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Tuesday 12 September 2023
Co-Founder of Multibillion-Dollar Cryptocurrency Scheme “OneCoin” Sentenced to 20 Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that KARL SEBASTIAN GREENWOOD, who co-founded OneCoin with RUJA IGNATOVA, a/k/a “the Cryptoqueen,” was sentenced to 20 years in prison for his orchestration of the massive OneCoin fraud scheme. OneCoin, which began operations in 2014 and was based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency by the same name through a global multi-level-marketing (“MLM”) network. As a result of misrepresentations that GREENWOOD, IGNATOVA, and others made about OneCoin, millions of victims invested over $4 billion worldwide in the fraudulent cryptocurrency. Today’s sentence was imposed by U.S. District Judge Edgardo Ramos. IGNATOVA, who was added to the Federal Bureau of Investigation’s (“FBI”) Top Ten Most Wanted List in June 2022, remains at large.
U.S. Attorney Damian Williams said: “As a founder and leader of OneCoin, Karl Sebastian Greenwood operated one of the largest fraud schemes ever perpetrated. Greenwood and his co-conspirators, including fugitive Ruja Ignatova, conned unsuspecting victims out of billions of dollars with promises of a ‘financial revolution’ and claims that OneCoin would be the ‘Bitcoin killer.’ In fact, OneCoins were entirely worthless, and investors were left with nothing, while Greenwood lined his own pockets with over $300 million. We hope this lengthy sentence resonates in the financial sector and deters anyone who may be tempted to lie to investors and exploit the cryptocurrency ecosystem through fraud.”
According to public court filings and statements made in Court:
GREENWOOD and IGNATOVA co-founded OneCoin Ltd. (“OneCoin”) in 2014. OneCoin was based in Sofia, Bulgaria. OneCoin marketed and sold a fraudulent cryptocurrency by the same name. OneCoin began operating in the United States in or around 2015. Between the fourth quarter of 2014 and the fourth quarter of 2016 alone, the scheme took in more than $4 billion from at least 3.5 million victims.
OneCoin marketed its fake cryptocurrency through a global MLM network of OneCoin members. GREENWOOD conceived of OneCoin’s use of an MLM structure and was OneCoin’s global master distributor and the leader of the MLM network through which the fraudulent cryptocurrency was marketed and sold. Through the MLM structure, OneCoin members received commissions for recruiting others to purchase cryptocurrency packages. As the top MLM distributor of OneCoin, GREENWOOD earned 5% of monthly OneCoin sales from anywhere in the world, which totaled more than $200 million from the fourth quarter of 2014 through the fourth quarter of 2016 alone and exceeded approximately $300 million in total. GREENWOOD’s mastery as a salesman and the use of the MLM structure helped contribute to OneCoin’s rapid growth and incredible success.
From OneCoin’s inception, GREENWOOD and IGNATOVA used the notoriety of Bitcoin to convince investors that OneCoin was the next “can’t miss” investment opportunity. GREENWOOD and IGNATOVA wanted investors to believe that OneCoin was a legitimate cryptocurrency like Bitcoin and deliberately drew the comparison between the two cryptocurrencies through their representations to investors and their marketing materials. For example, in a OneCoin PowerPoint presentation prepared by GREENWOOD, OneCoin described itself as “a unique and innovative cryptocurrency, that is born on the success of the pioneering and famous cryptocoin, Bitcoin.” In another slide, OneCoin highlighted the explosive growth of Bitcoin, stating that “Bitcoins increased their value 75 times in 2013,” and including the following quote from The Guardian newspaper, “Man buys $27 of bitcoin, forgets that he had bought and finds that they’re now worth $886,000.”
In reality, unlike legitimate cryptocurrencies, OneCoin had no actual value and was conceived of by GREENWOOD and IGNATOVA as a fraud from day one. The misrepresentations made by GREENWOOD and others to OneCoin investors were legion, and the cryptocurrency was worthless. Among other things, OneCoin lied to its members about how its cryptocurrency was valued, claiming that the price of OneCoin was based on market supply and demand, when in fact OneCoin itself arbitrarily set the value of the coin without regard to market forces. The purported value of a OneCoin grew steadily from €0.50 to approximately €29.95 per coin, as of in or about January 2019. The purported price of OneCoins never decreased in value.
GREENWOOD also lied to investors about the utility of the tokens included in trader packages, claiming that they could be used to secure positions in OneCoin’s “mining pools,” depicted in promotional materials as computer hardware used to “mine” OneCoins. But there were no mining pools and no computers to mine OneCoin either. GREENWOOD knew that this lie was essential to convincing investors that OneCoin was a legitimate cryptocurrency. As he wrote in an email to IGNATOVA, “[t]he concept of converting tokens into OneCoin is an important phase for validity and truth behind the OneCoin. The so called ‘mining’ of coins is a concept that is very familiar in the industry and a story we can sell to the members.” However, as GREENWOOD and IGNATOVA both knew, OneCoin was “not mining actually—but telling people shit.” In the same email exchange, GREENWOOD asked IGNATOVA, “how can this be investigated and found out?” and “Can any member (trying to be clever) find out that we actually are not investing in machines to mine but it is merely a piece of software doing this for us?”
OneCoin also claimed to have a private “blockchain,” or a digital ledger identifying OneCoins and recording historical transactions. But, in reality, OneCoin lacked a true blockchain — that is, a public and verifiable blockchain. Indeed, by approximately March 2015, GREENWOOD and IGNATOVA had started allocating to members OneCoins that did not even exist in OneCoin’s purported private blockchain, referring to these coins as “fake coins.” By at least June 2015, GREENWOOD and IGNATOVA began emailing one another models tabulating current and projected future trader package sales volumes along with outstanding tokens and OneCoins. The spreadsheets identified separate lines for “mined coins,” “mined coins (real),” and “fake coins.” The references to “fake coins” in those records referred to OneCoins that had been distributed to members but did not exist on the OneCoin “blockchain.” Two months later, in August 2015, IGNATOVA wrote to GREENWOOD, in an email with the subject line, “I am afraid this is an issue,” “This is the implication from the big sales 4 weeks ago. 1.3 [billion] fake coins. We are fucked, this came unexpected and now needs serious, serious thinking.”
On July 4, 2015, IGNATOVA announced the official opening of the United States market for OneCoin during an online webinar. During the webinar, IGNATOVA said, among other things: “[I]f we want to go and catch Bitcoin, we never can do this without being strong in the U.S. and without being part of the community. So, um, this is actually why I am so excited about the U.S. as the market. It’s something that is about prestige. It’s a huge market. And, um, it is, I think, a place of innovation, of Wall Street, a place where we have to be if we want to be big.”
Many victims in the United States invested in fraudulent OneCoin cryptocurrency packages, including residents of the Southern District of New York. In total, more than 3.5 million victims invested in OneCoin and lost more than $4 billion dollars from the scheme —money that GREENWOOD, IGNATOVA, and others used to fund extravagant lifestyles. As the top MLM distributor of OneCoin, GREENWOOD earned more than $300 million during the scheme, much of which he spent on his own lavish lifestyle. For example, in or around December 2015, GREENWOOD used approximately $10,000 of fraud proceeds to stay at an exclusive five-star resort in Brazil. Later that month, GREENWOOD used an additional $21,000 of fraud proceeds to stay at a luxury villa with a beach view in Koh Samui, Thailand. Later, when GREENWOOD traveled to Barcelona in May 2016, he used investor funds to stay at another luxury five-star hotel and rented a Range Rover for the duration of his trip.
GREENWOOD also used proceeds from the scheme to purchase luxury designer clothes, footwear, and watches totaling approximately $2 million; pay a down payment of approximately 475,000 British Pound Sterling for a Sunseeker yacht; and to purchase real estate properties in various countries, including in Spain, Dubai, and Thailand. Finally, GREENWOOD used investor funds to travel around the world on a private “OneCoin” airplane and posted promotional videos of his travel online.
GREENWOOD was arrested at his residence on the island of Koh Samui, Thailand, in July 2018 and was extradited to the United States to face fraud and money laundering charges in October 2018. GREENWOOD has been detained since his arrest in July 2018.
On October 12, 2017, IGNATOVA was charged with OneCoin-related fraud and money laundering charges in the U.S. District Court for the Southern District of New York, and a federal warrant was issued for her arrest. On October 25, 2017, IGNATOVA traveled on a commercial flight from Sofia, Bulgaria, to Athens, Greece, and has not been seen publicly since. IGNATOVA was added to the FBI’s Top Ten Most Wanted List in June 2022. The FBI is offering a $100,000 reward for information leading to IGNATOVA’s arrest.
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In addition to his prison term, GREENWOOD, 46, a citizen of Sweden and the United Kingdom, was ordered to pay approximately $300 million in forfeiture.
Mr. Williams praised the outstanding investigative work of the Internal Revenue Service-Criminal Investigation and the FBI, which jointly conducted this investigation with Special Agents from the U.S. Attorney’s Office. Mr. Williams also thanked the New York County District Attorney’s Office for their assistance throughout the investigation. Mr. Williams further thanked Thai authorities, including the Royal Thai Police and the Office of the Attorney General, for their assistance in the arrest and extradition of GREENWOOD. The Justice Department’s Office of International Affairs worked with law enforcement partners in Thailand to secure the arrest and extradition of GREENWOOD.
If you have any information about IGNATOVA’s whereabouts, please contact your local FBI office or the nearest American Embassy or Consulate. Tips can be reported anonymously and can also be reported online at tips.fbi.gov.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Folly, Juliana N. Murray, and Kevin Mead are in charge of the prosecution.
Church Rock Man Charged with Sexual AbuseRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Nathaniel Luz appeared in federal court on a complaint charging him with four counts of aggravated sexual abuse, one count of sexual abuse of a minor and two counts of abusive sexual contact. Luz, 31, of Church Rock and a registered member of the Navajo Nation, will remain in custody pending trial.
