Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 19 July 2023
Five Sentenced to Prison on Federal Drug ChargesRead the Press Release
BENTON, Ill. – A U.S. District judge sentenced the final defendant of five total co-conspirators for his involvement in a large-scale methamphetamine operation in southern Illinois.
Robert Smith, 42, of Los Angeles, California, was sentenced to 27 years in federal prison. Smith pled guilty to one count of conspiracy to distribute methamphetamine and one count of conspiracy to launder money.
The case involved more than 100 pounds of methamphetamine distributed in the Southern District of Illinois.
Co-conspirator William Moore, 39, of East St. Louis, pled guilty to five counts of distributing methamphetamine, one count of attempted possession with the intent to distribute methamphetamine, one count of conspiracy to distribute methamphetamine, and one count of conspiracy to launder money. He received a 30-year federal prison sentence on April 20, 2022, and he will serve five years of supervised release.
Michael Huffman, 37, of Salem, Illinois, pled guilty to one count of distributing methamphetamine, one count of attempted possession with the intent to distribute methamphetamine, and one count of conspiracy to distribute methamphetamine. He received an 8-year federal prison sentence on Oct. 27, 2022, and he will serve three years of supervised release.
Stacey Barkley, 36 of Caseyville, Illinois, pled guilty to one count of conspiracy to distribute methamphetamine. She was sentenced to 87 months in federal prison on Sept. 15, 2021, and she will serve three years of supervised release.
Michael Greene, 54, of St. Louis, pled guilty to one count of possession with the intent to distribute methamphetamine and one count of conspiracy to distribute methamphetamine. He received a 25-month federal prison sentence on Feb. 9, 2023, and he will serve four years of supervised release.
“Trafficking dangerous and addictive drugs into and around southern Illinois will earn conspirators time in federal prison,” said U.S. Attorney Rachelle Aud Crowe. “Thanks to this collaborative effort by law enforcement, more criminals are behind bars.”
"Despite the attention given to fentanyl, methamphetamine remains the top drug seized by quantity in Southern Illinois and is still responsible for destroying many lives," said Special Agent in Charge Michael A. Davis, head of the Drug Enforcement Administration division that leads DEA investigations in Southern Illinois, as well as Missouri and Kansas. "DEA and our federal, state and local partners are dedicated to stopping drug distribution and money laundering operations like this one to protect our citizen's lives and health from the menace of illicit drugs."
“Whenever someone involved in drug trafficking is sentenced to prison, it’s a victory for local communities,” said Special Agent in Charge Thomas F. Murdock, IRS Criminal Investigation’s St. Louis Field Office. “Drug traffickers are in business to make money and they don’t care who they hurt to achieve that objective. The special agents of IRS-CI are proud to use their financial expertise to help find and disrupt drug trafficking networks and put a stop to the harm they do to communities.”
According to court documents, DEA agents investigated the defendants for distributing methamphetamine in St. Clair County from February to October 2019. In recorded buys, confidential sources purchased more than 750 grams of methamphetamine from Moore on five occasions at a restaurant in East St. Louis.
On July 9, 2019, Greene received more than 58 grams of methamphetamine from Moore with intent to distribute. On July 10, 2019, agents seized a package of 6,310 grams of methamphetamine before Huffman could retrieve at Moore’s request. On Aug. 19, 2019, agents arrested Barkley in possession of more than 100 grams of methamphetamine from Moore.
In court proceedings, Smith was held responsible for supplying more than 100 pounds of methamphetamine from California in the drug operation led by Moore. In furtherance of the financial crime conspiracy, Moore laundered drug proceeds for Smith to facilitate the trafficking operation.
DEA led the investigation with support from the IRS. Assistant U.S. Attorney Amanda Fischer prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Forces operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Five Members of Drug Trafficking Organization Plead Guilty to Federal Drug CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ricky Edward Hall, 29, of Covington, Oklahoma, Christopher Adam Banschbach, 37, an inmate at the Davis Correctional Facility in Holdenville, Oklahoma, Brittany Marie Cagle, 34, of Wagoner, Oklahoma, Christina Gail Pool, 42, of Muskogee, Oklahoma, and Joshua Levi Kendrick, 41, of Muskogee, Oklahoma, all entered guilty pleas in relation to drug trafficking methamphetamine in Eastern Oklahoma.
Banschbach entered a guilty plea to one count of Drug Conspiracy on July 13, 2023.
Kendrick entered a guilty plea to one count of Drug Conspiracy and one count of Possession with Intent to Distribute Methamphetamine on July 10, 2023.
Hall entered a guilty plea to one count of Drug Conspiracy and one count of Possession with Intent to Distribute Methamphetamine on June 28, 2023.
Pool entered a guilty plea to one count of Drug Conspiracy and one count of Possession with Intent to Distribute Methamphetamine on May 16, 2023.
Cagle entered a guilty plea to one count of Drug Conspiracy and one count of Possession with Intent to Distribute Methamphetamine on May 4, 2023.
The indictment alleged that from March of 2022 until November of 2022, Hall, Banschbach, Cagle, Pool, and Kendrick actively participated in a drug trafficking organization partially comprised of members and affiliates of the Universal Aryan Brotherhood, a prison gang. The defendants conspired to distribute methamphetamine in the Eastern District of Oklahoma and elsewhere. During the conspiracy, Banschbach was an inmate at the Davis Correctional Facility in Holdenville, Oklahoma.
The charges arose from an investigation by the Muskogee Police Department, the Tulsa County Sheriff’s Department, and the Oklahoma Bureau of Narcotics.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, accepted the pleas and ordered the completion of presentence investigation reports. Hall, Banschbach, Cagle, Pool, and Kendrick will remain in custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Zachary W. Parsons and Assistant United States Attorney Ryan E. Bondura represented the United States.
Five Individuals Charged in Multi-State COVID-19 Relief Program Fraud SchemeRead the Press Release
riveraetal.complaint.pdfCAMDEN, N.J. – Five individuals were charged for their roles in fraudulently obtaining federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) and for laundering the loan proceeds, U.S. Attorney Philip R. Sellinger announced today. Two other individuals pleaded guilty to fraudulently obtaining PPP and EIDL loans.
Eric Rivera, 43, of Norcross, Georgia, is charged by complaint with one count of conspiracy to commit bank fraud, one count of conspiracy to commit wire fraud, and one count of conspiracy to commit money laundering. He made is initial appearance in federal court in the Northern District of Georgia and was released on $10,000 unsecured bond. Lisa Smith, 60, of Cornelius, North Carolina, and Sieff Robert Sargeant, 43, of Island Park, New York, are charged by complaint with one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering. Smith had her initial appearance in the Western District of North Carolina and was released on $25,000 unsecured bond. Sargeant is scheduled to make his initial appearance today before Magistrate Judge Ann Marie Donio in Camden federal court.
Adrienne Ponzo, 48, of Bear, Delaware, is charged by complaint with one count of conspiracy to commit wire fraud, and remains at-large. James Wessels, 53, of Middletown, Delaware, is charged by complaint with one count of conspiracy to commit money laundering. He made his initial appearance before Judge Donio and was released on $100,000 unsecured bond.
According to the criminal complaints:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (PPP). The CARES Act also authorized the Small Business Administration to provide Economic Injury Disaster Loans (EIDLs) of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.
To obtain a PPP or EIDL loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and expenses. In addition, businesses generally had to provide supporting documentation.
According to documents filed in these cases and statements made in court:
In one conspiracy, Rivera conspired with Smith, Sargeant, and others to defraud the PPP loan program. Rivera recruited individuals – including Sargeant – who owned businesses with minimal operations, employees, revenues, and profits, and introduced them to Smith. Smith prepared fraudulent PPP applications for these businesses and created false tax returns that were created solely for purposes of applying for the PPP and EIDL loans and were never submitted to the IRS. The applicants, including Sargeant, electronically signed the applications, which were then submitted to lenders. Rivera received payments of 15 to 50 percent of the loan proceeds for his role in orchestrating this scheme.
In the second conspiracy, Rivera conspired with Ponzo and others to defraud the EIDL loan program. He recruited individuals who owned businesses with minimal operations, employees, revenues, and profits and introduced them to Ponzo, who prepared fraudulent EIDL applications for these businesses and caused them to be electronically submitted to the Small Business Administration. Rivera received payments of 15 to 50 percent of the loan proceeds for his role in orchestrating this scheme.
In the third conspiracy, Rivera conspired with Smith, Wessels, and Sargeant to structure the PPP loan proceeds and paperwork to conceal that the proceeds actually were being spent on non-payroll expenses. Rivera and Smith introduced Sargeant to Wessels, who created fake payroll checks and provided them to Sargeant. Sargeant distributed the fake payroll checks to friends and family members, who cashed the checks and returned the majority of the cash to Sargeant. Smith then used the fake payroll documentation to submit a loan forgiveness application for Sargeant’s business that falsely stated that Sargeant spent 66 percent of the loan amount on payroll expenses.
The counts of conspiracy to commit bank fraud are each punishable by a maximum of 30 years in prison and a $1 million fine. The counts of conspiracy to commit wire fraud are each punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The count of conspiracy to commit money laundering is punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
Earlier this month, Yasha Barjona, 67, and William Ingram, 43, each pleaded guilty before U.S. District Judge Karen Williams to one count of bank fraud conspiracy.
According to documents filed in these cases and statements made in court:
Ingram and Barjona owned businesses with minimal operations, employees, revenues, and profits. Rivera introduced Ingram and Barjona to Ponzo and Smith. Ponzo prepared fraudulent EIDL applications for Ingram’s and Barjona’s businesses and Smith prepared fraudulent PPP applications for Ingram’s and Barjona’s businesses. Ingram and Barjona electronically signed and submitted these applications, which contained materially false and fraudulent information about the businesses and included false tax returns that were created solely for purposes of applying for the PPP and EIDL loans and were never submitted to the IRS. Ponzo and Smith also prepared fraudulent EIDL and PPP applications for businesses controlled by associates of Barjona.
Barjona and his associates received approximately $724,300 in PPP and EIDL proceeds and paid kickbacks to Rivera of approximately 50 percent of the loan amounts. Ingram received approximately $551,600 in PPP and EIDL proceeds and paid kickbacks to Rivera of approximately 15 percent of the loan amounts. After Ingram received the PPP loans, Rivera and Smith introduced Ingram to Wessels, who prepared fake payroll documents to conceal that the proceeds were being spent on non-payroll expenses. Sentencing for Ingram’s sentencing is scheduled for Nov. 7, 2023, and for Barjona, Nov. 15, 2023.
U.S. Attorney Sellinger credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; special agents of the Social Security Administration, Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; and special agents of the U.S. Department of Labor, Office of the Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the charges and guilty pleas.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman and Attorney-in-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
barjona.information.pdf riveraetal.complaint.pdf
ingram.information.pdfFirearms Trafficker from Chicago Suburb Sentenced to Four Years in Federal PrisonRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to four years in federal prison for assisting in the illegal sales of two firearms.
JEFFREY GREER, 57, of North Aurora, Ill., assisted a relative in selling a shotgun and a revolver to an individual in the fall of 2019. Unbeknownst to Greer, the buyer was cooperating with law enforcement. Greer helped negotiate the terms of the deal during a meeting in his relative’s home in North Aurora, Ill., and then transported the guns to the cooperating individual’s truck.
Greer pleaded guilty earlier this year to a federal charge of dealing firearms without a license. U.S. District Judge Sara L. Ellis imposed the sentence after a hearing July 13, 2023, in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives and the Addison, Ill., Police Department provided valuable assistance. The government was represented by Assistant U.S. Attorney Patrick Mott.
Disrupting illegal firearms trafficking is a centerpiece of the Chicago Firearms Trafficking Strike Force, the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence. As part of the Chicago Strike Force, the U.S. Attorney’s Office collaborates with FBI, ATF, and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding illegal firearm dealers accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office has deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Final Defendant Sentenced to 51 Months in Federal Prison for a Racketeering Conspiracy to Smuggle Contraband into the Chesapeake Detention FacilityRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III, sentenced Bernard Bay, age 53, of Baltimore, to 51 months in federal prison, followed by three years of supervised release, for a racketeering conspiracy at the Chesapeake Detention Facility (CDF), in Baltimore, Maryland. Judge Russell ordered that Bey’s federal sentence be served consecutive to the 10 year sentence that Bey is currently serving for possession of a stolen firearm. Bey, who was a leader in the conspiracy, is the final defendant in the conspiracy to be sentenced. Three former correctional officers (COs), three other detainees, and two outside “facilitators” pleaded guilty or were convicted after trial for their roles in the conspiracy, which involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison. Bey’s co-defendants were sentenced to between 18 and 51 months in federal prison.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Carolyn J. Scruggs of the Maryland Department of Public Safety and Correctional Services.
According to court documents and the evidence presented at trial, CDF is run by the Maryland Department of Public Safety and Correctional Services (DPSCS) pursuant to a contract with the United States Marshals Service (USMS) and is used for the housing of federal pretrial detainees.
According to his plea agreement, from at least 2018 through June 2020, Bey conspired with other detainees, employees and associates of CDF to smuggle contraband into CDF, including narcotics, cell phones, and tobacco, in exchange for bribe payments. Bey had a romantic relationship with CO Talaia Youngblood and she met with outside facilitators at Bey’s direction to receive contraband and bribe payments, as well as the cellular telephone that she used to communicate with Bey. For example, in March 2020 Bey sent a note to CO Youngblood telling her that an outside facilitator would be providing her with marijuana and CDs and DVDs to smuggle into CDF. Bey also told Youngblood to contact a second outside facilitator, whom Bey called “Fatman,” so that Fatman could provide her with a pair of designer sunglasses as a bribe.
As detailed in his plea agreement, during the Spring of 2020, Bey made a $500 bribe payment to another CO through an outside facilitator after CO Youngblood stopped showing up to work. In August 2018, Bey paid a bribe to a third CO, Andre Davis, who then smuggled a smart watch and a package containing tobacco into CDF for Bey.
United States Attorney Erek L. Barron commended the FBI and DPSCS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Peter J. Martinez and Robert I. Goldaris, 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 www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Federal Jury Convicts Adair County Resident of Four Counts of Aggravated Sexual AbuseRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that Daniel Wayne Bayless, age 26, of Adair County, Oklahoma, was found guilty by a federal jury of four counts of Aggravated Sexual Abuse in Indian Country.
The jury trial began with testimony on July17, 2023, and concluded on July 18, 2023, with the guilty verdicts.
During the trial, the United States presented evidence that in 2020 Bayless sexually assaulted a minor victim under the age of 12 on multiple occasions. The Government also presented evidence Bayless victimized another child ten years prior. The crimes occurred in Adair County, within the boundaries of the Cherokee Nation Reservation of Oklahoma, in the Eastern District of Oklahoma.
The guilty verdicts were the result of investigations by the Adair County Sheriff’s Office and the Federal Bureau of Investigation.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the trial in Muskogee and ordered the completion of a presentence report. The sentencing will be scheduled following completion of the report. Bayless will remain in custody of the United States Marshal until sentencing.
