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4 October 2023
Boston Man Previously Convicted of Sex Trafficking Pleads Guilty to Witness IntimidationRead the Press Release
BOSTON – A Boston man pleaded guilty today to attempting to prevent a victim, to whom he exposed himself, from testifying against him in a federal proceeding. Defendant was on federal supervised release for sex trafficking at the time of the offense.
Mark Pinnock, 32, pleaded guilty to one count of witness intimidation. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 5, 2023. Pinnock was charged in July 2023.
In 2014, Pinnock was sentenced to eight years in prison for a sex trafficking offense and in 2022, was released and under federal supervision while working as an Amazon driver. In July 2022, while on supervised release for the 2014 sex trafficking conviction, a victim reported to local law enforcement that Pinnock exposed his penis to her while delivering a package to the condominium complex where the victim worked as a custodian. As a result, the U.S. Probation Office sought to revoke Pinnock’s term of supervised release and the Court scheduled a hearing to adjudicate Pinnock’s alleged offense.
One week before the hearing, Pinnock sent a co-conspirator to the condominium complex on his behalf. The co-conspirator told the victim not to go to Court and stood with his hand in his pocket as if he had something in it. Pinnock also used an encrypted messaging application to send an anonymous message to the security officer at the complex to “let the cleaning lady know” she would be arrested by immigration officials if she were to go to court. Finally, Pinnock placed three separate phone calls to immigration officials in an attempt to have the victim detained for being unlawfully present in the United States. In the calls to immigration officials, Pinnock falsely claimed that he had heard the victim was gang-affiliated, among other things.
The charge of witness intimidation provides a sentence of up to 20 years in prison, 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 and Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England made the announcement today. The Brockton Police provided valuable assistance in the investigation. Assistant U.S. Attorney Mackenzie A. Queenin of the Criminal Division is prosecuting the case.
Benton Harbor Man Indicted for Possessing Firearms as A FelonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal grand jury returned an indictment charging Terrence Terrial Izear Turner, 28, of Benton Harbor, with two counts of being a convicted felon in possession of firearms. The indictment alleges that Turner possessed a Taurus Spectrum pistol in July and a loaded Glock handgun in August 2023. The maximum possible penalty for each count is 15 years in prison.
“We are serious about stopping the proliferation of illegal firearms, especially in West Michigan communities combatting high rates of violent crime, such as Benton Harbor, said U.S. Attorney Mark Totten. “We will use all the tools at our disposal to hold the offenders disrupting local communities accountable for their illegal gun possession.”
“I am extremely proud of the outstanding work by the Benton Harbor Safe Streets Task Force for successfully investigating the alleged crimes committed by Mr. Turner,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI is committed to leveraging our law enforcement partnerships to ensure Michigan residents are safe in our communities.”
“The MSP is proud to work with our local and federal partners to target the most violent offenders in and around Benton Harbor,” said Michigan State Police Spl/Lt. DuWayne Robinson. “We work diligently to combat violence and these indictments prove we are dedicated to making our streets safer for all Michiganders.”
The case was investigated by the Federal Bureau of Investigation (FBI) Benton Harbor Safe Streets Task Force, which is a joint local and federal investigative team that includes the Benton Harbor Department of Public Safety, Michigan State Police, Benton Charter Township Police Department, Berrien County Sheriff’s Office, Pokagon Band Tribal Police Department, and the FBI.
This case is being prosecuted by Assistant U.S. Attorney Lauren F. Biksacky as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities in order to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.
A copy of the indictment is attached. The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
Turner Indictment###
Benton Harbor Man Indicted for Possessing A Firearm as A FelonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal grand jury returned an indictment charging Shamonte Demorquez Buchanan, 25, of Benton Harbor, with possessing a firearm as a convicted felon. Specifically, the indictment alleges that Buchanan had a loaded Glock handgun. The maximum possible penalty for felon in possession of a firearm is 15 years in prison.
“Felons illegally possessing firearms pose a great danger to our communities in West Michigan, especially in areas where gun violence is inflicted on community members at the highest rates,” said U.S. Attorney Mark Totten. “Our office and our law enforcement partners are vigilant, and we will continue these efforts to ensure that the community can feel safe.”
“The gun crimes alleged to have been committed by Mr. Buchanan have no place in our community,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “I would like to thank the Benton Harbor Safe Streets Task Force for their outstanding work disrupting violent criminal activities and ensuring a safer Michigan."
“The MSP is proud to work with our local and federal partners to target the most violent offenders in and around Benton Harbor,” said Michigan State Police Spl/Lt. DuWayne Robinson. “We work diligently to combat violence and these indictments prove we are dedicated to making our streets safer for all Michiganders.”
The case was investigated by the Federal Bureau of Investigation (FBI) Benton Harbor Safe Streets Task Force, which is a joint local and federal investigative team that includes the Benton Harbor Department of Public Safety, Michigan State Police, Benton Charter Township Police Department, Berrien County Sheriff’s Office, Pokagon Band Tribal Police Department, and the FBI.
This case is being prosecuted by Assistant U.S. Attorney Lauren F. Biksacky as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities in order to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.
A copy of the indictment is attached. The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
Buchanan Indictment
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Bennington Man Sentenced for Distributing Child PornographyRead the Press Release
Acting United States Attorney Susan Lehr announced that Chad Moseman, 37, of Bennington, Nebraska, was sentenced today in federal court in Omaha for distribution and receipt of child pornography. United States District Judge Brian C. Buescher sentenced Moseman to 100 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Moseman will serve 5 years of supervised release.
In July 2021, while conducting an undercover peer-to-peer child pornography investigation, an FBI task force officer in Omaha observed an IP address advertising child pornography to share. The officer confirmed the files advertised child pornography. The IP address resolved to Moseman’s residence in Bennington. The FBI executed a search warrant at Moseman’s residence and seized his electronic devices. A forensic examination showed peer-to-peer software had been utilized on Moseman’s computer. Moseman’s computer also contained images of child pornography captured in thumbnail cache as well as other digital artifacts showing child pornography had been accessed and deleted on the computer. Digital evidence, including text messages, further showed Moseman was at home at the time of the online activity.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force.
Attorney General Merrick B. Garland Statement on Transfer of Forfeited Munitions to UkraineRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the transfer of approximately 1.1 million 7.62mm rounds to the Ukrainian armed forces. The U.S. Government obtained ownership of these munitions on July 20, through the Justice Department’s civil forfeiture claims against Iran’s Islamic Revolutionary Guard Corps (IRGC). The munitions were originally seized by U.S. Central Command naval forces from the transiting stateless dhow MARWAN 1, on Dec. 9, 2022. The munitions were being transferred from the IRGC to the Houthis in Yemen in violation of the United Nations Security Council Resolution 2216.
“With this weapons transfer, the Justice Department's forfeiture actions against one authoritarian regime are now directly supporting the Ukrainian people's fight against another authoritarian regime. We will continue to use every legal authority at our disposal to support Ukraine in their fight for freedom, democracy, and the rule of law.”
Anchorage Man Guilty on Drug Trafficking, Firearm ChargesRead the Press Release
ANCHORAGE, Alaska – A federal jury convicted an Anchorage Man on two felony drug counts and two firearm charges after a five-day trial.
Jerod Alexander, 33, was found guilty of possessing and distributing large amounts of illegal drugs and possessing a firearm in furtherance of a drug trafficking crime on Oct. 2, 2023. Alexander was also found guilty of being a felon in possession of a firearm on Oct. 4.
According to court documents and evidence presented at trial, Alexander sold 25 grams of heroin to another person during an undercover law enforcement operation in March 2021. Agents received information that the defendant, who was on supervised release in a prior felony drug case, was using short-term vacation rentals to evade law enforcement. Roughly a month later, law enforcement found Alexander in a vacation rental with over 800 grams of a heroin and fentanyl mixture, over 60 grams of heroin, over $13,000 in cash, four firearms and hundreds of rounds of ammunition.
U.S. District Judge Sharon Gleason presided over the trial. A sentencing hearing is scheduled for January 26, 2024. Alexander faces a mandatory minimum penalty of 30 years in prison. He will be held in the custody of the U.S. Marshals Service pending his sentence.
U.S. Attorney S. Lane Tucker of the District of Alaska and Special Agent in Charge Antony Jung of the FBI Anchorage Field Office made the announcement.
The FBI Anchorage Field Office and the Anchorage Police Department investigated the case.
Assistant U.S. Attorneys Jennifer Ivers and Carly Vosacek prosecuted the case.
This case is part of Alaska’s High Intensity Drug Trafficking Area (HIDTA). HIDTA was established in 2018 to enhance and coordinate efforts among local, state and federal law enforcement agencies, providing equipment, technology and additional resources to combat drug trafficking and its harmful consequences in critical regions of Alaska.
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27 Defendants Charged with Federal Crimes Targeting the United States Postal ServiceRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Daniel B. Brubaker, the Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment charging ROBERT DIAZ with robbing two United States Postal Service (“USPS”) carriers of postal keys and, along with Matthew Modafferi, the Special Agent in Charge of the Northeast Area Field Office of the USPS, Office of Inspector General (“USPS-OIG”), James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), also announced that 26 additional defendants have been charged in the past six months with federal crimes targeting the USPS and involving property stolen from the USPS as part of a multi-agency initiative to increase federal enforcement against perpetrators of mail-related robberies, frauds, and thefts.
U.S. Attorney Damian Williams said: “My Office is committed to working with our law enforcement partners to protect the safety of USPS employees and the integrity of the United States mail. The indictment against Robert Diaz and the many others who have been charged with mail-related crimes over the past several months should send a clear message that criminally targeting the U.S. mail is a serious federal offense and will not be tolerated.”
USPIS Inspector in Charge Daniel B. Brubaker said: “As Postal Inspectors our primary mission is the protection of our people, the postal employees who serve the public dutifully each day. We will bring a laser-sharp focus to any investigation of violent criminals and individuals who target our employees, and whose members by doing so seek to steal from the public. The charges against these individuals prove the resolve of Postal Inspectors and our law enforcement partners to pursue these organizations with every resource at our disposal, and to ultimately see that justice is served.”
USPS-OIG Special Agent in Charge Matthew Modafferi said: “We appreciate the outstanding effort by both our Law Enforcement partners and the Department of Justice. The vast majority of Postal Service employees are honest, hardworking individuals who would not violate the public’s trust in this manner. An employee who decides otherwise, however, will be aggressively investigated by OIG Special Agents. These cases serve as an excellent example of the successful collaboration between the USPS OIG, our federal and state law enforcement partners, and the U.S. Attorney’s Office to pursue and prosecute Postal Service employees and their co-conspirators involved in criminal activity.”
FBI Assistant Director in Charge James Smith said: "The FBI is committed to working with our law enforcement partners to ensure that the United States Postal Service is not targeted for nefarious activity by criminal actors.”
NYPD Commissioner Edward A. Caban said: “The charges announced today allege crimes that targeted and, in some cases, betrayed our mail delivery system to prey on innocent victims. Fortunately, our NYPD investigators and law enforcement partners worked in tandem to disrupt this conduct and bring these defendants to justice. We will continue to work hand-in-hand with the U.S. Postal Inspection Service, the USPS Office of Inspector General, the FBI, and the U.S. Attorney for the Southern District of New York to stamp out mail-related crimes and protect the integrity of a service relied upon by millions of New Yorkers.”
According to the allegations in the Indictment, Complaints, and other public filings:[1]
On June 28, 2022, and July 8, 2022, ROBERT DIAZ robbed postal carriers and stole arrow keys belonging to the USPS. Today, an Indictment was unsealed charging DIAZ with two counts of robbery of a postal carrier and two counts of postal key theft, which carry a total maximum sentence of 40 years in prison.
From January 19, 2022, through April 19, 2023, AUBREY FRAZER, an employee of the USPS, stole mail from a USPS facility in Manhattan. He was charged on June 6, 2023, with mail theft by a postal service employee, which carries a maximum sentence of five years in prison.
From May through October 2022, ANDY ARIEL SANTANA cashed more than $100,000 of stolen and fraudulently altered postal money orders in the Bronx. He was charged on August 14, 2023, with money order fraud and receipt of stolen mail, which carry a total maximum sentence of 10 years in prison.
From October 24, 2022, through April 15, 2023, SHERROD MURPHY and RAYSHAWN NIBLACK participated in a mail theft scheme targeting relay and panel boxes in the Bronx. They were charged on April 24, 2023, with conspiracy to commit mail theft and postal key theft, which carries maximum sentence of five years in prison.
From January through August 2023, ERIC BROWN purchased stolen checks and other items worth more than $200,000 that had been unlawfully removed from the mail by a postal employee. He was charged on September 28, 2023, with conspiracy to commit mail theft, which carries a maximum sentence of five years in prison.
On June 15, 2023, KHAYYAM ALEXANDER, SAHEED DUPREE, and DIAMANTE PERRY used a stolen postal key to steal mail from one or more collection boxes in the vicinity of 73rd Street and Madison Avenue in Manhattan. They were charged that same day with one count of conspiracy to commit mail theft and postal key theft, postal key theft, and mail theft, which carry a total maximum sentence of 20 years in prison.
On June 21, 2023, JOSE MATOS possessed more than $60,000 of checks that were stolen from the United States mail and a distribution quantity of crack cocaine. He was charged the following day with receipt of stolen mail and possession with intent to distribute narcotics, which carry a total maximum sentence of 25 years in prison.