According to court documents, between January 2014 and April of 2022, Luz allegedly engaged in sexual acts with a child who had not then attained the age of 12 years in five separate incidents. Then, between January 2021 and December 2021, Luz allegedly engaged in sexual contact with a second victim, a child who had not yet attained the age of 12 years. Lastly, in August 2022, Luz allegedly engaged in a sexual act with a third victim, a child who had attained the age of 12 years but had not attained the age of 16 years.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted on the current charges, Luz faces up to life in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office, Navajo Police Department and the Navajo Department of Criminal Investigations investigated this case. Assistant U.S. Attorney Brittany DuChaussee is prosecuting the case.
Cherokee, Iowa Man Sentenced to 4 Years in Federal Prison for Illegally Possessing More than 30 FirearmsRead the Press Release
A Cherokee, Iowa man who was found to be in possession of 23 firearms, 3 short-barreled rifles and 6 silencers, was sentenced September 11, 2023, to 4 years in federal prison.
Jason Ballou, age 52, from Cherokee, Iowa, received the prison term after an April 27, 2023, guilty plea to possession of a firearm by a prohibited person.
Ballou was found to be in possession of the firearms while law enforcement was executing a state search warrant, investigating another crime. Ballou was previously convicted of possession of prohibited firearms (a machine gun), and unlawful receipt of unregistered firearms, both in the Northern District of Iowa.
Ballou was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 48 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Ballou is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by Cherokee, Iowa Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, (ATF) and was prosecuted by Assistant United States Attorney Ron Timmons.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4098.
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Carter County Resident Pleads Guilty to Failing to Register as A Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Morris Hulen Mapp, age 70, of Ardmore, Oklahoma, entered a guilty plea for Failure to Register as a Sex Offender.
According to U.S. Marshals, Mapp, a convicted sex offender, failed to alert authorities to his presence in the Eastern District of Oklahoma as required by law. Mapp, who received felony convictions in the State of Texas in 1992 for Indecency with a Child, knowingly failed to register in the State of Oklahoma despite traveling from Texas and residing in the state from May 2022 until his arrest on May 19, 2023.
The charges arose from an investigation by the U.S. Marshal Service and the Carter County Sheriff’s Office.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea in Muskogee and ordered the completion of a presentence investigation report. Mapp will remain in custody of the U.S. Marshal pending sentencing.
Special Assistant United States Attorney Genevieve A. Ozark represented the United States.
Cape Coral Men Sentenced for Their Roles in A Multi-Million Dollar Credit Card Fraud SchemeRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Carlos Tejeda (62, Cape Coral) to 16 years in federal prison, Juan Tejeda (35, Cape Coral) to 15 years in federal prison, and Pedro Pelaez (59, Cape Coral) to 6 years in federal prison for their roles in a large-scale credit card fraud scheme which operated in Cape Coral between late-2015 and mid-2018. On April 27, 2023, a federal jury had found father-and-son ringleaders Carlos and Juan Tejeda guilty of 44 federal offenses, including conspiracy to commit wire fraud, wire fraud, aggravated identity theft, conspiracy to commit money laundering, production of counterfeit access devices, and possession of device-making equipment. For his role in the fraud, the jury found Pelaez guilty of 11 federal offenses, including conspiracy to commit wire fraud, wire fraud, aggravated identity theft, and conspiracy to commit money laundering.
According to evidence presented during the seven-day trial, Carlos Tejeda recruited several friends and associates, including Pedro Pelaez, to create shell companies, obtain credit card processing terminals for their shell companies, and then permit Carlos Tejeda to swipe counterfeit credit cards fraudulently encoded with stolen credit and debit card numbers using the shell company credit card terminals. Evidence showed that Juan Tejeda’s primary role was to encode the counterfeit cards for his father Carlos Tejeda, but that he personally swiped counterfeit cards on the shell company terminals as well. Each fraudulent transaction was typically between $1,000 and $3,000, but the same stolen card number was often used several times across multiple shell companies before victim cardholders from across the United States realized that their card numbers had been compromised.
After the stolen funds were deposited into the shell company bank accounts, the shell company owners would kickback a pre-determined percentage of the fraudulent proceeds to Carlos or Juan and keep the remainder for themselves. In total, nine shell companies were used to perpetrate the fraud, including those personally opened by Carlos and Juan Tejeda. Credit card transaction data presented to the jury showed that during the duration of the fraud, thousands of credit card charges totaling more than $2.6 million were attempted or conducted on the shell company terminals. In total, nine people have now been convicted and sentenced for their roles in this fraud, including the three above-named individuals.
This case was investigated by the United States Secret Service and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney Simon R. Eth.
California, PA Resident Indicted on a Charge of Theft by a Credit Union EmployeeRead the Press Release
PITTSBURGH, PA – On August 22, 2023, a resident of California, Pennsylvania, was indicted by a federal grand jury in Pittsburgh on a charge of theft by a credit union employee. Metz made an initial appearance in Federal Court today and was released on $10,000 unsecured bond United States Attorney Eric G. Olshan announced.
The one-count Indictment named Heidi Metz, 40, of California, Pennsylvania as the sole defendant.
According to the Indictment presented to the court, from June 2021 through September 2022, Metz stole more than $40,000 from Cal-Ed Federal Credit Union.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine of not more than $1,000, and a term of supervised release of not more than five years; or any or all of the above. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bitcoin ATM Company Forfeited over $1 Million for Conspiring to Violate the Bank Secrecy ActRead the Press Release
SACRAMENTO, Calif. — Folsom company Amani Investments LLC, which operated Coinucopia kiosks that exchanged U.S. currency for Bitcoin, forfeited $1 million in currency, a Mercedes-Benz, Bitcoin, and other items for its criminal efforts to avoid reporting requirements under the Bank Secrecy Act, U.S. Attorney Phillip A. Talbert announced.
In February 2023, Amani Investments LLC, doing business as Coinucopia, pleaded guilty to conspiring to avoid filing Currency Transaction Reports (CTRs) that are required under federal law. The federal Bank Secrecy Act was enacted by Congress to combat the laundering of criminal proceeds, and it requires money services businesses to report each transaction involving more than $10,000 in currency. Willful violation of the requirement to file these reports, commonly called CTRs, is a federal criminal offense.
According to court documents, on multiple occasions Amani Investments exchanged over $10,000 in U.S. currency for Bitcoin without filing a CTR, as required by the Bank Secrecy Act. Many transactions were conducted during face-to-face exchanges of more than $10,000 in cash for Bitcoin with a Managing Officer of Amani Investments, all without the filing of a CTR. In total, approximately $1 million was involved in the crime. Today the court finalized Amani Investments’ forfeiture order, which included a Mercedes-Benz E63, Bitcoin, gold coins, and $1 million in United States currency.
“Federal currency transaction reporting requirements are intended to protect our financial system from the influx of criminal proceeds,” said U.S. Attorney Talbert. “The U.S. Attorney’s Office will continue to hold accountable those who seek to evade these requirements.”
“Today’s sentence holds Amani Investments, dba Coinucopia, a registered Money Service Business, accountable for violating the Bank Secrecy Act,” said Tatum King, Special Agent in Charge, HSI San Francisco / NorCal. “We know that money is the lifeblood of criminals as evidenced by the $1 million forfeiture, which is why it is a primary focus for HSI across all of our investigative programs. We appreciate the work of HSI personnel with FBI, USPIS, DEA, IRS-CI, USAO Eastern District, and Sacramento County Sheriff’s Office who worked this multi-year case collaboratively and resulted in the substantial forfeiture of ill-gotten gains.”
This case is the product of an investigation by Homeland Security Investigations (HSI), as part of the Northern California Illicit Digital Economy (NCIDE) Task Force, consisting of agents from HSI, the U.S. Postal Inspection Service, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the U.S. Postal Service Office of Inspector General, and the Drug Enforcement Administration. The NCIDE Task Force is a joint, federal task force focused on targeting all forms of dark web and cryptocurrency criminal activity in the Eastern District of California. Assistant U.S. Attorneys Robert C. Abendroth and Veronica M.A. Alegría prosecuted the case.
- Albuquerque Smoke Shop Owner Sentenced to 3 Years in Prison for Drug Offense
Albuquerque Man Pleads Guilty to Firearms OffensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Brendan Iber, Special Agent in Charge of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced that Marquez Martinez pled guilty to dealing in firearms without a license and two counts of unlawful possession and transfer of a machine gun. Martinez, 25, of Albuquerque, will remain at the La Pasada Halfway House under numerous conditions of release pending sentencing, which has not been scheduled.
According to court documents, in January of 2023, Martinez came to the attention of the Albuquerque Police Department (APD) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) when a West Mesa High School student was found on campus with two firearms in their possession, one being a Glock which had been modified with a machine gun conversion device commonly referred to as a “switch.” The Glock was traced back to its original purchaser, Martinez. Over the next five months, undercover detectives from the Albuquerque Police Department conducted 4 controlled purchases of both firearms and machine gun conversion devices from Martinez through Instagram and tied two more guns seized during traffic stops back to him. During that time, the ATF also tracked Martinez’s firearm purchases, counting a total of approximately 35 purchased in 5 months. Based on this evidence, the ATF executed a search warrant on Martinez’s residence where they located approximately 15 firearms, a large amount of ammunition, and numerous ammunition magazines.
When questioned by agents, Martinez admitted to purchasing hundreds of firearms since turning 21, including at least 50 purchases in the past 6 months.
At sentencing, Martinez faces up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorney Patrick E. Cordova is prosecuting the case.
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Adair County Resident Pleads Guilty to Kidnapping and Federal Firearm ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Justin Kyle Muskrat, age 37, of Bunch, Oklahoma, entered a guilty plea to kidnapping and illegal possession of a firearm and ammunition.
The Indictment filed on April 13, 2023, charged Muskrat with one count of Kidnapping in Indian Country and one count of Felon in Possession of Firearm and Ammunition.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Adair County Sheriff’s Office, and the Cherokee Nation Marshal Service.
