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18 July 2023
Durham, N.C. Man Is Sentenced to Prison for Operating an Unlicensed Cryptocurrency Business and Related Tax ChargesRead the Press Release
CHARLOTTE, N.C. – Jayton Gill, 35, of Durham, N.C., was sentenced to 21 months in prison followed by a year of supervised release today for operating an unlicensed money transmitting business and willful failure to file a tax return, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Gill was also ordered to pay a forfeiture money judgement in the amount of $475,000.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, and Karen Wingerd, Acting Special Agent in Charge of IRS Criminal Investigation (IRS CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, from 2015 to 2021, Gill operated an unlicensed money transmitting business involving the exchange of millions of dollars of cash and other monetary instruments for cryptocurrencies such as Bitcoin and Monero. During the relevant time, Gill conducted thousands of transactions involving thousands of Bitcoins. As Gill previously admitted in court, he advertised his unlicensed money transmitting business on various public websites and made claims on one such website that he had conducted more than 4,200 transactions with 2,700 different parties. Gill also conducted unlicensed money transactions in person and via the U.S. Postal Service.
Court records show that Gill also failed to file U.S. Individual Income Tax Returns for tax years 2015 through 2019, despite earning significant income from his unlicensed money transmitting business and from investing in cryptocurrency.
On July 12, 2022, Gill pleaded guilty to operating an unlicensed money transmitting business and failure to file a tax return. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
The FBI and IRS CI handled the investigation. Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Dothan Drug Trafficker Sentenced to 15 Years in Federal PrisonRead the Press Release
TALLAHASSEE, FLORIDA – Curtis Tyron Vickers, 35, of Dothan, Alabama was sentenced to 15 years in federal prison after previously pleading guilty to possession with intent to distribute approximately 1.8 pounds of methamphetamine. Jason R. Coody, United States Attorney for the Northern District of Florida announced the sentence.
“Our local, state, and federal law enforcement partners work tirelessly to keep us safe and serve a critical role in our efforts to remove addictive and deadly controlled substances from our communities,” said U.S. Attorney Coody. “We will continue to support their efforts to investigate and vigorously prosecute criminals bringing drugs into North Florida.”
As part of a longer-term investigation, Drug Enforcement Administration (DEA) and the North Star Multijurisdictional Drug Task Force (NSMDTF) learned that Vickers was transporting approximately 1.8 pounds of methamphetamine through Calhoun County for distribution. Working in conjunction with DEA, and the NSMDTF, the Florida Highway Patrol conducted a traffic stop on Vickers. A Calhoun County Sheriff’s Office Deputy deployed a canine who alerted to the presence of narcotics inside the vehicle. In addition to the methamphetamine, officers also located small baggies containing heroin and fentanyl, and a small amount of crack cocaine.
Vickers qualified for enhanced sentencing as a Career Offender due to prior convictions for unlawful possession with intent to distribute a controlled substance (methamphetamine) and sale or delivery of controlled substance. Vickers was on probation at the time of the offense.
“One of DEA’s top priorities is getting these highly addictive and incredibly dangerous drugs, like methamphetamine, off our streets and out of our communities,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “The success of this investigation highlights the Miami Field Division’s continued commitment to working with our local, state, and federal law enforcement partners to keep our communities safe and healthy.”
Vickers’ prison sentenced will be followed by 5 years of supervised release.
This conviction was the result of the collaborative efforts of numerous local, state, and federal agencies, including the North Star Multijurisdictional Drug Task Force, the Calhoun County Sheriff’s Office, the Florida Highway Patrol, and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney James A. McCain.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Distributor of Cocaine in Lafayette Area Receives Federal Prison SentenceRead the Press Release
LAFAYETTE, La. – Joshua Lewis, 50, of Basile, Louisiana, has been sentenced for possessing cocaine and cocaine base with the intent to distribute, announced United States Attorney Brandon B. Brown. United States District Judge Robert R. Summerhays sentenced Lewis to 60 months in prison, followed by 3 years of supervised release.
Evidence introduced in court revealed that beginning in August 2019 and continuing through January 2021, Lewis conspired with Shawn White, Courtney Smith, Shane Malveaux, Kevin Hardy, and others to distribute narcotics, including cocaine and cocaine base in south Louisiana. During their investigation into this drug trafficking organization, agents with the U.S. Drug Enforcement Administration (DEA) obtained evidence through the use of controlled purchases of narcotics with confidential sources, as well as the interception of wire communications between the defendants in this organization. On or about January 7, 2021, agents obtained intercepted communications between Lewis and White which revealed that they worked out a deal for Lewis to purchase powder cocaine from White. Lewis and his co-defendants were charged in an indictment on February 10, 2021. On March 17, 2023, Lewis pleaded guilty and admitted that he was in an agreement with his co-conspirators to possess with the intent to distribute cocaine and cocaine base.
Three other defendants were charged in this case and have been sentenced as follows:
Shane Christopher Malveaux, 51, of Eunice, Louisiana, was sentenced to 100 months (8 years, 4 months) in prison, followed by 3 years of supervised release, for conspiring with others to distribute and possess with the intent to distribute cocaine and cocaine base.
Courtney Nacol Smith, 48, of Katy, Texas, to 60 months in prison, followed by 5 years of supervised release, for possession with intent to distribute cocaine and cocaine base.
Shawn Dwayne White, 46, of Eunice, was sentenced to 60 months in prison, followed by 4 years of supervised release, for conspiring with others to distribute and possess with the intent to distribute cocaine and cocaine base.
The case was investigated by the DEA and Department of Homeland Security-Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Daniel J. Vermaelen.
This effort is part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Derry Man Sentenced to 20 Years in Prison for Production, Distribution and Possession of Child Sex Abuse MaterialRead the Press Release
PITTSBURGH - A former resident of Derry, Pennsylvania was sentenced in federal court to a total term of 240 months’ imprisonment (20 years) on his conviction for four counts of production and attempted production of material depicting the sexual exploitation of a minor; one count of distribution and attempted distribution of material depicting the sexual exploitation of a minor; and one count of possession of material depicting the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Michael Wilson, age 44. Judge Ranjan also ordered a period of 15 years’ supervised release following Wilson’s incarceration sentence and ordered that Wilson pay restitution totaling $6,000. Judge Ranjan further ordered Wilson to pay a $600 criminal monetary penalty pursuant to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018.
According to information presented to the court, on multiple occasions during 2019 through May 15, 2021, Wilson surreptitiously recorded five different minors engaged in sexually explicit conduct with a video recording device that he was able to access from his cellular telephone. Further, the court was advised that from September, 2019 to October, 2019, Wilson communicated with another individual through online chat applications about the sexual abuse of minors and distributed to this other individual some of the images that he had secretly recorded of one minor engaged in sexually explicit conduct. Wilson also possessed several other images of child sexual abuse material, including one image of a prepubescent minor.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations – Pittsburgh, the Pennsylvania State Police, and the Derry Police Department conducted the investigation that led to the prosecution of Wilson.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Derry Man Charged in Connection with Importing, Manufacturing, and Distributing SteroidsRead the Press Release
CONCORD – A Derry man has been charged in connection with importing, manufacturing, and distributing steroids, U.S. Attorney Jane E. Young announces.
Ralph Cardarelli, 44, was charged with distribution or possession with intent to distribute controlled substances and causing a drug to become misbranded after shipment in interstate commerce. Cardarelli will make an initial appearance in federal court on July 17, 2023, at 2:00 p.m.
According to the charging documents, during the execution of a search warrant at Cardarelli’s residence on March 23, 2023, federal investigations discovered over 4800 vials and bottles of suspected controlled substances and prescription drugs, including: Nandrolone Phenylpropionate; Trenbolone Acetate; Dromostanolone Propionate; Boldenone Undecylenate; Testosterone Propionate; Trenbolone Enanthate; Nandrolone Decanoate; Testosterone Enanthate; and Testosterone Cypionate. These drugs are commonly known as steroids. Evidence was also discovered through the search warrant that Cardarelli was importing these drugs, manufacturing, and packaging them in his residence, and dispensing the drugs without requiring a prescription.
The charge of distribution or possession with intent to distribute controlled substances provides for a sentence of up to 10 years in prison, at least 2 years of supervised release, and a fine of up to $500,000.00. The charge of causing a drug to become misbranded after shipment in interstate commerce provides for a sentence of up to 1 year in prison and a fine of up to $1,000.00. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Food and Drug Administration – Office of Criminal Investigations led the investigation. Valuable assistance was provided by Customs and Border Protection, Homeland Security Investigations, and the Derry Police Department. Assistant U.S. Attorney Geoffrey Ward is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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D.C. Man Indicted in a Six Count Federal Indictment After Deadly Carjacking SpreeRead the Press Release
WASHINGTON – Daeyon Ross, 22, of the District of Columbia, is charged by indictment alleging six criminal counts related to a carjacking spree, on July 2, 2023, that left one Maryland resident and two dogs dead. The incident, which occurred over a span of 20-30 minutes, began in Prince George’s County, Maryland, and ended in a shootout with police officers in Northeast Washington, D.C.
Ross was indicted by a grand jury in the District Court for the District of Columbia on charges of: assault with intent to kill while armed; carjacking; assault on a police officer while armed; assault with a dangerous weapon; using, carrying, possessing, and discharging a firearm during a crime of violence; and unlawful possession of a firearm by a person previously convicted of a crime punishable by a term of imprisonment of more than one year.
According to the government’s evidence, the Metropolitan Police Department’s Air Support Unit (Falcon) spotted Ross driving recklessly at high speeds from Washington D.C. into Prince George’s County, Maryland. While in Prince George’s County, Ross carjacked multiple cars while armed with a stolen handgun equipped with a large capacity magazine. In the process, Ross shot to death a 56-year old off-duty Metro bus driver and two dogs.
Ross proceeded to re-enter Washington D.C., where he crashed one of the carjacked vehicles in a residential neighborhood in Northeast D.C. Ross then used his handgun to carjack yet another vehicle from a D.C. resident who was returning from church. Ross attempted to flee again before crashing into Maryland law enforcement officers that had continued to pursue him from Maryland into D.C. Ross then opened fire on law enforcement. Officers returned fire and Ross surrendered shortly thereafter. Neither Ross nor the officers were harmed in the shootout.
The case is being prosecuted by Assistant U.S. Attorneys Justin F. Song and Alec Levy of the United States Attorney’s Office for the District of Columbia.
The case is being investigated by the FBI Washington Field Office's Violent Crime Task Force, the Metropolitan Police Department, and the Prince George's County Police Department. It is brought with the assistance of and in coordination with the Prince George's County State's Attorney's Office.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Court Finds State of Florida Violates the Americans with Disabilities Act by Institutionalizing Children with DisabilitiesRead the Press Release
MIAMI – The U.S. District Court for the Southern District of Florida ruled on Friday that the State of Florida violates the rights of children with complex medical needs by keeping some children unnecessarily institutionalized in nursing facilities, while placing other children at serious risk of unnecessary institutionalization.
