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25 July 2023
South Carolina Man Charged with Sex Trafficking of Four Victims, including a MinorRead the Press Release
A federal grand jury in Florence, South Carolina, returned an indictment charging a South Carolina man with three counts of sex trafficking by force, fraud or coercion, one count of sex trafficking of a minor, two counts of interstate travel in aid of racketeering and one count of obstructing a sex trafficking investigation.
According to the indictment, between August 2019 and August 2020, Aaron T. Simmons, 26, of Greenville, used force, threats of force and coercion to compel three adult women to engage in commercial sex. The indictment also charges Simmons with sex trafficking of a minor victim.
Simmons will make his initial court appearance before a U.S. Magistrate Judge in the District of South Carolina. It is initially scheduled for July 28. If convicted of sex trafficking by force, fraud, or coercion, Simmons faces a minimum penalty of 15 years in prison and up to life in prison. If convicted of sex trafficking of a minor, Simmons faces a minimum penalty of 10 years in prison and up to life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Adair F. Boroughs for the District of South Carolina and Special Agent in Charge Steven J. Jensen of the FBI Columbia Field Office made the announcement.
The Greenville Police Department and the FBI Greenville Field Office investigated the case.
Assistant U.S. Attorney Carrie Fisher Sherard for the District of South Carolina and Trial Attorney Francisco Zornosa of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
The FBI is asking anyone with information about Aaron Simmons to contact the FBI Columbia Field Office at (803) 551-4200. If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at (888) 373-7888.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IndictmentSioux City, Iowa Man Sentenced to 15 Years for Role in Conspiracy to Possess Stolen FirearmsRead the Press Release
Ian Bigler, age 34, from Sioux City, Iowa, received the prison term after a pleading guilty to one count of conspiracy to possess stolen firearms and one count of possession of a firearm by a felon and drug user.
Evidence in the case revealed that on October 1, 2021, Bigler participated in a home burglary where he and a coconspirator stole 10 guns. The burglary was planned in advance, and Bigler used diversions to insure the home was empty when the burglary was committed. Afterward, Bigler took several steps to conceal the conspiracy. On October 11, 2021, Bigler, fled from police in a 2008 white Dodge Ram pickup truck that contained evidence of the burglary (including a pistol which had been stolen during the burglary). On October 15, 2021, Bigler equipped himself with a bulletproof vest and two firearms (including a Pistol, which had been stolen during the burglary) and a shortened shotgun, secreted himself from law enforcement in a home in North Sioux City, South Dakota, and held another person against his/her will. Additionally, at various times Bigler researched the internet for ways to conceal the conspiracy. The topics included: “how does the FBI track you,” “how to hide,” “how to beat drones,” and “us marshals wanted list.”
Additionally, Bigler was also held accountable for a November 15, 2020, incident where he brandished a firearm in an apparent attempt to rob or extort a local business.
Bigler has a lengthy criminal history. He was previously convicted of several felonies: burglaries, willful injury, and misdemeanor assault while displaying a firearm, amongst other crimes.
Bigler was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 180 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bigler is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by LeMars, Iowa Police Department, Sioux City, Iowa Police Department, and ATF, and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4022.
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Sioux City Man Who Illegally Possessed a Gun Sentenced to More Than 8 Years in Federal PrisonRead the Press Release
A man who called himself “Capone” was sentenced on July 21, 2023, to over 8 years in federal prison.
Randy Hall, age 39, from Sioux City, Iowa, received the prison term after a March 13, 2023, guilty plea to possession of a firearm by a felon and an unlawful drug user.
Evidence in the case showed when Hall was arrested on outstanding state warrants, he was in possession of a loaded 9mm semiautomatic pistol. Hall had secreted the weapon on his person and then tried to hide it in the police cruiser that was being used to transport him to jail. The firearm was discovered.
Hall has a lengthy criminal history including: assault on a police officer, conspiracy to distribute methamphetamine, escape, theft in the 1st degree, operating a motor vehicle while intoxicated, and a pervious felon in possession of a firearm among other crimes.
Hall was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 97 months’ and 22 days imprisonment (which was a sentence of 108 months adjusted for time served). He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Hall is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City, Iowa Police Department and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-04089.
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Sioux City Man Sentenced to More Than 8 Years Federal Prison for Illegal Possession of a Firearm.Read the Press Release
A man who followed a couple into two separate businesses and a Sioux City home, all while confronting them with a gun, was sentenced on July 21, 2023 to more than 8 years in federal prison.
Rico Willis, age 45, from Sioux City, Iowa, received the prison term after a pleading guilty to possession of a firearm by a felon, unlawful drug user and domestic abuse misdemeanant on March 2, 2023.
Evidence in the case showed that on August 29, 2022, Willis followed two individuals into two separate businesses, then to a Sioux City home, all while confronting them with a gun. Outside of the home, Willis struck one the individuals in the head with the gun, causing it to discharge, and knocking the individual to the ground. Willis then fled the scene. A concerned citizen recorded the incident and provided the recording to law enforcement.
Willis has a long criminal history including convictions for: felon in possession of a firearm, unlawful use of a weapon, 2nd degree robbery, harassment, domestic assault, and numerous drug crimes.
Willis was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 106 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Willis is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by Sioux City, Iowa Police Department, and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4092.
Follow us on Twitter @USAO_NDIA.
Seven Charged in International Fraud ConspiracyRead the Press Release
50 Elderly Victims Lost $11 million
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten announced today that seven people were charged in a federal grand jury indictment, unsealed this week, accused of participating in a conspiracy that stole $11 million from 50 victims in West Michigan and around the country. Most of the victims were elderly.
“Elder fraud schemes prey on some of our nation’s most vulnerable citizens,” said U.S. Attorney Totten. “It’s critical to raise awareness of elder fraud to help protect our older loved ones from these types of crimes. My office is committed to fighting all types of elder abuse in our community.”
According to the indictment, victims of the conspiracy received a pop-up or other message on their computers warning that a virus had infected their devices. The messages urged the victims to call a number to get help. When the victims called the number provided, they got a response from someone claiming to work for a tech company, such Microsoft or Apple. In truth, they were scammers located in India, who scared the victims into giving money to the conspiracy with a variety of different ruses.
In one version of the scam, victims were told that their bank accounts had been compromised and they needed to withdraw all of their cash and give it to fake “federal agents” for safekeeping. In another version, victims were told that their computers had been infected by a virus and they needed to pay for technical support. In a third version, victims were told that they had been identified in a criminal investigation and needed to turn over money to clear their names. Regardless of which ruse was used, the end result was the same: victims were convinced to give $11 million to the scammers. Victims did this during in-person meetings with fake “federal agents,” by mailing boxes of cash to addresses provided by the scammers, by wire transfers to bank accounts controlled by the scammers, or through gift cards they purchased at the direction of the scammers.
According to the indictment, the following defendants were the U.S.-based members of the conspiracy who collected fraud proceeds from victims on behalf of the conspiracy:
Name
Age
Location
Pragneshbhai M. Patel
51
Amityville, New York
Everette Jhmal Thibou
30
Tampa, Florida
Jayesh J. Panchal
54
Hicksville, New York
Vijaya C. Shetty
52
Jackson Heights, New York
Jmyla Elaine Sha’taria White
28
Thonotosassa, Florida
Jorrel Tyler Jackson
31
Riverview, Florida
Mckhaela Katelynn McNamara
27
Flint, MI
The indictment alleges that Panchal and McNamara made six trips to meet with a victim in Lake County, Michigan, to collect $398,000 in fraud proceeds from her. The victim had been convinced that her bank accounts had been compromised and that she was giving cash to “federal agents” for safekeeping. It is alleged that Thibou helped arranged the meetings with the Lake County victim. The indictment alleges that others around the country similarly fell victim to the scam.
Earlier this year, two alleged members of the conspiracy located in India were arrested by the Delhi Police Special Cell. FBI’s Legal Attaché New Delhi provided investigative assistance to the Indian authorities.
“Today’s indictment reflects the commitment of the FBI and our partners to protect older Americans from financial scams,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office. “These defendants allegedly defrauded victims by preying on their vulnerabilities. If you believe that you or someone you know may be a victim of elder fraud, submit a tip to the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311).”
According to the FBI’s 2022 Elder Fraud Report, 88,262 people over 60 were victimized in 2022, resulting in the loss of $3.1 billion, an 84% increase from 2021. Tech support and customer service schemes were the most common types of fraud reported.
Elder Fraud Prevention Tips
- Recognize scam attempts and end all communication with the perpetrator.
- Search online for the contact information (name, email, phone number, addresses) and the proposed offer. Other people have likely posted information online about individuals and businesses trying to run scams.
- Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action. Call the police immediately if you feel there is a danger to yourself or a loved one.
- Be cautious of unsolicited phone calls, mailings, and door-to-door services offers.
- Never give or send any personally identifiable information, money, jewelry, gift cards, checks, or wire information to unverified people or businesses.
- Make sure all computer anti-virus and security software and malware protections are up to date. Use reputable anti-virus software and firewalls.
- Disconnect from the internet and shut down your device if you see a pop-up message or locked screen. Pop-ups are regularly used by perpetrators to spread malicious software. Enable pop-up blockers to avoid accidentally clicking on a pop-up.
- Be careful what you download. Never open an email attachment from someone you don't know and be wary of email attachments forwarded to you.
- Take precautions to protect your identity if a criminal gains access to your device or account. Immediately contact your financial institutions to place protections on your accounts and monitor your accounts and personal information for suspicious activity.
This investigation was conducted jointly by FBI Detroit, Grand Rapids Office, Homeland Security Investigations, New Orleans, Louisiana, and the Lake County, Michigan, Sheriff’s Office. Additional investigative assistance was provided by the Delhi Police Special Cell, FBI’s Legal Attaché New Delhi, the U.S. Attorney’s Office for the Eastern District of Louisiana, the New Holland, Pennsylvania, Police Department, the Tennessee Highway Patrol, DEA Chattanooga, FBI New York, and FBI Tampa. The prosecution is being handled by Assistant United States Attorney Clay Stiffler.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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SSNDOB Marketplace Administrator Pleads Guilty to Charges Related to His Operation of A Series of Websites That Sold Millions of Social Security NumbersRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg, along with Special Agent in Charge Kareem Carter for the IRS - Criminal Investigation Washington D.C. Field Office, and Special Agent in Charge David Walker for the FBI - Tampa Division, announces that Vitalii Chychasov (37, Ukraine) has pleaded guilty to conspiracy to commit access device fraud and trafficking in unauthorized access devices relating to his administration of SSNDOB Marketplace, a series of websites that operated for years and were used to sell personal information, including the names, dates of birth, and Social Security numbers belonging to individuals in the United States. The SSNDOB Marketplace has listed the personal information for millions of individuals in the United States, generating more than $19 million in sales revenue. On June 7, 2022, seizure orders were executed against the domain names of the SSNDOB Marketplace, effectively ceasing the website’s operation.
Chychasov faces a maximum penalty of 15 years in federal prison, and as part of his plea agreement, he has agreed to forfeit the internet domains BLACKJOB.BIZ, SSNDOB.CLUB, SSNDOB.VIP, and SSNDOB.WS, which were used to commit the offenses and were part of the series of domains that comprised the “Marketplace.” Chychasov also agreed to a forfeiture money judgment in the amount of $5 million, the proceeds of the access device fraud.
Chychasov was arrested in March 2022 while attempting to enter Hungary; and was extradited to the United States in July 2022. A second SSNDOB Marketplace administrator, Sergey Pugach, was arrested in May 2022.
According to court records, the SSNDOB administrators created advertisements on dark web criminal forums for the Marketplace’s services, provided customer support functions, and regularly monitored the activities of the sites, including monitoring when purchasers deposited money into their accounts. The administrators also employed various techniques to protect their anonymity and to thwart detection of their activities, including strategically maintaining servers in various countries, and requiring buyers to use digital payment methods.
Stolen Social Security numbers can be used to commit a variety of frauds, including United States tax fraud, unemployment insurance fraud, loan fraud, credit card fraud, and the like. Investigators determined that a single buyer from the site used stolen personal identifying information that he purchased to steal and launder nearly $10 million.
The U.S. investigation was led by the IRS - Criminal Investigation Cyber Crimes Unit and the FBI – Tampa Division, with assistance from the IRS-Criminal Investigation’s Tampa Field Office. Substantial assistance was also provided by the Department of Justice’s Office of International Affairs, the FBI’s Legal Attaché Offices responsible for Latvia and Cyprus, the Latvian Police, and the Cypriot authorities.
The case is being prosecuted by Assistant United States Attorney Rachel Jones and the asset forfeiture is being handled by Assistant United States Attorney Suzanne Nebesky.
Roofing Company Principal Arrested for Failing to Protect an Employee Who Fell to His DeathRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Jonathan Mellone, the Special Agent in Charge of the Northeast Region of the U.S. Department of Labor, Office of the Inspector General (“DOL-OIG”), announced today that JOSE LEMA, a/k/a “Jose Lema Mizhirumbay,” the founder and principal of ALJ Home Improvement, Inc., a New York roofing company, was charged with willfully violating Occupational Safety and Health Administration (“OSHA”) regulations, resulting in the death of an employee (“Victim-1”) in New Square, New York, on or about February 8, 2022. The Complaint charges that LEMA failed to ensure employees wore fall protection systems, and Victim-1 fell off the roof of a building under construction and died. LEMA was arrested this morning at his home in Nanuet, New York, and will be presented before U.S. Magistrate Judge Victoria Reznik in White Plains federal court later today.
U.S. Attorney Damian Williams said: “As alleged, Lema endangered the safety of his workers by disregarding regulations and failing to ensure his employees used fall protection systems. This conduct led to the death of a roof worker on a construction site. Today’s charge should serve as a reminder to small businesses that failure to comply with safety regulations can lead to unnecessary and preventable tragedy.”
DOL-OIG Special Agent in Charge Jonathan Mellone said: “An important part of the mission of the Office of Inspector General is to investigate allegations of criminal misconduct related to U.S. Department of Labor programs. We will continue to work with our law enforcement partners and DOL’s Occupational Safety and Health Administration to hold those who jeopardize workers’ safety accountable.”
