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28 July 2023
Predator Sentenced to More Than 35 Years for Coercion and Enticement of a ChildRead the Press Release
TULSA Okla. – A Sand Springs man was sentenced July 27 to more than 35 years in prison for coercion and enticement of a child and one count of abusive sexual contact in Indian Country, announced U.S. Attorney Clint Johnson.
Jeremy Nicholas Botonis, 45, was convicted on Friday, May 6, 2022, by a federal jury following two hours of deliberation.
U.S. District Judge Stephen Murphy has now sentenced Botonis, to 35 years and four months for coercion and enticement of a child and 24 months for abusive sexual contact in Indian Country. Sentences are to run concurrently followed by 7 years of supervised release.
“Devious individuals like Botonis use social media to gain access, groom their victims and violate their trust,” said U.S. Attorney Clint Johnson. “The victim in this case displayed incredible strength as he testified and is to be commended along with our law enforcement partners and federal prosecutors Chris Nassar and Stephanie Ihler for ensuring Botonis was held accountable for his predatory crimes.”
“The appalling conduct perpetrated by this defendant towards a minor is not only criminal, but inexcusable,” said Robert Melton, HSI Dallas Assistant Special Agent in Charge Oklahoma and Texas Panhandle Division. “We hope that his lengthy prison sentence serves as a reminder to predators everywhere that HSI and our law enforcement partners will never relent in prosecuting those who choose to exploit children.”
On Aug. 24, 2019, while in the woods, Botonis placed his hand inappropriately on the clothed minor victim’s thigh and what the victim described as his “private area.” He then attempted to kiss the victim. When the child rejected his advances and pulled away, Botonis became upset and concerned the child might reveal what had occurred to his parents. He demanded the victim delete prior messages between the two.
After the incident, Botonis continued to communicate with the victim using a Facebook page titled “Wolf Page.” Eventually, the victim’s father discovered the sexually explicit messages and the victim disclosed to his father the page belonged to Botonis and that Botonis had attempted to kiss him in the woods during an outing. The child’s parents reported the crime to authorities. During the investigation, the child further disclosed to law enforcement that Botonis had also touched him inappropriately the day of the incident.
Federal agents were able to extract messages from the victim’s cell phone including 5,000 messages where the defendant talked about the child’s looks, professed his “love” for the victim, made sexual innuendos, described sex acts. Botonis further suggested the two should engage in the “furry lifestyle,” which for some is a sexual fetish that involves dressing in animal costumes and performing sex acts. At one point, the victim indicated to the defendant that he was uncomfortable and did not want to receive any further sexual messages.
At trial, federal prosecutors contended that at the time of the crime, Botonis was a 41-year-old man obsessed with a vulnerable 13-year-old child, bombarding the victim with messages nearly every day and even guilt tripping the victim when he did not respond in kind. Prosecutors argued that while Botonis tried to portray himself as non-threatening and trustworthy, he was a predator hiding in the shadows, waiting for a vulnerable victim and the right moment to engage.
The case was initially charged in Mayes County District Court but was dismissed in April 2021 due to lack of jurisdiction based on the Supreme Court’s decision in McGirt v Oklahoma. The victim is a Cherokee citizen. The U.S. Attorney’s Office then charged the case in federal court in May 2021.
Botonis has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Mayes County Sheriff’s Office investigated the case.
Assistant U.S. Attorneys Christopher Nassar and Stephanie Ihler prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Port St. Lucie Man Sentenced to 15 Years for Trading Child Sexual Abuse MaterialRead the Press Release
MIAMI – Yesterday, Anthony James Howe, 33, of Port St. Lucie, Florida, was sentenced to 15 years in prison, followed by 15 years of supervised release, after pleading guilty in March to distribution and receipt of child sexual abuse material (CSAM).
In March 2022, Homeland Security Investigations (HSI) agents learned that an individual, later identified as Howe, had been using social media applications and chatrooms to trade CSAM with other users. Some of the images and videos traded by Howe depicted sexual abuse activities of children as young as toddlers. HSI agents also learned that Howe claimed he had installed a hidden camera in a minor child’s bedroom. HSI agents identified Howe as the person involved and executed a federal search warrant at his home. Howe later admitted to using social media platforms to send and receive CSAM.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami Field Office, announced the sentence imposed by U.S. District Court Judge Jose E. Martinez.
HSI Fort Pierce Office investigated this case. Assistant U.S. Attorneys Luisa Berti and Justin Hoover prosecuted it.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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 the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-14003.
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Plexus Worldwide, LLC, Agrees to Pay $600,000 to Resolve Alleged False Claims Violations for Mailing Packages with Underpaid and Duplicate PostageRead the Press Release
PHOENIX, Ariz. – United States Attorney Gary M. Restaino announced today that Plexus Worldwide, LLC (Plexus), an Arizona limited liability corporation that directly markets health and wellness products, agreed to pay $600,000 to resolve allegations that the company violated the federal False Claims Act (FCA).
The settlement resolves allegations by the United States that Plexus presented mail to the United States Postal Service (USPS) for delivery with postage that was based upon and calculated with attributes not associated with the items mailed, which resulted in underpaid postage. The United States also alleged that Plexus mailed other items with re-used postage. According to the United States’ allegations, the postage Plexus affixed to the mailed items represented that postage had been appropriately paid, when in fact, it had not, and the misrepresentations facilitated Plexus’ underpayment or non-payment of postage.
“The Postal Service is a unifying force in America,” said United States Attorney Restaino. “It has always delivered mail through snow and rain and heat and ‘gloom of night’; during the pandemic it delivered free masks to protect our Nation; and it increasingly connects our fellow citizens with access to the ballot box for local, state and federal elections. It is therefore incumbent on all businesses to pay their fair share to support this integral means of communication.”
“Mailers who underpay postage short-change the U.S. Postal Service of necessary funds to carry out our mission,” stated Phoenix Division Acting Inspector in Charge Glen Henderson. “Postal Inspectors are committed to protecting the Postal Service from abuse and ensuring its financial viability by holding businesses accountable for underpaying postage. The U.S. Postal Inspection Service will continue to vigorously investigate mailers who fail to comply with postal regulations.”
As part of the settlement, Plexus admitted to underpaying postage and submitting duplicate postage that resulted in a net deficit of postage due to the USPS. Plexus also admitted that it presented mail to the USPS for delivery, even though the postage weights and other attributes used to calculate postage were underreported, resulting in underpaid postage and duplicates. Additionally, Plexus admitted that systems and controls were lacking, resulting in duplicate postage and in payments that understated the postage due. Additional details of the United States’ allegations and Plexus’ admissions are set forth in the settlement agreement, available here.
Plexus Settlement AgreementThe investigation was conducted by the United States Postal Inspection Service. The case was handled by the Affirmative Civil Enforcement Unit of the United States Attorney’s Office, District of Arizona.
Individuals with information regarding fraud, waste, or abuse related to federal programs should contact the relevant federal agency. A list of agencies and contact information can be found at https://www.justice.gov/usao-az/agency-links.
RELEASE NUMBER: 2023-114_Plexus
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Pine Ridge Woman Indicted for MurderRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Pine Ridge, South Dakota, woman for Second Degree Murder.
Stacey Bissonette, age 26, was indicted in July of 2023. She appeared before U.S. Magistrate Judge Daneta Wollmann on July 26, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
In June of 2023, near Pine Ridge, Bissonette killed a man by stabbing him.
The charge is merely an accusation and Bissonette is presumed innocent until and unless proven guilty.
This matter is being prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and the FBI. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Bissonette was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Peoria Felon Sentenced to 40 Months in Federal Prison for Illegal Possession of a HandgunRead the Press Release
PEORIA, Ill. – A Peoria, Illinois man, Jermaine Harry Bernard Allison, 29, of the 300 block of East Archer Street, was sentenced on July 27, 2023, to 40 months’ imprisonment for possession of a firearm by a felon. Allison was also ordered to serve a three-year term of supervised release upon completion of his prison term.
At the sentencing hearing before U.S. District Judge James E. Shadid, the government provided information that Allison was a passenger in a car stopped by the Peoria Police Department for a traffic violation. Allison fled the scene of the traffic stop and was arrested a short distance away, following a foot chase by police. Police located several firearms in the car during the traffic stop, including a handgun on the floor directly in front of where Allison had been seated. The gun was loaded with seven rounds of ammunition in the magazine and one round in the chamber. Allison’s fingerprints were found on the handgun.
Allison was indicted and arrested in January 2023 and pled guilty in March 2023. He has remained in the custody of the United States Marshals Service while his case has been pending.
The Peoria Police Department and the Federal Bureau of Investigation, Springfield Field Office investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Allison 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.
Pain Clinic Owner, L5 Medical Holdings Plead Guilty- Agree to Pay $4 Million in RestitutionRead the Press Release
ROANOKE, Va. – A former mortgage broker, who, seeking a “recession proof” business model, decided to purchase pain clinics throughout the Western District of Virginia including Lynchburg, Madison Heights, Blacksburg, Christiansburg, and Woodlawn, pled guilty this week to a federal drug and health care fraud conspiracy.
John Gregory Barnes, 57, of South Carolina, waived his right to be indicted and pled guilty this week to a one-count Information charging him with conspiring to knowingly using, in the course of dispensing and distributing a controlled substance, registration numbers issued to others; distributing and dispensing buprenorphine not for a legitimate medical purpose; and knowingly executing and attempting to execute a scheme to defraud health care benefit programs.
In addition to his personal plea of guilty, L5 Medical Holdings, the business entity controlled by Barnes, pled guilty this week to the same charge encompassing the same conspiracies, as well as a conspiracy to distribute and dispense fentanyl, oxycodone, hydrocodone, and morphine not for a legitimate medical purpose. L5 and Barnes jointly agreed to pay almost $4 million in restitution to Medicare and Virginia Medicaid and to forfeit $250,000 to the United States.
“The conduct here is beyond the pale. We have a record-high number of Virginians fighting opioid addiction while this defendant intentionally prioritized profit over genuine patient care,” United States Attorney Christopher R. Kavanaugh said today. “I am grateful to those who investigated this matter and brought this case to justice, and we will continue to leverage federal charges against those who commit such brazen crimes.”
“Our fight against addiction and the opioid epidemic isn’t just with the drugs or major pharmaceutical companies, but also with the individuals who take advantage of addiction, of others’ pain, for their personal gain. Monetizing addiction is immoral and illegal,” said Attorney General Miyares. “I’m proud of my office and our federal partners for working together to deliver justice.”
“Our investigation into Barnes’ illegal business activities of highly addictive pain medication at the height of the opioid epidemic emphasizes his criminal indifference to human life,” said Special Agent in Charge Jared Forget of the Drug Enforcement Administration’s Washington Division. “Today’s guilty plea highlights our commitment to the tireless work of investigating the diversion of controlled substances and prosecuting those responsible for fueling opioid addiction and deadly poisonings in our area – saving lives in our communities.”
According to court documents, in 2014, despite having no medical training, Barnes bought a medical practice through his company, L5 Medical Holdings. L5 operated pain management clinics, which involved the prescribing of prescription opioids and opioid addiction treatment medications, including Suboxone.
Barnes, who previously worked in the mortgage industry, concluded that pain management was a “recession proof” Industry. In addition, he conducted a feasibility study that identified Lynchburg, Virginia, as a prime location for a pain management clinic.
After Barnes began operating his pain clinics, those clinics became more focused on prescribing Suboxone and opioids and less focused on interventional treatments. Barnes and L5 operated the clinics in a manner that prioritized revenue maximization over patient care. Providers were encouraged to limit patient visits to 15 minutes and to see as many as 30 patients per day.
In addition, at the direction of Barnes, medical providers with L5 followed the opinion of non-medical professionals in making medical decisions, including whether a patient should be treated for opioid addiction or for pain management, whether a patient should receive a prescription, and what type of drug should be prescribed.
Patient interactions with non-medical professionals were billed to Virginia Medicaid and Medicare improperly.
L5 also implemented a urine drug screening policy principally based on insurance reimbursements rather than patient care. In particular, Barnes and L5 specifically refused to implement a random drug screening policy in order to avoid losing the revenue that resulted from billing Medicare and Virginia Medicaid for as many drug tests as those insurance policies would pay for.
At sentencing, Barnes faces a maximum statutory penalty of up to five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Drug Enforcement Administration, the U.S. Department of Health and Human Services – Office of the Inspector General, the Virginia State Police, and the Virginia Attorney General’s Office - Medicaid Fraud Control Unit investigated the case.
Assistant U.S. Attorneys S. Cagle Juhan, Jason Scheff, and Special Assistant United States Attorney Janine M. Myatt, Assistant Attorney General with the Virginia Attorney General’s Office, are prosecuting the case.
Omaha Woman Sentenced to 117 Months for Drug and Firearm CrimesRead the Press Release
Acting United States Attorney Susan Lehr announced that Racheal Cain, 36, of Omaha, Nebraska, was sentenced today in federal court in Omaha after being convicted of Possession with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. United States District Court Judge Brian C. Buescher sentenced Cain to a total of 117 months’ imprisonment. There is no parole in the federal system. After her release from prison, Cain will begin a three-year term of supervised release.
In September 2021, Omaha police conducted surveillance on an apartment that was suspected of being used to distribute methamphetamine. Cain lived in the apartment with her boyfriend, co-defendant Andrew Sackett.
On September 23, 2021, Cain was arrested during a traffic stop after leaving the apartment. Police found a small amount of methamphetamine in the vehicle. Cain admitted to selling methamphetamine and told officers that methamphetamine was in her apartment along with at least one firearm. Cain consented to a search.
In the apartment, officers found more than 100 grams of methamphetamine with purity of 95 percent, along with three firearms and $11,902 in cash. Police seized an additional $677 from Cain at the jail. As part of the plea, Cain forfeited the $12,579 to the United States as being illegal drug proceeds.
Sackett pleaded guilty to the same charges and was sentenced to a total of 147 months in prison on July 10, 2023.
This case was investigated by the Omaha Police Department.