Following a two-week bench trial in May, the court found that the children in nursing facilities are capable of living in the community. Based on the testimony of experts and family members during the trial, the court also found that parents and guardians of institutionalized children overwhelmingly want their children to live at home, but that they have not been given meaningful options other than institutional placement. The court’s decision, coming after nearly a decade of litigation, marks a major turning point in the treatment of children with disabilities in Florida and vindicates their right to community integration.
The court heard from many families who struggled desperately to keep their children at home despite a lack of services, and others who had no choice but to place their children in nursing homes because they could not get the help they needed. For example, parent Heather Patten testified about having to place her son in a nursing home when he was a toddler, telling the court, “I was scared, and I didn’t feel like I had a choice. I felt like there was no choice.” Another parent, Martin Carrizales, testified that for his disabled teenage stepson, “The help that they would give is that they would put him in a home but I would not be able to take care of him, and that is not what I wanted for him.”
“This important ruling will help Florida families of disabled children keep and care for their children at home by requiring increased access to medical support and services,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We look forward to seeing the systematic changes in Florida needed to prevent the unnecessary institutionalization of children with complex medical needs.”
“This is a momentous decision impacting hundreds of vulnerable children and their families,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The court’s ruling sends a clear message that children with complex medical needs deserve to grow up with the love and support of their families and should not be confined to nursing facilities where they are stripped apart from their communities. The Civil Rights Division is strongly committed to ensuring that people with disabilities are not isolated from society but are fully integrated into their communities.”
The department’s lawsuit challenged the State of Florida’s policies that violated the Americans with Disabilities Act (ADA) and resulted in children with disabilities living and growing up in nursing facilities, separated from their families, friends and community. To remedy its violation, Florida must take steps to ensure that children with complex medical needs can access the services they need to live in their own homes and communities. Florida must also develop transition plans for institutionalized children and engage families to ensure that they can make informed choices about where their children live.
Approximately 140 children with disabilities are currently housed in three pediatric nursing facilities across Florida, and many more are at risk of entering these institutions due to a shortfall of services, including home nursing care. These children live with a range of medical conditions and disabilities, and many are dependent on medical technology such as ventilators. Under the ADA and the Supreme Court’s landmark decision in Olmstead v. L.C. – which was decided over 24 years ago – Florida is required to serve children with disabilities in the most integrated setting appropriate to their needs, as long as the children or their guardians do not oppose community integration.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Court Finds State of Florida Violates the Americans with Disabilities Act by Institutionalizing Children with DisabilitiesRead the Press Release
The U.S. District Court for the Southern District of Florida ruled on Friday that the State of Florida violates the rights of children with complex medical needs by keeping some children unnecessarily institutionalized in nursing facilities, while placing other children at serious risk of unnecessary institutionalization.
Following a two-week bench trial in May, the court found that the children in nursing facilities are capable of living in the community. Based on the testimony of experts and family members during the trial, the court also found that parents and guardians of institutionalized children overwhelmingly want their children to live at home, but that they have not been given meaningful options other than institutional placement. The court’s decision, coming after nearly a decade of litigation, marks a major turning point in the treatment of children with disabilities in Florida and vindicates their right to community integration.
The court heard from many families who struggled desperately to keep their children at home despite a lack of services, and others who had no choice but to place their children in nursing homes because they could not get the help they needed. For example, parent Heather Patten testified about having to place her son in a nursing home when he was a toddler, telling the court, “I was scared, and I didn’t feel like I had a choice. I felt like there was no choice.” Another parent, Martin Carrizales, testified that for his disabled teenage stepson, “The help that they would give is that they would put him in a home but I would not be able to take care of him, and that is not what I wanted for him.”
“This is a momentous decision impacting hundreds of vulnerable children and their families,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The court’s ruling sends a clear message that children with complex medical needs deserve to grow up with the love and support of their families and should not be confined to nursing facilities where they are stripped apart from their communities. The Civil Rights Division is strongly committed to ensuring that people with disabilities are not isolated from society but are fully integrated into their communities.”
“This important ruling will help Florida families of disabled children keep and care for their children at home by requiring increased access to medical support and services,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We look forward to seeing the systematic changes in Florida needed to prevent the unnecessary institutionalization of children with complex medical needs.”
The department’s lawsuit challenged the State of Florida’s policies that violated the Americans with Disabilities Act (ADA) and resulted in children with disabilities living and growing up in nursing facilities, separated from their families, friends and community. To remedy its violation, Florida must take steps to ensure that children with complex medical needs can access the services they need to live in their own homes and communities. Florida must also develop transition plans for institutionalized children and engage families to ensure that they can make informed choices about where their children live.
Approximately 140 children with disabilities are currently housed in three pediatric nursing facilities across Florida, and many more are at risk of entering these institutions due to a shortfall of services, including home nursing care. These children live with a range of medical conditions and disabilities, and many are dependent on medical technology such as ventilators. Under the ADA and the Supreme Court’s landmark decision in Olmstead v. L.C. – which was decided over 24 years ago – Florida is required to serve children with disabilities in the most integrated setting appropriate to their needs, as long as the children or their guardians do not oppose community integration.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint.
Convicted Felon Sentenced to Statutory Max for Illegally Possessing Guns in Project Safe Neighborhoods CaseRead the Press Release
COLUMBUS, Ga. – A Phenix City, Alabama, man with an extensive criminal history was sentenced to serve ten years in prison—the statutory maximum prison sentence allowed under federal law—for illegally possessing two pistols he tossed into the backyard of a home while attempting to escape arrest.
Raymond Richmond, 37, of Phenix City, Alabama, was sentenced to serve 120 months in prison to be followed by three years of supervised release by U.S. District Judge Clay Land today after he pleaded guilty to illegal possession of a firearm by a convicted felon on April 19. There is no parole in the federal system.
“Repeat criminal offenders are facing federal prosecution when they are caught with guns in Columbus,” said U.S. Attorney Peter D. Leary. “It’s going to take many different approaches to effectively reduce violent crime; holding violent repeat offenders accountable for illegally possessing firearms is just one part of the overall strategy. We are thankful for the continued collaboration between law enforcement and community partners working to make Columbus safer.”
“Taking illegal guns off the streets is critical in keeping communities safe. We will continue to work with our law enforcement partners to investigate these types of crimes,” said GBI Director Mike Register.
“This case is another reminder that ATF remains on the frontline of preventing violent crimes along with our law enforcement partners,” said ATF Assistant Special Agent in Charge Beau Kolodka. “We will not allow residents to suffer criminal behavior which threatens the safety of innocent civilians and law enforcement officers.”
“The message must be resoundingly clear for convicted felons in possession of firearms in Muscogee County: We will not accept this behavior at any level,” said Muscogee County Sheriff Greg Countryman. “They must know that we will pursue them and seek to fully prosecute their crimes. The Muscogee County Sheriff’s Office stands committed to staying the course to fight for safer neighborhoods.”
According to court documents, on Dec. 15, 2020, a deputy with the Muscogee County Sheriff’s Office (MCSO), was in routine patrol in Columbus and observed a car without a brake light and attempted to initiate a traffic stop. The vehicle continued at a low rate of speed for several blocks but failed to stop. Near the intersection of 17th Street and Preston Drive—a residential section of the city—the vehicle slowed down and Richmond exited the front passenger seat with a black book bag and took off running.
A brief foot chase ensued, during which Richmond tossed his book bag in the backyard of a residence. Richmond was apprehended in the yard and the bookbag was located next to him in the shrubs. Inside, deputies found a .40 caliber Glock pistol with 26 rounds of ammunition, a .380 Kel-Tec pistol with five rounds of ammunition, along with crack, cocaine, pills and marijuana.
At the time of this incident, Richmond was wanted on several outstanding warrants. He has several prior felony convictions in Muscogee County, Georgia, Superior Court, including obstruction of a law enforcement officer, interference with government property and theft by taking. It is illegal for a convicted felon to possess a firearm.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Muscogee Co. Sheriff’s Office, GBI and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Crawford Seals prosecuted the case for the government.
Cincinnati man pleads guilty to illegally accessing email, social media accounts of hundreds of women to obtain sexually explicit photosRead the Press Release
CINCINNATI – A Cincinnati man pleaded guilty in U.S. District Court today to accessing the email and social media accounts of hundreds of women to search for sexually explicit photos of them.
Dwayne Curry, 34, admitted he identified women through the internet, television and in person and then intentionally sought to access their email and Snapchat accounts.
Curry used cryptocurrency to purchase passwords through various dark websites that sell stolen user account information.
The defendant then accessed the women’s Snapchat accounts to view and save their private photos.
In total, Curry unlawfully accessed at least 48 women’s Snapchat accounts and more than 300 email accounts. Some of the identified victims included a woman he met in person in Cincinnati, and two women he saw on television. The women resided in Tennessee and Pennsylvania.
Curry was charged by bill of information in May 2023.
Unauthorized access of a computer is a federal crime punishable by up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the guilty plea entered today before Senior U.S. District Judge Michael R. Barrett. Assistant United States Attorney Kyle J. Healey is representing the United States in this case, which was investigated by FBI Knoxville and Cincinnati, the Knoxville (TN) Cyber Task Force and the University of Tennessee Police Department.
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Charlotte Tax Preparer Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – A Charlotte tax preparer was sentenced to 20 months in prison today for preparing and filing false tax returns, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Jessica Earlene Truesdale, 49, of Charlotte, was also ordered to serve one year of supervised release after completing her prison term and to pay $1,177,615 in restitution.
Karen Wingerd, Acting Special Agent in Charge of IRS Criminal Investigation (IRS CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
According to court documents and statements made in court, Truesdale owned and operated Queen City Financial Company, LLC (Queen City Financial), a tax preparation business with three locations in the Charlotte area. Between 2014 and 2017, Truesdale prepared and filed fraudulent tax returns on behalf of her clients and earned at least $1 million in return preparation fees, which were paid directly from her clients’ refunds. Court documents show that Truesdale used several methods to falsify clients’ tax returns, including claiming false filing status and exemptions, American Opportunity credits, education credits, and earned income tax credits, among others. As a result of the false information contained in the fraudulent returns, Truesdale’s clients reduced their tax liabilities and received fraudulently inflated tax refunds. To further conceal the fraud, Truesdale regularly failed to review the completed tax returns with clients, except to inform them the amounts of their refunds. As a result, some clients received correspondence from the IRS or the State of North Carolina questioning items on their tax returns.
On February 17, 2022, Truesdale pleaded guilty to aiding and abetting in the preparation of a false tax return. Truesdale will be ordered to report the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked IRS CI for their investigation of the case.
Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Charlotte Drug Trafficker Is Sentenced to More Than 24 Years in Federal PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Herbert Eugene Brandon, 55, of Charlotte, to 292 months in prison for drug trafficking conspiracy, drug distribution and money laundering conspiracy, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also imposed five years of supervised release following incarceration.
