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23 August 2023
United States Files Forfeiture Action to Recover Cryptocurrency Traceable to Fraud SchemeRead the Press Release
BOSTON – The United States Attorney’s Office filed a civil forfeiture action to recover cryptocurrency alleged to be proceeds of an investment fraud scheme targeting a Massachusetts resident. The government seeks to forfeit 87,637 Tether (USDT) seized from an account located at Binance, a cryptocurrency exchange and custodian.
In November 2022, an investigation began into a cryptocurrency investment fraud scheme targeting a Massachusetts resident. As alleged in court documents, the individual was tricked, through fraudulent text and WhatsApp messages, into transferring a total of $975,900 from his bank account first into two cryptocurrency exchanges and then from there into a fraudulent cryptocurrency exchange.
From that transfer, the funds, in the form of cryptocurrency, were allegedly transferred through a series of intermediary cryptocurrency addresses. Ultimately, investigators were able to trace some of the funds to an account located at Binance, the contents of which were seized in May 2023.
It is a violation of federal law to use wire communications as part of a scheme to defraud or to obtain money or property by means of false or fraudulent pretenses. The complaint alleges that the seized currency was proceeds of the wire fraud. A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims.
This is the fourth civil forfeiture action the U.S. Attorney’s Office has filed seeking to forfeit cryptocurrency traced to fraud schemes targeting Massachusetts victims.
Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams and business email compromise (BEC) fraud scams – should contact [email protected].
Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement today. The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Matthew M. Lyons of the Asset Recovery Unit.
The details contained in the civil forfeiture complaint are allegations. The United States Attorney’s Office has not filed a corresponding criminal action on the matter.
U.S. Attorney’s Office Charges Ten Defendants in Drug Trafficking ProbeRead the Press Release
CHICAGO — A federal drug trafficking investigation has resulted in charges against ten individuals for allegedly trafficking fentanyl-laced heroin and other drugs on the South Side of Chicago.
The multi-year investigation, led by the DEA Chicago Field Division and the Chicago High Intensity Drug Trafficking Area program, utilized undercover and controlled narcotics purchases, covert surveillance operations, and wiretapped communications to shut down a drug trafficking operation. Criminal complaints filed in federal court in Chicago allege that the defendants were affiliated with the Gangsters Disciples, a Chicago street gang. The traffickers allegedly used a designated cellular telephone to receive and service narcotics orders, with various defendants taking shifts working the phone to distribute narcotics.
Most of the defendants were arrested Tuesday and have begun making initial appearances in U.S. District Court in Chicago. Law enforcement on Tuesday also executed court-authorized searches of multiple locations in Chicago.
The charges and arrests were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the DEA, Nicholas J. Roti, Executive Director of Chicago HIDTA, and Fred Waller, Interim Superintendent of the Chicago Police Department. Valuable assistance was provided by the U.S. Marshals Service. The government is represented by Assistant U.S. Attorneys Alejandro G. Ortega and Edward Liva.
The case is part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles drug trafficking organizations and other criminal networks that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local enforcement agencies.
Three complaints charge ten individuals with federal narcotics violations:
U.S. v. Ware, et al, 23 CR 409
Charged in this federal drug conspiracy are KEVIN WARE, 49, of Chicago, CHRISTOPHER WARE, 45, of Chicago, BRANDAN ALLEN, 31, of Chicago, RICKY WILLIAMS, 37, of Chicago, DARREL BROOKS, 51, of Chicago, LEROY PRESLEY, 49, of Riverdale, Ill., and ERNEST ROWLETTE, 49, of Chicago.
The charges allege that Kevin Ware led a trafficking organization and oversaw its operation, including managing the potency and supply of the narcotics it sold. He allegedly held discussions with dealers regarding best practices for interacting with customers and what types of deals to offer them. Kevin Ware also allegedly obtained information from his dealers about their interactions with law enforcement. Soon after two law enforcement seizures of suspected narcotics last year, Williams and other dealers reported the incidents to Kevin Ware, the complaint states.
The conspirators allegedly utilized a residence in Chicago’s West Pullman neighborhood as a “stash house” to store narcotics and cash. In 2021 and 2022, undercover law enforcement officers and cooperating sources made approximately 44 controlled purchases of narcotics from members of Kevin Ware’s organization, the charges allege.
U.S. v. Pearson, et al, 23 CR 422
Kevin Ware is also charged in a second federal drug case, along with MICHAEL PEARSON, 49, and JAMIE PEARSON, 46, both of Chicago.
According to the charges, the defendants distributed fentanyl and fentanyl-laced heroin. Michael Pearson allegedly conducted several drug deals in Chicago’s Pullman and West Roseland neighborhoods. One of the alleged deals occurred in May 2021 in a delicatessen in the 10700 block of South Michigan Avenue, where Michael Pearson arranged for the sale of heroin mixed with fentanyl and methamphetamine, the complaint states. Unbeknownst to Michael Pearson, the buyer was cooperating with law enforcement, the complaint states.
U.S. v. Allen, 23 CR 408
Charged with distributing fentanyl and fentanyl-laced heroin is REGINALD ALLEN, 22, of Chicago. Reginald Allen allegedly sold the drugs on the South Side of Chicago on several occasions in 2021 and 2022.
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The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Allen complaint Pearson et al complaint Ware et al complaintTroy Woman Pleads Guilty to Nationwide Marijuana Trafficking and Money Laundering ConspiraciesRead the Press Release
ALBANY, NEW YORK – Jazell Shuler, age 35, of Troy, New York, pled guilty today to conspiring to distribute marijuana and launder money.
United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Chief Daniel DeWolf of the Troy Police Department; and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
In pleading guilty, Shuler admitted to being a member of a marijuana and tetrahydrocannabinols (THC) trafficking organization that cultivated marijuana on a commercial scale in Fresno, California, and shipped thousands of kilograms of marijuana and THC from Fresno to locations throughout the United States, including the Capital Region. Shuler also admitted to laundering marijuana and THC proceeds for the organization.
The packages of marijuana were shipped through UPS and FedEx from a shipping store in Fresno, Fast Pack & Ship, by Dwight A. Singletary II, aka “Nutt” and “Mike Jones,” and McKenzie Merrialice Coles, aka “Kenzie.” At the direction of David Singletary, aka “DB,” Shuler received packages of marijuana at her and David Singletary’s respective residences in Troy and notified David Singletary when the packages arrived. Shuler also packaged marijuana for sale.
The marijuana was sold out of “knock spots” in the Capital Region, which advertised various strains and quantities of marijuana and THC “edibles” for sale, with prices, on white boards. The defendant worked at the “knock spots” and updated the information on the white board for David Singletary. In addition to working at the “knock spots,” Shuler sold marijuana.
The defendant also laundered marijuana and THC proceeds for the organization by sending $13,500 in money transfers purchased with cash drug proceeds from Troy to six people in Fresno, Windsor, and Merced, California, including Nehemiah Fane, aka “Neil,” and James Tyrell Daniels, aka “Red” and “Ghost.” David Singletary provided Shuler with the cash drug proceeds for the money transfers.
Shuler faces up to 20 years in prison on each of the two counts to which she pled guilty, conspiring to distribute marijuana and conspiring to commit money laundering; fines of up to $1 million and $500,000, respectively, on each count; and a term of supervised release of between 3 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Shuler was charged in an indictment with Dwight and David Singletary, McKenzie Coles, Fane, Daniels and 18 other people charging marijuana distribution and money laundering conspiracies, firearms offenses, and other crimes. Dwight Singletary, David Singletary, McKenzie Coles, Fane, and Daniels have pled not guilty, and are presumed innocent unless and until proven guilty. The charges in the indictment are merely accusations.
In addition to Shuler, five other defendants, Rosemary Coles, Latrice Mumphrey, Sammy Olague, Victor Turner, and Kristle Walker, previously pled guilty and are pending sentencing.
The ATF, DEA, Troy Police Department, and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Tornado Cash Founders Charged with Money Laundering and Sanctions ViolationsRead the Press Release
A Russian national and a Washington man were charged today with conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money transmitting business.
According to the indictment, unsealed today in the Southern District of New York, Roman Storm, 34, of Auburn, Washington, and Roman Semenov, 49, of Russia, created, operated, and promoted Tornado Cash, a cryptocurrency mixer that facilitated more than $1 billion in money laundering transactions, and laundered hundreds of millions of dollars for the Lazarus Group, the sanctioned North Korean cybercrime organization. Storm was arrested today in the state of Washington and will be presented later today in the Western District of Washington.
“As alleged in the indictment, the defendants operated a $1 billion scheme designed to help other criminals launder and conceal funds using cryptocurrency, including by laundering hundreds of millions of dollars on behalf of a state-sponsored North Korean cybercrime group sanctioned by the U.S. government,” said Attorney General Merrick B. Garland. “These charges should serve as yet another warning to those who think they can turn to cryptocurrency to conceal their crimes and hide their identities, including cryptocurrency mixers: it does not matter how sophisticated your scheme is or how many attempts you have made to anonymize yourself, the Justice Department will find you and hold you accountable for your crimes.”
“Today’s announcement should remind criminal organizations everywhere in the world that they are neither untraceable nor anonymous,” said FBI Director Christopher Wray. “You can’t hide from us behind a keyboard — whether you’re a hacker or facilitator. Those charged today engaged in a conspiracy to launder money for cybercriminals, including for a North Korean cybercrime organization seeking to evade sanctions. As we have with this operation, the FBI is going to keep dismantling the infrastructure used by cyber criminals to commit and profit from their crimes, and holding anyone who assists those criminals accountable.”
“Cryptocurrency mixers have become the go-to method for criminals to conceal their ill-gotten gains. As alleged, the defendants operated Tornado Cash as a safe haven for criminal actors to obfuscate the trail of funds tied to their criminal activities, such as computer hacking and wire fraud,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Criminal Division will continue to prioritize the investigation and prosecution of those who seek to criminally exploit the cryptocurrency ecosystem.”
“As stated in the indictment, the defendants’ cryptocurrency service facilitated more than $1 billion in illicit transactions and they knowingly allowed a globally sanctioned cybercrime group to launder hundreds of millions of dollars on behalf of the North Korean regime,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department – alongside our domestic and international law enforcement partners – will use every tool in our arsenal to pursue and dismantle the criminal networks that enable U.S. sanctions violations wherever they operate.”
“As alleged, Tornado Cash was an infamous cryptocurrency mixer that laundered more than one billion dollars in criminal proceeds and violated U.S. sanctions,” said U.S. Attorney Damian Williams for the Southern District of New York. “Roman Storm and Roman Semenov allegedly operated Tornado Cash and knowingly facilitated this money laundering. While publicly claiming to offer a technically sophisticated privacy service, Storm and Semenov in fact knew that they were helping hackers and fraudsters conceal the fruits of their crimes. Today’s indictment is a reminder that money laundering through cryptocurrency transactions violates the law, and those who engage in such laundering will face prosecution.”
Storm and Semenov were two of the three founders of the Tornado Cash service, a cryptocurrency mixer that allowed its customers to engage in untraceable transfers of cryptocurrency. The defendants and their co-conspirators allegedly created the core features of the Tornado Cash service, paid for critical infrastructure to operate the Tornado Cash service, promoted the Tornado Cash service, and made millions of dollars in profits from operating the Tornado Cash service. The Tornado Cash service advertised to customers that it provided untraceable and anonymous financial transactions, and Storm and Semenov chose not to implement know-your customer or anti-money laundering programs as required by law. As a result, the Tornado Cash service was used to launder more than $1 billion in criminal proceeds. Storm and Semenov allegedly knew about these money laundering transactions and received complaints and requests for help from victims of hacking and other cybercrimes. However, they refused to implement any controls and continued to operate the Tornado Cash service and facilitate these money laundering transactions.
In April and May 2022, the Tornado Cash service was allegedly used by the Lazarus Group, a sanctioned North Korean cybercrime organization, to launder hundreds of millions of dollars in hacking proceeds. Storm and Semenov allegedly knew that the Tornado Cash service they were operating was engaging in these sanctions-violating transactions. They implemented a change in the service so they could make a public announcement that they were compliant with sanctions, but in their private chats they agreed that this change would be ineffective. They then continued to operate the Tornado Cash service and facilitate hundreds of millions of dollars in further sanctions-violating transactions, helping the Lazarus Group to transfer criminal proceeds from a cryptocurrency wallet that had been designated by the Office of Foreign Assets Control (OFAC) as blocked property.
Storm and Semenov are each charged with one count of conspiracy to commit money laundering and one count of conspiracy to violate the International Economic Emergency Powers Act, each of which carries a maximum penalty of 20 years in prison. They are also each charged with conspiracy to operate an unlicensed money transmitting business, which carries a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and the IRS-Criminal Investigation are investigating the case. The Justice Department’s Office of International Affairs provided valuable assistance.
Assistant U.S. Attorneys Thane Rehn and Benjamin Gianforti for the Southern District of New York, and Trial Attorneys Jacques Singer-Emery and Garrett Coyle of the Justice Department's National Security Division are prosecuting the case in partnership with the Criminal Division’s National Cryptocurrency Enforcement Team (NCET).
The NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within the Criminal Division’s Computer Crime and Intellectual Property Section, the NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the Department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tornado Cash Founders Charged with Money Laundering and Sanctions ViolationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”), Nicole M. Argentieri, the Acting Assistant Attorney General of the Justice Department’s Criminal Division, Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, James Smith, the Assistant Director in Charge of the New York Field Office of the FBI, and Bryant Jackson, the Special Agent in Charge of the Cincinnati Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an Indictment charging ROMAN STORM and ROMAN SEMENOV with conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money transmitting business. The charges in the Indictment arise from the defendants’ alleged creation, operation, and promotion of Tornado Cash, a cryptocurrency mixer that facilitated more than $1 billion in money laundering transactions and laundered hundreds of millions of dollars for the Lazarus Group, the sanctioned North Korean cybercrime organization. ROMAN STORM was arrested today in the state of Washington and will be presented today in the U.S. District Court for the Western District of Washington. The case has been assigned to U.S. District Judge Katherine Polk Failla. SEMENOV remains at large.
U.S. Attorney Damian Williams said: “As alleged, Tornado Cash was an infamous cryptocurrency mixer that laundered more than $1 billion in criminal proceeds and violated U.S. sanctions. Roman Storm and Roman Semenov allegedly operated Tornado Cash and knowingly facilitated this money laundering. While publicly claiming to offer a technically sophisticated privacy service, Storm and Semenov in fact knew that they were helping hackers and fraudsters conceal the fruits of their crimes. Today’s indictment is a reminder that money laundering through cryptocurrency transactions violates the law, and those who engage in such laundering will face prosecution.”
Attorney General Merrick B. Garland said: “As alleged in the indictment, the defendants operated a $1 billion scheme designed to help other criminals launder and conceal funds using cryptocurrency, including by laundering hundreds of millions of dollars on behalf of a state-sponsored North Korean cybercrime group sanctioned by the U.S. government. These charges should serve as yet another warning to those who think they can turn to cryptocurrency to conceal their crimes and hide their identities, including cryptocurrency mixers: it does not matter how sophisticated your scheme is or how many attempts you have made to anonymize yourself, the Justice Department will find you and hold you accountable for your crimes.”
