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9 August 2023
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Two Dane County Residents Charged with Straw Purchase of Firearms
Irene M. Johll, 23, Oregon, Wisconsin, is charged with three counts of making a false statement during a purchase of a firearm. The indictment alleges that on November 30, 2022, February 7, 2023, and February 24, 2023, while purchasing a firearm from a federally licensed firearms dealer, Johll falsely indicated she was the actual buyer of the firearm when she knew she was purchasing the firearm for Lorenzo Lacey III, 26, Sun Prairie, Wisconsin. This is known as a straw purchase. The indictment charges Lacey with three counts of causing Johll to make those false statements.
If convicted, Johll and Lacey face a maximum penalty of 5 years in federal prison on each count. The charges against them are the result of an investigation by the Fitchburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Madison Man Charged with Drug & Gun Crimes
Ramogi O. Carr, Jr., is charged with possessing fentanyl with intent to distribute and with possessing a loaded firearm in furtherance of that drug trafficking crime. The indictment alleges that he possessed the fentanyl and firearm on May 2, 2023.
If convicted, Carr faces a maximum penalty of 20 years in federal prison on the fentanyl charge. The charge of possessing a loaded firearm in furtherance of a drug trafficking crime has a mandatory minimum penalty of 5 years and a maximum of life. Federal law requires that any penalty imposed on the charge of possessing a firearm in furtherance of a drug trafficking crime be served consecutive to any other prison term imposed.
The charges against Carr are the result of an investigation by the Federal Bureau of Investigation’s Safe Streets Task Force, the Madison Police Department, and the Fitchburg Police Department. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
These two indictments have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
German National Pleads Guilty to $4 M Embezzlement SchemeRead the Press Release
ALEXANDRIA, Va. – A German man pleaded guilty yesterday to a mail fraud scheme by which he embezzled more than $4 million from his employer.
According to court documents, between 2010 and 2017, Gerhard Bauer, 73, the CEO and President of a U.S. subsidiary company, embezzled more than $4 million by writing corporate checks to pay various personal expenses. He also created fake invoices to justify the expenses. Of note, he paid over $1,490,000 for the construction of his Virginia farm, winery, and horse ranch. He also paid over $146,000 for private school tuition for his relatives.
Bauer is scheduled to be sentenced on November 7. He faces a maximum penalty of 20 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 taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
The Loudoun County Sherriff’s Office assisted in the investigation.
Assistant U.S. Attorney Kimberly Shartar and former Assistant U.S. Attorneys Jack Hanly and Ron Fiorillo prosecuted 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. 1:20-cr-165.
Georgia woman sentenced to nearly four years in prison for multi-million dollar COVID-19 relief fraudRead the Press Release
ATLANTA – Lakisha Swope has been sentenced to federal prison for obtaining more than $3.6 million by submitting fraudulent Paycheck Protection Program (“PPP”) applications.
“Congress enacted the Paycheck Protection Program to provide emergency financial assistance to millions of Americans suffering the economic effects of the COVID-19 pandemic. But Swope used the program to commit a nationwide fraud scheme resulting in a nearly four-million-dollar theft of COVID relief funds,” said U.S. Attorney Ryan K. Buchanan. “Her sentence reflects the significance of her criminal conduct and demonstrates the dedication of our office, and federal, state, and local law enforcement partners, to ensure that individuals who seek to exploit this critical economic safety net are held accountable for their crimes.”
“While businesses were suffering and trying their best to make it through the pandemic, Swope chose greed,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Her greed impacted every tax-paying citizen. The FBI and our law enforcement partners will persist in unraveling these fraud schemes and bring criminals to justice.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Lakisha Swope operated a nationwide scheme seeking to obtain fraudulent PPP funds. The investigation revealed that dozens of false PPP applications were filed from Swope’s residence.
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. Additional funding was authorized by Congress in December 2020.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
But in this case, FBI agents, while executing a search warrant of Swope’s residence, seized voluminous documents showing her role in managing a conspiracy to defraud the program, including false PPP applications in the names of dozens of businesses.
To carry out this scheme, Swope flew around the country, including to Texas, Missouri, and Florida, to collect loan fees from business owners she was using to file these false PPP applications. Swope’s criminal conduct led to banks making $3,626,961 in fraudulent PPP payments. Swope used the fraudulently obtained funds on luxury clothing, restaurants, hotels, and vacation rentals.
Lakisha Swope, 45, of Suwanee, Georgia, was sentenced to three years and 10 months in prison to be followed by three years of supervised release and was ordered to pay $3,626,961 in restitution to the U.S. Small Business Administration.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Thomas J. Krepp prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia Man and Woman Sentenced to Federal Prison for Aggravated Identity Theft and Fraud ChargesRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Anthony Jermaine Robinson (31, Covington, Georgia) to 42 months in federal prison for conspiracy to commit bank fraud and aggravated identity theft. Judge Howard also sentenced co-defendant, Kiana Fina Alphonse (29, Covington, Georgia), to 36 months in federal prison for conspiracy to commit bank fraud, bank fraud, false representation of a Social Security number, and aggravated identity theft. The court also ordered Robinson and Alphonse to pay $9,463.32 in restitution to the victims they defrauded. Robinson had pleaded guilty on February 8, 2023, and Alphonse pleaded guilty on April 26, 2023.
According to court documents and public records, in 2019, deputies from the Columbia County Sheriff’s Office (CCSO) stopped a car driven by Robinson for a cracked windshield. Based on a probable cause search of the car, the CCSO located counterfeit Social Security cards and driver licenses in the identity of genuine individuals, genuine credit cards in the name of individuals and multiple phones. CCSO conducted a forensic examination of Robinson’s cellphone which determined that it contained text messages between Robinson and Alphonse depicting outlined instructions on how to fraudulently set up business accounts at banks using fraudulent documents for non-existent businesses, identification documents, and Social Security numbers.
Further investigation revealed that in 2019, Robinson and Alphonse obtained the personally identifiable information (PII) of multiple victims. The pair then obtained counterfeit driver licenses, purportedly from the states of Washington and Delaware, in the identity of the victims. The counterfeit driver licenses contained the PII of the victims, but a photo of Alphonse. Using the PII, including the Social Security numbers of the victims, the counterfeit driver licenses, and documents created for fictitious businesses, Alphonse visited multiple banks and set up fraudulent business bank accounts in the name of various victims. These bank accounts were then utilized as part of a scheme to defraud multiple victims involving the online purchase of nonexistent cars. Once the bank accounts received funds from victims, Robinson, Alphonse, and co-conspirators withdrew the funds for their own personal use.
Robinson appeared in federal court on November 3, 2022, pursuant to a writ bringing him to Jacksonville from Georgia State Prison where he is serving a prison sentence for violating parole on a fraud related crime. Robinson is also wanted on violation of probation warrants from South Carolina and Columbia County, Florida on two unrelated financial crime cases.
This case was investigated by the Columbia County Sheriff’s Office and the United States Secret Service – Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Former Police Officer Sentenced to 8 years in Prison for Theft of Firearms from Police Weapons Vault and Tampering with Multiple WitnessesRead the Press Release
SAN JUAN, Puerto Rico – Former police officer William Cintrón-Rivera, a.k.a. “El Kid/Kid” was sentenced to eight years in prison for the theft of 54 guns and thousands of rounds of ammunition from the Puerto Rico Police Bureau (PRPB), Guayama headquarters on July 17, 2019. The defendant was ordered to forfeit his position as a PRPB officer and ordered to pay $48,624 in restitution to the PRPB.
On January 20, 2021, a federal grand jury charged the defendant with multiple counts of firearms violations and tampering with three witnesses and he pleaded guilty in April of 2023.
According to court documents, on July 17, 2019, in the District of Puerto Rico, defendant Cintrón-Rivera stole 54 firearms from the PRPB, Guayama headquarters. At the time of the theft, defendant Cintrón-Rivera was a police officer in the PRPB. In addition, the defendant was charged with the possession of six of the stolen firearms and thousands of rounds of ammunition.
The investigation revealed that Cintrón-Rivera attempted to intimidate and corruptly persuade two individuals to provide false information to federal investigators relevant to the theft, such as Cintrón-Rivera’s whereabouts on the night of the crime. Cintrón-Rivera also attempted to intimidate and corruptly persuade a female to provide false information o federal investigators regarding: (a) the nature and duration of their relationship; (b) Cintrón-Rivera’s whereabouts during the timeframe of the theft; (c) the identity of an alleged informant; and (d) communications involving Cintrón-Rivera and her, including payment for an alleged cell phone.
Anyone with any information regarding any of the missing PRPB firearms is encouraged to contact the ATF at 1-800-ATF-GUNS.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico and Christopher Robinson, Special Agent in Charge for ATF, made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Puerto Rico Police Bureau are investigating the case.
Assistant U.S. Attorney Luis A. Valentin was in charge of the prosecution of the case.
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Former Mail Carrier and Co-Conspirator Sentenced to Federal Prison for Quarter-Million Dollar Identity Theft and Fraud Scheme Using Stolen MailRead the Press Release
INDIANAPOLIS- Robenson Fenelon, 31, and Squille Traxler, 30, of Indianapolis, have been sentenced to 54 months (4.5 years) and 15 months, respectively, in federal prison after pleading guilty to conspiracy to commit bank fraud and theft of stolen mail. Fenelon additionally plead guilty to aggravated identity theft.
According to court documents, from at least January 2019 through December 2020, Fenelon and Traxler conspired with mail carriers in a scheme to steal the identities of at least fifty victims in Fishers and Indianapolis and used that information to defraud financial institutions of a total of $244,222.93.
At the time of the offenses, Traxler was employed as a Mail Carrier with the U.S. Postal Service. Fenelon recruited Traxler to assist in identifying potential identity theft targets. Fenelon and Traxler used Traxler’s access to the mail to obtain the targets’ identity information, including names, dates of birth, social security numbers, addresses, phone numbers, and bank account numbers. Fenelon then used that information to access and take over the victims’ bank accounts or to open new bank accounts in the victims’ names.
Fenelon contacted the victims’ banks, purporting to the victims or their relatives, and requested a new debit or credit card for the victim’s account. For the newly established accounts, Fenelon applied online or over the phone for new accounts and credit cards. Fenlon and Traxler then stole the credit cards from the victims’ mail. Fenelon and Traxler used the cards to withdraw cash and make personal purchases. They stole checks from the mail and deposited them into the bank accounts they controlled.
“Fraud schemes using stolen mail cause significant hardship to innocent victims and undermine trust in a vital government service,” said United States Attorney for the Southern District of Indiana, Zachary A. Myers. “Fraudsters must be held accountable, especially those criminals who abuse the public’s trust in service of their own greed. We will continue to work diligently with the U.S. Postal Inspection Service and U.S. Postal Service Office of Inspector General to ensure that those who steal from the public pay a significant price.”
“Protecting the U.S. Mail and our customers is the core mission of the U.S. Postal Inspection Service. Postal Inspectors worked aggressively on this case to track down and identify the subjects involved with stealing mail and committing fraud. I commend the collective efforts of all agencies involved in bringing these individuals to justice,” said Rodney M. Hopkins, Postal Inspector in Charge of the U.S. Postal Inspection Service’s Detroit Division.
“These sentences represent our commitment to working with our law enforcement partners to maintain the integrity and trust in the U.S. Mail,” said Scott Pierce, Special Agent in Charge, United States Postal Service Office of Inspector General, Central Area Field Office. “The majority of postal employees are hard-working public servants dedicated to moving mail to its proper destination. The USPS OIG, along with the U.S. Attorney’s Office, remain committed to safeguarding the integrity of the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees.”
The United States Postal Inspection Service and U.S. Postal Service Office of Inspector General investigated this case. The sentences were imposed by U.S. District Court Judge, Sarah Evans Barker. Judge Barker also ordered that Fenelon and Traxler be supervised by the U.S. Probation Office for 3 and 2 years, respectively, following their release from federal prison and pay $244,222.93 in restitution.
U.S. Attorney Myers thanked Assistant United States Attorney MaryAnn T. Mindrum, who prosecuted this case.
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Former Chief Executive Officer of Strong City Baltimore Facing Federal Indictment for Fraudulently Obtaining More Than $1.4 Million in COVID-19 Cares Act LoansRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment charging Reginald Davis, age 40, of Baltimore, Maryland, for wire fraud and money laundering relating to the submission of fraudulent COVID-19 CARES Act loan applications. Davis is the former Chief Executive Officer of Strong City Baltimore (“SCB”), established in Maryland in 2015 as a non-profit organization serving individuals, community associations, institutions, and businesses in Baltimore. The indictment was returned on August 3, 2023, and unsealed today upon the arrest of the defendant.
Reginald Davis is expected to have an initial appearance in U.S. District Court in Baltimore at 1:30 p.m. this afternoon.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Davis allegedly stole well over one million taxpayer dollars intended to assist those suffering from the effects of the pandemic,” said United States Attorney Erek L. Barron. “It remains a top priority of my office to hold accountable those who took unfair advantage of the COVID-19 pandemic relief.”
