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Friday 23 June 2023
U.S. Attorney Announces Fentanyl Trafficking, Precursor Importation, and Money Laundering Charges Against Chinese Chemical Company and ExecutivesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Lisa O. Monaco, the Deputy Attorney General of the United States, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced today the unsealing of an Indictment charging the Chinese chemical company HUBEI AMARVEL BIOTECH CO., LTD., a/k/a “AmarvelBio,” (“AMARVEL BIOTECH”) as well as its executives and employees QINGZHOU WANG, a/k/a “Bruce” (“WANG”), YIYI CHEN, a/k/a “Chiron” (“CHEN”), and FNU LNU, a/k/a “Er Yang,” a/k/a “Anita” (“YANG”), with fentanyl trafficking, precursor chemical importation, and money laundering offenses. WANG and CHEN, both nationals of China, were expelled from Fiji on June 8, 2023, arrested by the DEA, and presented before U.S. Magistrate Judge Wes Reber Porter in Honolulu federal court on June 9, 2023. WANG and CHEN were ordered detained in Honolulu and will appear in Manhattan federal court following their arrival in the Southern District of New York. YANG, also a national of China, is at large. The case has been assigned to U.S. District Judge Paul G. Gardephe.
U.S. Attorney Damian Williams said: “The indictment unsealed today in the Southern District of New York is the next step in our fight against fentanyl. Today, we target the very beginning of the fentanyl supply chain: the Chinese manufacturers of the raw chemicals used to make fentanyl and its analogues. We’ve charged a Chinese precursor chemical company. And that’s not all. We’ve charged and arrested some of the individuals who work at the company. That includes a corporate executive and a marketing manager. They’re in American handcuffs. And they’re going to face justice in an American courtroom.”
Attorney General Merrick B. Garland said: “When I announced in April that the Justice Department had taken significant enforcement actions against the Sinaloa Cartel, I promised that the Justice Department would never forget the victims of the fentanyl epidemic. I also promised that we would never stop working to hold accountable those who bear responsibility for it. That includes not only going after the leaders of the Cartels, their drug and gun traffickers, their money launderers, security forces, and clandestine lab operators. It also includes stopping the Chinese chemical companies that are supplying the cartels with the building blocks they need to manufacture deadly fentanyl.”
Deputy Attorney General Lisa O. Monaco said: “Today’s announcement is a down payment on our pledge to use every tool in the government’s arsenal, in every corner of the globe, to protect American communities. The Justice Department will not rest or relent in investigating and prosecuting every link of the fentanyl supply chain, including the PRC companies and executives who produce and export vast quantities of the precursor chemicals the drug cartels need to peddle their poison. There can be no safe haven.”
DEA Administrator Anne Milgram said: “Today’s announcement is a considerable step forward in our unrelenting fight against fentanyl, targeting the threat where it starts. These companies and individuals are alleged to have knowingly supplied drug traffickers, in the United States and Mexico, with the ingredients and scientific know-how needed to make fentanyl – a drug that continues to devastate families and communities across the United States, killing Americans from all walks of life. The fentanyl supply chain begins in China, but tragically, it ends here. Targeting entire criminal drug networks, from the source of supply to the last mile of distribution, is critical to saving American lives. DEA will not stop until this crisis ends.”
According to the allegations contained in the Indictment and other court filings:[1]
AMARVEL BIOTECH is a chemical manufacturer based in the city of Wuhan in Hubei Province, China, that has exported vast quantities of the precursor chemicals used to manufacture fentanyl and its analogues. A synthetic opioid that is 50 times more potent than heroin, fentanyl is now the leading cause of death for Americans ages 18 to 49. Fentanyl analogues, similar in chemical makeup and effect to fentanyl, can be even more potent and lethal than fentanyl. Fentanyl and its analogues have devastated communities across the United States and are fueling the ongoing opioid epidemic, which killed at least 105,263 Americans between February 2022 and January 2023 alone.
AMARVEL BIOTECH has openly advertised online its shipment of fentanyl precursor chemicals to the United States and to Mexico, where drug cartels operate clandestine laboratories, synthesize finished fentanyl at scale, and distribute the deadly fentanyl into and throughout the United States. Through its website and a host of other storefront sites, AMARVEL BIOTECH has targeted precursor chemical customers in Mexico, including by advertising fentanyl precursors as a “Mexico hot sale”; guaranteeing “100% stealth shipping” abroad; and posting to its websites documentation of AMARVEL BIOTECH shipping chemicals to Culiacan, the home city of the Sinaloa Cartel, one of the dominant drug trafficking organizations in the Western Hemisphere and which is largely responsible for the massive influx of fentanyl into the United States in recent years.
AMARVEL BIOTECH has also endeavored to thwart law enforcement interdiction of its precursor chemical shipments. AMARVEL BIOTECH has advertised, for example, the company’s ability to use deceptive packaging — such as packaging indicating the contents are dog food, nuts, or motor oil — to ensure “safe” delivery to the United States and Mexico.
Over the past eight months, during the course of an undercover investigation by the DEA, AMARVEL BIOTECH and its principal executive, WANG, its marketing manager, CHEN, and its sales representative, YANG, shipped more than 200 kilograms from China to the United States of precursor chemicals used to make fentanyl and its analogues. AMARVEL BIOTECH, WANG, CHEN, and YANG shipped the precursors to the United States intending that the chemicals would be used to produce fentanyl and its analogues in New York, and they agreed to continue supplying multi-ton shipments of fentanyl precursors despite being told that Americans had died after consuming fentanyl made from the chemicals that the defendants had sold.
For example, on or about November 17, 2022, a DEA confidential source (“CS-1”) wrote to YANG using an encrypted messaging application, “You know I making fentanyl,” and “Is not safe.” YANG replied, “i know.” On or about December 1, 2022, YANG wrote to CS-1, promising that CS-1 would be “happy with our product” and noting that CS-1 would “be able to synthesize fentanyl.” In exchange for payment in cryptocurrency, AMARVEL BIOTECH thereafter shipped from China to New York approximately 999.7 grams of the fentanyl precursor 1-boc-4-AP, approximately 1,002.6 grams of the fentanyl precursor 1-boc-4-piperidone, and approximately 893.6 grams of the methamphetamine precursor methylamine.
In or about March 2023, WANG and CHEN met in person with an individual whom CS-1 represented was CS-1’s boss but was in fact another DEA confidential source (“CS-2”). During the meeting, WANG and CHEN discussed AMARVEL BIOTECH’s ability to supply ton-quantities of fentanyl precursors to New York for CS-1 and CS-2’s fentanyl manufacturing operation. After CS-2 stated that CS-2 wanted a different formula for manufacturing fentanyl and that several of CS-2’s American customers had purportedly died, WANG and CHEN advised they had “a lot of customers in America and Mexico” who could provide technical assistance with fentanyl production.
After the March 2023 meeting, AMARVEL BIOTECH, WANG, CHEN, and YANG agreed to sell CS-1 and CS-2 approximately 210 kilograms of fentanyl precursors in exchange for payment in cryptocurrency. During an April 10, 2023, video call with WANG and CHEN, CS-2 stated that the approximately 210 kilograms of fentanyl precursors would be used to manufacture approximately 50 to 55 kilograms of fentanyl — an amount that could contain approximately 25 million deadly doses.
In or about May 2023, AMARVEL BIOTECH, WANG, CHEN, and YANG sent to the United States the shipment ordered by CS-1 and CS-2. On or about May 5, 2023, the DEA retrieved the precursor shipment from a warehouse near Los Angeles, California. Lab testing confirmed the presence of a precursor chemical for a fentanyl analogue. In an encrypted messaging group chat with CS-1, CS-2, WANG, and CHEN, YANG explained that “New York, the United States, has been strict in checking the precursors of the ‘final product’ some time ago, so for the sake of safety, this time it is sent to California.”
In or about June 2023, WANG and CHEN met again with CS-2. During the meeting, WANG and CHEN discussed with CS-2 a multi-ton order of fentanyl precursor chemicals. WANG and CHEN also discussed the need to take additional measures to protect themselves from detection and interdiction of their shipments “because recently American government . . . seized some Mexican group and they followed the routes to China,” where the U.S. Government found “our competitor in China” — an apparent reference to fentanyl-related charges filed in the Southern District of New York and announced in April 2023 against, among others, leadership of the Sinaloa Cartel and certain China-based precursor chemical company executives.[2]
* * *
A table containing the charges and minimum and maximum potential penalties for AMARVEL BIOTECH, a company in China; WANG, 35, of China; CHEN, 31, of China; and YANG, of China, is set forth below. The minimum and 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 a judge.
Count
Defendants
Minimum and Maximum Penalties
Count One: Fentanyl Trafficking Conspiracy
AMARVEL BIOTECH, WANG, CHEN, and YANG
Mandatory minimum sentence of 10 years in prison; maximum sentence of life in prison
Fine of the greatest of $50 million for organizations or $10 million for individuals, twice the gross pecuniary gain from the offense, or twice the gross pecuniary loss to others from the offense
Count Two: Conspiracy to Import Fentanyl Precursor Chemical with Intent to Manufacture Fentanyl
AMARVEL BIOTECH, WANG, CHEN, and YANG
Maximum sentence of 20 years in prison
Fine of the greatest of $500,000 for organizations or $250,000 for individuals, twice the gross pecuniary gain from the offense, or twice the gross pecuniary loss to others from the offense
Count Three: Importation of Fentanyl Precursor Chemical with Intent to Manufacture Fentanyl
AMARVEL BIOTECH, WANG, and YANG
Maximum sentence of 20 years in prison
Fine of the greatest of $500,000 for organizations or $250,000 for individuals, twice the gross pecuniary gain from the offense, or twice the gross pecuniary loss to others from the offense
Count Four: Importation of Methamphetamine Precursor Chemical
AMARVEL BIOTECH, WANG, and YANG
Maximum sentence of 10 years in prison
Fine of the greatest of $500,000 for organizations or $250,000 for individuals, twice the gross pecuniary gain from the offense, or twice the gross pecuniary loss to others from the offense
Count Five: Conspiracy to Commit Money Laundering
AMARVEL BIOTECH, WANG, CHEN, and YANG
Maximum sentence of 20 years in prison
Fine of the greatest of $500,000 or twice the value of the monetary instrument or funds involved in the laundering
Mr. Williams praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit. Mr. Williams also thanked the DEA Bangkok Country Office, DEA Wellington Country Office, DEA Beijing Country Office, DEA Honolulu District Office, DEA New York Organized Crime Drug Enforcement Task Force (“OCDETF”) Strike Force, DEA Riverside District Office, DEA Special Testing Laboratory, the Office of International Affairs of the Department of Justice’s Criminal Division, the Royal Thai Police Narcotics Suppression Bureau, the Fiji Police Force Narcotic Bureau, the Fiji Office of the Director of Public Prosecutions, and the U.S. Attorney’s Office for the District of Hawaii for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kevin Sullivan and Alexander Li are in charge of the prosecution.
The charges 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 and other court filings set forth herein constitute only allegations, and every fact described should be treated as an allegation.
[2] United States v. Ivan Archivaldo Guzman Salazar, et al., No. 23 Cr. 180 (S.D.N.Y. Apr. 4, 2023).
U.S. v. Amarvel Biotech et al IndictmentU.K. Citizen Sentenced to Five Years in Prison for Cybercrime OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOSEPH JAMES O’CONNOR, a/k/a “PlugwalkJoe,” a U.K. citizen, was sentenced today to five years in prison for his role in a wide array of cybercrime offenses. O’CONNOR was extradited from Spain on April 26, 2023, and pled guilty on May 9, 2023, before U.S. District Judge Jed S. Rakoff to two sets of charges: (i) conspiracy to commit computer hacking and other charges pending in the Southern District of New York relating to a fraudulent scheme perpetrated by O’CONNOR and his co-conspirators to use a cyber intrusion technique known as a SIM swap attack to steal cryptocurrency, then valued at approximately $794,000, from a Manhattan-based cryptocurrency company and then to launder the proceeds of the scheme (the “SDNY Case”), and (ii) a set of charges filed in the Northern District of California, and transferred to the SDNY under Federal Rule of Criminal Procedure 20, relating to O’Connor’s role in the July 2020 hack of Twitter, computer intrusions related to takeovers of TikTok and Snapchat user accounts, and cyberstalking two separate victims (the “NDCA Case”). Judge Rakoff imposed today’s sentence.
According to the publicly filed charging documents against O’CONNOR, court filings, and statements made in court:
The SDNY Case
During a cyber intrusion known as a subscriber identity module (“SIM”) swap attack, cyber threat actors gain control of a victim’s mobile phone number by linking that number to a SIM card controlled by the threat actors, resulting in the victim’s calls and messages being routed to a malicious unauthorized device controlled by the threat actors. The threat actors then typically use control of the victim’s mobile phone number to obtain unauthorized access to accounts held by the victim that are registered to the mobile phone number.
Between approximately March 2019 and May 2019, O’CONNOR and his co-conspirators perpetrated a scheme to use SIM swaps to conduct cyber intrusions in order to steal a large amount of cryptocurrency from a Manhattan-based cryptocurrency company (“Company-1”), which, at all relevant times, provided wallet infrastructure and related software to cryptocurrency exchanges around the world.
As part of the scheme, O’CONNOR and his co-conspirators successfully perpetrated SIM swap attacks targeting at least three Company-1 executives. Following a successful SIM swap attack targeting one of the executives on or about April 30, 2019, O’CONNOR and his co-conspirators successfully gained unauthorized access to multiple Company-1 accounts and computer systems. On or about May 1, 2019, through their unauthorized access, O’CONNOR and his co-conspirators stole and fraudulently diverted cryptocurrency of various types (the “Stolen Cryptocurrency”) from cryptocurrency wallets maintained by Company-1 on behalf of two of its clients. The Stolen Cryptocurrency was worth at least approximately $794,000 at the time of the theft and is currently worth more than $1.6 million.
After stealing and fraudulently diverting the Stolen Cryptocurrency, O’CONNOR and his co-conspirators laundered it through dozens of transfers and transactions and exchanged some of it for Bitcoin using cryptocurrency exchange services. Ultimately, a portion of the Stolen Cryptocurrency was deposited into a cryptocurrency exchange account controlled by O’CONNOR.
The NDCA Case
Between 2019 and 2020, O’CONNOR participated in a variety of crimes associated with exploitation of social media accounts, online extortion, and cyberstalking.
In July 2020, O’CONNOR participated in a conspiracy to gain unauthorized access to social media accounts maintained by Twitter, Inc. (“Twitter”). In early July 2020, O’CONNOR’s co-conspirators used social engineering techniques to obtain unauthorized access to administrative tools used by Twitter to maintain its operations. Those co-conspirators were able to use the tools to transfer control of certain Twitter accounts from their rightful owners to various unauthorized users. In some instances, the co-conspirators took control themselves and used that control to launch a scheme to defraud other Twitter users. In other instances, the co-conspirators sold access to Twitter accounts to others. O’CONNOR communicated with others regarding purchasing unauthorized access to a variety of Twitter accounts, including accounts associated with public figures around the world. A number of Twitter accounts targeted by O’CONNOR were subsequently transferred away from their rightful owners. O’CONNOR agreed to purchase unauthorized access to one Twitter account for $10,000.
O’CONNOR also accessed without authorization one of the most highly visible TikTok accounts in August 2020, which was associated with a public figure with millions of followers (“Victim-1”). O’CONNOR and his associates obtained unauthorized access to Victim-1’s account via a SIM swap after discussing a variety of celebrities to target, and O’CONNOR used his unauthorized access to Victim-1’s platform to post self-promotional messages, including a video in which O’CONNOR’s voice is recognizable. O’CONNOR also stated publicly, via a post to Victim-1’s TikTok account, that he would release sensitive, personal material related to Victim-1 to individuals who joined a specified Discord server.
O’CONNOR targeted another public figure (“Victim-2”) in June 2019. O’CONNOR and his associates obtained unauthorized access to Victim-2’s account on Snapchat via a SIM swap. They used that access to obtain sensitive materials, to include private images, that Victim-2 had not made publicly available. O’CONNOR sent copies of these sensitive materials to his associates. O’CONNOR and his associates also reached out to Victim-2 and threatened to publicly release the stolen sensitive materials unless Victim-2 agreed to publicly post messages related to O’CONNOR’s online persona, among other things.
Lastly, O’CONNOR stalked and threatened a minor victim (“Victim-3”) in June and July 2020. In June 2020, O’CONNOR orchestrated a series of swatting attacks on Victim-3. A “swatting” attack occurs when an individual makes a false emergency call to a public authority in order to cause a law enforcement response that may put the victim or others in danger. On June 25, 2020, O’CONNOR called a local police department and falsely claimed that Victim-3 was making threats to shoot people. O’CONNOR provided an address that he believed was Victim-3’s address, which would have the result of causing a law enforcement response. That same day, O’CONNOR placed another call to the same police department and stated that he was planning to kill multiple people at the same address. In response to that call, the police department dispatched every on-duty officer to that address in reference to an armed and dangerous individual. O’CONNOR sent other swatting messages that same day to a high school, a restaurant, and a sheriff’s department in the same area. In those messages, O’CONNOR represented himself as either Victim-3 or as a resident at the address he believed was Victim-3’s. The following month, O’CONNOR called multiple family members of Victim-3 and threatened to kill them.
The NDCA Case was transferred to the Southern District of New York pursuant to Federal Rule of Criminal Procedure 20 and consolidated with the SDNY Case before Judge Rakoff.
* * *
O’CONNOR, 24, of the United Kingdom, pled guilty before Judge Rakoff to the following charges: (i) as part of the SDNY Case — conspiracy to commit computer intrusions, conspiracy to commit wire fraud, and conspiracy to commit money laundering; and (ii) as part of the NDCA Case — conspiracy to commit computer intrusion, two counts of committing computer intrusions, making extortive communications, two counts of stalking, and making threatening communications. In addition to the prison term, O’CONNOR was sentenced to THREE years of supervised release. O’CONNOR was further ordered to pay $794,012.64 in forfeiture.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. He also thanked the Department of Justice’s Office of International Affairs for its assistance in the extradition.
The SDNY Case is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York. Assistant U.S. Attorney Olga I. Zverovich is in charge of the prosecution of the SDNY Case. The NDCA Case is being handled by the U.S. Attorney’s Office for the Northern District of California and the Computer Crime and Intellectual Property Section (“CCIPS”) of the Department of Justice. Assistant U.S. Attorney Andrew F. Dawson and CCIPS Assistant Deputy Chief Adrienne L. Rose are in charge of the prosecution of the NDCA Case.
