020 and subsequently indicted by a federal grand jury in October 2020.
According to charging documents, in January 2019, Moya visited a Massachusetts car dealership and applied for a loan to purchase a vehicle worth over $60,000. In support of the car loan application, Moya provided stolen biographical information of a real United States citizen, including a fraudulent Puerto Rico driver’s license and a Social Security card, as proof of identification.
The charges of wire fraud and conspiracy to commit wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations, in New England; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Valuable assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of the Criminal Division are prosecuting the case.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Louisiana Physician Convicted of Tax EvasionRead the Press Release
A federal jury in Baton Rouge found a Louisiana physician guilty yesterday of income tax evasion.
According to court documents and evidence presented at trial, Dr. Melissa Rose Barrett of Baton Rouge, owned and operated two urgent care clinics – Central STAT Care and STAT Care Clinic – and owed the IRS approximately $1.6 million in taxes, excluding penalties and interest. The IRS notified Dr. Barrett that she owed taxes multiple times and through various means.
The evidence at trial showed that Dr. Barrett undertook a number of steps to evade the payment of her outstanding tax liability, including preparing and filing with the IRS a false form underreporting income and inaccurately detailing her assets and accumulating and concealing cash in a safe instead of depositing it in the bank. Dr. Barrett also purchased millions of dollars of real estate and personal property in the names of nominees, including, but not limited to, a personal residence, a boat, an airplane and several parcels of farmland.
Dr. Barrett faces a maximum penalty of five years in prison as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Ronald C. Gathe Jr. for the Middle District of Louisiana made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Wilson Stamm of the Tax Division and Assistant U.S. Attorneys Edward Warner and Elizabeth White for the Middle District of Louisiana are prosecuting the case.
Livermore Falls Man Sentenced for Fraudulently Obtaining Needs-Based BenefitsRead the Press Release
PORTLAND Maine: A Livermore Falls man was sentenced today in U.S. District Court in Portland for Social Security fraud, health care fraud, and theft of public money.
U.S. District Judge Nancy Torresen sentenced Rick V. Greene, 56, to five years of probation, and he was ordered to pay $34,119 in restitution to the Social Security Administration (SSA) and $37,944.34 in restitution to the Maine Department of Health & Human Services (DHHS). Greene pleaded guilty on June 20, 2023.
According to court records, from about January 2017 through December 2020, Greene concealed self-employed work activity, as well as various assets, from SSA to appear eligible to receive Supplemental Security Income (SSI) payments. SSI benefits are paid to people with limited income who are blind, disabled or elderly. Greene also concealed his work activity and assets from the Maine DHHS to appear eligible to receive MaineCare and Supplemental Nutrition Assistance Program (SNAP) benefits, which are also needs-based programs.
In multiple benefit eligibility reviews, Greene falsely represented to the SSA and Maine DHHS that his only income was from SSI. He did not disclose his income and assets despite knowing that he was required to do so and that they would affect his eligibility to receive benefits.
This investigation was conducted by SSA’s Office of the Inspector General and the Maine DHHS’s Fraud Investigation & Recovery Unit.
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Large-Scale Cocaine Supplier Sentenced to over Nine Years in Prison for His Role in Wide-Ranging Drug ConspiracyRead the Press Release
BOSTON – A Fitchburg man has been sentenced in federal court in Worcester for his role in a wide-ranging fentanyl, heroin, crack and cocaine trafficking conspiracy.
Pedro Villot-Santiago, 33, was sentenced on Oct. 30, 2023 by U.S. Senior District Court Judge Timothy S. Hillman to 112 months in prison and four years of supervised release. In March 2023, Villot-Santiago pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 280 grams or more of cocaine base (commonly known as crack cocaine) and 500 grams or more of cocaine.
Following a fatal fentanyl overdose in September 2018, an investigation began into a drug trafficking organization (DTO) in the Fitchburg area. Beginning in July 2019, court authorized interceptions of wire and electronic communications between members of the DTO and its suppliers revealed Villot-Santiago as a large-scale cocaine supplier.
Over the course of the investigation, over 1.8 kilograms of a heroin and fentanyl mixture and over 50 grams of crack cocaine were seized, as well as a stolen, loaded handgun, drug manufacturing equipment and over $376,000. Villot-Santiago was responsible for over 10 kilograms of cocaine. On the day of his arrest in July 2023, Villot-Santiago was found in possession of a stolen, loaded handgun, as well as over $252,000 in cash.
Villot-Santiago is the 15th defendant to be sentenced in this case. All 18 defendants have been convicted – either by guilty plea or jury conviction following trial. The remaining convicted defendants are scheduled to be sentenced in November 2023.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. The Fitchburg and Lunenburg Police Departments and U.S. Postal Inspection Service provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Kenai man arrested for threatening U.S. SenatorRead the Press Release
ANCHORAGE, Alaska – A Kenai man was arrested Monday on charges of making interstate threats to kidnap and injure a current U.S. Senator.
According to court documents, Arther Graham, 46, sent a web form submission to a U.S. Senator on Sept. 28, 2023, threatening to injure the Senator. Congressional staff members reported the threat to the U.S. Capitol Police and an investigation was launched.
The defendant identified himself in the threat. Law enforcement later confirmed the sender was Graham and lived in Kenai. He was taken into custody by special agents from the U.S. Capitol Police and FBI on Oct. 30, 2023. He is scheduled to make an initial appearance before a U.S. magistrate judge on Nov. 3.
Graham is charged with using interstate communications with a threat to kidnap and injure in violation of 18 U.S.C. §875(c). If convicted, he faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The U.S. Capitol Police, with assistance from the FBI Anchorage Field Office, the Kenai Police Department and the Alaska State Troopers, is investigating the case.
Assistant U.S. Attorney Karen Vandergaw is prosecuting the case.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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KC Man Sentenced for Illegal Firearm after Public DisturbanceRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Kansas, man was sentenced in federal court today for illegally possessing a firearm after causing a disturbance by firing the gun on a public street in the Swope Parkway neighborhood.
Michael S. Simmons, 47, was sentenced by U.S. District Judge Greg Kays to 11 years and two months in federal prison without parole.
On April 18, 2023, Simmons pleaded guilty to being a felon in possession of a firearm. This is his third federal felony conviction for being a felon in possession of a firearm.
Simmons was arrested on Sept. 18, 2022, when Kansas City, Mo., police officers received multiple 911 calls reporting that Simmons was standing in the street near the intersections of 55th Street, Swope Parkway and Cleveland Avenue, acting emotionally disturbed, removing his clothing, and pointing a gun at passing vehicles. Officers saw Simmons fire four to five gunshots in the direction of the ground and a nearby dog, prompting them to re-route traffic and create a perimeter of the scene.
