Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
19 October 2023
Bronx Man Pleads Guilty to Distribution of Fentanyl in Connection with Death of 19-Year-Old Victim and Sex Trafficking of A MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that VIRGIL WARDLOW pled guilty today to one count of distributing fentanyl. In connection with his guilty plea, WARDLOW stipulated that he paid for commercial sex with a minor using fentanyl-laced pills that caused the death of a 19-year-old victim. WARDLOW pled guilty before U.S. District Judge Mary Kay Vyskocil and is scheduled to be sentenced on March 13, 2024.
U.S. Attorney Damian Williams said: “The consequences of the defendant’s conduct are heart-wrenching: The defendant paid for sex with a 16-year-old victim using fentanyl-laced pills, which the victim’s 19-year-old friend then ingested, poisoning her and causing her death. Today’s guilty plea demonstrates that this Office will seek justice for families facing the horrific tragedy of losing a loved one to fentanyl poisoning and for victims of child sexual exploitation.”
According to court filings and statements made in court proceedings:
WARDLOW engaged in a pattern of paying for commercial sex with black market pills that contained fentanyl. On or about March 25, 2023, at a hotel room in the Bronx, New York, WARDLOW provided two of those pills to a 16-year-old female (“Victim-1”) in exchange for sex with Victim-1. After Victim-1 had sex with WARDLOW and WARDLOW left the hotel room, Victim-1 and her 19-year-old female friend (“Victim-2”) ingested the pills provided by WARDLOW. Thereafter, Victim-1 became ill, and Victim-2 became unconscious and died of a drug poisoning.
Between at least on or about February 8, 2023, and on or about April 7, 2023, WARDLOW exchanged several messages with other individuals in which WARDLOW offered to provide pills in exchange for sex or money. WARDLOW sent these messages using an anonymized cellphone number that masked his identity from his intended victims.
* * *
WARDLOW, 31, of the Bronx, New York, pled guilty to distribution and possession with intent to distribute mixtures and substances containing a detectable amount of fentanyl and oxycodone, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the New York State Police, the New York City Police Department, and Special Agents from the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit and Narcotics Unit. Assistant U.S. Attorney Jeffrey W. Coyle is in charge of the prosecution.
Baton Rouge Man Pleads Guilty in Federal Court to Drug and Gun ChargesRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Mitchell Robinson, Jr., age 33, of Baton Rouge, Louisiana, pled guilty before U.S. Chief Judge Shelly D. Dick to possession with intent to distribute 50 grams or more of methamphetamine, 40 grams or more of fentanyl, heroin, and tramadol, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon.
According to admissions made during his plea, on May 11, 2022, EBRSO deputies executed a “knock” search warrant at Robinson’s residence in Baton Rouge, Louisiana. In the kitchen, deputies found 2.17 grams of fentanyl, 218.3 grams of methamphetamine, 22.89 grams of methamphetamine, 56 suboxone 8mg/2mg prescription strips, manitol (narcotics cutting agent), 390 tramadol pills, a digital scale, a Glock, model 17, 9mm handgun modified to be fully automatic, a Glock style 9mm handgun, a Glock style 30 round magazine, 9mm ammunition, and 4.01 pounds of marijuana. In the attic, deputies found 884.1 grams of methamphetamine, 439.7 grams of methamphetamine, 194.46 grams of fentanyl, 3.12 pounds of marijuana, $25,960.00, and 55.59 grams of heroin.
Prior to Robinson’s possession of the Glock, model 17, 9mm handgun, he had been convicted of simple burglary and carnal knowledge of a juvenile in September 2010 in East Baton Rouge Parish, and burglary of a dwelling and aggravated burglary in January 2011 in Ascension Parish.
This matter was investigated by the Drug Enforcement Administration and East Baton Rouge Parish Sheriff’s Office and is being prosecuted by Assistant United States Attorney Jeremy S. Johnson.
Attorney General Merrick B. Garland Delivers Remarks at the U.S. Attorney's Office for the Southern District of FloridaRead the Press Release
Remarks as Prepared for Delivery
Good afternoon. In just a few minutes, U.S. Attorney Lapointe and I will meet with the law enforcement officers gathered around this table.
I am grateful to each of them for being here, and look forward to our discussion.
At the top of our agenda will be our shared efforts to help keep our communities safe from violent crime.
As always, but especially right now, that includes remaining vigilant in the face of the potential threats of hate-fueled violence and terrorism.
Hamas's terrorist attacks on Israel have created understandable fear among communities across the country.
As the FBI has noted, we are seeing an increase in reported threats against faith communities, particularly Jewish, Muslim, and Arab communities and institutions.
Last week, I directed all 94 of our U.S. Attorneys' Offices and the FBI to be in close touch with our federal, state, and local law enforcement partners in their districts.
Yesterday I met with, and today and tomorrow I will continue to meet with, our U.S. Attorneys and federal, state, and local law enforcement officials here in Florida.
I have also directed our U.S. Attorneys to reach out to religious and other community leaders in their districts to reaffirm our commitment to them and assess what additional support they may need.
Our partnerships with federal, state, and local law enforcement, and with the communities they serve, are at the center of our efforts to keep our country and our communities safe.
That strategy also guides our work to attack every aspect of the trafficking of fentanyl, the deadliest drug threat our country has ever faced.
Earlier this month, we announced charges in the Southern and Middle Districts of Florida against eight chemical companies based in China, and 12 of their executives for crimes related to the production, distribution, and importation of fentanyl, other synthetic opioids, methamphetamines, and their precursor chemicals.
That same day, the Treasury Department imposed sanctions on a set of individuals and entities involved in fentanyl trafficking. That included all of the China-based companies charged here in the Southern District of Florida.
That case is just one example of how we are going after every link in the cartel-driven fentanyl trafficking networks. That includes the cartels' chemical suppliers often based in China, their clandestine lab operators, their security forces, their weapons suppliers, their drug traffickers, and their money launderers.
It also includes the cartels' leaders. Last month, we extradited Ovidio Guzman Lopez, a leader of the Sinaloa Cartel and one of EI Chapo's sons, from Mexico to the United States.
I am proud of the work the extraordinary public servants of this office are doing every single day on multiple fronts - from violent crime, drug trafficking, and human smuggling to hate crimes and the threat of foreign and foreign-incited terrorism acts.
Every day, the dedicated men and women of this Office work to fulfill our mission: to uphold the rule of law, to keep our country safe, and to protect civil rights.
But we cannot do that work without the law enforcement partners in this room today. The entire Department is grateful for that partnership.
I am grateful for that partnership.
We are now going to begin our meeting.
Arrest Made in Central California Bio-Lab InvestigationRead the Press Release
FRESNO, Calif. — Jia Bei Zhu, aka Jesse Zhu, aka Qiang He, aka David He, 62, a citizen of China who formerly resided in Clovis, was arrested today on a criminal complaint for manufacturing and distributing misbranded medical devices in violation of the federal Food, Drug, and Cosmetic Act (FDCA) and for making false statements to the Food and Drug Administration (FDA), U.S. Attorney Phillip A. Talbert announced.
“As part of his scheme, the defendant changed his name, the names of his companies, and their locations,” U.S. Attorney Talbert said. “The disarray at the Reedley lab led to the glare of publicity he was trying to avoid, and the ensuing investigation unraveled his efforts to circumvent the requirements that are designed to ensure that medical devices are safe and effective.”
“Providing materially false information to FDA inspectors regarding medical device manufacturing and distribution impedes the agency’s ability to protect public health, especially when those false statements relate to unauthorized and misbranded COVID-19 tests. Consumers who unknowingly use these misbranded COVID tests run the risk of incorrect results about their COVID status, which can lead to further spread of the virus,” said Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations Los Angeles Field Office. “We will continue to investigate and bring to justice those who jeopardize the health of U.S. consumers.”
According to court documents, between December 2020 and March 2023, Zhu and others manufactured, imported, sold, and distributed hundreds of thousands of COVID-19 test kits, in addition to test kits for HIV, pregnancy, clinical urinalysis, and other conditions in the United States and China. They did so through the companies Universal Meditech Incorporated (UMI) and Prestige Biotech Incorporated (PBI), which were based in Fresno and Reedley. UMI and PBI did not obtain the required authorizations to manufacture and distribute the test kits and mislabeled some of the test kits. When questioned by FDA officials, Zhu made false statements about his identity, his ownership and control of UMI and PBI, and the activities of UMI and PBI.
According to the criminal complaint, Reedley Code Enforcement officials received a complaint regarding a warehouse in Reedley for using non-permitted plumbing that was visible from outside the warehouse. When code enforcement officials went to the warehouse the next day, they saw various types of in vitro diagnostic test kits, related manufacturing equipment, and shipping supplies.
Further investigation found that UMI first registered as a medical device manufacturer with the FDA in November 2015 in Tulare and moved to Fresno in 2018. FDA records show that its registration lapsed in 2022, and it is no longer permitted to manufacture or import any in vitro diagnostic test kits in the United States. Any test kits that the company manufactured or imported after that date are considered misbranded medical devices.
To manufacture, import, and distribute COVID-19 test kits in the United States during the pandemic, a company must have applied for, and ultimately received, an Emergency Use Authorization (EUA) from the FDA. According to FDA records, UMI applied for an EUA for its COVID-19 test kits, but never received it due to major deficiencies in UMI’s test studies.
In November 2022, Fresno County officials notified UMI that they were going to inspect UMI’s Fresno facility to ensure everything was up to code following a fire that occurred at the facility. FDA officials then received an email from UMI’s attorney saying that the company had gone out of business and sold its assets to PBI, a company that was formed in Las Vegas, Nevada. PBI was never registered with the FDA to manufacture or import any in vitro diagnostic test kits in the United States, and never received an EUA to manufacture and distribute COVID-19 test kits. Therefore, any such test kits would be misbranded medical devices.
According to the criminal complaint, during the investigation, Zhu made several false statements to FDA officials, including that his name was Qiang “David” He; that he was hired by UMI as a COVID-19 consultant in 2021; that he was hired by PBI just a couple of weeks ago to communicate with government agencies and dispose of property at the warehouse as requested by those agencies; that he did not know anything about the manufacturing or distribution histories for UMI or PBI; and that he knew nothing about an Amazon webpage showing PBI‑branded pregnancy test kits for sale or a shipment of 47,500 pregnancy test kits from China to UMI at an address in Las Vegas.
This case is the product of an investigation by the FDA Office of Criminal Investigations, with assistance from the Federal Bureau of Investigation and the California Department of Public Health – Food and Drug Branch. Assistant U.S. Attorneys Joseph D. Barton, Arelis M. Clemente, and Henry Z. Carbajal III are prosecuting this case.
If convicted, Zhu faces a maximum statutory penalty of three years in prison for the misbranding of medical devices charge, and five more years in prison for the false statements charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
zhu_criminal_complaint.pdf
18 October 2023
Xavier Zamora Sentenced to 22 Years in Prison for the 2019 Murder of U.S. Letter CarrierRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Dominique Giroux, Acting Inspector in Charge of the Phoenix Division of the U.S. Postal Inspection Service, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Xavier Zamora was sentenced to 22 years in prison for the murder of U.S. Postal Service Letter Carrier José Hernandez in 2019. Zamora, 21, of Albuquerque, pled guilty on June 8, 2022, to second degree murder of an employee of the United States and using a firearm during a crime of violence resulting in death.
According to court records, on April 22, 2019, Hernandez was delivering mail to a community mailbox on Terracotta Place SW in Albuquerque when he was caught up in a dispute between Zamora and his mother outside her home. The quarrel between mother and son escalated and, when Hernandez attempted to intervene, Zamora became belligerent and attempted to instigate a fight with Hernandez, striking him and pushing him down before running back to the house when Hernandez advanced towards him. Inside the house, Zamora retrieved a handgun from the home and returned outside where he followed Hernandez back to his postal unit. When Hernandez turned to face Zamora, Zamora shot Hernandez in the stomach from a distance, and Hernandez collapsed near his vehicle. Zamora then retreated back to the house before fleeing through the backyard.
Neighbors quickly moved to render aid to Hernandez while first responders from the Albuquerque Police Department, who were unaware Zamora had fled, did their best to assist and protect bystanders from the imminent threat of gunfire from inside the home. Despite the heroic efforts of civilians, law enforcement officers and emergency personnel, Hernandez died from extensive internal bleeding 20 minutes after being shot by Zamora.
Police found Zamora hiding out a few days later in a home about five minutes from where Hernandez was shot. The firearm used in the murder has never been located.
Hernandez was a husband, a father of four, a son, and a United States Army combat veteran who served his country honorably and sought to live his life as a positive member of the community. Other Letter Carriers described Hernandez as someone with an outgoing personality, who liked to joke, had a loud laugh, one who did not talk negatively about others, and who loved to listen to music. In his public life, he was known as a Disk Jockey (“DJ”); a Hot Wheels, Avengers and DC Comic collector; and a superhero movie and Star Wars fan. In his private life, Hernandez believed in the sanctity of family, and the respect one must show to others. On his phone, he kept pictures of his family and friends, and Church of Jesus Christ of Latter-day Saints resource materials to support his personal and family scripture studies.
“José Hernandez died protecting someone he did not know because he believed that every member of our community deserves to live in safety,” said U.S. Attorney Alexander Uballez. “Today, we pay homage to his sacrifice, and the daily service of our Postal Carriers. In honor of José, we will know no strangers, we will tolerate no bullies, and we will work together to bring safety to our community.”
