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Tuesday 6 June 2023
Minneapolis Man Sentenced to 10 Years in Prison for Illegal Possession of a MachinegunRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has been sentenced to 120 months in prison followed by three years of supervised release on convictions for illegal possession of a machinegun and illegal possession of a firearm, announced United States Attorney Andrew M. Luger.
As proven at trial, on October 12, 2021, Marques Dwell Armstrong, Jr., 28, possessed a machinegun, namely, a loaded 9mm-caliber Glock pistol, with a high-capacity magazine, equipped with an attached machinegun conversion device, or “switch,” enabling it to be fired as a fully automatic weapon.
A jury found Armstrong guilty on February 16, 2023, of one count of illegal possession of a machinegun and one count of illegal possession of a firearm. Armstrong was sentenced yesterday in U.S. District Court by Senior Judge Donovan W. Frank to two concurrent terms of 120 months imprisonment. Armstrong also received a consecutive term of seven months imprisonment for a prior supervised-release violation.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.
Assistant U.S. Attorneys Benjamin Bejar and Albania Concepcion prosecuted the case.
Miami Man Sentenced to Federal Prison for Retaliatory Attack on Federal Cooperating WitnessRead the Press Release
MIAMI – Aurelio Luis Perez, a 55-year-old Miami resident, was sentenced to 30 months in federal prison for retaliating against a witness in violation of Title 18, United States Code, Section 1513(b)(2), after pleading guilty on March 24.
Perez assaulted a federal cooperating witness at a local club just several days after the victim was identified as a government witness in a federal criminal trial. Specifically, Perez followed the victim into the restroom and assaulted him while yelling, “This is for snitching” in Spanish. As a result of the assault, the witness suffered a cracked front tooth, inflammation, bruising, and lacerations to his lip. The victim did not know Perez. Perez was a close associate of another individual under investigation at the time of the attack. Perez’s associate has been convicted for his role in distributing over $230 million of adulterated HIV medication.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region, announced the sentence imposed by U.S. District Judge Robert N. Scola Jr.
HHS-OIG Miami and FDIC-OIG investigated the case. Assistant U.S. Attorney Timothy Abraham and Trial Attorney Alexander Thor Pogozelski of the Criminal Division’s Fraud Section prosecuted the case.
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 22-cr-20253.
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Member of Tulalip Tribes sentenced to nearly four years in prison for assault and robberyRead the Press Release
Seattle – A 32-year-old member of the Tulalip Tribes was sentenced today in U.S. District Court in Seattle to 46 months in prison in connection with a carjacking during which he assaulted a driver who had tried to help him, announced U.S. Attorney Nick Brown. Michael J.D. Clark Jones, was arrested in February 2022, following a high-speed chase that left his girlfriend injured, and then he injured another person in the carjacking. In sentencing Jones to 46 months in prison and three years of supervised release, Judge John C. Coughenour said he was conscious of the “dangerous theft of the vehicle” and the concerns of the Tulalip Tribes.
According to records filed in the case, Jones fled from Tulalip Tribal Police at high speeds, ultimately crashing his car and leaving his girlfriend injured. Jones fled into the woods and ultimately came to the home of a woman on the Tulalip Indian Reservation. He told the woman he had been injured in a boating accident and asked her for a ride. The woman drove him a short distance to an intersection where she saw a tribal fish and wildlife truck. The woman started to get out of the car to get help from the fish and wildlife agents. Jones lunged at her and attempted to push her out of the car. The woman grabbed the door handle and steering wheel to keep from falling. Jones put the vehicle in drive and hit the gas pedal. The car accelerated across the road and hit an embankment. Jones hit the woman and tried to force her out of the moving car by punching her hand on the wheel. The door closed on the woman when it hit the embankment, and ultimately, she lost her grip and fell from the car. The force knocked the wind out of her, and she suffered back pain from the assault where Jones punched her in the shoulders, ribs, and chest.
Tribal police found the damaged car and located Jones at a home on the reservation where he was arrested. Jones told law enforcement he fled because he had just picked up 500 fentanyl pills.
In court today, Jones’ attorney said at the time of the crime Jones was “smoking 100 fentanyl pills a day.” Judge Coughenour commented that given that level of drug use, “It is amazing he is still alive.”
In asking for a 52-month sentence Assistant United States Attorney J. Tate London noted that the crime was “part of a pattern of endangering the lives of others,” and “showing little to no concern for the community.”
At a later hearing a Magistrate Judge will determine the amount of restitution Jones will pay to the victims in this case.
The case was investigated by the Tulalip Tribes Police Department with assistance from the FBI.
The case was prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as the Tribal Liaison for the U.S. Attorney’s Office, Western District of Washington.
McCurtain County Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Dalton Elzie Hunter, age 29, of McCurtain, Oklahoma, was sentenced to 37 months in prison for Felon in Possession of a Firearm.
The charges arose from investigations by the Haskell County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On April 13, 2022, Hunter pleaded guilty to one count of Felon in Possession of a Firearm. According to investigators, on October 26, 2021, Haskell County Sheriff’s Office deputies conducted a traffic stop on Hunter. During the stop, deputies discovered Hunter in possession of four firearms and determined he was a convicted felon.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Hunter will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Maple Grove Felon Sentenced to 30 Years in Federal Prison for Fentanyl Trafficking, Possession of a MachinegunRead the Press Release
MINNEAPOLIS – A Maple Grove felon has been sentenced to 360 months in prison for trafficking fentanyl while possessing a machinegun, announced United States Attorney Andrew M. Luger.
According to court documents, on June 4, 2022, officers with the Minneapolis Police Department received a complaint that an individual, later identified as Derrick Maurice Scott, 35, had threatened a man at a convenience store while brandishing a firearm. Two days later, officers located Scott and conducted a traffic stop of a vehicle in which Scott was a passenger. Following a search of the vehicle, officers recovered 355 fentanyl pills and a Glock 41, .45 caliber pistol equipped with an auto-sear or “switch” (a device that makes a firearm function as a fully automatic machinegun) and a high-capacity magazine. Because Scott has multiple prior felony convictions, including aggravated robbery, domestic assault, and terroristic threats, he is prohibited under federal law from possessing firearms or ammunition at any time.
On February 7, 2023, Scott was convicted by a federal jury of possession with intent to distribute fentanyl, carrying a machinegun during and in relation to a drug trafficking crime, possession of a machinegun, and possession of a firearm as a felon. Scott was sentenced today to the mandatory minimum sentence of 30 years in prison, before Senior U.S. District Judge Joan N. Ericksen.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.
Assistant U.S. Attorneys Thomas M. Hollenhorst and Chelsea A. Walcker prosecuted the case.
Man admits he caused thousands in losses to IRSRead the Press Release
LAREDO, Texas – An area man has admitted he filed false tax returns for three years, announced U.S. Attorney Alamdar S. Hamdani.
Oscar Dominic Garcia admitted that between 2016 to 2018, he filed false tax returns in which he under-reported his income.
As part of his plea agreement, Garcia agreed to pay restitution in the amount of $108,113 to the IRS, representing the tax loss for the three years of false tax returns.
“Whether they are self-employed or own a large business, everyone pays taxes to keep services running. When they don’t pay, they violate the trust placed in them by their communities and the American public,” said Special Agent in Charge Ramsey E. Covington of IRS - Criminal Investigation’s (CI) Houston Field Office. “There is no ‘up-side’ to stealing from our nation. All you gain is a felony record and the ire of honest taxpayers.”
A sentencing date has not yet been set. At the time of sentencing, Garcia faces up to three years in federal prison and possible $100,000 maximum fine.
Garcia was permitted to remain on bond pending sentencing.
IRS – CI conducted the investigation. Assistant U.S. Attorney Andrew Swartz prosecuted the case.
Little Eagle Man Sentenced for AssaultRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Little Eagle, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury. The sentencing took place on June 5, 2023.
Raul Tomas Mata, age 22, was sentenced to 10 years in federal prison, followed by three years of supervised release, restitution in the amount of $5,150.31, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Mata was indicted for Assault Resulting in Serious Bodily Injury by a federal grand jury in July of 2022. He pleaded guilty on March 14, 2023.
On April 29, 2022, in Little Eagle, within the Standing Rock Sioux Indian Reservation, Mata fired a rifle from a vehicle towards several houses. One of the bullets Mata fired struck a three-year-old child in the abdomen, causing her serious and life-threatening bodily injury.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Standing Rock Agency, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Corson County Sheriff’s Office. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Mata was immediately remanded to the custody of the U.S. Marshals Service.
Krebs Resident Sentenced for Aggravated Sexual Assault and Sexual Abuse of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Roy Lee Roberts, Jr., age 37, of Krebs, Oklahoma, was sentenced to life imprisonment for two counts of Aggravated Sexual Abuse in Indian Country, and 180 months imprisonment for one count of Sexual Abuse of a Minor in Indian Country. The sentences were ordered to run concurrently.
The charges arose from investigations by the Pittsburg County Sheriff’s Office and the Federal Bureau of Investigation.
On November 16, 2022, Roberts was convicted by a federal jury. During the trial, the United States presented evidence that the defendant sexually abused two minors, one under the age of twelve.
"This office is committed to prosecuting individuals who prey on innocent and vulnerable children,” said United States Attorney Christopher J. Wilson. “Because of the courage of the victims and the dedication of investigators and prosecutors in this case, Roberts is no longer free to victimize others.”
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted these cases because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation and the Eastern District of Oklahoma.
The Honorable David C. Joseph, U.S. District Judge in the United States District Court for the Western District of Louisiana, sitting by designation, presided over the hearings in Muskogee. Roberts will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Edith A. Singer represented the United States.
Kentucky Businessmen Sentenced in Decade Long Scheme to Defraud FCCRead the Press Release
Memphis, TN – Charles A. “Chuck” Jones, 52, and Mark J. Whitaker, 51, both of Murray, Kentucky,
have been convicted of federal crimes and sentenced for a decade long scheme to defraud the Federal
Communications Commission’s (FCC) E-rate program. United States Attorney Kevin Ritz announced the
sentences today.According to United States Attorney Ritz and the information presented in court, the E- rate
program is an FCC program that provides money to needy schools, often in rural areas of America,
for internet access and telecommunications services. The program has specific rules that forbid
service providers to the schools, such as Jones, from paying kickbacks to school officials and
consultants. The E-rate program also requires participating service providers to charge at least a
10% copay.For approximately 10 years, Jones, owner of several Murray, Kentucky businesses, paid kickbacks to
an E-rate consultant working with the Missouri and Tennessee schools involved in this case. During
the conspiracy Jones, his employee Mark J. Whitaker, and the schools’ E-rate consultant, made false
statements and submitted fabricated documents regarding the required copays and the program’s fair
and open bidding process. Jones used the victim schools as a vehicle to fraudulently obtain money
from the E-rate program. The loss to the E-rate program was approximately $6.9 million.Jones pled guilty to conspiracy to commit wire fraud and Whitaker pled guilty to misprision on wire
fraud.United States District Judge Mark S. Norris sentenced Jones to 18 months imprisonment, three years
of supervised release, and ordered him to pay $3.5 million in restitution.
Judge Norris sentenced Whitaker to one year of probation.United States Attorney Kevin Ritz said, "Protection of federal grant programs that provide
needed services and equipment to our schools in West Tennessee is a top priority of thisoffice. When dishonest offenders conspire to defraud these programs for their own selfish gain,
they not only steal tax dollars, but also hurt local schools in the process. We will continue to
work with our federal partners to root out and expose such fraud against the government, to hold
offenders accountable, and to recover ill-gotten gains."Sharon R. Diskin, Acting FCC Inspector General said, "These sentences send a strong message that
individuals who defraud a vital federal subsidy program, such as E-rate, will be held fully
accountable for their actions. I would like to thank our partners in the United States Attorney's
office for the Western District of Tennessee and the FBI for their unrelenting dedication to this
case.”This case was investigated by the Federal Communications Commission - Office of Inspector General
and the Federal Bureau of Investigation.United States Attorney Kevin Ritz thanked former Assistant United States Attorney Murre Foster and
Assistant United States Attorney Tony Arvin who prosecuted this case,
as well as the law enforcement partners who investigated the case.
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Kanawha County Man Sentenced to Prison for Federal Gun Crime and Violating Supervised ReleaseRead the Press Release
CHARLESTON, W.Va. – Terrence Wilson, also known as Terrance Matthew Wilson, 34, of Dunbar, was sentenced today to seven years and six months in prison, to be followed by three years of supervised release, for possessing a stolen firearm and violating his supervised release.
According to court documents and statements made in court, on July 28, 2021, law enforcement officers executed a search warrant at Wilson’s residence and recovered a stolen, loaded Smith & Wesson .380-caliber pistol and a loaded Glock 22 pistol. Wilson admitted to possessing the firearms and further admitted that he had reasonable cause to believe the Smith & Wesson .380-caliber pistol was stolen when he purchased it.
At the time of this offense, Wilson was serving a term of federal supervised release after pleading guilty to distribution of cocaine base, also known as “crack,” in United States District Court for the Southern District of West Virginia on June 9, 2016. Today’s prison sentence includes one year and six months for committing a crime while on supervised release.
Wilson has a long criminal history that also includes prior felony convictions for possession with intent to deliver alprazolam in Kanawha County Circuit Court on May 3, 2013, and interstate travel in aid of drug trafficking in United States District Court for the Southern District of West Virginia on February 5, 2015. The court cited the extensive criminal history and called Wilson a rabid recidivist.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Steve Loew and former Assistant United States Attorney Nick Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:22-cr-3, 2:16-cr-88 and 2:21-cr-257.
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Kanawha County Man Pleads Guilty to Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Andre Leavell Pardue Jr., 35, of Nitro, pleaded guilty today to possession with intent to distribute fentanyl.
According to court documents and statements made in court, on June 16, 2020, law enforcement officers executed a search warrant at Pardue’s residence and found a bag of fentanyl and cash in a pair of pants in Pardue’s bedroom, a Smith & Wesson model M&P 9, 9mm pistol under Pardue’s bed, and a safe containing cash, a second bag of fentanyl and a Smith & Wesson, model M&P 40 Shield, .40-caliber pistol.
Pardue admitted to possessing the fentanyl found in his pants. Pardue further admitted that he intended to both sell and use the fentanyl found in the safe. Pardue also admitted that the cash found in his pants and the safe totaled $3,020 and was proceeds from his fentanyl sales, with a portion of the money intended for his drug supplier.
Pardue is scheduled to be sentenced on September 6, 2023, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT) and the invaluable assistance provided by the West Virginia State Police.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Nowles Heinrich is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-124.
