Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
10 July 2023
U.S. Attorney Announces Charges Against Co-Director of Think Tank for Acting as an Unregistered Foreign Agent, Trafficking in Arms, Violating U.S. Sanctions Against Iran, and Making False Statements to Federal AgentsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Matthew G. Olsen, the Assistant Attorney General for National Security, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an eight-count Indictment charging GAL LUFT with offenses related to willfully failing to register under the Foreign Agents Registration Act (“FARA”), arms trafficking, Iranian sanctions violations, and making false statements to federal agents. LUFT, a dual U.S.-Israeli citizen, was indicted on November 1, 2022, and arrested on February 17, 2023, in the Republic of Cyprus based on the charges in the Indictment. LUFT subsequently fled after being released on bail while extradition proceedings were pending and remains a fugitive.
U.S. Attorney Damian Williams said: “As alleged, Gal Luft, a dual U.S.-Israeli citizen and co-head of a Maryland think tank, engaged in multiple, serious criminal schemes. He subverted foreign agent registration laws in the United States to seek to promote Chinese policies by acting through a former high-ranking U.S. Government official; he acted as a broker in deals for dangerous weapons and Iranian oil; and he told multiple lies about his crimes to law enforcement. As the charges unsealed today reflect, our Office will continue to work vigorously with our law enforcement partners to detect and hold accountable those who surreptitiously attempt to perpetrate malign foreign influence campaigns here in the United States.”
FBI Acting Assistant Director in Charge Christie M. Curtis said: “As alleged, the defendant engaged in multiple schemes to evade sanctions and laws intended to protect our national security. The FBI is determined to defend our nation by enforcing laws designed to promote transparency of foreign influence within the United States.”
According to the allegations contained in the Indictment, other filings, public information, and statements made during court proceedings:[1]
For years, LUFT, a dual U.S.-Israeli citizen who serves as the co-director of a Maryland-based think tank, engaged, along with others, in multiple international criminal schemes.
First, LUFT conspired with others in an effort to act within the United States to advance the interests of the People’s Republic of China (“China”) as agents of China-based principals, without registering as foreign agents as required under U.S. law. As part of this scheme, while serving as the co-director of a Maryland-based non-profit think tank, LUFT agreed to covertly recruit and pay, on behalf of principals based in China, a former high-ranking U.S. Government official (“Individual-1”), including in 2016 while the former official was an adviser to the then-President-elect, to publicly support certain policies with respect to China without LUFT or Individual-1 filing a registration statement as an agent of a foreign principal with the Attorney General of the United States, in violation of FARA. Among other things, in the weeks before the 2016 U.S. presidential election, LUFT and a co-conspirator (“CC-1”), who is a Chinese national and worked for a Chinese nongovernmental organization affiliated with a Chinese energy company, created a written “dialogue” between CC-1 and Individual-1, in which LUFT wrote Individual-1’s responses and included information that was favorable to China. The dialogue was then published in a Chinese newspaper online and sent to, among others, individuals in the United States, including a journalist and professors at multiple U.S. universities. When LUFT was writing the dialogue, CC-1 told LUFT that “[i]n these articles, we do not want to spill all the beans yet, just enough to let ‘people’ know he [i.e., Individual-1] is in the corridor of power to be. Just broad stroke policy consideration that leaves plenty of room for interpretation and imagination to be filled in later.” After the purported “conversations” were published, LUFT told CC-1 that certain information, favorable to China, had been “tucked between the lines.” Shortly after the 2016 election, LUFT and CC-1 also discussed possible roles Individual-1 might have in the incoming U.S. administration and discussed Individual-1 taking a “silent trip” to China. LUFT responded that “[w]e are debating about his role in the new admin. There are all kinds of considerations . . .We should talk ftf [i.e., face-to-face] as there can be a supremely unique opportunity for china.”
Second, LUFT conspired with others and attempted to broker illicit arms transactions with, among others, certain Chinese individuals and entities. In his role as a broker or middleman, LUFT worked to find both buyers and sellers of certain weapons and other materials, without a license to do so as required under U.S. law, in violation of the Arms Export Control Act. Among other things, LUFT worked to broker a deal for Chinese companies to sell certain weapons to Libya, including anti-tank launchers, grenade launchers, and mortar rounds (which LUFT and his associates referred to in coded language as “toys”). LUFT also worked to broker deals for certain weapons to be sold to the United Arab Emirates, including aerial bombs and rockets. LUFT further worked to broker deals for certain weapons to be sold by a Chinese company to Kenya, including unmanned aerial vehicles (“UAVs”) – and specifically “strike” UAVs, which LUFT acknowledged “[t]he US doesn’t want to sell[, . . .] hence the opportunity.” LUFT also discussed brokering a deal for weapons to Qatar and told CC-1 that Israel was “not a good fit” as the middleman for the deal because it had the “[s]ame problem the [] Q [i.e., Qataris] have w uncle [i.e., the United States]. Need a third party. . . . I will activate.” In his role as a broker for illicit arms deals, LUFT worked on a commission basis and traveled to meetings and received and passed on documentation needed to secure the deals. During a voluntary interview with U.S. law enforcement in which he was asked questions about his involvement in arms trafficking, LUFT made multiple false statements, including that he had not sought to engage in or profit from arms deals.
Third, LUFT conspired with others and attempted to broker deals for Iranian oil – which he directed an associate to refer to as “Brazilian” oil in an effort to conceal the activity and evade sanctions – in violation of U.S. sanctions against Iran and the International Emergency Economic Powers Act. In his role as a broker or middleman, LUFT solicited buyers and passed on pricing and other information. One offer letter for Iranian oil that LUFT received noted that the “origin” of the oil was “Iranian / It can be presented as UAE origin without Iranian papers.” He also assisted in setting up meetings between Iranian representatives and a Chinese energy company for the purpose of discussing oil deals. During a voluntary interview with U.S. law enforcement in which he was asked about his role brokering deals in Iranian oil, LUFT made multiple false statements, including that he had tried to prevent oil deals with Iran and had not been present during meetings with the Chinese energy company and Iranians.
* * *
LUFT, 57, a dual U.S.-Israeli citizen who formerly resided in both Maryland and Israel and is now a fugitive, has been charged with the following offenses, which carry the maximum prison terms listed below. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Count
Charge
Maximum Prison Term
One
Conspiracy to violate the Foreign Agents Registration Act
Five years
Two
Conspiracy to violate the Arms Export Control Act
Five years
Three
Violation of the Arms Export Control Act (relating to Libya)
20 years
Four
Violation of the Arms Export Control Act (relating to the United Arab Emirates)
20 years
Five
Violation of the Arms Export Control Act (relating to Kenya)
20 years
Six
Making false statements
Five years
Seven
Conspiracy to violate the International Emergency Economic Powers Act
20 years
Eight
Making false statements
Five years
Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division. Mr. Williams also thanked the Internal Revenue Service – Criminal Investigation, the Department of Justice’s National Security Division, and the Department of Justice’s Office of International Affairs for their assistance.
If you have any information about LUFT’s whereabouts, please contact your local FBI office or the nearest American Embassy or Consulate. Tips can be reported anonymously and can also be reported online at tips.fbi.gov.
This matter is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Daniel C. Richenthal and Catherine Ghosh are in charge of the prosecution, with assistance from Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Luft Indictment_As FiledTwo Plead Guilty to Federal Drug CrimesRead the Press Release
HUNTINGTON, W.Va. – Edward Daniel Walker Jr., also known as “Jetty,” 38, of Columbus, Ohio, and Jordan Lee Jobe, 29, of Leon, West Virginia, each pleaded guilty today to conspiracy to distribute heroin.
According to court documents and statements made in court, from about April 2022 to about September 25, 2022, Walker and Jobe participated in a conspiracy to distribute heroin in the Leon area of Mason County. Walker admitted to selling heroin to customers directly and distributing quantities of heroin to other individuals for them to sell at his direction. Jobe admitted to distributing heroin for Walker and transporting Walker to obtain heroin.
On September 25, 2022, law enforcement officers conducted a traffic stop on Interstate 64 in Hurricane of a vehicle driven by Jobe in which Walker was a passenger. Officers searched the vehicle and found approximately 105 grams of suspected heroin and a firearm. Walker and Jobe each admitted to intending to sell the heroin.
Following the traffic stop, officers executed a search warrant that same day at a Barboursville motel room where Walker and Jobe were staying. Officer seized approximately 204 grams of suspected heroin, two firearms and $1,000 during that search. Walker and Jobe each admitted to intending to sell the heroin, and further admitted that the cash was proceeds from previous drug sales.
On March 31, 2023, officers executed a search warrant at a Durham Road residence in Leon, where they arrested Walker and Jobe. Officers seized approximately 135 grams of suspected heroin found at the residence and $2,000 on Walker’s person. Walker and Jobe each admitted to intending to sell the heroin. Walker further admitted that the cash was proceeds from previous drug deals.
Walker and Jobe are scheduled to be sentenced on October 16, 2023, and each faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the Drug and Violent Crime Task Force West.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie Taylor is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-40.
###
Two Men Indicted for Conspiracy to Straw Purchase FirearmsRead the Press Release
BOSTON – Two men have been indicted by a federal grand jury in Boston for allegedly conspiring to straw purchase firearms in Maine and traffic the firearms to Massachusetts.
Traveyon Richardson, 25, of Bangor, Maine and Breon Stroup, 26, of Fall River, Mass., were indicted on one count each of conspiracy to straw purchase firearms. Richardson was also indicted on one count of trafficking of firearms and Stroup was indicted on one count of felon in possession of firearms and ammunition. The defendants will appear in federal court in Boston at a later date.
According to the charging document, in September 2022, Stroup allegedly used Snapchat to ask Richardson to purchase two specific firearms for him in Maine, where Richardson resides. It is alleged that the following day, Stroup sent Richardson a Cash App money transfer and Richardson purchased the firearms online. Then, Richardson allegedly picked up the firearms from the federal firearm license dealer and drove the firearms to Massachusetts in October 2022.
