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11 August 2023
Four East Tennessee Doctors Convicted in Drug Trafficking and Fraud SchemeRead the Press Release
FRANKFORT, Ky. – A federal jury sitting in Frankfort convicted four Tennessee physicians on Friday of conspiracy to illicitly prescribe controlled substances and related fraud and money laundering offenses.
The defendants worked together in two east Tennessee clinics, called EHC Medical, that purported to offer treatment for opioid use disorder. The evidence presented established that the defendants agreed to unlawfully prescribe buprenorphine (the controlled substance in the drug known by its trade name, Suboxone) and benzodiazepine-class drugs, including clonazepam.
Evann Herrell, Mark Grenkoski, Keri McFarlane, and Stephen Cirelli were each physicians who worked for EHC Medical in Harriman and Jacksboro, Tenn. Robert Taylor, who opened EHC Medical in 2013 and operated it through late 2018, pleaded guilty to a drug trafficking conspiracy charge and was sentenced earlier this year to 30 months in prison. He forfeited $13.8 million and paid an additional fine of $200,000. Lori Barnett, a registered nurse who helped Taylor supervise day-to-day operations, and three other physicians – Matthew Rasberry, Helen Bidwaid, and Eva Misra – also pleaded guilty to related drug or money laundering charges and are awaiting sentencing.
At trial, the United States presented evidence of a wide-ranging conspiracy to provide prescriptions for high doses and dangerous combinations of Suboxone and benzodiazepines to cash-paying customers. These drugs were being sold, traded, and abused throughout southeastern Kentucky. The evidence further established that the Defendants engaged in a conspiracy to falsify medical records, while putatively treating patients, and that Herrell, Grenkoski, and McFarlane conspired to cause millions of dollars in fraudulent submissions to Medicare, Kentucky Medicaid, and other health benefit programs for prescription drugs and urine drug testing.
“These physicians focused on their own greed and self-interests, not the needs of their patients,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Their illegal scheme had a damaging impact on their patients, fraudulently preyed on health benefit programs, and undermined the public’s faith in legitimate medical practices in this field. We, and our law enforcement partners, remain committed to holding those who take advantage of the medical licenses entrusted to them, to profit through unlawful prescriptions, accountable. The opioid epidemic created an acute need for responsible substance abuse treatment. Drug trafficking, operating under the guise of addiction treatment, is another despicable consequence of this problem.”
United States Attorney Shier; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation; and Tamala E. Miles, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG), jointly announced the guilty verdict.
The Defendants are scheduled to appear for sentencing on December 4, 2023. The statutory maximum penalty for the drug trafficking conspiracy is 10 years, for the conspiracy to falsify documents in connection with delivery of health care services is 5 years, and for the fraud and money laundering counts is 20 years. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence. The defendants also face potential fines, a forfeiture money judgment, and a judgment of restitution, as ordered by the Court.
The investigation was conducted by the DEA, IRS, and HHS, with support from the Kentucky Office of the Attorney General.
The United States was represented in the case by Assistant U.S. Attorneys Greg Rosenberg, Amanda Huang, and Andrew Smith. The case was prosecuted as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force, an initiative focusing on significant drug trafficking and money laundering criminal organizations.
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Former U.S. Postal Service Mail Carrier Sentenced for Stealing Mail from Customers in SanteeRead the Press Release
NEWS RELEASE SUMMARY – August 11, 2023
SAN DIEGO – Former U.S. Postal Service mail carrier Tracy Rumley of El Cajon was sentenced in federal court this morning to five years of probation and 200 hours of community service for stealing mail from customers on her postal route in the Santee area of San Diego.
When imposing sentence, U.S. District Judge Janis L. Sammartino said, “Stealing mail is not the way to go. You will be caught, and you will be prosecuted.”
During the evening of November 21, 2022, an off-duty San Diego Police detective saw a woman in a hooded sweatshirt open a communal mailbox at his apartment complex in Santee, California and remove multiple pieces of mail. As the detective approached, the female closed the mailbox and fled in a White Nissan. After getting the license plate of the vehicle, the detective determined that Rumley resided at the same address as listed for the vehicle registration and referred the matter to the U.S. Postal Service.
Rumley had been placed on administrative leave from her employment at the Santee Post Office earlier that month and was terminated by the Postal Service on December 12, 2022. After securing a search warrant for the residence, on December 21, 2022, United States Postal Service Inspectors found more than 1,500 pieces of mail in Rumley’s residence including, but not limited to, gift cards, credit cards and even several Christmas presents that had all been stolen from nearly 900 customers along her mail delivery route in Santee. Inspectors also found the keys she was given as a mail carrier to access mailboxes. The keys were hidden in a potted plant within her bedroom. In her plea agreement, Rumley admitted that, even after being placed on administrative leave, she kept those keys though she was not authorized to do so and used them to continue to steal mail even after she was terminated.
The government’s sentencing papers quoted several statements given by the victims of Rumley’s crimes. Those statements emphasized what Judge Sammartino observed was a “betrayal” of duty by the victims’ mail carrier. For example, a child who had been impacted by Rumley’s theft commented that, “I felt shocked because I got robbed by the mail lady.” An adult victim said, “She played us for idiots.”
“When customers entrust the U.S. Postal Service with their letters and packages, they expect each and every piece will be delivered to its final destination,” said Acting U.S. Attorney Andrew R. Haden. “The U.S. Attorney’s Office will zealously pursue those whose actions impact the integrity of our mail delivery system to achieve justice for the victims.” Haden thanked former Special Assistant U.S. Attorney Jennifer Luce and the U.S. Postal Service Office of Inspector General for their excellent work on this case.
“The sentencing in this case demonstrates the U.S. Postal Inspection Service’s commitment to protect the sanctity of the U.S. Mail and to ensure the public’s trust in the Postal Service by holding those that commit theft accountable for their actions,” said Carroll Harris, Inspector in Charge of the Los Angeles Division.
DEFENDANT Case Number 23cr0216-JLS
Tracy Rumley Age: 44 El Cajon, CA
SUMMARY OF CHARGES
Count 1: Keys or Locks Stolen – Title 18, U.S.C., Section 1704
Maximum penalty: Ten years in prison and $250,000 fine
Count 2: Theft of Stolen Mail Matter – Title 18, U.S.C., Section 1708
Count 3: Theft of Mail by Postal Employee – Title 18, U.S.C., Section 1709
Maximum penalty (Counts 2 & 3): Five years in prison and $250,000 fine
AGENCY
U.S. Postal Inspection Service
Former Tennessee State Senator and Co-Conspirator Sentenced for Campaign Finance SchemeRead the Press Release
Former Tennessee State Senator and practicing attorney Brian Kelsey was sentenced today to one year and nine months in prison for violating campaign finance laws and conspiring to defraud the Federal Election Commission (FEC) as part of a scheme to benefit his 2016 campaign for U.S. Congress.
According to court documents, Kelsey, 45, of Alexandria, Virginia, secretly and unlawfully funneled money from multiple sources, including his own Tennessee State Senate campaign committee, to his federal campaign committee. To carry out the scheme, Kelsey conspired with others, including Joshua Smith, who owned a members-only social club in Nashville, of which Kelsey was a member, and controlled a Tennessee political action committee affiliated with the club. Kelsey, Smith, and others caused a national political organization to make illegal and excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy, which caused false reports of contributions and expenditures to be filed with the FEC.
“The defendants attempted to hide from voters how Kelsey raised and spent campaign money,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The integrity of our elections is essential to democracy, and voters should know how candidates raise and spend campaign dollars. The Department will continue to work alongside our law enforcement partners to uncover and prosecute campaign finance schemes designed to evade disclosure, and to ensure that violations of these laws carry a high cost.”
“Brian Kelsey intentionally violated federal campaign finance laws and his oath as a state senator in order to deny Tennessee voters their right to make informed decisions about his candidacy for Congress,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “The court’s sentence today reflects the seriousness of his crimes and is a strong reminder of our commitment to root out public corruption and ensure the integrity of federal elections.”
Kelsey and his co-conspirators orchestrated the concealed movement of $91,000 – $66,000 of which came from Kelsey’s State Senate campaign committee, and $25,000 of which came from a nonprofit corporation that publicly advocated on legal justice issues – to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election. Kelsey and his co-conspirators also caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures.
“The sentence handed down today makes it clear that no one is above the law,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI diligently investigates campaign finance fraud to ensure that U.S. elections are free from unfair influence, and anyone caught attempting to scheme their way into office will be held accountable.”
Joshua Smith was also sentenced today to five years of probation for aiding and abetting the solicitation, receipt, direction, transfer, and spending of soft money in connection with a federal election.
The FBI Memphis Field Office investigated the case.
Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney Amanda Klopf for the Middle District of Tennessee, and Assistant U.S. Attorney David Pritchard for the Western District of Tennessee prosecuted the case.
Former St. Louis County Realty Company Employee Sentenced to Prison for $487,000 FraudRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Friday sentenced a former employee of a St. Louis County realty company to three years in prison for embezzling $487,000 from her employer.
Crystal Hendrix, 50, of Festus, was also fined $10,000 and ordered to repay the money she stole.
Hendrix handled payroll as part of her duties with the real estate company and had access to the company bank accounts. From about Jan. 8, 2018 to Dec. 9, 2020, Hendrix sent over 140 payments totaling approximately $483,037 to her own bank account. Hendrix used the money at restaurants and to buy a vehicle, her plea agreement says.
Hendrix pleaded guilty in March to three counts of wire fraud.
The U.S. Secret Service investigated the case. Assistant U.S. Attorneys Gwendolyn Carroll and Edward Dowd III prosecuted the case.
Former Oklahoma Police Officer Indicted for Sexual Assault and ObstructionRead the Press Release
A federal grand jury in Muskogee, Oklahoma, returned a three-count indictment, unsealed today, charging former Savanna Police Department (SPD) police officer Jeffery Scott Smith Jr. with a federal civil rights violation for sexually assaulting a victim while acting under color of law and obstructing justice.
According to the indictment, on Nov. 2, 2022, in Pittsburg County, Oklahoma, Jeffery Scott Smith Jr., 35, while on duty as an SPD police officer, conducted a traffic stop on a car in which the victim was a passenger. Count one of the indictment charges Smith with depriving the victim of her right to bodily integrity when he sexually assaulted the victim during the traffic stop. That indictment alleges that Smith’s conduct resulted in bodily injury to the victim and included the commission of a nonconsensual sexual act with the victim. Counts two and three of the indictment charge Smith with knowingly altering, concealing, covering up and falsifying an SPD record by deactivating his SPD body worn camera and SPD dashboard camera during the traffic stop, with the intent to impede, obstruct, and influence an investigation into his sexual misconduct.
If convicted, Smith faces a maximum sentence of 40 years in prison on the civil rights count and 20 years in prison on each of the obstruction of justice counts.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Christopher J. Wilson for the Eastern District of Oklahoma, and Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office made the announcement.
The FBI Oklahoma City Field Office is investigating the case, with assistance from the Oklahoma State Bureau of Investigation and the Pittsburg County Sheriff’s Office.
Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Clay Compton for the Eastern District of Oklahoma are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IndictmentFormer Oklahoma Police Officer Indicted for Sexual Assault and ObstructionRead the Press Release
WASHINGTON – A federal grand jury in Muskogee, Oklahoma, returned a three-count indictment, unsealed today, charging former Savanna Police Department (SPD) police officer Jeffery Scott Smith Jr. with a federal civil rights violation for sexually assaulting a victim while acting under color of law and obstructing justice.
According to the indictment, on Nov. 2, 2022, in Pittsburg County, Oklahoma, Jeffery Scott Smith Jr., 35, while on duty as an SPD police officer, conducted a traffic stop on a car in which the victim was a passenger. Count one of the indictment charges Smith with depriving the victim of her right to bodily integrity when he sexually assaulted the victim during the traffic stop. That indictment alleges that Smith’s conduct resulted in bodily injury to the victim and included the commission of a nonconsensual sexual act with the victim. Counts two and three of the indictment charge Smith with knowingly altering, concealing, covering up and falsifying an SPD record by deactivating his SPD body worn camera and SPD dashboard camera during the traffic stop, with the intent to impede, obstruct, and influence an investigation into his sexual misconduct.
If convicted, Smith faces a maximum sentence of 40 years in prison on the civil rights count and 20 years in prison on each of the obstruction of justice counts.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Christopher J. Wilson for the Eastern District of Oklahoma, and Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office made the announcement.
The FBI Oklahoma City Field Office is investigating the case, with assistance from the Oklahoma State Bureau of Investigation and the Pittsburg County Sheriff’s Office.
Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Clay Compton for the Eastern District of Oklahoma are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Chief Financial Officer sentenced to prison for falsifying accounting entries for publicly traded Vancouver, Washington staffing firmRead the Press Release
Tacoma – The former Chief Financial Officer of Barrett Business Services, Inc. (BBSI) of Vancouver, Washington, was sentenced today in U.S. District Court in Tacoma to 15 days in federal prison for falsely certifying the company’s 2013 annual report, announced Acting U.S. Attorney Tessa M. Gorman. James Miller, 61, of Washougal, Washington, pleaded guilty on November 4, 2022, following years of shareholder litigation and a Security and Exchange Commission (SEC) fraud investigation. At the sentencing hearing Chief U.S. District Judge David G. Estudillo said, “The entries were deliberate – you knew what you were doing…. We have to be able to rely on the fact that financial statements are accurate.”
“As a former auditor and CPA, Mr. Miller understood the importance of accurately disclosing financial information,” said Acting U.S. Attorney Gorman. “Nevertheless, he made fraudulent entries 29 times, totaling over $12 million. He ‘cooked the books’ and then certified the financial reports as accurate – keeping shareholders and company executives in the dark about the fraudulent entries for three years.”
According to records filed in the case, between 2008 and 2016, Miller served as CFO of Barrett Business Services Inc. The company provided human resources functions for other businesses. One of the services BBSI provided was calculating and paying workers compensation obligations for its customers. The amount of workers’ compensation paid out was a key indicator in assessing the company’s expenses.
Between 2012 and 2013, Miller made accounting entries that understated the amount by which the workers compensation expense had increased, and instead attributed $12 million of workers’ compensation expense to payroll taxes and other costs. Miller’s accounting entries violated Generally Accepted Accounting Principles and concealed potentially important trend from analysts evaluating the company.
After making each false entry, Miller directed a staff accountant to initial the entry. This created the appearance that the staff accountant had made the entries, when in fact Miller had done so.
Even as he was preparing the false entries, Miller exercised his options to sell tens of thousands of shares of BBSI stock, selling $2.4 million worth of shares in just two days in 2013.
In recommending that the court sentence Miller to ten months in prison, Assistant United States Attorney Seth Wilkinson noted, “When Miller executed those (stock) trades, he knew BBSI’s actuary had reported a substantial increase in workers’ compensation expense. And as Miller admitted in his SEC testimony, he also knew this was an important expense for the company. But, because Miller had secretly gamed BBSI’s accounting, the public—including those who purchased Miller’s stock—did not have this knowledge.”
The case was investigated by the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorney Seth Wilkinson.
Former Army Master Sergeant Sentenced for Child PornographyRead the Press Release
NEW BERN, N.C. – A former army Master Sergeant was sentenced today to 76 years’ imprisonment followed by lifetime supervised release for Distribution and Receipt of Child Pornography.
According to court documents and other information presented in court, Joshua Robert George Glardon, 41, was investigated by the Cumberland County Sheriff’s Office and the North Carolina State Bureau of Investigation in July 2021 for child exploitation offenses.
The investigation began when the National Center for Missing and Exploited Children received three CyberTips from Kik social media that one of its users had uploaded child sexual abuse material on multiple days. The IP address used to upload the images belonged to Joshua Glardon who lived in Fayetteville. Two of the images in the CyberTip appeared to be homemade images. Pursuant to a search warrant, Glardon’s digital devices were seized. After a forensic analysis was complete, law enforcement found thousands of images of child sexual abuse material on his phone. Included in those files were images of the child that appeared to be homemade images that were a part of the CyberTips.
Law enforcement officers were able to identify the child through chat messages Glardon had with Amy Huddleston. When law enforcement learned Huddleston had access to this child, a search warrant was executed on Huddleston’s residence. In an interview, Huddleston confessed to allowing Glardon to rape this child. She admitted she would take images and videos of the child, including videos of her performing sexual acts on the child, and send them to Glardon. A forensic analysis of Huddleston’s digital devices revealed chat conversations wherein Glardon and Huddleston discussed the sexual abuse of the child.
Glardon would then distribute the child’s images over the internet where he encouraged others to further share the images. Law enforcement located nearly 50 conversations wherein Glardon had shared the child’s image and encouraged others to fantasize about brutally raping the child.
His co-defendant, Amy Huddleston, was sentenced in June to 30 years’ imprisonment.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. U.S. District Judge Louise W. Flanagan presided over the sentencing. The Cumberland County Sheriff’s Office and the North Carolina State Bureau of Investigation investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR98-1FL.
Five Men Arrested in Sex Trafficking OperationRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that the South Dakota Division of Criminal Investigation (DCI), the South Dakota Internet Crimes Against Children Task Force (ICAC), U.S. Homeland Security Investigations (HSI), Ellsworth AFB Office of Special Investigations, the Pennington County Sheriff’s Office, and the Rapid City Police Department conducted a joint sex-trafficking operation during the 2023 Sturgis Motorcycle Rally. The operation began on August 4, 2023, and continued through August 10, 2023.
As a result, the following five men were arrested and charged:
Burton Dave Chief, Jr., 35, Rapid City – Attempted Sexual Exploitation of a Minor
Vincent Alberto Barrios, 42, Box Elder - Attempted Enticement of a Minor Using the Internet
James Halen Dreamer, 41, Rapid City - Attempted Enticement of a Minor Using the Internet
James Peter Fast Horse, 45, Rapid City - Attempted Enticement of a Minor Using the Internet
Jacob Chinni Wilson, 38, Rapid City - Attempted Enticement of a Minor Using the Internet
“Working with our law enforcement partners, we were able to take more dangerous sexual predators off the streets of South Dakota this week,” said U.S. Attorney Alison J. Ramsdell. “We appreciate the exceptional collaboration between state, local, and federal agencies that made this operation a success.”
The mandatory minimum penalty upon conviction for Attempted Sexual Exploitation of a Minor is 15 years up to 30 years in federal prison; and any term of years, not less than five, up to lifetime supervised release.
The mandatory minimum penalty upon conviction for Attempted Enticement of a Minor Using the Internet is 10 years up to life in federal prison; and any term of years, not less than five, up to lifetime supervised release.
The charges are merely accusations, and all five defendants are presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The cases are being federally prosecuted by Assistant U.S. Attorneys Sarah B. Collins and Heather Knox.
Five Charged for Conspiring to Stage Automobile AccidentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that ANTOINE CLARK (“CLARK”), age 33, of New Orleans, Louisiana; DIMITRI FRAZIER (“FRAZIER”), age 31, of Westwego, Louisiana; SHIRLEY HARRIS (“HARRIS”), age 38, of New Orleans, Louisiana; ADONTE TURNER (“A. TURNER”), age 25, of New Orleans, Louisiana; and TIFFANY TURNER (“T. TURNER”), age 52, of New Orleans, Louisiana were indicted on August 10, 2023.
The indictment charges these defendants with intentionally staging automobile accidents with tractor-trailers in New Orleans to defraud trucking and insurance companies . According to the indictment, defendants CLARK and HARRIS intentionally collided with a tractor-trailer on April 24, 2017, in the area of Interstate 10 near the Crowder Boulevard exit in New Orleans. The indictment also alleges that, on November 13, 2017, FRAZIER, A. TURNER, and T. TURNER intentionally struck a tractor-trailer in the area of Interstate 10 near Paris Road in New Orleans. CLARK, HARRIS, FRAZIER, A. TURNER, and T. TURNER made false police reports, filed fraudulent lawsuits, lied during deposition testimony, and sought unnecessary medical treatment in furtherance of their fraudulent claims.
These defendants were all charged with one (1) count of Conspiracy to Commit Wire Fraud in violation of Title 18, United States Code, Section 371. CLARK and HARRIS were also charged with two (2) counts of Wire Fraud in violation of Title 18, United States Code, Section 1343. If convicted, the defendants face a maximum penalty of five (5) years for the conspiracy count and twenty (20) years as to the Wire Fraud counts. Upon their release from prison, each defendant can be placed on a term of supervised release for up to five (5) years and fined up to $250,000.00 per count. A $100 mandatory special assessment fee per count is also applicable.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorneys’ Maria Carboni, Brandon Long, and Edward Rivera, all of the Financial Crimes Unit and, Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
Felon Who Threatened Girlfriend with a Gun Sentenced to Eight Years in Federal PrisonRead the Press Release
A man who possessed a firearm as a felon was sentenced yesterday to 96 months in federal prison.
Nethaniah Gordon, age 28, received the prison term after a March 16, 2023, guilty plea to one count of possessing a firearm as a felon.
During a domestic dispute, Gordon, who was convicted on January 13, 2014, of a controlled substance violation, possession of marijuana with intent to deliver, and prohibited from possessing firearms, struck his girlfriend in the face and head multiple times, verbally threatened her, and pointed a gun at different parts of her body. Gordon has a history of domestic abuse.
Gordon was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gordon was sentenced to 96 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Gordon is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Elizabeth Dupuich and Special Assistant United States Attorney Nicole L. Nagin, and it was investigated by the Independence Police Department.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 23-CR-2006.
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Federal Jury Finds Bloods Gang Member Guilty of Drug Distribution and Firearms ViolationsRead the Press Release
ST. PAUL, Minn. – A federal jury found a Prior Lake man guilty of possession with intent to distribute methamphetamine, possession of a firearm as a felon, and possession of a firearm in furtherance of drug trafficking, announced U.S. Attorney Andrew M. Luger.
Following a three-day trial before Senior Judge Susan Richard Nelson, Nathan John Walz, 35, a member of the Minneapolis Bloods street gang, was found guilty of possession with intent to distribute methamphetamine, possession of a firearm as a felon, and possession of a firearm in furtherance of drug trafficking. A sentencing hearing will be scheduled at a later date.
According to evidence presented at trial, on November 1, 2022, at approximately 7:50 a.m., officers with the Minneapolis Police Department were dispatched to the Lowry Hill neighborhood after receiving a report of a “slumper” in a car. Officers approached the car and identified the individual slumped over in the driver’s seat as Walz. Officers observed a handgun in plain view on the center console of the car and took Walz into custody. The handgun was a stolen Kimber, model Super Custom Carry, .45 caliber semi-automatic pistol. Officers also recovered from the vehicle 28 grams of methamphetamine and a variety of other drugs, as well as a digital scale and plastic baggies.
Because Walz has prior felony convictions, he is prohibited from lawfully possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the FBI, the U.S. Postal Inspection Service, the Minnesota Department of Corrections, and the Minneapolis Police Department.
Assistant U.S. Attorneys Esther S. Mignanelli and Joseph S. Teirab tried the case.
Former Tennessee State Senator and Co-Conspirator Sentenced for Campaign Finance SchemeRead the Press Release
NASHVILLE – Former Tennessee State Senator and practicing attorney Brian Kelsey was sentenced today to one year and nine months in prison, followed by three years of supervised release, for violating campaign finance laws and conspiring to defraud the Federal Election Commission (FEC) as part of a scheme to benefit his 2016 campaign for U.S. Congress.
According to court documents, Kelsey, 45, of Alexandria, Virginia, secretly and unlawfully funneled money from multiple sources, including his own Tennessee State Senate campaign committee, to his federal campaign committee. To carry out the scheme, Kelsey conspired with others, including Joshua Smith, who owned a members-only social club in Nashville, of which Kelsey was a member, and controlled a Tennessee political action committee affiliated with the club. Kelsey, Smith, and others caused a national political organization to make illegal and excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy, which caused false reports of contributions and expenditures to be filed with the FEC.
“Brian Kelsey intentionally violated federal campaign finance laws and his oath as a state senator in order to deny Tennessee voters their right to make informed decisions about his candidacy for Congress,” said United States Attorney Henry C. Leventis for the Middle District of Tennessee. “The court’s sentence today reflects the seriousness of his crimes and is a strong reminder of our commitment to root out public corruption and ensure the integrity of federal elections.”
“The defendants attempted to hide from voters how Kelsey raised and spent campaign money,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The integrity of our elections is essential to democracy, and voters should know how candidates raise and spend campaign dollars. The Department will continue to work alongside our law enforcement partners to uncover and prosecute campaign finance schemes designed to evade disclosure, and to ensure that violations of these laws carry a high cost.”
Kelsey and his co-conspirators orchestrated the concealed movement of $91,000 – $66,000 of which came from Kelsey’s State Senate campaign committee, and $25,000 of which came from a nonprofit corporation that publicly advocated on legal justice issues – to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election. Kelsey and his co-conspirators also caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures.
“The sentence handed down today makes it clear that no one is above the law,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI diligently investigates campaign finance fraud to ensure that U.S. elections are free from unfair influence, and anyone caught attempting to scheme their way into office will be held accountable.”