Assistant United States Attorneys Nicole Paladino and Morgan Muzljakovich represented the United States.
Federal Grand Jury Returns Charges for Covid-19 FraudRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces Ikponmwosa Pero Erhinmwinrose has been indicted by a federal grand jury on charges of conspiracy to commit wire fraud, conspiracy to commit money laundering, wire fraud, and aggravated identity theft. The defendant made his initial appearance in front of U.S. District Court Magistrate Judge N. Reid Neureiter on July 17, 2023. Three other defendants—Victor Henshaw Tobore, Nyerhovwo Presley Agbure, and Oreoluwa Abdul-Jabbar Elegba—were indicted in the same case and made their initial appearances in federal court earlier in July 2023.
According to the information contained in the indictment, Erhinmwinrose and his co-conspirators—referred to as the Fraud Ring—fraudulently obtained more than $7,700,000 in loans and grants under names other than their own from programs authorized by Congress in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was intended to provide emergency financial assistance for millions of American small businesses suffering economic harm caused by the COVID-19 pandemic. These programs included the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. The United States Small Business Administration (SBA) directly paid EIDLs and grants (EIDGs) to eligible small businesses experiencing substantial financial disruptions from the COVID-19 pandemic. PPP loan applications were processed by participating lenders. Lenders funded PPP loans using their own funds, which were guaranteed by the SBA.
The alleged conspiracy involved Erhinmwinrose and other Fraud Ring participants—using the names and identifying information of others—registering fraudulent corporate entities with state governments, obtaining fraudulent employer tax identification numbers from the Internal Revenue Service (IRS), creating fraudulent bank accounts at financial institutions, falsifying payroll and employment data, and fabricating tax and bank documents. These actions were taken to mislead lenders so that Fraud Ring participants could then fraudulently obtain loans and grants while hiding their own involvement in the conspiracy and scheme to defraud. After PPP and EIDL fraud funds—as well as fraudulently obtained federal tax refunds from the IRS and benefits from unemployment programs run by states including Colorado, Illinois, New Jersey, New York, and Ohio—were deposited in fraudulent bank accounts, the indictment further alleges that Fraud Ring participants conspired to launder the money.
This case is being investigated by the Treasury Inspector General for Tax Administration; the SBA Office of the Inspector General, the Federal Deposit Insurance Corporation Office of the Inspector General, and the U.S. Postal Inspection Service. This case is being prosecuted by Assistant United States Attorney Craig Fansler.
The charges contained in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
CASE NUMBER: 23-cr-00300-CNS
Executive Pastor Sentenced for Stealing Approximately $130,000 from Journey Baptist Church in BarringtonRead the Press Release
CONCORD – A Barrington man was sentenced in federal court for defrauding the church where he worked, Journey Baptist Church in Barrington, out of approximately $130,000, U.S. Attorney Jane E. Young announces.
Gregory Neal of Barrington, age 45, was sentenced by U.S. District Court Judge Samantha Elliott to 18 months in prison and 2 years of supervised release. Neal was also ordered to pay $129,960.13 in restitution to the victims of the fraud, including the church and the insurance company that covered a portion of the losses incurred by the fraudulent activity. On April 12, 2023, Neal pleaded guilty to a one-count information charging him with wire fraud.
“Today, a man who abused his position of trust- as a leader of his church- and stole from his congregation to support his gambling habit has been brought to justice,” United States Attorney Jane Young stated. “Criminals like the defendant who defraud organizations and public institutions in our community will be prosecuted by this office to the full extent of the law.”
Between January 2017 to March 2020, as the Executive Pastor of the Journey Baptist Church, Neal made unauthorized withdrawals of the church’s funds to pay off his gambling debts. He also made unauthorized purchases with the church’s credit cards for his own benefit, including items from various vendors and retail stores. These unauthorized transactions amounted to $129,960.13.
The United States Secret Service led the investigation. Assistant U.S. Attorney Aaron Gingrande prosecuted the case.
###
Ex Funcionario Venezolano Hugo Armando Carvajal Barrios Extraditado A Estados Unidos Acusado Por Narcoterrorismo, Armas Y NarcotráficoRead the Press Release
Damian Williams, Fiscal Federal para el Distrito Sur de Nueva York, y Anne Milgram, Administradora de la Drug Enforcement Administration («DEA») de Estados Unidos, anunciaron que al ex funcionario de gobierno de Venezuela HUGO ARMANDO CARVAJAL BARRIOS, alias «El Pollo», se le extraditó hoy de España a Estados Unidos bajo Acusación Formal, radicada en el Distrito Sur de Nueva York, que le imputa a CARVAJAL BARRIOS concierto para delinquir con actos de narcoterrorismo e importación de cocaína a Estados Unidos, y cargos afines por armas. CARVAJAL BARRIOS comparecerá mañana ante el Juez de Instrucción Stewart D. Aaron. A CARVAJAL BARRIOS lo arrestaron en España el 9 de septiembre de 2021.
El Fiscal Federal Damian Williams declaró: «Después de muchos años de prófugo que le siguieron a una carrera de diez años en el mundo criminal, Hugo Armando Carvajal llegó hoy a Estados Unidos a enfrentar justicia por los crímenes que se alega cometió, los cuales se cometieron con intención de ‘inundar’ Estados Unidos con toneladas de drogas potencialmente mortíferas. Según se alega, Carvajal Barrios explotó su autoridad como director de la agencia de inteligencia militar de Venezuela para corromper instituciones venezolanas, abusar del pueblo venezolano e importar veneno a Estados Unidos. El papel de mando que se le atribuye en el Cártel de Los Soles le infirió angustia y sufrimiento incomensurables a muchos venezolanos, estadounidenses y otros que se vieron afectados por la violencia y actividades de narcotráfico del cártel. Mis encomios para los fiscales de este despacho y nuestros aliados en las agencias del orden público por su incansable labor en este caso importante».
La Administradora de la DEA Anne Milgram declaró: «A los funcionarios corruptos como Carvajal, de quienes se alega que se valen de su puesto para aceptar sobornos e impulsar actividades de narcotráfico, se les debe aplicar toda la fuerza de la ley. Según se alega, Carvajal abandonó su responsabilidad para con el pueblo venezolano y explotó su puesto para beneficio personal. La DEA y nuestros aliados estamos unidos para traer ante la justicia a cualquier persona, irrespectivamente de su puesto, que pone en peligro la seguridad y salud del pueblo de Estados Unidos».
Según los alegatos plasmados en las Acusaciones Formales, otros radicados y declaraciones vertidas durante trámites judiciales:1
A partir de 1999 sino antes, CARVAJAL BARRIOS, ciudadano venezolano y ex director de la agencia de inteligencia militar de Venezuela, llamada la Dirección de Inteligencia Militar («DIM»), junto a otros funcionarios venezolanos de alto rango, obraron en calidad de cabecillas y gerentes del Cártel de Los Soles, nombre que alude a los emblemas del sol que adornan los uniformes de oficiales militares venezolanos de alto rango. CARVAJAL BARRIOS y otros miembros del cártel abusaron del pueblo venezolano y corrompieron las instituciones legítimas de Venezuela — entre ellas sectores del ejército, el aparato de inteligencia, la legislatura y el sistema judicial — para facilitar la importación de toneladas de cocaína a Estados Unidos. El Cártel de Los Soles procuró no solo enriquecer a sus miembros y acrecentarles el poder sino también ‘inundar” Estados Unidos con cocaína para inferirle los efectos dañinos y adictivos a los consumidores en Estados Unidos. Para lograr estas metas, los cabecillas del Cártel de Los Soles se mancomunaron con altos mandos de las Fuerzas Armadas Revolucionarias de Colombia (FARC), que controlaba la producción de cocaína en extensas regiones de Colombia y Venezuela.
CARVAJAL BARRIOS ostentó varios puestos de alta responsabilidad pública en Venezuela que explotó para beneficio del Cártel de Los Soles, incluido el de director de DIM entre 2004 y 2011, aproximadamente. CARVAJAL BARRIOS aprovechó ese puesto para traficar ilegalmente con sustancias narcóticas y proteger a sus socios narcotraficantes, las FARC. En 2006 aproximadamente, por ejemplo, CARVAJAL BARRIOS coordinó con otros miembros del Cártel de Los Soles para enviar una carga de 5,6 toneladas de cocaína desde Venezuela abordo de un jet privado con registro en Estados Unidos. El jet salió de Venezuela y aterrizó en México, donde las autoridades mexicanas se incautaron de las 5,6 toneladas de cocaína en el momento de su llegada. En 2008 aproximadamente, CARVAJAL BARRIOS asistió a una reunión con un representante de las FARC en la cual se acordó que el Cártel de Los Soles le daría efectivo y armas a las FARC a cambio de un alza en la producción de cocaína.
* * *
A CARVAJAL BARRIOS, de 63 años y ciudadano venezolano, se le acusa de: (i) participar en concierto para delinquir con narcoterrorismo, que conlleva sentencia mínima compulsoria de 20 años de prisión y máxima de cadena perpetua; (ii) concierto para delinquir importando cocaína a Estados Unidos, que conlleva sentencia mínima compulsoria de 10 años de prisión y máxima de cadena perpetua; (iii) usar, portar y poseer ametralladoras y artilugios destructivos vinculados al narcoterrorismo y a un concierto para delinquir con la importación de cocaína, que conlleva sentencia mínima compulsoria de 30 años de prisión y máxima de cadena perpetua; y (iv) concierto para delinquir usando, portando y poseyendo ametralladoras y artilugios destructivos vinculados al narcoterrorismo y a un concierto para delinquir con la importación de cocaína, que conlleva sentencia máxima de cadena perpetua.
Las sentencias compulsorias mínimas y máximas en el caso presente están establecidas por el Congreso, y se incluyen aquí para fines informativos únicamente, puesto que la sentencia de todo acusado la determina el juez.
El Sr. Williams elogió los esfuerzos notables de la Unidad de Investigaciones Bilaterales de la División de Operaciones Especiales de la DEA, División de Campo de Miami, y el Despacho de Ultramar Madrid; las investigaciones del Departamento de Seguridad Interior; el Despacho de Control de Activos Extranjeros del Departamento del Tesoro de E.U.A.; la Sección Contraterrorismo, División de Seguridad Nacional del Departamento de Justicia; y la Fiscalía Federal para el Distrito Sur de la Florida. El Despacho de Asuntos Internacionales del Departamento de Justicia y la Embajada de EUA en Madrid trabajaron con aliados de las agencias del orden público en España, incluidas la Policía Nacional de España, el Despacho de la Fiscalía Especial Antidroga de España, el Ministerio de Justicia de España, y el Ministerio del Interior de España, para garantizar el arresto y la extradición de CARVAJAL BARRIOS.
Esta causa judicial está asentada en la Unidad de Seguridad Nacional y Narcotráfico Internacional del ya citado Despacho. Los Fiscales Federales Auxiliares Jason A. Richman, Kaylan E. Lasky y Kyle A. Wirshba llevarán el caso con la asistencia del Abogado Litigador Kevin C. Nunnally de la Sección Contraterrorismo.
Las acusaciones contenidas en las Acusaciones Formales son sencillamente acusaciones, y se presume del acusado que es inocente a no ser, y hasta que, se demuestre que es culpable.
1 Conforme el significado de la frase preliminar, el texto entero de las Acusaciones Formales y descripciones de las mismas aquí contenidas constituyen solamente alegatos, y todo acto descrito debo tratarse como alegato.
U.S. v. Carvajal Barrios Acusaciones FormalesErie Resident Indicted on Sex Trafficking ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of sex trafficking of a child and attempted sex trafficking of a child, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Ali Matthew McCoy, 20, 615 Payne Avenue, 1st Floor, Erie, Pennsylvania, as the sole defendant.
According to the Indictment presented to the court, from May 2022 through July 2022, McCoy is alleged to have sex trafficked and attempted to sex traffic a child.
The law provides for a maximum total sentence of life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Millcreek Police Department conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
- Driver indicted for possession of a machinegun
Downtown Los Angeles ‘SIM Swapper’ Pleads Guilty to Hacking into Instagram Users’ Accounts to Fraudulently Obtain MoneyRead the Press Release
LOS ANGELES – A Downtown Los Angeles man pleaded guilty today to three felony charges, including that he defrauded victims, one of them a social media influencer, by engaging in “SIM swapping” to hijack their Instagram accounts to unlawfully obtain money.
Amir Hossein Golshan, 24, pleaded guilty to one count of unauthorized access to a protected computer to obtain information, one count of wire fraud, and one count of accessing a computer to defraud and obtain value.
Golshan has been in federal custody since last month after he was found to have violated the terms of his pretrial release.
According to his plea agreement, from at least April 2019 to February 2023, Golshan knowingly executed multiple online schemes to defraud hundreds of victims through various online scams and unauthorized intrusions into victims’ digital accounts, including social media account takeovers, Zelle payment fraud, and impersonating Apple support. In total, Golshan’s entire scheme caused approximately $740,000 in losses to hundreds of victims over several years.
SIM swapping and social media account takeovers
“SIM swapping” is the process of fraudulently inducing a carrier to reassign a cell phone number from the legitimate subscriber’s SIM card to a SIM card controlled by another without the legitimate subscriber’s authorization. This allows the fraudster to take control of the victim’s various accounts through two-step authentication text messages sent to a victim’s cell phone.
Golshan’s SIM swapping and social media account takeovers targeted both the account owners and their online friends, duping them into sending him money.
For example, in December 2021, a Los Angeles-based model and influencer with more than 100,000 followers on social media, received a direct message on Instagram from her friend’s account, stating, “Can you do me a favor? What’s your number?” The victim provided her phone number to the person whom she believed was her friend, but who really was Golshan.
Golshan then logged into the victim’s Instagram account without authorization, impersonated the victim to her friends, and requested the victim’s friends send him money through Zelle, PayPal, and other online payment platforms. Several of the victim’s friends sent Golshan money, totaling thousands of dollars, believing they were sending money to the victim.
During the time that Golshan locked the victim out of her accounts, he sent her messages demanding $2,000 for the return of her accounts and threatening to delete her accounts if she did not pay him.
Golshan further admitted to SIM swapping two additional victims in January 2022. For one of these victims, Golshan fraudulently caused the victim’s cell phone number to be SIM swapped to a new cell phone that he controlled. Golshan then reset the passwords to the victim’s social media accounts which allowed him to gain access to the victim’s accounts. He then accessed the victim’s social media accounts – which had her personal photos and videos saved on them. Golshan contacted the victim and demanded that she pay him $5,000 or else he would post her personal videos online.
Zelle merchant fraud
Golshan also fraudulently advertised fake and non-existent Instagram services to individual victims for several hundred dollars each. In August 2019, for example, Golshan falsely represented on Instagram that he could provide a verified Instagram badge for one victim’s teenage daughter in exchange for $300. Golshan knew this statement was false and that only Instagram could provide such a badge. Nevertheless, Golshan induced the victim to send an electronic payment of $300 to him, which he deposited in his bank account.
