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12 October 2023
Catoosa Resident Pleads Guilty to Tax FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Pamela Kathryn Conley, age 61, of Catoosa, Oklahoma, entered a guilty plea to one count of Aiding and Assisting in the Preparation of False Income Tax Returns, which is punishable by up to three years of incarceration and a $250,000 fine.
According to investigators, between 2017 and 2020, Conley aided and assisted in the preparation and presentation of false and fraudulent IRS Form 1040 tax returns on behalf of her clients, resulting in fraudulent refunds. Conley fabricated deduction amounts for clients that were unsupported by receipt evidence, including claims for medical expenses, charitable contributions, casualty theft losses, real property and personal property taxes, and job-related expenses, all of which Conley knew to be materially false and fraudulent.
The charges arose from an investigation by the IRS-Criminal Investigations, with assistance from the United States Secret Service.
The Honorable Gerald L. Jackson, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea, and ordered the completion of a presentence investigation report. Conley is currently in federal custody, serving a sentence imposed by the United States District Court for the Northern District of Oklahoma for other criminal conduct.
Special Assistant United States Attorney Michael Pahl and Assistant United States Attorney Kara Traster represented the United States.
California man sentenced to federal prison for role in health care kickback conspiracyRead the Press Release
TEXARKANA, Texas – A Temecula, California, man has been sentenced to federal prison for conspiring to commit health care kickbacks, announced U.S. Attorney Damien M. Diggs today.
Steven Donofrio, 49, was found guilty by a jury on May 5, 2023, following a two-week-long trial. Donofrio was sentenced to 42 months in federal prison by U.S. District Judge Robert W. Schroeder, III on October 11, 2023.
“Donofrio leveraged the access, influence, and relationships that his employees wielded to secure physicians’ referrals. He added costs, not value, to an overburdened, taxpayer-funded system. The taxpayers deserve better,” said U.S. Attorney Damien M. Diggs. “Today’s sentence sends the clear message that no matter who you are, if you do wrong, you will be found out, and you will be brought to justice.”
“While this health care fraud scheme appeared complex on the surface, it was simple greed and theft at its core,” said Jason E. Meadows, Special Agent in Charge of the United States Department of Health and Human Services Office of Inspector General (HHS-OIG). “Illegal kickback payments lead to unnecessary medical procedures and cost taxpayers millions of dollars. HHS-OIG will continue to work with our law enforcement partners to hold accountable those who blatantly steal taxpayer money for their personal benefit.”
“Today’s sentence brings a conclusion to an illegal kickback scheme that defrauded our health care system for millions of dollars. The defendant and his co-conspirators enriched themselves and in turn affected the quality of care of innocent taxpayers,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “The FBI is committed to working with our law enforcement, public, and private sector partners to combat health care fraud and seek justice for the patients that are harmed because of these schemes.”
According to information presented in court, Donofrio conspired with others to pay and receive kickbacks in exchange for the referral of, and arranging for, health care business, specifically pharmacogenetic (PGx) tests. Pharmacogenetic testing, also known as pharmacogenomic testing, is a type of genetic testing that identifies genetic variations that affect how an individual patient metabolizes certain drugs. The illegal arrangement concerned the referral of PGx tests to clinical laboratories in Fountain Valley, California; Irvine, California; and San Diego, California. More than $28 million in illegal kickback payments were exchanged by those involved in the conspiracy.
In December 2019, twelve individuals from three states were charged for their roles in the kickback conspiracy. A federal grand jury in the Eastern District of Texas returned an indictment against Philip Lamb, of Eagle, Colorado; Nicolas Arroyo, of Tempe, Arizona; Vincent Marchetti, Jr., of Coronado, California; William Flowers, of Houston, Texas; Steven Donofrio; James J. Walker, Jr. a/k/a Jimmy Walker, of Frisco, Texas; Timothy Armstrong, deceased, formerly of Frisco, Texas; Virginia Blake Herrin, of Frisco, Texas; Patrick Ridgeway, of Jackson, Mississippi; Chismere Mallard, of McAllen, Texas; Dr. Ray W. Ng, of Dallas, Texas; and Ashley Kretzschmar, of Aledo, Texas; for conspiring to commit illegal remunerations in violation of the Anti-Kickback Statute.
Philip Lamb, Nicolas Arroyo, Jimmy Walker, Timothy Armstrong, Virginia Blake Herrin, Patrick Ridgeway, Chismere Mallard, and Ashley Kretzschmar pleaded guilty prior to trial. Kimberly Willette, of Friendswood, Texas, and Edwin Chad Isbell, of Atascocita, Texas also pleaded guilty to related charges.
Vincent Marchetti, Jr., was found guilty by a jury on December 16, 2021, following a month-long trial. He was sentenced to 48 months in federal prison on August 30, 2022.
On April 25, 2022, Nicolas Arroyo was sentenced to 21 months in federal prison. On August 23, 2022, Kimberly Willette was sentenced to one year and one day in federal prison, and Patrick Ridgeway was sentenced to a three-year term of probation and ordered to pay a $100,000 fine. On September 11, 2023, Jimmy Walker was sentenced to five months in federal prison and ordered to pay a $50,100 fine.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remunerations in exchange for the referral of or arranging for or recommending the ordering of items or services payable under federal health care programs. Under federal statutes, violations of the Anti-Kickback statute are punishable by up to five years in federal prison.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the FBI Dallas – Frisco Resident Agency. It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld, Lucas Machicek, and Adrian Garcia, with assistance from Assistant U.S. Attorneys Stephan E. Oestreicher, Jr., Brent Andrus, and L. Frank Coan, Jr., and Special Assistant U.S. Attorney Laurel E.P. Simmons.
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California Attorney Sentenced for Selling Unregistered SecuritiesRead the Press Release
BOSTON – A California attorney was sentenced today in federal court in Boston in connection with the illegal sale of over $1.3 million worth of unregistered shares of a Massachusetts-based health care company.
Daniel V. Martinez, 64, of Yuba City, Calif., was sentenced by U.S. District Court Judge Patti B. Saris to one year of probation and 100 hours of community service. Martinez was also ordered to pay a fine of $7,500 and forfeit $110,999. In December 2022, Martinez pleaded guilty to one count of sale of unregistered securities.
Between 2013 and 2016, Martinez served as a real-estate attorney for Avtar Singh Dhillon, who was then chairman of the Massachusetts-based biotechnology company, Arch Therapeutics, Inc. Dhillon and Martinez placed 2.75 million Arch Therapeutics shares that Dhillon beneficially owned into a limited liability company that Martinez created and for which Martinez was the sole manager. At Dhillon’s direction, Martinez then sold the shares in the open market without a valid exemption under the relevant securities laws and distributed the approximately $1.34 million in proceeds. Martinez distributed the proceeds primarily to third parties for Dhillon’s benefit, taking a small portion directly for himself.
In December 2022, Dhillon pleaded guilty to one count of willful failure to disclose stock sales, one count of aiding and abetting the sale of unregistered securities and one count of touting compensation nondisclosure conspiracy. He is scheduled to be sentenced on May 23, 2024.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office made the announcement. Valuable assistance was provided by SEC’s headquarters and Boston regional office. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
CEO Pleads Guilty to Transnational Scheme Involving Foreign Exchange and Cryptocurrency Futures ContractsRead the Press Release
A former chief executive officer of an investment firm pleaded guilty yesterday to a “cherry-picking” scheme, in which he fraudulently misappropriated profitable trades to himself, and saddled his investors with losses.
According to court documents, Peter Kambolin, 48, a U.S.-Russian national of Sunny Isles Beach, Florida, was the owner and chief executive officer of Systematic Alpha Management LLC (SAM), an investment firm that Kambolin marketed as offering algorithmic trading strategies involving futures contracts. Between January 2019 and November 2021, Kambolin, who at the time was a commodity trading advisor and a commodity pool operator, engaged in a cherry-picking scheme in which he fraudulently allocated profits and losses from futures trades in a manner designed to benefit his own accounts unfairly at the expense of his clients. Kambolin also misrepresented to his clients that SAM employed trading strategies focused on cryptocurrency futures contracts and foreign exchange futures contracts, when in reality, approximately half of Kambolin’s trading in each pool involved equity index futures contracts. In doing so, Kambolin defrauded investors located in the United States and abroad by, among other things, depriving them of profitable trades. Kambolin used the proceeds of the scheme to fund personal expenses, including rent for a beachfront apartment, and transferred proceeds to foreign bank accounts his co-coconspirator controlled in Belarus and Dominica.
“The defendant breached client trust for personal profit,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “This conduct undermines investor confidence in the commodities markets. This plea demonstrates that the Justice Department will not allow financial advisors to place their self-interest ahead of clients, including by cherry-picking trades. It also underscores the Justice Department’s commitment to using data analytics to prosecute wrongdoing in the financial markets.”
During the relevant period, Kambolin executed trades for pool participants together with trades he executed on behalf of his proprietary accounts, and fraudulently allocated the profits and losses of the trades to benefit his own accounts.
“Yesterday’s plea recognizes the importance of holding the defendant accountable for his actions in misleading and defrauding investors through a cherry-picking scheme, and using proceeds from the scheme to fund his own personal lifestyle,” said Assistant Inspector General for Investigations Shimon R. Richmond of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “The FDIC-OIG remains committed to working with our law enforcement partners to protect investors and the nation’s banking system from individuals who commit such egregious financial crimes.”
Kambolin pleaded guilty to conspiracy to commit commodities fraud. He faces a maximum penalty of five years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FDIC-OIG is investigating the case. The Commodity Futures Trading Commission previously charged Kambolin and SAM by complaint.
Trial Attorney Matt Kahn of the Criminal Division’s Fraud Section is prosecuting the case.
CEO of Company Providing Homes for Parolees and Probationers Sentenced to 17 Years in Prison for Bank Fraud, Wire Fraud, Witness Tampering, and Other OffensesRead the Press Release
OAKLAND – Attila Colar, aka Dahood Sharieff Bey, aka Sharieff Dahood Bey, aka Sharieff Pasha, aka David Lee, aka Georgi Petrakov, was sentenced to serve 204 months (17 years) in prison after being convicted of forty-four (44) felonies including conspiracy, bank fraud, wire fraud, aggravated identity theft, false statements to a bank, destruction of property to prevent a search, possession of a firearm as a felon, making a false tax return, obstruction, and witness tampering. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge.
Colar, 51, of Richmond, Calif., was convicted of the crimes by a jury on June 23, 2023, after a three-week trial. Colar is the former Chief Executive Officer of All Hands on Deck, a Richmond, Calif., company that held itself out as providing a residential reentry home for probationers, parolees, homeless persons, and persons with mild mental illness. In finding him guilty of the sundry crimes, the jury concluded Colar carried out multiple schemes to defraud, including defrauding organizations that placed residents at his company’s transitional housing facilities and defrauding several lenders that were participating in the Paycheck Protection Program (PPP). The jury also found that Colar attempted to destroy evidence, obstructed the FBI’s and grand jury’s investigations into his crimes, and tampered with a witness by attempting to concealing the witness while law enforcement was taking steps to execute a material witness order.
“In the wake of a national crisis, the government established programs, including the Paycheck Protection Program, to ease the pain inflicted by a global pandemic,” said Ismail J. Ramsey, United States Attorney for the Northern District of California. “Colar took this opportunity to defraud the government, while also defrauding several other initiatives intended to help the homeless, newly released prisoners, and those with drug problems, to name just a few of his victims. This sentence should serve as a warning that this office will pursue with vigor those who seek to line their own pockets by defrauding government efforts to address our communities’ needs.”
“Colar is now facing the consequences for his attempt to steal from a taxpayer-funded program designed to offer crucial relief to those businesses affected during the pandemic,” said Robert K. Tripp, Special Agent in Charge, San Francisco Field Office, Federal Bureau of Investigation. “We are proud to have worked in close coordination with our federal partners to ensure justice prevailed in this case.”
“This sentencing sends a clear warning that you will be brought to justice if you defraud the federal government of pandemic relief funds,” said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to hold Mr. Colar accountable for his crimes.”
“Abusing SBA’s pandemic relief programs that are intended to provide critical relief to small businesses is unconscionable.” said SBA OIG’s Western Region Special Agent in Charge Weston King. “This sentencing further showcases that those who fraudulently take advantage of federal government programs will face justice for their selfish deeds. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
“Mr. Colar attempted to defraud the U.S. government by filing multiple false tax documents to further his Paycheck Protection Program scheme. Along the way, he harmed the members of the community those funds are designed to aid and protect,” said IRS-Criminal Investigation Special Agent in Charge Darren Lian of the Oakland Field Office. “This sentencing reinforces that people who abuse the U.S. tax system and victimize taxpayers will be held accountable. IRS Criminal Investigation agents work closely with multiple agencies to help ensure those who choose to break the law are caught and punished. I would like to thank the United States’ Attorney’s Office’s and its federal partners for working together to achieve a just result.”
“When individuals corruptly obstruct the due administration of the Internal Revenue Code and file documents under false pretenses, they defraud and steal funds from taxpayer-funded programs intended to assist small businesses. TIGTA will always pursue these individuals and ensure they are prosecuted to the fullest extent of the law,” stated Special Agent in Charge Rod Ammari. “I want to thank our law enforcement partners and the U.S. Attorney’s Office for their joint efforts to hold these criminals accountable for their actions.”
Evidence at trial showed that starting in late 2018, Colar engaged in a scheme to defraud, among others, GEO Reentry, which provided treatment and supervision programs for adult probationers, parolees, and pretrial defendants in residential, in-custody, and non-residential reentry centers for the California Department of Corrections and Rehabilitation (CDCR). Specifically, in or about 2019, Colar fraudulently induced GEO Reentry to refer parolees to All Hands on Deck using falsified fire inspection clearance reports, a false letter of recommendation, false security clearance documents, and false and misleading information about its staff.