On June 26, 2023, LYDELL YANCEY possessed stolen mail and a stolen postal key and was apprehended after being near a collection box in the vicinity of 79th Street and Madison Avenue in Manhattan. He was charged that same day with conspiracy to commit mail theft and postal key theft, postal key theft, and mail theft, which carry a total maximum sentence of 20 years in prison.
On July 6, 2023, DEANDRE JACKSON, QUAMEL PIERCE, and RAHEEM WALLACE possessed stolen mail and a stolen postal key and were apprehended being near a collection box in the vicinity of York Avenue and 72nd Street in Manhattan. They were charged that same day with conspiracy to commit mail theft and postal key theft, postal key theft, and mail theft, which carry a total maximum sentence of 20 years in prison.
On July 10, 2023, MICHAEL EDWARDS and CARLOS MERCADO used a stolen postal key to steal mail in the vicinity of 74th Street and Lexington Avenue in Manhattan. They were charged that same day with conspiracy to commit mail theft and postal key theft, postal key theft, and mail theft, which carry a total maximum sentence of 20 years in prison, and MERCADO was also charged with attempted assault of an officer engaged in official duties, which carries a maximum sentence of 20 years in prison.
On July 25, 2023, JONATHAN CARBUCCIA, JUAN CARBUCCIA, and MANUEL PEREZ stole mail from a collection box in the vicinity of 68th Street and Madison Avenue in Manhattan. They were charged that same day with conspiracy to commit mail theft and postal key theft, postal key theft, and mail theft, which carry a total maximum sentence of 20 years in prison.
On August 1 and 8, 2023, CHRISTIAN CEBOLLERO, an employee of the USPS, stole checks and other items from a USPS facility in Manhattan. On August 8, 2023, he was charged with two counts of mail theft by a postal service employee, which carry a total maximum sentence of 10 years in prison.
On August 14, 2023, EMMANUEL HERNANDEZ stole mail from a collection box in the vicinity of 79th Street and Madison Avenue in Manhattan. He was charged that same day with one count of mail theft, which carries a maximum sentence of five years in prison.
On August 18, 2023, JOHN BURBANO used a stolen postal key to steal mail from collection boxes in the vicinity of 68th Street and Madison Avenue in Manhattan. He was charged that same day with postal key theft and mail theft, which carry a total maximum sentence of 15 years in prison.
On August 23, 2023, JEREMY PINALES DIAZ stole mail from a collection box in the vicinity of 33rd Street and Madison Avenue. He was charged that same day with mail theft, which carries a maximum sentence of five years in prison.
On September 18, 2023, JAYVAUGN VALENTINE and BRIAN GUTIERREZ used a stolen postal key to steal mail from a collection box in the vicinity of 68th Street and Madison Avenue in Manhattan. They were charged the same day with conspiracy to commit postal key theft and mail theft, postal key theft, and mail theft, which carry a total maximum sentence of 20 years in prison.
On September 26, 2023, DONTE GOULBOURNE and ARMANDO KENNETH BENIQUEZ were apprehended in the Bronx after they used a stolen postal key to steal mail. They were charged that same day with conspiracy to commit mail theft and postal key theft, postal key theft, and mail theft, which carry a total maximum sentence of 20 years in prison.
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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 a judge.
Mr. Williams praised the outstanding investigative work of the USPIS, USPS-OIG, FBI, NYPD, and the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York.
The cases are being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Benjamin M. Burkett, Katherine Cheng, Connie Dang, Lisa Daniels, Jackie Delligatti, Jerry J. Fang, Justin Horton, William Kinder, Henry Ross, Chelsea Scism, and Adam Sowlati are in charge of the prosecutions.
The charges contained in the Complaints and Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and Indictment and the description of the Complaints and Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
3 October 2023
Washington Man Sentenced for Hate Crime Targeting LGBTQI+ Community at Seattle NightclubRead the Press Release
A Washington man was sentenced today in federal court for committing a hate crime in connection with an arson at a nightclub and event space in Seattle, Washington.
Kalvinn Garcia, 26, of Sedro Woolley, was sentenced to 48 months in prison followed by three years of supervised release for his bias-motivated arson at Queer/Bar, a nightclub and event space in Seattle.
According to facts admitted in his guilty plea, on Feb. 24, 2020, Garcia set fire to the contents of a dumpster in the alley directly behind Queer/Bar. Garcia was arrested only minutes after setting the fire. Garcia admitted to law enforcement that he set the fire and that he targeted Queer/Bar because it angered him to see a sign that said “queer.” Garcia also told officers, “I think it’s wrong that we have a bunch of queers in our society.” A few weeks after the incident, Garcia told a stranger that his intent in setting the fire was to trap and hurt the people inside. Garcia admitted that, through the use of fire, he willfully attempted to cause bodily injury to the occupants of Queer/Bar because of their actual or perceived sexual orientation or gender identity.
“The defendant committed an act of violence targeting innocent victims inside Queer/Bar, a known safe space for the LGBTQI+ community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Bias-motivated violence runs contrary to our values and violates our federal civil rights laws. This sentence should send the message that every person in our nation deserves equal protection under the law regardless of who they love or how they identify and that those carrying out similar acts of violence against the LGBTQI+ community will be brought to justice.”
“Mr. Garcia endangered the lives of more than 100 people because of his hatred for members of our LGBTQI+ community,” said Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington. “We work diligently with our federal, state and local partners to investigate and prosecute acts of hatred against people because of their sexuality or gender identity. This work is a priority because the effect of these hate crimes can linger in communities and traumatize the members of the targeted community for weeks, months or years after.”
“Mr. Garcia admitted to setting the fire in an effort to hurt people based on his own bias,” said Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office. “No person in the United States should fear for their safety based on their sexual orientation or gender identity. I am proud of the continued work of the FBI and our partners in protecting the civil rights of all people.”
The FBI Seattle Field Office and the Seattle Police Department investigated the case.
Assistant U.S. Attorney Will Dreher for the Western District of Washington and Trial Attorney Matthew Tannenbaum of the Civil Rights Division’s Criminal Section prosecuted the case.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
Washington Man Sentenced for Hate Crime Targeting LGBTQI+ Community at Seattle NightclubRead the Press Release
Seattle – A Washington man was sentenced today in federal court for committing a hate crime in connection with an arson at a nightclub and event space in Seattle, Washington.
Kalvinn Garcia, 26, of Sedro Woolley, Washington, was sentenced to 48 months in prison followed by three years of supervised release for his bias-motivated arson at Queer/Bar, a nightclub and event space in Seattle.
According to facts admitted in his guilty plea, on Feb. 24, 2020, Garcia set fire to the contents of a dumpster in the alley directly behind Queer/Bar. Garcia was arrested only minutes after setting the fire. Garcia admitted to law enforcement that he set the fire and that he targeted Queer/Bar because it angered him to see a sign that said “queer.” Garcia also told officers, “I think it’s wrong that we have a bunch of queers in our society.” A few weeks after the incident, Garcia told a stranger that his intent in setting the fire was to trap and hurt the people inside. Garcia admitted that, through the use of fire, he willfully attempted to cause bodily injury to the occupants of Queer/Bar because of their actual or perceived sexual orientation or gender identity.
“The defendant committed an act of violence targeting innocent victims inside Queer/Bar, a known safe space for the LGBTQI+ community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Bias-motivated violence runs contrary to our values and violates our federal civil rights laws. This sentence should send the message that every person in our nation deserves equal protection under the law regardless of who they love or how they identify and that those carrying out similar acts of violence against the LGBTQI+ community will be brought to justice.”
At the sentencing hearing, U.S. District Judge John C. Coughenour said, “The potential for panic and trampling and death is incredible… Hate is hate, whether it is impacted by mental health or not.”
“Mr. Garcia endangered the lives of more than 100 people because of his hatred for members of our LGBTQI+ community,” said Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington. “We work diligently with our federal, state and local partners to investigate and prosecute acts of hatred against people because of their sexuality or gender identity. This work is a priority because the effect of these hate crimes can linger in communities and traumatize the members of the targeted community for weeks, months or years after.”
“Mr. Garcia admitted to setting the fire in an effort to hurt people based on his own bias,” said Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office. “No person in the United States should fear for their safety based on their sexual orientation or gender identity. I am proud of the continued work of the FBI and our partners in protecting the civil rights of all people.”
The FBI Seattle Field Office and the Seattle Police Department investigated the case.
Assistant U.S. Attorney Will Dreher for the Western District of Washington and Trial Attorney Matthew Tannenbaum of the Civil Rights Division’s Criminal Section prosecuted the case.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
Unsealed Indictment Charges Connecticut Man with Trafficking Guns and Fentanyl in Rhode Island and ConnecticutRead the Press Release
PROVIDENCE, RI – A Windsor, CT, resident was arrested and ordered detained on September 26, 2023, after an indictment issued by a federal grand jury in Rhode Island charged him with engaging in the business of dealing in firearms without a license and conspiracy to distribute 40 grams or more of fentanyl, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, it is alleged that, between late February through May 2023, Daniel Alexander Smith, 19, sold seven firearms and ninety grams of fentanyl while under surveillance by members of the Rhode Island FBI Safe Streets Task Force.
Four of the alleged transactions occurred in RI, and included the sale of an AK-47; a Glock 26; a High Standard revolver; a Taurus 9mm handgun; two .22 caliber pistols; and approximately 40 grams of fentanyl. The fifth and final transaction allegedly occurred in the District of Connecticut, when Smith allegedly sold a Glock 19x pistol, a High Standard shotgun, and approximately 51g of fentanyl.
In each instance, the firearms and fentanyl allegedly sold by Smith were quickly seized by members of the Safe Streets Task Force.
Following Smith’s arrest, a court-authorized search warrant was executed on his vehicle, resulting in the seizure of a loaded automatic Glock 22 firearm with a sear switch attached, and a 22-round magazine.
Smith was ordered detained following his arraignment in U.S. District Court in Providence. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Julie M. White.
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. In May 2021, the Justice 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 matter is being investigated by the FBI Rhode Island Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The FBI Rhode Island Safe Streets Task Force consists of agents and officers from the FBI, United States Marshals Service, Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, West Warwick Police Department, Woonsocket Police Department, and Rhode Island State Police .
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United States Facilitates Court-Ordered Sale of Sayville Motor Lodge to New OwnerRead the Press Release
The United States yesterday completed the sale of the Sayville Motor Lodge in Sayville, Long Island to a company that is partially owned by a principal of a neighboring business with longstanding ties to the community. By Order entered on September 11, 2023, United States District Judge Joanna Seybert approved today’s sale of the Sayville Motor Lodge for the sum of $2 million, with the payment out of the sale’s proceeds to prior lenders on the property. The remaining proceeds are earmarked for forfeiture to the United States government, which will enable the office to seek their use in compensating the victims of the charged conduct through the Department of Justice’s remission procedures.
The Sayville Motor Lodge was a drug-involved property at the center of a sex trafficking conspiracy based on Long Island. In November 2022, an indictment was unsealed in federal court in Central Islip charging Timothy Bullen, Michael Johnson, Narendarakuma Dadarwala, his wife Shardaben Dadarwala, their son Jigar Dadarwala, Ashokbhai Patel, and Himanshu, Inc. d/b/a Sayville Motor Lodge with sex trafficking conspiracy. The Dadarwalas, Patel, and Himanshu, Inc. were also charged with managing a drug premises, and Narendarakuma Dadarwala was charged with distribution of proceeds of prostitution and narcotics businesses. Charges against the defendants are pending. There is no trial date at the present time.
Breon Peace, United States Attorney for the Eastern District of New York, and Vincent F. DeMarco, United States Marshal for the Eastern District of New York, announced the sale of the property.
“As a result of this sale, the Sayville Motor Lodge is no longer ground zero of an insidious money-maker for prostitution and narcotics trafficking, and a blight on the surrounding community,” stated United States Attorney Peace. “Instead, the property will be repurposed by its new owner for the benefit of the residents of Long Island.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, the Suffolk County Police Department, the Suffolk County District Attorney’s Office, the Suffolk County Sheriff’s Office, the Nassau County District Attorney’s Office, United States Customs and Border Protection, and Homeland Security Investigations for their work on the case.
“The closing of the sale of this property yesterday is a positive step that will increase public safety in this community,” stated United States Marshal DeMarco.
The Underlying Sex Trafficking Scheme
As set forth in court filings, the Dadarwalas owned and operated the Sayville Motor Lodge since approximately 1984. They resided and worked at the motel. From 2017 to 2019, Ashokbhai Patel was employed and also lived there. The Dadarwalas and Patel facilitated the criminal activity at the Sayville Motor Lodge and profited from the prostitution and narcotics activity that routinely took place there. They were aware that women engaged in prostitution, including at least one minor trafficking victim. They warned traffickers and women engaged in prostitution when law enforcement was on the premises and observed traffickers inflict physical violence on their victims and customers.
From approximately 2014 until 2018, Bullen allegedly operated his sex trafficking business out of the Sayville Motor Lodge, in coordination with the Dadarwalas and Patel; and from approximately 2018 until 2020, Johnson allegedly operated his sex trafficking business out of the Sayville Motor Lodge, in coordination with the Dadarwalas and Patel. Bullen and Johnson trafficked several women out of the motel, including a minor, and routinely subjected the women who worked for them to mental and physical violence. In furtherance of their respective operations, Bullen and Johnson kept the women who worked for them addicted to drugs and introduced them to prostitution in exchange for drugs.