Simmons initially refused to comply with the officers’ commands to surrender, instead rolling in circles in the grass. He appeared to be under the influence of a controlled substance or alcohol and had difficulty walking and maintaining balance. Following his eventual arrest, officers located a Glock 22 .40-caliber pistol and six spent shell casings in the area where he had lain. Simmons later told officers he was under the influence of PCP.
Simmons was on supervised release at the time of his arrest, after being convicted in 2019 of being a felon in possession of a firearm. Today’s sentence includes 14 months in prison for violating the conditions of his supervised release and 10 years in prison on the felon in possession charge, which must be served consecutively.
This case was prosecuted by Assistant U.S. Attorney John C. Constance. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.
Justice Department Leaders Join Maryland Attorney General to Announce Hate Crime GrantsRead the Press Release
Justice Department officials joined leaders and community partners from the state of Maryland on Monday to announce new federal investments aimed at combatting hate crimes across the country, as well as to highlight current national and local efforts addressing the devastating impact of hate crimes past and present. Maryland was chosen as a host site because the state has become a national model in addressing hate crimes. Associate Attorney General Vanita Gupta joined Assistant Attorney General Amy L. Solomon, Maryland Attorney General Anthony G. Brown and Acting Director Justin Lock of the Community Relations Service (CRS) in delivering opening remarks for the event.
Associate Attorney General Gupta announced $38 million in fiscal year 2023 DOJ funding will go to law enforcement and community programs and partners nationwide to help communities heal from hate crimes of the past, investigate and prosecute current cases and prevent future hate crimes.
“This is more than we have awarded in the last two years combined, which shows — in real dollars — our continued and increased commitment to this work,” said Associate Attorney General Gupta.
Assistant Attorney General Solomon echoed the Associate Attorney General’s emphasis of current national investments in hate crime prevention, and lauded the innovative work being done in Maryland, referencing the state’s “groundbreaking work … to root out hate and reconcile past wrongs that have left a legacy of pain in local communities.”
Acting Director Lock highlighted a growing partnership between hate crime grantees and the CRS, while Maryland Attorney General Brown spoke to the importance of federal funding in shaping the state’s approach to hate crime. Office of Justice Program (OJP) grants helped establish the Maryland Lynching Truth and Reconciliation Commission, the first body of its kind in the United States.
Opening speakers and the announcement of grant awards were followed by an expert panel discussion dedicated to addressing hate crimes. The panel was moderated by Director Karhlton F. Moore of the Bureau of Justice Assistance (BJA). Panel participants included Chief Zenita Wickham Hurley of the Office of Equity, Policy and Engagement, Maryland Office of the Attorney General; Director Dr. Nancy La Vigne of the National Institute of Justice (NIJ); Executive Director Renee Battle-Brooks of the Prince George’s County Office of Human Rights; Chair Dr. David Fakunle of the Maryland Lynching Truth and Reconciliation Commission Representing the National Great Blacks in Wax Museum; and Deputy Director Sarah Mersky Miicke of the Baltimore Jewish Council.
Deputy Associate Attorney General Saeed Mody provided closing remarks for the event, noting the rise in hate crimes in recent years, including the record number reported in 2022. He reinforced the department’s unwavering commitment to combating hate through federal law enforcement efforts and federal resources that support state and local community-based organizations and law enforcement agency partners.
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 equity and fairness in the administration of justice; assist victims; and uphold the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Associate Attorney General Vanita Gupta delivers remarks at Reconciling the Past, Building the Future: Law Enforcement and Community Partnerships Against Hate Assistant Attorney General Amy Solomon delivers remarks at Reconciling the Past, Building the Future: Law Enforcement and Community Partnerships Against Hate BJA Director Moore (left) and NIJ Director La Vigne (second from right) sit on a panel at Reconciling the Past, Building the Future: Law Enforcement and Community Partnerships Against Hate Acting CRS Director Justin Lock delivers remarks at Reconciling the Past, Building the Future: Law Enforcement and Community Partnerships Against HateJustice Department Hosts Forum to Highlight Efforts to Unite Communities and Strengthen Partnerships with Law Enforcement to Combat HateRead the Press Release
The Justice Department’s Civil Rights Division hosted a virtual forum to highlight the successful launch of the United Against Hate (UAH) initiative in all 94 U.S. Attorneys’ Offices (USAOs) and discuss efforts to combat unlawful acts of hate. Today’s event coincides with the 25th anniversary of the tragic murders of James Byrd Jr. and Matthew Shepard and commemorates the 14th anniversary of the Shepard/Byrd Hate Crimes Prevention Act.
In September 2022, Attorney General Merrick B. Garland announced that every USAO within the next year would convene local forums that connect community groups to federal, state, and local law enforcement to build trust and increase the reporting of hate crimes. The USAOs have met that commitment by hosting more than 200 UAH programs for thousands of participants nationwide over this past year.
“As I see in my daily threat briefings, there has been a significant increase in the volume and frequency of threats against Jewish, Muslim, and Arab communities across our country,” said Attorney General Merrick B. Garland. “I recognize the fear, frustration, and isolation that many of you have felt over the past few weeks, and that you continue to feel as you join us here today. I want to reiterate a core principle of this Justice Department: no person and no community in this country should have to live in fear of hate-fueled violence. You are not alone. And the Justice Department is committed to building on our partnerships with all of you to combat illegal acts of hate.”
Assistant Attorney General for Civil Rights Kristen Clarke moderated a fireside chat with Houston Police Department Officer Jamie Byrd-Grant, who is the daughter of James Byrd Jr. During the conversation, Byrd-Grant discussed her decision to become a police officer after her father’s brutal murder, when she was just 16, as well as her current role in administering a Shepard-Byrd grant in Houston. Dennis and Judy Shepard, the parents of Matthew Shepard, provided recorded remarks about their foundation’s efforts to amplify Matthew’s story to inspire individuals, organizations, and families to embrace the dignity and equality of all people, and the importance of community members connecting with law enforcement to build relationships before a hate crime occurs.
“Make no mistake, hate-fueled violence is a stain on our nation’s history and has no place in our society today,” said Assistant Attorney General Clarke. “Through United Against Hate, we are building community resilience, strengthening relationships between community and law enforcement, and empowering communities with the tools necessary to eliminate hate root and branch. This moment demands vigilance and use of every tool at our disposal, including the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, to ensure that our communities, schools, workplaces, houses of worship, stores, and streets are safe spaces, free from threats and bias-driven violence.”