It is further alleged that approximately two weeks later, in October 2022, Richardson and Stroup had a phone conversation where Stroup assured Richardson that he had deleted his Snapchat account. When Richardson allegedly inquired about Stroup’s iCloud account, Stroup responded that he had deleted his iCloud account also.The charge of conspiracy to straw purchase firearms provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of $250,000. The charge of trafficking of firearms provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Valuable assistance was provided by the Fall River Police Department and the Maine State Police. Assistant U.S. Attorney Lucy Sun of Levy’s Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Men Convicted of Using Credit and Debit Card Skimmers at Gas Stations to Steal Nearly $200,000 in Fresno and Southern CaliforniaRead the Press Release
FRESNO, Calif. — Akop Dongelyan, 47, of Glendale, and Artak Vardanyan, 40, of Burbank, pleaded guilty today to conspiring to commit credit and debit card fraud, U.S. Attorney Phillip A. Talbert announced.
According to court records, in November 2015, Dongelyan and Vardanyan went on a crime spree in Fresno and Southern California where they stole multiple victims’ credit and debit card information through skimmers placed at gas stations. They then used that information to make counterfeit credit and debit cards and fraudulently withdraw $198,000 from the victims’ accounts.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Dongelyan is scheduled to be sentenced on Nov. 6, 2023, and Vardanyan is scheduled to be sentenced on Oct. 16, 2023, by U.S. District Judge Ana de Alba. They each face a maximum statutory penalty of five years in prison and $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tampa Cocaine Dealer Sentenced to over 7 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Rafael Jose Gonzalez Alomar (39, Tampa) to seven years and three months in federal prison for possessing over 500 grams of cocaine with the intent to distribute it. Gonzalez Alomar had pleaded guilty on March 28, 2023.
According to court documents, in February 2022, officers conducted a series of controlled purchases of cocaine from Gonzalez Alomar at his Tampa home. On March 14, 2022, officers executed a search warrant at Gonzalez Alomar’s home and seized more than two kilograms of cocaine, two firearms, and $93,842 in cash. Alomar Gonzalez admitted that the items belonged to him.
This case was investigated by the Drug Enforcement Administration and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
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.
Springfield Man Sentenced to Six Years in Prison for Armed RobberyRead the Press Release
BOSTON – A Springfield man has been sentenced in connection with an armed robbery of a convenience store and firearms charges.
Emilio Rivera, 34, was sentenced on July 6, 2023 by U.S. District Court Judge Mark G. Mastroianni to six years in prison followed by three years of supervised release. In March 2019, Rivera pleaded guilty to one count of interference with commerce by robbery, one count of using a firearm in relation to crime of violence and one count of being a felon in possession of a firearm and ammunition.
On Nov. 14, 2019, Rivera and, allegedly, co-defendant Alfredo Aldeco robbed a clerk in a West Springfield convenience store at gunpoint. When law enforcement later executed a search warrant on Rivera’s home, they found the firearm used in the robbery along with another firearm and ammunition, owned by Rivera. At the time, Rivera was prohibited from possessing a firearm or ammunition due to a prior felony conviction.
Aldeco has pleaded not guilty and is awaiting trial.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement. Valuable assistance in the investigation was provided by the Massachusetts State Police and the West Springfield, Holyoke, Agawam, Chicopee, Northampton and Springfield Police Departments. Assistant U.S. Attorney Deepika Bains Shukla of Levy’s Springfield Branch Office prosecuted the case.
Sarasota Restaurant Owner Pleads Guilty to Failing to Provide Information to the IRSRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Karl Knocker has pleaded guilty to three counts of failing to provide information to the Internal Revenue Service (IRS) as required by law relating to his income tax liability. Knocker faces a maximum penalty of three years in federal prison. A sentencing date has not yet been set.
According to the plea agreement and information presented at the plea hearing, Knocker owned and managed a restaurant in Sarasota. Beginning at least as early as August 2013, Knocker and his partner and co-owner of the restaurant, Madeline Nikolson, instituted a scheme to defraud the IRS by removing the records of daily cash sales from point-of-sale registers at the restaurant, leaving the record to consist only of credit card sales. The owners kept the true record of their sales and income secret and did not disclose it to the IRS, as required by the Internal Revenue Code and regulations. The two restaurant owners provided this falsified record of sales income to tax preparers who prepared both their personal income tax returns and their corporate tax returns for tax years 2016, 2017, and 2018. As a result, they falsified and removed any reference to approximately $726,105 in sales income from their corporate and personal tax returns for those tax years, resulting in over $100,000 of taxes due and owing on those sums of unreported income.
Nikolson previously pleaded guilty for her role in this case. Her sentencing hearing is scheduled for August 1, 2023.
This case was investigated by the IRS-Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Rockport Business Owner Charged with Filing False Tax ReturnsRead the Press Release
BOSTON – The owner of a local landscaping company was charged today and has agreed to plead guilty in connection with a multi-year scheme to underreport income on his tax returns.
Steven O’Brien, 70, of Rockport, was charged with five counts of filing false tax returns. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, O’Brien, the owner of Steve’s Landscaping, Inc., cashed customer checks instead of depositing customer payments into his business bank accounts. It is alleged that O’Brien then did not report his income from the cashed checks on his corporate tax filings and personal tax returns for tax years 2016 through 2021, resulting in an income tax loss of more than $368,000.
The charge of filing false tax returns provides for a sentence of up to three years in prison, up to one year of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Kriss Basil of Levy’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Red Oak Man Sentenced for Drug Distribution OffensesRead the Press Release
COUNCIL BLUFFS, IA -- A Red Oak man was sentenced on July 6, 2023 for Conspiracy to Distribute a Controlled Substance and Attempted Possession with Intent to Distribute a Controlled Substance.
Donald Eugene Reed, 45, was sentenced to 212 months in prison following his plea of guilty to both counts. Reed must serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
According to court documents, Iowa Department of Narcotics Enforcement (DNE) completed several controlled buys from Reed in September 2022, purchasing methamphetamine and marijuana. The United States Postal Inspectors intercepted a package addressed to Reed’s home in Red Oak, containing four pounds of methamphetamine. DNE also learned that approximately 15 other similar packages had been previously delivered to Reed.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa Division of Narcotics Enforcement investigated the case.
Readout of Deputy Attorney General Lisa O. Monaco’s Trip to Tokyo for G7 and ASEAN Justice Ministers MeetingsRead the Press Release
Deputy Attorney General (Deputy AG) Lisa O. Monaco traveled to Tokyo July 6-8 to highlight the importance of international partnerships and support for the rule of law at a Group of Seven (G7) Justice Ministers’ Meeting and a G7 Interface Meeting with Justice Ministers and Attorneys General from the Association of Southeast Asian Nations (ASEAN).
In remarks at the ASEAN Interface on July 7, the Deputy AG emphasized the critical importance of strong international partnerships to combating intensifying global threats from cybercrime and transnational organized crime, particularly narcotics trafficking. She noted how the Justice Department’s prosecutors and investigators are working with global partners to disrupt the criminal ecosystem that allows increasingly brazen cyber criminals and malicious nation-state actors to flourish. She also encouraged her counterparts to join the Justice Department’s campaign against drug cartels that fuel violence around the world, warning that the United States is facing a deadly threat from fentanyl and other illicit synthetic drugs. She said:
“To my colleagues — I urge you to recognize that while you may not see this deadly killer now — you will. Fentanyl trafficking is a serious threat to all of us and is an area ripe for future cooperation.”
In the meeting of G7 Justice Ministers, the Deputy AG reiterated her warning about fentanyl and acknowledged the steadfast commitment of G7 nations to support Ukraine and resolve to hold Russia accountable for the war crimes and atrocities it is perpetrating in its war of aggression in Ukraine. She joined G7 Justice Ministers in announcing new efforts to help Ukraine strengthen the rule of law and fight corruption, including through a new G7 Anti-Corruption Task Force for Ukraine, which the Justice Department will support as part of its continued response to Russia’s unprovoked and brutal war in Ukraine.
Pointing to the Disruptive Technology Strike Force she launched earlier this year, the Deputy AG also encouraged her G7 counterparts to work together to deny repressive regimes the technology they abuse and exploit to monitor, harass, and intimidate, warning that:
“Our adversaries are not content with the status quo — they are increasingly creative, brazen, and malicious in their efforts to weaken democracies, to sow discord, and to spread corruption across the globe. Only by defending the rule of law, protecting civil liberties, and holding fast to the values that underpin our countries can we defeat these autocratic regimes — and we can and must do these things together.”
You can read more here about the commitments made by G7 Justice Ministers to support Ukraine, enhance cooperation among the G7 nations to promote the rule of law, and connect the G7 and Indo-Pacific in the fields of law and justice.
While in Tokyo, the Deputy AG held a number of bilateral meetings, including with Justice Ministers and other counterparts from the United Kingdom, the Philippines, France, Italy, Germany, Japan, and Canada, as well as with the Executive Director of the United Nations Office on Drugs and Crime (UNODC). In all of these discussions, the Deputy AG emphasized the importance of continuing to invest in international partnerships, which are key to dismantling deadly narcotics trafficking networks, disrupting cybercrime and threats like ransomware, and preventing the misuse of critical technologies by repressive regimes to undermine democracies.
Joined by U.S. Ambassador to Japan, Rahm Emanuel, the Deputy AG met with the Japanese Minister of Justice, Ken Saitō, to thank him for his leadership of the G7 Justice Ministerial and for his hospitality in Tokyo. She met separately with Deputy Commissioner General of the Japanese National Police, Yoshimi Ogata, and underscored the Justice Department’s deep appreciation for the strong collaboration with Japanese law enforcement and justice partners in combating shared global threats.
Before leaving Tokyo, the Deputy AG visited the American Embassy for a briefing with U.S. officials on their work in-country and to thank them for their dedicated public service.
Rapid City Man Sentenced for Illegally Possessing a Firearm and AmmunitionRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm and Ammunition by a Prohibited Person was sentenced on July 7, 2023, by U.S. District Judge Jeffrey L. Viken.
Duane Starkey, age 33, was sentenced to two years and six months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Starkey was indicted by a federal grand jury in September of 2022 and pleaded guilty in March of 2023.
The conviction stems from Starkey, a previously convicted felon who is prohibited from possessing firearms, being in possession of a SCCY 9mm caliber semi-automatic pistol and Remington 9mm Luger ammunition in August of 2022 in Rapid City, which was found after Starkey came into contact with law enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Starkey was immediately remanded to the custody of the U.S. Marshals Service.
Pittsburgh Resident Sentenced to 90 Months Imprisonment for Attempted Receipt of Material Involving the Sexual Exploitation of a ChildRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, PA, has been sentenced in federal court to 90 months imprisonment followed by 7 years of supervised release on his conviction of attempted receipt of material involving the sexual exploitation of a child, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Thomas Hunt, 32 on July 10, 2023.