In addition, from 2014 to the present, the Dadarwalas, Patel, and Himanshu, Inc. profited from the narcotics trafficking that was conducted openly on Sayville Motor Lodge property. The defendants allowed customers to freely use drugs, including heroin, cocaine and crack cocaine, in plain view and in motel rooms. Much like the traffickers, drug dealers paid the Sayville defendants for the privilege of selling drugs at the Sayville Motor Lodge.
The Government Obtains Order To Restrain The Sayville Motor Lodge
In connection with the indictment, the government sought to forfeit the Sayville Motor Lodge. In addition, to ensure the property was preserved for forfeiture, the United States obtained an order restraining the defendants from transferring, encumbering or operating the Sayville Motor Lodge in violation of law.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Catherine M. Mirabile, Samantha S. Alessi and Brian Morris are in charge of the prosecution.
The Defendants:
TIMOTHY BULLEN, also known as “Trouble,” “T” and “Tiervoni,”
Age: 36
Bay Shore, New YorkMICHAEL JOHNSON, also known as “Wise”
Age: 34
Selbyville, DelawareJIGAR DADARWALA, also known as “Cobra”
Age: 45
Sayville, New YorkNARENDARAKUMA DADARWALA, also known as “Naren,” “Pa” and “Dad”
Age: 77
Sayville, New YorkSHARDABEN DADARWALA, also known as “Sharda,” “Ma” and “Mom”
Age: 70
Sayville, New YorkASHOKBHAI PATEL, also known as “BG”
Age: 59
Omaha, NebraskaHIMANSHU, INC. d/b/a Sayville Motor Lodge
E.D.N.Y. Docket No. 22-CR-494 (JS)
Two from Lexington Sentenced to Federal Prison for Drug Conspiracy and Weapon ChargesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Caleb York Rowell, age 30, of Swansea, South Carolina, and Brandi Leann Clarke, a/k/a “Brandi Savage,” age 26, of Gaston, South Carolina, were both sentenced today in federal court for their roles in a drug conspiracy where they sold firearms and drugs to confidential informants and undercover agents in the summer of 2021. Rowell was sentenced to 292 months imprisonment after pleading guilty to conspiracy to possess with intent to distribute and to distribute fentanyl, heroin, and methamphetamine, possession with intent to distribute and distribution of heroin and fentanyl, felon in possession of a firearm, and possession of a short-barreled shotgun not registered to him in the National Firearms Registration and Transfer Record. Clark was sentenced to 57 months imprisonment after pleading guilty to conspiracy to possess with intent to distribute and to distribute fentanyl, heroin, and methamphetamine.
Evidence presented to the Court showed that the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) began an investigation into Rowell’s drug distribution in May of 2021. During a recorded call with a confidential informant on May 11, 2021, Rowell bragged about running away from a traffic stop the day before that resulted in a wreck and how officers found his drugs and gun. ATF confirmed that the day before, May 10, 2021, Gaston Police Department had been in a car chase after they attempted to stop a vehicle for a traffic violation. That chase culminated in the driver wrecking the vehicle and fleeing on foot. Along the route where the driver fled, officers were able to locate a fanny pack containing bags of heroin and fentanyl and nearby they found a stolen pistol. Through the recorded call and witnesses at the scene, officers were then able to identify Rowell, who was wearing a state court ankle monitor, as the driver who fled from the scene and discarded the drugs and firearm.
Thereafter, between May and July 2021, law enforcement made a series of undercover purchases of firearms, heroin, fentanyl, and methamphetamine from Rowell and Clark, Rowell’s girlfriend. One of the firearms sold by Rowell to the undercover agent was an unregistered short-barreled shotgun. Both Rowell and Clark admitted knowing the drugs contained fentanyl and during one transaction, Clark boasted about the quality of the drugs to the undercover agent. Additionally, the investigation revealed that Rowell was a member of a gang, although he disputed membership.
Both Rowell and Clark are prohibited from possessing firearms based upon prior felony convictions in state court. Rowell has prior state convictions for criminal domestic violence, conspiracy to manufacture methamphetamine, failure to stop for blue light and siren, driving under suspension 3rd offense, and two convictions for possession with intent to distribute methamphetamine. Clark has two prior state convictions for possession of methamphetamine.
United States District Judge Sherri A. Lydon sentenced Rowell to a total of 292 months imprisonment, to be followed by a 6-year term of court-ordered supervision and a $500 special assessment fee. Clark was sentenced to a total of 57 months imprisonment, to be followed by a 6-year term of court-ordered supervision with a $100 special assessment fee. There is no parole in the federal system. In sentencing the defendants, the court noted the seriousness of the offense, especially since it involved fentanyl, which has shown to be deadly, and noted, “I take all my cases seriously, but when fentanyl is involved, the need to protect the public is critical.”
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) with assistance of the Lexington County Sheriff’s Office, Gaston Police Department, Swansea Police Department, and the Richland County Sheriff’s Office. Assistant U.S. Attorney Stacey D. Haynes prosecuted the case.
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Three men arrested, charged with stealing mailRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Legend Terrance Davis, 20, and Nathan Romar Arnold, 23, both of Rochester, NY, and Blake Montel Crayon, 27, of Willoughby, OH, were arrested and charged by criminal complaint with possession of a US Postal Service key and theft of mail. The charges carry a maximum penalty of 10 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that according to the complaint, since January 2023, the U.S. Postal Inspection Service in Rochester office has been investigating a string of robberies involving the theft of postal mailbox keys. According to the complaint, early this morning, October 2, 2023, Postal Inspectors were headed to investigate a report that a blue USPS collection box across from the Brighton Station Post Office had been opened. On the way, they noticed two individuals walking in the direction of the Greece Post Office on Latta Road. The descriptions of those two individuals matched descriptions of suspects in previous robberies. A short time later, the Postal Inspectors noticed mail scattered on the ground near a Greece Post Office collection box. A review of video surveillance showed that the two suspects who allegedly robbed the collection box appeared to be the same ones that were seen walking down Latta Road.
Subsequently, at approximately 2:35 a.m. this morning, three collection boxes at the Jefferson Road Post Office were being robbed. At that time, Postal Inspectors conducting surveillance approached with lights and sirens. Defendants Davis and Arnold ran away but were apprehended following a brief foot chase. A third defendant, Crayon, who was driving the getaway car, was also taken into custody.
The complaint is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Inspector in Charge Ketty Larco-Ward, Boston Division, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, and the Greece Police Department, under the direction of Chief Michael Wood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Three Individuals Convicted in $93M Home Health Fraud and Money Laundering SchemeRead the Press Release
A federal jury in Miami convicted a Florida man and woman today for their roles in a conspiracy to defraud Medicare by billing over $93 million for home health therapy services that were never rendered.
According to court documents and evidence presented at trial, Karel Felipe, 42, of Miami Shores, and Tamara Quicutis, 54, of Hialeah, conspired with others to submit false bills to Medicare for three home health companies located in Michigan. Their co-conspirators recruited individuals from Cuba to sign Medicare enrollment documents and appear as the owners of the home health agencies to conceal the identities of Felipe, Quicutis, and others involved in the scheme. Felipe, Quicutis, and their co-conspirators used these home health companies to submit claims for services that were not rendered using lists of stolen patient identities. Felipe, Quicutis, and their co-conspirators used hundreds of shell companies and bank accounts to launder the Medicare fraud proceeds and convert the proceeds into cash at Miami-area ATMs and check cashing stores.
After the trial commenced, a third defendant, Jesus Trujillo, 52, of Miami, pleaded guilty to one count of conspiring to commit health care fraud and wire fraud and one count of conspiring to commit money laundering. Trujillo oversaw a group of people that recruited nominee owners for home health agencies and shell companies and converted Medicare fraud proceeds into cash.
The jury convicted Felipe and Quicutis of conspiracy to commit health care fraud and wire fraud, and conspiracy to commit money laundering. They are scheduled to be sentenced on Jan. 4, 2024, and they face a maximum penalty of 20 years in prison on each conspiracy charge. Trujillo is scheduled to be sentenced on Dec. 21 and faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office, and Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) Miami Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorneys Jamie de Boer, D. Keith Clouser, and Emily Gurskis of the Criminal Division’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Gabrielle Charest-Turken for the Southern District of Florida is handling asset forfeiture.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Temich-Ramirez Charged with Illegally Possessing a ShotgunRead the Press Release
Burlington, Vermont - The United States Attorney’s Office stated that Ciro Temich-Ramirez, 35, has been charged by criminal complaint with illegal possession of a firearm by an individual who is unlawfully in the United States. Temich-Ramirez initially appeared before Magistrate Judge Kevin J. Doyle on October 3, 2023 and Temich-Ramirez was ordered detained pending trial.
According to court documents, on September 30, 2023, a federal agent encountered Temich-Ramirez less than one mile south of the United States and Canada border in North Troy, Vermont. Temich-Ramirez was standing next to a vehicle. Following a brief conversation, a physical altercation ensued between the agent and Temich-Ramirez. Additional federal agents responded and, after they restrained Temich-Ramirez, found a shotgun in Temich-Ramirez’s car. Temich-Ramirez, who is a Mexican national, is prohibited from possessing firearms because he is an individual unlawfully in the United States.
The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only and that Temich-Ramirez is presumed innocent until and unless he is convicted of a crime. As presently charged, Temich-Ramirez faces a maximum sentence of 15 years’ imprisonment if convicted as charged. The actual sentence, however, would be determined by the federal district court with guidance from the advisory United States Sentencing Guidelines and statutory sentencing factors.
United States Attorney Nikolas P. Kerest commended the investigatory efforts and rapid response of the United States Border Patrol.
The United States is represented by Assistant U.S. Attorney Zachary Stendig. Temich-Ramirez is represented by Assistant Federal Public Defender Sara Puls, Esq.
Telecommunications Consultant Pleads Guilty to Violating Sanctions on IranRead the Press Release
Farhad Nafeiy, 70, of Alamo, California, was charged with and pleaded guilty yesterday to a violation of the International Emergency Economic Powers Act (IEEPA) in the Northern District of California.
Under IEEPA, the President of the United States is granted authority to address unusual and extraordinary threats to the national security, foreign policy, or economy of the United States. Under that law, the President has issued orders prohibiting certain activities and transactions with Iran and the Government of Iran. The Department of Treasury’s Office of Foreign Assets Control (OFAC) has issued regulations, referred to as the Iranian Transactions and Sanctions Regulations (ITSR), implementing those orders. These sanctions on Iran generally prohibit, among other things, exporting or facilitating the export of U.S.-origin products to Iran and providing services to Iran.
According to court documents, Nafeiy obtained licenses – or approvals – from OFAC for advising non-Iranian telecommunications companies on doing business with Iran. However, those licenses did not authorize Nafeiy to provide any hardware, software or technology directly to Iran. Nafeiy exceeded his OFAC licenses, thereby violating the ITSR and IEEPA, by directly providing software upgrades to telecommunications equipment in Iran. Nafeiy admitted in his plea agreement that he knew he exceeded these licenses when he did so. In his plea agreement, Nafeiy further admitted that the total amount of sales of such software upgrades to Iran was approximately $400,000. Nafeiy separately was charged with, and admitted to, evading his federal income taxes, and specifically not paying income tax on some of the proceeds of these sales.
On Aug. 10, Nafeiy was charged by information with one count of violating IEEPA and one count of tax evasion. Sentencing is set before the Honorable Aracelli Martínez-Olguín on Jan. 29, 2024.
Homeland Security Investigations and the IRS-Criminal Investigation are investigating the case.
Assistant U.S. Attorney Benjamin Kingsley for the Northern District of California and Trial Attorney David Ryan of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance from Kathleen Turner of the U.S. Attorney’s Office for the Northern District of California. Former Trial Attorney Elizabeth Abraham provided valuable assistance in prior phases of the prosecution.
Nafeiy InformationStanding Rock Man Sentenced to 17 Years in Prison for Abusive Sexual ContactRead 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 Brandon Yazzie was sentenced to 17 years in prison. Yazzie, 30, of Standing Rock, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty to two counts of abusive sexual contact on May 25, 2023.
According to court records, on September 22, 2021, the FBI received a referral from the City of Avondale Police Department, Avondale, Arizona. The referral documented the sexual assault of Jane Doe, a minor who was then under 12 years old, by Yazzie on multiple occasions between December 2020 and January 2021 at Yazzie’s residence in Standing Rock, New Mexico. Specifically, Yazzie engaged in sexual contact with the victim and afterward, told her “this never happened” with the intent that his acts would remain secret.
Upon his release from prison, Yazzie will be subject to 10 years of supervised release and must register as a sex offender.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Avondale (Arizona) Police Department, Navajo Police Department and Department of Criminal Investigations. Assistant United States Attorney Alexander F. Flores is prosecuting the case.
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St. Louis Man Sentenced to 27 Months in Prison on Firearm ChargeRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Tuesday sentenced a man from St. Louis, Missouri to 27 months in prison on a firearm charge.
Allen L. Robinson, 28, pleaded guilty in May to a felony charge of possession of a firearm while under an order of protection. He admitted that at about 3 a.m. on March 19, 2022, St. Louis Metropolitan Police Department officers responding to a call about shots fired in downtown St. Louis encountered Robinson, who matched the description of the shooter. As the police vehicle drove toward Robinson, he stepped out into the street in front of the vehicle and displayed a gun to the officers inside, Robinson’s plea says. The officer drove forward to get away from the threat and then turned around to face Robinson. Robinson ran and was arrested by other officers nearby. He had a loaded Taurus 9mm pistol in his waistband.