The forum also included a panel discussion featuring U.S. Attorneys Dena King for the Western District of North Carolina; Roger Handberg for the Middle District of Florida; Josh Hurwit for the District of Idaho; and Philip Sellinger for the District of New Jersey, who all highlighted their successful UAH programs that have strengthened connections between their communities and law enforcement.
Deputy Associate Attorney General Saeed Mody, who is the Department’s hate crime coordinator, gave remarks on the Department’s efforts to address the rise in hate, including awarding over $38 million to support the investigation and prosecution of hate crimes, increase hate crimes reporting, expand victim services, and improve community awareness.
Multiple advocates and survivors of hate crimes joined the forum to discuss the value of centering survivor stories in sparking dialogue and building relationships. This panel included U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania; Rabbi Hazzan Jeffery Myers of the Tree of Life Congregation; Co-Director Pardeep Kaleka of Not In Our Town; Executive Director Anisha Singh of the Sikh Coalition; and Senior Program Director Nadia Aziz of the Leadership Conference on Civil and Human Rights.
The forum concluded with reflections from civil rights organizations, including Maya Berry of the Arab American Institute; Damon Hewitt of the Lawyers’ Committee for Civil Rights Under Law; and Sheila Katz of the National Council of Jewish Women. During this conversation, these civil rights leaders discussed the impact of recent increases in hate crimes and hate incidents on their community stakeholders, the response of their organizations, often working together, and how to improve partnerships and address the needs of survivors and their communities.
In conjunction with today’s event, the Civil Rights Division released a document highlighting the reach of the UAH program in its first year and examples of the impact the program has already had in several districts throughout the country. These include participants’s reporting of hate crimes and hate incidents to USAOs; coordination on responding to threats to religious institutions; and sparking the creation of new community initiatives at local colleges.
Learn more about the Department’s work on hate crimes here.
Justice Department Awards $10.5 Million in Grants to New Mexican Tribes and Organizations for Domestic Violence PreventionRead the Press Release
ALBUQUERQUE – During Domestic Violence Awareness Month, the Justice Department announced that it awarded 17 grants totaling $10.5 million to two Tribal governments and 15 organizations in the District of New Mexico through its Office on Violence Against Women (OVW) and Office for Victims of Crime (OVC). The grants were made possible through authorization under the Violence Against Women Act (VAWA) and the Victims of Crime Act (VOCA).
The Department awarded 496 grants totaling more than $251.1 million to bolster coordinated community responses aimed at bringing an end to domestic violence, as well as sexual assault, dating violence, and stalking. The grants will reach communities across the United States, including Tribal nations, historically marginalized communities, underserved communities, college and university campuses, rural towns, and more. The funding prioritizes increasing access to justice, bolstering survivor safety, holding perpetrators accountable, and offering training and technical support to professionals addressing these crimes.
Data from the most recent National Intimate Partner and Sexual Violence Survey indicate that about 41% of women and 26% of men experience contact sexual violence, physical violence, and/or stalking by an intimate partner and report an intimate partner violence-related impact during their lifetime. Domestic violence rates are even higher for American Indian and Alaska Native populations, Black individuals, people of color, people with disabilities, and LGBTQI+ individuals.
U.S. Attorney Alexander M.M. Uballez joins the U.S. Department of Justice in paying tribute to victims and survivors whose bravery makes justice possible, and saluting the dedication of advocates, service providers, justice professionals, law enforcement officers, and first responders who tirelessly work to secure that justice.
“Everybody deserves to feel safe in their home,” said U.S. Attorney Uballez. “We must believe survivors when they come forward, support them when they testify against their abusers, and have systems in place to aid them in healing. The Department of Justice is proud to announce over $10.5 million in grant funds awarded to two Tribal governments and 15 other New Mexican organizations to support outreach, prevention, intervention, services, and training relating to domestic violence.”
The following New Mexican Tribal governments and organizations received federal grants to support survivors and fight domestic violence:
- Capacity Builders, Inc. and the American Indian Development Associates, LLC each received $500,000 from the OVC Developing Future Victim Specialists to Serve American Indian Victims of Crime grant.
- The Pueblo of Jemez and Santo Domingo Pueblo received $900,000 and $664,869, respectively, from the OVW Grants to Indian Tribal Governments Program grant.
- The Coalition to Stop Violence Against Native Women received $382,188 from the OVW Grants to Tribal Domestic Violence and Sexual Assault Coalitions grant.
- The New Mexico Coalition of Sexual Assault Program received $950,000, the Phoenix House Sexual Assault and Domestic Violence Resource Center received $750,000, the New Mexico Immigrant Law Center received $750,000, the Tri-County Family Justice Center of Northeast New Mexico received $616,950, and the Community Against Violence, Inc. received $500,000 from the OVW Rural Domestic Violence, Sexual Assault, and Stalking Program grant.
- Casa Fortaleza received $495,000 from the OVW Sexual Assault Services Culturally Specific Program grant.
- La Casa received $550,000 from the OVW Transitional Housing Assistance for Victims of Domestic Violence, Sexual Assault, and Stalking grant.
- New Mexico Coalition Against Domestic Violence received $108,034 from the OVC State and Territorial Sexual Assault and Domestic Violence Coalitions Program grant.
- New Mexico Coalition of Sexual Assault Program received $232,584 from the OVC State and Territorial Sexual Assault and Domestic Violence Coalitions Program grant.
- New Mexico Dream Center of Albuquerque received a total of $1.8 million from the OVC Integrated Services for Minor Victims of Human Trafficking and OVC Services for Victims of Human Trafficking grant.
- New Mexico Immigrant Law Center received $800,000 from the OVC Services for Victims of Human Trafficking grant.
"We are thrilled to receive funding to support the Tribal Victim Specialist Internship (TVSI) III for a third three-year cycle,” said President Ada Pecos Melton of the American Indian Development Associates, LLC. “Through the TVSI III, we are helping to link individuals interested in working with victims living in rural or remote Tribal settings with Tribes serving as host sites. The TVSI helps Tribes build programs that attract qualified and culturally informed individuals to strengthen and grow their victim services workforce. We thank OVC for funding this project in NM and across the nation with other providers."
“Everyone has a role to play in ending gender-based violence,” added U.S. Attorney Uballez. “Every day, federal law enforcement and prosecutors work hand-in-hand with our local and tribal counterparts to protect survivors and seek justice. As a community, we owe these brave survivors support outside of the courtroom. If you or someone you know is a victim of domestic violence, speak out. We will be here for you.”
Organizations interested in applying for these and other grants are encouraged to visit the OVW and OVC websites for more details and application guidelines.
Immediate help for domestic violence victims is available through the National Domestic Violence Hotline (@ndvhoffiial) at 1-800-799-7233 or the Strong Hearts Native Helpline (@strongheartsdv) at 1-844-762-8483. To find additional information on local support and resources by state, visit: https://www.justice.gov/ovw/local-resources.