“U.S. Postal Service letter carriers are public servants, bringing American citizens their mail each day,” said Acting Inspector in Charge Dominique Giroux. “With violent crime increasing across the country, rest assured the U.S. Postal Inspection Service remains committed to investigating and bringing to justice every person who harms our employees. This significant sentence takes violent offender Xavier Zamora off the street and hopefully provides some peace to the Hernandez family. We are grateful to the U.S. Attorney’s Office and our local, state, and federal law enforcement partners who assisted on this case.”
"Far too many of us have felt this loss within our agencies," said FBI Albuquerque Special Agent in Charge Raul Bujanda. “The impact and pain extend beyond the agency and the family; it extends to the community. Even more so when the individual is part of the fabric of the nation making a difference in every community across this country. On behalf of the Hernandez family and others suffering from the loss of a family member to violent crime, the FBI will continue to work in partnership with local, state, tribal and federal partners to ensure offenders like Xavier Zamora are brought to justice.”
The U.S. Postal Inspection Service investigated this case with assistance from the FBI Albuquerque Field Office, Albuquerque Police Department and New Mexico State Police. Assistant United States Attorneys Niki Tapia-Brito and Eva M. Fontanez are prosecuting the case.
# # #
23-248
Winter Garden Man Sentenced to 40 Years in Federal Prison for Production and Receipt of Child Sex Abuse MaterialRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Michael Remaley (22, Winter Garden) to 40 years in federal prison for the production and receipt of child sex abuse material. Remaley had pleaded guilty on July 18, 2023.
According to court documents, over the course of a two-week span, Remaley used the application Snapchat to entice a 14-year-old girl to send him sexually explicit videos of herself. Remaley also shared with a second Snapchat user several media files depicting child sex abuse material, including a video of a female child between the ages of five and eight years old being sexually abused.
“Removing predators like Remaley from society and away from victimizing young children will always be a focus of our HSI special agents,” said HSI Orlando Assistant Special Agent in Charge David Pezzutti. “This significant sentence is a testament to our partnership with the U.S. Attorney’s Office for the Middle District of Florida. Together, we’ll continue to protect our most vulnerable from becoming lifetime victims.”
This case was investigated by Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Stephanie A. McNeff.
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 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 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.justice.gov/psc.
VIP Healthcare Solutions, Inc. and Two Company Officials Plead GuiltyRead the Press Release
SAN JUAN, Puerto Rico – Ivelisse Rivera-Padilla, Carla Carrillo-Torres, and VIP Healthcare Solutions, Inc. (“VIP Healthcare”) pleaded guilty before United States District Court Chief Judge Raul M. Arias Marxuach.
VIP Healthcare pleaded guilty to making a false statement in connection with a Paycheck Protection Program (“PPP”) loan application, in violation of 18 U.S.C. § 1014. As admitted in Court by VIP Healthcare’s secretary, Carla Carrillo-Torres, the company falsely certified the accuracy of their April 7, 2020, PPP loan application for $249,755.35 and failed to identify additional owners of VIP Healthcare that owned more than 20% of the company.
Carla Carrillo-Torres separately pleaded guilty to violating 15 U.S.C. § 645(c) and admitted to submitting the fraudulent PPP loan application on behalf of VIP Healthcare. Additionally, Carla Carrillo-Torres admitted to answering “no” when required to disclose if any owner of VIP Healthcare was presently involved in any bankruptcy proceeding. At the time, Carla Carrillo-Torres knew that her partner, Ivelisse Rivera-Padilla, owned more than 20% of VIP Healthcare and was involved in a Chapter 13 Bankruptcy proceeding. The pending bankruptcy would have precluded VIP Healthcare from obtaining the PPP loan if disclosed to the United States Small Business Administration.
Ivelisse Rivera-Padilla, the President of VIP Healthcare and a licensed attorney, pleaded guilty to 14 counts of bankruptcy fraud for making materially false representations in violation of 18 U.S.C. § 157.
Ivelisse Rivera-Padilla concealed property and income and failed to disclose all of the bankruptcy estate during the course of her bankruptcy proceedings, including, but not limited to, the creation, operation, ownership, and control of VIP Healthcare, which operated the “Job Andujar” Diagnostic and Treatment Center in the Municipality of Cataño until approximately March 25, 2023.
Ivelisse Rivera-Padilla also concealed the purchase of an apartment located at Condominium Golf & Playa, Cabo Rojo, Puerto Rico, for $270,000, and a 2,159.5152 square-meter plot of land located at Rainforest and Sea View Resort in Luquillo, Puerto Rico, for $275,000. Rivera-Padilla further concealed her interest in another corporate entity known as Farmacia Libertad, as well as income from a rental property business through AirBnB.
The defendants are scheduled to be sentenced on January 17, 2024. Both Carla Carrillo-Torres and Ivelisse Rivera-Padilla have agreed to forfeit any interest in the two concealed properties as a part of their plea agreement, in additional to the sentence to be imposed by United States District Court Chief Judge Raul M. Arias Marxuach.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico; Mary Ida Townson, U.S. Trustee for Georgia, Florida, Puerto Rico, and the Virgin Islands (Region 21); and Joseph González, Special Agent in Charge of the FBI San Juan Field Office made the announcement.
The Federal Bureau of Investigation and the United States Trustee Program are investigating the case.
Special Assistant U.S. Attorney José Capó Iriarte and Special Assistant U.S. Attorney José C. Díaz Vega from the Office of the U.S. Trustee are prosecuting the case.
###
United States Issues Advisory to Industry on Iran Ballistic Missile ProcurementRead the Press Release
The Departments of Justice, Commerce, State and Treasury today issued an advisory to alert the international community, private sector and public to the threat posed by Iran’s ballistic missile procurement activities.
The advisory informs private industry of deceptive practices used by Iranian ballistic missile procurement networks, Iran’s ballistic missile-related activities, key goods sought by Iran’s missile program and relevant U.S. sanctions and export control authorities. In addition, the advisory provides and overview on minimizing sanctions and export control risk, including discussion of enforcement efforts by the Justice Department and other agencies.
Today’s announcement complements ongoing work by the Justice Department, including its the Disruptive Technology Strike Force. The Justice Department and Commerce Department’s Bureau of Industry and Security (BIS) in February created the Disruptive Technology Strike Force, an interagency effort focused on investigating and prosecuting the illicit transfer of sensitive technologies to foreign state adversaries, including Iran.
The announcement further complements recent work by the National Security Division regarding corporate compliance. To encourage corporate disclosures of potential criminal violations of national security laws, including sanctions and export laws, the National Security Division updated its voluntary self-disclosure policy this past March. The Justice Department has also announced the hiring of 25 new prosecutors in the National Security Division to investigate and prosecute sanctions evasion, export control violations and similar economic crimes.
Companies should be aware that Iran relies on foreign input to crease the lethality and accuracy of its ballistic missile systems. Private industry is on the front lines of detecting and denying Iran’s procurement efforts, and it is critical that companies be familiar with the techniques, entities, goods and technologies involved in Iran’s ballistic missile procurement efforts.
The advisory is available here.
U.S. Department of Justice awards more than $11 million for anti-violence programs in Washington StateRead the Press Release
Seattle – The U.S. Department of Justice, Office of Justice programs is awarding more than $11 million in grant funding to entities in Washington State to combat community violence, especially youth violence, announced Acting U.S. Attorney Tessa M. Gorman. The two largest grants of $4 million each are going to the state and a King County non-profit for distribution to smaller community-based organizations.
“These federal dollars will help identify and support local programs that are working to reduce violence in our community,” said Acting U.S. Attorney Gorman. “I am particularly pleased to see the focus on youth violence and stopping gun crime. The epidemic of gun violence in our neighborhoods requires a sustained response from both law enforcement and community.”
The Washington State Department of Commerce was awarded $4 million to implement a Community Based Violence Intervention and Prevention Initiative to expand programs that address community violence across the state. The money is targeted towards underserved communities. As part of this work the grant will fund a statewide summit to share tools and knowledge about what is working to decrease community violence.
Similarly, a $4 million grant to Seattle’s Children & Youth Justice Center will provide support, training, and technical assistance to up to five community-based organizations who are serving youth in King County to prevent community violence. Additionally, the King County Department of Community and Human Services, Children Youth and Adult Division was awarded $1 million to implement policies aimed at reducing recidivism and enhancing community partnerships to reform the youth justice system.
Both the Eastern District of Washington and the Western District of Washington were awarded Project Safe Neighborhood grants aimed at combatting gun violence. For western Washington $285,039 will go towards projects that prevent gun violence in the South Sound, Clark County, and Snohomish County regions. In eastern Washington $110,648 will support gang and gun violence intervention in Yakima and Kennewick.
Additionally, Tacoma Police were awarded $800,000 to improve their investigation of gun crime. The grant is to fund implementation and evaluation of ShotSpotter technology to identify precise locations of gunshots. The money will also fund additional fingerprint technology and equipment to improve the collection of evidence at crime scenes.
Finally, Educational Service District 112 in Clark County was awarded $1 million to implement an innovative school-based mental health treatment and case coordination program for students who are involved with the juvenile justice system or have been identified through the Student Threat Assessment process. The money will fund three therapist who will serve students in schools in the nine districts that make up the Service District.
U.S. Attorney’s Office for the Middle District of Louisiana Observes Domestic Violence Awareness MonthRead the Press Release
October marks the observance of Domestic Violence Awareness Month (DVAM). U.S. Attorney Ronald C. Gathe, Jr. joins the U.S. Department of Justice in commemorating DVAM, paying tribute to victims and survivors, and saluting the dedication of advocates, service providers, justice professionals, law enforcement officers, and first responders who tirelessly work in support of survivors.
Domestic violence, dating violence, and intimate partner violence can have long-lasting impacts and consequences. Approximately one in four women and one in seven men will experience severe domestic violence in their lifetimes; however, rates are disproportionately higher for American Indian and Alaska Native populations, women of Color, lesbian, gay, bisexual, transgender, queer, intersex, and two-spirit people, and people with disabilities. DVAM provides an opportunity to spread awareness about domestic violence and encourage everyone to play a role in ending gender-based violence.
“We want our community to know that we are here to support victims and survivors in the Middle District of Louisiana – not just in October, but every month,” said U.S. Attorney Ronald C. Gathe, Jr. “And we who serve as federal prosecutors for the Middle District of Louisiana have a duty to use all the tools at our disposal—and leverage our partnerships with local law enforcement and prosecutors—to ensure victims have a viable path to safety and justice.”
U.S. Attorney’s Office for the Eastern District of Washington Observes Domestic Violence Awareness MonthRead the Press Release
Spokane, WA – October marks the observance of Domestic Violence Awareness Month. U.S. Attorney for the Eastern District of Washington, Vanessa R. Waldref, joins the U.S. Department of Justice in commemorating Domestic Violence Awareness Month, paying tribute to victims and survivors, and saluting the dedication of advocates, service providers, justice professionals, law enforcement officers, and first responders who tirelessly work in support of survivors.
Domestic violence, dating violence, and intimate partner violence can have long-lasting impacts and consequences. Approximately one in four women and one in seven men will experience severe domestic violence in their lifetimes; however, rates are disproportionately higher for
American Indian and Alaska Native populations, women of Color, lesbian, gay, bisexual, transgender, queer, intersex, and two-spirit people, and people with disabilities. Domestic Violence Awareness Month provides an opportunity to spread awareness about domestic violence and encourage everyone to play a role in ending gender-based violence.
A crucial part of combatting domestic violence and reducing violent crimes includes enforcing federal firearm prohibitions. Domestic violence abusers with access to a gun are five times more likely to kill their partners. In addition to their lethality, firearms are used by abusers to inflict fear, intimidation, and coercive control. Under federal law, people with domestic violence misdemeanor and felony convictions and those subject to domestic violence protective orders are prohibited from purchasing or possessing firearms.
In October 2022, U.S. Attorney Waldref announced her office’s Safe Homes and Safe Community Initiative to prevent domestic violence homicides and prevent abusers who have previously been convicted of domestic violence offenses from having access to firearms. Working with the Yakima Police Department, Yakima County Prosecutor’s Office, Spokane Police Department, and Spokane County Prosecutor’s Office, the U.S. Attorney’s Office to target individuals who were identified as repeat domestic violence abusers in possession of firearms. Data shows that offenders with a history of domestic violence pose a high risk of homicide to their family members. Indeed, domestic violence offenders with a gun in the home are five times more likely to kill their partners than other offenders.
“Everyone deserves to live in a safe home free of domestic violence,” said U.S. Attorney Waldref. “Federal prosecutors witness the devastating impacts of domestic violence on the lives of victims and their families, who may endure long-term trauma and are at increased risk for returning to abusive relationships. Here in the Eastern District of Washington, my Office is committed to use all the tools at our disposal—including leveraging our partnerships with local law enforcement and local prosecutors—to ensure victims have a viable path to safety and justice.”
Several cases have already been charged in Safe Homes, Safe Community. Some examples include:
- United States v. James Duane Deckard, 1:22-cr-02066-MKD: Sentenced to 48 months in March 2023 for being an Unlawful User of Controlled Substances and Person Convicted of Domestic Violence in Possession of a Firearm and Ammunition, in connection with pointing a firearm at his intimate partner during a domestic dispute;
- United States v. Frederick Terrell, 2:22-cr-00138-RMP: Sentenced to 51 months in June 2023 for being a Felon in Possession of a Firearm, in connection with sending his domestic partner a series of threating videos of himself firing a pistol;
- United States v. Daniel Parks Conant, 2:23-cr-00057: Indicted in May 2023, for possessing a firearm after being convicted of domestic abuse on the Colville Indian Reservation in February 2021.
U.S. Attorney Waldref continued, “Right here in Eastern Washington my Office’s Safe Home Safe Community Initiative focuses on curbing gun violence by removing firearms unlawfully possessed by individuals with a track record of violent crime and domestic violence – these efforts protect victims, law enforcement, and the entire community.”