According to information presented to the court, Hunt attempted to meet who he believed to be a 13-year-old minor in person and attempted to receive material, from this minor, involving the sexual exploitation of minors from September 13, 2023, to October 13, 2021. Instead, Hunt was speaking to an undercover law enforcement officer.
Assistant United States Attorney Michael L. Mitchell prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Hunt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pittsburgh Resident Pleads Guilty to Concealing a Material Fact in Connection with a Naturalization MatterRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to a charge of concealing a material fact in connection with a naturalization matter, United States Attorney Eric G. Olshan announced today.
Man Ho, age 34, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Man Ho, a citizen of Vietnam, married a U.S. citizen in July 2011 for the sole purpose of gaining permanent residency in the United States and that in matters before immigration authorities she failed to advise that the marriage was a sham marriage.
The law provides for a total sentence of not more than 6 months in prison, a fine of not more than $5,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Yvonne Saadi and DeMarr Moulton prosecuted this case on behalf of the government.
The Bureau of Immigration and Customs Enforcement and the United States Citizenship and Immigration Services conducted the investigation that led to the prosecution of Man Ho.
Pine Ridge Man Sentenced to Life ImprisonmentRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Pine Ridge, South Dakota, man convicted of First Degree Murder and Discharge of a Firearm During the Commission of a Crime of Violence. The sentencing took place on July 6, 2023.
Colton Bagola, 30, was sentenced to life in federal prison for the First Degree Murder charge and a consecutive 10 year sentence in federal prison on the Firearm charge. He was also ordered to pay $200 in special assessments to the Federal Crime Victims Fund.
Bagola was indicted for the charges by a federal grand jury in January of 2020. He was found guilty following a federal jury trial in Rapid City, South Dakota, in October of 2022.
The conviction stems from Bagola shooting a 30-year-old male in the back of the head killing him on December 17, 2019, at Pine Ridge.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court.
This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Megan Poppen and Gina Nelson prosecuted the case.
Bagola was immediately remanded to the custody of the U.S. Marshals Service.
Pine Ridge Man Sentenced to 15 Years in Federal Prison for Drug ConspiracyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a Pine Ridge, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on June 30, 2023, by U.S. District Judge Jeffrey L. Viken.
Alex Jaramillo, age 36, was sentenced to 15 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Jaramillo was indicted by a federal grand jury in July of 2021 and pleaded guilty in March of 2023. The conviction stems from Jaramillo conspiring with others to distribute methamphetamine in South Dakota and elsewhere between March and June of 2021.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the South Dakota Division of Criminal Investigation, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Jaramillo was immediately remanded to the custody of the U.S. Marshals Service.
Petersburg, Illinois, Man Charged with Sexual Exploitation of a Minor, Receipt, and Distribution of Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A grand jury indicted a Petersburg, Illinois, man, Adam L. Power, 29, of the 500 block of 8th Street in Petersburg, Illinois, on July 7, 2023, for producing, distributing, and receiving child pornography.
Court documents allege that Power requested, traded, and received child pornography from minors through the use of online applications. Power was identifying himself as a minor female to get minor males to produce sexually explicit images and videos of themselves. Additionally, it is alleged Power distributed as well as received visual depictions of minors engaged in sexually explicit conduct.
Power was originally arrested in Petersburg, Illinois, on March 21, 2023, and charged with possession of child pornography by the Menard County State’s Attorney. He was released on bond with electronic monitoring. On June 30, 2023, Power was arrested by Department of Homeland Security Agents on a federal warrant and was subsequently indicted by a federal grand jury. He is currently in the custody of the U.S. Marshals.
If convicted, the offense of sexual exploitation of a minor carries a statutory penalty of at least fifteen years to a maximum of thirty years’ imprisonment; for both receipt and distribution of child pornography, the penalty is at least five years to a maximum of twenty years’ imprisonment.
Agencies participating in the investigation include the Department of Homeland Security, Illinois Attorney General’s Office, Athens Police Department, Illinois State Police, Petersburg Police Department, the Menard County Sheriff’s Office, and the Menard County States Attorney. Assistant U.S. Attorney Tanner K. Jacobs is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Anyone who may have information about potential victims is asked to contact Springfield Homeland Security Investigations at 217-547-2114 or [email protected].
This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Passaic County Husband and Wife Sentenced for Sex TraffickingRead the Press Release
NEWARK, N.J. – A husband and wife from Passaic County, New Jersey, have been sentenced to prison for their roles in a sex trafficking scheme, U.S. Attorney Philip Sellinger announced today.
Enna Gonzalez, 58, of Paterson, New Jersey, was sentenced on July 6, 2023, by U.S. District Judge Madeline Cox Arleo to four years in prison and five years of supervised release. Gonzalez previously pleaded guilty to an indictment charging her with conspiracy to commit sex trafficking.
Gonzalez husband, Jean Noriega, 52, of Paterson, was sentenced June 14, 2023, to 20 years in prison and five years of supervised release. Noriega previously pleaded guilty to an indictment charging him with conspiracy to commit sex trafficking and the sex trafficking of six different victims. Judge Arleo imposed the sentences in Newark federal court.
According to documents filed in this case and statements made in court:
From 2016 through 2017, Noriega coerced multiple women to engage in commercial sex acts in New Jersey and New York. Noriega used violence, threats of violence, threats of drug withdrawal, and other means, to compel the victims to engage in commercial sex for his profit, including after his incarceration in New York on unrelated charges in 2017. Gonzalez helped Noriega control the victims through various means, including, collecting the proceeds of the commercial sex acts. She also carried out Noriega’s sex trafficking activities while Noriega was incarcerated.
U.S. Attorney Sellinger credited special agents of the FBI’s Newark Child Exploitation Human Trafficking Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, and the Passaic County Prosecutor’s Office’s Human Trafficking Unit, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to the sentencings.
The government is represented by Assistant U.S. Attorney Sophie E. Reiter of the U.S. Attorney’s Cybercrime Unit in Newark.
Omaha Man Sentenced for an Interstate Domestic Violence OffenseRead the Press Release
COUNCIL BLUFFS, IA – An Omaha man was sentenced on Thursday, July 6, 2023, for interstate domestic violence – causing travel of a victim.
Ruben Toledo, Jr., 28, was sentenced to 60 months in prison following his guilty plea. According to court documents, on October 23, 2021, Toledo assaulted his then girlfriend at a bar in downtown Omaha then forced her into his car and drove from Omaha, Nebraska to Council Bluffs, Iowa and continued the assault. After his prison sentence, Toledo must serve a three-year term of supervised release. There is no parole in the federal system.
When he committed this crime, Toledo was on supervised release for a 2015 federal conviction for conspiracy to distribute a controlled substance. The Court also revoked Toledo’s supervised release and sentenced him to 18 months’ imprisonment, to be served consecutively to the 60-month sentence.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department, the Omaha Police Department, the Glenwood Police Department, Mills County Sheriff’s Office, and the Federal Bureau of Investigation investigated the case.
If you or someone you know is experiencing domestic violence, contact the National Domestic Violence Hotline at 1-800-799-7233 (SAFE), or the Iowa Coalition Against Domestic Violence at 1-800-770-1650. Additional resources for victims and survivors of domestic violence can be found on the Resources page of the National Coalition Against Domestic Violence website at https://ncadv.org/resources.
North Vernon Man Charged with Engaging in an Unlicensed Firearms Dealing Business After Selling More than 500 Guns for over $350,000Read the Press Release
INDIANAPOLIS- A federal grand jury has returned an indictment charging David Joseph Mull, 51, of North Vernon, Indiana, on one count of unlicensed firearm dealing.
As alleged in the indictment, Mull is responsible for selling more than 500 firearms in exchange for over $350,000 to Individual A, and 90 firearms in exchange for $56,850 to Individual B. The firearms were allegedly purchased by Mull from gun shows and sold to other individuals. Mull was allegedly aware that the firearms he sold would be transported to Mexico.
On May 25, 2016, the Bureau of Alcohol, Tobacco, Firearms and Explosives issued Mull with a cease-and-desist letter advising him that it was unlawful to engage in the business of dealing firearms without a license.
During a firearms sale on March 9, 2023, Individual B asked Mull why he did not have a brick-and-mortar business, to which Mull replied, “Like a store? I don't want nobody to know. I’m probably like you, I don't want nobody to know about it. Hopefully we can continue to do a bunch of business; I’ll keep on getting stuff.”
U.S. Attorney for the Southern District of Indiana, Zachary A. Myers, Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, Justin Campbell, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office, and Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office made the announcement.
“Firearms trafficking investigations are a priority of the Department of Justice, because we know that illegal gun sales fuel violence in our communities and around the world,” said U.S. Attorney Myers. “We will continue to work with the ATF, IRS, DEA, and all our law enforcement partners to aggressively investigate and prosecute illegal gun trafficking.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service, and the Drug Enforcement Administration investigated this case. If convicted, Mull faces up to five years in federal prison. The government also seeks to forfeit over 1,000 firearms seized from Mull as property involved in the charged offense. A federal district court judge will determine the actual sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Myers thanked Assistant United States Attorneys Kelsey L. Massa and Michelle P. Brady, who are prosecuting this case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment or criminal complaint are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
New Orleans Woman Sentenced for Theft of Government FundsRead the Press Release
NEW ORLEANS – DEDRA BRIGHT (“BRIGHT”), age 64, of New Orleans, Louisiana, was sentenced on July 5, 2023 to payment of restitution and probation for theft of government funds, in violation of Title 18, United States Code, Section 641, announced United States Attorney Duane A. Evans.
According to court documents, from November 2008 to November 2020, BRIGHT knowingly accessed and converted approximately $194,127.80 in Social Security Administration (“SSA”) and $1,200 in Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) funds. The funds were intended for BRIGHT’s mother, who was a recipient of social security funds before she passed away in 2008. BRIGHT continued withdrawing and spending SSA and CARES Act funds from her mother’s account after her 2008 death, until the SSA learned of the mother’s death and ceased the payments.
At sentencing, U.S. District Court Judge Ivan L.R. Lemelle sentenced BRIGHT to 5 years of probation, restitution in the amount of $194,327.80 to the SSA and $1,200 to the IRS, no fine, and a mandatory special assessment fee of $100.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General, with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Nicholas Moses, Health Care Fraud Coordinator, and Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Nebraska Man Sentenced for Drug and Firearm OffensesRead the Press Release
COUNCIL BLUFFS, IA – A Nebraska man was sentenced on Thursday, July 6, 2023, to 180 months in federal prison for charges of possession with intent to distribute controlled substances, carrying a firearm during and relation to a drug trafficking crime, prohibited person in possession of a firearm, and possession of a firearm with an obliterated serial number.
