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8 September 2023
Billings Man Sentenced to Prison for Coercion and EnticementRead the Press Release
BILLINGS — Marshall Vincent Lucas, a 42-year-old Billings man, was sentenced on Tuesday for coercing a minor girl to engage in sexual conduct with him and into producing sexually explicit images of herself after providing the girl with a laptop, U.S. Attorney Jesse Laslovich said.
U.S. District Judge Dana Christensen sentenced Lucas to 14 years in prison followed by 10 years of supervised release. The defendant pleaded guilty in February.
The government alleged in court documents that in September 2021, Lucas provided the victim, Jane Doe 1, who is under the age of 16 years, with a laptop for purposes of communicating with her. Lucas had met Jane Doe 1 through her mother. Lucas began to correspond with Jane Doe 1 using an alias. Through electronic and in-person communications, Lucas asked Jane Doe 1 how she felt about him and requested nude pictures of her and to engage in sexual conduct with him. Lucas persisted, and ultimately engaged in sexual conduct with Jane Doe 1 and she provided him with nude pictures of herself that she produced as his direction. Lucas also sent Jane Doe 1 nude pictures of himself and instructed her to delete electronic communications between them.
Assistant U.S. Attorney Zeno B. Baucus prosecuted the case, which was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force and the Musselshell County Sheriff’s Office.
Artificial Turf Company Owner Sentenced to 15 Months in Prison for Tax Evasion by Failing to Report Nearly $9 Million in Business IncomeRead the Press Release
SANTA ANA, California – The owner of a Newport Beach-based artificial turf company was sentenced today to 15 months in federal prison for failing to report nearly $9 million in income his business earned and for attempting to evade the payment of more than $946,000 in federal income taxes.
Craig Steven Voyton, 56, of San Pedro, was sentenced by United States District Judge John W. Holcomb, who also ordered him to pay a fine of $50,000.
Voyton pleaded guilty on July 7 to one count of tax evasion.
Voyton owns and operates Smart Grass LLC, which installs artificial turf for residential and commercial customers in Orange and Los Angeles counties.
From 2016 to 2020, Smart Grass generated more than $1.5 million in gross income per year from its business operations, and – not wanting to pay taxes that income – Voyton attempted to conceal that income from the IRS.
To do so, Voyton emailed customers federal tax forms listing false identification information, so, if and when the customers reported to the IRS the payments they had made to him and his company, those payments would not be linked directly to Voyton or Smart Grass for tax purposes.
On three occasions in 2020, Voyton emailed to customers in Los Angeles and Beverly Hills an IRS Form W-9 with false information and a signature in a fictitious identity. Voyton sent similar fraudulent IRS Forms W-9 during the tax years 2016, 2017, 2018 and 2019. Voyton also provided a false IRS Form W-9 to a school in Irvine in August 2016.
While attempting to evade the payment of taxes during this time, Voyton made more than $63,000 in transfers to the Coinbase cryptocurrency exchange from a Smart Grass bank account. Voyton also used more than $500,000 in company funds to make real estate purchases in Nevada and Mexico.
In total, Voyton failed to report approximately $8,926,333 in income, which prevented the IRS from assessing the total sum of approximately $946,479 in federal income taxes for the tax years 2016 through 2020.
Prior to today’s sentencing hearing, Voyton paid the IRS all the back taxes he owes, plus interest, as well as paying an additional 75% fraud penalty.
“[Voyton] was a businessowner who operated a business in Orange and Los Angeles counties,” prosecutors argued in a sentencing memorandum. “He generated more than a million dollars in business income each year. He reported not one dime of that to the IRS.”
IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office prosecuted this case.
Activity in the United States Attorney's OfficeRead the Press Release
Violent Crime
Shawn Lee Gardner, age 24, of Riverton, Wyoming, was sentenced on September 1, 2023, to 34 months’ imprisonment for sexual abuse of a minor. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence which includes five years of supervised release following Gardner’s prison term, and approximately $832 in restitution. According to court documents, Gardner engaged in sex with a 12-year-old girl, whom he had met on Snap Chat. The case was prosecuted by Assistant U.S. Attorney Kerry J. Jacobsen. Gardner was indicted by the federal grand jury in March and pled guilty in June, 2023.
Drug Trafficking
Kevin Paul Johnson, age 48, of Casper, Wyoming, was sentenced on September 5, 2023, to 120 months’ imprisonment for possession with intent to distribute methamphetamine. U.S. District Court Judge Alan B. Johnson imposed the sentence which includes five years of supervised release, after the prison term, and $500 community restitution. According to court documents, on December 28, 2022, the Wyoming Division of Criminal Investigation (DCI) searched Johnson’s residence and seized approximately 1.2 kilograms of methamphetamine and $2,152 in cash. Johnson was charged by the U.S. Attorney’s Office in May and pled guilty in June, 2023.
Christopher Willmer, age 50, of Casper, Wyoming, was sentenced on August 21, 2023, to 48 months’ imprisonment for possession with intent to distribution of fentanyl. U.S. District Court Judge Alan B. Johnson imposed the sentence which includes three years of supervised release. According to court documents, on December 29, 2022, Laramie County Sheriff’s Office deputies assisted Wyoming Probation and Parole with a search of a Cheyenne hotel room that was shared by Willmer and a woman on probation. During a pat down, Wilmer dropped multiple suspected fentanyl pills from his hand onto the floor. Deputies also located two bags of suspected fentanyl pills in Wilmer's right sock. In total after the search of the hotel room was completed, deputies located approximately 500 fentanyl pills. Willmer was indicted by the federal grand jury in March and pled guilty in April, 2023. This crime was investigated by the Laramie County Sheriff’s Office and the Drug Enforcement Administration. Assistant U.S. Attorney Timothy J. Forwood prosecuted the case.
Reggie Dale Nelams, age 45, of Louisiana, and Tawna Goodwin-McMurry, age 44, of Casper, Wyoming, were sentenced for conspiracy to distribute methamphetamine and fentanyl. Nelams was sentenced on September 1, 2023, to 57 months’ imprisonment and Goodwin-McMurry was sentenced on June 6, 2023, to 36 months’ imprisonment. Chief United States District Court Judge Scott W. Skavdahl imposed the sentences, each of which included four years of supervised release following imprisonment and $500 community restitution. According to court documents, in January 2021, the Wyoming Division of Criminal Investigation (DCI) learned that Nelams was distributing controlled substances in Natrona County. During the investigation, a traffic stop on Nelams’ vehicle resulted in the seizure of over 400 grams of methamphetamine and 120 grams of fentanyl. When interviewed, Nelams admitted to selling controlled substances in Natrona County and Riverton, Wyoming. A review of Nelams’ phone uncovered messages related to drug trafficking with Goodwin-McMurry and others. Agents also found a drug ledger documenting Goodwin-McMurry’s drug purchases from Nelams. Nelams and Goodwin-McMurry were indicted in January and each pled guilty in March 2023. This crime was investigated by the Wyoming Division of Criminal Investigation. Assistant United States Attorney Jonathan C. Coppom prosecuted the case.
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
7 September 2023
Wichita Man Facing Child Porn ChargesRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging a Kansas man with crimes related to child pornography.
Eric Caleb Carlson, 43, of Wichita is charged with one count of receipt of child pornography and one count of possession of child pornography.
According to court documents, Synchronoss Technologies submitted two reports in June 2023 to the National Center for Missing and Exploited Children (NCMEC) regarding uploads of files containing child sexual abuse and exploitation materials to its cloud based backup service.An investigation led law enforcement authorities to identify and arrest Carlson.
Homeland Security Investigations (HSI) and the Kansas Internet Crimes Against Children (ICAC) Task Force are investigating the case.
Assistant U.S. Attorney Molly Gordon is prosecuting the case.
Project Safe Childhood
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 https://www.justice.gov/psc.OTHER INDICTMENTS
Derek Bell, 32, of Wichita was indicted on one count of prohibited person in possession of a firearm and one count of possession of methamphetamine with intent to distribute. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is investigating the case. Assistant U.S. Attorney Katie Andrusak is prosecuting the case.
John Ray Gaffney, 45, of Wichita was indicted on one count of possession with intent to distribute methamphetamine. The Wichita Police Department and the Drug Enforcement Administration (DEA) are investigating the case. Assistant U.S. Attorneys Katie Andrusak and Ola Odeyemi are prosecuting the case.
Johnny Lee Ivory III, 37, of Topeka was indicted on one count of possession with intent to distribute fentanyl. The Drug Enforcement Administration (DEA) is investigating the case. Assistant U.S. Attorney Ola Odeyemi is prosecuting the case.
Craig E. Jones, 48, of Sedgwick was indicted on one count of possession of methamphetamine with intent to distribute. The Wichita Police Department and the Drug Enforcement Administration (DEA) are investigating the case. Assistant U.S. Attorneys Katie Andrusak and Ola Odeyemi are 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.
###West Virginia Inmate Sentenced to Prison for Sending Obscene Matter to a MinorRead the Press Release
CHARLESTON, W.Va. – Darrin Alonzo Miller, 41, was sentenced today to three years and one month in prison, to be followed by three years of supervised release, for transfer of obscene material to a minor under the age of 16. Miller must also register as a sex offender.
A federal jury convicted Miller after a one-day trial on June 13, 2023. Evidence at trial proved that on June 22, 2020, Miller sent a letter through the United States mail to a 14-year-old girl while he was an inmate at the Parkersburg Correctional Center. In the letter, Miller described in graphic detail he and the minor female engaging in sexual intercourse upon his release from incarceration.
“Darrin Alonzo Miller engaged in reprehensible conduct, seeking to pressure a minor to have sex with him, and this sentence serves to protect his victim as well as the public,” said United States Attorney Will Thompson. “I commend the West Virginia State Police for investigating this case, and I also commend Assistant United States Attorneys Jennifer Rada Herrald and Francesca C. Rollo and our trial team for securing the guilty verdict.”
United States District Judge Joseph R. Goodwin imposed the sentence.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-261.
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Union County Man Sentenced to 42 Months in Prison for Disaster Benefits Fraud, Business Impersonation Fraud, COVID-19 Loan Fraud, and Treasury Check FraudRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 42 months in prison for disaster benefits fraud, business impersonation fraud, COVID-19 loan fraud, and Treasury check fraud, U.S. Attorney Philip R. Sellinger announced.
Roy John Depack Jr., 49, of Union, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of disaster fraud, two counts of wire fraud, and one count of forging or fraudulently endorsing Treasury checks. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In September 2021 and October 2021, Depack filed two applications with the Federal Emergency Management Agency (FEMA) fraudulently seeking disaster relief provided in the wake of Tropical Storm Ida. In one application, Depack falsely claimed to be another individual and the owner of a property in Newark, and in the other application, Depack falsely stated that he was the owner of a property in Union that he actually rented. Based on Depack’s misrepresentations, FEMA granted one of Depack’s applications and awarded Depack $24,069 in disaster assistance.
From 2020 through 2022, Depack defrauded victim companies by pretending to be representatives of various other companies and ordering merchandise that Depack then intercepted. He fraudulently obtained tens of thousands of dollars in merchandise from two different companies.
In January 2021, Depack also submitted a fraudulent Economic Injury Disaster Loan (EIDL) application to the U.S. Small Business Administration and falsely claimed to be another individual and to own a cleaning company based in Union, New Jersey.
In September 2021, Depack improperly obtained, endorsed, and deposited at least two checks issued by the U.S. Treasury and made out in the names of two other individuals, which value totaled more than $1,000.
In addition to the prison term, Judge Martini sentenced Depack to three years of supervised release and ordered him to pay $123,489 in restitution.
U.S. Attorney Sellinger credited postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents with the U.S. Department of Homeland Security – Office of Inspector General, New York Field Office, under the direction of Special Agent in Charge Brian C. McCarthy; and special agents with the Treasury Inspector General for Tax Administration, Mid Atlantic Field Division, under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Mark J. Pesce of the Economic Crimes Unit in Newark.
Two Men Arrested for Child ExploitationRead the Press Release
SAN JUAN, Puerto Rico – In two separate cases, Federal Bureau of Investigations special agents, with the support of the Puerto Rico Police Bureau, arrested two men charged with child exploitation.
According to court documents, from June 2022 through June 2023, Rafael A. Pérez Rodríguez, 19, from Ponce, PR knowingly transported child exploitation material in his cellular phone; distributed and received child pornography; and possessed images of child pornography, including pictures of prepubescent minors, or minors who had not attained 12 years of age. Assistant United States Attorney Emelina M. Agrait Barreto, from the Child Exploitation and Immigration Unit, is prosecuting this case.
In an unrelated case, FBI arrested Emiliano Echevarría Collado, 41, from Ponce, PR, for attempted production and attempted possession of child pornography. From October 1st through October 2, 2021, Echevarría Collado attempted to employ, use, persuade, induce, entice, and coerce a 15-year-old female minor to engage in sexually explicit conduct. Assistant U.S. Attorney Daynelle Álvarez-Lora of the Child Exploitation and Immigration Unit is prosecuting the case.
“Soliciting the production of child sexual abuse material is a particularly disturbing crime,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “The arrests that we announced today reflect the unwavering commitment of our prosecutors and law enforcement partners to stand up for victims and to hold offenders accountable for their conduct.”
“Children are not only the most vulnerable members of society but also its future,” said Joseph González, Special Agent in Charge of the FBI’s San Juan Field Office. “Criminals who target children are a threat to the very fabric of strong and functional communities. This is why the FBI is committed to continuing our work of putting these violent sex offenders behind bars and we urge the public to report these heinous crimes by calling 787-987-6500 or leaving a tip online visiting tips.FBI.gov”.