FBI Director Christopher A. Wray said: “Today’s announcement should remind criminal organizations everywhere in the world that they are neither untraceable nor anonymous. You can’t hide from us behind a keyboard — whether you’re a hacker or facilitator. Those charged today engaged in a conspiracy to launder money for cybercriminals, including for a North Korean cybercrime organization seeking to evade sanctions. As we have with this operation, the FBI is going to keep dismantling the infrastructure used by cyber criminals to commit and profit from their crimes, and holding anyone who assists those criminals accountable.”
Acting Assistant Attorney General Nicole M. Argentieri said: “Cryptocurrency mixers have become the go-to method for criminals to conceal their ill-gotten gains. As alleged, the defendants operated Tornado Cash as a safe haven for criminal actors to obfuscate the trail of funds tied to their criminal activities, such as computer hacking and wire fraud. The Criminal Division will continue to prioritize the investigation and prosecution of those who seek to criminally exploit the cryptocurrency ecosystem.”
Assistant Attorney General Matthew G. Olsen said: “As stated in the indictment, the defendants’ cryptocurrency service facilitated more than $1 billion in illicit transactions, and they knowingly allowed a globally sanctioned cybercrime group to launder hundreds of millions of dollars on behalf of the North Korean regime. The Justice Department – alongside our domestic and international law enforcement partners – will use every tool in our arsenal to pursue and dismantle the criminal networks that enable US sanctions violations wherever they operate.”
FBI Assistant Director in Charge James Smith said: “Today’s indictment of Tornado Cash co-founders Roman Storm and Roman Semenov highlights their alleged role in creating a cryptocurrency mixer that ultimately served as a gateway for the laundering of more than $1 billion in criminal proceeds. As alleged, when it became clear that a sanctioned North Korean cybercrime organization was using the platform to launder hundreds of millions of dollars derived from cyber heists, Storm and Semenov turned a blind eye to the illicit activity and made public representations that they were compliant with sanctions laws. Today’s enforcement actions remind the public that the FBI, when faced with illegal activity, is committed to tracing the untraceable, and will remain focused on protecting victims of financial crime wherever those crimes are committed — be it through the traditional banking system or the virtual currency blockchain.”
IRS-CI Special Agent in Charge Bryant Jackson said: “As alleged, Tornado Cash was used to launder over $1 billion. IRS Criminal Investigation’s Special Agents use their financial expertise to follow the flow of cryptocurrency transactions and dismantle major money laundering organizations that try to conceal the criminal source of their funds. Today's indictment is a direct result of our collaboration with our law enforcement partners, both in the U.S. and abroad. Through our work together, those who use deceit and fraud to line their pockets with illegal profits will be held accountable.”
As alleged in the Indictment unsealed in Manhattan federal court and court filings:[1]
ROMAN STORM and ROMAN SEMENOV were two of the three founders of the Tornado Cash service, a cryptocurrency mixer that allowed its customers to engage in untraceable transfers of cryptocurrency. The defendants and their co-conspirators created the core features of the Tornado Cash service, paid for critical infrastructure to operate the Tornado Cash service, promoted the Tornado Cash service, and made millions of dollars in profits from operating the Tornado Cash service. The Tornado Cash service advertised to customers that it provided untraceable and anonymous financial transactions, and STORM and SEMENOV chose not to implement know your customer or anti-money laundering programs as required by law. As a result, the Tornado Cash service was used to launder more than $1 billion in criminal proceeds. STORM and SEMENOV knew about these money laundering transactions and received complaints and requests for help from victims of hacking and other cybercrimes. However, they refused to implement any controls and continued to operate the Tornado Cash service and facilitate these money laundering transactions.
In April and May 2022, the Tornado Cash service was allegedly used by the Lazarus Group, a sanctioned North Korean cybercrime organization, to launder hundreds of millions of dollars in hacking proceeds. STORM and SEMENOV knew that the Tornado Cash service they were operating was engaging in these sanctions-violating transactions. They implemented a change in the service so that they could make a public announcement that they were compliant with sanctions, but in their private chats, they agreed that this change would be ineffective. They then continued to operate the Tornado Cash service and facilitate hundreds of millions of dollars in further sanctions-violating transactions, helping the Lazarus Group to transfer criminal proceeds from a cryptocurrency wallet that had been designated by the Office of Foreign Assets Control as blocked property.
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ROMAN STORM, 34, of Auburn, Washington, and ROMAN SEMENOV, 35, a Russian national, are each charged with one count of conspiracy to commit money laundering and one count of conspiracy to violate the International Economic Emergency Powers Act, which each carry a maximum sentence of 20 years in prison. They are also each charged with conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the investigative work of the FBI and IRS-CI. He also acknowledged the assistance of the Justice Department’s Office of International Affairs. Mr. Williams further thanked the Joint Chiefs of Global Tax Enforcement (“J5”) for their assistance in the investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit and the Criminal Division’s National Cryptocurrency Enforcement Team (“NCET”). Assistant U.S. Attorneys Thane Rehn and Benjamin Gianforti are in charge of the prosecution.
The NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within the Criminal Division’s Computer Crime and Intellectual Property Section, the NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the Department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
The allegations in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Storm and Semenov IndictmentThree Men Sentenced to Federal Prison After Armed Robbery of a Columbia Postal CarrierRead the Press Release
COLUMBIA, SOUTH CAROLINA —Don Everett Peters, III, a/k/a “Pop,” 21, and Shylik Lamont Smalls, a/k/a “Mitch,” 22, both of Columbia, and Elijah Rasue Dewayne Ellis, a/k/a “Smoke,” a/k/a “Black,” 21, of Valdosta, Georgia, have each been sentenced to federal prison for their roles in the March 17, 2022, armed robbery of a United States Postal Letter Carrier in downtown Columbia.
Peters, Smalls, and Ellis each pleaded guilty to conspiracy to commit armed robbery of a United States Postal Letter Carrier, assault/armed robbery of a United States Postal Letter Carrier, and theft/possession of a United States Postal arrow key. Peters and Smalls also pleaded guilty to theft/possession of United States mail.
Evidence presented in court showed that on the afternoon of March 17, 2022, after surveilling another postal carrier in the Hollywood-Rose Hill/Rosewood area of Columbia, the trio decided to rob a letter carrier making his rounds on Hollywood Drive. While Peters waited in the getaway car, Smalls and Ellis—while wearing masks—approached the carrier. Ellis pointed a gun at the carrier and demanded his keys. Peters then picked up the two co-conspirators and they fled the area.
After an extensive investigation, including review of numerous surveillance cameras and interviewing witnesses, law enforcement authorities linked the getaway vehicle to Peters. After a review of Peters’ prior encounters with law enforcement and cell phone records, postal inspectors were able to link Smalls to Peters. They determined that Smalls matched the description of one of the robbers, that both Smalls and Peters had access to firearms, and that Smalls was in possession of clothing matching the description of the clothing worn by one of the robbers.
Search warrants were obtained for Peters’ and Smalls’ apartments and vehicles and executed on May 4, 2022. Smalls was found with the stolen arrow key in his pants pocket. Investigators also recovered stolen mail, check making materials, several electronic devices such as cell phones and laptops, and two privately made firearms, which are commonly known as “ghost guns.” One ghost gun was found in Peters’ bedroom and the other in Smalls’ bedroom. Inside Peters’ car, Inspectors found documentation belonging to Ellis.
After waiving their rights, both Peters and Smalls admitted to being involved in the robbery, along with Ellis. Peters and Smalls were placed under arrest and a warrant was issued for Ellis. On May 31, 2022, Ellis was arrested in Valdosta, Georgia, where he was found in possession of a “ghost gun” and a quantity of marijuana. After advice of rights, Ellis admitted to being involved in the robbery with Peters and Smalls. All three have been in custody since their 2022 arrests.
“Make no mistake, we will bring all of our federal resources to bear when our postal carriers are robbed,” said U.S. Attorney Adair F. Boroughs, “Postal carriers are an integral part of our communities, and we are thankful for the residents who provided critical information as a part of this investigation and those who stood by the carrier at the sentencing hearing.”
“The sentences imposed in this case exemplify the unending dedication of the U.S. Postal Inspection Service to protect the employees of the United States Postal Service. When our employees are victims of robberies and assaults, we do not stop until we identify those responsible,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division of the United States Postal Inspection Service. “We extend our appreciation to the U.S. Attorney’s Office and our law enforcement partners for their support in this case.”
United States District Judge Mary Lewis Geiger sentenced Peters to 7 years in prison. Smalls and Ellis were each sentenced to 6 years in prison. Following their prison terms, each will be on supervised release for 3 years. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the United States Postal Inspection Service and the Columbia Police Department. Additionally, the United States Marshals Fugitive Task Force and the Lowndes County, Georgia, Sheriff’s Office assisted in the arrest of Ellis. Assistant U.S. Attorneys Stacey D. Haynes and Lamar Fyall prosecuted the case.
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Three Charged in Fentanyl Overdose in St. Francois County JailRead the Press Release
ST. LOUIS – Three people have been indicted in U.S. District Court in St. Louis on drug charges and have been accused of helping smuggle the drugs that killed a St. Francois County jail detainee in 2021.
Timothy L. Noll, 34, Garry “Will” Triplett, 36, and Alissa R. Hahn, 28, were indicted August 9 on a charge of conspiracy to distribute a controlled substance. Triplett and Hahn are also facing a charge of distribution of a controlled substance and Noll is facing a charge of distributing a controlled substance resulting in death.
The indictment accuses Triplett of providing controlled substances to Hahn on July 31, 2021. Hahn and others distributed drugs to Noll the next day and on August 2, 2021, Noll provided drugs to the detainee who died as a result, according to the indictment.
A detention motion says Noll was captured on a jail video call coordinating with a drug supplier and instructing a family friend how to conceal narcotics in the spine of a bible. Noll’s cellmate later died of a fentanyl overdose within feet of the bible, according to the detention motion and statements made in court. A motion regarding Triplett says he was caught on video on July 31, 2021 supplying capsules and a bag of a crystal substance that were later hidden in the bible.
Triplett made his first appearance in court Wednesday, where he pleaded not guilty to the charges. Hahn pleaded not guilty August 17 and Noll pleaded not guilty the next day. Triplett and Noll waived detention hearings and will be held in jail until trial.
“We are working with the Missouri State Highway Patrol, who investigate overdose deaths of detainees in correctional institutions, and we will prosecute these cases,” said U.S. Attorney Sayler A. Fleming. “If convicted in federal court, those who supply drugs that kill could spend the rest of their lives in prison.”
The charges against Noll and Triplett carry a potential penalty of a mandatory life sentence in prison. Hahn’s charges are punishable by up to 20 years in prison.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the Missouri State Highway Patrol. Assistant U.S. Attorney Zachary Bluestone is prosecuting the case.
Taos Woman Sentenced to 5 Years Supervised Probation and Community Service for Assault Resulting a Serious Bodily InjuryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Kylie Lujan was sentenced to 5 years supervised probation and a period of community service. Lujan, 26, of Taos, New Mexico, and an enrolled member of the Taos Pueblo, pled guilty to assault resulting in bodily injury on March 30, 2023.
According to court documents, on March 25, 2022, Lujan’s sister, Jane Doe, asked her to spend the night at her house and watch their grandmother, who is wheelchair bound and on dialysis, the next day. When Lujan’s sister picked her up, she suspected that Lujan was intoxicated. Lujan later admitted that she drank a pint of Jack Daniels before Jane Doe picked her up.
Later that night, Lujan’s sister expressed her disappointment in Lujan’s failure to “step up” and assist the family with their grandmother’s care. Without hesitation, Lujan wrapped her hands around her sister’s neck, then choke slammed her to the ground before punching her “five to six” times in the face with a closed fist. When their grandmother attempted to intervene, Lujan pushed her away and fled the scene. The assault resulted in multiple fractures that required Jane Doe be emergency airlifted to UNMH for facial reconstructive surgery.
Federal prosecutors made the recommendation for supervised release instead of jail time based on Lujan’s complete compliance with the terms of her pretrial release, lack of criminal history, and with the support of her family, including Jane Doe.
The Taos Pueblo Department of Public Safety investigated this case. Assistant United States Attorney Matthew McGinley is prosecuting the case.
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Sunnyside Man Sentenced to Ten Years Imprisonment for Selling Drugs Within the Boundaries of the Yakama NationRead the Press Release
Yakima, Washington – On August 22, 2023, United States District Judge Mary K. Dimke sentenced Jesse Robledo, 36, of Sunnyside, Washington, to 10 years in federal prison after his guilty plea to Distribution of Fifty Grams or More of Actual Methamphetamine. Robledo will also begin five years of court supervision after he is released from custody.
According to information disclosed during court proceedings – between May 7, 2021, and July 14, 2021 – on three separate occasions, Robledo, who is not a Native American, entered the Yakama Nation and sold methamphetamine to a confidential informant within the boundaries of the Yakama Nation. At the time of this offense, Robledo already had a lengthy criminal history. He previously had been convicted of bail jumping, residential burglary, first degree identity theft, first degree theft, forgery, second degree unlawful possession of a firearm, and felon in possession of a firearm and ammunition.
United States Attorney Vanessa R. Waldref, the chief federal law enforcement officer for the Eastern District of Washington, commended the efforts of the FBI Task Force in targeting individuals selling drugs within the boundaries of the Yakama Nation. “The United States Attorney’s Office will aggressively prosecute individuals who are selling drugs within the boundaries of the Yakama Nation. When dangerous narcotics enter our communities, we see an increase in violent crime. Holding individuals accountable who are dealing drugs and removing these narcotics from our streets will make all of our neighborhoods and communities safer and stronger.”
United States Attorney Waldref previously had announced in May 2022 that the FBI increased resources to further address violent crime in Yakima County, within the boundaries of the Yakama Nation. The purpose of this FBI Task Force is to disrupt gang activity, weapons trafficking, narcotics distribution, and to eradicate violent crime in Eastern Washington.
Following the sentencing, Yakima County Sheriff Robert Udell stated, “The FBI Task Force once again proved its effectiveness in combating illegal drugs and violent crime in Yakima County. In this case, FBI special agents and local law enforcement removed a career criminal from the Yakama Nation, making a huge impact on the safety of everyone living within the Yakama Nation.”
“Mr. Robledo knew he was distributing these potentially deadly drugs on the Yakama Indian Reservation” said Richard A. Collodi, Special Agent in charge of the FBI’s Seattle field office. “The work of our investigators and partners has resulted in a 10-year prison sentence and is another step in our effort at making the reservation a safer place.”
The case was investigated by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Tom Hanlon.
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South Carolina Man and Woman Plead Guilty to Hate Crime and Conspiracy for Bias-Motivated Armed Robberies Targeting Hispanic VictimsRead the Press Release
A South Carolina man and woman pleaded guilty in U.S. District Court in Columbia, South Carolina, to a federal hate crime, conspiracy and other charges.
According to court documents, beginning in January 2021 and continuing through February 2021, Gabriel Brunson, 20, and Sierra Fletcher, 33, both of Columbia, conspired to target people the defendants identified as Mexican or Hispanic at places of public accommodation, including gas stations and grocery stores. After identifying these targets, the defendants would rob their victims at gunpoint. The defendants targeted their victims because of their victims’ race and national origin.
Both defendants admitted their involvement in a Jan. 22, 2021, armed robbery in which the defendants followed their victims from a grocery store and restaurant to their home, and then robbed the victims at gunpoint, stealing cash and a cellphone. Fletcher admitted to being involved in several other robberies on Jan. 30, 2021, including a carjacking and a home invasion robbery of other Hispanic victims. The defendants admitted to using guns during their crimes.
