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31 October 2023
Two sentenced for drug trafficking in the Eastern PanhandleRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two people have been sentenced for their roles in a drug trafficking operation in Hampshire and Mineral Counties.
Dylan Carl Keckler, age 30, of Augusta, West Virginia, was sentenced today to six years in federal prison for distribution of fentanyl. According to court documents and statements made in court, Keckler sold fentanyl with a purple hue on several occasions. During a search warrant at Keckler ‘s home, officers found fentanyl and drug paraphernalia.
Lisa Gail Crouse, age 42, of Cross Junction, Virginia, was sentenced today to 27 months in prison for conspiracy to possess with intent to distribute and to distribute heroin and fentanyl. Crouse was one of the distributors in the operation.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the cases on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of members from the Federal Bureau of Investigation, the Drug Enforcement Administration, the West Virginia State Police, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department. The Hampshire County Prosecutor’s Office assisted.
U.S. District Judge Gina M. Groh presided.
Two Men Sentenced for International Money Laundering and Bank Fraud SchemeRead the Press Release
BOSTON – Two Nigerian men were sentenced today in federal court in Boston for their roles in an expansive money laundering and bank fraud scheme that resulted in millions in losses from pandemic fraud, romance scams and other online scams.
Osakpamwan Henry Omoruyi, 37, and Osaretin Godspower Omoruyi, 36, both previously of Canton, were sentenced by U.S. District Court Judge Patti B. Saris to 78 months and 72 months, respectively. In June 2023, the defendants were each convicted following an eight-day jury trial of one count of bank fraud, one count of bank fraud conspiracy and one count of money laundering conspiracy.
“This case demonstrates that if you prey on the elderly and the vulnerable through on-line scams, you can rest assured that federal law enforcement will invest the resources to track you down and hold you accountable. These types of romance fraud schemes cause both huge financial and emotional harm,” said Acting United States Attorney Joshua S. Levy.
“What these men did is disgraceful. They cashed in on a public health crisis, stole millions from hard-working Americans who were looking for love online, struggling to feed their families, and keep their businesses afloat, and sent that money to their friends overseas,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “It is critical that every dollar spent in pandemic relief goes to those who need it, not to greedy con artists trying to cheat the system. Anyone who tries to follow in their footsteps will soon find themselves in federal court to answer for their crimes.”
“Osakpamwan Henry Omoruyi and Osaretin Godspower Omoruyi conspired with others to launder the proceeds of multiple illegal schemes, including the defrauding of multiple state workforce agencies by obtaining Pandemic Unemployment Assistance unemployment benefits using stolen identities. We will continue to work with our law enforcement partners to safeguard Department of Labor programs designed to help those that struggled during the COVID-19 pandemic,” said Special Agent-in-Charge Jonathan Mellone, U.S. Department of Labor, Office of Inspector General.
“These scammers strategically targeted and swindled unsuspecting victims,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations (HSI) New England. “Together, with our law enforcement partners, HSI is dedicated to putting a stop to these criminal acts, which inflict financial ruin on so many. Romance scams are a pervasive threat, and with our partners, HSI special agents will ensure that the transnational criminal organizations responsible for such harm are prosecuted.”
“Today’s sentencing sends a strong message: the Diplomatic Security Service is committed to making sure that those who commit fraud schemes, and use false documents to deceive and defraud their victims, face consequences for their criminal actions,” said Matthew O’Brien, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service (DSS) Boston Field Office. “Our strong relationship with the U.S. Attorney’s Office and other law enforcement agencies around the world continues to be essential in the pursuit of justice.”
The defendants opened multiple bank accounts in the names of a fake company and fake people using falsified foreign passports. The defendants then used those accounts to receive the proceeds from various frauds perpetrated by their co-conspirators, including pandemic unemployment assistance fraud, romance scams and other online scams.
The majority of the fraud proceeds came from romance scams, which occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and steal from the victim. In total, between 2019 and 2021, the bank accounts involved in the scheme received more than $2 million in fraud proceeds, most of which was transferred to overseas bank accounts controlled by the defendants and their co-conspirators.
Acting U.S. Attorney Levy, FBI SAC Cohen, DOL-OIG SAC Mellone, HSI SAC Krol, and DSS SAC O’Brien made the announcement. Assistant U.S. Attorneys Christopher J. Markham and Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two Men Charged After Smuggling 22 Undocumented Noncitizens in a Water TruckRead the Press Release
YUMA, Ariz. – Antonio Varela-Verdugo, a U.S. citizen, and Gilberto Villalva, a citizen of Mexico, were charged by complaint on October 25, 2023, with Conspiracy to Transport Illegal Aliens.
The complaint alleges that Varela-Verdugo and Villalva conspired to smuggle 22 undocumented noncitizens in the tank of a water truck. On October 23, 2023, Yuma Station Border Patrol agents followed a water truck suspected of transporting undocumented noncitizens in its tank from California into Yuma, Arizona, where the water truck stopped at a local residence. Across the street, a Honda Civic, operated by Villalva, was suspected of waiting to guide the water truck to a local stash-house. Agents interdicted both vehicles after departing the stash-house and discovered 22 individuals, all citizens of Mexico, stuffed into the tank of the water truck.
A conviction for Conspiracy to Transport Illegal Aliens carries a maximum penalty of up to 10 years in prison, a fine of $250,000, or both, and a term of up to three years supervised release.
A complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Customs and Border Protection's U.S. Border Patrol - Yuma, conducted the interdiction and subsequent investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix Division, Yuma Office, is handling the prosecution.
CASE NUMBER: 23-02657MJ
RELEASE NUMBER: 2023-170_Varela-Verdugo, et. al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Three Sentenced for Paycheck Protection Program Loan Fraud Schemes in the Northern District of OklahomaRead the Press Release
Three Tulsa-area residents who fraudulently applied for Paycheck Protection Program loans were sentenced last week in federal court, announced U.S. Attorney Clint Johnson.
First, on Oct. 23, 2023, U.S. District Judge Paul M. Arias-Marxuach sentenced William Mark Sullivan, 50, to 36 months in prison. Sullivan’s wife, Michelle Cadman-Sullivan, 43, was sentenced on Oct. 25, 2023, to 24 months in prison. The Sullivans pleaded guilty in June of 2022 to conspiracy to commit bank fraud. As a part of this case, the Sullivans fraudulently applied for approximately $2.7 million in Paycheck Protection Program loans from area banks. Judge Arias-Marxuach also ordered William Mark Sullivan and Michelle Cadman-Sullivan to serve 5 years of supervised release following their terms of imprisonment and to pay $743,776.98 in restitution to the Small Business Administration, the federal agency that guaranteed the loans.
In their plea agreements, the Sullivans stated that between April 8, 2020, and May 11, 2020, they conspired together to submit false statements and reports to Arvest Bank and Exchange Bank when they applied for numerous Paycheck Protection Program loans, totaling approximately $2.7 million. The Sullivans submitted false information, false W2s, false Form 941s and false 2019 IRS Schedule Cs (Form 1040) in six Paycheck Protection Program (PPP) loan applications. They further stated that they had knowingly certified all the information in the applications and supporting documents were true and correct when they knew the information to be incorrect. The couple admitted to transferring the $742,926.50 in funds they received through various bank accounts and using the funds for personal expenses.
Mr. Sullivan also stated in his plea agreement that he had represented on applications that “Oklahoma Paving” had an average monthly payroll of $50,546.41 on April 8, 2020, and “USA-1 Construction” had an average monthly payroll of $143,483.00 on April 30, 2020.
Similarly, Mrs. Sullivan stated that in their PPP loan applications, she falsely represented that “U.S. Central Construction” had an average monthly payroll of $26,053.00 on April 28, 2020; “Oklahoma Energy” had an average monthly payroll of $279,101.66 on May 4, 2020; “Oklahoma Paving” had an average monthly payroll of $279,101.66 on May 4, 2020; and “Oklahoma Energy” had an average monthly payroll of $251,458.00 on May 11, 2020.
The indictment further alleges that the Sullivans misrepresented the number of businesses they owned and operated, the duration of operation for each business, the number and names of employees, the monthly payroll for each business, and the way in which the loan proceeds would be used.
Second, on Oct. 24, 2023, U.S. District Judge Paul M. Arias-Marxuach sentenced Ladawn Shazzelle Pinkney to 6 months in federal prison followed by 6 months of home confinement and 2 years of supervised release for her participation in a Paycheck Protect Program loan fraud scheme. Judge Arias-Marxuach further ordered Pinkney to repay the U.S. Small Business Administration $41,828.46 in restitution.
As a part of her plea agreement entered in July of 2022, Pinkney plead guilty to wire fraud. She admitted that between March 20, 2021, and April 21, 2021, she made two fraudulent loan applications on behalf of a business that did not exist before the COVID-19 pandemic. According to the indictment in the case, Pinkney also received forgiveness for 100 percent of the PPP loans. In her applications for loan forgiveness, Pinkney falsely stated that she used the loan proceeds for payroll and other eligible uses of PPP loan proceeds.
“All three of these individuals repeatedly lied to banks to obtain government funds intended to retain employees at legitimate businesses during the height of the COVID-19 pandemic,” said U.S. Attorney Clint Johnson. “My office will continue to hold fraudsters accountable for misusing federal emergency assistance.”
“These sentencings send a clear warning that you will be brought to justice if you defraud the federal government of pandemic relief funds,” said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office in this endeavor to hold fraudsters accountable for their crimes.”
“Conspiring to fraudulently obtain federal funds that are meant to provide assistance to nation’s small businesses is unacceptable,” said SBA OIG’s Central Region Special Agent-in-Charge Brady Ipock. “These sentences demonstrate that those responsible will be held accountable. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
The Small Business Administration Office of Inspector General, Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; U.S. Department of Treasury Inspector General for Tax Administration; and FBI conducted the investigation. Assistant U.S. Attorneys Cymetra M. Williams and Matthew Feeley prosecuted these cases.
To learn more about the Justice Department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
St. Louis Man Sentenced to 57 Months in Prison for Aiding $666,656 in Pandemic FraudRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Tuesday sentenced a man who helped at least 20 people file fraudulent pandemic loan applications that reaped $666,656 to a prison term of 57 months and ordered him to repay the money.
Jacob Eldridge, 45, of St. Louis, solicited at least 20 friends and acquaintances to file fraudulent applications for Paycheck Protection Program loans from at least Jan. 1, 2021 to Jan. 13, 2022. Eldridge often drafted and submitted fraudulent applications on behalf of those people. On at least 10 applications, Eldridge included entirely fictitious or substantially inflated gross annual income figures to max out the loans. He often also submitted bogus IRS forms on behalf of the businesses.
In exchange for his help, many of the applicants paid Eldridge at least ten percent of the loan proceeds, totaling about $50,000.
The loans were intended to help struggling business owners and their employees during the COVID-19 pandemic.
In court, Assistant U.S. Attorney Derek Wiseman said Eldridge used the “darkest days” of the pandemic, when Americans were suffering, “to line his pockets.”
Judge Ross echoed that, tell Eldridge, “We were in a desperate situation… and you took advantage of it.”
Eldridge pleaded guilty in May to one felony count of wire fraud.
The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman prosecuted the case.
Sex Offender Pleads Guilty to Child Exploitation ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SHELDON THOMSON, 35, last residing in Norwich, waived her right to be indicted and pleaded guilty today in New Haven federal court to possession of child pornography.