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Jacksonville Woman Arrested for Conspiracy to Create and Distribute Animal Crush VideosRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging Nicole Danielle Devilbiss (35, Jacksonville) with conspiracy to create and distribute animal crush videos. If convicted, Devilbiss faces a maximum penalty of five years in federal prison. A detention hearing has been set for Devilbiss on November 1, 2023, at 1:00 p.m.
Animal crushing is defined under federal criminal law as “actual conduct in which one or more living non-human mammals, birds, reptiles, or amphibians, is purposely crushed, burned, drowned, suffocated, impaled, or otherwise subjected to serious bodily injury.”
According to court documents, an investigation into a group on a mobile phone application revealed users were arranging the creation and sharing of videos depicting animal crush videos involving primates. The group chat was dedicated to the abuse, torture, and death of monkeys of various ages. The investigation identified Devilbiss as one of the administrators of the group and determined that she removed people from the group, commented on the abuse of the primates in the videos, and shared videos depicting primates being tortured.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Clay County Sheriff’s Office, the Jacksonville Sheriff’s Office, the St. Johns County Sheriff’s Office, and Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Ashley Washington.
Honduran National Pleads Guilty to Illegally Using a Social Security Number Belonging to Another IndividualRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that JOSE CASTRON MURCIA, age 22, a citizen of Honduras, pled guilty on October 31, 2023 to illegally using a social security number belonging to another individual, in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to documents filed in federal court, the defendant unlawfully used a social security account number belonging to another individual to complete documents necessary to maintaining employment with a local business. The defendant pled guilty before United States District Judge Greg G. Guidry and sentencing is set for February 6, 2024.
The maximum penalty for the offense is five years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim, followed by up to three years of supervised release, and a mandatory special assessment fee of one hundred dollars.
U.S. Attorney Evans praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Richard R. Pickens, II of the Financial Crimes Unit is in charge of the prosecution.
Harrison County man sentenced to 10 years on federal gun chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Richard Edward America, III, age 46, of Salem, West Virginia, was sentenced today to 10 years in federal prison for possession of an unregistered firearm.
According to court documents and statements made in court, America fired shots at law enforcement officers who were attempting to execute a search warrant at his home in May of 2022. America fled the scene but was later apprehended. Officers found eleven firearms, including an assault-style rifle in the area near where America fired shots at law enforcement, along with two silencers and assorted ammunition. America is prohibited from possessing firearms due to a previous conviction in state court in Doddridge County, West Virginia.
Assistant U.S. Attorney Sarah Wagner prosecuted the case on behalf of the government.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, West Virginia State Police, Doddridge County Sheriff’s Office, and Salem Police Department.
Chief U.S. District Judge Thomas S. Kleeh presided.
Grand jury indicts Cincinnati man with fentanyl crime, money launderingRead the Press Release
CINCINNATI – A federal grand jury indicted a Cincinnati man today on charges related to trafficking fentanyl and laundering the proceeds.
Nathaniel Williams, 44, is charged with possessing with the intent to distribute 400 grams or more of fentanyl and money laundering.
According to the indictment, on Oct. 18, Williams possessed bulk amounts of fentanyl.
In August 2023, Williams allegedly provided cash from his narcotics sales to an individual who then wired $15,120 of the funds into Williams’s bank account via a wire transfer. Williams withdrew $10,000 of the funds in cash a few days later.
Agents discovered more than $44,000 in cash at Williams’s residence while executing a search warrant.
Possessing with the intent to distribute 400 grams or more of fentanyl is punishable by at least 10 years and up to life in prison. Money laundering carries a maximum potential penalty of 20 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Cincinnati Field Office; and Cincinnati Police Chief Teresa Theetge announced the charges. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, and gangs that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grand Coulee Man Sentenced to 5 Years in Prison for Violent Assault Against Partner, Tribal EldersRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Xander Lee Ostenberg, 18, of Grand Coulee, Washington was sentenced after having pleaded guilty to Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner in Indian Country. Ostenberg also pleaded guilty to two counts of Assault by Beating, Striking or Wounding. U.S. District Judge Thomas O. Rice sentenced Ostenberg to 60 months in prison, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to court documents, in early February 2023, Ostenberg and his partner began fighting in the bedroom of their residence on the Kalispel reservation. Ostenberg’s partner began screaming and her grandfather and family friend rushed to her aid. Then, Ostenberg hit the grandfather in the head causing him to fall to the ground and lose consciousness. Ostenberg subsequently turned to attack the family friend, knocking him to the ground, pulled out some of his hair, and began choking him. The family friend was eventually able to break free. At that point, Ostenberg dragged his partner out of the house, hit her, and put her in his vehicle. Later that day, Pend Orielle Sheriff’s Deputies located Ostenberg’s truck, pulled it over and detained him. Ostenberg’s partner was bleeding around her lips and nose, she also had bruises on her face and body. She confirmed to deputies that the injuries were from Ostenberg assaulting her.
U.S. District Judge Rice imposed the sentence based on the victim impact statements and aggressive nature of the offense.
U.S. Attorney Waldref stated, “My heart goes out to the victims in this case. No one should have to live in fear of violence in their home from a domestic partner or spouse. My office is committed to working closely with our federal, state, local and tribal law enforcement agencies to ensure Native American women and families are protected from this kind of violence and trauma.”
“Addressing violent crime is a priority for the Kalispel Tribe. We are thankful for the partnership between the Kalispel Tribal Police Department, the FBI and the U.S. Attorney's Office,” stated Kalispel Tribal Vice Chair Curt Holmes. “We stand committed to vigorously pursuing prosecution for people who commit crimes on our Reservation; especially crimes against our women and vulnerable people.”
“Mr. Ostenberg’s youth cannot be used as an excuse for his violent actions.” said Richard A. Collodi, Special Agent in Charge or the FBI’s Seattle field office. “While he has time to reflect on the choices he made which led to this prison sentence, his actions impacted the lives of multiple victims. Addressing violence on our state’s reservations remains a priority for the FBI and our partners across Washington.”
This case was investigated by the Kalispel Tribal Police, Colville Tribal Police Department, Pend Oreille County Sheriff’s Department and the Federal Bureau of Investigation. The case was prosecuted by Richard R. Barker, First Assistant United States Attorney for the Eastern District of Washington and Michael Vander Giessen, Assistant United States Attorney for the Eastern District of Washington.
2:2023-cr-00031-TOR
Fremont County man sentenced for illegal possession of a firearmRead the Press Release
John William Goodman, age 29, of Fremont County, Wyoming, was sentenced recently to 48 months in federal prison for being a felon in possession of a firearm.
