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Saturday 16 September 2023
District Man Pleads Guilty to 2021 Homicide of 30-Year-Old WomanRead the Press Release
WASHINGTON – Christian Monge, 26, of Washington, D.C., pleaded guilty on September 13, 2023, to voluntary manslaughter while armed in the fatal stabbing of 30-year-old Brittanie Clark, mother of three children, on August 31, 2021, in the Fort Totten neighborhood, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department.
As part of his plea, Monge admitted that his girlfriend accused Ms. Clark of inquiring about the defendant in a romantic way. Mr. Monge’s girlfriend assaulted Ms. Clark in front of bystanders, including several children. After the assault ended between the two women, Mr. Monge stabbed Ms. Clark 13 times in front of two children, including Ms. Clark’s young daughter. Mr. Monge will be sentenced on November 20, 2023, by Judge Robert Okun.
In announcing the guilty plea, U.S. Attorney Graves and Acting Chief Smith commended the work of those investigating the case from the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office.
Friday 15 September 2023
White Earth Man Sentenced to 10 Years in Prison for Drug Trafficking and Firearms ViolationsRead the Press Release
A White Earth man has been sentenced to 120 months in prison followed by 5 years of supervised release, for possession with intent to distribute methamphetamine and fentanyl and for possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Andrew M. Luger.
According to court documents, in June 2022, the White Earth Police Department received information that Redfeather Sturdevant, 44, was selling drugs from his house. On June 23, 2022, law enforcement executed a search warrant of the defendant’s residence. At his residence, law enforcement seized approximately 167 grams of methamphetamine, 210 fentanyl pills, and a loaded handgun. Law enforcement also found approximately $1,268 in cash drug proceeds at the defendant’s residence.
On April 13, 2023, Sturdevant pleaded guilty in U.S. District Court to one count of possession with intent to distribute methamphetamine and fentanyl, and possession of a firearm in furtherance of a drug trafficking crime. He was sentenced today by Judge Wilhelmina M. Wright.
This case is the result of an investigation conducted the Paul Bunyan Drug Task Force and the White Earth Police Department.
Assistant U.S. Attorney Bradley M Endicott prosecuted the case.
Western Union Remission Fund Distributes Approximately $40M to Victims in the United States and AbroadRead the Press Release
The Justice Department today announced that the Western Union Remission Fund began a distribution of approximately $40 million in funds forfeited to the United States from the Western Union Company (Western Union) to approximately 25,000 victims located in the United States and abroad. These victims stand to recover the full amount of their losses.
This is the first distribution in the second phase of the Western Union Remission distributions. The first phase of distributions paid more than $365 million to over 148,000 victims, all of whom received full compensation for their losses. The Justice Department anticipates authorizing more distributions for victims in the coming months.
The second phase of the Western Union Remission was opened in March 2022 to provide victims who had not filed petitions in the first phase of distributions an opportunity to file for remission. The Justice Department continues to accept petitions for remission from those victimized by the scheme.
“The latest distribution of the Western Union Remission Fund compensated thousands more victims harmed by predatory schemes,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Victim assistance is a primary goal of the Department’s Asset Forfeiture Program, and this latest distribution is a testament to the impact asset forfeiture can have in compensating and making victims whole.”
“Today’s distribution of $39.6 million to thousands of victims to compensate them for their losses demonstrates our commitment to hold all responsible parties accountable and to ensure justice for the victims who were financially harmed,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “We thank our law enforcement partners who continue to work tirelessly on behalf of the victims.”
“The U.S. Postal Inspection Service (USPIS) is committed to protecting victims of fraud and will continue to investigate those perpetrating such schemes,” said Postal Inspector in Charge Christopher Nielsen of the USPIS Philadelphia Division. “This $39 million disbursement to 25,000 victims brings the total disbursed to over $404 million to over 174,000 victims in the Western Union Remission process. We would like to thank our partners in this extraordinary effort especially the Justice Department’s Money Laundering and Asset Recovery Section.”
In 2017, Western Union entered into a deferred prosecution agreement (DPA) with the United States. Pursuant to the DPA, Western Union acknowledged responsibility for its criminal conduct, which included violations of the Bank Secrecy Act and aiding and abetting wire fraud, and agreed to forfeit $586 million, which has been made available to compensate victims of the international consumer fraud scheme through the remission process. Western Union simultaneously resolved a parallel civil investigation with the Federal Trade Commission.
In this scheme, fraudsters targeted consumers, including seniors, through multiple scams. Three specific scams directed towards seniors include the grandparent scam, where the fraudster would pose as the victim’s relative in need of immediate money to avoid personal harm, lottery, or sweepstakes scams; where the fraudster would tell the victim that they had won a large cash prize but had to pay fees such as taxes to claim the prize; and romance scams, where the fraudster would pose as an online love interest and request funds for a visit or for another purpose. In each of these scams, the fraudsters convinced their victims to send money through Western Union.
Certain owners, operators, or employees of Western Union agent locations were complicit in the schemes. Western Union aided and abetted the fraud scheme by failing to suspend or terminate complicit agents and by allowing them to continue to process fraud-induced monetary transactions. Western Union fulfilled its obligations under the DPA and the court granted the motion to dismiss the information.
The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime and acknowledges the significant assistance of the USPIS Philadelphia Division’s Harrisburg, Pennsylvania, Office in the Western Union remission. The victim compensation payments in the Western Union case would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section and the U.S. Attorneys’ Offices for the Middle District of Pennsylvania, the Central District of California, the Eastern District of Pennsylvania, and the Southern District of Florida. The FBI Los Angeles Field Office, IRS-Criminal Investigation, Homeland Security Investigations Philadelphia, the Federal Reserve Board and the Consumer Financial Protection Bureau Office of Inspector General, and the Department of the Treasury Office of Inspector General provided valuable assistance.
More information about the Western Union Remission Fund and its compensation to victims is available at www.WesternUnionRemissionPhase2.com. Further questions may be directed to the Western Union Remission Administrator by phone at (855) 786-1048 or by email at [email protected].
Washington Parish Man Pleads Guilty to Federal Gun and Drug ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – VINCENT PETERS, age 33, a resident of Bogalusa, Louisiana, pled guilty on September 13, 2023, before U.S. District Judge Sarah S. Vance to Counts 1, 3, 5, 8, and 9 of the indictment pending against him. Count 1 charged him with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), relative to his participation in a Bogalusa mass shooting on May 16, 2020. He also pled guilty to several drug distribution charges and another firearm charge stemming from a subsequent investigation by the Bogalusa Police Department and the Washington Parish Sheriff’s Office. In Counts 3, 5, and 8, he was charged with distribution of heroin and fentanyl and with possession with the intent to distribute heroin and fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). In Count 9, he was charged with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c).
According to court documents, on May 16, 2020, an “Unauthorized Assembly” (During Phase I of the COVID-19 Pandemic Re-Opening) occurred, resulting in several hundred people, assembling in a “Celebration of Life,” honoring a recent Bogalusa murder victim. During the celebration, an altercation between rival factions resulted in the shooting of thirteen (13) people. Four (4) victims were paralyzed due to their shooting injuries.
During a follow-up investigation, law enforcement learned that PETERS sold illegal narcotics and made several controlled purchased of illegal drugs from him. A subsequent warrant-based search of his residence also revealed additional drugs and a firearm.
Based on his guilty plea, PETERS will face the following sentences as to each count:
Count 1: Violation: Possession of a firearm by a felon, in violation of Title 18 U.S.C. § 922(g)(1);
Statutory Sentence: 0-10 yrs., up to a $250,000 fine, up to 3 years of supervised release.
Count 3: Violation: Distribution of heroin, in violation of Title 21 U.S.C. § 841(b)(1)(C);
Statutory Sentence: 0-20 yrs., up to a $1,000,000 fine, at least 3 years of supervised release.
Count 5: Violation: Distribution of heroin, in violation of Title 21 U.S.C. § 841(b)(1)(C);
Statutory Sentence: 0-20 yrs., up to a $1,000,000 fine, at least 3 years supervised release.
Count 8: Violation: Possession with the intent to distribute heroin and fentanyl, in violation of Title 21 U.S.C. § 841(b)(1)(C);
Statutory Sentence: 0-20 yrs., up to a $1,000,000 fine, at least 3 years of supervised release.
Count 9: Violation: Possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18 U.S.C. § 924(c);
Statutory Sentence: 5 years-life, up to a $250,000 fine, up to 5 years of supervised release. Any sentence imposed in connection with this count must be served consecutive to any other sentence.
PETERS faces payment of a $100 mandatory special assessment fee as to each charged count. PETER’s sentencing hearing is scheduled for January 3, 2024.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Bogalusa Police Department, and the Washington Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Maurice E. Landrieu, Jr. of the Narcotics Unit.
United Against Hate: Identifying and Reporting Acts of HateRead the Press Release
The United States Attorney’s Office will host a public outreach program about federal hate crimes from 6:00 p.m. to 8:00 p.m. at the Laramie County Library, Cottonwood Room, on Thursday, September 21, 2023. The event is free to the public and will include a presentation and open discussion about federal hate crimes and unlawful discrimination.
United Against Hate is a nationwide Department of Justice initiative to combat unlawful acts of hate by educating the public about federal hate crimes and anti-discrimination statutes. The program encourages the reporting of hate crimes, hate incidents and unlawful discrimination to law enforcement and the Department of Justice.
“We believe that people deserve to live without fear of being attacked or harassed because of where they are from, what they look like, how they worship, or what they believe,” said U.S. Attorney Nick Vassallo. “That is why our office, and all of the Justice Department, encourages the public to report acts of hate to law enforcement for investigation.”
Any act of hate can be reported to the United States Attorney’s Office in Wyoming by emailing [email protected]. Hate crimes can be reported to local law enforcement, and to the FBI by calling 1-800-CALL-FBI (800-225-5324) or online at https://tips.fbi.gov. Additional information on reporting hate crimes can be found at https://www.justice.gov/hatecrimes/report-a-hate-crime. This information is available in two dozen languages. Discrimination can be reported by emailing [email protected] or online at https://civilrights.justice.gov/.
U.S. Postal Carrier and Husband Plead Guilty for Mail Theft SchemeRead the Press Release
CHARLOTTE, N.C. – A U.S. Postal Carrier and her husband appeared in federal court today and pleaded guilty to federal charges for conspiring to commit an extensive mail theft scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Kiara Padgett, 29, of Waxhaw, N.C., and her spouse, Dominique Dunlap, 28, of Charlotte, pleaded guilty to conspiracy to commit bank fraud. Dunlap also pleaded guilty to four counts of possession of stolen mail.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, Jeff Krafels, Special Agent in Charge of the United States Postal Service, Office of the Inspector General (USPS-OIG) for the Mid-Atlantic Area Field Office (MAAFO), which oversees Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to plea documents, other court filings, and today’s court proceedings, Padgett was employed by the U.S. Postal Service as a mail carrier with a postal route in West Charlotte. From August 2021 to November 2022, Padgett used her position as a postal carrier to steal incoming and outgoing checks of businesses and individuals. Court documents show that Padgett sold the stolen checks using Dunlap as her intermediary to other individuals, including to Terrell Alexander Hager, Jr. The total face value of the checks stolen by Padgett was over $8.8 million.
According to court documents, Dunlap negotiated with Hager, Jr. about the sale of stolen checks over text messages, and sent Hager, Jr. photographs of stacks of stolen mail and of stolen checks of victim companies on Padgett’s postal route.