According to court documents and evidence presented at trial, on August 6, 2021, a Council Bluffs Police officer found Kyle G. Ashmore, 37, in a car in a motel parking lot around 3:30am. The officer saw a baggie of marijuana in plain view. During the search of the vehicle, the officer found a loaded .40 caliber Smith and Wesson handgun, a box of ammunition, LSD, fentanyl, cocaine, buprenorphine, psilocyn, and drug paraphernalia.
Following a two-day trial in November 2022, a jury found Ashmore guilty of the drug charges. Following a two-day trial in February 2023, a jury found Ashmore guilty of the gun charges. Ashmore must serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department, the Southwest Iowa Narcotics Enforcement Task Force, and the Department of Narcotics Enforcement investigated the case.
Muskogee Man Sentenced for Assault and Firearms CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael Ray Zuniga, age 29, of Muskogee, Oklahoma, was sentenced to a term of imprisonment of 40 months for one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, and a term of imprisonment of 120 months for one count of Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence. The sentences were ordered to run consecutively.
The charges arose from investigations by the Muskogee Police Department and the Oklahoma State Bureau of Investigation.
On July 19, 2022, Zuniga pleaded guilty to a superseding indictment of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, and Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence. At the plea hearing, Zuniga admitted to striking the victim in the face with a 9 mm caliber firearm and firing the gun at the victim. The crimes occurred within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Timothy D. DeGiusti, Chief U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting by appointment, presided over the hearing in Muskogee, Oklahoma. Zuniga will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve the non-paroleable sentence.
Assistant United States Attorney Benjamin D. Traster represented the United States at the sentencing hearing.
Michigan Man Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Willie Renard Craft, also known as “Nut,” 47, of Pontiac, Michigan, pleaded guilty today to possession with intent to distribute fentanyl.
According to court documents and statements made in court, on December 16, 2022, law enforcement officers executed a search warrant at Craft’s Seventh Avenue residence. Craft told the officers there was a controlled substance in the kitchen cabinet. Officers found approximately 74 grams of fentanyl and drug packaging materials in the cabinet. Officers also found a loaded Taurus 856 .38-caliber revolver on a shelf in Craft’s bedroom, and $1,800 in Craft’s possession. Craft admitted to possessing and intending to distribute the fentanyl, and further admitted that the cash was proceeds from selling fentanyl.
Craft is scheduled to be sentenced on October 16, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Violent Crime and Drug Task Force, the Huntington Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Finney is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-43.
###
Methamphetamine Trafficker Who Purchased Drugs from Mexico Sentenced to Federal PrisonRead the Press Release
A man who purchased two pounds of methamphetamine to sell in Iowa was sentenced today to more than twelve years in federal prison.
Drew Scarborough, age 25, from Evansdale, Iowa, received the prison term after a December 28, 2022 guilty plea to conspiracy to distribute a controlled substance.
Information at sentencing showed that, in 2020, Scarborough became involved in a large-scale drug trafficking organization with ties to organized crime in Mexico. Scarborough purchased two pounds of methamphetamine from a source in Mexico, but due to his failure to pay the source, he was unable to obtain additional methamphetamine. Scarborough had previously threatened to kill another member of the drug conspiracy on behalf of the source.
Scarborough was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Scarborough was sentenced to 150 months’ imprisonment, and he must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Scarborough is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Dillan Edwards and Emily Nydle. This case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Tri-County Drug Enforcement Task Force, the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Black Hawk County Sheriff’s Office, the Green County Sheriff’s Office, and the Elbert County, Colorado Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-02049.
Follow us on Twitter @USAO_NDIA.
Methamphetamine Distributor Sentenced to over 10 Years in PrisonRead the Press Release
EAST ST. LOUIS, Ill. – Jeremy P. Devaisher, 42, of Brighton, IL, was sentenced to 130 months in prison for methamphetamine-related charges on Thursday, July 6, 2023. He was fined $200 and must also pay $100 in special assessments. Following his release from federal prison, Devaisher must complete five years of supervised release.
Devaisher was arrested in Alton in January of 2022, while he was still on mandatory supervised release from the Illinois Department of Corrections for Unlawful Use of a Weapon by a Felon. Officers from the Alton Police Department were conducting a traffic stop of a vehicle that Devaisher was a passenger in when the vehicle suddenly pulled into a residential driveway. Devaisher exited the vehicle, refused the officer’s commands to stop and stay with the vehicle, and then attempted to enter the residence, which did not belong to him. Once Devaisher entered the house he was tased, arrested, and discovered to be in possession of a large amount of crystal methamphetamine and packaging materials for drug distribution.
A federal grand jury indicted Devaisher on March 22, 2022, with one count of possession with intent to distribute methamphetamine, and he pled guilty on March 20, 2023.
“Methamphetamine is dangerously addictive, it ruins lives, and it harms communities across southern Illinois,” said U.S. Attorney Rachelle Aud Crowe. “We work with our local, state, and federal law enforcement partners to ensure that repeat offenders face heightened penalties for choosing crime over peaceful rehabilitation.”
“I am incredibly proud of the Alton Police Officers who helped put a stop to Devaisher’s distribution of methamphetamine,” said Alton Police Chief Jarrett Ford. “This case truly highlights the excellent working relationship that the Alton Police Department shares with our federal law enforcement partners, including the prosecutors in the U.S. Attorney’s Office.”
The Alton Police Department conducted the investigation, the Drug Enforcement Administration conducted forensic chemistry testing, and Assistant United States Attorney John Trippi prosecuted the case.McDowell County Man Pleads Guilty to Fentanyl CrimeRead the Press Release
BLUEFIELD, W.Va. – Myron Dwayne Brown, also known as “Mylo,” 44, of Welch, pleaded guilty today to distribution of fentanyl.
According to court documents and statements made in court, on February 22, 2022, Brown sold a substance containing fentanyl to a confidential informant at a Havaco residence in McDowell County. Brown admitted to that transaction and further admitted to selling controlled substances at the Havaco residence on December 29, 2021, and February 28, 2022. Brown was aided and abetted by another individual during the December 29, 2021, transaction and the controlled substance sold was confirmed by the West Virginia State Police Forensic Laboratory to contain butonitazene, a federal Schedule I controlled substance.
Brown is scheduled to be sentenced on October 2, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Southern Regional Drug and Violent Crime Task Force.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:23-cr-35.
###
Marion Man Sentenced to Six Months in Federal Prison for Being a Felon in Possession of FirearmsRead the Press Release
A felon who possessed firearms was sentenced today to six months in federal prison.
Tyler Maus, age 30, of Marion, received the sentence after a December 8, 2022 guilty plea to one count of being a felon in possession of firearms. At the plea hearing, Maus admitted that, on December 5, 2021, he possessed four pistols after having been convicted of four felonies.
Maus was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Maus was sentenced to six months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Hiawatha Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Marion Police Department, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 22-49.
Follow us on Twitter @USAO_NDIA.
LeFlore County Resident Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that David Glen Berryhill, Jr., age 50, of LeFlore County, Oklahoma entered a guilty plea to an Indictment of one count of Possession with Intent to Distribute Methamphetamine.
The Indictment alleged that on or about January 25, 2023, Berryhill possessed at least 500 grams of a mixture and substance containing a detectable amount of methamphetamine.
The charge arose from an investigation by the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics, and the Oklahoma Highway Patrol. According to law enforcement reports, Berryhill was stopped by an Oklahoma Highway Patrol Trooper for a traffic violation on Highway 69 near Checotah, Oklahoma. During the stop, a certified drug dog alerted on Berryhill’s vehicle for the presence of narcotics. Troopers subsequently found approximately 2 kilograms of methamphetamine in the vehicle.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Berryhill will remain in the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Erin Cornell represented the United States.
Kratom Company and Owner Plead GuiltyRead the Press Release
NEWS RELEASE SUMMARY – July 10, 2023
SAN DIEGO – Nine2Five LLC and its owner, Sebastian Guthery, pleaded guilty in federal court today to felony crimes related to the illegal importation of kratom, an opioid-like plant, and the subsequent laundering of proceeds from the sale of the illegally imported product.
Mitragyna speciosa, commonly known as kratom, is indigenous to Southeast Asia. Its leaves, when ingested, have both narcotic and stimulant-like effects. According to the U.S. Food and Drug Administration (FDA), the use of kratom is associated with serious health risks, including but not limited to seizures, liver damage, addiction, and death. Side effects may also include respiratory depression, nervousness, agitation, aggression, sleeplessness, hallucinations, delusion, tremors, loss of libido, constipation, nausea, vomiting, and severe withdrawal signs and symptoms.
On February 28, 2014, the FDA issued Import Alert 54-15, which directed inspectors to detain products that appeared to contain kratom as well as named product from specified firms without inspection, and to deny them entry into the United States. The Import Alert stated that the FDA had determined kratom to be a new dietary ingredient under section 413(d) of the Act, and deemed products intended for human consumption containing kratom to be adulterated food under section 402(f)(1)(B) of the Act because there was inadequate information to provide reasonable assurance that the new dietary ingredient kratom did not present a significant or unreasonable risk of illness or injury. This Import Alert remains in effect.
In pleading guilty, defendant Guthery admitted that, as the owner and operator of Nine2Five LLC, he caused the importation of 9,800 kg of kratom from Indonesia through a consignee named Middleton Central, LLC, by means of an invoice which falsely declared the product to be Flora Food Botanical Soil Conditioner (Eucheuma spinosum)/fertilizer, without reasonable cause to believe that was true. The invoice submitted on May 16, 2018, with the entry package, stated that the value of the goods was $61,728.
Defendant Nine2Five, LLC, in pleading guilty to money laundering, admitted that a Nine2Five, LLC. employee wired $60,000 from an account of Nine2Five, LLC at Wells Fargo Bank in San Diego, California, to Bank Mandiri in Indonesia for the cost of the purchase, transportation and importation of kratom from Indonesia on May 15, 2018. The funds constituted criminally derived proceeds of the illegal importation of kratom in the manner acknowledged by Guthery in his plea, which constituted a violation of Title 18, United States Code, Sections 542 and 545.