Additional evidence demonstrated that in April and June of 2020, Colar engaged in a second scheme to defraud lenders participating in the PPP lending plan authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was designed to provide emergency financial assistance to the millions of Americans who were suffering from the economic effects caused by the COVID-19 pandemic. Pursuant to the CARES Act, the SBA managed the PPP lending plan. Trial evidence established Colar submitted multiple loan applications on behalf of All Hands on Deck to lenders that were false and misleading. For example, the applications substantially overstated the number and payroll of All Hands on Deck employees—while Colar’s loan applications stated All Hands on Deck had approximately 73 to 81 employees, the business had, in fact, perhaps other than himself, no salaried employees.
Colar was also convicted of offenses related to the submission of multiple fraudulent loan applications in the name of other companies. The evidence demonstrated Colar hastily revived two dormant companies, and then submitted loan applications from the PPP lending plan for the bogus businesses. To carry out this scheme to defraud, Colar used, without legal authority, the names and identities of two persons living in his residential reentry facility. Colar falsely represented that the residents were “CEO”s of companies with hundreds of employees with million-dollar payrolls.
In all, the evidence at trial showed that Colar submitted a total of 16 fraudulent loan applications to the PPP lending plan seeking approximately $34,655,437 in PPP loans.
Colar also was convicted of obstruction and witness tampering relating to the investigations into his crimes. Colar has been found guilty of destroying documents during a search of his home, lying to the FBI about a firearm, falsifying records produced to the grand jury, interfering with the representation by counsel of a material witness by impersonating the witness’s Power of Attorney, coaching a witness to falsely state that the witness was the CEO of one of Colar’s bogus companies that submitted fraudulent loan applications, and concealing a witness in multiple hotels and other locations in the Bay Area to forestall or prevent the witness from providing testimony in the federal grand jury.
In sum, Colar was convicted of forty-four (44) federal criminal offenses for his conduct. The convictions include the following: one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; one count to commit conspiracy to commit bank fraud and wire fraud, in violation of 18 U.S.C. § 1349; two counts of bank fraud, in violation of 18 U.S.C. § 1344; sixteen counts of wire fraud, in violation of 18 U.S.C. § 1343; eight counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A; two counts of false statement to a bank, in violation of 18 U.S.C. § 1014; one count of possession of a firearm by a felon, in violation of 18 U.S.C. § 922(g); one count of destruction of property to prevent a search or seizure, in violation of 18 U.S.C. § 2232(a); one count of obstruction of justice, in violation of 18 U.S.C. § 1512(c)(2); two counts of falsification of records in a federal investigation, in violation of 18 U.S.C. § 1519; six counts of making a false tax return, in violation of 26 U.S.C. § 7206; one count of conspiracy to tamper with a witness, in violation of 18 U.S.C. § 1512(k); one count of tampering with a witness, in violation of 18 U.S.C. § 1512(b)(1); and one count of tampering with a witness, in violation of 18 U.S.C. § 1512(b)(2).
In addition to the prison term, Judge Gilliam also ordered Colar to serve 60 months (five years) of supervised release, to begin after his prison term. Restitution will be determined at a later date. Colar is currently in federal custody and will begin serving his prison term immediately.
Assistant U.S. Attorneys Barbara J. Valliere, Adam A. Reeves, and Ross D. Mazer are prosecuting the case with the assistance of Paralegal Specialist Laurie Worthen and Legal Assistant Kathy Tat. The prosecution is the result of an investigation by the FBI, IRS-Criminal Investigation, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, Internal Revenue Service: Criminal Investigation, Treasury Inspector General for Tax Administration, and Office of Inspector General for the U.S. Small Business Administration.
Businessman Sentenced to Five and a Half Years in Prison for Participating in Bribery Scheme with Former Illinois State LawmakerRead the Press Release
CHICAGO — A federal judge in Chicago has sentenced the manager of a sweepstakes gaming company to five and a half years in prison for participating in a bribery scheme with an Illinois state lawmaker.
In 2018 and 2019, JAMES T. WEISS paid thousands of dollars in bribes to then-Illinois State Representative Luis Arroyo. The bribes were paid from Weiss’s gaming company, Collage LLC, in the form of checks made payable to Spartacus 3 LLC, Arroyo’s private lobbying firm in Chicago. In exchange for those bribes, Arroyo promoted legislation in the Illinois General Assembly related to the sweepstakes industry and advised other state lawmakers to support the legislation.
In August 2019, Arroyo offered to have bribe payments made to an Illinois State Senator in return for the Senator’s support of sweepstakes-related legislation. As part of the scheme, Weiss agreed to conceal the bribe payments by making them appear as if they were for legitimate consulting work. Thereafter, in furtherance of this effort to conceal the bribes intended for the Senator, Weiss caused two checks totaling $5,000 to be delivered to the Senator. Each check was made payable to a fictitious third party and labeled as a consulting payment. Weiss later falsely told law enforcement that he had personally spoken to the fictitious third party.
Arroyo, who represented the 3rd District in the Illinois House of Representatives from 2006 to 2019, pleaded guilty to his role in the bribery scheme and was sentenced in 2022 to nearly five years in federal prison.
A federal jury in June convicted Weiss, 44, of River Grove, Ill., on fraud and false statement charges. U.S. District Judge Steven C. Seeger imposed the sentence Wednesday after a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The government was represented by Assistant U.S. Attorneys Christine M. O’Neill and Sean Franzblau.
Brookline Man Sentenced for Possessing Machine GunsRead the Press Release
BOSTON – A Brookline man was sentenced today for illegally possessing two privately made machine guns.
Stewart Silvestri, 24, was sentenced by U.S. District Court Judge Denise J. Casper to 42 months in prison. On July 19, 2023, Silvestri pleaded guilty to one count of unlawful possession of machine guns.
On Oct. 15, 2022, law enforcement responded to multiple calls about an erratic driver on Route 95 in Rowley, Mass., who had pulled into a weigh station. Upon arriving at the weigh station, law enforcement approached the driver – Silvestri – who stated he had just come from an armory in New Hampshire. While asking for his license and registration, Silvestri was observed sitting on what appeared to be firearms. A subsequent search of the vehicle recovered 14 privately made firearms (also known as ghost guns), hundreds of rounds of ammunition and numerous firearm parts. Two of the firearms were fully automatic pistols, classified as machine guns.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Essex County District Attorney Paul F. Tucker made the announcement today. Assistant U.S. Attorney Philip C. Cheng of the Organized Crime & Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Box Elder man sentenced to 22 months in prison for assaulting partner on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Box Elder man who admitted to assaulting a woman on the Rocky Boy’s Indian Reservation was sentenced today to 22 months in prison, to be followed by two years of supervised release, U.S. Attorney Jesse Laslovich said.
Titus Lee Pedraza, 40, pleaded guilty in May to assault resulting in substantial bodily injury of a spouse, intimate or dating partner.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that on November 23, 2022, Pedraza was home with the victim, identified as Jane Doe, and the victim’s children. Jane Doe told Pedraza she wanted a babysitter so they could go gambling together. Pedraza, who was drunk, became enraged and accused Jane Doe of wanting to cheat on him. Pedraza then assaulted her by strangling and hitting her, causing serious bodily injury.
Assistant U.S. Attorney Amanda L. Myers prosecuted the case. The FBI and Rocky Boy’s Police Department conducted the investigation.
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Bowie County man sentenced to federal prison for ATM burglariesRead the Press Release
TEXARKANA, Texas – A Texarkana man has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Lamarcus Vontino Moore Jr., 21, pleaded guilty to conspiracy to commit bank theft and was sentenced to 18 months in federal prison and ordered to pay restitution of $257,789 and forfeiture of $33,665 by U.S. District Judge Robert W. Schroeder III on October 12, 2023.
According to information presented in court, Moore conspired with others to burglarize ATMs (automated teller machines) in the Bowie County area. On Jan. 26, 2021, an ATM located at the Texar Federal Credit Union on Gibson Lane in Texarkana, Texas, was burglarized and approximately $127,654.00 was stolen. On Feb. 2, 2021, an ATM located at the Texar Federal Credit Union on W. 7th Street in Wake Village, Texas, was also burglarized and approximately $10,513.00 was stolen. In each burglary, one of the co-conspirators stole a pickup truck and then the defendants attached chains to the ATM and used the stolen truck to break open the ATM. There was approximately $60,000 in damage done to each ATM. The other six defendants have already been sentenced.
This case was investigated by the Federal Bureau of Investigation, the Wake Village Police Department, the Texarkana Police Department, and the Queen City Police Department. This case was prosecuted by Assistant U.S. Attorney Alan R. Jackson.
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Bourne Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Bourne man pleaded guilty today in federal court in Boston to receiving and possessing child pornography.
Bryan C. Mileikis, 36, pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. U.S. District Court Judge Indira Talwani scheduled sentencing for Feb. 16, 2024. Mileikis was initially arrested and charged in July 2020 and subsequently indicted by a federal grand jury in August 2020.
Mileikis was identified as the owner of a Kik Messenger account distributing child pornography online. A subsequent search of Mileikis’ Bourne residence in June 2019 resulted in the seizure of his iPhone which contained approximately 156 images and 22 videos depicting child pornography.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of the Homeland Security Investigations in Boston; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division; and Bourne Police Chief Brandon Esip made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit is prosecuting 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Belton Man Sentenced for Illegal Firearms Stashed During Police PursuitRead the Press Release
KANSAS CITY, Mo. – A Belton, Mo., man was sentenced in federal court today for illegally possessing firearms that he stashed under the deck of a residence while fleeing from police officers through a residential neighborhood.
Jonathon M. Pentlin, 26, was sentenced by U.S. District Judge Stephen R. Bough to eight years and four months in federal prison without parole.
On June 2, 2023, Pentlin pleaded guilty to being a felon in possession of a firearm.
A police helicopter was following a stolen 2015 Ford Focus, which Pentlin was driving, from Belton to a Phillips 66 gas station at 5151 E. Red Bridge Road in Kansas City, Mo., on Feb. 23, 2022. Law enforcement officers were conducting surveillance on Pentlin and another person as part of an ongoing investigation into a residential burglary in which multiple firearms were stolen. A passenger got out of the Focus and into another vehicle at the gas station. Pentlin continued driving the stolen Focus westbound on Red Bridge Road.
As the helicopter followed the Focus, Pentlin began driving at a high speed. The Focus crashed into an innocent motorist in the area of 107th Terrace and Grandview Road in Kansas City, Mo., causing significant damage to that motorist’s vehicle as well as injury to the motorist. Pentlin got out of his vehicle and ran westbound through several residential backyards. A Kansas City police sergeant who got out of his vehicle in an attempt to apprehend Pentlin saw that Pentlin was armed with a handgun as he was running through the backyards.
Additional officers arrived and located Pentlin in the backyard of a residence on E. 107th Terrace. Officers ordered Pentlin to get on the ground, but he refused to follow their commands and continued to act erratically. Pentlin balled up his fists, assumed a fighting posture, and reached for his waistband as if he still had a firearm, while stating, “I’m going to kill you all.”
A Kansas City police officer shot Pentlin with a taser and he fell on his back. While on the ground, Pentlin continued to resist arrest and tried to kick officers. While taking Pentlin into custody, he bit an officer on the right thigh, which caused an open wound with bruising and swelling. While officers waited for EMS to arrive, Pentlin continuously slammed his head into the grass and attempted to bite several officers’ hands and fingers. Pentlin was transported to a local hospital by EMS.
An ATF agent with a police dog searched the area and found two firearms, a loaded Glock 9mm semi-automatic handgun and a loaded Beretta 9mm semi-automatic handgun, under the deck of a residence in a densely populated neighborhood less than a mile from an elementary school. Officers also found two plastic baggies that contained approximately 4.03 grams of methamphetamine, ammunition, and drug paraphernalia in the stolen car Pentlin was driving.
Court documents also refer to a pending case in Cass County, Mo., in which Pentlin fled from law enforcement officers at speeds reaching 100 miles per hour. Pentlin drove recklessly, entering the oncoming lane of traffic. After officers terminated the pursuit, Pentlin lost control of his vehicle and struck a white van. The collision caused the van to slide and roll one time down an embankment, causing injuries to the driver and two juvenile passengers. Pentlin ran from his vehicle, which also flipped, but was eventually apprehended. Police officers found a loaded firearm in Pentlin’s vehicle.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Pentlin has prior felony convictions for tampering with a motor vehicle, possessing a controlled substance, and distributing marijuana.
This case was prosecuted by Assistant U.S. Attorney Megan A. Baker. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), 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.
Beloit Man Charged with Child Sexual Exploitation CrimesRead the Press Release
MADISON, WIS. – In an indictment returned yesterday by a federal grand jury sitting in Madison, Wisconsin, a Beloit, Wisconsin man is charged with two counts of using minors to produce child pornography. The indictment is announced by Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin.
The indictment charges Misael Dominguez-Adorno, 24, with using two minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. The indictment alleges that he created the videos in October 2020 and March 2022.
Dominguez-Adorno was arrested in Beloit today. He will make an initial appearance in U.S. District Court in Madison today.
If convicted, Dominguez-Adorno faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on each charge. The charges against him are the result of an investigation by the Beloit Police Department, Federal Bureau of Investigation, and Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Attorney General Merrick B. Garland Statement Following Meeting with President Biden and National Security Team on Terrorist Attacks in IsraelRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland after his meeting with the President and members of his national security team regarding the terrorist attacks on Israel:
“Hamas’ horrific terrorist attacks on Israel mark the deadliest massacre of Jews since the Holocaust. My heart is with the families whose loved ones have been killed and those whose loved ones are still missing.