During Golshan’s SIM swapping and Zelle fraud schemes, Golshan fraudulently received approximately $82,000 in payments from approximately 500 victims, usually in increments of $300 to $500 per victim.
Apple Support fraud and NFT/cryptocurrency theft
Golshan also started to impersonate Apple Support personnel to gain unauthorized access to several victims’ Apple iCloud accounts to steal NFTs, cryptocurrency, and other valuable digital property. Through this conduct, Golshan defrauded five victims of amounts between $2,000 and $389,000 each.
For example, in August 2022, Golshan called a victim from Apple Support’s official telephone number and pretended to be an Apple Support employee. Golshan told the victim that Apple Support wanted to give the victim an advanced security protocol to protect the victim’s iCloud account. Golshan then caused a two-step authentication code to be sent to the victim’s phone.
Through these misrepresentations, Golshan fraudulently induced the victim to tell him this six-digit security code, which allowed Golshan to gain access to the victim’s iCloud account. Golshan then changed the email address on the victim’s iCloud account to an email address that he controlled. Golshan then stole valuable digital property from the victim, including an NFT valued at approximately $319,000 and approximately $70,000 worth of cryptocurrency. Later that same day, defendant sold the stolen NFT for $130,000 in cryptocurrency on a NFT marketplace.
United States District Judge Otis D. Wright II scheduled a November 27 sentencing hearing, at which time Golshan will face a statutory maximum sentence of 20 years in federal prison for the wire fraud count, and up to five years in federal prison for each of the computer access counts.
The FBI investigated this matter.
Assistant United States Attorney Andrew M. Roach of the Cyber and Intellectual Property Crimes Section is prosecuting this case.
Derby Man Charged with Distributing MethRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ANDRE MESSAM, 46, of Derby, was arrested today on a federal criminal complaint charging him with possession with intent to distribute, and distribution of, 50 grams or more of methamphetamine.
As alleged in the complaint, on May 10, 2023, the FBI’s Transnational Organized Crime Task Force conducted a controlled purchase of approximately 55 grams of methamphetamine from Messam. Laboratory analysis of the methamphetamine determined that it was 100 percent pure.
This morning, Messam fled from law enforcement officers who attempted to stop his car in North Haven. He was located and arrested at a rental car agency on the Berlin Turnpike in Newington. Messam possessed approximately $7,200 in cash at the time of his arrest.
Following his arrest, Messam appeared before U.S. Magistrate Judge Maria E. Garcia in New Haven and was ordered detained.
If convicted of the charge in the complaint, Messam faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Avery stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the FBI’s Transnational Organized Crime Task Force, which includes members from the Internal Revenue Service – Criminal Investigation Division, and the Brookfield and New Milford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
Dark Web Drug Trafficker Pleads Guilty to Charges Arising out of a Clandestine Drug Lab in a Detroit ResidenceRead the Press Release
DETROIT – Carolyn Hernandez-Taylor pleaded guilty today to conspiring to distribute millions of illicit and counterfeit pills, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Special Agent in Charge Angie M. Salazar, Homeland Security Investigations (HSI), Detroit, and Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Field Division.
Carolyn Hernandez-Taylor, 29, of Detroit, admitted her involvement in a conspiracy to distribute illicit substances, a conspiracy to launder monetary instruments, and distribution of counterfeit pills before United States District Judge Linda V. Parker.
According to court records, investigators identified a dark web marketplace that went by the name “opiateconnect.” Over a months-long investigation, investigators worked to locate the distribution hub for illicit drugs including cocaine and counterfeit drugs. The counterfeit drugs, made to look like alprazolam, were in fact uncontrolled research chemicals not scheduled for human consumption.
Investigators determined that “opiateconnect” was operated from a residence in Detroit, Michigan. A subsequent search warrant revealed a clandestine drug lab. The search resulted in the seizure of approximately $1,000,000 in cryptocurrency, more than $300,000 in U.S. currency, multiple firearms, an industrial size pill press, industrial mixer, and controlled substances including cocaine and counterfeit drugs.
Hernandez-Taylor pleaded guilty pursuant to a plea agreement to three counts: (1) conspiracy to possess with intent to distribute a controlled substance, which carries a statutory mandatory minimum sentence of 5 years and a maximum of 40 years; (2) conspiracy to launder monetary instruments, which carries a maximum sentence of 20 years; and (3) dispensing a counterfeit drug, which carries a maximum sentence of 10 years.
“Counterfeit pills pose a unique danger to this community, especially ones that have the appearance of a drug that is so regularly prescribed, stated U.S. Attorney Dawn Ison. “We will continue to investigate and aggressively prosecute instances where those counterfeit pills are manufactured illegally and distributed in our district to keep our community safe.”
“Drug traffickers will go to any length to sell their poison,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “As their efforts evolve so do ours. The best way that we as law enforcement professionals can continue to dismantle drug trafficking organizations is by working together at the federal, state and local level. I’m incredibly proud of the work of our HSI agents, partners and all the members of the Detroit Dark Web Task Force for their commitment to bring offenders to justice.”
“The DEA, in collaboration with HSI, continues our commitment to safeguard communities from individuals who sell fake pills and other illicit substances. This case proves that there is no place to hide in the dark web when it comes to law enforcement’s efforts to protect the people we serve,” said Special Agent in Charge Greene.
The investigation was conducted by the Detroit Dark Web Task Force, which consists of HSI, Postal Inspection Service Office of the Inspector General (USPIS-OIG), Secret Service (USSS), Internal Revenue Service-Criminal Investigation (IRS-CI), Michigan State Police (MSP), and Customs and Border Protection (CBP). The task force investigates criminal organizations, including drug vendors, that operate within dark web marketplaces. The task force has disrupted and dismantled numerous drug trafficking organizations through criminal arrests and the seizure of proceeds from criminal activity.
This case is being prosecuted by Assistant U.S. Attorneys Robert Jerome White and John N. O’Brien.
Convicted Ponzi Schemer, Four Other Men, Charged with Multimillion-Dollar Fraud Scheme and Obstructing JusticeRead the Press Release
NEWARK, N.J. – A New Jersey man whose 24-year federal prison sentence was commuted after being twice convicted of defrauding investors of a total of $230 million was charged today with four other men for committing additional crimes, including conspiring to defraud investors of more than $35 million, and with conspiracy to obstruct justice, U.S. Attorney Philip R. Sellinger announced.
A criminal complaint was unsealed today charging each of the five defendants with one count of wire fraud conspiracy and one count of conspiracy to obstruct justice. The defendants are: Eliyahu “Eli” Weinstein, aka Mike Konig, 48, Aryeh “Ari” Bromberg, 49, and Joel Wittels, 57, all of Lakewood, New Jersey, along with Shlomo Erez, 55, a citizen and resident of Israel, and Alaa Hattab, 34, of Otttowa, Canada. The three defendants who were arrested are scheduled to make their initial appearances today before U.S. Magistrate Judge Tonianne Bongiovanni in Trenton federal court; Wittels and Hattab remain at large.
U.S. Attorney Philip R. Sellinger“As alleged in the complaint, Weinstein, along with four other individuals, has once again perpetrated a sophisticated fraud scheme causing losses of millions of dollars. He did so by using a fake name and falsely promising access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine. These were brazen and sophisticated crimes that involved multiple conspirators and drew right from Weinstein’s playbook of fraud. No matter how many times someone attempts to prey on innocent investors, my office will dedicate whatever resources are necessary to root out and punish fraudsters.”
“We allege Mr. Weinstein took part in a new scheme to rip off investors by hiding his real identity,” Special in Charge James E. Dennehy of the Newark FBI said. “He was aware his actions were against the terms of his release on a previous investment fraud conviction, and we allege he engaged in criminal activity anyway. I want to commend everyone who worked on this investigation. Cases like this can be tedious, and at times very frustrating, but the investigative team does the work to prevent more people from being victimized and to ensure career criminals face the justice they deserve."
According to documents filed in this case and statements made in court:
Weinstein was convicted two times in New Jersey federal court for defrauding investors. His first case involved a real estate Ponzi scheme, and his second case stemmed from additional fraud Weinstein committed while on pretrial release. For these crimes, which resulted in combined losses to investors of approximately $230 million, Weinstein was sentenced to serve 24 years in prison, followed by three years of supervised release. On Jan. 19, 2021, after Weinstein had served less than eight years, the President of the United States at that time commuted Weinstein’s term to time served, leaving intact the rest of his sentence.
Soon after being released from prison, Weinstein began orchestrating a new scheme to solicit money from investors through a company called Optimus Investments Inc. (Optimus). Using the fake name “Mike Konig,” Weinstein ran Optimus with Bromberg and Wittels. They kept Weinstein’s true name and identity hidden because, as Weinstein acknowledged in a secretly recorded conversation, investors wouldn’t give them “a penny” if they learned of Weinstein’s involvement.
Weinstein, Bromberg, and Wittels received the bulk of investor money through a second company, Tryon Management Group LLC, which was owned and controlled by two other conspirators. Tryon promised these individual investors – consisting mostly of friends and family – lucrative opportunities to invest in deals involving COVID-19 masks, scarce baby formula, and first-aid kits supposedly bound for wartime Ukraine. Posing as Mike Konig, Weinstein provided the information for these supposed deals. Based on that information, investors gave money to Tryon, believing the deals were legitimate and not knowing about Weinstein’s involvement. In turn, Tryon transferred those funds to Weinstein, through Optimus.
In February 2022, almost immediately after Tryon and Optimus started receiving investor money, Tryon was unable to pay its investors. Rather than reveal this information to investors, Weinstein, Bromberg, and Wittels agreed with Tryon’s owners to pool money from existing investors of both Optimus and Tryon and use it to make monthly payments to other investors in a Ponzi-like fashion. Bromberg, Wittels, and the Tryon owners concealed this arrangement from investors by falsely telling investors that the payments derived from legitimate investment returns, not other investors’ money.
In late August 2022, Weinstein revealed his true identity to the Tryon owners, admitting in a secretly recorded meeting, “I am Eli Weinstein.” In another recorded August 2022 meeting, Weinstein admitted to misappropriating Tryon investor money and making various false statements about the purported Optimus deals. Weinstein acknowledged that he was conducting a Ponzi scheme, stating, “I finagled, and Ponzied, and lied to people to cover us.”
Erez claimed to be Weinstein’s attorney and helped conceal Weinstein’s true identity by, among other things, receiving and managing money on Weinstein’s behalf.. Hattab served as a broker for Optimus and helped conceal Weinstein’s involvement from investors and his business activities from the United States Probation Office.
Once the Tryon owners learned that Mike Konig was actually Weinstein, they agreed with the defendants to continue concealing Weinstein’s identity from investors and to raise additional money to pay off existing Tryon investors, all in an effort to stop the Ponzi scheme from falling apart and to cover up the fraud.
In addition to defrauding investors, the defendants also conspired to obstruct justice. They helped hide Weinstein’s assets that should have been used to pay over $200 million in restitution that he still owes his previous victims. The defendants also concealed Weinstein’s myriad business activities, which he was required to disclose to the court and which were expressly prohibited by the terms of his supervised release. In multiple secretly recorded conversations, Weinstein discussed his intent to conceal his various assets from the government. In one such conversation, Weinstein referenced hidden assets that he “can’t touch” while on supervised release because he’d otherwise “go to jail.” Weinstein then boasted, “I just told you something that no one in the world knows because I hid money. Get it?”
The wire fraud conspiracy charge is punishable by a maximum of 20 years in prison. The obstruction conspiracy charge is punishable by a maximum of five years in prison. Each count is also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Weinstein, Bromberg, Wittels, Hattab, and two other individuals based on the same and additional conduct.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy, with the investigation leading to the charges in this case. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Antonia Apps, Director of the SEC’s New York Regional Office.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Emma Spiro of the Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
weinstein_et_al_revised_remarks.pdf weinsteinetal.complaint.pdfConvicted Felon on Federal Supervised Release Is Sentenced to Prison for Illegal Gun PossessionRead the Press Release
CHARLOTTE, N.C. – Jermaine Whitaker, 44, of Charlotte, was sentenced today to 92 months in prison followed by three years of supervised release for illegal possession of a firearm, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to court documents and today’s court proceedings, in 2015, Whitaker was convicted of drug and firearm offenses in the Western District of North Carolina and was ordered to serve 84 months in prison followed by a term of supervised release. In June 2021, CMPD officers executed an arrest warrant for the defendant for violating the terms of his supervised release. While executing the arrest warrant at a residence in Charlotte, CMPD officers located a loaded firearm and ammunition. Law enforcement determined that the firearm belonged to Whitaker and was reported stolen. Court records show that Whitaker paid $80 to purchase the firearm.
In announcing today’s sentence U.S. Attorney King said, “Whitaker violated federal gun laws that prohibit convicted felons from possessing firearms. He further broke the law by obtaining a stolen gun from an illegal source. We will continue to work with our law enforcement partners to remove illegal firearms from our communities and hold illegal gun possessors accountable for their actions,” said U.S. Attorney King.
“Possession of a firearm by a felon is illegal and jeopardizes the safety of the community,” said Special Agent in Charge Mims. “Recovering stolen firearms and keeping guns out of the hands of prohibited individuals plays an important role in reducing violent crime and better protecting our neighborhoods.”
On June 24, 2022, Whitaker pleaded guilty to possession of firearm by a convicted felon. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.
Assistant United States Attorney Christopher Hess, of the U.S. Attorney’s Office in Asheville, 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.
Cleveland Man Found Guilty of Drug Trafficking and Firearms PossessionRead the Press Release
CLEVELAND – William Sims, 45, of Cleveland, Ohio, was found guilty on Monday of all seven drug trafficking and firearms charges against him after a five-day trial by jury before U.S. District Court Judge Dan Aaron Polster. The charges included possession with the intent to distribute methamphetamine, crack, fentanyl, fluorofentanyl, cocaine, and heroin, as well as being a felon in possession of firearms and ammunition and possession of firearms in furtherance of a drug trafficking crime.
According to court documents and testimony, on November 26, 2021, after completing controlled purchases of crack cocaine from William Sims during the prior week, Cleveland Police detectives executed a search warrant on Sims’ home. During the search, detectives found Sims in possession of approximately 154.5 grams of methamphetamine, approximately 124.51 grams of crack cocaine, approximately 78.59 grams of fluorofentanyl and fentanyl, as well as numerous mixtures containing other narcotics like cocaine and heroin. The majority of the drugs were found in Sims’ bedroom, in close proximity with two loaded firearms and ammunition found under Sims’ bed.
Sims is prohibited from possessing firearms due to prior felony convictions.Sentencing is scheduled for November 2, 2023. Sims faces a mandatory minimum sentence of ten years in prison, although his sentence will be determined by many factors and may be higher than the mandatory minimum. The judge will determine the appropriate sentence after considering the sentencing guidelines and other factors.