“Making false declarations about the nature of products imported into the United States will not be tolerated,” said U.S. Attorney Randy Grossman. “The Department of Justice and our agency partners are committed to protecting our nation from importation crimes and related offenses.” Grossman thanked the prosecution team plus the Internal Revenue Service, Homeland Security Investigations, and Customs and Border Protection agents for their excellent work on this case.
“HSI San Diego is deeply immersed in the global fight against illegal importation and money laundering,” said Chad Plantz, special agent in charge for HSI San Diego. “Attempting to smuggle even more harmful substances into our communities will not be tolerated. Further, deceiving law enforcement is illegal and by doing so only increases the severity of penalties. HSI is actively engaged with law enforcement partners and task forces to bring perpetrators who knowingly and willingly break the law to justice.”
“Sebastian Guthery and Nine2Five LLC went unchecked by mislabeling imports of kratom to evade detection and inspection by U.S. authorities and laundering the criminally derived proceeds internationally to purchase more kratom. The import laws and regulations are in place to protect our citizens and our nation,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation Los Angeles Field Office. “This should put the kratom industry on notice, illegally importing products into the United States for your own financial gain is a crime and disregarding U.S. import laws and import alerts will not go unnoticed, you will be held accountable.”
Sentencing for both defendants is scheduled to take place on October 6, 2023 at 9:30 a.m. before U.S. District Judge Todd W. Robinson.
DEFENDANTS Case Number 23cr179-TWR
Nine2Five, LLC Formed: 2012 Carlsbad, CA
Sebastian Guthery Age: 40 Carlsbad, CA
SUMMARY OF CHARGES
Defendant Sebastian Guthery
Entry of Goods by Means of False Statement – Title 18, U.S.C., Section 542
Maximum Penalty: Two years in prison and/or $250,000 fine
Defendant Nine2Five LLC
Money Laundering – Title 18, U.S.C., Section 1957
Maximum penalty: Five years of probation and $500,000 fine for an organization
AGENCIES
Internal Revenue Service
Homeland Security Investigations
Customs and Border Protection
Kern County Man Charged in Operation Red Reaper Sentenced to over 11 Years in Prison for Methamphetamine DistributionRead the Press Release
FRESNO, Calif. — Ernesto Zibray, 34, of Delano, was sentenced today to 11 years and three months in prison for distribution of over 500 grams of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Zibray was charged as part of Operation Red Reaper, a multi-agency operation that resulted in three federal cases charging a total of 23 individuals. The months-long investigation uncovered evidence that the Nuestra Familia prison gang and its associates were responsible for large-scale trafficking of methamphetamine and other controlled substances, as well as various firearms offenses and other violent crimes in Kings and Tulare Counties.
On May 6, 2019, Zibray, who was on probation for another drug trafficking offense, distributed 2 pounds of methamphetamine to a co-defendant in Delano. Moments later, investigators conducted a traffic stop on the car in which the co-defendant was traveling, searched the car, and found the methamphetamine.
This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Kings County Gang Task Force, the California Department of Justice, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Kings County District Attorney’s Office, and the Tulare County Sheriff’s Office. Assistant U.S. Attorney Justin J. Gilio 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 U.S. Department of Justice 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.
KC Chiefs ‘Superfan’ Charged with Bank TheftRead the Press Release
KANSAS CITY, Mo. – An Overland Park, Kansas, man popularly known as Kansas City Chiefs superfan “ChiefsAholic,” who has been a fugitive from justice for the past four months, has been charged in federal court with bank theft for one of a string of robberies he is suspected of committing.
Xaviar Michael Babudar, 28, was charged with one count of bank theft and one count of transporting stolen property across state lines in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on May 24, 2023. The federal criminal complaint was unsealed and made public today following Babudar’s arrest in Lincoln, California, on Friday, July 7. Babudar will have his initial court appearance this afternoon in the U.S. District Court for the Eastern District of California in Sacramento, Calif.
This case will be presented to a federal grand jury to determine whether to return an indictment on these or any additional charges.
Babudar enjoyed a robust social media presence as Kansas City Chiefs superfan Twitter user @ChiefsAholic. He was charged in Tulsa County, Okla., with the robbery of the Tulsa Teachers Federal Credit Union on Dec. 16, 2022. Babudar was released on bond in February 2023, and in late March 2023 removed his ankle monitor and fled prosecution. Investigators recently located Babudar near Sacramento and a federal warrant was issued for his arrest on this complaint.
According to an affidavit filed in support of the federal criminal complaint, Babudar traveled throughout the Midwest to perpetrate a string of robberies at various banks and credit unions. He allegedly laundered the robbery proceeds through area casinos and bank accounts.
Following Babudar’s arrest in Oklahoma last December, FBI investigators began reviewing bank records, casino transaction records, and sensitive financial reporting to determine the breadth and scope of additional potential criminal activities. Babudar purchased and redeemed more than $1 million in chips from various casinos in Missouri, Kansas, and Illinois between April and December 2022, the affidavit says.
Investigators also reviewed unsolved bank robberies throughout the Midwest during that time frame. Babudar’s cell phone was placed in the same cities and locations for these previously unsolved bank robberies and attempted robberies, the affidavit says. In addition to the bank theft with which Babudar is charged in this complaint and the bank robbery charged in Oklahoma, the affidavit specifically refers to four bank robberies in Nebraska, Iowa, Tennessee and Oklahoma, and to the attempted robberies of two credit unions in Minnesota.
The complaint charges Babudar with stealing $70,000 from Great Western Bank in Clive, Iowa, on March 2, 2022, then transporting the stolen money across state lines from Iowa to Missouri.
According to the affidavit, he entered the bank wearing a ski mask and handed a teller a note demanding money and indicating he had a firearm. The teller handed Babudar $70,000; law enforcement officers later found $1,460 in $20 bills in the nearby woods along with a glove worn by Babudar during the bank robbery.
Over the next six weeks, Babudar deposited the same approximate amount of money that was stolen from Great Western Bank into his money market savings account, the affidavit says, and engaged in multiple casino chip purchases and redemptions at the Argosy Casino in Riverside, Mo.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges 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. Attorneys Patrick D. Daly and Stephanie C. Bradshaw. It was investigated by the FBI. The Placer County, Calif., Sheriff’s Department and the Lincoln, Calif., Police Department assisted in the arrest.
Court Filed Complaint & AffidavitJustice Department Statement on the European Union’s Adoption of Trans-Atlantic Data Privacy Framework to Restore Trust and Stability to Transatlantic Data Flows, Reflecting the Strength of EU-U.S. RelationshipRead the Press Release
Note: To obtain a copy of the AG designation and memo click Attorney General Designation Pursuant to Section 3(f) of Executive Order 14086 of the EU/EEA and Supporting Memorandum for the Attorney General’s designation of the EU/EEA. Other related information is available at www.justice.gov/opcl/executive-order-14086.
Following the European Commission’s adoption of its adequacy decision for the EU-U.S. Data Privacy Framework, the Justice Department made the following statement:
The Justice Department welcomes the European Commission’s adoption on July 10 of an adequacy decision for the United States as part of the EU-U.S. Data Privacy Framework, to which President Biden and European Commission President von der Leyen agreed in March 2022. The adequacy decision provides a basis in the law of the European Union for transfers of personal data from EU countries to the United States for commercial purposes. This flow of data underpins the $7 trillion-dollar U.S.-EU economic relationship and provides vital benefits to citizens and businesses on both sides of the Atlantic, enabling businesses of all sizes to compete in each other’s markets.
The Commission’s adoption of the adequacy decision also brings into effect the Attorney General’s designation of the EU and the three additional countries making up the European Economic Area (EEA) as “qualifying states” for purposes of implementing the redress mechanism established in Executive Order 14086. A country or a regional economic integration organization may be designated a “qualifying state” by the Attorney General if he determines, in consultation with the Secretary of State, the Secretary of Commerce, and the Director of National Intelligence, that it meets the requirements set forth in the executive order. That determination was made on June 30 for the EU/EEA, contingent upon the Commission’s adoption of an adequacy decision.
The Attorney General’s designation and the supporting memorandum for the designation are available at www.justice.gov/opcl/executive-order-14086. As a result of the designation and the adoption of the adequacy decision, EU/EEA individuals may now submit complaints to obtain redress for alleged violations of law in connection with U.S. signals intelligence activities affecting their personal data transferred to the United States.
The Justice Department looks forward to working with our partners at the European Commission, together with representatives of European data protection authorities, on continuing implementation of these data privacy safeguards.
Justice Department Seeks to Shut Down Missouri Tax Return PreparerRead the Press Release
The United States filed a complaint in the Eastern District of Missouri seeking to bar a St. Louis-based tax preparer from assisting in preparing federal income tax returns for others.
The government’s complaint alleges that, since at least 2017, Diane Shontae Williams, both individually and through her business, Dreams & Memories Professional Planning Services, prepared tax returns for customers that falsely decrease the amount of tax that customers owe or falsely increase her customers’ refunds. According to the complaint, Williams concocted fictitious businesses; falsified expenses to reduce both real and fictitious self‑employment income; claimed bogus residential energy credits; fabricated household employee income to claim higher tax credits for customers; and invented false itemized deductions, including unreimbursed business expenses and charitable donations.
The complaint further alleges that Williams does not identify herself as a paid preparer on her customers’ returns, which adds to the government’s difficulty in identifying and detecting her illicit tax preparation activities. The IRS specifically cautions taxpayers to avoid “ghost” preparers, who will prepare a tax return but refuse to sign or include their IRS Preparer Tax Identification Number (PTIN) as required by law.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer, as well as steps taxpayers can take to get a jumpstart on filing.
Taxpayers seeking assistance can access the IRS’s free directory of federal tax preparers. The IRS also has programs offering free basic return preparation for qualifying seniors and individuals with low to moderate income. In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $73,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Illinois Man Sentenced to Federal Prison for Possessing over 900 Grams of Heroin and FentanylRead the Press Release
A man who possessed 975.7 grams of heroin and fentanyl was sentenced today to more than 7 years in federal prison.
Matthew J. Moreno, age 43, from Riverdale, Illinois, received the prison term after a February 3, 2023 guilty plea to one count of possession with intent to distribute and aiding and abetting the possession with intent to distribute a controlled substance.
Evidence at the plea and sentencing hearings showed that Moreno was a passenger in a car that the Iowa State Patrol stopped for speeding. The driver of the vehicle, Donald Ray Owens, fled from officers, and a high-speed chase followed before the car ultimately crashed. During the chase, someone threw a vacuum‑sealed package out of the car which contained 975.7 grams of heroin and fentanyl. Officers also found over $17,000 in cash in Moreno’s and Owens’s possession.