“Since these attacks began, the Justice Department has focused on working with the families of missing Americans to locate their loved ones. We continue to work on the return of all missing Americans, including those believed to be taken hostage.
“The Justice Department has offered assistance to the Israeli government, including through the FBI’s Critical Incident Response Group (CIRG), Operational Technology Division (OTD), and Laboratory Division. These highly trained hostage rescue specialists and other experts stand ready to advise their Israeli counterparts to help locate and bring home missing U.S. citizens.
“In addition, the FBI’s Victim Services Division will continue to coordinate with the State Department to provide support and information to the loved ones of Americans who are missing. For assistance or to report information about missing Americans, call the FBI at 1-800-CALL-FBI.
“And, as always, we remain focused on the threat terrorism poses to our country. Today, I briefed President Biden and his national security team on the Justice Department’s dedication of critical resources to monitor the potential threat of terrorism here at home.”
Associate of Minneapolis Highs Gang Sentenced to Prison for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – An associate of the Highs, a Minneapolis street gang, has been sentenced to 70 months in prison followed by three years of supervised release for illegal possession of a firearm, announced United States Attorney Andrew M. Luger.
According to court documents, on November 15, 2022, Deon Necole Williams, aka Ghost, 28, was in possession of a Smith & Wesson model M9 9mm semiautomatic pistol. Because Williams has prior felony convictions, including aggravated robbery and firearms violations, he is prohibited from lawfully possessing firearms or ammunition.
Williams pleaded guilty on June 5, 2023, to one count of possession of a firearm as a felon. Williams was sentenced yesterday in U.S. District Court before Judge Nancy E. Brasel.
This case is the result of an investigation conducted by the ATF, FBI, St. Cloud Police Department, Minneapolis Police Department, IRS Criminal Investigation, U.S. Postal Inspection Service, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections with assistance from the U.S. Marshals Service, DEA, Homeland Security Investigations, and the Hennepin County Attorney’s Office. The Ramsey County Sheriff’s Office, Dakota County Sheriff’s Office, St. Paul Police Department, and numerous other law enforcement agencies contributed to this investigation.
Assistant U.S. Attorneys Samantha H. Bates, Justin A. Wesley and Trial Attorney Brian W. Lynch of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Arkansas man sentenced for trafficking meth through Liberty CountyRead the Press Release
BEAUMONT, Texas – A Little Rock, Arkansas man has been sentenced to federal prison for trafficking drugs in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Nicholas Iron Wilson, 27, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to 210 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on September 15, 2021, Wilson was stopped by law enforcement officers near a truck stop in Cleveland, Texas. During the stop, law enforcement noticed a strong odor of marijuana. A search of the vehicle revealed two large plastic bags on the back floorboard containing 596 grams of methamphetamine. Wilson was indicted and charged with federal drug trafficking violations.
This case was investigated by the U.S. Drug Enforcement Administration and the Liberty County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michael A. Anderson.
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Albanian National Pleads Guilty to Illegal ReentryRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Alban Lukaj (52, Albania) has pleaded guilty to illegal reentry after removal subsequent to a conviction for commission of an aggravated felony. Lukaj faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to court documents, Lukaj is a native and citizen of Albania. In 2009, Lukaj was convicted of trafficking and conspiracy to traffic MDMA. In 2010, he was convicted of aggravated battery with a firearm. Due to his conviction for an aggravated felony, Lukaj received a permanent ban from the United States. On February 10, 2020, following his release from state prison, Lukaj was deported to Albania. Law enforcement officers with U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Miami – Jacksonville sub-office subsequently learned that Lukaj had unlawfully returned to the United States and arrested him in Jacksonville on August 11, 2023.
This case was investigated by U.S. Immigration and Customs Enforcement and Removal Operations. It is being prosecuted by Assistant United States Attorney David B. Mesrobian.
2 leaders of $2.8 million dark web drug trafficking, money laundering conspiracy sentenced to 16 & 18 years in prisonRead the Press Release
CINCINNATI – Two leaders of a prolific online drug trafficking organization were sentenced in U.S. District Court in Cincinnati to 16 and 18 years in prison.
Khlari Sirotkin, 39, of Colorado, was sentenced on Oct. 11 to 192 months in prison. Sean Deaver, 39, of Nevada, was sentenced in August 2023 to 216 months in prison.
The two men are leaders of five defendants charged in 2020 for using several Dark Web marketplace accounts – including one named Pill Cosby – and encrypted messaging apps to sell illegal drugs online.
The defendants specialized in the manufacturing and distribution of more than one million fentanyl-laced counterfeit pills and laundered approximately $2.8 million from 2013 until 2020. The pressed fentanyl pills, along with heroin, methamphetamine and cocaine, were shipped to the Southern District of Ohio and throughout the country. Co-conspirators also disguised fentanyl as authentic, pharmaceutical opioids.
The investigation was coordinated out of the Cincinnati Field Office of the FBI and is part of an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by the Southern Ohio Digitized Organized Crime Group. The investigation was significantly aided by the Department of Justice’s multi-agency Special Operations Division (SOD).
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA); Charles L. Grinstead, Special Agent in Charge, U.S. Food and Drug Administration – Office of Criminal Investigations (FDA-OCI), Kansas City Field Office; Lesley C. Allison, Inspector in Charge, United States Postal Inspection Service (USPIS); Angie Salazar, Special Agent in Charge, Homeland Security Investigations (HSI); Ohio Attorney General Dave Yost; Cincinnati Police Chief Teresa Theetge; and the Ohio National Guard Counterdrug Task Force announced the sentences imposed by U.S. District Judge Douglas R. Cole. Criminal Chief Karl P. Kadon is representing the United States in this case.
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11 October 2023
Wimauma Man Charged with Receiving and Possessing Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging James Falzone (55, Wimauma) with receipt of child sex abuse material and possession of child sex abuse material. If convicted on all counts, Falzone faces a minimum mandatory penalty of 5 years, up to 40 years, in federal prison.
According to the indictment, on October 18, 2022, Falzone received a visual depiction of a minor being sexually abused. Additionally, Falzone possessed material that depicted young children being sexually abused.
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.
This case was investigated by Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorneys Abigail K. King and Ross Roberts.
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 Attorneys' 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.
Wilkes-Barre Woman Sentenced to 15 Months’ Imprisonment for Tax FraudRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Madeline Nieves, age 49, of Wilkes-Barre, Pennsylvania, was sentenced on October 10, 2023, to 15 months of imprisonment by United States District Court Judge Malachy E. Mannion for conspiring to defraud the United States. Nieves also was sentenced to serve a three-year term of supervised release, following her term of imprisonment.
According to United States Attorney Gerard M. Karam, Nieves previously pleaded guilty to conspiring to evade taxes, for both her personal tax returns, and for a business that she operated. Specifically, Nieves pleaded guilty to conspiring with other individuals to defraud the IRS, from 2018 to 2020, in connection with staffing company Encore Staffing Solutions LLC, leased temporary employees to manufacturing businesses throughout Pennsylvania, and received in excess of $1.2 million in revenue. Nieves failed to withhold, report, and pay Encore Staffing Solutions LLC employee wages to the IRS. Nieves also failed to report her own personal income from Encore Staffing Solutions LLC to the IRS. The crimes resulted in a tax loss of nearly $160,000, which Nieves was ordered to pay in restitution to the IRS.
Five other individuals were previously prosecuted in this investigation:
- Mark Holmes, age 66, of Hughes Springs, Texas, pleaded guilty to accepting, as the General Manager of the Pennsylvania food services company, approximately $400,000 in bribes and kickbacks from temporary staffing companies Global Staffing Services, Inc. and Penns Independent Staffing, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $7,800,000 from Holmes’s employer. Holmes also pleaded guilty to failing to remit approximately $135,000 in employment taxes to the IRS that were owed by Encore Staffing Solutions LLC. Holmes awaits sentencing.
- Nari Lam, age 31, of Wilmington, Delaware, pleaded guilty to failing to remit employment taxes to the IRS. From 2016 through 2020, Nari Lam, as the owner of temporary staffing company Penns Independent Staffing, failed to pay approximately $300,000 in employment taxes owed by Penns Independent Staffing to the IRS. Nari Lam awaits sentencing.
- Danny Sing, age 60, of Philadelphia, Pennsylvania, pleaded guilty to conspiring with other individuals to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing Services, Inc. to its employees, and to failing to withhold and remit approximately $1,360,000 in federal employment taxes to the IRS. Danny Sing and his coconspirators paid Global Staffing Services, Inc. employees in cash, paid themselves in cash, and cashed all checks received from Global Staffing Services, Inc.’s clients, to conceal the income and wages from the IRS. The criminal activities occurred between 2013 and 2020. Sing also pleaded guilty to providing in excess of approximately $400,000 in bribes and kickbacks to managers and supervisors at Global Staffing Services, Inc.’s client, to obtain business for Global Staffing Services, Inc. Sing awaits sentencing.
- Den Lam, age 49, of Philadelphia, Pennsylvania, was charged in an information alleging that he conspired with other individuals to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing Services, Inc. to its employees. Den Lam also was charged with failing to withhold and remit approximately $1,360,000 in federal employment taxes owed, but never paid, by Global Staffing Services, Inc. to the IRS.
- Jason R. Bonnewell, age 41, of North Abington Township, Pennsylvania, was indicted by a federal grand jury with conspiring to commit honest services fraud, and filing false tax returns. Bonnewell, during his tenure as a supervisor at a Pennsylvania food services company from 2014 to 2019, allegedly accepted cash bribes and other things of value from the owners and operators of Global Staffing Services, Inc. and Penns Independent Staffing. In exchange for the kickbacks, Bonnewell and his coconspirators entered contracts with and hired the temporary employees of the two staffing companies. Allegedly, over $13,000,000 were paid to the two staffing companies, in exchange for hundreds of thousands of dollars in kickbacks. Bonnewell also was charged with three counts of filing false tax returns, for tax years 2017 through 2019, for allegedly failing to disclose the cash payments on his tax returns. Bonnewell awaits trial.
The cases were investigated by the IRS Criminal Investigations Division. The cases are being prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.
Indictments and Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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West Columbia Gang Member Sentenced to over 12 Years for Federal Drug and Firearm ChargesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Darius Antonio Pugh, age 36, of West Columbia, was sentenced to 12 ½ years (151 months) in federal prison after earlier pleading guilty to two counts of felon in possession of firearms and ammunition and one count of possession with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, a quantity of cocaine base (commonly known as crack cocaine), and a quantity of cocaine.
Evidence presented to the court showed that on the evening of August 14, 2020, a Charleston County deputy conducted a traffic stop of a speeding vehicle. Pugh, the driver, was in the vehicle with a female friend. As the deputy was speaking with Pugh, he saw loose “shake” (marijuana) inside the vehicle, which gave the deputy probable cause to search the vehicle. Inside the vehicle, deputies recovered a small baggie of cocaine and a loaded 9mm handgun. Pugh, who was out on a state bond from Lexington County for a shooting, was arrested on new state charges and thereafter made another state bond.
Thereafter, while out on state bond for the Charleston incident and state supervised release for discharging a firearm into a dwelling charges, Pugh, a gang member, was involved in a high speed chase with Richland County deputies. Evidence presented to the court showed that on the evening of April 9, 2022, Richland County deputies responded to a home invasion in progress in Northeast Columbia. Enroute, deputies received information that the suspect fled in an older model Expedition. While responding to the call, a deputy encountered an older model Expedition fitting the general description in the area. The deputy attempted to make a traffic stop of the Expedition based upon improper vehicle tags. As the deputy turned on his blue lights and siren, the Expedition fled from Killian Road onto 1-77 with speeds in excess of 100mph. The chase continued for some time and ultimately stopped within the Colony apartment complex, after the Expedition struck a parked vehicle as it attempted to make a turn at a high rate of speed. Pugh ran from the vehicle and was apprehended by deputies. Inside a bag that Pugh had, deputies found a loaded 9mm handgun with an extended magazine and clear bags of methamphetamine, cocaine, and crack cocaine. A search of Pugh’s Expedition uncovered another loaded 9mm handgun, along with a jar of marijuana and a digital scale. Both handguns were reported stolen in Charlotte. It was determined that Pugh was not the suspect involved in the home invasion and that his Expedition was not the Expedition the home invasion victim said left the scene.
Pugh is prohibited from possessing firearms and ammunition based upon his prior state convictions, which include possession of cocaine, possession of other controlled substance, assault and battery of a high and aggravated nature (two separate convictions), possession of stolen motor vehicle, distribution of heroin, distribution of fentanyl, failure to stop for blue light and siren, and discharging firearms into dwelling.
United States District Judge Mary Geiger Lewis sentenced Pugh to 151 months imprisonment, which will be followed by eight years of federal supervised release. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Richland County Sheriff’s Department, the Charleston County Sheriff’s Department, and the Mt. Pleasant Police Department. Assistant U.S. Attorney Stacey D. Haynes prosecuted the case.
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Victory Automotive Group Inc. Agrees to Pay $9 Million to Settle False Claims Act Allegations Relating to Paycheck Protection Program LoanRead the Press Release
Port Richey, Florida-based automotive management company Victory Automotive Group Inc. (VAG) has agreed to pay $9 million to resolve allegations that it violated the False Claims Act (FCA) by knowingly providing false information in support of a Paycheck Protection Program (PPP) loan forgiveness application it submitted.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses. Only small businesses were eligible for PPP loans. Whether an applicant qualified as a small business depended on various factors, including the number of employees, amount of revenues and net worth of the applicant, along with any other corporate affiliates that share common operational control. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.