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Justice Department Announces Agreement in Environmental Justice Investigation of Illegal Dumping in the City of HoustonRead the Press Release
The Justice Department announced today that it has secured a settlement agreement in its environmental justice investigation into the City of Houston’s response to illegal dumping in Black and Latino neighborhoods. The agreement builds upon the city’s recently announced One Clean Houston initiative, a comprehensive plan to address pervasive illegal dumping and its negative impacts on the health, safety and quality of life of Houston residents. Today’s agreement memorializes the city’s cooperation with the Justice Department as it implements these new steps to combat illegal dumping and develops improved waste management services for residents across Houston.
“Houston’s illegal dumpsites have contaminated water and soil, attracted vermin and created blight in historically under-resourced neighborhoods across the city,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “I appreciate Mayor Turner’s leadership in addressing these concerns and his resolve in developing One Clean Houston. This agreement will ensure that Houston fully addresses chronic illegal dumpsites, provides access to adequate waste management services and improves quality of life in communities of color. The Justice Department will continue advancing environmental justice and ensuring that people of color across our nation live in safe, clean and healthy communities.”
“No one should have to live next to discarded tires, bags of trash, rotting carcasses, infected soils and contaminated groundwater, all caused by illegal dumping,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “For too long now, Houston’s underserved and low-income communities have had to bear the health burdens of the inaction and misdeeds of others. My hope is that this resolution is an important step in remedying those wrongs.”
In July 2022, the Justice Department launched its investigation after it received a civil rights complaint filed on behalf of Houston residents alleging that the city discriminated against Black and Latino residents of the Trinity/Houston Gardens neighborhood in northeast Houston in violation of Title VI of the Civil Rights Act of 1964. Title VI prohibits recipients of federal funds from discriminating on the basis of race, color or national origin in their federally funded programs and activities.
The department’s ten-month investigation focused on Houston’s efforts to address illegal dumping, a persistent and pervasive problem that occurs more frequently in the city’s Black and Latino neighborhoods. In March 2023, the city announced its One Clean Houston initiative. One Clean Houston focuses on rapid cleanup, better enforcement and prevention and education. In addition to confirming the city’s commitment to One Clean Houston, the agreement establishes a three-year period of federal monitoring; data reporting obligations; enhanced community outreach with impacted neighborhoods, including engagement with residents with limited English proficiency; consideration of additional actions to combat commercial sources of illegal dumping and reduce restrictions for residents seeking to use waste depositories; and a federal civil rights training program for specified city employees.
The Civil Rights Division’s Federal Coordination and Compliance Section conducted this investigation in collaboration with the U.S. Attorney’s Office for the Southern District of Texas.
Addressing discriminatory environmental and health impacts through enforcement of the nation’s civil rights laws is a top priority of the Civil Rights Division. Today’s announcement marks the second environmental justice settlement under federal civil rights statutes. Last month, the division announced the resolution of its environmental justice investigation into the Alabama Department of Health and Lowndes County Health Department in Lowndes County, Alabama. In April 2022, the Justice Department launched its Office on Environmental Justice and its Comprehensive Environmental Justice Enforcement Strategy.
Individuals who believe their civil rights have been violated or have environmental justice concerns can file a complaint with the Civil Rights Division at www.civilrights.justice.gov/report/.
Jury Convicts Southern Oregon Man After Boobytrapped Home Injures Federal OfficerRead the Press Release
MEDFORD, Ore.—On June 2, 2023, a federal jury in Medford found a southern Oregon man guilty of multiple crimes resulting from his boobytrapping of a home that injured an FBI bomb technician.
Gregory Lee Rodvelt, 71, a former resident of Williams, Oregon, was found guilty of assaulting a federal officer and using and discharging a firearm during and in relation to a crime of violence.
According to court documents, on September 7, 2018, bomb technicians from Oregon State Police (OSP) and the FBI went to a property in Williams formerly owned by Rodvelt that he had lost in lawsuit. After Rodvelt learned that a receiver had been appointed to sell the property, he proceeded to boobytrap it.
When the bomb technicians arrived at the property, they observed a minivan blocking the gate. The technicians found steel animal traps affixed to a gate post and under the hood of the minivan. They also located homemade spike strips, which the receiver had previously run over. As the technician neared the residence, they observed a hot tub that had been placed on its side and rigged in a manner that when a gate was opened it would activate a mechanical trigger causing the spa to roll toward the person who had opened the gate.
The technicians further observed that the windows of the residence had been barred from the inside and there were security doors at the front and rear of the residence. The front door also had what appeared to be bullet holes from shots fired inside. In the garage, they found a rat trap modified to accept a shotgun shell. Though the trap was unloaded, it was connected to the main garage door so it would be tripped when the door was opened.
The technicians and two other law enforcement officers gathered near the front of the residence and used an explosive charge to breach the front door. The group carefully entered the residence, looking for traps, and found a wheelchair in the center of the front entryway. When the wheelchair was bumped, it triggered a homemade shotgun device that discharged a .410 shotgun shell that struck the FBI bomb technician below the knee. The group administered first aid to the wounded technician and transported him to a local hospital.
Assaulting a federal officer with a deadly or dangerous weapon is punishable by up to 20 years in federal prison. Using and discharging a firearm during and in relation to a crime of violence is punishable by up to life in federal prison.
Rodvelt will be sentenced at a later date by U.S. District Court Judge Michael J. McShane.
This case was investigated by the FBI with assistance from OSP and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Judith R. Harper and Jeffrey S. Sweet, Assistant U.S. Attorneys for the District of Oregon.
Jury Convicts Federal Correctional Officer for Sexual Abuse of Two Female InmatesRead the Press Release
A federal jury convicted a federal correctional officer of five counts involving sexually abusive conduct against two female victims who were serving prison sentences. U.S. District Judge Yvonne Gonzalez Rogers presided over the trial.
John Bellhouse, 40, formerly of Pleasanton, California, was initially charged with sexual abuse of an inmate on Feb. 17, 2022. A federal grand jury issued a superseding indictment on Sept. 29, 2022, charging Bellhouse with two counts of sexual abuse and three counts of abusive sexual contact. The charges involved conduct that was alleged to have occurred against two female inmates from December 2019 to December 2020. On Monday, a jury convicted Bellhouse of all counts.
“Correctional Officer Bellhouse committed an egregious breach of trust by using the cover of the BOP facility’s Safety Office to sexually abuse individuals in his custody,” said Deputy Attorney General Lisa O. Monaco. “This guilty verdict is yet another warning that any Bureau employee who abuses their authority will be held accountable. The Department of Justice is committed to rooting out sexual assault within the BOP and continuing to prioritize cases involving sexual abuse of individuals in BOP custody.”
“The heinous crimes in this case destroyed the sense of safety and security every human being is entitled to,” said FBI Deputy Director Paul Abbate. “While he was a federal corrections officer, the defendant sexually abused two victims in his care over the course of a year, an unimaginable violation of the most basic human rights. Today’s conviction demonstrates that the FBI remains unyielding in our protection of all people no matter where the crime occurs or who commits it.”
“Bellhouse violated vulnerable women under his custody and care, and a jury held him accountable for these despicable acts. Four other FCI Dublin employees, including the former Warden and Chaplain, have been convicted of sexually abusing inmates. Our investigation of sexual abuse at FCI Dublin remains ongoing, and we will continue to aggressively pursue justice for victims of sexual abuse at the hands of BOP employees,” said Inspector General Michael E. Horowitz.
“As an officer in a federal correctional facility, Bellhouse had an obligation to ensure the safety of all the persons serving their sentences,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “Instead, Bellhouse used the power entrusted to him to serve his own corrupt purposes. The sexual abuse of inmates will not be tolerated, and Bellhouse will now face the consequences for committing his despicable crimes.”
Bellhouse was employed as a correctional officer at the Federal Correctional Institute in Dublin, California (FCI Dublin), an all-female low security federal correctional institution. Trial evidence showed that Bellhouse sexually abused and committed abusive sexual contact against a victim beginning December 2019 through October 2020. The victim was incarcerated and serving a prison sentence at FCI Dublin under Bellhouse’s custodial, supervisory, and disciplinary authority. The trial evidence demonstrated Bellhouse engaged in oral sex with the victim in the prison Safety Warehouse and Safety Office and that Bellhouse touched the victim’s vagina and breasts in the prison Safety Office.
The trial evidence also demonstrated Bellhouse committed abusive sexual contact against a second victim between October and December of 2020. Trial evidence showed that the acts occurred in the Safety Office at the FCI Dublin Camp.
Bellhouse was convicted of two counts of sexual abuse of a ward and three counts of abusive sexual conduct. Each count of sexual abuse carries a maximum term of 15 years in prison. Each count of abusive sexual conduct carries a maximum term of two years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Judge Gonzalez Rogers scheduled Bellhouse’s sentencing hearing for Aug. 30. Bellhouse remains out of custody pending his sentencing.
The DOJ OIG and FBI investigated the case.
Assistant U.S. Attorneys Molly Priedeman and Andrew Paulson for the Northern District of California are prosecuting the case, with the assistance of Madeline Wachs, Sara Slattery, and Leeya Kekona.
Jury Convicts Federal Correctional Officer for Sexual Abuse of Two Female InmatesRead the Press Release
OAKLAND – A federal jury convicted a federal correctional officer of five counts involving sexually abusive conduct against two female victims who were serving prison sentences. United States District Judge Yvonne Gonzalez Rogers presided over the trial.
John Bellhouse, 40, formerly of Pleasanton, California, was initially charged with sexual abuse of an inmate on Feb. 17, 2022. A federal grand jury issued a superseding indictment on Sept. 29, 2022, charging Bellhouse with two counts of sexual abuse and three counts of abusive sexual contact. The charges involved conduct that was alleged to have occurred against two female inmates from December 2019 to December 2020. A jury convicted Bellhouse of all counts.
“Correctional Officer Bellhouse committed an egregious breach of trust by using the cover of the BOP facility’s Safety Office to sexually abuse individuals in his custody,” said Deputy Attorney General Lisa O. Monaco. “This guilty verdict is yet another warning that any Bureau employee who abuses their authority will be held accountable. The Department of Justice is committed to rooting out sexual assault within the BOP and continuing to prioritize cases involving sexual abuse of individuals in BOP custody.”
“As an officer in a federal correctional facility, Bellhouse had an obligation to ensure the safety of all the persons serving their sentences,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “Instead, Bellhouse used the power entrusted to him to serve his own corrupt purposes. The sexual abuse of inmates will not be tolerated, and Bellhouse will now face the consequences for committing his despicable crimes.”
“The heinous crimes in this case destroyed the sense of safety and security every human being is entitled to,” said FBI Deputy Director Paul Abbate. “While he was a federal corrections officer, the defendant sexually abused two victims in his care over the course of a year, an unimaginable violation of the most basic human rights. Today’s conviction demonstrates that the FBI remains unyielding in our protection of all people no matter where the crime occurs or who commits it.”
"Instead of fulfilling his duty as the prison Safety Manager, Bellhouse used his position to abuse the women he was responsible for keeping safe," said FBI Special Agent in Charge Robert Tripp. "The FBI and our partners will continue to pursue allegations of abuse by Dublin FCI correctional officers and hold perpetrators accountable for their crimes."
“Bellhouse violated vulnerable women under his custody and care, and a jury held him accountable for these despicable acts. Four other FCI Dublin employees, including the former Warden and Chaplain, have been convicted of sexually abusing inmates. Our investigation of sexual abuse at FCI Dublin remains ongoing, and we will continue to aggressively pursue justice for victims of sexual abuse at the hands of BOP employees,” said Inspector General Michael E. Horowitz.
Bellhouse was employed as a Correctional Officer at the Federal Correctional Institute in Dublin, Calif. (FCI Dublin), an all-female low security federal correctional institution. Trial evidence showed that Bellhouse sexually abused and committed abusive sexual contact against a victim beginning December 2019 through October 2020. The victim was incarcerated and serving a prison sentence at FCI Dublin under Bellhouse’s custodial, supervisory, and disciplinary authority. The trial evidence demonstrated Bellhouse engaged in oral sex with the victim in the prison Safety Warehouse and Safety Office and that Bellhouse touched the victim’s vagina and breasts in the prison Safety Office.
The trial evidence also demonstrated Bellhouse committed abusive sexual contact against a second victim between October and December of 2020. Trial evidence showed that the acts occurred in the Safety Office at the FCI Dublin Camp.
Bellhouse was convicted of two counts of sexual abuse of a ward, in violation of 18 U.S.C. § 2243(b), and three counts of abusive sexual conduct, in violation of 18 U.S.C. § 2244(a)(4). Each count of sexual abuse carries a maximum term of imprisonment of 15 years. Each count of abusive sexual conduct carries a maximum term of two years imprisonment. A federal district judge will determine any sentence only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
Judge Gonzalez Rogers scheduled Bellhouse’s sentencing hearing for August 30, 2023. Bellhouse remains out of custody pending his sentencing.
The case is being prosecuted by Assistant U.S. Attorneys Molly Priedeman and Andrew Paulson, with the assistance of Madeline Wachs, Sara Slattery, and Leeya Kekona. The prosecution is the result of an investigation by the DOJ OIG and the FBI.
bellhouse_sup_indictment.pdfJoplin Chiropractor Indicted for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., chiropractor has been indicted by a federal grand jury for receiving and distributing child pornography.
Eric Hedman, 39, was charged in a single-count indictment returned under seal by a federal grand jury in Springfield, Mo., on May 24, 2023. That indictment was unsealed and made public today upon Hedman’s arrest and initial court appearance.
Hedman, who operated his own practice at Hedman Chiropractic at the time of the alleged offense, is charged with one count of receiving and distributing child pornography between Jan. 1 and Dec. 12, 2022.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
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."
Johnsonburg woman sentenced to 27 months in jail for embezzlementRead the Press Release
ERIE, Pa. - A resident of Johnsonburg, Pennsylvania, has been sentenced in federal court to 27 months in jail followed by 2 years of supervised release and order to pay restitution in the amount of $765,172.95 on her conviction of wire fraud, Acting United States Attorney Troy Rivetti announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Melissa Bittler, 43, 112 Cushing Avenue, Johnsonburg, Pennsylvania.
According to information presented to the court, over a five-year period Bittler embezzled over $765,000 from the construction company in Johnsonburg where she was employed as the office manager and bookkeeper. Among numerous and consistent personal expenditures with stolen money, Bittler bought and renovated her house and purchased a Honda Pilot with the embezzled company money.