Video Message: https://www.youtube.com/watch?v=zRNct8hfuxw
U.S. Attorney Waldref continued, “Right here in Eastern Washington my Office’s Safe Home Safe Community Initiative focuses on curbing gun violence by removing firearms unlawfully possessed by individuals with a track record of violent crime and domestic violence – these efforts protect victims, law enforcement, and the entire community.”
Facing domestic violence? Find support in your state through @OVWJustice's Local Resources: https://www.justice.gov/ovw/local-resources
Immediate help for domestic violence victims: Call the National Domestic Violence Hotline (@ndvhofficial) at 1-800-799-7233 or Strong Hearts Native Helpline (@strongheartsdv) at 1-844-762-8483. #DVAM2023
Two Men Plead Guilty to Falsifying Documents Related to Testing of Equipment at Nuclear Power PlantsRead the Press Release
Two men pleaded guilty today for their roles in creating false calibration certificates in a matter within the jurisdiction of the Nuclear Regulatory Commission (NRC).
According to court documents, Miguel Marcial Amaro, 56, of Newark, Delaware, and Martin Ramos, 52, of Levittown, Pennsylvania, worked for a company that provided acoustic emissions (AE) testing to nuclear power plants to detect structural defects in the plant’s equipment. Following the testing, Marcial and Ramos helped create and transmit final testing reports to the owners of the plants which, among other things, contained calibration certificates for the equipment used.
Between 2010 and 2021, Marcial was responsible for ensuring that the company’s AE testing equipment was calibrated annually; Ramos worked under Marcial as an engineer. The two men created numerous false calibration certificates for AE testing equipment, and 15 of these false certificates were sent a total of 29 times to nuclear plant owners as part of final testing reports required by the NRC. The falsified calibration certificates were discovered in 2021 during an external audit.
“Today, we hold defendants accountable for deliberately attempting to bypass testing protocols that are essential to keeping nuclear power plants safe,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “We will continue to use all available enforcement authorities to support NRC’s efforts to ensure that nuclear energy is safely created.”
“Many thanks to the NRC and the ENRD for partnering in enforcement and ensuring the accuracy of inspection reports critical to the safe operation of nuclear power plants,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “My office takes safety matters such as these seriously, and these guilty pleas show that anyone seeking to evade nuclear testing protocols will be held accountable.”
“The NRC takes its mission of protecting public health and safety very seriously,” said Director Thomas G. Ashley Jr. of the NRC’s Office of Investigations. “It’s vital that employees at NRC-regulated entities act with integrity. Today’s announcement shows deliberate violations of NRC requirements will not be tolerated.”
Marcial and Ramos are scheduled to be sentenced on Jan. 25, 2024. Each faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The NRC’s Office of Investigation conducted the investigation.
Senior Trial Attorney Daniel Dooher and Trial Attorney Rachel M. Roberts of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Joan E. Burnes for the Eastern District of Pennsylvania are prosecuting the case.
Two Lakeland Men Plead Guilty to Federal Charges in Connection with Drive-By Shooting of 11 Men in LakelandRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Nicholas Quinton Hanson (31, Lakeland) and Marcus Dewonn Mobley, Jr. (23, Lakeland) have pleaded guilty to possessing ammunition, and possessing a firearm and ammunition, respectively, as convicted felons. Each faces a maximum penalty of 15 years in federal prison. Sentencing dates have not yet been set.
According to the plea agreements, on January 30, 2023, 11 individuals were shot in a drive-by shooting carried out from a blue Nissan Altima near Iowa Avenue and Plum Street in Lakeland. Mobley owned a blue Nissan Altima. Evidence collected from Hanson and Mobley’s cellphones showed they communicated prior to, and after, the shooting. Hanson and Mobley’s DNA was recovered from spent shell casings found at the scene of the shooting. At the time, Hanson and Mobley both had prior felony convictions and therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Strategic Pattern Armed Robbery Technical Apprehension (SPARTA) unit of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Lakeland Police Department, the Polk County Sheriff’s Office, and the State Attorney’s Office for Florida’s 10th Judicial Circuit. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.
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.
Two California Men Accused of Supplying Meth from Mexico to UtahRead the Press Release
SALT LAKE CITY – A federal grand jury in Salt Lake City returned an indictment today charging two men from Southern California for allegedly possessing with the intent of distributing methamphetamine in Utah.
According to court documents, on October 7, 2023, Oscar Soto-Covarrubias, Sr., 73, of San Diego, California, and Oscar Soto Jr., 26, of Fontana, California, were stopped by a Utah Highway Patrol Trooper for an expired registration. During the traffic stop, a drug detection K9 alerted to narcotics. In a subsequent search of the vehicle, agents located and seized a backpack containing approximately 6,780 grams (15 pounds) of field-tested meth. As part of a drug conspiracy investigation, law enforcement identified Soto-Covarrubias, Sr. and Soto Jr. as a Mexico/California-based source of supply of methamphetamine for Utah-based meth redistributors.
Oscar Soto Covarrubias Sr. and Oscar Soto Jr. are charged with possession of methamphetamine with intent to distribute. Their initial court appearance on the indictment is scheduled for Oct. 19, 2023, at 11:30 a.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is part of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA) and the Unified Police Department Metro Gang Unit with assistance from the Utah Highway Patrol.
Assistant United States Attorney Stephen L. Nelson of the District of Utah is prosecuting the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Justice Department Issues Fifth Annual Elder Justice ReportRead the Press Release
Earlier today, the Justice Department issued its fifth annual report to Congress on its efforts to combat elder fraud and abuse. The report summarizes the Department’s extensive efforts during the reporting period from July 1, 2022 through June 30.
“The Justice Department is intensifying our efforts to fight the despicable crimes of elder fraud and abuse,” said Attorney General Merrick B. Garland. “As reflected in this year’s report, the Department is aggressively pursuing perpetrators of elder fraud and abuse, supporting victims, and raising public awareness to prevent elder fraud and abuse before they occur.”
“During the past year, the Department has pursued hundreds of criminal and civil cases to bring perpetrators who prey on older adults to justice,” said Deputy Attorney General Lisa Monaco. “Working with our law enforcement partners, our agents and prosecutors have employed disruption strategies and obtained restitution and forfeiture orders to deter potential offenders, minimize losses, make victims financially whole, and prevent wrongdoers from profiting from their crimes.”
“Every year, millions of older Americans experience some form of elder abuse. And sadly, the majority of elder abuse cases go unreported,” said Associate Attorney General Vanita Gupta. “The Department is taking an active and multifaceted approach to addressing elder abuse, and our efforts reflect the hard work of so many, including our prosecutors, crime victim specialists, agents and investigators, program analysts, and subject matter experts.”
This year’s report reflects the four pillars of the Department’s elder justice work.
First, holding perpetrators of elder abuse and fraud accountable is the cornerstone of the Department’s elder justice work. During the reporting period, the Department brought nearly 300 criminal and civil actions against more than 650 defendants who collectively stole more than $1.5 billion from over 2.4 million victims. Some of these defendants engaged in transnational and domestic fraud schemes, including lottery, romance, and tech support scams. The Department also pursued nursing home operators that provided grossly substandard care to their residents.
Second, the Department supports in various ways older Americans who have experienced abuse or financial exploitation. Over the past year, the Department returned hundreds of millions of dollars to victims of elder fraud schemes, while helping to freeze millions of dollars for other older victims before their funds were transferred to fraudsters. The Department also supported over 5,000 victim assistance organizations that provided services (including individual advocacy, crisis intervention, civil legal assistance, transportation, and emergency shelter) to over 240,000 victims aged 60 and older. The Department continued to support the National Elder Fraud Hotline, which helped tens of thousands of older adults report suspected fraud or connected them to available social services.
Third, as state, local, and Tribal elder justice professionals are often on the front line in responding to elder abuse and fraud cases, the Department worked to support the capacity and ability of state, local, and Tribal communities to identify, address, and combat elder abuse in its many forms. For example, the Department awarded grants to six Enhanced Multidisciplinary teams to work with older victims of financial exploitation and abuse. These grantees join the 23 local multidisciplinary teams also funded by the Department to better identify and respond to cases of elder abuse and more comprehensively serve and support victims of financial exploitation. The Department also funded the first National Center for State and Tribal Elder Justice Coalitions to support statewide coordination and collaboration among elder justice organizations, and developed and shared new resources, training, and tools for state and local law enforcement to more effectively identify and investigate elder abuse and fraud.
Lastly, the Department is committed to raising public awareness of fraud schemes and empowering older Americans and their families with the knowledge and information to protect themselves from elder fraud and abuse. For that reason, Department employees conducted or participated in over 700 elder justice outreach and training events across the country to raise public awareness of elder fraud and abuse and reached over 28 million Americans.
To report elder financial fraud, call the National Elder Fraud Hotline, 1-833-FRAUD-11 (1-833-372-8311). For more information on the Department’s elder justice activities, visit www.elderjustice.gov.
Texarkana-Area Drug Dealer Sentenced to Ten Years in Federal PrisonRead the Press Release
TEXARKANA, ARKANSAS – A Texas man was sentenced yesterday to 120 months in federal prison for distributing methamphetamine in Texarkana, Arkansas. The Honorable Judge Susan O. Hickey, Chief United States District Judge, presided over the case. There is no parole in the federal system.
According to court documents, Antonio Griffin, 40, of Wake Village, Texas, pleaded guilty in February 2023 to selling almost four ounces of pure methamphetamine to a confidential informant operating under the supervision of the Federal Bureau of Investigation and the Bi-State Narcotics Task Force, in Texarkana, Arkansas.
U.S. Attorney David Clay Fowlkes, of the Western District of Arkansas, made the announcement.
The Bi-State Narcotics Task Force, the Texarkana, Arkansas, Police Department, and the FBI investigated the case.
Assistant U.S. Attorney Graham Jones prosecuted the case for the United States.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Tampa Felon Sentenced to 2 Years in Federal Prison for Possessing Firearm and AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Carvia Harris (35, Tampa) to two years in federal prison for possessing a firearm and ammunition as a convicted felon. Harris had pleaded guilty on May 9, 2023.
According to court documents, Harris, a multi-time convicted felon, fled from a traffic stop involving a stolen car in Hillsborough County. The vehicle was driven by a known fentanyl trafficker, Randell Love, who later pleaded guilty to federal armed fentanyl trafficking charges arising from a separate incident. Deputies from the Hillsborough County Sheriff’s Office recovered a loaded .40 caliber pistol with an obliterated serial number from a bag inside the car. A crime scene technician processed the firearm and magazine for fingerprints. A print on the magazine was comparable and came back as a match to Harris. As a convicted felon, Harris is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Christopher F. Murray.
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.
Suburban Chicago Man Charged with Insider TradingRead the Press Release
CHICAGO — A suburban Chicago man used insider information obtained from his spouse to purchase options in a biotech company’s stock before it was acquired by a large pharmaceutical company, according to a federal criminal charge filed by the U.S. Attorney’s Office in Chicago.
In the spring of 2019, BRIAN RUBIN made $90,450 in illegal profits from the purchase and sale of stock options in the Colorado-based biotech company that employed Rubin’s spouse, according to the criminal information filed Tuesday in U.S. District Court in Chicago. Unbeknownst to his spouse, Rubin used material, non-public information obtained from her about the biotech company’s successful development of certain products and its expected acquisition by the New York-based pharmaceutical company to purchase the options ahead of a public announcement of the acquisition in June 2019, the charge alleges. After the announcement, the biotech company’s stock price increased and Rubin exercised the options for the profit, the charge alleges. Rubin’s spouse had learned the information through her position as an account director for the biotech company’s Midwest operations, the charge alleges.
Rubin, 51, of Deerfield, Ill., is charged with one count of securities fraud. The charge is punishable by up to 20 years in federal prison. Arraignment in federal court in Chicago has not yet been scheduled.
The charge was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission, which filed a civil enforcement action against Rubin, provided valuable assistance. Assistant U.S. Attorneys Jared Hasten and Adam Rosenbloom represent the government in the criminal case.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Rubin informationSouth Bend Man Sentenced to 64 Months in PrisonRead the Press Release
SOUTH BEND – Elijah Jackson, 34 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to unlawful possession of a firearm by a felon, announced United States Attorney Clifford D. Johnson.
Jackson was sentenced to 64 months in prison followed by 2 years of supervised release.
According to documents in the case, in June 2022, Jackson forced his way into a home, struggled with a resident, and then fired a gunshot after leaving the home. Police officers located him walking in the area of the incident, at which point he fled from officers and dropped a backpack. After a foot pursuit, Officers recovered a loaded handgun from his waistband and another loaded handgun from his pocket. His backpack contained a loaded extended magazine for a firearm as well as marijuana and pills.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the South Bend Police Department. The case was prosecuted by Assistant United States Attorney Jerome W. McKeever.
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.
Social Security employee pleads guilty to stealing government benefitsRead the Press Release
ATLANTA – Latonja Goodrum, a former Social Security employee who used her position to steal benefits from disabled Supplemental Security Income (SSI) beneficiaries, has pleaded guilty to a federal charge of theft of government funds.
“Disabled and low-income citizens rely on the safety net afforded by the Social Security Administration,” said U.S. Attorney Ryan K. Buchanan. “Goodrum abused her position at the agency to unlawfully access and use sensitive and personal information to steal thousands of dollars from individuals in critical need of these funds.”