Olmsted County Man Sentenced to More Than 18 Years in Prison for Drug Trafficking ConspiracyRead the Press Release
MINNEAPOLIS – An Olmsted County man was sentenced to 220 months in prison followed by eight years of supervised release for conspiring to distribute controlled substances and for possession with intent to distribute cocaine, announced United States Attorney Andrew M. Luger.
According to court documents, in early 2021, law enforcement received information that Christopher Allen Edwards, 41, was dealing drugs in the Rochester area. Law enforcement determined that Edwards and his co-conspirator, Chloe Michelle Johnson, 25, were dealing a variety of drugs throughout Rochester and Southeastern Minnesota, from May 2021 through October 16, 2021, the date of their arrest.
According to court documents, in October 2021, law enforcement tracked Edwards’ rental vehicle as he traveled to Austin, Texas, and back to Minnesota in a quick turnaround road trip. On October 16, 2021, law enforcement stopped Edwards and Johnson in Edwards’ rental car once they drove back into Olmsted County. Edwards was caught with four kilograms of cocaine in his backpack in his rental car. That same day, law enforcement executed search warrants on Edwards’ and Johnson’s residences and found various amounts of cocaine packaged for distribution, heroin, fentanyl, and methamphetamine.
Edwards was found guilty at trial on November 17, 2022, of one count of conspiracy to distribute controlled substances, specifically, cocaine, heroin, fentanyl, and methamphetamine, and one count of possession with intent to distribute cocaine. Edwards was sentenced yesterday before Judge Nancy E. Brasel.
This case is the result of an investigation conducted by the Olmsted County Sheriff’s Office, the Southeast Minnesota Violent Crime Enforcement Team, and the Drug Enforcement Administration, with assistance from the Rochester Police Department, the Lake City Police Department, and the Minnesota Bureau of Criminal Apprehension.
This case was prosecuted by Assistant U.S. Attorneys Nathan H. Nelson and Hillary A. Taylor.
Nine Members and Associates of Asian Boyz Gang Charged with Drug Trafficking and Firearm OffensesRead the Press Release
BOSTON – Nine members and associates of the Asian Boyz (ABZ) gang have been charged in connection with drug trafficking conspiracies and dealing in firearms, including machinegun conversion devices – commonly known as “switches.”
The following were arrested and charged yesterday in U.S. District Court in Boston:
- Anel Reyes, a/k/a “A-Tecc,” a/k/a “A.T.E.C.,” 24, of Lawrence, was charged with one count of distribution of and possession with intent to distribute 100 grams or more of p-Fluorofentanyl, a fentanyl analogue; and one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl;
- Samnang Son, a/k/a “Smiley,” 33, of Lowell, was charged with one count of felon in possession of firearm and ammunition; one count of engaging in the business of dealing in firearms without a license; one count of conspiracy to distribute and to possess with intent to distribute 500 grams of more of methamphetamine; one count of distribution of and possession with intent to distribute 50 grams or more of methamphetamine; one count of distribution of and possession with intent to distribute methamphetamine; and one count of transfer and possession of a machinegun;
- Billy Chan, a/k/a Juju,” 18, of Lowell, was charged with one count of engaging in the business of dealing in firearms without a license; one count of conspiracy to distribute and to possess with intent to distribute methamphetamine; one count of distribution or and possession with intent to distribute methamphetamine; and one count of transfer and possession of a machinegun;
- Bill Phim, a/k/a “Bonez,” 35, of Acton, was charged with two counts of conspiracy to distribute and to possess with intent to distribute 500 grams or more of methamphetamine and two counts of distribution of and possession with intent to distribute 50 grams or more of methamphetamine;
- Erickson Dao, a/k/a “Silent,” 31, of Lowell, was charged with one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of methamphetamine and one count of possession with intent to distribute 500 grams or more of cocaine;
- Brian Gingras, a/k/a “Cheech,” 37, of Lowell, was charged with one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of methamphetamine and one count of possession with intent to distribute 50 grams or more of methamphetamine;
- Marcus Holder, a/k/a “Heartless” 28, of Newton, N.H, was charged with two counts of distribution of and possession with intent to distribute 50 grams or more of methamphetamine; and
- Joseph Bagrowski, 35, of Chelmsford, was charged with two counts of distribution of and possession with intent to distribute 50 grams or more of methamphetamine.
The following defendant was also charged yesterday and is currently in state custody:
- Sary Rath, a/k/a “BG,” a/k/a “Bad Guy,” a/k/a “Baby Gangsta,” 37, formerly of Lowell, was charged with one count of distribution of and possession with intent to distribute 500 grams or more of methamphetamine and one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl.
As alleged in court documents, the ABZ gang is one of the nation’s largest Asian street gangs. Members and associates of the ABZ gang are known to engage in illegal drug and firearm trafficking as well as acts of violence against rival gang members and associates. While ABZ gangs around the country operate independently of each other as far a structure and leadership, they use their ABZ gang network to facilitate their interstate narcotics and firearms trafficking.
According to court documents, Rath is a leader of the ABZ gang in Lowell and has been a self-admitted member of ABZ gang for at least the last 15 years. It is alleged that Son, Phim, Dao, Gingras and Holder are also members of the ABZ gang; Reyes and Bagrowski are associates of the ABZ gang and Chan is an associate of the Young Crip Hitters, a group aligned with the ABZ gang.
According to court documents, the defendants were part of a large drug distribution network that profited primarily from the sale of thousands of homemade counterfeit Adderall pills containing methamphetamine. It is alleged that the defendants worked together to manufacture, supply and distribute their significant supply of methamphetamine pills – including to an undercover officer on 12 different occasions between March 2022 and October 2022. Rath allegedly used a gang-affiliated business, “Money Affiliated,” to facilitate the distribution of narcotics. Rath produced and performed rap music, and he used “Money Affiliated” as a brand for the music, which prominently referenced the ABZ gang and featured other ABZ gang members, including Dao, Gingras, Phim and Holder. In total, the defendants are alleged to have distributed or possessed with intent to distribute approximately 12,100 counterfeit Adderall pills – weighing over 25 kilograms – containing methamphetamine, over 900 grams cocaine, over 400 grams of fentanyl and approximately 500 grams of para-Fluorofentanyl.
It is further alleged that, in addition to narcotics, the defendants also sold at least 15 firearms – including five machinegun conversion devices, an AR-type and “ghost guns” – magazines and hundreds of rounds of ammunition over the course of the investigation.
A search of the defendants’ residences following yesterday's arrests allegedly resulted in the recovery of multiple cellular telephones, approximately $1,000 in cash, approximately 1,000 counterfeit Adderall pills containing suspected methamphetamine, 300 Euros pills containing suspected MDMA/Ecstasy, a Smith & Wesson 9mm pistol with an obliterated serial number loaded with 9mm ammunition, a “ghost gun” pistol frame, magazines, firearms parts and a ballistics vest.
“The trafficking of firearms and deadly narcotics by violent criminal organizations is so corrosive and destructive. It makes the hard-working residents of these communities feel unsafe when they go about their daily lives – heading to work or school or just out to play,” said Acting United States Attorney Joshua S. Levy. “The defendants charged yesterday promoted violence and pumped poison into the Lowell community for a profit. This office and our law enforcement partners will continue to relentlessly investigate, identify and disrupt criminal organizations and do all that we can to ensure our communities are safe from violence and the proliferation of drugs and firearms. The U.S. Attorney’s Office offers the weight of the federal government, and we will not hesitate to bring our resources to the table to ensure our residents’ safety.”
“Yesterday, we charged nine members and associates of one of the nation’s largest Asian street gangs, who are alleged to have trafficked illegal firearms and controlled an illegal drug distribution network once belonging to their rivals. Rivals we removed from the streets of Lowell two years ago,” said Christopher DiMenna, Acting Special Agent in Charge, Federal Bureau of Investigation, Boston Division. “In peddling thousands of counterfeit prescription pills containing methamphetamine, and selling illegal firearms and machine gun conversion devices, we believe this dangerous criminal enterprise posed a direct threat to the people of Lowell. The positive impact made by removing these criminals from the streets of Lowell should immediately be felt.”
“ATF is proud to work shoulder to shoulder with our law enforcement partners to ensure everyone who is involved in illegal trafficking of firearms is held accountable, and this investigation highlights the power of this collaboration,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division.
“I would like to thank our federal law enforcement partners including the FBI and ATF, the US Attorney's Office and Middlesex County District Attorney's Office for their continued collaboration on these complex, years long investigations which help keep our community safe. This operation targeted the Lowell based set of the nationally recognized ABZ street gang, which is a violent and prolific drug and firearms trafficking organization. The Lowell Police department is committed to working with all our law enforcement partners to disrupt these violent, drug and firearm trafficking organizations,” said Greg Hudon, Superintendent of the Lowell Police Department.
The charges of distribution of and possession with intent to distribute 500 grams or more of methamphetamine; distribution of and possession with intent to distribute 100 grams or more of p-Fluorofentanyl; distribution of and possession with intent to distribute 400 grams or more of fentanyl; conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, each provide for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charges of distribution and possession with intent to distribute 50 grams or more of methamphetamine and possession with intent to distribute 500 grams or more of cocaine each provide for a sentence of at least five year and up to life in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of conspiracy to distribute and possess with intent to distribute methamphetamine and distribution of and possession with intent to distribute methamphetamine each provide for a sentence of up to 20 years in prison, at least three years up to life in prison and a fine of up to $1 million. The charges of felon in possession of a firearm and ammunition and transfer and possession of a machinegun each provide for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of engaging in the business of dealing in firearms without a license provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy; FBI Acting SAC DiMenna; ATF SAC Ferguson; and Lowell Police Superintendent Hudon made the announcement today. Valuable assistance was provided by the Middlesex County District Attorney’s Office; Massachusetts State Police; and the Billerica, Haverhill, North Andover and Salem Police Departments. Assistant U.S. Attorney Fred Wyshak of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mexican National to Serve 19 Years in Federal Prison for Drug TraffickingRead the Press Release
SAN ANTONIO – A Mexican national was sentenced in a federal court in San Antonio Tuesday to 168 months in prison for one count of possession with intent to distribute 50 grams or more of methamphetamine and one count of possession with intent to distribute one kilogram or more of heroin, plus 60 months in prison for one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, Eduardo Puente, 46, of San Buena, Coahuila, Mexico, a convicted felon with two outstanding Texas arrest warrants, came under an FBI Safe Streets Task Force investigation in January 2022 and was identified as the source of supply for two controlled narcotics purchases of methamphetamine. On Feb. 17, 2022, the task force, with assistance from Texas Department of Public Safety Troopers and Criminal Investigation Division agents, observed Puente carrying a white shoe box en route to a third controlled purchase, as part of the investigation. DPS Troopers and CID agents conducted a traffic stop on Puente, which led to a foot pursuit, during which he tossed a Ruger .357 revolver. Puente was assisted in the pursuit by an individual in a red Chevrolet Silverado, who picked Puente up to aid in his escape. DPS executed a traffic stop on the truck and, though Puente again attempted to flee on foot, he was arrested.
In a search of Puente and his vehicle, DPS Troopers and FBI Agents seized eight small bags of suspected methamphetamine, a bag of a black tar substance suspected to be heroin, and $2,090 in cash. In a search of Puente’s residence, FBI agents seized 2.281 kg of marijuana, 3.016 kg of heroin, and 44.021 kg of methamphetamine. They also seized a .223 caliber rifle loaded with armor piercing rounds and approximately $6,400 in cash.
“I commend the efforts of our federal and state law enforcement partners in this case,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Their work on the ground resulted in a significant seizure of illegal drugs, which would have otherwise been distributed in our community. This sentence is a victory for public safety, and I am grateful for their dedication to keeping our streets safe.”
“This sentencing sends a clear message that the FBI and our law enforcement partners will continue to work diligently to hold criminals who are bringing dangerous drugs into our communities accountable for their actions,” said Acting Special Agent in Charge Marcus Joachim for the FBI San Antonio Division. “The American people deserve to live in communities safe from violence and criminal activity associated with illegal narcotics trafficking."
The FBI and DPS investigated the case.
Assistant U.S. Attorney Karina O’Daniel prosecuted the case.
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Maryland Man Found Guilty of Assault with Intent to Kill for Brutal Metro StabbingRead the Press Release
WASHINGTON – Darrell Jones, 49, of Beltsville, MD, was convicted of all counts stemming from the April 7, 2022 stabbing of Wayne Pitt, at the Anacostia Metro Station, announced U.S. Attorney Matthew M. Graves and Chief Michael Anzallo, of the Metro Transit Police Department (MTPD). The verdicts were returned yesterday by a Superior Court jury that found Jones guilty of assault with intent to kill while armed, aggravated assault while armed, and carrying a dangerous weapon. A sentencing hearing is scheduled for September 26, 2023.
On April 7, 2022, shortly before 7p.m., Darrell Jones arrived at the Anacostia Metro Station with his friend, Wayne Pitt. According to the government’s evidence, the two men were intoxicated as they spent more than an hour the Metro station platform. Jones pulled a folding knife out of his pocket and began attacking Mr. Pitt, driving the victim onto his back and swinging the knife at him 20 times. Mr. Pitt suffered nine stab wounds to his chest, sternum, abdomen and hand, suffering a punctured lung and numerous deep wounds that required immediate surgery. An MTPD officer arrived on scene, drew his weapon, and demanded that Jones drop the knife. Jones attempted to retreat from the officer, and then turned and cocked back his arm with the knife, as if to throw it in the direction of the officer. The officer shot Jones once.
In announcing the sentence, U.S. Attorney Graves and Chief Anzallo commended the work of those who investigated the case from the Metro Transit Police Department. They also acknowledged the efforts of those who provided assistance in the U.S. Attorney’s Office, including: Deputy Chief of the Major Crimes Section Kimberly Nielsen, Paralegal Specialist Crystal Waddy, Litigation Technology Supervisor Leif Hickling, and Litigation Technology Specialist Charlie Bruce. Finally, they commended the work of Assistant U.S. Attorneys Noah Simmons and Ella Gladman, who prosecuted the case, and Assistant U.S. Attorney Connor Mullin, who initially investigated the case.