The information to which Brunson and Fletcher pleaded guilty charges each of them with one hate crime for the Jan. 22, 2021, robbery of Hispanic victims. The information further charges Brunson and Fletcher with conspiracy, Hobbs Act robbery and carrying firearms in connection with those crimes.
“These defendants targeted Hispanic victims for violent acts of armed robbery because of their race, national origin and perceived vulnerability,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “No person should have to fear for their lives or property because of their race or national origin. The Justice Department will continue to vigorously prosecute those who commit bias-motivated crimes.”
“Prosecuting civil rights crimes is a priority for our office,” said U.S. Attorney Adair Boroughs for the District of South Carolina. “Federal law recognizes that crimes targeting people of a particular race or national origin is particularly egregious, and we stand ready to enforce the national hate crimes law here in South Carolina.”
“These were not crimes of opportunity. The defendants systematically robbed at gunpoint people whom they identified as Mexican or Hispanic,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Hate motived violence has no place in our country. The FBI will continue to aggressively investigate these crimes and promote a culture of safety and inclusivity in all the communities we serve.”
The plea agreements require both defendants to pay restitution to all victims. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.
The FBI Columbia Field Office investigated the case, with assistance from the Richland County and Lexington County Sherriff’s Departments.
Assistant U.S. Attorneys Ben Garner and Brook Andrews for the District of South Carolina and Trial Attorney Andrew Manns of the Civil Rights Division’s Criminal Section are prosecuting the case.
Sex offender sentenced for illegally being in US…for the 9th timeRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old man illegally present in the United States has been sentenced for returning to the United States without permission, announced U.S. Attorney Alamdar S. Hamdani.
Elvis Cristian Hernandez-Ayala pleaded guilty June 1.
U.S. District Judge David S. Morales has now ordered Hernandez-Ayala to serve 37 months in federal prison. He was also on supervised release for a prior illegal re-entry conviction and also received 12 months for that violation, six months to be served consecutively. Not a U.S. citizen, he is expected to face removal proceedings following his total 43-month-term of imprisonment. At the hearing, the court heard additional evidence regarding Hernandez-Ayala’s frequent illegal re-entries and his troubling criminal history, including a prior conviction for sexual assault in which Hernandez-Ayala had raped another undocumented alien in a stash house.
On April 5, Hernandez-Ayala attempted to circumvent the Border Patrol (BP) Checkpoint near Falfurrias. Authorities found him and three others walking through the brush on a ranch.
The investigation revealed he had been previously removed from the United States eight times following his convictions such as felony possession of a controlled substance, driving while intoxicated and sexual assault.
Hernandez-Ayala will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation. Assistant U.S. Attorney Barbara J. De Pena prosecuted the case.
Second Providence Man Admits to Assaulting U.S. Postal CarrierRead the Press Release
PROVIDENCE , RI – A Providence man on Tuesday admitted to a federal judge that he assaulted a U.S. Postal Service letter carrier purportedly because of a near collision between the man’s car with a mail delivery truck as they passed on a tightly packed Providence street, announced United States Attorney Zachary A. Cunha.
Branley Ferreras-Severino, 22, admitted that he repeatedly punched the letter carrier when the worker returned to his truck after having delivered packages to a nearby house. Ferreras-Severino admitted that he was standing by the mail truck and said, “You think it’s funny? You almost hit me. You wanna get popped?” The carrier took that to mean being shot with a gun.
Ferreras- Severino admitted that a passenger in his car, Ismael Colon-Pena, 19, of Providence, joined him in assaulting the Postal employee. The mail carrier attempted to fend off the attack and then ran from the area while dialing 911 for help. He provided investigators with the license plate number of the car driven by Ferreras-Severino, which they learned was registered to Ferreras-Severino’s mother.
As part of the investigation, U.S. Postal Service Inspectors obtained security videos from a nearby residence that depicted the attack. The Postal carrier identified both defendants from photographs shown to him by investigators.
Ferreras-Severino pleaded guilty on Tuesday to a charge of assault of a federal employee. He is scheduled to be sentenced on November 22, 2023. Colon-Pena pleaded guilty to the same charge on February 14, 2023. At sentencing on May 18, 2023, he was entered into the Deferred Sentencing Program for a term of 12 months.
As a result of their convictions, both men, Dominican Republic nationals, face deportation proceedings.
The case is being prosecuted by Assistant United States Attorney Zechariah Chafee.
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Savannah man convicted at trial for armed bank robberyRead the Press Release
SAVANNAH, GA: A Chatham County man has been convicted after trial for the robbery of a Savannah bank.
Omar Lockhart, 35, of Savannah, was found guilty after a two-day trial in U.S. District Court of Bank Robbery, a charge that subjects Lockhart to a statutory penalty of up to 20 years in prison, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia.
In addition, the jury found Lockhart guilty of Using, Carrying, or Possessing a Firearm in Relation to a Crime of Violence, which subjects him to an additional seven years in prison consecutive to the sentence for bank robbery. The jury also found Lockhart guilty of Possession of a Firearm by a Convicted Felon.
There is no parole in the federal system.
“Omar Lockhart terrorized the employees of a business by brandishing a gun during a robbery,” said U.S. Attorney Steinberg. “We commend our law enforcement partners for their outstanding work in safely bringing him to justice.”
As described at trial, Lockhart entered the Synovus Bank on Paulsen Street in Savannah on March 7, 2022, produced a pistol, and pointed it at a teller. He declared he was robbing the bank and handed grocery bags to the teller, demanding the money in her drawer. He then took the money and left the bank, telling everyone to “have a nice day.”
Savannah Police officers and the FBI later located Lockhart at a Savannah hotel where he had paid cash to rent a room and arrested him after a brief standoff with the SWAT team.
Lockhart remains in custody of the U.S. Marshals Service, and U.S. District Court Judge William T. Moore Jr. will schedule sentencing following completion of a pre-sentence investigation by U.S. Probation Services.
“No one should ever be terrorized physically or emotionally, like the victims in this armed robbery, simply because they work at a business or patronize that business,” said FBI Savannah RA Supervisory Senior Resident Agent Will Clarke. “We are committed to keep our communities safe from violence and seek justice for the victims of these crimes.”
The case was investigated by the Chatham County Police Department, the Savannah Police Department, and the FBI, and prosecuted for the United States by Assistant U.S. Attorneys Bradley R. Thompson and John P. Harper III.
Rhode Island Attorney Pleads Guilty to Federal Wire Fraud, Tax Evasion ChargesRead the Press Release
PROVIDENCE, RI – Rhode Island personal injury attorney Peter P.D. Leach on Tuesday admitted to a federal judge that he conducted a Ponzi scheme to defraud clients by misappropriating over $500,000 in client settlement funds; he also admitted that he took evasive steps to conceal his ill-gotten gains from the IRS while failing to pay more than $250,000 in taxes, announced United States Attorney Zachary A. Cunha.
In pleading guilty to charges of wire fraud and tax evasion, Leach admitted that he forged client signatures and deposited client settlement checks into his attorney IOLTA account, using those funds to pay personal expenses and to repay earlier clients whose funds he had embezzled. To prolong his scheme, Leach repeatedly made false representations to clients about the status of their cases, and told them that he would pay their medical expenses and other bills with settlement funds he had received.
An investigation by the Rhode Island State Police Financial Crimes Unit and Internal Revenue Service - Criminal Investigation determined that Leach’s criminal activity resulted in losses to clients of more than $250,000.
Leach also admitted that from 2014-2019, he took multiple steps to conceal his gains from the IRS, including by making false statements on IRS forms regarding his assets; making false statements to IRS Revenue officers about his ability and willingness to pay his taxes and about his withdrawal of over $540,000 of cash from his IOLTA accounts for payment of personal expenses; and by transferring money from his client account to the account of family members to make personal payments.
The investigation determined that Leach failed to pay more than $250,000 in taxes.
Leach is scheduled to be sentenced on January 4, 2024. The defendant’s sentences will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney Sandra R. Hebert and Denise Barton.
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Repeat offender imprisoned for having sadomasochistic child pornography imagesRead the Press Release
GALVESTON – A 71-year-old Pearland resident has been sent back to prison for receipt and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Dan McClure pleaded guilty May 17.
U.S. District Judge Jeffrey Brown has now ordered McClure to serve 262 and 240 months for the receipt and possession convictions, respectively. They will run concurrently for a total 262-month-term of imprisonment. At the hearing, the court heard evidence that McClure has had a sexual interest in children since the late 1980s. This led him to not only sexually abuse at least three minor females, but collect child pornography over the last two decades. McClure was further ordered to serve the rest of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
The investigation began when authorities learned of an individual who had uploaded a child pornography image. They determined the owner of the IP address associated with it was a registered sex offender living in Pearland identified as McClure.
Law enforcement executed a search warrant at his residence and seized numerous devices, including one McClure had hidden in the ceiling. Forensic examination revealed two of the devices contained child pornography. They ultimately found a total of 831 images of child pornography, 736 of which contained prepubescent minors. Approximately 100 included sadomasochistic conduct.
McClure will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the Houston Metro Internet Crimes Against Children Task Force.
Assistant U.S. Attorneys Sherri L. Zack and Kimberly Ann Leo are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Recidivist Sex Offender Sentenced to 10 Years for Possession of Child PornographyRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Richard Crisman was sentenced to 10 years in federal prison. Crisman, 39, of Albuquerque, pled guilty to possession of child pornography on April 12, 2023. This was Crisman’s second conviction for possession of child pornography. He previously pled guilty to receipt of a visual depiction of minor engaged in sexually explicit conduct on Feb. 24, 2012, and was sentenced to 97 months in federal prison followed by 25 years of supervised release.
According to court documents, on April 7, 2021, during a routine field visit to Crisman’s residence in Rio Rancho, the US Probation Officer noticed an unauthorized USB device attached to his computer and confiscated the device. A search of the device and Crisman’s other devices revealed thousands of images and videos of children under the age of 18 engaging in sex acts. When questioned, Crisman admitted to downloading the Child Sexual Abuse Material.
Upon his release from prison, Crisman will be subject to lifetime supervised release.
The FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Anderson C. Hatfield is prosecuting the case.
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Readout from United States Attorney Alexander M.M. Uballez’s Violent Crime Listening Session with Social Justice AdvocatesRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and his staff met with social justice advocates on August 1 at the Main Public Library to discuss violent crime. Baruch Campos, Program Director for Together for Brothers, Starlyn Brown and Karen Douglas from the League of Women Voters of Central New Mexico, and Jack Champagne, Program and Legal Director from the New Mexico Black Leadership Council, presented statements. This was the fourth listening session held with community members this summer.
United States Attorney Uballez opened the session by explaining that the Attorney General directed United States Attorney’s Offices to focus on addressing violent crime through intervention and outreach efforts. Participants described how crime at bus stops and on buses reflects a larger issue with guns, drugs and violent crime in Albuquerque. Others described how the negative perception of the city and law enforcement in the community and the media, whether accurate or inaccurate, produces an amount of fear and divisiveness which is disproportionate to the actual circumstances in the city. Participants agreed that Albuquerque Community Services (ACS) needed more support and resources so that they could expand their scope of work.
Speaking to the challenges facing local organizations who work with the unhoused population to address drugs and violence, Baruch Campos said “we’ve tried working with organizations like HopeWorks and organizations that specialize in [the unhoused population]. The issues there when we tried to do that, they’re just so overwhelmed. There’s a lot, there’s a huge population that is in need. When I think about that, it’s just like what is our city doing to support either those organizations doing that work or to support people directly?”
Jack Champagne agreed, saying “a lot of them are closing down too. I’ve noticed as we’ve kind of gotten on the tail end of COVID funding they just haven’t had any additional support and so they just couldn’t keep the doors open. So now we’re dealing with less of these organizations doing work and the remaining organizations are getting even more that they have to do.”
When asked what concerns participants have about safety and violence in the community, Starlyn Brown and Karen Douglas agreed that gun violence was a general concern, especially the increase in gun violence amongst youth. One participant shared that their family had been directly affected by gun violence and that the case remains unsolved, leaving the family without answers or closure.
When asked what issues the participants see that cause the divide between law enforcement and the community, Champagne observed “my perception of [APD] is that they’re kind of in a bit of a double bind in the sense that they are perceived as both over policing and under policing…. they’re responses are perceived as heavy-handed and occasionally they’re seen as not responding at all.” Champagne continued, “its very easy for a direct response to spiral out of control, especially if we are dealing with new police officers or police officers in a new community or police officers in a community that is not their own... we don’t have a ton police who know what it’s like to live in the [International] District for instance, so it’s very difficult for them to understand what an appropriate response is.”
“…we expected too much of APD.” Brown agreed. “It’s kind of like in the school system where the teachers are babysitters, they’re councilors, they have to, you know, deal with the parents.”
On August 18, 2023, USA Uballez, together with ACS and the Mayor’s Office, announced that the Department of Justice awarded a $2,050,000.00 grant to the Albuquerque Community Safety Department and its Violence Intervention Program. ACS and VIP will use the discretionary earmark funding to expand the scope of their programs. This will enhance service in violence prevention, intervention, and support within Albuquerque. In addition to the expansion of the existing work, this funding can help with exploring the establishment of an Office of Violence Prevention for the City of Albuquerque.
USA Uballez convened this listening session as part of the Department of Justice’s Project Safe Neighborhoods (PSN) Program. USA Uballez previously met with representatives from organizations that serve Albuquerque’s International District, community providers who serve the unhoused population, and addiction and treatment service providers. These sessions were an opportunity for the USA and his staff to recognize the vital role that these leaders, providers and advocates play in our community.
PSN is an evidence-based program proven effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. In New Mexico, the United States Attorney’s Office pursues a community violence intervention approach. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally-based intervention, prevention, and reentry programs for lasting reductions in crime.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The program’s emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
Providence Man Pleads Guilty to Federal Firearm and Drug Trafficking ChargesRead the Press Release
PROVIDENCE , RI – A Providence man admitted to a federal judge today that, in February 2021, while he was detained at the Adult Correctional Institutions (ACI) on unrelated charges, he arranged by telephone with his then girlfriend to locate and sell a firearm that he illegally possessed, and took steps to continue running his established drug trafficking business.
Ronald M. Kramer, 39, admitted that, while confined at the ACI, another inmate told him about an individual outside of the prison who might be interested in purchasing a firearm Kraemer was trying to get rid of. Kramer provided his girlfriend with that information, who then contacted and arranged to meet with the person to sell him the firearm. At that meeting, Kramer’s girlfriend also discussed and arranged to sell the gun buyer methamphetamine pills. Subsequently, she made at least two deliveries of pills to the buyer, totaling more than 244 grams. The person who took possession of the firearm and the drugs was, in fact, a Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) undercover agent.
On April 1, 2021, law enforcement agents executed a search warrant on the girlfriend’s apartment. During the search agents located a safe containing $10,790 in cash which were proceeds of the sale of methamphetamine.
Kramer pleaded guilty today charges of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine; possession with intent to distribute 50 grams or more of methamphetamine; and possession of a firearm by a prohibited person, announced United States Attorney Zachary A. Cunha.
The case is being prosecuted by Assistant United States Attorney Zechariah Chafee.
The matter was investigated by ATF, with the assistance of the Providence Police Department.
United States Attorney Cunha thanks the Rhode Island Department of Corrections, United States Postal Inspection Service, United States Marshals Service, Rhode Island State Police, and the Pawtucket, Providence, Cranston, and North Providence Police Departments for their assistance in the investigation of this case.