U.K. Citizen Sentenced to Five Years for Cybercrime OffensesRead the Press Release
SAN FRANCISCO – Joseph James O’Connor, a/k/a “PlugwalkJoe,” a U.K. citizen, was sentenced today to five years in federal prison for his role in a wide array of cybercrime offenses. O’Connor was extradited from Spain on April 26, 2023, and pleaded guilty on May 9, 2023, before Southern District of New York U.S. District Judge Jed S. Rakoff to two sets of charges: (i) a set of charges filed in the Northern District of California, and transferred to the Southern District of New York under Federal Rule of Criminal Procedure 20, relating to O’Connor’s role in the July 2020 hack of Twitter, Inc. (Twitter), computer intrusions related to takeovers of TikTok and Snapchat user accounts, and cyberstalking two separate victims (the “NDCA Case”), and (ii) conspiracy to commit computer hacking and other charges pending in the Southern District of New York relating to a fraudulent scheme perpetrated by O’Connor and his co-conspirators to use a cyber intrusion technique known as a SIM swap attack to steal cryptocurrency, then valued at approximately $794,000, from a Manhattan-based cryptocurrency company and then to launder the proceeds of the scheme (the “SDNY Case”). U.S. District Judge Rakoff handed down today’s sentence.
“The investigation, charging, extradition, and prosecution of this case required the cooperation and coordinated efforts of many people,” said United States Attorney Ismail Ramsey. “This case demonstrates why cybercriminals can take no comfort in any anonymity they may think they enjoy. They will be identified, diligently pursued, and brought to justice.”
The NDCA Case
According to the publicly filed charging documents, court filings, and statements made in court, between 2019 and 2020, O’Connor participated in a variety of crimes associated with exploitation of social media accounts, online extortion, and cyberstalking.
In July 2020, O’Connor participated in a conspiracy to gain unauthorized access to social media accounts maintained by Twitter. In early July 2020, O’Connor co-conspirators used social engineering techniques to obtain unauthorized access to administrative tools used by Twitter to maintain its operations. Those co-conspirators were able to use the tools to transfer control of certain Twitter accounts from their rightful owners to various unauthorized users. In some instances, the co-conspirators took control themselves and used that control to launch a scheme to defraud other Twitter users. In other instances, the co-conspirators sold access to Twitter accounts to others. O’Connor communicated with others regarding purchasing unauthorized access to a variety of Twitter accounts, including accounts associated with public figures around the world. A number of Twitter accounts targeted by O’Connor were subsequently transferred away from their rightful owners. O’Connor agreed to purchase unauthorized access to one Twitter account for $10,000.
O’Connor also accessed without authorization one of the most highly visible TikTok accounts in August 2020, which was associated with a public figure with millions of followers (“Victim-1”). O’Connor and his associates obtained unauthorized access to Victim-1’s account via a SIM swap after discussing a variety of celebrities to target, and O’Connor used his unauthorized access to Victim-1’s platform to post self-promotional messages, including a video in which O’CONNOR’s voice is recognizable. O’Connor also stated publicly, via a post to Victim-1’s TikTok account, that he would release sensitive, personal material related to Victim-1 to individuals who joined a specified Discord server.
O’Connor targeted another public figure (“Victim-2”) in June 2019. O’Connor and his associates obtained unauthorized access to Victim-2’s account on Snapchat via a SIM swap. They used that access to obtain sensitive materials, to include private images, that Victim-2 had not made publicly available. O’Connor sent copies of these sensitive materials to his associates. O’Connor and his associates also reached out to Victim-2 and threatened to publicly release the stolen sensitive materials unless Victim-2 agreed to publicly post messages related to O’Connor online persona, among other things.
Lastly, O’Connor stalked and threatened a minor victim (“Victim-3”) in June and July 2020. In June 2020, O’Connor orchestrated a series of swatting attacks on Victim-3. A “swatting” attack occurs when an individual makes a false emergency call to a public authority in order to cause a law enforcement response that may put the victim or others in danger. On June 25, 2020, O’Connor called a local police department and falsely claimed that Victim-3 was making threats to shoot people. O’Connor provided an address that he believed was Victim-3’s address, which would have the result of causing a law enforcement response. That same day, O’Connor placed another call to the same police department and stated that he was planning to kill multiple people at the same address. In response to that call, the police department dispatched every on-duty officer to that address in reference to an armed and dangerous individual. O’Connor sent other swatting messages that same day to a high school, a restaurant, and a sheriff’s department in the same area. In those messages, O’Connor represented himself as either Victim-3 or as a resident at the address he believed was Victim-3’s. The following month, O’Connor called multiple family members of Victim-3 and threatened to kill them.
The NDCA Case was transferred to the Southern District of New York pursuant to Federal Rule of Criminal Procedure 20 and consolidated with the SDNY Case before U.S. District Judge Rakoff.
The SDNY Case
During a cyber intrusion known as a subscriber identity module (“SIM”) swap attack, cyber threat actors gain control of a victim’s mobile phone number by linking that number to a SIM card controlled by the threat actors, resulting in the victim’s calls and messages being routed to a malicious unauthorized device controlled by the threat actors. The threat actors then typically use control of the victim’s mobile phone number to obtain unauthorized access to accounts held by the victim that are registered to the mobile phone number.
Between approximately March 2019 and May 2019, O’Connor and his co-conspirators perpetrated a scheme to use SIM swaps to conduct cyber intrusions in order to steal a large amount of cryptocurrency from a Manhattan-based cryptocurrency company (“Company-1”), which, at all relevant times, provided wallet infrastructure and related software to cryptocurrency exchanges around the world.
As part of the scheme, O’Connor and his co-conspirators successfully perpetrated SIM swap attacks targeting at least three Company-1 executives. Following a successful SIM swap attack targeting one of the executives on or about April 30, 2019, O’Connor and his co-conspirators successfully gained unauthorized access to multiple Company-1 accounts and computer systems. On or about May 1, 2019, through their unauthorized access, O’Connor and his co-conspirators stole and fraudulently diverted cryptocurrency of various types (the “Stolen Cryptocurrency”) from cryptocurrency wallets maintained by Company-1 on behalf of two of its clients. The Stolen Cryptocurrency was worth at least approximately $794,000 at the time of the theft and is currently worth more than $1.6 million.
After stealing and fraudulently diverting the Stolen Cryptocurrency, O’Connor and his co-conspirators laundered it through dozens of transfers and transactions and exchanged some of it for Bitcoin using cryptocurrency exchange services. Ultimately, a portion of the Stolen Cryptocurrency was deposited into a cryptocurrency exchange account controlled by O’Connor.
* * *
O’Connor, 24, of the United Kingdom, pleaded guilty before U.S. District Judge Rakoff to the following charges: (i) as part of the NDCA Case – a conspiracy to commit computer intrusion, two counts of committing computer intrusions, making extortive communications, two counts of stalking, and making threatening communications; and (ii) as part of the SDNY Case – a conspiracy to commit computer intrusions, conspiracy to commit wire fraud, and conspiracy to commit money laundering. In addition to the prison term, O’Connor was sentenced to three years of supervised release. O’Connor was further ordered to pay $794,012.64 in forfeiture.
The FBI is investigating the case with assistance from the US Secret Service, San Francisco Field Office; US Secret Service, Criminal Investigations Division; IRS Criminal Investigations, Cyber Crimes Unit; Spanish National Police; and United Kingdom National Crime Agency.
The U.S. Attorney’s Office for the Northern District of California and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are handling the NDCA case. Assistant U.S. Attorney Andrew F. Dawson for the Northern District of California and CCIPS Assistant Deputy Chief Adrienne L. Rose are prosecuting the case.
The U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit is handling the SDNY case. Assistant U.S. Attorney Olga I. Zverovich for the Southern District of New York is prosecuting the case.
The Justice Department’s Office of International Affairs provided valuable assistance in securing the extradition of O’Connor.
Two Men Sentenced to Prison Terms in $1 Million ‘Upfront-Fee’ SchemeRead the Press Release
NEWARK, N.J. – A Camden County, New Jersey, man and a Nevada man were sentenced to prison terms for their roles in defrauding multiple victims through a $1 million “upfront-fee” scheme, U.S. Attorney Philip R. Sellinger announced today.
Roy Johannes Gillar, 51, of Las Vegas, was sentenced to six years in prison; Harold Mignott, 60, of Voorhees, New Jersey, was sentenced to three years in prison. They were each convicted on Oct. 21, 2022, of wire fraud conspiracy and four counts of wire fraud following a five-week jury trial before U.S. District Judge John Michael Vazquez. Gillar was also convicted of one count of transacting in criminal proceeds. Judge Vazquez imposed the sentences on June 22, 2023, in Newark federal court. A co-defendant, Jerrid Douglas of Freehold, New Jersey, who was also convicted, is scheduled to be sentenced on July 26, 2023.
According to documents in this case and evidence at trial:
From March 2016 through June 2016, Douglas, Gillar, and Mignott, along with a fourth conspirator, agreed to defraud the owners of the victim company of approximately $1 million. The defendants fraudulently induced the two victim company owners to enter a joint venture agreement with the defendants’ New Jersey-based shell company. The defendants falsely represented that their company could acquire and provide a “standby letter of credit” (SBLC) backed by either €1 billion in cash or highly lucrative Mexican gold bonds. An SBLC is a guarantee of payment issued by a bank on behalf of a client that is used should the client fail to fulfill a contractual commitment with a third party.
The victim company wanted access to the standby letter of credit so it could purchase raw gold overseas and sell it to gold refineries. As part of the joint venture agreement, the company agreed to pay the defendants $1 million for the bank fee associated with the standby letter of credit.
In order to cover up the scheme and convince the victims to approve the transfer of the funds, the defendants made numerous verbal and written misrepresentations, including providing the victims with a phony letter from a major international bank saying that it was ready, willing, and able to provide a €1 billion SBLC to the defendants’ shell company.
However, after the victim company owners transmitted $800,000 of the $1 million to the defendants, the defendants failed to provide an SBLC or anything of value. Instead, the defendants misappropriated the money for their personal use.
In addition to the prison terms, Judge Vazquez sentenced Gillar to three years of supervised release and ordered to pay restitution of $1.1 million and forfeiture of $1 million. Mignott was sentenced to three years of supervised release and ordered to pay restitution of $1.1 million and forfeiture of $219,000.
U.S. Attorney 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 sentencing.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
Two Men Plead Guilty to Federal Drug CrimesRead the Press Release
BECKLEY, W.Va. – Lorenzo B. Herbert, 33, of Beckley, pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl and 50 grams or more of a mixture containing methamphetamine and Rory Divaughn Spells, 35, of Chicago, Illinois, pleaded guilty to possession with intent to distribute a quantity of fentanyl and a quantity of methamphetamine.
According to court documents and statements made in court, on September 28, 2022, law enforcement officers executed a search warrant at a residence near Beckley. Officers found quantities of fentanyl, a substance containing methamphetamine and $8,245. Herbert and Spells each admitted that they were mixing and preparing fentanyl for distribution in the residence’s kitchen at the time the search warrant was executed. Herbert and Spells further admitted the cash represented proceeds of previous drug trafficking activity.
Herbert is scheduled to be sentenced on October 19, 2023, and faces a mandatory minimum of five years and up to 40 years in prison, at least four years of supervised release, and a $5 million fine. Spells is scheduled to be sentenced on October 27, 2023, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
The guilty pleas are the result of a drug trafficking investigation dubbed Southside Take Down. United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Beckley/Raleigh County Drug and Violent Crime Unit, the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Metropolitan Drug Enforcement Network Team (MDENT), FBI Chicago, and the Chicago Police Department.
United States District Judge Frank W. Volk presided over the hearings. Assistant United States Attorney Timothy D. Boggess is prosecuting the cases.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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. 5:22-cr-193 and 5:23-cr-72.
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Twenty-Four Defendants Indicted in Pittsburgh Drug Trafficking RingRead the Press Release
PITTSBURGH, Pa. – A federal grand jury in Pittsburgh has returned an Indictment following a five-month Title III wiretap investigation targeting a drug trafficking organization operating in the Pittsburgh area. The Indictment charges a total of 24 individuals residing in Pittsburgh with violations of federal drug and firearm laws, United States Attorney Eric G. Olshan announced today.
The nine-count Indictment names the following 24 individuals as the defendants:
- LAMONT BELL, 54, of Pittsburgh, Pennsylvania.
- DELANO BROWN, 36, of Pittsburgh, Pennsylvania.
- ANDRE CAIN, 46, of Pittsburgh, Pennsylvania.
- MARVIN COATES, 49, of Pittsburgh, Pennsylvania.
- ANTHONY COKER, 46, of Pittsburgh, Pennsylvania.
- MARK COOK, 55, of Clairton, Pennsylvania.
- ROBERT FIELDS, 29, of Pittsburgh, Pennsylvania.
- MARVIN GRIMMIT, 68, of Pittsburgh, Pennsylvania.
- TYRON HARRISON, 30, formerly of Pittsburgh, Pennsylvania.
- BRIAN HORTON, 22, formerly of Pittsburgh, Pennsylvania.
- ERIC HOWARD, 35, of McKees Rocks, Pennsylvania.
- WILLIAM JONES, 28, formerly of Pittsburgh, Pennsylvania.
- MICAH LATIMER, 22, of Pittsburgh, Pennsylvania.
- ANTHONY LEE, 43, of Pittsburgh, Pennsylvania.
- WILLIAM LEWIS, 45, of Pittsburgh, Pennsylvania.
- SHAWN NORWOOD, 32, of South Park, Pennsylvania.
- EDWIN PEOPLES, 44, of Pittsburgh, Pennsylvania.
- ERIC PEOPLES, 46, of Pittsburgh, Pennsylvania.
- DAMON PETERS, 19, of Pittsburgh, Pennsylvania.
- KEVIN RUCKER, 52, of Pittsburgh, Pennsylvania.
- MAURICE SMITH, 28, of Pittsburgh, Pennsylvania.
- JAMONE WATSON, 28, of Pittsburgh, Pennsylvania.
- ROY WOOD, 47, of Pittsburgh, Pennsylvania.
- SEAN WOODY, 32, of Pittsburgh, Pennsylvania.According to the Indictment, from July 2022 until June 2023, Rucker was a large-scale distributor of cocaine in the Pittsburgh area, and supplied several individuals, including Coker, with substantial quantities of cocaine. Coker, in turn, supplied several other Pittsburgh-area drug traffickers, many of whom were members and associates of the “Drizzy Gang” street gang. Members and associates of this gang trafficked firearms and narcotics in Pittsburgh’s Hill District, operating an open-air drug market on Watson Street.
Specifically, from July 2022 through June 2023, Rucker, Cain, Lewis, Bell, Coker, Woody, Latimer, Brown, Lee, Watson, Cook, Eric Peoples, Edwin Peoples, Fields, Coates, Wood, Norwood, and Grimmitt allegedly conspired to distribute and possess with intent to distribute cocaine and/or crack cocaine, Schedule II controlled substances. Additionally, between March 2023 and May 23, 2023, Jones, Watson, Peters, and Brown allegedly conspired to possess with intent to distribute fentanyl, a Schedule II controlled substance. In a third alleged conspiracy, between February 2023 and June 2023, Howard and Brown conspired to possess with intent to distribute fentanyl, a Schedule II controlled substance. Lastly, Latimer, Smith, Lee, Jones, Harrison, and Horton allegedly possessed firearms and ammunition despite being prohibited as a result of prior felony convictions.
On June 22, 2023, a 25th defendant was charged by criminal complaint. According to the charging documents, John Johnson, age 46, has been charged with drug trafficking and firearms offenses following execution of a search warrant at his residence and the resulting recovery of suspected cocaine and a loaded firearm.
“This office is committed to protecting the residents of Western Pennsylvania from those whose violent and destructive actions jeopardize the safety and well-being of our communities,” said U.S. Attorney Olshan. “Together with our trusted law enforcement partners at the FBI, DEA, and Pittsburgh Bureau of Police, we will continue our effort to hold accountable the most dangerous offenders through effective enforcement of federal drug and firearm laws.”
“Violent groups don’t belong in our community,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “We will continue to do everything we can to ensure the public can live free of fear, violence, and intimidation. These arrests are the direct result of the hard work and dedication of the FBI’s Greater Pittsburgh Safe Streets Task Force and our partners in their efforts to combat gang members who distribute dangerous drugs like heroin, cocaine, and fentanyl in our communities.”
“Today’s announcement deals a significant blow to a drug trafficking organization that has dealt misery and pain throughout the communities of Western Pennsylvania. The DEA and our law enforcement partners are committed to safeguarding the health and safety of our communities and to keeping Americans safe from the menace of drugs and the violence associated with their distribution,” said Assistant Special Agent in Charge Keith Hart, who is the head of DEA operations across Western Pennsylvania. “I commend the extreme hard work of the members of the DEA and our partners in making our communities safer.”
“With this indictment, several communities are breathing a little more easily today, reassured that the Pittsburgh Bureau of Police and our federal law enforcement partners are consistently committed to disassembling criminal networks and inhibiting drug and gun pipelines which hurt children and families,” said Pittsburgh Police Chief Larry Scirotto. “We will continue to work closely with our local and federal partners and community members to prevent violent crime, because everyone deserves to live in secure and thriving neighborhoods.”
For Rucker, Cain, and Coker, the law provides for a maximum total sentence of not less than 10 years in prison and up to life, a fine of no greater than $10,000,000.00, a term of supervised release of at least five years, or a combination thereof. For Lewis and Woody, the law provides for a maximum total sentence of not less than 5 years in prison and up to 40 years in prison, a fine of no greater than $5,000,000, a term of supervised release of at least four years, or a combination thereof. For Bell, Latimer, Brown, Lee, Watson, Cook, Eric Peoples, Edwin Peoples, Fields, Coates, Wood, Norwood, Grimmitt, Jones, Peters, and Howard the law provides for a maximum total sentence of up to 20 years in prison, a fine of no greater than $1,000,000, a term of supervised release of at least three years, or a combination thereof. As to the firearms charges for Latimer, Smith, Lee, Jones, Harrison, and Horton, the law provides for a maximum sentence of 15 years, a fine of no greater than $250,000, and a term of supervised release of three years. For Johnson, the firearm charge carries a maximum total sentence of not less than 5 years in prison up to life, a term of supervised release of not less than three years, a fine of up to $1,500,000, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorneys Katherine C. Jordan and Douglas C. Maloney are prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Federal Bureau of Investigation, and Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case. FBI Pittsburgh’s Safe Streets Task Force comprises investigators from the FBI, Pittsburgh Bureau of Police, Allegheny County Sheriff’s office, PA Attorney General’s Office, Penn Hills Police Department, and Allegheny County Probation and Parole.
This prosecution is a result of two Organized Crime Drug Enforcement Task Force (OCDETF) investigations. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Troutville Man Pleads Guilty to Drug Trafficking ChargesRead the Press Release
PITTSBURGH, PA – A former resident of Troutville, Pennsylvania pleaded guilty in federal court to violation of federal narcotics and money laundering laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Eric G. Olshan announced today.Derek Hillebrand, age 27, pleaded guilty to one count of conspiracy to distribute and possesses with intent to distribute 50 grams or more of methamphetamine, 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, 500 grams or more of a mixture and substance containing a detectable amount of cocaine, and a quantity of marijuana as well as one count of conspiracy to launder money before United States District Judge Christy Criswell Wiegand. Charlan was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that Hillebrand received at least 220 pounds of methamphetamine and over 100 kilograms of marijuana that was shipped from California and Nevada. Hillebrand shipped a large amount of United States currency to the Stockton, California area to pay for the narcotics.