Manderson Man Found Guilty Following a Jury TrialRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a jury has convicted Gabriel White Plume, Sr., age 39, of Pine Ridge, South Dakota, of Aggravated Sexual Abuse by Use of Force, Assault Resulting in Serious Bodily Injury, Assault by Strangulation and Suffocation, Distribution of a Controlled Substance to an Individual Under 21, Tampering with a Witness, Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner, two counts of Assault Resulting in Serious Bodily Injury, and Sexual Abuse following a four-day jury trial in federal district court in Rapid City. The verdict was returned on July 28, 2023.
White Plume faces any term of years up to life in custody and/or up to a $5,000,000 fine, a minimum of five years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund for each count.
White Plume was indicted by a federal grand jury in February of 2023.
The charges related to White Plume physically and sexually abusing his dating partner by the use of force at Manderson. The victim sustained substantial bodily injury from the physical assault and serious bodily injury from the sexual assault. Prior to being charged federally, White Plume was able to obtain a cellular device in his cell while incarcerated at Pine Ridge. White Plume used the cellular device to access Facebook in order to corruptly persuade his victim into dropping tribal charges.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court.
This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Megan Poppen and Anna Lindrooth prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for October 18, 2023. The defendant was remanded to the custody of the U.S. Marshals Service.
Man Unlawfully in the United States Sentenced to Federal Prison for Methamphetamine DistributionRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 28, 2023, Senior United States District Judge William C. Griesbach sentenced Moises Perez-Ochoa (Age: 40) to a total sentence of ten years’ imprisonment, to be followed by five years of supervised release.
According to court documents, Perez-Ochoa distributed more than five pounds of methamphetamine in Manitowoc, Wisconsin, from December 2022 through February 2023. After Perez-Ochoa was arrested, agents with the Manitowoc Metro Drug Unit learned that Perez-Ochoa also distributed approximately four pounds of methamphetamine in Pierce County, Wisconsin, from October 2022 through November 2022. As a result, Perez-Ochoa was charged and convicted of distribution of 500 grams or more of methamphetamine.
Agents determined that at the time of his offense, Perez-Ochoa was not legally present in the United States, and that he had been removed from the country in 2006, 2012, 2015, 2017, 2018, and 2019. Perez-Ochoa’s criminal record includes two separate convictions for Re-Entry of a Removed Alien and a prior conviction for drug distribution.
The Manitowoc Metro Drug Unit investigated the case, which Assistant United States Attorney Alexander E. Duros prosecuted in United States District Court.
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Man Stopped in St. Louis County Accused of Fentanyl TraffickingRead the Press Release
ST. LOUIS – A man was indicted in U.S. District Court in St. Louis Wednesday on fentanyl distribution charges.
The indictment accuses Alejandro Chacon-Martinez, 20, of possession with the intent to distribute a mixture or substance containing fentanyl on July 17. A criminal complaint filed July 18 says Chacon-Martinez was stopped the day before at a gas station in Fenton, Missouri as he was traveling east on Interstate 44 in a car with a Mexican license plate. A K-9 detected the odor of drugs and investigators found ten individually wrapped kilograms of suspected fentanyl concealed in side panels in the trunk of the car Chacon-Martinez was driving, the complaint says.
The charge carries a penalty of up to 20 years in prison, a $1 million fine or both.
Charges set forth in an indictment or a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Drug Enforcement Administration and St. Louis County Police Department are investigating the case. Assistant U.S. Attorney Dane Rennier is prosecuting the case.
Macon Man Sentenced to Prison Resulting from Identity Theft InvestigationRead the Press Release
MACON, Ga. – A Middle Georgia resident was sentenced to prison this week after he admitted to committing wire fraud in an identity theft scheme.
Aaron Jamal Denzel Austin, 33, of Macon, was sentenced to serve 48 months in prison to be followed by three years of supervised release by U.S. District Judge Marc Treadwell on July 26, after he previously pleaded guilty to one count of wire fraud. There is no parole in the federal system.
“Identity theft and fraud is rampant. In this case, the defendant was using stolen personal information to execute a variety of schemes, from registering fake businesses so he could obtain large credit lines to depositing a stolen $49,000 check,” said U.S. Attorney Peter D. Leary. “Local and federal investigators have prevented continued fraud and distress for these victims and have helped us hold the defendant accountable for his criminal schemes.”
“This case is another example that clearly shows criminals are continuously looking for ways to commit fraud. In this case, fictious business were created for the sole purpose of committing fraud,” said Resident Agent in Charge (RAC) Clint Bush, United States Secret Service, Albany, Georgia, Resident Office. “The United States Secret Service, along with our state, local, and federal law enforcement partners will continue to investigate, arrest and support the successful prosecution of the criminals who choose to commit this and other types of financial fraud in our community and around the nation.”
According to court documents, Monroe County Sheriff’s deputies found eight debit cards and three driver’s licenses belonging to other people in Austin’s possession during a traffic stop for reckless driving and failing to maintain lane on Jan. 19, 2020. A subsequent investigation revealed that Austin, who worked at an Atlanta club, had used two stolen identities to register two separate fictious businesses with the Georgia Secretary of State’s Office to obtain two Capital One business credit cards with credit limits of $30,000 and $20,000. Investigators discovered Austin used three other identities in a similar scheme to obtain business credit cards but was denied by the credit card company.
Investigators found text conversations between Austin and others discussing criminal fraud, including obtaining “socials” or social security numbers, exchanging a victim’s banking user name and password, and how to call banks to learn account balances and other victim information. Authorities also concluded the defendant recruited individuals to allow him to use their bank accounts to conduct fraudulent transactions. For example, Austin deposited a stolen $49,000 check from a New York couple into a coconspirator’s account. In all, authorities identified 23 actual or intended victims; Austin is being held accountable for a loss of $100,000.
The case was investigated by the Monroe County Sheriff’s Office and the United States Secret Service.
Assistant U.S. Attorney Joy Odom prosecuted the case.
Mount Pleasant Man Sentenced to Federal Prison for Child Exploitation ChargesRead the Press Release
NASHVILLE – A Mount Pleasant, Tennessee, man was sentenced to federal prison today for child exploitation charges, announced U.S. Attorney Henry C. Leventis.
Clinton Shawn Gransden, 44, was sentenced to 40 years in prison for the production, receipt, transportation, and possession of child pornography, followed by supervised release for life.
Over the course of several months in 2019, Gransden repeatedly provided a minor teenage girl with alcohol, methamphetamines, and cocaine. While she was under the influence of those substances, he filmed the victim performing sex acts with him and others, and otherwise controlled and degraded her. Gransden also forced a prepubescent girl to perform oral sex on him.
The sexual abuse videos that Gransden created were posted online, where individuals acquainted with the teenage victim saw them and reported the crime to the authorities. Investigators searched Gransden's electronic devices and discovered the sexual abuse videos as well as evidence that Gransden had sent the videos to others. Investigators also found evidence that Gransden downloaded and possessed child pornography depicting the victims.
A federal grand jury indicted Gransden on nine counts of producing child pornography and one count each of transporting, receiving, and possessing child pornography. On February 2, 2023, Gransden pleaded guilty to all the charges.
The U.S. Department of Homeland Security, Homeland Security Investigations and the Maury County Sherriff’s Office investigated the case, with assistance from the FBI. The case is being prosecuted by Assistant U.S. Attorney S. Carran Daughtrey and Trial Attorneys Austin M. Berry and Adam Braskich of the Criminal Division’s Child Exploitation and Obscenity Section.
The case against Gransden’s co-defendants Angel Morales Depasquale and Michelle E. Klen remain pending and they are presumed innocent until proven guilty in a court of law.
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Leader of Money Laundering Operation Sentenced to Three Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ABRAHAM ADENIYI was sentenced today by U.S. District Judge Edgardo Ramos to three years in prison for operating a money laundering scheme that laundered nearly $8 million of wire fraud proceeds. ADENIYI previously pled guilty to conspiracy to commit money laundering.
U.S. Attorney Damian Williams said: “Abraham Adeniyi used a web of bank accounts to funnel millions of dollars stolen from fraud victims into his own pockets and the pockets of the fraudsters. He now faces prison time and is required to forfeit his ill-gotten gains.”
According to the allegations in the Indictment filed against ADENIYI and other court proceedings:
From at least in or about 2017 through at least in or about 2020, ADENIYI opened and directed others to open multiple bank accounts, which received proceeds of various wire fraud schemes. ADENIYI provided his accomplices with fraudulent identification information to open those bank accounts. Upon arrival of the fraudulent proceeds, ADENIYI transferred and directed others to transfer those proceeds rapidly among the various bank accounts controlled by participants in the scheme in order to conceal and disguise the source, location, ownership, and control of the funds. Ultimately, after moving through multiple bank accounts, the funds were withdrawn as cash, transmitted overseas, or used for ADENIYI’s personal expenses. This rapid transfer of funds prevented the banks and the victims from recovering the funds once the underlying frauds were detected. During the course of the scheme, ADENIYI laundered at least nearly $8 million dollars of fraud proceeds.
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In addition to his prison term, ADENIYI, 40, of Atlanta, Georgia, was ordered to forfeit and pay restitution in the amount of $7,814,294.56.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney Anden Chow is in charge of the prosecution.
Lake City Man Pleads Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Austin Harper (26, Lake City) has pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine. Harper faces a mandatory minimum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on September 15, 2021, an undercover detective and confidential informant (CI) met with a drug dealer in Lake City, Florida to purchase crystal methamphetamine. That dealer, a defendant in a related case, traveled with the pair to meet with Harper, who supplied them with more than 85 grams of methamphetamine. Two weeks later, on September 29, the detective and CI again traveled with the dealer to meet with Harper. This time, Harper supplied them with more than 165 grams of methamphetamine. Laboratory testing would later show that the drugs that Harper had supplied was pure methamphetamine. Further investigation established that Harper was a regular supplier of methamphetamine in the Lake City region.
This case was investigated by the Drug Enforcement Administration, the Columbia County Sheriff’s Office, the Columbia County Drug Task Force, the North Star Multi-Jurisdictional Drug Task Force, the Wakulla County Sheriff’s Office, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Justice Department Sues to Shut Down Florida Tax Return PreparersRead the Press Release
The United States filed a complaint in the U.S. District Court for the Southern District of Florida against George Brito, Luis Brito, and Brito and Brito Accounting USA, Inc. The civil complaint seeks to enjoin the defendants from preparing federal tax returns for others.
The civil complaint alleges that the defendants George Brito and Luis Brito have worked as tax return preparers for almost thirty years, and since 2019 have prepared thousands of tax returns annually. The complaint alleges that the defendants prepare returns that understate their customers’ tax liabilities and overstate their refunds. According to the complaint, the defendants’ unlawful schemes include deducting ineligible expenses as itemized deductions; claiming false or inflated business expenses and losses; and fabricating residential energy credits without any factual basis to claim them.
As alleged in the complaint, the defendants have caused the United States to issue inflated refunds that defendants’ customers were not entitled to receive and to lose tax revenue. The complaint further alleges that the defendants’ conduct harmed their customers who pay substantial fees for what they believe to be honest return preparation services, but eventually learn that they owe money to the IRS because of the inaccuracies reported on their returns.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers as return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer, as well as steps taxpayers can take to get a jumpstart on filing. The IRS has launched a free directory of federal tax preparers and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $73,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here.
Jackson Man Pleads Guilty to Being a Convicted Felon in Possession of a FirearmRead the Press Release
Jackson, Miss. – A Jackson man pleaded guilty to being a convicted felon in possession of a firearm, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Samuel McCray, 35, was found in possession of a firearm by a Jackson Police Officer on April 16, 2022, during an investigation into a domestic abuse incident. McCray has a prior felony conviction and is prohibited from possessing a firearm.
McCray will be sentenced on November 3, 2023 and faces a maximum penalty of ten years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI and the Jackson Police Department. It is being prosecuted by Assistant United States Attorney Jessica S. Terrill.
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.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on July 27 was:
Leota Lynn Beartusk-Martinez, 38, a transient, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Beartusk-Martinez faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Beartusk-Martinez was detained pending further proceedings. The Drug Enforcement Administration conducted the investigation. PACER case reference. 22-130.
Derry Jerel Howard, 42, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Howard faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the drug charges and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearm charge. Howard was detained pending further proceedings. The Billings Police Department, U.S. Border Patrol and Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 23-86.
Shaynee Renee Gibbs, 45, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and fentanyl, possession with intent to distribute meth and fentanyl and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Gibbs faces a mandatory minimum of 10 years in prison, a $10 million fine and five years of supervised release on the drug charge and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearm charge. Gibbs was detained pending further proceedings. The Drug Enforcement Administration, Billings Police Department, U.S. Border Patrol, Laurel Police Department, Yellowstone County Sheriff’s Office and Montana Highway Patrol conducted the investigation. PACER case reference. 23-39.
Dawn Marie Guevara, aka Dawn Marie Owen, 42, of Billings, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Guevara faces a mandatory minimum of 10 years in prison, a $10 million fine and five years of supervised release. Guevara was detained pending further proceedings. The Drug Enforcement Administration conducted the investigation. PACER case reference. 19-01.
Appearing on July 25 was:
Sean Wesley Colwell, 43, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Colwell faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Colwell was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Yellowstone County Sheriff’s Office, U.S. Marshals Service and Montana Probation and Parole investigated the case. PACER case reference. 23-76.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on July 28 was:
Raymond Perez Ramos, 30, of Long Beach, California, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Ramos faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Ramos was released pending further proceedings. The Drug Enforcement Administration, U.S. Postal Service and Lewis and Clark County Sheriff’s Office investigated the case. PACER case reference. 21-13.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indian Citizen Pleads Guilty to Multiple Counts of Alien Smuggling and ConspiracyRead the Press Release
PLATTSBURGH, NEW YORK – Simranjit Singh, age 40, a citizen of India living in Canada, pled guilty today to alien smuggling and conspiracy to commit alien smuggling. At the request of the United States, Singh was taken into custody on June 28, 2022, in Ontario, Canada. Singh was extradited from Canada to the United States on March 30, 2023.