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Penfield Man Pleads Guilty to Perjury for Lying Under Oath in George Moses InvestigationRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Francis Cardinell, 77, of Penfield, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to perjury by materially inconsistent statements, which carries a maximum penalty of five years in prison and a fine of $250,000.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that George Moses, former chairman of the board of the Rochester Housing Authority, was convicted and sentenced to serve 78 months in prison for defrauding three organizations, including the Rochester Housing Charities. In April 2019, Cardinell, owner of Akwasasne Construction, a general contracting firm in Rochester, was interviewed as a witness in connection with the investigation. When asked about a $63,000 contract for boiler work to be performed by his company at the Rochester Housing Charities, Cardinell advised that he paid a cumulative amount of more than $20,000 in cash to Moses as kickbacks related to this contract. Cardinell also stated that he gave Moses $14,000 in cash out of a payment of $28,000; $7,500 in cash out of a payment of approximately $18,000; and another $3,500 in cash out of an $8,000 payment he received, for a total of approximately $25,000 in kickbacks. However, during the federal trial of George Moses, while under oath on the witness stand, Cardinell testified on cross-examination that he had lied about the kickback scheme and that he never made payments to Gorge Moses in exchange for contracts for his company.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the Department of Housing and Urban Development, under the direction of Special Agent-in-Charge Christina D. Scaringi, and Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge.
Sentencing is scheduled for December 18, 2023, before Judge Wolford.
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Passenger vessel operator convicted of operating illegal charter cruise businessRead the Press Release
GALVESTON, Texas - A 66-year-old Seabrook man has pleaded guilty to a violation of captain of the port order in connection with his illegal charter cruise business, announced U.S. Attorney Alamdar S. Hamdani.
Gordon Johnson admitted to operating the MV SPANISH PRINCESS without complying with an order of the highest ranking U.S. Coast Guard (USCG) officer in the Houston-Galveston area. Johnson made false statements to authorities claiming he did have paying passengers on his ship. He also instructed passengers, one of whom was a police officer, to inform USCG personnel they were not paying passengers.
“The Coast Guard Investigative Service (CGIS) is firmly committed to partnering with law enforcement agencies to identify and stop those who pose a hazard to the boating public,” said Special Agent in Charge Brian Jeanfreau, CGIS Gulf Region. “Ensuring mariners are fully qualified to safely operate passenger vessels is of upmost importance to the USCG.”
As part of his plea, Johnson also admitted he engaged in another scheme in which he took money from a couple for a trip that never occurred. The couple paid him $20,000 to transport them on the MV SPANISH PRINCESS to Roatan, Honduras, where they were going to live. The trip did not happen, and Johnson only returned $1,000 of their money.
U.S. District Judge Jeffrey Brown accepted the plea and set sentencing for Nov. 1. At that time, Johnson faces up to 10 years in prison as well as a possible $250,000 maximum fine. He could also be ordered to forfeit the MV SPANISH PRINCESS.
Previously released on bond, Johnson was permitted to remain on bond pending that hearing.
The CGIS conducted the investigation. Assistant U.S. Attorney Adam L. Goldman prosecuted the case.
Owners of Military Contracting Companies Sentenced for Bid Rigging in TexasRead the Press Release
Two military contractors were sentenced today in the U.S. District Court for the Eastern District of Texas, Texarkana Division, for their roles in a bid-rigging scheme involving the maintenance and repair of military tactical vehicles in Texas. The multi-year scheme secured more than $17 million in taxpayer dollars.
Aaron Stephens, of Queen City, Texas, was sentenced to 18 months in prison and ordered to pay a criminal fine of $50,000. According to a plea agreement filed on Jan. 12, Stephens and his co-conspirators rigged bids on certain government contracts from May 2013 to January 2018 to give the false impression of competition and secure government payments. The conspirators submitted coordinated, higher-priced and non-competitive bids to ensure a designated company won each contract. Stephens and his co-conspirators rigged six different contracts for work performed for the Red River Army Depot in Texarkana, Texas. The projects included heavy military equipment work like refurbishing armor kits for military trucks and turrets for Humvees.
John “Mark” Leveritt, of Heath, Texas, was sentenced to six months in prison and ordered to pay a criminal fine of $300,000. According to a plea agreement filed on July 13, 2022, Leveritt engaged in the same conspiracy from May 2013 to April 2018 involving seven bids.
“Today’s sentences demonstrate our commitment to safeguarding the integrity of the military contracting process,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “We will hold accountable those who enrich themselves at the expense of our armed forces and ultimately the public.”
“Servicing heavy military vehicles and equipment are critical to the functioning of the U.S. military and its mission, so anticompetitive practices such as those used by the defendants in this case harm the military, taxpayers, and legitimate businesses alike,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “The Eastern District of Texas will vigorously prosecute those who compromise the integrity of the procurement process for greed and personal gain.”
“This sentencing should stand as a deterrent to those who would engage in fraud and corruption for personal gain and is a testament to the thorough and professional effort of our investigative partnerships with the United States Attorney’s Office and the FBI,” said Acting Special Agent-in-Charge Michael Curran of the U.S. Army Criminal Investigation Division’s Major Procurement Fraud Field Office. “We will diligently continue our efforts to pursue those engaged in criminal activity that impacts the integrity of the U.S. Government and the U.S. Army.”
“Today’s sentences are the result of the tireless work and dedication of multiple agencies to hold these individuals accountable for conspiring to defraud the United States government,” said Special Agent in Charge Chad Yarbrough of the FBI Dallas Field Office. “The public can rest assured that we remain committed to aggressively pursuing anyone that uses government programs for their own personal gain.”
The division’s Washington Criminal II section, the U.S. Army Criminal Investigation Division’s Dallas Fraud Resident Agency, and the FBI Dallas Field Office investigated the case
Trial Attorneys Jillian Rogowski, Daniel Loveland, and Aidan McCarthy of the Antitrust Division’s Washington Criminal II Office prosecuted the case.
In November 2019, the Justice Department created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government — federal, state and local. To contact the Procurement Collusion Strike Force, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to construction or infrastructure, go to www.justice.gov/procurement-collusion-strike-force.
Omaha Man Sentenced to 152 Months for Possession of Methamphetamine and FirearmRead the Press Release
Acting United States Attorney Susan Lehr announced that Eric K. Rose, 36, of Omaha, Nebraska, was sentenced today in federal court in Omaha for Possession with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. United States District Judge Brian C. Buescher sentenced Rose to a total of 152 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a four-year term of supervised release.
On January 26, 2022, Rose was staying at the Towne Place Suites Marriott in Omaha. Omaha police narcotics detectives, knowing he was staying there, served a search warrant on his room. Inside the room, officers located two ounces of methamphetamine, a drug ledger with “Rose” written on it, 15 live 9mm bullets, $3,000 cash, baggies, and a digital scale with methamphetamine residue. The officers also searched an SUV in the parking lot and located a Smith & Wesson SD40 handgun, a loaded magazine for the gun, and $635 cash. Rose admitted the methamphetamine and gun were his and he confessed to dealing methamphetamine. In particular, he asked his wife to bring the gun to the hotel because his methamphetamine supplier was looking to collect a drug debt.
The $3,635 constitutes drug proceeds or was used to facilitate Rose’s drug trafficking and that has been forfeited to the United States.
This case was investigated by the Omaha Police Department.
New Rochelle Man Charged with Bronx ShootingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Steven A. Nigrelli, the Acting Superintendent of the New York State Police (“NYSP”), announced the unsealing of a Complaint charging TYRIEK SKYFIELD with firing two shots at a victim on a residential street in the Bronx, injuring the victim. SKYFIELD will be presented this afternoon before U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Damian Williams said: “As alleged, Tyriek Skyfield fired two bullets at another individual on a residential street in the Bronx. One of those bullets struck the victim, injuring him. Thanks to the swift action of our law enforcement partners, Skyfield is now being held accountable for his alleged violent actions.”
NYSP Acting Superintendent Steven A. Nigrelli said: “This case sends a clear message that senseless acts of gun violence will not be tolerated, and justice will prevail. Working together with all levels of law enforcement, we can and are making a difference in the fight to end gun violence in our communities. I commend our New York State Police investigators, the U.S. Attorney’s Office, and the NYPD for their swift and diligent work on this case.”
According to the allegations in the Complaint:[1]
On Saturday, July 22, 2023, shortly before 10:00 p.m., SKYFIELD fired two gunshots at another individual (“Victim-1”) in the vicinity of Needham Avenue in the Bronx.
Surveillance video captured SKYFIELD brandishing a handgun at Victim-1 seconds before firing one of the shots. A still image from the surveillance footage is below:
One of the gunshots struck Victim-1 in the foot.
After firing the shots at Victim-1, SKYFIELD fled the scene on foot and was picked up outside a nearby building by a white BMX X6 SUV a few minutes later.
SKYFIELD later traveled to a club in Queens as a passenger in the same car. Video surveillance footage from the club showed SKYFIELD presenting proof of identification and entering the club:
The club’s identification records, in combination with video surveillance footage, indicated that the individual seen entering the club in the above still images was SKYFIELD.
After canvassing the scene of the shooting, NYPD officers recovered a shell casing from one of the gunshots in a nearby yard.
SKYFIELD was not permitted to possess ammunition because of prior felony convictions, one of which was a conviction for an armed robbery.
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SKYFIELD, 31, of New Rochelle, New York, is charged with possession of ammunition after a felony conviction, which carries a maximum sentence of 15 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the NYSP and the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York and thanked the New York City Police Department for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Z. Margulies is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Skyfield ComplaintNew Castle Resident Pleads Guilty to Trafficking Fentanyl and CocaineRead the Press Release
PITTSBURGH, PA – Donald Snowden was convicted of trafficking fentanyl and cocaine, United States Attorney Eric G. Olshan announced today.
Snowden, age 32 of New Castle, Pennsylvania, pled guilty to conspiring to distribute fentanyl and cocaine, between May 2021 and October 2022, and to distributing fentanyl, on August 31, 2022. Snowden pled guilty before United States District Judge Arthur J. Schwab. Judge Schwab scheduled sentencing to occur on January 17, 2024, at 9:00 a.m.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, and the Pennsylvania State Police conducted the investigation resulting in the convictions in this case.
Nageezi Man Sentenced to 17 and a Half Years in Prison for Second-Degree MurderRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Evan Haceesa was sentenced to 17 years six months in prison. Haceesa, 29, of Nageezi, New Mexico, and an enrolled member of the Navajo Nation, pled guilty to second-degree murder on March 22, 2023.
According to court documents, on Aug. 28, 2022, following a familial argument, Haceesa attacked a defenseless Jane Doe, who was his girlfriend of ten years and the mother of his two children. Haceesa attacked her at his father’s residence in Nageezi on the Navajo Nation. Haceesa continuously punched Jane Doe in the face until she lost consciousness and then kicked her lifeless body several times. After the initial attack, which lasted approximately 10-15 minutes, Haceesa retrieved a wheel barrel and placed Jane Doe’s body in it before he went inside to sleep. An officer from the Navajo Police Department responding to a report of domestic violence arrived on scene later that night and found Jane Doe unclothed and unresponsive, still in the wheel barrel.
Jane Doe was airlifted to the San Juan Regional Medical Center in Farmington, New Mexico, where she immediately underwent surgery and had to be connected to a ventilator to assist breathing. Jane Doe’s injuries included, among other things, significant blood and air in her abdomen, a perforated small intestine, bleeding in and around the small intestine, a bilateral nose fracture, and partially collapsed lungs. Though it initially appeared that Jane Doe might eventually recover, her condition worsened over the course of a week, and after two additional surgeries she succumbed to her injuries on Sept. 8, 2022.
Upon his release from prison, Haceesa will be subject to 5 years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Matthew J. McGinley is prosecuting the case.
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Murray Man Charged with Possessing Molotov CocktailRead the Press Release
Paducah, KY – On August 8, 2023, a federal grand jury returned an indictment charging a Murray, Kentucky man with possessing a Molotov cocktail, a destructive device.
United States Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division made the announcement.
According to the indictment, on September 10, 2022, in Calloway County, Kentucky, Jack Thomas Epperson, 20, possessed a Molotov cocktail, a destructive device that was not registered to him in the National Firearms Registration and Transfer Record.
Epperson made his initial court appearance on August 21, 2023, before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. If convicted, Epperson faces a maximum sentence of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The ATF Paducah Satellite Office is investigating the case, with assistance from the Kentucky State Police, Murray Police Department, and Murray State University Police Department.
Assistant U.S. Attorney Seth Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, is prosecuting the case.
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Mobile Man Sentenced to More Than Seven Years in Prison for Fraudulent PPP Loan Application and Fentanyl DistributionRead the Press Release
MOBILE, AL – A Mobile man was sentenced to a total of 85 months in prison for committing wire fraud in connection with a false PPP loan application and conspiring to distribute fentanyl while on federal pretrial release conditions.
According to court documents, in April 2021, Kentarius Williams, 31, submitted a fraudulent application to the Small Business Administration (“SBA”) requesting a Paycheck Protection Program (“PPP”) loan in the amount of $20,833. In his PPP loan application, Williams falsely claimed that he was the sole proprietor of a nonexistent “cleaning service” business in need of relief due to the COVID-19 pandemic. Williams submitted a fake tax schedule purporting to show more than $100,000 in business income and monthly payroll expenses in excess of $8,000. In submitting the fraudulent application to the SBA, Williams caused a wire communication to travel from the SBA’s computer servers in Virginia to a bank’s computer servers in Oregon, in violation of the federal wire fraud statute.
Additionally, Williams admitted that from at least September 2022 through February 2023, he conspired with other people to distribute fentanyl. On several occasions, narcotics agents used confidential informants to conduct controlled purchases of fentanyl pills from Williams. Those transactions—including sales of fentanyl that Williams made while he was on pretrial release conditions in his federal wire fraud case—were videotaped. Agents executed a search warrant at Williams’s apartment in Mobile in February 2023, seizing fentanyl and oxycodone pills, among other things. Agents also searched Williams’s cell phone, which contained numerous text and Instagram messages in which he discussed his sales of fentanyl and other drugs. For example, in January 2023, Williams wrote that he “got rich off” sales of fentanyl pills, which he said he could obtain for “dirt cheap.”
United States District Judge Terry F. Moorer sentenced Williams to serve 14 months in prison for the wire fraud, and 71 months in prison for the fentanyl distribution conspiracy, ordering the prison terms to run consecutively to one another. In addition to the 85-month total prison term, Judge Moorer ordered Williams to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge Moorer ordered Williams to pay $200 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Federal Bureau of Investigation, SBA Office of Inspector General, Treasury Inspector General for Tax Administration, and Mobile Police Department investigated the wire fraud case. The Drug Enforcement Administration investigated the drug case.
Assistant U.S. Attorneys Kasee Heisterhagen and Lydia Lucius prosecuted the wire fraud case on behalf of the United States. Assistant U.S. Attorney Justin Roller prosecuted the drug case on behalf of the United States.Mobile Man Sentenced for Fentanyl DistributionRead the Press Release
MOBILE, AL – A Mobile man was sentenced to 41 months in prison for conspiring to distribute fentanyl.
