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11 October 2023
Nicaraguan Woman Pleads Guilty to Illegally Using Social Security NumberRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that JUNIETH BETANCO-HERNANDEZ, age 19, plead guilty on October 10, 2023 to illegally using a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to court documents, BETANCO-HERNANDEZ was first encountered, and subsequently arrested, by the U.S. Border Patrol (USBP) near Hidalgo, TX, on or about September 30, 2022. BETANCO HERNANDEZ was later interviewed and determined to be unlawfully present and inadmissible into the United States. She was released from custody by U.S. Border Patrol and instructed to report to Immigration and Customs Enforcement in New Orleans, LA. In conjunction with her release, BETANCO-HERNANDEZ was enrolled in the “Alternative to Detention” program and provided a GPS device to monitor her location in the United States.
On or about March 28, 2023, BETANCO-HERNANDEZ reported to the BI Incorporated office in St. Rose, LA as requested. During her interview by a case specialist, she was asked to present her immigration related documents. BETANCO-HERNANDEZ handed over a Louisiana state ID with her name and photo and a Social Security Card. Through further investigation, it was determined that BETANCO-HERNANDEZ was not the individual who was issued that social security number. Additionally, Homeland Security Investigations agents confirmed that the number BETANCO-HERNANDEZ presented was issued by the Commissioner of the Social Security Administration to another individual, and not BETANCO-HERNANDEZ.
BETANCO-HERNANDEZ faces a maximum term of imprisonment of not more than five years, a maximum fine of up to $250,000, a maximum term of supervised release of up to three years, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
New York Man Pleads Guilty to Trafficking Firearms and MethamphetamineRead the Press Release
BOSTON – A New York man pleaded guilty today in federal court in Boston to trafficking drugs and firearms.
Jason Lebberes, 31, of Tuckahoe, N.Y., pleaded guilty to one count of distributing more than 50 grams of methamphetamine; one count of transferring a firearm to an out-of-state resident; and one count of transferring a machinegun. U.S. District Court Judge Patti B. Saris scheduled sentencing for Jan. 17, 2024. Lebberes was arrested and charged in March 2023.
Lebberes sold more than 50 grams of methamphetamine, a privately manufactured firearm, commonly known as a “ghost gun” and a Glock switch. A Glock switch is a device that converts firearms into automatic weapons. The investigation revealed that Lebberes had sold numerous Glock switches to other customers in the past.
During a search of Lebberes’ residence, numerous handguns, assault rifles and ammunition were recovered, several of which were privately manufactured. A video of Lebberes discharging a handgun out of his car window was also recovered during the investigation.
The charge of possession with intent to distribute more than 50 grams of actual methamphetamine provides for a sentence of at least 10 years and up to life years in prison, at least five years of supervised release and a fine of up to $5,000,000. The charge of transferring a firearm to an out-of-state resident provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of transferring a machinegun provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office; Ketty-Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the New York State Police. Assistant U.S. Attorney Evan Panich of the Narcotics & Money Laundering Unit is prosecuting the case.
New York Auto Repair Shop Owner Pleads Guilty to Tax FraudRead the Press Release
A New York man pleaded guilty today to conspiring to defraud the United States relating to his efforts to conceal income from the IRS.
According to court documents and statements made in court, Aniello Strocchia, of Maspeth, owned and operated an auto repair shop. From 2013 to 2017, Strocchia, along with others, cashed more than $1.3 million in checks payable to his auto shop at check-cashing businesses instead of depositing those funds into the business’ bank account. Strocchia concealed the check-cashing activity from his tax return preparers which resulted in the filing of false tax returns that underreported the auto repair shop’s gross receipts and ordinary business income, as well his total personal income. Strocchia used the unreported income on personal expenditures, including luxury car purchases and approximately $500,000 in extensive home renovations.
If convicted, Strocchia faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Breon Peace for the Eastern District of New York made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Matthew Cofer and Ann M. Cherry of the Tax Division are prosecuting the case.
New Salem, PA Resident Sentenced for Violating Federal Narcotics LawsRead the Press Release
PITTSBURGH, PA - A resident of New Salem, PA, has been sentenced in federal court to a 24-month term of imprisonment to be followed by a 3-year term of supervised release on his conviction of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
United States District Judge William S. Stickman imposed the sentence on Jack Sparks, 49, of New Salem, PA.
According to information presented to the court, on or about July 6, 2022, Mr. Sparks possessed with intent to distribute a quantity of cocaine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
In imposing the sentence, Judge Stickman highlighted in part the dangers and harms associated with drug trafficking and the need to deter similar conduct in the future.
Assistant United States Attorney Benjamin C. Dobkin prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Federal Bureau of Investigations for the investigation leading to the successful prosecution of Sparks.
New Orleans Man Indicted for Trafficking Fentanyl and HeroinRead the Press Release
NEW ORLEANS, LOUISIANA – RODNEY OFFRAY, age 49, a resident of New Orleans, was charged on September 22, 2023 in a recently unsealed three-count indictment by a federal grand jury, announced U.S. Attorney Duane A. Evans.
The indictment alleges that OFFRAY distributed fentanyl and heroin on three occasions. Count 1 alleges that OFFRAY distributed quantities of heroin and fentanyl on July 24, 2023, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). For this offense, he faces up to twenty years imprisonment, a fine of up to $1,000,000, at least three years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
Counts 2 and 3 of the indictment allege that OFFRAY distributed 40 grams or more of fentanyl and a quantity of heroin on July 28, 2023 and July 31, 2023, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C). For these offenses, he faces a statutory mandatory minimum sentence of five years, up to forty years imprisonment, a fine of up to $5,000,000, at least four years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Morris County Woman Charged wth Disability Benefits Fraud and Making False StatementsRead the Press Release
NEWARK, N.J. – A Morris County woman charged with fraud and making false statements will make her initial court appearance today, U.S. Attorney Philip R. Sellinger announced.
Pamela VanSyckle, 60, of Oak Ridge, is charged by complaint with one count of federal employee compensation fraud and one count of making false statements. VanSyckle made her initial appearance this afternoon before U.S Magistrate Judge José R. Almonte in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case:
VanSyckle works for the U.S. Postal Service as a rural carrier. In September 2020, VanSyckle signed and filed a claim form alleging that she sustained an injury at work. As a result of that injury, VanSyckle claimed that she was unable to carry out her duties as a mail carrier. While she received disability benefits from September 2020 to September 2023, VanSyckle signed and filed multiple federal claim forms alleging that she had not worked or had outside employment. Based on the submission of those claims, VanSyckle received over $155,000 in disability benefits from the federal government.
During the time in which she received disability benefits, however, VanSyckle was in fact working as the owner and operator of a travel agency. While claiming that she was neither self-employed nor involved in any business enterprise, VanSyckle performed a variety of services for the travel agency including handling sales, marketing and financial operations.
The fraud and false statement charges each carry a maximum potential sentence of five years in prison and a maximum of $250,000 or twice the gross amount of any pecuniary gain that any persons derived from the offense, whichever is greater.
U.S. Attorney Sellinger credited special agents of the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modaferri; special agents of the U.S. Department of Labor – Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone; and members of the Jefferson Township Police Department, under the direction of Chief Paul Castimore, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
vansyckle.complaint.pdfMontana Man Pleads Guilty to Buying Firearms in Montana, Illegally Exporting Them to MexicoRead the Press Release
A Montana man pleaded guilty today to buying firearms in Montana and selling them to individuals in Mexico.
Cristyan Jose Gonzalez-Carrillo, 37, of Bozeman, pleaded guilty to illegal export before U.S. Magistrate Judge Kathleen L. DeSoto.
According to court documents, an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) determined that from February 2020 to May 2020, Gonzalez-Carrillo purchased approximately 31 handguns. Law enforcement executed a search warrant at Gonzalez-Carrillo’s residence in July 2020 and recovered firearms and ammunition, including semi-automatic handguns and AR style rifles. Receipts seized during the search were from multiple stores in Montana for the purchase of firearms during that period. In addition, the investigation determined that Gonzalez-Carrillo’s vehicle plate records would demonstrate multiple border crossings at San Ysidro, California, from April 2020 to June 2020. Investigators also learned that Gonzalez-Carrillo purchased and advertised firearms for sale on the platform WhatsApp and sold firearms to individuals in Mexico.
“Every day across America, the Department of Justice is fighting the twin epidemics of gun violence and drug poisoning that shatter our communities,” said Deputy Attorney General Lisa O. Monaco. “To win that battle, we must root out and prosecute those who traffic illegal firearms to Mexico – where weapons end up in the hands of violent cartels that send deadly drugs back to the United States. Today’s guilty plea represents another step forward, but also a sobering reminder that the fight against cross-border firearms-trafficking is a nationwide challenge.”
“Buying guns in Montana and taking them to Mexico to sell is illegal,” said U.S. Attorney Jesse Laslovich for the District of Montana. “Fighting gun violence remains a top priority for our office and as today’s hearing showed, we will investigate and prosecute anyone who violates federal firearms laws.”
“Preventing unlawful firearms trafficking is a top priority of the ATF,” said ATF Director Steven Dettelbach. “Whether the unlawful trafficking is destined for a gang in the United States or a cartel in Mexico, we will work with our partners to stop it and hold accountable those who violate our nation’s firearms laws.”
Gonzalez-Carrillo faces a maximum penalty of 10 years in prison, a $250,000 fine, and three years of supervised release. Sentencing is set for Feb. 15, 2024, before U.S. District Judge Dana L. Christensen. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Gonzalez-Carrillo was detained pending further proceedings.
ATF investigated the case.
Assistant U.S. Attorney Tara J. Elliott for the District of Montana is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Monroeville Resident Sentenced for Violating a Federal Firearms LawRead the Press Release
PITTSBURGH, PA - A resident of Monroeville, PA, has been sentenced in federal court to imprisonment for 8 months on his conviction of violating a federal firearms law, United States Attorney Eric G. Olshan announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Matthew Alfaro, 23, of Monroeville, PA.
According to information presented to the court, on or about December 29, 2020, Mr. Alfaro knowingly made a false statement in connection with the acquisition of two firearms from a licensed firearms dealer, intending to deceive the dealer. Mr. Alfaro purchased a Glock model 22, .40 caliber pistol and a Springfield Armory model Saint, 5.56 caliber pistol from a Pittsburgh-area licensed firearms dealer. Mr. Alfaro stated on ATF Form 4473 that he was purchasing the firearms for himself, when in truth, he was purchasing them at the direction of another person, intending to deliver them to that person.
In to imposing the sentence, Judge Ranjan highlighted in part the harm caused by firearms violence, the impact that straw purchases like those carried out by Mr. Alfaro have on the community, and the need to deter such conduct in the future.
Assistant United States Attorneys Brendan J. McKenna and Benjamin C. Dobkin prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Alfaro.
Middlesex County Man Convicted of Persuading, Inducing and Enticing Victims for ProstitutionRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was convicted today of four counts of persuading, inducing, and enticing women to travel in interstate commerce to engage in prostitution, U.S. Attorney Philip R. Sellinger announced.
Jose Torres, 45, was convicted of all four counts of a second superseding indictment following a six-day trial before U.S. District Judge Brian R. Martinotti in Newark federal court.
According to the documents filed in this case and the evidence at trial:
From May 2015 to October 2019, Torres persuaded, induced and enticed female victims, often commercial sex workers, to travel from out of state locations, including Canada and New York, to engage in prostitution with him. In each instance, Torres trolled prostitution websites and targeted out-of-state sex workers. He lured them to New Jersey with promises of large sums of payment. Once the women were in New Jersey, Torres refused to pay them. When the victims asked for payment, Torres became aggressive, often assaulting and raping them.
Each charge of coercion and enticement carries a maximum term of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 27, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Emma Spiro and Shawn Barnes of the U.S. Attorney’s Office’s Criminal Division in Newark.
Manchester Man Sentenced to 4 Years in Federal PrisonRead the Press Release
CONCORD – A Manchester man was sentenced in federal court for possessing with intent to distribute cocaine in New Hampshire, U.S. Attorney Jane E. Young announces.
Emilio Flores, 31, was sentenced by Senior U.S. District Court Judge Steven McAuliffe to 48 months in prison and 3 years of supervised release. On April 12, 2022, Flores pleaded guilty to possessing with intent to distribute controlled substances.
“The defendant trafficked significant quantities of cocaine in New Hampshire,” said United States Attorney Jane E. Young. “The lengthy sentence imposed by the Court reflects that dealing drugs will not be tolerated in the Granite State, and that defendants who assault other inmates will face longer sentences.”
"Today’s sentence is a reminder to those who harm our communities – your criminal activity will not be tolerated, and you will be held accountable,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division.
“Let this sentencing be a strong message, the Manchester Police Department does not tolerate this criminal behavior, and this agency along with our law enforcement partners will continue to work tirelessly to get these repeat offenders behind bars,” said Manchester Police Chief Allen Aldenberg, “I am very encouraged by this outcome, and I believe it is strong proof that collaboration works.”
On September 1, 2021, Flores was arrested on an outstanding violation of state parole. A search of his Manchester residence yielded approximately 2 kilograms of cocaine. After pleading guilty to the drug charge in this case and awaiting sentencing, while incarcerated at the Strafford County House of Correction, Flores assaulted another inmate. An addendum to the plea agreement increased the length of his imprisonment by 12 months to take this conduct into account.