This case was investigated by the Cleveland Police Department, and First District Detective Ryan McNamara and was prosecuted by Assistant U.S. Attorneys Payum Doroodian and Alejandro Abreu.
Chinese National Real Estate Developer Appears in Court to Face Charges of Bribing A Prominent San Francisco Public OfficialRead the Press Release
SAN FRANCISCO - Zhang Li, founder and chief executive officer of a Chinese real estate development company appeared last night in U.S. District Court on charges that he bribed former head of the San Francisco Department of Public Works Mohammed Nuru, announced First Assistant United States Attorney Patrick Robbins, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, and Internal Revenue Service-Criminal Investigation Special Agent in Charge Darren Lian. A U.S. company that Zhang controls, Z&L Properties, Inc., was also charged with honest services wire fraud for providing bribes and gifts to Nuru in exchange for favorable city treatment of Z&L Properties’ mixed-use project at 555 Fulton Street in San Francisco, Calif. As part of a negotiated disposition both Zhang and Z&L Properties will waive the right to indictment and admit that they engaged in certain conduct.
Zhang, 70, of Guangzhou, China, has been charged by Information with one count of conspiracy to commit honest services fraud. According to the Information, Zhang bribed Nuru by providing him with food, drinks, luxury lodging, and transportation during a trip Nuru took to China in 2018. The Information alleges the purpose of the bribe was to influence Nuru so that he would provide favorable treatment on decisions and city approvals needed during the construction and development of a mixed-use property at 555 Fulton Street in San Francisco being developed by Zhang and a company Zhang controlled.
Z&L Properties Inc., a U.S. company formerly based in Fremont, Calif., and controlled by Zhang, was also charged in a separate Information with conspiracy to commit honest services fraud and honest services wire fraud for its participation in the bribery scheme. Z&L Properties managed the development of the 555 Fulton Street project and the company facilitated the payment of bribes to Nuru in exchange for favorable treatment regarding the 555 Fulton project, according to the allegations in the criminal Information.
“Zhang Li and Z&L Properties have admitted that they bribed a top San Francisco public official. The criminal charges and resolutions announced today send a clear message that this office will not tolerate the corruption of public officials in the District by anyone, including individuals acting from outside of the United States,” said First Assistant U.S. Attorney Patrick Robbins. “To those who seek to corrupt public officials in the United States, wherever they are, we will use the powers at our disposal to bring them to justice and hold them accountable to the rule of law.”
“Zhang Li, who earned his profits through bribery of a San Francisco public official, is yet another individual charged in connection to our ongoing public corruption case,” said FBI Special Agent in Charge Robert Tripp. “Public corruption erodes public confidence and strikes at the very foundation of our government. The citizens of San Francisco deserve better, and we stand firmly committed to investigating both corrupt officials and private citizens who attempt to bribe them, no matter where they reside.”
“IRS-Criminal Investigation’s priority is to ensure a fair and level playing field for all taxpayers,” said Special Agent in Charge Darren Lian of the Oakland Field Office. “Mr. Li’s conduct shows that greed and financial crimes have no borders, and we will continue to pursue those who take advantage of our system and taxpayers by following the money worldwide. We are proud to have worked alongside our federal law enforcement partners and the U.S. Attorney’s Office in bringing this case a step closer to closure.”
Zhang originally was charged by criminal complaint in May of 2021. At the request of the United States, Zhang was arrested when he arrived in the United Kingdom in December 2022 and the United States pursued extradition. After approximately six months, Zhang consented to extradition and was subsequently surrendered to U.S. authorities. The charges against Zhang now are set forth in an Information filed by the government.
Zhang appeared yesterday before U.S. Magistrate Judge Alex Tse in the Northern District of California. Magistrate Judge Tse released Zhang on a bond pending further proceedings.
According to the documents filed in Zhang’s case, the defendant and the U.S. Attorney’s Office have entered a deferred prosecution agreement. Under that agreement filed today, Zhang admitted to the conduct that forms the basis of the charge in the Information, and, if Zhang abides by the terms of the deferred prosecution agreement, the charge will be dismissed in three years.
According to filed documents, Z&L Properties also will plead guilty to charges set out in the Information filed against it; Z&L also will agree to a comprehensive compliance and remediation program designed to prevent bribery and corruption in connection with Z&L Properties’ real estate development work. Z&L Properties has agreed to plead guilty to one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, will pay a fine of $1,000,000, and will enter into a corporate compliance program acceptable to the Office of the U.S. Attorney. Z&L Properties appeared before U.S. Magistrate Judge Alex Tse today, and the court set a further hearing before U.S. District Judge William H. Orrick, on August 10, 2023, at 1:30 p.m.
The charges against Zhang and Z&L Properties arose from an investigation into bribery and public corruption in San Francisco city government led by the U.S. Attorney’s Office, the FBI, and IRS-CI. To date, more than 14 individuals and entities have been charged in connection that larger set of investigations, including Mohammed Nuru, former director of the San Francisco Public Works department; Harlan Kelly, the former general manager of the San Francisco Public Utilities Commission; and multiple city contractors and other facilitators of bribes and corruption.
Nuru was charged in January 2020, pleaded guilty in January 2022, and on August 25, 2022, Nuru was sentenced to 84 months in federal prison. A separate defendant charged in the investigation, Walter Wong, was charged in June 2020 with conspiracy to defraud the public of its right to honest services and with conspiracy to engage in money laundering, both involving Nuru. Wong entered a guilty plea and agreed to cooperate with the government’s San Francisco City Hall corruption investigation.
An Information merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant Zhang faces a maximum sentence of 20 years imprisonment, a maximum fine of $250,000, plus restitution if appropriate. Z&L Properties faces a maximum fine of $500,000 per count, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. Assistant U.S. Attorneys David Ward and Robert Leach are prosecuting the case. The prosecution is the result of an investigation by the FBI and the Internal Revenue Service-Criminal Investigations (IRS-CI). First Assistant U.S. Attorney Patrick Robbins thanked the Department of Justice’s Office of International Affairs and United Kingdom authorities for their assistance in the extradition.
2023-07-18_information_zhang_li.pdf 2023-07-18_information_zl_properties.pdfCharlotte Business Owner and Disaster Relief Loan “Consultant” Is Indicted for $1.2 Million COVID-19 Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – A federal grand jury in Charlotte has returned a criminal indictment charging Glynn Paul Hubbard, Jr., 45, of Charlotte, with wire fraud and money laundering, for allegedly obtaining more than $1.2 million in fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loans for himself and his customers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Karen Wingerd, Acting Special Agent in Charge of IRS Criminal Investigation (IRS CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, from March 31, 2020, to August 1, 2020, Hubbard, Jr. submitted fraudulent PPP loan and EIDL applications to the U.S. Small Business Administration (SBA) and SBA-approved lenders, seeking to obtain relief funds for his businesses, Borrow My Ride, Balanced Society Corporation, The Regins Corporation, and GGGAB, Inc. To obtain the relief funds, the indictment alleges that Hubbard, Jr. falsified information in loan applications and supporting documentation, and provided false financial information, fake employment data, and fraudulent tax returns for his businesses. As a result of the scheme, the indictment alleges that Hubbard, Jr. received more than $570,000 in fraudulently obtained relief funds.
The indictment further alleges that Hubbard, Jr. also executed the scheme by submitting false and fraudulent applications for PPP and EIDL funds on behalf of customers, causing more than $660,000 in relief funds to be disbursed to his customers. Hubbard, Jr. allegedly promoted the fraudulent scheme through personal referrals and in social media posts where he advertised that he was a PPP loan/EIDL consultant. Over the course of the scheme, Hubbard, Jr. allegedly received improper loan preparer fees for his services totaling more than $150,000, and, to avoid detection, he allegedly required customers to pay the loan preparation fees in cash, via cashier’s checks, or wire transfers.
“Safeguarding taxpayer dollars and protecting disaster relief programs from fraud is a priority for my office,” said U.S. Attorney King. “Federal prosecutors are working side-by-side with investigators dedicated to identifying pandemic-related schemes and holding accountable individuals who sought to exploit COVID-19 economic relief programs put in place to help small businesses in a time of grave need.”
“During the pandemic, the defendant allegedly took advantage of a program intended to provide critical relief for businesses impacted by the COVID-19 outbreak,” said Acting Special Agent in Charge Wingerd. “IRS Cl is committed to bringing to justice to those who have exploited the pandemic for personal gain and have stolen from America’s taxpayers.”
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The wire fraud charge carries a maximum prison sentence of 20 years and a $250,000 fine. The maximum statutory penalty for the money laundering offense is 10 years in prison and a $2500,000 fine.
In making today’s announcement, U.S. Attorney King credited IRS CI for the investigation which led to the charges.
Assistant U.S. Attorneys Caryn Finley and Cassye Cole with the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
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 U.S. Attorneys’ Offices and 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 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 www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Career Offender Is Sentenced to 12+ Years on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Allen Shunte Plowden, 38, of Charlotte, to 151 months in prison followed by six years of supervised release for cocaine distribution and illegal firearm possession, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to filed documents and court proceedings, in May 2020, law enforcement initiated an investigation into Plowden, after receiving information that the defendant was distributing narcotics in the Charlotte area. On September 27, 2020, law enforcement executed a search warrant at Plowden’s residence, seizing cocaine, drug paraphernalia, digital scales, and other items consistent with drug distribution. Law enforcement also seized $40,000 in drug proceeds and 16 illegal firearms, some of which had been reported stolen.
On October 25, 2021, Plowden pleaded guilty to possession with intent to distribute cocaine and possession of a firearm by a convicted felon. At today’s court hearing, Plowden’s sentence was enhanced due to his classification as a “Career Offender” based on multiple prior convictions, including Robbery and Distribution/Manufacture of Cocaine Base and Distribution of a Controlled Substance Near a School.
In making today’s announcement, U.S. Attorney King commended HSI and CMPD for their investigation of the case.
Assistant United States Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville 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.
Businessman Sentenced for Bribery Scheme and Tax EvasionRead the Press Release
The former executive vice president of an Atlanta engineering firm was sentenced today to five years in prison for paying bribes to two City of Atlanta officials in exchange for steering city business worth millions of dollars to his company, paying bribes to a former DeKalb County, Georgia, official in an attempt to obtain county contracts, and evading over $1.5 million in taxes.
According to court documents, Lohrasb “Jeff” Jafari, 72, of Alpharetta, Georgia, was the executive vice president of PRAD Group, an architectural, design, and construction management firm headquartered in Atlanta that performed services for the City of Atlanta and DeKalb County. Jafari also oversaw PRAD Group’s finances. From January 2003 to February 2017, Adam Smith served as the chief procurement officer (CPO) for the City of Atlanta and supervised the city’s purchasing activities and its expenditure of billions of dollars of public money. From April 2011 to May 2016, Jo Ann Macrina served as the City of Atlanta’s Commissioner of the Department of Watershed Management, a cabinet-level position from which she managed the city’s drinking water and wastewater systems and was responsible for an annual budget exceeding $500 million.
Jafari gave Smith and Macrina cash and other items of value to obtain business with the City of Atlanta. In exchange for those payments, Smith and Macrina conspired with Jafari to ensure that PRAD Group received city business worth millions of dollars, including by agreeing to replace two evaluators on the selection team for the city’s Architectural and Engineering contract and re-scoring an evaluation so that the city would award the contract to Jafari’s company.
During Smith’s tenure as the CPO, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group and joint venture projects of which PRAD Group was a partner. For years, Jafari met privately with Smith on multiple occasions, frequently at local restaurants. During these meetings, Jafari and Smith discussed City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Jafari was actively seeking additional work and assistance with ongoing city projects. Jafari paid Smith $1,000 in cash in the bathroom of the restaurant after most of the meetings. In return for these bribe payments, Jafari expected Smith to use his position and power to assist Jafari with contracting and procurement with the City of Atlanta. From at least 2014 to January 2017, Jafari paid Smith more than $40,000 in cash with the intent to influence Smith in his role as the city’s CPO.
In February 2017, Jafari became aware of the federal investigation into his bribe payments to Smith and confronted Smith at Atlanta City Hall. Jafari insisted that Smith lie to the FBI by denying that Smith took bribe money from him.
From at least 2013 through May 2016, Macrina met with Jafari to discuss City of Atlanta procurement projects, bids, and solicitations. Often when they met, Jafari was actively seeking contracts, projects, and work with the City of Atlanta. To obtain city work, Jafari promised Macrina a lucrative job with PRAD Group and, directly or through a PRAD Group employee, gave Macrina $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, a luxury shopping trip in Dubai, and landscaping work at her home. Shortly after the City of Atlanta fired her, Macrina began working for Jafari and PRAD Group. Between June and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments.
In April and August 2014, the FBI conducted two undercover operations using a confidential source. During two secretly recorded meetings, the confidential source met with Jafari at local restaurants, where Jafari sought assistance from the source to obtain work in DeKalb County. After the meetings, Jafari directed the source to the bathroom of the restaurants where Jafari made cash payments of $1,000 and $1,500.
In addition, from 2014 to 2016, Jafari neither filed personal tax returns, nor paid any income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and used money from the PRAD Group’s corporate accounts to pay for various personal expenses, including several luxury vehicles. Jafari evaded the payment of at least $1.5 million in taxes.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Acting Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office made the announcement.
The FBI Atlanta Field Office and IRS-CI investigated the case.
Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section, Trial Attorney Todd Ellinwood of the Justice Department’s Tax Division, and Assistant U.S. Attorneys Jeffrey W. Davis and Nathan P. Kitchens for the Northern District of Georgia prosecuted the case.
Businessman Jeff Jafari sentenced to five years in federal prison for bribing City of Atlanta and DeKalb County officials to obtain contractsRead the Press Release
ATLANTA - Lohrasb “Jeff” Jafari, the former Executive Vice President of Atlanta engineering firm, PRAD Group, Inc., has been sentenced for paying bribes to two City of Atlanta officials in exchange for steering city business worth millions of dollars to his company, paying bribes to a former DeKalb County, Georgia, official in an attempt to obtain county contracts, and evading over $1.5 million in taxes.
“Jeff Jafari paid bribe after bribe to high-ranking government officials in the City of Atlanta and DeKalb County over several years and thereby obtained lucrative city contracts worth tens of millions of dollars,” said U.S. Attorney Ryan K. Buchanan. “The public paid a heavy price from every project unfairly awarded to Jafari’s companies through corruption, and he then compounded his harm by never paying any tax on his substantial personal income. His greed delivered a hard blow to public trust in honest and fair government, but this sentence underscores our commitment to prosecuting corruption in any form.”
"Circumventing the process to hire contractors for the city by accepting bribes to profit personally is one of the highest forms of public corruption," said Keri Farley, Special Agent in Charge of FBI Atlanta. "As this sentencing shows, the FBI and the City of Atlanta will not tolerate anyone who takes advantage of city funds and abuses their position of trust.”
“Residents expect fair and open competition for city contracts,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “City officials who accept bribes undermine the contracting process and diminish trust in the government. IRS Criminal Investigation and our partners will continue investigating and holding those accountable who take the public trust for granted to enrich themselves.”