According to filed documents and information introduced at the sentencing hearing, in 2019, law enforcement identified Brandon as a member of a Drug Trafficking Organization (DTO) associated with the CJNG Mexican drug cartel and responsible for distributing bulk quantities of methamphetamine and heroin throughout Western North Carolina, including in Mecklenburg and Gaston Counties. Over the course of the investigation, law enforcement conducted surveillance and controlled drug buys, during which they observed Brandon engage in several drug transactions with a Confidential Informant and with other local drug dealers. In addition to trafficking narcotics, Brandon engaged in money laundering activity, by sending drug proceeds via wire transfers to Mexico-based DTO members in amounts varying from $980 to $1,500 per transaction.
In October 2021, Brandon pleaded guilty to drug trafficking conspiracy and money laundering conspiracy, and distribution and possession with intent to distribute heroin and methamphetamine.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, Homeland Security Investigations, and the Gaston County Police Department for their coordination and investigation of the case.
Assistant United States Attorney Regina Pack, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Cass County Man Sentenced for Drug Trafficking Violations in East TexasRead the Press Release
MARSHALL, Texas – An Avinger man has been sentenced to more than 24 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Joshua Adam Tolar, 41, pleaded guilty on Jan. 26, 2023, to conspiracy to possess with intent to distribute and distribution of methamphetamine and was sentenced to 292 months in federal prison by Chief U.S. District Judge J. Rodney Gilstrap on July 17, 2023.
According to information presented in court, Tolar was part of a drug trafficking organization responsible for distributing large quantities of methamphetamine in the Marshall area. On Jan. 12, 2021, law enforcement officers intercepted a package of almost 3 kilograms of methamphetamine that was shipped through the postal service and intended for Tolar. On May 8, 2021, Tolar was stopped by law enforcement officers and found in possession of 505 grams of methamphetamine and 110 grams of marijuana. As the importer and distributor of methamphetamine, Tolar was held responsible for conspiring to possess with intent to distribute and distributing multiple kilos of methamphetamine. Tolar was indicted by a federal grand jury on June 15, 2022, and charged with drug trafficking violations.
This case was investigated by U.S. Department of Homeland Security (Homeland Security Investigations), Texas Department of Public Safety-Criminal Investigations Division, Harrison County Sheriff’s Office, and the U.S. Customs and Border Patrol. The case was prosecuted by Assistant U.S. Attorney Ryan Locker.
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Canonsburg Man Indicted for Violating the Bald and Golden Eagle Protection ActRead the Press Release
PITTSBURGH – A resident of Canonsburg, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh for violating the Bald and Golden Eagle Protection Act, United States Attorney Eric G. Olshan and Washington County District Attorney Jason Walsh announced today.
The one-count Indictment named Rodney Thomas, 50, as the sole defendant. According to the Indictment, Thomas shot and killed a mature bald eagle with an air rifle on or about May 12, 2023, in Mt. Pleasant, Pennsylvania.
“This Office remains committed to investigating and prosecuting environmental and wildlife offenses under federal law, including the unlawful killing of bald eagles—the United States’ national bird since 1782,” said U.S. Attorney Eric G. Olshan. “This prosecution is the result of strong coordination with our state and local partners at the Washington County District Attorney’s Office, the Pennsylvania Game Commission, and the Mt. Pleasant Township Police Department.”
“The bald eagle is our national bird and is widely known as being symbolic of our independence as a country,” said Washington County District Attorney Jason Walsh. “A symbolic species such as the bald eagle deserves our protection. My office, along with the U.S. Attorney’s Office, the Pennsylvania Game Commission, and the Mt. Pleasant Police Department worked diligently coordinating with each other to identify and charge the individual responsible and bring him to justice.”
The law provides for a maximum total sentence of up to one year in prison, a fine of up to $5,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government.
The United States Fish and Wildlife Service, along with investigators from the Mt. Pleasant Township Police Department, the Washington County District Attorney’s Office, and the Pennsylvania State Game Commission, conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Calloway County Woman Sentenced to 18 Months in Federal Prison for Illegal Transportation of Stolen FirearmRead the Press Release
Paducah, KY – A Calloway County, Kentucky woman was sentenced today to 18 months in prison for illegally transporting a stolen firearm.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division made the announcement.
According to court documents, Denise Collins, 35, illegally transported and received a firearm stolen outside of the state of Kentucky on April 25, 2022. The firearm, a Sig Sauer, model P365 XL, .9-millimeter semi-automatic pistol, was a stolen firearm transported from Tennessee to Kentucky by Collins, aided and abetted by Gary Rowland. The firearm was ultimately used by Rowland to shoot and kill Calloway County Chief Deputy Sheriff Jody Cash on May 16, 2022.
Collins was sentenced to 18 months in prison followed by 3 years of supervised release. There is no parole in the federal system.
“The tragic murder of Chief Deputy Cash serves as a stark reminder for all Kentuckians of the sacrifices made daily by those who wear the badge and keep our communities safe,” said U.S. Attorney Bennett. “Along with our federal, state, and local law enforcement partners, we will continue to strategically investigate and aggressively prosecute those who violate federal firearms laws so that the Western District is safer for all who live and work here.”
“Kentucky lost a hero, a man who dedicated his life to serving the Commonwealth, when Calloway County Chief Deputy Jody Cash was murdered,” said ATF Special Agent in Charge Morrow. “This is a terrible reminder of what can happen when a firearm ends up in the hands of someone prohibited from possessing them. ATF is committed to combatting firearms trafficking and the violence it can cause in our communities. I commend the ATF case agents, the prosecution team and our law enforcement partners including Kentucky State Police, Murray Police, McCracken County Sheriff’s Office, and the Paris Police Department in Tennessee, who worked together to bring some sense of justice to Deputy Cash and his family.”
This case was investigated by the ATF with the assistance from the Kentucky State Police, the Murray Police Department, the McCracken County Sheriff’s Office, and the Paris Tennessee Police Department.
Assistant U.S. Attorney Josh Porter prosecuted 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.
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CEO of Cryptocurrency and Forex Trading Platform Sentenced to Nine Years in Prison for $240 Million Scheme to Defraud InvestorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that EDDY ALEXANDRE was sentenced by U.S. District Judge John P. Cronan to nine years in prison for engaging in commodities fraud. ALEXANDRE was the leader of a purported cryptocurrency and foreign exchange (“forex”) trading platform called EminiFX, and he defrauded over 25,000 investors in the EminiFX trading platform of more than $248 million.
U.S. Attorney Damian Williams said: “Eddy Alexandre defrauded tens of thousands of ordinary investors of almost a quarter-billion dollars in his cryptocurrency investment scam. Alexandre’s fraud was brazen and included fabricating weekly investment returns of at least 5% out of thin air and falsely claiming to use artificial intelligence trading technology that did not even exist. Most egregiously, Alexandre recruited many of his investors by exploiting his position of trust within his church and the Haitian community, even going so far as to enlist members of the church to help recruit EminiFX investors. As today’s sentence demonstrates, cryptocurrency executives who lie and cheat their customers will be held to account for their crimes.”
According to the allegations in the Indictment and other filings and statements made in court:
From in or about September 2021, up to and including in or about May 2022, ALEXANDRE operated EminiFX, Inc. (“EminiFX”), a purported investment platform that ALEXANDRE founded, and for which he solicited more than $248 million in investments from over 25,000 individual investors. ALEXANDRE marketed EminiFX as an investment platform through which investors would earn passive income through automated investments in cryptocurrency and forex trading. ALEXANDRE offered his investors “guaranteed” high investment returns using new technology that he claimed was secret. Specifically, ALEXANDRE falsely represented to investors that they would double their money within five months of investing by earning at least 5% weekly returns on their investment using a “Robo-Advisor Assisted account” to conduct trading. ALEXANDRE referred to this technology as his “trade secret” and refused to tell investors what the technology was. Each week, EminiFX’s website falsely represented to investors that they had earned at least 5% on their investment, which they could withdraw or re-invest.
In truth and in fact, and as ALEXANDRE well knew, EminiFX did not earn 5% weekly returns for its investors. ALEXANDRE did not even invest a substantial portion of the investor funds entrusted to him, and ALEXANDRE sustained millions of dollars in losses on the limited portion of funds that he did invest, which he did not disclose to his investors. Instead of using investors’ funds as he had promised, ALEXANDRE also misdirected at least approximately $14,700,000 to his personal bank account. For example, ALEXANDRE used $155,000 in investor funds to purchase a BMW car for himself and spent an additional $13,000 of investor funds on car payments, including to Mercedes Benz.
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In addition to his prison term, ALEXANDRE, 51, of Valley Stream, New York, was sentenced to three years of supervised release and ordered to pay forfeiture in the amount of $248,829,276.73 and restitution in the amount of $213,639,133.53.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation and also thanked the Commodity Futures Trading Commission, which brought a separate civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Nicholas Folly and Jared Lenow are in charge of the prosecution.
Businessman Sentenced for $3.5M Foreign Conduit Contribution SchemeRead the Press Release
A businessman with dual citizenship in Lebanon and the United States was sentenced today to an additional year and eight months in prison for his role in funneling at least $3.5 million in unlawful contributions from the United Arab Emirates (UAE) to unwitting political committees in the United States.
According to court documents, George A. Nader, 64, served as an advisor to senior UAE government officials during the relevant period. Nader conspired with co-defendant Ahmad “Andy” Khawaja to transfer $4.9 million to facilitate unlawful contributions to unwitting political committees in order to gain access to and influence with a then-candidate for President of the United States and others in connection with the 2016 U.S. presidential election. Nader’s company in the UAE transferred the funds to Khawaja’s company in the United States under the guise of a legitimate business transaction. Specifically, Nader and Khawaja entered into a false licensing agreement on behalf of their respective companies to disguise the multimillion-dollar transfer of funds as a legitimate commercial transaction involving the transfer of software from Khawaja’s company to Nader’s company. Nader and Khawaja further concealed the scheme by surreptitiously communicating through an encrypted messaging system with coded language about the transfer of funds and their hosting of and attendance at fundraising and campaign-related events.
Nader used the same encrypted messaging system to inform UAE government officials about his political activities in the United States. For example, on or about June 7, 2016, Nader reported to a senior UAE government official via encrypted messaging system that he “Had a terrific meeting with my Big Sister H[.] You will be most delighted!”; on or about June 29, 2016, Nader reported to the same UAE official: “Meeting with Big Lady went extremely well.”; and on or about July 27, 2016, Nader followed up with the same official: “I am catching up with key figures in both camps and have been developing a steady, consistent and constructive relationship with both camps!”
In total, Nader and Khawaja used at least $3.5 million of the UAE funds to make unlawful contributions to unsuspecting political committees in the United States, causing the political committees to submit materially false statements and reports to the Federal Election Commission unwittingly.
Following the 2016 election, Khawaja, through his company, made a $1 million contribution to the unwitting inaugural committee of the U.S. President-Elect. In connection with this contribution, Khawaja obtained tickets to the U.S. Presidential inauguration in January 2017, and Khawaja used the tickets to attend the inauguration with Nader as his guest.