The Federal Bureau of Investigation and the Manchester Police Department jointly led the investigation. Valuable assistance was provided by the State of New Hampshire Probation and Parole Office. Assistant U.S. Attorneys Aaron Gingrande and Charles Rombeau prosecuted the case.
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MS-13 Gang Members Indicted for Two Murders on Long IslandRead the Press Release
An 11-count indictment was unsealed on October 4, 2023 in federal court in Central Islip charging Carlos Humberto Aquino-Hernandez, also known as “Caprichoso” and “Flaco” (“Aquino-Hernandez”), who is a member of the Coronados Locos Salvatruchas subgroup or “clique” of the MS-13, the violent transnational criminal organization La Mara Salvatruchas, and Gerson Hernandez, also known as “Steven Jefferson,” “Jeffrey,” “Serio,” “Serioso” and “Necio,” who is a member of the Hempstead Locos Salvatruchas clique of the MS-13, with multiple racketeering offenses in connection with two murders, a narcotics trafficking conspiracy, as well as with related charges of murder, conspiracy to commit murder, firearms offenses, and narcotics trafficking offenses.
Hernandez was arraigned this afternoon before United States Magistrate Judge Lee G. Dunst at the federal courthouse in Central Islip and was ordered detained pending trial. On October 6, 2023, Aquino-Hernandez was ordered removed in custody from the District of Maryland and will be arraigned in the Eastern District of New York at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in Charge, Federal Bureau of Investigation, New York Field Office (“FBI”), and Patrick J. Ryder, Commissioner, Nassau County Police Department (“NCPD”) announced the indictment and charges.
“The defendants allegedly committed two murders in furtherance of the MS-13 enterprise with all the gang’s hallmarks of senseless, brutal violence that endangers the entire community as evinced by unleashing gunfire outside a McDonald’s in broad daylight near a mother walking with her child,” stated United States Attorney Peace. “The defendants fleeing to another state proved futile thanks to the outstanding efforts of law enforcement to hold them accountable now in a federal courtroom on Long Island.”
Mr. Peace expressed his appreciation to the members of the FBI’s Long Island Gang Task Force, the NCPD, and the Nassau County District Attorney’s Office; as well as to the members of the FBI’s Baltimore Division and Cross Border Task Force, the Prince George’s County Police Department, the Montgomery County Police Department, the Montgomery County Division of the Maryland National Capital Park Police, and the United States Attorney’s Office for the District of Maryland for their tremendous assistance and partnership in this case.
“The actions of Aquino-Hernandez and Hernandez remind us that gangs are responsible for a significant percentage of violent crime in many jurisdictions, putting innocent people at risk as they avenge their rivals. The violence caused by MS-13 has terrorized our communities for far too long, and the FBI is committed to dismantling this violent gang and putting an end their atrocities once and for all,” stated FBI Assistant Director-in-Charge Smith.
The July 19, 2022 Murder of Walter Ochoa
Walter Ochoa was targeted by MS-13 members who suspected him of being a member of a rival street gang. Ochoa’s murder was also committed in retaliation for the killing of an MS-13 member 11 days earlier which the MS-13 blamed on the 18th Street gang. On the evening of July 19, 2022, Ochoa was with another individual in Uniondale Park when they were approached by the defendants and a third MS-13 member, who were armed with a .45 caliber handgun and at least one knife. After they shot Ochoa to death and stabbed him in the neck and abdomen, the three MS-13 members fled the park.
The September 14, 2022 Murder of Hector Valencia Gomez
Surveillance footage from the McDonald’s restaurant revealed that on the afternoon of September 14, 2022, Hernandez and an MS-13 associate were being chased by Gomez towards a dumpster next to the McDonald’s drive-thru. Hernandez waved over Aquino-Hernandez who was armed with a 9-millimeter handgun. Aquino-Hernandez fired at Gomez, who was running in between cars lined up at the drive-thru. Gomez stumbled several steps before collapsing, after which point Aquino-Hernandez fired additional rounds at Gomez as he lay on the pavement. The MS-13 associate also struck Gomez in the arm with a large knife. The surveillance video also shows a mother and her small child, several feet away from the attack, running for cover during the shooting. Hernandez and Aquino-Hernandez were later arrested in Maryland where they had traveled to avoid apprehension for the murders.
Finally, the defendants are charged with conspiring to distribute cocaine and marijuana on Long Island, the proceeds of which were used to help finance the MS-13’s criminal operations, including purchasing firearms, ammunition and other weapons, and sending money to MS-13 leadership in Central America.
The indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras and Mexico, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 65 murders in the Eastern District of New York, and it has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, the NCPD, the Suffolk County Police Department, the Nassau County Sheriff’s Department, the Suffolk County Sheriff’s Office, the Suffolk County Probation Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department, and the New York State Department of Corrections and Community Supervision.
If convicted, each defendant faces up to life in prison, or the possibility of the death penalty. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Megan E. Farrell, Justina L. Geraci, and Paul G. Scotti from the Office’s Long Island Criminal Division.
The Defendants:
CARLOS HUMBERTO AQUINO-HERNANDEZ ( also known as “Caprichoso” and “Flaco”)
Age: 22
Uniondale, New York and Baltimore, MarylandGERSON HERNANDEZ (also known as “Steven Jefferson,” “Jeffrey,” “Serio,” “Serioso” and “Necio”)
Age: 22
Hempstead, New YorkE.D.N.Y. Docket No. 23-CR-369 (JMA)
Luzerne County Woman Sentenced to Three Years in Prison for Straw Purchasing FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Quinniea Gross, age 27, of Wilkes Barre, Pennsylvania, was sentenced on October 10, 2023, to 36 months in prison by United States District Court Judge Malachy E. Mannion for giving false statements in connection with acquisition of firearms.
According to United States Attorney Gerard M. Karam, Gross was convicted by a jury of conspiracy and straw purchasing firearms in July 2023. Gross accompanied a drug addict to several firearms dealers in Northeastern Pennsylvania and took possession of firearms purchased by her coconspirator. Gross did so for drug traffickers to whom the drug addict owned money for a drug debt. Gross also purchased four firearms herself, two of which were seized in an unrelated drug trafficking investigation in Philadelphia. Coconspirator Christian Barnes was sentenced to 15 months in prison on August 1, 2023, for conspiracy to make false statements in connection with the acquisition of eight firearms.
In addition to the 3-year prison term, Judge Mannion ordered Gross to serve a 2-year term of supervised release, and to pay $400 in special assessments and court fees.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Luzerne County District Attorney’s Office. Assistant U.S. Attorneys Brian Gallagher and Todd K. Hinkley prosecuted the case.
This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted, and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
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Level 3 Sex Offender Pleads Guilty to Receiving Child Pornography from a Minor He Solicited on TikTokRead the Press Release
BOSTON – A Boston man pleaded guilty today to coercing a minor he found on TikTok to send him child sexual abuse material.
Hector Acevedo, 33, of Jamaica Plain, pleaded guilty to one count of receipt of child pornography. U.S. District Judge Patti B. Saris scheduled sentencing for Jan. 24, 2024.
Acevedo is a Level 3 registered sex offender. Acevedo was previously convicted in Suffolk County Superior Court on multiple child and sexual exploitation offenses including trafficking of a person for sexual servitude, extortion by threat of injury, posing or exhibiting a child in state of nudity or sexual conduct, dissemination of matter harmful to minors, dissemination of child pornography and purchase or possession of child pornography. On Feb. 13, 2018, Acevedo was sentenced to five-to-seven years in state prison and three years of probation.
While on state probation, Acevedo solicited a minor via TikTok and coerced the victim to engage in sexual conduct over video chat.
The charge of receipt of child pornography by an individual previously convicted of a child pornography offense provides for a sentence of at least 15 years and up to 40 years in prison, at least five years and up to a lifetime 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; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Arlington and Revere Police Departments. Assistant U.S. Attorney Elianna Nuzum of the Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Leader of Craven County Armed Drug Organization Trafficking Methamphetamine and Fentanyl Sentenced to 35 YearsRead the Press Release
RALEIGH, N.C. – The leader an armed drug-trafficking organization (DTO) responsible for moving kilogram quantities of methamphetamine and fentanyl in and around the Craven County area was sentenced yesterday to 420 months in prison for drug trafficking and gun charges. On March 3, 2023, Ivan Leonardo Medina-Beltran, age 45, pled guilty to the charges. Medina-Beltran is an undocumented noncitizen from Sonora, Mexico.
“Medina-Beltran supplied kilogram quantities of fentanyl and methamphetamine to the New Bern area. He even tried to coordinate the shipment of nearly a kilogram of highly pure methamphetamine to Eastern North Carolina while he was held in jail. The 35-year sentence stands as a warning to would-be drug traffickers. The U.S. Attorney’s Office is partnering with Craven County every day to keep deadly narcotics off our streets, and dismantling the drug-trafficking networks that supply them,” said U.S. Attorney Michael Easley.
“We are committed to collaborating with our law enforcement partners to investigate, disrupt and dismantle transnational criminal organizations that are responsible for the illicit distribution of methamphetamine and fentanyl that has resulted in the death of thousands and the ruining of lives and families throughout the country,” said Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) Charlotte that covers North and South Carolina. “This sentence sends a strong message to narcotic distributors that law enforcement will work aggressively with the United States Attorney’s Office to combat the poisoning of our communities with these egregious and dangerous drugs and bring those involved to justice.”
“This prosecution by the U.S. Attorney’s Office has eliminated a major source of methamphetamine and fentanyl in Craven County” said Sheriff Chip Hughes. “The Craven County Sheriff’s Office Special Investigations Bureau will continue to work with our federal, state, and local law enforcement partners to investigate, arrest, and prosecute drug traffickers.”
According to court documents and other information presented in court, HSI, the Drug Enforcement Administration (DEA), and Craven County Sheriff’s Office in coordination with federal, state, and local law enforcement partners launched an investigation into a cartel-connected drug trafficking organization responsible for acquiring kilogram quantities of methamphetamine and fentanyl from the southwest border and distributing them in and around Craven County. Through the use of confidential sources, surveillance and controlled buys, law enforcement identified several high-level operatives in the organization, including the leader, Medina-Beltran.
From January to October 2022, law enforcement conducted sixteen controlled purchases of ice methamphetamine, fentanyl, and cocaine from Medina-Beltran and other members of the conspiracy. Medina-Beltran sold narcotics directly to confidential informants working at the direction of law enforcement. On September 7, 2022, he sold over 60 grams of fentanyl to a confidential informant, while on September 8, 2022, he sold over 290 grams of ice to a confidential informant.
On October 31, 2022, multiple search warrants were executed at residences associated with the DTO, including the residence of Medina-Beltran. The search of his home yielded five grams of cocaine, an AR-15 style 5.56 rifle, a .45 caliber handgun, and cash.
While in pretrial custody, Medina-Beltran coordinated a shipment of approximately two pounds of ice methamphetamine from California to the Eastern District of North Carolina, which was seized by law enforcement.
Multiple other individuals associated with the DTO, including two other high-level operatives have been indicted. Xavier Garza (4:22-cr-00075-D-3) pled guilty to drug trafficking and firearm charges on May 16, 2023. Sentencing is pending in his case.
This investigation was an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Drug Enforcement Administration; Homeland Security Investigations; United States Postal Inspection Service; the North Carolina State Bureau of Investigation; the Craven County Sheriff’s Office, and the New Bern Police Department investigated the case and Assistant U.S. Attorneys Katherine Englander and Caroline Webb prosecuted the case.
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. 4:22-cr-00075-D-1.
Law Enforcement Agencies in Western Washington receive more than $3.6 million in U.S. Department of Justice Grant FundingRead the Press Release
Seattle – More than a dozen law enforcement agencies in western Washington received U.S. DOJ Byrne grant funding to support local needs ranging from body-worn camera programs, to specialized equipment needs, to community outreach programs, announced Acting U.S. Attorney Tessa M. Gorman. The grants have been awarded over the last few weeks in advance of the new fiscal year.
“The largest amount of Byrne Grant funding, some $2 million, goes to the King County Sheriff’s Office to pay for implementation of body-worn cameras and for hiring mental health professionals as part of the King County Crisis Intervention team,” said Acting U.S. Attorney Gorman. “But even the smaller grants can make a big difference in jurisdictions where leaders have identified specific needs in their communities.”
The City of Seattle was awarded $918, 880 as the fiscal agent for a dozen neighboring jurisdictions. Some of the grant funding includes: $38,323 for fireworks emphasis patrols in Auburn; $10,861 for de-escalation tools in Des Moines; $11,310 for less lethal equipment in Shoreline; and $369,623 to help fund anti-crime coordinators in Seattle. The coordinators will work with populations that have special needs such as the elderly, immigrant, or disabled members of our community.
These are the other Byrne grant recipients and the grant purpose:
Bremerton - $17,240 – Crime prevention activities and initiatives
Port Angeles/Clallam County - $13,720 – Body worn camera program
Marysville - $13,541 – fingerprinting equipment, street cameras, language programs
Puyallup - $13,396 – automated fingerprint equipment
Longview - $11,852 – School resource officer
Lynnwood - $11,780 – firearms and accessories for officers
Everett - $39,544 – polygraph and police pursuit equipment
Kitsap County - $45,613 – purchase of police training simulator
Lakewood - $45,051 – video monitoring equipment and crime analysis software
Bellingham/Whatcom County - $47,374 – equipment for the Civil Disturbance Unit and citizen engagement software. Whatcom Co. - officer safety equipment.
Clark County - $140,576 – to strengthen community policing and enhance public protection
Tacoma/Pierce County - $358,803 – Tacoma: youth crime reduction programs. Pierce County: sex offender records management and notification.
