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Thursday 24 August 2023
Imperial Valley Doctor Admits Using Unapproved Cosmetic Drugs for YearsRead the Press Release
NEWS RELEASE SUMMARY – August 24, 2023
SAN DIEGO – Tien Tan Vo, a doctor practicing in Imperial Valley, has pleaded guilty to crimes related to his years-long use of foreign unapproved and misbranded cosmetic drugs.
Vo pleaded guilty to misdemeanor counts of receipt of misbranded drugs in interstate commerce and being an accessory after the fact to an accomplice, who smuggled the unapproved drugs into the United States from Mexico.
In his plea agreement, Vo admitted that none of the injectable botulinum toxin or lip fillers used by his clinics between November 2016 and October 2020 was approved for use in the United States. This specifically included a botulinum toxin product called “Xeomeen” and an injectable lip filler called Probcel—both products that have not been approved by the U.S. Food and Drug Administration.
Vo acknowledged that he received $100,767 in gross receipts for almost four years of cosmetic services performed with unapproved drugs and devices. As part of his plea agreement, he has agreed to forfeit that amount, and to pay a fine of $201,534. Vo also agreed to pay restitution to victims of his offense.
In his plea agreement, Vo admitted purchasing most of his unapproved drugs and devices from the operator of a “med spa” in Mexicali, Mexico, who smuggled them into the United States without declaring them.
“All members of our community should be able to trust that their doctor is acting in their best interest,” said Acting U.S. Attorney Andrew Haden. “Through this prosecution, we are protecting patients from unapproved and potentially unsafe drugs and will always seek to thwart those who would exploit patients for financial gain.”
“Injecting unapproved medicines poses a significant threat to public health and can have serious consequences for individuals,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “Together, with our partnered agencies, we need to educate people of the dangers caused by using unauthorized botulinum toxin (the active ingredient in Botox®, Xeomin®, and similar products) and thwart those who smuggle and illegally use it for cosmetic procedures.”
“The FDA’s requirements help ensure that patients receive safe and effective medical treatments. Evading the FDA process and distributing unapproved drugs to U.S. consumers will not be tolerated,” said Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations, Los Angeles Field Office. “We will continue to investigate and hold accountable those who traffic in unapproved drugs.”
Sentencing is set for November 16, 2023, at 9:30 a.m. before U.S. Magistrate Judge Allison H. Goddard.
Potential victims related to this case may provide or request information by emailing [email protected].
DEFENDANT Case Number 23cr1700
Tien Tan Vo Age: 47 El Centro, CA
SUMMARY OF CHARGES
Accessory After the Fact to Entry of Goods by Means of False Statement – Title 18, U.S.C., Sections 542 and 3
Maximum penalty: One year in prison, fine of $100,000 or twice the pecuniary gain or loss
Receipt in Interstate Commerce of Misbranded Drugs and Delivery for Pay or Otherwise – Title 21, U.S.C., Sections 331(c) and 333(a)(1)
Maximum penalty: One year in prison, fine of $1,000 or twice the pecuniary gain or loss
AGENCIES
Homeland Security Investigations
U.S. Food and Drug Administration, Office of Criminal Investigations
Federal Bureau of Investigation
U.S. Department of Health and Human Services, Office of Inspector General
Illinois Man Sentenced to 14 Years in Prison for Distributing Child PornographyRead the Press Release
Defendant Sent Hundreds of Images and Videos of Child Sexual Abuse Material to Undercover Officer
WASHINGTON – Daniel Mahnke, 35, of Manteno, Illinois, was sentenced today to 168 months in prison, followed by 10 years of supervised release, for distribution of child pornography. The announcement was made by U.S. Attorney Matthew M. Graves and Acting Special Agent in Charge David Geist, of the FBI Washington Field Office’s Criminal and Cyber Division.
According to the government’s evidence, in December of 2020, the defendant was using the website Rapey.SU, a social media site where countless users discussed the sexual exploitation of children, bestiality, and hardcore child pornography. During the course of the investigation, Mahnke began communicating with an individual he believed had a child, but who turned out to be law enforcement acting in an undercover capacity (UC). Believing that he was communicating with a pedophile, Mahnke requested that the UC send him sexually explicit photos of the UC’s fictitious child. Mahnke told the UC that he would send child pornography and, in fact, sent the UC a link containing hundreds of videos and images of child pornography.
Mahnke was arrested on December 11, 2020, and charged with distribution of child pornography. He has been detained ever since. Mahnke pled guilty on January 6, 2023, in the U.S. District Court for the District of Columbia.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
In announcing the sentence, U.S. Attorney Graves and Acting Special Agent in Charge Geist commended the work of those who investigated the case from the FBI's Child Exploitation and Human Trafficking Task Force, which includes members of the FBI's Washington Field Office and the Metropolitan Police Department’s (MPD) Youth Investigations Division. They also commended the work of Assistant U.S. Attorney Caroline Burrell, who prosecuted the case.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Hudson County Man Sentenced to 23 Months in Prison for Participation in Conspiracy to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 23 months in prison for conspiring to possess fentanyl with the intent to distribute, U.S. Attorney Philip R. Sellinger announced.
Miguel Polanco, 31, of Union City, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of a substance containing a detectable amount of fentanyl. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In May 2021, U.S. Customs and Border Protection agents intercepted a package being shipped from Mexico City, Mexico, to Polanco at his apartment. The package contained fentanyl. Prior to receiving the package, Polanco received a video from a conspirator explaining how to properly remove the bags of fentanyl concealed inside to minimize the damage to its contents. Polanco also engaged in multiple conversations with conspirators how much fentanyl he would receive and where to deliver it. Polanco was to be paid for receiving and transporting the fentanyl.
In addition to the prison term, Judge Arleo sentenced Polanco to four years of supervised release.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark and Deputy Special Agent in Charge Alejandro Amaro in Laredo, Texas; U.S. Custom and Border Protection officers – under the direction of Port Director Albert Flores in Laredo and Port Director TenaVel Thomas, Port of New York/Newark; postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; and the Elizabeth Police Department, under the direction of Chief Giacommo Sacca, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Houma Man Sentenced to 21 Years for Federal Drug and Gun CrimesRead the Press Release
NEW ORLEANS, LOUISIANA – JOSHUA BOGEN, age 32, a resident of Houma, Louisiana, was sentenced on August 23, 2023 to 252 months imprisonment, 5 years of supervised release, and a $400 mandatory special assessment fee, announced U.S. Attorney Duane A. Evans. BOGEN previously pleaded guilty to possession with intent to distribute methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), brandishing a firearm during and in relation to the commission of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii), felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1), and assaulting a federal officer, in violation of Title 18, United States Code, Section 111(b).
According to court documents, on October 18, 2021, Drug Enforcement Administration (DEA) agents received information that BOGEN, a convicted felon, would be transporting approximately two pounds of crystal methamphetamine from Houma, Louisiana to a residence in New Orleans to conduct a drug deal. Upon arriving at the residence, BOGEN got out of his vehicle carrying a large bag containing 1009.9 grams of pure methamphetamine and a Glock Model 26, Gen 4, nine-millimeter semi-automatic handgun, that had a round in the chamber. DEA agents then turned on their surveillance unit’s flashing blue lights and began to exit the vehicle. Immediately after an agent opened their door, BOGEN brandished his handgun and pointed it directly at one of the agents. Agents then moved to take cover at the rear of the unit and one shot was fired in BOGEN’s direction. BOGEN, who was not wounded, then threw the handgun and the large bag of methamphetamine over the fence that lined the driveway of the residence and surrendered.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Drug Enforcement Administration. The prosecution was handled by Assistant United States Attorney J. Benjamin Myers of Narcotics Unit.
Honduran national convicted after cross-country trip against minor’s willRead the Press Release
HOUSTON – A 33-year-old man who illegally resided in Houston has pleaded guilty to interstate travel with intent to engage in a sex act with a minor, announced U.S. Attorney Alamdar S. Hamdani.
In June 2020, Wilmer Rivera-Hernandez took a 15-year-old female on what was supposed to be a date. However, the event ended up being a three-day trip across the country against the victim’s will.
The young female told Rivera-Hernandez to take her home, but he refused and drove her out of the Houston area. During the drive, he bought alcohol and forced her to drink it, threatening her and her family if she refused to obey him. He kept her in a state of intoxication so she could not recognize where she was. He also kept her cell phone which prevented her from seeking help.
On one evening during the trip, Rivera-Hernandez took the minor victim to a motel near Little Rock, Arkansas, where he raped her.
She attempted to get help on two occasions after getting temporary access to her phone. One was unsuccessful, but she was eventually able to text her family members and told them he could kill her and to call the police. Authorities were quickly able to find Rivera-Hernandez and the victim in his car which was parked at a truck stop in Knoxville, Tennessee.
While in custody, Rivera-Hernandez also attempted to obstruct justice. He arranged for the distribution of fabricated WhatsApp messages purporting to be that of the minor victim. In them, he made it appear the minor had recanted her claims of kidnapping and rape and hoped it would lead to the dismissal of the charges. He was unsuccessful when the investigation revealed the messages originated from him.
U.S. District Judge George C. Hanks Jr. will impose sentencing Nov. 20. At that time, Rivera-Hernandez faces up to life in federal prison.
Department of State’s Diplomatic Security Service conducted the investigation with assistance from Homeland Security Investigations. Sheriff’s Offices in Montgomery County, Texas, and Knox County, Tennessee, assisted with the victim’s rescue. Assistant U.S. Attorneys Sharad Khandelwal and Stephanie Bauman prosecuted the case.
Greece Man Going to Prison on Child Pornography ChargesRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Jason Lane, 28, of Greece, NY, who was convicted of receipt of child pornography, was sentenced to serve 60 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that in July and August 2022, the National Center for Missing and Exploited Children (NCMEC) received tips from Yahoo that a user uploaded approximately 260 files of possible child pornography to a Yahoo email account. NCMEC forwarded the information to the New York State Police and a subsequent investigation traced the files to an IP address belonging to Lane, a former Town of Greece police recruit, who was terminated following a probationary period. The files include an image of a partially nude preschool-aged child, which appears to have been taken at a childcare facility in the Rochester, NY, area. The files also include sexually explicit images of two minor victims (Victim 1 and Victim 2), that appear to have been taken by Lane.
On August 9, 2022, the NYSP executed a search warrant at a residence in Brighton, NY, and seized a cellular phone belonging to Lane. A second search warrant was executed at a residence in Greece, NY. A forensic analysis of the phone recovered child pornography. A search warrant was also executed on Lane’s Yahoo account. That search recovered additional images of child pornography that were produced by Lane, in images that Lane obtained via the internet, and images of students at Spencerport High School that appear to have been take surreptitiously by Lane when he worked as a security guard at the school.
The sentencing is the result of an investigation by the New York State Police, under the direction of Major Brian J. Ratajczak, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
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Grand jury indicts local man for submitting false PPP loan applicationRead the Press Release
CINCINNATI – A Cincinnati man is charged with wire fraud as part of a scheme to fraudulently obtain a Covid relief loan.
Kelton McClarrin, 32, allegedly received nearly $21,000 from the Paycheck Protection Program (PPP) under false pretenses and used the money for personal expenditures including jail commissary services, CashApp, Grubhub, DoorDash, Facebook purchases and hotels.
McClarrin was brought into federal custody today.
According to the indictment, McClarrin applied for a Covid relief loan on May 16, 2021, falsely claiming in the application that he was the sole owner of a business named “Kelton McClarrin.” McClarrin claimed his business was established in 2019 and had a gross income of $100,000 for that year. It is alleged that McClarrin also submitted a forged bank statement in support of the loan application.
McClarrin was sentenced to two years in prison in a Hamilton County case on May 7, 2019. He remained incarcerated until Nov. 17, 2020, when he was paroled to a halfway house. He used the address of the halfway house as his business address on the loan application.
In April 2022, McClarrin applied for loan forgiveness for the $21,000 PPP loan. He stated on the application forms that he had 20 employees and had spent $20,000 of the loan on payroll costs.
Wire fraud is punishable by up to 30 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the charges. The case was investigated by the Social Security’s Office of Inspector General, with assistance from the U.S. Department of Labor Office of Inspector General, the U.S. Marshals, and the Ohio Department of Rehabilitation and Corrections. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Former employee of an online used car retailer indicted for wire fraud for more than $2 million embezzlement schemeRead the Press Release
Seattle – A 40-year-old California man, who previously resided in Tacoma, Washington was indicted this week by a federal grand jury on five counts of wire fraud for his scheme to steal more than $2 million from his employer, announced Acting U.S. Attorney Tessa M. Gorman. John Whisenant was arrested on a criminal complaint last month. He will be arraigned on the indictment at a future court date.
According to records filed in the case, Whisenant worked in a variety of roles at the online used car sales company beginning in October 2018. About a year after he began with the company, Whisenant was promoted into a role where he had access to the company bank accounts and accounting software.
Beginning in about June 2019 and continuing until November 2021, Whisenant used his access to make 57 wire transfers totaling over $2 million into accounts he controlled. Whisenant disguised the transfers as legitimate business expenses in the company’s accounting software with a variety of false entries. The indictment charges five of the transfers as representative counts but asks for forfeiture of the entire $2 million+ loss.
According to the criminal complaint filed earlier this month, Whisenant used the money for a lavish lifestyle. He bought luxury automobiles such Porches and Mercedes. He spent $123,096 for a 2022 Audi E-Tron and bought a $98,100 Tesla. He rented luxury homes in Southern California and purchased two airline tickets to Paris at a cost of nearly $23,000 each.
The fraud on the company accounts was discovered when a bookkeeper began a more comprehensive review of the company’s financials in January 2022. Whisenant resigned abruptly in February 2022.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Sean Waite.
whisenant_indictment.pdfFormer Federal Correctional Officer Sentenced to Prison for Sexual Abuse of an InmateRead the Press Release
A former federal correctional officer was sentenced to three months in prison, followed by five years of supervised release – the first three months of supervised release will be on home detention – for sexual abuse of an individual in federal custody. He will also pay a $1,000 fine, a $5,000 Justice for Victims of Trafficking Act assessment, a $100 special monetary assessment, and be required to register as a sex offender and be subject to all sex offender conditions.