Prior to imposing sentence, Judge Cercone noted the enormity of the amount stolen by Bittler and the significant negative impact on the small business that was victimized.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Federal Bureau of Investigation and the Johnsonburg Borough Police Department for the investigation leading to the successful prosecution of Bittler.
Jeannette Resident Pleads Guilty to Federal Firearms LawsRead the Press Release
PITTSBURGH - A resident of Jeannette, Pennsylvania, pleaded guilty in federal court to a charge of violating federal firearms laws, Acting United States Attorney Troy Rivetti announced today.
Kenyetta Jones, 27, of Jeannette, PA pleaded guilty to one count before United States District Judge W. Scott Hardy.
In connection with the guilty plea, the court was advised that on February 22, 2019, the defendant knowingly possessed a firearm and ammunition as a previously convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
Judge Hardy scheduled sentencing for October 11, 2023 at 11:00 a.m. The law provides for a maximum total sentence of not more than ten (10) years in prison, a fine of $250,000.00, and a term of supervised release of not more than 3 years. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court revoked the defendant’s bond and remanded him to the custody of the United States Marshals Service.
Assistant United States Attorney Carl J. Spindler is prosecuting this case on behalf of the government.
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 Bureau of Alcohol, Tobacco, Firearms, and Explosives, along with the Department of Homeland Security conducted the investigation that led to the prosecution of Kenyetta Jones.
Illinois Woman Sentenced for Stealing $439,000 from BankRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Tuesday sentenced a former bank branch manager who embezzled about $439,000 from her employer to a term of imprisonment of 27 months.
Samantha J. Cherry, 35, from Morrisonville, Illinois was a manager at a UMB Bank branch in St. Louis at the time. Between January 2021 and March 2022, Cherry took cash directly from the vault and moved currency from other cash supplies into her cash drawer totals. Cherry admitted to the theft after being questioned by bank personnel.
Cherry pleaded guilty in March 2023 to one felony count of theft or embezzlement by a bank officer.
The FBI investigated the case. Assistant U.S. Attorney Jennifer Roy is prosecuting the case.
Hostage-Taking Co-Conspirators Will Serve a Combined 32 Years in PrisonRead the Press Release
TUCSON, Ariz. – Olegario Lares-De La Rosa, 30, of Mexico, was sentenced last Friday by United States District Judge Jennifer G. Zipps to 18 years in prison. Lares-De La Rosa was convicted of Conspiracy to Commit Hostage Taking, Conspiracy to Transport Illegal Aliens for Profit, Transportation of Illegal Aliens and Felon in Possession of a Firearm and Ammunition, after a jury trial in February 2023.
Ivan Heriberto Borboa-Ruiz, 28, of Mexico, Lares-De La Rosa’s co-conspirator, was sentenced last Thursday to 14 years in prison after he pleaded guilty to Conspiracy to Commit Hostage Taking and Illegal Alien in Possession of a Firearm and Ammunition.
On April 6, 2022, Homeland Security Investigations received a tip from an individual in New York who reported that his two cousins were being held captive and that their captors had demanded a $16,000 ransom for their release. The two victim cousins were undocumented non-citizens who were part of a group of six individuals abducted in the desert by three armed men after the group crossed illegally into the United States. One of the victims was kicked in the head when he refused to cooperate. The armed captors confiscated all of their cellphones and then transported the six captives to a house where they were held for multiple days in a room where the door was screwed shut each night to prevent escape. The two victim cousins were the final hostages to have the ransom paid.
Borboa-Ruiz made the phone calls arranging for the ransom and hostage exchange. On April 8, 2022, Borboa-Ruiz arrived at the location of the money exchange in Tucson, Arizona and met with two undercover agents. Borboa-Ruiz, who was armed with a loaded 9mm pistol, received and counted the $16,000 in cash twice to confirm the ransom had been paid, made a phone call stating “they were good,” and that the two victims could be released. Lares-De La Rosa was parked a short distance away with the two victims. Shortly after the money exchange, Lares-De La Rosa directed them to get out of the car. The victims walked single file to the vehicle where the ransom had been paid. As the two victims reached the undercover vehicle, Borboa-Ruiz was immediately arrested by law enforcement.
While agents were arresting Borboa-Ruiz, Lares-De La Rosa sped away, leading agents on a high-speed vehicle chase. During the pursuit, Lares-De La Rosa threw a loaded 9mm pistol out of the window and bailed out of the vehicle. He then fled into a residential neighborhood, concealing himself in several private backyards before being arrested.
Homeland Security Investigations conducted the investigation in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marana Police Department. Assistant United States Attorney, Serra M. Tsethlikai, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-0974-TUC-JGZ
RELEASE NUMBER: 2023-087_Lares-De La Rosa# # #
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.Fort Dodge Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to, and distributed, methamphetamine pled guilty June 6, 2023, in federal court in Sioux City.
Phillip Pringle, 53, from Fort Dodge, Iowa, was convicted of conspiracy to distribute methamphetamine, distribution of methamphetamine, and aiding and abetting another in the distribution of methamphetamine.
At the plea hearing, Pringle admitted that between January 2015 and December 2019, he and others distributed several pounds of methamphetamine in the Fort Dodge area. In October 2019 and two occasions in 2020, Pringle was the source of methamphetamine for an individual selling methamphetamine to an undercover officer. On October 19, 2021, Pringle failed to appear for a pre-trial release revocation hearing and an arrest warrant for him was issued. On February 14, 2023, Pringle was arrested by the United States Marshals Service. From about October 19, 2021, to about February 14, 2023, Pringle was a federal fugitive.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Pringle remains in custody of the United States Marshal pending sentencing. Pringle faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least four years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, and Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3022. Follow us on Twitter @USAO_NDIA.
Former U.S. Postal Service Employee Pleads Guilty to Using Her Position to Obtain the Personal Information of Victims as Part of a Conspiracy to Commit Bank Fraud and Wire FraudRead the Press Release
Baltimore, Maryland – Breanna Lee Cartledge, age 28, of Clinton, Maryland, pleaded guilty today to conspiracy to commit bank fraud and wire fraud, in connection with a scheme to defraud financial institutions by creating fake checks using information Cartledge intercepted as a Clerk with the U.S. Postal Service (USPS).
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland and Acting Special Agent in Charge Peter Brown of the U.S. Postal Service – Office of Inspector General (USPS-OIG).
According to her guilty plea, Cartledge utilized her position as a USPS employee to wrongfully access USPS money orders and individual mail to illegally obtain the personal information of victim individuals and businesses, which she and her co-conspirators used without the victims’ authorization.
For example, after a co-conspirator texted Cartledge requesting pictures of checks, Cartledge sent the co-conspirator images of at least nine separate money orders or checks that contained personal identifying information with the intent that the information be used to create fake checks to steal from victim accounts.
As detailed in the plea agreement, on May 28, 2020, Cartledge negotiated a counterfeit check fraudulently drawn for $4,900 from the account of a victim, but the transaction was reversed by the bank. Cartledge admitted that she abused her position as a USPS Clerk to facilitate the commission or concealment of the offense.
Cartledge faces a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud and wire fraud. U.S. District Judge Lydia K. Griggsby has scheduled sentencing for October 19, 2023, at 2:00 p.m.
U.S. Attorney Erek L. Barron commended the USPS-OIG for its work in the investigation. Mr. Barron also thanked Assistant United States Attorneys G. Michael Morgan and Darren Gardner, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Keshena resident sentenced to 14 years in federal prison for voluntary manslaughter and related crimes on the Menominee IndianRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin announced that on June 3, 2023, Duane A. Waupoose, Jr. (Age 29), was sentenced to a total of 14 years in federal prison following his convictions at trial for voluntary manslaughter, assault with a dangerous weapon, and use of a firearm during a crime of violence. The convictions related to an armed assault which resulted in the death of a man on the Menominee Indian Reservation. Waupoose and the victim were enrolled members of the Menominee Indian Tribe of Wisconsin and formerly resided on the reservation. Senior United States District Judge William C. Griesbach also imposed a 60-month term of supervised release to be served upon Waupoose’s release from prison.
The evidence presented at trial showed that around midnight on January 31, 2021, the defendant and others were approached by a group looking to fight another person. A fight broke out in the driveway of a home in the School View area of the Menominee Indian Reservation, and Waupoose received minor injuries after being shot. Waupoose then disarmed the man who shot him and pursued him down the driveway and into the street, striking the man with the shotgun.
The evidence also showed that after the man subsequently fled, Waupoose caught up with him approximately 40 yards down the road and repeatedly struck him on the face and head, causing serious injuries which eventually resulted in his death.
At the sentencing hearing, Judge Griesbach commented, “A life was lost, and it was lost without justification . . . there is no justification for the brutal beating Mr. Waupoose delivered.” Judge Greisbach further noted that the serious nature of the crime, the lasting impact on the victim’s family, and the need to deter others from engaging in similar conduct warranted a lengthy sentence.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. Assistant United States Attorneys Andrew J. Maier and Peter J. Smyczek prosecuted the case in United States District Court.
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Former Erie man pleads guilty to sexual exploitation of children chargesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Troy Rivetti announced today.
Charles Freemont Black, IV, 39, pleaded guilty to two counts before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Black received and possessed computer images and movies depicting minors engaging in sexually explicit conduct.
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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for October 16, 2023, at 1:00 p.m. The law provides for a total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Department of Homeland Security Investigations and the Pennsylvania State Police conducted the investigation that led to the prosecution of Black.
Five Defendants Arrested for Daytime Armed Robberies of Manhattan Jewelry StoresRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of two Complaints charging five defendants with the armed robberies of two Manhattan jewelry stores on the mornings of January 3, 2023, and May 20, 2023, in which approximately $2 million of jewelry was stolen at gunpoint. The five defendants were arrested this morning in New York and New Jersey. FRANK DIPIETRO, VINCENT CERCHIO, VINCENT SPAGNUOLO, and MICHAEL SELLICK were charged by Complaint in connection with the January 3, 2023, robbery of a jewelry store on Madison Avenue in Midtown Manhattan. SAMUEL SORCE was charged by Complaint in connection with the May 20, 2023, robbery of a jewelry store on Elizabeth Street in lower Manhattan. DIPIETRO, CERCHIO, SPAGNUOLO, SELLICK, and SORCE will be presented in Manhattan federal court later today before U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Damian Williams said: “These five defendants allegedly carried out brazen and dangerous daylight robberies of jewelry stores in Manhattan, stealing about $2 million in jewelry at gunpoint. Dressed as construction workers, the defendants allegedly sought to blend into the busy streets around them before pointing guns at the jewelry stores’ employees and carrying out about $2 million in stolen diamonds and other valuable pieces. Thanks to the career prosecutors from my Office and our partners at the NYPD and the FBI, the defendants’ alleged armed robbery spree has been shut down.”
FBI Assistant Director in Charge Michael J. Driscoll said: “The defendants allegedly brazenly robbed Manhattan jewelry stores of approximately $2 million worth of merchandise at gunpoint. Violent robberies, especially those with firearms, will not be tolerated by the FBI and our partners in law enforcement. The arrests today should serve as a warning to anyone willing to engage in armed robberies – you will face the consequences.”
NYPD Commissioner Keechant L. Sewell said: “The swift arrests in this case reaffirm the NYPD’s steadfast commitment, with its law enforcement partners, to hold everyone accused of violent acts accountable. The charges these defendants face reflect a callous disregard for life, and they will now be held accountable. I thank and commend the U.S. Attorney for the Southern District, the New York Field Office of the FBI, and everyone who worked to achieve justice in this case.”
According to the allegations in the Complaints and other publicly filed documents:[1]
On the morning of January 3, 2023, DIPIETRO, CERCHIO, SPAGNUOLO, and SELLICK traveled to Midtown Manhattan together in multiple vehicles. At approximately 10:20 a.m., an employee of a Midtown Manhattan jewelry store was preparing to place pieces of jewelry into the store’s street-level display case when DIPIETRO and SELLICK, dressed in construction vests, entered the building from Madison Avenue. As shown in the image below, DIPIETRO pointed a gun at the employee and said “give it to me,” before SELLICK said, “turn around and get in the closet.”
DIPIETRO and SELLICK fled the store with at least three pieces of high-end diamond jewelry, including an approximately 73-carat necklace (first picture below), an approximately six-carat ring (second picture below), and an approximately 17-carat pair of earrings (third picture below). DIPIETRO, SELLICK, CERCHIO, and SPAGNUOLO then fled Midtown Manhattan. Surveillance footage from the area of the robbery indicates that the defendants, including DIPIETRO and CERCHIO, had prepared for the robbery by “casing” the scene the day before.
On the morning of May 20, 2023, employees of a jewelry store on Elizabeth Street in Manhattan had just opened for business when DIPIETRO and SELLICK — again masked and wearing construction vests — entered the store’s street-level front door. As shown in the image below, SELLICK pointed a gun at the store’s employees and ordered them to the ground, while DIPIETRO gathered jewelry. After DIPIETRO and SELLICK fled the store with the stolen goods, they first got in a getaway car driven by SORCE — who was also dressed like a construction worker — before switching to a second getaway car driven by SPAGNUOLO.
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CERCHIO, 69, of Howard Beach, New York, DIPIETRO, 65, of Red Bank, New Jersey, SELLICK, 67, of Franklin Square, New York, SORCE, 25, of Florham Park, New Jersey, and SPAGNUOLO, 65, of Monmouth Beach, New Jersey, are each charged with one count of Hobbs Act robbery and one count of conspiracy to commit Hobbs Act robbery, each of which carry a maximum sentence of 20 years in prison, and one count of brandishing a firearm during and in connection with a crime of violence, which carries a mandatory minimum sentence of seven years in prison to be imposed in addition to any sentence imposed for the underlying Hobbs Act robbery.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the NYPD. Mr. Williams also thanked the FBI for its assistance in this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Alexandra S. Messiter and Justin Horton are in charge of the prosecution.
The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints set forth herein constitute only allegations, and every fact described should be treated as an allegation.
u.s._v._sorce_complaint.pdf u.s._v._dipietro_et_al_complaint.pdfFive Charged in Theft of California Benefits for Low Income FamiliesRead the Press Release
NEWS RELEASE SUMMARY – June 6, 2023
SAN DIEGO – Five men were arrested and charged in connection with the theft of tens of thousands of dollars in public-assistance benefits from low-income families that need the funds to pay for food, housing and other necessities.
The defendants were arrested by a U.S. Secret Service-led task force as part of a three-day effort to crack down on this devastating and growing fraud in which California benefits are drained from recipients’ accounts almost immediately after the funds are dispersed by the state, typically early in the month. According to federal complaints, the defendants accomplished this by placing illegal devices known as skimmers on ATMs or a retailer's card-swiping machine to copy account information from state-issued Electronic Benefit Transfer (EBT) cards used by the recipients.