Joshua Smith was also sentenced today to five years of probation, a $250 fine, and 720 hours of community service for aiding and abetting the solicitation, receipt, direction, transfer, and spending of soft money in connection with a federal election.
The FBI Memphis Field Office investigated the case.
Assistant U.S. Attorney Amanda Klopf for the Middle District of Tennessee, Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney David Pritchard for the Western District of Tennessee prosecuted the case.
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Essex County Mother and Son Admit Roles in Scheme to Harbor Non-U.S. Citizens Through Marriage FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman and her son admitted conspiring to commit marriage fraud, U.S. Attorney Philip R. Sellinger announced today.
Andrea Torres, 56, of Newark, pleaded guilty on Aug. 10, 2023, before U.S. District Judge Esther Salas in Newark federal court to a two-count superseding indictment charging her and others with conspiracy to harbor non-U.S. citizens by orchestrating fraudulent marriages between the non-citizens and U.S. citizens. Her son, Philip Torres, 27, also of Newark, pleaded guilty to Count Two of the superseding indictment.
According to documents filed in this case and statements made in court:
From September 2016 through March 2021, Andrea Torres and her sister, Regina Johnson, arranged and facilitated sham marriages for non-U.S. citizens who wished to remain in the United States despite the lack of legal status or proper documentation. Andrea Torres and Johnson recruited U.S. citizen potential spouses and paid them a fee in exchange for those U.S. citizens entering into sham marriages with Andrea Torres’ and Johnson’s non-citizen clients.
From March 2021 through June 2021, Andrea Torres’ son, Philip, also participated in the scheme by, among other things, officiating some of the sham marriages. Andrea Torres and Johnson arranged for the “couples” to obtain fraudulent marriage licenses and even arranged and charged their clients for wedding ceremonies and after parties that were staged to make the sham marriages appear legitimate. Andrea Torres and Johnson further advised their clients to open joint bank accounts and to meet frequently with their U.S. spouses. Clients were also advised to take photographs in a variety of locations and in different clothing to memorialize the relationship and to give the appearance of cohabitation, even though none of the clients ever resided or intended to reside with their U.S. spouses. Andrea Torres and Johnson then helped their clients complete immigration forms to obtain permanent residency on the basis of the materially false misrepresentations. Johnson previously pleaded guilty to the charge in Count One of the superseding indictment.
Each count of conspiracy to which Andrea Torres and Philip Torres pleaded guilty carries a maximum penalty of 10 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss resulting from the offense, whichever is greatest. Sentencing for both is scheduled for Dec. 14, 2023.
U.S. Attorney Sellinger credited special agents and members of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to the guilty pleas. He also thanked U.S. Citizenship and Immigrations Services for its assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek of the National Security Unit and Assistant U.S. Attorney Blake A. Coppotelli of the Economic Crimes Unit in Newark.
torres.sindictment.pdfDrug Trafficker Sentenced to 15 Years in Prison for Distributing Methamphetamine and FentanylRead the Press Release
NEWS RELEASE SUMMARY – August 11, 2023
SAN DIEGO –Danny Lamar Miller-Kidd was sentenced in federal court to 15 years in prison for his leadership role in a Baja California-based drug trafficking organization that imported and distributed hundreds of pounds of methamphetamine, cocaine, fentanyl, and heroin to various sub-distributors throughout the United States, including California, Arizona, Oregon, Nevada, Wyoming, Colorado, Utah, Illinois, and Tennessee.
Miller pleaded guilty in December 2022 to conspiracy to distribute controlled substances and possession of methamphetamine with intent to distribute. As part of his plea agreement, Miller admitted that he worked as a multi-kilogram distributor of controlled substances for a Baja California-based drug trafficking organization. Specifically, he worked with his co-conspirators to import multi-kilogram quantities of methamphetamine, cocaine, fentanyl and heroin from Mexico intended for distribution throughout the United States.
During the wiretap investigation, agents identified Miller as a leader of a drug distribution cell who was responsible for distributing controlled substances to various sub-distributors in Arizona, Utah, Illinois, Colorado and other states. Miller was acting in furtherance of the conspiracy when he was stopped by law enforcement in the Southern District of California as he was transporting more than 30 pounds of pure methamphetamine, 5,000 fentanyl pills, and multiple firearms inside his vehicle in September 2021. Wire intercepts revealed that Miller obtained his drugs from Mexico that were secreted in buckets of construction material. Miller was also known to possess assault rifles, including an AR-15 with a silencer, “ghost guns,” and other weapons throughout the investigation.
“Every defendant we convict of drug-related crimes is one less cog in the massive machine that delivers poison to our streets,” said Acting U.S. Attorney Andrew Haden. “We will continue to fight relentlessly to protect our communities from deadly drugs like fentanyl.”
“Here’s another example of how DEA and our partners continue to aggressively target drug trafficking organizations that are importing and distributing drugs into our country,” said DEA Special Agent in Charge Shelly Howe.
“IRS special agents will work tirelessly with our law enforcement partners and the U.S. Attorney’s Office to dismantle drug trafficking organizations by bringing their leaders to justice,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation Los Angeles Field Office. “By following and eliminating the trail of illicit proceeds fueling the drug trade, IRS Criminal Investigation combats the flow of illegal guns and drugs that are killing Americans and destroying our communities. Mr. Miller’s sentencing should send a clear message of our resolve.”
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (“OCDETF”), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations using an intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DEFENDANTS Case Number 22cr1143-GPC
- REDACTED Age: 42 Fugitive
- REDACTED Age: 34 Fugitive
- Danny Lamar Miller-Kidd Age: 51 180 months’ custody
- Angela Diane Guerrero Age: 39 70 months’ custody
- Elizabeth Allison Edelman Age: 41 156 months’ custody
- Erik Valenzuela Age: 44 57 months’ custody
- Ramiro Aguilar Age: 41 108 months’ custody
- Amber Mae Yaeger Age: 40 Pending sentencing
- Andrew Mauricio Martinez Age: 21 Pending sentencing
- REDACTED Age: 46 Fugitive
- Nilesh Prasad Maharaj Age: 44 Fugitive
- Nofoaiga Mauu Age: 42 Pending trial
- Yendi Cecilia Rosas Age: 22 18 months’ custody
- Arturo Valenzuela-Preciado Age: 60 37 months’ custody
- Montserrat Lopez-Barron Age: 23 Pending trial
- Maria Conchita Alonso-Lopez Age: 27 Awaiting sentencing
- Juan Manuel Godinez-Gutierrez Age: 42 Fugitive
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Sections 841(a)(1) and 846
Possession of Controlled Substances with Intent to Distribute – Title 21, U.S.C., Section 841(a)(1)
Importation of Controlled Substances – Title 21, U.S.C., Sections 952 and 960
Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., Sections 1956(a)(1) and (h)
Criminal Forfeiture – Title 18, U.S.C., Section 982
Maximum penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years’ imprisonment, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and 3 years of supervised release.
AGENCY
Drug Enforcement Administration
Bureau of Land Management
Internal Revenue Service
Customs and Border Protection
Homeland Security Investigations
United States Border Patrol
United States Postal Inspection Service
San Diego Sheriff’s Department
Chula Vista Police Department
Oceanside Police Department
California Highway Patrol
Las Vegas Metropolitan Police Department
San Diego County District Attorney’s Office
*Allegations contained in an Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Driver in Large South Texas Human Smuggling Case Sentenced in Del Rio to 35 Years in Federal PrisonRead the Press Release
DEL RIO, Texas – An Ohio man was sentenced in a federal court in Del Rio Thursday to 420 months in prison for illegal alien transportation resulting in death.
According to court documents, Sebastian Tovar, 27, of Toledo, was driving a Dodge Ram near Del Rio on March 15, 2021, when a Texas Department of Public Safety (DPS) trooper attempted to stop the vehicle. Tovar tried to evade law enforcement but crashed into oncoming traffic. Eight undocumented noncitizen passengers in Tovar’s truck died in the crash, while one more was seriously injured. Additionally, two U.S. citizens were seriously injured in the head-on collision when Tovar struck their vehicle.
Following the crash, U.S. Border Patrol (USBP) agents encountered a Ford F-150 stopped in traffic near the crash site. The agents directed the driver of the Ford, to turn around and subsequently all its occupants fled on foot into nearby brush. USBP agents were able to locate 12 undocumented noncitizens who bolted from the Ford. After interviewing two of the undocumented noncitizens, USBP agents determined that the occupants of the Dodge and Ford were part of a human smuggling operation that was illegally transporting 20 undocumented noncitizens in the U.S.
Codefendant Ruben Junior Rodriguez-Jaimes, 20, of Bastrop was sentenced last week to 180 months in prison. Rodriguez-Jaimes was arrested on April 7, 2021, in the brush near Eagle Pass, when he was acting as the foot guide for four undocumented noncitizens. Since December 2020, Rodriguez-Jaimes had successfully smuggled 38 migrants into the U.S.
In addition to their imprisonment, Tovar and Rodriguez-Jaimes were each ordered to pay a portion of restitution totaling the amount of $164,701.80.
“The defendants in this case displayed a complete disregard for human life, not only of the migrants they were smuggling, but also of the innocent civilians on the road the day of this incident,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This is but one example of the danger these human smuggling organizations pose to our communities and especially to the migrants they smuggle. We are grateful for the tremendous effort and cooperation of our law enforcement partners at the federal, state and local levels and for their diligence in working to identify all of those whose conduct led to this tragedy.”
“These sentences underscore Homeland Security Investigations’ relentless efforts to identify transnational criminal organizations, which make a profit from smuggling migrants into the United States with total disregard for people who may end up paying the ultimate price,” said Special Agent in Charge Craig Larrabee for the HSI San Antonio Division. “HSI is committed to ensuring that those who prey on the innocent face justice.”
Five additional defendants pleaded guilty earlier this year to one count of illegal alien transportation resulting in death: Lauren Michelle Malmquist, aka “Mama” and “Lala,” 34, of Cedar Park; Nicolas Mondragon-Gonzalez, aka “Chayo” and “Flaco,” 35, of Luvianos, Mexico; Veronica Torres-Mendez, 36, of San Antonio; Jennifer Oralia Davis, aka “Paypa,” 41, of San Antonio; and Eduardo Rivera Benitez, aka “Lalo” and “Casper,” 25, of Bastrop. They each face a maximum penalty of life in prison.
The remaining three defendants pleaded guilty to one count of conspiracy to transport aliens: Marco Antonio Hernandez, aka “Temo,” 21, of Paige; Jose Eli Rodriguez, 22, of Austin; and Rogelio Manuel Luna, 34, of Austin. They each face a maximum penalty of 10 years in prison.
HSI, USBP and DPS investigated the case with valuable assistance from the Travis County Sheriff’s Office.
Assistant U.S. Attorney Joshua Banister prosecuted the case.
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District Man Pleads Guilty to Assault with Intent to KillRead the Press Release
WASHINGTON – Jose Avelino Felipe, 45, pleaded guilty to stabbing his female roommate in 2021, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Avelino Felipe pleaded guilty in the Superior Court of the District of Columbia to one count of assault with intent to kill. Superior Court Judge Michael O’Keefe scheduled sentencing for October 22, 2023.
According to the government’s evidence, on December 4, 2021, the defendant and his wife were living in the same apartment as the victim and her husband. That evening, the defendant and the victim’s husband got into a physical altercation in the home. Both men left the home after the altercation. Shortly thereafter, the defendant returned to the home, where the victim remained. The defendant came to her bedroom and asked whether she would call the police. She stated she would not. Nevertheless, the defendant then stabbed the victim twice with a knife, once in the chest, and once in her left shoulder. The defendant fled the apartment before police arrived.
Both the victim and her husband required emergency surgery for their injuries. The victim continues to recover from her injuries.
The Metropolitan Police Department Capitol Area Regional Fugitive Task Force apprehended the defendant on May 23, 2023.
In announcing the plea, U.S. Attorney Graves and Chief Smith commended the work of the Metropolitan Police Department, which investigated the case. He also expressed appreciation for the work of Assistant U.S. Attorney Matthew Covert who investigated and prosecuted the case.
Columbus Resident Charged with Forcibly Assaulting Two Federal OfficersRead the Press Release
COLUMBUS, Ga. – A federal criminal complaint charging a Columbus resident with forcibly assaulting two federal officers as they attempted to take him into custody last week was unsealed today.
Christopher Upshaw, 24, had his initial appearance before U.S. Magistrate Court Judge Stephen Hyles on Aug. 10, and was ordered detained by the Court. Upshaw is charged by criminal complaint with forcibly assaulting, resisting or opposing a federal officer. If convicted, Upshaw faces a maximum 20 years in prison.