Robinson was under an order of protection at the time, prohibiting him from harassing, stalking or threatening a romantic partner. The order also prohibited Robinson from possessing a firearm.
At Tuesday’s hearing, a detective testified that about 30 minutes before Robinson encountered police, a man matching Robinson’s description shot at a van driving by Kiener Plaza, then pointed a gun at someone waiting on the street for a friend. The gunman fired a shot into the air and headed south, where “numerous” 911 calls reported shots being fired.
The St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney Donald Boyce prosecuted the case.
Springville nurse arrested, charged with possession and distribution of child pornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Erik Hjemdahl-Monsen, 46, of Springville, NY, was arrested and charged by criminal complaint with possession and distribution of child pornography. The charges carry a mandatory minimum penalty of five years in prison and a maximum of 20 years in prison.
Assistant U.S. Attorney Caitlin M. Higgins, who is handling the case, stated that according to the complaint, in December 2022, the National Center for Missing and Exploited Children (NCMEC) alerted the New York State Police about an image of child pornography that had been uploaded on the Kik application. The NYSP began investigating and traced the image to Hjemdahl-Monsen, an Emergency Room Nurse at Oishei Children's Hospital. On Sept. 21, 2023, investigators executed a search warrant at Hjemdahl-Monsen’s residence and seized 10 items. During the search, investigators found a video containing child pornography video on Hjemdahl-Monsen’s iPhone that appeared to be stored on the device since 2020. On Sept. 29, 2023, the NYSP alerted the FBI and turned over the 10 items seized during the search warrant. A further review of Hjemdahl-Monsen's iPhone recovered several more videos containing child pornography.
Hjemdahl-Monsen made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and was held pending a detention hearing on October 5, 2023, at 11:00 a.m.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Eugene Staniszewski, and the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Springfield Man Sentenced to 20 Years for Sexual Exploitation of 11-Year-Old Minnesota VictimRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for his sexual exploitation of an 11-year-old child victim in Minnesota.
Jeffrey Scott Saltkill, 36, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole. Saltkill will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On Dec. 1, 2022, Saltkill pleaded guilty to one count of the sexual exploitation of children. Saltkill admitted that he communicated online and via text with an 11-year-old Minnesota girl after she posted her cell phone number on the chat website Omegle. Posing as two separate persons (including a teenage boy), Saltkill engaged in graphic sexual conversations and exchanged pornographic images with the child victim. She gave Saltkill the name of her town and school, and he indicated that he would visit her in person.
When the child victim’s mother handed her daughter’s cell phone over to law enforcement, an undercover FBI agent responded to Saltkill, using the persona of the child victim. Saltkill told the undercover agent that he was in the child victim’s town, but the undercover agent told him they were out of town. Saltkill continued to communicate with the undercover agent, whom he believed to be the child victim, sending links to videos of adult pornography and urging her to engage in sexual activity.
Law enforcement officers executed a search warrant at Saltkill’s residence. Saltkill told investigators that he was addicted to communicating with children and obtaining pornographic images. He said he had similar sexual communications with four or five additional minors within the last two years.
This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the FBI, the Southwest Missouri Cyber Crimes Task Force, and the Springfield, Mo., Police Department.
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."
Springfield Man Sentenced to 20 Years for Leading Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for leading a large heroin trafficking organization with his wife.
Larry K. Hayward, 40, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole.
On Aug. 24, 2022, Hayward was convicted at trial of one count of conspiracy to distribute heroin, three counts of distributing heroin, and one count of possessing heroin with the intent to distribute.
According to evidence introduced during the trial, Hayward and his wife, co-defendant Jasmine D. Steed, 36, were co-leaders of a criminal organization that consistently distributed heroin in the Springfield community from approximately Nov. 15, 2016, to Oct. 17, 2018. Court documents conservatively estimate they distributed at least three kilograms of heroin during that nearly two-year period. Hayward and Steed obtained heroin from a source in Chicago, Illinois. They distributed heroin themselves and recruited others to help distribute heroin.
Law enforcement officers executed search warrants at both of Hayward’s residences in Springfield and Waynesville, Mo. At his Waynesville residence, officers found a loaded Sig Sauer .380-caliber pistol, $5,000 in cash, and drug paraphernalia. Steed was present during the search of their Springfield residence, where officers found heroin.
Hayward has four prior felony convictions for possession of a controlled substance and a prior felony conviction for selling cocaine to an undercover officer. He also has a prior felony conviction for burglary, three misdemeanor convictions for possession of drugs, and a conviction for driving under the influence of alcohol.
Hayward is the fifth and final defendant to be sentenced in this case. Steed was sentenced on March 25, 2021, to 16 years and eight months in federal prison without parole. Co-defendants Richard J. Smith, 48, of Springfield, Rashad J. Moore, 31, of Branson, Mo. and Damario J. Brown, 33, whose address was unknown, also pleaded guilty and have been sentenced.
This case was prosecuted by Assistant U.S. Attorney Cameron A. Beaver. It was investigated by the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Spiro Resident Pleads Guilty to Distribution of MethamphetamineRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Presley Edward Lawson, age 49, of Spiro, Oklahoma, entered a guilty plea to one count of distribution of methamphetamine.
The Indictment, filed on June 14, 2023, charged Lawson with four counts of Distribution of Methamphetamine.
According to investigators, Lawson sold methamphetamine to a subject on four occasions between June and August 2022. The total amount of methamphetamine distributed was just over 855 grams.
The charges arose from an investigation by the U.S. Drug Enforcement Agency, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Sequoyah Sheriff’s Office, and the Federal Bureau of Investigation.
The Honorable D. Edward Snow, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Lawson was remanded to the custody of the U.S. Marshals Service pending sentencing.
Assistant United States Attorney James Seaman represented the United States.
Social Security employee admits creating fake children’s profiles to steal government moneyRead the Press Release
BROWNSVILLE, Texas – A 38-year-old Harlingen resident and former claims specialist with the Social Security Administration (SSA) has pleaded guilty to theft of government property, announced U.S. Attorney Alamdar S. Hamdani.
Lee Marvin Nichols admitted to creating fictitious profiles for two children that did not exist. He linked the profiles to a recently deceased man and disabled woman living in Mexico in an attempt to create a survivor benefits application.
Nichols ensured that the debit cards for the children’s benefits were sent to the address of someone with whom he was associated. He would then use the debit cards to make regular withdrawals at ATMs. When making those withdrawals, he attempted to disguise himself by using hats pulled down over his face, sunglasses, balaclavas and other clothing to conceal his appearance.
In addition, the IRS issued economic stimulus payments of $1,400 to each fictitious child.
As part of his plea, Nichols took responsibility for over $75,000 in loss to the federal government. He also agreed to pay $82,516 in restitution to the SSA and $2,800 in restitution to the IRS.
U.S. District Judge Rolando Olvera will impose sentencing Dec. 27. At that time, Nichols faces up to 10 years in federal prison and a $250,000 maximum fine.
The SSA-Office of Inspection General, Treasury Inspector General for Tax Administration and IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Brad Gray, Ben Sandel, Andrew Swartz and Jose Esquivel are prosecuting the case.
Shiprock Man Charged with Assault with a Dangerous Weapon Against a MinorRead 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’s Albuquerque Field Office, announced that Darron Smith appeared in federal court on an indictment charging him with assault with a dangerous weapon against a minor and assault resulting in serious bodily injury. Smith, 23, of Shiprock, and an enrolled member of the Navajo Nation, will remain in custody pending a detention hearing set for Tuesday, October 3, 2023.
According to court documents, Smith assaulted John Doe, an individual under the age of 18, with a dangerous weapon, specifically, a knife, and the assault resulted in serious bodily injury.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Smith faces 10 years up to life imprisonment and up to 5 years of supervised release thereafter.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with the assistance of the Navajo Nation Police Department and the Navajo Department of Criminal Investigations. Assistant U.S. Attorney Matthew J. McGinley is prosecuting the case.
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Seven Defendants Sentenced for Drug and Firearm Offenses Related to 2019 Burlington MurderRead the Press Release
Burlington, Vermont – The United States Attorney’s Office announced that seven defendants have been sentenced in connection with drug and firearm charges related to the murder of Benzel Hampton on April 16, 2019, concluding today with the sentencing of James Felix. All seven defendants previously pleaded guilty to charges including conspiracy to distribute cocaine base, cocaine, and heroin, and conspiracy to use a firearm during and in relation to a drug conspiracy.
According to court records, in late 2018, Lesine Woodson came to Vermont from Orlando, Florida, to sell cocaine base in partnership with Benzel Hampton, who was also from Orlando. Shortly after arriving in Vermont, Woodson refused to use the profits of the partnership’s drug sales to pay Hampton’s bail after Hampton was arrested and then attempted to take over the business of selling to Hampton’s Burlington-area drug customers. Woodson’s actions started a feud between she and Hampton, eventually leading to the murder of Hampton.
Woodson brought several individuals to Vermont from Orlando, Florida, including her 18-year-old cousin, Brandon Sanders, her boyfriend, James Felix, and her childhood friend, Johnny Ford. During early 2019, the group sold cocaine base in and around Burlington and lived in an apartment located on Lafountain Street in Burlington that served as the base of operations for the drug and firearm conspiracies for which they have been convicted. Jennifer MacDonald and Devlin Koski worked for Woodson selling cocaine base on her behalf.
The feud between Woodson and Hampton reached its apex on April 16, 2019, after Hampton sent a text message referring to Ford and stating, “this is my city” and “checkmate.” After receiving the message, Felix and his co-conspirators borrowed a drug customer’s car, and Felix and Ford retrieved firearms. The group located Hampton at 235 North Willard Street, the residence of a drug customer of both Woodson and Hampton. Ford, Felix and Sanders waited for Hampton near the door to 235 North Willard Street. When Hampton walked out of the building, Felix tackled Hampton. Hampton, too, was armed and shooting began. Both Ford and Felix shot Hampton. Felix was also shot several times. Ford, Felix, Woodson and Sanders fled while Hampton died of his wounds. Three .380 caliber bullets shot by Ford were found in Hampton’s body, causing fatal wounds to his chest and his head, and one .22 caliber bullet shot by Felix – causing a non-fatal wound – was found in Hampton’s head.
Woodson and Felix were arrested after Felix was taken to UVM Medical Center. Angelina Pearson and another individual discarded the firearms in a wooded area in South Burlington, Vermont, where they were later located by police. Pearson and Sanders were arrested the following day during a motor vehicle stop on Interstate 95 in Enfield, Connecticut. Ford was arrested at a motel in Enfield, Connecticut, where law enforcement found more than 100 combined grams of heroin, cocaine and cocaine base, along with more than $17,000 of U.S. currency.
United States District Judge Christina Reiss imposed the following sentences, each followed by a three-year term of federal supervised release, which were advised by the Federal Sentencing Guidelines:
Johnny Ford – 180 months (15 years)
James Felix – 138 months
Lesine Woodson – 89 months
Brandon Sanders – 49 months
Angelina Pearson – Time Served
Jennifer MacDonald – Time Served
Devlin Koski – Time ServedU.S. Attorney Nikolas P. Kerest stated: “This violent, drug-involved crime occurred in the middle of the day in Burlington as children and their parents walked home from school. It is exactly the kind of horrific and disruptive crime that we work every day to eradicate. This particular case was complex and required significant collaboration between the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Burlington Police Department, and the Enfield (CT) Police Department. I am thankful for and applaud that collaboration and the determined efforts of all of our law enforcement partners who worked to solve this crime and who go to work every day seeking to make Vermont a safer place to live. You can be sure that as long as violent crime persists in the District of Vermont, the U.S. Attorney’s Office will continue to expend significant resources in this area.”
ATF Boston Field Division Special Agent in Charge James Ferguson stated: “These case results represent the epitome of law enforcement agencies working together to target and dismantle violent drug traffickers that threaten the safety and stability of our neighborhoods. The citizens of Burlington and all of Vermont have the right to a life free from gun crime. We hope our neighbors sleep a little sounder knowing ATF will never falter in our commitment to work with our local, state and federal partners to attack these dealers and remove violent criminals from our neighborhoods.”
DEA New England Field Division SAC Brian D. Boyle stated: “DEA is committed to dismantling violent drug trafficking organizations. As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and communities. This is unacceptable and will not be allowed to happen. DEA and its local, state and federal partners are dedicated to bringing to justice those that commit these crimes.”
Burlington Police Department Chief John Murad stated: “This was a horrible crime. Murder is rare but when it does arrive we seek justice. I want to acknowledge the amazing work done by all our officers on scene. I am always humbled by the men and women of the BPD for the work they do for the city and the communities they serve. I want to thank and acknowledge our detectives who put a tremendous amount of time and resources into this investigation. We are grateful for our federal partners and especially thankful for the United States Attorney’s Office for stepping up and taking on such a complex case. And we are continuously thankful to our fellow law enforcement partners for working together throughout this case – this collaboration was vital.”
The case was prosecuted by Assistant U.S. Attorneys Nate Burris and Paul Van de Graaf. Johnny Ford was represented by Natasha Sen, Esq. and Heather Ross, Esq. James Felix was represented by David Sleigh, Esq. Lesine Woodson was represented by Peter Langrock, Esq. and William Vasiliou, Esq. Brandon Sanders was represented by Mark Oettinger, Esq. Angelina Pearson was represented by John-Claude Charbonneau, Esq. Jennifer MacDonald was represented by Robert Behrens, Esq. Devlin Koski was represented by Paul Volk, 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.