Two defendants – Constantin Irimia and Devonte Linell Pipkins - appeared in federal court this morning. Irimia was ordered detained; Pipkins was ordered released on a $35,000 bond secured by real property. The other defendants - Radu Grosu, Gabriel Ionita, and Richard Calin – are scheduled to appear in court Friday for detention hearings.
Ionita and Calin are codefendants; the other defendants are charged individually. All are charged with use of unauthorized access device fraud, which criminalizes the misuse of electronic account information contained on EBT cards issued to public assistance recipients in California and across the country. Three of the men were also found to be in possession of skimming devices, pinhole cameras, and tools for inserting the skimming devices into ATMs.
One victim, a local single mother of four whose EBT account was drained in early June, said she learned that her benefits had been stolen when she went to the store later that day and found that the money she had been counting on to buy diapers and pay rent was gone.
“This kind of crime is extremely hard on people who can least afford to lose their benefits,” said U.S. Attorney Randy Grossman. “We are committed to working with all of our federal, state and local agency partners to identify perpetrators of EBT theft and relentlessly pursue justice for the victims.” Grossman thanked the prosecution team, the U.S. Secret Service and task force members for their excellent work on these cases.
“This type of fraud hurts everyday Americans who rely on government support to feed and care for their families,” said Jason Reynolds, Special Agent in Charge of the U.S. Secret Service’s San Diego Field Office. “The Secret Service is committed to protecting our nation’s financial systems from abuse, and we will continue to work alongside our law enforcement partners to ensure that those involved are held accountable.”
“The San Diego Police Department is a proud member of the USSS So-Cal Cyber Fraud Task Force and has been for over 20 years,” said San Diego Police Chief David Nisleit. “This operation targeted those taking advantage of San Diego residents who rely on public assistance for everyday needs. We are committed to this task force partnership and will continue to support any and all efforts to suppress fraud in any form throughout our city.”
“Shutting down this type of systematic fraud that steals food from the tables of families is a priority for the District Attorney’s Office,” said San Diego County District Attorney Summer Stephan. “Our office continues to be committed to providing assistance to this task force of state and federal partners who are working together to protect the most vulnerable in our community.”
According to charging documents, here’s how the fraud works:
Benefits are distributed via electronic transfers to the state-issued EBT cards. The benefits are automatically distributed to the recipient’s EBT card on a designated day of the month - typically, in California, the first five days. The user can make cash withdrawals and payments using the card. To access their benefits to purchase eligible food items, the recipient swipes the card through a point-of-sale terminal, or inserts it into an ATM, which record the card number, date, time, and amount of the transaction. The recipient then enters his/her unique Personal Identification Number (PIN) into a keypad to complete the transaction.
According to a complaint, the U.S. Secret Service has gathered evidence indicating that members of what appear to be one or more criminal enterprises are stealing California EBT account information by installing skimmers on point-of-sale terminals, often at large-volume retailers like Walmart, in communities with higher concentrations of public benefit recipients. The skimmed data is then often re-encoded onto the magnetic strips of cards that members of the conspiracy use to make unauthorized withdrawals and purchases.
These re-encoded cards are sometimes referred to as “cloned” cards. Cloned cards can be a blank white plastic card, or another debit, credit, or gift card. Cloned cards may have names or numbers embossed on the physical face of the card. A common feature of cloned cards is that the account number encoded on the card’s magnetic strip will not match the number embossed on the card’s face. To facilitate the use of the stolen EBT benefits, members of the scheme will commonly put stickers bearing the account’s PIN on the physical cards, or access devices, that are swiped at a point-of-sale terminal, along with the account balance.
As outlined in the affidavits supporting the five arrests, individuals engaged in stealing EBT benefits have targeted point-of-sale terminals at large-volume stores in National City, Sherman Heights, and El Cajon to skim and thereby steal the EBT account information of local victims.
According to the California Department of Social Services (CalDSS), almost $40 million has been stolen using compromised EBT account information since August 2022. Most of the stolen funds were obtained through unauthorized ATM withdrawals from victims’ CalWORKs benefits. CalWORKS provides cash to eligible families with one or more children in the home. Families that apply and qualify for ongoing CalWORKS assistance receive money each month to help pay for housing, food, and other necessary expenses. CalWORKS, along with CalFresh, is distributed by CalDSS through the California Advantage EBT card.
U.S. Attorney Grossman thanked the many law enforcement partners whose work and dedication made this operation a success: The U.S. Secret Service, San Diego District Attorney’s Office, San Diego Police Department, San Diego Sheriff’s Department, U.S. Department of Agriculture’s Office of Inspector General, California Department of Social Services, Homeland Security Investigations, National City Police Department, El Cajon Police Department, Los Angeles District Attorney’s Office, and the United States Attorney’s Office for the Central District of California.
If you or someone you know has had your EBT benefits stolen, San Diego County’s Department of Health & Human Services Agency requires that the theft be reported within 10 days. More information for San Diego County victims is available at: https://www.sandiegocounty.gov/content/sdc/hhsa/programs/ssp/ebt_fraud.html.
DEFENDANT Case Number Age Hometown
Constantin Irimia 23mj01955-JLB 40 Iasi City, Romania
Devonte Linell Pipkins 23mj01963-JLB 25 Ecorse, Michigan
Gabriel Ionita 23mj01973-WVG 35 Bucharest, Romania
Richard Calin 23mj01973-WVG 23 Bucharest, Romania
Radu Grosu 23mj02000-WVG 35 Rockville, Maryland
SUMMARY OF CHARGES
Use of Unauthorized Access Devices – Title 18, U.S.C., Section 1029(a)(2) (All Defendants)
Maximum penalty: Ten years in prison and $250,000 fine
Possession of Access Device-Making Equipment – Title 18, U.S.C., Section 1029(a)(4) (Irimia, Ionita, Calin)
Maximum penalty: Fifteen years in prison and $250,000 fine
AGENCY
U.S. Secret Service’s Southern California Cyber Fraud Task Force
San Diego District Attorney’s Office
San Diego Police Department
San Diego Sheriff’s Department
U.S. Department of Agriculture’s Office of Inspector General
California Department of Social Services
Homeland Security Investigations
National City Police Department
El Cajon Police Department
Los Angeles District Attorney’s Office
United States Attorney’s Office for the Central District of California
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Felon admits to manufacturing and selling automatic weapons to the Mexican cartelRead the Press Release
LAREDO, Texas – A 37-year-old Laredo resident has pleaded guilty to possession of a machine gun, possession of a firearm by a convicted felon and conspiracy to possess intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Jaime Jesus Esquivel produced and illegally exporting fully automatic firearms to Mexico for the use of drug cartels.
As part of the undercover investigation, law enforcement conducted four controlled purchases of cocaine or multiple AR-type fully automatic rifles. The rifles were ghost guns, a common term for privately made firearms that are absent any manufacture marks of identification.
Esquivel assembled and manufactured these weapons for distribution. He made them from various components of Colt model M4 parts and a 3D printed polymer AR-Type drop-in auto-sear or machine gun conversion device (MGCD). An MGCD is any part designed and intended solely and exclusively for use in converting a weapon into a machine gun.
Law enforcement executed two federal search warrants on locations in Laredo and seized completed and privately manufactured AR-type lower receivers, various firearm parts, firearm manufacturing tools/jigs, 950 rounds of assorted ammunition, a 7.62mm rifle, a 12-gauge shotgun and one privately manufactured short barrel fully automatic rifle that lacked any serial numbers or industry markings as well as meth and cocaine and a 3D printer.
“Selling fully automatic rifles to Mexican cartels so they can carry out their deadly and heartless goals puts the lives of families on both sides the border in serious danger,” said Hamdani. “Esquivel manufactured and assembled fully automatic AR-Type rifles for distribution to Mexico’s cartels, placing his and the cartels’ profits above the lives of his neighbors. As a result, he now faces the potential of a very lengthy term in federal prison.”
U.S. District Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Esquivel faces up to 10 years for possession of a machine gun, a maximum of 20 years for possession of a firearm by a convicted felon as well and 20 years for conspiracy to possess intent to distribute cocaine and total fines of up to $1.5 million.
Esquivel has been and will remain in custody pending sentencing.
The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives and Laredo Police Department conducted the investigation.
Assistant U.S. Attorney Brandon Scott Bowling is prosecuting the case as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Faribault Couple Plead Guilty to Their Roles in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – Mohamed Ali Hussein and Lul Bashir Ali have pleaded guilty to their roles in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced U.S. Attorney Andrew M. Luger.
According to the defendants’ guilty pleas and court documents, Hussein, 53, and Ali, 57, both of Faribault, admitted that between June 2020 and January 2022, they knowingly and willfully conspired with others to participate in a fraudulent scheme to obtain and misappropriate millions of dollars in federal child nutrition program funds that were intended as reimbursements for the cost of serving meals to underprivileged children.
According to the defendants’ guilty pleas and court documents, in April and September 2020, Ali and Hussein enrolled their companies, Lido Restaurant and Somali American Faribault Education (SAFE), respectively, in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. After enrolling, Hussein and Ali began submitting fraudulently inflated invoices for reimbursement in which they claimed to be serving meals to thousands of children a day. In support of these fraudulent claims, they prepared and submitted fake paperwork, including falsely inflated meal counts.
According to the defendants’ guilty pleas and court documents, Lido Restaurant also participated in the program as a vendor. Lido Restaurant had a contract to prepare meals to be served by Hussein’s SAFE site. Ali and Hussein submitted fraudulent claims that sought reimbursement for far more meals and food than Ali’s company actually prepared. As part of the scheme, Hussein also paid more than $100,000 in kickbacks to Feeding Our Future personnel in exchange for the nonprofit’s sponsorship of Lido Restaurant and SAFE.
In total, Hussein’s company claimed to have served more than 1.2 million meals to children between February and November 2021 and obtained approximately $2.1 million in Federal Child Nutrition Program funds. Ali’s company claimed to have served more than 700,000 meals to children between June 2020 and April 2021 and obtained approximately $2.9 million in Federal Child Nutrition Program funds.
Hussein and Ali pleaded guilty today before Judge Nancy E. Brasel to one count each of conspiracy to commit wire fraud. They agreed to pay restitution in the amount of $5,037,649 and to forfeit to the United States real property and a vehicle. Sentencing hearings will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Joseph H. Thompson, Matthew S. Ebert, Harry M. Jacobs, and Chelsea A. Walcker are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
Eleventh Circuit Affirms Convictions and Sentence of Fort Myers Business Owner for COVID-Relief and Mortgage FraudRead the Press Release
Atlanta, Georgia – The United States Court of Appeals for the Eleventh Circuit in Atlanta has affirmed the convictions and sentence of Casey David Crowther (37, Fort Myers) in one of the first federal appeals involving a fraudulent COVID-relief loan (11th Cir. Case No. 21-12255). In March 2021, a federal jury in Fort Myers had found Crowther guilty of bank fraud, making a false statement to a lending institution, and two counts of money laundering in connection with his Paycheck Protection Program loan scheme. (Before trial, Crowther had pleaded guilty to other bank-fraud and false-statement charges related to a separate scheme in which Crowther had created fake bank statements to justify a loan for a nearly $1.3 million waterfront house in St. James City, Florida.) United States District Judge John E. Steele sentenced Crowther to 37 months in prison and three years of supervised release. Crowther appealed his convictions on the PPP charges and his sentence. Among other things, he argued that he was permitted to use PPP funds for any purpose—notwithstanding unambiguous restrictions in the loan documents that he signed—so long as he intended to repay the loan. The Eleventh Circuit rejected Crowther’s arguments and affirmed his convictions and sentence.
Congress created the Paycheck Protection Program to facilitate up to $349 billion in low-interest, potentially forgivable loans for qualified businesses struggling to make payroll or pay operating expenses in the early days of the COVID-19 pandemic. PPP loans were provided by private lenders and guaranteed by the Small Business Association and could be used only for payroll and certain other expenses necessary to maintain business operations during the pandemic (primarily payroll). In April 2020, Crowther obtained a $2.1 million PPP loan by stating that he intended to use the money for payroll, rent, and utilities for his company, Target Roofing and Sheet Metal, Inc. According to the evidence presented at trial, he instructed his bank to deposit the funds into a secret account separate from his company’s main operating account. He quickly used the account for personal use, spending nearly $700,000 on a 40-foot pleasure boat and $55,000 on a horse. He also used PPP funds to pay down personal credit-card debt, a loan owed to an old business partner, and his company’s line of credit (which were not permitted uses). When Crowther’s bank warned him that he was likely to be audited, he attempted to conceal his fraud by falsely “hiring” family members and dozens of fictitious employees to inflate his company’s apparent payroll. He hid the true purpose of certain wire transfers (saying that the boat payment was an “equipment purchase” and the horse payment was for “roofing material”). All the while, taxpayers continued to fund the low-interest loan that had been intended to protect Crowther’s business and employees.
This case was investigated by the United States Secret Service. It was prosecuted in U.S. District Court by Assistant United States Attorneys Trent Reichling and Michael V. Leeman. The appeal was handled by Assistant United States Attorney Sean Siekkinen.
El Departamento de Justicia anuncia un acuerdo en una investigación de justicia medioambiental de vertido ilegal en la Ciudad de HoustonRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio en su investigación de justicia medioambiental de la respuesta de la Ciudad de Houston ante el vertido ilegal en barrios negros y latinos. El acuerdo fortalece la iniciativa municipal One Clean Houston que se anunció hace poco, el cual consiste en un plan integral para abordar el vertido ilegal generalizado y sus efectos negativos en la salud, seguridad y calidad de vida de los residentes de Houston. El acuerdo de hoy conmemora la cooperación de la Ciudad con el Departamento de Justicia en la implementación de estas nuevas medidas para combatir el vertido ilegal y el desarrollo de mejores servicios de gestión de residuos para los residentes por todo Houston.
«Los vertederos ilícitos de Houston han contaminado el agua y la tierra, han atraído parásitos y han creado una lacra en barrios con recursos insuficientes por toda la ciudad», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Aprecio el liderazgo del alcalde Turner en abordar estas preocupaciones y su determinación en lo que se refiere al desarrollo de One Clean Houston. Este acuerdo garantizará que Houston aborde plenamente los vertederos ilegales crónicos, que brinde acceso a servicios adecuados de gestión de residuos y que mejore la calidad de vida en las comunidades de color. El Departamento de Justicia seguirá promoviendo la justicia medioambiental, con el fin de asegurar que las personas de color por todo nuestro país vivan en comunidades seguras, limpias y sanas».