According to court documents, Eddie Rembert, 52, admitted that from at least September 2022 through February 2023, he conspired with other people to distribute fentanyl. On several occasions, narcotics agents used confidential informants to conduct controlled purchases of fentanyl pills from Rembert. Those transactions were videotaped. Agents executed a search warrant at the apartment of one of Rembert’s coconspirators in Mobile in February 2023, seizing fentanyl and oxycodone pills, among other things. Agents also searched the coconspirator’s cell phone, which contained numerous text messages from Rembert in which he discussed his sales of fentanyl pills.
In addition to the 41-month prison term, United States District Judge Terry F. Moorer ordered Rembert to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge Moorer ordered Rembert to pay $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Miami Woman Pleads Guilty to Fentanyl Charge Following Traffic Stop in JamestownRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Elina Martinez, 65, of Miami, FL, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute 40 grams or more of fentanyl, which carries mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
On December 7, 2022, a Jamestown Police Officer conducted a traffic stop after observing Martinez’s vehicle, bearing a Missouri license plate, committing a number of traffic violations. Martinez, who produced a Florida driver’s license and car rental paperwork to the officer, gave consent for the officer to search the car. Officers opened the hood of the car and observed an “aftermarket” car battery that appeared to be too large for the car and tampered with due to the presence of an unknown adhesive. Officers cut into the battery and found a plastic bag containing a large quantity of blue pills. The defendant was detained, and the car was towed for a more extensive search. Officers later searched the car battery and the car and discovered a plastic bag containing approximately 9 lbs. 13 oz. of blue pills bearing the markings “m” and “30.” The pills contained 4,389 grams of fentanyl.
The plea is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Chautauqua County Sheriff Office, under the direction of Sheriff James Quattrone, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
Sentencing is scheduled for December 8, 2023, at 12:30 p.m. before Judge Arcara.
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Mexican Man Sentenced for Methamphetamine TraffickingRead the Press Release
Acting United States Attorney Susan Lehr announced that Jose Emmanuel Hernandez-Gomez, 30, of Mexico, was sentenced today in federal court in Omaha, Nebraska, for trafficking methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Hernandez-Gomez to 135 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release.
On May 8, 2021, a York County Sheriff’s deputy stopped a vehicle containing 27 pounds of methamphetamine. As part of the investigation, it was determined that the methamphetamine was to be delivered to an address in Omaha. The Drug Enforcement Administration and Omaha Police Department assisted in transporting the vehicle to Omaha, where an undercover officer then went to the address to deliver the methamphetamine. Hernandez-Gomez came out of the residence and gave the undercover officer $6,000 and took possession of the methamphetamine. Hernandez-Gomez was then immediately arrested.
This case was investigated by the York County Sheriff’s Office, DEA, and the Omaha Police Department.
Members of Charlotte-Based Auto Theft Ring Are Charged in Federal CourtRead the Press Release
CHARLOTTE, N.C. – A criminal indictment was unsealed in federal court today, charging five individuals with stealing dozens of high-end vehicles worth millions of dollars from dealerships located across the United States, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making today’s announcement by Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD).
The indictment charges Dewanne Lamar White, 43, of Sumter, South Carolina, Garyka Vaughn Bost, 24, of Denver, North Carolina, Kevin Ja’Coryen James Fields, 27, of Charlotte, Hosea Fernandez Hampton, Jr., 25, of Charlotte, and Reginald Eugene Hill, 23, of Charlotte, with conspiracy to transport, possess, and sell stolen vehicles in interstate commerce, and interstate transportation of a stolen motor vehicle. White, Fields, and Hampton are also charged with possession of a stolen motor vehicle.
According to allegations in the indictment, from 2021 to 2023, the defendants engaged in a conspiracy to steal luxury vehicles worth millions of dollars from dealerships in North Carolina, South Carolina, Georgia, Florida, Tennessee, Kentucky, Alabama, Mississippi, Louisiana, Indiana, Ohio, Pennsylvania, New Jersey, New York, and Arizona. The indictment alleges that the co-conspirators transported the stolen vehicles back to Charlotte and sold them locally at prices well below market value. The indictment further alleges that, to maximize profits, the co-conspirators stole luxury vehicles made by Bentley, BMW, Cadillac, Land Rover, Porsche, and Mercedes-Benz, and other expensive models from Chevrolet, Dodge, Ford, and other manufacturers.
According to allegations in the indictment, the defendants executed the thefts in a number of ways. In some instances, the co-conspirators visited dealerships posing as customers interested in purchasing the vehicles. After pretending to test drive or inspect the vehicles, the co-conspirators would allegedly swap the vehicles’ key fobs with similar ones, and later use the stolen key fobs to steal the vehicles. Other times, the indictment alleges that the co-conspirators employed methods like “smash and grab” thefts, where they would break into dealerships and locate keys to the high-end models, or break open lockboxes containing keys to luxury vehicles, and then drive the vehicles off the lot. The indictment alleges that Bost, Fields, and Hill often served as drivers in the conspiracy, and White and Hampton frequently paid them and other drivers for their work in the scheme. The indictment further alleges that on several occasions the defendants and their co-conspirators stole multiple vehicles simultaneously, resulting in hundreds of thousands of dollars in losses.
According to allegations in the indictment, once the stolen vehicles were taken off the dealership lots, the defendants avoided law enforcement detection by removing the GPS navigation and tracking systems from the stolen vehicles, attaching fictitious dealer tags or stolen license plates on the vehicles, and replacing the vehicles’ authentic Vehicle Identification Numbers, among other things.
In announcing the federal indictment, U.S. Attorney King said, “We will not tolerate brazen theft schemes that cost businesses and consumers millions of dollars. I want to thank our federal and local law enforcement partners for their incredible work with this ongoing investigation that has led to today’s charges.”
“Stopping schemes like this is critical as it not only protects businesses, but also it helps protect our economy,” said Special Agent in Charge Martinez. “We worked closely with a number of our law enforcement partners to shut down this multimillion-dollar operation and bring the perpetrators to justice and I am happy with the success of the operation.”
“No matter how complicated an interstate theft ring may seem, the FBI is poised to uncover, dissect, and dismantle the scheme,” said Special Agent in Charge DeWitt. “We are committed to working with our partners to ensure justice is served.”
The charge of conspiracy to transport, possess, and sell stolen vehicles in interstate commerce carries a maximum penalty of five years in prison and a $250,000 fine. The charge of interstate transportation of a stolen motor vehicle and possession of a stolen vehicle each carry a statutory maximum penalty of 10 years in prison and a $250,000 fine.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
U.S. Attorney King thanked HSI, FBI, and CMPD for their investigation of the case
and recognized the contributions of the York County South Carolina Sheriff’s Office and many other state and local law enforcement partners that contributed to the investigation.
Assistant U.S. Attorneys William Bozin and Daniel Ryan of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Marion County Man Convicted of Human TraffickingRead the Press Release
TYLER, Texas - A Jefferson, Texas man has been convicted of federal sex trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Corey Johnson, 40, pleaded guilty to one count of conspiracy to commit sex trafficking today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, Johnson engaged in trafficking at least three victims between March 2020 and September 2020 in Texas, Louisiana, Tennessee, New York, and California. Johnson transported the victims and arranged transportation for the victims between various hotels and motels to perform commercial sex acts. Johnson recruited the victims by social media and threatened to harm them if they did not perform commercial sex acts for commercial sex customers. Johnson obtained customers by purchasing and posting advertisements on various internet websites.
Under federal statutes, Johnson faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by Texas DPS Criminal Investigations Division. This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Robert Austin Wells, with assistance from Trial Attorney Julie Pfluger of the Justice Department’s Civil Rights Division, Human Trafficking Prosecution Unit.
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Madison Man Sentenced to 7 Years for Robbing Two Madison BusinessesRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Scott C. Tolliver, 43, Madison, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 7 years in federal prison for two counts of robbery. The prison term will be followed by 3 years of supervised release. Tolliver pleaded guilty to these charges on May 23, 2023.
On April 15, 2022, at around 5:25 pm, Tolliver robbed the McDonald’s Restaurant on Regent Street in Madison. During the robbery, Tolliver approached the cash register wearing all black, sunglasses, and a medical-style facemask, pointed a black handgun at the employee, and demanded all of the money in the register. After receiving cash from the employee, Tolliver fled the restaurant on a bicycle.
Later that same night, at around 8:53 pm, Tolliver robbed the Walgreens on East Campus Mall in Madison. During that robbery, Tolliver approached the cash register wearing a black ski mask and dark clothing, showed the employee a black handgun in his waistband, and told her to give him all of the money and to not run. After receiving the cash from the register, Tolliver fled the store on the same bicycle.
Madison Police Department officers were able to identify Tolliver as the robber of both businesses after reviewing surveillance video from McDonald’s, Walgreens, and city street cameras. Officers were able to track Tolliver leaving both businesses and riding his bicycle back to his apartment in Madison. When officers searched Tolliver’s apartment, they located the bicycle and clothing consistent with those worn by the robber.
At the time of the robberies, Tolliver was on active state supervision for a prior felony conviction. He was also out on bond for a pending felony state case.
At sentencing, Judge Conley highlighted Tolliver’s lengthy criminal history including prior convictions involving weapons, domestic violence, child abuse, batteries in prison, and stalking. He said that Tolliver has repeatedly proven to be a danger to the community with instances of violence. Judge Conley noted that the victims in this case suffered emotional distress during the robberies and the long-term impact on them is not fully knowable at this time.
The charges against Tolliver were the result of an investigation conducted by the Madison Police Department and Federal Bureau of Investigation. The Dane County District Attorney’s Office also provided assistance in the case. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Justice Department Awards Almost $70 Million in Grant Funding for Support Services for American Indian and Alaska Native Victims of CrimeRead the Press Release
The Justice Department announced today the awarding of $69,632,900 through 212 awards in the Department’s Tribal Victim Services Set-Aside (TVSSA) program, which provides support to American Indian and Alaska Native communities across the country to enhance services for victims of crime, consistent with the requirements of the Victims of Crime Act.
These awards will fund a wide range of services for crime victims, from counseling and civil legal assistance to emergency housing and Tribal wellness ceremonies. Of these TVSSA awards, almost $22 million will go to 67 Tribal communities in Alaska.
“The Justice Department recognizes that Alaska Native families and communities have endured persistently high levels of violence and that women and girls have borne the brunt of that violence,” said Attorney General Merrick B. Garland. “We are here today to reaffirm the Justice Department’s commitment to working across the federal government and with Alaska Native communities to meet these urgent challenges.”
Additionally, earlier today, the Justice Department’s Office on Violence Against Women (OVW) granted $774,790 in Sexual Assault Services Formula Grant Program (SASP) awards for Alaska Native communities.
Attorney General Garland traveled to Anchorage and Galena, Alaska, where he met with Alaska Native community leaders from several villages. The Attorney General was joined by Sen. Lisa Murkowski in visiting with village leaders in Galena, and additionally joined by Rep. Mary Peltola at a roundtable in Anchorage with representatives of Native Tribal organizations to discuss public safety issues in Alaskan Native Villages.
The Department grants are especially meant to help Alaska Native communities and remotely located tribes meet the victim service challenges that they face. OVC recently piloted a new approach to make it easier to access grants recognizing some challenges posed by limited human and technological resources. This pilot was implemented in direct response to requests from Alaska Native villages who needed in-person support with grant applications. Grant managers from OVC’s Tribal Division were deployed to Alaska and spent 32 days on the ground meeting with more than two dozen Alaska village grant applicants and helped with such tasks as creating program designs and project budgeting.
The Department has granted hundreds of awards since the Tribal Victim Services Set-Aside program was launched five years ago, and they have helped provide services to thousands of crime victims. More than 88,000 victims have received direct services since 2020. These funds are being used to serve victims of domestic violence, sexual assault, arson, burglary, elder abuse, fraud, theft, kidnapping, as well as sex and labor trafficking. The Office for Victims of Crime (OVC)’s Tribal Division has worked closely with Tribal leaders and Tribal advocates to make sure this program is as responsive as possible to the needs of Tribes.
These awards and the Attorney General’s trip exhibit the continued efforts of the Justice Department to uplift Tribal communities and ensure they have the resources they need to maintain public safety and security.
Justice Department Announces Results of Nationwide COVID-19 Fraud Enforcement ActionRead the Press Release
The Justice Department announced today the results of a coordinated, nationwide enforcement action to combat COVID-19 fraud, which included 718 enforcement actions – including federal criminal charges against 371 defendants – for offenses related to over $836 million in alleged COVID-19 fraud.
“The Justice Department has now seized over $1.4 billion in COVID-19 relief funds that criminals had stolen and charged over 3,000 defendants with crimes in federal districts across the country,” said Attorney General Merrick B. Garland. “This latest action, involving over 300 defendants and over $830 million in alleged COVID-19 fraud, should send a clear message: the COVID-19 public health emergency may have ended, but the Justice Department’s work to identify and prosecute those who stole pandemic relief funds is far from over.”
The announcement was made by Deputy Attorney General Lisa O. Monaco at a roundtable meeting of senior Justice Department officials, law enforcement partners, and Office of Inspector General (OIG) executives. Deputy Attorney General Monaco also announced the launch of two additional COVID-19 Fraud Enforcement Strike Forces: one at the U.S. Attorney’s Office for the District of Colorado, and one at the U.S. Attorney’s Office for the District of New Jersey. These two strike forces add to the three strike forces launched in September 2022 in the Eastern and Central Districts of California, the Southern District of Florida, and the District of Maryland.
“The law enforcement actions announced today reflect the Justice Department’s focus – working with our law enforcement partners nationwide – on bringing to justice those who stole from American businesses and families at a time of national emergency,” said Deputy Attorney General Monaco. “The two new Strike Forces launched today will increase our reach as we continue to pursue fraudsters and recover taxpayer funds, no matter how long it takes.”
At the meeting, Michael C. Galdo, Acting Director of COVID-19 Fraud Enforcement, detailed the results of the three-month coordinated law enforcement action that took place from May through July 2023, which included criminal, civil, and forfeiture actions. More than 50 U.S. Attorneys’ Offices, including the COVID-19 Fraud Enforcement Strike Forces, the Justice Department’s Criminal and Civil Divisions, and more than a dozen law enforcement and OIG partners worked together to conduct the sweep.
“I applaud the hard work of our prosecutors around the country,” said Acting Director Galdo. “However, this announcement is not a victory lap. Our mission is not complete. We know from our investigative partners that identifying those who committed pandemic relief fraud and recovering stolen funds is difficult work. But the Justice Department, including our strike forces, U.S. Attorneys’ Offices, and the Criminal and Civil Divisions, is committed to using our criminal, civil, and forfeiture tools to hold these fraudsters accountable.”
As part of the effort, 718 law enforcement actions occurred, including criminal charges, civil charges, forfeitures, guilty pleas, and sentencings, with a combined total actual loss of more than $836 million. Criminal charges were filed against 371 defendants, and 119 defendants pleaded guilty or were convicted at trial during the sweep. Over $57 million in court-ordered restitution was imposed. 117 civil matters occurred during the sweep, with over $10.4 million in judgments. Prosecutors worked with law enforcement to secure forfeiture of over $231.4 million.
As part of the announcement, Acting Director Galdo said that 63 of the defendants had alleged connections to violent crime, including violent gang members also accused of using pandemic funds to pay for a murder for hire. Twenty-five defendants have alleged connections to transnational crime networks.