“Former SSA employee, Goodrum, admitted to inappropriately using information in SSA records to steal money from SSI recipients, seemingly without regard for their needs. Her actions were selfish and criminal,” said Gail S. Ennis, Inspector General for the Social Security Administration. “She misused her position of public trust with SSA and knowingly took money from individuals who rely on SSA employees for assistance in critical times. My office will continue to investigate those who violate SSA programs and operations. I thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Diane C. Schulman for prosecuting this case.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From approximately June through August 2022, Goodrum, a claims specialist at the Social Security Administration’s field office in Decatur, Georgia, illegally accessed the records of six SSI beneficiaries. Goodrum then used the personal identifying information of these individuals to divert one-time lump sum payments they were due to her own PayPal account. Once the funds were deposited into her PayPal account, Goodrum transferred the money to a personal bank account.
To conceal her scheme, Goodrum, once the deposits arrived in her PayPal account, re-accessed the beneficiaries’ Social Security records to restore their true direct deposit banking information. Goodrum stole more than $15,000 in this way. A supervisor eventually detected the fraud and contacted the Social Security Administration – Office of the Inspector General, which launched an investigation. Goodrum admitted her crime when confronted by law enforcement and has since been terminated from her position.
Sentencing for Goodrum, 55, of Stone Mountain, Georgia, is scheduled for January 22, 2024, at 10:00 am before U.S. District Judge Steven D. Grimberg.
This case is being investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Social Media Influencer Sentenced for Election Interference in 2016 Presidential RaceRead the Press Release
A social media influencer was sentenced today to seven months in prison and fined $15,000 for his role in a conspiracy to interfere with potential voters’ right to vote in the 2016 presidential election.
According to court documents, by 2016, Douglass Mackey, aka Ricky Vaughn, had established an audience on Twitter with approximately 58,000 followers. A February 2016 analysis by the MIT Media Lab ranked Mackey as one of the most significant influencers of the then-upcoming presidential election. Between September 2016 and November 2016, Mackey conspired with other influential Twitter users and with members of private online groups to use social media platforms, including Twitter, to disseminate fraudulent messages that encouraged supporters of presidential candidate Hillary Clinton to “vote” via text message or social media, which was legally invalid.
For example, on Nov. 1, 2016, in or around the same time that Mackey was sending tweets suggesting the importance of limiting “black turnout,” Mackey tweeted an image depicting an African American woman standing in front of an “African Americans for Hillary” sign. The ad stated: “Avoid the Line. Vote from Home,” “Text ‘Hillary’ to 59925,” and “Vote for Hillary and be a part of history.” The fine print at the bottom of the deceptive image stated: “Must be 18 or older to vote. One vote per person. Must be a legal citizen of the United States. Voting by text not available in Guam, Puerto Rico, Alaska or Hawaii. Paid for by Hillary For President 2016.” The tweet included the typed hashtag “#ImWithHer,” a slogan frequently used by then-presidential candidate Hillary Clinton. On or about and before Election Day 2016, at least 4,900 unique telephone numbers texted “Hillary” or some derivative to the 59925 text number, which had been used in multiple deceptive campaign images that Mackey and his co-conspirators tweeted.
Several hours after tweeting the first image, Mackey tweeted an image depicting a woman seated in a conference room typing a message on her cell phone. This deceptive image was written in Spanish and mimicked a font that the Clinton campaign used in authentic ads. The image also included a copy of the Clinton campaign’s logo and the “ImWithHer” hashtag.
A federal jury in Brooklyn previously convicted Mackey at trial for conspiracy against rights.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.
The FBI investigated the case.
Trial Attorney William J. Gullotta of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Erik D. Paulsen and F. Turner Buford and Paralegal Specialist Shivani Parshad for the Eastern District of New York prosecuted the case.
Social Media Influencer Douglass Mackey Sentenced after Conviction for Election Interference in 2016 Presidential RaceRead the Press Release
Douglass Mackey, was sentenced today by United States District Judge Ann M. Donnelly to 7 months in prison for his role in a conspiracy to interfere with potential voters’ right to vote in the 2016 election for the Office of the President of the United States. Douglass Mackey, also known as “Ricky Vaughn,” was previously convicted of the charge of Conspiracy Against Rights at trial by a federal jury in Brooklyn. Mackey was convicted of the charge in March 2023 following a three-week trial.
Breon Peace, United States Attorney for the Eastern District of New York, Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“One of the foundational rights we hold as Americans, a right that many fought so hard to obtain, is the right to vote. The defendant weaponized disinformation in a dangerous scheme to stop targeted groups, including black and brown people and women, from participating in our democracy,” stated United States Attorney Peace. “This groundbreaking prosecution demonstrates our commitment to prosecuting those who commit crimes that threaten our democracy and seek to deprive people of their constitutional right to vote.”
As proven at trial, by 2016, Mackey had established an audience on Twitter with approximately 58,000 followers. A February 2016 analysis by the MIT Media Lab ranked Mackey as one of the most significant influencers of the then-upcoming presidential election. Between September 2016 and November 2016, Mackey conspired with other influential Twitter users and with members of private online groups to use social media platforms, including Twitter, to disseminate fraudulent messages that encouraged supporters of presidential candidate Hillary Clinton to “vote” via text message or social media which was legally invalid.
For example, on November 1, 2016, in or around the same time that Mackey was sending tweets suggesting the importance of limiting “black turnout,” the defendant tweeted an image depicting an African American woman standing in front of an “African Americans for Hillary” sign. The ad stated: “Avoid the Line. Vote from Home,” “Text ‘Hillary’ to 59925,” and “Vote for Hillary and be a part of history.” The fine print at the bottom of the deceptive image stated: “Must be 18 or older to vote. One vote per person. Must be a legal citizen of the United States. Voting by text not available in Guam, Puerto Rico, Alaska or Hawaii. Paid for by Hillary For President 2016.” The tweet included the typed hashtag “#ImWithHer,” a slogan frequently used by Hillary Clinton. On or about and before Election Day 2016, thousands of unique telephone numbers texted “Hillary” or some derivative to the 59925 text number, which had been used in multiple deceptive campaign images tweeted by Mackey and his co-conspirators.
Several hours after tweeting the first image, Mackey tweeted an image depicting a woman seated at a conference room typing a message on her cell phone. This deceptive image was written in Spanish and mimicked a font used by the Clinton campaign in authentic ads. The image also included a copy of the Clinton campaign’s logo and the “ImWithHer” hashtag.
This case was investigated by the FBI.
This case is being prosecuted by Assistant United States Attorneys Erik D. Paulsen and F. Turner Buford of the Eastern District of New York’s Public Integrity Section and Trial Attorney William J. Gullotta of the Department of Justice’s Public Integrity Section.
The Defendant:
DOUGLASS MACKEY
Age: 34
West Palm Beach, FloridaE.D.N.Y. Docket No. 21-CR-80 (AMD)
Silicon Valley Executive Sentenced for Defrauding Investors and Participating in COVID-19 and Allergy Testing SchemeRead the Press Release
The president of a Silicon Valley-based medical technology company was sentenced today to eight years in prison and ordered to pay $24 million in restitution for participating in a scheme to defraud investors and a scheme to commit health care fraud and pay illegal kickbacks in connection with the submission of over $77 million in claims for COVID-19 and allergy testing.
“A Silicon Valley executive exploited the pandemic for profit, ultimately endangering patients with unproven COVID-19 tests,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Department of Justice is committed to protecting the people of this nation by investigating and prosecuting those who put public health at risk and use global emergencies to line their own pockets.”
“Schena put profit over public safety. He used the global pandemic as a backdrop to fuel a kickback scheme and a massive fraud upon investors and people searching for better health care during a time of great uncertainty,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “Even in times of national crisis, our office will ensure that Silicon Valley remains a place where innovation and ingenuity – and not fraud and deceit – fuel vibrant markets for investors and inventors.”
According to court documents, Mark Schena, 60, of Los Altos, California, was the president of Arrayit Corporation. Schena engaged in a scheme to defraud Arrayit’s investors by claiming that he had invented a revolutionary technology to test for virtually any disease using a single drop of blood from a finger stick sample. In meetings with investors, Schena and his publicist claimed that Schena was the “father of microarray technology” and that he was on the shortlist for the Nobel Prize. Schena also falsely represented to investors that Arrayit could be valued at $4.5 billion.
“Today’s outcome illustrates HHS-OIG’s unwavering commitment to protecting federal health care programs under any circumstance – especially when a public health emergency presents opportunities for bad actors to exploit,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We continue to work tenaciously with our law enforcement partners to bring to justice those who have constructed schemes to take advantage of the COVID-19 pandemic for personal gain.”
“Every time there’s a disaster of some type, scammers climb out of the woodwork with schemes to bilk people out of their money,” said Postal Inspector in Charge of Criminal Investigations Eric Shen of the U.S. Postal Inspection Service (USPIS). “In this case, Mark Schena and the Arrayit Corporation were already involved in deceiving the public before the COVID-19 pandemic hit. When the pandemic hit, the company then attempted to develop a COVID-19 antibody test but were unsuccessful. Despite having no product and on the verge of bankruptcy, Schena continued to defraud investors, claiming to have multimillion-dollar contracts and other business developments that all proved to be bogus.”
In furtherance of the scheme, Schena failed to release Arrayit’s financial disclosures – as required by the Securities and Exchange Commission (SEC) – and concealed that Arrayit was on the verge of bankruptcy. Schena lulled investors who were concerned that the company was a “scam” by engaging in television appearances and filming videos that fraudulently portrayed the laboratory as busy and high-tech. Schena also issued false press releases and public statements on social media that Arrayit had entered into lucrative partnerships with companies, government agencies, and public institutions, including a children’s hospital and a major California health care provider. The press releases and statements falsely claimed that such entities had agreed to use the Arrayit technology, when in fact no such agreements existed or were of minimal value.
“Those who used the pandemic for illicit profit by engaging in health care fraud and defrauding investors must face the consequences of their actions,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and its partners will work relentlessly to protect the American people from abuses to our financial and health care systems, and this sentencing reflects those efforts.”
Schena also orchestrated an illegal kickback and health care fraud scheme that involved submitting fraudulent claims to Medicare and private insurance for unnecessary allergy testing. Arrayit ran allergy screening tests on every patient for 120 different allergens regardless of medical necessity. To obtain patient blood specimens, Schena paid kickbacks to marketers in violation of the Eliminating Kickbacks in Recovery Act and orchestrated a deceptive marketing plan that falsely claimed that the Arrayit test was highly accurate in diagnosing allergies, when it was not, in fact, a diagnostic test. The Health Care Fraud Unit’s Data Analytics Team supported the prosecution and, as the evidence at trial showed, Arrayit billed more per patient to Medicare for blood-based allergy testing than any other laboratory in the United States.
“This sentence holds the defendant accountable for his large-scale fraud scheme that impacted multiple federal agencies and robbed the taxpayers of millions of dollars,” said Inspector General Michael J. Missal of the Department of Veterans Affairs Office of Inspector General (VA-OIG). “The VA-OIG will continue to work zealously with our law enforcement partners to ensure schemes like this are uncovered, investigated, and prosecuted to the fullest extent of the law.”
“Mr. Schena’s sentencing is a fitting resolution that holds him accountable for a multimillion-dollar fraudulent scheme driven purely by greed and devoid of fiscal responsibility or concern for the patients that would ultimately use his nearly useless products,” said Director Kelly P. Mayo of the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS). “DCIS remains committed to working with its partners to identify and eliminate fraudulent schemes that potentially endanger patient safety and corrupt the integrity of TRICARE, the DoD’s health care program.”
In early 2020, Schena falsely announced that Arrayit “had a test for COVID-19.” Schena told federal agents that it was simple to develop a test for COVID-19 because the switch from testing for allergies to testing for COVID-19 was “like a pastry chef” who switches from selling “strawberry pies” to selling “rhubarb and strawberry pies.” Seeking to capitalize on the nationwide shortage of COVID-19 testing, Schena orchestrated a deceptive marketing scheme that falsely claimed that Dr. Anthony Fauci and other prominent government officials had mandated testing for COVID-19 and allergies at the same time, and required that patients receiving the Arrayit COVID-19 test also be tested for allergies. Schena also concealed from investors and patients that the Food and Drug Administration had informed him that the Arrayit test was not accurate enough to receive an Emergency Use Authorization for use in the United States.
A federal jury convicted Schena on Sept. 6, 2022.
The HHS-OIG’s San Francisco and Detroit Regional Offices, USPIS, FBI, VA-OIG, and DCIS investigated the case.
Principal Assistant Chief Jacob Foster and Trial Attorney Laura Connelly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christina Liu for the Northern District of California prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim who has invested in Arrayit, or you have taken a COVID-19 test prepared or marketed by Arrayit, please visit www.justice.gov/criminal-vns/case/Arrayit.
Silicon Valley Executive Sentenced for Defrauding Investors and Participating in Covid-19 and Allergy Testing SchemeRead the Press Release
SAN JOSE – The president of a Silicon Valley-based medical technology company was sentenced today to eight years in prison and ordered to pay $24 million in restitution for participating in a scheme to defraud investors and a scheme to commit health care fraud and pay illegal kickbacks in connection with the submission of over $77 million in claims for COVID-19 and allergy testing.
Mark Schena, 60, of Los Altos, California, served as the president of Arrayit Corporation. Schena engaged in a scheme to defraud Arrayit’s investors by claiming that he had invented a revolutionary technology to test for virtually any disease using a single drop of blood from a finger stick sample. In meetings with investors, Schena and his publicist claimed that Schena was the “father of microarray technology” and that he was on the shortlist for the Nobel Prize. Schena also falsely represented to investors that Arrayit could be valued at $4.5 billion.