According to court documents, on April 12, 2023, the Riverton Police Department received a report of a physical assault involving a handgun near the Riverton bike path. Witnesses observed Goodman “pistol-whip” a man, knocking him to the ground, then beating him, before putting another person in a chokehold and pointing the gun at the person’s head. Afterwards, Goodman walked to the Murdoch’s store nearby where law enforcement officers observed Goodman drop something in a garbage can outside the store. Officers recovered a loaded 9mm Taurus pistol from the garbage can. Goodman was indicted by a federal grand jury in May and pled guilty on July 21. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on October 31.
This crime was investigated by the Federal Bureau of Investigation with substantial assistance from the Riverton Police Department and the Fremont County Sheriff’s Office. Assistant U.S. Attorney Timothy W. Gist prosecuted the case.
Case No. 23-CR-00078
Four Utah Residents Prosecuted for Gun Related Offenses, Firearms Allegedly Intended for MexicoRead the Press Release
SALT LAKE CITY – Four Salt Lake County residents are accused of participating in the purchase of or attempted purchase of numerous firearms in Utah and supplying them to Mexico.
According to court documents, Jose Manuel Barbosa Torres, 36, of West Valley City, Utah; Armando Figueroa Jr., 20, of Magna, Utah; Cecilio Luis Arriaga, 27, of West Valley City; and Iliana Dennis, 20, of West Valley City, were charged in a sealed indictment on Oct. 18, 2023. The defendants are accused of purchasing or attempting to purchase numerous Barrett .50 BMG caliber rifles between April 2023 and August 2023. The purchases were from Federal Firearm Licensees (FFLs). These firearms typically retail between $8,500 to $10,000. In furtherance of the crime, each defendant filled out an ATF Form 4473, wherein they indicated they were the actual transferee/buyer of the firearm and certified the submitted information was accurate, when it was false.In August 2023, agents intercepted Barbosa Torres and Dennis during an attempted firearm purchase. Barbosa Torres allegedly told agents Dennis was purchasing the firearm at his request, and that the firearm was ultimately destined for Cesar Rivera, who was in Arizona. During the investigation, Barbosa Torres again acknowledged the firearms were being purchased for Rivera, and stated Rivera was sending the firearms to Culiacán, Mexico. Rivera recently appeared before the U.S. District Court in the District of Utah for a firearms case in Arizona. He was arrested in Utah on Oct. 23, 2023, at Barbosa Torres’ West Valley City residence. Barbosa Torres, Figueroa, Arriaga, and Dennis were also arrested on Oct. 23, 2023, on warrants related to the indictment.
Barbosa Torres is charged with making false statements during the acquisition or attempted acquisition of firearms, and aiding and abetting. Figueroa, Arriaga and Dennis are also charged respectively in the indictment. All defendants had their initial court appearances and detention hearings on Oct. 27, 2023. Figueroa, Arriaga, and Dennis were released from custody on conditions. Barbosa Torres was ordered detained pending trial. A five-day jury trial is scheduled for Dec. 15, 2023, at 8:30 a.m. in courtroom 8.3 before a U.S. District Court Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is investigating the case.
Assistant United States Attorney Victoria McFarland of the District of Utah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.Attachments:
barbosatorres_etal_indictment.pdf barbosatorresdetentionmemo.pdfFour Toledo Area Individuals Sentenced for Healthcare Fraud SchemeRead the Press Release
TOLEDO –Kevin A. Clay, age 40, formerly of Perrysburg, Ohio was sentenced by U.S. District Judge Jack Zouhary to 51 months’ imprisonment after being convicted during a trial of conspiracy, healthcare fraud, and making a false statement on an application for charitable tax-exempt status with the IRS. Judge Zouhary also ordered two years of supervised release, a $300 special assessment, and forfeiture of property related to the offenses. Restitution will be determined at a later date.
According to court documents and evidence presented at trial, Kevin A. Clay was the co-owner of Theramedical, LLC, a pharmaceutical marketing company specializing in compounded pain and scar cream. The evidence showed that Clay and Theramedical recruited and paid individuals to obtain prescriptions for pain and scar cream, some of which cost as much as $14,000 for a single prescription. The prescriptions were submitted to a Cleveland-area pharmacy, which filled the prescription and billed insurance companies. Members of the scheme concealed the fact that patients were paid to get the prescriptions, and that the prescriptions were often medically unnecessary. In less than two years, Theramedical generated insurance billings of approximately $17 million from the fraudulent scheme. Clay was also convicted of making a false application for tax-exempt status for the Clay Foundation. In his application to the IRS, Clay claimed the foundation was a public charity, however, it was almost entirely funded by fraud proceeds from Theramedical, not the public. Clay conducted little or no fundraising, awarded virtually no scholarships, and purchased gold and silver in his own name with foundation funds.
Three others were also sentenced by Judge Zouhary as part of the scheme. Matthew Maluchnik, a co-founder of Theramedical, LLC, was sentenced to 25 months’ imprisonment after pleading guilty to healthcare fraud and making false statements on tax returns. Loni Peace, a relative of Maluchnik, was sentenced to two years’ probation after pleading guilty to health care fraud. Peace recruited co-workers to obtain prescriptions and received a portion of the proceeds for every patient she recruited. Suzette Lynn Huenefeld, a medical doctor that operated in Perrysburg, Ohio, was sentenced to two years’ probation after pleading guilty to healthcare fraud. Huenefeld wrote prescriptions for pain and scar cream for patients referred to her by Theramedical.
This case was investigated by the Federal Bureau of Investigation in Toledo, Ohio, and the Internal Revenue Service–Criminal Investigations in Cleveland, Ohio, the Ohio Attorney General’s Medicaid Fraud Control Unit, and the Ohio State Medical Board. The case was prosecuted by Assistant U.S. Attorney and Gene Crawford.
Four Defendants Extradited from Guatemala Sentenced for Roles in Deadly International Human Smuggling ConspiracyRead the Press Release
The Justice Department, along with the Department of Homeland Security and its partners, today announced significant sentences obtained through Joint Task Force Alpha’s (JTFA) prosecution of leaders, organizers, and members of a prolific human smuggling scheme that resulted in the death of a Guatemalan migrant in 2021.
Four defendants were sentenced today in the Western District of Texas for their roles in the human smuggling scheme. Lopez Mateo Mateo, aka Bud Light, 43, was sentenced to 30 years in prison; Felipe Diego Alonzo, aka Siete, 40, was sentenced to 19 years and seven months in prison; and Nesly Norberto Martinez Gomez, aka Canche, 38, and Juan Gutierrez Castro, aka Andres, 46, were both sentenced to 10 years and one month in prison.