According to investigators, Muskrat kidnapped an individual from a Muskogee County residence on March 15, 2023. Armed with a machete, Muskrat forced the victim into a car trunk and transported him to an Adair County residence. There, Muskrat bound, assaulted, and threatened the victim. Upon arrest, law enforcement officers found Muskrat, a felon, illegally in possession of a Ruger, Model LCP, .380ACP caliber, semi-automatic pistol and several rounds of ammunition.
The crimes occurred in Adair County, Oklahoma, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Muskrat will remain in custody of the U.S. Marshall pending sentencing.
Assistant United States Attorneys T. Cameron McEwen and Josh Satter represented the United States.
Ada Resident Pleads Guilty to Assault with A Dangerous Weapon and RobberyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Alexander Elias Clark, age 22, of Ada, Oklahoma, entered a guilty plea to one count of assault with a dangerous weapon and one count of robbery.
The indictment, filed on August 9, 2023, charged Clark with one count of Assault with Intent to Commit Murder in Indian Country, one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, one count of Assault Resulting in Serious Bodily Injury in Indian Country, and one count of Robbery in Indian Country.
According to investigators, on June 14, 2023, Clark attacked an individual at an Ada residence, stabbing the victim repeatedly before fleeing. Clark later entered a nearby convenience store, threatened to kill the cashier, and stole a 30-pack of beer.
The crimes occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Chickasaw Nation Lighthorse Police, the United States Department of the Interior - Bureau of Indian Affairs, the Ada Police Department, and the Pontotoc County Sheriff’s Office.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Clark was remanded to the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney James Seaman represented the United States.
Monday 11 September 2023
Westmoreland County Resident Sentenced to 36 Months’ Imprisonment for Conviction of Bank Fraud and Aggravated Identity TheftRead the Press Release
PITTSBURGH, PA - A resident of Westmoreland County, has been sentenced in federal court to 36 months’ imprisonment and four years’ supervised release on her conviction of bank fraud and aggravated identity theft, United States Attorney Eric G. Olshan announced today.
United States District Mark R. Hornak imposed the sentence on Nina Marie Barkley, age 36, of Westmoreland County, Pennsylvania.
According to information presented to the court, while Barkley was employed as a counselor at a drug treatment facility, she stole the personal identification information of a patient, identified in the Indictment as K.P., including K.P.’s Social Security number, date of birth, and home residence. Barkley then used K.P.’s personal identification information, without K.P.’s permission or authorization, to obtain loans from various financial institutions. The total losses associated with the fraud were over $60,000.
The court also was informed that, after Barkley was charged with the offenses in the Indictment, she continued to use K.P.’s personal identification information, without K.P.’s permission or authorization, and applied for government assistance through the Emergency Rental Assistance Program (“ERAP”) in K.P.’s name. In addition, after being charged with the offenses in the Indictment, Barkley stole the personal identification information of another individual and used that information to attempt to obtain another line of credit.
Assistant United States Attorney Karen Gal-Or prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, U.S. Department of Health and Human Services, Pennsylvania State Police and West Mifflin Police conducted the investigation leading to the successful prosecution of Barkley.
West Virginia man sentenced for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dakota Brian Whetzel, age 25, of Romney, West Virginia, was sentenced today to 87 months in federal prison for possession of child pornography.
According to court documents and statements made in court, the West Virginia State Police received a cybertip about child pornography that led to a search warrant of Whetzel’s apartment. Officers seized electronic devices and found hundreds of child pornography images, some depicting children under the age of 12.
Assistant U.S. Attorney Kimberley Crockett prosecuted the case on behalf of the government.
The West Virginia State Police investigated.
U.S. District Judge Gina M. Groh presided.
U.S. Attorney's Office for the Eastern District of Tennessee Announces $1.3 Million in Department of Justice Grant Funding for Youth MentoringRead the Press Release
KNOXVLLE, Tenn. On September 11, 2023, the United States Attorney’s Office for the Eastern District of Tennessee announced $1.3 Million in Department of Justice, Office of Juvenile Justice, and Delinquency Programs (OJJDP) grant funding to support the mentoring for youth affected by opioid and other substance misuse.
- Knoxville Leadership Foundation - $650,000.
- Boys and Girls Clubs of the Tennessee Valley – $650,000.
OJJDP envisions a juvenile justice system centered on the strengths, needs, and voices of youth and families. Young people and family members with lived experience are vital resources for understanding and reaching persons involved or at risk of involvement with youth-serving systems. OJJDP asks stakeholders to join them in sustainably integrating bold, transformative youth and family partnership strategies into their daily work. OJJDP believes in achieving positive outcomes for youth, families, and communities through meaningful partnership and active partnerships, ensuring they play a central role in collaboratively developing solutions.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page. For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities.
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U.S. Attorney Sellinger to Hold Fourth Town HallRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger and members of his staff will meet with residents in Trenton next week at the fourth in a series of planned town hall meetings. The town hall series is one initiative of U.S. Attorney Sellinger to engage directly with citizens’ concerns and ultimately to improve public safety in New Jersey.
The town hall will be held on Tuesday, Sept. 12, 2023, doors opening at 6:00 p.m., with the program beginning promptly at 6:30 p.m. and running until 8:30 p.m. at the Greater Mt. Zion AME Church, 42 Pennington Ave., Trenton, New Jersey, 08618. U.S. Attorney Sellinger and members of his staff will discuss the work of his office in a variety of areas, including federal civil rights enforcement, bias and hate crimes, environmental justice, violent crime, opioid-related crime, and post-incarceration programs.
This is a community event and is open to the public.
Two Jamestown Men Plead Guilty for Their Roles in Heroin/Fentanyl ConspiracyRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Justin Yuchnitz, 29, and Brandon Andino, 38, both of Jamestown, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo for their roles in a Jamestown drug conspiracy. Yuchnitz pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, heroin and fentanyl, and faces a maximum penalty of 20 years in prison and a fine up to $1,000,000. Andino pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of fentanyl, and faces a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that defendant Yuchnitz sold heroin and fentanyl that he received from co-defendant Joseph Zaso, utilizing electronic media, such as Facebook and CashApp, to carry out his drug trafficking activities. For example, in February 2021, he utilized his CashApp account to pay $2000 to Zaso to cover his drug debts. During the conspiracy, defendant Andino distributed large amounts of heroin and fentanyl that he also received from Joseph Zaso. Andino also distributed heroin and fentanyl on behalf of Zaso to Zaso’s associates and customers.
Co-defendants Brian Cessna, Denver Komenda, and Richard Philbrick were previously convicted. Co-defendants Joseph Zaso and Kyle Lewis are scheduled to go to trial in February 2024.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The sentencings are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Jamestown Police Department, under the direction of Chief Timothy Jackson, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James B. Quattrone.
Yuchnitz is scheduled to be sentenced on January 5, 2024, at 9:30 a.m., which Andino is scheduled to be sentenced on January 8, 2024, at 9:30 a.m., both before Judge Vilardo.
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Tucson Man Sentenced to 10 Years for Possession of Child Sex Abuse MaterialRead the Press Release
TUCSON, Ariz. – Kyle Adam Haney, 60, of Tucson, Arizona, was sentenced by United States District Judge John C. Hinderaker on August 31, 2023, to 120 months in prison. Haney pleaded guilty on October 6, 2022, to one count of Possession of Child Pornography. When Haney is released from prison, he will be on supervised release for the remainder of his life and will be required to register as a sex offender.
Haney was identified in connection with an investigation into the production of child sex abuse material by the Federal Bureau of Investigation. In the course of that investigation, agents discovered communications by Haney about sharing sexually explicit images of prepubescent children. Agents subsequently searched Haney’s phone pursuant to a search warrant and discovered several sexually explicit images of minor children which included infants and toddlers.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorneys Carin C. Duryee and Scott A. Turk, District of Arizona, Tucson, handed the prosecution.
CASE NUMBER: CR 21-02970-TUC-JCH
RELEASE NUMBER: 2023-135_Haney# # #
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 Memphis Men Plead Guilty in Series of Carjackings, KidnappingsRead the Press Release
Memphis, TN – All three men responsible for a series of violent carjackings and kidnappings that occurred over last year’s holiday season have pled guilty to the charges against them. Adrian Pegues, 19, Malik Malone, 18, and Alan Key, 20, all of Memphis, have each pled guilty in federal court to a series of violent events that occurred in December 2022 in Memphis and Germantown. Pegues and Key also pled guilty to an additional carjacking that occurred in Memphis in July 2022. United States Attorney Kevin G. Ritz announced the changes of plea today.
According to U.S. Attorney Ritz and information presented in court, on December 20, 2022, Pegues and Malone carjacked and kidnapped two individuals separately, and forced them at gunpoint to withdraw money from ATMs. The facts of those incidents are as follows:
- The two men kidnapped and carjacked the first victim from her driveway in East Memphis. They forced her to drive her vehicle to an ATM at First Citizens National Bank in Arlington, TN and withdraw money from her bank account. After they forced her to drive around looking for another ATM, they eventually returned to the same ATM and again forced her to withdraw money.
- Pegues and Malone then ordered the first victim to follow another vehicle into an apartment complex in Cordova, TN, where they kidnapped and carjacked a second victim, again at gunpoint.
- Pegues and Malone split up and attempted to force the victims to withdraw more money from ATMs. Eventually, both Pegues and Malone ordered the victims to drop them off in Memphis and they fled.
On December 30, 2022, Pegues, Malone, and Alan Key attempted to kidnap a person at the Saddle Creek shopping center in Germantown with the intent to commit another robbery.
- The trio parked next to the victim’s vehicle and waited as she exited a store and approached her vehicle.
- As the victim opened her door, Pegues and Malone bumped the victim with their car door, ordered her to get in the vehicle, and tried to get into her vehicle.