Many of the cases in the enforcement action involve charges related to pandemic unemployment insurance benefit fraud and fraud against the two largest pandemic Small Business Administration programs: the Paycheck Protection Program and Economic Injury Disaster Loans. Additional matters involved pandemic healthcare billing fraud, fraud against the Emergency Rental Assistance program, and fraud committed against the IRS Employee Retention Credit program (ERC), a refundable tax credit for businesses and tax-exempt organizations that had employees and were affected during the COVID-19 pandemic. IRS Criminal Investigations (IRS-CI) worked with the California Strike Force and the U.S. Attorney’s Office for the District of New Jersey to bring multimillion dollar ERC fraud cases during the enforcement action.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force (CFETF) 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.
The COVID-19 Fraud Enforcement Action cases were prosecuted by the following Justice Department entities: Criminal Division’s Fraud Section; Civil Division’s Fraud Section, Consumer Protection Branch; and by the following U.S. Attorneys’ Offices: Northern District of Alabama, Southern District of Alabama, Arizona, Eastern District of California, Central District of California, Northern District of California, Southern District of California, Colorado, Washington, D.C., Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Middle District of Georgia, Northern District of Georgia, Southern District of Georgia, Southern District of Indiana, Idaho, Northern District of Illinois, Northern District of Iowa, Eastern District of Kentucky, Western District of Kentucky, Western District of Louisiana, Massachusetts, Maryland, Eastern District of Michigan, Western District of Michigan, Eastern District of Missouri, Western District of Missouri, Northern District of Mississippi, Maine, Montana, Eastern District of North Carolina, Western District of North Carolina, New Hampshire, New Jersey, Nevada, Northern District of New York, Northern District of Oklahoma, Northern District of Ohio, Southern District of Ohio, Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, Puerto Rico, Rhode Island, Eastern District of Texas, Northern District of Texas, Southern District of Texas, Western District of Texas, Eastern District of Virginia, Western District of Virginia, Eastern District of Washington, Western District of Washington, Eastern District of Wisconsin, and Northern District of West Virginia.
The cases were investigated by the following agencies: FBI; U.S. Secret Service; IRS-CI; Defense Criminal Investigative Service; Homeland Security Investigations; U.S. Postal Inspection Service; Army Criminal Investigations Division; Food and Drug Administration’s Office of Criminal Investigations; the Diplomatic Security Service; and the Offices of Inspectors General from the Small Business Administration, Department of Labor, Department of Homeland Security, Federal Deposit Insurance Corporation, Department of Health and Human Services, Department of Veterans Affairs, Federal Housing Finance Agency, Federal Reserve Board, Social Security Administration, the Special Inspector General for Pandemic Relief, Treasury, and the Treasury Inspector General for Tax Administration.
OCDETF Fusion Center and OCDETF’s International Organized Crime Intelligence and Operations Center, the Pandemic Response Accountability Committee, the Financial Crimes Enforcement Network, and the National Unemployment Insurance Fraud Task Force provided key support.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’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.
Jury finds Mexican duo guilty of importing over 900 pounds of liquid methRead the Press Release
LAREDO, Texas – Two men have been convicted of importing nearly $1 million worth of meth, announced U.S. Attorney Alamdar S. Hamdani.
The federa jury deliberated for approximately 10 minutes before returning guilty verdicts against Noe Jesus Martinez-Montelongo, 35, and Fidel Rodriguez-Saldana, 34, following a three-day trial.
On Nov. 28, 2022, Martinez and Saldana attempted to enter the United States at the Columbia Solidarity port of entry in Laredo, driving a tractor-trailer without a load. Authorities referred them to secondary inspection where a K-9 alerted to the tractor.
Law enforcement conducted a scope and discovered a secret compartment in each diesel tank of the tractor. Authorities were able to extract some of the liquid which tested positive for meth.
They ultimately seized a total of 413 kilograms (910 pounds) of liquid meth which filled 22 buckets.
The estimated wholesale value is approximately $1 million.
Martinez and Saldana claimed no knowledge of the liquid at trial, reporting that they were simply supposed to pick up a legitimate load in Laredo. The jury did not believe their claims and found them guilty as charged.
U.S. District Judge Diana Saldana will impose sentencing at a later date. At that time, both Martinez and Saldana face up to life in prison. They will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Michael Makens and Brandon Bowling are prosecuting the case.
Jamestown Man Pleads Guilty to Conspiracy for His Role in Narcotics Ring Operating in Jamestown and BuffaloRead the Press Release
BUFFALO, NY--U.S. Attorney Trini E. Ross announced today that Brian Cessna, 63, of Jamestown, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute, and to distribute, 400 grams or more of fentanyl, which carries a mandatory minimum penalty of 10 years in, a maximum of life, and a fine of $10,000,000.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that during the course of the conspiracy, Cessna bought and sold heroin and fentanyl, for profit and his own use. He also assisted co-conspirator Holly Berenguer in selling heroin and fentanyl, for profit and her own use, delivering on her behalf and collecting payments. An individual known as “Joey Cracks” (co-defendant Joseph Zaso) was Berenguer’s source of supply. Cessna utilized his Fairview Avenue residence for drug trafficking purposes, and also allowed Berenguer to utilize the residence to sell drugs.
Holly Berenguer and co-defendants Denver Komenda and Richard Philbrick were previously convicted and are awaiting sentencing. Charges remain pending against co-defendants Joseph Zaso, Brandon Andino, Justin Yuchnitz, and Kylie Lewis.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The plea is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone.
Sentencing is scheduled for January 9, 2024, before Judge Vilardo.
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Indiana Man Sentenced to over 6 Years in Federal Prison for Traveling to Kentucky to Engage in Sexual Conduct with a MinorRead the Press Release
Owensboro, KY – An Indiana man was sentenced yesterday to 6 years and 8 months in prison for traveling to Kentucky to engage in sexual conduct with a minor.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Robert Holman of the United States Secret Service Kentucky Field Division, Kentucky Attorney General Daniel Cameron, Commissioner Phillip Burnett, Jr. of the Kentucky State Police, and Chief Art Ealum of the Owensboro Police Department made the announcement.
According to court documents, Bradley Linderman, 36, was sentenced to 6 years and 8 months in prison, followed by a 10-year term of supervised release, for traveling across state lines with intent to engage in illicit sexual conduct with a minor, attempted enticement of a minor, and attempted transfer of obscene material to a minor. There is no parole in the federal system.
Linderman used the internet to communicate with an undercover agent he believed to be a 15-year-old girl for the purposes of engaging in sexual conduct. Linderman then traveled from Indiana to Kentucky to meet the undercover agent to engage in sexual conduct.
This case was the result of a joint federal, state, and local operation called Operation Angel, aimed at making federal arrests of individuals who preyed upon children in the Owensboro area. The United States Secret Service, the Kentucky Office of the Attorney General, the Kentucky State Police, and the Owensboro Police Department investigated the case.
Assistant U.S. Attorney A. Spencer McKiness prosecuted the 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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Idaho Diesel Parts Companies and Owner Agree to Pay $1 Million After Pleading Guilty to Selling and Installing Illegal Defeat DevicesRead the Press Release
POCATELLO – Diesel performance parts retailers GDP Tuning LLC and Custom Auto of Rexburg LLC, doing business as “Gorilla Performance,” as well as the companies’ owner Barry Pierce, pleaded guilty to criminal charges today in federal court in Pocatello, and agreed to pay a total of $1 million in criminal fines, announced U.S. Attorney Josh Hurwit today. The companies also agreed to implement compliance programs and to not manufacture, sell or install any device that defeats a vehicle’s emissions controls.
GDP Tuning pleaded guilty to an information charging it with conspiracy to violate the Clean Air Act (CAA). Gorilla Performance and Pierce pleaded guilty to an information charging them with violating the CAA by tampering with the monitoring device of an emissions control system of a diesel truck. Under the plea agreement, the companies and Pierce agree to pay a $1 million criminal fine. Pierce also faces up to 2 years in federal prison.
“The defendants in this case purposefully violated laws that protect air quality and the overall quality of life for Idahoans, especially vulnerable populations such as children, the elderly and those who suffer from respiratory conditions,” said U.S. Attorney Josh Hurwit. “My office will continue to partner with law enforcement agencies to prosecute those who seek illegal profits at the expense the public’s health and our shared environment.”
“Tampering with vehicles’ on-board diagnostic devices isn’t just a violation of federal law – it’s a major health hazard,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “People are harmed as a direct consequence of the many air pollutants that would be removed by emissions controls systems absent the illegal tampering. We have made progress in curbing harmful emissions, but that progress is undermined by sellers and distributors of defeat devices. We are committed to enforcing the Clean Air Act and holding accountable businesses and individuals that violate federal law.”
“Nearly a decade after EPA began cracking down on illegal defeat devices that violate the Clean Air Act, there is no excuse for companies to be continuing to cheat on vehicle emissions and putting the health of the environment and our communities at risk,” said Assistant Administrator David M. Uhlmann for the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “EPA will continue to pursue criminal charges against companies like Gorilla Diesel, which broke the law brazenly and repeatedly, until this egregious criminal activity comes to a stop once and for all.”
According to court documents, GDP Tuning conspired with its owner Barry Pierce and others to violate the CAA by purchasing and selling tens of thousands of tuning devices and accompanying software which, when used together, tampered with vehicles’ on-board diagnostic (OBD) systems. OBDs normally detect any removal and malfunction of a vehicle’s emissions control equipment and record a diagnostic trouble code which will illuminate a vehicles “check engine light.” If the malfunction is not remedied, some vehicles can go into “limp mode,” where the maximum speed is limited to 5 mph as an incentive to have the vehicle repaired.
GDP Tuning bought and sold devices and software that allowed customers to reprogram or “tune” a vehicle’s OBD. This reprogramming tampers with emissions monitoring built into the diagnostic system and allows removal of the vehicle’s emissions control equipment without detection by the OBD. Removing a vehicle’s emissions controls is typically referred to as a “delete” and is accompanied by a “delete tune.”
In addition to GDP Tuning’s national wholesale operation, Gorilla Performance and Pierce operated a retail shop and auto repair facility in Rexburg, where customers’ trucks were deleted and tuned.
Diesel exhaust contains a variety of air pollutants, such as particulate matter (PM), nitrogen oxides (NOx), carbon monoxide and non-methane hydrocarbons, among other hazardous air pollutants. Factory-standard emissions control equipment dramatically reduces these emissions.
Deleting a diesel truck causes its emissions to increase dramatically. For a fully deleted truck with all emissions equipment removed, EPA testing has quantified the increased emissions as follows: NOx increased 310 times, non-methane hydrocarbons increased 1,400 times, carbon monoxide increased 120 times and PM increased 40 times. EPA’s Air Enforcement Division released a report in November 2020 finding that more than 500,000 diesel pickup trucks in the United States – approximately 15% of U.S. diesel trucks that were originally certified with emissions controls – have been illegally deleted.
Diesel emissions contain multiple hazardous compounds that harm human health and the environment. Diesel emissions have been found to cause and worsen respiratory ailments such as asthma and lung cancer. One study found that 21,000 American deaths annually are attributable to diesel particulate matter. Additionally, exposure to polluted air in utero has been associated with a host of problems with lifelong ramifications including low birth weight, preterm birth, autism, asthma and brain and memory disorders.
The defendants are scheduled to be sentenced by Senior U.S. District Court Judge B. Lynn Winmill on Nov. 8. Though the corporate defendants agreed to pay $1 million in criminal fines under the plea agreements, they face a maximum fine per count of $500,000 or twice the gross pecuniary gain derived from the offense, and Pierce faces up to 2 years in prison. The defendants’ sentences will be determined at the discretion of the court after application of statutory factors and the Federal Sentencing Guidelines, which consider a number of variables.
The criminal case stemmed from an investigation by the EPA’s Criminal Investigation Division. U.S. Attorney Josh Hurwit, Senior Trial Attorney Cassandra Barnum of the Justice Department’s Environmental Crimes Section, and EPA Regional Criminal Enforcement Counsel Karla Perrin are prosecuting the case.
Stopping the manufacture, sale, and installation of illegal delete devices is a priority for EPA. To learn more, visit: epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.
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Idaho Diesel Parts Companies and Owner Agree to Pay $1 Million After Pleading Guilty to Selling and Installing Illegal Defeat DevicesRead the Press Release
Diesel performance parts retailers GDP Tuning LLC and Custom Auto of Rexburg LLC, dba Gorilla Performance, as well as the companies’ owner Barry Pierce, pleaded guilty to criminal charges today in federal court in Pocatello, Idaho, and agreed to pay a total of $1 million in criminal fines. The companies also agreed to implement compliance programs and to not manufacture, sell or install any device that defeats a vehicle’s emissions controls.
GDP Tuning pleaded guilty to an information charging it with conspiracy to violate the Clean Air Act (CAA). Gorilla Performance and Pierce pleaded guilty to an information charging them with violating the CAA by tampering with the monitoring device of an emissions control system of a diesel truck. Under the plea agreement, the companies and Pierce agree to pay a $1 million criminal fine.
“Tampering with vehicles’ on-board diagnostic devices isn’t just a violation of federal law – it’s a major health hazard,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “People are harmed as a direct consequence of the many air pollutants that would be removed by emissions controls systems absent the illegal tampering. We have made progress in curbing harmful emissions, but that progress is undermined by sellers and distributors of defeat devices. We are committed to enforcing the Clean Air Act and holding accountable businesses and individuals that violate federal law.”
“Nearly a decade after EPA began cracking down on illegal defeat devices that violate the Clean Air Act, there is no excuse for companies to be continuing to cheat on vehicle emissions and putting the health of the environment and our communities at risk,” said Assistant Administrator David M. Uhlmann of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “EPA will continue to pursue criminal charges against companies like Gorilla Diesel, which broke the law brazenly and repeatedly, until this egregious criminal activity comes to a stop once and for all.”
“The defendants in this case purposefully violated laws that protect air quality and the overall quality of life for Idahoans, especially vulnerable populations such as children, the elderly and those who suffer from respiratory conditions,” said U.S. Attorney Josh Hurwit for the District of Idaho. “My office will continue to partner with law enforcement agencies to prosecute those who seek illegal profits at the expense the public’s health and our shared environment.”
According to court documents, GDP Tuning conspired with Pierce and others to violate the CAA by purchasing and selling tens of thousands of tuning devices and accompanying software which, when used together, tampered with vehicles’ on-board diagnostic (OBD) systems. OBDs normally detect any removal and malfunction of a vehicle’s emissions control equipment and record a diagnostic trouble code which will illuminate a vehicles “check engine light.” If the malfunction is not remedied, some vehicles can go into “limp mode,” where the maximum speed is limited to 5 mph as an incentive to have the vehicle repaired.
GDP Tuning bought and sold devices and software that allowed customers to reprogram or “tune” a vehicle’s OBD. This reprogramming tampers with emissions monitoring built into the diagnostic system and allows removal of the vehicle’s emissions control equipment without detection by the OBD. Removing a vehicle’s emissions controls is typically referred to as a “delete” and is accompanied by a “delete tune.”
In addition to GDP Tuning’s national wholesale operation, Gorilla Performance and Pierce operated a retail shop and auto repair facility in Rexburg, Idaho, where customers’ trucks were deleted and tuned.
Diesel exhaust contains a variety of air pollutants, such as particulate matter (PM), nitrogen oxides (NOx), carbon monoxide and non-methane hydrocarbons, among other hazardous air pollutants. Factory-standard emissions control equipment dramatically reduces these emissions.