Judge Wiegand scheduled sentencing for Hillebrand on October 19, 2023, at 10:00 a.m. The law provides for a sentence of not less than ten years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court ordered that the defendant remain detained pending sentencing.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Three Springfield Men Arrested for Fentanyl DistributionRead the Press Release
BOSTON – Three Springfield men were arrested and charged yesterday in connection with a conspiracy to distribute fentanyl.
Abraham Heredia, 23, and Jose Heredia, Jr., 34, were charged with conspiracy to distribute fentanyl. Lamiek White, 29, was charged with possession of fentanyl with intent to distribute and being a felon in possession of a firearm. The defendants appeared in federal court in Springfield yesterday before U.S. District Court Magistrate Judge Katherine A. Robertson.
According to the charging documents Heredia and Heredia, Jr. conspired on at least two dates to distribute fentanyl. On one occasion on June 7, 2023, the defendants allegedly conspired to distribute more than one and a half kilograms of fentanyl. It is alleged that approximately 200 grams of fentanyl and a firearm with an obliterated serial number were found during a search of White’s residence.
The charge of conspiracy to distribute fentanyl and possession of fentanyl with intent to distribute provides for a sentence of at up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Christopher DiMenna, Acting Special Agent in Charge of the U.S. Federal Bureau of Investigation, Boston Division made the announcement today. The Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; the Holyoke, Springfield, Chicopee, West Springfield and Easthampton Police Departments; the Berkshire, Hampden and Franklin County Sherriff’s Offices; and the Massachusetts State Police Gang Unit provided valuable assistance in the investigation. Assistant U.S. Attorney Neil L. Desroches of Levy’s Springfield Branch Unit is 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 documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Chinese Chemical Manufacturing Companies and Five Employees Charged with Conspiring to Manufacture FentanylRead the Press Release
Prosecution is Among the First of its Kind
Earlier today, at the federal courthouse in Brooklyn, two indictments were unsealed that detail criminal conspiracies by companies and employees based in China to manufacture and distribute fentanyl in the United States. This prosecution is among the first ever in the United States to charge Chinese chemical manufacturing companies with supplying precursor chemicals used to make fentanyl to the United States.
The first indictment charges Anhui Rencheng Technology Co. (Rencheng), Ltd., Anhui Moker New Material Technology Co., Shutong Wang and Shifang Ruan with conspiracy to manufacture and distribute fentanyl, manufacture of fentanyl, and other related offenses. In addition, the indictment charges those same defendants, as well as Xinyu Zhao and Yue Gao, with illegally concealing their activities, including through customs fraud and introducing misbranded drugs into the United States marketplace. The indictment also charges Rencheng, Wang, and Ruan with conspiracy to distribute butonitazene, a controlled substance.
The second indictment charges Hefei GSK Trade Co., Ltd, also known as “Hebei Gesuke Trading Co. Ltd.” and “Hebei Sinaloa Trading Co., Ltd.”, and Ruiqing Li with similar offenses, including conspiracy to manufacture and distribute fentanyl, manufacture of fentanyl, conspiracy to distribute a List I chemical, distribution of a List I chemical, customs fraud conspiracy, introducing misbranded drugs into interstate commerce, and distribution of metonitazene, a controlled substance.
Merrick Garland, United States Attorney General, Breon Peace, United States Attorney for the Eastern District of New York, Lisa O. Monaco, United States Deputy Attorney General, and Anne Milgram, Administrator, Drug Enforcement Administration (DEA), Keechant, L. Sewell, Commissioner, New York City Police Department, and Steven A. Nigrelli, Acting Superintendent, New York State Police, announced the charges.
“As alleged, the defendants knowingly distributed the chemical building blocks of fentanyl to the United States and Mexico, even providing advice on how they should be used to manufacture this dangerous drug which inflicts untold tragedy in New York City, Long Island and across the nation,” stated United States Attorney Peace. “This prosecution shows that the companies and individuals who fuel our nation’s deadly opioid epidemic—wherever they are located—will be found and prosecuted to the full extent of the law.”
“When I announced in April that the Justice Department had taken significant enforcement actions against the Sinaloa Cartel, I promised that the Justice Department would never forget the victims of the fentanyl epidemic,” said Attorney General Merrick B. Garland. “I also promised that we would never stop working to hold accountable those who bear responsibility for it. That includes not only going after the leaders of the Cartels, their drug and gun traffickers, their money launderers, security forces, and clandestine lab operators. It also includes stopping the Chinese chemical companies that are supplying the cartels with the building blocks they need to manufacture deadly fentanyl.”
“Today’s announcement is a down payment on our pledge to use every tool in the government’s arsenal, in every corner of the globe, to protect American communities,” said Deputy Attorney General Lisa O. Monaco. “The Justice Department will not rest or relent in investigating and prosecuting every link of the fentanyl supply chain, including the PRC companies and executives who produce and export vast quantities of the precursor chemicals the drug cartels need to peddle their poison. There can be no safe haven.”
“Today’s announcement is a considerable step forward in our unrelenting fight against fentanyl, targeting the threat where it starts,” said DEA Administrator Anne Milgram. “These companies and individuals are alleged to have knowingly supplied drug traffickers, in the United States and Mexico, with the ingredients and scientific know-how needed to make fentanyl – a drug that continues to devastate families and communities across the United States, killing Americans from all walks of life. Targeting entire criminal drug networks, from the source of supply to the last mile of distribution, is critical to saving American lives. DEA will not stop until this crisis ends.”
“Today’s charges are further proof of the unceasing, wide-ranging efforts the New York City Police Department will undergo to rid our city of illegal drugs,” stated NYPD Commissioner Sewell. “No matter where or how this poison is manufactured and distributed, we are united with our local, state, federal, and international law-enforcement partners in the fight against drug traffickers. To that end, I thank and commend the U.S. Department of Justice, the Office of the U.S. Attorney for the Eastern District of New York, the U.S. Drug Enforcement Administration, the New York State Police, and everyone else involved in this case for their exceptional work.”
New York State Police Acting Superintendent Nigrelli stated, “The prosecution of these criminals reinforces that we will continue to be vigilant in stopping the flow of dangerous, illegal drugs into our country. The manufacturing and distribution of these highly addictive drugs perpetuates a cycle of substance abuse which poses a significant threat to safety and quality of life within our communities. Drug trafficking organizations of any kind will not be tolerated. I thank the U.S. Attorney’s Office for the Eastern District of New York and our law enforcement partners for their continuing commitment to identify, arrest and prosecute anyone who attempts to infiltrate these dangerous drugs into our nation.”
The misuse of fentanyl, a Schedule II controlled substance, has resulted in one of the deadliest drug threats the United States has ever faced. It is a highly addictive synthetic opioid that is approximately 50 times more potent than heroin and 100 times more potent than morphine.
As alleged in the indictments, the defendant companies supplied precursor chemicals to the United States and Mexico, among other places, knowing they would be used to manufacture fentanyl. The defendant companies openly advertised their products all over the world, including to the United States and Mexico, on social media platforms. They also sent their chemical products to the United States and Mexico by boat and by air, using public and private international mail and package carriers. To prevent detection and interception of chemical products at the borders, the defendant companies employed deceptive and fraudulent practices, such as mislabeling packages, falsifying customs forms, and making false declarations at border crossings. The chemicals distributed by the defendants included all the materials necessary to manufacture fentanyl via the most common pathways.
The defendant companies attempted to obfuscate their distribution of fentanyl precursors by adding “masking” molecules, which slightly alter the chemical signature of the underlying precursor chemicals. By changing the chemical signature, an altered substance could evade testing protocols and relevant regulations by appearing to be a new substance. Such masking molecules are easily removed, thus enabling the purchaser to return the substance to its original form as a fentanyl precursor. The defendant companies not only produced and distributed masked precursors, but also provided instructions about how to remove the masking molecules upon receipt, thus helping their customers to more effectively obtain banned precursors and produce fentanyl. The defendants also gave instructions on how to improve fentanyl yield and advice on which chemicals to buy to replace banned precursor products.
Mexican drug trafficking organizations, including but not limited to the Sinaloa Cartel and the Jalisco New Generation Cartel, have increasingly availed themselves of the fentanyl precursors and masked fentanyl precursors developed and distributed by the defendant companies and companies like them. The chemicals provided by the defendant companies have enabled such cartels and other drug trafficking organizations to produce fentanyl in clandestine laboratories in Mexico on a massive scale, for subsequent distribution in the United States and elsewhere. The materials and instructions provided by the defendant companies and companies like them have directly caused and contributed to the influx of deadly fentanyl into the United States.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering section. Assistant United States Attorneys Francisco Navarro, Erik Paulsen, Chand Edwards-Balfour, Adam Amir and Saritha Komatireddy are in charge of the prosecution with assistance from EDNY Special Agent George Dietz and Paralegal Specialist Bridget Donovan. The joint investigation was conducted by the DEA New York, DEA Mexico, DEA Diversion Control Division, DEA Special Testing and Research Laboratory, United States Customs and Border Protection New York field office, IRS New York Division, and United States Postal Inspection Services of New York. The Justice Department’s Office of International Affairs also provided assistance.
This effort is part of an 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 Defendants:
Anhui RENCHENG Technology Co., Ltd.
Hefei City, Anhui Province, ChinaAnhui MOKER New Material Technology Co.
Luyang District, Hefei City, Anhui Province, ChinaHEFEI GSK Trade CO., LTD, also known as “Hebei Gesuke Trading Co. Ltd.” and “Hebei Sinaloa Trading Co., Ltd.”
Shushan Economic Development Zone, Hefei City, Anhui Province, ChinaSHUTONG WANG, also known as “王书通”
ChinaShifang RUAN, also known as “Eva” and “阮世芳”
ChinaXinyu Zhao, also known as “Sarah” and “赵新”
ChinaYue Gao, also known as “Ellie” and “高悦,”
ChinaHEFEI GSK Trade CO., LTD, also known as “Hebei Gesuke Trading Co. Ltd.” and “Hebei Sinaloa Trading Co., Ltd.”
ChinaRuiqing Li, also known as “李瑞青”
ChinaE.D.N.Y. Docket Nos. 23-CR-263 and 23-CR-264
23-cr-263_anhi_moker_new_marketing_tech._co_et_al_indictment.pdf 23-cr-264_hefei_gsk_trade_co_ltd._et_al_indictment.pdfStatement of U.S. Attorney Breon Peace on Disruptions of the Fentanyl Precursor Chemical Supply ChainRead the Press Release
"Today we unsealed two indictments collectively charging eight defendants—including three Chinese chemical companies and five Chinese nationals—with, among other crimes, conspiring to manufacture and import fentanyl to the United States. These indictments are among the first in the nation —but not the last—involving companies that provide raw chemicals to drug traffickers knowing that these chemicals will be used to make and distribute fentanyl in the United States.
These charges are the culmination of a year-long investigation, which uncovered that the defendant companies manufactured and stockpiled fentanyl precursors—the chemicals and substances used to manufacture fentanyl and employed chemists to help them market and sell the substances.
The defendant companies openly advertised their products all over the world, including on social media platforms. And while the defendants largely sold the components of fentanyl, most of which were ostensibly legal, they did so as conspirators and accomplices, knowing these substances would be used in a fentanyl manufacturing scheme. As this prosecution shows, that is a crime.
This is akin to a company selling the components for a bomb, knowing they would be used to make an explosive. We know too well that the witches brew of fentanyl chemicals cooked by the drug traffickers can be just as deadly.
The defendants sent their chemicals to the U.S. and Mexico by boat and air, using public and private international mail and package carriers. To prevent detection and interception of chemical products at the borders, the defendant companies employed deceptive and fraudulent practices, such as mislabeling packages as other innocuous products such as cosmetics or food additives, falsifying customs forms, and making false declarations at border crossings.
The defendants also disguised known fentanyl precursors to avoid detection and seizure by law enforcement by adding “masking” molecules, thereby changing the chemical signature of the underlying precursor chemicals to make them harder to detect while passing through Customs and other inspections.
These altered substances could evade testing protocols and relevant regulations by appearing to be a new substance. Such masking molecules are easily removed, enabling the purchaser to return the substance to its original form.
The defendants even provided instructions about how to remove the masking molecules, ensuring their customers were able to use the banned precursor chemicals to manufacture fentanyl. And the defendants gave instructions on how to increase the amount of fentanyl the precursors would produce and advice on which chemicals to buy to replace banned precursor products.
Our investigation also revealed the defendants’ connections to Mexican drug cartels. The defendants communicated with suspected associates of the Sinaloa Cartel and the Cartel Jalisco New Generation in Mexico, advertised their “best-selling products in Mexico,” and even maintained warehouses in Mexico to store precursor chemicals.
The chemicals provided by the defendant companies have enabled cartels and other drug trafficking organizations to produce fentanyl in clandestine laboratories in Mexico on a massive scale, for subsequent distribution in the United States and elsewhere. The materials and instructions provided by the defendant companies and companies like them have directly caused and contributed to the influx of deadly fentanyl into the United States.
The defendants hoped that by selling only the components of fentanyl, or by masking the chemical structures of precursors, or mislabeling their products, they could escape scrutiny and accountability. This prosecution proves them wrong.
To the companies and employees that supply fentanyl precursor chemicals knowing they will be used to make illegal fentanyl, you are drug suppliers, and you are also drug traffickers. We will identify you and prosecute you to the full extent of the law.
The charges brought today exemplify our Office’s battle against fentanyl, which is inflicting untold tragedy in New York City, Long Island, and across the nation. Approximately 80,000 Americans died from fentanyl or other synthetic opioids in 2021—more than gun and auto-related deaths combined. We will not rest until this crisis is over.
Thank you to Attorney General Garland, Deputy Attorney General Monaco, and DEA Administrator Milgram for their leadership in combatting the fentanyl crisis. I’d also like to give special thanks to our law enforcement and agency partners, including DEA New York, DEA Mexico, DEA Diversion Control Division, DEA Special Testing and Research Laboratory, United States Customs and Border Protection’s New York field office, Internal Revenue Service’s New York Division, and United States Postal Inspection Services of New York.
I’d also like to thank the team from my Office who have worked tirelessly to protect our community, Francisco Navarro, Erik Paulsen, Chand Edwards-Balfour, and Adam Amir."
Springfield Man Sentenced for Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for robbing a local bank.
Richard Lavern Neil Kuder, 26, was sentenced by U.S. Chief District Judge Beth Phillips to nine years in federal prison without parole. The court also ordered Kuder to pay $7,215 in restitution.
On July 24, 2020, Kuder pleaded guilty to one count of bank robbery. Kuder admitted that he stole $7,215 from Central Bank of the Ozarks, 2501 N. Kansas Expressway in Springfield, on June 11, 2020. Kuder presented a bank teller with a note that said, “Very sorry to do this but I need all of the money out of cash register ... This is a robbery.” The teller handed him the cash and Kuder left the bank. He was last seen running through the bank’s parking lot.
In addition to the bank’s surveillance video, numerous businesses near the bank also had surveillance photos of Kuder as he was making his approach to the bank and his getaway after the robbery. Surveillance video showed him hailing a cab, which reported taking Kuder to an apartment complex. Investigators were able to track Kuder to his own apartment complex, which was nearby, and he was identified as a resident. The manager of the apartment complex said Kuder had been behind on his rent, but on the day of the bank robbery, he paid $1,000 cash for his past due rent and his next rental payment.
Detectives contacted Kuder, who was on parole for a previous robbery conviction, and he was taken into custody.
According to court documents, Kuder has two prior felony convictions and 13 prior misdemeanor convictions, including several violent crimes. These crimes of violence have included resisting and striking a law enforcement officer, striking and strangling an unknown man on a local bus and then striking his daughter when she tried to assist her father, and using a firearm to threaten store security and another person.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department and the FBI.
Sioux Falls Man Charged in Federal Court with Possession of a Firearm by a Prohibited PersonRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a man from Sioux Falls, South Dakota, has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Israel Estrada, age 29, was indicted on May 2, 2023. He made his initial appearance before U.S. Magistrate Judge Veronica L. Duffy on June 20, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody, and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution and forfeiture may also be ordered.
According to the Indictment, on March 3, 2023, Estrada possessed a firearm, after having been convicted of a felony. The firearm had been previously shipped and transported in interstate and foreign commerce.
The charges are merely accusations, and Estrada is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by Homeland Security Investigations. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Estrada was remanded to the custody of the U.S. Marshals Service pending further proceedings and trial. A trial date of August 29, 2023, has been set.
Seven Defendants Sentenced to Federal Prison in $11.5 Million Fraud CaseRead the Press Release
LITTLE ROCK— Seven defendants were sentenced to federal prison for their involvement in a scheme to defraud the U.S. Department of Agriculture out of more than $11.5 million that was intended to benefit farmers who had been discriminated against. Chief United States District Judge D.P. Marshall, Jr. sentenced the defendants earlier today.
Four of the defendants, all of whom are sisters, were each sentenced to serve 24 months in federal prison. Lynda Charles, 73, of Hot Springs; Rosie Bryant, 75, of Colleyville, Texas; Delois Bryant, 76, of North Little Rock; and Brenda Sherpell, 73, of Allport; each pleaded guilty on July 6, 2022, to conspiracy to commit mail fraud and to defraud the Internal Revenue Service.
Niki Charles, 50, of Puerto Rico, was sentenced to serve 16 months in federal prison for her involvement in the fraud scheme. Charles admitted during her guilty plea that she and others solicited people to file false claims, asserting they were discriminated against when they tried to get assistance from USDA for their farming operations. Charles said she verified statements from corroborating witnesses who submitted affidavits to support the claims, but none of those witnesses actually appeared before Charles. Those actions resulted in $4.5 million in loss.
Everett Martindale, 76, of Little Rock, was sentenced to a year and a day in federal prison. Martindale worked as an attorney and acted as the legal representative for most of the claimants that the five women recruited. Jerry Green, 42, of Grand Prairie, Texas, a tax preparer hired by the sisters to falsify tax returns, was also sentenced to a serve a year and a day.
As documented in plea agreements, the defendants submitted claims under two programs: the Black Farmers Discrimination Litigation (BFDL) settlement and the Hispanic and Women Farmers and Ranchers (HWFR) claim program. The BFDL settlement resulted from a class action lawsuit filed in 1997 in which a group of black farmers claimed they had been discriminated against when they applied for farm credit, credit servicing, or farm benefits from USDA. Similarly, the HWFR claim program was created after groups of Hispanic and women farmers filed separate lawsuits against USDA, also alleging discrimination in their farm benefit programs.
Both BFDL and HWFR resulted in a claims process where farmers who could show they had applied for participation in a USDA benefit program and believed they had been discriminated against could make a claim for financial relief. A successful claim resulted in an award of $62,500. Of that, $50,000 would be made payable to the claimant, and $12,500 would be transferred directly to the Internal Revenue Service as a tax withholding. Altogether, the sisters were involved with 192 claims, almost all of which were successful, resulting in a loss of over $11.5 million. The claims were false because the claimants had not suffered discrimination and, in most cases, had not even attempted to farm.