Seminole County Resident Pleads Guilty to Second Degree MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Douglas Vaughn Switch, Jr., age 46, of Seminole, Oklahoma, entered a guilty plea to an Information charging him with one count of Murder in Indian Country – Second Degree, punishable by up to life in prison.
According to investigators, on October 23, 2023, Switch shot the victim in the head with a .380 pistol, killing her instantly. The crime occurred in Seminole County, within the boundaries of the Seminole Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, and the Seminole County Sheriff’s Department.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. The defendant was remanded to the custody of the United States Marshal.
Assistant United States Attorney Erin Cornell represented the United States.
San Diego Resident Pleads Guilty to Distributing Fentanyl that Resulted in Teenager’s DeathRead the Press Release
SAN DIEGO – Jose Daniel Ramirez of San Diego pleaded guilty in federal court today to possession with intent to distribute pills laced with fentanyl that killed a 19-year-old Poway resident, referred to in court records as K.W.P., on January 3, 2023.
Ramirez admitted to selling the fentanyl pills, disguised as oxycodone, to K.W.P. and others. In a series of text messages, Ramirez agreed to sell “2 blues” to K.W.P. After receiving and consuming the pills, K.W.P. was found dead of a fentanyl overdose a few hours later. After learning of K.W.P.’s death, Ramirez changed his phone number, informed clients of his new number, and continued to sell fentanyl.
On February 8, 2023, law enforcement officers arrested Ramirez. Following Ramirez’s arrest, investigators secured a warrant and searched his residence. There they located two Glock handguns, over 250 rounds of various ammunition and approximately 2,600 blue pills containing fentanyl along with cocaine and other drugs. One of the handguns was fully loaded with a round of ammunition in the chamber.
“It is outrageous that this defendant continued to sell fentanyl even after learning of their customers’ deaths,” said acting U.S. Attorney Andrew Haden. “Fentanyl deaths resulting from the actions of profit-seeking drug dealers will continue to be zealously prosecuted.”
“Fentanyl kills indiscriminately, and the defendants’ callous and irresponsible disregard led to the tragic death of a teenager,” said Chad Plantz, special agent in charge for HSI San Diego. “Overdoses due to fentanyl have dramatically increased – this is unacceptable. I commend the work of the HSI special agents and our partners who work tirelessly every single day to stop preventable drug poisonings from taking so many lives too soon.”
“Since 2017, the San Diego Sheriff's Department has been a leader in investigating drug overdose death cases,” said San Diego County Sheriff Kelly Martinez. “The Sheriff's Department is dedicated to identifying and arresting fentanyl dealers who provide this deadly drug to our communities. During this investigation, Mr. Ramirez continued selling this dangerous drug, but we were able to stop him in the act of selling fentanyl to an 18-year-old at the time of his arrest. The actions of all involved likely saved the life of another teenager. We are proud of the collaborative effort of Sheriff's FAST Detective Morse and his federal partners with Homeland Security Investigations, Customs and Border Protection, the Drug Enforcement Administration, and the United States Attorney's Office. The Sheriff's Department will continue in these partnerships and target these dangerous drug dealers in our continued effort to combat this deadly epidemic.”
Ramirez is scheduled to be sentenced on January 3, 2024, at 9 a.m. before U.S. District Judge Ruth Bermudez Montenegro.
Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation into K.W.P.’s death. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, and the California Department of Health Care Services to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.
This case is being prosecuted by Assistant U.S. Attorneys Sean Van Demark and Dylan M. Aste.
DEFENDANT Case Number 23cr00274-RBM
Jose Daniel Ramirez Age: 20 San Diego, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
AGENCY
Homeland Security Investigations
San Diego Sheriff
Drug Enforcement Administration
Registered Sex Offender Sentenced to 15 Years in Prison and Lifetime Supervised Release for Distributing Child Pornography While on Supervised ReleaseRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 180 months in prison for distributing multiple images depicting child sexual abuse while on supervised release for possessing and receiving child pornography, U.S. Attorney Philip R. Sellinger announced.
Hugh Cohen, 65, of Elizabeth, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of distributing child pornography. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Cohen was previously convicted in federal court on a two-count indictment charging him with possessing and receiving child pornography in 2010, for which Cohen was sentenced to five years in prison followed by seven years of supervised release. Supervised release commenced on Oct. 29, 2014 and was to expire on Oct. 28, 2021.
While still on supervised release, from March 28, 2021, to April 24, 2021, Cohen engaged an undercover agent in an ongoing sexually graphic conversation on a web-based application. Cohen sent the undercover agent multiple images depicting the sexual abuse of children. Law enforcement also subsequently discovered numerous images of child sexual abuse on Cohen’s cellphone.
In addition to the prison term, Judge Martini sentenced Cohen to a lifetime term of supervised release. Cohen must also register as a sex offender.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy, 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 sentencing.
The government is represented by Assistant U.S. Attorney DeNae M. Thomas of the U.S. Attorney’s Criminal Division in Newark.
Previously Convicted Felon Caught on Snapchat Pleads Guilty to Firearm and Drug OffensesRead the Press Release
BOSTON – A Boston-area man pleaded guilty yesterday to illegally possessing a firearm with an obliterated serial number while on supervised release from an earlier federal firearm charge.
Dane Mitchell, 32, of Boston and Revere, pleaded guilty to being a felon in possession of a firearm and ammunition and possession with intent to distribute cocaine. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Jan. 9, 2024.
In 2021, an investigation into a violent Boston gang identified Mitchell as the owner of a Snapchat account that posted images of himself with firearms. Specifically, the images showed Mitchell’s face with firearms and showing bullet holes in his vehicle after he had been shot at. Mitchell is prohibited from possessing firearms and ammunition due to a 2018 federal conviction in Maine of unlawful transportation of firearms, for which he was sentenced to 27 months in prison and three years of supervised release.
During a search of Mitchell’s Revere residence in December 2021, a Taurus TCP Model 738 PT .380 caliber pistol with an obliterated serial number, loaded with four rounds of .380 caliber ammunition in the clip and one round in the chamber, five additional rounds of the same type of .380 caliber ammunition, one round of 5.7 millimeter ammunition, bags of cocaine, cocaine base, and fentanyl, cutting agents, a digital scale, blender and a press for packaging narcotics were seized.
The charge of being a felon in possession of a firearm and ammunition provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 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.
The operation was conducted is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Special assistance in the investigation was provided by the Boston, Quincy and Lynn Police Departments. Assistant U.S. Attorney Christopher Pohl of the Narcotics & Money Laundering Unit is prosecuting the case.
President of Metalhouse LLC Pleads Guilty to Conspiracy to Launder over $150 Million to Promote Russian Sanctions ViolationsRead the Press Release
WASHINGTON – John Can Unsalan, aka Hurrem Can Unsalan, 41, of Orlando, the president of Metalhouse LLC, pleaded guilty today to engaging in a conspiracy to commit money laundering to promote violations of U.S. sanctions by conducting transactions to acquire over $150 million in metal products from companies owned by Sergey Kurchenko, a sanctioned oligarch.
According to court documents, Kurchenko was sanctioned by the Department of the Treasury Office of Foreign Assets Control (OFAC) in 2015 for his role in misappropriating state assets of Ukraine or of an economically significant entity in Ukraine.
On April 13, a grand jury in the Middle District of Florida returned a 22-count indictment charging Unsalan with one count of conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act (IEEPA); 10 counts of violating IEEPA; one count of conspiring to commit international money laundering; and 10 counts of international money laundering. As set forth in court filings, between July 2018 and October 2021, Unsalan conspired with others to transfer over $150 million to Kurchenko and sanctioned companies controlled by Kurchenko. Unsalan engaged in trade with these sanctioned individuals and entities to procure steelmaking equipment and raw material despite knowing that Kurchenko and his companies were subject to U.S. sanctions that prohibited Unsalan from doing business with them. Unsalan and his business associates received tens of thousands of tons of metal products from the companies and agreed to share profits from these unlawful transactions. No licenses from OFAC were applied for or issued for these payments or transfers.
Unsalan pleaded guilty before U.S. District Judge Wendy W. Berger in Orlando, Florida, to one count of conspiracy to commit money laundering to promote violations of the IEEPA, which carries a maximum sentence of 20 years in prison. Unsalan also agreed to forfeit $160,416,948.56 in proceeds that he obtained as a result of the conspiracy. Pursuant to the terms of a plea agreement between Unsalan and the United States, the government agreed to dismiss the remaining counts of the indictment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
On Sept. 13, co-conspirator Sergey Karpushkin pleaded guilty and agreed to forfeit over $4.7 million in criminal proceeds.
The FBI Tampa and Washington Field Offices are investigating the case, with valuable assistance provided by U.S. Customs and Border Protection.
Assistant U.S. Attorney Chauncey A. Bratt for the Middle District of Florida, Trial Attorney Sean O’Dowd of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
President of Metalhouse LLC Pleads Guilty to Conspiracy to Launder over $150 Million to Promote Russian Sanctions ViolationsRead the Press Release
John Can Unsalan, aka Hurrem Can Unsalan, 41, of Orlando, the president of Metalhouse LLC, pleaded guilty today to engaging in a conspiracy to commit money laundering to promote violations of U.S. sanctions by conducting transactions to acquire over $150 million in metal products from companies owned by Sergey Kurchenko, a sanctioned oligarch.
According to court documents, Kurchenko was sanctioned by the Department of the Treasury Office of Foreign Assets Control (OFAC) in 2015 for his role in misappropriating state assets of Ukraine or of an economically significant entity in Ukraine.
On April 13, a grand jury in the Middle District of Florida returned a 22-count indictment charging Unsalan with one count of conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act (IEEPA); 10 counts of violating IEEPA; one count of conspiring to commit international money laundering; and 10 counts of international money laundering. As set forth in court filings, between July 2018 and October 2021, Unsalan conspired with others to transfer over $150 million to Kurchenko and sanctioned companies controlled by Kurchenko. Unsalan engaged in trade with these sanctioned individuals and entities to procure steelmaking equipment and raw material despite knowing that Kurchenko and his companies were subject to U.S. sanctions that prohibited Unsalan from doing business with them. Unsalan and his business associates received tens of thousands of tons of metal products from the companies and agreed to share profits from these unlawful transactions. No licenses from OFAC were applied for or issued for these payments or transfers.
Unsalan pleaded guilty before U.S. District Judge Wendy W. Berger in Orlando, Florida, to one count of conspiracy to commit money laundering to promote violations of the IEEPA, which carries a maximum sentence of 20 years in prison. Unsalan also agreed to forfeit $160,416,948.56 in proceeds that he obtained as a result of the conspiracy. Pursuant to the terms of a plea agreement between Unsalan and the United States, the government agreed to dismiss the remaining counts of the indictment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
On Sept. 13, co-conspirator Sergey Karpushkin pleaded guilty and agreed to forfeit over $4.7 million in criminal proceeds.
The FBI Tampa and Washington Field Offices are investigating the case, with valuable assistance provided by U.S. Customs and Border Protection.
Assistant U.S. Attorney Chauncey A. Bratt for the Middle District of Florida, Trial Attorney Sean O’Dowd of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
Philadelphia Resident Sentenced to Prison for Conspiracy to Distribute MarijuanaRead the Press Release
A resident of Philadelphia, PA, has been sentenced in federal court to 48 months’ imprisonment on his conviction of conspiracy to distribute marijuana, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Hector Rodriguez, age 42.
According to information presented to the court, from 2018 through 2019, Rodriguez conspired with others to traffic between 80-100 kilograms of marijuana from Philadelphia to the Western District of Pennsylvania.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Rebecca L. Silinski and Tonya Sulia Goodman prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation for the investigation leading to the successful prosecution of Rodriguez.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Pharmacy Owner and Money Launderer Plead Guilty to Multiple Fraud SchemesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty pleas of NERIK ILYAYEV and MUKHIDDIN KADIROV for their respective roles in HIV medication fraud, no-fault automobile insurance fraud, and money laundering schemes totaling over $6 million. ILYAYEV pled guilty to conspiracy to commit healthcare fraud for using two different pharmacies to defraud Medicare and Medicaid in connection with HIV medication claims and to defraud no-fault automobile insurance providers in connection with other medication claims. KADIROV laundered several million dollars in fraud proceeds in connection with the HIV fraud scheme. ILYAYEV and KADIROV pled guilty today before U.S. District Judge Gregory H. Woods.
U.S. Attorney Damian Williams said: “Nerik Ilyayev brazenly defrauded Medicare and Medicaid and New York’s no-fault automobile insurance providers of over $6 million. To execute his schemes, Ilyayev sourced pharmaceuticals from illegitimate sources and worked with others to pay kickbacks to low-income individuals. Mukhiddin Kadirov facilitated the Medicare and Medicaid fraud by laundering millions in crime proceeds through shell companies. Both Ilyayev and Kadirov went to great lengths to conceal their role in these crimes, including using the identities of other people. Ilyayev and Kadirov will now pay for their crimes, and this Office will not stop pursuing those who seek to profit by defrauding our healthcare system.”
According to the Complaint, Information, and statements made in open court:
From approximately February 2021 through March 2022, ILYAYEV owned and operated a pharmacy in Manhattan (“Pharmacy-1”). ILYAYEV used Pharmacy-1 to pay illegal kickbacks to low-income HIV patients to recruit them to fill prescriptions for expensive HIV medications at Pharmacy-1 and to obtain HIV medications from unlawful sources. ILYAYEV, on behalf of Pharmacy-1, then submitted fraudulent insurance claims to Medicare and Medicaid to cover the cost of the HIV medications. In order to conceal his role in the fraud scheme, ILYAYEV used the identity of another person (“Individual-1”) and pretended to be Individual-1 to own and operate Pharmacy-1 using Individual-1’s identity. Medicare and Medicaid collectively paid approximately $5.2 million in fraudulent claims for HIV medications to Pharmacy-1.