The announcement was made by United States Attorney Carla B. Freedman, Chief Patrol Agent Robert N. Garcia, United States Border Patrol, Swanton Sector, and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
In pleading guilty, Singh admitted that from at least March of 2020 through March of 2021, he facilitated the smuggling of numerous Indian nationals from Canada into the United States, via Cornwall Island and the Akwesasne Mohawk Indian Reservation in the St. Lawrence River region, for profit.
Sentencing is scheduled for December 28, 2023, before United States District Judge Mae A. D’Agostino in Albany, New York, at which time Singh faces a mandatory term of 5 years in prison and up to 15 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. Singh will be subject to deportation following the conclusion of his sentence, which is determined by an immigration judge. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by United States Border Patrol, Homeland Security Investigations, the Ontario Provincial Police, the Canadian Border Services Agency, and the Royal Canadian Mounted Police. The case is being prosecuted by Assistant U.S. Attorney Jeffrey Stitt with assistance from the U.S. Department of Justice Office of International Affairs.
Husband and Wife Plead Guilty to $65 Million TRICARE FraudRead the Press Release
NEWS RELEASE SUMMARY – July 28, 2023
SAN DIEGO - Jimmy and Ashley Collins, a married couple living in Birchwood, Tennessee, pleaded guilty in federal court today, admitting that they participated in a health care fraud scheme that bilked TRICARE – the health care program that covers United States service members –out of more than $65 million.
The couple admitted they worked with others to recruit TRICARE beneficiaries who were willing to sign up to receive expensive compounded medications, even though the beneficiaries did not really need the medications. The beneficiaries’ information was sent to Choice MD, a Tennessee medical clinic co-owned and operated by the Collinses. Doctors and medical professionals employed by the Collinses at Choice MD, including Dr. Susan Vergot, Dr. Carl Lindblad, and nurse practitioner Candace Craven, then wrote prescriptions for the TRICARE beneficiaries, despite never conducting a medical review or examination of the patients in person. Once signed by the doctors, these prescriptions were not given to the straw beneficiaries, but sent directly to The Medicine Shoppe, a pharmacy in Bountiful, Utah, which filled the prescriptions and received massive reimbursement from TRICARE.
Between December 2014 and May 9, 2015 – the day that TRICARE stopped reimbursing for compounded medications – the doctors working for the Collinses at Choice MD authorized 4,442 prescriptions and billed TRICARE $65,679,512 for these prescriptions.
The owners of The Medicine Shoppe then paid kickbacks to the Collinses based on a percentage of the TRICARE reimbursement paid for the prescriptions referred by the Collinses’ recruiter network. Between February and July 2015, these kickback payments to the Collinses totaled at least $45.7 million dollars. The Collinses, in turn, paid kickbacks to the recruiters working as part of their network, including defendants Josh Morgan, Kyle Adams, and Daniel Castro, among others.
The United States has seized property and items purchased by the Collinses and others with the proceeds of the scheme. Included among these items is an 82-foot yacht; multiple luxury vehicles, including two Aston-Martins; a multimillion-dollar investment annuity; dozens of pieces of farm equipment and tractor-trailer trucks; and three pieces of Tennessee real estate.
The Collinses are the last members of the conspiracy to plead guilty. The doctors and nurse practitioner who prescribed these unnecessary prescriptions, the corporate owner of the pharmacy that filled these unneeded prescriptions, and the patient recruiters have all pleaded guilty for their roles in the conspiracy to commit healthcare fraud and admitted their roles in this fraudulent scheme.
“The scheme alleged in this case resulted in massive losses to a taxpayer-funded healthcare program meant to help members and veterans of our armed forces,” said U.S. Attorney Randy Grossman. “The days of yachts and luxury cars are gone. With these guilty pleas, we are holding these defendants accountable for their crimes.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“The Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the health care system for our military members and their families,” said Special Agent-in-Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “Today's outcome demonstrates our unwavering commitment to hold accountable those that perpetrate fraud against TRICARE and put its beneficiaries at risk.”
“Mr. and Mrs. Collins operated a TRICARE scheme that defrauded the American taxpayer of more than $65 million in healthcare resources that should have been directed to service members, retirees, and their dependents,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “This guilty plea should serve as a warning that NCIS and our partners are dedicated to rooting out fraud that harms the military community.”
Jimmy and Ashley Collins are scheduled to be sentenced on October 27 at 9 a.m. before U.S. District Judge Janis L. Sammartino.
DEFENDANTS Case Numbers: 18-CR-1850-JLS, 18-CR-1855-JLS
Jimmy Collins Age: 59 Birchwood, TN
Ashley Collins Age: 37 Birchwood, TN
SUMMARY OF CHARGES
Jimmy Collins:
Receipt of Illegal Remuneration, in violation of 42 U.S.C. §1320(a)-7b(b)(1)(A)
Maximum penalty: Ten years in prison and $100,000 fine or double loss amount, whichever is greater
An order of restitution requiring defendant to repay at least $65,679,512.71 to DHA/TRICARE
Ashley Collins:
Conspiracy, in violation of 18 U.S.C. § 371
Maximum penalty: Five years in prison and $250,000 fine or double loss amount, whichever is greater
An order of restitution requiring defendant to repay at least $65,679,512.71 to DHA/TRICARE
AGENCY
Defense Criminal Investigative Service
Naval Criminal Investigative Service
IRS Criminal Investigation Division, Gulfport, MS
Federal Bureau of Investigation - Jackson, MS Field Office
Guymon Woman Sentenced to Serve 15 Months in Federal Prison for Preparing False Tax ReturnsRead the Press Release
OKLAHOMA CITY - Today, LIZBETH SAENZ LONGORIA, 52, of Guymon, Oklahoma, was sentenced to serve 15 months in federal prison for aiding or assisting in the preparation of false tax returns, announced U.S. Attorney Robert J. Troester.
On December 12, 2022, a criminal Information was filed charging Longoria with willfully aiding or assisting in the preparation of a false return. On January 25, 2023, Longoria pleaded guilty to the charge.
According to the Information, Longoria knowingly included approximately $13,299 worth of medical or dental expenses on a person’s 2017 Individual Income Tax Return, Form 1040, despite knowing the individual did not have medical or dental expenses near that amount for the year 2017.
At a sentencing hearing today, U.S. District Court Judge Scott L. Palk sentenced Saenz to serve 15 months in federal prison. Judge Palk took into account relevant conduct by Longoria that included 116 additional false returns and ordered her to pay $291,520.00 in restitution to the Internal Revenue Service. In announcing the sentence, the court noted the seriousness of the offense and the need for general deterrence.
This case is the result of an investigation by the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Will Farrior.
Reference is made to public filings for more information.
Félix Verdejo-Sánchez Found Guilty of Kidnapping Resulting in Death, and Intentionally Killing an Unborn ChildRead the Press Release
SAN JUAN, Puerto Rico – A federal jury convicted Félix Verdejo-Sánchez today for federal crimes that arise from the murder of Keishla Rodríguez Ortiz on April 29, 2021.
The jury determined, according to court documents and evidence presented at trial, Félix Verdejo-Sánchez, along with his co-defendant Luis Antonio Cádiz-Martínez, aiding and abetting each other, committed a kidnapping that resulted in the death of Keishla M. Rodríguez Ortiz and her unborn child.
On the morning of April 29, 2021, Félix Verdejo-Sánchez executed a premeditated plan to murder Keishla Rodríguez Ortiz and her unborn child by luring Ms. Rodríguez Ortiz into his Dodge Durango where, with the assistance of Luis Cádiz Martínez, Verdejo punched Ms. Rodríguez Ortiz, injected her with drugs and then tied her with metal wire to a cement block. Mr. Verdejo Sánchez then drove the victim to the Teodoro Moscoso bridge, and, with Cadiz’s assistance, threw Ms. Rodríguez Ortiz into the San José Lagoon. He later jumped into the lagoon in order to finish murdering both victims.
“We stand firmly with the family of Keishla Rodríguez Ortiz and all those in the community who sought justice for this senseless, cruel, and heinous act of premeditated and cold-blooded violence against Keishla and her unborn child,” said United States Attorney Muldrow. “I also commend the hard work, dedication, and relentless pursuit of justice by federal and local law enforcement, including the FBI, the Puerto Rico Police Bureau, the Puerto Rico Department of Public Safety, the Puerto Rico Forensic Science Institute, and the Puerto Rico Department of Justice, as well as the prosecutors and professional staff in the U.S. Attorney’s Office.”
“There are damages which cannot ever be repaired, not even by a just verdict,” said FBI San Juan Special Agent in Charge, Joseph González. “In cases such as these, all we can do is give our all in the pursuit of justice. Today, I can say that my team did exactly that, and I am proud of their dedication. I would like to thank the U.S. Attorney’s Office for the amazing work and the jury for their service. We did what we do and justice was served.”
Defendant Verdejo-Sánchez faces a mandatory life sentence for each conviction under 18 USC Sections 1201(a)(1) and 1841, respectively. The sentencing was scheduled for November 3, 2023 at 2:00 pm.
The FBI was in charge of the investigation with the close collaboration and support of the Puerto Rico Department of Public Safety, the Puerto Rico Police Bureau, and the Puerto Rico Department of Justice.
Assistant United States Attorney Jonathan Gottfried, Chief of the Violent Crimes and National Security Section at the U.S. Attorney’s Office and Assistant U.S. Attorney Jeanette Collazo prosecuted the case.
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Fourteen Time Convicted Felon Sentenced to More than 11 Years for Gun and Narcotics OffensesRead the Press Release
RALEIGH, N.C. – A Wilmington man was sentenced today to 138 months in federal prison for possession with intent to distribute a quantity of fentanyl and heroin, possession of a firearm in the furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. On April 26, 2023, Jarrod Eugene Davis, age 42, pled guilty to the charges.
According to court documents and other information presented in court, Wilmington Police Department officers responded to a ShotSpotter activation on April 13, 2022, where they located the defendant and attempted to speak to him. The defendant initially fled on foot from law enforcement, but he was quickly apprehended by officers. A search of the defendant revealed $982 in United States Currency. Officers backtracked the defendant’s path of flight and found a “fanny pack” containing 321 bags of a mixture of fentanyl and heroin and a loaded Taurus 9mm handgun underneath the “fanny pack.” Additionally, officers located a spent 9mm shell casing in the area where the initial contact was made with the defendant. Forensic testing revealed the defendant’s fingerprint on the magazine of the handgun and determined the spent shell casing found on the scene was fired from the 9mm Taurus handgun. At the time of this offense, the defendant was on post release supervision after being released from prison on December 4, 2021, after serving a 76 to 104 month prison sentence for possessing a firearm by a convicted felon and being a habitual felon.
The defendant has over thirty criminal convictions, fourteen of which are for felony offenses. In November of 2003, the defendant was sentenced to 94 to 122 months in prison after he pled guilty to numerous felony offenses in New Hanover County Superior Court relating to an incident where he shot at two Wilmington Police Department Officers on February 22, 2003, and for an armed robbery that he committed five months prior.
“We are prioritizing the prosecution of shooters and violent repeat offenders like this defendant, who sow fear and push deadly narcotics into our communities. I am grateful to local law enforcement and district attorneys for prioritizing these cases through our Violent Crime Action Plan (VCAP),” said U.S. Attorney Michael Easley.
“Repeat offenders are a burden to our law enforcement agencies and a danger to our communities,” said ATF Special Agent in Charge Bennie Mims. “ATF and our law enforcement partners will continue to identify and apprehend those individuals who blatantly ignore the laws in place to keep neighborhoods safe.”
“Our priority remains going after armed repeat offenders and putting them in prison for years. This result would not be possible without the partnership between state and federal authorities made possible through New Hanover County” said District Attorney Ben David.
“Felons who possess firearms and traffic in illegal substances have no place in our community and we will continue to pursue them. Once again, our women and men have stepped up to the plate to get another violent offender off the streets. I am grateful for our continued partnerships with local, state, and federal agencies as well. Anyone who brings heroin, fentanyl, or any other illegal substance into our city will be arrested and prosecuted to the fullest extent of the law” said Wilmington Police Department Chief Donny Williams.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Wilmington Police Department, the Wilmington Police Department Gun Crimes Task Force, and the New Hanover County Sheriff’s Office investigated the case and Special Assistant United States Attorney William Van Trigt prosecuted the case. Van Trigt is a prosecutor with the New Hanover County District Attorney’s Office assigned to the United States Attorney’s Office to prosecute federal violent crimes and other criminal matters. This has been made possible by a grant funded by New Hanover County.
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is a collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:23-cr-00005D-001.
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Four indicted for money laundering in prolific human smuggling network takedownRead the Press Release
LAREDO, Texas - A federal grand jury has returned a superseding indictment charging four defendants with conspiracy to launder money.
The new charges were filed against Erminia Serrano Piedra aka Irma or Boss Lady, 32, Elgin and Oscar Angel Monroy Alcibar aka Pelon, 40, both of Elgin; Pedro Hairo Abrigo, 34, Killeen; and Juan Diego Martinez-Rodriguez aka Gavilan, 38, Dale.
As alleged in the superseding indictment, the defendants conspired to engage in financial transactions designed to conceal the nature, location, source, ownership and control of ill-gotten proceeds of illicit human smuggling and the unlawful harboring and transportation of undocumented aliens. The leaders of the organization allegedly recruited and used straw persons to accept human smuggling proceeds in their bank accounts and then transferred these proceeds to the leaders under the pretense of “work” payments for construction. The defendants also allegedly used businesses and business accounts to transfer the human smuggling proceeds. In addition, the defendants recruited individuals to accept human smuggling proceeds in the form of cash in exchange for checks from the recruited individuals’ business bank accounts, according to the charges.
The superseding indictment also notices the criminal forfeiture of three properties with values currently estimated at approximately $2.275 million, $515,000 and $344,000 as well as money judgments amounting to at least $2,945,027.