According to court documents and statements made in court, in 2007, Thomson, who now identifies as female, was convicted in state court of sexual assault in the first degree, involving sexual intercourse with a person under the age of 13, and of risk of injury to a child. She was released from prison in November 2015 and began serving a term of probation. In May 2022, Thomson’s state probation officer seized multiple cellphones, a tablet, and a storage card from Thomson, her vehicle, and her residence. Analysis of the seized devices revealed more than 100 images and videos depicting the sexual abuse of children, including prepubescent children.
Sentencing is scheduled for January 23, 2024, at which time Thomson faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of 20 years. The penalties in this matter are enhanced based on Thomson’s prior convictions for sexual assault in the first degree and risk of injury to a minor.
This matter has been investigated by Homeland Security Investigations (HSI) with the assistance of the State of Connecticut Office of Adult Probation. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Second Wiregrass Region Defendant Sentenced for Wire Fraud and Identity TheftRead the Press Release
Montgomery, Alabama – Today, Acting United States Attorney Jonathan S. Ross announced that a federal judge sentenced 26-year-old Jalen Kendel Whaley, a resident of Slocomb, Alabama, to 61 months in prison for his role in an identity theft scheme.
According to his plea agreement and other court records, in 2020, Whaley and co-defendant Courtney Jamal Byrd, 29, from Headland, Alabama, operated a scheme through which they obtained and then used stolen identifying information, identification documents, and credit or debit cards. Whaley and Byrd transferred the stolen information physically and by digital means, including social media. They then used the identity information to make fraudulent financial transactions.
Previously, Whaley and Byrd pleaded guilty to wire fraud and aggravated identity theft in federal court. On October 3, 2023, a judge sentenced Byrd to 51 months in prison. Whaley’s sentencing occurred on October 25, 2023.
The FBI and Dothan Police Department investigated this case, with Assistant United States Attorney J. Patrick Lamb prosecuting.
Schenectady Man Sentenced to 120 Months for Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Jeffrey C. Civitello, Sr., age 52, of Schenectady, New York, was sentenced today to 120 months in prison for conspiring to traffic about 15 kilograms of cocaine in March and April 2021.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
Civitello Sr. and his son Jeffrey C. Civitello Jr., both of Schenectady, and Richard D. Sinde, of Fort Lee, New Jersey, were convicted on all counts following an 8-day trial in April 2023.
United States Attorney Carla Freedman stated: “Today’s sentencing will keep Schenectady safe from someone who worked with his own son and experienced drug traffickers from the New York City area to transport large amounts of cocaine to Schenectady. I commend the DEA and its task force members for bringing this sophisticated drug dealer to justice.”
DEA Special Agent in Charge Frank Tarentino stated: “Jeffrey Civitello Sr. and his five-man conspiracy used a sophisticated trafficking ring to push cocaine throughout the streets of Schenectady. This sentencing is a prime example of how the proximity to New York City helps fuel drug trafficking organizations throughout the state and the northeast. New York City is the finance capital of the world to include drug cartels using it as a transit hub for poison. I applaud our law enforcement partners for their steadfast efforts to bring Civitello Sr. and his co-conspirators to justice.”
The trial evidence demonstrated a conspiracy between five men: the three defendants on trial, as well as Christopher J. Kelly, of Brooklyn, New York, and Robert J. Ingrao, of Lodi, New Jersey.
As part of the conspiracy, Kelly delivered 3 kilograms of cocaine to Civitello Sr. in Schenectady on March 29, and Kelly and Sinde an additional 3 kilograms to Civitello Sr. on March 31. Also on March 31, the Civitellos ordered more cocaine and suggested that Kelly use a 2018 Jeep Grand Cherokee owned by Civitello Jr., which contained, in its trunk, a sophisticated, hidden compartment, also known as a “trap.” Unbeknownst to the conspirators, the DEA had placed a court-authorized tracker on the Jeep several months prior, as part of an investigation of Civitello Jr.
Sinde then drove the Jeep from Schenectady to Fort Lee, and the following evening met Kelly in Breezy Point, New York, on the Rockaway Peninsula, where Kelly and Sinde loaded up the Jeep’s hidden compartment with 9 kilograms of cocaine to be delivered the following day to the Civitellos in Schenectady.
The following day, on April 2, 2021, Ingrao went to Sinde’s house and got into the blue Jeep, driving it north on Interstate 87. A New York State Police Trooper, at the DEA’s request, conducted a stop on Ingrao in Greene County. The Trooper then located 9 kilograms of cocaine in the Jeep’s hidden compartment.
As part of the conspiracy, the Civitellos were arranging for a “trap” to be installed in another Jeep used by Sinde, so that Sinde could continue to traffic drugs to the Civitellos after Kelly went to state prison for a prior cocaine case; they abandoned that plan following the seizure of 9 kilograms of cocaine from Civitello Jr.’s Jeep on April 2.
United States District Judge Mae A. D’Agostino also ordered Civitello Sr. to serve a 5-year term of supervised release and to forfeit $240,000. In 1999, Civitello Sr. was convicted in federal court of conspiring to distribute cocaine and money laundering, and received a 72-month term of imprisonment.
Civitello Jr. is scheduled to be sentenced on December 12, and Sinde is scheduled for sentencing on December 19.
On July 28, 2023, Judge D’Agostino sentenced Ingrao to 37 months in prison, with 3 years of supervision to follow. On August 21, she sentenced Kelly to 41 months in prison, to be followed by a 4-year term of supervised release, and to pay a $25,000 fine.
This case was investigated by the DEA’s Capital District Drug Enforcement Task Force, which includes DEA Special Agents and investigators from state and local police agencies, including the Saratoga Springs Police Department, the Saratoga County Sheriff’s Office, the Washington County Sheriff’s Office, the Columbia County Sheriff’s Office, and the New York State Police.
Assistant U.S. Attorneys Michael Barnett and Dustin C. Segovia are prosecuting this case.
Schenectady Man Pleads Guilty to Marijuana and Firearms OffensesRead the Press Release
ALBANY, NEW YORK – Jeffrey C. Civitello Jr., age 24, of Schenectady, New York, pled guilty today to conspiring to traffic more than 100 kilograms of marijuana, and to possessing two firearms in furtherance of a drug trafficking crime.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
Civitello Jr. admitted that from 2019 to 2021, he worked with others to acquire and sell more than 100 kilograms of marijuana.
On October 21, 2021, the DEA executed a federal search warrant on Civitello’s penthouse apartment residence in Schenectady. Investigators located approximately 75 pounds of marijuana, mostly packaged in 1-pound bags, which Civitello Jr. intended to sell. Additionally, they found $407,545 in cash and a 14-karat Miami Cuban chain, all of which were proceeds of drug trafficking.
In Civitello Jr.’s bedroom, investigators located a loaded Taurus Judge Public Defender revolver and a Smith and Wesson M&P 15-22 rifle loaded with a high-capacity magazine containing numerous .22 caliber rounds, including a round in the chamber. In pleading guilty, Civitello Jr. admitted that he possessed these firearms to protect himself in the event that someone attempted to enter his apartment and steal his marijuana or his drug proceeds.
Sentencing is scheduled for March 5, 2024 before United States District Judge Mae A. D’Agostino. The parties have jointly recommended to Judge D’Agostino that Civitello Jr. receive a 10-year term of imprisonment, with half of the term running consecutive to the term of imprisonment to be imposed in a separate cocaine case in which Civitello Jr. faces at least 10 years in prison after being convicted at trial.
Civitello Jr. has already forfeited the $407,545 in cash found in his safe, and has also agreed to forfeit the firearms, ammunition and the Miami Cuban chain, and to entry of a $250,000 money judgment against him.
This case was investigated by the DEA’s Capital District Drug Enforcement Task Force, which includes DEA Special Agents and investigators from state and local police agencies, including the Saratoga Springs Police Department, the Saratoga County Sheriff’s Office, the Washington County Sheriff’s Office, the Columbia County Sheriff’s Office, and the New York State Police. Assistant U.S. Attorney Michael Barnett is prosecuting this case.
San Antonio Couple Sentenced for Claiming Deceased Mother’s Federal BenefitsRead the Press Release
SAN ANTONIO – A San Antonio couple was sentenced in federal court today to five years probation and ordered to pay $218,730.60 in restitution for theft of government funds.
According to court documents, Tracy Stephanie Grubbs, 59, failed to report her mother’s death to the Social Security Administration and the Department of Veterans Affairs. From January 2011 to December 2018, Grubbs received and negotiated SSA and VA benefit payments intended for her deceased mother. Grubbs would write checks to her husband Gary Lewis Grubbs, 70, who would negotiate the check and use the funds for his own benefit. Both defendants received the same penalty.
“Long term fraud deprives government agencies like the Social Security Administration and the VA of valuable resources,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My office, along with our law enforcement partners, will continuously pursue these cases to guard vital resources for Americans in need.”
“This sentence holds Ms. Grubbs accountable for deliberately using her deceased mother’s Social Security benefits for years until SSA OIG uncovered a death certificate for her mother; theft of government funds is a federal crime, which we will always aggressively pursue,” said Inspector General Gail S. Ennis for SSA. “I want to thank the VA OIG for its efforts in this investigation and the U.S. Attorney’s Office for prosecuting this case.”
“This sentence sends a clear message that those who would defraud VA programs intended for deserving veterans and their families will be held accountable,” said Special Agent in Charge Kris Raper for the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “The VA OIG is grateful to the U.S. Attorney’s Office and our law enforcement partners for their efforts to achieve justice in this case.”
The SSA OIG and VA OIG investigated the case.
Assistant U.S. Attorney Tiffany Miller prosecuted the case.
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Sacramento County Men Indicted for Money Laundering ConspiracyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment last week against brothers Denis Gutsu, 31, of Antelope, and Maxim Gutsu, 26, of Rancho Cordova, charging them with conspiracy to commit money laundering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between December 2017 and March 2019, Denis Gutsu and Maxim Gutsu bought gift cards for a national retailer from persons who had obtained the gift cards using stolen credit card numbers. The Gutsu brothers bought these gift cards at a significant discount and then, usually within a day, sold the gift cards to an online gift card exchange. The brothers agreed with the exchange to sell these gift cards at a discount. In return, the online exchange passed on the discount to buyers who would quickly spend the gift cards. This sequence allowed the fraudulently obtained gift cards to be spent before the national retailer could void them due to fraud.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.
If convicted, Denis Gutsu and Maxim Gutsu each face a maximum statutory penalty of 20 years in prison and a fine of $500,000 or twice the value of the property involved in the money laundering. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Repeat Sex Offender Pleads Guilty, Sentenced to 27.5 Years in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that repeat sex offender Justin Lee Sloothaak, of Holland, Michigan, age 32, was sentenced to 27 years and 6 months in federal prison following Sloothaak’s guilty plea to sexually exploiting a child.
“The sexual exploitation of children is inexcusable and intolerable,” said U.S. Attorney Totten. “Sexual predators who commit heinous crimes against children inflict lifelong damage in the lives of their young victims. My office is committed to working with law enforcement partners to ensure that sex offenders who assault our children are held fully accountable.”
Investigators from the Ottawa County Sheriff’s Office and the Federal Bureau of Investigation uncovered evidence that Sloothaak sexually assaulted a child from West Michigan in 2022. Sloothaak filmed the assault using his smartphone and included the video in his collection of other pornographic videos featuring children. At the time Sloothaak committed the offense, he was on parole following his 2015 sexual assault of another child.