According to court documents, between October 2021, and August 2022, Lenton Jerome Hatten, 54, of Tallahassee, Florida, engaged in repeated sexual acts with an inmate while employed as a sports specialist for the Bureau of Prisons (BOP) at the Federal Correctional Institution in Tallahassee (FCI Tallahassee). Immediately after being reported, a forensic examination was conducted of the victim by a sexual assault nurse examiner. DNA evidence confirmed a likely link between Hatten and the victim.
At the time of the report, Hatten was on vacation leave and when made aware, he resigned his position. As such, Hatten had no further contact with inmates.
“As this prosecution demonstrates, the Department of Justice remains dedicated to rooting out sexual misconduct at the Bureau of Prisons,” said Deputy Attorney General Lisa O. Monaco. “Any BOP employee who abuses their position of authority and mistreats those in their custody will be held accountable.”
“No inmate should ever experience sexual abuse or abuse of any kind at the hands of a Bureau of Prisons employee. My office will continue to aggressively pursue justice for victims of such heinous acts,” said Inspector General Michael E. Horowitz.
“Without exception, all people, including those serving sentences in correctional facilities, are entitled to protection of their physical safety and civil rights” said FBI Deputy Director Paul Abbate. “This defendant repeatedly sexually abused an inmate in his care and thanks to the victim’s bravery in coming forward, future abuse has been prevented. Today’s case shows that the FBI will investigate anyone who violates federal law, regardless of their position, and hold those responsible for enforcing it to the highest standard.”
“The abuse of any inmate by correctional officers is intolerable,” said U.S. Attorney Coody for the Northern District of Florida. “Sentences of confinement are imposed to account for the inmate’s criminal conduct and afford educational and vocational skills to aid in rehabilitation. The inmate’s dignity and safety are not surrendered at the prison door. This office will vigorously investigate and prosecute any officer who violates their oath through abuse of inmates entrusted to their care and custody.”
The DOJ-OIG and FBI investigated the case.
Assistant U.S. Attorney James A. McCain for the Northern District of Florida prosecuted the case.
Former Department of Labor Agent Sentenced to 33 Months’ Imprisonment for Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Special Agent with the Department of Labor, Thomas Hartley, age 49, of East Stroudsburg, Pennsylvania, was sentenced on August 23, 2023, by U.S. District Court Judge Robert D. Mariani, to 33 months’ imprisonment on the charge of mail fraud in connection with multiple schemes to commit fraud.
According to United States Attorney Gerard M. Karam, Hartley previously pleaded guilty and admitted that he obtained a total of $197,366 through multiple fraud schemes. Between April 2020 and September 2021, Hartley applied for and collected Pennsylvania unemployment compensation benefits by claiming that he was unemployed, when in fact Hartley was employed on full time active duty with the New Jersey National Guard. Further, in applying for unemployment benefits, the defendant failed to disclose that he was on military leave from his full-time federal civilian employment with the United States Department of Labor. Hartley thereby utilized the mail to collect approximately $60,284 in unemployment compensation funds to which he was not entitled.
Hartley also fraudulently obtained $23,582 in Basic Allowance for Housing (BAH) funds paid by the Department of the Army, $50,000 in “lost wage” benefits paid by USAA insurance, and $63,500 from his Thrift Savings Plan.
In August 2022, a grand jury issued a second superseding indictment charging Hartley with multiple fraud schemes. In addition to the scheme to fraudulently obtaining Pennsylvania unemployment compensation funds, the second superseding indictment also charged that Hartley, while on leave from his position with the Department of Labor and serving with the New Jersey National Guard, submitted false documents to the Department of the Army and thereby obtained approximately $23,580 in housing allowance funds to which he was not entitled.
The second superseding indictment also charged Hartley with fraud in connection with the filing of a lost wage claim with USAA Insurance following an automobile accident. Hartley falsely claimed that he had lost wages, resulting from an automobile accident, when in fact Hartley was suspended without pay from his employment with the Department of Labor as a result of an ongoing criminal investigation. Hartley thereby collected approximately $50,000 in lost wage benefits to which he was not entitled.
Finally, the second superseding indictment charged Hartley with fraudulently obtaining funds from his Thrift Savings Plan (TSP) by falsely claiming that he was not married, when in fact he was at all times married. Hartley thereby transferred the funds to himself personally, or to a bank account solely in his name, without the knowledge or consent of his wife.
The charges against the defendant resulted from an investigation conducted by the Department of Labor, Office of Inspector General, Office of Special Investigations; the United States Army, Criminal Investigation Division; and the USAA Insurance Special Investigations Unit. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
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Former Columbia Falls woman sentenced to two years in prison for fraudRead the Press Release
MISSOULA — A former Columbia Falls woman who admitted to defrauding Montana victims by creating and cashing fraudulent checks was sentenced today to two years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Joanna Marie Snyder, 59, of Boston, Massachusetts, and formerly of Columbia Falls, pleaded guilty in April to wire fraud.
U.S. District Judge Dana L. Christensen presided. The court also ordered $7,299 restitution.
The government alleged in court documents that in September and October 2019, Snyder engaged in a scheme to create counterfeit $20 Federal Reserve notes and obtained the identities and bank account information of Montana victims to create and cash fraudulent checks. An investigation found 19 fraudulently cashed checks drawn off a hospitality account associated with a Kalispell business. Several of the hospitality checks were made out to Snyder and had been deposited into accounts owned by Snyder at the Whitefish Credit Union.
The U.S. Attorney’s Office prosecuted the case. The U.S. Secret Service, Polson Police Department, Kalispell Police Department, Columbia Falls Police Department and Flathead County Sheriff’s Office conducted the investigation.
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Former Chief of Staff to Speaker of the Illinois House Convicted of Lying Under Oath to Federal Grand JuryRead the Press Release
CHICAGO — The former Chief of Staff to the Speaker of the Illinois House of Representatives was convicted today of providing false material testimony under oath to a federal grand jury and attempting to obstruct its investigation into allegations of public corruption.
A jury in U.S. District Court in Chicago found TIMOTHY MAPES, 68, of Springfield, Ill., guilty of one count of making false declarations before a grand jury and one count of attempted obstruction of justice. U.S. District Judge John F. Kness set sentencing for Jan. 10, 2024. The obstruction of justice conviction is punishable by up to 20 years in federal prison, while the false declaration conviction carries a maximum sentence of five years.
The convictions were 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 IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Julia Schwartz and Diane MacArthur.
“Perjury and obstruction of justice are serious offenses that strike at the heart of the truth-seeking mission of the grand jury,” said Acting U.S. Attorney Pasqual. “This conviction should stand as a clear message to witnesses who choose to violate their oath to tell the truth before a grand jury that they will be held accountable.”
"There is no justice without truth,” said FBI SAC Wheeler. “Attempts to undermine the prosecutorial process chip away at trust in our institutions, and this conviction shows that we continue to work with our partners to ensure the integrity of our judicial system."
“Citizens should expect that former public officials will maintain their integrity and be truthful even when it is inconvenient,” said IRS-CI SAC Campbell. “The investigation that resulted in this conviction is a testament to IRS-CI’s and our law enforcement partners’ commitment to ensuring that individuals who do not testify truthfully in the grand jury will be brought to justice.”
Evidence presented at the nearly three-week trial revealed that the grand jury was investigating possible violations of federal criminal law, including efforts by the Speaker of the House and a consultant acting on the Speaker’s behalf to obtain for others private jobs, contracts, and monetary payments, including from Commonwealth Edison (“ComEd”), the largest electric utility in Illinois, to influence and reward the Speaker in the Speaker’s official capacity.
Mapes was granted immunity prior to his testimony before the grand jury. The immunity order provided that testimony or evidence provided by Mapes could not be used against him in a criminal case, except for perjury, giving a false statement, or otherwise failing to comply with the immunity order.
When Mapes appeared before the grand jury on March 31, 2021, he knowingly made false material declarations in response to several questions about the consultant’s relationship with the Speaker from 2017 to 2019. Mapes denied knowing that the consultant acted as an agent or performed work for the Speaker during those years, when, in fact, Mapes knew that the consultant carried out work and assignments on behalf of the Speaker and communicated messages on the Speaker’s behalf.
Five Amazon Marketplace Sellers and Four Amazon Marketplace Companies Sentenced for Price FixingRead the Press Release
KNOXVILLE, Tenn. – Five individuals and four companies have been sentenced for participating in a conspiracy to fix the prices of DVDs and Blu-Ray Discs sold on the Amazon marketplace. This investigation has resulted in a total of six individual guilty pleas and four corporate guilty pleas.
Victor Btesh, of New York, was sentenced to 18 months’ incarceration, followed by two years of supervised release, and a fine of $38,000; Btesh’s three companies, Michelle’s DVD Funhouse, MJR Prime, and Prime Brooklyn, were each respectively sentenced to a $156,520, $125,688, and $61,844 criminal fine on August 23, 2023, in the U.S. District Court for the Eastern District of Tennessee.
Additionally, Emmanuel Hourizadeh, Raymond Nouvahian, Morris Sutton, Bruce Fish, and Fish’s company, BDF Enterprises, Inc. were all sentenced on July 21, 2023, also in the U.S. District Court for the Eastern District of Tennessee. Hourizadeh, and Nouvahian, both of New York, were sentenced to one month’s imprisonment, seven months home confinement, a criminal fine of $55,000 each, and two years of supervised release; Sutton, of New Jersey, was sentenced to one month’s imprisonment, five months home confinement, a $20,000 criminal fine, and two years of supervised released; Fish, of Minnesota, was sentenced to six months’ imprisonment, six months’ home confinement, a $48,750 criminal fine, and two years of supervised released; and Fish’s company, BDF Enterprises, was sentenced to a $234,000 criminal fine.
“Americans are becoming increasingly reliant on online marketplaces, making it more important as ever to protect them from being cheated on the internet,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “These sentences reflect the Division’s commitment to seeking punishment for criminal antitrust violations wherever they may occur.” “Conspiring to fix prices in online marketplaces is a federal crime,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “These convictions and sentences demonstrate our office’s commitment to prosecuting price-fixing conspiracies and to protecting consumers in the Eastern District of Tennessee from paying inflated prices in online marketplaces.”
“Activities related to price fixing and collusion do not promote an environment conducive to open competition, ultimately harming the consumer,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service (USPS) Office of Inspector General. “The sentencings in this case represent a win for all law enforcement agencies who investigate those who engage in this type of harmful conduct to ensure that justice is served.”According to court documents, these defendants agreed with co-conspirators to raise and maintain the prices of DVDs and Blu-Rays sold through Amazon marketplace storefronts, resulting in those products being sold at collusive and noncompetitive prices. Hourizadeh, Nouvahian, and Sutton pleaded guilty to price fixing on January 7, 2022. Btesh and all three corporate entities pleaded guilty to price fixing on February 9, 2023, after having been indicted on March 16, 2022. Lastly, Fish and BDF Enterprises pleaded guilty to price fixing on February 10, 2023, after having been indicted on March 16, 2022.
Amazon Marketplace is an e-commerce platform that enables third-party vendors to sell new or used products alongside Amazon’s own offerings. Amazon Marketplace is owned and operated by Amazon.com, Inc.
Trial Attorneys Robert M. Jacobs, Kevin C. Culum, Elizabeth K. Noonan-Pomada, and Nickolas R. Foran from the Antitrust Division’s Chicago Office and Assistant U.S. Attorney William A. Roach, Jr. for the Eastern District of Tennessee prosecuted the case. The case was investigated with the assistance of the FBI’s New York Field Office and the USPS Office of Inspector General’s Contract Fraud Investigations Division.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258 or visit http://www.justice.gov/atr/report-violations.
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Father and Son Each Sentenced to More Than 12 Years in Federal Prison for a Drug Trafficking ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Scott Anthony Williams, age 45, of Laurel, Maryland and Taeyan Raymond Williams, age 26, of Morgantown, West Virginia to 23 years and 12.5 years in federal prison, respectively, each followed by five years of supervised release, for a drug trafficking conspiracy and for possession with intent to distribute controlled substances. Scott Williams was also convicted for conspiracy to destroy and conceal evidence related to these crimes. At sentencing, Judge Chuang gave the defendants an above guidelines sentence, in part, because he found that, at a minimum, Scott Williams and Taeyan Williams knew of, took advantage of, and profited from the murder of their marijuana supplier.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration (“DEA”), Washington Division; and Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore.
According to the evidence presented at the twelve-day trial, from approximately October 2017 until April 6, 2018, the victim sold and distributed marijuana and marijuana products to Scott Williams (“S. Williams”), Taeyan Williams (“T. Williams”), their family members, and associates. The defendants sold the products received from the victim to other distributors for resale and to end drug users. The defendants also sold and distributed cocaine to the victim for further distribution. As a result of various transactions between the defendants and the victim, T. Williams and members of his family, including S. Williams, became indebted to the victim. According to witness testimony, on April 6, 2018, the victim planned to meet with T. Williams and S. Williams to discuss the debt that they owed to the victim, and to provide the defendants with marijuana and marijuana products.
As detailed in trial testimony, shortly before that meeting, the victim’s supplier in California had a large shipment of marijuana and marijuana products delivered to the victim’s storage unit in Jessup, Maryland. Trial evidence showed that on April 5, 2018, and April 6, 2018, the victim retrieved controlled substances from his storage unit in Jessup, Maryland and stayed at a short-term rental property in Baltimore, Maryland. On the afternoon of April 6, the victim traveled from Baltimore to Laurel, Maryland, where S. Williams lived. Location data reflects that at 1:32 p.m., the victim was approximately 1.5 miles from Scott Williams’ residence. On April 6, 2018, at approximately 1:52 p.m., the victim saved a note to a ledger and accounting of marijuana that the victim sold to T. Williams and monies paid or owed from him, which the victim maintained in his email account.