The indictment alleged that Martindale would deposit claim checks into his law firm trust account, issue a check from that trust account to the claimant, and withhold his attorney fee. For both BFDL and HWFR, attorney fees were restricted to $1,500 per claimant. The indictment alleged that the four sisters entered an agreement with Martindale in which they would split the attorney fee. The sisters also demanded and received additional money from the claimants themselves.
The money received from a claim was income that should have been reported on the claimant’s tax return. The sisters and their accountant, Green, admitted that Green provided tax preparation services for the claimants they recruited and that Green falsified the tax returns in order to create a tax refund.
Three of the sisters—Lynda Charles, Rosie Bryant, and Delois Bryant—filed false tax returns of their own and used money from the conspiracy to purchase homes and properties, a Chevrolet van, and a Mercedes G550. The United States is pursuing recovery of those assets, and any additional fraud proceeds used to purchase assets, in the criminal case, as well as in a separate civil forfeiture proceeding.
“These sisters defrauded two programs meant to help those that were discriminated against and instead lined their pockets,” said Christopher J. Altemus Jr., Special Agent in Charge IRS Criminal Investigation, Dallas Field Office. “We want every American to take advantage of the programs, deductions, and credits to which they are entitled to by law; however, no one is entitled to defraud the government. Protecting taxpayer money is a matter IRS-CI takes extremely seriously and today’s sentences reinforce our commitment to the public that we will investigate and prosecute those who steal from American taxpayers.”
“Discrimination is real. The 192 settlement claims submitted by these defendants, requesting millions of dollars, were not,” said United States Attorney Jonathan D. Ross. “Today’s sentences send the message that the United States is committed to prosecuting those who steal from programs designed to provide justice for victims of discrimination, and the Court takes seriously crimes such as these. We will continue to seek prison time for fraudsters who re-victimize those the government sought to make whole.”
Special Agent-in-Charge Dax Roberson from the United States Department of Agriculture, Office of Inspector General (USDA-OIG), said, “I want to thank the United States Attorney’s office, USDA-OIG Special Agents, and our investigative partners for their hard work on this investigation. When fraud is committed to deprive proper recipients of USDA funds, OIG will pursue justice to the fullest extent of the law.”
In addition to their sentences of imprisonment, each defendant was sentenced to two years of supervised release following imprisonment, and the defendants were ordered to pay more than $9,000,000 in restitution.
The investigation is being conducted by USDA-OIG and IRS-CI with assistance from the United States Marshals Service and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Cameron McCree, Bart Dickinson, and Amanda Fields.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Saratoga Springs Man Indicted for Receiving and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Christopher Barry, age 41, of Saratoga Springs, New York, was arrested and arraigned yesterday on an indictment charging receipt and possession of child pornography.
United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
The indictment alleges that between June 2021 and January 2022, Barry received child pornography, and, on February 9, 2023, possessed two phones containing child pornography. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Barry would face at least 5 years and up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Barry was arraigned yesterday in Albany before United States Magistrate Judge Christian F. Hummel and ordered detained pending trial.
HSI is investigating this case. Assistant U.S. Attorney Alexander P. Wentworth-Ping is prosecuting this case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
San Jose Doctor Convicted of Twelve Counts of Illegally Prescribing OpioidsRead the Press Release
SAN JOSE – A federal jury convicted physician Donald Siao of twelve counts of distributing the controlled substances Oxycodone and Hydrocodone outside of the usual course of his professional practice and without a legitimate medical purpose, announced United States Attorney Ismail J. Ramsey, Drug Enforcement Administration (DEA) Special Agent in Charge Brian M. Clark, and U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG) Special Agent in Charge Steven J. Ryan. The verdicts follow a one-week trial before United States District Judge Beth Labson Freeman.
Siao, 58, is a licensed physician who practices family medicine in San Jose. At trial, evidence demonstrated that after identifying Siao in a separate prescription fraud investigation, investigators reviewed a California state database and discovered Siao had written 8,201 prescriptions for controlled substance medications in just the one-year period from May 2016 to May 2017. An investigation followed and resulted in Siao prescribing Oxycodone and Hydrocodone in increasing quantities over seventeen visits by four separate undercover law enforcement agents posing as patients. The undercover agents received prescriptions from Siao despite complaining of only vague pain or discomfort, requesting specific opioids by name, and admitting to sharing the pills with friends and coworkers.
Evidence at trial further established that Siao prescribed dangerous opioids to his patients E.J. and A.J., a mother and son, notwithstanding obvious red flags. Siao continued to prescribe opioids to the mother E.J. after she repeatedly claimed that her pills had been lost or stolen, despite Siao receiving an alert from E.J.’s insurer regarding her opioid prescriptions and despite Siao being advised that E.J. was jailed for selling pills, which was documented in Siao’s medical file for E.J. Similarly, Siao prescribed opioids to the son A.J. after he overdosed twice. Siao continued to prescribe opioids to A.J. after A.J. repeatedly claimed the opioids were lost or stolen and even after he had been flagged by his prior medical provider for drug-seeking behavior, after his mother reported he had stolen her medications, and after A.J.’s mother E.J. fatally overdosed on opioids. These facts were all documented in Siao’s medical file for A.J.
Trial evidence also demonstrated that Siao refused to heed warnings that his prescriptions were dangerous. Evidence showed Siao was aware that DEA closely scrutinized opioid prescriptions and pointed out to one of the undercover officers posing as a patient that a nationwide epidemic was underway in which large numbers of people were addicted to and dying from opioids. Siao nevertheless continued to prescribe opioids to the agents upon their request and with little to no physical examination, sometimes after visits lasting only a few minutes. Law enforcement agents interviewed Siao in November 2018 about his prescribing practices, and Siao admitted he was aware of the California Medical Board’s Guidelines for Prescribing Controlled Substances for Pain. During trial, Siao also admitted that he had been taught about the dangers of addiction and how to identify drug-seeking patients.
The jury convicted Siao of twelve counts of distributing opioids outside the usual course of professional practice and without a legitimate medical purpose, all in violation of 21 U.S.C. § 841(a)(1). Of the 12 counts, four related to the undercover agents and eight related to E.J. and A.J.
U.S. District Judge Freeman scheduled Siao’s sentencing for November 7, 2023. Each of the twelve counts carries a maximum sentence of 20 years in prison. The United States is also seeking forfeiture of Siao’s medical license. The court may also order additional fines, restitution, and supervision upon release from prison as part of any sentence. However, any sentence will be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Amani Floyd and Dan Karmel are prosecuting the case with the assistance of Mimi Lam. The prosecution is the result of an investigation by DEA, HHS-OIG, and the California Department of Justice Division of Medi-Cal Fraud and Elder Abuse.
The case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Resumen Del Viaje A Colombia Del Fiscal General Adjunto Kenneth A. Polite, Jr.Read the Press Release
Del 20 al 23 de junio, el fiscal general adjunto (AAG por sus siglas en inglés) Kenneth A. Polite, Jr., de la División Penal del Departamento de Justicia, viajó a Bogotá, Colombia, para reunirse con sus homólogos colombianos, socios encargados de hacer cumplir la ley, y personal de la División Penal asignado a la Embajada de Estados Unidos en Bogotá para discutir los esfuerzos de aplicación de la ley entre nuestros dos países y avanzar en la relación bilateral con Colombia.
El miércoles, el AAG Polite se reunió con los nueve magistrados de la Sala Penal de la Corte Suprema de Justicia de Colombia. También se reunió con los principales colaboradores de las fuerzas del orden estadounidense que trabajan en Colombia, con el personal de la División de Asuntos Penales destinado en la Embajada de Estados Unidos en Bogotá, y con miembros de la Policía Nacional y de la Fiscalía General de Colombia que prestan apoyo a las investigaciones bilaterales para combatir a las organizaciones delictivas transnacionales. El AAG Polite agradeció a las fuerzas del orden estadounidense y colombianas su estrecha colaboración y su excelente asociación, así como su compromiso para mejorar la seguridad de la región.
AAG Polite con los magistrados de la Sala Penal de la Corte Suprema de Justicia de Colombia.
El jueves, el AAG Polite se reunió con el fiscal general de Colombia, Francisco Barbosa, el ministro de justicia de Colombia, Néstor Iván Osuna Patiño, y el director general de la Policía Nacional de Colombia, William René Salamanca, para hablar de las prioridades comunes en materia de aplicación de la ley, como la desarticulación de organizaciones delictivas transnacionales, la interrupción del flujo de narcóticos ilegales y de la violencia que se le atribuye, la lucha contra el blanqueo de capitales y la incautación y el decomiso de bienes adquiridos con el producto de conductas ilegales. En las reuniones, el AAG Polite se mostró interesado en seguir apoyando la estrecha colaboración entre Estados Unidos y Colombia en materia de justicia bilateral, así como en la forma en que Estados Unidos puede seguir apoyando los esfuerzos de Colombia para mejorar la justicia y la seguridad rurales.
El fiscal de Colombia, Francisco Barbosa y AAG Polite.
El ministro de justicia de Colombia, Néstor Iván Osuna Patiño y AAG Polite.
El director general de la Policía Nacional de Colombia William René Salamanca y AAG Polite.
“Nuestra relación con Colombia en materia de aplicación de la ley es un modelo para la region,” declaró el AAG Polite. “Agradecemos a Colombia sus muchos años de colaboración con el Departamento de Justicia y con las fuerzas del orden estadounidense en materia de justicia. Nos comprometemos a seguir colaborando estrechamente para combatir la delincuencia organizada transnacional, detener el flujo de estupefacientes hacia Estados Unidos e interrumpir el flujo de financiación ilícita.”
Durante la visita, AAG Polite también visitó una Casa de Justicia, que forma parte de un importante programa de acceso a la justicia que tiene por objetivo ofrecer una amplia gama de servicios judiciales a los ciudadanos colombianos. AAG Polite habló sobre la importancia de las iniciativas de acceso a la justicia y de cómo Colombia y Estados Unidos pueden aprender el uno del otro en esta materia.
AAG Polite visita una Casa de Justicia.
AAG Polite sigue comprometido con la continua cooperación entre los Estados Unidos y Colombia y nuestros homólogos judiciales y policiales en la región.
AAG Polite a Plaza de Bolívar.
Recidivist Fraudster Charged with Fraud and Identity Theft in Connection with Real Estate Investment Ponzi SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging WILSON BASTON, a/k/a “Chanon Gordon,” a/k/a “William Baston,” a/k/a “Jackie Wilson,” with wire fraud, securities fraud, and aggravated identity theft in connection with a scheme to defraud investors in a series of purported real estate investments managed by BASTON and the entity Gordon Management Group (“GMG”). BASTON was arrested this morning in New York and was presented in federal court this afternoon.
U.S. Attorney Damian Williams said: “As alleged, Wilson Baston used a fake name to conceal his prior convictions and to solicit more than $10 million as part of a series of brazen real estate scams against innocent New Yorkers. Today’s arrest demonstrates this Office’s commitment to stopping recidivist fraudsters like Baston and to seeking justice for victims of financial frauds.”
FBI Assistant Director in Charge Michael J. Driscoll said: “As alleged, the defendant ran a fraudulent scheme which used funds intended for real estate investment to repay other investors or use on lavish personal expenses. This fraud, like many Ponzi schemes, guaranteed large returns on investment, but proved too good to be true. The FBI will continue to ensure that fraudsters are held responsible for their scams in the criminal justice system.”
According to the allegations in the Indictment unsealed in Manhattan federal court:[1]
Between 2018 and 2023, WILSON BASTON engaged in a scheme to defraud investors in a series of purported real estate investments managed by GMG. In order to defraud his investors, BASTON falsely represented that he would use investor money to fund real estate transactions in the New York City area. However, in truth and in fact, BASTON operated GMG as a Ponzi scheme. Rather than use investment contributions to fund real estate transactions as he promised, BASTON instead used funds from new and existing investors to repay money that was owed to other investors. BASTON also misappropriated investor funds by spending them on personal expenses such as payments to a luxury carmaker.
BASTON typically made false promises of guaranteed short-term, high rates of return on investments in real estate deals, with additional guarantees on the principal investment. On many occasions, BASTON initially repaid both the principal and interest as promised to garner trust with his investors and entice them to continue investing in GMG — and in many cases, to invest additional, larger sums of money. BASTON then ceased paying the victims the promised interest and did not return the principal on the deals they had invested in.
Eventually, when victims began to complain to BASTON about not getting their money as promised, BASTON provided increasingly outlandish excuses and avoided responding to their inquiries. At times, BASTON also gave false excuses and explanations as to why the investors had not been paid.
In some instances, BASTON paid investors with the funds he received from existing investors, or the funds of new investors, rather than from any purported investments, in a Ponzi-like fashion. BASTON also used certain investment funds for personal expenditures. Further, in order to avoid detection and falsely instill confidence in his investors, BASTON, who was previously convicted in federal court of 17 counts of mail and wire fraud for operating a similar fraudulent investment scheme, hid his true identity and the fact of his prior conviction from his investors by falsely representing that his name was “Chanon Gordon.”
* * *
WILSON BASTON, 62, of Brooklyn, New York, is charged with one count of wire fraud and one count of securities fraud, each of which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a two-year mandatory sentence in addition to any sentence imposed.
The statutory maximum and mandatory penalties in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI on the investigation. Mr. Williams further thanked the U.S. Securities and Exchange Commission for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Alex Rossmiller and Nicholas Folly are in charge of the prosecution.
The charges in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Baston IndictmentReadout of Assistant Attorney General Kenneth A. Polite, Jr.’s Trip to ColombiaRead the Press Release
From June 20 to 23, Assistant Attorney General (AAG) Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division traveled to Bogotá, Colombia, to meet with Colombian counterparts, law enforcement partners, and Criminal Division personnel assigned to U.S. Embassy Bogotá to discuss law enforcement efforts between the two countries and advance the bilateral relationship with Colombia.
On Wednesday, AAG Polite met with the magistrates of the Criminal Chamber of the Colombian Supreme Court. He also met with key U.S. law enforcement partners working in Colombia, Criminal Division personnel assigned to the U.S. Embassy Bogotá, and members of the Colombian National Police and Colombian Attorney General’s Office who provide support to bilateral investigations to combat transnational organized crime groups. AAG Polite thanked U.S. and Colombian law enforcement for their close collaboration and outstanding partnership and for their commitment to improving the security of the region.
AAG Polite with the Magistrates of the Criminal Chamber of the Colombian Supreme Court.
On Thursday, AAG Polite met with Colombian Attorney General Francisco Barbosa, Colombian Minister of Justice Néstor Iván Osuna Patiño, and Colombian National Police Director General William René Salamanca to discuss shared law enforcement priorities, including dismantling transnational criminal organizations, disrupting the flow of illegal narcotics and the violence attributed to it, combatting money laundering, and seizing and forfeiting assets purchased with proceeds of illegal conduct. In his meetings, AAG Polite looked to bolster the close collaboration between the United States and Colombia on bilateral justice matters, and discussed how the United States can further support Colombia’s efforts to improve rural justice and security.
Colombian Attorney General Francisco Barbosa and AAG Polite.
Colombian Minister of Justice Néstor Iván Osuna Patiño and AAG Polite.
Colombian National Police Director General William René Salamanca and AAG Polite.
“Our law enforcement relationship with Colombia is a model for the region,” said AAG Polite. “We thank Colombia for their many years of partnership with the Department of Justice and U.S. law enforcement on justice matters. We are committed to continuing to work closely together to combat transnational organized crime, stop the flow of narcotics to the United States, and disrupt the flow of illicit financing.”
During the visit, AAG Polite also visited a Justice House, an important access-to-justice program that seeks to bring a wide range of justice services to Colombian citizens. AAG Polite spoke about the importance of access-to-justice initiatives and how Colombia and the United States can learn from one another on this matter.
AAG Polite’s visit to a Justice House.
AAG Polite remains committed to the continued cooperation between the United States and Colombia and our judicial and law enforcement counterparts in the region.
AAG Polite overlooking Plaza de Bolívar.
Quincy Woman Sentenced to 60 Months in Federal Prison for Distribution of MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Illinois woman, Christina Harbison, 41, of the 600 block of Chestnut was sentenced today by U.S. District Judge Colleen Lawless to sixty months in prison, followed by four years of supervised release for distributing 5 grams or more of methamphetamine.
Harbison was indicted in December of 2019 and pleaded guilty in January of 2023. Evidence at the sentencing hearing showed that the drug transaction at issue occurred on March 11, 2019. After initially being released on bond, Harbison’s bond was subsequently revoked, and she has been in the custody of the United States Marshal since October 31, 2022.
The statutory penalties for distribution of 5 grams or more of methamphetamine are not less than five and up to forty years in prison, not more than a $10,000,000 fine, and not less than four years and up to life of supervised release.
The West Central Illinois Task Force and the Quincy Police Department investigated the case. Assistant United States Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Harbison 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.
Quincy Woman Sentenced to 60 Months in Federal Prison for Distribution of MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Illinois woman, Christina Harbison, 41, of the 600 block of Chestnut was sentenced today by U.S. District Judge Colleen Lawless to sixty months in prison, followed by four years of supervised release for distributing 5 grams or more of methamphetamine.
Harbison was indicted in December of 2019 and pleaded guilty in January of 2023. Evidence at the sentencing hearing showed that the drug transaction at issue occurred on March 11, 2019. After initially being released on bond, Harbison’s bond was subsequently revoked, and she has been in the custody of the United States Marshal since October 31, 2022.
The statutory penalties for distribution of 5 grams or more of methamphetamine are not less than five and up to forty years in prison, not more than a $10,000,000 fine, and not less than four years and up to life of supervised release.
The West Central Illinois Task Force and the Quincy Police Department investigated the case. Assistant United States Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Harbison 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.
Prolific Human Smuggler Extradited to United States from HondurasRead the Press Release
TUCSON, Ariz. – A Honduran national has been extradited from Honduras to the United States to face charges related to human smuggling and money laundering.
Maria Mendoza-Mendoza, aka “La Guera,” will make her initial court appearance today in the U.S. District Court for the District of Arizona in Tucson.
According to court documents, Mendoza-Mendoza is a high-level, Honduran-based human smuggling coordinator who, along with co-conspirators throughout Central America, Mexico, and the United States, was responsible for facilitating the illegal entry, transport, and harboring of numerous undocumented non-citizens (UNCs). Through phone conversations captured on wire intercepts, Mendoza-Mendoza is alleged to have directed the movement of UNCs and the collection of their smuggling fees. She also is alleged to have exercised extensive control over co-conspirators. The smuggling organization is alleged to have utilized numerous funnel accounts to collect millions of dollars in smuggling fees deposited across the United States and withdrawn primarily in the Phoenix, Arizona area.
Mendoza-Mendoza is charged in an indictment with Conspiracy to Transport and Harbor Illegal Aliens for Profit and Transportation of and Harboring Illegal Aliens for Profit, each of which carries a maximum sentence of 10 years in prison and a maximum fine of $250,000, and Conspiracy to Commit Money Laundering, which carries a maximum sentence of 20 years in prison and a maximum fine of $500,000 or twice the value of the property involved in the transaction.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
This extradition resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the District of Arizona is part of JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security , to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime.