As alleged in the Complaint:[1]
On the morning of February 8, 2022, LEMA sent Victim-1 and three other ALJ employees to install a roof on a three-story multi-family apartment building under construction in New Square, New York (the “Worksite”). Victim-1 and the other ALJ employees ascended a ladder to the roof, but within 20 to 30 minutes of arriving at the Worksite, Victim-1 fell off the roof and landed on the ground approximately 30 feet below. He died from his injuries. Victim-1 was wearing a safety harness, but there was no lanyard, rope, or any other attachment connected to the D-ring on the back of the harness that would have connected him to the roof. Nor were there anchors on the roof to attach a rope had there been one connected to the harness. OSHA cited ALJ for failing to ensure its employees were using fall protection systems.
Victim-1’s deadly fall was not the first time an employee of LEMA and ALJ fell to his death at one of ALJ’s worksites or that ALJ employees were exposed to fall hazards. OSHA investigated ALJ six times before Victim-1’s death and once after. OSHA issued citations after each incident. The first time, on or about February 27, 2019, an ALJ employee slipped off the roof of a newly constructed three-story home in Kiamesha Lake, New York (“Victim-2”), fell 35 feet to the ground, and subsequently died from his injuries. OSHA determined that Victim-2 was not wearing a safety harness and issued citations to ALJ for, among other things, failure to ensure employees wear fall protection systems. ALJ settled and agreed to pay a penalty.
There were five more incidents on five different worksites in New York and New Jersey after Victim-2’s death in February 2019 and before Victim-1’s death in February 2022 in which ALJ employees were exposed to fall hazards and OSHA cited ALJ for failing to ensure its employees were using fall protection systems. In each case, ALJ settled and agreed to pay a penalty.
Even after Victim-1’s death, LEMA continued to violate OSHA standards and failed to protect his employees. On or about August 4, 2022, ALJ employees were working on an 18-foot roof in Ho Ho Kus, New Jersey, without any apparent fall protection. They were wearing harnesses that were not secured to the roof. OSHA issued more citations, including willful failure to ensure employees wear fall protection systems.
In all, between in or about 2019 and in or about 2023, OSHA performed eight investigations of ALJ worksites that resulted in the issuance of 24 willful citations, 16 serious citations, and over $2.3 million in penalties. Each time OSHA investigated, Compliance Safety and Health Officials met with LEMA and made him aware of his rights and obligations to his employees. At an OSHA administrative deposition, LEMA admitted that prior to Victim-1’s fall, he knew that employees on a roof higher than six feet high needed to be protected by some form of fall protection. But despite that knowledge, citations, and fines from six previous investigations, LEMA failed to follow OSHA standards and protect Victim-1 and his other employees.
* * *
LEMA, 40, of Nanuet, New York, is charged with one count of knowingly and willfully violating OSHA residential construction fall protection standards by failing to protect his employees from fall hazards and causing injuries that resulted in an employee’s death, which carries a maximum sentence of six months in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of OSHA, DOL-OIG, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Margery Feinzig is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Lema ComplaintOuray Lodge and Hot Springs Agrees to Improve Access for Individuals with Physical DisabilitiesRead the Press Release
DENVER—The U.S. Attorney’s Office for the District of Colorado announced that it has resolved a complaint under the Americans with Disabilities Act (ADA) against Twin Peaks Lodge & Hot Springs, a hotel located in Ouray, Colorado, related to its rooms and other facilities that are inaccessible to individuals with physical disabilities.
The U.S. Attorney’s Office received a complaint that Twin Peaks failed to make its facilities readily accessible to an individual with a terminal illness who had trouble walking and navigating stairs. Twin Peaks, which has only one mobility-accessible guest room on the first floor of the hotel, placed the complainant in a second-floor room that does not have an elevator. As a result, the complainant was very limited in his ability to enter and leave his hotel room during his stay, and the complainant’s family had to make significant adjustments to their plans because of the inaccessible accommodations.
The ADA requires that places of public accommodation, such as hotels, make their facilities readily accessible to and usable by individuals with physical disabilities.
To resolve the complaint, Twin Peaks agreed to pay the complainant $3,000 and make changes to its existing rooms, hot springs pools, dining and common areas, and other facilities to make them accessible to individuals with disabilities. In addition, the U.S. Attorney’s Office will monitor future renovations and the planned construction of a new hotel building to ensure that Twin Peaks complies with the ADA’s design and construction standards.
“The U.S. Attorney’s Office is committed to ensuring that hotel guests who have disabilities can obtain the accommodations that they need, and that they can take advantage of all of the amenities of our Colorado mountain towns,” said U.S. Attorney Cole Finegan. “The U.S. Attorney’s Office’s commitment to ensuring that individuals with disabilities have equal access improves everyone’s enjoyment of all our beautiful state has to offer.”
Additional information about the U.S. Attorney’s Office’s civil rights enforcement program can be found at https://www.justice.gov/usao-co/civil-rights-enforcement.
This case was handled by Assistant U.S. Attorney Zeyen Wu.
Orange County Businessman Pleads Guilty to Fraudulently Obtaining over $5.2 Million by Bogus Promises of His Company’s Purported IPORead the Press Release
LOS ANGELES – The owner of an Orange County real estate finance business has pleaded guilty to fraudulently obtaining more than $5.2 million by making false promises to an investor that shares of his private company were about to be publicly traded on the Nasdaq stock exchange, the Justice Department announced today.
Jacques Poujade, 63, of Irvine, pleaded guilty late Monday afternoon to one count of securities fraud.
According to his plea agreement, Poujade is the owner and chief financial officer of Tri-Emerald Financial Group, a Lake Forest-based realty services company that operated as a residential mortgage lender. Tri-Emerald funded loans as a mortgage banker, with the intent to hold the funded loans for immediate resale to financial institutions that purchased the loans for investments. Neither Tri-Emerald nor its securities were ever registered with the United States Securities and Exchange Commission.
From February 2015 to May 2020, Poujade sold unregistered securities to a victim investor by telling the victim a series of lies, including about the timing and likelihood of Tri-Emerald’s initial public offering (IPO) and the resulting share price. The victim purchased shares in Tri-Emerald at $10 per share, after Poujade represented they were “securities” under federal law and would exceed the price of $100 per share once the company went public.
Poujade falsely promised the victim that Tri-Emerald was a pre-IPO opportunity that would provide high returns when the company soon went public on Nasdaq. In fact, Tri-Emerald had not completed the necessary steps to undertake an IPO, including filling out the required SEC paperwork or formally engaging the investment banks Poujade falsely told the victim he had engaged as underwriters.
Poujade admitted that he further lied to the victim by saying one investment bank “was super excited about moving forward” and estimated that Tri-Emerald would “be a billion dollar company in under 16 months,” according to the plea agreement.
He also said Tri-Emerald was using the victim’s investment to cover IPO costs when, in fact, Poujade used a substantial portion of the funds for general Tri-Emerald operating expenses and to make lulling payments and litigation settlement payments to previous Tri-Emerald investors. Poujade also used a portion of the funds for personal expenditures in lieu of taking a salary.
In total, Poujade fraudulently obtained approximately $5,255,600 from the victim.
In his plea agreement, Poujade further admitted to defrauding another victim and that victim’s investment group in July 2016 by convincing them to purchase 30-day promissory notes issued by LendPlus Holdings, another one of Poujade’s companies. These notes purportedly were to be used to increase Tri-Emerald’s warehouse line of credit, which would allow Tri-Emerald to fund a larger volume of mortgages.
At the end of the term of the 30-day promissory notes, instead of repaying victim investors, Poujade continuously rolled victim investors’ funds over into the next month. On numerous occasions, Poujade lulled the victims by falsely claiming their money was safe in a reserve account and LendPlus was using their funds to improve Tri-Emerald’s loan production and line of credit.
In reality, Poujade used a substantial portion of these funds to make lulling payments to previous Tri-Emerald investors, to pay Tri-Emerald’s operating expenses, and for his own personal use, including paying rent on his residence.
Poujade admitted to defrauding these investors out of approximately $915,000.
United States District Judge Mark C. Scarsi scheduled an October 30 sentencing hearing, at which time Poujade will face a statutory maximum sentence of 20 years in federal prison.
The FBI and the United States Department of Housing and Urban Development Office of Inspector General investigated this matter.
Special Assistant United States Attorney Ryan G. Adams of the Santa Ana Branch Office is prosecuting this case.
Oklahoma Man Sentenced to Statutory Maximum of 10 Years for Racially Motivated Hate Crime Against Black ManRead the Press Release
OKLAHOMA CITY – An Oklahoma man was sentenced to 120 months in prison, followed by three years of supervised release, and ordered to pay $68,186.64 of a total amount of $113,644.40 in restitution to the Black victim of the offense for his role in a racially-motivated attack in Shawnee, Oklahoma.
On January 18, 2022, a federal grand jury in the Western District of Oklahoma returned a two-count indictment charging Devan Wayne Johnson, 28, of Oklahoma City, and co-defendant Brandon Wayne Killian, who are white, with physically assaulting a Black man - as well as the Black man’s white friend - in the parking lot of the Brickhouse Saloon in Shawnee. The indictment alleges that the assault occurred because of the Black man’s race and color. Johnson pleaded guilty to one count of committing a hate crime in September 2022.
“This defendant is being held accountable for brutally assaulting a Black man because of his race,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to enforce our federal civil rights laws to prosecute those who commit violent hate crimes in our country.”
“Heinous, hate-fueled crimes such as this have no place in our state or country,” said United States Attorney Robert J. Troester for the Western District of Oklahoma. “This is the first case sentenced in the Western District of Oklahoma under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. The judge’s decision to give the maximum penalty in this case sends a strong message, and we will continue to aggressively combat all hate crimes and seek justice for those victimized by hate.”
“Hate crimes have a devastating impact on not only the victims and their families, but on entire communities as well,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “Today’s sentencing highlights the FBI’s work to ensure everyone feels safe in their own community, without fear of being harmed because of the color of their skin. There is absolutely no place for race-based violence in the state of Oklahoma.”
Assistant Attorney General Clarke, U.S. Attorney Troester, and Special Agent in Charge Gray made the announcement.
Killian will be sentenced on August 14.
The FBI Oklahoma City Field Office investigated the case. Assistant U.S. Attorney Julia E. Barry for the Western District Oklahoma and former Trial Attorney Avner Shapiro of the Civil Rights Division’s Criminal Section prosecuted the case.
Reference is made to public filings for more information.
Oklahoma Man Sentenced for Racially Motivated Hate Crime Against Black ManRead the Press Release
An Oklahoma man was sentenced to 120 months in prison followed by three years of supervised release and payment of $68,186.64 in restitution for a racially-motivated attack on a Black victim in Shawnee, Oklahoma.
On Jan. 18, 2022, a federal grand jury in the Western District of Oklahoma returned a two-count indictment charging Devan Wayne Johnson, 28, of Oklahoma City, and co-defendant Brandon Wayne Killian, who are white, with physically assaulting a Black man – as well as the Black man’s white friend – in the parking lot of the Brickhouse Saloon in Shawnee. The indictment alleges that the assault occurred because of the Black man’s race and color. Johnson pleaded guilty to one count of committing a hate crime in September 2022.
“This defendant is being held accountable for brutally assaulting a Black man because of his race,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to enforce our federal civil rights laws to prosecute those who commit violent hate crimes in our country.
“Heinous, hate-fueled crimes such as these have no place in our state or country,” said U.S. Attorney Robert Troester for the Western District of Oklahoma. “This is the first case sentenced in the Western District of Oklahoma under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and we hope today’s proceedings send a strong message. We will continue to aggressively combat all hate crimes and seek justice for those victimized by hate.”
“Hate crimes have a devastating impact on not only the victims and their families, but on entire communities as well,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. “Today’s sentencing highlights the FBI’s work to ensure everyone feels safe in their own community, without fear of being harmed because of the color of their skin. There is absolutely no place for race-based violence in the state of Oklahoma.”
Assistant Attorney General Clarke, U.S. Attorney Troester and Special Agent in Charge Gray made the announcement.
Killian will be sentenced on Aug. 14.
The FBI Oklahoma City Field Office investigated the case.
Assistant U.S. Attorney Julia Barry for the Western District Oklahoma and former Trial Attorney Avner Shapiro of the Civil Rights Division’s Criminal Section prosecuted the case.
Nine-time felon sentenced to more than 17 years in prison for illegal possession of firearm, drugsRead the Press Release
CINCINNATI – A Cincinnati man with nine prior felony convictions was sentenced in U.S. District Court today to 210 months in prison for committing additional crimes involving firearms and illegal drugs.
On May 22, 2019, a Cincinnati Police Officer attempted to stop a car being driven by Terry Willis, 52. Willis fled on foot and attempted to climb over a barbed-wire fence. When the officer caught him, Willis tried to wrestle away and repeatedly reached toward his waistband. The officer told Willis not to reach, and shortly a second officer arrived and helped subdue Willis.
While handcuffing Willis, officers found in his waistband a 9mm handgun with a round in the chamber and an extended magazine holding 30 rounds of ammunition. Officers also found on Willis’s person a bag containing more than 25 grams of cocaine, another bag with more than six grams of marijuana and more than $1,600 in cash.
A federal grand jury indicted Willis three months later, charging him with possession with intent to distribute illegal drugs, possession of a firearm in furtherance of a drug crime, and possession of a firearm by a prohibited person. He pleaded guilty in August 2021 to all three charges.
Willis has a prior felony conviction for possessing a firearm as a felon and several other felonies relating to distributing and possessing controlled substances. As a previously convicted felon, Willis is prohibited under federal law from possessing firearms or ammunition.
Willis was also sentenced to serve 10 years on supervised release after he completes his prison term.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Cincinnati Police Chief Teresa A. Theetge announced the sentence imposed by U.S. District Court Judge Douglas R. Cole. Assistant United States Attorneys Julie Garcia and Kelly Rossi represented the United States in this case.