In March 2023, Hager, Jr. pleaded guilty to conspiracy to commit bank fraud. Court documents filed with the court show that, between August 2021 and November 2022, Hager, Jr. and other individuals obtained stolen checks from Padgett through Dunlap. Hager, Jr. and his co-conspirators deposited the stolen checks into bank accounts they controlled, and then made cash withdrawals before the financial institutions detected the fraud. Over the course of the scheme, Hager, Jr. and his co-conspirators deposited more than $66,000 in stolen checks and money orders. Hager, Jr. also posted online for sale more than 400 stolen checks totaling over $7.3 million. The checks posted by Hager, Jr. were stolen from Padgett’s postal route in West Charlotte. At the time Hager, Jr. committed this fraud, he was on probation with the state of North Carolina for an unrelated offense.
At sentencing, Padgett, Dunlap, and Hager, Jr. face a maximum prison term of 30 years and a $1 million fine for the bank fraud conspiracy charge. Dunlap also faces five years in prison and a $250,000 fine for each of the charges of possession of stolen mail. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King commended the USPIS, USPS-OIG, and CMPD for their investigation of the case.
Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
U.S. Attorney’s Office for Western Washington Celebrates Funding Awarded for Community Responses to Gender-Based ViolenceRead the Press Release
In commemoration of the 29th anniversary of the original enactment of the Violence Against Women Act (VAWA), the Justice Department announced today nearly $193 million in formula and discretionary grant awards to support crucial services and justice responses for survivors of domestic violence, dating violence, sexual assault, and stalking, including $3,784,202.00 for the Western District of Washington.
For nearly three decades, VAWA has provided the tools and resources to protect and serve survivors of domestic violence, dating violence, sexual assault, and stalking. To commemorate the 29th anniversary of VAWA, the U.S. Attorney’s Office for Western Washington is proud to announce that the Department of Justice Office on Violence Against Women (OVW) awarded $3,784,202. to Western Washington to support community responses to gender-based violence.
Acting US Attorney Tessa Gorman commented: “I am pleased to announce that Western Washington has been awarded funding from the Office on Violence Against Women. Prosecution of those who commit violence against women, along with supporting victim services is integral to the work of our office. We are very appreciative of the benefit these grants will have on our community.”
VAWA’s signature program is the STOP (Services, Training, Officers, and Prosecutors) Violence Against Women Formula Grants Program, which awards funds to every U.S. state and territory to promote a coordinated community response among law enforcement, prosecution, courts, victim services organizations, and other community services to ensure the safety of survivors. OVW is awarding $3,784,202.00 under the STOP Program to Western Washington to enhance the capacity for our community to develop programs to end gender-based violence and hold offenders accountable.
“Prior to the enactment of VAWA, survivors were primarily left to fend for themselves, often cycling in and out of dangerous environments with little help from legal systems or service providers.” OVW Director Rosie Hidalgo said. “VAWA has changed this landscape by supporting a coordinated community response to address domestic violence, sexual assault, dating violence, and stalking in a more comprehensive manner. It emphasizes survivor-centered, trauma-informed, and community-based approaches and ensures that services are available across every state and territory.”
OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
U.S. Attorney’s Office Celebrates Funding Awarded for Community Responses to Gender-Based ViolenceRead the Press Release
In commemoration of the 29th anniversary of the original enactment of the Violence Against Women Act (“VAWA”), the Justice Department yesterday announced nearly $193 million in formula and discretionary grant awards to support crucial services and justice responses for survivors of domestic violence, dating violence, sexual assault, and stalking. For nearly three decades, VAWA has provided tools and resources to protect and serve survivors.
The U.S. Attorney’s Office for the Northern District of Ohio is proud to announce that the Department of Justice Office on Violence Against Women (“OVW”) has awarded $607,500.00 to local organizations to support community responses to gender-based violence. Specifically, the Northern District of Ohio has received the following funds for the 2023 fiscal year:
OVW awarded $607,500.00 to the Cleveland Rape Crisis Center under Grants for Training and Services to End Violence Against Individuals with Disabilities and Deaf People Program (Disability Grant Program). This grant will support services for individuals who have disabilities or are deaf. Funding will provide specialized training, outreach, and cross-training for various agencies, and will support developing model programs to strengthen organizational capacities in assisting survivors.
“I am pleased to announce that the Northern District of Ohio has been awarded funding from the Office on Violence Against Women. This grant will allow the Cleveland Rape Crisis Center to collaborate with Cleveland Hearing and Speech in a meaningful way to strengthen partnerships with Deaf Pathways and increase services to deaf victims and survivors of sexual assault,” said U.S. Attorney Rebecca C. Lutzko.
“Prior to the enactment of VAWA, survivors were primarily left to fend for themselves, often cycling in and out of dangerous environments with little help from legal systems or service providers.” OVW Director Rosie Hidalgo said. “VAWA has changed this landscape by supporting a coordinated community response to address domestic violence, sexual assault, dating violence, and stalking in a more comprehensive manner. It emphasizes survivor-centered, trauma-informed, and community-based approaches and ensures that services are available across every state and territory.”
OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw
U.S. Attorney Charges High School Teacher with Attempted Transfer of Obscene Material and Receipt and Possession of Child PornographyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced that KOSTAS FEKKAS, a/k/a “Constantine Fekkas,” a/k/a “C.J. Justice,” was arrested on September 14, 2023, and charged via a criminal Complaint filed in White Plains federal court with possession of child pornography, receipt of child pornography, and attempted transfer of obscene material. FEKKAS was presented in White Plains federal court yesterday before U.S. Magistrate Judge Judith C. McCarthy, who ordered that FEKKAS be detained.
U.S. Attorney Damian Williams said: “Kostas Fekkas’s alleged conduct is despicable. As a teacher, Fekkas was entrusted with the care and well-being of children, who he in turn allegedly sought to victimize. I’m grateful to our diligent law enforcement partners and the dedicated prosecutors of this Office for bringing charges in this important case, and I encourage anyone who believes they may have information regarding Fekkas’s alleged conduct to report this information at 1-866-DHS-2423 or www.ice.gov/webform/ice-tip-form.”
HSI Special Agent in Charge Ivan J. Arvelo said: “As parents, we entrust our children's safety to the school each day, believing they are in safe hands. The accused stands charged with heinous crimes against an individual he believed to be a child, unaware that it was an undercover agent. It brings me a sense of relief to know this individual has been removed from both the streets and the classroom.”
As alleged in the Complaint filed yesterday:[1]
In December 2022, an undercover agent posing as a 13-year-old girl named “Riley” had a conversation on Kik (a mobile messaging application) with someone with the username “C.J.Justice” (“C.J.”). C.J.’s Kik account was registered to the email address [email protected]. Among other things, C.J. introduced himself as a 30-year-old male from New York who teaches high school physics; sent multiple photographs of himself to Riley that resembled a photograph of FEKKAS that had been posted on a public charter school’s website; repeatedly asked Riley for photographs, including photographs of her “body”; sent a video of someone masturbating and several photographs of an erect penis, including one from inside a classroom, to Riley; described the various kinds of sexual acts he wanted to engage in with Riley; and told Riley that he had sex “with a 10th grader once” and had “been searching ever since” to have sex with a minor again.
In March 2023, law enforcement seized FEKKAS’s cellphone and executed a search warrant to review the data extracted from the cellphone. They discovered that FEKKAS used a mobile application called HideU to hide, among other things, (i) a sexually explicit video in which a young female (“Victim-1”) was rubbing and inserting her fingers into her vagina; (ii) a photograph of the same female with her pink sweatshirt pulled up to expose her breasts; and (iii) a photograph of the same female naked from the head down to her knees. In the video and the photographs, she was wearing a bracelet that spelled out an abbreviated version of her first name. The name on the bracelet matched the name of a Snapchat user who had a chat conversation with “Lysol1834,” the Snapchat account username on FEKKAS’s cellphone. After comparing Snapchat records with passport information, law enforcement confirmed that Victim-1 was a girl who was 12 years old at the time the photographs and sexually explicit video was taken.
Prior to his arrest, FEKKAS was a teacher at a public charter high school located in upper Manhattan, New York. It also appears that FEKKAS previously worked at several other schools in the Bronx and Westchester counties.
There may be more victims of this alleged conduct. If you have information to report, contact HSI through its toll-free Tip Line at 1-866-DHS-2423 or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing-impaired users can call TTY 802-872-6196.
* * *
FEKKAS, 34, of Hartsdale, New York, is charged with attempted transfer of obscene material, which carries a maximum sentence of 10 years in prison; possession of child pornography, which carries a maximum sentence of 10 years in prison; and receipt of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison.
The minimum and maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding investigative efforts of HSI and the Rockland County District Attorney’s Office. He added that the investigation is ongoing.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Timothy Ly is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Foreign Nationals Sentenced for Human Smuggling ConspiracyRead the Press Release
Two Guatemalan nationals were sentenced this week in the Western District of Texas for their role in a prolific human smuggling conspiracy that resulted in the death of a migrant.
Armando Gael Galicia, aka Artemio Diego Andres Gonzalez, aka Luis Moreno-Gonzalez, 27, was sentenced today to 17 years and six months in federal custody. Jose Diego Tercero-Gonzalez, 23, was sentenced on Sept. 14 to 15 years and eight months in federal custody.
According to court documents, Gael Galicia and Tercero-Gonzalez were responsible for smuggling a young indigenous Guatemalan woman. In May 2021, her body was discovered in a remote area outside of Odessa, Texas. In August 2021, Gael Galicia and Tercero-Gonzalez were arrested near the trailer where the victim was taken and died. Inside the trailer were additional migrants who had entered the country unlawfully.
The case is related to the recent guilty pleas of Felipe Diego Alonzo, Nesly Norberto Martinez Gomez, Lopez Mateo Mateo, and Juan Gutierrez Castro for their involvement in the Guatemala-based human smuggling conspiracy that led to the young woman’s death.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Jaime Esparza for the Western District of Texas, Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI), and Senior Official Performing the Duties of the Commissioner Troy Miller of Customs and Border Protection (CBP) made the announcement.
This investigation was coordinated through Joint Task Force Alpha (JTFA). JTFA was created in June 2021 by Attorney General Merrick B. Garland, in partnership with Department of Homeland Security (DHS) Secretary Alejandro N. Mayorkas, 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’s goal is to disrupt and dismantle human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse, or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
HSI Midland investigated the case, 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’s (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 Criminal Division’s Office of International Affairs (OIA), and Office of Prosecutorial Development, Assistance, and Training (OPDAT) provided significant assistance in this matter.
JTFA Co-Director James Hepburn of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys John Fedock and Jose Luis Acosta for the Western District of Texas are prosecuting the case, with assistance from HRSP Historian/Latin America Specialist Joanna Crandall and Trial Attorney Daria Andryushchenko of the Criminal Division's Money Laundering and Asset Recovery Section. Former Assistant U.S. Attorney Glenn Harwood for the Western District of Texas provided substantial assistance. The Justice Department thanks Guatemalan law enforcement, who were instrumental in furthering this investigation.
Since its creation, JTFA has successfully increased collaboration between the Justice Department, DHS, and other interagency law enforcement participants, and with foreign law enforcement partners, including in El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations who have the most impact on the United States; and coordinated significant smuggling indictments and extradition efforts in U.S. Attorneys’ Offices across the country resulting in over 250 domestic and international arrests. JTFA is comprised of detailees from southwest border, U.S. Attorneys’ Offices, including the Southern District of Texas, Western District of Texas, District of New Mexico, District of Arizona, and Southern District of California, and dedicated support for the program is also provided by numerous components of the Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section, and supported by OPDAT, the Narcotic and Dangerous Drug Section, the Money Laundering and Asset Recovery Section, the Office of Enforcement Operations, OIA, and the Organized Crime and Gang Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, DEA, and other partners.
Toxicology Lab Owner Pleads Guilty to Health Care Fraud and Tax Evasion; Lab Officer Pleads Guilty to Health Care FraudRead the Press Release
LEXINGTON, Ky. – The owner and CEO of a Lexington toxicology lab, Ronald Coburn, 76, pleaded guilty on Tuesday, before Chief U.S. District Judge Danny Reeves, to health care fraud and tax evasion. The compliance officer of the same lab, Erica Baker, 31, pleaded guilty on Friday to a health care fraud conspiracy with Coburn.