Three of the four defendants were previously charged with human smuggling in an indictment filed in the Southern District of Texas (SDTX) and unsealed on or about Sept. 13, 2022. That indictment was the culmination of a significant enforcement operation to disrupt and dismantle an alleged prolific human smuggling organization operating in Texas and elsewhere. That operation resulted in the arrests of 14 alleged members of a human smuggling organization Piedra led that facilitated the unlawful transportation and movement of hundreds of migrants within the United States and harbored and concealed those migrants from law enforcement detection. The migrants were citizens of Mexico, Guatemala and Colombia, and they or their families allegedly paid members of the human smuggling organization to help them travel unlawfully to and within the United States. According to the indictment, the human smuggling organization used drivers to pick up migrants near the U.S.-Mexico border and transport them into the interior of the United States, often harboring them at “stash houses” along the way in locations such as Laredo and Austin. Drivers for the human smuggling organization allegedly hid migrants in suitcases placed in pickup trucks and crammed migrants in the back of tractor-trailers, covered beds of pickup trucks, repurposed water tankers and wooden crates strapped to flatbed trailers. These methods allegedly placed the migrants’ lives in danger, because they were frequently held in contained spaces with little ventilation, which became overheated, and they were driven at high speeds with no vehicle safety devices.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Alamdar S. Hamdani for the SDTX and Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI) made the announcement.
HSI Laredo, along with Customs and Border Protection’s (CBP) Border Patrol Laredo Sector and Department of Homeland Security - Office of Inspector General (DHS-OIG), led the investigation and received substantial assistance from HSI offices in Austin, San Antonio, Waco and Corpus Christi; New Orleans, Louisiana; Gulfport, Mississippi; Mobile, Alabama; West Palm Beach, Florida; Human Smuggling Unit in Washington, D.C.; as well as CBP’s National Targeting Center; U.S. Marshals Service; Immigration and Customs Enforcement’s Enforcement and Removal Operations – Austin; and the Treasury Executive Office for Asset Forfeiture. Police departments in Laredo, Killeen, Elgin and Round Rock as well as Wiggins, Mississippi and Bogalusa, Louisiana; Webb County Constable’s Office; Webb County District Attorney’s Office; sheriffs’ offices in Webb, Bastrop and Caldwell Counties in Texas, Harrison, George and Stone Counties in Mississippi, Mobile County, Alabama, and Jefferson and Washington Parishes in Louisiana; Mississippi Bureau of Narcotics; and the Louisiana State Police also provided substantial assistance.
Trial Attorneys Christian Levesque and Angela Buckner of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), Trial Attorney Daria Andryushchenko of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and SDTX Assistant U.S. Attorney Jennifer Day are prosecuting the case with substantial assistance from MLARS Financial Investigator Kelly O’Mara, Criminal Division’s Office of Enforcement Operations’ (OEO) Electronic Surveillance Unit (ESU) and ESU Acting Deputy Chief Jessica Reid.
The indictments against these defendants were brought under Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland created JFTA in June 2021 in partnership with DHS to strengthen the department’s overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras and Mexico, with a focus on networks that endanger, abuse or exploit migrants, present national security risks or engage in other types of transnational organized crime.
Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, DHS, and other interagency law enforcement participants, and with foreign law enforcement partners, including in El Salvador, Guatemala, Honduras and Mexico; targeted those organizations who most significantly impact the United States; and coordinated significant smuggling indictments and extradition efforts in U.S. Attorneys’ Offices across the country. To date, JTFA’s work has resulted in over 100 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; several dozen convictions; significant jail sentences imposed; and substantial asset forfeiture. JTFA is comprised of detailees from U.S. Attorneys’ Offices along the southwest border, including SDTX, Western District of Texas, Districts of New Mexico, Arizona and Southern California. Numerous components of the Justice Department’s Criminal Division are part of JTFA, led by HRSP, and including the Office of Prosecutorial Development, Assistance and Training, Narcotic and Dangerous Drug Section, MLARS, OEO, the Office of International Affairs and the Organized Crime and Gang Section. JTFA is made possible by substantial law enforcement investment from DHS, FBI, Drug Enforcement Administration and other partners.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four Men Federally Indicted for Hobbs Act Conspiracy, Firearms Charges, and a KidnappingRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today the unsealing of a July 13, 2023, Indictment returned by a federal grand jury charging four Delaware men with a crime spree that culminated in the kidnapping and rape of an individual identified in the Indictment as “Victim-1.”
According to the Indictment, on April 14, 2023, Tonnaire McNair-Matthews, 24, David Hinson, 23, Michael Caldwell, 21, and Mahkiya Powell, 20, conspired to rob unsuspecting drivers by rear-ending them in a stolen Jeep Grand Cherokee (“the Jeep”) with the intent to rob the drivers when they exited their vehicles. After multiple attempted robberies, McNair-Matthews, the driver of the Jeep, rear-ended Victim-1, who was on her way to work, in Pennsylvania, causing Victim-1 to pull over after crossing into Delaware. McNair-Matthews then approached Victim-1’s vehicle, brandished and pointed a privately made firearm, commonly referred to as a ghost gun, at Victim-1, and then forced Victim-1 back inside Victim-1’s car at gunpoint. McNair-Matthews then drove Victim-1, against her will, in Victim-1’s vehicle from Delaware into Pennsylvania. During the ride, McNair-Matthews forced Victim-1 to disrobe, demanded Victim-1’s PIN code, and digitally penetrated her against her will. After arriving in Pennsylvania, McNair-Matthews then forcibly raped and robbed Victim-1 of personal property at gunpoint. After raping and robbing Victim-1, McNair-Matthews abandoned Victim-1, took Victim-1’s car, and fled. McNair-Matthews then drove Victim-1’s car to Delaware convenience stores and withdrew money from Victim-1’s bank accounts via ATM transactions.
McNair-Matthews then reunited with Hinson, Powell, and Caldwell in Wilmington, Delaware and delivered them Victim-1’s bank cards, Victim-1’s PIN, and the ghost gun. At McNair-Matthews’ direction, Hinson, Powell, and Caldwell then cleaned Victim-1’s car and removed personal property, including a designer purse, from Victim-1’s vehicle. Hinson and Caldwell then travelled in a stolen Nissan Pathfinder to local gas stations to withdraw money from ATMs. McNair-Matthews, who attempted to evade detection by switching clothes, and Powell drove the stolen Jeep to a Wilmington, Delaware gas station to meet Hinson and Caldwell.
Law enforcement tracked the Defendants to that Wilmington gas station. On sight, McNair-Matthews and Powell led law enforcement on a high-speed chase in the Jeep and evaded capture. Shortly thereafter, Hinson and Caldwell attempted to rendezvous with McNair-Matthews and Powell in Pennsylvania. While on I-95 North, Hinson and Caldwell, in the stolen Nissan Pathfinder, collided with another vehicle. After the collision, Caldwell brandished and pointed the ghost gun given to him by McNair-Matthews at the driver of the other car. Later, while travelling back to Delaware from Pennsylvania on I-95 South, Hinson and Caldwell led law enforcement on a miles-long high-speed chase before colliding with another vehicle and crashing into an exit ramp sign. Hinson and Caldwell fled on foot, tossed the ghost gun, but were quickly apprehended. Powell was arrested on April 17, 2023. Defendant McNair was arrested that same day in Maryland, after fleeing from law enforcement.
All defendants are charged with Conspiracy to Commit Hobbs Act Robbery, Carjacking, Hobbs Act Robbery, and Brandishing and Use of a Firearm in Relation to a Hobbs Act Robbery charge. McNair-Matthews is also charged with Kidnapping causing serious bodily injury and brandishing and use of a firearm during his rape and robbery of Victim-1. Hinson, Caldwell, and Powell are charged with Accessory After the Fact for their role in Victim-1’s kidnapping. If convicted, they face a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In announcing the charges, U.S. Attorney Weiss, Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office, and Delaware State Police Troop 2 Commander Capt. John Laird, Jr. commended the work of those who investigated the case, including the Delaware State Police Criminal Investigations Unit, FBI's Delaware Violent Crime and Safe Streets Taskforce, Pennsylvania State Police, Wilmington Police Department, Maryland State Police, U.S. Marshals Service, and the Delaware Department of Justice. Assistant United States Attorneys Kevin P. Pierce and Samuel S. Frey and Special Assistant United States Attorney Diana Dunn are assigned to prosecute the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case Nos. 23-68.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Four Indicted for Money Laundering in Prolific Human Smuggling Network TakedownRead the Press Release
Note: This release has been updated to reflect the latest arrest statistics for Joint Task Force Alpha.
A federal grand jury in the Southern District of Texas has returned a superseding indictment charging four defendants with conspiracy to launder money.
The new charges were filed against Erminia Serrano Piedra, aka Irma, aka Boss Lady, 32, of Elgin, Texas; Oscar Angel Monroy Alcibar, aka Pelon, 40, also of Elgin; Pedro Hairo Abrigo, 34, of Killeen, Texas; and Juan Diego Martinez-Rodriguez, aka Gavilan, 38, of Dale, Texas.
As alleged in the superseding indictment, the defendants conspired to engage in financial transactions designed to conceal the nature, location, source, ownership, and control of ill-gotten proceeds of illicit human smuggling and the unlawful harboring and transportation of undocumented aliens. The leaders of the organization allegedly recruited and used straw persons to accept human smuggling proceeds in their bank accounts and then transferred these proceeds to the leaders under the pretense of “work” payments for construction. The defendants also allegedly used businesses and business accounts to transfer the human smuggling proceeds. In addition, the defendants allegedly recruited individuals to accept human smuggling proceeds in the form of cash in exchange for checks from the recruited individuals’ business bank accounts.
The superseding indictment also notices the criminal forfeiture of three properties with values currently estimated at approximately $2.275 million, $515,000, and $344,000, as well as money judgments amounting to at least $2,945,027.
Three of the four defendants previously were charged with human smuggling in an indictment filed in the Southern District of Texas and unsealed on Sept. 13, 2022. That indictment was the culmination of a significant enforcement operation to disrupt and dismantle an alleged prolific human smuggling organization operating in Texas and elsewhere. That operation resulted in the arrests of 14 alleged human smugglers alleged to be members of a human smuggling organization led by Piedra that facilitated the unlawful transportation and movement of hundreds of migrants within the United States and harbored and concealed those migrants from law enforcement detection. The migrants were citizens of Mexico, Guatemala, and Colombia, and they or their families allegedly paid members of the human smuggling organization to help them travel unlawfully to and within the United States. According to the indictment, the human smuggling organization used drivers to pick up migrants near the U.S.-Mexico border and transport them into the interior of the United States, often harboring them at “stash houses” along the way in locations such as Laredo and Austin, Texas. Drivers for the human smuggling organization allegedly hid migrants in suitcases placed in pickup trucks and crammed migrants in the back of tractor-trailers, covered beds of pickup trucks, repurposed water tankers, and wooden crates strapped to flatbed trailers. These methods allegedly placed the migrants’ lives in danger, because they were frequently held in confined spaces with little ventilation, which became overheated, and they were driven at high speeds with no vehicle safety devices.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas, and Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI) made the announcement.
HSI Laredo, along with Customs and Border Protection’s (CBP) U.S. Border Patrol Laredo Sector and Department of Homeland Security Office of Inspector General (DHS-OIG), led the investigation and received substantial assistance from HSI offices in Austin, San Antonio, Waco, and Corpus Christi, Texas; HSI New Orleans; HSI Gulfport, Mississippi; HSI Mobile, Alabama; HSI West Palm Beach, Florida; HSI’s Human Smuggling Unit in Washington, D.C.; CBP’s National Targeting Center; the U.S. Marshals Service; Immigration and Customs Enforcement’s Enforcement and Removal Operations – Austin; and the Treasury Executive Office for Asset Forfeiture. Police departments in Laredo, Killeen, Elgin, and Round Rock, Texas; the Wiggins, Mississippi Police Department; the Bogalusa, Louisiana Police Department; the Webb County Constable’s Office; the Webb County District Attorney’s Office; sheriffs’ offices in Webb, Bastrop, and Caldwell Counties in Texas; sheriffs’ offices in Harrison, George, and Stone Counties in Mississippi; the Mobile County, Alabama Sheriff’s Office; sheriffs’ offices in Jefferson and Washington Parishes in Louisiana; the Mississippi Bureau of Narcotics; and the Louisiana State Police also provided substantial assistance.
Trial Attorneys Christian Levesque and Angela Buckner of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), Trial Attorney Daria Andryushchenko of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Jennifer Day for the Southern District of Texas are prosecuting the case, with substantial assistance from MLARS Financial Investigator Kelly O’Mara, the Criminal Division’s Office of Enforcement Operations’ (OEO) Electronic Surveillance Unit (ESU), and ESU Acting Deputy Chief Jessica Reid.
The indictments against these defendants were brought under Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland created JFTA in June 2021 in partnership with DHS to strengthen the department’s overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, DHS, and other interagency law enforcement participants, and with foreign law enforcement partners, including in El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations who most significantly impact the United States; and coordinated significant smuggling indictments and extradition efforts in U.S. Attorneys’ Offices across the country. To date, JTFA’s work has resulted in over 200 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; several dozen convictions; significant jail sentences imposed; and substantial asset forfeiture. JTFA is comprised of detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of Texas, Western District of Texas, District of New Mexico, District of Arizona, and Southern District of California. Numerous components of the Justice Department’s Criminal Division are part of JTFA, led by HRSP, and including the Office of Prosecutorial Development, Assistance, and Training, the Narcotic and Dangerous Drug Section, MLARS, OEO, the Office of International Affairs, and the Organized Crime and Gang Section. JTFA is made possible by substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration, and other partners.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Inmate Sentenced for Involuntary ManslaughterRead the Press Release
Jackson, MS – A Jamaican national was sentenced to 15 months in prison for involuntary manslaughter, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
Michael Phillips, 47, was sentenced in U.S. District Court in Jackson
According to court documents, on or about July 2, 2017, during an altercation with another inmate at the Federal Correctional Complex in Yazoo City, Mississippi, Phillips punched the other inmate causing him to fall backwards into a metal locker. The other inmate hit the back of his head on the locker, and he died as a result of his injuries.