If convicted, Rafael A. Pérez Rodríguez faces a minimum sentence of 10 years up to 20 years in prison. Emiliano Echevarría Collado faces a statutory minimum sentence of 15 years up to 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI San Juan Field Office is investigating the cases.
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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Tennessee Man Sentenced to the Maximum Punishment of 20 years in Federal Prison for Bank RobberyRead the Press Release
FAYETTEVILLE – A Tennessee man was sentenced yesterday to 240 months (the statutory maximum) in prison followed by three years of supervised release on one count of Bank Robbery. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, on January 10, 2023, Danny Ray Madison, age 58, entered the First Security Bank on Wedington Drive in Fayetteville, represented that he was armed and robbed the bank, taking an undisclosed amount of U.S. currency. With the assistance of local businesses, detectives with the Fayetteville Police Department were able to identify and arrest Madison that same day. During an interview with a detective from the Fayetteville Police Department and a Special Agent with the FBI, Madison admitted that he traveled to Fayetteville for the sole purpose of robbing a bank. Court documents revealed that Madison has three prior federal bank robbery convictions from North Carolina, Florida and Tennessee.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Fayetteville Police Department and the FBI investigated the case.
Assistant U.S. Attorney David Harris prosecuted the case.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Tennessee Man Sentenced to Two Years in Prison for Illegally Trafficking at Least 30 FirearmsRead the Press Release
BOSTON – A Tennessee man was sentenced today in federal court in Boston for trafficking at least 30 firearms in the Boston area.
John Pierre, 27, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to two years in prison and three years of supervised release. On Feb. 17, 2022, Pierre pleaded guilty to an Indictment.
In March 2022, Pierre was arrested at South Station in Boston carrying a bag containing 11 firearms, large capacity magazines and numerous rounds of ammunition. A subsequent investigation revealed that Pierre had moved from Massachusetts to Tennessee where he legally purchase firearms. Additionally, Pierre travelled back and forth from Tennessee to Massachusetts on numerous occasions with at least 30 firearms that he illegally sold in the Boston area as part of his gun trafficking operation.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorney John T. Dawley Jr. of the Organized Crime & Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Tennessee Man Pleads Guilty to Failure to Pay Child SupportRead the Press Release
CHARLESTON, W.Va. – Jancent M. Powell, 39, of Tullahoma, Tennessee, pleaded guilty today to failure to pay child support obligations. Powell admitted that he owes over $10,000 in court-ordered child support.
According to court documents and statements made in court, on November 18, 2013, the Family Court of Wood County, West Virginia, ordered Powell to pay $361 a month in child support for his twin daughters. Powell admitted that made only six of the monthly payments, all in 2014.
Powell is scheduled to be sentenced on November 30, 2023, and faces a maximum penalty of two years in prison, one year of supervised release, and a $10,000 fine. Powell also owes restitution for the over $10,000 in unpaid child support, which includes interest.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Health and Human Services-Office of Inspector General (DHHS-OIG).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Jonathan T. Storage is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-100.
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Stockton Man Indicted for Being a Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single count indictment today against Sophondara Hun, 27, of Stockton, charging him with being a felon in possession of ammunition, United States Attorney Phillip A. Talbert announced.
According to court documents, law enforcement officers were dispatched to a report of a prowler at an apartment complex. The reporting party stated a man was inside of her apartment after gaining entry through a window. When officers arrived at the apartment, they discovered an open window and observed Hun sleeping on a bed in the apartment. Officers entered the front of the apartment after being let in by the resident and arrested Hun. During his arrest, law enforcement searched Hun and found multiple .22 caliber bullets in his possession. At the time of the search, Hun was on parole for a prior felony offense. Hun is prohibited from possessing ammunition because he has multiple prior state felony convictions, including assault on a person with a firearm, assault with a deadly weapon with force–possible great bodily injury, vandalism, and evading law enforcement in a vehicle.
This case is the product of an investigation by the Stockton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The San Joaquin County District Attorney’s Office provided assistance. Assistant United States Attorney Haddy Abouzeid is prosecuting the case.
If convicted, Hun faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 U.S. Department of Justice 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.
Statement of U.S. Attorney Damian Williams on the Guilty Plea of Ryan Salame, Former CEO of FTXRead the Press Release
“Ryan Salame agreed to advance the interests of FTX, Alameda Research, and his co-conspirators through an unlawful political influence campaign and through an unlicensed money transmitting business, which helped FTX grow faster and larger by operating outside of the law. Today’s guilty plea reflects the commitment I made in December that my Office would continue to pursue swift justice against individuals at FTX and its affiliates who engaged in criminal conduct.”
St. Louis County Man Admits Buying Stolen Catalytic ConvertersRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri on Thursday admitted buying thousands of dollars’ worth of stolen catalytic converters.
Asmir Jasarevic, 33, of Lakeshire, pleaded guilty in U.S. District Court in St. Louis to one count of conspiracy to transport and sell stolen goods. He admitted posting a solicitation on Facebook on June 9, 2021 falsely claiming to be a licensed dealer who wanted to purchase catalytic converters. Jasarevic made a “significant” number of purchases when he had direct knowledge that the catalytic converters were stolen, he admitted in his plea. He had no place of business and bought converters at his apartment or public places such as parking lots or gas stations. He kept no records, offered no receipts and paid only in cash, offering well below market value. He conducted business at night and often conducted multiple transactions with individuals who obviously didn’t have the resources to own multiple vehicles, his plea says.
After purchasing the converters, Jasarevic took them to a recycling company in Illinois. He sold just under $50,000 worth of converters to the recycling company, $20,000 of which came from stolen property, Jasarevic admitted in his plea.
Catalytic converters contain trace amounts of precious metals and have been cut off vehicles around the country by thieves.
Jasarevic is scheduled to be sentenced December 6. The conspiracy charge carries a penalty of up to five years in prison, a $250,000 fine, or both.
Homeland Security Investigations and the Maryland Heights Police Department investigated the case. Assistant U.S. Attorney John Ware is prosecuting the case.
St. Louis Area Siblings Sentenced for Pandemic FraudRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk this week sentenced two siblings to 15 months in prison each and ordered them to repay $448,536 in pandemic loans that they’d fraudulently obtained.
Irvin Coats, 44, of Florissant, was sentenced Thursday and Pamela S. Hubbard, 46, of St. Louis, was sentenced Tuesday
Coats pleaded guilty June 5 to one count of conspiracy to commit wire fraud. Hubbard pleaded guilty to the same charge May 31. Both admitted fraudulently applying for and receiving Paycheck Protection Program loans that were intended to help struggling small businesses and save jobs. The pair sought the money not for the intended purpose but to open a “Wing Strip” restaurant in Florissant.
Assistant U.S. Attorney Kyle Bateman said during Thursday’s hearings that the PPP loan program was intended to be a lifeline for millions of people who were affected by the pandemic. “While all those people were struggling, the defendant and his co-defendant found an opportunity,” he said, adding that loan money Coats and Hubbard received was not available to help others.
On May 8, 2020, Coats applied for a $53,125 loan in the name of a defunct security company, Abounding Protection LLC, that had no revenue or employees. He falsely claimed to employ 12 people and claimed he would use the loan to help pay their total monthly salaries of $21,250. He also submitted a false IRS tax form W-3 to support his application. He was successful in fraudulently obtaining the loan.
On March 5, 2021, Coats applied for and later received a second loan for $24,166. He again made false statements in the loan application and submitted a fraudulent IRS form.
On June 11, 2020, Hubbard sought and later received a $371,245 loan for Star Shyne LLC, a cleaning service. She falsely inflated the number of employees and submitted fraudulent financial reports and IRS forms and an altered check in support of her loan.
Hubbard and Coats used the money to construct the Wing Strip and for improvements on their mother’s condominium in Florissant. That condo has been sold and the $82,351 in proceeds will go towards repaying the PPP loans.
The FBI investigated the case. Assistant U.S. Attorney Kyle Bateman prosecuted the case.
Sommelier Sentenced for Failing to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Mark Bernal, a/k/a “Mark Reyes”, 49, of Omaha, Nebraska, was sentenced today in federal court in Omaha for failing to register as a sex offender pursuant to the Sex Offender Registration and Notification Act. United States District Court Judge Brian C. Buescher sentenced Bernal to imprisonment for 5 months in the Bureau of Prisons. There is no parole in the federal system. After his release from federal prison, Bernal will begin a 2-year term of supervised release. Additionally, Bernal was ordered to pay a fine of $5,000.
On January 8, 2009, Bernal was convicted of possession of child pornography (3 counts) in Will County, Illinois. He was sentenced to three years in jail and has since been required to register as a sex offender in any state in which he resides pursuant to the Sexual Offender Registration and Notification Act (SORNA), a federal law.
On June 15, 2021, Chicago police attempted to locate Bernal at his residence in Illinois after he was overdue for his annual sex offender registration. The building manager stated that Bernal moved out on April 1, 2021, with his new spouse but did not leave a forwarding address.
In the summer of 2022, the U.S. Marshals Service (USMS) learned that Bernal was working as a sommelier in Nebraska using the name Mark Reyes. Bernal used the “Reyes” name in connection with his wine consulting business, which he established upon moving to Nebraska from Chicago. The USMS located a rental address for Bernal and his spouse in Omaha and subsequently observed him at the residence at that address on multiple occasions throughout the month of June 2022. Bernal and his spouse established utilities at the residence on January 5, 2022. Bernal did not register or attempt to register, nor did he update his sex offender registration pursuant to the requirements of SORNA between approximately April 1, 2021, and September 26, 2022, when he was arrested.
This case was investigated by the United States Marshals Service.
Social Media Influencer Sentenced to Five Years in Prison for $1.5 Million COVID-19 Relief Fraud SchemeRead the Press Release
BOSTON – A Miami woman was sentenced today in federal court in Boston for fraudulently obtaining over $1 million in pandemic-related loans using the stolen identities of more than 10 individuals and then using those funds for personal expenses, including chartering a private jet and renting a luxury apartment.
Danielle Miller, 32, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to five years in prison and three years of supervised release. Miller was also ordered to pay restitution in an amount that will be determined at a later date. In March 2023, Miller pleaded guilty to three counts of wire fraud and two counts of aggravated identity theft.
“Ms. Miller isn’t an influencer, she is a convicted felon. She stole the identities of innocent people to steal over $1.2 million in pandemic-relief loans that should have gone to people in need. In a quest for fleeting social media stardom, Ms. Miller relied on fraud to fund a lavish lifestyle of private jets, luxury apartments and other accoutrements of wealth. Today's sentencing should make it crystal clear that curating a high-society social media presence on the backs of hardworking taxpayers is a path to prison, not fleeting fame,” said Acting United States Attorney Joshua S. Levy.
“Danielle Miller stole critical financial support from the hands of people who needed it during one of the most turbulent economic periods in recent history. While other Americans worried about how to keep food on the table, Miller spent her ill-gotten gains on hotels and luxury goods, heartlessly flaunting this fraudulent lifestyle on social media. Today’s sentence is the result of a collaborative team of investigators committed to uncovering fraud and ensuring taxpayer dollars are going where they should and not into the hands of scammers like Miller,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England.
“Danielle Miller engaged in a scheme targeted at the Massachusetts Department of Unemployment Assistance, as well as five other state workforce agencies, to fraudulently obtain pandemic-related unemployment benefits in the names of identity theft victims. Miller also utilized stolen identities to fraudulently apply for Economic Injury Disaster Loans. Miller’s schemes sought to secure more than $1 million in stolen benefits set aside by the federal government to assist Americans struggling with the economic effects of the COVID-19 pandemic. We will continue to work with our law enforcement partners to safeguard these critical benefit programs for those who need it,” said Jonathan Mellone, Special Agent-in-Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General.
From in or around July 2020 through May 2021, Miller devised and executed a scheme to fraudulently obtain pandemic-related relief loans funded by the federal government – including Economic Injury Disaster Loan funds through the U.S. Small Business Administration (SBA) as well as Pandemic Unemployment Assistance and related unemployment benefits. To execute the scheme, Miller used the personal identifying information of more than 10 individuals and used fake business names to apply for and receive more than $1 million in government benefits.
Additionally, Miller possessed counterfeit driver’s licenses in the victims’ names but bearing Miller’s photograph. In August 2020, Miller used a counterfeit driver’s license in the name of a Massachusetts victim to arrange a Gulfstream private jet charter flight from Florida to California, where she stayed at a luxury hotel under the same victim’s name. In a separate instance, Miller used the identity of another victim to rent a luxury apartment in Florida.
Miller maintained an active social media presence via her Instagram account, which had more than 34,000 followers. There, Miller posted her extravagant use of the fraud proceeds and stolen identities, publicizing her purchasing of luxury goods and renting of luxury accommodations. Posts to this account included a post showing Miller at luxury hotels in California where transactions were made using the bank account in one of the victim’s names.
Acting U.S. Attorney Levy; HSI SAC Krol; DOL-OIG SAC Mellone; Amaleka McCall-Brathwaite, Special Agent in Charge of the Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region; and Abington (Mass.) Police Chief David DelPapa made the announcement today. Valuable assistance was provided by Homeland Security Investigations in Miami and the Massachusetts State Police. Assistant U.S. Attorneys William F. Abely, Chief of the Criminal Division and Benjamin A. Saltzman of the Securities Financial & Cyber Fraud Unit prosecuted the case.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
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.
Seven Individuals Charged with Distribution of Fentanyl and Methamphetamine on Tohono O'odham NationRead the Press Release
TUCSON, Ariz. – Nina Buendia, Patricia Garcia, Kayloni Guerra, Ernesto Martin, Michael Cory Norris, and Mount Vernon Robinson of Sells, Arizona, and Travis Lopez of Covered Wells, Arizona, were indicted last week on charges of Distribution of Fentanyl or Methamphetamine. The indictments mark the conclusion of a community impact initiative on the Tohono O’odham Nation that started in August of 2022 and involved enforcement action on 27 methamphetamine or fentanyl transactions from the Sells and Covered Wells, Arizona communities.