“The four defendants sentenced in this case were part of a deadly human smuggling operation that endangered vulnerable migrants for profit and cost one woman her life,” said Attorney General Merrick B. Garland. “When I directed the formation of Joint Task Force Alpha in 2021, I said that the Justice Department would combat the threats posed by dangerous human smuggling networks where they originate and operate. Since then, the Justice Department has made over 260 domestic and international arrests and secured 150 convictions on human smuggling charges. The Justice Department will continue to disrupt and dismantle the threat posed by human smuggling and trafficking operations.”
“Human smugglers will do anything to make a profit and the Department of Homeland Security will do everything in its power to stop them,” said Secretary of Homeland Security Alejandro N. Mayorkas. “The sentencing of these four individuals is the direct result of an unprecedented, whole-of-government effort to prevent these crimes and seek justice for victims. In close partnership with the Justice Department and others through JTFA, our Homeland Security Investigations (HSI) agents will continue to investigate and dismantle the transnational criminal organizations that prey on vulnerable people.”
“Tragedies like this serve as a stark reminder of the dangers human smugglers pose to migrants,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Joint Task Force Alpha, with our international law enforcement partners, will continue to pursue and take down dangerous transnational operations that undermine our lawful immigration system and exploit migrants in the name of profit.”
According to court documents, the defendants admitted to conspiring with other smugglers to facilitate the movement of large numbers of migrants from Guatemala through Mexico and ultimately into the United States. They charged the migrants and their families approximately $10,000 to $12,000 for the perilous journey. One of the journeys resulted in the death of a young indigenous Guatemalan woman, who died in Texas in April 2021. The woman’s family paid the defendants approximately $10,000 to smuggle her into the United States. The defendants arranged for her to be guided for several days on foot through the desert from Mexico into Texas and then driven to a stash house in Odessa, Texas, where she ultimately died. The defendants and their co-conspirators dumped her body on the side of a rural road outside Odessa, Texas. The defendants and their co-conspirators also arranged to pay off the victim’s family in Guatemala.
“These sentences reflect the lengths and degrees this office and the overall Justice Department will go to seek justice for the victims of heinous crimes and prevent further harm,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Smuggling rings like these operate, not with any concern for their victims’ lives, but rather their greed and desire for cold, hard cash. In coordination with our partners, both in the United States and worldwide, we will continue to do everything in our power to dismantle these networks and hold smugglers accountable.”
“HSI will continue to apply its broad investigative authority and international footprint to ensure members of these transnational criminal networks are held accountable for preying upon and abusing a vulnerable population,” said Special Agent in Charge Francisco B. Burrola of HSI El Paso. “Our message is clear: If you’re running one of these elicit organizations that are moving human cargo, we will find you no matter how near or far you are.”
Each defendant pleaded guilty to one count of conspiracy to bring an alien to the United States resulting in death. As announced last year, extensive coordination between U.S. and Guatemalan law enforcement authorities led to the indictment and arrest of these four defendants, as well as the apprehension of 15 additional co-conspirators in Guatemala. Pursuant to an extradition request, in March, Guatemalan authorities extradited Mateo Mateo, Diego Alonzo, Martinez Gomez, and Gutierrez Castro to the United States – the first Guatemalan human smuggling extraditions to the United States in nearly five years, and the first ever extraditions from Guatemala to the United States on charges of human smuggling resulting in death.
HSI Midland led the investigation, working in concert with HSI Guatemala and the HSI Human Smuggling Unit in Washington, D.C. HSI received substantial assistance from U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; ICE’s Parole and Law Enforcement Programs Unit; U.S. Customs and Border Protection’s National Targeting Center/Operation Sentinel; U.S. Border Patrol; U.S. Marshals Service; the Odessa and Midland Police Departments; the Texas Department of Public Safety; and the Ector County, Midland County, and Crane County Sheriffs’ Offices.
The Justice Department’s Office of International Affairs (OIA) provided significant assistance to secure the arrest and extradition of the four defendants. The Criminal Division’s Office of Prosecutorial Development, Assistance, and Training (OPDAT) provided case-based mentoring to support the investigation. The Justice Department is grateful to Guatemalan law enforcement, who were instrumental in furthering this investigation.
JTFA Co-Director James Hepburn of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorneys Jose Luis Acosta and John Fedock for the Western District of Texas prosecuted the case, with substantial assistance from Assistant U.S. Attorney Adrian Gallegos for the Western District of Texas and HRSP Historian and Latin America Specialist Joanna Crandall.
This prosecution and the collaboration with Guatemalan law enforcement were coordinated under Joint Task Force Alpha (JTFA). Attorney General Garland created JTFA in June 2021 in partnership with DHS to strengthen the Justice Department’s efforts to combat the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA is comprised of detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California. Dedicated support is also provided by numerous components of the Criminal Division that are part of JTFA, led by HRSP, and supported by ODPAT, the Narcotic and Dangerous Drug Section, the Money Laundering and Asset Recovery Section, the Office of Enforcement Operations, OIA, and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration (DEA), and other partners. To date, JTFA’s work has resulted in over 260 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; over 150 convictions; significant jail sentences imposed; and forfeitures of substantial assets.
Four Arrested and Multiple Russian Nationals Charged in Connection with Two Schemes to Evade Sanctions and Send U.S. Technology Used in Weapons Systems to RussiaRead the Press Release
Four individuals were arrested, and an indictment and criminal complaint were unsealed this week in the Eastern District of New York regarding two separate conspiracies to unlawfully export controlled, dual-use technologies to Russia following Russia’s full-scale invasion of Ukraine.
Yesterday, a criminal complaint was unsealed, and a Brooklyn, New York, resident and two Canadian nationals were arrested in connection with a sophisticated global procurement scheme in which the defendants used two corporate entities registered in Brooklyn to unlawfully source and purchase millions of dollars’ worth of dual-use electronics on behalf of end-users in Russia, including companies affiliated with the Russian military. Some of the electronic components and integrated circuits shipped by the defendants are the same make, model, and part number that have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine.
Separately, earlier today, a Brooklyn resident was arrested, and a four-count indictment was unsealed alleging an illegal exports scheme to procure dual-use electronic components for entities in Russia involved in the development and manufacture of drones for the Russian war effort in Ukraine.
“Russia relies on critical technologies to wage its unlawful war in Ukraine, and the Justice Department will use all of our legal tools and authorities to deny them those technologies,” said Deputy Attorney General Lisa O. Monaco. “Today’s actions underscore the Department’s determination to hold accountable those who flout our laws by trying to evade sanctions and export controls to aid the Russian war machine. The defendants arrested over the last two days will now face justice for allegedly using false names and front companies to funnel sensitive electronics to Russia.”