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Nigerian National Based in Maryland Sentenced to 4 Years and 9 Months in Prison and Nigerian House Ordered Forfeited for Schemes to Steal Unemployment Insurance BenefitsRead the Press Release
SACRAMENTO, Calif. — Nigerian national Olamide Yusuf Bakare, 26, currently residing in Laurel, Maryland, was sentenced today to four years and nine months in prison for conspiracy to commit wire fraud during the COVID-19 pandemic, U.S. Attorney Phillip A. Talbert announced.
Bakare pleaded guilty in January 2023. According to court documents, between June 2020 and July 2021, Bakare, along with co-defendants Quazeem Owolabi Adeyinka and Ayodeji Jonathan Sangode, and others, participated in a conspiracy to submit fraudulent unemployment insurance (UI) and Pandemic Unemployment Assistance (PUA) claims to the States of Maryland and California. More than 200 individual applications were filed with the California Employment Development Department (EDD) and the Maryland Department of Labor (MDOL) indicating that the claimants’ address was the Hyattsville, Maryland, apartment that the defendants shared.
During the conspiracy, the conspirators obtained the personally identifiable information (PII) of persons who were not eligible for UI or PUA benefits or who did not authorize the conspirators to act on their behalf with respect to seeking such benefits. Such PII included names, dates of birth, and Social Security numbers. The conspirators then used the PII to submit dozens of fraudulent UI and PUA claims to EDD and MDOL under the putative claimants’ identities and without their authorization.
The underlying benefit applications contained fraudulent representations, including, for example, that the claimants had worked for certain employers and supervisors; had specific annual incomes; worked during certain time periods; were self-employed in various occupations; were laid off and had no work; were newly unemployed due to a disaster including the COVID-19 pandemic; and were currently available to work. Most, if not all, of these claims were false because the claimants were not so previously working, employed, newly unemployed, or seeking new employment.
The conspirators knew that these representations were false or lacked the knowledge and authority to make such representations. These actions caused EDD and MDOL to approve at least 142 fraudulent UI and PUA claims.
For each approved claim, EDD and MDOL deposited benefit funds into a debit card account administered by Bank of America and under the identity of the putative claimant. Bank of America then mailed at least 142 unauthorized debit cards to addresses under the control of the defendants. Bakare then obtained these debit cards to withdraw cash at ATMs for the benefit of himself and his coconspirators.
During this conspiracy, Bakare also possessed three additional UI debit cards which had been issued by Maine’s Bureau of Unemployment Compensation, North Carolina’s Division of Employment Security, and Nevada’s Department of Employment Training and Rehabilitation. Each debit card was linked to an account that contained UI benefits. Bakare was not the named beneficiary on the cards or for the associated benefits, and he possessed them with intent to defraud the state agencies.
The debit cards that Bakare possessed and used during the conspiracy were linked to bank accounts that received a total of at least $2,265,844 in fraudulent UI and PUA benefits. He used this money, in part, to purchase a condominium in Lekki, Lagos State, Nigeria for $70 million Naira. As part of the sentence, this asset was ordered forfeited.
This case is the product of an investigation by the Department of Labor – Office of the Inspector General, the Federal Bureau of Investigation, the Department of Homeland Security – Office of the Inspector General – Covid Fraud Unit, and the California EDD – Investigation Division. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.
Adeyinka pleaded guilty to conspiracy to commit wire fraud, and Sangode pleaded guilty to access device fraud. Both are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Aug. 22, 2023. Adeyinka faces a maximum statutory penalty of 20 years in prison, and Sangode faces a maximum statutory penalty of 15 years in prison. Their actual sentences, 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.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of three interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
New Mexico State Police Officer Arrested for Possession and Transportation of Child PornographyRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Sammy Allen Clouthier, 44, of Carlsbad, made an initial appearance in federal court on a criminal complaint charging him with possession of child pornography and transportation of child pornography.
According to the criminal complaint, on April 18, 2023, the FBI was made aware of a tip provided to the National Center for Missing and Exploited Children (NCMEC) on Dec. 29, 2022, by cloud service provider Synchronoss Technologies, Inc. Synchronoss provides content storage for the wireless communication service provider Verizon. Synchronoss reported images depicting apparent child sexual abuse material (CSAM) were uploaded to an account associated with Clouthier’s phone number and device. Follow-up investigation revealed that Clouthier, a sergeant in the New Mexico State Police, downloaded, possessed, and transported child pornography using his cellular devices.
A criminal complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Clothier faces a mandatory minimum of 5 years up to 20 years in prison.
This case was investigated by the Albuquerque Division Child Exploitation and Human Trafficking Task Force of the Federal Bureau Investigation. Assistant United States Attorney Eliot Neal is prosecuting the case.
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New Bedford Man Sentenced for Role in Fentanyl Trafficking OrganizationRead the Press Release
BOSTON – A New Bedford man was sentenced today in federal court in Boston for his role in a drug trafficking organization (DTO) operating in Southeastern Massachusetts and Rhode Island.
Jason Cruz, 42, was sentenced by U.S. District Court Judge Allison D. Burroughs to 16 months in prison and three years of supervised release. In May 2023, Cruz pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl.
Between approximately April 2022 and approximately June 2022, Cruz purchased fentanyl from the DTO that he then redistributed to others. Intercepted communications depicted Cruz discussing purchasing fentanyl from the DTO. In addition, surveillance footage showed other members of the DTO visiting Cruz’s residence for brief periods of times, often times consistent with illegal drug trafficking.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; New Bedford Police Chief Paul Oliveira; and Fairhaven Police Chief Michael J. Myers made the announcement today. Special assistance was provided by the Massachusetts State Police; Homeland Security Investigations; Bristol County Sherriff’s Office; and Fall River, Taunton, Attleboro, Scituate, Yarmouth, Providence (R.I.) and West Warwick (R.I.) Police Departments. Assistant U.S. Attorney John T. Mulcahy of the Narcotics & Money Laundering 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.
Mobile Man Sentenced to 7 Years for Armed RobberyRead the Press Release
Justin Pickens, 29, was sentenced to 7 years in prison for Interference with Commerce by Robbery and Brandishing a Firearm During a Crime of Violence. Pickens entered a guilty plea to these offenses on April 24, 2023.
According to court documents filed in connection with his guilty plea, on July 11, 2021, Pickens went to the Circle K located at 5550 Highway 90, in Mobile, displayed a firearm to the clerk, and took $51 and 100 cartons of cigarettes. Pickens then grabbed the store telephone and left the business.
Chief Judge Jeffrey U. Beaverstock imposed an 84-month sentence of incarceration and a 5-year term of supervised release upon Pickens’ discharge from prison. Chief Judge Beaverstock ordered that Pickens pay $200 in special assessments and $491 in restitution.
The Mobile Police Department and Federal Bureau of Investigations (FBI) investigated this case. Assistant United States Attorneys Vicki Davis and Kacey Chappelear prosecuted the case.
Mississippi Men Sentenced for Hunting ViolationsRead the Press Release
Oxford, MS – Two North Mississippi men were sentenced today to one-year of probation and ordered to pay a total of $30,000 in fines and restitution for illegally killing a white-tailed deer in Tennessee and transporting the deer across state lines to Mississippi.
According to court documents, Christopher Lee Jones, 42, of Hernando, Mississippi, and Heath Thomas Harris, 42, of Senatobia, Mississippi, each plead guilty to one count of violating the Lacey Act for killing a white-tailed deer in violation of state law and transporting it across state lines. In December 2019, Jones and Harris killed a white-tailed deer on property located west of Tchulahoma Road and north of Jackson Pit Road in Memphis, Tennessee, violating various Tennessee laws in the process, including hunting in Tennessee without a license. After killing the deer illegally in Tennessee, Jones and Harris transported the deer into Mississippi, in violation of the Lacey Act. Each defendant was ordered to pay a fine in the amount of $1,000, restitution to the Tennessee Wildlife Resources Agency in the amount of $9,185 and fines payable to the Lacey Act Rewards Account in the amount of $4,875, as well as forfeit the antlers to the U.S. Fish and Wildlife Service. Additionally, each defendant was placed on probation for a period of one year, during which time they will be prohibited from hunting anywhere in the world as a condition of their probation.
U.S. Fish & Wildlife Service Office of Law Enforcement Special Agent in Charge Stephen Clark stated, “The U.S. Fish and Wildlife Service, Office of Law Enforcement is committed to conducting criminal investigations with the Mississippi Department of Wildlife, Fisheries and Parks and the Tennessee Wildlife Resources Agency to conserve, protect, and enhance fish, wildlife, plants and their habitats. The Office of Law Enforcement takes violations of the Lacey Act seriously. This multi-year investigation involving the two defendants responsible for the unlawful harvest and subsequent transportation in interstate commerce of a white-tailed deer from Tennessee to Mississippi is no exception. We will continue to work closely with our state partners to conduct these important joint investigations.”
This case was investigated by the U.S. Fish and Wildlife Service, the Tennessee Wildlife Resources Agency, and the Mississippi Department of Wildlife, Fisheries and Parks. The case was prosecuted by AUSA Robert Mims.
The U.S. Fish and Wildlife Service encourages members of the public to report allegations of wildlife crimes to the Service’s Office of Law Enforcement via the Wildlife Crime Tips page at https://www.fws.gov/wildlife-crime-tips or via phone at 1-844-FWS-TIPS (1-844-397-8477).
Middletown Man Admits Robbing 3 Supermarket BanksRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that GINO RIZZO, 29, of Middletown, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to bank robbery.
According to court documents and statements made in court, using notes demanding cash, Rizzo robbed People’s United Bank branches located in Stop & Shop supermarkets in Glastonbury on July 16, 2022, in Newington on July 18, 2022, and in West Hartford July 20, 2022.
Rizzo was arrested on July 21, 2022.
On April 11, 2023, while on pre-trial release, Rizzo disconnected his GPS electronic monitoring bracelet and absconded from his court-mandated rehabilitation center. He has been detained since his re-arrest on May 22, 2023.
Judge Meyer scheduled sentencing for October 17, at which time Rizzo faces a maximum term of imprisonment of 20 years.
This matter has been investigated by the Federal Bureau of Investigation and the Middletown, Glastonbury, Newington, and West Hartford Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Stephanie T. Levick and Robert S. Dearington.
Michigan City Woman Sentenced to 63 Months in PrisonRead the Press Release
SOUTH BEND –Carissa McCoy, 42 years old, of Michigan City, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to conspiracy to distribute fentanyl, announced United States Attorney Clifford D. Johnson.
McCoy was sentenced to 63 months in prison followed by 5 years of supervised release.
According to documents in the case, from June through mid-August 2021, McCoy conspired with others to distribute fentanyl in the Michigan City area. Her home, which she shared with one of her co-defendants, housed currency, firearms, and ammunition related to the conspiracy. In August 2021, McCoy and one of her co-defendants were stopped by law enforcement while traveling back to Michigan City. At that time, McCoy had over a kilogram of fentanyl pills on her person.
This case was investigated by the Drug Enforcement Administration (including the Chicago Field Division, the Merrillville District Office, the Amarillo Texas Resident Office and the Albuquerque New Mexico District Office) with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the LaPorte County Drug Task Force, an Indiana HIDTA Initiative, and the Michigan City Police Department. The case was prosecuted by Assistant United States Attorneys Kimberly L. Schultz and Joel Gabrielse.
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.
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Memphis Man Sentenced to 135 Months for Transporting Narcotics on a Memphis-Bound AirplaneRead the Press Release
Memphis, TN – Michael Jefferson, 45, of Memphis has been sentenced to 135 months in federal prison for possession with intent to distribute approximately 12 kilos of methamphetamine. U.S. Attorney Kevin R. Ritz for the Western District of Tennessee announced the sentence today.
According to information presented in court, on March 26, 2022, officers with the Memphis Airport Police, detectives with the Shelby County Sheriff’s Narcotics Division, and special agents with the Drug Enforcement Administration were conducting routine drug searches at the Memphis International Airport when a drug detection dog gave a positive alert to the presence of narcotics inside luggage belonging to Jefferson. A search of the luggage revealed 12 kilos – or just over 26 pounds – of methamphetamine.
Jefferson pled guilty to the offense. On July 20, 2023, U.S. District Judge Mark S. Norris sentenced Jefferson to 135 months in federal prison and 3 years of supervised release.
This case was investigated by the Memphis Airport Police, the Shelby County Narcotics Division, and the Drug Enforcement Administration’s Louisville Division.
Assistant U.S. Attorneys Jennifer Musselwhite and Michelle Kimbril-Parks prosecuted this case on the government’s behalf.
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Massachusetts Man Sentenced for Lottery Tax Fraud ConspiracyRead the Press Release
BOSTON – A Massachusetts man was sentenced today in federal court in Boston for his role in an elaborate “ten-percenting” tax fraud conspiracy involving dozens of convenience stores across Massachusetts.
Mohamed Jaafar, 31, of Watertown, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to six months in prison and two years of supervised release. Jaafar was also ordered to pay $964,569 in restitution. In November 2022, Jaafar pleaded guilty to one count of conspiracy to defraud the United States. In May 2023, Jaafar’s co-conspirators, Ali Jaffar and Yousef Jaafar, were sentenced to five years and 50 months, respectively.
Between 2011 and 2020, the defendants purchased winning lottery tickets from individuals across Massachusetts who wanted to sell their winning tickets for a cash discount instead of claiming their prizes from the Massachusetts State Lottery Commission. This allowed the real winners to avoid identification by the Commission, which is legally required to identify lottery winners and withhold any outstanding taxes, back taxes and child support payments before paying out prizes. The defendants recruited and paid the owners of dozens of convenience stores to facilitate the transactions. After purchasing tickets from the lottery winners at a discount, using the convenience stores as go-betweens, the defendants falsely claimed the full amount of the prize money as their own. The defendants then further profited by reporting the winnings on their income tax returns and claiming equivalent fake gambling losses as an offset, thereby avoiding federal income taxes and receiving fraudulent tax refunds.