According to court proceedings and the criminal complaint, Upshaw was under investigation for alleged drug distribution. On July 5, a federal search warrant was executed on a suspicious package destined for an address in Columbus; agents found 12 vacuum sealed bags of marijuana from Northern California. On July 31, a suspicious package originating from Northern California and addressed to the same location was identified. As part of the investigation, agents observed the suspicious package received and then placed in a Dodge Challenger registered to Upshaw. When deputies attempted to pull the vehicle over, allegedly driven by Upshaw, a high-speed chase ensued, with the driver of the Challenger traveling recklessly through residential neighborhoods and performing illegal and evasive lane changes in heavy traffic. The vehicle also traveled northbound in a southbound lane. The pursuit was terminated by law enforcement due to concerns about public safety, and the driver of the vehicle got away.
On Aug. 4, another suspicious package from Northern California addressed for a residence allegedly associated with Upshaw was identified. Law enforcement, attempting to arrest Upshaw on outstanding arrest warrants for assault and battery, felony malicious wounding and resisting arrest, conducted surveillance on the location that day. At 3:30 p.m., the suspicious parcel was delivered. Approximately 30 minutes later, Upshaw allegedly arrived in his Dodge Challenger, picked up the package, placed it inside his car and got back in the driver’s seat. At this time, 15 law enforcement officers wearing agency-issued body armor with visible insignia approached Upshaw to arrest him on outstanding warrants. Upshaw allegedly began forcibly operating his vehicle to resist the arrest, despite officers’ demands to stop and exit the car. One FBI Task Force Officer attempted to open the driver’s side door and one FBI Agent tried to open the passenger’s side door. Upshaw allegedly accelerated causing his car to strike the FBI Task Force Officer. Simultaneously, because of the vehicle’s acceleration, the FBI Agent on the passenger side was unable to disengage from the door handle and was pushed into a nearby vehicle causing bodily harm. Law enforcement continued chasing Upshaw, who eventually abandoned the car and fled on foot. Upshaw escaped and was captured on Aug. 9.
The case was investigated by FBI, DEA, the U.S. Postal Inspection Service, the Muscogee County Sheriff’s Office and the Coweta County Sheriff’s Office.
Assistant U.S. Attorney Christopher Williams is prosecuting the case.
A complaint is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
City of Gary Receives $1 Million in DOJ FundingRead the Press Release
HAMMOND – United States Attorney Clifford D. Johnson and Gary Police Chief Anthony Titus announce that the City of Gary have been awarded $1 Million Dollars in Byrne Discretionary Community Project Funding.
The City of Gary received notice of this funding late August 10, 2023, from the Department of Justice, Office of Justice Programs.
The funding will be utilized for permanent mounted LPR cameras, stationery video surveillance cameras & associated reoccurring costs. This technology and equipment will continue to be a driving force and deterrent within the city community. The benefits of having this technology and equipment will build on officer safety, engaging the officers to be proactive, developing the situation before occurrence, focusing on high crime targeted areas and connecting with the residents will make them feel safer knowing the technology is there and with assistance from more police engagement.
United States Attorney Clifford D. Johnson said, “A key component to increasing public safety in local communities is having the funding to acquire and deploy available technology. The Department of Justice, through its grant programs, is committed to assisting local governments, as shown by this 1 million dollar grant to the City Of Gary, in funding these modernization efforts. My office will continue to work with the Gary Police Department to increase safety for City residents and visitors.”
“It’s not the dollar amount of the grant as much as it is the relationship with our Federal partners that I’m pleased about today. The citizens of Gary are better served when all law enforcement entities come together with a common goal,” said Gary Police Chief Anthony Titus. “This $1 million dollar grant will help the Gary Police Department acquire technology that will be used to serve the citizens of Gary. It will enhance our already robust LPR and mobile video camera systems. A heartfelt thanks to the Department of Justice, and everyone involved in helping the City of Gary secure this funding.”
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Canadian Truck Driver Arrested with Almost 400 Kilograms of Cocaine, Charged with Drug ConspiracyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Ahmed El Kady, 37, of Hamilton, Ontario, Canada, was arrested and charged by criminal complaint with possession with intent to distribute five kilograms or more of cocaine, and conspiracy to possess with the intent to distribute, and to distribute, five kilograms or more of cocaine. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000.
Assistant U.S. Attorney Meghan E. Leydecker, who is handling the case, stated that according to the complaint, on August 7, 2023, El Kady made entry into the United States at the Ambassador Bridge Port of Entry in Detroit, Michigan, driving a commercial truck (Subject Vehicle) without a commercial trailer attached. El Kady advised CBP Officers that he was picking up a trailer locally in Detroit. Investigators surveilled El Kady and the Subject Vehicle to the TA Travel Center in Dexter, Michigan, where, over the next two days, he appeared to make some sort of exchange with the drivers of two other commercial trucks. Investigators continued to surveil El Kady as he traveled to Ohio before returning to Dexter, Michigan and making another exchange with the driver of a third commercial truck. El Kady then traveled to Buffalo, NY, arriving on evening of August 9, 2023, and spending the night at local truck stop.
On August 10, 2023, in the early afternoon, El Kady’s wife Maja Tambur arrived at the truck stop. El Kady and Tambur got into Tambur’s vehicle, traveling to Niagara Falls, where they made frequent stops throughout the area and were observed driving evasively in a manner consistent with individuals conducting counter surveillance. After their attempts to lose investigators from their surveillance, El Kady and Tambur attempted to return to the truck stop to the Subject Vehicle. A federal search warrant was executed on the Subject Vehicle, during which approximately 386 kilograms of suspected cocaine were seized, and El Kady was taken into custody.
El Kady made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on August 14, 2023, at 11 a.m.
The complaint is the result of a joint investigation by Homeland Security Investigations, under the direction of Special Agent-in Charge Matthew Scarpino, the Royal Canadian Mounted Police, and Canada Border Services Agency. Additional assistance was provided by Customs and Border Protection, CBP Air and Marine Unit, U.S. Border Patrol, the Erie County Sheriff’s Office, the Buffalo Police Department, the North Tonawanda Police Department, the Cheektowaga Police Department, the Ontario Provincial Police, Peel Police, and Toronto Police Services.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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California man pleads guilty to sexually exploiting minor, possessing child pornography after traveling to Ohio to engage in sex acts with a 14-year-oldRead the Press Release
COLUMBUS, Ohio – A California man pleaded guilty in U.S. District Court in Columbus today to sexually exploiting a minor and possessing child pornography.
Kameron E. Tolbert, 28, of Suisin City, California, admitted to traveling from California to Ohio to engage in sex acts with a 14-year-old female he met online.
According to court documents, on Aug. 22, 2022, law enforcement was dispatched to a home in Jackson, Ohio. Tolbert had jumped through the minor victim’s bedroom window when he was discovered in the bedroom with the victim. He fled on foot and then by vehicle.
The next day, the principal at the victim’s local high school identified Tolbert’s vehicle in the school parking lot and notified a school resource officer who detained Tolbert at the school.
Tolbert had first met the victim online six months prior and began chatting with her via different social media applications, including Discord. He admitted to flying from Sacramento, California, to Columbus, Ohio, on Aug. 20, 2022, to meet the victim at her home in Jackson. Tolbert parked nearby and snuck into the victim’s home through her bedroom window on August 21 and August 22 to engage in sexual intercourse with her.
A forensic examination of Tolbert’s digital devices revealed more than 500 images and 1,100 videos depicting child sexual abuse of both prepubescent and pubescent minors. Images and videos of the 14-year-old minor victim engaged in sex acts with Tolbert were also recovered.
As part of the plea, the parties involved have recommended a sentence of 15 to 20 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati division; and Jackson County Sheriff Tedd Frazier announced the guilty plea entered today before Chief U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Emily Czerniejewski and Jennifer M. Rausch are representing the United States in this case.
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Bloomington Woman Sentenced to Nearly 5.5 Years in Federal Prison for $5.5 Million International COVID Fraud SchemeRead the Press Release
INDIANAPOLIS- Oluwatobi Seton, 28, of Bloomington, Indiana, has been sentenced to nearly 5.5 years in federal prison after pleading guilty to wire fraud, aggravated identity theft, and conspiracy to commit money laundering.
According to court documents, Seton conspired with partners in Nigeria to obtain unemployment and other benefits during the COVID-19 pandemic from state and federal governments by falsely applying for such benefits using the stolen identities of others. Seton and her co-conspirators obtained personal identifiable information of their victims, which they used to open GoBank accounts and obtain debit cards. The conspirators then submitted false and fraudulent employment applications to unemployment agencies throughout the United States in the victims’ names and had the stolen benefits monies deposited into their fraudulent GoBank accounts and onto debit cards. Seton then used fake driver’s licenses in the victims’ names to access the proceeds of the fraud scheme. At the time of her arrest, Seton had over 1,400 GoBank cards and ten driver’s licenses with different names in her possession.
In total, the conspiracy resulted in at least $5,475,459.00 in actual and attempted losses to state unemployment offices and other state and federal agencies: Seton kept a portion of the proceeds for herself and sent the remainder to her conspirators, including her business partners in Nigeria. Investigators seized over $550,000 in cash and GoBank accounts linked to the scheme during the investigation.
“This international criminal enterprise conspired to steal millions of dollars meant to help our citizens as we fought through the unprecedented pandemic,” said United States Attorney for the Southern District of Indiana, Zachary A. Myers. “Fraudsters like this defendant who sought to exploit the urgent need to provide pandemic relief must be held accountable. I commend the work of our partners at the FBI, Bloomington Police Department, and Monroe County Sheriff’s Office, along with our federal prosecutors, to identify criminals like this defendant and ensure that they pay the price for their crimes.”
“Profiting from programs meant to help those in need is a despicable and unacceptable crime in and of itself. But this defendant took it a step further and stole identities to perpetrate this fraud and caused those victims immeasurable time in an effort to clear their names,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI and our local law enforcement partners will continue to identify and aggressively pursue those who commit fraud and ensure they are held accountable for their actions.”
The Federal Bureau of Investigation, Bloomington Police Department, and Monroe County Sheriff’s Office investigated this case. The sentence was imposed by U.S. District Court Chief Judge, Tanya Walton Pratt. Judge Pratt also ordered that Seton be supervised by the U.S. Probation Office for 1 year following her release from federal prison and pay restitution in the amount of $4,309,027.00.
U.S. Attorney Myers thanked Assistant United States Attorney MaryAnn T. Mindrum, who prosecuted this case.
On May 17, 2021, the Attorney General established the COVID‑19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID‑19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
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Arvin, California, Man Sentenced for Facilitating a Drug CrimeRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that United States District Judge Karen E. Schreier has sentenced a Arvin, California, man convicted of Use of a Communication Facility in the Commission of a Drug Trafficking Crime. The sentencing took place on August 11, 2023.
Eduardo Acosta, 24, was sentenced to 37 months custody in federal prison, followed by one year of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Acosta was indicted for Use of a Communication Facility in the Commission of a Drug Trafficking Crime by a federal grand jury in June 2022. He pleaded guilty on May 26, 2023.
Acosta resides in California. His acquaintance, Victor Alfonso Leon-Pacheco, was in custody in Oklahoma. Acosta accepted payments for drug proceeds that were wired through money exchange services. This occurred multiple times between September 2021 and January 2022. Acosta also sent packages containing controlled substances to South Dakota at the direction of Leon-Pacheco. Acosta and Leon Pacheco utilized cell phones to communicate, which are also considered to be communication facilities.
This case was investigated by the United States Postal Inspection Service, the Unified Narcotics Enforcement Team, which is local drug task force comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Acosta will report to the Bureau of Prisons in September.
Appointment of a Special CounselRead the Press Release
Attorney General Merrick B. Garland announced today the appointment of U.S. Attorney David Weiss to serve as Special Counsel for the ongoing investigation and prosecutions referenced and described in United States v. Robert Hunter Biden, as well as for any other matters that arose or may arise from that investigation. Mr. Weiss was nominated by the former president in 2017 and confirmed by the U.S. Senate in 2018. In 2021, he was asked to remain as U.S. Attorney for the District of Delaware, where he led this ongoing investigation. On Tuesday, Aug. 8, Mr. Weiss requested to be appointed as Special Counsel, and today the Attorney General made that appointment.