“Organizations seeking to better the city of Baltimore entrusted Strong City Baltimore and Reginald Davis to help manage their money,” said Special Agent in Charge Thomas J. Sobocinski of the FBI's Baltimore field office. “Davis is accused of exploiting that trust by orchestrating this unscrupulous scheme and misusing federal CARES Act funds to cover up his criminal behavior. This indictment serves as a message that the FBI and our partners are working hard every day to protect taxpayers.”
“Mr. Davis’s indictment demonstrates IRS Criminal Investigation and our law enforcement partners commitment to holding accountable those who exploited pandemic related programs,” Kareem A. Carter, Acting Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Washington, D.C. Field Office. “We are committed to rooting out pandemic-related fraud and holding accountable anyone seeking to profit from the public health emergency.”
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program. PPP loan applications were processed and funded by participating lenders with a 100% guarantee by the Small Business Administration (“SBA”).
According to the three-count indictment, in January 2018, Non-Profit 1 entered into a fiscal sponsorship arrangement with SCB under which SCB provided administrative support for Non-Profit 1, including fiduciary services, governance, and funds management. In return, SCB received a regular payment from Non-Profit 1 for services rendered. The parties signed a Memorandum of Agreement that required SCB to deposit funds received on behalf of Non-Profit 1 into a restricted set of funding sources in SCB’s fiscal management system. Non-Profit 3 and Non-Profit 5 entered into similar fiscal sponsorship arrangements with SCB, including an agreement with each non-profit to deposit its funds into a set of restricted funding sources. SCB also had a fiscal sponsorship arrangement with Non-Profit 4 which contained an agreement by SCB to provide services with integrity and responsibility and noted that “funds must be disbursed according to strict IRS [Internal Revenue Service] standards.”
SCB’s Alleged Mismanagement of Non-Profit Client Funds
The indictment further alleges that SCB did not set up restricted funding sources for funds related to Non-Profit 1, Non-Profit 3 or Non-Profit 5, instead depositing those funds into SCB’s general checking account (“the 4885 account”). From August 2016 through December 2019, SCB received funds and improperly used client assets with donor restrictions to fund SCB’s own operating expenses, contrary to its agreement with the clients to safeguard those funds on the clients’ behalf.
For example, on January 24, 2018, Non-Profit 1 transferred approximately $451,866.19 to SCB for fiscal management. SCB entered the full amount of Non-Profit 1’s funds into the 4485 account and did not segregate the funds or make any attempt to ensure that the money was used only for Non-Profit 1. As detailed in the indictment, SCB used these funds to pay general expenses unrelated to Non-Profit 1. In April 2020, Non-Profit 1 merged with Non-Profit 2, a larger Maryland non-profit organization with a similar purpose. SCB provided regular statements of revenue and expenditures to Non-Profit 1 and, after its merger, to Non-Profit 2. These statements listed “ENDING FUND BALANCE” for Non-Profit 1 which were often far greater than SCB’s total assets. For example, on July 31, 2019, SCB reported to Non-Profit 1 that Non-Profit 1 had approximately $653,000 in an “ENDING FUND BALANCE.” But at that time, SCB’s total assets on hand were approximately $286,000. On January 31, 2020, SCB reported that Non-Profit 1 had approximately $827,000 in an “ENDING FUND BALANCE.” At that time, SCB’s total assets on hand was approximately $339,000, a shortfall of over $480,000.
On August 28, 2020, a member of the leadership team of Non-Profit 2 spoke by phone with Davis about ending Non-Profit 2’s fiscal relationship with SCB and creating a payment schedule for SCB to transfer back to Non-Profit 2 its total outstanding funds, which equaled approximately $600,000. Davis agreed that SCB would provide the total outstanding balance to Non-Profit 2 with an initial 25% payment, to be followed by four equal payments that were to be made by January 2021. Davis assured Non-Profit 2’s representative that SCB was able to meet this obligation but needed to manage the disbursements over a longer period of time because of financial demands across SCB’s “portfolio of organizations.” Despite numerous promises by Davis and other SCB employees, by March 2021, SCB had made only one payment to Non-Profit 2 of approximately $319,000 and still owed approximately $610,207.
March 13, 2021 PPP Loan
From January 2021 to March 2021, Davis allegedly submitted six PPP loan applications on behalf of SCB to Bank 1, a participating PPP lender, in order to cover shortfalls in SCB’s accounts that were owed to the fiscally-sponsored organizations. According to the indictment, these shortfalls had arisen because SCB improperly used assets with donor restrictions to pay SCB operating expenses, including salaries to its own employees. Each PPP loan application contained false statements, including varying amounts of average monthly payroll for SCB and the intended use of the loan funds. Davis electronically signed all the applications, certifying that any funds received would be used for allowed purposes. In furtherance of the scheme, Davis also caused SCB to open a new bank account (“the 3365 account”), although no funds were placed in the account. On May 13, 2021, Davis was notified that SCB’s application had been approved.
In anticipation of receiving the PPP loan funds, Davis sent an email to an SCB employee with a list of priorities. Davis allegedly stated, “…Among my list please it should include outstanding AP [accounts payable], outstanding rent and Non-Profit 1, and board member loans.” Payments for board member loans and debt settlement with Non-Profit 1 were not allowable uses of PPP funds.
On March 16, 2021, Bank 1 deposited approximately $1,426,922 in PPP funds into the 4485 account and on March 23, 2021, Davis caused $800,000 to be transferred from the 4485 account to the 3365 account. Prior to the transfer, the 3365 account had a negative balance of approximately $20.00, after being charged a bank fee for not having funds in the account. On March 29, 2021, the full balance of $799,980.00 was transferred from the 3365 account back to 4485 account. That amount represented the $800,000 of PPP loan proceeds minus the $20.00 debit in the 3365 account.
As detailed in the indictment, between March 26, 2021 and April 2, 2021, Davis and SCB used a total of approximately $625,405.64 in PPP loan funds to close out SCB’s fiscal sponsorship arrangement with Non-Profit 2, Non-Profit 3, and Non-Profit 4, all of which had terminated their fiscal sponsorship arrangements with SCB between June and September 2020. On April 9, 2021, $6252.39 was transferred from the 4485 account to Non-Profit 5. Neither Davis nor any other SCB employee informed their former non-profit clients that the funds they received were the proceeds of a PPP loan, or that there were any restrictions on the use of funds.
If convicted, Davis faces a maximum sentence of 20 years in federal prison for wire fraud and a maximum of 10 years in federal prison for each of two counts of money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The District of Maryland Strike Force is one of three strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
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.
United States Attorney Erek L. Barron commended the FBI and IRS-CI for its work in the investigation and thanked the Baltimore City Office of Inspector General for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Aaron S. J. Zelinsky and Joseph L. Wenner, who are prosecuting the case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber and Paralegal Specialist Jenna Lee.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Florida Woman Charged with Defrauding SNAP RecipientsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced the unsealing of an Indictment today charging GUYATREE SINGH with engaging in a years-long scheme to defraud at least approximately 120 low-income residents of New York City out of tens of thousands of dollars of their Supplemental Nutrition Assistance Program (“SNAP”) benefits. SINGH was arrested yesterday and will be presented today in the Southern District of Florida. The case has been assigned to U.S. District Court Judge Jed S. Rakoff.
U.S. Attorney Damian Williams said: “Over the course of years, Guyatree Singh is alleged to have cheated at least approximately 120 low-income, primarily elderly residents of New York City. Singh allegedly preyed on some of the most vulnerable people in our community, leaving the victims with no money to buy food. Today’s arrest demonstrates this Office’s commitment to ensuring that our justice system protects everyone from fraud.”
DOI Commissioner Jocelyn E. Strauber said: “The SNAP program provides food support to low-income New Yorkers. This defendant posed as a New York State employee to deceive more than a hundred SNAP recipients and gain access to their accounts, defrauding the recipients of about $50,000 in benefits, as charged in the Indictment. I thank HRA for referring the matter to DOI, and the Office of the United States Attorney for the Southern District of New York for their partnership in thwarting such predatory schemes.”
According to the allegations contained in the Indictment:[1]
From at least in or about April 2019 through at least May 2023, SINGH engaged in a scheme to defraud at least approximately 120 SNAP recipients living in the Southern District of New York — a majority of whom appear to be elderly — of their SNAP benefits. In total, SINGH defrauded the victims out of at least approximately $49,754.52 in benefits.
SNAP provides low-income individuals with electronic benefits that can be used like cash to purchase food. People eligible for SNAP benefits are given an electronic benefits transfer (“EBT”) card, which looks like a debit card and gives a person access to his or her SNAP benefits, allowing the SNAP recipient to buy groceries and other items at participating stores.
SINGH called SNAP recipients and pretended to be a New York State employee working for SNAP. SINGH then asked the victims for their personally identifiable information, including their dates of birth and social security numbers. Unbeknownst to the victims, SINGH then used this information to reset the personal identification numbers (“PIN”) on their EBT cards. Once the PINs were reset, SINGH used the victims’ EBT account numbers and new PINs to make purchases for herself at grocery stores in Florida using the victims’ SNAP funds.
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SINGH, 51, of West Palm Beach, Florida, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the DOI and the Special Agents of the U.S. Attorney’s Office.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Sowlati is in charge of the prosecution.
The charges contained 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 herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Singh IndictmentFinal Defendant in Methamphetamine Distribution Conspiracy Sentenced to 11 Years in Federal PrisonRead the Press Release
Paducah, KY – The final member of a three-man methamphetamine distribution conspiracy was sentenced yesterday for his role in the conspiracy. All three men were also convicted of possessing with the intent to distribute methamphetamine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Sheriff Ryan Norman of the McCracken County Sheriff’s Office made the announcement.
According to court documents, David Earl McElya, 44, a man with ties to both Paducah and Louisville, Kentucky, conspired with Patrick Alexander Lusco, 42, of Louisville, Kentucky, and Kevin Ray Roberts, 47, of Benton, Kentucky, to possess with the intent to distribute and to distribute more than 50 grams of methamphetamine in the Western District of Kentucky. All three men were also convicted of possessing with the intent to distribute over 50 grams of methamphetamine.
Yesterday, McElya was sentenced to 11 years in prison followed by 5 years of supervised release. Lusco was previously sentenced on November 8, 2022, to 12 years in prison followed by 5 years of supervised release. Roberts was also sentenced on November 8, 2022, to 10 years in prison followed by 5 years of supervised release. There is no parole in the federal system.
“This case demonstrates the importance of collaboration among law enforcement agencies at all levels – federal, state, and local,” stated U.S. Attorney Bennett. I commend our law enforcement partners for their outstanding investigative work in this matter and AUSA Hancock for his leadership during the successful prosecution of this case.”
This case was investigated by the DEA Paducah post of duty and the McCracken County Sheriff’s Office, with assistance from the Metropolis, Illinois Police Department, the Massac County, Illinois Sheriff’s Office, the Illinois Gaming Bureau, the Kentucky State Police, and the Greater Hardin County, Kentucky Drug Task Force.
Assistant U.S. Attorney Seth Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Federally-Qualified Health Center Pays $470K to Settle False Claims and Improper Billing AllegationsRead the Press Release
The United States Attorney for the District of Connecticut, the U.S. Department of Health and Human Services, Office of the Inspector General, and the Connecticut Attorney General today announced that OPTIMUS HEALTH CARE, INC., a federally-qualified health center (“FQHC”) based in Bridgeport, has entered into a civil settlement agreement with the federal and state governments and has paid a total of $470,093.93 to resolve allegations that it submitted false claims to the Connecticut Medicaid program, and received overpayments from Medicaid for ineligible services.
Optimus Health Care, Inc. (“Optimus”) has 23 locations in southwestern Connecticut. As an FQHC, Optimus receives patient revenues and grants from the federal and state governments.
The allegations against Optimus arise out of claims submitted to Connecticut Medicaid for dual-eligible beneficiaries. Dual-eligible beneficiaries are Medicare beneficiaries who are also eligible for Medicaid coverage. Some dual-eligible beneficiaries are eligible for, and receive, full Medicaid coverage in addition to their Medicare coverage. Other dual-eligible beneficiaries are known as Qualified Medicare Beneficiaries (“QMBs”). QMBs qualify for Medicaid to pay their Medicare co-pays, premiums, co-insurance, and deductibles.
The government alleges that Optimus submitted false claims to Connecticut Medicaid for dual-eligible beneficiaries with the incorrect Medicare denial codes. This caused Medicaid to pay claims it would have otherwise denied. The government also alleges that Optimus improperly billed Connecticut Medicaid for group therapy services for QMBs who were not eligible for reimbursement for those services.
To resolve its liability, Optimus paid $470,093.93 to the federal and state governments for conduct occurring between January 2014 and December 2020.
The False Claims Act allegations resolved by the settlement were originally brought in a lawsuit filed in the U.S. District Court in Connecticut by a relator, or whistleblower, under the qui tam provisions of the False Claims Act. These provisions allow private parties to bring suit on behalf of the government and to share in any recovery. The relator, a former employee of Optimus, will receive $62,787.78 as her share of the recovery. The case resolved by this settlement was captioned U.S. ex rel Migdalia Burgos, and the State of CT v. Optimus Health Care, Inc. (Docket No. 3:19-cv-652).