The government presented evidence that on April 7, 2018, conspirators drove the victim’s vehicle to a Baltimore parking lot where they parked the vehicle, cleaned it, and then drove away in S. Williams’s rented car. The victim’s DNA and blood were later recovered from the rear bumper, lift gate, passenger side door frame, and trunk carpeting of the victim’s abandoned vehicle. Further, the evidence showed that between 8:37 p.m. on April 6, 2018, and 8:31 p.m. on April 8, 2018, someone in S. Williams’s rented car used the victim’s PIN number to enter the Jessup storage facility. Between April 8, 2018, and June 6, 2018, the defendants hid the victim’s drugs in S. Williams’ home in Laurel. When law enforcement executed a search warrant at the home on June 6, 2018, they recovered large quantities of marijuana, cocaine, and methamphetamine, as well as four firearms: a 9mm handgun; a 7.62 caliber-rifle; a .38 caliber handgun; and a .25 caliber handgun. A copy of the victim’s ledger was also found under S. Williams’ bed in the home. The body of the victim was never located.
During sentencing, Judge Chuang found that the death of the victim was connected to the drug conspiracy for which S. Williams and T. Williams were convicted; that the defendants knew of the killing of the victim; and that the defendants took advantage of the situation by taking the victim’s marijuana and profiting from it.
Finally, the evidence also proved that between June 6, 2018, and his initial appearance on federal charges in January 2019, S. Williams sought to conceal and destroy evidence related to the ongoing investigation, including by asking an associate to delete information from his electronic storage account and phone.
United States Attorney Erek L. Barron commended the Maryland State Police, the DEA, and HSI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Leah B. Grossi, William D. Moomau, and Michael C. Hanlon who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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El Departamento de Justicia entabla pleito contra SpaceX por discriminar a asilados y refugiados en la contrataciónRead the Press Release
El Departamento de Justicia entabló pleito hoy contra Space Exploration Technologies Corporation (SpaceX) por discriminar a asilados y refugiados en la contratación. El pleito alega que, desde al menos septiembre del 2018 hasta mayo del 2022, SpaceX, de forma rutinaria, desalentaba a asilados y refugiados de solicitar un empleo y se negó a contratar o considerarlos debido a su estatus de ciudadanía, en contra de la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
A lo largo de varios años, en los anuncios de trabajo y declaraciones públicas, SpaceX mantenía erróneamente que, según unos reglamentos federales conocidos como «leyes de control de la exportación», SpaceX solamente podía contratar a ciudadanos y residentes permanentes legales de los EE. UU., a veces denominados «titulares de una tarjeta verde». Las leyes de control de la exportación no imponen tales restricciones a la contratación. Más aún, el permiso de los asilados y refugiados de vivir y trabajar en los Estados Unidos no vence, y en virtud de las leyes de control de la exportación, están en condiciones de igualdad con ciudadanos y residentes permanente legales de los EE. UU. De acuerdo con estas leyes, compañías como SpaceX pueden contratar a asilados y refugiados para los mismos puestos para los que contratarían a ciudadanos y residentes permanentes legales de los EE. UU. Y una vez contratados, los asilados y refugiados pueden acceder a información y materiales controlados por la exportación sin la necesidad de contar con una aprobación gubernamental adicional, al igual que ciudadanos y residentes permanentes legales de los EE. UU.
«Nuestra investigación halló que SpaceX no consideró de manera justa ni tampoco contrató a los asilados y refugiados debido a su estatus de ciudadanía, e impuso lo que equivalía a una prohibición de su contratación independientemente de su cualificación, en violación de la ley federal», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Nuestra investigación también halló que reclutadores y funcionarios de alto rango de SpaceX tomaron medidas para disuadir activamente a los asilados y refugiados de buscar oportunidades de trabajo en la compañía. Los asilados y refugiados han superado muchos desafíos en sus vidas, y la discriminación ilícita en el empleo, con base en su estatus de ciudadanía, no debería ser uno de ellos. Por medio de este pleito haremos que SpaceX rinda cuentas por sus prácticas ilícitas y buscaremos un remedio que permita a los asilados y refugiados competir de manera justa por las oportunidades de trabajo y contribuir sus talentos a la mano de obra de SpaceX».
El pleito del Departamento alega que SpaceX discriminó a asilados y refugiados por motivos de su estatus de ciudadanía en múltiples fases del proceso de contratación. Por ejemplo:
- SpaceX desalentó a asilados y refugiados de solicitar puestos disponibles, mediante anuncios públicos, solicitudes de trabajo y otras comunicaciones virtuales de reclutamiento que excluyeron a asilados y refugiados.
- SpaceX no consideró de manera justa las solicitudes entregadas por asilados y refugiados.
- SpaceX se negó a contratar a postulantes cualificados que eran asilados o refugiados y se rechazó en repetidas ocasiones las solicitudes de asilados y refugiados debido a su estatus de ciudadanía.
- SpaceX contrató únicamente a ciudadanos y residentes permanente legales de los EE. UU. entre septiembre de 2018 y septiembre de 2020.
SpaceX recluta y contrata para una variedad de puestos, incluyendo soldadores, cocineros, operadores de grúa, baristas y lavaplatos, así como especialistas en la tecnología informática, ingenieros de software, analistas de negocios, ingenieros de cohetes y profesionales de la comercialización. Los puestos en cuestión en el pleito no se limitan a trabajos que requieren títulos avanzados.
Los asilados y refugiados son migrantes a los Estados Unidos que han fugado de la persecución. Para poder obtener su estatus, necesitan someterse a un proceso riguroso de investigación por parte del Gobierno de los Estados Unidos. Conforme a la INA, los empleadores no pueden discriminarlos en la contratación a menos que una ley, un reglamento, una orden ejecutiva o un contrato gubernamental así lo requiera al empleador. En este caso, no hubo ninguna ley, reglamento, orden ejecutiva o contrato gubernamental que hubiese requerido o permitido que SpaceX practicara la discriminación, de manera generalizada, a asilados y refugiados, que la investigación del Departamento halló, tal y como se explica en la demanda.
Puesto que SpaceX trabaja con ciertos bienes, software, tecnología y datos técnicos (a los que se refiere aquí como artículos de exportación controlada) SpaceX debe cumplir con los reglamentos y leyes de control de la exportación, lo que incluye los Reglamentos sobre el Tráfico Internacional de Armas y los Reglamentos de Administración de Exportaciones. Conforme a estos reglamentos, los asilados, refugiados, residentes permanentes legales, ciudadanos estadounidenses y nacionales de los EE. UU. que trabajan para compañías estadounidenses pueden acceder a artículos de exportación controlada sin la autorización del Gobierno de los EE. UU. Por lo tanto, estas leyes no requieren que SpaceX trate a asilados y refugiados de una manera diferente que a ciudadanos de los EE. UU. o titulares de tarjetas verdes. Puede encontrar más información aquí sobre cómo los empleadores pueden evitar la discriminación a la hora de cumplir con los requisitos para el control de exportaciones.
Estados Unidos pide la consideración justa y pagos retroactivos para aquellos asilados y refugiados a los que se les desalentó o denegó un empleo en SpaceX como resultado de la alegada discriminación. Por otra parte, Estados Unidos pide que se aplique una sanción civil por el monto que determinará el tribunal y exige que cambie sus políticas para garantizar su cumplimiento con el mandato antidiscriminatorio de la INA de aquí en adelante.
Le rogamos que se comunique con la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División de Derechos Civiles del departamento a [email protected] o 1-888-473-3845 si usted es o era asilado o refugiado que experimentó alguna de las siguientes situaciones en un momento dado:
(1) Solicitó un trabajo en SpaceX y fue rechazado.
(2) Se le desalentó de solicitar un empleo en SpaceX porque no era ciudadano o residente permanente legal de los EE. UU.
(3) Un reclutador u otro empleado de SpaceX le dijo que SpaceX únicamente podía contratar a ciudadanos o residentes permanentes legales de los EE. UU.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; represalias; e intimidación.
Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir noticias por correo electrónico de la IER.
ComplaintDorchester Man Sentenced for Role in Online ScamsRead the Press Release
BOSTON – A Dorchester man was sentenced today in federal court in Boston for his role in online romance scams targeting individuals in the United States.
Mike Oziegbe Amiegbe, 45, was sentenced by U.S. District Court Judge Indira Talwani to six months in prison, three months of home confinement, and three years of supervised release. Amiegbe was also ordered to pay $828,325 in forfeiture and restitution to victims. In February 2022, Amiegbe pleaded guilty to one count of conspiracy to commit mail fraud.
From 2017 through 2020, Amiegbe opened bank accounts using fake passports in others’ names to receive the proceeds from online scams, including romance scams. The romance scammers used fake identities to communicate with victims through online social networks and gained the victims’ affection and trust. The scammers then tricked the victims into sending money to Amiegbe. After Amiegbe received the victims’ money, he withdrew the fraud proceeds in cash or with a cashier’s check and sent the money to his co-conspirators overseas.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and William Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Office of Investigations, New York Field Office made the announcement today. Assistant U.S. Attorneys Christopher Markham and Kristen Kearney of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Dominican Republic Man Pleads Guilty to Illegally Re-Entering the United StatesRead the Press Release
JOHNSTOWN, Pa. – A resident of the Dominican Republic, pleaded guilty in federal court to a charge of illegal reentry by a deported alien, United States Attorney Eric G. Olshan announced today.
Rudys Osvaldo Torres, age 50, of the Dominican Republic, pleaded guilty to Count One of the Indictment before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, the court was advised that on or about March 15, 2021, Torres, an alien who had previously been deported and removed from the United States, and who had knowingly, intentionally, and unlawfully reentered the United States, was found in the United States in Somerset County, Pennsylvania without having applied for and received permission from the Secretary of the Department of Homeland Security to reenter the United States.
Judge Haines scheduled sentencing for December 18, 2023. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Bureau of Immigration and Customs Enforcement conducted the investigation that led to the prosecution of Torres.
Doctor Pleads Guilty to Role in Antitrust Conspiracy That Limited Cancer Patients’ Options for Life Saving Care in Southwest FloridaRead the Press Release
A medical oncologist and former president and managing partner of Florida Cancer Specialists & Research Institute LLC (FCS) pleaded guilty yesterday to conspiracy to allocate oncology treatments for cancer patients in Southwest Florida.
According to court documents filed in the U.S. District Court in Ft. Myers, Florida, Dr. William Harwin participated in a conspiracy from 1999 to September 2016 to suppress competition by agreeing to allocate chemotherapy treatments for cancer patients to FCS and radiation treatments to another oncology company in Lee, Collier, and Charlotte Counties.
Harwin pleaded guilty to one count of violating Section One of the Sherman Act. Sentencing will take place at a future date as set by the court. A federal district court judge will impose sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“This long-running criminal conspiracy denied cancer patients access to a competitive marketplace for lifesaving oncology treatments,” said Acting Director of Criminal Enforcement Emma Burnham of the Justice Department’s Antitrust Division. “The Antitrust Division will not hesitate to prosecute health care providers who choose profits over patients.”
“The FBI will not stand by and allow those trusted with saving lives to manipulate the health care system for their own benefit,” said Special Agent in Charge David Walker of the FBI Tampa Field Office. “This investigation demonstrates the commitment of the FBI and its partners to protect patient care and the healthcare marketplace.”
In April 2020, FCS was charged for its role in the same criminal conspiracy and entered into a deferred prosecution agreement resolving the charge against the company, under which it admitted to conspiring to allocate chemotherapy and radiation treatments for cancer patients. Under the agreement, FCS agreed to pay a $100 million criminal penalty and to cooperate fully with the Antitrust Division’s ongoing investigation.
The FBI Tampa Field Office – Fort Myers RA investigated the case.
Assistant Chief Mark Grundvig, Senior Trial Counsel Eun-Ha Kim and Trial Attorneys Patrick Hallagan and Aidan McCarthy of the Antitrust Division’s Washington Criminal II Section are prosecuting the case, with the assistance of the U.S. Attorney’s Office for the Middle District of Florida.
Anyone with information in connection with this investigation or other antitrust violations should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations.
Columbia County Man Pleads Guilty to Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Christopher Stickles, age 35, of Copake, New York, pled guilty today to receiving child pornography.
United States Attorney Carla B. Freedman and Alfred Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Stickles admitted that between January 2021 and August 2022, he accessed the Internet in order to visit file-sharing sites and websites that contained child pornography. Stickles further admitted that while on these sites, he downloaded more than 15,000 still image and video files that contained child pornography.
At sentencing on December 20, 2023, before United States District Judge Anne M. Nardacci, Stickles faces at least 5 years and up to 20 years in prison. The judge will also be required to impose a term of post-release supervision of at least 5 years and up to a life term. The court may also impose a fine, restitution, and forfeiture of the computer Stickles used to commit his offense. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Stickles will also have to register as a sex offender upon his release from prison.
This case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, which includes FBI special agents, and state and local investigators, including members of the New York State Police. The Internet Crimes Against Children (ICAC) Task Force assisted the investigation.
Assistant U.S. Attorney Rick Belliss is prosecuting the case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Cherokee, N.C. Man Is Sentenced to Prison for Trafficking MethamphetamineRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced a Cherokee, North Carolina man for possession with intent to distribute methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Edward Dwayne Taylor, who is 35 years old and an Enrolled Member of the Eastern Band of Cherokee Indians, was ordered to serve 87 months in prison, followed by five years of supervised release.
Chief Carla Neadeau of the Cherokee Indian Police Department (CIPD) joins U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, on June 4, 2021, a CIPD officer conducted a traffic stop of a vehicle in Cherokee, knowing that the driver was operating the vehicle with a suspended license. Taylor was one of the passengers in the vehicle. Over the course of the traffic stop, law enforcement recovered from another passenger a bag that contained more than 130 grams of methamphetamine, digital scales, and small plastic baggies, items that are consistent with drug distribution. Court documents show that over the course of the investigation CIPD officers determined that the methamphetamine belonged to Taylor, and that the other passenger had agreed to hide the drugs at Taylor’s request.