“On Tuesday of this week, Mr. Weiss advised me that in his judgment, his investigation has reached a stage at which he should continue his work as a Special Counsel, and he asked to be so appointed,” said Attorney General Garland. “Upon considering his request, as well as the extraordinary circumstances relating to this matter, I have concluded it is in the public interest to appoint him as Special Counsel. This appointment confirms my commitment to provide Mr. Weiss all the resources he requests. It also reaffirms that Mr. Weiss has the authority he needs to conduct a thorough investigation and to continue to take the steps he deems appropriate independently, based only on the facts and the law.”
The Attorney General also said, “As Special Counsel, he will continue to have the authority and responsibility that he has exercised previously to oversee the investigation and decide where, when, and whether to file charges. The Special Counsel will not be subject to the day-to-day supervision of any official of the Department, but he must comply with the regulations, procedures, and policies of the Department … Today’s announcement affords the prosecutors, agents, and analysts working on this matter the ability to proceed with their work expeditiously, and to make decisions indisputably guided only by the facts and the law … I am confident that Mr. Weiss will carry out his responsibility in an even-handed and urgent matter, and in accordance with the highest traditions of this Department.”
Appointment Order of David WeissAlbert Lea Woman Sentenced to Prison for Embezzling over $200,000 in Public Housing Rent PaymentsRead the Press Release
MINNEAPOLIS – An Albert Lea woman has been sentenced to a year and one day in prison, three years of supervised release, and is required to pay $213,217 in restitution for stealing public housing rent payments, announced U.S. Attorney Andrew M. Luger.
According to court documents, between January 2010 and July 18, 2018, Marcie Marie Thumann, 45, worked as a bookkeeper for the Albert Lea Housing and Redevelopment Authority (HRA), a government program that received both federal and state funding to remedy the shortage of available low-incoming housing units. Thumann, who was responsible for recording and reconciling payments to the HRA, received tenants’ rent payments via cash, check, or money order. During her tenure as the HRA’s bookkeeper, Thumann routinely embezzled HRA rent payments for her own personal use and benefit. She did so by pocketing cash payments and altering the payee information on payments made by check and money order. Thumann then manipulated the HRA’s computer system to conceal the money she stole, avoid detection, and prolong her fraud scheme. In total, Thumann stole at least $213,217 from the Albert Lea HRA.
Thumann pleaded guilty on October 12, 2022, to one count of theft from a program receiving federal funds. She was sentenced on August 9, 2023, before Senior Judge David S. Doty in U.S. District Court.
This case is the result of an investigation conducted by the U.S. Department of Housing and Urban Development – Office of the Inspector General and the Albert Lea Police Department.
Assistant U.S. Attorney Jordan L. Sing prosecuted the case. Assistant U.S. Attorney Erin Secord and Paralegal Specialist Jessica Scott handled the seizure and forfeiture of assets.
Administrator of ‘Bulletproof’ Webhosting Domain Charged in Connection with Facilitation of NetWalker RansomwareRead the Press Release
An indictment was unsealed yesterday in Tampa, Florida, charging a Polish national with computer fraud conspiracy, wire fraud conspiracy, and international money laundering in connection with the provision of “bulletproof” webhosting services that facilitated the operation of ransomware attacks and the subsequent laundering of the illicit proceeds.
According to court documents, Artur Karol Grabowski, 36, operated a webhosting company named LolekHosted. Through LolekHosted, Grabowski provided “bulletproof” webhosting services, which is secure webhosting designed to facilitate malicious and criminal activities, including ransomware, brute-force attacks, and phishing. Grabowski allegedly facilitated the criminal activities of LolekHosted clients by allowing clients to register accounts using false information, not maintaining Internet Protocol (IP) address logs of client servers, frequently changing the IP addresses of client servers, ignoring abuse complaints made by third parties against clients, and notifying clients of legal inquiries received from law enforcement. Grabowski registered the domain “LolekHosted.net” in 2014, and advertised that its services were “bulletproof,” provided “100% privacy hosting,” and allowed clients to host “everything except child porn.”
The NetWalker ransomware was one of the ransomware variants facilitated by LolekHosted. The NetWalker ransomware was deployed on approximately 400 victim company networks, including municipalities, hospitals, law enforcement and emergency services, school districts, colleges, and universities, which resulted in the payment of more than 5,000 bitcoin in ransoms (currently valued at approximately $146 million). LolekHosted clients used its services to execute approximately 50 NetWalker ransomware attacks on victims located all over the world, including in the Middle District of Florida. Specifically, clients used the servers of LolekHosted as intermediaries when gaining unauthorized access to victim networks, and to store hacking tools and data stolen from victims.
On Aug. 8, U.S. authorities seized LolekHosted.net, the domain name LolekHosted used for nearly a decade. Visitors to LolekHosted.net will now find a seizure banner that notifies them that the domain name has been seized by federal authorities. The U.S. District Court for the Middle District of Florida issued the seizure warrant.
If convicted on all counts, Grabowski faces a maximum penalty of 45 years in prison. The indictment also notifies Grabowski that the United States is seeking an order of forfeiture in the amount of $21.5 million, the proceeds of the charged criminal conduct. Grabowski remains a fugitive.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
The FBI Tampa Field Office is investigating the case, with assistance from the IRS Criminal Investigation Cyber Crimes Unit.
Trial Attorney Sonia V. Jimenez of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Carlton C. Gammons and Suzanne Nebesky for the Middle District of Florida are prosecuting the case.
Substantial assistance was provided by the Justice Department’s Office of International Affairs and the FBI’s Legal Attaché Office in Warsaw, Poland. Polish authorities also provided substantial assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
10 August 2023
Wood County Man Sentenced for Unlawfully Obtaining Unemployment and COVID-19 BenefitsRead the Press Release
CHARLESTON, W.Va. – Daniel Satow, 33, of Davisville, was sentenced today to five years of federal probation and ordered to pay $21,238 in restitution for unlawfully obtaining unemployment benefits, including supplementary funds provided by the Federal Pandemic Unemployment Compensation Program (FPUC) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents and statements made in court, on December 20, 2020, Satow logged on to the WorkForce West Virginia website and applied for unemployment compensation. Satow admitted he was employed at the time and that he falsely claimed when he applied that he had not been gainfully employed since September 9, 2020, and that the coronavirus pandemic prevented him from working.
Satow’s fraudulent application was approved and he received a debit card loaded with unemployment compensation benefits through the mail at his Davisville residence on January 5, 2021. Satow admitted that he used the debit card to make purchases for himself while knowing he had obtained the benefits fraudulently.
Satow further admitted that he continued to access the WorkForce West Virginia website for 26 consecutive weeks and each time falsely certified that he remained entitled to unemployment compensation benefits. WorkForce West Virginia relied on Satow’s false answers and loaded additional benefits onto the debit card weekly. These benefits included supplementary funds provided by the FPUC program. Satow admitted that he continued to use the debit card to make personal purchases.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided for a temporary emergency increase in unemployment compensation benefits, referred to as the Federal Pandemic Unemployment Compensation Program (FPUC). Although these benefits are administered by the states, they are funded in part by the federal government.
United States Attorney Will Thompson made the announcement and commended the investigative work of the WorkForce West Virginia Integrity Section and the Litigation Financial Analyst with the U.S. Attorney’s Office.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Ryan Blackwell prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-56.
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West Virginia man arrested for threatening Pittsburgh federal juryRead the Press Release
WHEELING, WEST VIRGINIA – A Follansbee, West Virginia, man was arrested today on criminal charges related to his alleged obstruction and witness tampering in a federal trial.
Hardy Carroll Lloyd, age 45, was taken into custody early this morning without incident. According to the criminal complaint, Lloyd began commenting online about the federal hate crimes trial in Pittsburgh, Pennsylvania, of Robert Bowers, the Tree of Life Synagogue mass shooter. Lloyd, a self-proclaimed “reverend” of a white supremacy movement, made threatening social media posts, website comments, and emails towards the jury and witnesses during the trial. Lloyd also placed or had others place stickers in predominantly Jewish areas of Pittsburgh, directing people to the website containing his threats and antisemitic messages.
“Jury trials are a hallmark of the American justice system and attempts to intimidate witnesses or jurors will be met with a strong response,” said United States Attorney William Ihlenfeld. “The use of hateful threats in an effort to undermine a trial is especially troubling.”
"The safety and security of all citizens in our communities is a priority for the FBI," said FBI Pittsburgh Special Agent in Charge Mike Nordwall. "Threats of violence used to intimidate or influence a community or jury cannot and will not be tolerated. The FBI makes it a priority to investigate crimes based on religious bias. In this case, the Jewish community was specifically targeted by these threats. I want to thank the community for sharing information that helped lead to today's arrest."
Lloyd is charged with obstruction of the due administration of justice, transmitting threats in interstate and foreign commerce, and witness tampering. He faces up to 10 years in prison for the obstruction charge, up to five years for the threats charge, and up to 20 in prison for the tampering charge. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
First Assistant U.S. Attorney Randolph Bernard and Assistant U.S. Attorney Jarod Douglas are prosecuting the case on behalf of the government.
The Federal Bureau of Investigation is investigating.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
West Hartford Man Sentenced to 30 Months in Federal Prison for Gang-Related Fentanyl DistributionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ROBERTO DIAZ, also known as “Dragon Eyes,” 53, of West Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by five years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, this matter stems from an investigation into gang-related drug trafficking and firearm possession by members of Los Solidos. The investigation, which included court-authorized wiretaps, revealed that Luis Feliciano, also known as “Louminaty,” distributed fentanyl, heroin, cocaine, and crack to customers and other distributors in the Hartford area, including Diaz. Diaz sold the drug to his own customer base.
On June 8, 2022, a grand jury returned an indictment charging Diaz, Feliciano, and 14 others with various narcotics distribution and firearm possession offenses.
Diaz was arrested on June 9, 2022. At the time of his arrest, he possessed 63 wax sleeves of fentanyl.
On February 22, 2023, Diaz pleaded guilty to conspiracy to distribute and to possess with intent to distribute fentanyl. He is currently detained.
Feliciano pleaded guilty and awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Robert S. Ruff. through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Waterloo Man Sent to Federal Prison for Shooting at an Occupied HomeRead the Press Release
A man who discharged a gun at an occupied house was sentenced today to 46 months in federal prison.
Montrell Anderson, age 20, from Waterloo, Iowa, received the prison term after an April 3, 2023 guilty plea to possession of a firearm by a drug user and possession of a stolen firearm.
Information at the sentencing hearing showed that on April 24, 2022, Anderson twice shot a stolen gun into a neighboring occupied house, nearly hitting one of the residents. At the time, he was under the influence of marijuana. Five months later, in September 2022, officers found three more guns belonging to Anderson. Two of the firearms were stolen. Anderson’s urine tested positive for marijuana metabolites, opiates, and benzodiazepines.
Anderson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Anderson was sentenced to 46 months’ imprisonment and must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Anderson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and Special Assistant United States Attorney Devra Hake, and it was investigated by the Waterloo Police Department and Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2012.
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Warwick, ND, Man Charged with Sexual Abuse and Materials Involving Sexual ExploitationRead the Press Release
FARGO - United States Attorney Mac Schneider announced that a federal grand jury has indicted Jordain Jaden Smith, aka Jordain Thompson, age 23 of Warwick, ND, for Aggravated Sexual Abuse by Force, Sexual Abuse of an Incapacitated Victim, Possession of Materials Involving the Sexual Exploitation of Minors, and Sexual Abuse of a Minor.
Smith appeared for an initial appearance and arraignment today. Smith is charged with five counts alleging Smith sexually abused two minor females and possessed materials involving the sexual exploitation of one of the minors. The sexual abuse alleged in the Indictment occurred within the boundaries of the Spirit Lake Reservation. If convicted, the two highest charges carry a maximum sentence of life in prison.
Smith has entered not guilty plea to matters alleged in the Indictment and an initial trial date has been scheduled for October 3, 2023.
Grand jury indictments are allegations and are not evidence of guilt. The defendant is presumed innocent unless and until he is proven guilt beyond a reasonable doubt at trial.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorney’s Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), helps federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Federal Bureau of Investigation with assistance from: Bureau of Indian Affairs North Dakota Bureau of Criminal Investigation, Grand Forks Police Department, Internet Crimes Against Children Task Force and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Lori H. Conroy assigned to the case.
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Venezuelan Men Plead Guilty to High Seas 1400kg Cocaine ConspiracyRead the Press Release
NORFOLK, Va. – Two Venezuelan citizens pleaded guilty today and yesterday to conspiracy to distribute cocaine on board a vessel in international waters.
According to court documents, on May 16, 2023, Juan Milano, 50, and Carlos Marcano, 31, were found with two others by a U.S. Navy ship and its Naval and Coast Guard personnel on board a go-fast boat in international waters while in possession of over 1400 kilograms of cocaine. The go-fast vessel was without nationality, and none of its crew declared their nationality, the flag nationality of the vessel, or claimed to be its master.