This matter was investigated by the Office of the Inspector General for the Department of Health and Human Services, and the Connecticut Office of the Attorney General. The case was prosecuted by Assistant U.S. Attorney Sara Kaczmarek and by Deputy Associate Attorney General Gregory O’Connell of the Attorney General’s Office.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Task Force at (203) 777-6311.
Federal Prosecutors, FBI, and Port of Seattle detail disturbing increase of sexual assaults on aircraftRead the Press Release
Seattle – With four federal criminal cases filed since the first of the year, and numerous sexual assault reports under investigation, federal law enforcement wants the traveling public to be alert and informed of the increasing number of reports of sexual assault and misconduct on aircraft. Acting U.S. Attorney Tessa M. Gorman and Special Agent in Charge of the FBI’s Seattle field office Richard Collodi joined Seattle Port Commissioner Toshiko Hasegawa at Seattle-Tacoma International Airport to raise awareness about the problem and the federal response.
“Since the first of the year, we have seen an increase in reports of sexual assaults on aircraft. It is quite unusual for us to have four filed cases as well as multiple active, but as yet uncharged, investigations in our office at one time,” said Acting U.S. Attorney Gorman. “We take these cases seriously and work with the FBI to investigate and prosecute them. Federal prison is the destination for those convicted of sexual abuse on an aircraft.”
“It is imperative for people to understand those who commit these types of crimes aboard aircraft will be held accountable,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “I’m concerned at the increase of these incidents and assure the traveling public the FBI and our partners will continue to investigate and prosecute any offender who victimizes someone on a plane.”
“We’re here today to stand up for travelers and to put would-be perpetrators on notice: Sexual assault is a crime everywhere and will not be tolerated. Not in the air, not on the ground, not on our watch,” said Port of Seattle Commissioner Toshiko Hasegawa. “The Port of Seattle is fully equipped and prepared to respond to all reports of sexual assault swiftly, severely, and with certainty. I am particularly grateful to the FBI for standing up for our passengers and for helping launch this public awareness campaign.”
Nationally the cases are rising, as well. In 2018, the FBI investigated 27 sexual misconduct cases aboard aircraft. Just four years later, in 2022 that number had more than tripled to 90 cases. 2023 is on pace to surpass the 90 cases, with 62 cases under investigation in the first half of the year.
The four filed federal cases in the Western District of Washington are:
U.S. v. Jack Roberson (23-cr-00123)
While flying from Atlanta to Seattle, the defendant, Jack Roberson, allegedly drank two double vodka tonics and appeared to fall asleep. He allegedly placed his hand on the 15-year-old victim’s thigh and slowly moved it up her thigh and under her skirt to her inner thigh. The victim reported to her guardian immediately and the defendant was taken into custody when the flight landed.
U.S. v. James Benecke (23-cr-00108)
The defendant, James Benecke, is accused of committing abusive sexual contact involving teenagers in two separate incidents. The first incident took place in April of 2023 as Benecke traveled from Alaska to Seattle. He is alleged to have touched the thigh and buttocks of a 16-year-old girl who was seated next to him. Two months later, while on a flight from Texas to Seattle, Benecke is alleged to have touched the inner thigh and buttocks of an 18-year-old girl.
U.S. v. Duane Brick (23-cr-00052)
The defendant, an airline mechanic, was flying on an aircraft of his employer, from Arizona to Seattle. He was seated next to the adult victim. He allegedly took her hand and placed it on his crotch while she appeared to be asleep after taking sleeping pills. He then touched her inner thigh, reached under her shirt, and attempted to reach into her pants. Trial is scheduled for September 11, 2023.
U.S. v. Munir Walji (23-cr-ooo11)
The defendant allegedly sexually assaulted a 15-year-old girl by touching her leg and genitals while aboard a flight from Atlanta to Seattle. The defendant is charged with Sexual Abuse of a Minor in Special Aircraft Jurisdiction and Abusive Sexual Contact in Special Aircraft Jurisdiction.
In each of these cases the public is reminded that the charges are allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
King County Sexual Assault Resource Center CEO Mary Ellen Stone noted that data shows young people are at highest risk of sexual assault – females between 16-19 are four times more likely than the general population to be victimized. Yet, young victims are the least likely to speak up for fear of escalating the bad behavior or causing trouble.
“Sexual assault can and does happen anywhere, including on planes and other public transit, and includes a spectrum of behaviors that include harassing comments, “upskirting,” unwanted touching, and rape,” said Mary Ellen Stone, Chief Executive Officer at the King County Sexual Assault Resource Center. “On aircraft, other passengers and crew can disrupt these behaviors, help hold offenders accountable, and begin a survivor’s long-term healing when they take a report seriously and understand not all survivors react the same.”
CEO Stone adds, “It’s natural to want to ignore these situations, but other passengers can send a strong message that sexually offending behavior won’t be tolerated by checking in with anyone you suspect is being victimized and offering help. Crews can take steps to separate the victim from the person causing harm, and above all, avoid minimizing any behavior that is making someone else uncomfortable.”
For free, confidential help or information, KCSARC’s 24-hour Resource Line is available at 1.888.99.VOICE (1.888.998.6423).
The FBI and U.S. Attorney’s Office has prepared a tip sheet attached to this press release.
_tips_for_travelers.pdfEssex County Woman Admits Role in Scheme to Harbor Non-U.S. Citizens Through Marriage FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman admitted conspiring to commit marriage fraud, U.S. Attorney Philip R. Sellinger announced today.
Regina Johnson, 59, of Newark, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court on Aug. 8, 2023, to one count of a superseding indictment charging her and others with conspiracy to harbor non-U.S. citizens by orchestrating fraudulent marriages between the non-citizens and U.S. citizens.
According to documents filed in this case and statements made in court:
From September 2016 through July 2019, Regina Johnson and her sister, Andrea Torres, arranged and facilitated sham marriages for non-U.S. citizens who wished to remain in the United States despite the lack of legal status or proper documentation. Torres and Johnson recruited U.S. citizen potential spouses and paid them a fee in exchange for those U.S. citizens entering into sham marriages with Torres’ and Johnson’s non-citizen clients.
Torres’ son, Philip Torres, also charged in the superseding indictment, participated in the scheme by officiating some of the sham marriages. Andrea Torres and Johnson arranged for the “couples” to obtain fraudulent marriage licenses and even arranged and charged their clients for wedding ceremonies and after parties that were staged to make the sham marriages appear legitimate. Andrea Torres and Johnson further advised their clients to open joint bank accounts and to meet frequently with their U.S. spouses. Clients were also advised to take photographs in a variety of locations and in different clothing to memorialize the relationship and to give the appearance of cohabitation, even though none of the clients ever resided or intended to reside with their U.S. spouses. Andrea Torres and Johnson then helped their clients complete immigration forms to obtain permanent residency on the basis of the materially false misrepresentations.
The charge of conspiracy to which Johnson pleaded guilty carries a maximum penalty of 10 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss resulting from the offense, whichever is greatest. Sentencing is scheduled for Dec. 14, 2023.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to the guilty plea. He also thanked U.S. Citizenship and Immigration Services for its assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek of the National Security Unit and Assistant U.S. Attorney Blake A. Coppotelli of the Economic Crimes Unit in Newark.
The charges and allegations contained in the superseding indictment against Andrea Torres and Philip Torres are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
johnson.sindictment.pdfElvaston, Illinois Man Sentenced to 300 Months in Prison Related to Conspiracy to Distribute MethRead the Press Release
DAVENPORT, Iowa – An Elvaston, Illinois man was sentenced yesterday to 25 years in federal prison for conspiracy to distribute 50 grams or more of methamphetamine.
According to public court documents, and evidence presented at sentencing, Randy Glenn Price, 63, was identified by law enforcement through a confidential informant, who purchased pound quantities of methamphetamine from Price. In 2022, Price received multiple pounds of methamphetamine from out-of-state sources and distributed it in and around Johnson County, Iowa. In total, Price was attributed with distributing 33,046 grams (33.05 kilograms) of ice/actual methamphetamine.
After completing his term of imprisonment, Price will be required to serve five years of supervised release. There is no parole in the federal system. The Court also levied a $4,000 fine against Price.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Johnson County Drug Task Force.
Corpus Christi resident sentenced for trafficking methRead the Press Release
CORPUS CHRISTI, Texas – A 23-year-old man has been ordered to federal prison following his conviction for possession with intent to distribute 210 grams of meth, announced U.S. Attorney Alamdar S. Hamdani.
Jacob Soliz pleaded guilty April 28.
U.S. District Judge Nelva Gonzales Ramos has now ordered Soliz to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard how the circumstances of Soliz’s arrest suggested he was selling large quantities of meth. In handing down the sentence, the court noted the severity of the crime.
On Sept. 4, 2022, Soliz was a passenger in a sedan driving in Corpus Christi around 11:30 p.m. Authorities conducted a traffic stop after observing the vehicle was traveling without any headlights activated.
Law enforcement then observed the smell of burnt marijuana and ultimately conducted an inspection of the vehicle. At that time, they discovered multiple baggies of meth totaling 210 grams, baggies of marijuana totaling approximately 150 grams and a loaded AR-15 rifle. They also discovered approximately $2,500 located in Soliz’s pocket.
At the time of his plea, Soliz admitted the meth and rifle belonged to him.
Soliz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Corpus Christi Police Department and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney (AUSA) Tyler Foster prosecuted the case. AUSA Barbara DePena handled the sentencing.
Convicted Felon Pleads Guilty to KidnappingRead the Press Release
BIRMINGHAM, Ala. – A convicted felon pleaded guilty today to kidnapping and being a felon in possession of a firearm, announced U.S. Attorney Prim F. Escalona and Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
Jeffrey Barton, 51, of Guinn, Alabama, pleaded guilty before U.S. District Court Judge Madeline H. Haikala to felon in possession of a firearm and kidnapping.
According to the plea agreement, in June 2022, the Cullman County Sheriff’s Office (CCSO) received a call from a man reporting that an individual, later identified as Barton, had been at his residence and forced his wife into a vehicle at gunpoint. A CCSO Deputy saw the vehicle the victim’s husband described leaving the driveway of the victim’s residence. When the female victim in the vehicle saw the CCSO deputy’s patrol car, she jumped out of the driver’s door and began running toward the deputy. The deputy saw Barton in the back seat. Barton got out of the vehicle with his hands above his head. Officers searched the vehicle and found a Smith & Wesson 9mm pistol on the ground next to the driver’s door.
The maximum penalty for being a felon in possession of a firearm is 10 years in prison. The maximum penalty for kidnapping is life in prison.
The ATF investigated the case, along with the Cullman County Sheriff’s Office. Assistant U.S. Attorney Kristy Peoples is prosecuting the case.
Clinton Man Charged Federally for CarjackingRead the Press Release
KNOXVILLE, Tenn. – On August 8, 2023, Special Agents of the Federal Bureau of Investigation (“FBI”) charged Shown White, 43, of Clinton, TN, in a federal criminal complaint with carjacking in violation of Title 18 U.S.C. § 2119. The complaint was issued by the Honorable Cynthia Richardson Wyrick, United States Magistrate Judge for the Eastern District of Tennessee. If convicted, White could face imprisonment of up to 25 years and other penalties. White is currently in state custody, and he will make his appearance in federal court at a later date.
According to documents filed with the court, it is alleged that White flagged down a waste collection truck for help after he crashed the vehicle, he was driving in the vicinity of 549 Henley Street in Knoxville. The driver of the waste collection truck stopped in the roadway to assist. Almost immediately, White jumped into the passenger side of the vehicle, held a knife to the driver’s throat, and instructed the driver to head south on Chapman Highway. While the driver was attempting to comply with White’s demands, a struggle ensued which led the driver to jump from the moving vehicle. White took control of the vehicle and continued driving into Sevier County until ultimately crashing the garbage truck into a business located on Dolly Parton Parkway.
U.S. Attorney Francis M. Hamilton III, of the Eastern District of Tennessee, and FBI Special Agent in Charge Joseph E. Carrico made the announcement.
This prosecution is the result of an ongoing investigation by the FBI, Knoxville Police Department, and Tennessee Highway Patrol.
Assistant United States Attorney Miriam Johnson will represent the United States.
Members of the public are reminded that a complaint constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Cheektowaga Man Pleads Guilty to Possession of 200,000 Images of Child PornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Michael P. Daly, 48, of Cheektowaga, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possession of child pornography involving a prepubescent minor. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in June 2019, the National Center for Missing and Exploited Children (NCMEC) received a report from Microsoft Bing that one of their users uploaded an image of child pornography. Subsequent investigation traced the image to Daly. On October 22, 2020, investigators executed a search warrant at Daly’s residence in Cheektowaga, seizing a laptop computer, a flash drive, and an iPhone. A forensic search of all three items recovered over 200,000 images and 95 videos of child pornography. Some of the images include prepubescent minors and depictions of violence.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Miraglia, the New York State Police, under the direction of Major Eugene Staniszewski, and the Cheektowaga Police Department, under the direction of Chief Brian Gould.
