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11 September 2023
U.S. Attorney Sellinger to Hold Fourth Town HallRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger and members of his staff will meet with residents in Trenton next week at the fourth in a series of planned town hall meetings. The town hall series is one initiative of U.S. Attorney Sellinger to engage directly with citizens’ concerns and ultimately to improve public safety in New Jersey.
The town hall will be held on Tuesday, Sept. 12, 2023, doors opening at 6:00 p.m., with the program beginning promptly at 6:30 p.m. and running until 8:30 p.m. at the Greater Mt. Zion AME Church, 42 Pennington Ave., Trenton, New Jersey, 08618. U.S. Attorney Sellinger and members of his staff will discuss the work of his office in a variety of areas, including federal civil rights enforcement, bias and hate crimes, environmental justice, violent crime, opioid-related crime, and post-incarceration programs.
This is a community event and is open to the public.
Two Jamestown Men Plead Guilty for Their Roles in Heroin/Fentanyl ConspiracyRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Justin Yuchnitz, 29, and Brandon Andino, 38, both of Jamestown, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo for their roles in a Jamestown drug conspiracy. Yuchnitz pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, heroin and fentanyl, and faces a maximum penalty of 20 years in prison and a fine up to $1,000,000. Andino pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of fentanyl, and faces a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that defendant Yuchnitz sold heroin and fentanyl that he received from co-defendant Joseph Zaso, utilizing electronic media, such as Facebook and CashApp, to carry out his drug trafficking activities. For example, in February 2021, he utilized his CashApp account to pay $2000 to Zaso to cover his drug debts. During the conspiracy, defendant Andino distributed large amounts of heroin and fentanyl that he also received from Joseph Zaso. Andino also distributed heroin and fentanyl on behalf of Zaso to Zaso’s associates and customers.
Co-defendants Brian Cessna, Denver Komenda, and Richard Philbrick were previously convicted. Co-defendants Joseph Zaso and Kyle Lewis are scheduled to go to trial in February 2024.
This effort 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.
The sentencings are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Jamestown Police Department, under the direction of Chief Timothy Jackson, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James B. Quattrone.
Yuchnitz is scheduled to be sentenced on January 5, 2024, at 9:30 a.m., which Andino is scheduled to be sentenced on January 8, 2024, at 9:30 a.m., both before Judge Vilardo.
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Tucson Man Sentenced to 10 Years for Possession of Child Sex Abuse MaterialRead the Press Release
TUCSON, Ariz. – Kyle Adam Haney, 60, of Tucson, Arizona, was sentenced by United States District Judge John C. Hinderaker on August 31, 2023, to 120 months in prison. Haney pleaded guilty on October 6, 2022, to one count of Possession of Child Pornography. When Haney is released from prison, he will be on supervised release for the remainder of his life and will be required to register as a sex offender.
Haney was identified in connection with an investigation into the production of child sex abuse material by the Federal Bureau of Investigation. In the course of that investigation, agents discovered communications by Haney about sharing sexually explicit images of prepubescent children. Agents subsequently searched Haney’s phone pursuant to a search warrant and discovered several sexually explicit images of minor children which included infants and toddlers.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorneys Carin C. Duryee and Scott A. Turk, District of Arizona, Tucson, handed the prosecution.
CASE NUMBER: CR 21-02970-TUC-JCH
RELEASE NUMBER: 2023-135_Haney# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Three Memphis Men Plead Guilty in Series of Carjackings, KidnappingsRead the Press Release
Memphis, TN – All three men responsible for a series of violent carjackings and kidnappings that occurred over last year’s holiday season have pled guilty to the charges against them. Adrian Pegues, 19, Malik Malone, 18, and Alan Key, 20, all of Memphis, have each pled guilty in federal court to a series of violent events that occurred in December 2022 in Memphis and Germantown. Pegues and Key also pled guilty to an additional carjacking that occurred in Memphis in July 2022. United States Attorney Kevin G. Ritz announced the changes of plea today.
According to U.S. Attorney Ritz and information presented in court, on December 20, 2022, Pegues and Malone carjacked and kidnapped two individuals separately, and forced them at gunpoint to withdraw money from ATMs. The facts of those incidents are as follows:
- The two men kidnapped and carjacked the first victim from her driveway in East Memphis. They forced her to drive her vehicle to an ATM at First Citizens National Bank in Arlington, TN and withdraw money from her bank account. After they forced her to drive around looking for another ATM, they eventually returned to the same ATM and again forced her to withdraw money.
- Pegues and Malone then ordered the first victim to follow another vehicle into an apartment complex in Cordova, TN, where they kidnapped and carjacked a second victim, again at gunpoint.
- Pegues and Malone split up and attempted to force the victims to withdraw more money from ATMs. Eventually, both Pegues and Malone ordered the victims to drop them off in Memphis and they fled.
On December 30, 2022, Pegues, Malone, and Alan Key attempted to kidnap a person at the Saddle Creek shopping center in Germantown with the intent to commit another robbery.
- The trio parked next to the victim’s vehicle and waited as she exited a store and approached her vehicle.
- As the victim opened her door, Pegues and Malone bumped the victim with their car door, ordered her to get in the vehicle, and tried to get into her vehicle.
- The victim struggled with Pegues and Malone. An armed private citizen saw what was occurring and intervened. When confronted, the men got back into their vehicle and escaped.
Additionally, investigators determined that Pegues and Key committed another carjacking in Memphis on July 25, 2022. During this carjacking, Pegues was armed with a firearm. Both Pegues and Key also pled guilty to this carjacking and the use of a firearm in this incident as well.
On May 25, 2023, Malik Malone appeared before Chief United States District Judge Sheryl H. Lipman and pled guilty to all charges.
On September 5, 2023, Adrian Pegues appeared before Magistrate Judge Charmiane G. Claxton and pled guilty to 11 of the 12 charges against him. On September 6, 2023, Alan Key also appeared before Magistrate Judge Charmiane G. Claxton; he pled guilty to all charges against him.
Malone is scheduled to be sentenced by Chief Judge Lipman on October 20, 2023. Pegues and Key will be sentenced by Chief Judge Lipman on December 18, 2023. There is no parole in the federal system.
This case was investigated by the FBI’s Safe Streets Task Force, the Germantown Police Department, and the Memphis Police Department.
Assistant United States Attorney Greg Wagner is handling the prosecution of this matter for the government.
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Thornton Man Charged as Felon in Possession of a FirearmRead the Press Release
Denver—The United States Attorney’s Office for the District of Colorado announces that 36-year-old Dean Fabiano, of Thornton, has been charged by criminal complaint with Possession of a Firearm by a Prohibited Person.
According to the criminal complaint unsealed in federal court, Fabiano has multiple felony convictions that prohibit him from possessing firearms and ammunition. When, on September 6, 2023, federal law enforcement executed a search warrant at Fabiano’s home, they found 18 firearms, as well as various firearms parts, suspected drugs, potential destructive devices, and Nazi memorabilia and drawings. During the search, law enforcement found a letter from a storage facility where Fabiano rented a storage unit. Law enforcement then obtained and executed a search warrant at the storage unit, where they found more firearms and firearm parts.
The Defendant made his initial appearance in federal court in Denver on September 8, 2023, where he was advised by United States Magistrate Judge Neureiter of the charge pending against him.
This case is being investigated by Homeland Security Investigations and the ATF. Assistant United States Attorney Kelly Churnet is handling the prosecution.
The charge in the criminal complaint is an allegation and the Defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Case Number: 23-mj-00156
Tacoma man sentenced to 28 years in prison for production and possession of images of child rape and abuseRead the Press Release
Tacoma – A 40-year-old Tacoma resident was sentenced today in U.S. District Court in Tacoma to twenty-eight years in prison and a lifetime of supervision for producing and possessing images of child sexual abuse, announced Acting U.S. Attorney Tessa M. Gorman. A 2018 investigation revealed that Lamar Allen Thompson, who was on state supervision as a sex offender for a 2016 conviction for molesting two minor children, filmed his molestation of two different minor children. Washington State Department of Corrections Officers arrested Thompson on November 8, 2018. Thompson has been in state or federal custody ever since. At the sentencing hearing, U.S. District Judge Benjamin H. Settle said that the crimes were “cruel and merciless.”
“This is a lengthy sentence, but necessary in this case to protect the community from an offender who would not be deterred,” said Acting U.S. Attorney Gorman. “Despite a prior prison sentence, despite state supervision and registration as a sex offender, Mr. Thompson preyed on the trust of friends and family to horribly harm additional children.”
According to records filed in the case, Thompson’s creation of images of child sexual abuse came to light when he lost his phone at a Tacoma manufacturing plant where he worked. In an effort to locate the phone’s owner, co-workers saw pictures of child sexual abuse and alerted law enforcement. Law enforcement obtained a warrant to review the phone, determined it belonged to Thompson, and discovered he had filmed his abuse of multiple children.
Following his arrest on federal charges, Thompson asked for multiple trial delays and then pleaded guilty in March 2023, on the morning his trial was supposed to begin.
In asking for a 45-year sentence, Assistant United States Attorney Matthew Hampton wrote to the court, “Lamar Thompson committed unspeakable acts of violence against innocent children. Thompson’s depraved and selfish acts were an attack on those children’s psyches. They, not Thompson, will bear the heavy psychological load that all survivors of child sexual abuse must carry. And they will do so for the remainder of their lives…. These children and their families, not Thompson, will ultimately pay the price for Thompson’s selfishness and cruelty. It therefore falls to this Court to speak for the community and state in no uncertain terms that those who commit acts of sexual abuse against the most vulnerable among us cannot escape justice.”
“Today’s significant sentence reflects the horrific nature of continued child victimization by a repeat sex offender, even after prior registration and conviction,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI is committed to protecting children from predators and encourages the reporting of suspicious behavior to law enforcement.”
The case was investigated by Homeland Security Investigations with assistance from the Tacoma Police Department and the Washington State Department of Corrections.
The case was prosecuted by Assistant United States Attorneys Matthew Hampton and Zachary Dillon.
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.justice.gov/psc.