Moreno was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Moreno was sentenced to 87 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
On March 15, 2023, Owens pled guilty to one count of possession with intent to distribute and aiding and abetting the possession with intent to distribute a controlled substance. Owens is scheduled to be sentenced on August 8, 2023.
Moreno is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jason Norwood and Special Assistant United States Attorney Adam J. Vander Stoep and was investigated by the Iowa State Patrol, the Iowa County Sheriff’s Office, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-32.
Follow us on Twitter @USAO_NDIA.
Idabel Resident Sentenced for Assault with the Intent to Commit MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lawrence Samuel McKinney, age 36, of Idabel, Oklahoma, was sentenced to 210 months in prison for one count of Assault with the Intent to Commit Murder.
The charges arose from investigations by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
On March 28, 2022, McKinney pleaded guilty to one count of Assault with the Intent to Commit Murder. At the plea hearing, McKinney admitted that he drove to Broken Bow, Oklahoma, and shot the victim with a shotgun with the specific intent to commit murder. The victim survived the shooting. The crime occurred in McCurtain County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Patrick R. Wyrick, U.S. District Judge for the Western District of Oklahoma, sitting by appointment, presided over the hearing in Muskogee. McKinney 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 Ryan Conway represented the United States.
Huntington Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Benjamin Jack Reed, 42, of Huntington, was sentenced today to two years and eight months in prison, to be followed by three years of supervised release, for aiding and abetting the distribution of fentanyl.
According to court documents and statements made in court, on April 29, 2022, Reed and Jermaine Lee Smith, 34, of Columbus, Ohio, sold approximately 27 grams of fentanyl to a confidential informant in a Huntington parking lot.
Smith pleaded guilty on July 6, 2023, to aiding and abetting the distribution of fentanyl. Smith is scheduled to be sentenced on October 10, 2023.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-211.
###
Houston Woman Charged with Cares Act Fraud and Theft of Government FundsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that TEMIKA SANTEMORE, age 43, currently a resident of Houston, Texas, was charged July 7, 2023 in a two-count bill of information with making false statements and theft of government funds related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
The CARES Act is a federal law enacted on March 29, 2020, to provide emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program (“PPP”). In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
In addition, the Economic Injury Disaster Loan (“EIDL”) program was a U.S. Small Business Administration (SBA) program that provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. The CARES Act provided funding for EIDL loans for business affected by the COVID-19 pandemic. In contrast to the PPP, EIDL loan amounts were determined based on the recipient businesses’ historical revenue and disbursed directly to the recipient by the SBA.
According to the charging documents, SANTEMORE made false statements to the SBA to fraudulently obtain pandemic-related relief loans funded by the federal government, including PPP funds. As a result, SANTEMORE received approximately $13,540 in such pandemic-related relief loans. SANTEMORE also applied for an EIDL from the SBA in July of 2021 and illegally received $5,000 for a dormant business that she owned.
SANTEMORE faces a sentence of up to five years in prison, up to $250,000 in fines, and up to three years of supervised release for the false statements count. She faces up to ten years in prison, up to $250,000 in fines, and up to three years of supervised release for the theft count. There is also a $100 mandatory special assessment fee per count due after conviction.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 Amtrak Office of Inspector General – Criminal Investigations, the Department of Labor – Office of the Inspector General, and the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is in charge of the prosecution.
Grand Jury Indicts Seven Defendants for Their Roles in Rochester Illegal Sports Gambling BusinessRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging seven individuals for their roles in an illegal gambling business headquartered in Rochester, NY. Named in the indictment are:
- Louis P. Ferrari II, Dominic Sprague, and Tomasso Sessa are charged with two counts of conspiracy, one count of transmission of wagering information, and two counts of operating an illegal gambling business.
- Anthony Amato, Joseph Lombardo, Jeffrey Boscarino, and James Civiletti are charged with one count of conspiracy, one count of transmission of wagering information, and one count of operating an illegal gambling business.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the indictment and a previously filed complaint, the defendants conspired to operate illegal poker games at 565 Blossom Road and an illegal sports betting operation through the website sport700.com. Defendants Ferrari and Sprague co-owned and operated the illegal poker games at 565 Blossom Road, and Ferrari operated the illegal sports betting book through sport700.com, managing individual bettors and overseeing sub-agents, including Sprague, who had their own books of individual bettors. In addition, Ferrari owns and operates Ferrari Excavating on Steel Street in Rochester, where he collected cash payment of gambling losses from players and then laundered the illegal proceeds through the Ferrari Excavating business. Sprague also owned and operated a pawn shop on Stone Road in Greece, NY, where he collected cash payments of gambling losses from bettors and paid gambling winnings to bettors.
Defendant Amato administrated sport700.com and assisted Ferrari and others in creating accounts, usernames, and passwords, and managing individual bettors and overseeing sub-agents who had their own books of individual bettors on sport700.com. Defendant Sessa managed the day-to-day operations of the illegal gambling operation at 565 Blossom Road. Defendants Lombardo and Boscarino were sub-agents under Ferrari through sport700.com. Defendant Civiletti was an employee of Sprague’s pawn shop, collecting payments of gambling losses from people on behalf of Ferrari and Sprague.
During the course of the investigation, investigators intercepted a series of calls and text messages between targets of the investigation, sub-agents and individual bettors discussing the placement of bets, collection of winnings, and payment of losses. The investigation revealed that Ferrari generated $1,241,172 in winnings, while Amato generated winnings totaling $8,945,629.
On April 17, 2021, as investigators arrived to execute a search warrant at 565 Blossom Road, they interrupted an ongoing illegal card game, which sent individuals fleeing. An unknown number of individuals successfully fled, eight were temporarily detained. Investigators seized multiple items such documents, which included gambling ledgers and timestamped website printouts of online gambling player account activities. That same day, they also seized the cell phones of Ferrari and Sprague, which both contained evidence of sports bookmaking.
Former New York State Trooper Thomas Loewke, who was charged separately in connection with this case, was previously convicted and is awaiting sentencing.
Defendants Ferrari, Lombardo, and Civiletti were arraigned this afternoon before U.S. Magistrate Judge Mark W. Pedersen and were released on conditions. Defendants Sprague and Amato will be arraigned on July 11, 2023, and defendants Boscarino and Sessa will be arraigned on July 12, 2023.
The indictment is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent-in-Charge Thomas Fattorusso, the New York State Police, under the direction of Major Brian Ratajczak, the Greece Police Department, under the direction of Chief Michael Wood, and Rochester Police Department, under the direction of Chief David Smith. Additional assistance was provided by the Monroe County District Attorney’s Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Fresno Sex Offender Pleads Guilty to Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Gary Lee Briggs, 66, of Fresno, pleaded guilty today to receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Jan. 3, 2020, a concerned citizen reported to law enforcement that Briggs appeared to be trying to lure an eight-year-old boy into Briggs’s apartment in Fresno. When officers confronted Briggs, he reported that he planned to test his ability to withstand urges that attracted him to the boy. Briggs also admitted that Facebook recently had terminated his account for having transmitted sexually explicit material on that platform. Facebook separately had notified the National Center for Missing & Exploited Children that Briggs’s Facebook account had been used to transmit sexually explicit images of minors from August through December 2019.
This case is the product of an investigation by the Central Valley Internet Crimes Against Children Task Force, specifically the Fresno Police Department, the Fresno County Sheriff’s Office, and Homeland Security Investigations. Assistant U.S. Attorney David Gappa is prosecuting the case.
Briggs is scheduled to be sentenced before U.S. District Judge Jennifer L. Thurston on Oct. 23, 2023. Briggs faces a mandatory prison term of between 15 and 40 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Fresno Man Charged in Operation No Fly Zone Sentenced to over 2 Years in Prison for Illegal Possession of AmmunitionRead the Press Release
FRESNO, Calif. — Donald Ray Phelps Jr., 29, of Fresno, was sentenced to two years and three months in prison for being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, the charges stemmed from Operation No Fly Zone, a multi‑agency, months-long investigation that sought to address a rise in the number of shootings and homicides in Fresno. The operation resulted in the arrests of over 40 individuals, including seven federal defendants.
On March 18, 2022, investigators learned about the presence of a firearm inside a car in which Phelps was a passenger. Officers conducted a traffic stop on the car, and during a search of the car, under the seat where Phelps had been sitting, officers found a loaded, privately manufactured, semi-automatic handgun with no serial number and a compatible extended firearm magazine.
This case was the product of an investigation by the Federal Bureau of Investigation. The following agencies also assisted: Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Fresno Police Department; the Fresno-area Multi-Agency Gang Enforcement Consortium (MAGEC); the California Department of Justice Special Operations Unit; the California Department of Justice Human Trafficking/Sexual Predator Apprehension Team; the California Highway Patrol; the Fresno County Sheriff’s Office; the Kings County Sheriff’s Office; the California Department of Corrections and Rehabilitation; and the Fresno County District Attorney’s Office. Assistant U.S. Attorneys Justin J. Gilio and Antonio J. Pataca 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 U.S. Department of Justice 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.
Former Warren Police Officer Charged with Using Excessive Force Against A Jail PrisonerRead the Press Release
DETROIT – A former Warren police officer has been charged in a federal criminal complaint with violating a jail prisoner’s civil rights by assaulting the prisoner without justification, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Peter J. Lucido, Macomb County Prosecutor, and Devin J. Kowalski, Acting Special Agent in Charge of the Detroit Field Division of the Federal Bureau of Investigation.
Matthew J. Rodriguez, 48, a former Warren Police Officer, was charged in the complaint with deprivation of rights under color of law.
According to the complaint, Rodriguez was working as a jail officer on June 13, 2023, at the Warren Police Department, when the victim was brought to the department after being arrested. While Rodriguez was processing the victim, Rodriguez repeatedly assaulted the prisoner without justification. The surveillance video inside the police department shows that while the victim was standing with his hands down at his sides, Rodriguez struck him in the head with enough force to cause the victim to stumble backwards. Rodriguez then shoved the victim against a wall, and threw him to the floor. While the victim was laying on the floor, Rodriguez used his closed fist to punch the victim repeatedly in the head. Rodriguez also slammed the victim’s head into the floor.