According to Coburn’s plea agreement, he owned and operated LabTox, LLC, a laboratory that performed urine drug testing services and billed them to Medicare and Kentucky Medicaid. Coburn knew that those health care programs only pay for medically necessary urine drug testing. He also admitted knowing that urine drug testing ordered by courts for use in judicial proceedings was not medically necessary, and thus not payable by Medicare or Kentucky Medicaid. With Coburn’s knowledge and approval, however, Baker recruited a company called Blue Waters Assessment and Testing Services to refer court-ordered urine drug testing to LabTox. Coburn knew this was not medical testing, but caused it to be billed any way to Medicare and Kentucky Medicaid, resulting in fraudulently obtained payments to LabTox of $1,864,429 between June 2019 and March 2021. In his plea agreement, Coburn has agreed to repay this money to Medicare and Kentucky Medicaid.
Coburn also admitted to receiving income of more than $1.5 million per year from LabTox between 2017 and 2021, and to concealing this income and his ownership of LabTox by placing the business in the name of his partner. Coburn created the false appearance that he did not earn income during this time period, and he did not file any tax returns in his own name. While he caused tax returns to be filed in the name of his partner, he never paid any of the income tax he knew he owed to the Internal Revenue Service. Coburn’s plea agreement obligates him to pay $3,566,645 to the IRS, representing income tax he owed in 2017 through 2021.
According to Erica Baker’s plea agreement, she was LabTox’s director of operations and compliance officer, and participated in a health care fraud conspiracy with Coburn between January 2019 and January 2021. Specifically, at Coburn’s direction, Baker solicited urine drug testing from non-medical substance abuse recovery programs, typically faith-based residential programs or homeless shelters. Baker knew that urine drug testing for clients of these programs was not done for any medical reason, as would be required before Medicare or Kentucky Medicaid would pay for the tests. As part of the scheme, Baker misled sober home directors, and induced the facilities to send in more tests to LabTox by putting facility staff on LabTox’s payroll and compensating them based on the number of urine drug tests sent to the lab. Despite knowing that this testing was not for medical purposes, Baker and Coburn agreed to cause urine drug testing referred by these non-medical sober homes to be billed to Medicare and Kentucky Medicaid, resulting in fraudulent payments of at least $937,594.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Brian Jones, Acting Special Agent in Charge, FBI, Louisville Field Office; Tamala E. Miles, Special Agent in Charge, Department of Health and Human Services, Office of Inspector General, Atlanta Field Office; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, jointly announced the guilty pleas.
The investigation was conducted by the FBI, HHS-OIG, and IRS. The United States was represented by Assistant U.S. Attorneys Andrea Mattingly-Williams and Paul McCaffrey.
Coburn and Baker are both scheduled to be sentenced on December 18, 2023. Both face a maximum of 10 years in prison and a fine of up to $250,000 fine. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Three Twin Cities Men Arrested, Charged with Operating a Machinegun Distribution Ring on SnapchatRead the Press Release
MINNEAPOLIS – Three Twin Cities men have been arrested and charged after law enforcement disrupted a social media-based machinegun distribution ring, announced U.S. Attorney Andrew M. Luger.
Rafael Carter Wesley, 19, Kyrees Darious Johnson, 22, and Avont Akira Drayton, 21, have been charged in three separate criminal complaints with one count each of unlawful possession of machineguns.
According to court documents, in March 2023, law enforcement became aware of a Snapchat group called “BLICCS&STICCS3.” Law enforcement suspected the group was used to facilitate the trafficking of machineguns, firearms, and controlled substances in the Twin Cities and outlying areas. Law enforcement obtained screenshots and videos of several individuals in the group selling, promoting, and operating machinegun conversion devices (MCD) that convert a semi-automatic firearm—either a pistol or a rifle—into a fully automatic machinegun. These devices are classified as machineguns and are regulated under the National Firearms Act (NFA).
According to court documents, on March 20, 2023, an undercover law enforcement officer began monitoring the group. The undercover officer posted a picture of prop firearm to the BLICCS&STICCS3 group. Shortly thereafter, a user of the group, later identified as Wesley, reached out to the undercover officer and asked if he wanted to trade the firearm for what is commonly referred to as a Glock “switch” or a “button.” On or about March 26, 2023, the undercover officer continued conversations with Wesley on Snapchat about potentially purchasing Glock “switches.” Wesley indicated “switches” would cost $700 for two or $900 for three. The undercover officer agreed to purchase three switches for $900 and indicated he would pay an extra $100 if Wesley drove up to St. Cloud to deliver the switches. On March 27, 2023, Wesley met the undercover officer in St. Cloud and sold him three switches for $1,000.
On April 4, 2023, a second transaction was arranged through Wesley with a St. Paul meeting location. Wesley and another member of the BLICCS&STICCS3 Snapchat group—later confirmed to be Johnson—sold an additional three switches to the undercover officer for $900.
On April 13, 2023, undercover officers met with Wesley in Minneapolis to purchase an unserialized Glock 17 for $700. Following the transaction, the undercover officers asked Wesley to install the switch previously purchased from Wesley onto the Glock 17. Wesley agreed and installed the switch.
That same day, Wesley separately coordinated a meeting during which undercover officers met with Drayton, another member of the BLICCS&STICCS3 Snapchat group, to purchase a 3D-printed drop-in MCD for an AR-style rifle for $550. During the transaction, Drayton showed the undercover officers a video on his phone of Drayton shooting a firearm with a drop-in MCD inserted. Drayton commented to the undercover officers that the drop-in made the firearm shoot “way too [expletive] fast.” On May 11, 2023, an undercover officer directly arranged to meet with Drayton at a location in Eagan to purchase two drop-in MCDs for $800. However, when Drayton arrived at the meeting location, he stated that he had only had one MCD and sold it to the undercover officer for $400. On June 9, 2023, undercover officers again met with Drayton and purchased a Glock pistol and a “switch” for $1,300.
According to court documents, between March and June 2023, undercover law enforcement officers conducted approximately six controlled buys with multiple members of the BLICCS&STICCS3 group.
According to court documents, Johnson is prohibited under federal law from possessing firearms or ammunition at any time because he has prior felony convictions and both Wesley and Drayton are subject to court-imposed restrictions that prohibit them from possessing firearms.
Johnson and Drayton made their initial appearances in today in U.S. District Court before Magistrate Judge John F. Docherty. Wesley made his initial appearance on September 14, 2023.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Central Minnesota Violent Offender Task Force, the St. Paul Police Department, the Minneapolis Police Department, and the Dakota County Drug Task Force.
Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.
A complaint is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Defendants Convicted of Federal Civil Rights Conspiracy and Freedom of Access to Clinic Entrances (FACE) Act Offenses for Obstructing Access to a Reproductive Health Services FacilityRead the Press Release
A federal jury convicted three defendants of charges of federal civil rights offenses in connection with the Oct. 22, 2020, invasion of a reproductive health care clinic in Washington, D.C.
According to evidence presented at trial, Jonathan Darnel, 41, of Arlington, Virginia; Jean Marshall, 73, of Kingston, Massachusetts; and Joan Bell, 74, of Montague, New Jersey, engaged in a conspiracy to create a blockade at the reproductive health care clinic to prevent the clinic from providing, and patients from receiving, reproductive health services. As part of the conspiracy, Marshall and Bell traveled to the Washington, D.C. area to meet with Darnel and participate in a clinic blockade that was directed by another co-conspirator and broadcast on Facebook.
According to evidence presented at trial, Marshall and Bell were among a group that forcefully entered the clinic and blockaded two clinic doors using their bodies, furniture, chains and ropes. Once the blockade was established, Darnel – who remained outside the clinic – live-streamed their activities on social media. The evidence also showed that the defendants violated the FACE Act by using a physical obstruction to injure, intimidate and interfere with the clinic’s employees and a patient because they were providing or obtaining reproductive health services.
The defendants each face a maximum penalty of 11 years in prison, followed by three years of supervised release and a fine of up to $350,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. District Court Judge Colleen Kollar-Kotelly, who presided over the trial, ordered the defendants immediately detained as required by statute. Sentencing will be scheduled at a later date.
Five additional co-conspirators were convicted in August on the same counts. Lauren Handy, 28, of Alexandria, Virginia; John Hinshaw, 67, of Levittown, New York; Healther Idoni, 61, of Linden, Michigan; William Goodman, 52, of the Bronx, New York; and Herb Geraghty, 25, of Pittsburgh, were also convicted of felony conspiracy against rights and a FACE Act offense. One co-defendant, Jay Smith, pleaded guilty and was sentenced to 10 months in prison. Another co-defendant, Paulette Harlow, is awaiting trial on similar charges.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Matthew M. Graves for the District of Columbia and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office is investigating this case, with assistance from the FBI Field Offices in Pittsburgh, Newark, New York City, Boston and Detroit and the Metropolitan Police Department.
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of Columbia’s Public Corruption and Civil Rights Section are prosecuting this case, with valuable assistance from the U.S. Attorneys’ Offices for the District of New Jersey, District of Massachusetts, Eastern District of Michigan, Eastern District of New York and Southern District of New York.
Three Defendants Convicted of Federal Civil Rights Conspiracy and Freedom of Access to Clinic Entrances (FACE) Act Offenses for Obstructing Access to a Reproductive Health Services FacilityRead the Press Release
WASHINGTON – A federal jury today convicted three defendants of both offenses in a two-count indictment charging them with federal civil rights offenses in connection with the October 22, 2020, invasion of a reproductive health care clinic in Washington, D.C. The defendants – Jonathan Darnel, 41, of Arlington, Va.; Jean Marshall, 73, of Kingston, Mass.; Joan Bell, 74, of Montague, NJ – were each convicted of a felony conspiracy against rights and a FACE Act offense.
The announcement was made by U.S. Attorney Matthew M. Graves, Assistant Attorney General Kristen Clarke, for the Justice Department’s Civil Rights Division, and Assistant Director David Sundberg, of the FBI Washington Field Office.
The defendants each face up to a maximum of 11 years in prison, three years of supervised release, and a fine of up to $350,000. U.S. District Court Judge Colleen Kollar-Kotelly, who presided over the trial, ordered the defendants immediately detained as required by statute. Sentencing will be scheduled at a later date.
As the evidence at trial showed, the defendants engaged in a conspiracy to create a blockade at the reproductive health care clinic to prevent the clinic from providing, and patients from receiving, reproductive health services. As part of the conspiracy, Marshall and Bell traveled to the Washington, D.C. area to meet with Darnel and participate in a clinic blockade that was directed another co-conspirator and was broadcast on Facebook.
According to the evidence, Marshall, and Bell were among a group that forcefully entered the clinic and set about blockading two clinic doors using their bodies, furniture, chains and ropes. Once the blockade was established, Darnel – who remained outside the clinic -- live-streamed their activities on social media. The evidence also showed that the defendants violated the FACE Act by using a physical obstruction to injure, intimidate and interfere with the clinic’s employees and a patient, because they were providing or obtaining reproductive health services.
Five co-conspirators in the action were convicted in August 2023 on the same counts. Lauren Handy, 28, of Alexandria, Va.; John Hinshaw, 67, of Levittown, NY; Heather Idoni, 61, of Linden, Mich.; William Goodman, 52, of the Bronx, NY; and Herb Geraghty, 25, of Pittsburgh, Pa., also were convicted of felony conspiracy against rights and a FACE Act offense. One co-defendant, Jay Smith, pleaded guilty and was sentenced to 10 months of incarceration, followed by three years of supervised release.