The Byrne Grants are named in honor of New York City Police Officer Edward R. Byrne, who was killed in the line of duty on February 26, 1988. Officer Byrne was just 22 years old.
Las Vegas Contractors Sentenced to Prison for Release of Asbestos at Marijuana Grow FacilityRead the Press Release
LAS VEGAS – Rene Morales and Hector Vasquez were each sentenced to six months in prison yesterday for violating the Clean Air Act during the renovation of a Las Vegas warehouse into a marijuana growing facility. Both men pleaded guilty earlier this year to violating the Clean Air Act by releasing toxic asbestos fibers into the air during the renovation work. Inhalation of airborne asbestos fibers can cause lung cancer, asbestosis, and mesothelioma, an invariably fatal disease. Congress and the Environmental Protection Agency (EPA) have determined that there is no safe level of exposure to asbestos.
According to documents filed with the Court, the defendants’ firm Top Rank Builders was hired to renovate the warehouse located at 2310 Western Avenue into a facility suitable for growing marijuana. During the renovation, the defendants caused workers to remove drywall and ceiling texture that the defendants should have known would contain asbestos, without employing any abatement measures. This resulted in the release of asbestos fibers into the air, placing workers and the community in imminent danger of death or serious bodily injury from inhalation of the toxic fibers.
The defendants also admitted to lying to investigators about their involvement in the renovation, and to taking steps to cover up the removal by claiming that bags marked “asbestos” were intended for a training exercise rather than disposal of asbestos-containing materials at the warehouse.
“Failure to comply with federally-mandated protocols for asbestos is a serious offense with serious consequences in the District of Nevada,” said United States Attorney Jason M. Frierson for the District of Nevada. “These crimes endanger the lives of workers, tenants, and the community at large. Our Office will continue to work with our federal, state and local partners to hold those seeking to cut corners on asbestos remediation accountable.”
“The defendants knowingly ignored regulations on the safe management of asbestos, putting workers and the public at risk,” said Acting Special Agent in Charge Benjamin Carr of EPA’s Criminal Investigation Division in Nevada. “The sentences demonstrate that the EPA and our law enforcement partners will pursue and prosecute those who intentionally violate environmental laws and endanger our communities.”
Special agents of the EPA and employees of the Clark County Department of Air Quality investigated the case. Senior Trial Attorney Cassandra Barnum of ENRD’s Environmental Crimes Section and Assistant United States Attorney Jean Ripley for the District of Nevada prosecuted the case.
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Justice Department Secures Agreement in Tennessee School Desegregation CaseRead the Press Release
The Justice Department announced today that it has secured an agreement to improve and expand educational opportunities for students in the Fayette County School District in Tennessee. The consent order was approved by U.S. District Court Judge S. Thomas Anderson for the Western District of Tennessee as part of a longstanding school desegregation case.
Under the consent decree, the school district will improve its practices for identifying and serving students in its gifted programs and in dual enrollment classes, which give high school students access to college-level coursework; bolster efforts to recruit and retain diverse faculty; and revise student discipline policies to prevent racial discrimination and support a positive climate, including by ending the use of corporal punishment.
“School desegregation and equal access to a quality education was critically important nearly 70 years ago when the Supreme Court decided Brown v. Board, and it is critically important today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains steadfast in our commitment to making real the promise of Brown and dismantling the legacy of discrimination in our schools. This consent decree is a giant step forward for students deserving of racially just and equitable outcomes in Fayette County Schools. These reforms will expand access to enriched academic opportunities and give students the positive, inclusive learning environment they need to thrive.”
As part of the consent decree, the court declared the district had met its desegregation obligations in several areas of operations, including staff assignment, facilities, transportation and extracurricular activities. The consent decree also provides that the district will, among other requirements:
- Work with the Justice Department and private plaintiffs represented by the NAACP Legal Defense Fund to develop an effective and sustainable student assignment policy to further desegregation in its schools;
- Adopt a plan to ensure that all students, including Black students, are properly identified for enrollment in its gifted program and that the district delivers gifted services to properly designated students in a nondiscriminatory manner;
- Review its enrollment in advanced and dual enrollment courses in secondary schools to identify any racial disparities and implement practicable responses designed to reduce barriers that limit the participation of Black students;
- Work with a consultant to implement changes to its student discipline policies designed to reduce racial disparities in discipline, and instill positive reinforcement techniques;
- Eliminate the use of corporal punishment, a practice that undermines effective implementation of positive behavioral interventions; and
- Conduct a comprehensive review of the district’s hiring policies and procedures to identify racial disparities in the recruitment, hiring, promotion and retention of Black faculty and implement appropriate remedial measures.
Next year marks the 70th anniversary of the U.S. Supreme Court’s decision in Brown v. Board of Education. The Justice Department’s Civil Rights Division continues to prioritize enforcement of desegregation orders in school districts formerly segregated by law, to ensure that all children can access the building blocks of educational success. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/report.
fayette_consent_order.pdfJustice Department Announces Indictment Against Two Men for Trafficking Protected BirdsRead the Press Release
The Justice Department today announced the unsealing of an indictment charging Dr. John Waldrop, 74, of Cataula, Georgia, and Toney Jones, 53, of Eufala, Alabama, on conspiracy, smuggling, Endangered Species Act (ESA) and money laundering charges. An arraignment in federal court is scheduled for Oct. 16.
The indictment alleges that Waldrop and Jones illegally imported hundreds of taxidermy bird mounts and thousands of eggs into the United States between Jan. 1, 2016, and Dec. 10, 2020; they did not import any live birds. U.S. law and regulations require that importers declare wildlife to the U.S. Fish and Wildlife Service (USFWS) and Customs authorities. Permits are also required for wildlife protected by the ESA, Migratory Bird Treaty Act (MBTA) and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
“The Endangered Species Act is a vital law in the fight against international trafficking of protected wildlife,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “Rare and endangered birds have important roles in their habitats, and we are committed to preventing and deterring their unlawful removal.”
“It is in our national and global interest to enforce federal laws and treaties that protect endangered birds from the harm of alleged profiteers like the defendants, and the Eastern District of New York will do so,” said U.S. Attorney Breon Peace for the Eastern District of New York.
“This investigation highlights the immense pressure illegal trade places on imperiled bird species around the world, and the Service's commitment to upholding laws and treaties that prevent the exploitation of foreign and domestic species,” said Assistant Director Edward Grace of the USFWS Office of Law Enforcement. “We hope this indictment sends a clear message that our investigators will work tirelessly to seek justice for poached wildlife.”
According to the indictment, Waldrop and Jones used online sales sites such as eBay and Etsy to buy birds and eggs from around the world, including Germany, Hungary, Iceland, Italy, Lithuania, Malta, Russia, South Africa, the United Kingdom and Uruguay. Waldrop and Jones imported and collected myriad species of protected birds, such as canary, dipper, duck, eagle, falcon, grouse, gull, hawk, heron, hoopoe, kestrel, kinglet, lapwing, murre, owl, parrot, pochard, rail, teal, snipe, spoonbill, vulture and woodpecker.
In addition to the conspiracy, the indictment charges Waldrop and Jones with importing three packages containing birds and eggs in 2020 through John F. Kennedy International Airport in violation of smuggling and ESA laws. The packages contained a Levant sparrowhawk, a grasshopper buzzard-hawk, two gull eggs, two murre eggs and one unidentified bird egg. The final count of the indictment alleges that Waldrop and Jones conspired to commit money laundering by sending funds out of the United States to finance bird smuggling. The indictment also seeks forfeiture of 779 bird mounts and 2,594 eggs alleged to have been illegally imported into the United States.
The maximum sentence for the smuggling and money laundering charges is 20 years in prison and a $250,000 fine, or twice the economic gain or loss. The conspiracy charge carries a five-year maximum sentence, and the ESA is punishable by six months in prison.
The CITES treaty regulates trade in endangered or threatened species through permit requirements. The United States and 183 other countries are signatories to the CITES treaty, which regulates trade in endangered or threatened species through permit requirements. The MBTA implements treaties with Canada, Japan, Mexico and Russia to protect many native U.S. bird species that also have habitats in those countries.
The USFWS’s Office of Law Enforcement in Valley Stream, New York, conducted the investigation as part of Operation Final Flight. The operation focused on the trafficking of protected birds into the United States. The U.S. Postal Inspection Service and Alabama Department of Conservation and Natural Resources assisted with the investigation.
The government is represented by Senior Trial Attorney Ryan Connors of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Anna Karamigios for the Eastern District of New York.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Jeanette Resident Sentenced for Possession of a Firearm and Ammunition by a Convicted FelonRead the Press Release
PITTSBURGH, PA - A resident of Jeannette, Pennsylvania, has been sentenced in federal court today on a charge of possession of a firearm and ammunition by a convicted felon, United States Attorney Eric G. Olshan announced.
According to information presented to the court, on or about February 22, 2019, Kenyetta Jones, age 27, knowingly possessed a firearm and ammunition as a previously convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition. Jones also admitted to possessing with the intent to distribute heroin and fentanyl at the time of the offense.
United States District Court Judge W. Scott Hardy sentenced Jones to 60 months in prison to be followed by three years of supervised release.
Assistant United States Attorney Carl J. Spindler prosecuted this case on behalf of the government.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, along with the Department of Homeland Security conducted the investigation leading to the successful prosecution of Jones.
Jacksonville Brothers Sentenced to Federal Prison for Child Sexual Exploitation Offenses and Ordered to Pay $141,000 in Restitution to VictimsRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Jonathan William Brown (26, Jacksonville) to five years in federal prison for receiving photos and videos depicting the sexual abuse of young children. His brother, Joshua Thomas Brown (28, Jacksonville), was sentenced to four years and six months in federal prison for possessing similar illegal photos and videos. Jonathan Brown was also ordered to serve a 15-year term of supervised release, register as a sex offender, and pay $46,000 in restitution to child victims. The court ordered Joshua Brown to serve a 10-year term of supervised release, register as a sex offender, and pay $95,000 in restitution to child victims.
Jonathan William Brown had pleaded guilty on March 16, 2023, and Joshua Brown had pleaded guilty on June 1, 2023. Both have been detained since their arrests on August 30, 2022.
According to court documents, in January 2022, an internet service provider documented several uploads of child sexual abuse material to a particular online account with the user name “Jonathan Brown” and other identifiers that were associated with this same name. These reports were forwarded to the Jacksonville Sheriff’s Office and the St. Johns County Sheriff’s Office for investigation. The investigation revealed that at least one contraband file had been uploaded using an internet connection that resolved to Jonathan Brown’s residence in Jacksonville.
On July 8, 2022, agents with Homeland Security Investigations (HSI), together with officers from the Jacksonville Sheriff’s Office, the St. Johns County Sheriff’s Office, and the Clay County Sheriff’s Office executed a federal search warrant at Jonathan Brown’s residence. Jonathan Brown was at the residence. During the execution of this warrant, agents seized several electronic devices, including computers, cellphones, and storage media. During an interview with law enforcement, Jonathan Brown stated that he had downloaded child sexual abuse materials, he had started engaging in this conduct “a long time ago” when he was in middle school, and since then has been in a cycle of seeking such materials on the internet, downloading it, and then deleting it. Forensic analysis of his electronic devices revealed that Jonathan Brown had downloaded more than 400 photos and 10 videos of child sexual abuse materials, including photos depicting infants and toddlers being sexually abused.
Joshua Brown lived at the same residence and was present during the search on July 8, 2022. During an interview with law enforcement, Joshua Brown admitted that a particular cellphone that was seized belonged to him and that only he used it. Forensic analysis of this device revealed that it contained hundreds of image and video files of child sexual abuse material. Further investigation revealed that Joshua Brown possessed more than 2,100 videos and 600 photos depicting children being sexually abused that were recovered from his three cellphones, a gaming computer, an external hard disk drive, and his online cloud storage account.
“This disturbing investigation exposed the Brown brothers, who admittedly shared child sexual abuse materials on the internet for many years. These images included vile depictions of infants and toddlers being sexually abused,” said Homeland Security Investigations (HSI) Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Thanks to the law enforcement partnerships forged under the Northeast Florida INTERCEPT Task Force, we were able to identify these brothers and put a stop to their victimization of our most vulnerable.”
These cases were investigated by the Northeast Florida INTECEPT Task Force, to include Homeland Security Investigations (HSI) Jacksonville, the Jacksonville Sheriff’s Office, the St. Johns County Sheriff’s Office, the Clay County Sheriff’s Office, and the Columbia County Sheriff’s Office. They were prosecuted by Assistant United States Attorney D. Rodney Brown.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ithaca Man Convicted at Bench Trial of Wire Fraud and Engaging in Transactions in Criminally Derived PropertyRead the Press Release
SYRACUSE, NEW YORK – Ejembi Onah, age 60, of Ithaca, New York, was convicted yesterday at the conclusion of a non-jury trial of two counts of wire fraud and three counts of transacting in criminally derived property for fraudulently obtaining two Paycheck Program (PPP) loans during the pandemic, receiving over $140,000 in loan proceeds, and spending those proceeds, among other things, in three separate transactions each exceeding $10,000.
United States Attorney Carla B. Freedman; Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (IRS-CI); and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
PPP loans were United States Small Business Administration (SBA)-guaranteed, forgivable loans authorized in the Coronavirus Aid Relief, Economic Security (CARES) Act, which was enacted in March 2020 to provide emergency financial assistance to Americans suffering adverse economic effects from the COVID-19 pandemic.