Phillips pled guilty on April 4, 2023, to involuntary manslaughter.
The case was investigated by the Federal Bureau of Investigation.
Special Assistant United States Attorney Joshua Robles and Assistant United States Attorney Kimberly Purdie prosecuted the case.
Former Erie Man Sentenced to 5 Years in Prison for Malicious Destruction of Property by FireRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to five years in jail and ordered to pay $3,295 in restitution on his conviction of malicious destruction of property by fire, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Melquan Barnett, 31.
According to information presented to the court, Barnett set fire to the Ember + Forge building located at 401 State Street in Erie on May 30, 2020.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Erie Police Department for the investigation leading to the successful prosecution of Barnett.
Former Coach from Pecos Sentenced to 30 Years in Prison for Sextortion SchemeRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that Joshua Rico was sentenced to 30 years in prison. Rico, 27, of Pecos, New Mexico, pleaded guilty on Dec. 22, 2022, to five counts of coercion and enticement of minors.
A federal grand jury indicted Rico on May 12, 2021. According to court documents, beginning as early as January 2018, Rico used multiple profiles on the social media platform Snapchat to coerce female high school students, some of which he was familiar with from his job as the assistant basketball coach at a local high school, into sending him sexually explicit photos and videos and engage in sexual acts. Rico used fictitious profiles under the names “Chris Lujan” and “Erik Romero” as well as a profile in his own name to threaten, coerce and manipulate at least four victims who were between 14 and 16 years old.
In each case, Rico used one or both of his fake profiles to persuade the victims into sending compromising photos, then used the threat of exposing the photos to coerce the victims into engaging in sexual acts and sending him videos of the acts. In two instances, after using a fake profile to demand that the victims engage in sexual acts and provide videos, he offered to “help” the victims by allowing them to perform the sexual act with him. Rico coerced at least one of the victims into engaging in sexual acts with him.
Rico’s scheme continued unchecked for nearly three years until one of the victims pieced together that Rico and “Erik” were the same person and reported the conduct to her school and the New Mexico State Police. Through diligent investigation, law enforcement was able to confirm that Rico was also “Chris Lujan” and “Erik Romero.”
“This case highlights the importance and benefit of law enforcement partnerships and task forces. Each agency played a vital role in developing a comprehensive case for prosecutors,” said FBI Special Agent in Charge Raul Bujanda. “The successful multi-agency investigation and prosecution by the U.S. Attorney’s Office will keep a dangerous predator out of the school system and will prevent him from targeting additional minors.”
“Our mission is clear: to protect the innocent, to uphold the rule of law, and to ensure that those who engage in such malicious activities face the consequences of their actions,” said U.S. Attorney Alexander M.M. Uballez. “Together with our law enforcement partners, we will continue to safeguard our children, schools, neighborhoods, and communities. We call upon everyone to be vigilant regarding the online activity of our children and report any suspicious or concerning conduct. The safety of our children is a shared responsibility, and we must work hand-in-hand to maintain their wellbeing – whether at school, in the community, or on the internet. This sentence should send a message to would-be predators, especially those who work in positions of trust with children, that sextortion is a heinous crime that will be punished with decades in prison.”
Upon his release from prison, Rico will be required to register as a sex offender and serve a 20-year term of supervised release.
The New Mexico State Police, the FBI, and the Regional Computer Forensic Laboratory investigated this case as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program is a nation-wide network of task forces including over 90 federal, state, local and tribal law enforcement agencies in New Mexico dedicated to investigating, prosecuting and developing effective responses to Internet crimes against children.
Assistant U.S. Attorneys Sarah Mease and Jaymie L. Roybal are prosecuting the case as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
For more information on sextortion and how to get help, visit the FBI website.
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Firearms Smuggler Sentenced for Conspiracy to Smuggle Goods from the United StatesRead the Press Release
TUCSON, Ariz. – Jorge Alexis Hernandez-Martinez, 25, of Nogales, Sonora, Mexico, was sentenced on July 14, 2023, by United States District Judge Scott H. Rash to 36 months in prison, followed by three years of supervised release. Hernandez-Martinez pleaded guilty to Conspiracy to Smuggle Goods from the United States.
Hernandez-Martinez and his co-conspirators obtained firearms and ammunition from licensed firearms dealers within Arizona with the intent to smuggle them into Mexico. In January 2020, Hernandez-Martinez and his co-conspirators obtained 6,800 rounds of 9mm ammunition, which are designated on the United States Commerce Control List as prohibited by law for export from the United States into Mexico without a valid license. Neither Hernandez-Martinez nor any other individual involved in the conspiracy to export firearms and ammunition had a license or any other lawful authority to export them from the United States into Mexico.
Homeland Security Investigations conducted the investigation in this case. Assistant U.S. Attorneys Brandon Bolling and Sandra M. Hansen, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-01250-SHR-EJM
RELEASE NUMBER: 2023-115_Hernandez-Martinez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Final Defendant in Duluth Area Methamphetamine Distribution Ring Sentenced to PrisonRead the Press Release
MINNEAPOLIS – A Duluth man was sentenced to 170 months in prison followed by five years of supervised release for his role in a methamphetamine distribution conspiracy, announced United States Attorney Andrew M. Luger.
According to court documents, Evan Andrew Lautigar, 33, and his co-conspirators Matthew James Cuypers, 41, John Arvid Sundquist, 34, and Jacob Lee Kivela-Sandnas, 34, arranged to drive to California to buy methamphetamine from a supplier and transport it back to Minnesota for distribution in and around the Duluth area.
According to court documents, in early 2022, the DEA began investigating a drug trafficking organization operating in the Duluth area. The investigation revealed that in February 2022, Cuypers was en route from California to Minnesota after picking up a load of methamphetamine. A South Dakota Highway Patrol officer conducted a traffic stop of a 2011 Kia Sorrento for a speeding violation. Cuypers was the driver and Sundquist was the passenger. A search of the vehicle revealed approximately 27 pounds of methamphetamine.
On April 7, 2022, deputies with the Carlton County Sheriff’s Office conducted a traffic stop of a 2009 Mercedes Benz driven by Lautigar. Officers executed a previously obtained search warrant on the vehicle and recovered approximately 15 pounds of methamphetamine.
All four defendants pleaded guilty to conspiracy to distribute methamphetamine and were sentenced by Judge Joan N. Ericksen. Lautigar was sentenced on July 25, 2023, to 170 months in prison; Cuypers was sentenced on June 13, 2023, to 150 months in prison; Sundquist was sentenced on January 11, 2023, to 60 months in prison; and Kivela-Sandnas was sentenced on May 11, 2023, to 155 months in prison.
This case is the result of an investigation conducted by the Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Carlton County Sheriff’s Office, the South Dakota Highway Patrol, the Duluth Police Department, and the St. Louis County Sheriff’s Office.
This case was prosecuted by Assistant U.S. Attorneys Andrew S. Dunne and David P. Steinkamp.
Fifteen Arrested in FBI Gun, Drug Bust Involving 200+ AgentRead the Press Release
Fifteen people were arrested in a large-scale gun and drug bust Thursday, U.S. Attorney for the Northern District of Texas Leigha Simonton announced today.
During the operation – which involved more than 200 officers and agents from FBI Dallas, the Dallas Police Department, the Dallas Sheriff’s Office, and other local agencies – law enforcement seized more than 540 grams of cocaine, more than 1,100 grams of methamphetamine, more than 150 grams of alprazolam, and more than 7 grams of fentanyl, along with nine firearms and over $10,000 in cash.
The defendants were charged in a 16-count indictment with a variety of gun and drug crimes, including possession with intent to distribute cocaine and felon in possession of firearms. They began making their initial appearances in federal court Friday morning before U.S. Magistrate Judge Irma Carrillo Ramirez.
“Prosecuting these worst-of-the-worst offenders not only holds them accountable for past wrongs, but it also prevents them from committing future crimes. It makes our streets safer, and our communities sleep more soundly at night,” U.S. Attorney Leigha Simonton said at an FBI press conference Friday morning. “An operation like this takes commitment – commitment of time, commitment of resources, and above all, psychological commitment – knowingly risking one’s own personal safety to ensure the security of the community… This case was almost exactly two years in the making. After yesterday, we’re confident it was worth the effort.”
"It's not our goal to just put individuals in jail for a few days, but to build cases that cut into the capabilities of these gangs and criminal enterprises, putting the most violent offenders and facilitators behind bars for as long as we possibly can," said FBI Special Agent in Charge of the Dallas Field Office Chad Yarbrough said at the press conference.”
Dallas Police Chief Eddie Garcia said, “I want to thank the FBI Dallas Field Office, the Dallas County Sheriff’s Department, the U.S. Attorney’s Office for the Northern District of Texas, and the other state and local agencies for their partnerships in this two year-long investigation. It takes all of us to fight and prevent crime and criminal activity. Violent crime continues to trend downward in the city of Dallas and not by accident. It is because of the hard work of the men and women of our agencies, along with our community and city leaders that we see the needle trending down. We are committed to making our neighborhoods safer.”
Those charged include:
- Alicia Slaughter: conspiracy to possess with intent to distribute a controlled substance, possession with intent to distribute cocaine
- Courtney Smith: conspiracy to possess with intent to distribute a controlled substance, possession with intent to distribute cocaine
- Edward Williams, aka “Lil ‘E:” conspiracy to possess with intent to distribute a controlled substance, possession with intent to distribute cocaine, convicted felon in possession of a firearm
- Xavier Barnes: conspiracy to possess with intent to distribute a controlled substance, possession with intent to distribute cocaine
- Jordan Davis: conspiracy to possess with intent to distribute a controlled substance, possession with intent to distribute cocaine
- Ladarius Holly: convicted felon in possession of a firearm
- Quentavis Zikeiy Hawkins, aka “Luddy:” conspiracy to possess with intent to distribute a controlled substance, possession with intent to distribute cocaine
- Lucis Lugo: conspiracy to possess with intent to distribute a controlled substance, possession with intent to distribute cocaine
- Sebastian Medlock, aka “Blue:” convicted felon in possession of a firearm
- Dmarcus Quartez Roderick Moton, aka “Little Cheese:” conspiracy to possess with intent to distribute a controlled substance, possession with intent to distribute cocaine, possession of an unregistered firearm (Glock switch)
- Christopher Samuel: convicted felon in possession of a firearm
- Perry Taylor: conspiracy to possess with intent to distribute a controlled substance, possession with intent to distribute cocaine
- Anthony Joe Womack: convicted felon in possession of a firearm
- Davonia Hart: conspiracy to possess with intent to distribute a controlled substance
- Brandon Bedford: conspiracy to possess with intent to distribute a controlled substance, convicted felon in possession of a firearm
Many of the defendants arrested Friday had extensive criminal histories, including assault, aggravated robbery, arson, deadly conduct with a firearm, and manufacture and delivery of controlled substances. Many were allegedly armed, including one who allegedly carried a Glock switch, a dangerous device that converts a regular semi-automatic weapon into a machinegun capable of continuous fire with a single depression of the trigger.
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, some face as many as 40 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office, the Dallas Police Department, and the Dallas Sheriff’s Office conducted the operation with the assistance of the Irving Police Department, the Carrollton Police Department, and the Texas Department of Criminal Justice’s Office of Inspector General, which contributed officers to the FBI’s Safe Streets Task Force. Assistant U.S. Attorney John Kull is prosecuting the case.
Fentanyl Trafficker Sentenced to 12 Years in Prison for Firearms Violations and Drug DistributionRead the Press Release
MINNEAPOLIS – A St. Paul man has been sentenced to 144 months in prison followed by five years of supervised release for fentanyl trafficking and illegal possession of a firearm, announced United States Attorney Andrew M. Luger.
According to court documents, in 2021 and 2022, Keonee Nasier Shaffer-Frazier, 23, and his co-conspirators were part of a drug trafficking ring that obtained “M30” or “MBox” fentanyl pills from a source of supply outside of Minnesota and transported and distributed the pills across the Twin Cities region. Shaffer-Frazier regularly distributed the fentanyl pills in quantities ranging from 100 to 1,000 or more at a time.
According to court documents, during the course of the investigation, law enforcement conducted seizure operations in March 2022 and obtained approximately 57,000 M30 fentanyl pills, more than $83,000 in U.S. currency, body armor, and firearms from Shaffer-Frazier and his conspirators. Law enforcement also recovered two loaded semi-automatic pistols from Shaffer-Frazier’s white Audi. He was arrested in March 2022, charged in Hennepin County, and obtained release on bail.
Afterward, in September 2022, law enforcement arrested Shaffer-Frazier after a short foot chase and recovered approximately $7,050 in U.S. currency from his person. Law enforcement searched Shaffer-Frazier’s new vehicle, a black Audi Q7, and recovered a Glock model 22 .40 caliber semiautomatic pistol from the driver’s side door pocket. The weapon was loaded with an extended magazine.
Because Shaffer-Frazier has a prior felony conviction, he was prohibited under federal law from possessing firearms or ammunition at any time.
On February 1, 2023, Shaffer-Frazier pleaded guilty to one count of conspiracy to distribute fentanyl and a separate count of possession of a firearm as a felon. He was sentenced yesterday before Senior Judge Michael J. Davis.
This case is the result of an investigation conducted by the Drug Enforcement Administration, the U.S. Postal Inspection Service, the Hennepin County Sheriff’s Office, the Southwest Hennepin Drug Task Force, the Dakota County Drug Task Force, the Fridley Police Department, and the St. Paul Police Department.
Assistant U.S. Attorney Allen A. Slaughter Jr. prosecuted the case.