The case is being investigated by the FBI’s Washington Field Office, with valuable assistance from the Metropolitan Police Department and the FBI’s Pittsburgh and New York City Field Office. The case is being prosecuted by the Justice Department’s Civil Rights Division and the Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia. The U.S. Attorneys’ Offices for the District of New Jersey, District of Massachusetts, Eastern District of Michigan, Eastern District of New York, and Southern District of New York; and FBI Field Offices in Newark, New York City, Boston, and Detroit provided valuable assistance.
The Villages Man Charged with Illegally Receiving Misbranded Erectile Dysfunction PillsRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Reginald Odell Kincer (77, The Villages) has been charged by information with receipt of misbranded drugs in interstate commerce. If convicted, Kincer faces up to one year in federal prison and a fine of up to $10,000.
According to court records, Kincer received more than $1,800 of erectile dysfunction drugs that had been shipped through interstate commerce. These drugs were misbranded because Kincer obtained them without a prescription from a licensed doctor. Kincer had planned to redistribute these drugs to others locally and outside the State of Florida.
An information is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Download Charging DocumentStraw Purchaser Sentenced to 18 Months in Federal Prison for Illegally Purchasing 12 Firearms, One Landing in the Hands of a Convicted FelonRead the Press Release
INDIANAPOLIS- Xavier Wilson, 24, of Otterbein, Indiana, has been sentenced to a year and a half in prison for making a false statement in connection with the purchase of a firearm.
According to court documents, in February of 2021, ATF agents received a report from the Lafayette Police Department regarding a possible straw purchaser. A straw purchase scheme is when a person not prohibited from purchasing or possessing a firearm falsely states to a federally licensed gun dealer that they are purchasing a firearm for themselves, when they know that the gun is actually intended for someone else, frequently someone who is prohibited from purchasing or possessing the firearm themselves.
The individual, later identified as Xavier Wilson, purchased twelve guns from federally licensed firearms dealers in Marion and Boone Counties within one month. On federal firearms purchase forms, Wilson indicated that he was the actual buyer of the guns and provided an out-of-date address, where he had not lived for two years.
On March 31, 2021, one of the firearms Wilson purchased, a Glock 45 handgun, was recovered by law enforcement officers in Chicago, Illinois, in the hands of a convicted felon. Wilson had purchased that firearm just seven days earlier.
On April 14, 2021, ATF agents interviewed Wilson at his actual residence in Lafayette. Wilson admitted that he bought the firearms with the intent to resell them quickly on Discord and Armslist.com to make a profit. Wilson also admitted to providing a false address on ATF form 4473.
U.S. Attorney for the Southern District of Indiana, Zachary A. Myers and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division made the announcement.
“Illegal gun traffickers flood our streets with firearms and drive the violence plaguing too many of our neighborhoods, and saving lives requires us to stop the flow of crime guns at their source,” said U.S. Attorney Myers. “This defendant repeatedly lied to obtain firearms and profited by putting them into the hands of people prohibited from legally purchasing them. Now he will pay for his crimes in federal prison. This prosecution demonstrates that our office will work tirelessly with the ATF to identify illegal gun traffickers and hold them accountable.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. The sentence was imposed by U.S. District Court Judge, James P. Hanlon. Judge Hanlon also ordered that Wilson be supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Kelsey L. Massa, who prosecuted this case.
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Statement from Attorney General Merrick B. Garland on the Extradition of Ovidio Guzman Lopez from Mexico to the United StatesRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the extradition of Ovidio Guzman Lopez, son of Joaquin Guzman Loera, aka “El Chapo,” from Mexico to the United States:
“Today, as a result of United States and Mexico law enforcement cooperation, Ovidio Guzman Lopez, a leader of the Sinaloa Cartel was extradited to the United States. This action is the most recent step in the Justice Department’s effort to attack every aspect of the cartel’s operations. The fight against the cartels has involved incredible courage by United States law enforcement and Mexican law enforcement and military servicemembers, many of whom have given their lives in the pursuit of justice. I am grateful to them and to the Department’s prosecutors for their work and their sacrifice. I am also grateful to our Mexican government counterparts for this extradition. The Justice Department will continue to hold accountable those responsible for fueling the opioid epidemic that has devastated too many communities across the country.”
St. Petersburg Men Sentenced for Possession of Controlled Substances with Intent to DistributeRead the Press Release
Tampa, FL - United States District Judge Kathryn Kimball Mizelle has sentenced Lemar Cowart (27, St. Petersburg) to 12 years and 7 months in federal prison for possession of controlled substances with the intent to distribute them. Armani Dilworth (28, St. Petersburg) was sentenced to 8 years and 10 months’ imprisonment for possession of controlled substances with the intent to distribute them and possession of a firearm in furtherance of a drug trafficking crime. Cowart and Dilworth had pleaded guilty in May 2023.
According to court documents, on May 4, 2020, an eyewitness observed a vehicle pull into traffic, which was occupied by Dilworth and Cowart. One or more occupants of that vehicle fired shots into the front of another vehicle. The occupants of the other vehicle retaliated, and a high-speed chase ensued. The car which Dilworth and Cowart occupied ultimately crashed into a gate at Azalea Middle School, and Dilworth and Cowart ran from the vehicle. Inside the vehicle, officers found cocaine, two substances that contained a mixture of heroin and fentanyl, alprazolam, oxycodone, amphetamine, buprenorphine, and cannabis. They also found evidence of narcotics distribution inside the vehicle including plastic baggies, two scales, scissors, and a firearm. Both Dilworth and Cowart’s DNA were found on the firearm recovered from the vehicle.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorneys Michael Gordon, Charlie Connally, and Samantha Newman. The forfeiture was handled by Assistant United States Attorney James Muench.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Springfield Man Sentenced to 48 Months in Federal Prison for Wire Fraud in Connection with Fraudulent Scheme to Obtain Pandemic Unemployment BenefitsRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. Chief Judge Shelly D. Dick sentenced Chaz Ryan Watkins, age 35, of Springfield, Louisiana, to 48 months in federal prison following his conviction for wire fraud in connection with a fraudulent scheme to obtain pandemic unemployment benefits. The Court further sentenced Watkins to serve two years of supervised release following his term of imprisonment and ordered him to pay restitution in the amount of $178,620.00 to victims, including the Louisiana Workforce Commission (“LWC”), Texas Workforce Commission (“TWC”), Internal Revenue Service (“IRS”), and the Federal Emergency Management Administration (“FEMA”).
According to admissions made as part of his guilty plea, between December 2019, and continuing through at least September 2021, Watkins obtained the personal identifying information (“PII”) of inmates incarcerated in Louisiana prisons and of other individuals, including names, birth dates, and Social Security numbers. Watkins submitted claims for pandemic unemployment assistance (“PUA”) benefits to the Louisiana Workforce Commission (“LWC”) in the names of the inmates, who were ineligible for such benefits, and in the names of other individuals, often without the individual’s knowledge or consent. In these applications, Watkins requested that the PUA benefits be transmitted via direct deposit to his financial accounts or via pre-paid debit cards mailed to addresses under his control. Once the funds were received, Watkins withdrew the funds as cash from ATMs at various financial institutions in the Middle District of Louisiana. Watkins received over $95,000 in fraudulent unemployment benefits.
Louisiana Inspector General Stephen Street commented, “Anyone audacious enough to steal taxpayer money during a state of emergency should expect to wind up in prison. Hopefully the sentence imposed upon Mr. Watkins today will make that clear to other aspiring fraudsters. The Louisiana OIG remains committed to pursuing criminal outcomes for individuals who commit fraud during public emergencies.” Street added, “I want to thank United States Attorney Ron Gathe and his staff, and our partners at the US Department of Homeland Security OIG and US Department of Labor OIG for our continued successful partnership.”
This matter was investigated by the Louisiana Office of State Inspector General, the U.S. Department of Homeland Security, Office of Inspector General, and the U.S. Department of Labor, and was prosecuted by Assistant United States Attorney Kristen Lundin Craig.
Shiprock Woman Pleads Guilty to Involuntary ManslaughterRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Courtney Frank pled guilty to involuntary manslaughter. Frank, 19, of Shiprock, and an enrolled member of Navajo Nation, will remain on conditions of release (including adherence to an alcohol-monitoring bracelet) pending sentencing, which has not been scheduled.
According to court documents, on September 28, 2022, Frank was intoxicated when she drove her car over the center line of Mesa Farm Road in Shiprock and struck another car head-on. The driver of the other vehicle, Jane Doe, died at the scene. In the plea agreement and in court, Frank acknowledged she was fully responsible for the wreck and Jane Doe’s death.
At sentencing Frank faces up to eight years in prison, followed by a term of up to three years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the New Mexico State Police. Assistant United States Attorney Zachary C. Jones is prosecuting the case.
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Seven Area Men Arrested After Being Charged in a 16 Count Indictment Alleging Mail Theft, Mail Fraud, and ConspiracyRead the Press Release
CLEVELAND – Rebecca C. Lutzko, United States Attorney for the Northern District of Ohio, announced that a federal grand jury sitting in Cleveland returned a sixteen-count indictment charging seven men with Mail Fraud, Aggravated Identity Theft, Conspiracy to Commit Bank Fraud, and Wire Fraud.
A joint investigation by the U.S. Postal Inspection Service, Highland Heights Police Department, North Royalton Police Department, Brooklyn Heights Police Department, Shaker Heights Police Department, and USPS Office of Inspector General led to the arrests on September 11, 2023, of Nathaniel Sturdivant, 23, Euclid; Marcus Winn, 20, Cleveland; Dashawn Dumas, 24, Cleveland; Mohamed Mohamed, 21, Willoughby Hills; and Jayland Ware, 21, of Shaker Heights. On September 13, 2023, Larry Reynolds, 21, Maple Heights; and Lorenzo Nettles, 20, of Euclid, turned themselves in to the U.S. Marshals.
The seven individuals were indicted for their roles in a check-fraud scheme in which checks were stolen from the U.S. mail and altered or forged, then deposited into various accounts for withdrawal.
These arrests follow guilty pleas by eleven other defendants involved in similar criminal activities throughout the Northern District of Ohio. The United States Postal Inspection Service is aggressively investigating cases involving theft from postal carriers and the U.S. Mail.
“Offenses like these compromise the integrity of our mail system and harm not only the individuals whose mail is stolen, but the public at large,” said U.S. Attorney Rebecca C. Lutzko. “The United States Attorney’s Office will continue to work with the United States Postal Inspection Service and other state and local partners to aggressively prosecute criminals who steal from the U.S. Mail and abuse our community’s banks.”
“These recent arrests should serve notice to would be criminals that the U.S. Postal Inspection Service is dedicated to defending the nation’s mail system from criminal activity, preserving the integrity of the U.S. Mail, and protecting United States Postal Service employees and customers”, said Inspector In Charge Lesley Allison. “The U.S. Postal Inspection Service values our law enforcement partners for supporting our mission to protect the integrity of the U.S. Mail.”
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation was conducted by United States Postal Inspection Service and the United States Postal Service, Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Joseph P. Dangelo.
The Postal Inspection Service is the federal agency with jurisdiction for investigating crimes against postal carriers and crimes involving the U.S. Mail. Anyone having information about blue collection box thefts should contact USPIS at 1-877-876-2455. All information will be kept confidential.
Serial Bank Robber from Fall River Sentenced to Nearly Five Years in PrisonRead the Press Release
BOSTON – A Fall River man was sentenced today in federal court in Boston for robbing four separate banks in Massachusetts within a five-day period and attempting to rob a fifth bank.
William Sequeira, 60, was sentenced by U.S. District Court Judge Patti B. Saris to 54 months in prison and three years of supervised release. On June 22, 2023, Sequeira pleaded guilty to four counts of bank robbery and one count of attempted bank robbery.