While explaining the reasons for Sloothaak’s lengthy sentence, United States District Judge Jane M. Beckering remarked on the seriousness of Sloothaak’s crime, observing, “This is, absent murder, probably the most traumatizing thing you can do to a human being, especially a minor.”
“The FBI is deeply committed to protecting the most vulnerable members of our society, particularly our children, and bringing predators like the defendant to justice,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The sentence in this case reflects the gravity of the crimes committed, which are particularly distressing given the defendant’s repeated attempts to harm and exploit minors. I want to express my gratitude to the dedicated law enforcement partners of the West Michigan Based Child Exploitation Task Force (WEBCHEX) for their invaluable assistance in securing some measure of justice for the victim.”
This case arose from Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/psc.
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Rancho Cordova Man Pleads Guilty to Drug Importation and Money Laundering OffensesRead the Press Release
SACRAMENTO, Calif. —Adan Navarro, 29, of Rancho Cordova, pleaded guilty today to conspiracy to import heroin, methamphetamine, and fentanyl pills, conspiracy to distribute and possess with intent to distribute heroin, methamphetamine, and fentanyl pills, and conspiracy to launder money to Mexico, United States Attorney Phillip A. Talbert announced.
According to court documents, on June 2, 2020, Navarro coordinated and received a $20,000 cash payment on behalf of a Mexico-based drug trafficker in order to pay down a multi-kilogram heroin debt and to facilitate future larger shipments of heroin. On July 24, 2020, U.S. border agents seized a drug load that Navarro partially owned and coordinated. The load was seized immediately after it crossed from Mexico into the United States and contained approximately 21 pounds of pure methamphetamine, 2 kilograms of heroin, and 977 fentanyl-laced counterfeit prescription pills. Following this seizure, Navarro and an associate arranged to send additional money to a Mexico-based source of supply to coordinate a new shipment of drugs.
This case was the product of an investigation by Homeland Security Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Tri-County Drug Enforcement Team (TRIDENT), with assistance from Customs and Border Protection, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Rancho Cordova Police Department, the Citrus Heights Police Department, and the El Dorado County Sheriff’s Office. Assistant United States Attorney David W. Spencer is prosecuting the case.
Co-defendant Lionel Chavez pled guilty on March 21, 2023, and is scheduled to be sentenced on Dec. 12, 2023.
Navarro is scheduled to be sentenced by Judge Dale A. Drozd on March 19, 2024. Navarro faces a maximum statutory penalty of life in prison and a $10,000,000 fine on each of three drug trafficking counts, and a maximum statutory penalty of 20 years in prison and a $500,000 fine for conspiracy to launder money. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This prosecution is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. The Sacramento Strike Force is a co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Sacramento Strike Force is to identify, investigate, disrupt, and dismantle the most significant drug trafficking organizations (DTOs) and transnational criminal organizations (TCOs) shipping narcotics, firearms, and money through the Eastern District of California, thereby reducing the flow of these criminal resources in California and the rest of the United States. The Sacramento Strike Force leads intelligence-driven investigations targeting the leadership and support elements of these DTOs and TCOs operating within the Eastern District of California, regardless of their geographic base of operations.
Quincy Man Arrested for Hiding over $10 Million in Corporate IncomeRead the Press Release
BOSTON – A Quincy man was arrested yesterday in connection with his alleged involvement in filing false tax returns on behalf of his company that hid over $10 million in corporate income.
Su Nguyen, 60, was charged with aiding and assisting the filing of false tax returns. Nguyen was released on conditions following an initial appearance in federal court in Boston yesterday afternoon before U.S. District Court Magistrate Judge M. Page Kelley.
According to the charging documents, between 2016 and 2020, Nguyen was the owner and operator of General Employment Services (GES), a temporary employment agency operating in Massachusetts. Clients paid GES by check for the work performed by GES employees. Nguyen deposited a small number of client checks in a bank account that Nguyen used for GES business and reported that income to the IRS. However, Nguyen allegedly cashed the majority of client checks at a check casher located in Worcester and used that cash on himself and to pay some employees’ wages. It is alleged that in total, Nguyen cashed over $10 million in client checks and did not report that income or the wages paid in cash to the IRS. By doing so, Nguyen and GES failed to pay over $2 million in taxes.
Each count of aiding and assisting the filing of false tax returns provides for a sentence of up to three years in prison, up to one year 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; Harry T. Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud 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.
Phoenix Man Sentenced to 37 Months for Selling Machine Gun to Undercover AgentRead the Press Release
PHOENIX, Ariz. – Carlos Negrete Farias, 27, of Phoenix, was sentenced on October 2, 2023, by United States District Judge Douglas L. Rayes to 37 months in prison, followed by three years supervised release. Farias pleaded guilty on February 8, 2023, to Possession of a Machine Gun.
On January 31, 2022, Farias agreed to provide an Undercover Agent (UC) a “fun AR” and $3,000.00 in exchange for a .50 caliber rifle. Subsequently, Farias sent the UC a video of an unknown individual shooting a fully automatic AR-15 style rifle.
Farias was arrested on February 8, 2022, during an exchange with the UC. At the time of his arrest, Farias was found with a machine gun conversion device in his pocket, knowing that it was a part designed and intended for use in converting a semi-automatic weapon into a machinegun.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-00149-PHX-DLR
RELEASE NUMBER: 2023-167_Farias# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Philadelphia Man Sentenced to 121 Months in Prison for Drug Trafficking OffenseRead the Press Release
According to U.S. Attorney Gerard M. Karam, Speedwell was part of a large-scale drug trafficking operation moving quantities of methamphetamine from Philadelphia to Altoona, Pennsylvania. Law enforcement conducted a coordinated traffic stop on October 7, 2019, in York County, in which Speedwell was a passenger of the vehicle and found in possession of more than 500 grams of methamphetamine.
The matter was investigated by the Pennsylvania State Police, the Pennsylvania Office of Attorney General, and the Drug Enforcement Administration. Assistant U.S. Attorney Scott R. Ford prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Perry County Man Sentenced to 121 Months’ Imprisonment for Receiving Child PornographyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 30, 2023, Todd Franklin Stydinger, age 42, of Perry County, Pennsylvania, was sentenced by United States District Court Judge Christopher C. Conner to 121 months’ imprisonment for receiving child pornography.
According to United States Attorney Gerard M. Karam, Stydinger previously pleaded guilty to receiving images and videos of child pornography. A search warrant was executed on Stydinger’s residence, and 13 electronic devices were seized. It was found that Stydinger downloaded 198 images and 73 videos depicting child pornography using multiple platforms.
Judge Conner also ordered Stydinger to serve 15 years on supervised release after the conclusion of his prison sentence and ordered Stydinger to pay approximately $35,000 in restitution and assessments.
The matter was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney Christian T. Haugsby prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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Peoria, Illinois, Man Sentenced to Three Years of Probation for Paycheck Protection Program FraudRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Andre K. Johnson, 25, was sentenced on October 30, 2023, to three years of probation for making false statements related to the federal Paycheck Protection Program (PPP). United States District Judge James E. Shadid also ordered Johnson to pay restitution in the amount of $30,586.05 and to serve six months of home detention.
The PPP provided federal funds to small businesses that were directly affected by the COVID-19 pandemic to pay up to eight weeks of payroll costs, rent, utilities and mortgage interest. The program was implemented by the Small Business Administration (“SBA”) and administered by third-party lenders. The PPP was enacted via the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, an economic bill that passed in March 2020 in response to the economic fallout caused by the pandemic.
Johnson was indicted in March 2023 and pleaded guilty in June 2023 to one count of making a false statement to obtain a PPP loan. From May 2020 to September 2021, Johnson fraudulently obtained PPP funds to which he was not entitled by submitting a false PPP application, as well as a fraudulent PPP loan forgiveness application. Johnson claimed to be a self-employed individual who was the sole proprietor of an alleged jewelry and watch wholesale store with a taxable gross income of $100,000 on his loan application. He was held responsible for losses to the SBA of $23,410.05 and Harvest Small Business Finance LLC, in the amount of $7,176.00.
In addition to the fraudulent PPP loan, Johnson fraudulently tried to obtain over $26,000 in unemployment benefits from the states of Illinois, Pennsylvania, Indiana, and California.
The statutory penalties for making a false statement are up to five years imprisonment, a possible $250,000 fine, and up to three years of supervised release.
The Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation, Springfield Field Office, investigated the case. Criminal Chief Darilynn J. Knauss represented the government in the prosecution.
Pelham Manor Man Charged with Health Care Fraud and Kickback SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced the unsealing of a five-count Indictment charging MANISHKUMAR PATEL in connection with a health care fraud and kickback scheme involving the sale of fraudulent prescriptions. PATEL was arrested this morning in Pelham Manor, New York, and was presented this afternoon before U.S. Magistrate Judge Gary Stein. The case is assigned to U.S. District Judge Schofield.
U.S. Attorney Damian Williams said: “As alleged, Manishkumar Patel ran a scheme to get rich by generating fraudulent prescriptions used to bill Medicare for millions of dollars in unnecessary healthcare expenses. Today’s charges send a message: our Office and our law enforcement partners are dedicated to holding accountable anyone who tries to rip off critical healthcare programs like Medicare.”
HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Certain violations of the Anti-Kickback Statute can result in the inducement of medically unnecessary durable medical equipment, medications, and laboratory tests, which can affect the availability of services for others and drive up the cost of health care for everyone. Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”
As alleged in the Indictment:[1]
Between 2019 and 2022, PATEL and a coconspirator (“CC-1”) fraudulently sold prescriptions and doctors’ orders for durable medical equipment, pharmaceuticals, and laboratory tests (collectively, “scripts”) to durable medical equipment suppliers, pharmacies, and laboratories (collectively, the “Medicare Providers”).
PATEL obtained the scripts from call centers that called Medicare beneficiaries and asked them perfunctory questions designed to justify a script that would be reimbursed by Medicare. PATEL turned the information from those calls into scripts by, variously: (i) arranging cursory telemedicine appointments with the beneficiaries; (ii) a practice called “doctor chasing,” in which the information was sent to a doctor who signed the script without seeing the patient and who was frequently unaware of what they were signing; and (iii) obtaining forged scripts. PATEL then sold the scripts to Medicare Providers, which filled the orders and billed Medicare.
Because the scripts were fraudulently obtained, many beneficiaries rejected the items they were sent by the Medicare Providers, many doctors threatened to report PATEL for fraud, and Medicare frequently refused to pay for the scripts.
The Medicare Providers made payments to PATEL for the scripts in violation of the Anti-Kickback Statue. PATEL and the Medicare Providers entered into sham contracts for generic marketing services at flat rates in an attempt to conceal their illegal kickback scheme.
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PATEL, 44, of Pelham Manor, New York, is charged with (i) conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison; (ii) health care fraud, which carries a maximum sentence of 20 years in prison; (iii) wire fraud, which carries a maximum sentence of 20 years in prison; (iv) conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison; and (v) violation of the Anti-Kickback Statute, which carries a maximum sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of HHS-OIG.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Kevin Mead is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitutes only allegations, and every fact described therein should be treated as an allegation.
Oregon Woman Pleads Guilty to Union EmbezzlementRead the Press Release
BOSTON – An Oregon woman, formerly of Middleborough, pleaded guilty today in federal court in Boston to embezzling nearly $40,000 from a labor union.