Federal Grand Jury B Indictments Announced- July 2023Read the Press Release
TULSA, Okla. – United States Attorney Clint Johnson today announced the results of the July 2023 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Kelsey Dawn Lipp. First Degree Murder in Indian Country; Robbery in Indian Country; and Kidnapping in Indian Country. Kelsey Dawn Lipp, 28, is a Cherokee citizen, and is charged for allegedly arranging a robbery and kidnapping that resulted in the victim’s death. Tulsa Police Department and the FBI are the investigating agencies. Assistant U.S. Attorneys David A. Nasar and Niko Boulieris are prosecuting the case. 23-CR-243
Jared Kyle Childers. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Kidnapping in Indian Country; and Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. Jared Kyle Childers, 20, a Cherokee citizen of Salina, is charged after allegedly brandishing a weapon while assaulting and kidnapping the victim with intent to do bodily harm. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency. Assistant U.S. Attorney Shakema Onias is prosecuting the case. 23-CR-245
Leo Steban Chumwalooky. Sexual Abuse of a Minor in Indian Country; and Incest in Indian Country. Leo Steban Chumwalooky, 20, and a Cherokee citizen is charged after he allegedly engaged in and attempted to engage in sexual acts with a child between 12 and 16 years of age. Cherokee Nation Marshal Service and the FBI are the investigative agencies. Assistant U.S. Attorney Scott Dunn is prosecuting the case. 23-CR-246
Lee Finch Jr. Travel with Intent to Engage in Illicit Sexual Conduct. Lee Finch Jr. is charged with travel with intent to engage in illicit sexual conduct in a superseding indictment. A previous indictment on April 18, charged Finch with coercion and enticement of a minor. The Tulsa Police Department and Homeland Security Investigations are the investigating agencies. Assistant U.S. Attorney Scott Dunn is prosecuting the case. 23-CR-148
Hayden Barclay Greene. Assault of an Intimate/Dating Partner by Strangling and Attempting to Strangle in Indian Country; Assault Resulting in Serious Bodily Injury in Indian Country; and Child Neglect in Indian Country. Hayden Barclay Greene, 45, is a member of the Choctaw Nation. Greene allegedly assaulted and strangled his intimate partner resulting in serious bodily harm in the presence of a minor. The Creek County Sheriff’s Office, Muscogee Creek Nation Lighthorse Police, and the FBI are the investigating agencies. Assistant U.S. Attorney Stacey Todd is prosecuting the case. 23-CR-247
Zulma Martinez. Possession of Methamphetamine with intent to distribute. Zulma Martinez, 46, a Mexican national is charged for allegedly possessing meth with the intent to distribute. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigating agencies. Assistant U.S. Attorney Adam Bailey is prosecuting the case. 23-CR-248
Rolland James Miles. Carjacking. Rolland James Miles, 20, a Muscogee Creek Nation citizen is charged with carjacking after allegedly attempting to take a motor vehicle by force, violence, intimidation, and with intent to cause death and serious bodily harm. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency. Assistant U.S. Attorneys Matt Cyran and Dennis Fries are prosecuting the case. 23-CR-249
Jose Becerra-Ruiz. Distribution of Meth. Jose Becerra-Ruiz, 30, of Claremore, is charged for allegedly distributing meth. The Drug Enforcement Administration is the investigating agency. Assistant U.S. Attorney Adam Bailey is prosecuting the case. 23-CR-244
EDVA to Participate in Community Events During National Night OutRead the Press Release
ALEXANDRIA, Va.— The U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) will join community organizers, neighbors, and law enforcement partners to participate in National Night Out events on August 1, 2023. During this year’s National Night Out, U.S. Attorney Jessica D. Aber and members of the office will attend community events in Fairfax County, Alexandria City, Hampton Roads, and the greater Richmond area. One EDVA employee has even planned a NNO event for her neighborhood.
“National Night Out is a fantastic and fun opportunity both for citizens and law enforcement to meet, interact and build relationships.” said U.S. Attorney Jessica D. Aber. “EDVA cares deeply about helping to restore trust between communities and law enforcement, including the Department of Justice. These connections are critical for public safety, as well as the rule of law.”
National Night Out is an annual community-building campaign that promotes partnerships and camaraderie between law enforcement and the communities they serve to make our neighborhoods safer places to live. Millions take part in National Night Out across thousands of communities throughout the country on the first Tuesday of August in most areas of the country.
National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization.
Coordinated by local law enforcement and trained volunteers, National Night Out provides a great opportunity to bring police and neighbors together under positive circumstances. Neighborhoods host block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel, and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe.
To find a National Night Out event near you, contact your local police department. For more information on National Night Out, visit https://natw.org/.
Dual citizen gets max for laundering romance scam proceedsRead the Press Release
HOUSTON – A 39-year-old man who holds citizenship in the United States and Ghana has been sent to prison for operating an illegal money transmitting business, announced U.S. Attorney Alamdar S. Hamdani.
Kenneth Anim, who had resided in the Houston and Richmond areas, pleaded guilty April 27.
U.S. District Judge Ewing Werlein has now ordered Anim to serve 60 months in federal prison to be immediately followed by three years of supervised release and was ordered to pay $2.2 million in restitution. In handing down the sentence, the court noted the length of the scheme and that while Anim may not have known who the victims were specifically, they were in fact vulnerable members of society.
“Anim profited off the elderly and vulnerable. He knew victims were being defrauded but helped launder the money anyway by operating as an illegal money transmitter,” said Hamdani. “The sentence shows that we will not let money launderers for romance scammers try to hide behind the excuse that they didn’t know details about where the money was coming from.”
“Kenneth Anim was a mule who, for years, knew that the millions of dollars he was depositing in numerous banks were stolen from victims through false promises,” said Special Agent in Charge James Smith of the FBI Houston field office. “Yet his greed was stronger than his principles, and he chose to continue to receive money from romance scam victims, most of them senior citizens. As long as con artists like Anim exist and victims continue to fall for their lies, the FBI will continue to call attention to these scams and go after the people behind them.”
Anim admitted that from 2014 to 2019, he operated an unlicensed money transmitting business to launder funds from wire fraud schemes including internet fraud and romance scams. Anim ran the unlicensed money transmitting business by using shell companies that existed only on paper.
As part of the plea, he acknowledged opening and maintaining bank accounts to collect proceeds from internet and romance fraud schemes to send the money to himself, co-conspirators and overseas.
A romance scam occurs when criminals adopt fake online identities to gain a victim’s affection and trust. The scammer then uses the illusion of a close relationship to induce the victim, under false pretenses, to send money to the scammer.
Amin has been and will remain in custody pending U.S. Bureau of Prisons facility to be determined in the near future.
FBI conducted the investigation. Assistant U.S. Attorneys Belinda Beek and Grace Murphy are prosecuting the case.
Detroit Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – Kristopher D. Thomas, also known as “Rio,” 22, of Detroit Michigan, was sentenced today to one year and five months in prison, to be followed by three years of supervised release, for distribution of fentanyl.
According to court documents and statements made in court, on Oct. 14, 2021, Thomas sold a quantity of fentanyl to a confidential informant at an Amigo residence where Thomas was staying in Raleigh County, West Virginia. Thomas admitted to that transaction and further admitted to selling fentanyl to a confidential informant in Daniels, Raleigh County, on April 12 and April 22, 2021. The West Virginia State Police Forensic Laboratory confirmed the controlled substances from all three transactions contained fentanyl.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit. The Beckley/Raleigh County Drug and Violent Crime Unit consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Andrew D. Isabell prosecuted the case.
The case is a result of “Operation Wolverine Carousel,” a months-long investigation into the widespread distribution of heroin and fentanyl in Raleigh and Fayette counties.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-28.
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Convicted Sex Offender Sentenced to 11 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Joshua Pedersen, 46, from Moville, Iowa, was sentenced July 28, 2023, to 11 years in federal prison for Possession of Child Pornography.
Evidence in the case established that between November 2018, and December 2019, Pedersen used Internet-based, peer-to-peer (P2P) networks “Kik” and “Skout” to knowingly receive and distribute child pornography. Pedersen also admitted he distributed child pornography to a minor to persuade the minor to create and send him child pornography. Pedersen has a prior conviction for Dissemination and Exhibition of Obscene Materials to Minors, and multiple convictions for Failure to Register as a Sex Offender.
Pedersen was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 132 months’ imprisonment. He was also fined a total of $5,000. Pedersen must also serve a 5-year term of supervised released following the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by Homeland Security Investigations and was prosecuted by Assistant United States Attorney Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3017.
Follow us on Twitter @USAO_NDIA.
Colorado Hunter Sentenced for Lacey Act Violation Stemming from Nebraska HuntRead the Press Release
Acting United States Attorney Susan Lehr announced that Michael T. Ban, 50, of Elbert, Colorado, was sentenced today in federal court in Lincoln, Nebraska, for violations of the Lacey Act. Senior United States District Judge John M. Gerrard sentenced Ban to 2 years’ probation for unlawful transportation of wildlife in interstate commerce. Ban was ordered to pay a fine in the amount of $5,000 and pay restitution in the amount of $4,000. As part of his probation terms, Ban shall not hunt, fish, trap, provide guiding or outfitting services, or assist or be present with anyone engaged in those activities for one year.
A joint investigation conducted by the United States Fish and Wildlife Service, Office of Law Enforcement and the Nebraska Game and Parks Commission, Law Enforcement Division determined that in September of 2019, Ban traveled to Nebraska to conduct an archery mule deer hunt. During the hunt, Ban unlawfully shot a mule deer in Lincoln County, Nebraska, and subsequently transported a taxidermy shoulder mount including parts of the unlawfully taken trophy deer back to his Colorado residence.
As contained in the plea agreement accepted by the Court and admitted by Ban, the investigation determined that in the fall of 2019, Ban traveled to Noble Outdoors, a commercial big game guiding business located in North Platte, Nebraska, to hunt mule deer during the archery season. During the hunt, Ban unlawfully shot a mule deer buck with 5 X 5 antlers in velvet without a valid deer permit and during closed season hours at approximately 11:12 P.M. on September 6, 2019. After taking the deer while guided and accompanied by the Noble Outdoors owner, Ban purchased a Nebraska Non-resident Archery Deer Permit the following day in order to conceal the fact the deer was taken without a permit. Under Nebraska state law, hunters are required to possess a valid permit and habitat stamp prior to hunting or taking mule deer and are authorized to hunt only during the legal shooting hours from 30 minutes before sunrise to 30 minutes after sunset.
Today’s sentencing is part of the ongoing prosecution of numerous defendants related to violations committed by Noble Outdoors and its owner, associates, and clients between 2015 and 2021. In total, 17 defendants have been sentenced and ordered to pay a more than $65,000 in fines and restitution for state and federal violations related to the interstate transport of unlawfully taken wildlife, shooting deer from the road; taking deer and pronghorn without a valid permit, taking deer with a firearm during archery season, taking deer during night-time closed season hours; dumping carcasses in waters of the state; hunting without permission; and improperly checking or registering big game.
The operation was a joint investigation conducted by the United States Fish and Wildlife Service, Office of Law Enforcement and the Nebraska Game and Parks Commission, Law Enforcement Division.
Chittenden County Man Sentenced for Threatening State OfficialsRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Josh Puma, 36, formerly of Chittenden County, was sentenced Wednesday, July 26 in the United States District Court in Rutland to 20 months of imprisonment. Chief United States District Judge Geoffrey Crawford also ordered that Puma serve three years of supervised release following his period of incarceration.
According to court documents, between July 2021 and January 2022, Puma called a Vermont Department of Corrections reporting line hundreds of times. Puma was charged by federal indictment for three of those calls in which he (1) threatened to kill a state court judge and a defense attorney, (2) threatened to kill a state court judge and sexually assault a state prosecutor, and (3) threatened to kill a state court judge. Puma pleaded guilty to all three charged threats transmitted in interstate commerce. Puma’s threats made over the reporting line were recorded, and in those recorded calls, which in total numbered close to 300, Puma specifically described his intention upon release from jail to kill and maim those state officials, in addition to harming and killing other members of the legal community.
As described in court documents, Puma has mental health issues and was previously ordered hospitalized by the state court. In imposing the 20-month sentence, Chief Judge Crawford varied downward from the otherwise applicable advisory Federal Sentencing Guidelines in part to recognize Puma’s mental health issues.
This case was investigated by the Vermont State Police.
Assistant U.S. Attorney Wendy L. Fuller represented the government. Assistant Federal Public Defender Sara Puls represented Puma.
Chicago Rapper "G Herbo" Pleads Guilty to Role in Nationwide Fraud Conspiracy and Making False StatementsRead the Press Release
BOSTON – A Chicago-area rap artist pleaded guilty today in federal court in Springfield, Mass. to his role in a nationwide wire fraud conspiracy that victimized businesses across the United States and then making a false statement to a federal agent to conceal his involvement.
Herbert Wright, 25, a/k/a “G Herbo,” pleaded guilty to one count of conspiracy to commit wire fraud and one count of making a false statement to a federal official. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 7, 2023.
Wright was initially indicted by a federal grand jury in December 2020 along with five co-defendants, including rap promoter Antonio Strong, in connection with the alleged fraud conspiracy. Wright was subsequently charged with making false statements in May 2021.
“Mr. Wright used stolen account information as his very own unlimited funding source, using victims’ payment cards to finance an extravagant lifestyle and advance his career. Mr. Wright’s conduct affected countless businesses and individuals across the United States who had to foot his nearly $140,000 bill in unauthorized transactions. Mr. Wright flaunted his lavish spending on social media, in music videos and in industry news. This office and our law enforcement partners are committed to ensuring that individuals and businesses are protected against fraudsters. This case should serve as a reminder that if you break the law, you will be prosecuted and held accountable – regardless of who you are,” said Acting United States Attorney Joshua S. Levy.
“The willful and intentional use of false statements during a federal criminal investigation threatens not only the integrity of an individual case but also a foundational tenet of our democracy at large,” said Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office. “Today’s announcement represents our communal dedication to the truth and I am proud of the investigative team of special agents and federal partners at the Massachusetts U.S. Attorney’s Office for the essential work behind these charges.”