“Protecting American technologies and securing innovation from foreign adversaries is of the utmost importance to U.S. national security,” said FBI Deputy Director Paul Abbate. “The conduct alleged in the charging documents represent a complete disregard for our nation’s security and our laws. The FBI and our partners remain committed to protecting American-made military and dual-use technologies by using every tool at our disposal. These law enforcement actions send a strong message that the FBI will never rest in our pursuit of those who intend to harm the United States and our allies.”
“In the past two days alone, the Justice Department and its law enforcement partners have arrested and charged multiple individuals accused of perpetrating sophisticated schemes to unlawfully acquire, conceal, and ship U.S. electronic components on behalf of the Russian defense industry,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The National Security Division is committed to holding accountable individuals who would defy U.S. law in support of Russian aggression in Ukraine.”
“We will continue to do everything in our power to take down Russian military procurement schemes like those alleged in these cases,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “When we identify U.S. components inside the types of Russian weapons being used to wreak destruction and death in Ukraine, we take action.”
“As both of these important cases demonstrate, in Brooklyn and around the world, the U.S. Attorney’s Office for the Eastern District of New York will not rest in making sure that military technologies do not fall into the wrong hands,” said U.S. Attorney Breon Peace for the Eastern District of New York. “As alleged, we have now stopped these six defendants from conducting sophisticated schemes to evade American sanctions and ship dual use electronics to fuel Russia’s war effort on the battlefield against Ukraine.”
United States v. Goltsev et al.
According to court documents, Nikolay Goltsev, 37, of Montreal, Canada; Salimdzhon Nasriddinov, 52, of Brooklyn; and Kristina Puzyreva, 32, of Montreal, Canada are charged in a sanctions evasion and export control scheme, in which millions of dollars’ worth of semiconductors, integrated circuits and other dual-use electronic components were unlawfully exported to Russia through two Brooklyn front companies.
Nasriddinov, a Brooklyn resident and dual citizen of Russia and Tajikistan, was arrested on Oct. 31 in Brooklyn. Goltsev and Puzyreva were arrested at a hotel in Manhattan on Oct. 31 during a trip to New York to visit Nasriddinov.
As alleged, the defendants used two corporate entities registered in Brooklyn – SH Brothers Inc. and SN Electronics Inc. – to facilitate the scheme and unlawfully source, purchase, and ship millions of dollars’ worth of dual-use electronics from U.S. manufacturers to sanctioned end-users in Russia. Many of the electronic components and integrated circuits shipped by the defendants through SH Brothers were, according to the Department of Commerce “of the highest concern due to their critical role in the production of advanced Russian precision-guided weapons systems, Russia’s lack of domestic production, and limited global manufacturers.”
According to the complaint, some of the electronic components and integrated circuits shipped by the defendants through SH Brothers are the same make, model, and part number that have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine, including the Torn-MDM radio reconnaissance complex, the RB-301B “Borisoglebsk-2” electronic warfare complex, the Izdeliye 305E light multi-purpose guided missile, the Vitebsk L370 airborne counter missile system, Ka-52 helicopters, Orlan-10 unmanned aerial vehicles (UAVs), and T-72B3 battle tanks.
During the period charged in the complaint, SH Brothers made hundreds of shipments valued at over $7 million to Russia.
As alleged, Goltsev received orders from Russian end-users in the defense and technology sectors who sought to acquire a particular item or part from the United States. Goltsev then communicated directly with U.S. manufacturers and distributors, typically using aliases such as “Nick Stevens” or “Gio Ross.” Nasriddinov and Goltsev purchased electronic components from U.S. manufacturers and distributors under the auspices of SH Brothers and SN Electronics and arranged for the items to be sent to various locations in Brooklyn. Nasriddinov and Goltsev then unlawfully shipped the items to a variety of intermediary corporations located in other countries, including Turkey, Hong Kong, India, China, and the United Arab Emirates, where they were rerouted to Russia. Puzyreva operated numerous bank accounts and conducted financial transactions in furtherance of the scheme.
As described in the complaint, the defendants were aware that the electronics being exported had potential military applications. For example, in a November 2022 message exchange between Nasriddinov and Goltsev, Goltsev commented how shipping to Russia had become “dangerous” and discussed a shipment of electronic components that had been detained by U.S. officials at John F. Kennedy International Airport. Nassridinov responded that “Ukrainians alleged that they’re being bombed from parts from there [the U.S. manufacturer], maybe that’s why they started investigating everything?” Goltsev responded that, “we need to figure out why they keep holding the package ... I don’t really understand how they figured [it] out.” In a subsequent message, Goltsev commented that, “in the future we will need to load from several companies, not to attract attention ... for now large packages will be dangerous until we understand what they figured out ... we will need to think of diversifying the load ... so that not everything is not moving from the same deck.” Additionally, in a February 2023 message, Nasriddinov wrote to Goltsev, “Happy Defender of the Fatherland,” referring the holiday in Russia and parts of the former Soviet Union celebrating those who served in the armed forces. Goltsev responded, “happy holiday to you too my friend, we are defending it in the way that we can [smile emoji].”
The FBI, Department of Commerce’s Bureau of Industry and Security, and Department of Homeland Security Homeland Security Investigations are investigating the case.
Assistant U.S. Attorneys Artie McConnell and Ellen H. Sise for the Eastern District of New York and Trial Attorney Christopher M. Cook of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance from Litigation Analyst Mary Clare McMahon. Assistant U.S. Attorney Laura Mantell for the Eastern District of New York is handling forfeiture matters.
United States v. Grigorev et al.
In a four-count indictment unsealed today in the Eastern District of New York, Nikita Arkhipov, 39, and Artem Oloviannikov, 37, both of St. Petersburg, Russia; and Nikolay Grigorev, 36, of Brooklyn; are charged with conspiracy and other offenses related to an export control scheme to benefit companies affiliated with the Russian military, including SMT-iLogic, a sanctioned Russian entity that has been identified as part of the supply chain for producing Russian military drones used in Russia’s war against Ukraine.
Grigorev was arrested today. Arkhipov and Oloviannikov remain at large.
As alleged in the indictment and other court filings, the defendants used a corporate entity, Quality Life Cue LLC (QLC), to facilitate their illegal export control scheme. QLC was registered in Brooklyn and controlled by Grigorev and Oloviannikov, with Arkhipov utilizing a QLC email account from Russia. Through QLC, the defendants procured dual-use electronic components, including semiconductors, for entities in Russia involved in the Russian war effort in Ukraine.