- The victim struggled with Pegues and Malone. An armed private citizen saw what was occurring and intervened. When confronted, the men got back into their vehicle and escaped.
Additionally, investigators determined that Pegues and Key committed another carjacking in Memphis on July 25, 2022. During this carjacking, Pegues was armed with a firearm. Both Pegues and Key also pled guilty to this carjacking and the use of a firearm in this incident as well.
On May 25, 2023, Malik Malone appeared before Chief United States District Judge Sheryl H. Lipman and pled guilty to all charges.
On September 5, 2023, Adrian Pegues appeared before Magistrate Judge Charmiane G. Claxton and pled guilty to 11 of the 12 charges against him. On September 6, 2023, Alan Key also appeared before Magistrate Judge Charmiane G. Claxton; he pled guilty to all charges against him.
Malone is scheduled to be sentenced by Chief Judge Lipman on October 20, 2023. Pegues and Key will be sentenced by Chief Judge Lipman on December 18, 2023. There is no parole in the federal system.
This case was investigated by the FBI’s Safe Streets Task Force, the Germantown Police Department, and the Memphis Police Department.
Assistant United States Attorney Greg Wagner is handling the prosecution of this matter for the government.
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Thornton Man Charged as Felon in Possession of a FirearmRead the Press Release
Denver—The United States Attorney’s Office for the District of Colorado announces that 36-year-old Dean Fabiano, of Thornton, has been charged by criminal complaint with Possession of a Firearm by a Prohibited Person.
According to the criminal complaint unsealed in federal court, Fabiano has multiple felony convictions that prohibit him from possessing firearms and ammunition. When, on September 6, 2023, federal law enforcement executed a search warrant at Fabiano’s home, they found 18 firearms, as well as various firearms parts, suspected drugs, potential destructive devices, and Nazi memorabilia and drawings. During the search, law enforcement found a letter from a storage facility where Fabiano rented a storage unit. Law enforcement then obtained and executed a search warrant at the storage unit, where they found more firearms and firearm parts.
The Defendant made his initial appearance in federal court in Denver on September 8, 2023, where he was advised by United States Magistrate Judge Neureiter of the charge pending against him.
This case is being investigated by Homeland Security Investigations and the ATF. Assistant United States Attorney Kelly Churnet is handling the prosecution.
The charge in the criminal complaint is an allegation and the Defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Case Number: 23-mj-00156
Tacoma man sentenced to 28 years in prison for production and possession of images of child rape and abuseRead the Press Release
Tacoma – A 40-year-old Tacoma resident was sentenced today in U.S. District Court in Tacoma to twenty-eight years in prison and a lifetime of supervision for producing and possessing images of child sexual abuse, announced Acting U.S. Attorney Tessa M. Gorman. A 2018 investigation revealed that Lamar Allen Thompson, who was on state supervision as a sex offender for a 2016 conviction for molesting two minor children, filmed his molestation of two different minor children. Washington State Department of Corrections Officers arrested Thompson on November 8, 2018. Thompson has been in state or federal custody ever since. At the sentencing hearing, U.S. District Judge Benjamin H. Settle said that the crimes were “cruel and merciless.”
“This is a lengthy sentence, but necessary in this case to protect the community from an offender who would not be deterred,” said Acting U.S. Attorney Gorman. “Despite a prior prison sentence, despite state supervision and registration as a sex offender, Mr. Thompson preyed on the trust of friends and family to horribly harm additional children.”
According to records filed in the case, Thompson’s creation of images of child sexual abuse came to light when he lost his phone at a Tacoma manufacturing plant where he worked. In an effort to locate the phone’s owner, co-workers saw pictures of child sexual abuse and alerted law enforcement. Law enforcement obtained a warrant to review the phone, determined it belonged to Thompson, and discovered he had filmed his abuse of multiple children.
Following his arrest on federal charges, Thompson asked for multiple trial delays and then pleaded guilty in March 2023, on the morning his trial was supposed to begin.
In asking for a 45-year sentence, Assistant United States Attorney Matthew Hampton wrote to the court, “Lamar Thompson committed unspeakable acts of violence against innocent children. Thompson’s depraved and selfish acts were an attack on those children’s psyches. They, not Thompson, will bear the heavy psychological load that all survivors of child sexual abuse must carry. And they will do so for the remainder of their lives…. These children and their families, not Thompson, will ultimately pay the price for Thompson’s selfishness and cruelty. It therefore falls to this Court to speak for the community and state in no uncertain terms that those who commit acts of sexual abuse against the most vulnerable among us cannot escape justice.”
“Today’s significant sentence reflects the horrific nature of continued child victimization by a repeat sex offender, even after prior registration and conviction,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI is committed to protecting children from predators and encourages the reporting of suspicious behavior to law enforcement.”
The case was investigated by Homeland Security Investigations with assistance from the Tacoma Police Department and the Washington State Department of Corrections.
The case was prosecuted by Assistant United States Attorneys Matthew Hampton and Zachary Dillon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Stafford Man Sentenced to Prison for Tax EvasionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DAVID KAMAL, 61, of Stafford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to eight months of imprisonment, followed by two years of supervised release, for tax evasion. Judge Shea also ordered Kamal to pay a $20,000 fine.
According to court documents and statements made in court, Kamal, who formerly resided in Hebron, willfully evaded taxes for the 2012 tax year by filing a false tax return for that year. On the tax return, Kamal claimed false deductions, including deductions for moving expenses and medical expenses he had not incurred. Kamal subsequently provided false documentation for the moving expenses, including invoices and bank statements, to an attorney for the IRS in connection with U.S. tax court proceedings. Kamal also filed false tax returns for the 2013 through 2017 tax years by claiming false and inflated unreimbursed medical and dental expenses.
Kamal has agreed to cooperate with the IRS to pay $163,264 in back taxes, as well as interest and penalties.
Kamal pleaded guilty to the offense on December 7, 2022.
Kamal, who is released on a $50,000 bond, is required to report to prison on November 17.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
Springfield, Illinois, Man Sentenced to 60 Months and One Day for Manufacturing Methamphetamine and Possessing a FirearmRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Matthew Morlee, 46, was sentenced on September 5, 2023, by Senior U.S. District Judge Sue E. Myerscough to 60 months and one day in prison for manufacturing methamphetamine and for possessing a firearm during and in furtherance of a drug crime.
Morlee was indicted in September 2018 and pleaded guilty in May 2023. After his initial release on bond, Morlee’s bond was subsequently revoked, and he was detained in the custody of the United States Marshals Service.
The statutory penalties for manufacturing a substance containing methamphetamine are up to 20 years’ imprisonment, up to a $1,000,000 fine, and up to a life term of supervised release. The penalties for possessing a firearm during and in furtherance of a drug crime are up to life imprisonment, up to a $250,000 fine, and up to five years of supervised release.
This case was indicted as part of the FBI Safe Streets Task Force which included members of the Federal Bureau of Investigation, Springfield Field Office; Illinois State Police; Springfield Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Chatham Police Department. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Morlee is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Springfield, Illinois, Man Sentenced to 180 Months for Possessing Fentanyl with Intent to Distribute ItRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Jeremy Mitchell, 34, was sentenced on September 8, 2023, by U.S. District Judge Colleen R. Lawless to 180 months in prison for possessing a substance containing fentanyl with intent to distribute it. He was also ordered to serve eight years of supervised release.
Mitchell was indicted in May 2021 and pleaded guilty in April 2023. He has been in the custody of the United States Marshals Service since his arrest in April 2021. Mitchell has numerous drug-related prior convictions, as well as a prior conviction for aggravated battery with a firearm.
The statutory penalties for possessing a substance containing fentanyl with intent to distribute are up to life imprisonment, up to an $8,000,000 fine, and up to a life term of supervised release.
This case was investigated by the Springfield Police Department, Illinois State Police, and the Drug Enforcement Administration. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Mitchell 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.
South Dakota Man Pleads Guilty to Conspiracy to Acquire Controlled SubstancesRead the Press Release
Kenneth Hurd, 32, from Harrisburg, South Dakota, pled guilty in federal court on September 5, 2023, to Conspiracy to Acquire Controlled Substances by Fraud.
At the plea hearing, Hurd admitted that he knowingly conspired with co-defendant, Douglas Kelley, to obtain and acquire fentanyl by means of misrepresentation, fraud, deception, and subterfuge. They used Douglas Kelley’s position as a nurse at MercyOne Hospital in Sioux City to obtain fentanyl and other controlled substances for personal use.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Hurd remains free on bond pending sentencing. Hurd faces, not more than 4 years’ imprisonment without the possibility of parole, a $250,000 fine, and up to 1 year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Kraig Hamit and was investigated by the Iowa Division of Inspections & Appeals, United States Department of Health and Human Services, Sioux City Police Department, and the Federal Bureau of Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-4022.
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Senior Hoover Criminal Gang Member Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
PORTLAND, Ore.—A senior Hoover Criminal Gang member was sentenced to federal prison today for illegally possessing a firearm as a convicted felon.
Eugene Michael Brown, 39, aka “Big Truth,” was sentenced to 30 months in federal prison and three years’ supervised release.
According to court documents, as part of an ongoing federal racketeering investigation of the Hoover Criminal Gang, law enforcement obtained photos online of Brown, a convicted felon, posing with other known Hoover members.
On the evening spanning May 21 and 22, 2022, Brown, who at the time was on post-prison supervision, and several other Hoover members went to an adult club in northwest Portland. Shortly after Brown’s arrival at the club, a physical fight broke out. The fight, between Hoover members and other patrons, spilled out into the club’s parking lot and shots were fired. Video surveillance showed Brown leave the club with a gun and head toward his vehicle. Brown is not believed to have fired any gunshots during this incident. He and four other Hoover members were later charged in Multnomah County Circuit Court for their involvement in the altercation.