Sentencing is scheduled for December 8, 2023, at 9:30 a.m. before Judge Vilardo.
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Charleston Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Jaiesha Keyshara Morris, 18, of Charleston, pleaded guilty today to conspiracy to distribute methamphetamine and fentanyl.
According to court documents and statements made in court, for several months prior to March 10, 2023, Morris kept methamphetamine belonging to another person at her residence as part of a conspiracy with other people to distribute methamphetamine. Morris would communicate with the person who was selling the methamphetamine by cell phone to arrange drug-related transactions. On March 10, 2023, this person asked Morris to deliver an ounce of methamphetamine to an individual. Morris drove to the Sheetz in South Charleston and delivered the methamphetamine to the purchaser as instructed.
Morris is scheduled to be sentenced on December 14, 2023, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the U.S. Route 119 Drug Task Force, the West Virginia State Police, the Kanawha County Sheriff’s Office, and the United States Postal Inspection Service (USPIS).
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorneys Ryan A. Keefe and J.C. MacCallum are prosecuting the case.
The case is a result of “Operation Into The Woods,” a 10-month investigation of drug trafficking in Kanawha and Boone counties. Morris and several other individuals have been indicted including Toby Lee Graley, who pleaded guilty to conspiracy to distribute methamphetamine and fentanyl on August 1, 2023 and is awaiting sentencing. Law enforcement seized 120 grams of methamphetamine, four shotguns, and approximately $23,150 from Graley when he was arrested. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF 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. Today, 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. 2-23-cr-44.
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Charleston Man Sentenced for COVID-19 Relief Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Aalik Wilsher, 26, of Charleston, was sentenced today to three years of federal probation and ordered to pay $20,459.33 in restitution for receipt of stolen money. Wilsher admitted to a scheme to defraud the Paycheck Protection Program (PPP) of $20,459.33 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to court documents and statements made in court, on April 14, 2021, Wilsher applied for a PPP loan for his purported business, “Aalik Wilsher.” Wilsher admitted that he falsely certified that “Aalik Wilsher” was established in 2019 and was in operation on February 15, 2020. Wilsher further admitted to submitting a false IRS Form 1040, Schedule C, to state that “Aalik Wilsher” had earned $97,587 in gross income during 2019.
The CARES Act, enacted in March 2020, offered emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. This assistance included forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program. Businesses applying for PPP loans had to certify that the business was in operation on February 15, 2020, and were required to provide documentation showing their prior gross income from either 2019 or 2020.
Wilsher’s fraudulent PPP loan application was approved and $20,330 was electronically deposited from a financial institution in Florida to Wilsher’s bank account in Charleston, West Virginia, on April 30, 2021.
Wilsher later applied to have the fraudulent PPP loan and $129.33 in accrued interest forgiven. Wilsher admitted that he had not spent the loan proceeds on permissible business expenses. The SBA forgave Wilsher’s fraudulent PPP loan on December 13, 2021.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police-Bureau of Criminal Investigations (BCI) and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU).
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Jonathan T. Storage prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-51.
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Battle Creek Man Indicted for Possessing over Four Kilograms of Methamphetamine and Machine gunsRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten announced that a federal grand jury in Grand Rapids returned a superseding indictment charging Travon Deshaun-Roderick Mansker, 26, of Battle Creek, with possessing over four kilograms of methamphetamine intended for resale and 10 firearms as a felon. Two of the weapons had been modified to meet the federal definition of “machineguns.”
“Drugs and guns are a dangerous combination, and we are committed to getting illegal guns and drugs off of our streets,” said U.S. Attorney Totten. “The prevalence of machinegun conversion devices in the Western District is a particularly troubling trend that my office takes seriously.”
The charges arise from an April 27, 2023, search of a Battle Creek residence where investigators seized the drugs, firearms, approximately a thousand rounds of ammunition, various high-capacity magazines, pill presses, and other drug trafficking paraphernalia. A photograph of the evidence seized from the search is provided below:
In the superseding indictment, the grand jury alleges that on April 27, 2023, Mansker possessed methamphetamine that he intended to distribute to others. The superseding indictment also charges Mansker with possession of a machinegun for two firearms with different conversion devices installed and possession of a firearm by a felon for ten firearms, including a firearm silencer (a “firearm” under federal law). The superseding indictment is attached.
“This indictment should serve as a reminder that the DEA, and our law enforcement partners, will relentlessly pursue these individuals,” said Orville O. Greene, Special Agent in Charge of Detroit Field Division of the Drug Enforcement Administration. “Our combined efforts are to not only stop the illegal distribution of dangerous illicit drugs, but also to prevent the associated violence that plagues our communities.”
The defendant will be arraigned on the superseding indictment before U.S. Magistrate Phillip J. Green of the U.S. District Court for the Western District of Michigan. If convicted of the drug charge, Mansker faces a statutory mandatory minimum penalty of 10 years in prison with a maximum penalty up to life.
The case was investigated by the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations (HSI), and Battle Creek Police Department (BCPD), with additional support by the Federal Bureau of Investigations (FBI).
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mansker Travon Superseding Indictment###
Atlanta, Illinois Man Sentenced to 21 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
PEORIA, Ill. – An Atlanta, Illinois resident, Juan Esquivel Bernal, 54, of the 1700 block of 2250th Street, was sentenced on August 7th to 21 years imprisonment for conspiracy to distribute and possess with intent to distribute more than 50 grams of actual methamphetamine. Imprisonment will be followed by 5 years of supervised release.
At the sentencing hearing before U.S. District Judge James E. Shadid, the United States presented evidence that between February 2019 and May 2022, Bernal operated as the leader of a methamphetamine distribution group in the Central District of Illinois. He orchestrated shipments of methamphetamine directly from Mexico to his farm in Atlanta, Illinois, and used the farm to store large amounts of the drug. Bernal supplied methamphetamine to numerous other distributors. Between June 2021 and April 2022, the Drug Enforcement Administration conducted 13 controlled buys from the distributors working for Bernal, for a total of more than three kilograms of methamphetamine. Law enforcement officers executed a search warrant at Bernal’s farm in May of 2022, where they found firearms, digital scales, drug paraphernalia, and another approximately 5 kilograms of methamphetamine, for a total of more than 8 kilograms of highly pure methamphetamine. The investigation revealed that Bernal possessed firearms and threatened the lives of co-conspirators and their families to keep them from withdrawing from his drug distribution conspiracy.
Bernal and four co-defendants were indicted in May 2022. Bernal entered into a plea agreement in January 2023. He has remained in the custody of the United States Marshals Service since his arrest.
The statutory penalties for conspiracy to distribute and possess with intent to distribute actual methamphetamine are 10 years to life, followed by 5 years to life of supervised release.
Three of the four other co-defendants have either been sentenced or await sentencing:
Edgar Daniel Perez-Hernandez pleaded guilty and was sentenced in July 2023 to 48 months.
Maria Guadalupe Flores-Cano, a.k.a. “Lupita,” pleaded guilty and will be sentenced on September 13, 2023.
Juan Carlos Figueroa-Ramirez, a.k.a. “Max,” pleaded guilty and will be sentenced on November 15, 2023.
Edgar J. Tello, was indicted in May 2022, and is scheduled for a pre-trial conference on October 11, 2023. Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The DEA led the investigation, assisted by the Pekin Police Department; Peoria Police Department; Illinois State Police; Internal Revenue Service; Department of Homeland Security Investigations, Immigration and Customs Enforcement; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Peoria Multi-County Enforcement Group; Central Illinois Enforcement Group; Rock County, Wisconsin Sheriff’s Office; United States Postal Service; United States Marshals Service; National Guard Counter Drug; DCI Digital Evidence Recovery; and the Logan County Sheriff’s Office. Assistant U.S. Attorney Keith Hollingshead-Cook and former Assistant U.S. Attorney Katherine G. Legge represented the United States in the prosecution, with assistance of the Tazewell and Fulton County State’s Attorney’s Offices.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Arizona Man and Woman found Guilty of Conspiracy to Distribute a Controlled SubstanceRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a jury has convicted Rusty James Driscoll, age 39, and Shauna Marie Gross, age 62, both of Kingman, Arizona, of Conspiracy to Distribute a Controlled Substance following a four-day jury trial in federal district court in Sioux Falls, South Dakota. The verdict was returned on August 4, 2023.
The charge carries a maximum penalty of life in federal prison and/or a $10,000,000 fine, life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Driscoll and Gross were indicted by a federal grand jury in March of 2022.
In 2022, Driscoll, Gross, and other co-conspirators agreed amongst themselves to distribute methamphetamine in South Dakota. In carrying out their conspiracy, Driscoll and Gross shipped multiple pounds of methamphetamine from Arizona to be redistributed in South Dakota. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the SD Division of Criminal Investigation, Drug Enforcement Administration, U.S. Postal Inspection Service, IRS, and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Presentence investigation reports were ordered and sentencing dates have not been set. The defendants were remanded to the custody of the U.S. Marshals Service.
Anton “Tony” Lazzaro Sentenced to 21 Years in Prison for Child Sex TraffickingRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 252 months in prison followed by five years of supervised release for orchestrating a sex trafficking conspiracy in which he trafficked multiple minor girls, announced U.S. Attorney Andrew M. Luger.
The prosecution team, led by Assistant U.S. Attorneys Melinda Williams, Laura Provinzino and Emily Polachek, stated, “Anton Lazzaro was a predator who hid in plain sight. He was a sex trafficker who camouflaged his true nature with his wealth and privilege. Today, his crimes were laid bare, and justice was served.”
“Mr. Lazzaro targeted, manipulated, and sexually exploited young and vulnerable girls for his own gain without regard for their age or safety,” said Special Agent in Charge Alvin M. Winston Sr. “Today’s sentencing sends a strong message that those who commit such heinous crimes will be held accountable. The FBI prioritizes crimes of victimization and will leave no stone unturned to protect the vulnerable and bring every perpetrator to justice.”
“While it cannot erase the harm Mr. Lazzaro has done, today’s sentence holds him accountable and sends a clear message that we do not tolerate this type of criminal behavior from anyone, regardless of their wealth or privilege,” said Superintendent Drew Evans of the Minnesota Department of Public Safety Bureau of Criminal Apprehension.
As proven at trial, Anton Joseph Lazzaro, a/k/a “Tony” Lazzaro, 32, conspired with Gisela Castro Medina, 21, to recruit young girls – 15-year-olds and 16-year-olds – to have sex with him in exchange for cash and other items of value. Lazzaro met Castro Medina in May of 2020 through the Seeking Arrangements website, which is known as a “sugar daddy” website. Lazzaro directed Castro Medina to identify girls she knew and others on social media who would have sex with him for money. Lazzaro specified that he was looking for young girls of a certain skin color, petite body type, and those who were considered vulnerable, referring to them as “broken girls.” Castro Medina would show Lazzaro photographs of minor girls and if Lazzaro “approved” Castro Medina would provide the minor’s contact information to Lazzaro. Castro Medina told the minors that Lazzaro was an older guy with a lot of money, and that he wanted to be a sugar daddy to younger girls. For her role in recruiting multiple minor girls, Lazzaro paid Castro Medina more than $50,000.
As proven at trial, Lazzaro often sent cars, typically Ubers, to transport the minor girls to his luxury condo in the Hotel Ivy in downtown Minneapolis. At one point, Lazzaro sent a driver to pick up a group of 14-and 15-year-old girls from a slumber party in St. Michael, Minnesota. When minor girls came to his condo, Lazzaro would give them alcohol, flash stacks of cash, and offer the girls precise sums of money to perform various sex acts. Lazzaro would send the minor girls home with cash, vapes, alcohol, Plan B, cell phones, and other items of value. Lazzaro carried out this trafficking scheme from May 2020 through December 2020.
Following the execution of federal search warrants at Lazzaro’s condo on December 15, 2020, Lazzaro and Castro Medina discussed which of the minor victims spoke to law enforcement. As part of her guilty plea, Castro Medina admitted that in March 2021, she and Lazzaro agreed to pay off a 15-year-old victim to prevent her from talking to law enforcement about engaging in commercial sex with Lazzaro.
On March 31, 2023, following a 10-day trial before Chief Judge Patrick J. Schiltz, Lazzaro was found guilty of one count of conspiracy to commit sex trafficking of minors and five counts of sex trafficking of minors. Castro Medina pleaded guilty on December 19, 2022, to one count of conspiracy to commit sex trafficking of minors and one count of obstruction. She is scheduled to be sentenced on September 5, 2023.
In handing down the sentence, Chief Judge Schiltz commented on the “soulless, mechanical nature of Mr. Lazzaro’s crimes, like a sex trafficking assembly line,” adding that the only two people Mr. Lazzaro showed any remorse for were “himself and Jeffrey Epstein, who Mr. Lazzaro called ‘his brother.’”
This case is the result of a joint investigation by the FBI and the Minnesota Human Trafficking Investigators Task Force – led by the Bureau of Criminal Apprehension, with assistance from Homeland Security Investigations, the Minneapolis Police Department, the West Hennepin Public Safety Department, and the Wright County Sheriff’s Office.