“The allegations in the complaint demonstrate a shocking abuse of authority by this officer which cannot be ignored, or go unpunished, stated U.S. Attorney Dawn N. Ison. “We are grateful for Prosecutor Lucido’s cooperation in this case, and his willingness to dismiss the state charges so that this federal case can go forward where the defendant now faces a felony charge.”
“We are cooperating with the U.S. Attorney to ensure that when fundamental liberties are threatened, justice prevails. Together, we will strive to bring about justice and ensure righteousness in the legal system, reminding everyone that the protection of civil rights is a cornerstone of our democracy,” said Macomb County Prosecutor Peter J. Lucido.
“One of the FBI’s most important missions is to protect the civil rights of all people, including those in police custody,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI in Michigan. “This defendant’s alleged conduct is not reflective of the honor and professionalism with which the men and women of the Warren Police Department perform their duties. I am grateful for the collaboration with the Macomb County Prosecutor's Office and the Warren Police Department which has been essential to this investigation.”
The defendant faces up to ten years in prison on the civil rights charge.
A criminal complaint is only a formal charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case was investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Robert Moran.
Macomb County Prosecutor Lucido originally brought misdemeanor charges of assault and battery and willful neglect of duty against defendant Rodriguez. Prosecutor Lucido intends to dismiss these charges so that the federal felony charge against Rodriguez can go forward.
Former Hells Angels Outlaw Motorcycle Gang Member Sentenced to 80 Months in Federal Prison for Drug TraffickingRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Nicholas Alexander Aguon, age 34, from Stockton, California, was sentenced to 80 months imprisonment by the District Court of Guam. Aguon was convicted of Conspiracy to Distribute Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 846 and 841(a)(1). The Court also ordered five years of supervised release and a $100 mandatory special assessment fee. Defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
Aguon traveled to Guam from Stockton, California, in 2017. He began distributing methamphetamine from two Tumon hotel rooms to numerous persons. The investigation also revealed that Aguon received large sums of money in his personal accounts and returned the proceeds back to his California supplier using money remitter services. The drug transactions were facilitated using cell phones and Facebook messenger. Aguon sold over a pound of methamphetamine before the distribution was detected by law enforcement.
“The sentence in this case sends a message of deterrence to those seeking to distribute drugs in Guam,” stated United States Attorney Anderson. “Combatting drug crime remains an important priority for our law enforcement partners. I applaud their efforts.”
“HSI is committed to investigating drug traffickers who trade in methamphetamine,” said John F. Tobon, Special Agent in Charge, HSI Honolulu. “Criminals like Aguon who distribute this poison will be investigated and prosecuted to stop the flow of dangerous drug into our communities.”
This investigation was conducted by the Homeland Security Investigations and prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
Former Correctional Officer Sentenced to Prison for Violating Inmate's Civil RightsRead the Press Release
BOSTON – A former senior Correctional Officer at U.S. Bureau of Prisons Federal Medical Center in Devens (FMC Devens) was sentenced today in federal court in Boston for using excessive force on an inmate.
Seth M. Bourget, 42, of Woodstock, Conn., was sentenced by U.S. District Court Judge Denise J. Casper to one year and one day in prison and two years of supervised release. In December 2022, Bourget was convicted by a federal jury of one count of deprivation of civil rights under color of law.
On or about June 18, 2019, Bourget struck a handcuffed inmate suffering from severe mental disorders with a large protective shield with excessive force, causing serious head injuries. Specifically, on the day of the incident, the inmate was acting out and not prepared for his move to a different unit. Evidence at trial established that the inmate was sprayed in the face with pepper spray and locked in a cell with his hands cuffed behind his back for approximately 45 minutes. As a result, the inmate was in an agitated state and unable to consistently engage in a coherent conversation or understand regular verbal commands. Bourget and other officers prepared to conduct a use of force on the inmate involving a train of five men entering the cell – which Bourget volunteered to lead using a protective shield. Trial evidence established that, upon entry into the cell, Bourget thrust the protective shield upward and struck the handcuffed inmate in the chin area, snapping the inmate’s head back and causing the inmate to fall back onto the concrete cell floor. The resulting impact caused significant injury to the inmate’s head, including lacerations that required 12 staples and a gash on his lip that required six sutures.
“Corrections officers are placed in a position of public trust and the overwhelming majority of correctional officers do their jobs with professionalism, respect and dedication to protect and serve. In this case, a jury unanimously found that Mr. Bourget abused his position of authority when he violently struck a mentally ill and defenseless inmate,” said Acting United States Attorney Joshua S. Levy. “This office will continue to hold accountable bad actors who abuse their power and violate the public’s trust in them.”
“No inmate should experience abuse at the hands of a Federal Bureau of Prisons employee. Bourget assaulted an inmate using excessive force, and today’s sentencing shows that those who abuse their power will be held accountable for their actions,” said Ryan T. Geach, Special Agent in Charge of the Department of Justice Office of the Inspector General New York Field Office.
“Corrections officer Seth Bourget betrayed the public trust when he violently struck a severely mentally ill inmate who was handcuffed inside a locked cell. Today’s sentence holds him accountable for his blatant disregard for the laws he swore to uphold, and the civil rights he violated,” said Christopher DiMenna. Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “As law enforcement officers, we are all bound by oath to serve all citizens equally, with compassion, professionalism, dignity, and respect which clearly did not happen in this case.”
Acting U.S. Attorney Levy; DOJ-OIG New York Field Office SAC Geach; and FBI Acting SAC DiMenna made the announcement today. Assistant U.S. Attorneys Neil J. Gallagher Jr. of the Public Corruption Unit and Torey B. Cummings of the Civil Rights & Human Trafficking Unit prosecuted the case.
Fmr. Dallas County Sheriff’s Employee Sentenced for Stealing $250k from Jail’s Commissary FundRead the Press Release
A former Dallas County Sheriff’s Office supervisor who embezzled more than $250,000 from the jail’s inmate property fund was sentenced today to almost three years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Umeka Treymane Myers, 50, was charged via criminal information on April 28. She pleaded guilty to theft from a program receiving federal funds in June 2022 and was sentenced Monday to 33 months in prison by Chief U.S. District Judge David Godbey, who also ordered her to pay $429,640.66 in restitution.
"For three years, Ms. Myers callously took advantage of a program receiving federal funds to support her personal bank account. Further, as a supervisor in a government role, she also selfishly risked damaging the credibility of hard-working civil servants that support our county infrastructure," said Dallas FBI Special Agent in Charge Chad Yarbrough. "I commend our colleagues at Dallas County for their full cooperation in rooting out greed and corruption in programs that are funded by taxpayer monies."
According to plea papers, Ms. Myers worked as a supervisor at the Lew Sterrett Justice Center’s inmate property vault, which refunds inmates’ commissary account balances upon their release.
When an inmate’s account contains more than $30, property vault employees give them the balance on debit cards generated by software from the Keef Group.
If an employee makes an error processing a debit card, the software generates an error message, which only a lead clerk or supervisor (such as Myers), can clear.
After overriding a debit card error, however, Ms. Myers used released inmates’ book-in numbers to create new and duplicate debit cards, then entered the same amount from the card issued to the released inmate on to the newly created card.
Between 2018 and 2021, she fraudulently issued dozens of debit cards, which she used in Texas, Louisiana, Nevada, Maryland, and New York. (Her spending was confirmed by Winstar, Choctaw, and Margaritaville casino records, Southwest Airlines records, Bank of America ATM surveillance footage, and personal bank records.)
Ms. Myers has been ordered to report to prison on Monday, Sept. 11.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the full cooperation of the Dallas County Sheriff’s Office. Assistant U.S. Attorney Marcus Busch prosecuted the case
Five Springfield Men Indicted for Drug Distribution and Firearm OffensesRead the Press Release
BOSTON – Five Springfield men were indicted on July 6, 2023, in connection with a conspiracy to distribute fentanyl.
- Abraham Heredia, 23, was charged with one count of conspiracy to distribute and possess with intent to distribute more than 400 grams of fentanyl;
- Jose Heredia, Jr., 34, was charged with one count of conspiracy to distribute and possess with intent to distribute more than 400 grams of fentanyl and one count of possession of a firearm in furtherance of a drug offense;
- Lamiek White, 29, was charged with one count of conspiracy to distribute and possess with intent to distribute more than 40 grams of fentanyl and one count of possession of a firearm;
- Isais Diaz, 24, was charged with one count of conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine and one count of conspiracy to distribute fentanyl; and
- Robert Collado, 38, was charged with one count of conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine.
Heredia, Heredia, Jr. and White were arrested in June 2023. White and Abraham Heredia were arraigned in federal court in Springfield on July 6, 2023, before U.S. District Court Magistrate Judge Katherine A. Robertson, and the remaining defendants will be arraigned in the upcoming weeks.
According to the charging documents, Heredia and Heredia, Jr. conspired on at least two dates to distribute fentanyl. On June 7, 2023, the defendants allegedly conspired to distribute more than one and a half kilograms of fentanyl. It is further alleged that approximately 200 grams of fentanyl and a firearm with an obliterated serial number were found during a search of White’s residence. Court documents also allege that Diaz conspired to distribute and possess with intent to distribute fentanyl and that he and Collado conspired to distribute and possess with intent to distribute more than 500 grams of cocaine.
The charge of conspiracy to distribute and possess with intent to distribute more than 400 grams of fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, up to a lifetime of supervised release and a fine of $10 million. The charge of conspiracy to distribute and possess with intent to distribute more than 40 grams of fentanyl provides for a mandatory minimum sentence of five years and up to 40 years in prison, up to a lifetime of supervised release and fine of up to $8 million. The charge of conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine provides for a mandatory minimum sentence of five years and up to 40 years in prison, up to a lifetime of supervised release and fine of $8 million. The charge of possessing a firearm in furtherance of a drug offense provides for a mandatory minimum sentence of five years and up to life in prison, which must be served consecutive to the sentence imposed for the drug offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Christopher DiMenna, Acting Special Agent in Charge of the U.S. Federal Bureau of Investigation, Boston Division made the announcement today. The Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; the Holyoke, Springfield, Chicopee, West Springfield and Easthampton Police Departments; the Berkshire, Hampden and Franklin County Sherriff’s Offices; and the Massachusetts State Police Gang Unit provided valuable assistance in the investigation. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Unit 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 https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Final Defendant Sentenced for Tucson-Based Drug Trafficking and Money Laundering ConspiracyRead the Press Release
TUCSON, Ariz. – Cecilia Campos, 49, of Pellham, Alabama, was sentenced on June 14, 2023, by United States District Court Judge James A. Soto to 18 months in prison, followed by 36 months of supervised release. Campos pleaded guilty to Conspiracy to Possess with Intent to Distribute Heroin and Methamphetamine and Conspiracy to Commit Laundering of Monetary Instruments.