The government’s evidence at trial established that Onah submitted two fraudulent PPP loan applications to two different lenders in June 2020. Each application included false information about the payroll and number of employees at Onah’s company, which he claimed was engaged in a seasonal nanotechnology business, and were supported by falsified tax returns. Onah spent the more than $140,000 he received to, among other things, pay back rent at his personal residence, lease a luxury car, and fund his expenses of daily living.
Sentencing is scheduled for February 15, 2024. Onah faces up to 20 years’ imprisonment for each wire fraud count and up to 10 years’ imprisonment for each money laundering count, a term of post-imprisonment supervised release of up to three years, restitution to the victims, and a fine of up $250,000 per count. A defendant’s sentence is imposed by a judge based on the statutes the defendant violated, the U.S. Sentencing Guidelines, and other factors.
In addition, the Court found during the trial that Onah must forfeit to the United States over $140,000 in loan proceeds and an additional nearly $100,000 of those proceeds that he spent in three different transactions exceeding $10,000 each.
HSI and IRS-CI investigated the case. The case is being prosecuted by Assistant United States Attorneys Michael D. Gadarian and Joshua R. Rosenthal.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Iowa Nurse Pleads Guilty to Diverting Fentanyl at Waterloo HospitalRead the Press Release
An Iowa nurse who diverted fentanyl at a Waterloo hospital pled guilty today in federal court in Cedar Rapids. Luis Ramirez-Cajas, age 42, from Cedar Rapids, was convicted of one count of acquiring a controlled substance by misrepresentation, fraud, deception, and subterfuge.
At the plea hearing and in a plea agreement, Ramirez-Cajas admitted that the State of Iowa granted him a nursing license in 2012. In August 2022, before Ramirez-Cajas began working at a Waterloo hospital, Ramirez-Cajas and the Iowa Board of Nursing’s Iowa Nurse Assistance Program (“INAP”) entered into an agreement under which Ramirez-Cajas promised to abstain from drugs and alcohol and to refrain from working with narcotics. Ramirez-Cajas previously had admitted to diverting and using narcotics in the emergency room of an Iowa City hospital in late 2021 and early 2022. The Iowa City hospital was an affiliate of the Waterloo hospital and in the same hospital network. Ramirez-Cajas knowingly violated his agreement with INAP by accepting employment at the Waterloo hospital.
In September and October 2022, while working at the Waterloo hospital, Ramirez-Cajas diverted fentanyl, hydromorphone, and morphine to his own use. All these drugs are controlled substances. Ramirez-Cajas diverted the drugs mostly through purported wasting—falsely documenting in the Waterloo hospital’s records, for example, that he had wasted a full vial because a patient purportedly had refused the drug after Ramirez-Cajas pulled it. Instead of wasting the controlled substances, Ramirez-Cajas diverted them for personal use.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Ramirez-Cajas remains free on bond pending sentencing. Ramirez-Cajas faces a possible maximum sentence of four years’ imprisonment, a $250,000 fine, and one year of supervised release following any imprisonment.
In December 2022, Ramirez-Cajas surrendered his nursing license to the Iowa Board of Nursing with leave to apply for reinstatement within one year. As part of his plea agreement, Ramirez-Cajas agreed to forfeit his nursing license to the United States.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Iowa Medicaid Fraud Control Unit and the Drug Enforcement Administration, Diversion Control Division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2049.
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Inmate Sentenced to 37 Months’ Imprisonment for AssaultRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dontrace Blaine, age 36, an inmate at the United States Penitentiary Canaan, in Waymart, Pennsylvania, was sentenced on October 10, 2023, to 37 months’ imprisonment by United States District Court Judge Malachy E. Mannion for assault with a dangerous weapon.
According to United States Attorney Gerard M. Karam, on November 8, 2020, Blaine assaulted another inmate with a combination lock wrapped in a bedsheet, causing injury.
The matter was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation (FBI). Assistant United States Attorney James Buchanan prosecuted the case.
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Idaho man sentenced to 10 years in prison for trafficking meth in Great Falls, HelenaRead the Press Release
GREAT FALLS — An Idaho man who admitted to trafficking methamphetamine in Great Falls and Helena was sentenced today to 10 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Thomas Lee Dieruf, 40, of Osborn, Idaho, pleaded guilty in May to possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that law enforcement in Great Falls and Helena identified Dieruf as supplying meth, and in January 2022, investigators arranged for a purchase of meth from Dieruf. After agreeing to the deal, Dieruf left his home in Idaho and traveled to Montana, where law enforcement detained him at a gas station in St. Regis. Officers executing a search warrant on his car located approximately a quarter pound of meth, a digital scale, plastic baggies and two pistols.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case. The Russell Country Drug Task Force, Missouri River Drug Task Force, FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Hartford Gang Member Sentenced to 63 Months in Federal Prison for Drug and Gun Offenses, Violating Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOEL DeLEON, JR., also known as “Psycho,” 42, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 63 months of imprisonment, followed by four years of supervised release, for narcotics distribution and firearm possession offenses, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, this matter stems from an investigation into gang-related drug trafficking and firearm possession by members of Los Solidos. The investigation, which included court-authorized wiretaps, revealed that Luis Feliciano, also known as “Louminaty,” distributed fentanyl, heroin, cocaine, and crack to customers and other distributors in the Hartford area, and also to individuals in New York and Maine.
On March 8, 2022, investigators approached DeLeon, who was sitting in his vehicle on Wolcott Street, after they had observed him meeting with Feliciano and engaging in suspected drug activity. DeLeon was arrested on state charges after he was found with packaged fentanyl and crack cocaine, and a loaded .22 magnum revolver.
DeLeon’s criminal history includes multiple felony narcotics convictions, including a federal conviction for possession with intent to distribute heroin, for which he was sentenced in November 2015 to 51 months of imprisonment and four years of supervised release. He was released from federal prison in August 2018 and was on supervised release at the time of his arrest in March 2022.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On June 8, 2022, a grand jury returned an indictment charging DeLeon, Feliciano, and 14 others with various narcotics distribution and firearm possession offenses.
DeLeon has been detained since his federal arrest on July 5, 2022. On January 19, 2023, he pleaded guilty to unlawful possession of a firearm by a felon, and possession with intent to distribute fentanyl and cocaine.
Judge Shea sentenced DeLeon to 57 months of imprisonment for the narcotics and firearm offenses, and a consecutive six months of imprisonment for violating his supervised release.
Feliciano pleaded guilty and awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff, with the assistance of Law Student Intern Christopher D’Urso, through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Senior Fiscal Officer for Non-Profit Organization Charged with Multi-Million Dollar Embezzlement SchemeRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Marcia Joseph with wire fraud in connection with her embezzlement of approximately $2.3 million from her employer, a non-profit organization (Company-1) that provides employment and education services for those in need. Joseph was arrested earlier today and made her initial appearance this afternoon before United States Magistrate Judge Peggy Kuo. The defendant was released on a $50,000 bond.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the arrest and charges.
“As alleged, Joseph lined her pockets with millions of dollars that she stole from a charity,” stated United States Attorney Peace. “Money that should have gone to support those with employment and educational needs instead was used to pay for the defendant’s personal expenses, including mortgage payments, spa treatments, home remodeling, and landscaping. Today’s charges send a message to those entrusted with positions of trust that if you abuse that trust for personal gain, you will be arrested and prosecuted.”
“Depleting resources procured for those with special needs is among the most egregious of financial crimes. As we allege today, Joseph did just that by embezzling millions of dollars from the company for which she worked, diverting money away from programs for those in need and right into her pockets. We remind the public that those who engage in similar schemes will be met with a similar fate,” stated FBI Assistant Director-in-Charge Smith.
“This former senior fiscal officer at a Brooklyn-based nonprofit embezzled more than $2.3 million by submitting to the nonprofit fictitious invoices for services, some of which purportedly related to City contracts, for payment to an entity that the defendant created and controlled, according to the criminal complaint,” stated DOI Commissioner Strauber. “As charged, the defendant used her position of trust and responsibility to line her pockets at the expense of a nonprofit that receives City funding and provides critical services to vulnerable New Yorkers. I thank the FBI and the U.S. Attorney's Office for the Eastern District of New York for their partnership in this investigation and their commitment to protect important public resources from fraud and abuse.”
According to the complaint, Joseph was the senior fiscal officer of Company-1, a 501(c)(3) non-profit organization located in Brooklyn, New York that provides comprehensive services to support employment opportunities for persons with emotional, developmental, and/or physical disabilities, and those who are economically disadvantaged. Joseph set up a company called Prestige Business Services (“Prestige”), which purported to provide specialized services to other companies on behalf of Company-1. In truth, Prestige performed no work, and instead was used by Joseph for the exclusive purpose of embezzling more than $2.3 million from Company-1 over a 16-year period. Joseph used the money paid by Company-1 to Prestige to pay for numerous personal expenses, including approximately $235,000 in mortgage payments; 207,000 in credit card payments; $98,000 in car payments; $45,000 in Amazon expenses; and various other personal items, such as home remodeling, spa treatment, landscaping expenses, and luxury goods. Joseph also withdrew nearly $100,000 in cash, disbursed approximately $16,000 to friends and family, and issued approximately $50,000 in Prestige checks to herself.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Eric Silverberg is in charge of the prosecution with assistance from Paralegal Specialists Elizabeth Reed and Melissa Bennett.
The Defendant:
MARCIA JOSEPH (also known as “Marcia James,” “Marcia Lewis,” and “Marcia Peters”)
Age: 57
Baldwin, New YorkE.D.N.Y. Docket No. 23-MJ-883
Former Nurse from Atlantic County Admits Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Anthony Barbarino, 37, of Egg Harbor City, New Jersey, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
From April 12, 2022, to Aug. 3, 2022, Barbarino knowingly possessed 93 still photographs and 108 videos of child sexual abuse across three electronic devices, including at least one image of a prepubescent minor or a minor under 12 years of age, and at least one image that portrayed sadistic or masochistic conduct or other depictions of violence. Barbarino was arrested and charged by federal criminal complaint on Aug. 3, 2022, with the same offense. Prior to that arrest, Barbarino was employed as a nurse.
The count of possession of child pornography that involved at least one image that involved a prepubescent minor or a minor under 12 years of age carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 13, 2024.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to today’s guilty plea. He also thanked the Atlantic County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Camden.
barbarino.information.pdfFormer Head of Boro Park Shomrim Society Sentenced to More Than 17 Years in Prison for Transporting a 15-Year-Old Girl with Intent to Engage in Sexual ActivityRead the Press Release
Earlier today, in federal court in Brooklyn, Jacob Daskal, the former head of the Boro Park Shomrim Society (the “Shomrim”), a private, Orthodox Jewish crime-patrol group associated with the New York Police Department, was sentenced by United States District Judge Nicholas G. Garaufis, to 210 months in prison and a $250,000 fine for transporting a minor with intent to engage in criminal sexual activity. Daskal pleaded guilty to the charge in July 2023. As part of the sentence, Daskal is required to register as a sex offender.
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 sentence.
“Daskal used his position of power to inflict serious mental, emotional and physical harm on a vulnerable underaged victim, who belonged to the same community he promised to serve and protect,” stated United States Attorney Peace. “Today’s sentence brings some measure of justice for the brave victim.”
Mr. Peace also expressed his appreciation to the Kings County District Attorney’s Office and the New York City Police Department for their assistance with the investigation.
As set forth in court filings and statements at court proceedings, in the spring of 2017, as a result of his position with the Shomrim, Daskal was introduced to a 15-year-old girl who was having issues with her family and whom he took into his home and then groomed for sex. Between August and November 2017, Daskal, then 58 years-old, subjected the 15-year-old victim to sexual acts.
During the summer of 2017, the sexual conduct occurred primarily at Daskal’s house in Brooklyn, New York and at his summer house in South Fallsburg, New York. Daskal frequently transported the victim between those locations by way of New Jersey. At the end of August, Daskal, his family and the victim returned full-time to his house in Brooklyn where the abuse continued. As the school year started, the defendant helped the victim find a new school in Chicago, Illinois, and, in October 2017, she moved there to attend that school and live with another family. While the victim was in Chicago, Daskal communicated with the victim via text message and over Skype video chat. On November 5, 2017, Daskal traveled to Chicago to visit the victim. Daskal booked a hotel room in Chicago, and he brought the victim to the hotel for sex. He returned to New York that evening.
Throughout the abuse, Daskal instructed the victim to delete their communications and warned her not to tell anyone about their sexual relationship. Daskal also used his position as a leader in their community to quiet the victim, bragging about his connections to law enforcement and warning her that it would ruin her life if she told anyone about their relationship. In fact, the victim was expelled from her religious school after disclosing her relationship with Daskal to the school principal.
The government’s case is being handled by the office’s Civil Rights Section. Assistant United States Attorneys Erin Reid and Genny Ngai are in charge of the prosecution with assistance from Litigation Analyst Ryan Costley.
The Defendant:
JACOB DASKAL
Age: 64
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-110 (NGG)
Former Federal Contract Employee Pleads Guilty to Child PornographyRead the Press Release
KANSAS CITY, Mo. – A former Lenexa, Kansas, man pleaded guilty in federal court today after child pornography was found on the cell phone he carried into a secure area at the U.S. Department of Energy national security campus in Kansas City, Mo.
Shaun Walker, 41, currently a resident of Springfield, Mo., pleaded guilty before U.S. District Judge Stephen R. Bough to one count of attempting to distribute child pornography over the internet.