In December 2019, Khawaja was indicted for his role in the scheme. Nader is currently serving a five-year prison term on unrelated charges in the Eastern District of Virginia and will begin serving the sentence he received today at the conclusion of the five-year term.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office investigated the case.
Senior Litigation Counsel Victor R. Salgado of the Criminal Division’s Public Integrity Section (PIN) prosecuted the case. Michelle K. Parikh, Tanya D. Senanayake, Michael J. Romano, and James C. Mann were previously assigned to the case as PIN Trial Attorneys and made substantial contributions.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bushkill Man Sentenced to 12 Months’ Imprisonment for Causing Serious Bodily Injury to Another Motorist as A Result of His Reckless & Unlicensed Operation of A Vehicle on Federal LandRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Fitzgerald C. Providence, age 50, of Bushkill, Pennsylvania, was sentenced on July 13, 2023, by United States District Court Judge Malachy E. Mannion to 12 months’ and 1 day of imprisonment and a 1-year term of supervised release, for recklessly causing serious bodily injury to another motorist as a result of a serious motor vehicle collision that occurred on federal land.
According to United States Attorney Gerard M. Karam, on September 24, 2021, on Bushkill Falls Road, within the Delaware Water Gap National Recreation Area, while unlicensed, Providence operated a motor vehicle in a criminally reckless manner by crossing into the opposing lane of travel of a two-lane road in a no-passing zone and attempting to pass three vehicles at once. In so doing, Providence caused a head-on collision with a vehicle traveling in the opposing lane that resulted in serious bodily injury to the victim, the driver of the other vehicle. At his sentencing, Providence was also ordered to pay restitution to the victim for lost wages and other unreimbursed medical expenses, with the specific amount to be determined by the Court within 90 days.
This case was investigated by the National Park Service Park Police. Assistant United States Attorney Jeffery St John prosecuted the case.
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Bridgeport Fentanyl Trafficker Pleads GuiltyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that KINSTON CUTHBERTSON, 31, of Bridgeport, pleaded guilty yesterday in New Haven federal court to a fentanyl trafficking offense.
According to court documents and statements made in court, on May 27, 2022, a court-authorized search of Cuthbertson’s residence on Waldorf Avenue in Bridgeport revealed approximately 1.2 kilograms of fentanyl; approximately 380 grams of cocaine; a quantity of crack cocaine; items used to process and package narcotics, including a kilogram press; a money counter; and $10,702 in cash.
Cuthbertson pleaded guilty to possession with intent to distribute 400 grams or more of fentanyl, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. He is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on October 6.
Cuthbertson has been detained since his arrest on May 27, 2022.
This investigation is being conducted by the Drug Enforcement Administration, the Connecticut State Police’s Statewide Narcotics Task Force Southwest and Statewide Urban Violence Cooperative Crime Control Task Force, and the Bridgeport Police Department’s Emergency Services Unit. The case is being prosecuted by Assistant U.S. Attorneys Patricia Stolfi Collins.
Automotive Shop Owner Convicted of Conspiracy to Distribute Fentanyl and Marijuana in Hampton RoadsRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Hampton man late Friday afternoon of conspiring to distribute and possess with the intent to distribute fentanyl and marijuana.
According to court records and evidence presented at trial, from approximately September 2019, until his arrest in April 2022, Orlando Roosevelt Adkins, 45, operated and managed Elite Customs, an automotive repair and custom autobody shop in Hampton, Virginia. During this time, this property was used as a drug-involved premises for a drug trafficking conspiracy. Within this conspiracy, the co-conspirators, including Adkins, distributed and possessed quantities of fentanyl and marijuana. The conspirators would purchase and receive drugs from suppliers in Mexico, Texas, California, and North Carolina, and arrange for the drugs to be transported to Virginia using rental vehicles, couriers, postal services, semi-trailers, trucks, and recreational vehicles. According to witnesses, Adkins facilitated the trafficking scheme by maintaining Elite Customs as a central point of operations for the conspiracy and cultivated illicit business relationships among conspirators.
On June 26, 2023, Adkins pleaded guilty to charges of distribution of marijuana, maintaining a drug-involved premises, and two counts of using a communication facility in furtherance of drug trafficking, but denied involvement in any drug trafficking conspiracy. Adkins was tried last week on the remaining conspiracy charge, during which the federal jury found that Adkins was, in fact, part of a drug conspiracy that involved fentanyl and marijuana.
Adkins was convicted of conspiracy to distribute and possess with intent to distribute fentanyl and marijuana and faces a mandatory minimum of 5 years in prison when sentenced on November 28. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Derek W. Gordon, Special Agent in Charge of U.S. Homeland Security Investigations; Mark G. Solesky, Chief of Chesapeake Police; Orrin Gallop, Interim Chief of Hampton Police; Steve R. Drew, Chief of Newport News Police; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after U.S. District Judge Jamar K. Walker accepted the verdict.
Assistant U.S. Attorney Peter Osyf and Special Assistant U.S. Attorney Jared Engelking prosecuted the case.
This case 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.
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-20.
Ashland Man Charged with Sexual Exploitation of a ChildRead the Press Release
JEFFERSON CITY, Mo. – An Ashland, Mo., man has been charged in federal court with Sexual Exploitation of a Child.
Scott Alan Barker, 31, was charged with one count of sexual exploitation of a child in a criminal complaint filed in the U.S. District Court in Jefferson City, Mo., on July 17, 2023. Barker remains in federal custody pending a detention hearing on Thursday, July 20. Copies of the complaint and supporting affidavit are attached.
The charge contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashley Turner. It was investigated by Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Armed Bank Robber Is Sentenced to More Than 11 YearsRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Franklin Earl Lawrence, Jr., 50, of Gastonia, N.C., to 141 months in prison followed by three years of supervised release for bank robbery and firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, and Chief Trent Conrad of the Gastonia Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, on August 19, 2021, Lawrence robbed at gunpoint the Truist bank branch located at 3070 Union Road in Gastonia. Court records show that Lawrence entered the bank wearing a hat, wig, and glasses, approached a teller, pointed his loaded firearm at the teller and demanded money. After the teller complied, Lawrence turned to a second teller, pointed his firearm at her and demanded more money. The teller handed her cash over to Lawrence and the defendant fled the scene. Officers with the Gastonia Police Department tracked Lawrence at a nearby field. When the officers approached Lawrence, the defendant threw his firearm at the direction of one of the officers before he was arrested. At the time of the arrest, officers recovered from Lawrence’s fanny pack the shirt, hat, wig and glasses Lawrence wore during the robbery, as well as a loaded pistol and the money the defendant stole from the bank.
On February 24, 2022, Lawrence pleaded guilty to bank robbery and brandishing a firearm during, and in relation to, and in furtherance of a crime of violence. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The FBI and the Gastonia Police Department investigated the case. Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville prosecuted 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. In 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.
Appleton Man Sentenced to Federal Prison for Armed StandoffRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin,
announced that on July 17, 2023, Senior United States District Judge William C. Griesbach sentenced Torey D. Robinson (Age: 37) to a total sentence of five years’ imprisonment and three years of supervised release for an armed standoff that occurred in Appleton, Wisconsin.
According to court documents, on April 10, 2023, Robinson approached Appleton Police Department officers and asked what kind of body armor they were wearing. Less than one hour later, officers were dispatched to a report of gunshots near Robinson’s residence. After arriving on scene, officers heard shots coming from Robinson’s residence, and they later observed him walk out of the residence with a rifle. A shelter-in-place order was given, and SWAT teams and crisis negotiators were called to the scene. After a standoff that lasted approximately five hours, Robinson was taken into custody.
At the scene, officers located a Diamondback Firearms DB-15 rifle and numerous rounds of ammunition. Robinson, as a convicted felon, was prohibited from possessing firearms or ammunition.
The Appleton Police Department investigated the case, which Assistant United States Attorney Alexander E. Duros prosecuted in United States District Court.
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Ansonia Man Sentenced to Federal Prison for Stealing and Selling Catalytic ConvertersRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that FRANCISCO AYALA, 22, of Ansonia, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 30 months of imprisonment, followed by three years of supervised release, for offenses related to his participation in a stolen catalytic converter trafficking ring.
According to court documents and statements made in court, this matter stems from an investigation into the coordinated theft of catalytic converters from motor vehicles across Connecticut. A catalytic converter contains precious metals, can easily be removed from its vehicle, and is difficult to trace, making it a desirable target for thieves. The average scrap price for catalytic converters currently varies between $300 and $1,500, depending on the model and type of precious metal component.
The investigation revealed that Ayala engaged in numerous catalytic converter thefts throughout Connecticut, and he was caught on surveillance video stealing converters from two vans at a business in Stratford on March 9, 2022. Between December 2021 and May 2022, Ayala and an associate sold approximately $150,000 worth of stolen catalytic converters to a co-conspirator who transported the converters to other businesses, including businesses in New York and New Jersey, for further resale and profit.
On April 4, 2023, Ayala pleaded guilty to one count of conspiracy to commit interstate transportation of stolen property, and one count of interstate transportation of stolen property.
Ayala has been detained in state custody for unrelated theft offenses since May 2022.
This investigation is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service – Criminal Investigation Division (IRS-CI), and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and A. Reed Durham.
Amarillo Man Sentenced to 11+ Years in Prison for Use of WMDRead the Press Release
An Amarillo man who set off a bomb in his backyard, stashed a suicide vest in his alleyway, and privately plotted to blow up a local high school was sentenced today to more than 11 years in federal prison on a weapons of mass destruction (WMD) charge, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Erfan Salmanzadeh, a 34-year-old naturalized citizen of the U.S. born in Iran, was charged via criminal complaint in July 2021 and indicted the following month. He pleaded guilty in December 2022 to use and attempted use of a weapon of mass destruction and was sentenced today to 135 months in prison by U.S. District Judge Matthew J. Kacsmaryk.
“This defendant stashed a highly volatile substance inside his home, putting his whole neighborhood at risk. Moreover, he apparently contemplated using it to inflict violence on a local school,” said U.S. Attorney Leigha Simonton. “The Justice Department is always alert for this type of threat. We urge the community to partner with us by reporting suspicious behavior to law enforcement so that we can swiftly address any potential danger.”
“The FBI would like to thank the Amarillo Police Department, the North Texas Joint Terrorism Taskforce, Homeland Security Investigations, the Texas Department of Public Safety, Randall County Sheriff’s Office, and the Amarillo Fire Department for partnering with us on this investigation,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “Today’s sentence holds the defendant accountable for possessing a device with the potential to cause significant damage and harm innocent people. Intervention from concerned neighbors allowed us to move quickly and prevent a violent attack. We ask that the public continue to remain vigilant and report suspicious activity to law enforcement.”
According to plea papers, Mr. Salmanzadeh admitted to law enforcement that he used homemade triacetone triperoxide (TATP) to blow up an Xbox in his back yard on July 26, 2021. At the time, he claimed he wanted to see how much damage such an explosion would cause.
He further admitted that after law enforcement arrived at the home to investigate the explosion – which was reported by neighbors who heard the blast – he flushed a gallon-sized jar of TATP powder down the toilet and concealed a suicide vest and a nail bomb in a dumpster in his alleyway.