Andrea Anderson, 61, pleaded guilty to one count of embezzlement from a labor union. U.S. District Court Judge Patti Saris scheduled sentencing for Feb. 27, 2024. Anderson was charged on Sept. 6, 2023.
From approximately 2013 through July 2022, Anderson worked as a part-time administrative employee of the Brotherhood of Shoe and Allied Craftsman (BSAC), whose union office was located inside the garage of Anderson’s father’s residence in Lakeville. Anderson’s duties included signing checks, secretarial work and paying bills. Additionally, Anderson was a signatory on the union bank account, signed and prepared checks and had a union debit card. During her tenure working for BSAC, Anderson embezzled a total of $39,169 from the union. She repaid BSAC some $8,000 leaving a loss to BSAC of $30,316.
The charge of labor embezzlement provides for a sentence of up to five years in prison, up to two years 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 Jonathan Russo, District Director, U.S. Department of Labor, Office of Labor-Management Standards made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of the Criminal Division is prosecuting the case.
New Orleans Man Pleads Guilty to Hobbs Act Robbery ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on October 27, 2023, COREY LEWIS, a/k/a “Co,” pled guilty to robbery in Counts 1, 2, and 3 of the superseding bill of information pending against him before U.S. District Judge Jane Triche Milazzo.
Count 1 charged LEWIS with conspiring to interfere with commerce through robbery, in violation of Title 18, United States Code, Section 1951. Count 2 charged LEWIS with Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951. Count 3 charged LEWIS with possessing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(i) and 2.
As to Counts 1 and 2, LEWIS faces up to 20 years in prison, a fine of up to $250,000.00, and up to three years of supervised release. As to Count 3, LEWIS faces a mandatory minimum term of five years imprisonment up to life in prison, a fine of up to $250,000.00, and up to five years of supervised release. Count 3 must be served consecutively to any other sentence. LEWIS also faces a $100 mandatory special assessment fee for each count. His sentencing is scheduled for February 21, 2024.
According to public documents, in 2019, the Federal Bureau of Investigation investigated a group for committing various violent crimes and illegal drug trafficking, primarily in New Orleans East and the Ninth Ward section of New Orleans. Thereafter, LEWIS, along with nine others, were indicted, for conspiring to possess firearms, traffic drugs and commit armed robberies of drug dealers. LEWIS’s charges specifically stemmed from his participation in the robbery of a drug dealer’s home on September 25, 2019, in St. Bernard Parish.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, and the St. Bernard Sheriff’s Office. Assistant United States Attorneys Maurice Landrieu of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crime Unit, are in charge of the prosecution.
New Mexico man sentenced to 21 months in prison for cyberstalking Poplar womanRead the Press Release
GREAT FALLS — A New Mexico man who admitted to cyberstalking a Poplar woman for more than two years was sentenced today to 21 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Jicarilla Juan Tiznado, 23, of Dulce, New Mexico, pleaded guilty in June to cyberstalking.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that from about June 2020 through October 2022, Tiznado repeatedly harassed and intimidated the victim, identified as Jane Doe, using his computer, cell phone, email and the Internet. Tiznado called, emailed and messaged Jane Doe hundreds of times, threatening to harm and kill her, kill her brother, harm her friends and relatives, send nude images of her to her teachers or post them to her school’s Facebook account. Tiznado also harassed Jane Doe by calling and emailing schools she attended, attempting to get her into trouble, submitting unsubstantiated complaints about her and her family to state and tribal agencies and calling 911 with a false report about her.
Assistant U.S. Attorneys Wendy A. Johnson and Amanda L. Myers prosecuted the case. The FBI and Fort Peck Law Enforcement conducted the investigation.
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New Jersey Attorney Pleads Guilty to Fraud and Aggravated Identity Theft ChargesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 30, 2023, Scott Marinelli, age 52, of Mountainside, New Jersey, pleaded guilty to six counts of wire fraud and six counts of aggravated identity theft.
According to United States Attorney Gerard M. Karam, Marinelli admitted that between November 2017 and April 9, 2018, he participated in a scheme to defraud victims of proceeds from the sales of six properties. Marinelli, a suspended attorney from New Jersey, acted as a real estate broker and title agent and directed a mortgage company to wire loan funds to him for the sale of the properties. Marinelli further admitted that instead of properly dispersing the funds from the mortgage company, he used the money that he received for his own personal benefit. Marinelli further admitted that as part of his scheme, he stole the identities of the property sellers, a notary public, a title agent, and an accountant. Marinelli currently faces additional, unrelated charges in federal court in Washington, D.C., and in state court in New Jersey.
The case was investigated by the Federal Bureau of Investigation and the Monroe County District Attorney’s Office. Assistant U.S. Attorneys Jenny P. Roberts and Sean Camoni prosecuted the case.
Marinelli faces a maximum total period of incarceration of 120 years for the wire fraud charges and must serve at least an additional two and up to twelve years for the aggravated identity theft charges. A sentence following a finding of guilt is imposed by the
Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Nevada Man Charged for Using Art Appraisal to Conceal FraudRead the Press Release
NEW ORLEANS, LOUISIANA - The United States Attorney’s Office announced today that Nevada resident, MICHAEL JON SCHOFIELD, age 76, has been charged on October 30, 2023 with misprision of a felony.
The bill of information alleges that SCHOFIELD concealed wire fraud, by emailing an art appraisal that misrepresented SCHOFIELD’s honest assessment of the appraised art’s value.
Misprision is punishable by up to three years imprisonment followed by up to one year of supervised release, a fine of up to $250,000, and a $100 mandatory special assessment fee.
The United States Attorney’s Office reiterated that the bill of information is merely a charge and that the defendant’s guilt must be proven beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Chandra Menon of the Public Integrity Unit, is in charge of the prosecution.
Murder in death of child sends Wolf Point woman to prison for more than 16 yearsRead the Press Release
GREAT FALLS — A Wolf Point woman who admitted to a murder charge in the death of child on the Fort Peck Indian Reservation was sentenced on Oct. 30 to 16 years and three months in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Heather Dawn Smith, aka Heather Dawn Yellow Owl, 33, pleaded guilty in May to second degree murder.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that on Nov. 8, 2020 in Wolf Point, Smith beat the victim, a two-year-old child identified as Jane Doe. When Smith checked on the victim on Nov. 12, the child was unresponsive. The child was transported to the hospital in Wolf Point, where she was pronounced dead. The cause of death was multiple blunt force injuries.
Assistant U.S. Attorneys Lori Harper Suek and Ryan G. Weldon prosecuted the case. The FBI, Fort Peck Tribes Criminal Investigation and Wolf Point Police Department conducted the investigation.
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Massachusetts Man Sentenced for Straw Purchase ConspiracyRead the Press Release
PORTLAND, Maine: A Brockton, Massachusetts man was sentenced today in U.S. District Court in Portland for conspiring to violate federal firearms laws.
U.S District Judge Nancy Torresen sentenced Antoine Montrond, 23, to a year plus one day in prison followed by three years of supervised release. Montrond pleaded guilty on April 26, 2023.
According to court records, in January 2020, Montrond and a co-conspirator used a straw purchaser to buy two firearms from a store in Kittery. The purchaser falsely indicated they were the true purchaser of the firearms when in fact they were buying them for Montrond and his co-conspirator. In May 2020, police recovered one of the firearms, a Glock Model 23 .40 caliber pistol, from Montrond during a traffic stop. In total, Montrond’s co-conspirators succeeded in illegally straw purchasing seven firearms; they were previously sentenced by Judge Torresen for their respective roles in the scheme.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
STRAW PURCHASING: A straw purchase is an illegal firearm purchase where the actual buyer of the gun, being unable to pass the required federal background check or desiring to not have his or her name associated with the transaction, uses a proxy buyer who can pass the required background check to purchase the firearm for him/her.
Project Safe Neighborhoods: This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. To learn more information about Project Safe Neighborhood, visit www.justice.gov/psn.
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Manchester, New Hampshire Man Pleads Guilty to Interstate Transportation of Stolen CheckRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that yesterday Nicholas Melanson, 41, of Manchester, New Hampshire, pleaded guilty in United States District Court for the District of Vermont to one count of interstate transportation of a stolen check. United States District Judge Christina Reiss accepted Melanson’s plea and scheduled his sentencing hearing for April 2, 2024.
During the plea hearing, Melanson admitted to traveling from New Hampshire, where he lived and worked, to the residence of an elderly woman in Windsor, Vermont on five occasions between May 11 and May 19, 2022. Melanson was directed to transport the elderly woman from her Windsor home to one or more banks to conduct transactions, and to obtain checks from her. Two of these checks were payable to Melanson, each in the amount of $25,000. Melanson deposited these checks into his bank accounts in New Hampshire, though ultimately the payments were stopped and any deposits were reversed. Based on Melanson’s personal interactions with the elderly woman, he made various observations about her cognitive limitations, including that he believed she was not able to make informed decisions about large financial transactions without instruction from someone else. The attempted or completed financial transactions that Melanson facilitated or conducted for the elderly woman totaled at least $392,000, though many of the transactions were ultimately stopped or reversed.
Melanson was arrested in connection with this matter on September 29, 2022. He was released on conditions that day and remains on release pending sentencing. Melanson faces a maximum possible penalty of ten years of imprisonment, three years of supervised release, and fines of up to $250,000. The actual sentence will be determined by Judge Reiss with reference to the Federal Sentencing Guidelines and the United States Code.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the United States Postal Inspection Service, the United States Secret Service, and the Windsor, Vermont Police Department, and he further thanked the Windsor Police Department for its efforts on behalf of the victim in this matter.
Melanson is represented in this matter by Assistant Federal Public Defender Mary Nerino. Assistant United States Attorneys Nicole Cate and Michael Drescher have handled the case for the government.
Since being signed into law, the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA), the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Please visit: http://www.justice.gov/elderjustice/.
KC Man Sentenced for Meth Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute methamphetamine and for illegally possessing a firearm.
Ruben Chigo Paz, 27, was sentenced by U.S. District Judge Greg Kays on Monday, Oct. 30, to 10 years in federal prison without parole.
On July 11, 2022, Paz pleaded guilty to one count of conspiracy to distribute methamphetamine and heroin, and one count of conspiracy to commit money laundering.
Paz admitted that he is responsible for the distribution of more than 1.5 kilograms of methamphetamine during the conspiracy. Paz admitted that he sold a total of 1,314.49 grams of methamphetamine to a law enforcement confidential source from July 13 to Dec. 4, 2018. Paz was arrested at a residence in Kansas City, Mo., in which law enforcement officers found 37 pounds of methamphetamine, one pound of heroin, and a Zenith .45-caliber pistol with a magazine.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Smith. It was investigated by the FBI, the Independence, Mo., Police Department, the Jackson County Drug Task Force, the Kansas City, Mo., Police Department, the Jackson County, Mo., Sheriff’s Department, Homeland Security Investigations, and the U.S. Marshals Service.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
KC Man Pleads Guilty to Gun Trafficking, Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to traffic firearms, including machine guns, and to drug trafficking.
Cody Bonhomme, 30, pleaded guilty before U.S. District Judge Greg Kays to one count of conspiracy to traffic firearms and to one count of conspiracy to distribute cocaine.
By pleading guilty today, Bonhomme admitted that he illegally sold nine firearms, including six that had been converted to machine guns, 20 machine gun conversion devices, and cocaine to a confidential informant and an undercover federal agent on several occasions.