Two weeks later, on July 6, 2022, Brown and his girlfriend got into an argument at a gas station on Northeast Broadway Street in Portland and investigators located a 9mm shell casing at the scene. Two days later, investigators executed a search warrant on Brown’s residence and located two 9mm firearms as well as Hoover related clothing, writing, drawings, and photos consistent with Brown’s continued membership in the gang. Lab tests later confirmed Brown’s DNA was present on both firearms.
On November 2, 2022, a federal grand jury in Portland returned an indictment charging Brown with illegally possessing a firearm as a convicted felon. On June 16, 2023, he pleaded guilty to the single charge.
This case was investigated by the FBI with assistance from the Portland Police Bureau, Multnomah County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), 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 prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. 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.
Seneca Man Indicted for Meth Trafficking, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Seneca, Mo., man has been indicted by a federal grand jury for illegally possessing methamphetamine and a firearm.
Jason Daniel Gibson, 40, was charged in a two-count indictment returned by a federal grand jury on Aug. 29, 2023.
The federal indictment alleges that Gibson possessed methamphetamine with the intent to distribute on Sept. 9, 2022. The indictment also charges Gibson with being a felon in possession of a firearm. Gibson allegedly possessed a Henry Repeating Arms .22-caliber rifle on Sept. 9, 2022. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney John D. Hatcher. It was investigated by the Ozark Drug Enforcement Team, the Newton County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missouri State Highway Patrol.
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.
Rochester Man Who Led Drug Conspiracy Going to Prison for More Than 13 Years for Fentanyl Trafficking and Possessing FirearmsRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Tyrik Edwards, 31, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of fentanyl, 10 grams or more of a fentanyl analogue, and 500 grams or more of cocaine, and possession of firearms in furtherance of a drug trafficking crime, was sentenced to serve 160 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that Edwards – a two-time convicted felon – was a leader of a drug trafficking organization that distributed significant quantities of fentanyl, para-fluorofentanyl, and cocaine in the Rochester area, and Augusta, Maine. Other members of the conspiracy included Walter H. Bennett and Ray C. Mack, Jr. The organization operated a drug house on Woodward Street in Rochester, New York, where they sold fentanyl, para-fluorofentanyl, and cocaine to customers. In addition, controlled substances, firearms, and ammunition, were stored at various locations in Rochester, including the Woodward Street residence, along with residences on Argo Park and Clairmount Street. Fentanyl and drug proceeds were stored at an East Avenue apartment the residence of Edwards’ then-girlfriend, Quenteria Wilson, who lived there with her four-year-old son. During the investigation, law enforcement recovered approximately 158 grams of fentanyl, 11 grams of para-fluorofentanyl, and 580 grams of cocaine, along with more than $20,000 in drug proceeds, six firearms, hundreds of rounds of ammunition, and seven firearm magazines.
Ray C. Mack, Jr., and Walter H. Bennett were previously convicted. Mack was sentenced to serve 135 months in prison, Bennett is awaiting sentencing. Quenteria Wilson was convicted of misdemeanor possession of fentanyl and was sentenced to probation.
The sentencing is the result of an investigation by the Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Rochester Police Department and the Greater Rochester Area Narcotics Enforcement Team, under the direction of Chief David M. Smith.
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Repeat Child Predator Sentenced to More Than 10 Years in PrisonRead the Press Release
WASHINGTON – Michael Otis-Currie, 27, of Adelanto, California, was sentenced today in U.S. District Court to 121 months in prison and 10 years of supervised release for accessing and viewing child pornography, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne A. Jacobs, of the Washington Field Office’s Criminal and Cyber Division, and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Otis-Currie pleaded guilty on September 11, 2022. According to court documents, on October 1, 2020, an undercover law enforcement officer (“UC”) entered the “you.ngshare” KIK group, a group that was designed for members to discuss the sexual abuse of children, and to trade child pornography. The UC continued to monitor activity in the group over the next several days. Between October 1, 2020 and November 17, 2020, approximately 400 users joined the “you.ngshare” group. On October 18, 2020, a user later identified as the defendant posted a link to the group that contained approximately 2,250 image and video files depicting the sexual abuse of children. Many of these videos depicted the rape and physical torture of several young children. The folder shared by the defendant also contained a subfolder entitled “Incest,” which contained approximately 250 additional videos and images depicting child erotica and child pornography.
Otis-Currie was previously convicted in California in 2019 of possession or control of child pornography and was on supervised probation when he committed the instant offense. A law enforcement search of the defendant’s phone revealed additional saved video and image files depicting the sexual abuse of children. The defendant admitted that he was a member of different online groups in which child pornography was discussed and shared.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This investigation also received valuable assistance from Los Angeles Field Office – Victorville Resident Agency. It was prosecuted by Assistant U.S. Attorney Janani Iyengar and Assistant U.S. Attorney Rachel Forman, of the Child Exploitation and Human Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.
Prisoner Caught Hiding Contraband Knives Sentenced to 10+ YearsRead the Press Release
ATHENS, Ga. – An Athens resident with a lengthy and violent criminal history was sentenced to serve more than ten years in federal prison for illegally possessing a gun, hiding homemade shanks while in federal detention and violating the terms of his supervised release.
Michael Anthony Randall, 33, of Athens, was sentenced to a total of 129 months in prison to be followed by three years of supervised release by U.S. District Judge Tilman E. “Tripp” Self III on Sept. 7.: Randall was sentenced to serve 105 months in prison after he pleaded guilty to one count of possession of a firearm by a convicted felon in Case No. 3:22-cr-00023; he was sentenced to serve 60 months in prison concurrent after he pleaded guilty to one count of possession of contraband while in jail in Case No. 3:22-cr-28; and he was sentenced to serve 24 months in prison consecutive for violating his supervised release for a total of 129 months imprisonment. Randall is not eligible for parole.
“The penalty is steep for prisoners caught with contraband weapons and violent repeat offenders who illegally possess guns. In this case, Michael Randall violated both and is now held accountable with additional prison time,” said U.S. Attorney Peter D. Leary. “In collaboration with our law enforcement partners, our office will seek federal prosecution against the most dangerous and repeat criminals in our communities.”
“Michael Randall is the definition of a repeat offender,” said Supervisory Senior Resident Agent of FBI Atlanta’s Macon office. “The FBI will continue to work with our law enforcement partners to keep dangerous criminals like Randall off Georgia streets.”
According to court documents, Randall was indicted for possession of a firearm by a convicted felon on Oct. 11, 2022, in the Middle District of Georgia, after he was arrested for illegally possessing a .380 pistol in Athens, on Jan. 12, 2021. Randall has multiple prior state felony convictions in North Carolina and Georgia, including assault with serious bodily injury and drug convictions. Randall was also previously convicted in the Middle District of Georgia for possession of a firearm by a convicted felon. It is illegal for a convicted felon to possess a firearm.
On Nov. 8, 2022, while in custody awaiting his initial appearance in federal court, Butts County Jail officers found a shank—a handmade knife—hidden on Randall’s person. Officers found another shank on Randall on Nov. 10, prior to his federal court appearance. On Dec. 16, Randall was found with another shank inside the Butts County Jail.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by FBI, the U.S. Marshals Service, the Athens-Clarke County Police Department and the Butts County Sheriff’s Department.
Assistant U.S. Attorney Tamara Jarrett prosecuted the case for the Government.
Prior Sex Offender Pleads Guilty to New ChargesRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Benjamin Crout, 39, of Bath, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to possession of child pornography by an individual with a prior sex offense, which carries a mandatory minimum penalty of 10 years in prison and a maximum of 20 years.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that in August 2004, Crout was convicted in Steuben County Court of Possessing Sexual Performance by a Child Less than 16 and Attempted Sexual Abuse in the 1st Degree. In June 2022, law enforcement received a cybertip from the National Center for Missing and Exploited Children, that an individual uploaded six files containing child pornography to a Google Drive account. Investigators tracked the IP address to Crout’s residence. On January 26, 2023, a search warrant was executed at Crout’s residence during which a tablet and cell phone containing images of child pornography were seized. The devices collectively contained 1,323 images and 47 videos of child pornography, some of which included infants/toddlers engaged in sexually explicit conduct and depictions of violence.
The plea is the result of an investigation by the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia and the New York State Police, under the direction of Major Eugene Staniszewski.
Sentencing is scheduled for January 4, 2024, before Judge Siragusa.
Pontotoc County Resident Pleads Guilty to Assault and Explosives OffensesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that William Craig Hollars, age 44, of Pontotoc County, Oklahoma, entered a guilty plea to five charges relating to a prolonged assault that ended at the Chickasaw Nation Treasury Building in September of 2022.
The Indictment filed on June 14, 2023, charged Hollars with one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, one count of Assault of a Dating Partner in Indian Country, one count of Attempt to Damage and Destroy by Explosive, one count of Making of a Firearm in Violation of the National Firearms Act, and one count of Carry Explosive During the Commission of a Felony.
The charges arose from an investigation by the Chickasaw Nation Lighthorse Police Department, the Oklahoma Highway Patrol Bomb Squad, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
At the plea hearing, Hollars admitted that on September 6, 2022, he strangled the victim, threatened her with a homemade bomb, chased her as she fled to the Chickasaw Nation Treasury Building, struck her in the back of the head, dragged her from the building as she sought shelter, then attempted to light the bomb in order to injure her and cause damage to the Treasury Building.
The crimes occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea, and ordered the completion of a presentence investigation report. Hollars will remain in the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Kevin Gross represented the United States.
New Orleans Man Sentenced on Drug and Weapons ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – KENDALL THEARD, age 26, a resident of Orleans Parish, was sentenced on October 6, 2023 by U.S. District Judge Jane Triche Milazzo to time served, 3 years of supervised release, and a $100 mandatory special assessment fee after previously pleading guilty to possession with intent to distribute a controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and (b)(1)(D), announced U.S. Attorney Duane A. Evans.