Walker was employed by Honeywell Federal Manufacturing and Technology, which is contracted by the Nuclear National Security Administration, at the time of the offense.
According to court documents, Walker entered an inner secure area of the U.S. Department of Energy National Security Campus in Kansas City, Mo., with his personal cell phone on Nov. 29, 2021. Walker contacted Kansas City National Security Campus Security to self-report the violation.
Walker gave his cell phone to security personnel, who reviewed the cell phone to determine if any classified material was present on the phone. During the review, a security officer observed numerous images and videos depicting child pornography. Walker’s phone was seized in order to conduct a forensic examination.
Investigators found an encrypted folder on Walker’s cell phone that contained 21 images and a video of a 5-year-old girl who is known to Walker. Investigators found dozens of additional images and videos of child pornography on Walker’s cell phone. Investigators also found thousands of WhatsApp chats between Walker and females he contacted through a livestreaming pornography website. Walker requested photos and videos of nude underage females conducting sexual acts. As a result of his WhatsApp chats, Walker received and distributed images and videos of child pornography.
Under federal statutes, Walker is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Department of Energy, Office of Inspector General.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Fentanyl trafficking in Great Falls sends Washington man to prison for five yearsRead the Press Release
GREAT FALLS — A Washington man who admitted coming to Great Falls to sell fentanyl pills was sentenced today to five years in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
Ryan Mark Jensen, 44, of Bremerton, Washington, pleaded guilty in May to possession with intent to distribute fentanyl.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that Jensen was a significant drug dealer in Great Falls and had come to Great Falls from Washington to sell fentanyl pills because the mark-up on the pills was so profitable. In September 2022, the Russell Country Drug Task Force learned that Jensen was distributing methamphetamine and fentanyl pills while staying at a local hotel. Investigators searched his hotel room and found a small backpack containing several hundred fentanyl pills and a digital scale. Law enforcement also found small baggies that appeared to have contained meth residue.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case. The Russell Country Drug Task Force conducted the investigation.
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Federal Jury in Chicago Convicts Man of Sexually Exploiting Child He Met OnlineRead the Press Release
CHICAGO — A federal jury in Chicago has convicted an Ohio man of enticing a 16-year-old Illinois girl into sending him sexually explicit images of herself.
ANDREW BOLTZ, 25, of Kenton, Ohio, was convicted Tuesday on all five counts against him, including four counts of sexual exploitation of a child and one count of receipt of child pornography. Each exploitation conviction is punishable by a mandatory minimum sentence of 15 years in federal prison and a maximum of 30 years. The child pornography conviction is punishable by a mandatory minimum sentence of five years in federal prison and a maximum of 20 years. U.S. District Judge John Robert Blakey did not immediately set a sentencing date.
Boltz began communicating with the then-16-year-old girl in January 2020 on the social media application Omegle. Boltz continued communicating with her via text messaging and the social media application Snapchat. During these communications, Boltz enticed the victim into sending him sexually explicit images of herself. Boltz instructed the girl on what type of sexually explicit conduct should be portrayed in the images.
Boltz was convicted after a six-day trial in U.S. District Court in Chicago. The victim bravely testified at trial about being manipulated and degraded by Boltz.
The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Peru, Ill. Police Department, the LaSalle County, Ill. State’s Attorney’s Office, the Wilmington, Ill. Police Department, the Will County, Ill. State’s Attorney’s Office, the Will County, Ill. Children's Advocacy Center, the Norwalk, Ohio Police Department, and the Cleveland, Ohio Field Office of the FBI. Assistant U.S. Attorneys Elly M. Peirson, Edward A. Liva, Jr., and Kavitha Babu represent the government.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to https://www.missingkids.org/ or calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Federal Court Orders San Antonio-Area Pharmacy and Pharmacist to Pay $275,000 Civil Penalty in Case Alleging Unlawful Opioid DistributionRead the Press Release
A federal court in Texas ordered a San Antonio pharmacy and its pharmacist to pay a $275,000 civil penalty and imposed restrictions related to the dispensing of opioids and other controlled substances.
Pursuant to an agreed consent judgment and permanent injunction, the court enjoined Zarzamora Healthcare LLC, doing business as Rite-Away Pharmacy & Medical Supply #2, along with pharmacist-owner Jitendra Chaudhary, from dispensing certain opioid prescriptions, including combination opioid and benzodiazepine prescriptions. The order also mandates that the defendants undergo periodic comprehensive reviews of their dispensing practices to ensure compliance with the order and the Controlled Substances Act.
The order resolves a civil complaint the government filed on Jan. 21, 2022, in the Western District of Texas. The complaint alleged that the defendants repeatedly dispensed opioids and other controlled substances in violation of the Controlled Substances Act by filling prescriptions while ignoring “red flags” – that is, obvious indications that the prescriptions were not for any legitimate medical use. The complaint also alleged that the defendants altered prescriptions that lacked required information in order to make them appear to be in compliance with DEA regulations.
“The Controlled Substances Act requires pharmacies and pharmacists to ensure that opioids are dispensed for medically legitimate purposes,” said Principal Deputy Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department will continue to hold accountable professionals who flout their obligations regarding potentially dangerous prescription drugs.”
“The distribution of opioids and other prescription drugs by healthcare practitioners throughout the country has caused immense harm to our communities over the years,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “My office takes this issue very seriously and will litigate against healthcare professionals when warranted.”
“A pharmacist must resolve all “red flags” before the dispensation of any prescription drugs,” said Special Agent in Charge Daniel Comeaux of the Drug Enforcement Agency (DEA) Houston Division. “If the requirements of a proper prescription are not met, the men and women of the DEA Diversion Control Division are always ready to hold these pharmacists accountable .”
U.S. District Judge Jason K. Pulliam entered the consent decree in U.S. District Court for the Western District of Texas.
The DEA’s San Antonio District Office Tactical Diversion Squad investigated the case.
The case is being handled by Assistant U.S. Attorney Erin Van De Walle for the Western District of Texas and Trial Attorneys Scott Dahlquist and Ryan Norman of the Civil Division’s Consumer Protection Branch.
Claims made in a complaint are merely allegations that the United States must prove if a case proceeds to trial. The claims resolved by the injunction announced today are allegations only, and there has been no determination of liability.
Consent DecreeDistrict Man Indicted on Enhanced Second Degree Theft for September Package Thefts Near H Street CorridorRead the Press Release
WASHINGTON –Daniel Greene, 41, of Washington, D.C., was indicted today by a grand jury in the Superior Court of the District of Columbia on two counts of second-degree theft stemming from the Sept. 16, 2023, package thefts from the 600 block of G Street NE, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith of the Metropolitan Police Department (MPD).
Greene is to be arraigned on Friday, Oct. 13, 2023, at a hearing before a Superior Court judge. He faces a maximum of 15 years in prison if convicted of the charges.
According to the government’s evidence, on Sept. 16, 2023, at about 2:45 p.m., Greene approached homes in the 600 block of G Street NE and stole packages from the porches of two of them. He walked away and was stopped by members of the MPD while he was in possession of the stolen packages.
Greene has more than two prior theft convictions, though not from the same occasion, and therefore is subject to enhanced penalties for his alleged theft, including a mandatory minimum sentence of one year in jail.
This case is being investigated by the MPD. It is being prosecuted by Assistant U.S. Attorney Hannah Skopicki.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Convicted Felon Sentenced to 10 Years in Federal Prison for Possessing Fentanyl, Firearms and AmmunitionRead the Press Release
CONCORD – A Weare man was sentenced today to ten years in federal prison for possessing firearms and ammunition as a prohibited person, and possessing with intent to distribute fentanyl in New Hampshire, U.S. Attorney Jane E. Young announces.
Brian Elliott, age 32, was sentenced by U.S. District Court Chief Judge Landya McCafferty to 120 months in prison and 5 years of supervised release. On June 8, 2023, Elliott pled guilty to one count of possessing with intent to distribute fentanyl, and two counts of being a felon in possession of firearms and ammunition.
“The lengthy sentence imposed by the Court on the defendant is just punishment for the egregious nature of his conduct,” U.S. Attorney Young stated. “The defendant was a convicted felon who possessed multiple firearms and ammunition, and attempted to poison our community with large amounts of fentanyl. He pointed a weapon at a police officer, and later engaged in a standoff with police officers in Manchester during his flight from his crime spree. The message from the courthouse today was clear: this dangerous conduct will not be tolerated in New Hampshire.”
On May 22, 2021, Elliott fled on foot following a vehicle stop by a Goffstown Police Department officer. Elliott drove his vehicle at a high rate of speed on the wrong side of the road prior to jumping from his moving vehicle in order to flee from the pursuing officer. During a subsequent foot chase, he pointed a gun at the officer and threatened to shoot the officer. As described in the plea agreement, Elliott dropped a backpack containing approximately 138 grams of fentanyl and over 100 rounds of various types of ammunition. A loaded firearm was also recovered from the scene the next day. On May 24, 2021, Elliott was apprehended at a Holiday Inn in Manchester, after negotiators succeeded in getting him out of his room. A subsequent search of his hotel room yielded additional fentanyl, as well as another firearm and ammunition. Elliott was a convicted felon and was thus legally prohibited from possessing firearms.
The Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Goffstown Police Department and Manchester Police Department. Assistant U.S. Attorneys Aaron Gingrande and Cam Le are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Compounding pharmacy owner sentenced to 18 months and over $6 million in restitutionRead the Press Release
TULSA, Okla. - A former Jenks resident has been sentenced to 18 months for conspiracy to offer and pay health care kickbacks, announced U.S. Attorney Clint Johnson.
U.S. District Judge George K. Frizzell sentenced Christopher Parks, 62, to 18 months in federal prison, followed by two years of supervised release. Judge Frizzell further ordered Parks to pay $6,400,651.57 in restitution.
“Christopher Parks violated the trust of patients and abused Federal Health Care programs and private insurance companies to cheat taxpayers and pad his pockets,” said U.S Attorney Clint Johnson. “This office, together with our law enforcement partners, will continue to prosecute insurance and medical fraud.”
“This individual and his numerous co-conspirators used their medical credentials to exploit patient trust for financial gain,” said Jason E. Meadows, Special Agent in Charge of the United States Department of Health and Human Services Office of Inspector General (HHS-OIG). “Illegal kickback payments cloud medical judgment and cost taxpayers millions of dollars. HHS-OIG will continue to work with our law enforcement partners to hold accountable those who blatantly steal taxpayer money for their benefit.”
“The defendant exploited the health care industry by conspiring with others to pay and receive illegal kickbacks in order to enrich himself,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “This is not a victimless crime—health care fraud is a crime against all of us who contribute hard earned income and taxes into the system. The FBI will continue to work with our law enforcement partners to ensure those who willingly defraud the American people are held accountable.”
On June 27, 2023, Parks admitted in his plea agreement that he was one of the owners and/or operators of OK Compounding, LLC, and One Stop RX, LLC. Parks stated that between Nov. 2012 and June 2019 he paid physicians remuneration or kickbacks to induce referrals of their patients’ compounding prescriptions to one of the two pharmacies. Parks would pay the physicians through bank accounts he controlled knowing that some of the prescriptions were being paid for by government healthcare programs including Tricare, Medicare, the Federal Employees Compensation Act program, and the Civilian Health and Medical Program of the Department of Veterans Affairs.
Compounding prescriptions is a practice in which a pharmacist or physician combines, mixes, or alters ingredients of a drug or multiple drugs to create a medication that is tailored to the specific needs of a patient. These medications are prescribed when standard Food and Drug Administration-approved drugs are unsuitable for the patient. Compounded medications are also more expensive and reimbursed at a far higher rate by federal and private insurance companies than other forms of the same medication. Compounded drugs are not to be mixed or marketed in bulk.
The physicians were provided pre-printed prescription pads that listed compounding formula choices. Participating physicians checked a box with their preferred selection and then faxed it directly to the associated pharmacies, rather than writing a prescription tailored to the patient who could then take it to a pharmacy of their choice.
Parks disguised payments to physicians through various sham business arrangements. For example, physicians would enter into agreements with a pharmacy to serve as “medical directors.” However, the physicians provided no actual services as medical directors. Instead, physicians were paid kickbacks for writing prescriptions for medications whether their patients needed them or not and sending the prescriptions to Parks-affiliated pharmacies.
The Health & Human Services-Office of Inspector General, Defense Criminal Investigative Service and FBI investigated the case.
Assistant U.S. Attorney Melody Nelson prosecuted the case.
Colchester Man Sentenced to 44 Months for Possessing Firearm as a Convicted FelonRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on October 10, 2023, Dennis Martin, 42, of Colchester, Vermont, was sentenced to serve 44 months in prison for unlawfully possessing a firearm as a convicted felon. U.S. District Judge Christina Reiss also ordered Martin to serve a three-year term of supervised release.
Martin was convicted by a jury on February 9, 2023. The evidence at trial included a Snapchat video Martin sent to his mother-in-law on February 18, 2019, in which he brandished a firearm. According to trial testimony, Colchester Police, with the assistance of the Vermont State Police Tactical Services Unit, arrested Martin later in the day on February 18, 2019, from a vehicle near his Colchester residence. A search of the vehicle resulted in a seizure of a Ruger model LCP .380 caliber pistol with a laser sight. An analyst with the Bureau of Alcohol, Tobacco, Firearms, and Explosives testified that the firearm in the video appeared to be the same firearm from the Snapchat video and explained the similarities to the jury.