Milano is schedule to be sentenced on December 14 and Marcano, who pleaded yesterday, is scheduled to be sentenced on December 13. They each face a mandatory minimum of 10 years in prison and a maximum of life imprisonment. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Milano and Marcano were prosecuted as part of a joint interagency partnership between the U.S Coast Guard, U.S. Navy, the Department of Justice including the Drug Enforcement Administration, the Department of Homeland Security, and select U.S. Attorney offices in the United States and its territories.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Derek W. Gordon, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C.; William P. Hicks II, Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region, made the announcement after U.S. District Senior Judge Raymond A. Jackson.
The Narcotics and Dangerous Drug Section of the Department of Justice assisted in this investigation. The Joint Interagency Task Force South (JIATF-S), a United States multiservice, multiagency task force, also assisted in this investigation.
Assistant U.S. Attorney Kevin M. Comstock is prosecuting the case.
Congress has declared drug trafficking on vessels in international waters a serious international problem universally condemned and one that presents a specific threat to the security and societal well-being of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-85.
U.S. Forest Service Wins Civil Case Supporting Forest Restoration Projects in the Fremont-Winema National ForestRead the Press Release
MEDFORD, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that an order granting summary judgment in favor of the U.S. Forest Service was entered in a civil case challenging the agency’s commercial thinning of timber conducted as part of forest restoration efforts in the Fremont-Winema National Forest.
In December 2021 and May 2022, after an environmental effects review and public outreach, the Forest Service approved three restoration projects covering more than 91,000 acres in the Fremont-Winema National Forest designed to reduce the risk of severe wildfire in dry forestlands and improve degraded forest health and habitats. To achieve the agency’s restoration goals, it proposed various activities in the three projects including, but not limited to, small tree thinning, prescribed burning, juniper cutting, meadow enhancement, stream restoration, and the commercial sale of select forest products.
As part of each of the three restoration projects, the Forest Service approved between 3,000 and 16,000 acres of commercial thinning. Commercial and non-commercial thinning are longstanding timber management tools the Forest Service uses to improve timber stand growth and reduce fire hazard through the removal of select trees in overly dense and deteriorated stands. The Fremont-Winema National Forest has recently suffered from major wildfires including the 400,000-acre Bootleg Fire in 2021.
On July 12, 2022, Oregon Wild and WildEarth Guardians, two non-profit corporations, brought suit challenging the Forest Service’s use of commercial thinning as part of the restoration projects, alleging violations of the Administrative Procedure Act (APA) and the National Environmental Policy Act (NEPA).
On August 4, 2023, U.S. District Court Judge Michael J. McShane issued a summary judgment order concluding that the Forest Service had not in fact violated APA or NEPA. The court found the Forest Service’s use of NEPA procedures to approve the projects was lawful and reasonably determined.
The U.S. Forest Service was represented in this matter by Sean E. Martin, Assistant United States Attorney for the District of Oregon.
Two Men Arrested After Another Pleads Guilty in $470,000 Kickback Scheme Involvintg Jersey City Condo ComplexRead the Press Release
NEWARK, N.J. – Two New Jersey men were charged, and another previously pleaded guilty, for participating in a kickback scheme to defraud the owner of a condominium complex in Jersey City of $470,000, U.S. Attorney Philip R. Sellinger announced today.
Ranaldo Bennett, 40, of Jersey City, and Jonathan Smith, 56, of Montclair, New Jersey, were each charged in a three-count complaint with conspiracy to commit wire fraud and money laundering. Smith was arrested earlier today and will have his initial appearance this afternoon before U.S. Magistrate Judge Edward S. Kiel in Newark federal court. Bennett was arrested earlier in the week and had his initial appearance before Judge Kiel on Aug. 7, 2023.
Nathaniel Obedos, 56, of Jersey City, pleaded guilty on July 6, 2023, before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with conspiracy to commit wire fraud.
According to the publicly filed documents and statements made in Court:
From November 2018 through October 2020, Obedos conspired with Bennett and Smith to engage in a kickback scheme to defraud the owner of the condominium complex. Bennett was the complex’s lead property manager and Smith was its superintendent. Bennett and Smith steered repair and maintenance work to Obedos and his company in exchange for kickbacks from Obedos. Bennett and Smith falsified invoices that grossly inflated the value of Obedos’s work. Relying on those fake invoices, the complex paid Obedos the inflated prices, and Obedos then used the excess money to pay Bennett and Smith kickbacks. In total, the complex paid Obedos and his company over $1 million for work that was actually valued at $500,000. Obedos used the overpayments to pay $460,000 in kickbacks to Bennett and over $10,700 in kickbacks to Smith.
The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years, and the money laundering charges each carry a maximum penalty of 10 years in prison. Each charge also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Obedos’ sentencing is scheduled for Nov. 9, 2023.
U.S. Attorney Philip R. Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the plea and arrests.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations against Bennett and Smith are merely accusations, and they are presumed innocent unless and until proven guilty.
obedos.information.pdf
bennetsmith.complaint.pdfTwo Florida Men Charged with Orchestrating $12 Million Advance-Fee SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging JOSEPH MALVASIO and GREGG MARCUS, a/k/a “Gregg Pierce,” with running a years-long advance-fee scheme through which they defrauded hundreds of victims of at least approximately $12 million. MALVASIO and MARCUS were arrested this morning will be presented later today in the Southern District of New York.
U.S. Attorney Damian Williams said: “As alleged, Joseph Malvasio and Gregg Marcus perpetrated an advance-fee scheme whose victims were defrauded into paying millions of dollars for loans they needed but never received. Instead of keeping their promises to the victims, Malvasio and Marcus allegedly used the victims’ money to fund their lavish lifestyles.”
FBI Acting Assistant Director in Charge Christie M. Curtis said: "The defendants are alleged to have operated a fraudulent loan scheme where they collected fees from victims, however, had no intention of providing such loans. The fees were then used to fund luxury personal expenses. Ensuring that financial fraudsters are held accountable in the criminal justice system remains a top priority of the FBI."
According to the allegations contained in the Indictment:[1]
From at least in or about March 2017 through at least in or about August 2023, JOSEPH MALVASIO and GREGG MARCUS operated an advance-fee scheme that defrauded hundreds of victims of at least approximately $12 million. MALVASIO and MARCUS operated this fraudulent scheme through their ownership and operation of a business called Global Capital Partners Fund LLC (“GCPF”). MALVASIO and MARCUS falsely represented that GCPF was a legitimate business that would provide loans to individuals who were interested in funding for private commercial projects. Instead, MALVASIO and MARCUS defrauded victims, collecting thousands of dollars in fees from each victim without intending to issue a loan.
MALVASIO and MARCUS typically collected several fees from each victim, including a “letter of intent” fee, a “commitment” fee, and an “appraisal” fee. Each fee ranged from a few thousand dollars to tens of thousands of dollars. Once MALVASIO and MARCUS collected these fees, they informed each victim that he or she would not receive a loan and then refused to refund any of the fees each victim had paid.
Once MALVASIO and MARCUS received money from victims, they transferred the funds to their personal accounts and used them to make payments in the tens of thousands of dollars to Porsche, BMW, and Modern Yachts LLC, among other dealers of luxury goods. MALVASIO and MARCUS also used victim funds to make payments in the hundreds of thousands of dollars for personal credit card expenses.
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MALVASIO, 65, of Fort Lauderdale, Florida, and Bridgehampton, New York, and MARCUS, 57, of Bay Harbor Islands, Florida, are each charged with one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jackie Delligatti is in charge of the prosecution.
The charges contained 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. Malvasio and Marcus IndictmentTwo California Residents Found Guilty of Conspiring to Launder Drug Kingpin’s CashRead the Press Release
DETROIT – A federal jury in Detroit found two California residents guilty yesterday of conspiring to launder money, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge of Drug Enforcement Administration, and Charles E. Miller, Special Agent in Charge of the Internal Revenue Service, Detroit Field Divisions.
Convicted were Teeauna White, 37, and Robin Herndon, 43. The four-week trial was conducted before United States District Judge Terrence Berg.
White and Herndon, both of California, participated in a money laundering conspiracy that was led by convicted drug trafficker Maurice McCoy. McCoy was sentenced in March 2023 to 22 years after pleading guilty to drug and money laundering conspiracies.
Evidence presented during the trial established that McCoy kept distribution hubs in multiple cities across the U.S., including Novi, Michigan where the organization stored more than 30 kilograms of fentanyl and over half a million dollars that the DEA seized. At the time it was the largest fentanyl seizure in Michigan and one of the largest in the U.S. The seizure was the result of agents’ creative investigative work after they traced a UPC code off a Sony PlayStation box that was used to deliver heroin to a drug customer. That UPC code led to the Novi condominium where the PlayStation was active. Agents identified couriers who crisscrossed the U.S. delivering kilograms, transporting bulk currency, or laundering money, leading to multiple arrests and additional seizures in Indianapolis, Indiana, and Baltimore, Maryland where the organization also operated. All identified couriers and large-scale drug customers who were indicted pleaded guilty.
The evidence further established that White, who lived with McCoy, lived lavishly off the drug conspiracy’s proceeds, purchasing a Bentley and Mercedes, expensive jewelry, and a half a million-dollar home in the greater Los Angeles area. Herndon assisted McCoy and White by opening multiple bank accounts through which money from the drug conspiracy was used to purchase McCoy and White’s home.
“I salute the innovative investigative work of our federal law enforcement partners at the DEA and IRS that unraveled this drug conspiracy and helped tracked down all of the individuals who profited from the conspiracy,” stated U.S. Attorney Dawn Ison. “We will not only seek to hold those accountable who traffic in drugs, but also those who help them hide or launder the illicit proceeds of their crimes.”
Today’s announcement should serve as a clear warning to anyone who would use the cover of legitimate business to conceal proceeds derived from narcotics trafficking. Money launderers will be held to the same level of accountability as the drug traffickers they’re partnering with,” said Special Agent in Charge Orville.
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” said Charles Miller, Special Agent in Charge, IRS Criminal Investigation, Detroit Field Office. “Without these ill-gotten gains, the traffickers cannot finance their organizations. IRS-CI will continue to provide our financial expertise in narcotics investigations, as we work alongside the US Attorney’s Office and our law enforcement partners to bring criminals to justice.”
Sentencing is pending for both defendants.
The investigation of the case was conducted by the Organized Crime Drug Enforcement (OCDETF) Southeast Regional Strike Force. Assistant United States Attorneys Andrea Hutting, Craig Wininger, and Gjon Juncaj prosecuted the case for the United States.
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.
Tsayatoh Man Pleads Guilty to Federal Firearms ViolationRead 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 Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Rumaldo Peshlakai pled guilty to being a felon in possession of firearms and ammunition. Peshlakai, 43, of Tsayatoh, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
According to court documents, on Sept. 23, 2021, Peshlakai and Jane Doe were involved in a domestic dispute at a residence in Tsayatoh. Afterward, Peshlakai left the residence in Doe’s vehicle with their four children and multiple firearms and ammunition, driving into a wooded area near the residence. Peshlakai stated if any officers tried to stop him, he would shoot. An Amber Alert was issued for the four children in New Mexico and Arizona.
Officers from the Navajo Police Department and the Federal Bureau of Investigation located the vehicle in the wooded area and identified footprints leading away from the vehicle. Inside the vehicle was an empty box of ammunition and a single round. Officers tracked the footprints for six miles to an abandoned housing area where it appeared another vehicle arrived and picked up Peshlakai and the four children. That evening, Peshlakai contacted NPD Dispatch and informed them the children were at a relative’s house. Peshlakai was not at the relative’s house and would not give his location but agreed to turn himself in to the FBI the next morning.
The children, who were unharmed, were recovered by law enforcement, and Peshlakai was arrested on Sept. 24. Law enforcement later traced Peshlakai’s steps over the six-mile walk and unearthed a gun case that Peshlakai had buried while evading police. It contained a rifle, two pistols, and ammunition. Additional investigation revealed that Peshlakai abandoned the vehicle and took the case, then buried and concealed the case while being pursued by law enforcement. In a later interview, he claimed not to know the location of any firearms and denied possessing them at all.
Peshlakai was previously convicted in 2001 of assault by striking, beating or wounding and assault resulting in serious bodily injury, and in 2006 for being a felon in possession of ammunition. As a previously convicted felon, Peshlakai cannot legally possess firearms or ammunition.