«Nadie debería verse obligado a vivir al lado de llantas botadas, bolsas de basura, cadáveres de animales medio podridos, suelos infectados y aguas freáticas contaminadas», declaró Almadar S. Hamdani, el Fiscal Federal para el Distrito Sur de Texas. «Durante demasiado tiempo, las comunidades marginadas de bajos ingresos de Houston han tenido que soportar las cargas sanitarias de la falta de acción y las fechorías de otros. Espero que esta resolución sea un verdadero paso hacia la corrección de estas injusticias».
En julio del 2022, el Departamento de Justicia lanzó su investigación después de recibir una queja de derechos civiles, presentada en nombre de residentes de Houston que alegan que la Ciudad había discriminado a residentes negros y latinos del barrio de Trinity-Houston Gardens, en el noroeste de Houston, en contra del Título VI de la ley de Derechos Civiles de 1964. El Título VI prohíbe que los beneficiarios de fondos federales discriminen por motivos de raza, color de piel o nacionalidad de origen en sus programas y actividades promovidos con fondos federales.
La investigación del Departamento, que duró diez meses, se enfocó en los esfuerzos de Houston por abordar el vertido ilegal, un problema perenne y generalizado que ocurre con mayor frecuencia en los barrios negros y latinos de la Ciudad. En marzo del 2023, la Ciudad anunció su iniciativa One Clean Houston. One Clean Houston se enfoca en la limpieza rápida, mejor aplicación de la ley y prevención y la educación. Además de confirmar el compromiso de la Ciudad con One Clean Houston, el acuerdo establece un período de tres años de supervisión federal; obligaciones de declaración de datos; mejor proyección comunitaria con los barrios afectados, lo que incluye la interacción con residentes cuyo dominio del inglés es limitado; la consideración de medidas adicionales para combatir las fuentes comerciales del vertido ilegal y reducir las restricciones para residentes que deseen usar depósitos de residuos; y un programa de capacitación en los derechos civiles federales para ciertos empleados municipales.
La Sección Federal de Coordinación y Cumplimiento de la División de Derechos Civiles realizó esta investigación con el apoyo de la Fiscalía Federal para el Distrito Sur de Texas.
Una de las prioridades principales de la División de Derechos Civiles es abordar los impactos discriminatorios en los ámbitos del medioambiente y la salud mediante la aplicación de las leyes nacionales de derechos civiles. El anuncio de hoy representa el segundo acuerdo de justicia medioambiental bajo las leyes de derechos civiles federales. El mes pasado, la División anunció la resolución de su investigación de justicia medioambiental del Departamento de Salud de Alabama y el Departamento de Salud del Condado de Lowndes en el Condado de Lowndes, Alabama. En abril del 2022, el Departamento de Justicia lanzó su Oficina para la Justicia Medioambiental y su Estrategia Integral de Aplicación de la Justicia Medioambiental.
Aquellos individuos que creen que sus derechos civiles han sido vulnerados o que tienen alguna inquietud relacionada con la justicia medioambiental pueden presentar una demanda ante la División de Derechos Civiles en www.civilrights.justice.gov/report/.
Drug Trafficker with Stolen Law Enforcement Gun Sentenced to 10 Years in Federal PrisonRead the Press Release
A Fort Worth drug trafficker with eight firearms – including one stolen from Tarrant County law enforcement – was sentenced to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Juan Carlos Perez, 20, was charged in November 2022. He pleaded guilty in February to conspiracy to possess with intent to distribute controlled substances and was sentenced Friday by U.S. District Judge Reed C. O’Connor.
In plea papers, Mr. Perez admitted he conspired to deal methamphetamine, including methamphetamine-laced counterfeit pills.
According to court documents, law enforcement recovered eight firearms, including two AM-15s and two 9mm Glock pistols, from Mr. Perez’s apartment. One of the Glock pistols had previously been reported stolen from a Tarrant County Detention Officer.
On his phone, law enforcement discovered multiple photos and videos of firearms, narcotics, and large quantities U.S. currency.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Office and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Levi Thomas prosecuted the case.
Dark Web Traffickers of Heroin, Methamphetamine, and Cocaine ProsecutedRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert announces a sentencing and a guilty plea in two cases the United States Attorney’s Office is prosecuting involving drug trafficking on the dark web.
Sentence: United States v. Ian Hoffmann, No. 2:21-cr-017-JAM
Ian Hoffmann, 44, of Bell Canyon, was sentenced today to 10 years in prison for conspiring to distribute methamphetamine, heroin, and cocaine. According to court documents, Hoffmann ran multiple narcotics vendor accounts on various dark web marketplaces, including “CaliCartel” and “BuxomBrunette” on the Dream marketplace, “Playground” on the Silk Road 3.1 marketplace, and “GambinoCrimeFamily” on the Wall Street Market marketplace. Hoffmann was a prolific dark web drug trafficker, completing more than 2,000 drug sales in a six-month period between October 2018 and April 2019 alone. Hoffmann accepted cryptocurrency in exchange for his narcotics and sent the drugs he sold using the U.S. Postal Service.
Federal law enforcement agents surveilled Hoffmann as he mailed dozens of packages suspected to contain narcotics on various dates in 2019. Agents subsequently executed a search warrant at Hoffmann’s residence and seized approximately 5 pounds of heroin, 14 pounds of cocaine, 40 pounds of methamphetamine, two loaded firearms, three boxes of ammunition, a bulletproof vest, more than a quarter of a million dollars in cash, a money-counting machine, several scales, and packaging materials.
Plea Agreement: United States v. Gabriel Alva, No. 2:21-cr-178-JAM
Gabriel Alva, 31, of Winnetka, pleaded guilty today to conspiracy to distribute heroin, cocaine, and methamphetamine; and to possessing a firearm in furtherance of this drug trafficking offense. According to court documents, Alva and his co-conspirators ran multiple drug vendor accounts on various dark web contraband marketplaces, including “Diablow” on the Silk Road 3.1 marketplace, “RaiseAppeals” on the Dream marketplace, and “RaisedByDiablow” on the Nightmare marketplace. Alva’s dark web vendor pages offered crystal methamphetamine, heroin, cocaine, and other narcotics for sale. Alva accepted payment in cryptocurrency for the narcotics and converted approximately $1.3 million worth of various cryptocurrencies into cash. In May 2019, law enforcement agents seized nearly 2 kilograms of heroin, more than 2 kilograms of cocaine, and nearly 24 kilograms of methamphetamine from Alva’s residence. Agents also seized a Remington shotgun and a Smith & Wesson assault rifle, which Alva admitted that he possessed to further his dark web drug trafficking operation.
These cases are the product of investigations by the Northern California Illicit Digital Economy (NCIDE) Task Force, which includes agents from Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the U.S. Postal Service Office of Inspector General, the Internal Revenue Service - Criminal Investigation, and the Drug Enforcement Administration. The NCIDE Task Force is a federal task force focused on targeting all forms of illicit dark web and cryptocurrency activity in the Eastern District of California and beyond. Assistant U.S. Attorney Sam Stefanki is prosecuting both cases.
Alva is scheduled to be sentenced by U.S. District Judge John A. Mendez on Sept. 26, 2023. Alva faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Connecticut Woman Pleads Guilty to Federal Charge Stemming from Kidnapping and Murder of Massachusetts ManRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that SHAMARI SMITH, also known as “Dakota,” 34, of Manchester, pleaded guilty yesterday in New Haven federal court to a charge stemming from the kidnapping and murder of a Massachusetts man in 2020.
According to court documents and statements made in court, on December 24, 2020, Calvin Roberson and another individual kidnapped Francisco Roman, Jr., 28, at gunpoint from a residence in Chicopee, Massachusetts. Roberson and his associate threatened to harm Roman if he did not comply with their orders, handcuffed him, and stole cash, marijuana, and other items from Roman. Roberson and his associate forced Roman into the rear of Roman’s 2010 Acura ZDX, and transported Roman and the other stolen property to Connecticut. Roberson’s associate shot and killed Roman while the car was en route to Hartford. They then drove the car to Shultas Place in Hartford and left it parked on the street.
Roberson and his associate then drove to an apartment that Roberson shared with Smith in Waterbury, and took most of the property stolen during the robbery into the apartment. Smith subsequently learned that property was stolen during a robbery, and that the victim had been murdered. Smith then helped sell or dispose of the stolen property.
Roberson was arrested on February 11, 2021. In an interview with federal law enforcement agents on that date, Smith lied about her role in the sale or disposal of the stolen property.
Smith pleaded guilty to misprision of felony, an offense that carries a maximum term of imprisonment of three years. She is released on a $150,000 bond pending sentencing.
On April 27, 2023, Roberson, also known as “Cutty,” pleaded guilty to one count of conspiracy to commit kidnaping, and one count of causing the death of a person through the use of a firearm. At sentencing, he faces a maximum term of imprisonment of life. He has been detained since his arrest.
As to Roberson’s associate, who is awaiting trial, U.S. Attorney Avery that charges are 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 FBI’s Northern Connecticut Gang Task Force, FBI’s Springfield Gang Task Force, Massachusetts State Police, Hampden County (Mass.) District Attorney’s Office, Hartford Police Department’s Major Crimes Division, Chicopee Police Department and Springfield Police Department, with the assistance of the Waterbury Police Department and the FBI’s Atlanta Field Office.
This case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Angel M. Krull.
U.S. Attorney Avery thanked the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the District of Massachusetts for their assistance in this matter.
Combatting Gun Violence in the Northern District of FloridaRead the Press Release
TALLAHASSEE, FLORIDA – Acts of gun violence are far too frequent in communities throughout the Northern District of Florida. Violating federal firearms laws is a serious crime and offenders face serious consequences. The Department of Justice is committed to investigating and prosecuting individuals who illegally buy, sell, use, or possess firearms.
“The investigation and prosecution of violent crime is central to our mission to protect the public,” said Jason R. Coody, United States Attorney for the Northern District of Florida. “We will continue to utilize every resource available to us to make our streets safe. Our federal, state, and local law enforcement partners work tirelessly to keep us safe and serve a critical role in our efforts to combat violent crime.”
The most effective way to reduce gun violence is through partnerships – federal, state, and local agencies working together to effectively enforce the laws. This strategy has been successful in this area, including such cooperative initiatives as: ALLin LEON, and the Gainesville Gun Violence Initiative, which are making a meaningful difference to reduce gun violence in the Northern District of Florida.
“ALLin LEON” is a comprehensive plan to unify people, agencies, and organizations to work collaboratively to reduce crime in Leon County. It is a partnership which allows all stakeholders to work towards a common goal. “ALLin LEON” is comprised of four components: prevention, re-entry, enforcement, and community involvement. Each component seeks to use reliable data to implement proven strategies. The joint federal, state, and local strike force is a concerted effort to crack down on violent crime under the Leon County Sheriff’s Office ALLin LEON umbrella. This initiative has engaged community volunteers to regularly take at-risk youth to places of worship, activated Neighborhood Crime Watch programs, and conducted other activities to target neighborhoods that are perennial hotspots for violence. The effort also aims to help connect individuals who are reentering the community from incarceration with education, job skills, and substance abuse treatment.
Gainesville Gun Violence Initiative (GVI) is a joint effort of local, state, and federal law enforcement agencies. The Gainesville GVI was established in April 2019, by the United States Attorney’s Office for the Northern District of Florida in an effort to stem the escalating gun violence in Gainesville and the surrounding area. As GVI partners, the State Attorney’s Office for the Eight Judicial Circuit, the Bureau of Alcohol, Tobacco and Firearms, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Gainesville Police Department, the Alachua County Sheriff’s Office, the Alachua Police Department, the University of Florida Police Department, and the Florida Department of Corrections share this commitment to protecting public safety.
Intelligence tools come in many forms. One source is the National Integrated Ballistic Information Network (NIBIN), which digitally analyzes and compares fired shell casings to help investigators link shootings that may have previously seemed unrelated. Administered by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the system is being used at more than 250 sites as a crime gun intelligence tool by law enforcement agencies around the country.
“Extending NIBIN technology to state and local agencies strengthens our collective ability to identify trigger-pullers before they shoot again,” said ATF Tampa Field Division’s Special Agent in Charge Kirk D. Howard. “ATF works hand-in-hand with our partners because no one agency can reduce the level of violence gun crime in North Florida alone.”
To learn more about ATF and its crime gun intelligence programs: https://www.atf.gov/firearms/tools-services-law-enforcement
Gun violence is an acute problem across the United States. According to the Centers for Disease Control and Prevention, the U.S. firearm homicide rate in 2021 was the highest documented since 1993. While the numbers have slightly declined since 2021, they remain high.
In 2021, for the first time ever, firearm-related injuries became the leading cause of death for American children, ages 1-19, according to the New England Journal of Medicine (see also here).
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Collins Sex Offender Convicted at Trial of Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Collins, Mo., man who is a registered sex offender has been convicted of receiving child pornography on his cell phone following a bench trial yesterday.
Billy Puckett, 39, was found guilty of one count of receiving child pornography following a bench trial before U.S. District Judge M. Douglas Harpool on Monday, June 5. Puckett has been detained in federal custody without bail since his arrest on the federal indictment.
Puckett, a registered sex offender, has two prior felony convictions for statutory rape and a prior felony conviction for statutory sodomy.
A Missouri State Highway Patrol trooper initiated a traffic stop near the intersection of Highway 13 and East 316 Road in Bolivar, Mo., on Aug. 28, 2020. The trooper, who learned that Puckett was a registered sex offender, searched Puckett’s vehicle and found a cell phone plugged into a cigarette lighter. When the phone’s screen activated, the trooper noticed Puckett had Facebook and Snapchat applications on the phone, which were not authorized due to Puckett’s status as a registered sex offender. The trooper seized Puckett’s phone, on which he located multiple images of child pornography, and Puckett was arrested.
Investigators conducted a forensic examination of Puckett’s phone and found hundreds of images of child pornography.
Under federal statutes, Puckett is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Missouri State Highway Patrol.
Project Safe Childhood
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."
Cherokee Man Pleads Guilty to Meth ChargesRead the Press Release
A man who conspired to distribute methamphetamine pled guilty on June 6, 2023, in federal court in Sioux City.
Jason Werner, 37, from Cherokee, Iowa, was convicted of conspiracy to distribute methamphetamine.