“Schena put profit over public safety. He used the global pandemic as a backdrop to fuel a kickback scheme and a massive fraud upon investors and people searching for better health care during a time of great uncertainty,” said U.S. Attorney for the Northern District of California Ismail J. Ramsey. “Even in times of national crisis, our office will ensure that Silicon Valley remains a place where innovation and ingenuity – and not fraud and deceit – fuel vibrant markets for investors and inventors.”
“A Silicon Valley executive exploited the pandemic for profit, ultimately endangering patients with unproven COVID-19 tests,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Department of Justice is committed to protecting the people of this nation by investigating and prosecuting those who put public health at risk and use global emergencies to line their own pockets.”
“Today’s outcome illustrates HHS-OIG’s unwavering commitment to protecting federal health care programs under any circumstance – especially when a public health emergency presents opportunities for bad actors to exploit,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We continue to work tenaciously with our law enforcement partners to bring to justice those who have constructed schemes to take advantage of the COVID-19 pandemic for personal gain.”
“Every time there’s a disaster of some type, scammers climb out of the woodwork with schemes to bilk people out of their money,” said Postal Inspector in Charge of Criminal Investigations Eric Shen of the U.S. Postal Inspection Service (USPIS). “In this case, Mark Schena and the Arrayit Corporation were already involved in deceiving the public before the COVID-19 pandemic hit. When the pandemic hit, the company then attempted to develop a COVID-19 antibody test but were unsuccessful. Despite having no product and on the verge of bankruptcy, Schena continued to defraud investors, claiming to have multimillion-dollar contracts and other business developments that all proved to be bogus.”
In furtherance of the scheme, Schena failed to release Arrayit’s financial disclosures – as required by the Securities and Exchange Commission (SEC) – and concealed that Arrayit was on the verge of bankruptcy. Schena lulled investors who were concerned that the company was a “scam” by engaging in television appearances and filming videos that fraudulently portrayed the laboratory as busy and high-tech. Schena also issued false press releases and public statements on social media that Arrayit had entered into lucrative partnerships with companies, government agencies, and public institutions, including a children’s hospital and a major California health care provider. The press releases and statements falsely claimed that such entities had agreed to use the Arrayit technology, when in fact no such agreements existed or were of minimal value.
“Those who used the pandemic for illicit profit by engaging in health care fraud and defrauding investors must face the consequences of their actions,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and its partners will work relentlessly to protect the American people from abuses to our financial and health care systems, and this sentencing reflects those efforts.”
Schena also orchestrated an illegal kickback and health care fraud scheme that involved submitting fraudulent claims to Medicare and private insurance for unnecessary allergy testing. Arrayit ran allergy screening tests on every patient for 120 different allergens regardless of medical necessity. To obtain patient blood specimens, Schena paid kickbacks to marketers in violation of the Eliminating Kickbacks in Recovery Act and orchestrated a deceptive marketing plan that falsely claimed that the Arrayit test was highly accurate in diagnosing allergies, when it was not, in fact, a diagnostic test. The Health Care Fraud Unit’s Data Analytics Team supported the prosecution and, as the evidence at trial showed, Arrayit billed more per patient to Medicare for blood-based allergy testing than any other laboratory in the United States.
“This sentence holds the defendant accountable for his large-scale fraud scheme that impacted multiple federal agencies and robbed the taxpayers of millions of dollars,” said Inspector General Michael J. Missal of the Department of Veterans Affairs Office of Inspector General (VA-OIG). “The VA-OIG will continue to work zealously with our law enforcement partners to ensure schemes like this are uncovered, investigated, and prosecuted to the fullest extent of the law.”
“Mr. Schena’s sentencing is a fitting resolution that holds him accountable for a multimillion-dollar fraudulent scheme driven purely by greed and devoid of fiscal responsibility or concern for the patients that would ultimately use his nearly useless products,” said Director Kelly P. Mayo of the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS). “DCIS remains committed to working with its partners to identify and eliminate fraudulent schemes that potentially endanger patient safety and corrupt the integrity of TRICARE, the DoD’s health care program.”
In early 2020, Schena falsely announced that Arrayit “had a test for COVID-19.” Schena told federal agents that it was simple to develop a test for COVID-19 because the switch from testing for allergies to testing for COVID-19 was “like a pastry chef” who switches from selling “strawberry pies” to selling “rhubarb and strawberry pies.” Seeking to capitalize on the nationwide shortage of COVID-19 testing, Schena orchestrated a deceptive marketing scheme that falsely claimed that Dr. Anthony Fauci and other prominent government officials had mandated testing for COVID-19 and allergies at the same time, and required that patients receiving the Arrayit COVID-19 test also be tested for allergies. Schena also concealed from investors and patients that the Food and Drug Administration had informed him that the Arrayit test was not accurate enough to receive an Emergency Use Authorization for use in the United States.
A federal jury convicted Schena on Sept. 6, 2022.
The HHS-OIG’s San Francisco and Detroit Regional Offices, USPIS, FBI, VA-OIG, and DCIS investigated the case.
Assistant U.S. Attorney Christina Liu and Principal Assistant Chief Jacob Foster and Trial Attorney Laura Connelly of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim who has invested in Arrayit, or you have taken a COVID-19 test prepared or marketed by Arrayit, please visit www.justice.gov/criminal-vns/case/Arrayit.
Shrewsbury Bookkeeper Sentenced for Embezzling $849,000Read the Press Release
ST. LOUIS – A bookkeeper from Shrewsbury, Missouri who embezzled $849,000 from a client and blamed one of her employees was sentenced Wednesday to a year and a day in federal prison.
U.S. District Judge Henry E. Autrey also ordered Cora G. Willard, 47, to repay the money. She repaid $100,000 Wednesday.
Willard ran a bookkeeping, payroll, and money-management assistance company called Red Hen Business Services. She admitted in a guilty plea in April that from at least Nov. 29, 2019 through June 10, 2022, she stole $849,000 from a man who operated a money management business and had provided her with access to his account and financial records. Willard made nearly 100 unauthorized wire transfers to herself from the victim’s bank account, even after he’d asked her to close the account. She also sent the tax and bill payments that she was supposed to be making for her client into bank accounts that she controlled. She sent false balance sheets to her client to cover up her theft.
After the client discovered that he was missing large amounts of money, Willard blamed one of her employees, her guilty plea says.
Willard pleaded guilty to one felony count of wire fraud.
The case was investigated by the FBI. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Second Passaic County Man Charged with Conspiring to Commit Seven Armed Robberies of Several PharmaciesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey man arrested in connection with seven armed robberies of pharmacies made his initial appearance today in Newark federal court, U.S. Attorney Philip R. Sellinger announced.
Onijee Burgess, 26, of Paterson, New Jersey, is charged by complaint with one count of conspiracy to commit Hobbs Act robbery. Burgess made his initial appearance today before U.S. Magistrate Judge Edward S. Kiel in Newark federal court and was detained].
According to the complaint and statements made in court:
From November 2022 through April 5, 2023, Burgess conspired with Antonio Rivera and others to commit seven separate armed robberies of five different pharmacies in Paterson and Passaic, New Jersey to steal prescription medication. Rivera was previously charged by complaint for two of these robberies. During those robberies, Rivera fired a gun and pointed it at numerous victims. The charges against him are merely accusations, and he is presumed innocent unless and until proven guilty.
The conspiracy to commit Hobbs Act robbery carries a maximum potential penalty of 20 years in prison and a potential $250,000 fine.
U.S. Attorney Sellinger credited members of the FBI’s New Jersey field office, under the direction of Special Agent in Charge James E. Denney, with the investigation leading to the charges. He also thanked members of the Paterson Police Department, under the leadership of Officer in Charge Isa M. Abbassi; members of the Passaic Police Department, under the leadership of Police Chief Luis Guzman; members of the Passaic County Sheriff's Office, under the leadership of Sheriff Richard H. Berdnik; members of the Clifton Police Department, under the leadership of Police Chief Thomas Rinaldi; members of the Bergen County Prosecutor's Office, under the leadership of Chief Jason Love; and members of the Cedar Grove Police Department, under the leadership of Police Chief John J. Kennedy; with their help in the investigation.
The government is represented by Assistant U.S. Attorney Sophie Kaiser of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
burgess.complaint.pdfRutland Man Pleads Guilty to Conspiring to Access Protected Computer Network of Medical Treatment ProviderRead the Press Release
BOSTON – A Rutland man pleaded guilty today in federal court in Worcester to conspiring to access a protected computer of his former employer – a non-profit substance use and mental health treatment provider that operates recovery centers throughout Massachusetts.
Nathan Howe, 42, pleaded guilty to one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to access a protected computer to obtain information and cause damage and one count of intentionally causing damage to a protected computer and impairing medical treatment. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for Jan. 17, 2024.
Howe was indicted by a federal grand jury in April 2023. Co-conspirator Patrick Edmonds-Morin has since pleaded guilty and is scheduled to be sentenced Dec. 13, 2023.
Howe and Edmonds-Morin were employed by the non-profit until April 2021 and October 2020, respectively. Between September and December of 2021, Howe conspired with Edmonds-Morin to access records of the non-profit’s employees, listen to and view conversations between the employees, and create and deploy a computer program designed to impede the non-profit’s use of the network. In November 2021, Howe accessed the computer network and transmitted a command that shut down the network for the non-profit’s Westborough campus where individuals were receiving in-patient treatment. By shutting down the network, Howe made the non-profit’s electronic medical records system inaccessible at its sites across Massachusetts, impairing or potentially impairing the medical examination, diagnosis, treatment and care of patients.
Additionally, between July 2018 and November 2020, Howe and Edmonds-Morin conspired to commit wire fraud by obtaining cell phones from a cell phone provider which were intended for the non-profit’s staff and, instead, selling the cell phones to third parties for personal profit, typically in the amounts of hundreds of dollars per phone.
“In the Information Age, all one needs to commit crime is a keyboard and malicious intent. As this prosecution demonstrates, our office is committed to protecting computer networks from intrusions and fraud,” said Acting United States Attorney Joshua S. Levy.
“When Nathan Howe betrayed the trust placed in him by his former employer by illegally accessing their computer network, he also potentially jeopardized the treatment and care of their patients,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This case illustrates the ongoing commitment of FBI Boston’s Cyber Task Force to work with our partners to ensure cybercriminals are brought to justice to face significant consequences for their conduct.”
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of up to $250,000. The charge of conspiracy to access a protected computer without authorization to obtain information and cause damage, provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of intentionally causing damage without authorization to a protected computer and causing the potential impairment of medical treatment provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Assistant U.S. Attorney Brendan O’Shea of the Worcester Branch Office is prosecuting the case.
Registered Nurse Charged with Stealing Pain MedicationsRead the Press Release
ST. PAUL, Minn. – A registered nurse has been indicted for fraudulently obtaining prescription opioid pain medications from a hospice clinic, announced U.S. Attorney Andrew M. Luger.
According to court documents, Cambie Elizabeth Broker, 33, was a registered nurse case manager at a hospice clinic in Baxter, Minnesota. Broker entered false prescription requests into the clinic’s e-prescribing software to fraudulently obtain oxycodone, hydromorphone, and fentanyl for illegal sale and personal use.
Broker made her initial appearance today in U.S. District Court before Magistrate Judge Micko.
This case is the result of an investigation conducted by the DEA and the Crow Wing County Sheriff’s Office.
Assistant U.S. Attorney Bradley M. Endicott is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Readout of Justice Department Officials Participation in IACP’s Annual ConferenceRead the Press Release
This week, Justice Department officials attended the annual meeting of the International Association of Chiefs of Police (IACP) in San Diego.
IACP brings together more than 16,000 public safety professionals across the country to provide a space for them to deepen their knowledge and understanding of some of the toughest issues facing our country. By convening federal, state, local, and Tribal law enforcement, officials are able to maintain their continued partnership in order to ensure the public safety and security of the American people.
Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, Associate Attorney General Vanita Gupta, Assistant Attorney General Kristen Clarke for Civil Rights, Assistant Attorney General Amy Solomon of the Office of Justice Programs (OJP), Director Christopher Wray of the Federal Bureau of Investigation (FBI), Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Administrator Anne Milgram of the Drug Enforcement Administration (DEA), Director Ronald L. Davis of the U.S. Marshals Service (USMS), Director Hugh T. Clements of the Office of Community Oriented Policing Services (COPS Office), and Community Relations Service (CRS) Head Justin Lock were all in attendance at IACP.
During a fireside chat moderated by IACP Deputy Executive Director Terry Cunningham, Attorney General Garland discussed the Department’s request for an increase in appropriations for the COPS Office Hiring Program, recently announced funding to law enforcement agencies and stakeholders across the country, the challenges of recruitment and retention in policing, threats to law enforcement personnel, the Department’s anti-violence crime strategy, and the Department’s attack on every element of the fentanyl epidemic – from the precursor suppliers in China, to the laboratories in Mexico, to the leaders of the Sinaloa and Jalisco Cartels, to their distribution networks in the United States.
In her remarks to the IACP State Associations of Chiefs of Police, Deputy Attorney General Monaco addressed the Justice Department’s priorities of combating violent crime, taking illegal firearms off the streets, and battling the flow of synthetic opioids like fentanyl into our communities. She recognized the strong partnerships necessary to combat violent crime and the particular burden that it places on law enforcement officials with limited resources and personnel.
Associate Attorney General Gupta provided opening remarks before a panel, “Leadership Reflections: Navigating Through Crisis,” during the plenary General Assembly session on Monday. In her remarks, the Associate Attorney General acknowledged the challenges in responding to mass violence incidents, hate crimes, critical incidents involving police officers, and the epidemic of gun violence in this country. She underscored the Justice Department’s commitment to supporting law enforcement leaders and their communities in times of crisis. She discussed the Department’s efforts to support victims, including providing $9 million dollars of grants to the National Mass Violence Victimization Resource Center in Charleston, South Carolina, and the important work of the FBI’s Victim Services Division and OJP’s Office for Victims of Crime. And she highlighted the Department support and resources for officer mental health and wellness, the COPS Office’s Collaborative reform program, and the forthcoming after-action report on the horrific mass shooting in Uvalde, Texas.