According to plea papers, bomb technicians collected residual TATP – an extremely unstable explosive that reacts violently to friction and shock – from the defendant’s porcelain toilet bowl. They also discovered TATP residue on a white PVC pipe hidden in his bedroom closet. Officers recovered the suicide vest, which contained several sewn pockets filled with red cylindrical taped tubes labeled “dynamite,” and nail bomb from the dumpster.
Law enforcement later reviewed his electronic devices, including a video Mr. Salmanzadeh recorded on July 22, 2021, threatening to blow up a local high school.
“We are going to blast the school,” he said in Farsi, before displaying the nail bomb filled with shrapnel, the suicide vest filled with pipes labeled dynamite, a suitcase filled with container labeled explosives, and a backpack filled with bottles labeled explosives to the camera.
Officers uncovered several other videos showing Mr. Salmanzadeh conducting test explosions and several journals that contained notes and formulas related to the production of explosives.
In plea papers, Mr. Salmanzadeh admitted he used the internet to conduct all the research he needed to construct TATP and WMD. He also admitted he used the internet to purchase a plane ticket to California on July 28, 2021, to avoid detection by law enforcement after a bombing.
The Federal Bureau of Investigation’s Dallas Field Office and the Amarillo Police Department conducted the investigation with the assistance of the North Texas Joint Terrorism Taskforce, Homeland Security Investigations, the Texas Department of Public Safety, Randall County Sheriff’s Office, and the Amarillo Fire Department. Assistant U.S. Attorneys Jeffrey Haag and Josh Frausto prosecuted the case with assistance provided by the National Security Division’s Counterterrorism Section.
Albuquerque Man Sentenced to 2 Years in Prison for 5 Bank RobberiesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigations’ Albuquerque Field Office, announced that Jason Smeltzer was sentenced to 27 months in prison. Smeltzer, 41, of Albuquerque, pled guilty to 5 counts of bank robbery on March 22, 2023.
According to court documents, between Jan. 20 and Feb. 23 of 2022, Smeltzer robbed four Albuquerque banks, one of which he robbed twice. On Jan. 21, the FBI received a tip through the National Threat Operation Center identifying Smeltzer as a possible suspect. Following the fifth robbery on Feb. 23, Robbery Detectives from the Albuquerque Police Department initiated surveillance on Smeltzer’s residence and observed Smeltzer wearing clothes consistent with the description given to them by a teller at the bank. When Smeltzer left his residence, APD Detectives initiated a traffic stop and Smeltzer was taken into custody.
Upon his release from prison, Smeltzer will be subject to 3 years supervised release.
The Federal Bureau of Investigations Albuquerque Violent Crimes and Gangs Task Force investigated this case. Assistant United States Attorney Matthew Nelson is prosecuting the case.
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Vicksburg Man Sentenced to 10 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss. – A Vicksburg man was sentenced to 120 months in federal prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
Maurice Duff, 44, was sentenced in U.S. District Court in Hattiesburg.
According to court records, on January 11, 2021, Duff sold 83.62 grams of pure methamphetamine to a DEA confidential source in Hattiesburg.
Duff was indicted by a federal grand jury on July 19, 2022, for possession with intent to distribute methamphetamine. He pled guilty on February 16, 2023.
The case was investigated by the Drug Enforcement Administration.
The case was prosecuted by Assistant U.S. Attorneys Erica Rose and Shundral Cole.
U.S. Departments of Justice and Commerce and the European Commission Reaffirm Shared Values, Welcome Finalized EU-U.S. Data Privacy FrameworkRead the Press Release
Attorney General Merrick B. Garland hosted Secretary of Commerce Gina Raimondo and European Commissioner for Justice Didier Reynders for a meeting at the Justice Department today marking the European Union (EU)’s recognition of the adequacy of the EU-U.S. Data Privacy Framework (DPF).
“The EU-U.S. Data Privacy Framework reflects the strength of the partnership between the United States and the European Union as well as our shared commitment to upholding the rule of law, protecting individual privacy, and keeping the public safe,” said Attorney General Merrick B. Garland. “We are grateful to our European partners for the years of work and cooperation that brought us to this point, and we look forward to continuing our work together to implement these important new data privacy safeguards.”
“The DPF is a testament to the strength of the U.S.-EU relationship, and it reflects our joint commitment to promoting economic opportunity while protecting individual privacy rights,” said U.S. Secretary of Commerce Gina Raimondo. “Now, businesses – large and small – will be able to access a streamlined and affordable mechanism to transfer data between our jurisdictions. To meet the needs of businesses, the Commerce Department launched the DPF program website today, giving companies a one-stop-shop where they can sign up for the DPF program and get important information about its benefits.”
“The EU-U.S. Data Privacy Framework represents a significant achievement for safe and trusted transatlantic data flows,” said European Commissioner for Justice Reynders. “The new framework guarantees the fundamental right of Europeans for the protection of their personal data and brings legal certainty for companies on both sides of the Atlantic. Today’s meeting is the result of months of intense negotiations based on shared values and trust with my U.S. counterparts. It shows the EU and the U.S. are like-minded partners that can work together to find solid solutions to complex issues.”
Last week, the Departments of Justice and Commerce welcomed the European Commission’s adequacy decision for the EU-U.S. Data Privacy Framework, to which President Biden and European Commission President von der Leyen agreed in March 2022. Transatlantic data flows underpin more than $7 trillion in cross-border trade and investment per year and create greater economic opportunities for companies and citizens on both sides of the Atlantic. The DPF will be a valuable tool for businesses of all sizes, including small and medium, that are participating in the transatlantic economy, providing an affordable and straightforward means of transferring personal data consistent with EU law. The adoption of the adequacy decision on July 10 by the European Commission establishes a basis in EU law for the transfer of personal data from EU countries to the United States by businesses in both America and Europe using the DPF. This determination will also facilitate transfers through other EU legal mechanisms, including Standard Contractual Clauses and Binding Corporate Rules. The EU’s adoption of the adequacy decision was made possible by the fulfillment of the commitments the United States made in the EU-U.S. Data Privacy Framework (EU-U.S. DPF), announced by Presidents Biden and von der Leyen in March 2022:
- On Oct. 7, 2022, President Biden issued Executive Order 14086 on Enhancing Safeguards for United States Signals Intelligence Activities, which bolstered an already rigorous array of privacy and civil liberties safeguards for U.S. signals intelligence activities. It also created an independent and binding mechanism enabling individuals in qualifying states, as designated under the Executive Order, to seek redress if they believe their personal data was collected through U.S. signals intelligence in a manner that violated applicable U.S. law.
- Also on Oct. 7, 2022, and pursuant to that Executive Order, Attorney General Garland signed a new regulation establishing a Data Protection Review Court (DPRC). The DPRC will independently review determinations made by the Civil Liberties Protection Officer of the Office of the Director of National Intelligence in response to qualifying complaints sent by individuals through appropriate public authorities that allege certain violations of U.S. law in the conduct of U.S. signals intelligence activities.
- On June 30, Attorney General Garland designated the EU and the three additional countries making up the European Economic Area (EEA) as “qualifying states” – contingent on the adoption of an adequacy decision – for purposes of implementing the redress mechanism established under Executive Order 14086.
- The Office of the Director of National Intelligence confirmed on July 3, that U.S. intelligence agencies have adopted implementing procedures as required by the Executive Order.
U.S. Attorney Thompson to Announce Human Trafficking Training Initiative for Educators and Social WorkersRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson will hold a press conference on Tuesday, July 18, 2023, at 10 a.m. at the Robert C. Byrd United States Courthouse to announce new training tools to help better identify and report human trafficking and rescue child victims.
The U.S. Attorney’s Office partnered with the West Virginia State Police and the West Virginia Center for Children’s Justice to create training videos specifically for teachers and child protective services workers. Leaders from those organizations will join Thompson for the announcement along with officials from the Federal Bureau of Investigation (FBI), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the West Virginia Department of Education, the West Virginia Board of Education, the West Virginia Department of Health and Human Resources, the West Virginia Fusion Center, and Cabell, Kanawha, Mercer and Wayne county schools.
WHAT: Announcement of new human trafficking training initiative
WHEN: Tuesday, July 18, 2023, at 10 a.m.
WHERE: Robert C. Byrd United States Courthouse, 300 Virginia Street East, Charleston.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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Two Men Plead Guilty to $67M Medicare Fraud SchemeRead the Press Release
Two Florida men pleaded guilty last week for their roles in a scheme to defraud Medicare by submitting over $67 million in false claims for genetic testing and durable medical equipment that patients did not need and that the defendants procured with kickbacks.
The pleas came after four days of trial in the Southern District of Florida.
According to court documents, Daniel M. Carver, 36, of Boca Raton, owned and managed call centers that he used to conduct deceptive telemarketing campaigns targeting Medicare beneficiaries to solicit them for unnecessary genetic testing and durable medical equipment. Louis “Gino” Carver, 32, of Delray Beach, worked for these call centers and acted as a straw owner for a laboratory that submitted false genetic testing claims. The Carvers and their co-conspirators paid kickbacks and bribes to telemedicine companies in exchange for completed doctors’ orders, sold doctors’ orders to laboratories and durable medical equipment companies in exchange for kickbacks, forged doctors’ and patients’ signatures, and tricked medical providers into ordering medically unnecessary genetic testing. Between January 2020 and July 2021, the scheme resulted in the submission of over $67 million in false claims to Medicare for medically unnecessary genetic tests and durable medical equipment.
Daniel Carver pleaded guilty to conspiracy to commit health care fraud and wire fraud and conspiracy to defraud the United States and to pay and receive kickbacks. He faces a maximum penalty of 25 years in prison. Louis Carver pleaded guilty to conspiracy to commit health care fraud and faces a maximum penalty of 10 years in prison. Both men are scheduled to be sentenced on Dec. 5. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In addition to last week’s guilty pleas, five other defendants in this case have pleaded guilty and are awaiting sentencing. Three defendants are scheduled for a trial set to commence on Sept. 26.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorneys Patrick Queenan, Reginald Cuyler Jr., and Andrew Tamayo of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment and an information are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Laplace Residents Charged with Preparing and Submitting Fraudulent Applications for Cares Act Financial AssistanceRead the Press Release
NEW ORLEANS – LYNN SCHOFIELD, age 60, and BASHIR SCHOFIELD, age 23, residents of LaPlace, Louisiana, were federally charged on July 13, 2023 for preparing and filing false loan applications related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), announced U.S. Attorney Duane A. Evans. LYNN SCHOFIELD was charged in a one-count bill of information with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 371 and 1343. BASHIR SCHOFIELD was charged in a one-count bill of information with wire fraud, in violation of Title 18, United States Code, Section 1343.