According to court records, on February 17, 2019, the day before Martin sent the Snapchat video, Martin’s then-wife reported ongoing domestic abuse perpetrated by Martin. Martin’s arrest on February 18, 2019, was for felony domestic assault and disorderly conduct with an electronic device based upon the Snapchat video. Martin was ultimately convicted for misdemeanor domestic assault and disorderly conduct by phone in Vermont Superior Court and sentenced to 363 to 364 days of jail.
The evidence at trial also showed that in 2015, Martin was convicted of a felony in Philadelphia, Pennsylvania, and sentenced to five years’ probation. According to court records, that felony was possession with the intent to distribute cocaine base. Martin testified at his Vermont federal trial that he did not know his prior conviction was a felony. Witnesses for the United States at trial included Martin’s probation officer and the prosecutor who prosecuted Martin in Pennsylvania, both of whom testified that Martin would have been made aware multiple times that his Pennsylvania conviction was for a felony. Evidence at trial also included paperwork Martin had signed that stated in multiple places that his offense was a felony.
At his sentencing on October 10, 2023, the Court found that Martin’s use of the firearm in the Snapchat video, in which he also made threatening statements, was conduct relevant to his unlawful firearm possession and constituted the federal felony of transmitting a threat in interstate commerce. The Court enhanced the sentence calculation accordingly under the U.S. Sentencing Guidelines. The Court also found that Martin obstructed justice by lying under oath at trial when he denied knowing his prior conviction was a felony and, as a result, applied an additional Sentencing Guidelines enhancement.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Colchester Police Department, and the Vermont State Police.
This case was prosecuted by Assistant U.S. Attorneys Jonathan Ophardt, Corinne Smith and Wendy Fuller. Mr. Martin was represented by Michelle Anderson Barth, Esq.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
Cincinnati man sentenced to prison for Covid relief fraudRead the Press Release
CINCINNATI– A man who filed for relief under the Paycheck Protection Program and fraudulently claimed that he was running a business during the time he was incarcerated was sentenced in U.S. District Court today to 12 months and one day in prison.
Willie Boyce, 42, pleaded guilty in April 2023 to one count of wire fraud. As part of his sentence, he will pay $41,040 in restitution.
According to court documents, Boyce was incarcerated in Hamilton County from March 2018 until September 2020, when he was released to a halfway house.
Boyce acknowledged that he applied electronically for two PPP loans in April 2021, claiming he owned a business that provided taxi and ridesharing services.
In his applications, Boyce fraudulently claimed a gross income of $98,500 for 2019 even though he was in prison for the entirety of that year. Boyce used his halfway house address as the business address and submitted a forged bank statement.
Boyce claimed the money was for payroll for his company, and received payments on April 20 and May 5, 2021, but withdrew or spent all the money by the end of May 2021, on non-business-related transactions including payments to Gucci, Louis Vuitton, Expedia, Hampton Inn and Delta Airlines.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the sentence imposed today by Senior U.S. District Judge Susan J. Dlott. The case was investigated by the Social Security Administration Office of Inspector General, in coordination with U.S. Postal Inspection Service, U.S. Secret Service, Ohio Bureau of Motor Vehicles Investigations and Hamilton County Prosecutor’s Office. Special Assistant U.S. Attorney Timothy Landry and Assistant U.S. Attorney Ebunoluwa Taiwo are representing the United States in this case.
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Chatham Man Pleads Guilty to Insider Trading SchemeRead the Press Release
BOSTON – A Chatham man pleaded guilty today in federal court in Boston to securities fraud for trading on inside information about a Massachusetts semiconductor company’s planned acquisition of a California semiconductor company.
Gregory Manning, 60, formerly of Needham, pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Jan. 3, 2024. Manning was charged in January 2020 along with co-defendants John Younis and David Forte.
In or around June 2016, Forte ¬obtained material non-public information from his brother who was a senior executive at Analog Devices, Inc. (Analog), a Norwood-based semiconductor company, about Analog’s planned acquisition of Linear Technology Corp. (Linear), a semiconductor company based in Milpitas, Calif. Forte passed the information to Manning, who purchased 3,000 shares of Linear stock in the week leading up to the public announcement of the acquisition on July 26, 2016. After the deal was announced, Manning sold all of the Linear shares he had purchased in the days leading up to the announcement for a profit and later paid Forte a kickback in appreciation for Forte’s stock tip.
In June 2022, Younis was sentenced to one month of home detention and two years of probation after pleading guilty to trading in Linear securities based on the material non-public information Forte provided to him. On July 20, 2023, Forte was convicted by a federal jury of one count of conspiracy to commit securities fraud and one count of securities fraud. He is scheduled to be sentenced on Oct. 24, 2023.
The charge of conspiracy to commit securities fraud provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of securities fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Securities & Exchange Commission provided valuable assistance. Assistant U.S. Attorneys David M. Holcomb and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.
CEO and Business Partner Charged with Massive Scheme to Defraud New York City’s Homeless Services ProgramsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the indictment of PETER WEISER and THOMAS BRANSKY for conspiring to defraud the City of New York (the “City”) of millions of dollars through a multifaceted scheme to corruptly profit from the provision of temporary housing and homeless services in New York City. BRANSKY was the Chief Executive Officer of Childrens Community Services, Inc. (“CCS”), a purported not-for-profit homeless services provider formed and initially funded in part by WEISER. BRANSKY, in turn, fraudulently steered lucrative service contracts ultimately paid for by the City to a group of entities owned and controlled by WEISER. WEISER and BRANSKY intentionally concealed WEISER’s involvement in the formation and operation of CCS and his ownership and control of certain entities that contracted with CCS, including by submitting false statements and documents to the City. WEISER and BRANSKY were arrested earlier today and will be presented before U.S. Magistrate Judge Valerie Figueredo in Manhattan federal court later today. The case is assigned to U.S. District Judge Vernon Broderick.
U.S. Attorney Damian Williams said: “As alleged, the defendants engaged in a yearslong scheme to pocket millions in taxpayer dollars through the systematic exploitation of City programs intended to meet the basic needs of some of the most vulnerable New Yorkers – homeless men, women, and children. Worse still, the defendants allegedly perpetrated this massive scheme under the guise of a not-for-profit organization named ‘Childrens Community Services.’ Thanks to the persistent efforts of the New York City Department of Investigation and the Special Agents and career prosecutors of my Office, these two men will face justice for their brazen graft.”
DOI Commissioner Jocelyn E. Strauber said: “These two defendants, as charged, used New York City’s need for providers of homeless services as an opportunity for fraud and personal profit. Through a nonprofit entity, Childrens Community Services, and related companies, the defendants caused the City to pay over $50 million that the City would not otherwise have paid to these entities, including in inflated prices and unreasonable mark-ups for goods and services, as alleged in the Indictment. As charged, the defendants concealed their scheme by straw ownership of companies, false statements, and fictitious bids. I am grateful for the meticulous, exhaustive work of DOI's investigators and of the U.S. Attorney's Office for the Southern District of New York, our partners in the fight to protect critical public resources from wrongdoers, and for the cooperation of the City Department of Social Services.”
According to allegations in the Indictment filed in Manhattan federal court:[1]
From at least in or about 2014 through at least in or about January 2020, THOMAS BRANSKY, who was the Chief Executive Officer of CCS, and his business partner, PETER WEISER, conspired to defraud the City agencies responsible for the administration of homeless services. Between in or about November 2014 and in or about February 2020, CCS was awarded 12 contracts with the City worth approximately $913 million. BRANSKY fraudulently steered lucrative service contracts with CCS — contracts ultimately paid for by the City — to a group of affiliated entities owned and controlled by WEISER (the “Weiser Entities”). To carry out their scheme, WEISER, BRANSKY, and other individuals who worked with them intentionally concealed WEISER’s involvement in the formation and operation of CCS and his ownership and control of certain of the Weiser Entities from the City, including by submitting false statements and documents to the City.
WEISER and his associates created the Weiser Entities to profit unlawfully from the City’s provision of homeless services by capturing downstream revenues arising from CCS’s massive contracts with the City. For the most part, the Weiser Entities were created for the sole purpose of providing goods and services to CCS. WEISER and BRANSKY attempted to disguise the Weiser Entities as legitimate providers of, among other things, IT services and hardware, security services, office and living furniture, and food services. In reality, and with few exceptions, the Weiser Entities were fly-by-night companies with no or few employees. In most cases, the Weiser Entities obtained goods and services from legitimate third-party vendors and then re-sold those goods and services to CCS at marked-up and, in some cases, grossly inflated prices. For example:
- Delta IT Solutions LLC (“Delta”): In or about December 2016, WEISER and his associates created the Weiser Entity Delta to sell IT services and hardware to CCS at inflated prices and in violation of the City’s conflict-of-interest policies. Internal Delta records reflect significant markups for goods that Delta purchased from vendors (such as Amazon and Staples) and resold to CCS. For example, an internal Delta pricing list from 2019 shows markups of up to 330% for items such as routers, printer cables, and surge protectors. Likewise, Delta charged a 331% markup for telecom services that Delta obtained from a third-party provider. These exorbitant markups were not disclosed to the City.
- AMX Distributors, LLC (“AMX”): WEISER and one of his associates created the Weiser Entity AMX to source and supply various consumer goods, including furniture, to CCS at inflated prices and in violation of the City’s conflict-of-interest policies. Through AMX, WEISER sold furniture and supplies to CCS, including, among other things, beds, mattresses, sheets, towels, pillows, sofas, cribs, microwaves, refrigerators, chairs, tables, and toiletries. WEISER sold these goods to CCS at unjustified markups of up to 309%.
- 511 Realty Management, LLC (“511 Realty”): CCS contracted with a Weiser Entity called 511 Realty to lease certain residential and commercial properties. However, 511 Realty provided no legitimate services. Instead, 511 Realty made monthly rent payments to third-party landlords on CCS’s behalf. For this, 511 Realty charged hefty markups to CCS and, as a result, the City. For example, CCS would make monthly payments to 511 Realty of approximately $24,000 for CCS’s office space in the Rockaway Offices. 511 Realty, in turn, would pay the landlord $17,500 monthly, representing a 37% markup, for essentially doing nothing more than writing a check; the markup increased to 46% by in or around 2019.
- Pronto Cleaning Services, LLC (“Pronto”): A Weiser Entity called Pronto Cleaning contracted with a legitimate janitorial services company to provide cleaning services at CCS offices and facilities. Pronto, which had no employees, resold those cleaning services to CCS at an approximately 56% markup, which was paid for by the City.
WEISER and BRANSKY, along with their coconspirators, attempted to conceal the scheme from the various City agencies and components responsible for the administration of homeless services. The defendants and their coconspirators solicited straw owners to appear on paper as the owners of the Weiser Entities when, in reality, WEISER owned, financed, and controlled each Weiser Entity. Moreover, WEISER, BRANSKY, and their coconspirators made and caused to be made false statements to City officials and personnel about, among other things, the ownership of the Weiser Entities, the interconnectedness of the Weiser Entities, the selection process through which CCS awarded contracts to the Weiser Entities, and the ability and experience of the Weiser Entities in providing quality goods and services.
Likewise, to evade and bypass the City’s fraud-detection and cost-saving policies and procedures, WEISER and BRANSKY, along with their coconspirators, caused CCS to award contracts to the Weiser Entities without using a competitive bidding process, conducting proper due diligence, completing necessary documentation, or obtaining requisite approvals. When questioned by the City, BRANSKY at times made and caused to be made false statements, including that the required documentation had been misplaced when, in fact, it had never been completed. At other times, WEISER created and/or solicited fictitious competing bids and caused those fictitious bids to be submitted to the City to secure contracts between CCS and the Weiser Entities and to conceal the inflated pricing.
WEISER, BRANSKY, and their coconspirators caused CCS — and, as a consequence, the City — to pay the Weiser Entities more than $50 million for goods and services. The City would not have authorized or made these payments had proper and truthful disclosures about the Weiser Entities been made. The fraudulent scheme harmed the City in numerous ways, including: (i) the City paid inflated prices resulting from the unnecessary insertion of middlemen (the Weiser Entities) between legitimate providers of goods and services and CCS; (ii) the City paid objectively unreasonable markups for certain goods and services; and (iii) CCS’s subversion of the mandatory bidding process and concealment of its conflicts of interest exposed the City to the risk — often realized — that the City would not obtain the best value for its money.
Through the scheme, WEISER collected more than $7 million in illicit profits, and BRANSKY earned more than $1.2 million in salary as the CEO of CCS.
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WEISER, 80, of Lawrence, New York, and BRANSKY, 47, of Woodmere, New York, are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud, which each carry a maximum sentence of 20 years in prison, and one count of embezzlement of government funds, which carries a maximum sentence of 10 years in prison. In addition, WEISER is charged with one count of money laundering, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of DOI and the Special Agents of the U.S. Attorney’s Office.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Chiuchiolo, Jilan Kamal, and Sagar K. Ravi are in charge of the prosecution.
The charges contained 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 Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Burlington County Man Admits Drug and Gun ChargesRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man today admitted his role in a scheme to possess and distribute methamphetamine and illegally possess firearms, U.S. Attorney Philip R. Sellinger announced.
Nicholas Layton, 43, of Mount Holly, New Jersey, pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court to an information charging him with one count each of conspiracy to distribute 50 grams or more of methamphetamine, possessing with intent to distribute 50 grams or more of methamphetamine and possession of firearms by a convicted felon.