According to the charges and other information presented in court: From 1984 to 2018, PRAD Group was an architectural, design, and construction management firm headquartered in Atlanta, Georgia, that performed services for the City of Atlanta and DeKalb County, Georgia. Jafari served as PRAD Group’s Executive Vice President and oversaw PRAD Group’s finances.
From January 2003 to February 2017, Adam Smith served as the Chief Procurement Officer (CPO) for the City of Atlanta and supervised the city’s purchasing activities and its expenditure of billions of dollars of public money. From April 2011 to May 2016, Jo Ann Macrina served as the City of Atlanta’s Commissioner of the Department of Watershed Management, a cabinet-level position from which she managed the City’s drinking water and wastewater systems and was responsible for an annual budget exceeding $500 million.
Jafari gave Smith and Macrina cash and other items of value to obtain business with the City of Atlanta. In exchange for those payments, Smith and Macrina conspired with Jafari to ensure that PRAD Group received city business worth millions of dollars, including by agreeing to replace two evaluators on the selection team for the city’s Architectural and Engineering contract and to re-score an evaluation so that Jafari’s company would be awarded a contract.
During Smith’s tenure as the CPO, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group and joint venture projects of which PRAD Group was a partner. For years, Jafari met privately with Smith on multiple occasions, frequently at local restaurants. During these meetings, Jafari and Smith discussed City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings Jafari was actively seeking additional work and/or assistance with ongoing city projects. Jafari paid Smith $1,000 in cash in the bathroom of the restaurant after most of the meetings. In return for these bribe payments, Jafari expected Smith to use his position and power to assist Jafari with contracting and procurement with the City of Atlanta. From at least 2014 to January 2017, Jafari paid Smith more than $40,000 in cash with the intent to influence Smith in his role as the city’s CPO.
In February 2017, Jafari became aware of the federal investigation into his bribe payments to Smith and confronted Smith at Atlanta City Hall. Jafari insisted that Smith lie to the FBI by denying that Smith took bribe money from him.
From at least 2013 through May 2016, Macrina met with Jafari to discuss City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Jafari was actively seeking contracts, projects, and work with the City of Atlanta. To obtain city work, Jafari promised Macrina a lucrative job with PRAD Group and, directly or through a PRAD Group employee, gave Macrina $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, a luxury shopping trip in Dubai, and landscaping work at her home. Shortly after the City of Atlanta fired her, Macrina began working for Jafari and PRAD Group. Between June and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments.
On April 8 and August 21, 2014, the FBI conducted two undercover operations using a confidential source (who at the time, was a high-ranking DeKalb County official). During two surreptitiously recorded meetings, the confidential source met with Jafari at local restaurants, where Jafari sought assistance from the confidential source to obtain work in DeKalb County. After the meetings, Jafari directed the confidential source to the bathroom of the restaurants where Jafari paid the confidential source cash payments of $1,000 and $1,500.
From 2014 to 2016, Jafari neither filed personal tax returns, nor paid any income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and used money from the PRAD Group’s corporate accounts to pay for various personal expenses, including several luxury vehicles. Jafari evaded the payment of at least $1.5 million in taxes.
Lohrasb “Jeff” Jafari, 72, of Alpharetta, Georgia, was sentenced before U.S. District Judge Steve C. Jones to five years in prison, three years supervised release, a $300 special assessment, and $909,674 in restitution. In April 2023, Jafari pleaded guilty to one count each of conspiratorial bribery, substantive bribery, and tax evasion.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated the case.
Assistant U.S. Attorneys Jeffrey W. Davis and Nathan P. Kitchens, Trial Attorney Jolee Porter of the Justice Department’s Public Integrity Section, and Trial Attorney Todd Ellinwood of the Justice Department’s Tax Division prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Browning man charged with first degree murder, sexual abuse in death of woman on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man suspected in the death of a woman on the Blackfeet Indian Reservation appeared on July 18 on murder and sexual abuse charges, U.S. Attorney Jesse Laslovich said today.
Paul Andrew Vielle, 58, pleaded not guilty to an indictment charging him with first degree felony murder, second degree murder and aggravated sexual abuse. Vielle faces a mandatory term of life imprisonment and a $250,000 fine if convicted of first degree felony murder.
U.S. Magistrate Judge John T. Johnston presided. Vielle was detained pending further proceedings.
The indictment alleges that on April 22, near Cut Bank John Coulee, in the Meriwether area on the Blackfeet Indian Reservation, Vielle killed the victim, identified as Jane Doe, by cold exposure and that he engaged in a sexual act by force against Jane Doe.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case. The Bureau of Indian Affairs, FBI, Blackfeet Law Enforcement Services, Glacier County Sheriff’s Office and Montana Highway Patrol conducted the investigation.
An indictment is merely an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
PACER case reference. 23-67.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl
XXX
Brookline Man Pleads Guilty to Possessing Machine GunsRead the Press Release
BOSTON – A Brookline man pleaded guilty in federal court today to illegally possessing two machine guns.
Stewart Silvestri, 24, pleaded guilty to one count of unlawful possession of machine guns. U.S. District Court Judge Denise J. Casper scheduled sentencing for Oct. 12, 2023. Silvestri was charged by criminal complaint on Nov. 16, 2022.
On Oct. 15, 2022, law enforcement responded to multiple calls for an erratic driver on Route 95 in Rowley, Mass., who had pulled into a weigh station. Upon arriving at the weigh station, law enforcement approached the driver – Silvestri – who stated he had just come from an armory in New Hampshire. While asking for his license and registration, law enforcement observed Silvestri sitting on what appeared to be firearms. A subsequent search of the vehicle recovered 14 privately made firearms (also known as ghost guns), hundreds of rounds of ammunition and numerous firearm parts. Two of the firearms were fully automatic pistols, classified as machine guns.
The charging statute provides for a sentence of up to 10 years in prison, 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; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Essex County District Attorney Paul F. Tucker made the announcement today. Assistant U.S. Attorney Philip C. Cheng of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Bozeman man charged with interfering with flight crew, abusive sexual contact on aircraftRead the Press Release
MISSOULA — A Bozeman man who is accused of interfering with a flight crew and engaging in abusive sexual contact with another person while a passenger on a flight from Salt Lake City, Utah, to Bozeman was arraigned on charges on July 18, U.S. Attorney Jesse Laslovich said today.
Hunter Andrew Dietrich, 42, pleaded not guilty to an indictment charging him with interference with flight crew members and attendants and one count of abusive sexual contact in special aircraft jurisdiction of the United States. Dietrich faces a maximum of 20 years imprisonment, a $250,000 fine and three years of supervised release on the interference charge. He faces a maximum of two years imprisonment, a $250,000 fine and one year of supervised release on the abusive sexual contact charge.
U.S. District Magistrate Judge Kathleen L. DeSoto presided. Dietrich was released pending further proceedings.
As alleged in the indictment, on Feb. 11, while aboard Delta Airlines Flight 3789 from Salt Lake City, Utah, to Bozeman, Dietrich assaulted and intimidated flight crew members and attendants, interfered with the performance of their duties and lessened their ability to perform their duties. Additionally, the indictment alleges that while on the flight, Dietrich knowingly engaged in sexual contact with another person without that person’s permission.
An indictment is merely an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Zeno B. Baucus is prosecuting the case. The FBI and Bozeman Airport Police conducted the investigation.
PACER case reference. 23-55.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl
XXX
Boston Woman Sentenced for Physical Therapy Clinic Fraud SchemeRead the Press Release
BOSTON – A Boston woman was sentenced today in federal court in Boston in connection with a scheme to defraud multiple insurance providers for physical therapy services that were not provided to patients.
Raya Bagardi, 38, was sentenced by U.S. District Court Judge Richard G. Stearns to time served (one day) and two years of supervised release, with the first year to be spent in home confinement. Bagardi was also ordered to pay restitution in the amount of $2,301,645. In March 2023, Bagardi pleaded guilty to one count of conspiracy to commit mail fraud. Bagardi was indicted in February 2021 along with co-defendants Gyulnara Bayryshova, Anna Barenboym and Slava Pride.
Bagardi was a licensed physical therapy assistant at Brighton Physical Therapy (BPT), a Brighton-based physical therapy clinic owned by Bayryshova. From October 2018 through June 2020, Bayryshova, Bagardi and their co-defendants conspired to be reimbursed by multiple insurance companies for physical therapy services that were not actually provided and/or were not medically necessary and, in some cases, were provided by individuals not licensed to provide the services. Specifically, Bagardi and her co-defendants falsely billed for services purportedly rendered to patients injured in automobile accidents when the services were not actually provided. Further, BPT paid patients for referrals and referred patients to attorneys to assist with patients’ insurance settlements.
All three of Bagardi’s co-defendants have pleaded guilty to their roles in the conspiracy. On July 12, 2023, Pride was sentenced to two years in prison and two years of supervised release. Pride was also ordered to pay restitution of $2,301,645. Bayryshova and Barenboym are scheduled to be sentenced on July 26, 2023 and September 2023, respectively.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; Boston Police Commissioner Michael Cox; and Quincy Police Chief Mark Kennedy made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of the Criminal Division prosecuted the case.
Billings felon admits illegal possession of firearmRead the Press Release
BILLNGS — A Billings man with two prior federal felony convictions admitted today to illegally possessing a firearm, U.S. Attorney Jesse Laslovich said.
Robert John Bigback, 28, pleaded guilty to prohibited person in possession of a firearm or ammunition. Bigback faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other sentencing factors. Sentencing was set for Nov. 15. Bigback was detained pending further proceedings.
The government alleged in court documents that on March 9, Bigback’s mother found him sleeping in her house with a gun next to his head. His father brought the firearm, a Smith and Wesson 9mm pistol, to the United States Federal Probation Office. When Bigback woke up, his mother saw him frantically looking for something where the gun had been. Bigback told his mother he had been using methamphetamine, was paranoid and thought people were after him. Bigback had prior felony federal convictions for being a felon in possession of a firearm and for distribution of meth, and he was prohibited from possessing firearms.
Assistant U.S. Attorney Timothy J. Racicot is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Probation Office and Montana Division of Criminal Investigation conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
XXX
Belle Fourche Man Sentenced to ProbationRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Belle Fourche, South Dakota, man convicted of Concealment of an Event Affecting Title II Disability Entitlement. The sentencing took place on July 17, 2023.
Kevin Dodd Eisele, 60, was sentenced to one year of probation, ordered to pay $1,652.90 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Eisele was indicted for Theft of Government Funds and Concealment of an Event Affecting Title II Disability Entitlement by a federal grand jury in March of 2022. He pleaded guilty on March 3, 2023.
The conviction stemmed from between July of 2020 and June of 2021, when Eisele knowingly failed to disclose a change in his household resources in order to continue receiving and spending his SSI benefits.
This case was investigated by the Social Security Administration, Office of the Inspector General. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
Arizona Man Sentenced After Pleading Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – KABIEN CORTES, age 34, a resident of Phoenix, Arizona, was sentenced by United States District Judge Jane Triche Milazzo to seventy (70) months’ imprisonment, three (3) years of supervised release, and a $100.00 mandatory special assessment fee after pleading guilty to a superseding bill of information charging him with one count of conspiracy to distribute and possess with intent to distribute a quantity of a mixture or substance containing a detectable amount of methamphetamine, 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, on March 16, 2020 during a DEA investigation, a drug supplier arranged the delivery of methamphetamine to the New Orleans area. On March 19, 2020, the DEA determined that a driver, later identified as Joanna Manzano, was travelling from Phoenix, Arizona to New Orleans with the methamphetamine and would need money for expenses. The DEA also determined that the methamphetamine was in liquid form and that another individual would arrive in New Orleans at a later date to convert the liquid methamphetamine into a solid form.
The investigation disclosed that Manzano, accompanied by Cortes, traveled to New Orleans. After Manzano and Cortes arrived in Louisiana, law enforcement officers identified their vehicle and maintained surveillance on them until they arrived in Metairie. On March 20, 2020, at approximately 11:50 p.m., Louisiana State Troopers conducted a traffic stop of Manzano and Cortes. After obtaining consent to search the vehicle, troopers noticed that the bed-liner of the truck had been removed and was being held in place by a rubber cord. A continued search of the vehicle resulted in the discovery of approximately 4,576 grams of liquid methamphetamine in the gas tank of the vehicle.
This case was investigated by the Drug Enforcement Administration and the Louisiana State Police. The prosecution was handled by Assistant United States Attorney André Jones of the Narcotics Unit.
American man who sexually abused multiple Filipino girls sentenced to 50 yearsRead the Press Release
ATLANTA - Stephen Gordon Grimes has been sentenced for producing child pornography overseas and transporting the material to the United States. Over the course of three years, he recorded videos of his sexual abuse of girls as young as four years old.
“Grimes exploited poverty in the Philippines to gain access to multiple young girls,” said U.S. Attorney Ryan K. Buchanan. “He sexually abused these children for multiple years and recorded the crimes. His sentence rightly reflects the harm that he inflicted on these children.”
“I’m thankful for the successful resolution of and I’m happy that the victims can begin the healing process knowing that this predator will no longer be able to prey upon them,” said Acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners around the globe work tirelessly to protect the most vulnerable population and hold those who seek to prey upon them, accountable.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: around 2009, Grimes met two Filipino women in an online chat room. These women, who were sisters, agreed to arrange for Grimes to sexually exploit young girls in the Philippines, including the children of one of the women. Grimes worked as a civilian contractor on a Navy ship and often traveled to the Philippines at the end of each contract. He paid one of the women $500 a month to gain exclusive access to his child victims while he was in the Philippines.
Beginning no later than February 2016 and continuing until May 2019, Grimes used a GoPro device to record his sexual abuse of Filipino girls between the ages of four and 13 years. He also used a cell phone camera to record his sexual assault of the girls.
When Grimes traveled from South Korea to Hartsfield-Jackson International Airport in Atlanta on September 29, 2020, special agents with Homeland Security Investigations (HSI) confiscated his computers, cell phone and other electronic devices. A subsequent analysis of these items revealed that he had produced 340 videos and 650 images of his abuse of Filipino girls. The analysis of his computer also showed that he downloaded 523 videos and 4,470 images of child pornography from the internet.
Following Grimes’ arrest, HSI special agents undertook an operation that led to the rescue of the girls whom he had exploited and resulted in the local prosecution of the two women who conspired with Grimes.
Stephen Gordon Grimes, 51, of Lompoc, California, has been sentenced to 50 years in prison to be followed by a lifetime term of supervised release. Grimes was found guilty by a jury on April 7, 2023, of multiple counts of producing child pornography outside the United States, attempting to transport child pornography, and possessing child pornography. Parole does not exist in the federal prison system.
This case was investigated by Homeland Security Investigations.