At sentencing, Peshlakai faces up to 10 years in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office and the Navajo Police Department investigated this case with assistance from the FBI Phoenix Field Office, United States Marshals Service, New Mexico State Police, Navajo Police Department, McKinley County Sheriff's Office and Bernalillo County Sheriff's Office. Assistant U.S. Attorneys Alexander F. Flores and Kimberly Bell are prosecuting the case.
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Thomson, Illinois Man Sentenced to 270 Months in Prison Related to Conspiracy to Distribute MethRead the Press Release
DAVENPORT, Iowa – A Thomson, Illinois man was sentenced on August 8, 2023 to more than 22 years in federal prison for conspiracy to distribute 50 grams or more of methamphetamine or 500 grams and more of a mixture and substance containing methamphetamine.
According to public court documents, Clifford Don Smith, 56, was identified by law enforcement as a distributor for large quantities of methamphetamine in and around the Clinton, Iowa area since 2021. In total, Smith was held responsible for 8.99 kilograms of ice methamphetamine.
After completing his term of imprisonment, Smith will be required to serve five years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the U.S. Drug Enforcement Administration, the Iowa Division of Narcotics Enforcement, and the Clinton Police Department.
Texas Men Sentenced to Federal Prison for Paducah ATM TheftRead the Press Release
Paducah, KY – Two Houston, Texas men were sentenced yesterday to federal prison for their roles in a theft from a Paducah ATM.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the Federal Bureau of Investigation, and Chief Brian Laird of the Paducah Police Department made the announcement.
According to court documents, Otis J. Gibson, 24, was sentenced to 38 months in prison, followed by 3 years of supervised release, for bank larceny and interstate transportation of stolen funds. Eric J. Rhodes, 25, was sentenced to 12 months and one day in prison, followed by 2 years of supervised release, for bank larceny and interstate transportation of stolen funds. On June 10, 2020, Gibson, Rhodes, and unnamed co-conspirators stole cash from a stand-alone ATM located on Highway 60 near the Kentucky Oaks Mall in Paducah. The group used a stolen truck, chain, and pry bars to break open the ATM. Over $150,000 was stolen from the machine. They then traveled across state lines with the stolen cash. There is no parole in the federal system.
Gibson was also indicted by a federal grand jury in Missouri for his role in a January 9, 2020, ATM theft in Saint Louis. That indictment was transferred to the Western District of Kentucky. He was also sentenced today to a concurrent prison sentence for bank larceny charged in the Missouri indictment.
Gibson and Rhodes were ordered to pay $158,127 in restitution for bank larceny in Paducah. Gibson was ordered to pay an additional $98,748 for bank larceny in Saint Louis.
The FBI and the Paducah Police Department investigated the case.
Assistant U.S. Attorney Raymond McGee, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Texas Man Who Supplied Virginia Drug Network Sentenced to 25 YearsRead the Press Release
ABINGDON, Va. – A Texas man, who a jury convicted in April of trafficking large quantities of high-purity methamphetamine from Mexico into Southwest Virginia, was sentenced today to 25 years in federal prison.
Alonso Cantu-Cantu, 46, of Houston, was the major source of supply for a drug conspiracy that distributed more than 33 kilograms of crystal methamphetamine and 6 kilograms of cocaine into Southwest and Central Virginia through a multi-jurisdictional drug trafficking organization.
In April, a jury convicted Cantu-Cantu of conspiracy to distribute and possession with the intent to distribute methamphetamine.
Evidence presented at trial showed that Cantu-Cantu received methamphetamine in 55-gallon drums that had been transported into the United States in water tankers directly from sources in Mexico. Cantu-Cantu then directed the drugs through distributors from Indiana, who ultimately distributed down the supply chain throughout the Western District of Virginia, from Harrisonburg to Bristol, Virginia. Many of these transactions were orchestrated through another major drug trafficker who was incarcerated in multiple Virginia prisons throughout the conspiracy.
In all, the estimated street value of the methamphetamine and cocaine distributed during the course of the conspiracy was more than $1.4 million. Over 33 kilograms of methamphetamine, 125.4 grams of heroin, 94 grams of cocaine, and 7 firearms were seized, and 26 defendants have now been convicted over the course of the six-year investigation, which started with the investigation of street level dealers in the Smyth County, Virginia, area.
United States Attorney Christopher R. Kavanaugh, Virginia Attorney General Jason Miyares, and Special Agent in Charge Jared Forget of the DEA’s Washington Division made the announcement today.
This investigation was led by the Drug Enforcement Administration-Washington Field Division’s Bristol Post of Duty with assistance from the Smyth County Virginia Sheriff’s Office. Numerous other agencies also provided assistance throughout the investigation including the Drug Enforcement Administration in Indianapolis, Indiana, and Birmingham, Alabama, the Washington County Virginia Sheriff’s Office, the Abingdon, Virginia Police Department, the Rockingham County Virginia RUSH Drug Task Force, the Rockingham County, Virginia Sheriff’s Office, the Harrisonburg, Virginia Police Department, the Bessemer, Alabama Police Department, the Virginia Department of Corrections, the Virginia Department of Corrections Probation and Parole Unit, and the Southwest Virginia Regional Jail Authority.
Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Lena L. Busscher prosecuted the case for the United States.
Tech Executive Admits Participating in $150 Million Fraud on QualcommRead the Press Release
NEWS RELEASE SUMMARY – August 10, 2023
SAN DIEGO – Sanjiv Taneja, the former CEO of a technology company sold to Qualcomm for over $150 million, pleaded guilty in federal court today for his role in a massive fraud.
Taneja of Cupertino, California, pleaded guilty to one count of money laundering related to a $1.5 million transaction involving proceeds of the fraud on Qualcomm. In his plea agreement, Taneja admitted that he and co-defendants Karim Arabi, Ali Akbar Shokouhi, and others schemed to hide Arabi’s involvement in Abreezio—the tech firm that they marketed to Qualcomm. Arabi was a Qualcomm employee throughout the entire marketing period, and hiding his involvement in the firm and the development of its patented technology allowed Abreezio’s principals to claim that the company was an “angel-funded” outside firm while disguising its true connections to Qualcomm. In that regard, Taneja admitted that he asked Arabi for performance numbers for Qualcomm’s existing technology to try to improve Abreezio’s marketing pitch, and that he even called Arabi by a different name in text messages to obscure Arabi’s involvement in Abreezio. According to court documents, Qualcomm agreed to pay roughly $180 million for Abreezio—$150 million of which was paid in cash in October 2015.
Taneja acknowledged that he never actually met the purported creator of Abreezio’s core technologies, who is Arabi’s family member and was never involved in the company’s technical or strategic decision-making as far as Taneja knew.
In his plea agreement, Taneja also admitted that Karim Arabi directed him to delete emails concerning the scheme once Qualcomm started investigating the Abreezio transaction, although Taneja was later able to recover the emails.
“Fraud and deceit undermine legitimate businesses and the marketplace, whether they victimize small businesses or multinational corporations and their shareholders,” said Acting U.S. Attorney Andrew R. Haden. “This office will seek justice against wrongdoers, big and small alike.”
“Crimes like the one supported by Mr. Taneja and his co-conspirators threaten the economy at every level,” said FBI San Diego Field Office Acting Special Agent in Charge Jamie Arnold. “The FBI is committed to working with its law enforcement partners to ensure that every criminal taking part in corporate fraud is investigated and arrested.”
“Mr. Taneja was part of an elaborate conspiracy to steal tens of millions of dollars from a major technology company and a complex scheme to launder the proceeds,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation Los Angeles field office. “IRS Criminal Investigation special agents are experts at following the money through complex transactions and international movements, and we are committed to continued collaboration with our law enforcement partners to identify and bring to justice those who attempt to defraud people, businesses or both.”
DEFENDANTS Case Number 22-CR-1152-BAS
Karim Arabi Age: 57 San Diego, CA
Sanjiv Taneja Age: 60 Cupertino, CA
Ali Akbar Shokouhi Age: 64 San Diego, CA
AGENCIES
Federal Bureau of Investigation
Internal Revenue Services, Criminal Investigation
United States Marshals Service
*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Smith Lake Man Pleads Guilty to 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 Federal Bureau of Investigation’s Albuquerque Field Office, announced that Josiah Alan Smith, 29, of Smith Lake and an enrolled member of the Navajo Nation, pled guilty in federal court to second degree murder. Smith will remain in custody pending sentencing which has not been scheduled.
According to court documents on May 17, 2021, Smith shot and killed the victim, identified as John Doe, at a residence near Church Rock, New Mexico, on the Navajo Nation. Smith, who had arrived at the residence earlier in the day, allegedly fired into a window from outside the home, striking the victim in the back and killing him.
The FBI, with the assistance of the McKinley County Sheriff's Office and Gallup Police Department, arrested Smith in Gamerco, New Mexico, on Aug. 21, 2021.
At sentencing, Smith faces up to life in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Department of Criminal Investigations and the McKinley County Sheriff's Office. Assistant United States Attorneys Matthew T. Nelson and Blake Nichols are prosecuting the case.
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Six Indicted for Multi-State Oxycodone ConspiracyRead the Press Release
BOSTON – Six individuals were indicted today by a federal grand jury in Boston for their alleged involvement in a drug trafficking organization that distributed oxycodone pills, obtained from a source in the Houston area, across Southeastern Massachusetts and beyond.
The following defendants were indicted on one count each of conspiracy to distribute controlled substances and to possess with intent to distribute oxycodone pills. They were previously arrested on July 12, 2023:
- John Campbell, a/k/a Jizz, 40, of Taunton;
- Kenneth Veiga, 33, of Abington;
- Michael Atwood, 36, of Carver;
- Austin Gonsalves, 36, of Fall River;
- Scott Lambert, 55, of Falmouth; and
- Christan Russell, a/k/a Christian Russell, a/k/a Bear, 32, of Tomball, Texas.
According to the charging documents, an investigation into Campbell began in April 2022 after law enforcement received information that he was allegedly distributing oxycodone pills. Intercepted communications allegedly revealed that Campbell distributed oxycodone pills to Atwood and Lambert, who then re-distributed the pills to others. On Feb. 24, 2023, law enforcement stopped Lambert in Bourne after he allegedly met with Campbell, and 73 oxycodone pills were found hidden in a Krazy Glue container inside the vehicle.
It is further alleged that, on multiple occasions, Russell obtained oxycodone pills from pharmacies in the Houston area before travelling to the Boston area and distributing the pills to Veiga, who then re-distributed them to Gonsalves. Specifically, flight records allegedly show that Russell travelled to Boston and met with Veiga in February, March and May 2023 to distribute the pills in various locations, including the Twin River Casino, in Lincoln, R.I. and a Brookline hotel.
The charge of conspiracy to distribute controlled substances and to possess with intent to distribute oxycodone pills provides for a sentence of up to 20 years in prison, up to a lifetime of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon on the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The indictment also includes a drug forfeiture allegation, aiming to seize the following items: a 2014 Mercedes-Benz CLS550; a 2017 BMW X6; over $998,000 in U.S. Currency; an Aero Precision Model X15 Pistol; a Kongsberg Norwegian M1914 Pistol; a Glock 22 .40 Caliber Pistol; and a Taurus .44 Caliber Revolver.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; Falmouth Police Chief Jeffrey A. Lourie; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Valuable assistance in the investigation was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; the United States Coast Guard Investigative Service; the Cape & Islands District Attorney’s Office; the Barnstable County Sheriff’s Office; and the Barnstable, Dennis, Bourne, Mashpee, Yarmouth and Sandwich Police Departments. Assistant U.S. Attorneys John T. Mulcahy of the Narcotics & Money Laundering Unit and Alexandra Amrhein of the Asset Recovery Unit are prosecuting the case.
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 details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Savage Life Gang Members Sentenced to Federal Prison on Racketeering ChargesRead the Press Release
DAVENPORT, Iowa – Two Davenport men were sentenced on Tuesday, August 8, 2023, in relation to a racketeering prosecution. Najawaun Marcus Quinn, 26, was sentenced to 408 months in federal prison for assault with a dangerous weapon in aid of racketeering, use and carry a firearm during and in relation to a crime of violence, and felon in possession of a firearm and ammunition. Dimetri Alexander Smith, 30, was sentenced to 400 months in federal prison for two counts of assault with a dangerous weapon in aid of racketeering and two counts of use and carry a firearm during and in relation to a crime of violence. In February 2023, both were found guilty of the charges following a 7-day jury trial.
According to public court documents and evidence presented at trial, in 2016 and 2017, as members of Savage Life Boys (SLB), a Davenport-based street gang, Quinn and Smith were involved in multiple shootings.