Deleting a diesel truck causes its emissions to increase dramatically. For a fully deleted truck with all emissions equipment removed, EPA testing has quantified the increased emissions as follows: NOx increased 310 times, non-methane hydrocarbons increased 1,400 times, carbon monoxide increased 120 times and PM increased 40 times. EPA’s Air Enforcement Division released a report in November 2020 finding that more than 500,000 diesel pickup trucks in the United States – approximately 15% of U.S. diesel trucks that were originally certified with emissions controls – have been illegally deleted.
Diesel emissions contain multiple hazardous compounds that harm human health and the environment. Diesel emissions have been found to cause and worsen respiratory ailments such as asthma and lung cancer. One study found that 21,000 American deaths annually are attributable to diesel particulate matter. Additionally, exposure to polluted air in utero has been associated with a host of problems with lifelong ramifications including low birth weight, preterm birth, autism, asthma and brain and memory disorders.
Sentencing is scheduled for Nov. 8 before U.S. District Court Judge B. Lynn Winmill for the District of Idaho. Though the corporate defendants agreed to pay $1 million in criminal fines under the plea agreements, they face a maximum fine per count of $500,000 or twice the gross pecuniary gain derived from the offense, and Pierce faces up to two years in prison. The defendants’ sentences will be determined at the discretion of the court after application of statutory factors and the Federal Sentencing Guidelines, which consider a number of variables.
The criminal case stemmed from an investigation by the EPA’s Criminal Investigation Division. U.S. Attorney Josh Hurwit for the District of Idaho, Senior Trial Attorney Cassandra Barnum of the Environment and Natural Resources' Environmental Crimes Section and EPA Regional Criminal Enforcement Counsel Karla Perrin are prosecuting the case.
Stopping the manufacture, sale and installation of illegal delete devices is a priority for EPA. To learn more, visit www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.
Human smugglers receive maximum sentenceRead the Press Release
McALLEN, Texas – A 36-year-old Houston man has been ordered to federal prison for his involvement in a conspiracy involving the transportation of undocumented aliens throughout South Texas, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury deliberated for approximately 45 minutes before returning guilty verdicts Dec. 14, 2022, against Andres Beltran Jr., and Jose Luis Beltran Mondragon, 28, both of Houston, following a three-day trial.
U.S. District Judge Micaela Alvarez has now ordered Beltran to serve a total of 120 months in federal prison followed by three years of supervised release. At the hearing, the court noted the sophistication and organization it took to plan and execute the multiple alien transport events.
Mondragon was previously ordered to serve the same sentence.
“These men were hands-off coordinators who thought they could hire others to do their dirty work and not get caught,” said Hamdani. “The swift jury verdict and today’s 10-year prison sentence, the maximum, shows otherwise. This office is committed to prosecuting every part of a human smuggling operation, from the drivers to the ones pulling the strings.”
On several occasions from February through June 2020, Beltran, Mondragon and others transported multiple groups of undocumented aliens from Rio Grande City north toward Laredo for the anticipated final destination of Houston. The Beltran smuggling organization housed the undocumented aliens at a ranch in Rio Grande City until additional members of the organization would then transport the undocumented aliens north.
Both Beltran and Mondragon would drive down from Houston, coordinate with the drivers, scout the area for law enforcement and accompany the transport drivers back north in tandem. The Beltran smuggling organization would typically transport the aliens in the bed of trucks through private ranch roads in an effort to circumvent the Border Patrol (BP) checkpoints.
The jury heard evidence of a rollover accident caused during a transport event which resulted in serious injury to one of the aliens.
Through the course of the investigation, law enforcement apprehended over 100 undocumented aliens attributable to the organization.
At trial, Beltran and Mondragon attempted to convince the jury they just happen to be in the area of the smuggling events each and every time. The jury did not believe the defense claims and found them guilty as charged.
Beltran and Mondragon have both been and will remain in custody pending transfer to U.S. Bureau of Prisons facilities to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of BP and Starr County Sheriff’s Office. Assistant U.S. Attorneys Laura Garcia and Matthew Phelps prosecuted the case.
Hugo Resident Sentenced for Second Degree Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeffrey Lyn Pierce, age 74, of Hugo, Oklahoma, was sentenced to 327 months in prison for one count of murder in the second degree in Indian Country.
The charges arose from investigations by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the Choctaw County Sheriff’s Office, and the Choctaw County Ambulance Authority.
On May 23, 2022, Pierce was found guilty of murder in the second degree at trial by a federal jury. At trial, the Government presented evidence that Pierce fatally stabbed the victim multiple times during a dispute before calling a friend, who in turn called 911. The victim sustained at least six stab wounds to the chest, neck, and face, and died on the scene despite attempts by paramedics to administer life-saving treatment. The crime occurred in Choctaw County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Bernard M. Jones, II, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting by assignment, presided over the hearings in Oklahoma City, Oklahoma. Pierce 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.
Former Organized Crime and Gang Section (OCGS) Trial Attorney, Attorney Kristen S. Taylor and OCGS Resident Advisor Attorney Charles R. Walsh represented the United States.
Green Bay Woman Sentenced to 8 years’ Imprisonment for Trafficking Fentanyl disguised as Percocet®Read the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on August 21, 2023, Senior United States District Court Judge William C. Griesbach sentenced Marianna KJ Zimmer (age: 20) to a total sentence of 8 years’ imprisonment and 8 years of supervised release after Zimmer pled guilty to Possession of Fentanyl with Intent to Distribute and Possession of a Firearm as a Convicted Felon, in violation of Title 21, United States Code, Section 841, and Title 18, United States Code, Section 922.
According to court filings, in August 2022, while Zimmer was on probation for a prior felony conviction, Wisconsin probation agents arrested Zimmer and learned that from jail she was directing a friend to hide and destroy evidence of Zimmer’s fentanyl trafficking. Probation agents, with assistance from the Brown County Drug Task Force, successfully recovered and seized over 8,400 fake Percocet® pills containing fentanyl, over $38,500 in US currency, and a stolen and loaded .45-caliber pistol. The fentanyl was in the form of blue pills imprinted with “M30” to mimic the legitimate prescription drug Percocet®. Counterfeit “M30” pills are commonly made by Mexican drug cartels and smuggled into the United States.
In sentencing Zimmer, Judge Griesbach stressed that Zimmer’s fentanyl dealing and unlawful firearm possession were serious offenses that presented a danger to the public, warranting significant punishment and a strong deterrent message to others. The judge also stressed that Zimmer’s offense was aggravated because she posted numerous images and videos of herself on Facebook in which she glamorized the life of a drug dealer, posing with large amounts of cash that she made by distributing drugs.
Legitimate Percocet® contains oxycodone and acetaminophen but not fentanyl. Like fentanyl, oxycodone is a Schedule II controlled substance that can be highly addictive and abused, but fentanyl is more dangerous.
According to the Drug Enforcement Administration (“DEA”), 60% of the counterfeit “Percocet” pills tested in 2022 had a potentially lethal dose of fentanyl, up from 40% in 2021. The following is from a Public Safety Alert posted on the DEA’s website
The DEA Laboratory has found that, of the fentanyl-laced fake prescription pills analyzed in 2022, six out of ten now contain a potentially lethal dose of fentanyl. This is an increase from DEA’s previous announcement in 2021 that four out of ten fentanyl-laced fake prescription pills were found to contain a potentially lethal dose.
. . . .
Last year, the DEA issued a Public Safety Alert on the widespread drug trafficking of fentanyl-laced fake prescription pills in American communities. These pills are largely made by two Mexican drug cartels, the Sinaloa Cartel and the Jalisco (CJNG) Cartel, to look identical to real prescription medications, including OxyContin®, Percocet®, and Xanax®, and they are often deadly. In 2021, the DEA seized more than 20.4 million fake prescription pills. Earlier this year, the DEA conducted a nationwide operational surge to target the trafficking of fentanyl-laced fake prescription pills and, in just over three months, seized 10.2 million fake pills in all 50 states . . .
Fentanyl remains the deadliest drug threat facing this country. It is a highly addictive synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Just two milligrams of fentanyl, the small amount that fits on the tip of a pencil, is considered a potentially deadly dose. According to the CDC, 107,622 Americans died of drug poisoning in 2021, with 66 percent of those deaths involving synthetic opioids like fentanyl. The Sinaloa Cartel and Jalisco Cartel in Mexico, using chemicals largely sourced from China, are primarily responsible for the vast majority of the fentanyl that is being trafficked in communities across the United States.
https://www.dea.gov/alert/dea-laboratory-testing-reveals-6-out-10-fentanyl-laced-fake-prescription-pills-now-contain
This case was investigated by the Brown County Drug Task Force and the Drug Enforcement Administration.
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Grand Jury-August 2023Read the Press Release
Acting United States Attorney Susan Lehr announced the federal Grand Jury for the District of Nebraska has returned 18 unsealed Indictments charging 24 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Dalilio Alconini Flores, age 47, is charged with illegal reentry of a removed alien after an aggravated felony conviction on or about August 6, 2023. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Patrick S. Carey, age 37, of Lincoln, Nebraska, is charged in a two-count Indictment. Count I charges Carey with felon in possession a firearm on or about March 16, 2023 and continuing to on or about March 17, 2023. The maximum possible penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges Carey with possession with intent to distribute 50 grams or more of methamphetamine (actual) and 50 grams or more of methamphetamine (mixture) on or about March 17, 2023. The maximum possible penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
* Alfonso Carillo, a/k/a Alfonso Carrillo, age 26, of Tolleson, Arizona, and Ceslo Carillo, a/k/a Celso Carrillo. a/k/a Celso Carillo-Alvarso, a/k/a Celso Alvardo. age 43, of Beryl, Utah, are charged in a two-count Indictment. Count I charges Alfonso and Celso with conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl and 500 grams or more of cocaine, from on or about January 1, 2023 and continuing to on or about June 27, 2023. The maximum possible penalty if convicted is not less than 10 years’ imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment. Count II charges Alfonso and Celso with possession with intent to distribute 400 grams or more of fentanyl and 500 grams or more of cocaine from on or about January 10, 2023 and continuing to on or about June 27, 2023. The maximum possible penalty if convicted is not less than 10 years’ imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
* Laura Carrazco-Barraza, age 59, is charged with illegal reentry of a removed alien after an aggravated felony conviction on or about August 10, 2023. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Ricardo Castillo Suarez, age 27, is charged with illegal reentry of a removed alien after a felony conviction on or about June14, 2023. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Rogelio Escobar Marroquin, age 44, is charged with illegal reentry of a removed alien after a felony conviction on or about July 13, 2023. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Raymundo Green-Chavez, age 59, is charged with illegal reentry of a removed alien after an aggravated felony conviction on or about July 26, 2023. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Christopher Grutel, age 22, and Victor Henderson, age 23, are charged with felon in possession of ammunition on or about March 16, 2023 and continuing to on or about March 17, 2023. The maximum possible penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Walter William Lopez Ramirez, age 32, is charged with illegal reentry after deportation on or about July 29, 2023. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Michael E. Loviscek, age 46, is charged in a two-count Indictment. Count I charges Loviscek with possession with intent to distribute 50 grams or more of methamphetamine (actual) from on or about an unknown date and continuing to on or about April 3, 2023. The maximum possible penalty if convicted is not less than 15 years’ and up to life imprisonment, a $20,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count II charges Loviscek with possession of a firearm in connection with the drug offense on or about April 3, 2023. The maximum possible penalty if convicted is not less than 5 years’ and up to life imprisonment consecutive to any other sentence, a $250,000 fine, a five year term of supervised release, and a $100 special assessment.
* Valentin Mendoza, Jr., age 43, of San Bernardino, California, is charged with possession with intent to distribute 500 grams or more of methamphetamine (mixture) on or about February 3, 2023. The maximum possible penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
* Gregorio Mina-Falcon, age 35, Jose Luis Garcia-Perez, age 22, Eliuth Montero-Barrera, age 23, and Alexis Rodriguez, age 21, are charged with conspiracy to distribute and possession with intent to distribute 500 grams or more of methamphetamine (mixture) from on or about July 1, 2023, and continuing to on or about August 2, 2023. The maximum possible penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
* Bernardo Ozuna-Rosas, age 33, is charged with illegal reentry after deportation on or about June 13, 2023. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Luis Alberto Puentes-Ortiz, age 31, is charged with illegal reentry after deportation on or about July 26, 2023. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* John C. Shores, Jr., age 54, of Omaha, Nebraska, is charged in a two-count Indictment. Count I charges Shores with attempted sexual exploitation of a minor beginning on or about August 4, 2023 and continuing to on or about August 10, 2023. The maximum possible penalty if convicted is not less than 15 years’ and not more than 30 years’ imprisonment, a $250,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment. Count II charges Shores with attempted enticement of a minor beginning on or about August 4, 2023 and continuing to on or about August 10, 2023. The maximum possible penalty if convicted is not less than 10 years’ and up to a life imprisonment, a $250,000 fine, not less than five-years and up to a life term of supervised release, and a $100 special assessment.
* Gerald D. Storovich, age 43, of Plattsmouth, Nebraska, is charged in a six-count Indictment. Count I charges Storovich with distribution of 50 grams or more of methamphetamine (actual) on or about February 15, 2023. The maximum possible penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment. Count II charges Storovich with distribution of 50 grams or more of methamphetamine (actual) on or about March 2, 2023. The maximum possible penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years and up to a life term of supervised release, and a $100 special assessment. Count III charges Storovich with possession with intent to distribute 5 grams or more of methamphetamine (actual) on or about March 30, 2023. The maximum possible penalty if convicted is not less than 5 years’ and up to 40 years’ imprisonment, a $5,000,000 fine, not less than four years and up to a life term of supervised release, and a $100 special assessment. Count V charges Storovich with felon in possession of a firearm on or about March 30, 2023. The maximum possible penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count VI charges Storovich with possession of a stolen firearm on or about March 30, 2023. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Venetia A. Torres, age 43, and Aaron Torres, age 22, are charged in a two-count Indictment. Count I charges Venetia and Aaron with conspiracy to distribute and possession with intent to distribute 500 grams or more of methamphetamine (mixture) from on or about May 1, 2023 and continuing to on or about June 9, 2023. The maximum possible penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment. Count II charges Venetia with felon in possession of a firearm on or about June 9, 2023. The maximum possible penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Tiffany Alice Wolfe, age 40, is charged with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about April 26, 2023. The maximum possible penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
Fruitland Man Sentenced to 3 Years in Prison for AssaultRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Anderson Buck was sentenced to 37 months in prison. Buck, 40, of Fruitland, and an enrolled member of the Navajo Nation, pled guilty to assault resulting in serious bodily injury on April 28, 2023.
According to court documents, Nov. 17, 2022, Buck and his girlfriend, Jane Doe, were driving around the area of Nenahnezad and were both heavily inebriated. Jane Doe drank to the point of passing out in the passenger seat of Buck’s vehicle. Buck drove to a friend’s house where he left Jane Doe in the car and went inside. While at his friend’s house, Buck consumed more alcohol before deciding to leave an hour later. Outside, Buck tried to wake Jane Doe before he became frustrated and drove away. Bucks’ friend reported that Jane Doe was unconscious and not injured at the time they departed.
About thirty minutes later, Buck arrived at his family’s compound. One of Buck’s relatives exited their residence and observed Buck and Jane Doe in the car. When they got closer, they saw that Jane Doe was slumped over with a bloody face. When Buck’s relative asked hat had happened, Buck replied “she was talking [expletive].” Buck’s relatives called the police, but Buck departed the compound on foot before police and medical personnel arrived.