On July 29, 2021, New Orleans Police Officers stopped a vehicle containing three individuals, including THEARD. During this stop, THEARD fled the vehicle but was later apprehended by officers. Upon a search of the vehicle, officers discovered illegal drugs and weapons, including a machine gun.
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.
U. S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Louisiana State Police, and the New Orleans Police Department. The case was prosecuted by Assistant U. S. Attorney Inga Petrovich of the Violent Crime Unit .
Monroeville Man who Shot at Police Receives Statutory Maximum Sentence of 10 Years in Federal PrisonRead the Press Release
MOBILE, AL – A Monroeville man received a statutory maximum sentence of 120 months in prison for illegally possessing a firearm that he used to shoot a 15-year-old victim and fire at police.
According to court documents and evidence presented at his sentencing hearing, Broderick Tramaine Young, 33, used a 5.56mm caliber rifle to shoot through the front of a house in Monroeville, striking a 15-year-old victim in the abdomen. The incident occurred on February 24, 2022. The shooting victim called 911 to report his injury, at which time several Monroeville police officers rapidly responded to the scene. The victim suffered life-threatening injuries that required a helicopter transport to a hospital for surgery and extensive inpatient trauma intervention.
Immediately as several officers drove up to the scene, Young began firing shots from the rifle in their direction, shattering the windows of multiple patrol vehicles. The officers took cover behind several vehicles before returning fire at Young, who was not injured during the incident. Shards of glass lodged into one of the officers’ hands, and debris from the gunfire lodged into another officer’s neck and right eye, causing bleeding and injuries that required medical treatment. Young’s gunfire also tore through and damaged nearby houses, several of which were occupied. The shooting occurred a short distance from an elementary school.
After Young’s shooting ceased, police quickly took him into custody and seized his rifle, which was equipped with an empty 30-round magazine. Young admitted that at the time he possessed and fired the rifle, he knew he had previously been committed to a mental institution and was subject to a protection-from-abuse order in a state domestic-violence case in Florida. Those prior adjudications rendered Young’s possession of the rifle illegal under federal law.
In addition to the 10-year prison sentence, United States District Judge Kristi K. DuBose ordered Young to serve a three-year term of supervised release upon his release from prison, during which time he will receive treatment for substance abuse and mental health. The court did not impose a fine, but Judge DuBose ordered Young to pay $200 in special assessments.
Young faces several pending charges in the Monroe County Circuit Court stemming from this incident, including attempted murder and shooting a firearm into an occupied building. He is presumed innocent in that case until proven guilty beyond a reasonable doubt in a court of law.U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Federal Bureau of Investigation, the Alabama State Bureau of Investigation, and the Monroeville Police Department investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.Midland Woman Sentenced for More Than $1.2 Million of Wire and Tax FraudRead the Press Release
MIDLAND, Texas – A Midland woman was sentenced in a federal court in Midland on Friday to 30 months in prison and ordered to pay $1,251,416.67 in restitution for wire fraud and filing a false tax return.
According to court documents, while working as a secretary for Bridges Equipment, LTD, Tamara Dawn Allen, 49, fraudulently cashed her employer’s checks using the owner’s signature stamp and made electronic payments to her personal bank accounts from company accounts. The scheme amounted to a total loss of at least $868,770.60. Additionally, Allen underreported her income on her taxes over a four-year span, for a total amount of $553,390.00.
Allen pleaded guilty to counts one and 24 of a 31-count superseding indictment on May 12.
“The fraud perpetrated by this defendant, a long-time employee at a family-owned business, resulted in substantial losses and destroyed relationships,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I appreciate the work of our partners for investigating this case. Just as with violent crime, we will continue to vigorously prosecute all white collar and fraud cases in the Western District of Texas.”
“Ms. Allen took advantage of her position to personally enrich herself at the expense of her employer and their partners,” said Special Agent in Charge Douglas M. Goodwater for the FBI El Paso Field Office. “The victims can have confidence that the defendant will be held accountable for the crimes she committed and sends a message to other fraudsters that their schemes and deception will not be tolerated in our community.”
“Allen spent years stealing from her employer, gaining wealth at everyone else’s expense, including law abiding taxpayers,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s Houston Field Office. “The special agents and prosecutors rigorously documented every deceptive transaction, ensuring that the case against her was irrefutable. As experts in financial crimes, CI regularly partners with other law enforcement agencies to help ensure justice is served.”
The FBI and CI investigated the case.
Assistant U.S. Attorney Joe Mahoney prosecuted the case.
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Michigan Marijuana Dispensary Owner Convicted of Tax Evasion and Obstructing the IRSRead the Press Release
A federal jury in Detroit found a Michigan man guilty of evading federal income taxes and obstructing the IRS, among other charges.
According to court documents and evidence presented at trial, Ryan Richmond, of Bloomfield, owned and operated the marijuana dispensary Relief Choices, LLC in Warren, Michigan. From 2011 through at least 2014, Richmond had Relief Choices pay its operating expenses extensively in cash, and routed customer credit card payments through an unrelated third-party bank account to conceal his true business gross receipts. In 2015 and 2016, Richmond obstructed the IRS by misleading investigators – and particularly an IRS auditor examining his individual income taxes – about his knowledge of, role in and profits derived from his Relief Choices operation. Richmond caused a tax loss to the IRS of more than $1.15 million.
Richmond is scheduled to be sentenced on Dec. 13 and faces a statutory maximum penalty of five years in prison for each count of tax evasion, three years in prison for obstructing the IRS and one year in prison for the willful failure to file a tax return count. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Mark McDonald and Christopher P. O’Donnell of the Tax Division are prosecuting the case.
Maryland U.S. Attorney's Office Launches Somber PSA on Impacts of Gun ViolenceRead the Press Release
Baltimore, Maryland – On Sunday, September 10, Maryland U.S. Attorney Erek L. Barron launched a cutting edge 60 second public service announcement encouraging viewers to take action to end gun violence. The video aired across Maryland just before kickoff of the Baltimore Ravens home opener, and will continue to broadcast across cable and digital platforms.
"Gun violence impacts more than one person or one family. Friends, parents, employers, neighbors – all are forced to confront the devastating realities of gun violence," said Maryland U.S. Attorney Erek L. Barron. "We are bringing together law enforcement, community organizations, and private citizens in pursuit of a common goal: protecting the places we call home.”
As a result of collaborative efforts between law enforcement and community-based organizations, violent crime is down throughout Maryland. But, more must be done. Project Safe Neighborhoods balances prevention, intervention, strategic law enforcement, and community engagement to end gun violence and keep communities safe.
“The Baltimore Police Department along with our many law enforcement partners are committed to ending gun violence and breaking the cycle of trauma it brings to our communities,” said Acting Police Commissioner Richard J. Worley. “Our residents and neighborhoods deserve better and our agency remains steadfast in implementing Community Policing strategies and working collaboratively with our communities to create a safer Baltimore for all.”
The U.S. Attorney's Office works closely with community-based organizations throughout Maryland, including Roca, a nonprofit working to intervene with the young men most likely to shoot or be shot and develop partnerships and programs that have proven effective in curbing violence at the core of communities.
"We have seen that we can lessen urban violence by relentlessly finding and engaging the young people living at the center of it," said Kurtis Palermo, Executive Vice President of Roca Maryland. "Young men can change—and our communities can heal—if we help them address the trauma that is at the root of violence and provide the skills and support they need to learn to think and act differently."
No one should live in fear in their own home or neighborhood. This video encourages communities to get involved in ending gun violence.
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/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
# # #Madison Man’s “Ticket Switching” Scam Leads to Guilty Plea to Wire Fraud, Attempted Wire FraudRead the Press Release
BANGOR, Maine: A Madison man pleaded guilty in U.S. District Court in Bangor today to wire fraud and attempted wire fraud.
According to court records, from June 2021 to April 2023, Aaron Hoster, 51, removed UPC labels from low-cost items and applied them to higher-priced items which he then purchased. Hoster defrauded multiple Home Depot and Lowe’s Home Improvement stores in Maine, cheating the retailers out of more than $51,000. In one instance, Hoster purchased a $439 cordless finish nailer kit, paying just $19.98 by scanning a price code for trimmer line. In another example, he scanned a code for an $11.36 chrome-plated plastic tailpiece despite purchasing a powered drain cleaner valued at $429.
Hoster faces up to 20 years in prison and a fine of up to $250,000. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Homeland Security Investigations (HSI) investigated these cases.
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Lewiston Man Going to Prison on Meth ChargeRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Treshon Alexander, 30, of Lewiston, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to possession with intent to distribute 400 grams of more of fentanyl, which carries a minimum penalty of 15 years in prison, a maximum of life in prison, and a fine of up to $20,000,000.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that in February 2015, Alexander was convicted on federal charges of conspiracy to manufacture, possess with intent to distribute, and distribute 280 grams or more of crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime. Alexander was sentenced to serve 108 months in prison and five years’ supervised release. On February 16, 2023, while on supervised release, Alexander was arrested at his Apollo Drive residence in Greece, when members of the U.S. Probation Office conducted a search there and at a Chippendale Road residence, which Alexander used to store narcotics. During the searches, investigators seized $6,654.00 in U.S. currency, multiple cell phones, materials for processing and packaging narcotics for distribution, over 2000 rounds of ammunition, a money counter, and vacuum sealer. In addition, approximately 1,394 grams of fentanyl and 504 grams of cocaine were also seized.
The plea was the culmination of an investigation by the U.S. Probation Office, under the direction of Chief Probation Officer Timothy Englert, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito. Additional assistance was provided by the New York State Attorney General’s Office, under the direction of Attorney General Letitia James.
Sentencing is scheduled for January 10, 2024, before Judge Geraci.
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Le Roy, Illinois, Man Sentenced to 30 Months for Theft of Medical Products and Possession of a Controlled Substance with Intent to DistributeRead the Press Release
SPRINGFIELD, Ill. – A Le Roy, Illinois, man, Issac Jackson, 29, was sentenced on September 7, 2023, to 30 months in federal prison for theft of medical products and possession of a controlled substance with intent to distribute.