Taylor is in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked CIPD for their investigation of the case.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
California Man Pleads Guilty to Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS – PEDRO VAZQUEZ, age 31, of California, pled guilty on August 15, 2023, before Chief United States District Judge Nannette Jolivette Brown to a two-count superseding bill of information charging him with conspiracy to distribute and possess with the intent to distribute five hundred (500) grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(A), and 846, and possession with intent to distribute five hundred (500) grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, VAZQUEZ and others known and unknown to the U.S. Attorney, conspired to distribute and possess with intent to distribute approximately 49.7 kilograms of methamphetamine. In addition, VAZQUEZ drove to Metairie, Louisiana to conduct a narcotics transaction that consisted of approximately 100 pounds of methamphetamine.
VAZQUEZ is scheduled to be sentenced on December 7, 2023, and faces a mandatory minimum sentence of 10 years, up to a maximum of life imprisonment, a fine of up to $10,000,000, at least 5 years of supervised release per count as well as a mandatory $100 special assessment fee per count.
This case was investigated by the Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Broome County Man Sentenced for Making Interstate Threats to Member of CongressRead the Press Release
SYRACUSE, NEW YORK – Joseph F. Morelli, age 51, of Endicott, New York was sentenced today to serve three months in prison for making threatening phone calls from his home to the voicemail in the office of a member of Congress in Washington, D.C.
United States Attorney Carla B. Freedman and Alfred Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement. Morelli was ordered to surrender to prison on October 2, 2023. Chief U.S. District Judge Brenda K. Sannes also ordered Morelli to serve a three-year term of supervised release after completing his sentence of incarceration. The Court directed the parties to further brief the issue of restitution sought by the victim for a decision at a later date.
As part of his guilty plea, Morelli admitted to that on March 3, 2022, he placed a telephone call to the Washington, D.C. office of a member of the U.S. House Representatives that said in part, ““I'm gonna have to take your life into my own hands… I'm gonna hurt you. Physically, I’m gonna harm you.”
A second voicemail message on March 3, 2022, said in part, “I'm gonna have to show you, to your face, right up front, what violence truly is, and I don't think you're gonna like it.… I can pay someone 500 bucks to take a baseball bat and crack your skull. …You are going to get f**king physically hurt.”
A third voicemail message on March 3, 2022, included, “you're gonna cause people to get hurt, so I'm gonna have to hurt you physically. … I'm gonna make sure that, even if they lock me up, someone's gonna get you ‘cause I'll pay them to.”
The Federal Bureau of Investigation (FBI) and the United States Capitol Police investigated the case. Assistant U.S. Attorney Richard Southwick was the prosecutor.
Brooklyn Man Indicted for Kidnapping Five Women and Numerous Other CrimesRead the Press Release
A 20-count superseding indictment was filed yesterday in federal court in Brooklyn charging Chad Barclay with interstate prostitution, Hobbs Act robbery, kidnapping, access device fraud, aggravated identity theft, witness tampering, and obstruction of an official proceeding. Those crimes involve five female victims. In addition, one male was the victim of access device fraud and aggravated identify theft. Barclay was arrested in May 2023 and ordered detained pending trial. Barclay will be arraigned on the superseding indictment at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the superseding indictment.
“As alleged, the defendant is a dangerous criminal who sexually assaulted and robbed multiple vulnerable women while using fear to make them his prisoners,” stated United States Attorney Peace. “I commend the prosecutors and FBI Special Agents for bringing this serial offender to justice. Anyone who believes they are a victim of a crime committed by Barclay is asked to contact the United States Attorney’s Office at https://www.justice.gov/usao-edny/report-crime or the FBI.”
“Barclay is alleged to have callously sexually assaulted, robbed multiple women, or both through threats of violence and coercion. This type of criminal behavior has no place in our communities. Today’s indictment serves as a notice to any individual who willingly uses threats and intimidation to commit sexual assault and other violent crimes—the FBI will ensure you face punishment in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith.
As alleged in court filings, from September 2022 to May 2023, Barclay engaged in a criminal pattern of enticing women, some of whom were contacted through online escort websites, to meet with him, and then sexually assaulting and/or robbing them. After luring them to his apartment in Brooklyn, Barclay sexually assaulted multiple female victims, instilling fear and confining them for hours in his apartment. Barclay also compelled the victims to unlock their phones so he could take control of the phones and transfer thousands of dollars to himself through various financial platforms. On several occasions, Barclay stole the victims’ bank cards and used them to make unauthorized ATM withdrawals. In some cases, Barclay asked his victims personal questions in an attempt to identify whether they had friends and family in New York or lived alone, and accessed their phones to gather personal information about them—including where they lived and whether they had children—to further coerce them into complying with his demands.
If you are a victim or have information, there are several ways to contact the FBI: send a tip online at tips.fbi.gov or call 1-800-CALL-FBI. The FBI is ready to work with callers in their native language and regardless of your immigration status.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of kidnapping, Barclay faces up to 20 years in prison.
The government’s case is being prosecuted by Assistant United States Attorneys Andy Palacio and Lorena Michelen.
The Defendant:
CHAD BARCLAY
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket No. 23-CR-242 (S-1) (FB)
Belchertown Man Convicted of Social Security FraudRead the Press Release
BOSTON – A Belchertown man was convicted today by a federal jury of fraudulently receiving Social Security disability benefits.
Kenneth Pontz, 59, was convicted following a three-day jury trial of one count of theft of public funds. Pontz was arrested and charged in June 2022. He is scheduled to be sentenced on Jan. 4, 2024.
Over a period of more than six years, Pontz stole approximately $49,929 in Social Security disability benefits.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Belchertown Police Chief Kevin Pacunas made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg and Assistant U.S. Attorney Neil L. Desroches of the Criminal Division prosecuted the case.
Bartlesville Teenager sentenced for MurderRead the Press Release
TULSA Okla. – A Cherokee teenager was sentenced yesterday to more than 17 years in federal prison for second degree murder of a toddler, announced U.S. Attorney Clint Johnson.
U.S. District Chief Judge John F Heil III sentenced Cherokee citizen Terry Nathan Hindman, 19, of Bartlesville to 17 years and 6 months in federal prison followed by 5 years of supervised release.
“This young child suffered horrible abuse and a tragic death from the abuse of Terry Hindman,” said U.S. Attorney Clint Johnson. “The U.S. Attorney’s Office and our law enforcement partners will continue to fight for justice against those who harm Oklahoma’s children.”
During the sentencing, Judge Heil addressed the family saying that he “would like to create a sentence that will heal the pain, but I can’t do that.” He further addressed the defendant stating, “You can’t possibly make up for the damage you’ve done, but moving forward you can try.”
The father of the victim addressed the court about Hindman before sentencing and said, “I fear he enjoyed giving him (the child) something to cry about;” and “What possible excuse could you have for torturing a child?” The father further stated, “Our memories of our son are now haunted by memories of pain.”
In a statement read to the court, Dylan Chapman, the uncle of the victim said, “Words cannot fully capture the depth of pain our family has suffered. There is nothing more heartbreaking than seeing a dying child.”
During his plea on May 9, 2022, Hindman admitted that on Sept. 29, 2021, he threw the 23-month-old victim causing the injuries that killed him. Hindman stated that he intentionally threw the victim “from across the room onto a couch in the apartment with excessive force.” Hindman said the child “hit his head on the wall behind the couch and landed on a table in front of the couch striking his head. Afterwards, he stumbled around and seem dazed.” Hindman did not seek medical attention for the toddler and did not tell anyone of the incident, including doctors when the child was taken to the hospital later that day.
Hindman further admitted that on Oct. 2, 2021, he was again watching the child when he began having medical problems and appeared to be having a hard time breathing. Hindman stated, “I did not seek medical care,” but the toddler was taken to the hospital and “I again failed to tell anyone of his previous injury.”
The child died from blunt force trauma on Oct. 7, 2021, because of his original injury on Sept. 29, 2021.
Hindman will remain in custody of the U.S. Marshal Service pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bartlesville Police Department and FBI investigated the case.
Assistant U.S. Attorneys Chantelle Dial and Shannon Cozzoni prosecuted the case.
Auto Zone robber sent to prisonRead the Press Release
HOUSTON –A 31-year-old Houston resident has been ordered to federal prison following his convictions on two counts of Hobbs Act robberies as well as discharging a firearm during one of the crimes, announced U.S. Attorney Alamdar S. Hamdani.
Dominique Andrews pleaded guilty May 2, admitting he robbed two Auto Zone locations in Houston.
U.S. District David Hittner has now handed Andrews a 180-month term of imprisonment for the two robberies. He also received 120 months for the firearms discharge which must be served consecutively to the other sentence imposed. The total 300-month prison term will be immediately followed by five years of supervised release. In handing down the sentence, the court noted Andrews had a significant criminal history of violence and stated that an upward variance from the sentencing guidelines was warranted. In addition, he ordered restitution to the victims in both robberies.
“The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Crime Gun Strike Force will continue to aggressively investigate armed robbery crews not only to remove criminals from the streets but to reduce the trauma endured by the victims involved in these violent crimes,” said ATF Special Agent in Charge Fred Milanowski.
On Feb. 4, 2022, Andrews entered the Auto Zone on Cullen Boulevard and robbed an employee at gunpoint. He produced a silver semi-automatic firearm and demanded money from the victim. Fearing for her life, the employee complied. Andrews also took two car scanners. During the robbery, he discharged a round from his firearm.
The same day, Andrews went to another Auto Zone on Telephone Road. He again produced a silver semi-automatic firearm and demanded money from the employee victim. Andrews discharged several rounds from the firearm he was carrying while in the commission of the robbery. Andrews got more money and fled.
Andrews has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF and the Houston Police Department conducted the investigation.
The ATF Crime Gun Strike Force is an ATF led, multi-agency approach, that utilizes crime gun intelligence and investigative resources to combat firearms related violent crime in the Greater Houston Area.
This case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative which combines personnel and resources from numerous federal, state and local agencies. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts and enhancing training, public awareness and education. It stems from the Project Safe Neighborhoods (PSN) Program. 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.
Assistant U.S. Attorney Joe Porto is prosecuting the case.
Assistant District Attorney Charles Minor Appointed as Special Assistant United States AttorneyRead the Press Release
CHATTANOOGA, Tenn. – United States Attorney Francis M. Hamilton III announced the appointment of Assistant District Attorney (“ADA”) Charles Minor to serve as a Special Assistant U.S. Attorney (“SAUSA”) in the Criminal Division of the U.S. Attorney’s Office in Chattanooga, Tennessee. This appointment is the result of a partnership between the U.S. Attorney’s Office and the Hamilton County District Attorney’s Office.
“Due to the extraordinary proliferation of crimes against children originating on the internet, we have joined efforts with District Attorney Coty Wamp to fight crimes against children by a adding a specially appointed federal prosecutor to work these types of cases,” said U.S. Attorney Francis M. Hamilton III. “As a SAUSA, ADA Minor will work with the district’s Project Safe Childhood program and other Assistant U.S. Attorneys to improve the program’s effectiveness. We are grateful that District Attorney Wamp is willing to share her talent with our office to combat dangerous predators who relentlessly use the internet to exploit the most vulnerable members of our community. ADA Minor has developed a great working relationship with federal agents and task force officers over the years, and his record shows he is dedicated to ending the exploitation of children.”
“When my office realized there was a way in which we could partner with the U.S. Attorney’s Office and federal agencies to ensure prosecution for offenders who prey on children, we knew it was something we wanted to be involved in,” said District Attorney Coty Wamp. “ADA Minor stepped up and has made these cases a priority. We are very proud of this partnership.”
Charles Minor has worked as an Assistant District Attorney for Hamilton County since 2006, where he has focused on prosecuting child abuse and child exploitation cases, homicide, violent crimes, and drug cases. He holds a Bachelor of Arts from the University of Tennessee Chattanooga and a Juris Doctorate from the Northeastern University in Boston, Massachusetts.
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Armed Henderson Drug Trafficker Sentenced to 15 Years in PrisonRead the Press Release
RALEIGH, N.C. – A Henderson man was sentenced today to 180 months in prison for trafficking fentanyl and possession of firearms. On March 20, 2023, Neno King, 31, pled guilty to conspiracy to distribute and possess with the intent to distribute a quantity of heroin and fentanyl, possession with the intent to distribute a quantity of fentanyl, and possession of a firearm by a felon.
“The Henderson Police Department has made major investments in the federal partnership and the people of Henderson are safer for it,” said U.S. Attorney Michael Easley. “This city is bringing every law enforcement tool to fight the opioid crisis, and we are proud to partner with state and local police and prosecutors to fight fentanyl trafficking and save lives.”
Chief Marcus Barrow of Henderson PD stated: “This is just another example of our collective efforts to make our community safer. I’m hopeful the impact is felt across our community.”
According to court documents and other information presented in court, law enforcement conducted multiple controlled purchases of heroin suspected of containing fentanyl from King in the Spring of 2022. In March 2022, agents executed a search warrant at King’s residence in Henderson where they recovered three firearms and a substance containing fentanyl.
King has prior felony convictions for possession with the intent to manufacture, sell, or deliver heroin (2013), possession of heroin (2015), possession with the intent to manufacture, sell, or deliver heroin (2016), and fleeing and eluding arrest in a motor vehicle (2016).
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Henderson Police Department, the North Carolina State Bureau of Investigation and the Drug Enforcement Administration investigated the case and Assistant U.S. Attorney Casey L. Peaden prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00335-BO.
Arkansas Man Gets 70 Months in BOP for Trafficking Methamphetamine to IllinoisRead the Press Release
EAST ST. LOUIS, Ill. – A man from Arkansas was sentenced to 70 months in federal prison Wednesday after he admitted to transporting 11 pounds of crystal methamphetamine to Fairview Heights, Illinois.
Leonardo A. Hernandez, 50, of Bentonville, Arkansas, pleaded guilty to one count of possession with intent to distribute a controlled substance. In addition to the prison sentence, he will serve two years of supervised release.