Assistant U.S. Attorneys Paul R. Jones and Amy M. Palumbo prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Amazon Agrees to Injunctive Relief and $25 Million Civil Penalty for Alleged Violations of Children’s Privacy Law Relating to AlexaRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced that Amazon.com Inc. and its wholly-owned subsidiary Amazon.com Services LLC (collectively Amazon), have agreed to a permanent injunction and a $25 million civil penalty as part of a settlement to resolve alleged violations of the Children’s Online Privacy Protection Act (COPPA), the Children’s Online Privacy Protection Rule (COPPA Rule) and the Federal Trade Commission Act (FTC Act) relating to Amazon’s voice assistant service Alexa.
Alexa is a proprietary voice-activated service that Amazon provides through its Echo smart speakers, its “Alexa App” mobile application, and other devices and applications. Since May 2018, Amazon’s Alexa-related offerings have included voice-activated products and services directed toward children under 13 years of age. When a user makes a verbal request of an Alexa-enabled device, Amazon saves the voice recording of the request and creates a written transcript of it.
In a complaint filed in the U.S. District Court for the Western District of Washington, the government alleges that, since at least May 2018, Amazon violated the FTC Act, COPPA and the COPPA Rule with respect to Alexa and Alexa’s child-directed offerings. The complaint alleges that Amazon retained children’s voice recordings indefinitely by default, in violation of COPPA’s requirement that these recordings be retained only as long as reasonably necessary to fulfill the purposes for which they were collected. Other alleged violations include making deceptive representations that Alexa app users could delete their or their children’s voice recordings, including audio files and transcripts and their geolocation information, when in fact Amazon on some occasions failed to delete all such information at users’ request. The complaint also alleges that Amazon engaged in unfair privacy practices with respect to Alexa users’ geolocation information and voice recordings, including (in some instances) by failing to honor users’ deletion requests and failing to notify consumers that it had not done so.
The stipulated order entered today by the federal district court requires Amazon to pay $25 million in civil penalties. The order imposes injunctive relief that requires Amazon to identify and delete inactive child profiles (profiles that have not been used for 18 months) unless a parent requests that they be retained. Amazon also will notify parents whose children have accounts of this change to its policies. The order further prohibits Amazon from making misrepresentations about Amazon’s retention, access to or deletion of geolocation information or voice information, including children’s voice information, and mandates deletion of geolocation information, voice information, and children’s personal information upon the request of the user or parent, respectively. Finally, the order requires Amazon to make disclosures to consumers relating to its retention and deletion practices regarding Alexa App geolocation information and voice information.
“Today’s settlement reflects the department’s dedication to protecting children online,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department and the FTC are committed to working together to ensure that companies do not misrepresent to parents how children’s personal information is handled, retained, or deleted, and do not retain that information for longer than reasonably necessary.”
“Amazon’s history of misleading parents, keeping children’s recordings indefinitely, and flouting parents’ deletion requests violated COPPA and sacrificed privacy for profits,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “COPPA does not allow companies to keep children’s data forever for any reason, and certainly not to train their algorithms.”
“Parents want and deserve to have control over data related to their young children – this includes recordings of the child’s voice, the child’s location, and the questions the child asks an Alexa device,” said Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington. “Some may be delighted to have those recordings saved for sentimental reasons – but that needs to be the parent’s choice – not a decision made by Amazon. This settlement requires Amazon to provide notice to parents with ways they can select whether and how that data is retained.”
This matter was handled by Senior Trial Attorney James T. Nelson and Assistant Directors Lisa Hsiao and Rachael Doud of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorney Kayla Stahman for the Western District of Washington and Elisa Jillson, Andrew Hasty and Julia Horowitz of the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at www.FTC.gov.
Accountant Indicted for Embezzling More than $715,000 from Spokane Medical PracticeRead the Press Release
Spokane, Washington – Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a grand jury returned an Indictment charging Carol Casilla, age 25, of Spokane, Washington, with forty-six counts of fraud in connection with Casilla’s theft of more than $715,000 from a Spokane medical practice at which she was employed between 2020 and 2023.
Between May 2020 and March 2023, Casilla was employed as an accountant by Spokane Dermatology Clinic (SDC), a dermatological practice located in Spokane. The Indictment alleges that, while employed at SDC, Casilla used her position to fraudulently issue company checks to herself and deposit them into her own personal accounts, and to make electronic funds transfers using company funds toward her personal credit cards. The Indictment alleges that some of the transfers were made to a fictitious company that Casilla created in order to make it appear as though the transfers were for legitimate company expenditures. According to the Indictment, Casilla made hundreds of fraudulent transfers in this manner, stealing more than $715,000 in total.
“Accountants, bookkeepers, and financial professionals have access to funds and sensitive financial information,” said United States Attorney Waldref. “When they abuse that access in order to line their own pockets, they devastate our communities. We will continue to work hand-in-glove with our law enforcement partners and with the community to hold accountable those individuals who abuse their positions of trust.”
The fraud charges carry maximum sentences of up to 30 years in federal prison. This case was investigated by the Federal Bureau of Investigation, Spokane Resident Agency. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting the case on behalf of the United States.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States v. Casilla, Case No: 2-23-CR-00085-TOR
Tuesday 18 July 2023
Wisconsin Man Pleads Guilty to Producing Child PornographyRead the Press Release
ST. PAUL, Minn. – A Manitowoc, Wisconsin man has pleaded guilty to producing a video depicting his sexual abuse of a minor in Minnesota, announced U.S. Attorney Andrew M. Luger.
According to court documents, on or about June 7, 2019, Jason Lee, 28, used and coerced a prepubescent minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct.
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. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Lee pleaded guilty on July 17, 2023, in U.S. District Court before Judge Donovan W. Frank to one count of attempted production and production of child pornography. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, Saint Paul Police Department, and Manitowoc, Wisconsin Police Department.
Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
U.S. Department of Justice, Federal Trade Commission, Federal Communications Commission and Other Federal and State Law Enforcement Agencies Announce Results of Nationwide Initiative to Curtail Illegal Telemarketing OperationsRead the Press Release
The Justice Department, Federal Trade Commission (FTC), and Federal Communications Commission (FCC) announced today a crackdown on telemarketing operations responsible for billions of illegal calls to U.S. consumers. The U.S. Postal Inspection Service, Social Security Administration Office of the Inspector General and other law enforcement partners, including attorneys general from all 50 states and the District of Columbia, joined the announcement.
Today’s announcement caps approximately a year of enforcement actions taken by federal and state agencies to combat the scourge of illegal telemarketing, including robocalls and scam calls. In the last year, the department has pursued approximately 90 cases against illegal telemarketing operations and those who facilitate those illegal calls. This initiative, “Operation Stop Scam Calls,” targets telemarketers, including those who use telephone calls to commit fraud, as well as those who facilitate illegal telephone calls. Enforcement actions targeted lead generators who deceptively collect consumers’ telephone numbers and then provide those telephone numbers to robocallers and others (falsely representing that these consumers have consented to receive calls), as well as Voice over Internet Protocol (VoIP) service providers who facilitate tens of billions of illegal robocalls every year. Significant actions also were taken against individuals and entities who unjustly profited by facilitating the movement of money from scam call victims to fraudsters.
“Illegal telephone calls interrupt cherished time with family and friends and, when they are used to commit fraud, can be financially and emotionally devastating,” said Deputy Assistant Attorney General Arun G. Rao of the Justice Department's Civil Division, Consumer Protection Branch, who appeared at a press conference in Chicago announcing the initiative. “The department and its partners are committed to pursuing those who make and facilitate these calls.”
“Today, government agencies at all levels are united in fighting the scourge of illegal telemarketing. We are taking action against those who trick people into phony consent to receive these calls and those who make it easy and cheap to place these calls,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “The FTC and its law enforcement partners will not rest in the fight against illegal telemarketing.”
“The FCC is committed to using every tool at its disposal to crack down on illegal robocalls and protect the US communications network,” said Chief Loyaan Egal of the FCC’s Enforcement Bureau. “We, alongside our partners, will not let up in tracking, prosecuting, and penalizing the bad actors in this space and protecting consumers.”
Cases brought by the department targeted both foreign and domestic telemarketing operations. These cases ranged from actions targeting fraudsters who directly contacted victims to actions targeting those who provided scam call operators with the means to perpetrate their schemes. The department’s actions contributed to the collective actions, over 180, taken by the federal and state partners participating in Operation Stop Scam Calls.
The department’s Consumer Protection Branch brought nine civil actions in partnership with the FTC, which collectively alleged conduct involving billions of robocalls. Four of these cases involved lawsuits against VoIP providers that transmitted illegal phone calls. Some of these calls were scams arising from foreign call centers, such as calls by fraudsters pretending to be government agencies or impersonating e-commerce companies. Defendants, as alleged in the government’s complaints, continued to transmit illegal calls even after being warned that those calls were scam pitches. These cases also included a resolution with multinational payment processing company Nexway, arising from a lawsuit that alleged that the company processed credit card payments for India-based Tech Live Connect and other foreign clients that committed telemarketing fraud via tech support scams.
Cases brought by the department also involved criminal charges against those alleged to have made illegal phone calls or facilitated such calls. Many of these cases involved foreign fraud operations that victimized older adults. The department prosecuted perpetrators of various lottery fraud schemes, in which consumers were falsely told they had won a large prize but must first pay money to receive that prize.
-
In three separate matters brought by the Consumer Protection Branch, three individuals were extradited from Jamaica. Two have since pleaded guilty.
-
The Criminal Division’s Fraud Section secured a nearly 133-month sentence in a Costa Rica-based lottery scheme.
-
The U.S. Attorney’s Office for the District of Arizona secured a 160-month sentence for a leader of an international fraud ring who distributed lead lists containing the personal information of thousands of victims.
Additional lottery fraud-related criminal matters include those brought by the U.S. Attorney’s Offices for the District of Connecticut, the Eastern District of California, the Eastern District of New York, the District of South Carolina, the District of Nebraska, the Northern District of Florida, and the Northern District of Ohio.
The Justice Department and its partners urge consumers to be on the lookout for illegal calls, to take steps to minimize the number of illegal calls received, and to report any scam calls to law enforcement.
-
Callers may pressure you to send money by trying to scare you. They may pretend to be someone you know who is in trouble, a government agency, or a major company. These are fraudsters. Hang up.
-
Don’t trust your caller ID. It can be faked.
-
If you answer the telephone and hear a recorded message instead of a live person, it’s potentially a robocall trying to sell you something. It is probably illegal and likely a scam.
-
Only call a telephone number you know is real.
-
Make sure your number is on the Do Not Call Registry and consider using your telephone’s call blocking options or getting a call blocking app or service.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. To review a list of common transnational elder fraud scams, many facilitated by telephone calls, visit www.justice.gov/civil/consumer-protection-branch/transnational-elder-fraud-strike-force.
To learn more about the department’s elder fraud efforts, visit www.justice.gov/elderjustice. If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
For more information on unwanted calls, including steps people can take to avoid robocall scams and to hear examples of illegal calls, visit www.ftc.gov/calls, which is also available in Spanish at www.ftc.gov/llamadas.
Some of the cases referenced in today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
-
U.S. Attorney’s Office, Joined by State and Local Agencies, to Host Summer One-Stop Reentry Resource Fair at the War Memorial in Baltimore on Wednesday, July 19, 2023Read the Press Release
Baltimore, Maryland – On Wednesday, July 19, 2023, the U.S. Attorney’s Office for the District of Maryland, the U.S. Probation and Pretrial Services Office, and the Maryland Division of Parole and Probation, will sponsor a one-stop reentry resource fair that will be held from 10:00 a.m. to 2:00 p.m. at the Baltimore War Memorial, 101 N. Gay Street, Baltimore, MD. More than 40 organizations, including at least 20 employers, will be on-site offering support, assistance and resources to returning citizens and justice-involved persons, including in the areas of employment, job training, educational opportunities, health services, transitional housing, expungement help and more.
This reentry resource and job fair is a component of the U.S. Attorney’s Office’s violent crime reduction strategy. In addition to the office’s enforcement efforts to remove violent criminals with guns from our communities, the U.S. Attorney’s Office has initiated a number of outreach, intervention and prevention efforts to support and invest in communities plagued by violence, such as this reentry resource fair.
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 and https://www.justice.gov/usao-md/community-outreach.
# # #
U.S. Attorney and Federal Partners Address Gun Violence and Firearms Trafficking in ConnecticutRead the Press Release
U.S. Attorney Vanessa Roberts Avery and the leadership of the U.S. Attorney’s Office’s Violent Crimes and Narcotics Unit convened a series of meetings last week with federal, state, and local law enforcement agencies to discuss continuing strategies to curb gun violence and firearms trafficking in Connecticut.
“While I and members of my office regularly meet with our law enforcement partners to share information, discuss crime trends, and coordinate investigations and prosecutions, these meetings take on an added significance during the summer months when cities in Connecticut and across the country traditionally experience an uptick of gun violence and related criminal activity,” said U.S. Attorney Avery. “Using a data-driven, intelligence, and evidence-based approach, we are able to focus on the small number of individuals who are driving the violence in our cities. Then, either through our violence prevention engagement initiatives, or through federal or state prosecution, we aim to stop the violence before it occurs. Our collective goal is to make our communities safer by freeing it of recurrent gun violence and the trauma it causes.”
“Working collaboratively with our local, state, and federal law enforcement partners, we continue to aggressively combat Connecticut gun violence and trafficking,” said FBI Special Agent in Charge Robert Fuller. “Our FBI violent crime and violent gang task forces, which are located throughout Connecticut, consistently prove to be very effective in addressing gun violence in our cities and towns. This violent threat plaguing our communities is a top priority for the FBI.”
“ATF is committed to our continued collaboration and support of our local, state and federal partners to address violent gun crime,” said ATF Special Agent in Charge James Ferguson.
“DEA is committed to investigating and dismantling violent drug trafficking organizations operating in Connecticut,” said DEA Special Agent in Charge Brian D. Boyle. “As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and communities. DEA and its local, state, and federal partners will continue to work collaboratively to bring to justice those that commit these crimes.”
“The U.S. Postal Inspection Service stands with our federal, state, and local partners to confront the violence in our communities,” said Ketty D. Larco-Ward, Inspector in Charge, U.S. Postal Inspection Service. “We will aggressively pursue the criminals who, through their misuse of the U.S. Mail, facilitate the crimes which fuel the violence on our streets.”
As the majority of violent crime in Connecticut occurs in heavily-populated Bridgeport, Hartford, New Haven and Waterbury, the U.S. Attorney’s Office currently coordinates Project Safe Neighborhoods (PSN) programs in each of these cities. PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. The U.S. Attorney’s Office has recently supplemented resources in these four PSN cities, and continues to focus on violent crime in other cities across the state.
Each PSN city’s police department is also an important participant in multiple federal law enforcement task forces that address crime throughout the region. Other Connecticut police departments also contribute significantly to federal task forces.
Another significant part of federal law enforcement’s gun violence reduction strategy involves long-term investigations that target members of gangs and groups responsible for much of the violence in Connecticut’s cities. In Bridgeport, more than 30 alleged gang members have been charged across multiple indictments with offenses related to narcotics trafficking, murders, and other acts of violence committed in recent years. The U.S. Attorney’s Office is also currently prosecuting alleged gang members and associates in New Haven and Waterbury.