Stafford Man Sentenced to Prison for Tax EvasionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DAVID KAMAL, 61, of Stafford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to eight months of imprisonment, followed by two years of supervised release, for tax evasion. Judge Shea also ordered Kamal to pay a $20,000 fine.
According to court documents and statements made in court, Kamal, who formerly resided in Hebron, willfully evaded taxes for the 2012 tax year by filing a false tax return for that year. On the tax return, Kamal claimed false deductions, including deductions for moving expenses and medical expenses he had not incurred. Kamal subsequently provided false documentation for the moving expenses, including invoices and bank statements, to an attorney for the IRS in connection with U.S. tax court proceedings. Kamal also filed false tax returns for the 2013 through 2017 tax years by claiming false and inflated unreimbursed medical and dental expenses.
Kamal has agreed to cooperate with the IRS to pay $163,264 in back taxes, as well as interest and penalties.
Kamal pleaded guilty to the offense on December 7, 2022.
Kamal, who is released on a $50,000 bond, is required to report to prison on November 17.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
Springfield, Illinois, Man Sentenced to 60 Months and One Day for Manufacturing Methamphetamine and Possessing a FirearmRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Matthew Morlee, 46, was sentenced on September 5, 2023, by Senior U.S. District Judge Sue E. Myerscough to 60 months and one day in prison for manufacturing methamphetamine and for possessing a firearm during and in furtherance of a drug crime.
Morlee was indicted in September 2018 and pleaded guilty in May 2023. After his initial release on bond, Morlee’s bond was subsequently revoked, and he was detained in the custody of the United States Marshals Service.
The statutory penalties for manufacturing a substance containing methamphetamine are up to 20 years’ imprisonment, up to a $1,000,000 fine, and up to a life term of supervised release. The penalties for possessing a firearm during and in furtherance of a drug crime are up to life imprisonment, up to a $250,000 fine, and up to five years of supervised release.
This case was indicted as part of the FBI Safe Streets Task Force which included members of the Federal Bureau of Investigation, Springfield Field Office; Illinois State Police; Springfield Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Chatham Police Department. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Morlee 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.
Springfield, Illinois, Man Sentenced to 180 Months for Possessing Fentanyl with Intent to Distribute ItRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Jeremy Mitchell, 34, was sentenced on September 8, 2023, by U.S. District Judge Colleen R. Lawless to 180 months in prison for possessing a substance containing fentanyl with intent to distribute it. He was also ordered to serve eight years of supervised release.
Mitchell was indicted in May 2021 and pleaded guilty in April 2023. He has been in the custody of the United States Marshals Service since his arrest in April 2021. Mitchell has numerous drug-related prior convictions, as well as a prior conviction for aggravated battery with a firearm.
The statutory penalties for possessing a substance containing fentanyl with intent to distribute are up to life imprisonment, up to an $8,000,000 fine, and up to a life term of supervised release.
This case was investigated by the Springfield Police Department, Illinois State Police, and the Drug Enforcement Administration. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Mitchell 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.
South Dakota Man Pleads Guilty to Conspiracy to Acquire Controlled SubstancesRead the Press Release
Kenneth Hurd, 32, from Harrisburg, South Dakota, pled guilty in federal court on September 5, 2023, to Conspiracy to Acquire Controlled Substances by Fraud.
At the plea hearing, Hurd admitted that he knowingly conspired with co-defendant, Douglas Kelley, to obtain and acquire fentanyl by means of misrepresentation, fraud, deception, and subterfuge. They used Douglas Kelley’s position as a nurse at MercyOne Hospital in Sioux City to obtain fentanyl and other controlled substances for personal use.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Hurd remains free on bond pending sentencing. Hurd faces, not more than 4 years’ imprisonment without the possibility of parole, a $250,000 fine, and up to 1 year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Kraig Hamit and was investigated by the Iowa Division of Inspections & Appeals, United States Department of Health and Human Services, Sioux City Police Department, and the Federal Bureau of Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-4022.
Follow us on Twitter @USAO_NDIA.
Senior Hoover Criminal Gang Member Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
PORTLAND, Ore.—A senior Hoover Criminal Gang member was sentenced to federal prison today for illegally possessing a firearm as a convicted felon.
Eugene Michael Brown, 39, aka “Big Truth,” was sentenced to 30 months in federal prison and three years’ supervised release.
According to court documents, as part of an ongoing federal racketeering investigation of the Hoover Criminal Gang, law enforcement obtained photos online of Brown, a convicted felon, posing with other known Hoover members.
On the evening spanning May 21 and 22, 2022, Brown, who at the time was on post-prison supervision, and several other Hoover members went to an adult club in northwest Portland. Shortly after Brown’s arrival at the club, a physical fight broke out. The fight, between Hoover members and other patrons, spilled out into the club’s parking lot and shots were fired. Video surveillance showed Brown leave the club with a gun and head toward his vehicle. Brown is not believed to have fired any gunshots during this incident. He and four other Hoover members were later charged in Multnomah County Circuit Court for their involvement in the altercation.
Two weeks later, on July 6, 2022, Brown and his girlfriend got into an argument at a gas station on Northeast Broadway Street in Portland and investigators located a 9mm shell casing at the scene. Two days later, investigators executed a search warrant on Brown’s residence and located two 9mm firearms as well as Hoover related clothing, writing, drawings, and photos consistent with Brown’s continued membership in the gang. Lab tests later confirmed Brown’s DNA was present on both firearms.
On November 2, 2022, a federal grand jury in Portland returned an indictment charging Brown with illegally possessing a firearm as a convicted felon. On June 16, 2023, he pleaded guilty to the single charge.
This case was investigated by the FBI with assistance from the Portland Police Bureau, Multnomah County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. 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.
Seneca Man Indicted for Meth Trafficking, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Seneca, Mo., man has been indicted by a federal grand jury for illegally possessing methamphetamine and a firearm.
Jason Daniel Gibson, 40, was charged in a two-count indictment returned by a federal grand jury on Aug. 29, 2023.
The federal indictment alleges that Gibson possessed methamphetamine with the intent to distribute on Sept. 9, 2022. The indictment also charges Gibson with being a felon in possession of a firearm. Gibson allegedly possessed a Henry Repeating Arms .22-caliber rifle on Sept. 9, 2022. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney John D. Hatcher. It was investigated by the Ozark Drug Enforcement Team, the Newton County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missouri State Highway Patrol.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Rochester Man Who Led Drug Conspiracy Going to Prison for More Than 13 Years for Fentanyl Trafficking and Possessing FirearmsRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Tyrik Edwards, 31, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of fentanyl, 10 grams or more of a fentanyl analogue, and 500 grams or more of cocaine, and possession of firearms in furtherance of a drug trafficking crime, was sentenced to serve 160 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that Edwards – a two-time convicted felon – was a leader of a drug trafficking organization that distributed significant quantities of fentanyl, para-fluorofentanyl, and cocaine in the Rochester area, and Augusta, Maine. Other members of the conspiracy included Walter H. Bennett and Ray C. Mack, Jr. The organization operated a drug house on Woodward Street in Rochester, New York, where they sold fentanyl, para-fluorofentanyl, and cocaine to customers. In addition, controlled substances, firearms, and ammunition, were stored at various locations in Rochester, including the Woodward Street residence, along with residences on Argo Park and Clairmount Street. Fentanyl and drug proceeds were stored at an East Avenue apartment the residence of Edwards’ then-girlfriend, Quenteria Wilson, who lived there with her four-year-old son. During the investigation, law enforcement recovered approximately 158 grams of fentanyl, 11 grams of para-fluorofentanyl, and 580 grams of cocaine, along with more than $20,000 in drug proceeds, six firearms, hundreds of rounds of ammunition, and seven firearm magazines.
Ray C. Mack, Jr., and Walter H. Bennett were previously convicted. Mack was sentenced to serve 135 months in prison, Bennett is awaiting sentencing. Quenteria Wilson was convicted of misdemeanor possession of fentanyl and was sentenced to probation.
The sentencing is the result of an investigation by the Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Rochester Police Department and the Greater Rochester Area Narcotics Enforcement Team, under the direction of Chief David M. Smith.
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Repeat Child Predator Sentenced to More Than 10 Years in PrisonRead the Press Release
WASHINGTON – Michael Otis-Currie, 27, of Adelanto, California, was sentenced today in U.S. District Court to 121 months in prison and 10 years of supervised release for accessing and viewing child pornography, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne A. Jacobs, of the Washington Field Office’s Criminal and Cyber Division, and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Otis-Currie pleaded guilty on September 11, 2022. According to court documents, on October 1, 2020, an undercover law enforcement officer (“UC”) entered the “you.ngshare” KIK group, a group that was designed for members to discuss the sexual abuse of children, and to trade child pornography. The UC continued to monitor activity in the group over the next several days. Between October 1, 2020 and November 17, 2020, approximately 400 users joined the “you.ngshare” group. On October 18, 2020, a user later identified as the defendant posted a link to the group that contained approximately 2,250 image and video files depicting the sexual abuse of children. Many of these videos depicted the rape and physical torture of several young children. The folder shared by the defendant also contained a subfolder entitled “Incest,” which contained approximately 250 additional videos and images depicting child erotica and child pornography.
Otis-Currie was previously convicted in California in 2019 of possession or control of child pornography and was on supervised probation when he committed the instant offense. A law enforcement search of the defendant’s phone revealed additional saved video and image files depicting the sexual abuse of children. The defendant admitted that he was a member of different online groups in which child pornography was discussed and shared.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This investigation also received valuable assistance from Los Angeles Field Office – Victorville Resident Agency. It was prosecuted by Assistant U.S. Attorney Janani Iyengar and Assistant U.S. Attorney Rachel Forman, of the Child Exploitation and Human Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.
Prisoner Caught Hiding Contraband Knives Sentenced to 10+ YearsRead the Press Release
ATHENS, Ga. – An Athens resident with a lengthy and violent criminal history was sentenced to serve more than ten years in federal prison for illegally possessing a gun, hiding homemade shanks while in federal detention and violating the terms of his supervised release.