In addition to interdicting hand-to-hand drug sales, agents executed multiple residential search warrants and recovered an additional 157 grams of methamphetamine, 695 grams of fentanyl, two handguns, three rifle magazines, 264 rounds of ammunition, and U.S. currency. Lopez, who is a prohibited possessor, was also indicted on Felon in Possession of Firearm charges.
Homeland Security Investigations Sells and the Bureau of Indian Affairs conducted the investigation in these cases, with assistance from the Federal Bureau of Investigation and the Tohono O’odham Police Department. The United States Attorney’s Office, District of Arizona, Tucson, will be handling the prosecution.
CASE NUMBERS: CR-23-1308-TUC-RCC
CR-23-1309-TUC-SHR
CR-23-1310-TUC-RCC
CR-23-1312-TUC-JAS
CR-23-1313-TUC-RCC
CR-23-1311-TUC-JAS
RELEASE NUMBER: 2023-134_Tohono O’odham Community Impact Initiative# # #
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.San Antonio Drug Dealer Sentenced to 30 Years in Prison for Fatal Fentanyl DistributionRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced in a federal court in San Antonio today to 360 months in prison and 10 years of supervised release for possession with intent to distribute fentanyl resulting in the death of 20-year-old Isabella Render.
According to court documents, Patrick James Hall, 29, met Render on Oct. 28, 2020, in a San Antonio hotel room located off I-10, where he had been selling the drug in the form of small round blue pills disguised as oxycodone. Render had been unconscious in Hall’s hotel room for an extended period when Hall returned a missed call to Render’s friend. Hall notified the friend that she needed to pick up Render from the hotel because she had overdosed. He then left the location without calling for emergency services. Render’s friend, however, did alert emergency services who pronounced Render dead upon their arrival. She had been deceased for some time. A toxicology report showed that Render had an amount of fentanyl in her blood that exceeded 24 times a fatal dose.
Hall was arrested on Nov. 19, 2020 on State charges. Text messages sent from his phone confirmed that he had been selling the pills to multiple individuals at the time of the Render’s death, and that he himself had overdosed on the pills earlier in the month. Hall was subsequently indicted by a federal grand jury on four counts related to possession of fentanyl with intent to distribute.
“Fentanyl has proven to be a very deadly drug that is being used to poison our communities and this sentence reinforces our position that those who traffic it will be held accountable for the harm they cause,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My hope is that families of fentanyl victims—in this case, Isabella’s family—can see these sentences as progress and that they can find some measure of relief through our justice system. I also thank our law enforcement partners at the Drug Enforcement Administration and the San Antonio Police Department for their successful investigative work in this case.”
“Today's sentencing of Patrick Hall represents the culmination of hard work by our local law enforcement partners and federal prosecutors," said Special Agent in Charge Daniel C. Comeaux for the DEA’s Houston Division. “I want to provide my most sincere condolences to the Bove family. While we realize nothing eliminates the pain and grief they have endured, we hope the knowledge that Hall is being held accountable for the death of their daughter, Isabella Render, and his inability to harm others will bring them some comfort.”
The DEA and SAPD investigated the case.
Assistant U.S. Attorney Amy Hail prosecuted the case.
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Russian Businessman Sentenced to Nine Years in Prison in $93 Million Hack-to-Trade ConspiracyRead the Press Release
BOSTON – A Russian businessman was sentenced today in federal court in Boston for his involvement in an elaborate hack-to-trade scheme that netted approximately $93 million through securities trades based on confidential corporate information stolen from U.S. computer networks.
Vladislav Klyushin, a/k/a “Vladislav Kliushin,” 42, of Moscow, Russia, was sentenced by U.S. District Court Judge Patti B. Saris to nine years in prison. Klyushin was also ordered to forfeit $34,065,419 and pay restitution in an amount that will be determined at a later date. In February 2023, Klyushin was convicted by a federal jury of securities fraud, wire fraud, gaining unauthorized access to computers, and conspiracy to commit those crimes. Klyushin was arrested in Sion, Switzerland in March 2021 and extradited to the United States in December 2021.
Klyushin was charged along with two Russian co-conspirators: Ivan Ermakov and Nikolai Rumiantcev. Two others, Mikhail Vladimirovich Irzak and Igor Sergeevich Sladkov, were charged in a separate indictment. All four co-conspirators remain at large. In July 2018, a federal grand jury in Washington, D.C. indicted Ermakov in connection with his alleged role in a scheme to interfere with the 2016 United States elections by way of computer hacking. In October 2018, Ermakov was also charged by a federal grand jury in Pittsburgh in connection with his alleged role in hacking and related disinformation operations targeting international anti-doping agencies, sporting federations and anti-doping officials.
“Mr. Klyushin hacked into American computer networks to obtain confidential corporate information that he used to make money illegally in the American stock market,” said Acting United States Attorney Joshua S. Levy. “He thought he could get away with his crimes by perpetrating them from a foreign base, hidden behind layers of fake domain names, virtual private networks, and computer servers rented under pseudonyms and paid for with cryptocurrency. He found out otherwise, and will now spend nearly a decade of his life in a U.S. prison. This case should send a message to criminals around the world that their location does not provide anonymity and the reach of American law enforcement is long. Anyone who defrauds American companies, markets or investors, will be found and prosecuted, regardless of where they hide, or how long it takes.”.
“Russian businessman Vladislav Klyushin is a sophisticated hacker who engineered a global get-rich-quick scheme that defrauded unsuspecting American businesses of approximately $93 million. He hacked into U.S. computer networks, stole non-public information, and illegally traded on it,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “This case demonstrates how cybercrime knows no boundaries and justice will not stop at international borders. The FBI will not stand idly by and allow criminals like him to launch intrusive cyber-attacks to meddle in our financial markets. We are committed to working with our public and private sector partners to stop computer intrusions and prevent further harm.”
Klyushin, Ermakov and Rumiantcev worked at M-13, a Moscow-based information technology company that Klyushin owned. M-13 offered penetration testing and “Advanced Persistent Threat (APT) emulation,” – both services that seek exploitable vulnerabilities in a computer system via hacking techniques, purportedly for defensive purposes. M-13’s website indicated that the company’s “IT solutions” were used by “the Administration of the President of the Russian Federation, the Government of the Russian Federation, federal ministries and departments, regional state executive bodies, commercial companies and public organizations.” In addition to these services, Klyushin invested the money of several investors in his hack-to-trade scheme, and took a cut of up to 60 percent of their profits.
Trial evidence showed that, between at least in or about January 2018 and September 2020, Klyushin, and allegedly Ermakov, Irzak, Sladkov and Rumiantcev, conspired to use stolen earnings information to trade in the securities of companies that are publicly traded on U.S. national securities exchanges, including the NASDAQ and the NYSE, in advance of public earnings announcements. Using the same malicious hacking techniques M-13 advertised to customers, Klyushin and, allegedly his co-conspirators, obtained inside information by hacking into the computer networks of two U.S.-based filing agents that publicly-traded companies used to make quarterly and annual filings through the U.S. Securities and Exchange Commission (SEC). Specifically, Klyushin, and allegedly his co-conspirators, deployed malicious infrastructure capable of harvesting and stealing employees’ login information and used proxy (or intermediary) computer networks outside of Russia to conceal the origins of their activities. With this access, Klyushin, and allegedly his co-conspirators, viewed and downloaded material non-public information, such as quarterly and annual earnings reports that had not yet been filed with the SEC or disclosed to the general public, for hundreds of companies – including Capstead Mortgage Corp., Tesla, Inc., SS&C Technologies, Roku and Snap, Inc. Many of the illegally obtained earnings reports were downloaded through a computer server located in downtown Boston.
Armed with this information before it was disclosed to the public, Klyushin, and allegedly his co-conspirators, knew ahead of time, among other things, whether a company’s financial performance would meet, exceed or fall short of market expectations – and thus whether its share price would likely rise or fall following the public earnings announcement. Klyushin then traded based on that stolen information in brokerage accounts held in his own name and in the names of others. Klyushin, and allegedly his co-conspirators, also distributed their trading across accounts they opened at banks and brokerages in several countries, including Cyprus, Denmark, Portugal, Russia and the United States, and misled brokerage firms about the nature of their trading activities.
Evidence presented at trial demonstrated that the times in which the filing agents were hacked corresponded with the times in which Klyushin, and allegedly his co-conspirators, made profitable trades. Additionally, of the more than 2,000 earnings events around which Klyushin and allegedly his co-conspirators traded between January 2018 and September 2020, more than 97 percent were filed with the SEC by the victim filing agents. Testimony at trial indicated that the odds of this trading pattern occurring in the absence of a relationship between the trading and the identity of the filing agent was less than one in a trillion.
In total, Klyushin and allegedly his co-conspirators earned close to $100 million in earnings trading from roughly $9 million in investments using inside information, even as they lost close to $10 million in non-earnings trading – representing a return of more than 900 percent during a period in which the broader stock market returned just over 25 percent.
Of that amount, Klyushin individually netted more than $34 million, including nearly $22.5 million on his personal trading and trading for his company, in addition to more than $11.5 million on the money he invested for others. Further, Klyushin’s sophisticated cyber attack cost its two victims more than $8 million dollars.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. The SEC, the Swiss Federal Office of Justice, the Valais and Zurich Cantonal Police authorities and the victim filing agents provided valuable assistance to the investigation. The Justice Department’s Office of International Affairs provided significant assistance in securing Klyushin’s arrest and extradition from Switzerland. Stephen E. Frank and Seth B. Kosto, Chief and Deputy Chief, respectively, of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Repeat offender who triggered neighborhood lock-down pleads guilty to drug and gun crimesRead the Press Release
Seattle – A 42-year-old Seattle man pleaded guilty today in U.S. District Court in Seattle to possession of controlled substances with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Tessa M. Gorman. Pedro Fernandez Kent will be sentenced by U.S. District Judge Ricardo S. Martinez on December 8. 2023. Prosecutors have agreed to recommend no more than ten years in prison, but Judge Martinez is free to impose any sentence allowed by law.
According to records filed in the case, on January 15, 2023, Seattle Police were responding to a domestic violence report in North Seattle when they spotted the distinctive car driven by the suspect, Pedro Kent. Kent attempted to flee from police crashing his car into two curbs, rupturing the tires. Kent abandoned the car and ran into the yards of neighboring homes. Video from area cameras show Kent with a handgun in his hand as he ran into a back yard. Police converged on the area, alerting residents to stay in their homes with the doors locked. One couple called police reporting that the defendant appeared to be hiding in their backyard. A K-9 officer helped take Kent into custody.
In addition to the gun Kent carried when he ran from the car, police located a carbine rifle in the car as well as distribution amounts of fentanyl, cocaine, heroin, and methamphetamine. Kent also had a hatchet and a dagger in the car as well as scales and plastic baggies for drug distribution.
Kent was prohibited from possessing firearms due to previous King County convictions for burglary, theft, assault, and trafficking in stolen property.
The case was investigated by the Seattle Police Department with assistance from Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
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.
Reedsburg Attorney Sentenced to 45 Months for Embezzlement SchemeRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Kristin Lein, 61, Reedsburg, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 45 months in prison, followed by three years of supervised release, for wire fraud, money laundering, and filing a false tax return. Lein pleaded guilty to these charges on June 14, 2023.
The government’s investigation revealed that Lein, a licensed attorney in Wisconsin, engaged in a fraud scheme in which she stole $1,643,818 from a client’s trust accounts. In June 2019, Lein began transferring money from several accounts belonging to the client’s trust to her own personal bank account. During a telephone call on February 2, 2022, Lein and the beneficiary of the trust discussed financial matters. During the telephone call, Lein told the beneficiary that the trust balance was over $1,800,000. However, Lein knew that the actual amount of money held in the trust was significantly less due to her embezzlement of funds. Lein continued to embezzle money from the trust accounts until the funds were depleted in September 2022.
The investigation revealed that Lein used the embezzled funds to pay personal expenses, including improvements to her residence in Reedsburg and to purchase multiple vehicles, including a 2019 F-250 pickup truck, a 2017 Toyota Tacoma pickup truck, and a 2020 Mahinda tractor. Lein also admitted that she failed to report the income she obtained from the embezzlement on her 2019 personal tax return.
At the sentencing hearing, Judge Conley stated that it was hard to overstate the level of betrayal the defendant’s client endured as a result of the embezzlement scheme. Judge Conley noted that Lein violated her ethical obligations as an attorney in “stunning ways.” Judge Conley stated that the evidence showed that the defendant had lost her moral compass and the result was an “unspeakable loss” for the client.
The charges against Lein were a result of an investigation conducted by IRS Criminal Investigation. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Readout of Russian Elites, Proxies, and Oligarchs (REPO) Task Force Deputies MeetingRead the Press Release
Principal Associate Deputy Attorney General Marshall Miller and Deputy Secretary of the Treasury Wally Adeyemo convened deputies of the REPO Task Force to enhance sanctions enforcement efforts and bolster ongoing oligarch asset forfeiture initiatives.
Participants from Australia, Canada, the European Commission, France, Germany, Japan, Italy, the United Kingdom, and the United States discussed ongoing sanctions enforcement initiatives and noted the need to counter Russian elites and their proxy networks that continue to enable and profit from Putin’s war economy. Deputies emphasized that those profiting from Russia’s war should not be able to live lives of luxury, and that task force members will continue to identify and disrupt proxy networks that attempt to use global financial centers to store and access wealth. Deputies also discussed ongoing efforts to counter sanctions evasion and disrupt Russian efforts to acquire critical dual-use technologies that fuel the Russian war machine.