VAG’s application for a PPP loan certified it was a small business with fewer than 500 employees. However, VAG shared common operational control with dozens of automobile dealerships across the country, and VAG and its affiliates had more than 3,000 employees in total. For that reason, VAG was not eligible for the $6,282,362 PPP loan it received, which was later forgiven in full.
“PPP loans were intended to help small businesses during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those who undermined the purpose of the PPP program and knowingly obtained PPP funds for which they were not eligible.”
“Even though the PPP Program has ended, our mandate to investigate and redress the harm from improper PPP loans to companies and sole proprietors continues,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to seek repayment of those loans and, where appropriate, additional sanctions from applicants who obtained a loan to which they were not entitled.”
“This resolution demonstrates the department’s resolve in pursuing businesses that improperly received pandemic relief funds,” said Director Michael C. Galdo of the Justice Department's COVID-19 Fraud Enforcement. “I want to thank the Small Business Association (SBA) and our law enforcement partners for their assistance with the Justice Department’s pandemic fraud enforcement efforts.”
“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to PPP misconduct,” said SBA General Counsel Therese Meers. “The federal government is strongly committed to identifying and aggressively pursuing any instances of fraud or misconduct within the Paycheck Protection Program.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned U.S. ex rel. Jones v. Victory Automotive Group, Inc, et al., No. 8:21-cv-1742 (M.D. Fla.). The whistleblower will receive a total of approximately $1.62 million in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the SBA’s Office of General Counsel and the SBA's Office of Inspector General.
This matter was handled by Senior Trial Counsel Benjamin C. Wei of the Civil Division and Assistant U.S. Attorney Lindsay Saxe Griffin for the Middle District of Florida, with assistance from Christopher J. McClintock of the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Victory Automotive Group Inc. Agrees to Pay $9 Million to Settle False Claims Act Allegations Relating to Paycheck Protection Program LoanRead the Press Release
Port Richey, Florida-based automotive management company Victory Automotive Group Inc. (VAG) has agreed to pay $9 million to resolve allegations that it violated the False Claims Act (FCA) by knowingly providing false information in support of a Paycheck Protection Program (PPP) loan forgiveness application it submitted.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses. Only small businesses were eligible for PPP loans. Whether an applicant qualified as a small business depended on various factors, including the number of employees, amount of revenues and net worth of the applicant, along with any other corporate affiliates that share common operational control. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.
VAG’s application for a PPP loan certified it was a small business with fewer than 500 employees. However, VAG shared common operational control with dozens of automobile dealerships across the country, and VAG and its affiliates had more than 3,000 employees in total. For that reason, VAG was not eligible for the $6,282,362 PPP loan it received, which was later forgiven in full.
“PPP loans were intended to help small businesses during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those who undermined the purpose of the PPP program and knowingly obtained PPP funds for which they were not eligible.”
“Even though the PPP Program has ended, our mandate to investigate and redress the harm from improper PPP loans to companies and sole proprietors continues,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to seek repayment of those loans and, where appropriate, additional sanctions from applicants who obtained a loan to which they were not entitled.”
“This resolution demonstrates the department’s resolve in pursuing businesses that improperly received pandemic relief funds,” said Director Michael C. Galdo of the Justice Department's COVID-19 Fraud Enforcement. “I want to thank the Small Business Association (SBA) and our law enforcement partners for their assistance with the Justice Department’s pandemic fraud enforcement efforts.”
“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to PPP misconduct,” said SBA General Counsel Therese Meers. “The federal government is strongly committed to identifying and aggressively pursuing any instances of fraud or misconduct within the Paycheck Protection Program.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned U.S. ex rel. Jones v. Victory Automotive Group, Inc, et al., No. 8:21-cv-1742 (M.D. Fla.). The whistleblower will receive a total of approximately $1.62 million in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the SBA’s Office of General Counsel and the SBA's Office of Inspector General.
This matter was handled by Senior Trial Counsel Benjamin C. Wei of the Civil Division and Assistant U.S. Attorney Lindsay Saxe Griffin for the Middle District of Florida, with assistance from Christopher J. McClintock of the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementUtica Man Sentenced for Possession of Fentanyl for DistributionRead the Press Release
SYRACUSE, NEW YORK – Harry Rodriguez, Jr., age 43, of Utica, New York, was sentenced today to serve 84 months in federal prison for his convictions for two counts of possession with intent to distribute fentanyl, announced United States Attorney Carla B. Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
As part of his previous guilty plea, Rodriguez admitted that on July 21, 2021, he purchased approximately 36 grams of fentanyl for redistribution. He also admitted that on September 14, 2021, he purchased approximately 50 grams of fentanyl for redistribution.
United States District Judge David N. Hurd also imposed a 3-year term of post-release supervision and a $200 special assessment.
This was investigated by the U.S. Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigations (IRS-CI), New York State Police, Oneida County Sheriff’s Office, Oneida County District Attorney’s Office, Utica Police Department, Syracuse Police Department, Rome Police Department, Homeland Security Investigations, United States Immigration and Customs Enforcement and Removal Operations, Onondaga County Sheriff’s Office, Onondaga County District Attorney’s Office, New York Army National Guard Counter Drug Program, Yorkville Police Department, Whitesboro Police Department, and was prosecuted by Assistant U.S. Attorney Tamara Thomson.
United States Attorney’s Office Hosts United Against Hate Event in Des MoinesRead the Press Release
DES MOINES, IA – The United States Attorney’s Office for the Southern District of Iowa will host a public outreach event focused on identifying and reporting hate crimes on Thursday, October 19, 2023, from 5:00 p.m. to 6:30 p.m. at the Polk County River Place, located at 2309 Euclid Avenue in Des Moines.
United Against Hate is a Department of Justice initiative aimed at combating unlawful acts of hate by educating the public about federal hate crimes and anti-discrimination statutes. The program encourages the reporting of hate crimes, hate incidents, and unlawful discrimination to law enforcement and the Department of Justice.
“Hate crimes have a detrimental impact not only on the victims but the entire community. We look forward to providing a forum for subject matter experts to answer questions and shed some light on the laws and processes,” said United States Attorney Rich Westphal.
The United Against Hate event will include an interactive panel discussion featuring representatives from FBI, local law enforcement, Iowa County Attorneys Association, and Polk County Crisis and Advocacy Services, as well as speakers sharing their experiences responding to acts of hate. Please RSVP for the event to [email protected].
To report a hate crime to the FBI, please call 1-800-CALL-FBI, submit a tip at tips.fbi.gov, or contact your local field office.
US Attorney's Office for the District of South Carolina introduces new Public Affairs SpecialistRead the Press Release
COLUMBIA, SOUTH CAROLINA -- United States Attorney Adair F. Boroughs is pleased to announce the arrival of Veronica Hill as the office’s Public Affairs Specialist and media contact. A seasoned communications professional, Veronica brings with her a wealth of energy, creativity, and collaborative experience.
Veronica joins the U.S. Attorney’s Office after serving as a public information officer for the Richland County Sheriff’s Department. Originally from Kansas, Veronica has worked in the fields of journalism, non-profit community engagement, and law enforcement. She has a passion for developing mission-driven communication strategies and public information campaigns. She has a broad media and marketing portfolio including experience coordinating national media coverage, managing TV/docuseries appearances, and social media content creation. Veronica holds a bachelor’s degree in strategic communication and a master’s degree in theology.
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U.S. Attorney’s Office Partnering with Indiana Disability Rights to Ensure Early Voting Sites are Accessible for All VotersRead the Press Release
INDIANAPOLIS- The United States Attorney’s Office for the Southern District of Indiana (USAO) and Indiana Disability Rights (IDR) are partnering to survey the accessibility of early polling sites for 2023 General Election. The project, “Access the Vote,” uses survey results to inform County Clerks about individualized solutions to ensure their polling places are accessible to voters with disabilities.
IDR has conducted accessibility surveys, based on the United States Department of Justice’s Americans with Disabilities Act (ADA) Checklist for Polling Places, during early voting in several primary and general elections. The USAO’s participation provides needed additional personnel to survey more counties and helps to raise awareness of the Access the Vote project.
The ADA requires all aspects of in-person voting – both early and on Election Day – to comply with accessibility requirements, including those for accessible parking and the route of travel to the voting area. The Help America Vote Act (HAVA) mandates additional accessibility measures, such as the provision of a working accessible voting machine at each polling place. Using a combination of IDR and USAO staff, as well as trained community partners, Access the Vote identifies potential ADA and HAVA violations and opportunities to remedy them.
“Voting is a fundamental right and civic duty. Everyone who wishes to vote in-person deserves to do so without barriers,” said Kristin Dulaney, IDR’s Project Manager for Access the Vote. “We welcome the support of the USAO to expand our Access the Vote initiative and serve more voters with disabilities who will cast their ballot this fall throughout Indiana.”
“Having your voice heard at the ballot box is a fundamental part of being an American. Every voter deserves the opportunity to cast their ballot in-person without barriers—and our laws require election officials to ensure access to the polls,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Through the Access the Vote project, we are teaming up with Indiana Disability Rights to help ensure that polling places comply with the Americans with Disabilities Act, and to educate election administrators on how to make their polling sites accessible. We will work together to see that all eligible Hoosiers are able to fully participate in our elections.”
For more information on the U.S. Attorney’s Office’s initiatives to protect Civil Rights, please visit our website.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jeffrey D. Preston, who leads the office’s civil enforcement of civil rights laws and the Access the Vote project. Myers also thanked all the office’s professionals who volunteered to help ensure voters’ rights under law.
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Two Nez Perce County Men Sentenced for Federal Gun CrimesRead the Press Release
COEUR D'ALENE – Shane Bohn, 35, and Matthew Durham, 24, both of Lewiston, were sentenced in separate cases to federal prison for unlawful possession of firearms, U.S. Attorney Josh Hurwit announced today. Bohn received a sentence of 42 months and Durham received a sentence of 15 months. After completing their sentences, the defendants will be placed on supervised release for four and three years, respectively. The defendants were also ordered to forfeit their firearms.
According to court records, Bohn was found in possession of a firearm on November 30, 2022, after having been convicted of felony aggravated assault in Nez Perce County. Durham was found in possession of a firearm on December 29, 2022, after having been convicted of a felony drug charge in Nez Perce County.
U.S. Attorney Hurwit commended the investigations by the North Idaho Violent Crimes Task Force and the work of Special Assistant United States Attorney (SAUSA) April Smith. Smith is the Chief Deputy Prosecutor for Nez Perce County and is sworn as a SAUSA to file cases in federal court.
“I greatly appreciate SAUSA Smith and Elected Prosecutor Coleman’s commitment to keeping guns out of the hands of convicted felons,” said U.S. Attorney Hurwit. “These sentencings demonstrate the advantages of the SAUSA program and the excellent working relationship between my office and the Nez Perce County Prosecutor’s Office.”
“Working jointly with the U.S. Attorney’s Office has provided another way to protect our community. I want to thank their office for partnering with us and I want to recognize North Idaho Violent Crimes Task Force Officer Cody Bloomsburg for his hard work in investigating both of these cases,” said Elected Prosecutor Coleman.
These cases are being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Two Members of Drug Trafficking Conspiracy SentencedRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Heriberto Castillo (44, Denton, Texas) to seven years in federal prison for conspiracy to distribute and possess with the intent to distribute cocaine and fentanyl. His co-conspirator, David Ceballos (27, Alvarado, Texas), was sentenced to three years and one month imprisonment for possession with the intent to distribute cocaine. Castillo had pleaded guilty on November 28, 2022, and Ceballos had pleaded guilty on June 5, 2023.
According to court documents, in the summer of 2021, Castillo was part of a drug trafficking conspiracy that was sending narcotics to the Middle District of Florida. On August 3, 2021, Castillo, while still in Texas, delivered approximately 15 kilograms of cocaine that was destined for the Middle District of Florida. Castillo then flew to Florida on multiple occasions to collect the proceeds, including to pick up a semi-truck tire that was supposed to contain over $400,000.
Also, according to court documents, in August 2021, Ceballos traveled from Texas to Bradenton to distribute approximately six kilograms of cocaine. On August 26, 2021, Ceballos was arrested in Bradenton while transporting the cocaine.
This case was investigated by the Drug Enforcement Administration as part of the Organized Crime Drug Enforcement Task Force (OCDETF), which identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF. It was prosecuted by Assistant United States Attorneys Michael R. Kenneth and Diego F. Novaes.
Two Indicted in Connection with Multiple St. Louis CarjackingsRead the Press Release
ST. LOUIS – Two St. Louis area men have been indicted and accused of committing multiple carjackings and other crimes.
An indictment accuses Labron Collins, 19, and Bobby Lee Jones, 24, of carjacking two vehicles and trying to take a third on Jan. 25, 2023. They men tried to steal a 2022 Dodge Charger and successfully carjacked a 2012 Honda Civic and a 2011 Infiniti G37, the indictment says.
Collins also carjacked a 2013 Volkswagen Jetta on February 11 and, the next day, a 2013 Acura TL and a 2014 Honda Civic, the indictment says.
Jones was also accused in the indictment of supplying fentanyl on Jan. 15, 2023, that killed the user.
Both were indicted in U.S. District Court in St. Louis September 20. Jones was arrested September 22 and Collins was arrested October 4. Collins appeared in court Tuesday for a detention hearing.
Jones, of Richmond Heights, was indicted on one count of distribution of fentanyl resulting in death, three counts of carjacking, two counts of possession or brandishing a firearm in furtherance of a crime of violence and one count of being a felon in possession of ammunition.
Collins, of St. Louis, was indicted on six carjacking charges and four charges of possession or brandishing a firearm in furtherance of a crime of violence.