At the plea hearing, Werner admitted his involvement in a conspiracy that distributed at least 1.5 kilograms of methamphetamine from December 2019 through May 2022. Werner further admitted to assisting at least six others in the conspiracy in obtaining roughly four pounds of methamphetamine and one pound of marijuana from sources in California and Nevada and transporting it via a hidden vehicle compartment to Cherokee, Iowa, for further distribution.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Werner is in the custody of the United States Marshal and will remain in custody pending sentencing. Werner faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Iowa Division of Narcotics Enforcement, United States Postal Inspectors, Homeland Security Investigations, Iowa DCI Laboratory, and Cherokee Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4066. Follow us on Twitter @USAO_NDIA.
Canóvanas Man Indicted for Production of Child Pornography and Exploitation of a MinorRead the Press Release
SAN JUAN, Puerto Rico – W. Stephen Muldrow, United States Attorney for the District of Puerto Rico, announced that Christopher Joel Rabell-Pineiro, a 25-year-old man from Canóvanas was indicted on counts of production of child pornography and child exploitation.
Pursuant to the allegations in the indictment, Rabell-Pineiro used his cell phone and internet instant messaging services from November 2021 through March 2022 to use and coerce a 12-year-old female to engage in sexually explicit conduct for the purpose of producing a visual depiction of that sexual conduct and transmitting the images in violation of Title 18, United States Code, Sections 2422(b) and 2251(a) and (e).
The charges of coercion and enticement under Title 18, United States Code, Section 2422(b), carry a mandatory minimum sentence of 10 years to life. The sentences on a conviction for Production of Visual Depictions of Minors Engaging in Sexually Explicit Conduct under Title 18, United States Code, Sections 2251(a), vary from 15 years to life depending on the enhancements set out in Section 2251(e).
On May 31, 2023, a federal grand jury returned an indictment charging Rabell-Pineiro with counts of production of child pornography and child exploitation and he was arrested on June 6, 2023. These charges resulted from an investigation conducted by Homeland Security Investigations (HSI) San Juan along with the Puerto Rico Crimes Against Children Task Force (PRCACTF) during which materials used for the production and distribution of child pornography were seized from the defendant.
HSI Acting Special Agent in Charge Rebecca Gonzalez-Ramos explained that: “the diligent and extensive investigative work by our special agents led to the identification and prosecution of this defendant who will face the consequences for his actions. He will now have to answer for the crimes for which he is charged.”
“The U.S. Attorney’s Office remains steadfastly committed to prosecuting those who violate federal laws regarding child endangerment,” said U.S. Attorney Muldrow. “The U.S. Attorney’s Office and the Department of Justice, along with our federal, state and local partners, are committed to protecting children from those who would seek to exploit them.”
HSI and the PRCACTF conducted the investigation. Assistant United States Attorney Emelina Agrait, from the Child Exploitation and Immigration Unit, is prosecuting this case.
For more information about HSI’s efforts to protect children from online sexual abuse, visit https://www.ice.gov/topics/iGuardians, and to denounce suspicious activities call 787-729-6969.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty beyond a reasonable doubt.
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CEO of Dozens of Companies and Entities in Florida and New Jersey Admits Role in Massive Scheme to Traffic in Fraudulent and Counterfeit Cisco Networking EquipmentRead the Press Release
TRENTON, N.J. – A Florida resident and dual citizen of the United States and Turkey pleaded guilty to running an extensive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment, Attorney for the United States Vikas Khanna, District of New Jersey, and Assistant Attorney General Kenneth A. Polite Jr. announced today.
Onur Aksoy, aka “Ron Aksoy” and “Dave Durden,” 39, of Miami, Florida, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court on June 5, 2023, to two counts of an indictment charging him with conspiring with others to traffic in counterfeit goods, to commit mail fraud, and to commit wire fraud (Count 1); and mail fraud (Count 4).
According to documents filed in this case and statements made in court:
Aksoy ran at least 19 companies formed in New Jersey and Florida as well as at least 15 Amazon storefronts, at least 10 eBay storefronts, and multiple other entities (collectively, the “Pro Network Entities”) that imported from suppliers in China and Hong Kong tens of thousands of low-quality, modified computer networking devices with counterfeit Cisco labels, stickers, boxes, documentation, and packaging, all bearing counterfeit trademarks registered and owned by Cisco, that made the goods falsely appear to be new, genuine, and high-quality devices manufactured and authorized by Cisco. The devices had an estimated total retail value of hundreds of millions of dollars. Moreover, the Pro Network Entities generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.
The devices the Pro Network Entities imported from China and Hong Kong were typically older, lower-model products – some of which had been sold or discarded – which Chinese counterfeiters then modified to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. The Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components – including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. Finally, to make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters allegedly added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials.
Fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. Often, they would simply fail or otherwise malfunction, causing significant damage to their users’ networks and operations – in some cases, costing users tens of thousands of dollars. Customers of Aksoy’s fraudulent and counterfeit devices included hospitals, schools, government agencies, and the military.
Between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco devices being shipped to the Pro Network Entities from China and Hong Kong. In response to some of these seizures, Aksoy falsely submitted official paperwork to CBP under the alias “Dave Durden,” an identity that he used to communicate with Chinese co-conspirators. To try to avoid CBP scrutiny, Chinese co-conspirators broke the shipments up into smaller parcels and shipped them on different days, and Aksoy used a fake delivery address in Ohio. After CBP seized a shipment of counterfeit Cisco products to Aksoy and the Pro Network Entities and sent a seizure notice, Aksoy often continued to order counterfeit Cisco products from the same supplier.
Between 2014 and 2019, Cisco sent seven letters to Aksoy asking him to cease and desist his trafficking of counterfeit goods. Aksoy responded to at least two of these letters by causing his attorney to provide Cisco with forged documents. In July 2021, agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices with a retail value of over $7 million.
The charge of conspiracy to which Aksoy pleaded guilty carries a maximum penalty of five years in prison. The charge of mail fraud to which Aksoy pleaded guilty carries a maximum penalty of 20 years in prison. Both offenses carry a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. Pursuant to the plea agreement that the court conditionally accepted pending sentencing, Askoy faces a sentence of four to six years and six months in prison and must forfeit $15 million in illicit gains from his scheme and make full restitution to his victims. Sentencing is scheduled for Nov. 6, 2023.
Attorney for the United States Khanna and Assistant Attorney General Polite credited special agents and members of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) Los Angeles, under the direction of Acting Special Agent in Charge Eddy Wang; the U.S. Department of Defense, Defense Criminal Investigative Service, Western Field Office, under the direction of Special Agent in Charge Bryan Denny; the General Services Administration, Office of Inspector General, Southeast and Caribbean Division, under the direction of Special Agent in Charge Floyd Martinez; the U.S. Navy, Naval Criminal Investigative Service, Economic Crimes Field Office, under the direction of Special Agent in Charge Greg Gross; HSI Miami, under the direction of Special Agent in Charge Anthony Salisbury; and HSI Newark, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to today’s guilty plea.
The CBP Electronics Center of Excellence; the CBP Los Angeles National Targeting and Analysis Center; and the CBP Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office, provided valuable assistance.
Anyone who believes they may be a victim of Aksoy or the Pro Network Entities, please visit http://www.justice.gov/largecases or https://www.justice.gov/usao-nj/united-states-v-onur-aksoy-pro-network for more information.
The Pro Network Entities include at least the following:
Pro Network Companies
Approximate Month and Year of Formation
State of Formation
Pro Network LLC
August 2013
New Jersey
Netech Solutions LLC
November 2016
Florida
Target Network Solutions LLC
January 2017
Florida
Easy Network LLC
April 2017
New Jersey
ACE NETUS LLC (a/k/a Ace Network)
April 2017
New Jersey
My Network Dealer LLC
April 2017
New Jersey
1701 Doral LLC
May 2017
New Jersey
Maytech Trading LLC
August 2017
Florida
NFD Trading LLC
September 2017
Florida
Kenet Solutions LLC
September 2017
Florida
Team Tech Global LLC
January 2018
New Jersey
Tenek Trading LLC
January 2018
Florida
The Network Gears LLC
February 2018
Florida
All Networking Solutions LLC (a/k/a All Network)
April 2018
Florida
San Network LLC
October 2018
Florida
Pro Network US Inc.
January 2019
Florida
Jms Tek LLC
August 2019
Florida
Renewed Equipment LLC
August 2021
Florida
Pro Ship US LLC
August 2021
Florida
Pro Network Amazon Storefronts
Approximate Date of Earliest
Known Activity
Albus Trade Hub
January 2014
EasyNetworkUS
March 2014
Get Better Trade
July 2015
Mercadeal
February 2017
Netech Solutions
February 2018
Netkco LLC
September 2014
NFD Trading LLC
January 2018
Palm Network Solutions
June 2017
Renewed Equip
August 2017
Servtaur
August 2019
Smart Network
July 2017
SOS Tech Trade
August 2017
Target-Solutions
September 2020
TeamTech Global
March 2016
TradeOrigin US
August 2015
Pro Network eBay Storefronts
Approximate Date of Earliest
Known Activity
connectwus
March 2014
futuretechneeds
July 2017
getbettertrade
July 2017
getontrade
April 2016
maytechtradingllc
October 2017
netechsolutions
April 2017
netkco
September 2014
nfdtrading
February 2018
smartnetworkusa
January 2014
tenektradingllc
May 2018
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark, Senior Counsel Matthew A. Lamberti of the Department of Justice Computer Crime and Intellectual Property Section in Washington, D.C., and Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.
aksoy.indictment.pdfCEO of Dozens of Companies Pleads Guilty to Massive Scheme to Traffic in Fraudulent and Counterfeit Cisco Networking EquipmentRead the Press Release
A Florida resident and dual citizen of the United States and Turkey pleaded guilty yesterday in the District of New Jersey to running an extensive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment.
According to documents filed in this case and statements made in court, Onur Aksoy, 39, of Miami, ran at least 19 companies formed in New Jersey and Florida, as well as approximately 15 Amazon storefronts and at least 10 eBay storefronts (collectively, the “Pro Network Entities”), that imported from suppliers in China and Hong Kong tens of thousands of low-quality, modified computer networking devices with counterfeit Cisco labels, stickers, boxes, documentation, and packaging, all bearing counterfeit trademarks registered and owned by Cisco, that made the goods falsely appear to be new, genuine, and high-quality devices manufactured and authorized by Cisco. The devices had an estimated total retail value of hundreds of millions of dollars. Moreover, the Pro Network Entities generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.
The devices the Pro Network Entities imported from China and Hong Kong were typically older, lower-model products – some of which had been sold or discarded – which Chinese counterfeiters then modified to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. The Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components – including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. Finally, to make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials.
Fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. Often, they would simply fail or otherwise malfunction, causing significant damage to their users’ networks and operations – in some cases, costing users tens of thousands of dollars. Customers of Aksoy’s fraudulent and counterfeit devices included hospitals, schools, government agencies, and the military.
Between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco devices being shipped to the Pro Network Entities from China and Hong Kong. In response to some of these seizures, Aksoy falsely submitted official paperwork to CBP under the alias “Dave Durden,” an identity that he used to communicate with Chinese co-conspirators. To try to avoid CBP scrutiny, Chinese co-conspirators broke the shipments up into smaller parcels and shipped them on different days, and Aksoy used fake delivery addresses in Ohio. After CBP seized a shipment of counterfeit Cisco products to Aksoy and the Pro Network Entities and sent a seizure notice, Aksoy often continued to order counterfeit Cisco products from the same supplier.
Between 2014 and 2019, Cisco sent seven letters to Aksoy asking him to cease and desist his trafficking of counterfeit goods. Aksoy responded to at least two of these letters by causing his attorney to provide Cisco with forged documents. In July 2021, agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices with a retail value of over $7 million.
Aksoy pleaded guilty to (1) conspiring with others to traffic in counterfeit goods, to commit mail fraud, and to commit wire fraud and (2) mail fraud. He is scheduled to be sentenced on Nov. 6, and under the plea agreement that the court conditionally accepted yesterday pending sentencing, faces a sentence of four to six and a half years in prison. Also pursuant to the plea agreement, Aksoy must forfeit $15 million in illicit gains from his scheme and make full restitution to his victims. The court will determine the final sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Attorney for the United States Vikas Khanna for the District of New Jersey; Acting Special Agent in Charge Eddy Wang of the Homeland Security Investigations (HSI) Los Angeles Field Office; Special Agent in Charge Bryan Denny of the U.S. Department of Defense, Defense Criminal Investigative Service (DCIS) Western Field Office; Special Agent in Charge Floyd Martinez of the General Services Administration Office of Inspector General (GSA-OIG), Southeast and Caribbean Division; Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS), Economic Crimes Field Office; Special Agent in Charge Anthony Salisbury of the HSI Miami Field Office; and Special Agent in Charge Ricky J. Patel of the HSI Newark Field Office made the announcement today.
HSI, DCIS, GSA-OIG, NCIS, and CBP are investigating the case.
Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Andrew M. Trombly and Senior Trial Counsel Barbara Ward for the District of New Jersey are prosecuting the case.
The CBP Electronics Center of Excellence; the CBP Los Angeles National Targeting and Analysis Center; and the CBP Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office provided valuable assistance.
If you believe you are a victim of Aksoy or the Pro Network Entities, please visit www.justice.gov/largecases or www.justice.gov/usao-nj/united-states-v-onur-aksoy-pro-network for more information.
The Pro Network Entities include at least the following:
Pro Network Companies
Approximate Month and Year of Formation
State of Formation
Pro Network LLC
August 2013
New Jersey
Netech Solutions LLC
November 2016
Florida
Target Network Solutions LLC
January 2017
Florida
Easy Network LLC
April 2017
New Jersey
ACE NETUS LLC (aka Ace Network)
April 2017
New Jersey
My Network Dealer LLC
April 2017
New Jersey
1701 Doral LLC
May 2017
New Jersey
Maytech Trading LLC
August 2017
Florida
NFD Trading LLC
September 2017
Florida
Kenet Solutions LLC
September 2017
Florida
Team Tech Global LLC
January 2018
New Jersey
Tenek Trading LLC
January 2018
Florida
The Network Gears LLC
February 2018
Florida
All Networking Solutions LLC (aka All Network)
April 2018
Florida
San Network LLC
October 2018
Florida
Pro Network US Inc.