Assistant U.S. Attorneys Melinda A. Williams, Laura M. Provinzino, and Emily A. Polachek are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
8 August 2023
Wilton Man Admits Operating Art Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that NICHOLAS P. HATCH, 29, of Wilton, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Sarala V. Nagala in Hartford to a fraud offense stemming from a scheme involving the sale of counterfeit paintings.
According to court documents and statements made in court, Hatch was the owner of Hatch Estate Services LLC, an estate sales company based in Norwalk. Between approximately April 2020 and January 2022, Hatch used various websites, including Estatesales.org, a website specializing in estate sales and auctions, to offer for sale purported paintings by the artist Peter Max. Hatch, who knew that the paintings were not authentic Peter Max paintings, used multiple aliases when interacting with purchasers through email during the sale process, and he made various representations as to the paintings’ authenticity, including providing certificates of the works’ authenticity.
Through this scheme, Hatch sold 145 fraudulent Peter Max paintings and defrauded 43 purchasers out of a total of $248,600.
Hatch pleaded guilty to mail fraud, which carries a maximum term of imprisonment of 20 years. Judge Nagala scheduled sentencing for October 30.
Hatch was arrested on a criminal complaint on May 9, 2023. He has been detained since July 14, 2023, after he violated the conditions of pre-trial release.
This investigation has been conducted by the Federal Bureau of Investigation and the case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Virginia Man Sentenced to Federal Prison for Conspiring to Impersonate Federal Law Enforcement OfficerRead the Press Release
WASHINGTON – Haider Ali, 36, of Springfield, Virginia, was sentenced today to 68 months in prison for his role in a fraud conspiracy that included bank fraud and the impersonation of federal law enforcement, in a scheme that bilked more than $750,000 from his victims. The sentence was announced by U.S. Attorney Matthew M. Graves, Acting Special Agent in Charge Emily Odom, of the FBI Washington Field Office’s Criminal and Cyber Division, Inspector General Dr. Joseph V. Cuffari, of the U.S. Department of Homeland Security, and Inspector in Charge Damon Wood, with the Washington Division of the U.S. Postal Inspection Service.
According to court documents, Ali and his co-conspirator, Arian Taherzadeh, 40, of Washington, D.C., impersonated federal officers, using fake identification to rent luxury apartments and cheat the owners out of rent, and to ingratiate themselves with legitimate members of law enforcement. Ali pleaded guilty in U.S. District Court, on October 5, 2022, to the federal charges of conspiracy and bank fraud, and to the unlawful possession of a large-capacity ammunition feeding device, a District of Columbia offense. In addition to the prison term, U.S. District Court Judge Colleen Kollar-Kotelly ordered 36 months of supervised release and restitution of $757,922.66.
“Deceptions like this do grave damage to the actual agents and officers who are on the street, dealing with the public whose trust is critical to their safety and success,” said U.S. Attorney Graves. “Fortunately, our law enforcement partners moved quickly to stop this defendant, expose his scam, and uncover his million-dollar bank fraud. As this sentence shows, impersonating a member of law enforcement is a serious offense. Those who pretend for the sake of exerting unlawful authority over the public, or for their own financial gain, will face significant consequences.”
“Impersonating federal officers is a serious crime. Ali used fake law enforcement credentials to cheat people out of money to fuel his greed and perpetuate his fake persona,” said Emily Odom, Acting Special Agent in Charge of the FBI Washington Field Office Criminal and Cyber Division. “Thanks to collaborative efforts with our law enforcement partners, we were able to quickly and effectively dismantle this sophisticated scheme, which not only degraded the operations of real law enforcement but also endangered the safety of the public.”
According to court documents, Ali and Taherzadeh operated a business called United States Special Police LLC (USSP), which was described as a private law enforcement, investigative, and protective services company, based in Washington. The two men represented themselves to law enforcement as investigators and/or special agents, claiming an affiliation with the Department of Homeland Security (DHS) which was, in fact, not true. The company was not associated in any way with the United States government or the District of Columbia and had never done business with the federal or D.C. governments.
As the scheme unfolded, Ali falsely claimed at various times that he was a member of the U.S. Department of Homeland Security and/or the U.S. Secret Service. He also falsely claimed that he participated in the capture of the wife of Joaquin “El Chapo” Guzman, that his family had a royal bloodline, and that he had a connection to a senior official in the Pakistani Intelligence Service. Taherzadeh, meanwhile, falsely claimed to be, among other things, a Special Agent with the Department of Homeland Security, a member of a multi-jurisdictional federal task force, a former United States Air Marshal, and a former Army Ranger.
Both men used these false claims to recruit others to join their “task force” or “unit,” which these individuals believed to be part of DHS and federal law enforcement. In furtherance of the scheme, Ali and Taherzadeh ingratiated themselves with employees of the U.S. Secret Service because it provided them with cover and aided in their scheme.
Ali and Taherzadeh used their assumed law enforcement personas and the business to maintain leases for multiple apartments and parking spaces for supposed law enforcement operations at a luxury apartment complex in Southeast Washington. These units included a penthouse where Ali and Taherzadeh possessed, among other things, a Glock handgun registered to Ali that was loaded with a large-capacity ammunition feeding device, surveillance equipment, law enforcement tactical gear and a machine capable of programming Personal Identification Verification (PIV) cards used to create false credentials. They also used their false identification with law enforcement to obtain security footage in the building, as well as a list of the building’s residents, as well as their apartment numbers and contact information.
Throughout their tenancy, no rent was paid on the leased apartments or parking garage. This resulted in a loss to the building of $295,277, and to the garage of $7,854.
Additionally, according to the plea documents, beginning as early as May 2017 and continuing through March 2021, Ali engaged in a bank fraud scheme in which he generated more than $1 million in gross receipts from one or more financial institutions. He used bank accounts that he and others maintained and controlled to falsely and fraudulently execute debit and credit card transactions.
Ali and Taherzadeh were arrested on April 6, 2022. Taherzadeh pleaded guilty on Aug. 1, 2022, to a federal conspiracy offense and two District of Columbia offenses: unlawful possession of a large-capacity ammunition feeding device and voyeurism. Taherzadeh is scheduled to be sentenced on December 1, 2023.
Following the pronouncement of the sentence, Ali was ordered remanded to begin his sentence effective immediately.
This case is being investigated by the FBI’s Washington Field Office, the Office of the Inspector General for the U.S. Department of Homeland Security, and the U.S. Postal Inspection Service. Valuable assistance was provided by the Metropolitan Police Department and the Naval Criminal Investigative Service It is being prosecuted by Assistant U.S. Attorneys Elizabeth Aloi and Joshua S. Rothstein of the Fraud, Public Corruption, and Civil Rights Section.
Valuable assistance has been provided by Assistant U.S. Attorney Christopher Tortorice and Paralegal Specialists Quiana Dunn-Gordon, and Lisa Abbe and former Paralegal Specialist Chad Byron of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorneys Kathleen Campbell and Evan Turgeon of the Department of Justice’s National Security Division.
Utah Man Sentenced for Hate Crime Attack of Three MenRead the Press Release
A Utah man was sentenced yesterday to 20 years in prison followed by five years of supervised release for his bias-motivated attack of three men at a family-owned business.
On Feb. 19, 2020, after a five day trial, a jury in Salt Lake City convicted Alan Covington for attacking three men with a metal pole because he believed the men were Mexican.
According to evidence presented at trial, on Nov. 27, 2018, Covington, armed with a metal pole and hatchet, entered a family-owned tire shop, Lopez Tires. Upon entering the shop, the defendant demanded to know if the men were Mexican. According to testimony at trial, the defendant shouted that he wanted to “Kill Mexicans” and then began swinging the metal pole at the business owner, his brother, and teenage son. Covington hit the teenage son with the metal pole, taking him to the ground and causing serious physical injury to his face. Covington continued his attack striking the father multiple times in the back and eventually turned his attack on the business owner’s brother, who was able to escape without injury and report the matter to police. Covington was apprehended by police near the tire shop, with a metal pole and a hatchet in his possession.
“This defendant brutally assaulted a family and attempted to kill a young man because he believed they were Mexican,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Such bias-motivated violence is fundamentally at odds with our most deeply held values. The Justice Department will continue to aggressively pursue and bring to justice those who commit such acts.”
“This was a horrific act of hate-motivated violence and there is no place for it in our state or country,” said U.S Attorney Trina A. Higgins for the District of Utah. “These victims are part of our community, and no one should ever have to fear for their safety because of their race or nationality. With Covington now behind bars, we hope the victims and their families can find peace and heal from this unspeakable act of hate.”
“We hope the sentencing provides some measure of justice for the victims, whose lives will never be the same because of Mr. Covington’s heinous actions,” said Special Agent in Charge Shohini Sinha of the FBI Salt Lake City Field Office. “Our country is rich in diversity and violence motivated by hate – like all violence – has no place here. The FBI will vigorously defend the civil rights of all in the communities we serve.”
Assistant Attorney General Clarke, U.S. Attorney Higgins and Special Agent in Charge Sinha made the announcement.
The FBI Salt Lake City Field Office investigated the case, with the cooperation of the Salt Lake City Police Department.
Assistant U.S. Attorney J. Drew Yeates for the District of Utah and Deputy Chief Rose Gibson of the Civil Rights Division’s Criminal Section prosecuted the case.
United States Orders Mewbourne Oil Company to Pay $5.5 Million and Reduce Unlawful Air Pollution from Oil and Gas Wells in New Mexico and Texas, Eliminating More than 11,000 Tons of Harmful Air Pollutants AnnuallyRead the Press Release
Mewbourne Oil Company has agreed to pay a $5.5 million penalty and to spend at least $4.6 million for projects to ensure 422 of its oil and gas battery pads in New Mexico and Texas comply with state and federal clean air regulations. These terms are in settlement of claims of unlawful operations alleged in a civil complaint filed today under the federal Clean Air Act and New Mexico state law. Mewbourne’s actions taken pursuant to the deal will eliminate more than 11,000 tons of harmful pollutants from the air each year.
“Good air quality is essential to the health of our communities, and we need to ensure that oil and gas facilities are properly designed, maintained and monitored in order to meet national standards,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will continue to work to improve air quality and public health, including by holding oil and gas production operations like Mewbourne accountable for their violations of federal and state law.”
“Today’s settlement will eliminate 11,000 tons of harmful air pollutants annually and ensure that Mewbourne complies with the Clean Air Act,” said Principal Deputy Assistant Administrator Larry Starfield of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “The result will be cleaner, healthier air for communities in New Mexico and Texas.”
“Compliance with air quality regulations is essential to ensure the health of our people and the protection of our environment,” said New Mexico Environment Cabinet Secretary James Kenney. “We will continue to conduct oil and gas investigations and aggressively enforce violations.”
The complaint, filed jointly by the United States on behalf of the EPA and the New Mexico Environment Department (NMED), alleges that, at more than 100 of its oil and gas production operations in New Mexico and Texas, Mewbourne failed to obtain required state and federal permits, failed to capture and control air emissions from storage vessels and failed to comply with inspection, monitoring and recordkeeping requirements. EPA and NMED identified the alleged violations through field investigations and repeated flyover surveillance conducted in 2019, 2020 and 2022.
In addition to paying a $5.5 million fine – to be shared equally by the United States and the State of New Mexico – the consent decree, filed together with the complaint, requires the company to take numerous steps to ensure that 422 battery pads covered by the decree and located in New Mexico and Texas are operated lawfully. New Mexico’s portion of the fines will be sent to the State of New Mexico’s general fund.
Mewbourne will also spend at least $3.6 million to implement extensive design, operation, maintenance and monitoring improvements, including installing new tank pressure monitoring systems that will provide advance notification of potential emissions and allow for immediate response action by the company.
The company’s compliance with the consent decree will result in annual reductions of more than 9,900 tons of volatile organic compounds (VOCs) and 1,300 tons of methane.
VOCs are a key component in the formation of ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. In addition, as a co-benefit of these reductions, the consent decree will result in significant reductions of greenhouse gas emissions. This includes reduction of methane – a powerful greenhouse gas – by more than 33,000 tons per year, measured as carbon dioxide (CO2) equivalent, which would be like eliminating the consumption of over 3.4 million gallons of gasoline. Greenhouse gases from human activities are a primary cause of climate change and global warming.
In addition to more immediate reductions in VOCs, Mewbourne has committed to spending at least $1 million to replace over 2,000 pollutant-emitting pneumatic devices with non-emitting devices on an accelerated schedule. This offset project will reduce VOC emissions over 15 years by approximately 4,500 tons beyond that required by existing regulation.
The Clean Air Act requires the EPA to set National Ambient Air Quality Standards (NAAQS) for criteria pollutants that are considered harmful to public health and the environment. Ozone is a criteria pollutant that is created when oxides of nitrogen (NOx) and VOC react in the atmosphere. VOC and NOx are emitted by oil and gas production facilities, such as those operated by Mewbourne. During the timeframes of Mewbourne’s alleged violations, air quality monitors/ in the relevant counties in New Mexico registered rising ozone concentrations exceeding 95% of the NAAQS for ozone. In counties where ozone levels reach 95% of the NAAQS, NMED is required by New Mexico state statute to take action to reduce ozone pollution.