Between Sept. 26, 2022 and Sept. 30, 2022, Sequeira robbed four separate banks in the Fall River and Boston areas. On Sept. 26, 2022 at approximately 1:52 p.m., Sequeira entered the Stop & Shop on Rodman Street in Fall River. There, he approached the Citizens Bank counter and demanded money stating, “listen, this is what's gonna happen, I have a gun and I'll put it against your forehead.” On Sept. 27, 2022 at approximately 2:35 p.m., Sequeira entered the Santander Bank on located on Berkley Street in Boston and threatened to shoot the employees. Specifically, he ran up to a teller and stated, “give me a $100 bill or I’ll put a bullet in your head.” Sequeira did not present a firearm.
The next day, on Sept. 28, 2022 at approximately 4:01 p.m., Sequeira entered the M&T Bank located on Boylston Street in Boston, approached a teller and stated, “I'm going to put a gun to your head if you don't give me the $100 bills.” On Sept. 30, 2022 at approximately 3:15 p.m., Sequeira entered the TD Bank located on Union Street in Boston. There, he told the teller, “give me all the $100s in the drawer,” and “give me all the money before I blow your brains out,” before fleeing on foot with money from the teller.
An investigation by law enforcement led to the identification of Sequeira as the suspect in each of the robberies. As a result, on Oct. 5, 2022, upon being informed that Sequeira was on a train enroute to Boston, law enforcement conducted surveillance in the Back Bay area suspecting that Sequeira was planning another robbery. Sequeira was subsequently spotted entering the Citizens Bank located on Boylston Street in Boston. There, he approached the teller, said “Give me hundreds,” and threatened to shoot the teller if they did not move fast enough. Sequeira was immediately apprehended.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement. Valuable assistance was provided by the Fall River Police Department and the Suffolk County District Attorney’s Office. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit prosecuted the case.
Sean Williams Indicted for Production of Child PornographyRead the Press Release
GREENEVILLE, Tenn. – On September 12, 2023, a federal grand jury in Greeneville returned a three-count indictment against Sean Williams, 51, of Johnson City, Tennessee, for producing visual depictions of minors engaged in sexually explicit conduct. Williams appeared in federal court on September 14, 2023, before the Honorable Cynthia Richardson Wyrick, United States Magistrate Judge, and entered a plea of not guilty to the charges in the indictment. The trial has been set for January 23, 2024, before the Honorable J. Ronnie Greer, United States District Court Judge, in United States District Court, in Greeneville, Tennessee.
If convicted, Williams faces a minimum mandatory term of 15 years in prison and up to 30 years in prison as to each count of the indictment. Williams also faces a maximum of a life term of supervision and $250,000 fine as to each count of the indictment.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; and Federal Bureau of Investigation (“FBI”) Special Agent in Charge Joseph E. Carrico made the announcement.
This indictment is the result of an investigation by FBI, Tennessee Bureau of Investigation, Homeland Security Investigation, and First Judicial District Attorney General’s Office.
Assistant U.S. Attorneys Meghan Lynn Gomez and Emily Swecker will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Rochester Man Who Led Police on High Speed Chase Pleads Guilty to Carjacking and Gun ChargeRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Jaden Z. Campbell, 19, of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to carjacking and using or carrying a firearm during a crime of violence. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that in the early morning hours of July 11, 2022, Campbell approached an individual (Victim 1) as Victim 1 walked towards an apartment building near Resolute Street and North Clinton Avenue. Carrying a firearm, Campbell told Victim 1, “give me everything or I’m gonna pop you.” Victim 1 gave Campbell several items, including the keys to his 2006 Infiniti G35. While continuing to point his gun, Campbell forced Victim 1 to start the Infiniti. Campbell then drive away by himself. Once the police located the stolen car, Campbell refused to pull over, instead, leading officers on a chase for approximately 25 minutes through Monroe County. Campbell at times reached speeds of approximately 85 MPH, ultimately crashing the car in a ditch near Quaker Road in Scottsville, NY. During the chase, Campbell also tossed a 9mm pistol from the Infiniti on Cranbrook Drive in Irondequoit, NY.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith, the New York State Police, under the direction of Major Brian Ratajczak, the Monroe County Sherriff’s Office, under the direction of Sheriff Todd Baxter, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of John B. DeVito, Special Agent-in-Charge, New York Field Division.
Sentencing is scheduled for January 17, 2024, at 10 a.m. before Judge Geraci.
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Rochester Man Going to Prison for Assaulting an OfficerRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney Trini E. Ross announced today that Raymond Brock, 30, of Rochester, NY, who was convicted of assaulting a federal officer, was sentenced to serve 12 months in prison by U.S. Magistrate Judge Marian W. Payson.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that on May 2, 2022, Brock was taken into custody by members of the United States Marshals Service Task Force at his Forrester Street residence. After being taken into custody, Brock was uncooperative and refused to walk under his own power. A Task Force Officer tried speaking with Brock about the circumstances of the incident and arrest, during which he was physically resistant and said he was going to spit in the face of the officer. Brock did so, and his spit, which contained blood, struck the officer in the face and went into his mouth.
The sentencing is the result of an investigation by the United States Marshals Service Task Force, under the direction of Marshal Charles Salina.
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Recidivist Sex Offender Sentenced to over 44 Years in Prison for Child Pornography ChargesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Matthew Lee Dale Taylor was sentenced to over 44 years in prison. Taylor, 32, of Hobbs, pled guilty in federal court on July 19, 2023, to transportation of child pornography, possession of obscene visual representations of the sexual abuse of children, and being a registered sex offender committing a felony sex offense involving a minor.
According to court records, on December 6, 2021, the FBI received a Cybertip from the National Center for Missing and Exploited Children that Taylor had uploaded 51 videos containing child pornography to a Dropbox account on July 14, 2021. In his plea, Taylor acknowledged that he knew the videos included children engaged in sexually explicit conduct.
Through diligent investigation, agents also learned that Taylor repeatedly sexually abused a minor he had access to when the minor was between the ages of five and eight years old.
Taylor was previously convicted of possession of a visual medium of sexual exploitation of children in 2017 and was required to register as a sex offender.
Upon his release from prison, Taylor will be subject to lifetime supervised release.
The Roswell Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the NCMEC. Assistant United States Attorney Matilda McCarthy Villalobos is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
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Readout of Assistant Attorney General Kristen Clarke’s Trip to AlabamaRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Fairfield and Birmingham, Alabama, from Sept. 14-15.
On Thursday, Assistant Attorney General Clarke gave the keynote address at the Honors Convocation at Miles College, a Historically Black College in Fairfield that was founded 125 years ago with roots in the Christian Methodist Episcopal Church. In her remarks, she highlighted the college’s esteemed alumni, lauded the accomplishments of the students and detailed the Justice Department’s work to protect civil rights. Read her full remarks here.
In the afternoon, Assistant Attorney General Clarke, along with U.S. Attorney Prim Escalona for the Northern District of Alabama, traveled to Birmingham to participate in a community meeting hosted by the Birmingham Civil Rights Institute and the Alpha Phi Alpha Fraternity Inc. Omicron Lambda Chapter. During the meeting, she discussed the department’s efforts to combat hate crimes, protect voting rights and ensure law enforcement accountability .
Assistant Attorney General Clarke also met with the U.S. Attorney’s Office for the Northern District of Alabama’s staff. She thanked the office’s leadership and staff for their service and continued commitment to protecting civil rights.
On Friday, Assistant Attorney General Clarke delivered remarks at the 16th Street Baptist Church in Birmingham to commemorate the 60th anniversary of the horrific bombing that killed four Black girls, Addie Mae Collins, Denise McNair, Carole Robertson and Cynthia Wesley. In her remarks, she reflected on the tragic bombing, the history of hate in society and the Justice Department’s continued efforts to hold those who commit unlawful acts of race-based violence accountable. Read her full remarks here.
Assistant Attorney General Clarke concluded the trip at Ramsay IB High School, a predominantly Black public school known for its exceptional and high-performing student body. There, she met the principal, Dr. Carolyn Russell-Walker, as well as school leadership. She spoke with students about pursuing careers in public service and encouraged them to continue to achieve excellence in education.
RGV brothers sent to prison after trafficking meth and cocaine via USPSRead the Press Release
McALLEN, Texas – A 28-year-old Monte Alto man has been ordered to federal prison following his conviction for conspiracy to possess with intent to distribute more than 500 grams of meth, announced U.S. Attorney Alamdar S. Hamdani.
Jesus Manuel Castillo Jr. pleaded guilty Sept. 28, 2021.
U.S. District Judge Micaela Alvarez has now ordered Castillo to serve 121 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Jesus Manuel was involved in transporting multiple packages of narcotics over the course of several months.
In June 2020, law enforcement identified two USPS packages that Castillo shipped with a destination for San Antonio. Each contained half a kilogram of meth.
The investigation revealed Castillo would package, sell and transport the narcotics along with his brother Agustin Castillo. In November 2020, law enforcement caught Jesus Castillo in the act transporting a USPS package destined to Florida containing half a kilogram of cocaine.
Agustin Castillo, 38, Monte Alto, had also pleaded guilty and was previously sentenced to 46 months in federal prison.
Previously released on bond, Jesus Castillo was taken into custody following the hearing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assisatnt U.S. Attorney Laura Garcia prosecuted the case.
Quantico, Virginia Man Sentenced to 16 Years in Prison for 2019 Murder in Upper NorthwestRead the Press Release
WASHINGTON – Collin Potter, 30, of Quantico, Va., was sentenced today to 16 years in prison for fatally stabbing Vongell Lugo, of Washington, D.C., in Lugo’s apartment in the Upper Northwest neighborhood of Washington, D.C., announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
On February 3, 2023, Potter pleaded guilty to second degree murder while armed in the Superior Court of the District of Columbia.
According to the government’s evidence, on Sunday, January 6, 2019, at approximately 4:00 a.m., after meeting at a bar, Potter and Lugo were alone together in Lugo’s apartment on Wisconsin Ave., N.W., in Washington, D.C. The defendant, unprovoked, attacked Lugo after grabbing one of Lugo’s kitchen knives. He stabbed and cut Lugo 42 times in the head, neck, and torso. Lugo yelled for help and his cries woke two of his neighbors, both of whom called 911 around 4:14 a.m. Potter then attempted to clean the knife in the kitchen sink. Around 4:20 a.m., the defendant, an active duty Navy sailor, pulled Lugo’s naked body out into the hallway. MPD officers discovered Lugo’s body and the defendant, who was standing naked, uninjured, and covered in Lugo’s blood. They arrested Potter and he has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Acting Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Victim/Witness Advocate Karina Hernandez. Finally, they commended the work of Assistant U.S. Attorneys Nebiyu Feleke, Christian Natiello, and Peter V. Roman, and Deputy Chief Laura Bach, who investigated and prosecuted the case.
Preparing fraudulent joint income tax returns results in prison for tax servicerRead the Press Release
HOUSTON – A tax preparer has been sent to federal prison following his conviction for willfully preparing a false joint 2017 individual income tax return, announced U.S. Attorney Alamdar S. Hamdani.
Fabrice Mahinga pleaded guilty Nov. 29, 2022.
U.S. District Judge Keith P. Ellison has now ordered Mahinga to serve 33 months in federal prison to be immediately followed by one year of supervised release. At the hearing, the court heard additional evidence that Mahninga had a notable criminal history. In handing down the sentence, the court remarked on the seriousness of Mahinga’s criminal conduct, particularly given his status as a refugee in the United States.
As part of his plea, Mahinga admitted that from 2016 to 2018, he operated Kennedy Tax Service located in Houston. He admitted he often claimed fake Schedule C items, education and fuel tax credits on the returns he prepared.