January 2019
Florida
Jms Tek LLC
August 2019
Florida
Renewed Equipment LLC
August 2021
Florida
Pro Ship US LLC
August 2021
Florida
Pro Network Amazon Storefronts
Approximate Date of Earliest
Known Activity
Albus Trade Hub
January 2014
EasyNetworkUS
March 2014
Get Better Trade
July 2015
Mercadeal
February 2017
Netech Solutions
February 2018
Netkco LLC
September 2014
NFD Trading LLC
January 2018
Palm Network Solutions
June 2017
Renewed Equip
August 2017
Servtaur
August 2019
Smart Network
July 2017
SOS Tech Trade
August 2017
Target-Solutions
September 2020
TeamTech Global
March 2016
TradeOrigin US
August 2015
Pro Network eBay Storefronts
Approximate Date of Earliest
Known Activity
connectwus
March 2014
futuretechneeds
July 2017
getbettertrade
July 2017
getontrade
April 2016
maytechtradingllc
October 2017
netechsolutions
April 2017
netkco
September 2014
nfdtrading
February 2018
smartnetworkusa
January 2014
tenektradingllc
May 2018
Bộ Tư pháp Đưa ra thông báo về Thỏa thuận trong Cuộc điều tra Công lý Môi trường đối với tình trạng Đổ rác Bất hợp pháp tại Thành phố HoustonRead the Press Release
Hôm nay, Bộ Tư pháp thông báo rằng họ đã đạt được thỏa thuận dàn xếp trong cuộc điều tra công lý môi trường đối với phản hồi của Thành phố Houston về vấn đề đổ rác bất hợp pháp ở các khu dân cư của người Da đen và người Latinh. Thỏa thuận này được xây dựng dựa trên sáng kiến One Clean Houston (Khối thống nhất Houston Xanh sạch đẹp) được công bố gần đây của thành phố, đây là một kế hoạch toàn diện nhằm giải quyết tình trạng đổ rác trái phép diễn ra rộng khắp và những tác động tiêu cực của vấn đề này đối với sức khỏe, an sinh và chất lượng cuộc sống của cư dân Houston. Thỏa thuận ngày hôm nay kỷ niệm hoạt động hợp tác của thành phố với Bộ Tư pháp trong việc triển khai các bước hành động mới này để chống lại tình trạng đổ rác bất hợp pháp và phát triển các dịch vụ quản lý chất thải được cải thiện cho cư dân trên khắp Houston.
“Các bãi rác bất hợp pháp ở Houston đã làm ô nhiễm nước và đất, thu hút các loài sâu hại và gây nên sự tàn phá trong các khu dân cư trước đây vốn sở hữu nguồn lực hạn chế trên khắp thành phố”, Trợ lý Tổng chưởng lý thuộc Ban Dân quyền (Civil Rights Division, CRT) của Bộ Tư pháp, Kristen Clarke cho biết. “Tôi trân trọng phương hướng lãnh đạo của Thị trưởng Turner trong việc giải quyết những mối quan ngại này và quyết tâm của ông ấy trong việc phát triển One Clean Houston. Thỏa thuận này sẽ đảm bảo rằng Houston giải quyết triệt để các bãi rác tồn tại lâu năm bất hợp pháp, cung cấp khả năng tiếp cận đến các dịch vụ quản lý chất thải đầy đủ và cải thiện chất lượng cuộc sống trong các cộng đồng người da màu. Bộ Tư pháp sẽ tiếp tục thúc đẩy công lý môi trường và đảm bảo rằng người da màu trên khắp đất nước chúng ta được sống trong các cộng đồng an toàn, sạch sẽ và lành mạnh”.
“Sẽ không có ai phải sống kế bên những chiếc lốp xe bỏ đi, túi rác, xác động vật thối rữa, đất nhiễm khuẩn và nước ngầm bị ô nhiễm bắt nguồn từ tình trạng đổ rác trái phép.”, Luật sư Hoa Kỳ, Alamdar S. Hamdani thuộc Quận phía Nam Texas cho biết. “Đã quá lâu rồi, các cộng đồng có thu nhập thấp và không có đủ nguồn lực của Houston đã phải chịu gánh nặng về sức khỏe do không hành vi khoanh tay đứng nhìn và các hành động sai trái của những người khác. Tôi hy vọng rằng quyết tâm này là một bước tiến quan trọng trong việc khắc phục những việc làm không đúng đắn đó.”
Vào tháng 7 năm 2022, Bộ Tư pháp đã bắt đầu cuộc điều tra sau khi nhận được đơn khiếu nại về hành vi vi phạm dân quyền được đệ trình thay mặt cho các cư dân Houston, cáo buộc rằng thành phố đã có sự phân biệt đối xử đối với cư dân là người Da đen và người Latinh đang sống tại khu dân cư Trinity/Houston Gardens ở phía bắc Houston, vi phạm Title VI (Tiêu đề VI) của Civil Rights Act of 1964 (Đạo luật Dân Quyền năm 1964). Title VI cấm những người tiếp nhận quỹ liên bang phân biệt đối xử dựa trên chủng tộc, màu da hoặc nguồn gốc quốc gia trong các chương trình và hoạt động do liên bang cấp vốn.
Cuộc điều tra kéo dài mười tháng của bộ tập trung vào những nỗ lực giải quyết tình trạng đổ rác trái phép của Houston, một vấn đề dai dẳng và diễn ra rộng khắp, xuất hiện thường xuyên hơn ở các khu dân cư trong thành phố có người Da đen và người Latinh sinh sống. Vào tháng 3 năm 2023, thành phố đã công bố dự án One Clean Houston của mình. One Clean Houston tập trung vào việc vệ sinh nhanh chóng và hoạt động thực thi, phòng ngừa cũng như giáo dục tốt hơn. Ngoài việc xác định cam kết của thành phố đối với One Clean Houston, thỏa thuận này còn thiết lập một giai đoạn kéo dài ba năm trong đó diễn ra hoạt động giám sát của liên bang; thực hiện nghĩa vụ báo cáo dữ liệu; tăng cường khả năng tiếp cận cộng đồng với các khu dân cư bị ảnh hưởng, bao gồm cả việc tương tác với những cư dân có trình độ tiếng Anh hạn chế; cân nhắc các hành động bổ sung để chống lại các nguồn hoạt động thương mại thực hiện hành vi đổ rác trái phép và giảm bớt các hạn chế đối với những cư dân muốn sử dụng các bãi chứa chất thải và một chương trình đào tạo dân quyền cấp liên bang cho nhân viên thành phố được chỉ định.
Federal Coordination and Compliance Section (Bộ phận Tuân thủ và Điều phối Liên Bang) của Ban Dân quyền tiến hành cuộc điều tra này với sự hỗ trợ của Văn phòng Luật sư Hoa Kỳ thuộc Quận phía Nam của Texas.
Giải quyết các tác động phân biệt đối xử về môi trường và sức khỏe thông qua việc thực thi luật dân quyền của quốc gia là ưu tiên hàng đầu của Ban Dân Quyền. Thông báo ngày hôm nay đánh dấu lần giải quyết vấn đề công lý môi trường thứ hai theo các đạo luật dân quyền liên bang. Vào tháng trước, ban này đã đưa ra thông báo về nghị quyết của cuộc điều tra công lý môi trường áp dụng cho Sở Y tế Alabama và Sở Y tế Quận Lowndes ở Quận Lowndes, Alabama. Vào tháng 4 năm 2022, Bộ Tư pháp đã thiết lập Văn phòng Công lý Môi trường và Chiến lược Thực thi Công lý Môi trường Toàn diện.
Những cá nhân tin rằng các họ đã bị vi phạm dân quyền hoặc có những mối quan ngại về công lý môi trường có thể nộp đơn khiếu nại cho Ban Dân quyền tại địa chỉ www.civilrights.justice.gov/report/.
Bronx Man Convicted of 2018 Murder During Which He Shot the Victim’s Five-Year-Old SonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOSHUA RODRIGUEZ, a/k/a “Suave,” was found guilty at trial of the October 23, 2018, murder of Jaquan Millien in connection with a drug trafficking crime. RODRIGUEZ shot and killed Millien in the Butler Houses in the Bronx, New York. During the shooting, RODRIGUEZ shot Millien’s five-year-old son, who was with his father at the time. Thankfully, his son survived. The verdict followed a five-day trial before U.S. District Judge Jed S. Rakoff.
U.S. Attorney Damian Williams said: “Jaquan Millien was bringing his five-year-old son to an after-school program — something parents do in New York City every day — when he was gunned down in his building’s stairwell. His son not only was shot, but he had to see his father die before his eyes. Today, a unanimous jury returned a verdict within hours that found Rodriguez shot and killed Millien. While the verdict cannot bring Millien back, we hope today’s verdict brings some measure of justice for Millien’s family and his community. We remain committed to ridding our neighborhoods of gun violence, and today’s verdict, made possible by the career prosecutors of this Office and our FBI and NYPD law enforcement partners, is an important step in that fight.”
According to the evidence presented in court during the trial:
Between in or about 2012 and in or about 2018, JOSHUA RODRIGUEZ conspired with others to sell marijuana in an apartment building located at 1408 Webster Avenue (the “Apartment Building”). In connection with his narcotics dealing, on or about October 23, 2018, RODRIGUEZ followed Jaquan Millien and his son into the Apartment Building and into a stairwell. RODRIGUEZ then fired multiple shots, killing Jaquan Millien and hitting Millien’s son in the arm.
* * *
RODRIGUEZ, 31, of the Bronx, New York, was found guilty of one count of conspiracy to distribute marijuana, which carries a maximum sentence of 20 years in prison; one count of possessing marijuana with intent to distribute for remuneration, which carries a maximum sentence of five years in prison; and one count of using a firearm to commit murder during a drug trafficking crime, which carries a mandatory minimum of five years in prison and a maximum sentence of life in prison.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of a defendant will be determined by the judge. RODRIGUEZ is scheduled to be sentenced on September 19, 2023.
Mr. Williams thanked the Federal Bureau of Investigation and the New York City Police Department for their outstanding work on the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Mathew Andrews, Courtney Heavey, and Jim Ligtenberg are in charge of the prosecution, with the assistance of Paralegal Specialist William Coleman.
Brambleton Man Sentenced for Investment SchemeRead the Press Release
ALEXANDRIA, Va. – A Brambleton man was sentenced today to two years in prison for an oil, gas, and energy investment fraud scheme.
According to court documents, between January 2014 and August 2019, Ryan Riley, 50, a registered investment advisor, defrauded at least nine investors of approximately $434,100 by making false promises about oil, gas, and energy investments. Riley made false statements about promised returns, supposed partners, and specific wells and leases that had been identified for the projects he was pitching. He told investors that their funds were going to be used for oil, gas, and energy related projects. Over time, Riley told those victims that certain deals fell through, but that the victims’ investments would be converted to new oil, gas, and energy projects. However, despite Riley’s promises, he routinely transferred the funds to his personal accounts where he used the funds for other purposes including paying at least $149,000 towards his mortgage and making risky stock trades, which resulted in substantial losses.
As part of his sentence, Riley was ordered to pay $434,100 in forfeiture, $388,750 in restitution.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs; Special Agent in Charge of the FBI Washington Field Office Criminal Division made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
The U.S. Attorney also commends the Philadelphia Regional Office of the Securities and Exchange Commission (SEC) and the Virginia State Corporation Commission (VSCC), which conducted parallel civil investigations.
Assistant U.S. Attorney Kimberly M. Shartar prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-43.
Battle Creek Couple Sentenced on Fraud ChargesRead the Press Release
Couple charged with COVID-19, SSI, and Food Assistance Fraud; Combined Fraud $216,000
GRAND RAPIDS, MICHIGAN—U.S. Attorney for the Western District of Michigan Mark Totten today announced that Antonio and Keturah Mixon, of Battle Creek, Michigan were sentenced after pleading guilty to COVID-19 Relief, Supplemental Security Income (SSI), and Food Assistance Program fraud charges before U.S. District Judge Jane Beckering. The combined alleged fraud totals approximately $216,000, with Antonio defrauding $36,000 and Keturah defrauding $180,000. The prosecution noted that the guilty pleas represented only a portion of the fraudulent conduct the Mixons committed. Antonio was sentenced to four months in prison and Keturah was sentenced to 18 months and ordered to pay $180,000 in restitution.
“These programs were meant to protect people who had fallen on hard times,” said U.S. Attorney Mark Totten. “My office will continue to aggressively hold accountable scam artists and cheats who steal hard-earned taxpayer dollars.”
Antonio Mixon committed wire fraud by falsely claiming he was entitled to financial assistance under the federal Economic Injury Disaster Loan Program. This program was used to provide loans and grants to small businesses hurt by the economic downturn resulting from the COVID-19 outbreak. Antonio Mixon claimed that he ran Kingdom Warriors Ministry, allegedly a nonprofit organization to help children in Battle Creek. He received $36,000 in grants and loans based upon the number of his purported employees. This claim was false because Kingdom Warriors Ministry never operated, never assisted children, and had no employees. After the money arrived in the Mixons’ bank account, Keturah Mixon immediately withdrew it.
Keturah Mixon falsely obtained subsistence benefits from two federal programs: SSI and the Food Assistance Program. Both programs are meant for people experiencing economic hardships, so anyone applying for assistance must demonstrate that they financially qualify. Keturah Mixon did not qualify because she owned several parcels of real estate, ran a business, and had access to Antonio Mixon’s income, all of which disqualified her. However, she unlawfully concealed this information and received approximately $180,000 in funds.
“Ms. Mixon knowingly concealed from and failed to disclose information to the Social Security Administration (SSA) which would have made her ineligible to receive Supplemental Security Income (SSI). By doing so she abused the SSI program, a needs-based safety net for the most vulnerable among us,” said Gail S. Ennis, Inspector General for SSA. “My office will continue to work with our law enforcement partners to pursue those who defraud SSA. I want to thank the U.S. Attorney’s Office for its support of our investigation and holding Ms. Mixon accountable for her actions.”
The couple was charged with federal fraud offenses in December 2021 and pleaded guilty in January 2023.
This case was investigated by Homeland Security Investigations, Social Security Office of Inspector General, and the Michigan Department of Health and Human Services, Office of Inspector General. Prosecution was handled by Assistant United States Attorney Timothy VerHey.
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Airline Employee Indicted in Alleged Scheme to Fraudulently Create and Sell Travel VouchersRead the Press Release
CHICAGO — A customer service representative for Southwest Airlines fraudulently created and sold travel vouchers worth more than $1.87 million, according to an indictment returned in federal court in Chicago.
While working for Southwest at Midway Airport in Chicago, DAJUAN MARTIN used fictitious customer names to fraudulently generate the vouchers without the airline’s knowledge or approval, the indictment states. Martin then sold the vouchers at below market value to co-defendant NED BROOKS and others in exchange for cash, the indictment states. The vouchers, known as “Southwest Luv Vouchers,” were supposed to be used to compensate customers who had unfavorable travel experiences on the airline.