Mewbourne is an independent oil and gas producer engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States. The company is a large producer in the Permian Basin, which is a shale oil and gas producing area located in southeast New Mexico and West Texas.
The Environment and Natural Resources Division’s Environmental Enforcement Section is prosecuting this case in conjunction with the New Mexico Environment Department and EPA Region 6.
This settlement is part of EPA’s National Enforcement and Compliance Initiative, Creating Cleaner Air for Communities by Reducing Excess Emissions of Harmful Pollutants.
The consent decree is available for public viewing at www.justice.gov/enrd/consent-decrees. The United States will publish a notice of the consent decree’s lodging with the U.S. District Court for the District of New Mexico in the Federal Register and will accept public comment for 30 days after the notice is published. The Federal Register notice will also include instructions for submitting public comment.
Tulsa Man Pleads Guilty to Threatening Violence at Tulsa VARead the Press Release
TULSA, Okla. –A Tulsa man who threatened to “murder people” at the Ernest Childers Outpatient Clinic (VA) in Tulsa pleaded guilty today in federal court, announced U.S. Attorney Clint Johnson.
Zachariah Kade McGuire, 32, pleaded guilty to possession of a firearm in a federal facility.
“McGuire threatened to kill staff at a federal facility and arrived prepared to execute that threat,” said U.S. Attorney Clint Johnson. “I want to thank the staff and officers at the Ernest Childers Outpatient Clinic in Tulsa for their quick actions that averted a tragedy and provided the evidence to prosecute this case.”
In his plea, McGuire admitted that he called the VA in Tulsa, and threatened to murder people if he was not timely prescribed medications. McGuire further admitted that within an hour of making that call, he entered the Tulsa VA with a loaded .357 revolver.
According to court documents, on Nov. 14, 2022, the defendant’s mother called to schedule an appointment for him at the clinic, which was set for Dec. 13, 2022.
Shortly after, McGuire called back and left a threatening voicemail message, which was reported to the Veterans Affairs Police.
After McGuire arrived at the Tulsa VA, officers made contact with him and asked if he had a weapon. He responded yes, and officers retrieved a .357 magnum revolver from McGuire’s front pocket. The firearm was loaded with six rounds of ammunition. Officers also recovered seven plastic zip ties from McGuire.
McGuire faces up to 5 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has not been set.
The Department of Veterans Affairs Office of Inspector General, Department of Veterans Affairs Police, Tulsa Police Department, and FBI are the investigative agencies.
Assistant U.S. Attorneys Robert T. Raley and David D. Whipple are prosecuting the case.
Three Men Involved in Methamphetamine and Fentanyl Ring SentencedRead the Press Release
Cole Douglas Herrick, age 40, of Casper, Wyoming, and Colorado residents Scott Alan Buchanan, age 44, and Chad Alexander Buchanan, age 48, were recently sentenced for their involvement in a drug trafficking ring that was responsible for bringing large quantities of methamphetamine and fentanyl into the Casper area. U.S. District Court Judge Alan B. Johnson imposed the following sentences:
- Cole Herrick pled guilty to conspiracy to distribute methamphetamine and fentanyl and was sentenced to 120 months’ imprisonment with five years of supervised release. He was also ordered to make community restitution in the amount of $500 and pay a $100 special assessment.
- Scott Buchanan pled guilty to conspiracy to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. He was sentenced to 204 months’ imprisonment with five years of supervised release. The judge also ordered him to make community restitution in the amount of $500 and pay a $300 special assessment.
- Chad Buchanan pled guilty to conspiracy to distribute methamphetamine and fentanyl, and possession with intent to distribute methamphetamine. He was sentenced to 144 months’ imprisonment with five years of supervised release. His sentence also included $500 for community restitution and a $200 special assessment.
According to court documents, the Wyoming Division of Criminal Investigation (DCI) began investigating Cole Herrick in August of 2022 when Casper Police Department officers found Herrick in a motel room with a significant quantity of methamphetamine. Herrick admitted distributing methamphetamine in Casper. DCI agents learned that Herrick frequently traveled to Denver, Colorado, to pick up methamphetamine and fentanyl from Chad Buchanan. Around September of 2022, Chad Buchanan was arrested for a probation violation. Herrick then started picking up methamphetamine and fentanyl from Chad’s brother Scott Buchanan. In December of 2022, agents stopped Scott Buchanan outside Casper and found 1.5 kilograms of methamphetamine, numerous fentanyl pills, and a firearm. The defendants were indicted by the grand jury in January 2023 and pled guilty in April and May. In total, the defendants were responsible for distributing more than 15 kilograms of methamphetamine and more than 100 grams of fentanyl.
This crime was investigated by the Wyoming Division of Criminal Investigation and the Casper Police Department.
Case No. 23-CR-00004-ABJ
Three Board Members of Failed Washington Federal Bank in Chicago Guilty of Falsifying Records and Obstructing RegulatorsRead the Press Release
CHICAGO — Three former board members of the failed Washington Federal Bank for Savings in Chicago have pleaded guilty in federal court to conspiring to falsify bank records to deceive the Office of the Comptroller of the Currency.
WILLIAM M. MAHON, 56, of Chicago, and GEORGE F. KOZDEMBA, 73, of Fort Myers, Fla., pleaded guilty to the conspiracy charge during a hearing Monday before U.S. District Judge Virginia M. Kendall. Mahon’s guilty plea also included a tax offense for willfully filing false income tax returns. Last week, JANICE M. WESTON, 65, of Orland Park, Ill., pleaded guilty to the conspiracy charge. Judge Kendall set sentencings for Oct. 20, 2023, for Weston; Dec. 11, 2023, for Mahon; and Dec. 12, 2023, for Kozdemba. The conspiracy charge is punishable by up to five years in federal prison. The additional tax offense against Mahon is punishable by up to three years.
Mahon, Kozdemba, and Weston were members of Washington Federal’s Board of Directors. Weston also served as the bank’s Senior Vice President and Compliance Officer. Washington Federal was closed in 2017 after the OCC determined that the bank was insolvent and had at least $66 million in nonperforming loans. A federal investigation led to criminal charges against 16 defendants, including charges against the bank’s Chief Financial Officer, Treasurer, and other high-ranking employees, for conspiring to embezzle at least $31 million in bank funds. Eight defendants have pleaded guilty or entered into agreements to cooperate with the government.
Much of the money was transferred to Chicago attorney ROBERT M. KOWALSKI and other individuals outside the bank without all of the required documentation and often without any documentation whatsoever. A jury earlier this year convicted Robert Kowalski on embezzlement and fraud charges. He is awaiting sentencing.
Robert Kowalski’s sister, JAN R. KOWALSKI, also an attorney, pleaded guilty and was sentenced in June to more than three years in federal prison for fraudulently enabling her brother to conceal more than $357,000 from creditors and the trustee in his bankruptcy case.
Last year, Chicago attorney PATRICK D. THOMPSON was convicted by a jury of making false statements to the Federal Deposit Insurance Corp. regarding the amount of money he received from Washington Federal via a purported loan and other unsecured payments. He was also convicted of filing tax returns in which he falsely deducted interest that he had not actually paid to Washington Federal. Thompson was sentenced to four months in federal prison.
When the OCC was evaluating Washington Federal’s loan portfolio prior to its failure, Mahon, Weston, Kozdemba, and others made and caused to be made false entries in bank records and provided them to the OCC with the intent to deceive the agency and obstruct its examination. They also falsified records to make it appear that Washington Federal was operating in compliance with banking rules and internal policies and controls.
The guilty pleas were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Vincent R. Zehme, Special Agent-in-Charge of the Chicago Region of the FDIC’s Office of Inspector General; Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Andrea Peacock, Special Agent-in-Charge of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the U.S. Trustee Program. The government is represented by Assistant U.S. Attorneys Michelle Petersen, Kristin Pinkston, and Brian Netols, and Special Assistant U.S. Attorney Jeffrey Snell.
Sixth and Final Defendant Sentenced to Prison for String of Violent Armed Carjackings and Firearms ViolationsRead the Press Release
MINNEAPOLIS – A Saint Paul man has been sentenced to 70 months in prison for his role in a string of violent armed carjackings and various firearms violations, announced United States Attorney Andrew M. Luger.
“Mr. Ballard and his five co-conspirators took part in a widespread and violent crime spree, including carjackings, shootings, and robberies, while touting their criminal activity on social media. With this sentence, all six men are now serving significant federal prison sentences,” said United States Attorney Andrew Luger.
Saint Paul Police Chief Axel Henry added the following: “We will not tolerate violence in our city and will leverage our partnerships with the ATF and U.S. Attorney’s Office, when possible, to hold violent offenders accountable when they prey on our community. This case is a good example of how these partnerships worked to make our city safer.”
According to court documents, between May and December 2020, Eric Troy Ballard, Jr., 21, along with co-conspirators Isaiah Stacy Alstad, 24, James Brock Williams, Jr., 22, Clifton Germaine Walker, Jr., 25, Jordan Sydney Shamah Rhodes, 24, and Joshoamei Deangelo Richardson, 22, maintained active membership in the street gang known as the “Top 5.” The purpose of the gang was to make money for its members through criminal acts, including thefts, robberies, and distribution and sale of controlled substances. Proceeds of the money obtained through the commission of criminal acts were distributed among the Top 5 members. Top 5 members would use, carry, and possess firearms to commit these criminal acts as well as carry out acts of violence against others, including shootings and assaults. Top 5 members used social media to discuss criminal activity, recruit new members, and display cash, firearms, controlled substances, and some carjacked vehicles. As part of the investigation, police seized ten firearms from the group, various narcotics, and cash.
According to court documents, on August 25, 2020, at approximately 2:30 a.m., a victim was carjacked by members of the group at gunpoint and pistol-whipped near the 1200 block of Jackson Street, in St. Paul. That same morning, at approximately 6:50 a.m., Top 5 members, including Ballard, carjacked a second victim at gunpoint in the parking lot of a restaurant near White Bear Avenue in St. Paul. At approximately 9:00 a.m. that same day, a third victim was carjacked by the group at gunpoint on Maria Avenue near Metropolitan State University in St. Paul. All six defendants were charged for their roles in these carjackings and related illegal possession and use of firearms during these violent crimes.
Ballard pleaded guilty on April 7, 2023, to one count of conspiracy to use, carry, and brandish firearms during and in relation to a crime of violence, namely aiding and abetting carjacking. Ballard was sentenced yesterday, August 7,2023, before Judge John R. Tunheim.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Saint Paul Police Department, the Minneapolis Police Department, the Columbia Heights Police Department, and the South Saint Paul Police Department.
This case was prosecuted by Assistant U.S. Attorneys Benjamin Bejar and Thomas Calhoun-Lopez.
Sioux Falls Man Charged with Sex Trafficking of an Adult by Force and CoercionRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Sioux Falls, South Dakota, man for Sex Trafficking of an Adult by Force and Coercion.
Odarie Massiah, age 33, was indicted in August of 2023. He appeared before U.S. Magistrate Judge Veronica L. Duffy on August 4, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July 1, 2020, and August 8, 2022, Massiah knowingly and intentionally recruited an adult female into conducting commercial sex acts, and financially benefited from doing so.
The charge is merely an accusation and Massiah is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sioux Falls Police Department and HSI. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Massiah was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Ship’s Operator, Captain, and Chief Engineer Sentenced for Environmental Crimes Aboard a Rhode Island-Bound Oil TankerRead the Press Release
PROVIDENCE –The Greek company that owned and operated the Galissas, its captain, and chief engineer were each sentenced in U.S. District Court in Rhode Island today for environmental crimes committed in February 2022, announced United States Attorney Zachary A. Cunha.
Zeus Lines Management S.A., (Zeus) owner/operator of the Gallissas, was sentenced by United States District Judge Mary S. McElroy to pay a total monetary penalty of $2.25 million, consisting of a fine of $1,687,500 and a community service payment of $562,500. The community service payment will go to the National Fish and Wildlife Foundation to fund projects to benefit marine and coastal natural resources located in the State of Rhode Island. Additionally, Zeus will serve a four-year term of probation, during which any vessels operated by the company and calling on U.S. ports will be required to implement a robust environmental compliance plan.
The Galissas’ captain and chief engineer were also sentenced to terms of probation.
During earlier proceedings in May 2023, Zeus admitted violating The Ports and Waterways Safety Act and The Act to Prevent Pollution from Ships. The Galissas’ captain, Master Jose Ervin Mahinge Porquez, a resident of the Philippines, admitted to violating The Ports and Waterways Safety Act; Galissas’ Roberto Cayabyab Penaflor, also a resident of the Philippines, admitted violating the Act to Prevent Pollution from Ships.
According to information presented in court, while the Galissas was conducting cargo operations in Rotterdam, the Netherlands in February 2022, crew members became aware that the vessel’s inert gas system became inoperable. The inert gas system is necessary to ensure that oxygen levels within the vessel’s cargo tanks remain at safe levels and do not pose a hazardous condition. Rather than remaining in Rotterdam until the inert gas system could be repaired, Zeus and the ship’s captain, Porquez, decided to instead sail to the United States, where a spare part would be delivered upon the vessel’s arrival.