Co-defendant Luis A. Aguilar-Caldera, 31, of Chula Vista, California, pleaded guilty to one count of possession with intent to distribute a controlled substance and was sentenced to 70 months imprisonment on April 12, 2023. After serving his sentence, he will be placed on supervised release for two years.
“Out-of-state drug dealers frequent southern Illinois roadways to execute plans for distribution across the country,” said U.S. Attorney Rachelle Aud Crowe. “DEA plays a critical role to help disband criminal drug rings, and I thank the agents who worked this case.”
According to court documents, a confidential informant working with the DEA set up a controlled purchase of methamphetamine from a Mexico-based supplier in May 2021. The individual met two men in a Ford F-150 at the Flying J truck stop in Alorton, Illinois.
Hernandez was driving and Aguilar-Caldera was the passenger in the truck that was pulling a lawn mower on a trailer. The men told the confidential source there were 11 pounds of methamphetamine located in the tires of the lawn mower.
As the Ford F-150 and the confidential source were driving to a mechanic shop to remove the tires and retrieve the drugs, DEA agents conducted a traffic stop in Fairview Heights and arrested the men in the truck.
The Drug Enforcement Administration led the investigation, and Assistant U.S. Attorney Daniel Carraway prosecuted the case.
Antigua Man Arrested 13 Years After Being Charged with Racketeering in Connection with Illegal Gambling RingRead the Press Release
BOSTON – An Antigua man has been arrested more than a decade after being charged in connection with his participation in a large-scale illegal gambling business which utilized an Antiguan Internet site but operated in the continental United States.
Richard Sullivan, 73, of St. John’s, Antigua, was indicted by a federal grand jury in Boston in August 2010 with racketeering (RICO), operating an illegal gambling business, transmission of wagering information, money laundering and interstate travel in aid of racketeering. Sullivan was arrested on Aug. 20, 2023 at John F. Kennedy International Airport in New York while proceeding through customs upon his return to the United States from Antigua. Sullivan was arraigned in the Eastern District of New York on Aug. 21, 2023 and will appear in federal court in Boston at a later date.
This prosecution marked one of the first times that individuals were charged with violating the Unlawful Internet Gambling Enforcement Act (UIGEA), and the first in Massachusetts. The UIGEA statute was enacted in 2006 to deter the use of the U.S. banking system to pay Internet gambling debts incurred by U.S. citizens. Sullivan and his co-defendants are charged with over 75 counts of engaging in U.S. banking transactions involving U.S.-based gamblers to pay gambling debts owed to Sports Offshore.
According to the indictment, Sullivan and his three co-conspirators – Todd Lyons, Robert Eremian and Daniel Eremian – operated Sports Offshore, an online gambling site licensed in Antigua that was actually operating in the United States, conducting an illegal gambling business that stretched from Massachusetts to Florida. It is alleged that Sports Offshore used an Internet site and toll-free telephone line registered in Antigua to service United States customers. The ring also allegedly employed approximately 50 gambling agents in the United States, who solicited hundreds of customers and collected gambling debts, forwarding the illegal gambling proceeds to Antigua.
To conceal the conspiracy, Sullivan and his co-conspirators allegedly created numerous fictitious entities with no legitimate business purpose to launder the proceeds of their illegal gambling business so that authorities could not detect U.S.-based financial transactions involving Sports Offshore.
Sullivan allegedly managed the daily activities of Sports Offshore at its gambling office in St. John’s, Antigua. In that capacity, Sullivan allegedly supervised approximately 30-50 employees who accepted wagers from customers in the United States that were placed over the telephone and the Internet. It is alleged that Sullivan directed collection activities regarding customers and agents located in the United States who owed money to Sports Offshore. Sullivan also allegedly served as an agent for Sports Offshore, in that he was responsible for a group of Massachusetts customers who gambled with Sports Offshore and he earned commissions on gambling losses incurred by those customers. It is further alleged that Sullivan utilized individuals who resided in Massachusetts to collect money from his Massachusetts customers which he had shipped directly to Antigua via the mail.
In total, Sullivan and his co-conspirators allegedly collected over $22 million for Sports Offshore through the illegal gambling operation and laundered more than $10 million in checks and wire transfers.
In December 2011, Lyons and Daniel Eremian were convicted following a five-week jury for their roles in the conspiracy. Lyons was sentenced to four years in prison, one year of supervised release and was ordered to forfeit $24.6 million. Daniel Eremian was sentenced to three years in prison, one year of supervised release and was ordered to forfeit $7.7 million.
The charge of racketeering provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of operating an illegal gambling business provides for a sentence of up to five years in prison, and up to two years of supervised release and a fine of up to $250,000. The charge of transmission of wagering information provides for a sentence of up to two years in prison, and up to one year of supervised release and a fine of up to $250,000. The charge of money laundering provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000. The charge of interstate travel in aid of racketeering provides for a sentence of up to five years in prison, and up to two years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Harry Chavis, Jr., Special Agent in Charge of Internal Revenue Service, Criminal Investigation, Boston Field Office; Brian Kyes, United States Marshal for the District of Massachusetts; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the United States Attorney’s Office for the Eastern District of New York and the Essex County District Attorney’s Office. Assistant U.S. Attorney Dustin Chao, Chief of the Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wednesday 23 August 2023
Woman Who Aided Robber of ATM Workers in St. Louis County SentencedRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Tuesday sentenced a woman who helped in the robbery of workers servicing an ATM in St. Louis County, Missouri to 56 months in prison.
Gregreonia Hampton, 21, drove the robber to the Vantage Credit Union on May 31, 2022, where he robbed two employees of ATM Solutions with a fully-automatic Anderson Manufacturing AM-15 firearm. When Hampton pleaded guilty in May to a charge of aiding and abetting a robbery, she admitted having enough foreknowledge of the robbery that she could have walked away.
The robber, 21-year-old Mark Anthony Diggs, was sentenced last month to 121 months in prison. Diggs pleaded guilty in April to one robbery charge and one count of possession and brandishing a firearm in furtherance of a crime of violence.
Both Diggs and Hampton were ordered to repay the money they stole.
The St. Louis County Police Department, the FBI, the Missouri State Highway Patrol and the St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney Linda Lane is prosecuting the case.
United States Obtains $607,284 Crop Insurance False Claims Act Judgment Against Klickitat County Farm OwnerRead the Press Release
Yakima, WA – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that the United States had successfully obtained a $607,284 fraud judgment against Rick T. Gray (Gray) and Gray Farms & Cattle Co. LLC (Gray Farms) for submitting false and fraudulent claims for crop insurance for farm businesses owned by Gray in Klickitat County, Washington. The Court determined that Gray and Gray Farms were liable under the False Claims Act for defrauding the federal crop insurance program, and imposed the maximum damages and penalties sought by the United States.
The federal crop insurance program, run by the United States Department of Agriculture (USDA), provides a mechanism through which participating farm owners may obtain monetary subsidies and financial protection against losses to their crops. If a participating farm owner experiences loss due to weather or other factors, the farm owner may submit a claim for indemnity from those losses. Crucial to participation in the program is that the farm owner must disclose all sales of product during a given crop year. In 2015, Gray submitted claims for loss on behalf of his farm businesses and received hundreds of thousands of dollars in indemnity payments.
In September 2021, the United States filed a Complaint pursuant to the False Claims Act, a federal statute that protects the public from fraud against federal programs, alleging that Gray had submitted false crop insurance claims during 2015 by knowingly failing to disclose tens of thousands of bushels of wheat that Gray sold during that crop year, and affirmatively misrepresenting his wheat production and sales for the year. In a judicial order dated August 21, 2023, United States District Judge Thomas O. Rice granted summary judgment on behalf of the United States with respect to the United States’ False Claims Act claims, finding that the undisputed evidence demonstrated that Gray knowingly submitted false claims and made false statements material to payment by knowingly failing to disclose and misrepresenting more than 35,000 bushels of wheat that he sold during crop year 2015, leading to Gray fraudulently receiving $180,428 in indemnity payments to which he was not entitled.
The False Claims Act calls for treble (triple) damages as well as additional penalties for each false claim submitted. Therefore, in addition to finding both Gray and Gray Farms liable, the Court imposed total judgment of $607,284 in treble damages and the maximum possible penalties.
“The Federal Crop Insurance program was created in the wake of staggering losses, poverty, and famine caused by the Dust Bowl,” said United States Attorney Waldref. “It not only protects our farmers and farm workers, but protects our community’s food supply, and helps to keep food affordable. Attempting to cheat the system by claiming losses for crops that in fact were not lost but that the farm owner successfully sold, is simply unconscionable. I’m so grateful for the exceptional investigative and analytical expert work performed by the USDA’s Office of Inspector General and the USDA’s Risk Management Agency, which uncovered this fraud during a thorough investigation, and then continued to support the public’s interest during protracted litigation. This case demonstrates that we will work tirelessly and aggressively with our law enforcement partners to pursue fraud against vital programs and to keep our communities safe and strong.”
USDA Risk Management Agency Administrator Marcia Bunger said, “We will continue to uphold the public’s trust in the crop insurance program by working closely with the Office of Inspector General, the Department of Justice and other government agencies to ensure the successful investigation and prosecution of cases involving crop insurance fraud, waste and abuse. The court’s determination in this case should serve as a strong deterrent to others who may contemplate similar actions.”
The investigation was handled by the USDA Office of Inspector General and the USDA Risk Management Agency, Special Investigations Group, while the civil enforcement action was prosecuted by Assistant United States Attorneys Tyler H.L. Tornabene and Dan Fruchter, and also by former Special Assistant United States Attorney Allie Jensen.
1:21-CV-03126-TOR
United States Files Forfeiture Action to Recover Cryptocurrency Traceable to Fraud SchemeRead the Press Release
BOSTON – The United States Attorney’s Office filed a civil forfeiture action to recover cryptocurrency alleged to be proceeds of an investment fraud scheme targeting a Massachusetts resident. The government seeks to forfeit 87,637 Tether (USDT) seized from an account located at Binance, a cryptocurrency exchange and custodian.
In November 2022, an investigation began into a cryptocurrency investment fraud scheme targeting a Massachusetts resident. As alleged in court documents, the individual was tricked, through fraudulent text and WhatsApp messages, into transferring a total of $975,900 from his bank account first into two cryptocurrency exchanges and then from there into a fraudulent cryptocurrency exchange.
From that transfer, the funds, in the form of cryptocurrency, were allegedly transferred through a series of intermediary cryptocurrency addresses. Ultimately, investigators were able to trace some of the funds to an account located at Binance, the contents of which were seized in May 2023.
It is a violation of federal law to use wire communications as part of a scheme to defraud or to obtain money or property by means of false or fraudulent pretenses. The complaint alleges that the seized currency was proceeds of the wire fraud. A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims.
This is the fourth civil forfeiture action the U.S. Attorney’s Office has filed seeking to forfeit cryptocurrency traced to fraud schemes targeting Massachusetts victims.
Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams and business email compromise (BEC) fraud scams – should contact [email protected].
Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement today. The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Matthew M. Lyons of the Asset Recovery Unit.
The details contained in the civil forfeiture complaint are allegations. The United States Attorney’s Office has not filed a corresponding criminal action on the matter.
U.S. Attorney’s Office Charges Ten Defendants in Drug Trafficking ProbeRead the Press Release
CHICAGO — A federal drug trafficking investigation has resulted in charges against ten individuals for allegedly trafficking fentanyl-laced heroin and other drugs on the South Side of Chicago.
The multi-year investigation, led by the DEA Chicago Field Division and the Chicago High Intensity Drug Trafficking Area program, utilized undercover and controlled narcotics purchases, covert surveillance operations, and wiretapped communications to shut down a drug trafficking operation. Criminal complaints filed in federal court in Chicago allege that the defendants were affiliated with the Gangsters Disciples, a Chicago street gang. The traffickers allegedly used a designated cellular telephone to receive and service narcotics orders, with various defendants taking shifts working the phone to distribute narcotics.
Most of the defendants were arrested Tuesday and have begun making initial appearances in U.S. District Court in Chicago. Law enforcement on Tuesday also executed court-authorized searches of multiple locations in Chicago.
The charges and arrests were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the DEA, Nicholas J. Roti, Executive Director of Chicago HIDTA, and Fred Waller, Interim Superintendent of the Chicago Police Department. Valuable assistance was provided by the U.S. Marshals Service. The government is represented by Assistant U.S. Attorneys Alejandro G. Ortega and Edward Liva.
The case is part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles drug trafficking organizations and other criminal networks that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local enforcement agencies.
Three complaints charge ten individuals with federal narcotics violations:
U.S. v. Ware, et al, 23 CR 409
Charged in this federal drug conspiracy are KEVIN WARE, 49, of Chicago, CHRISTOPHER WARE, 45, of Chicago, BRANDAN ALLEN, 31, of Chicago, RICKY WILLIAMS, 37, of Chicago, DARREL BROOKS, 51, of Chicago, LEROY PRESLEY, 49, of Riverdale, Ill., and ERNEST ROWLETTE, 49, of Chicago.
The charges allege that Kevin Ware led a trafficking organization and oversaw its operation, including managing the potency and supply of the narcotics it sold. He allegedly held discussions with dealers regarding best practices for interacting with customers and what types of deals to offer them. Kevin Ware also allegedly obtained information from his dealers about their interactions with law enforcement. Soon after two law enforcement seizures of suspected narcotics last year, Williams and other dealers reported the incidents to Kevin Ware, the complaint states.
The conspirators allegedly utilized a residence in Chicago’s West Pullman neighborhood as a “stash house” to store narcotics and cash. In 2021 and 2022, undercover law enforcement officers and cooperating sources made approximately 44 controlled purchases of narcotics from members of Kevin Ware’s organization, the charges allege.
U.S. v. Pearson, et al, 23 CR 422
Kevin Ware is also charged in a second federal drug case, along with MICHAEL PEARSON, 49, and JAMIE PEARSON, 46, both of Chicago.