In total, the defendants unlawfully claimed more than 14,000 winning lottery tickets and laundered over $20 million in proceeds. The result was more than $6 million in federal tax loss. As a direct result of this case, the Massachusetts State Lottery Commission is in the process of revoking or suspending the licenses of more than 40 lottery agents.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorneys Christopher J. Markham and Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Man Sentenced to over 21 Years in Federal Prison for Sexually Assaulting a Child on the Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin,announced that Gerald “Doon” Pamaska (age: 55) received a sentence of 258 months in federal prison following a conviction for sexually assaulting a child on the Menominee Indian Reservation.
The sentence, imposed on July 24, 2023, by Senior United States District Judge William C. Griesbach, was the result of a guilty plea entered by Pamaska on April 21, 2023. Following his prison sentence, Pamaska will serve the remainder of his life on supervised release.
According to court documents, in the summer of 2019, Pamaska, who formerly resided in Keshena, Wisconsin, sexually abused a then-9-year-old girl in a hotel room on the Menominee Indian Reservation. The abuse was disclosed in April 2022. An FBI agent and tribal detective located the defendant in a Kansas jail and interviewed him there. The defendant admitted the offense and corroborated much of what the girl said about the timing and location of the crime.
In sentencing the defendant, Judge Griesbach noted the obvious need for a significant sentence for a “horrendous offense.” Judge Griesbach based the sentence on the magnitude of the offense and noted a strong need to protect the public from the defendant. Judge Griesbach also remarked upon the need to send a strong message to deter “anyone but the undeterrable” from committing similar actions.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, with assistance from the Willow Tree Cornerstone Child Advocacy Center. Assistant United States Attorney Andrew J. Maier prosecuted the case in United States District Court in Green Bay.
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Malden Man Sentenced to 10 Years in Prison for Trying to Hire Contract Killer to Murder His WifeRead the Press Release
BOSTON – A Malden man was sentenced yesterday in federal court in Boston for attempting to hire a contract killer – who was actually an undercover federal agent – to murder his then-wife.
Massimo Marenghi, 57, was sentenced by U.S. District Court Judge Allison D. Burroughs to 120 months in prison and three years of supervised release. On March 16, 2023, Marenghi pleaded guilty to one count of murder-for-hire.“Domestic violence is a truly haunting reality that is far too pervasive in our society. At its core, that is what the prosecution of Mr. Marenghi was all about. He was looking to engage in the most extreme form of domestic violence by plotting the murder of his wife. While the vast majority of domestic violence situations do not involve the federal criminal law, when this office has an opportunity to hold people accountable for this type of despicable conduct, we will spare no effort in prosecuting such offenders,” said Acting United States Attorney Joshua S. Levy.
“Massimo Marenghi plotted to kill his wife and went to great lengths not to get caught. Thankfully, his plot was thwarted because the person he thought was a contract killer was in fact an undercover FBI Special Agent,” said Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Mr. Marenghi’s conduct in this case was truly horrific, and today’s sentence is just. It is our hope the victim in this case can rest easier knowing that he will spend the next decade behind bars.”
In January 2021, an individual reported to law enforcement that Marenghi had complained about his then-wife seeking a restraining order against him. Marenghi asked the individual for assistance in killing his wife. At the direction of federal agents, the individual introduced Marenghi to an undercover agent who posed as a contract killer. Later that month, Marenghi met with the undercover agent and sought help to “eliminate” his problem. Marenghi provided the undercover agent with a photograph of his then-wife’s residence and explained how to evade detection by cameras while approaching the residence.
On Jan. 29, 2021, Marenghi again met with the undercover agent and discussed moving forward with the killing of his wife, providing a $1,500 cash deposit for the murder. Marenghi explained that the sooner the “demolition job” took place, the sooner he would be able to pay the balance owed. He also provided a photograph of his then-wife, the color, model and license plate number of her car, the hours of operation of her place of business and a schedule indicating when he would have custody of his children, which he said would be the “best time for the construction work to start.”
Acting U.S. Attorney Levy and FBI Acting SAC DiMenna made the announcement today. The Malden Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Adam Deitch of the Criminal Division prosecuted the case.
Long Island Investment Advisers Indicted for Defrauding Clients of Millions of DollarsRead the Press Release
A 16-count indictment was unsealed today in federal court in Central Islip charging investment advisers Adam Kaplan and his brother, Daniel Kaplan, with conspiracy to commit wire fraud, wire fraud, investment advisor fraud, and money laundering in connection with several schemes to steal millions of dollars from their clients. The defendants were arrested today and will be arraigned this afternoon before United States Magistrate Judge James M. Wicks.
Breon Peace, United States Attorney for the Eastern District of New York, and Christie M. Curtis, Acting Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.
“As alleged, the Kaplans engaged in years-long schemes violating the trust that their clients, some of them elderly and vulnerable, had placed in them to manage their money safely and honestly,” stated United States Attorney Peace. “The defendants lined their pockets at the victims’ expense, but with their lies and frauds exposed, they will be held to account for their conduct.”
Mr. Peace thanked the Securities and Exchange Commission for their assistance with the case.
“As alleged, the Kaplans engaged in multiple investment fraud schemes that victimized their clients, many of whom were elderly or disabled. This type of illegal activity is unfortunately all too common and even more egregious when vulnerable groups are targeted,” stated FBI Acting Assistant Director-in-Charge Curtis. “The FBI will continue to investigate and hold accountable those who exploit their clients by misappropriating their funds for personal gain.”
As set forth in the indictment and other public filings, between May 2018 and November 2022, Adam and Daniel Kaplan acted as investment advisors for hundreds of clients. The defendants used their positions of trust to misappropriate millions of dollars from their clients, some of whom were elderly and disabled. The defendants used various schemes to misappropriate the victims’ funds, including overbilling for advisory fees, siphoning money from bank accounts through fraudulent advisory fee charges and through purported “investments” defendants never intended to make. The defendants lied to their clients about the fraudulent charges, forged their clients’ signatures on documents, and made misrepresentations to financial institutions. In total, the defendants misappropriated at least $5 million, using the funds for personal expenses and to purchase luxury goods.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years in prison.
If you were a client of Adam Kaplan or Daniel Kaplan and would like to file a complaint, please visit www.iC3.gov. Please reference “Adam Kaplan” or “Daniel Kaplan” in your complaint.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher Caffarone, Paul Scotti, and Adam Toporovsky are in charge of the prosecution.
The Defendants:
ADAM KAPLAN
Age: 34
Great Neck, New YorkDANIEL KAPLAN
Age: 34
Great Neck, New YorkE.D.N.Y. Docket No. 23-CR-293 (GRB)
Leader of drug trafficking organization faces 27-30 years in prison following guilty plea to drug trafficking, sex trafficking, and money launderingRead the Press Release
COLUMBUS, Ohio – A leader of a large-scale conspiracy involving narcotics distribution, sex trafficking, fraud, and money laundering pleaded guilty in U.S. District Court today. The plea agreement includes an agreed sentencing range of 27-30 years in prison.
Patrick M. Saultz, 45, a/k/a/ “White Boy Pat” of Columbus, pleaded guilty to three violations of federal law - conspiracy to distribute and possess with intent to distribute controlled substances within 1,000 feet of an elementary school, conspiracy to commit sex trafficking, and concealment money laundering.
According to court documents, between January 2008 and 2022, the organization brought large quantities of illegal narcotics into Columbus, Ohio, and sold them in and around the Columbus area while simultaneously coercing individuals to engage in sexual activity for profit, from which the organization benefited. Members of the organization trafficked various controlled substances - including fentanyl, cocaine, crack cocaine, heroin, methamphetamine, marijuana, oxycodone, and alprazolam - to individuals in northern Ohio, Columbus, and West Virginia.
“This organization flooded our streets with staggering amounts of illegal drugs,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio. “Investigators calculated that the organization was selling approximately 40 grams of fentanyl per day out of each drug house they oversaw, and a conservative estimate concludes that, in addition, the organization dealt kilogram quantities of cocaine and crack cocaine during the course of its operation as well.”
Saultz acknowledged that he and a co-conspirator co-owned and operated multiple pieces of real estate on the west side. They used money from their illegal activities to buy property, launder the drug proceeds and to further their illegal activities. One of the houses they bought and used for drug-dealing was across the street from Burroughs Elementary School in Columbus.
Court documents also detail how Saultz and numerous other members of the organization ran a sex trafficking operation, coercing women with illegal drugs to engage in prostitution. The women were required to turn the money they received from their prostitution activities over to him and other organization members in return for places to stay, and for more drugs, fueling their addictions further.
The plea agreement requires Saultz to pay restitution to the victims of sex trafficking, and to forfeit his rights to all property seized during the investigation including two cars, a motorcycle, dozens of firearms, a Rolex watch and more than $1.7 million in cash in addition to the real estate.
A federal grand jury initially indicted Saultz along with 10 others in July 2022. A superseding indictment in October 2022 added 13 defendants and added 28 new charges to the narcotics conspiracy, including firearms offenses and an overdose causing serious bodily injury. Charges against the others are still pending.
U.S. Attorney Kenneth L. Parker commended the investigation coordinated by The Central Ohio Human Trafficking Task Force, formed under the Ohio Attorney General Dave Yost’s Ohio Organized Crime Investigations Commission, which includes Columbus Division of Police Chief Elaine Bryant; Angie Salazar, Special Agent in Charge, Homeland Security Investigations; and Orville O. Greene, Special Agent in Charge, U.S. Drug Enforcement Administration. Other agencies that have assisted the task force with the investigation include the Franklin County Sheriff's Office, HIDTA Task Force, IRS-Criminal Investigation, FBI, Ohio Bureau of Criminal Investigations (BCI), Ohio National Guard Counter Drug Task Force, Pickerington Police Department, New Albany Police Department, and the Fairfield County Sheriff's Office SWAT Team. They joined Parker in announcing the pleas entered before U.S. District Judge Edmund A. Sargus Jr.
Assistant United States Attorneys Timothy Prichard and Emily Czerniejewski are representing the United States in this case.
This investigation 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 OCDETF can be found at https://www.justice.gov/OCDETF.
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Kingston Man Sentenced for Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK –Thomas O’Bryan, age 41, of Kingston, New York, was sentenced today to serve 110 months in prison for distributing and possessing of child pornography, announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his earlier guilty plea, O’Bryan admitted that between March and September 2020, he traded child pornography on a social media application using the screenname “irishbstrdinc.” The defendant also admitted that on September 22, 2020, he possessed child pornography, which included depictions of sadistic and masochistic conduct, as well as the sexual abuse and exploitation of toddlers.
United States District Judge Glenn T. Suddaby also imposed a 15 year-term of post-release supervision, ordered O’Bryan to pay $3,000 restitution to a child victimized in some of his child pornography, and ordered O’Bryan to forfeit the laptop and cell phone that he used to commit his crimes.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the New York State Police, and the Colonie and Rotterdam Police Departments. Former Assistant United States Attorney Rachel L. Williams and Assistant United States Attorney Jonathan S. Reiner prosecuted this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Justice Department Advances Proposed Rule to Strengthen Web and Mobile App Access for People with DisabilitiesRead the Press Release
The Justice Department sent to the Federal Register for publication a notice of proposed rulemaking under Title II of the Americans with Disabilities Act (ADA) that aims to improve web and mobile applications (apps) access for people with disabilities and clarify how public entities – primarily state and local governments – can meet their existing ADA obligations as many of their activities shift online.
Across the United States, people routinely rely on web and mobile apps to access a variety of vital public programs and services like employment and educational resources, voting information, health and emergency services, parking, and transit schedules. The proposed rule is particularly significant in the wake of the pandemic, as public entities have significantly increased the scope of essential services and programs offered through the web and mobile apps. It is critical for these technologies to be accessible for people with disabilities.
“This marks the first time in the history of the Americans with Disabilities Act that the Justice Department has issued a proposed rule on website accessibility,” said Attorney General Merrick B. Garland. “This proposed rule seeks to ensure that Americans with disabilities have equal access to the websites and apps that connect them to essential services provided by state and local governments.”
“This proposed rule, which is the culmination of years of work and collaboration, is a historic moment for the Justice Department,” said Associate Attorney General Vanita Gupta. “It will help enshrine the right of Americans with disabilities to access critical information needed to lead safe, productive, and prosperous lives.”
“This proposed rule marks a significant milestone in the Justice Department’s efforts to advance accessibility in the digital sphere,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This groundbreaking moment makes clear our commitment to eradicating the barriers faced by people with disabilities and affording equal access to online government programs and services that people around the country depend on every day. We will continue to use every tool available to ensure that people with disabilities are provided full access to the digital town square.”
As state and local governments continue to move more of their programs and activities online – from applying for permits to checking the status of service requests, registering vehicles, and paying taxes and fees – ensuring that people with disabilities have equal access to these same services is essential. When websites and mobile apps are not accessible, they can be difficult or even impossible for people with disabilities to use. This can block people with disabilities from readily accessing important government services and programs that others can quickly and easily obtain online.
The Department is eager to hear from the public and get input from relevant stakeholders on the regulatory proposal set forth in our forthcoming proposed rule. The proposed rule will soon be available for review on the Federal Register’s website at www.federalregister.gov. A fact sheet that provides information about the proposed rule will soon be available on www.ada.gov. The Department invites the public to submit their comments on the proposed rule once it is published. The comment period will be open for 60 days from the date the proposed rule is published. Public comments can be submitted on www.regulations.gov.
For more information on the Civil Rights Division, please visit the Department’s website. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit the ADA website.
Jury convicts Cincinnati woman of crimes related to COVID-19 relief fraudRead the Press Release
A federal jury in the Southern District of Ohio today convicted Kelli Prather, 51, of Cincinnati of crimes pertaining to her request for more than $1.2 million in pandemic relief loans. She was remanded to the custody of the U.S. Marshals after the jury returned its guilty verdicts.
According to testimony and evidence presented during the trial that began July 18, Prather applied for six Paycheck Protection Program (PPP) loans as part of the CARES Act COVID-19 pandemic relief. She claimed to own six businesses – Enhanced Healthcare Solutions, Life Skills Enhancement, Prather Property Management, Reliable Ambulette Services, Rich Glo Management Services and Tots R Us.