According to the bills of information, LYNN SCHOFIELD and BASHIR SCHOFIELD worked together with another, unnamed individual to submit applications to fraudulently obtain money from Paycheck Protection Program (PPP) loans and Economic Injury Disaster loans (EIDL). Each defendant submitted at least one loan, and all applications falsely represented that the applicant had a sole proprietorship and generated substantial income from the business by falsely overinflating gross receipts. They also misrepresented that the loan proceeds were for business purposes. Instead, the defendants intended to use the money for personal purposes. More specifically, the entities either did not exist or earned far less money than LYNN SCHOFIELD, BASHIR SCHOFIELD, and the unnamed individual represented.
LYNN SCHOFIELD faces a maximum term of imprisonment of five (5) years in prison, up to three years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee. BASHIR SCHOFIELD faces a maximum term of imprisonment of twenty (20) years in prison, up to three years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee.
U. S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Tohatchi Man Pleads Guilty to Involuntary Manslaughter in Indian CountryRead 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 Donavan Henry pled guilty to involuntary manslaughter in Indian Country. Henry, 40, of Tohatchi, New Mexico, and an enrolled member of the Navajo Nation, will remain on conditions of release pending sentencing, which has not yet been scheduled. Henry’s conditions include a strict prohibition on drug and alcohol use, drug and alcohol testing, and substance-abuse treatment.
According to court documents, on November 2, 2022, Henry was driving east on Route 134 in Sheep Springs, New Mexico, with two passengers when he lost control of his vehicle. The vehicle went off the two-lane road and flipped when it hit a boulder. All three passengers were ejected from the vehicle. A Navajo Police officer arrived to find Henry underneath the vehicle and his passengers lying on the ground near the vehicle.
Henry was airlifted to San Juan Regional Medical Center. The passenger from the front seat, John Doe 1, who was also a member of the Navajo Nation, was placed in an ambulance bound for Northern Navajo Medical Center. The passenger from the back seat, John Doe 2, was placed in an ambulance going to Gallup Indian Medical Center. John Doe 1 died of his injuries while in the back of the ambulance before it left the scene. Henry’s blood-alcohol content, which was drawn at the hospital following the wreck, was .16.
At sentencing, Henry faces a statutory maximum of up to eight years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and the New Mexico Office of the Medical Investigator. Assistant United States Attorney Zachary Jones is prosecuting the case.
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Three Men Pled Guilty to Federal Charges Involving Maintaining a Drug-Involved Premises at Motel in AlbuquerqueRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Gregory M. Millard, Special Agent in Charge for the DEA El Paso Division, announced today that Kamal Bhula, Pragneshkumar Patel and Johnathan Craft pled guilty to drug and firearms charges arising from a drug trafficking venture run out of a motel Albuquerque. Bhula and Craft will remain in custody pending sentencing, which has not been scheduled.
Kamal Bhula, 44, of Albuquerque, and Pragneshkumar “Pete” Patel, 36, of Montgomery, Alabama, pled guilty to one count each of maintaining a drug-involved premise. Jonathan Craft, 36, of Albuquerque, pled guilty to conspiracy and being a prohibited person in possession of a firearm or ammunition.
A federal grand jury indicted Bhula and Craft on June 20, 2019. Patel was indicted on November 5, 2019. According to court records, Patel owned the Best Choice Inn at 7640 Central Avenue SE and was the on-site manager from September 2017 to March 2018, when Bhula leased the property from Patel and took over as the on-site manager. Craft lived and worked at Best Choice Inn, claiming to be in charge when Bhula was away. Craft sold drugs from his room, permitted others to do the same, and permitted individuals to use drugs on the premises. Craft also unlawfully possessed a firearm. Bhula and Patel allowed drug trafficking at the motel and personally observed and profited from those who used controlled substances on the premises.
At sentencing, Bhula, Craft and Patel each face up to 20 years in prison.
The Drug Enforcement Administration investigated this case with assistance from the New Mexico Attorney General’s Office, the Albuquerque Police Department, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Marshals Service, the Bernalillo County Sheriff’s Office and New Mexico State Police. Assistant United States Attorneys Letitia Carroll Simms and Jack E. Burkhead are prosecuting the case.
Texas Lawyer Convicted of Conspiracy and PerjuryRead the Press Release
TYLER, Texas – A Houston lawyer has been found guilty of federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Peter J. Bennett, 48, was found guilty by a jury of money laundering conspiracy, money transmitting conspiracy, and perjury. The verdict was reached on July 14, 2023, following a week-long trial before U.S. District Judge Jeremy D. Kernodle.
“Lawyers swear an oath to support and uphold the Constitution and the laws of the United States,” said U.S. Attorney Damien M. Diggs. “This defendant abandoned his oath and used his bar license to launder and transmit the proceeds of a healthcare kickback conspiracy. Let this case serve as a cautionary tale to those who think they can hide criminal conduct behind professional licenses.”
“By facilitating kickbacks, this defendant knowingly enabled theft from Medicare and Medicaid, putting personal profit before legitimate patient needs and ultimately costing taxpayers millions of dollars,” said Jason E. Meadows, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Thanks to the strong partnership between federal and state law enforcement agencies, those who attempt to defraud federal health care programs will be held accountable.”
“The Department of Defense Inspector General, Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the healthcare system for military members and their families,” said Special Agent-in-Charge Michael C. Mentavlos, DCIS. “Today’s guilty verdict demonstrates our commitment to partner with the United States Attorney's Office and investigate fraudulent schemes that impact TRICARE and put its beneficiaries at risk.”
According to information presented in court, Bennett created sham trusts and shell corporations through which he laundered at least $2,724,080.41 in healthcare kickback proceeds. Bennett used his law firm’s Interest on Lawyers Trust Account (IOLTA), operating account, and a personal bank account to launder and transmit the kickback proceeds. The perjury charges arose out of false statements Bennett made in response to interrogatories propounded in Civil Investigative Demands issued by the Department of Justice as part of a False Claims Act (FCA) investigation. Bennett was indicted by a federal grand jury in February 2022.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the Defense Criminal Investigative Services (DCIS) with assistance from the U.S. Secret Service. It was prosecuted by Assistant U.S. Attorneys Adrian Garcia, Nathaniel C. Kummerfeld, and Betty Young, with assistance from Assistant U.S. Attorneys James Gillingham and Kevin McClendon.
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Suburban Chicago Physician Sentenced to Federal Prison for Prescribing Opioids Without a Medical ExamRead the Press Release
CHICAGO — A suburban Chicago physician has been sentenced to a federal prison term for prescribing opioids to patients without a medical examination and then billing Medicare for the purported treatment.
ELIZA DIACONESCU, 74, of Lake Forest, Ill., pleaded guilty earlier this year to a federal health care fraud charge. U.S. District Judge Steven C. Seeger on Wednesday sentenced Diaconescu to six months in federal prison and ordered her to pay $84,031 in restitution to Medicare.
Diaconescu admitted in a plea agreement that from 2016 to 2021, she pre-signed prescriptions for hydrocodone, oxycodone, and fentanyl for patients of her pain clinic in Gurnee, Ill., so that the prescriptions could be provided to patients when Diaconescu was not at the clinic. Diaconescu and others at the clinic created false paperwork indicating that Diaconescu had face-to-face exams with the patients, when, in fact, the patients had only come to pick up the pre-signed prescriptions and had not visited with Diaconescu. Diaconescu then knowingly submitted false claims seeking reimbursement from Medicare for the purported exams, knowing that such exams did not occur.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Division of the DEA, Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General, and Irene Lindow, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Labor, Office of Inspector General.
The case was brought by the U.S. Attorney’s Office’s Opioid Task Force, which was formed in 2019 for the purpose of combatting the unlawful distributions of controlled substances.
“The defendant’s fraudulent conduct was a gross abuse of the trust that Medicare places on medical providers to accurately bill for the work they have done,” Assistant U.S. Attorney Jared Hasten argued in the government’s sentencing memorandum. “All of the money paid by Medicare should have gone towards providing medical services to beneficiaries.”
Statement of U.S. Attorney Damian Williams on Intention to File for Contempt and Seek A Court-Appointed Receiver to Address Conditions on Rikers IslandRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced his Office’s intention to seek the appointment of a receiver to address the ongoing risk of harm to both incarcerated individuals and Department of Correction (“DOC”) Staff.
U.S. Attorney Damian Williams said: “Rikers Island has been in crisis for years. This is a collective failure with deep roots, spanning multiple mayoral administrations and DOC commissioners. But after eight years of trying every tool in the toolkit, we cannot wait any longer for substantial progress to materialize. That is why my Office will seek a court-appointed receiver to address the conditions on Rikers Island.”
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In 2015, the United States entered into a consent decree with the City of New York and the DOC to address violations of the constitutional rights of incarcerated individuals at Rikers Island (the “Consent Decree”). The Consent Decree required DOC to develop and implement a wide range of reforms to reduce the level of violence in the jails and ensure the safety and well-being of people in custody as well as corrections officers. Over the past eight years, this Office has worked diligently with the Monitor appointed pursuant to the Consent Decree and all parties to address the ongoing unsafe conditions on Rikers Island. After multiple remedial orders and an Action Plan that has been in place for over a year, on July 10, 2023, the Monitor found that despite some progress in certain areas, DOC has not made “substantial and demonstrable progress in implementing the reforms, initiatives, plans, systems, and practices as outlined in the Action Plan” and “there has not been a substantial reduction in the risk of harm currently facing incarcerated individuals and Department staff.” In light of these findings, this Office has decided to pursue contempt proceedings and seek additional relief from the Court, including the appointment of a receiver, to address the ongoing risk of harm to both incarcerated individuals and DOC staff. If appointed, the receiver would report to the Court and have independent authority to take necessary steps to comply with core provisions of the Consent Decree and other Court-ordered relief.
St. Louis County Sex Offender Sentenced to 10 Years for New Child Pornography CaseRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Monday sentenced a St. Louis County, Missouri man who used fake social media accounts to bait people into sending him sexual images to 10 years in prison for possession of child pornography.
Christopher D. Gruebbel, then 37, pleaded guilty in February to one count of possession of child pornography and admitted being caught with child pornography by probation officers.
Gruebbel was on supervised release at the time because in 2013, he was sentenced to four years and three months in prison after pleading guilty to two counts of possession of child pornography. Part of his sentence included a provision that after his release from prison, he would be on supervised release for life.
On multiple occasions in 2021, Gruebbel’s probation officer was unable to find him at his approved residence, later learning that Gruebbel had been evicted and was living with his mother without permission.
Probation officers then discovered that Gruebbel was in possession of multiple electronic devices without permission, including a laptop, a cell phone, an iPad and an iPod.
A total of 50 images and 14 videos containing child pornography were found on the iPad, as well as 251 images and 117 videos that contained exploitative and/or suspected child pornography on Gruebbel’s electronic devices.
An analysis of the devices also showed that Gruebbel was using fake social media accounts and posing as a young female named “Hannah” to bait people into sending nude pictures and videos of themselves, his plea agreement says. Gruebbel also participated in chat rooms devoted to “baiting” others into providing sexual images.
After his release from the new prison term, Gruebbel will be on supervised release for life.