Homeland Security Investigations – Sells Office conducted the investigation in this case, with significant assistance from the United States Border Patrol’s Tucson Sector, and numerous state and local law enforcement agencies throughout the country. The United States Marshals Service assisted with the extradition efforts. The Justice Department’s Office of International Affairs worked with law enforcement partners in Honduras to secure the arrest and extradition of Mendoza-Mendoza. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
The Justice Department’s Office of International Affairs worked with law enforcement partners in Honduras to secure the arrest and extradition of Mendoza-Mendoza.
A video recording of the press conference held to announce Mendoza-Mendoza’s extradition can be found here.
CASE NUMBER: CR-18-0078-TUC-RCC-MAA
RELEASE NUMBER: 2023-097_Mendoza-Mendoza# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Portsmouth Man Pleads Guilty to “Zombie” Drug OffenseRead the Press Release
NORFOLK, Va. – A Portsmouth man pleaded guilty today to possession with intent to distribute para-flourofentanyl mixed with Xylazine, a combination known as the Zombie drug, as well as being a felon in possession of a firearm.
According to court documents, Ali L. Scott, Jr., 32, was distributing controlled substances in Portsmouth. On November 10, 2022, Portsmouth Police and the Bureau of Alcohol, Tobacco, and Firearms executed arrest warrants on Scott while he was a passenger in a vehicle. The police discovered a firearm near him and a backpack with 23.76 grams of a mixture containing para-flurofentanyl and Xylazine. Xylazine, also known as “tranq,” “tranq dope” or “zombie drug,” is a horse tranquilizer used by the veterinary industry. Mixing it into fentanyl increases overdose deaths and severe medical complications — including terrible flesh wounds causing rotting of the skin and leading to amputation. Xylazine also makes it much harder to revive people after fentanyl overdoses, and the chemical adds another layer of intense addiction and cravings.
Scott is scheduled to be sentenced on December 1, 2023. He faces a maximum penalty of 35 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Craig Kailimai, Special Agent in Charge of the ATF’s Washington Field Division; Stephen Jenkins, Chief of Portsmouth Police; and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney.
Assistant U.S. Attorney Kevin Comstock is prosecuting the case.
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-76.
Philadelphia Man Arrested for Distribution of Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Rockylane Lewis, aka “Rizzo,” 33, of Philadelphia, Pennsylvania, has been charged with the distribution of cocaine base. Lewis was arrested Wednesday afternoon in Rutland, Vermont. Lewis appeared today for his initial appearance before United States Magistrate Judge Kevin J. Doyle and was ordered detained pending trial.
According to court records, law enforcement has been investigating Lewis’ drug trafficking activities in Rutland County since December 2022. In late March of 2023, law enforcement conducted a controlled purchase of cocaine base from Lewis. On June 21, 2023, law enforcement executed a search warrant in Rutland, during which Lewis was encountered and arrested. During the search of the apartment in which Lewis was located, law enforcement seized a black 9mm Ruger SR9c handgun, over 55 grams of bulk fentanyl, and a gram of cocaine base.
The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only and that Lewis remains presumed innocent until and unless he is convicted of a crime. Lewis faces a maximum sentence of 20 years of imprisonment if convicted. The actual sentence would be determined with reference to the Federal Sentencing Guidelines.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of Homeland Security Investigations and the Rutland City Police Department. He also thanked the Vermont State Police Narcotics Investigation Unit, the Ludlow Police Department, the Windsor County Sheriff’s Office, the Rutland Office of Vermont Probation and Parole, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their vital assistance.
HSI New England Special Agent in Charge Michael Krol stated, “We at Homeland Security Investigations prioritize public safety above all else and work closely with our federal, state and local partners to achieve that goal. This investigation demonstrates that law enforcement is best able to serve the community when we work together. HSI would particularly like to recognize the Rutland City Police Department for their efforts in this investigation.”
The prosecutors are Assistant United States Attorneys Jason Turner and Jonathan Ophardt. Lewis is represented by Jordana Levine, Esq.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn .
Pennsylvania Man Pleads Guilty to Bank Robbery ConspiracyRead the Press Release
ALBANY, NEW YORK – Michael Brown, Jr., a/k/a “Russ,” a/k/a “Doc Grimson,” age 41, of Exton, Pennsylvania, pled guilty today to conspiring to commit bank robbery. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Brown admitted that between November 14 and November 27, 2022, he agreed to and planned to commit an armed bank robbery at a bank branch in Johnstown, New York, with two co-conspirators, Luke Kenna a/k/a “Lt.,” and Brian Tierney a/k/a “Wodanaz.” Kenna, as part of that conspiracy, conducted surveillance of the bank and purchased items, including weapons, to commit the robbery, and Brown drove to New York to conduct surveillance of the bank with Kenna in November.
The charges remain pending against Kenna and Tierney, both of whom have been arrested and detained pending a trial currently scheduled for August 7, 2023. The charges in their indictment are merely accusations. They are presumed innocent unless and until proven guilty.
Brown has been in custody since his arrest on December 14, 2022. Sentencing is scheduled for November 3, 2023, before Chief United States District Judge Brenda K. Sannes, when Brown faces a maximum term of 5 years in prison, a fine of up to $250,000, and a post-imprisonment term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI Albany Field Office’s Joint Terrorism Task Force (JTTF), which includes FBI Special Agents, and federal, state, and local investigators, including from the New York State Police. The FBI’s Philadelphia Field Office, the FBI’s Richmond Field Office, and New York State Police Special Investigations Unit also provided assistance. Assistant U.S. Attorney Alexander Wentworth-Ping is prosecuting the case.
Oronogo Man Sentenced to 40 Years for Kidnapping Webb City WomanRead the Press Release
SPRINGFIELD, Mo. – A southwest Missouri man was sentenced in federal court today for kidnapping a Webb City, Mo., woman and threatening to kill her and her family unless she recanted her testimony in his state criminal case.
Jeffrey Marsh, 35, of Oronogo, Mo., was sentenced by U.S. Chief District Judge Beth Phillips to 40 years in federal prison without parole. Co-defendant Zaqouri Traves Archer, 34, of Joplin, Mo., was sentenced to eight in federal prison without parole.
On July 7, 2022, Marsh pleaded guilty to one count of conspiracy to commit kidnapping, one count of kidnapping, one count of being a felon in possession of a firearm, and one count of stalking. Archer pleaded guilty on July 21, 2021, to his role in the kidnapping conspiracy and to one count of being a felon in possession of a firearm.
Marsh and Archer admitted they kidnapped a victim identified in court documents as “N.J.” and transported her across states lines from Kansas to Missouri.
N.J. was staying at a friend’s residence in Crawford County, Kan., because she was trying to hide from Marsh, her ex-boyfriend. Marsh was angry with her because she had reported him as a suspect when her Ruger handgun was stolen. Officers with the Oronogo Police Department had executed a search warrant on Marsh’s residence on Jan. 26, 2020. They located N.J.’s stolen firearm in Marsh’s bedroom, as well as other firearms, and stolen property. Marsh was charged with receiving stolen property and unlawful possession of a firearm in the Jasper County Circuit Court.
On Feb. 2, 2020, N.J. watched the Super Bowl at her friend’s residence and then walked out to her car to go to work. When she opened the front passenger door and placed her purse on the seat, Marsh grabbed her and told her to get into the vehicle. She began screaming and fell to the ground in an attempt to get her firearm out of her purse. She felt the barrel of a firearm placed against the back of her head, and Marsh told her to stop screaming or he would shoot her in the head. In the meantime, Archer – who, like Marsh, was dressed in all black – arrived. Archer had a Taser with him. N.J. was forced into the front passenger seat, with Marsh in the driver’s seat and Archer in the back passenger seat. Archer placed duct tape over N.J.’s eyes and face.
At one point as they were driving around and making several stops, Marsh shoved the barrel of his Kimber .45-caliber pistol in N.J.’s mouth and pulled the trigger. The gun made a click, but did not fire. After the click, Marsh chambered a round and shot it outside the vehicle towards a body of water. During the kidnapping, Marsh struck N.J. in her left jaw and told her she was going to recant her statements to the police.
Archer eventually left, and Marsh took N.J. to her apartment in Webb City in his vehicle. Marsh continued to threaten, abuse, and assault N.J. Marsh held N.J. at gunpoint in her apartment and she was unable to leave that night. Marsh told N.J. to recant her earlier statement or her, her kids, and her whole family would die. Marsh told N.J. that she needed to make his weapon charges go away or her kids would die. N.J. later told investigators that she felt in fear of the death of, or serious bodily injury to herself,
In the morning hours of Feb. 3, 2020, Marsh took N.J. back to her vehicle so she could go to the Oronogo Police Department to recant her statement. Once at the Oronogo Police Department, N.J. tried to recant her statement, but then disclosed her kidnapping. Later that day, the Jasper County Sheriff’s Department located N.J.’s firearm and Marsh’s firearm taped to the bottom of a dresser with duct tape.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Marsh has two prior felony convictions for burglary, three prior felony convictions theft, and prior felony convictions for tampering with a motor vehicle, resisting arrest, and possession of a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Jasper County, Mo., Sheriff’s Department, the Crawford County, Kan., Sheriff’s Office, and the Oronogo, Mo., Police Department.
Northern Nevada Resident Convicted of Murdering Pregnant Indigenous Woman on ReservationRead the Press Release
RENO, Nev. — A jury convicted a Northern Nevada man yesterday for murdering a pregnant indigenous woman on the Pyramid Lake Indian Reservation in December 2020.
According to court documents and evidence presented at trial, Michael Burciaga (36) stabbed his pregnant girlfriend, a registered member of the Pyramid Lake Paiute Tribe, multiple times, causing her death and the death of their unborn child. Shortly after midnight on December 15, 2020, Pyramid Lake Police Department officers responded to an emergency call from the victim’s 15-year old daughter at the victim’s home located on the Pyramid Lake reservation in Nixon, located in Washoe County.
Burciaga was convicted of Murder in the First Degree within Indian Country, a violation of the Protection of Unborn Children Act, and Domestic Assault by a Habitual Offender Within Indian Country. He is scheduled to be sentenced by Chief United States District Judge Miranda M. Du on September 25, 2023, and he faces a statutory minimum sentence of life imprisonment. The sentencing will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI and Pyramid Lake Police Department investigated the case. Assistant United States Attorneys Penelope Brady, Megan Rachow, and Richard Casper are prosecuting the case.
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North Carolina CFO Sentenced to 18 Months in Prison in Multi-Million Tax Fraud CaseRead the Press Release
WILMINGTON, N.C. – Christopher Scott Harrison, 56, of Fayetteville, N.C., was sentenced today to 18 months in prison, followed by one year of supervised release to include home confinement, for tax fraud. On January 24, Harrison pled guilty willfully filing a false tax return with respect to nearly $25 million in unreported income he paid to himself from his company. In addition to his prison sentence, Harrison was ordered to pay more than $4.6 million in additional restitution.
“As noted by the judge at sentencing, this businessman used a sophisticated scheme over many years to knowingly divert corporate proceeds to support his lifestyle by claiming fancy jewelry, such as a Rolex watch, a Cartier diamond necklace and a Tiffany bracelet were business expenses,” said U.S. Attorney Michael Easley. “We will not allow wealthy tax cheats to line their pockets at the expense of hardworking American taxpayers.”
According to the criminal information and evidence summarized in Court, Harrison became the CFO and majority owner of an insurance and Human Resources benefits business, Ebenconcepts. Beginning at least as early as 2012, Harrison began to lavishly spend company funds for his own benefit, for example purchasing a watch for approximately $145,000 and spending approximately $300,000 of company funds for a swimming pool at his residence. As these expenditures came to light, Harrison filed for Chapter 11 bankruptcy. During the bankruptcy proceedings, an accounting firm retained by the Bankruptcy Trustee discovered almost $25 million in personal expenditures attributable to Harrison reported as business expenses between tax years 2012 and 2018. Harrison filed false personal returns over that period, which failed to report the income, leading to almost $6 million in uncollected federal income taxes.
“The license to run a business is not a license to avoid paying taxes,” said Internal Revenue Service Criminal Investigation Assistant Special Agent in Charge Brian Thomas, of Charlotte’s Field Office. “Harrison’s misconduct - hiding income and having his business pay his purely personal expenses - cheated all Americans, since we all pay our fair share for the government services and protections that we enjoy.”
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. Internal Revenue Service (IRS) Criminal Investigation led the investigation, and Assistant U.S. Attorney David G. Beraka 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. 5:22-cr-00309-M.
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Nigerian National Sentenced to 82 Months in Prison for International Scheme That Defrauded Elderly U.S. VictimsRead the Press Release
A Nigerian national, who was previously extradited to the United States from the United Kingdom, was sentenced to 82 months in prison on June 21, 2023 for his role in a transnational inheritance fraud scheme.
According to court documents, Emmanuel Samuel, 39, was part of a group of fraudsters that sent personalized letters to elderly victims in the United States, falsely claiming that the sender was a representative of a bank in Spain and that the recipient was entitled to receive a multimillion-dollar inheritance left for the recipient by a family member who had died years before in Portugal. Victims were told that before they could receive their purported inheritance, they were required to send money for delivery fees, taxes, and payments to avoid questioning from government authorities. Victims sent money to the defendants through a complex web of U.S.-based former victims. The defendants convinced these former victims to receive money from new victims and then forward the fraud proceeds to others.
“The Department of Justice’s Consumer Protection Branch will continue to pursue, prosecute, and bring to justice transnational criminals responsible for defrauding U.S. consumers, wherever they are located,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Working together, U.S. and foreign law enforcement can and will thwart schemes such as the one charged in this case and prevent further loss to American victims.”
“The U.S. Postal Inspection Service (USPIS) has a long tradition of protecting American citizens from these types of schemes and bringing those responsible to justice,” said Postal Inspector in Charge Juan A. Vargas of the USPIS Miami Division. “This result is a testament to the dedicated partnership between the Department of Justice’s Consumer Protection Branch, Homeland Security Investigations (HSI), and the USPIS, to protect our citizens from these scams.”
“In my law enforcement career, I’ve investigated and arrested countless criminals involved in abhorrent activity but nothing measures to supporting HSI agents as they dismantle organizations in foreign countries whose sole purpose is targeting unsuspecting elderly victims to steal their money,” said Special Agent in Charge Scott Brown of HSI Arizona. “I thank every agent that worked tirelessly to ensure these criminals are brought to justice for their actions – families are forever impacted all because of these felons' actions as they targeted the elderly causing pain and financial ruin.”
U.S. District Judge Kathleen M. Williams sentenced Samuel on June 21, 2023 in Miami. She also ordered Samuel to make restitution payments to victims of his offenses.
Two additional co-defendants, Jonathan Abraham and Jerry Ozor, previously were convicted in the case. They are scheduled to be sentenced by Judge Williams in the coming months.
The Consumer Protection Branch, USPIS, and HSI are investigating the case.
Senior Trial Attorney Phil Toomajian and Trial Attorneys Josh Rothman and Brianna Gardner of the Justice Department’s Consumer Protection Branch are prosecuting the case. The Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, Europol, and authorities from the United Kingdom, Spain, and Portugal all provided critical assistance.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
Nashua Man Pleads Guilty to Transporting Stolen Apple Products Worth $2 MillionRead the Press Release
CONCORD – A Nashua man pleaded guilty in federal court to transporting stolen property, U.S. Attorney Jane E. Young announces.
Guangwei “William” Wu, 30, pleaded guilty to the interstate transportation of stolen property. U.S. District Court Judge Samantha D. Elliott scheduled sentencing for October 4, 2023. Wu was charged on June 1, 2023.
The defendant owned and operated a transshipping company in Manchester called Hai Xing Qiao. In fall 2022, the victim company purchased Apple products, including iPads, iPhones, Apple Watches, and Macbooks, and then hired Hai Xing Qiao to forward the products onto Hong Kong. However, Yongfu Huo, another Hong Kong-based company, paid a bribe of over $700,000 to the defendant to have the products shipped to Yongfu Huo instead. To cover up his tracks, the defendant claimed that law enforcement had seized the Apple products and sent the victim company a false document titled “Disclaimer of Ownership” purportedly issued by the U.S. Postal Inspection Service. The defendant also forged the signature of a federal agent on the document.
The charging statute provides a sentence of no greater than 10 years in prison, 3 years of supervised release, a fine of $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. As part of the plea agreement, the defendant is repaying $2 million in restitution to the victim.
The Federal Bureau of Investigation and U.S. Postal Inspection Service led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
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Myrtle Beach Woman Sentenced to Federal Prison for Tax Fraud and Theft of Veterans Affairs BenefitsRead the Press Release
FLORENCE, SOUTH CAROLINA — Janice A. Livingston, 30, of Myrtle Beach, was sentenced to nearly 2 years in federal prison after pleading guilty to making and presenting a false claim to the IRS and theft of government property.
Evidence presented to the Court showed that in 2020, Livingston submitted three false claims to the IRS for tax credit entitlements in the amount of $1,126,553.68 and submitted false documentation to receive individual unemployability benefits from the Department of Veterans Affairs. Livingston also made multiple false representations in applying for two Economic Injury Disaster Loans, which the Small Business Administration could provide to business owners negatively affected by the COVID-19 pandemic.
United States District Judge Joseph Dawson, III sentenced Livingston to 20 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Livingston was ordered to pay $183,406.01 in restitution.
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.
This case was investigated by the IRS and the Department of Veterans Affairs. Assistant U.S. Attorney Lauren Hummel is prosecuting the case.
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Mobile Health Application Developer Ordered to Modify Business Practices to Protect the Privacy of Consumers’ Personal Information and to Pay $100,000 in Civil PenaltiesRead the Press Release
The Department of Justice, together with the Federal Trade Commission (FTC), today announced that the government has obtained substantial injunctive relief protecting consumer privacy against Easy Healthcare Corporation (Easy Healthcare), an Illinois corporation located in Burr Ridge, Illinois, pursuant to a stipulated order entered by a federal court today. The department also will collect $100,000 in civil penalties from the defendants, an amount based upon the defendant’s ability to pay.
In a complaint filed in the U.S. District Court for the Northern District of Illinois, the United States alleged that Easy Healthcare violated Section 5 of the FTC Act, 15 U.S.C. § 45, and the Health Breach Notification Rule (HBNR), 16 C.F.R. § 318, in connection with its ovulation and period tracking mobile application. The complaint alleges that Easy Healthcare engaged in deceptive and unfair acts by: (1) sharing persistent identifiers of consumers (unique markers that allow the identification of consumers’ online activity or mobile devices) without user notice or consent and sharing sensitive personal health information with certain third-party companies in violation of its privacy promises; (2) failing to disclose to users how those third-parties could use such personal information, including for third-party advertising; and (3) failing to take reasonable measures to assess and address the privacy and data security risks created by incorporating third-party software into its application. The complaint also alleges that Easy Healthcare violated the HBNR through its ongoing failure to notify its users, the FTC, and the media of the unauthorized disclosures of user information.