According to the charges, the defendants distributed fentanyl and fentanyl-laced heroin. Michael Pearson allegedly conducted several drug deals in Chicago’s Pullman and West Roseland neighborhoods. One of the alleged deals occurred in May 2021 in a delicatessen in the 10700 block of South Michigan Avenue, where Michael Pearson arranged for the sale of heroin mixed with fentanyl and methamphetamine, the complaint states. Unbeknownst to Michael Pearson, the buyer was cooperating with law enforcement, the complaint states.
U.S. v. Allen, 23 CR 408
Charged with distributing fentanyl and fentanyl-laced heroin is REGINALD ALLEN, 22, of Chicago. Reginald Allen allegedly sold the drugs on the South Side of Chicago on several occasions in 2021 and 2022.
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The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Allen complaint Pearson et al complaint Ware et al complaintTroy Woman Pleads Guilty to Nationwide Marijuana Trafficking and Money Laundering ConspiraciesRead the Press Release
ALBANY, NEW YORK – Jazell Shuler, age 35, of Troy, New York, pled guilty today to conspiring to distribute marijuana and launder money.
United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Chief Daniel DeWolf of the Troy Police Department; and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
In pleading guilty, Shuler admitted to being a member of a marijuana and tetrahydrocannabinols (THC) trafficking organization that cultivated marijuana on a commercial scale in Fresno, California, and shipped thousands of kilograms of marijuana and THC from Fresno to locations throughout the United States, including the Capital Region. Shuler also admitted to laundering marijuana and THC proceeds for the organization.
The packages of marijuana were shipped through UPS and FedEx from a shipping store in Fresno, Fast Pack & Ship, by Dwight A. Singletary II, aka “Nutt” and “Mike Jones,” and McKenzie Merrialice Coles, aka “Kenzie.” At the direction of David Singletary, aka “DB,” Shuler received packages of marijuana at her and David Singletary’s respective residences in Troy and notified David Singletary when the packages arrived. Shuler also packaged marijuana for sale.
The marijuana was sold out of “knock spots” in the Capital Region, which advertised various strains and quantities of marijuana and THC “edibles” for sale, with prices, on white boards. The defendant worked at the “knock spots” and updated the information on the white board for David Singletary. In addition to working at the “knock spots,” Shuler sold marijuana.
The defendant also laundered marijuana and THC proceeds for the organization by sending $13,500 in money transfers purchased with cash drug proceeds from Troy to six people in Fresno, Windsor, and Merced, California, including Nehemiah Fane, aka “Neil,” and James Tyrell Daniels, aka “Red” and “Ghost.” David Singletary provided Shuler with the cash drug proceeds for the money transfers.
Shuler faces up to 20 years in prison on each of the two counts to which she pled guilty, conspiring to distribute marijuana and conspiring to commit money laundering; fines of up to $1 million and $500,000, respectively, on each count; and a term of supervised release of between 3 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Shuler was charged in an indictment with Dwight and David Singletary, McKenzie Coles, Fane, Daniels and 18 other people charging marijuana distribution and money laundering conspiracies, firearms offenses, and other crimes. Dwight Singletary, David Singletary, McKenzie Coles, Fane, and Daniels have pled not guilty, and are presumed innocent unless and until proven guilty. The charges in the indictment are merely accusations.
In addition to Shuler, five other defendants, Rosemary Coles, Latrice Mumphrey, Sammy Olague, Victor Turner, and Kristle Walker, previously pled guilty and are pending sentencing.
The ATF, DEA, Troy Police Department, and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Tornado Cash Founders Charged with Money Laundering and Sanctions ViolationsRead the Press Release
A Russian national and a Washington man were charged today with conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money transmitting business.
According to the indictment, unsealed today in the Southern District of New York, Roman Storm, 34, of Auburn, Washington, and Roman Semenov, 49, of Russia, created, operated, and promoted Tornado Cash, a cryptocurrency mixer that facilitated more than $1 billion in money laundering transactions, and laundered hundreds of millions of dollars for the Lazarus Group, the sanctioned North Korean cybercrime organization. Storm was arrested today in the state of Washington and will be presented later today in the Western District of Washington.
“As alleged in the indictment, the defendants operated a $1 billion scheme designed to help other criminals launder and conceal funds using cryptocurrency, including by laundering hundreds of millions of dollars on behalf of a state-sponsored North Korean cybercrime group sanctioned by the U.S. government,” said Attorney General Merrick B. Garland. “These charges should serve as yet another warning to those who think they can turn to cryptocurrency to conceal their crimes and hide their identities, including cryptocurrency mixers: it does not matter how sophisticated your scheme is or how many attempts you have made to anonymize yourself, the Justice Department will find you and hold you accountable for your crimes.”
“Today’s announcement should remind criminal organizations everywhere in the world that they are neither untraceable nor anonymous,” said FBI Director Christopher Wray. “You can’t hide from us behind a keyboard — whether you’re a hacker or facilitator. Those charged today engaged in a conspiracy to launder money for cybercriminals, including for a North Korean cybercrime organization seeking to evade sanctions. As we have with this operation, the FBI is going to keep dismantling the infrastructure used by cyber criminals to commit and profit from their crimes, and holding anyone who assists those criminals accountable.”
“Cryptocurrency mixers have become the go-to method for criminals to conceal their ill-gotten gains. As alleged, the defendants operated Tornado Cash as a safe haven for criminal actors to obfuscate the trail of funds tied to their criminal activities, such as computer hacking and wire fraud,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Criminal Division will continue to prioritize the investigation and prosecution of those who seek to criminally exploit the cryptocurrency ecosystem.”
“As stated in the indictment, the defendants’ cryptocurrency service facilitated more than $1 billion in illicit transactions and they knowingly allowed a globally sanctioned cybercrime group to launder hundreds of millions of dollars on behalf of the North Korean regime,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department – alongside our domestic and international law enforcement partners – will use every tool in our arsenal to pursue and dismantle the criminal networks that enable U.S. sanctions violations wherever they operate.”
“As alleged, Tornado Cash was an infamous cryptocurrency mixer that laundered more than one billion dollars in criminal proceeds and violated U.S. sanctions,” said U.S. Attorney Damian Williams for the Southern District of New York. “Roman Storm and Roman Semenov allegedly operated Tornado Cash and knowingly facilitated this money laundering. While publicly claiming to offer a technically sophisticated privacy service, Storm and Semenov in fact knew that they were helping hackers and fraudsters conceal the fruits of their crimes. Today’s indictment is a reminder that money laundering through cryptocurrency transactions violates the law, and those who engage in such laundering will face prosecution.”
Storm and Semenov were two of the three founders of the Tornado Cash service, a cryptocurrency mixer that allowed its customers to engage in untraceable transfers of cryptocurrency. The defendants and their co-conspirators allegedly created the core features of the Tornado Cash service, paid for critical infrastructure to operate the Tornado Cash service, promoted the Tornado Cash service, and made millions of dollars in profits from operating the Tornado Cash service. The Tornado Cash service advertised to customers that it provided untraceable and anonymous financial transactions, and Storm and Semenov chose not to implement know-your customer or anti-money laundering programs as required by law. As a result, the Tornado Cash service was used to launder more than $1 billion in criminal proceeds. Storm and Semenov allegedly knew about these money laundering transactions and received complaints and requests for help from victims of hacking and other cybercrimes. However, they refused to implement any controls and continued to operate the Tornado Cash service and facilitate these money laundering transactions.
In April and May 2022, the Tornado Cash service was allegedly used by the Lazarus Group, a sanctioned North Korean cybercrime organization, to launder hundreds of millions of dollars in hacking proceeds. Storm and Semenov allegedly knew that the Tornado Cash service they were operating was engaging in these sanctions-violating transactions. They implemented a change in the service so they could make a public announcement that they were compliant with sanctions, but in their private chats they agreed that this change would be ineffective. They then continued to operate the Tornado Cash service and facilitate hundreds of millions of dollars in further sanctions-violating transactions, helping the Lazarus Group to transfer criminal proceeds from a cryptocurrency wallet that had been designated by the Office of Foreign Assets Control (OFAC) as blocked property.
Storm and Semenov are each charged with one count of conspiracy to commit money laundering and one count of conspiracy to violate the International Economic Emergency Powers Act, each of which carries a maximum penalty of 20 years in prison. They are also each charged with conspiracy to operate an unlicensed money transmitting business, which carries a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and the IRS-Criminal Investigation are investigating the case. The Justice Department’s Office of International Affairs provided valuable assistance.
Assistant U.S. Attorneys Thane Rehn and Benjamin Gianforti for the Southern District of New York, and Trial Attorneys Jacques Singer-Emery and Garrett Coyle of the Justice Department's National Security Division are prosecuting the case in partnership with the Criminal Division’s National Cryptocurrency Enforcement Team (NCET).
The NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within the Criminal Division’s Computer Crime and Intellectual Property Section, the NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the Department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tornado Cash Founders Charged with Money Laundering and Sanctions ViolationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”), Nicole M. Argentieri, the Acting Assistant Attorney General of the Justice Department’s Criminal Division, Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, James Smith, the Assistant Director in Charge of the New York Field Office of the FBI, and Bryant Jackson, the Special Agent in Charge of the Cincinnati Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an Indictment charging ROMAN STORM and ROMAN SEMENOV with conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money transmitting business. The charges in the Indictment arise from the defendants’ alleged creation, operation, and promotion of Tornado Cash, a cryptocurrency mixer that facilitated more than $1 billion in money laundering transactions and laundered hundreds of millions of dollars for the Lazarus Group, the sanctioned North Korean cybercrime organization. ROMAN STORM was arrested today in the state of Washington and will be presented today in the U.S. District Court for the Western District of Washington. The case has been assigned to U.S. District Judge Katherine Polk Failla. SEMENOV remains at large.
U.S. Attorney Damian Williams said: “As alleged, Tornado Cash was an infamous cryptocurrency mixer that laundered more than $1 billion in criminal proceeds and violated U.S. sanctions. Roman Storm and Roman Semenov allegedly operated Tornado Cash and knowingly facilitated this money laundering. While publicly claiming to offer a technically sophisticated privacy service, Storm and Semenov in fact knew that they were helping hackers and fraudsters conceal the fruits of their crimes. Today’s indictment is a reminder that money laundering through cryptocurrency transactions violates the law, and those who engage in such laundering will face prosecution.”
Attorney General Merrick B. Garland said: “As alleged in the indictment, the defendants operated a $1 billion scheme designed to help other criminals launder and conceal funds using cryptocurrency, including by laundering hundreds of millions of dollars on behalf of a state-sponsored North Korean cybercrime group sanctioned by the U.S. government. These charges should serve as yet another warning to those who think they can turn to cryptocurrency to conceal their crimes and hide their identities, including cryptocurrency mixers: it does not matter how sophisticated your scheme is or how many attempts you have made to anonymize yourself, the Justice Department will find you and hold you accountable for your crimes.”
FBI Director Christopher A. Wray said: “Today’s announcement should remind criminal organizations everywhere in the world that they are neither untraceable nor anonymous. You can’t hide from us behind a keyboard — whether you’re a hacker or facilitator. Those charged today engaged in a conspiracy to launder money for cybercriminals, including for a North Korean cybercrime organization seeking to evade sanctions. As we have with this operation, the FBI is going to keep dismantling the infrastructure used by cyber criminals to commit and profit from their crimes, and holding anyone who assists those criminals accountable.”
Acting Assistant Attorney General Nicole M. Argentieri said: “Cryptocurrency mixers have become the go-to method for criminals to conceal their ill-gotten gains. As alleged, the defendants operated Tornado Cash as a safe haven for criminal actors to obfuscate the trail of funds tied to their criminal activities, such as computer hacking and wire fraud. The Criminal Division will continue to prioritize the investigation and prosecution of those who seek to criminally exploit the cryptocurrency ecosystem.”
Assistant Attorney General Matthew G. Olsen said: “As stated in the indictment, the defendants’ cryptocurrency service facilitated more than $1 billion in illicit transactions, and they knowingly allowed a globally sanctioned cybercrime group to launder hundreds of millions of dollars on behalf of the North Korean regime. The Justice Department – alongside our domestic and international law enforcement partners – will use every tool in our arsenal to pursue and dismantle the criminal networks that enable US sanctions violations wherever they operate.”
FBI Assistant Director in Charge James Smith said: “Today’s indictment of Tornado Cash co-founders Roman Storm and Roman Semenov highlights their alleged role in creating a cryptocurrency mixer that ultimately served as a gateway for the laundering of more than $1 billion in criminal proceeds. As alleged, when it became clear that a sanctioned North Korean cybercrime organization was using the platform to launder hundreds of millions of dollars derived from cyber heists, Storm and Semenov turned a blind eye to the illicit activity and made public representations that they were compliant with sanctions laws. Today’s enforcement actions remind the public that the FBI, when faced with illegal activity, is committed to tracing the untraceable, and will remain focused on protecting victims of financial crime wherever those crimes are committed — be it through the traditional banking system or the virtual currency blockchain.”
IRS-CI Special Agent in Charge Bryant Jackson said: “As alleged, Tornado Cash was used to launder over $1 billion. IRS Criminal Investigation’s Special Agents use their financial expertise to follow the flow of cryptocurrency transactions and dismantle major money laundering organizations that try to conceal the criminal source of their funds. Today's indictment is a direct result of our collaboration with our law enforcement partners, both in the U.S. and abroad. Through our work together, those who use deceit and fraud to line their pockets with illegal profits will be held accountable.”
As alleged in the Indictment unsealed in Manhattan federal court and court filings:[1]
ROMAN STORM and ROMAN SEMENOV were two of the three founders of the Tornado Cash service, a cryptocurrency mixer that allowed its customers to engage in untraceable transfers of cryptocurrency. The defendants and their co-conspirators created the core features of the Tornado Cash service, paid for critical infrastructure to operate the Tornado Cash service, promoted the Tornado Cash service, and made millions of dollars in profits from operating the Tornado Cash service. The Tornado Cash service advertised to customers that it provided untraceable and anonymous financial transactions, and STORM and SEMENOV chose not to implement know your customer or anti-money laundering programs as required by law. As a result, the Tornado Cash service was used to launder more than $1 billion in criminal proceeds. STORM and SEMENOV knew about these money laundering transactions and received complaints and requests for help from victims of hacking and other cybercrimes. However, they refused to implement any controls and continued to operate the Tornado Cash service and facilitate these money laundering transactions.