Following the G7 leaders’ commitment in May, the REPO Task Force has completed its initial effort to map and account for Russian sovereign assets that are immobilized and held in REPO member jurisdictions. REPO members committed to taking steps to fully map these holdings and ensure that, consistent with their respective legal systems, Russia’s sovereign assets held in REPO member jurisdictions will remain immobilized until Russia pays for the damage it has caused to Ukraine. The total value of assets in this mapping exercise is estimated at around $280 billion, the majority of which is held in the European Union. Given the complexity of this exercise, task force members expect to refine the asset mapping through the end of the year, leveraging new reporting requirements and enhanced information sharing arrangements.
Quincy Man Arrested for $1 Million Counterfeit Check SchemeRead the Press Release
BOSTON – A Quincy man was arrested and charged today in connection with a bank fraud scheme involving approximately 114 counterfeit checks – totaling more than $1 million.
Hui Zhang, 41, was charged with one count of bank fraud. Zhang was arrested this morning and will appear in federal court in Worcester at 3 p.m. today.
From in or around June 2020 through at least May 2022, Zhang allegedly opened fraudulent bank accounts under false identities, deposited over $1 million worth of approximately 114 counterfeit checks and then subsequently withdrew hundreds of thousands of dollars in cash from these accounts via ATMs. Zhang was allegedly identified in part by a tattoo on his left hand that was visible in surveillance footage of the ATM withdrawals. Zhang allegedly used the same IP address that was used to open one of the fraudulent bank accounts and to deposit counterfeit checks.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million, or twice the gross proceeds. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney William F. Abely, Chief of the Criminal Division is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Prince George’s County Felon Sentenced to 11 Years in Federal Prison for Drug Conspiracy and Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Toumani Thomas, age 46, of Accokeek, Maryland, to 11 years in federal prison, followed by five years of supervised release, for being a felon in possession of a firearm, a drug distribution conspiracy, and for violating his supervised release for a previous conviction for an attempted armed commercial robbery. Judge Chasanow ordered that Thomas must forfeit firearms and ammunition seized during the investigation, $18,004 in cash that was proceeds of drug trafficking, and the Mercedes-Benz AMG GT, the Yamaha R1 motorcycle, and the Audi S8 that Thomas used to facilitate drug trafficking and/or obtained with proceeds of such activity.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration (“DEA”) - Washington Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his guilty plea, in October 2022, DEA agents received a tip that Thomas was involved in drug trafficking. Investigation connected Thomas to a storage unit in Temple Hills, Maryland. A subsequent search warrant executed at the storage unit recovered a duffel bag containing eleven shrink-wrapped bricks of cocaine with a total weight of 12.8 kilograms and a single plastic cup. Surveillance footage and storage facility access records obtained after the search showed Thomas accessing the unit several times since it was rented by another individual on October 6, 2022. Video showed that Thomas had traveled to the facility using his Yamaha R1 motorcycle, his Mercedes Benz AMG GT, and his Audi S8 at different times in furtherance of Thomas’s drug trafficking. The day after the seizure of the cocaine, Thomas arrived at the facility with a large, empty plastic tub and attempted to retrieve some or all of the cocaine from the storage unit when he discovered it had been seized.
After officers discovered the 12.8 kilograms of cocaine, they learned that Thomas had an active account at another storage facility in Brentwood, Maryland. On December 6, 2022, officers executed a search warrant at that storage unit and found items belonging to Thomas. From a backpack located inside the unit, officers recovered a 7.62x39mm semiautomatic rifle; a 100 round high-capacity drum-style magazine containing 97 rounds of 7.62 caliber ammunition; a 30-round high-capacity magazine containing 20 rounds of 7.62 caliber ammunition; and a pistol magazine containing 5 rounds of ammunition. The 7.62 mm firearm had been reported stolen in Virginia in June 2022. Thomas admitted that the firearm, magazines and ammunition recovered from the Brentwood storage unit were used, or intended to be used, to facilitate his drug trafficking. Thomas also admitted that he knew he was prohibited from possessing firearms or ammunition that as a result of his previous federal conviction.
A search warrant was also executed at Thomas’s residence and agents recovered a money counting machine, an empty handgun container, a large roll of shrink-wrap plastic, rubber bands, and a large container of automotive grease, which is frequently used to attempt to mask drug scents from detection dogs. The Mercedes Benz AMG GT and the Yamaha R1 motorcycle were also found in the home’s garage. Law enforcement seized $18,004 in cash at Thomas’s arrest on December 16, 2022.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the DEA and the Prince George’s County Police Department for their work in the investigation and thanked the Baltimore County Police Department for its assistance. Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake and Special Assistant U.S. Attorney Dawn M. Ellison, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Philadelphia Man Sentenced to 15 Months in Prison for Role in Healthcare Fraud Conspiracy Targeting New Jersey Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A Philadelphia man was sentenced today to 15 months in prison for his role in defrauding New Jersey state health benefits programs and other insurers out of $2.69 million by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Robert Bessey, 49, of Philadelphia, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with conspiracy to commit health care fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From January 2015 through April 2016, Bessey, a recruiter in the conspiracy, and others persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy. The conspirators learned that a pharmacy benefits administrator would reimburse pharmacies thousands of dollars for a one-month supply of certain prescription compounded medications, including pain, scar, antifungal, and libido creams, as well as over $10,000 per month for certain vitamin combinations.
The pharmacy benefits administrator managed the prescription drug benefit plan for some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers. The conspirators recruited public employees and other individuals covered by the pharmacy benefits administrator to fraudulently obtain compounded medications from the compounding pharmacy without any evaluation by a medical professional that they were medically necessary.
In addition to the prison term, Judge Kugler sentenced Bessey to two years of supervised release. Bessey was ordered to forfeit $485,540 and pay restitution of $2.69 million.
Attorney for the United States Khanna credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the sentencing.
The government is represented by R. David Walk Jr., Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Daniel Friedman of the Criminal Division in Camden.
Peoria, Illinois, Felon Sentenced to 65 Months in Prison for Possession of a FirearmRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Dazmine M. Erving, 32, was sentenced on September 6, 2023, to a total of 65 months in federal prison for possessing a firearm as a felon.
In a prior written filing, the government stated that on September 14, 2022, a Peoria Police officer approached an SUV that was backed into a parking spot at River Front Park after the park had closed. The officer discovered Erving in the backseat of the vehicle with a juvenile female later determined to have an outstanding warrant for her arrest. The officer also smelled the odor of burnt cannabis coming from the SUV during the encounter. During a records check, the officer learned that Erving was on federal supervised release following a conviction for possessing a firearm as a felon. After Erving and the female exited the SUV, the officer located a firearm on the floorboard where Erving had been seated. The gun, a semiautomatic pistol, was loaded with a round of ammunition in the chamber and eight rounds in the magazine. The firearm had previously been reported stolen.
Erving was indicted in September 2022 and entered a guilty plea in May of 2023. Erving also pleaded guilty to a petition to revoke supervised release in his prior case alleging that possession of the pistol was a violation of the terms of his supervised release.
At sentencing, U.S. District Judge James E. Shadid imposed a term of 41 months’ imprisonment for Erving’s new gun case, to run consecutively to a term of 24 months’ imprisonment for violating the terms of his supervised release. The new sentence and supervised release sentence in combination require Erving to serve 65 months’ imprisonment. Erving’s term of imprisonment on the new case will be followed by a three-year term of supervised release. He has remained in the custody of the U.S. Marshals Service since his arrest.
The statutory penalties for possessing a firearm as a felon are up to 15 years; imprisonment, a possible $250,000 fine, and up to three years of supervised release.
The U.S. Department of Justice; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Peoria Police Department investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Erving 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.
Onondaga County Man Sentenced to 68 Months for Possession of a Firearm in Furtherance of Drug Trafficking and Possession of Crack Cocaine for DistributionRead the Press Release
SYRACUSE, NEW YORK – Ernest B. Shaw, Jr., age 26, of Nedrow, New York, was sentenced today to serve 68 months in federal prison for his convictions for possession with intent to distribute cocaine base and possession of a firearm in connection with a drug trafficking crime, announced United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his previous guilty plea, Shaw admitted that on September 25, 2019, he possessed 14 grams of cocaine base (crack cocaine) for distribution and a loaded Glock .40 caliber handgun at his residence in Nedrow, New York. DEA Special Agents assisted by other law enforcement agencies executed a federal search warrant and seized the cocaine base and the loaded handgun from the defendant’s bedroom, along with digital scales and plastic bags. Federal Agents searched the residence as part of a long-term drug investigation that involved the defendant’s father, Ernest B. Shaw, Sr, and others.[1]
This case was investigated by the United States Drug Enforcement Administration (DEA) Syracuse Resident Office, which includes Task Force Officers from the City of Auburn Police Department, the City of Syracuse Police Department, the New York State Police, and the Oneida County Sheriff’s Office. Other Agencies that assisted in this investigation included the New York State Police, the Onondaga County Sheriff’s Office, the Onondaga County District Attorney’s Office, and the U.S. Department of Homeland Security-Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorney Richard Southwick and Assistant U.S. Attorney Thomas Sutcliffe.
[1] Ernest B. Shaw Sr. was convicted after trial in federal court in September 2021, and is serving a 15-year sentence in federal prison for his conviction for participating in a federal drug conspiracy.
Omaha Man Sentenced for Possessing Child PornographyRead the Press Release
Acting United States Attorney Susan Lehr announced that Derric Shy, 41, of Omaha, Nebraska, was sentenced today in federal court in Omaha for distribution and receipt of child pornography. United States District Judge Brian C. Buescher sentenced Shy to 121 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Shy will serve 5 years of supervised release.
Homeland Security Investigations (“HSI”) agents in Nebraska began investigating a chat application after receiving a case referral from an HSI agent in Detroit, Michigan, who was conducting undercover chats. The undercover agent observed users upload numerous videos of child pornography to a chat group, ‘#daugh.’ On January 10, 2022, the agent specifically observed user “kikaroo” post three videos of child pornography. HSI Detroit sent a subpoena to the chat application and learned that “kikaroo” was associated with Derric Shy. An IP address associated with the user also resolved to Shy. HSI forwarded the chats, videos, and user information to HSI Nebraska.
On April 7, 2022, agents executed a search warrant at Shy’s residence. Agents interviewed Shy, who immediately admitted to knowing why they were there, stating it was because he was looking at stuff on the chat application at issue. Shy claimed the username “kikaroo” and admitted to viewing and sharing child pornography. Shy told agents they would find child pornography on his devices and provided the passcodes.
Forensic examinations of Shy’s devices revealed at least nine videos of child pornography on Shy’s cell phone. Shy’s computer also showed artifacts related to the case investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations.
Omaha Man Sentenced for Distributing FentanylRead the Press Release
Acting United States Attorney Susan Lehr announced that Jerrell Jackson, 34, of Omaha, Nebraska, was sentenced on September 6, 2023, in federal court in Omaha for distributing fentanyl. United States District Judge Brian C. Buescher sentenced Jackson to 54 months in prison. There is no parole in the federal system. After Jackson’s release from prison, he will begin a three-year term of supervised release.
On November 9, 2020, in Omaha, Jackson knowingly sold pills containing fentanyl to a witness cooperating with law enforcement. Jackson sold the cooperator approximately 50 fentanyl pills in exchange for $1,000. The 54-month sentence took into account that at the time Jackson sold the fentanyl, he was on federal supervised release following a conviction for being a felon in possession of a firearm.
This case was investigated by the Federal Bureau of Investigation, the Omaha Police Department, and the Bellevue Police Department.
New York Woman Arrested for Trafficking Methamphetamine, Heroin, and "Tranq"Read the Press Release
CONCORD – A Bronx, New York, woman has been charged in connection with trafficking methamphetamine and fentanyl combined with xylazine from New York to New Hampshire, U.S. Attorney Jane E. Young announces.
Katherine Sanchez Lugo, 33, was arrested today in Nashua on a criminal complaint of possessing with intent to distribute and distributing controlled substances. Sanchez Lugo will make an initial appearance in federal court in Concord on September 7, 2023.
According to the charging documents, Sanchez Lugo trafficked controlled substances on three occasions from New York to New Hampshire. Sanchez Lugo distributed a 200-gram mixture of fentanyl, heroin and xylazine, and 55-grams of methamphetamine on June 14, 2023. The defendant also trafficked more than half of a kilogram of substances allegedly containing fentanyl on July 12th, 2023 and August 10th, 2023.
Xylazine, also known as “Tranq,” is a powerful non-opiate sedative that the U.S. Food and Drug Administration (FDA) has approved for veterinary use only. Because xylazine is not an opioid, naloxone (Narcan) does not reverse its effects. Xylazine and fentanyl drug mixtures place users at a higher risk of suffering a fatal drug poisoning. People who inject drug mixtures containing xylazine also can develop severe wounds, including necrosis—the rotting of human tissue—that may lead to amputation. The combination is referred to on the street as the “zombie drug.”
The U.S. Drug Enforcement Administration (DEA) recently issued a public safety alert warning the American public of a sharp increase in the trafficking of fentanyl mixed with xylazine and the drug’s deadly effects. The FDA also published an alert to health care providers about the risks to patients exposed to xylazine in illicit drugs.
The charge of possessing with intent to distribute and distributing controlled substances provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
DEA led the investigation. Valuable assistance was provided by the Nashua Police Department. Assistant U.S. Attorney Cesar A. Vega is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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New Orleans Man Pleads Guilty to Heroin Trafficking ChargeRead the Press Release
NEW ORLEANS, LOUISIANA – JOHN CRAWFORD, age 39, a New Orleans resident, pleaded guilty on September 6, 2023, before U.S. District Judge Mary Ann Vial Lemmon to a superseding bill of information charging him with conspiracy to distribute heroin, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, the FBI New Orleans Gang Task Force and the New Orleans Police Department started investigating CRAWFORD for his involvement in a drug distribution operation in September 2020. The investigation involved numerous controlled purchases of narcotics from CRAWFORD and DONALD MYLES, a/k/a “D-Ray.” The investigation revealed that CRAWFORD conspired with MYLES, KEVIN JOHNSON, CHRISTOPHER JOHNSON, ERNEST GREEN, and others known and unknown, to distribute heroin and cocaine.