After shutting down Pharmacy-1, ILYAYEV took control of another pharmacy in Queens, New York (“Pharmacy-2”). Again, to conceal his role in the fraud, ILYAYEV used the identity of another person (“Individual-3”) and pretended to be Individual-3 to own and operate Pharmacy-2. Pharmacy-2 submitted fraudulent insurance claims to no-fault automobile insurance providers. Pharmacy-2 defrauded the no-fault automobile insurance providers of approximately $1.2 million. In addition, Pharmacy-2 unlawfully sold pharmaceuticals to other pharmacies that ILYAYEV had obtained from illegitimate sources.
KADIROV participated in a money laundering network that primarily launders healthcare fraud proceeds (the “Money Laundering Network”) that the Federal Bureau of Investigation (“FBI”) has been investigating since approximately 2020. Members of the Money Laundering Network typically deposit checks from healthcare companies that represent healthcare fraud proceeds into New York-based bank accounts held by shell companies. The shell companies often purport to be wholesale companies and use terms like “wholesale” in the company name to make the check deposits from the healthcare companies appear less suspicious to banks and law enforcement. The conspirators controlling the shell companies collect cash typically from U.S.-based individuals who want to remit funds, often to Uzbekistan, through unlicensed channels. The conspirators controlling the shell companies then provide that cash, minus a fee, to the conspirators providing the healthcare checks. The conspirators controlling the shell companies next typically wire the check deposit proceeds from the shell companies to Chinese or other foreign companies to purchase goods from those foreign companies. The foreign companies ship the goods to importers in Uzbekistan. The importers pay the Uzbekistan-based partners of the conspirators operating the shell companies in U.S. Currency for the goods. Those Uzbekistan-based partners would then give the U.S. currency to the families and friends of the individuals who had provided the cash to the conspirators controlling the shell companies in New York.
As part of his participation in the Money Laundering Network, KADIROV laundered approximately $4.2 million of Pharmacy-1’s fraud proceeds. KADIROV used three bank accounts in the name of three shell companies that were purportedly wholesale companies (the “Shell Companies”) to launder Pharmacy-1’s fraud proceeds. The Shell Company bank accounts were opened in the name of another person (“Individual-2”), although KADIROV controlled the bank accounts. KADIROV took other steps to conceal his role in the money laundering scheme, including using a burner phone in connection with the Shell Company bank accounts, and he concealed his face when using ATMs to conduct transactions using the Shell Company bank accounts. Pharmacy-1 deposited approximately $4.2 million in checks with the Shell Companies. Consistent with the operations of the Money Laundering Network, the Shell Companies wired most of the check deposits to companies abroad, including China, Ukraine, and Russia.
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ILYAYEV, 36, of Queens, New York, pled guilty to one count of conspiracy to commit healthcare fraud, which carries a maximum potential sentence of 10 years in prison.
KADIROV, 44, of Queens, New York, pled guilty to one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and the U.S. Department of Health and Human Services, Office of the Inspector General. Mr. Williams also thanked the National Insurance Crime Bureau and the Investigations Medicare Drug Integrity Contractor for their assistance in the investigation.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney Cecilia E. Vogel is in charge of the prosecution.
Paroled murderer going to prison for more than 24 years for production of child pornographyRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Israel Rivera-Reyes, 48, of Rochester, NY, who was convicted of production of child pornography, was sentenced to serve 292 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that between August 2021 and February 2022, Rivera-Reyes had sexual intercourse with a Minor Victim on an almost daily basis, knowing that the victim was a minor. During this time, Rivera-Reyes produced multiple videos of himself engaging in sexual intercourse with the Minor Victim. At the time of his arrest, Rivera-Reyes was on parole for a March 1995 conviction of Murder 2nd Degree.
The sentencing is a result of an investigation by the Irondequoit Police Department, under the direction of Chief Scott Peters, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia. Additional assistance was provided by the Monroe County District Attorney’s Office.
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Owners of Mobile Phlebotomy Company Each Sentenced to 15 Months in Prison for Medicare FraudRead the Press Release
SACRAMENTO, Calif. — Gabriella Santibanez, 59, and her sister Lisa Hazard, 55, both of Temecula, were sentenced Monday to 15 months in prison and ordered to pay over $7.5 million in restitution for health care fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Dec, 1, 2015, and Dec, 1, 2020, Santibanez and Hazard ran a mobile phlebotomy company, PhlebXpress Inc. that provided phlebotomy and other medical collection services at patients’ homes and long-term care facilities in Sacramento and elsewhere. Santibanez and Hazard agreed to bill Medicare for services provided that were not reimbursable by Medicare. Santibanez and Hazard also agreed to bill Medicare for overstated mileage that PhlebXpress phlebotomists traveled. On average, Santibanez and Hazard caused false billing to Medicare of over 140 miles for each patient seen by PhlebXpress. Santibanez and Hazard caused a loss to Medicare of at least $7.5 million based on false billing by PhlebXpress.
In November 2020, due to “credible allegations of fraud” at PhlebXpress, Medicare instituted a payment suspension for PhlebXpress under which Medicare ceased paying PhlebXpress for the services it continued to bill Medicare.
According to court documents, between July 1, 2021, and Dec. 31, 2021, Santibanez and Hazard agreed to circumvent the payment suspension by representing to Medicare that services provided to Medicare patients were done by another company, Phlebotomy Solutions, when they were in fact being provided by PhlebXpress through its contractors and employees from PhlebXpress’s offices. Through Phlebotomy Solutions, Santibanez and Hazard agreed to bill Medicare for a non-reimbursable service, misrepresenting that it was for another reimbursable service and overstating the mileage traveled by phlebotomists in order to receive additional money from Medicare. For example, in September 2021, Phlebotomy Solutions billed Medicare for 124.6 miles of travel by a phlebotomist when in fact the phlebotomist travelled 1.4 miles. Santibanez and Hazard caused a loss to Medicare of at least $50,000 based on false billing by Phlebotomy Solutions.
This case was the product of an investigation by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Lee Bickley prosecuted the case.
Orange County felon sentenced to 20 years in prison for kidnapping at gunpoint and possession of a firearmRead the Press Release
MIAMI – On October 2, a man was sentenced to 20 years in prison for kidnapping and two felon in possession of a firearm charges.
On August 14, 2022, Marques Deon Jones, 41, of Orange County, pistol-whipped his girlfriend, an employee of a Port St. Lucie group home located near SE Walton Road, and forced her to leave with him in her vehicle. A group home supervisor, who witnessed the kidnapping, notified Port St. Lucie Police Department, who identified Jones.
The following day, the U.S. Marshals Florida Regional Fugitive Task Force located Jones outside of a private residence in Fort Pierce and arrested him. As task force officers approached Jones, he retrieved a firearm from a parked car and attempted to flee. Footage from a law enforcement body worn camera showed Jones admitting that he retrieved the firearm because he wanted officers to shoot and kill him.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and U.S. Marshal Gadyaces S. Serralta of the U.S. Marshals Service (USMS), announced the sentence imposed by U.S. District Court Senior Judge James I. Cohn, sitting in Fort Pierce.
ATF Fort Pierce Field Office and USMS investigated the case with assistance from the St. Lucie County Sheriff’s Office, Port St. Lucie Police Department and Fort Pierce Police Department. Assistant U.S. Attorneys Breezye Telfair and Justin Hoover prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-14069.
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Operators and Attorney of Global Multimillion-Dollar Cryptocurrency Ponzi Scheme “AirBit Club” Sentenced to PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SCOTT HUGHES, CECILIA MILLAN, and KARINA CHAIREZ were sentenced today for their roles in an internationally coordinated fraud and money laundering ring that deceived individuals into investing in AirBit Club, a purported cryptocurrency mining and trading company that was, in reality, a pyramid scheme. HUGHES, an attorney who laundered approximately $18 million in AirBit Club fraud proceeds, was sentenced to 18 months in prison. MILLAN, a senior level promoter of AirBit Club, was sentenced to five years in prison. CHAIREZ, another senior level promoter of AirBit Club, was sentenced to one year and one day in prison. On September 26, 2023, PABLO RENATO RODRIGUEZ, co-founder of AirBit Club with GUTEMBERG DOS SANTOS, was sentenced to 12 years in prison. As part of their guilty pleas, the defendants in this case collectively have been ordered to forfeit their fraudulent proceeds of AirBit Club, which include seized or restrained assets consisting of U.S. currency, Bitcoin, and real estate currently valued at approximately $100 million. U.S. District Judge George B. Daniels imposed the sentences.
U.S. Attorney Damian Williams said: “Hughes, Millan, and Chairez each played a key role in perpetuating the AirBit Club pyramid scheme. At the top-tier of promoters, Millan and Chairez for years aggressively solicited investments from and misled hardworking and unsophisticated investors to line their own pockets. Hughes abused his position as an attorney to launder millions in AirBit Club fraud proceeds and to give AirBit Club the false appearance of legality. Pyramid schemes like AirBit Club would not be possible without facilitators like Hughes, Millan, and Chairez. Today’s sentences send a message that anyone who facilitates cryptocurrency investment schemes — not only those at the very top of the pyramid — will face serious consequences for such crimes.”
According to public court filings and statements made in Court:
RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, and CHAIREZ participated in a coordinated scheme in which victim-investors (the “Victims”) were induced to invest in AirBit Club based on the false promise of guaranteed profits in exchange for cash investments in club “memberships” (the “AirBit Club Scheme” or the “Scheme”). Beginning in late 2015, AirBit Club, through its founders, RODRIGUEZ and DOS SANTOS, as well as its promoters (the “Promoters”), including MILLAN and CHAIREZ, marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry. Promoters falsely promised Victims that AirBit Club earned returns on cryptocurrency mining and trading and that Victims would earn passive, guaranteed daily returns on any membership purchased.
RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, and CHAIREZ traveled throughout the United States and around the world to places in Latin America, Asia, and Eastern Europe, where they hosted lavish expos and small community presentations aimed at convincing Victims to purchase AirBit Club memberships. In furtherance of the AirBit Club Scheme, the Victims were fraudulently induced to buy memberships in cash, including in the Southern District of New York. Following a Victim’s investment, a Promoter provided the Victim with access to an online AirBit Club portal to view the purported returns on memberships (the “Online Portal”). While Victims saw “profits” accumulate on their Online Portal, those representations were false; no Bitcoin mining or trading on behalf of Victims in fact took place. Instead, RODRIGUEZ, DOS SANTOS, MILLAN, and CHAIREZ enriched themselves and spent Victim money on cars, jewelry, and luxury homes, and financed more extravagant expos to recruit more Victims.
HUGHES, an attorney licensed to practice law in California, had previously represented RODRIGUEZ and DOS SANTOS in a Securities and Exchange Commission (“SEC”) investigation related to another investment scheme known as Vizinova. He then aided RODRIGUEZ and DOS SANTOS in perpetrating the AirBit Club Scheme by, among other things, helping to remove negative information about AirBit Club and Vizinova from the internet.
In many instances, as early as 2016, Victims who attempted to withdraw money from the AirBit Club Online Portal and complained to a Promoter were met with excuses, delays, and hidden fees amounting to more than 50% of the Victim’s requested withdrawal, if they were able to make any withdrawal at all. In April 2020, another victim received a notice on the AirBit Club Online Portal that his account was closed – and principal investment lost – due to “execution of financial sustainability Reserve, policy #34 of the AirBit Club Terms and Conditions, due to the economic and financial crisis caused by (Covid-19).”
RODRIGUEZ, DOS SANTOS, HUGHES, CHAIREZ, and MILLAN sought to conceal the AirBit Club Scheme, as well as their respective control of the proceeds of that Scheme, by requesting that Victims purchase memberships in cash, using third-party cryptocurrency brokers, and by laundering the Scheme’s proceeds through several domestic and foreign bank accounts, including an attorney trust account managed by HUGHES (the “Hughes Trust Account”). The Hughes Trust Account was ostensibly intended to maintain custody of HUGHES’s law practice’s client funds. Instead, the Hughes Trust Account was used by RODRIGUEZ, DOS SANTOS, HUGHES, CHAIREZ, and MILLAN to conceal the nature and origin of the AirBit Club Scheme’s illicit proceeds. Through that account, HUGHES directed Victim funds to the personal expenses of RODRIGUEZ, DOS SANTOS, CHAIREZ, MILLAN, and himself, and funded promotional events and sponsorships designed to further promote the AirBit Club Scheme.
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HUGHES, 47, of Newport Beach, California, was also sentenced to three years of supervised release. MILLAN, 41, of Greensboro, North Carolina, was also sentenced to three years of supervised release. CHAIREZ, 47, of Modesto, California, was also sentenced to three months of supervised release.
DOS SANTOS, 48, of Panama City, Panama, has pled guilty to charges including wire fraud conspiracy, which carries a maximum potential sentence of 20 years in prison; money laundering conspiracy, which carries a maximum potential sentence of 20 years in prison; and bank fraud conspiracy, which carries a maximum potential sentence of 30 years in prison.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as the sentencing will be determined by the judge. DOS SANTOS is scheduled to be sentenced on October 4, 2023, at 11:00 a.m.