In October 2016, Quinn and other SLB members encountered a man with whom he had been feuding sitting in a parked car at his residence on North Division Street in Davenport. They parked a short distance away and Quinn approached the man on foot. Quinn then fired numerous rounds at the man while he sat in his car. The man sustained a gunshot wound.
In January 2017, Smith, and co-defendants Austin Ruiz and Olajuwan Culbreath were at the NorthPark Mall when they saw a rival gang member. Smith, Ruiz, and Culbreath went to their car, where they had firearms. Culbreath drove to the mall entrance where they expected the rival gang member to exit. When they saw the rival gang member, Smith and Ruiz chased him through the mall parking lot, shooting at him.
In February 2017, Quinn, Smith, and co-defendants Culbreath, and Darion Gardner, and other SLB members started an altercation at a concert at the Hotel Davenport due to perceived disrespect for their gang. During the altercation, Gardner shot and killed one male and injured another.
In April 2017, Smith and Ruiz were at Centennial Park in Davenport when they saw a male who recently robbed another SLB member’s dice game. Ruiz, armed with a firearm, got out of their vehicle to confront the male. The men struggled over the firearm, which discharged, striking the male in the foot. Smith then joined the altercation, choking the male to unconsciousness to assist them in their flight.
Quinn and Smith committed these acts with the intent to maintain or increase position in the gang.
Following their prison terms, both Quinn and Smith must each serve five years of supervised release. There is no parole in the federal system.
In April 2023, Ruiz was sentenced to 202 months in prison and Culbreath was sentenced to 152 months in prison. In December 2022, Gardner was sentenced to 450 months in prison.
United States Attorney Richard D. Westphal stated “We will continue to pursue and aggressively prosecute those individuals and groups of individuals that choose to commit violent crimes. This investigation, trial and hard work of our partners at the Davenport Police Department exemplifies our joint commitment to using every tool available to combat gun violence and protect the communities we serve.”
“We are proud of the hard work and dedication of our investigators and continued partnership with federal prosecutors to bring violent offenders to justice. Partnerships such as these are vital to keeping our community safe,” said Davenport Police Chief Jeffery E. Bladel.
The Davenport Police Department led this investigation, with assistance from the Peoria, Illinois Police Department.
Santo Domingo Woman Pleads Guilty to Assault on a Federal OfficerRead 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 Federal Bureau of Investigation’s Albuquerque Field Office, announced that Henryetta John pled guilty to assault on a federal officer. John, 30, of Santo Domingo, New Mexico, and a member of the Pueblo of Santo Domingo, will remain in custody until she can be released for substance-abuse treatment.
According to court documents, on Oct. 20, 2021, John was stopped on suspicion of DWI by a federal officer from the Bureau of Indian Affairs. When the officer tried to place John under arrest, she slipped the handcuffs and physically assaulted the officer, causing them to roll down a hillside. The officer sustained injuries as a result of the altercation.
At sentencing, John faces up to 20 years in prison.
The FBI Albuquerque Field Office investigated this case with assistance from the Bureau of Indian Affairs and the Sandoval County Sheriff’s Office. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case.
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Ringleader sent to prison in nationwide fraud scheme targeting elderly victimsRead the Press Release
HOUSTON – The leader in a conspiracy to commit mail fraud has been ordered to federal prison, announced U.S. Attorney Alamdar S. Hamdani.
MD Azad, 26, an Indian national who illegally resided in Houston, pleaded guilty Aug. 15, 2022, admitting he participated in a fraud ring from 2019-2020 which operated out of various cities including Houston.
U.S. District Judge Kenneth Hoyt has now ordered Azad to serve 188 months in federal prison. Azad, a citizen of India, is expected to face removal proceedings following the prison term. At the hearing, the court heard additional evidence that described Azad as the U.S.-based ringleader working with a call center in India. In handing down the sentence, the court noted the many letters and victim impact statements it had read showing the financial devastation to elderly and vulnerable victims throughout the United States because of this fraud scheme.
“The victims in this case were devastated, financially and otherwise,” said Hamdani. “This fraud ring repeatedly preyed on elderly and vulnerable people in the United States who spoke of threats of bodily harm if they did not comply with demands for more money. Our hope, and that of many of the victims, is deterrence so as to stop others who would think of doing similar harm in our community and beyond.”
The scheme targeted elderly victims throughout the United States and elsewhere.
The ring tricked and deceived victims using various ruses and instructed them to send money via wire through a money transmitter business such as Western Union or MoneyGram, by buying gift cards and providing to the fraudsters or by mailing cash to alias names via FedEx or UPS.
Part of the scheme involved fraudsters contacting victims by phone or via internet sites for computer technical support and directing victims to a particular phone number. Once victims contacted the fraudsters, they were told various stories such as they were communicating with an expert that needed remote access to their computer in order to provide technical support services. The fraudsters then gained access to victims’ personal data and bank and credit card information.
Victims typically paid a fee to conspirators for the fake technical support but were later told they were due a refund. Through paying for “technical support” or through the “refund” process, the ring gained access to the victim’s bank account(s) and credit cards and manipulated the accounts to make it appear the victim was paid too large a refund due to a typographical error. Victims were then instructed to reimburse the ring by various means.
Victims were sometimes re-victimized multiple times and threatened with bodily harm if they did not pay.
Indian citizen Anirudha Kalkote, 26, also pleaded guilty in relation to the conspiracy as did Sumit Kumar Singh, 26, Himanshu Kumar, 26, and MD Hasib, 27, all also Indian nationals who illegally resided in Houston. They are pending sentencing.
All five individuals will remain in custody.
The FBI, U.S. Postal Inspection Service and IRS Criminal Investigation conducted the investigation with assistance from Homeland Security Investigations, Fort Bend County Sheriff’s Office and other local law enforcement agencies throughout the United States including the Sheriff’s Office and Commonwealth’s Attorney’s Office of Augusta County, Virginia. Assistant U.S. Attorneys Belinda Beek and Quincy Ollison prosecuted the case.
The case is brought as a part of the Elder Justice Initiative. Its goal is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults.
In March 2020, the U.S. Department of Justice launched National Elder Fraud Hotline to help combat fraud against older Americans and provide services to victims. If you or someone you know is a victim of elder fraud, we encourage you to call the National Elder Fraud Hotline at 833–FRAUD–11 (833–372–8311).
The hotline is open Monday through Friday from 10 a.m. to 6 p.m. eastern time. Services are available for speakers of English, Spanish and other languages.
Rhode Island Man Sentenced to Three Years in Prison for Theft and Misuse of COVID-19 Pandemic AssistanceRead the Press Release
BOSTON – A Rhode Island man was sentenced today in federal court in Boston for his involvement in a fraudulent scheme to obtain and misuse COVID-19-related unemployment assistance.
Dquintz Alexander, 36, was sentenced by U.S. District Court Judge Angel Kelley to three years in prison and three years of supervised release. Alexander was also ordered to pay forfeiture of $318,281. In April 2023, Alexander pleaded guilty to one count of wire fraud conspiracy, five counts of wire fraud, and one count of aggravated identity theft.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors or gig economy workers).
From April to June 2020, Alexander conspired with his co-worker, Norman Higgs, to submit fraudulent PUA claims using stolen identifying information of other individuals. The PUA payments were directed into bank accounts controlled by Alexander and Higgs. In total, accounts controlled by Alexander and Higgs received over half a million dollars in fraudulent PUA payments. While the majority of the funds were frozen by banks or recovered through the efforts of law enforcement, Alexander and Higgs were able to use over $200,000 of the funds for their personal benefit, including to pay off credit card debt and to fund digital currency and online retail brokerage accounts. On August 2, 2023, Higgs was sentenced for his role in the scheme.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud made the announcement. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Rapid City Man Found Guilty of Failure to Register as a Sex OffenderRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that U.S. District Judge Karen E. Schreier has convicted Ryder White Hawk Sierra, age 33, of Rapid City, South Dakota, of one count of Failure to Register as a Sex Offender following a court trial in federal district court in Rapid City, South Dakota. The verdict was returned on August 9, 2023.
The charge carries a maximum penalty of 10 years in custody and/or a $250,000 fine, a minimum of five years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Sierra was indicted by a federal grand jury in March of 2023.
The charge related to Sierra failing to register and update his sex offender registration under the Sex Offender Registration and Notification Act between January and March of 2023.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Megan Poppen prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for October 25, 2023. The defendant was remanded to the custody of the U.S. Marshals Service.
Princeton Man Sentenced to 10 Years in Federal Prison for Methamphetamine DistributionRead the Press Release
Paducah, KY – A Princeton, Kentucky man was sentenced yesterday to 10 years in prison for methamphetamine distribution offenses.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Commissioner Phillip Burnett, Jr. of the Kentucky State Police made the announcement.
According to court documents, on separate dates in March, June, and August of 2021, in Caldwell County, Kentucky, Donald Ray Adams, 49, distributed 50 grams or more of methamphetamine. Further, on September 23, 2021, Adams possessed with the intent to distribute over 400 grams of methamphetamine. Adams was sentenced yesterday to 10 years in prison followed by a 5-year term of supervised release. There is no parole in the federal system.
This case was investigated by the DEA Paducah post of duty and the Kentucky State Police, with assistance from the Caldwell County Sheriff’s Office and the Pennyrile Narcotics Task Force.
Assistant U.S. Attorney Seth Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Plainfield Man Sentenced to over 3 Years in Federal Prison for $1.5 Million Identity Theft SchemeRead the Press Release
INDIANAPOLIS- Vimalkumar Trivedi, 41, of Plainfield, Indiana, has been sentenced to 46 months in federal prison after pleading guilty to the possession of false identity documents and operating an unlicensed money transfer business.
According to court documents, from April 2017 through April 1, 2021, Trivedi defrauded multiple victims, including some elderly individuals, into sending cash to various locations, including Indianapolis via FedEx. Trivedi and his co-conspirators in the U.S. and India masqueraded as federal law enforcement agents and told the victims that their Social Security numbers had been found in connection with criminal activity, often narcotics trafficking. The criminals stated that the victims would be arrested if they did not immediately withdraw large sums of cash and mail it to fictitious individuals.
Trivedi tracked the packages of money sent by fraud victims to the fictitious recipients and picked them up at multiple FedEx locations. In each instance, Trivedi used a false identification document in the name of the listed package recipient. In total, Trivedi possessed at least 53 false identification documents, each with his picture but containing different identifying information. He used these false identification documents to pick up at least 122 packages containing $901,124 in cash proceeds of the fraud. Trivedi kept $60,000 stolen from victims for his own use and forwarded the remainder to his associates.
Through the investigation, law enforcement agents have identified and confirmed approximately 17 victims, identified approximately 50 other suspected victims, and identified approximately $1.5 million in losses to the victims.
United States Attorney for the Southern District of Indiana, Zachary A. Myers, Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office; Welber Hickman, Special Agent in Charge of the Naval Criminal Investigative Service Norfolk Field Office, Rodney Hopkins, Postal Inspector in Charge of the U.S. Postal Inspection Service’s Detroit Division; and Gail S. Ennis, Inspector General of the Social Security Administration, OIG made the announcement.
“International fraud conspiracies steal from hard-working people using lies, manipulation, and fear,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “These vicious crimes often devastate families and individuals victimized by these heartless thieves. The sentence in this case demonstrates that fraudsters seeking a quick buck will pay a heavy price for their crimes. I commend the dedication of the FBI, NCIS, Postal Inspection Service, and Social Security Administration OIG, to hold these criminals accountable and seek justice for victims.”
“The sentence imposed on the defendant sends a very clear message to those who attempt to profit from fraud. You will be caught, and you will face time behind bars,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “Protecting the community from becoming victims of these types of schemes will always be a priority for the FBI and our partners.”
“Mr. Trivedi’s conspirators threatened and scared innocent victims into sending him large sums of money in a vile scheme for which he deserves to be held fully accountable,” said Special Agent in Charge Welber Hickman of the NCIS Norfolk Field Office. “This sentencing should serve as a warning that NCIS and our partners will expose and bring to justice those who seek to defraud our nation’s warfighters and their families.”
“Trivedi was part of an imposter scam that used scare tactics and identity theft to scam innocent victims out of hard-earned money. Today’s sentence shows that such behavior will not be tolerated,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank the United States Attorney’s Office and our law enforcement partners for their dedication and work on this case.”
The Federal Bureau of Investigation, Naval Criminal Investigative Service, United States Postal Inspection Service, and the Social Security Administration Office of Inspector General investigated this case. The sentence was imposed by U.S. District Court Chief Judge, Tanya Walton Pratt. Judge Pratt also ordered that Trivedi be supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorneys Bradley P. Shepard and Patrick A. Gibson, who prosecuted this case.
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