On February 11, 2022, while crossing the Atlantic, Porquez submitted a “Notice of Arrival” to the U.S. Coast Guard which failed to report the hazardous condition. On February 15, 2022, the Coast Guard sent an email in preparation for inspection which inquired about the vessel’s inert gas system. Porquez responded but did not disclose the inoperable inert gas system. Upon arrival off the coast of Rhode Island on February 19, 2022, the vessel embarked a local ship’s pilot to sail the vessel closer to shore and take delivery of the spare part. Although the crew installed the spare part, the inert gas system remained inoperable. Porquez failed to report to the Coast Guard the hazardous condition that the vessel’s inert gas system was inoperable while the tanks were not gas free.
The following day, the U.S. Coast Guard boarded the Galissas to conduct an inspection. Only then did Porquez inform the Coast Guard that the inert gas system was inoperable. The Coast Guard immediately took measurements of the oxygen levels within the vessel’s cargo tanks, which registered more than double the maximum allowable levels. The Coast Guard then ordered that the vessel be moved further offshore so as to not endanger the port of Newport, Rhode Island.
Additionally, Zeus’ Operations Manager directed Porquez to create a logbook showing oxygen levels during the transatlantic voyage. Porquez had a logbook created that falsely indicated the cargo tanks were at safe oxygen levels when the vessel left the Netherlands and remained at safe levels during the majority of the vessel’s transit of the Atlantic Ocean. In reality, the crew had not taken any readings of the oxygen levels in the cargo tanks during the vessel’s voyage. The fraudulent logbook was presented to the U.S. Coast Guard during its inspection.
Additionally, in a separate infraction, Zeus and chief engineer Penaflor admitted that throughout the transatlantic voyage oily bilge water was illegally dumped from the Galissas directly into the ocean without being properly processed through required pollution prevention equipment. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel. They also admitted that these illegal discharges were not recorded in the vessel’s oil record book as required by law.
Penaflor ordered crew members under his supervision to discharge a total of approximately 9,544 gallons of oily bilge water from the vessel’s bilge holding tank directly into the ocean using the vessel’s emergency fire pump, bypassing the vessel’s required pollution prevention equipment. Penaflor instructed crew members on several occasions to not tell the Coast Guard about bypassing the pollution prevention equipment resulting in illegal discharges.
The case was prosecuted by Senior Trial Attorney Stephen Da Ponte of the Department of Justice’s Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney John P. McAdams for the District of Rhode Island, with assistance from Lieutenant Commander Paul J. Milliken from the U.S. Coast Guard District One Legal Office.
The U.S. Coast Guard Sector Southeastern New England and the U.S. Coast Guard Investigative Service investigated the case.
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Sequoyah County Resident Pleads Guilty to Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that James Timothy Mathis, of Muldrow, Oklahoma, age 41 and a felon, entered a guilty plea to one count of Felon in Possession of Firearm.
The Indictment alleged that on March 4, 2023, Mathis, who had been convicted of a crime punishable by imprisonment for a term exceeding one year, was found in possession of a .38 SPL caliber Smith & Wesson Bodyguard Airweight revolver. Individuals previously convicted of a crime punishable by imprisonment for more than one year are prohibited from possessing firearms or ammunition.
The charges arose from an investigation by the Sequoyah County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Jason A. Robertson, United States Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea at the hearing in Muskogee, Oklahoma, and ordered the completion of a presentence investigation report. Mathis was remanded to the custody of the U.S. Marshal pending sentencing.
Special Assistant United States Attorney Michael R. Pahl represented the United States.
Second Illinois Man Sentenced to Federal Prison for Possessing over 2 Pounds of Heroin and FentanylRead the Press Release
A man who possessed 975.7 grams of heroin and fentanyl was sentenced today to 10 years in federal prison.
Donald R. Owens, age 44, from Markham, Illinois, received the prison term after a March 15, 2023 guilty plea to one count of possession with intent to distribute a controlled substance, and aiding and abetting the same.
Evidence at the plea and sentencing hearings showed that Owens was driving a car that the Iowa State Patrol stopped for speeding. Mathew J. Moreno was a passenger in the vehicle. Owens fled from officers, and a high-speed chase followed before Owens ultimately crashed the vehicle. During the chase, someone threw a vacuum‑sealed package out of the car which contained 975.7 grams of heroin and fentanyl. Officers also found over $17,000 in cash in Moreno’s and Owens’s possession.
Owens was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Owens was sentenced to 120 months’ imprisonment. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
On July 10, 2023, Moreno was sentenced to 87 month’s imprisonment. Moreno must also serve a 5-year term of supervised release after the prison term.
Owens is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jason Norwood and Special Assistant United States Attorney Adam J. Vander Stoep and was investigated by the Iowa State Patrol, the Iowa County Sheriff’s Office, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-32.
Follow us on Twitter @USAO_NDIA.
Santa Fe Man Charged with Child Abuse in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Luis Xavier Rael made an initial appearance in federal court on an indictment charging him with abandonment and abuse of a child, assault resulting in substantial bodily injury to an individual who has not attained the age of 16 years, and assault with a dangerous weapon. Rael, 36, of Santa Fe, will remain in custody pending a detention hearing scheduled for Thursday, August 10, 2023.
According to the indictment, on January 19, 2021, Rael, a non-Indian, assaulted his stepson, John Doe, a 12-year-old Indian boy, with a belt and a tree branch because Doe failed to perform physical activities that Rael forced Doe to do as a result of Doe’s perceived misbehavior.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Rael faces up to 18 years in prison.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services. Assistant United States Attorney Zachary Jones is prosecuting the case.
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San Mateo Man Charged with Embezzling More Than $1.1 Million from San Francisco Law FirmRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted Jairo Tomas Santos with bank fraud, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. Santos was arrested on August 4, 2023, and appeared in federal court on August 7 to face the charges.
According to the indictment (CR 23-00230 WHA), filed July 25, 2023, Santos, 42, formerly of San Mateo, Calif., allegedly embezzled more than $1.1 million from his employer, a San Francisco-based law firm, where Santos worked as the office manager. According to the indictment, Santos began his embezzlement scheme no later than March 2016 and continued it through February 2023. As part of the scheme, Santos obtained checks from the victim law firm, filled out the payee line of those checks, addressing them to “Jairo Santos,” and signed each check with the signature of the law firm’s senior partner even though Santos was not authorized to do so. Santos then deposited these checks into his personal checking accounts at Wells Fargo Bank.
Between March 9, 2016, and February 2023, Santos allegedly deposited approximately 806 unauthorized checks from the victim law firm made payable to Santos into his personal checking accounts. The total value of these unauthorized deposits was approximately $1,191,683. Further, as part of the scheme to defraud, Santos made and deleted entries in the general ledger for the victim law firm that concealed the fact that the payments were made for Santos’s own use. The indictment further alleges that Santos deposited these checks from the victim law firm knowing that the payments were not authorized by the firm or its senior partner and knowing that they exceeded the amounts he was legitimately owed by the firm for his salary and expenses.
In sum, the indictment charges Santos with three counts of bank fraud, in violation of 18 U.S.C. § 1344. Santos’s initial San Francisco federal district court appearance is scheduled for August 22, 2023.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Santos faces a maximum sentence of 30 years in prison, and a fine of $1,000,000, plus restitution, if appropriate, for each violation of 18 U.S.C. § 1344. The court also may order an additional term of supervised release to begin after a prison term as part of any sentence. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case, with the assistance of Elizabeth Kim. The prosecution is the result of an investigation by the FBI.
santos_jairo_indictment.pdfSaint George Man Sentenced to 2 Years in Federal Prison for Selling Untraceable Firearms Without a LicenseRead the Press Release
CHARLESTON, SOUTH CAROLINA — Jerome Daniel Sanders, 44, of Saint George, was sentenced to 2 years in federal prison after pleading guilty to dealing privately manufactured firearms without a license and possessing a firearms silencer in violation of the National Firearms Act.
Evidence presented in court established that Sanders began advertising non-serialized privately manufactured firearms for sale online in 2020. During the investigation, ATF agents discovered that Sanders used specialized manufacturing equipment to mass-produce these untraceable firearms and then sell them without a federal firearms license. Between 2020 and 2022, Sanders listed 112 of these firearms for sale online and made several other in-person sales, including to undercover ATF agents. Sanders also sold a homemade fully functional firearms silencer to an undercover ATF agent during the investigation.
On June 3, 2023, federal agents conducted a search warrant at Sanders’ residence and recovered 35 firearms with serial numbers, 28 firearms without serial numbers, a cutting machine and drill press used to manufacture firearms, $20,000 in cash, and various other firearm manufacturing paraphernalia.
“Untraceable firearms in the hands of dangerous persons pose a significant threat to the safety of our communities,” said U.S. Attorney Adair F. Boroughs. “The U.S. Attorney’s Office will investigate and prosecute those who illegally manufacture untraceable firearms and sell them for profit without a license.”
“While it is legal to build a firearm for personal use, those engaged in the business of manufacturing and selling firearms without a federal firearms license are breaking the law and threatening our public safety,” said ATF Special Agent in Charge Bennie Mims. “Individuals conducting business in this unlawful manner often put firearms in the hands of prohibited individuals. These firearms are also almost impossible to trace, which can impact investigations involving violent gun crime.”
United States District Judge David C. Norton sentenced Sanders to 2 years in prison, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system. The Court also ordered Sanders to forfeit his proceeds, firearms, and manufacturing equipment as part of the judgment.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI) Low Country Violent Crime Task Force, and Dorchester County Sheriff’s Office investigated the case. Assistant United States Attorney Chris Lietzow prosecuted the case.
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Ringleader of Group that Laundered Money Stolen from Romance Scams and Other Swindles Sentenced to Nearly 6 Years in PrisonRead the Press Release
LOS ANGELES – A New York City man has been sentenced to 70 months in federal prison for leading a conspiracy that laundered money stolen from victims of romance scams and business email compromise scams, causing a total loss of nearly $1 million, the Justice Department announced today.
Okechukwu Nwofor, 32, of Brooklyn, New York, was sentenced on Monday by United States District Judge Stephen V. Wilson, who also ordered him to pay $392,296 in restitution. During Monday’s sentencing hearing, Judge Wilson described Nwofor as being the “kingpin” of the scheme as well as the “personification of evil.”
Nwofor pleaded guilty on February 21 to one count of conspiracy to commit money laundering.
In his plea agreement, Nwofor admitted to leading a money laundering conspiracy from at least July 2018 to August 2019. Nwofor used a network of individuals who received fraudulent proceeds obtained from the victims of romance and business email compromise scams. Once the illicitly obtained funds were received, Nwofor and his co-conspirators quickly withdrawn or transferred into accounts they controlled.
To accomplish this scheme, Nwofor opened bank accounts in his name and the name of an Albany, New York-based company he founded, Juboy New Generation Inc. Using these bank accounts as well as others controlled by his co-conspirators, Nwofor regularly laundered money stolen by his co-conspirators via romance scams and business email compromise scams, which were sent to them from victims via interstate wires.
Nwofor typically charged his co-conspirators approximately 20% of the incoming funds, and then distributed a portion of the remaining funds to his accomplices and others.
The total losses in this scheme exceeded $930,000.
For example, in September 2018, a romance scam victim, who was a Pasadena resident, wired approximately $19,000 to a New York-based bank account controlled by one of Nwofor’s accomplices. Over the course of three days, this accomplice – at Nwofor’s direction – wired approximately $16,140 of the victim’s stolen money to a Nwofor-controlled bank account.
“[Nwofor] and his co-conspirators’ fraudulent conduct has left many of the victims in dire straits, including one victim’s inability to care for her disabled son, the foreclose of another’s home, and even one victim tragically taking her own life,” prosecutors argued in a sentencing memorandum.
Four other defendants in this case admitted their roles as money mules and pleaded guilty to conspiracy to commit money laundering. Three of them received probationary sentences and one awaits sentencing.
The FBI investigated this matter and previously has issued public service announcements urging the public to beware of romance scams and business email compromise scams.
Assistant United States Attorneys Ali Moghaddas of the Major Frauds Section and Andrew M. Roach of the Cyber and Intellectual Property Crimes Section prosecuted this case.
Rapid City man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Possession with Intent to Distribute Methamphetamine. The sentencing took place on August 4, 2023.
Scott Deisinger, 52, was sentenced to five years in federal prison, followed by four years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. He also forfeited his interest in three firearms and accompanying ammunition. Deisinger was indicted for Possession with Intent to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person by a federal grand jury in October of 2022. He pleaded guilty on April 14, 2023.
On August 7, 2022, Rapid City Police Department pulled over a vehicle that had been reported stolen. Deisinger was the driver and sole occupant. During a search of the vehicle, law enforcement located marijuana, approximately 90 grams of methamphetamine, items indicative of drug distribution, and three firearms. Two of the firearms had been reported stolen.