According to court documents, while employed as a pharmacy technician, Jackson stole hydrocodone, alprazolam, and promethazine with codeine before selling it illegally. At the sentencing hearing, U.S. District Judge Colleen R. Lawless found that Jackson was responsible for diverting over 28,000 hydrocodone pills from the medical chain of supply to the illicit drug market.
Jackson was indicted in October 2021 and pleaded guilty in November 2022.
The statutory penalties for theft of medical products are up to 15 years’ imprisonment, up to a $250,000 fine, and up to three years of supervised release. The statutory penalties for possession of a controlled substance with intent to distribute are up to 20 years’ imprisonment, up to a $1,000,000 fine, and up to a life term of supervised release.
The United States Drug Enforcement Administration Diversion Unit, which focuses on cases involving pharmaceutical controlled substances diverted from the legal chain of commerce to the illegal drug market, investigated this case in conjunction with the Illinois State Police, Southcentral Drug Task Force, the Montgomery County Sheriff’s Office, the Carlinville Police Department, and the Illinois Department of Financial and Professional Regulation Pharmacy Division. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
Laredo woman arrested for impersonating a nurseRead the Press Release
LAREDO – A 35-year-old Laredo resident has been charged for making false statements related to health care matters and aggravated identity theft, announced U.S. Attorney Alamdar S. Hamdani.
Law enforcement took Nora Nely Avila into custody today. She is expected to make her initial appearance before U.S. Magistrate Judge Diana Song Quiroga tomorrow morning.
The three-count indictment, returned Sept. 6, alleges Avila impersonated a nurse from January 2017 through December 2019 and performed work she was not qualified to do at multiple home health companies in the Laredo area.
The patients and health care providers were part of the federally-funded Medicaid and Medicare programs, according to the charges. Avila is also alleged to have obtained employment as nurse trainer in the federally-funded Job Corps program and was assigned to train future nurses.
If convicted, Avila faces up to five years in federal prison as well as a possible $250,000 maximum fine for each of the false statements charges. She faces an additional two years in prison for aggravated identity theft which must be served consecutively to any other prison term imposed.
The FBI, Department of Health and Human Services – Office of the Inspector General (OIG), Department of Labor – OIG, Homeland Security Investigations and the Texas Attorney General’s Medicaid Fraud Control conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Kenai Man Sentenced for Failing to Re-register as a Sex OffenderRead the Press Release
ANCHORAGE, Alaska – A Kenai man was sentenced on Aug. 31, 2023, to 20 months in prison and seven years’ supervised release for not registering as a sex offender after moving to Alaska from Oregon.
According to court documents, Wayne Hinze, 65, was convicted of two counts of rape 1, six counts of sexual abuse 1 and three counts of attempted sodomy 1 in the state of Oregon in 1999. The defendant was sentenced to 14 and a half years in prison and five years’ probation. Hinze registered as a sex offender as part of his sentence and was advised that he must register in his new state of residence if he moved away from Oregon.
The defendant was released from prison in 2014 and was registered as a sex offender in Oregon at that time. In 2017, he absconded from parole and law enforcement could not locate him.
Hinze was located in Kenai, Alaska, and was arrested October 2022. Law enforcement learned he moved to the state in March 2018 and never registered or attempted to register as a sex offender in Alaska. The last time he registered as a sex offender was June 2017 in Oregon.
“Mr. Hinze’s manifest failure to register as a sex offender in the state of Alaska put our children at risk and will not be tolerated,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The U.S. Attorney’s Office will continue to work with the U.S. Marshals Service and local law enforcement to ensure communities are aware of sex offenders in their villages and neighborhoods. Maintaining this registry is paramount to keeping children safe.”
“The Sex Offender Task Force, which includes the U.S. Marshals Service, Anchorage Police Department, and the Alaska Wildlife Troopers, is committed to enhancing the protection of the public from unregistered sex offenders throughout the state of Alaska. Wayne Hinze posed a clear danger to the safety of community members who were unsuspecting of his prior convictions and actions. This is a case where the task force partnered with the Kenai Police Department and the U.S. Attorney’s Office to ensure the enforcement of the laws governing the Sex Offender Registry and the Adam Walsh Act,” said Rochelle Liedike, Deputy U.S. Marshal, District Sex Offender Investigations Coordinator for the U.S. Marshals Service.
The U.S. Marshals Service, with assistance from the Kenai Police Department, investigated the case.
Assistant U.S. Attorney Jennifer Ivers prosecuted the case.
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KC Man Sentenced for Meth Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine and for illegally possessing a firearm.
Richard A. Bloodsoe, 43, was sentenced by U.S. District Judge Greg Kays to 13 years in federal prison without parole.
On March 16, 2023, Bloodsoe pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Bloodsoe admitted that he conspired with others to distribute methamphetamine from July 8, 2021, to Sept. 20, 2022. He sold cocaine and methamphetamine to an undercover law enforcement agent on four occasions in July and August 2021. On Sept. 17, 2021, Bloodsoe sold an undercover agent a Jimenez Arms .380-caliber pistol.
On Dec. 14, 2021, agents saw Bloodsoe conducting drug transactions from his Cadillac DTS. Bloodsoe fled on foot from the agents, who searched his vehicle and found a backpack that contained a loaded Taurus 9mm handgun, 14 glass vials of PCP, a small apple juice bottle that contained PCP, a bag that contained approximately 21.09 grams of pure methamphetamine, a bag that contained approximately 51.9 grams of cocaine, a bag that contained approximately 48.4 grams of cocaine, and pills suspected to contain hydrocodone and methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Byron H. Black. 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’s National Security Division Announces Key Corporate Enforcement AppointmentsRead the Press Release
The Justice Department’s National Security Division announced today that it has made key appointments to lead the Division’s corporate enforcement program. Ian C. Richardson has been named the first Chief Counsel for Corporate Enforcement, and Christian J. Nauvel has been named as Deputy Chief Counsel for Corporate Enforcement. Both attorneys will coordinate and oversee the Division’s investigation and prosecution of corporate crime relating to the national security of the United States.
“In an era of renewed nation-state competition, corporations are on the front lines of the fight to defend our national security,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We have watched with concern as investigations of corporate misconduct increasingly reveal violations of laws that protect the United States. Enforcing the laws that deny our adversaries the benefits of America’s innovation economy and protect technologies that will define the future is core to the National Security Division’s mission.”
Previously, Richardson served as an Assistant U.S. Attorney for the Eastern District of New York. As a prosecutor, he led key corporate enforcement and national security prosecutions. In U.S. v. Lafarge SA, Richardson obtained the Department’s first corporate conviction for providing material support to foreign terrorist organizations. In U.S. v. Ticketmaster LLC, he resolved a corporate computer intrusion investigation in which the company admitted obtaining unauthorized access to a competitor’s computers. Recently, in Operation Medusa, Richardson obtained the court order that authorized an FBI-led computer network operation to remotely neutralize malware used by Russia for long-term cyber-espionage.
Prior to joining the National Security Division, Nauvel served as Senior Counsel to the Assistant Attorney General for the Criminal Division. Previously, he was a Trial Attorney in the Criminal Division’s Money Laundering and Asset Recovery Section and with the National Cryptocurrency Enforcement Team (NCET). Nauvel served as a lead prosecutor in U.S. v. Huawei, which charged the defendants with racketeering, sanctions violations and theft of trade secrets. He has investigated and prosecuted financial institutions, including in U.S. v. Bank Julius Baer, as part of the FIFA corruption scheme. He has also conducted sensitive cryptocurrency cases within the NCET.
In announcing the establishment of these positions in March, Deputy Attorney General Lisa Monaco also announced that the National Security Division would add more than 25 prosecutors to investigate and prosecute sanctions evasion, export control violations and similar economic crimes.
Jessamine County Man Sentenced to 262 Months for Armed Drug TraffickingRead the Press Release
LEXINGTON, Ky. — A Nicholasville, Ky., man, Stephen Lancaster, 31, was sentenced to 262 months in federal prison on Monday, by Chief U.S. District Judge Danny Reeves, for possession with intent to distribute 10 grams or more of a fentanyl analogue, possession with intent to distribute 40 grams or more of fentanyl, possession with intent to distribute 50 grams or more of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.
According to his guilty plea agreement, on April 14, 2022, deputies with the Jessamine County Sheriff’s Office conducted a traffic stop on a vehicle in which Lancaster was a passenger. Lancaster admitted to law enforcement that he had a large amount of narcotics and a firearm in the vehicle. During the search of the vehicle, deputies located 23 grams of fluorofentanyl, a fentanyl analogue, 332 grams of fentanyl, 54 grams of pure methamphetamine, and 236 grams of multicolored pills containing methamphetamine. Deputies also found a loaded AR-style pistol under the passenger seat, and a drum magazine. Lancaster admitted that he possessed the drugs with the intent to distribute them, and he possessed the firearm in furtherance of drug trafficking.
Under federal law, Lancaster must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, Drug Enforcement Administration (DEA), Louisville Field Office; and Kevin Grimes, Jessamine County Sheriff, jointly announced the sentence.
The investigation was conducted by DEA and the Jessamine County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.
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Iowa Air National Guardsman Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
A Guardsman for the Iowa Air Guard’s 185th Refueling Wing who possessed over 1,400 images of child sexual abuse material was sentenced today, September 11, 2023, to three years in federal prison.
Kevin Swanson, age 35, from Sioux City, Iowa, received the prison term after he plead guilty in federal court on May 4, 2023, to Possession of Child Pornography.
Evidence at today’s hearing established that between August 2020, and August 2021, he used an Internet-based, peer-to-peer (P2P) network to knowingly share and receive visual depictions of minors engaged in sexually explicit conduct, including depictions involving prepubescent minors who had not reached the age of 12.