Separately, Prather also applied for eight Economic Injury Disaster Loans (EIDL). In three of the EIDL applications she filed in November 2020, she represented that the businesses were majority owned by her disabled nephew.
Prather sought more than $1.2 million in fraud relief and fraudulently received approximately $19,800.
The jury convicted her of six counts of bank fraud (punishable by up to 30 years in prison), one count of making false statements in connection to credit or loan applications (up to 30 years in prison), four counts of wire fraud (up to 20 years in prison), and three counts of aggravated identity theft (carrying a mandatory 2-year sentence to run consecutive to any other sentence imposed). The court will set a date for sentencing following a pre-sentence investigation.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, the Federal Bureau of Investigation, and the Social Security Administration Office of the Inspector General; and other members of the Financial Crimes Working Group Pandemic Fraud Committee announced the verdict at the conclusion of the trial before U.S. District Court Judge Matthew W. McFarland. Assistant United States Attorneys Anthony Springer and Ebunoluwa A. Taiwo are representing the United States in this case.
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Joint Statement from Mexico and the United States on Shared Efforts to Combat Illicit Fentanyl, Disrupt Arms Trafficking, and Humanely Manage MigrationRead the Press Release
On July 24, President Andrés Manuel López Obrador and senior Government of Mexico officials hosted a U.S. delegation led by Homeland Security Advisor Dr. Elizabeth Sherwood-Randall, Deputy Attorney General Lisa O. Monaco, Acting Deputy Secretary of Homeland Security Kristie Canegallo, and Deputy Secretary of State for Management and Resources Rich Verma to further the significant cooperation that our countries already have undertaken, including on the global fight against illicit fentanyl and dual-use chemical substances, combatting arms trafficking, managing migration, and modernizing our shared border. This meeting built on previous high-level meetings led by Dr. Sherwood-Randall and Security Secretary Rosa Icela Rodríguez.
The leaders discussed our commitment to continuing joint efforts under the U.S.-Mexico Bicentennial Framework for Security, Public Health, and Safe Communities to combat drug traffickers, disrupt the supply of the chemicals used to make illicit fentanyl, prevent trafficking of these deadly narcotics across our shared border, and promote public health services to reduce harm and demand and increase treatment services. Our countries also recognize that discovering, disrupting, and dismantling firearms trafficking networks is critical to our shared efforts to combat illicit fentanyl, and we remain committed to addressing firearms trafficking that contributes to violence and destruction on both sides of our shared border.
The leaders also discussed the challenges and progress in cooperation regarding regional migration and committed to continue to forge a region-wide response, guided by the principles in the Los Angeles Declaration on Migration and Protection. To that end, the United States and Mexico committed to further expand the availability of legal pathways throughout the region, including to Mexico and the United States. Leaders also discussed expanding our joint development work in Central America, and maintaining strong consequences for irregular entry at our shared border.
Finally, the United States and Mexico committed to furthering ongoing work to modernize and advance infrastructure projects that support our border communities and benefits both nations and strengthens our bilateral relationship and security.
Johnstown Woman Sentenced to 70 Months in Prison and 4 Years of Supervised Release for Conspiring to Distribute and Possess with Intent to Distribute Cocaine and HeroinRead the Press Release
JOHNSTOWN, Pa. – A former resident of Johnstown, PA, has been sentenced in federal court to a total of 70 months in prison followed by 4 years of supervised release on her conviction of conspiracy to distribute and possess with intent to distribute cocaine base, cocaine, and heroin, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Willette Cooper, age 41, of Johnstown, Pennsylvania.
According to information presented to the court, from on or about April 2019, to on or about July 2021, Cooper did conspire to distribute and possess with intent to distribute 28 grams or more of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as crack, a quantity of a mixture and substance containing a detectable amount of cocaine, and a quantity of a mixture and substance containing a detectable amount of heroin.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Mr. Olshan commended the Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations for the investigation that led to the successful prosecution of Cooper. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Pennsylvania Office of the Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department and other local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
In separate cases, two men plead guilty to dealing fentanyl while armed with handgunsRead the Press Release
Seattle – Two men – both involved with firearms and fentanyl -- pleaded guilty this week in U.S. District Court in Seattle to federal charges that carry a mandatory minimum of five years in prison, announced Acting U.S. Attorney Tessa M. Gorman. Jade Alexander Beavin, 33, of Everett will be sentenced by U.S. District Judge Richard A. Jones on October 20,2023. Lavonta Austin, 30, of Seattle will be sentenced by U.S. District Judge James L. Robart on October 17, 2023.
“Our office and our investigative partners work every day to stop the flow of fentanyl into our community,” said Acting U.S. Attorney Gorman. “We pursue large cartel-connected drug rings that import hundreds of thousands of pills, as well as individual dealers whose criminal conduct with guns and drugs undermines the safety of our community. These two defendants who pleaded guilty this week, were caught repeatedly with drugs and guns, conduct that ultimately landed them in federal court.”
Jade Beavin was arrested by Everett Police on July 27, 2021, with three kilos of fentanyl powder in the trunk of his car. In the interior of the car was a loaded 9mm handgun. A court authorized search of the car also resulted in the seizure of a scale, ammunition, and drug ledger. Beavin was also arrested with narcotics and a revolver in January 2020 and was arrested with a third firearm in February 2022. When he is sentenced, prosecutors will recommend no more than ten years in prison and the defense has agreed to recommend no less than eight years in prison.
Lavonta Austin was first contacted by Seattle Police at 3rd Avenue and Pike Street in downtown Seattle on August 4, 2022. After selling fentanyl pills to an undercover officer, Austin attempted to run from police when they took him into custody. Austin had methamphetamine, fentanyl, more than $2,000 in cash and a loaded 45 caliber handgun. A few months later, on October 9, 2022, Austin was arrested at a Seattle motel with fentanyl, methamphetamine, $1,770 in cash and a loaded 9mm handgun. Both the prosecutors and defense will recommend a 5-year sentence.
In both cases the judge is not bound by the recommendation and can impose any sentence allowed by law.
Both men pleaded guilty to possession of controlled substance with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. The drug possession charge is punishable by up to 20 years in prison. The gun crime is punishable by a mandatory minimum five years in prison that runs consecutive to the sentence imposed on the drug possession charge.
U.S. v. Beavin was investigated by the Everett Police Department and the FBI. U.S. v. Austin was investigated by the Seattle Police Department and the Drug Enforcement Administration (DEA). Both cases are being prosecuted by Assistant United States Attorney Cecelia Gregson.
Hocking County woman sentenced to 40 years in federal prison for sexually exploiting children as young as 3-years-oldRead the Press Release
COLUMBUS, Ohio – A Logan, Ohio, woman was sentenced in federal court here today to 480 months in prison for sexually exploiting minors as young as 3-years-old and possessing child pornography.
Carrie Daniels, 38, was charged federally in April 2022 along with her significant other, Robert Gemienhardt, 42. Gemienhardt was sentenced to 45 years’ incarceration in February 2023 for producing child pornography of a 3-year-old child and possessing thousands of images of child sexual abuse, some of which depicted other minor children to whom the defendants had access.
The two defendants groomed minor victims, sexually abused the victims, and created child pornography of the abuse.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received a tip from Kik messenger regarding Gemienhardt’s online child exploitation activities conducted at Daniels’s residence. The Ohio Internet Crimes Against Children (ICAC) Task Force and the Hocking County Sheriff’s Office then began investigating the allegations and learned that four minor children lived in the home with Daniels and Gemienhardt.
Subsequent search warrants executed by the Hocking County Sherriff’s Office, in conjunction with the FBI, revealed that Daniels had produced child pornography of an approximately 3-year-old child and distributed the images she had produced to Gemienhardt. Those images were ultimately recovered on Gemienhardt’s phone. Daniels also photographed two of the minor children, who were 9 and 13 years of age at the time, nude in the bathroom. Daniels then sent those images of the minor children to Gemienhardt as well. Further evidence revealed that at times, Gemienhardt and Daniels acted together to produce child pornography through the grooming and sexual abuse of two of the minor victims to whom they had access between April and June of 2020.
Daniels and Gemienhardt, who was a registered sex offender in the state of Ohio, exchanged thousands of illicit text messages detailing their sexual fantasies about four separate minor victims.
Daniels pleaded guilty in October 2022 to sexually exploiting minors and possessing child pornography.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Hocking County Sheriff Lanny E. North announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
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Hardin County Man Sentenced to 40 Years in Federal Prison for Child Pornography OffensesRead the Press Release
Louisville, KY – A Hardin County man was sentenced today to 40 years in prison for child pornography offenses.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
According to court documents, in Hardin County Kentucky, Michael Smith, 30, produced videos of his sexual abuse of a minor victim, and uploaded images and videos of child pornography to a cloud-based storage application via the internet. Smith was sentenced to 40 years in prison, followed by a 20-term of supervised release, for producing, transporting, and possessing child pornography. There is no parole in the federal system.
In addition to the 40-year prison sentence, Smith was ordered to pay restitution to victims in the amount of $6,000.
“I commend the FBI and LMPD for their investigation of this case as well as AUSA McKiness for his work prosecuting Smith,” said U.S. Attorney Bennett. “The sexual exploitation of children in the Western District is a top priority of this office. We will continue to aggressively investigate and prosecute those who harm our children.”
The case was investigated by the FBI with assistance from the Louisville Metro Police Department.
Assistant U.S. Attorney A. Spencer McKiness prosecuted the case.
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.”
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Hampton Man Sentenced for the Unlawful Sale of at Least 49 Firearms as a Federal Firearms LicenseeRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 30 months in prison for selling at least 49 firearms unlawfully.
According to court documents, Anthony Gale Turner, 54, was a federally licensed dealer of firearms beginning in 2018. Turner owned and operated his firearms business, G7 Worldwide LLC, out of his residence on Pratt Street in Hampton. The investigation of Turner was launched when the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) traced a handgun seized in Canada in 2020 back to the original purchaser. The original purchaser admitted to ATF agents that they completed the federal form required to purchase the firearm and provided Turner with their Virginia driver’s license for the transaction. However, the original purchaser told agents they never paid for the firearm nor ever took possession of it. Instead, Turner transferred the firearm to a prior convicted felon prohibited from possessing firearms. Through the course of the investigation, ATF interviewed five other straw purchasers of firearms from G7 Worldwide who independently stated Turner completed firearms transaction with their information by similar means between 2018 and 2021. Over the span of less than two years, 46 out of the 49 firearms that were subjects of charges in Turner’s case were transferred from Turner to two known, prior-convicted felons through the five straw purchasers. Three other firearms were directly purchased by prior convicted felons themselves after informing Turner of their prohibited status. The final firearm was unlawfully sold to a known out-of-state resident in violation of Turner’s duties as a licensed firearms dealer. Eight of the firearms are in law enforcement custody after being seized in connection with criminal activity in Virginia, New Jersey, and New York.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Craig Kailimai, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Elizabeth Wilson Hanes.
Assistant U.S. Attorney Peter Osyf 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. 4:22-cr-83.
Globe Metallurgical to Pay $2.6 Million Fine, Implement Extensive Emissions Controls and Limit Sulfur Inputs to Reduce Pollution from Industrial Furnaces in OhioRead the Press Release
Globe Metallurgical, Inc. has agreed to a consent decree that would require it to pay a $2.6 million civil penalty, implement an estimated $6.5 million in new and improved air pollution emissions controls and limit the sulfur content of inputs in its metal production process to settle alleged violations of the Clean Air Act (CAA) at a ferroalloy production facility in Beverly, Ohio. Emissions of air pollutants, such as the sulfur dioxide (SO2) and particulate matter (PM) emitted from Globe’s operation of five electric arc furnaces, may cause adverse environmental and health impacts, including lung disorders such as asthma and bronchitis.
According to the six-count complaint, filed simultaneously with the settlement today in the Southern District of Ohio, Globe allegedly violated CAA requirements following the expansion of one of its furnaces, including a failure to assess best available pollution control technology for the modified furnace and failure to demonstrate compliance with regulations applicable to ferroalloy production plants. The United States also alleged that Globe had a history of excessive emissions of PM from the facility in violation of its existing permits.
“The extensive measures required by today’s settlement will reduce pollution and help prevent future violations of the Clean Air Act, ensuring that the citizens of Southeast Ohio have cleaner air to breathe,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “This case demonstrates that the Department of Justice will work tenaciously to hold accountable companies that violate federal environmental law.”
“This settlement requires Globe to take substantial steps to reduce emissions of harmful air pollutants from industrial furnaces at its Beverly, Ohio facility,” said Principal Deputy Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “The result will be cleaner, healthier air for neighboring communities.”
“Compliance with regulations requiring upgrades to aging industrial facilities are critical when protecting health and the environment,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “The Justice Department and the Environmental Protection Agency are vigilantly ensuring compliance with the Clean Air Act and other environmental laws.”
In addition to paying a penalty, Globe will now be required to utilize coal and other materials with a specified reduced-sulfur content to limit the generation of harmful SO2 emissions. Globe will also take significant steps to reduce emissions of PM, including construction of an additional pollution control baghouse, and implementation of physical improvements to equipment and changes to operational practices to reduce emissions of PM both from stacks and directly to the atmosphere from equipment. Globe will also be conducting extensive testing and implementing significantly enhanced monitoring of air pollutants to ensure ongoing compliance.
The consent decree also brings the Globe facility’s pollution control obligations up to date with environmental regulations that post-date the plant’s construction, including stricter limits on PM and carbon monoxide emissions.
The consent decree is subject to a 30-day comment period and final approval by the court. A copy of the consent decree is available on the Justice Department web site at www.usdoj.gov/enrd/Consent_Decrees.html.
The Environment and Natural Resources Division’s Environmental Enforcement Section is prosecuting this case in conjunction with the U.S. Attorney’s Office for the Southern District of Ohio and EPA Region 5
Former University Professor Sentenced for Child Pornography and Drug ChargesRead the Press Release
DAVENPORT, Iowa – On Friday, July 21, 2023, a former professor at the University of Iowa was sentenced to 25 years in prison for conspiracy to distribute more than 50 grams of methamphetamine which resulted in the death of a victim, and 20 years in prison for possessing child pornography. The sentences were ordered to be served concurrently, or at the same time.