The case was investigated by the U.S. Probation Office and the FBI. Assistant U.S. Attorney Jonathan Clow prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Springfield Man Convicted of Sex Trafficking a Minor He Solicited over FacebookRead the Press Release
BOSTON – A Springfield man has been convicted by a federal jury for sex trafficking of a minor under 14 years old.
Carlos Casillas, 51, was convicted on July 14, 2023 following a three-day jury trial of one count of sex trafficking of a minor. A sentencing date has not yet been scheduled by the court.
In September 2021, an investigation began into Casillas for sex trafficking activity involving a 13-year-old girl living in a group home in the custody of the Massachusetts Department of Children and Families. Evidence presented at trial established that Casillas solicited the minor victim using Facebook messenger, picked the minor victim up from her group home and eventually took her to a local motel.
“Carlos Casillas preyed on a vulnerable 13-year-old girl in state custody. His conduct was beyond horrific and now he will face the lengthy sentence of incarceration the law requires for sex trafficking of a minor. This office and the incredibly dedicated federal, state and local law enforcement partners we work with will never cease in our efforts to protect children from sexual exploitation,” said Acting United States Attorney Joshua S. Levy.
“Casillas preyed upon a child in a vulnerable situation. Now, he has been convicted of trafficking a minor and is facing a significant federal sentence. Homeland Security Investigations works every day to bring predators like Casillas to justice and to help connect victims to assistance to heal and move forward,” said Michael J. Krol, Acting Special Agent in Charge for Homeland Security Investigations in New England.
Members of the public who believe they, or someone they know, may be a victim of this crime should contact [email protected]. If you or someone you know may be impacted or experiencing commercial sex trafficking, please visit https://polarisproject.org/ for information and resources.
The charge of sex trafficking of a minor under 14 years old provides for a sentence of at least 15 years in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy; HSI Acting SAC Krol; Hampden County District Attorney Anthony D. Gulluni; Hampden County Sheriff Nicholas Cocchi; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorneys Catherine G. Curley and Deepika Bains Shukla of the Springfield Branch Office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Schenectady Felon Sentenced to 72 Months for Possessing Fentanyl and Cocaine Base for Distribution, and for Possessing Firearms in Furtherance of Drug TraffickingRead the Press Release
ALBANY, NEW YORK – Charles J. Whorley, age 35, formerly of Schenectady, New York, was sentenced today to 72 months in prison for possessing and intending to distribute fentanyl and cocaine base, and for possessing firearms in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and New York State Police (NYSP) Acting Superintendent Steven A. Nigrelli.
In pleading guilty, Whorley admitted to distributing a fentanyl mixture on several dates in June 2020, and to possessing 94 grams of fentanyl and 77 grams of cocaine base, which he intended to distribute, at his residence in Schenectady, on June 25, 2020. Whorley, a previously convicted felon, further admitted to possessing three loaded handguns at his residence to protect drugs and the cash generated from drug sales.
United States District Judge Mae A. D’Agostino also ordered that Whorley serve a 3-year term of supervised release following his release from prison.
This case was investigated by the NYSP and ATF with assistance provided by the Schenectady County District Attorney’s Office. Assistant U.S. Attorney Emmet O’Hanlon prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Saratoga Man Sentenced for Money Laundering ConspiracyRead the Press Release
ALBANY, NEW YORK – Michael J. Smith, age 62, of Saratoga, New York, was sentenced today to 5 years of probation for conspiring to launder money.
United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General (USDOL-OIG), North East Region; and Ketty Larco-Ward, Postal Inspector in Charge of the U.S. Postal Inspection Service (USPIS), Boston Division, made the announcement.
In previously pleading guilty, Smith admitted to conspiring with a purported woman he met online and her purported attorney to launder over $200,000 in fraudulently obtained government benefits between June 2020 and May 2022. The benefits mostly came from COVID-19 relief programs and were obtained through fraudulent unemployment insurance applications and fraudulent business loan applications. The benefits were deposited into Smith’s bank account by government entities in several states, including Ohio, Illinois, Maryland, Colorado, California, and Pennsylvania, and sent to him by check and on debit cards. To launder the funds after he received them, Smith purchased gift cards with the fraud proceeds, took photographs of the gift cards, and sent the photographs to the purported woman and her purported attorney. He also transferred fraud proceeds to his co-conspirators.
Smith was also ordered to pay $208,263.22 in restitution to the defrauded government entities.
The case was investigated by HSI, USDOL-OIG, USPIS, and the New York State Police, and prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
San Diego Couple Charged with Stealing Stimulus Payments During Pandemic and Purchasing Luxury Mercedes-Benz and JewelryRead the Press Release
NEWS RELEASE SUMMARY – July 17, 2023
SAN DIEGO – An indictment unsealed in federal court today charges Alexandra Crystal McFarland and Demetrius Montre McFarland, a married couple, with participating in a scheme to steal IRS stimulus payments during the COVID-19 pandemic from destitute and vulnerable victims and using the proceeds to purchase a luxury vehicle, jewelry and furniture.
The indictment alleges that between April 2020 and at least September 2020, Mrs. McFarland approached homeless and low-income individuals throughout Southern California for the purpose of soliciting and collecting their personal identifying information (“PII”). Mrs. McFarland then allegedly used that information—along with the PII of detainees at two local detention facilities—to submit applications for Economic Impact Payments (EIP) from the IRS, which are commonly referred to as “stimulus payments.”
For his part, Mr. McFarland allegedly provided Mrs. McFarland with the PII of his fellow detainees at the Vista Detention Center. Mr. McFarland is presently serving a state prison term for attempted murder.
Mrs. McFarland allegedly made false representations to obtain the PII, including that those providing their PII to her could expect to receive an EIP in the mail, when in fact Mrs. McFarland directed payment of the EIP to a bank account that she controlled. Similarly, Mrs. McFarland also allegedly claimed she would assist with the application in exchange for an agreed-upon portion of the EIP, but in fact would keep more than the agreed-upon amount—and sometimes the entire EIP. The indictment further alleges that Mrs. McFarland also used victims’ PII without lawful authority to apply for benefit payments from the State of California Employment Development Department.
The indictment states that Mrs. McFarland used various EDD debit cards to purchase thousands of dollars of jewelry, nearly $9,000 in furniture that she shipped to her Spring Valley residence, and to cover part of a $60,000 down payment for a Mercedes-Benz G-Class 550 SUV that she purchased in the name “Alexa McFarland.” In addition to the conspiracy count, the indictment charges Mrs. McFarland with money laundering based on her purchase of the luxury vehicle, which the IRS has seized.
Mrs. McFarland entered a not guilty plea on July 17, 2023. A detention hearing before U.S. Magistrate Judge Michael S. Berg is scheduled for July 20, 2023, and a motion hearing and trial setting before U.S. District Judge Gonzalo P. Curiel is scheduled for August 7, 2023.
Mr. McFarland is expected to make his initial appearance on July 18, 2023. Mr. McFarland will be arraigned on both the indictment and on allegations that he violated the terms of supervised release imposed in his prior federal conviction for Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity (RICO) in Criminal Case No. 17-CR-270-JAH.
DEFENDANTS Case Number 23-CR-1098-GPC
Alexandra Crystal McFarland Age: 32 San Diego, CA
Demetrius Montre McFarland Age: 30 San Diego, CA
SUMMARY OF CHARGES
Conspiracy–Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
Money Laundering–Title 18, U.S.C., Section 1957
Maximum penalty: Ten years in prison and $250,000 fine
AGENCY
Internal Revenue Service, Criminal Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Rumford Man Pleads Guilty to Employment Tax EvasionRead the Press Release
PORTLAND, Maine: A Rumford man pleaded guilty today in U.S. District Court in Portland to willfully evading the payment of employment taxes.
According to court records, between 2013 and 2017, Jeffrey Richard, 48, willfully attempted to evade payment of employment withholding taxes owed by his company, Black Bear Industrial, Inc. Despite being aware of the company’s unpaid employment tax liability, Richard took a variety of steps to evade payment. He regularly used funds from Black Bear’s business bank account to make business and personal purchases, all while making no payments toward Black Bear’s tax liability. He also created two nominee companies and took steps to disguise his ownership of the companies. He falsely represented to an IRS revenue officer that he had anything to do with one of the companies. The other company did business and had over $174,000 of business income in 2017, but none of the money was used to pay the IRS. Richard never informed the IRS about the company, and the company never filed any corporate or employment tax returns.
Richard faces up to five years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation investigated the case.
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Recidivist Sex Offender Sentenced to Time Served After Pleading Guilty to Possession Child Pornography in Two Separate CasesRead the Press Release
ALBUQERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico announced today that Thomas Crosby was sentenced to 5 days in prison or time served. Crosby, 29, of Irwin, Pennsylvania, pled guilty in federal court to the possession of visual depictions of minors engaging in sexually explicit conduct in two separate cases on Sept. 14, 2022.
According to the plea agreement and other court records, on June 20, 2018, PayPal reported seven accounts potentially selling child pornography and numerous accounts purchasing content from the noted sellers. One such buyer was identified as Crosby. PayPal identified various IP addresses utilized by Crosby and provided them to the FBI. Special Agents from the FBI checked the IP addresses in the Internet Crimes Against Children (ICAC) database and were able to determine that they were actively downloading child pornography on the BitTorrent network around the same dates Crosby logged into PayPal.
At the time of the offense, Crosby was a member of the United States Air Force assigned to Cannon Air Force Base near Clovis, NM. On November 14, 2018, law enforcement agents executed a search warrant on Crosby’s address in Clovis. Crosby was subsequently interviewed by agents of the Air Force Office of Special Investigations and the FBI and admitted to downloading child pornography via BitTorrent. Crosby was administratively discharged from the Air Force as a result and returned to the Pittsburgh area in the Western District of Pennsylvania.
Crosby was indicted by a federal grand jury in the District of New Mexico on Sept. 23, 2020. After Crosby was indicted in the District of New Mexico in September 2020 for possessing child pornography, the FBI executed an arrest warrant near Monroeville, Pennsylvania. At the time of his arrest, Crosby admitted to continuing to view child pornography after leaving New Mexico despite law enforcement intervention. A search of Crosby’s phone uncovered additional items of child pornography. As a result, Crosby was federally indicted on Feb. 1, 2022, in the Western District of Pennsylvania for the additional child pornography offenses.
On Sept. 19, 2022, after the Pennsylvania case was transferred to New Mexico, Crosby pled guilty in federal court to the possession of visual depictions of minors engaging in sexually explicit conduct in both cases. The United States Sentencing Guideline range for Crosby’s offense was 78-97 months in prison, supervised release for 5 years to life, and a requirement to register as a sex offender upon his release from prison.
On July 13, 2023, Crosby appeared in District Court for sentencing in both cases. The United States recommended that he receive a sentence of 78-months incarceration. Crosby was sentenced to time served, or 5 days in prison, 15 years of supervised release, and ordered to pay restitution in the amount of $12,000. One of the conditions of Crosby’s supervised release is that he be on GPS monitoring with home detention, which allows him to leave his residence for work, appointments, and with the express permission of his Probation Officer for five years. He will also be required to register as a sex offender.