The indictment was returned Monday. It charges Martin, 36, of Bolingbrook, Ill., with 12 counts of wire fraud, and Brooks, 46, of Chicago, with four counts of wire fraud. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Elly M. Peirson.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Martin et al indictment
Monday 5 June 2023
Wholesale Drug Trafficker and Distributor Sentenced to over 15 Years in PrisonRead the Press Release
BOSTON – The leader of a Brockton-based drug-trafficking organization (DTO) was sentenced on June 1, 2023 for gun and drug offenses committed while on pretrial release for two pending state gun charges.
Kevin Cardoso, 26, of Brockton, was sentenced by U.S. District Court Judge Richard G. Stearns to 188 months in prison and five years of supervised release. On Feb. 1, 2023, Cardoso pleaded guilty to one count of being a felon in possession of a firearm and ammunition; one count of possession with intent to distribute over 500 grams of cocaine, over 400 grams of fentanyl and over 500 grams of methamphetamine; and one count of conspiracy to distribute and possess with intent to distribute over 500 grams of cocaine, over 400 grams of fentanyl and over 500 grams of methamphetamine.
Cardoso oversaw a DTO that distributed wholesale quantities of controlled substances, including cocaine, fentanyl and methamphetamine in and around the Brockton area. Multiple locations where DTO members stored, prepared, or distributed narcotics were located during the investigation. Some of those locations were identified based on the electronic location monitoring data from the ankle bracelet Cardoso was wearing at the time while on pretrial release for two pending state gun charges. Specifically, the locations were determined according to the corresponding date and time of drug-trafficking communications Cardoso sent via his Snapchat. Additionally, a food delivery account that Cardoso and his associates utilized similarly revealed a commonality of locations – later determined to be stash locations – where Cardoso was directing food orders.
During an October 2021 search of a stash location Cardoso operated and managed in Dedham, at least 2,000 grams of cocaine, at least 3,000 grams of fentanyl, at least 5,000 grams of methamphetamine, drug packaging materials, blender parts, multiple respirators, press equipment (including a hydraulic press, press plates and various symbols, logos and emblems for drug-labeling purposes) and approximately $72,000 cash were recovered.
Additionally in October 2021, during a search of Cardoso’s apartment, a firearm and ammunition, at least 20 cellphones, over $26,000, an Audemars Piguet watch and a diamond pendant with the number “39” were recovered. A number of the seized phones contained drug-trafficking communications between Cardoso and others regarding the supply and/or distribution needs of the DTO’s members and its customer base. Digital evidence also showed Cardoso instructing others to obtain legal documents from a lawyer’s office for purposes of smuggling drugs into the jail via attorney mail. At the time of Cardoso’s arrest, over $6,000 was recovered from his person and vehicle, as well as three additional cellphones.
Acting United States Attorney Joshua S. Levy; Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John. E. Mawn Jr., Interim Superintendent of the Massachusetts State Police; Boston Police Commissioner Michael Cox; Brockton Police Chief Brenda Perez; Bridgewater Police Chief Christopher D. Delmonte; East Bridgewater Police Acting Chief Michael Jenkins; Westport Police Chief Keith A. Pelletier; Dedham Police Chief Michael D’Entremont; Plymouth Police Chief Michael E. Botieri; Newton Police Chief John F Carmichael Jr.; Suffolk County Sheriff Steven W. Tompkins; Bristol County Sheriff Paul Heroux; and Plymouth County Sheriff Joseph D. McDonald made the announcement today. Assistant U.S. Attorney Kaitlin R. O’Donnell of Levy’s Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Waynesburg Resident Indicted for Violating Federal Narcotics LawsRead the Press Release
PITTSBURGH, PA – A resident of Waynesburg, PA, has been indicted by a federal grand jury in Pittsburgh on charges of violating various narcotics laws, Acting United States Attorney Troy Rivetti announced today.
The two-count Indictment named Johnathan Fannon, age 32, Waynesburg, PA, as the sole defendant. Fannon was arrested on these federal charges last Thursday.
According to information presented to the Court, on or about November 4, 2021, Fannon attempted to possess with intent to distribute more than 50 grams of methamphetamine, a Schedule II controlled substance, and a quantity of heroin, a Schedule I controlled substance. The Indictment also charged Fannon with possession with intent to distribute more than 40 grams of fentanyl and more than 50 grams of methamphetamine, both Schedule II controlled substances.
The law provides for a mandatory minimum of five years in prison and up to a maximum sentence of forty years in prison, a fine of up to $5,000,000, and a term of supervised release of at least four years. If, however, the defendant has a prior conviction for a serious drug felony or a serious violent felony that is final, then the potential penalties include a term of imprisonment of not less than ten years to a maximum of life, a fine not to exceed $8,000,000, and a term of supervised release of at least eight years. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Waterbury Man Sentenced to 5 Years in Prison for Fentanyl Distribution and Gun Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that, on June 2, 2023, ALEX REYES, also known as “A.J.,” 26, of Waterbury, was sentenced by U.S. District Judge Michael P. Shea in Hartford to an effective term of imprisonment of 60 months, followed by three years of supervised release, for illegally possessing a firearm.
Judge Shea sentenced Reyes to 39 months of imprisonment. Reyes has been detained in state custody since August 2021 and he will not receive credit on his federal sentence for his time served to date.
According to court documents and statements made in court, this matter stems from an ongoing investigation into gangs, drug trafficking and the illegal possession of firearms in Waterbury. The investigation revealed that Reyes and his associate, Julian Goodman, were distributing fentanyl and heroin. On August 26, 2021, Waterbury Police attempted to execute search warrants for Reyes’s residence and person. Reyes, who was sitting in his car as officers approached, fled the scene and struck two police vehicles. He was located later that day using Goodman’s vehicle. After Reyes was apprehended, a search of his person revealed a 9mm handgun and $1,433 in cash, and a search of Goodman’s vehicle revealed more than 80 grams of fentanyl, drug packaging materials, multiple cell phones, and $3,492 in cash. Goodman was apprehended a short distance away.
In 2016, Reyes was convicted in state court of drug and firearm offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On December 13, 2022, Reyes pleaded guilty to possession with intent to distribute fentanyl, and possession of a firearm by a felon.
Reyes has been detained since his arrest.
Goodman has pleaded guilty and awaits sentencing.
This investigation is being conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Connecticut State Police; the Mashantucket Pequot Tribal Police; the Waterbury Police Department; the Wolcott Police Department; and the Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and John T. Pierpont, Jr.
U.S. Attorney Avery thanked the State’s Attorney’s Office for the Judicial District of Waterbury for its close cooperation in investigating and prosecuting this matter.
The prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Justice 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.
Virginia Man Pleads Guilty to Introducing Misbranded Drugs into Interstate CommerceRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces that Jonathan Corbett Cosie (54, Chesterfield, VA) has pleaded guilty to two counts of introducing a misbranded drug into interstate commerce with the intent to defraud or mislead. Cosie faces a maximum penalty of six years in federal prison. His sentencing is set for September 21, 2023. As part of his plea, Cosie agreed to forfeit any unapproved or misbranded drugs.
According to the plea agreement, in Jacksonville, Florida and elsewhere, Cosie operated a business called HCSGRX from approximately 2016 through 2020. HCGRX advertised itself as a distributor of weight loss and bodybuilding supplements. Among other supplements, Cosie sold a number of products containing HCG, which he falsely stated consumers could purchase as a weight loss supplement without having to obtain a valid prescription. Cosie falsely claimed on his website that his company was cooperating with international pharmacies to ship orders out. The investigation revealed that Cosie obtained unapproved prescription drugs containing HCG from foreign manufacturers and other sources, then applied to the vials his own counterfeit labels which contained false and misleading information. Cosie then knowingly and intentionally sold the drugs to consumers without a prescription or the supervision of a licensed medical practitioner. From October 28, 2017, through December 24, 2020, Cosie received approximately $626,202 in proceeds from the distribution of misbranded drugs, and $20,000 when he sold the HCGRX business.
Human Chorionic Gonadotropin (“HCG”) is a hormone produced by the placenta during pregnancy. The U.S. Food and Drug Administration (FDA) has approved several prescription drugs containing HCG for the treatment of female infertility and for other medical conditions. The FDA has not approved any HCG-containing products for weight loss, nor for any purpose without a prescription.
This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations. It is being prosecuted by Assistant United States Attorney David B. Mesrobian. The asset forfeiture is being handled by Assistant United States Attorney Mai Tran.
Utah Fraudster Sentenced to 24 Months After Stealing Thousands of Dollars in PPP Loan MoneyRead the Press Release
Salt Lake City, Utah – A Utah man was sentenced to two years’ imprisonment and ordered to pay more than $450,000 in restitution after he admitted to making false statements in a COVID-era Paycheck Protection Program (PPP) loan, and money laundering.
According to court documents, in May 2020, in the District of Utah and elsewhere, Chris E. McCormick, 64, of Cottonwood Heights, illegally made false representations to Mountain America Credit Union to obtain approximately $266,000 in PPP funds for his small business, Peak Debt Consumption LLC. Mountain America Credit Union is a bank where deposits were then insured by the Federal Deposit Insurance Corporation (FDIC) in connection with PPP loan applications. McCormick falsely stated and caused to be falsely stated that Peak Debt Consumption LLC had 12 employees and had a monthly payroll of $100,000. In McCormick’s plea agreement, he further admitted that he committed money laundering by sending an online wire transfer for $225,000 of fraudulently obtained PPP loan money from his small business Mountain America Credit Union account to his personal TD Ameritrade account. McCormick was ordered by the court to pay $465,995 in restitution and will have 36 months of supervised release following his 24 months prison sentence.
“Mr. McCormick’s actions were illegal and unfair to other honest and hard-working small businesses trying to make ends meet during a challenging time,” said U.S. Attorney, Trina A. Higgins, of the District of Utah. “PPP fraud imposes serious penalties, and we hope cases like these serve as a deterrent to other potential scammers seeking to defraud the U.S. Government.”
“Mr. McCormick’s crimes impacted all taxpaying citizens and small business owners that legitimately needed pandemic-related assistance,” said Acting Special Agent in Charge Cheyvoryea Gibson of the Salt Lake City FBI. “When opportunistic fraudsters seek to profit from federal programs in search of an illegitimate payday, the FBI and our partners stand ready to hold them accountable.”
“Mr. McCormick intentionally took hundreds of thousands of dollars in funds intended to provide relief for businesses impacted by the COVID-19 outbreak,” said IRS Criminal Investigation Special Agent in Charge Albert Childress. “Our agency is committed to bringing justice to those who have exploited the pandemic for personal gain and have stolen from America’s taxpayers.”
The case was investigated jointly by the FBI Salt Lake City Field Office and the Internal Revenue Service-Criminal Investigation (IRS-CI)
Assistant U.S. Attorneys Jennifer E. Gully and Jacob J. Strain of the District of Utah prosecuted the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
United States Attorney Vanessa Waldref Administers the Oath of Office to Three Women Selected to Serve as Federal Prosecutors in Eastern WashingtonRead the Press Release
Spokane and Richland, WA – United States Attorney Vanessa R. Waldref announced today that three women – Laurel J. Holland, Frieda K. Zimmerman, and Allie S. Jensen – were sworn in as federal prosecutors for the United States Attorney’s Office for the Eastern District of Washington. Holland, Zimmerman, and Jensen will represent the United States of America in criminal and civil cases prosecuted in federal court. Holland and Zimmerman will serve as Assistant United States Attorneys (AUSAs), and Jensen will serve as a Special Assistant United States Attorney (SAUSA).
AUSA Holland is the first ever federal prosecutor appointed to serve fulltime in the newly staffed U.S. Attorney’s Office in Richland, Washington. AUSA Zimmerman and SAUSA Jensen will serve out of the main office in Spokane.
After administering the oath of office, U.S. Attorney Vanessa R. Waldref stated, “Today, each of these incredible women affirmed their commitment to execute faithfully their duties to serve and defend the Constitution of the United States. Each brings a wealth of experience, talent, and a strong commitment to public service.” U.S. Attorney Waldref continued,” We know from experience that these three women are exceptional attorneys and prosecutors. They are dedicated to building safer and stronger communities for everyone in Eastern Washington.”
AUSA Holland will serve in the Criminal Division, which handles all manner of federal criminal cases on behalf of the United States. Holland previously served as a Deputy Prosecuting Attorney for Benton County from October 2009 through October 2015 and again from January 2019 through May 2023. In between, Holland served as an Assistant United States Attorney in Yakima, Washington from 2015 through 2018. From April 2022 until now, Holland served as a SAUSA, handling cases in both state and federal court. Throughout her career, Holland has been recognized for her work prosecuting cases involving the exploitation of young children.
AUSA Zimmerman, another member of the Office’s Criminal Division, will handle a variety of cases ranging from narcotics trafficking and illegal firearms possession to fraud and public corruption. Earlier this year, Zimmerman was honored by Attorney General Merrick Garland for her work at the Department of Energy Office of Inspector General. As a SAUSA for DOE, Zimmerman has been recognized as an expert in the areas of white-collar crime, False Claims Act cases, health care fraud, civil rights, and COVID-19 fraud. Prior to her federal service, Zimmerman served as an Assistant Attorney General for the Washington State Office of the Attorney General and worked at a local law firm in Spokane.
SAUSA Jensen will handle white collar fraud for both the Criminal and Civil Divisions of the U.S. Attorney’s Office. She graduated from the Georgetown University Law Center in 2022, and later this year, she will begin a clerkship for the Honorable Zia M. Faruqui, who serves as a United States Magistrate Judge for the United States District Court for the District of Columbia. Prior to law school, Jensen was an elementary school teacher for the District of Columbia Public Schools in Washington D.C.
With today’s announcement, the Tri-Cities now has, for the first time ever, a staffed U.S. Attorney’s Office. U.S. Attorney Waldref stated, “Laurel Holland’s appointment as an Assistant United States Attorney marks a significant milestone for the Eastern District of Washington. When I became the United States Attorney a little more than a year ago, I made a commitment to open a staffed branch office in the Tri-cities, and we have worked tirelessly to make this happen. Today, we officially have fulfilled that promise.” She continued, “Our expansion in the Tri-Cities area is just getting started. We anticipate additional growth in the weeks, months, and years to come.”
U.S. Attorney Vanessa R. Waldref (center) with, from left to right, SAUSA Allie S. Jensen, AUSA Frieda K. Zimmerman, AUSA Laurel J. Holland, and Criminal Chief Alison Gregoire