According to documents filed in this case and statements made in Court:
In December of 2018, Layton and his conspirator were stopped in Crawford County, Arkansas, in possession of over three kilograms of methamphetamine. In July of 2019, Layton possessed two firearms; a rifle and a shotgun after having been previously convicted in the District of New Jersey of a drug trafficking offense. At the time of his arrest in August of 2019, Layton possessed approximately 200 grams of methamphetamine.
The drug trafficking counts to which Layton pleaded guilty carry a mandatory minimum penalty of 10 years in prison, a maximum of life in prison, and a fine of up to $10 million. The firearms offense to which Layton pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 15, 2024.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration (DEA), Camden Resident Office, under the direction of Special Agent in Charge Cheryl Ortiz in Newark; the DEA Fort Smith Post of Duty under the supervision of Special Agent in Charge Brad L. Byerley, New Orleans Field Division; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller, Newark Field Division; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Burlington County Prosecutor’s Office, under the direction of Prosecutor LaChia L. Bradshaw; and officers of the Arkansas State Police, under the direction of Col. Mike Hagar, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Michelle S. Gasparian of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark.
layton.information.pdfBozeman Man Admits Buying Firearms in Montana, Illegally Exporting Them to MexicoRead the Press Release
MISSOULA — A Bozeman man accused of buying firearms in Montana and selling them to individuals in Mexico admitted today to illegally exporting guns, said U.S. Attorney Jesse Laslovich.
Cristyan Jose Gonzalez-Carrillo, 37, pleaded guilty to illegal export before U.S. Magistrate Judge Kathleen L. DeSoto. Gonzalez-Carrillo faces a maximum of 10 years in prison, a $250,000 fine, and three years of supervised release at his sentencing set for Feb. 15, 2024 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Gonzalez-Carrillo was detained pending further proceedings.
“Every day across America, the Department of Justice is fighting the twin epidemics of gun violence and drug poisoning that shatter our communities,” said Deputy Attorney General Lisa O. Monaco. “To win that battle, we must root out and prosecute those who traffic illegal firearms to Mexico – where weapons end up in the hands of violent cartels that send deadly drugs back to the United States. Today’s guilty plea represents another step forward, but also a sobering reminder that the fight against cross-border firearms-trafficking is a nationwide challenge.”
“Buying guns in Montana and taking them to Mexico to sell is illegal. Fighting gun violence remains a top priority for our office and as today’s hearing showed, we will investigate and prosecute anyone who violates federal firearms laws,” U.S. Attorney Laslovich said.
“Preventing unlawful firearms trafficking is a top priority of the ATF,” said ATF Director Steven Dettelbach. “Whether the unlawful trafficking is destined for a gang in the United States or a cartel in Mexico, we will work with our partners to stop it and hold accountable those who violate our nation’s firearms laws.”
The government alleged in court documents that an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) determined that from February 2020 to May 2020, Gonzalez-Carrillo purchased approximately 31 handguns. Law enforcement executed a search warrant at Gonzalez-Carrillo’s residence in July 2020 and recovered firearms and ammunition, including semi-automatic handguns and AR style rifles. Receipts seized during the search were from multiple stores in Montana for the purchase of firearms during that period. In addition, the investigation determined that Gonzalez-Carrillo’s vehicle plate records would demonstrate multiple border crossings at San Ysidro, California, from April 2020 to June 2020. Investigators also learned that Gonzalez-Carrillo purchased and advertised firearms for sale on the platform WhatsApp, and sold firearms to individuals in Mexico.
Assistant U.S. Attorney Tara J. Elliott is prosecuting the case. ATF conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Baton Rouge Man Sentenced for Assaulting and Threatening Federal OfficersRead the Press Release
NEW ORLEANS, LOUISIANA – KESHAWN KELLY, age 20, a resident of Baton Rouge, Louisiana, was sentenced on October 3, 2023 by U.S. District Judge Greg G. Guidry to twenty (20) months imprisonment, three (3) years of supervised release, and a $125 mandatory special assessment fee, announced U.S. Attorney Duane A. Evans. KELLY previously pleaded guilty to a two-count indictment charging him with influencing federal officials by threat, in violation of Title 18, United States Code, Section 115(a)(1)(B), and assaulting, resisting, or impeding federal officers, in violation of Title 18, United States Code, Section 111(a)(1).
According to court documents, on February 15, 2022, KELLY was involved in a 21-minute standoff with police in the emergency department parking lot at the New Orleans VA Medical Center. During the standoff, KELLY possessed a fully loaded AR-15 rifle with a round in the chamber and the selector switch set to the semi-automatic firing position. KELLY, who continuously refused to get out of the car with his hands up, made various threats to shoot and otherwise assault the officers for the duration of the standoff.
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 United States Department of Veteran’s Affairs Police. The prosecution was handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Baltimore Felon Sentenced to 33 Months in Federal Prison for Illegal Possession of Two Stolen FirearmsRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Tavion Thomas, age 23, of Baltimore, Maryland, to 33 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Richard Worley of the Baltimore Police Department; and Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police.
“Removing from the community—by any legal means necessary—those most likely to commit gun violence, guides the accountability arm of our work,” said United States Attorney Erek L. Barron. “As a convicted violent offender, Mr. Thomas knew that he was not allowed to have a gun—if you are caught illegally carrying a gun, you will be held accountable.”
According to his guilty plea, on September 10, 2022, Baltimore Police officers were advised that Tavion Thomas had an open arrest warrant in Baltimore City for a violent crime. Officers went to the 3200 block of Belair Road in Baltimore, an area they knew Thomas was known to frequent, and located Thomas standing with a crowd of people. Thomas was arrested and the backpack he was wearing was searched. From the backpack, officers recovered a 9mm pistol loaded with one 9mm round in the chamber and one magazine containing 14 9mm rounds; a magazine loaded with 10 9mm rounds; eight mason jars containing a total of 1,696 grams of suspected marijuana; four plastic bags containing 28 grams of suspected marijuana; five plastic containers containing 100 grams of suspected marijuana; and one metal grinder with marijuana residue. Officers also searched Thomas and recovered from his waistband a 9mm pistol loaded with one 9mm round in the chamber and a magazine loaded with 10 9mm rounds. Thomas has a previous felony conviction and knew that as a result, he was prohibited from possessing a firearm and ammunition.
Investigation also revealed that the 9mm pistols Thomas possessed were reported stolen from Bel Air, Maryland and from Atlanta, Georgia.
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.
United States Attorney Erek L. Barron commended the ATF, the Baltimore Police Department and the Maryland State Police for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Michael F. Aubin, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Armed Career Criminal Sentenced to More Than 15 Years for Possessing A Firearm and AmmunitionRead the Press Release
Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Deterrio M. Young (29, Tampa) to 15 years and 10 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Young to forfeit the firearm and ammunition. Young had pleaded guilty on February 2, 2023.
According to court documents, Young had previously been convicted of battery on a law enforcement officer, obstructing or opposing an officer with violence, and aggravated assault. On July 28, 2021, law enforcement received a call that Young had recently been in possession of a firearm. When law enforcement arrived at the scene, Young fled. After a short pursuit, Young was detained, and officers found a magazine in his possession with seven rounds of ammunition. Officers also located the firearm, and DNA from the firearm was later determined to be a match for Young.
As a previously convicted felon, Young is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Michael R. Kenneth and Callan Albritton.
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.
Arizona Man Sentenced to 30 Years in Prison for Attempted Murder of a Federal Task Force OfficerRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Robert Benjamin Nelson was sentenced to 30 years in prison. Nelson, 31, of Scottsdale, Arizona, pled guilty to attempted murder of a federal task force officer and discharging a firearm during a federal crime of violence on March 22, 2023, following a mistrial on January 17, 2023.
According to court documents, on Sept. 12, 2020, a New Mexico State Police Officer, serving as a Task Force Officer with U.S. Homeland Security Investigations (HSI), initiated a traffic enforcement stop on Nelson’s vehicle for following another vehicle too closely. As the officer approached Nelson’s vehicle from the passenger side, Nelson raised and fired a .22 caliber revolver three times at the officer through the window. The muzzle blast and initial round from the revolver shattered the passenger window, sending shards of glass into the officer’s face and eyes. The officer raised her hands to shield her face, and the second and third bullets struck her in the hands, causing serious and permanent injury to one of her eyes and both of her hands. The officer fell to the ground, but immediately got back up and returned fire as the truck sped off.
The officer pursued and caught up with Nelson, still traveling west on I-40, and pulled him over again. The officer observed Nelson retrieve a rifle from the floorboard of his vehicle and waited for back up to arrive. Officers from the Laguna Pueblo arrived on scene and Nelson was arrested without further incident.
“Today, bravery prevailed over cowardice and truth over irrational hate,” said U.S. Attorney Uballez. “Federal law enforcement officers work every day to make our lives safer. When their lives are put at risk by someone who trained himself to fear police through fantastical internet videos, we will serve decisive justice to protect our protectors. My thanks to our team of prosecutors and federal law enforcement agents who investigated this case, and to the victim whose bravery, professionalism, and calm while under fire made this result possible.”
"These types of shootings are brazened, violent acts, absolutely without justification and a threat to our entire community," said FBI Special Agent in Charge Raul Bujanda. "An attack on a federal Task Force Officer is a federal crime with serious consequences. Today’s sentencing reflects the FBI’s unwavering commitment to ensure that all those responsible for violence crimes against law enforcement officers are brought to justice."
Upon his release from prison, Nelson will be subject to 4 years of supervised release.
The FBI Albuquerque Field Office investigated this case in conjunction with the New Mexico State Police and the Albuquerque Multiagency Officer Involved Shooting Team. Assistant U.S. Attorneys Paul Mysliwiec and Nicholas Mote prosecuted the case.
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Annual Awards Ceremony Held to Recognize Outstanding Performances by Western Pennsylvania Law Enforcement and ProsecutorsRead the Press Release
PITTSBURGH - The Law Enforcement Agency Directors (LEAD) of Western Pennsylvania recognized dozens of area law enforcement officers and prosecutors during its 25th Annual LEAD Awards Ceremony on Thursday, October 5, 2023, announced United States Attorney Eric G. Olshan. Comprising the Western Pennsylvania heads of federal, state, and local law enforcement agencies, LEAD bestows awards annually as a way to recognize outstanding work by law enforcement agents and officers, as well as prosecutors.
Notable among the LEAD Awards presented on Thursday were:
• The Courage Under Hostile Fire Award was presented to Pittsburgh Bureau of Police Officers Anthony Burke, Jonathan Craig, Jeffrey Garris, Jeremy Hurley, Timothy Matson, Daniel Mead, Stephen Mescan, Andrew Miller, John Persin, Joshua Robey, Michael Saldutte, Michael Smidga, and Clint Thimons for their response at the Tree of Life Synagogue in Squirrel Hill on October 27, 2018. Each of these Pittsburgh Bureau of Police Officers was recognized for exhibiting exceptional courage and professionalism, and their acts of bravery unquestionably prevented further bloodshed.
• The Lifetime Service Award was presented to (Retired) Special Agent Patrick M. (Rick) McGlennon for his outstanding service with the Federal Bureau of Investigation (FBI). Retired Special Agent McGlennon began his employment in law enforcement as a police officer for the Borough of Wilkinsburg, where he worked for four years and obtained the rank of Detective. In 1984, he was hired by the FBI, where he served as a Special Agent for over 33 years. Agent McGlennon served as the primary case agent on the investigation and prosecution of Christina Korbe for the homicide of FBI Special Agent Samuel Hicks in November 2008 during the execution of an arrest warrant for Korbe’s husband. Since retiring from the FBI in December 2017, Agent McGlennon has continued his strong commitment to public safety and joined the National Threat Operations center at the FBI’s Criminal Justice Information Services Division (CJIS).
• An individual LEAD award was presented to Assistant U.S. Attorney Paul Sellers of the Erie Branch Office of the U.S. Attorney’s Office. Mr. Sellers led the investigation of the 4Nation gang which distributed large quantities of drugs and committed numerous acts of violence on the East Side of Erie since 2012. The grand jury returned an indictment against 58 defendants, and the FBI and other law enforcement agencies seized 119.2 pounds of methamphetamine, 180,018 fentanyl pills (19.8 kilograms), 5.22 kilograms of cocaine, 4.95kilograms of fentanyl powder, 709.59 grams of fentanyl analogues, several pounds of marijuana, 33 guns, and $235,151 in cash. This was the first RICO (Racketeer Influenced and Corrupt Organizations Act) brought in the Erie subdivision of the Court.
• Supervisory Deputy United States Marshal Jeremy DeLano also received an individual LEAD award. Deputy DeLano played a leading role in the capture of Michael Burham, who escaped from the Warren County Jail on July 6, 2023. Burham was awaiting trial on kidnapping charges, and was also a suspect in the rape and murder of his ex-girlfriend. Deputy DeLano assembled a large team of Deputy U.S. Marshals and Task Force Officers, utilized the latest technological tools, and obtained an Unlawful Flight to Avoid Apprehension federal arrest warrant, all of which led to the capture of Burham on July 15, 2023.