Beginning in at least March 2017 through November 2018, Wright and, allegedly, his co-defendants conspired to defraud numerous businesses and individuals throughout the United States by using unauthorized and stolen payment card account information of real individuals – including the actual cardholders’ names, addresses, security codes and account expiration dates. Generally, because the payment card information was authentic, the defrauded businesses and individuals successfully processed the fraudulent transactions and provided the goods and services to Wright and his alleged co-conspirators. The actual cardholders discovered these transactions on their accounts and disputed the charges with their card companies who then charged back the transactions to the businesses and individuals, which consequently suffered losses in the amounts of the unauthorized transactions.
According to court documents, Wright frequently asked Strong for a number of luxury goods or services, such as flights, vehicles (“whips”), or accommodation (“cribs”), which Strong allegedly often procured by fraud using the stolen payment card account information. This included: four private jet charters for a total cost of over $80,000; over $34,000 in exotic car rentals including a Mercedes Benz 5560 and a Cadillac Escalade; as well as an over $14,500 villa in Jamaica for which Wright also requested that Strong provide vehicles and an additional credit card account for his incidentals. During text message conversations, Wright acknowledged that it did not cost Strong anything to rent a vehicle for him, stating: “Extend that whip bro that b**** ain't for no month why you be lying […] You know it don't be costing you s*** to do that s*** dude!”
Wright also used the fraud proceeds to travel to various concert venues and to advance his career by posting photographs and/or videos of himself on the private jets, in the exotic cars and at the Jamaican villa on social media as well as in music videos. In addition, Wright allegedly helped Strong obtain two designer Yorkie puppies for over $10,000 from a business by falsely representing that Wright was the actual purchaser of the puppies and by concealing Strong’s actual identity from the business.
Additionally, according to court documents in November 2018, Wright falsely told a federal agent that he never worked with or was assisted by Strong; he never provided Strong any money; he never received anything of value from Strong; and he had no direct relationship with Strong. In fact, since at least 2016: (1) Strong worked with and assisted Wright; (2) Wright provided Strong money; (3) Wright received valuable goods from Strong, including private jet charters, luxury accommodations, and exotic car rentals; and (4) Wright had frequent direct contact with Strong, including phone conversations, text messages and Instagram messages.
Wright admitted, as part his guilty plea, that he was responsible for $139,878 in victim losses. Strong has pleaded not guilty and is awaiting trial.
The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of $250,000. The charge of false statements provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and USSS SAC Murphy made the announcement. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office and Trial Attorneys Andrew Tyler and Kyle Crawford of the Justice Department’s Criminal Division’s Fraud Section are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chelsea Man Arrested for Unlawful Trafficking of Machinegun Conversion DevicesRead the Press Release
BOSTON – A Chelsea man was arrested yesterday in connection with illegally selling machinegun conversion devices.
Michael Williams, 49, was charged with one count of transferring or possessing a machine gun. Williams will appear in federal court in Boston at 3 p.m. this afternoon.
According to the charging documents, in January 2023, Williams agreed to sell several machine gun conversion devices and other firearm accessories to an undercover federal agent. It is alleged that, following a series of communications, Williams met the undercover agent twice at a pre-arranged location. It is further alleged that on Jan. 12, 2023, Williams sold the first machinegun conversion device to the undercover agent and the following day, on Jan. 13, 2023, Williams sold two additional machine conversion devices to the undercover agent.
The charge of unlawful transferring or possession of a machinegun provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Chelsea Police Chief Keith Houghton made the announcement today. Assistant U.S. Attorney John T. Dawley of the Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
California Man Pleads Guilty to Securities Fraud for Orchestrating an Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Gustavo Guzman, 60, previously of Fullerton, Calif., pleaded guilty to securities fraud today for orchestrating a $2 million investment fraud scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and North Carolina Secretary of State Elaine F. Marshall join U.S. Attorney King in making the announcement.
According to admissions Guzman made in connection with his guilty plea and filed court documents, from April 2010 to August 2015, Guzman, through various entities he controlled, including G2 Asset Management and East Egg Private Equity, defrauded approximately 10 investors of at least $2 million, by falsely representing that he would use the investors’ money to trade in options and other similar investments. Instead of investing the funds as promised, Guzman stole a substantial portion of the investors’ money and used it to fund his personal lifestyle, including to make large credit card payments and cash withdrawals, and to pay for personal expenditures. Guzman suffered massive trading losses with the money that he did invest and used some of the victim’s money to make Ponzi-style payments to other investors. Guzman admitted that in order to conceal the trading losses and the fraudulent scheme, and to prevent his victims from redeeming their investments and complaining to authorities, he lied to his victims about the status of their investments, and provided them with fake documents, including sham IRS forms and fraudulent account statements.
Guzman has been in federal custody since he was extradited from Australia to the United States in November 2022. At sentencing, he faces a sentence of up to 20 years in prison and a $5 million fine. A sentencing date has not been set. The U.S. Securities and Exchange Commission conducted a parallel investigation that resulted in the entry of a default judgment against Guzman in Civil Action No. 3:17-cv-00276 (WDNC).
In making todays’ announcement, U.S. Attorney King commended the FBI in Charlotte and the Securities Division of the North Carolina Department of the Secretary of State for their investigation of the case. U.S. Attorney King also thanked the U.S. Marshals Service and the Justice Department’s Office of International Affairs for their significant support with the defendant’s extradition and with obtaining evidence from Australian authorities.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Business Owner Pleads Guilty in Massive International Scheme to Sell Pirated Business Telephone System Software LicensesRead the Press Release
OKLAHOMA CITY – A New Jersey man pleaded guilty today in the Western District of Oklahoma to participating in a massive international scheme to make millions of dollars by selling pirated business telephone system software licenses. The entire scheme allegedly resulted in the sale of software licenses with a retail value of over $88 million.
According to court documents, Jason M. Hines, aka Joe Brown, aka Chad Johnson, aka Justin Albaum, 43, of Caldwell, conspired with co-defendants Brad Pearce and Dusti Pearce – who jointly used the identity “Terri Jenkins” – to commit wire fraud. The scheme involved generating and then selling unauthorized Avaya Direct International (ADI) software licenses, which were used to unlock features of a popular telephone system used by thousands of companies around the globe. The ADI software licensing system has since been decommissioned.
Avaya Holdings Corporation, a multinational business communications company headquartered in California, sold a product called IP Office, a telephone system used by many midsize and small businesses in the United States and abroad. To enable additional functionality of IP Office, such as voicemail or telephones, customers had to purchase software licenses – which Avaya generated – from an authorized Avaya distributor or reseller. Avaya used software license keys to control access to Avaya’s copyright-protected software and to ensure that only customers who paid for the software could use it. In addition, Avaya required that each software license on an IP Office system be associated with the system’s Avaya Secure Digital (SD) card – a small flash memory card with a unique serial number that plugged into the IP Office manager computer – which the end user had to keep in its possession in order to use the licenses.
Hines operated Direct Business Services International (DBSI), formerly known as Dedicated Business Systems International, a New Jersey-based business communications systems provider and a de-authorized Avaya reseller. He bought ADI software license keys from Brad and Dusti Pearce under his own name and also using an alias, Joe Brown, and then sold them to resellers and end users around the globe. Brad Pearce, a long-time customer service employee at Avaya, allegedly used his system administrator privileges to generate those keys without authorization, creating tens of thousands of them that he sold to Hines and other customers. Brad Pearce’s wife, Dusti Pearce, is alleged to have handled accounting for the illegal business. Hines was by far the Pearces’ largest customer, buying over 55% of the stolen licenses, and significantly influenced how the scheme operated. In fact, Hines was one of the biggest users of the ADI license system in the world. As a result, Hines reaped millions of dollars from the fraud.
Hines pleaded guilty to conspiring to commit wire fraud. As part of the plea agreement, the United States has agreed not to advocate for more than 5 years in prison, and Hines must forfeit a money judgment of at least $2 million as well as make full restitution to his victims. A federal district court judge will determine any sentence after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Robert J. Troester for the Western District of Oklahoma, and Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office made the announcement.
The FBI is investigating the case. Assistant U.S. Attorneys Julia E. Barry and William Farrior for the Western District of Oklahoma and Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
Business Owner Pleads Guilty in Massive International Scheme to Sell Pirated Business Telephone System Software LicensesRead the Press Release
A New Jersey man pleaded guilty today in the Western District of Oklahoma to participating in a massive international scheme to make millions of dollars by selling pirated business telephone system software licenses. The entire scheme allegedly resulted in the sale of software licenses with a retail value of over $88 million.
According to court documents, Jason M. Hines, aka Joe Brown, aka Chad Johnson, aka Justin Albaum, 43, of Caldwell, conspired with co-defendants Brad Pearce and Dusti Pearce – who jointly used the identity “Terri Jenkins” – to commit wire fraud. The scheme involved generating and then selling unauthorized Avaya Direct International (ADI) software licenses, which were used to unlock features of a popular telephone system used by thousands of companies around the globe. The ADI software licensing system has since been decommissioned.
Avaya Holdings Corporation, a multinational business communications company headquartered in California, sold a product called IP Office, a telephone system used by many midsize and small businesses in the United States and abroad. To enable additional functionality of IP Office, such as voicemail or telephones, customers had to purchase software licenses – which Avaya generated – from an authorized Avaya distributor or reseller. Avaya used software license keys to control access to Avaya’s copyright-protected software and to ensure that only customers who paid for the software could use it. In addition, Avaya required that each software license on an IP Office system be associated with the system’s Avaya Secure Digital (SD) card – a small flash memory card with a unique serial number that plugged into the IP Office manager computer – which the end user had to keep in its possession to use the licenses.
Hines operated Direct Business Services International (DBSI), formerly known as Dedicated Business Systems International, a New Jersey-based business communications systems provider and a de-authorized Avaya reseller. He bought ADI software license keys from Brad and Dusti Pearce under his own name and also using an alias, Joe Brown, and then sold them to resellers and end users around the globe. Brad Pearce, a long-time customer service employee at Avaya, allegedly used his system administrator privileges to generate those keys without authorization, creating tens of thousands of them that he sold to Hines and other customers. Brad Pearce’s wife, Dusti Pearce, is alleged to have handled accounting for the illegal business. Hines was by far the Pearces’ largest customer, buying over 55% of the stolen licenses, and significantly influenced how the scheme operated. In fact, Hines was one of the biggest users of the ADI license system in the world. As a result, Hines reaped millions of dollars from the fraud.
Hines pleaded guilty to conspiracy to commit wire fraud. As part of the plea agreement, the United States has agreed not to advocate for more than five years in prison. The court has not yet set a sentencing date. Pursuant to the plea agreement, Hines must forfeit a money judgment of at least $2 million as well as make full restitution to his victims. A federal district court judge will determine any sentence after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Robert J. Troester for the Western District of Oklahoma, and Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office made the announcement.
The FBI is investigating the case.
Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Julia E. Barry and William Farrior for the Western District of Oklahoma are prosecuting the case.
Bristol Man Charged with Interstate Threatening and Stalking OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Bristol Police Chief Brian Gould today announced that DENNIS JOHN HERNANDEZ, also known as “DJ Hernandez” and “Jonathan Hernandez,” 37, of Bristol, has been charged by federal criminal complaint with interstate threatening and stalking offenses.
As alleged in the complaint, on July 6 and 7, 2023, Hernandez communicated with an individual via Facebook Messenger and made multiple statements threatening to carry out a shooting incident at UConn. The statements included “I would recommend remaining away from there because when I go I’m taking down everything And don’t give a f--- who gets caught in the crossfire. I’ve died for years now and now it’s others people turn. I’m prepared to give my life. So if I don’t get to see you on the outside know I love you always Not all shootings are bad I’m realizing. Some are necessary for change to happen.”
It is alleged that Hernandez’s vehicle was identified on UConn’s campus on July 7.
The complaint also alleges that, on July 18 and 19, 2023, Hernandez made multiple Facebook posts threatening to harm or kill three individuals who reside out of state. In addition, on July 19, in a conversation via text message with one of the victims, Hernandez stated “We’re taking lives if s--- isn’t paid up. It’s been years in planning just taking notes, names and locations. They talked their way into this and it’s almost point game. I know we don’t play in my family. If we have to take lives or buildings we will. So just letting you know so you can be prepared for a media circus one way or another.”
The complaint charges Hernandez with transmitting interstate communications containing a threat to injure, and with interstate stalking. Each charge carries a maximum term of imprisonment of five years.
Hernandez has been detained in state custody on related charges since July 19. He appeared this afternoon Hartford federal court.
U.S. Attorney Avery stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation and the Bristol Police Department. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Boston Man Previously Convicted of Sex Trafficking to Plead Guilty to Witness IntimidationRead the Press Release
BOSTON – A Boston man has been charged and has agreed to plead guilty to attempting to prevent a witness whom he allegedly exposed himself to from testifying against him in a federal proceeding.
Mark Pinnock, 32, had been charged with one count of witness intimidation. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, in 2014, Pinnock was sentenced to eight years in prison for a sex trafficking offense. In 2022, Pinnock was released and under federal supervision while working as an Amazon driver. It is alleged that in July 2022, while Pinnock was on supervised release for his 2014 sex trafficking conviction, a victim reported to local law enforcement that Pinnock allegedly exposed his penis to her while delivering a package to the condominium complex where the victim worked as a custodian. As a result, the U.S. Probation Office sought to revoke Pinnock’s term of supervised release and the Court scheduled a hearing to adjudicate Pinnock’s alleged offense.
It is alleged that one week before the hearing, Pinnock sent a co-conspirator to the condominium complex on his behalf. The co-conspirator allegedly told the victim not to go to Court and stood with his hand in his pocket as if he had something in it. Pinnock also allegedly used an encrypted messaging application to send an anonymous message to the security officer at the complex to “let the cleaning lady know” she would be arrested by immigration officials if she were to go to court. Finally, Pinnock placed three separate phone calls to immigration officials in an attempt to have the victim detained for being unlawfully present in the United States. Pinnock falsely claimed to ICE, among other things, that he had heard the victim was gang-affiliated.
The charge of witness intimidation provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000, restitution, and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England made the announcement today. The Brockton Police provided valuable assistance in the investigation. Assistant U.S. Attorney Mackenzie A. Queenin of the Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.