In 2019, he assisted with the preparation of a tax return that should have resulted in a tax owed of $42. Mahinga added to the return a false Schedule C and false credits that resulted in a false claim for an income tax refund of $4,257 from the IRS. A copy of the return reflected a false income tax refund of a lesser refund - $3,259 - when the refund claimed on the return filed with the IRS was $4,257.
Mahinga took responsibility of $270,612 of loss to the IRS and agreed to pay $182,212 in restitution.
Mahinga was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS - Criminal Investigation conducted the investigation. Former Assistant U.S. Attorney (AUSA) Charles J. Escher and AUSA Christian T. Latham prosecuted the case.
Pittsburgh Resident Sentenced to 120 Months in Prison for Possessing Firearms in Furtherance of Drug Trafficking CrimesRead the Press Release
PITTSBURGH, PA – Daryl Williams was sentenced to 120 months in prison for possessing firearms in furtherance of drug trafficking crimes, United States Attorney Eric G. Olshan announced today.
Williams, age 24 of Pittsburgh, was sentenced by United States District Judge Cathy Bissoon. Judge Bissoon ordered Williams to serve five years of supervised release following his prison sentence.
Williams pled guilty last year to (1) possession of a firearm in furtherance of a drug trafficking crime on May 6, 2018; and (2) to possession of another firearm in furtherance of another drug trafficking crime on May 29, 2018. Williams was on bond for the May 6 crime when he committed the May 29 crime. Williams possessed the firearms to further his fentanyl and heroin trafficking.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Greentree Police Department, the Pittsburgh Police Department, the Federal Bureau of Investigation, and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the convictions and sentence in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Physical Therapist Convicted for Paying Health Care KickbacksRead the Press Release
A federal jury in the Southern District of Florida convicted a Florida woman yesterday for paying kickbacks in exchange for Medicare patient referrals.
According to court documents and evidence presented at trial, Nelly Anderson, 58, of Bay Harbor Islands, was the owner of Dial 4 Care, a business that provided home health services to Medicare beneficiaries. She hired multiple marketers and paid them kickbacks in exchange for patient referrals. Anderson then caused the submission of claims to Medicare for home health services that were procured through the payment of illegal kickbacks.
The jury convicted Anderson of conspiracy to defraud the United States and pay health care kickbacks, and two counts of paying kickbacks in connection with a federal health care program. She is scheduled to be sentenced on Dec. 5 and faces a maximum penalty of five years in prison for the conspiracy count and 10 years in prison for each of the kickback offenses. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Jeffrey Veltri of the FBI Miami Field Office; and Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), Miami Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorneys Jessica Massey and Charles Strauss of the Criminal Division’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Marx Calderon for the Southern District of Florida is handling asset forfeiture aspects of the case. Trial Attorney Patrick J. Queenan of the Criminal Division’s Fraud Section assisted with the investigation.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Pearl River Man Sentenced to Ten Years in Prison for Drug Trafficking on Choctaw Indian ReservationRead the Press Release
Jackson, Miss. – A Pearl River man was sentenced to 120 months in federal prison for conspiracy to possess with intent to distribute methamphetamine on the Choctaw Indian Reservation, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
According to court documents, Antoniel Thomas Jr. 29, of the Pearl River Community of the Choctaw Indian Reservation, distributed methamphetamine on the Choctaw Indian Reservation from January 2020 to February of 2020.
In August of 2020, a federal grand jury indicted Thomas in a four-count indictment involving the possession and distribution of methamphetamine on the Choctaw Indian Reservation. On January 27, 2021, Thomas entered a plea of guilty to count one of the indictment charging conspiracy to possess with the intent to distribute methamphetamine.
The case was investigated by the Choctaw Police Department of the Mississippi Band of Choctaw Indians, the U.S. Department of Interior Bureau of Indian Affairs, and the Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Kevin J. Payne and Special Assistant United States Attorney Brian Burns.
Pawn Shop Owner Sentenced for $744,000 Scheme to Sell over 14,000 Stolen Items OnlineRead the Press Release
KANSAS CITY, Mo. – The owner of a Kansas City, Mo., pawn shop was sentenced in federal court today for engaging in a $744,000 scheme to fence more than 14,500 stolen items and sell them on eBay.
Dennis G. Russell, 66, was sentenced by U.S. District Judge Howard F. Sachs to 20 months in federal prison without parole. The court also ordered Russell to pay a $100,000 fine and to forfeit to the government $744,222, which represents the proceeds obtained from the conspiracy.
On March 24, 2023, Russell pleaded guilty to one count of conspiracy to transport stolen property across state lines. During the scheme, Russell was one of two members of the board of directors of Rison of KC, Inc., which does business as National Pawn at 6223 E. Truman Road in Kansas City, Mo. Rison of KC is also charged with the same offense but has entered into a deferred prosecution agreement with the U.S. Attorney’s Office.
Russell admitted that he participated in a nearly five-year-long conspiracy from Jan. 1, 2017, to July 27, 2021, to purchase items he knew had been stolen from various retail locations in the Kansas City metropolitan area, then sell those items on eBay. Russell shipped approximately 14,672 stolen items across state lines, resulting in gross proceeds of approximately $744,222.
Multiple thieves, known as “boosters,” stole items from Target, Walmart, Home Depot, Lowe’s, CVS, Walgreens, and other retail locations. They sold such stolen items as robot vacuum cleaners, textbooks, Roku and Google Chromecast television streaming devices, and Crest Whitestrips to Russell at a fraction of their retail price. Russell then posted the stolen items for sale on eBay, using one of two accounts, and shipped them to purchasers in numerous other states.
According to court documents, Russell continued his scheme during the coronavirus pandemic. In fact, 2020 was his most profitable year, selling 7,089 stolen items on eBay and receiving $324,842 in gross proceeds. In one instance, from Feb. 20 to April 2, 2020, two boosters — who were working in tandem — provided him with 641 stolen items.
Russell only stopped his illegal conduct after a federal search warrant was executed at National Pawn and he was served with a target letter. On Oct. 21, 2021, law enforcement officers executed a search warrant at National Pawn and seized 3,400 items, which Russell and National Pawn do not contest were stolen property and which have been forfeited to the government.
Rison of KC has entered into a deferred prosecution agreement with the U.S. Attorney’s Office. Under the terms of that agreement, the business admits to the criminal conspiracy and accepts responsibility for the acts of its officers and employees. The government will defer prosecution of Rison of KC for that conduct during the three-year term of the agreement and will not continue with prosecution if the business fully complies with its obligations under the agreement, which include:
- National Pawn must keep a current list of all employees, all financial accounts, and all auction websites it utilizes;
- National Pawn must obtain and retain a verifiable third-party receipt for any new product purchased;
- Russell must not work at or profit from National Pawn.
This case was prosecuted by Assistant U.S. Attorneys Nicholas Heberle, Matthew Wolesky, and Anthony Brown. It was investigated by the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.
Owner of Temporary Employment Agency Sentenced for Tax Fraud and Workers Compensation Insurance SchemeRead the Press Release
BOSTON – A Dorchester woman was sentenced today in federal court in Boston for tax and fraud offenses in connection with her operation of a temporary employment agency.
Dam Ngoc Luong, 70, was sentenced by U.S. District Court Judge Leo T. Sorokin to one year and one day in prison and three years of supervised release. Luong was also ordered to pay $3,993,169 in restitution to IRS and $155,870 in restitution to Traveler’s Insurance Co. On April 18, 2023, Luong pleaded guilty to two counts of filing false corporate and individual tax returns, three counts of failure to collect and pay over employee taxes and one count of mail fraud.
From at least 2015 through 2019, Luong owned and operated Four Seasons Temp, Inc., an agency providing temporary workers for client businesses. A temporary employment agency is responsible for paying wages to the employees, processing employee payroll, collecting and paying all employee payroll taxes and maintaining workers’ compensation insurance to protect employees who suffer work-related injuries. The agency collects payments from the client businesses to cover the agency’s expenses and a profit for the agency.When collecting payments from business clients of her temporary employment agency, however, Luong cashed most checks rather than deposit the funds into her business account. Then, on annual corporate tax returns, Luong reported to the IRS only the amounts deposited to the business account and failed to pay federal taxes on more than $14 million of the company’s income. Additionally, because Luong created Four Seasons as an S-corporation, the net business income and expenses flowed through to her Form 1040 individual tax returns. As a result, Luong failed to report more than $3 million in pass-through income and failed to pay $885,000 in personal income taxes.
As the owner of the company, Luong also had an obligation to withhold taxes from wages paid to the employees. Despite this obligation, Luong paid more than $12 million of employee wages in cash “under the table.” She failed to withhold taxes from the cash wages and failed to pay more than $3 million in employment taxes she owed to the IRS.
Finally, Luong defrauded the insurance carrier she engaged to provide workers’ compensation insurance coverage for employees, by concealing the cash wages paid to her employees. By concealing the wages she paid, Luong paid lower workers’ compensation insurance premiums and defrauded the insurance carrier of $155,000 in premiums she should have paid.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
North Tonawanda Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Daniel Rodriguez, 40, of North Tonawanda, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to possession with intent to distribute 500 grams or more of cocaine and being a felon in possession of a firearm and ammunition. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine up to $8,000,000.
Assistant U.S. Attorney Evan K. Glaberson, who is handling the case, stated that leading up to September 11, 2020, Rodriguez and co-defendant Adrienne Czosnyka resided together on Center Avenue in North Tonawanda. Rodriguez was a suspect in an investigation being conducted by the Town of Tonawanda Police Department. On September 11, 2020, investigators executed a search warrant at the Center Avenue residence and on a vehicle belonging to defendant Czosnyka. They recovered over 500 grams of cocaine, four digital scales, 10 cellular telephones, and over $4,700 in currency. Investigators also recovered a 12-gauge shotgun, and three rounds of ammunition. Rodriguez was previously convicted of felonies in 2001 and 2007, and is legally prohibited from possessing firearms.
In addition, co-defendant Adrienne Czosnyka pleaded guilty to misdemeanor possession of cocaine and faces up to a year in prison.
The pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarentino, III, New York Field Division; the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger; the North Tonawanda Police Department, under the direction of Chief Keith T. Glass; and the New York State Police, under the direction of Major Eugene Staniszewski.
Sentencing is scheduled for December 5, 2023 before Chief Judge Elizabeth A. Wolford.
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New Jersey Construction Company Operator Pleads Guilty to Tax Crimes and Bankruptcy FraudRead the Press Release
A New Jersey man pleaded guilty yesterday to tax evasion, employment tax crimes, aiding the filing of false tax returns and making false statements in bankruptcy.
According to court documents and statements made in court, Zeki Donuk, of Landing, operated a construction business first under the name Titan Builders LLC and later as Titan Steel Construction LLC (collectively, “Titan”). From at least 2016 through 2019, Donuk cashed checks payable to Titan instead of depositing them into business bank accounts. Donuk concealed the cashed checks and did not report them either as gross receipts on Titan’s corporate tax returns or as income on his or his wife’s personal returns.
As part of his plea, Donuk admitted that from the third quarter of 2016 through the third quarter of 2017, he also did not collect, account for or pay over to the IRS employment taxes withheld from employees’ wages, despite a legal obligation to do so. For those quarters, Donuk also did not file quarterly employment tax returns on behalf of the businesses.
In 2019, Donuk made false statements on documents he filed in a personal bankruptcy case. Specifically, he concealed from the bankruptcy court that he owned a vacation property in Pennsylvania, had signatory authority over certain bank accounts, owed tax debts to the IRS and operated his construction business as Titan Builders and Titan Steel.
U.S. District Judge Esther Salas for the District of New Jersey set sentencing for Jan. 4, 2024. Donuk faces a maximum penalty of five years in prison for each count of tax evasion, failure to account for and pay employment taxes and bankruptcy fraud, and a maximum penalty of three years in prison for each false return. He also faces 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 Philip R. Sellinger for the District of New Jersey made the announcement.