Campos’ co-conspirators pleaded guilty and were sentenced as follows:
- Juan Randolfo Parrado-Herrera, 63, of Tucson, Arizona pleaded guilty to Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Cocaine and Conspiracy to Commit Laundering of Monetary Instruments. He also admitted that these crimes were committed while he was serving a term of supervised release in another federal case. He was sentenced to 180 months in prison on the new charges and a concurrent term of 24 months on the supervised release violation. His prison term will be followed by 60 months of supervised release.
- Ana Fernanda Contreras, 32, of Tucson, Arizona pleaded guilty to Conspiracy to Commit Laundering of Monetary Instruments. She was sentenced to a term of one year probation.
- Markita Denise Caldwell, 48, of Raytown, Missouri, pleaded guilty to Conspiracy to Commit Laundering of Monetary Instruments. She was sentenced to 10 months in prison, followed by 24 months of supervised release.
Parrado-Herrera and his co-conspirators possessed with intent to distribute 1,412.5 grams of methamphetamine, 122.8 grams of heroin, and 29 grams of cocaine to locations in and outside of Arizona for several years up until June 2, 2017.
As part of the conspiracy, Parrado-Herrera and Campos mailed numerous packages containing drugs from Tucson, Arizona to Hialeah and Orlando, Florida. Caldwell also mailed several different packages of narcotics to her residences in Kansas City, Missouri. Parrado-Herrera, Campos, Contreras, and Caldwell conspired to launder United States currency by directing the proceeds of narcotic sales to be deposited into accounts in the name of or accessible to Parrado-Herrera and Campos. Parrado-Herrera and Campos directed other co-conspirators across the country to deposit the proceeds of narcotic sales into bank accounts under their control, later withdrawing these proceeds from accounts in Tucson, Arizona. Parrado-Herrera and Campos laundered over $250,000 of narcotic proceeds using this method.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The Drug Enforcement Administration and Internal Revenue Service Criminal Investigation conducted the investigation. Assistant United States Attorney Sandra M. Hansen, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-18-02174-JAS
RELEASE NUMBER: 2023-105-Campos# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Federal Jury Convicts Grundy County, Ill. Businessman of Investment FraudRead the Press Release
CHICAGO — A federal jury in Chicago has convicted a Grundy County, Ill. businessman of scheming to fraudulently raise at least $130 million from more than 500 investors.
KENNETH D. COURTRIGHT, 53, of Minooka, Ill., was convicted Friday on all seven wire fraud counts against him. Each count is punishable by up to 20 years in federal prison. U.S. District Judge Matthew F. Kennelly set sentencing for Oct. 4, 2023, at 1:15 p.m.
Evidence at the two-week trial in U.S. District Court in Chicago revealed that Courtright owned and operated Today’s Growth Consultant, Inc., a Minooka, Ill.-based company that did business under the name The Income Store. The company purported to build or acquire websites for investors. From 2015 to 2019, Courtright schemed to defraud investors by falsely promising to provide them with a guaranteed income stream of either 50% of the advertising revenue generated by the websites or the monthly equivalent of at least 15% of the investor’s upfront fee. Courtright backed these guarantees through fraudulent claims that his company was financially healthy. In reality, the payment of returns to investors was primarily funded through money raised from new investors.
The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Jason Yonan and Adam Rosenbloom.
The U.S. Securities and Exchange Commission provided valuable assistance.
Dominican Man Indicted for Illegal ReentryRead the Press Release
BOSTON – A Dominican man has been indicted by a federal grand jury in Boston for illegally reentering the United States after deportation.
Manny Bautista-Arias, 31, was charged with one count of unlawful reentry of a deported alien. He will appear in federal court in Boston at a later date.
According to the charging documents, Bautista-Arias was deported from the United States in September 2017. It is alleged that sometime after his removal, Bautista-Arias unlawfully returned to the United States and was removed again in November 2018. Sometime after his removal, it is alleged that Bautista-Arias unlawfully reentered the United States for a second time. On June 10, 2023, Bautista-Arias was arrested by immigration authorities in Quincy.
The charge of unlawful reentry of a deported alien provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Meghan C. Cleary of Levy’s Major Crimes Unit 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.
Defendant Charged with Theft of Cryptocurrency and NFTs Through Spoofing of OpenSea MarketplaceRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a four-count Indictment charging SOUFIANE OULAHYANE, a/k/a “Soufiane Oulahya,” for a scheme to impersonate the OpenSea marketplace in order to obtain unauthorized access to cryptocurrency and non-fungible tokens (“NFTs”). In September 2021, OULAHYANE stole approximately $450,000 worth of cryptocurrency and NFTs from a victim in Manhattan. OULAHYANE is currently in custody in Morocco for domestic Moroccan charges.
U.S. Attorney Damian Williams said: “As alleged, Soufiane Oulahyane used a common cybercrime technique to steal victim cryptocurrency and NFTs. ‘Spoofing’ is one of the oldest tricks in the criminal playbook. Oulahyane adapted this old tool for use in a new and developing arena – the crypto space. The charges unsealed today should serve as a reminder that digital assets, such as cryptocurrency and NFTs, are not immune from cyber fraudsters and that my Office is committed to prosecuting these fraudsters both here and abroad.”
FBI Acting Assistant Director in Charge Christie M. Curtis said: “Oulahyane is alleged to have operated a spoof website to gain unauthorized access to victims’ cryptocurrency wallets to steal their cryptocurrency and NFTs. The FBI is committed to holding all individuals who conduct malicious cyberattacks against U.S. interests accountable in the United States criminal justice system - no matter where in the world they are located.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
In or about September 2021, SOUFIANE OULAHYANE, a/k/a “Soufiane Oulahya,” engaged in a scheme to “spoof” the login page to the OpenSea marketplace, the first and largest NFT marketplace. Through paid advertisements on a popular search engine, OULAHYANE caused his spoofed version of OpenSea to appear first in search results for “opensea.” The spoofed website was purposefully designed to look like the legitimate OpenSea login page in order to trick unsuspecting victims into thinking they were interfacing with the real OpenSea marketplace. However, when victims entered their login credentials or other private information on the spoofed site, their credentials were automatically sent to an email account controlled by OULAHYANE.
On or about September 26, 2021, a Manhattan-based victim (“Victim-1”) used a popular search engine to search for “opensea.” That search yielded a link that, unbeknownst to Victim-1, connected to OULAHYANE’s spoofed version of the OpenSea login page. Believing that the spoofed website was the legitimate OpenSea website, Victim-1 entered the seed phrase to their cryptocurrency wallet. By doing this, Victim-1 unwittingly transferred their seed phrase to OULAHYANE, giving access to Victim-1’s cryptocurrency wallet.
Almost immediately, OULAHYANE used Victim-1’s seed phrase to obtain unauthorized access to Victim-1’s cryptocurrency wallet. OULAHYANE then transferred the cryptocurrency from Victim-1’s wallet to another cryptocurrency wallet outside of Victim-1’s control. In addition, OULAHYANE sold approximately 39 of Victim-1’s NFTs on the OpenSea marketplace and transferred the fraudulent cryptocurrency proceeds to a wallet outside of Victim-1’s control. For example:
OULAHYANE sold an NFT from the “Bored Ape Yacht Club” series, depicted below, which Victim-1 had purchased for approximately 49 ETH.
OULAHYANE sold an NFT from the “Meebit” series, depicted below, which Victim-1 had purchased for approximately 9.88 ETH.
OULAHYANE sold an NFT from the “Bored Ape Kennel Club” series, depicted below, which Victim-1 had purchased for six ETH.
OULAHYANE sold an NFT from the “CryptoDad” series, depicted below, which Victim-1 had purchased for 1.789 ETH.
In total, OULAHYANE stole cryptocurrency and NFTs from Victim-1 that Victim-1 had paid approximately $448,923 to obtain.
* * *
OULAHYANE, 25, of Morocco, is charged with wire fraud, which carries a maximum sentence of 20 years in prison; the use of an unauthorized access device, which carries a maximum sentence of 10 years in prison; affecting transactions with an access device to receive something of value that is equal to or greater than $1,000, which carries a maximum sentence of 15 years in prison; and aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.
The maximum and mandatory potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Nicholas W. Chiuchiolo is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Oulahyane IndictmentDanville, Illinois, Man Sentenced to 200 Months in Prison for Drug Trafficking with Multiple FirearmsRead the Press Release
URBANA, Ill. – A Danville, Illinois, man, James G. Phillips, 34, of the 900 block of North Hazel Street, was sentenced on July 7, 2023, to 200 months of imprisonment for possession with intent to distribute 500 grams or more of methamphetamine, carrying a firearm during and in relation to a drug trafficking crime, and possessing a firearm as a felon.
At the sentencing hearing in front of U.S. District Judge Colin S. Bruce, the government presented evidence that law enforcement executed a traffic stop of a car in Danville, and, during the stop, agents discovered a backpack belonging to Phillips, a passenger, that contained nearly 4.5 pounds of high purity methamphetamine, two handguns, and several thousand dollars in United States currency. At the time, Phillips was on mandatory supervised release in connection with a state conviction for unlawful possession of a weapon by a felon, and he also had three prior convictions for controlled substance offenses.
Also at the hearing, Judge Bruce stated that Phillips’s behavior was something he would expect to see from a younger man. Explaining why 200 months of imprisonment was a just sentence, Judge Bruce told Phillips, “You need to stop and figure out where your life is going.”
Phillips had previously pleaded guilty to the aforementioned charges.
The statutory penalties for possession with intent to distribute 500 grams or more of methamphetamine included at least ten years to life imprisonment, up to a $10,000,000 fine, and a maximum life term of supervised release. The penalties for possessing a firearm as a felon in Phillips’s case were up to ten years of imprisonment, up to a $250,000 fine, and up to three years of supervised release. Finally, carrying a firearm during and in relation to a drug trafficking crime required a consecutive mandatory minimum sentence of five years and up to life imprisonment, up to a $250,000 fine, and up to five years of supervised release.
The Danville Police Department and the Vermilion County Metropolitan Enforcement Group investigated the case. Assistant U.S. Attorney William J. Lynch represented the government in the prosecution in collaboration with the Vermilion County State’s Attorney’s Office.