Assistant Attorney General Clarke spoke to the National Association of Women Law Enforcement Executives, the Human and Civil Rights Committee, and the Indian Country Law Enforcement Section. At these meetings, she underscored the Civil Rights Division’s efforts to secure equal employment opportunities for women in the law enforcement sector and highlighted the division’s efforts to partner with law enforcement to promote constitutional, effective, and non-discriminatory policing.
The Associate Attorney General also provided opening remarks before a panel on the Department’s cross-cutting work to support police departments and the policing profession more broadly. Assistant Attorney General Solomon and COPS Director Clements spoke as leaders from the Justice Department’s grantmaking components about their commitment to providing law enforcement agencies across the country with the resources and support they need to promote safe and thriving communities. They highlighted an increase in dedicated funding for the COPS Hiring Program from $139 million in 2022 to $224 million in 2023, to requested appropriations of $2.7 billion for FY 2024. Additionally, the Department announced last week nearly $75 million in critical grant funding to law enforcement agencies and stakeholders across the country. This funding will help combat drug trafficking and provide additional mental health and wellness resources for law enforcement officers.
The law enforcement component heads all focused on the importance of law enforcement cooperation and partnership in order to accomplish their goals. The heads of all of the Justice Department law enforcement components were at IACP and emphasized the critical work their components are doing to protect the American people. FBI Director Wray highlighted the value of partnerships with state and local agencies and underscored the importance of leveraging collective resources and strengths to better protect our communities. Director Wray emphasized that law enforcement is more effective when everyone is working together and thanked our partners for their unwavering resolve in the face of challenging situations. DEA Administrator Milgram focused on the work she leads to defeat drug cartels responsible for large numbers of deaths due to fentanyl and other opioid trafficking. ATF Director Dettelbach talked about the partnerships ATF has with law enforcement officers across the country to get ghost guns off the streets. USMS Director Davis spoke about the recent success of the USMS-led high-impact fugitive apprehension initiative called Operation North Star III, where more than 4,400 violent fugitives were apprehended. He also emphasized the need for increased collaboration to address violent crime in not only major cities but also smaller jurisdiction and rural areas.
CRS Head Lock presented on CRS’ services and programs to assist communities responding to and preventing civil rights-based community tensions, bias incidents, and hate crimes.
The Justice Department will continue to support our partnerships with state, local, Tribal, and international law enforcement and to protect the American people.
Pittsburgh Resident Indicted on Charges of Violating Federal Firearms and Narcotics LawsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearm and narcotic laws, United States Attorney Eric G. Olshan announced today.
The five-count Superseding Indictment named Maurice White Jr., age 22, formerly of Pittsburgh, Pennsylvania, as the sole defendant.
According to the Superseding Indictment, on September 21, 2022, White Jr. knowingly possessed with intent to distribute a quantity of fentanyl and a quantity of cocaine base, Schedule II controlled substances. Additionally, on the same day, White Jr., possessed a firearm and ammunition as a convicted felon in furtherance of a drug trafficking crime.
The law provides for a maximum total sentence of not more than 15 years in prison, a fine of no greater than $250,000, a term of supervised release of not more than 3 years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Katherine C. Jordan is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the Superseding Indictment in this case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department 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.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owners of timeshare resale company sentenced to federal prison for defrauding over 8,000 victims out of $18 millionRead the Press Release
ATLANTA – Jess Kinmont and John P. Wenz, Jr. have been sentenced for operating a timeshare resale scam business that affected more than 8,000 victims nationwide, many of them elderly. The victims lost more than $18 million based on the defendants’ false promises that they could help timeshare owners sell or rent their timeshare properties.
“The defendants monetized their clients’ trust to commit a multi-state fraud scheme that enabled them to steal millions of dollars from more than 8,000 victims, including many seniors who were particularly misled by the defendants’ false promises,” said U.S. Attorney Ryan K. Buchanan. “Kinmont and Wenz solicited hefty up-front fees based on fraudulent representations that they would sell and rent the victims’ timeshare properties. Their sentences demonstrate that federal law enforcement will not cease to prosecute those who commit fraud of this type.”
“For years, Kinmont and Wentz ran the scam without once selling a timeshare interest, only a series of lies,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Exploitation like this has a crippling effect on victims. The FBI and our partners will continue to pursue financial fraudsters who exploit anyone for personal and financial gain.”
“Kinmont and Wenz deserve their time in federal prison for deceiving elderly Americans trying to get out of timeshares” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Kinmont and Wenz lined their pockets by scamming thousands of victims, and we’ll continue to target fraudsters who prey on the American public with the help of our law enforcement partners.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between January 2012 through December 2016, Kinmont and Wenz operated Pro Timeshare Resales, a timeshare resale business. The defendants hired callers and developed scripts for those callers to use in targeting timeshare property owners to defraud.
Using the scripts, the defendants and others acting at their direction called timeshare owners and falsely claimed that Pro Timeshare Resales had a buyer or renter ready and willing to buy or rent their properties for a specific price. The defendants also falsely promised to sell the timeshares quickly, sometimes within a specific time period. But Kinmont and Wenz’s representations and promises were false. In reality, they never sold a single timeshare interest during the five years of the scheme’s operation.
Kinmont and Wenz charged timeshare property owners up to $2,500 in advance while lying and failing to deliver on their promises. Even after the timeshare owners paid the advance fee, Kinmont and Wenz strung some timeshare owners along with additional false claims. For instance, the defendants assured owners that they would soon receive the proceeds from a sale or rental, and often convinced the owners to pay additional purported closing costs or other fees as a part of these fake transactions. Consumers’ requests for refunds were typically denied or ignored. Together, Kinmont and Wenz defrauded at least 8,000 victims of more than $18 million. The district court judge noted at sentencing that the defendants’ fraud scheme was “breathtaking” in scope.
On October 12, 2023, Jess Kinmont, 57, of Port Orange, Florida, was sentenced by Chief Judge Timothy C. Batten, Sr. to seven years in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $11,699,376.60. The sentence was imposed following Kinmont’s guilty plea to wire fraud conspiracy on April 5, 2023.
On October 12, 2023, John P. Wenz Jr., 43, of Palm Coast, Florida, was sentenced by Chief Judge Timothy C. Batten to three years, 10 months in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $4,845,425.88. The sentence was imposed following Wenz’s guilty plea to wire fraud conspiracy on April 1, 2021.
This case was investigated by the Federal Bureau of Investigation with valuable assistance from the Federal Trade Commission. The FTC previously prosecuted a civil fraud case against the defendants in the U.S. District Court for the Middle District of Florida.
Assistant U.S. Attorneys Bernita B. Malloy and Jesika W. French prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Organized Crime Drug Enforcement Task Force Operations Lead to Lengthy Federal Prison Sentences for Two MenRead the Press Release
LAFAYETTE/ALEXANDRIA, La. – United States Attorney Brandon B. Brown announced that two men involved in the trafficking of methamphetamine have been sentenced. Joseph R. Johnson and Isidro Chavarria were each indicted by a federal grand jury as a result of two separate Organized Crime Drug Trafficking Task Force operations.
Joseph R. Johnson, 44, of New Iberia, Louisiana, was sentenced by United States District Judge Robert R. Summerhays to 157 months (13 years, 1 month) in prison, followed by 5 years of supervised release. Johnson pleaded guilty on April 27, 2023, to one count of conspiracy to distribute and possess with intent to distribute methamphetamine. In 2020, law enforcement agents with the Drug Enforcement Administration (“DEA”) began investigating a drug trafficking organization operating in the Lafayette area and being supplied by Johnson. Through their investigation, agents learned that Johnson frequently traveled from southern California to Louisiana for the purposes of distributing narcotics. Johnson also often used the mail to transport narcotics and proceeds to and from California, Louisiana, Iowa, and South Carolina. Agents applied for and were granted authorization to intercept Johnson’s wire communications in 2021. During this interception time, agents were able to identify multiple co-conspirators who were assisting Johnson in the trafficking of methamphetamine. Through their investigative efforts, law enforcement agents were able to locate and seize multiple packages containing methamphetamine which were being shipped to and from multiple co-conspirators involved in the drug trafficking organization. Agents also identified and intercepted a vehicle transporting narcotics on behalf of Johnson and located over 30 pounds of methamphetamine concealed inside. Johnson admitted to willfully conspiring with his co-defendants in this case when he pled guilty to the charge.
This case was investigated by the Drug Enforcement Administration, Department of Homeland Security Investigations, Louisiana State Police and New Iberia Police Department and prosecuted by Assistant United States Attorneys Daniel J. Vermaelen and J. Aaron Crawford.
Isidro Chavarria, 42, a federal prison inmate, was sentenced by United States District Judge Dee D. Drell to 120 months (10 years) in prison, followed by 5 years of supervised release. Beginning in January 2021, law enforcement agents began an investigation of a federal inmate at FCI Pollock who was believed to be coordinating large scale drug distribution while in prison. Agents were made aware that contraband phones were being smuggled into the prison in order to communicate with Cartel members and other individuals involved in the drug conspiracy. Through their investigation, agents obtained evidence that Chavarria was communicating with his co-conspirators on these contraband phones and in fact, was directing his wife and other parties to distribute methamphetamine that his co-conspirator was sending her. Chavarria pleaded guilty on April 4, 2023, to one count of conspiracy to distribute and possess with intent to distribute methamphetamine.
At the time of this offense, Chavarria was serving a 210-month federal prison sentence for drug distribution offense from 2019. This sentence will run consecutive to the sentence he was serving.
This case was investigated by the Federal Bureau of Investigation and United States Postal Inspection Service and prosecuted by Assistant United States Attorney J. Aaron Crawford.
The investigation and conviction of both Johnson and Chavarria and their co-defendants is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
# # #
Operation Smoke and Mirrors Update: Kanawha County Man Sentenced to Prison for Role in Methamphetamine Trafficking OrganizationRead the Press Release
CHARLESTON, W.Va. – Nicholas Bradford Confere, 35, of Mammoth, was sentenced today to three years and one month in prison, to be followed by one year of supervised release, for using a communications facility to facilitate a drug trafficking offense. Confere admitted to his role in a drug trafficking organization (DTO) that operated in the Charleston area.
According to court documents and statements made in court, on December 4, 2022, Confere used a land line telephone in Mammoth to arrange the purchase of methamphetamine from a co-defendant. During the call, Confere informed the co-defendant that other third-party individuals also had money to purchase methamphetamine from the co-defendant. The arranged meeting took place and Confere obtained a quantity of methamphetamine from the co-defendant.
Confere admitted that he obtained this methamphetamine partially on consignment, meaning he was expected to pay the co-defendant after he sold the methamphetamine. Confere further admitted to using a cellular phone to inform the co-defendant that he had sold the methamphetamine that he obtained, and therefore had the money to pay the co-defendant.
Confere is among 32 individuals indicted as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 400 pounds of methamphetamine as well as 40 pounds of cocaine, 3 pounds of fentanyl, 19 firearms and $935,000 in cash.
Twenty-one of the defendants have pleaded guilty. Indictments against the other defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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. 2:23-cr-68.
###
Ontario county man going to prison on child pornography chargesRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Eric Passalacqua, 37, of Phelps, NY, who was convicted of receipt and distribution of child pornography, was sentenced to serve 20 years in prison, 15 years of supervised release, and ordered to pay $21,000 in restitution by U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that on January 20, 2023, the FBI in Rochester received information from the FBI in Anchorage Alaska, that an individual located in Phelps, NY, may have been responsible for exchanging child pornography with an individual in Alaska. Subsequent investigation determined that individual was Passalacqua. On January 24, 2023, a search warrant was executed at Passalacqua’s Phelps residence. A forensic examination of his phone recovered over 600 images of child pornography, including images that Passalacqua produced depicting a minor victim. Passalacqua also admitted to producing images of another minor victim.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia and the Anchorage Office of the FBI, under the direction of Special Agent-in-Charge Antony A. Jung.
# # # #
Okeechobee man sentenced to 20 months in prison for being found in the United States after prior removalRead the Press Release
MIAMI – On Oct. 17, a federal district judge sentenced an Okeechobee man to 20 months in prison, followed by one year of supervised release, for being found in the United States after a prior removal, in violation of Title 8, United States Code, Section 1326(a).
Jose Lara-Santos, 54, was previously removed from the United States in 2017, and was found back in the United States early this year during an arrest in Okeechobee, Florida. Lara-Santos was previously convicted of Driving Under the Influence (DUI).
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Acting Field Office Director Liana J. Castano of the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), announced the sentence.
ICE ERO, Stuart Office, investigated the case. Assistant U.S. Attorney Christopher Hudock prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14019.
###
New Orleans Man Pleads Guilty to Hobbs Act Robbery ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on October 13, 2023, QUINCY JONES, a/k/a “Luck,” pled guilty to robbery in Counts 10 and 11 of the superseding indictment pending against him before the U.S. District Judge Jane Triche Milazzo.
Count 10 charges JONES with conspiring to interfere with commerce through robbery, in violation of Title 18, United States Code, Section 1951. Count 11 charges JONES with Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951.
As to Counts 10 and 11, JONES faces up to 20 years in prison, a fine of up to $250,000.00, and up to three years of supervised release. JONES also faces payment of a $100 mandatory special assessment fee. His sentencing is scheduled for January 10, 2024.