Michael Anthony Randall, 33, of Athens, was sentenced to a total of 129 months in prison to be followed by three years of supervised release by U.S. District Judge Tilman E. “Tripp” Self III on Sept. 7.: Randall was sentenced to serve 105 months in prison after he pleaded guilty to one count of possession of a firearm by a convicted felon in Case No. 3:22-cr-00023; he was sentenced to serve 60 months in prison concurrent after he pleaded guilty to one count of possession of contraband while in jail in Case No. 3:22-cr-28; and he was sentenced to serve 24 months in prison consecutive for violating his supervised release for a total of 129 months imprisonment. Randall is not eligible for parole.
“The penalty is steep for prisoners caught with contraband weapons and violent repeat offenders who illegally possess guns. In this case, Michael Randall violated both and is now held accountable with additional prison time,” said U.S. Attorney Peter D. Leary. “In collaboration with our law enforcement partners, our office will seek federal prosecution against the most dangerous and repeat criminals in our communities.”
“Michael Randall is the definition of a repeat offender,” said Supervisory Senior Resident Agent of FBI Atlanta’s Macon office. “The FBI will continue to work with our law enforcement partners to keep dangerous criminals like Randall off Georgia streets.”
According to court documents, Randall was indicted for possession of a firearm by a convicted felon on Oct. 11, 2022, in the Middle District of Georgia, after he was arrested for illegally possessing a .380 pistol in Athens, on Jan. 12, 2021. Randall has multiple prior state felony convictions in North Carolina and Georgia, including assault with serious bodily injury and drug convictions. Randall was also previously convicted in the Middle District of Georgia for possession of a firearm by a convicted felon. It is illegal for a convicted felon to possess a firearm.
On Nov. 8, 2022, while in custody awaiting his initial appearance in federal court, Butts County Jail officers found a shank—a handmade knife—hidden on Randall’s person. Officers found another shank on Randall on Nov. 10, prior to his federal court appearance. On Dec. 16, Randall was found with another shank inside the Butts County Jail.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by FBI, the U.S. Marshals Service, the Athens-Clarke County Police Department and the Butts County Sheriff’s Department.
Assistant U.S. Attorney Tamara Jarrett prosecuted the case for the Government.
Prior Sex Offender Pleads Guilty to New ChargesRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Benjamin Crout, 39, of Bath, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to possession of child pornography by an individual with a prior sex offense, which carries a mandatory minimum penalty of 10 years in prison and a maximum of 20 years.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that in August 2004, Crout was convicted in Steuben County Court of Possessing Sexual Performance by a Child Less than 16 and Attempted Sexual Abuse in the 1st Degree. In June 2022, law enforcement received a cybertip from the National Center for Missing and Exploited Children, that an individual uploaded six files containing child pornography to a Google Drive account. Investigators tracked the IP address to Crout’s residence. On January 26, 2023, a search warrant was executed at Crout’s residence during which a tablet and cell phone containing images of child pornography were seized. The devices collectively contained 1,323 images and 47 videos of child pornography, some of which included infants/toddlers engaged in sexually explicit conduct and depictions of violence.
The plea is the result of an investigation by the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia and the New York State Police, under the direction of Major Eugene Staniszewski.
Sentencing is scheduled for January 4, 2024, before Judge Siragusa.
Pontotoc County Resident Pleads Guilty to Assault and Explosives OffensesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that William Craig Hollars, age 44, of Pontotoc County, Oklahoma, entered a guilty plea to five charges relating to a prolonged assault that ended at the Chickasaw Nation Treasury Building in September of 2022.
The Indictment filed on June 14, 2023, charged Hollars with one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, one count of Assault of a Dating Partner in Indian Country, one count of Attempt to Damage and Destroy by Explosive, one count of Making of a Firearm in Violation of the National Firearms Act, and one count of Carry Explosive During the Commission of a Felony.
The charges arose from an investigation by the Chickasaw Nation Lighthorse Police Department, the Oklahoma Highway Patrol Bomb Squad, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
At the plea hearing, Hollars admitted that on September 6, 2022, he strangled the victim, threatened her with a homemade bomb, chased her as she fled to the Chickasaw Nation Treasury Building, struck her in the back of the head, dragged her from the building as she sought shelter, then attempted to light the bomb in order to injure her and cause damage to the Treasury Building.
The crimes occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable D. Edward Snow, 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. Hollars will remain in the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Kevin Gross represented the United States.
New Orleans Man Sentenced on Drug and Weapons ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – KENDALL THEARD, age 26, a resident of Orleans Parish, was sentenced on October 6, 2023 by U.S. District Judge Jane Triche Milazzo to time served, 3 years of supervised release, and a $100 mandatory special assessment fee after previously pleading guilty to possession with intent to distribute a controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and (b)(1)(D), announced U.S. Attorney Duane A. Evans.
On July 29, 2021, New Orleans Police Officers stopped a vehicle containing three individuals, including THEARD. During this stop, THEARD fled the vehicle but was later apprehended by officers. Upon a search of the vehicle, officers discovered illegal drugs and weapons, including a machine gun.
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.
U. S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Louisiana State Police, and the New Orleans Police Department. The case was prosecuted by Assistant U. S. Attorney Inga Petrovich of the Violent Crime Unit .
Monroeville Man who Shot at Police Receives Statutory Maximum Sentence of 10 Years in Federal PrisonRead the Press Release
MOBILE, AL – A Monroeville man received a statutory maximum sentence of 120 months in prison for illegally possessing a firearm that he used to shoot a 15-year-old victim and fire at police.
According to court documents and evidence presented at his sentencing hearing, Broderick Tramaine Young, 33, used a 5.56mm caliber rifle to shoot through the front of a house in Monroeville, striking a 15-year-old victim in the abdomen. The incident occurred on February 24, 2022. The shooting victim called 911 to report his injury, at which time several Monroeville police officers rapidly responded to the scene. The victim suffered life-threatening injuries that required a helicopter transport to a hospital for surgery and extensive inpatient trauma intervention.
Immediately as several officers drove up to the scene, Young began firing shots from the rifle in their direction, shattering the windows of multiple patrol vehicles. The officers took cover behind several vehicles before returning fire at Young, who was not injured during the incident. Shards of glass lodged into one of the officers’ hands, and debris from the gunfire lodged into another officer’s neck and right eye, causing bleeding and injuries that required medical treatment. Young’s gunfire also tore through and damaged nearby houses, several of which were occupied. The shooting occurred a short distance from an elementary school.
After Young’s shooting ceased, police quickly took him into custody and seized his rifle, which was equipped with an empty 30-round magazine. Young admitted that at the time he possessed and fired the rifle, he knew he had previously been committed to a mental institution and was subject to a protection-from-abuse order in a state domestic-violence case in Florida. Those prior adjudications rendered Young’s possession of the rifle illegal under federal law.
In addition to the 10-year prison sentence, United States District Judge Kristi K. DuBose ordered Young to serve a three-year term of supervised release upon his release from prison, during which time he will receive treatment for substance abuse and mental health. The court did not impose a fine, but Judge DuBose ordered Young to pay $200 in special assessments.
Young faces several pending charges in the Monroe County Circuit Court stemming from this incident, including attempted murder and shooting a firearm into an occupied building. He is presumed innocent in that case until proven guilty beyond a reasonable doubt in a court of law.U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Federal Bureau of Investigation, the Alabama State Bureau of Investigation, and the Monroeville Police Department investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.Midland Woman Sentenced for More Than $1.2 Million of Wire and Tax FraudRead the Press Release
MIDLAND, Texas – A Midland woman was sentenced in a federal court in Midland on Friday to 30 months in prison and ordered to pay $1,251,416.67 in restitution for wire fraud and filing a false tax return.
According to court documents, while working as a secretary for Bridges Equipment, LTD, Tamara Dawn Allen, 49, fraudulently cashed her employer’s checks using the owner’s signature stamp and made electronic payments to her personal bank accounts from company accounts. The scheme amounted to a total loss of at least $868,770.60. Additionally, Allen underreported her income on her taxes over a four-year span, for a total amount of $553,390.00.
Allen pleaded guilty to counts one and 24 of a 31-count superseding indictment on May 12.
“The fraud perpetrated by this defendant, a long-time employee at a family-owned business, resulted in substantial losses and destroyed relationships,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I appreciate the work of our partners for investigating this case. Just as with violent crime, we will continue to vigorously prosecute all white collar and fraud cases in the Western District of Texas.”
“Ms. Allen took advantage of her position to personally enrich herself at the expense of her employer and their partners,” said Special Agent in Charge Douglas M. Goodwater for the FBI El Paso Field Office. “The victims can have confidence that the defendant will be held accountable for the crimes she committed and sends a message to other fraudsters that their schemes and deception will not be tolerated in our community.”
“Allen spent years stealing from her employer, gaining wealth at everyone else’s expense, including law abiding taxpayers,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s Houston Field Office. “The special agents and prosecutors rigorously documented every deceptive transaction, ensuring that the case against her was irrefutable. As experts in financial crimes, CI regularly partners with other law enforcement agencies to help ensure justice is served.”
The FBI and CI investigated the case.
Assistant U.S. Attorney Joe Mahoney prosecuted the case.
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Michigan Marijuana Dispensary Owner Convicted of Tax Evasion and Obstructing the IRSRead the Press Release
A federal jury in Detroit found a Michigan man guilty of evading federal income taxes and obstructing the IRS, among other charges.
According to court documents and evidence presented at trial, Ryan Richmond, of Bloomfield, owned and operated the marijuana dispensary Relief Choices, LLC in Warren, Michigan. From 2011 through at least 2014, Richmond had Relief Choices pay its operating expenses extensively in cash, and routed customer credit card payments through an unrelated third-party bank account to conceal his true business gross receipts. In 2015 and 2016, Richmond obstructed the IRS by misleading investigators – and particularly an IRS auditor examining his individual income taxes – about his knowledge of, role in and profits derived from his Relief Choices operation. Richmond caused a tax loss to the IRS of more than $1.15 million.
Richmond is scheduled to be sentenced on Dec. 13 and faces a statutory maximum penalty of five years in prison for each count of tax evasion, three years in prison for obstructing the IRS and one year in prison for the willful failure to file a tax return count. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Mark McDonald and Christopher P. O’Donnell of the Tax Division are prosecuting the case.