IRS-Criminal Investigation, the FBI and the Treasury Inspector General for Tax Administration are investigating the case.
Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Benjamin Levin for the District of New Jersey are prosecuting the case.
New Hampshire Doctor Indicted for Unlawfully Distributing Opioids and BenzodiazepinesRead the Press Release
CONCORD – A doctor practicing in the north country of New Hampshire was indicted in connection with his unlawful distribution of opioids and benzodiazepines, U.S. Attorney Jane E. Young announces.
Robert G. Soucy Jr., D.O., 70, of Columbia, New Hampshire, was indicted on 12 counts of distribution of controlled substances. Soucy made his initial appearance in federal court today.
According to court documents and statements made in court, Dr. Soucy allegedly distributed fentanyl, oxycodone, hydromorphone, methadone, lorazepam, and diazepam to individuals outside the usual course of professional practice, and without a legitimate medical purpose. He recently surrendered his Drug Enforcement Administration registration and also did not renew his medical license, and, therefore, is no longer permitted to prescribe controlled substances.
If convicted, Dr. Soucy faces a maximum penalty of 20 years in prison on each count.
The New England Prescription Opioid (NEPO) Strike Force led the investigation. The case is being prosecuted by Assistant U.S. Attorney Geoffrey W.R. Ward of the District of New Hampshire’s United States Attorney’s Office and Trial Attorney Patrick J. Queenan of the U.S. Department of Justice’s Fraud Section.
The NEPO Strike Force is a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, the U.S. Attorneys’ Offices for three federal districts, as well as law enforcement partners at the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), U.S. Drug Enforcement Administration (DEA), and the FBI. The mission of the NEPO Strike Force is to identify and investigate health care fraud schemes in the New England region, and to effectively and efficiently prosecute individuals involved in the illegal distribution of prescription opioids and other prescribed controlled substances. The NEPO Strike Force primarily targets criminal conduct by physicians, pharmacists, and other medical professionals, focusing upon both health care fraud and drug diversion offenses, as relevant based upon the facts of the particular case.
Medications obtained illicitly are very dangerous as they are often not what they appear, and frequently contain contaminants and extremely potent substances such as fentanyl that greatly increase the risk of overdose and death.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Navmar to Pay $4.4 Million to Settle False Claims Act Allegations Regarding Double-billing and Cost-ShiftingRead the Press Release
Navmar Applied Sciences Corporation (Navmar), headquartered in Pennsylvania, has agreed to pay $4.4 million to resolve allegations that it violated the False Claims Act by knowingly double billing and shifting certain labor and material costs under a series of contracts with the Department of the Navy (Navy) to manufacture, design and test emerging intelligence, surveillance and reconnaissance technologies.
The United States alleged that Navmar knowingly billed certain labor and material costs on one Navy contract, subsequently billed the same costs on another contract and was therefore paid twice for the same costs. The United States further alleged that Navmar knowingly and improperly shifted material costs incurred under certain contracts to other contracts in violation of the Federal Acquisition Regulation requirement that costs incurred under a contract be allocable to that contract, resulting in Navmar recovering costs it otherwise would not have.
“Companies that do business with the government must ensure that they are properly billing the government for the goods or services that they provide,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who misuse taxpayer funds for their own self-enrichment.”
“This settlement demonstrates the Justice Department’s commitment to take appropriate action when it determines that taxpayer dollars have been double-billed and improperly accounted for,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Cases such as this one should be seen as a warning to defense contractors that false claims have no place in military purchasing.”
“Investigating allegations of cost mischarging on Department of Defense (DoD) contracts is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DoD Office of Inspector General,” stated Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “The DCIS is committed to working with the Naval Criminal Investigative Service (NCIS) and the Justice Department to protect the integrity of the DoD procurement process. The Defense Contract Audit Agency’s Operations Investigative Support Division provided valuable expertise during this investigation.”
“Procurement fraud threatens military readiness and therefore poses a significant threat to our national security,” said Special Agent in Charge Greg Gross of the NCIS Economic Crime Field Office. “NCIS remains committed to ensuring the good stewardship of U.S. taxpayer dollars by thoroughly investigating all allegations of fraud that damage the integrity of the Department of the Navy procurement process.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from the DCIS, NCIS, Defense Contract Audit Agency and Defense Contract Management Agency.
The matter was handled by Trial Attorney K.L. Grace Moseley of the Justice Department's Civil Division and Assistant U.S. Attorneys Landon Jones and Mark Sherer for the Eastern District of Pennsylvania.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
navmar_settlement_agreement_executed_sept_15_2023.pdfNavmar Applied Sciences Corporation Agrees to Pay $4.4 Million to Resolve Claims of Double-Billing and Cost-Shifting Under U.S. Navy ContractsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that Navmar Applied Sciences Corporation (NASC), headquartered in Warminster, Pennsylvania, has agreed to pay $4.4 million to resolve allegations that NASC violated the False Claims Act by knowingly and improperly double-billing and shifting certain labor and material costs under a series of contracts with the U.S. Department of the Navy. Separately, NASC has also agreed to resolve administrative claims arising out of an audit by the Defense Contract Audit Agency of NASC’s incurred cost proposals for Fiscal Years 2011, 2012, and 2013.
The United States’ allegations under the False Claims Act arise from a series of contracts, awarded by the Navy to NASC between 2010 and 2012, for enhanced intelligence, surveillance, and reconnaissance systems, hardware, maintenance technical support services, and the development and rapid deployment of various advanced sensors and Unmanned Aerial Systems.
The United States alleged that under those government contracts, NASC knowingly and improperly billed the Navy for certain labor and material costs on one contract, and then billed the same costs on another contract, and was improperly paid twice. The United States further alleged that in multiple instances, NASC knowingly and improperly shifted the costs of materials from one contract to another, to avoid cost ceilings and maximize payments from the government to which NASC was not entitled.
“This settlement demonstrates the Justice Department’s commitment to take appropriate action when it determines that taxpayer dollars have been doubled-billed and improperly accounted for,” said U.S. Attorney Romero. “Cases such as this one should be seen as a warning to defense contractors that false claims have no place in military purchasing.”
“Investigating allegations of cost mischarging on Department of Defense (DoD) contracts is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DoD Office of Inspector General,” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “The DCIS is committed to working with the Naval Criminal Investigative Service and the Department of Justice to protect the integrity of the DoD procurement process. The Defense Contract Audit Agency’s Operations Investigative Support Division provided valuable expertise during this investigation.”
“Procurement fraud threatens military readiness and therefore poses a significant threat to our national security,” said Special Agent in Charge Gregory Gross of the NCIS Economic Crime Field Office. “NCIS remains committed to ensuring the good stewardship of U.S. taxpayer dollars by thoroughly investigating all allegations of fraud that damage the integrity of the Department of the Navy procurement process.”
The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the Eastern District of Pennsylvania, the U.S. Department of Justice Civil Division, Commercial Litigation Branch, Fraud Section, with investigative assistance from the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, the Defense Contract Audit Agency, and the Defense Contract Management Agency.
The matter is being handled in the U.S. Attorney’s Office by Assistant U.S. Attorneys Landon Y. Jones and Mark J. Sherer, and Auditor Dawn Wiggins.
Morgantown physician charged with tax fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – David M. Anderson, age 62, of Morgantown, West Virginia, has been charged with filing a false tax return.
According to court documents, Anderson, a physician, filed false tax returns that understated his taxable income.
Assistant U.S. Attorney Sarah Wagner is prosecuting the case on behalf of the government.
The Internal Revenue Service Criminal Investigation investigated.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Milwaukee Man Sentenced to 144 Months for Drug TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Travis Lee Young, 47, Milwaukee, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 144 months for possessing with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine and maintaining a drug trafficking place. Young pleaded guilty to these charges on June 6, 2023. This period of imprisonment will be followed by 5 years of supervised release.
On August 3, 2022, officers arrested Young at a hotel in Eagle River, Wisconsin. Young had been connected to a purchase of methamphetamine two weeks prior at the same hotel. Inside of Young’s hotel room, officers found over 600 grams of methamphetamine, over 940 M-30 fentanyl pills, and 17 grams of cocaine. These controlled substances were packaged for distribution. Officers also found a loaded semiautomatic firearm underneath the mattress of the bed. Young’s DNA was found on the firearm.
A witness involved in this investigation told officers that they had purchased methamphetamine from Young before. The same witness had driven Young to and from Milwaukee on drug-related trips around Wisconsin. A search of Young’s cellphone revealed that Young had been having multiple conversations about his drug trafficking.
Young was convicted in 2017 of the felony offenses of possession of a firearm by a felon and a burglary in Milwaukee County. Young was still serving the extended supervision portion of those sentences at the time of his arrest. Young had been convicted of eight felonies before the date of this arrest.
After his arrest, Young attempted to persuade witnesses to change their stories by sending letters from the jail, instructing them to recant and blame a different individual for the drugs and firearm.
At sentencing, Judge Peterson remarked that these crimes were really serious as involved a significant quantity of drugs. The judge voiced his concern that a firearm was involved, remarking that the gun was there to protect Young’s drug trafficking. The judge opined that Young had been a bad influence on the community. He stated that Young’s drug dealing harmed the public, as he was “making money off the illness of others.” The judge considered Young’s criminal history to be “serious” and “aggravated”, specifically focusing on Young’s previous involvement in violent crimes.
The charges against Young were the result of an investigation conducted by the Vilas County Sheriff’s Office, Eagle River Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Kathryn E. Ginsberg.
Mexican Man Charged with Illegal ReentryRead the Press Release
BOSTON – A Mexican man has been charged with illegally reentering the United States after deportation.
Ramon Alfaro-Orona, 38, was charged with one count of unlawful reentry of a deported alien. Following an initial appearance in federal court in Boston this afternoon, Alfaro-Orona was detained pending a hearing scheduled for Sept. 19, 2023 at noon.
According to the charging documents, Alfaro-Orona was deported from the United States on eight prior occasions, with the most recent being Sept. 30, 2014. It is alleged that sometime after his September 2014 removal, Alfaro-Orona unlawfully reentered the United States. On Aug. 23, 2023, Alfaro-Orona was taken into custody by immigration authorities following his arraignment in Leominster District Court for three counts of larceny by check over $1,200.
Alfaro-Orona was convicted for unlawful reentry on two prior occasions in November 2013 and March 2014.
The charge of unlawful reentry of a deported alien provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Brian Sullivan of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man Sentenced for Strangling Spouse in JapanRead the Press Release
A Michigan man was sentenced to one year and a day in prison for assaulting and strangling his spouse at their off-base residence outside of U.S. Army Garrison Japan in Sagamihara, Japan.
According to court documents, on July 19, 2021, Robert Hammock, 39, of Detroit, and his spouse got into an argument inside their residence. The argument escalated and Hammock punched his spouse in the eye twice, hit her on the head and body, pushed her to the ground, and then strangled her. She was able to escape only when Hammock stopped assaulting her as he attempted to take her cell phone, which she had dropped due to the force of the strangulation. The victim sustained injuries, including bruising around her eye and on her cheekbone, and lacerations on her neck.
On May 4, Hammock pleaded guilty in the Eastern District of Michigan to one count of assault of a spouse by strangulation.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Dawn N. Ison for the Eastern District of Michigan, and Special Agent in Charge Michael DeFamio of the Department of the Army Criminal Investigation Division (Army CID) Far East Field Office made the announcement.
Army CID investigated the case.
Trial Attorney Chelsea Schinnour of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael Taylor for the Eastern District of Michigan prosecuted the case.
Linesville Resident Pleads Guilty to Violating Federal Firearm LawsRead the Press Release
ERIE, Pa. - A resident of Linesville, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearms laws, United States Attorney Eric G. Olshan announced today.