In April and May 2022, the Tornado Cash service was allegedly used by the Lazarus Group, a sanctioned North Korean cybercrime organization, to launder hundreds of millions of dollars in hacking proceeds. STORM and SEMENOV knew that the Tornado Cash service they were operating was engaging in these sanctions-violating transactions. They implemented a change in the service so that they could make a public announcement that they were compliant with sanctions, but in their private chats, they agreed that this change would be ineffective. They then continued to operate the Tornado Cash service and facilitate hundreds of millions of dollars in further sanctions-violating transactions, helping the Lazarus Group to transfer criminal proceeds from a cryptocurrency wallet that had been designated by the Office of Foreign Assets Control as blocked property.
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ROMAN STORM, 34, of Auburn, Washington, and ROMAN SEMENOV, 35, a Russian national, are each charged with one count of conspiracy to commit money laundering and one count of conspiracy to violate the International Economic Emergency Powers Act, which each carry a maximum sentence of 20 years in prison. They are also each charged with conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the investigative work of the FBI and IRS-CI. He also acknowledged the assistance of the Justice Department’s Office of International Affairs. Mr. Williams further thanked the Joint Chiefs of Global Tax Enforcement (“J5”) for their assistance in the investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit and the Criminal Division’s National Cryptocurrency Enforcement Team (“NCET”). Assistant U.S. Attorneys Thane Rehn and Benjamin Gianforti are in charge of the prosecution.
The NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within the Criminal Division’s Computer Crime and Intellectual Property Section, the NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the Department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
The allegations in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Storm and Semenov IndictmentThree Men Sentenced to Federal Prison After Armed Robbery of a Columbia Postal CarrierRead the Press Release
COLUMBIA, SOUTH CAROLINA —Don Everett Peters, III, a/k/a “Pop,” 21, and Shylik Lamont Smalls, a/k/a “Mitch,” 22, both of Columbia, and Elijah Rasue Dewayne Ellis, a/k/a “Smoke,” a/k/a “Black,” 21, of Valdosta, Georgia, have each been sentenced to federal prison for their roles in the March 17, 2022, armed robbery of a United States Postal Letter Carrier in downtown Columbia.
Peters, Smalls, and Ellis each pleaded guilty to conspiracy to commit armed robbery of a United States Postal Letter Carrier, assault/armed robbery of a United States Postal Letter Carrier, and theft/possession of a United States Postal arrow key. Peters and Smalls also pleaded guilty to theft/possession of United States mail.
Evidence presented in court showed that on the afternoon of March 17, 2022, after surveilling another postal carrier in the Hollywood-Rose Hill/Rosewood area of Columbia, the trio decided to rob a letter carrier making his rounds on Hollywood Drive. While Peters waited in the getaway car, Smalls and Ellis—while wearing masks—approached the carrier. Ellis pointed a gun at the carrier and demanded his keys. Peters then picked up the two co-conspirators and they fled the area.
After an extensive investigation, including review of numerous surveillance cameras and interviewing witnesses, law enforcement authorities linked the getaway vehicle to Peters. After a review of Peters’ prior encounters with law enforcement and cell phone records, postal inspectors were able to link Smalls to Peters. They determined that Smalls matched the description of one of the robbers, that both Smalls and Peters had access to firearms, and that Smalls was in possession of clothing matching the description of the clothing worn by one of the robbers.
Search warrants were obtained for Peters’ and Smalls’ apartments and vehicles and executed on May 4, 2022. Smalls was found with the stolen arrow key in his pants pocket. Investigators also recovered stolen mail, check making materials, several electronic devices such as cell phones and laptops, and two privately made firearms, which are commonly known as “ghost guns.” One ghost gun was found in Peters’ bedroom and the other in Smalls’ bedroom. Inside Peters’ car, Inspectors found documentation belonging to Ellis.
After waiving their rights, both Peters and Smalls admitted to being involved in the robbery, along with Ellis. Peters and Smalls were placed under arrest and a warrant was issued for Ellis. On May 31, 2022, Ellis was arrested in Valdosta, Georgia, where he was found in possession of a “ghost gun” and a quantity of marijuana. After advice of rights, Ellis admitted to being involved in the robbery with Peters and Smalls. All three have been in custody since their 2022 arrests.
“Make no mistake, we will bring all of our federal resources to bear when our postal carriers are robbed,” said U.S. Attorney Adair F. Boroughs, “Postal carriers are an integral part of our communities, and we are thankful for the residents who provided critical information as a part of this investigation and those who stood by the carrier at the sentencing hearing.”
“The sentences imposed in this case exemplify the unending dedication of the U.S. Postal Inspection Service to protect the employees of the United States Postal Service. When our employees are victims of robberies and assaults, we do not stop until we identify those responsible,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division of the United States Postal Inspection Service. “We extend our appreciation to the U.S. Attorney’s Office and our law enforcement partners for their support in this case.”
United States District Judge Mary Lewis Geiger sentenced Peters to 7 years in prison. Smalls and Ellis were each sentenced to 6 years in prison. Following their prison terms, each will be on supervised release for 3 years. 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 United States Postal Inspection Service and the Columbia Police Department. Additionally, the United States Marshals Fugitive Task Force and the Lowndes County, Georgia, Sheriff’s Office assisted in the arrest of Ellis. Assistant U.S. Attorneys Stacey D. Haynes and Lamar Fyall prosecuted the case.
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Three Charged in Fentanyl Overdose in St. Francois County JailRead the Press Release
ST. LOUIS – Three people have been indicted in U.S. District Court in St. Louis on drug charges and have been accused of helping smuggle the drugs that killed a St. Francois County jail detainee in 2021.
Timothy L. Noll, 34, Garry “Will” Triplett, 36, and Alissa R. Hahn, 28, were indicted August 9 on a charge of conspiracy to distribute a controlled substance. Triplett and Hahn are also facing a charge of distribution of a controlled substance and Noll is facing a charge of distributing a controlled substance resulting in death.
The indictment accuses Triplett of providing controlled substances to Hahn on July 31, 2021. Hahn and others distributed drugs to Noll the next day and on August 2, 2021, Noll provided drugs to the detainee who died as a result, according to the indictment.
A detention motion says Noll was captured on a jail video call coordinating with a drug supplier and instructing a family friend how to conceal narcotics in the spine of a bible. Noll’s cellmate later died of a fentanyl overdose within feet of the bible, according to the detention motion and statements made in court. A motion regarding Triplett says he was caught on video on July 31, 2021 supplying capsules and a bag of a crystal substance that were later hidden in the bible.
Triplett made his first appearance in court Wednesday, where he pleaded not guilty to the charges. Hahn pleaded not guilty August 17 and Noll pleaded not guilty the next day. Triplett and Noll waived detention hearings and will be held in jail until trial.
“We are working with the Missouri State Highway Patrol, who investigate overdose deaths of detainees in correctional institutions, and we will prosecute these cases,” said U.S. Attorney Sayler A. Fleming. “If convicted in federal court, those who supply drugs that kill could spend the rest of their lives in prison.”
The charges against Noll and Triplett carry a potential penalty of a mandatory life sentence in prison. Hahn’s charges are punishable by up to 20 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 Missouri State Highway Patrol. Assistant U.S. Attorney Zachary Bluestone is prosecuting the case.
Taos Woman Sentenced to 5 Years Supervised Probation and Community Service for Assault Resulting a Serious Bodily InjuryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Kylie Lujan was sentenced to 5 years supervised probation and a period of community service. Lujan, 26, of Taos, New Mexico, and an enrolled member of the Taos Pueblo, pled guilty to assault resulting in bodily injury on March 30, 2023.
According to court documents, on March 25, 2022, Lujan’s sister, Jane Doe, asked her to spend the night at her house and watch their grandmother, who is wheelchair bound and on dialysis, the next day. When Lujan’s sister picked her up, she suspected that Lujan was intoxicated. Lujan later admitted that she drank a pint of Jack Daniels before Jane Doe picked her up.
Later that night, Lujan’s sister expressed her disappointment in Lujan’s failure to “step up” and assist the family with their grandmother’s care. Without hesitation, Lujan wrapped her hands around her sister’s neck, then choke slammed her to the ground before punching her “five to six” times in the face with a closed fist. When their grandmother attempted to intervene, Lujan pushed her away and fled the scene. The assault resulted in multiple fractures that required Jane Doe be emergency airlifted to UNMH for facial reconstructive surgery.
Federal prosecutors made the recommendation for supervised release instead of jail time based on Lujan’s complete compliance with the terms of her pretrial release, lack of criminal history, and with the support of her family, including Jane Doe.
The Taos Pueblo Department of Public Safety investigated this case. Assistant United States Attorney Matthew McGinley is prosecuting the case.
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Sunnyside Man Sentenced to Ten Years Imprisonment for Selling Drugs Within the Boundaries of the Yakama NationRead the Press Release
Yakima, Washington – On August 22, 2023, United States District Judge Mary K. Dimke sentenced Jesse Robledo, 36, of Sunnyside, Washington, to 10 years in federal prison after his guilty plea to Distribution of Fifty Grams or More of Actual Methamphetamine. Robledo will also begin five years of court supervision after he is released from custody.
According to information disclosed during court proceedings – between May 7, 2021, and July 14, 2021 – on three separate occasions, Robledo, who is not a Native American, entered the Yakama Nation and sold methamphetamine to a confidential informant within the boundaries of the Yakama Nation. At the time of this offense, Robledo already had a lengthy criminal history. He previously had been convicted of bail jumping, residential burglary, first degree identity theft, first degree theft, forgery, second degree unlawful possession of a firearm, and felon in possession of a firearm and ammunition.
United States Attorney Vanessa R. Waldref, the chief federal law enforcement officer for the Eastern District of Washington, commended the efforts of the FBI Task Force in targeting individuals selling drugs within the boundaries of the Yakama Nation. “The United States Attorney’s Office will aggressively prosecute individuals who are selling drugs within the boundaries of the Yakama Nation. When dangerous narcotics enter our communities, we see an increase in violent crime. Holding individuals accountable who are dealing drugs and removing these narcotics from our streets will make all of our neighborhoods and communities safer and stronger.”
United States Attorney Waldref previously had announced in May 2022 that the FBI increased resources to further address violent crime in Yakima County, within the boundaries of the Yakama Nation. The purpose of this FBI Task Force is to disrupt gang activity, weapons trafficking, narcotics distribution, and to eradicate violent crime in Eastern Washington.
Following the sentencing, Yakima County Sheriff Robert Udell stated, “The FBI Task Force once again proved its effectiveness in combating illegal drugs and violent crime in Yakima County. In this case, FBI special agents and local law enforcement removed a career criminal from the Yakama Nation, making a huge impact on the safety of everyone living within the Yakama Nation.”
“Mr. Robledo knew he was distributing these potentially deadly drugs on the Yakama Indian Reservation” said Richard A. Collodi, Special Agent in charge of the FBI’s Seattle field office. “The work of our investigators and partners has resulted in a 10-year prison sentence and is another step in our effort at making the reservation a safer place.”
The case was investigated by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Tom Hanlon.
1:22-CR-02052-MKD-1
South Carolina Man and Woman Plead Guilty to Hate Crime and Conspiracy for Bias-Motivated Armed Robberies Targeting Hispanic VictimsRead the Press Release
A South Carolina man and woman pleaded guilty in U.S. District Court in Columbia, South Carolina, to a federal hate crime, conspiracy and other charges.
According to court documents, beginning in January 2021 and continuing through February 2021, Gabriel Brunson, 20, and Sierra Fletcher, 33, both of Columbia, conspired to target people the defendants identified as Mexican or Hispanic at places of public accommodation, including gas stations and grocery stores. After identifying these targets, the defendants would rob their victims at gunpoint. The defendants targeted their victims because of their victims’ race and national origin.
Both defendants admitted their involvement in a Jan. 22, 2021, armed robbery in which the defendants followed their victims from a grocery store and restaurant to their home, and then robbed the victims at gunpoint, stealing cash and a cellphone. Fletcher admitted to being involved in several other robberies on Jan. 30, 2021, including a carjacking and a home invasion robbery of other Hispanic victims. The defendants admitted to using guns during their crimes.
The information to which Brunson and Fletcher pleaded guilty charges each of them with one hate crime for the Jan. 22, 2021, robbery of Hispanic victims. The information further charges Brunson and Fletcher with conspiracy, Hobbs Act robbery and carrying firearms in connection with those crimes.
“These defendants targeted Hispanic victims for violent acts of armed robbery because of their race, national origin and perceived vulnerability,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “No person should have to fear for their lives or property because of their race or national origin. The Justice Department will continue to vigorously prosecute those who commit bias-motivated crimes.”
“Prosecuting civil rights crimes is a priority for our office,” said U.S. Attorney Adair Boroughs for the District of South Carolina. “Federal law recognizes that crimes targeting people of a particular race or national origin is particularly egregious, and we stand ready to enforce the national hate crimes law here in South Carolina.”
“These were not crimes of opportunity. The defendants systematically robbed at gunpoint people whom they identified as Mexican or Hispanic,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Hate motived violence has no place in our country. The FBI will continue to aggressively investigate these crimes and promote a culture of safety and inclusivity in all the communities we serve.”
The plea agreements require both defendants to pay restitution to all victims. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.
The FBI Columbia Field Office investigated the case, with assistance from the Richland County and Lexington County Sherriff’s Departments.
Assistant U.S. Attorneys Ben Garner and Brook Andrews for the District of South Carolina and Trial Attorney Andrew Manns of the Civil Rights Division’s Criminal Section are prosecuting the case.