Maryland U.S. Attorney's Office Launches Somber PSA on Impacts of Gun ViolenceRead the Press Release
Baltimore, Maryland – On Sunday, September 10, Maryland U.S. Attorney Erek L. Barron launched a cutting edge 60 second public service announcement encouraging viewers to take action to end gun violence. The video aired across Maryland just before kickoff of the Baltimore Ravens home opener, and will continue to broadcast across cable and digital platforms.
"Gun violence impacts more than one person or one family. Friends, parents, employers, neighbors – all are forced to confront the devastating realities of gun violence," said Maryland U.S. Attorney Erek L. Barron. "We are bringing together law enforcement, community organizations, and private citizens in pursuit of a common goal: protecting the places we call home.”
As a result of collaborative efforts between law enforcement and community-based organizations, violent crime is down throughout Maryland. But, more must be done. Project Safe Neighborhoods balances prevention, intervention, strategic law enforcement, and community engagement to end gun violence and keep communities safe.
“The Baltimore Police Department along with our many law enforcement partners are committed to ending gun violence and breaking the cycle of trauma it brings to our communities,” said Acting Police Commissioner Richard J. Worley. “Our residents and neighborhoods deserve better and our agency remains steadfast in implementing Community Policing strategies and working collaboratively with our communities to create a safer Baltimore for all.”
The U.S. Attorney's Office works closely with community-based organizations throughout Maryland, including Roca, a nonprofit working to intervene with the young men most likely to shoot or be shot and develop partnerships and programs that have proven effective in curbing violence at the core of communities.
"We have seen that we can lessen urban violence by relentlessly finding and engaging the young people living at the center of it," said Kurtis Palermo, Executive Vice President of Roca Maryland. "Young men can change—and our communities can heal—if we help them address the trauma that is at the root of violence and provide the skills and support they need to learn to think and act differently."
No one should live in fear in their own home or neighborhood. This video encourages communities to get involved in ending gun violence.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
# # #Madison Man’s “Ticket Switching” Scam Leads to Guilty Plea to Wire Fraud, Attempted Wire FraudRead the Press Release
BANGOR, Maine: A Madison man pleaded guilty in U.S. District Court in Bangor today to wire fraud and attempted wire fraud.
According to court records, from June 2021 to April 2023, Aaron Hoster, 51, removed UPC labels from low-cost items and applied them to higher-priced items which he then purchased. Hoster defrauded multiple Home Depot and Lowe’s Home Improvement stores in Maine, cheating the retailers out of more than $51,000. In one instance, Hoster purchased a $439 cordless finish nailer kit, paying just $19.98 by scanning a price code for trimmer line. In another example, he scanned a code for an $11.36 chrome-plated plastic tailpiece despite purchasing a powered drain cleaner valued at $429.
Hoster faces up to 20 years in prison and a fine of up to $250,000. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Homeland Security Investigations (HSI) investigated these cases.
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Lewiston Man Going to Prison on Meth ChargeRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Treshon Alexander, 30, of Lewiston, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to possession with intent to distribute 400 grams of more of fentanyl, which carries a minimum penalty of 15 years in prison, a maximum of life in prison, and a fine of up to $20,000,000.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that in February 2015, Alexander was convicted on federal charges of conspiracy to manufacture, possess with intent to distribute, and distribute 280 grams or more of crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime. Alexander was sentenced to serve 108 months in prison and five years’ supervised release. On February 16, 2023, while on supervised release, Alexander was arrested at his Apollo Drive residence in Greece, when members of the U.S. Probation Office conducted a search there and at a Chippendale Road residence, which Alexander used to store narcotics. During the searches, investigators seized $6,654.00 in U.S. currency, multiple cell phones, materials for processing and packaging narcotics for distribution, over 2000 rounds of ammunition, a money counter, and vacuum sealer. In addition, approximately 1,394 grams of fentanyl and 504 grams of cocaine were also seized.
The plea was the culmination of an investigation by the U.S. Probation Office, under the direction of Chief Probation Officer Timothy Englert, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito. Additional assistance was provided by the New York State Attorney General’s Office, under the direction of Attorney General Letitia James.
Sentencing is scheduled for January 10, 2024, before Judge Geraci.
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Le Roy, Illinois, Man Sentenced to 30 Months for Theft of Medical Products and Possession of a Controlled Substance with Intent to DistributeRead the Press Release
SPRINGFIELD, Ill. – A Le Roy, Illinois, man, Issac Jackson, 29, was sentenced on September 7, 2023, to 30 months in federal prison for theft of medical products and possession of a controlled substance with intent to distribute.
According to court documents, while employed as a pharmacy technician, Jackson stole hydrocodone, alprazolam, and promethazine with codeine before selling it illegally. At the sentencing hearing, U.S. District Judge Colleen R. Lawless found that Jackson was responsible for diverting over 28,000 hydrocodone pills from the medical chain of supply to the illicit drug market.
Jackson was indicted in October 2021 and pleaded guilty in November 2022.
The statutory penalties for theft of medical products are up to 15 years’ imprisonment, up to a $250,000 fine, and up to three years of supervised release. The statutory penalties for possession of a controlled substance with intent to distribute are up to 20 years’ imprisonment, up to a $1,000,000 fine, and up to a life term of supervised release.
The United States Drug Enforcement Administration Diversion Unit, which focuses on cases involving pharmaceutical controlled substances diverted from the legal chain of commerce to the illegal drug market, investigated this case in conjunction with the Illinois State Police, Southcentral Drug Task Force, the Montgomery County Sheriff’s Office, the Carlinville Police Department, and the Illinois Department of Financial and Professional Regulation Pharmacy Division. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
Laredo woman arrested for impersonating a nurseRead the Press Release
LAREDO – A 35-year-old Laredo resident has been charged for making false statements related to health care matters and aggravated identity theft, announced U.S. Attorney Alamdar S. Hamdani.
Law enforcement took Nora Nely Avila into custody today. She is expected to make her initial appearance before U.S. Magistrate Judge Diana Song Quiroga tomorrow morning.
The three-count indictment, returned Sept. 6, alleges Avila impersonated a nurse from January 2017 through December 2019 and performed work she was not qualified to do at multiple home health companies in the Laredo area.
The patients and health care providers were part of the federally-funded Medicaid and Medicare programs, according to the charges. Avila is also alleged to have obtained employment as nurse trainer in the federally-funded Job Corps program and was assigned to train future nurses.
If convicted, Avila faces up to five years in federal prison as well as a possible $250,000 maximum fine for each of the false statements charges. She faces an additional two years in prison for aggravated identity theft which must be served consecutively to any other prison term imposed.
The FBI, Department of Health and Human Services – Office of the Inspector General (OIG), Department of Labor – OIG, Homeland Security Investigations and the Texas Attorney General’s Medicaid Fraud Control conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Kenai Man Sentenced for Failing to Re-register as a Sex OffenderRead the Press Release
ANCHORAGE, Alaska – A Kenai man was sentenced on Aug. 31, 2023, to 20 months in prison and seven years’ supervised release for not registering as a sex offender after moving to Alaska from Oregon.
According to court documents, Wayne Hinze, 65, was convicted of two counts of rape 1, six counts of sexual abuse 1 and three counts of attempted sodomy 1 in the state of Oregon in 1999. The defendant was sentenced to 14 and a half years in prison and five years’ probation. Hinze registered as a sex offender as part of his sentence and was advised that he must register in his new state of residence if he moved away from Oregon.
The defendant was released from prison in 2014 and was registered as a sex offender in Oregon at that time. In 2017, he absconded from parole and law enforcement could not locate him.
Hinze was located in Kenai, Alaska, and was arrested October 2022. Law enforcement learned he moved to the state in March 2018 and never registered or attempted to register as a sex offender in Alaska. The last time he registered as a sex offender was June 2017 in Oregon.
“Mr. Hinze’s manifest failure to register as a sex offender in the state of Alaska put our children at risk and will not be tolerated,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The U.S. Attorney’s Office will continue to work with the U.S. Marshals Service and local law enforcement to ensure communities are aware of sex offenders in their villages and neighborhoods. Maintaining this registry is paramount to keeping children safe.”
“The Sex Offender Task Force, which includes the U.S. Marshals Service, Anchorage Police Department, and the Alaska Wildlife Troopers, is committed to enhancing the protection of the public from unregistered sex offenders throughout the state of Alaska. Wayne Hinze posed a clear danger to the safety of community members who were unsuspecting of his prior convictions and actions. This is a case where the task force partnered with the Kenai Police Department and the U.S. Attorney’s Office to ensure the enforcement of the laws governing the Sex Offender Registry and the Adam Walsh Act,” said Rochelle Liedike, Deputy U.S. Marshal, District Sex Offender Investigations Coordinator for the U.S. Marshals Service.
The U.S. Marshals Service, with assistance from the Kenai Police Department, investigated the case.
Assistant U.S. Attorney Jennifer Ivers prosecuted the case.
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KC Man Sentenced for Meth Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine and for illegally possessing a firearm.
Richard A. Bloodsoe, 43, was sentenced by U.S. District Judge Greg Kays to 13 years in federal prison without parole.
On March 16, 2023, Bloodsoe pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Bloodsoe admitted that he conspired with others to distribute methamphetamine from July 8, 2021, to Sept. 20, 2022. He sold cocaine and methamphetamine to an undercover law enforcement agent on four occasions in July and August 2021. On Sept. 17, 2021, Bloodsoe sold an undercover agent a Jimenez Arms .380-caliber pistol.
On Dec. 14, 2021, agents saw Bloodsoe conducting drug transactions from his Cadillac DTS. Bloodsoe fled on foot from the agents, who searched his vehicle and found a backpack that contained a loaded Taurus 9mm handgun, 14 glass vials of PCP, a small apple juice bottle that contained PCP, a bag that contained approximately 21.09 grams of pure methamphetamine, a bag that contained approximately 51.9 grams of cocaine, a bag that contained approximately 48.4 grams of cocaine, and pills suspected to contain hydrocodone and methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Justice Department’s National Security Division Announces Key Corporate Enforcement AppointmentsRead the Press Release
The Justice Department’s National Security Division announced today that it has made key appointments to lead the Division’s corporate enforcement program. Ian C. Richardson has been named the first Chief Counsel for Corporate Enforcement, and Christian J. Nauvel has been named as Deputy Chief Counsel for Corporate Enforcement. Both attorneys will coordinate and oversee the Division’s investigation and prosecution of corporate crime relating to the national security of the United States.