The order entered by the court today requires Easy Healthcare to implement a comprehensive privacy and data security program with safeguards to protect consumer data. The order also requires Easy Healthcare to hire an independent third-party to regularly assess its compliance with the privacy program for a period of 20 years. Easy Healthcare also is enjoined from sharing health information with third-parties for advertising purposes, from sharing health information with third-parties for other purposes without obtaining users’ affirmative express consent, and from making misrepresentations about Easy Healthcare’s privacy practices. In addition, Easy Healthcare is required to comply with the HBNR’s notification provisions in any future breach of Security.
“The Department of Justice will not hesitate to pursue and hold accountable companies that fail to protect consumers’ privacy by sharing consumers’ private medical and other personal information and failing to notify consumers when such information has been made available to third-parties,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting the public from companies that do not safeguard the privacy of consumers’ medical and other personal data as required by law.”
“Premom broke its promises and compromised consumers’ privacy,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “We will vigorously enforce the Health Breach Notification Rule to defend consumer's health data from exploitation. Companies collecting this information should be aware that the FTC will not tolerate health privacy abuses.”
This matter is being handled by Rachel Baron and Claude Scott of the Civil Division’s Consumer Protection Branch and David Walko and Ronnie Solomon of the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at www.FTC.gov.
Maryland Man Pleads Guilty to Evading Payment of at Least $2.8 Million in Taxes Owed to the United StatesRead the Press Release
Baltimore, Maryland – John H. Worthington, age 60, of Owings Mills, Maryland, pleaded guilty yesterday to federal charges for willful failure to account for and pay over employment taxes and for filing a false personal tax return. Worthington admitted that he evaded payment on taxes due and owing to the United States of at least $2,813,348.94.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to court documents and statements made in court, Worthington owned and operated The Grill at Harryman House restaurant since 1995. As part of managing the restaurant, Worthington issued Forms W-2 to his employees and withheld federal income taxes and Social Security and Medicare (“FICA”) taxes from their wages. Worthington admitted that from 2010 through 2021, he did not file with the IRS the required Employer’s Quarterly Federal Tax Returns (Forms 941) reporting these employment taxes and did not pay the withholdings over to the IRS. As detailed in his plea agreement, instead of meeting his tax obligations, Worthington used funds from his business to pay other creditors and for a variety of personal expenses, including golf club membership dues, season tickets to the Baltimore Orioles, international vacations, and salaries for himself and his wife. In total, Worthington did not report or pay approximately $2,813,348.94 in employment taxes due and owing to the IRS.
Additionally, Worthington filed a joint 2016 personal tax return (Form 1040) that falsely claimed $24,207 in federal income tax withholdings from his own wages from the restaurant, which he knew had not been paid to the IRS. This resulted in a $9,096 refund to which he was not entitled. Had Worthington accurately reported $0 in withholdings for that year, he would have owed $15,111.
According to his plea agreement, Worthington also failed to timely file his personal income taxes for tax years 2017 through 2021, despite having received wages and compensation from the restaurant. Worthington also failed to timely file corporate tax returns for tax years 2016 through 2021, even though the corporation was active and generated gross receipts or sales of more than $15 million during that time frame.
Worthington faces a maximum penalty of five years in prison for willfully failing to account for and pay over the employment taxes and three years in prison for filing a false tax return. He also faces a period of supervised release, monetary penalties, and restitution. U.S. District Judge Julie R. Rubin has scheduled sentencing for September 13, 2023, at 2:00 p.m.
U.S. Attorney Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg commended the IRS-CI for its work in the investigation and thanked Assistant U.S. Attorney Sean R. Delaney and Assistant Chief Jorge Almonte and Trial Attorney Matthew L. Cofer of the Justice Department’s Tax Division, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Leader of Drug Trafficking Gang 65 INC. Found GuiltyRead the Press Release
SAN JUAN, Puerto Rico – A federal jury convicted Joseph E. Pérez-González, a/k/a “Peca/Stripper” for conspiracy to possess with intent to distribute, possession with intent to distribute controlled substances, and firearms violations. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Puerto Rico Police Bureau (PRPB), San Juan and Carolina Strike Forces, and the United States Marshals Service investigated the case.
According to court documents and evidence presented at trial, Joseph E. Pérez-González, a/k/a “Peca/Stripper” was the leader of a drug trafficking organization called 65 Inc. which distributed cocaine base (commonly known as “crack”), heroin, cocaine, marihuana, Oxycodone (Percocet), and Alprazolam (Xanax) in the Jardines del Paraíso, Jardines de Monte Hatillo, Las Dalias, Monte Park, Jardines de Campo Rico, San Martín, Jardines de Country Club, Ernesto Ramos Antonini, La Esmeralda, and Nuestra Señora de Covadonga Public Housing Projects, Los Claveles Condominium, and Buen Consejo Ward between the years 2015 to 2021.
65 Inc. used violence (including murders) and intimidation to maintain control of the Public Housing Projects to control the drug trafficking in those areas. 65 Inc. distributed hundreds of kilograms of crack, cocaine, marihuana and heroin during the course of the conspiracy.
Of the 55 co-defendants, 8 remain fugitives, 2 were arrested in May 2023, and the rest pleaded guilty.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico; and Christopher Robinson, Special Agent in Charge for ATF Miami Field Division made the announcement.
Assistant U.S. Attorneys Pedro Casablanca and Joseph Russell prosecuted the case.
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Lawrence Man Sentenced to More Than 12 Years in Prison for Fentanyl TraffickingRead the Press Release
BOSTON – A Lawrence man has been sentenced in federal court in Boston for fentanyl trafficking.
Manuel Santana Vizcaino, a/k/a “Dave,” 38, was sentenced on June 21, 2023 by U.S. Senior District Court Judge Mark L. Wolf to 151 months in prison and four years of supervised release. On Feb. 11, 2023, Santana Vizcaino was convicted by a federal jury of distribution and possession with intent to distribute 40 grams or more of fentanyl.
In September 2020, Manuel Santana Vizcaino arranged for the distribution of more than a half kilogram of fentanyl to an individual. Specifically, on Sept. 3, 2020, Manuel Santana Vizcaino provided the individual with approximately 270 grams of fentanyl concealed inside a guava juice box at his apartment in Lawrence. Later, on Sept. 14, 2020, while outside the United States in the Dominican Republic, Manuel Santana Vizcaino arranged for his brother, Santo Santana Vizcaino, to sell the individual another 250 grams of fentanyl. Manuel Santana Vizcaino was arrested in December 2020 at Logan Airport upon returning from the Dominican Republic. Following a search of Manuel Santana Vizcaino’s apartment, an additional two kilograms of fentanyl was seized.
In May 2022, Santo Santana Vizcaino was sentenced to 30 months in prison and three years of supervised release after previously pleading guilty to the same charges in January 2022.
Acting United States Attorney Joshua S. Levy and Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Drug Enforcement Administration; Customs and Border Protection; Homeland Security Investigations in New England; Massachusetts State Police; and the Essex County Sheriff’s Department. Assistant U.S. Attorneys Philip C. Cheng and Lucy Sun of Levy’s Organized Crime & Gang Unit prosecuted the case.
Knocking on Doors Helps Build Safer CommunitiesRead the Press Release
MIAMI – Personnel from the Law Enforcement Coordination and Community Outreach Section (LEC/COS) of the U.S. Attorney’s Office for the Southern District of Florida recently joined numerous community partners for a Walking One Stop to assist residents of Miami’s Liberty City.
Walking One Stops originated in Miami-Dade County and partner community stakeholders with law enforcement to bring social and economic resources to neighborhoods that have experienced gun or gang violence. This particular area in Liberty City already has seen at least one homicide this year. Law enforcement strives to have a more visible presence in these areas so residents will know that police are there to serve.
During this Walking One Stop, a large group of community partners and police officers broke into several groups to cover a large apartment complex. They knocked on doors and reached more than 30 families.
“Thank you for coming out,” said a 74-year-old resident. “I want my medical equipment fixed and I need my oxygen; that’s why I’m breathing like this.”
She was assured that someone would contact her within 48 hours.
“It’s about doing what we can to make a difference in peoples’ lives,” said Law Enforcement Coordination Specialist Mark McKinney, LEC/COS. “Some of our most vulnerable residents can go unnoticed and not get the help they need. But these walks lead to tangible results.”
Results like employment. At a previous Walking One Stop, many residents wanted help finding jobs. Walking One Stop partners were able to get nearly half of them employed. At this most recent one, a Mobile Career Assistance Center was parked down the block from the apartments to help job seekers.
It comes down to trust and building relationships. Community stakeholders hope that by frequently hosting these walks, residents will feel empowered to make their communities better.
An officer recounted a previous walk in which a young resident opened the door but didn’t want to be seen talking to police. However, he told officers he would reach out if they left a contact card.
“It’s a partnership between the community and law enforcement,” said Community Outreach Specialist and former police officer Corey Mackay, LEC/COS. “Being more approachable and having positive contact with the community builds trust and helps save lives.”
In addition to local partners, law enforcement personnel from both Philadelphia and the country of Denmark participated in the walk to learn how to implement Walking One Stops in their communities.
“We’re gathering information and getting inspired to learn techniques and methods to reduce gang violence throughout Denmark,” said a Danish police officer following his first walk.
Walking One Stops are a testament to the power of outreach. They are an example of what can happen when law enforcement, community stakeholders, and residents come together.
Law Enforcement Coordination Specialist Mark McKinney, Law Enforcement Coordination and Community Outreach Section of the U.S. Attorney’s Office for the Southern District of Florida, knocks on doors at a Liberty City apartment complex during a recent Walking One Stop.
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Justice Department Secures Agreement with San Juan, Puerto Rico, to Improve Public Sidewalk Accessibility for People with DisabilitiesRead the Press Release
The Justice Department today filed a proposed stipulated order that will require the Municipality of San Juan, Puerto Rico, to take critical steps towards making its public sidewalk system accessible to individuals with disabilities. The proposed order was filed jointly with the municipality and private plaintiffs and pauses the department’s lawsuit against the municipality while requiring it to conduct a comprehensive assessment of sidewalk accessibility and to begin fixing accessibility barriers. The lawsuit alleges that San Juan has violated the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act (Section 504) by failing to provide people with disabilities equal access to the municipality’s sidewalks, curb ramps, crosswalks and other pedestrian facilities.
“City sidewalks must be accessible so that people with disabilities can equally participate in community life and enjoy the many benefits that come from being able to safely navigate city streets and sidewalks,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This stipulated order puts San Juan on the path to making its public sidewalks accessible and we will continue working with San Juan to ensure it follows that path to its conclusion and achieves full program access.”
“We are heartened by San Juan’s willingness to commit significant resources to start addressing the accessibility of its public sidewalk system,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “The municipality’s investment and ongoing efforts will benefit all of its citizens and will help ensure that people with disabilities who live in or visit San Juan can enjoy all that the city has to offer.”
Under the proposed order, which requires court approval, San Juan will hire an outside accessibility consultant to conduct a comprehensive assessment of the municipality’s public sidewalk system to identify barriers to people with mobility disabilities. San Juan will also create a process for individuals to report barriers and to request installation or repair of curb ramps or sidewalks. The information gathered through the assessment and barrier reporting process will provide the basis for the parties to negotiate a final resolution of the lawsuit.
In addition, San Juan will provide training on the ADA Accessibility Standards to municipal employees who supervise construction, repair, or maintenance work related to the public sidewalk system. San Juan will retain independent licensed architects and engineers to verify that any construction or alterations related to the public sidewalk system comply with the ADA Accessibility Standards. Whenever the municipality repaves or resurfaces roads, it will provide compliant curb ramps at any intersection with a sidewalk. San Juan will also post its ADA Notice, ADA Grievance Procedure, and ADA Coordinator contact information in an accessible format on the municipality’s website.
This matter is being handled by the Civil Rights Division’s Disability Rights Section and the U.S. Attorney’s Office for the District of Puerto.
The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. Members of the public may report possible civil rights violations at civilrights.justice.gov/report.
Proposed Stipulated OrderJustice Department Announces Charges Against China-Based Chemical Manufacturing Companies and Arrests of Executives in Fentanyl ManufacturingRead the Press Release
The Justice Department today announced the arrest of two individuals and the unsealing of three indictments in the Southern and Eastern Districts of New York charging China-based companies and their employees with crimes related to fentanyl production, distribution, and sales resulting from precursor chemicals. These indictments represent the first prosecutions to charge China-based chemical manufacturing companies and nationals of the People’s Republic of China (PRC) for trafficking fentanyl precursor chemicals into the United States. Specifically, the indictments allege the defendants knowingly manufactured, marketed, sold, and supplied precursor chemicals for fentanyl production in the United States in violation of federal law.
During these investigations, the Drug Enforcement Administration (DEA) seized more than 200 kilograms of fentanyl-related precursor chemicals, a quantity that could contain enough deadly doses to kill 25 million Americans.
Fentanyl is a highly addictive synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Fentanyl and its analogues have devastated communities across the United States and are fueling the ongoing overdose epidemic, which the Centers for Disease Control and Prevention (CDC) recently estimated killed approximately 110,000 Americans in 2022. Fentanyl is now the leading cause of death for Americans ages 18 to 49. Fentanyl analogues, similar in chemical makeup and effect to fentanyl, can be even more potent and lethal than fentanyl.
“When I announced in April that the Justice Department had taken significant enforcement actions against the Sinaloa Cartel, I promised that the Justice Department would never forget the victims of the fentanyl epidemic,” said Attorney General Merrick B. Garland. “I also promised that we would never stop working to hold accountable those who bear responsibility for it. That includes not only going after the leaders of the Cartels, their drug and gun traffickers, their money launderers, security forces, and clandestine lab operators. It also includes stopping the Chinese chemical companies that are supplying the cartels with the building blocks they need to manufacture deadly fentanyl.”
“Today’s announcement is a down payment on our pledge to use every tool in the government’s arsenal, in every corner of the globe, to protect American communities,” said Deputy Attorney General Lisa O. Monaco. “The Justice Department will not rest or relent in investigating and prosecuting every link of the fentanyl supply chain, including the PRC companies and executives who produce and export vast quantities of the precursor chemicals the drug cartels need to peddle their poison. There can be no safe haven.”
“Today’s announcement is a considerable step forward in our unrelenting fight against fentanyl, targeting the threat where it starts,” said DEA Administrator Anne Milgram. “These companies and individuals are alleged to have knowingly supplied drug traffickers, in the United States and Mexico, with the ingredients and scientific know-how needed to make fentanyl – a drug that continues to devastate families and communities across the United States, killing Americans from all walks of life. Targeting entire criminal drug networks, from the source of supply to the last mile of distribution, is critical to saving American lives. DEA will not stop until this crisis ends.”
Southern District of New York
An indictment was unsealed in the Southern District of New York charging the China-based chemical company Hubei Amarvel Biotech Co. Ltd., aka AmarvelBio, (Amarvel Biotech), as well as its executives and employees Qingzhou Wang, 35, aka Bruce (Wang); Yiyi Chen, 31, aka Chiron (Chen); and Fnu Lnu, aka Er Yang and Anita (Yang), with fentanyl trafficking, precursor chemical importation, and money laundering offenses. Wang and Chen, both nationals of China, were expelled from Fiji on June 8, arrested by the DEA, and presented before U.S. Magistrate Judge Wes Reber Porter in Honolulu federal court on June 9. Wang and Chen were ordered detained in Honolulu and will appear in Manhattan federal court following their arrival in the Southern District of New York. Yang, also a national of China, is at large.
“The indictment unsealed today in the Southern District of New York is the next step in our fight against fentanyl,” said U.S. Attorney Damian Williams for the Southern District of New York. “Today, we target the very beginning of the fentanyl supply chain: the Chinese manufacturers of the raw chemicals used to make fentanyl and its analogues. We’ve charged a Chinese precursor chemical company. And that’s not all. We’ve charged and arrested some of the individuals who work at the company. That includes a corporate executive and a marketing manager. They’re in American handcuffs. And they’re going to face justice in an American courtroom.”
According to the allegations contained in the indictment and other court filings, Amarvel Biotech is a chemical manufacturer based in the city of Wuhan, in Hubei province, China, that has exported vast quantities of the precursor chemicals used to manufacture fentanyl and its analogues.
Amarvel Biotech has openly advertised online its shipment of fentanyl precursor chemicals to the United States and to Mexico, where drug cartels operate clandestine laboratories, synthesize finished fentanyl at scale, and distribute the deadly fentanyl into and throughout the United States. Through its website and a host of other storefront sites, Amarvel Biotech has targeted precursor chemical customers in Mexico, including by advertising fentanyl precursors as a “Mexico hot sale;” guaranteeing “100% stealth shipping” abroad; and posting to its websites documentation of Amarvel Biotech shipping chemicals to Culiacan, Mexico, the home city of the Sinaloa Cartel, one of the dominant drug trafficking organizations in the Western Hemisphere and which is largely responsible for the massive influx of fentanyl into the United States in recent years.
Amarvel Biotech has also endeavored to thwart law enforcement interdiction of its precursor chemical shipments. Amarvel Biotech has advertised, for example, the company’s ability to use deceptive packaging – such as packaging indicating the contents are dog food, nuts, or motor oil – to ensure “safe” delivery to the United States and Mexico.
Over the past eight months, during an undercover investigation by the DEA, Amarvel Biotech and its principal executive, Wang, its marketing manager, Chen, and its sales representative, Yang, shipped more than 200 kilograms from China to the United States of precursor chemicals used to make fentanyl and its analogues. Amarvel Biotech, Wang, Chen, and Yang shipped the precursors to the United States intending that the chemicals would be used to produce fentanyl and its analogues in New York, and they agreed to continue supplying multi-ton shipments of fentanyl precursors despite being told that Americans had died after consuming fentanyl made from the chemicals that the defendants had sold.
For example, on or about Nov. 17, 2022, a DEA confidential source (CS-1) wrote to Yang using an encrypted messaging application, “You know I making fentanyl,” and “Is not safe.” Yang replied, “I know.” On or about Dec. 1, 2022, Yang wrote to CS-1, promising that CS-1 would be “happy with our product” and noting that CS-1 would “be able to synthesize fentanyl.” In exchange for payment in cryptocurrency, Amarvel Biotech thereafter shipped from China to New York approximately 999.7 grams of the fentanyl precursor 1-boc-4-AP, approximately 1,002.6 grams of the fentanyl precursor 1-boc-4-piperidone, and approximately 893.6 grams of the methamphetamine precursor methylamine.
In or about March 2023, Wang and Chen met in person with an individual whom CS-1 represented was CS-1’s boss but was in fact another DEA confidential source (CS-2). During the meeting, Wang and Chen discussed Amarvel Biotech’s ability to supply ton-quantities of fentanyl precursors to New York for CS-1 and CS-2’s fentanyl manufacturing operation. After CS-2 stated that CS-2 wanted a different formula for manufacturing fentanyl and that several of CS-2’s American customers had purportedly died, Wang and Chen advised they had “a lot of customers in America and Mexico” who could provide technical assistance with fentanyl production.