Bonhomme admitted that he participated in the conspiracy to traffic firearms from March 1 to May 31, 2023. Those firearms included four Anderson AM-15 multi-caliber semi-automatic pistols converted to machine guns, a Glock .40-caliber pistol converted to a machine gun, a DPMS multi-caliber converted to a machine gun, an Anderson AM-15 multi-caliber semi-automatic pistol, a Polymer80 9mm pistol, and a Polymer80 pistol with no serial number.
On May 31, 2023, law enforcement officers executed search warrants at Bonhomme’s residence and elsewhere. Officers arrested Bonhomme and others and seized more than 100 firearms (many of which had been converted to machine guns), machine gun conversion devices, high-capacity magazines, 4.5 kilograms of purported marijuana, and other contraband. Bonhomme was in possession of multiple machine guns and approximately 673 grams of suspected cocaine.
Under federal statutes, Bonhomme is subject to a mandatory minimum sentence of five years in federal prison without parole up to a sentence of 65 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Justice Department Issues Guidance on the Americans with Disabilities Act and Employment Services for People with DisabilitiesRead the Press Release
As we commemorate National Disability Employment Awareness Month, the Justice Department announced today that it has issued guidance to explain how the Americans with Disabilities Act (ADA)'s “integration mandate” applies to public employment and day services. The integration mandate requires state and local governments to provide services to people with disabilities in the most integrated setting appropriate.
Integrated employment services can help people with disabilities work in typical jobs where they can interact with non-disabled coworkers, customers and peers. Integrated day services allow people with disabilities to engage in community activities of their choosing — like social, educational, recreational or cultural activities — when they are not working. As the guidance describes, the ADA requires state and local governments to make their employment and day services available in the most integrated setting appropriate to each person’s needs.
Nationally, however, many people with disabilities spend most of their time receiving public services in segregated settings like sheltered workshops and facility-based day programs. Sheltered workshops are segregated facilities that primarily or exclusively employ people with disabilities. In facility-based day programs, people with disabilities participate in non-work activities with other people with disabilities. These settings separate individuals from the community and provide little or no opportunity to spend time with people without disabilities, other than paid staff.
“Simply put, people with disabilities are entitled to work alongside their friends, peers and neighbors without disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Employment is fundamental to contributing to and being fully included in society, This guidance makes clear that the ADA requires that people with disabilities have access to the integrated services they need to contribute, grow and advance in typical workplaces throughout the country.”
The Civil Rights Division has published this guidance to help state and local governments understand their nondiscrimination obligations and people with disabilities understand their rights under the federal law in this area. The guidance provides an overview of the ADA, the integration mandate and the types of employment and day services that are often offered to people with disabilities. It then answers nine questions about how the ADA applies to those service systems. For example, the guidance explains:
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The ADA’s integration mandate applies to public employment and day services.
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The most integrated employment setting under the ADA is the one that lets people with disabilities spend time with non-disabled people as much as possible.
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People with disabilities who receive services in segregated employment or day services settings should receive accurate information about integrated employment options.
The guidance may be found at www.ada.gov/resources/olmstead-employment-qa/. A Federal Register notice discussing the guidance will be forthcoming. To learn more about the ADA, call the toll-free ADA Information Line at 1-800-514-0301 or 1-833-610-1264 (TDD), or access the Justice Department’s ADA website at ada.gov.
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Johnstown Man Sentenced to 42 Months in Prison and 3 Years of Supervised Release for Conspiring to Distribute and Possess Controlled SubstancesRead the Press Release
JOHNSTOWN, Pa. – A former resident of Johnstown, PA, has been sentenced in federal court to a total of 42 months in prison followed by 3 years of supervised release on his conviction of conspiracy to distribute and possess with intent to distribute quantities of controlled substances, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Joseph Thornton, age 33, of Johnstown, Pennsylvania.
According to information presented to the court, from on or about April 2019, to on or about July 2021, Thornton did conspire to distribute and possess with intent to distribute quantities of controlled substances.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Mr. Olshan commended the Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations for the investigation that led to the successful prosecution of Thornton. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Pennsylvania Office of the Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department and other local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Jacksonville Man Sentenced to Federal Prison for Possessing A Short-Barreled RifleRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Jonathan Donte Rogers, Jr. (22, Jacksonville) to 21 months in federal prison for possessing an unregistered short-barreled rifle. Rogers had pleaded guilty on June 1, 2023.
According to court documents, on September 5, 2022, the personal vehicle of an officer from the Jacksonville Sheriff’s Officer (JSO) was burglarized, and his rifle was stolen. The firearm was highly customized to include being a federally regulated short-barreled rifle with the officer’s name engraved on the lower receiver of the rifle. On September 6, 2022, JSO detectives viewed an Instagram video that showed the rifle and depicted Rogers armed with the rifle and filming himself on a phone in the bathroom mirror.
Further investigation led to the execution of search warrant at the residence where Rogers resided. The firearm was found in a gym bag located on Rogers’s bed.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sherriff’s Office. The case was prosecuted by Assistant United States Attorney John Cannizzaro.
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.
Houston felon sentenced to federal prison for firearms violation in Jefferson CountyRead the Press Release
BEAUMONT, Texas– A Houston man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Ashton Jherimiah Robertson, 25, pleaded guilty to possession of a firearm by a prohibited person and was sentenced to 63 months in federal prison by U.S. District Judge Marcia A. Crone on Oct. 31, 2023.
According to information presented in court, on May 7, 2021, Robertson was pulled over in Beaumont for not wearing a seatbelt. During the stop, law enforcement officers discovered Robertson had outstanding warrants from Beaumont and Harris County. Robertson was arrested and the vehicle was searched. During the search, officers discovered a firearm. Further investigation revealed Robertson was a previously convicted felon and prohibited from owning or possessing firearms or ammunition.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Hardin County man sentenced to federal prison for bank robberyRead the Press Release
BEAUMONT, Texas– A Kountze man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Timothy Shane Mitchell, 39, pleaded guilty to bank robbery and was sentenced to 87 months in federal prison by U.S. District Judge Marcia Crone on Oct. 31, 2023.
According to information presented in court, on June 6, 2022, Mitchell robbed the Lumberton branch of the Community Bank of Texas. Mitchell approached a teller’s station at the bank and gave the teller a note demanding money. Mitchell told the teller he had a gun, which he threatened to use if she alerted authorities. The teller gave Mitchell a stack of currency and he left the bank. The teller immediately activated the panic button alerting police to the robbery. Witnesses were able to describe Mitchell’s vehicle, which was apprehended shortly after the robbery. Mitchell was arrested and the $5,860 in currency was recovered at that time.
This case was investigated by the Lumberton Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Gang Leader Sentenced to 30 years, Three Others Sentenced to Federal Prison, for Lexington Fentanyl ConspiracyRead the Press Release
COLUMBIA, S.C. — The leader of a local street gang, Carlos Antonio Grooms, a/k/a “B Lord,” 36, of Columbia, was sentenced to 30 years in federal prison, following a federal drug conspiracy conviction. Three co-conspirators were also sentenced to federal prison for their role in the scheme.
Between 2020 and 2022, Grooms led a drug trafficking organization that was responsible for distributing multiple kilograms of heroin, fentanyl, and methamphetamine in the Lexington and Columbia areas. Grooms sold drugs on video to agents with the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) on numerous occasions, typically through drug users who he used as couriers. Evidence at sentencing indicated that he used as many as 9 others to distribute drugs, that the conspiracy used firearms in connection with drug trafficking, and that Grooms used numerous stash houses in the area to operate this conspiracy. Agents found a kilogram press, scales, night vision goggles, more than $10,000 in U.S. currency, a heat sealer, multiple cell phones, and other tools of the drug trade at Grooms’ house when he was arrested.
At sentencing, the Court found that Grooms continued to coordinate drug distributions while in federal custody over recorded jail phones and e-mail accounts, and that Grooms was the leader of a local criminal street gang.
The Court also found that Grooms threatened and tampered with numerous witnesses, including by telling witnesses to lie to agents or not speak with the police, and Grooms was responsible for at least one witness receiving what amounted to death threats. As a result, the Court enhanced Grooms’ sentence for obstruction and witness tampering.
United States District Judge Mary Geiger Lewis sentenced Grooms to 30 years in federal prison, to be followed by five years of Court-ordered supervision. There is no parole in the federal system.
The Court also sentenced three others for helping Grooms in his drug distribution operation: Christine Elizabeth Horan (age 33, of Pelion, S.C.) was sentenced to 57 months to be followed by three years of Court-ordered supervision, Lucas Channing Austin (age 30, of Gaston, S.C.) was sentenced to 21 months to be followed by three years of Court-ordered supervision, and Emerald Kate Hearon (age 35, of Gaston, S.C.) was sentenced to Time Served (about 10 months) to be followed by two years of Court-ordered supervision. All three were convicted of conspiracy to possess with intent to distribute and to distribute controlled substances, and all three distributed narcotics for Grooms.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the ATF, the Lexington County Sheriff’s Department, and the Richland County Sheriff’s Department. Assistant U.S. Attorney Elliott B. Daniels prosecuted the case.
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Four Men Indicted for Defrauding Global Financial Services Company Based in Menlo Park, California of over Two Million DollarsRead the Press Release
A two-count indictment was unsealed today in federal court in Central Islip charging four men with conspiracy to commit securities fraud and money laundering conspiracy in connection with a scheme to steal millions of dollars from a global financial services company based in Menlo Park, California. The charges arise from a wide-ranging scheme by the defendants to create hundreds of sham brokerage accounts in order to access short-term cash advances which the defendants then stole through a complex options trading scheme. In total, the defendants recruited dozens of individuals to engage in their fraudulent scheme and stole more than $2 million.
Eduardo Hernandez was arrested today in Atlantic City, New Jersey and will be arraigned this afternoon in federal court in Brooklyn before United States Magistrate Judge Lois Bloom. Christopher Flagg and Daquan Lloyd were arrested earlier today on Long Island and will be arraigned this afternoon in federal court in Central Islip before United States District Judge Gary R. Brown. The fourth defendant, Corey Ortiz, remains at large.
Breon Peace, United States Attorney for the Eastern District of New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the arrests and charges.
“The defendants are charged with stealing millions of dollars by creating fraudulent brokerage accounts and engaging in sham trading,” stated United States Attorney Peace. “For years, the defendants deceived others to line their own pockets. Today’s indictment shows that this Office will hold accountable anyone who tries to manipulate the financial system.”
U.S. Attorney Peace thanked the Securities and Exchange Commission for their assistance with the case.
“The defendants allegedly engaged in a sprawling multiyear complex financial fraud scheme, which saw more than 2 million dollars stolen. This type of scam is not only illegal, but weakens the public’s faith in our financial marketplace. The FBI will continue to ensure that anyone attempting to benefit from this type of fraud is punished in the criminal justice system,” said FBI Assistant Director-in-Charge Smith.
As alleged in the indictment, between December 2018 and January 2023, the defendants engaged in a scheme to defraud a global financial services company of millions of dollars of short-term cash advances, called “Instant Deposits.” The Instant Deposits were intended to enable legitimate investors to immediately trade in their brokerage accounts without having to wait for an incoming wire transfer to clear. To gain access to millions of dollars of Instant Deposits, which were typically capped at $5,000 per account, the defendants established a multi-state recruitment network through which the defendants opened hundreds of fraudulent accounts held in the names of straw account holders, or “Losing Accounts.”