The fentanyl charge carries a penalty of at least 20 years in prison. The carjacking charges are punishable by up to 15 years in prison. Brandishing a firearm in furtherance of a crime of violence carries a penalty of seven years to life in prison. A felon in possession of ammunition who has three or more prior convictions for crimes of violence faces at least 15 years in prison.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
Two Defendants Indicted for Trafficking Protected BirdsRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, an eight-count indictment was unsealed charging John Waldrop and Toney Jones with conspiracy to smuggle goods into the United States, smuggling goods into the United States, violating the Endangered Species Act (ESA), and money laundering conspiracy. The defendants surrendered this morning in Atlanta and will make their initial appearances this afternoon in U.S. District Court for the Northern District of Georgia. The defendants will be arraigned via teleconference in federal court in Brooklyn on October 16, 2023.
The defendants are alleged to have illegally imported hundreds of taxidermy bird mounts and thousands of eggs into the United States between January 2016, and December 2020. U.S. law and regulations require that importers declare wildlife to the U.S. Fish and Wildlife Service (USFWS) and Customs authorities. Permits are also required for wildlife protected by the ESA, Migratory Bird Treaty Act (MBTA) and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
Breon Peace, United States Attorney for the Eastern District of New York, Todd Kim, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division (ENRD, and Edward Grace, Assistant Director, U.S. Fish and Wildlife Service, Office of Law Enforcement (USFWS), announced the arrests and charges.
“It is in our national and global interest to enforce federal laws and treaties that protect endangered birds from the harm of alleged profiteers like the defendants, and the Eastern District of New York will do so” stated United States Attorney Peace.
Mr. Peace also thanked The U.S. Postal Inspection Service and the Alabama Department of Conservation and Natural Resources for their assistance with the investigation.
“The Endangered Species Act is a vital law in the fight against international trafficking of protected wildlife,” stated Assistant Attorney General Kim. “Rare and endangered birds have important roles in their habitats, and we are committed to preventing and deterring their unlawful removal.”
“This investigation highlights the immense pressure illegal trade places on imperiled bird species around the world, and the Service's commitment to upholding laws and treaties that prevent the exploitation of foreign and domestic species,” stated USFWS Assistant Director Grace. “We hope this indictment sends a clear message that our investigators will work tirelessly to seek justice for poached wildlife.”
According to the indictment, Waldrop and Jones used online sales sites such as eBay and Etsy to buy taxidermy birds and eggs from around the world, including Germany, Hungary, Iceland, Italy, Lithuania, Malta, Russia, South Africa, the United Kingdom and Uruguay. Waldrop and Jones imported and collected many species of protected birds, such as canary, dipper, duck, eagle, falcon, grouse, gull, hawk, heron, hoopoe, kestrel, kinglet, lapwing, murre, owl, parrot, pochard, rail, teal, snipe, spoonbill, vulture and woodpecker.
In addition to the conspiracy, the indictment charges Waldrop and Jones with importing three packages containing taxidermy birds and eggs in 2020 through John F. Kennedy International Airport in violation of smuggling and ESA laws. The packages contained a Levant sparrowhawk, a grasshopper buzzard-hawk, two gull eggs, two murre eggs and one unidentified bird egg. The final count of the indictment alleges that Waldrop and Jones conspired to commit money laundering by sending funds out of the United States to finance bird smuggling. The indictment also seeks forfeiture of 779 bird mounts and 2,594 eggs alleged to have been illegally imported into the United States.
As alleged, Waldrop and Jones made requests to wildlife dealers for particular bird species, including species that were protected under CITES and the MBTA. In turn, those dealers notified Waldrop and Jones when a bird of that species had been killed and was available for purchase. Waldrop and Jones also communicated regularly with dealers about new birds available for purchase. The estimated value of the wildlife purchased, transported, imported, and possessed by the defendants was at least $1.2 million.
The CITES treaty regulates trade in endangered or threatened species through permit requirements. The United States and 183 other countries are signatories to the CITES treaty. The MBTA implements treaties with Canada, Japan, Mexico, and Russia to protect many native U.S. bird species that also have habitats in those countries.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the smuggling and money laundering charges, Waldrop and Jones face up to 20 years in prison and a $250,000 fine. The conspiracy charge carries a five-year maximum sentence, and the ESA is punishable by six months in prison.
Assistant United States Attorney Anna Karamigios of the Eastern District of New York and Senior Trial Attorney Ryan Connors of ENRD’s Environmental Crimes Section are in charge of the prosecution.
The Defendants:
JOHN WALDROP
Age: 74
Cataula and Columbus, GeorgiaTONEY JONES
Age: 53
Eufala, AlabamaE.D.N.Y. Docket No.: 23-CR-378 (RPK)
Two Defendants Convicted of Murder for Hire in Fatal Shooting of Perceived Business Rival in QueensRead the Press Release
Today, a federal jury in Brooklyn returned a guilty verdict against Qing Ming Yu, also known as “Allen” and Zhe Zhang, also known as “Zack,” on both counts of an indictment charging them with murder-for-hire and murder-for-hire conspiracy in connection with the February 12, 2019 killing of 31-year-old Xin “Chris” Gu, outside of a karaoke bar in Queens. The verdict followed a two-week trial before United States District Judge Carol Bagley Amon. When sentenced, each defendant faces a mandatory term of life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“The victim worked long hours to start his own company only to be murdered execution-style by these treacherous defendants who thought nothing of snuffing out a human life as part of their own business plan,” stated United States Attorney Peace. “Thanks to the jury, and the outstanding work of the prosecutors, NYPD detectives and FBI special agents, justice has been served and the defendants will be deservedly punished for this vicious killing.”
As proven at trial, Allen Yu was the president of Amaco, a multi-million dollar construction company that renovated apartments in New York City. In 2015, Xin Gu joined Amaco as a project manager. Although Amaco’s business nearly quadrupled after he joined the company, Xin Gu became concerned about the company’s financial viability and resigned in 2018 to start his own property development company called KG Management. After Xin Gu’s departure, several clients and employees also cut ties with Qing Ming Yu’s business. Multiple companies took their lucrative projects from Amaco to KG Management, including one project valued at $1,000,000. Enraged at Xin Gu’s perceived disloyalty, Qing Ming Yu hired co-conspirator You You and Zhe Zhang to kill Xin Gu in exchange for payment. Zhang in turn hired another co-conspirator, Antony Abreu, to assist in carrying out the murder.
On the evening of February 11, 2019, into the following morning, Xin Gu’s new company hosted a celebration of the Lunar New Year at Lake Pavilion restaurant in Flushing. After that dinner, Xin Gu and a smaller group went to a karaoke bar, Grand Slam KTV on Fowler Avenue. The hit team learned of the party and with You You acting as a lookout and Zhe Zhang serving as the getaway driver, Abreu allegedly shot the victim multiple times as he waited for an Uber, killing him. Over the next three months, Qing Ming Yu paid $150,000 to You You for the murder.
You You pleaded guilty to murder-for-hire conspiracy in June 2023 and is awaiting sentencing. Abreu is awaiting trial.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Devon Lash, Nadia E. Moore and Gabriel Park are in charge of the prosecution with the assistance of Paralegal Specialist Elizabeth Reed.
The Defendants:
QING MING YU (also known as “Allen”)
Age: 55
Oyster Bay, New YorkZHE ZHANG (also known as “Zack”)
Age: 35
Arcadia, California and Flushing, New YorkE.D.N.Y. Docket No. 22-CR-208 (CBA)
Two California Men Sentenced to Prison for Drug TraffickingRead the Press Release
SPRINGFIELD, Ill. – Two men from Santa Ana, California, have been sentenced to multiple years in prison for trafficking narcotics to Central Illinois. Cesar Lopez Reyes, 21, and Angel Tovar, 22, were each charged with conspiracy to distribute 50 grams or more of methamphetamine.
According to court documents and information presented at public court hearings, the two men had been using social media to conduct a mail-order drug business, which distributed illegal narcotics via the U.S. Mail across the country to Nevada, Oregon, North Carolina, Kentucky, and to multiple places in Illinois. Tovar conducted sales and Lopez Reyes assisted in shipping the illegal substances. The United States Postal Inspection Service and the Illinois State Police West Central Illinois Task Force opened an investigation into the duo after intercepting a package containing methamphetamine, cocaine, and counterfeit pills bound for Adams County, Illinois. The two men were arrested at their residences in Orange County, California. At Tovar’s home, law enforcement recovered an AR-15 semi-automatic rifle.
Lopez Reyes was sentenced on August 30, 2023, to 60 months’ imprisonment, to be followed by three years of supervised release. Tovar was sentenced on October 3, 2023, to 120 months’ imprisonment, to be followed by five years of supervised release. At both hearings, U.S. District Judge Colleen R. Lawless noted that while neither man had any criminal convictions, each had committed a very serious offense.
Lopez Reyes pleaded guilty on April 25, 2023, and Tovar pleaded guilty on May 10, 2023.
“The distribution of illegal drugs, including methamphetamine and counterfeit pills, via social media is happening nationwide, and young adults are particularly susceptible to this type of marketing,” said Assistant U.S. Attorney Sarah E. Seberger. “Our law enforcement partners’ work to stem this tide of illegal drug sales is vitally important to protect public safety. Counterfeit pills also are often not what they appear to be, exacerbating this danger of these sales and leading to potential overdoses. We are grateful for federal and local law enforcements’ combined efforts on this case.”
“The U.S. Postal Inspection Service is committed to dismantling drug trafficking operations to keep USPS customers and employees safe from drug traffickers who favor profit over human lives,” stated Inspector in Charge Ruth M. Mendonça of the U.S. Postal Inspection Service, Chicago Division. “This case is an example of the dedication of the Inspection Service and its law enforcement partners to prevent the shipping of illegal narcotics through the U.S. Mail, which not only endangers the public but also places USPS employees at risk. I appreciate the efforts by all of our law enforcement partners in this case.”
“FBI Springfield and our law enforcement partners have one common goal – the safety of the citizens we have sworn to protect. Removing dangerous drugs and drug dealers off the streets demonstrates our commitment to that goal and holds narcotic traffickers accountable for their actions, no matter what state they reside in,” said FBI Springfield Field Office Acting Special Agent in Charge Shannon Fontenot. “As our commitment is ongoing, the FBI will remain vigilant, continuing to identify and investigate those engaged in the illegal acquisition and distribution of controlled substances.”
The Illinois State Police West Central Illinois Task Force; the United States Postal Inspection Service; the Quincy Police Department; and the Federal Bureau of Investigation, Springfield Field Office, investigated the case with valuable assistance from the Santa Ana Police Department. Assistance was also provided by the Adams County State’s Attorney’s Office. AUSA Seberger represented the government in the prosecution.
The cases against Lopez Reyes and Tovar are 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.
Three Middlesex County Individuals Admit COVID-19 Fraud Schemes Totaling over $2.1 MillionRead the Press Release
NEWARK, N.J. – Two men and one woman of Middlesex County, New Jersey, have pleaded guilty on separate charges related to their roles in fraudulently obtaining over $2.1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced today.
Arlen G. Encarnacion, 37, of Perth Amboy, New Jersey, pleaded guilty today before U.S. District Judge Georgette Castner in Trenton federal court to a two-count information charging him with conspiracy to commit wire fraud and money laundering. On Aug. 8, 2023, Jacquelyn Pena, 37, and Kent Encarnacion, 30, both of Perth Amboy, also separately pleaded guilty before Judge Castner to informations charging each of them with conspiracy to commit wire fraud and money laundering.
U.S. Attorney Philip R. Sellinger“Enormous amounts of financial relief went to those Americans who were struggling with this unprecedented pandemic, but, sadly, a number of people saw this difficult time as an opportunity to enrich themselves illicitly. Our office is focused on combating all types of fraud, especially when it involves exploiting the suffering of others.”
“The CARES Act was created to assist to American citizens and businesses that were impacted financially by the COVID-19 Pandemic,” Christopher A. Nielsen, Inspector in Charge, U.S. Postal Inspection Service, Philadelphia Division, said. “However, as alleged, Arlen Encarnacion, and his co-conspirators, manipulated this critical lifeline through a complex scheme that fraudulently obtained more than $2 million dollars in Paycheck Protection Program (PPP) loans. Postal inspectors will continue to work with the U.S. Attorney’s Office, and our law enforcement partners, to identify and hold accountable, those individuals who steal pandemic relief to fulfill their own greed.”
“IRS Criminal Investigations and our law enforcement partners will not tolerate criminal exploitation of this national emergency for personal gain,” Tammy Tomlins, Special Agent in Charge of IRS – Criminal Investigation, Newark Field Office, said. “Today’s plea sends a clear message that we remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
According to the documents filed in these cases and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. The CARES Act also authorized the Small Business Administration to provide EIDLs of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.
To obtain a PPP or EIDL loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and expenses. In addition, businesses generally had to provide supporting documentation.
Arlen Encarnacion submitted 11 fraudulent PPP loan applications and three fraudulent EIDL applications on behalf of purported businesses. Kent Encarnacion helped submit one of the fraudulent PPP applications, and Pena helped submit three of the other fraudulent PPP applications. Each application contained false representations, including bogus federal tax return documentation and fabricated information about the number of employees and wages paid. Based on these alleged misrepresentations, lenders, Federal Home Loan Bank members, and the Small Business Administration collectively provided the purported businesses with approximately $2.1 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Arlen Encarnacion received the bulk of the fraudulent proceeds, and together with Kent Encarnacion and Pena, they misappropriated all of the funds.
Each count of conspiracy to commit wire fraud carries a maximum penalty of 20 years in prison, and each count of money laundering carries a maximum penalty of 10 years in prison. Both the wire fraud and money laundering counts carry a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. Sentencing for Arlen Encarnacion is scheduled for Feb. 13, 2024. Sentencing for Kent Encarnacion is scheduled for Dec. 12, 2023, and for Pena, Dec. 13, 2023.