According to public documents, in 2019, the Federal Bureau of Investigation investigated a group for committing various violent crimes and illegal drug trafficking, primarily in New Orleans East and the Ninth Ward. Thereafter, JONES, along with nine others, were indicted, for conspiring to possess firearms, traffic drugs and commit armed robberies of drug dealers.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, and the St. Bernard Sheriff’s Office. Assistant United States Attorneys Maurice Landrieu of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crime Unit, are in charge of the prosecution.
New Jersey Real Estate Investor and Online Influencer Charged with Multimillion-Dollar Investment Fraud SchemeRead the Press Release
NEWARK, NJ. – A New Jersey real estate investor and influencer was arrested today for committing a multimillion-dollar Ponzi-like investment fraud scheme, U.S. Attorney Philip R. Sellinger announced.
Cesar Humberto Pina, 45, of Franklin Lakes, New Jersey, is charged by complaint with one count of wire fraud. He appear before U.S. Magistrate Judge Edward S. Kiel in Newark federal court and was release on $1 million secured bond with electronic monitoring.
“As alleged in the complaint, Pina exploited celebrity status and social media to develop a devoted following of potential victims. Promising returns that were too good to be true, Pina allegedly defrauded dozens of people of millions of dollars. Our office is committed to protecting the public from these schemes and prosecuting those who lie to investors for their own personal gain.”
U.S. Attorney Philip R. Sellinger
"Investment fraud is simply a crime of greed," U.S. Postal Inspector in Charge Christopher A. Nielsen of the U.S. Postal Inspection Service, Philadelphia Division, said. "In this case, Cesar Pina allegedly solicited dozens of individuals to provide him with millions of dollars to purchase and invest in residential properties. However, instead of sharing the profits, he defrauded his investors in a Ponzi scheme. Postal Inspectors will continue to work with our law enforcement partners to combat financial fraud and protect the American people.
“Plain and simple, the defendant ran a fraudulent scheme. They falsely represented the nature of their business and lied about potential investment returns to bilk unsuspecting victims out of millions,” Tammy Tomlins, Special Agent in Charge of IRS – Criminal Investigation Newark Field Office, said. “Today’s arrest highlights IRS Criminal Investigation and our law enforcement partners’ commitment to investigate and prosecute unlawful behavior.”
“We allege Pina offered a ridiculously high rate of return to investors, then took the millions he got and invested it in himself,” FBI – Newark Special Agent in Charge James E. Dennehy said. “History has proven time and again, Ponzi-schemes don't work. The pot of gold at the end of the rainbow eventually runs out. Investors take note – it’s your money, don’t let them steal it.”
According to documents filed in this case and statements made in court:
Pina partnered with a celebrity disc jockey and radio personality to conduct real estate seminars around the country. Through these seminars, self-promotional efforts, and other marketing strategies, Pina developed a significant social media following.
Starting in 2017, Pina began accepting investments from victim investors for the alleged purchase, remodel, and sale of specific real estate projects in New Jersey and other states. To induce his victims, Pina often promised 20 to 45 percent returns on investment within five months. But instead of using victims’ investments as promised, Pina engaged in a Ponzi-like scheme by commingling victim money, using new victim investments to pay off prior victims, and spending victim funds on personal expenditures. The investigation has revealed that Pina defrauded dozens of investors of millions of dollars.
The charge of wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross amount of any pecuniary gain that any persons derived from the offense or of any pecuniary loss sustained by any victims of the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; special agents and task force officers of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Christopher A. Nielsen, Philadelphia Division; special agents and task force officers of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked the Franklin Lakes Police Department for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Mark J. Pesce and Carolyn Silane of the Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
pina.complaint.pdfNew Haven Man Who Possessed Ghost Gun Sentenced to 54 Months in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that NIQUELLE LANDELIUS, 27, of New Haven, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 54 months of imprisonment, followed by three years of supervised release, for firearm and narcotics offenses.
According to court documents and statements made in court, on February 22, 2022, New Haven Police arrested Landelius after a court-authorized search of his Chatham Street residence revealed a loaded privately made 9mm semi-automatic pistol, which had no serial number or manufacturer information (“ghost gun”), and distribution quantities of crack cocaine and heroin.
Landelius’ criminal history includes state convictions for felony narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Investigators subsequently submitted to the National Integrated Ballistic Information Network (NIBIN) test-fired shell casings from the seized handgun. Analysis of the shell casings revealed that it matched shell casings that were recovered at two shooting incidents that occurred in New Haven on February 13, 2022.
Landelius has been detained since his arrest. On March 8, 2023, he pleaded guilty to one count of unlawful possession of ammunition by a felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the New Haven Police Department. This case was prosecuted by Assistant U.S. Attorney Stephanie T. Levick.
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.
New Castle Resident Indicted on a Charge of Violating Federal Consumer Product Tampering LawsRead the Press Release
PITTSBURGH, PA - A resident of New Castle, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal consumer product tampering laws, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Shane Jon-Paul White, age 41, of New Castle, PA, as the sole defendant.
According to the Indictment, between an unknown date and January 26, 2022, White, a former employee of McKesson Corporation, while working at the company’s New Castle Distribution Center, removed oxycodone hydrochloride tablets from bottles of Mallinckrodt-brand oxycodone hydrochloride 30 mg tablets and replaced them with aspirin, Tylenol or Refenesen tablets. After the oxycodone hydrochloride tablets were removed and replaced, the bottles were placed back in inventory at the McKesson distribution center before being transported to pharmacies, including Klein’s Pharmacy in Cuyahoga Falls, Ohio.
The law provides for a maximum total sentence of ten (10) years in prison, a fine of not more than $250,000 or both. 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.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The U.S. Food and Drug Administration 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.
Morgantown man sentenced to 10 years for federal drug crimeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lloyd Vaughn, age 28, of Detroit, Michigan, was sentenced to 10 years in federal prison for possession with intent to distribute methamphetamine.
According to court documents and statements made in court, Vaughn was working with several others to operate a drug trafficking organization from Detroit, Michigan, to Monongalia County. Investigators searched Vaughn’s storage unit in Morgantown and found more than a pound of methamphetamine.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government.
The Drug Enforcement Administration and the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Moldovan Charged, Arrested, and Extradited for Administration of Site Involved in the Illicit Sale of Compromised Computer CredentialsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg, along with Special Agent in Charge Kareem Carter of the IRS - Criminal Investigation Washington DC Field Office, and Special Agent in Charge David Walker of the FBI - Tampa Division, announces today the extradition and removal from the United Kingdom of Sandu Diaconu (31, Moldova) for crimes related to his administration of the E-Root Marketplace, a website that operated for years and was used to sell access to compromised computers worldwide, including servers belonging to companies and individuals in the United States. Diaconu had his initial appearance and arraignment before United States Magistrate Judge Thomas G. Wilson on October 16, 2023.
According to the indictment, Diaconu has been charged (along with a sealed co-defendant) with conspiracy to commit access device and computer fraud, wire fraud conspiracy, money laundering conspiracy, access device fraud, and computer fraud. If convicted on all counts, Diaconu faces a maximum penalty of 20 years in federal prison. The indictment also notifies Diaconu that the United States is seeking an order of forfeiture relating to the proceeds of and used in the charged criminal conduct.
Seizure orders were executed against the domain names of the E-Root Marketplace and a public takedown notice was issued at the end of 2020. Diaconu was arrested while attempting to leave the United Kingdom in May 2021. In September 2023, after Diaconu consented, the Westminster Magistrates’ Court ordered Diaconu to be extradited to the United States to face the outstanding charges.
According to court documents, the E-Root Marketplace operated across a widely distributed network and took steps to hide the identities of its administrators, buyers, and sellers. Buyers could search for compromised computer credentials on E-Root, such as RDP and SSH access, by desired criteria such as price, geographic location, internet service provider, and operating system. The Marketplace also used Perfect Money, an online payment system, to help conceal buyers’ payments. It also offered its illicit cryptocurrency exchange service for the purpose of converting Bitcoin to Perfect Money and vice-versa. This exchange was also seized.
Based on evidence obtained during the investigation, authorities believe that more than 350,000 compromised computer credentials were listed for sale on the Marketplace. The victims span the globe and all industries, including a variety of businesses and firms, as well as at least one local government agency in Tampa. Many victims were subject to ransomware attacks, and some of the stolen credentials listed on the Marketplace were linked to stolen identity tax fraud schemes.
The U.S. investigation was led by the IRS - CI Cyber Crimes Unit (Washington, D.C) and the FBI - Tampa Division. Substantial assistance was provided by the IRS-Criminal Investigation’s Tampa Field Office, the Department of Justice’s Office of International Affairs, IRS-CI and FBI International Operations at Mission UK, the United Kingdom’s National Extradition Unit, the United Kingdom’s Central Authority, and the United States Marshals Service, Tampa Field Office. The criminal investigation is being overseen by Assistant United States Attorneys Rachel Jones and Daniel Marcet. The asset forfeiture will be handled by Assistant United States Attorney Suzanne Nebesky.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Missouri Man Sentenced to 80 Years in Prison for Recording Rape of ChildrenRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Wednesday sentenced a man who recorded his rape of a young girl and an infant to 80 years in prison.
Mark Anthony Davis, 36, of Clark County, Missouri, pleaded guilty in May to two counts of production of child pornography and one count of possession of child pornography. He admitted recording his rape of the girl when she was under 10 years of age and an 11-month-old boy. Davis also admitted possessing videos containing child pornography, including the rape and torture of children.
Assistant U.S. Attorney Matt Drake, in court, said prosecutors and investigators have never seen a worse case. Davis possessed images of children being tortured and then repeatedly inflicted “hideous torture” on his own children. Davis’ behavior, Drake said, “deserves the most serious sentence possible.”
The sentence of 30 years each on the production of child pornography charges and 20 years on the possession charge, run consecutively, was the maximum possible prison sentence.
This case was investigated by the Clark County Sheriff’s Department, the Missouri State Highway Patrol, the Kirksville Police Department, the Henry County (Iowa) Sheriff’s Office, the FBI and Donya Jackson, an investigator with the U.S. Attorney’s office at the time. Assistant U.S. Attorneys Matt Drake and Robert Livergood prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Missouri Man Pleads Guilty to Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – Daniel Phillip Beckman, 46, of Watson, Missouri, pleaded guilty yesterday to receipt of child pornography.
According to court documents and statements made in court, on or about November 27, 2022, Beckman began communicating while at his Missouri residence with a minor female living within the Southern District of West Virginia through the Snapchat multimedia instant messaging application. During these Snapchat communications, Beckman offered to pay the minor female in exchange for her sending him nude images and videos of herself.
Beckman admitted that he paid the minor female approximately $625 through the CashApp mobile payment service in exchange for numerous images and videos that the minor female sent him using Snapchat. Some of these images showed the minor female’s vaginal area or depicted her masturbating. Beckman admitted that he believed the female to be a minor when he received her photos and videos, and that he saved several of the images to his phone.
On or about December 6, 2022, the minor female introduced Beckman to her friend, also a minor female. Beckman admitted that he began communicating with the other minor female on Snapchat and paid her through CashApp for several images and videos that depicted her nude pubic area. Beckman further admitted that he believed her to be a minor when he received the images, and that he specifically described to her how he wanted her to pose.
Beckman is scheduled to be sentenced on February 6, 2024, and faces a mandatory minimum of five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release, and a $250,000 fine. Beckman must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Department of Homeland Security-Homeland Security Investigations (HSI) and the West Virginia State Police.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-158.
###
Miami man sentenced to five and a half years in prison for running fraudulent cryptocurrency and stock investment schemeRead the Press Release
MIAMI – A Miami man was sentenced to 66 months in federal prison for running a fraudulent cryptocurrency and stock investment scheme. The judge also ordered forfeiture in the amount of $988,895.85.
From June 2020 through March 2022, Ryan James Crawford, aka “Brody,” 30, tricked victims into investing almost $1 million in his scheme by: falsely claiming to be a highly successful licensed stockbroker who had made tens of millions of dollars through similar cryptocurrency and stock investments; falsely claiming to have access to enough money to timely repay potential investors; falsely claiming that he had developed an artificial intelligence trading software that “never lost,” and misrepresenting the investment as low-risk and high reward, among other things.
Crawford did not return any victim funds, or generate the exponential returns he promised. Rather, on some occasions, he simply diverted investors’ funds and cryptocurrency for his own personal use, including to pay for luxury rental cars and gambling at the casino.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, Special Agent in Charge Rafael Barros of the U.S. Secret Service (USSS), Miami Field Office, and Interim Director Stephanie V. Daniels of the Miami-Dade Police Department (MDPD), announced the sentence.
FBI Miami, USSS Miami, and MDPD’s Cyber Crimes Investigative Unit investigated the case, with assistance from the Florida Office of Financial Regulation (OFR). Assistant U.S. Attorney Stephanie Hauser prosecuted the case. Assistant U.S. Attorneys Emily Stone and Mitch Hyman handled asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20100.
###
Man Sentenced for Role in Scheme to Defraud City of LexingtonRead the Press Release
LEXINGTON, Ky.— Nana Kawabena Amuah, 31, a native of Ghana, was sentenced to 86 months in federal prison on Wednesday, by U.S. District Judge Karen Caldwell, for conspiring to commit money laundering. Amuah was also ordered to pay $4,743,443.60 in restitution.