According to court documents, between Oct. 22, 2021, and Feb. 22, 2022, QLC accounts controlled by Grigorev received wire transactions from iLogic totaling approximately $273,000. These funds were used almost entirely to make payments to a Brooklyn-based electronics distributor or to pay Grigorev’s credit cards, which he used to buy goods from the Brooklyn-based company. Email and chat communications amongst the defendants explicitly reference efforts to circumvent U.S. sanctions; use “test” or “fictitious” orders to test new supply lines to Russia; and to discuss front companies in third countries, including Kazakhstan. In June 2023, a court-authorized search warrant of Grigorev’s residence in Brooklyn successfully interdicted over 11,500 electronic components purchased from the Brooklyn-based company that were awaiting unlawful export to Russia.
The FBI and Department of Commerce’s Bureau of Industry and Security are investigating the case.
Assistant U.S. Attorneys Artie McConnell, Rebecca Schuman, and Kate Mathews for the Eastern District of New York and Trial Attorney Natalya Savransky of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance from Litigation Analyst Mary Clare McMahon.
Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
A criminal complaint and an indictment are merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Grigorev et al. Indictment Goltsev et al. complaintFounders and Executives of Digital-Asset Company Charged in Multi-Million Dollar International Fraud SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Braden John Karony, Kyle Nagy, and Thomas Smith with conspiracy to commit securities fraud, conspiracy to commit wire fraud and money laundering conspiracy for their roles in defrauding investors in a decentralized finance digital asset called “SafeMoon” (SFM) that was issued by their company SafeMoon LLC. As alleged, the defendants lied to SFM investors concerning whether SFM’s use of ‘locked’ liquidity was inaccessible to the defendants, as well as their personal holding and trading of SFM. As SFM’s market capitalization grew to more than $8 billion, the defendants fraudulently diverted and misappropriated millions of dollars’ worth of purportedly “locked” SFM liquidity for their personal benefit. Earlier today, Karony was arrested in Provo, Utah, and Smith was arrested in Bethlehem, New Hampshire. Nagy remains at large.
Breon Peace, United States Attorney for the Eastern District of New York; James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); and Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the arrests and charges.
“As alleged, the defendants deliberately misled investors and diverted millions of dollars to fuel their greedy scheme and enrich themselves by purchasing a custom Porsche sports car, other luxury vehicles and real estate,” stated United States Attorney Peace. “As fraudsters increasingly use digital assets to mislead investors and misappropriate funds, our Office will be at the forefront of pursuing them and their ill-gotten gains. We will continue our focus in the digital asset space and bring those who defraud investors in this area to justice.”
Mr. Peace expressed his appreciation to the U.S. Securities and Exchange Commission for its assistance with the case.
“As alleged, SafeMoon’s executives grew their company value to over $8 billion, but instead of rewarding their clients as promised, their insatiable greed led them to spend millions of dollars on their own lavish desires. Today, no luxury vehicles or sprawling real estate can protect them from the consequences of such crimes,” said Ivan J. Arvelo, Special Agent in Charge of Homeland Security Investigations, New York. “HSI New York will relentlessly pursue individuals who seek to exploit investors and the American financial system for their own gain.”
“Although this fraud scheme may be complex, the end result is simple—theft. Investors were assured their money would be safe while the defendants allegedly misled investors and diverted millions of dollars to line their pockets and their driveways. Through cryptocurrency tracing and good old-fashioned police work, IRS-CI New York’s Cyber and J5 groups worked with our investigative partners to track the millions in diverted funds and arrest the perpetrators of this con,” stated IRS-CI Special Agent-in-Charge Fattorusso.
Background on SFMAs alleged, SFM tokens were digital assets first issued in March 2021 by SafeMoon LLC on a public blockchain. Through the operation of SFM’s smart contracts, every transaction in SFM was automatically subject to a 10% tax, meaning, for example, that if a holder of SFM transferred 10 SFM to another user, 1 SFM would automatically be retained from the transfer as a tax, and the remaining 9 SFM would be received by the other party. As marketed to SFM investors, the proceeds of SFM’s 10% tax were split into two 5% tranches, the proceeds of which were supposed to benefit holders of SFM in specific ways. The first 5% tranche of the tax proceeds would be “reflected” back to, and distributed among, all SFM holders, in proportion to their current SFM holdings and thereby increase the total quantity of SFM held by every SFM investor automatically. The remaining 5% tranche of SFM tax proceeds would be deposited into designated SFM liquidity pools. The larger the SFM liquidity pool, the greater the liquidity in the market for SFM. In the months after its launch in March 2021, SFM grew to have more than one million holders and a market capitalization of more than $8 billion.
The Defendants’ Fraudulent SchemeAs alleged, the defendants misrepresented to investors various material aspects of the SFM offering, including that SFM relied on “locked” liquidity pools that would automatically increase in size due to a 10% tax imposed on every SFM transaction; that the “locked” SFM liquidity pool prevented the defendants and other insiders at SafeMoon from being able to “rug pull”—a type of crypto fraud—SFM investors by removing liquidity from the SFM liquidity pool; that tokens in the liquidity pool would not be used to enrich the SafeMoon developers, including the defendants; that the defendants would manually add token pairs to the SFM liquidity pool when transactions of SFM occurred on specific centralized exchanges; and that the developers were not holding and trading SFM for their benefit.
In reality, the defendants allegedly retained access to the SFM liquidity pools and they used that access to intentionally divert and misappropriate millions of dollars’ worth of tokens from the SFM liquidity pools for their personal benefit. In addition, although they publicly denied that they personally held or traded SFM, the defendants repeatedly bought and sold SFM for their personal benefit, including at the height of SFM’s market price, which generated millions of dollars in profits. The defendants masked their movement of the fraudulent proceeds via numerous private un-hosted crypto wallet addresses, complex transaction routing, and pseudonymous centralized exchange accounts. The defendants used some of these proceeds to purchase luxury vehicles and real estate in New Hampshire, Utah, and Florida. Smith, for example, using cryptocurrency addresses he controlled, sent 2,900 Binance Coin (BNB) worth more than approximately $860,000 and traceable to the SFM liquidity pool to a third party’s cryptocurrency address in order to purchase a custom Porsche 911 sportscar and non-fungible token.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Drew G. Rolle, Matthew R. Galeotti and John O. Enright are in charge of the prosecution with assistance from Paralegal Specialist Jacob Menz.
The Defendants:
BRADEN JOHN KARONY (also known as “John Karony” and “CPT HODL T MUN”)
Age: 27
Provo, UtahKYLE NAGY (also known as “Safemoon Dev”)
Age: 35
Vero Beach, FloridaTHOMAS SMITH (also known as “papa”)
Age: 35
Bethlehem, New HampshireE.D.N.Y. Docket No. 23-CR-433