Swanson was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Swanson was sentenced to 36 months’ imprisonment and a total of $10,000 in fines. Swanson must also serve a five-year term of supervised release after the prison term and register as a sex offender. There is no parole in the federal system.
Swanson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was prosecuted by Assistant United States Attorney Kraig R. Hamit and investigated by Homeland Security Investigations, the Sioux City Police Department, and the Nebraska State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4080.
Follow us on Twitter @USAO_NDIA.
Inmate and Three Co-defendants Convicted in $25 Million COVID-19 Relief FraudRead the Press Release
FRESNO, Calif. — Telvin Breaux, 32, an inmate at the California Correctional Institution in Tehachapi, pleaded guilty today to conspiracy and aggravated identity theft charges for leading a $25 million fraud against the California Employment Development Department (EDD) during the COVID-19 pandemic. Three of Breaux’s co-defendants, Fantasia Brown, 35, of Los Angeles; Shanice White, 29, of Hawthorne; and Holly White, 33, of Los Angeles; also pleaded guilty for their roles in the fraud. U.S. Attorney Phillip A. Talbert made the announcement.
According to court documents, Breaux and his co-defendants obtained the personally identifiable information (PII) for other inmates, non-inmates, and minor children. Many of the non-inmates were patients or customers at hospitals, dentists’ offices, and other businesses where one of the co-defendants worked or had a point of contact. The minor children were the defendants’ own children or part of their networks of family and friends.
Breaux and his co-defendants used the stolen PII to submit fraudulent unemployment insurance claims online to EDD in these other individuals’ identities. The claims contained several misrepresentations, including that the other individuals became unemployed because of the COVID-19 pandemic and were available to work. Breaux was the ringleader of the scheme. He collected the identities used for the fraudulent claims, managed the submission of the claims, and controlled the distribution of the proceeds. Breaux kept track of everything in ledgers that were seized from his prison cell.
Fantasia Brown and Shanice White collected and distributed some of the proceeds according to Breaux’s instructions. For example, in one instance Breaux asked Brown to open another safe deposit box for him because he was only keeping $200,000 in each box. Brown agreed to do so and said that she had collected so much money for Breaux that she was one of his accountants. In another instance, Shanice White told Breaux that she needed a cash counting machine because her hands were hurting from counting so much money. Breaux replied that he was expecting another $120,000 that week. Investigators found pictures of cash proceeds and a cash counting machine on cellphones during the investigation.
Pictures of Proceeds and Cash Counting Machine Found on Cellphones
Holly White created email addresses that were used for fraudulent claims in the identities of hospital patients. Breaux obtained the identities from another co-defendant whose friend worked at the hospital.
As a result of the conspiracy, over 400 fraudulent claims were submitted to EDD and the United States. The total value of the claims, if all were approved and fully paid out, was nearly $25 million. Of these claims, over 290 were actually approved and $5.4 million was paid out. The EDD, however, froze some of that money before it could be spent.
The defendants used the proceeds to benefit themselves, family members, and friends. Their purchases included rent, luxury vehicles, trips to Las Vegas, jewelry, designer handbags, high-end furniture, and tuition.
Breaux and Brown are scheduled to be sentenced on March 18, 2024. Shanice White is scheduled to be sentenced on Dec. 18, 2023, and Holly White is scheduled to be sentenced on Jan. 16, 2024. Each of them faces maximum statutory penalties of 22 years in prison and fines of up to $250,000. Their actual sentences, 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 several variables.
Daryol Richmond, 32, who was an inmate at the Kern Valley State Prison in Delano, was previously convicted for his involvement in the fraud. He was sentenced to over five years in prison in December 2022.
The remaining defendants in the case are Cecelia Allen, 35, of Downey; Tonisha Brown, 30, of Los Angeles; and Fantesia Davis, 34, of Victorville. Their next court date is Sept. 18, 2023. The charges against the remaining defendants are only allegations. They are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation, EDD, and the U.S. Department of Labor Office of Inspector General. Assistant United States Attorney Joseph Barton is prosecuting the case.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Illinois Family Members Plead Guilty to Kidnapping, Forced Labor and Conspiracy for Coercing Two Minors and a Third Victim in Years-Long Forced Labor SchemeRead the Press Release
WASHINGTON – Lorenza Domingo-Castaneda, 34, a Guatemalan national, pleaded guilty on September 8, 2023, in the Central District of Illinois to three counts of forced labor and two counts of conspiracy to commit forced labor. On August 18, codefendant Catarina Domingo-Juan, 37, also pleaded guilty to three counts of forced labor and two counts of conspiracy to commit forced labor. A third codefendant, Domingo Francisco-Juan, 43, previously pleaded guilty on August 30 to forced labor, conspricy to commit forced labor, kidnapping and conspiracy to commit kidnapping.
According to court documents, the defendants, who are siblings, conspired to bring two minor victims from Guatemala to the United States to work in their homes between December 2015 and March 2021. The defendants compelled the victims to provide domestic services within the homes and to work outside the homes at local hotels and factories. The defendants used false promises of a better life and an education to gain the permission of the victims’ mothers for their minor daughters to travel to the United States to live with the defendants. Domingo-Castaneda and Domingo-Juan also compelled a third victim to work in their homes and outside their homes at local businesses. The defendants isolated the victims in their homes, restricted their communications with their family in Guatemala and subjected them to physical, verbal and psychological abuse, among other coercive means.
“Human trafficking—particularly compelling the labor and services of unaccompanied minors—cannot be tolerated. Traffickers deftly use the promise of America to lure adults and children into the United States from thousands of miles away, only to then turn around and reveal their promises were false as part of a coercive scheme to compel their labor,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains steadfast in identifying and prosecuting human traffickers who exploit vulnerable victims for their own financial benefit.”
“Human trafficking is a scourge that affects not only far-flung locales but our local communities as well,” said U.S. Attorney Gregory K. Harris for the Central District of Illinois. “Traffickers prey on vulnerable victims – including children – bringing them to the United States and entangling them in forced labor schemes. The Central District of Illinois is committed to prosecuting these crimes and further asks community members who are aware of any signs of such exploitation to pass that information on to law enforcement.”
“Labor traffickers only care about one thing — money,” said Homeland Security Investigations (HSI) Chicago Special Agent in Charge Sean Fitzgerald. “Those subjected to domestic servitude are robbed of their dignity and freedom. Thankfully, these victims were rescued thanks to the efforts of law enforcement. Apprehending labor and human traffickers who take advantage of our most vulnerable and rescuing those exploited will always be a top priority for HSI.”
In accordance with the plea agreements, the defendants face penalties of 20 years up to life in prison as well as mandatory restitution. A federal district court judge will determine any penalty after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI with the assistance of the Champaign Police Department, Champaign County Sheriff’s Office, U.S. Marshals Service and Champaign County State’s Attorney’s Office investigated this case.
Assistant U.S. Attorney Bryan Freres for the Central District of Illinois and Trial Attorney Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Huntington Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Valerie June Damron, 62, of Huntington, pleaded guilty today to distribution of a quantity of a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on October 11, 2022, Damron sold approximately 1 ounce of methamphetamine to a confidential informant at her Seventh Avenue residence. Damron admitted to that transaction and to selling quantities of methamphetamine totaling approximately 69 grams on three occasions between October 14 and October 19, 2022. Damron further admitted that the quantities of fentanyl were mixed in with the methamphetamine sold in two of those additional transactions.
On October 20, 2022, law enforcement officers executed a search warrant at Damron’s residence and seized approximately 122 grams of methamphetamine, 20.5 grams of fentanyl and multiple firearms including a Davis Industries .22-caliber pistol, a Smith & Wesson 9mm pistol, and a FT 9mm pistol. Damron admitted that she intended to distribute the controlled substances.
On February 2, 2023, investigators arrested Damron at her residence and seized approximately 211 grams of methamphetamine, 3.5 grams of fentanyl and a Kel-Tex .380-caliber pistol. Damron told the investigators that she had been previously supplied with 2 to 3 pounds of methamphetamine on multiple occasions by another individual.
Damron is scheduled to be sentenced on December 18, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-19.
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Hudson County Real Estate Investor Sentenced to Two Years in Prison for Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, real estate investor was sentenced today to 24 months in prison for conspiring to orchestrate a fraudulent home equity line of credit scheme that led to over $400,000 in losses, U.S. Attorney Philip R. Sellinger announced today.
Anthony Garvin, 53, of Jersey City, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to one count of conspiracy to commit bank fraud and four counts of bank fraud. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between 2011 and 2014, Garvin orchestrated a scheme to defraud banks by conspiring with others to fraudulently obtain multiple home equity lines of credit, known as HELOCs, on real estate that Garvin owned. To hide his fraud from lenders, Garvin and his conspirators prepared and submitted loan applications that contained lies and fake supporting documents, including fake pay stubs, W-2 forms, tax returns, bank account statements, and deeds. Garvin split his fraud proceeds with his conspirators and defaulted on all of the loans. Garvin’s scheme ultimately resulted in over $400,000 in loses to the lenders.
In addition to the prison term, Judge Hayden sentenced Garvin to three years of supervised release.
Two conspirators previously pleaded guilty and are awaiting sentencing.
U.S. Attorney Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Blake Coppotelli and Anthony Torntore of the District of New Jersey.
Houma Man Indicted for Trafficking Fentanyl and HeroinRead the Press Release
NEW ORLEANS, LOUISIANA – ROBERT LEE ALLEN, age 35, a resident of Houma Louisiana, was charged today in a one-count indictment by a federal grand jury, announced U.S. Attorney Duane A. Evans.
Count 1 of the indictment alleges that ALLEN possessed with the intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin on March 20, 2023, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B). For this offense, he faces a statutory mandatory minimum sentence of five years, up to forty years imprisonment, a fine of up to $5,000,000, at least four years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by Homeland Security Investigations (HSI), the Houma Police Department, Terrebonne Parish Sheriff’s Office, and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.