Mr. Williams praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force. Mr. Williams further thanked the New York Waterfront Commission for its assistance in the forfeiture process and the attorneys and investigators at the SEC whose expertise and diligence were integral to the development of this investigation.
If you believe you are a victim of the AirBit Club fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator, is available here. The U.S. Attorney’s Office will contact victims who have previously contacted the victim witness coordinator regarding the restitution process.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Kiersten A. Fletcher, Samuel L. Raymond, and Cecilia E. Vogel are in charge of the prosecution.
Omaha Man Sentenced for Distributing MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Justin Britthouer, 36, formerly of Omaha, Nebraska, was sentenced today in Lincoln, Nebraska, by Senior United States District Judge John M. Gerrard for possession of methamphetamine with intent to distribute. Britthouer was sentenced to 132 months in prison and will also serve 5 years on supervised release. There is no parole in the federal system.
On August 13, 2022, Britthouer was stopped for erratic driving by the Beatrice Police Department. While performing standardized field sobriety tests, Britthouer admitted there were drugs in the vehicle he had been driving. The resulting search of the vehicle located three bags of methamphetamine. The methamphetamine was tested by the Nebraska State Patrol Crime Lab, which confirmed it was methamphetamine. The total amount seized was at least 68 grams pure methamphetamine. Britthouer admitted to distributing drugs in southeast Nebraska during an interview and was arrested.
This case was investigated by the Beatrice Police Department.
Northeast Georgian Sentenced to 20 Years in Prison for Distributing Child Sexual Abuse MaterialRead the Press Release
ATHENS, Ga. –A Madison County, Georgia, resident convicted by a federal jury of distributing and possessing child sexual abuse material (CSAM) days after GBI investigators discovered evidence that he was continuing to distribute CSAM and had concurrently cut off his ankle monitor to escape custody was sentenced to serve 20 years in prison.
Christopher Snow, 36, of Carlton, Georgia, was sentenced to serve 240 months in prison to be followed by ten years of supervised release by U.S. District Judge Tilman E. Self, III today after he was convicted on June 7 of one count of distribution of child sexual abuse material and one count of possession of child sexual abuse material following a two-day trial. Snow will have to register as a sex offender upon release from federal prison. The defendant is not eligible for parole.
“Individuals participating in any part of the appalling online world of sexually abusing children—its creation, distribution or possession—will be held to account for these crimes which profoundly harm kids,” said U.S. Attorney Peter D. Leary. “This case, like so many others our office works, was successfully adjudicated thanks to the collaboration of many different groups and agencies focused on protecting children and bringing predators to justice.”
“This case serves as a strong reminder of our commitment to protecting children from the atrocities of child sexual abuse. The GBI remains resolute in its pursuit of justice and will not tolerate those who exploit the innocence of our most vulnerable population,” said GBI Director Chris Hosey.
“Snow not only distributed the disturbing material for years but didn’t stop even after he was under arrest and facing trial,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “We will continue to work with our law enforcement partners to ensure that people like this receive their full measure of justice.”
According to court documents and evidence presented at trial, GBI received a Cybertip from the National Center for Missing and Exploited Children (NCMEC) in Aug. 2018 that a Facebook user distributed suspected CSAM via Facebook Messenger. As a part of their investigation, GBI was able to determine that the user of that Facebook account resided in Carlton, Madison County, Georgia. A search warrant was executed at Snow’s residence in Carlton; law enforcement seized several electronic devices that Snow kept in a padlocked room. A digital forensic examiner later determined that those electronic devices, including the phone that was found on Snow the day of the search warrant, contained at least 45 images and 17 videos of CSAM. The material contained images of children under the age of 12.
As a condition of Snow’s pretrial release, he was required to wear an ankle monitor and not have access to electronic devices. On June 1, 2023, GBI received an additional Cybertip indicating that Snow may have been continuing to distribute CSAM on the Kik messenger app in 2022, while awaiting trial. Snow was scheduled for a federal hearing on June 2 prior to his trial but cut off his ankle monitor on June 1. A bench warrant was issued for his arrest, and he was taken into custody by the U.S. Marshals on June 5.
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 www.projectsafechildhood.gov.
The case was investigated by the GBI, with assistance from the FBI, the U.S. Marshals Service and the National Center for Missing and Exploited Children.
Assistant U.S. Attorneys Alex Kalim and Robert McCullers prosecuted the case for the Government with assistance from Deputy Criminal Chief Will Keyes.
Mexican national sentenced to 27 years in federal prison for East Texas drug trafficking violationsRead the Press Release
SHERMAN, Texas – A Mexican national has been sentenced to 27 years in federal prison for trafficking drugs through the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Fernando Alfredo Rodriguez-Reyes, 29, pleaded guilty to conspiracy to distribute meth, heroin and cocaine, and conspiracy to commit money laundering and was sentenced to 324 months in federal prison today by U.S. District Judge Amos L. Mazzant.
According to information presented in court, on June 18, 2020, Rodriguez-Reyes was arrested when law enforcement agents executed a search warrant at a residence on Lytham Drive in Dallas. The residence had been identified as a money and drug stash house distributing multi-kilogram quantities of cocaine, methamphetamine, and heroin in the Dallas, Lewisville, McKinney, Carrollton, Fort Worth, and Plano areas. During the investigation it was discovered the drugs were sourced by a party in Mexico, with ties to the Sinaloa Cartel, and shipped from Mexico, to California, and eventually to the greater Dallas area.
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.
The case was investigated by the Drug Enforcement Administration in Dallas and prosecuted by Assistant U.S. Attorney Ernest Gonzalez.
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Mexican National Sentenced to Federal Prison for Bribing HSI AgentRead the Press Release
EL PASO, Texas – A Mexican national residing in Seminole was sentenced in a federal court in El Paso Monday to 12 months in prison for bribery of a Homeland Security Investigations (HSI) agent.
According to court documents, Pedro Thiessen, 71, failed to declare $12,171 when entering the United States at the Ysleta Port of Entry in October 2022. Thiessen filed a petition to recover the funds and was interviewed by an HSI agent in January regarding the petition. Thiessen offered to pay the agent an unknown amount of money if the agent assisted with the recovery. The agent reported the offer to the Immigration and Customs Enforcement (ICE) Office of Professional Responsibility (OPR).
Thiessen again proposed a monetary offer to the agent during a phone call on Feb. 6. On Feb. 15, the agent arranged a meeting with Thiessen for the following day. Thiessen presented the agent with $1,000 at that meeting and was immediately arrested.
Thiessen pleaded guilty on July 7 to one count of paying a bribe to a public official.
“I appreciate the integrity and dedication of the HSI agent involved to report the bribe and lead us to the arrest of this defendant,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “We will prosecute and hold accountable anyone who offers a bribe to the honorable federal law enforcement officers serving in this district.”
“Homeland Security Investigations takes all bribery attempts of its employees extremely seriously,” said Special Agent in Charge Francisco B. Burrola for the HSI El Paso Division. “In this case, an individual offered a monetary bribe to one of our special agents in return for assistance in recovering thousands of dollars he attempted to smuggle into the country. As a result, he is facing time in prison.”
HSI and ICE OPR investigated the case.
Assistant U.S. Attorney Michael Osterberg prosecuted the case.
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Memphis man sentenced to 16 years in federal prison for series of robberiesRead the Press Release
Memphis, TN – A federal judge has issued a sentence of 16 years in federal prison to the second of two people involved in a series of armed robberies in October 2021. Memphis resident Marshall Marshall, 21, was sentenced to 192 months in federal prison for his role in a carjacking, an attempted carjacking, and robbery of a local business. U.S. District Court Judge Sheryl H. Lipman also ordered Marshall to serve three years of supervised release upon completion of his prison term. United States Attorney Kevin Ritz announced the sentencing today.
There is no parole in the federal system.
Marshall’s co-defendant, Khavah Levy, 19, was sentenced on June 29 to 96 months in prison after previously pleading guilty to aiding and abetting Marshall in the commission of the business robbery and attempted carjacking. Judge Lipman also ordered that Levy serve three years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Memphis Police Department Safe Streets Task Force.
According to information presented in court, Marshall and Levy engaged in a series of robberies in October 2021.
- On October 2, Marshall ordered a victim out of his vehicle and stole $145 in cash from him.
- Later that day, Marshall pointed a gun at a convenience store clerk and, with Levy’s help, stole $500 from the cash register.
- On October 3, the pair attempted to carjack another victim at gunpoint while that person was parked at a local grocery store.
Assistant United States Attorney Raney Irwin prosecuted this case for the United States.
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.
Martinsville Man Convicted of Trafficking Methamphetamine and CocaineRead the Press Release
ABINGDON, Va. – A Martinsville man, who possessed crystal ice methamphetamine and cocaine valued at more than $35,000, was found guilty last week following a three-day jury trial in federal court.
Octavius Myron Johnson, 39, was convicted of one count of possessing with the intent to distribute 50 grams or more of a mixture and substance containing methamphetamine, in addition to one count of possessing with the intent to distribute cocaine.
According to evidence presented at trial, in early 2023, law enforcement initiated an investigation into Johnson’s drug trafficking activities in the Glade Spring area of Washington County. Their investigation led to the execution of a search warrant at Johnson’s Martinsville residence, where over a half pound of crystal ice methamphetamine—totaling 9.7 ounces—and 83.5 grams of cocaine were recovered. Cash totaling $3,800 and other items related to drug trafficking were also seized.
Johnson is scheduled for sentencing on January 17, 2023, where he faces a mandatory minimum sentence of imprisonment of 5 years and a maximum statutory penalty of up to 40 years in prison and a fine of up to $5 million.
United States Attorney Christopher R. Kavanaugh, Virginia Attorney General Jason Miyares, and Jared Forget, Special Agent in Charge of the Drug Enforcement Administration’s Washington Division made the announcement.
The investigation of this case was conducted by the Drug Enforcement Administration, the Washington County Sheriff’s Office, and the Holston River Regional Drug Task Force, with assistance from numerous agencies including the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Henry County Sheriff’s Office, the Martinsville Police Department, the Smyth County Sheriff’s Office, and the Virginia State Police.
Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, and Assistant U.S. Attorney Kelly McGann prosecuted the case.
Los Angeles Man Sentenced to over 8 Years in Prison for Scheme to Fraudulently Obtain over $800,000 in COVID Relief FundsRead the Press Release
LOS ANGELES – A San Fernando Valley man who was the leader of a conspiracy that stole more than $800,000 in COVID-19 jobless benefits has been sentenced to 97 months in federal prison, the Justice Department announced today.
Robert Mirumyan, 31, of Porter Ranch, was sentenced by United States District Judge Percy Anderson, who also ordered him to pay $804,579 in restitution.
Mirumyan pleaded guilty in June to one count of conspiracy to commit bank fraud, admitting that he oversaw a scheme that used stolen identities to apply for COVID-era unemployment insurance (UI) benefits from the California Employment Development Department (EDD).
Mirumyan came to the attention of law enforcement when the FBI executed search and seizure warrants in March 2021 against the Beverly Hills-based U.S. Private Vaults, where investigators discovered a safety deposit box held in the name of Mirumyan’s wife that contained $400,000 in cash. U.S. Private Vaults, a private safety deposit box company that advertised it was not subject to bank “know your customer” rules, pleaded guilty in 2022 to conspiring to launder money with its customers.
During 2020 and continuing through August of 2021, Mirumyan and others used other people’s identities to apply for UI benefits through the EDD, according to court documents. Once EDD approved the false and fraudulent UI applications, banks issued debit cards containing the funds intended for the false identities, Mirumyan and others used the fraudulently obtained debit cards to withdraw cash.
“When confronted with the COVID pandemic that has claimed the lives of almost 7 million persons worldwide to date, [Mirumyan] instead saw an opportunity to bilk taxpayers out of the emergency funds their government generously made available to ameliorate job losses,” according to a sentencing memorandum filed in this case. “Such criminal opportunism during a global health and economic emergency is egregious.”
Judge Anderson described Mirumyan’s offense as “galling” and “callous,” noting that the defendant took advantage of benefits meant to help the unemployed even while he had the talent and opportunities to earn money legitimately.
“[I]t appears that [Mirumyan] made a decision to pursue riches through fraud rather than to participate in the legitimate economy,” prosecutors wrote in the sentencing memo. “Worse, his choice paid off, at least until his stash of $400,000 in cash was accidentally discovered at U.S. Private Vaults based on an unrelated investigation of that business. [Mirumyan] was able to support himself and his family, purchasing a million-dollar home with a swimming pool with his criminal income.”
This matter was investigated by the Postal Inspection Service and the California Employment Development Department.
Assistant United States Attorney Andrew Brown of the Major Frauds Section prosecuted this case.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Leader of $20M COVID-19 relief fraud ring sent to prisonRead the Press Release
HOUSTON –The head of a multimillion-dollar COVID-19 relief fraud ring and six of his co-conspirators have been sentenced for fraudulently obtaining more than $20 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Amir Aqeel, 54, Houston, was sentenced Oct. 2 to 15 years in prison for leading the conspiracy and at least 14 other individuals to submit more than 75 fraudulent PPP loan applications in 2020. In the applications, they falsified the number of employees and the average monthly payroll expenses of the applicant businesses and submitted fraudulent bank records and/or fake federal tax forms in support of the PPP loan applications. Some were paid large kickbacks in exchange for their assistance with the false and fraudulent PPP loan applications.