“In an era of renewed nation-state competition, corporations are on the front lines of the fight to defend our national security,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We have watched with concern as investigations of corporate misconduct increasingly reveal violations of laws that protect the United States. Enforcing the laws that deny our adversaries the benefits of America’s innovation economy and protect technologies that will define the future is core to the National Security Division’s mission.”
Previously, Richardson served as an Assistant U.S. Attorney for the Eastern District of New York. As a prosecutor, he led key corporate enforcement and national security prosecutions. In U.S. v. Lafarge SA, Richardson obtained the Department’s first corporate conviction for providing material support to foreign terrorist organizations. In U.S. v. Ticketmaster LLC, he resolved a corporate computer intrusion investigation in which the company admitted obtaining unauthorized access to a competitor’s computers. Recently, in Operation Medusa, Richardson obtained the court order that authorized an FBI-led computer network operation to remotely neutralize malware used by Russia for long-term cyber-espionage.
Prior to joining the National Security Division, Nauvel served as Senior Counsel to the Assistant Attorney General for the Criminal Division. Previously, he was a Trial Attorney in the Criminal Division’s Money Laundering and Asset Recovery Section and with the National Cryptocurrency Enforcement Team (NCET). Nauvel served as a lead prosecutor in U.S. v. Huawei, which charged the defendants with racketeering, sanctions violations and theft of trade secrets. He has investigated and prosecuted financial institutions, including in U.S. v. Bank Julius Baer, as part of the FIFA corruption scheme. He has also conducted sensitive cryptocurrency cases within the NCET.
In announcing the establishment of these positions in March, Deputy Attorney General Lisa Monaco also announced that the National Security Division would add more than 25 prosecutors to investigate and prosecute sanctions evasion, export control violations and similar economic crimes.
Jessamine County Man Sentenced to 262 Months for Armed Drug TraffickingRead the Press Release
LEXINGTON, Ky. — A Nicholasville, Ky., man, Stephen Lancaster, 31, was sentenced to 262 months in federal prison on Monday, by Chief U.S. District Judge Danny Reeves, for possession with intent to distribute 10 grams or more of a fentanyl analogue, possession with intent to distribute 40 grams or more of fentanyl, possession with intent to distribute 50 grams or more of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.
According to his guilty plea agreement, on April 14, 2022, deputies with the Jessamine County Sheriff’s Office conducted a traffic stop on a vehicle in which Lancaster was a passenger. Lancaster admitted to law enforcement that he had a large amount of narcotics and a firearm in the vehicle. During the search of the vehicle, deputies located 23 grams of fluorofentanyl, a fentanyl analogue, 332 grams of fentanyl, 54 grams of pure methamphetamine, and 236 grams of multicolored pills containing methamphetamine. Deputies also found a loaded AR-style pistol under the passenger seat, and a drum magazine. Lancaster admitted that he possessed the drugs with the intent to distribute them, and he possessed the firearm in furtherance of drug trafficking.
Under federal law, Lancaster must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, Drug Enforcement Administration (DEA), Louisville Field Office; and Kevin Grimes, Jessamine County Sheriff, jointly announced the sentence.
The investigation was conducted by DEA and the Jessamine County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.
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Iowa Air National Guardsman Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
A Guardsman for the Iowa Air Guard’s 185th Refueling Wing who possessed over 1,400 images of child sexual abuse material was sentenced today, September 11, 2023, to three years in federal prison.
Kevin Swanson, age 35, from Sioux City, Iowa, received the prison term after he plead guilty in federal court on May 4, 2023, to Possession of Child Pornography.
Evidence at today’s hearing established that between August 2020, and August 2021, he used an Internet-based, peer-to-peer (P2P) network to knowingly share and receive visual depictions of minors engaged in sexually explicit conduct, including depictions involving prepubescent minors who had not reached the age of 12.
Swanson was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Swanson was sentenced to 36 months’ imprisonment and a total of $10,000 in fines. Swanson must also serve a five-year term of supervised release after the prison term and register as a sex offender. There is no parole in the federal system.
Swanson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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.”
The case was prosecuted by Assistant United States Attorney Kraig R. Hamit and investigated by Homeland Security Investigations, the Sioux City Police Department, and the Nebraska State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4080.
Follow us on Twitter @USAO_NDIA.
Inmate and Three Co-defendants Convicted in $25 Million COVID-19 Relief FraudRead the Press Release
FRESNO, Calif. — Telvin Breaux, 32, an inmate at the California Correctional Institution in Tehachapi, pleaded guilty today to conspiracy and aggravated identity theft charges for leading a $25 million fraud against the California Employment Development Department (EDD) during the COVID-19 pandemic. Three of Breaux’s co-defendants, Fantasia Brown, 35, of Los Angeles; Shanice White, 29, of Hawthorne; and Holly White, 33, of Los Angeles; also pleaded guilty for their roles in the fraud. U.S. Attorney Phillip A. Talbert made the announcement.
According to court documents, Breaux and his co-defendants obtained the personally identifiable information (PII) for other inmates, non-inmates, and minor children. Many of the non-inmates were patients or customers at hospitals, dentists’ offices, and other businesses where one of the co-defendants worked or had a point of contact. The minor children were the defendants’ own children or part of their networks of family and friends.
Breaux and his co-defendants used the stolen PII to submit fraudulent unemployment insurance claims online to EDD in these other individuals’ identities. The claims contained several misrepresentations, including that the other individuals became unemployed because of the COVID-19 pandemic and were available to work. Breaux was the ringleader of the scheme. He collected the identities used for the fraudulent claims, managed the submission of the claims, and controlled the distribution of the proceeds. Breaux kept track of everything in ledgers that were seized from his prison cell.
Fantasia Brown and Shanice White collected and distributed some of the proceeds according to Breaux’s instructions. For example, in one instance Breaux asked Brown to open another safe deposit box for him because he was only keeping $200,000 in each box. Brown agreed to do so and said that she had collected so much money for Breaux that she was one of his accountants. In another instance, Shanice White told Breaux that she needed a cash counting machine because her hands were hurting from counting so much money. Breaux replied that he was expecting another $120,000 that week. Investigators found pictures of cash proceeds and a cash counting machine on cellphones during the investigation.
Pictures of Proceeds and Cash Counting Machine Found on Cellphones
Holly White created email addresses that were used for fraudulent claims in the identities of hospital patients. Breaux obtained the identities from another co-defendant whose friend worked at the hospital.
As a result of the conspiracy, over 400 fraudulent claims were submitted to EDD and the United States. The total value of the claims, if all were approved and fully paid out, was nearly $25 million. Of these claims, over 290 were actually approved and $5.4 million was paid out. The EDD, however, froze some of that money before it could be spent.
The defendants used the proceeds to benefit themselves, family members, and friends. Their purchases included rent, luxury vehicles, trips to Las Vegas, jewelry, designer handbags, high-end furniture, and tuition.
Breaux and Brown are scheduled to be sentenced on March 18, 2024. Shanice White is scheduled to be sentenced on Dec. 18, 2023, and Holly White is scheduled to be sentenced on Jan. 16, 2024. Each of them faces maximum statutory penalties of 22 years in prison and fines of up to $250,000. Their actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables.
Daryol Richmond, 32, who was an inmate at the Kern Valley State Prison in Delano, was previously convicted for his involvement in the fraud. He was sentenced to over five years in prison in December 2022.
The remaining defendants in the case are Cecelia Allen, 35, of Downey; Tonisha Brown, 30, of Los Angeles; and Fantesia Davis, 34, of Victorville. Their next court date is Sept. 18, 2023. The charges against the remaining defendants are only allegations. They are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation, EDD, and the U.S. Department of Labor Office of Inspector General. Assistant United States Attorney Joseph Barton is prosecuting the case.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Illinois Family Members Plead Guilty to Kidnapping, Forced Labor and Conspiracy for Coercing Two Minors and a Third Victim in Years-Long Forced Labor SchemeRead the Press Release
WASHINGTON – Lorenza Domingo-Castaneda, 34, a Guatemalan national, pleaded guilty on September 8, 2023, in the Central District of Illinois to three counts of forced labor and two counts of conspiracy to commit forced labor. On August 18, codefendant Catarina Domingo-Juan, 37, also pleaded guilty to three counts of forced labor and two counts of conspiracy to commit forced labor. A third codefendant, Domingo Francisco-Juan, 43, previously pleaded guilty on August 30 to forced labor, conspricy to commit forced labor, kidnapping and conspiracy to commit kidnapping.
According to court documents, the defendants, who are siblings, conspired to bring two minor victims from Guatemala to the United States to work in their homes between December 2015 and March 2021. The defendants compelled the victims to provide domestic services within the homes and to work outside the homes at local hotels and factories. The defendants used false promises of a better life and an education to gain the permission of the victims’ mothers for their minor daughters to travel to the United States to live with the defendants. Domingo-Castaneda and Domingo-Juan also compelled a third victim to work in their homes and outside their homes at local businesses. The defendants isolated the victims in their homes, restricted their communications with their family in Guatemala and subjected them to physical, verbal and psychological abuse, among other coercive means.
“Human trafficking—particularly compelling the labor and services of unaccompanied minors—cannot be tolerated. Traffickers deftly use the promise of America to lure adults and children into the United States from thousands of miles away, only to then turn around and reveal their promises were false as part of a coercive scheme to compel their labor,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains steadfast in identifying and prosecuting human traffickers who exploit vulnerable victims for their own financial benefit.”