The U.S. Attorney’s Office is also focusing on the illegal straw purchasing of firearms, the trafficking of firearms into Connecticut and around the state, increasing numbers of privately-made firearms (“PMFs” or “ghost guns”), as well as firearms containing “switches,” which convert ordinary firearms into fully automatic machine guns.
“We are constantly challenged by the sheer number of illegal firearms on the streets, the destructive strength of many of them, and technologies that make their manufacture easier and their tracing harder,” said U.S. Attorney Avery. “These guns endanger the community and the officers who are sworn to protect us. This is why we are prioritizing the prosecution of individuals who help turn legal firearms into illegal firearms, and those who manufacture and traffic guns. Police departments are also increasing the use of the ATF-sponsored National Integrated Ballistic Information Network (NIBIN) to help connect recovered firearms to shell casings found at shooting scenes, which leads to additional arrests and successful prosecutions.”
In addition to the prosecution of firearm and violent crime cases, and the violence prevention efforts that are a major component of PSN, members of the U.S. Attorney’s Office also actively participate in federal court-sponsored programs in an effort to reduce recidivist behavior and make communities safer, including Reentry Court, which offers assistance to formerly-incarcerated individuals on federal supervised release, and Support Court, which connects federal offenders with drug and alcohol addiction to treatment, other resources, and support networks. The Office has also reached thousands of teens through FED-UP and HEAT, which are anti-violence and drug prevention programs for middle school and high school students emphasizing the extreme dangers of joining groups engaged in violent crime, and of experimentation with fentanyl, including fake pills.
“Ultimately, we know that reducing gun violence requires a multi-pronged approach, which is why members of my office and our law enforcement partners devote much time and energy engaging with returning citizens who have been through the penal system, as well as with youth who we hope will take a different path, to reduce the cycle of violence and save countless lives,” said U.S. Attorney Avery.
U.S. Attorney Thompson Announces Human Trafficking Training Initiative for Educators and Social WorkersRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson joined with West Virginia education and human services leaders and federal law enforcement partners today to announce new training tools to help better identify and report human trafficking and rescue child victims.
The U.S. Attorney’s Office partnered with the West Virginia State Police and the West Virginia Center for Children’s Justice to develop training videos specifically for teachers and child protective services workers. The training focuses on the risk factors and vulnerabilities of human trafficking, identifies red flags for human trafficking, and provides ways to respond to suspected human trafficking.
“One thing has really stood out to me when I’ve talked to the victims in the cases we’ve prosecuted: they all say, ‘I wish somebody had realized this sooner,’” Thompson said. “That person who realizes something sooner could be a teacher, it could be a CPS worker, it could be a Little League coach. It could be someone in the community who recognizes it and makes the report.”
Thompson cited grim national statistics that have helped prompt this approach. More than 80 percent of trafficking victims under the age of 10 are trafficked by a family member. More than half of minor victims of human trafficking attend school while being trafficked. Two-thirds of human trafficking victims have been involved in the juvenile justice or foster care system.
“The overall goal is to call attention to human trafficking and share ways we can address it in West Virginia,” Thompson said. “This training will help these professionals as well as anyone in the community recognize human trafficking and know what to do when they recognize it. Some of this, they already know. Some of this is common sense. But if we can save one child from this, if we can get one victim out, it’s worth it and I hope we do a lot more than that.”
Thompson thanked the additional partners supporting this training initiative, who include the West Virginia Board of Education, the West Virginia Department of Education, the West Virginia Department of Health and Human Resources, the Federal Bureau of Investigation (FBI), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), and the West Virginia Fusion Center.
The videos are available through the West Virginia Center for Children’s Justice and its Handle With Care program (http://www.handlewithcarewv.org).
- Training video for schools: https://vimeo.com/845303381
- Training video for CPS: https://vimeo.com/845301913
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.
###
U.S. Attorney Brandon B. Brown Announces the Indictment of 24 Individuals Associated with Shreveport Street Gang on Charges Related to CARES Act Fraud SchemeRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown, along with Supervisory Senior Resident Agent in Charge Lynn Higgins of the Federal Bureau of Investigation, Special Agent in Charge Gary Smith of the Department of Treasury Inspector General for Tax Administration, and Acting United States Marshal Chris Felix held a press conference today to announce the indictment of 24 defendants on fraud charges related to the CARES Act. The defendants in this indictment are all members or associates of a Shreveport street gang that refer to themselves as Step or Die or SOD.
In March 2020 Congress enacted the Coronavirus Aid, Relief and Economic Security (CARES) Act which was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. As part of the CARES Act, the Small Business Administration (SBA) provided Economic Injury Disaster Loans (EIDL), which were low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters. The CARES Act also provided authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (“PPP”).
Defendant Name
Charges
Loan Amount and Type
Sirdell McCullough
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
Roderguiz Henry
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,260 / PPP
Johntrell Crutchfield
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
Deanthony Johnson
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,575 / PPP
$8,000 / EIDL
Deaaundrakous Hagger
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,833 / PPP
$20,833 / PPP
Nico Stewart
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$4,000 / EIDL
$1,000 / EIDL
Timothy Vasher
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
Destane Glass
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
Xavien Beasley
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$10,000 / EIDL
Quinterrius Brown
- Conspiracy to Commit Wire Fraud
$30,800 / EIDL
Not funded
Toronco Loston
- Conspiracy to Commit Wire Fraud
$20,832 / PPP
Not funded
$201,100 / EIDL
Not funded
Dewonnie Brown
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
$20,800 / PPP
$20,833 / PPP
$20,833 / PPP
Joshua Dominique
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
Kadarius Jenkins
- Conspiracy to Commit Wire Fraud
$20,832 / PPP
Jasmine Glass
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$8,332 / PPP
Tramaine Taylor
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
Antoria Johnson
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,458 / PPP
$20,458 / PPP
Joketa Baulkman
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$19,005 / PPP
$19,005 / PPP
Tyneal Johnson
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,833 / PPP
$20,800 / PPP
Cierra Fleming
- Conspiracy to Commit Wire Fraud
$20,207 / PPP
Tramarciea Ruffins
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,415 / PPP
Olivia Thomas
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
Samarrian Kingston
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,272 / PPP
Lakeah Gipson
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,058 / PPP
“This is why the United States Attorney’s Office is here,” said U.S. Attorney Brandon B. Brown. “This is what we do and is why we become federal prosecutors and investigators with the Department of Justice. Prosecuting violent street gangs with white collar statutes is rare, but we use all the tools we have and try to hold those accountable that break the law and terrorize our communities with acts of violence. We hope to continue to collaborate with our state partners to do our part to eradicate violence while simultaneously focusing on one of the priorities of the department, which is CARES Act fraud.”
“The FBI works with its partners to disrupt and dismantle criminal enterprises like this one,” said Douglas A. Williams, Jr., Special Agent in Charge of FBI New Orleans. “Individuals or groups who seek to steal from programs meant to aid Americans in their time of need, will be investigated and prosecuted accordingly.”
“This indictment demonstrates the Treasury Inspector General for Tax Administration’s commitment to investigate and bring to justice those that victimize the American taxpayer,” stated Inspector General J. Russell George. “Abusing a Federal program designed to assist Americans in need, by fraudulently applying for loans, has and will continue to be aggressively investigated. I want to thank our law enforcement partners and the United States Attorney’s office for their commitment to this goal.”
Defendant Roderguiz Henry is a fugitive. If you have information concerning his whereabouts, please contact the U.S. Marshal’s Service at 318-934-4300.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
If convicted, the defendants face a sentence of up to 20 years in prison, 1 to 3 years of supervised release, and a fine of up to $250,000.
The case is being investigated by the Federal Bureau of Investigation, Department of Treasury-Inspector General for Tax Administration, and United States Marshal’s Service and prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
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 of Justice’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.
# # #
Three Appointed to Serve as Assistant United States Attorneys to Address Violent Crime, Complex White Collar Enforcement, and Other Critical CasesRead the Press Release
PROVIDENCE – United States Attorney Zachary A. Cunha today announced the appointment and swearing-in of three new Assistant United States Attorneys for the District of Rhode Island: Kevin M. Bolan, Julianne L. Klein, and Peter I. Roklan. Mr. Bolan will serve in the Office’s Civil Division, focusing on affirmative civil enforcement, while Ms. Klein and Mr. Roklan have been assigned to the Criminal Division.
Prior to his appointment, Kevin M. Bolan was a partner with the law firm of White & Case, LLP, where he both handled and managed civil and criminal trials and investigations as part of the firm’s white collar practice group. Earlier in his career, Mr. Bolan was an associate, and later partner, with the firm of McDermott Will & Emery in both Boston, Massachusetts and Washington, D.C. He is a graduate of Harvard College and the Georgetown University Law Center.
Julianne Landsvik Klein joins the office from the Boston office of Cooley, LLP, where she has served as an Associate for the past eight years. In that role, she has handled numerous DOJ and SEC investigations, worked on complex commercial matters, and handled significant pro bono litigation. Prior to joining Cooley, Ms. Klein worked in the Chicago offices of Steptoe & Johnson, LLP, Dinsmore & Schol, LLP, and for the Staff Attorneys Office of the United States Court of Appeals for the Seventh Circuit. She is a graduate of Boston College and the University of Michigan Law School.
Rhode Island native Peter I. Roklan joins the Office following a distinguished sixteen-year tenure with the Rhode Island Department of Attorney General, where he prosecuted a wide variety of criminal cases on behalf of the State of Rhode Island, including matters involving public corruption, firearms, narcotics, and organized crime. Mr. Roklan previously served as a Special Assistant United States Attorney, working on federal cases with prosecutors in this Office. He is a graduate of the University of Massachusetts at Amherst, and the Roger Williams University School of Law.
“I am tremendously excited that these three exceptional advocates have joined the ranks of the U.S. Attorney’s Office for the District of Rhode Island,” said U.S. Attorney Cunha. “Their backgrounds, education, and experience make them ideally suited to carry on and enhance our Office’s critical work to pursue justice and enhance public safety on behalf of all of our Ocean State communities.”
###
Theft of a Firearm from Main Street Pawn in Lincoln Leads to 2+ Year Prison Sentence for Bangor ManRead the Press Release
BANGOR, Maine: A Bangor man was sentenced in federal court today for theft of a firearm from a licensed firearms dealer.
U.S. District Judge Lance E. Walker sentenced Jonathan Birtz, 40, to 27 months in prison followed by three years of supervised release.
According to court records, in July 2021, Birtz stole a .380 caliber pistol from Main Street Pawn in Lincoln. Security footage showed Birtz reaching over the counter to take the pistol and then concealing it in a folded blanket he was carrying.
The Lincoln Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
###
Texas Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – LEONEL GONZALEZ, age 40, a resident of Houston, Texas, pled guilty on July 12, 2023 to a one-count indictment charging him with conspiracy to distribute and possess with intent to distribute five hundred (500) grams or more of a a mixture and substance containing a detectable amount of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(A), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, on five occasions between May 25, 2020, and July 2, 2020, GONZALEZ distributed kilogram quantities of methamphetamine to a methamphetamine dealer who then redistributed the drugs in the Eastern District of Louisiana.
For the conspiracy count, GONZALEZ faces a mandatory minimum term of imprisonment of ten years and maximum of life imprisonment, a fine of up to $10,000,000.00, a term of supervised release of at least 5 years, and a mandatory special assessment fee of $100.00.
This case was investigated by the federal Drug Enforcement Administration. The prosecution was handled by Assistant United States Attorney André Jones of the Narcotics Unit.
St. Paul Felon Pleads Guilty to Illegal Possession of FirearmRead the Press Release
MINNEAPOLIS – A St. Paul man has pleaded guilty to illegally possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on March 7, 2023, officers with the St. Paul Police Department were conducting surveillance at an apartment looking for De’Voncea Lashoun Griffo, 24, a suspect in an ongoing homicide investigation. Officers observed Griffo leave his apartment building wearing a cross-body bag across his chest and get into the driver’s seat of a Chevrolet Equinox. After Griffo pulled into a thrift store parking lot, officers activated emergency lights and conducted a felony stop. Griffo removed his cross-body bag and set it behind the center console of the car, and was placed under arrest. Officers later obtained a warrant to search Griffo’s vehicle and recovered the cross-body bag, which contained a .45 caliber Glock pistol with an extended magazine containing 23 rounds of ammunition.
Because Griffo has a prior felony conviction, he is prohibited under federal law from possessing firearms or ammunition at any time.
Griffo pleaded guilty earlier today in U.S. District Court before Senior Judge Michael J. Davis to one count of possession of a firearm as a felon. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Paul Police Department.
Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
Southern California Man Charged with Diverting $4.8 Million in San Francisco-Based Investment Fraud SchemeRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco indicted Joon Woo Kim with fraud in connection with two related fraud schemes—the first, an alleged scheme to mislead investors to contribute to a fund he formed in San Francisco, and the second, a scheme to obtain a multi-million dollar business loans and line of credit by lying to a bank—announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. Kim was arrested earlier today in New Haven, Conn., and appeared in U.S. District Court for the District of Connecticut to face the charges.
According to the indictment, filed June 27, 2023, and unsealed today, Kim, 57, of Montebello, Calif., allegedly engaged in the first fraud scheme beginning June 2015 through at least March 19, 2022. Kim created an investment fund called the M5 Doctors Fund and allegedly induced investors to contribute to the fund by making false statements and omissions about the kinds of investments Kim would make while managing the fund’s assets. For example, Kim allegedly advertised that he would invest assets of the M5 Doctors Fund in securities of Tesla, Inc. and electric vehicle companies. Nevertheless, rather than invest the funds as he promised, Kim allegedly transferred nearly all M5 Doctors Fund assets, including funds from the liquidation of investments and the return on those investments, to CKR Enterprise, Inc., a wholesale food distribution company owned and operated by Kim and his wife.
As General Partner of the M5 Doctors Fund and the person who held himself out as manager and person responsible for the fund, Kim had a duty to disclose all material business, transactions, and investments to the fund’s investors and Limited Partners. Nevertheless, according to the indictment, from 2015 through July 2018, Kim transferred approximately $4.8 million in M5 Doctors Fund assets to CKR without informing the fund’s investors. Additionally, the indictment alleges Kim continued to tell investors he was investing in Tesla stock and the stock of public electric vehicle companies; failed to disclose to M5 Doctors Fund investors that he had transferred essentially all of the fund’s assets to his business, CKR; and took actions to mislead fund investors into believing that the M5 Doctors fund was solvent and engaged in investment activities.
In the second fraud scheme, Kim defrauded Hanmi Bank by applying for two loans for CKR, a $1,300,000 line of credit and a $3,200,000 business loan, that contained materially false and fraudulent representations and promises.
In sum, the indictment charges Kim with eight counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of bank fraud, in violation of 18 U.S.C. § 1344; and one count of making a false statement to a bank, in violation of 18 U.S.C. § 1014.