U.S. Attorney Philip Sellinger credited postal inspectors of U.S. Postal Inspection Service in Newark, under the direction of Christopher A. Nielsen, Philadelphia Division; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; 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 of the Social Security Administration – Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the Federal Housing Finance Agency – Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau – Office of Inspector General, under the direction of Special Agent in Charge Brian Tucker; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; with the investigation leading to the guilty pleas. He also thanked the Middlesex County Prosecutor’s Office and the Perth Amboy Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
encarnacion.information.pdfTexas U.S. Attorneys unite against domestic violenceRead the Press Release
HOUSTON – All four U.S. Attorneys from Texas converged in the Southern District for a historic event to commemorate Domestic Violence Awareness Month (DVAM), honor Texas victims and survivors as well as salute the dedication of advocates, service providers, justice professionals, first responders and law enforcement.
U.S. Attorney Alamdar S. Hamdani was joined by fellow U.S. Attorneys Damien Diggs, Leigha Simonton and Jaime Esparza of the Eastern, Northern and Western Districts, respectively, along with Gloria Aguilera Terry, CEO of the Texas Council on Family Violence (TCFV), for this historic event. This is the first press conference to include all four Texas U.S. Attorneys.
The audience heard how domestic violence takes a toll on families and affects communities, both socially and economically. The consequences of domestic violence, dating violence and intimate partner violence have a long-lasting impact. One of four women and one of 10 men will experience domestic or sexual violence in their lifetime.
According to the TCFV Honoring Texas Victims 2022 analysis report, intimate partners killed 216 Texans in 64 Texas counties. This includes 179 women, 37 men and six LGBTQ+ victims. Of those, 96% of family members, friends and bystanders were killed with a firearm; 100% of those injured were shot; and 18 perpetrators had identified firearm prohibitions. The number of women a male partner killed has also nearly doubled in the last decade.
A crucial part of combatting domestic violence and reducing violent crimes includes enforcing federal firearm prohibitions.
The Texas U.S. Attorneys are committed to leveraging every federal resource available to go after abusers. They are collaborating with state and local partners by providing resources and initiative awareness.
“Through our novel and long-running Domestic Violence Initiative, out violent crime prosecutors and our partner agents at Bureau of Alcohol, Tobacco, Firearms and Explosives focus on investigating and prosecuting criminals who illegally possess guns and have a history of domestic abuse,” said Simonton. “This included those with previous assault conviction against an intimate partner.”
“We are going to the shelters and letting our folks at the shelters and all the local stakeholders know we have this initiative, particularly in the Northern and Eastern Districts,” said Diggs. “We are here to help and we want to help.”
"As U.S. Attorney for each of the four districts in Texas, it is our responsibility to deploy every available resource and forge strategic partnerships with local law enforcement and fellow prosecutors," said Esparza. "Our shared goal is to ensure victims have a clear path to safety and justice."
“At the end of the day the goal is to bring people out of the shadows, those who are being abused, to come seek help,” said Hamdani. “We want the public to know the chief federal law enforcement officers of this state stand united and firmly with domestic violence victims and survivors.”
If you or someone you know is a victim of domestic violence or need resources, please visit the resources page for the Office of Violence Against Women.
There is immediate help for domestic violence victims - Call Legal Aid for Survivors of Sexual Assault at 1-844-303-7233, Stop Abuse for Everyone at 1-512-267-7233 (or text 1-737-888-7233) or Texas Advocacy Project on their Hope Line at 1-800-374-4673 or their Pro Bono Attorney line at 1-800-374-4674.
Tennessee Man Found Guilty of Felony Charges Related to Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – A Tennessee man was found guilty in the District of Columbia today of five felony charges related to his conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.
Ronald Colton McAbee, 29, of Unionville, Tennessee, was found guilty of all charges against him following a jury trial in U.S. District Court. McAbee was convicted of five felonies, including assaulting, resisting, or impeding certain officers; civil disorder; entering and remaining in a restricted building or grounds with a deadly or dangerous weapon; disorderly and disruptive conduct in a restricted building or grounds with a deadly or dangerous weapon; and engaging in physical violence in a restricted building or grounds with a deadly or dangerous weapon.
On Sept. 25, 2023, McAbee pleaded guilty to a separate felony charge of assaulting, resisting, or impeding an officer and a misdemeanor charge for an act of physical violence on the Capitol grounds before U.S. District Court Judge Rudolph Contreras in the District of Columbia.
Judge Contreras will sentence McAbee on Feb. 29, 2024.
According to the government’s evidence, on Jan. 6, 2021, officers from the Metropolitan Police Department (MPD) responded to the U.S. Capitol building to assist the U.S. Capitol Police in maintaining the security of the Capitol from ongoing riots. At approximately 4:20 p.m., MPD officers made their way to an interior tunnel of the Capitol building. Here, they assumed a post in an Archway that provided access to the building’s Lower West Terrace.
As the officers arrived, hundreds of individuals gathered outside the Archway, some throwing and/or swinging various makeshift weapons at the group of officers. At about 4:27 p.m., an MPD officer positioned toward the opening of the Archway was knocked to the ground, kicked, and stripped of his baton. During this incident, McAbee was positioned on the south side of the Archway and was able to observe the assault.
After the officer was knocked to the ground, McAbee stepped into the Archway, grabbed the officer’s leg, and pulled him further towards the crowd. When a second MPD officer stepped off the police line to assist the downed officer, McAbee stood up, yelled at the officer who had stepped out to assist, and then swung his arms and hands towards the officer’s head and torso. McAbee made contact with the officer and was wearing reinforced knuckle gloves at the time of the assault.
McAbee then returned his attention to the downed officer and lifted him by the torso and shoulders. As a result, McAbee and the officer slid down a set of steps, with McAbee falling on top of the officer. The two landed in the crowd, where McAbee lay on top of the officer while other rioters assailed the officer for over 20 seconds before the officer was finally able to get up and work his way back to the Archway. The officer sustained physical injuries, including a head laceration, concussion, elbow injury, bruising, and bodily abrasions. The officer was transported to the hospital and treated for his injuries.
McAbee was arrested on Aug. 17, 2021, in Nashville, Tennessee.
The Court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Middle District of Tennessee and the U.S. Attorney’s Office for the Eastern District of Tennessee.
The case was investigated by the FBI’s Washington, Memphis, and Knoxville Field Offices, which identified McAbee as BOLO (Be on the Lookout) #134 on its seeking information photos. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.
In the 33 months since Jan. 6, 2021, more than 1,100 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 400 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
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Ten Individuals Charged for $950,000 COVID-19 Relief Fraud SchemesRead the Press Release
A federal grand jury in the Western District of Tennessee returned an indictment yesterday charging 10 individuals for their roles in schemes to defraud the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP), federal stimulus programs authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, the defendants allegedly obtained funds under the EIDL program and PPP by submitting false and fraudulent loan applications that collectively sought over $950,000. The defendants are alleged to have submitted applications on behalf of businesses and entities they purportedly owned, knowing that the applications contained materially false statements and misrepresentations concerning, among other things, the purported entities’ number of employees, gross revenues, costs of goods sold, average monthly payroll, and the date on which the entities were established. The defendants then allegedly used the loan funds for purposes not authorized by the EIDL program or PPP, including for personal expenses.
Below are the 10 defendants and their charges:
- Rodrick Flowers, 47, of Memphis, Tennessee, is charged with 12 counts of wire fraud. Flowers was the owner of Ezential Consulting & Management Firm LLC and Rodrick Flowers. He allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of Ezential Consulting & Management Firm LLC, for which he obtained approximately $37,000 in EIDL proceeds and approximately $74,450 in PPP loan proceeds. Flowers also submitted or caused to be submitted eight fraudulent EIDL applications and two fraudulent PPP applications on behalf of entities owned by each of his co-defendants.
- Stephen Brown, 44, of Memphis, is charged with two counts of wire fraud. Brown was the owner and pastor of Light of Glory International Church and Stephen Brown Ministries. He allegedly submitted a fraudulent EIDL application on behalf of Light of Glory International Church and a fraudulent PPP application on behalf of Stephen Brown Ministries, for which he obtained approximately $149,900 in EIDL proceeds.
- LaTonya Herman, 44, of Memphis, is charged with two counts of wire fraud. Herman was the owner of LaTonya Herman. She allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of her business, for which she obtained approximately $93,800 in EIDL proceeds.
- Jarvys Jones, 38, of West Memphis, Arkansas, is charged with two counts of wire fraud. Jones was the owner and pastor of The Temple of Refuge, also referred to as Temple of Refuge Inc, and Refuge. He allegedly submitted a fraudulent EIDL application on behalf of Refuge and a fraudulent PPP application on behalf of Temple of Refuge Inc, for which he obtained approximately $20,000 in EIDL proceeds.
- Brian Mays, 40, of Olive Branch, Mississippi, is charged with one count of wire fraud. Mays was the owner of A-Mays-in-Trucking. He allegedly submitted a fraudulent EIDL application on behalf of his business, for which he obtained approximately $107,400 in EIDL proceeds.
- Diane Moss, 60, of Blytheville, Arkansas, is charged with two counts of wire fraud. Moss was the owner of The Station, Diane’s Boutique, and Diane Moss. She allegedly submitted a fraudulent EIDL application on behalf of The Station and a fraudulent PPP application on behalf of Diane Moss, for which she obtained approximately $99,300 in EIDL proceeds and approximately $28,420 in PPP loan proceeds.
- Mary Payne, 61, of Memphis, is charged with two counts of wire fraud. Payne was the owner of Right Now Staffing LLC. She allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of her business, for which she obtained approximately $4,000 in an EIDL advance.
- Krystal Sherrod, 34, of Memphis, is charged with one count of wire fraud. Sherrod was the owner of Krystal Sherrod. She allegedly submitted a fraudulent EIDL application on behalf of her business for which she obtained approximately $83,300 in EIDL proceeds.
- Frederick Smith, 54, of Cordova, Tennessee, is charged with two counts of wire fraud. Smith was the owner and pastor of New Life Holiness Church. He also owned Fred Smith Ministries and Frederick Smith, and was the owner and trustee in bankruptcy for New Life Holiness BK. Smith allegedly submitted a fraudulent EIDL application on behalf of Fred Smith Ministries and a fraudulent PPP application on behalf of New Life Holiness BK, for which he obtained approximately $150,275 in PPP loan proceeds.
- Cleveland Wells, 65, of Memphis, is charged with two counts of wire fraud. Wells was the owner and pastor of Glory to God Ministries. He also owned Don’t Worry About it Home Solutions, aka Cleveland Wells Jr. dba Don’t Worry About it Home Solutions. Wells allegedly submitted a fraudulent EIDL application on behalf of Glory to God Ministries and a fraudulent PPP application on behalf of Cleveland Wells Jr. dba Don’t Worry About it Home Solutions, for which he obtained approximately $149,900 in EIDL proceeds.
If convicted, they each face a maximum penalty of 20 years in prison on each wire fraud count.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, Special Agent in Charge Mark H. Morini Jr. of the Treasury Inspector General for Tax Administration (TIGTA), Special Agent in Charge Edwin Bonano of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), and Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement.
TIGTA, FHFA-OIG, and FDIC-OIG are investigating the case.
Trial Attorney Ariel Glasner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Carroll Andre for the Western District of Tennessee are prosecuting the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about attempted fraud concerning COVID-19 is encouraged to report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or filing an online complaint at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ten Individuals Charged for $950,000 COVID-19 Relief Fraud SchemesRead the Press Release
Memphis, TN – A federal grand jury in the Western District of Tennessee returned an indictment yesterday charging ten individuals for their roles in schemes to defraud the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP), federal stimulus programs authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, the defendants allegedly obtained funds under the EIDL program and PPP by submitting false and fraudulent loan applications that collectively sought over $950,000. The defendants are alleged to have submitted applications on behalf of businesses and entities they purportedly owned, knowing that the applications contained materially false statements and misrepresentations concerning, among other things, the purported entities’ number of employees, gross revenues, costs of goods sold, average monthly payroll, and the date on which the entities were established. The defendants then allegedly used the loan funds for purposes not authorized by the EIDL program or PPP, including for personal expenses.
Below are the ten defendants and their charges:
- Rodrick Flowers, 47, of Memphis, Tennessee, is charged with 12 counts of wire fraud. Flowers was the owner of Ezential Consulting & Management Firm LLC and Rodrick Flowers. He allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of Ezential Consulting & Management Firm LLC, for which he obtained approximately $37,000 in EIDL proceeds and approximately $74,450 in PPP loan proceeds. Flowers also submitted or caused to be submitted eight fraudulent EIDL applications and two fraudulent PPP applications on behalf of entities owned by each of his co-defendants.
- Stephen Brown, 44, of Memphis, is charged with two counts of wire fraud. Brown was the owner and pastor of Light of Glory International Church and Stephen Brown Ministries. He allegedly submitted a fraudulent EIDL application on behalf of Light of Glory International Church and a fraudulent PPP application on behalf of Stephen Brown Ministries, for which he obtained approximately $149,900 in EIDL proceeds.
- LaTonya Herman, 44, of Memphis, is charged with two counts of wire fraud. Herman was the owner of LaTonya Herman. She allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of her business, for which she obtained approximately $93,800 in EIDL proceeds.
- Jarvys Jones, 38, of West Memphis, Arkansas, is charged with two counts of wire fraud. Jones was the owner and pastor of The Temple of Refuge, also referred to as Temple of Refuge Inc and Refuge. He allegedly submitted a fraudulent EIDL application on behalf of Refuge and a fraudulent PPP application on behalf of Temple of Refuge Inc, for which he obtained approximately $20,000 in EIDL proceeds.