“Human trafficking is a scourge that affects not only far-flung locales but our local communities as well,” said U.S. Attorney Gregory K. Harris for the Central District of Illinois. “Traffickers prey on vulnerable victims – including children – bringing them to the United States and entangling them in forced labor schemes. The Central District of Illinois is committed to prosecuting these crimes and further asks community members who are aware of any signs of such exploitation to pass that information on to law enforcement.”
“Labor traffickers only care about one thing — money,” said Homeland Security Investigations (HSI) Chicago Special Agent in Charge Sean Fitzgerald. “Those subjected to domestic servitude are robbed of their dignity and freedom. Thankfully, these victims were rescued thanks to the efforts of law enforcement. Apprehending labor and human traffickers who take advantage of our most vulnerable and rescuing those exploited will always be a top priority for HSI.”
In accordance with the plea agreements, the defendants face penalties of 20 years up to life in prison as well as mandatory restitution. A federal district court judge will determine any penalty after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI with the assistance of the Champaign Police Department, Champaign County Sheriff’s Office, U.S. Marshals Service and Champaign County State’s Attorney’s Office investigated this case.
Assistant U.S. Attorney Bryan Freres for the Central District of Illinois and Trial Attorney Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Huntington Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Valerie June Damron, 62, of Huntington, pleaded guilty today to distribution of a quantity of a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on October 11, 2022, Damron sold approximately 1 ounce of methamphetamine to a confidential informant at her Seventh Avenue residence. Damron admitted to that transaction and to selling quantities of methamphetamine totaling approximately 69 grams on three occasions between October 14 and October 19, 2022. Damron further admitted that the quantities of fentanyl were mixed in with the methamphetamine sold in two of those additional transactions.
On October 20, 2022, law enforcement officers executed a search warrant at Damron’s residence and seized approximately 122 grams of methamphetamine, 20.5 grams of fentanyl and multiple firearms including a Davis Industries .22-caliber pistol, a Smith & Wesson 9mm pistol, and a FT 9mm pistol. Damron admitted that she intended to distribute the controlled substances.
On February 2, 2023, investigators arrested Damron at her residence and seized approximately 211 grams of methamphetamine, 3.5 grams of fentanyl and a Kel-Tex .380-caliber pistol. Damron told the investigators that she had been previously supplied with 2 to 3 pounds of methamphetamine on multiple occasions by another individual.
Damron is scheduled to be sentenced on December 18, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. 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. 3:23-cr-19.
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Hudson County Real Estate Investor Sentenced to Two Years in Prison for Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, real estate investor was sentenced today to 24 months in prison for conspiring to orchestrate a fraudulent home equity line of credit scheme that led to over $400,000 in losses, U.S. Attorney Philip R. Sellinger announced today.
Anthony Garvin, 53, of Jersey City, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to one count of conspiracy to commit bank fraud and four counts of bank fraud. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between 2011 and 2014, Garvin orchestrated a scheme to defraud banks by conspiring with others to fraudulently obtain multiple home equity lines of credit, known as HELOCs, on real estate that Garvin owned. To hide his fraud from lenders, Garvin and his conspirators prepared and submitted loan applications that contained lies and fake supporting documents, including fake pay stubs, W-2 forms, tax returns, bank account statements, and deeds. Garvin split his fraud proceeds with his conspirators and defaulted on all of the loans. Garvin’s scheme ultimately resulted in over $400,000 in loses to the lenders.
In addition to the prison term, Judge Hayden sentenced Garvin to three years of supervised release.
Two conspirators previously pleaded guilty and are awaiting sentencing.
U.S. Attorney Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Blake Coppotelli and Anthony Torntore of the District of New Jersey.
Houma Man Indicted for Trafficking Fentanyl and HeroinRead the Press Release
NEW ORLEANS, LOUISIANA – ROBERT LEE ALLEN, age 35, a resident of Houma Louisiana, was charged today in a one-count indictment by a federal grand jury, announced U.S. Attorney Duane A. Evans.
Count 1 of the indictment alleges that ALLEN possessed with the intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin on March 20, 2023, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B). For this offense, he faces a statutory mandatory minimum sentence of five years, up to forty years imprisonment, a fine of up to $5,000,000, at least four years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by Homeland Security Investigations (HSI), the Houma Police Department, Terrebonne Parish Sheriff’s Office, and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Grandview Woman Pleads Guilty to $209,000 Disability Benefits FraudRead the Press Release
KANSAS CITY, Mo. – A Grandview, Mo., woman pleaded guilty in federal court today to fraudulently receiving more than $200,000 in disability benefits while operating a childcare business.
Sandra D. Mondaine, 63, pleaded guilty before U.S. Chief District Judge Beth Phillips to one count of theft of government money.
By pleading guilty today, Mondaine admitted that she received $209,309 in disability benefits over a 10-year period while she was self-employed as a childcare provider. Under the terms of today’s plea agreement, Mondaine must forfeit to the government a money judgment of $209,309.
Mondaine received Title II Disability Insurance benefits from January 2008 through December 2017. Less than a year after she was rewarded benefits, Mondaine became self-employed and filed taxes as a self-employed childcare provider. She did not report her self-employment to the Social Security Administration when she began her business.
Mondaine responded to several inquiries from the Social Security Administration in which she minimized and fraudulently represented earnings from her self-employment. Mondaine falsely claimed that her sons (who were incarcerated during a significant portion of her self-employment) were performing most of the work for her childcare business and were paid most of the profits.
Under federal statutes, Mondaine is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the Social Security Administration, Office of Inspector General.
Four Sentenced to Total of over 42 Years in Prison for 24 Hour String of Armed Robberies in IndianapolisRead the Press Release
INDIANAPOLIS- Crystal Daniels, Detavion Daniels, Brandon Brinson, and Aaron Collier have all be sentenced for their roles in a series of armed robberies that took place in Indianapolis.
Crystal Daniels, 23, was sentenced to 14 years’ imprisonment after pleading guilty to three counts of interference with commerce by robbery and two counts of brandishing a firearm in furtherance of a crime of violence. She was also ordered to pay $1,420 in restitution.
Detavion Daniels, 22, was sentenced to 15 years’ imprisonment after pleading guilty to three counts of interference with commerce by robbery and two counts of brandishing a firearm in furtherance of a crime of violence. He was also ordered to pay $1,420 in restitution.
Brandon Brinson, 25, was sentenced to 27 months’ imprisonment after pleading guilty to interference with commerce by robbery and was ordered to pay a $500 fine.
Aaron Collier, 21, was sentenced to 135 months’ imprisonment after pleading guilty to two counts of interference with commerce by robbery and brandishing a firearm in furtherance of a crime of violence and was ordered to pay $1,420 in restitution.
According to court documents, on April 21, 2021, at approximately 3:45pm Collier, C. Daniels, and D. Daniels entered the Cricket Wireless on Arlington Avenue in Indianapolis, wearing face masks, ball caps, and carrying backpacks. C. Daniels pretended to shop while D. Daniels distracted a female employee at the service counter. Collier entered the store last, walked directly to the female employee and held her at gun point while demanding her to open the register. The trio was unsuccessful in their attempt to rob the store and quickly fled in a Chevy Suburban.
Just 15 minutes after the attempted robbery at Cricket Wireless, the trio drove 4 miles north to a Dollar General, located on N. Shadeland Avenue, to commit another robbery. At approximately 4:00pm, the three robbers entered the store, Collier brandished a black semiautomatic pistol, jumped over the counter, and forced a female employee on her knees while he held her at gunpoint, demanding her to open the registers and the safe. The other two robbers took an employee to the safe behind the counter and demanded her to open it. Once she did, C. Daniels took the money and dumped it into a yellow Dollar General bag. Additionally, D. Daniels approached a male customer standing in line and robbed him of $40 cash and GMC car keys.
Later that same day, IMPD detectives and FBI agents located the getaway Suburban parked in the parking lot of the Liquor Cabinet. The trio robbed a nearby Family Dollar, using the same process as before, and leaving in the getaway vehicle. IMPD officers conducted a traffic stop on the van and searched it. Located inside the vehicle were four suspects: getaway driver, Brandon Brinson, and all three robbers. Officers also located the following items:
- a 10mm semi-automatic handgun.
- Black handgun magazine containing 15 live rounds of 10mm ammunition.
- 6 packs of Newport cigarettes taken from the Family Dollar.
- Collier’s face mask.
- 4 Swisher Sweet cigar packs taken from the Family Dollar.
- Blue PPU box of 10mm ammunition containing 5 live rounds.
- $187 in loose cash
Officers placed all four individuals under arrest and located the following cash amounts on each person:
- Brinson – $521 in cash and a black ski mask.
- Collier – $753 in cash
- C. Daniels – $497 in cash
- D. Daniels - $25 in cash
U.S. Attorney for the Southern District of Indiana, Zachary A. Myers and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office made the announcement.
“Every person deserves to feel safe where they live and work. These defendants terrorized and violently robbed innocent employees and customers,’ said U.S. Attorney for the Southern District of Indiana Zachary A. Myers. “Their violent, senseless crimes have no place in our communities, and we are safer with these individuals behind federal prison bars. I am grateful to the FBI and IMPD for ensuring that they are held accountable for their actions.”
The FBI and the Indianapolis Metropolitan Police Department investigated this case. The sentence was imposed by U.S. District Court Chief Judge, Tanya Walton Pratt. Judge Pratt also ordered that the defendants be supervised by the U.S. Probation Office following their release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Lawrence D. Hilton, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Former State Credit Union Advisor Indicted for Embezzling Money from Credit UnionRead the Press Release
KANSAS CITY, KAN. – A Kansas woman was arraigned today on federal charges in connection with a years-long scheme to steal hundreds of thousands of dollars from her employer, Muddy River Credit Union. Rita Hartman, 68, of Atchison was indicted by a federal grand jury on August 23, 2023.
According to court documents and other information presented in court, Hartman was the manager of Muddy River Credit Union (formerly Bradken Federal Credit Union) from the early 1990s through January 2021. Muddy River served the employees of the Bradken foundry located in Atchison, Kansas. In 2013, the Governor of the State of Kansas appointed Hartman to the Kansas Credit Union Council, which advises the Kansas Department of Credit Unions on issues and needs of credit unions.