CRAWFORD faces up to twenty years imprisonment, a fine of up to $1,000,000, at least three years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
The U.S. Federal Bureau of Investigation New Orleans Gang Task Force, with the assistance of the New Orleans Police Department, the Jefferson Parish Sheriff’s Office, and the Gretna Major Crimes Task Force, led the investigation. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
New Orleans Man Pleads Guilty to Drug and Gun OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – EMANUEL ROSS, age 24, a resident of New Orleans, Louisiana, pled guilty on September 6, 2023 before United States District Court Judge Ivan L.R. Lemelle to Possession with Intent to Distribute Cocaine and Fentanyl in violation of Title 21 U.S.C. Sections 841(a)(1) and (b)(1)(C) and Possession of a Machinegun in violation of Title 18, United States Code, Section 922(o), announced U.S. Attorney Duane A. Evans.
The Possession with Intent to Distribute Cocaine and Fentanyl charge carries a term of imprisonment of not more than 20 years, a fine of up to $1,000,000, and at least 3 years supervised release. The Possession of a Machinegun charge carries a maximum term of imprisonment of 10 years, up to a $250,000 fine, and up to three years of supervised release. Each offense also carries a mandatory special assessment fee of $100.00.
Judge Lemelle ordered a pre-sentence report and scheduled sentencing for December 13, 2023. ROSS will remain detained without bond.
Court documents reveal that the Federal Bureau of Investigation Violent Crime Task Force and the New Orleans Police Department began an investigation of ROSS in mid-2022 and discovered an online video of him firing a pistol that had been converted into a machine gun through the use of a device known as a “switch.” A search warrant of ROSS’s home was executed on January 27, 2023, and law enforcement officials found cocaine, fentanyl and various weapons including the machine gun seen on the online video.
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.
The case was investigated by the Federal Bureau of Investigation Violent Crimes Task Force, and the New Orleans Police Department. Assistant United States Attorney Mark A. Miller of the Violent Crime Unit is assigned the prosecution.
Multiple Foreign Nationals Charged in Connection with Trickbot Malware and Conti Ransomware ConspiraciesRead the Press Release
WASHINGTON - Three indictments in three different federal jurisdictions have been unsealed charging multiple Russian cybercrime actors involved in the Trickbot malware and Conti ransomware schemes.
According to court documents and public reporting, Trickbot, which was taken down in 2022, was a suite of malware tools designed to steal money and facilitate the installation of ransomware. Hospitals, schools, and businesses were among the millions of Trickbot victims who suffered tens of millions of dollars in losses. While active, Trickbot malware, which acted as an initial intrusion vector into victim computer systems, was used to support various ransomware variants, including Conti. Conti was a ransomware variant used to attack more than 900 victims worldwide, including victims in approximately 47 states, the District of Columbia, Puerto Rico, and approximately 31 foreign countries. According to the FBI, in 2021, Conti ransomware was used to attack more critical infrastructure victims than any other ransomware variant.
“The Justice Department has taken action against individuals we allege developed and deployed a dangerous malware scheme used in cyberattacks on American school districts, local governments, and financial institutions,” said Attorney General Merrick B. Garland. “Separately, we have also taken action against individuals we allege are behind one of the most prolific ransomware variants used in cyberattacks across the United States, including attacks on local police departments and emergency medical services. These actions should serve as a warning to cybercriminals who target America’s critical infrastructure that they cannot hide from the United States Department of Justice.”
“Today’s announcement shows our ongoing commitment to bringing the most heinous cyber criminals to justice – those who have devoted themselves to inflicting harm on the American public, our hospitals, schools, and businesses,” said FBI Director Christopher Wray. “Cyber criminals know that we will use every lawful tool at our disposal to identify them, tirelessly pursue them, and disrupt their criminal activity. We, alongside our federal and international partners, will continue to impose costs through joint operations no matter where these criminals may attempt to hide.”
“The defendants charged in these three indictments across three different jurisdictions allegedly used their cyber knowledge and capabilities to victimize people and businesses around the world without regard for the damage they caused,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “These indictments should serve as a reminder that no matter a cybercriminal’s location, we will identify and pursue them by doing everything in our power to ensure they face the consequences of their actions.”
“Conti ransomware was used to exploit our financial systems and target hundreds of innocent victims,” said Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division. “The Secret Service will continue to work with our local, state, and federal law enforcement partners to investigate cybercriminals and bring offenders to justice.”
As detailed below, a federal grand jury in the Northern District of Ohio returned an indictment charging Maksim Galochkin, aka Bentley; Maksim Rudenskiy, aka Buza; Mikhail Mikhailovich Tsarev, aka Mango; Andrey Yuryevich Zhuykov, aka Defender; Dmitry Putilin, aka Grad and Staff; Sergey Loguntsov, aka Begemot and Zulas; Max Mikhaylov, aka Baget; Valentin Karyagin, aka Globus; and Maksim Khaliullin, aka Maxfax, Maxhax, and Kagas, all Russian nationals, with conspiring to use the Trickbot malware to steal money and personal and confidential information from unsuspecting victims, including businesses and financial institutions located in the United States and around the world, beginning in November 2015.
A federal grand jury in the Middle District of Tennessee returned an indictment charging Galochkin, Rudenskiy, Tsarev, and Zhuykov with conspiring to use Conti ransomware to attack businesses, nonprofits, and governments in the United States beginning in 2020 and continuing through June 2022.
A federal grand jury in the Southern District of California returned an indictment charging Galochkin in connection with the Conti ransomware attack on Scripps Health on May 1, 2021.
Northern District of Ohio
The indictment returned in the Northern District of Ohio charged all nine defendants for their alleged roles in developing, deploying, managing, and profiting from the malware known as Trickbot. Trickbot was a sophisticated, modular, multi-functional suite of malware tools which (a) infected victims’ computers with malware designed to capture victims’ online banking login credentials; (b) obtained and harvested other personal identification information, including credit cards, emails, passwords, dates of birth, social security numbers, and addresses; (c) infected other computers connected to the victim computer; (d) used the captured login credentials to fraudulently gain unauthorized access to victims’ online bank accounts at financial institutions; (e) stole funds from victims’ bank accounts and laundered those funds using U.S. and foreign beneficiary bank accounts provided and controlled by the defendants and co-conspirators; and (f) installed ransomware on victim computers.
“As alleged in the indictment, Trickbot infected millions of computers worldwide, including those used by hospitals, schools, and businesses,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Today’s announcement demonstrates that these dangerous cybercriminals are not anonymous, as they once believed. The indictments unsealed today show the resolve of the international community to work together to bring cybercriminals to justice. We will continue to use all resources at our disposal to stop cybercrime.”
Each defendant is charged with one count of conspiracy to violate the Computer Fraud and Abuse Act, one count of wire fraud conspiracy, and one count of conspiracy to launder the proceeds of the scheme. The indictment also included an enhancement for falsely registering domains. If convicted, each defendant faces a maximum penalty of 62 years in prison.
Trickbot malware developers Alla Witte and Vladimir Dunaev were previously indicted and apprehended. Witte, a Latvian national pleaded guilty to conspiracy to commit computer fraud and was sentenced to 32 months in June 2023. Dunaev, a Russian national, currently is in custody and pending trial in Cleveland.
Middle District of Tennessee
The Middle District of Tennessee indictment charges that the individuals behind Conti ransomware, including Galochkin, Rudenskiy, Tsarev, and Zhuykov, conspired to use Conti to attack hundreds of victims. Conti’s victims included hospital systems, local governments, and foreign governments. Conti conspirators allegedly extorted funds from victims in the Middle District of Tennessee and encrypted the computer systems of a local sheriff’s department, a local police department, and local emergency medical services, among others. Ransom notes left on Conti victims’ computer systems typically boasted “if you don’t [know Conti] – just ‘google it.’”
“The conspirators who developed and deployed Conti ransomware victimized businesses, governments, and non-profits around the world, including a sheriff’s office and an emergency medical service in Tennessee,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “We will continue to use the full power of this office to ensure that hackers can no longer hide behind their computer screens and to hold them accountable.”
Galochkin was a “crypter” for Conti, modifying the ransomware so that it would not be detected by anti-virus programs; Rudenskiy was a developer who supervised other Conti developers; Tsarev was a manager of other Conti conspirators; and Zhuykov was a systems administrator who managed users of Conti infrastructure, organized and paid for infrastructure and tools, and assisted in problem solving infrastructure-related issues.
Galochkin, Rudenskiy, Tsarev, and Zhuykov are each charged with one count of conspiracy to violate the Computer Fraud and Abuse Act and one count wire fraud conspiracy. If convicted, each defendant faces a maximum penalty of 25 years in prison.
Southern District of California
As alleged in the Southern District of California indictment, Galochkin caused the transmission of the Conti malware and impaired the medical examination, diagnosis, treatment, and care of one or more individuals.
Galochkin is charged with three counts of computer hacking. If convicted, he faces a maximum penalty of 20 years in prison.
“The indictment alleges a callous disregard for the medical care and the personal information of residents of the Southern District of California,” said Acting U.S. Attorney Andrew R. Haden for the Southern District of California. “This office is committed to protecting victims of cybercrime and holding perpetrators accountable.”
The FBI Cleveland Field Office is leading the investigation into Trickbot malware.
Assistant U.S. Attorneys Daniel Riedl and Duncan Brown for the Northern District of Ohio and Senior Counsel Candina Heath of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Trickbot malware case.
The FBI San Diego, Memphis, and El Paso Field Offices, with U.S. Secret Service, are leading the investigation into Conti ransomware. The U.S. Attorney’s Office for the Western District of Texas provided significant assistance.
Assistant U.S. Attorney Taylor J. Phillips for the Middle District of Tennessee, Assistant U.S. Attorneys Jonathan Shapiro and Kareem Salem for the Southern District of California, and Trial Attorney Sonia V. Jimenez and Senior Counsel Ryan K.J. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Conti ransomware cases.
The Justice Department’s National Security Division provided significant assistance in the Conti ransomware and Trickbot malware investigations.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Northern District of Ohio indictment
Middle District of Tennessee indictment
Southern District of California indictment
Multiple Foreign Nationals Charged in Connection with Trickbot Malware and Conti Ransomware ConspiraciesRead the Press Release
Three indictments in three different federal jurisdictions have been unsealed charging multiple Russian cybercrime actors involved in the Trickbot malware and Conti ransomware schemes.
According to court documents and public reporting, Trickbot, which was taken down in 2022, was a suite of malware tools designed to steal money and facilitate the installation of ransomware. Hospitals, schools, and businesses were among the millions of Trickbot victims who suffered tens of millions of dollars in losses. While active, Trickbot malware, which acted as an initial intrusion vector into victim computer systems, was used to support various ransomware variants, including Conti. Conti was a ransomware variant used to attack more than 900 victims worldwide, including victims in approximately 47 states, the District of Columbia, Puerto Rico, and approximately 31 foreign countries. According to the FBI, in 2021, Conti ransomware was used to attack more critical infrastructure victims than any other ransomware variant.
“The Justice Department has taken action against individuals we allege developed and deployed a dangerous malware scheme used in cyberattacks on American school districts, local governments, and financial institutions,” said Attorney General Merrick B. Garland. “Separately, we have also taken action against individuals we allege are behind one of the most prolific ransomware variants used in cyberattacks across the United States, including attacks on local police departments and emergency medical services. These actions should serve as a warning to cybercriminals who target America’s critical infrastructure that they cannot hide from the United States Department of Justice.”
“Today’s announcement shows our ongoing commitment to bringing the most heinous cyber criminals to justice – those who have devoted themselves to inflicting harm on the American public, our hospitals, schools, and businesses,” said FBI Director Christopher Wray. “Cyber criminals know that we will use every lawful tool at our disposal to identify them, tirelessly pursue them, and disrupt their criminal activity. We, alongside our federal and international partners, will continue to impose costs through joint operations no matter where these criminals may attempt to hide.”
“The defendants charged in these three indictments across three different jurisdictions allegedly used their cyber knowledge and capabilities to victimize people and businesses around the world without regard for the damage they caused,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “These indictments should serve as a reminder that no matter a cybercriminal’s location, we will identify and pursue them by doing everything in our power to ensure they face the consequences of their actions.”
“Conti ransomware was used to exploit our financial systems and target hundreds of innocent victims,” said Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division. “The Secret Service will continue to work with our local, state, and federal law enforcement partners to investigate cybercriminals and bring offenders to justice.”
As detailed below, a federal grand jury in the Northern District of Ohio returned an indictment charging Maksim Galochkin, aka Bentley; Maksim Rudenskiy, aka Buza; Mikhail Mikhailovich Tsarev, aka Mango; Andrey Yuryevich Zhuykov, aka Defender; Dmitry Putilin, aka Grad and Staff; Sergey Loguntsov, aka Begemot and Zulas; Max Mikhaylov, aka Baget; Valentin Karyagin, aka Globus; and Maksim Khaliullin, aka Maxfax, Maxhax, and Kagas, all Russian nationals, with conspiring to use the Trickbot malware to steal money and personal and confidential information from unsuspecting victims, including businesses and financial institutions located in the United States and around the world, beginning in November 2015.
A federal grand jury in the Middle District of Tennessee returned an indictment charging Galochkin, Rudenskiy, Tsarev, and Zhuykov with conspiring to use Conti ransomware to attack businesses, nonprofits, and governments in the United States beginning in 2020 and continuing through June 2022.