According to court documents, since sometime in 2020, Dr. John Robert Muriello, 66, conspired with Eric Hojka of Iowa City, and others, to obtain and distribute methamphetamine in and around Iowa City. In May 2021, first responders went to Hojka’s apartment in Iowa City based on a report that a victim who had lost consciousness. Paramedics were unable to revive the victim and he was pronounced dead. An autopsy showed the victim ingested methamphetamine which caused his death. The investigation revealed the victim received that methamphetamine from Hojka. Hojka obtained the methamphetamine from Muriello, who had obtained the drugs from a supplier in California. When the police conducted a search at Muriello’s Iowa City residence in May 2021, they discovered methamphetamine and a large collection of child pornography.
In addition to the 25-year prison term, Muriello was ordered to pay restitution in the amount of $12,000, a fine of $50,000, and assessments of $22,200. Muriello’s Iowa City residence was also forfeited. After his prison term, Muriello was also ordered to serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa City Police Department and the Iowa State Medical Examiner’s Office investigated the case.
Former Oregon Corrections Nurse Found Guilty of Sexually Assaulting Nine Female InmatesRead the Press Release
PORTLAND, Ore.—A federal jury in Portland found a former Oregon Department of Corrections employee guilty today of sexually assaulting nine female inmates while serving as a nurse at the Coffee Creek Correctional Facility, Oregon’s only women’s prison.
Tony Daniel Klein, 38, of Clackamas County, Oregon, was convicted of 17 counts of depriving his victims of their constitutional right not to be subjected to cruel and unusual punishment by sexual assault and four counts of perjury.
“Tony Klein used his position of authority to prey on women in custody who were in a uniquely vulnerable position. He further led his victims to believe they had no power to resist or report his abuse,” said Natalie Wight, U.S. Attorney for the District of Oregon. “This verdict would not have been possible without the courage and resolve of these women and the dedication of our partners at the FBI and Civil Rights Division.”
“This defendant is being held accountable for sexually assaulting female inmates under his care, custody and control,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Abuses of power and authority, like this, where the defendant took advantage of his position as a medical professional to satisfy his own sexual desires, will not be tolerated, and justice will be pursued. We thank the survivors of these sexual assaults for having the courage to come forward and tell their story. The Civil Rights Division will continue to vigorously hold accountable those who abuse their authority by committing sexual assault.”
“As a state prison nurse, Mr. Klein used his position to intimidate and sexually assault multiple women. His heinous actions were only brought to light by a small group of courageous women who came forward, even despite their precarious circumstances of being incarcerated. Their willingness to report their victimization undoubtedly saved others from Mr. Klein’s predatory actions,” said Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Field Office. “This verdict demonstrates the commitment by the FBI and our partners at the U.S. Attorney’s Office to hold accountable public officials, who not only violate the public trust, but even go so far as to commit monstrous actions such as those proven at trial in this case.”
According to court documents, from 2010 until January 2018, Klein served as a nurse at the Coffee Creek Correctional Facility in Wilsonville, Oregon. In his position, Klein interacted with female inmates who either sought medical treatment or worked as orderlies in the prison’s medical unit. Aided by his access to the women and his position of power as a corrections employee, Klein sexually assaulted or engaged in nonconsensual sexual conduct with many female inmates entrusted to his care.
By virtue of his position as a medical provider, Klein was often alone with his victims and assaulted many before, during, or after medical treatment. For women who worked in the medical unit, Klein manufactured reasons to get them alone in secluded areas such as medical rooms, janitor’s closets, or behind privacy curtains. Klein made it clear to his victims that he was in a position of power over them, and they would not be believed if they tried reporting his abuse. Fearing punishment if they fought back against or reported his conduct, most of Klein’s victims submitted to his unwanted advances or endured his assaults.
On March 8, 2022, a federal grand jury in Portland returned an indictment charging Klein with depriving his victims of their constitutional right not to be subjected to cruel and unusual punishment by sexual assault and perjury.
Following announcement of the jury’s verdict, Klein was remanded into the custody of U.S. Marshals Service pending his sentencing on October 17, 2023, before U.S. District Court Judge Michael H. Simon. Klein faces a maximum sentence of life in prison.
This case was investigated by the FBI Portland Field Office. It was prosecuted by Cameron A. Bell, Trial Attorney for the Civil Rights Division’s Criminal Section, and Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon. Assistant U.S. Attorney Hannah Horsley assisted the trial team.
Former Oregon Corrections Nurse Found Guilty of Sexually Assaulting Nine Female InmatesRead the Press Release
Note: This release has been updated to reflect the correct number of victims.
A federal jury in Portland, Oregon, convicted a former Oregon Department of Corrections employee guilty today of sexually assaulting nine female inmates while serving as a nurse at the Coffee Creek Correctional Facility, Oregon’s only women’s prison.
Tony Daniel Klein, 38, of Clackamas County, was convicted of 17 counts of depriving his victims of their constitutional right not to be subjected to cruel and unusual punishment by sexual assault and four counts of perjury.
“No woman held inside a jail or prison should be subject to sexual assault at the hands of the officials who work there,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Abuses of power and authority, like this, where the defendant took advantage of his position as a medical professional to satisfy his own sexual desires, will not be tolerated, and justice will be pursued. We thank the survivors of these sexual assaults for having the courage to come forward and tell their story. The Civil Rights Division will continue to vigorously hold prison officials accountable when they abuse their authority by committing sexual assault.”
“Tony Klein used his position of authority to prey on women in custody who were in a uniquely vulnerable position. He further led his victims to believe they had no power to resist or report his abuse,” said U.S. Attorney Natalie Wight for the District of Oregon. “This verdict would not have been possible without the courage and resolve of these women and the dedication of our partners at the FBI and Civil Rights Division.”
“The FBI and our partners remain committed to investigating violations of civil rights in all circumstances,” said FBI Assistant Director Luis Quesada of the Criminal Investigative Division. “The defendant in this case exploited the trust placed in him as a corrections nurse to sexually assault women in his care, but thanks to the bravery of the women who came forward, we are able to pursue justice and prevent future victimization.”
According to court documents, from 2010 until January 2018, Klein served as a nurse at the Coffee Creek Correctional Facility in Wilsonville, Oregon. In his position, Klein interacted with female inmates who either sought medical treatment or worked as orderlies in the prison’s medical unit. Aided by his access to the women and his position of power as a corrections employee, Klein sexually assaulted or engaged in nonconsensual sexual conduct with many female inmates entrusted to his care.
By virtue of his position as a medical provider, Klein was often alone with his victims and assaulted many before, during, or after medical treatment. For women who worked in the medical unit, Klein manufactured reasons to get them alone in secluded areas such as medical rooms, janitor’s closets or behind privacy curtains. Klein made it clear to his victims that he was in a position of power over them, and they would not be believed if they tried reporting his abuse. Fearing punishment if they fought back against or reported his conduct, most of Klein’s victims submitted to his unwanted advances or endured his assaults.
Klein faces a maximum sentence of life in prison. Sentencing is set for Oct. 17 before U.S. District Court Judge Michael H. Simon.
This FBI Portland Field Office investigated the case.
Assistant U.S. Attorney Gavin W. Bruce for the District of Oregon and Trial Attorney Cameron A. Bell of the Civil Rights Division’s Criminal Section prosecuted the case, with assistance from Assistant U.S. Attorney Hannah Horsley for the District of Oregon.
Former Obstetrician/Gynecologist Robert Hadden Sentenced to 20 Years in Prison for Sexually Abusing Numerous PatientsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ROBERT HADDEN was sentenced today to 20 years in prison by U.S. District Judge Richard M. Berman for enticing and inducing four victims to travel interstate to engage in unlawful sexual activity. HADDEN, who practiced medicine between in or about 1987 to 2012, was convicted at trial on January 24, 2023, for inducing four victims to travel interstate to his medical offices in Manhattan so that he could sexually abuse them. The Government proved at trial that the defendant sexually abused dozens of patients over the course of more than two decades under the guise of purported medical examinations.
U.S. Attorney Damian Williams said: “Under the guise of medical treatment, Robert Hadden sexually abused and assaulted numerous patients for approximately 25 years, exploiting them in vulnerable moments for his own sexual gratification. Thanks to the tireless work of the career prosecutors of this Office, Hadden will rightfully spend decades in federal prison. We thank and commend the victims who bravely came forward to share their stories and ensure that their abuser faces justice.”
According to the Indictment, evidence presented at trial, and other filings and statements made in court:
For approximately 25 years, between in or about 1987 and in or about 2012, ROBERT HADDEN sexually abused and assaulted at least dozens of female patients, some repeatedly, as an obstetrician/gynecologist employed by Columbia University Medical Center and during purported medical examinations. HADDEN used his position as a medical doctor employed by a prestigious medical institution to make or to attempt to make his victims believe that the sexual abuse he inflicted on them was appropriate and medically necessary. HADDEN encouraged victims to return to see him and directed victims to schedule follow-up visits on timelines he set. As a result, some of the victims attended many appointments with HADDEN over the course of several years, during which HADDEN sexually abused them. HADDEN caused four victims to return to Manhattan for appointments with him so that he could sexually abuse them, knowing that these victims would have to travel across state lines for their appointment.
HADDEN used sophisticated techniques to carry out his abuse, which he honed over the course of more than two decades. He exploited the power differential inherent in the doctor-patient relationship, he built rapport with victims, he asked victims invasive and unprompted questions about their sexual activity, including about sex positions and if they were able to achieve orgasm, and he provided unsolicited advice on these topics. He also used so-called breast and vaginal exams to hide his abuse, he isolated patients, and he conducted fake examinations.
HADDEN sexually abused victims in various ways, including by massaging and groping victims’ breasts for a prolonged period; groping both breasts at the same time; pinching, twisting, or otherwise manipulating a victim’s nipples; extracting colostrum from a victim’s breasts and tasting it; digitally penetrating and/or rubbing victims’ vaginas in efforts to masturbate them; touching victims’ clitorises; and licking victims’ vaginas. Each of these abusive acts was committed by HADDEN without any valid medical purpose and under the guise of legitimate medical care.
At the sentencing, Judge Berman imposed the statutory maximum penalty for each count of conviction, to run concurrently. The Court described the defendant’s conduct as “exceptional and unprecedented,” “shocking in the extreme,” “horrific,” and “depraved.” In imposing its sentence, the Court discussed, among other things, the magnitude and scope of the defendant’s serial sexual abuse, its unchecked nature, the defendant’s “skillfulness at deception,” the predatory nature of his sex crimes, and the fact that the defendant preyed on vulnerable patients who trusted him, thereby repeatedly violating a “woman’s right to decide what happens to her body.”
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In addition to the prison term, HADDEN, 64, of Englewood, New Jersey, was sentenced to a lifetime of supervised release and ordered to pay a $10,000 fine and a $400 special assessment fee.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Lara Pomerantz, Jane Kim, and Paul Monteleoni are in charge of the prosecution, with the assistance of Paralegal Specialist Connor Hamill.
Former Correctional Officer Sentenced to 43 Months in Prison for Bribery Scheme and Attempting to Assault Inmate He Suspected of Cooperating with the GovernmentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that PERRY JOYNER, a former Bureau of Prisons correctional officer, was sentenced today to 43 months in prison for smuggling contraband into the Metropolitan Correctional Center (“MCC”) in exchange for over $70,000 in bribes from inmates and for attempting to have an inmate assaulted to keep that inmate from reporting JOYNER’s crimes to law enforcement. JOYNER pled guilty before U.S. District Judge Andrew L. Carter, Jr. on December 14, 2022. Judge Carter imposed today’s sentence.
U.S. Attorney Damian Williams said: “Correctional officers are entrusted to care for and maintain custody and control over inmates. Perry Joyner violated that trust repeatedly by soliciting and receiving bribes from inmates and by attempting to coordinate the assault of an inmate whom he believed was cooperating with the Government. This sentence should send a message to correctional officers: you will be held accountable when you violate your sworn duty to ensure the care, custody, and control of our nation’s inmate population.”
According to the Indictment, public court filings, and statements made in court proceedings:
From at least October 2019 through February 2020, JOYNER, a correctional officer at the MCC, received approximately $77,894 in bribe payments from MCC inmates or their associates in exchange for JOYNER smuggling to inmates drugs (including, but not limited to, oxycodone, alprazolam, Suboxone, marijuana, and K2), cellphones, cigarettes, and alcohol. MCC inmates then used, sold, or exchanged that contraband amongst themselves and resold it to other inmates.
In or about February 2020, JOYNER believed a particular inmate (“Inmate-1”), who had previously bribed JOYNER, was cooperating with the Government. In response, JOYNER requested other inmates slash or otherwise assault Inmate-1 as retribution and intimidation. Before any inmate followed through on JOYNER’s request, Inmate-1 was moved out of the MCC.
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In addition to today’s prison sentence, JOYNER, 30, of Orange, New Jersey, was sentenced to two years of supervised release ordered to forfeit $77,894.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation; the Department of Justice, Office of the Inspector General; Special Agents from the U.S. Attorney’s Office for the Southern District of New York; and the U.S. Customs and Border Protection in New York.
The prosecution of this case is being handled by the Office’s Public Corruption and Narcotics Units. Assistant U.S. Attorneys Aline R. Flodr, Jonathan E. Rebold, and Daniel H. Wolf are in charge of the prosecution, with the assistance of Paralegal Specialist Christopher de Grandpre.
Former Chief Executive Officer Sentenced to 16 Months in Federal Prison for Investment Fraud SchemeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 24, 2023, Joseph Nemeth (age: 53) of Germantown, Wisconsin, was sentenced to 16 months in federal prison for carrying out an investment scheme that defrauded over 20 victims and caused a loss of at least $2.2 million. Nemeth had earlier pleaded guilty to one count of wire fraud, in violation of 18 U.S.C. § 1343.