“Amir Aqeel engaged in one of the largest PPP conspiracies in the country,” said U.S. Attorney Alamdar S. Hamdani. “He and his cohorts stole millions from the public fund, using that money to buy houses, a Porsche, even a Lamborghini, all while taking advantage of programs intended to help those struggling during the pandemic. These sentences send a strong message to scammers looking for a quick and easy buck in the Southern District of Texas; you need to look elsewhere.”
“During a time of unprecedented national peril, these defendants took advantage of a pandemic and stole millions of dollars in federal funds intended to help businesses keep their employees paid and their doors open,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The sentences demonstrate that the Department and law enforcement have and will continue to hold individuals accountable for committing fraud on the government.”
“I salute the prosecutors and agents who exposed this fraud ring, brought these defendants to justice, and worked to return stolen funds to the American people,” said Justice Department Director of COVID-19 Fraud Enforcement Michael Galdo. “The Department will continue to work with our law enforcement partners to bring those who committed pandemic benefit fraud to justice and use all appropriate tools to recover stolen pandemic relief funds.”
The conspirators also laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. These fake paychecks were cashed at Fascare International Inc. dba Almeda Discount Store (Almeda), a company Azeemuddin owned. In total, more than 1,100 fake paychecks for more than $3 million in fraudulent PPP loan proceeds were cashed at Almeda.
“SBA-OIG will aggressively root out bad actors in SBA’s pandemic response programs and bring them to justice,” said Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA-OIG) Central Region. “These sentences demonstrate there are significant consequences for conspiring to fraudulently access SBA programs and steal from taxpayers. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
“One unfortunate aspect of the pandemic relief programs has been how many people and institutions, including the Federal Home Loan Banks, were negatively affected by unscrupulous criminals who targeted a program meant to help all Americans at a critical time,” said Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General’s (FHFA-OIG) Central Region. “We are proud to work with our partner agencies to investigate and stamp out these schemes.”
“While the rest of our country was reeling from the effects of an unprecedented global health crisis, these individuals conspired to fraudulently obtain and launder millions of taxpayer dollars from an emergency fund that was intended to help keep struggling businesses and employees afloat,” said Special Agent in Charge Mark Dawson, Homeland Security Investigations (HSI) Houston. “Working in conjunction with our federal law enforcement partners, we were able to uncover their scheme and hold them accountable for exploiting these government programs for their own profit.”
Federal agents also executed 45 seizure warrants in conjunction with the case and have seized, among other items, a residence, a Porsche and a Lamborghini purchased with illegally obtained funds.
“Today, Aqeel and six of his co-conspirators in this case were brought to justice for their roles in a fraudulent scheme that swindled millions of dollars from the Paycheck Protection Program, which was created to assist struggling businesses during the COVID-19 pandemic,” said Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Dallas Region. “The FDIC-OIG, working with our law enforcement partners, will continue to pursue and hold accountable those who took advantage of these programs and threatened to undermine the integrity of our nation’s banking system.”
“The Treasury Inspector General for Tax Administration continues to aggressively pursue those who endeavor to defraud programs afforded to the American people under the CARES Act,” said Special Agent in Charge Gary Smith of the Treasury Inspector General for Tax Administration (TIGTA) Gulf States Field Division. “We appreciate the efforts of the Justice Department and our law enforcement partners in this effort.”
Five others had previously pleaded guilty and were sentenced today for their roles in the loan fraud scheme. Khalid Abbas, 57, Richmond, and Richard Reuth, 60, Spring, both received two and a half years in prison, while Rifat Bajwa, 54, Richmond, Siddiq Azeemuddin, 44, Naperville, Illinois, and Pardeep Basra, 54, Houston, were sentenced to three years, two years and three years and five months in prison, respectively.
A federal jury convicted Abdul Fatani, 57, Richmond, of one count of conspiracy to commit wire fraud, one count of wire fraud and one count of money laundering in February. He was sentenced to three years in prison.
The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG and TIGTA are investigating the cases.
Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson are prosecuting the cases along with Trial Attorneys Louis Manzo, Della Sentilles, Kate McCarthy and Spencer Ryan of the Criminal Division’s Fraud Section.
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 www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Leader of $20M COVID-19 Relief Fraud Ring Sentenced to 15 YearsRead the Press Release
The head of a multimillion-dollar COVID-19 relief fraud ring and six of his co-conspirators were sentenced for fraudulently obtaining more than $20 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Amir Aqeel, 54, of Houston, was sentenced yesterday to 15 years in prison and ordered to forfeit $5,583,111.48 for leading the conspiracy, and for conspiring with at least 14 other individuals to submit 75 fraudulent PPP loan applications in 2020. In the applications, the defendants falsified the number of employees and the average monthly payroll expenses of the applicant businesses and submitted fraudulent bank records and fake federal tax forms in support of the PPP loan applications. Aqeel paid some of the defendants large kickbacks in exchange for their assistance with the false and fraudulent PPP loan applications.
“During a time of unprecedented national peril, these defendants took advantage of a pandemic and stole millions of dollars in federal funds intended to help businesses keep their employees paid and their doors open,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The sentences demonstrate that the Department and law enforcement have and will continue to hold individuals accountable for committing fraud on the government.”
“I salute the prosecutors and agents who exposed this fraud ring, brought these defendants to justice, and worked to return stolen funds to the American people,” said Director of COVID-19 Fraud Enforcement Michael Galdo of the Justice Department. “The Department will continue to work with our law enforcement partners to bring those who committed pandemic benefit fraud to justice and use all appropriate tools to recover stolen pandemic relief funds.”
“Amir Aqeel engaged in one of the largest PPP conspiracies in the country,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “He and his cohorts stole millions from the public fund, using that money to buy houses, a Porsche, even a Lamborghini, all while taking advantage of programs intended to help those struggling during the pandemic. These sentences send a strong message to scammers looking for a quick and easy buck in the Southern District of Texas; you need to look elsewhere.”
The defendants also laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. The defendants cashed these fake paychecks at Fascare International Inc., dba Almeda Discount Store (Almeda), a company that Siddiq Azeemuddin owned. In total, the defendants cashed more than 1,100 fake paychecks for more than $3 million in fraudulent PPP loan proceeds at Almeda.
“SBA-OIG will aggressively root out bad actors in SBA’s pandemic response programs and bring them to justice,” said Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA-OIG) Central Region. “These sentences demonstrate there are significant consequences for conspiring to fraudulently access SBA programs and steal from taxpayers. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
“One unfortunate aspect of the pandemic relief programs has been how many people and institutions, including the Federal Home Loan Banks, were negatively affected by unscrupulous criminals who targeted a program meant to help all Americans at a critical time,” said Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General’s (FHFA-OIG) Central Region. “We are proud to work with our partner agencies to investigate and stamp out these schemes.”
“While the rest of our country was reeling from the effects of an unprecedented global health crisis, these individuals conspired to fraudulently obtain and launder millions of taxpayer dollars from an emergency fund that was intended to help keep struggling businesses and employees afloat,” said Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) Houston. “Working in conjunction with our federal law enforcement partners, we were able to uncover their scheme and hold them accountable for exploiting these government programs for their own profit.”
Federal agents also executed 45 seizure warrants in conjunction with the case and have seized, among other items, a residence, a Porsche, and a Lamborghini purchased with illegally obtained funds.
“Today, Aqeel and six of his co-conspirators in this case were brought to justice for their roles in a fraudulent scheme that swindled millions of dollars from the Paycheck Protection Program, which was created to assist struggling businesses during the COVID-19 pandemic,” said Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Dallas Region. “The FDIC-OIG, working with our law enforcement partners, will continue to pursue and hold accountable those who took advantage of these programs and threatened to undermine the integrity of our nation’s banking system.”
“The Treasury Inspector General for Tax Administration continues to aggressively pursue those who endeavor to defraud programs afforded to the American people under the CARES Act,” said Special Agent in Charge Gary Smith of the Treasury Inspector General for Tax Administration (TIGTA) Gulf States Field Division. “We appreciate the efforts of the Justice Department and our law enforcement partners in this effort.”
Five others had previously pleaded guilty and were sentenced today for their roles in the loan fraud scheme. Khalid Abbas, 57, and Rifat Bajwa, 54, both of Richmond, Texas, were sentenced to two and a half years and three years in prison, respectively. Azeemuddin, 44, of Naperville, Illinois, was sentenced to two years in prison. Pardeep Basra, 54, of Houston, was sentenced to three years and five months in prison. Richard Reuth, 60, of Spring, Texas, was sentenced to two and a half years in prison.
In February, a federal jury convicted Abdul Fatani, 57, of Richmond, Texas, of one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of money laundering. He was sentenced today to three years in prison.
The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG, and TIGTA are investigating the cases.
Trial Attorneys Louis Manzo, Della Sentilles, Kate McCarthy, and Spencer Ryan of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson for the Southern District of Texas are prosecuting the cases.
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 www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Lakewood Man Sentenced to Prison for Ponzi SchemeRead the Press Release
CLEVELAND – Paul Kimmins Lebo, 41, of Lakewood, Ohio, was sentenced today to 48 months of imprisonment by U.S. District Judge Charles E. Fleming after he earlier pleaded guilty to wire fraud in connection to a Ponzi scheme. Judge Fleming also sentenced Lebo to pay $635,000 in restitution and serve 3 years of supervised release.
According to court documents, from August 2017 through October 2021, Paul Lebo persuaded nearly 100 individuals to invest in his non-operational hedge fund, promising them future equity ownership and options trading strategies with assurances that their investments were protected and any deposits would be fully refundable. He also convinced them to provide short-term loans by giving false explanations about why he needed the loans and false assurances about his ability to repay. Instead, Lebo used the money for personal expenses, bad stock market trades, unsuccessful attempts to acquire real estate, and to repay earlier investors. Throughout the scheme, Lebo provided the victims bogus updates about the status of their investments to get victims to invest more. At times he would use new investor funds or his parents’ money to repay the victims or write “refund” checks from accounts that contained insufficient funds.
In addition to his fraudulent hedge fund scheme, Lebo also defrauded multiple people over the internet by offering items for sale without intending to deliver them. Instead, he used the payments from the “sales” to repay his hedge fund investors or make stock trades that ultimately resulted in the total loss of the funds.
The investigation was conducted by the FBI. The case was prosecuted by Assistant United States Attorney Erica Barnhill.
Kanawha County Woman Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
CHARLESTON, W.Va. – Brittany King, 34, of East Bank, pleaded guilty today to wire fraud and aggravated identity theft. King admitted that she fraudulently obtained $176,118.73 through her employment with a business that cleaned local office space.
According to court documents and statements made in court, from approximately December 2020 through at least December 1, 2022, King unlawfully obtained the personal identification information of multiple individuals through the access provided by the cleaning service that employed her. King and a co-defendant then used that personal information to reroute victims’ mail to King’s address in Charleston. Once mail was rerouted, King and the co-defendant would open lines of credit and bank accounts and obtain loans and credit cards.
King admitted to using the unlawfully obtained personal identification information of one victim to submit a fraudulent online Change of Address form to the United States Postal Service as part of her scheme on June 6, 2022. King further admitted that she fraudulently used another victim’s personal identification information to purchase a 2020 Chevrolet Malibu from a Charleston business on September 30, 2022. King and the co-defendant caused a loss of at least $176,118.73 to more than ten victims as a result of their fraudulent schemes.
King is scheduled to be sentenced on February 6, 2024, and faces a maximum penalty of 22 years in prison, three years of supervised release, and a $500,000 fine. King also owes $176,118.73 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Inspection Service, the United States Secret Service, the United States Department of Homeland Security-Homeland Security Investigations (HSI), the U.S. Department of Veterans Affairs Office of Inspector General, and the Kanawha County Sheriff’s Office.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorneys Andrew D. Isabell and Jonathan T. Storage are prosecuting the case, and Assistant United States Attorney Kathleen Robeson provided substantial assistance.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-14.
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Kanawha County Straw Purchaser Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Sean Anthony Iacono, 30, of Dunbar, pleaded guilty today to making false statements in acquisition of firearms.
According to court documents and statements made in court, on May 8, 2021, Iacono purchased a Glock model 23 GEN5 .40-caliber pistol at a Cross Lanes business. Iacono admitted that he falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 that he was the buyer of the firearm when he knew he was purchasing it for someone who was prohibited from possessing firearms.
Iacono further admitted to falsely certifying on the ATF Form 4473 that he was the buyer of a Taurus model GX4 9mm pistol when he purchased it at a South Charleston business for someone who was prohibited from possessing firearms.
Iacono is scheduled to be sentenced on January 3, 2024, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Troy D. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-66.
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Kanawha County Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Andre Leavell Pardue Jr., 35, of Nitro, was sentenced today to three years and five months in prison, to be followed by three years of supervised release, for possession with intent to distribute fentanyl.
According to court documents and statements made in court, on June 16, 2020, law enforcement officers executed a search warrant at Pardue’s residence. Officers found a bag of fentanyl and cash in a pair of pants in Pardue’s bedroom, a Smith & Wesson model M&P 9 9mm pistol under Pardue’s bed. Officer also found a safe that contained cash, a second bag of fentanyl and a Smith & Wesson model M&P 40 Shield .40-caliber pistol.
Pardue admitted to possessing the fentanyl found in his pants. Pardue further admitted that he intended both to sell and use the fentanyl found in the safe. Pardue also admitted that the cash found in his pants and the safe totaled $3,020 and was proceeds from his fentanyl sales, with a portion of the money intended for his drug supplier.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT) and the invaluable assistance provided by the West Virginia State Police.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorneys Nowles Heinrich and Andrew D. Isabell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-124.
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