A federal grand jury in the Southern District of California returned an indictment charging Galochkin in connection with the Conti ransomware attack on Scripps Health on May 1, 2021.
Northern District of Ohio
The indictment returned in the Northern District of Ohio charged all nine defendants for their alleged roles in developing, deploying, managing, and profiting from the malware known as Trickbot. Trickbot was a sophisticated, modular, multi-functional suite of malware tools which (a) infected victims’ computers with malware designed to capture victims’ online banking login credentials; (b) obtained and harvested other personal identification information, including credit cards, emails, passwords, dates of birth, social security numbers, and addresses; (c) infected other computers connected to the victim computer; (d) used the captured login credentials to fraudulently gain unauthorized access to victims’ online bank accounts at financial institutions; (e) stole funds from victims’ bank accounts and laundered those funds using U.S. and foreign beneficiary bank accounts provided and controlled by the defendants and co-conspirators; and (f) installed ransomware on victim computers.
“As alleged in the indictment, Trickbot infected millions of computers worldwide, including those used by hospitals, schools, and businesses,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Today’s announcement demonstrates that these dangerous cybercriminals are not anonymous, as they once believed. The indictments unsealed today show the resolve of the international community to work together to bring cybercriminals to justice. We will continue to use all resources at our disposal to stop cybercrime.”
Each defendant is charged with one count of conspiracy to violate the Computer Fraud and Abuse Act, one count of wire fraud conspiracy, and one count of conspiracy to launder the proceeds of the scheme. The indictment also included an enhancement for falsely registering domains. If convicted, each defendant faces a maximum penalty of 62 years in prison.
Trickbot malware developers Alla Witte and Vladimir Dunaev were previously indicted and apprehended. Witte, a Latvian national pleaded guilty to conspiracy to commit computer fraud and was sentenced to 32 months in June 2023. Dunaev, a Russian national, currently is in custody and pending trial in Cleveland.
Middle District of Tennessee
The Middle District of Tennessee indictment charges that the individuals behind Conti ransomware, including Galochkin, Rudenskiy, Tsarev, and Zhuykov, conspired to use Conti to attack hundreds of victims. Conti’s victims included hospital systems, local governments, and foreign governments. Conti conspirators allegedly extorted funds from victims in the Middle District of Tennessee and encrypted the computer systems of a local sheriff’s department, a local police department, and local emergency medical services, among others. Ransom notes left on Conti victims’ computer systems typically boasted “if you don’t [know Conti] – just ‘google it.’”
“The conspirators who developed and deployed Conti ransomware victimized businesses, governments, and non-profits around the world, including a sheriff’s office and an emergency medical service in Tennessee,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “We will continue to use the full power of this office to ensure that hackers can no longer hide behind their computer screens and to hold them accountable.”
Galochkin was a “crypter” for Conti, modifying the ransomware so that it would not be detected by anti-virus programs; Rudenskiy was a developer who supervised other Conti developers; Tsarev was a manager of other Conti conspirators; and Zhuykov was a systems administrator who managed users of Conti infrastructure, organized and paid for infrastructure and tools, and assisted in problem solving infrastructure-related issues.
Galochkin, Rudenskiy, Tsarev, and Zhuykov are each charged with one count of conspiracy to violate the Computer Fraud and Abuse Act and one count wire fraud conspiracy. If convicted, each defendant faces a maximum penalty of 25 years in prison.
Southern District of California
As alleged in the Southern District of California indictment, Galochkin caused the transmission of the Conti malware and impaired the medical examination, diagnosis, treatment, and care of one or more individuals.
Galochkin is charged with three counts of computer hacking. If convicted, he faces a maximum penalty of 20 years in prison.
“The indictment alleges a callous disregard for the medical care and the personal information of residents of the Southern District of California,” said Acting U.S. Attorney Andrew R. Haden for the Southern District of California. “This office is committed to protecting victims of cybercrime and holding perpetrators accountable.”
The FBI Cleveland Field Office is leading the investigation into Trickbot malware.
Assistant U.S. Attorneys Daniel Riedl and Duncan Brown for the Northern District of Ohio and Senior Counsel Candina Heath of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Trickbot malware case.
The FBI San Diego, Memphis, and El Paso Field Offices, with U.S. Secret Service, are leading the investigation into Conti ransomware. The U.S. Attorney’s Office for the Western District of Texas provided significant assistance.
Assistant U.S. Attorney Taylor J. Phillips for the Middle District of Tennessee, Assistant U.S. Attorneys Jonathan Shapiro and Kareem Salem for the Southern District of California, and Trial Attorney Sonia V. Jimenez and Senior Counsel Ryan K.J. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Conti ransomware cases.
The Justice Department’s National Security Division provided significant assistance in the Conti ransomware and Trickbot malware investigations.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Northern District of Ohio indictment Middle District of Tennessee indictment Southern District of California indictmentMonroe County Man Sentenced to 63 Months’ Imprisonment for Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Terrance Tyson, age 45, of East Stroudsburg, Pennsylvania, was sentenced on September 6, 2023, by U.S. District Court Judge Robert D. Mariani, to 63 months’ imprisonment on the charge of bank robbery.
According to United States Attorney Gerard M. Karam, Tyson previously entered a guilty plea and admitted to committing a robbery of the NBT Bank in East Stroudsburg, on September 24, 2019. Tyson stole approximately $5,226 in the robbery and was apprehended by investigators the following day.
The case was investigated by the Stroud Area Regional Police Department and the FBI Safe Streets Task Force. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Miami Medical Clinic Owner and Pharmacist Convicted for Clinical Trial Fraud SchemeRead the Press Release
A jury in Miami convicted two defendants on Sept. 5 in a scheme involving the falsification and fabrication of clinical trial data.
On Sept. 5, Miguel Angel Montalvo Villa, 53, and Ivette Maria Portela Martinez, 53, both of Miami, were each convicted of one count of conspiracy to commit wire fraud and one count of wire fraud. Montalvo also was convicted of making a false statement to a regulatory investigator with the Food and Drug Administration (FDA).
Previously, on Sept. 13, 2022, Montalvo and Portela were charged in a three-count indictment returned by a federal grand jury. The indictment alleged that, from September 2015 through March 2018, the defendants and a co-conspirator conspired to falsify clinical trial data for profit while working at AMB Research Center Inc. (AMB), a medical clinic located in Miami, Florida.
According to court documents and evidence presented during the trial, Montalvo was co-owner, president and chief executive officer of AMB, and Portela was an employee who, among other things, served as AMB’s pharmacist and data entry specialist. Montalvo and Portela used the names of individuals without their knowledge or permission, and listed those individuals as subjects who who were enrolled and participated in a clinical trial for a drug that was being developed to treat Clostridium difficile-associated diarrhea (CDAD), a moderate to serious form of diarrhea. None of the listed individuals knew that the defendants were using their personal information to falsely portray them as subjects in the CDAD clinical trial. Montalvo and Portela falsified hundreds of pages of documents and entered that false information into clinical trial databases, to make it appear as though the purported subjects had CDAD and were fully participating in the clinical trial, when in fact they were not.
In connection with a February 2018 FDA regulatory inspection of AMB, Montalvo told the FDA regulatory investigator that AMB’s principal investigator had obtained informed consent from all purported CDAD clinical trial subjects, when in fact (and as Montalvo knew) the principal investigator had not done so. As part of the conspiracy, Montalvo also submitted falsified and fraudulent invoices, totaling $277,920.70, in order for AMB to receive payments for conducting the CDAD clinical trial.
Sentencing is scheduled for Nov. 30 before the Honorable K. Michael Moore of the U.S. District Court for the Southern District of Floria.
“Truthful clinical trial data is essential to ensuring that new drug treatments are safe and effective,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work with its law enforcement partners to prosecute those who intentionally falsify clinical trial data for personal profit.”
“Reliable and accurate data from clinical trials is the cornerstone of FDA’s drug approval process. The jury’s finding demonstrates that those who attempt to subvert the regulatory functions of the FDA by making false statements to the agency will be held accountable for their actions,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations Miami Field Office. “We commend the efforts of the Department of Justice for vigorously pursuing the prosecution of this matter.”
FDA’s Office of Criminal Investigations, Miami Field Office, investigated the case, and the U.S. Attorney’s Office of the Southern District of Florida has provided critical assistance.
The Justice Department’s Consumer Protection Branch prosecuted the case.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at www.justice.gov/usao-sdfl.
Mexican National Charged with Human Smuggling and Illegal ReentryRead the Press Release
CONCORD – A previously removed Mexican national has been charged in connection with a human smuggling incident along the New Hampshire-Canada border, U.S. Attorney Jane E. Young announces.
Reynaldo Velasco-Velasco, 36, was charged by criminal complaint with illegal reentry of a removed alien in violation of 8 U.S.C. § 1326 and unlawful transportation of certain aliens in violation of 8 U.S.C. § 1324. Velasco-Velasco made an initial appearance in federal court in Concord on September 5, 2023.
According to the charging documents, on the evening of September 2, 2023, a group of individuals wearing backpacks were observed crossing the international border from Canada near Canaan, Vermont. At approximately 5:30 a.m. the next morning, a U.S. Border Patrol agent observed two vehicles traveling away from the same area. The agent stopped the lead vehicle and determined that all five of its occupants were citizens of Mexico with no lawful authority to be present in the United States. All four passengers had backpacks with them, and their pants appeared wet and dirty from their shins down. The driver was subsequently identified via biometric databases as Velasco-Velasco, a Mexican citizen who was previously removed from the United States in 2011.
The illegal reentry charge provides for a sentence of up to two years in prison, up to one year of supervised release, and a fine of up to $250,000. The alien smuggling charge provides for a sentence of up to five years in prison per count, up to three years of supervised release per count, and a fine of up to $250,000 per count. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Border Patrol led the investigation. Assistant U.S. Attorney Jarad Hodes is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Merrimack Man Pleads Guilty to Stealing More than $100,000 from Confluence MedicalRead the Press Release
CONCORD – A Merrimack man pleaded guilty today in federal court to charges in connection with his theft of funds from his previous employer, U.S. Attorney Jane E. Young announces.
Scott Dulac, 40, pleaded guilty to one count of federal wire fraud charges. U.S. District Court Judge Samantha Elliott scheduled sentencing for December 14, 2023. Defendant was indicted on March 7, 2022.
Dulac worked as the manager of Confluence Medical, a radiologist staffing and recruiting company. He had access to and signatory authority on the company’s bank accounts in order to manage payroll, pay company bills, and arrange for payments to contracted radiologists. On numerous occasions, between early 2019 and early 2020, Dulac made unauthorized fund transfers and cash withdrawals for his own personal benefit in excess of $100,000.
The charging statute provides a sentence of no greater than 20 years in prison, 3 years of supervised release, a fine of up to $250,000. The plea agreement additionally requires Dulac to pay restitution in the amount of $135,000 to the victim company. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation led the investigation. Assistant U.S. Attorney Charles L. Rombeau is prosecuting the case.
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Manchester Man Sentenced to 33 Months in Federal Prison for Unlawfully Possessing, Manufacturing, and Selling FirearmsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ANDREW FRANCOEUR, 36, of Manchester, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant to 33 months of imprisonment, followed by three years of supervised release, for offenses related to his illegal possession, manufacture, and sale of firearms.
According to court documents and statements made in court, as part of an ongoing investigation into the proliferation of privately made firearms (“PMFs” or “ghost guns”) in Connecticut, ATF investigators determined that Francoeur was buying firearm parts from a Missouri company, having the parts shipped to him, and manufacturing guns inside a shipping container on a property in Suffield. Francoeur sold some of the firearms he manufactured.
In September 2022, while Francoeur was incarcerated in state custody for drug and firearm offenses, investigators searched the shipping container and found tools for manufacturing firearms, gun parts, ammunition, and other firearms-related items. In November 2022, investigators retrieved two storage bins used by Francoeur that contained firearm parts, a .22 caliber rifle, more than 1,800 rounds of ammunition, 25 high-capacity magazines, M-80 explosives, firearm gear, and other items.
Francoeur’s criminal history includes felony convictions for firearm, drug, burglary, and failure to appear offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On April 27, 2023, Francoeur pleaded guilty to one count of unlawful possession of a firearm and ammunition by a felon, and one count of manufacturing and dealing in firearms without a license.
Judge Bryant ordered that the 33-month federal sentence run consecutively to the state sentence that Francoeur is currently serving.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and prosecuted by Assistant U.S. Attorney A. Reed Durham.
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.
Man Sentenced for Omaha Guitar Store RobberyRead the Press Release
Acting United States Attorney Susan Lehr announced that Marco A. Lopez, 30, was sentenced today in federal court in Omaha, Nebraska, for robbery and brandishing a firearm during a crime of violence. United States District Court Judge Brian C. Buescher sentenced Lopez to 44 months’ imprisonment on the robbery charge and 91 months’ consecutive on the brandishing a firearm charge, resulting in a sentence of 135 months in the Bureau of Prisons. There is no parole in the federal system. After his release from federal prison, Lopez will begin a 3-year term of supervised release.
On July 1, 2022, Omaha Police Department officers responded to a radio call to Ground Floor Guitar in Omaha for an armed robbery. The store owner told officers that two men entered the store separately before Marco Lopez entered the store. After entering the store, Lopez displayed a black handgun and robbed the store owner of cash and property, specifically several guitars and at least one amplifier. Several customers were also robbed by being instructed to “hand over their wallets.”
Marco Lopez instructed all the victims to move down into the basement where he locked them and a dog into a bathroom, telling them not to come out or he would “shoot them,” while displaying a handgun. The victims eventually left the bathroom and called 911.