The information presented at sentencing showed that Nemeth partnered with another individual to form a real estate business, Wisconsin Home Buyers Network, LLC (WIHBN), of which Nemeth was the Chief Executive Officer. Between 2012 and 2018, the partners solicited and obtained from more than 20 investors approximately $2.8 million, promising little or no risk and monetary returns ranging from 12% to 36%. In return, investors received promissory notes detailing the investment terms. Some investors also received mortgages that purported to be for specific properties to be acquired and rehabilitated with the investor’s funds, although the partners failed to record all but a few of the mortgages.
Contrary to promises that the investor funds were secured by the assets of a successful and profitable business, WIHBN had business debt, delinquent tax obligations, and other financial issues that made the business unable to timely make payments on the promissory notes. Rather than being used for the promised investment purposes, investor funds were comingled with other funds and were used for Ponzi-type payments to existing investors, payroll for related businesses, debt reduction, personal draws by the partners, back taxes, and legal fees. When the partners were unable to pay as the promissory notes came due, they sought extensions, solicited additional funds from existing investors, and attempted to secure new investors. In the end, less than $400,000 of over $2.8 million in investor funds was returned to investors.
Several victims filed impact statements with the court prior to sentencing, and one victim made in-person remarks during the sentencing hearing. These victims explained to the court how the scheme caused them significant financial and emotional harm.
This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor, Employee Benefits Security Administration. Assistant U.S. Attorney John P. Scully and former Assistant U.S. Attorney Carol L. Kraft prosecuted the case.
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Final MS-13 Gang Member Sentenced for Role in Rival Gang Member’s MurderRead the Press Release
RICHMOND, Va. – A New Jersey man was sentenced yesterday to 40 years in prison for conspiring to participate in a murder in connection with his participation in La Mara Salvatrucha, a violent international gang commonly known as MS-13.
According to court documents, Jose Gimenez-Lobos, aka Terrible, 32, was a member and leader in an MS-13 clique in New Jersey. On the evening of Nov. 23, 2014, MS-13 members gathered at an apartment in Richmond, along with the victim, who was a member of the rival Sureño gang. Under MS-13 rules, members are not allowed to associate with rival gangs and are required to assault or murder rival gang members. When Gimenez-Lobos arrived at the apartment and realized a rival was present, Gimenez-Lobos encouraged the other MS-13 members to confront the victim based on his status as a Sureño gang member. The co-conspirators went into another room in the apartment, conferred, and decided to kill the victim. They assaulted the victim and took his knife, which Gimenez-Lobos used to stab the victim multiple times. Co-defendant Darwin Solorzano-Quintanilla then used a B-B gun to beat the victim brutally about the head. Co-defendant Francisco Lemus-Castillo used his own knife to stab the victim several more times, and the victim died from the stab wounds.
“This case is a clear example of the severe threat organized criminal gangs pose to our communities,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “The normalization of petty violence—such as killing another person because of their perceived rival affiliation—is illustrative of how dangerous these organizations can be.”
“Because of the dedicated efforts of the Justice Department and our law enforcement partners, Gimenez-Lobos and his fellow MS-13 gang members will no longer be able to terrorize their communities using fear, violence, and intimidation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This case demonstrates the Department’s commitment to dismantling this violent criminal organization and pursuing justice for its victims.”
"Those who choose to commit violent acts will be investigated and held accountable,” said Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office. “The FBI will continue to work closely with our law enforcement partners to vigorously investigate these cases as demonstrated by these sentences."
“Jose Gimenez-Lobos displayed his depravity by conspiring to stab a man to death in cold blood,” said Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, D.C. “The severity of his crime is reflected in the prison sentence he received today. HSI Washington, D.C. will continue to relentlessly pursue individuals or groups who perpetrate violence against the residents of our Washington, D.C. and Virginia communities.”
Solorzano-Quintanilla, age 29, of Chesterfield, Virginia, was sentenced to life imprisonment on November 23, 2021. Lemus-Castillo, age 31, of Chesterfield, Virginia, was sentence to life imprisonment on June 26, 2023.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Derek W. Gordon, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C, made the announcement after sentencing by U.S. District Judge David J. Novak.
This case was investigated by FBI Richmond’s RAVE Task Force with significant assistance from the City of Richmond Police Department.
Assistant U.S. Attorney Stephen W. Miller and Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section 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. 3:22-cr-45.
Final MS-13 Gang Member Sentenced for Role in Rival Gang Member’s MurderRead the Press Release
A New Jersey man was sentenced yesterday to 40 years in prison for conspiring to participate in a murder in connection with his involvement in La Mara Salvatrucha, a violent international gang commonly known as MS-13.
According to court documents, Jose Gimenez-Lobos, aka Terrible, 32, was a member and leader in an MS-13 clique in New Jersey. On the evening of Nov. 23, 2014, MS-13 members gathered at an apartment in Richmond, Virginia, along with the victim, who was a member of the rival Sureño gang. Under MS-13 rules, members are not allowed to associate with rival gangs and are required to assault or murder rival gang members. When Gimenez-Lobos arrived at the apartment and realized a rival was present, Gimenez-Lobos encouraged the other MS-13 members to confront the victim based on his status as a Sureño gang member. The co-conspirators went into another room in the apartment, conferred, and decided to kill the victim. They assaulted the victim and took his knife, which Gimenez-Lobos used to stab the victim multiple times. Co-defendant Darwin Solorzano-Quintanilla then used a B-B gun to beat the victim brutally about the head. Co-defendant Francisco Lemus-Castillo used his own knife to stab the victim several more times, and the victim died from the stab wounds.
“Because of the dedicated efforts of the Justice Department and our law enforcement partners, Gimenez-Lobos and his fellow MS-13 gang members will no longer be able to terrorize their communities using fear, violence, and intimidation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This case demonstrates the Department’s commitment to dismantling this violent criminal organization and pursuing justice for its victims.”
“This case is a clear example of the severe threat organized criminal gangs pose to our communities,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “The normalization of petty violence – such as killing another person because of their perceived rival affiliation – is illustrative of how dangerous these organizations can be.”
“This sentencing sends a clear message that the FBI is committed to ensuring violent crime investigations remain a priority,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI will continue to work with our partners to combat the violence these gangs cause and bring them to justice.”
“Those who choose to commit violent acts will be investigated and held accountable,” said Special Agent in Charge Stanley M. Meador of the FBI Richmond Field Office. “The FBI will continue to work closely with our law enforcement partners to vigorously investigate these cases as demonstrated by these sentences."
“Jose Gimenez-Lobos displayed his depravity by conspiring to stab a man to death in cold blood,” said Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, D.C. “The severity of his crime is reflected in the prison sentence he received today. HSI Washington, D.C. will continue to relentlessly pursue individuals or groups who perpetrate violence against the residents of our Washington, D.C. and Virginia communities.”
Solorzano-Quintanilla was sentenced to life in prison on Nov. 23, 2021. Lemus-Castillo was sentenced to life in prison on June 26, 2023.
The FBI, FBI Richmond Field Office’s RAVE Task Force, and Department of Homeland Security investigated the case, with significant assistance from the City of Richmond Police Department.
Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Stephen W. Miller for the Eastern District of Virginia prosecuted the case.
Final Defendant Sentenced in Multi-State Dogfighting RingRead the Press Release
The final defendant prosecuted as part of an extensive investigation into a dogfighting and drug distribution network was sentenced for his crimes in federal court.
Herman Tyrone Washington, 51, of Highland Springs, Virginia, was sentenced by U.S. District Judge Robert E. Payne for the Eastern District of Virginia to serve 46 months in prison to be followed by 3 years of supervised release. Washington pleaded guilty to conspiracy to participate in an animal fighting venture and possession of a pitbull-type dog for the purpose of having the animal participate in an animal fighting venture. As a condition of his supervised release, Washington is prohibited from owning or possessing dogs or their reproductive cells.
Washington was the last of seven individuals charged in this conspiracy. Collectively, the individuals were sentenced to a total of 534 months’ imprisonment, and each will serve a multi-year period of supervised release. Like Washington, the other defendants are prohibited from owing or possessing dogs during their supervised release.
“Dogfighting is not a sport, it’s a brutal crime against animals who rarely escape death unless liberated by law enforcement,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The lengthy sentences faced by Washington and others who conspired in this dogfighting ring illustrate that those who seek to profit from the suffering of animals face significant prison time.”
“The inhumane treatment of animals, especially ones bred to be companions for humans is not only strictly illegal, but deeply cruel,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “We have sought significant sentences in this case because the mistreatment of animals is a serious crime born of malicious intent. These dogs deserved better.”
“Dog-fighting is an extremely violent and abhorrent activity that profits from the abuse and neglect of animals. With today’s sentence, these criminals will be served justice for profiting from this abuse,” said Special Agent in Charge Stanley M. Meador of the Federal Bureau of Investigation’s (FBI) Richmond Field Office.
“This successful prosecution is the result of a multi-year investigation and a fantastic example of long term, effective cooperation between local, state and federal resources. Dog fighting is a serious, cruel offense that often is connected to additional narcotic and gun crimes. I’m proud of my team’s role and hard work that contributed to justice being served,” said Virginia Attorney General Jason Miyares.
According to information in the public record, in 2019, the Drug Enforcement Administration (DEA) began investigating several individuals in connection with a drug investigation. Through a court authorized electronic surveillance of co-conspirator’s Kenneth Otey’s phone, law enforcement officers analyzed over 400 conversations between the co-conspirators discussing their involvement and participation in dogfighting activities over two months. The ensuing investigation revealed that between December 2017 and August 2021, the conspirators organized contract matches (an agreed-upon fight negotiated by two parties for dogs of a specific weight and gender to take place on a set date, with an established purse and forfeit) and roll fights (a short fight between two dogs to test the dogs’ fighting abilities, usually for the purpose of sport and entertainment). They also transported dogs in Maryland, Virginia, North Carolina and South Carolina to participate in dog fights; bred and trained dogs to fight; and at least one of the conspirators killed losing dogs by drowning them in buckets of water. The conspirators used private messaging applications, including Meta and Telegram, to communicate with other people including to coordinate fights and post videos of fights and training techniques. They collectively sponsored an animal in or attended at least 100 dog fights during the conspiracy.
In November and December 2020, law enforcement executed six residential search warrants and seized 93 dogs that were being used in connection with the dogfighting criminal organization. The Court found the animal fighting venture to involve extraordinary cruelty and to be of exceptional scale.
The following co-conspirators have been convicted and sentenced in this prosecution:
Kenneth L. Otey, Jr., 48, of Richmond, Virginia, was sentenced to a total term of 300 months’ imprisonment to be followed by 5 years of supervised release, after pleading guilty to two drug offenses, a firearm offense, and conspiracy to participate in an animal fighting venture.
Connell Samuel Stukes, Sr., 49, of Rembert, South Carolina, was sentenced to a total term of 63 months’ imprisonment to be followed by 3 years of supervised release, after pleading guilty to conspiracy to participate in an animal fighting venture and possession of a pit bull-type dog for purpose of having the animal participate in an animal fighting venture.
Raymond Johnson, 42, of Richmond, Virginia, was sentenced to a total term of 37 months’ imprisonment to be followed by 3 years of supervised release, after pleading guilty to a firearm offense and conspiracy to participate in an animal fighting venture.
Jerome Donte Smith, 35, of Richmond, Virginia, was sentenced to a total term of 37 months’ imprisonment to be followed by 3 years of supervised release, after pleading guilty to conspiracy to participate in an animal fighting venture and sponsoring an animal in an animal fighting venture. At the time of his offense conduct, Smith was on supervised release in connection with a prior federal drug conviction.
Antonio Thomas Ruffin, 55, of Baltimore, Maryland, was sentenced to a total term of 36 months’ imprisonment to be followed by 3 years of supervised release, after pleading guilty to transporting a pit bull-type dog for purpose of having the animal participate in an animal fighting venture and possession of an animal for the purpose of having the animal participate in an animal fighting venture.
Royal Washington, 51, of Charles City, Virginia, was sentenced to a term of 15 months’ imprisonment to be followed by 3 years of supervised release, after pleading guilty to conspiracy to participate in an animal fighting venture.
The FBI, DEA, and the Office of the Attorney General for the Commonwealth of Virginia investigated the case. Special thanks go to United States Marshal Service, FBI – Baltimore Field Office, Virginia Animal Fighting Task Force, Richmond Animal Care and Control, the Henrico County Police Division, Sussex Virginia Sheriff’s Office, Baltimore Police Department, Baltimore Animal Services and South Carolina Law Enforcement Division.
Trial Attorneys Banumathi Rangarajan and William J. Shapiro of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Stephen E. Anthony of the Eastern District of Virginia prosecuted the case.
Final Defendant Sentenced in Multi-State Dogfighting RingRead the Press Release
RICHMOND, Va. – Yesterday the final defendant prosecuted as part of an extensive investigation into a dogfighting and drug distribution network was sentenced to 46 months in prison.
According to information in the public record, in 2019, the Drug Enforcement Administration (DEA) began investigating several individuals, including Herman Tyrone Washington, 51, of Highland Springs, in connection with a drug investigation. Through court-authorized electronic surveillance of co-conspirator Kenneth Otey’s phone, law enforcement officers analyzed over 400 conversations between the co-conspirators discussing their involvement and participation in dogfighting activities over two months. The ensuing investigation revealed that, between December 2017 and August 2021, the conspirators organized contract matches—an agreed-upon fight negotiated by two parties for dogs of a specific weight and gender to take place on a set date, with an established purse and forfeit— and roll fights—a short fight between two dogs to test the dogs’ fighting abilities, usually for the purpose of sport and entertainment. They also transported dogs in Maryland, Virginia, North Carolina, and South Carolina to participate in dog fights; bred and trained dogs to fight; and at least one of the conspirators killed losing dogs by drowning them in buckets of water. The conspirators used private messaging applications, including Meta and Telegram, to communicate with other people, including to coordinate fights and post videos of fights and training techniques. They collectively sponsored an animal in or attended at least 59 dog fights during the conspiracy.