Kim’s initial San Francisco federal court appearance is scheduled for July 28, 2023.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Kim faces a maximum sentence of 20 years in prison, and a fine of $250,000, plus restitution, if appropriate, for each violation of 18 U.S.C. § 1343; 30 years in prison, and a fine of $1,000,000, plus restitution, if appropriate, for each violation of 18 U.S.C. §§ 1344 and 1014. The court also may order an additional term of supervised release to begin after a prison term as part of any sentence. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case, with the assistance of Elizabeth Kim. The prosecution is the result of an investigation by the FBI.
Six Pennsylvania Residents and One Resident of North Carolina Indicted on Wire Fraud Conspiracy, Computer Fraud, ID Theft and Possession of Child Sex Abuse Material ChargesRead the Press Release
ERIE, Pa. - Six residents of Pennsylvania and one resident of North Carolina have been indicted by a federal grand jury in Erie on charges of conspiracy to commit wire fraud, fraud in connection with unlawful computer access, aggravated identity theft, and receipt and possession of child sexual abuse material, United States Attorney Eric G. Olshan announced today.
The sixteen-count Indictment named the following:
Richard Alan Martz, Jr., 33, Meadville, Pennsylvania
Dylan Michael Miller, 30, West Mifflin, Pennsylvania
Christopher Clampitt, 33, Clemmons, North Carolina
Edward Grabb, 31, Jeanette, Pennsylvania
Michael Yackovich, 27, West Newton, Pennsylvania
Luke Robert Swinehart, 22, Lock Haven, Pennsylvania
Karlin Terrell Jones, 26, Beaver Falls, PennsylvaniaAccording to the Indictment presented to the court, the seven co-defendants conspired to hack into Snapchat accounts for the purpose of removing explicit images and videos depicting the victim account holders. After obtaining the explicit material, the co-defendants would then share the images and videos with each other and others online unbeknownst to the victim account holders.
“As alleged, the defendants used deception and hacking techniques to unlawfully access social media accounts so that they could steal, hoard, and trade explicit and otherwise private content of hundreds of unsuspecting victims,” U.S. Attorney Olshan said. “This Office and our law enforcement partners will reach far and wide to identify and prosecute those who victimize our communities via the internet, especially when they seek to victimize our most vulnerable population—our children.”
“The seven people charged today exploited their victims and engaged in a predatory behavior that will not be tolerated,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Hacking into social media accounts, stealing intimate pictures of unsuspecting victims and then selling and trading them in online forums is nothing short of reprehensible. These victims were re-victimized multiple times as their personal pictures were recirculated. We believe there is an extensive network of victims who still haven’t been identified.”
The law provides for a maximum total sentence of 69 years in prison, a fine of $1,750,000, or both for Martz; 34 years in prison, a fine of $1,000,000, or both for Miller; 22 years in prison, a fine of $500,000, or both for Clampitt; 22 years in prison, a fine of $500,000, or both for Grabb; 29 years in prison, a fine of $1,000,000, or both for Yackovich; 20 years in prison, a fine of $250,000, or both for Swinehart and Jones. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
If you believe you are a victim in this case and would like to opt-in to receive case notifications or if you have any questions about your rights, please contact the Victim Witness Coordinator at [email protected].
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rosie Hidalgo Sworn in as Director for the Office on Violence Against WomenRead the Press Release
The Justice Department announced that Rosie Hidalgo was sworn in today as the Director of the Office on Violence Against Women (OVW). As director, she will spearhead the Department’s principal efforts in confronting gender-based crimes. OVW provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to survivors of domestic violence, dating violence, sexual assault, and stalking, and oversees more than $700 million annually for grant programs authorized under the Violence Against Women Act (VAWA).
The Senate confirmed Hidalgo on July 11 in a bipartisan vote, making her the first Senate-confirmed director to lead OVW since 2012. Hidalgo’s career, spanning over 25 years, has been dedicated to eradicating gender-based violence. Her work as a public interest attorney, national policy advocate, and more recently as a White House advisor, culminates in her new role leading OVW. Before her current appointment, Hidalgo served as a special assistant to President Biden and senior advisor on gender-based violence at the White House Gender Policy Council. She also previously held a position at OVW as Deputy Director of Policy from 2014 to 2017.
“I am proud to swear in Rosie Hidalgo as the first Senate-confirmed Director of the Justice Department’s Office on Violence Against Women in 11 years,” said Attorney General Merrick B. Garland. “This is a historic affirmation of the Department's commitment to reducing gender-based violence, supporting survivors, and holding perpetrators accountable. Rosie has both the experience and the dedication to lead the Office’s essential work of protecting women, girls, and all those affected by domestic violence, dating violence, sexual assault, and stalking. I am confident that her return to the Department will further that crucial mission.”
“The Office on Violence Against Women is vital to implementing the Violence Against Women Act and providing leadership in combating domestic violence, sexual assault, and stalking,” said Deputy Attorney General Lisa O. Monaco. “Rosie’s leadership of OVW will strengthen those efforts and build on the Department’s commitment to meeting the needs of survivors of sexual violence.”
“Rosie Hidalgo has been a champion for survivors for years. Her experience and passion make her ideally suited to lead OVW, which has been steadfast in its mission to deploy the resources and tools communities need to address the needs of survivors,” said Associate Attorney General Vanita Gupta. “Rosie's track record of working diligently to support survivors of gender-based violence, and in particular, survivors from underserved and historically marginalized communities, makes her an ideal leader for OVW.”
“I am honored to have this opportunity to join colleagues at the Office on Violence Against Women and the Department of Justice to help advance our nation’s commitment to preventing and addressing domestic violence, dating violence, sexual assault, stalking, and other forms of gender-based violence,” said Director Rosie Hidalgo. “The renewal and strengthening of the Violence Against Women Act last year, along with increases in VAWA funding, enable us to enhance access to safety, justice, and holistic services for survivors, and support efforts to strengthen and broaden the coordinated community response.”
Hidalgo is also a former senior director of public policy for Casa de Esperanza: National Latin@ Network for Healthy Families and Communities, a national resource center with a focus on providing training, research, and policy advocacy to prevent and end domestic violence and sexual assault. Her public service work includes a detail to the Office of the Vice President during the Obama administration, working with the White House Advisor on Violence Against Women. She also served on the Biden Foundation’s Advisory Council for Ending Violence Against Women and on the American Bar Association’s Commission on Domestic and Sexual Violence.
She is a graduate of Georgetown University and the New York University School of Law.
Property company owner sentenced to prison for rental assistance fraudRead the Press Release
DAYTON, Ohio – A Tipp City man was sentenced in U.S. District Court today to 18 months in prison for defrauding a local non-profit organization. He was also ordered to pay $94,942 in restitution.
Antoine Draines, 43, defrauded Miami Valley Community Action Partnership (MVCAP) of rental assistance funds. MVCAP received federal funding as part of the CARES Act.
According to court documents, Draines controlled and operated Freedom for Living Property Management, LLC in Tipp City. The company owned and served as landlord of numerous rental properties in Dayton. According to Draines, he was, at one point, the second-largest individual owner of Section 8 housing units in Greater Dayton.
From at least June 2020 until December 2020, Draines lied to MVCAP so that he could improperly collect emergency rental assistance money for certain Freedom for Living properties. Draines knowingly sent false landlord statement forms concealing the critical fact that certain tenants were already having a substantial portion of their rent paid through federally funded housing vouchers.
Draines pleaded guilty to wire fraud in March 2023.
In addition, Draines fraudulently applied for and received Pandemic Unemployment Assistance benefits from the Ohio Department of Job and Family Services, resulting in Draines wrongfully collecting approximately $30,000.
“Through a cynical, opportunistic fraud scheme, Draines, sought to steal more than $150,000 from MVCAP by seeking emergency assistance that was not actually needed, or not actually used, to cover the rental obligations of existing tenants,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio. “The specific circumstances of Draines’ COVID-related fraud only make it worse. Draines targeted programs intended to aid those struggling to make ends meet in the face of the pandemic, converting a global health crisis into a chance at a quick buck.”
"Mr. Draines used his position during an unprecedented national pandemic to steal critical taxpayer money intended to help families," said Special Agent-in-Charge Shawn Rice. “HUD OIG remains steadfast in its commitment to working with Federal prosecutors and law enforcement partners to aggressively pursue those who engage in activities that threaten the integrity of HUD programs.”
“Antoine Draines defrauded the Ohio Department of Job and Family Services (ODJFS) by filing false unemployment insurance (UI) claims. Draines stole benefits intended to assist those who became unemployed due to the COVID-19 pandemic. We will continue to work with our law enforcement partners and ODJFS to protect the integrity of the UI system from those who exploit these benefit programs,” said Irene Lindow, Special Agent in Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
Joining Parker in announcing the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose were Shawn Rice, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General, and Irene Lindow, Special Agent in Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. Assistant United States Attorney Rob Painter and Deputy Criminal Chief Brent G. Tabacchi are representing the United States in this case.
# # #
Poplar Bluff Felon Caught with Two Guns Sentenced to PrisonRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Tuesday sentenced a convicted felon from Poplar Bluff, Missouri who was caught with two guns to 40 months in prison.
Judge Limbaugh ordered the prison sentence for Tina Marie Litvinchyk, 31, to run consecutive to a 10-year prison sentence she is serving for two drug charges in Butler County Circuit Court.
Litvinchyk pleaded guilty in March in U.S. District Court to one count of being a felon in possession of a firearm. She admitted that on June 8, 2022, Southeast Missouri Drug Task Force officers found two .380-caliber pistols in a locked safe, as well as two bags of marijuana and a digital scale. One of the pistols had been stolen less than three weeks earlier in Carter County, Missouri.
Litvinchyk has three prior felony drug convictions and is barred from possession of a firearm. She was on parole at the time of her arrest.
The case was investigated by the Southeast Missouri Drug Task Force, the Missouri State Highway Patrol, the Butler County Sheriff’s Department and the Poplar Bluff Police Department. Assistant U.S. Attorney Timothy Willis prosecuted the case.
Pennsylvania Man Gets Two Years in Federal Prison for Participation in Nationwide Fraud SchemeRead the Press Release
WILMINGTON, Del. – A Philadelphia, Pennsylvania man was sentenced yesterday to two years in federal prison for his participation in a nationwide scheme to fraudulently obtain over $700,000 in gift cards and merchandise from a nationwide home improvement store. The Honorable Richard G. Andrews pronounced the sentence.
According to court documents, Mamadou Bah, 39, conducted over a thousand fraudulent transactions at home improvement stores throughout the country between May 2018 and June 2020, using the fake name “Richard Traynham.” Bah would pay for gift cards and merchandise at home improvement stores using a barcode on his phone that was linked to fraudulently obtained credit cards. All told, Bah caused losses in excess of $733,000 across stores in 21 states. For this conduct, Bah pled guilty to aggravated identity theft, which carries a two-year mandatory sentence.
U.S. Attorney David C. Weiss made the announcement and commented on the sentence. “Mr. Bah perpetrated a lucrative fraud for years through identity theft. By working with our law enforcement partners, my office was able to stop Mr. Bah from further fraud and secure a federal prison sentence. Those who think they can get away with stealing another person’s identity information to defraud a retailer should learn from Mr. Bah. If convicted, a mandatory prison sentence awaits you.”
“The FBI remains committed to investigating these types of sophisticated fraud schemes and to seeking justice for those affected by them,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “If you have fallen victim to a scam, please report it to the FBI’s Internet Crime Complaint Center at www.ic3.gov or 1-800-CALL FBI. This information will help investigate these criminals.”
Assistant U.S. Attorney Alexander P. Ibrahim prosecuted the case, which was investigated by the Federal Bureau of Investigation with assistance from the Millsboro Police Department.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:21-cr-065.
Okmulgee Resident Sentenced for Sexual Abuse, Federal Firearms and Immigration OffensesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Edgar Rene Garcia-Limon, age 36, was sentenced to life in prison for Aggravated Sexual Abuse in Indian Country and Abusive Sexual Contact in Indian Country, 120 months in prison for Felon in Possession of Firearm, and 24 months in prison for Illegal Reentry of Previously Removed Alien. The sentences run concurrently.
The charges arose from investigations by the Tulsa Police Department, the Muscogee (Creek) Nation Lighthorse Police, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
On May 18, 2022, a federal jury returned guilty verdicts on all counts after a two-day trial. During the trial, the United States presented evidence that the defendant sexually abused a female child under the age of eleven over a span of seven years. The United States also presented evidence that the defendant, a felon, was in possession of two firearms. Finally, the United States presented evidence that the defendant illegally returned to the United States from Mexico after having been previously removed from the United States in July 2019. The crimes occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation and within the Eastern District of Oklahoma.
“The abuse suffered at the hands of the defendant will have long-lasting effects on his victim, and there is no question the sentencing is just,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “The FBI and our law enforcement partners will continue to aggressively pursue the most serious crimes in Indian Country and create safer communities for all Oklahomans.”
“This defendant’s predatory behavior shattered the innocence of an unsuspecting child,” said HSI Dallas Special Agent in Charge Lester R. Hayes, Jr. “No amount of prison time can restore what was lost by the victim. Thankfully, due to the collaborative efforts of our law enforcement partners, this defendant will be spending the remainder of his life behind bars.”
“Heinous isn’t a strong enough adjective to describe the crimes that were perpetrated by Mr. Limon-Garcia. He is every law-abiding citizen’s worst nightmare. I am thankful that ATF was able to do a small part to keep this diabolical man behind iron bars for the rest of his life” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
“The defendant received the punishment he deserved,” said United States Attorney Christopher J. Wilson. “After hearing the evidence gathered during a lengthy investigation, the jury rendered its verdicts, and now the judge has handed down appropriate punishment. For years, the defendant terrorized and sexually abused an innocent child, and now he will spend the rest of his life behind bars.”
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the sentencing hearing in Muskogee, Oklahoma. Garcia-Limon will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Benjamin D. Traster represented the United States.
New York Man Sentenced to 10 Years’ Imprisonment for Cocaine TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Esteban Latorre-Cacho, age 38, of Lockport, New York, was sentenced on July 13, 2023, by U.S. District Court Judge Christopher C. Conner, to 10 years’ imprisonment on the charge of possession with intent to distribute more than five kilograms of cocaine.
According to United States Attorney Gerard M. Karam, Latorre-Cacho previously pleaded guilty and admitted to possessing 67 kilograms of cocaine for further distribution. The charge stems from an incident on April 30, 2021, in which members of the Pennsylvania State Police made a traffic stop of a vehicle in Lehigh County. Latorre-Cacho was the sole occupant of the vehicle. A subsequent search of the vehicle resulted in the seizure of 67 kilograms of cocaine, with a street-value of approximately two million dollars, found hidden inside boxes within the vehicle. Further investigation showed that Latorre-Cacho had picked up the boxes containing the cocaine at a location within the Middle District of Pennsylvania.
The investigation was conducted by the Pennsylvania State Police and the Drug Enforcement Administration. 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.
###