The New Mexico case was investigated by the Las Cruces Resident Agency of the Federal Bureau of Investigations and the Air Force Office of Special Investigations with assistance from the New Mexico Regional Computer Forensics Laboratory.
Pinellas County Man Sentenced for Wire and Bank Fraud OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn K. Mizelle has sentenced James John Melis (54, Largo) to four years and three months in federal prison for bank fraud and wire fraud. As part of his sentence, the court entered an order of forfeiture in the amount of $439,177, the proceeds of the charged criminal conduct. The court also ordered Melis to pay $684,000 in restitution, which represents the loss amount of the offenses. Melis had pleaded guilty on March 20, 2023.
According to court documents, Melis was involved in two fraud schemes. In the first, Melis abused his position as business manager at a private school in Hillsborough County by fraudulently attaching his personal bank account to one of the school’s financial accounts. When parents made tuition payments, Melis initiated fraudulent electronic funds transfers to his personal account. He then spent the stolen funds on travel and luxury items, including jewelry.
In the second scheme, Melis carried out a mortgage origination fraud against a financial institution for two properties that he owned. To deceive the lender into believing that he was a qualified borrower, Melis used the personal identification information of another person on loan applications, and prepared and submitted false and fraudulent IRS income tax returns, fictitious satisfactions of mortgages falsely representing that his properties had equity, and bogus lease agreements falsely showing he received substantial rental income. Based on Melis’s misrepresentations, the financial institution approved and funded both mortgage loans. The mortgage loans were purchased and guaranteed by Fannie Mae.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and Federal Bureau of Investigation. It was prosecuted by Special Assistant United States Attorney Chris Poor. Assistant United States Attorney James A. Muench is handling the forfeiture.
Orange County Man Sentenced to 4.25 Years in Prison for Trafficking Fentanyl and Heroin in Bakersfield and FresnoRead the Press Release
FRESNO, Calif. — Luis Noe Hernandez Rojo, 34, of Orange, was sentenced today to four years and three months in prison for conspiring to distribute and possess with intent to distribute fentanyl and heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Hernandez participated in a well-established heroin and methamphetamine drug trafficking organization based in Mexico by agreeing to deliver fentanyl and heroin on two occasions in Bakersfield on behalf of the organization. On Aug. 7, 2019, Hernandez delivered approximately 2,000 counterfeit oxycodone pills laced with fentanyl to an undercover agent. On Dec. 13, 2019, Hernandez was arrested while transporting to the same undercover agent in Fresno approximately 60,000 counterfeit oxycodone pills laced with fentanyl, 4.2 pounds of fentanyl powder, and 17.6 pounds of black tar heroin.
Co-defendant Donis Ariel Maldonado, 31, a citizen of Guatemala, was arrested last year for his involvement in the drug conspiracy and is scheduled for a status conference in federal court in Fresno on Sept. 20, 2023.
This case is the product of an investigation by the Federal Bureau of Investigation and the High Impact Investigation Team (HITT) with assistance from the Drug Enforcement Administration. HIIT is a High Intensity Drug Trafficking Area (HIDTA) Initiative, which consists of personnel from the FBI, the California Department of Justice, the California Highway Patrol, the Tulare County Sheriff’s Office, the Kings County Sheriff’s Office, the Madera County Sheriff’s Office, the Fresno County Sheriff’s Office, the Fresno County District Attorney’s Office, and the Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
North Carolina man charged with abusive sexual contact on Delta Airlines flight from AtlantaRead the Press Release
Seattle – A- 69-year-0ld Andrews, North Carolina resident is in federal custody tonight charged with abusive sexual contact on board an aircraft, announced Acting U.S. Attorney Tessa M. Gorman. Jack Allen Roberson was arrested at Sea-Tac airport Sunday evening and will remain in federal custody pending a detention hearing on Wednesday, July 19, 2023.
According to records filed in the case, Roberson was seated next to the 15-year-old victim who was traveling with her guardian. According to the criminal complaint, while Roberson appeared to be sleeping, he allegedly slipped his hand onto the victim’s thigh and ran in up under her skirt and towards her genitals. The victim reported the unwanted touching to her guardian who contacted the flight attendant. Roberson was moved to a different seat. Law enforcement was contacted and met the plane on arrival. Roberson was arrested and taken to the Federal Detention Center at SeaTac.
Abusive sexual contact on an aircraft is punishable by up to two years in prison and a $250,000 fine.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Sanaa Nagi.
Nigerian National Extradited from South Africa for Cyber Fraud Scheme Targeting Tulsa CompanyRead the Press Release
TULSA, Okla. – Sunday Daniel Ganyo, 37, a Nigerian national, made his initial appearance in federal court Friday, after being extradited from South Africa pursuant to a 2020 federal criminal complaint alleging his involvement in a cyber fraud scheme targeting companies in Tulsa and North Carolina. Ganyo faces charges for conspiracy; transportation of stolen goods; means of identification fraud; trafficking in false means of identification; identity theft conspiracy and attempt; aggravated identity theft; mail fraud; wire fraud; and attempt and conspiracy to commit mail and wire fraud.
“Identity theft and computer fraud have a lasting impact on the financial health of the victims and society,” said U.S. Attorney Clinton Johnson. “We are committed to bringing cyber criminals that target Oklahoma companies to justice, even when they hide behind stolen identities across the world and operate in the shadows of cyberspace.”
“The FBI has a long tradition of protecting American companies from these types of schemes and bringing those responsible to justice, no matter where they are located,” said FBI, Oklahoma City, Special Agent in Charge Edward J. Gray. “I’m grateful for the dedicated partnership of the South African authorities to find and arrest Mr. Ganyo, so that he may face charges here in Oklahoma.”
According to court documents, Ganyo is alleged to have sent a computer services company in Tulsa a spoofed email using a fraudulently acquired identity and arranged for the purchase of approximately $400,000 worth of Microsoft Surface Pro Tablets. The fraudulent email was successful, and an order was processed and shipped to a company in Raleigh, North Carolina. Ganyo is alleged to have sent a second spoofed email to the North Carolina company, impersonating the Tulsa company, claiming the order was in error and that someone would retrieve the shipment. The shipment was then retrieved from the North Carolina company, repackaged, and prepared for shipment to South Africa by an unknown coconspirator. However, the FBI was able to intercept the shipment in Memphis, Tennessee, and replace the contents with dummy goods and a tracking device. A controlled delivery was then executed in Johannesburg, South Africa and the defendant was arrested by partners with the South African Police Service. Investigation continues into Ganyo’s possible involvement in similar cyber fraud schemes in other parts of the country.
The Justice Department’s Office of International Affairs worked with law enforcement partners in South Africa to secure the arrest and extradition of Ganyo. The FBI is investigating the case. Assistant U.S. Attorneys Christopher J. Nassar and Thomas Buscemi are prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Members of the public are reminded to be extremely cautious while conducting business on the internet. Check sender emails and URL addresses for irregularities. Use a full-service internet security site that protects your information. Use strong passwords by incorporating at least 10 letters, numbers, and symbols. Keep your software updated because criminals exploit known software flaws. Manage your social media settings and be careful what you share. For instance, if you share your pets name or reveal where you and your spouse met, you might expose the answers to two common security questions. Secure your home network and public networks by using a virtual private network (VPN). Finally, don’t provide personal information to unsolicited individuals or messages. Most business won’t reach out and ask for personal information by phone or email. If they do, tell them you will call them back. Then call the main number to inquire about the request. If you believe you have been a victim of fraud report it to your local police.
Nashua Man Sentenced to over Seven Years in Prison for Attempted Bank RobberyRead the Press Release
CONCORD – A Nashua man was sentenced in federal court for attempting to rob Bank of America and East Hollis Variety in Nashua, U.S. Attorney Jane E. Young announces.
Shawn Soucy, 53, was sentenced by U.S. District Court Chief Judge Landya McCafferty to 89 months in prison and 3 years of supervised release. On March 9, 2023, Soucy pleaded guilty to attempted bank robbery and interference with commerce by threats or violence.
“People who threaten others and attempt to steal from businesses in our communities will be held accountable and significantly punished for their crimes,” said U.S. Attorney Jane E. Young. “The U.S. Attorney’s Office prioritizes working with our federal, state, and local law enforcement partners to keep our communities safe. No one should have to go to work and have their safety and security jeopardized by another person.”
“Shawn Soucy is a dangerous criminal who threatened innocent victims, bank tellers and bystanders, during the commission of his violent crimes,” said Christopher DiMenna, Acting Special Agent in Charge of the FBI Boston Division. “This case should be a warning to others that if you commit a bank robbery or any other violent crime in New Hampshire, you will face serious consequences. The FBI’s Major Offender Task Force is committed to taking violent criminals off the street and stopping them from continuing to victimize others.”
On January 18, 2022, Soucy entered Bank of America and threatened to shoot the teller if that individual did not give him money. He then went to East Hollis Variety, where he held his hand in the shape of a gun and demanded money from the clerk. He did not take any money from either establishment.
The Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Nashua Police Department. Assistant U.S. Attorney Heather A. Cherniske and Anna Dronzek prosecuted the case.
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Muskogee Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jacob Matthew Staton, age 28, of Muskogee, Oklahoma, was sentenced to 50 months in prison for the unlawful possession of a firearm by a convicted felon.
The charges arose from investigations by the Muskogee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On July 28, 2022, Staton pleaded guilty to one count of Felon in Possession of a Firearm.
On May 17, 2022, the Muskogee Police Department attempted to stop Staton when he took off running and threw a backpack he was carrying. When the backpack was recovered, a loaded handgun was found on the ground next to the backpack. At the time Staton possessed the firearm, Staton was a convicted felon.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Jacob Matthew Staton will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Jordan Howanitz represented the United States.
Mobile Man Sentenced in Firearms CaseRead the Press Release
MOBILE, AL – A Mobile man was sentenced to 37 months in prison for being a felon in possession of a firearm and ammunition.
According to court documents, Frederick Oneal Knight, Jr., 34, was arrested by Mobile police officers on August 12, 2022, following a traffic stop of a car that he was driving. Knight admitted that there was a personal-use amount of marijuana in the car, which officers could smell. In a holster on Knight’s waistband, police recovered a Glock .40-caliber pistol equipped with a loaded extended magazine. Officers also removed two loaded magazines from Knight’s pocket. Knight admitted to police that he was a convicted felon, having previously pled down a first-degree murder charge to a felony reckless manslaughter conviction in Mobile County Circuit Court in November 2021. Knight also admitted that he was on probation for the manslaughter conviction at the time he possessed the pistol and ammunition in August 2022. Knight’s prior conviction rendered his possession of any firearms or ammunition illegal under federal law.
In addition to the 37-month prison term, United States District Judge Kristi K. DuBose ordered Knight to serve a three-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge DuBose ordered Knight to pay $100 in special assessments and forfeited his pistol and ammunition to the United States.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile Police Department investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.