According to Amuah’s plea agreement, beginning in 2021, Amuah was directing a co-defendant, Shimea McDonald, to open bank accounts for receiving money from a variety of fraud victims. Amuah helped facilitate McDonald getting fake identity documentation, based on fake identity information she obtained from real people. McDonald also set up shell companies, which she then used to set up bank accounts with fake identities. Once money entered into these accounts, Amuah notified McDonald of the payments and directed her to wire or otherwise bring him the stolen funds, after McDonald had retained a portion for herself. Working with others, Amuah would then wire or otherwise bring money to the other co-conspirators, who facilitated further transfers or initiated the underlying scheme to defraud the victims, after retaining his portion of the proceeds.
In one instance, in August 2022, the conspirators impersonated a nonprofit organization, having business with the City of Lexington over email, and convinced a City official to wire funds owed to the non-profit organization to a bank account at Truist Bank. The City wired a total of $3,905,837.05 to the Gretson Company LLC bank account at Truist Bank. Prior to the August 2022 wire transfer, McDonald, using the identity of K.N., had requested eight counter checks from Truist Bank, which would be funded from wires fraudulently received from the City. Then, when the money was placed in the fraudulent account at Truist Bank, McDonald, using the identity of K.N., attempted to deposit a portion of these funds into another account in the name of Gretson Company LLC, at another financial institution.
Ultimately, Truist Bank and the City of Lexington were able to recover all the funds that were fraudulently transmitted. According to Court documents, investigators found approximately 70 other victims of this conspiracy, 60 of which did suffer losses amounting to more than $4.6 million. McDonald has been convicted for her role in the offense and is scheduled to be sentenced on December 14, 2023. A third defendant, Jean Mejia-Garcia, who attempted to deposit done on the City’s money, had been charged and is awaiting trial.
Under federal law, Amuah must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Lawrence Weathers, Chief of the Lexington Police, jointly announced the sentence.
The investigation was conducted by the FBI and Lexington Police. Assistant U.S. Attorney Kate Dieruf prosecuted the case on behalf of the United States.
– END –
Laurel felon sentenced to more than five years in prison for illegally possessing 34 firearms in his residenceRead the Press Release
BILLINGS — A Laurel man who admitted he illegally possessed firearms and ammunition after law enforcement found 34 firearms and thousands of rounds of ammunition in his residence was sentenced today to five years and eight months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Nicholas Steven Capella, 39, pleaded guilty in June to prohibited person in possession of a firearm and ammunition as charged in an indictment.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in August 2022, members of the Billings Police Department’s Street Crimes Unit were surveilling a residence in Laurel when Capella and another person left the house and got into a vehicle that was parked outside. Capella had a pistol holstered on his hip. Officers converged on the vehicle and placed Capella and the other person in custody. A search warrant was executed at the residence, and Capella agreed to open a gun safe, which contained a large cache of firearms, including assault style rifles with high-capacity magazines. Law enforcement seized approximately 34 firearms and thousands of rounds of ammunition. Capella was prohibited from possessing firearms because of felony convictions in Washington.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case. The Billings Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
XXX
KC Man Sentenced to 30 Years for Conspiracy to Commit Armed Robberies of Local BusinessesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to commit a series of armed robberies of local businesses in the summer of 2018, as well as an armed robbery in which a convenience store employee was beaten and fatally shot.
Louis Candler, 27, was sentenced by U.S. District Judge Roseann Ketchmark to 30 years in federal prison without parole.
On May 30, 2023, Candler pleaded guilty to three counts of aiding and abetting a robbery, one count of conspiracy to commit robbery, and one count of aiding and abetting the possession of a firearm during a violent crime.
Candler admitted that he participated in a conspiracy to commit multiple armed robberies from June 1 to July 18, 2018. Candler admitted that he and co-defendant Joe Lee Nichols, 30, of Kansas City, Mo., committed two armed robberies at Kansas City, Mo., hotels on July 14, 2018 – Wood Springs Suites, 11301 Colorado Avenue, and Arrowhead Inn, 6006 E. 31st Street.
Candler also admitted that he and Nichols committed an armed robbery in which a store clerk was killed at Inner City Oil convenience store, 5901 Swope Parkway in Kansas City, Mo., on July 16, 2018.
Video surveillance shows Nichols pointed a handgun at an employee of Inner-City Oil, who resisted and engaged in a struggle for Nichols’s firearm. Nichols fired his gun multiple times before the employee fell to the floor. The employee then retrieved a handgun and began to fire back at Nichols. Nichols began to stomp and kick at the head and body of the employee, who was still lying on the floor. The employee lost his firearm, which was recovered by Candler, who then used it to also shoot the store clerk. When they were unable to access the cash register, Nichols and Candler left the store. The employee can be seen on the surveillance video, still moving while lying on the floor, until eventually becoming motionless when he died from his injuries. A witness who saw their car leaving the area and discovered the body of the employee immediately called 911.
Candler is the sixth and final defendant to be sentenced in this case. Nichols was sentenced on Feb. 22, 2023, to 45 years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Maureen Brackett and former Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department, and agents and task force officers of the FBI.
KC Man Indicted After Officers Found 29 Firearms, Fentanyl and MethRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was indicted by a federal grand jury today after law enforcement officers found 29 firearms in his residence, along with significant amounts of fentanyl and methamphetamine.
Charles J. Dunne, 60, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Dunne on Sept. 20, 2023. Dunne remains in federal custody without bond.
Today’s indictment charges Dunne with one count of possessing fentanyl and methamphetamine with the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of being a felon in possession of firearms.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Dunne has multiple felony convictions including a prior federal felony conviction for conspiracy to manufacture methamphetamine.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers executed a search warrant at Dunne’s residence on Sept. 19, 2023. Officers found a black backpack in Dunne’s bedroom that contained 415.6 grams of powder fentanyl and 1.5782 kilograms of methamphetamine. Under the backpack, says the affidavit, officers found two handguns. Officers also found several other firearms in the bedroom, including a shotgun, an AR-15 rifle, and a sawed-off short-barreled shotgun.
In a second bedroom, according to the affidavit, officers found another large supply of firearms, including additional AR-15-style rifles, shotguns, hunting rifles and handguns. Officers found several more handguns in a third bedroom. Officers also found an additional 774.9 grams of a substance believed to be fentanyl. In total, officers found 29 firearms and approximately $16,000 in cash.
During the search, the affidavit says, Dunne began to experience a medical emergency consistent with a fentanyl overdose. EMS responded and a total of 12 doses of naloxone were administered at the scene and during transport of Dunne to the hospital.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Megan A. Baker. It was investigated by the Jackson County Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, and the Drug Enforcement Administration.
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 Announces Court-Authorized Action to Disrupt Illicit Revenue Generation Efforts of Democratic People’s Republic of Korea Information Technology WorkersRead the Press Release
On Oct. 17, pursuant to a court order issued in the Eastern District of Missouri, the United States seized 17 website domains used by Democratic People’s Republic of Korea (DPRK) information technology (IT) workers in a scheme to defraud U.S. and foreign businesses, evade sanctions and fund the development of the DPRK government’s weapons program. These seizures follow the previously sealed October 2022 and January 2023 court-authorized seizures of approximately $1.5 million of the revenue that the same group of IT workers collected from unwitting victims as a result of their scheme, as well as the development of public-private information-sharing partnerships that denied the IT workers access to their preferred online freelance work and payment service providers.
“The seizures announced today protect U.S. companies from being infiltrated with North Korean computer code and help ensure that American businesses are not used to finance that regime’s weapons program,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice is committed to working with private sector partners to protect U.S. business from this kind of fraud, to enhance our collective cybersecurity and to disrupt the funds fueling North Korean missiles.”
“Today's seizures exemplify our commitment to working with our federal and international partners to recognize and disrupt the threat from illicit actors working on behalf of the Democratic People’s Republic of Korea,” said Assistant Director Bryan Vorndran of the FBI's Cyber Division. “These takedowns also serve as reminders to ensure that our private sector partners are equipped and prepared with due diligence measures to prevent the inadvertent hiring of these bad actors across American businesses. The FBI encourages U.S. companies to report suspicious activities, including any suspected DPRK IT worker activities, to your local FBI field office.”
“Employers need to be cautious about who they are hiring and who they are allowing to access their IT systems,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “You may be helping to fund North Korea’s weapons program or allowing hackers to steal your data or extort you down the line.”
“The Democratic People’s Republic of Korea has flooded the global marketplace with ill-intentioned information technology workers to indirectly fund its ballistic missile program. The seizing of these fraudulent domains helps protect companies from unknowingly hiring these bad actors and potentially damaging their business,” said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. “This scheme is so prevalent that companies must be vigilant to verify whom they're hiring. At a minimum, the FBI recommends that employers take additional proactive steps with remote IT workers to make it harder for bad actors to hide their identities. Without due diligence, companies risk losing money or being compromised by insider threats they unknowingly invited inside their systems.”
As alleged in court documents, the Government of the Democratic People’s Republic of Korea (DPRK) dispatched thousands of skilled IT workers to live abroad, primarily in China and Russia, with the aim of deceiving U.S. and other businesses worldwide into hiring them as freelance IT workers, in order to generate revenue for its weapons of mass destruction (WMD) programs. Through this scheme, which involves the use of pseudonymous email, social media, payment platform and online job site accounts, as well as false websites, proxy computers located in the United States and elsewhere, and witting and unwitting third parties, the IT workers generated millions of dollars a year on behalf of designated entities, such as the North Korean Ministry of Defense and others, directly involved in the DPRK’s UN-prohibited WMD programs.
In some instances, the IT workers also infiltrated the computer networks of unwitting employers to steal information and maintain access for future hacking and extortion schemes. The U.S. government described this scheme in a May 2022 advisory. An update to that advisory, issued today, is available here.
Certain DPRK IT workers designed the 17 website domains seized yesterday to appear as domains of legitimate, U.S.-based IT services companies, thereby helping the IT workers to hide their true identities and location when applying online to do remote work for U.S. and other businesses worldwide. In reality, this specific group of DPRK IT workers, who work for the PRC-based Yanbian Silverstar Network Technology Co. Ltd. and the Russia-based Volasys Silver Star, had previously been sanctioned in 2018 by the Department of the Treasury. These IT workers funneled income from their fraudulent IT work back to the DPRK through the use of online payment services and Chinese bank accounts.
The efforts to disrupt the DPRK IT worker threat are not limited to those of the U.S. government. Since 2022, the United States has partnered with the Republic of Korea (ROK) to provide threat information about fraudulent DPRK IT worker activity, primarily consisting of thousands of indicators (e.g., email addresses), to multiple U.S.-based online freelance work and payment service platforms used by the IT workers. These information-sharing efforts include a May 2023 symposium, jointly hosted by the U.S. Department of State and the ROK, where representatives from the United States and ROK, and the providers, jointly discussed efforts to enhance public-private partnerships to counter the DPRK IT worker threat. These private companies later informed the U.S. government that, armed with that threat information, they conducted independent investigations, improved their fraud detection mechanisms and, according to at least some of the providers, shut down thousands of additional, previously unidentified fraudulent accounts used by the same DPRK IT workers.
The National Security Division’s National Security Cyber Section and the U.S. Attorney’s Office for the Eastern District of Missouri are investigating this case. The FBI’s St. Louis Field Office conducted the investigation, with the assistance of the FBI Cyber Division.
Affidavit and Application for Seizure - $397k ; Affidavit and Application for Seizure - 12 Domain Names Affidavit and Application for Seizure - $1.1 million ; Affidavit and Application for Seizure - 5 Domain Names ;Joran van der Sloot Pleads Guilty and Is Sentenced for Extortion and Wire FraudRead the Press Release
BIRMINGHAM, Ala. – Dutch citizen Joran van der Sloot pleaded guilty today and was sentenced for his role in a scheme to obtain $250,000 from Elizabeth (“Beth”) Ann Holloway, the mother of Natalee Holloway, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton Peeples.
The guilty plea and sentencing of Joran Andreas Petrus van der Sloot, 36, occurred before U.S. District Court Judge Anna M. Manasco. Van der Sloot pleaded guilty to extortion and wire fraud and was sentenced to 20 years in prison.
According to the plea agreement, in 2010, van der Sloot solicited money from Beth Holloway, Natalee Holloway’s mother, on promises he would reveal the location of her daughter’s remains in Aruba and the circumstances of her 2005 death. However, after being paid a total of $25,100, van der Sloot provided information that he later described as “worthless.”
According to the sentencing memorandum and plea agreement, van der Sloot agreed to provide full, complete, accurate, and truthful information regarding Natalee Holloway’s disappearance in exchange for a sentence of 20 years.
“Today, the United States held Joran van der Sloot accountable for his scheme to exploit a mother looking for information about her missing daughter,” U.S. Attorney Escalona said. “The United States hopes that the information regarding Natalee Holloway’s disappearance provides some important answers for the family and the community that has followed this family’s tragedy. Today’s result would not have been possible without the help of the FBI, Department of Justice’s Office of International Affairs, and the Government of Peru, the Netherlands and Aruba, U.S. Marshals Service, and Shelby County Sherriff’s Office, who assisted in this process. I am grateful for their hard work and dedication. May this long-awaited day finally bring justice for Beth and for Natalee’s family and friends.”
“Today’s sentence holds Joran van der Sloot accountable for the pain he has caused the family and friends of Natalee Holloway,” said FBI Birmingham SAC Carlton Peeples. “After more than a decade of uncertainty, hopefully this will bring them and this community some closure. During this lengthy investigation, the FBI remained committed in aggressively pursuing and holding this individual accountable for the crimes he committed against US persons. I would like to thank our local, state, federal, and foreign partners who assisted in this investigation and a special thanks to all the FBI personnel, past and present, who worked tirelessly in bringing this individual to justice.”
The FBI investigated the case. Criminal Chief Lloyd C. Peeples and Assistant U.S. Attorney Catherine L. Crosby prosecuted the case.