In November and December 2020, law enforcement executed five residential search warrants and seized 93 dogs that were being used in connection with the dogfighting criminal organization. The Court found the animal fighting venture to involve extraordinary cruelty and to be of exceptional scale.
“The inhumane treatment of animals, especially ones bred to be companions for humans is not only strictly illegal, but deeply cruel,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “We have sought significant sentences in this case because the mistreatment of animals is a serious crime born of malicious intent. These dogs deserved better.”
“Dogfighting is not a sport, it’s a brutal crime against animals who rarely escape death unless liberated by law enforcement,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The lengthy sentences faced by Washington and others who conspired in this dogfighting ring illustrate that those who seek to profit from the suffering of animals face significant prison time.”
“Dog-fighting is an extremely violent and abhorrent activity that profits from the abuse and neglect of animals,” said Special Agent in Charge Stanley M. Meador of the FBI Richmond Field Office. “With today’s sentence, these criminals will be served justice for profiting from this abuse,”
“This successful prosecution is the result of a multi-year investigation and a fantastic example of long term, effective cooperation between local, state and federal resources,” said Virginia Attorney General Jason Miyares. “Dog fighting is a serious, cruel offense that often is connected to additional narcotic and gun crimes. I’m proud of my team’s role and hard work that contributed to justice being served.”
Washington pleaded guilty to conspiracy to participate in an animal fighting venture and possession of a pitbull-type dog for the purpose of having the animal participate in an animal fighting venture. As a condition of his supervised release, Washington is prohibited from owning or possessing dogs or their reproductive cells.
Washington was the last of seven individuals charged in this conspiracy. Those individuals were collectively sentenced to a total of 534 months imprisonment and each will serve a multi-year period of supervised release. Like Washington, the other defendants are prohibited from owing or possessing dogs during their supervised release.
The following co-conspirators have been convicted and sentenced in this prosecution:
Kenneth L. Otey, Jr., 48, of Richmond, was sentenced to a total term of 300 months imprisonment to be followed by 5 years of supervised release after pleading guilty to two drug offenses, a firearm offense, and conspiracy to participate in an animal fighting venture.
Connell Samuel Stukes, Sr., 49, of Rembert, South Carolina, was sentenced to a total term of 63 months imprisonment to be followed by 3 years of supervised release after pleading guilty to conspiracy to participate in an animal fighting venture and possession of a pit bull-type dog for purpose of having the animal participate in an animal fighting venture.
Raymond Johnson, 42, of Richmond, was sentenced to a total term of 37 months imprisonment to be followed by 3 years of supervised release after pleading guilty to a firearm offense and conspiracy to participate in an animal fighting venture.
Jerome Donte Smith, 35, of Richmond, was sentenced to a total term of 37 months imprisonment to be followed by 3 years of supervised release after pleading guilty to conspiracy to participate in an animal fighting venture and sponsoring an animal in an animal fighting venture. At the time of his offense conduct, Smith was on supervised release in connection with a prior federal drug conviction.
Antonio Thomas Ruffin, 55, of Baltimore, Maryland, was sentenced to a total term of 36 months imprisonment to be followed by 3 years of supervised release after pleading guilty to transporting a pit bull-type dog for purpose of having the animal participate in an animal fighting venture and possession of an animal for the purpose of having the animal participate in an animal fighting venture.
Royal Washington, 51, of Charles City, was sentenced to a term of 15 months imprisonment to be followed by 3 years of supervised release after pleading guilty to conspiracy to participate in an animal fighting venture.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Todd Kim, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division; Stanley M. Meador, Special Agent in Charge of the FBI Richmond Field Office; Jarod Forget, Special Agent in Charge for the DEA Washington Division; and Jason Miyares, Virginia Attorney General, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.
Special thanks to United States Marshal Service, FBI Baltimore Field Office, Virginia Animal Fighting Task Force, Richmond Animal Care and Control, the Henrico County Police Division, Sussex Virginia Sheriff’s Office, Baltimore Police Department, Baltimore Animal Services and South Carolina Law Enforcement Division.
Assistant U.S. Attorney Stephen E. Anthony and Trial Attorneys Banumathi Rangarajan and William J. Shapiro of the Justice Department’s Environmental Crimes Section prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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. 3:22-cr-132.
Federal Jury Finds Armed Career Criminal Guilty of Illegally Possessing a FirearmRead the Press Release
Jackson, TN – A federal jury delivered a guilty verdict recently in the case of a Hardin County man facing drug and firearm charges. Patrick Dillon Butler, 30, now faces a minimum of 20 years in federal prison. United States Attorney Kevin Ritz announced the conviction today.
After a 4-day jury trial in July 2023, Butler was convicted of possession of firearm or ammunition by a convicted felon, possession of a controlled substance with intent to distribute, and possessing a firearm in furtherance of a crime of violence or drug trafficking. There is no parole in the federal system.
According to information presented in court, on approximately December 11, 2021, deputies with the McNairy County Sheriff’s Department attempted to arrest Butler on an active arrest warrant. Butler refused to stop for the deputies and then led them on a high-speed chase that ended with him crashing into a deputy’s cruiser. Upon his capture, Butler was in possession of 2.26 grams of methamphetamine, digital scales, 14 unused baggies, $353 in cash, and had a .38 pistol in the glove box of the car he was driving.
In 2017 and 2018, Butler was found guilty of felony charges of aggravated assault and possession of .5 grams or more of methamphetamine with intent to deliver and is prohibited from possessing firearms. As a result of his felony convictions, Butler will face sentencing as an Armed Career Criminal under the Armed Career Criminal Act.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Adam Davis, who prosecuted this case, as well as law enforcement partners who investigated the case.
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Federal Grand Jury Indicts Louisville Man for Possession of a Firearm by a Convicted FelonRead the Press Release
Louisville, KY – A federal grand jury in Louisville returned an indictment on July 19, 2023, charging a Jefferson County man with possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
According to the indictment, Jonathan Rivera, 33, of Louisville, Kentucky, was charged with one count of possession of a firearm by a convicted felon. On July 10, 2023, Rivera possessed a Taurus GC3, 9-millimeter, semi-automatic handgun, and ammunition. Rivera was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses. On September 14, 2009, in Jefferson County Circuit Court, Rivera was convicted of two counts of burglary in the second degree.
The defendant made his initial court appearance yesterday before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, Rivera faces a maximum sentence of 15 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the ATF and the Louisville Metro Police Department.
Assistant U.S. Attorney Josh Porter is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fairbanks Men Indicted on Federal Charges for Wildlife Conspiracy, Wire Fraud, Money LaunderingRead the Press Release
FAIRBANKS, Alaska – A federal grand jury in Alaska returned an indictment on July 20 charging two Fairbanks men with eight federal charges linked to an illegal big-game guide-outfitter operation.
According to court documents, Jun “Harry” Liang, 59, and Brian Phelan, 51, of Fairbanks, conspired to provide guide-outfitter services for caribou and brown bear hunts in Fairbanks, while neither were licensed by the state of Alaska to do so. Liang collected around $11,000 in 2021 and $60,000 in 2022 for guided hunts.
Liang is charged with eight counts: one count Lacey Act conspiracy in violation of 18 U.S.C. §371; two counts wire fraud in violation of 18 U.S.C. §1343; one count Lacey Act false labelling in violation of 18 U.S.C. §3372(d)(2); two counts illegal alien in possession of a firearm in violation of 18 U.S.C. §922(g)(5)(A); and two counts money laundering, one in violation of 18 U.S.C. §1957(a) and another in violation of 18 U.S.C. §1956(a)(1)(A)(i). Phelan is charged with one count Lacey Act conspiracy in violation of 18 U.S.C. §371 and one count Lacey Act false labelling in violation of 18 U.S.C. §3372(d)(2).
Liang was arrested and made his initial court appearance on July 14 before U.S. Magistrate Judge Scott A. Oravec of the U.S. District Court for the District of Alaska. Phelan is scheduled to make his initial court appearance in August. If convicted, Liang faces a maximum of 20 years in prison, and Phelan faces a maximum of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The U.S. Fish and Wildlife Service, the U.S. Department of Homeland Security, Homeland Security Investigations and the IRS, with the assistance of the Alaska State Troopers, Wildlife Investigations Unit, are investigating the case.
Assistant U.S. Attorneys Steven Skrocki and Carly Vosacek are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Defendant Pleads Guilty to For-Profit Visa Fraud and Immigrant Smuggling SchemeRead the Press Release
This afternoon, at the federal courthouse in Brooklyn, Haiyan Liao pleaded guilty to visa fraud and money laundering charges for her role in a multi-year scheme to illegally bring Chinese nationals into the United States for financial gain. Liao was charged in January 2021. Today’s proceeding was held before United States Magistrate Judge Cheryl L. Pollak.
U.S. Attorney Breon Peace of the Eastern District of New York; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; and Principal Deputy Assistant Secretary and Acting Deputy Assistant Director of Investigations Gregory Batman of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.
“Liao was paid thousands of dollars to help lie to the federal government to bring individuals, including unaccompanied minors, into the United States for her own selfish gain,” stated United States Attorney Peace. “This Office stands committed to upholding the rule of law and protecting the integrity of our immigration process.”
“The Criminal Division is committed to prosecuting human smugglers who undermine the rule of law by trying to circumvent our lawful immigration system,” stated Assistant Attorney General Polite. “As Liao’s conviction demonstrates, we will continue to hold accountable people who take advantage of vulnerable populations for personal greed.”
“The Diplomatic Security Service’s global presence enables our agency to serve as a liaison between U.S. and foreign law enforcement counterparts, assisting both in their efforts to stop human trafficking,” stated DSS Acting Deputy Assistant Director of Investigations Batman. “Today’s guilty plea demonstrates how DSS’ placement around the world can stem the tide of human trafficking and target the criminals who prey on these victims.”According to court documents, Liao, a naturalized U.S. citizen and native of China, engaged in a scheme with others to assist noncitizens from China to illegally enter the United States. Liao fraudulently obtained visitor visas for those noncitizens by submitting applications containing false statements to the U.S. Consulate in Guangzhou, China. For the noncitizens whose applications were approved – including four minors – Liao facilitated their travel to the United States, including accompanying them on commercial flights to John F. Kennedy International Airport. The noncitizens and their families paid thousands of dollars to get to the United States. As a result of this scheme, Liao reaped at least $98,673.72 in illicit proceeds through wire transmissions from China to the United States.
Liao pleaded guilty to conspiracy to unlawfully bring unauthorized immigrants into the United States for financial gain, which carries a maximum sentence of five years imprisonment and money laundering conspiracy, which carries a maximum sentence of 20 years imprisonment.
The DSS Criminal Fraud Investigations Unit Branch investigated the case.
Assistant U.S. Attorney Nomi Berenson for the Eastern District of New York and Rami Badawy, Acting Deputy Chief of the Justice Department’s Human Rights and Special Prosecutions Section are prosecuting the case.
The Defendant:
HAIYAN LIAO
Age: 46
Las Vegas, NevadaE.D.N.Y. Docket No. 20-CR-500 (DG)
Colorado Man Sentenced to Prison for “We Build the Wall” Online Fundraising Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that TIMOTHY SHEA was sentenced today by U.S. District Judge Analisa Torres to 63 months in prison for his role in carrying out a scheme to defraud hundreds of thousands of donors in connection with an online crowdfunding campaign known as “We Build The Wall” by soliciting donations using false statements and then stealing the resulting donations, as well as laundering the proceeds of the fraud scheme and attempting to obstruct the federal criminal investigation of the scheme.
U.S. Attorney Damian Williams said: “Timothy Shea abused the trust of donors to ‘We Build the Wall,’ stole hundreds of thousands of dollars in donations to line his own pockets, and attempted to obstruct the federal investigation of his criminal conduct. The defendant has now been held accountable and faces prison time for his crimes.”
According to court filings and evidence introduced during court proceedings:
Starting in approximately December 2018, TIMOTHY SHEA, his co-defendants BRIAN KOLFAGE and ANDREW BADOLATO, and others orchestrated a scheme to defraud hundreds of thousands of donors, including donors in the Southern District of New York, in connection with an online crowdfunding campaign ultimately known as “We Build The Wall” that raised more than $25,000,000 to build a wall along the southern border of the United States. In particular, to induce donors to donate to the campaign, KOLFAGE repeatedly and falsely assured the public that he would “not take a penny in salary or compensation” and that “100% of the funds raised…will be used in the execution of our mission and purpose.”
Those representations were lies. In truth, KOLFAGE, BADOLATO, SHEA, and others received hundreds of thousands of dollars in donor funds from We Build the Wall, which they each used in a manner inconsistent with the organization’s public representations. For example, KOLFAGE covertly took for his personal use more than $350,000 in funds that donors had given to We Build the Wall. To conceal the payments to KOLFAGE from We Build the Wall, KOLFAGE, BADOLATO, SHEA, and others devised a scheme to route those payments through entities and bank accounts that they controlled. They took various steps to obscure or conceal these payments, including by using fake invoices and sham contracts — conduct for which SHEA was convicted at trial of obstruction of justice.
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SHEA, 52, of Castle Rock, Colorado, was convicted after trial of conspiracy to commit wire fraud, conspiracy to commit money laundering, and obstruction of justice. In addition to the prison term, SHEA was sentenced to three years of supervised release and ordered to forfeit $1,801,707 and pay restitution in the amount of $1,801,707.
KOLFAGE, 41, of Miramar Beach, Florida, and BADOLATO, 58, of Cocoa, Florida, each pled guilty to one count of conspiracy to commit wire fraud. KOLFAGE also pled guilty to tax and wire fraud charges originally filed by the U.S. Attorney’s Office for the Northern District of Florida. KOLFAGE was sentenced to 51 months in prison, and BADOLATO was sentenced to 36 months in prison.
Mr. Williams praised the outstanding investigative work of the U.S. Postal Inspection Service and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Alison G. Moe, Nicolas Roos, Robert B. Sobelman, and Derek Wikstrom are in charge of the prosecution, with the assistance of Paralegal Specialists Christopher de Grandpre and Andrea Gieseman.