- Brian Mays, 40, of Olive Branch, Mississippi, is charged with one count of wire fraud. Mays was the owner of A-Mays-in-Trucking. He allegedly submitted a fraudulent EIDL application on behalf of his business, for which he obtained approximately $107,400 in EIDL proceeds.
- Diane Moss, 60, of Blytheville, Arkansas, is charged with two counts of wire fraud. Moss was the owner of The Station, Diane’s Boutique, and Diane Moss. She allegedly submitted a fraudulent EIDL application on behalf of The Station and a fraudulent PPP application on behalf of Diane Moss, for which she obtained approximately $99,300 in EIDL proceeds and approximately $28,420 in PPP loan proceeds.
- Mary Payne, 61, of Memphis, is charged with two counts of wire fraud. Payne was the owner of Right Now Staffing LLC. She allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of her business, for which she obtained approximately $4,000 in an EIDL advance.
- Krystall Sherrod, 34, of Memphis, is charged with one count of wire fraud. Sherrod was the owner of Krystal Sherrod. She allegedly submitted a fraudulent EIDL application on behalf of her business for which she obtained approximately $83,300 in EIDL proceeds.
- Frederick Smith, 54, of Cordova, Tennessee, is charged with two counts of wire fraud. Smith was the owner and pastor of New Life Holiness Church. He also owned Fred Smith Ministries and Frederick Smith, and was the owner and trustee in bankruptcy for New Life Holiness BK. Smith allegedly submitted a fraudulent EIDL application on behalf of Fred Smith Ministries and a fraudulent PPP application on behalf of New Life Holiness BK, for which he obtained approximately $150,275 in PPP loan proceeds.
- Cleveland Wells, 65, of Memphis, is charged with two counts of wire fraud. Wells was the owner and pastor of Glory to God Ministries. He also owned Don’t Worry About it Home Solutions, aka Cleveland Wells Jr. dba Don’t Worry About it Home Solutions. Wells allegedly submitted a fraudulent EIDL application on behalf of Glory to God Ministries and a fraudulent PPP application on behalf of Cleveland Wells Jr. dba Don’t Worry About it Home Solutions, for which he obtained approximately $149,900 in EIDL proceeds.
If convicted, they each face a maximum penalty of 20 years in prison on each wire fraud count.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, Special Agent in Charge Mark H. Morini Jr. of the Treasury Inspector General for Tax Administration (TIGTA), Special Agent in Charge Edwin Bonano of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), and Special Agent in Charge Anand Ramiall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement.
TIGTA, FHFA-OIG, and FDIC-OIG are investigating the case.
Trial Attorney Ariel Glasner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Carroll Andre for the Western District of Tennessee are prosecuting the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about attempted fraud concerning COVID-19 is encouraged to report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or filing an online complaint at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Tahlequah Resident Sentenced for Aggravated Sexual Abuse and Abusive Sexual ContactRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jacob Lance Pritchett, age 33, of Tahlequah, Oklahoma, was sentenced to life in prison for one count of Aggravated Sexual Abuse and one count of Abusive Sexual Contact in Indian Country.
The charges arose from investigations by the Federal Bureau of Investigation and the Cherokee Nation Marshal Service.
On July 8, 2022, a federal jury found Pritchett guilty at trial of Aggravated Sexual Abuse of one child over the course of several years, and of a single instance of Abusive Sexual Contact of a second child. The crimes occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation and within the Eastern District of Oklahoma.
“Cases like the one against Mr. Pritchett are some of the most heartbreaking, yet purposeful the FBI can investigate,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “I’m grateful for the efforts of our law enforcement partners and the U.S. Attorney’s Office to ensure he will never be able to harm another child.”
“Although the abuse inflicted on these innocent victims cannot be erased, this office stands committed to ensuring those who abuse children see justice,” said United States Attorney Christopher J. Wilson. “This sentence today brings a measure of assurance that the defendant will never be free to prey on children again.”
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Pritchett will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Morgan Muzljakovich and Nicole Paladino represented the United States.
Springfield Man Indicted After Ramming Airport Gate, Driving onto RunwayRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man has been indicted by a federal grand jury after driving his truck through a gate and onto a runway at the Springfield-Branson National Airport.
Gary Eugene Edwards, 58, was charged with damaging and interfering with an air navigation facility in an indictment returned by a federal grand jury in Springfield on Tuesday, Oct. 10.
The indictment alleges that Edwards caused damage to the Springfield-Branson National Airport and interfered with the operation of the airport on Sunday, Oct. 8, 2023.
Airport police arrested Edwards following a short pursuit after he rammed an airport gate while driving a gold Ford F-150 pickup truck.
An airport police officer activated his emergency lights and siren and attempted to stop Edwards. However, Edwards refused to stop and drove onto the tarmac and runway of the airport, then drove back through the damaged gate as he fled from the officer. Airport police officers pursued Edwards as he drove over several curbs before stopping in front of the terminal building. Edwards ran into the building and was taken into custody.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI and the Springfield-Branson National Airport Police.
Reynoldsburg man pleads guilty to crimes related to robberies, I-70 shootoutRead the Press Release
COLUMBUS, Ohio – Aden Abdullahi Jama, 20, of Reynoldsburg, Ohio, pleaded guilty in U.S. District Court today to being an accessory after the fact to bank robbery, two counts of aiding and abetting robberies and two counts of aiding and abetting the use of a firearm during the robberies.
Jama and Faisal M. Darod, 23, of Columbus, were charged by a federal grand jury in a 10-count superseding indictment on Sept. 27.
The two central Ohio men were allegedly involved in the July 6 shooting of a Columbus police officer. Jama admitted in court today to participating in related crimes on July 5 and July 6.
According to his plea agreement, on July 5, Jama aided and abetted Darod and another individual after they robbed at gunpoint the Fifth Third Bank on Fishinger Road in Upper Arlington. Specifically, Jama met up with the men on West Sixth Avenue in Columbus and drove them to the Baymont Inn and Suites on Morse Road. This allowed Darod and the other individual to abandon a stolen Corvette they used during the robbery.
While at the hotel, Darod and Jama recorded a video on Darod’s cell phone showing Darod lying on the bed surrounded by the recently stolen cash. In the video, Darod raps about “cheese” – i.e., money, being in the air and everywhere.
The next day, on July 6, Jama served as a driver and/or lookout both before and after an armed robbery at Byers Imports in Whitehall.
Shortly after the robbery, Jama and Darod met up with the car thief at townhomes on the southeast side of Columbus. The three men then drove the stolen Porsche Cayenne, sometimes exceeding 100 miles per hour, to Hilliard to commit another armed bank robbery.
Jama again served as the lookout and aided and abetted the armed robbery and the use of a firearm during that robbery at Fifth Third Bank on Hilliard-Rome Road in Hilliard.
Unbeknownst to the three men, Whitehall police detectives had been tracking their movements using the Porsche Cayenne’s onboard GPS system. The detectives surrounded the stolen car at Fifth Third Bank and ordered the men to stop the vehicle. The now-deceased driver drove the stolen Porsche through a gap in the detectives’ cars and fled over a grass embankment onto Hilliard-Rome Road, and, eventually, out to Roberts Road and the freeway.
Columbus police officers then located the stolen vehicle on I-70 traveling eastbound. The men reached speeds more than 125 miles per hour near rush hour while attempting to flee law enforcement.
The vehicle became damaged and came to an abrupt stop before Jama and Darod both fled on foot. The third man used a handgun with an extended magazine to ambush the responding officers. He opened fire from close range and struck one officer. That officer suffered life-threatening injuries. The driver of the stolen vehicle was struck several times and died of his gunshot wounds soon after.
Following the gun battle on I-70, a coordinated manhunt ensued for Jama and Darod. Darod was arrested in Columbus on the evening of July 7. By then, he had conducted several internet searches for flights out of Columbus to Somalia. U.S. Marshals and Homeland Security Investigation agents arrested Jama at Chicago O’Hare International Airport on July 8, bound for Turkey, with an ultimate destination of Somalia.
Aiding and abetting a bank robbery is punishable by up to 20 years in prison. Aiding and abetting the use of a firearm during a crime of violence carries a potential penalty of at least five years and up to life in prison. Being an accessory after the fact of bank robbery is punishable by up to 10 years in prison.
Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court at a later hearing based on the advisory sentencing guidelines and other statutory factors.
Charges remain pending against Darod.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Columbus Police Chief Elaine Bryant; the United States Marshals in Columbus and Chicago; ICE and HSI Chicago; the Whitehall, Minerva Parka and Upper Arlington police departments; and Franklin County Sheriff Dallas Baldwin announced the guilty plea entered this morning before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Noah R. Litton is representing the United States in this case.
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Quincy Man Sentenced to 10 Years for Receipt of Child PornographyRead the Press Release
Spokane – On October 11, 2023, U.S. District Judge Thomas O. Rice sentenced Joseph Thomas Schmitz, 35, of Quincy, Washington, to 120 months in federal prison for Receipt of Child Pornography. Schmitz pleaded guilty on May 11, 2023. Judge Rice also ordered Schmitz to pay $6,000 in restitution to two of his victims and special assessments totaling $7,000 to funds benefitting victims of human trafficking and child pornography crime. Judge Rice further ordered that Schmitz be federally supervised for 10 years after being released from prison.
According to court documents and proceedings, Schmitz was identified as a suspect in May 2021 after his wife called the police and reported finding nude photos of an approximately 11 years old female in a hidden folder on Schmitz’s iPad. Pursuant to search warrants, federal agents searched Schmitz’s electronic devices and iCloud account and found child pornography files linked to 25 previously identified child pornography victims, in addition to more images and videos of the 11-year-old girl. Agents additionally found evidence of Schmitz using the Kik application back to November 2019, frequenting groups dedicated to the viewing and sharing of child sexual abuse and sharing links with others within these groups.
“The sentence imposed in this case recognizes the ongoing and lasting harm caused by child exploitation. It sends a strong message to Mr. Schmitz and others who use what they believe to be online anonymity to exploit the most vulnerable among us,” said United States Attorney Vanessa R. Waldref. “My office prioritizes these offenses against our community’s youngest and most vulnerable and will continue to prosecute those who harm children.
This sentencing is yet another example of the impact federal and state law enforcement partnerships bring to the safety of our communities,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “The success of this case lied in the vigilance of family members and our joint efforts to end further victimization.”
This case was investigated by Homeland Security Investigations and the Quincy Police Department and prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington.
2:21-CR-097-TOR
Pine City Man Pleads Guilty in Multi-Victim Child Exploitation and Child Pornography SchemeRead the Press Release
MINNEAPOLIS – A Pine City man has pleaded guilty to five counts of producing, receiving, and distributing images of child pornography, and coercing and enticing minors to engage in illegal sexual activity, announced U.S. Attorney Andrew M. Luger.
According to his plea agreement and court documents, beginning in or about January 2019, Caleb Vincent McLaughlin, 26, created and used multiple social media accounts and communications applications to solicit and direct at least 14 minor girls between the ages of 11 and 16 years old in Minnesota, and a number of girls as yet to be identified in Minnesota, North Dakota, and elsewhere, to create sexually explicit images and videos to send to him. McLaughlin used a variety of aliases and Snapchat IDs including “Jake Benson,” “Lift11” or “Tech4cm,” in his scheme, and sometimes purported to be 17 years old to prey on minor girls he met online in order to entice and coerce them to create sexually explicit images and videos. In addition to producing child sexual abuse material, McLaughlin offered the minors drugs, alcohol, cash, and gift cards in exchange for sex acts.
On July 17, 2023, McLaughlin was charged in a federal criminal complaint with soliciting, producing, receiving, and distributing images of child pornography, and enticing a child to engage in illegal sexual activity. McLaughlin pleaded guilty today before Chief Judge Patrick J. Schlitz in U.S. District Court in Minneapolis. A sentencing hearing is scheduled for February 13, 2024, at 9:00 a.m.
Law enforcement officials are still working to identify and confirm the identity of many of the minor victims involved. If you believe you or your minor dependent(s) have been victimized by Caleb McLaughlin, please contact the FBI Tip Line at 1-800-CALL-FBI (1-800-225-5324) or tips.fbi.gov.
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. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the FBI, with substantial assistance from the St. Paul Police Department, Pine County Sheriff's Office, and Hennepin County Sheriff’s Office.
Assistant U.S. Attorneys Hillary A. Taylor and Rachel L. Kraker are prosecuting the case.
Penobscot Man Sentenced to 15 Years for Role in Fentanyl Trafficking ConspiracyRead the Press Release
BANGOR, Maine: A Penobscot man was sentenced Tuesday in U.S. District Court in Bangor for conspiring to distribute fentanyl.
U.S. District Judge Lance E. Walker sentenced Christopher Beaucage, 38, to 180 months in prison followed by four years of supervised release.
According to court records, in October 2021, Beaucage and a coconspirator were stopped by an officer from the Bucksport Police Department. After a search of the vehicle revealed approximately 60 grams of fentanyl, Beaucage admitted the fentanyl belonged to him, and he was arrested on outstanding warrants. While he was incarcerated, monitored and recorded phone calls revealed that Beaucage and others continued to engage in drug trafficking activities. Details discussed included traveling out of state to meet with a source, the prices of the narcotics and distributing fentanyl to customers in Maine.
The FBI and Bucksport Police Department investigated the case.
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Pain Clinic Doctor Sentenced to Prison for Unlawful Drug Distribution, Money Laundering, and Filing A False Tax ReturnRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Qing McGaha to seven years and eight months in federal prison for unlawful drug distribution, money laundering, and filing a false tax return. The court also ordered McGaha to forfeit an office condominium, which is traceable to proceeds of the offense, pay $100,000 in criminal fines, and $119,462.34 in restitution to the Internal Revenue Service. As part of her sentence, McGaha also forfeited $774,216.12 in cash seized from her residence and $170,512.34 seized from her two bank accounts, which were proceeds of her criminal conduct. A federal jury had found McGaha guilty on June 16, 2023.