This case was investigated by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Unified Narcotics Enforcement Team, which is a local drug task force comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
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.
Deisinger was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Illegal Firearm PossessionRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on August 4, 2023.
Zachary Kirschenmann, 27, was sentenced to three years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. He also forfeited his interest in firearms seized on August 1, 2022.
Kirschenmann was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in October of 2022. He pleaded guilty on April 28, 2023.
On August 1, 2022, Rapid City Police Department stopped a vehicle driven by Zachary Kirschenmann. Officers conducted a search of the vehicle and located two firearms, a ballistics vest, several rounds of .45 caliber ammunition, a lockbox with assorted ammunition, and firearm optics. A check of the firearms located showed one of the pistols had previously been reported stolen. The two firearms were located in a backpack along with multiple forms of documentation belonging to Kirschenmann. Due to felony convictions in South Dakota, Kirschenmann is not legally allowed to possess firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Unified Narcotics Enforcement Team, which is local drug task force comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
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.
Kirschenmann was immediately remanded to the custody of the U.S. Marshals Service.
Pittsburgh Resident Pleads Guilty to Possession of Material Depicting the Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Eric G. Olshan announced today.
Troy D. Arnold, age 57, pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that on or about August 15, 2022, Arnold possessed material depicting the sexual exploitation of minors, including images of prepubescent minors or minors who had not attained 12 years of age.
Judge Colville scheduled sentencing for December 6, 2023. The law provides for a total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carl J. Spindler is prosecuting this case on behalf of the government.
Homeland Security Investigations conducted the investigation that led to the prosecution of Troy D. Arnold.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pittsburgh Resident Indicted on a Charge of Theft of Funds from the Social Security AdministrationRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of theft of funds from the Social Security Administration, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Theodore George Mills, 40, of Pittsburgh, Pennsylvania as the sole defendant.
According to the Indictment presented to the court, from March 2012 through May 2019, Mills accessed the Social Security benefits that were legally due to his late mother, who had died in February of 2012. Over the period of the indictment, it is alleged that Mills took more than $60,000 in social security benefits to which he was not entitled.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000, and a term of supervised release of not more than 3 years; or any or all of the above. 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 Office of the Inspector General of the Social Security Administration conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ontario County Man Going to Prison for Production of Child Pornography and Methamphetamine ConspiracyRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Timothy Wright, 33, of Phelps, NY, who was convicted of production of child pornography and conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of methamphetamine, was sentenced to serve 240 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Melissa M. Marangola and Katelyn M. Hartford, who handled the case, stated that in July 2019, Snapchat reported a cybertip to the National Center for Missing and Exploited Children involving a Snapchat subscriber who uploaded two files of suspected child pornography. A subsequent investigation determined that the Snapchat subscriber was Timothy Wright. On May 18, 2020, the New York State Police executed a search warrant at Wright’s residence and seized multiple electronic devices, including a cell phone, a laptop, and a hard drive. A forensic analysis of the electronic devices uncovered approximately 8,462 images and video files of child pornography. These included a video and images of Wright sexually abusing a minor child.
On July 29, 2020, Wright provided methamphetamine to his wife and co-defendant Alicia Wright who then sold the methamphetamine to an undercover police officer. After the controlled purchase was complete, the Ontario County Sheriff’s Office executed a search warrant at the Wrights’ residence on Bear Street in Phelps, NY. Investigators recovered approximately $10,000 in United States currency, approximately 64 grams of methamphetamine, and a digital scale. Alicia Wright was charged and convicted and sentenced to serve one year in prison.
The sentencing is the result of an investigation by the New York State Police, under the direction of Major Brian Ratajczak, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
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Ohio Man Sentenced to More Than 11 Years in Prison for Drug and Firearm CrimesRead the Press Release
CHARLESTON, W.Va. – Thomas Matthew Blankenship., 39, of Akron, Ohio, was sentenced today to 11 years and eight months in prison, to be followed by five years of supervised release, for possession with intent to distribute 40 grams or more of fentanyl and a quantity of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on June 10, 2022, law enforcement officers served arrest warrants on Blankenship as he left a residence in the Pecks Mill area of Logan County, West Virginia. After he was placed in handcuffs, officers found approximately 95 grams of fentanyl, 11 grams of methamphetamine, and a loaded 9mm pistol on his person. Blankenship admitted that he intended to distribute the drugs, and that he possessed the pistol in order to protect himself, the drugs, and any money he made from selling the drugs.
Blankenship has a long criminal history that includes nine prior felony convictions, including for felonious assault, improperly discharging a firearm at or into a habitation, tampering with evidence, trafficking in heroin, felon in possession of a firearm, and failure to comply with an order or signal of a police officer.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the Logan County Sheriff’s Office.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-197.
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North Carolina Gang Investigators Association Recognizes District Employee and Community Organization for Their WorkRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that a U.S. Attorney’s Office employee and a community organization in Asheville were recognized by the North Carolina Gang Investigators Association (NCGIA) today, at the annual Gangs Across the Carolinas conference in Winston-Salem.
The NCGIA is an association of law enforcement and criminal justice professionals, dedicated to the prevention of gang-related activity within the state of North Carolina. Each year, NCGIA hosts the Gang Free North Carolina (GFNC) Awards, to recognize the outstanding accomplishments of law enforcement personnel, community programs, and criminal justice professionals in the Carolinas for their work in their field.
This year, the NCGIA recognized Shirley Rutledge who works as a Victim Witness Coordinator in the U.S. Attorney’s Office and is responsible for providing services to victims and witnesses of federal crimes. Ms. Rutledge is the recipient of the NCGIA’s Civilian of the Year Award, in recognition of her exemplary work with the Emergency Witness Assistance Program (EWAP). The program provides emergency services and assistance to witnesses and helps them participate in the prosecution of federal cases. As part of her duties, Ms. Rutledge works to ensure that federal witnesses receive the support and services they need throughout the litigation process.
“Shirley is a dedicated public servant whose work with witnesses is vital to the successful prosecution of federal cases,” said U.S. Attorney King. “Shirley has a thorough knowledge of the EWAP program and always goes the extra mile to ensure that witnesses are treated fairly and respectfully and they are afforded all the protections and services they need to help federal prosecutors with their cases. Shirley’s skills are invaluable to my Office and to law enforcement, and her work enables us to continue to make cases against the most violent offenders and hold criminals accountable for their actions.”
The NCGIA also recognized Keynon Lake and his organization “My Daddy Taught Me That” (MDTMT), for its work with young males in the greater Asheville area. MDTMT is a youth development program designed to support young men through advocacy, education, and mentoring. The program focuses on helping adolescent males to transition successfully into adulthood by cultivating and developing strong interpersonal skills, good decision-making, acceptance of responsibility, and accountability for their actions.
“Mr. Lake and his organization provide important youth intervention and development services to underserved communities in Asheville,” said U.S. Attorney King. “I want to thank Mr. Lake for his outstanding work in the area of youth and community development and violence prevention. His work with young people complements law enforcement efforts to increase the health, safety and well-being of those we serve, and fulfil our mission to keep communities strong and thriving.”
Additional information about the U.S. Attorney’s Office Victim Witness Assistance Program can be found here.
New Orleans Man Pleads Guilty to Federal Gun and Drug ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – DANQUELL MILLER, age 43, a resident of New Orleans, Louisiana, pled guilty on August 3, 2023 to one count of possession a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). He will face a sentence of not less than five years and not more than life in prison, a fine of not more than $250,000.00 dollars, a term of supervised release of not more than 5 years, and a mandatory special assessment fee of $100, announced U.S. Attorney Duane A. Evans.
According to public records, MILLER, was apprehended by New Orleans Police Department officers after a foot chase where he discarded a firearm and several types of illegal narcotics.
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.
This case was investigated by the United States Federal Bureau of Investigation and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Maurice E. Landrieu, Jr. of the Narcotics Unit.
Navajo Man Pleads Guilty to Second Degree MurderRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Marc Clark pled guilty to second degree murder. Clark, 46, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury indicted Clark on Nov. 17, 2021. According to court records, Clark drove with three others, including John Doe, also an enrolled member of the Navajo Nation, to a gas station in Shiprock so that John Doe could fill up a gas can. After the group parked the vehicle, John Doe and Clark got out and John Doe entered the store to pay for gas. While John Doe was inside, Clark began arguing with John Doe’s girlfriend, who was in the rear seat of the vehicle. As the argument escalated, Clark unsuccessfully attempted to pull John Doe’s girlfriend out of the car. During the struggle, Clark slapped and punched her multiple times through the open window. In response to the assault, the driver of the vehicle drove away, leaving Clark in the parking lot. When John Doe walked out of the store, he approached Clark, and the two men began talking. As they were talking, Clark drew a knife from his pocket and suddenly and without warning stabbed John Doe in the neck.
John Doe was taken to the trauma care unit at the Northern Navajo Medical Center, where he passed away. Clark was apprehended by the Navajo Police Department at a laundromat near the gas station. The knife he had stabbed John doe with was on his person at the time.
Under the terms of the plea agreement, Clark faces between 23 and 27 years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorneys Matthew J. McGinley and Paul J. Mysliwiec are prosecuting the case.
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Myrtle Beach Man Pleads Guilty to Wire Fraud and Tax FraudRead the Press Release
FLORENCE, SOUTH CAROLINA —Troy Benjamin Bittner, 54, of Myrtle Beach, has pleaded guilty in federal court to wire fraud and filing a false tax return.
Evidence obtained in the investigation revealed that from November 2020 to December 2021, during the COVID-19 pandemic, Bittner was employed as a general manager at the Carolina Pines RV Resort in Conway, South Carolina. During that time, when it was not uncommon for guests to cancel reservations, he fraudulently generated $828,516.00 in customer refunds that were neither authorized nor requested by guests for completed reservations. After generating the fraudulent refunds, Bittner then wired the refunds to his personal financial accounts. In addition, on February 27, 2022, Bittner electronically filed with the IRS a 2021 Form 1040 in which he substantially understated his total income for calendar year 2021, resulting in a tax loss of $270,686.00.
Bittner faces a maximum penalty of 20 years in federal prison. He also faces a fine of up to $250,000 or the greater of twice the gross gain or gross loss of the offense, restitution, and 3 years of supervision to follow the term of imprisonment. United States District Judge Joseph Dawson, III accepted the guilty plea and will sentence Bittner after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.
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 United States Secret Service (USSS), United States Postal Inspection Service (USPIS), Federal Bureau of Investigation (FBI), and Internal Revenue Service (IRS)-Criminal Investigation. Assistant U.S. Attorney Lauren Hummel is prosecuting the case.
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Multiple People Indicted for Meth TraffickingRead the Press Release
KANSAS CITY, KAN. – A federal grand jury in Kansas City returned an indictment charging multiple people for their alleged involvement in a conspiracy to distribute methamphetamine within the state of Kansas and elsewhere between February 2020 and July 2023.
According to court documents, Jose Roman, 43, Marcos Valencia Jr, 32, Ezequil Castro, 37, Juan Gonzalez (all of Kansas City, Kansas), Manuel Alvarez, 28, of Seneca, Manuel Faudoa, 23, of Dodge City, and Gerardo Sierra-Martinez, 21, of Kansas City, Missouri, are charged with one count of conspiracy to distribute and possess with intent to distribute methamphetamine.
Roman is also charged with five counts of distribution of methamphetamine, and one count of money laundering.
Sierra-Martinez is charged with two counts of money laundering for allegedly sending money wire transfers totaling $55,500 to a person in Mexico City, Mexico in order to promote unlawful activity. He is also charged with one count of distribution of methamphetamine.
Gonzalez and Faudoa are charged with two counts of distribution of methamphetamine, and Alvarez is charged with one count of distribution of methamphetamine.
The Federal Bureau of Investigation (FBI), the Jackson County, Missouri Drug Task Force, the Kansas City, Missouri Police Department, the Kansas City, Kansas Police Department, Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the Nebraska Highway Patrol, and the Midwest High Intensity Drug Trafficking Areas (HIDTA) Program are investigating the case.
Assistant U.S. Attorney Trent Krug is prosecuting the case.
OCDETF Strike Force Cases
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the OCDETF Kansas City Metro Strike Force is to disrupt and dismantle major criminal organizations and subsidiary organizations, including criminal gangs, transnational drug cartels, racketeering organizations, and other groups engaged in illicit activities that present a threat to public safety and national security and are related to the illegal smuggling and trafficking of narcotics or other controlled substances, weapons, humans, or the illegal concealment or transfer of proceeds derived from such illicit activities in the Western District of Missouri and District of Kansas. The OCDETF Kansas City Metro Strike Force is comprised of agents and officers from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Kansas City, Missouri, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service (USMS), the United States Attorney’s Office for the District of Missouri (USAO-WDMO), the United States Attorney’s Office for the District of Kansas (USAO-KS), the Drug Enforcement Administration (DEA), the Internal Revenue Service/Criminal Investigation Division (IRS/CID), the United States Secret Service (USSS), and the United States Postal Inspection Service (USPIS), and the prosecution is being led by the Office of the United States Attorney for the District of Kansas.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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