Sex offender sentenced for illegally being in US…for the 9th timeRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old man illegally present in the United States has been sentenced for returning to the United States without permission, announced U.S. Attorney Alamdar S. Hamdani.
Elvis Cristian Hernandez-Ayala pleaded guilty June 1.
U.S. District Judge David S. Morales has now ordered Hernandez-Ayala to serve 37 months in federal prison. He was also on supervised release for a prior illegal re-entry conviction and also received 12 months for that violation, six months to be served consecutively. Not a U.S. citizen, he is expected to face removal proceedings following his total 43-month-term of imprisonment. At the hearing, the court heard additional evidence regarding Hernandez-Ayala’s frequent illegal re-entries and his troubling criminal history, including a prior conviction for sexual assault in which Hernandez-Ayala had raped another undocumented alien in a stash house.
On April 5, Hernandez-Ayala attempted to circumvent the Border Patrol (BP) Checkpoint near Falfurrias. Authorities found him and three others walking through the brush on a ranch.
The investigation revealed he had been previously removed from the United States eight times following his convictions such as felony possession of a controlled substance, driving while intoxicated and sexual assault.
Hernandez-Ayala will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation. Assistant U.S. Attorney Barbara J. De Pena prosecuted the case.
Second Providence Man Admits to Assaulting U.S. Postal CarrierRead the Press Release
PROVIDENCE , RI – A Providence man on Tuesday admitted to a federal judge that he assaulted a U.S. Postal Service letter carrier purportedly because of a near collision between the man’s car with a mail delivery truck as they passed on a tightly packed Providence street, announced United States Attorney Zachary A. Cunha.
Branley Ferreras-Severino, 22, admitted that he repeatedly punched the letter carrier when the worker returned to his truck after having delivered packages to a nearby house. Ferreras-Severino admitted that he was standing by the mail truck and said, “You think it’s funny? You almost hit me. You wanna get popped?” The carrier took that to mean being shot with a gun.
Ferreras- Severino admitted that a passenger in his car, Ismael Colon-Pena, 19, of Providence, joined him in assaulting the Postal employee. The mail carrier attempted to fend off the attack and then ran from the area while dialing 911 for help. He provided investigators with the license plate number of the car driven by Ferreras-Severino, which they learned was registered to Ferreras-Severino’s mother.
As part of the investigation, U.S. Postal Service Inspectors obtained security videos from a nearby residence that depicted the attack. The Postal carrier identified both defendants from photographs shown to him by investigators.
Ferreras-Severino pleaded guilty on Tuesday to a charge of assault of a federal employee. He is scheduled to be sentenced on November 22, 2023. Colon-Pena pleaded guilty to the same charge on February 14, 2023. At sentencing on May 18, 2023, he was entered into the Deferred Sentencing Program for a term of 12 months.
As a result of their convictions, both men, Dominican Republic nationals, face deportation proceedings.
The case is being prosecuted by Assistant United States Attorney Zechariah Chafee.
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Savannah man convicted at trial for armed bank robberyRead the Press Release
SAVANNAH, GA: A Chatham County man has been convicted after trial for the robbery of a Savannah bank.
Omar Lockhart, 35, of Savannah, was found guilty after a two-day trial in U.S. District Court of Bank Robbery, a charge that subjects Lockhart to a statutory penalty of up to 20 years in prison, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia.
In addition, the jury found Lockhart guilty of Using, Carrying, or Possessing a Firearm in Relation to a Crime of Violence, which subjects him to an additional seven years in prison consecutive to the sentence for bank robbery. The jury also found Lockhart guilty of Possession of a Firearm by a Convicted Felon.
There is no parole in the federal system.
“Omar Lockhart terrorized the employees of a business by brandishing a gun during a robbery,” said U.S. Attorney Steinberg. “We commend our law enforcement partners for their outstanding work in safely bringing him to justice.”
As described at trial, Lockhart entered the Synovus Bank on Paulsen Street in Savannah on March 7, 2022, produced a pistol, and pointed it at a teller. He declared he was robbing the bank and handed grocery bags to the teller, demanding the money in her drawer. He then took the money and left the bank, telling everyone to “have a nice day.”
Savannah Police officers and the FBI later located Lockhart at a Savannah hotel where he had paid cash to rent a room and arrested him after a brief standoff with the SWAT team.
Lockhart remains in custody of the U.S. Marshals Service, and U.S. District Court Judge William T. Moore Jr. will schedule sentencing following completion of a pre-sentence investigation by U.S. Probation Services.
“No one should ever be terrorized physically or emotionally, like the victims in this armed robbery, simply because they work at a business or patronize that business,” said FBI Savannah RA Supervisory Senior Resident Agent Will Clarke. “We are committed to keep our communities safe from violence and seek justice for the victims of these crimes.”
The case was investigated by the Chatham County Police Department, the Savannah Police Department, and the FBI, and prosecuted for the United States by Assistant U.S. Attorneys Bradley R. Thompson and John P. Harper III.
Rhode Island Attorney Pleads Guilty to Federal Wire Fraud, Tax Evasion ChargesRead the Press Release
PROVIDENCE, RI – Rhode Island personal injury attorney Peter P.D. Leach on Tuesday admitted to a federal judge that he conducted a Ponzi scheme to defraud clients by misappropriating over $500,000 in client settlement funds; he also admitted that he took evasive steps to conceal his ill-gotten gains from the IRS while failing to pay more than $250,000 in taxes, announced United States Attorney Zachary A. Cunha.
In pleading guilty to charges of wire fraud and tax evasion, Leach admitted that he forged client signatures and deposited client settlement checks into his attorney IOLTA account, using those funds to pay personal expenses and to repay earlier clients whose funds he had embezzled. To prolong his scheme, Leach repeatedly made false representations to clients about the status of their cases, and told them that he would pay their medical expenses and other bills with settlement funds he had received.
An investigation by the Rhode Island State Police Financial Crimes Unit and Internal Revenue Service - Criminal Investigation determined that Leach’s criminal activity resulted in losses to clients of more than $250,000.
Leach also admitted that from 2014-2019, he took multiple steps to conceal his gains from the IRS, including by making false statements on IRS forms regarding his assets; making false statements to IRS Revenue officers about his ability and willingness to pay his taxes and about his withdrawal of over $540,000 of cash from his IOLTA accounts for payment of personal expenses; and by transferring money from his client account to the account of family members to make personal payments.
The investigation determined that Leach failed to pay more than $250,000 in taxes.
Leach is scheduled to be sentenced on January 4, 2024. The defendant’s sentences will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney Sandra R. Hebert and Denise Barton.
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Repeat offender imprisoned for having sadomasochistic child pornography imagesRead the Press Release
GALVESTON – A 71-year-old Pearland resident has been sent back to prison for receipt and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Dan McClure pleaded guilty May 17.
U.S. District Judge Jeffrey Brown has now ordered McClure to serve 262 and 240 months for the receipt and possession convictions, respectively. They will run concurrently for a total 262-month-term of imprisonment. At the hearing, the court heard evidence that McClure has had a sexual interest in children since the late 1980s. This led him to not only sexually abuse at least three minor females, but collect child pornography over the last two decades. McClure was further ordered to serve the rest of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
The investigation began when authorities learned of an individual who had uploaded a child pornography image. They determined the owner of the IP address associated with it was a registered sex offender living in Pearland identified as McClure.
Law enforcement executed a search warrant at his residence and seized numerous devices, including one McClure had hidden in the ceiling. Forensic examination revealed two of the devices contained child pornography. They ultimately found a total of 831 images of child pornography, 736 of which contained prepubescent minors. Approximately 100 included sadomasochistic conduct.
McClure will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the Houston Metro Internet Crimes Against Children Task Force.
Assistant U.S. Attorneys Sherri L. Zack and Kimberly Ann Leo are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Recidivist Sex Offender Sentenced to 10 Years for Possession of Child PornographyRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Richard Crisman was sentenced to 10 years in federal prison. Crisman, 39, of Albuquerque, pled guilty to possession of child pornography on April 12, 2023. This was Crisman’s second conviction for possession of child pornography. He previously pled guilty to receipt of a visual depiction of minor engaged in sexually explicit conduct on Feb. 24, 2012, and was sentenced to 97 months in federal prison followed by 25 years of supervised release.
According to court documents, on April 7, 2021, during a routine field visit to Crisman’s residence in Rio Rancho, the US Probation Officer noticed an unauthorized USB device attached to his computer and confiscated the device. A search of the device and Crisman’s other devices revealed thousands of images and videos of children under the age of 18 engaging in sex acts. When questioned, Crisman admitted to downloading the Child Sexual Abuse Material.
Upon his release from prison, Crisman will be subject to lifetime supervised release.
The FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Anderson C. Hatfield is prosecuting the case.
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Readout from United States Attorney Alexander M.M. Uballez’s Violent Crime Listening Session with Social Justice AdvocatesRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and his staff met with social justice advocates on August 1 at the Main Public Library to discuss violent crime. Baruch Campos, Program Director for Together for Brothers, Starlyn Brown and Karen Douglas from the League of Women Voters of Central New Mexico, and Jack Champagne, Program and Legal Director from the New Mexico Black Leadership Council, presented statements. This was the fourth listening session held with community members this summer.
United States Attorney Uballez opened the session by explaining that the Attorney General directed United States Attorney’s Offices to focus on addressing violent crime through intervention and outreach efforts. Participants described how crime at bus stops and on buses reflects a larger issue with guns, drugs and violent crime in Albuquerque. Others described how the negative perception of the city and law enforcement in the community and the media, whether accurate or inaccurate, produces an amount of fear and divisiveness which is disproportionate to the actual circumstances in the city. Participants agreed that Albuquerque Community Services (ACS) needed more support and resources so that they could expand their scope of work.
Speaking to the challenges facing local organizations who work with the unhoused population to address drugs and violence, Baruch Campos said “we’ve tried working with organizations like HopeWorks and organizations that specialize in [the unhoused population]. The issues there when we tried to do that, they’re just so overwhelmed. There’s a lot, there’s a huge population that is in need. When I think about that, it’s just like what is our city doing to support either those organizations doing that work or to support people directly?”
Jack Champagne agreed, saying “a lot of them are closing down too. I’ve noticed as we’ve kind of gotten on the tail end of COVID funding they just haven’t had any additional support and so they just couldn’t keep the doors open. So now we’re dealing with less of these organizations doing work and the remaining organizations are getting even more that they have to do.”
When asked what concerns participants have about safety and violence in the community, Starlyn Brown and Karen Douglas agreed that gun violence was a general concern, especially the increase in gun violence amongst youth. One participant shared that their family had been directly affected by gun violence and that the case remains unsolved, leaving the family without answers or closure.
When asked what issues the participants see that cause the divide between law enforcement and the community, Champagne observed “my perception of [APD] is that they’re kind of in a bit of a double bind in the sense that they are perceived as both over policing and under policing…. they’re responses are perceived as heavy-handed and occasionally they’re seen as not responding at all.” Champagne continued, “its very easy for a direct response to spiral out of control, especially if we are dealing with new police officers or police officers in a new community or police officers in a community that is not their own... we don’t have a ton police who know what it’s like to live in the [International] District for instance, so it’s very difficult for them to understand what an appropriate response is.”
“…we expected too much of APD.” Brown agreed. “It’s kind of like in the school system where the teachers are babysitters, they’re councilors, they have to, you know, deal with the parents.”
On August 18, 2023, USA Uballez, together with ACS and the Mayor’s Office, announced that the Department of Justice awarded a $2,050,000.00 grant to the Albuquerque Community Safety Department and its Violence Intervention Program. ACS and VIP will use the discretionary earmark funding to expand the scope of their programs. This will enhance service in violence prevention, intervention, and support within Albuquerque. In addition to the expansion of the existing work, this funding can help with exploring the establishment of an Office of Violence Prevention for the City of Albuquerque.
USA Uballez convened this listening session as part of the Department of Justice’s Project Safe Neighborhoods (PSN) Program. USA Uballez previously met with representatives from organizations that serve Albuquerque’s International District, community providers who serve the unhoused population, and addiction and treatment service providers. These sessions were an opportunity for the USA and his staff to recognize the vital role that these leaders, providers and advocates play in our community.
PSN is an evidence-based program proven 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. In New Mexico, the United States Attorney’s Office pursues a community violence intervention approach. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally-based intervention, prevention, and reentry programs for lasting reductions in crime.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The program’s emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
Providence Man Pleads Guilty to Federal Firearm and Drug Trafficking ChargesRead the Press Release
PROVIDENCE , RI – A Providence man admitted to a federal judge today that, in February 2021, while he was detained at the Adult Correctional Institutions (ACI) on unrelated charges, he arranged by telephone with his then girlfriend to locate and sell a firearm that he illegally possessed, and took steps to continue running his established drug trafficking business.
Ronald M. Kramer, 39, admitted that, while confined at the ACI, another inmate told him about an individual outside of the prison who might be interested in purchasing a firearm Kraemer was trying to get rid of. Kramer provided his girlfriend with that information, who then contacted and arranged to meet with the person to sell him the firearm. At that meeting, Kramer’s girlfriend also discussed and arranged to sell the gun buyer methamphetamine pills. Subsequently, she made at least two deliveries of pills to the buyer, totaling more than 244 grams. The person who took possession of the firearm and the drugs was, in fact, a Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) undercover agent.
On April 1, 2021, law enforcement agents executed a search warrant on the girlfriend’s apartment. During the search agents located a safe containing $10,790 in cash which were proceeds of the sale of methamphetamine.
Kramer pleaded guilty today charges of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine; possession with intent to distribute 50 grams or more of methamphetamine; and possession of a firearm by a prohibited person, announced United States Attorney Zachary A. Cunha.
The case is being prosecuted by Assistant United States Attorney Zechariah Chafee.
The matter was investigated by ATF, with the assistance of the Providence Police Department.
United States Attorney Cunha thanks the Rhode Island Department of Corrections, United States Postal Inspection Service, United States Marshals Service, Rhode Island State Police, and the Pawtucket, Providence, Cranston, and North Providence Police Departments for their assistance in the investigation of this case.
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