Using the Instant Deposits available to the Losing Accounts, the defendants repeatedly bought thinly traded and highly speculative stock options at above-market prices. Selecting these virtually worthless stock options enabled the defendants to match their bids in the Losing Account with offers to sell the same overpriced stock options initiated by other brokerage accounts, or “Winning Accounts,” that were also controlled by the defendants and their conspirators. In effect, the defendants transferred the Instant Deposits from the Losing Accounts to the Winning Accounts by way of fraudulent securities transactions.
Meanwhile, the incoming wire transfers supposed to cover the Instant Deposits in the Losing Accounts had purposely been initiated by the defendants from bank accounts that had little or no balance. These wire transfers, therefore, failed to clear, but not before the defendants drained the Instant Deposits, leaving the accounts with negative balances and worthless options. The defendants then laundered the stolen funds through multiple electronic banking platforms.
In total, the defendants recruited dozens of individuals to engage in their fraudulent scheme and stole more than $2 million.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 25 years in prison.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
The government’s case is being handled by the Business and Securities Fraud Section. Assistant United States Attorneys Jonathan P. Lax and Sara K. Winik are in charge of the prosecution with the assistance of Paralegal Specialist Jake Menz.
The Defendants:
EDUARDO HERNANDEZ (also known as “Ghost”)
Age: 33
Lindenhurst, New YorkCHRISTOPHER FLAGG (also known as “Venus”)
Age: 28
Copiague, New YorkDAQUAN LLOYD (also known as “Payday”)
Age: 29
Copiague, New YorkCOREY ORTIZ (also known as “Jefe”)
Age: 29
Greensboro, North CarolinaE.D.N.Y. Docket No. 23-CR-428 (GRB)
Four Accused of Fraudulently Registering Vehicles in MissouriRead the Press Release
ST. LOUIS –Four people have been indicted in U.S. District Court in St. Louis and accused of fraudulently registering vehicles in Missouri, including three former employees of driver license offices.
Gary Wilds, 46, Megan Leone, 40, Michelle Boyer, 51, and Ashlyn Graeff, 38, were each indicted by a grand jury October 25 with one count of conspiracy to commit mail and wire fraud. Wilds was also indicted on four counts of wire fraud, four counts of aggravated identity theft and six counts of making a false statement. Leone also faces four counts of wire fraud and two counts of making a false statement. Boyer faces five counts of wire fraud and Graeff faces five counts of wire fraud and four counts of making a false statement.
Wilds was arrested and appeared in court Tuesday, where he pleaded not guilty to the charges.
Boyer, Graeff and Leone worked for contract license offices, the indictment says. The indictment accuses Wilds of paying them up to $100 for each vehicle that they fraudulently registered via their access to Missouri Department of Revenue computers. Wilds provided his customers’ names, license plate numbers, VIN number and motor vehicle title number and the employees falsely represented in the DOR database that they had verified emissions inspections, safety inspections, the payment of personal property taxes and proof of insurance, the indictment says. Wilds is also accused of using forged and fraudulent forms seeking an exemption for Missouri businesses seeking to register trucks weighing more than 24,000 pounds or trailers. Wilds would keep the sales taxes that vehicle owners had paid him, the indictment says, as well as a nominal fee that he charged owners for handling the paperwork.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The conspiracy and wire fraud charges each carry a potential penalty of up to 20 years in prison, a $250,000 fine, or both prison and a fine. The charge of making a false statement carries a potential penalty of up to five years in prison, a $250,000 fine, or both. Each aggravated identity theft charge is punishable by two years in prison, consecutive to any other charge.
The case was investigated by the Missouri Department of Revenue and the FBI. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Fort Wayne Man Sentenced to 63 Months in PrisonRead the Press Release
FORT WAYNE–Lydell E. Trainor Jr., 30 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady upon his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Trainor was sentenced to 63 months in prison followed by 2 years of supervised release.
According to documents in the case, on or about April 29, 2022, Trainor traveled to his in-laws’ residence in the early morning hours while possessing a loaded 9mm firearm. During an argument, Trainor pointed the firearm which he later hid underneath a vehicle. Based on his prior felony convictions for battery and possession of cocaine, Trainor was prohibited from possessing the firearm in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Justin Sheridan and former Assistant United States Attorney Brent Ecenbarger.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Former President of Asphalt Paving Company Pleads Guilty to Bid RiggingRead the Press Release
The former president of a Michigan-area asphalt paving company pleaded guilty yesterday for his role in a conspiracy to rig bids for asphalt paving services contracts in Michigan.
According to court documents filed in the U.S. District Court in Detroit, Daniel Israel, along with other individuals working for the company where Israel was formerly the president, conspired with another asphalt paving company and its employees to rig bids in each other’s favor. The conspiracy began at least as early as March 2013 and continued until at least as late as November 2018. Under the terms of the conspiracy, the co-conspirators coordinated each other’s bid prices so that the agreed-upon losing company would submit intentionally non-competitive bids. These bids gave customers the false impression of competition when, in fact, the co-conspirators already had decided among themselves who would win the contracts.
Israel pleaded guilty to one count of violating Section One of the Sherman Act. The maximum penalty for individuals who violate Section One of the Sherman Act is 10 years in prison and a $1 million criminal fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Israel is the third individual to plead guilty as a result of an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the asphalt paving services industry being conducted by the Antitrust Division’s Chicago Office and the Offices of Inspectors General for the Department of Transportation and U.S. Postal Service. Over a two week span in August, a company and two of its executives also pleaded guilty in this investigation.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations.
Former Police Chief Convicted for Cyberstalking and Threats in Multi-Victim Sextortion SchemeRead the Press Release
COLUMBIA, S.C. — William Bruce Parker, a/k/a “Parker,” a/k/a “Willie Boner,” a/k/a “John Wayne,” of West Columbia, pled guilty of Cyberstalking Resulting in Serious Bodily Injury and Communicating Threats with the Intent to Extort victims for the production of pornography and coerced sex acts.
At the plea hearing, Parker, the 66-year-old former Chief of Police of the Town of Pine Ridge, SC, a retired 35-year veteran of law enforcement in South Carolina, who was a state constable at the time of the offenses, admitted to sending a series of threatening emails, texts, and voice messages in 2021 and 2022 from spoofed accounts and phone numbers to numerous female victims. His messages demanded his victims produce and send pornographic videos and photographs or he would harm the victims and their families, including physical and sexual violence directed at his victims and their spouses, children, and grandchildren, if they did not comply with his demands. In his threats, he named particular communities in which his victims engaged, he threatened specific family members, and he promised harm if they went to the police.
After receiving the demands, victims reached out to Parker for advice and help given his law enforcement background. Parker lied to the victims about working with law enforcement agencies on investigating the threats, and he instructed the victims to produce and send the pornography. He also falsely promised victims that by responding, police would be able to track the emails and identify the extortionist. Once Parker had the coerced pornography, he then threatened to leak the same to obtain more. His threats culminated with demands that the victims engage in sexual acts with Parker, record the conduct, and send to the extortionist accounts. Parker admitted to engaging or attempting to engage in nonconsensual sexual acts with these victims.
At the bond hearing, the Government indicated there is evidence that there are additional victims beyond the two listed in the charging document. Individuals with information related to this case are encouraged to contact FBI Columbia at (803) 551-4200.
Parker faces up to 20 years in federal prison. Parker was ordered detained pending sentencing by United States Magistrate Judge Shiva V. Hodges. United States District Judge Cameron McGowan Currie accepted the guilty plea and will sentence Parker on Jan. 31, 2024 at the Matthew J. Perry Federal Courthouse in Columbia.
The case was investigated by the Federal Bureau of Investigation and Lexington County Sheriff’s Department. Assistant U.S. Attorneys Elliott B. Daniels and Elle E. Klein are prosecuting the case.
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Former North Dakota State Senator Indicted for Child Sex Tourism and Child PornographyRead the Press Release
Fargo - A federal grand jury returned an indictment against Raymon Everett Holmberg, a/k/a Sean Evans, for Child Sex Tourism and Receipt of Child Pornography. Holmberg, age 79, from Grand Forks, ND, a former North Dakota State Senator, was indicted on October 26, 2023, in the U.S. District Court for the District of North Dakota and appeared for an initial appearance and arraignment today.
The Indictment alleges that beginning in June 2011 through November 2016, Holmberg repeatedly traveled from North Dakota to Prague, Czech Republic, for the purpose of engaging in commercial sex acts (Child Sex Tourism) with a person under the age of 18 years. It also alleges that on November 24, 2012, and continuing until March 4, 2013, Holmberg received and attempted to receive child pornography depicting a minor engaging in sexually explicit conduct.
Holmberg has entered a not guilty plea to matters alleged in the Indictment and an initial trial date has been scheduled for December 5, 2023.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The charges announced today are the result of a federal investigation conducted by Homeland Security Investigation and the Internet Crimes Against Children Task Force.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorney’s Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. For additional resources for survivors or victims, help is available at the National Center for Missing & Exploited Children, 1-800-THE-LOST (1-800-843-5678) and CyberTipline URL https://report.cybertip.org.
Pursuant to 28 U.S.C. § 515, Associate Deputy Attorney General at Department of Justice Bradley Weinsheimer has directed and authorized the First Assistant United States Attorney for the District of North Dakota to have the status and perform all the authorized functions of a United States Attorney with respect to the matter. This case will be prosecuted by the First Assistant US Attorney, and Child Exploitation and Obscenity Section (CEOS) of the United States Department of Justice. The Justice Department’s Office of International Affairs provided significant assistance in the case.
Anyone with information concerning this investigation is encouraged to contact the Homeland Security Investigations Tip Line, 24 hours a day, seven days a week, at 866-347-2423. Tips can be anonymous.
NOTE: Because this investigation is ongoing, the United States Attorney’s Office for the District of North Dakota will have no additional statements or comment at this time.
Former North Dakota State Senator Charged for Traveling with the Intent to Engage in Illicit Sexual Conduct with a Minor and Receiving Child PornographyRead the Press Release
A former North Dakota state senator made his initial appearance in the U.S. District Court for the District of North Dakota yesterday to face charges for traveling to engage in illicit sexual conduct with a minor and receipt and attempted receipt of child pornography.
According to court documents, from June 2011 through November 2016, Raymon Holmberg, 79, of Grand Forks, is alleged to have repeatedly traveled from North Dakota to Prague, Czech Republic, for the purpose of engaging in commercial sex acts with a person under the age of 18 years. Holmberg is also charged with receiving material depicting a minor engaging in sexually explicit conduct.
If convicted, Holmberg faces a maximum penalty of 50 years in prison.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Jennifer Puhl for the District of North Dakota, and Special Agent in Charge Jamie Holt of Homeland Security Investigations (HSI) St. Paul made the announcement.
HSI, the Internet Crimes Against Children Task Force (ICAC), and the North Dakota Bureau of Criminal Investigations are investigating the case.
Trial Attorney Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and First Assistant U.S. Attorney Puhl are prosecuting the case.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood, in conjunction with ICAC, marshals federal, state, and local law enforcement resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. The ICAC Program is a national network of 61 coordinated task forces focused on investigations of online child sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Anyone with information concerning this investigation is encouraged to contact the HSI Tip Line, 24 hours a day, seven days a week, at 866-347-2423. Tips can be anonymous.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Bureau of Prisons Correctional Officer Sentenced to A Year in Federal Prison for Accepting Bribes from Inmates to Smuggle TobaccoRead the Press Release
TERRE HAUTE- Shauna N. Boatright, 36, of Fisher, Illinois, has been sentenced to one year and a day in federal prison after pleading guilty to accepting a bribe as a public official.