Suzanne Ray King, 48, 15520 Hindman Road, Linesville, Pennsylvania pleaded guilty to two counts before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that in and around August 2021, King possessed three firearms while being a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm. In addition, one of the firearms was an illegal, unregistered sawed off shotgun.
Judge Baxter scheduled sentencing for January 9, 2024, at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued King on bond.
Assistant United States Attorney Molly W. Anglin is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police conducted the investigation that led to the prosecution of King.
Leader of International Gift Card Fraud Scheme ConvictedRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Chinese national residing in Washington, D.C. yesterday on charges of conspiracy, access device fraud, money laundering, and aggravated identity theft.
According to court records and evidence presented at trial, Qinbin Chen, 29, masterminded a criminal conspiracy that obtained, trafficked, used, and laundered gift cards and debit cards purchased by victims, who were mostly elderly, from across the United States. The victims were manipulated into buying Walmart gift cards by fraudsters who told the victims a range of lies, such as their social security numbers had been compromised, their bank accounts had been hacked, or there was an issue with their computer software. The victims sent the gift cards to fraudsters who soon transferred them to Chen. Chen employed conspirators to use the Walmart gift cards to buy other gift cards. Chen then sold those “clean” gift cards to overseas buyers. Though Chen reported little legitimate income, his bank accounts showed hundreds of thousands of dollars in incoming international wires. Evidence at trial suggested that Chen trafficked about $7 million in fraudulently obtained gift cards.
Chen faces a mandatory minimum of two years in prison and a maximum penalty of 20 years in prison when sentenced on December 18. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Chen is the seventh defendant convicted as part of this investigation. Co-conspirators He Li, 45; Shouming Sun, 44; Jin Hong, 40; Yuchen Zhang, 26; Mouluan Wu, 47; and Zhizhan Chen, 26, have pleaded guilty to related charges.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Javan S Wilson, Special Agent in Charge of the U.S. Department of Treasury Office of the Inspector General, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the verdict.
The Loudoun County Sherriff’s Office also assisted in the prosecution of Chen.
Assistant U.S. Attorneys Christopher Hood and Kenneth R. Simon, Jr. are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-216.
Joplin Man, Woman Indicted for Mail Theft ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man and woman have been indicted by a federal grand jury for their roles in a conspiracy to steal mail from Joplin residents and in a separate conspiracy to commit bank and wire fraud.
Aaron M. Blake, 27, and Emily Anna-Lee Sturgis, 30, were charged in a nine-count indictment returned by a federal grand jury in Springfield, Mo., on Aug. 29, 2023.
The federal indictment alleges that Blake and Sturgis participated in a conspiracy to commit bank fraud and wire fraud and, in a separate count, a mail theft conspiracy, from December 2022 to Jan. 26, 2023.
According to the indictment, Blake and Sturgis stole checks, credit cards, debit cards, cash, and documents that contained personal identification information from the mailboxes of their victims in Joplin. The indictment alleges they stole Pandora jewelry from one victim’s mailbox, and a Christmas card that contained a $500 check from another victim’s mailbox. The indictment also alleges they stole a W-2 form from a mailbox and used it to fraudulently obtain a credit card; when the credit card was mailed to the victim’s address, they allegedly stole it from the mailbox as well. In another instance, the indictment says, they stole a credit card from a victim’s mailbox and used it to make purchases.
Blake and Sturgis allegedly used the stolen credit cards to purchase items from area businesses. They allegedly used the stolen personal identification information of their victims (such as bank account numbers, bank routing numbers, dates of birth, and Social Security numbers) to open other credit and bank accounts.
Blake and Sturgis rented a motel room in Carthage, Mo., the indictment says, where they kept the stolen mail.
In addition to the two conspiracy charges, Blake and Sturgis are charged together in three counts of bank fraud and three counts of possessing stolen mail. Blake is also charged with one count of aggravated identity theft.
Deputies with the Jasper County, Mo., Sheriff’s Department responded to a call on Jan. 26, 2023, about the occupants of a blue sedan stealing mail and parcels from residences. The deputies located Blake and Sturgis at Casey’s General Store in Carl Junction, Mo., in possession of various pieces of stolen mail, and arrested them.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the U.S. Postal Inspection Service, the Carthage, Mo., Police Department and the Jasper County, Mo., Sheriff’s Department.
Jersey City Attorney Admits Wire Fraud, Aggravated Identity Theft, and Tax CrimesRead the Press Release
NEWARK, N.J. – A Jersey City attorney today admitted defrauding his clients of more than $2 million dollars and other crimes, U.S. Attorney Philip R. Sellinger announced.
James R. Lisa, 68, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with one count of wire fraud, one count of aggravated identity theft, one count of obstructing the IRS, one count of failing to file an individual income tax return, and one count of wire fraud while on pretrial release.
U.S. Attorney Philip R. Sellinger“James Lisa used his law license to execute a multimillion-dollar fraud scheme and rip off clients who placed their trust in him. Then, after being charged for that fraud, Lisa committed another when, posing as his own lawyer, he sent a bogus letter to a lender that falsely described the status of his criminal case. Lisa’s multiple criminal acts were serious violations of his oath as an officer of the court and a betrayal of his clients’ trust. He will now face justice for these crimes. The people of New Jersey must be able to rely on their attorneys without having to worry that they are being defrauded. Lisa’s guilty plea should reassure the public that our office will bring the full weight of the justice system on attorneys who violate federal the law.”
According to documents filed in this case and statements made in court:
In 2014, Lisa was retained by a family to help repatriate millions of dollars that had been transferred by other family members to offshore bank accounts decades earlier. Lisa was also retained to help resolve the tax issues related to the repatriation of the funds. In 2015, Lisa successfully repatriated more than $6 million of the family’s funds, but proceeded to falsely advise the family that the funds remained offshore. In 2017, Lisa provided $4 million of the repatriated funds to the family but continued to falsely represent that the remaining $2 million remained beyond his control.
Lisa falsely told the family that he successfully resolved the tax implications of repatriating the funds. In 2016, Lisa sent the family a fraudulent IRS “closing agreement” reflecting an agreement with the IRS for the family to pay $3 million in taxes and penalties for the repatriated funds. In 2018, Lisa sent the family another fraudulent closing agreement reflecting an agreement with the IRS for the family to pay $2 million in taxes and penalties because only $4 million was purportedly repatriated. In fact, the IRS never entered into these agreements and the IRS employees who purportedly signed the documents never did so. When one member of the family was audited by the IRS, the IRS issued Lisa a summons for records related to the family’s assets. In response to the summons, Lisa produced false and fraudulent documents suggesting that the IRS had agreed to closing agreements with the family.
In January 2023, Lisa was arrested after being charged with this fraud scheme and placed on pretrial release. One condition of his pretrial release was that he not commit another crime. In April 2023, Lisa committed wire fraud when he applied for a $22,000 loan. In order to obtain the loan, Lisa caused the creation and submission to the lender of a fraudulent document that purported to be a letter from the attorney then representing him in his criminal prosecution. Lisa caused the letter to be sent in order to defraud the lender about the status of the criminal prosecution so that the lender would approve the loan.
Lisa also admitted that he failed to file individual income tax returns for tax years 2015 through 2022, and as a result, caused a tax loss to the IRS of at least $550,000.
The count of wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest. The count of aggravated identity theft carries a statutory mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment, and a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest. The count of obstructing the IRS carries a maximum penalty of three years in prison and a fine of up to $250,000. The count of failure to file a tax return carries a maximum penalty of one year in prison and a fine of up to $100,000. The count of wire fraud while on pretrial release carries a maximum penalty of 10 years in prison, which must run consecutively to any other term of imprisonment, and a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest. Sentencing is scheduled for Jan. 25, 2024.
U.S. Attorney Sellinger credited special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), Mid Atlantic Field Division, under the direction of Special Agent in Charge Andrew McKay; and IRS - Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
lisa.sinformation.pdfIndictment in Nine Year Old Cold CaseRead the Press Release
WASHINGTON – Dawayne Joseph Spriggs, 37, of Washington D.C. and Prince George’s County, Maryland, was arraigned today on charges stemming from a 2014 cold case involving a stranger sexual assault, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
According to court documents, on July 6, 2014, Spriggs encountered the victim near the Minnesota Ave. Metro station at approximately 1 a.m. He followed her and physically and sexually assaulted her in an alley. After the assault was over, the victim reported the offense to police and obtained a sexual assault examination, including a rape kit. The evidence was timely tested for DNA in 2014 and was entered into a national database. In 2016, the database reported a match between the DNA profile obtained from the rape kit and another sexual assault offense that had been reported in Anne Arundel County, Maryland in 2013. In 2023, detectives with MPD’s Cold Case Sexual Assault Unit obtained a lead as to the assailant’s identity that led them to lawfully collect DNA samples from defendant Spriggs. These DNA samples were tested by both law enforcement entities and resulted in a match to both rape kits.
On September 13, 2023, a District of Columbia Grand Jury returned an indictment charging Spriggs in the D.C. cold case with two counts of First Degree Sexual Abuse and two counts of Third Degree Sexual Abuse. If convicted, Spriggs faces a maximum penalty of 30 years’ imprisonment and/or a fine of $125,000, followed by not less than five years’ supervised release, and would be required to register as a sex offender for the remainder of his lifetime. Trial is scheduled to begin on October 12, 2023, before the Honorable Michael O’Keefe.
The defendant is also currently charged by criminal complaint in Anne Arundel County for unrelated offenses reported in Maryland in 2013.
This case was brought as part of the U.S. Attorney’s Office for the District of Columbia’s Cold Case Sexual Assault Initiative and investigated by MPD’s Sexual Assault Unit. In February 2018, the U.S. Attorney’s Office for the District of Columbia created the Cold Case Sexual Assault Initiative. The goal of the Initiative is to collaborate with law enforcement partners to reinvestigate, solve and bring charges in previously unsolved cases of sexual assault against adults and juveniles. The Cold Case Initiative works with the MPD, the Federal Bureau of Investigation, the United States Marshals Service, and state and local law enforcement agencies in the DMV area.
This case is being investigated by the MPD. It is being prosecuted by Assistant U.S. Attorneys Robert Platt and Amy Zubrensky.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indian Citizen Pleads Guilty to Marriage Fraud ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Vikrant Chauhan, 35, a citizen of India living in Chicago, Illinois, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to commit marriage fraud. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that on April 2, 2018, Chauhan, a citizen of Indian, married a female United States citizen in Worcester, Massachusetts. The marriage was fraudulent in that Chauhan and the female United States citizen were not in a genuine relationship, never resided together, and entered the “contract marriage” only for the purpose of obtaining a Permanent Resident Card. also known as a Green Card, for Chauhan. On June 1, 2018, using his Indian passport, Chauhan submitted an Application to Register Permanent Residence or Adjust Status to the Department of Homeland Security citing the April 2, 2018, fraudulent marriage. In May 2019, Chauhan was interviewed by U.S. Citizenship and Immigration Services (USCIS), during which his “wife” stated that she lived together with Chauhan in Connecticut. In November 2021, Chauhan was interviewed a second time by USCIS, during which he falsely claimed to continue to reside with his “wife” in Connecticut. He also falsely claimed that his “wife” was pregnant with his child. During the course of the conspiracy, the female United States citizen whom Chauhan married brokered multiple fraudulent marriages that were conducted in Hamburg, NY, and facilitated multiple USCIS interviews that were conducted in Buffalo, NY.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, Citizenship and Immigration Services, Department of Homeland Security, Office of Inspector General, Chicago Field Office under the direction of Special Agent-in-Charge Karen Whalen, the New York State Police, under the direction of Major Eugene Staniszewski, and the Hamburg Police Department, under the direction of Chief Peter Dienes.
Sentencing is scheduled for January 26, 2024 before Judge Lawrence J. Vilardo.
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