Buck’s mother later brought him to be interviewed by law enforcement. Buck claimed that he and Jane Doe had gone to an unknown residence where three unknown females had beaten Jane Doe. Subsequent investigation revealed evidence that Jane Doe had been beaten in Buck’s vehicle which was inconsistent with Buck’s version of the events.
Jane Doe was hospitalized in the ICU for several weeks following the incident before she was discharged to a rehabilitation hospital. She suffered a blown-out eye socket, brain bleeding, and other severe injuries in the assault. Jane Doe passed away on April 18, 2023, ten days before Buck entered his guilty plea, after suffering from various maladies including after-effects of the assault.
Upon his release from prison, Buck will be subject to 3 years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Criminal Investigations. Assistant United States Attorney Alexander F. Flores is prosecuting the case.
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Four from Peoria Charged with Conspiring to Steal Firearms from Licensed Dealers in Spring Valley, Taylorville, Le Roy, Lincoln, Decatur, and BloomingtonRead the Press Release
PEORIA, Ill. – A federal criminal complaint filed August 21, 2023, charges four people from Peoria, Illinois, with conspiring to steal firearms from six different locations in central Illinois between August 14, 2023, and August 18, 2023. Terrence Daniels, 23; Dezmond Hardy, 22; Erika Garner, 21; and Shaleik Ward, 19, are each charged with one count of conspiring to steal guns from a federal firearms licensee. All four were arrested on Friday, August 18, 2023, and the complaint and affidavit were unsealed at their court appearances on Monday, August 21, 2023, before U.S. Magistrate Judge Jonathan E. Hawley in Peoria. At the conclusion of their respective hearings, all four were remanded to the custody of the U.S. Marshals Service pending further proceedings.
As alleged in the complaint affidavit, on August 14, 2023, police officers were dispatched to an attempt burglary at Mean Metal, a gun dealer in Spring Valley, Illinois, and discovered that a glass window of the business had been shattered. On August 15, 2023, officers responded to an attempt burglary at Powder Keg Outfitters, a gun dealer in Taylorville, Illinois. As with the first attempt burglary, officers discovered that a glass window on the business had been shattered.
Additional attempt burglaries were reported at Guns and Glory in Le Roy, Ill., Tactical Bunker in Lincoln, Ill., Archers Alley in Decatur, Ill., and Smiley’s Sport Shop in Bloomington, Ill.
If convicted of conspiring to steal firearms, each defendant faces up to five years’ imprisonment. The charges also carry up to three years of supervised release and a possible fine of up to $250,000.
The arrests followed a joint investigation by multiple law enforcement agencies, including agency members of the Peoria Area Federal Firearms Task Force as well as the Spring Valley Police Department, the Taylorville Police Department, and the Peoria Police Department. The case is being prosecuted by Assistant U.S. Attorney Ronald L. Hanna.
Members of the public are reminded that the charges in a complaint are merely accusations, and a defendant is presumed innocent unless proven guilty in a court of law.
Four Individuals Charged in Major Mail Theft and Bank Fraud SchemeRead the Press Release
BENTON, Ill. – Four men are facing multiple federal charges for mail theft, bank fraud, identity theft and money laundering stemming from an apparent scheme involving postal collection boxes in Carbondale.
Isaiah C. Jordan, 29, of Urbana, Illinois, is facing one count of conspiracy to commit bank fraud, one count of theft of a postal key, eight counts of mail theft, thirteen counts of bank fraud, three counts of aggravated identity theft and one count of conspiracy to commit money laundering.
Demarius L. Flakes, 29, of Blue Island, Illinois, is facing one count of conspiracy to commit bank fraud, three counts of mail theft, six counts of bank fraud and one count of conspiracy to commit money laundering.
Arraigned in federal court on Monday, Brian R. Nevils, 24, of South Holland, Illinois, is facing one count of conspiracy to commit bank fraud, one count of mail theft, one count of aggravated identity theft and one count of conspiracy to commit money laundering.
Quentin S. Abrams, 24, of Charleston, Illinois, is facing one count of conspiracy to commit bank fraud, one count of mail theft, one count of aggravated identity theft and one count of conspiracy to commit money laundering.
“Communities rely on the U.S. Postal Service to communicate with loved ones, pay bills and conduct official business,” said U.S. Attorney Rachelle Aud Crowe. “To protect the integrity of USPS, criminals who target mail collection boxes to steal checks and commit fraud will face serious consequences.”
“This indictment is a statement that mail theft will not be tolerated,” said Inspector in Charge Ruth Mendonça who leads the Chicago Division of the U.S. Postal Inspection Service, which includes the St. Louis Field Office. “The Postal Inspection Service will continue to partner with other law enforcement agencies to collectively pursue criminals who victimize postal customers.”
"This announcement of indictments in our community's mail fraud investigation is a testament to the tireless efforts of our police officers and the close collaboration with the U.S. Postal Inspection Service and the U.S. Attorney's Office,” said Carbondale Police Chief Stan Reno. “The alleged actions that have surfaced through this investigation are deeply concerning, as they undermine the trust and safety of our community. I want to assure the public that we will continue to work diligently to protect and serve our community, holding those responsible for these crimes accountable. Together, we will not tolerate criminal activity that threatens the well-being of our citizens."
According to the indictment, the alleged fraud scheme operated from approximately March 26 through at least July 1, 2020. The defendants are accused of stealing and altering more than 100 checks mailed by more than 50 postal customers. The total estimated loss exceeds $400,000.
Jordan, Flakes, Nevils and Abrams are all charged for their alleged involvement in the scheme. According to court documents, the defendants used a stolen master key to gain access to mail collection boxes throughout Carbondale. The conspiracy involved altering the payees and amounts of the stolen checks, depositing the checks into bank accounts of co-conspirators and then transferring the funds into their own accounts or of their associates.
The scheme involved the Bank of Carbondale, First Mid Bank & Trust, Firth Southern Bank, Legence Bank, Regions Bank and Wells Fargo Bank—all of which are insured by the Federal Deposit Insurance Corporation (FDIC).
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Jordan, Nevils and Abrams were taken into federal custody, but Flakes is a fugitive wanted by the U.S. Marshals Service. Anyone with information about his whereabouts are encouraged to contact the Marshals in southern Illinois.
The Carbondale Police Department and the U.S. Postal Service are jointly investigating the case. Assistant U.S. Attorney Scott Verseman is prosecuting the case.
Former bank teller pleads guilty to stealing nearly $90,000 deposited by Georgia convenience storeRead the Press Release
STATESBORO, GA: A former Candler County bank teller faces prison time and substantial restitution after pleading guilty to skimming money from a convenience store’s deposits.
Kayla Monroe Evans, 32, of Metter, Ga., awaits sentencing after pleading guilty to Bank Fraud, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. The guilty plea subjects Evans to a statutory penalty of up to 30 years in prison, along with substantial fines and restitution, followed by up to three years of supervised release upon completion of any prison term. There is no parole in the federal system.
“Bank customers count on their financial institutions to operate with honesty and integrity, and Kayla Evans violated that trust,” said U.S. Attorney Steinberg. “This plea offers assurance that Evans will be held accountable for her theft.”
As described in the plea agreement and in court, Evans worked as a teller for the Synovus Bank in Metter, where a local convenience store kept its account. An auditor for the store began noticing substantial discrepancies between the amount of cash presented to the bank for deposit compared to the amount credited to the store and worked with the bank to determine the cause.
A subsequent investigation found that from July 2019 through February 2021, Evans personally handled the store’s deposits, frequently skimming large amounts of cash for her personal use from the amount presented and crediting a smaller deposit to the store. In total, Evans stole approximately $87,748 from the convenience store’s deposits. As part of her plea, Evans agrees to pay restitution for the full loss caused by her criminal conduct, and to never seek employment in any financial institution.
U.S. District Court Chief Judge J. Randal Hall will schedule sentencing in the case following a pre-sentence investigation by U.S. Probation Services.
“We are pleased to work with the U.S. Attorney’s Office in bringing to justice those who commit bank fraud for their own personal gain,” said Brian Tucker, Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau.
The federal investigation was led by the Office of Inspector General for the Federal Reserve Board and the Consumer Financial Protection Bureau. The investigation received support from the Candler County Sheriff’s Office, the District Attorney’s Office for the Middle Judicial Circuit, and the Georgia Bureau of Investigation. The case was prosecuted for the United States by Assistant U.S. Attorney Matthew A. Josephson.
Former Post Office Manager Sentenced to over Three Years in Federal Prison for Mail Theft and Bank Fraud ConspiracyRead the Press Release
INDIANAPOLIS- James Lancaster, 42, of Indianapolis, Indiana, has been sentenced to 40 months in federal prison after pleading guilty to conspiracy to commit bank fraud and mail theft. A co-conspirator, Jordan McPhearson, of Blue Island, Illinois was sentenced in 2022 to 42 months in federal prison after pleading guilty to conspiracy to commit bank fraud.
According to court documents, James Lancaster was employed as the Manager of Customer Service at the New Augusta Post Office in Indianapolis, Indiana. Between May 11, 2020, and June 23, 2021, Lancaster used his position at the Post Office to steal checks from the mail. Lancaster gave the stolen checks to Jordan McPhearson, sometimes receiving cash in exchange. McPhearson fraudulently negotiated the stolen checks, depositing them into an account belonging to someone other than the intended payee. Occasionally, McPhearson provide stolen checks to an additional co-conspirator, Lavaris Yarbrough, who fraudulently negotiated them.
Throughout the course of the conspiracy, Lancaster stole more than 270 pieces of U.S. mail from the New Augusta Post Office. This mail contained checks from more than 50 different local businesses, including a non-profit dedicated to cancer research. In total, the value of the stolen checks was approximately $1.7 million.
The final defendant, Lavaris Yarbrough will be sentenced in late September.
The United States Postal Service- Office of Inspector General investigated this case with valuable assistance provided by the U.S. Postal Inspection Service. The sentences were imposed by U.S. District Court Chief Judge, Tanya Walton Pratt and Judge Sarah Evans Barker. The courts ordered that Lancaster and McPhearson be supervised by the U.S. Probation Office for 3 years following their release from federal prison and pay $88,376.12 in restitution.
U.S. Attorney Myers thanked Assistant United States Attorney Adam Eakman, who prosecuted this case.
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Former New Jersey Corrections Officer Charged with Cryptocurrency Fraud Scheme that Targeted Law Enforcement, Fire Personnel, and Other First RespondersRead the Press Release
NEWARK, N.J. – A former New Jersey corrections officer was arrested today for orchestrating two different fraud schemes, including a cryptocurrency scheme that resulted in losses of more than $600,000, U.S. Attorney Philip R. Sellinger announced.
John DeSalvo, 47, of Marmora, New Jersey, is charged by criminal complaint with two counts of wire fraud, two counts of securities fraud, and two counts of money laundering related to the two fraud schemes. He is scheduled to appear this afternoon before U.S. Magistrate Judge André M. Espinosa in Newark federal court.
“This defendant, a former New Jersey corrections officer, is alleged to have committed two brazen investment fraud schemes in which he falsely promised huge returns to obtain hundreds of thousands of dollars from unsuspecting investors. In one scheme, DeSalvo is alleged to have targeted law enforcement and first responders to invest in a digital token that he falsely claimed was SEC-approved and listed on cryptocurrency exchanges. In the other, he is alleged to have obtained investments by promising extraordinary rates of return that we allege were too good to be true. Once DeSalvo got his investors’ money, he is alleged to have spent it on himself, paying personal expenses and funding his own investments. This Office is committed to rooting out investment and securities fraud and protecting investors. By today’s charges, we intend to hold this defendant accountable for these alleged fraud schemes and prevent him from potentially victimizing anyone else.”
U.S. Attorney Philip R. Sellinger
“We allege DeSalvo created and marketed a cryptocurrency to first responders as a ‘crypto pension’ that could supplement their existing pensions,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Our investigation shows instead of actually making the rate of return he boasted about, he allegedly used hard-earned money from firefighters, police officers, EMTs and other public servants as his personal bank account. We are asking anyone who may believe they are a victim of DeSalvo to please reach out to the FBI at 1-800-CALL-FBI.”
According to documents filed in this case and statements made in court:
The Blazar Token Fraud
DeSalvo was the creator and promoter of a digital token known as “Blazar Token,” (Blazar) which DeSalvo marketed to police, fire personnel, EMTs, and other first responders as a “crypto pension” that could be used to supplement investors’ existing pension plans. DeSalvo promised investors that Blazar would offer “more stability than any other token” and that the value of Blazar would “continue to rise over time similar to any investment fund, only at a much higher rate of success.”
Beginning in late 2021, DeSalvo used social media platforms to fraudulently solicit investments in Blazar through a series of misrepresentations including that: Blazar was in the process of becoming, or was already, a securitized token approved by the Securities and Exchange Commission; and Blazar could be purchased through payroll deductions and ACH transactions. DeSalvo additionally falsely told investors that Blazar had been approved for inclusion on several well-known cryptocurrency exchanges and guaranteed investors rates of return of more than 20 percent with “ZERO risk.”
In total, DeSalvo raised more than $620,000 from more than 200 investors in Blazar. After receiving investor funds, DeSalvo frequently used the funds for various illicit purposes unrelated to Blazar including personal expenses, day-trading in various volatile cryptocurrencies, and payments to prior investors in the manner of a Ponzi scheme.
In May 2022, DeSalvo sold off more than 41 billion of his own Blazar tokens, which caused the price of the token to drop precipitously. The value of Blazar never recovered, causing most investors to lose their entire investments.
The Brokerage-1 Fraud
Between January 2021 and May 2021, DeSalvo managed and solicited investment in an investment group through Brokerage-1, an online trading platform. DeSalvo marketed the investment group largely through social media posts in which DeSalvo falsely touted his success as an investor. DeSalvo claimed to potential investors, “I have been averaging close to 1200 % over the last 2 years. I am in the top 1,000th percent in the world. That’s the truth, the return rates I have been averaging are so high that I have people throwing money at me to invest.”
In total, DeSalvo solicited approximately $100,000 in investments from approximately 20 individuals for the investment group. After receiving the funds, DeSalvo engaged in trading activities for a brief period of time before transferring all the funds out of the investment group’s account at Brokerage-1 and into personal accounts held by DeSalvo at Brokerage-1 and Coinbase. DeSalvo then used the funds for various non-investment purposes such as credit card payments, personal trading in volatile cryptocurrencies, and payments to a contractor who performed work on DeSalvo’s personal residence.
After draining the investment group’s account, DeSalvo advised the investment group investors that their funds had been lost due to poor market conditions and provided the investors with false trading records purporting to show the trading activity that DeSalvo engaged in on behalf of the investment group.
The counts of wire fraud carry a maximum potential penalty of 20 years in prison and a fine of $250,000. The counts of securities fraud carry a maximum potential penalty of 20 years in prison and a fine of $5 million. The counts of money laundering carry a maximum potential penalty of 20 years in prison and a fine of $500,000.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against DeSalvo today based on the same conduct.
U.S. Attorney Sellinger credited special agents of the FBI - Newark Atlantic City Resident Agency, under the direction of Special Agent in Charge Dennehy, and detectives from the New Jersey Division of Criminal Justice, Cyber Crimes Bureau, under the direction of Acting Director Derek Nececkas, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Anthony Torntore, Chief of the U.S. Attorney’s Cybercrime Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
desalvo.complaint.pdf