On July 2, 2022, Omaha Police were responding to a tip related to a residential break-in, which identified Marco Lopez as a suspect. Marco Lopez and co-defendant Jorge Lopez are cousins. Investigators contacted and interviewed Jorge Lopez, who admitted that both he and Marco Lopez robbed the guitar store, and that Marco Lopez took the cash and guitars with him to Texas after the robbery. Police also searched a truck used in the robbery, finding a wallet belonging to one of the victims and other materials linking the truck to the robbery. Marco Lopez was located and arrested in Texas before being extradited to Nebraska.
Co-defendant Jorge Lopez pleaded guilty to robbery and brandishing a firearm during a crime of violence and was sentenced on July 26, 2023, to 114 months’ imprisonment with three years of supervised release.
This case was investigated by the Omaha Police Department.
Multiple Foreign Nationals Charged in Connection with Conti Ransomware and Trickbot Malware ConspiraciesRead the Press Release
NASHVILLE – Three indictments were unsealed yesterday charging multiple Russian cybercrime actors involved in the Conti ransomware and Trickbot malware schemes.
Conti was a ransomware variant used to attack more than 900 victims worldwide, including victims in the Middle District of Tennessee, approximately 47 states, the District of Columbia, Puerto Rico, and approximately 31 foreign countries. According to the FBI, in 2021, Conti ransomware was used to attack more critical infrastructure victims than any other ransomware variant. According to court documents and public reporting, Trickbot, which was taken down in 2022, was a suite of malware tools designed to steal money and facilitate the installation of ransomware. Hospitals, schools, and businesses were among the millions of Trickbot victims who suffered tens of millions of dollars in losses.
“The Justice Department has taken action against individuals we allege developed and deployed a dangerous malware scheme used in cyberattacks on American school districts, local governments, and financial institutions,” said Attorney General Merrick B. Garland. “Separately, we have also taken action against individuals we allege are behind one of the most prolific ransomware variants used in cyberattacks across the United States, including attacks on local police departments and emergency medical services. These actions should serve as a warning to cybercriminals who target America’s critical infrastructure that they cannot hide from the United States Department of Justice.”
A federal grand jury in the Middle District of Tennessee returned an indictment charging Maksim Galochkin, aka Bentley; Maksim Rudenskiy, aka Buza; Mikhail Mikhailovich Tsarev, aka Mango; and Andrey Yuryevich Zhuykov, aka Defender, all Russian nationals, with conspiring to use Conti ransomware to attack businesses, nonprofits, and governments in the United States beginning in 2020 and continuing through June 2022.
A federal grand jury in the Northern District of Ohio also returned an indictment charging Galochkin, Rudenskiy, Tsarev, Zhuykov, Dmitry Putilin, aka Grad and Staff; Sergey Loguntsov, aka Begemot and Zulas; Max Mikhaylov, aka Baget; Valentin Karyagin, aka Globus; and Maksim Khaliullin, aka Maxfax, Maxhax, and Kagas, with conspiring to use the Trickbot malware to steal money and personal and confidential information from unsuspecting victims, including businesses and their financial institutions located in the United States and around the world, beginning in November 2015.
A federal grand jury in the Southern District of California returned an indictment charging Galochkin in connection with the Conti ransomware attack on Scripps Health on May 1, 2021.
Middle District of Tennessee
The Middle District of Tennessee indictment charges that the individuals behind Conti ransomware, including Galochkin, Rudenskiy, Tsarev, and Zhuykov, conspired to use Conti to attack hundreds of victims. Conti’s victims included hospital systems, local governments, and foreign governments. Conti conspirators allegedly extorted funds from victims in the Middle District of Tennessee and encrypted the computer systems of a local sheriff’s department, a local police department, and local emergency medical services, among others. Ransom notes left on Conti victims’ computer systems typically boasted “if you don’t [know Conti] – just ‘google it.’”
“The conspirators who developed and deployed Conti ransomware victimized businesses, governments, and non-profits around the world, including a sheriff’s office and an emergency medical service in Tennessee,” said United States Attorney Henry C. Leventis for the Middle District of Tennessee. “We will continue to use the full power of this office to ensure that hackers can no longer hide behind their computer screens and to hold them accountable.”
Galochkin was a “crypter” for Conti, modifying the ransomware so that it would not be detected by anti-virus programs; Rudenskiy was a developer who supervised other developers; Tsarev was a manager of other Conti conspirators; and Zhuykov was a systems administrator who managed users of Conti infrastructure, organized and paid for infrastructure and tools, and assisted in problem solving infrastructure-related issues.
Galochkin, Rudenskiy, Tsarev, and Zhuykov are each charged with one count of conspiracy to violate the Computer Fraud and Abuse Act and one count wire fraud conspiracy. If convicted, each defendant faces a maximum penalty of 25 years in prison.
Northern District of Ohio
The indictment returned in the Northern District of Ohio charged all nine defendants for their alleged roles in developing, deploying, managing, and profiting from the malware known as Trickbot. Trickbot was a sophisticated, modular, multi-functional suite of malware tools which (a) infected victims’ computers with malware designed to capture victims’ online banking login credentials; (b) obtained and harvested other personal identification information, including credit cards, emails, passwords, dates of birth, social security numbers, and addresses; (c) infected other computers connected to the victim computer; (d) used the captured login credentials to fraudulently gain unauthorized access to victims’ online bank accounts at financial institutions; (e) stole funds from victims’ bank accounts and laundered those funds using U.S. and foreign beneficiary bank accounts provided and controlled by the defendants and co-conspirators; and (f) installed ransomware on victim computers.
“As alleged in the indictment, Trickbot infected millions of computers worldwide, including those used by hospitals, schools and businesses,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Today’s announcement demonstrates that these dangerous cybercriminals are not anonymous, as they once believed. The indictments unsealed today show the resolve of the international community to work together to bring cybercriminals to justice. We will continue to use all resources at our disposal to stop cybercrime.”
Each defendant is charged with one count of conspiracy to violate the Computer Fraud and Abuse Act, one count of wire fraud conspiracy, and one count of conspiracy to launder the proceeds of the scheme. The indictment also included an enhancement for falsely registering domains. If convicted, each defendant faces a maximum penalty of 62 years in prison.
Latvian national Alla Witte pleaded guilty to conspiracy to violate the Computer Fraud and Abuse Act on June 28, and Russian national Vladimir Dunaev is in custody and pending trial in Cleveland.
Southern District of California
As alleged in the Southern District of California indictment, Galochkin caused the transmission of the Conti malware and impaired the medical examination, diagnosis, treatment, and care of one or more individuals.
Galochkin is charged with three counts of computer hacking. If convicted, he faces a maximum penalty of 20 years in prison.
“The indictment alleges a callous disregard for the medical care and the personal information of residents of the Southern District of California,” said Acting U.S. Attorney Andrew R. Haden for the Southern District of California. “This office is committed to protecting victims of cybercrime and holding perpetrators accountable.”
“The defendants charged in these three indictments across three different jurisdictions allegedly used their cyber knowledge and capabilities to victimize people and businesses around the world without regard for the damage they caused,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “These indictments should serve as a reminder that no matter a cybercriminal’s location, we will identify and pursue them by doing everything in our power to ensure they face the consequences of their actions.”
"Today’s announcement shows our ongoing commitment to bringing the most heinous cyber criminals to justice—those who have devoted themselves to inflicting harm on the American public, our hospitals, schools, and businesses,” said FBI Director Christopher Wray. “Cyber criminals know that we will use every lawful tool at our disposal to identify them, tirelessly pursue them, and disrupt their criminal activity. We, alongside our federal and international partners, will continue to impose costs through joint operations no matter where these criminals may attempt to hide.”
“Conti ransomware was used to exploit our financial systems and target hundreds of innocent victims,” said Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division. “The Secret Service will continue to work with our local, state, and federal law enforcement partners to investigate cybercriminals and bring offenders to justice.”
The FBI San Diego, Memphis, and El Paso Field Offices, with U.S. Secret Service, are leading the investigation into Conti ransomware. The U.S. Attorney’s Office for the Western District of Texas provided significant assistance.
Assistant U.S. Attorney Taylor J. Phillips for the Middle District of Tennessee, Assistant U.S. Attorneys Jonathan Shapiro and Kareem Salem for the Southern District of California, and Trial Attorney Sonia V. Jimenez and Senior Counsel Ryan K.J. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Conti ransomware cases.
The FBI Cleveland Field Office is leading the investigation into Trickbot malware.
Assistant U.S. Attorneys Daniel Riedl and Duncan Brown for the Northern District of Ohio and Senior Counsel Candina Heath of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Trickbot malware case.
The Justice Department’s National Security Division provided significant assistance in the Conti ransomware and Trickbot malware investigations.
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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Lowell Man Pleads Guilty to Possessing Half a Kilogram of Methamphetamine Intended for DistributionRead the Press Release
BOSTON – A Lowell man pleaded guilty today in federal court in Boston to methamphetamine charges and possessing of a firearm with an obliterated serial number.
Ravouth Chhoy, 34, pleaded guilty to one count of possession with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and one count of possession of a firearm with an obliterated serial number. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Dec. 7, 2023. Chhoy was indicted by a federal grand jury in August 2022.
Chhoy agreed to distribute more than 5,000 counterfeit Adderall pills containing methamphetamine to a confidential source. Before Chhoy could complete this transaction, law enforcement intercepted Chhoy and recovered more than 6,000 pills – weighing approximately 1.85 kilograms. Additionally, a search of Chhoy’s residence resulted in the recovery of a firearm with an obliterated serial number.
The charge of possession with intent to distribute 500 grams or more of a mixture or substances containing a detectible amount of methamphetamine provides for a mandatory minimum sentence of 10 years and up to life years in prison, at least five years of supervised release and a fine of $5 million. The charge of possession of a firearm with an obliterated serial number provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Boston Police Department provided critical assistance in the investigation of this case. Assistant U.S. Attorney Evan Panich of the Narcotics & Money Laundering Unit is prosecuting the case.
Lehigh Acres Armed Career Criminal Sentenced to 18 Years in Prison for Firearm and Drug OffensesRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Louis Michael Pasquazzi (53, Lehigh Acres) to 18 years in federal prison for possessing a firearm and ammunition as a convicted felon and for possessing a controlled substance with the intent to distribute it. The court also ordered Pasquazzi to forfeit the firearms and ammunition he illegally possessed. Pasquazzi had previously pleaded guilty on April 26, 2023.
According to court documents, on July 12, 2022, Lee County Sheriff’s Office narcotics detectives were conducting surveillance on a residence in Lehigh Acres when they observed Pasquazzi enter the driver’s seat of a black Cadillac Escalade that was backed into the driveway. Detectives then observed the Escalade rapidly exit the driveway, travel eastbound, and fail to stop at a stop sign. Detectives initiated a traffic stop of the vehicle and made contact with Pasquazzi at the driver’s side window. While speaking with Pasquazzi, detectives could smell the odor of marijuana coming from inside of the vehicle. An LCSO canine unit was deployed and conducted a free air sniff of the Escalade and alerted to the presence of narcotics inside. LCSO detectives searched the Escalade and located a black SCCY 9mm firearm under the driver’s seat and a Ruger .40 caliber S&W firearm in the glovebox. Detectives also found a bulky plastic bag containing 62.01 grams of cocaine on Pasquazzi’s person.
LCSO detectives then obtained a search warrant for the residence from which Pasquazzi had been observed leaving. Inside Pasquazzi’s bedroom, LCSO detectives located a Marlin Arms .22 rifle, a Masterpiece Arms 9mm sub-machine gun, a Taurus G3 9mm firearm, a Ruger AR-556 rifle, and more than 500 rounds of assorted ammunition. The safe in Pasquazzi’s bedroom closet was also accessed and searched by detectives. Inside of the safe, detectives located approximately 353 grams of cocaine. Also, inside Pasquazzi’s bedroom, detectives found articles of drug paraphernalia used to distribute and manufacture controlled substances, including measuring cups, packaging material, and cutting agents.
This case was investigated by the Lee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Trent Reichling.
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.
Leader of Murderous St. Louis Drug Organization Sentenced to 20 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Thursday sentenced one of the leaders of a murderous St. Louis drug trafficking organization to 20 years in prison.
Maurice Herbert Lee II, 35, obtained bulk fentanyl and crystal methamphetamine from Arizona and supplied it to his co-conspirators, who sold over 20,000 doses per week at the height of the conspiracy. Lee also offered cash bounties of between $5,000 and $15,000 for the murder of rival gang members or drug dealers.
When he pleaded guilty in May to one count of conspiracy to distribute and possess with intent to distribute fentanyl, one count of conspiracy to distribute and possess with intent to distribute methamphetamine and two counts of conspiracy to possess a firearm in furtherance of drug trafficking, Lee admitted to offering and paying the bounty for the killing of two different men.
Alexander Noodel was fatally shot on May 8, 2017 by Tremayne Silas, now 30, and Jerome Lamont Fisher Jr., 30, Lee’s plea agreement says. The men fired over 100 rounds.
Lee also paid a $10,000 bounty for the murder of Kevin Davis Jr., 24, on June 30, 2017 in the 1900 block of Belt Avenue in St. Louis. Lee paid Delvin Bost, who paid Michael “Beezy” Johnson, 30, plea agreements by Lee and Bost say.
Lee also admitted supplying methamphetamine to another person who then redistributed it. He admitted being responsible for between 4 and 12 kilograms of fentanyl and between 500 grams and 1.5 kilos of methamphetamine.
Fisher and Bost were among Lee’s “runners,” who dealt fentanyl for him. Christopher Jerrin Warlick Jr., 27, Norris Douglas Jr., 31, Mikell Rayford, 26, Sherod Jacolby Tucker, 34, Jerry O. Streeter Jr., 35, and Maricus Davon Futrell, 23, were others listed as runners in Lee’s plea agreement.