LEAD is composed of the following law enforcement agencies and their representatives: Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Investigation; U.S. Attorney's Office - Western District of Pennsylvania; U.S. Immigration and Customs Enforcement/Homeland Security Investigations; IRS - Criminal Investigation; U.S. Department of Homeland Security, Transportation Security Administration; U.S. Department of Defense - Defense Criminal Investigative Service; U.S. Department of Housing and Urban Development; U.S. Marshals Service; U.S. Postal Service, Office of Inspector General (OIG); U.S. Postal Inspection Service; U.S. Probation & Pretrial Services; United States Secret Service; U.S. Social Security Administration - OIG; U.S. Department of State – Diplomatic Security Service; U.S. Department of Transportation, Federal Air Marshal Service; the U.S. Department of Veterans Administration - OIG; U.S. Department of Labor - OIG; U.S. Department of Agriculture - OIG; U.S. Department of Homeland Security – Federal Protective Service; U.S. Food and Drug Administration – Office of Criminal Investigations; Pennsylvania Office of Attorney General; Pennsylvania State Police; Pennsylvania Board of Probation and Parole; Western Pennsylvania Chiefs of Police Association; Allegheny County Police Department; Allegheny County Sheriff=s Office; Allegheny County District Attorney=s Office; Allegheny County Chiefs of Police Association; Washington County District Attorney’s Office; Westmoreland County District Attorney’s Office; and the Pittsburgh Bureau of Police.
10 October 2023
Westchester Sex Offender Sentenced to 25 Years for Attempted Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Dean Picariello, age 33, of Valhalla, New York, was sentenced today to 300 months (25 years) in prison for attempting to entice a minor to engage in unlawful sexual activity and committing a felony offense involving a minor while required to register as a sex offender.
United States Attorney Carla B. Freedman and Alfred A. Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his earlier guilty plea, Picariello admitted that on November 4, 2020, he initiated a conversation with someone he believed to be a 12-year-old girl in a teen chat group on a popular social media messaging application. Picariello engaged in sexually explicit conversation with the person, graphically describing the sex acts he would perform on the 12-year-old child when they met in person. In late November, Picariello began exchanging sexually explicit text messages with a second person posing as the 12-year-old girl’s 11-year-old cousin. On December 3, 2020, Picariello arranged to travel from Valhalla to Menands, to meet and have sex with the pre-teen cousins. When Picariello arrived at the prearranged meeting location in Menands, he was encountered by law enforcement officers and arrested.
Picariello has two prior New York State convictions for rape in the third degree, each involving a victim less than 17 years old.
United States District Judge Glenn T. Suddaby also imposed a life term of post-release supervision and ordered Picariello to forfeit the Samsung cellular phone he used to commit his crimes. Picariello will also be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI Albany’s Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Colonie Police Department. Assistant United States Attorney Allen J. Vickey and Rachel Williams prosecuted the case as a 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.
Undocumented alien and former Marietta teaching assistant have been sentenced to prison for firearms traffickingRead the Press Release
ATLANTA – A previously deported undocumented alien with a violent criminal history, and a former school paraprofessional who fatally abandoned a dog in a hot car while straw purchasing firearms, have been sentenced to federal prison for their roles in trafficking guns later used in shootings.
“Firearms traffickers fuel gun violence in our communities placing citizens at risk of injury and death,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to partnering with our federal, state, and local law enforcement partners to pursue and prosecute criminals whose disregard for life contributes to the illegal flow of guns onto our streets.”
“Although we are very pleased with the success of this operation, unfortunately this operation highlights the persistence of illegal firearms trafficking and demonstrates that this type of crime is real, extant, and must be continuously battled,” said ATF Assistant Special Agent in Charge Alicia Jones. “ATF will continue to work alongside our federal, state and local partners in furtherance of reducing gun crime.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Between February 2022 and June 2022, DeAndre Cannon purchased nearly four dozen firearms on behalf of Conroy Samuels, a convicted felon and undocumented alien, who was living under the assumed identity of “Justin Sheffield.” Samuels used this alias after he served a prison term and was deported from the United States following a conviction for attempted murder.
Cannon, to perpetrate the firearms trafficking scheme with Samuels, falsely represented to federally licensed firearms dealers in the metro-Atlanta area that he was the actual purchaser of the firearms even though he was buying the guns for Samuels and with Samuels’s money. In this way, Cannon sometimes illegally purchased up to 17 firearms in a week. After he received the guns from Cannon, Samuels would distribute them to others. At least two of the firearms that passed from Cannon to Samuels were recovered in Connecticut and linked to multiple shooting incidents in that state.
Cannon and Samuels’s crime spree ended on June 15, 2022, after ATF special agents saw Cannon receive money from Samuels and enter and exit a Jonesboro, Georgia, pawn shop. Although the temperature that day exceeded 95 degrees, Cannon left a dog inside his car for approximately an hour and a half while he straw purchased guns at the pawn shop. When agents encountered Cannon later, they saw that Cannon’s pet was suffering from extreme heat stress. The dog later died despite receiving emergency treatment from Clayton County animal control officers.
On August 2, 2023, Conroy Samuels, also known as “Justin Sheffield,” 50, of Kingston, Jamaica, was sentenced by U.S. District Judge Eleanor L. Ross to four years, nine months in prison to be followed by three years of supervised release. Samuels was convicted of possession of a firearm by a prohibited person, conspiracy to make false statements to a federally licensed firearms dealer, and reentry after deportation after he pleaded guilty on April 20, 2023.
On September 20, 2023, DeAndre Cannon, 34, of Woodstock, Georgia, was sentenced by Judge Ross to four years, two months in prison to be followed by three years of supervised release. Cannon was convicted of conspiracy to make false statements to a federally licensed firearms dealer after he pleaded guilty on June 1, 2023.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Clayton County Police Department.
Assistant U.S. Attorneys Leanne M. Marek and Theodore S. Hertzberg prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Navy Service Member Pleads Guilty to Transmitting Sensitive U.S. Military Information to Chinese Intelligence OfficerRead the Press Release
A U.S. Navy service member pleaded guilty today to federal felony offenses and admitted he transmitted sensitive U.S. military information to an intelligence officer from the People’s Republic of China (PRC) in exchange for bribery payments.
Petty Officer Wenheng Zhao, 26, aka Thomas Zhao, of Monterey Park, California, pleaded guilty to conspiring with the intelligence officer and receiving a bribe.
Zhao, who worked at Naval Base Ventura County in Port Hueneme and held a U.S. security clearance, admitted he engaged in a corrupt scheme to collect and transmit sensitive U.S. military information to the intelligence officer in violation of his official duties.
“The intelligence services of the People’s Republic of China actively target clearance holders across the military, seeking to entice them with money to provide sensitive government information,” said Assistant Attorney General for National Security Matthew G. Olsen. “When contacted by his co-conspirator, rather than reporting it to the Navy, the defendant chose greed over protecting the national security of the United States. He is now being held accountable for his crimes. To others tempted to put personal profit ahead of patriotic duty, know that we are committed to identifying you and bringing you to justice.”
“Protecting our country’s national security is of the utmost importance,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Zhao’s guilty plea is an acknowledgement of the betrayal in selling sensitive military information to the Government of China. The FBI reminds all government officials to remain vigilant in reporting potential recruitment efforts by foreign actors, and we remain committed to standing with our partners to protect the U.S. from threats to our national security.”
Between August 2021 and at least May 2023, Zhao admitted receiving at least $14,866 in at least 14 separate bribes from the intelligence officer. In exchange for the illicit payments, Zhao surreptitiously collected and transmitted to the intelligence officer sensitive, non-public information regarding U.S. Navy operational security, military trainings and exercises and critical infrastructure. Zhao admitted he entered restricted military and naval installations to collect and record this information.
Zhao specifically admitted to transmitting plans for a large-scale maritime training exercise in the Pacific theatre, operational orders, and electrical diagrams and blueprints for a Ground/Air Task Oriented Radar system located in Okinawa, Japan.
Zhao further admitted to using sophisticated encrypted communication methods to transmit the information, destroying evidence and concealing his relationship with the intelligence officer. Zhao’s conduct violated his official duties to protect such information and the oath he swore to protect the United States.
“Officer Zhao betrayed his country and the men and women of the U.S. Navy by accepting bribes from a foreign adversary,” said U.S. Attorney Martin Estrada for the Central District of California. “While he and the PRC officer he served took great pains to conceal their corrupt scheme, investigators were vigilant in uncovering this shameful plot. Today’s resolution, requiring Zhao to plead guilty to all charges against him, shows that we will act swiftly and decisively to protect our nation from those who seek to undermine our security.”
“The Naval Criminal Investigative Service (NCIS) would like to once again thank our partners at the FBI and Department of Justice for their continued assistance in bringing this case to a quick resolution,” said Acting Special Agent in Charge Angel Cruz of the NCIS Office of Special Projects. “The swift action by the Department of Justice in prosecuting this case should serve as a warning to anyone who attempt to compromise the Department of the Navy’s sensitive information or the security of our warfighters. If you or someone you know has knowledge of a potential compromise of sensitive military information, please contact your nearest NCIS or FBI office.”
Zhao pleaded guilty before U.S. District Judge R. Gary Klausner. Sentencing is scheduled for Jan. 8, 2024. As a result of today’s guilty plea, Zhao faces a statutory maximum penalty of 20 years in prison – five years for the conspiracy count and 15 years for the bribery charge. Zhao has been in custody since his arrest on Aug. 3.
The FBI Los Angeles Field Office’s Counterintelligence and Cyber Division and NCIS conducted the investigation. IRS-Criminal Investigation provided substantial assistance.
Assistant U.S. Attorneys Annamartine Salick, Sarah Gerdes, Christine Ro and Kathrynne Seiden for the Central District of California and Trial Attorney Adam Barry of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance from Ryan Waters of the Asset Forfeiture Section.
U.S. Navy Sailor Pleads Guilty to Transmitting Sensitive U.S. Military Information to Chinese Intelligence OfficerRead the Press Release
LOS ANGELES – A United States Navy service member pleaded guilty today to federal felony offenses and admitted he transmitted sensitive U.S. military information to an intelligence officer from the People’s Republic of China in exchange for bribery payments.
Petty Officer Wenheng Zhao, 26, also known as Thomas Zhao, of Monterey Park, pleaded guilty to one count of conspiring with the intelligence officer and one count of receiving a bribe.
Zhao, who worked at Naval Base Ventura County in Port Hueneme and held a U.S. security clearance, admitted he engaged in a corrupt scheme to collect and transmit sensitive U.S. military information to the intelligence officer in violation of his official duties.
Between August 2021 and at least May 2023, Zhao admitted receiving at least $14,866 in at least 14 separate bribe payments from the intelligence officer. In exchange for the illicit payments, Zhao surreptitiously collected and transmitted to the intelligence officer sensitive, non-public information regarding U.S. Navy operational security, military trainings and exercises, and critical infrastructure. Zhao admitted he entered restricted military and naval installations to collect and record this information.
Zhao specifically admitted to transmitting plans for a large-scale maritime training exercise in the Pacific theatre, operational orders, and electrical diagrams and blueprints for a Ground/Air Task Oriented Radar system located in Okinawa, Japan.
Zhao further admitted to using sophisticated encrypted communication methods to transmit the information, destroying evidence, and concealing his relationship with the intelligence officer. Zhao’s conduct violated his official duties to protect such information and the oath he swore to protect the United States.
“Officer Zhao betrayed his country and the men and women of the U.S. Navy by accepting bribes from a foreign adversary,” said United States Attorney Martin Estrada. “While he and the PRC officer he served took great pains to conceal their corrupt scheme, investigators were vigilant in uncovering this shameful plot. Today’s resolution, requiring Zhao to plead guilty to all charges against him, shows that we will act swiftly and decisively to protect our nation from those who seek to undermine our security.”
“The intelligence services of the People’s Republic of China actively target clearance holders across the military, seeking to entice them with money to provide sensitive government information,” said Assistant Attorney General for National Security Matthew G. Olsen. “When contacted by his coconspirator, rather than reporting it to the Navy, the Defendant chose greed over protecting the national security of the United States. He is now being held accountable for his crimes. To others tempted to put personal profit ahead of patriotic duty, know that we are committed to identifying you and bringing you to justice.”
“Mr. Zhao’s admission makes it clear that he abandoned the oath he swore to uphold by providing sensitive information to a U.S. adversary in exchange for cash,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. "Zhao put his fellow servicemen at risk when he yielded to overtures from the Chinese government, a nation actively targeting Americans who have access to state secrets. I’m proud of the strong partnerships and hard work that resulted in today’s successful outcome.”
“NCIS would like to once again thank our partners at the FBI and Department of Justice for their continued assistance in bringing this case to a quick resolution,” said A.D. Cruz Jr., Acting Special Agent in Charge of Naval Criminal Investigative Service, Office of Special Projects. The swift action by the Department of Justice in prosecuting this case should serve as a warning to anyone who willingly or through willful negligence attempt to compromise the Department of the Navy’s sensitive information or the security of our warfighters. No matter how long it takes, we will find you and hold you to account. To those still working to assist our adversaries, find your nearest NCIS or FBI office and cooperate before we come for you.”
Zhao pleaded guilty before United States District Judge R. Gary Klausner, who scheduled a January 8, 2024, sentencing hearing. As a result of today’s guilty pleas, Zhao faces a statutory maximum sentence of 20 years in federal prison – five years for the conspiracy count and 15 years for the bribery charge. Zhao has been in custody since his arrest on August 3.
The FBI’s Counterintelligence and Cyber Division of the Los Angeles Field Office and NCIS conducted the investigation. IRS Criminal Investigation provided substantial assistance.
Assistant United States Attorneys Annamartine Salick, Sarah Gerdes, Christine Ro and Kathrynne Seiden of the Terrorism and Export Crimes Section are prosecuting this case, with assistance from Ryan Waters of the Asset Forfeiture and Recovery Section. The Counterintelligence and Export Control Section at the Department of Justice is providing substantial assistance.