According to court documents, for nine years, Shauna Boatright was employed with the United States Department of Justice, Federal Bureau of Prisons, as a correctional treatment specialist at the Federal Correctional Complex in Terre Haute, Indiana.
In late 2021, Boatright was assigned to monitor an inmate in the facility’s Residential Drug Abuse Program. Boatright told the inmate that she was in financial distress and asked him how she could make some money. Boatright agreed to take bribes to smuggle tobacco into the prison for the inmate. Inmates are prohibited from possessing tobacco in federal prisons. Boatright later took bribes to smuggle tobacco into the prison for a second inmate. After the inmates received the contraband, they directed their associates outside of the facility to transfer money to Boatright using CashApp. Between September 30 and October 27, 2021, Boatright received five CashApp payments from the inmates’ associates totaling $9,800.
“The defendant took an oath to enforce the law and protect those in her care. Instead, she abused her position for her own financial gain—risking the health and safety of her fellow correctional officers and the facility’s inmates,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Public service is a public trust, especially for those entrusted with positions in corrections and law enforcement. The vast majority of corrections officers serve with honesty and integrity, and those who instead choose to break the law themselves must be held accountable. Our office is committed to working closely with the FBI and DOJ-OIG to root out all forms of corruption or abuse in our federal prisons.”
“We trust Federal Bureau of Prisons employees to conduct themselves with honesty and integrity. Ms. Boatright compromised her integrity for a bribe, and in the process, endangered her fellow Correctional Officers by introducing contraband into the prison,” said William J. Hannah, Special Agent in Charge of the Department of Justice Office of the Inspector General’s Chicago Field Office.
The FBI and Department of Justice- Office of Inspector General’s Chicago Field Office investigated this case. The sentence was imposed by U.S. District Court Judge, James P. Hanlon. Judge Hanlon also ordered that Boatright be supervised by the U.S. Probation Office for 2 years following her release from federal prison and pay a $500 fine.
U.S. Attorney Myers thanked Assistant United States Attorney, James M. Warden, who prosecuted this case.
Florida Man Sentenced to 10 Years in Prison for Impersonating Federal Officers in Nationwide Elder Fraud SchemeRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that CHRISTOPHER L. KEEL, age 53, of Tampa, Florida, was sentenced on October 25, 2023 to 125 months in prison by United States District Judge Ivan L.R. Lemelle. KEEL was sentenced for his role in a nationwide elder fraud scheme in which KEEL, and his co-conspirators, falsely represented themselves to be U.S. Department of Treasury agents, in order to defraud victims of their savings.
According to court documents, KEEL was arrested on April 4, 2022, by Tangipahoa Parish Sheriff’s Office deputies in Hammond, Louisiana, while attempting to defraud a 77-year-old woman identified as “Victim A.” Deputies had received an earlier report from the victim’s son, that his mother had been contacted by people posing as U.S. Department of Treasury agents. These “agents” told Victim A that she should withdraw money from her bank accounts and send it to them for safekeeping because her accounts had been allegedly implicated in fraud or money laundering. Beginning in early March 2022, Victim A transferred approximately $60,000 via Green Dot cards to the “agents.” The “agents” also instructed Victim A to give an additional $60,000 to another “agent” on April 3rd. Victim A complied and handed over this sum to the “agent”, later identified as KEEL, at a mall in Hammond. The next day, the perpetrators called Victim A and instructed her to withdraw the remaining funds from her accounts and hand them over as well. Victim A’s bank contacted her son, who then called the police.
While deputies met with Victim A on April 4th, the “agents” called her again and gave her instructions to hand over the rest of her money. Deputies arranged a sting operation and arrested KEEL after he approached Victim A in the mall parking lot. Victim A identified KEEL as the same man she met with the prior day. Deputies seized a cell phone and hotel receipts from KEEL.
Agents with Homeland Security Investigations (HSI) continued the investigation and learned that KEEL and a co-conspirator, had traveled to New Orleans from Seattle within the past 48 hours using plane tickets purchased with the same credit card. HSI Agents identified another victim (“Victim B”), a 76-year-old woman, who had been defrauded out of $300,000. A search of KEEL’S phone showed that he sent a photograph of a box with Victim B’s name and address on it. Victim B said she used this box to deliver her money to the “agent” she met with in Tukwila, Washington.
HSI Agents also identified another victim (“Victim C”), an 80-year-old woman living in Bossier Parish, Louisiana. HSI Agents learned that Victim C had withdrawn $36,000 from her account because purported federal “agents” called and told her that her accounts had been compromised. However, prior to delivering the money, local police were contacted and waited at her home. Police observed a vehicle circle near Victim C’s house then depart. An officer recorded the vehicle’s license plate. Later, HSI Agents obtained rental records showing that the vehicle had been leased by a co-conspirator at the time of the attempted fraud.
The search of KEEL’S cell phone revealed his contacts with other co-conspirators, dating back to 2021, and his travel to other states, including Texas and Oklahoma, to further the conspiracy. HSI and Federal Bureau of Investigation Agents determined that, since October 2021, KEEL and his co-conspirators caused approximately $4,498,327 in losses, actual and attempted, to 31 victims located throughout the United States.
KEEL previously had pleaded guilty to both counts of the superseding indictment pending in this case. As to Count 1, conspiracy to commit wire fraud, Judge Lemelle sentenced KEEL to 125 months in prison and three years of supervised release. As to Count 2, false impersonation of an officer or employee of the United States, KEEL was sentenced to 36 months in prison and one year of supervised release, both terms to be served concurrently. KEEL was also ordered to pay $200 in mandatory special assessment fees. Judge Lemelle ordered that a restitution hearing be set on December 6, 2023.
Elder fraud complaints may be filed with the Federal Trade Commission at www.ftccomplaintassistant.gov or at 1-877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime at www.ovc.gov. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website at www.elderjustice.gov.
If you need assistance or to report elder abuse, please contact your local adult protective services agency through the Eldercare Locator or by call the helpline at 1-800-677-1116 Monday – Friday 9am - 8pm EST. To report elder fraud, please visit the FBI’s IC3 Elder Fraud Complaint Center or contact the dedicated National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311 Monday – Friday, 10:00 am – 6:00 pm EST.
U.S. Attorney Evans praised the work of the Homeland Security Investigations, New Orleans Field Office, in investigating this matter. U.S. Attorney Evans also thanked the Federal Bureau of Investigation (Detroit Field Office,) the U.S. Attorney’s Office for the Western District of Michigan, Homeland Security Investigations (Seattle Field Office,) the Tangipahoa Parish Sheriff’s Office, and the Bossier Parish Sheriff’s Office, for their assistance in this successful prosecution. Assistant U.S. Attorney Matthew R. Payne, Senior Litigation Counsel, is in charge of the prosecution.
Five individuals sentenced for their role in sex trafficking schemeRead the Press Release
ATLANTA – Five individuals have been sentenced for their involvement in a sex trafficking scheme that occurred throughout the Northern District of Georgia. The conduct came to light after a minor victim was reported missing in Miami, Florida when her parents realized she failed to board a flight to Honduras. The minor had been transported by two defendants to Georgia and forced to commit commercial sex acts and participate in “sex parties.”
“Sex trafficking exploits and traumatizes some of the most vulnerable members of our society,” said U.S. Attorney Ryan K. Buchanan. “Sex trafficking victims from immigrant communities can be especially fearful of reporting these crimes. So, our office is grateful for the diligence of our federal, state, and local law enforcement partners who remained steadfast in achieving the trust of the victims in this case and helping to secure justice for these young girls and their families.”
“These criminals were more concerned with their own selfishness and greed than the terrible circumstances they exposed minors to,” said Brian Ozden, Assistant Special Agent in Charge of FBI Atlanta. “These crimes are among the most depraved on the books. With a victim-centered approach, the FBI will continue working with our law enforcement partners to hold those who choose to prey on our most vulnerable citizens accountable.”
“The investigators and U.S. Attorney’s office did a great job prosecuting this case. I am pleased that the Dalton Police Department was able to play a role in getting these individuals off the streets,” said Dalton Police Chief Cliff Cason.
According to U.S. Attorney Buchanan, the charges and other information presented in court: Brian Hernandez Acosta, along with co-defendants Nilageo Alvarez Acosta, Jaime Adam Riano, Anthony Joseph Lawhon, and Brandi Rice Stumpe, conspired to traffic minor girls for commercial sex throughout North Georgia. Beginning in or around November 2015, and continuing until December 2016, the defendants caused at least six girls between 16 and 17 years old to engage in prostitution, including by using force, fraud, and coercion.
Hernandez Acosta, after pursuing some of the girls on Facebook and Snapchat, posted provocative photographs of them in the adult entertainment and escort sections of Backpage.com, a classified advertisement website seized by the Department of Justice. Hernandez Acosta used these ads to solicit men to engage in sex with the minors for money. The advertisements used fake names for the minors and falsely listed the girls’ ages as between 19 through 21 years old.
Hernandez Acosta and his brother, Alvarez Acosta, forced one 16-year-old girl to engage in sex with men after driving her from Florida to Georgia after falsely claiming they would provide the girl a place to live. The defendants required the young girls to engage in sex acts with multiple men each night and kept a large portion of the money they earned. Riano acted as the co-defendants’ driver and transported the minors to hotel locations throughout the district, where the girls were forced to engage in commercial sex acts.
Between July 2016 and December 2016, co-defendants Anthony Joseph Lawhon and Brandi Rice Stumpe hosted numerous sex parties at their residence in Canton, Georgia, where they engaged in sex acts with minor girls and young women, while plying them with alcohol and cocaine. Investigators recovered images of some of this conduct on Hernandez Acosta’s cellphone. Lawhon paid Hernandez Acosta thousands of dollars in exchange for commercial sex and cocaine.
Chief U.S. District Judge Timothy C. Batten, Sr. sentenced the defendants for their respective roles in the criminal scheme as follows:
- Jaime Adam Riano, 34, of East Ridge, Tennessee, was sentenced to seven years in prison to be followed by 10 years of supervised release. Riano pleaded guilty on November 17, 2017, to two counts of sex trafficking children under 18 years old.
- Nilageo Alvarez-Acosta, 37, of Camaguey, Cuba, was sentenced to 23 years in prison to be followed by 20 years of supervised release. Alvarez-Acosta pleaded guilty on April 11, 2019, to the offense of sex trafficking of a minor, transportation of a minor for prostitution, and two counts of conspiracy to commit sex trafficking of a minor.
- Hernandez Acosta, 32 of Havana, Cuba, was sentenced to 30 years in prison to be followed by 20 years of supervised release. Acosta was sentenced after pleading guilty on July 1, 2019, to conducting a child exploitation enterprise, sex trafficking minors by force, fraud, or coercion, sex trafficking of children under 18 years old, transporting a minor in interstate commerce for prostitution, producing child pornography, and distributing cocaine to a person under 21 years old.
- Brandi Rice Stumpe, 40, of Powder Springs, Georgia, was sentenced to five years in prison to be followed by five years of supervised release, including 100 hours of community service. Stumpe pleaded guilty on August 5, 2020, to the offense of conspiracy to commit sex trafficking of a minor.
- Anthony Joseph Lawhon, 44, of Atlanta, Georgia, was sentenced to 10 years in prison to be followed by a lifetime of supervised release after pleading guilty on April 14, 2022, to the offense of conspiracy to commit sex trafficking of a minor.