After March 2023, Amarvel Biotech, Wang, Chen, and Yang agreed to sell CS-1 and CS-2 approximately 210 kilograms of fentanyl precursors in exchange for payment in cryptocurrency. During an April 10 video call with Wang and Chen, CS-2 stated that the approximately 210 kilograms of fentanyl precursors would be used to manufacture approximately 50 to 55 kilograms of fentanyl – an amount that, as noted above, could contain approximately 25 million deadly doses.
In or about May 2023, Amarvel Biotech, Wang, Chen, and Yang sent to the United States the shipment ordered by CS-1 and CS-2. On or about May 5, the DEA retrieved the precursor shipment from a warehouse near Los Angeles. Lab testing confirmed the presence of a precursor chemical for a fentanyl analogue. In an encrypted messaging group chat with CS-1, CS-2, Wang, and Chen, Yang explained that “New York, the United States, has been strict in checking the precursors of the ‘final product’ some time ago, so for the sake of safety, this time it is sent to California.”
In or about June 2023, Wang and Chen met again with CS-2. During the meeting, Wang and Chen discussed with CS-2 a multi-ton order of fentanyl precursor chemicals. Wang and Chen also discussed the need to take additional measures to protect themselves from detection and interdiction of their shipments “because recently American government . . . seized some Mexican group and they followed the routes to China,” where the U.S. Government found “our competitor in China” – an apparent reference to fentanyl-related charges filed in the Southern District of New York and announced in April 2023 against, among others, leadership of the Sinaloa Cartel and certain China-based precursor chemical company executives.
DEA’s Special Operations Division Bilateral Investigations Unit investigated the case, with assistance from the DEA Bangkok Country Office, DEA Wellington Country Office, DEA Beijing Country Office, DEA Honolulu District Office, DEA New York Organized Crime Drug Enforcement Task Force (OCDETF), DEA Riverside District Office, DEA Special Testing Laboratory, the Justice Department’s Office of International Affairs, the Royal Thai Police Narcotics Suppression Bureau, the Fiji Police Force Narcotic Bureau, the Fiji Office of the Director of Public Prosecutions, and the U.S. Attorney’s Office for the District of Hawaii.
The Southern District of New York’s Office’s National Security and International Narcotics Unit is prosecuting the case.
Eastern District of New York
Two indictments were unsealed in the Eastern District of New York that detail criminal conspiracies by companies and employees based in China to manufacture and distribute fentanyl in the United States.
The first indictment charges Anhui Rencheng Technology Co. (Rencheng) Ltd.; Anhui Moker New Material Technology Co.; Shutong Wang; and Shifang Ruan, aka Eva, with conspiracy to manufacture and distribute fentanyl, manufacture of fentanyl, and other related offenses. In addition, the indictment charges those same defendants, as well as Xinyu Zhao, aka Sarah, and Yue Gao, aka Ellie, with illegally concealing their activities, including through customs fraud and introducing misbranded drugs into the U.S. marketplace. The indictment also charges Rencheng, Wang, and Ruan with conspiracy to distribute butonitazene, a controlled substance.
The second indictment charges Hefei GSK Trade Co. Ltd, aka Hebei Gesuke Trading Co. Ltd. and Hebei Sinaloa Trading Co. Ltd.; and Ruiqing Li with similar offenses, including conspiracy to manufacture and distribute fentanyl, manufacture of fentanyl, conspiracy to distribute a List I chemical, distribution of a List I chemical, customs fraud conspiracy, introducing misbranded drugs into interstate commerce, and distribution of metonitazene, a controlled substance.
“As alleged, the defendants knowingly distributed the chemical building blocks of fentanyl to the United States and Mexico, even providing advice on how they should be used to manufacture this dangerous drug which inflicts untold tragedy in New York City, Long Island, and across the nation,” said U.S Attorney Breon Peace for the Eastern District of New York. “This prosecution shows that the companies and individuals who fuel our nation’s deadly opioid epidemic – wherever they are located – will be found and prosecuted to the full extent of the law.”
As alleged in the indictments, the defendant companies supplied precursor chemicals to the United States and Mexico, among other places, knowing they would be used to manufacture fentanyl. The defendant companies openly advertised their products all over the world, including to the United States and Mexico, on social media platforms. They also sent their chemical products to the United States and Mexico by boat and by air, using public and private international mail and package carriers. To prevent detection and interception of chemical products at the borders, the defendant companies employed deceptive and fraudulent practices, such as mislabeling packages, falsifying customs forms, and making false declarations at border crossings. The chemicals distributed by the defendants included all the materials necessary to manufacture fentanyl via the most common pathways.
The defendant companies attempted to obfuscate their distribution of fentanyl precursors by adding “masking” molecules, which slightly alter the chemical signature of the underlying precursor chemicals. By changing the chemical signature, an altered substance could evade testing protocols and relevant regulations by appearing to be a new substance. Such masking molecules are easily removed, thus enabling the purchaser to return the substance to its original form as a fentanyl precursor. The defendant companies not only produced and distributed masked precursors, but also provided instructions about how to remove the masking molecules upon receipt, thus helping their customers to more effectively obtain banned precursors and produce fentanyl. The defendants also gave instructions on how to improve fentanyl yield and advice on which chemicals to buy to replace banned precursor products.
Mexican drug trafficking organizations, including but not limited to the Sinaloa Cartel and the Jalisco New Generation Cartel (CJNG), have increasingly availed themselves of the fentanyl precursors and masked fentanyl precursors developed and distributed by the defendant companies and companies like them. The chemicals provided by the defendant companies have enabled such cartels and other drug trafficking organizations to produce fentanyl in clandestine laboratories in Mexico on a massive scale, for subsequent distribution in the United States and elsewhere. The materials and instructions provided by the defendant companies and companies like them have directly caused and contributed to the influx of deadly fentanyl into the United States.
DEA New York, DEA Mexico, DEA Diversion Control Division, DEA Special Testing and Research Laboratory, U.S. Customs and Border Protection New York Field Office, IRS Criminal Investigation New York Division, and U.S. Postal Inspection Service New York investigated the case. The New York City Police Department, the New York State Police, and the Justice Department’s Office of International Affairs provided assistance on the case.
The Eastern District of New York’s Office’s International Narcotics and Money Laundering Section is prosecuting the case.
This effort is part of an 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 www.justice.gov/OCDETF
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
SDNY Indictment EDNY Indictment 2 EDNY Indictment 1Jury Convicts California Man for Assaulting Child on AircraftRead the Press Release
Orlando, Florida –United States Attorney Roger B. Handberg announces that a federal jury today found Brian Patrick Durning (52, Altadena, CA) guilty of assault of a minor on an aircraft and two counts of simple assault. Durning faces a maximum penalty of five years in federal prison on the first offense, and up to two years in prison on the second offense. His sentencing hearing is scheduled for September 26, 2023. Durning had been indicted on July 6, 2022.
According to testimony and evidence presented at trial, Durning boarded a redeye flight from Los Angeles to Orlando and was seated next to a 13-year-old girl. The child had been separated from the rest of her family, who were seated two rows away from her. After the cabin lights were dimmed and most of the passengers fell asleep, Durning assaulted the child. A nearby passenger awoke and observed one of Durning’s hands between the child’s legs and intervened.
This case was investigated by the Federal Bureau of Investigation, the Federal Air Marshals, and the Orlando Police Department. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta and Courtney Richardson-Jones.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Iowa City Man Sentenced to Nine Years in Prison for Unlawful Possession of a FirearmRead the Press Release
DAVENPORT, IA – A Iowa City man was sentenced today to nine years in federal prison for being a prohibited person in possession of a firearm.
According to court documents, and evidence presented at sentencing, Michael Haythorn, 32, fled from law enforcement after they were called to respond to a domestic disturbance between Haythorn and his significant other. Law enforcement chased Haythorn on foot until he jumped a fenced and officers lost sight of him. Approximately 20 feet away from the location that Haythorn jumped the fence, officers located a firearm. The firearm had Haythorn’s DNA on it. Haythorn knew he was a felon and was prohibited from possessing firearms.
After completing his term of imprisonment, Haythorn will be required to serve three 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 Iowa City Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.
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. In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Inland Empire Skilled Nursing Facility and Management Company Agree to Pay $3.8M to Settle Allegations of Kickbacks to DoctorsRead the Press Release
LOS ANGELES – A skilled nursing facility in Riverside and its management company have agreed to pay the United States and California a total of $3.825 million to resolve allegations related to kickbacks allegedly given to physicians to induce patient referrals, United States Attorney Martin Estrada announced today.
Alta Vista Healthcare & Wellness Centre, LLC and its management company, Rockport Healthcare Services, settled a “whistleblower” case that alleged they submitted and caused the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians. The $3.85 million settlement amount was negotiated based on Alta Vista’s and Rockport’s lack of ability to pay.
The lawsuit in this matter was unsealed on June 16.
The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services covered by Medicare, Medicaid and other federally funded programs. It is intended to ensure that medical decision-making is not compromised by improper financial incentives and is instead based on the best interests of the patient.
From 2009 through 2019, Alta Vista, under the direction and control of Rockport, gave certain physicians extravagant gifts, including expensive dinners for the physicians and their spouses, golf trips, limousine rides, massages, e-reader tablets and gift cards worth up to $1,000. Separately, Alta Vista paid these physicians monthly stipends of $2,500 to $4,000, purportedly for their services as medical directors. At least one purpose of these gifts and payments was to induce these physicians to refer patients to Alta Vista.
“The administrators and beneficiaries of the Medicare and Medicaid programs expect that providers will make decisions based on sound medical judgment, not their personal self-interest,” said United States Attorney Martin Estrada. “As this case demonstrates, our office will take decisive action to address allegations that medical providers are paying or receiving improper financial benefits that could impact care provided to patients.”
“Kickbacks can impair the independence of physician decision-making and waste taxpayer dollars,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to preventing illegal financial relationships that undermine the integrity of our public healthcare programs.”
“Decisions that affect patient health should be made solely on the basis of a patient’s best interest,” said California Attorney General Rob Bonta. “When a healthcare company cheats and offers kickbacks to gain an unfair advantage, it jeopardizes the health and wellbeing of those who rely on its services. These illegal schemes also make public services and programs costlier, and ultimately waste valuable taxpayer dollars. Today, I thank the U.S. Department of Justice for teaming up with the California Department of Justice on this case. This settlement demonstrates our commitment to protecting the integrity of Medi-Cal, and the taxpayer dollars that support the program."
“Kickbacks impose hidden costs on the health care system, compromise medical decision making, and taint the doctor-patient relationship,” said Special Agent in Charge Timothy B. DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “Working tirelessly with our law enforcement partners, HHS-OIG will continue to prevent the waste of valuable taxpayer dollars and protect the integrity of federal health care programs.”
The defendants’ conduct allegedly resulted in false claims to Medicare and California’s Medicaid programs, the latter of which is jointly funded by the federal government and California. Under the settlement, they will pay $3,228,300 to the United States and $596,700 to California.
The settlement announced today stems from a whistleblower complaint filed in 2015 by former Alta Vista accounting employee Neyirys Orozco pursuant to the qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the government and to share in the proceeds of the suit. Orozco will receive $581,094 as her share of the federal government’s recovery in this case.
In addition to resolving their False Claims Act liability, Alta Vista and Rockport have entered into a five-year Corporate Integrity Agreement with HHS-OIG which requires, among other compliance obligations, an Independent Review Organization’s review of Alta Vista’s and Rockport’s physician relationships.
The United States’ settlement in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS-OIG, at 800‑HHS‑TIPS (800-447-8477).
This matter was handled by Assistant United States Attorney Ross Cuff of the Civil Fraud Section; the Commercial Litigation Branch, Fraud Section, of the Justice Department’s Civil Division; and the California Department of Justice. HHS-OIG provided investigative support.
The case is captioned United States of America ex rel. Neyiris Orozco v. Shlomo Rechnitz, et al., CV15-6177.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Indictment Accuses St. Louis Jail Employee of Assaulting Handcuffed DetaineeRead the Press Release
ST. LOUIS – A corrections officer at the St. Louis Justice Center has been indicted on a civil rights charge and accused of assaulting a handcuffed detainee in March.
Direll Alexander, 45, was indicted by a federal grand jury Wednesday on one felony count of deprivation of rights under color of law. The indictment says Alexander violated the detainee’s Constitutional right to be free from unreasonable force. It says that on March 6, 2023, Alexander assaulted and injured the detainee while he was restrained in handcuffs and while he did not pose any threat to Alexander.
“Jail employees are required by the Constitution to protect the rights of people in their custody and are barred from using excessive force on detainees,” said U.S. Attorney Sayler A. Fleming. “We take allegations of civil rights violations very seriously.”
Special Agent in Charge Jay Greenberg of the FBI St. Louis Division said, “The FBI prioritizes investigations of civil rights violations, which include the use of excessive force by sworn law enforcement officers.”
Alexander made his first appearance in court Friday, pleading not guilty to the charge.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The charge is punishable by up to 10 years in prison and a $250,000 fine, or both.
The FBI investigated the case. Assistant U.S. Attorney Christine Krug is prosecuting the case.
Indianapolis Woman Pleads Guilty to Illegally Purchasing Firearm Used to Shoot and Kill Champaign Police OfficerRead the Press Release
PEORIA, Ill. – An Indianapolis woman, Ashantae S. Corruthers, 29, of the 5700 block of Port Hope Drive, pleaded guilty on June 22, 2023 to conspiracy to illegally purchase and transfer a firearm and conspiracy to engage in misleading conduct. Sentencing for Corruthers has been scheduled on November 6, 2023, at the U.S. Courthouse in Urbana, Illinois.
In court before U.S. Magistrate Judge Jonathan E. Hawley, Corruthers admitted that she conspired with co-defendant Regina Lewis and Darion M. Lafayette, now deceased, to purchase and transfer a firearm to Lafayette, who could not legally purchase a firearm himself because he was a convicted felon. Such a transaction is commonly known as a “straw purchase.” During the hearing, the government stated that, on November 17, 2020, at the direction of Lafayette and Lewis, Corruthers purchased a Glock 48, nine-millimeter, semi-automatic pistol and Sellier & Bellot, nine-millimeter ammunition, from a federal firearms licensee (FFL) in Indianapolis. During the purchase, Corruthers falsely certified on an ATF form that she was the actual buyer of the firearm, when in fact, she purchased the firearm for Lafayette and gave it to Lewis to transfer to him.
Corruthers further admitted that she conspired with Lewis and Lafayette to cover up the discovery of their illegal purchase and transfer of the firearm by falsely reporting to the Indianapolis Metropolitan Police Department on April 26, 2021, that the Glock pistol was stolen from her around March of 2021. The government stated that, approximately twenty-three days after Corruthers falsely reported the firearm stolen, Lafayette used the firearm to shoot and kill Champaign Police Officer Christopher Oberheim in Champaign, Illinois. Corruthers admitted that she and Corruthers continued the cover-up after Officer Oberheim’s death by agreeing to falsely tell an ATF Special Agent investigating the officer-involved shooting that she purchased the gun for herself, that it was stolen from her in March of 2021, and that she did not know Lafayette.
Corruthers remains released on conditions of bond pending sentencing. Lewis remains in the custody of the U.S. Marshals Service pending her sentencing, which previously was scheduled for October 2, 2023, at the U.S. Courthouse in Urbana, Illinois
Both Corruthers and Lewis face statutory penalties of up to five years in prison for conspiracy to illegally purchase and transfer a firearm and up to twenty years in prison for conspiracy to engage in misleading conduct. Each charge also carries a penalty of up to three years of supervised release and up to a $250,000 fine.
The case investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Supervisory Assistant U.S. Attorney Eugene L. Miller is currently representing the government in the prosecution.
The case against Corruthers 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.
Four People Charged in Stolen Identity Fraud and Money Laundering Scheme Targeting Banks and COVID-19 Pandemic Relief FundsRead the Press Release
MIAMI – A federal magistrate judge in Miami has unsealed an indictment charging Patrick Ductant, 35, of Pembroke Pines, Fla., Kervens Saint-Hilaire, 35, of Hollywood, Fla., and Vladimir Saint-Hilaire, 35, of Hollywood, Fla., with felony offenses, including conspiracy, bank and wire fraud, money laundering, and aggravated identity theft. Terri Shana Davis, 33, of Marietta, Ga., was also charged in the indictment with conspiracy and aggravated identity theft offenses.
According to the indictment, from October 2019 through May 2021, the defendants unlawfully obtained and used personally identifiable information (“PII”) of unknowing victims to apply for and receive bank loans, open bank accounts, acquire credit and debit cards, and conduct financial transactions. Additionally, the indictment alleges that the defendants unlawfully used PII to apply for and obtain COVID-19 pandemic relief funds made available by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). The indictment also alleges that Davis sold and supplied some of the PII used to carry out the crimes stated in the indictment, which Davis accessed through her employment at a company in Atlanta, Ga.
If convicted, Ductant faces up to 256 years in prison, Kervens Saint-Hilaire faces up to 260 years in prison, Vladimir Saint-Hilaire faces up to 216 years in prison, and Davis faces up to 34 years in prison. A federal district court judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Sheriff Gregory Tony of the Broward County Sheriff’s Office (BSO) made the announcement.
BSO investigated the case, with assistance from U.S. Secret Service (USSS), Miami Field Office. Assistant U.S. Attorney David Snider is prosecuting it. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
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.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. For more information on the department’s response to the pandemic, please click here.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-60119.
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Former U.S. Serviceman Sentenced to 27 Months in Prison for Illegally Exporting Night Vision Goggles, Other Military Items to RussiaRead the Press Release
LOS ANGELES – A former member of the United States military was sentenced today to 27 months in federal prison for conspiring to unlawfully export to Russia defense articles – including thermal imaging riflescopes and night vision goggles – without a license in violation of the Arms Export Control Act.
Igor Panchernikov, 41, a former Corona resident who once served in the United States Air Force Reserves, was sentenced by United States District Judge André Birotte Jr.
Panchernikov pleaded guilty on March 24 to one count of conspiracy to violate the Arms Export Control Act. He has been in federal custody since July 2022 after Israel extradited him to the United States.
From December 2016 to May 2018, Panchernikov conspired with other individuals to knowingly export from the United States to Russia defense articles without obtaining from the State Department a valid license or other approval for such exports.
Panchernikov’s accomplices purchased defense articles – including thermal riflescopes, weapons sights, monoculars and night vision googles – from various online sellers located in the United States and directed the sellers to mail those items to Panchernikov’s residence in Corona.
At his Corona residence, Panchernikov received at least 19 defense articles that his co-conspirators purchased from online sellers. After receiving these items, Panchernikov inspected the items to ensure that they were undamaged and operational. Pursuant to his co-conspirators’ instructions, Panchernikov then mailed two of the items to accomplices in Russia and mailed 17 defense articles to Elena Shifrin, 61, of Mundelein, Illinois, who then mailed these items to Russia.