As manager, Hartman had responsibility for and control over all aspects of Muddy River’s finances and books and records. From at least 2010 through December 2020, Hartman is accused of using her position to steal money from Muddy River. Hartman allegedly did so by crediting fraudulent deposits and loan payments to her or her relatives’ accounts or by stealing cash deposits, then concealing her conduct by altering Muddy River’s books and records, and falsifying information submitted to Muddy River’s regulators.
The Federal Bureau of Investigation (FBI) investigated the case.
Assistant U.S. Attorney Ryan J. Huschka is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Ithaca Postal Employee Pleads Guilty to Stealing Money OrdersRead the Press Release
SYRACUSE, NEW YORK – Stephen Perrine, age 40, of King Ferry, New York, pled guilty today in federal court in Syracuse to stealing money orders from the United States Postal Service (USPS). United States Attorney Carla B. Freedman and Special Agent in Charge Matthew Modafferi, United States Postal Service Office of Inspector General (USPS-OIG), Northeast Area Field Office, made the announcement.
In pleading guilty, Perrine admitted that while working for the USPS in Ithaca, New York, he stole ten money orders totaling $2,480, by issuing them to himself and entering fraudulent justifications in an USPS accounting system. For example, Perrine admitted that he stole and cashed a $400 money order on or about September 13, 2022, and that he documented the money order as having been issued as payment for “local transport.” Similarly, Perrine admitted that on November 15, 2022, he stole and cashed a $200 money order, which he fraudulently documented as having been issued as payment for “office supplies.” Perrine resigned his position with the USPS after he was charged criminally in this case. As part of his plea agreement, Perrine agreed to pay full restitution of $2,480 to the USPS.
The charges to which Perrine pled guilty carry a maximum sentence of 1 year in prison, a fine of up to $100,000, and a term of supervised release of up to 1 year. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Perrine will be sentenced on December 13, 2023, by United States Magistrate Judge Thérèse Wiley Dancks, who presides over the case.
USPS-OIG is the investigative agency, and Assistant U.S. Attorney Michael F. Perry is prosecuting the case.
Florida Woman Sentenced to More than 16 Years in Prison for Defrauding an Elderly Galesburg Woman and Others Throughout the United StatesRead the Press Release
PEORIA, Ill. – An Orlando, Florida, woman, Jasmine Annette Bradley, 37, was sentenced on September 6, 2023, to 16.5 years (198 months) for her role in a conspiracy to defraud and steal the identities of victims throughout the United States. The victims included an elderly woman from Galesburg who was suffering from dementia when Bradley stole her identity and credit.
In February 2023, Bradley had pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, two counts of mail fraud, five counts of wire fraud and two counts of aggravated identity theft in connection with the offense conduct.
At the sentencing hearing before U.S. District Judge James E. Shadid, the government presented evidence that between April 2018 and June 2019, Bradley participated in an elaborate scheme to steal the identities of individuals, obtain control of their phone numbers, and steal their mail. Using these stolen identities, Bradley and her co-conspirators rented luxury apartments, purchased utilities, rented cars, and otherwise lived a lavish lifestyle, including shopping trips and spa appointments. The people Bradley victimized were scattered across the United States and tended to be older individuals who had established a good working history and credit rating.
At Bradley’s sentencing, Judge Shadid heard from several of the victims in person. These victims discussed the damage Bradley had inflicted upon their lives and spoke about their resulting anxiety. One victim relayed a story about how Bradley stole the phone number that was connected to her terminally ill husband’s medical monitoring device and as a result it was not connected to his doctor’s office for several days. And the government explained how Bradley had exploited the Galesburg woman’s dementia in order to further her fraud and delay detection so that she could continue to spend the woman’s money.
Overall, Bradley’s scheme had at least 22 victims including three property-management companies, ten financial institutions, and nine individuals from Missouri, Ohio, Arizona, Florida, and Galesburg, Illinois. Bradley was responsible for a combined intended loss of $430,409.34.
At the hearing, Judge Shadid commented on the fact that the victims had all lived their lives in an exemplary fashion, despite personal challenges including a terminally ill spouse and other issues. He further noted that the victims had abided by a simple rule: “If it’s not yours, keep your hands off it.” The judge contrasted the lives of the victims with Bradley, whom he described as the type of person who only takes and does nothing to give back or try to make things better.
Given the severity of the offense conduct and the resulting harm to the victims and their families, Judge Shadid found that the sentencing guidelines range was not sufficient. The judge therefore imposed above-guidelines, concurrent sentences of 150 months’ imprisonment on the conspiracy, mail fraud, and wire fraud counts. Judge Shadid also imposed two consecutive 24-month sentences for the aggravated identity theft offenses, resulting in an aggregate sentence of 198 months.
The United States Postal Inspection Service investigated the case, with assistance from the Federal Bureau of Investigation, Springfield Office; the North Olmstad, Ohio, Police Department; Cape Girardeau, Missouri, Police Department; the Yuma, Arizona, Police Department; and Seminole County, Florida, Sheriff’s Office. Assistant U.S. Attorneys Douglas F. McMeyer and Paul B. Morris represented the Government in the prosecution.
Federal Grand Jury Indicts Shelbyville Woman for Wire FraudRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky returned an indictment on September 6, 2023, charging a Shelbyville woman with seven counts of wire fraud.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Robert Holman of the United States Secret Service Louisville Field Office made the announcement.
According to the indictment, between December 2019 and September 2021, Amy Hall, 37, as the Accounting Controller for a local design and construction company, stole more than $260,000 from her employer. She used access to the company’s credit card and bank account granted to her by virtue of her position as accountant to devise and execute a scheme to steal the company’s funds for her own use and benefit and for the use and benefit of others.
Hall made her initial court appearance on September 8, 2023, before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, Hall faces a maximum sentence of 140 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
United States Secret Service is investigating the case.
Assistant U.S. Attorney Nicole Elver is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts Buffalo Brothers on Charges of Narcotics Conspiracy and Selling FentanylRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an 11-count indictment charging Arquan Butler aka Easy, 25, and Jahaun Butler, 25, both of Buffalo, NY, with narcotics conspiracy, and distribution of crack cocaine and fentanyl. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine up to $1,000,000.
Assistant U.S. Attorney Louis A. Testani, who is handling the case, stated that according to the indictment, between May 9 and July 5, 2023, the defendants conspired with others to sell fentanyl and crack cocaine in the Buffalo and Cheektowaga, NY, areas. The investigation included controlled purchases of crack cocaine and/or fentanyl on 10 separate occasions.
Jahuan Butler appeared before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. today for a detention hearing and was released on conditions. Arquan Butler will be arraigned on September 28, 2023.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the New York State Police, under the direction of Major Brian Ratajczak, and the Amherst Police Department, under the direction of Chief Scott Chamberlin.
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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Federal Grand Jury Indicts Buffalo Brothers on Charges of Narcotics Conspiracy and Selling FentanylRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an 11-count indictment charging Arquan Butler aka Easy, 25, and Jahaun Butler, 25, both of Buffalo, NY, with narcotics conspiracy, and distribution of crack cocaine and fentanyl. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine up to $1,000,000.
Assistant U.S. Attorney Louis A. Testani, who is handling the case, stated that according to the indictment, between May 9 and July 5, 2023, the defendants conspired with others to sell fentanyl and crack cocaine in the Buffalo and Cheektowaga, NY, areas. The investigation included controlled purchases of crack cocaine and/or fentanyl on 10 separate occasions.
Jahuan Butler appeared before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. today for a detention hearing and was released on conditions. Arquan Butler will be arraigned on September 28, 2023.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the New York State Police, under the direction of Major Brian Ratajczak, and the Amherst Police Department, under the direction of Chief Scott Chamberlin.
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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Family Members of Woman Convicted of Fraud Settle Claims Arising from Pandemic Relief LoansRead the Press Release
ALBANY, NEW YORK – Several family members of an Albany woman convicted of pandemic relief fraud recently agreed to pay the Government a total of about $305,000. The civil settlements are related to the prosecution of Debra Hackstadt, of Albany, who was sentenced to 16 months in prison, on November 8, 2022, for fraudulently obtaining 32 government-backed loans meant for businesses struggling with the financial effects of the coronavirus pandemic.
United States Attorney Carla B. Freedman and Alfred Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Two of the fraudulently obtained loans were made to Albany resident Danielle Hackstadt, Debra’s daughter. Danielle Hackstadt has agreed to pay $114,816 under the False Claims Act for fraudulently obtaining, with her mother’s assistance, a $42,500 Economic Injury Disaster Loan (EIDL), which was issued by the U.S. Small Business Administration (SBA), and a $14,908 loan under the Paycheck Protection Program (PPP), which was issued by a private financial institution and backed by the federal government.
In her July 2020 EIDL application, Danielle Hackstadt was listed as the sole proprietor of a “health services” company with gross revenue of $85,000. And in her August 2020 PPP loan application, Danielle Hackstadt was listed as the sole proprietor of a “cleaning company” with gross receipts of $82,547. She has admitted that, in July and August 2020, she was an employee of an insurance company and had no sole proprietorship. She further admitted that she knew that her mother was applying for the PPP loan and EIDL in her name; she personally received the loaned funds, knowing they came from COVID-relief programs intended to benefit struggling businesses; and she spent the loaned funds for her personal benefit.
In a separate matter, in February 2023, the U.S. Attorney’s Office filed a lawsuit seeking the civil forfeiture of a lakefront residence and property off Great Sacandaga Lake in Saratoga County, New York, alleging that a portion of the property had been purchased with pandemic relief funds that Debra Hackstadt fraudulently obtained and then transferred to family members.
In June 2023, the Government and Albany residents Gerald and Traci Hackstadt, Debra’s son and daughter-in-law, entered into a settlement agreement in which the Hackstadts agreed to pay $190,000 to satisfy the claim; payment of the $190,000 has since been made.
United States Attorney Carla Freedman stated: “Debra Hackstadt showered ill-gotten pandemic relief funds upon her family members. These settlements prove that her crimes did not pay, and that we will use every tool at our disposal to follow the money and recover ill-gotten gains. In addition to criminal prosecutions, we can file False Claims Act lawsuits – with the potential for treble damages – and asset forfeiture actions. When appropriate, we can also seek recovery from people who financially benefitted from fraud even if they did not commit fraud themselves.”