This case was investigated by the Federal Bureau of Investigation and the Dalton Police Department. The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Georgia Bureau of Investigation, and the Murray County Sheriff’s Office also provided assistance.
Assistant U.S. Attorneys Dash A. Cooper and Phyllis Clerk, and former Assistant U.S. Attorney Suzette Smikle, prosecuted the case.
This case is part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Failed Restaurateur Pleads Guilty to Bankruptcy FraudRead the Press Release
The Defendant Hid Money in Panamanian Banks While Discharging $6.2 Million in Debt
Baltimore, Maryland – Keith K. Asante, age 51, formerly of Baltimore County, Maryland, pleaded guilty today to bankruptcy fraud.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration Office of Inspector General (“SBA OIG”), Eastern Region; and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division.
According to his guilty plea, Asante obtained two loans totaling approximately $4 million, one in April 2015 and the second in December 2016, for the construction and operation of two restaurant franchises in the Baltimore area. Asante personally guaranteed both loans, as did a consulting group that he owned, Asante Consulting Group (“ACG”). The Small Business Administration also guaranteed 75 percent of the loan balances to the financial institutions that made the loans.
In the spring and early summer of 2017, Asante’s restaurants experienced financial difficulties, and Asante decided to close both restaurants in the fall of 2017. However, closing the restaurants did not relieve Asante or ACG of their loan guarantees. As detailed in the plea agreement, from approximately March 2017 through April 2018, Asante executed a scheme to defraud his creditors by misappropriating loan funds and using them for non-business purposes; hiding money in undisclosed bank accounts; transferring money to Panamanian bank accounts; filing for bankruptcy; and fleeing to Panama.
Specifically, Asante used $30,000 of the loan funds to make payments to a builder for the construction of a 5,000 square foot home in Perry Hall, Maryland. In addition, on July 5, 2017, Asante formed Temak Technologies, LLC in New Mexico. The publicly available corporate documents did not identify Asante as having any affiliation with Temak. Instead, Asante used the identity of his then-wife, without her knowledge, to form Temak. In fact, Asante was the sole owner of Temak. Asante opened bank accounts on behalf of Temak and began operating the ACG business as Temak, depositing payments from ACG’s clients into the Temak bank account. From September 2017 to December 2017, Asante transferred approximately $260,000 from a Temak bank account and another bank account to banks in Panama.
On January 10, 2018, Asante filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court in Maryland. In his filing, Asante did not disclose his ownership of Temak or his ownership of several bank accounts, including any of his Panamanian bank accounts. In his plea agreement, Asante further admitted that he continued to transfer funds to the Panamanian bank accounts while in bankruptcy, transferring $62,550 to Panamanian banks between January and March of 2018.
At the conclusion of the bankruptcy proceeding, the Trustee was only able to distribute $36,775.31 to Asante’s creditors and on April 22, 2018, the Court granted Asante a bankruptcy discharge which eliminated Asante’s personal responsibility for $6,227,214.39 in debt. Asante began residing in Panama in or around January 2018.
Asante faces a maximum sentence of five years in prison for bankruptcy fraud. U.S. District Judge Deborah L. Boardman has scheduled sentencing for January 23, 2024, at 11am.
U.S. Attorney Erek L. Barron commended the SBA-OIG and the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron also thanked Assistant United States Attorneys Matthew P. Phelps and Jefferson M. Gray, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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El Paso Man Sentenced to 7 Years in Prison for Operating $9 Million Ponzi Scheme Disguised as Crypto Investment FirmRead the Press Release
EL PASO, Texas – An El Paso man was sentenced in a federal court in El Paso to 84 months in prison for wire fraud.
According to court documents, Abner Tinoco, 27, operated a Ponzi scheme through his business by soliciting millions of dollars of investments from clients and claiming he would invest their money into funds dealing with cryptocurrency and foreign exchange markets. Out of approximately $9 million worth of investments deposited into his business accounts, Tinoco spent more than half on personal expenses to include luxury cars, private jets, real estate and jewelry. Tinoco furthered the deception by providing some of the misappropriated funds as profits to his clients.
“This defendant manufactured a predatory scheme, investing less than half a percent of funds from over a dozen victims who trusted him with millions of dollars in investments,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “We will continue to strongly prosecute rapacious fraudsters who take advantage of unsuspecting victims while also holding the defendants responsible for those victims’ lost funds.”
“The defendant orchestrated an elaborate cryptocurrency investment fraud scheme that caused extensive financial harm to unsuspecting victims,” said Special Agent in Charge John S. Morales for the FBI El Paso Field Office. “The FBI El Paso’s Complex Financial Crimes Task Force will continue to investigate and seek justice for individuals who fall victim to criminals who cheat and lie their way into victims’ pockets for the sole purpose of taking their hard-earned income for their own personal gain.”
In a separate civil case stemming from the above scheme, the Commodities Futures Trading Commission (CFTC) secured a civil consent decree against Tinoco and his business, imposing a ban relating to trading activities. The Department of Justice will work to achieve additional restitution for victims of Tinoco’s scheme. A restitution hearing is scheduled to be held in 2024.
The FBI investigated the case.
Assistant U.S. Attorneys Shane Romero and Chris Skillern prosecuted the case.
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Drug trafficker convicted of murder for hire outside parole office – facing mandatory life sentenceRead the Press Release
HOUSTON – A federal jury in Houston has convicted a 50-year-old Houston man on multiple violent crimes related to a drug trafficking conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for six hours before returning the guilty verdicts on all counts against Ronald Brown aka Nuk, Nook or Nookie following a six-day trial. He was found guilty of conspiracy to commit murder for hire, intentional killing related to drug trafficking, two counts of using a firearm in the commission of a murder, kidnapping and using a firearm in relation to the kidnapping as well as conspiracy to distribute and possess with the intent to distribute cocaine.
“Stuffing a zip-tied man into a trunk, raining down gunfire during a car chase and hiring a murderer…all part of Ronald Brown’s illicit cocaine business,” said Hamdani. “People like him destroy communities with the poison they sell and the violence they commit. Brown’s actions cut short someone’s life and put others in peril. And now, thanks to the hard work of federal prosecutors and law enforcement, the only thing in peril is Brown’s freedom.”
During trial, the jury heard from several witnesses who testified about working directly for Brown. He was responsible for moving as much as 100 to 200 kilograms of cocaine each week from Houston to Atlanta, Georgia, on 18-wheeler trucks and car haulers. Once in Atlanta, his associates would divide the shipments before delivering it to Brown’s customers.
In December 2013, law enforcement seized 21 kilograms of cocaine from one of Brown’s associates who had placed the bag in a vehicle at a Valero gas station. Brown was upset by the loss and sidelined him from the drug operation at that time.
The jury also heard testimony from one of Brown’s drivers who was robbed of approximately 56 kilograms of cocaine April 18, 2014. Brown suspected the same individual who lost the drugs at the Valero and another drug associate conspired to steal the cocaine from him.
On April 23, 2014, Brown and others kidnapped the associate, zip-tied his arms and legs and put him in the trunk of Brown’s girlfriend’s vehicle. A good Samaritan picked up the victim and attempted to drive him to safety after the victim managed to free himself from the trunk. However, Brown pursued and shot at them repeatedly, ultimately striking the good Samaritan in the upper body and the associate in the head. Both survived.
One of the kidnappers told the jury he met Brown following the kidnapping who directed him to dump the vehicle and gun used during the shooting. Brown also directed his girlfriend to report the vehicle as stolen.
Following the failed attempt to kill this person, Brown began searching for the other man from the Valero incident whom he also thought was part of the alleged theft on April 18 in order reclaim his drugs. He ultimately decided he wanted to kill him. Testimony revealed Brown was able to obtain the date of the man’s next parole visit. Through a middleman, Brown then hired a shooter and provided him with a handgun.
Following that parole visit on July 1, 2014, the victim returned to his vehicle in the parking lot. The shooter then fired multiple shots at close range at the victim as he sat in the driver’s seat. He died at the scene.
Afterwards, Brown met the shooter and middleman in the parking lot of a grocery store and paid them $20,000.
The defense attempted to convince the jury that other members of Brown’s drug trafficking organization orchestrated the kidnapping and murder. They did not believe those claims and found Brown guilty as charged.
Senior U.S. District Judge Sim Lake presided over the trial and set sentencing for Jan. 29, 2024. At that time, he will get life in a federal prison. Brown has been and will remain in custody pending that hearing.
Assistant U.S. Attorneys Sebastian A. Edwards and Britni Cooper are prosecuting the case.
The FBI conducted the investigation with assistance from the Houston Police Department’s Homicide Division, Texas Department of Criminal Justice – Parole Division, U.S. Marshals Service, Federal Bureau of Prisons and Drug Enforcement Administration.
District Man Sentenced to 15 Years in Prison for Armed Bank Robberies and ThreatsRead the Press Release
WASHINGTON – Mark Stubblefield, 66, of Washington, D.C., was sentenced today to 15 years in prison in connection with two armed bank robberies, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department.
The Honorable Jason Park of the D.C. Superior Court sentenced Stubblefield to 15 years in prison for each bank robbery and 22 months in prison for felony threats, with each of those sentences to run concurrently. As part of the sentence, Judge Park ordered five years of supervised release and a $300 payment to the fund established by the Victims of Violent Crime Compensation Act.
According to the government’s evidence, Stubblefield threatened to blow up bank tellers at a Truist Bank branch located at Dupont Circle and escaped with $10,000. On August 3, 2023, a jury found Stubblefield guilty of robbery while armed and felony threats in connection with a bank robbery he committed on October 20, 2022. Following that conviction, Stubblefield pleaded guilty to robbery for a second bank robbery. In that offense, on November 15, 2022, Stubblefield robbed the Peoples Bank located north of Dupont Circle. He entered the Peoples Bank around noon disguised with a hat, mask, sunglasses, and dark clothing. He threatened to shoot the bank tellers, putting them in fear for their lives, and demanded money. He left moments later with $7,370 in cash.
Stubblefield was arrested on November 15, 2022, and remains in custody.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of the officers and detectives with the Metropolitan Police Department who investigated the case, as well as members of the prosecution team. They thanked the FBI’s Washington Field Office and Laboratory for providing valuable assistance. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including: Supervisory Litigation Technology Specialist Leif Hickling, Litigation Technology Specialist Charlie Bruce, and Paralegal Specialists Debra McPherson and Antoinette Sakamsa, with valuable assistance from AUSAs Paul Courtney and Jessica Ans.
Finally, they thanked Assistant U.S. Attorneys Carlos A. Valdivia and Alec Levy who prosecuted the case.
District Man Sentenced for the June Killing of a 62-year-Old ManRead the Press Release
WASHINGTON – Demarcus Barnett, 20, of Washington, D.C., was sentenced on October 27, 2023, to eight and a half years in prison and five years of supervised release for voluntary manslaughter while armed. The charge stems from the shooting of 62-year-old Lasanta Qumar McGill, on June 8, 2023, in the Westminster neighborhood.
Barnett pleaded guilty to the offense on August 27, 2023, admitting that after being robbed by two individuals, he chased after them and fired wildly down the sidewalk. In doing so, he struck and killed Mr. McGill, an innocent bystander. The government requested a sentence of 15 years, the top of the range provided by the Voluntary Sentencing Guidelines, given Barnett’s criminal history.
This case was investigated by the Metropolitan Police Department (MPD). It was prosecuted by Assistant U.S. Attorney Kathleen Gibbons.