Bost, 28, pleaded guilty in May to conspiracy to possess a firearm in furtherance of drug trafficking and possession with intent to distribute methamphetamine. Bost is serving a nine-year sentence. Judge White sentenced both Silas and Johnson to 18 years in prison. Fisher is scheduled to be sentenced September 19, with both sides recommending 17 years in prison.
All 17 defendants who were charged in the case pleaded guilty.
The case was investigated by the St. Louis County Police Department, the St. Louis Metropolitan Police Department and the Drug Enforcement Administration. Assistant U.S. Attorneys Paul D’Agrosa and Mohsen Pasha are prosecuting the case.
Justice Department Finds State of New Jersey Violated U.S. Constitution with Deficient Care at Two State Run Veterans’ HomesRead the Press Release
The Justice Department announced today that it has concluded an investigation into whether New Jersey subjected residents of two veterans’ homes to conditions that violate the 14th Amendment of the United States Constitution.
The department found reasonable cause to believe the residents of the New Jersey Veterans Memorial Homes at Menlo Park and Paramus face unreasonable harm and risk due to inadequate infection control practices and inadequate medical care, in violation of the U.S. Constitution. The New Jersey Department of Military and Veterans Affairs operates the homes, which provide long-term nursing care to veterans and their families.
“We owe the veterans who served our nation our deepest thanks, and those veterans and their family members who live in these facilities have the right to appropriate care,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Based on our investigation, we have found that these facilities have provided inadequate protection from infections and deficient medical care, which have caused these veterans and their families great harm. We look forward to working with the New Jersey Department of Military and Veterans Affairs to improve the conditions in these homes they operate and ensure these veterans and their families receive the care they need and deserve.”
“Those who served to protect this nation and their families are entitled to appropriate care when they reside at a veterans’ home,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “The Paramus and Menlo Park veterans’ homes fail to provide the care required by the U.S. Constitution and subject their residents to unacceptable conditions, including inadequate infection control and deficient medical care. These conditions must swiftly be addressed to ensure that our veterans and their families at these facilities receive the care they so richly deserve. We will not stop working until they do.”
The inadequate infection control practices and inadequate medical care at the homes are compounded by a lack of effective management and oversight. Such deficiencies expose residents to uncontrolled, serious and deadly infections and have resulted in the veterans’ homes suffering among the highest number of resident deaths of all similarly sized facilities in the region.
The investigation was conducted under the Civil Rights of Institutionalized Persons Act (CRIPA), which authorizes the Justice Department to act to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run residential institutions.
As required by CRIPA, the department provided the state with written notice setting out the department’s conclusions and the supporting facts. The department also notified the state of the minimum remedial measures necessary to address the alleged violations.
The Special Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey conducted the investigation.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of New Jersey is available on its website at www.justice.gov/usao-nj/civil-rights-enforcement.
Idaho Falls Man Sentenced to over 11 Years in Federal Prison for Receiving Child PornographyRead the Press Release
POCATELLO – Che Tayen Miles, 39, of Idaho Falls, was sentenced to federal prison for receipt of child pornography, U.S. Attorney Josh Hurwit announced today. Chief U.S. District Judge David C. Nye sentenced Miles to 136 months in federal prison followed by 8 years of supervised release.
According to court records, between July and September of 2022, the Idaho Internet Crimes Against Children (ICAC) Task Force found that Nathan Mark Law, 49, of Idaho Falls, had downloaded thousands of images of child pornography also known as, “child sexual abuse material” (CSAM) over the internet. Investigators executed a search warrant of Law’s residence where they discovered CSAM on Law’s electronic devices. Law admitted he downloaded and uploaded images of CSAM and shared CSAM images with Miles. On December 21, 2022, investigators executed a search warrant at Miles’s residence and seized his electronic devices. Miles admitted he downloaded CSAM and that he received CSAM from Law. Upon searching Miles’s electronic devices investigators discovered thousands of CSAM images that Miles downloaded from the internet as well as CSAM images that Miles received from Law.
On June 26, 2023, Law pleaded guilty to attempted sexual exploitation of a minor child. He is scheduled to be sentenced by Chief Judge Nye on October 8, 2023, and faces a minimum of 15 and up to 30 years in federal prison and up to a lifetime of supervised release.
“We are grateful that justice will be served in these cases. But our collaborative work to guard Idaho’s children continues,” said U.S. Attorney Hurwit. “Together with our local, state, and federal law enforcement partners, my office is committed to tracking down and aggressively pursue anyone in Idaho who creates, possesses, or shares child pornography.”
“This sentence is appropriate for someone who perpetuated child victimization by downloading and sharing thousands of images of exploited children,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI partnerships with the ICAC Taskforce and Idaho law enforcement are integral in keeping our communities safe from child predators.”
These cases were investigated by the Idaho ICAC Task Force, Homeland Security Investigations, the Idaho Falls Police Department, and the Bonneville County Sheriff’s Office. Assistant U.S. Attorney Justin Paskett is prosecuting these cases.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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.
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Holly Ridge Man Who Sliced Witness’ Throat Sentenced to 20 Years for Firearm PossessionRead the Press Release
NEW BERN, N.C. – A Holly Ridge man who sliced a witness’ throat and stabbed a child, was sentenced to 240 months imprisonment followed by 60 months of supervised release for Possession of a Firearm by a Felon and Possession of a Stolen Firearm. Avery Ray Brinson, age 29, pled guilty to the charges on March 24, 2023. Brinson is a convicted felon and has three or more prior convictions for violent felonies making him subject to the penalties of the Armed Career Criminal Act.
According to court documents and other information presented in court Brinson was investigated by the Holly Ridge Police Department in May and July 2021 for firearm related offenses. On May 30, 2021, Brinson was at a friend’s house and learned the friend kept a firearm in his living room. Brinson stole the firearm and left the house. When the friend discovered his firearm was missing, he watched the surveillance video from his home security system and saw Brinson steal the firearm. The following day he confronted Brinson about the theft. Brinson denied knowing anything about the missing firearm until the victim told Brinson about the home security footage capturing the theft. Brinson then acknowledged he stole the firearm and returned it. The friend did not call law enforcement, thinking the matter had been handled.
The next day, June 1, 2021, Brinson broke into the friend’s house and stole multiple items, including a different firearm. Brinson disabled the home security system by cutting the power to the entire residence. The investigation revealed that after Brinson stole the firearm, law enforcement was approached by a man who said Brinson ran into his house and stashed something under the master bed. Law enforcement went to the residence and retrieved a .308 Savage Rifle from under the bed. The friend and victim of the breaking and entering confirmed it was his firearm.
The female resident of the home where Brinson stashed the gun gave a statement implicating Brinson to law enforcement on July 21, 2021, about the breaking and entering and the firearm being found in her home. On June 22, 2021, Brinson went to the female’s house and attacked her, slicing her throat and stabbing her multiple times. When a juvenile, who was also at the house, tried to protect the female resident, he was stabbed seven times. Both underwent immediate medical attention and survived the attack.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. U.S. District Judge Louise W. Flanagan presided over the sentencing. The Holly Ridge Police Department investigated the case and Assistant U.S. Attorneys Charity Wilson and William Van Trigt prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-21-FL
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HSI San Juan Arrests Cataño Woman on Child Exploitation and Sex Trafficking ChargesRead the Press Release
SAN JUAN, Puerto Rico – Homeland Security Investigations (HSI) and the Puerto Rico Crimes Against Children Task Force (PRCACTF), along with the Puerto Rico Police Bureau (PRPB) arrested Daryana González Montañez, a 30-year-old woman from Cataño, PR, for sex trafficking of children, production on child pornography, and transportation of a minor with intent to engage in criminal sexual activity.
According to court documents, from February through March 28, 2023, Daryana González Montañez, recruited, enticed, harbored, transported, provided, obtained, advertised, maintained, and patronized a 14-year-old minor female to engage in sexual activity for profit. González Montañez also employed, used, persuaded, induced, enticed, and coerced the same minor to engage in sexually explicit conduct for the purpose of producing and transmitting child pornography.
“Human trafficking – particularly trafficking of children – is a reprehensible crime with far reaching consequences,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “The United States Attorney’s Office and law enforcement agencies will continue to take full advantage of our investigative tools and prosecution powers in order to protect our children from sexual predators. We want to remind the public to report all inappropriate behavior with children to their local authorities and together, local and federal law enforcement will see that justice is carried out.”
Special Agent in Charge Rebecca González-Ramos stated: “We have been following the pattern of this woman for a few months now. We have implemented our Victim Centered Approach; forensic interviews were performed, and data was gathered from digital equipment. All these efforts resulted in good evidence for a strong case of human trafficking in Puerto Rico. The victim and her family have the support they need to face this horrendous experience; and our special agents will continue this process until justice is served. We will continue to support and work with all our fellow law enforcement partners to get dangerous offenders off the streets. There will be zero tolerance for those who intend to harm our children.”
Assistant U.S. Attorney Daynelle Álvarez-Lora of the Child Exploitation and Immigration Unit is prosecuting the case. If convicted, the defendant faces a statutory minimum sentence of 10 years up to life in prison for sex trafficking of children; 15 up to 30 years in prison for production of child pornography; and 10 years up to life in prison for transportation of a minor with intent to engage in criminal sexual activity. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The defendant was transferred to the Guaynabo Metropolitan Detention Center to await further judicial proceedings.
For more information about HSI’s efforts to protect children from sexual predators, visit https://www.ice.gov/topics/iGuardians; and to denounce suspicious activities call 787-729-6969.
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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About Homeland Security Investigations
HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of more than 8,700 employees consists of more than 6,000 special agents assigned to 237 cities throughout the United States, and 93 overseas locations in 56 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.
# HSI #
Fraud Charges Added Against Health Care Staffing Executive in Las VegasRead the Press Release
LAS VEGAS - A federal grand jury in Las Vegas returned a superseding indictment yesterday charging a health care staffing executive with conspiring to fix the wages of Las Vegas nurses — and then fraudulently concealing that conspiracy and the government’s investigation so that he could sell his company for over $10 million.
According to the six-count felony indictment, Eduardo Lopez, of Las Vegas, held executive positions at three different home health agencies. For each company, Lopez oversaw recruitment, hiring, retention and assignments of nurses and other health care staff. Count one of the superseding indictment charges Lopez and other unnamed co-conspirators with agreeing to suppress and eliminate competition for the services of nurses between March 2016 and May 2019.
Counts two through six of the superseding indictment charge Lopez with wire fraud. According to the indictment, in December 2021, Lopez sold his health care staffing company for over $10 million and falsely represented to the buyer of his company that federal law enforcement was not investigating him or his company. But, according to court documents, Lopez knew that was false. FBI special agents had questioned Lopez, served Lopez with a grand jury subpoena addressed to his company and seized his cell phone pursuant to a search warrant.
“Wage fixing hurts workers,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division will aggressively investigate and prosecute wage-fixing conspiracies and any fraudulent conduct aimed at keeping the illicit profits of such conspiracies.”
“Today’s superseding indictment demonstrates our ongoing commitment to enforce federal antitrust laws and to ensure workers have an opportunity to compete for employment in a fair marketplace,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We will continue to work with the Antitrust Division and our law enforcement partners to protect the right of workers to earn a fair wage, and to root out wrongdoers who commit unlawful anticompetitive conduct.”
“The FBI and its partners will not tolerate the illicit practice of fixing wages,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “As today’s indictment shows, we will continue to pursue anyone engaging in fraudulent activity and combat any attempts made to evade the consequences of those actions.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum. A violation of the wire fraud statute carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s San Francisco Office and the FBI’s International Corruption Unit investigated the case, with assistance from the U.S. Attorney’s Office for the District of Nevada.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
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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Fraud Charges Added Against Health Care Staffing Executive in Las VegasRead the Press Release
A federal grand jury in Las Vegas returned a superseding indictment yesterday charging a health care staffing executive with conspiring to fix the wages of Las Vegas nurses — and then fraudulently concealing that conspiracy and the government’s investigation so that he could sell his company for over $10 million.
According to the six-count felony indictment, Eduardo Lopez, of Las Vegas, held executive positions at three different home health agencies. For each company, Lopez oversaw recruitment, hiring, retention and assignments of nurses and other health care staff. Count one of the superseding indictment charges Lopez and other unnamed co-conspirators with agreeing to suppress and eliminate competition for the services of nurses between March 2016 and May 2019.
Counts two through six of the superseding indictment charge Lopez with wire fraud. According to the indictment, in December 2021, Lopez sold his health care staffing company for over $10 million and falsely represented to the buyer of his company that federal law enforcement was not investigating him or his company. But, according to court documents, Lopez knew that was false. FBI special agents had questioned Lopez, served Lopez with a grand jury subpoena addressed to his company and seized his cell phone pursuant to a search warrant.
“Wage fixing hurts workers,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division will aggressively investigate and prosecute wage-fixing conspiracies and any fraudulent conduct aimed at keeping the illicit profits of such conspiracies.”
“Today’s superseding indictment demonstrates our ongoing commitment to enforce federal antitrust laws and to ensure workers have an opportunity to compete for employment in a fair marketplace,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We will continue to work with the Antitrust Division and our law enforcement partners to protect the right of workers to earn a fair wage, and to root out wrongdoers who commit unlawful anticompetitive conduct.”
“The FBI and its partners will not tolerate the illicit practice of fixing wages,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “As today’s indictment shows, we will continue to pursue anyone engaging in fraudulent activity and combat any attempts made to evade the consequences of those actions.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum. A violation of the wire fraud statute carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s San Francisco Office and the FBI’s International Corruption Unit investigated the case, with assistance from the U.S. Attorney’s Office for the District of Nevada.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.