FBI Acting Special Agent in Charge Alfred Watson stated: “Debra Hackstadt deliberately took money from programs designed to help American businesses struggling financially during the pandemic and instead used it to line the pockets of her own family members. These settlements should prove the FBI is committed to working closely with our federal, state, and local partners to protect federally funded relief programs. Together, we will work diligently to ensure fraudulently obtained funds are tracked down and returned so they can be put to use to assist the millions of honest Americans who need them most.”
The FBI and the U.S. Attorney’s Office’s Asset Recovery Unit conducted the investigation that led to these settlements.
Assistant U.S. Attorney Adam J. Katz represented the United States in the Danielle Hackstadt matter, and Assistant U.S. Attorney Elizabeth Conger represented the United States in the asset forfeiture action.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Fairfax Man Pleads Guilty to Child Sexual Abuse Material ChargesRead the Press Release
ALEXANDRIA, Va. – A Fairfax man pleaded guilty today to receipt of child sexual abuse material (CSAM), receipt of obscene visual representations of the sexual abuse of children, and possession of CSAM.
According to court documents, since at least April 2018, James Andrew Whitney, 62, used an Internet‑based peer‑to‑peer file‑sharing service to seek out and download video and image files depicting minors engaged in sexually explicit conduct. Some of the images and videos depicted prepubescent minors and minors under the age of 12. Moreover, as early as April 2010, Whitney used the CSAM he downloaded to create projects in which he photoshopped prepubescent, naked minor females into photographs around his residence and narrated a sexual encounter between himself and the minor victims. Whitney also used the file‑sharing service to seek out and download obscene, computer‑generated material depicting, among other scenes, the abduction of a child from a playground and subsequent rape of that minor.
Whitney is scheduled to be sentenced on January 12, 2024. He faces a mandatory minimum of 5 years in prison and a maximum penalty of 20 years imprisonment for each charge. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after U.S. District Judge Patricia Tolliver Giles accepted the plea.
Special Assistant U.S. Attorney Rachel L. Rothberg and Assistant U.S. Attorney Vanessa Strobbe are prosecuting the case.
The forensic examiners of the Child Exploitation and Obscenity Section’s High Technology Investigative Unit provided significant assistance in this case.
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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-124.
Four Nashville Residents Charged with Unlawful Trafficking of FirearmsRead the Press Release
NASHVILLE – Arnold Marks, 25, Kamal Fakhry, 43, Mykyta Strukov, 30, and Cassetty Carver, 22, all of Nashville, Tennessee, were arrested after being charged with weapons trafficking and a conspiracy to commit weapons trafficking. Marks was also charged with numerous additional crimes related to being a previously convicted felon in possession of a firearm and unlawfully possessing a machine gun, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
The indictment alleges that from April 2023 to August 2023, defendants were unlawfully selling firearms to previously convicted felons, and using a convenience store in Nashville operated by Fakhry as a front for selling firearms illegally.
Over the course of the months-long investigation, law enforcement recovered thirty-four firearms that the defendants were attempting to unlawfully sell to convicted felons and other individuals who were prohibited by state and federal law from possessing firearms. Federal agents also recovered two machine guns that Marks intended to sell to someone that he knew was a previously convicted felon. Marks himself is a previously convicted felon for committing attempted especially aggravated robbery in 2017. Marks was on probation throughout the course of the conspiracy alleged in the indictment.
Last week, federal, state, and local law enforcement officers searched seven locations throughout Nashville and arrested all of the defendants. During these searches, law enforcement recovered 45 additional firearms, including a short-barreled shotgun and short-barreled rifle that were illegally modified, thousands of rounds of ammunition, approximately sixteen pounds of marijuana, and other suspected controlled substances that will undergo laboratory testing.
“Illegal gun trafficking is fueling the violent crime taking place in communities throughout Middle Tennessee,” said United States Attorney Henry C. Leventis. “We will continue to focus our efforts on preventing criminals from gaining access to guns and holding gun traffickers accountable.”
This case is being prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Metro Nashville Police Department, and the Tennessee Highway Patrol. Assistant U.S. Attorney Josh Kurtzman is prosecuting the case.
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Deputy Attorney General Lisa O. Monaco Statement on the 22nd Anniversary of the Terrorist Attacks of Sept. 11, 2001Read the Press Release
The Justice Department issued the following statement from Deputy Attorney General Lisa O. Monaco on the 22nd anniversary of the terrorist attacks of September 11, 2001:
“Twenty two years ago, we lost almost 3,000 of our fellow Americans in what remains the deadliest terrorist attack in our nation’s history. In the years since, the men and women of the Justice Department have worked tirelessly to prevent terrorist attacks before they happen and hold accountable those who engage in violent extremism. The threats our country faces continue to evolve but our commitment to protecting the American people will never waver.”
Colorado Psychiatry Practice and Owner Agree to Pay $1.9 Million to Settle Allegations of Fraudulent BillingRead the Press Release
DENVER—The United States Attorney’s Office for the District of Colorado announced that Mile High Psychiatry LLC and its owner, Michael K. Chism, II, have agreed to pay $1.9 million to resolve allegations that they violated the False Claims Act by knowingly double-billing time in order to unlawfully obtain increased payments from Medicare and Medicaid.
Mile High Psychiatry is a Colorado company located in Aurora that provides telepsychiatry services throughout Colorado. The United States alleged that from 2017 to 2021, Mile High Psychiatry and Chism submitted inflated bills to Medicare and Medicaid seeking payment both for evaluation and management services and for psychotherapy services, provided during the same patient visit. The rules for Medicare and Medicaid are clear that these services must be separately identifiable, and time spent providing one service cannot be double counted in billing for time spent providing the other service. The United States alleged that Mile High Psychiatry and Chism knowingly disregarded this rule and improperly double-counted time for these separate services to unlawfully obtain increased reimbursement for thousands of patient visits.
The allegations were brought to the federal government’s attention by a whistleblower through a False Claims Act action. The qui tam or whistleblower provisions of the False Claims Act allow a private party to file an action on behalf of the United States and receive a portion of the recovery. The whistleblower will receive approximately $325,000 as her share of the settlement.
“We will forcefully go after providers who unlawfully bill Medicare and Medicaid. These programs provide vital services for our community, and we will not allow providers to abuse the system or waste taxpayer dollars,” said U.S. Attorney Cole Finegan. “This case shows the power of whistleblowers to identify and stop fraud. The law permits generous rewards to whistleblowers who reveal wrongdoing by coming forward with valuable information.”
“We expect health care providers who participate in federal health care programs to submit only appropriate claims. When providers do overbill Medicare and Medicaid, they threaten the integrity of these safety net programs,” said Special Agent in Charge Curt L. Muller with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “In coordination with fellow law enforcement agencies, HHS-OIG will continue to tirelessly investigate and address allegations involving inappropriate billing.”
The claims against Mile High Psychiatry and Chism are allegations, and in agreeing to settle this matter, they did not admit to any liability.
This investigation was the result of a coordinated effort by the U.S. Attorney’s Office for the District of Colorado; HHS-OIG; and the Colorado Attorney General’s Medicaid Fraud Control Unit. The settlement was handled by Assistant United States Attorney David Moskowitz.
Case number: 21-cv-00393
Chinese National Admits to Trafficking Counterfeit Gift Cards to BellevilleRead the Press Release
EAST ST. LOUIS, Ill. – A woman originally from China admitted involvement in counterfeit gift card scheme directed at Target shoppers across the Midwest, after she pled guilty to the federal crime in a U.S. District courtroom in East St. Louis on Thursday.
Hongying Wang, 53, originally of Hunan Province, China, admitted guilt to using and trafficking in a counterfeit access device. For the charge, Wang faces a statutory maximum of ten years imprisonment and a fine of up to $250,000.
“Protecting consumers from fraud is a familiar battle, but individuals deliberately placing fake gift cards onto sales racks with the intention of stealing the funds from patrons is a new low, and I applaud the law enforcement officials who are investigating this case,” said U.S. Attorney Rachelle Aud Crowe.
“Fraud is often mistaken for a victimless crime but when individuals like Wang commit these types of crimes, they are most certainly victimizing consumers and businesses,” said Special Agent in Charge of the HSI Chicago Area of Operations Sean Fitzgerald. “HSI works daily to protect our community from these individuals by partnering with our local and federal partners to not only keep these counterfeit products out of the hands of unsuspecting consumers, but to also hold accountable those who attempt to profit from scamming the public.”
"The Illinois State Police is committed to stopping trafficking, whether it is trafficking in guns, drugs, or in this case - counterfeit goods," said Illinois State Police Director Brendan F. Kelly.
According to court documents, the scheme involved individuals placing altered gift cards on the sales racks at Target while retaining the access numbers. Once a gift card was loaded with money by an unsuspecting patron, the fraudsters would have the codes needed to steal the funds.
In January 2023, a Target security officer observed Wang and a co-defendant placing gift cards onto the racks in the Belleville store for customers to purchase. Upon further review, the gift cards were altered with the codes scratched off and covered by stickers to appear untouched.
In addition to Belleville, the following Target locations across the Midwest were knowingly affected by the scheme: Albuquerque, New Mexico; Norman, Oklahoma; Edmond, Oklahoma; Liberty, Missouri; Independence, Missouri; St. Peters, Missouri; Town and Country, Missouri; and Brentwood, Missouri.
If you believe you are a victim, contact the U.S. Attorney’s Office by emailing: [email protected]. Please provide your full name, mailing address, telephone number, and email address.
Wang admitted to possessing 6,100 fake gift cards with intent to place on the shelves.
Guangwei Gao, also of China, was named and charged in the indictment with one count of using and trafficking in a counterfeit access device.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Wang’s sentencing is set for 10:30 a.m. on Jan. 22, 2024, at the federal courthouse in East St. Louis.
Homeland Security Investigations (HSI) and the Illinois State Police (ISP) are leading the investigation, and Assistant U.S. Attorney Peter T. Reed is prosecuting the case.