According to court documents, McGaha was a Florida-licensed medical doctor who owned and operated MD Care Clinic, a pain management clinic in Hillsborough County. Over a 20-month period, undercover agents with the Drug Enforcement Administration conducted numerous appointments with McGaha. At each appointment, they received hydrocodone, hydromorphone, or oxycodone, Schedule II controlled substances, not for a legitimate medical purpose in the usual course of professional practice. Between January 2016 and January 2021, McGaha distributed more than 2.1 million opioid pills.
In addition, McGaha engaged in multiple monetary transactions over $10,000 in funds criminally derived from the operation of her clinic. She used these funds to purchase a piece of real property located in Clearwater and deposited the, into her bank account. In 2021, McGaha filed false and fraudulent tax forms for tax year 2020 that underreported MD Care’s gross revenue by nearly $300,000.
“Medical professionals who put personal profit over the safety and health of their patients by prescribing controlled substances without legitimate medical need violate both their oath to ‘do no harm’ as well as the Controlled Substances Act, ” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “This sentence is a testament to the DEA Miami Field Division’s commitment to working with our law enforcement partners to pursue those medical professionals who violate the public’s trust and put our communities at risk.”
“Dr. McGaha greedily ignored her oath to put her patients first - she thought she could get away with using her pill mill to doctor scripts that put harmful drugs on the streets,” said Brian Payne, special agent in charge of the IRS Criminal Investigation, Tampa Field Office. “To make matters worse, she then tried to evade her tax obligations by failing to report the fruits of her crimes to the IRS. The fall of another tax evading pill mill is a victory for all law enforcement involved.”
This case was investigated by the Drug Enforcement Administration—Tampa District Office, the Internal Revenue Service—Criminal Investigation, the Lakeland Police Department, the Tampa Police Department, the Largo Police Department, and by the Opioid Fraud Abuse and Detection Unit at the United States Attorney’s Office, which focuses on opioid-related fraud and abuse by medical and health care professionals who have contributed to the prescription opioid epidemic. This case was also part of the Organized Crime Drug Enforcement Task Force. It was prosecuted by Assistant United States Attorneys Greg Pizzo and Suzanne Nebesky.
Oregon Man Sentenced to 192 Months in PrisonRead the Press Release
FORT WAYNE–Julian Muriera, 30 years old, of Hillsboro, Oregon, was sentenced by United States District Court Judge Damon R. Leichty after being found guilty by a jury of Attempted Child Exploitation, announced United States Attorney Clifford D. Johnson.
Muriera was sentenced to 192 months in prison followed by 5 years of supervised release.
According to documents in the case, between April and May 2019, Muriera engaged in sexually explicit online conversations with an undercover Officer who Muriera believed to be related to a minor with whom he was sexually active. Over the course of several online conversations, Muriera expressed his preference for teenage girls and an interest in watching a livestream of the purported relative engaging in sexual activity with the minor. Muriera also provided graphic detail he wanted to see in the anticipated sexual activity.
This case was investigated by the Federal Bureau of Investigation with assistance from the United States Attorney’s Office for the District of Oregon. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Oneida County Man Sentenced to 25 Years in Prison for Distributing, Transporting and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Chad Srogi, age 40, of Vernon, New York was sentenced today to serve 25 years in federal prison for distributing, transporting, and possessing child pornography. United States Attorney Carla B. Freedman, Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), and New York State Police Acting Superintendent Dominick Chiumento made the announcement.
In previously pleading guilty, Srogi admitted that he distributed and transported child pornography on multiple social media platforms in 2018 and possessed more than a hundred child pornography files in October 2019. He also admitted that, in 2007, he was convicted in Florida of Promoting the Sexual Performance of a Child and Possessing Material Depicting the Sexual Performance of a Child.
In addition to the 300-month imprisonment term, United States District Judge Glenn T. Suddaby also imposed a 25-year term of supervised release to begin after Srogi serves his term of imprisonment. Srogi also will be required to register as a sex offender upon his release from prison and was ordered to pay restitution totaling $9,000 to the identified victims of his offenses.
This case was investigated by U.S. Homeland Security Investigations (HSI) and the New York State Police (Troop D Bureau of Criminal Investigation (BCI) and the Computer Crimes Unit) and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian as part of Project Safe Childhood.
Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Ohkay Owingeh Man Sentenced to 14 Years in Prison for Second Degree MurderRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Fidel Archuleta was sentenced to 14 years in prison. Archuleta, 67, of Ohkay Owingeh, and an enrolled member of the Ohkay Owingeh Pueblo, pled guilty to second degree murder on June 5, 2023
According to court documents, on Dec. 11, 2022, Archuleta stabbed his wife to death in their home on Coral Lane in Ohkay Owingeh. When law enforcement arrived, they found that the security door had been pried open and the victim deceased on the floor. Archuleta was unconscious on a couch nearby with a knife in his hand and three shallow stab wounds to his upper body which were self-inflicted and not life threatening. Archuleta had a long-documented history of domestic violence and had been kicked out of the residence by his wife approximately one week before.
Upon his release from prison, Archuleta will be subject to 5 years of supervised release.
The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Bureau of Indian Affairs and the Ohkay Owingeh Police Department. Assistant United States Attorney Brittany DuChaussee is prosecuting the case.
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Northern District of Georgia honors first graduate of Accountability, Treatment, and Leadership Court programRead the Press Release
ATLANTA - The U.S. Attorney's Office, the U.S. District Court, the Federal Defender Program, Inc., and the U.S. Probation Office honored the first graduate of the Accountability, Treatment, and Leadership Court (ATL Court) program for the Northern District of Georgia.
“We are proud to work with our fellow stakeholders in the criminal justice system to offer the ATL Court as an alternative to incarceration program for our district,” said U.S. Attorney Ryan K. Buchanan. “Through intense supervision and treatment resources, the ATL Court enhances safety in our district by addressing the root causes of the participants’ previous criminal behavior and places them onto a path of crime-free, productive lives.”
“This program is the result of creative, resourceful, and justice-oriented lawyers and other officials. Our Court is grateful to all of them for their outstanding work,” said Timothy C. Batten, Sr., Chief U.S. District Judge for the Northern District of Georgia.
“The ATL Court’s first graduate faced a lengthy prison sentence and, in one year, she has turned her life completely around and earned a sentence of probation,” said Stephanie A. Kearns, Executive Director, Federal Defender Program, Inc. of the Northern District of Georgia. “This shows exactly why the ATL Court is so effective and valuable to all of us, and why it should continue long into the future.”
“History has been made in the Northern District of Georgia,” said Donna M. High, Chief U.S. Probation Officer for the Northern District of Georgia. “The ATL Court is a collaborative effort between several agencies, that requires a lot of time and commitment. The beauty of our collaboration is that it allows us to know more than we can know by ourselves, and when we do it correctly, everyone wins.”
U.S. Attorney Buchanan delivered an address to the program's first graduate and the current class of participants in the program. U.S. Magistrate Judge Catherine M. Salinas delivered remarks and presented the graduate with a diploma, recognizing her graduation from the program. Representatives of the Federal Defender Program, Inc. and the U.S. Probation Office also addressed the program participants.
Through treatment to address the substance use disorder, mental health condition, or other identified need driving participants' criminal conduct, through incentives to reinforce positive behavior, and through sanction alternatives, the ATL Court program provides an alternative to incarceration for federal defendants.
Participants in the program attend bi-monthly court sessions with members of the ATL Court team. The program provides a high level of supervision for its participants which lasts from 12 to 24 months. Successful completion of the program results in a non-custodial sentence, or a reduction of felony charges to a misdemeanor, or dismissal of the federal case.
Launched in 2022, the ATL Court program was created through a collaborative partnership of the U.S. Attorney's Office for the Northern District of Georgia, the Federal Defender Program, Inc., the U.S. District Court for the Northern District of Georgia, and the U.S. Probation Office. Further description of the program is available at https://www.gand.uscourts.gov/accountability-treatment-and-leadership-court-“atl-court”.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.
Nineteen-Year-Old Man Sentenced to 27 Months in Prison for Trafficking 3D-Printed “Glock Switches” and “Auto-Sears”Read the Press Release
PEORIA, Ill. – A Washington, Illinois, man, Zavien James Ross, 19, was sentenced today to 27 months in prison, to be followed by three years of supervised release, after pleading guilty to possession of machineguns.
According to court documents, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives made two separate undercover purchases of Glock switches from Ross in November 2022, purchasing a total of nine 3D-printed Glock switches and one 3D-printed auto-sear designed for an AR-15 rifle. Machinegun conversion devices, sometimes called “Glock switches” or “auto-sears,” are devices that convert ordinary semiautomatic firearms into fully automatic machineguns. Machinegun conversion devices are themselves considered machineguns under federal law, even when not installed, and are illegal to possess or sell in almost all cases.
Later in the investigation Ross was arrested by the Peoria Police Department on November 28, 2022, for possessing a firearm in a car during a traffic stop. On November 29, 2022, ATF agents conducted a search of Ross’s residence and located a 3D printer, five additional 3D printed Glock switches, and two 3D printed pistol lower receivers.
Ross was arrested and then indicted in February 2022. He was released on bond with pre-trial conditions. However, a petition for revocation of bond was filed in September 2023 when a probation officer found various pieces of counterfeit money and forged checks during a home visit. Ross surrendered shortly thereafter and has remained in the custody of the U.S. Marshals Service.
The statutory penalties for possession of machineguns are up to 10 years’ imprisonment, up to a three-year term of supervised release, and a possible fine of $250,000. Ross also has pending charges in Peoria County, Illinois, for unlawful use of a weapon and possession of a firearm without a Firearm Owners Identification card.
ATF investigated the case, with the assistance of the Peoria Police Department. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Ross 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.
Nine Arrested in Operation Targeting Ulster County Drug Trafficking OrganizationRead the Press Release
ALBANY, NEW YORK – Nine defendants have been indicted and arrested for their roles in a drug trafficking organization that distributed large quantities of cocaine and fentanyl in Kingston, Ellenville and other areas of Ulster County.
The announcement was made by United States Attorney Carla B. Freedman; Ivan J. Arvelo, Special Agent in Charge of Homeland Security Investigations (HSI), New York; and Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT).
The organization is alleged to have distributed kilogram quantities of cocaine and fentanyl between March 2021 and January 2023, in Kingston, Ellenville and other areas of Ulster County. In executing search warrants on multiple residences in Ellenville, White Plains, the Bronx and Manhattan, law enforcement seized approximately 4 kilograms of fentanyl, 500 grams of cocaine, $600,000 in drug proceeds, and five firearms. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
United States Attorney Carla Freedman stated: “With today’s arrests we have dismantled an organization that brought large quantities of cocaine and fentanyl into the Hudson Valley. This case is the result of the close collaboration among federal, state and local law enforcement agencies that produces successful and significant drug trafficking prosecutions in Ulster County.”
HSI Special Agent in Charge Ivan Arvelo stated: “These 9 individuals are accused of drug-related crimes, all of which were allegedly part of their unlawful pursuit of money and power. But that ends today. HSI New York is proud to have partnered with the Ulster County Sheriff’s Office and New York State Police. Our shared commitment toward accomplishing our ultimate goal — justice — knows no bounds.”
Ulster County Sheriff Juan Figueroa stated: “Today’s operation is the culmination of hard work and collaboration between the U.S. Attorney's Office for the Northern District of New York, the Department of Homeland Security Investigations, the Ulster County Sheriff's Office, New York State Police, Ulster County District Attorney's Office and our Ulster Regional Gang Enforcement Task Force. Today we dismantled a drug trafficking organization that would have continued to distribute fentanyl in New York City, Westchester County and the Hudson Valley that could have killed people. The crimes associated with this organization and the negative impact they had on our communities cannot be understated. Great job to all of the agencies involved.”
The defendants arrested to date, all of whom are charged with conspiracy to distribute and possess with intent to distribute controlled substances, would face the following minimum and maximum terms of imprisonment upon conviction:
Name
Age
Residence
Minimum Term of Imprisonment
Maximum Term of Imprisonment
Christopher Baez, aka “Butta”
45
Manhattan, New York
10 years
Life
Joseph Logan, aka “Jazz” aka “Jabb”
32
Ellenville, New York
5 years
40 years
Joshua Morales, aka “Young”
34
Ellenville
5 years
40 years
Joshua Atkinson, aka “Swaggs”
26
Ellenville
10 years
Life
Luis Santiago, aka “Banks”
35
Ellenville
10 years
Life
Frankie Maldonado Jr.
36
Ellenville
5 years
40 years
Justin Torres
35
Ellenville
5 years
40 years
Erkan Denix, aka “E” aka “Ed”
38
Ellenville
5 years
40 years
Daryl Livingston, aka “Whiz”
35
Huguenot, New York
None
20 years
Additionally, Deniz is charged with possession with intent to distribute cocaine, Atkinson is charged with distribution of cocaine and fentanyl, and Santiago is charged with possession with intent to distribute cocaine and fentanyl.
This case is being investigated by HSI; the Ulster County Sheriff’s Office in conjunction with URGENT (the Ulster Regional Gang Enforcement and Narcotics Team), an inter-agency taskforce targeting drug dealers and gang members in Ulster County; the New York State Police; the Village of Ellenville Police Department; and the White Plains Police Department, with assistance from the Ulster County District Attorney’s Office. Assistant U.S. Attorneys Emmet O’Hanlon and Ashlyn Miranda are prosecuting this case.
This case 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.