To conceal his unlawful activities, when Panchernikov exported the two defense articles to Russia, he listed fictitious sender names on the packages containing the items. He also falsely identified the items in the packages as non-export-controlled items, such as clothing. Finally, he concealed the defense articles in other items, including a drill press.
Shifrin pleaded guilty in February 2022 to one count of conspiracy to violate the Arms Export Control Act. Her sentencing hearing is expected in the coming months.
Vladimir Pridacha, 58, of Volo, Illinois, has pleaded not guilty to criminal charges in this case and has an August 29 trial date scheduled.
Two other defendants charged in this case – Boris Polosin, of Russia, and Vladimir Gohman, of Israel – are fugitives.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI’s Los Angeles and Chicago field offices investigated this matter, with substantial assistance from the United States Postal Inspection Service and Homeland Security Investigations.
Assistant United States Attorneys David T. Ryan, Chief of the Terrorism and Export Crimes Section, and Wilson Park of the General Crimes Section are prosecuting this case.
Former Jail Contractor Sentenced to More Than 17 Years for Distributing Child Sexual Abuse MaterialsRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Brandon Paul Smolinski (36, Middleburg) to 17 years and 6 months in federal prison for distribution of child sexual abuse materials. His prison term is to be followed by 10 years of supervised release. The court also ordered Smolinski to pay $33,500 in restitution to the victims of his offense. Smolinski had pleaded guilty on March 22, 2023.
According to court documents, the Putnam County Sheriff’s Office (PCSO) initiated an investigation after receiving information about five files of child sexual abuse material (CSAM) being sent over a social media application by a user. PCSO’s investigation revealed that the files were sent from within the Putnam County Jail and traced the social media account to that of Smolinski, who was working for a transportation company that does work inside of the Putnam County Jail. The company provided Smolinski’s work schedule and confirmed that he was working in the Putnam County Jail on the dates and times the files were shared from within the facility.
PCSO contacted the Clay County Sheriff’s Office (CCSO) to request assistance at Smolinski’s residence in Middleburg and CCSO discovered additional information that the internet service at Smolinski’s residence was also used to upload files of CSAM using the same social media application. Detectives from PCSO and CCSO approached Smolinski in the parking lot at the Putnam County Jail. During an interview with the detectives, Smolinski stated that he worked in the jail for approximately six months. He further said that he worked the nightshift, and even though no one was supposed to bring their phones into the jail tower, he brought his phone and used it to log onto the secure Wi-Fi at the Putnam County Jail.
Smolinski admitted to having the social media application used to distribute the files of CSAM. When shown particular files of CSAM distributed from his account, Smolinski acknowledged having seen the files and that they depicted children, estimating that one of the children being sexually abused in a video appeared “young, 10 years old.” Smolinski said he would save a video shared with him via chat groups on the app, and then would flip the videos around and re-send them out. When asked if he knew what he was doing was wrong, Smolinski replied, “Oh … yes, … 100% wrong.” Smolinski said he had been involved viewing and distributing CSAM for several years.
During a forensic review of Smolinski’s iPhone, law enforcement discovered multiple files of CSAM, including a file sent to Person A on June 27, 2022. Also, on Smolinski’s phone were several chat messages between Smolinski and Person A, during which they talked about exploiting children. Within the messages, Smolinski said his “favorite age” was “8-9-10-14. Somewhere in there, but I’m not picky.”
“This sexual predator knew he was ‘100 percent wrong’ when distributing child sexual abuse materials on the internet, and he did it anyway,” said Homeland Security Investigations (HSI) Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “The Northeast Florida INTERCEPT Task Force, to include Putnam County Sheriff’s Office and Clay County Sheriff’s Office, will continue to combine efforts, technology, and expertise to identify and prosecute those who prey on children.”
This case was investigated by the Putnam County Sheriff’s Office, the Clay County Sheriff’s Office, and Homeland Security Investigations (HSI), and the Northeast Florida INTERCEPT Task Force. It was prosecuted by Assistant United States Attorney Ashley Washington and former United States Attorney Kelly Karase.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Florida Man Pleads Guilty to Role in Nationwide “Felony Lane Gang” ConspiracyRead the Press Release
ALBANY, NEW YORK – Cedric Lynch, age 38, of Orlando, Florida, pled guilty today to conspiracy to commit bank fraud and aggravated identity theft. United States Attorney Carla B. Freedman; Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI); and Putnam County Sheriff Kevin J. McConville made the announcement.
Lynch admitted that he was involved in a fraud scheme known as “Felony Lane Gang” between 2015 and 2020. Lynch and his co-conspirators traveled across the country breaking into cars, often targeting those parked by women at locations such as health and fitness centers, daycares, and parks. Lynch and other members of the conspiracy stole debit cards, credit cards, checkbooks, and photo identifications in these “smash-and-grab” vehicle thefts, and they used these stolen items to commit bank fraud by recruiting women to impersonate the smash-and-grab victims and cash checks in drive-through bank lanes. The recruited check cashers were almost always suffering from an addiction to drugs and were provided payment at least partially in narcotics. In February 2019, Lynch and co-defendant Randall Taylor used a victim’s stolen identity documents to open a bank account in the victim’s name in Chicago, which they subsequently used in furtherance of their criminal activities. Lynch admitted that the loss amount from the conspiracy that was foreseeable to him is between $40,000 and $95,000.
The charges to which Lynch pled guilty carry a minimum term of 2 years in prison and a maximum term of 30 years, a fine of up to $1.25 million, and a supervised release term of up to 5 years. Lynch will be sentenced on October 24, 2023, by United States District Judge Mae A. D’Agostino, who presides over the case. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Lynch was one of nine men charged in a 13-count indictment for their roles in the scheme, and all nine men have now pled guilty and have either been sentenced or are awaiting sentencing:
- KEYSHAWN ARNOLD, age 25, of Schenectady, New York, pled guilty to conspiracy to commit bank fraud and aggravated identity theft, and is scheduled to be sentenced on August 4, 2023;
- GARY GRIER, age 37, of Fort Lauderdale, Florida, pled guilty to conspiracy to commit bank fraud and aggravated identity theft, and is scheduled to be sentenced on August 25, 2023;
- JOSHUA MALLORY, age 37, of Fort Lauderdale, pled guilty to conspiracy to commit bank fraud and aggravated identity theft, and is scheduled to be sentenced on August 25, 2023;
- ROBERT NATSON, age 36, of Fort Lauderdale, pled guilty to conspiracy to commit bank fraud and is scheduled to be sentenced on August 10, 2023;
- TERRELL McDONALD, age 32, of Troy, New York, pled guilty to conspiracy to commit bank fraud and aggravated identity theft, and was sentenced to 65 months in prison and ordered to pay restitution in the amount of $133,190;
- TYRONE PARKER, age 40, of Fort Lauderdale, pled guilty to conspiracy to commit bank fraud and aggravated identity theft, and was sentenced to 57 months in prison and ordered to pay restitution in the amount of $132,990;
- TYRONE PARKER Jr., age 22, of Fort Lauderdale, pled guilty to conspiracy to commit bank fraud and aggravated identity theft, and is scheduled to be sentenced on September 13, 2023; and
- RANDALL TAYLOR, age 37, of Fort Lauderdale, pled guilty to conspiracy to commit bank fraud and aggravated identity theft, and is scheduled to be sentenced on October 2, 2023.
This case was investigated by the FBI Westchester Resident Agency of the New York Field Office and the Putnam County Sheriff’s Department, with assistance from the FBI Field Offices in Albany, Miami, and Salt Lake City, and Resident Agencies in Savannah, Georgia, and Portland, Maine, and from the U.S. Attorney’s Office for the District of Maine, the Saratoga County District Attorney’s Office, and the Ulster County District Attorney’s Office.
Additional assistance was provided by numerous law enforcement agencies, including, within New York, the New York State Police; Columbia County Sheriff's Office; Genesee County Sheriff’s Office; Monroe County Sheriff’s Office; Saratoga County Sheriff’s Office; Warren County Sheriff’s Office; and the police departments of the Town of Bethlehem; Glens Falls; Gloversville; Greenburgh; Greece; and Watervliet; and elsewhere, Connecticut State Police; Florida Department of Law Enforcement; Georgia State Patrol; Illinois State Police; Massachusetts State Police; Broward County, FL Sheriff’s Office; Northern York County, PA Regional Police; Southern Chester County, PA Regional Police; Utah County, UT Sheriff's Office; and the police departments of Auburn, MA; Bath, ME; Biddeford, ME; Bozeman, MT; Brunswick, ME; Caernarvon Township, PA; Chester Township, PA; Cinnaminson, NJ; Darien, CT; East Norriton Township, PA; Easthampton, MA; Greenwich, CT; Lower Moreland Township, PA; Manheim Township, PA; Portland, ME; Portsmouth, NH; Saco, ME; Salisbury, MA; Sanford, ME; Scarborough, ME; Somersworth, NH; South Portland, ME; St. George, UT; Syracuse, UT; Tinicum, PA; Towamencin, PA; Tewksbury, MA; Wakefield, MA; Yarmouth, ME; and York, ME.
Assistant United States Attorneys Matthew J. McCrobie, Michael F. Perry, and Paul Tuck are prosecuting the case.
Five Defendants Indicted for Methamphetamine and Fentanyl Trafficking ConspiracyRead the Press Release
LAS VEGAS – A federal Grand Jury returned a 15-count indictment charging five Las Vegas residents in connection to a conspiracy to distribute methamphetamine and fentanyl.
Darrell Glen Harris (41); Lamar Deshawn Rosser, also known as Lamar Deshawn Sparks (43); Paulina Hernandez (32); and Alexandra Trineysha Henriques (27) made their initial court appearance on June 21, 2023, before United States Magistrate Judge Daniel J. Albregts. Joey Lamar McRoyal (43) was apprehended in Los Angeles, California, and is awaiting an initial appearance in Las Vegas. A jury trial has been scheduled for August 21, 2023, before United States District Judge Cristina D. Silva.
According to allegations contained in the indictment, from about August 2022 to about June 20, 2023, Harris, McRoyal, Rosser, Hernandez, and Henriques conspired together to distribute 50 grams or more of methamphetamine, and 40 grams or more of fentanyl — both drugs are Schedule II controlled substances.
During the course of the conspiracy, Harris supplied McRoyal and Rosser with methamphetamine, fentanyl, cocaine, and other controlled substances for distribution in Las Vegas. This investigation resulted in seizures of methamphetamine, fentanyl, cocaine, heroin, MDMA, xylazine (also known as tranq), other controlled substances, and firearms in the District of Nevada. Law enforcement also learned that Harris supplied individuals with narcotics in other states, resulting in the seizure of methamphetamine, fentanyl, and cocaine in Pensacola, Florida.
Each defendant is charged with Conspiracy to Distribute a Controlled Substance (Methamphetamine and Fentanyl), and other charges.
If convicted, the statutory maximum penalty is life imprisonment, lifetime supervised release, a fine, and a special assessment.
United States Attorney Jason M. Frierson for the District of Nevada and Assistant Special Agent in Charge Kevin Adams for the Drug Enforcement Administration (DEA) Las Vegas District Office made the announcement.
The DEA Las Vegas District Office investigated the case. Assistant United States Attorney Joshua Brister is prosecuting the case.
This effort was 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.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Fentanyl Distributors Charged Following Fourth Fatal Juvenile OverdoseRead the Press Release
Two distributors who supplied the fentanyl that killed a 15-year-old girl in Carrollton last week have been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
The victim, is the fourth child to die of a fentanyl overdose in the area since September 2022.
Lizbeth Prieto, 19, also known as Lizbeth Escamilla, and Christian Lopez, 24, were charged via criminal complaint with conspiracy to distribute and possession with the intent to distribute controlled substances. Ms. Prieto made her initial appearance before U.S. Magistrate Judge Irma Ramirez on Friday; Mr. Lopez, who is currently in state custody, will have his initial appearance in the coming days.
“Four young lives, lost in an instant. Four families, heartbroken,” said U.S. Attorney Leigha Simonton. “Fentanyl continues to creep its insidious way through the teenage population, and no kid is immune. The Justice Department will continue to take traffickers off the streets. But our efforts alone are not enough. As soon as one trafficker is put behind bars, another rises up to take his place. Parents, teachers, and friends: Please, educate your kids on the dangers of counterfeit pills. Unless prescribed by a doctor, no pill is safe. Even tablets that appear to be prescription painkillers or other types of medications may well be laced with a deadly dose of fentanyl.”
“This is well beyond a ‘Carrollton’ problem. This is a you and me problem as it affects us all. This is a problem that we must join all facets of our community to educate, treat, prevent, and enforce the law to help those struggling and hold responsible those who deal drugs to the fullest extent of the law,” said Eduardo A. Chávez, Special Agent in Charge of DEA Dallas. “Just one pill can change so many lives forever. We will never stop seeking justice.”
“I am deeply saddened by the loss of life. Our hearts and prayers go out to the victim’s family. We continue to work tirelessly to make it difficult for drug dealers to operate in our city by arresting them, and bringing them to justice. We will continue to do all we can to keep this poison out of our city,” said Carrollton Police Chief Roberto Arredondo.
According to the complaint, Mr. Lopez supplied fentanyl pills to Ms. Prieto, who provided them to the victim, a 15-year-old student at Newman Smith High School in Carrollton identified in court documents as “J.G.,”
Family members called 911 when they found the J.G. unresponsive, face down on her bed on Tuesday, June 13. She was transported to the hospital and pronounced deceased shortly thereafter.
Knowing the death was likely fentanyl-related, the family gave law enforcement consent to search J.G.’s bedroom and her cell phone. Inside her room, agents found ten counterfeit Percocet pills inscribed M/30, which later tested positive for fentanyl. On her Instagram, they found communications between the girl and Ms. Prieto from approximately 24 hours before the death.
In messages, Ms. Prieto allegedly offered to sell J.G. 13 fentanyl pills for $100 dollars, confirmed she could pay with cash, and asked for her address. A short while later, Ms. Prieto allegedly advised J.G. that she was pulling up to the home to deliver the pills. An undercover officer immediately reached out to Ms. Prieto and asked to purchase M/30 fentanyl pills.
The next day, Ms. Prieto allegedly arranged to meet the undercover officer. Prior to the transaction, law enforcement observed Ms. Prieto get into Mr. Lopez’s car. She then exited the car, met with the officer, and handed over several pills. In return, the officer gave her marked bills. Shortly after the transaction, she got back into Mr. Lopez’s car.
Law enforcement pulled Mr. Lopez after he departed and found five out of the six marked bills in his possession. He allegedly admitted he had supplied Ms. Prieto with the counterfeit pills she gave the undercover, which tested positive for fentanyl.
Ms. Prieto allegedly admitted that Mr. Lopez was her supplier, and confessed that she sold J.G. a dozen M/30 pills. She said she did know J.G.’s exact age, but knew that she was young.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Both defendants are presumed innocent until proven guilty in a court of law.
If convicted, they each face up to 20 years in federal prison.
The Drug Enforcement Administration’s Dallas Field Division and the Carrollton Police Department conducted the investigation. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.
Federal Grand Jury Returns Eleven-Count Indictment Charging Methamphetamine and Fentanyl Trafficking, Firearm Offense, and Money Laundering OffensesRead the Press Release
Louisville, KY – A federal grand jury in Louisville returned an eleven-count indictment on June 21, 2023, charging four men with trafficking in methamphetamine and fentanyl, and one with a firearm offense and money laundering.
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, Special Agent in Charge Bryant Jackson of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, Commissioner Phillip Burnett, Jr. of the Kentucky State Police, and Ron Eckart of the Greater Hardin County Narcotics Task Force made the announcement.
According to the indictment, between January 1, 2019, and December 9, 2022, Chaz Hughes, 30, of Louisville, Kentucky, Joshua Salazar, 33, of Lebanon, Kentucky, Curtis Cunningham, 26, of Lebanon, Kentucky, and Steven Edlin, 49, of Loretto, Kentucky conspired to distribute 50 grams or more of a methamphetamine mixture and 40 grams or more of a fentanyl mixture.
Hughes is also charged in a separate count with distributing 50 grams or more of methamphetamine.
Salazar is also charged in a separate count with distributing 50 grams or more of a methamphetamine mixture, possession of a firearm by a convicted felon, and six-counts of money laundering. Salazar was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses. On July 29, 2011, in Marion Circuit Court, Salazar was convicted of trafficking in cocaine. On August 19, 2016, in Nelson Circuit Court, Salazar, was convicted of trafficking in cocaine, felon in possession of a handgun, and felon in possession of a firearm.
Cunningham is also charged in a separate count for distributing a fentanyl mixture.
As of today, Salazar, Hughes, Cunningham, and Edlin have all made their initial appearances before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, Hughes and Salazar face a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. If convicted, Cunningham and Edlin face a mandatory minimum sentence of 5 years and a maximum sentence of 40 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the DEA, the IRS, the ATF, the KSP, and the Greater Hardin County Narcotics Task Force.
Assistant U.S. Attorney Joe Ansari is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (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 www.justice.gov/OCDETF.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fall River Man Pleads Guilty to Four Bank RobberiesRead the Press Release
BOSTON – A Fall River man pleaded guilty yesterday in federal court in Boston to robbing four separate banks in Massachusetts within a five-day period and attempting to rob a fifth bank.
William Sequeira, 60, pleaded guilty to four counts of bank robbery and one count of attempted bank robbery. U.S. District Court Judge Patti B. Saris scheduled sentencing for Sept. 12, 2023. Sequeira was charged by criminal complaint in November 2022 and subsequently indicted by a federal grand jury in December 2022.
Between Sept. 26, 2022 and Sept. 30, 2022, Sequeira robbed four separate banks in the Fall River and Boston areas. Specifically, Sequeira robbed: a Citizens Bank branch in Fall River on Sept. 26, 2022; a Santander Bank branch in Boston on Sept. 27, 2022; a M&T Bank branch in Boston on Sept. 28, 2022; and a TD Bank branch in Boston on Sept. 30, 2022. During the Santander Bank robbery on Sept. 27, 2022, Sequeira ran up to a teller and stated, “give me a $100 bill or I’ll put a bullet in your head.” Sequeira did not present a firearm. During the M&T Bank robbery on Sept. 28, 2022, Sequeira approached a teller and stated, “I'm going to put a gun to your head if you don't give me the $100 bills.” During the TD Bank robbery on Sept. 30, 2022 in Boston, Sequeira approached a teller and stated, “give me all the $100s in the drawer,” and “give me all the money before I blow your brains out,” before fleeing on foot with money from the teller.
On Oct. 5, 2022, law enforcement surveilling the Back Bay area in an effort to locate Sequeira, spotted him entering a Citizens Bank branch on Boylston Street in Boston. There, Sequeira approached the teller, said “Give me hundreds,” and then threatened to shoot the teller if they did not move fast enough. Sequeira was immediately apprehended.
The charges of bank robbery each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of attempted bank robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement. Valuable assistance was provided by the Fall River Police Department and the Suffolk County District Attorney’s Office. Assistant U.S. Attorney Luke A. Goldworm of Levy’s Major Crimes Unit is prosecuting the case.